Company: CHEF
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001517175-25-000002
Chunk: 98

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 8
Chunk 98
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279,097 10.7 %Dairy and eggs255,466 6.7 %228,582 6.7 %153,334 5.9 %Oils and vinegars131,190 3.5 %129,194 3.8 %113,386 4.3 %Kitchen supplies76,129 1.9 %69,610 1.8 %59,345 2.3 %Total specialty$2,338,938 61.6 %$2,081,533 60.6 %$1,487,172 56.9 %Total net sales$3,794,212 100 %$3,433,763 100 %$2,613,399 100 %The Company determines its product category classification based on how the Company currently markets its products to its customers. The Company’s definition of its principal product categories may differ from the way in which other companies present similar information. Net sales by product category includes estimates of product mix for certain locations that are not yet fully integrated into the Company’s information technology systems as of the reporting date.Deferred RevenueCertain customer arrangements in the Company’s direct-to-consumer business, prepaid gift plans and gift card purchases, result in deferred revenues when cash payments are received in advance of performance. The Company recognizes revenue on its prepaid gift plans when control of each product is transferred to the customer. Performance obligations under the Company’s prepaid gift plans are satisfied within a period of twelve months or less. Gift cards issued by the Company do not have expiration dates. The Company records a liability for unredeemed gift cards at the time gift cards are sold and the liability is reduced when the card is redeemed, the value of the card is escheated to the appropriate government agency, or through breakage. Gift card breakage is estimated based on the Company’s historical redemption experience and expected trends in redemption patterns. Amounts recognized through breakage represent the portion of the gift card liability that is not subject to unclaimed property laws and for which the likelihood of redemption is remote. The Company recorded deferred revenues, reflected within accrued liabilities on the Company’s consolidated balance sheets, of $1,942 and $2,459 as of December 27, 2024 and December 29, 2023, respectively.

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Right of ReturnThe Company’s standard terms and conditions provide customers with a right of return if the goods received are not merchantable