Segment Reporting

12 Months Ended

Apr. 29, 2017

Segment Reporting

20. Segment Reporting

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

B&N Retail

This segment includes 633 bookstores as of April 29, 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	52 weeks ended April  29, 2017			52 weeks ended April  30, 2016			52 weeks ended May  2, 2015
B&N Retail	$	3,784,655		$	4,028,614		$	4,108,243
NOOK		146,514			191,520			263,833
Elimination(a)		(36,611	)		(56,290	)		(74,968	)
Total	$	3,894,558		$	4,163,844		$	4,297,108
Sales by Product Line	52 weeks ended April  29, 2017			52 weeks ended April  30, 2016			52 weeks ended May  2, 2015
Media (b)		70	%		70	%		70	%
Digital (c)		3	%		5	%		7	%
Other (d)		27	%		25	%		23	%
Total		100	%		100	%		100	%
Depreciation and Amortization	52 weeks ended April  29, 2017			52 weeks ended April  30, 2016			52 weeks ended May  2, 2015
B&N Retail	$	98,877		$	101,888		$	104,373
NOOK		19,010			33,975			39,292
Total	$	117,887		$	135,863		$	143,665
Operating Income (Loss)	52 weeks ended April  29, 2017			52 weeks ended April  30, 2016			52 weeks ended May  2, 2015
B&N Retail	$	90,663		$	113,296		$	213,355
NOOK		(36,355	)		(98,640	)		(123,161	)
Total	$	54,308		$	14,656		$	90,194
Capital Expenditures	52 weeks ended April  29, 2017			52 weeks ended April  30, 2016			52 weeks ended May  2, 2015
B&N Retail	$	89,706		$	81,277		$	73,783
NOOK		6,552			12,997			21,022
Total	$	96,258		$	94,274		$	94,805

Total Assets(e)	As of April 29, 2017		As of April 30, 2016
B&N Retail	$	1,897,122	$	1,873,381
NOOK(f)		35,799		139,401
Total	$	1,932,921	$	2,012,782

^(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.

^(f)  Decrease in assets is related to the net tax receivable position.

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

	52 weeks ended April 29, 2017			52 weeks ended April  30, 2016			52 weeks ended May  2, 2015
Reportable segments operating income	$	54,308		$	14,656		$	90,194
Interest expense, net and amortization of deferred financing costs		(7,509	)		(8,770	)		(17,678	)
Consolidated income before taxes	$	46,799		$	5,886		$	72,516