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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
 
Recurring Fair Value Measurements
 
All of our derivative instruments are classified as Level 2 of the fair value hierarchy and are reported in the condensed consolidated balance sheets within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ at June 30, 2026, and December 31, 2025. The fair values of our derivative instruments were an insignificant asset at June 30, 2026, and an insignificant asset and an insignificant liability at December 31, 2025. See Note 7 — Derivative Financial Instruments for more information.

The carrying amounts of our cash, cash equivalents, and restricted cash approximate their fair value and are classified as Level
1 of the fair value hierarchy. The carrying amounts of our accounts receivable, accounts payable, and current accrued expenses and other liabilities approximate their fair value as recorded due to the short-term maturity of these instruments and are classified as Level 2 of the fair value hierarchy.
Our borrowing instruments are recorded at their carrying values in the condensed consolidated balance sheets, which may differ from their respective fair values. The Term Loan B Facility (as defined below) and the Notes (as defined below) are classified as Level 1 of the fair value hierarchy and are reported in our condensed consolidated balance sheet at face value, less unamortized issuance costs. The fair value of our Revolving Facility (as defined below) approximates its carrying value at June 30, 2026, and December 31, 2025, based on interest rates currently available to us for similar borrowings. The carrying value and fair value of our borrowing instruments as of June 30, 2026, and December 31, 2025, were:
June 30, 2026December 31, 2025
Carrying ValueFair ValueCarrying ValueFair Value
(in thousands)
Term Loan B Facility$500,000 $502,813 $500,000 $504,063 
2029 Notes350,000 339,906 350,000 339,304 
2031 Notes350,000 326,454 350,000 323,971 
Revolving Facility134,000 134,000 62,000 62,000 

Non-Financial Assets and Liabilities

Our non-financial assets, which primarily consist of property and equipment, right-of-use assets, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value.

The fair values of these assets were determined based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans. We recorded impairments within ‘Asset impairments’ in our condensed consolidated statements of operations as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in thousands)
Indefinite-lived trademark impairment (1)
$— $430,000 $— $430,000 
Goodwill impairment (1)
— 307,000 — 307,000 
Leasehold improvement asset impairment (2)
— — 3,301 — 
Information technology systems impairment (3)
— 1,115 — 1,115 
Total asset impairments$— $738,115 $3,301 $738,115 
(1) During the three months ended June 30, 2025, we recognized impairment charges of $430.0 million and $307.0 million to our indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill, respectively. Refer to Note 3 — Goodwill and Intangible Assets, Net for additional information.
(2) During the six months ended June 30, 2026, we recognized impairment charges of $3.3 million for certain HEYDUDE retail stores.
(3) During the three months ended June 30, 2025, we recognized an impairment of $1.1 million related to the discontinuation of an information technology project.