Segment Reporting

9 Months Ended

Jan. 31, 2015

Segment Reporting

7. Segment Reporting

The Company’s three operating segments are: B&N Retail, B&N College and NOOK.

B&N Retail

This segment includes 649 bookstores as of January 31, 2015, primarily under the Barnes & Noble Booksellers trade name. These Barnes & Noble stores generally offer a dedicated NOOK^® area, a comprehensive trade book title base, a café, and departments dedicated to Juvenile, Toys & Games, DVDs, Music, Gift, Magazine and Bargain products. 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, barnesandnoble.com, and its publishing operation, Sterling Publishing.

B&N College

This segment includes 717 stores as of January 31, 2015 that are primarily school-owned stores operated under contracts by B&N College and include sales of digital content within the higher education marketplace through Yuzu™. These B&N College stores generally offer course-related materials, which include new and used print textbooks and digital textbooks, which are available for sale or rent, emblematic apparel and gifts, trade books, computer products, NOOK^® products and related accessories, school and dorm supplies, convenience and café items and graduation products.

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, apps and sales of NOOK^® devices and accessories to B&N Retail, B&N College and third-party distribution partners.

Summarized financial information concerning the Company’s reportable segments is presented below:

Sales by Segment	13 weeks ended						39 weeks ended
	January 31, 2015			January 25, 2014			January 31, 2015			January 25, 2014
B&N Retail	$	1,395,917		$	1,410,308		$	3,238,883		$	3,339,533
B&N College		521,019			486,221			1,498,389			1,449,776
NOOK		77,509			156,866			211,402			418,736
Elimination		(33,294	)		(57,605	)		(63,256	)		(148,594	)
Total	$	1,961,151		$	1,995,790		$	4,885,418		$	5,059,451

Sales by Product Line	13 weeks ended						39 weeks ended
	January 31, 2015			January 25, 2014			January 31, 2015			January 25, 2014
Media (a)		69	%		67	%		70	%		68	%
Digital (b)		5	%		9	%		5	%		9	%
Other (c)		26	%		24	%		25	%		23	%
Total		100	%		100	%		100	%		100	%

Depreciation and Amortization	13 weeks ended				39 weeks ended
	January 31, 2015		January 25, 2014		January 31, 2015		January 25, 2014
B&N Retail	$	25,581	$	31,975	$	79,953	$	96,193
B&N College		12,582		11,895		37,635		35,271
NOOK		9,690		10,486		29,997		31,575
Total	$	47,853	$	54,356	$	147,585	$	163,039

Operating Profit (Loss)	13 weeks ended						39 weeks ended
	January 31, 2015			January 25, 2014			January 31, 2015			January 25, 2014
B&N Retail	$	173,010		$	167,639		$	210,127		$	204,757
B&N College		15,527			23,354			38,549			65,200
NOOK		(39,016	)		(72,277	)		(101,513	)		(193,200	)
Total	$	149,521		$	118,716		$	147,163		$	76,757

Capital Expenditures	13 weeks ended				39 weeks ended
	January 31, 2015		January 25, 2014		January 31, 2015		January 25, 2014
B&N Retail	$	13,013	$	11,319	$	48,297	$	45,699
B&N College		10,501		7,285		35,106		28,359
NOOK		4,455		7,437		17,370		22,120
Total	$	27,969	$	26,041	$	100,773	$	96,178

Total Assets (d)	January 31, 2015		January 25, 2014
B&N Retail	$	2,191,225	$	2,279,609
B&N College		1,536,723		1,526,698
NOOK		148,295		334,870
Total	$	3,876,243	$	4,141,177

(a) Includes tangible books, music, movies, rentals and newsstand.

(b) Includes NOOK, related accessories, eContent and warranties.

(c) Includes Toys & Games, café products, college apparel, gifts and miscellaneous other.

(d) Excludes intercompany balances.

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

	13 weeks ended				39 weeks ended
	January 31, 2015		January 25, 2014		January 31, 2015		January 25, 2014
Reportable segments operating profit	$	149,521	$	118,716	$	147,163	$	76,757
Interest expense, net and amortization of deferred financing costs		3,552		7,761		14,774		22,868
Consolidated income before taxes	$	145,969	$	110,955	$	132,389	$	53,889