GameStop 2014 Annual Report Download - page 95

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During fiscal 2014, we recorded a$2.2million impairment charge related to assets measured at fair value on anonrecurring
basis, comprised of $1.9 million of property and equipment impairments and $0.3 million of other intangible asset impairments.
During fiscal 2013, we recorded a$28.7 million impairment charge related to assets measured at fair value on anonrecurring basis,
comprised of $16.4 million of property and equipment impairments, $10.2 million of goodwill impairments and $2.1 million of
other intangible asset impairments. When recognizing an impairment charge, the carrying value of the asset is reduced to fair value
and the difference is recorded within operating earnings in our consolidated statements of operations. The fair value measurements
included in the goodwill, trade name and property and equipment impairments were primarily based on significant unobservable
inputs (Level 3) developed using company-specific information. See Note 9, "Goodwill and Intangible Assets," for further
information associated with the goodwill and trade name impairments and Note 2, "Asset Impairments," for further information
associated with the property and equipment impairments.
Additionally,werecordedthe fair value of net assets acquired and liabilities assumed in connection with our Technology
Brands acquisitions in fiscal 2014 and fiscal 2013. The fair value measurements were primarily based on significant unobservable
inputs (Level 3) developed using company-specific information. See Note 3, "Acquisitions and Divestitures," for further information
associated with the values recorded in the acquisitions.
Other Fair ValueDisclosures
The carrying values of our cash equivalents, receivables, net, accounts payable and notes payable approximate the fair value
due to their short-term maturities.
As of January 31, 2015, our unsecured 5.50% senior notes due October 1, 2019 (the "Senior Notes") had acarrying value of
$350.0 million and afairvalue of $356.8 million. The fair value of the Senior Notes was determined based on quoted market prices
obtained through an external pricing source which derives its price valuations from daily marketplace transactions, with adjustments
to reflect the spreads of benchmark bonds, credit risk and certain other variables. We have determined this to be aLevel 2
measurement as all significant inputs into the quote provided by our pricing source are observable in active markets.
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-18
7. Receivables, Net
Receivables consist primarily of bankcard receivables and other receivables. Other receivables include receivables from
vendors, primarily related to commissions receivable associated with our Technology Brands businesses, Game Informer magazine
advertising customers, receivables from landlords for tenant allowances and receivables from vendors for merchandise returns,
vendor marketing allowances and various other programs. An allowance for doubtful accounts has been recorded to reduce
receivables to an amount expected to be collectible. Receivables consisted of the following (in millions):
January 31, 2015 February 1, 2014
Bankcard receivables ................................................................................................ $52.9$ 42.6
Other receivables ...................................................................................................... 64.3 45.5
Allowance for doubtful accounts.............................................................................. (3.7) (3.7)
Total receivables, net ................................................................................................ $113.5 $84.4
8. Accrued Liabilities
Accrued liabilities consisted of the following (in millions):
January 31, 2015 February 1, 2014
Customer liabilities.................................................................................................... $364.3 $368.8
Deferred revenue ....................................................................................................... 103.5118.1
Employee benefits, compensationand related taxes ................................................. 137.5145.3
Other taxes................................................................................................................. 49.9 53.5
Other accrued liabilities............................................................................................. 148.4176.0
Total accrued liabilities.............................................................................................. $803.6 $861.7