Segment Reporting

6 Months Ended

Oct. 27, 2018

Segment Reporting

7.     Segment Reporting

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

B&N Retail

This segment includes 630 bookstores as of October 27, 2018, 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 Kids, 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 27, 2018			October 28, 2017			October 27, 2018			October 28, 2017
B&N Retail	$	753,185			769,709		$	1,528,903			1,599,745
NOOK		21,763			25,964			47,033			55,464
Elimination (a)		(3,760	)		(4,556	)		(9,972	)		(10,776	)
Total	$	771,188			791,117		$	1,565,964			1,644,433

Depreciation and Amortization	13 weeks ended				26 weeks ended
	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
B&N Retail	$	21,888		24,117	$	43,166		47,196
NOOK		2,560		3,082		5,167		6,401
Total	$	24,448		27,199	$	48,333		53,597

Operating Loss	13 weeks ended						26 weeks ended
	October 27, 2018			October 28, 2017			October 27, 2018			October 28, 2017
B&N Retail	$	(25,242	)		(49,311	)	$	(41,110	)		(61,821	)
NOOK		(1,518	)		(2,921	)		(1,851	)		(5,623	)
Total	$	(26,760	)		(52,232	)	$	(42,961	)		(67,444	)

Capital Expenditures	13 weeks ended				26 weeks ended
	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
B&N Retail	$	36,749		27,045	$	48,979		45,944
NOOK		1,493		1,782		2,867		3,588
Total	$	38,242		28,827	$	51,846		49,532

Total Assets (b)	October 27, 2018		October 28, 2017
B&N Retail	$	1,931,335		2,174,430
NOOK		24,824		28,258
Total	$	1,956,159		2,202,688

^(a) Represents sales from NOOK to B&N Retail on a sell-through basis.

^(b) Excludes intercompany balances.

A reconciliation of operating loss from reportable segments to loss before taxes in the consolidated financial statements is as follows:

	13 weeks ended						26 weeks ended
	October 27, 2018			October 28, 2017			October 27, 2018			October 28, 2017
Reportable segments operating loss	$	(26,760	)		(52,232	)	$	(42,961	)		(67,444	)
Interest expense, net and amortization of deferred financing costs		3,432			2,678			6,684			4,718
Consolidated loss before taxes	$	(30,192	)		(54,910	)	$	(49,645	)		(72,162	)