Discontinued Operations of Barnes & Noble Education

9 Months Ended

Jan. 30, 2016

Discontinued Operations of Barnes & Noble Education

3. Discontinued Operations of Barnes & Noble Education

The Company has recognized the separation of B&N Education in accordance with Accounting Standards Codification (ASC) 205-20, Discontinued Operations. As such, the historical results of Barnes & Noble Education for the 13 and 39 weeks ended January 31, 2015 have been adjusted to include pre-spin B&N Education results and separation-related costs and exclude corporate allocations with B&N Retail, and have been classified as discontinued operations. Additionally, discontinued operations for the 39 weeks ended January 30, 2016 include investment banking fees (as they directly relate to the Spin-Off), as well as pre-spin B&N Education results and separation-related costs and exclude corporate allocation adjustments with B&N Retail.

The following unaudited financial information presents the discontinued operations for the 13 weeks and 39 weeks ended January 30, 2016 and January 31, 2015.

	13 weeks ended					39 weeks ended
	January 30, 2016		January 31, 2015			January 30, 2016			January 31, 2015
Sales	$	—		521,019		$	238,983			1,498,389
Cost of sales and occupancy		—		398,766			186,697			1,153,890
Gross profit		—		122,253			52,286			344,499
Selling and administrative expenses		—		91,231			94,933			264,792
Depreciation and amortization		—		12,583			13,100			37,635
Operating profit (loss) from discontinued operations		—		18,439			(55,747	)		42,072
Interest expense, net and amortization of deferred financing fees		—		30			3			49
Income (loss) before taxes from discontinued operations		—		18,409			(55,750	)		42,023
Income taxes		—		(14,782	)		(16,604	)		21,897
Net income (loss) from discontinued operations	$	—		33,191		$	(39,146	)		20,126

The following unaudited table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations:

	January 31, 2015		May 2, 2015
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	174,620		59,714
Receivables, net		188,477		38,311
Merchandise inventories, net		462,062		297,425
Prepaid expenses and other current assets		73,164		52,176
Short-term deferred taxes		24,023		24,992
Total current assets		922,346		472,618
Property and equipment:
Buildings and leasehold improvements		152,818		149,065
Fixtures and equipment		328,779		335,404
		481,597		484,469
Less accumulated depreciation and amortization		376,863		376,911
Net property and equipment		104,734		107,558
Goodwill		274,070		274,070
Intangible assets, net		200,753		198,190
Other noncurrent assets		34,548		39,883
Total assets classified as discontinued operations in the consolidated balance sheet	$	1,536,451		1,092,319
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable	$	484,167		170,490
Accrued liabilities		189,736		133,123
Total current liabilities		673,903		303,613
Long-term deferred taxes		70,209		66,916
Other long-term liabilities		61,859		34,093
Total liabilities classified as discontinued operations in the consolidated balance sheet	$	805,971		404,622