Barnes and Noble 2007 Annual Report Download - page 33

NET EARNINGS PER SHARE7.
Following is a reconciliation of net earnings and
weighted average common shares outstanding for
purposes of calculating basic and diluted earnings per
share:
FISCAL YEAR 2007 2006 2005
NUMERATOR:
Net earnings $ 135,799 150,527 146,681
DENOMINATOR:
Basic weighted average
common shares outstanding 63,662 65,212 67,560
Dilutive effect of stock
awards 3,388 4,014 4,590
Diluted outstanding shares 67,050 69,226 72,150
EARNINGS PER
COMMON SHARE
Basic $ 2.13 2.31 2.17
Diluted $ 2.03 2.17 2.03
EMPLOYEES’ RETIREMENT AND DEFINED 8.
CONTRIBUTION PLANS
As of December , , substantially all employees
of the Company were covered under a noncontributory
defi ned benefi t pension plan (the Pension Plan). As
of January , , the Pension Plan was amended so
that employees no longer earn benefi ts for subsequent
service. Eff ective December , , the Barnes &
Noble.com Employees’ Retirement Plan (the B&N.com
Retirement Plan) was merged with the Pension Plan.
Substantially all employees of Barnes & Noble.com were
covered under the B&N.com Retirement Plan. As of July
, , the B&N.com Retirement Plan was amended so
that employees no longer earn benefi ts for subsequent
service. Subsequent service continues to be the basis for
vesting of benefi ts not yet vested at December , 
and June ,  for the Pension Plan and the B&N.
com Retirement Plan, respectively, and the Pension
Plan will continue to hold assets and pay benefi ts. The
actuarial assumptions used to calculate pension costs are
reviewed annually. Pension expense was ,  and
, for fi scal ,  and , respectively.
The Company maintains a defi ned contribution plan
(the Savings Plan) for the benefi t of substantially all
employees. Total Company contributions charged to
employee benefi t expenses for the Savings Plan were
,, , and , during fi scal , 
and , respectively. In addition, the Company
provides certain health care and life insurance benefi ts
(the Postretirement Plan) to retired employees, limited
to those receiving benefi ts or retired as of April , .
Total Company contributions charged to employee
benefi t expenses for the Postretirement Plan were
,  and  during fi scal ,  and ,
respectively.
INCOME TAXES 9.
The Company fi les a consolidated federal return with
all subsidiaries owned  or more. Federal and state
income tax provisions (benefi ts) for fi scal , 
and  are as follows:
FISCAL YEAR 2007 2006 2005
CURRENT:
Federal $ 52,283 85,179 90,738
State 13,041 16,059 9,379
Total current 65,324 101,238 100,117
DEFERRED:
Federal 10,687 703 (6,638)
State 906 665 8,563
Total deferred 11,593 1,368 1,925
Total $ 76,917 102,606 102,042
A reconciliation between the eff ective income tax rate
and the federal statutory income tax rate is as follows:
FISCAL YEAR 2007 2006 2005
Federal statutory income tax
rate 35.00% 35.00% 35.00%
State income taxes, net of
federal income tax benefi t 4.21 4.27 4.54
Expiration of statute of
limitations (4.78) ——
Other, net 1.30 0.98 1.21
Effective income tax rate 35.73% 40.25% 40.75%
NET EARNINGS PER SHARE7.
Following is a reconciliation of net earnings and
weighted average common shares outstanding for
purposes of calculating basic and diluted earnings per
share:
FISCAL YEAR 2007 2006 2005
NUMERATOR:
Net earnings $ 135,799 150,527 146,681
DENOMINATOR:
Basic weighted average
common shares outstanding 63,662 65,212 67,560
Dilutive effect of stock
awards 3,388 4,014 4,590
Diluted outstanding shares 67,050 69,226 72,150
EARNINGS PER
COMMON SHARE
Basic $ 2.13 2.31 2.17
Diluted $ 2.03 2.17 2.03
EMPLOYEES’ RETIREMENT AND DEFINED 8.
CONTRIBUTION PLANS
As of December , , substantially all employees
of the Company were covered under a noncontributory
defined benefit pension plan (the Pension Plan). As
of January , , the Pension Plan was amended so
that employees no longer earn benefits for subsequent
service. Effective December , , the Barnes &
Noble.com Employees’ Retirement Plan (the B&N.com
Retirement Plan) was merged with the Pension Plan.
Substantially all employees of Barnes & Noble.com were
covered under the B&N.com Retirement Plan. As of July
, , the B&N.com Retirement 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 , 
and June ,  for the Pension Plan and the B&N.com
Retirement Plan, respectively, and the Pension Plan will
continue to hold assets and pay benefits. The actu-
arial assumptions used to calculate pension costs are
reviewed annually. Pension expense was ,  and
, for fiscal ,  and , respectively.
The Company maintains a defined contribution plan
(the Savings Plan) for the benefit of substantially all
employees. Total Company contributions charged to
employee benefit expenses for the Savings Plan were
,, , and , during fiscal , 
and , respectively. 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 , .
Total Company contributions charged to employee
benefit expenses for the Postretirement Plan were
,  and  during fiscal ,  and ,
respectively.
INCOME TAXES 9.
The Company files a consolidated federal return with
all subsidiaries owned  or more. Federal and state
income tax provisions (benefits) for fiscal , 
and  are as follows:
FISCAL YEAR 2007 2006 2005
CURRENT:
Federal $ 52,283 85,179 90,738
State 13,041 16,059 9,379
Total current 65,324 101,238 100,117
DEFERRED:
Federal 10,687 703 (6,638)
State 906 665 8,563
Total deferred 11,593 1,368 1,925
Total $ 76,917 102,606 102,042
A reconciliation between the effective income tax rate
and the federal statutory income tax rate is as follows:
FISCAL YEAR 2007 2006 2005
Federal statutory income tax
rate 35.00% 35.00% 35.00%
State income taxes, net of
federal income tax benefit 4.21 4.27 4.54
Expiration of statute of
limitations (4.78) ——
Other, net 1.30 0.98 1.21
Effective income tax rate 35.73% 40.25% 40.75%
200 Annual7 Report 31