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Fair Value Measurements
 9 Months Ended
Nov. 02, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5 - Fair Value Measurements

Financial Instruments

The following table presents financial instruments that are measured at fair value on a recurring basis at November 2, 2024, February 3, 2024 and October 28, 2023:

 

 

 

Fair Value Measurements

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

As of November 2, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents - money market mutual funds

 

$

65,529

 

 

$

0

 

 

$

0

 

 

$

65,529

 

Marketable securities - mutual funds that fund
    deferred compensation

 

 

13,866

 

 

 

0

 

 

 

0

 

 

 

13,866

 

Total

 

$

79,395

 

 

$

0

 

 

$

0

 

 

$

79,395

 

As of February 3, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents - money market mutual funds

 

$

91,733

 

 

$

0

 

 

$

0

 

 

$

91,733

 

Marketable securities - mutual funds that fund
    deferred compensation

 

 

12,247

 

 

 

 

 

 

 

 

 

12,247

 

Total

 

$

103,980

 

 

$

0

 

 

$

0

 

 

$

103,980

 

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

 

 

 

 

 

 

 

 

 

11,226

 

Total

 

$

64,501

 

 

$

0

 

 

$

0

 

 

$

64,501

 

We invest 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 November 2, 2024, these Marketable Securities were principally invested in equity-based mutual funds, consistent with the allocation in our deferred compensation plan. 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. Changes in these Marketable Securities and deferred compensation plan liabilities are charged to Selling, General and Administrative Expenses.

Deferred Compensation Plan Liabilities and Related Marketable Securities

The following tables present the balances and activity of the Company’s deferred compensation plan liabilities and related Marketable Securities:

 

(In thousands)

 

November 2, 2024

 

 

February 3, 2024

 

 

October 28, 2023

 

Deferred compensation plan current liabilities

 

$

193

 

 

$

114

 

 

$

1,619

 

Deferred compensation plan long-term liabilities

 

 

13,449

 

 

 

11,639

 

 

 

9,770

 

Total deferred compensation plan liabilities

 

$

13,642

 

 

$

11,753

 

 

$

11,389

 

Marketable securities - mutual funds that fund deferred compensation

 

$

13,866

 

 

$

12,247

 

 

$

11,226

 

 

(In thousands)

 

Thirteen
Weeks Ended
 November 2, 2024

 

 

Thirteen
Weeks Ended
 October 28, 2023

 

 

Thirty-nine
Weeks Ended
 November 2, 2024

 

 

Thirty-nine
Weeks Ended
 October 28, 2023

 

Deferred compensation liabilities

 

 

 

 

 

 

 

 

 

 

 

 

   Employer contributions, net

 

$

83

 

 

$

62

 

 

$

234

 

 

$

233

 

   Investment earnings (losses)

 

 

632

 

 

 

(1,031

)

 

 

1,214

 

 

 

(375

)

Marketable Securities

 

 

 

 

 

 

 

 

 

 

 

 

Mark-to-market (gains) losses (1)

 

 

(585

)

 

 

993

 

 

 

(1,169

)

 

 

376

 

Net deferred compensation expense

 

$

130

 

 

$

24

 

 

$

279

 

 

$

234

 

(1) Included in the mark-to-market activity related to equity securities still held at quarter-end, we recognized an unrealized gain of $568,000 and an unrealized loss of $919,000 for the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively, and unrealized gains of $1,118,000 and $141,000 for the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively.

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 and Operating Lease Right-of-Use Assets, net of 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 thirty-nine weeks ended November 2, 2024 or the thirty-nine weeks ended October 28, 2023.