Chefs' Warehouse, Inc.CHEF

Chefs' Warehouse, Inc. Commitments Disclosure

10-KFiled Feb 24, 20262 min read
Commitments and Contingencies
 
 Legal Contingencies
 
The Company is involved in various legal proceedings. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where the Company believes an unfavorable outcome is reasonably
possible and/or for which no estimate of possible losses can be made. The Company does not believe that there is a reasonable possibility of material loss or loss in excess of the amount that the Company has accrued. The Company recognizes legal fees related to any ongoing legal proceeding as incurred.

Audits
 
The Company is involved in various matters, with respect to some of which the outcome is uncertain. These audits may result in the assessment of additional taxes or other costs that are subsequently resolved with authorities or potentially through the courts.

Risk Management Programs
 
The Company’s self-insurance reserves for its medical program totaled $2,578 and $2,540 at December 26, 2025 and December 27, 2024, respectively.
 
The Company’s self-insurance reserves for its automobile liability program totaled $11,622 and $8,833 at December 26, 2025 and December 27, 2024, respectively. Self-insurance reserves for workers’ compensation totaled $21,808 and $16,888 at December 26, 2025 and December 27, 2024, respectively. These self-insurance reserves are reflected within accrued liabilities on the Company’s consolidated balance sheets.
 
Workforce

As of December 26, 2025, approximately 1% of the Company’s employees are represented by unions, all of whom are operating under collective bargaining agreements which expire at various times between fiscal 2027 and 2028.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Feb 22, 2022
2020Feb 23, 2021
2019Feb 24, 2020
2018Mar 1, 2019
2017Mar 9, 2018
2016Mar 10, 2017
2015Mar 4, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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