Company: SVV
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001883313-25-000026
Chunk: 26

Company: Savers Value Village, Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 affected by changes in interest rates. The Company’s Senior Secured Credit Facilities bear interest based on market rates plus an applicable margin. Because the interest rate on the Company’s floating-rate debt is tied to market rates, the Company may from time to time manage its exposure to interest rate movements by effectively converting a portion of its floating-rate debt to fixed-rate debt using interest rate swaps. Interest rate swaps, as used by the Company, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement without exchange of the underlying notional amount. The Company previously entered into two interest rate swaps that were designated as cash flow hedges. In April 2024, the Company terminated its interest rate swaps, resulting in net proceeds of $10.3 million. All amounts deferred into accumulated other comprehensive income prior to termination will be amortized to interest expense through May 2025, being the original maturity date of the interest rate swaps.The fair value of forward contracts were as follows:(in thousands)Balance Sheet LocationMarch 29, 2025December 28, 2024Forward contracts not designated as hedging instrumentsDerivative asset – current$3,045 $4,574 The impact of derivative financial instruments on the unaudited interim Condensed Consolidated Statements of Operations and Comprehensive Loss was as follows:Thirteen Weeks Ended(in thousands)March 29, 2025March 30, 2024Loss (gain) on forward contracts recognized in (gain) loss on foreign currency, net$345 $(271)Gain on cross currency swaps recognized in (gain) loss on foreign currency, net$— $(5,614)Gain on interest rate swaps recognized in interest expense, net$(2,636)$(3,024)The table below presents the effect of cash flow hedge accounting on other comprehensive income (loss), net of tax:Thirteen Weeks Ended(in thousands)March 29, 2025March 30, 2024Gain recognized in other comprehensive loss$— $2,199 Gain reclassified from accumulated other comprehensive income into net loss$2,636 $3,024 As of March 29, 2025 and December 28, 2024, the Company’s total deferred gain in accumulated other comprehensive income in the unaudited interim Condensed Consolidated Balance Sheets was $1.8 million and $4.4 million, respectively. Amounts reclassified from accumulated