GameStop 2014 Annual Report Download - page 94

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The following table provides the fair value of our assets and liabilities measured on arecurring basisand recorded on our
consolidated balance sheets (in millions):
January 31, 2015
Level 2
February 1, 2014
Level 2
Assets
Foreign currency contracts
Other current assets........................................................................................... $32.0$ 0.9
Other noncurrent assets..................................................................................... 22.7 0.5
Company-owned life insurance(1) ....................................................................... 8.77.1
Total assets .......................................................................................................... $63.4$ 8.5
Liabilities
Foreign currency contracts
Accrued liabilities............................................................................................. $23.3$ 21.3
Other long-term liabilities................................................................................. 13.0 2.2
Nonqualified deferred compensation(2) ............................................................... 1.21.1
Total liabilities..................................................................................................... $37.5$ 24.6
___________________
(1) Recognized in other non-current assets in ourconsolidated balance sheets.
(2) Recognized in accrued liabilities in ourconsolidated balancesheets.
We use forward exchange contracts, foreign currency options and cross-currency swaps (together,the “foreign currency
contracts”) to manage currency risk primarily related to foreign-currency denominated intercompany assets and liabilities and
certain other 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 $1,128.5 million and $640.6 million as of January 31, 2015 and February 1, 2014,
respectively.
Activity related to the trading of derivative instruments and the offsetting impact of related intercompany and foreign currency
assets and liabilities recognized in selling, general and administrative expense is as follows(in millions):
52 Weeks Ended
January 31, 2015
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
Gains (losses) on the changes in fair value of derivative
instruments ..................................................................................... $28.9 $(20.3)$ (19.8)
Gains (losses) on the re-measurement of related intercompany
loans and foreign currency assets and liabilities ............................ (26.4)23.6 22.3
Total................................................................................................ $2.5 $3.3 $2.5
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 anumberofdifferent counterparties to minimize our exposure to potential defaults. We do not
require collateral under derivative or investment agreements.
Nonrecurring Fair ValueMeasurements
In addition to assets and liabilities that are recorded at fair value on arecurring basis, we recorded certain assets and liabilities
at fair value on anonrecurring basis as required by GAAP.Assetsand liabilities that are measured at fair value on anonrecurring
basis related primarily to write-downsassociated with property and equipment, goodwill and other intangible assets.
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-17