Savers Value Village, Inc.SVV
Savers Value Village, Inc. Fair Value Disclosure
Fair Value Measurements
The Company utilizes fair value measurements for its financial assets and financial liabilities and fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is based upon a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
•Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
•Level 2 inputs are inputs other than unadjusted quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
•Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement.
Recurring fair value measurements
The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at January 3, 2026:
| (in thousands) | Fair Value Hierarchy | Total | |||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Money market funds | $ | 23,136 | $ | — | $ | — | $ | 23,136 | |||||||||||||||
| Interest rate swaps | — | 42 | — | 42 | |||||||||||||||||||
| Cross currency swaps | — | 1,617 | — | 1,617 | |||||||||||||||||||
Marketable securities (1) | 2,594 | — | — | 2,594 | |||||||||||||||||||
| Total | $ | 25,730 | $ | 1,659 | $ | — | $ | 27,389 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Interest rate swaps | $ | — | $ | 1,181 | $ | — | $ | 1,181 | |||||||||||||||
| Cross currency swaps | — | 2,363 | — | 2,363 | |||||||||||||||||||
| Forward contracts | — | 349 | — | 349 | |||||||||||||||||||
| Total | $ | — | $ | 3,893 | $ | — | $ | 3,893 | |||||||||||||||
(1)Represents investments held in a rabbi trust associated with the Company’s deferred compensation plan and are included in prepaid expenses and other current assets and other assets on the Consolidated Balance Sheets.
The following table presents financial assets and financial liabilities that are measured at fair value on a recurring basis at December 28, 2024:
| (in thousands) | Fair Value Hierarchy | Total | |||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Money market funds | $ | 57,000 | $ | — | $ | — | $ | 57,000 | |||||||||||||||
| Forward contracts | — | 4,574 | — | 4,574 | |||||||||||||||||||
| Total | $ | 57,000 | $ | 4,574 | $ | — | $ | 61,574 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Acquisition-related contingent consideration | $ | — | $ | — | $ | 2,000 | $ | 2,000 | |||||||||||||||
There were no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3 for fiscal 2025 or fiscal 2024.
Money market funds, consisting of short-term deposits with an original maturity of three months or less, are valued based on quoted market prices of identical assets and are classified within Level 1. Marketable securities are deferred compensation investments measured at fair value using unadjusted quoted market prices available from national securities exchanges and are classified within Level 1.
Forward contracts, cross currency swaps and interest rate swaps are fair valued using independent valuation services, and the valuations are based on observable market data. As such, the forward contracts, cross currency swaps and interest rate swaps are classified within Level 2. The Company reviews the independent valuation and obtains an understanding of the methods used in pricing the instruments.
The fair value of the acquisition-related contingent consideration liability is measured using the probability-weighted present value of the potential payment. The probability-weighted present value of the potential payment is based on significant unobservable inputs, including management estimates and assumptions. Accordingly, the fair value of the acquisition-related contingent consideration has been classified as Level 3. In September 2025, the Company paid $0.7 million to settle the 2 Peaches acquisition-related contingent consideration obligation in full.
The 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 | |||
| (1,300) | |||||
| Cash payment | (700) | ||||
| Balance at January 3, 2026 | $ | — | |||
Non-recurring fair value measurements
The Company’s non-financial assets, such as goodwill, intangible assets, property and equipment, and ROU lease assets, are recorded at cost. Fair value adjustments are made to these non-financial assets in the period an impairment charge is recognized. In fiscal 2025 and 2024, the Company recognized impairment charges of $2.8 million and $2.5 million, respectively, on ROU lease assets and $1.2 million and $1.8 million, respectively, on property and equipment which are recorded in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. Fair value of these assets was determined using discounted cash flow models based on significant unobservable inputs, including projected store-level cash flows, discount rates and market rental data. Accordingly, the fair value of these assets are classified as Level 3 within the fair value hierarchy.
Other fair value disclosures
The fair value of borrowings under the Company’s 2025 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 January 3, 2026. The Company’s Notes were fully redeemed on September 18, 2025. The fair value of the Company’s Notes, based on Level 1 inputs, was $467.6 million at December 28, 2024. The fair value of borrowings under the Company’s 2021 Senior Secured Credit Facilities approximated their carrying value and were based on rate notices provided by the Administrative Agent (Level 2 inputs) at December 28, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Mar 8, 2024 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.