Segment Reporting

3 Months Ended

Aug. 02, 2014

Segment Reporting

(5) Segment Reporting

The Company’s three operating segments are: B&N Retail, B&N College and NOOK.

B&N Retail

This segment includes 658 bookstores as of August 2, 2014, primarily under the Barnes & Noble Booksellers trade name. These Barnes & Noble stores generally offer a dedicated NOOK^® area, a comprehensive trade book title base, a café, and departments dedicated to Juvenile, Toys & Games, DVDs, Music, Gift, Magazine and Bargain products. The stores also offer 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 its publishing operation, Sterling Publishing.

B&N College

This segment includes 705 stores as of August 2, 2014 that are primarily school-owned stores operated under contracts by B&N College and include sales of digital content within the higher education marketplace through Yuzu™. These B&N College stores generally offer new, used, rental and digital textbooks, course-related materials, emblematic apparel and gifts, trade books, computer products, 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 B&N Retail, B&N College and third party distribution partners.

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

Sales by Segment	13 weeks ended
	August 2, 2014			July 27, 2013
B&N Retail	$	954,807		$	1,008,202
B&N College		226,094			226,022
NOOK		70,027			153,138
Elimination		(14,481	)		(57,860	)
Total	$	1,236,447		$	1,329,502

Sales by Product Line	13 weeks ended
	August 2, 2014			July 27, 2013
Media (a)		68	%		65	%
Digital (b)		7	%		13	%
Other (c)		25	%		22	%
Total		100	%		100	%

Depreciation and Amortization	13 weeks ended
	August 2, 2014		July 27, 2013
B&N Retail	$	27,404	$	32,224
B&N College		12,544		11,641
NOOK		10,321		11,134
Total	$	50,269	$	54,999

Operating Profit (Loss)	13 weeks ended
	August 2, 2014			July 27, 2013
B&N Retail	$	38,736		$	32,537
B&N College		(44,547	)		(30,736	)
NOOK		(14,907	)		(65,745	)
Total	$	(20,718	)	$	(63,944	)

Capital Expenditures	13 weeks ended
	August 2, 2014		July 27, 2013
B&N Retail	$	15,908	$	11,647
B&N College		9,265		7,083
NOOK		7,950		9,557
Total	$	33,123	$	28,287

Total Assets (d)	August 2, 2014		July 27, 2013
B&N Retail	$	2,171,570	$	2,167,480
B&N College		1,423,412		1,339,495
NOOK		153,672		420,239
Total	$	3,748,654	$	3,927,214

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

(b) Includes NOOK, related accessories, eContent and warranties.

(c) Includes Toys & Games, café products, college apparel, gifts and miscellaneous other.

(d) Excludes intercompany balances.

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

	13 weeks ended
	August 2, 2014			July 27, 2013
Reportable segments operating loss	$	(20,718	)	$	(63,944	)
Interest expense, net and amortization of deferred financing costs		5,920			7,552
Consolidated loss before taxes	$	(26,638	)	$	(71,496	)