MOVADO GROUP INC Fair Value Disclosure
NOTE 9 - 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:
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 January 31, 2026 and 2025 (in thousands):
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Fair Value at January 31, 2026 |
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Balance Sheet Location |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
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|
Total |
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Assets: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities |
|
Other current assets |
|
$ |
281 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
281 |
|
Short-term investment |
|
Other current assets |
|
|
153 |
|
|
|
— |
|
|
|
— |
|
|
|
153 |
|
SERP assets - employer |
|
Other non-current assets |
|
|
607 |
|
|
|
— |
|
|
|
— |
|
|
|
607 |
|
SERP assets - employee |
|
Other non-current assets |
|
|
55,739 |
|
|
|
— |
|
|
|
— |
|
|
|
55,739 |
|
Defined benefit plan assets (1) |
|
Other non-current liabilities |
|
|
— |
|
|
|
— |
|
|
|
40,045 |
|
|
|
40,045 |
|
Hedge derivatives |
|
Other current assets |
|
|
— |
|
|
|
484 |
|
|
|
— |
|
|
|
484 |
|
Total |
|
|
|
$ |
56,780 |
|
|
$ |
484 |
|
|
$ |
40,045 |
|
|
$ |
97,309 |
|
Liabilities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
||||
SERP liabilities - employee |
|
Other non-current liabilities |
|
$ |
55,739 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
55,739 |
|
Hedge derivatives |
|
Accrued liabilities |
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
10 |
|
Total |
|
|
|
$ |
55,739 |
|
|
$ |
10 |
|
|
$ |
— |
|
|
$ |
55,749 |
|
|
|
|
|
Fair Value at January 31, 2025 |
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|||||||||||||
|
|
Balance Sheet Location |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities |
|
Other current assets |
|
$ |
306 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
306 |
|
Short-term investment |
|
Other current assets |
|
|
143 |
|
|
|
— |
|
|
|
— |
|
|
|
143 |
|
SERP assets - employer |
|
Other non-current assets |
|
|
605 |
|
|
|
— |
|
|
|
— |
|
|
|
605 |
|
SERP assets - employee |
|
Other non-current assets |
|
|
53,442 |
|
|
|
— |
|
|
|
— |
|
|
|
53,442 |
|
Defined benefit plan assets (1) |
|
Other non-current liabilities |
|
|
— |
|
|
|
— |
|
|
|
34,313 |
|
|
|
34,313 |
|
Hedge derivatives |
|
Other current assets |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
13 |
|
Total |
|
|
|
$ |
54,496 |
|
|
$ |
13 |
|
|
$ |
34,313 |
|
|
$ |
88,822 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
SERP liabilities - employee |
|
Other non-current liabilities |
|
$ |
53,442 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
53,442 |
|
Hedge derivatives |
|
Accrued liabilities |
|
|
— |
|
|
|
1,111 |
|
|
|
— |
|
|
$ |
1,111 |
|
Total |
|
|
|
$ |
53,442 |
|
|
$ |
1,111 |
|
|
$ |
— |
|
|
$ |
54,553 |
|
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 8 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 eligible employees and provides benefits based on years of service and compensation on a career-average pay basis. The assets within the plan are classified as Level 3 within the fair value hierarchy and consist primarily of investments in pooled funds, including separate employee accounts invested in equity securities, debt securities and real estate. The fair values of these investments are based on valuations provided by the fund administrators, which are not readily observable and cannot be corroborated by observable market data; accordingly, these investments are classified within Level 3 of the fair value hierarchy. The net funded status of the plan, which reflects the fair value of plan assets less the projected benefit obligation, is included in Other non-current liabilities in the Consolidated Balance Sheets at January 31, 2026 and January 31, 2025, respectively.
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 2025, the Company invested approximately $14.1 million and during fiscal 2026 the Company invested an additional $3.4 million in venture capital funds (see Note 10 - Commitments and Contingencies for discussion of commitments made related to venture capital funds). During fiscal year 2026, the Company recorded a non-cash impairment charge of $0.4 million (recorded in Other income, net in the Consolidated Statements of Operations) related to one of its investments in a venture capital fund in which the Company has a limited partnership interest. The write-down was a result of a decline in fair value primarily attributable to a deterioration in the financial condition and operating performance of certain of the underlying portfolio companies within the fund that was determined to be other than temporary. In addition, one consumer products company in which the Company made an equity investment in fiscal year 2022 sold its business and assets in fiscal year 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 fiscal 2024 which is recorded in Other income, net in the Consolidated Statements of Operations. The Company will continue to regularly evaluate the carrying value of its investments. The carrying value of the investments is recorded in Other non-current assets in the Consolidated Balance Sheets at January 31, 2026 and January 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Apr 16, 2025 | |
| 2024 | Mar 26, 2024 | |
| 2023 | Mar 23, 2023 | |
| 2022 | Mar 24, 2022 | |
| 2021 | Mar 25, 2021 | |
| 2020 | Mar 26, 2020 | |
| 2019 | Mar 28, 2019 | |
| 2018 | Mar 29, 2018 | |
| 2017 | Mar 20, 2017 | |
| 2016 | Mar 31, 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.