Discontinued Operations of Barnes & Noble Education, Inc.

6 Months Ended

Oct. 29, 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 have been adjusted to include separation-related costs and exclude corporate allocations with B&N Retail, and have been classified as discontinued operations.

Discontinued operations in the 13 weeks ended October 31, 2015 primarily consisted of investment banking fees (as it directly related to the Spin-Off) and separation-related costs.

Discontinued operations in the 26 weeks ended October 31, 2015 primarily consisted of pre-spin B&N Education results, investment banking fees (as it directly related to the Spin-Off), separation-related costs and excluded corporate allocation adjustments with B&N Retail.

The following unaudited financial information presents the discontinued operations for the 13 and 26 weeks ended October 31, 2015:

	13 weeks ended			26 weeks ended
	October 31, 2015			October 31, 2015
Sales	$	—		$	238,983
Cost of sales and occupancy		—			186,697
Gross profit		—			52,286
Selling and administrative expenses		8,289			94,933
Depreciation and amortization		—			13,100
Operating loss from discontinued operations		(8,289	)		(55,747	)
Interest expense, net and amortization of deferred financing fees		—			3
Loss before taxes from discontinued operations		(8,289	)		(55,750	)
Income taxes		3,734			(16,604	)
Net loss from discontinued operations	$	(12,023	)	$	(39,146	)