Barnes and Noble 2006 Annual Report Download - page 43

13. SHAREHOLDERS’ EQUITY
During the  weeks ended January ,  (fi scal
), the Board of Directors authorized a common
stock repurchase program for the purchase of up to
, of the Company’s common shares. The
Company completed this , repurchase program
during the fi rst quarter of fi scal . On March ,
, the Company’s Board of Directors authorized an
additional share repurchase program of up to ,
of the Company’s common shares. The Company com-
pleted this , repurchase program during the
third quarter of fi scal . On September , , the
Company’s Board of Directors authorized a new share
repurchase program of up to , of the Company’s
common shares. Share repurchases under this program
may be made through open market and privately negoti-
ated transactions from time to time and in such amounts
as management deems appropriate. As of February ,
, the Company has repurchased ,, shares at
a cost of approximately , under its share repur-
chase programs. The maximum dollar value of common
shares that may yet be purchased under the current
program is approximately , as of February ,
. The repurchased shares are held in treasury.
Each share of the Company’s Common Stock also
entitles the holder to the right (the Right) to purchase
one four-hundredth of a share of the Company’s Series
H Preferred Stock for . The Right is only exercis-
able if a person or group acquires  or more of the
Company’s outstanding Common Stock or announces
a tender off er or exchange off er, the consummation of
which would result in such person or group owning 
or more of the Company’s outstanding Common Stock.
14. COMMITMENTS AND CONTINGENCIES
The Company leases retail stores, warehouse facilities,
offi ce space and equipment. Substantially all of the
retail stores are leased under noncancelable agreements
which expire at various dates through  with various
renewal options for additional periods. The agreements,
which have been classifi ed as operating leases, generally
provide for both minimum and percentage rentals and
require the Company to pay insurance, taxes and other
maintenance costs. Percentage rentals are based on
sales performance in excess of specifi ed minimums at
various stores.
Rental expense under operating leases are as follows:
FISCAL YEAR 2006 2005 2004
Minimum rentals $ 325,326 319,070 309,082
Percentage rentals 7,171 7,276 6,031
$ 332,497 326,346 315,113
Future minimum annual rentals, excluding percentage
rentals, required under leases that had initial, noncan-
celable lease terms greater than one year, as of February
,  are as follows:
FISCAL YEAR
2007 $ 353,032
2008 336,228
2009 314,165
2010 283,996
2011 231,313
After 2011 723,163
$ 2,241,897
The Company provides for minimum rent expense over
the lease terms (including the build-out period) on a
straight-line basis. The excess of such rent expense
over actual lease payments (net of tenant allowances) is
refl ected primarily in other long-term liabilities in the
accompanying balance sheets.
The Company leases one of its distribution facilities
located in South Brunswick, New Jersey from the New
Jersey Economic Development Authority (NJEDA) under
the terms of an operating lease expiring in June .
Under the terms of this lease, the Company provides a
residual value guarantee to the NJEDA, in an amount
not to exceed ,, relating to the fair market value of
this distribution facility calculated at the conclusion of
the lease term. The Company believes that the possibil-
ity that any such payment would be required under this
guarantee is remote.
2006 Annual Report 41