K. FAIR VALUE MEASUREMENT

At January 31, 2026 and February 1, 2025, the Company held U.S. treasury bills, which were classified as held-to maturity and carried at amortized cost as follows:
 

 

 

 

 

Fair Value

 

(in thousands)

Carrying value

 

 

Quoted Prices in Active Markets for Identical Assets
 (Level 1)

 

 

Significant Observable Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

At January 31, 2026:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

11,052

 

 

 

11,056

 

 

 

 

 

 

 

Short-term investments

 

5,029

 

 

 

5,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At February 1, 2025:

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

36,516

 

 

 

36,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical Timeline

Fiscal YearFiled
2026Mar 19, 2026Showing above
2025Mar 20, 2025
2024Mar 21, 2024
2023Mar 16, 2023

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.