Barnes and Noble 2010 Annual Report Download - page 24

Selected information related to the Company’s Credit Facility and Prior Credit Facility (in thousands):
Fiscal 2010
13 weeks ended
May 2, 2009
13 weeks ended
May 3, 2008 Fiscal 2008 Fiscal 2007
Credit facility at period end $ 260,400 — 86,700 — —
Average balance outstanding
during the period $ 107,504 — 12,064 63,871 1,392
Maximum borrowings outstanding
during the period $ 512,500 — 98,800 199,900 37,600
Weighted average interest rate
during the perioda4.38% — 18.20% 6.05% 173.16%
Interest rate at end of period 4.13% — 5.00% — —
a The fiscal 2007 interest rate, as well as the interest rate for the 13 weeks ended May 3, 2008, is higher than the fiscal 2008 interest rate due to the lower
average borrowings and the fixed nature of the amortization of the deferred financing fees and commitment fees. Excluding the deferred financing fees
and the commitment fees in the 13 weeks ended May 3, 2008 and fiscal 2007, the weighted average interest rate was 5.14% and 7.51%, respectively.
Fees expensed with respect to the unused portion of the
Credit Facility and Prior Credit Facility were $4.2 mil-
lion, $0.3 million, $0.3 million, $1.0 million and $1.0
million, during fiscal 2010, the transition period, the 13
weeks ended May 3, 2008, fiscal 2008 and 2007, respec-
tively. The increase in commitment fees in fiscal 2010 was
related to the Company’s Credit Agreement entered into on
September 30, 2009 in connection with the Acquisition.
The Company has no agreements to maintain compensat-
ing balances.
Capital Investment
Capital expenditures for continuing operations were $127.8
million, $22.8 million, $38.3 million, $192.2 million and
$194.0 million during fiscal 2010, the transition period,
the 13 weeks ended May 3, 2008, fiscal 2008 and 2007,
respectively. Capital expenditures planned for fiscal 2011
primarily relate to the maintenance of existing stores and
system enhancements for the retail and college stores and
the Company’s digital initiatives and website. The capital
expenditures are projected to be in the range of $150.0
million to $200.0 million for fiscal 2011, although commit-
ment to many of such expenditures has not yet been made.
Based on planned operating levels and capital expendi-
tures for fiscal 2011, management believes cash and cash
equivalents on hand, cash flows generated from operating
activities, short-term vendor financing and borrowing
capacity under the Credit Facility will be sufficient to meet
the Company’s working capital and debt service require-
ments, and support the development of its short- and long-
term strategies for at least the next 12 months. However,
the Company may determine to raise additional capital to
support the growth of online and digital businesses.
On May 15, 2007, the Company announced that its Board
of Directors authorized a stock repurchase program for the
purchase of up to $400.0 million of the Company’s com-
mon stock. The maximum dollar value of common stock
that may yet be purchased under the current program is
approximately $2.5 million as of May 1, 2010.
Stock repurchases under this program may be made
through open market and privately negotiated transactions
from time to time and in such amounts as management
deems appropriate. As of May 1, 2010, the Company has
repurchased 33,284,610 shares at a cost of approximately
$1.1 billion under its stock repurchase programs. The
repurchased shares are held in treasury.
22 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued