Income Taxes (Tables)

12 Months Ended

May 03, 2014

Income (Loss) Before Income Taxes

Income (loss) before income taxes for fiscal 2014, fiscal 2013 and fiscal 2012 are as follows:

	Fiscal 2014		Fiscal 2013			Fiscal 2012
Domestic operations	$	3,952		(257,173	)		(89,026	)
Foreign operations		733		1,824			(881	)
Total income (loss) before taxes	$	4,685		(255,349	)		(89,907	)

Income Tax Provisions (Benefits)

Income tax provisions (benefits) for fiscal 2014, fiscal 2013 and fiscal 2012 are as follows:

	Fiscal 2014		Fiscal 2013			Fiscal 2012
Current:
Federal	$	5,753		18,270			8,574
State		2,819		2,594			3,929
Foreign		156		486			—
Total current		8,728		21,350			12,503
Deferred:
Federal		30,792		(93,684	)		(28,504	)
State		12,433		(25,209	)		(9,066	)
Total deferred		43,225		(118,893	)		(37,570	)
Total	$	51,953		(97,543	)		(25,067	)

Reconciliation Between Effective Income Tax Rate and Federal Statutory Income Tax Rate

Reconciliation between the effective income tax rate and the federal statutory income tax rate is as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		156.8			3.9			4.4
Changes to unrecognized tax benefits		42.5			(5.7	)		(0.3	)
Excess executive compensation		14.0			(1.8	)		(9.8	)
Meals and entertainment disallowance		16.0			(0.2	)		(0.6	)
Research Tax Credits		(63.4	)		7.4			—
Joint venture net loss allocation		657.8			—			—
Change in valuation allowance		248.5			—			—
Other, net		1.7			(0.4	)		(0.8	)
Effective income tax rate		1,108.9	%		38.2	%		27.9	%

Components of Deferred Tax Assets and Liabilities

At May 3, 2014 and April 27, 2013, the significant components of the Company’s deferred taxes consisted of the following:

	May 3, 2014			April 27, 2013
Deferred tax assets:
Estimated accrued liabilities	$	124,875		$	129,408
Inventory		42,671			82,785
Insurance liability		8,804			9,642
Loss and credit carryovers		47,308			59,493
Lease transactions		24,499			33,427
Pension		4,885			12,330
Stock-based compensation		6,364			8,740
Investments in equity securities		1,564			1,590
Other		1,263			1,817
Gross deferred tax assets		262,233			339,232
Valuation allowance		(19,176	)		(7,533	)
Net deferred tax assets		243,057			331,699
Deferred tax liabilities:
Prepaid expenses		(6,900	)		(7,015	)
Goodwill and intangible asset amortization		(209,541	)		(216,182	)
Investment in Barnes & Noble.com		(78,554	)		(79,034	)
Depreciation		(15,257	)		(50,790	)
Gross deferred tax liabilities		(310,252	)		(353,021	)
Net deferred tax liabilities	$	(67,195	)	$	(21,322	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2014, fiscal 2013 and fiscal 2012 is as follows:

Balance at April 30, 2011	$	13,479
Additions for tax positions of prior periods		—
Reductions due to settlements		(228	)
Other reductions for tax positions of prior periods		(116	)
Balance at April 28, 2012	$	13,135
Additions for tax positions of the current period		3,189
Additions for tax positions of prior periods		9,187
Reductions due to settlements		(370	)
Other reductions for tax positions of prior periods		(3,815	)
Balance at April 27, 2013	$	21,326
Additions for tax positions of the current period		2,693
Additions for tax positions of prior periods		2,206
Reductions due to settlements		—
Other reductions for tax positions of prior periods		(7,070	)
Balance at May 3, 2014	$	19,155