Barnes and Noble 2011 Annual Report Download - page 44

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For fi scal 2011, fi scal 2010, the transition period and fi scal
2008, stock-based compensation expense of $20,978,
$15,723, $3,900 and $20,549, respectively, is included in
selling and administrative expenses.
4. RECEIVABLES, NET
Receivables represent customer, private and public
institutional and government billings, credit/debit card,
advertising, landlord and other receivables due within one
year as follows:
April 30, 2011 May 1, 2010
Trade accounts $ 81,577 46,723
Credit/debit card
receivables 42,982 40,079
Advertising 5,877 5,254
Receivables from
landlords for leasehold
improvements 867 3,206
Other receivables 18,991 11,314
Total receivables, net $ 150,294 106,576
5. OTHER LONG-TERM LIABILITIES
Other long-term liabilities consist primarily of deferred
rent and obligations under the Junior Seller Note (see
Notes 12 and 21). The Company provides for minimum
rent expense over the lease terms (including the build-out
period) on a straight-line basis. The excess of such rent
expense over actual lease payments (net of tenant allow-
ances) is classifi ed as deferred rent. Other long-term
liabilities also include accrued pension liabilities, store
closing expenses and long-term deferred revenues. The
Company had the following long-term liabilities at April
30, 2011 and May 1, 2010:
April 30, 2011 May 1, 2010
Deferred Rent $ 271,451 324,528
Junior Seller Note (see Note
12 and Note 21) 150,000 150,000
Other 27,196 31,375
Total long-term liabilities $ 448,647 505,903
6. FAIR VALUES OF FINANCIAL INSTRUMENTS
In accordance with ASC 820, Fair Value Measurements and
Disclosures, the fair value of an asset is considered to be
the price at which the asset could be sold in an orderly
transaction between unrelated knowledgeable and willing
parties. A liability’s fair value is defi ned as the amount that
would be paid to transfer the liability to a new obligor, not
the amount that would be paid to settle the liability with
the creditor. Assets and liabilities recorded at fair value
are measured using a three-tier fair value hierarchy, which
prioritizes the inputs used in measuring fair value. These
tiers include:
Level 1 – Observable inputs that refl ect quoted prices in
active markets
Level 2 – Inputs other than quoted prices in active markets
that are either directly or indirectly observable
Level 3 – Unobservable inputs in which little or no market
data exists, therefore requiring the Company to develop its
own assumptions
42 Barnes & Noble, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued