Schedule of Goodwill (Detail)
$ in Thousands

12 Months Ended

Jul. 28, 2018

USD ($)

[1]

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.

[2]

In fiscal 2018, the Company recognized an impairment of its B&N Retail reporting unit goodwill of $133,612. While the Company has initiated a multi-year strategic plan focused on stabilizing sales, improving productivity and reducing expenses, achievement of its long-term goals requires a significant multi-year transformation. During the 13 weeks ended July 28, 2018, the Company experienced comparable store sales and earnings before interest, taxes and depreciation and amortization that were lower than planned. The Company has evaluated whether these decreases would indicate there is a potential impairment of goodwill as of July 28, 2018. The Company has considered, among other factors, the Company's fiscal 2019 forecast and the current retail environment. Based on that evaluation, the Company determined that there have been no events or circumstances which would more likely than not reduce the fair value for its reporting units below their carrying value, during the quarter ended July 28, 2018, and an interim impairment test was not necessary as of July 28, 2018. However, the goodwill of the B&N Retail reporting unit is subject to further risk of impairment if B&N Retail comparable store sales continue to decline, the Company's cost reduction plans do not materialize, store closings accelerate, the assumed long-term discount rate increases, or in general the Company does not achieve its forecasted multi-year strategic plan.