Schedule of Goodwill (Detail)
$ in Thousands

12 Months Ended

Oct. 27, 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 26 weeks ended October 27, 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 this indicates a potential impairment of goodwill as of October 27, 2018. The Company has considered, among other factors, the Company's fiscal 2019 forecast, significant improvements in its second quarter comparable store sales and earnings, and improvements in the current retail environment. Based on that evaluation, the Company determined that there have not been any events or circumstances that indicate that it is more likely than not that the fair value of its reporting unit is less than the carrying value. However, the goodwill of the B&N Retail reporting unit is subject to further risk of impairment if B&N Retail holiday comparable store sales 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.