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[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
42
2002 Annual ReportBarnes & Noble, Inc.
A reconciliation of operating profit from reportable segments to earnings before income taxes and cumulative effect of
a change in accounting principle in the consolidated financial statements is as follows:
Fiscal Year 2002 2001 2000
Reportable segments operating profit $ 264,112 245,787 133,826
Interest, net ( 21,506 ) ( 36,334 ) ( 53,541 )
Equity in net loss of Barnes & Noble.com ( 26,795 ) ( 88,378 ) ( 103,936 )
Other expense ( 16,498 ) ( 11,730 ) ( 9,346 )
Consolidated earnings (loss) before income taxes
and minority interest $ 199,313 109,345 ( 32,997 )
14. COMPREHENSIVE EARNINGS (LOSS)
Comprehensive earnings are net earnings, plus certain other items that are recorded directly to shareholders’ equity.
The only such items currently applicable to the Company are the unrealized losses on available-for-sale securities and
derivative instruments, as follows:
Fiscal Year 2002 2001 2000
Net earnings (loss) $ 99,948 63,967 ( 51,966 )
Other comprehensive loss:
Unrealized loss on available-for-sale securities (net of deferred
tax benefit of $1,292, $5,437 and $3,317, respectively) ( 1,859 ) ( 7,665 ) ( 4,676 )
Less: reclassification adjustment (net of deferred income tax
expense of $10,465, $395 and $0, respectively) 14,809 556 --
12,950 ( 7,109 ) ( 4,676 )
Unrealized loss on derivative instrument (net of deferred
tax of $931, $936 and $0, respectively) 1,316 (1,320 ) --
Minimum pension liability (net of deferred tax benefit of $7,429) ( 11,027) -- --
Total comprehensive earnings (loss) $ 103,187 55,538 ( 56,642 )
15. SHAREHOLDERS’ EQUITY
In fiscal 1999, the Board of Directors authorized a common stock repurchase program for the purchase of up to
$250,000 of the Company’s common shares. As of February 1, 2003, the Company has repurchased 8,502,700 shares
at a cost of approximately $181,391 under this program. The repurchased shares are held in treasury.
Each share of the Company’s Common Stock also entitles the holder to the right (the Right) to purchase one four-
hundredth of a share of the Company’s Series H Preferred Stock for $225. The Right is only exercisable if a person or
group acquires 15 percent or more of the Company’s outstanding Common Stock or announces a tender offer or
exchange offer, the consummation of which would result in such person or group owning 15 percent or more of the
Company’s outstanding Common Stock.