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Barnes & Noble Education(BNED) - 2023 Q4 - Annual Report
BNEDBarnes & Noble Education(BNED)2023-07-30 16:00
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Financial Performance - Total sales for fiscal year 2023 were 1,543,208thousand,a3.21,543,208 thousand, a 3.2% increase from 1,495,734 thousand in 2022[25] - Gross profit for fiscal year 2023 was 349,439thousand,a1.9349,439 thousand, a 1.9% increase from 342,832 thousand in 2022[25] - Net loss for fiscal year 2023 was 101,862thousand,a47.9101,862 thousand, a 47.9% increase from 68,857 thousand in 2022[25] - The company's pre-tax earnings would be affected by approximately 3.3millioninFiscal2023ifthereisa103.3 million in Fiscal 2023 if there is a 10% change in rental cost of goods sold[486] - A 10% change in long-term incentive compensation expense would impact pre-tax earnings by approximately 0.5 million in Fiscal 2023[488] - A 10% decrease in estimated discounted cash flows would not have materially affected the company's operations in Fiscal 2023[490] Assets and Liabilities - Cash and cash equivalents as of April 29, 2023 totaled 14.2million,a61.614.2 million, a 61.6% increase from 8.8 million in 2022[464] - Receivables decreased to 92,512thousandin2023from92,512 thousand in 2023 from 136,001 thousand in 2022, a 32% decline[476] - Merchandise inventories increased to 322,979thousandin2023from322,979 thousand in 2023 from 293,854 thousand in 2022, a 9.9% rise[476] - Total current assets were 537,001thousandin2023,a1537,001 thousand in 2023, a 1% increase from 531,705 thousand in 2022[476] - Total liabilities increased to 850,028thousandin2023from850,028 thousand in 2023 from 843,179 thousand in 2022, a 0.8% rise[476] Impairment and Valuation - The company recognized an impairment charge of 6.0millionrelatedtolong−livedassetsinfiscalyear2023[472]−Significantassumptionsforimpairmentanalysisincludeannualrevenuegrowthrates,grossmarginrates,andweightedaveragecostofcapital[490]−ThecompanyusestheBlack−Scholesmodeltodeterminethefairvalueofstockoptionsandphantomshares[488]−Thefairvalueofcash−settledphantomshareunitsisremeasuredateachreportingperiodbasedoncurrentrisk−freerateandvolatilityassumptions[488]TaxandRefunds−Thecompanyexpectstoreceiveadditionaltaxrefundsofapproximately6.0 million related to long-lived assets in fiscal year 2023[472] - Significant assumptions for impairment analysis include annual revenue growth rates, gross margin rates, and weighted average cost of capital[490] - The company uses the Black-Scholes model to determine the fair value of stock options and phantom shares[488] - The fair value of cash-settled phantom share units is remeasured at each reporting period based on current risk-free rate and volatility assumptions[488] Tax and Refunds - The company expects to receive additional tax refunds of approximately 10.0 million[481] - Deferred tax assets are evaluated based on future taxable income expectations and carryforward periods[491] - The company does not recognize tax benefits for positions with a 50% or lower likelihood of being sustained upon audit[491] Operational and Accounting Practices - Management evaluates conditions that may raise substantial doubt about the company's ability to continue as a going concern[483] - Textbook rental inventories are amortized to their estimated residual value over the rental period[486]