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Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information
9 Months Ended
Nov. 02, 2019
Supplemental Guarantor Financial Information [Abstract]  
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information
The Company’s 2021 Notes, 2022 Notes, 2023 Notes, 2027 Notes, 2028 Notes, 2029 Notes, 2035 Notes, 2036 Notes, Secured 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 November 2, 2019, February 2, 2019 and November 3, 2018 and the Condensed Consolidating Statements of Income (Loss), Comprehensive Income (Loss) and Cash Flows for the periods ended November 2, 2019 and November 3, 2018.
L BRANDS, INC.
CONDENSED CONSOLIDATING BALANCE SHEET
(in millions)
(Unaudited)
 
 
November 2, 2019
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
—

 
$
186

 
$
154

 
$
—

 
$
340

Accounts Receivable, Net
—

 
191

 
104

 
—

 
295

Inventories
—

 
1,864

 
168

 
—

 
2,032

Other
9

 
53

 
197

 
—

 
259

Total Current Assets
9

 
2,294

 
623

 
—

 
2,926

Property and Equipment, Net
—

 
1,823

 
748

 
—

 
2,571

Operating Lease Assets
—

 
2,587

 
543

 
—

 
3,130

Goodwill
—

 
1,318

 
—

 
—

 
1,318

Trade Names
—

 
411

 
—

 
—

 
411

Net Investments in and Advances to/from Consolidated Affiliates
4,095

 
20,095

 
2,835

 
(27,025
)
 
—

Deferred Income Taxes
—

 
9

 
54

 
—

 
63

Other Assets
130

 
10

 
700

 
(629
)
 
211

Total Assets
$
4,234

 
$
28,547

 
$
5,503

 
$
(27,654
)
 
$
10,630

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

 
$
576

 
$
447

 
$
—

 
$
1,024

Accrued Expenses and Other
69

 
587

 
324

 
—

 
980

Current Debt
—

 
—

 
75

 
—

 
75

Current Operating Lease Liabilities
—

 
377

 
83

 
—

 
460

Income Taxes
—

 
—

 
4

 
—

 
4

Total Current Liabilities
70

 
1,540

 
933

 
—

 
2,543

Deferred Income Taxes
1

 
(41
)
 
286

 
—

 
246

Long-term Debt
5,392

 
615

 
85

 
(615
)
 
5,477

Long-term Operating Lease Liabilities
—

 
2,579

 
529

 
—

 
3,108

Other Long-term Liabilities
62

 
397

 
49

 
(14
)
 
494

Total Equity (Deficit)
(1,291
)
 
23,457

 
3,621

 
(27,025
)
 
(1,238
)
Total Liabilities and Equity (Deficit)
$
4,234

 
$
28,547

 
$
5,503

 
$
(27,654
)
 
$
10,630














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

 
February 2, 2019
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
—

 
$
997

 
$
416

 
$
—

 
$
1,413

Accounts Receivable, Net
—

 
241

 
126

 
—

 
367

Inventories
—

 
1,093

 
155

 
—

 
1,248

Other
—

 
139

 
93

 
—

 
232

Total Current Assets
—

 
2,470

 
790

 
—

 
3,260

Property and Equipment, Net
—

 
1,922

 
896

 
—

 
2,818

Goodwill
—

 
1,318

 
30

 
—

 
1,348

Trade Names
—

 
411

 
—

 
—

 
411

Net Investments in and Advances to/from Consolidated Affiliates
4,755

 
19,737

 
2,047

 
(26,539
)
 
—

Deferred Income Taxes
—

 
9

 
53

 
—

 
62

Other Assets
127

 
15

 
670

 
(621
)
 
191

Total Assets
$
4,882

 
$
25,882

 
$
4,486

 
$
(27,160
)
 
$
8,090

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

 
$
363

 
$
348

 
$
—

 
$
711

Accrued Expenses and Other
92

 
597

 
393

 
—

 
1,082

Current Debt
—

 
—

 
72

 
—

 
72

Income Taxes
(7
)
 
100

 
28

 
—

 
121

Total Current Liabilities
85

 
1,060

 
841

 
—

 
1,986

Deferred Income Taxes
1

 
(44
)
 
269

 
—

 
226

Long-term Debt
5,661

 
606

 
79

 
(607
)
 
5,739

Other Long-term Liabilities
59

 
852

 
107

 
(14
)
 
1,004

Total Equity (Deficit)
(924
)
 
23,408

 
3,190

 
(26,539
)
 
(865
)
Total Liabilities and Equity (Deficit)
$
4,882

 
$
25,882

 
$
4,486

 
$
(27,160
)
 
$
8,090



L BRANDS, INC.
CONDENSED CONSOLIDATING BALANCE SHEET
(in millions)
(Unaudited)
 
 
November 3, 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
—

 
$
167

 
$
181

 
$
—

 
$
348

Accounts Receivable, Net
—

 
212

 
109

 
—

 
321

Inventories
—

 
1,700

 
263

 
—

 
1,963

Other
15

 
165

 
121

 
—

 
301

Total Current Assets
15

 
2,244

 
674

 
—

 
2,933

Property and Equipment, Net
—

 
2,019

 
915

 
—

 
2,934

Goodwill
—

 
1,318

 
30

 
—

 
1,348

Trade Names
—

 
411

 
—

 
—

 
411

Net Investments in and Advances to/from Consolidated Affiliates
4,396

 
19,442

 
2,386

 
(26,224
)
 
—

Deferred Income Taxes
—

 
9

 
11

 
—

 
20

Other Assets
127

 
14

 
683

 
(641
)
 
183

Total Assets
$
4,538

 
$
25,457

 
$
4,699

 
$
(26,865
)
 
$
7,829

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

 
$
585

 
$
475

 
$
—

 
$
1,060

Accrued Expenses and Other
62

 
583

 
373

 
—

 
1,018

Current Debt
—

 
—

 
56

 
—

 
56

Income Taxes
—

 
—

 
8

 
—

 
8

Total Current Liabilities
62

 
1,168

 
912

 
—

 
2,142

Deferred Income Taxes
(2
)
 
(43
)
 
279

 
—

 
234

Long-term Debt
5,743

 
627

 
71

 
(627
)
 
5,814

Other Long-term Liabilities
58

 
810

 
97

 
(14
)
 
951

Total Equity (Deficit)
(1,323
)
 
22,895

 
3,340

 
(26,224
)
 
(1,312
)
Total Liabilities and Equity (Deficit)
$
4,538

 
$
25,457

 
$
4,699

 
$
(26,865
)
 
$
7,829



L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)
(in millions)
(Unaudited)
 
 
Third Quarter 2019
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
2,583

 
$
887

 
$
(793
)
 
$
2,677

Costs of Goods Sold, Buying and Occupancy
—

 
(1,761
)
 
(887
)
 
712

 
(1,936
)
Gross Profit
—

 
822

 
—

 
(81
)
 
741

General, Administrative and Store Operating Expenses
(1
)
 
(831
)
 
(118
)
 
58

 
(892
)
Operating Income (Loss)
(1
)
 
(9
)
 
(118
)
 
(23
)
 
(151
)
Interest Expense
(90
)
 
(23
)
 
(2
)
 
23

 
(92
)
Other Income (Loss)
—

 
(16
)
 
(18
)
 
—

 
(34
)
Income (Loss) Before Income Taxes
(91
)
 
(48
)
 
(138
)
 
—

 
(277
)
Provision (Benefit) for Income Taxes
—

 
(4
)
 
(21
)
 
—

 
(25
)
Equity in Earnings (Loss), Net of Tax
(161
)
 
(176
)
 
(55
)
 
392

 
—

Net Income (Loss)
$
(252
)
 
$
(220
)
 
$
(172
)
 
$
392

 
$
(252
)




L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(Unaudited)
 
 
Third Quarter 2019
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
(252
)
 
$
(220
)
 
$
(172
)
 
$
392

 
$
(252
)
Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Foreign Currency Translation
—

 
—

 
6

 
—

 
6

Unrealized Gain (Loss) on Cash Flow Hedges
—

 
—

 
(2
)
 
—

 
(2
)
Total Other Comprehensive Income (Loss), Net of Tax
—

 
—

 
4

 
—

 
4

Total Comprehensive Income (Loss)
$
(252
)
 
$
(220
)
 
$
(168
)
 
$
392

 
$
(248
)













L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)
(in millions)
(Unaudited)
 
 
Third Quarter 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
2,644

 
$
965

 
$
(834
)
 
$
2,775

Costs of Goods Sold, Buying and Occupancy
—

 
(1,786
)
 
(838
)
 
777

 
(1,847
)
Gross Profit
—

 
858

 
127

 
(57
)
 
928

General, Administrative and Store Operating Expenses
(2
)
 
(785
)
 
(127
)
 
40

 
(874
)
Operating Income (Loss)
(2
)
 
73

 
—

 
(17
)
 
54

Interest Expense
(94
)
 
(19
)
 
—

 
17

 
(96
)
Other Income (Loss)
—

 
2

 
(1
)
 
—

 
1

Income (Loss) Before Income Taxes
(96
)
 
56

 
(1
)
 
—

 
(41
)
Provision (Benefit) for Income Taxes
1

 
(1
)
 
2

 
—

 
2

Equity in Earnings (Loss), Net of Tax
54

 
(92
)
 
(103
)
 
141

 
—

Net Income (Loss)
$
(43
)
 
$
(35
)
 
$
(106
)
 
$
141

 
$
(43
)




L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(Unaudited)
 
 
Third Quarter 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
(43
)
 
$
(35
)
 
$
(106
)
 
$
141

 
$
(43
)
Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Foreign Currency Translation
—

 
—

 
(2
)
 
—

 
(2
)
Unrealized Gain (Loss) on Cash Flow Hedges
—

 
—

 
1

 
—

 
1

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

 
—

 
(1
)
 
—

 
(1
)
Total Comprehensive Income (Loss)
$
(43
)
 
$
(35
)
 
$
(107
)
 
$
141

 
$
(44
)














L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)
(in millions)
(Unaudited)

 
Year-to-Date 2019
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
7,831

 
$
2,407

 
$
(2,031
)
 
$
8,207

Costs of Goods Sold, Buying and Occupancy
—

 
(5,275
)
 
(2,070
)
 
1,795

 
(5,550
)
Gross Profit
—

 
2,556

 
337

 
(236
)
 
2,657

General, Administrative and Store Operating Expenses
(9
)
 
(2,345
)
 
(293
)
 
167

 
(2,480
)
Operating Income (Loss)
(9
)
 
211

 
44

 
(69
)
 
177

Interest Expense
(280
)
 
(70
)
 
(5
)
 
69

 
(286
)
Other Income (Loss)
(40
)
 
(5
)
 
(21
)
 
—

 
(66
)
Income (Loss) Before Income Taxes
(329
)
 
136

 
18

 
—

 
(175
)
Provision (Benefit) for Income Taxes
(8
)
 
2

 
5

 
—

 
(1
)
Equity in Earnings (Loss), Net of Tax
147

 
82

 
80

 
(309
)
 
—

Net Income (Loss)
$
(174
)
 
$
216

 
$
93

 
$
(309
)
 
$
(174
)




L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(Unaudited)

 
Year-to-Date 2019
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
(174
)
 
$
216

 
$
93

 
$
(309
)
 
$
(174
)
Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Foreign Currency Translation
—

 
—

 
(5
)
 
—

 
(5
)
Unrealized Gain (Loss) on Cash Flow Hedges
—

 
—

 
2

 
—

 
2

Reclassification of Cash Flow Hedges to Earnings
—

 
—

 
(3
)
 
—

 
(3
)
Total Other Comprehensive Income (Loss), Net of Tax
—

 
—

 
(6
)
 
—

 
(6
)
Total Comprehensive Income (Loss)
$
(174
)
 
$
216

 
$
87

 
$
(309
)
 
$
(180
)












L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)
(in millions)
(Unaudited)

 
Year-to-Date 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$
—

 
$
7,907

 
$
2,555

 
$
(2,077
)
 
$
8,385

Costs of Goods Sold, Buying and Occupancy
—

 
(5,243
)
 
(2,157
)
 
1,946

 
(5,454
)
Gross Profit
—

 
2,664

 
398

 
(131
)
 
2,931

General, Administrative and Store Operating Expenses
(8
)
 
(2,228
)
 
(354
)
 
96

 
(2,494
)
Operating Income (Loss)
(8
)
 
436

 
44

 
(35
)
 
437

Interest Expense
(288
)
 
(37
)
 
(5
)
 
38

 
(292
)
Other Income (Loss)
—

 
8

 
(7
)
 
—

 
1

Income (Loss) Before Income Taxes
(296
)
 
407

 
32

 
3

 
146

Provision (Benefit) for Income Taxes
(1
)
 
32

 
11

 
—

 
42

Equity in Earnings (Loss), Net of Tax
399

 
340

 
294

 
(1,033
)
 
—

Net Income (Loss)
$
104

 
$
715

 
$
315

 
$
(1,030
)
 
$
104





L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(Unaudited)

 
Year-to-Date 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
104

 
$
715

 
$
315

 
$
(1,030
)
 
$
104

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Foreign Currency Translation
—

 
—

 
(24
)
 
—

 
(24
)
Unrealized Gain (Loss) on Cash Flow Hedges
—

 
—

 
10

 
—

 
10

Reclassification of Cash Flow Hedges to Earnings
—

 
—

 
3

 
—

 
3

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

 
—

 
(11
)
 
—

 
(11
)
Total Comprehensive Income (Loss)
$
104

 
$
715

 
$
304

 
$
(1,030
)
 
$
93



L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(in millions)
(Unaudited)
 
 
Year-to-Date 2019
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities
$
(345
)
 
$
(377
)
 
$
632

 
$
—

 
$
(90
)
Investing Activities:
 
 
 
 
 
 
 
 
 
Capital Expenditures
—

 
(245
)
 
(147
)
 
—

 
(392
)
Net Investments in Consolidated Affiliates
—

 
—

 
(137
)
 
137

 
—

Other Investing Activities
—

 
12

 
(28
)
 
—

 
(16
)
Net Cash Provided by (Used for) Investing Activities
—

 
(233
)
 
(312
)
 
137

 
(408
)
Financing Activities:
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Long-term Debt, Net of Issuance Costs
486

 
—

 
—

 
—

 
486

Payments of Long-term Debt
(799
)
 
—

 
—

 
—

 
(799
)
Borrowings from Foreign Facilities
—

 
—

 
36

 
—

 
36

Repayments of Foreign Facilities
—

 
—

 
(21
)
 
—

 
(21
)
Dividends Paid
(249
)
 
—

 
—

 
—

 
(249
)
Tax Payments related to Share-based Awards
(12
)
 
—

 
—

 
—

 
(12
)
Financing Costs and Other
(6
)
 
(5
)
 
—

 
—

 
(11
)
Net Financing Activities and Advances to/from Consolidated Affiliates
925

 
(196
)
 
(592
)
 
(137
)
 
—

Net Cash Provided by (Used for) Financing Activities
345


(201
)

(577
)

(137
)

(570
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents
—

 
—

 
(5
)
 
—

 
(5
)
Net Increase (Decrease) in Cash and Cash Equivalents
—

 
(811
)
 
(262
)
 
—

 
(1,073
)
Cash and Cash Equivalents, Beginning of Period
—

 
997

 
416

 
—

 
1,413

Cash and Cash Equivalents, End of Period
$
—

 
$
186

 
$
154

 
$
—

 
$
340


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
$
(361
)
 
$
295

 
$
79

 
$
—

 
$
13

Investing Activities:
 
 
 
 
 
 
 
 
 
Capital Expenditures
—

 
(367
)
 
(194
)
 
—

 
(561
)
Net Investments in Consolidated Affiliates
—

 
—

 
(181
)
 
181

 
—

Other Investing Activities
—

 
6

 
17

 
—

 
23

Net Cash Provided by (Used for) Investing Activities
—

 
(361
)
 
(358
)
 
181

 
(538
)
Financing Activities:
 
 
 
 
 
 
 
 
 
Payments of Long-term Debt
(52
)
 
—

 
—

 
—

 
(52
)
Borrowing from Secured Revolving Facility
85

 
—

 
—

 
—

 
85

Borrowings from Foreign Facilities
—

 
—

 
110

 
—

 
110

Repayments of Foreign Facilities
—

 
—

 
(71
)
 
—

 
(71
)
Dividends Paid
(500
)
 
—

 
—

 
—

 
(500
)
Repurchases of Common Stock
(198
)
 
—

 
—

 
—

 
(198
)
Tax Payments related to Share-based Awards
(13
)
 
—

 
—

 
—

 
(13
)
Financing Costs and Other
(2
)
 
(2
)
 
—

 
—

 
(4
)
Net Financing Activities and Advances to/from Consolidated Affiliates
1,041

 
(929
)
 
69

 
(181
)
 
—

Net Cash Provided by (Used for) Financing Activities
361

 
(931
)
 
108

 
(181
)
 
(643
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents
—

 
—

 
1

 
—

 
1

Net Increase (Decrease) in Cash and Cash Equivalents
—

 
(997
)
 
(170
)
 
—

 
(1,167
)
Cash and Cash Equivalents, Beginning of Period
—

 
1,164

 
351

 
—

 
1,515

Cash and Cash Equivalents, End of Period
$
—

 
$
167

 
$
181

 
$
—

 
$
348