Discontinued Operations of Barnes & Noble Education, Inc.

3 Months Ended

Jul. 30, 2016

Discontinued Operations of Barnes & Noble Education, Inc.

3. Discontinued Operations of Barnes & Noble Education, Inc.

The Company has recognized the separation of B&N Education in accordance with Accounting Standards Codification (ASC) 205-20, Discontinued Operations. As such, the historical results of Barnes & Noble Education for the 13 weeks ended August 1, 2015 have been adjusted to include pre-spin B&N Education results and separation-related costs and exclude corporate allocations with B&N Retail, and have been classified as discontinued operations.

The following unaudited financial information presents the discontinued operations for the 13 weeks ended August 1, 2015:

Sales	$	238,983
Cost of sales and occupancy		186,697
Gross profit		52,286
Selling and administrative expenses		86,644
Depreciation and amortization		13,100
Operating loss from discontinued operations		(47,458	)
Interest expense, net and amortization of deferred financing fees		3
Loss before taxes from discontinued operations		(47,461	)
Income taxes		(20,338	)
Net loss from discontinued operations	$	(27,123	)

The following unaudited table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations:

	August 1, 2015
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	16,029
Receivables, net		35,460
Merchandise inventories, net		766,768
Prepaid expenses and other current assets		15,262
Total current assets		833,519
Property and equipment:
Buildings and leasehold improvements		154,524
Fixtures and equipment		341,708
		496,232
Less accumulated depreciation and amortization		387,449
Net property and equipment		108,783
Goodwill		274,070
Intangible assets, net		195,627
Other non-current assets		44,738
Total assets classified as discontinued operations in the consolidated balance sheet	$	1,456,737
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable	$	601,240
Accrued liabilities		97,792
Total current liabilities		699,032
Long-term deferred taxes		42,001
Other long-term liabilities		34,405
Total liabilities classified as discontinued operations in the consolidated balance sheet	$	775,438