Segment Reporting

3 Months Ended

Jul. 29, 2017

Segment Reporting

7. Segment Reporting

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

B&N Retail

This segment includes 632 bookstores as of July 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	13 weeks ended
	July 29, 2017			July 30, 2016
B&N Retail	$	830,036			881,713
NOOK		29,500			41,048
Elimination (a)		(6,220	)		(8,879	)
Total	$	853,316			913,882
Sales by Product Line	13 weeks ended
	July 29, 2017			July 30, 2016
Media (b)		73	%		72	%
Digital (c)		3	%		4	%
Other (d)		24	%		24	%
Total		100	%		100	%
Depreciation and Amortization	13 weeks ended
	July 29, 2017			July 30, 2016
B&N Retail	$	23,079			24,962
NOOK		3,319			6,075
Total	$	26,398			31,037
Operating Loss	13 weeks ended
	July 29, 2017			July 30, 2016
B&N Retail	$	(12,510	)		(7,367	)
NOOK		(2,702	)		(14,022	)
Total	$	(15,212	)		(21,389	)
Capital Expenditures	13 weeks ended
	July 29, 2017			July 30, 2016
B&N Retail	$	18,899			21,826
NOOK		1,806			976
Total	$	20,705			22,802
Total Assets (e)
	July 29, 2017			July 30, 2016
B&N Retail	$	1,905,471			1,925,281
NOOK(f)		29,887			122,873
Total	$	1,935,358			2,048,154

^(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 loss from reportable segments to loss before taxes in the consolidated financial statements is as follows:

	13 weeks ended
	July 29, 2017			July 30, 2016
Reportable segments operating loss	$	(15,212	)		(21,389	)
Interest expense, net and amortization of deferred financing fees		2,040			1,629
Consolidated loss before taxes	$	(17,252	)		(23,018	)