Barnes and Noble 2008 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 of the 2008 Barnes and Noble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 50

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50

In July 2006, the Financial Accounting Standards Board
issued FASB Interpretation No. 48, Accounting for
Uncertainty in Income Taxes (FIN 48). FIN 48 clarifi es
the accounting for uncertain income tax positions that
are recognized in a company’s fi nancial statements in
accordance with the provisions of FASB Statement No.
109, Accounting for Income Taxes (SFAS 109). FIN 48 also
provides guidance on the derecognition of uncertain
positions, fi nancial statement classifi cation, account-
ing for interest and penalties, accounting for interim
periods and new disclosure requirements. FIN 48 is
eff ective for fi scal years beginning after December 15,
2006.
The Company adopted FIN 48 as of February 4, 2007.
The adoption of FIN 48 did not result in any adjustments
to the Company’s reserves for uncertain tax positions.
As of January 31, 2009, the Company had $23,833 of
unrecognized tax benefi ts, all of which, if recognized,
would aff ect the Company’s eff ective tax rate. A recon-
ciliation of the beginning and ending amount of unrec-
ognized tax benefi ts for fi scal 2007 and fi scal 2008 is as
follows:
Balance at February 3, 2007 $ 23,155
Additions for tax positions of the current period 853
Additions for tax positions of prior periods 7,022
Expiration of statute of limitations (10,294)
Settlements paid during the current period (1,303)
Other reductions for tax positions of prior periods (487)
Balance at February 2, 2008 $ 18,946
Additions for tax positions of the current period 455
Additions for tax positions of prior periods 5,000
Expiration of statute of limitations (329)
Settlements paid during the current period (55)
Other reductions for tax positions of prior periods (184)
Balance at January 31, 2009 $ 23,833
The Company’s continuing practice is to recognize
interest and penalties related to income tax matters
in income tax expense. As of January 31, 2009, the
Company had accrued $6,349 for interest and penalties,
which is included in the $23,833 of unrecognized tax
benefi ts noted above. The Company recognized $2,482
in income tax expense for interest and penalties in its
fi scal 2008 statement of operations.
The Company is subject to U.S. federal income tax as
well as income tax in jurisdictions of each state having an
income tax. The tax years that remain subject to examina-
tion are primarily fi scal 2004 through fi scal 2008. Some
earlier years remain open for a small minority of states.
Prior to fi scal 2006, the Company had a fi scal tax year
ending in October.
2008 Annual Report 33