Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	May 02, 2020	Jun. 26, 2020	Oct. 26, 2019
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	May 02, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Registrant Name	Barnes & Noble Education, Inc.
Entity Central Index Key	0001634117
Current Fiscal Year End Date	--05-02
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		48,485,711
Entity Public Float			$ 197
Entity Interactive Data Current	Yes

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	May 02, 2020	Apr. 27, 2019	Apr. 28, 2018
Sales:
Product sales and other	$ 1,671,200	$ 1,838,760	$ 1,984,472
Rental income	179,863	195,883	219,145
Revenues	1,851,063	2,034,643	2,203,617
bned_Cost of Product and Other Cost of Sales	1,303,702	1,395,339	1,522,687
Rental cost of sales	104,812	111,578	123,697
Cost of Goods and Services Sold	1,408,514	1,506,917	1,646,384
Gross profit	442,549	527,726	557,233
Selling and administrative expenses	404,472	423,880	433,746
Depreciation and amortization expense	61,860	65,865	65,586
Impairment loss (non-cash)	433	57,748	313,130
Restructuring and other charges	18,567	7,233	5,429
Transaction costs	0	654	2,045
Operating income	(42,783)	(27,654)	(262,703)
Interest expense, net	7,445	9,780	10,306
Income before income taxes	(50,228)	(37,434)	(273,009)
Income tax expense	(11,978)	(13,060)	(20,443)
Net income (loss)	$ (38,250)	$ (24,374)	$ (252,566)
Earnings per share of common stock
Earnings Per Share, Basic	$ (0.80)	$ (0.52)	$ (5.40)
Earnings Per Share, Diluted	$ (0.80)	$ (0.52)	$ (5.40)
Weighted average common shares outstanding
Weighted Average Number of Shares Outstanding, Basic	48,013	47,306	46,763
Diluted	48,013	47,306	46,763

Consolidated Balance Sheets - USD ($)	May 02, 2020	Apr. 27, 2019
Current assets:
Cash and cash equivalents	$ 8,242,000	$ 14,013,000
Receivables, net	90,851,000	98,246,000
Merchandise inventories, net	428,939,000	420,322,000
Textbook rental inventories	40,710,000	47,001,000
Prepaid expenses and other current assets	16,177,000	11,778,000
Total current assets	584,919,000	591,360,000
Property and equipment, net	97,739,000	109,777,000
Operating Lease, Right-of-Use Asset	250,837,000	0
Intangible assets, net	175,125,000	194,978,000
Goodwill	4,700,000	4,700,000
Deferred Income Tax Assets, Net	7,805,000	2,425,000
Other noncurrent assets	35,307,000	42,940,000
Total assets	1,156,432,000	946,180,000
Current liabilities:
Accounts payable	143,678,000	186,818,000
Accrued Liabilities, Current	95,420,000	121,720,000
Operating Lease, Liability, Current	92,571,000	0
Short-term borrowings	75,000,000	100,000,000
Total current liabilities	406,669,000	408,538,000
Operating Lease, Liability, Noncurrent	186,142,000	0
Other long-term liabilities	46,170,000	53,514,000
Long-term borrowings	99,700,000	33,500,000
Total liabilities	738,681,000	495,552,000
Commitments and contingencies	0	0
Preferred stock, $0.01 par value	0	0
Common stock, $0.01 par value	521,000	510,000
Additional paid-in capital	732,958,000	726,331,000
Retained Earnings (Accumulated Deficit)	(282,827,000)	(244,577,000)
Treasury stock, at cost	(32,901,000)	(31,636,000)
Total stocholders' equity	417,751,000	450,628,000
Total liabilities and Parent Company equity	$ 1,156,432,000	$ 946,180,000

Consolidated Balance Sheet Parenthetical (Parentheticals) - $ / shares	May 02, 2020	Apr. 27, 2019
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	52,140,000	51,030,000
Common Stock, Shares, Outstanding	48,297,554	47,563,000

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
Consolidated Statements of Cash Flows $ in Thousands	May 02, 2020 USD ($)	Apr. 27, 2019 USD ($)	Apr. 28, 2018 USD ($)
Net Cash Provided by (Used in) Operating Activities	$ (16,103)	$ 120,817	$ 60,042
Interest Paid, Excluding Capitalized Interest, Operating Activities	6,796	8,589	8,035
Cash flows from operating activities:
Net income (loss)	(38,250)	(24,374)	(252,566)
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization expense	61,860	65,865	65,586
Content amortization expenses	4,082	1,096	0
Amortization of deferred financing costs	1,095	1,550	1,502
Impairment loss (non-cash)	433	57,748	313,130
Deferred taxes	(5,380)	(4,531)	(14,765)
Stock-based compensation expense	6,638	9,017	8,459
Increase (Decrease) in Operating Liabilities	18,399	0	0
Changes in other long-term liabilities	(6,480)	(6,314)	(36,823)
Changes in other operating assets and liabilities, net	(58,500)	20,760	(24,481)
Increase (Decrease) in Other Noncurrent Assets	(6,600)	(1,774)	(1,036)
Net Cash Provided by (Used in) Investing Activities	(29,592)	(54,646)	(100,032)
Cash flows from investing activities:
Purchases of property and equipment	(36,192)	(46,420)	(42,809)
Acquisition of business, net of cash acquired	0	(10,000)	(58,259)
Cash flows from financing activities:
Proceeds from borrowings on Credit Facility	600,900	521,200	674,500
Repayments of borrowings on Credit Facility	(559,700)	(584,100)	(637,700)
Payments of deferred financing costs	0	(3,395)	0
Payments for Repurchase of Common Stock	(1,265)	(1,977)	(1,638)
Net Cash Provided by (Used in) Financing Activities	39,935	(68,272)	35,162
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(5,760)	(2,101)	(4,828)
Cash and cash equivalents at beginning of period	9,008	14,768	16,869
Changes in other operating assets and liabilities, net:
Receivables, net	7,320	1,814	(13,670)
Merchandise inventories	(8,617)	23,237	(9,495)
Textbook rental inventories	6,291	778	5,047
Prepaid expenses and other current assets	(4,399)	69	(2,648)
Accounts payable and accrued liabilities	(59,095)	(5,138)	(3,715)
Changes in other operating assets and liabilities, net	(58,500)	20,760	(24,481)
Supplemental Cash Flow Information [Abstract]
Income taxes paid (net of refunds)	$ (4,141)	$ 10,277	$ 25,549

Consolidated Statement of Equity Statement - USD ($) $ in Thousands	Total	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Common Stock [Member]
Treasury Stock, Shares	3,115,000
Common Stock, Shares, Issued	50,032,000
Common Stock, Value, Issued	$ 501
Additional Paid in Capital, Common Stock	717,323
Retained Earnings (Accumulated Deficit)	(220,203)
Treasury Stock, Value	29,658
Stockholders' Equity Attributable to Parent	467,963
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	9,017	$ 9,017
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures				998,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	$ 0	(9)		$ 9
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	351,043		352,000
Treasury Stock, Value, Acquired, Cost Method			$ 1,978
CostOfRepurchasedSharesForTaxWittholdingForShareBasedCompensation	$ 1,978
Net Income (Loss) Attributable to Parent	$ (24,374)
Treasury Stock, Shares	3,467,000
Common Stock, Shares, Issued	51,030,000
Common Stock, Value, Issued	$ 510
Additional Paid in Capital, Common Stock	726,331
Retained Earnings (Accumulated Deficit)	(244,577)
Treasury Stock, Value	31,636
Stockholders' Equity Attributable to Parent	450,628
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	6,638	6,638
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures				1,110,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	$ 0	$ (11)		$ 11
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	374,733		375,000
Treasury Stock, Value, Acquired, Cost Method			$ 1,265
CostOfRepurchasedSharesForTaxWittholdingForShareBasedCompensation	$ 1,265
Net Income (Loss) Attributable to Parent	$ (38,250)
Treasury Stock, Shares	3,842,000
Common Stock, Shares, Issued	52,140,000
Common Stock, Value, Issued	$ 521
Additional Paid in Capital, Common Stock	732,958
Retained Earnings (Accumulated Deficit)	(282,827)
Treasury Stock, Value	32,901
Stockholders' Equity Attributable to Parent	$ 417,751

Organization (Notes)

12 Months Ended

May 02, 2020

Organization

Note 1. Organization

Description of Business

Barnes & Noble Education, Inc. (“BNED”) is one of the largest contract operators of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. We are also one of the largest textbook wholesalers, inventory management hardware and software providers, and a leading provider of digital education solutions. We operate 1,419 physical, virtual, and custom bookstores and serve more than 6 million students, delivering essential educational content and tools within a dynamic omni channel retail environment. Additionally, we offer direct-to-student products and services to help students study more effectively and improve academic performance.

The strengths of our business include our ability to compete by developing new products and solutions to meet market needs, our large operating footprint with direct access to students and faculty, our well-established, deep relationships with academic partners and stable, long-term contracts and our well-recognized brands. We expect to continue to introduce scalable and advanced digital solutions focused largely on the student, expand our general merchandise e-commerce capabilities, increase market share with new accounts, and expand our strategic opportunities through acquisitions and partnerships. We expect general merchandise sales to continue to increase over the long term, as our product assortments continue to emphasize and reflect the changing consumer trends, and we evolve our presentation concepts and merchandising of products in stores and online, as we improve our e-commerce capabilities through investments we are making in new systems, processes and people.

The BNC and MBS brands are virtually synonymous with innovation in bookselling and campus retail, and, we believe, are widely recognized and respected brands in the United States. Our large college footprint, reputation, and credibility in the marketplace not only support our marketing efforts to universities, students, and faculty, but are also important for leading publishers who rely on us as one of their primary distribution channels, and for being a trusted source for students in our direct-to-student digital solutions business.

We have three reportable segments: Retail, Wholesale and DSS. For additional information related to our strategies, operations and segments, see Part I - Item 1. Business and Part II - Item 8. Financial Statements and Supplementary Data - Note 7. Segment Reporting.

COVID-19 Business Impact and Other Recent Matters

Our business experienced an unprecedented and significant impact as a result of COVID-19 related campus store closures. Beginning in March 2020, colleges and universities nationwide began to close their campuses in light of safety concerns and as a result of local and state issued stay-at-home orders. By mid-March, during our fiscal fourth quarter, we closed the majority of our physical campus stores to protect the health and safety of our customers and employees.

While our campus stores were closed, we continued to serve institutions and students through our campus websites, providing free shipping on all orders and an expanded digital content offering to provide immediate access to course materials to students at our campuses that closed due to COVID-19. Our fiscal fourth quarter is historically a lower revenue quarter for our operations as it does not include a back-to-school rush period, however, we experienced a loss in revenue in our Retail segment associated with the cancellation of events that traditionally drive sales in the fourth quarter, including athletics events such as March Madness, as well as graduation events.

To mitigate the impact of the business disruption, we have taken steps to significantly reduce costs, including furloughing the majority of our Retail workforce (effective April 2020). We developed and implemented plans to safely reopen our campus stores based on national, state and local guidelines, as well as the campus policies set by the school administration. Colleges and universities in the United States continue to adjust their plans for the upcoming fall term, with some implementing shortened semesters or choosing to remain fully virtual in order to best protect students and faculty.

We have implemented a significant cost reduction program designed to streamline our operations, maximize productivity and drive profitability. Certain elements of this plan were implemented in late Fiscal 2020, while other actions are planned for Fiscal 2021. We anticipate meaningful annualized cost savings from this program, the majority of which is expected to be realized beginning in Fiscal 2021. As a result, we currently expect to see the most significant impacts of COVID-19 on our business in the first half of Fiscal 2021. However, we cannot accurately predict the duration or extent of the impact of COVID-19 on enrollments, university budgets, athletics and other areas that directly affect our business operations.

In Fiscal 2020, we retained Morgan Stanley & Co. to serve as a financial advisor in connection with our review of strategic opportunities. The review is designed to accelerate the execution of customer-focused strategic initiatives and enhance value for our shareholders, including, but not limited to, continued execution of our current business plan, new partnerships, joint ventures and other potential opportunities. There can be no assurance that the review will result in a transaction or announcement of any kind. We have not set a timetable for the conclusion of the review.

Summary of Significant Accounting Policies (Notes)

12 Months Ended

May 02, 2020

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

Our consolidated financial statements reflect our consolidated financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). In the opinion of the Company’s management, the accompanying consolidated financial statements of the Company contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly its consolidated financial position and the results of its operations and cash flows for the periods reported.

Our fiscal year is comprised of 52 or 53 weeks, ending on the Saturday closest to the last day of April. The fiscal year periods for each of the last three fiscal years consisted of the 53 weeks ended May 2, 2020 (“Fiscal 2020”), 52 weeks ended April 27, 2019 (“Fiscal 2019”), and 52 weeks ended April 28, 2018 (“Fiscal 2018”).

For certain of our retail operations, sales are generally highest in the second and third fiscal quarters, when students purchase and rent textbooks and other course materials for the typical academic year, and lowest in the first and fourth fiscal quarters. Sales attributable to our wholesale business are generally highest in our first and third quarter, as it sells textbooks and other course materials for retail distribution. Our DSS sales and operating profit are realized relatively consistently throughout the year.

Our quarterly results also may fluctuate depending on the timing of the start of the various schools' semesters, as well as shifts in fiscal calendar dates. These shifts in timing may affect the comparability of our results across periods.

As discussed in Note 1. Organization, our business experienced an unprecedented and significant impact as a result of COVID-19 related campus store closures (the majority of which began in mid-March). While our campus stores were closed, we continued to serve institutions and students through our campus websites, providing free shipping on all orders and an expanded digital content offering to provide immediate access to course materials to students at our campuses that closed due to COVID-19. The impact of the store closures affects the comparability of our results of operations and cash flows.

Consolidation

The results of operations reflected in our consolidated financial statements are presented on a consolidated basis. All material intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements include acquisitions effective their respective acquisition date.


•	The consolidated financial statements for the 52 weeks ended April 27, 2019 include the financial results of PaperRater from the acquisition date, August 21, 2018, to April 27, 2019.


•	The consolidated financial statements for the 52 weeks ended April 28, 2018 include the financial results of Student Brands from the acquisition date, August 3, 2017, to April 28, 2018.

Use of Estimates

In preparing financial statements in conformity with GAAP, we are required to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

We consider all short-term, highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

Restricted Cash

Restricted cash of $766 and $755 is included in other noncurrent assets in the consolidated balance sheet as of May 2, 2020 and April 27, 2019, respectively. These funds are amounts held in trust for future distributions related to employee benefit plans.

Accounts Receivable

Receivables represent customer, private and public institutional and government billings (colleges, universities and other financial aid providers), credit/debit card receivables, advances for book buybacks, advertising and other receivables due within one year. Components of accounts receivables are as follows:



	As of
	5/2/2020		4/27/2019
Trade accounts	$	75,702	$	74,311
Advances for book buybacks	766		6,339
Credit/debit card receivables	2,177		4,173
Other receivables	12,206		13,423
Total receivables, net	$	90,851	$	98,246

Accounts receivable are presented on our consolidated balance sheets net of allowances. An allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable and assessments of collectability based on historical trends, the financial condition of our customers and an evaluation of economic conditions. We write-off uncollectible trade receivables once collection efforts have been exhausted and record bad debt expenses related to textbook rentals that are not returned and we are unable to successfully charge the customer. Allowance for doubtful accounts were $1,986, and $2,135 as of May 2, 2020 and April 27, 2019, respectively.

Merchandise Inventories

Merchandise inventories, which consist of finished goods, are stated at the lower of cost or market. Market value of our inventory, which is all purchased finished goods, is determined based on its estimated net realizable value, which is generally the selling price less normally predictable costs of disposal and transportation. Reserves for non-returnable inventory are based on our history of liquidating non-returnable inventory.

Cost is determined primarily by the retail inventory method for our Retail segment and last-in first out, or “LIFO”, method for our Wholesale segment. Our textbook inventories, for Retail and Wholesale, and trade book inventories are valued using the LIFO method and the related reserve was not material to the recorded amount of our inventories. There were no LIFO adjustments in Fiscal 2020, Fiscal 2019 and Fiscal 2018.

For our physical bookstores, we also estimate and accrue 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.

The Retail Segment fulfillment order is directed first to our wholesale business before other sources of inventory are utilized. The products that we sell originate from a wide variety of domestic and international vendors. After internal sourcing, the bookstore purchases textbooks from outside suppliers and publishers. The Retail Segments four largest suppliers, excluding the supply sourced from our Wholesale Segment, accounted for approximately 32.2% of our merchandise purchased during the 53 weeks ended May 2, 2020. For our Wholesale Segment, the four largest suppliers, excluding textbooks purchased from students at our Retail Segment's bookstores, accounted for approximately 33.9% of merchandise purchases during the 53 weeks ended May 2, 2020.

Textbook Rental Inventories

Physical textbooks out on rent are categorized as textbook rental inventories. At the time a rental transaction is consummated, the book is removed from merchandise inventories and moved to textbook rental inventories at cost. The cost of the book is amortized down to its estimated residual value over the rental period. The related amortization expense is included in cost of goods sold. At the end of the rental period, upon return, the book is removed from textbook rental inventories and recorded in merchandise inventories at its amortized cost.

Implementation Costs Incurred in a Cloud Computing Arrangement

We adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") effective April 28, 2019 (first day of Fiscal 2020) prospectively for all implementation costs incurred in a cloud computing arrangement (or hosting arrangement) that is a service contract. The guidance requires implementation costs incurred in a cloud computing arrangement (or hosting arrangement) that is a service contract to be amortized to hosting expense over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. Prior to adoption, we capitalized certain implementation costs, primarily related to digital and consumer data platforms, to property and equipment on the consolidated balance sheets and depreciated these implementation costs to depreciation and amortization expense in the consolidated statement of operations over the term of the service contract once the asset was ready for its intended use. Subsequent to adoption, implementation costs which were previously capitalized and depreciated as described above, are included in prepaid expenses and other assets in the consolidated balance sheets and amortized to selling and administrative expense in the consolidated statement of operations. Implementation costs incurred in cloud computing arrangements reflected in prepaid and other assets in the consolidated balance sheets were $4,262, and $0 as of May 2, 2020 and April 27, 2019, respectively. We had $96, $0 and $0 of amortization of implementation costs in selling and administrative expense in the consolidated statement of operations, respectively.

Property and Equipment

Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over estimated useful lives. Maintenance and repairs are expensed as incurred, however major maintenance and remodeling costs are capitalized if they extend the useful life of the asset. We had $42,550, $44,550, and $46,531 of depreciation expense for the 53 weeks ended May 2, 2020, 52 weeks ended April 27, 2019, and 52 weeks ended April 28, 2018, respectively.

Content development costs are primarily related to bartleby.com textbook solutions which was launched in Fiscal 2019. Content amortization is computed using the straight-line method over estimated useful lives. Amortization of content development costs is recorded to cost of goods sold. We had $4,082, $1,096, and $0 of content amortization expense for the 53 weeks ended May 2, 2020, 52 weeks ended April 27, 2019, and 52 weeks ended April 28, 2018, respectively.

Components of property and equipment are as follows:



		As of
	Useful Life	May 2, 2020		April 27, 2019
Property and equipment:
Leasehold improvements	(a)	$	141,602	$	148,015
Machinery, equipment and display fixtures	3 - 5	246,447		240,171
Computer hardware and capitalized software costs	(b)	145,764		136,267
Office furniture and other	2 - 7	62,209		59,327
Content development costs	3 - 5	16,729		11,593
Construction in progress		3,878		5,499
Total property and equipment		616,629		600,872
Less accumulated depreciation and amortization		518,890		491,095
Total property and equipment, net		$	97,739	$	109,777


(a)	Leasehold improvements are capitalized and depreciated over the shorter of the lease term or the useful life of the improvements, ranging from one to 15 years.


(b)	System costs are capitalized and amortized over their estimated useful lives, from the date the systems become operational. Purchased software is generally amortized over a period of between 2 - 5 years.

Leases

Effective April 28, 2019, we adopted Accounting Standards Codification ("ASC") Topic 842, Leases, and recognized lease assets and lease liabilities on the consolidated balance sheet for all operating lease arrangements based on the present value of future lease payments. We do not recognize lease assets or lease liabilities for short-term leases (i.e., those with a term of twelve months or less). We recognize lease expense on a straight-line basis over the lease term for contracts with fixed lease payments, including those with fixed annual minimums, or over a rolling twelve-month period for leases where the annual guarantee resets at the start of each contract year, in order to best reflect the pattern of usage of the underlying leased asset.

As a result of adopting ASC Topic 842, we recorded an initial operating lease right-of-use asset of $277,006 (inclusive of prepaid assets and accrued liabilities related to existing leases) and an operating lease liability of $294,727 as of April 28, 2019 for all leases that were not completed and with lease terms in excess of twelve months at that date. For additional information, see Note 5. Leases.

Other Long-Lived Assets

Our other long-lived assets include property and equipment and amortizable intangibles. We had $175,125 and $194,978 of amortizable intangible assets, net of amortization, as of May 2, 2020 and April 27, 2019, respectively. These amortizable intangible assets relate primarily to our customer and bookstore relationships with our colleges and university clients, and technology acquired. For additional information related to amortizable intangibles, see Part II - Item 8. Financial Statements and Supplementary Data - Note 11. Supplementary Information - Intangible Assets.

We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and consider market participants in accordance with Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets.

In the first quarter of Fiscal 2020, we recorded an impairment loss (non-cash) of $433 in the Retail segment related to net capitalized development costs for a project which are not recoverable.

During the fourth quarter of Fiscal 2020, in conjunction with COVID-19 related campus store closures, we evaluated certain of our long-lived assets associated with our Retail and Wholesale segments for impairment. We evaluated the long-lived assets of these reporting units for impairment at the lowest asset group level for which individual cash flows can be identified. When evaluating long-lived assets for potential impairment, we first compared the carrying amount of the asset group to the estimated future undiscounted cash flows. The impairment loss calculation compares the carrying amount of the assets to the fair value based on estimated discounted future cash flows. If required, an impairment loss is recorded for that portion of the asset’s carrying value in excess of fair value. Based on the results of the tests, for the Wholesale segment, an impairment loss calculation was not required as the estimated future undiscounted cash flows of the identified asset groups exceeded the carrying amount of the respective asset group. Based on the results of the tests, for the Retail segment, we recognized an impairment loss of $587 related to store-level assets in restructuring and other charges. These long-lived assets were not recoverable and had a de minimis fair value, as determined using an income approach (Level 3 input), resulting in a non-cash impairment charge for the full carrying value of those long-lived assets.

During the fourth quarter of Fiscal 2019, in conjunction with the change to reporting segments and the interim goodwill impairment test noted below, as well as operational changes in certain long-lived asset groups, we evaluated certain of our long-lived assets for impairment and recognized an impairment loss of $8,466, comprised of $8,138 of intangible assets, primarily acquired technology, and $328 of property and equipment related to our LoudCloud and Promoversity operations. These long-lived assets were not recoverable and had a de minimis fair value, as determined using the relief-from-royalty and income approaches (Level 3 input), resulting in a non-cash impairment charge for the full carrying value of those long-lived assets. See Part II - Item 8. Financial Statements and Supplementary Data - Note 11. Supplementary Information - Intangible Assets.

Goodwill

The costs in excess of net assets of businesses acquired are carried as goodwill in the accompanying consolidated balance sheets. In accordance with ASC 350-10, Intangibles - Goodwill and Other, we complete our annual goodwill impairment test as of the first day of the third quarter of each fiscal year, or whenever events or changes in circumstances indicate that the carrying amount of the reporting unit exceeds its fair value.

During the third quarter of Fiscal 2020, we completed our annual goodwill impairment test and concluded that the fair value of the DSS reporting unit was determined to exceed the carrying value of the reporting unit; therefore, no goodwill impairment was recognized. In performing the valuation, we used cash flows that reflected management’s forecasts and discount rates that included risk adjustments consistent with the current market conditions.

During the third quarter of Fiscal 2019, we completed our annual goodwill impairment test and concluded that the fair value of the MBS and DSS reporting units, as they existed at that time, each exceeded their respective carrying values and no goodwill impairment was recognized. In the fourth quarter of Fiscal 2019, due to the change in our reporting units identified as a result of the change in our reportable segments, we recognized a total goodwill impairment (non-cash impairment loss) of $49,282 associated with the MBS reporting unit (as it existed at that date) and allocated $20,538 of goodwill to the Retail Segment and $28,744 of goodwill to the Wholesale Segment.

In Fiscal 2018, the carrying value of the BNC reporting unit (as it existed at that date) exceeded its fair value and we recognized a goodwill impairment (non-cash impairment loss) of $313,130.

As of both May 2, 2020 and April 27, 2019, we had $0, $0 and $4,700 of goodwill on our consolidated balance sheets related to our Retail, Wholesale, and DSS reporting units, respectively.

Application of the goodwill impairment test requires judgment, including: the identification of reporting units; assignment of assets and liabilities to reporting units; assignment of goodwill to reporting units; and the determination of the fair value of each reporting unit. In performing the valuation, we used cash flows that reflected management’s forecasts and discount rates that included risk adjustments consistent with the current market conditions.

We estimated the fair value of our reporting units using a weighting of fair values derived from the income approach. Under the income approach, we calculate the fair value of the reporting unit based on the present value of estimated future cash flows. Inherent in our preparation of cash flow projections are assumptions and estimates derived from a review of our operating results, business plans, expected growth rates, cost of capital and tax rates. We also make certain forecasts about future economic conditions, interest rates, market data, and other observable trends, such as comparable store sales trends, recent changes in publisher relationships, and development of innovative digital products and services in the rapidly changing education landscape. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the business’s ability to execute on the projected cash flows.

Refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates for a discussion of key assumptions used in our testing.

Revenue Recognition and Deferred Revenue

Product sales and rentals

The majority of our revenue relates to the sales of products through our bookstore locations, including virtual bookstores, and our bookstore affiliated ecommerce websites, and contains a single performance obligation. Revenue from sales of our products is recognized at the point in time when control of the products is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for the products. For additional information, see Part II - Item 8. Financial Statements and Supplementary Data - Note 4. Revenue.

Retail product revenue is recognized when the customer takes physical possession of our products, which occurs either at the point of sale for products purchased at physical locations or upon receipt of our products by our customers for products ordered through our websites and virtual bookstores. Wholesale product revenue is recognized upon shipment of physical textbooks at which point title passes and risk of loss is transferred to the customer. Additional revenue is recognized for shipping charges billed to customers and shipping costs are accounted for as fulfillment costs within cost of goods sold.

Revenue from the rental of physical textbooks, which contains a single performance obligation, is deferred and recognized over the rental period based on the passage of time commencing at the point of sale, when control of the product transfers to the customer. Rental periods are typically for a single semester and are always less than one year in duration. We offer a buyout option to allow the purchase of a rented physical textbook at the end of the rental period if the customer desires to do so. We record the buyout purchase when the customer exercises and pays the buyout option price which is determined at the time of the buyout. In these instances, we accelerate any remaining deferred rental revenue at the point of sale.

Revenue from the rental of digital textbooks, which contains a single performance obligation, is recognized at the point of sale. A software feature is embedded within the content of our digital textbooks, such that upon expiration of the rental term the customer is no longer able to access the content. While the digital rental allows the customer to access digital content for a fixed period of time, once the digital content is delivered to the customer, our performance obligation is complete.

We estimate returns based on an analysis of historical experience. 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.

For sales and rentals involving third-party products, we evaluate whether we are acting as a principal or an agent. Our determination is based on our evaluation of whether we control the specified goods or services prior to transferring them to the customer. There are significant judgments involved in determining whether we control the specified goods or services prior to transferring them to the customer including whether we have the ability to direct the use of the good or service and obtain substantially all of the remaining benefits from the good or service. For those transactions where we are the principal, we record revenue on a gross basis, and for those transactions where we are an agent to a third-party, we record revenue on a net basis.

We do not have gift card or customer loyalty programs. We do not treat any promotional offers as expenses. Sales tax collected from our customers is excluded from reported revenues. Our payment terms are generally 30 days and do not extend beyond one year.

Service and other revenue

Service and other revenue primarily relates to direct-to-student subscription-based writing service revenues and partnership marketing services which includes promotional activities and advertisements within our physical bookstores and web properties performed on behalf of third-party customers.

Subscription-based revenue, which contains a single performance obligation, is deferred and recognized based on the passage of time over the subscription period commencing at the point of sale, when control of the service transfers to the customer. The majority of subscriptions sold are one month in duration.

Partnership marketing agreements often include multiple performance obligations which are individually negotiated with our customers. For these arrangements that contain distinct performance obligations, we allocate the transaction price based on the relative standalone selling price method by comparing the standalone selling price (“SSP”) of each distinct performance obligation to the total value of the contract. The revenue is recognized as each performance obligation is satisfied, typically at a point in time for partnership marketing service and overtime for advertising efforts as measured based upon the passage of time for contracts that are based on a stated period of time or the number of impressions delivered for contracts with a fixed number of impressions.

Cost of Sales

Our cost of sales primarily include costs such as merchandise costs, textbook rental amortization, content development cost amortization, warehouse costs related to inventory management and order fulfillment, insurance, certain payroll costs, and management service agreement costs, including rent expense, related to our college and university contracts and other facility related expenses.

Selling and Administrative Expenses

Our selling and administrative expenses consist primarily of store payroll and store operating expenses. Selling and administrative expenses also include stock-based compensation and general office expenses, such as merchandising, procurement, field support, finance and accounting, and operating costs related to our DSS segment subscription-based services business. Shared-service costs such as human resources, legal, treasury, information technology, and various other corporate level expenses and other governance functions, are not allocated to any specific reporting segment and are recorded in Corporate Services.

Stock-Based Compensation

We have granted awards in accordance with the Barnes & Noble Education Inc. Equity Incentive Plan (the “Equity Incentive Plan”). Types of equity awards that can be granted under the Equity Incentive Plan include options, restricted stock (“RS”), restricted stock units (“RSU”), performance shares (“PS”) and performance share units (“PSU”). We have not granted options under the Equity Incentive Plan. See Part II - Item 8. Financial Statements and Supplementary Data - Note 14. Stock-Based Compensation for a further discussion of our stock-based incentive plan.

We recognize compensation expense for awards ratably over the requisite service period of the award, which is generally three years. We recognize compensation expense based on the number of awards expected to vest using an estimated average forfeiture rate. We calculate the fair value of stock-based awards based on the closing price on the date the award was granted for awards with only performance or service conditions. For those awards with market conditions, we have determined the grant date fair value using the Monte Carlo simulation model.

Advertising Costs

The costs of advertising are expensed as incurred during the year pursuant to ASC No. 720-35, Advertising Costs. Advertising costs charged to selling and administrative expenses were $10,349, $10,636, and $10,691 during Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively.

Income Taxes

The provision for income taxes includes federal, state and local income taxes currently payable and those deferred because of temporary differences between the financial statement and tax basis of assets and liabilities. The deferred tax assets and liabilities are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. We regularly review deferred tax assets for recoverability and establish a valuation allowance, if determined to be necessary. For additional information, see Part II - Item 8. Financial Statements and Supplementary Data - Note 15. Income Taxes.

As of May 2, 2020, other long-term liabilities includes $25,748 related to the long-term tax payable associated with the LIFO reserve. The LIFO reserve is impacted by changes in the consumer price index (“CPI”) and is dependent on the inventory levels at the end of our tax year (on or about January 31st) which is in the middle of our second largest selling cycle. At the end of the most recent tax year, inventory levels declined as compared to the prior year resulting in approximately $7,597 of the LIFO reserve becoming currently payable. Given recent trends relating to the pricing and rental of textbooks, management believes that an additional portion of the remaining long-term tax payable associated with the LIFO reserve could be payable within the next twelve months. We are unable to predict future trends for CPI and inventory levels, therefore it is difficult to project with reasonable certainty how much of this liability will become payable within the next twelve months.

Earnings Per Common Share

Basic earnings per share represent net earnings to common stockholders divided by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of our stock based compensation. See Part II - Item 8. Financial Statements and Supplementary Data - Note 8. Equity and Earnings Per Share for further information regarding the calculation of basic and diluted earnings per common share.

Recent Accounting Pronouncements (Notes)

12 Months Ended

May 02, 2020

Recent Accounting Pronouncements

Note 3. Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The guidance seeks to simplify the accounting for income taxes by removing the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the guidance seeks to further simplify the accounting for income taxes by: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements (although the entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority), 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and 5) making minor improvements for income tax accounting related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. This guidance will be effective for fiscal years and interim periods beginning after December 15, 2020. Different components of the guidance require retrospective, modified retrospective or prospective adoption, and early adoption is permitted. We are currently assessing whether we will early adopt this guidance, and the impact on our consolidated financial statements is not currently estimable.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU replaces the existing incurred loss impairment model for trade receivables with an expected loss model which requires the use of forward-looking information to calculate expected credit loss estimates. These changes may result in earlier recognition of credit losses. Early adoption is permitted and the guidance requires a modified retrospective method of adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This guidance is effective for annual periods beginning after December 15, 2019. We plan to adopt this guidance during the first quarter of Fiscal 2021 and we are currently in the process of evaluating the impact of this update. We believe the adoption of the guidance will not have a material impact on our consolidated financial statements.

Acquisitions Acquisitions and Strategic Agreements (Notes)

12 Months Ended

May 02, 2020

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note 6. Acquisitions

Acquisitions

PaperRater

On August 21, 2018, we acquired the assets of PaperRater in the DSS Segment. PaperRater is a leading website that offers students a suite of writing services aimed at improving multiple facets of writing. PaperRater's services include plagiarism detection, grammar feedback, and an AI-based writing score predictor, and are highly complementary to Student Brands' existing writing service offerings. PaperRater adds millions of pieces of content, from essays and dissertations to personal narratives and speeches, to our growing digital content library.

We completed the purchase for cash consideration of $10,000 and the transaction was funded from cash on-hand and availability under our existing Credit Agreement. The final purchase price was allocated primarily as follows: $5,300 intangible assets (primarily content with an estimated useful life of 5 years) and $4,700 goodwill. This acquisition is not material to our consolidated financial statements and therefore, disclosure of pro forma financial information has not been presented. The results of operations reflect the period of ownership of the acquired business.

Student Brands, LLC

On August 3, 2017, we acquired 100% of the equity interests of Student Brands in the DSS Segment. Student Brands operates multiple direct-to-student businesses focused on study tools and writing help, all centered on assisting students with the writing process. We completed the purchase for cash consideration of $61,997, including cash acquired of $4,626, and the transaction was funded from cash on-hand and availability under our existing Credit Agreement. The final purchase price allocation was as follows: $28,300 intangible assets, $1,593 acquired working capital and $31,782 goodwill. This acquisition is not material to our consolidated financial statements and therefore, disclosure of pro forma financial information has not been presented.

The results of operations reflect the period of ownership of the acquired business. Identified intangible assets include the following:



Type of Intangible	Amount		Estimated Useful Life
Content	$	14,500	5
Technology	8,000		5
Non-Compete Agreements	4,000		3
Subscriber List	1,800		2
Total Intangibles:	$	28,300

Revenue Revenue (Notes)

12 Months Ended

May 02, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Note 4. Revenue

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required.

We have analyzed the impacts of the guidance across all of our revenue streams and have adopted the standard using the modified retrospective method effective with the first quarter of Fiscal 2019. Financial results for reporting periods beginning after April 28, 2018 are presented in accordance with Topic 606, while comparative period information continues to reflect our historic accounting under the accounting standards in effect for those periods. There was no cumulative change to retained earnings as a result of adopting the guidance. We reclassified the product return asset of $2,610 from Merchandise Inventories, Net to Prepaid Expenses and Other Current Assets on the consolidated balance sheets for the period ended April 28, 2018.

See Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Pronouncements for additional information related to our revenue recognition policies and Part II - Item 8. Financial Statements and Supplementary Data - Note 7. Segment Reporting for a description of each segments product and service offerings.

Disaggregation of Revenue

The following table disaggregates the revenue associated with our major product and service offerings.



	53 weeks ended May 2, 2020			52 weeks ended April 27, 2019			52 weeks ended April 28, 2018
Retail
Product Sales	$	1,493,044		$	1,645,357		$	1,753,528
Rental Income	179,863			195,883			219,145
Service and Other Revenue ^(a)	39,985			47,768			51,868
Retail Total Sales	$	1,712,892		$	1,889,008		$	2,024,541
Wholesale Sales	$	198,353		$	223,374		$	258,369
DSS Sales ^(b)	$	23,661		$	21,339		$	15,762
Eliminations ^(c)	$	(83,843	)	$	(99,078	)	$	(95,055	)
Total Sales	$	1,851,063		$	2,034,643		$	2,203,617


(a)	Service and other revenue primarily relates to brand partnerships and other service revenues.


(b)	DSS sales primarily relate to direct-to-student subscription-based revenue.


(c)	The sales eliminations represent the elimination of Wholesale sales and fulfillment service fees to Retail and the elimination of Retail commissions earned from Wholesale.

Contract Assets and Contract Liabilities

Contract assets represent the sale of goods or services to a customer before we have the right to obtain consideration from the customer. Contract assets consist of unbilled amounts at the reporting date and are transferred to accounts receivable when the rights become unconditional. Contract assets (Unbilled Receivables) were $0 as of both May 2, 2020 and April 27, 2019 on our consolidated balance sheets.

Contract liabilities represent an obligation to transfer goods or services to a customer for which we have received consideration and consists of our deferred revenue liability (Deferred Revenue). Deferred revenue primarily consists of advanced payments from customers related to textbook rental and subscription-based performance obligations that have not yet been satisfied, as well as unsatisfied performance obligations associated with partnership marketing services. Deferred revenue is recognized ratably over the terms of the related rental or subscription periods, or when the contracted services are provided to our partnership marketing customers. Deferred revenue of $13,373 and $20,418 is recorded within Accrued Liabilities on our consolidated balance sheets for the periods ended May 2, 2020 and April 27, 2019, respectively.

The following table presents changes in contract liabilities during the fiscal year ended May 2, 2020:



Deferred revenue as of April 28, 2018	$	20,144
Additions to deferred revenue during the period	212,424
Reductions to deferred revenue for revenue recognized during the period	(212,150		)
Deferred revenue as of April 27, 2019	$	20,418
Additions to deferred revenue during the period	193,235
Reductions to deferred revenue for revenue recognized during the period	(200,280		)
Deferred revenue balance as of May 2, 2020	$	13,373

As of May 2, 2020, we expect to recognize $13,373 of the deferred revenue balance within in the next 12 months.

Leases (Notes)

12 Months Ended

May 02, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Note 5. Leases

Effective the first quarter of Fiscal 2020 (April 28, 2019), we adopted FASB ASC 842, Leases (Topic 842), which requires us to recognize lease assets and lease liabilities on the consolidated balance sheets for substantially all lease arrangements. We adopted this standard using a modified retrospective basis, with no restatement of prior periods. We elected the package of practical expedients permitted under the transition guidance for existing or expired contracts and did not reassess whether such contracts contain leases, the lease classification or the initial direct costs. Additionally, we utilized the historical lease term and did not utilize the practical expedient allowing the use of hindsight in determining the lease term and in assessing impairment of its right-of-use (“ROU”) assets. Additionally, we elected to apply the available practical expedient allowing for the election of an accounting policy by class of underlying asset to combine lease and non-lease components for all of our asset classes.

Our portfolio of leases consists of operating leases comprised of operations agreements which grant us the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. We do not have finance leases or short-term leases (i.e., those with a term of twelve months or less).

We recognize a ROU asset and lease liability in our consolidated balance sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability when it is reasonably certain that such options will be exercised. Our lease terms generally range from one year to fifteen years and a number of agreements contain minimum annual guarantees, many of which are adjusted at the start of each contract year based on the actual sales activity of the leased premises for the most recently completed contract year.

Payment terms are based on the fixed rates explicit in the lease, including minimum annual guarantees, and/or variable rates based on: i) a percentage of revenues or sales arising at the relevant premises ("variable commissions"), and/or ii) operating expenses, such as common area charges, real estate taxes and insurance. For contracts with fixed lease payments, including those with minimum annual guarantees, we recognize lease expense on a straight-line basis over the lease term or over the contract year in order to best reflect the pattern of usage of the underlying leased asset and our minimum obligations arising from these types of leases. Our lease agreements do not contain any material residual value guarantees, material restrictions or covenants.

We used our incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable. We utilized an estimated collateralized incremental borrowing rate as of the effective date or the commencement date of the lease, whichever is later.

The following table summarizes lease expense for the 53 weeks ended May 2, 2020:



	53 weeks ended May 2, 2020
Variable lease expense	$	73,455
Operating lease expense	159,289
Net lease expense	$	232,744

The following table summarizes our minimum fixed lease obligations, excluding variable commissions, as of May 2, 2020:



	As of
	May 2, 2020
Fiscal 2021	$	107,010
Fiscal 2022	56,663
Fiscal 2023	44,356
Fiscal 2024	35,326
Fiscal 2025	22,727
Thereafter	49,767
Total lease payments	315,849
Less: imputed interest	(37,136		)
Operating lease liabilities at period end	$	278,713

Future lease payment obligations related to leases that were entered into, but did not commence as of May 2, 2020, were not material.

The following summarizes additional information related to our operating leases:



	As of
	May 2, 2020
Weighted average remaining lease term (in years)	5.2 years
Weighted average discount rate	4.6		%

Supplemental cash flow information:
Cash payments for lease liabilities within operating activities	$	140,670
ROU assets obtained in exchange for lease liabilities from initial recognition	$	131,175

Segment Reporting (Notes)

12 Months Ended

May 02, 2020

Segment Reporting

Note 7. Segment Reporting

We have three reportable segments: Retail, Wholesale and DSS. Additionally, unallocated shared-service costs, which include various corporate level expenses and other governance functions, continue to be presented as “Corporate Services”.

We identify our segments in accordance with the way our business is managed (focusing on the financial information distributed) and the manner in which our chief operating decision maker allocates resources and assesses financial performance. The following summarizes the three segments. For additional information about this segments operations, see Part I - Item 1. Business.

Retail Segment

The Retail Segment operates 1,419 college, university, and K-12 school bookstores, comprised of 772 physical bookstores and 647 virtual bookstores. Our bookstores typically operate under agreements with the college, university, or K-12 schools to be the official bookstore and the exclusive seller of course materials and supplies, including physical and digital products. The majority of the physical campus bookstores have school-branded e-commerce sites which we operate and which offer students access to affordable course materials and affinity products, including emblematic apparel and gifts. The Retail Segment also offers inclusive access programs, in which course materials, including e-content, are offered at a reduced price through a course materials fee, and delivered to students on or before the first day of class. Additionally, the Retail Segment offers a suite of digital content and services to colleges and universities, including a variety of open educational resource-based courseware.

Wholesale Segment

The Wholesale Segment is comprised of our wholesale textbook business and is one of the largest textbook wholesalers in the country. The Wholesale Segment centrally sources, sells, and distributes new and used textbooks to approximately 3,400 physical bookstores, including our Retail Segment's 772 physical bookstores and sources and distributes new and used textbooks to our 647 virtual bookstores. Additionally, the Wholesale Segment sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 400 college bookstores.

DSS Segment

The Digital Student Solutions (“DSS”) Segment includes direct-to-student products and services to assist students to study more effectively and improve academic performance. The DSS Segment is comprised of the operations of Student Brands, LLC, a leading direct-to-student subscription-based writing services business, and bartleby, a direct-to-student subscription-based offering providing textbook solutions, expert questions and answers, tutoring and test prep services.

Corporate Services

Corporate Services represents unallocated shared-service costs which include corporate level expenses and other governance functions, including executive functions, such as accounting, legal, treasury, information technology, and human resources.

Eliminations

The eliminations are primarily related to the following intercompany activities:


•	The sales eliminations represent the elimination of Wholesale sales and fulfillment service fees to Retail and the elimination of Retail commissions earned from Wholesale, and

•

These cost of sales eliminations represent (i) the recognition of intercompany profit for Retail inventory that was purchased from Wholesale in a prior period that was subsequently sold to external customers during the current period and the elimination of Wholesale service fees charged for fulfillment of inventory for virtual store sales, net of (ii) the elimination of intercompany profit for Wholesale inventory purchases by Retail that remain in ending inventory at the end of the current period.

Our international operations are not material and the majority of the revenue and total assets are within the United States.



	As of
	May 2, 2020		April 27, 2019
Total Assets
Retail (includes goodwill of $0 and $0, respectively)	$	867,288	$	707,975
Wholesale (includes goodwill of $0 and $0, respectively)	248,464		191,976
DSS (includes goodwill of $4,700 and $4,700, respectively)	35,689		40,543
Corporate Services	4,991		5,686
Total Assets	$	1,156,432	$	946,180



	53 weeks ended May 2, 2020		52 weeks ended April 27, 2019		52 weeks ended April 28, 2018
Capital Expenditures
Retail	$	28,546	$	33,008	$	38,598
Wholesale	2,126		1,824		1,559
DSS ^(a)	5,425		11,444		2,620
Corporate Services	95		144		32
Total Capital Expenditures	$	36,192	$	46,420	$	42,809

(a) Primarily comprised of content development costs for bartleby.com textbook solutions which was launched in Fiscal 2019.

Summarized financial information for our reportable segments is reported below:



	53 weeks ended May 2, 2020 ^(a)			52 weeks ended April 27, 2019^(b)			52 weeks ended April 28, 2018^(c)
Sales:
Retail	$	1,712,892		$	1,889,008		$	2,024,541
Wholesale	198,353			223,374			258,369
DSS	23,661			21,339			15,762
Eliminations	(83,843		)	(99,078		)	(95,055		)
Total Sales	$	1,851,063		$	2,034,643		$	2,203,617

Gross Profit
Retail	$	383,282		$	451,871		$	482,226
Wholesale	39,805			56,341			60,328
DSS	19,313			20,030			15,403
Eliminations	149			(516		)	(724		)
Total Gross Profit	$	442,549		$	527,726		$	557,233

Depreciation and Amortization
Retail	$	47,099		$	51,728		$	53,955
Wholesale	5,963			6,014			6,188
DSS	8,670			7,974			5,253
Corporate Services	128			149			190
Total Depreciation and Amortization	$	61,860		$	65,865		$	65,586

Operating Loss
Retail ^(d)	$	(24,445	)	$	3,751		$	(265,843	)
Wholesale^(d)	12,909			(2,131		)	31,388
DSS	(8,529		)	(3,345		)	226
Corporate Services	(23,077		)	(25,463		)	(27,750		)
Eliminations	359			(466		)	(724		)
Total Operating Loss ^(d)	$	(42,783	)	$	(27,654	)	$	(262,703	)

The following is a reconciliation of segment Operating Loss to consolidated Income Before Income Taxes
Total Operating Loss	$	(42,783	)	$	(27,654	)	$	(262,703	)
Interest Expense, net	(7,445		)	(9,780		)	(10,306		)
Total Loss Before Income Taxes	$	(50,228	)	$	(37,434	)	$	(273,009	)


(a)	In Fiscal 2020, our business experienced an unprecedented and significant impact as a result of COVID-19 related campus store closures (the majority of which began in mid-March). The impact of the store closures affects the comparability of our results of operations and cash flows.


(b)	We acquired PaperRater on August 21, 2018. The consolidated financial statements for the 52 weeks ended April 27, 2019 include the financial results of PaperRater from the acquisition date, August 21, 2018, to April 27, 2019.


(c)	We acquired Student Brands, LLC on August 3, 2017. The consolidated financial statements for the 52 weeks ended April 28, 2018 include the financial results of Student Brands from the acquisition date, August 3, 2017, to April 28, 2018.


(d)	In Fiscal 2019, we recorded goodwill impairment (non-cash impairment loss) of $20,538 and $28,744 in our Retail and Wholesale Segments, respectively.

In Fiscal 2018, we recorded a goodwill impairment (non-cash impairment loss) of $313,130 in our Retail Segment (prior BNC segment) based on the results of our annual goodwill impairment test.

Equity and Earnings Per Share (Notes)

12 Months Ended

May 02, 2020

Equity and Earnings Per Share [Text Block]

Note 8. Equity and Earnings Per Share

Equity

Our authorized capital stock consists of 200,000,000 shares of common stock, par value $0.01 per share, and 5,000,000 shares of preferred stock, par value $0.01 per share. As of May 2, 2020, 48,297,554 shares of our common stock and 0 shares of our preferred stock were issued and outstanding. Our common stock trades on the NYSE under the symbol “BNED”.

The holders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Holders of shares of our common stock do not have cumulative voting rights in the election of directors. The holders of our common stock will be entitled to share ratably in our assets legally available for distribution to our stockholders, subject to the prior distribution rights of preferred stock, if any, then outstanding. The holders of our common stock do not have preemptive rights or preferential rights to subscribe for shares of our capital stock.

We have reserved 10,409,345 shares of common stock for future grants in accordance with the Barnes & Noble Education Inc. Equity Incentive Plan. See Part II - Item 8. Financial Statements and Supplementary Data - Note 14. Stock-Based Compensation.

On March 25, 2020, our Board of Directors approved the adoption of a short-term stockholder rights plan and declared a dividend distribution of one preferred share purchase right on each outstanding share of our common stock. The dividend was payable to holders of record as of the close of business on April 10, 2020. The rights will be exercisable only if a person or group acquires 10% or more of our outstanding common stock. Each right will entitle stockholders to buy one one-thousandth of a share of our preferred stock at an established exercise price. The Rights will expire no later than December 31, 2020. For additional information, see the Form 8-K dated March 25, 2020 and filed with the SEC on March 26, 2020.

Share Repurchases

On December 14, 2015, our Board of Directors authorized a stock repurchase program of up to $50,000, in the aggregate, of our outstanding common stock. The stock repurchase program is carried out at the direction of management (which may include a plan under Rule 10b5-1 of the Securities Exchange Act of 1934). The stock repurchase program may be suspended, terminated, or modified at any time. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes. During the Fiscal 2020, Fiscal 2019 and Fiscal 2018, we did not purchase shares under the stock repurchase program. As of May 2, 2020, approximately $26,669 remains available under the stock repurchase program.

During the Fiscal 2020, Fiscal 2019 and Fiscal 2018, we also repurchased 374,733 shares, 351,043 shares, and 260,531 shares of our common stock in connection with employee tax withholding obligations for vested stock awards, respectively.

Dividends

We paid no other dividends to common stockholders during Fiscal 2020, Fiscal 2019 and Fiscal 2018. We do not intend to pay dividends on our common stock in the foreseeable future.

Earnings Per Share

Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year. We include participating securities (unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of unvested restricted stock awards, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. During the Fiscal 2020, Fiscal 2019 and Fiscal 2018, average shares of 3,795,603, 2,939,089 and 2,494,799 were excluded from the diluted earnings per share calculation using the two-class method as their inclusion would have been antidilutive, respectively.

The following is a reconciliation of the basic and diluted earnings per share calculation:



(shares in thousands)	53 weeks ended May 2, 2020			52 weeks ended April 27, 2019			52 weeks ended April 28, 2018
Numerator for basic and diluted earnings per share:
Net loss available to common shareholders	$	(38,250	)	$	(24,374	)	$	(252,566	)

Denominator for basic and diluted earnings per share:
Basic and diluted weighted average shares of Common Stock	48,013			47,306			46,763
Loss per share of Common Stock:
Basic	$	(0.80	)	$	(0.52	)	$	(5.40	)
Diluted	$	(0.80	)	$	(0.52	)	$	(5.40	)

Fair Values of Financial Instruments (Notes)

12 Months Ended

May 02, 2020

Fair Values of Financial Instruments

Note 9. Fair Values of Financial Instruments

In accordance with ASC No. 820, Fair Value Measurements and Disclosures, the fair value of an asset is considered to be the price at which the asset could be sold in an orderly transaction between unrelated knowledgeable and willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Assets and liabilities recorded at fair value are measured using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

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 us to develop our own assumptions

Our financial instruments include cash and cash equivalents, receivables, accrued liabilities and accounts payable. The fair values of cash and cash equivalents, receivables, accrued liabilities and accounts payable approximates their carrying values due to the short-term nature of these instruments, which are all considered Level 1. The fair value of short-term and long-term debt approximates its carrying value.

For nonrecurring fair value measurements associated with impairment testing performed during Fiscal 2019, refer to Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Policies - Other Long-lived Assets and Note 2. Summary of Significant Accounting Policies - Goodwill where we determined the fair value of impaired assets using Level 3 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Credit Facility (Notes)

12 Months Ended

May 02, 2020

Credit Facility

Note 10. Credit Facility

We have a credit agreement (the “Credit Agreement”), amended March 1, 2019, under which the lenders committed to provide us with a five-year asset-backed revolving credit facility in an aggregate committed principal amount of $400,000 (the “Credit Facility”) effective from the date of the amendment. We have the option to request an increase in commitments under the Credit Facility of up to $100,000, subject to certain restrictions. Proceeds from the Credit Facility are used for general corporate purposes, including seasonal working capital needs. The agreement includes an incremental first in, last out seasonal loan facility (the “FILO Facility”) for a $100,000 incremental facility maintaining the maximum availability under the Credit Agreement at $500,000. On March 2, 2020, we were granted a waiver to the condition to the current draw under the FILO Facility that Consolidated EBITDA (as defined in the Credit Agreement) minus Restricted Payments (as defined in the Credit Agreement) equal at least $90,000.

As of May 2, 2020, we had outstanding borrowings of $99,700 and $75,000 under the Credit Facility and FILO Facility, respectively. As of April 27, 2019, we had outstanding borrowings of $33,500 and $100,000 under the Credit Facility and FILO Facility, respectively.

During the 53 weeks ended May2, 2020, we borrowed $600,900 and repaid $559,700 under the Credit Agreement, and had a net total $174,700 of outstanding borrowings as of May 2, 2020. During 52 weeks ended April 27, 2019, we borrowed $521,200 and repaid $584,100 under the Credit Agreement, and had a net total of $133,500 of outstanding borrowings as of April 27, 2019. As of both May 2, 2020 and April 27, 2019, we issued $4,759 in letters of credit under the Credit Facility, respectively. During 52 weeks ended April 28, 2018, we borrowed $674,500 and repaid $637,700 under the Credit Facility.

During 52 weeks ended April 27, 2019, we incurred debt issuance costs totaling $3,395 related to the March 1, 2019 Credit Facility amendment and recorded a write-off of $118 of existing unamortized debt issuance costs. The debt issuance costs have been deferred and are presented as an asset which is subsequently amortized ratably over the term of the credit agreement.

The Credit Facility is secured by substantially all of the inventory, accounts receivable and related assets of the borrowers under the Credit Facility, but excluding the equity interests in us and our subsidiaries, intellectual property, equipment and certain other property.

Interest under the Credit Facility accrues, at our election, at a LIBOR or alternate base rate, plus, in each case, an applicable interest rate margin, which is determined by reference to the level of excess availability under the Credit Facility. Loans will initially bear interest at LIBOR plus 1.750% per annum, in the case of LIBOR borrowings, or at the alternate base rate plus 0.750% per annum, in the alternative, and thereafter the interest rate will fluctuate 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 excess availability under the Credit Facility at such time.

Loans under the FILO Facility will bear interest at a rate equal to the LIBOR rate, plus 2.750%. In connection with the waiver, the applicable margin for credit extensions made under the FILO Facility after March 2, 2020 through the end of 2020 was increased by 0.50% (to 3.25% per annum for LIBO rate loans and 2.25% for base rate loans). The FILO Facility will be available solely during the draw period each year, from April 1 through July 31. We are required to borrow 100% of the aggregate commitments under the FILO Facility on April 1 of each year, and the loans must be repaid in full (including interest and fees) on July 31 of each year. The commitments under the FILO Facility will decrease from $75 million to $50 million on August 1, 2020 and from $50 million to $25 million on August 1, 2021. We will pay a commitment fee of 0.375% on the daily unused portion of the FILO Facility.

The Credit Facility 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 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 have the right to assume dominion and control over the Company's cash.

The Credit Facility 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 Credit Facility also contains customary affirmative covenants and representations and warranties. We are in compliance with all covenants, representations and warranties under the Credit Facility as of May 2, 2020.

We believe that our future cash from operations, access to borrowings under the Credit Facility, FILO Facility and short-term vendor financing will provide adequate resources to fund our operating and financing needs for the foreseeable future. Our future capital requirements will depend on many factors, including, but not limited to, the economy and the outlook for and pace of sustainable growth in our markets, the levels at which we maintain inventory, the number and timing of new store openings, and any potential acquisitions of other brands or companies including digital properties. To the extent that available funds are insufficient to fund our future activities, we may need to raise additional funds through public or private financing of debt or equity. Our access to, and the availability of, financing in the future will be impacted by many factors, including the liquidity of the overall capital markets and the current state of the economy. There can be no assurances that we will have access to capital markets on acceptable terms.

Supplementary Information Supplementary Information (Notes)

12 Months Ended

May 02, 2020

Other Income and Expenses [Abstract]

Supplementary Information [Text Block]

Note 11. Supplementary Information

Impairment Loss (non-cash)

We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets. For information, see Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Policies.

During the 53 weeks ended May 2, 2020, we recognized an impairment loss (non-cash) of $433 in the Retail segment related to net capitalized development costs for a project which are not recoverable.

During the 52 weeks ended April 27, 2019, we recorded an impairment loss (non-cash) of $57,748, comprised of $49,282 of goodwill and $8,466 of long-lived assets.

During the 52 weeks ended April 28, 2018, we recorded an impairment loss (non-cash) of $313,130 related to goodwill.

Restructuring and Other Charges

During the 53 weeks ended May 2, 2020, we recognized restructuring and other charges totaling $18,567 comprised of $12,667 for severance and other employee termination and benefit costs associated with several management changes ($10,370 is included in accrued liabilities in the consolidated balance sheet as of May 2, 2020), the elimination of various positions as part of cost reduction objectives, and professional service costs for process improvements, and $2,695 related to an actuarial loss for a frozen retirement benefit plan (non-cash), $2,841 for professional service costs for shareholder activist activities, and $587 related to a store-level asset impairment charge, offset by $223 related to reduction of liabilities for a facility closure.

During the 52 weeks ended April 27, 2019, we recognized restructuring and other charges totaling $7,233 comprised of $4,554 for severance and transition payments related to senior management changes, other employee termination and benefit costs, and other charges totaling $2,679, primarily comprised of$2,274 in an actuarial loss for a frozen retirement benefit plan (non-cash), $281 related to additional liabilities for a facility closure, and a write-off of $118 of existing unamortized debt issuance costs.

During the 52 weeks ended April 28, 2018, we recognized restructuring and other charges totaling $5,429, which is primarily comprised of severance and transition payments related to senior management changes.

Intangible Assets

Amortizable intangible assets as of May 2, 2020 and April 27, 2019 are as follows:



		As of May 2, 2020
Amortizable intangible assets	Remaining Life	Gross Carrying Amount		Accumulated Amortization			Total
Customer relationships	10 - 14	$	271,800	$	(113,280	)	$	158,520
Content	2 - 3	19,400		(9,615		)	9,785
Technology ^(a)	2	9,500		(5,900		)	3,600
Other ^(b)	1 - 8	8,930		(5,710		)	3,220
		$	309,630	$	(134,505	)	$	175,125


(a)	Other consists of recognized intangibles for non-compete agreements and trade names.



		As of April 27, 2019
Amortizable intangible assets	Remaining Life	Gross Carrying Amount		Accumulated Amortization			Total
Customer relationships	1 - 15	$	271,800	$	(101,781	)	$	170,019
Content	3 - 4	19,400		(5,728		)	13,672
Technology ^(a)	1 - 3	9,500		(3,883		)	5,617
Other ^(b)	1 - 9	9,831		(4,161		)	5,670
		$	310,531	$	(115,553	)	$	194,978


(a)	See Impairment Loss (non-cash) discussion above.


(b)	Other consists of recognized intangibles for non-compete agreements, trade names, and favorable leasehold interests.

All amortizable intangible assets are being amortized over their useful life on a straight-line basis.



Aggregate Amortization Expense:
For the 53 weeks ended May 2, 2020	$	19,310
For the 52 weeks ended April 27, 2019	$	21,314
For the 52 weeks ended April 28, 2018	$	19,056



Estimated Amortization Expense: (Fiscal Year)
2021	$	17,634
2022	$	17,301
2023	$	13,923
2024	$	12,060
2025	$	11,700
After 2025	$	102,507

For additional information about intangible assets, see Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Policies and Note 6. Acquisitions.

Goodwill

The following table details the changes in carrying value of goodwill (including foreign currency translation):



Balance at April 29, 2018	$	49,282
Goodwill related to PaperRater acquisition	4,700
Impairment loss (non-cash) ^(a)	(49,282		)
Balance at both April 27, 2019 and May 2, 2020	$	4,700


(a)	See Impairment Loss (non-cash) discussion above.

As of May 2, 2020, goodwill of approximately $73,119 was deductible for federal income tax purposes. This is higher than the goodwill balance reflected on the consolidated balance sheet as of May 2, 2020 due to impairment losses recorded in Fiscal 2018 and Fiscal 2019.

For additional information related to goodwill, see Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Policies and Note 6. Acquisitions.

Related Party Transactions Related Party Transctions (Notes)	12 Months Ended
	May 02, 2020
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 12. Related Party Transactions MBS Textbook Exchange, LLC Prior to the acquisition of MBS on February 27, 2017, MBS was considered a related-party as it was majority-owned by Leonard Riggio, who is a principal owner holding substantial shares of our common stock, and other members of the Riggio family. Subsequent to the acquisition, the consolidated financial statements include the accounts of MBS and all material intercompany accounts and transactions have been eliminated in consolidation. MBS leases its main warehouse and distribution facility located in Columbia, Missouri from MBS Realty Partners L.P. which is majority-owned by Leonard Riggio, with the remaining ownership by other sellers of MBS. The lease was originally entered into in 1991 and included a renewal option which extended the lease through September 1, 2023. Based upon a valuation performed as of the acquisition date, the lease was determined to be favorable from a lessee perspective with below market rent. Rent payments to MBS Realty Partners L.P. were approximately $1,380 in Fiscal 2020, Fiscal 2019 and Fiscal 2018.

Employees' Defined Contribution Plan (Notes)

12 Months Ended

May 02, 2020

Employees' Defined Contribution Plan

Note 13. Employee Benefit Plans

We sponsor defined contribution plans for the benefit of substantially all of the employees of BNC and DSS. MBS maintains a profit sharing plan covering substantially all full-time employees of MBS. For all plans, we are responsible to fund the employer contributions directly. Total employee benefit expense for these plans was $5,015, $6,702, and $7,196 during 53 weeks ended May 2, 2020, 52 weeks ended April 27, 2019, and 52 weeks ended April 28, 2018, respectively.

Effective April 2020, due to the significant impact as a result of COVID-19 related campus store closures, we have temporarily suspended employer matching contributions into our 401(k) plans through the end of December 2020 (the first 9 months of Fiscal 2021).

Stock-Based Compensation (Notes)

12 Months Ended

May 02, 2020

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement [Text Block]

Note 14. Stock-Based Compensation

We have reserved 10,409,345 shares of our common stock for future grants in accordance with the Barnes & Noble Education Inc. Equity Incentive Plan. Types of equity awards that can be granted under the Equity Incentive Plan include options, restricted stock (“RS”), restricted stock units (“RSU”), performance shares (“PS”) and performance share units (“PSU”). We have not granted options under the Equity Incentive Plan.

A RS award is an award of common stock that is subject to certain restrictions during a specified period. Restricted stock awards are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of unvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon (although payment may be deferred until the shares have vested) and are considered to be currently issued and outstanding. Restricted stock awards will have a minimum vesting period of one year.

A RSU is a grant valued in terms of our common stock, but no stock is issued at the time of grant. Each restricted stock unit may be redeemed for one share of our common stock once vested. Restricted stock units are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the units except in very limited circumstances and with the consent of the compensation committee. Shares associated with unvested restricted stock units have no voting rights but are entitled to receive dividends and other distributions thereon (although payment may be deferred until the units have vested). Restricted stock units generally vest over a period of three years, but will have a minimum vesting period of one year.

PS awards and PSU awards were granted to employees. Each PS and PSU may be redeemed for one share of our common stock once vested and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the PS or PSU awards except in very limited circumstances and with the consent of the compensation committee. Shares of unvested PSU awards have no voting rights but are entitled to receive dividends and other distributions thereon (although payment may be deferred until the shares or units, as the case may be, have vested). The PS and PSU awards will only vest based upon the achievement of pre-established performance goals related to Adjusted EBITDA, segment revenue, new business, and/or total shareholder return performance achieved over a period of time. The PS and PSU awards will vest based on company performance and/or market conditions during the subsequent two year period with one additional year of time-based vesting. The number of PS and PSU awards that will vest range from 0%-150% of the target award based on actual performance.

We recognize compensation expense for awards ratably over the requisite service period of the award, which is generally three years. We recognize compensation expense based on the number of awards expected to vest using an estimated average forfeiture rate. We calculate the fair value of stock-based awards based on the closing price on the date the award was granted. For those awards with market conditions, we have determined the grant date fair value using the Monte Carlo simulation model.

Stock-Based Compensation Activity

The following table presents a summary of awards activity related to our current Equity Incentive Plan:



	Restricted Stock Awards				Restricted Stock Units				Performance Shares				Performance Share Units
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value
Balance, April 29, 2017	12,371		$	9.70	1,731,623		$	10.70	406,078		$	9.52	—		$	—
Granted	19,704		$	6.09	1,640,926		$	5.88	—		$	—	537,756		$	7.90
Vested	(12,371	)	$	9.70	(697,370	)	$	10.93	—		$	—	—		$	—
Forfeited ^(a)	—		$	—	(355,055	)	$	9.04	(120,142	)	$	9.52	—		$	—
Balance, April 28, 2018	19,704		$	6.09	2,320,124		$	7.47	285,936		$	9.52	537,756		$	7.90
Granted	21,506		$	5.58	1,443,746		$	5.58	—		$	—	385,171		$	4.18
Vested	(19,704	)	$	6.09	(1,056,486	)	$	8.31	—		$	—	—		$	—
Forfeited ^(a)	—		$	—	(355,067	)	$	6.23	(60,425	)	$	9.52	(157,028	)	$	6.83
Balance, April 27, 2019	21,506		$	5.58	2,352,317		$	6.12	225,511		$	9.52	765,899		$	6.25
Granted	38,096		$	3.15	1,541,154		$	3.08	—		$	—	709,517		$	2.23
Vested	(21,506	)	$	5.58	(1,138,984	)	$	6.56	(56,380	)	$	9.52	—		$	—
Forfeited ^(a)	—		$	—	(504,409	)	$	4.69	(169,131	)	$	9.52	(151,649	)	$	5.31
Balance, May 2, 2020	38,096		$	3.15	2,250,078		$	4.21	—		$	—	1,323,767		$	4.20

(a) The PS and PSUs forfeitures reflect a cumulative adjustment to reflect changes to the expected level of achievement of the respective grants.

Total fair value of vested share awards since the inception of the Equity Incentive Plan is $35,494.

Stock-Based Compensation Expense

We recognized stock-based compensation expense for equity-based awards in selling and administrative expenses as follows:



	53 weeks ended May 2, 2020		52 weeks ended April 27, 2019		52 weeks ended April 28, 2018
Restricted Stock Expense	$	120	$	110	$	120
Restricted Stock Units Expense	6,253		7,846		8,370
Performance Shares Expense ^(a)	12		87		(218		)
Performance Share Units Expense ^(a)	253		974		187
Stock-Based Compensation Expense	$	6,638	$	9,017	$	8,459


(a)	Stock-based compensation expense reflects cumulative adjustments to reflect changes to the expected level of achievement of the respective grants.

Total unrecognized compensation cost related to unvested awards as of May 2, 2020 was $6,400 and is expected to be recognized over a weighted-average period of 1.58 years.

Income Taxes Income Taxes (Notes)

12 Months Ended

May 02, 2020

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 15. Income Taxes

For Fiscal 2020, Fiscal 2019, and Fiscal 2018, we had no material revenue or expense in jurisdictions outside the United States.

Impact of U.S. Tax Reform

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate income tax rate from 35% to 21% and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, among other provisions. In accordance with SAB 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (SAB 118), we completed our accounting for the tax effects of the enactment of the Act within the provisional period as of April 27, 2019. We recorded measurement period adjustments during Fiscal 2019 to reduce our net deferred tax liability by $3,911, which primarily related to the acceleration of certain deductions as permitted by the U.S. tax code. The most significant impact of the legislation for the Company was a $20,425 reduction of the value of our net deferred (which represents future tax liabilities) and long-term tax liabilities as a result of lowering the U.S. corporate income tax rate from 35% to 21%, which was recorded in Fiscal 2018. We also recorded a liability associated with the one-time transition tax, however, such amount is not material.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (The “CARES Act”) was enacted. We have analyzed the provisions, which provide for a technical correction to allow for full expensing of qualified leasehold improvements, modifications to charitable contribution and net operating loss limitations, modifications to the deductibility of business interest expense, as well as Alternative Minimum Tax ("AMT") credit acceleration. The technical correction for qualified leasehold improvements allows us to accelerate deductions for assets placed in service in prior years, but the CARES Act is not otherwise expected to have a material impact on our income tax provision for Fiscal 2020.

Income tax benefits for Fiscal 2020, Fiscal 2019 and Fiscal 2018 are as follows:



	Fiscal 2020			Fiscal 2019			Fiscal 2018
Current:
Federal ^(a)	$	(5,471	)	$	(6,494	)	$	(8,089	)
State	(1,127		)	(2,035		)	2,410
Total Current	(6,598		)	(8,529		)	(5,679		)
Deferred:
Federal ^(a)	(4,086		)	(3,681		)	(13,250		)
State	(1,294		)	(850		)	(1,514		)
Total Deferred	(5,380		)	(4,531		)	(14,764		)
Total	$	(11,978	)	$	(13,060	)	$	(20,443	)


(a)	For Fiscal 2018, the income tax benefit was caused largely by the revaluation due to the change in the U.S. corporate income tax rate from 35% to 21% as described above.

Reconciliation between the effective income tax rate and the federal statutory income tax rate is as follows:



	Fiscal 2020		Fiscal 2019		Fiscal 2018
Federal statutory income tax rate ^(a)	21.0	%	21.0	%	34.1	%
State income taxes, net of federal income tax benefit	3.7		6.3		(0.3	)
Permanent book / tax differences	(2.9	)	(3.9	)	(0.7	)
Goodwill impairment	—		—		(34.2	)
Provisional remeasurement due to Tax Legislation	—		10.4		7.5
Credits	0.5		0.3		0.2
Other, net	1.5		0.8		0.9
Effective income tax rate	23.8	%	34.9	%	7.5	%


(a)	Due to the Act, we applied a U.S. statutory federal income tax rate of 33.9% for earnings between April 30, 2017 and January 27, 2018, and 21% for earnings between January 28, 2018 and April 28, 2018. The result is an effective statutory rate of 34.1% for Fiscal 2018.

The effective tax rate for Fiscal 2020 is significantly lower as compared to the comparable prior year period due to various permanent differences and the impact of the Act recorded in Fiscal 2019.

One percentage point on our Fiscal 2020 effective tax rate is approximately $502. The permanent book / tax differences are principally comprised of non-deductible compensation, non-deductible meals and entertainment costs, and federal income tax credits.

We account for income taxes using the asset and liability method. Deferred taxes are recorded based on differences between the financial statement basis and tax basis of assets and liabilities and available tax loss and credit carryforwards. The significant components of our deferred taxes consisted of the following:



	As of
	5/2/2020			4/27/2019
Deferred tax assets:
Estimated accrued liabilities	$	11,046		$	10,972
Inventory	7,167			2,969
Stock-based compensation	1,511			1,738
Insurance liability	528			518
Operating lease liabilities	65,334			982
Tax credits	484			402
Goodwill	18,438			19,903
Net operating losses	4,992			4,928
Other	8,853			8,253
Gross deferred tax assets	118,353			50,665
Valuation allowance	(1,231		)	(1,194		)
Net deferred tax assets	117,122			49,471
Deferred tax liabilities:
Intangible asset amortization	(37,864		)	(40,790		)
Operating lease right-of-use assets	(64,695		)	—
Property and equipment	(6,758		)	(6,256		)
Gross deferred tax liabilities	(109,317		)	(47,046		)
Net deferred tax asset	$	7,805		$	2,425

As of May 2, 2020, we had $52 of unrecognized tax benefits, all of which, if recognized, would affect our effective tax rate. We do not believe that it is reasonably possible that these unrecognized tax benefits will decrease in the next twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



Balance at April 29, 2017	$	86
Additions for tax positions of the current period	25
Additions for tax positions of prior periods	2
Reductions due to settlements	—
Other reductions for tax positions of prior periods	(16		)
Balance at April 28, 2018	$	97
Additions for tax positions of the current period	—
Additions for tax positions of prior periods	—
Reductions due to settlements	—
Other reductions for tax positions of prior periods	(6		)
Balance at April 27, 2019	$	91
Additions for tax positions of the current period	—
Additions for tax positions of prior periods	—
Reductions due to settlements	—
Other reductions for tax positions of prior periods	(39		)
Balance at May 2, 2020	$	52

Our policy is to recognize interest and penalties related to income tax matters in income tax expense. As of May 2, 2020 and April 27, 2019, we had accrued $3 and $4, respectively, for net interest and penalties. The change in the amount accrued for net interest and penalties includes $1 in reductions for net interest and penalties recognized in income tax expense in our Fiscal 2020 consolidated statement of operations.

In assessing the realizability of the deferred tax assets, management considered whether it is more likely than not that some or all of the deferred tax assets would be realized. In evaluating our ability to utilize our deferred tax assets, we considered all available evidence, both positive and negative, in determining future taxable income on a jurisdiction by jurisdiction basis. We have recorded a valuation allowance of $1,231 and $1,194 for May 2, 2020 and April 27, 2019, respectively.

As of May 2, 2020, and based on our tax year ended January 2020, we had state net operating loss carryforwards (“NOLs”) of approximately $83,999 that are available to offset taxable income in our respective taxing jurisdiction beginning in the current period and that expire beginning in 2030. We had net state tax credit carryforwards totaling $612, which expire beginning in 2021.

As of May 2, 2020, we recorded $200 of foreign withholding tax related to repatriations of earnings from certain foreign subsidiaries. If additional earnings in these foreign subsidiaries were repatriated in the future, additional income and withholding tax expense would be incurred. Additional income and withholding tax expense on any future repatriated earnings is estimated to be less than $100.

We are subject to U.S. federal income tax, as well as income tax in jurisdictions of each state having an income tax. The tax years that remain subject to examination are primarily Fiscal 2014 and forward. Some earlier years remain open for a small minority of states. We retain an income tax liability for periods prior to the Spin-Off from Barnes & Noble, Inc. only for returns filed on a stand-alone basis.

Legal Proceedings (Notes)

12 Months Ended

May 02, 2020

Legal Proceedings

Note 16. Legal Proceedings

We are involved in a variety of claims, suits, investigations and proceedings that arise from time to time in the ordinary course of our business, including actions with respect to contracts, intellectual property, taxation, employment, benefits, personal injuries and other matters. We record a liability when we believe that it is both probable that a loss has been incurred and the amount of loss can be reasonably estimated. Based on our current knowledge, we do not believe that there is a reasonable possibility that the final outcome of any pending or threatened legal proceedings to which we or any of our subsidiaries are a party, either individually or in the aggregate, will have a material adverse effect on our future financial results. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond our control. As such, there can be no assurance that the final outcome of these matters will not materially and adversely affect our business, financial condition, results of operations or cash flows.

Between January 22, 2020, and May 20, 2020, eleven purported class action complaints were filed in the United States District Court for the District of Delaware, the United States District Court for the District of New Jersey, and the United States District Court for the Northern District of Illinois against the Company, along with several publishers, another collegiate bookstore retailer, and an industry association. The plaintiffs are retailers of collegiate course materials or current or former college students. Although the specific allegations vary slightly, they claim, on their own behalf and on behalf of the purported classes, that the Company and the other defendants violated Section 1 of the Sherman Act (15 U.S.C. § 1), Section 2 of the Sherman Act (15 U.S.C. § 2), Section 13(a) of the Robinson-Patman Act (15 U.S.C. §13(a)), and various state antitrust and unfair trade practices laws for alleged activities in connection with inclusive access and the sale of course materials to universities and their students. The United States Judicial Panel on Multidistrict Litigation is considering whether to consolidate these and other related cases in a consolidated proceeding. We intend to vigorously defend this matter and are currently unable to estimate any potential losses.

Commitments and Contingencies Commitments and Contingencies (Notes)

12 Months Ended

May 02, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 17. Commitments and Contingencies

We generally operate our physical bookstores pursuant to multi-year school management contracts under which a school designates us to operate the official school physical bookstore on campus and we provide the school with regular payments that represent a percentage of store sales and, in some cases, include a minimum fixed guaranteed payment. We account for these service agreements for our physical bookstores under lease accounting. Prior to the adoption of FASB ASC 842, Leases (Topic 842) ("ASC 842") as discussed below, the excess of such minimum contract expense over actual contract payments (net of school allowances) was reflected in other long-term liabilities and accrued liabilities in the consolidated balance sheets.

Effective the first quarter of Fiscal 2020 (April 28, 2019), we adopted ASC 842, which requires us to recognize lease assets and lease liabilities on the consolidated balance sheets for substantially all fixed lease arrangements (excluding variable obligations) with a term greater than twelve months. For additional information on Fiscal 2020 lease expense and minimum fixed lease obligations, excluding variable commissions, see Part II - Item 8. Financial Statements and Supplementary Data - Note 5. Leases.

The expense related to our college and university contracts for physical bookstores, including rent expense, and other facility costs in the consolidated statements of operations for periods prior to adoption of ASC 842 in Fiscal 2020 are as follows:



	Fiscal 2019		Fiscal 2018
Minimum contract expense	$	169,131	$	170,351
Percentage contract expense	73,368		80,630
Total expense	$	242,499	$	250,981

Purchase obligations, which includes information technology contracts and inventory purchase commitments, as of May 2, 2020 are as follows:



Less Than 1 Year	$	10,650
1-3 Years	8,026
3-5 Years	3,154
Total	$	21,830

Selected Quarterly Financial Information (Unaudited) Selected Quarterly Financial Information (Unaudited) (Notes)

12 Months Ended

May 02, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information [Text Block]

Note 18. Selected Quarterly Financial Information (Unaudited)

A summary of quarterly financial information for 53 weeks ended May 2, 2020 and 52 weeks ended April 27, 2019 is as follows:



Fiscal 2020 Quarterly Period Ended	13 weeks ended July 27, 2019			13 weeks ended October 26, 2019		13 weeks ended January 25, 2020			14 weeks ended May 2, 2020 ^(a)			53 weeks ended May 2, 2020
Sales	$	319,657		$	772,228	$	502,292		$	256,886		$	1,851,063
Gross profit	$	71,657		$	186,950	$	118,535		$	65,407		$	442,549
Net (loss) income	$	(32,155	)	$	35,931	$	(1,693	)	$	(40,333	)	$	(38,250	)
Basic (loss) earnings per common share:
Net (loss) income	$	(0.68	)	$	0.75	$	(0.04	)	$	(0.84	)	$	(0.80	)
Diluted (loss) earnings per common share:
Net (loss) income	$	(0.68	)	$	0.74	$	(0.04	)	$	(0.84	)	$	(0.80	)



Fiscal 2019 Quarterly Period Ended	13 weeks ended July 28, 2018			13 weeks ended October 27, 2018		13 weeks ended January 26, 2019		13 weeks ended April 27, 2019			52 weeks ended April 27, 2019
Sales	$	337,484		$	814,766	$	548,008	$	334,385		$	2,034,643
Gross profit	$	66,610		$	210,760	$	132,953	$	117,403		$	527,726
Net (loss) income	$	(38,622	)	$	59,697	$	769	$	(46,218	)	$	(24,374	)
Basic (loss) earnings per common share:
Net (loss) income	$	(0.82	)	$	1.26	$	0.02	$	(0.97	)	$	(0.52	)
Diluted (loss) earnings per common share:
Net (loss) income	$	(0.82	)	$	1.25	$	0.02	$	(0.97	)	$	(0.52	)

(a) During the fourth quarter of Fiscal 2020, our business experienced an unprecedented and significant impact as a result of COVID-19 related campus store closures (the majority of which began in mid-March). The impact of the store closures affects the comparability of our results of operations and cash flows.

Schedule II Valuation and Qualifying Accounts Schedule II Valuation and Qualifying Accounts (Notes)

12 Months Ended

May 02, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Schedule II—Valuation and Qualifying Accounts

Receivables Valuation and Qualifying Accounts

(In thousands)

For the 53 weeks ended May 2, 2020, 52 weeks ended April 27, 2019, and 52 weeks ended April 28, 2018:



	Balance at beginning of period		Charge (recovery) to costs and expenses		Write-offs			Balance at end of period
Allowance for Doubtful Accounts
May 2, 2020	$	2,135	$	1,710	$	(1,859	)	$	1,986
April 27, 2019	$	2,083	$	2,670	$	(2,618	)	$	2,135
April 28, 2018	$	2,259	$	3,518	$	(3,694	)	$	2,083

	Balance at beginning of period		Addition Charged to Costs		Deductions			Balance at end of period
Sales Returns Reserves
May 2, 2020	$	5,282	$	186,305	$	(186,524	)	$	5,063
April 27, 2019	$	5,229	$	197,799	$	(197,746	)	$	5,282
April 28, 2018	$	6,817	$	170,469	$	(172,057	)	$	5,229

All other schedules are omitted because the conditions requiring their filing do not exist, or because the required information is provided in the consolidated financial statements, including the notes thereto.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

May 02, 2020

Lessee, Leases [Policy Text Block]

Effective the first quarter of Fiscal 2020 (April 28, 2019), we adopted FASB ASC 842, Leases (Topic 842), which requires us to recognize lease assets and lease liabilities on the consolidated balance sheets for substantially all lease arrangements. We adopted this standard using a modified retrospective basis, with no restatement of prior periods. We elected the package of practical expedients permitted under the transition guidance for existing or expired contracts and did not reassess whether such contracts contain leases, the lease classification or the initial direct costs. Additionally, we utilized the historical lease term and did not utilize the practical expedient allowing the use of hindsight in determining the lease term and in assessing impairment of its right-of-use (“ROU”) assets. Additionally, we elected to apply the available practical expedient allowing for the election of an accounting policy by class of underlying asset to combine lease and non-lease components for all of our asset classes.

Our portfolio of leases consists of operating leases comprised of operations agreements which grant us the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. We do not have finance leases or short-term leases (i.e., those with a term of twelve months or less).

We recognize a ROU asset and lease liability in our consolidated balance sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability when it is reasonably certain that such options will be exercised. Our lease terms generally range from one year to fifteen years and a number of agreements contain minimum annual guarantees, many of which are adjusted at the start of each contract year based on the actual sales activity of the leased premises for the most recently completed contract year.

Payment terms are based on the fixed rates explicit in the lease, including minimum annual guarantees, and/or variable rates based on: i) a percentage of revenues or sales arising at the relevant premises ("variable commissions"), and/or ii) operating expenses, such as common area charges, real estate taxes and insurance. For contracts with fixed lease payments, including those with minimum annual guarantees, we recognize lease expense on a straight-line basis over the lease term or over the contract year in order to best reflect the pattern of usage of the underlying leased asset and our minimum obligations arising from these types of leases. Our lease agreements do not contain any material residual value guarantees, material restrictions or covenants.

We used our incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable. We utilized an estimated collateralized incremental borrowing rate as of the effective date or the commencement date of the lease, whichever is later.

Share-based Payment Arrangement [Policy Text Block]

We have reserved 10,409,345 shares of our common stock for future grants in accordance with the Barnes & Noble Education Inc. Equity Incentive Plan. Types of equity awards that can be granted under the Equity Incentive Plan include options, restricted stock (“RS”), restricted stock units (“RSU”), performance shares (“PS”) and performance share units (“PSU”). We have not granted options under the Equity Incentive Plan.

A RS award is an award of common stock that is subject to certain restrictions during a specified period. Restricted stock awards are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of unvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon (although payment may be deferred until the shares have vested) and are considered to be currently issued and outstanding. Restricted stock awards will have a minimum vesting period of one year.

A RSU is a grant valued in terms of our common stock, but no stock is issued at the time of grant. Each restricted stock unit may be redeemed for one share of our common stock once vested. Restricted stock units are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the units except in very limited circumstances and with the consent of the compensation committee. Shares associated with unvested restricted stock units have no voting rights but are entitled to receive dividends and other distributions thereon (although payment may be deferred until the units have vested). Restricted stock units generally vest over a period of three years, but will have a minimum vesting period of one year.

PS awards and PSU awards were granted to employees. Each PS and PSU may be redeemed for one share of our common stock once vested and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the PS or PSU awards except in very limited circumstances and with the consent of the compensation committee. Shares of unvested PSU awards have no voting rights but are entitled to receive dividends and other distributions thereon (although payment may be deferred until the shares or units, as the case may be, have vested). The PS and PSU awards will only vest based upon the achievement of pre-established performance goals related to Adjusted EBITDA, segment revenue, new business, and/or total shareholder return performance achieved over a period of time. The PS and PSU awards will vest based on company performance and/or market conditions during the subsequent two year period with one additional year of time-based vesting. The number of PS and PSU awards that will vest range from 0%-150% of the target award based on actual performance.

We recognize compensation expense for awards ratably over the requisite service period of the award, which is generally three years. We recognize compensation expense based on the number of awards expected to vest using an estimated average forfeiture rate. We calculate the fair value of stock-based awards based on the closing price on the date the award was granted. For those awards with market conditions, we have determined the grant date fair value using the Monte Carlo simulation model.

Basis of Presentation

Our consolidated financial statements reflect our consolidated financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). In the opinion of the Company’s management, the accompanying consolidated financial statements of the Company contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly its consolidated financial position and the results of its operations and cash flows for the periods reported.

Our fiscal year is comprised of 52 or 53 weeks, ending on the Saturday closest to the last day of April. The fiscal year periods for each of the last three fiscal years consisted of the 53 weeks ended May 2, 2020 (“Fiscal 2020”), 52 weeks ended April 27, 2019 (“Fiscal 2019”), and 52 weeks ended April 28, 2018 (“Fiscal 2018”).

For certain of our retail operations, sales are generally highest in the second and third fiscal quarters, when students purchase and rent textbooks and other course materials for the typical academic year, and lowest in the first and fourth fiscal quarters. Sales attributable to our wholesale business are generally highest in our first and third quarter, as it sells textbooks and other course materials for retail distribution. Our DSS sales and operating profit are realized relatively consistently throughout the year.

Our quarterly results also may fluctuate depending on the timing of the start of the various schools' semesters, as well as shifts in fiscal calendar dates. These shifts in timing may affect the comparability of our results across periods.

As discussed in Note 1. Organization, our business experienced an unprecedented and significant impact as a result of COVID-19 related campus store closures (the majority of which began in mid-March). While our campus stores were closed, we continued to serve institutions and students through our campus websites, providing free shipping on all orders and an expanded digital content offering to provide immediate access to course materials to students at our campuses that closed due to COVID-19. The impact of the store closures affects the comparability of our results of operations and cash flows.

Consolidation

The results of operations reflected in our consolidated financial statements are presented on a consolidated basis. All material intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements include acquisitions effective their respective acquisition date.


•	The consolidated financial statements for the 52 weeks ended April 27, 2019 include the financial results of PaperRater from the acquisition date, August 21, 2018, to April 27, 2019.


•	The consolidated financial statements for the 52 weeks ended April 28, 2018 include the financial results of Student Brands from the acquisition date, August 3, 2017, to April 28, 2018.

Use of Estimates

In preparing financial statements in conformity with GAAP, we are required to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

We consider all short-term, highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted Cash

Restricted cash of $766 and $755 is included in other noncurrent assets in the consolidated balance sheet as of May 2, 2020 and April 27, 2019, respectively. These funds are amounts held in trust for future distributions related to employee benefit plans.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Accounts Receivable

Receivables represent customer, private and public institutional and government billings (colleges, universities and other financial aid providers), credit/debit card receivables, advances for book buybacks, advertising and other receivables due within one year. Components of accounts receivables are as follows:



	As of
	5/2/2020		4/27/2019
Trade accounts	$	75,702	$	74,311
Advances for book buybacks	766		6,339
Credit/debit card receivables	2,177		4,173
Other receivables	12,206		13,423
Total receivables, net	$	90,851	$	98,246

Accounts receivable are presented on our consolidated balance sheets net of allowances. An allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable and assessments of collectability based on historical trends, the financial condition of our customers and an evaluation of economic conditions. We write-off uncollectible trade receivables once collection efforts have been exhausted and record bad debt expenses related to textbook rentals that are not returned and we are unable to successfully charge the customer. Allowance for doubtful accounts were $1,986, and $2,135 as of May 2, 2020 and April 27, 2019, respectively.

Merchandise Inventories

Merchandise inventories, which consist of finished goods, are stated at the lower of cost or market. Market value of our inventory, which is all purchased finished goods, is determined based on its estimated net realizable value, which is generally the selling price less normally predictable costs of disposal and transportation. Reserves for non-returnable inventory are based on our history of liquidating non-returnable inventory.

Cost is determined primarily by the retail inventory method for our Retail segment and last-in first out, or “LIFO”, method for our Wholesale segment. Our textbook inventories, for Retail and Wholesale, and trade book inventories are valued using the LIFO method and the related reserve was not material to the recorded amount of our inventories. There were no LIFO adjustments in Fiscal 2020, Fiscal 2019 and Fiscal 2018.

For our physical bookstores, we also estimate and accrue 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.

The Retail Segment fulfillment order is directed first to our wholesale business before other sources of inventory are utilized. The products that we sell originate from a wide variety of domestic and international vendors. After internal sourcing, the bookstore purchases textbooks from outside suppliers and publishers. The Retail Segments four largest suppliers, excluding the supply sourced from our Wholesale Segment, accounted for approximately 32.2% of our merchandise purchased during the 53 weeks ended May 2, 2020. For our Wholesale Segment, the four largest suppliers, excluding textbooks purchased from students at our Retail Segment's bookstores, accounted for approximately 33.9% of merchandise purchases during the 53 weeks ended May 2, 2020.

Textbook Rentals Inventories

Textbook Rental Inventories

Physical textbooks out on rent are categorized as textbook rental inventories. At the time a rental transaction is consummated, the book is removed from merchandise inventories and moved to textbook rental inventories at cost. The cost of the book is amortized down to its estimated residual value over the rental period. The related amortization expense is included in cost of goods sold. At the end of the rental period, upon return, the book is removed from textbook rental inventories and recorded in merchandise inventories at its amortized cost.

Property, Plant and Equipment, Planned Major Maintenance Activities, Policy [Policy Text Block]

Property and Equipment

Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over estimated useful lives. Maintenance and repairs are expensed as incurred, however major maintenance and remodeling costs are capitalized if they extend the useful life of the asset. We had $42,550, $44,550, and $46,531 of depreciation expense for the 53 weeks ended May 2, 2020, 52 weeks ended April 27, 2019, and 52 weeks ended April 28, 2018, respectively.

Content development costs are primarily related to bartleby.com textbook solutions which was launched in Fiscal 2019. Content amortization is computed using the straight-line method over estimated useful lives. Amortization of content development costs is recorded to cost of goods sold. We had $4,082, $1,096, and $0 of content amortization expense for the 53 weeks ended May 2, 2020, 52 weeks ended April 27, 2019, and 52 weeks ended April 28, 2018, respectively.

Components of property and equipment are as follows:



		As of
	Useful Life	May 2, 2020		April 27, 2019
Property and equipment:
Leasehold improvements	(a)	$	141,602	$	148,015
Machinery, equipment and display fixtures	3 - 5	246,447		240,171
Computer hardware and capitalized software costs	(b)	145,764		136,267
Office furniture and other	2 - 7	62,209		59,327
Content development costs	3 - 5	16,729		11,593
Construction in progress		3,878		5,499
Total property and equipment		616,629		600,872
Less accumulated depreciation and amortization		518,890		491,095
Total property and equipment, net		$	97,739	$	109,777


(a)	Leasehold improvements are capitalized and depreciated over the shorter of the lease term or the useful life of the improvements, ranging from one to 15 years.


(b)	System costs are capitalized and amortized over their estimated useful lives, from the date the systems become operational. Purchased software is generally amortized over a period of between 2 - 5 years.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Other Long-Lived Assets

Our other long-lived assets include property and equipment and amortizable intangibles. We had $175,125 and $194,978 of amortizable intangible assets, net of amortization, as of May 2, 2020 and April 27, 2019, respectively. These amortizable intangible assets relate primarily to our customer and bookstore relationships with our colleges and university clients, and technology acquired. For additional information related to amortizable intangibles, see Part II - Item 8. Financial Statements and Supplementary Data - Note 11. Supplementary Information - Intangible Assets.

We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and consider market participants in accordance with Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets.

In the first quarter of Fiscal 2020, we recorded an impairment loss (non-cash) of $433 in the Retail segment related to net capitalized development costs for a project which are not recoverable.

During the fourth quarter of Fiscal 2020, in conjunction with COVID-19 related campus store closures, we evaluated certain of our long-lived assets associated with our Retail and Wholesale segments for impairment. We evaluated the long-lived assets of these reporting units for impairment at the lowest asset group level for which individual cash flows can be identified. When evaluating long-lived assets for potential impairment, we first compared the carrying amount of the asset group to the estimated future undiscounted cash flows. The impairment loss calculation compares the carrying amount of the assets to the fair value based on estimated discounted future cash flows. If required, an impairment loss is recorded for that portion of the asset’s carrying value in excess of fair value. Based on the results of the tests, for the Wholesale segment, an impairment loss calculation was not required as the estimated future undiscounted cash flows of the identified asset groups exceeded the carrying amount of the respective asset group. Based on the results of the tests, for the Retail segment, we recognized an impairment loss of $587 related to store-level assets in restructuring and other charges. These long-lived assets were not recoverable and had a de minimis fair value, as determined using an income approach (Level 3 input), resulting in a non-cash impairment charge for the full carrying value of those long-lived assets.

During the fourth quarter of Fiscal 2019, in conjunction with the change to reporting segments and the interim goodwill impairment test noted below, as well as operational changes in certain long-lived asset groups, we evaluated certain of our long-lived assets for impairment and recognized an impairment loss of $8,466, comprised of $8,138 of intangible assets, primarily acquired technology, and $328 of property and equipment related to our LoudCloud and Promoversity operations. These long-lived assets were not recoverable and had a de minimis fair value, as determined using the relief-from-royalty and income approaches (Level 3 input), resulting in a non-cash impairment charge for the full carrying value of those long-lived assets. See Part II - Item 8. Financial Statements and Supplementary Data - Note 11. Supplementary Information - Intangible Assets.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]