Barnes and Noble 2003 Annual Report Download - page 14

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The following table sets forth, for the periods indicated, the percentage relationship that certain items bear to total sales
of the Company:
Fiscal Year 2003 2002 2001
Sales 100.0% 100.0% 100.0%
Cost of sales and occupancy 72.7 73.0 73.1
Gross margin 27.3 27.0 26.9
Selling and administrative expenses 18.9 18.5 18.6
Legal settlement expense -- -- 0.1
Depreciation and amortization 2.7 2.8 3.0
Pre-opening expenses 0.1 0.2 0.2
Impairment charge -- 0.5 --
Operating margin 5.6 5.0 5.0
Interest expense, net and amortization of deferred financing fees ( 0.4) ( 0.4) ( 0.8)
Equity in net loss of Barnes & Noble.com ( 0.2) ( 0.5) (1.8)
Other expense -- ( 0.3) ( 0.2)
Earnings before income taxes and minority interest 5.0 3.8 2.2
Income taxes 2.0 1.5 0.9
Income before minority interest 3.0 2.3 1.3
Minority interest ( 0.4) (0.4) --
Net earnings 2.6% 1.9% 1.3%
(1) Fiscal 2002 operating profit is net of a non-cash
impairment charge of $25,328. Fiscal 2001
operating profit is net of legal and settlement
expenses of $4,500.
(2) 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 and GameStop stores are determined using
stores open at least 12 months.
13
2003 Annual Report Barnes & Noble, Inc.
[MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS continued ]