Company: CHEF
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001517175-25-000021
Chunk: 49

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 49
---
 of a discount rate to present value the payments. A significant change in projected results, discount rate, or probabilities of occurrence could result in a significantly higher or lower fair value measurement. Changes in the fair value of contingent earn-out liabilities are reflected in other operating expenses (income), net on the condensed consolidated statements of operations.The contingent earn-out liability totaled $1,350 as of September 26, 2025, of which $600 is long-term and reflected as other liabilities on the Company’s condensed consolidated balance sheets. The remaining portion is short-term and reflected as accrued liabilities on the Company’s condensed consolidated balance sheets. The contingent earn-out liability totaled $750 as of December 27, 2024 and is all short-term in nature. Contingent earn-out liability payments in excess of the acquisition date fair value of the underlying contingent earn-out liability are classified as operating activities on the Company’s condensed consolidated statements of cash flows and all other such payments are classified as financing activities.Fair Value of Financial InstrumentsThe carrying amounts reported in the Company’s condensed consolidated balance sheets for accounts receivable and accounts payable approximate fair value due to their immediate to short-term nature. The fair values of the asset-based loan facility and term loan approximated their book values as of September 26, 2025 and December 27, 2024, as these instruments had variable interest rates that reflected current market rates available to the Company and are classified as Level 2 fair value measurements.The following table presents the carrying value and fair value of the Company’s convertible notes and its unsecured note issued in connection with the acquisition of Oakville Produce Partners, LLC (“GreenLeaf”) in fiscal 2023 (“GreenLeaf Note”). The fair value of the Company’s 2028 Convertible Senior Notes was based on bid/ask quotes as of or near the balance sheet date. The fair value of the GreenLeaf Note as of December 27, 2024 was determined based upon observable market prices of similar debt instruments. September 26, 2025December 27, 2024Fair Value HierarchyCarrying ValueFair ValueCarrying ValueFair Value2028 Convertible Senior NotesLevel 2$287,500 $417,773 $287,500 $365,556 GreenLeaf NoteLevel 2$— $— $5,000 $5,070 

Note 5 – Inventories

Inventories consist primarily of finished product and are reflected net of adjustments