Barnes and Noble 2013 Annual Report Download - page 53

At April 27, 2013, and based on its tax year ended January
2013, the Company had federal and state net operating loss
carryforwards (NOLs) of approximately $67,000 that are
available to offset taxable income beginning in the current
period and that expire beginning in 2018 through 2022, the
utilization of which is limited to approximately $6,700 on
an annual basis. NOLs not used during a particular period
may be carried forward to future years, though not beyond
the expiration years. Additionally, the Company had
approximately $132,000 of state NOLs that have no annual
limitation and expire beginning in 2030 through 2031.
The Company had net federal and state tax credits totaling
$18,000, of which $11,000 has an indefinite life.
As of April 27, 2013, the Company had $31,460 of unrecog-
nized tax benefits, all of which, if recognized, would affect
the Company’s effective tax rate. A reconciliation of the
beginning and ending amount of unrecognized tax benefits
for fiscal 2013, fiscal 2012 and fiscal 2011 is as follows:
Balance at May 1, 2010 $ 15,268
Additions for tax positions of the current period 1,809
Additions for tax positions of prior periods 1,199
Reductions due to settlements (508)
Other reductions for tax positions of prior periods (1,053)
Balance at April 30, 2011 $ 16,715
Additions for tax positions of prior periods 993
Reductions due to settlements (228)
Other reductions for tax positions of prior periods (448)
Balance at April 28, 2012 $ 17,032
Additions for tax positions of the current period 3,189
Additions for tax positions of prior periods 16,931
Reductions due to settlements (924)
Other reductions for tax positions of prior periods (4,768)
Balance at April 27, 2013 $ 31,460
The Company’s continuing practice is to recognize inter-
est and penalties related to income tax matters in income
tax expense. As of April 27, 2013 and April 28, 2012, the
Company had accrued $6,593 and $3,919, respectively, for
net interest and penalties, which is included in the $31,460
and $17,032 of unrecognized tax benefits noted above. The
change in the amount accrued for net interest and penalties
includes $5,665 in additions for net interest and penalties
recognized in income tax expense in the Company’s fiscal
2013 statement of operations.
As of April 27, 2013, the Company has not provided for
deferred taxes on the excess of financial reporting over
the tax basis of investments in certain foreign subsidiar-
ies because we plan to reinvest such earnings indefinitely
outside the United States. If these earnings were repatri-
ated in the future, additional income and withholding tax
expense would be incurred. Due to complexities in the laws
of the foreign jurisdictions and the assumptions that would
have to be made, it is not practicable to estimate the total
amount of income taxes that would have to be provided on
such earnings.
The Company is subject to U.S. federal income tax as well as
income tax in jurisdictions of each state having an income
tax. The tax years that remain subject to examination are
primarily from fiscal 2007 and forward. Some earlier years
remain open for a small minority of states.
11. INTANGIBLE ASSETS AND GOODWILL
As of April 28, 2012
Amortizable intangible
assets Useful Life
Gross
Carrying
Amount
Accumulated
Amortization Total
Customer relationships 5-25 $ 271,938 $ (32,398) $ 239,540
Author contracts 10 18,461 (17,049) 1,412
Technology 5-10 5,850 (2,427) 3,423
Distribution contracts 10 8,325 (4,932) 3,393
Other 3-10 6,178 (4,628) 1,550
$ 310,752 $ (61,434) $ 249,318
Unamortizable
intangible assets
Trade name $ 293,400
Publishing contracts 21,336
$ 314,736
Total amortizable
and unamortizable
intangible assets $ 564,054
2013 Annual Report 51