v3.24.3
Fair Value Measurements
 9 Months Ended
Nov. 02, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

7. Fair Value Measurements

We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

•
Level 1— Quoted prices in active markets for identical assets or liabilities;
•
Level 2— Quoted prices for similar assets or liabilities in active markets or inputs that are observable; and
•
Level 3— Inputs that are unobservable.

The following tables summarize assets measured at fair value on a recurring basis (in thousands):

 

 

November 2, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

40,905

 

 

$

—

 

 

$

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. treasury and government agency securities

 

 

—

 

 

 

12,578

 

 

 

—

 

Corporate debt securities

 

 

—

 

 

 

18,037

 

 

 

—

 

Certificates of deposit

 

 

—

 

 

 

16,208

 

 

 

—

 

State and local government securities

 

 

—

 

 

 

497

 

 

 

—

 

Variable-rate demand notes

 

 

—

 

 

 

3,440

 

 

 

—

 

Other current and long-term assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

 

9,008

 

 

 

—

 

 

 

—

 

Total

 

$

49,913

 

 

$

50,760

 

 

$

—

 

 

 

February 3, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

11,322

 

 

$

—

 

 

$

—

 

Corporate debt securities

 

 

—

 

 

 

39,365

 

 

 

—

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. treasury and government agency securities

 

 

—

 

 

 

14,776

 

 

 

—

 

Corporate debt securities

 

 

—

 

 

 

40,271

 

 

 

—

 

Certificates of deposit

 

 

—

 

 

 

16,607

 

 

 

—

 

State and local government securities

 

 

—

 

 

 

6,420

 

 

 

—

 

Variable-rate demand notes

 

 

—

 

 

 

4,630

 

 

 

—

 

Other long-term assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

 

5,409

 

 

 

—

 

 

 

—

 

Total

 

$

16,731

 

 

$

122,069

 

 

$

—

 

 

The Level 2 marketable securities include U.S treasury and government agency securities, corporate debt securities, state and local municipal securities and variable-rate demand notes. Fair values are based on quoted market prices for similar assets or liabilities or determined using inputs that use readily observable market data that are actively quoted and can be validated through external sources, including third-party pricing services, brokers, and market transactions. We review the pricing techniques and methodologies of the independent pricing service for Level 2 investments and believe that its policies adequately consider market activity, either based on specific transactions for the security valued or based on modeling of securities with similar credit quality, duration, yield, and structure that were recently traded. We monitor security-specific valuation trends and we make inquiries with the pricing service about material changes or the absence of expected changes to understand the underlying factors and inputs and to validate the reasonableness of the pricing.

Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as fixed assets, operating lease right-of-use-assets, goodwill, other intangible assets, and other assets. These assets are measured at fair value if determined to be impaired. During the three months ended November 2, 2024, we recognized $0.2 in impairment losses related to fixed assets and $0.4 million for three months ended October 28, 2023. During the nine months ended November 2, 2024, we recognized $0.4 million in impairment losses related to fixed assets and $0.7 impairment losses for nine months ended October 28, 2023. During the three months ended November 2, 2024, we recognized less than $0.1 million in impairment losses related to operating lease right-of-use assets and $0.2 million for the three months ended October 28, 2023. For the nine months ended November 2, 2024, we recognized $0.1 million impairment loss related to operating lease right-of-use assets and $0.2 million for the nine months ended October 28, 2023.