Supplemental Guarantor Financial Information

The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes and 2035 Notes are jointly and severally guaranteed on a full and unconditional basis by the 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 April 30, 2016, January 30, 2016 and May 2, 2015 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended April 30, 2016 and May 2, 2015. The Company adopted ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, and ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, effective January 30, 2016. As such, amounts have been recast to include the retrospective application of these standards. For additional information, see Note 2, "New Accounting Pronouncements."

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	April 30, 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	888		$	379	$	—		$	1,267
Accounts Receivable, Net	2			189			58		—			249
Inventories	—			1,121			145		—			1,266
Other	—			121			88		—			209
Total Current Assets	2			2,319			670		—			2,991
Property and Equipment, Net	—			1,627			796		—			2,423
Goodwill	—			1,318			30		—			1,348
Trade Names and Other Intangible Assets, Net	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,551			14,752			1,363		(20,666		)	—
Deferred Income Taxes	—			11			18		—			29
Other Assets	140			37			658		(611		)	224
Total Assets	$	4,693		$	20,475		$	3,535	$	(21,277	)	$	7,426
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	1		$	387		$	332	$	—		$	720
Accrued Expenses and Other	110			432			291		—			833
Current Portion of Long-term Debt	—			—			8		—			8
Income Taxes	—			13			31		—			44
Total Current Liabilities	111			832			662		—			1,605
Deferred Income Taxes	(3		)	(76		)	348		—			269
Long-term Debt	5,713			598			5		(598		)	5,718
Other Long-term Liabilities	—			705			229		(14		)	920
Total Equity (Deficit)	(1,128		)	18,416			2,291		(20,665		)	(1,086		)
Total Liabilities and Equity (Deficit)	$	4,693		$	20,475		$	3,535	$	(21,277	)	$	7,426

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)



	January 30, 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	2,190		$	358		$	—		$	2,548
Accounts Receivable, Net	1			202			58			—			261
Inventories	—			978			144			—			1,122
Other	—			115			110			—			225
Total Current Assets	1			3,485			670			—			4,156
Property and Equipment, Net	—			1,574			756			—			2,330
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	5,368			13,649			1,242			(20,259		)	—
Deferred Income Taxes	—			11			19			—			30
Other Assets	141			40			679			(612		)	248
Total Assets	$	5,510		$	20,488		$	3,366		$	(20,871	)	$	8,493
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	333		$	335		$	—		$	668
Accrued Expenses and Other	100			519			358			—			977
Current Portion of Long-term Debt	—			—			6			—			6
Income Taxes	(3		)	237			(10		)	—			224
Total Current Liabilities	97			1,089			689			—			1,875
Deferred Income Taxes	(3		)	(86		)	346			—			257
Long-term Debt	5,714			597			1			(597		)	5,715
Other Long-term Liabilities	—			670			248			(14		)	904
Total Equity (Deficit)	(298		)	18,218			2,082			(20,260		)	(258		)
Total Liabilities and Equity (Deficit)	$	5,510		$	20,488		$	3,366		$	(20,871	)	$	8,493

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(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
Accounts Receivable, Net	3			185			51		—			239
Inventories	—			1,016			123		—			1,139
Other	—			172			86		—			258
Total Current Assets	3			1,774			508		—			2,285
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		)	—
Deferred Income Taxes	—			10			15		—			25
Other Assets	140			26			672		(611		)	227
Total Assets	$	4,198		$	20,008		$	3,570	$	(21,204	)	$	6,572
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		)	(52		)	303		—			248
Long-term Debt	4,719			597			—		(597		)	4,719
Other Long-term Liabilities	—			595			239		(14		)	820
Total Equity (Deficit)	(638		)	18,165			2,460		(20,593		)	(606		)
Total Liabilities and Equity (Deficit)	$	4,198		$	20,008		$	3,570	$	(21,204	)	$	6,572

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	First Quarter 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,472		$	858		$	(716	)	$	2,614
Costs of Goods Sold, Buying and Occupancy	—			(1,539		)	(711		)	679			(1,571		)
Gross Profit	—			933			147			(37		)	1,043
General, Administrative and Store Operating Expenses	(3		)	(639		)	(113		)	35			(720		)
Operating Income (Loss)	(3		)	294			34			(2		)	323
Interest Expense	(97		)	(9		)	(2		)	11			(97		)
Other Income	—			1			6			—			7
Income (Loss) Before Income Taxes	(100		)	286			38			9			233
Provision for Income Taxes	—			62			19			—			81
Equity in Earnings (Loss), Net of Tax	252			62			68			(382		)	—
Net Income (Loss)	$	152		$	286		$	87		$	(373	)	$	152

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	First Quarter 2016
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	152	$	286	$	87		$	(373	)	$	152
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		8			—			8
Unrealized Loss on Cash Flow Hedges	—		—		(16		)	—			(16		)
Reclassification of Cash Flow Hedges to Earnings	—		—		14			—			14
Unrealized Loss on Marketable Securities	—		—		(1		)	—			(1		)
Reclassification of Gain on Marketable Securities to Earnings	—		—		(3		)	—			(3		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		2			—			2
Total Comprehensive Income (Loss)	$	152	$	286	$	89		$	(373	)	$	154

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT 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 STATEMENT 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:
Foreign Currency Translation	—		—		(10		)	—			(10		)
Unrealized Loss on Cash Flow Hedges	—		—		(10		)	—			(10		)
Reclassification of Cash Flow Hedges to Earnings	—		—		17			—			17
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(3		)	—			(3		)
Total Comprehensive Income (Loss)	$	250	$	472	$	255		$	(730	)	$	247

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(87	)	$	(53	)	$	26		$	—	$	(114	)
Investing Activities:
Capital Expenditures	—			(140		)	(47		)	—		(187		)
Proceeds from Sale of Marketable Securities	—			—			10			—		10
Acquisition, Net of Cash Acquired of $1	—			—			(31		)	—		(31		)
Other Investing Activities	—			2			1			—		3
Net Cash Used for Investing Activities	—			(138		)	(67		)	—		(205		)
Financing Activities:
Borrowings from Revolving Facilities	—			—			6			—		6
Repurchase of Common Stock	(260		)	—			—			—		(260		)
Dividends Paid	(750		)	—			—			—		(750		)
Excess Tax Benefits from Share-based Compensation	—			28			3			—		31
Net Financing Activities and Advances to/from Consolidated Affiliates	1,087			(1,138		)	51			—		—
Proceeds from Exercise of Stock Options	10			—			—			—		10
Financing Costs and Other	—			(1		)	—			—		(1		)
Net Cash Provided by (Used for) Financing Activities	87			(1,111		)	60			—		(964		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			2			—		2
Net Increase (Decrease) in Cash and Cash Equivalents	—			(1,302		)	21			—		(1,281		)
Cash and Cash Equivalents, Beginning of Period	—			2,190			358			—		2,548
Cash and Cash Equivalents, End of Period	$	—		$	888		$	379		$	—	$	1,267

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT 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	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