Note 8. Supplementary Information

Impairment Loss (non-cash)

During the third and fourth quarters of fiscal 2016, we implemented a plan to restructure our digital operations. For additional information, see Note 14. Subsequent Events. As a result of this restructuring, during the 13 and 39 weeks ended January 30, 2016, we recorded a non-cash impairment loss of $11,987 related to all of the capitalized content costs for the Yuzu^® eTextbook platform ($8,987) based on the probability of recoverability of the capitalized content costs, and we recorded a non-recurring other than temporary loss related to an investment held at cost ($3,000), whose fair value has been reduced to $0 based on the financial projections of the investment.

Other Long-Term Liabilities

Other long-term liabilities consist primarily of tax liabilities related to the long-term tax payable associated with the LIFO reserve and deferred management service agreement costs related to college and university contracts, which we account for under lease accounting (as deferred rent). We provide for minimum contract expense (rent expense) over the lease terms (including the build-out period) on a straight-line basis. The excess of such rent expense over actual lease payments (net of school allowances) is classified as deferred rent. We had the following long-term liabilities at January 30, 2016, January 31, 2015 and May 2, 2015:



	January 30, 2016		January 31, 2015		May 2, 2015
Tax liabilities and reserves	$	63,459	$	58,558	$	63,673
Deferred rent	4,662		4,008		4,082
Other	1,816		104		1,733
Total other long-term liabilities	$	69,937	$	62,670	$	69,488

As a result of an immaterial balance sheet error correction, during the first quarter of fiscal 2016, we increased other long-term liabilities and decreased Parent company investment by $58,298 and $63,459 for the periods ended as of January 31, 2015 and May 2, 2015, respectively. This correction related to the long-term tax payable associated with the LIFO reserve which was previously deemed contributed to Parent company capital as an intercompany liability, along with other income tax liabilities associated with our operations. The liability should not have been deemed contributed as the long-term obligation to the tax authority is required to stay with Barnes & Noble Education, Inc. as that entity would be legally obligated to pay that amount if required. Management believes it is remote that the long-term tax payable associated with the LIFO reserve will be payable or will result in a cash tax payment in the foreseeable future, assuming that LIFO will continue to be an acceptable inventory method for tax purposes. Management has assessed both quantitative and qualitative factors discussed in ASC No. 250, Accounting Changes and Error Corrections and Staff Accounting Bulletin 1.M, Materiality (SAB Topic 1.M) to determine that this misstatement qualifies as an immaterial balance sheet error correction. We concluded that this balance sheet misstatement is not material to an investor as it did not affect pre-tax income, net income, earnings per share or amounts reported in the statement of cash flows for any prior period financial statements.