Company: SVV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001883313-25-000066
Chunk: 27

Company: Savers Value Village, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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Acquisition-Related Contingent Consideration LiabilityValuation TechniqueUnobservable InputsRangePotential paymentProbability-weighted present valueProbability of payment0% - 100%Discount rate9.6%Projected years of payments2026 - 2027The following table provides a reconciliation of the acquisition-related contingent consideration liability measured at fair value using Level 3 significant unobservable inputs:(in thousands)Balance at December 28, 2024$2,000 Change in fair value recorded in selling, general and administrative(326)Balance at March 29, 20251,674 Change in fair value recorded in selling, general and administrative(886)Balance at June 28, 2025$788 Other fair value disclosuresThe fair value of the Company’s Senior Secured Notes, based on Level 1 inputs, was $421.0 million and $467.6 million at June 28, 2025 and December 28, 2024, respectively. The fair value of borrowings under the Company’s Senior Secured Credit Facilities approximate their carrying value as the current rates approximate rates on similar debt and were based on rate notices provided by the Administrative Agent (Level 2 inputs) at June 28, 2025 and December 28, 2024.

Note 6. Derivative Financial Instruments

As a result of its operating and financing activities, the Company is exposed to market risks from changes in foreign currency exchange rates and interest rates. These market risks may adversely affect the Company’s operating results, cash flows and financial position. The Company seeks to manage risk from changes in foreign currency exchange rates through the use of forward contracts or cross currency swaps or both, and from time to time, may use interest rate swaps to manage the risk of changes in interest rates. The Company’s forward contracts are not collateralized and are entered into with large, reputable financial institutions that are monitored for counterparty risk. Refer to Note 5. Fair Value Measurements for information on the fair value of our derivative financial instruments. 

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Foreign currency contractsThe Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company uses forward contracts to manage its exposure to fluctuations in the U.S. dollar (“USD”) – Canadian dollar (“CAD”) and may also use cross currency swaps for the same reason. Forward contracts lock in the exchange rate for a portion of the estimated cash flows of the Company’s Canadian operations. As of June 28, 2025 and December