Supplemental Guarantor Financial Information

The Company’s 2019 Notes, 2020 Notes, 2021 Notes and 2022 Notes are jointly and severally guaranteed on a full and unconditional basis by certain of the Company’s 100% owned subsidiaries. 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 August 3, 2013, February 2, 2013 and July 28, 2012; and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended August 3, 2013 and July 28, 2012.

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)

(Unaudited)



	August 3, 2013
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	306		$	245		$	—		$	551
Accounts Receivable, Net	—			135			62			—			197
Inventories	—			983			144			—			1,127
Deferred Income Taxes	—			40			(10		)	—			30
Other	2			126			65			—			193
Total Current Assets	2			1,590			506			—			2,098
Property and Equipment, Net	—			1,136			824			—			1,960
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			412			—			—			412
Net Investments in and Advances to/from Consolidated Affiliates	3,495			15,221			742			(19,458		)	—
Other Assets	184			7			705			(612		)	284
Total Assets	$	3,681		$	19,684		$	2,777		$	(20,070	)	$	6,072
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	387		$	294		$	—		$	681
Accrued Expenses and Other	80			407			232			—			719
Income Taxes	—			68			17			—			85
Total Current Liabilities	80			862			543			—			1,485
Deferred Income Taxes	(4		)	(5		)	209			—			200
Long-term Debt	4,475			597			—			(597		)	4,475
Other Long-term Liabilities	4			577			206			(14		)	773
Total Equity (Deficit)	(874		)	17,653			1,819			(19,459		)	(861		)
Total Liabilities and Equity (Deficit)	$	3,681		$	19,684		$	2,777		$	(20,070	)	$	6,072

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)



	February 2, 2013
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	417		$	356		$	—		$	773
Accounts Receivable, Net	—			140			63			—			203
Inventories				847			157			—			1,004
Deferred Income Taxes	—			39			(10		)	—			29
Other	2			117			77			—			196
Total Current Assets	2			1,560			643			—			2,205
Property and Equipment, Net	—			1,001			802			—			1,803
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			1			—			412
Net Investments in and Advances to/from Consolidated Affiliates	3,348			13,968			624			(17,940		)	—
Other Assets	188			8			696			(611		)	281
Total Assets	$	3,538		$	18,266		$	2,766		$	(18,551	)	$	6,019
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	291		$	250		$	—		$	541
Accrued Expenses and Other	78			425			304			—			807
Income Taxes	1			134			55			—			190
Total Current Liabilities	79			850			609			—			1,538
Deferred Income Taxes	(4		)	(9		)	213			—			200
Long-term Debt	4,477			597			—			(597		)	4,477
Other Long-term Liabilities	4			625			204			(15		)	818
Total Equity (Deficit)	(1,018		)	16,203			1,740			(17,939		)	(1,014		)
Total Liabilities and Equity (Deficit)	$	3,538		$	18,266		$	2,766		$	(18,551	)	$	6,019

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)

(Unaudited)



	July 28, 2012
	L Brands, Inc.			Guarantor Subsidiaries		Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	623	$	570	$	—		$	1,193
Accounts Receivable, Net	—			113		62		—			175
Inventories	—			886		171		—			1,057
Deferred Income Taxes	—			33		18		—			51
Other	—			179		61		—			240
Total Current Assets	—			1,834		882		—			2,716
Property and Equipment, Net	—			971		804		—			1,775
Goodwill	—			1,318		12		—			1,330
Trade Names and Other Intangible Assets, Net	—			410		84		—			494
Net Investments in and Advances to/from Consolidated Affiliates	4,169			13,874		557		(18,600		)	—
Other Assets	194			44		684		(648		)	274
Total Assets	$	4,363		$	18,451	$	3,023	$	(19,248	)	$	6,589
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	4		$	366	$	254	$	—		$	624
Accrued Expenses and Other	77			392		243		—			712
Current Portion of Long-term Debt	57			—		—		—			57
Income Taxes	—			—		7		—			7
Total Current Liabilities	138			758		504		—			1,400
Deferred Income Taxes	(5		)	12		181		—			188
Long-term Debt	4,480			596		37		(633		)	4,480
Other Long-term Liabilities	4			583		193		(14		)	766
Total Equity (Deficit)	(254		)	16,502		2,108		(18,601		)	(245		)
Total Liabilities and Equity (Deficit)	$	4,363		$	18,451	$	3,023	$	(19,248	)	$	6,589

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2013
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,286		$	793		$	(563	)	$	2,516
Costs of Goods Sold, Buying and Occupancy	—			(1,415		)	(649		)	537			(1,527		)
Gross Profit	—			871			144			(26		)	989
General, Administrative and Store Operating Expenses	(1		)	(561		)	(98		)	29			(631		)
Operating Income (Loss)	(1		)	310			46			3			358
Interest Expense	(77		)	(6		)	(3		)	9			(77		)
Other Income (Loss)	—			3			1			(3		)	1
Income (Loss) Before Income Taxes	(78		)	307			44			9			282
Provision for Income Taxes	—			39			65			—			104
Equity in Earnings (Loss)	256			265			276			(797		)	—
Net Income (Loss)	$	178		$	533		$	255		$	(788	)	$	178

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2013
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	178	$	533	$	255		$	(788	)	$	178
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		(13		)	—			(13		)
Foreign Currency Translation	—		—		8			—			8
Unrealized Gain on Cash Flow Hedges	—		—		15			—			15
Total Other Comprehensive Income, Net of Tax	—		—		10			—			10
Total Comprehensive Income (Loss)	$	178	$	533	$	265		$	(788	)	$	188

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2012
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,190		$	678		$	(469	)	$	2,399
Costs of Goods Sold, Buying and Occupancy	—			(1,335		)	(582		)	460			(1,457		)
Gross Profit	—			855			96			(9		)	942
General, Administrative and Store Operating Expenses	(1		)	(556		)	(92		)	12			(637		)
Operating Income (Loss)	(1		)	299			4			3			305
Interest Expense	(79		)	(3		)	(3		)	6			(79		)
Other Income (Loss)	—			2			4			(3		)	3
Income (Loss) Before Income Taxes	(80		)	298			5			6			229
Provision for Income Taxes	—			46			40			—			86
Equity in Earnings (Loss)	223			37			(29		)	(231		)	—
Net Income (Loss)	$	143		$	289		$	(64	)	$	(225	)	$	143

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2012
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	143	$	289	$	(64	)	$	(225	)	$	143
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	1		—		(12		)	—			(11		)
Foreign Currency Translation	—		—		5			—			5
Unrealized Gain on Cash Flow Hedges	—		—		10			—			10
Total Other Comprehensive Income, Net of Tax	1		—		3			—			4
Total Comprehensive Income (Loss)	$	144	$	289	$	(61	)	$	(225	)	$	147

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2013
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	4,359		$	1,541		$	(1,116	)	$	4,784
Costs of Goods Sold, Buying and Occupancy	—			(2,661		)	(1,259		)	1,066			(2,854		)
Gross Profit	—			1,698			282			(50		)	1,930
General, Administrative and Store Operating Expenses	(3		)	(1,113		)	(198		)	53			(1,261		)
Operating Income (Loss)	(3		)	585			84			3			669
Interest Expense	(156		)	(12		)	(6		)	18			(156		)
Other Income (Loss)	—			5			4			(5		)	4
Income (Loss) Before Income Taxes	(159		)	578			82			16			517
Provision for Income Taxes	—			103			93			—			196
Equity in Earnings (Loss)	480			316			313			(1,109		)	—
Net Income (Loss)	$	321		$	791		$	302		$	(1,093	)	$	321

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2013
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	321	$	791	$	302		$	(1,093	)	$	321
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		(19		)	—			(19		)
Foreign Currency Translation	—		—		12			—			12
Unrealized Gain on Cash Flow Hedges	—		—		16			—			16
Total Other Comprehensive Income, Net of Tax	—		—		9			—			9
Total Comprehensive Income (Loss)	$	321	$	791	$	311		$	(1,093	)	$	330

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2012
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	4,184		$	1,307		$	(938	)	$	4,553
Costs of Goods Sold, Buying and Occupancy	—			(2,504		)	(1,108		)	903			(2,709		)
Gross Profit	—			1,680			199			(35		)	1,844
General, Administrative and Store Operating Expenses	(3		)	(1,100		)	(179		)	36			(1,246		)
Operating Income (Loss)	(3		)	580			20			1			598
Interest Expense	(157		)	(10		)	(5		)	15			(157		)
Other Income (Loss)	1			4			2			(6		)	1
Income (Loss) Before Income Taxes	(159		)	574			17			10			442
Provision for Income Taxes	—			112			62			—			174
Equity in Earnings (Loss)	427			(33		)	62			(456		)	—
Net Income (Loss)	$	268		$	429		$	17		$	(446	)	$	268

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2012
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	268	$	429	$	17		$	(446	)	$	268
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	2		—		(1		)	—			1
Foreign Currency Translation	—		—		1			—			1
Unrealized Gain on Cash Flow Hedges	—		—		7			—			7
Total Other Comprehensive Income, Net of Tax	2		—		7			—			9
Total Comprehensive Income (Loss)	$	270	$	429	$	24		$	(446	)	$	277

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2013
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(153	)	$	431		$	76		$	—	$	354
Investing Activities:
Capital Expenditures	—			(266		)	(117		)	—		(383		)
Other Investing Activities	—			—			2			—		2
Net Cash Used for Investing Activities	—			(266		)	(115		)	—		(381		)
Financing Activities:
Repurchase of Common Stock	(55		)	—			—			—		(55		)
Dividends Paid	(174		)	—			—			—		(174		)
Excess Tax Benefits from Share-based Compensation	—			21			4			—		25
Net Financing Activities and Advances to/from Consolidated Affiliates	372			(297		)	(75		)	—		—
Proceeds from Exercise of Stock Options and Other	10			—			—			—		10
Net Cash Provided by (Used for) Financing Activities	153			(276		)	(71		)	—		(194		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(1		)	—		(1		)
Net Decrease in Cash and Cash Equivalents	—			(111		)	(111		)	—		(222		)
Cash and Cash Equivalents, Beginning of Period	—			417			356			—		773
Cash and Cash Equivalents, End of Period	$	—		$	306		$	245		$	—	$	551

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2012
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(204	)	$	293		$	116		$	—	$	205
Investing Activities:
Capital Expenditures	—			(184		)	(145		)	—		(329		)
Other Investing Activities	—			8			3			—		11
Net Cash Used for Investing Activities	—			(176		)	(142		)	—		(318		)
Financing Activities:
Proceeds from Long-term Debt, Net of Issuance Costs	985			—			—			—		985
Repurchase of Common Stock	(604		)	—			—			—		(604		)
Dividends Paid	(146		)	—			—			—		(146		)
Excess Tax Benefits from Share-based Compensation	—			81			19			—		100
Net Financing Activities and Advances to/from Consolidated Affiliates	(67		)	54			13			—		—
Proceeds from Exercise of Stock Options and Other	36			—			—			—		36
Net Cash Provided by Financing Activities	204			135			32			—		371
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			—			—		—
Net Increase in Cash and Cash Equivalents	—			252			6			—		258
Cash and Cash Equivalents, Beginning of Period	—			371			564			—		935
Cash and Cash Equivalents, End of Period	$	—		$	623		$	570		$	—	$	1,193