GameStop 2010 Annual Report Download - page 87

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Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table contains information on restricted shares and options to purchase shares of Class A common stock which were excluded
from the computation of diluted earnings per share because they were anti-dilutive:
Anti- Range of
Dilutive Exercise Expiration
Shares Prices Dates
(In millions, except per share data)
52 Weeks Ended January 29, 2011 4.0 $ 20.32 - 49.95 2017 - 2020
52 Weeks Ended January 30, 2010 3.2 $ 26.02 - 49.95 2011 - 2019
52 Weeks Ended January 31, 2009 2.5 $ 26.68 - 49.95 2010 - 2018
5. Fair Value Measurements and Financial Instruments
The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Fair value accounting guidance applies to our Foreign Currency Contracts, Company-owned
life insurance policies with a cash surrender value and certain nonqualified deferred compensation liabilities that are measured at fair value on a
recurring basis in periods subsequent to initial recognition.
Fair value accounting guidance requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels
depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or
liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly
through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by
market participants.
We value our Foreign Currency Contracts, Company-owned life insurance policies with cash surrender values and certain nonqualified
deferred compensation liabilities based on Level 2 inputs using quotations provided by major market news services, such as Bloomberg and The
Wall Street Journal, and industry-standard models that consider various assumptions, including quoted forward prices, time value, volatility factors,
and contractual prices for the underlying instruments, as well as other relevant economic measures. When appropriate, valuations are adjusted to
reflect credit considerations, generally based on available market evidence.
The following table provides the fair value of our assets and liabilities measured on a recurring basis and recorded on our consolidated balance
sheets (in millions):
January 29, 2011 January 30, 2010
Level 2 Level 2
Assets
Foreign Currency Contracts $ 14.0 $ 20.1
Company-owned life insurance 3.1 2.6
Total assets $ 17.1 $ 22.7
Liabilities
Foreign Currency Contracts $ 12.8 $ 9.0
Nonqualified deferred compensation 0.9 0.8
Total liabilities $ 13.7 $ 9.8
The Company uses Foreign Currency Contracts to manage currency risk primarily related to intercompany loans denominated in non-
functional currencies and certain foreign currency assets and liabilities. These Foreign Currency Contracts are not designated as hedges and,
therefore, changes in the fair values of these derivatives are F-17