Fair Value Measurements

9 Months Ended

Oct. 31, 2024

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 October 31, 2024 and 2023 and January 31, 2024 (in thousands):

		Fair Value at October 31, 2024
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	278	$	—	$	—	$	278
Short-term investment	Other current assets		149		—		—		149
SERP assets - employer	Other non-current assets		737		—		—		737
SERP assets - employee	Other non-current assets		53,869		—		—		53,869
Defined benefit plan assets	Other non-current liabilities		—		—		35,524		35,524
Hedge derivatives	Other current assets		—		373		—		373
Total		$	55,033	$	373	$	35,524	$	90,930
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	53,869	$	—	$	—	$	53,869
Hedge derivatives	Accrued liabilities		—		77		—		77
Total		$	53,869	$	77	$	—	$	53,946

		Fair Value at January 31, 2024
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	246	$	—	$	—	$	246
Short-term investment	Other current assets		155		—		—		155
SERP assets - employer	Other non-current assets		510		—		—		510
SERP assets - employee	Other non-current assets		48,800		—		—		48,800
Defined benefit plan assets	Other non-current liabilities		—		—		33,731		33,731
Hedge derivatives	Other current assets		—		554		—		554
Total		$	49,711	$	554	$	33,731	$	83,996
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	48,800	$	—	$	—	$	48,800
Hedge derivatives	Accrued liabilities		—		11		—		11
Total		$	48,800	$	11	$	—	$	48,811

		Fair Value at October 31, 2023
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities	Other current assets	$	213	$	—	$	—	$	213
Short-term investment	Other current assets		150		—		—		150
SERP assets - employer	Other non-current assets		591		—		—		591
SERP assets - employee	Other non-current assets		45,534		—		—		45,534
Defined benefit plan assets	Other non-current liabilities		—		—		29,712		29,712
Hedge derivatives	Other current assets		—		—		—		—
Total		$	46,488	$	—	$	29,712	$	76,200
Liabilities:
SERP liabilities - employee	Other non-current liabilities	$	45,534	$	—	$	—	$	45,534
Hedge derivatives	Accrued liabilities		—		655		—		655
Total		$	45,534	$	655	$	—	$	46,189

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 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 defined benefit plan and included in other non-current liabilities in the Consolidated Balance Sheets at October 31, 2024, January 31, 2024, and October 31, 2023.

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 2024, the Company invested approximately $8.4 million and during the first nine months of fiscal 2025, the Company invested an additional $5.5 million in venture capital funds. The Company has evaluated and will regularly evaluate the carrying value of its investments. One consumer products company in which the Company made an equity investment in fiscal year 2022 sold its business and assets in the first quarter of fiscal 2024 in a transaction that yielded little return for equity holders. As a result, the Company fully impaired its $0.5 million investment in this entity in the first quarter of fiscal 2024, and the impairment is recorded in Other income, net in the Consolidated Statements of Operations. The carrying value of the investments are recorded in Other non-current assets in the Consolidated Balance Sheets at October 31, 2024, January 31, 2024 and October 31, 2023.