Barnes and Noble 2015 Annual Report Download - page 19

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tB&N College selling and administrative expenses
increased as a percentage of sales to . in fiscal
 from . in fiscal . This increase included
continued investments in Yuzu™, which increased
. million, or  basis points, to . million in
fiscal , as compared to . million in fiscal .
Excluding Yuzu™, B&N College’s selling and administra-
tive expenses increased as a percentage of sales by 
basis points, due primarily to higher store payroll and
operating expenses, including benefits and marketing,
which increased selling and administrative expenses as
a percentage of sales by  basis points, planned infra-
structure costs to support business growth increased
selling and administrative expenses as a percentage of
sales by  basis points and separation-related costs
increased selling and administrative expenses as a
percentage of sales by  basis points.
tNOOK selling and administrative expenses increased as
a percentage of sales to . in fiscal  from .
in fiscal . The prior year included a . million
asset impairment resulting from the relocation of the
Palo Alto, CA facility. Excluding the impairment charge,
SG&A expenses as a percentage of sales increased on
sales deleverage. On a dollar basis excluding this charge,
expenses declined . million primarily on cost ratio-
nalization, including compensation, legal and consulting
costs of approximately . million, lower advertising
costs of . million and lower variable expenses com-
mensurate with the sales decline.
Depreciation and Amortization
52 Weeks Ended 53 Weeks Ended
Dollars in thousands
May 2,
2015 % Sales
May 3,
2014 % Sales
B&N Retail $ 104,373 2.5% $ 125,991 2.9%
B&N College 50,509 2.8% 48,014 2.7%
NOOK 39,292 20.8% 42,802 12.7%
Total Depreciation and
Amortization $ 194,174 3.2% $ 216,807 3.4%
Depreciation and amortization decreased . million, or
., to . million in fiscal  from . million
in fiscal . This decrease was primarily attributable to
fully depreciated assets and store closings at B&N Retail,
partially offset by additional capital expenditures.
Operating Profit (Loss)
52 Weeks Ended 53 Weeks Ended
Dollars in thousands
May 2,
2015 % Sales
May 3,
2014 % Sales
B&N Retail $ 218,126 5.3% $ 228,062 5.3%
B&N College 40,611 2.3% 66,536 3.8%
NOOK (125,564) (66.5)% (260,406) (77.0)%
Total Operating Profit $ 133,173 2.2% $ 34,192 0.5%
The Company’s consolidated operating profit increased
. million, or ., to an operating profit of .
million in fiscal  from an operating profit of .
million in fiscal . This increase was due to the matters
discussed above.
Interest Expense, Net and Amortization of Deferred
Financing Fees
52 Weeks
Ended
53 Weeks
Ended
Dollars in thousands
May 2,
2015
May 3,
2014 % of Change
Interest Expense, Net and
Amortization of Deferred
Financing Fees $ 17,890 $ 29,507 (39.4)%
Net interest expense and amortization of deferred financ-
ing fees decreased . million, or ., to . million
in fiscal  from . million in fiscal . This
decrease was due to lower interest related to the repayment
of the Junior Seller Note in September , lower aver-
age borrowings and the terminated Microsoft commercial
agreement.
2015 Annual Report 17