GameStop 2013 Annual Report Download - page 92

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F-19
February 1, 2014
Level 2
February 2, 2013
Level 2
Assets
Foreign currency contracts
Other current assets........................................................................................... $ 0.9 $ 7.3
Other noncurrent assets..................................................................................... 0.5 0.9
Life insurance policies we own1......................................................................... 7.1 3.5
Total assets.......................................................................................................... $ 8.5 $ 11.7
Liabilities
Foreign currency contracts
Accrued liabilities............................................................................................. $ 21.3 $ 9.1
Other long-term liabilities................................................................................. 2.2 4.4
Nonqualified deferred compensation2................................................................. 1.1 0.9
Total liabilities..................................................................................................... $ 24.6 $ 14.4
____________________
1 Recognized in other non-current assets in our consolidated balance sheets.
2 Recognized in accrued liabilities in our consolidated balance sheets.
We use foreign currency contracts, including forward exchange contracts, foreign currency options and cross-currency swaps,
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 recognized in earnings, thereby offsetting the current earnings effect of the re-measurement of
related intercompany loans and foreign currency assets and liabilities. The total gross notional value of derivatives related to our
foreign currency contracts was $640.6 million and $669.9 million as of February 1, 2014 and February 2, 2013, respectively.
Activity related to the trading of derivative instruments and the offsetting impact of related intercompany loans and foreign
currency assets and liabilities recognized in selling, general and administrative expense is as follows (in millions):
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
52 Weeks Ended
January 28, 2012
Gains (losses) on the changes in fair value of derivative
instruments ..................................................................................... $(20.3)$ (19.8) $ 13.5
Gains (losses) on the re-measurement of related intercompany
loans and foreign currency assets and liabilities ............................ 23.6 22.3 (14.1)
Total................................................................................................ $ 3.3 $ 2.5 $ (0.6)
We do not use derivative financial instruments for trading or speculative purposes. We are exposed to counterparty credit
risk on all of our derivative financial instruments and cash equivalent investments. We manage counterparty risk according to the
guidelines and controls established under comprehensive risk management and investment policies. We continuously monitor our
counterparty credit risk and utilize a number of different counterparties to minimize our exposure to potential defaults. We do not
require collateral under derivative or investment agreements.
Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we recorded certain assets and liabilities
at fair value on a nonrecurring basis as required by GAAP. Assets and liabilities that are measured at fair value on a nonrecurring
basis related primarily to our tangible property and equipment, goodwill and other intangible assets.