Fair Value Measurements

6 Months Ended

Jul. 31, 2022

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, 2022 and 2021 and January 31, 2022 (in thousands):

		Fair Value at July 31, 2022
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	230	$	—	$	—	$	230
Short-term investment	Other current assets		163		—		—		163
SERP assets - employer	Other non-current assets		830		—		—		830
SERP assets - employee	Other non-current assets		44,566		—		—		44,566
Defined benefit plan assets	Other non-current assets		—		—		27,357		27,357
Hedge derivatives	Other current assets		—		1,686		—		1,686
Total		$	45,789	$	1,686	$	27,357	$	74,832
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	44,566	$	—	$	—	$	44,566
Hedge derivatives	Accrued liabilities		—		263		—		263
Total		$	44,566	$	263	$	—	$	44,829

		Fair Value at January 31, 2022
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	249	$	—	$	—	$	249
Short-term investment	Other current assets		164		—		—		164
SERP assets - employer	Other non-current assets		772		—		—		772
SERP assets - employee	Other non-current assets		47,261		—		—		47,261
Defined benefit plan assets	Other non-current assets		—		—		29,096		29,096
Hedge derivatives	Other current assets		—		197		—		197
Total		$	48,446	$	197	$	29,096	$	77,739
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	47,261	$	—	$	—	$	47,261
Hedge derivatives	Accrued liabilities		—		170		—		170
Total		$	47,261	$	170	$	—	$	47,431

		Fair Value at July 31, 2021
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	218	$	—	$	—	$	218
Short-term investment	Other current assets		167		—		—		167
SERP assets - employer	Other non-current assets		882		—		—		882
SERP assets - employee	Other non-current assets		47,886		—		—		47,886
Defined benefit plan assets	Other non-current liabilities		—		—		28,057		28,057
Hedge derivatives	Other current assets		—		140		—		140
Total		$	49,153	$	140	$	28,057	$	77,350
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	47,886	$	—	$	—	$	47,886
Total		$	47,886	$	—	$	—	$	47,886

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 a 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 international employees and is based on years of service and compensation on a career-average pay basis. The assets within the plan are classified as a Level 3 asset within the fair value hierarchy and consist of an investment in pooled assets and include separate employee accounts that are invested in equity securities, debt securities and real estate. The values of the separate accounts invested are based on values provided by the administrator of the funds that cannot be readily derived from or corroborated by observable market data. The value of the assets is part of the funded status of the defined benefit plan and included in other non-current assets at July 31, 2022 and January 31, 2022 and other non-current liabilities in the consolidated balance sheets at July 31, 2021.

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. During fiscal 2022, the Company invested approximately $2.0 million and during the first six months of fiscal 2023, the Company invested an additional $2.3 million in venture capital funds (see Note 9 - Commitments and Contingencies for discussion of commitments made related to venture capital funds). The Company has and will regularly evaluate the carrying value of its investments. There were no adjustments to the original cost value during the three and six months ended July 31, 2022. The carrying value of the investments are recorded in Other non-current assets in the Consolidated Balance Sheets at July 31, 2022 and January 31, 2022.