2018 Q2 Form 10-K Financial Statement

#000163411718000014 Filed on June 20, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2 2017 Q1
Revenue $357.7M $342.8M $521.6M
YoY Change 4.32% 16.31% 0.62%
Cost Of Revenue $228.2M $218.6M $405.7M
YoY Change 4.39% 16.65% 1.99%
Gross Profit $128.3M $123.0M $116.2M
YoY Change 4.32% 16.01% -3.64%
Gross Profit Margin 35.88% 35.89% 22.29%
Selling, General & Admin $107.2M $98.60M $97.11M
YoY Change 8.72% 13.33% 0.68%
% of Gross Profit 83.53% 80.15% 83.54%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $16.90M $14.20M $13.20M
YoY Change 19.01% 6.77% 0.76%
% of Gross Profit 13.17% 11.54% 11.35%
Operating Expenses $124.0M $112.9M $97.11M
YoY Change 9.83% 12.45% 0.68%
Operating Profit $4.334M $10.13M $5.198M
YoY Change -57.2% 79.39% -313.21%
Interest Expense -$2.500M -$1.500M -$700.0K
YoY Change 66.67% 150.0% 0.0%
% of Operating Profit -57.68% -14.81% -13.47%
Other Income/Expense, Net
YoY Change
Pretax Income $2.700M $2.900M $4.519M
YoY Change -6.9% -160.42% -243.51%
Income Tax -$15.00M $2.600M $758.0K
% Of Pretax Income -555.56% 89.66% 16.77%
Net Earnings $17.06M $227.0K $3.761M
YoY Change 7414.1% -108.12% -204.39%
Net Earnings / Revenue 4.77% 0.07% 0.72%
Basic Earnings Per Share $0.36 $0.00 $0.08
Diluted Earnings Per Share $0.36 $0.00 $0.08
COMMON SHARES
Basic Shares Outstanding 46.92M shares 46.52M shares 46.28M shares
Diluted Shares Outstanding 46.84M shares

Balance Sheet

Concept 2018 Q2 2017 Q2 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $16.10M $19.00M $132.1M
YoY Change -15.26% -33.57% 22.09%
Cash & Equivalents $16.13M $19.00M $132.1M
Short-Term Investments
Other Short-Term Assets $9.200M $10.70M $8.100M
YoY Change -14.02% 64.62% 39.66%
Inventory $443.6M $434.1M $494.0M
Prepaid Expenses
Receivables $100.1M $58.50M $178.8M
Other Receivables $0.00 $27.50M $0.00
Total Short-Term Assets $619.4M $602.6M $880.4M
YoY Change 2.78% 34.98% -2.75%
LONG-TERM ASSETS
Property, Plant & Equipment $111.3M $116.6M $107.3M
YoY Change -4.57% 4.88% -5.49%
Goodwill $49.28M $329.5M $281.3M
YoY Change -85.04% 17.29% 2.65%
Intangibles $219.1M $209.9M $191.6M
YoY Change 4.4% 5.12% 0.57%
Long-Term Investments
YoY Change
Other Assets $40.14M $41.24M $39.23M
YoY Change -2.65% 23.2% 16.64%
Total Long-Term Assets $419.8M $697.2M $619.5M
YoY Change -39.78% 11.51% 1.26%
TOTAL ASSETS
Total Short-Term Assets $619.4M $602.6M $880.4M
Total Long-Term Assets $419.8M $697.2M $619.5M
Total Assets $1.039B $1.300B $1.500B
YoY Change -20.05% 21.29% -1.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $187.9M $192.7M $480.4M
YoY Change -2.51% 26.66% -1.76%
Accrued Expenses $125.6M $120.5M $207.7M
YoY Change 4.21% 13.79% 4.04%
Deferred Revenue
YoY Change
Short-Term Debt $100.0M $100.0M $0.00
YoY Change 0.0%
Long-Term Debt Due $100.0M $100.0M
YoY Change 0.0%
Total Short-Term Liabilities $413.5M $413.2M $688.1M
YoY Change 0.06% 60.13% -0.08%
LONG-TERM LIABILITIES
Long-Term Debt $96.40M $59.60M $0.00
YoY Change 61.74%
Other Long-Term Liabilities $59.28M $96.43M $76.20M
YoY Change -38.53% 27.93% 8.95%
Total Long-Term Liabilities $59.28M $96.43M $76.20M
YoY Change -38.53% 27.93% 8.95%
TOTAL LIABILITIES
Total Short-Term Liabilities $413.5M $413.2M $688.1M
Total Long-Term Liabilities $59.28M $96.43M $76.20M
Total Liabilities $571.2M $586.1M $787.0M
YoY Change -2.54% 61.33% -1.43%
SHAREHOLDERS EQUITY
Retained Earnings -$220.2M $32.36M $32.14M
YoY Change -780.42% 19.85%
Common Stock $717.8M $709.4M $707.2M
YoY Change 1.19% 1.34% 1.3%
Preferred Stock
YoY Change
Treasury Stock (at cost) $29.66M $28.02M $26.47M
YoY Change 5.85% 50.52% 184.75%
Treasury Stock Shares 3.115M shares 2.855M shares 2.696M shares
Shareholders Equity $468.0M $713.7M $712.9M
YoY Change
Total Liabilities & Shareholders Equity $1.039B $1.300B $1.500B
YoY Change -20.05% 21.29% -1.13%

Cashflow Statement

Concept 2018 Q2 2017 Q2 2017 Q1
OPERATING ACTIVITIES
Net Income $17.06M $227.0K $3.761M
YoY Change 7414.1% -108.12% -204.39%
Depreciation, Depletion And Amortization $16.90M $14.20M $13.20M
YoY Change 19.01% 6.77% 0.76%
Cash From Operating Activities -$80.40M -$77.00M -$34.30M
YoY Change 4.42% 97.44% -184.48%
INVESTING ACTIVITIES
Capital Expenditures -$12.70M -$8.200M -$9.000M
YoY Change 54.88% -37.4% -31.82%
Acquisitions
YoY Change
Other Investing Activities $1.500M -$182.6M -$1.200M
YoY Change -100.82% 1048.43% -192.31%
Cash From Investing Activities -$11.20M -$190.7M -$10.20M
YoY Change -94.13% 559.86% -13.56%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 83.40M 155.2M 0.000
YoY Change -46.26% -1768.82% -100.0%
NET CHANGE
Cash From Operating Activities -80.40M -77.00M -34.30M
Cash From Investing Activities -11.20M -190.7M -10.20M
Cash From Financing Activities 83.40M 155.2M 0.000
Net Change In Cash -8.200M -112.5M -44.50M
YoY Change -92.71% 45.73% -328.21%
FREE CASH FLOW
Cash From Operating Activities -$80.40M -$77.00M -$34.30M
Capital Expenditures -$12.70M -$8.200M -$9.000M
Free Cash Flow -$67.70M -$68.80M -$25.30M
YoY Change -1.6% 165.64% -147.03%

Facts In Submission

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CY2017Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
1780000 USD
CY2018Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
1374000 USD
CY2017Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccruals
13047000 USD
CY2018Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccruals
9375000 USD
CY2017Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Deferred Rent
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsDeferredRent
1826000 USD
CY2018Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Deferred Rent
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsDeferredRent
1095000 USD
CY2017Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Self Insurance
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsSelfInsurance
881000 USD
CY2018Q2 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Self Insurance
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsSelfInsurance
474000 USD
CY2017Q2 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1392000 USD
CY2018Q2 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
932000 USD
CY2017Q2 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets
DeferredTaxLiabilitiesGoodwillAndIntangibleAssets
68938000 USD
CY2018Q2 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets
DeferredTaxLiabilitiesGoodwillAndIntangibleAssets
44066000 USD
CY2017Q2 us-gaap Deferred Tax Liabilities Noncurrent
DeferredTaxLiabilitiesNoncurrent
16871000 USD
CY2018Q2 us-gaap Deferred Tax Liabilities Noncurrent
DeferredTaxLiabilitiesNoncurrent
2106000 USD
CY2016 us-gaap Defined Contribution Plan Cost Recognized
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4375000 USD
CY2017 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
4828000 USD
CY2018 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
7196000 USD
CY2016 us-gaap Depreciation
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42213000 USD
CY2017 us-gaap Depreciation
Depreciation
41224000 USD
CY2018 us-gaap Depreciation
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46531000 USD
CY2016 us-gaap Depreciation And Amortization
DepreciationAndAmortization
52690000 USD
CY2017 us-gaap Depreciation And Amortization
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53318000 USD
CY2018 us-gaap Depreciation And Amortization
DepreciationAndAmortization
65586000 USD
CY2016 us-gaap Earnings Per Share Basic
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0
CY2016 us-gaap Earnings Per Share Basic
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0.00
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-0.60
CY2016Q4 us-gaap Earnings Per Share Basic
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0.63
CY2017Q1 us-gaap Earnings Per Share Basic
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0.08
CY2017Q2 us-gaap Earnings Per Share Basic
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0.00
CY2017 us-gaap Earnings Per Share Basic
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0.12
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-0.75
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1.04
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-6.04
CY2018Q2 us-gaap Earnings Per Share Basic
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0.36
CY2018 us-gaap Earnings Per Share Basic
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-5.40
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0.00
CY2016 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0
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-0.60
CY2016Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.63
CY2017Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.08
CY2017Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.00
CY2017 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.11
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EarningsPerShareDiluted
-0.75
CY2017Q4 us-gaap Earnings Per Share Diluted
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1.03
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-6.04
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0.36
CY2018 us-gaap Earnings Per Share Diluted
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-5.40
CY2016 us-gaap Effective Income Tax Rate Continuing Operations
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0.969
CY2017 us-gaap Effective Income Tax Rate Continuing Operations
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0.469
CY2018 us-gaap Effective Income Tax Rate Continuing Operations
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0.075
CY2016 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.350
CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.350
us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.339
CY2018Q2 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.210
CY2016 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
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0.000
CY2016 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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0.506
CY2017 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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0.000
CY2018 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
0.000
CY2017 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.000
CY2018 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.075
CY2016 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense
EffectiveIncomeTaxRateReconciliationNondeductibleExpense
0.000
CY2017 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense
EffectiveIncomeTaxRateReconciliationNondeductibleExpense
0.000
CY2018 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense
EffectiveIncomeTaxRateReconciliationNondeductibleExpense
-0.342
CY2016 us-gaap Effective Income Tax Rate Reconciliation Other Reconciling Items Percent
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0.008
CY2017 us-gaap Effective Income Tax Rate Reconciliation Other Reconciling Items Percent
EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent
-0.023
CY2018 us-gaap Effective Income Tax Rate Reconciliation Other Reconciling Items Percent
EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent
0.009
CY2016 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
-0.152
CY2017 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
-0.058
CY2018 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
-0.003
CY2016 us-gaap Effective Income Tax Rate Reconciliation Tax Contingencies Other
EffectiveIncomeTaxRateReconciliationTaxContingenciesOther
0.311
CY2017 us-gaap Effective Income Tax Rate Reconciliation Tax Contingencies Other
EffectiveIncomeTaxRateReconciliationTaxContingenciesOther
0.255
CY2018 us-gaap Effective Income Tax Rate Reconciliation Tax Contingencies Other
EffectiveIncomeTaxRateReconciliationTaxContingenciesOther
-0.007
CY2016 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
EffectiveIncomeTaxRateReconciliationTaxCredits
0.054
CY2017 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
EffectiveIncomeTaxRateReconciliationTaxCredits
0.055
CY2018 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
EffectiveIncomeTaxRateReconciliationTaxCredits
-0.002
CY2018Q2 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
12284000 USD
CY2018 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P1Y10M14D
CY2017Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
79687000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
98743000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive
128887000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
20731000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
14047000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
17449000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
18098000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
19917000 USD
CY2017Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
289572000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
317872000 USD
CY2018 us-gaap Foreign Income Tax Expense Benefit Continuing Operations
ForeignIncomeTaxExpenseBenefitContinuingOperations
200000 USD
CY2016Q2 us-gaap Goodwill
Goodwill
280911000 USD
CY2017Q2 us-gaap Goodwill
Goodwill
329467000 USD
CY2018Q2 us-gaap Goodwill
Goodwill
49282000 USD
CY2017 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
48556000 USD
CY2018 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
313130000 USD
CY2018 us-gaap Goodwill Purchase Accounting Adjustments
GoodwillPurchaseAccountingAdjustments
1163000 USD
CY2016 us-gaap Gross Profit
GrossProfit
454699000 USD
CY2016Q3 us-gaap Gross Profit
GrossProfit
47833000 USD
CY2016Q4 us-gaap Gross Profit
GrossProfit
171954000 USD
CY2017Q1 us-gaap Gross Profit
GrossProfit
116249000 USD
CY2017Q2 us-gaap Gross Profit
GrossProfit
123025000 USD
CY2017 us-gaap Gross Profit
GrossProfit
459061000 USD
CY2017Q3 us-gaap Gross Profit
GrossProfit
65200000 USD
CY2017Q4 us-gaap Gross Profit
GrossProfit
216700000 USD
CY2018Q1 us-gaap Gross Profit
GrossProfit
146999000 USD
CY2018Q2 us-gaap Gross Profit
GrossProfit
128334000 USD
CY2018 us-gaap Gross Profit
GrossProfit
557233000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
2751000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
10091000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-273009000 USD
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2667000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
4730000 USD
CY2018 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-20443000 USD
CY2018 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability
20425000 USD
CY2016 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
13934000 USD
CY2017 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
1473000 USD
CY2018 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
25549000 USD
CY2016 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
9147000 USD
CY2017 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
3328000 USD
CY2018 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-3715000 USD
CY2016 us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
11868000 USD
CY2017 us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
11961000 USD
CY2018 us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
14765000 USD
CY2016 us-gaap Increase Decrease In Inventories
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15323000 USD
CY2017 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-6197000 USD
CY2018 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
12105000 USD
CY2016 us-gaap Increase Decrease In Other Current Assets And Liabilities Net
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-17140000 USD
CY2017 us-gaap Increase Decrease In Other Current Assets And Liabilities Net
IncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet
3125000 USD
CY2018 us-gaap Increase Decrease In Other Current Assets And Liabilities Net
IncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet
24481000 USD
CY2016 us-gaap Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
-5892000 USD
CY2017 us-gaap Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
-14235000 USD
CY2018 us-gaap Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
36823000 USD
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
2206000 USD
CY2017 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
2093000 USD
CY2018 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
38000 USD
CY2016 us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
-25732000 USD
CY2017 us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
6407000 USD
CY2018 us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
13670000 USD
CY2017Q2 us-gaap Intangible Assets Net Excluding Goodwill
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209885000 USD
CY2018Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
219129000 USD
CY2016 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-1872000 USD
CY2017 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-3464000 USD
CY2018 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-10306000 USD
CY2016 us-gaap Interest Paid
InterestPaid
1145000 USD
CY2017 us-gaap Interest Paid
InterestPaid
2082000 USD
CY2018 us-gaap Interest Paid
InterestPaid
8035000 USD
CY2018 us-gaap Inventory Lifo Reserve Effect On Income Net
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40425000 USD
CY2018Q2 us-gaap Inventory Net
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446169000 USD
CY2016Q2 us-gaap Investments Fair Value Disclosure
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0 USD
CY2017Q2 us-gaap Inventory Net
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434064000 USD
CY2017Q2 us-gaap Letters Of Credit Outstanding Amount
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4298000 USD
CY2018Q2 us-gaap Letters Of Credit Outstanding Amount
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4759000 USD
CY2017Q2 us-gaap Liabilities And Stockholders Equity
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1299832000 USD
CY2017Q2 us-gaap Liabilities
Liabilities
586124000 USD
CY2018Q2 us-gaap Liabilities
Liabilities
571248000 USD
CY2018Q2 us-gaap Liabilities And Stockholders Equity
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1039211000 USD
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413220000 USD
CY2018Q2 us-gaap Liabilities Current
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413465000 USD
CY2018Q2 us-gaap Line Of Credit Facility Fair Value Of Amount Outstanding
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196400000 USD
CY2017Q2 us-gaap Long Term Line Of Credit
LongTermLineOfCredit
59600000 USD
CY2018Q2 us-gaap Long Term Line Of Credit
LongTermLineOfCredit
96400000 USD
CY2016 us-gaap Marketing And Advertising Expense
MarketingAndAdvertisingExpense
8614000 USD
CY2017 us-gaap Marketing And Advertising Expense
MarketingAndAdvertisingExpense
7437000 USD
CY2018 us-gaap Marketing And Advertising Expense
MarketingAndAdvertisingExpense
10635000 USD
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-28289000 USD
CY2017 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
147283000 USD
CY2018 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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35162000 USD
CY2016 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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-68744000 USD
CY2017 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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-224438000 USD
CY2018 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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-100032000 USD
CY2016 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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83083000 USD
CY2017 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
67986000 USD
CY2018 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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60042000 USD
CY2016 us-gaap Net Income Loss
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84000 USD
CY2016Q3 us-gaap Net Income Loss
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-27916000 USD
CY2016Q4 us-gaap Net Income Loss
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29289000 USD
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
3761000 USD
CY2017Q2 us-gaap Net Income Loss
NetIncomeLoss
227000 USD
CY2017 us-gaap Net Income Loss
NetIncomeLoss
5361000 USD
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
-34783000 USD
CY2017Q4 us-gaap Net Income Loss
NetIncomeLoss
48395000 USD
CY2018Q1 us-gaap Net Income Loss
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-283235000 USD
CY2018Q2 us-gaap Net Income Loss
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17057000 USD
CY2018 us-gaap Net Income Loss
NetIncomeLoss
-252566000 USD
CY2016 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
84000 USD
CY2017 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
5358000 USD
CY2018 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-252566000 USD
CY2016 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
84000 USD
CY2017 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
5358000 USD
CY2018 us-gaap Net Income Loss Available To Common Stockholders Diluted
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-252566000 USD
CY2017 us-gaap Number Of Reportable Segments
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2
CY2018 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
3 segment
CY2018Q2 us-gaap Number Of Stores
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1444 Store
CY2016 us-gaap Operating Income Loss
OperatingIncomeLoss
4623000 USD
CY2017 us-gaap Operating Income Loss
OperatingIncomeLoss
13555000 USD
CY2018 us-gaap Operating Income Loss
OperatingIncomeLoss
-262703000 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
806361 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
124379 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
105034 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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113419 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
130794 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
192741 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Receivable Current
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139994 USD
CY2016 us-gaap Operating Leases Rent Expense Contingent Rentals
OperatingLeasesRentExpenseContingentRentals
101552 USD
CY2017 us-gaap Operating Leases Rent Expense Contingent Rentals
OperatingLeasesRentExpenseContingentRentals
87843 USD
CY2018 us-gaap Operating Leases Rent Expense Contingent Rentals
OperatingLeasesRentExpenseContingentRentals
80630 USD
CY2016 us-gaap Operating Leases Rent Expense Minimum Rentals
OperatingLeasesRentExpenseMinimumRentals
140743 USD
CY2017 us-gaap Operating Leases Rent Expense Minimum Rentals
OperatingLeasesRentExpenseMinimumRentals
165980 USD
CY2018 us-gaap Operating Leases Rent Expense Minimum Rentals
OperatingLeasesRentExpenseMinimumRentals
170351 USD
CY2016 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
242295 USD
CY2017 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
253823 USD
CY2018 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
250981 USD
CY2017Q2 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
41236000 USD
CY2018Q2 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
40142000 USD
CY2017Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
96433000 USD
CY2018Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
59277000 USD
CY2016 us-gaap Other Nonrecurring Expense
OtherNonrecurringExpense
11987000 USD
CY2017 us-gaap Other Nonrecurring Expense
OtherNonrecurringExpense
0 USD
CY2018 us-gaap Other Nonrecurring Expense
OtherNonrecurringExpense
313130000 USD
CY2016 us-gaap Payments For Proceeds From Productive Assets
PaymentsForProceedsFromProductiveAssets
111000 USD
CY2017 us-gaap Payments For Proceeds From Productive Assets
PaymentsForProceedsFromProductiveAssets
3048000 USD
CY2018 us-gaap Payments For Proceeds From Productive Assets
PaymentsForProceedsFromProductiveAssets
-1036000 USD
CY2016 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
18615000 USD
CY2017 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
9405000 USD
CY2018 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
1638000 USD
CY2016 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
3251000 USD
CY2017 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
2912000 USD
CY2018 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
CY2016 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
17843000 USD
CY2017 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
186720000 USD
CY2018 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
58259000 USD
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CY2018 us-gaap Basis Of Accounting
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Basis of Presentation</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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 (&#8220;GAAP&#8221;). In the opinion of the Company&#8217;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. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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 52 weeks ended </font><font style="font-family:inherit;font-size:10pt;">April&#160;28, 2018</font><font style="font-family:inherit;font-size:10pt;"> ("Fiscal 2018"), 52 weeks ended </font><font style="font-family:inherit;font-size:10pt;">April&#160;29, 2017</font><font style="font-family:inherit;font-size:10pt;"> ("Fiscal 2017"), and 52 weeks ended </font><font style="font-family:inherit;font-size:10pt;">April&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> ("Fiscal 2016").</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> For our retail operations (BNC and MBS Direct), sales are generally highest in the second and third fiscal quarters, when students generally purchase and rent textbooks, and lowest in the first and fourth fiscal quarters. Sales attributable to our MBS Wholesale business are generally highest in our first, second and third quarter, as it sells textbooks for retail distribution. Student Brands' sale and operating profit are realized relatively consistently throughout the year. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our quarterly results also may fluctuate depending on the timing of the start of the various school&#8217;s semesters, as well as shifts in fiscal calendar dates. These shifts in timing may affect the comparability of our results across periods.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Consolidation</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Fiscal 2018</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For our Fiscal 2018 (52 weeks ended April 28, 2018), the results of operations for the entire 52 weeks ended April 28, 2018 reflected in our consolidated financial statements are presented on a consolidated basis. On August 3, 2017, we acquired Student Brands ("Student Brands"). 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. Subsequent to the acquisition, the consolidated financial statements include the accounts of Student Brands and all material intercompany accounts and transactions have been eliminated in consolidation. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Fiscal 2017</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For our Fiscal 2017 (52 weeks ended April 29, 2017), the results of operations for the entire 52 weeks ended April 29, 2017 reflected in our consolidated financial statements are presented on a consolidated basis. On February 27, 2017, we acquired MBS. The consolidated financial statements for the 52 weeks ended April 29, 2017 include the financial results of MBS from the acquisition date, February 27, 2017, to April 29, 2017. 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. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Fiscal 2016</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On August 2, 2015, we completed the legal separation ("Spin-Off") from Barnes &amp; Noble, Inc., at which time we began to operate as an independent publicly-traded company. For the results of operations for the 13 weeks ended August 1, 2015 (first quarter of Fiscal 2016), our consolidated financial statements are presented on a stand-alone basis since we were still part of Barnes &amp; Noble, Inc. Our consolidated financial statements were derived from the consolidated financial statements and accounting records of Barnes&#160;&amp; Noble, Inc. Subsequent to the Spin-Off from Barnes &amp; Noble, Inc. on August 2, 2015, the results of operations are presented on a consolidated basis for the 39 weeks ended April&#160;30, 2016 (i.e. second, third and fourth quarter of Fiscal 2016) which includes direct costs incurred with Barnes &amp; Noble, Inc. under various agreements. For additional information, see </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Part II - Item 8. Financial Statements and Supplementary Data - Note 10. Barnes &amp; Noble, Inc. Transactions</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font></div></div>
CY2018 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 3. </font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Recent Accounting Pronouncements</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-01")</font><font style="font-family:inherit;font-size:10pt;"> to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. The revised guidance seeks to achieve this objective by requiring reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. We are required to adopt this standard in the first quarter of Fiscal 2020 and early adoption is permitted. The guidance will be applied on a modified retrospective basis beginning with the earliest period presented. The Company has begun to identify and collect relevant data for its leases and is evaluating the changes needed to its processes and internal controls as a result of the new guidance. We are currently evaluating this standard to determine the impact of adoption on our consolidated financial statements.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU No.&#160;2014-09, Revenue from Contracts with Customers (&#8220;ASU 2014-09&#8221;)</font><font style="font-family:inherit;font-size:10pt;">. 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. In 2016, the FASB issued final amendments to clarify the implementation guidance for principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property. In August 2015, FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU No.&#160;2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date</font><font style="font-family:inherit;font-size:10pt;">, which effectively delayed the adoption date by one year. We are required to adopt ASU 2014-09 in the first quarter of Fiscal 2019 and early adoption is permitted. The new standard is required to be applied retrospectively to each prior reporting period (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized as an adjustment to opening retained earnings at the date of initial adoption (modified retrospective method).</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have completed the process of analyzing the impacts of the guidance across all of our revenue streams. This includes reviewing current accounting policies and practices to identify potential differences that would result from applying the guidance. The majority of our revenue is generated from sales of finished products, which will continue to be recognized when control is transferred to the customer. Our assessment included an evaluation of the impact that the guidance will have on our accounting for marketing revenue and other income streams. We evaluated the guidance for our software license revenue, digital product offerings and subscription-based services. We do not have loyalty programs or gift cards. We plan to adopt the standard using the modified retrospective method in the first quarter of Fiscal 2019. We believe the adoption of the guidance will not have a material impact on our consolidated financial statements, other than the additional disclosure requirements.</font></div></div>
CY2018 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 1. </font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Organization</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description of Business </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Barnes &amp; Noble Education, Inc. (&#8220;BNED&#8221;) 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, one of the largest textbook wholesalers and inventory management hardware and software providers, and a leading provider of digital education services. Through our Barnes &amp; Noble College (&#8220;BNC&#8221;) and MBS Textbook Exchange (&#8220;MBS&#8221;) subsidiaries, we operate </font><font style="font-family:inherit;font-size:10pt;">1,444</font><font style="font-family:inherit;font-size:10pt;"> physical and virtual bookstores and serve more than </font><font style="font-family:inherit;font-size:10pt;">6 million</font><font style="font-family:inherit;font-size:10pt;"> students, delivering essential educational content and tools within a dynamic retail environment. Additionally, through our Student Brands subsidiary and associated websites, a leading direct-to-student subscription-based writing services business, we offer services to approximately </font><font style="font-family:inherit;font-size:10pt;">100,000</font><font style="font-family:inherit;font-size:10pt;"> subscribers, by offering student assistance through the writing process and journey.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The strengths of our business, as discussed below, includes our ability to compete by developing new products and solutions to meet market needs, our large footprint with direct access to students and faculty, our well-established, deep relationships with partners and stable, long-term contracts and our well-recognized brands. We expect to continue to grow our business by introducing scalable and advanced digital solutions focused largely on the student, increasing market share with new accounts, and expanding our strategic opportunities through acquisitions and partnerships. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As demand for new, enhanced, and more affordable products and services increase in the rapidly changing education landscape, we strive to evolve our business model and enhance our solutions. We continue to aggressively innovate and collaborate with our partners to provide solutions that extend well beyond course materials sourcing and sales, to include new digital services that support successful student outcomes. We aim to be an even stronger partner for schools and meet customer needs by expanding our physical and virtual bookstore service capabilities, courseware offerings and digital platform services. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Technology-enabled learning is a rapid growth area in the higher education industry, as a growing number of students are enrolling in online services to complement print and digital course materials and classroom activities. We continue to enhance our digital content and services in an efficient, low-cost/high-value manner to complement our course materials business. The implementation of our core digital strategy relies on our direct access to students from our bookstore operations, where we can attach our existing and future suite of digital products and services both online and in our stores. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are ready to meet the digital demand with our virtual bookstore and e-commerce solutions. We focus on providing affordable solutions, such as our First Day&#8482; inclusive access program, in which course materials, including e-content, are offered at a reduced price through a course materials fee, and delivered to students digitally on or before the first day of class. Additionally, our LoudCloud Courseware&#8482;, is a turnkey solution for colleges and universities that offers advanced, affordable learning materials built on a high-quality foundation of OER and enhanced with digital content that includes videos, activities and auto-graded practice assessments that faculty can easily customize to align with class objectives. LoudCloud Courseware&#8482; significantly reduces course material costs for students and enables easier implementation for faculty. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We offer our Student Brands solutions focused on providing students assistance through the writing process and journey. We offer these online solutions to students via internet search engine optimization ("SEO"), as well as by marketing directly to students in our BNC and MBS physical and virtual bookstore footprint. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We believe that our strategic actions over the last three years, including the acquisitions of LoudCloud Systems, Inc. ("LoudCloud"), MBS and Student Brands, respectively, and ongoing development of courseware, have substantially enhanced our competitive position. Fiscal 2018 was a transformational period in which we began to leverage our newly-expanded customer base and distribution channels to broaden our reach to students and deepen our institutional partnerships. We continue to focus on providing product and service offerings designed to address the most pressing issues in higher education, including affordable and accessible course materials and products designed to drive and improve student outcomes. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Effective in the fourth quarter of Fiscal year 2018, we have </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> reportable segments: BNC, MBS, and Digital Student Solutions ("DSS"), as described below. Prior to the fourth quarter of Fiscal year 2018, BNC and MBS were previously our only reportable segments. For additional information related to our strategies, operations and segments</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">,</font><font style="font-family:inherit;font-size:10pt;"> see</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Part I - Item 1. Business </font><font style="font-family:inherit;font-size:10pt;">and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Part II - Item 8. Financial Statements and Supplementary Data - Note 1. Segment Reporting.</font></div></div>
CY2018 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Effective in the fourth quarter of fiscal year 2018, we have three reportable segments: BNC, MBS, and DSS, as described in </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Part II - Item 8. Financial Statements and Supplementary Data - Note 1. Segment Reporting</font><font style="font-family:inherit;font-size:10pt;">. Prior to the fourth quarter of fiscal year 2018, BNC and MBS were previously our only reportable segments. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our consolidated financial statements reflect the following reclassifications for consistency with the current year presentation: 1) Cost of Sales expenses primarily related to facility costs and insurance related to corporate services have been reclassified to Selling and Administrative Expenses; and 2) For our digital rental products, we have reclassified Rental Income to Product Sales and Other, and have reclassified Rental Cost of Sales to Product and Other Cost of Sales, with no impact to Gross Margin. Digital rental revenue and digital rental cost of sales are recognized at the time of delivery and are not deferred over the rental period. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Prior periods presented reflect the segment presentation and reclassifications. </font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div></div>

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