Intangible Assets and Goodwill (Tables)

6 Months Ended

Oct. 27, 2018

Amortizable Intangible Assets and Unamortizable Intangible Assets

			As of October 27, 2018
Amortizable Intangible Assets	Useful Life		Gross Carrying Amount		Accumulated Amortization			Total
Technology		5-10	$	10,710		(10,608	)	$	102
Other		3-10		6,572		(6,549	)		23
			$	17,282		(17,157	)	$	125

Unamortizable Intangible Assets(a)
Trade name	$	293,400
Publishing contracts		15,894
	$	309,294
Total amortizable and unamortizable intangible assets as of October 27, 2018	$	309,419

			As of October 28, 2017
Amortizable Intangible Assets	Useful Life		Gross Carrying Amount		Accumulated Amortization			Total
Technology		5-10	$	10,710		(10,200	)	$	510
Other		3-10		6,494		(6,438	)		56
			$	17,204		(16,638	)	$	566

Unamortizable Intangible Assets (a)
Trade name	$	293,400
Publishing contracts		15,894
	$	309,294
Total amortizable and unamortizable intangible assets as of October 28, 2017	$	309,860

(a) In fiscal 2018, the Company determined that no impairment was necessary on its other unamortizable intangible assets. During the 26 weeks ended October 27, 2018, the Company experienced comparable store sales that were lower than planned. The Company has evaluated whether this indicates a potential impairment of unamortizable intangible assets as of October 27, 2018. The Company has considered, among other factors, the Company’s fiscal 2019 forecast, significant improvements in its second quarter comparable store sales, and improvements in the current retail environment. Based on that evaluation, the Company determined that there have not been any events or circumstances that indicate that it is more likely than not that the fair value of its unamortizable intangible assets is less than the carrying value. However, the Company’s trade name is at risk of impairment if B&N Retail comparable store sales continue to decline, forecasted holiday sales expectations are not met, store closings accelerate, the assumed long-term discount rate increases, or in general the Company does not achieve its forecasted multi-year strategic plan.

Estimated Amortization Expense

All amortizable intangible assets are being amortized over their useful life on a straight-line basis.

Aggregate Amortization Expense
For the 26 weeks ended October 27, 2018	$	256
For the 26 weeks ended October 28, 2017	$	382

Estimated Amortization Expense
(12 months ending on or about April 30)
2019	$	380
2020	$	1

Aggregate Amortization Expense

Aggregate Amortization Expense
For the 26 weeks ended October 27, 2018	$	256
For the 26 weeks ended October 28, 2017	$	382

Schedule of Goodwill

The carrying amounts of goodwill, which relate to the B&N Retail reporting unit, as of October 27, 2018 and October 28, 2017 are as follows:

	Total Company
Balance as of October 28, 2017	$	207,381
Fiscal 2018 benefit of excess tax amortization (b)		(2,176	)
Fiscal 2018 impairment charge (c)		(133,612	)
Balance as of October 27, 2018	$	71,593

(b) The tax basis of goodwill arising from an acquisition during the 52 weeks ended January 29, 2005 exceeded the related basis for financial reporting purposes by approximately $96,576. In accordance with ASC 740-10-30, Accounting for Income Taxes, the Company is recognizing the tax benefits of amortizing such excess as a reduction of goodwill as it is realized on the Company’s income tax return.

(c) In fiscal 2018, the Company recognized an impairment of its B&N Retail reporting unit goodwill of $133,612. While the Company has initiated a multi-year strategic plan focused on stabilizing sales, improving productivity and reducing expenses, achievement of its long-term goals requires a significant multi-year transformation. During the 26 weeks ended October 27, 2018, the Company experienced comparable store sales and earnings before interest, taxes and depreciation and amortization that were lower than planned. The Company has evaluated whether this indicates a potential impairment of goodwill as of October 27, 2018. The Company has considered, among other factors, the Company’s fiscal 2019 forecast, significant improvements in its second quarter comparable store sales and earnings, and improvements in the current retail environment. Based on that evaluation, the Company determined that there have not been any events or circumstances that indicate that it is more likely than not that the fair value of its reporting unit is less than the carrying value. However, the goodwill of the B&N Retail reporting unit is subject to further risk of impairment if B&N Retail holiday comparable store sales decline, the Company’s cost reduction plans do not materialize, store closings accelerate, the assumed long-term discount rate increases, or in general the Company does not achieve its forecasted multi-year strategic plan.