Leases

We recognize lease assets and lease liabilities on the Consolidated Balance Sheets for substantially all lease arrangements based on the present value of future lease payments as required by ASC Topic 842, Leases. Our portfolio of leases consists of operating leases comprised of operating agreements which grant us the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. We have one immaterial finance lease and no short-term leases (i.e., those with a term of twelve months or less).

We recognize a right of use (“ROU”) asset and lease liability in our Consolidated Balance Sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability when it is reasonably certain that such options will be exercised.

Our lease terms generally range from one year to fifteen years, and a number of agreements contain minimum annual guarantees, many of which are adjusted at the start of each contract year based on the actual sales activity of the leased premises for the most recently completed contract year.

Payment terms are based on the fixed rates explicit in the lease, including minimum annual guarantees, and/or variable rates based on: (i) a percentage of revenues or sales arising at the relevant premises (“variable commissions”), and/or (ii) operating expenses, such as common area charges, real estate taxes and insurance. For contracts with fixed lease payments, including those with minimum annual guarantees, we recognize lease expense on a straight-line basis over the lease term. For variable commissions, we recognize lease expense as incurred. Our lease agreements do not contain any material residual value guarantees, material restrictions or covenants.

We use our incremental borrowing rate to determine the present value of fixed lease payments based on the information available at the lease commencement date, if the rate implicit in the lease is not readily determinable. We utilize an estimated collateralized incremental borrowing rate as of the effective date or the commencement date of the lease, whichever is later.

The following table summarizes lease expenses:


	53 weeks ended		52 weeks ended
			As Restated
	May 3, 2025		April 27, 2024
Variable lease expense	$	134,934	$	132,833
Fixed lease expense	60,515		63,865
Total lease expense	$	195,449	$	196,698

The following table summarizes our minimum fixed lease obligations, excluding variable commissions, as of May 3, 2025:


	As of
	May 3, 2025
Fiscal 2026	$	71,853
Fiscal 2027	35,457
Fiscal 2028	29,448
Fiscal 2029	26,063
Fiscal 2030	19,586
Thereafter	18,469
Total lease payments	200,876
Less: imputed interest	(20,857)
Operating lease liabilities at period end	$	180,019

Future lease payment obligations related to leases that were entered into, but did not commence as of May 3, 2025, were not material.

The following summarizes additional information related to our operating leases:


	As of
	May 3, 2025			April 27, 2024
				As Restated
Weighted average remaining lease term (in years)	4.6 years			4.6 years
Weighted average discount rate	5.5		%	4.8		%

Supplemental cash flow information related to leases is as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	72,434		$	66,397
Operating cash flows from financing leases	32			—
Financing cash flows from financing leases	370			—
ROU assets obtained in exchange for lease obligations:
Operating leases	24,716			30,090
Financing leases	1,128			—

Historical Timeline

Fiscal Year	Filed
2025	Dec 23, 2025	Showing above
2024	Jul 1, 2024

2023	Jul 31, 2023

2022	Jun 29, 2022

2020	Jul 14, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Barnes & Noble Education, Inc. Leases Disclosure

Historical Timeline

About Leases Disclosures

Other Available Disclosures