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 ("Guarantors"). 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 May 2, 2015, January 31, 2015 and May 3, 2014 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended May 2, 2015 and May 3, 2014. In the fourth quarter 2014, the Company added a subsidiary to the Guarantors. Accordingly, the supplemental financial information has been recast for all periods presented.

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)

(Unaudited)



	May 2, 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	401		$	248		$	—		$	649
Marketable Securities	—			50			—			—			50
Accounts Receivable, Net	3			185			51			—			239
Inventories	—			1,016			123			—			1,139
Deferred Income Taxes	—			34			(1		)	—			33
Other	—			122			86			—			208
Total Current Assets	3			1,808			507			—			2,318
Property and Equipment, Net	—			1,390			916			—			2,306
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,055			15,079			1,459			(20,593		)	—
Other Assets	181			32			683			(611		)	285
Total Assets	$	4,239		$	20,038		$	3,565		$	(21,204	)	$	6,638
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	57		$	285		$	297		$	—		$	639
Accrued Expenses and Other	63			402			258			—			723
Income Taxes	—			16			13			—			29
Total Current Liabilities	120			703			568			—			1,391
Deferred Income Taxes	(3		)	(22		)	298			—			273
Long-term Debt	4,760			597			—			(597		)	4,760
Other Long-term Liabilities	—			595			239			(14		)	820
Total Equity (Deficit)	(638		)	18,165			2,460			(20,593		)	(606		)
Total Liabilities and Equity (Deficit)	$	4,239		$	20,038		$	3,565		$	(21,204	)	$	6,638

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)



	January 31, 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,462		$	219		$	—		$	1,681
Accounts Receivable, Net	1			197			54			—			252
Inventories	—			919			117			—			1,036
Deferred Income Taxes	—			34			(1		)	—			33
Other	—			146			84			—			230
Total Current Assets	1			2,758			473			—			3,232
Property and Equipment, Net	—			1,385			892			—			2,277
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,635			14,003			1,405			(20,043		)	—
Other Assets	188			35			693			(610		)	306
Total Assets	$	4,824		$	19,910		$	3,463		$	(20,653	)	$	7,544
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	300		$	313		$	—		$	613
Accrued Expenses and Other	83			495			322			—			900
Income Taxes	(4		)	183			(13		)	—			166
Total Current Liabilities	79			978			622			—			1,679
Deferred Income Taxes	(4		)	(32		)	297			—			261
Long-term Debt	4,765			597			—			(597		)	4,765
Other Long-term Liabilities	—			609			224			(13		)	820
Total Equity (Deficit)	(16		)	17,758			2,320			(20,043		)	19
Total Liabilities and Equity (Deficit)	$	4,824		$	19,910		$	3,463		$	(20,653	)	$	7,544

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)

(Unaudited)



	May 3, 2014
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	748		$	164		$	—		$	912
Accounts Receivable, Net	2			150			64			—			216
Inventories	—			1,058			161			—			1,219
Deferred Income Taxes	—			44			(16		)	—			28
Other	—			123			87			—			210
Total Current Assets	2			2,123			460			—			2,585
Property and Equipment, Net	—			1,212			863			—			2,075
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,207			14,976			1,175			(20,358		)	—
Other Assets	182			19			684			(611		)	274
Total Assets	$	4,391		$	20,059		$	3,182		$	(20,969	)	$	6,663
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	3		$	291		$	261		$	—		$	555
Accrued Expenses and Other	63			359			239			—			661
Current Portion of Long-term Debt	214			—			—			—			214
Income Taxes	—			23			62			—			85
Total Current Liabilities	280			673			562			—			1,515
Deferred Income Taxes	(4		)	(19		)	240			—			217
Long-term Debt	4,758			597			—			(597		)	4,758
Other Long-term Liabilities	2			583			212			(15		)	782
Total Equity (Deficit)	(645		)	18,225			2,168			(20,357		)	(609		)
Total Liabilities and Equity (Deficit)	$	4,391		$	20,059		$	3,182		$	(20,969	)	$	6,663

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	First Quarter 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,369		$	816		$	(673	)	$	2,512
Costs of Goods Sold, Buying and Occupancy	—			(1,424		)	(616		)	584			(1,456		)
Gross Profit	—			945			200			(89		)	1,056
General, Administrative and Store Operating Expenses	(4		)	(616		)	(96		)	32			(684		)
Operating Income (Loss)	(4		)	329			104			(57		)	372
Interest Expense	(80		)	(8		)	(2		)	10			(80		)
Other Income	—			4			73			—			77
Income (Loss) Before Income Taxes	(84		)	325			175			(47		)	369
Provision for Income Taxes	—			78			41			—			119
Equity in Earnings (Loss), Net of Tax	334			225			124			(683		)	—
Net Income (Loss)	$	250		$	472		$	258		$	(730	)	$	250

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	First Quarter 2015
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	250	$	472	$	258		$	(730	)	$	250
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		17			—			17
Foreign Currency Translation	—		—		(10		)	—			(10		)
Unrealized Loss on Cash Flow Hedges	—		—		(10		)	—			(10		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(3		)	—			(3		)
Total Comprehensive Income (Loss)	$	250	$	472	$	255		$	(730	)	$	247

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	First Quarter 2014
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,231		$	784		$	(624	)	$	2,391
Costs of Goods Sold, Buying and Occupancy	—			(1,359		)	(647		)	597			(1,409		)
Gross Profit	—			872			137			(27		)	982
General, Administrative and Store Operating Expenses	(3		)	(568		)	(103		)	28			(646		)
Operating Income (Loss)	(3		)	304			34			1			336
Interest Expense	(84		)	(7		)	(2		)	9			(84		)
Other Income	—			—			3			—			3
Income (Loss) Before Income Taxes	(87		)	297			35			10			255
Provision for Income Taxes	(1		)	62			37			—			98
Equity in Earnings (Loss), Net of Tax	243			179			169			(591		)	—
Net Income (Loss)	$	157		$	414		$	167		$	(581	)	$	157

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	First Quarter 2014
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	157	$	414	$	167		$	(581	)	$	157
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		6			—			6
Foreign Currency Translation	—		—		(2		)	—			(2		)
Unrealized Loss on Cash Flow Hedges	—		—		(8		)	—			(8		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(4		)	—			(4		)
Total Comprehensive Income (Loss)	$	157	$	414	$	163		$	(581	)	$	153

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Used for Operating Activities	$	(42	)	$	(46	)	$	(68	)	$	—	$	(156	)
Investing Activities:
Capital Expenditures	—			(82		)	(50		)	—		(132		)
Proceeds from Divestiture of Third-party Apparel Sourcing Business	—			1			84			—		85
Purchase of Marketable Securities	—			(50		)	—			—		(50		)
Other Investing Activities	—			—			1			—		1
Net Cash Provided by (Used for) Investing Activities	—			(131		)	35			—		(96		)
Financing Activities:
Repurchase of Common Stock	(114		)	—			—			—		(114		)
Dividends Paid	(734		)	—			—			—		(734		)
Excess Tax Benefits from Share-based Compensation	—			42			6			—		48
Net Financing Activities and Advances to/from Consolidated Affiliates	871			(926		)	55			—		—
Proceeds from Exercise of Stock Options and Other	19			—			—			—		19
Net Cash Provided by (Used for) Financing Activities	42			(884		)	61			—		(781		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			1			—		1
Net Increase (Decrease) in Cash and Cash Equivalents	—			(1,061		)	29			—		(1,032		)
Cash and Cash Equivalents, Beginning of Period	—			1,462			219			—		1,681
Cash and Cash Equivalents, End of Period	$	—		$	401		$	248		$	—	$	649

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2014
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(108	)	$	(10	)	$	29		$	—	$	(89	)
Investing Activities:
Capital Expenditures	—			(92		)	(58		)	—		(150		)
Other Investing Activities	—			—			15			—		15
Net Cash Used for Investing Activities	—			(92		)	(43		)	—		(135		)
Financing Activities:
Repurchase of Common Stock	(43		)	—			—			—		(43		)
Dividends Paid	(392		)	—			—			—		(392		)
Excess Tax Benefits from Share-based Compensation	—			30			5			—		35
Net Financing Activities and Advances to/from Consolidated Affiliates	526			(533		)	7			—		—
Proceeds from Exercise of Stock Options and Other	17			—			—			—		17
Net Cash Provided by (Used for) Financing Activities	108			(503		)	12			—		(383		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			—			—		—
Net Decrease in Cash and Cash Equivalents	—			(605		)	(2		)	—		(607		)
Cash and Cash Equivalents, Beginning of Period	—			1,353			166			—		1,519
Cash and Cash Equivalents, End of Period	$	—		$	748		$	164		$	—	$	912