Earnings (Loss) per Share

6 Months Ended

Oct. 27, 2012

Earnings (Loss) per Share

(5) Earnings (Loss) per Share

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, the Company’s unvested restricted shares, unvested restricted stock units and shares issuable under the Company’s deferred compensation plan are considered participating securities. During periods of net income, the calculation of earnings per share for common stock are reclassified to exclude the income attributable to unvested restricted shares, unvested restricted stock units and shares issuable under the Company’s deferred compensation plan from the numerator and exclude the dilutive impact of those shares from the denominator.

During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. Due to the net loss during the 13 weeks ended October 27, 2012 and October 29, 2011, participating securities in the amounts of 2,846,643 and 3,474,175, respectively, and participating securities in the amounts of 2,886,968 and 3,471,882 for the 26 weeks ended October 27, 2012 and October 29, 2011, respectively, were excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive. The Company’s outstanding stock options and accretion/payments of dividends on preferred shares were also excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive.

The following is a reconciliation of the Company’s basic and diluted loss per share calculation:

	13 weeks ended						26 weeks ended
	October 27, 2012			October 29, 2011			October 27, 2012			October 29, 2011
Numerator for basic loss per share:
Net income (loss) attributable to Barnes & Noble, Inc.	$	2,233			(6,563	)	$	(38,747	)		(63,169	)
Preferred stock dividends		(3,942	)		(3,118	)		(7,883	)		(3,118	)
Accretion of dividends on preferred stock		(453	)		(262	)		(769	)		(262	)
Net loss available to common shareholders	$	(2,162	)		(9,943	)	$	(47,399	)		(66,549	)
Numerator for diluted loss per share:
Net loss available to common shareholders	$	(2,162	)		(9,943	)	$	(47,399	)		(66,549	)
Denominator for basic and diluted loss per share:
Basic weighted average common shares		58,168			57,261			58,094			57,207
Basic loss per common share
Net loss attributable to Barnes & Noble, Inc. available for common shareholders	$	(0.04	)		(0.17	)	$	(0.82	)		(1.16	)
Diluted loss per common share
Net loss attributable to Barnes & Noble, Inc. available for common shareholders	$	(0.04	)		(0.17	)	$	(0.82	)		(1.16	)