Segment Reporting

3 Months Ended

Jul. 30, 2016

Segment Reporting

10. Segment Reporting

The Company’s two operating segments are B&N Retail and NOOK.

B&N Retail

This segment includes 638 bookstores as of July 30, 2016, primarily under the Barnes & Noble Booksellers trade name. These Barnes & Noble stores generally offer a comprehensive trade book title base, a café, and departments dedicated to Juvenile, Toys & Games, DVDs, Music & Vinyl, Gift, Magazine, Bargain products and a dedicated NOOK^® area. 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, www.barnesandnoble.com, and its publishing operation, Sterling Publishing Co., Inc.

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 and sales of NOOK^® devices and accessories to B&N Retail.

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

Sales by Segment	13 weeks ended
	July 30, 2016			August 1, 2015
B&N Retail	$	881,713			938,998
NOOK		41,048			54,335
Elimination (a)		(8,879	)		(14,774	)
Total	$	913,882			978,559
Sales by Product Line	13 weeks ended
	July 30, 2016			August 1, 2015
Media (b)		72	%		73	%
Digital (c)		4	%		6	%
Other (d)		24	%		21	%
Total		100	%		100	%
Depreciation and Amortization	13 weeks ended
	July 30, 2016			August 1, 2015
B&N Retail	$	24,962			24,780
NOOK		6,075			8,873
Total	$	31,037			33,653
Operating Income (Loss)	13 weeks ended
	July 30, 2016			August 1, 2015
B&N Retail	$	(7,367	)		20,524
NOOK		(14,022	)		(26,209	)
Total	$	(21,389	)		(5,685	)
Capital Expenditures	13 weeks ended
	July 30, 2016			August 1, 2015
B&N Retail	$	21,826			19,765
NOOK		976			2,922
Total	$	22,802			22,687
Total Assets (e)	As of July 30, 2016			As of August 1, 2015
B&N Retail	$	1,925,281			1,682,197
NOOK		122,873			408,199
Discontinued Operations		—			1,456,737
Total	$	2,048,154			3,547,133

^(a)  Represents sales from NOOK to B&N Retail 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, gifts and miscellaneous other.

^(e)  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
	July 30, 2016			August 1, 2015
Reportable segments operating loss	$	(21,389	)		(5,685	)
Interest expense, net and amortization of deferred financing costs		1,629			2,919
Consolidated loss before taxes	$	(23,018	)		(8,604	)