Supplemental Guarantor Financial Information

The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2035 Notes and 2036 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 July 29, 2017, January 28, 2017 and July 30, 2016 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended July 29, 2017 and July 30, 2016.

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	July 29, 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,008		$	352	$	—		$	1,360
Accounts Receivable, Net	—			147			98		—			245
Inventories	—			995			123		—			1,118
Other	—			148			86		—			234
Total Current Assets	—			2,298			659		—			2,957
Property and Equipment, Net	—			1,997			844		—			2,841
Goodwill	—			1,318			30		—			1,348
Trade Names and Other Intangible Assets, Net	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,753			17,731			1,834		(24,318		)	—
Deferred Income Taxes	—			10			15		—			25
Other Assets	133			29			631		(612		)	181
Total Assets	$	4,886		$	23,794		$	4,013	$	(24,930	)	$	7,763
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	3		$	414		$	341	$	—		$	758
Accrued Expenses and Other	101			452			307		—			860
Current Portion of Long-term Debt	—			—			64		—			64
Income Taxes	1			18			57		—			76
Total Current Liabilities	105			884			769		—			1,758
Deferred Income Taxes	(3		)	(78		)	450		—			369
Long-term Debt	5,704			597			—		(597		)	5,704
Other Long-term Liabilities	3			764			91		(14		)	844
Total Equity (Deficit)	(923		)	21,627			2,703		(24,319		)	(912		)
Total Liabilities and Equity (Deficit)	$	4,886		$	23,794		$	4,013	$	(24,930	)	$	7,763

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)



	January 28, 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,562		$	372	$	—		$	1,934
Accounts Receivable, Net	—			228			66		—			294
Inventories	—			976			120		—			1,096
Other	—			53			88		—			141
Total Current Assets	—			2,819			646		—			3,465
Property and Equipment, Net	—			1,897			844		—			2,741
Goodwill	—			1,318			30		—			1,348
Trade Names and Other Intangible Assets, Net	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,923			15,824			1,350		(22,097		)	—
Deferred Income Taxes	—			10			9		—			19
Other Assets	130			28			639		(611		)	186
Total Assets	$	5,053		$	22,307		$	3,518	$	(22,708	)	$	8,170
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	3		$	326		$	354	$	—		$	683
Accrued Expenses and Other	100			526			371		—			997
Current Portion of Long-term Debt	—			—			36		—			36
Income Taxes	(11		)	221			88		—			298
Total Current Liabilities	92			1,073			849		—			2,014
Deferred Income Taxes	(3		)	(93		)	448		—			352
Long-term Debt	5,700			597			—		(597		)	5,700
Other Long-term Liabilities	3			761			81		(14		)	831
Total Equity (Deficit)	(739		)	19,969			2,140		(22,097		)	(727		)
Total Liabilities and Equity (Deficit)	$	5,053		$	22,307		$	3,518	$	(22,708	)	$	8,170

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	July 30, 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	890		$	383	$	—		$	1,273
Accounts Receivable, Net	1			212			53		—			266
Inventories	—			1,068			136		—			1,204
Other	—			132			85		—			217
Total Current Assets	1			2,302			657		—			2,960
Property and Equipment, Net	—			1,780			806		—			2,586
Goodwill	—			1,318			30		—			1,348
Trade Names and Other Intangible Assets, Net	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,508			15,320			1,661		(21,489		)	—
Deferred Income Taxes	—			11			19		—			30
Other Assets	137			34			647		(612		)	206
Total Assets	$	4,646		$	21,176		$	3,820	$	(22,101	)	$	7,541
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	4		$	438		$	351	$	—		$	793
Accrued Expenses and Other	104			481			294		—			879
Current Portion of Long-term Debt	—			—			13		—			13
Income Taxes	(11		)	4			141		—			134
Total Current Liabilities	97			923			799		—			1,819
Deferred Income Taxes	(3		)	(78		)	349		—			268
Long-term Debt	5,702			597			4		(597		)	5,706
Other Long-term Liabilities	1			736			155		(15		)	877
Total Equity (Deficit)	(1,151		)	18,998			2,513		(21,489		)	(1,129		)
Total Liabilities and Equity (Deficit)	$	4,646		$	21,176		$	3,820	$	(22,101	)	$	7,541

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,594		$	829		$	(668	)	$	2,755
Costs of Goods Sold, Buying and Occupancy	—			(1,668		)	(642		)	583			(1,727		)
Gross Profit	—			926			187			(85		)	1,028
General, Administrative and Store Operating Expenses	(2		)	(693		)	(96		)	64			(727		)
Operating Income (Loss)	(2		)	233			91			(21		)	301
Interest Expense	(100		)	(22		)	(3		)	24			(101		)
Other Income	—			2			15			—			17
Income (Loss) Before Income Taxes	(102		)	213			103			3			217
Provision for Income Taxes	—			45			33			—			78
Equity in Earnings (Loss), Net of Tax	241			297			230			(768		)	—
Net Income (Loss)	$	139		$	465		$	300		$	(765	)	$	139

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2017
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	139	$	465	$	300		$	(765	)	$	139
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		7			—			7
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		(26		)	—			(26		)
Reclassification of Cash Flow Hedges to Earnings	—		—		12			—			12
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(7		)	—			(7		)
Total Comprehensive Income (Loss)	$	139	$	465	$	293		$	(765	)	$	132

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,724		$	808		$	(642	)	$	2,890
Costs of Goods Sold, Buying and Occupancy	—			(1,701		)	(669		)	593			(1,777		)
Gross Profit	—			1,023			139			(49		)	1,113
General, Administrative and Store Operating Expenses	(2		)	(635		)	(106		)	38			(705		)
Operating Income (Loss)	(2		)	388			33			(11		)	408
Interest Expense	(101		)	(11		)	(3		)	14			(101		)
Other Income (Loss)	(36		)	1			108			—			73
Income (Loss) Before Income Taxes	(139		)	378			138			3			380
Provision (Benefit) for Income Taxes	(13		)	72			69			—			128
Equity in Earnings (Loss), Net of Tax	378			223			196			(797		)	—
Net Income (Loss)	$	252		$	529		$	265		$	(794	)	$	252

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2016
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	252	$	529	$	265		$	(794	)	$	252
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		(18		)	—			(18		)
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		5			—			5
Reclassification of Cash Flow Hedges to Earnings	—		—		(5		)	—			(5		)
Unrealized Loss on Marketable Securities	—		—		(2		)	—			(2		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(20		)	—			(20		)
Total Comprehensive Income (Loss)	$	252	$	529	$	245		$	(794	)	$	232

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	4,890		$	1,526		$	(1,224	)	$	5,192
Costs of Goods Sold, Buying and Occupancy	—			(3,140		)	(1,213		)	1,092			(3,261		)
Gross Profit	—			1,750			313			(132		)	1,931
General, Administrative and Store Operating Expenses	(6		)	(1,329		)	(186		)	100			(1,421		)
Operating Income (Loss)	(6		)	421			127			(32		)	510
Interest Expense	(200		)	(33		)	(5		)	37			(201		)
Other Income	—			5			22			—			27
Income (Loss) Before Income Taxes	(206		)	393			144			5			336
Provision for Income Taxes	—			65			38			—			103
Equity in Earnings (Loss), Net of Tax	439			476			380			(1,295		)	—
Net Income (Loss)	$	233		$	804		$	486		$	(1,290	)	$	233

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2017
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	233	$	804	$	486		$	(1,290	)	$	233
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		10			—			10
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		(16		)	—			(16		)
Reclassification of Cash Flow Hedges to Earnings	—		—		5			—			5
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(1		)	—			(1		)
Total Comprehensive Income (Loss)	$	233	$	804	$	485		$	(1,290	)	$	232

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	5,196		$	1,666		$	(1,358	)	$	5,504
Costs of Goods Sold, Buying and Occupancy	—			(3,240		)	(1,380		)	1,272			(3,348		)
Gross Profit	—			1,956			286			(86		)	2,156
General, Administrative and Store Operating Expenses	(4		)	(1,274		)	(219		)	73			(1,424		)
Operating Income (Loss)	(4		)	682			67			(13		)	732
Interest Expense	(199		)	(20		)	(5		)	25			(199		)
Other Income (Loss)	(36		)	2			114			—			80
Income (Loss) Before Income Taxes	(239		)	664			176			12			613
Provision (Benefit) for Income Taxes	(14		)	134			88			—			208
Equity in Earnings (Loss), Net of Tax	630			285			264			(1,179		)	—
Net Income (Loss)	$	405		$	815		$	352		$	(1,167	)	$	405

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2016
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	405	$	815	$	352		$	(1,167	)	$	405
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		(10		)	—			(10		)
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		(11		)	—			(11		)
Reclassification of Cash Flow Hedges to Earnings	—		—		9			—			9
Unrealized Loss on Marketable Securities	—		—		(3		)	—			(3		)
Reclassification of Gain on Marketable Securities to Earnings	—		—		(3		)	—			(3		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(18		)	—			(18		)
Total Comprehensive Income (Loss)	$	405	$	815	$	334		$	(1,167	)	$	387

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(196	)	$	349		$	68		$	—	$	221
Investing Activities:
Capital Expenditures	—			(301		)	(71		)	—		(372		)
Return of Capital from Easton Investments	—			—			27			—		27
Other Investing Activities	—			—			(5		)	—		(5		)
Net Cash Used for Investing Activities	—			(301		)	(49		)	—		(350		)
Financing Activities:
Borrowings from Foreign Facilities	—			—			36			—		36
Repayments on Foreign Facilities	—			—			(8		)	—		(8		)
Dividends Paid	(344		)	—			—			—		(344		)
Repurchases of Common Stock	(132		)	—			—			—		(132		)
Tax Payments related to Share-based Awards	(30		)	—			—			—		(30		)
Proceeds from Exercise of Stock Options	37			—			—			—		37
Financing Costs	(5		)	—			—			—		(5		)
Other Financing Activities	—			(3		)	—			—		(3		)
Net Financing Activities and Advances to/from Consolidated Affiliates	670			(599		)	(71		)	—		—
Net Cash Provided by (Used for) Financing Activities	196			(602		)	(43		)	—		(449		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			4			—		4
Net Decrease in Cash and Cash Equivalents	—			(554		)	(20		)	—		(574		)
Cash and Cash Equivalents, Beginning of Period	—			1,562			372			—		1,934
Cash and Cash Equivalents, End of Period	$	—		$	1,008		$	352		$	—	$	1,360

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	$	(208	)	$	523		$	193		$	—		$	508
Investing Activities:
Capital Expenditures	—			(382		)	(115		)	—			(497		)
Return of Capital from Easton Investments	—			—			111			—			111
Acquisition, Net of Cash Acquired of $1	—			—			(31		)	—			(31		)
Proceeds from Sale of Marketable Securities	—			—			10			—			10
Net Investments in Consolidated Affiliates	—			—			(38		)	38			—
Other Investing Activities	—			1			12			—			13
Net Cash Used for Investing Activities	—			(381		)	(51		)	38			(394		)
Financing Activities:
Proceeds from the Issuance of Long-term Debt, Net of Issuance Costs	692			—			—			—			692
Payment of Long-term Debt	(742		)	—			—			—			(742		)
Borrowings from Foreign Facilities	—			—			10			—			10
Dividends Paid	(923		)	—			—			—			(923		)
Repurchases of Common Stock	(385		)	—			—			—			(385		)
Tax Payments related to Share-based Awards	(50		)	—			—			—			(50		)
Proceeds from Exercise of Stock Options	13			—			—			—			13
Other Financing Activities	—			(1		)	—			—			(1		)
Net Financing Activities and Advances to/from Consolidated Affiliates	1,603			(1,441		)	(124		)	(38		)	—
Net Cash Provided by (Used for) Financing Activities	208			(1,442		)	(114		)	(38		)	(1,386		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(3		)	—			(3		)
Net Increase (Decrease) in Cash and Cash Equivalents	—			(1,300		)	25			—			(1,275		)
Cash and Cash Equivalents, Beginning of Period	—			2,190			358			—			2,548
Cash and Cash Equivalents, End of Period	$	—		$	890		$	383		$	—		$	1,273