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Gift Cards
6 Months Ended
Oct. 26, 2013
Gift Cards

(8) Gift Cards

The Company sells gift cards which can be used in its stores or on barnesandnoble.com. The Company does not charge administrative or dormancy fees on gift cards and gift cards have no expiration dates. Upon the purchase of a gift card, a liability is established for its cash value. Revenue associated with gift cards is deferred until redemption of the gift card. Over time, some portion of the gift cards issued are not redeemed. The Company estimates the portion of the gift card liability for which the likelihood of redemption is remote based upon the Company’s historical redemption patterns. The Company records this amount in income on a straight-line basis over a 12-month period beginning in the 13th month after the month the gift card was originally sold. The Company recognized gift card breakage of $5,840 and $6,015 during the 13 weeks ended October 26, 2013 and October 27, 2012, respectively and $11,672 and $12,060 during the 26 weeks ended October 26, 2013 and October 27, 2012, respectively. The Company had gift card liabilities of $313,581 and $297,191 as of October 26, 2013 and October 27, 2012, respectively.