Barnes and Noble 2015 Annual Report Download - page 53
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Pension Plan termination distribution date. Currently,
there is not enough information available to determine the
ultimate charge of the termination. The actuarial assump-
tions used to calculate pension costs are typically reviewed
annually. In light of the resolution to terminate the Pension
Plan, the assumptions used to calculate the pension costs
were reviewed during the weeks ended August , . In
addition, due to the required settlement, the assumptions
were again reviewed during the weeks ended January ,
.
The Company maintains a defined contribution plan (the
Savings Plan) for the benefit of substantially all employees.
Total Company contributions charged to employee benefit
expenses for the Savings Plan were ,, , and
, during fiscal , fiscal and fiscal ,
respectively. In addition, the Company provides certain
health care and life insurance benefits (the Postretirement
Plan) to certain retired employees, limited to those receiv-
ing benefits or retired as of April , . Total Company
contributions charged to employee benefit expenses for
the Postretirement Plan were , and during fiscal
, fiscal and fiscal , respectively.
9. INCOME TAXES
Income (loss) before income taxes for fiscal , fiscal
and fiscal are as follows:
Fiscal 2015 Fiscal 2014 Fiscal 2013
Domestic operations $ 111,302 3,952 (257,173)
Foreign operations 3,981 733 1,824
Total income (loss) before
taxes $ 115,283 4,685 (255,349)
Income tax provisions (benefits) for fiscal , fiscal
and fiscal are as follows:
Fiscal 2015 Fiscal 2014 Fiscal 2013
Current:
Federal $ 81,107 5,753 18,270
State 8,844 2,819 2,594
Foreign 1,314 156 486
Total current 91,265 8,728 21,350
Deferred:
Federal (41) 30,792 (93,684)
State (12,581) 12,433 (25,209)
Foreign 44 — —
Total deferred (12,578) 43,225 (118,893)
Total $ 78,687 51,953 (97,543)
Reconciliation between the effective income tax rate and
the federal statutory income tax rate is as follows:
Fiscal 2015 Fiscal 2014 Fiscal 2013
Federal statutory income
tax rate 35.0% 35.0% 35.0%
State income taxes, net of
federal income tax benefit 9.5 156.8 3.9
Changes to unrecognized tax
benefits 0.1 42.5 (5.7)
Excess executive
compensation 2.4 14.0 (1.8)
Meals and entertainment
disallowance 0.7 16.0 (0.2)
Research tax credits (2.4) (63.4) 7.4
Joint venture net loss
allocation 32.0 657.8 —
Change in valuation
allowance (11.3) 248.5 —
Other, net 2.3 1.7 (0.4)
Effective income tax rate 68.3% 1,108.9% 38.2%
The joint venture net loss allocation identified in the table
above refers to our obligation under the joint venture with
Microsoft and Pearson that was terminated earlier in the
fiscal year to allocate items of loss and expense to Microsoft
for income tax purposes. In the current fiscal year, this
commitment resulted in an additional allocation for tax
purposes of , of joint venture losses to Microsoft.
The Company accounts for income taxes using the asset
and liability method. Deferred taxes are recorded based
on differences between the financial statement basis and
tax basis of assets and liabilities and available tax loss and
credit carryforwards. At May , and May , , the
significant components of the Company’s deferred taxes
consisted of the following:
2015 Annual Report 51