Segment Reporting

9 Months Ended

Jan. 28, 2017

Segment Reporting

10. Segment Reporting

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

B&N Retail

This segment includes 634 bookstores as of January 28, 2017, 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 Juvenile, 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 28, 2017			January 30, 2016			January 28, 2017			January 30, 2016
B&N Retail	$	1,276,039			1,378,887		$	2,988,471			3,178,590
NOOK		38,434			51,737			114,524			149,568
Elimination (a)		(13,565	)		(16,677	)		(29,657	)		(40,998	)
Total	$	1,300,908			1,413,947		$	3,073,338			3,287,160
Sales by Product Line	13 weeks ended						39 weeks ended
	January 28, 2017			January 30, 2016			January 28, 2017			January 30, 2016
Media (b)		66	%		67	%		69	%		70	%
Digital (c)		3	%		4	%		3	%		5	%
Other (d)		31	%		29	%		28	%		25	%
Total		100	%		100	%		100	%		100	%
Depreciation and Amortization	13 weeks ended						39 weeks ended
	January 28, 2017			January 30, 2016			January 28, 2017			January 30, 2016
B&N Retail	$	25,236			26,853		$	74,756			78,079
NOOK		3,816			8,294			15,327			25,785
Total	$	29,052			35,147		$	90,083			103,864
Operating Income (Loss)	13 weeks ended						39 weeks ended
	January 28, 2017			January 30, 2016			January 28, 2017			January 30, 2016
B&N Retail	$	134,991			153,304		$	106,541			148,166
NOOK		(6,204	)		(19,448	)		(28,408	)		(75,554	)
Total	$	128,787			133,856		$	78,133			72,612
Capital Expenditures	13 weeks ended						39 weeks ended
	January 28, 2017			January 30, 2016			January 28, 2017			January 30, 2016
B&N Retail	$	19,615			15,507		$	68,822			60,051
NOOK		2,313			3,558			4,843			9,734
Total	$	21,928			19,065		$	73,665			69,785
Total Assets (e)	As of January 28, 2017			As of January 30, 2016
B&N Retail	$	1,924,220			2,013,282
NOOK		44,736			75,322
Total	$	1,968,956			2,088,604

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

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

^(c)  Includes NOOK^®, related accessories, eContent and warranties.

^(d)  Includes Toys & Games, café products, gifts and miscellaneous other.

^(e)  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 28, 2017		January 30, 2016		January 28, 2017		January 30, 2016
Reportable segments operating income	$	128,787		133,856	$	78,133		72,612
Interest expense, net and amortization of deferred financing costs		2,076		1,976		5,666		7,233
Consolidated income before taxes	$	126,711		131,880	$	72,467		65,379