Segment Reporting

9 Months Ended

Jan. 26, 2019

Segment Reporting

8. Segment Reporting

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

B&N Retail

This segment includes 627 bookstores as of January 26, 2019, 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						39 weeks ended
	January 26, 2019			January 27, 2018			January 26, 2019			January 27, 2018
B&N Retail	$	1,214,552			1,210,417		$	2,743,455			2,810,162
NOOK		24,372			30,930			71,405			86,394
Elimination (a)		(7,576	)		(9,576	)		(17,548	)		(20,352	)
Total	$	1,231,348			1,231,771		$	2,797,312			2,876,204

Depreciation and Amortization	13 weeks ended				39 weeks ended
	January 26, 2019		January 27, 2018		January 26, 2019		January 27, 2018
B&N Retail	$	24,347		25,295	$	67,513		72,491
NOOK		2,275		2,950		7,442		9,351
Total	$	26,622		28,245	$	74,955		81,842

Operating Income (Loss)	13 weeks ended						39 weeks ended
	January 26, 2019			January 27, 2018			January 26, 2019			January 27, 2018
B&N Retail	$	83,517			(33,546	)	$	42,407			(95,367	)
NOOK		(4,290	)		(1,329	)		(6,141	)		(6,952	)
Total	$	79,227			(34,875	)	$	36,266			(102,319	)

Capital Expenditures	13 weeks ended				39 weeks ended
	January 26, 2019		January 27, 2018		January 26, 2019		January 27, 2018
B&N Retail	$	26,528		18,833	$	75,507		64,777
NOOK		1,348		1,606		4,215		5,194
Total	$	27,876		20,439	$	79,722		69,971

Total Assets (b)	January 26, 2019		January 27, 2018
B&N Retail	$	1,756,713		1,761,571
NOOK		27,436		26,274
Total	$	1,784,149		1,787,845

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

^(b) Excludes intercompany balances.

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

	13 weeks ended					39 weeks ended
	January 26, 2019		January 27, 2018			January 26, 2019		January 27, 2018
Reportable segments operating income (loss)	$	79,227		(34,875	)	$	36,266		(102,319	)
Interest expense, net and amortization of deferred financing fees		3,372		2,536			10,056		7,254
Consolidated income (loss) before taxes	$	75,855		(37,411	)	$	26,210		(109,573	)