Barnes & Noble Education(BNED) - 2023 Q4 - Annual Report

Financial Performance - Total sales for fiscal year 2023 were $1,543,208 thousand, a 3.2% increase from $1,495,734 thousand in 2022[25] - Gross profit for fiscal year 2023 was $349,439 thousand, a 1.9% increase from $342,832 thousand in 2022[25] - Net loss for fiscal year 2023 was $101,862 thousand, a 47.9% increase from $68,857 thousand in 2022[25] - The company's pre-tax earnings would be affected by approximately $3.3 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 $14.2 million, a 61.6% increase from $8.8 million in 2022[464] - Receivables decreased to $92,512 thousand in 2023 from $136,001 thousand in 2022, a 32% decline[476] - Merchandise inventories increased to $322,979 thousand in 2023 from $293,854 thousand in 2022, a 9.9% rise[476] - Total current assets were $537,001 thousand in 2023, a 1% increase from $531,705 thousand in 2022[476] - Total liabilities increased to $850,028 thousand in 2023 from $843,179 thousand in 2022, a 0.8% rise[476] Impairment and Valuation - The company recognized an impairment charge of $6.0 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]