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Fair Value Measurements (Tables)

3 Months Ended

May 04, 2024

Fair Value Disclosures [Abstract]

Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis

The following presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):

						Fair Value Measurements																								Fair Value Measurements
						at May 4, 2024																								at Feb 3, 2024
Recurring Fair Value Measures						Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3						Total
Assets:
Foreign exchange currency contracts						$	—					$	3,260					$	—					$	3,260					$	—					$	2,278					$	—					$	2,278
2028 Bond Hedge						—						—						138,269						138,269						—						—						85,918						85,918
Interest rate swap						—						835						—						835						—						797						—						797
Total						$	—					$	4,095					$	138,269					$	142,364					$	—					$	3,075					$	85,918					$	88,993
Liabilities:
Foreign exchange currency contracts						$	—					$	398					$	—					$	398					$	—					$	1,702					$	—					$	1,702
Embedded derivative						—						—						30,230						30,230						—						—						16,390						16,390
Deferred compensation obligations						—						18,023						—						18,023						—						17,164						—						17,164
Total						$	—					$	18,421					$	30,230					$	48,651					$	—					$	18,866					$	16,390					$	35,256

Schedule of measurement input assumptions

The following assumptions were used within the model:

Valuation Assumptions						May 4, 2024						Feb 3, 2024
Expected volatility						30		%				30		%
Risk-free interest rate						4.6		%				4.1		%
Credit spread						1.4		%				4.3		%
Dividend yield						4.5		%				5.2		%
Term to maturity						4.0 years						4.2 years
Stock price						$	26.71					$	22.86

Reconciliation of Level 3 assets and liabilities

The following presents a reconciliation of the Company’s financial assets and liabilities measured at fair value as of May 4, 2024, using significant unobservable inputs (Level 3), and the change in fair value recorded in other income (expense), net in the consolidated statements of income (loss) (in thousands):

			Embedded Derivative						2028 Bond Hedge
Balance as of February 3, 2024			$	(16,390)					$	85,918
Initial bifurcation of embedded derivative			(6,538)						—
Purchase of Additional 2028 Bond Hedge			—						6,538
Gain (loss) on fair value remeasurement			(7,302)						45,813
Balance as of May 4, 2024			$	(30,230)					$	138,269

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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- Definition

Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

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- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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