Company: SVV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001883313-25-000066
Chunk: 73

Company: Savers Value Village, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 Canadian operations. As of June 28, 2025 and December 28, 2024, the Company’s forward contracts had USD equivalent notional amounts of $105.4 million and $102.5 million, respectively. In April 2024, the Company terminated its cross currency swaps, resulting in net proceeds of $28.1 million. These cross currency swaps were not designated in hedging relationships.Interest rate swap contractsThe Company’s market risk is 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 have been amortized to interest expense, net 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 LocationJune 28, 2025December 28, 2024Forward contracts not designated as hedging instrumentsDerivative asset – current$24 $4,574 Forward contracts not designated as hedging instrumentsAccounts payable and accrued liabilities$1,881 $— The impact of derivative financial instruments on the unaudited interim Condensed Consolidated Statements of Operations and Comprehensive Income was as follows:Thirteen Weeks EndedTwenty-Six Weeks Ended(in thousands)June 28, 2025June 29, 2024June 28, 2025June 29, 2024Loss (gain) on forward contracts recognized in (gain) loss on foreign currency, net$4,248 $(189)$4,593 $(460)Gain on cross currency swaps recognized in (gain) loss on foreign currency, net$— $(2,033)$— $(7,647)Gain on interest rate swaps recognized in interest expense,