Company: ICUI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000883984-25-000035
Chunk: 143

Company: ICU MEDICAL INC/DE
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 143
---
 us in a specific territory for a three-year period that ended September 2024. The terms of the agreement included a contingent earn-out payment. The contingent earn-out payment could not exceed $6.0 million and was to be earned based on certain revenue targets over a twelve-month measurement period determined by the highest four consecutive quarters commencing over a two-year period starting on the closing date of the agreement and provided that the distributor is in compliance with its obligations under the agreement. As of December 31, 2023, the earn-out measurement period ended. The fair value of the contingent earn-out was determined to be $3.4 million and was paid out in the first quarter of 2024.    Foreign Exchange Contracts and Interest Rate Contracts        The fair value of our Level 2 foreign exchange contracts is estimated using observable market inputs such as known notional value amounts, spot and forward exchange rates. These inputs relate to liquid, heavily traded currencies with active markets which are available for the full term of the derivative.The fair value of our Level 2 interest rate swaps is estimated using a pricing model that reflects the terms of the contracts, including the period to maturity, and relies on observable market inputs such as known notional value amounts and USD interest rate curves.Our assets and liabilities measured at fair value on a recurring basis consisted of the following Level 1, 2 and 3 inputs as defined above (in thousands):

24

ICU MEDICAL, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)

 Fair value measurements as of September 30, 2025 Total carryingvalueQuoted pricesin activemarkets foridenticalassets (level 1)Significantotherobservableinputs (level 2)Significantunobservableinputs (level 3)Assets:Foreign exchange contracts:Prepaid expenses and other current assets$3,400 $— $3,400 $— Other assets28 — 28 — Interest rate contracts:Prepaid expenses and other current assets3,977 — 3,977 — Total Assets$7,405 $— $7,405 $— Liabilities:Foreign exchange contracts:Accrued liabilities$1,265 $— $1,265 $— Other long-term liabilities23 — 23 — Interest rate contracts:Other long-term