Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present our assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024 classified by the input method used to measure fair value:


(in thousands)	Level 1		Level 2		Level 3

December 31, 2025
Assets
Investments:
Money Market Funds	$	2,666	$	—	$	—
Mutual Funds	16,727		—		—
Corporate Debt Securities	—		1,320		—
Government Debt Securities	—		63,136		—
Derivative Instruments	—		124		—
Total Assets	19,393		64,580		—
Liabilities
Derivative Instruments	—		2,717		—
Total Liabilities	$	—	$	2,717	$	—

December 31, 2024
Assets
Investments:
Money Market Funds	$	596	$	—	$	—
Mutual Funds	10,653		—		—
Corporate Debt Securities	—		1,628		—
Government Debt Securities	—		61,131		—
Total Assets	11,249		62,759		—
Liabilities
Derivative Instruments	—		1,989		—
Total Liabilities	$	—	$	1,989	$	—

Schedule of Fair Value of Assets and Liabilities

The following reflects the carrying value and estimated fair value of these assets and liabilities as of December 31, 2025 and 2024:


	December 31, 2025				December 31, 2024
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value

Assets:
Cash and Cash Equivalents	$	386,193	$	386,193	$	294,651	$	294,651
Total	386,193		386,193		294,651		294,651
Liabilities:
Short-Term Debt	60,242		60,242		69,615		69,615
Long-Term Debt	1,043,517		923,639		943,734		806,826
Total	$	1,103,759	$	983,881	$	1,013,349	$	876,441

Otter Tail Corp 10-K