Barnes and Noble 2002 Annual Report Download - page 14

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The following table sets forth, for the periods indicated, the percentage relationship that certain items bear to total sales
of the Company:
Fiscal Year 2002 2001 2000
Sales 100.0 % 100.0 % 100.0 %
Cost of sales and occupancy 73.2 73.1 72.4
Gross margin 26.8 26.9 27.6
Selling and administrative expenses 18.3 18.6 18.6
Legal settlement expense -- 0.1 --
Depreciation and amortization 2.8 3.0 3.3
Pre-opening expenses 0.2 0.2 0.2
Impairment charge 0.5 -- 2.4
Operating margin 5.0 5.0 3.1
Interest expense, net and amortization of deferred financing fees ( 0.4 ) ( 0.8 ) ( 1.2 )
Equity in net loss of Barnes & Noble.com ( 0.5 ) ( 1.8 ) ( 2.4 )
Other expense ( 0.3 ) ( 0.2 ) ( 0.2 )
Earnings (loss) before income taxes and minority interest 3.8 2.2 ( 0.7 )
Income taxes 1.5 0.9 0.4
Income before minority interest 2.3 1.3 ( 1.1 )
Minority interest ( 0.4 ) -- --
Net earnings (loss) 1.9 % 1.3 % ( 1.1 )%
(1) Fiscal 2002 operating profit is net of a non-cash impairment
charge of $25,328. Fiscal 2001 operating profit is net
of legal and settlement expenses of $4,500. Fiscal 2000
operating profit is net of a non-cash impairment charge
of $106,833.
(2) Comparable store sales for Barnes & Noble stores are
determined using stores open at least 15 months, due to
the high sales volume associated with grand openings.
Comparable store sales for B. Dalton and GameStop
stores are determined using stores open at least 12 months.
13
2002 Annual Report Barnes & Noble, Inc.
[MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS continued ]