Barnes and Noble 2014 Annual Report Download - page 44

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customer markdowns and operational chargebacks, net
of the expected recoveries, are part of the provision for
allowances included in accounts receivable. These provi-
sions result from seasonal negotiations, as well as historic
deduction trends net of expected recoveries, and the evalu-
ation of current market conditions.
Reclassifications
Certain prior-period amounts have been reclassified for
comparative purposes to conform with the fiscal 
presentation.
Recent Accounting Pronouncements
In May , the FASB issued Accounting Standard Update
No. -, Revenue from Contracts with Customers (ASU
-). The standard provides companies with a single
model for use in accounting for revenue arising from
contracts with customers and supersedes current revenue
recognition guidance, including industry-specific revenue
guidance. The core principle of the model is to recognize
revenue when control of the goods or services transfers to
the customer, as opposed to recognizing revenue when the
risks and rewards transfer to the customer under the exist-
ing revenue guidance. ASU - is effective for annual
reporting periods beginning after December , . Early
adoption is not permitted. The guidance permits compa-
nies to either apply the requirements retrospectively to all
prior periods presented, or apply the requirements in the
year of adoption, through a cumulative adjustment. The
Company has not yet selected a transition method nor has
it determined the impact of adoption on its consolidated
financial statements.
Reporting Period
The Company’s fiscal year is comprised of  or  weeks,
ending on the Saturday closest to the last day of April. The
reporting period ended May ,  contained  weeks,
and the reporting periods April ,  and April , 
contained  weeks.
2. CREDIT FACILITY
The Company is party to an amended and restated credit
facility with Bank of America, N.A., as administrative
agent, collateral agent and swing line lender, and other
lenders, dated as of April ,  (as amended and
modified to date, the Credit Facility), consisting of up to
,, in aggregate commitments under a five-year
asset-backed revolving credit facility expiring on April ,
, which is secured by eligible inventory and accounts
receivable with the ability to include eligible real estate
and related assets. Borrowings under the Credit Facility are
limited to a specified 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 defined in the
Credit Facility). In addition, the Company has the option
to request an increase in commitments under the Credit
Facility by up to ,, subject to certain restrictions.
The Credit Facility requires Availability (as defined in the
Credit Facility) to be greater than the greater of (i) 
of the Loan Cap (as defined in the Credit Facility) and (ii)
,. In addition, the Credit Facility 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 financing,
among other things. Proceeds from the Credit Facility are
used for general corporate purposes, including seasonal
working capital needs.
The Company had no outstanding debt under the Credit
Facility as of May ,  and . million as of April ,
.
Selected information related to the Company’s credit
facilities:
Fiscal 2014 Fiscal 2013 Fiscal 2012
Credit facility at period
end $ — 77,000 324,200
Average balance
outstanding during the
period $ 48,254 214,702 306,038
Maximum borrowings
outstanding during the
period $ 180,300 462,900 582,000
Weighted average
interest rate during the
perioda15.65% 5.56% 4.71%
Interest rate at end of
period 0.00% 4.93% 3.32%
a Includes commitment fees.
Fees expensed with respect to the unused portion of the
credit facilities were ,, , and , during
fiscal , fiscal  and fiscal , respectively. The
Company had , of outstanding letters of credit under
the  Amended Credit Facility as of May ,  com-
pared with , as of April , .
42 Barnes & Noble, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued