Barnes and Noble 2000 Annual Report Download - page 51

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Selected information related to the Company’s
Revolving Credit Facility and seasonal credit facility is as
follows:
Fiscal Year 2000 1999 1998
Balance at end of year $ 666,900 431,600 249,100
Average balance outstanding
during the year $ 697,832 397,114 380,315
Maximum borrowings
outstanding during
the year $ 918,700 693,500 535,000
Weighted average interest
rate during the year 7.57% 6.01% 6.29%
Interest rate at end of year 6.01% 6.26% 5.77%
Fees expensed with respect to the unused portion of the
Company’s revolving credit commitment were $272, $664
and $733, during fiscal 2000, 1999 and 1998, respectively.
The amounts outstanding under the Company’s
Revolving Credit Facility have been classified as long-
term debt based on the terms of the credit agreement and
the Company’s intention to maintain principal amounts
outstanding.
Additionally, in March of 2001, the Company announced
the successful completion of the sale of $300,000 5.25
percent convertible subordinated notes due March 15,
2009. The notes are convertible into the Company’s
common stock at a conversion price of $32.51 per share.
The Company has no agreements to maintain
compensating balances.
4. FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying values of cash and cash equivalents
reported in the accompanying consolidated balance
sheets approximate fair value due to the short-term
maturities of these assets. The aggregate fair value of the
Revolving Credit Facility approximates its carrying
amount, because of its recent and frequent repricing
based upon market conditions. Investments in publicly
traded securities accounted for under SFAS 115 are
carried at amounts approximating fair value.
Interest rate swap agreements are valued based on
market quotes obtained from dealers. The carrying value
and estimated fair value of the interest rate swaps asset
(liability) was $0 and ($542), respectively, at February 3,
2001, and $0 and $447, respectively, at January 29, 2000.
5. MARKETABLE EQUITY SECURITIES
Marketable equity securities are carried on the balance
sheet at their fair market value as a component of other
noncurrent assets. The following marketable equity
securities as of February 3, 2001 and January 29, 2000
have been classified as available-for-sale securities:
Gemstar
International Chapters
Ltd. Inc. Total
Cost $ 27,137 8,294 35,431
Fiscal 1999 unrealized losses ( 1,684 ) ( 353) ( 2,037)
Market value at
January 29, 2000 25,453 7,941 33,394
Fiscal 2000 unrealized losses ( 6,974 ) ( 1,019 ) ( 7,993 )
Market value at
February 3, 2001 $ 18,479 6,922 25,401
6. OTHER INCOME (EXPENSE)
The following table sets forth the components of other
income (expense), in thousands of dollars:
Fiscal Year 2000 1999 1998
iUniverse.com (1) $ ( 9,277 ) ( 2,121 ) --
Equity in net losses
of
BOOK
magazine (2) (127) -- --
Gain on sale of NuvoMedia (3) -- 22,356 --
Chapters (4) -- 10,874 1,140
Equity in net earnings
of Calendar Club (5) -- 1,228 2,274
Termination of planned
acquisition of Ingram
Book Group (6) -- ( 5,000 ) --
Other 58 -- --
$ ( 9,346 ) 27,337 3,414
47
2000 Annual Report ■Barnes & Noble, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued