National Vision Holdings, Inc.

3. Fair Value Measurement

Recurring fair value measurements

Interest Rate Derivatives

Derivative assets and liabilities are recognized at fair value, which reflects the estimated amounts the Company would receive or pay to settle the interest rate derivatives prior to their contractual expiration dates. The fair value is based on information that is model-driven based on regression analysis and whose inputs were observable (Level 2 inputs) such as Term Secured Overnight Financing Rate (“Term SOFR”) forward rates. See Note 5. “Interest Rate Derivatives” for further details.

Convertible Promissory Note

On December 17, 2024, the Company purchased $1.3 million principal amount of a convertible promissory note issued by a private company. During fiscal year 2025, the Company purchased an additional $1.2 million in the same instrument. As of April 4, 2026, we estimated the fair value of the convertible promissory note to be $2.5 million. Refer to Note 1. “Description of Business and Basis of Presentation” for more information on the investments in this entity.

Non-recurring fair value measurements

A decrease in the estimated cash flows would lead to a lower fair value measurement, as would an increase in the discount rate. These non-recurring fair value measurements are classified as Level 3 measurements in the fair value hierarchy.

Long-lived Store and ROU Store Assets

We recognizedno impairment charges during the three months ended April 4, 2026, compared to $0.5 million related to tangible long-lived store assets and Right of Use (“ROU”) assets for the three months ended March 29, 2025. The cash flows used in estimating fair value were discounted using a market rate of 10.5% during the three months ended March 29, 2025. The estimated remaining fair value of the store assets impaired during the three months ended March 29, 2025 was $0.5 million. Substantially all of the remaining fair value of the impaired store assets represents the fair value of ROU assets.

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Additional fair value information

Term Loan A and Revolving Loans

Since the borrowings under first lien term loan (“Term Loan A”) and revolving credit loans (the “Revolving Loans”) utilize variable interest rate setting mechanisms such as Term SOFR, the fair values of these borrowings are deemed to approximate the carrying values. We also considered the effect of our own credit risk on the fair values of Term Loan A and Revolving Loans. Refer to Note 4. “Debt” for more information on these borrowings.