Fair Value of Financial Instruments

12 Months Ended

Jan. 28, 2023

Note 4 – Fair Value of Financial Instruments

The following table presents financial instruments that are measured at fair value on a recurring basis at January 28, 2023 and January 29, 2022:


	Fair Value Measurements
(In thousands)	Level 1		Level 2		Level 3		Total
As of January 28, 2023:
Cash equivalents – money market mutual funds	$	45,265	$	0	$	0	$	45,265
Marketable securities - mutual funds that fund deferred compensation		11,601		0		0		11,601
Total	$	56,866	$	0	$	0	$	56,866

As of January 29, 2022:
Cash equivalents – money market mutual funds	$	115,528	$	0	$	0	$	115,528
Marketable securities - mutual funds that fund deferred compensation		14,961		0		0		14,961
Total	$	130,489	$	0	$	0	$	130,489

During Fiscal 2021, we invested in publicly traded mutual funds with readily determinable fair values. These Marketable Securities are designed to mitigate volatility in our Consolidated Statements of Income associated with our non-qualified deferred compensation plan. As of January 28, 2023, these Marketable Securities were principally invested in equity-based mutual funds, consistent with the allocation in our deferred compensation plan. As of January 28, 2023, the balance in our deferred compensation plan was $11.3 million, of which $1.5 million was in Accrued and Other Liabilities based on scheduled payments due within the next 12 months and $9.8 million was in Deferred compensation, a long-term liability. To the extent there are funds in excess of the total non-qualified deferred compensation plan liability, such funds are invested in a stable value mutual fund. We classify these Marketable Securities as current assets because we have the ability to convert the securities into cash at our discretion and these marketable securities are not held in a rabbi trust. We have recognized cumulative unrealized losses of $2.9 million related to equity securities still held at January 28, 2023.

The fair values of Cash and Cash Equivalents, Accounts Receivable, Accounts Payable, Accrued Expenses and Other Current Liabilities approximate their carrying values because of their short-term nature.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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