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GUARANTOR AND NON-GUARANTOR SUBSIDIARIES
12 Months Ended
Feb. 02, 2013
GUARANTOR AND NON-GUARANTOR SUBSIDIARIES  
GUARANTOR AND NON-GUARANTOR SUBSIDIARIES

19. GUARANTOR AND NON-GUARANTOR SUBSIDIARIES

        Certain debt obligations of the Company, which constitute debt obligations of the Issuer, are guaranteed by the Parent and by each of its subsidiaries, other than the Issuer, that is an Obligor under the Company's Second Amended Revolving Credit Facility. Separate financial statements of the Parent, the Issuer and such subsidiary guarantors are not presented because the guarantees by the Parent and each wholly owned subsidiary guarantor are joint and several, full and unconditional, except for certain customary limitations which are applicable only to a subsidiary guarantor. These customary limitations include releases of a guarantee (1) if the subsidiary guarantor no longer guarantees other indebtedness of the Issuer; (2) if there is a sale or other disposition of the capital stock of a subsidiary guarantor and if such sale complies with the covenant regarding asset sales; and (3) if the subsidiary guarantor is properly designated as an "unrestricted subsidiary."

        The condensed consolidating financial information for the Parent, the Issuer and the guarantor and non-guarantor subsidiaries as of February 2, 2013 and January 28, 2012 and for 2012, 2011 and 2010 as presented below has been prepared from the books and records maintained by the Parent, 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.

        On December 31, 2012, The Elder-Beerman Stores Corp. (a guarantor subsidiary) was merged with and into the Issuer, with the Issuer as the surviving corporation. Subsequently, the Issuer contributed three stores to Carson Pirie Scott II, Inc. (a guarantor subsidiary), which then contributed those same stores to McRIL, LLC (a guarantor subsidiary). For comparative purposes, the condensed consolidating financial information as presented below has been retrospectively adjusted as if the activity described above occurred at the beginning of each period presented.

The Bon-Ton Stores, Inc.
Condensed Consolidating Balance Sheet
February 2, 2013

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Assets

                                     

Current assets:

                                     

Cash and cash equivalents

  $ 1   $ 3,414   $ 4,511   $   $   $ 7,926  

Merchandise inventories

        493,780     264,620             758,400  

Prepaid expenses and other current assets

        62,855     4,414     3,910     (578 )   70,601  
                           

Total current assets

    1     560,049     273,545     3,910     (578 )   836,927  
                           

Property, fixtures and equipment at cost, net

        221,966     179,437     251,419         652,822  

Deferred income taxes

        6,216     8,794             15,010  

Intangible assets, net

        36,666     73,897             110,563  

Investment in and advances to (from) affiliates

    110,605     366,851     328,183     (52 )   (805,587 )    

Other long-term assets

        17,389     343     1,155         18,887  
                           

Total assets

  $ 110,606   $ 1,209,137   $ 864,199   $ 256,432   $ (806,165 ) $ 1,634,209  
                           

Liabilities and Shareholders' Equity

                                     

Current liabilities:

                                     

Accounts payable

  $   $ 193,898   $   $   $   $ 193,898  

Accrued payroll and benefits

        26,899     5,511             32,410  

Accrued expenses

        86,686     79,350     78     (578 )   165,536  

Current maturities of long-term debt and obligations under capital leases

        69,874     3,034     6,903         79,811  

Deferred income taxes

        9,777     10,479             20,256  

Income taxes payable

        12     727             739  
                           

Total current liabilities

        387,146     99,101     6,981     (578 )   492,650  
                           

Long-term debt and obligations under capital leases, less current maturities

        555,532     46,279     219,531         821,342  

Other long-term liabilities

        155,208     52,815     1,588         209,611  
                           

Total liabilities

        1,097,886     198,195     228,100     (578 )   1,523,603  
                           

Shareholders' equity

    110,606     111,251     666,004     28,332     (805,587 )   110,606  
                           

Total liabilities and shareholders' equity

  $ 110,606   $ 1,209,137   $ 864,199   $ 256,432   $ (806,165 ) $ 1,634,209  
                           


The Bon-Ton Stores, Inc.
Condensed Consolidating Balance Sheet
January 28, 2012

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Assets

                                     

Current assets:

                                     

Cash and cash equivalents

  $ 1   $ 4,695   $ 9,576   $   $   $ 14,272  

Merchandise inventories

        447,581     251,923             699,504  

Prepaid expenses and other current assets

        59,637     9,238     547     (390 )   69,032  
                           

Total current assets

    1     511,913     270,737     547     (390 )   782,808  
                           

Property, fixtures and equipment at cost, net

        215,913     194,054     267,166         677,133  

Deferred income taxes

        3,982     8,403             12,385  

Intangible assets, net

        40,358     78,807             119,165  

Investment in and advances to affiliates

    131,606     377,086     246,130     1,103     (755,925 )    

Other long-term assets

        22,534     823     3,355         26,712  
                           

Total assets

  $ 131,607   $ 1,171,786   $ 798,954   $ 272,171   $ (756,315 ) $ 1,618,203  
                           

Liabilities and Shareholders' Equity

                                     

Current liabilities:

                                     

Accounts payable

  $   $ 205,492   $   $   $   $ 205,492  

Accrued payroll and benefits

        26,654     4,982             31,636  

Accrued expenses

        92,619     68,620     2,006     (390 )   162,855  

Current maturities of long-term debt and obligations under capital leases

        1,568     2,797     8,066         12,431  

Deferred income taxes

        6,794     9,437             16,231  
                           

Total current liabilities

        333,127     85,836     10,072     (390 )   428,645  
                           

Long-term debt and obligations under capital leases, less current maturities

        590,557     49,555     230,836         870,948  

Other long-term liabilities

        145,955     39,571     1,477         187,003  
                           

Total liabilities

        1,069,639     174,962     242,385     (390 )   1,486,596  
                           

Shareholders' equity

    131,607     102,147     623,992     29,786     (755,925 )   131,607  
                           

Total liabilities and shareholders' equity

  $ 131,607   $ 1,171,786   $ 798,954   $ 272,171   $ (756,315 ) $ 1,618,203  
                           

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Operations
2012

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net sales

  $   $ 1,697,211   $ 1,222,200   $   $   $ 2,919,411  

Other income

        33,379     26,046             59,425  
                           

 

        1,730,590     1,248,246             2,978,836  

Costs and expenses:

                                     

Costs of merchandise sold

        1,095,635     778,255             1,873,890  

Selling, general and administrative

        567,907     399,362     (3,458 )   (27,636 )   936,175  

Depreciation and amortization

        42,168     35,024     11,084         88,276  

Amortization of lease-related interests

        1,952     2,744             4,696  

Impairment charges

        423     5,377             5,800  
                           

Income (loss) from operations

        22,505     27,484     (7,626 )   27,636     69,999  

Other income (expense):

                                     

Intercompany rental and royalty income

            120     27,516     (27,636 )    

Equity in (losses) earnings of subsidiaries

    (21,325 )   21,761             (436 )    

Interest expense, net

        (58,275 )   (9,377 )   (15,187 )       (82,839 )

Loss on exchange/extinguishment of debt

        (7,316 )       (1,169 )       (8,485 )
                           

(Loss) income before income taxes

    (21,325 )   (21,325 )   18,227     3,534     (436 )   (21,325 )

Income tax provision

    228     228     1,215         (1,443 )   228  
                           

Net (loss) income

  $ (21,553 ) $ (21,553 ) $ 17,012   $ 3,534   $ 1,007   $ (21,553 )
                           


The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Comprehensive (Loss) Income
2012

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net (loss) income

  $ (21,553 ) $ (21,553 ) $ 17,012   $ 3,534   $ 1,007   $ (21,553 )

Other comprehensive income, net of tax:

                                     

Pension and postretirement benefit plans

    1,114     1,114             (1,114 )   1,114  
                           

Other comprehensive income

    1,114     1,114             (1,114 )   1,114  
                           

Comprehensive (loss) income

  $ (20,439 ) $ (20,439 ) $ 17,012   $ 3,534   $ (107 ) $ (20,439 )
                           


The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Operations
2011

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net sales

  $   $ 1,683,970   $ 1,200,691   $   $   $ 2,884,661  

Other income

        38,333     30,536             68,869  
                           

 

        1,722,303     1,231,227             2,953,530  

Costs and expenses:

                                     

Costs of merchandise sold

        1,083,018     764,351             1,847,369  

Selling, general and administrative

        576,164     395,048     80     (35,232 )   936,060  

Depreciation and amortization

        43,359     40,506     11,168         95,033  

Amortization of lease-related interests

        2,293     2,454             4,747  

Impairment charges

        1,050     2,640             3,690  
                           

Income (loss) from operations

        16,419     26,228     (11,248 )   35,232     66,631  

Other income (expense):

                                     

Intercompany rental and royalty income

            6,844     28,388     (35,232 )    

Equity in (losses) earnings of subsidiaries

    (14,147 )   25,134             (10,987 )    

Interest expense, net

        (64,429 )   (9,223 )   (15,855 )       (89,507 )

Gain on extinguishment of debt

        8,729                 8,729  
                           

(Loss) income before income taxes

    (14,147 )   (14,147 )   23,849     1,285     (10,987 )   (14,147 )

Income tax (benefit) provision

    (2,019 )   (2,019 )   21         1,998     (2,019 )
                           

Net (loss) income

  $ (12,128 ) $ (12,128 ) $ 23,828   $ 1,285   $ (12,985 ) $ (12,128 )
                           


The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Comprehensive (Loss) Income
2011

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net (loss) income

  $ (12,128 ) $ (12,128 ) $ 23,828   $ 1,285   $ (12,985 ) $ (12,128 )

Other comprehensive loss, net of tax:

                                     

Pension and postretirement benefit plans

    (35,839 )   (35,839 )           35,839     (35,839 )

Cash flow derivatives

    (2,019 )   (2,019 )           2,019     (2,019 )
                           

Other comprehensive loss

    (37,858 )   (37,858 )           37,858     (37,858 )
                           

Comprehensive (loss) income

  $ (49,986 ) $ (49,986 ) $ 23,828   $ 1,285   $ 24,873   $ (49,986 )
                           

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Operations
2010

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net sales

  $   $ 1,742,114   $ 1,238,365   $   $   $ 2,980,479  

Other income

        37,960     28,046             66,006  
                           

 

        1,780,074     1,266,411             3,046,485  

Costs and expenses:

                                     

Costs of merchandise sold

        1,089,366     770,816             1,860,182  

Selling, general and administrative

        586,235     392,411     96     (36,082 )   942,660  

Depreciation and amortization

        48,952     41,816     11,434         102,202  

Amortization of lease-related interests

        2,474     2,081             4,555  

Impairment charges

        1,175     563             1,738  
                           

Income (loss) from operations

        51,872     58,724     (11,530 )   36,082     135,148  

Other income (expense):

                                     

Intercompany rental and royalty income

            7,694     28,388     (36,082 )    

Equity in earnings of subsidiaries

    22,847     55,505             (78,352 )    

Interest expense, net

        (84,530 )   (11,447 )   (16,324 )       (112,301 )
                           

Income before income taxes

    22,847     22,847     54,971     534     (78,352 )   22,847  

Income tax provision

    1,353     1,353     1,007         (2,360 )   1,353  
                           

Net income

  $ 21,494   $ 21,494   $ 53,964   $ 534   $ (75,992 ) $ 21,494  
                           

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Comprehensive Income
2010

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net income

  $ 21,494   $ 21,494   $ 53,964   $ 534   $ (75,992 ) $ 21,494  

Other comprehensive income, net of tax:

                                     

Pension and postretirement benefit plans

    12,824     12,824             (12,824 )   12,824  

Cash flow derivatives

    3,590     3,590             (3,590 )   3,590  
                           

Other comprehensive income

    16,414     16,414             (16,414 )   16,414  
                           

Comprehensive income

  $ 37,908   $ 37,908   $ 53,964   $ 534   $ (92,406 ) $ 37,908  
                           

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Cash Flows
2012

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net cash provided by operating activities

  $ 6,515   $ 52,848   $ 15,907   $ 7,959   $ (9,959 ) $ 73,270  
                           

Cash flows from investing activities:

                                     

Capital expenditures

        (55,835 )   (17,935 )           (73,770 )

Intercompany investing activity

    (538 )   (1,867 )           2,405      

Proceeds from sale of property, fixtures and equipment

        31     3     8,234         8,268  
                           

Net cash (used in) provided by investing activities

    (538 )   (57,671 )   (17,932 )   8,234     2,405     (65,502 )
                           

Cash flows from financing activities:

                                     

Payments on long-term debt and capital lease obligations

        (717,119 )   (3,040 )   (13,494 )       (733,653 )

Proceeds from issuance of long-term debt

        750,401                 750,401  

Intercompany financing activity

        (4,855 )       (2,699 )   7,554      

Cash dividends paid

    (4,855 )                   (4,855 )

Restricted shares forfeited in lieu of payroll taxes

    (1,660 )                   (1,660 )

Proceeds from stock options exercised

    538                     538  

Deferred financing costs paid

        (1,135 )               (1,135 )

Debt exchange costs paid

        (6,992 )               (6,992 )

Decrease in book overdraft balances

        (16,758 )               (16,758 )
                           

Net cash (used in) provided by financing activities

    (5,977 )   3,542     (3,040 )   (16,193 )   7,554     (14,114 )
                           

Net decrease in cash and cash equivalents

        (1,281 )   (5,065 )           (6,346 )
                           

Cash and cash equivalents at beginning of period

    1     4,695     9,576             14,272  
                           

Cash and cash equivalents at end of period

  $ 1   $ 3,414   $ 4,511   $   $   $ 7,926  
                           

The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Cash Flows
2011

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net cash provided by operating activities

  $ 6,456   $ 64,431   $ 32,665   $ 13,347   $ (17,102 ) $ 99,797  
                           

Cash flows from investing activities:

                                     

Capital expenditures

        (42,843 )   (24,392 )           (67,235 )

Intercompany investing activity

    (398 )   (13 )           411      

Proceeds from sale of property, fixtures and equipment

        365     2,308     108         2,781  
                           

Net cash (used in) provided by investing activities

    (398 )   (42,491 )   (22,084 )   108     411     (64,454 )
                           

Cash flows from financing activities:

                                     

Payments on long-term debt and capital lease obligations

        (796,564 )   (2,596 )   (6,978 )       (806,138 )

Proceeds from issuance of long-term debt

        773,906                 773,906  

Intercompany financing activity

        (2,872 )   (7,342 )   (6,477 )   16,691      

Cash dividends paid

    (2,872 )                   (2,872 )

Restricted shares forfeited in lieu of payroll taxes

    (3,584 )                   (3,584 )

Proceeds from stock options exercised

    398                     398  

Deferred financing costs paid

        (5,931 )               (5,931 )

Increase in book overdraft balances

        6,811                 6,811  
                           

Net cash used in financing activities

    (6,058 )   (24,650 )   (9,938 )   (13,455 )   16,691     (37,410 )
                           

Net (decrease) increase in cash and cash equivalents

        (2,710 )   643             (2,067 )
                           

Cash and cash equivalents at beginning of period

    1     7,405     8,933             16,339  
                           

Cash and cash equivalents at end of period

  $ 1   $ 4,695   $ 9,576   $   $   $ 14,272  
                           


The Bon-Ton Stores, Inc.
Condensed Consolidating Statement of Cash Flows
2010

 
  Parent   Issuer   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Eliminations
  Company
Consolidated
 

Net cash provided by operating activities

  $ 4,107   $ 106,814   $ 31,479   $ 14,720   $ (15,985 ) $ 141,135  
                           

Cash flows from investing activities:

                                     

Capital expenditures

        (27,522 )   (18,746 )           (46,268 )

Intercompany investing activity

        (35 )           35      

Proceeds from sale of property, fixtures and equipment

        2,570     33             2,603  
                           

Net cash used in investing activities

        (24,987 )   (18,713 )       35     (43,665 )
                           

Cash flows from financing activities:

                                     

Payments on long-term debt and capital lease obligations

        (701,953 )   (2,409 )   (6,509 )       (710,871 )

Proceeds from issuance of long-term debt

        610,375                 610,375  

Intercompany financing activity

            (7,739 )   (8,211 )   15,950      

Restricted shares forfeited in lieu of payroll taxes

    (4,107 )                   (4,107 )

Deferred financing costs paid

        (717 )               (717 )

Increase in book overdraft balances

        5,267                 5,267  
                           

Net cash used in financing activities

    (4,107 )   (87,028 )   (10,148 )   (14,720 )   15,950     (100,053 )
                           

Net (decrease) increase in cash and cash equivalents

        (5,201 )   2,618             (2,583 )
                           

Cash and cash equivalents at beginning of period

    1     12,606     6,315             18,922  
                           

Cash and cash equivalents at end of period

  $ 1   $ 7,405   $ 8,933   $   $   $ 16,339