Barnes and Noble 2002 Annual Report Download - page 35

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5. OTHER EXPENSE
The following table sets forth the components of other
expense, in thousands of dollars:
Fiscal Year 2002 2001 2000
iUniverse.com
(1)(2)
$(8,489 ) ( 3,985 ) ( 9,277 )
Equity in net losses of
BOOK
®
magazine
(2)(3)
(5,081 ) ( 2,500 ) ( 127 )
Equity in net losses of
enews, inc.
(2)(4)
(2,351 ) ( 5,581 ) --
Other ( 577 ) 336 58
Total other expense $ ( 16,498 ) ( 11,730 ) ( 9,346 )
(1) The Company has a 22 percent ownership interest in
iUniverse.com. This investment is being accounted for
under the equity method.
(2) During fiscal 2002, the Company determined that a
decrease in value of its investment occurred which is other
than temporary. This resulted in the recognition of losses
in excess of what would otherwise be recognized by
application of the equity method in accordance with
Accounting Principles Board Opinion No. 18, “The
Equity Method of Accounting for Investments in Common
Stock.” The investment balance is $0 at February 1, 2003.
(3) The Company has a 50 percent interest in BOOK®magazine.
This investment is being accounted for under the equity
method.
(4) The Company has a 49 percent interest in enews, inc. This
investment is being accounted for under the equity method.
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
34
2002 Annual ReportBarnes & Noble, Inc.
6. 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 1, 2003 and February 2, 2002 have been
classified as available-for-sale securities:
Fiscal 2002
Gemstar Indigo Books &
International Ltd. Music Inc. Total
Carrying value $ 27,137 2,558 29,695
Impairment charge ( 23,828 ) ( 1,500 ) ( 25,328 )
Realized loss on sale of investment ( 3,309 ) ( 279 ) ( 3,588 )
Unrealized loss -- ( 61 ) ( 61 )
Market value at February 1, 2003 $ -- 718 718
Fiscal 2001
Gemstar Indigo Books & Music Inc.
International Ltd. (formerly Chapters Inc.) Total
Carrying value $ 27,137 8,294 35,431
Partial sale of investment -- ( 5,736 ) ( 5,736 )
Unrealized loss ( 20,256 ) ( 1,926 ) ( 22,182 )
Market value at February 2, 2002 $ 6,881 632 7,513