CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)

12 Months Ended

Feb. 03, 2018

Michaels Stores, Inc.

Condensed Consolidated Balance Sheets

(in thousands)


	February 3,		January 28,
ASSETS	2018		2017
Current assets:
Cash and equivalents	$	425,129	$	294,054
Merchandise inventories		1,123,288		1,127,777
Prepaid expenses and other current assets		127,656		116,072
Total current assets		1,676,073		1,537,903
Property and equipment, net		420,020		413,164
Goodwill		119,074		119,074
Other assets		84,537		73,201
Total assets	$	2,299,704	$	2,143,342

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:
Accounts payable	$	483,002	$	517,268
Accrued liabilities and other		369,647		395,745
Current portion of long-term debt		24,900		31,125
Other current liabilities		124,881		123,258
Total current liabilities		1,002,430		1,067,396
Long-term debt		2,701,764		2,723,187
Other liabilities		165,662		103,972
Total stockholders’ deficit		(1,570,152)		(1,751,213)
Total liabilities and stockholders’ deficit	$	2,299,704	$	2,143,342

Michaels Stores, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)


	Fiscal Year
	2017		2016		2015
Net sales	$	5,361,960	$	5,197,292	$	4,912,782
Cost of sales and occupancy expense		3,233,171		3,169,476		2,944,431
Gross profit		2,128,789		2,027,816		1,968,351
Selling, general and administrative		1,389,334		1,305,855		1,241,876
Store pre-opening costs		2,999		4,484		4,786
Operating income		736,456		717,477		721,689
Interest and other expense		129,657		133,529		138,662
Income before income taxes		606,799		583,948		583,027
Income taxes		215,820		204,247		217,428
Net income	$	390,979	$	379,701	$	365,599

Other comprehensive income, net of tax:
Foreign currency translation adjustment and other		10,564		7,832		(10,251)
Comprehensive income	$	401,543	$	387,533	$	355,348

Michaels Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)


	Fiscal Year
	2017		2016		2015
Cash flows from operating activities:
Net cash provided by operating activities	$	535,544	$	577,088	$	507,806

Cash flows from investing activities:
Additions to property and equipment		(127,830)		(114,462)		(123,920)
Acquisition of Lamrite West, net of cash acquired		—		(151,100)		—
Purchases of long-term investments		—		(1,325)		(5,000)
Net cash used in investing activities		(127,830)		(266,887)		(128,920)

Cash flows from financing activities:
Net repayments of debt		(413,325)		(60,675)		(219,947)
Net borrowings of debt		382,200		42,000		45,047
Payment of dividend to Michaels Funding, Inc.		(245,514)		(400,823)		(188,046)
Other financing activities		—		(1,299)		15,151
Net cash used in financing activities		(276,639)		(420,797)		(347,795)

Net change in cash and equivalents		131,075		(110,596)		31,091
Cash and equivalents at beginning of period		294,054		404,650		373,559
Cash and equivalents at end of period	$	425,129	$	294,054	$	404,650