Barnes and Noble 2010 Annual Report Download - page 40

differ from the amounts recorded. Through fiscal 2010, the
Company also sold online gift certificates for use solely on
Barnes & Noble.com, which were treated the same way as
gift cards. The Company recognized gift card breakage of
$21,328, $5,432, $21,369, and $19,714 during fiscal 2010,
the transition period, fiscal 2008 and fiscal 2007, respec-
tively. The Company had gift card liabilities of $290,578,
$274,030 and $321,224, as of May 1, 2010, May 2, 2009 and
January 31, 2009, respectively, which amounts are included
in accrued liabilities.
Reclassifications
Certain prior-period amounts have been reclassified for
comparative purposes to conform with the fiscal 2010
presentation.
Reporting Period
On September 30, 2009, the Board of Directors of Barnes
& Noble authorized a change in the Company’s fiscal year
end from the Saturday closest to the last day of January to
the Saturday closest to the last day of April. The Company’s
fiscal year is comprised of 52 or 53 weeks, ending on the
Saturday closest to the last day of April. The reporting peri-
ods ended May 1, 2010, May 2, 2009, January 31, 2009 and
February 2, 2008 contained 52 weeks, 13 weeks, 52 weeks
and 52 weeks, respectively.
Recent Accounting Pronouncements
In June 2009, the FASB issued ASC 105-10, The FASB
Accounting Standards Codification and the Hierarchy of
Generally Accepted Accounting Principles, a Replacement
of FASB Statement No. . The ASC identifies itself as the
source of authoritative accounting principles recognized
by the FASB to be applied by nongovernmental entities in
the preparation of financial statements in conformity with
generally accepted accounting principles in the United
States (GAAP). Rules and interpretive releases of the SEC
under authority of federal securities laws are also sources
of authoritative GAAP for SEC registrants. This statement
is effective for financial statements issued for interim
and annual periods ending after September 15, 2009. The
ASC does not change GAAP, but is intended to simplify
user access to all authoritative GAAP by providing all the
authoritative literature related to a particular topic in one
place. The FASB will not issue new standards in the form of
Statements, FASB Staff Positions or Emerging Issues Task
Force Abstracts. Instead, it will issue Accounting Standards
Updates (ASUs). The FASB will not consider ASUs as
authoritative in their own right. ASUs will only serve to
update the ASC, provide background information regard-
ing the guidance, and provide the basis for conclusions on
the change(s) in the ASC. Effective September 15, 2009, all
public filings of the Company will reference the ASC as the
sole source of authoritative literature.
In April 2009, the FASB issued ASC 855-10-05, Subsequent
Events (ASC 855-10-05), which provides guidance to estab-
lish general standards of accounting for and disclosure of
events that occur after the balance sheet date but before
financial statements are issued. ASC 855-10-05 is effective
for interim and annual periods ending after June 15, 2009.
The Company adopted ASC 855-10-05 at May 3, 2009 and
the adoption had no impact on the Company’s financial
position, results of operations and cash flows.
In April 2009, the FASB issued ASC 825-10, Interim
Disclosures about Fair Value of Financial Instruments (ASC
825-10). ASC 825-10 amends ASC 825-10, Disclosures About
Fair Value of Financial Instruments, and requires disclo-
sures about fair value of financial instruments for interim
reporting periods of publicly traded companies as well as
in annual financial statements. ASC 825-10 also amends
ASC 270-10, Interim Financial Reporting, and requires those
disclosures in summarized financial information at interim
reporting periods. ASC 825-10 is effective for interim
reporting periods ending after June 15, 2009. The Company
adopted ASC 825-10 at May 3, 2009.
In October 2009, the FASB issued ASU No. 2009-13,
Multiple-Deliverable Revenue Arrangements—a Consensus of
the FASB Emerging Issues Task Force (ASU 2009-13). ASU
2009-13 updates the existing multiple-element revenue
arrangements guidance currently included under ASC
605-25, Revenue Arrangements with Multiple Deliverables.
The revised guidance addresses how to separate deliv-
erables, and how to measure and allocate arrangement
consideration. Vendors often provide multiple products or
services to customers. Because products and services are
often provided at different points in time or over different
time periods within the same contractual arrangement,
this guidance enables vendors to account for products or
services separately rather than as a combined unit.
38 Barnes & Noble, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued