Traeger, Inc.COOK

Traeger, Inc. Fair Value Disclosure

10-KFiled Mar 6, 20263 min read
FAIR VALUE MEASUREMENTS
The following table presents information about the fair value measurement of the Company’s financial instruments (in thousands):
  
As of December 31,
Financial Instruments Recorded at Fair Value on a Recurring Basis:Fair Value Measurement Level20252024
Assets:
Derivative assets—foreign currency contracts (1)
2$210 $— 
Derivative assets—interest rate swap contract (2)
21,047 9,223 
Total assets$1,257 $9,223 
Liabilities:
Derivative liabilities—foreign currency contracts (3)
2$— $2,871 
Total liabilities$— $2,871 
(1)Included within prepaid expenses and other current assets in the accompanying consolidated balance sheets.
(2)Included within prepaid expenses and other current assets in the accompanying consolidated balance sheets.
(3)Included within other current liabilities in the accompanying consolidated balance sheets.
Transfers of assets and liabilities among Level 1, Level 2, and Level 3 are recorded as of the actual date of the events or change in circumstances that caused the transfer. For the years ended December 31, 2025 and 2024, there were no transfers between levels of the fair value hierarchy of the Company’s assets or liabilities measured at fair value.
The fair value of the Company’s derivative assets and liabilities through its foreign currency contracts is based upon observable market-based inputs that reflect the present values of the differences between estimated future foreign currency rates versus fixed future settlement prices per the contracts and therefore are classified within Level 2. The fair value of the Company’s interest rate swap contract held with a financial institution is classified as a Level 2 financial instrument, which is valued using observable underlying interest rates and market-determined risk premiums at the reporting date.
Certain assets are measured at fair value on a non-recurring basis and are subject to fair value adjustments under certain circumstances. These assets include goodwill, which is evaluated using Level 3 inputs when written down to fair value and thus impaired. Once impaired, such assets are not subsequently adjusted to fair value unless further impairment occurs. During an interim goodwill impairment test, the Company determined that the carrying value of goodwill was in excess of its fair value after consideration of a control premium and recorded a non-cash impairment charge of $74.7 million. For further details, see Note 2 – Summary of Significant Accounting Policies.
The following financial instruments are recorded at their carrying amount (in thousands):
 
As of December 31, 2025
As of December 31, 2024
Financial Instruments Recorded at Carrying Amount:Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Liabilities:
Debt—Credit Facilities (1)
$403,325 $377,613 $403,575 $395,421 
Total liabilities$403,325 $377,613 $403,575 $395,421 
(1)Included within the current portion of notes payable and notes payable, net of current portion in the accompanying consolidated balance sheets. Due to the unobservable nature of the inputs these financial instruments are considered to be Level 2 instruments in the fair value hierarchy.
Due to the short-term nature of the borrowings under the Receivables Financing Agreement (as defined below), the carrying amounts approximate their fair values.

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 7, 2025
2023Mar 8, 2024
2022Mar 16, 2023
2021Mar 29, 2022

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.

Other Available Disclosures

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