Segment Reporting

6 Months Ended

Oct. 29, 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 October 29, 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						26 weeks ended
	October 29, 2016			October 31, 2015			October 29, 2016			October 31, 2015
B&N Retail	$	830,719			860,705		$	1,712,432			1,799,703
NOOK		35,042			43,496			76,090			97,831
Elimination (a)		(7,213	)		(9,547	)		(16,092	)		(24,321	)
Total	$	858,548			894,654		$	1,772,430			1,873,213
Sales by Product Line	13 weeks ended						26 weeks ended
	October 29, 2016			October 31, 2015			October 29, 2016			October 31, 2015
Media (b)		71	%		71	%		71	%		72	%
Digital (c)		4	%		5	%		4	%		6	%
Other (d)		25	%		24	%		25	%		22	%
Total		100	%		100	%		100	%		100	%
Depreciation and Amortization	13 weeks ended						26 weeks ended
	October 29, 2016			October 31, 2015			October 29, 2016			October 31, 2015
B&N Retail	$	24,558			26,446		$	49,520			51,226
NOOK		5,436			8,618			11,511			17,491
Total	$	29,994			35,064		$	61,031			68,717
Operating Loss	13 weeks ended						26 weeks ended
	October 29, 2016			October 31, 2015			October 29, 2016			October 31, 2015
B&N Retail	$	(21,083	)		(25,662	)	$	(28,450	)		(5,138	)
NOOK		(8,182	)		(29,897	)		(22,204	)		(56,106	)
Total	$	(29,265	)		(55,559	)	$	(50,654	)		(61,244	)

Capital Expenditures	13 weeks ended				26 weeks ended
	October 29, 2016		October 31, 2015		October 29, 2016		October 31, 2015
B&N Retail	$	27,381		24,780	$	49,207		44,545
NOOK		1,554		3,254		2,530		6,176
Total	$	28,935		28,034	$	51,737		50,721
Total Assets (e)	As of October 29, 2016		As of October 31, 2015
B&N Retail	$	2,134,004		1,921,912
NOOK		123,759		407,998
Total	$	2,257,763		2,329,910

^(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						26 weeks ended
	October 29, 2016			October 31, 2015			October 29, 2016			October 31, 2015
Reportable segments operating loss	$	(29,265	)		(55,559	)	$	(50,654	)		(61,244	)
Interest expense, net and amortization of deferred financing costs		1,961			2,338			3,590			5,257
Consolidated loss before taxes	$	(31,226	)		(57,897	)	$	(54,244	)		(66,501	)