Supplemental Guarantor Financial Information

The Company’s 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2027 Notes, 2028 Notes, 2035 Notes, 2036 Notes, Revolving Facility and Secured Foreign Facilities 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 August 4, 2018, February 3, 2018 and July 29, 2017 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended August 4, 2018 and July 29, 2017.

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	August 4, 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	453		$	390	$	—		$	843
Accounts Receivable, Net	—			166			144		—			310
Inventories	—			1,139			176		—			1,315
Other	6			143			98		—			247
Total Current Assets	6			1,901			808		—			2,715
Property and Equipment, Net	—			2,012			937		—			2,949
Goodwill	—			1,318			30		—			1,348
Trade Names	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,544			19,604			2,205		(26,353		)	—
Deferred Income Taxes	—			10			11		—			21
Other Assets	128			14			645		(611		)	176
Total Assets	$	4,678		$	25,270		$	4,636	$	(26,964	)	$	7,620
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	3		$	430		$	388	$	—		$	821
Accrued Expenses and Other	96			539			328		—			963
Current Debt	—			—			65		—			65
Income Taxes	—			—			7		—			7
Total Current Liabilities	99			969			788		—			1,856
Deferred Income Taxes	(2		)	(38		)	277		—			237
Long-term Debt	5,657			597			55		(597		)	5,712
Other Long-term Liabilities	58			796			97		(14		)	937
Total Equity (Deficit)	(1,134		)	22,946			3,419		(26,353		)	(1,122		)
Total Liabilities and Equity (Deficit)	$	4,678		$	25,270		$	4,636	$	(26,964	)	$	7,620

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)



	February 3, 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,164		$	351	$	—		$	1,515
Accounts Receivable, Net	—			186			124		—			310
Inventories	—			1,095			145		—			1,240
Other	—			132			96		—			228
Total Current Assets	—			2,577			716		—			3,293
Property and Equipment, Net	—			1,984			909		—			2,893
Goodwill	—			1,318			30		—			1,348
Trade Names	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,973			18,298			2,106		(25,377		)	—
Deferred Income Taxes	—			10			4		—			14
Other Assets	129			18			654		(611		)	190
Total Assets	$	5,102		$	24,616		$	4,419	$	(25,988	)	$	8,149
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	2		$	349		$	366	$	—		$	717
Accrued Expenses and Other	101			529			399		—			1,029
Current Debt	—			—			87		—			87
Income Taxes	6			174			18		—			198
Total Current Liabilities	109			1,052			870		—			2,031
Deferred Income Taxes	(2		)	(46		)	286		—			238
Long-term Debt	5,706			597			1		(597		)	5,707
Other Long-term Liabilities	64			774			100		(14		)	924
Total Equity (Deficit)	(775		)	22,239			3,162		(25,377		)	(751		)
Total Liabilities and Equity (Deficit)	$	5,102		$	24,616		$	4,419	$	(25,988	)	$	8,149

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	July 29, 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,008		$	352	$	—		$	1,360
Accounts Receivable, Net	—			147			98		—			245
Inventories	—			995			123		—			1,118
Other	—			148			86		—			234
Total Current Assets	—			2,298			659		—			2,957
Property and Equipment, Net	—			1,997			844		—			2,841
Goodwill	—			1,318			30		—			1,348
Trade Names	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,753			17,731			1,834		(24,318		)	—
Deferred Income Taxes	—			10			15		—			25
Other Assets	133			29			631		(612		)	181
Total Assets	$	4,886		$	23,794		$	4,013	$	(24,930	)	$	7,763
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	3		$	414		$	341	$	—		$	758
Accrued Expenses and Other	101			452			307		—			860
Current Debt	—			—			64		—			64
Income Taxes	1			18			57		—			76
Total Current Liabilities	105			884			769		—			1,758
Deferred Income Taxes	(3		)	(78		)	450		—			369
Long-term Debt	5,704			597			—		(597		)	5,704
Other Long-term Liabilities	3			764			91		(14		)	844
Total Equity (Deficit)	(923		)	21,627			2,703		(24,319		)	(912		)
Total Liabilities and Equity (Deficit)	$	4,886		$	23,794		$	4,013	$	(24,930	)	$	7,763

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,797		$	751		$	(564	)	$	2,984
Costs of Goods Sold, Buying and Occupancy	—			(1,835		)	(650		)	560			(1,925		)
Gross Profit	—			962			101			(4		)	1,059
General, Administrative and Store Operating Expenses	(2		)	(717		)	(118		)	6			(831		)
Operating Income (Loss)	(2		)	245			(17		)	2			228
Interest Expense	(97		)	2			(2		)	(1		)	(98		)
Other Income (Loss)	—			3			(4		)	—			(1		)
Income (Loss) Before Income Taxes	(99		)	250			(23		)	1			129
Provision for Income Taxes	—			21			9			—			30
Equity in Earnings (Loss), Net of Tax	198			217			245			(660		)	—
Net Income (Loss)	$	99		$	446		$	213		$	(659	)	$	99

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2018
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	99	$	446	$	213		$	(659	)	$	99
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		(9		)	—			(9		)
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		3			—			3
Reclassification of Cash Flow Hedges to Earnings	—		—		1			—			1
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(5		)	—			(5		)
Total Comprehensive Income (Loss)	$	99	$	446	$	208		$	(659	)	$	94

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,594		$	829		$	(668	)	$	2,755
Costs of Goods Sold, Buying and Occupancy	—			(1,668		)	(642		)	583			(1,727		)
Gross Profit	—			926			187			(85		)	1,028
General, Administrative and Store Operating Expenses	(2		)	(693		)	(96		)	64			(727		)
Operating Income (Loss)	(2		)	233			91			(21		)	301
Interest Expense	(100		)	(22		)	(3		)	24			(101		)
Other Income	—			2			15			—			17
Income (Loss) Before Income Taxes	(102		)	213			103			3			217
Provision for Income Taxes	—			45			33			—			78
Equity in Earnings (Loss), Net of Tax	241			297			230			(768		)	—
Net Income (Loss)	$	139		$	465		$	300		$	(765	)	$	139

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2017
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	139	$	465	$	300		$	(765	)	$	139
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		7			—			7
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		(26		)	—			(26		)
Reclassification of Cash Flow Hedges to Earnings	—		—		12			—			12
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(7		)	—			(7		)
Total Comprehensive Income (Loss)	$	139	$	465	$	293		$	(765	)	$	132

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	5,263		$	1,590		$	(1,243	)	$	5,610
Costs of Goods Sold, Buying and Occupancy	—			(3,457		)	(1,319		)	1,169			(3,607		)
Gross Profit	—			1,806			271			(74		)	2,003
General, Administrative and Store Operating Expenses	(6		)	(1,443		)	(227		)	56			(1,620		)
Operating Income (Loss)	(6		)	363			44			(18		)	383
Interest Expense	(194		)	(18		)	(5		)	21			(196		)
Other Income (Loss)	—			7			(6		)	—			1
Income (Loss) Before Income Taxes	(200		)	352			33			3			188
Provision (Benefit) for Income Taxes	(2		)	34			9			—			41
Equity in Earnings (Loss), Net of Tax	345			432			397			(1,174		)	—
Net Income (Loss)	$	147		$	750		$	421		$	(1,171	)	$	147

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2018
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	147	$	750	$	421		$	(1,171	)	$	147
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		(22		)	—			(22		)
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		9			—			9
Reclassification of Cash Flow Hedges to Earnings	—		—		3			—			3
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(10		)	—			(10		)
Total Comprehensive Income (Loss)	$	147	$	750	$	411		$	(1,171	)	$	137

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	4,890		$	1,526		$	(1,224	)	$	5,192
Costs of Goods Sold, Buying and Occupancy	—			(3,140		)	(1,213		)	1,092			(3,261		)
Gross Profit	—			1,750			313			(132		)	1,931
General, Administrative and Store Operating Expenses	(6		)	(1,329		)	(186		)	100			(1,421		)
Operating Income (Loss)	(6		)	421			127			(32		)	510
Interest Expense	(200		)	(33		)	(5		)	37			(201		)
Other Income	—			5			22			—			27
Income (Loss) Before Income Taxes	(206		)	393			144			5			336
Provision for Income Taxes	—			65			38			—			103
Equity in Earnings (Loss), Net of Tax	439			476			380			(1,295		)	—
Net Income (Loss)	$	233		$	804		$	486		$	(1,290	)	$	233

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2017
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	233	$	804	$	486		$	(1,290	)	$	233
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		10			—			10
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		(16		)	—			(16		)
Reclassification of Cash Flow Hedges to Earnings	—		—		5			—			5
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(1		)	—			(1		)
Total Comprehensive Income (Loss)	$	233	$	804	$	485		$	(1,290	)	$	232

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(219	)	$	471		$	(40	)	$	—		$	212
Investing Activities:
Capital Expenditures	—			(213		)	(132		)	—			(345		)
Return of Capital from Easton Investments	—			—			13			—			13
Net Investments in Consolidated Affiliates	—			—			(11		)	11			—
Other Investing Activities	—			—			2			—			2
Net Cash Provided by (Used for) Investing Activities	—			(213		)	(128		)	11			(330		)
Financing Activities:
Payment of Long-term Debt	(52		)	—			—			—			(52		)
Borrowings from Foreign Facilities	—			—			89			—			89
Repayments of Foreign Facilities	—			—			(57		)	—			(57		)
Dividends Paid	(335		)	—			—			—			(335		)
Repurchases of Common Stock	(186		)	—			—			—			(186		)
Tax Payments related to Share-based Awards	(12		)	—			—			—			(12		)
Proceeds from Exercise of Stock Options	1			—			—			—			1
Financing Costs and Other	(2		)	—			—			—			(2		)
Net Financing Activities and Advances to/from Consolidated Affiliates	805			(969		)	175			(11		)	—
Net Cash Provided by (Used for) Financing Activities	219			(969		)	207			(11		)	(554		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			—			—			—
Net Increase (Decrease) in Cash and Cash Equivalents	—			(711		)	39			—			(672		)
Cash and Cash Equivalents, Beginning of Period	—			1,164			351			—			1,515
Cash and Cash Equivalents, End of Period	$	—		$	453		$	390		$	—		$	843

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(196	)	$	349		$	68		$	—	$	221
Investing Activities:
Capital Expenditures	—			(301		)	(71		)	—		(372		)
Return of Capital from Easton Investments	—			—			27			—		27
Other Investing Activities	—			—			(5		)	—		(5		)
Net Cash Used for Investing Activities	—			(301		)	(49		)	—		(350		)
Financing Activities:
Borrowings from Foreign Facilities	—			—			36			—		36
Repayments of Foreign Facilities	—			—			(8		)	—		(8		)
Dividends Paid	(344		)	—			—			—		(344		)
Repurchases of Common Stock	(132		)	—			—			—		(132		)
Tax Payments related to Share-based Awards	(30		)	—			—			—		(30		)
Proceeds from Exercise of Stock Options	37			—			—			—		37
Financing Costs and Other	(5		)	(3		)	—			—		(8		)
Net Financing Activities and Advances to/from Consolidated Affiliates	670			(599		)	(71		)	—		—
Net Cash Provided by (Used for) Financing Activities	196			(602		)	(43		)	—		(449		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			4			—		4
Net Decrease in Cash and Cash Equivalents	—			(554		)	(20		)	—		(574		)
Cash and Cash Equivalents, Beginning of Period	—			1,562			372			—		1,934
Cash and Cash Equivalents, End of Period	$	—		$	1,008		$	352		$	—	$	1,360