v3.25.2
Financial Instruments
 6 Months Ended
Aug. 03, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

Level 1-Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2-Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3-Valuations based on unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

Cash equivalents are carried at cost, which approximates fair value and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

Specific to marketable fixed income securities, the Company did not record any gross unrealized gains and losses as fair value approximates amortized cost. The Company did not record any credit losses during the thirteen and twenty-six weeks ended August 3, 2025. Further, as of August 3, 2025, the Company did not record an allowance for credit losses related to its fixed income securities.
Vested equity warrants and equity investments in public companies that have readily determinable fair values are carried at fair value and are classified as marketable securities within Level 1 because they are valued using quoted market prices.

Marketable securities are included in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets, are carried at fair value, and are classified within Level 1 because they are valued using quoted market prices.

Unvested equity warrants are classified within Level 3 of the fair value hierarchy as they are valued based on observable and unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. The Company utilized certain valuation techniques, such as the Black-Scholes option-pricing model and the Monte Carlo simulation model, to determine the fair value of unvested equity warrants. The application of these models requires the use of a number of complex assumptions based on unobservable inputs, including the expected term, expected equity volatility, discounts for lack of marketability, cash flow projections, and probability with respect to vesting requirements. Equity warrants are transferred from Level 3 to Level 1 of the fair value hierarchy upon vesting as they are no longer valued based on unobservable inputs.

The following table includes a summary of financial instruments measured at fair value as of August 3, 2025 (in millions):

Level 1Level 2Level 3
Cash$492.8 $— $— 
U.S. Treasury securities99.0 — — 
Cash and cash equivalents591.8 — — 
Equity investments1.2 — — 
Marketable securities1.2 — — 
Total financial instruments$593.0 $— $— 

The following table includes a summary of financial instruments measured at fair value as of February 2, 2025 (in millions):

Level 1Level 2Level 3
Cash$595.8 $— $— 
Cash and cash equivalents595.8 — — 
Equity investments0.9 — — 
Marketable securities0.9 — — 
Unvested equity warrants——4.9 
Total financial instruments$596.7 $— $4.9 
The following table summarizes the change in fair value for financial instruments using unobservable Level 3 inputs (in millions):
26 Weeks Ended
August 3, 2025July 28, 2024
Beginning balance$4.9 $2.2 
Equity warrants terminated
(4.9)— 
Change in fair value of unvested equity warrants— 4.0 
Equity warrants vested— (3.2)
Ending balance$— $3.0 

As of February 2, 2025, the deferred credit subject to vesting and performance requirements recognized within other long-term liabilities in exchange for the equity warrants was $4.5 million. Level 3 significant unobservable inputs used in the fair value measurement of unvested equity warrants included probability of vesting and equity volatility, and reflected a weighted average of 0% and 56% as of August 3, 2025, respectively.