Barnes and Noble 2012 Annual Report Download - page 18

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• NOOK selling and administrative expenses decreased as
a percentage of sales to . in fi scal  from .
in fi scal . This decrease was primarily attributable to
the leveraging of expenses on the increased sales.
Depreciation and Amortization
52 weeks ended
Dollars in thousands
April 28,
2012 % Sales
April 30,
2011 % Sales
B&N Retail $ 162,693 3.4% $ 164,934 3.3%
B&N College 45,343 2.6% 43,148 2.4%
NOOK 24,631 4.6% 20,565 7.0%
Total Depreciation
and Amortization $ 232,667 3.3% $ 228,647 3.3%
Depreciation and amortization increased . million, or
., to . million in fi scal  from . million
in fi scal . This increase was primarily attributable due
to amortization of intellectual property assets purchased
from Borders and additional capital expenditures.
Operating Profi t (Loss)
52 weeks ended
Dollars in thousands
April 28,
2012 % Sales
April 30,
2011 % Sales
B&N Retail $ 154,436 3.2% $ 94,132 1.9%
B&N College 70,604 4.0% 70,298 4.0%
NOOK (286,343) (53.8)% (229,689) (78.2)%
Total Operating Loss $ (61,303) (0.9)% $ (65,259) (0.9)%
The Company’s consolidated operating loss decreased .
million, or ., to an operating loss of . million in
fi scal  from an operating loss of . million in fi scal
. This decrease was due to the matters discussed above.
Interest Expense, Net and Amortization of Deferred
Financing Fees
52 weeks ended
Dollars in thousands April 28 , 2012 April 30, 2011 % of Change
Interest Expense, Net and
Amortization of Deferred
Financing Fees $ 35,304 $ 57,350 (38.4)%
Net interest expense and amortization of deferred fi nancing
fees decreased . million, to . million in fi scal 
from . million in fi scal . This decrease was primar-
ily due to more favorable rates on the  Amended Credit
Facility under the Company’s credit facility, lower borrow-
ings driven by the Liberty investment, payment of short-
term note in December  and a . million write-off of
deferred fi nancing fees in the prior fi scial year related to the
amendment of the Company’s credit facility.
Income Taxes
52 weeks ended
Dollars in thousands
April 28,
2012
Effective
Rate
April 30,
2011
Effective
Rate
Income Taxes $ (27,740) 28.7% $ (48,652) 39.7%
Income tax benefi t in fi scal  was . million compared
with income tax benefi t of . million in fi scal . The
Company’s eff ective tax rate decreased to . in fi scal
 compared with . in fi scal . The lower eff ec-
tive tax rate in fi scal  was due primarily to additions
to the tax reserve and a permanent tax charge related to
current and prior year compensation.
Net Loss Attributable to Noncontrolling Interests
Net loss attributable to noncontrolling interests was .
million in fi scal  and relates to the  outside inter-
est in Begin Smart LLC (Begin Smart).
During fi scal , the Company purchased the remaining
 outside interest in Begin Smart LLC for . million.
 of Begin Smart results of operations for the period
subsequent to the Begin Smart acquisition date were
included in the consolidated fi nancial statements.
Net Earnings (Loss) Attributable to Barnes & Noble, Inc.
52 weeks ended
Dollars in thousands
April 28,
2012
Diluted
EPS
April 30,
2011
Diluted
EPS
Net Loss Attributable
to Barnes & Noble, Inc. $ (68,867) $ (1.41) $ (73,920) $ (1.31)
As a result of the factors discussed above, the Company
reported a consolidated net loss of . million (or .
per diluted share) during fi scal , compared with
consolidated net loss of . million (or . per diluted
share) during fi scal .
16 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued