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Operating results
(exclusive of the aforementioned provisions) from discontinued operations
are as follows:

The components of
net assets of discontinued operations included in the Companys consolidated
balance sheets at January 28, 2001, and January 23, 2000, are as follows:

Note
4 Asset Impairments and Other Writedowns
In the fourth quarter
of fiscal 2000, the Company took a pre-tax charge of $36.2 related to
the impairment of certain long-lived assets and other writedowns. The
carrying value of long-lived assets are evaluated whenever changes in
circumstances indicate the carrying amount of such assets may not be recoverable.
In performing such reviews for recoverability, the Company compares the
expected cash flows to the carrying value of long-lived assets. If the
expected future cash flows are less than the carrying amount of such assets,
the Company recognizes an impairment loss for the difference between the
carrying amount and their estimated fair value. Fair value is estimated
using expected discounted future cash flows. The charge taken in 2000
primarily consisted of $17.7 for computer hardware and software of Borders.com
and $12.5 for leasehold improvements and furniture and fixtures of underperforming
Walden stores. The remainder of the charge was related to employee severance,
the costs of certain lease obligations for redundant headquarter buildings,
and the writeoff of certain equity investments.
Note
5 Property and Equipment
Property and equipment
consists of the following:

Note
6 Income Taxes
The income tax provision
from continuing operations consists of the following:

A reconciliation
of the federal statutory rate to the Company's effective tax rate follows:

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