Segment Reporting

3 Months Ended

Jul. 28, 2012

Segment Reporting

(6) Segment Reporting

Through the third quarter of fiscal 2012, the Company reported an operating segment titled B&N.com which included both its digital business and eCommerce operations. Due to the increased focus on the digital business and the Company’s recently developed ability to review the digital business separate from its eCommerce business, the Company performed an evaluation on the effect of its impact on the identification of operating segments. The assessment considered the way the business is managed (focusing on the financial information distributed) and the manner in which the chief operating decision maker interacts with other members of management. As a result of this assessment, during the fourth quarter of fiscal 2012 the Company determined that the segment previously referred to as B&N.com is no longer applicable and created a new segment titled NOOK to report upon its digital business, moving the eCommerce business (i.e., sales of physical merchandise over the Internet) into the B&N Retail segment. Also as a result of this assessment, certain corporate office and other costs have been allocated to all three segments. The Company’s three operating segments are: B&N Retail, B&N College and NOOK.

B&N Retail

This segment includes 689 bookstores as of July 28, 2012, primarily under the Barnes & Noble Booksellers trade name. The 689 Barnes & Noble stores generally offer a NOOK^® department, boutique, counter, a comprehensive trade book title base, a café, a Children’s department, a Toys & Games department, a DVDs/BluRay department, a music department, a gift department, a magazine department, bargain department and a calendar of ongoing events, including author appearances and children’s activities. The B&N Retail segment also includes the Company’s eCommerce website, barnesandnoble.com, and the publishing operation, Sterling Publishing.

B&N College

This segment includes 667 stores as of July 28, 2012 that are primarily school-owned stores operated under contracts by B&N College and sales of digital content within the higher education marketplace through NOOK Study^™. The 667 B&N College stores generally offer new, used, rental and digital textbooks, course-related materials, emblematic apparel and gifts, trade books, computer products and NOOK^® products and related accessories, school and dorm supplies, and convenience and café items.

NOOK

This segment includes the Company’s digital business, including the development and support of the Company’s NOOK^® product offerings. The digital business includes digital content such as eBooks, digital newsstand, apps and sales of NOOK^® devices and accessories to third party distribution partners, B&N Retail and B&N College.

Summarized financial information concerning the Company’s reportable segments is presented below:

Sales

	13 weeks ended
	July 28, 2012			July 30, 2011
B&N Retail	$	1,119,387		$	1,097,252
B&N College		220,718			220,494
NOOK		191,975			191,412
Elimination  (a)		(78,573	)		(90,754	)
Total	$	1,453,507		$	1,418,404

Sales by Product Line

	13 weeks ended
	July 28,			July 30,
	2012			2011
Media (b)		62	%		61	%
Digital (c)		18	%		20	%
Other (d)		20	%		19	%
Total		100	%		100	%

Depreciation and Amortization

	13 weeks ended
	July 28, 2012		July 30, 2011
B&N Retail	$	40,940	$	39,485
B&N College		11,715		10,849
NOOK		5,380		5,337
Total	$	58,035	$	55,671

Operating Profit (Loss)

	13 weeks ended
	July 28, 2012			July 30, 2011
B&N Retail	$	33,621		$	211
B&N College		(25,747	)		(23,053	)
NOOK		(62,076	)		(56,389	)
Total	$	(54,202	)	$	(79,231	)

Capital Expenditures

	13 weeks ended
	July 28, 2012		July 30, 2011
B&N Retail	$	9,616	$	12,390
B&N College		9,533		8,933
NOOK		7,308		5,302
Total	$	26,457	$	26,625

Total Assets ^(e)

	July 28, 2012		July 30, 2011
B&N Retail	$	2,242,167	$	2,005,773
B&N College		1,385,414		1,506,871
NOOK		417,103		459,013
Total	$	4,044,684	$	3,971,657

(a) Represents the elimination of intercompany sales from NOOK to Barnes & Noble Retail and Barnes & Noble College on a sell through basis.

(b) Includes tangible books, music, movies, rentals and newsstand.

(c) Includes NOOK^®, related accessories, eContent and warranties.

(d) Includes toys & games, café products, college apparel, gifts and miscellaneous other.

(e) Excludes intercompany balances.

A reconciliation of operating profit from reportable segments to income (loss) from operations before taxes in the consolidated financial statements is as follows:

	13 weeks ended
	July 28, 2012			July 30, 2011
Reportable segments operating loss	$	(54,202	)	$	(79,231	)
Interest expense, net and amortization of deferred financing costs		8,941			9,442
Consolidated loss before taxes	$	(63,143	)	$	(88,673	)