Condensed Guarantor Data (Tables)

6 Months Ended

Aug. 03, 2013

Condensed Consolidating Balance Sheets

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)

	As of August 3, 2013
	The Gymboree Corporation		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	8,774	$	5,757	$	12,300	$	—		$	26,831
Accounts receivable, net of allowance		406		24,267		2,243		—			26,916
Merchandise inventories		—		208,703		6,273		5			214,981
Prepaid income taxes		2,347		471		1,219		—			4,037
Prepaid expenses		2,994		13,572		1,515		—			18,081
Deferred income taxes		19,277		16,284		817		—			36,378
Intercompany receivable		—		490,096		—		(490,096	)		—
Total current assets		33,798		759,150		24,367		(490,091	)		327,224
Property and Equipment, net		13,895		182,859		9,706		—			206,460
Goodwill		—		859,165		39,818		—			898,983
Other Intangible Assets		—		577,282		500		—			577,782
Deferred Financing Costs		36,819		—		—		—			36,819
Other Assets		17,946		2,047		5,732		(17,432	)		8,293
Investment in Subsidiaries		1,987,315		—		—		(1,987,315	)		—
Total Assets	$	2,089,773	$	2,380,503	$	80,123	$	(2,494,838	)	$	2,055,561
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	8,563	$	91,335	$	896	$	—		$	100,794
Accrued liabilities		29,870		57,936		6,141		—			93,947
Intercompany payable		478,737		—		11,354		(490,091	)		—
Total current liabilities		517,170		149,271		18,391		(490,091	)		194,741
Long-Term Liabilities:
Long-term debt		1,138,595		—		—		—			1,138,595
Lease incentives and other liabilities		4,552		43,812		6,059		—			54,423
Deferred income taxes		—		246,980		—		(17,432	)		229,548
Total Liabilities		1,660,317		440,063		24,450		(507,523	)		1,617,307
Total stockholders’ equity		429,456		1,940,440		46,875		(1,987,315	)		429,456
Noncontrolling interest		—		—		8,798		—			8,798
Total liabilities and stockholders’ equity	$	2,089,773	$	2,380,503	$	80,123	$	(2,494,838	)	$	2,055,561

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)

	As of February 2, 2013
	The Gymboree Corporation		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	18,431	$	3,128	$	11,769	$	—		$	33,328
Accounts receivable, net of allowance		1,280		23,679		2,583		—			27,542
Merchandise inventories		—		193,003		4,907		25			197,935
Prepaid income taxes		1,821		682		400		—			2,903
Prepaid expenses		3,142		12,909		1,290		—			17,341
Deferred income taxes		15,488		16,528		—		(633	)		31,383
Intercompany receivable		—		468,919		—		(468,919	)		—
Total current assets		40,162		718,848		20,949		(469,527	)		310,432
Property and Equipment, net		15,679		180,021		9,625		—			205,325
Goodwill		—		859,166		39,800		—			898,966
Other Intangible Assets		—		580,492		149		—			580,641
Deferred Financing Costs		40,040		—		—		—			40,040
Other Assets		15,409		2,061		7,067		(16,728	)		7,809
Investment in subsidiaries		1,976,277		—		—		(1,976,277	)		—
Total Assets	$	2,087,567	$	2,340,588	$	77,590	$	(2,462,532	)	$	2,043,213
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	14,269	$	74,589	$	1,275	$	—		$	90,133
Accrued liabilities		35,991		48,446		6,006		—			90,443
Deferred income taxes		—		—		633		(633	)		—
Intercompany payable		456,934		—		11,960		(468,894	)		—
Total current liabilities		507,194		123,035		19,874		(469,527	)		180,576
Long-Term Liabilities:
Long-term debt		1,138,455		—		—		—			1,138,455
Lease incentives and other liabilities		4,376		38,693		4,883		—			47,952
Deferred income taxes		—		250,427		894		(16,728	)		234,593
Total Liabilities		1,650,025		412,155		25,651		(486,255	)		1,601,576
Total stockholders’ equity		437,542		1,928,433		47,844		(1,976,277	)		437,542
Noncontrolling interest		—		—		4,095		—			4,095
Total liabilities and stockholders’ equity	$	2,087,567	$	2,340,588	$	77,590	$	(2,462,532	)	$	2,043,213

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)

	July 28, 2012
	The Gymboree Corporation		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	29,930	$	9,563	$	15,062	$	—		$	54,555
Accounts receivable, net of allowance		1,508		21,491		2,174		—			25,173
Merchandise inventories		—		215,794		4,310		105			220,209
Prepaid income taxes		3,727		679		889		—			5,295
Prepaid expenses		2,936		1,236		326		—			4,498
Deferred income taxes		29,180		12,320		—		(172	)		41,328
Intercompany receivable		—		425,880		—		(425,880	)		—
Total current assets		67,281		686,963		22,761		(425,947	)		351,058
Property and Equipment, net		17,249		176,594		8,792		—			202,635
Goodwill		—		859,297		39,800		—			899,097
Other Intangible Assets		—		589,772		171		—			589,943
Deferred Financing Costs		44,695		—		—		—			44,695
Other Assets		13,536		812		4,950		(14,292	)		5,006
Investment in Subsidiaries		1,941,856		—		—		(1,941,856	)		—
Total Assets	$	2,084,617	$	2,313,438	$	76,474	$	(2,382,095	)	$	2,092,434
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	3,796	$	80,570	$	598	$	—		$	84,964
Accrued liabilities		29,796		53,515		6,595		—			89,906
Deferred income taxes		—		—		169		(169	)		—
Intercompany payable		415,545		—		9,763		(425,308	)		—
Total current liabilities		449,137		134,085		17,125		(425,477	)		174,870
Long-Term Liabilities:
Long-term debt		1,192,312		—		—		—			1,192,312
Lease incentives and other liabilities		3,997		33,025		4,430		—			41,452
Deferred income taxes		—		254,277		—		(14,292	)		239,985
Total Liabilities		1,645,446		421,387		21,555		(439,769	)		1,648,619
Total Stockholders’ Equity		439,171		1,892,051		50,275		(1,942,326	)		439,171
Noncontrolling interest		—		—		4,644		—			4,644
Total Equity		439,171		1,892,051		54,919		(1,942,326	)		443,815
Total Liabilities and Stockholders’ Equity	$	2,084,617	$	2,313,438	$	76,474	$	(2,382,095	)	$	2,092,434

Condensed Consolidating Statements of Operations

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE 13 WEEKS ENDED AUGUST 3, 2013

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales:
Retail	$	471		$	270,242		$	15,401		$	(7,170	)	$	278,944
Gymboree Play & Music		—			2,557			3,703			—			6,260
Retail Franchise		—			5,712			—			—			5,712
Intercompany revenue		14,937			1,448			—			(16,385	)		—
Total net sales		15,408			279,959			19,104			(23,555	)		290,916
Cost of goods sold, including buying and occupancy expenses		(1,434	)		(178,427	)		(10,535	)		6,566			(183,830	)
Gross profit		13,974			101,532			8,569			(16,989	)		107,086
Selling, general and administrative expenses		(16,002	)		(94,098	)		(8,897	)		16,974			(102,023	)
Operating (loss) income		(2,028	)		7,434			(328	)		(15	)		5,063
Interest income		27			12			23			(1	)		61
Interest expense		(20,467	)		—			(1	)		1			(20,467	)
Other (expense) income, net		(119	)		(1	)		9			—			(111	)
(Loss) income before income taxes		(22,587	)		7,445			(297	)		(15	)		(15,454	)
Income tax benefit (expense)		12,680			(6,785	)		234			—			6,129
Equity in earnings of affiliates, net of tax		557			—			—			(557	)		—
Net (loss) income		(9,350	)		660			(63	)		(572	)		(9,325	)
Net income attributable to noncontrolling interest		—			—			(25	)		—			(25	)
Net (loss) income attributable to The Gymboree Corporation	$	(9,350	)	$	660		$	(88	)	$	(572	)	$	(9,350	)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE 13 WEEKS ENDED JULY 28, 2012

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales:
Retail	$	435		$	251,094		$	14,762		$	(7,177	)	$	259,114
Gymboree Play & Music		—			5,041			758			—			5,799
Retail Franchise		—			3,839			—			—			3,839
Intercompany revenue		11,898			545			1,658			(14,101	)		—
Total net sales		12,333			260,519			17,178			(21,278	)		268,752
Cost of goods sold, including buying and occupancy expenses		(1,335	)		(173,570	)		(11,076	)		6,417			(179,564	)
Gross profit		10,998			86,949			6,102			(14,861	)		89,188
Selling, general and administrative expenses		(13,133	)		(92,088	)		(5,349	)		14,975			(95,595	)
Operating (loss) income		(2,135	)		(5,139	)		753			114			(6,407	)
Interest income		22			—			23			—			45
Interest expense		(21,193	)		—			—			—			(21,193	)
Other (expense) income, net		(32	)		—			8			—			(24	)
(Loss) income before income taxes		(23,338	)		(5,139	)		784			114			(27,579	)
Income tax benefit (expense)		15,444			(3,209	)		1,278			—			13,513
Equity in loss of affiliates, net of tax		(5,374	)		—			—			5,374			—
Net (loss) income		(13,268	)		(8,348	)		2,062			5,488			(14,066	)
Net loss attributable to noncontrolling interest		—			—			798			—			798
Net (loss) income attributable to The Gymboree Corporation	$	(13,268	)	$	(8,348	)	$	2,860		$	5,488		$	(13,268	)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE 26 WEEKS ENDED AUGUST 3, 2013

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales:
Retail	$	922		$	544,023		$	28,365		$	(13,489	)	$	559,821
Gymboree Play & Music		—			5,324			7,264			—			12,588
Retail Franchise		—			11,290			—			—			11,290
Intercompany revenue		33,017			3,102			—			(36,119	)		—
Total net sales		33,939			563,739			35,629			(49,608	)		583,699
Cost of goods sold, including buying and occupancy expenses		(2,954	)		(345,164	)		(19,452	)		11,930			(355,640	)
Gross profit		30,985			218,575			16,177			(37,678	)		228,059
Selling, general and administrative expenses		(34,978	)		(191,748	)		(17,060	)		37,634			(206,152	)
Operating (loss) income		(3,993	)		26,827			(883	)		(44	)		21,907
Interest income		33			23			47			(1	)		102
Interest expense		(40,869	)		—			(1	)		1			(40,869	)
Other (expense) income, net		(224	)		(1	)		123			—			(102	)
(Loss) income before income taxes		(45,053	)		26,849			(714	)		(44	)		(18,962	)
Income tax benefit (expense)		22,078			(14,841	)		(448	)		—			6,789
Equity in earnings of affiliates, net of tax		11,089			—			—			(11,089	)		—
Net (loss) income		(11,886	)		12,008			(1,162	)		(11,133	)		(12,173	)
Net loss attributable to noncontrolling interest		—			—			287			—			287
Net (loss) income attributable to The Gymboree Corporation	$	(11,886	)	$	12,008		$	(875	)	$	(11,133	)	$	(11,886	)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE 26 WEEKS ENDED JULY 28, 2012

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales:
Retail	$	828		$	533,352		$	26,465		$	(13,415	)	$	547,230
Gymboree Play & Music		—			10,579			1,012			—			11,591
Retail Franchise		—			7,682			—			—			7,682
Intercompany revenue		23,693			1,315			3,459			(28,467	)		—
Total net sales		24,521			552,928			30,936			(41,882	)		566,503
Cost of goods sold, including buying and occupancy expenses		(2,669	)		(346,144	)		(19,036	)		12,358			(355,491	)
Gross profit		21,852			206,784			11,900			(29,524	)		211,012
Selling, general and administrative expenses		(25,650	)		(179,656	)		(11,461	)		29,433			(187,334	)
Operating (loss) income		(3,798	)		27,128			439			(91	)		23,678
Interest income		53			—			51			—			104
Interest expense		(42,851	)		—			—			—			(42,851	)
Loss on extinguishment of debt		(1,237	)		—			—			—			(1,237	)
Other expense, net		(51	)		(1	)		(38	)		—			(90	)
(Loss) income before income taxes		(47,884	)		27,127			452			(91	)		(20,396	)
Income tax benefit (expense)		25,633			(15,749	)		616			—			10,500
Equity in earnings of affiliates, net of tax		13,979			—			—			(13,979	)		—
Net (loss) income		(8,272	)		11,378			1,068			(14,070	)		(9,896	)
Net loss attributable to noncontrolling interest		—			—			1,624			—			1,624
Net (loss) income attributable to The Gymboree Corporation	$	(8,272	)	$	11,378		$	2,692		$	(14,070	)	$	(8,272	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE 13 WEEKS ENDED AUGUST 3, 2013

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(9,350	)	$	660	$	(63	)	$	(572	)	$	(9,325	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(420	)				(406	)		424			(402	)
Unrealized net gain on cash flow hedges, net of tax benefit of $435		1,615					345			(345	)		1,615
Total other comprehensive income (loss), net of tax		1,195			—		(61	)		79			1,213
Comprehensive (loss) income		(8,155	)		660		(124	)		(493	)		(8,112	)
Comprehensive income attributable to noncontrolling interest							(43	)		—			(43	)
Comprehensive (loss) income attributable to The Gymboree Corporation	$	(8,155	)	$	660	$	(167	)	$	(493	)	$	(8,155	)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE 13 WEEKS ENDED JULY 28, 2012

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Net (loss) income	$	(13,268	)	$	(8,348	)	$	2,062		$	5,488	$	(14,066	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		—			—			(30	)		—		(30	)
Unrealized net (loss) gain on cash flow hedges, net of tax benefit of $232		(550	)		—			214			—		(336	)
Total other comprehensive (loss) income, net of tax		(550	)		—			184			—		(366	)
Comprehensive (loss) income		(13,818	)		(8,348	)		2,246			5,488		(14,432	)
Comprehensive loss attributable to noncontrolling interest		—			—			842			—		842
Comprehensive (loss) income attributable to The Gymboree Corporation	$	(13,818	)	$	(8,348	)	$	3,088		$	5,488	$	(13,590	)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE 26 WEEKS ENDED AUGUST 3, 2013

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(11,886	)	$	12,008	$	(1,162	)	$	(11,133	)	$	(12,173	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(480	)				(445	)		502			(423	)
Unrealized net gain on cash flow hedges, net of tax benefit of $500		1,506					408			(408	)		1,506
Total other comprehensive income (loss), net of tax		1,026			—		(37	)		94			1,083
Comprehensive (loss) income		(10,860	)		12,008		(1,199	)		(11,039	)		(11,090	)
Comprehensive loss attributable to noncontrolling interest		—					230			—			230
Comprehensive (loss) income attributable to The Gymboree Corporation	$	(10,860	)	$	12,008	$	(969	)	$	(11,039	)	$	(10,860	)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE 26 WEEKS ENDED JULY 28, 2012

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(8,272	)	$	11,378	$	1,068		$	(14,070	)	$	(9,896	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		—			—		(59	)		—			(59	)
Unrealized net gain on cash flow hedges, net of tax benefit of $263		64			—		35			—			99
Total other comprehensive income (loss), net of tax		64			—		(24	)		—			40
Comprehensive (loss) income		(8,208	)		11,378		1,044			(14,070	)		(9,856	)
Comprehensive loss attributable to noncontrolling interest		—			—		1,656			—			1,656
Comprehensive (loss) income attributable to The Gymboree Corporation	$	(8,208	)	$	11,378	$	2,700		$	(14,070	)	$	(8,200	)

Condensed Consolidating Statements of Cash Flows

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE 26 WEEKS ENDED AUGUST 3, 2013

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(47,077	)	$	61,010		$	(3,343	)	$	—	$	10,590
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(1,048	)		(20,449	)		(1,731	)		—		(23,228	)
Other		—			11			(173	)		—		(162	)
Net cash used in investing activities		(1,048	)		(20,438	)		(1,904	)		—		(23,390	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany transfers		38,669			(37,944	)		(725	)		—		—
Dividend payment to parent		(201	)		—			—			—		(201	)
Capital contribution received by noncontrolling interest		—			—			6,506			—		6,506
Net cash provided by (used in) financing activities		38,468			(37,944	)		5,781			—		6,305
Effect of exchange rate fluctuations on cash and cash equivalents		—			1			(3	)		—		(2	)
Net (decrease) increase in cash and cash equivalents		(9,657	)		2,629			531			—		(6,497	)
CASH AND CASH EQUIVALENTS:
Beginning of Period		18,431			3,128			11,769			—		33,328
End of Period	$	8,774		$	5,757		$	12,300		$	—	$	26,831

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE 26 WEEKS ENDED JULY 28, 2012

(In thousands)

	The Gymboree Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(23,768	)	$	32,186		$	2,018		$	—		$	10,436
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(1,207	)		(16,428	)		(881	)		—			(18,516	)
Investment in subsidiaries		(180	)		—			—			180			—
Other		—			(116	)		(115	)		—			(231	)
Net cash used in investing activities		(1,387	)		(16,544	)		(996	)		180			(18,747	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany transfers		12,820			(12,466	)		(354	)		—			—
Payments on Term Loan		(17,698	)		—			—			—			(17,698	)
Payments of deferred financing costs		(1,347	)		—			—			—			(1,347	)
Investment by Parent		—			—			180			(180	)		—
Investment by affiliate of Parent		2,400			—									2,400
Capital contribution received by noncontrolling interest		—			—			1,595			—			1,595
Net cash (used in) provided by financing activities		(3,825	)		(12,466	)		1,421			(180	)		(15,050	)
Effect of exchange rate fluctuations on cash and cash equivalents		—			—			6			—			6
Net (decrease) increase in cash and cash equivalents		(28,980	)		3,176			2,449			—			(23,355	)
CASH AND CASH EQUIVALENTS:
Beginning of Period		58,910			6,387			12,613			—			77,910
End of Period	$	29,930		$	9,563		$	15,062		$	—		$	54,555