Commitments and Contingencies

12 Months Ended

Apr. 30, 2011

Commitments and Contingencies

Commitments and Contingencies

18. Commitments and Contingencies

The Company leases retail stores, warehouse facilities, office space and equipment. Substantially all of the B&N Retail stores are leased under noncancelable agreements which expire at various dates through 2036 with various renewal options for additional periods. The agreements, which have been classified as operating leases, generally provide for both minimum and percentage rentals and require the Company to pay insurance, taxes and other maintenance costs. Percentage rentals are based on sales performance in excess of specified minimums at various stores.

B&N College's contracts are typically for five to ten years, although some extend beyond ten years. Many contracts have a 90 to 120 day cancellation right by B&N College, or by the college or university, without penalty.

Rental expense under operating leases is as follows:

	Fiscal 2011		Fiscal 2010		13 weeks ended May 2, 2009		Fiscal 2008
Minimum rentals	$	394,199	$	363,373	$	75,161	$	310,967
Percentage rentals		102,735		40,324		842		4,380
	$	496,934	$	403,697		76,003		315,347

Future minimum annual rentals, excluding percentage rentals, required under B&N Retail leases that had initial, noncancelable lease terms greater than one year, and under B&N College leases as of April 30, 2011 are:

Fiscal Year	(a)
2012	$	400,959
2013		347,468
2014		295,977
2015		229,514
2016		184,849
After 2016		503,813
	$	1,962,580

(a) Includes B&N College capital lease obligations of $1,067, $791, $766, $511, $0 and $0, for fiscal 2012, 2013, 2014, 2015, 2016 and after 2016, respectively.

The Company provides for minimum 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 tenant allowances) is reflected primarily in other long-term liabilities in the accompanying balance sheets.

On June 26, 2008, the Company exercised its purchase option under a lease on one of its distribution facilities located in South Brunswick, New Jersey from the New Jersey Economic Development Authority. Under the terms of the lease expiring in June 2011, the Company purchased the distribution facility and equipment for approximately $21,000.