Barnes and Noble 2012 Annual Report Download - page 41

to present components of other comprehensive income as
part of the statement of changes in stockholders’ equity.
The amendment requires that all non-owner changes
in stockholders’ equity be presented either in a single
continuous statement of comprehensive income or in two
separate but consecutive statements. The amendments do
not change the items that must be reported in other com-
prehensive income or when an item of other comprehen-
sive income must be reclassifi ed to net income. In addition,
the FASB issued ASU -, Deferral of the Eff ective Date
for Amendments to the Presentation of Reclassifi cations of
Items Out of Accumulated Other Comprehensive Income in
Accounting Standards Update No. 2011-05 (ASU -). ASU
- eff ectively defers only those changes in Update
- that relate to the presentation of reclassifi cation
adjustments out of accumulated other comprehensive
income. All other requirements in ASU - are not
aff ected by this update. These ASUs are eff ective for the
Company’s fi nancial statements for annual and interim
periods beginning on or after December ,  and must
be applied retrospectively. The Company has early adopted
both ASU - and ASU -.
In September , the FASB issued ASU -, Te st ing
Goodwill for Impairment (ASU -). ASU -
gives the Company the option to fi rst assess qualitative
factors to determine whether the existence of events or
circumstances leads to a determination that it is more
likely than not that the fair value of a reporting unit is less
than its carrying amount. If, after assessing the totality
of events or circumstances, the Company determines it
is not more likely than not that the fair value of a report-
ing unit is less than its carrying amount, then performing
the two-step impairment test is unnecessary. This ASU is
eff ective for the Company’s fi nancial statements for annual
and interim periods beginning on or after December ,
. The adoption is not expected to have an impact on the
Company’s Fiscal  Consolidated Financial Statements.
2. CREDIT FACILITY
On April , , the Company entered into an amend-
ment (the  Amended Credit Facility) to its existing
agreement with Bank of America, N.A. entered into on
April , , as administrative agent, collateral agent and
swing line lender, and other lenders in order to permit the
transactions contemplated by the investment agreement
among the Company, Morrison Investment Holdings, Inc.,
and Microsoft Corporation (See Note ) and to make cer-
tain other changes to the Company’s  Amended Credit
Agreement in connection therewith.
On April , , the Company entered into an amended
and restated credit agreement (the  Amended Credit
Agreement) with Bank of America, N.A., as administrative
agent, collateral agent and swing line lender, and other
lenders, which amended and restated the credit agreement
(the  Credit Agreement) entered into on September
,  with Bank of America, N.A., as administrative
agent, collateral agent and swing line lender, and other
lenders. Under the  Amended Credit Agreement,
Lenders provided up to ,, in aggregate commit-
ments under a fi ve-year asset-backed revolving credit
facility, which is secured by eligible inventory with the abil-
ity to include eligible real estate and accounts receivable
and related assets. Borrowings under the  Amended
Credit Agreement were limited to a specifi ed percentage of
eligible inventories and accounts receivable and accrued
interest, at the election of the Company, at Base Rate or
LIBO Rate, plus, in each case, an Applicable Margin (each
term as defi ned in the  Amended Credit Agreement).
In addition, the Company has the option to request an
increase in commitments under the  Amended
Credit Agreement by up to ,, subject to certain
restrictions.
The  Amended Credit Agreement requires Availability
(as defi ned in the  Amended Credit Agreement) to
be greater than the greater of (i)  of the Loan Cap (as
defi ned in the  Amended Credit Agreement) and (ii)
,. In addition, the  Amended Credit Agreement
contains covenants that limit, among other things, the
Company’s ability to incur indebtedness, create liens, make
investments, make restricted payments, merge or acquire
assets, and contains default provisions that are typical for
this type of fi nancing, among other things. Proceeds from
the  Amended Credit Facility are used for general cor-
porate purposes, including seasonal working capital needs.
As a result of the  Amended Credit Agreement, ,
of deferred fi nancing fees related to the  Credit
Facility were written off in fi scal , and included in net
interest expenses. The remaining unamortized deferred
costs of , and new charges of , relating to the
Company’s  Amended Credit Facility were deferred
and are being amortized over the fi ve-year term of the 
Amended Credit Facility.
On September , , the Company had entered into the
 Credit Agreement, under which the lenders commit-
ted to provide up to ,, in commitments under a
four-year asset-backed revolving credit facility (the 
Credit Facility), which was secured by eligible inventory
and accounts receivable and related assets. Borrowings
2012 Annual Report 39