v3.26.1
Fair Value Measurements
 6 Months Ended
Jul. 31, 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Fair Value Measurements

NOTE 8 – FAIR VALUE MEASUREMENTS

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. Accounting guidance establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value into three broad levels as follows:

•
Level 1 – Quoted prices in active markets for identical assets or liabilities.
•
Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
•
Level 3 – Unobservable inputs based on the Company’s assumptions.

The guidance requires the use of observable market data if such data is available without undue cost and effort.

The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of July 31, 2026 and 2025 and January 31, 2026 (in thousands):

 

 

 

 

 

Fair Value at July 31, 2026

 

 

 

Balance Sheet Location

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Other current assets

 

$

341

 

 

$

—

 

 

$

—

 

 

$

341

 

Short-term investment

 

Other current assets

 

 

148

 

 

 

—

 

 

 

—

 

 

 

148

 

SERP assets - employer

 

Other non-current assets

 

 

713

 

 

 

—

 

 

 

—

 

 

 

713

 

SERP assets - employee

 

Other non-current assets

 

 

57,524

 

 

 

—

 

 

 

—

 

 

 

57,524

 

Defined benefit plan assets

 

Other non-current liabilities

 

 

—

 

 

 

—

 

 

 

38,665

 

 

 

38,665

 

Hedge derivatives

 

Other current assets

 

 

—

 

 

 

87

 

 

 

—

 

 

 

87

 

Total

 

 

 

$

58,726

 

 

$

87

 

 

$

38,665

 

 

$

97,478

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SERP liabilities - employee

 

Other non-current liabilities

 

$

57,524

 

 

$

—

 

 

$

—

 

 

$

57,524

 

Hedge derivatives

 

Accrued liabilities

 

 

—

 

 

 

145

 

 

 

—

 

 

 

145

 

Total

 

 

 

$

57,524

 

 

$

145

 

 

$

—

 

 

$

57,669

 

 

 

 

 

 

Fair Value at January 31, 2026

 

 

 

Balance Sheet Location

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Other current assets

 

$

281

 

 

$

—

 

 

$

—

 

 

$

281

 

Short-term investment

 

Other current assets

 

 

153

 

 

 

—

 

 

 

—

 

 

 

153

 

SERP assets - employer

 

Other non-current assets

 

 

607

 

 

 

—

 

 

 

—

 

 

 

607

 

SERP assets - employee

 

Other non-current assets

 

 

55,739

 

 

 

—

 

 

 

—

 

 

 

55,739

 

Defined benefit plan assets

 

Other non-current liabilities

 

 

—

 

 

 

—

 

 

 

40,045

 

 

 

40,045

 

Hedge derivatives

 

Other current assets

 

 

—

 

 

 

484

 

 

 

—

 

 

 

484

 

Total

 

 

 

$

56,780

 

 

$

484

 

 

$

40,045

 

 

$

97,309

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SERP liabilities - employee

 

Other non-current liabilities

 

$

55,739

 

 

$

—

 

 

$

—

 

 

$

55,739

 

Hedge derivatives

 

Accrued liabilities

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

Total

 

 

 

$

55,739

 

 

$

10

 

 

$

—

 

 

$

55,749

 

 

 

 

 

 

Fair Value at July 31, 2025

 

 

 

Balance Sheet Location

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Other current assets

 

$

268

 

 

$

—

 

 

$

—

 

 

$

268

 

Short-term investment

 

Other current assets

 

 

150

 

 

 

—

 

 

 

—

 

 

 

150

 

SERP assets - employer

 

Other non-current assets

 

 

724

 

 

 

—

 

 

 

—

 

 

 

724

 

SERP assets - employee

 

Other non-current assets

 

 

53,422

 

 

 

—

 

 

 

—

 

 

 

53,422

 

Defined benefit plan assets

 

Other non-current liabilities

 

 

—

 

 

 

—

 

 

 

35,616

 

 

 

35,616

 

Hedge derivatives

 

Other current assets

 

 

—

 

 

 

113

 

 

 

—

 

 

 

113

 

Total

 

 

 

$

54,564

 

 

$

113

 

 

$

35,616

 

 

$

90,293

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SERP liabilities - employee

 

Other non-current liabilities

 

$

53,422

 

 

$

—

 

 

$

—

 

 

$

53,422

 

Hedge derivatives

 

Accrued liabilities

 

 

—

 

 

 

979

 

 

 

—

 

 

 

979

 

Total

 

 

 

$

53,422

 

 

$

979

 

 

$

—

 

 

$

54,401

 

 

The fair values of the Company’s available-for-sale securities are based on quoted market prices. The fair value of the short-term investment, which is a guaranteed investment certificate, is based on its purchase price plus one half of one percent calculated annually. The assets related to the Company’s defined contribution supplemental executive retirement plan (“SERP”) consist of both employer (employee unvested) and employee assets which are invested in investment funds with fair values calculated based on quoted market prices. The SERP liability represents the Company’s liability to the employees in the plan for their vested balances. The hedge derivatives consist of cash flow hedging instruments and forward contracts (see Note 7 for further discussion) and are entered into by the Company principally to reduce its exposure to Swiss Franc and Euro exchange rate risks. Fair values of the Company’s hedge derivatives are calculated based on quoted foreign exchange rates and quoted interest rates.

 

The Company sponsors a defined benefit pension plan in Switzerland. The plan covers certain eligible employees and provides benefits based on years of service and compensation on a career-average pay basis. The assets within the plan are classified as Level 3 within the fair value hierarchy and consist primarily of investments in pooled funds, including separate employee accounts invested in equity securities, debt securities and real estate. The fair values of these investments are based on valuations provided by the fund administrators, which are not readily observable and cannot be corroborated by observable market data; accordingly, these investments are classified within Level 3 of the fair value hierarchy. The net funded status of the plan, which reflects the fair value of plan assets less the projected benefit obligation, is included in Other non-current liabilities in the Consolidated Balance Sheets at July 31, 2026, January 31, 2026, and July 31, 2025.

 

There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements.

 

Investments Without Readily Determinable Fair Values

From time to time the Company may make minority investments in growth companies in the consumer products sector and other sectors relevant to its business, including certain of the Company's suppliers and customers, as well as in venture capital funds that invest in companies in media, entertainment, information technology and technology-related fields and in digital assets. Through fiscal 2026, the Company invested approximately $17.5 million and during the first six months of fiscal 2027, the Company invested an additional $1.1 million in venture capital funds. During the three months ended July 31, 2025, the Company recorded a non-cash impairment charge of $0.4 million (recorded in Other income, net in the Consolidated Statements of Operations for the three and six months ended July 31, 2025) related to one of its investments in a venture capital fund in which the Company has a limited partnership interest. The write-down was a result of a decline in fair value primarily attributable to a deterioration in the financial condition and operating performance of certain of the underlying portfolio companies within the fund that was determined to be other than temporary. The Company will continue to regularly evaluate the carrying value of its investments. The carrying value of the investments is recorded in Other non-current assets in the Consolidated Balance Sheets at July 31, 2026, January 31, 2026 and July 31, 2025. These investments are carried at cost, less any related impairments, adjusted for observable price changes, if any, as fair values are not readily determinable. Other than the additional investments made during the six months ended July 31, 2026, there were no impairment charges or observable price changes related to these investments.