Supplemental Guarantor Financial Information

The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes and 2023 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 November 2, 2013, February 2, 2013 and October 27, 2012; and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended November 2, 2013 and October 27, 2012.

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)

(Unaudited)



	November 2, 2013
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	282		$	143		$	—		$	425
Accounts Receivable, Net	1			165			79			—			245
Inventories	—			1,379			265			(1		)	1,643
Deferred Income Taxes	—			40			(10		)	—			30
Other	2			147			89			(1		)	237
Total Current Assets	3			2,013			566			(2		)	2,580
Property and Equipment, Net	—			1,220			858			—			2,078
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,006			14,393			677			(19,076		)	—
Other Assets	190			9			661			(611		)	249
Total Assets	$	4,199		$	19,364		$	2,762		$	(19,689	)	$	6,636
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	466		$	333		$	—		$	799
Accrued Expenses and Other	61			400			241			—			702
Current Portion of Long-term Debt	216			—			—			—			216
Income Taxes	—			18			(1		)	—			17
Total Current Liabilities	277			884			573			—			1,734
Deferred Income Taxes	(4		)	(8		)	206			—			194
Long-term Debt	4,762			597			—			(597		)	4,762
Other Long-term Liabilities	3			570			207			(14		)	766
Total Equity (Deficit)	(839		)	17,321			1,776			(19,078		)	(820		)
Total Liabilities and Equity (Deficit)	$	4,199		$	19,364		$	2,762		$	(19,689	)	$	6,636

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)



	October 27, 2012
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	226		$	321	$	—		$	547
Accounts Receivable, Net	—			142			83		—			225
Inventories	—			1,231			215		—			1,446
Deferred Income Taxes	—			34			16		—			50
Other	—			158			59		—			217
Total Current Assets	—			1,791			694		—			2,485
Property and Equipment, Net	—			1,036			805		—			1,841
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	3,898			13,889			913		(18,700		)	—
Other Assets	190			45			690		(648		)	277
Total Assets	$	4,088		$	18,489		$	3,198	$	(19,348	)	$	6,427
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	451		$	281	$	—		$	732
Accrued Expenses and Other	77			396			244		—			717
Current Portion of Long-term Debt	57			—			—		—			57
Income Taxes	—			—			6		—			6
Total Current Liabilities	134			847			531		—			1,512
Deferred Income Taxes	(5		)	(3		)	182		—			174
Long-term Debt	4,478			597			37		(634		)	4,478
Other Long-term Liabilities	3			592			197		(14		)	778
Total Equity (Deficit)	(522		)	16,456			2,251		(18,700		)	(515		)
Total Liabilities and Equity (Deficit)	$	4,088		$	18,489		$	3,198	$	(19,348	)	$	6,427

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Third Quarter 2013
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,026		$	845		$	(700	)	$	2,171
Costs of Goods Sold, Buying and Occupancy	—			(1,319		)	(664		)	669			(1,314		)
Gross Profit	—			707			181			(31		)	857
General, Administrative and Store Operating Expenses	(1		)	(569		)	(106		)	30			(646		)
Operating Income (Loss)	(1		)	138			75			(1		)	211
Interest Expense	(76		)	(7		)	(2		)	9			(76		)
Other Income	—			—			7			—			7
Income (Loss) Before Income Taxes	(77		)	131			80			8			142
Provision for Income Taxes	—			27			23			—			50
Equity in Earnings (Loss)	169			(23		)	(88		)	(58		)	—
Net Income (Loss)	$	92		$	81		$	(31	)	$	(50	)	$	92

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Third Quarter 2013
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	92	$	81	$	(31	)	$	(50	)	$	92
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		(2		)	—			(2		)
Foreign Currency Translation	—		—		5			—			5
Unrealized Gain on Cash Flow Hedges	—		—		3			—			3
Total Other Comprehensive Income, Net of Tax	—		—		6			—			6
Total Comprehensive Income (Loss)	$	92	$	81	$	(25	)	$	(50	)	$	98

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Third Quarter 2012
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	1,872		$	690		$	(512	)	$	2,050
Costs of Goods Sold, Buying and Occupancy	—			(1,135		)	(573		)	483			(1,225		)
Gross Profit	—			737			117			(29		)	825
General, Administrative and Store Operating Expenses	(1		)	(572		)	(94		)	29			(638		)
Operating Income (Loss)	(1		)	165			23			—			187
Interest Expense	(77		)	(4		)	(2		)	6			(77		)
Other Income	—			—			18			—			18
Income (Loss) Before Income Taxes	(78		)	161			39			6			128
Provision for Income Taxes	—			28			26			—			54
Equity in Earnings (Loss)	152			(39		)	109			(222		)	—
Net Income (Loss)	$	74		$	94		$	122		$	(216	)	$	74

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Third Quarter 2012
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	74	$	94	$	122		$	(216	)	$	74
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		4			—			4
Foreign Currency Translation	—		—		—			—			—
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		(6		)	—			(6		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(2		)	—			(2		)
Total Comprehensive Income (Loss)	$	74	$	94	$	120		$	(216	)	$	72

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	$	—		$	6,385		$	2,386		$	(1,816	)	$	6,955
Costs of Goods Sold, Buying and Occupancy	—			(3,980		)	(1,923		)	1,735			(4,168		)
Gross Profit	—			2,405			463			(81		)	2,787
General, Administrative and Store Operating Expenses	(4		)	(1,682		)	(304		)	83			(1,907		)
Operating Income (Loss)	(4		)	723			159			2			880
Interest Expense	(232		)	(19		)	(8		)	27			(232		)
Other Income	—			—			11			—			11
Income (Loss) Before Income Taxes	(236		)	704			162			29			659
Provision for Income Taxes	—			130			116			—			246
Equity in Earnings (Loss)	649			297			225			(1,171		)	—
Net Income (Loss)	$	413		$	871		$	271		$	(1,142	)	$	413

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)	$	413	$	871	$	271		$	(1,142	)	$	413
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		(21		)	—			(21		)
Foreign Currency Translation	—		—		17			—			17
Unrealized Gain on Cash Flow Hedges	—		—		19			—			19
Total Other Comprehensive Income, Net of Tax	—		—		15			—			15
Total Comprehensive Income (Loss)	$	413	$	871	$	286		$	(1,142	)	$	428

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	$	—		$	6,056		$	1,997		$	(1,450	)	$	6,603
Costs of Goods Sold, Buying and Occupancy	—			(3,639		)	(1,681		)	1,386			(3,934		)
Gross Profit	—			2,417			316			(64		)	2,669
General, Administrative and Store Operating Expenses	(4		)	(1,672		)	(273		)	65			(1,884		)
Operating Income (Loss)	(4		)	745			43			1			785
Interest Expense	(234		)	(14		)	(7		)	21			(234		)
Other Income (Loss)	—			(1		)	20			—			19
Income (Loss) Before Income Taxes	(238		)	730			56			22			570
Provision for Income Taxes	—			140			88			—			228
Equity in Earnings (Loss)	580			(67		)	171			(684		)	—
Net Income (Loss)	$	342		$	523		$	139		$	(662	)	$	342

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)	$	342	$	523	$	139	$	(662	)	$	342
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	2		—		3		—			5
Foreign Currency Translation	—		—		1		—			1
Unrealized Gain on Cash Flow Hedges	—		—		1		—			1
Total Other Comprehensive Income, Net of Tax	2		—		5		—			7
Total Comprehensive Income (Loss)	$	344	$	523	$	144	$	(662	)	$	349

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	$	(253	)	$	164		$	58		$	—	$	(31	)
Investing Activities:
Capital Expenditures	—			(417		)	(181		)	—		(598		)
Return of Capital from Third-party Apparel Sourcing Investment	—			—			46			—		46
Other Investing Activities	—			—			3			—		3
Net Cash Used for Investing Activities	—			(417		)	(132		)	—		(549		)
Financing Activities:
Proceeds from Long-term Debt, Net of Issuance Costs	495			—			—			—		495
Borrowings from Revolving Facility	290			—			—			—		290
Repayments on Revolving Facility	(290		)	—			—			—		(290		)
Repurchase of Common Stock	(55		)	—			—			—		(55		)
Dividends Paid	(261		)	—			—			—		(261		)
Excess Tax Benefits from Share-based Compensation	—			25			6			—		31
Net Financing Activities and Advances to/from Consolidated Affiliates	52			93			(145		)	—		—
Proceeds from Exercise of Stock Options and Other	22			—			—			—		22
Net Cash Provided by (Used for) Financing Activities	253			118			(139		)	—		232
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			—			—		—
Net Decrease in Cash and Cash Equivalents	—			(135		)	(213		)	—		(348		)
Cash and Cash Equivalents, Beginning of Period	—			417			356			—		773
Cash and Cash Equivalents, End of Period	$	—		$	282		$	143		$	—	$	425

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	$	(282	)	$	206		$	151		$	—	$	75
Investing Activities:
Capital Expenditures	—			(311		)	(180		)	—		(491		)
Other Investing Activities	—			17			3			—		20
Net Cash Used for Investing Activities	—			(294		)	(177		)	—		(471		)
Financing Activities:
Proceeds from Long-term Debt, Net of Issuance Costs	985			—			—			—		985
Repurchase of Common Stock	(616		)	—			—			—		(616		)
Dividends Paid	(507		)	—			—			—		(507		)
Excess Tax Benefits from Share-based Compensation	—			83			20			—		103
Net Financing Activities and Advances to/from Consolidated Affiliates	378			(140		)	(238		)	—		—
Proceeds from Exercise of Stock Options and Other	42			—			—			—		42
Net Cash Provided by (Used for) Financing Activities	282			(57		)	(218		)	—		7
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			1			—		1
Net Decrease in Cash and Cash Equivalents	—			(145		)	(243		)	—		(388		)
Cash and Cash Equivalents, Beginning of Period	—			371			564			—		935
Cash and Cash Equivalents, End of Period	$	—		$	226		$	321		$	—	$	547