Barnes and Noble 2013 Annual Report Download - page 25

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Contractual Obligations
The following table sets forth the Company’s contractual obligations as of April 27, 2013 (in millions):
Contractual Obligations Payments Due by Period
Total Less Than 1 Year 1-3 Years 3-5 Years
More Than
5 Years
Long-term debt $ 77.0 $ — $ — $ 77.0 $ —
Capital lease obligations 2.0 1.0 1.0 — —
Operating lease obligationsa1,837.0 413.8 642.6 436.7 343.9
Purchase obligationsb133.0 99.0 31.6 2.4 —
Interest obligationsc33.3 17.9 15.4 — —
Other long-term liabilities reflected on the
Company’s balance sheet under GAAPd127.3 — 127.3 — —
Total $ 2,209.6 $ 531.7 $ 817.9 $ 516.1 $ 343.9
a Excludes obligations under store leases for insurance, taxes and other maintenance costs, which obligations totaled approximately 16% of the mini-
mum rent payments under those leases.
b Includes hardware and software maintenance contracts and inventory purchase commitments.
c Represents commitment fees related to the Company’s 2013 Amended Credit Facility and interest obligations on the Seller Notes issued in connection
with the Acquisition.
d Excludes $31.5 million of unrecognized tax benefits for which the Company cannot make a reasonably reliable estimate of the amount and period of
payment. See Note 10 to the Notes to Consolidated Financial Statements.
See also Note 9 to the Notes to Consolidated Financial Statements for information concerning the Company’s Pension and
Postretirement Plans.
Off-Balance Sheet Arrangements
As of April 27, 2013, the Company had no off-balance sheet
arrangements as defined in Item 303 of Regulation S-K.
Impact of Inflation
The Company does not believe that inflation has had a
material effect on its net sales or results of operations.
CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS
See Note 21 to the Notes to Consolidated Financial
Statements.
CRITICAL ACCOUNTING POLICIES
The “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” section of this
report discusses the Company’s consolidated financial
statements, which have been prepared in accordance with
accounting principles generally accepted in the United
States. The preparation of these financial statements
requires management to make estimates and assumptions
in certain circumstances that affect amounts reported in
the accompanying consolidated financial statements and
related footnotes. In preparing these financial statements,
management has made its best estimates and judgments
with respect to certain amounts included in the financial
statements, giving due consideration to materiality. The
Company does not believe there is a great likelihood that
materially different amounts would be reported related to
the accounting policies described below. However, applica-
tion of these accounting policies involves the exercise of
judgment and use of assumptions as to future uncertain-
ties and, as a result, actual results could differ from these
estimates.
Revenue Recognition
Revenue from sales of the Company’s products is recog-
nized at the time of sale or shipment, other than those
with multiple elements and FOB destination point ship-
ping terms. Certain of the Company sales agreements with
these distribution partners contain rights of inspection
or acceptance provisions as is standard in the Company’s
industry. The Company accrues for estimated sales returns
in the period in which the related revenue is recognized
based on historical experience and industry standards.
2013 Annual Report 23