Changes in Intangible Assets and Goodwill

9 Months Ended

Jan. 26, 2013

Changes in Intangible Assets and Goodwill

(7) Changes in Intangible Assets and Goodwill


			As of January 26, 2013
Amortizable Intangible Assets	Useful Life		Gross Carrying Amount		Accumulated Amortization		Total
Customer relationships and other acquired intangible assets		3-25	$	271,938	$	44,582	$	227,356
Author contracts		10		18,461		18,434		27
Technology		3-10		10,710		3,814		6,896
Distribution contracts		10		8,325		5,402		2,923
Other		3-10		6,257		5,096		1,161

			$	315,691	$	77,328	$	238,363


Unamortizable Intangible Assets
Trade name							$	293,400
Publishing contracts								21,336

							$	314,736

Total intangible assets							$	553,099

Amortizable intangible assets are generally amortized over their useful life on a straight-line basis, with the exception of certain items such as customer relationships and other acquired intangible assets, which are amortized on an accelerated basis.


Aggregate Amortization Expense:
For the 39 weeks ended January 26, 2013	$	16,176
For the 39 weeks ended January 28, 2012	$	12,980


Estimated Amortization Expense:
(12 months ending on or about April 30)
2013	$	21,031
2014	$	18,861
2015	$	15,029
2016	$	11,508
2017	$	10,878

On October 17, 2011, the Company finalized the purchase of certain intellectual property assets from the Borders Group, Inc. Chapter 11 Bankruptcy for $14,528 including acquisition related fees. These intellectual property assets include a customer list, trade names and URLs. The Company accounted for the transaction as an asset purchase, and these assets are included on its consolidated balance sheet as Intangible Assets. The intangible assets are being amortized on an accelerated basis over a three-year period, commencing October 17, 2011. Amortization expense related to the acquisition for the 39 weeks ended January 26, 2013 was $4,237.

The changes in the carrying amount of goodwill by segment for the 39 weeks ended January 26, 2013 are as follows:


	B&N Retail			B&N College		NOOK			Total Company
Balance as of April 28, 2012	$	225,336			274,070		20,279		$	519,685
Benefit of excess tax amortization ^(a)		(3,321	)		—		—			(3,321	)
Tikatok Impairment		—			—		(1,947	)		(1,947	)

Balance as of January 26, 2013	$	222,015			274,070		18,332		$	514,417

(a)

The tax basis of goodwill arising from an acquisition during the 52 weeks ended January 29, 2005 exceeded the related basis for financial reporting purposes by approximately $96,576. In accordance with ASC 740-10-30, Accounting for Income Taxes, the Company is recognizing the tax benefits of amortizing such excess as a reduction of goodwill as it is realized on the Company’s income tax return.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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