Barnes and Noble 2014 Annual Report Download - page 55

negotiated transactions from time to time and in such
amounts as management deems appropriate. As of May ,
 the Company has repurchased ,, shares at a
cost of approximately ,, under its stock repurchase
programs. The repurchased shares are held in treasury.
16. COMMITMENTS AND CONTINGENCIES
The Company leases retail stores, warehouse facilities,
office space and equipment. Substantially all of the B&N
Retail stores are leased under noncancelable agreements,
which expire at various dates through  with various
renewal options for additional periods. The agreements,
which have been classified as operating leases, generally
provide for both minimum and percentage rentals and
require the Company to pay insurance, taxes and other
maintenance costs. Percentage rentals are based on sales
performance in excess of specified minimums at various
stores.
B&N College’s contracts are typically for five to ten years,
although some extend beyond ten years. Many contracts
have a  to  day cancellation right by B&N College, or
by the college or university, without penalty.
The Company leases office space in New York, New York
and Palo Alto, California for its NOOK operations (Note ).
Rental expense under operating leases is as follows:
Fiscal 2014 Fiscal 2013 Fiscal 2012
Minimum rentals $ 424,952 413,751 382,386
Percentage rentals 98,467 101,960 107,127
$ 523,419 515,711 489,513
Future minimum annual rentals, excluding percentage
rentals, required under B&N Retail leases that had initial,
noncancelable lease terms greater than one year, under
B&N College and NOOK leases as of May ,  are:
Fiscal Year a
2015 $ 421,268
2016 374,803
2017 328,928
2018 258,375
2019 193,103
After 2019 364,624
$ 1,941,101
a Includes B&N College capital lease obligations of $232, $232, $39, $0, $0
and $0 for 2015, 2016, 2017, 2018, 2019 and after 2019, respectively.
The Company provides for minimum rent expense over the
lease terms (including the build-out period) on a straight-
line basis. The excess of such rent expense over actual lease
payments (net of tenant allowances) is reflected in other
long-term liabilities and accrued liabilities in the accom-
panying balance sheets.
On June , , the Company exercised its purchase
option under a lease on one of its distribution facilities
located in South Brunswick, New Jersey from the New
Jersey Economic Development Authority. Under the terms
of the lease expiring in June , the Company purchased
the distribution facility and equipment for approxi-
mately ,. Subsequently, on December , , the
Company sold the distribution facility in South Brunswick,
New Jersey for ,, which resulted in a loss of ,.
Purchase obligations, which includes hardware and
software maintenance contracts and inventory purchase
commitments, as of May ,  are as follows:
Less Than 1 Year $ 205,281
1-3 Years 72,975
3-5 Years 273
More Than 5 Years —
Total $ 278,529
17. SEGMENT REPORTING
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. The  Barnes & Noble stores generally offer a
dedicated NOOK® area, a comprehensive trade book title
base, a café, and departments dedicated to Juvenile, Toys &
Games, DVDs, Music, Gift, Magazine and Bargain products.
The stores also offer a calendar of ongoing events, includ-
ing author appearances and children’s activities. The B&N
Retail segment also includes the Company’s eCommerce
website, barnesandnoble.com, and its publishing opera-
tion, Sterling Publishing.
B&N College
This segment includes  stores as of May , , that are
primarily school-owned stores operated under contracts
by B&N College and include sales of digital content within
the higher education marketplace through Yuzu™. The 
B&N College stores generally offer new, used, rental and
2014 Annual Report 53