Fair Value Measurements

9 Months Ended

Oct. 28, 2023

Note 3 - Fair Value Measurements

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


	Fair Value Measurements
(In thousands)	Level 1		Level 2		Level 3		Total
As of October 28, 2023
Cash equivalents - money market mutual funds	$	53,275	$	0	$	0	$	53,275
Marketable securities - mutual funds that fund deferred compensation		11,226		0		0		11,226
Total	$	64,501	$	0	$	0	$	64,501
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						11,601
Total	$	56,866	$	0	$	0	$	56,866
As of October 29, 2022
Cash equivalents - money market mutual funds	$	28,502	$	0	$	0	$	28,502
Marketable securities - mutual funds that fund deferred compensation		10,353						10,353
Total	$	38,855	$	0	$	0	$	38,855

We invest in publicly traded mutual funds with readily determinable fair values. These Marketable Securities are designed to mitigate volatility in our Condensed Consolidated Statements of Income associated with our non-qualified deferred compensation plan. As of October 28, 2023, these Marketable Securities were principally invested in equity-based mutual funds, consistent with the allocation in our deferred compensation plan. As of October 28, 2023, the balance in our deferred compensation plan was $11.4 million, of which $1.6 million was in Accrued and Other Liabilities based on scheduled payments due within the next 12 months and the remaining balance was in Deferred Compensation, a long-term liability. To the extent there is a variation in invested funds compared to the total non-qualified deferred compensation plan liability, such fund variance is managed through 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 $2.7 million, $2.9 million and $3.2 million related to equity securities still held at October 28, 2023, January 28, 2023 and October 29, 2022, respectively. For the thirteen and thirty-nine weeks ended October 28, 2023, we have recognized unrealized losses of $919,000 and unrealized gains of $141,000, respectively, related to equity securities still held at October 28, 2023. For the thirteen and thirty-nine weeks ended October 29, 2022, we have recognized unrealized losses of $647,000 and $1.1 million, respectively, related to equity securities still held at October 29, 2022.

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

Long-Lived Asset Impairment Testing

We periodically evaluate our long-lived assets for impairment if events or circumstances indicate that the carrying value may not be recoverable. The carrying value of long-lived assets is considered impaired when the carrying value of the assets exceeds the expected future cash flows to be derived from their use. Assets are grouped, and the evaluation is performed, at the lowest level for which there are identifiable cash flows, which is generally at a store level. Store level asset groupings typically include Property and Equipment, Operating Lease Right-of-Use Assets, and the current and long-term portions of operating lease liabilities. Assets subject to impairment are adjusted to estimated fair value and, if applicable, an impairment loss is recorded in Selling, General and Administrative Expenses. If the Operating Lease Right-of-Use Asset is impaired, we would amortize the remaining right-of-use asset on a straight-line basis over

the remaining lease term. No impairment charges were recorded during the thirteen and thirty-nine weeks ended October 28, 2023 or the thirteen and thirty-nine weeks ended October 29, 2022.

- 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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