Commitments and Contingencies

12 Months Ended

Apr. 27, 2019

12.

Commitments and Contingencies

The Company leases retail stores, warehouse facilities, office space and equipment. Substantially all of the B&N Retail stores are leased under non-cancelable agreements, which expire at various dates through 2031 with various renewal options for additional periods. The agreements, which have been classified as operating leases, generally provide for both minimum and percentage rentals and require the Company to pay insurance, taxes and other maintenance costs. Percentage rentals are based on sales performance in excess of specified minimums at various stores.

The Company leases office space in New York, New York, Monroe Township, New Jersey, Reno, Nevada, Lyndhurst, New Jersey and Westbury, New York.

Rental expense under operating leases is as follows:

	Fiscal 2019		Fiscal 2018		Fiscal 2017
Minimum rentals	$	309,586		301,057		302,784
Percentage rentals		959		1,076		1,353
	$	310,545		302,133		304,137

Future minimum annual rentals, excluding percentage rentals, required under B&N Retail leases that had initial, non-cancelable lease terms greater than one year, and NOOK leases as of April 27, 2019 are:

Fiscal Year
2020	$	315,393
2021		263,304
2022		212,850
2023		145,635
2024		90,197
After 2024		97,687
	$	1,125,066

The Company provides for minimum rent expense over the lease terms (including the build-out period) on a straight-line basis. The excess of such rent expense over actual lease payments (net of tenant allowances) is reflected in other long-term liabilities and accrued liabilities in the accompanying balance sheets.

Purchase obligations, which include hardware and software maintenance contracts and inventory purchase commitments, as of April 27, 2019 are as follows:

Less Than 1 Year	$	70,240
1-3 Years		44,467
3-5 Years		1,481
More Than 5 Years		—
Total	$	116,188