Income Taxes (Tables)

12 Months Ended

Apr. 27, 2013

Income Tax Provisions (Benefits)

Income tax provisions (benefits) for fiscal 2013, fiscal 2012 and fiscal 2011 are as follows:

	Fiscal 2013			Fiscal 2012			Fiscal 2011
Current:
Federal	$	18,270			8,574			(44,859	)
State		2,594			3,929			(2,031	)
Foreign		486			—			—
Total current		21,350			12,503			(46,890	)
Deferred:
Federal		(93,684	)		(28,504	)		8,057
State		(25,209	)		(9,066	)		(6,443	)
Total deferred		(118,893	)		(37,570	)		1,614
Total	$	(97,543	)		(25,067	)		(45,276	)

Reconciliation Between Effective Income Tax Rate and Federal Statutory Income Tax Rate

Reconciliation between the effective income tax rate and the federal statutory income tax rate is as follows:

	Fiscal 2013			Fiscal 2012			Fiscal 2011
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		3.9			4.4			4.8
Changes to unrecognized tax benefits		(5.7	)		(0.3	)		(1.2	)
Excess 162(m) limitation		(1.8	)		(9.8	)		—
Research Tax Credits		7.4			—			—
Other, net		(0.6	)		(1.4	)		1.1
Effective income tax rate		38.2	%		27.9	%		39.7	%

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant components of the Company’s deferred tax assets and liabilities as of April 27, 2013 and April 28, 2012 are as follows:

	April 27, 2013			April 28, 2012
Deferred tax assets:
Current deferred tax assets:
Estimated accrued liabilities	$	129,408			88,823
Inventory		82,785			19,674
Insurance liability		9,642			11,105
Valuation allowances – current		(4,926	)		—
Total current deferred tax assets		216,909			119,602
Non-current deferred tax assets:
Loss and credit carryovers		59,493			75,817
Lease transactions		33,427			30,043
Pension		12,330			11,953
Stock-based compensation		8,740			9,946
Investments in equity securities		1,590			1,282
Other		1,817			—
Valuation allowances – non-current		(2,607	)		—
Total non-current deferred tax assets		114,790			129,041
Total deferred tax assets		331,699			248,643
Deferred tax liabilities:
Current deferred tax liabilities:
Prepaid expenses		(7,015	)		(7,827	)
Total current deferred tax liabilities		(7,015	)		(7,827	)
Non-current deferred tax liabilities:
Goodwill and intangible asset amortization		(216,182	)		(233,322	)
Investment in Barnes & Noble.com		(79,034	)		(69,025	)
Depreciation		(50,790	)		(63,216	)
Other		—			(6,226	)
Total non-current deferred tax liabilities		(346,006	)		(371,789	)
Total deferred tax liabilities		(353,021	)		(379,616	)
Net deferred tax liabilities	$	(21,322	)		(130,973	)
Balance sheet caption reported in:
Prepaid expenses and other current assets	$	209,893			111,775
Deferred tax liabilities		(231,215	)		(242,748	)
Net deferred tax liabilities	$	(21,322	)		(130,973	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2013, fiscal 2012 and fiscal 2011 is as follows:

Balance at May 1, 2010	$	15,268
Additions for tax positions of the current period		1,809
Additions for tax positions of prior periods		1,199
Reductions due to settlements		(508	)
Other reductions for tax positions of prior periods		(1,053	)
Balance at April 30, 2011	$	16,715
Additions for tax positions of prior periods		993
Reductions due to settlements		(228	)
Other reductions for tax positions of prior periods		(448	)
Balance at April 28, 2012	$	17,032
Additions for tax positions of the current period		3,189
Additions for tax positions of prior periods		16,931
Reductions due to settlements		(924	)
Other reductions for tax positions of prior periods		(4,768	)
Balance at April 27, 2013	$	31,460