Guarantor and Non-Guarantor Subsidiaries

6 Months Ended

Jul. 30, 2011

Guarantor And Non -Guarantor Subsidiaries [Abstract]

GUARANTOR AND NON-GUARANTOR SUBSIDIARIES

13. GUARANTOR AND NON-GUARANTOR SUBSIDIARIES

On March 6, 2006, The Bon-Ton Department Stores, Inc. (the “Issuer”), a wholly owned subsidiary of the Company, entered into an Indenture with The Bank of New York, as trustee, under which the Issuer issued $510,000 aggregate principal amount of its 10-1/4% Senior Notes due 2014. The Notes are guaranteed on a senior unsecured basis by the Company and by each of the Company’s subsidiaries, other than the Issuer, that is an Obligor under the Company’s senior secured credit facility. The guarantees are full and unconditional and joint and several.

The condensed consolidating financial information for the Company, the Issuer and the Company’s guarantor and non-guarantor subsidiaries as of July 30, 2011 and January 29, 2011 and for the second quarter in each of 2011 and 2010 and the 26 weeks ended July 30, 2011 and July 31, 2010 as presented below has been prepared from the books and records maintained by the Company, the Issuer and the guarantor and non-guarantor subsidiaries. The condensed financial information may not necessarily be indicative of the results of operations or financial position had the guarantor and non-guarantor subsidiaries operated as independent entities. Certain intercompany revenues and expenses included in the subsidiary records are eliminated in consolidation. As a result of this activity, an amount due to/due from affiliates will exist at any time.

The Bon-Ton Stores, Inc.
Condensed Consolidating Balance Sheet
July 30, 2011

	Bon-Ton
	(Parent				Guarantor		Non-Guarantor		Consolidating			Company
	Company)		Issuer		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1	$	3,034	$	10,414	$	—	$	—		$	13,449
Merchandise inventories		—		368,807		320,071		—		—			688,878
Prepaid expenses and other current assets		—		57,164		12,740		580		(534	)		69,950
Total current assets		1		429,005		343,225		580		(534	)		772,277
Property, fixtures and equipment at cost, net		—		182,935		225,648		272,685		—			681,268
Deferred income taxes		—		4,509		6,284		—		—			10,793
Intangible assets, net		—		52,879		73,005		—		—			125,884
Investment in and advances to affiliates		111,581		454,756		212,280		316		(778,933	)		—
Other long-term assets		—		26,286		1,095		3,971		—			31,352
Total assets	$	111,582	$	1,150,370	$	861,537	$	277,552	$	(779,467	)	$	1,621,574
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	—	$	229,456	$	—	$	—	$	—		$	229,456
Accrued payroll and benefits		—		20,830		8,593		—		—			29,423
Accrued expenses		—		72,226		79,631		1,281		(534	)		152,604
Current maturities of long-term debt and obligations under capital leases		—		2,669		2,695		7,184		—			12,548
Deferred income taxes		—		6,925		7,829		—		—			14,754
Income taxes payable		—		490		14		—		—			504
Total current liabilities		—		332,596		98,762		8,465		(534	)		439,289
Long-term debt and obligations under capital leases, less current maturities		—		641,803		50,980		235,207		—			927,990
Other long-term liabilities		—		91,227		50,060		1,426		—			142,713
Total liabilities		—		1,065,626		199,802		245,098		(534	)		1,509,992
Shareholders’ equity		111,582		84,744		661,735		32,454		(778,933	)		111,582
Total liabilities and shareholders’ equity	$	111,582	$	1,150,370	$	861,537	$	277,552	$	(779,467	)	$	1,621,574

The Bon-Ton Stores, Inc.
Condensed Consolidating Balance Sheet
January 29, 2011

	Bon-Ton
	(Parent				Guarantor		Non-Guarantor		Consolidating			Company
	Company)		Issuer		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1	$	5,841	$	10,497	$	—	$	—		$	16,339
Merchandise inventories		—		340,649		341,675		—		—			682,324
Prepaid expenses and other current assets		—		65,500		12,752		628		(462	)		78,418
Total current assets		1		411,990		364,924		628		(462	)		777,081
Property, fixtures and equipment at cost, net		—		194,874		230,138		278,420		—			703,432
Deferred income taxes		—		3,705		5,882		—		—			9,587
Intangible assets, net		—		54,954		75,126		—		—			130,080
Investment in and advances to affiliates		183,351		480,419		208,096		316		(872,182	)		—
Other long-term assets		—		30,337		1,594		4,128		—			36,059
Total assets	$	183,352	$	1,176,279	$	885,760	$	283,492	$	(872,644	)	$	1,656,239
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	—	$	175,249	$	—	$	—	$	—		$	175,249
Accrued payroll and benefits		—		37,796		7,973		—		—			45,769
Accrued expenses		—		77,743		88,663		1,260		(462	)		167,204
Current maturities of long-term debt and obligations under capital leases		—		3,229		2,596		6,978		—			12,803
Deferred income taxes		—		5,748		6,961		—		—			12,709
Income taxes payable		—		46		91		—		—			137
Total current liabilities		—		299,811		106,284		8,238		(462	)		413,871
Long-term debt and obligations under capital leases, less current maturities		—		626,475		52,353		238,902		—			917,730
Other long-term liabilities		—		94,425		45,487		1,374		—			141,286
Total liabilities		—		1,020,711		204,124		248,514		(462	)		1,472,887
Shareholders’ equity		183,352		155,568		681,636		34,978		(872,182	)		183,352
Total liabilities and shareholders’ equity	$	183,352	$	1,176,279	$	885,760	$	283,492	$	(872,644	)	$	1,656,239

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Operations
Thirteen Weeks Ended July 30, 2011

	Bon-Ton
	(Parent						Guarantor			Non-Guarantor			Consolidating			Company
	Company)			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	258,455		$	337,025		$	—		$	—		$	595,480
Other income		—			5,625			8,165			—			—			13,790
		—			264,080			345,190			—			—			609,270
Costs and expenses:
Costs of merchandise sold		—			162,496			211,422			—			—			373,918
Selling, general and administrative		—			100,187			128,178			27			(8,606	)		219,786
Depreciation and amortization		—			10,119			13,307			2,795			—			26,221
Amortization of lease-related interests		—			617			577			—			—			1,194
Loss from operations		—			(9,339	)		(8,294	)		(2,822	)		8,606			(11,849	)
Other income (expense):
Intercompany rental and royalty income		—			—			1,490			7,116			(8,606	)		—
Equity in losses of subsidiaries		(34,611	)		(9,457	)		—			—			44,068			—
Interest expense, net		—			(15,815	)		(2,967	)		(3,980	)		—			(22,762	)
(Loss) income before income taxes		(34,611	)		(34,611	)		(9,771	)		314			44,068			(34,611	)
Income tax (benefit) provision		(2,311	)		(2,311	)		339			—			1,972			(2,311	)
Net (loss) income	$	(32,300	)	$	(32,300	)	$	(10,110	)	$	314		$	42,096		$	(32,300	)

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Operations
Thirteen Weeks Ended July 31, 2010

	Bon-Ton
	(Parent						Guarantor			Non-Guarantor			Consolidating			Company
	Company)			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	264,055		$	344,541		$	—		$	—		$	608,596
Other income		—			5,732			8,292			—			—			14,024
		—			269,787			352,833			—			—			622,620
Costs and expenses:
Costs of merchandise sold		—			163,335			213,816			—			—			377,151
Selling, general and administrative		—			102,465			130,370			25			(8,697	)		224,163
Depreciation and amortization		—			10,425			13,168			2,923			—			26,516
Amortization of lease-related interests		—			661			486			—			—			1,147
Loss from operations		—			(7,099	)		(5,007	)		(2,948	)		8,697			(6,357	)
Other income (expense):
Intercompany rental and royalty income		—			—			1,581			7,116			(8,697	)		—
Equity in losses of subsidiaries		(34,534	)		(6,978	)		—			—			41,512			—
Interest expense, net		—			(20,457	)		(3,626	)		(4,094	)		—			(28,177	)
(Loss) income before income taxes		(34,534	)		(34,534	)		(7,052	)		74			41,512			(34,534	)
Income tax (benefit) provision		(804	)		(804	)		340			—			464			(804	)
Net (loss) income	$	(33,730	)	$	(33,730	)	$	(7,392	)	$	74		$	41,048		$	(33,730	)

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Operations
Twenty-Six Weeks Ended July 30, 2011

	Bon-Ton
	(Parent						Guarantor			Non-Guarantor			Consolidating			Company
	Company)			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	540,684		$	704,677		$	—		$	—		$	1,245,361
Other income		—			11,655			16,735			—			—			28,390
		—			552,339			721,412			—			—			1,273,751
Costs and expenses:
Costs of merchandise sold		—			344,469			448,716			—			—			793,185
Selling, general and administrative		—			201,164			257,987			52			(17,378	)		441,825
Depreciation and amortization		—			19,405			25,594			5,735			—			50,734
Amortization of lease-related interests		—			1,234			1,155			—			—			2,389
Loss from operations		—			(13,933	)		(12,040	)		(5,787	)		17,378			(14,382	)
Other income (expense):
Intercompany rental and royalty income		—			—			3,075			14,303			(17,378	)		—
Equity in losses of subsidiaries		(69,899	)		(14,375	)		—			—			84,274			—
Interest expense, net		—			(32,141	)		(5,942	)		(7,984	)		—			(46,067	)
Loss on extinguishment of debt		—			(9,450	)		—			—			—			(9,450	)
(Loss) income before income taxes		(69,899	)		(69,899	)		(14,907	)		532			84,274			(69,899	)
Income tax (benefit) provision		(1,611	)		(1,611	)		704			—			907			(1,611	)
Net (loss) income	$	(68,288	)	$	(68,288	)	$	(15,611	)	$	532		$	83,367		$	(68,288	)

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Operations
Twenty-Six Weeks Ended July 31, 2010

	Bon-Ton
	(Parent						Guarantor			Non-Guarantor			Consolidating			Company
	Company)			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	551,166		$	718,803		$	—		$	—		$	1,269,969
Other income		—			11,323			16,539			—			—			27,862
		—			562,489			735,342			—			—			1,297,831
Costs and expenses:
Costs of merchandise sold		—			342,405			449,086			—			—			791,491
Selling, general and administrative		—			207,062			262,501			49			(17,536	)		452,076
Depreciation and amortization		—			20,847			26,049			5,844			—			52,740
Amortization of lease-related interests		—			1,323			970			—			—			2,293
Loss from operations		—			(9,148	)		(3,264	)		(5,893	)		17,536			(769	)
Other income (expense):
Intercompany rental and royalty income		—			—			3,233			14,303			(17,536	)		—
Equity in losses of subsidiaries		(57,459	)		(7,090	)		—			—			64,549			—
Interest expense, net		—			(41,221	)		(7,251	)		(8,218	)		—			(56,690	)
(Loss) income before income taxes		(57,459	)		(57,459	)		(7,282	)		192			64,549			(57,459	)
Income tax (benefit) provision		(187	)		(187	)		654			—			(467	)		(187	)
Net (loss) income	$	(57,272	)	$	(57,272	)	$	(7,936	)	$	192		$	65,016		$	(57,272	)

The Bon-Ton Stores, Inc.

Condensed Consolidating Statement of Cash Flows

Twenty-Six Weeks Ended July 30, 2011

	Bon-Ton
	(Parent						Guarantor			Non-Guarantor			Consolidating			Company
	Company)			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	4,531		$	18,957		$	17,869		$	6,546		$	(8,682	)	$	39,221
Cash flows from investing activities:
Capital expenditures		—			(14,266	)		(12,400	)		—			—			(26,666	)
Intercompany investing activity		(385	)		(4	)		—			—			389			—
Proceeds from sale of property, fixtures and equipment		—			123			11			—			—			134
Net cash used in investing activities		(385	)		(14,147	)		(12,389	)		—			389			(26,532	)
Cash flows from financing activities:
Payments on long-term debt and capital lease obligations		—			(337,394	)		(1,274	)		(3,489	)		—			(342,157	)
Proceeds from issuance of long-term debt		—			348,398			—			—			—			348,398
Intercompany financing activity		—			(947	)		(4,289	)		(3,057	)		8,293			—
Cash dividends paid		(947	)		—			—			—			—			(947	)
Restricted shares forfeited in lieu of payroll taxes		(3,584	)		—			—			—			—			(3,584	)
Proceeds from stock options exercised		385			—			—			—			—			385
Deferred financing costs paid		—			(5,869	)		—			—			—			(5,869	)
Decrease in book overdraft balances		—			(11,805	)		—			—			—			(11,805	)
Net cash used in financing activities		(4,146	)		(7,617	)		(5,563	)		(6,546	)		8,293			(15,579	)
Net decrease in cash and cash equivalents		—			(2,807	)		(83	)		—			—			(2,890	)
Cash and cash equivalents at beginning of period		1			5,841			10,497			—			—			16,339
Cash and cash equivalents at end of period	$	1		$	3,034		$	10,414		$	—		$	—		$	13,449

The Bon-Ton Stores, Inc.

Condensed Consolidating Statement of Cash Flows

Twenty-Six Weeks Ended July 31, 2010

	Bon-Ton
	(Parent						Guarantor			Non-Guarantor			Consolidating			Company
	Company)			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	4,082		$	26,969		$	15,349		$	8,320		$	(9,538	)	$	45,182
Cash flows from investing activities:
Capital expenditures		—			(9,652	)		(10,453	)		—			—			(20,105	)
Intercompany investing activity		—			(29	)		—			—			29			—
Proceeds from sale of property, fixtures and equipment		—			9			14			—			—			23
Net cash used in investing activities		—			(9,672	)		(10,439	)		—			29			(20,082	)
Cash flows from financing activities:
Payments on long-term debt and capital lease obligations		—			(300,953	)		(1,182	)		(3,260	)		—			(305,395	)
Proceeds from issuance of long-term debt		—			280,094			—			—			—			280,094
Intercompany financing activity		—			—			(4,449	)		(5,060	)		9,509			—
Restricted shares forfeited in lieu of payroll taxes		(4,082	)		—			—			—			—			(4,082	)
Deferred financing costs paid		—			(714	)		—			—			—			(714	)
Increase in book overdraft balances		—			1,357			—			—			—			1,357
Net cash used in financing activities		(4,082	)		(20,216	)		(5,631	)		(8,320	)		9,509			(28,740	)
Net decrease in cash and cash equivalents		—			(2,919	)		(721	)		—			—			(3,640	)
Cash and cash equivalents at beginning of period		1			9,962			8,959			—			—			18,922
Cash and cash equivalents at end of period	$	1		$	7,043		$	8,238		$	—		$	—		$	15,282