Barnes and Noble 2010 Annual Report Download - page 49

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8. RECEIVABLES, NET
Receivables represent customer, private and public
institutional and government billings, credit/debit card,
advertising, landlord and other receivables due within one
year as follows:
May 1,
2010
May 2,
2009
January 31,
2009
Credit/debit card receivablesa$ 40,079 35,621 36,311
Trade accounts 46,723 14,165 15,429
Advertising 5,254 5,609 13,842
Receivables from landlords
for leasehold improvements 3,206 7,617 10,576
Other receivables 11,314 7,709 4,840
Total receivables, net $ 106,576 70,721 80,998
a Credit/debit card receivables consist of receivables from credit/debit
card companies. The Company assumes no customer credit risk for
these receivables.
9. OTHER LONG-TERM LIABILITIES
Other long-term liabilities consist primarily of deferred
rent and obligations under the Junior Seller Note (see
Notes 4 and 22). 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 allow-
ances) is classified as deferred rent. Other long-term
liabilities also include accrued pension liabilities and store
closing expenses. The Company had the following long-
term liabilities at May 1, 2010, May 2, 2009 and January 31,
2009:
May 1, 2010 May 2, 2009
January 31,
2009
Deferred Rent $ 324,528 359,663 366,596
Junior Seller Note (see
Note 4 and Note 22) 150,000 — —
Other 31,375 27,655 26,410
Total long-term liabilities $ 505,903 387,318 393,006
10. FAIR VALUES OF FINANCIAL INSTRUMENTS
In accordance with ASC 820, Fair Value Measurements and
Disclosures, the fair value of an asset is considered to be
the price at which the asset could be sold in an orderly
transaction between unrelated knowledgeable and willing
parties. A liability’s fair value is defined as the amount that
would be paid to transfer the liability to a new obligor, not
the amount that would be paid to settle the liability with
the creditor. Assets and liabilities recorded at fair value
are measured using a three-tier fair value hierarchy, which
prioritizes the inputs used in measuring fair value. These
tiers include:
Level 1 – Observable inputs that reflect quoted prices in
active markets
Level 2 – Inputs other than quoted prices in active markets
that are either directly or indirectly observable
Level 3 – Unobservable inputs in which little or no market
data exists, therefore requiring the Company to develop its
own assumptions
2010 Annual Report 47