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Net interest (expense) income and amortization of
deferred financing fees decreased $1.0 million, or 124.7%,
to ($0.2) million during the 13 weeks ended May 2, 2009
from $0.8 million during the 13 weeks ended May 3, 2008.
The decrease in interest income was primarily due to lower
investment rates.
Income Taxes
13 weeks ended
Dollars in thousands
May 2,
2009
Effective
Rate
May 3,
2008
Effective
Rate
Income Taxes $ (1,374) 39.9% $ (374) 39.8%
Income tax benefit during the 13 weeks ended May 2, 2009
was $1.4 million compared with $0.4 million during the 13
weeks ended May 3, 2008. The Company’s effective tax rate
was 39.9% and 39.8% for the 13 weeks ended May 2, 2009
and May 3, 2008, respectively.
Loss from Discontinued Operations
On February 25, 2009, the Company sold its interest in
Calendar Club to Calendar Club and its chief executive
officer for $7.0 million, which was comprised of $1.0
million in cash and $6.0 million in notes. As a result of
this transaction and the operating loss to the date of the
sale, the Company incurred a non-cash after-tax charge of
approximately $0.7 million during the 13 weeks ended May
2, 2009, compared with $1.7 million during the 13 weeks
ended May 3, 2008. Calendar Club is no longer a subsid-
iary of the Company and the results of Calendar Club have
been classified as discontinued operations in all periods
presented.
Net Loss Attributable to Noncontrolling Interests
Net loss attributable to noncontrolling interests was $0.03
million during the 13 weeks ended May 2, 2009 and relates
to the Company’s 50% outside interest in Begin Smart LLC.
Net Loss Attributable to Barnes & Noble, Inc.
13 weeks ended
Dollars in thousands
May 2,
2009
Diluted
EPS
May 3,
2008
Diluted
EPS
Net Loss Attributable to
Barnes & Noble, Inc. $ (2,693) $ (0.05) $ (2,224) $ (0.04)
As a result of the factors discussed above, the Company
reported a consolidated net loss of $2.7 million (or $0.05
per diluted share) during the 13 weeks ended May 2, 2009,
compared with a consolidated net loss of $2.2 million (or
$0.04 per diluted share) during the 13 weeks ended May 3,
2008.
52 WEEKS ENDED JANUARY 31, 2009 COMPARED
WITH 52 WEEKS ENDED FEBRUARY 2, 2008
Sales
The following table summarizes the Company’s sales for the
52 weeks ended January 31, 2009 and February 2, 2008:
52 weeks ended
Dollars in thousands
January 31,
2009 % Total
February 2,
2008 % Total
B&N Retail Segment
B&N Stores $ 4,525,020 88.3% $ 4,648,409 87.9%
B&N.com 466,082 9.1% 476,870 9.0%
Other 130,702 2.6% 161,395 3.1%
Total Sales $ 5,121,804 100.0% $ 5,286,674 100.0%
During fiscal 2008, the Company’s sales decreased $164.9
million, or 3.1%, to $5.12 billion from $5.29 billion during
fiscal 2007. This decrease was primarily attributable to the
following:
tBarnes & Noble store sales decreased $123.4 million, or
2.7%, during fiscal 2008 to $4.53 billion from $4.65 bil-
lion during fiscal 2007 and accounted for 88.3% of total
Company sales. The 2.7% decrease in Barnes & Noble
store sales was primarily attributable to a 5.2% decrease
in transaction volume driven by a decline in traffic
stemming from general economic conditions, which
contributed to a 5.4% decrease in comparable store sales
or $237.7 million, and closed stores that decreased sales
by $101.3 million, offset by new Barnes & Noble store
sales of $208.5 million. The 5.4% decrease in compa-
rable store sales was also due to a decrease in comparable
music and audio department sales caused by industry
trends toward electronic downloads.
tBarnes & Noble.com sales decreased $10.8 million, or
2.3%, during fiscal 2008 to $466.1 million from $476.9
million during fiscal 2007. This decrease was primarily
attributable to a 1.3% decrease in comparable sales or
$6.1 million. The 1.3% decrease in comparable sales was
primarily due to a decrease in traffic.
tOther includes B. Dalton sales. B. Dalton sales decreased
$17.0 million, or 20.1%, during fiscal 2008 to $67.5 mil-
lion from $84.5 million during fiscal 2007. This decrease
was primarily attributable to the closing of 33 B. Dalton
stores during fiscal 2008.
In fiscal 2008, the Company opened 35 Barnes & Noble
stores and closed 22, bringing its total number of Barnes
& Noble stores to 726 with 18.7 million square feet. The
18 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued