Burlington Stores, Inc. Fair Value Disclosure
13. Fair Value of Financial Instruments
The Company accounts for fair value measurements in accordance with Topic No. 820 which defines fair value, establishes a framework for measurement and expands disclosure about fair value measurements. Topic No. 820 defines fair value 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 (exit price), and classifies the inputs used to measure fair value into the following hierarchy:
Level 1: |
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Quoted prices for identical assets or liabilities in active markets. |
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Level 2: |
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Quoted market prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
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Level 3: |
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Pricing inputs that are unobservable for the assets and liabilities, and include situations where there is little, if any, market activity for the assets and liabilities. |
The inputs into the determination of fair value require significant management judgment or estimation.
The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments.
Refer to Note 6, “Derivative Instruments and Hedging Activities,” for further discussion regarding the fair value of the Company’s interest rate swap contract.
Refer to Note 4, “Impairment Charges,” for further discussion regarding the fair value of the Company's long-lived assets after impairment.
Financial Assets
The fair values of the Company’s financial assets and the hierarchy of the level of inputs as of January 31, 2026 and February 1, 2025 are summarized below:
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(in thousands) |
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Fair Value Measurements at |
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January 31, |
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February 1, |
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2026 |
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2025 |
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Level 1 |
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Cash equivalents |
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$ |
746,996 |
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$ |
728,443 |
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Financial Liabilities
The fair values of the Company’s financial liabilities are summarized below:
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(in thousands) |
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January 31, 2026 |
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February 1, 2025 |
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Principal |
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Fair |
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Principal |
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Fair |
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Term Loan Facility |
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$ |
1,730,606 |
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$ |
1,730,606 |
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$ |
1,246,875 |
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$ |
1,250,965 |
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2025 Convertible Notes |
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— |
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— |
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156,155 |
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202,852 |
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2027 Convertible Notes |
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297,069 |
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451,205 |
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297,069 |
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444,674 |
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ABL Line of Credit (a) |
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— |
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— |
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— |
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— |
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Total debt (b) |
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$ |
2,027,675 |
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$ |
2,181,811 |
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$ |
1,700,099 |
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$ |
1,898,491 |
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The fair values presented herein are based on pertinent information available to management as of the respective year end dates. The estimated fair values of the Company’s debt are classified as Level 2 in the fair value hierarchy, and are based on current market quotes received from inactive markets. Although management is not aware of any factors that could significantly affect the estimated
fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and current estimates of fair value may differ from amounts presented herein.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Mar 17, 2025 | |
| 2024 | Mar 15, 2024 | |
| 2023 | Mar 13, 2023 | |
| 2022 | Mar 16, 2022 | |
| 2021 | Mar 15, 2021 | |
| 2020 | Mar 13, 2020 | |
| 2019 | Mar 20, 2019 | |
| 2018 | Mar 20, 2018 | |
| 2017 | Mar 16, 2017 | |
| 2016 | Mar 15, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.