Discontinued Operations of Barnes & Noble Education, Inc.

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 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 fiscal 2016 included investment banking fees (as they directly related to the Spin-Off).

The following financial information presents the discontinued operations for fiscal 2016 and fiscal 2015:


	Fiscal 2016			Fiscal 2015
Sales	$	238,983		$	1,772,389
Cost of sales and occupancy		186,697			1,325,814

Gross profit		52,286			446,575
Selling and administrative expenses		94,933			353,087
Depreciation and amortization		13,100			50,509

Operating income (loss) from discontinued operations		(55,747	)		42,979
Interest expense, net and amortization of deferred financing fees		3			210

Income (loss) before income taxes from discontinued operations		(55,750	)		42,769
Income taxes		(16,604	)		39,045

Net income (loss) from discontinued operations	$	(39,146	)	$	3,724

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


	May 2, 2015
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	59,714
Receivables, net		38,311
Merchandise inventories, net		297,425
Prepaid expenses and other current assets		52,176

Total current assets		447,626

Property and equipment:
Buildings and leasehold improvements		149,065
Fixtures and equipment		335,404

		484,469
Less accumulated depreciation and amortization		376,911

Net property and equipment		107,558

Goodwill		274,070
Intangible assets, net		198,190
Other non-current assets		39,883

Total assets classified as discontinued operations in the consolidated balance sheet	$	1,067,327

Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable	$	170,490
Accrued liabilities		133,123

Total current liabilities		303,613
Long-term deferred taxes		41,924
Other long-term liabilities		34,093

Total liabilities classified as discontinued operations in the consolidated balance sheet	$	379,630