Condensed Consolidating Financial Information (Tables)

9 Months Ended

Nov. 02, 2013

Condensed Consolidating Financial Information

Schedule of Supplemental Condensed Consolidating Balance Sheet

	November 2, 2013
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	49		$	19	$	—		$	68
Merchandise inventories	745			374		—			1,119
Intercompany receivables	1			614		(614		)	1
Other	129			28		—			157
Total current assets	924			1,035		(614		)	1,345
Property and equipment, net	278			75		—			353
Goodwill	94			—		—			94
Investment in subsidiaries	489			—		(489		)	—
Long-term receivable from Parent	5			—					5
Other assets	66			3		—			69
Total assets	$	1,856		$	1,113	$	(1,103	)	$	1,866
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	13		$	454	$	—		$	467
Accrued liabilities and other	209			133		—			342
Share-based compensation	8			13		—			21
Current portion of long-term debt	203			—		—			203
Intercompany payable	614			—		(614		)	—
Other	9			1		—			10
Total current liabilities	1,056			601		(614		)	1,043
Long-term debt	2,878			—		—			2,878
Share-based compensation	18			10		—			28
Other long-term liabilities	75			13		—			88
Total stockholders’ deficit	(2,171		)	489		(489		)	(2,171		)
Total liabilities and stockholders’ deficit	$	1,856		$	1,113	$	(1,103	)	$	1,866

	February 2, 2013
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	37		$	19	$	—		$	56
Merchandise inventories	591			271		—			862
Intercompany receivables	—			329		(329		)	—
Other	105			21		—			126
Total current assets	733			640		(329		)	1,044
Property and equipment, net	271			67		—			338
Goodwill	94			—		—			94
Investment in subsidiaries	284			—		(284		)	—
Other assets	76			3		—			79
Total assets	$	1,458		$	710	$	(613	)	$	1,555
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	5		$	258	$	—		$	263
Accrued liabilities and other	235			132		—			367
Share-based compensation	22			13		—			35
Current portion of long-term debt	150			—		—			150
Intercompany payable	329			—		(329		)	—
Other	36			5		—			41
Total current liabilities	777			408		(329		)	856
Long-term debt	2,891			—		—			2,891
Other long-term liabilities	73			12		—			85
Share-based compensation	21			6		—			27
Total stockholders’ deficit	(2,304		)	284		(284		)	(2,304		)
Total liabilities and stockholders’ deficit	$	1,458		$	710	$	(613	)	$	1,555

	October 27, 2012
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	Restated (in millions)
ASSETS
Current assets:
Cash and equivalents	$	138		$	23	$	—		$	161
Merchandise inventories	717			361		—			1,078
Intercompany receivables	—			637		(637		)	—
Other	120			30		—			150
Total current assets	975			1,051		(637		)	1,389
Property and equipment, net	277			67		—			344
Goodwill	95			—		—			95
Investment in subsidiaries	610			—		(610		)	—
Other assets	86			3		—			89
Total assets	$	2,043		$	1,121	$	(1,247	)	$	1,917
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	23		$	351	$	—		$	374
Accrued liabilities and other	295			129		—			424
Share-based compensation	19			11		—			30
Current portion of long-term debt	180			—		—			180
Intercompany payable	637			—		(637		)	—
Other	6			1		—			7
Total current liabilities	1,160			492		(637		)	1,015
Long-term debt	3,188			—		—			3,188
Other long-term liabilities	85			12		—			97
Share-based compensation	17			7		—			24
Total stockholders’ deficit	(2,407		)	610		(610		)	(2,407		)
Total liabilities and stockholders’ deficit	$	2,043		$	1,121	$	(1,247	)	$	1,917

Schedule of Supplemental Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended November 2, 2013
	Parent Company		Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	981	$	748		$	(611	)	$	1,118
Cost of sales and occupancy expense	623		653			(611		)	665
Gross profit	358		95			—			453
Selling, general, and administrative expense	265		44			—			309
Share-based compensation expense	3		1						4
Related party expenses	3		—			—			3
Store pre-opening costs	1		1			—			2
Operating income	86		49			—			135
Interest expense	45		—			—			45
Refinancing costs and losses on early extinguishment of debt	—		—			—			—
Other (income) and expense, net	—		—			—			—
Intercompany charges (income)	20		(20		)	—			—
Equity in earnings of subsidiaries	69		—			(69		)	—
Income before income taxes	90		69			(69		)	90
Provision for income taxes	32		25			(25		)	32
Net income	58		44			(44		)	58
Comprehensive income	$	58	$	44		$	(44	)	$	58

	Quarter Ended October 27, 2012
	Parent Company		Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	883	$	685		$	(554	)	$	1,014
Cost of sales and occupancy expense	573		593			(554		)	612
Gross profit	310		92			—			402
Selling, general, and administrative expense	239		38			—			277
Share-based compensation expense	1		1			—			2
Related party expenses	3		—			—			3
Store pre-opening costs	2		1			—			3
Operating income	65		52			—			117
Interest expense	60		—			—			60
Refinancing costs and losses on early extinguishment of debt	3		—			—			3
Other (income) and expense, net	—		—			—			—
Intercompany charges (income)	21		(21		)	—			—
Equity in earnings of subsidiaries	73		—			(73		)	—
Income before income taxes	54		73			(73		)	54
Provision for income taxes	19		26			(26		)	19
Net income	35		47			(47		)	35
Comprehensive income	$	35	$	47		$	(47	)	$	35

	Nine Months Ended November 2, 2013
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	2,633		$	1,829		$	(1,447	)	$	3,015
Cost of sales and occupancy expense	1,702			1,561			(1,447		)	1,816
Gross profit	931			268			—			1,199
Selling, general, and administrative expense	721			114			—			835
Share-based compensation expense	12			3						15
Related party expenses	10			—			—			10
Store pre-opening costs	4			1			—			5
Operating income	184			150			—			334
Interest expense	137			—			—			137
Refinancing costs and losses on early extinguishment of debt	7			—			—			7
Other (income) and expense, net	—			1			—			1
Intercompany charges (income)	44			(44		)	—			—
Equity in earnings of subsidiaries	193			—			(193		)	—
Income before income taxes	189			193			(193		)	189
Provision for income taxes	68			69			(69		)	68
Net income	121			124			(124		)	121
Other comprehensive income, net of tax:
Foreign currency translation adjustment	(2		)	—			—			(2		)
Comprehensive income	$	119		$	124		$	(124	)	$	119

	Nine Months Ended October 27, 2012
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	2,520		$	1,756		$	(1,392	)	$	2,884
Cost of sales and occupancy expense	1,625			1,503			(1,392		)	1,736
Gross profit	895			253			—			1,148
Selling, general, and administrative expense	681			106			—			787
Share-based compensation expense	7			2			—			9
Related party expenses	10			—			—			10
Store pre-opening costs	4			1			—			5
Operating income	193			144			—			337
Interest expense	187			—			—			187
Refinancing costs and losses on early extinguishment of debt	3			—			—			3
Other (income) and expense, net	(1		)	—			—			(1		)
Intercompany charges (income)	53			(53		)	—			—
Equity in earnings of subsidiaries	197			—			(197		)	—
Income before income taxes	148			197			(197		)	148
Provision for income taxes	53			71			(71		)	53
Net income	95			126			(126		)	95
Comprehensive income	$	95		$	126		$	(126	)	$	95

Schedule of Supplemental Condensed Consolidating Statement of Cash Flows

	Nine Months Ended November 2, 2013
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net cash provided by operating activities	$	51		$	94		$	(71	)	$	74
Investing activities:
Cash paid for property and equipment	(59		)	(23		)	—			(82		)
Net cash used in investing activities	(59		)	(23		)	—			(82		)
Financing activities:
Net repayments of short-term debt	36			—			—			36
Intercompany dividends	—			(71		)	71			—
Other financing activities	(16		)	—			—			(16		)
Net cash provided by (used in) financing activities	20			(71		)	71			20
Increase in cash and equivalents	12			—			—			12
Beginning cash and equivalents	37			19			—			56
Ending cash and equivalents	$	49		$	19		$	—		$	68

	Nine Months Ended October 27, 2012
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	Restated (in millions)
Operating activities:
Net cash (used in) provided by operating activities	$	(22	)	$	109		$	(74	)	$	13
Investing activities:
Cash paid for property and equipment	(66		)	(19		)	—			(85		)
Net cash used in investing activities	(66		)	(19		)	—			(85		)
Financing activities:
Net repayments of long term debt	(123		)	—			—			(123		)
Intercompany dividends	—			(74		)	74			—
Other financing activities	(14		)	(1		)	—			(15		)
Net cash used in financing activities	(137		)	(75		)	74			(138		)
Decrease in cash and equivalents	(225		)	15			—			(210		)
Beginning cash and equivalents	363			8			—			371
Ending cash and equivalents	$	138		$	23		$	—		$	161