Barnes and Noble 2000 Annual Report Download - page 35

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31
(1) As a result of the Company’s additional investment
in Calendar Club L.L.C. (Calendar Club) in fiscal
2000, the consolidated statement of operations
includes the operations of Calendar Club for the full
year. Included in fiscal 2000 are sales and operating
profits associated with Calendar Club of $66,301 and
$1,395, respectively. Prior to fiscal 2000, the
Company’s consolidated statement of operations
included its equity in the results of operations of
Calendar Club as a component of other income
(expense). The Company’s equity in the net earnings
of Calendar Club for fiscal 1999 and fiscal 1998 were
$1,228 and $2,274, respectively.
(2) Fiscal 2000 operating profit is net of a non-cash
impairment charge of $106,833.
(3) Comparable store sales for Barnes & Noble stores are
determined using stores open at least 15 months, due
to the high sales volume associated with grand
openings. Comparable store sales for B. Dalton
stores are determined using stores open at least 12
months. Comparable store sales for the video game
and entertainment software stores include sales of
stores that have been open for 12 months.
(4) Includes FuncoLand stores acquired in June 2000.
2000 Annual Report ■Barnes & Noble, Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued
The following table sets forth, for the periods indicated, the percentage relationship that certain items bear to total sales
of the Company:
Fiscal Year 2000 1999 1998
Sales 100.0 % 100.0 % 100.0 %
Cost of sales and occupancy 72.4 71.2 71.3
Gross margin 27.6 28.8 28.7
Selling and administrative expenses 18.6 18.7 19.3
Depreciation and amortization 3.3 3.2 2.9
Pre-opening expenses 0.2 0.2 0.3
Impairment charge 2.4 -- --
Operating margin 3.1 6.7 6.2
Interest expense, net and amortization of deferred financing fees (1.2 ) ( 0.7 ) ( 0.8 )
Equity in net loss of Barnes & Noble.com (2.4 ) ( 1.2 ) (2.4 )
Gain on formation of Barnes & Noble.com -- 0.7 2.1
Other income (expense) (0.2 ) 0.8 0.1
Earnings (loss) before provision for income taxes and cumulative
effect of a change in accounting principle (0.7) 6.3 5.2
Provision for income taxes 0.4 2.6 2.1
Earnings (loss) before cumulative effect of a change
in accounting principle ( 1.1 ) 3.7 3.1
Cumulative effect of a change in accounting principle -- ( 0.1 ) --
Net earnings (loss) ( 1.1 )% 3.6 % 3.1 %