SPORTSMAN'S WAREHOUSE HOLDINGS, INC. Fair Value Disclosure
(8) Fair Value Measurements
Fair value measurements are reported based upon three categories, with the lowest level of measurement available applied. The levels of fair value measurement are as follows: Level 1 - quoted prices on active markets; Level 2 - observable market inputs other than quoted prices on active markets; Level 3 - unobservable data requiring the Company to develop its own approach that cannot be corroborated by market data.
The following table shows the fair value measurements of the Company on a recurring basis:
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Fair Value as of |
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Fair Value as of |
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Asset |
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Type |
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Measurement Level |
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January 28, 2023 |
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January 29, 2022 |
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Short-term Investments (1) |
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Cash and Cash Equivalents |
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Level 1 |
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$ |
— |
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$ |
55,000 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Apr 13, 2023 | Showing above |
| 2022 | Mar 30, 2022 | |
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.