Barnes and Noble 2012 Annual Report Download - page 42

under the  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  Credit
Agreement). In addition, the Company had the option
to request the increase in commitments under the 
Credit Agreement by up to ,, subject to certain
restrictions.
Selected information related to the Company’s 
Amended Credit Facility,  Amended Credit Facility and
 Credit Facility:
Fiscal 2012 Fiscal 2011 Fiscal 2010
Credit facility at period end $ 324,200 313,100 260,400
Average balance outstanding
during the period $ 306,038 338,971 107,504
Maximum borrowings
outstanding during the period $ 582,000 622,800 512,500
Weighted average interest
rate during the period 3.34% 4.30% 4.38%
Interest rate at end of period 3.32% 5.13% 4.13%
Fees expensed with respect to the unused portion of the
 Amended Credit Facility,  Amended Credit
Facility and  Credit Facility were ,, ,
and , during fi scal , fi scal  and fi scal ,
respectively.
The Company has no agreements to maintain compensat-
ing balances.
3. STOCK-BASED COMPENSATION
The Company maintains three share-based incentive
plans: the  Incentive Plan, the  Incentive Plan
and the  Incentive Plan. Prior to June , , the
Company issued restricted stock and stock options under
the  and  Incentive Plans. On June , , the
Company’s shareholders approved the  Incentive Plan.
Under the  Incentive Plan, the Company has issued
restricted stock units, restricted stock and stock options.
The maximum number of shares issuable under the 
Incentive Plan is ,, plus shares that remain avail-
able under the Company’s shareholder-approved 
Incentive Plan. At April , , there were approximately
,, shares of common stock available for future
grants under the  Incentive Plan.
A restricted stock award is an award of common stock that
is subject to certain restrictions during a specifi ed period.
Restricted stock awards are independent of option grants
and are generally subject to forfeiture if employment ter-
minates prior to the release of the restrictions. The grantee
cannot transfer the shares before the restricted shares vest.
Shares of unvested restricted stock have the same voting
rights as common stock, are entitled to receive dividends
and other distributions thereon and are considered to be
currently issued and outstanding. The Company’s restricted
stock awards vest over a period of one to fi ve years. The
Company expenses the cost of the restricted stock awards,
which is determined to be the fair market value of the
shares at the date of grant, straight-line over the period
during which the restrictions lapse. For these purposes,
the fair market value of the restricted stock is determined
based on the closing price of the Company’s common stock
on the grant date.
A restricted stock unit is a grant valued in terms of the
Company’s common stock, but no stock is issued at the
time of grant. The restricted stock units may be redeemed
for one share of common stock each once vested. Restricted
stock units are generally subject to forfeiture if employ-
ment terminates prior to the release of the restrictions.
The grantee cannot transfer the units except in very limited
circumstances and with the consent of the compensation
committee. Shares of unvested restricted stock units have
no voting rights but are entitled to receive dividends and
other distributions thereon. The Company’s restricted
stock units vest over a period of one to fi ve years. The
Company expenses the cost of the restricted stock units,
which is determined to be the fair market value of the
shares at the date of grant, straight-line over the period
during which the restrictions lapse. For these purposes,
the fair market value of the restricted stock is determined
based on the closing price of the Company’s common stock
on the grant date.
The Company uses the Black-Scholes option-pricing model
to value the Company’s stock options for each stock option
award. Using this option-pricing model, the fair value of
each stock option award is estimated on the date of grant.
The fair value of the Company’s stock option awards, which
are generally subject to pro-rata vesting annually over four
years, is expensed on a straight-line basis over the vesting
period of the stock options. The expected volatility assump-
tion is based on traded options volatility of the Company’s
stock over a term equal to the expected term of the option
granted. The expected term of stock option awards granted
is derived from historical exercise experience under the
40 Barnes & Noble, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued