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Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Notes)
9 Months Ended
Oct. 31, 2015
Supplemental Guarantor Financial Information [Abstract]  
Schedule Of Supplemental Guarantor Financial Information [Text Block]
Supplemental Guarantor Financial Information
The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes and 2035 Notes are jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The Company is a holding company, and its most significant assets are the stock of its subsidiaries. The Guarantors represent: (a) substantially all of the sales of the Company’s domestic subsidiaries, (b) more than 90% of the assets owned by the Company’s domestic subsidiaries, other than real property, certain other assets and intercompany investments and balances and (c) more than 95% of the accounts receivable and inventory directly owned by the Company’s domestic subsidiaries.
The following supplemental financial information sets forth for the Company and its guarantor and non-guarantor subsidiaries: the Condensed Consolidating Balance Sheets as of October 31, 2015, January 31, 2015 and November 1, 2014 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended October 31, 2015 and November 1, 2014. In the fourth quarter 2014, the Company added a subsidiary to the Guarantors. Accordingly, the supplemental financial information has been recast for all periods presented.

L BRANDS, INC.
CONDENSED CONSOLIDATING BALANCE SHEETS
(in millions)
(Unaudited)
 
 
October 31, 2015
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
—

 
$
1,085

 
$
226

 
$
—

 
$
1,311

Accounts Receivable, Net
3

 
216

 
64

 
—

 
283

Inventories
—

 
1,465

 
155

 
—

 
1,620

Deferred Income Taxes
—

 
37

 
(2
)
 
—

 
35

Other
—

 
151

 
164

 
—

 
315

Total Current Assets
3

 
2,954

 
607

 
—

 
3,564

Property and Equipment, Net
—

 
1,594

 
756

 
—

 
2,350

Goodwill
—

 
1,318

 
—

 
—

 
1,318

Trade Names and Other Intangible Assets, Net
—

 
411

 
—

 
—

 
411

Net Investments in and Advances to/from Consolidated Affiliates
4,943

 
14,725

 
1,786

 
(21,454
)
 
—

Other Assets
191

 
39

 
708

 
(612
)
 
326

Total Assets
$
5,137

 
$
21,041

 
$
3,857

 
$
(22,066
)
 
$
7,969

LIABILITIES AND EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Accounts Payable
$
1

 
$
525

 
$
387

 
$
—

 
$
913

Accrued Expenses and Other
76

 
463

 
265

 
—

 
804

Current Portion of Long-term Debt
—

 
—

 
4

 
—

 
4

Income Taxes
—

 
—

 
7

 
—

 
7

Total Current Liabilities
77

 
988

 
663

 
—

 
1,728

Deferred Income Taxes
(3
)
 
(33
)
 
304

 
—

 
268

Long-term Debt
5,761

 
597

 
1

 
(597
)
 
5,762

Other Long-term Liabilities
—

 
646

 
235

 
(13
)
 
868

Total Equity (Deficit)
(698
)
 
18,843

 
2,654

 
(21,456
)
 
(657
)
Total Liabilities and Equity (Deficit)
$
5,137

 
$
21,041

 
$
3,857

 
$
(22,066
)
 
$
7,969



L BRANDS, INC.
CONDENSED CONSOLIDATING BALANCE SHEETS
(in millions)

 
January 31, 2015
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
—

 
$
1,462

 
$
219

 
$
—

 
$
1,681

Accounts Receivable, Net
1

 
197

 
54

 
—

 
252

Inventories
—

 
919

 
117

 
—

 
1,036

Deferred Income Taxes
—

 
34

 
(1
)
 
—

 
33

Other
—

 
146

 
84

 
—

 
230

Total Current Assets
1

 
2,758

 
473

 
—

 
3,232

Property and Equipment, Net
—

 
1,385

 
892

 
—

 
2,277

Goodwill
—

 
1,318

 
—

 
—

 
1,318

Trade Names and Other Intangible Assets, Net
—

 
411

 
—

 
—

 
411

Net Investments in and Advances to/from Consolidated Affiliates
4,635

 
14,003

 
1,405

 
(20,043
)
 
—

Other Assets
188

 
35

 
693

 
(610
)
 
306

Total Assets
$
4,824

 
$
19,910

 
$
3,463

 
$
(20,653
)
 
$
7,544

LIABILITIES AND EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Accounts Payable
$
—

 
$
300

 
$
313

 
$
—

 
$
613

Accrued Expenses and Other
83

 
495

 
322

 
—

 
900

Income Taxes
(4
)
 
183

 
(13
)
 
—

 
166

Total Current Liabilities
79

 
978

 
622

 
—

 
1,679

Deferred Income Taxes
(4
)
 
(32
)
 
297

 
—

 
261

Long-term Debt
4,765

 
597

 
—

 
(597
)
 
4,765

Other Long-term Liabilities
—

 
609

 
224

 
(13
)
 
820

Total Equity (Deficit)
(16
)
 
17,758

 
2,320

 
(20,043
)
 
19

Total Liabilities and Equity (Deficit)
$
4,824

 
$
19,910

 
$
3,463

 
$
(20,653
)
 
$
7,544



L BRANDS, INC.
CONDENSED CONSOLIDATING BALANCE SHEETS
(in millions)
(Unaudited)
 
 
November 1, 2014
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
—

 
$
516

 
$
229

 
$
—

 
$
745

Accounts Receivable, Net
3

 
214

 
57

 
—

 
274

Inventories
—

 
1,318

 
167

 
—

 
1,485

Deferred Income Taxes
—

 
44

 
(13
)
 
—

 
31

Other
—

 
178

 
136

 
—

 
314

Total Current Assets
3

 
2,270

 
576

 
—

 
2,849

Property and Equipment, Net
—

 
1,400

 
881

 
—

 
2,281

Goodwill
—

 
1,318

 
—

 
—

 
1,318

Trade Names and Other Intangible Assets, Net
—

 
411

 
—

 
—

 
411

Net Investments in and Advances to/from Consolidated Affiliates
4,392

 
15,372

 
1,170

 
(20,934
)
 
—

Other Assets
184

 
19

 
699

 
(612
)
 
290

Total Assets
$
4,579

 
$
20,790

 
$
3,326

 
$
(21,546
)
 
$
7,149

LIABILITIES AND EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Accounts Payable
$
—

 
$
485

 
$
352

 
$
—

 
$
837

Accrued Expenses and Other
81

 
417

 
237

 
—

 
735

Current Portion of Long-term Debt
213

 
—

 
—

 
—

 
213

Income Taxes
—

 
—

 
14

 
—

 
14

Total Current Liabilities
294

 
902

 
603

 
—

 
1,799

Deferred Income Taxes
(4
)
 
(21
)
 
253

 
—

 
228

Long-term Debt
4,759

 
597

 
—

 
(597
)
 
4,759

Other Long-term Liabilities
1

 
594

 
215

 
(14
)
 
796

Total Equity (Deficit)
(471
)
 
18,718

 
2,255

 
(20,935
)
 
(433
)
Total Liabilities and Equity (Deficit)
$
4,579

 
$
20,790

 
$
3,326

 
$
(21,546
)
 
$
7,149



L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
(in millions)
(Unaudited)
 
 
Third Quarter 2015
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
2,357

 
$
893

 
$
(768
)
 
$
2,482

Costs of Goods Sold, Buying and Occupancy
—

 
(1,456
)
 
(720
)
 
725

 
(1,451
)
Gross Profit
—

 
901

 
173

 
(43
)
 
1,031

General, Administrative and Store Operating Expenses
(4
)
 
(629
)
 
(100
)
 
41

 
(692
)
Operating Income (Loss)
(4
)
 
272

 
73

 
(2
)
 
339

Interest Expense
(79
)
 
(11
)
 
(2
)
 
13

 
(79
)
Other Income
—

 
—

 
—

 
—

 
—

Income (Loss) Before Income Taxes
(83
)
 
261

 
71

 
11

 
260

Provision for Income Taxes
—

 
62

 
34

 
—

 
96

Equity in Earnings (Loss), Net of Tax
247

 
8

 
(37
)
 
(218
)
 
—

Net Income (Loss)
$
164

 
$
207

 
$
—

 
$
(207
)
 
$
164

 
 
 
 
 
 
 
 
 
 




L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
 
 
Third Quarter 2015
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
164

 
$
207

 
$
—

 
$
(207
)
 
$
164

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Reclassification of Cash Flow Hedges to Earnings
—

 
—

 
3

 
—

 
3

Foreign Currency Translation
—

 
—

 
(7
)
 
—

 
(7
)
Unrealized Gain on Cash Flow Hedges
—

 
—

 
2

 
—

 
2

Unrealized Gain on Marketable Securities
—

 
—

 
2

 
—

 
2

Total Other Comprehensive Income (Loss), Net of Tax
—

 
—

 
—

 
—

 
—

Total Comprehensive Income (Loss)
$
164

 
$
207

 
$
—

 
$
(207
)
 
$
164



L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
(in millions)
(Unaudited)
 
 
Third Quarter 2014
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
2,179

 
$
779

 
$
(639
)
 
$
2,319

Costs of Goods Sold, Buying and Occupancy
—

 
(1,363
)
 
(620
)
 
611

 
(1,372
)
Gross Profit
—

 
816

 
159

 
(28
)
 
947

General, Administrative and Store Operating Expenses
(1
)
 
(587
)
 
(104
)
 
29

 
(663
)
Operating Income (Loss)
(1
)
 
229

 
55

 
1

 
284

Interest Expense
(80
)
 
(6
)
 
(2
)
 
8

 
(80
)
Other Income
—

 
—

 
1

 
—

 
1

Income (Loss) Before Income Taxes
(81
)
 
223

 
54

 
9

 
205

Provision for Income Taxes
—

 
47

 
26

 
—

 
73

Equity in Earnings (Loss), Net of Tax
213

 
50

 
7

 
(270
)
 
—

Net Income (Loss)
$
132

 
$
226

 
$
35

 
$
(261
)
 
$
132





L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
 
 
Third Quarter 2014
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
132

 
$
226

 
$
35

 
$
(261
)
 
$
132

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Reclassification of Cash Flow Hedges to Earnings
—

 
—

 
(13
)
 
—

 
(13
)
Foreign Currency Translation
—

 
—

 
3

 
—

 
3

Unrealized Gain on Cash Flow Hedges
—

 
—

 
16

 
—

 
16

Total Other Comprehensive Income (Loss), Net of Tax
—

 
—

 
6

 
—

 
6

Total Comprehensive Income (Loss)
$
132

 
$
226

 
$
41

 
$
(261
)
 
$
138












L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
(in millions)
(Unaudited)
 
 
Year-to-Date 2015
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
7,314

 
$
2,523

 
$
(2,078
)
 
$
7,759

Costs of Goods Sold, Buying and Occupancy
—

 
(4,487
)
 
(2,041
)
 
1,970

 
(4,558
)
Gross Profit
—

 
2,827

 
482

 
(108
)
 
3,201

General, Administrative and Store Operating Expenses
(10
)
 
(1,874
)
 
(302
)
 
99

 
(2,087
)
Operating Income (Loss)
(10
)
 
953

 
180

 
(9
)
 
1,114

Interest Expense
(237
)
 
(23
)
 
(7
)
 
30

 
(237
)
Other Income
—

 
4

 
71

 
—

 
75

Income (Loss) Before Income Taxes
(247
)
 
934

 
244

 
21

 
952

Provision for Income Taxes
—

 
230

 
105

 
—

 
335

Equity in Earnings (Loss), Net of Tax
864

 
386

 
217

 
(1,467
)
 
—

Net Income (Loss)
$
617

 
$
1,090

 
$
356

 
$
(1,446
)
 
$
617





L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
 
 
Year-to-Date 2015
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
617

 
$
1,090

 
$
356

 
$
(1,446
)
 
$
617

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Reclassification of Cash Flow Hedges to Earnings
—

 
—

 
(7
)
 
—

 
(7
)
Foreign Currency Translation
—

 
—

 
5

 
—

 
5

Unrealized Gain on Cash Flow Hedges
—

 
—

 
6

 
—

 
6

Unrealized Gain on Marketable Securities
—

 
—

 
2

 
—

 
2

Total Other Comprehensive Income (Loss), Net of Tax
—

 
—

 
6

 
—

 
6

Total Comprehensive Income (Loss)
$
617

 
$
1,090

 
$
362

 
$
(1,446
)
 
$
623













L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
(in millions)
(Unaudited)
 
 
Year-to-Date 2014
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
6,889

 
$
2,336

 
$
(1,840
)
 
$
7,385

Costs of Goods Sold, Buying and Occupancy
—

 
(4,271
)
 
(1,897
)
 
1,756

 
(4,412
)
Gross Profit
—

 
2,618

 
439

 
(84
)
 
2,973

General, Administrative and Store Operating Expenses
(5
)
 
(1,748
)
 
(311
)
 
87

 
(1,977
)
Operating Income (Loss)
(5
)
 
870

 
128

 
3

 
996

Interest Expense
(246
)
 
(21
)
 
(6
)
 
27

 
(246
)
Other Income
—

 
—

 
6

 
—

 
6

Income (Loss) Before Income Taxes
(251
)
 
849

 
128

 
30

 
756

Provision for Income Taxes
(1
)
 
165

 
115

 
—

 
279

Equity in Earnings (Loss), Net of Tax
727

 
308

 
257

 
(1,292
)
 
—

Net Income (Loss)
$
477

 
$
992

 
$
270

 
$
(1,262
)
 
$
477





L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
 
 
Year-to-Date 2014
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
477

 
$
992

 
$
270

 
$
(1,262
)
 
$
477

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Reclassification of Cash Flow Hedges to Earnings
—

 
—

 
(5
)
 
—

 
(5
)
Foreign Currency Translation
—

 
—

 
—

 
—

 
—

Unrealized Gain on Cash Flow Hedges
—

 
—

 
3

 
—

 
3

Total Other Comprehensive Income (Loss), Net of Tax
—

 
—

 
(2
)
 
—

 
(2
)
Total Comprehensive Income (Loss)
$
477

 
$
992

 
$
268

 
$
(1,262
)
 
$
475



L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
 
 
Year-to-Date 2015
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities
$
(254
)
 
$
377

 
$
139

 
$
—

 
$
262

Investing Activities:
 
 
 
 
 
 
 
 
 
Capital Expenditures
—

 
(440
)
 
(163
)
 
—

 
(603
)
Proceeds from Sale of Assets
—

 
—

 
196

 
—

 
196

Proceeds from Divestiture of Third-party Apparel Sourcing Business
—

 
1

 
84

 
—

 
85

Proceeds from Sale of Marketable Securities
—

 
50

 
—

 
—

 
50

Purchases of Marketable Securities
—

 
(50
)
 
(10
)
 
—

 
(60
)
Net Cash Provided by (Used for) Investing Activities
—

 
(439
)
 
107

 
—

 
(332
)
Financing Activities:
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Long-term Debt, Net of Issuance Costs
988

 
—

 
—

 
—

 
988

Repurchase of Common Stock
(363
)
 
—

 
—

 
—

 
(363
)
Dividends Paid
(1,026
)
 
—

 
—

 
—

 
(1,026
)
Excess Tax Benefits from Share-based Compensation
—

 
57

 
8

 
—

 
65

Net Financing Activities and Advances to/from Consolidated Affiliates
624

 
(370
)
 
(254
)
 
—

 
—

Proceeds from Exercise of Stock Options
31

 
—

 
—

 
—

 
31

Financing Costs and Other
—

 
(2
)
 
5

 
—

 
3

Net Cash Provided by (Used for) Financing Activities
254

 
(315
)
 
(241
)
 
—

 
(302
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents
—

 
—

 
2

 
—

 
2

Net Increase (Decrease) in Cash and Cash Equivalents
—

 
(377
)
 
7

 
—

 
(370
)
Cash and Cash Equivalents, Beginning of Period
—

 
1,462

 
219

 
—

 
1,681

Cash and Cash Equivalents, End of Period
$
—

 
$
1,085

 
$
226

 
$
—

 
$
1,311


L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
 
 
Year-to-Date 2014
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities
$
(260
)
 
$
457

 
$
173

 
$
—

 
$
370

Investing Activities:
 
 
 
 
 
 
 
 
 
Capital Expenditures
—

 
(426
)
 
(159
)
 
—

 
(585
)
Other Investing Activities
—

 
—

 
15

 
—

 
15

Net Cash Used for Investing Activities
—

 
(426
)
 
(144
)
 
—

 
(570
)
Financing Activities:
 
 
 
 
 
 
 
 
 
Borrowings from Revolving Facility
—

 
—

 
5

 
—

 
5

Repayments on Revolving Facility
—

 
—

 
(5
)
 
—

 
(5
)
Repurchase of Common Stock
(48
)
 
—

 
—

 
—

 
(48
)
Dividends Paid
(591
)
 
—

 
—

 
—

 
(591
)
Excess Tax Benefits from Share-based Compensation
—

 
35

 
6

 
—

 
41

Net Financing Activities and Advances to/from Consolidated Affiliates
876

 
(903
)
 
27

 
—

 
—

Proceeds from Exercise of Stock Options
28

 
—

 
—

 
—

 
28

Financing Costs and Other
(5
)
 
—

 
—

 
—

 
(5
)
Net Cash Provided by (Used for) Financing Activities
260

 
(868
)
 
33

 
—

 
(575
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents
—

 
—

 
1

 
—

 
1

Net Increase (Decrease) in Cash and Cash Equivalents
—

 
(837
)
 
63

 
—

 
(774
)
Cash and Cash Equivalents, Beginning of Period
—

 
1,353

 
166

 
—

 
1,519

Cash and Cash Equivalents, End of Period
$
—

 
$
516

 
$
229

 
$
—

 
$
745