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Gift Cards
3 Months Ended
Jul. 27, 2013
Gift Cards

(8) Gift Cards

The Company sells gift cards which can be used in its stores or on Barnes & Noble.com. The Company does not charge administrative or dormancy fees on gift cards and gift cards have no expiration dates. Upon the purchase of a gift card, a liability is established for its cash value. Revenue associated with gift cards is deferred until redemption of the gift card. Over time, some portion of the gift cards issued are not redeemed. The Company estimates the portion of the gift card liability for which the likelihood of redemption is remote based upon the Company’s historical redemption patterns. The Company records this amount in income on a straight-line basis over a 12-month period beginning in the 13th month after the month the gift card was originally sold. The Company recognized gift card breakage of $5,832 and $6,045 during the 13 weeks ended July 27, 2013 and July 28, 2012, respectively. The Company had gift card liabilities of $329,038 and $312,855 as of July 27, 2013 and July 28, 2012, respectively.