Dick's Sporting Goods 2009 Annual Report Download - page 86

commitments are scheduled to be made as follows: 2010, $29.6 million; 2011, $24.1 million; 2012, $17.9 million; 2013,
$3.2 million; 2014, $3.3 million; thereafter, $35.1 million.
In December 2009, the Company entered into an asset assignment agreement with a related party. The Company made deposits
totaling $8 million in fiscal 2009 under the assigned purchase agreement. All deposits are attributed to the total purchase price of
$59.5 million, which is payable in increments through 2012. If the agreement is terminated prior to the delivery date, up to
$3.5 million of the deposits are non-refundable.
The Company is involved in legal proceedings incidental to the normal conduct of its business. Although the outcome of any
pending legal proceedings cannot be predicted with certainty, management believes that adequate insurance coverage is
maintained and that the ultimate resolution of these matters will not have a material adverse effect on the Company’s liquidity,
financial position or results of operations.
16. Fair Value Measurements
The Company adopted fair value guidance as of February 3, 2008 for its financial assets and liabilities, and as of February 1, 2009
the Company adopted the provisions applicable to non-financial assets and liabilities. The guidance defines fair value as the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date (an exit price). The guidance outlines a valuation framework and creates a fair value hierarchy in order to
increase the consistency and comparability of fair value measurements and the related disclosures and prioritizes the inputs used
in measuring fair value as follows:
Level 1: Observable inputs such as quoted prices in active markets;
Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own
assumptions.
Assets measured at fair value on a recurring basis as of January 30, 2010 and January 31, 2009 are set forth in the table below:
Description Level 1 Level 2 Level 3
As of January 30, 2010
Assets:
Unregistered common stock of GSI Commerce (see Note 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,880 $— $—
Deferred compensation plan assets held in trust (see Note 15) . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,119 — —
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,999 $— $—
As of January 31, 2009
Assets:
Unregistered common stock of GSI Commerce (see Note 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,629 $— $—
Deferred compensation plan assets held in trust (see Note 15) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,065 — —
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,694 $— $—
The Company uses quoted prices in active markets to determine the fair value of these assets, thus they are considered to be
Level 1 instruments.
84 Dick’s Sporting Goods, Inc. ¬2009 Annual Report
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)