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Defined Benefit Plans
 12 Months Ended
Feb. 01, 2025
Retirement Benefits [Abstract]  
Defined Benefit Plans Defined Benefit Plans
The Company maintains defined benefit plans for certain employees primarily in the U.S. and Switzerland. In accordance with authoritative guidance for defined benefit pension and other postretirement plans, an asset for a plan’s overfunded status or a liability for a plan’s underfunded status is recognized in the consolidated balance
sheets; plan assets and obligations that determine the plan’s funded status are measured as of the end of the Company’s fiscal year; and changes in the funded status of defined benefit postretirement plans are recognized in the year in which they occur. Such changes are reported in OCL as a separate component of stockholders’ equity.
The Company’s pension obligations and related costs are calculated using actuarial concepts within the authoritative guidance framework. The Company uses the corridor approach to amortize unrecognized actuarial gains or losses over the average remaining service life of active participants. The life expectancy, estimated retirement age, discount rate, estimated future compensation and expected return on plan assets are important elements of expense and/or liability measurement. These critical assumptions are evaluated annually which enables expected future payments for benefits to be stated at present value on the measurement date. If actual results are not consistent with actuarial assumptions, the amounts recognized for the defined benefit plans could change significantly.
Supplemental Executive Retirement Plan
On August 23, 2005, the Board of Directors of the Company adopted a Supplemental Executive Retirement Plan (“SERP”) which became effective January 1, 2006. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances.
As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies, if any, may vary depending on investment performance of the trust. The cash surrender values of the insurance policies were $63.8 million and $63.4 million as of February 1, 2025 and February 3, 2024, respectively, and were included in other assets in the Company’s consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains (losses) of $2.2 million, $1.1 million and $(5.7) million in other income (expense) during fiscal 2025, fiscal 2024 and fiscal 2023, respectively.
The Company assumed a discount rate of approximately 5.4% and 4.8% for the years ended February 1, 2025 and February 3, 2024, respectively, as part of the actuarial valuation performed to calculate the projected benefit obligation, based on the timing of cash flows expected to be made in the future to the participants, applied to high quality yield curves. The Company also considers recent updates to the mortality tables and mortality improvement scale published by the Society of Actuaries in developing its best estimate of the expected mortality rates for its plan participants.
Aggregate benefits projected to be paid in the next five fiscal years are approximately $1.9 million in fiscal 2026, $1.9 million in fiscal 2027, $1.9 million in fiscal 2028, $1.8 million in fiscal 2029 and $1.8 million in fiscal 2030. Aggregate benefits projected to be paid in the five fiscal years following fiscal 2030 amount to $17.1 million.
Foreign Pension Plans
In certain foreign jurisdictions, primarily in Switzerland, the Company is required to guarantee the returns on Company-sponsored defined contribution plans in accordance with local regulations. These plans are typically government-mandated defined contribution plans that provide employees with a minimum investment return, and as such, are treated under pension accounting in accordance with authoritative guidance. The minimum investment return for our Swiss pension plan was 1.3% during calendar 2024 and 1.0% during calendar 2023. Under the Swiss pension plan, both the Company and certain of its employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. The Company’s contributions must be made in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender.
As of February 1, 2025 and February 3, 2024, actuarial assumptions used by the Company to calculate the projected benefit obligation and the fair value of the plans assets related to its Swiss pension plan included discount rates of 0.80% and 1.60%, respectively, and expected returns on plan assets of 1.25% and 1.60%, respectively.
The components of net periodic defined benefit pension cost to AOCL related to the Company’s defined benefit plans are as follows (in thousands):
SERPForeign Pension PlansTotal
Year Ended February 1, 2025
Service cost$— $4,264 $4,264 
Interest cost1,765 1,009 2,774 
Expected return on plan assets— (865)(865)
Net amortization of unrecognized prior service credit— (161)(161)
Net amortization of actuarial (gain) loss(174)162 (12)
Net periodic defined benefit pension cost$1,591 $4,409 $6,000 
Unrecognized prior service credit charged to comprehensive income (loss)$— $(161)$(161)
Unrecognized net actuarial gain (loss) charged to comprehensive income (loss)(174)162 (12)
Net actuarial gain (loss)3,837 (5,332)(1,495)
Foreign currency and other adjustments— 465 465 
Related tax impact(845)749 (96)
Total periodic defined benefit pension cost and other charges to OCL and AOCL$2,818 $(4,117)$(1,299)
Year Ended February 3, 2024
Service cost$— $3,731 $3,731 
Interest cost1,862 913 2,775 
Expected return on plan assets— (809)(809)
Net amortization of unrecognized prior service credit— (160)(160)
Net amortization of actuarial loss— 256 256 
Net periodic defined benefit pension cost$1,862 $3,931 $5,793 
Unrecognized prior service credit charged to comprehensive income (loss)$— $(160)$(160)
Unrecognized net actuarial loss charged to comprehensive income (loss)— 256 256 
Net actuarial gain (loss)4,388 (563)3,825 
Foreign currency and other adjustments— (361)(361)
Related tax impact(1,014)424 (590)
Total periodic defined benefit pension cost and other charges to OCL and AOCL$3,374 $(404)$2,970 
SERPForeign Pension PlansTotal
Year Ended January 28, 2023
Service cost$— $3,008 $3,008 
Interest cost1,333 221 1,554 
Expected return on plan assets— (271)(271)
Net amortization of unrecognized prior service credit— (90)(90)
Net amortization of actuarial loss17 598 615 
Net periodic defined benefit pension cost$1,350 $3,466 $4,816 
Unrecognized prior service credit charged to comprehensive income (loss)$— $(90)$(90)
Unrecognized net actuarial loss charged to comprehensive income (loss)17 598 615 
Net actuarial gain (loss)6,649 (2,759)3,890 
Foreign currency and other adjustments— 627 627 
Related tax impact(1,547)152 (1,395)
Total periodic defined benefit pension cost and other charges to OCL and AOCL$5,119 $(1,472)$3,647 
The amounts included in AOCL, before income tax, that have not yet been recognized in net periodic defined benefit pension cost are as follows (in thousands):
Feb 1, 2025Feb 3, 2024
SERPForeign Pension PlansTotalSERPForeign Pension PlansTotal
Unrecognized prior service credit$— $(52)$(52)$— $(67)$(67)
Unrecognized net actuarial (gain) loss(10,215)9,632 (583)(6,544)4,737 (1,807)
Total included in AOCL$(10,215)$9,580 $(635)$(6,544)$4,670 $(1,874)
The funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s consolidated balance sheets are summarized as follows (in thousands):
Feb 1, 2025Feb 3, 2024
SERPForeign Pension PlansTotalSERPForeign Pension PlansTotal
Projected benefit obligation$(33,751)$(65,253)$(99,004)$(37,730)$(56,260)$(93,990)
Plan assets at fair value1
— 53,479 53,479 — 49,433 49,433 
Net liability2
$(33,751)$(11,774)$(45,525)$(37,730)$(6,827)$(44,557)
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1The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table above does not include the insurance policies with cash surrender values of $63.8 million and $63.4 million as of February 1, 2025 and February 3, 2024, respectively.
2The net liability was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments.
A reconciliation of the changes in the projected benefit obligation is as follows (in thousands):
 SERPForeign Pension PlansTotal
Balance at January 28, 2023$42,367 $47,366 $89,733 
Service cost— 3,731 3,731 
Interest cost1,862 913 2,775 
Actuarial gains(4,395)(750)(5,145)
Contributions by plan participants— 4,549 4,549 
Payments(2,066)(2,062)(4,128)
Foreign currency and other adjustments(38)2,513 2,475 
Balance at February 3, 2024$37,730 $56,260 $93,990 
Service cost— 4,264 4,264 
Interest cost1,765 1,009 2,774 
Actuarial (gains) losses(3,837)4,563 726 
Contributions by plan participants— 5,345 5,345 
Payments(1,907)(3,311)(5,218)
Foreign currency and other adjustments— (2,877)(2,877)
Balance at February 1, 2025$33,751 $65,253 $99,004 
The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table below does not include the insurance policies with cash surrender values of $63.8 million and $63.4 million as of February 1, 2025 and February 3, 2024, respectively. A reconciliation of the changes in plan assets for the Company’s foreign pension plans is as follows (in thousands):
 Plan Assets
Balance at January 28, 2023$41,193 
Actual return on plan assets(504)
Contributions by employer4,144 
Contributions by plan participants4,549 
Payments(2,062)
Foreign currency and other adjustments2,113 
Balance at February 3, 2024$49,433 
Actual return on plan assets98 
Contributions by employer4,562 
Contributions by plan participants5,345 
Payments(3,311)
Foreign currency and other adjustments(2,648)
Balance at February 1, 2025$53,479