Company: SVV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001883313-25-000066
Chunk: 34

Company: Savers Value Village, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 Development (“OECD”) proposed model rules to ensure a minimal level of taxation (commonly referred to as Pillar II) and the European Union member states have agreed to implement Pillar II’s proposed global corporate minimum tax rate of 15%. We considered the applicable tax law changes from Pillar II implementation in the relevant countries in which we operate, and there is no material impact to our tax provision for the thirteen and twenty-six weeks ended June 28, 2025. We will continue to evaluate the impact of these tax law changes in future reporting periods.On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (“OBBBA”), which encompasses a broad range of tax reform provisions affecting businesses, including extensions and modifications of certain provisions of the Tax Cuts & Jobs Act (“TCJA”). The OBBBA also makes some key elements of the TCJA permanent, including 100% bonus depreciation, domestic research cost expensing, and deductibility of business interest expense. Under GAAP, the effect of such tax legislation changes is required to be recognized in the period of enactment. As the OBBBA was signed into law after the Company’s current period-end date, the financial statements as of June 28, 2025 do not reflect the effects of the new tax legislation. However, we are currently evaluating the impact of the tax reform and the results of such evaluation will be recorded in our results of operations, financial position and cash flows in the reporting periods in which such provisions are effective.

Note 11. Commitments and Contingencies

Litigation and regulatory mattersThe Company is involved from time to time in claims, proceedings and litigation arising in the ordinary course of business. The Company has made accruals with respect to these matters, where appropriate, which are reflected in the unaudited interim condensed consolidated financial statements. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. The Company may enter into discussions regarding settlement of these matters and may enter into settlement agreements, if in the best interest of the Company. From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. There are no pending significant legal proceedings to which the Company is a party for which management believes the ultimate outcome would have a material adverse effect on the Company’s financial position.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

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