Commitments and Contingencies

12 Months Ended

May. 02, 2015

18.

Commitments and Contingencies

The Company leases retail stores, warehouse facilities, office space and equipment. Substantially all of the B&N Retail stores are leased under noncancelable agreements, which expire at various dates through 2031 with various renewal options for additional periods. The agreements, which have been classified as operating leases, generally provide for both minimum and percentage rentals and require the Company to pay insurance, taxes and other maintenance costs. Percentage rentals are based on sales performance in excess of specified minimums at various stores.

B&N College’s contracts are typically for five to ten years, although some extend beyond ten years. Many contracts have a 90 to 120 day cancellation right by B&N College, or by the college or university, without penalty.

The Company leases office space in New York, New York and Santa Clara, California for its NOOK operations (Note 21).

Rental expense under operating leases is as follows:


	Fiscal 2015		Fiscal 2014		Fiscal 2013
Minimum rentals	$	419,602		424,952		413,751
Percentage rentals		108,315		98,467		101,960

	$	527,917		523,419		515,711

Future minimum annual rentals, excluding percentage rentals, required under B&N Retail leases that had initial, noncancelable lease terms greater than one year, under B&N College and NOOK leases as of May 2, 2015 are:


Fiscal Year	(a)
2016	$	438,523
2017		396,514
2018		325,113
2019		257,501
2020		188,248
After 2020		335,849

	$	1,941,748

(a)

Includes B&N College capital lease obligations of $232, $39, $0, $0, $0 and $0 for 2016, 2017, 2018, 2019, 2020 and after 2020, respectively.

The Company provides for minimum rent expense over the lease terms (including the build-out period) on a straight-line basis. The excess of such rent expense over actual lease payments (net of tenant allowances) is reflected in other long-term liabilities and accrued liabilities in the accompanying balance sheets.

Purchase obligations, which includes hardware and software maintenance contracts and inventory purchase commitments, as of May 2, 2015 are as follows:


Less Than 1 Year	$	135,058
1-3 Years		11,347
3-5 Years		284
More Than 5 Years		—

Total	$	146,689