Barnes and Noble 2015 Annual Report Download - page 12

The number of shares of Company Common Stock to be
issued was determined based on a conversion ratio of
. shares of Company Common Stock per share of
Preferred Stock converted, which is the conversion rate
in the Certificate of the Designations with respect to the
Preferred Stock dated as of August , .
SEGMENTS
The Company identifies its operating segments based on
the way the business is managed (focusing on the financial
information distributed) and the manner in which the chief
operating decision maker interacts with other members of
management. The Company’s three operating segments are
B&N Retail, B&N College and NOOK.
B&N Retail
This segment includes  bookstores as of May , ,
primarily under the Barnes & Noble Booksellers trade
name. These stores generally offer a dedicated NOOK® area,
a comprehensive trade book title base, a café, and depart-
ments dedicated to Juvenile, Toys & Games, DVDs, Music,
Gift, Magazine and Bargain products. The stores also offer
a calendar of ongoing events, including author appear-
ances and children’s activities. The B&N Retail segment
also includes the Company’s eCommerce website, barne-
sandnoble.com, and its publishing operation, Sterling
Publishing.
Barnes & Noble stores range in size from , to ,
square feet depending upon market size, with an overall
average store size of , square feet. In fiscal ,
the Company reduced the Barnes & Noble store base by
approximately , square feet, bringing the total
square footage to . million square feet, a net reduction
of . from fiscal . The Company did not open any
new Barnes & Noble stores in fiscal . Each Barnes &
Noble store features an authoritative selection of books,
ranging from , to , titles. The comprehen-
sive title selection is diverse and reflects local interests.
Bestsellers typically represent between approximately 
and  of Barnes & Noble store sales. Product Master, the
Company’s proprietary inventory management database,
has approximately . million titles. By enhancing the
Company’s existing merchandise replenishment systems,
Product Master allows the Company to achieve high in-
stock positions and productivity at the store level through
efficiencies in receiving, cashiering and returns process-
ing. Complementing this extensive on-site selection,
all Barnes & Noble stores provide customers with access
to the millions of books available to online shoppers at
barnesandnoble.com while offering an option to have the
book sent to the store or shipped directly to the customer.
At the center of this eCommerce program is the Company’s
website, barnesandnoble.com.
Sterling Publishing
Sterling Publishing is a leading publisher of non-fiction
trade titles. Founded in , Sterling publishes a wide
range of non-fiction and illustrated books and kits across a
variety of imprints, in categories such as health & wellness,
music & popular culture, food & wine, crafts & photogra-
phy, puzzles & games and history & current affairs, as well
as a large children’s line. Sterling, with a solid backlist
and robust value publishing program, has a title base of
approximately , eBooks and print books. In addition,
Sterling also distributes approximately  titles on behalf
of client publishers.
B&N College
B&N College is one of the largest contract operators of
bookstores on college and university campuses across the
United States. As of May , , B&N College operated 
stores nationwide. These stores are operated under 
contracts, which can cover multiple stores and include over
 million students and faculty. B&N College’s customer
base, which is mainly comprised of students and faculty,
can purchase various items from their campus stores,
including textbooks, textbook rentals and course-related
materials, emblematic apparel and gifts, trade books, com-
puter products, NOOK® products and related accessories,
school and dorm supplies, convenience and café items.
B&N College provides extensive textbook rental options to
its customers and has expanded its digital textbooks and
other course materials through a proprietary digital plat-
form (Yuzu™). A significant number of textbooks are now
available in multiple formats: new, used, rental and digital
(rental and ownership), resulting in improved choice and
substantial student savings.
B&N College operates  traditional college bookstores
and  academic superstores, which are generally larger
in size, offer cafés and provide a sense of community that
engages the surrounding campus and local communities in
college activities and culture. The traditional bookstores
range in size up to , square feet. The academic super-
stores range in size from , to , square feet.
10 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued