Barnes and Noble 2000 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2000 Barnes and Noble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

Under the terms of the November 12, 1998 joint venture agreement between the Company and Bertelsmann, the
Company received a $25,000 payment from Bertelsmann in connection with the IPO. The Company recognized the
$25,000 pre-tax gain in fiscal 1999. The estimated fair market values of the Company’s investment in Barnes
& Noble.com were $122,000 and $742,000 at February 3, 2001 and January 29, 2000, respectively.
Summarized financial information for Barnes & Noble.com follows:
12 months ended December 31,
2000 1999 1998
Net sales $ 320,115 193,730 61,834
Gross profit $ 58,314 33,793 14,265
Loss* $ ( 275,723 ) ( 102,404 ) ( 83,148 )
Cash and cash equivalents $ 212,304 478,047 96,940
Other current assets 80,332 27,567 14,736
Noncurrent assets 236,299 173,904 90,468
Current liabilities 135,987 75,940 32,995
Minority interest 284,494 482,896 --
Net assets $ 108,454 120,682 169,149
*Includes impairment charge of $75,051 in 2000.
8. EMPLOYEES’ RETIREMENT AND DEFINED CONTRIBUTION PLANS
As of December 31, 1999, substantially all employees of the Company were covered under a noncontributory defined
benefit pension plan (the Pension Plan). As of January 1, 2000, the Pension Plan was amended so that employees no
longer earn benefits for subsequent service. Subsequent service continues to be the basis for vesting of benefits not yet
vested at December 31, 1999 and the Pension Plan will continue to hold assets and pay benefits. The amendment was
treated as a curtailment in fiscal 1999 resulting in a pre-tax gain of $14,142 which is included as a reduction of selling
and administrative expenses.
The Company maintains defined contribution plans (the Savings Plans) for the benefit of substantially all employees.
In addition, the Company provides certain health care and life insurance benefits (the Postretirement Plan) to retired
employees, limited to those receiving benefits or retired as of April 1, 1993.
A summary of the components of net periodic cost for the Pension Plan and the Postretirement Plan follows:
Pension Plan Postretirement Plan
Fiscal Year 2000 1999 1998 2000 1999 1998
Service cost $ -- 4,535 4,157 -- -- --
Interest cost 1,779 2,349 2,039 151 151 149
Expected return on plan assets (2,887 ) (2,494 ) ( 2,208 ) -- -- --
Net amortization and deferral -- 32 36 (104 ) (123) ( 135 )
Net periodic expense (income) $ ( 1,108 ) 4,422 4,024 47 28 14
Total Company contributions charged to employee benefit expenses for the Savings Plans were $5,681, $3,374 and $3,090
during fiscal 2000, 1999 and 1998, respectively.
49
2000 Annual Report ■Barnes & Noble, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued