For the fiscal years ended April 30, 2026 and 2025, Immersion’s leases and related activity were not material.

Barnes & Noble Education recognizes 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 Leases. Barnes & Noble Education’s portfolio of leases consists of operating leases comprised of operating agreements which grant Barnes & Noble Education the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. Barnes & Noble Education has one immaterial finance lease and no short-term leases (i.e., those with a term of twelve months or less).

Barnes & Noble Education recognizes an ROU asset and lease liability on the 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.

Barnes & Noble Education 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, Barnes & Noble Education recognizes lease expense on a straight-line basis over the lease term. For variable commissions, Barnes & Noble Education recognizes lease expense as incurred. Barnes & Noble Education lease agreements do not contain any material residual value guarantees, material restrictions or covenants.

Barnes & Noble Education uses its 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. Barnes & Noble Education utilizes an estimated collateralized incremental borrowing rate as of the effective date or the commencement date of the lease, whichever is later.

The following summarizes lease expense for the periods presented below (in thousands):


	Fiscal Year Ended April 30, 2026		From June 10, 2024 to April 30, 2025
Operating lease costs	$	55,186	$	60,179
Variable lease costs		143,392		59,650
Short-term lease costs		—		16,970
Total lease costs	$	198,578	$	136,799

The following summarizes Barnes & Noble Education’s minimum fixed lease obligations, excluding variable commissions, at (in thousands):


	Operating lease liabilities
Fiscal 2027	$	78,772
Fiscal 2028		25,099
Fiscal 2029		21,523
Fiscal 2030		14,919
Fiscal 2031		16,821
Thereafter		7,500
Total lease payments		164,634
Less: imputed interest		(12,953	)
Operating lease liabilities at period end	$	151,681

Future lease payment obligations related to leases that were entered into, but did not commence at April 30, 2026, were not material.

The following is additional information related to Barnes & Noble Education’s operating leases as of (in thousands except weighted-average information):


	April 30, 2026			April 30, 2025
Weighted-average remaining lease term (in years)	4.4			4.7
Weighted-average discount rate		6.7	%		6.8	%
Supplemental cash flow information:
Cash payments for lease liabilities within operating activities	$	55,343		$	110,853
ROU assets obtained in exchange for lease liabilities from initial recognition		42,580			19,977