Debtor-in-Possession financial information Debtor-in-Possession Financial Information (Tables)

9 Months Ended

Oct. 28, 2017

DEBTORS’ CONDENSED COMBINED BALANCE SHEET

(Unaudited)



(In millions)	October 28, 2017
ASSETS
Current Assets:
Cash and cash equivalents	$	185
Accounts and other receivables	98
Merchandise inventories	2,080
Prepaid expenses and other current assets	240
Total current assets	2,603
Property and equipment, net	1,458
Investments in subsidiaries	626
Restricted cash	241
Due from affiliates	206
Other assets	14
Total Assets	$	5,148

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable	$	585
Accrued expenses and other current liabilities	219
Income taxes payable	2
Total current liabilities	806
Long-term debt	1,570
Deferred tax liabilities	7
Deferred rent liabilities	1
Other non-current liabilities	9
Total liabilities not subject to compromise	2,393
Liabilities subject to compromise	4,592
Total stockholders’ deficit	(1,837		)
Total Liabilities and Stockholders’ Deficit	$	5,148

EBTORS’ CONDENSED COMBINED STATEMENT OF OPERATIONS

(Unaudited)



	39 Weeks Ended
(In millions)	October 28, 2017
Net sales	$	4,366
Cost of sales	2,926
Gross margin	1,440
Selling, general and administrative expenses	1,650
Depreciation and amortization	135
Other income, net	(105		)
Intercompany income, net	(37		)
Total operating expenses	1,643
Operating loss	(203		)
Interest expense	(235		)
Interest income	9
Reorganization items, net	(334		)
Loss before income taxes	(763		)
Income tax expense	2
Net loss	$	(765	)

DEBTORS’ CONDENSED COMBINED STATEMENT OF CASH FLOWS

(Unaudited)



	39 Weeks Ended
(In millions)	October 28, 2017
Cash Flows from Operating Activities:
Net loss	$	(765	)
Adjustments to reconcile Net loss to Net cash used in operating activities:
Depreciation and amortization	135
Amortization and write-off of debt issuance costs and debt discount	15
Deferred income taxes	4
Reorganization items (1)	168
Reorganization loss on deconsolidation of Toys-Canada	156
Other	4
Changes in operating assets and liabilities:
Accounts and other receivables	4
Merchandise inventories	(405		)
Prepaid expenses and other operating assets	(114		)
Due from affiliates, net	(119		)
Accounts payable, Accrued expenses and other liabilities	406
Income taxes payable, net	(2		)
Net cash used in operating activities	(513		)
Cash Flows from Investing Activities:
Capital expenditures	(87		)
Investment in subsidiary	(3		)
Decrease in restricted cash	(241		)
Deconsolidation of Toys-Canada	(6		)
Net cash used in investing activities	(337		)
Cash Flows from Financing Activities:
Long-term debt borrowings	2,381
Long-term debt repayments	(1,369		)
Capitalized debt issuance costs	(2		)
DIP debt financing costs	(82		)
Net cash provided by financing activities	928
Effect of exchange rate changes on Cash and cash equivalents	1
Cash and cash equivalents:
Net decrease during period	79
Cash and cash equivalents at beginning of period	106
Cash and cash equivalents at end of period	$	185

(1) Includes cash flows from financing activities of $82 million for DIP debt financing costs.