| Fair Value Measurements |
4. Fair
Value Measurements
The Financial Accounting Standards
Board defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most
advantageous market in an orderly transaction between market participants at the measurement date. The guidance establishes a three level
fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of the hierarchy are defined as follows:
Level 1 – Inputs are unadjusted quoted prices
in active markets for identical assets or liabilities that the Plan has the ability to access at the measurement date.
Level 2 – Observable inputs other than quoted
prices included in Level 1, including quoted prices for identical assets or liabilities in inactive markets, quoted prices for similar
assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived
principally from or corroborated by observable market data.
Level 3 – Unobservable
inputs reflecting the Plan’s own assumptions about the inputs that market participants would use in pricing the asset or liability
based on the best information available.
If the inputs used to measure
the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is
significant to the fair value measurement of the instrument. There were no transfers between levels in the years ended December 31, 2025
or 2024. The following tables set forth the financial assets of the Plan by
level within the fair value hierarchy, as of December 31, 2025 and 2024:
| | |
| | |
Fair Value Measurements at | |
| | |
| | |
December 31, 2025 | |
| Asset Category | |
Total | | |
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1) | | |
Significant
Observable
Inputs
(Level 2) | | |
Significant
Unobservable
Inputs
(Level 3) | |
| | |
| | |
| | |
| | |
| |
| PVH Corp. common stock(1) | |
$ | 63,649 | | |
$ | 63,649 | | |
$ | - | | |
$ | - | |
| Mutual funds(2) | |
| 1,213,287 | | |
| 1,213,287 | | |
| - | | |
| - | |
| Common collective trust funds(3) | |
| 83,984 | | |
| - | | |
| 83,984 | | |
| - | |
| Total investments in the fair value hierarchy | |
| 1,360,920 | | |
$ | 1,276,936 | | |
$ | 83,984 | | |
$ | - | |
| Galliard stable value fund at NAV(4) | |
| 145,202 | | |
| | | |
| | | |
| | |
| Total investments at fair value | |
$ | 1,506,122 | | |
| | | |
| | | |
| | |
| | |
| | |
Fair Value Measurements at | |
| | |
| | |
December 31, 2024 | |
| Asset Category | |
Total | | |
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1) | | |
Significant
Observable
Inputs
(Level 2) | | |
Significant
Unobservable
Inputs
(Level 3) | |
| | |
| | |
| | |
| | |
| |
| PVH Corp. common stock(1) | |
$ | 94,209 | | |
$ | 94,209 | | |
$ | - | | |
$ | - | |
| Mutual funds(2) | |
| 936,536 | | |
| 936,536 | | |
| - | | |
| - | |
| Common collective trust funds(3) | |
| 66,965 | | |
| - | | |
| 66,965 | | |
| - | |
| Total investments in the fair value hierarchy | |
| 1,097,710 | | |
$ | 1,030,745 | | |
$ | 66,965 | | |
$ | - | |
| Galliard stable value fund at NAV(4) | |
| 135,270 | | |
| | | |
| | | |
| | |
| Total investments at fair value | |
$ | 1,232,980 | | |
| | | |
| | | |
| | |
| (1) | Valued at the closing price of PVH Corp. common stock as
determined by the closing price in the active market in which the securities are traded. |
| (2) | Valued at the net asset value (“NAV”) of the
fund, as determined by the closing price in the active market in which the individual fund is traded. |
| (3) | Valued at the NAV of the fund as determined and published
daily by the fund family. Fund is redeemable on a daily basis at the NAV without restriction. |
| (4) | Valued at the NAV of units of the Galliard Stable Return Fund E (“Fund
E”), a collective trust fund which invests all of its assets in Galliard Stable Return Fund Core. Galliard Stable Return Fund Core
invests in fully benefits-responsive investment contracts. The net asset value of Fund E is used as a practical expedient to estimate
its fair value. This practical expedient would not be used if it is determined to be probable that the fund will sell the investment for
an amount different from the reported net asset value. Participant transactions (purchases and sales) may occur daily unless payments
are being delayed to all fund unit holders. If the Plan initiates a full redemption of the collective trust fund, the issuer reserves
the right to require 12 months’ notification in order to ensure that securities’ liquidations will be carried out in an orderly
business manner. |
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