Bloomin' Brands, Inc.BLMN
Bloomin' Brands, Inc. Fair Value Disclosure
Fair Value Measurements
Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated:
| CONSOLIDATED BALANCE SHEET CLASSIFICATION | MEASUREMENT LEVEL | FAIR VALUE | |||||||||||||||||||||
| (dollars in thousands) | DECEMBER 28, 2025 | DECEMBER 29, 2024 | |||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Short-term investments | Cash and cash equivalents | Level 1 | $ | 5,597 | $ | 11,868 | |||||||||||||||||
| Interest rate swaps | Level 2 | $ | 208 | $ | — | ||||||||||||||||||
| Foreign currency forward contracts | Other current assets, net | Level 2 | $ | — | $ | 304 | |||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Interest rate swaps | Level 2 | $ | 330 | $ | 579 | ||||||||||||||||||
| Interest rate swaps | Level 2 | $ | 87 | $ | 255 | ||||||||||||||||||
Fair value of each class of financial instruments is determined based on the following:
| FINANCIAL INSTRUMENT | METHODS AND ASSUMPTIONS | |||||||
| Short-term investments | Carrying value approximates fair value because maturities are less than three months. | |||||||
| Derivative instruments | The Company’s derivative instruments include interest rate swaps and foreign currency forward contracts. Fair value measurements are based on the contractual terms of the derivatives and observable market-based inputs. Interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. Foreign currency forwards are valued by comparing the contracted forward exchange rate to the current market forward exchange rate. Key inputs for the valuation of the foreign currency forwards are spot rates, foreign currency forward rates, and the interest rate curve of the domestic currency. The Company also considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of December 28, 2025 and December 29, 2024, the Company determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. | |||||||
Fair Value Measurements on a Nonrecurring Basis - Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to property, fixtures and equipment, operating lease right-of-use assets, goodwill and other intangible assets, which are remeasured when carrying value exceeds fair value. Carrying value after impairment approximates fair value. The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis for the periods indicated:
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| (dollars in thousands) | REMAINING CARRYING VALUE | TOTAL IMPAIRMENT | REMAINING CARRYING VALUE | TOTAL IMPAIRMENT | REMAINING CARRYING VALUE | TOTAL IMPAIRMENT | |||||||||||||||||||||||||||||
| Operating lease right-of-use assets (1) | $ | 23,363 | $ | 11,273 | $ | 14,053 | $ | 23,895 | $ | 4,057 | $ | 10,210 | |||||||||||||||||||||||
| Property, fixtures and equipment (2) | 27,325 | 31,931 | 17,096 | 22,540 | 4,623 | 30,202 | |||||||||||||||||||||||||||||
| Goodwill (3) | — | 28,188 | — | — | — | — | |||||||||||||||||||||||||||||
| $ | 50,688 | $ | 71,392 | $ | 31,149 | $ | 46,435 | $ | 8,680 | $ | 40,412 | ||||||||||||||||||||||||
________________
(1)Carrying values measured using discounted cash flow models (Level 3).
(2)Carrying values measured using Level 2 inputs to estimate fair value totaled $7.8 million for 2025 and $1.2 million for 2024 and 2023. All other assets were valued using Level 3 inputs. Third-party market appraisals and executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate the fair value.
(3)Carrying values measured using Level 3 inputs. See Footnote 9 - Goodwill and Intangible Assets, Net for additional details.
See Note 5 - Impairments and Exit Costs for information regarding impairment charges. Projected future cash flows, including discount rate and growth rate assumptions, are derived from current economic conditions, expectations of management and projected trends of current operating results. As a result, the Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs that fall within Level 3 of the fair value hierarchy.
In the assessment of impairment for operating locations, the Company determines the fair values of individual operating locations using an income approach, which requires discounting projected future cash flows. When determining the stream of projected future cash flows associated with an individual operating location, management makes assumptions, including highest and best use and inputs from restaurant operations, where necessary, and about key variables including the following unobservable inputs: revenue growth rates, controllable and uncontrollable expenses, and asset residual values. In order to calculate the present value of those future cash flows, the Company discounts its cash flow estimates at its weighted-average cost of capital applicable to the country in which the measured assets reside.
Fair Value of Financial Instruments - The Company’s non-derivative financial instruments consist of cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts reported on its Consolidated Balance Sheets due to their short duration.
Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated:
| DECEMBER 28, 2025 | DECEMBER 29, 2024 | ||||||||||||||||||||||
| CARRYING VALUE | FAIR VALUE LEVEL 2 | CARRYING VALUE | FAIR VALUE LEVEL 2 | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Senior secured credit facility - revolving credit facility | $ | 490,000 | $ | 490,000 | $ | 710,000 | $ | 710,000 | |||||||||||||||
| 2025 Notes (1) | $ | — | $ | — | $ | 20,724 | $ | 24,145 | |||||||||||||||
| 2029 Notes | $ | 300,000 | $ | 269,505 | $ | 300,000 | $ | 270,132 | |||||||||||||||
________________
(1)On May 1, 2025, the 2025 Notes matured and were settled in cash. See Note 11 - Convertible Senior Notes for additional details.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 24, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.