DICK'S SPORTING GOODS, INC.DKS
DICK'S SPORTING GOODS, INC. Fair Value Disclosure
ASC 820, “Fair Value Measurement and Disclosures”, outlines a valuation framework and creates a fair value hierarchy for assets and liabilities as follows:
Level 1: Observable inputs such as quoted prices in active markets;
Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop
its own assumptions.
Recurring
The Company records deferred compensation plan assets held in trust at fair value on a recurring basis using Level 1 inputs within other long-term assets on the Consolidated Balance Sheets. Such assets consist of investments in various mutual and money market funds made by eligible individuals as part of the Company’s deferred compensation plans, as discussed in Note 15 – Retirement Plans and Other Benefits. As of January 31, 2026 and February 1, 2025, the fair value of the Company’s deferred compensation plans was $178.0 million and $153.7 million, respectively. The liability for compensation deferred under the Company’s plans is included within other long-term liabilities on the Consolidated Balance Sheets.
In connection with the Foot Locker acquisition, the Company acquired derivative financial instruments, which are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility and therefore are classified as Level 2 instruments.
Assets and liabilities measured at fair value on a recurring basis for the following periods are set forth in the table below (in thousands):
| January 31, 2026 | February 1, 2025 | |||||||||||||
| Assets: | ||||||||||||||
Level 1: | ||||||||||||||
| Deferred compensation plan assets held in trust | $ | 178,006 | $ | 153,707 | ||||||||||
Level 2: | ||||||||||||||
| Available-for-sale security | 5,544 | — | ||||||||||||
| Foreign exchange forward contracts | 727 | — | ||||||||||||
| Cross-currency swap contract | 18,449 | — | ||||||||||||
| Total assets | $ | 202,726 | $ | 153,707 | ||||||||||
| Liabilities: | ||||||||||||||
Level 1: | ||||||||||||||
| Deferred compensation liabilities | $ | 178,006 | $ | 153,707 | ||||||||||
Level 2: | ||||||||||||||
| Foreign exchange forward contracts | 6,469 | — | ||||||||||||
| Total liabilities | $ | 184,475 | $ | 153,707 | ||||||||||
Due to their short-term nature, the fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated their carrying values at January 31, 2026 and February 1, 2025.
Nonrecurring
Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include property and equipment, operating lease assets, goodwill and other intangible assets, equity and certain other assets. These assets are required to be assessed for impairment when events or circumstances indicate that the carrying value may not be recoverable, and at least annually for goodwill and indefinite-lived intangible assets. If an impairment is required, the asset is adjusted to fair value using Level 3 inputs.
During fiscal 2025, the Company purchased $119.5 million of investments. These investments consist of $69.5 million of Foot Locker equity securities and $50.0 million for an equity method investment. The fair value of the Foot Locker securities owned by the Company on September 8, 2025 was $111.6 million, which was included in the purchase price consideration as part of the Foot Locker acquisition. The Company recorded a non-cash gain of $42.2 million in fiscal 2025 related to these equity securities within other income on the Consolidated Statements of Income, resulting from net changes in Foot Locker’s underlying stock price during the respective periods. The equity method investment is included within other long-term assets on the Consolidated Balance Sheets. Refer to Note 2 – Acquisition of Foot Locker for additional information.
During fiscal 2023, as part of the Business Optimization, the Company eliminated certain positions primarily at its CSC and optimized its outdoor business, which included the integration of its Moosejaw and Public Lands operations, decisions about their go-forward inventory assortment and a comprehensive review of their store portfolios and closure of ten Moosejaw stores. The Company incurred pre-tax charges of $84.8 million from its Business Optimization, including $46.1 million of non-cash impairments of store and intangible assets, $26.7 million of severance-related costs and a $12.0 million write-down of inventory. The $12.0 million write-down of inventory is reflected within , while the remaining $72.8 million of severance-related costs and non-cash impairments are reflected within on the Consolidated Statement of Income. Depreciation and amortization on the Consolidated Statement of Cash Flows included $35.5 million of non-cash impairment of store assets from these actions in fiscal 2023.
Long-term Debt
The Company discloses the fair value of its Senior Notes using Level 2 inputs, which are based on quoted prices for similar or identical instruments in inactive markets, as follows (in thousands):
| January 31, 2026 | February 1, 2025 | ||||||||||||||||||||||
| Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
| 2029 Notes | $ | 384,500 | $ | 394,132 | $ | — | $ | — | |||||||||||||||
| 2032 Notes | $ | 744,722 | $ | 690,683 | $ | 743,933 | $ | 657,608 | |||||||||||||||
| 2052 Notes | $ | 740,484 | $ | 548,258 | $ | 740,284 | $ | 546,165 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 27, 2026 | Showing above |
| 2025 | Mar 27, 2025 | |
| 2024 | Mar 28, 2024 | |
| 2023 | Mar 23, 2023 | |
| 2022 | Mar 23, 2022 | |
| 2021 | Mar 24, 2021 | |
| 2020 | Mar 20, 2020 | |
| 2019 | Mar 29, 2019 | |
| 2018 | Mar 30, 2018 | |
| 2017 | Mar 24, 2017 | |
| 2016 | Mar 25, 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.