Barnes and Noble 2003 Annual Report Download - page 9

(1) Fiscal 2003 includes the results of operations of
barnesandnoble.com llc (Barnes & Noble.com) from
September 15, 2003, the date the Company acquired a
controlling interest in Barnes & Noble.com. Prior to the
acquisition date, the Company accounted for the results
of Barnes & Noble.com under the equity method of
accounting. See footnote 8 to the Notes to Consolidated
Financial Statements.
(2) Fiscal 2000 includes the results of operations of Funco,
Inc. from June 14, 2000, the date of acquisition. In fiscal
2000, the Company acquired a controlling interest in
Calendar Club L.L.C. (Calendar Club). The Company’s
consolidated statement of operations includes the results
of operations of Calendar Club. Prior to fiscal 2000, the
Company included its equity in the results of operations of
Calendar Club as a component of other income (expense).
(3) Fiscal 1999 includes the results of operations of Babbage’s
Etc. LLC from October 28, 1999, the date of acquisition.
(4) Includes primarily Sterling Publishing Co., Inc. and Calendar
Club.
(5) Represents legal and settlement costs associated with the
lawsuit brought by the American Booksellers Association.
(6) In fiscal 2002, the Company recorded a non-cash charge
to operating earnings to write down its investments in
Gemstar-TV Guide International, Inc. (Gemstar) and
Indigo Books & Music Inc. (Indigo) to their fair market
value. In fiscal 2000, the Company recorded a non-cash
charge to adjust the carrying value of certain assets,
primarily goodwill relating to the purchase of B. Dalton
and other mall-bookstore assets.
(7) Interest expense for fiscal 2003, 2002, 2001, 2000 and
1999 is net of interest income of $2,193, $3,499, $1,319,
$939 and $1,449, respectively.
(8) In fiscal 1999, the Company recognized a gain on the
formation of Barnes & Noble.com in connection with the
joint venture agreement with Bertelsmann AG. See
footnote 8 to the Notes to Consolidated Financial
Statements.
(9) In fiscal 2002, the Company determined that a decrease
in value in certain of its equity investments occurred
which was other than temporary. As a result, other
expense of $16,498 in fiscal 2002 includes the recognition
of losses of $11,485 in excess of what would otherwise
have been 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 $16,498 loss in other expense
was primarily comprised of $8,489 attributable to
iUniverse.com, $5,081 attributable to BOOK®magazine
and $2,351 attributable to enews, inc. Included in other
expense in fiscal 2001 are losses of $12,066 from the
Company’s equity investments. Included in other expense in
fiscal 2000 are losses of $9,730 from the Company’s equity
investments. Included in other income in fiscal 1999 are
pre-tax gains of $22,356 and $10,975 recognized in
connection with the Company’s investments in Gemstar
and Indigo, respectively, as well as a charge of $5,000
attributable to the termination of the Ingram Book Group
acquisition and losses from equity investments of $994.
(10) During fiscal 2002, the Company completed an IPO for its
GameStop subsidiary which resulted in the Company
retaining an approximate 63 percent economic interest in
GameStop. At the end of fiscal 2003, the Company’s
economic interest in GameStop was approximately 64
percent.
(11) Comparable store sales increase (decrease) is calculated
on a 52-week basis, and includes sales of stores that have
been open for 15 months for Barnes & Noble stores (due
to the high sales volume associated with grand openings)
and 12 months for B. Dalton and GameStop stores.
[ SELECTED CONSOLIDATED FINANCIAL DATA continued ]
8 2003 Annual ReportBarnes & Noble, Inc.