Barnes and Noble 2006 Annual Report Download - page 39

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being the Waiver Termination Date); and () potential
adjustments to previously delivered Company fi nancial
statements arising solely from the stock option review will
not aff ect the Company’s ability to obtain credit exten-
sions between the date of the Waiver Agreement and the
Waiver Termination Date. The Company expects to deliver
the required offi cer’s certifi cate to the Lender and the
Administrative Agent by the Due Date.
Selected information related to the Company’s term loan
and convertible subordinated notes and the Amended
New, New and Prior Facilities:
FISCAL YEAR 2006 2005 2004
Revolving credit facility $ — — —
Term loan — — 245,000
Balance at end of year $ — — 245,000
Average balance outstanding
during the year $ 23,337 121,915 276,043
Maximum borrowings
outstanding during the year $ 91,800 245,000 392,700
Weighted average interest
rate during the year a15.40% 6.91% 5.25%
Interest rate at end of year — — 3.78%
a The fi scal 2006 interest rate is higher than prior periods due to the
lower average borrowings and the fi xed nature of the amortization
of the deferred fi nancing fees and commitment fees. Excluding the
deferred fi nancing fees and the commitment fees in fi scal 2006, the
weighted average interest rate was 7.70%.
Fees expensed with respect to the unused portion of the
Amended New, New and Prior Facilities were ,,
, and ,, during fi scal ,  and ,
respectively.
The amounts outstanding under the Amended New,
New and Prior Facilities, if any, have been classifi ed
as long-term debt based on the Company’s ability to
continually maintain principal amounts outstanding.
The Company has no agreements to maintain
compensating balances.
7. FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying values of cash and cash equivalents
reported in the accompanying consolidated balance
sheets approximate fair value due to the short-term
maturities of these assets. The aggregate fair value of the
Credit Facility approximates its carrying amount because
of its recent and frequent repricing based upon market
conditions.
8. NET EARNINGS PER SHARE
Following is a reconciliation of earnings from continu-
ing operations and weighted average common shares
outstanding for purposes of calculating basic and diluted
earnings per share:
FISCAL YEAR 2006 2005 2004
NUMERATOR
Earnings from continuing
operations $ 150,527 146,681 123,375
Interest expense on 5.25%
convertible subordinated
notes, net of tax — — 3,835
$ 150,527 146,681 127,210
DENOMINATOR
Basic weighted average
common shares outstanding 65,212 67,560 69,018
Weighted average
assumed conversion of
5.25% convertible
subordinated notes — — 3,752
Dilutive effect of stock
awards 4,014 4,590 2,926
Diluted outstanding shares 69,226 72,150 75,696
EARNINGS FROM
CONTINUING OPERATIONS
Basic $ 2.31 2.17 1.79
Diluted $ 2.17 2.03 1.68
2006 Annual Report 37