SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF GNC HOLDINGS, INC.

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF GNC HOLDINGS, INC.

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF GNC HOLDINGS, INC.

GNC HOLDINGS, INC.

(Parent Company Only)

Balance Sheets

(in thousands)

	December 31,
	2015			2014
Current assets:
Cash and cash equivalents	$	1		$	1
Prepaids and other current assets	385			343
Total current assets	386			344
Long-term assets:
Deferred financing fees	248			—
Intercompany receivable	164,300			—
Investment in subsidiaries	709,409			905,524
Total long-term assets	873,957			905,524
Total assets	$	874,343		$	905,868
Current liabilities:
Accounts payable	$	22		$	—
Intercompany payable	3,502			1,466
Deferred revenue and other current liabilities	1,995			189
Total current liabilities	5,519			1,655
Long-term liabilities:
Deferred tax liabilities	16,599			—
Convertible senior notes	235,085			—
Intercompany loan	148,579			148,170
Total long term liabilities	400,263			148,170
Total liabilities	405,782			149,825
Stockholders' equity:
Class A common stock	114			113
Additional paid-in capital	916,128			877,566
Retained earnings	1,058,148			898,574
Treasury stock, at cost	(1,496,180		)	(1,016,381		)
Accumulated other comprehensive loss	(9,649		)	(3,829		)
Total stockholders' equity	468,561			756,043
Total liabilities and stockholders' equity	$	874,343		$	905,868

See the accompanying note to the condensed parent-only financial statements.

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF GNC HOLDINGS, INC.

GNC HOLDINGS, INC.

(Parent Company Only)

Statements of Income and Comprehensive Income

(in thousands, except per share data)

	Year ended December 31,
	2015			2014			2013
Selling, general and administrative	$	1,645		$	1,552		$	749
Subsidiary income	(223,090		)	(257,045		)	(265,522		)
Operating income	221,445			255,493			264,773
Interest expense, net	4,241			153			44
Income before income taxes	217,204			255,340			264,729
Income tax benefit	(2,095		)	(532		)	(292		)
Net income	$	219,299		$	255,872		$	265,021
Other comprehensive loss:
Foreign currency translation loss	(7,439		)	(5,784		)	(1,092		)
Release of cumulative translation loss to earnings related to substantial liquidation of Discount Supplements	1,619			—			—
Other comprehensive loss	(5,820		)	(5,784		)	(1,092		)
Comprehensive income	$	213,479		$	250,088		$	263,929
Earning per share:
Basic	$	2.61		$	2.83		$	2.75
Diluted	$	2.60		$	2.81		$	2.72
Weighted average common shares outstanding (Note 13):
Basic	83,927			90,493			96,481
Diluted	84,186			90,918			97,383
Dividends declared per share	$	0.72		$	0.64		$	0.60

See the accompanying note to the condensed parent-only financial statements.

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF GNC HOLDINGS, INC.

GNC HOLDINGS, INC.

(Parent Company Only)

Statements of Cash Flows

(in thousands)

	Year ended December 31,
	2015			2014			2013
Cash flows from operating activities:
Net income	$	219,299		$	255,872		$	265,021
Equity in income of subsidiaries	(223,090		)	(257,045		)	(265,522		)
Dividends received	422,355			317,808			289,300
Other operating activities	4,738			2,393			1,334
Net cash provided by operating activities	423,302			319,028			290,133
Cash flows from financing activities:
Loan from a subsidiary	—			—			62,700
Loan to a subsidiary	(164,300		)	—			—
Proceeds from issuance of convertible notes	287,500			—			—
Debt issuance costs on convertible senior notes	(8,225		)	—			—
Proceeds from exercise of stock options	1,744			22,170			14,588
Minimum tax withholding requirements	(574		)	(762		)	(1,327		)
Repurchase of treasury stock	(479,799		)	(283,226		)	(309,255		)
Dividend payment	(59,648		)	(57,491		)	(57,437		)
Net cash used in financing activities	(423,302		)	(319,309		)	(290,731		)
Net decrease in cash and cash equivalents	—			(281		)	(598		)
Beginning balance, cash and cash equivalents	1			282			880
Ending balance, cash and cash equivalents	$	1		$	1		$	282

See the accompanying note to the condensed parent-only financial statements.

BACKGROUND

These condensed parent company financial statements should be read in conjunction with the consolidated financial statements of GNC Holdings, Inc. and subsidiaries. The Senior Credit Facility of General Nutrition Centers, Inc. ("Centers"), a wholly owned subsidiary of GNC Holdings, Inc., contains customary covenants, including incurrence covenants and certain other limitations on the ability of GNC Corporation, Centers, and Centers' subsidiaries to, among other things, make optional payments in respect of other debt instruments, pay dividends or other payments on capital stock, and enter into arrangements that restrict their ability to pay dividends or grant liens.