Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 26, 2019 | Feb. 28, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 26, 2019 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BKS | |
Entity Registrant Name | BARNES & NOBLE INC | |
Entity Central Index Key | 890,491 | |
Current Fiscal Year End Date | --04-29 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small business | false | |
Entity Common Stock, Shares Outstanding | 73,195,430 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Sales | $ 1,231,348 | $ 1,231,771 | $ 2,797,312 | $ 2,876,204 |
Cost of sales and occupancy | 833,990 | 831,745 | 1,946,535 | 1,994,002 |
Gross profit | 397,358 | 400,026 | 850,777 | 882,202 |
Selling and administrative expenses | 269,442 | 271,220 | 717,489 | 767,243 |
Depreciation and amortization | 26,622 | 28,245 | 74,955 | 81,842 |
Asset impairments | 22,067 | 135,436 | 22,067 | 135,436 |
Operating income (loss) | 79,227 | (34,875) | 36,266 | (102,319) |
Interest expense, net and amortization of deferred financing fees | 3,372 | 2,536 | 10,056 | 7,254 |
Income (loss) before taxes | 75,855 | (37,411) | 26,210 | (109,573) |
Income tax provision (benefit) | 8,925 | 26,125 | 3,712 | (5,165) |
Net income (loss) | $ 66,930 | $ (63,536) | $ 22,498 | $ (104,408) |
Income (loss) per common share: | ||||
Basic | $ 0.91 | $ (0.87) | $ 0.31 | $ (1.44) |
Diluted | $ 0.91 | $ (0.87) | $ 0.31 | $ (1.44) |
Weighted average common shares outstanding: | ||||
Basic | 73,022 | 72,649 | 72,881 | 72,566 |
Diluted | 73,317 | 72,649 | 73,075 | 72,566 |
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Net income (loss) | $ 66,930 | $ (63,536) | $ 22,498 | $ (104,408) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) | $ 66,930 | $ (63,536) | $ 22,498 | $ (104,408) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 26, 2019 | Apr. 28, 2018 | Jan. 27, 2018 | ||
Current assets: | |||||
Cash and cash equivalents | $ 15,863 | $ 10,769 | $ 11,500 | ||
Receivables, net | 62,246 | 64,562 | 62,952 | ||
Merchandise inventories, net | 1,000,306 | 958,196 | 975,055 | ||
Prepaid expenses and other current assets | 68,178 | 65,153 | 79,175 | ||
Total current assets | 1,146,593 | 1,098,680 | 1,128,682 | ||
Property and equipment: | |||||
Land and land improvements | 2,541 | 2,541 | 2,541 | ||
Buildings and leasehold improvements | 1,062,749 | 1,080,952 | 1,075,491 | ||
Fixtures and equipment | 1,538,834 | 1,523,485 | 1,650,352 | ||
Property and equipment, gross | 2,604,124 | 2,606,978 | 2,728,384 | ||
Less accumulated depreciation and amortization | 2,358,560 | 2,351,454 | 2,466,032 | ||
Net property and equipment | 245,564 | 255,524 | 262,352 | ||
Goodwill | 71,593 | 71,593 | 73,769 | ||
Intangible assets, net | 303,732 | 309,649 | 309,757 | ||
Other non-current assets | 16,667 | 14,122 | 13,285 | ||
Total assets | 1,784,149 | [1] | 1,749,568 | 1,787,845 | [1] |
Current liabilities: | |||||
Accounts payable | 510,532 | 458,896 | 490,886 | ||
Accrued liabilities | 271,623 | 260,209 | 285,598 | ||
Gift card liabilities | 239,296 | 323,465 | 358,609 | ||
Total current liabilities | 1,021,451 | 1,042,570 | 1,135,093 | ||
Long-term debt | 129,251 | 158,700 | 59,805 | ||
Deferred taxes | 72,147 | 52,044 | 58,118 | ||
Other long-term liabilities | 87,802 | 84,271 | 91,712 | ||
Shareholders' equity: | |||||
Common stock; $0.001 par value; 300,000 shares authorized; 112,763, 112,238 and 112,238 shares issued, respectively | 112 | 112 | 112 | ||
Additional paid-in capital | 1,752,646 | 1,749,555 | 1,747,478 | ||
Accumulated other comprehensive income | 276 | 276 | 315 | ||
Retained earnings | (156,965) | (216,236) | (183,064) | ||
Treasury stock, at cost, 39,738, 39,585 and 39,585 shares, respectively | (1,122,571) | (1,121,724) | (1,121,724) | ||
Total shareholders' equity | 473,498 | 411,983 | 443,117 | ||
Commitments and contingencies | |||||
Total liabilities and shareholders' equity | $ 1,784,149 | $ 1,749,568 | $ 1,787,845 | ||
[1] | (b) Excludes intercompany balances. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 26, 2019 | Apr. 28, 2018 | Jan. 27, 2018 |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 112,763,000 | 112,238,000 | 112,238,000 |
Treasury stock, shares | 39,738,000 | 39,585,000 | 39,585,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - 9 months ended Jan. 26, 2019 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Gains | Retained Earnings | Treasury Stock at Cost |
Balance at Apr. 28, 2018 | $ 411,983 | $ 112 | $ 1,749,555 | $ 276 | $ (216,236) | $ (1,121,724) |
Net income | 22,498 | 22,498 | ||||
Stock-based compensation expense | 3,091 | 3,091 | ||||
Cash dividends declared/paid | (32,874) | (32,874) | ||||
Accrued dividends for long-term incentive awards | (397) | (397) | ||||
Purchase of treasury stock related to stock-based compensation, 153 shares | (847) | (847) | ||||
Adoption of ASU 2014-09 (see Note 1 and Note 4) | 70,044 | 70,044 | ||||
Balance at Jan. 26, 2019 | $ 473,498 | $ 112 | $ 1,752,646 | $ 276 | $ (156,965) | $ (1,122,571) |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) shares in Thousands | 9 Months Ended |
Jan. 26, 2019shares | |
Purchase of treasury stock related to stock-based compensation, shares | 153 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 26, 2019 | Jan. 27, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 22,498 | $ (104,408) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization (including amortization of deferred financing fees) | 76,515 | 83,306 |
Stock-based compensation expense | 3,091 | 4,788 |
Impairment charges | 22,067 | 135,436 |
Deferred taxes | (25,667) | |
Loss on disposal of property and equipment | 699 | 589 |
Net increase (decrease) in other long-term liabilities | 1,474 | (7,599) |
Net (increase) decrease in other non-current assets | 255 | (3,614) |
Changes in operating assets and liabilities, net | 26,291 | 25,302 |
Net cash flows provided by operating activities | 152,890 | 108,133 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (79,722) | (69,971) |
Net cash flows used in investing activities | (79,722) | (69,971) |
Cash flows from financing activities: | ||
Proceeds from credit facility | 912,025 | 877,822 |
Payments on credit facility | (941,474) | (882,917) |
Cash dividends paid | (32,874) | (32,719) |
Purchase of treasury stock related to stock-based compensation | (847) | (653) |
Payment of amended credit facility related fees | (4,425) | |
Cash dividends paid for long-term incentive awards | (479) | (188) |
Net cash flows used in financing activities | (68,074) | (38,655) |
Net increase (decrease) in cash and cash equivalents | 5,094 | (493) |
Cash and cash equivalents at beginning of period | 10,769 | 11,993 |
Cash and cash equivalents at end of period | 15,863 | 11,500 |
Changes in operating assets and liabilities, net: | ||
Receivables, net | 2,316 | 4,342 |
Merchandise inventories, net | (42,110) | (28,146) |
Prepaid expenses and other current assets | (3,025) | 22,641 |
Accounts payable, accrued liabilities and gift card liabilities | 69,110 | 26,465 |
Changes in operating assets and liabilities, net | 26,291 | 25,302 |
Interest | 8,688 | 5,729 |
Income taxes (net of refunds) | 187 | (1,416) |
Non-cash financing activity: | ||
Accrued dividends for long-term incentive awards | $ 1,155 | $ 938 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 26, 2019 | |
Basis of Presentation | The unaudited consolidated financial statements include the accounts of Barnes & Noble, Inc. and its subsidiaries (collectively, Barnes & Noble or the Company). In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly its consolidated financial position as of January 26, 2019 and the results of its operations for the 13 and 39 weeks and its cash flows for the 39 weeks then ended. These consolidated financial statements are condensed and therefore do not include all of the information and footnotes required by generally accepted accounting principles. The consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K Due to the seasonal nature of the business, the results of operations for the 39 weeks ended January 26, 2019 are not indicative of the results expected for the 52 weeks ending April 27, 2019 (fiscal 2019). |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jan. 26, 2019 | |
Recent Accounting Pronouncements | 1. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments 2016-15). 2016-15 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The majority of the Company’s revenue is generated from the sale of product in its retail stores, which will continue to be recognized when control of the product is transferred to the customer. The adoption of Topic 606 resulted in the following changes: 1) presentation of estimated merchandise returns as both an asset, equal to the inventory value net of processing costs, and a corresponding return liability, compared to the previous practice of recording an estimated net return liability; and 2) the timing of revenue recognition for gift card breakage. The Company estimates the portion of the gift card liability for which the likelihood of redemption is remote based upon the Company’s historical redemption patterns. Prior to adoption of Topic 606, the Company recorded this amount in revenue on a straight-line basis over a 12-month The below tables set forth the adjustments to the Company’s consolidated statement of operations and consolidated balance sheet as a result of the newly adopted revenue recognition standard. 13 Weeks Ended January 26, 2019 39 Weeks Ended January 26, 2019 As Reported Balances Impact of As Reported Balances Impact of Sales $ 1,231,348 1,239,399 (8,051 ) $ 2,797,312 2,807,015 (9,703 ) Cost of sales and occupancy 833,990 833,990 — 1,946,535 1,946,535 — Gross profit $ 397,358 405,409 (8,051 ) $ 850,777 860,480 (9,703 ) January 26, 2019 As Reported Balances Without Impact of Adoption Assets Prepaid expenses and other current assets $ 68,178 68,449 (271 ) Liabilities and Shareholders’ Equity Accrued liabilities $ 271,623 270,516 1,107 Gift card liabilities $ 239,296 319,739 (80,443 ) Deferred taxes $ 72,147 52,044 20,103 Retained earnings $ (156,965 ) (218,684 ) 61,719 Recent Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02), 2016-02 right-of-use 2016-02 2016-02 |
Asset Impairments
Asset Impairments | 9 Months Ended |
Jan. 26, 2019 | |
Asset Impairments | 2. Asset Impairments The following table summarizes the Company’s asset impairment charges for the 13 and 39 weeks ended January 26, 2019 and January 27, 2018. 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Store impairment $ 16,473 1,824 $ 16,473 1,824 Publishing contracts impairment 5,594 — 5,594 — Goodwill impairment — 133,612 — 133,612 Total Asset Impairments $ 22,067 135,436 $ 22,067 135,436 The costs in excess of net assets of businesses acquired are carried as goodwill in the accompanying consolidated balance sheets. ASC 350-30, Goodwill and Other Intangible Assets Historically, the Company completed its annual goodwill and trade name impairment test as of the first day of its fiscal third quarter (November) of each fiscal year. During the 13 weeks ended January 26, 2019, the Company voluntarily changed the date of its annual goodwill and trade name impairment testing from the first day of fiscal November to the first day of fiscal January. This voluntary change is preferable as it better aligns the timing of the goodwill and trade name impairment testing with the Company’s strategic and annual operating planning process and allows for the inclusion of the most recent holiday sales results in the quantitative and qualitative considerations of the annual impairment tests. The voluntary change in accounting principle related to the annual testing date will not delay, accelerate or avoid an impairment charge. This change is not applied retrospectively as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change will be applied prospectively. The Company completed its annual goodwill impairment test as of the first day of the third quarter of fiscal 2019 (October 28, 2018). The fair value of the B&N Retail reporting unit exceeded its carrying value and no impairment existed. The Company completed its new annual goodwill impairment test as of the first day of fiscal January (December 30, 2018). The fair value of the B&N Retail reporting unit exceeded its carrying value and no impairment existed. Although no impairment existed, the Company’s goodwill is at risk of impairment if B&N Retail comparable store sales decline, store closings accelerate, the assumed long-term discount rate increases, or in general the Company does not achieve its forecasted multi-year strategic plan. The Company completed its annual goodwill impairment test as of the first day of the third quarter of fiscal 2018 (October 29, 2017). The fair value of the B&N Retail reporting unit exceeded its carrying value based on the annual goodwill impairment test performed as of that date. Subsequent to the annual goodwill impairment test as of October 29, 2017, sales trends unexpectedly softened during the holiday selling season. Given the lower than expected sales results, the Company revised its forecasted outlook. Following the announcement on January 4, 2018 of the Company’s holiday sales results and its revised outlook, the market price of the Company’s common stock sharply declined. Due to those new impairment indicators, the Company performed an interim goodwill impairment test as of December 30, 2017. As a result of the interim testing, the Company recognized an impairment of its B&N Retail reporting unit goodwill of $133,612 during the 13 weeks ended January 27, 2018. The Company completed its annual other unamortizable intangible assets impairment test as of the first day of the third quarter of fiscal 2019 (October 28, 2018) and determined that no impairment was necessary. The Company completed its new annual other unamortizable intangible assets impairment test as of the first day of fiscal January (December 30, 2018) and determined that no impairment was necessary. Although no impairment was necessary, the Company’s trade name is at risk of impairment if B&N Retail comparable store sales decline, store closings accelerate, the assumed long-term discount rate increases, or in general the Company does not achieve its forecasted multi-year strategic plan. The Company completed its annual other unamortizable intangible assets impairment test for its publishing contracts as of the first day of fiscal January (December 30, 2018). As a result of the testing, the Company recognized an impairment of $5,594 during the 13 weeks ended January 26, 2019. The publishing contracts include the value of long-standing relationships with authors, agents and publishers. Given Sterling’s strong history of maintaining such relationships, the Company believes they produce value indefinitely without an identifiable remaining useful life. However, given the increased costs related to these publishing contracts, these contracts were impaired. The Company also reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and considers market participants in accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets |
Merchandise Inventories
Merchandise Inventories | 9 Months Ended |
Jan. 26, 2019 | |
Merchandise Inventories | 3. Merchandise Inventories Merchandise inventories, except NOOK merchandise inventories, are stated at the lower of cost or market. Cost is determined primarily by the retail inventory method under the first-in, first-out Market is determined based on the estimated net realizable value, which is generally the selling price. Reserves for non-returnable non-returnable The Company also estimates and accrues shortage for the period between the last physical count of inventory and the balance sheet date. Shortage rates are estimated and accrued based on historical rates and can be affected by changes in merchandise mix and changes in actual shortage trends. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jan. 26, 2019 | |
Revenue Recognition | 4. Revenue Recognition On April 29, 2018, the Company adopted Topic 606 using the modified retrospective approach for all contracts not completed as of the adoption date. Financial results for reporting periods beginning after April 28, 2018 are presented in accordance with Topic 606, while prior periods will continue to be reported in accordance with our pre-adoption The primary impact of adopting Topic 606 relates to the timing of revenue recognition for gift card breakage. The Company estimates the portion of the gift card liability for which the likelihood of redemption is remote based upon the Company’s historical redemption patterns. Prior to adoption of Topic 606, the Company recorded this amount in revenue on a straight-line basis over a 12-month In accordance with Topic 606, revenue shall be recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for corresponding goods or services. Substantially all of the Company’s sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product or service, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product or service at the point of sale. Revenue from retail sales is recognized at the point of sale, net of sales tax and estimated future returns. Revenue from eCommerce sales is recognized upon estimated delivery and receipt of the shipment by the Company’s customers. Freight costs are included within the Company’s cost of sales and occupancy. A provision for anticipated merchandise returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. All of the Company’s sales are recognized as revenue on a “net” basis, including sales in connection with any periodic promotions offered to customers. The Company does not treat any promotional offers as expenses. NOOK acquires the rights to distribute digital content from publishers and distributes the content on www.barnesandnoble.com, NOOK ® The Barnes & Noble Membership Program offers members greater discounts and other benefits for products and services, as well as exclusive offers and promotions via e-mail non-refundable 12-month The following table summarizes disaggregated revenue from contracts with customers by product line: Sales by Product Line 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Media (a) 63 % 66 % 67 % 69 % Digital (b) 2 % 2 % 2 % 3 % Other (c) 35 % 32 % 31 % 28 % Total 100 % 100 % 100 % 100 % (a) Includes tangible books, music, movies, rentals and newsstand. (b) Includes NOOK ® (c) Includes Toys & Games, café products, gifts and miscellaneous other. |
Research and Development Costs
Research and Development Costs for Software Products | 9 Months Ended |
Jan. 26, 2019 | |
Research and Development Costs for Software Products | 5. Research and Development Costs for Software Products The Company follows the guidance in ASC 985-20, Cost of Software to Be Sold, Leased or Marketed |
Internal-Use Software and Websi
Internal-Use Software and Website Development Costs | 9 Months Ended |
Jan. 26, 2019 | |
Internal-Use Software and Website Development Costs | 6. Internal-Use Direct costs incurred to develop software for internal use and website development costs are capitalized and amortized over an estimated useful life of three to seven years. The Company capitalized costs, primarily related to labor, consulting, hardware and software, of $9,604 and $12,843 during the 39 weeks ended January 26, 2019 and January 27, 2018, respectively. Amortization of previously capitalized amounts was $5,695 and $5,543 during the 13 weeks ended January 26, 2019 and January 27, 2018, respectively, and $17,382 and $16,388 during the 39 weeks ended January 26, 2019 and January 27, 2018, respectively. Costs related to the design or maintenance of internal-use |
Net Earnings (Loss) per Share
Net Earnings (Loss) per Share | 9 Months Ended |
Jan. 26, 2019 | |
Net Earnings (Loss) per Share | 7. Net Earnings (Loss) per Share In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class non-forfeitable Basic earnings per common share are calculated by dividing the net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted net income per common share reflects the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock method or two-class During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. Due to the net loss during the 13 and 39 weeks ended January 27, 2018, participating securities in the amounts of 142,237 and 123,066, respectively, were excluded from the calculation of loss per share using the two-class non-participating two-class The following is a reconciliation of the Company’s basic and diluted income (loss) per share calculation: 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Numerator for basic income (loss) per share: Net income (loss) $ 66,930 (63,536 ) $ 22,498 (104,408 ) Less allocation of dividends to participating securities (25 ) (21 ) (69 ) (59 ) Less allocation of undistributed earnings to participating securities (130 ) — — — Net income (loss) available to common shareholders $ 66,775 (63,557 ) $ 22,429 (104,467 ) Numerator for diluted income (loss) per share: Net income (loss) available to common shareholders $ 66,775 (63,557 ) $ 22,429 (104,467 ) Allocation of undistributed earnings to participating securities 130 — — — Less diluted allocation of undistributed earnings to participating securities (129 ) — — — Net income (loss) available to common shareholders $ 66,776 (63,557 ) $ 22,429 (104,467 ) Denominator for basic income (loss) per share: Basic weighted average common shares 73,022 72,649 72,881 72,566 Denominator for diluted income (loss) per share: Basic weighted average common shares 73,022 72,649 72,881 72,566 Average dilutive options — — — — Average dilutive non-participating 295 — 194 — Diluted weighted average common shares 73,317 72,649 73,075 72,566 Income (loss) per common share: Basic $ 0.91 (0.87 ) $ 0.31 (1.44 ) Diluted $ 0.91 (0.87 ) $ 0.31 (1.44 ) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jan. 26, 2019 | |
Segment Reporting | 8. Segment Reporting The Company’s two operating segments are B&N Retail and NOOK. B&N Retail This segment includes 627 bookstores as of January 26, 2019, 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 Kids, Toys & Games, DVDs, Music & Vinyl, Gift, Magazine, Bargain products and a dedicated NOOK ® NOOK This segment includes the Company’s digital business, including the development and support of the Company’s NOOK ® ® Summarized financial information concerning the Company’s reportable segments is presented below: Sales by Segment 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 1,214,552 1,210,417 $ 2,743,455 2,810,162 NOOK 24,372 30,930 71,405 86,394 Elimination (a) (7,576 ) (9,576 ) (17,548 ) (20,352 ) Total $ 1,231,348 1,231,771 $ 2,797,312 2,876,204 Depreciation and Amortization 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 24,347 25,295 $ 67,513 72,491 NOOK 2,275 2,950 7,442 9,351 Total $ 26,622 28,245 $ 74,955 81,842 Operating Income (Loss) 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 83,517 (33,546 ) $ 42,407 (95,367 ) NOOK (4,290 ) (1,329 ) (6,141 ) (6,952 ) Total $ 79,227 (34,875 ) $ 36,266 (102,319 ) Capital Expenditures 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 26,528 18,833 $ 75,507 64,777 NOOK 1,348 1,606 4,215 5,194 Total $ 27,876 20,439 $ 79,722 69,971 Total Assets (b) January 26, January 27, B&N Retail $ 1,756,713 1,761,571 NOOK 27,436 26,274 Total $ 1,784,149 1,787,845 (a) Represents sales from NOOK to B&N Retail on a sell-through basis. (b) Excludes intercompany balances. A reconciliation of operating income (loss) from reportable segments to income (loss) before taxes in the consolidated financial statements is as follows: 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Reportable segments operating income (loss) $ 79,227 (34,875 ) $ 36,266 (102,319 ) Interest expense, net and amortization of deferred financing fees 3,372 2,536 10,056 7,254 Consolidated income (loss) before taxes $ 75,855 (37,411 ) $ 26,210 (109,573 ) |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Jan. 26, 2019 | |
Intangible Assets and Goodwill | 9. Intangible Assets and Goodwill As of January 26, 2019 Amortizable Intangible Assets Useful Gross Carrying Accumulated Total Other 3-10 $ 6,611 (6,579 ) $ 32 $ 6,611 (6,579 ) $ 32 Unamortizable Intangible Assets (a) Trade name Publishing Total Balance at January 27, 2018 $ 293,400 $ 15,894 $ 309,294 Impairment — (5,594 ) (5,594 ) Balance at January 26, 2019 $ 293,400 $ 10,300 $ 303,700 Total amortizable and unamortizable intangible assets as of January 26, 2019 $ 303,732 As of January 27, 2018 Amortizable Intangible Assets Useful Gross Carrying Accumulated Total Technology 5-10 $ 10,710 (10,303 ) $ 407 Other 3-10 6,524 (6,468 ) 56 $ 17,234 (16,771 ) $ 463 Unamortizable Intangible Assets (a) Trade name $ 293,400 Publishing contracts 15,894 $ 309,294 Total amortizable and unamortizable intangible assets as of January 27, 2018 $ 309,757 (a) See Note 3 to these Consolidated Financial Statements. All amortizable intangible assets are being amortized over their useful life on a straight-line basis. Aggregate Amortization Expense For the 39 weeks ended January 26, 2019 $ 388 For the 39 weeks ended January 27, 2018 $ 514 Estimated Amortization Expense (12 months ending on or about April 30) 2019 $ 404 2020 $ 16 The carrying amounts of goodwill, which relate to the B&N Retail reporting unit, was $71,593 and $73,769 as of January 26, 2019 and January 27, 2018, respectively. See Note 3 to these Consolidated Financial Statements. |
Gift Cards
Gift Cards | 9 Months Ended |
Jan. 26, 2019 | |
Gift Cards | 10. Gift Cards The Company sells gift cards, which can be used in its stores, on www.barnesandnoble.com, on NOOK ® 12-month The Company’s contract liabilities relate to its gift card program. Below is a summary of the changes during the 39 weeks ended January 26, 2019: Total Company Gift card liabilities balance as of April 28, 2018 $ 323,465 Adoption of Topic 606 (90,147 ) Gift card breakage (36,304 ) Gift card redemptions (189,527 ) Gift card issuances 231,809 Gift card liabilities balance as of January 26, 2019 $ 239,296 The Company recognized gift card breakage of $28,258 and $27,496 during the 13 weeks ended January 26, 2019 and January 27, 2018, respectively, and $36,304 and $37,224 during the 39 weeks ended January 26, 2019 and January 27, 2018, respectively. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 9 Months Ended |
Jan. 26, 2019 | |
Other Long-Term Liabilities | 11. Other Long-Term Liabilities Other long-term liabilities consist primarily of deferred rent, long-term insurance liabilities, asset retirement obligations and tax liabilities and reserves. The Company provides for minimum rent expense over the lease terms (including the build-out January 26, January 27, April 28, Deferred rent $ 51,747 52,087 50,720 Insurance liabilities 12,675 13,498 12,589 Asset retirement obligations 15,055 13,207 11,629 Tax liabilities and reserves 5,124 8,711 5,124 Other 3,201 4,209 4,209 Total other long-term liabilities $ 87,802 91,712 84,271 |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 26, 2019 | |
Income Taxes | 12. Income Taxes The Company recorded an income tax provision of $8,925 on a pre-tax pre-tax The Company recorded an income tax provision of $3,712 on a pre-tax pre-tax The Company’s effective tax rates for the 13 and 39 weeks ended January 26, 2019 differ from the statutory rates due to the impact of permanent items such as meals and entertainment, non-deductible non-deductible During the 13 weeks ended January 26, 2019 and January 27, 2018 and the 39 weeks ended January 26, 2019 and January 27, 2018, the Company recognized tax expense of $8, $11, $722 and $915, respectively, in accordance with ASU 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting The Company believes that it is reasonably possible that approximately $477 of the remaining unrecognized tax benefits may be recognized within the next twelve months, as a result of settlement of certain tax audits or lapses of statutes of limitations, which could impact the effective tax rate. Effects of the Tax Cuts and Jobs Act New tax legislation, commonly referred to as the Tax Cuts and Jobs Act or Tax Reform, was enacted on December 22, 2017. Certain aspects of the new law, including the federal corporate tax rate change, were recorded in the Company’s financial statements during fiscal year end 2018 as a provisional estimate under the Securities and Exchange Commission (SEC) staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allowed registrants to record provisional amounts during a one year “measurement period” similar to that used when accounting for business combinations. Items for which a reasonable estimate was determined include the impact of the change in the corporate tax rate from 35% to 21% and the changes to the non-deductible non-deductible 2018-68 Valuation Allowance Considerations The Company routinely performs an analysis of its deferred tax assets and considers all evidence both positive and negative to determine realizability of these assets. As a result of the Company’s analysis, $3,894 of previously established valuation allowance against definite lived net operating losses was released through retained earnings as a direct result of the Company’s adoption of Topic 606 during the first quarter of fiscal 2019. The Company still maintains a valuation allowance against certain state items and definite lived net operating losses that was recorded in prior periods. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Jan. 26, 2019 | |
Fair Values of Financial Instruments | 13. Fair Values of Financial Instruments In accordance with ASC 820, Fair Value Measurements and Disclosures Level 1 – Observable inputs that reflect quoted prices in active markets Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions The Company’s financial instruments include cash, receivables, gift cards, accrued liabilities, accounts payable and its credit facility. The fair values of cash, receivables, gift cards, accrued liabilities and accounts payable approximate carrying values because of the short-term nature of these instruments. The Company believes that its credit facility approximates fair value since interest rates are adjusted to reflect current rates. |
Credit Facility
Credit Facility | 9 Months Ended |
Jan. 26, 2019 | |
Credit Facility | 14. Credit Facility On August 3, 2015, the Company and certain of its subsidiaries entered into a credit agreement (Credit Agreement) with Bank of America, N.A., as administrative agent, collateral agent and swing line lender, and the other lenders from time to time party thereto, under which the lenders committed to provide a five-year asset-backed revolving credit facility in an aggregate committed principal amount of up to $700,000 (Revolving Credit Facility). On September 30, 2016, the Company amended the Credit Agreement to provide for a new “first-in, last-out” Proceeds from the Amended Credit Facility are primarily used for general corporate purposes, including seasonal working capital needs. The Amended Credit Facility is secured by substantially all of the inventory, accounts receivable and related assets of the Company and certain of its subsidiaries (collectively, the Loan Parties), but excluding the equity interests in the Company and its subsidiaries, intellectual property, equipment and certain other property. Borrowings under the Amended Credit Facility are limited to a specified percentage of eligible collateral. The Company has the option to request an increase in commitments under the Amended Credit Facility of up to $250,000, subject to certain restrictions. The Amended Credit Facility allows the Company to declare and pay up to $70,000 in dividends annually to its stockholders without compliance with any availability or ratio-based limitations. Interest under the Revolving Credit Facility accrues, at the election of the Company, at a LIBOR or alternate base rate, plus, in each case, an applicable interest rate margin between LIBOR plus 1.750% per annum and LIBOR plus 1.250% per annum or between the alternate base rate plus 0.750% per annum and the alternate base rate plus 0.250% per annum based upon the average daily availability under the Revolving Credit Facility for the immediately preceding fiscal quarter. Interest under the FILO Credit Facility accrues, at the election of the Company, at a LIBOR or alternate base rate, plus, in each case, an applicable interest rate margin, which is also determined by reference to the level of excess availability under the Revolving Credit Facility. Loans under the FILO Credit Facility bear interest at 1.000% per annum more than loans under the Revolving Credit Facility. The Amended Credit Agreement contains customary negative covenants, which limit the Company’s ability to incur additional indebtedness, create liens, make investments, make restricted payments or specified payments and merge or acquire assets, among other things. In addition, if excess availability under the Amended Credit Facility were to fall below certain specified levels, certain additional covenants (including fixed charge coverage ratio requirements) would be triggered, and the lenders would assume dominion and control over the Loan Parties’ cash. The Amended Credit Agreement contains customary events of default, including payment defaults, material breaches of representations and warranties, covenant defaults, default on other material indebtedness, customary ERISA events of default, bankruptcy and insolvency, material judgments, invalidity of liens on collateral, change of control or cessation of business. The Amended Credit Agreement also contains customary affirmative covenants and representations and warranties. The Company wrote off $275 of deferred financing fees related to the Credit Facility during the 13 weeks ended July 28, 2018 and the remaining unamortized deferred financing fees of $3,780 were deferred and are being amortized over the five-year term of the Amended Credit Facility. The Company also incurred $4,425 of fees to secure the Amended Credit Facility, which are being amortized over the five-year term accordingly. The Company had $129,251 and $59,805 of outstanding debt under the Credit Facility as of January 26, 2019 and January 27, 2018, respectively. The Company had $33,213 and $35,233 of outstanding letters of credit under the Credit Facility as of January 26, 2019 and January 27, 2018, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jan. 26, 2019 | |
Stock-Based Compensation | 15. Stock-Based Compensation For the 13 and 39 weeks ended January 26, 2019 and January 27, 2018, the Company recognized stock-based compensation expense in selling and administrative expenses as follows: 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Restricted Stock Expense $ 284 250 $ 701 697 Restricted Stock Units Expense 679 1,032 1,767 3,020 Performance-Based Stock Unit Expense 425 374 623 1,071 Stock-Based Compensation Expense $ 1,388 1,656 $ 3,091 4,788 |
Defined Contribution Plan
Defined Contribution Plan | 9 Months Ended |
Jan. 26, 2019 | |
Defined Contribution Plan | 16. Defined Contribution Plan The Company maintains a defined contribution plan (the Savings Plan) for the benefit of substantially all employees. Total Company contributions charged to employee benefit expenses for the Savings Plan were $2,283 and $2,660 for the 13 weeks ended January 26, 2019 and January 27, 2018, respectively, and $7,433 and $8,498 for the 39 weeks ended January 26, 2019 and January 27, 2018, respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jan. 26, 2019 | |
Shareholders' Equity | 17. Shareholders’ Equity On March 15, 2017, the Company’s Board of Directors authorized a stock repurchase program of up to $50,000 of its common shares. Stock repurchases under this program may be made through open market and privately negotiated transactions from time to time and in such amounts as management deems appropriate. The stock repurchase program has no expiration date and may be suspended or discontinued at any time. The Company’s repurchase plan is intended to comply with the requirements of Rule 10b-18 As of January 26, 2019, the Company has repurchased 39,737,720 shares at a cost of approximately $1,087,913 since the inception of the Company’s current and prior stock repurchase programs. The repurchased shares are held in treasury. On October 3, 2018, the Company’s Board of Directors approved the adoption of a short-term stockholder rights plan (Rights Plan) with an expiration date of October 2, 2019 and ownership trigger threshold of 20%. In connection with the Rights Plan, the Company’s Board of Directors authorized and declared a dividend, payable to stockholders of record on October 13, 2018, of one right (Right) per each share of common stock outstanding, to purchase 1/1,000th of a share of Series K Preferred Stock, par value $0.001 per share, of the Company, at a price of $24.00 per share (such amount, as may be adjusted from time to time as provided in the Rights Agreement, the Purchase Price). If a person or group acquires beneficial ownership of 20% or more of the common shares outstanding or announces a tender offer or exchange offer, the consummation of which would result in such person or group beneficially owning 20% or more of the common shares outstanding, in each case, without prior approval of the Company’s Board of Directors, each holder of a Right (other than acquiring person or group whose Rights will become void) will have the right to purchase, upon payment of the Purchase Price and in accordance with the terms of the Rights Plan, a number of common shares having a market value of twice the Purchase Price. The complete terms of the Rights are set forth in a Rights Agreement (Rights Agreement) dated as of October 3, 2018, between the Company and Computershare Trust Company, N.A., as rights agent. The Rights expire on October 2, 2019 or upon an earlier redemption or exchange as provided in the Rights Agreement. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Jan. 26, 2019 | |
Legal Proceedings | 18. Legal Proceedings The Company is involved in a variety of claims, suits, investigations and proceedings that arise from time to time in the ordinary course of its business, including actions with respect to contracts, intellectual property, taxation, employment, benefits, securities, personal injuries and other matters. The results of these proceedings in the ordinary course of business are not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations. The Company records a liability when it believes that it is both probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Company evaluates, at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount of a loss or potential loss. The Company may be unable to reasonably estimate the reasonably possible loss or range of loss for a particular legal contingency for various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if proceedings are in the early stages; (iii) if there is uncertainty as to the outcome of pending proceedings (including motions and appeals); (iv) if there is uncertainty as to the likelihood of settlement and the outcome of any negotiations with respect thereto; (v) if there are significant factual issues to be determined or resolved; (vi) if the proceedings involve a large number of parties; (vii) if relevant law is unsettled or novel or untested legal theories are presented; or (viii) if the proceedings are taking place in jurisdictions where the laws are complex or unclear. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. With respect to the legal matters described below, the Company has determined, based on its current knowledge, that the amount of loss or range of loss that is reasonably possible, including any reasonably possible losses in excess of amounts already accrued, is not reasonably estimable. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company’s control. As such, there can be no assurance that the final outcome of these matters will not materially and adversely affect the Company’s business, financial condition, results of operations, or cash flows. The following is a discussion of the material legal matters involving the Company. PIN Pad Litigation As previously disclosed, the Company discovered that PIN pads in certain of its stores had been tampered with to allow criminal access to card data and PIN numbers on credit and debit cards swiped through the terminals. Following public disclosure of this matter on October 24, 2012, the Company was served with four putative class action complaints (three in federal district court in the Northern District of Illinois and one in the Northern District of California), each of which alleged on behalf of national and other classes of customers who swiped credit and debit cards in Barnes & Noble Retail stores common law claims such as negligence, breach of contract and invasion of privacy, as well as statutory claims such as violations of the Fair Credit Reporting Act, state data breach notification statutes, and state unfair and deceptive practices statutes. The actions sought various forms of relief including damages, injunctive or equitable relief, multiple or punitive damages, attorneys’ fees, costs, and interest. All four cases were transferred and/or assigned to a single judge in the United States District Court for the Northern District of Illinois, and a single consolidated amended complaint was filed. The Company filed a motion to dismiss the consolidated amended complaint in its entirety, and in September 2013, the Court granted the motion to dismiss without prejudice. Plaintiffs then filed an amended complaint, and the Company filed a second motion to dismiss. On October 3, 2016, the Court granted the second motion to dismiss, and dismissed the case without prejudice; in doing so, the Court permitted Plaintiffs to file a second amended complaint by October 31, 2016. On October 31, 2016, Plaintiffs filed a second amended complaint, and on January 25, 2017, the Company filed a motion to dismiss the second amended complaint. On June 13, 2017, the Court granted the Company’s motion to dismiss with prejudice. Plaintiffs filed a notice of appeal to the United States Court of Appeals for the Seventh Circuit. On April 11, 2018, the Court of Appeals reversed the District Court’s decision granting the motion to dismiss the case, and remanded the case to the District Court for further proceedings. The Company filed with the Court of Appeals a petition for rehearing and rehearing en banc; that petition was denied on May 10, 2018. The case is currently pending in the District Court. Cassandra Carag individually and on behalf of others similarly situated v. Barnes & Noble, Inc., Barnes & Noble Booksellers, Inc. and DOES 1 through 100 inclusive On November 27, 2013, former Associate Store Manager Cassandra Carag (Carag) brought suit in Sacramento County Superior Court, asserting claims on behalf of herself and all other hourly (non-exempt) Barnes & Noble employees in California in the preceding four years for unpaid regular and overtime wages based on alleged off-the-clock work, penalties and pay based on missed meal and rest breaks, and for improper wage statements, payroll records, and untimely pay at separation as a result of the alleged pay errors during employment. Via the complaint, Carag seeks to recover unpaid wages and statutory penalties for all hourly Barnes & Noble employees within California from November 27, 2009 to present. On February 13, 2014, the Company filed an answer to the complaint in the state court and concurrently requested removal of the action to federal court. On May 30, 2014, the federal court granted Plaintiff’s motion to remand the case to state court and denied Plaintiff’s motion to strike portions of the answer to the complaint (referring the latter motion to the lower court for future consideration). Plaintiff sought relief from the mandatory five-year trial deadline and the Court denied the application. Café Manager Class Action On September 20, 2016, Kelly Brown filed a complaint against Barnes & Noble in the U.S. District Court for the Southern District of New York in which she alleges that she is entitled to unpaid compensation under the Fair Labor Standards Act (FLSA) and Illinois law. Ms. Brown seeks to represent a class of allegedly similarly situated employees who performed the same position (Café Manager) under the FLSA, as well as an Illinois-based class under Illinois law. On November 9, 2016, Ms. Brown filed an amended complaint to add an additional plaintiff named Tiffany Stewart, who is a former Café Manager who also alleges unpaid overtime compensation in violation of New York law and seeks to represent a class of similarly situated New York-based Café Managers under New York law. On May 2, 2017, the Court denied Plaintiffs’ Motion for Conditional Certification, without prejudice. Plaintiffs filed a renewed motion for Conditional Certification on November 17, 2017, which the Court denied on June 25, 2018. There are currently 24 former Café Managers who have joined the action as opt-in plaintiffs. Bernardino v. Barnes & Noble Booksellers, Inc. On June 16, 2017, a putative class action complaint was filed against Barnes & Noble Booksellers, Inc. (B&N Booksellers) in the United States District Court for the Southern District of New York, alleging violations of the federal Video Privacy Protection Act and related New York law. The plaintiff, who seeks to represent a class of subscribers of Facebook, Inc. (Facebook) who purchased DVDs or other video media from the Barnes & Noble website, seeks damages, injunctive relief and attorneys’ fees, among other things, based on her allegation that B&N Booksellers supposedly knowingly disclosed her personally identifiable information to Facebook without her consent when she bought a DVD from Barnes & Noble’s website. On July 10, 2017, the plaintiff moved for a preliminary injunction requiring Barnes & Noble to change the operation of its website, which motion B&N Booksellers opposed. On July 31, 2017, B&N Booksellers moved to compel the case to arbitration, consistent with the terms of use on Barnes & Noble’s website. On August 28, 2017, the court denied the plaintiff’s motion for a preliminary injunction. On January 31, 2018, the court granted B&N Booksellers’ motion to compel arbitration, and the clerk of court closed the case on February 1, 2018. On March 2, 2018, the plaintiff filed an appeal in the United States Court of Appeals for the Second Circuit from the district court’s grant of B&N Booksellers’ motion to compel arbitration. Parneros v. Barnes & Noble, Inc. On August 28, 2018, Demos Parneros, the former Chief Executive Officer of Barnes & Noble, Inc., filed a complaint against Barnes & Noble, Inc. in the United States District Court for the Southern District of New York. The plaintiff asserts claims for breach of contract and defamation under New York law. On October 5, 2018, the plaintiff filed an amended complaint asserting a third cause of action for breach of the covenant of good faith and fair dealing. The plaintiff seeks injunctive relief, compensatory damages, and punitive damages, among other things, based on allegations that he did not violate the Company’s policies prior to his employment termination, and that the Company’s press release damaged his reputation. On October 30, 2018, Barnes & Noble, Inc. filed its answer, affirmative defenses and counterclaims. Specifically, the Company asserted counterclaims for breach of fiduciary duty and faithless servant, based on allegations that the plaintiff violated his fiduciary duties of loyalty and good faith in connection with a potential transaction, as well as for a declaratory judgment that the plaintiff’s outstanding equity awards at the time of his termination were subject to cancellation under the Company’s Amended and Restated 2009 Incentive Plan. Barnes & Noble, Inc. seeks, among other things, damages in connection with the plaintiff’s breach of his fiduciary duties. The Court held an initial conference on November 13, 2018. The Court adopted the parties’ proposed scheduling order, which provides, inter alia, that discovery will be completed by June 14, 2019, that dispositive motions will be completed by August 23, 2019, and that the parties will be ready for trial on or after October 23, 2019. On December 21, 2018, the plaintiff moved to dismiss the Company’s faithless servant counterclaim, and the Company filed an opposition on January 18, 2019. The plaintiff has also filed a motion for advancement of 50% of his attorneys’ fees and expenses incurred in defending against the Company’s counterclaims. The Company filed an opposition to that motion on February 15, 2019. The plaintiff filed reply papers on March 1, 2019. Vickie Hebert individually and on behalf of others similarly situated v. Barnes & Noble, Inc., and DOES 1 through 100 inclusive On February 6, 2019, Vicki Hebert filed a complaint against Barnes & Noble in the Superior Court of the State of California, County of San Diego in which she alleges that she is entitled to statutory and punitive damages under the Fair Credit Reporting Act (FCRA). Ms. Hebert seeks to represent a class of allegedly similarly situated individuals for whom Barnes & Noble procured a consumer report for reporting purposes under the FCRA. The Company has until April 2, 2019 to answer, move or otherwise respond to the complaint. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jan. 26, 2019 | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments 2016-15). 2016-15 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The majority of the Company’s revenue is generated from the sale of product in its retail stores, which will continue to be recognized when control of the product is transferred to the customer. The adoption of Topic 606 resulted in the following changes: 1) presentation of estimated merchandise returns as both an asset, equal to the inventory value net of processing costs, and a corresponding return liability, compared to the previous practice of recording an estimated net return liability; and 2) the timing of revenue recognition for gift card breakage. The Company estimates the portion of the gift card liability for which the likelihood of redemption is remote based upon the Company’s historical redemption patterns. Prior to adoption of Topic 606, the Company recorded this amount in revenue on a straight-line basis over a 12-month The below tables set forth the adjustments to the Company’s consolidated statement of operations and consolidated balance sheet as a result of the newly adopted revenue recognition standard. 13 Weeks Ended January 26, 2019 39 Weeks Ended January 26, 2019 As Reported Balances Impact of As Reported Balances Impact of Sales $ 1,231,348 1,239,399 (8,051 ) $ 2,797,312 2,807,015 (9,703 ) Cost of sales and occupancy 833,990 833,990 — 1,946,535 1,946,535 — Gross profit $ 397,358 405,409 (8,051 ) $ 850,777 860,480 (9,703 ) January 26, 2019 As Reported Balances Without Impact of Adoption Assets Prepaid expenses and other current assets $ 68,178 68,449 (271 ) Liabilities and Shareholders’ Equity Accrued liabilities $ 271,623 270,516 1,107 Gift card liabilities $ 239,296 319,739 (80,443 ) Deferred taxes $ 72,147 52,044 20,103 Retained earnings $ (156,965 ) (218,684 ) 61,719 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02), 2016-02 right-of-use 2016-02 2016-02 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Summary of Impact of Adoption of New Accounting Pronouncements on Company's Statement of Earnings and Balance Sheets | The below tables set forth the adjustments to the Company’s consolidated statement of operations and consolidated balance sheet as a result of the newly adopted revenue recognition standard. 13 Weeks Ended January 26, 2019 39 Weeks Ended January 26, 2019 As Reported Balances Impact of As Reported Balances Impact of Sales $ 1,231,348 1,239,399 (8,051 ) $ 2,797,312 2,807,015 (9,703 ) Cost of sales and occupancy 833,990 833,990 — 1,946,535 1,946,535 — Gross profit $ 397,358 405,409 (8,051 ) $ 850,777 860,480 (9,703 ) January 26, 2019 As Reported Balances Without Impact of Adoption Assets Prepaid expenses and other current assets $ 68,178 68,449 (271 ) Liabilities and Shareholders’ Equity Accrued liabilities $ 271,623 270,516 1,107 Gift card liabilities $ 239,296 319,739 (80,443 ) Deferred taxes $ 72,147 52,044 20,103 Retained earnings $ (156,965 ) (218,684 ) 61,719 |
Asset Impairments (Tables)
Asset Impairments (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Summary of the Company's Asset Impairment Charges | The following table summarizes the Company’s asset impairment charges for the 13 and 39 weeks ended January 26, 2019 and January 27, 2018. 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Store impairment $ 16,473 1,824 $ 16,473 1,824 Publishing contracts impairment 5,594 — 5,594 — Goodwill impairment — 133,612 — 133,612 Total Asset Impairments $ 22,067 135,436 $ 22,067 135,436 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Summarized Disaggregated Revenue From Contracts With Customers By Product Line | The following table summarizes disaggregated revenue from contracts with customers by product line: Sales by Product Line 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Media (a) 63 % 66 % 67 % 69 % Digital (b) 2 % 2 % 2 % 3 % Other (c) 35 % 32 % 31 % 28 % Total 100 % 100 % 100 % 100 % (a) Includes tangible books, music, movies, rentals and newsstand. (b) Includes NOOK ® (c) Includes Toys & Games, café products, gifts and miscellaneous other. |
Net Earnings (Loss) per Share (
Net Earnings (Loss) per Share (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Reconciliation of Basic and Diluted Income (loss) Per Share | The following is a reconciliation of the Company’s basic and diluted income (loss) per share calculation: 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Numerator for basic income (loss) per share: Net income (loss) $ 66,930 (63,536 ) $ 22,498 (104,408 ) Less allocation of dividends to participating securities (25 ) (21 ) (69 ) (59 ) Less allocation of undistributed earnings to participating securities (130 ) — — — Net income (loss) available to common shareholders $ 66,775 (63,557 ) $ 22,429 (104,467 ) Numerator for diluted income (loss) per share: Net income (loss) available to common shareholders $ 66,775 (63,557 ) $ 22,429 (104,467 ) Allocation of undistributed earnings to participating securities 130 — — — Less diluted allocation of undistributed earnings to participating securities (129 ) — — — Net income (loss) available to common shareholders $ 66,776 (63,557 ) $ 22,429 (104,467 ) Denominator for basic income (loss) per share: Basic weighted average common shares 73,022 72,649 72,881 72,566 Denominator for diluted income (loss) per share: Basic weighted average common shares 73,022 72,649 72,881 72,566 Average dilutive options — — — — Average dilutive non-participating 295 — 194 — Diluted weighted average common shares 73,317 72,649 73,075 72,566 Income (loss) per common share: Basic $ 0.91 (0.87 ) $ 0.31 (1.44 ) Diluted $ 0.91 (0.87 ) $ 0.31 (1.44 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Summarized Financial Information of Reportable Segments | Summarized financial information concerning the Company’s reportable segments is presented below: Sales by Segment 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 1,214,552 1,210,417 $ 2,743,455 2,810,162 NOOK 24,372 30,930 71,405 86,394 Elimination (a) (7,576 ) (9,576 ) (17,548 ) (20,352 ) Total $ 1,231,348 1,231,771 $ 2,797,312 2,876,204 Depreciation and Amortization 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 24,347 25,295 $ 67,513 72,491 NOOK 2,275 2,950 7,442 9,351 Total $ 26,622 28,245 $ 74,955 81,842 Operating Income (Loss) 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 83,517 (33,546 ) $ 42,407 (95,367 ) NOOK (4,290 ) (1,329 ) (6,141 ) (6,952 ) Total $ 79,227 (34,875 ) $ 36,266 (102,319 ) Capital Expenditures 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, B&N Retail $ 26,528 18,833 $ 75,507 64,777 NOOK 1,348 1,606 4,215 5,194 Total $ 27,876 20,439 $ 79,722 69,971 Total Assets (b) January 26, January 27, B&N Retail $ 1,756,713 1,761,571 NOOK 27,436 26,274 Total $ 1,784,149 1,787,845 (a) Represents sales from NOOK to B&N Retail on a sell-through basis. (b) Excludes intercompany balances. |
Reconciliation of Operating Income (Loss) from Reportable Segments | A reconciliation of operating income (loss) from reportable segments to income (loss) before taxes in the consolidated financial statements is as follows: 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Reportable segments operating income (loss) $ 79,227 (34,875 ) $ 36,266 (102,319 ) Interest expense, net and amortization of deferred financing fees 3,372 2,536 10,056 7,254 Consolidated income (loss) before taxes $ 75,855 (37,411 ) $ 26,210 (109,573 ) |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Amortizable Intangible Assets and Unamortizable Intangible Assets | As of January 26, 2019 Amortizable Intangible Assets Useful Gross Carrying Accumulated Total Other 3-10 $ 6,611 (6,579 ) $ 32 $ 6,611 (6,579 ) $ 32 Unamortizable Intangible Assets (a) Trade name Publishing Total Balance at January 27, 2018 $ 293,400 $ 15,894 $ 309,294 Impairment — (5,594 ) (5,594 ) Balance at January 26, 2019 $ 293,400 $ 10,300 $ 303,700 Total amortizable and unamortizable intangible assets as of January 26, 2019 $ 303,732 As of January 27, 2018 Amortizable Intangible Assets Useful Gross Carrying Accumulated Total Technology 5-10 $ 10,710 (10,303 ) $ 407 Other 3-10 6,524 (6,468 ) 56 $ 17,234 (16,771 ) $ 463 Unamortizable Intangible Assets (a) Trade name $ 293,400 Publishing contracts 15,894 $ 309,294 Total amortizable and unamortizable intangible assets as of January 27, 2018 $ 309,757 (a) See Note 3 to these Consolidated Financial Statements. |
Estimated Amortization Expense | All amortizable intangible assets are being amortized over their useful life on a straight-line basis. Aggregate Amortization Expense For the 39 weeks ended January 26, 2019 $ 388 For the 39 weeks ended January 27, 2018 $ 514 Estimated Amortization Expense (12 months ending on or about April 30) 2019 $ 404 2020 $ 16 |
Aggregate Amortization Expense | Aggregate Amortization Expense For the 39 weeks ended January 26, 2019 $ 388 For the 39 weeks ended January 27, 2018 $ 514 |
Gift Cards (Tables)
Gift Cards (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Contract Liabilities | The Company’s contract liabilities relate to its gift card program. Below is a summary of the changes during the 39 weeks ended January 26, 2019: Total Company Gift card liabilities balance as of April 28, 2018 $ 323,465 Adoption of Topic 606 (90,147 ) Gift card breakage (36,304 ) Gift card redemptions (189,527 ) Gift card issuances 231,809 Gift card liabilities balance as of January 26, 2019 $ 239,296 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Other Long-Term Liabilities | The Company had the following other long-term liabilities at January 26, 2019, January 27, 2018 and April 28, 2018: January 26, January 27, April 28, Deferred rent $ 51,747 52,087 50,720 Insurance liabilities 12,675 13,498 12,589 Asset retirement obligations 15,055 13,207 11,629 Tax liabilities and reserves 5,124 8,711 5,124 Other 3,201 4,209 4,209 Total other long-term liabilities $ 87,802 91,712 84,271 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Stock-Based Compensation Expense in Selling and Administrative Expenses | For the 13 and 39 weeks ended January 26, 2019 and January 27, 2018, the Company recognized stock-based compensation expense in selling and administrative expenses as follows: 13 weeks ended 39 weeks ended January 26, January 27, January 26, January 27, Restricted Stock Expense $ 284 250 $ 701 697 Restricted Stock Units Expense 679 1,032 1,767 3,020 Performance-Based Stock Unit Expense 425 374 623 1,071 Stock-Based Compensation Expense $ 1,388 1,656 $ 3,091 4,788 |
Summary of Impact of Adoption o
Summary of Impact of Adoption of New Accounting Pronouncements on Statement of Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Sales | $ 1,231,348 | $ 1,231,771 | $ 2,797,312 | $ 2,876,204 |
Cost of sales and occupancy | 833,990 | 831,745 | 1,946,535 | 1,994,002 |
Gross profit | 397,358 | $ 400,026 | 850,777 | $ 882,202 |
Calculated under Revenue Guidance in Effect before Topic 606 | ASU 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Sales | 1,239,399 | 2,807,015 | ||
Cost of sales and occupancy | 833,990 | 1,946,535 | ||
Gross profit | 405,409 | 860,480 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Sales | (8,051) | (9,703) | ||
Gross profit | $ (8,051) | $ (9,703) |
Summary of Impact of Adoption_2
Summary of Impact of Adoption of New Accounting Pronouncements on Balance Sheets (Detail) - USD ($) $ in Thousands | Jan. 26, 2019 | Apr. 28, 2018 | Jan. 27, 2018 |
Assets | |||
Prepaid expenses and other current assets | $ 68,178 | $ 65,153 | $ 79,175 |
Liabilities and Shareholders' Equity | |||
Accrued liabilities | 271,623 | 260,209 | 285,598 |
Gift card liabilities | 239,296 | 323,465 | 358,609 |
Deferred taxes | 72,147 | 52,044 | 58,118 |
Retained earnings | (156,965) | (216,236) | $ (183,064) |
Calculated under Revenue Guidance in Effect before Topic 606 | ASU 2014-09 | |||
Assets | |||
Prepaid expenses and other current assets | 68,449 | ||
Liabilities and Shareholders' Equity | |||
Accrued liabilities | 270,516 | ||
Gift card liabilities | 319,739 | 323,465 | |
Deferred taxes | 52,044 | ||
Retained earnings | (218,684) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | |||
Assets | |||
Prepaid expenses and other current assets | (271) | ||
Liabilities and Shareholders' Equity | |||
Accrued liabilities | 1,107 | ||
Gift card liabilities | (80,443) | $ (90,147) | |
Deferred taxes | 20,103 | ||
Retained earnings | $ 61,719 |
Asset Impairments - Summary of
Asset Impairments - Summary of the Company's Asset Impairment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Store impairment | $ 16,473 | $ 1,824 | $ 16,473 | $ 1,824 |
Publishing contracts impairment | 5,594 | 5,594 | ||
Goodwill impairment | 133,612 | 133,612 | ||
Total Asset Impairments | $ 22,067 | $ 135,436 | $ 22,067 | $ 135,436 |
Asset Impairments - Additional
Asset Impairments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Goodwill impairment | $ 133,612 | $ 133,612 | ||
Publishing contracts impairment | $ 5,594 | $ 5,594 | ||
Store impairment | $ 16,473 | $ 1,824 | $ 16,473 | $ 1,824 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 9 Months Ended |
Jan. 26, 2019USD ($) | |
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | |
Deferred Revenue Arrangement [Line Items] | |
Gift card liabilities reclassified amount | $ (90,147,000) |
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | Retained Earnings | |
Deferred Revenue Arrangement [Line Items] | |
Cumulative effect of adjustment, net of tax | 70,044,000 |
Annual Fee | |
Deferred Revenue Arrangement [Line Items] | |
Non-refundable, after first 30 days, annual fee | $ 25 |
Summarized Disaggregated Revenu
Summarized Disaggregated Revenue From Contracts With Customers By Product Line (Detail) | 3 Months Ended | 9 Months Ended | |||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Sales by Product Line | 100.00% | 100.00% | 100.00% | 100.00% | |
Media | |||||
Segment Reporting Information [Line Items] | |||||
Sales by Product Line | [1] | 63.00% | 66.00% | 67.00% | 69.00% |
Digital | |||||
Segment Reporting Information [Line Items] | |||||
Sales by Product Line | [2] | 2.00% | 2.00% | 2.00% | 3.00% |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales by Product Line | [3] | 35.00% | 32.00% | 31.00% | 28.00% |
[1] | (a) Includes tangible books, music, movies, rentals and newsstand. | ||||
[2] | (b) Includes NOOK®, related accessories, eContent and warranties. | ||||
[3] | (c) Includes Toys & Games, café products, gifts and miscellaneous other. |
Internal-use Software and Web_2
Internal-use Software and Website Development Costs - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Software and Software Development Costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 3 years | |||
Capitalized software costs | $ 9,604 | $ 12,843 | ||
Capitalized Computer Software, Amortization | $ 5,695 | $ 5,543 | $ 17,382 | $ 16,388 |
Website Development Costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 7 years |
Net Earnings (Loss) per Share -
Net Earnings (Loss) per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Stock Options and Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from the calculation of earnings per share | 294,874 | 56,776 | 193,804 | 44,279 |
Participating Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from the calculation of earnings per share | 142,237 | 123,066 |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Numerator for basic income (loss) per share: | ||||
Net income (loss) | $ 66,930 | $ (63,536) | $ 22,498 | $ (104,408) |
Less allocation of dividends to participating securities | (25) | (21) | (69) | (59) |
Less allocation of undistributed earnings to participating securities | (130) | |||
Net income (loss) available to common shareholders | 66,775 | (63,557) | 22,429 | (104,467) |
Numerator for diluted income (loss) per share: | ||||
Net income (loss) available to common shareholders | 66,775 | (63,557) | 22,429 | (104,467) |
Allocation of undistributed earnings to participating securities | 130 | |||
Less diluted allocation of undistributed earnings to participating securities | (129) | |||
Net income (loss) available to common shareholders | $ 66,776 | $ (63,557) | $ 22,429 | $ (104,467) |
Denominator for basic income (loss) per share: | ||||
Basic weighted average common shares | 73,022 | 72,649 | 72,881 | 72,566 |
Denominator for diluted income (loss) per share: | ||||
Basic weighted average common shares | 73,022 | 72,649 | 72,881 | 72,566 |
Average dilutive options | 0 | 0 | 0 | 0 |
Average dilutive non-participating securities | 295 | 194 | ||
Diluted weighted average common shares | 73,317 | 72,649 | 73,075 | 72,566 |
Income (loss) per common share: | ||||
Basic | $ 0.91 | $ (0.87) | $ 0.31 | $ (1.44) |
Diluted | $ 0.91 | $ (0.87) | $ 0.31 | $ (1.44) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Jan. 26, 2019StoreSegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
B&N Retail | |
Segment Reporting Information [Line Items] | |
Number of stores | Store | 627 |
Summarized Financial Informatio
Summarized Financial Information Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Apr. 28, 2018 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | $ 1,231,348 | $ 1,231,771 | $ 2,797,312 | $ 2,876,204 | ||||||
Depreciation and amortization | 26,622 | 28,245 | 74,955 | 81,842 | ||||||
Operating Income (Loss) | 79,227 | (34,875) | 36,266 | (102,319) | ||||||
Capital Expenditures | 27,876 | 20,439 | 79,722 | 69,971 | ||||||
Total Assets | 1,784,149 | [1] | 1,787,845 | [1] | 1,784,149 | [1] | 1,787,845 | [1] | $ 1,749,568 | |
B&N Retail | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Assets | [1] | 1,756,713 | 1,761,571 | 1,756,713 | 1,761,571 | |||||
Nook | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total Assets | [1] | 27,436 | 26,274 | 27,436 | 26,274 | |||||
Operating Segments | B&N Retail | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 1,214,552 | 1,210,417 | 2,743,455 | 2,810,162 | ||||||
Depreciation and amortization | 24,347 | 25,295 | 67,513 | 72,491 | ||||||
Operating Income (Loss) | 83,517 | (33,546) | 42,407 | (95,367) | ||||||
Capital Expenditures | 26,528 | 18,833 | 75,507 | 64,777 | ||||||
Operating Segments | Nook | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 24,372 | 30,930 | 71,405 | 86,394 | ||||||
Depreciation and amortization | 2,275 | 2,950 | 7,442 | 9,351 | ||||||
Operating Income (Loss) | (4,290) | (1,329) | (6,141) | (6,952) | ||||||
Capital Expenditures | 1,348 | 1,606 | 4,215 | 5,194 | ||||||
Elimination | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | [2] | $ (7,576) | $ (9,576) | $ (17,548) | $ (20,352) | |||||
[1] | (b) Excludes intercompany balances. | |||||||||
[2] | (a) Represents sales from NOOK to B&N Retail on a sell-through basis. |
Reconciliation of Operating Inc
Reconciliation of Operating Income (Loss) from Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segments operating income (loss) | $ 79,227 | $ (34,875) | $ 36,266 | $ (102,319) |
Interest expense, net and amortization of deferred financing fees | 3,372 | 2,536 | 10,056 | 7,254 |
Consolidated income (loss) before taxes | $ 75,855 | $ (37,411) | $ 26,210 | $ (109,573) |
Amortizable Intangible Assets a
Amortizable Intangible Assets and Unamortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Apr. 28, 2018 | Jan. 27, 2018 | ||
Intangible Assets by Major Class [Line Items] | ||||||||
Gross Carrying Amount | $ 6,611 | $ 17,234 | ||||||
Accumulated Amortization | (6,579) | (16,771) | ||||||
Total | 32 | 463 | ||||||
Beginning Balance | [1] | $ 309,294 | ||||||
Impairment | [1] | (5,594) | ||||||
Ending Balance | [1] | $ 303,700 | $ 309,294 | 303,700 | ||||
Total amortizable and unamortizable, intangible assets | 303,732 | $ 303,732 | $ 309,649 | 309,757 | ||||
Unamortizable intangible assets | [1] | 303,700 | 309,294 | 303,700 | 303,700 | 309,294 | ||
Trade name | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Beginning Balance | [1] | 293,400 | ||||||
Ending Balance | [1] | 293,400 | 293,400 | 293,400 | ||||
Unamortizable intangible assets | [1] | 293,400 | 293,400 | 293,400 | 293,400 | 293,400 | ||
Publishing contracts | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Beginning Balance | [1] | 15,894 | ||||||
Impairment | [1] | (5,594) | ||||||
Ending Balance | [1] | 10,300 | 15,894 | 10,300 | ||||
Unamortizable intangible assets | [1] | $ 10,300 | $ 15,894 | $ 10,300 | 10,300 | 15,894 | ||
Technology | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Gross Carrying Amount | 10,710 | |||||||
Accumulated Amortization | (10,303) | |||||||
Total | 407 | |||||||
Technology | Minimum | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Useful Life | 5 years | |||||||
Technology | Maximum | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Useful Life | 10 years | |||||||
Other | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Gross Carrying Amount | 6,611 | 6,524 | ||||||
Accumulated Amortization | (6,579) | (6,468) | ||||||
Total | $ 32 | $ 56 | ||||||
Other | Minimum | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Useful Life | 3 years | 3 years | ||||||
Other | Maximum | ||||||||
Intangible Assets by Major Class [Line Items] | ||||||||
Useful Life | 10 years | 10 years | ||||||
[1] | See Note 3 to these Consolidated Financial Statements. |
Aggregate Amortization Expense
Aggregate Amortization Expense (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 26, 2019 | Jan. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Aggregate Amortization Expense | $ 388 | $ 514 |
Estimated Amortization Expense
Estimated Amortization Expense (Detail) $ in Thousands | Jan. 26, 2019USD ($) |
Estimated Amortization Expense [Line Items] | |
2,019 | $ 404 |
2,020 | $ 16 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 26, 2019 | Apr. 28, 2018 | Jan. 27, 2018 |
Goodwill | $ 71,593 | $ 71,593 | $ 73,769 |
Summary of Changes in Contract
Summary of Changes in Contract Liabilities Related to Gift Card Program (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Gift Cards [Line Items] | ||||
Gift card liabilities balance as of April 28, 2018 | $ 323,465 | |||
Gift card breakage | $ (28,258) | $ (27,496) | (36,304) | $ (37,224) |
Gift card redemptions | (189,527) | |||
Gift card issuances | 231,809 | |||
Gift card liabilities balance as of January 26, 2019 | 239,296 | $ 358,609 | 239,296 | $ 358,609 |
Calculated under Revenue Guidance in Effect before Topic 606 | ASU 2014-09 | ||||
Gift Cards [Line Items] | ||||
Gift card liabilities balance as of April 28, 2018 | 323,465 | |||
Gift card liabilities balance as of January 26, 2019 | 319,739 | 319,739 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | ||||
Gift Cards [Line Items] | ||||
Gift card liabilities balance as of April 28, 2018 | (90,147) | |||
Gift card liabilities balance as of January 26, 2019 | $ (80,443) | $ (80,443) |
Gift Cards - Additional Informa
Gift Cards - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Gift card breakage | $ 28,258 | $ 27,496 | $ 36,304 | $ 37,224 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Jan. 26, 2019 | Apr. 28, 2018 | Jan. 27, 2018 |
Other Long-Term Liabilities | |||
Deferred rent | $ 51,747 | $ 50,720 | $ 52,087 |
Insurance liabilities | 12,675 | 12,589 | 13,498 |
Asset retirement obligations | 15,055 | 11,629 | 13,207 |
Tax liabilities and reserves | 5,124 | 5,124 | 8,711 |
Other | 3,201 | 4,209 | 4,209 |
Total other long-term liabilities | $ 87,802 | $ 84,271 | $ 91,712 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 |
Income Taxes [Line Items] | |||||
Income (loss) before taxes | $ 75,855,000 | $ (37,411,000) | $ 26,210,000 | $ (109,573,000) | |
Income taxes provision (benefit) | $ 8,925,000 | $ 26,125,000 | $ 3,712,000 | $ (5,165,000) | |
Effective income tax rate | 11.80% | (69.80%) | 14.20% | 4.70% | |
Amount of unrecognized tax benefits reasonably possible | $ 477,000 | $ 477,000 | |||
Benefit on the remeasurement of deferred tax assets and liabilities | $ 27,128,000 | ||||
Corporate tax rate | 35.00% | 21.00% | |||
Untaxed foreign earnings | 0 | $ 0 | |||
Additional income tax expense (benefit) from re-measurement of deferred tax assets and liabilities. | 170,000 | ||||
ASU 2016-09 | |||||
Income Taxes [Line Items] | |||||
Excess tax benefits on share based payments | 8,000 | $ 11,000 | 722,000 | $ 915,000 | |
ASU 2016-09 | Retained Earnings | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets, valuation allowance | $ 3,894,000 | $ 3,894,000 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Jul. 13, 2018 | Aug. 03, 2015 | Jul. 28, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Sep. 30, 2016 |
Line of Credit Facility [Line Items] | ||||||
Allowable annual dividend payment under credit facility | $ 70,000,000 | |||||
Line of credit facility, amount outstanding | 129,251,000 | $ 59,805,000 | ||||
Letters of credit, outstanding amount | 33,213,000 | $ 35,233,000 | ||||
Amended Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Unamortized deferred financing fees | $ 4,425,000 | |||||
Amortization period for deferred financing fees | 5 years | |||||
Amended Credit Agreement | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Option to increase in commitments under credit agreement | $ 250,000,000 | |||||
Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Write off of deferred financing fees | $ 275,000 | |||||
Unamortized deferred financing fees | $ 3,780,000 | |||||
Amortization period for deferred financing fees | 5 years | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maturity term, in years | 5 years | |||||
Credit facility, borrowing capacity | $ 750,000,000 | $ 700,000,000 | $ 50,000,000 | |||
Credit facility , maturity date | Jul. 13, 2023 | |||||
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, percentage points added to reference rate | 1.75% | |||||
Revolving Credit Facility | Maximum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, percentage points added to reference rate | 0.75% | |||||
Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, percentage points added to reference rate | 1.25% | |||||
Revolving Credit Facility | Minimum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, percentage points added to reference rate | 0.25% | |||||
FILO Credit Facility, Revolving Credit Facility, the Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, interest rate description | Interest under the Revolving Credit Facility accrues, at the election of the Company, at a LIBOR or alternate base rate, plus, in each case, an applicable interest rate margin between LIBOR plus 1.750% per annum and LIBOR plus 1.250% per annum or between the alternate base rate plus 0.750% per annum and the alternate base rate plus 0.250% per annum based upon the average daily availability under the Revolving Credit Facility for the immediately preceding fiscal quarter. | |||||
Debt instrument, interest rate | 1.00% |
Stock-Based Compensation Expens
Stock-Based Compensation Expense in Selling and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,388 | $ 1,656 | $ 3,091 | $ 4,788 |
Selling and Administrative Expenses | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 284 | 250 | 701 | 697 |
Selling and Administrative Expenses | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 679 | 1,032 | 1,767 | 3,020 |
Selling and Administrative Expenses | Performance Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 425 | $ 374 | $ 623 | $ 1,071 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Company contributions, employee benefit expenses | $ 2,283 | $ 2,660 | $ 7,433 | $ 8,498 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Oct. 03, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Apr. 28, 2018 | Mar. 15, 2017 |
Class of Stock [Line Items] | |||||||
Treasury stock repurchased, shares | 0 | 0 | 0 | 0 | |||
Treasury stock, shares | 39,738,000 | 39,585,000 | 39,738,000 | 39,585,000 | 39,585,000 | ||
Treasury stock, at cost | $ 1,122,571,000 | $ 1,121,724,000 | $ 1,122,571,000 | $ 1,121,724,000 | $ 1,121,724,000 | ||
Stockholder Rights Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share of Series K Preferred Stock, par value | $ 0.001 | ||||||
Share price | $ 24 | ||||||
Ownership trigger threshold | 20.00% | ||||||
Dividends payable, date of record | Oct. 13, 2018 | ||||||
Maximum | |||||||
Class of Stock [Line Items] | |||||||
Number of shares authorized to be repurchase | $ 50,000,000 | ||||||
New Stock Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program, remaining authorized repurchase amount | $ 50,000,000 | $ 50,000,000 | |||||
Stock Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock, shares | 39,737,720,000 | 39,737,720,000 | |||||
Treasury stock, at cost | $ 1,087,913,000 | $ 1,087,913,000 |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Detail) - LegalMatter | Dec. 21, 2018 | Nov. 27, 2013 |
Loss Contingencies [Line Items] | ||
Litigation Settlement Agreement, Attorney Fee Payment Percentage | 50.00% | |
Carag | ||
Loss Contingencies [Line Items] | ||
Number of putative shareholder derivative complaints filed | 1 |