Barnes and Noble 2011 Annual Report Download - page 45

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The following table presents the changes in Level 3 contingent
consideration liability for the 52 weeks ended April 30, 2011:
Acquisition of Fictionwise
Beginning balance, May 1, 2010 $ 7,265
Payments (7,508)
Losses 243
Balance, April 30, 2011 $ —
Fair Value of Financial Instruments
The Company’s fi nancial instruments, other than those
presented in the disclosures above, include cash, receiv-
ables, other investments and accounts payable. The fair
values of cash, receivables, and accounts payable approxi-
mated carrying values because of the short-term nature of
these instruments. The Company believes that its Amended
Credit Facility approximates fair value since interest rates
are adjusted to refl ect current rates. The Company believes
that the terms and conditions of the remaining Seller Notes
is consistent with comparable market debt issues.
7. NET EARNINGS (LOSS) PER SHARE
In accordance with ASC 260-10-45, Share-Based Payment
Arrangements and Participating Securities and the Two-Class
Method, the Company’s unvested restricted shares and
shares issuable under the Company’s deferred compensa-
tion plan are considered participating securities. During
periods of net income, the calculation of earnings per share
for common stock are reclassifi ed to exclude the income
attributable to the unvested restricted shares and shares
issuable under the Company’s deferred compensation
plan from the numerator and exclude the dilutive impact
of those shares from the denominator. During periods of
net loss, no eff ect is given to the participating securities
because they do not share in the losses of the Company. Due
to the net loss during fi scal 2011 and the transition period,
participating securities in the amounts of 3,228 and 2,118,
respectively, were excluded in the calculation of earnings
per share using the two-class method for the transition
period because the eff ect would be antidilutive.
Fair Value Measurement Using
Description As of April 30, 2011
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
Signifi cant Other
Observable Inputs
(Level 2)
Signifi cant
Unobservable Inputs
(Level 3) Total Gains (Losses)
Contingent consideration
(See Note 14) $ ————(243)
Fair Value Measurement Using
Description As of May 1, 2010
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
Signifi cant Other
Observable Inputs
(Level 2)
Signifi cant
Unobservable Inputs
(Level 3) Total Gains (Losses)
Contingent consideration
(See Note 14) $ 7,265 — — 7,265 (1,712)
2011 Annual Report 43