XML 32 R11.htm IDEA: XBRL DOCUMENT v3.23.2
Segment Reporting (Notes)
 12 Months Ended
Apr. 29, 2023
Segment Reporting
Note 4. Segment Reporting
During the fourth quarter of Fiscal 2023, assets related to our DSS Segment met the criteria for classification as Assets Held for Sale and Discontinued Operations and is no longer a reportable segment. For additional information, see Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Policies.
We have two reportable segments: Retail and Wholesale. Additionally, unallocated shared-service costs, which include various corporate level expenses and other governance functions, are not allocated to any specific reporting segment and continue to be presented as “Corporate Services”.
We identify our segments in accordance with the way our business is managed (focusing on the financial information distributed) and the manner in which our chief operating decision maker allocates resources and assesses financial performance. The following summarizes the three segments. For additional information about this segments operations, see Part I - Item 1. Business.
Retail Segment
The Retail Segment operates 1,366 college, university, and K-12 school bookstores, comprised of 774 physical bookstores and 592 virtual bookstores. Our bookstores typically operate under agreements with the college, university, or K-12 schools to be the official bookstore and the exclusive seller of course materials and supplies, including physical and digital products. The majority of the physical campus bookstores have school-branded e-commerce websites which we operate independently or along with our merchant partners, and which offer students access to affordable course materials and affinity products, including emblematic apparel and gifts. The Retail Segment offers our BNC First Day® equitable and inclusive access programs, consisting of First Day Complete and First Day, which provide faculty requested course materials on or before the first day of class at a discounted rate, as compared to the total retail price for the same course materials if purchased separately. The BNC First Day discounted price is offered as a course fee or included in tuition. Additionally, the Retail Segment offers a suite of digital content and services to colleges and universities, including a variety of open educational resource-based courseware.
Wholesale Segment
The Wholesale Segment is comprised of our wholesale textbook business and is one of the largest textbook wholesalers in the country. The Wholesale Segment centrally sources, sells, and distributes new and used textbooks to approximately 3,000 physical bookstores (including our Retail Segment's 774 physical bookstores) and sources and distributes new and used textbooks to our 592 virtual bookstores. Additionally, the Wholesale Segment sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 340 college bookstores.
Corporate Services
Corporate Services represents unallocated shared-service costs which include corporate level expenses and other governance functions, including executive functions, such as accounting, legal, treasury, information technology, and human resources.
Intercompany Eliminations
The eliminations are primarily related to the following intercompany activities:
•The sales eliminations represent the elimination of Wholesale sales and fulfillment service fees to Retail and the elimination of Retail commissions earned from Wholesale, and
•These cost of sales eliminations represent (i) the recognition of intercompany profit for Retail inventory that was purchased from Wholesale in a prior period that was subsequently sold to external customers during the current period and the elimination of Wholesale service fees charged for fulfillment of inventory for virtual store sales, net of (ii) the elimination of intercompany profit for Wholesale inventory purchases by Retail that remain in ending inventory at the end of the current period.
Our international operations are not material and the majority of the revenue and total assets are within the United States.
As of
April 29, 2023April 30, 2022
Total Assets
Retail $785,900 $875,569 
Wholesale 160,868 159,125 
Corporate Services6,581 5,175 
Sub-Total953,349 1,039,869 
Assets Held for Sale27,430 31,684 
Total Assets$980,779 $1,071,553 
52 weeks ended
April 29, 2023April 30, 2022May 1, 2021
Capital Expenditures from Continuing Operations
Retail$23,098 $31,073 $21,208 
Wholesale1,959 2,472 5,905 
Corporate Services35 62 449 
Total Capital Expenditures$25,092 $33,607 $27,562 
Summarized financial information for our reportable segments is reported below:
52 weeks ended
April 29, 2023
April 30, 2022 (a)
May 1, 2021 (a)
Sales:
Retail$1,491,726 $1,439,664 $1,330,470 
Wholesale106,366 112,246 165,825 
Eliminations (54,884)(56,176)(89,779)
Total Sales$1,543,208 $1,495,734 $1,406,516 
Gross Profit
Retail (b)
$331,344 $322,983 $195,617 
Wholesale18,275 19,782 34,683 
Eliminations (180)67 43 
Total Gross Profit$349,439 $342,832 $230,343 
Selling and Administrative Expenses
Retail$320,730 $315,124 $278,149 
Wholesale15,036 16,000 16,085 
Corporate Services22,000 23,002 22,079 
Eliminations(155)(158)(149)
Total Selling and Administrative Expenses$357,611 $353,968 $316,164 
Depreciation and Amortization
Retail$36,737 $36,635 $39,634 
Wholesale5,373 5,418 5,461 
Corporate Services53 71 109 
Total Depreciation and Amortization$42,163 $42,124 $45,204 
Impairment loss (non-cash) - Retail (c)
$6,008 $6,411 $27,630 
Restructuring and Other Charges (c)
Retail$2,964 $2,118 $5,514 
Wholesale916 (2,131)(1,595)
Corporate Services6,223 957 6,188 
Total Restructuring and Other Charges$10,103 $944 $10,107 
Operating Loss
Retail$(35,095)$(37,305)$(155,310)
Wholesale
(3,050)495 14,732 
Corporate Services(28,276)(24,030)(28,376)
Eliminations (25)225 192 
Total Operating Loss $(66,446)$(60,615)$(168,762)
The following is a reconciliation of segment Operating Loss from Continuing Operations to consolidated Loss from Continuing Operations Before Income Taxes
Total Operating Loss$(66,446)$(60,615)$(168,762)
Interest Expense, net(22,683)(10,096)(8,087)
Total Loss from Continuing Operations Before Income Taxes$(89,129)$(70,711)$(176,849)
(a)In Fiscal 2022 and Fiscal 2021, our business experienced an unprecedented and significant impact as a result of the COVID-19 pandemic. The impact of which affects the comparability of our results of operations and cash flows.
(b)In Fiscal 2022 and 2021, gross margin includes a merchandise inventory loss and write-off of $434 and $14,960, respectively, in the Retail Segment. See Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Policies - Merchandise Inventories.
(c)See Part II - Item 8. Financial Statements and Supplementary Data - Note 9. Supplementary Information.