Barnes and Noble 2012 Annual Report Download - page 20

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Gross Margin
52 weeks ended
Dollars in thousands
April 30,
2011 % Sales
May 1,
2010 % Sales
B&N Retail $ 1,427,010 29.0% $ 1,561,578 31.6%
B&N College 383,468 21.6% 176,763 21.2%
NOOK (17,625) (6.0)% (61,596) (231.2)%
Total Gross Margin $ 1,792,853 25.6% $ 1,676,745 28.9%
The Company’s consolidated gross margin increased .
million, or ., to . billion in fi scal  from .
billion in fi scal . This increase was due to the matters
discussed above.
Selling and Administrative Expenses
52 weeks ended
Dollars in thousands
April 30,
2011 % Sales May 1, 2010 % Sales
B&N Retail $ 1,167,944 23.7% $ 1,187,337 24.0%
B&N College 270,022 15.2% 155,613 18.7%
NOOK 191,499 65.2% 52,775 198.1%
Total Selling and
Administrative
Expenses $ 1,629,465 23.3% $ 1,395,725 24.0%
Selling and administrative expenses increased .
million, or ., to . billion in fi scal  from .
billion in fi scal . Selling and administrative expenses
decreased as a percentage of sales to . in fi scal 
from . in fi scal . The decrease by segment is as
follows:
• B&N Retail selling and administrative expenses
decreased as a percentage of sales to . in fi scal
 from . in fi scal  due to improved store
productivity.
• B&N College selling and administrative expenses,
included since the Acquisition on September , ,
decreased as a percentage of sales to . in fi scal 
from . in fi scal . This decrease was primarily
attributable to the inclusion of the Fall back to school rush
period in fi scal , resulting in greater leverage on sales.
The Acquisition occurred after the Fall rush in .
• NOOK selling and administrative expenses decreased as
a percentage of sales to . in fi scal  from .
in fi scal . This decrease was primarily attributable to
leveraging on increased sales.
Depreciation and Amortization
52 weeks ended
Dollars in thousands
April 30,
2011 % Sales
May 1,
2010 % Sales
B&N Retail $ 164,934 3.3% $ 170,777 3.5%
B&N College 43,148 2.4% 24,863 3.0%
NOOK 20,565 7.0% 12,134 45.6%
Total Depreciation and
Amortization $ 228,647 3.3% $ 207,774 3.6%
Depreciation and amortization increased . million, or
., to . million in fi scal  from . million
in fi scal . This increase was primarily attributable to
the inclusion of the B&N College depreciation and amorti-
zation since the Acquisition on September , , which
increased . million to . million in fi scal  from
. million during fi scal .
Operating Profi t (Loss)
52 weeks ended
Dollars in thousands
April 30,
2011 % Sales
May 1,
2010 % Sales
B&N Retail $ 94,132 1.9% $ 203,464 4.1%
B&N College 70,298 4.0% (3,713) (0.4)%
NOOK (229,689) (78.2)% (126,505) (474.9)%
Total Operating Profi t (Loss) $ (65,259) (0.9)% $ 73,246 1.3%
The Company’s consolidated operating profi t decreased
. million, or ., to an operating loss of .
million in fi scal  from an operating profi t of .
million in fi scal . This decrease was due to the matters
discussed above.
Interest Expense, Net and Amortization of Deferred
Financing Fees
52 weeks ended
Dollars in thousands April 30, 2011 May 1, 2010 % of Change
Interest Expense, Net and
Amortization of Deferred
Financing Fees $ 57,350 $ 28,237 103.1%
Net interest expense and amortization of deferred fi nanc-
ing fees increased . million, to . million in fi scal
 from . million in fi scal . This increase in
interest expense was primarily due to interest expense
related to debt from the Acquisition of B&N College,
investments made in digital and a . million write-off
of deferred fi nancing fees related to the amendment of the
Company’s credit facility.
18 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued