Company: ACEL
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001698991-25-000051
Chunk: 32

Company: Accel Entertainment, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 32
---
in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Assets:  Interest rate caplets6,821 — 6,821 — 

21

Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements — (Continued)

Interest rate capletsThe Company determines the fair value of the interest rate caplets using quotes that are based on models whose inputs are observable SOFR forward interest rate curves. The valuation of the interest rate caplets is considered to be a Level 2 fair value measurement as the significant inputs are observable. Unrealized changes in the fair value of the interest rate caplets are classified within other comprehensive income on the accompanying condensed consolidated statements of operations and comprehensive income. Realized gains on the interest rate caplets are recorded to interest expense, net on the accompanying condensed consolidated statements of operations and comprehensive income and included within cash payments for interest, net on the condensed consolidated statements of cash flow. Liabilities measured at fair valueThe following tables summarize the Company’s liabilities that are measured at fair value on a recurring basis (in thousands):Fair Value Measurement at Reporting Date UsingSeptember 30, 2025Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Liabilities:Contingent consideration$14,879 $— $— $14,879 Contingent earnout shares34,312 — 34,312 — Total$49,191 $— $34,312 $14,879 Fair Value Measurement at Reporting Date UsingDecember 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Liabilities:Contingent consideration$13,928 $— $— $13,928 Contingent earnout shares33,103 — 33,103 — Total$47,031 $— $33,103 $13,928 Contingent considerationThe Company uses a discounted cash flow analysis to determine the value of contingent consideration upon acquisition and updates this estimate on a recurring basis