Barnes and Noble 2014 Annual Report Download - page 47

The following table presents a summary of the Company’s
restricted stock unit activity:
NUMBER OF SHARES
(in thousands)
WEIGHTED AVERAGE
GRANT DATE FAIR
VALUE
Balance, April 28, 2012 964 $ 16.63
Granted 1,029 16.29
Vested (13) 15.31
Forfeited (102) 18.01
Balance, April 27, 2013 1,878 $ 16.38
Granted 2,469 15.12
Vested (497) 16.76
Forfeited (723) 17.13
Balance, May 3, 2014 3,127 $ 15.15
Total fair value of shares of restricted stock units that
vested during fiscal  and fiscal  were , and
, respectively. No restricted stock units were granted
prior to fiscal  and there were no vestings during fiscal
. As of May , , there was , of unrecognized
stock-based compensation expense related to nonvested
restricted stock units. That cost is expected to be recog-
nized over a weighted average period of . years.
For fiscal , fiscal  and fiscal , stock-based
compensation expense of ,, , and ,,
respectively, is included in selling and administrative
expenses.
4. RECEIVABLES, NET
Receivables represent customer, private and public
institutional and government billings, credit/debit card,
advertising, landlord and other receivables due within one
year as follows:
May 3, 2014 April 27, 2013
Trade accounts $ 54,375 $ 69,627
Credit/debit card
receivables 32,331 33,776
EBook settlement
receivablea28,117 –
Other receivables 29,158 45,966
Total receivables, net $ 143,981 $ 149,369
a The Company provided credits to eligible customers resulting from the
settlements reached with certain publishers in antitrust lawsuits filed
by various State Attorney Generals and private class plaintiffs regard-
ing the price of digital books. The Company’s customers were entitled
to $44.2 million in total credits as a result of the settlement, which is
funded by these publishers. If a customer’s credit is not used to make
a purchase within one year, the entire credit will expire. The Company
recorded estimated redemptions of $33.6 million as a receivable from
these publishers and a liability to its customers in March 2014. The
Company’s customers had activated $21.5 million in credits thus far as
of May 3, 2014.
5. OTHER LONG-TERM LIABILITIES
Other long-term liabilities consist primarily of deferred
rent, obligations under a Junior Seller Note related to the
acquisition of B&N College, the Microsoft Commercial
Agreement financing transaction (see Note  and ,
respectively) and tax liabilities and reserves. The Company
provides for minimum rent expense over the lease terms
(including the build-out period) on a straight-line basis.
The excess of such rent expense over actual lease pay-
ments (net of tenant allowances) is classified as deferred
rent. Other long-term liabilities include accrued pension
liabilities, store closing expenses and long-term deferred
revenues. The Company had the following long-term
liabilities at May ,  and April , :
May 3, 2014 April 27, 2013
Deferred rent $ 128,280 $ 149,934
Junior Seller Note (see Note
19) — 127,250
Microsoft Commercial
Agreement financing
transaction (see Note 11) 140,714 52,642
Tax liabilities and reserves 51,399 54,068
Other 46,596 36,052
Total long-term liabilities $ 366,989 $ 419,946
6. FAIR VALUES OF FINANCIAL INSTRUMENTS
In accordance with ASC , Fair Value Measurements and
Disclosures, the fair value of an asset is considered to be the
price at which the asset could be sold in an orderly transac-
tion between unrelated knowledgeable and willing parties.
A liability’s fair value is defined as the amount that would
be paid to transfer the liability to a new obligor, not the
amount that would be paid to settle the liability with the
creditor. Assets and liabilities recorded at fair value
2014 Annual Report 45