Segment Reporting

6 Months Ended

Nov. 01, 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 November 1, 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 714 stores as of November 1, 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						26 weeks ended
	November 1, 2014			October 26, 2013			November 1, 2014			October 26, 2013
B&N Retail	$	888,159		$	921,023		$	1,842,966		$	1,929,225
B&N College		751,276			737,533			977,370			963,555
NOOK		63,866			108,733			133,893			261,870
Elimination		(15,481	)		(33,130	)		(29,962	)		(90,989	)
Total	$	1,687,820		$	1,734,159		$	2,924,267		$	3,063,661

Sales by Product Line	13 weeks ended						26 weeks ended
	November 1, 2014			October 26, 2013			November 1, 2014			October 26, 2013
Media (a)		73	%		72	%		71	%		69	%
Digital (b)		4	%		7	%		5	%		9	%
Other (c)		23	%		21	%		24	%		22	%
Total		100	%		100	%		100	%		100	%
Depreciation and Amortization	13 weeks ended						26 weeks ended
	November 1, 2014			October 26, 2013			November 1, 2014			October 26, 2013
B&N Retail	$	26,968		$	31,994		$	54,372		$	64,218
B&N College		12,509			11,735			25,053			23,376
NOOK		9,986			9,955			20,307			21,089
Total	$	49,463		$	53,684		$	99,732		$	108,683
Operating Profit (Loss)	13 weeks ended						26 weeks ended
	November 1, 2014			October 26, 2013			November 1, 2014			October 26, 2013
B&N Retail	$	(1,619	)	$	4,581		$	37,117		$	37,118
B&N College		67,569			72,582			23,022			41,846
NOOK		(47,590	)		(55,178	)		(62,497	)		(120,923	)
Total	$	18,360		$	21,985		$	(2,358	)	$	(41,959	)
Capital Expenditures	13 weeks ended						26 weeks ended
	November 1, 2014			October 26, 2013			November 1, 2014			October 26, 2013
B&N Retail	$	19,376		$	22,733		$	35,284		$	34,379
B&N College		15,340			13,991			24,605			21,075
NOOK		4,964			5,126			12,914			14,683
Total	$	39,680		$	41,850		$	72,803		$	70,137

Total Assets (d)	November 1, 2014		October 26, 2013
B&N Retail	$	2,260,961	$	2,310,315
B&N College		1,404,844		1,408,765
NOOK		169,948		359,338
Total	$	3,835,753	$	4,078,418

(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 income (loss) from reportable segments to income (loss) from continuing operations before taxes in the consolidated financial statements is as follows:

	13 weeks ended				26 weeks ended
	November 1, 2014		October 26, 2013		November 1, 2014			October 26, 2013
Reportable segments operating profit (loss)	$	18,360	$	21,985	$	(2,358	)	$	(41,959	)
Interest expense, net and amortization of deferred financing costs		5,302		7,555		11,222			15,107
Consolidated income (loss) before taxes	$	13,058	$	14,430	$	(13,580	)	$	(57,066	)