Supplemental Guarantor Financial Information

The Company’s 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2028 Notes, 2035 Notes, 2036 Notes and certain of its Foreign Facilities 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 May 5, 2018, February 3, 2018 and April 29, 2017 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended May 5, 2018 and April 29, 2017.

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	May 5, 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	677		$	355	$	—		$	1,032
Accounts Receivable, Net	—			152			122		—			274
Inventories	—			1,199			151		—			1,350
Other	1			136			97		—			234
Total Current Assets	1			2,164			725		—			2,890
Property and Equipment, Net	—			1,970			924		—			2,894
Goodwill	—			1,318			30		—			1,348
Trade Names	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,690			18,969			2,025		(25,684		)	—
Deferred Income Taxes	—			9			13		—			22
Other Assets	129			16			651		(612		)	184
Total Assets	$	4,820		$	24,857		$	4,368	$	(26,296	)	$	7,749
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	5		$	350		$	362	$	—		$	717
Accrued Expenses and Other	59			461			328		—			848
Current Debt	—			—			89		—			89
Income Taxes	6			176			22		—			204
Total Current Liabilities	70			987			801		—			1,858
Deferred Income Taxes	(2		)	(41		)	277		—			234
Long-term Debt	5,707			597			12		(597		)	5,719
Other Long-term Liabilities	1			823			98		(15		)	907
Total Equity (Deficit)	(956		)	22,491			3,180		(25,684		)	(969		)
Total Liabilities and Equity (Deficit)	$	4,820		$	24,857		$	4,368	$	(26,296	)	$	7,749

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)



	February 3, 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,164		$	351	$	—		$	1,515
Accounts Receivable, Net	—			186			124		—			310
Inventories	—			1,095			145		—			1,240
Other	—			132			96		—			228
Total Current Assets	—			2,577			716		—			3,293
Property and Equipment, Net	—			1,984			909		—			2,893
Goodwill	—			1,318			30		—			1,348
Trade Names	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,912			18,359			2,106		(25,377		)	—
Deferred Income Taxes	—			10			4		—			14
Other Assets	129			18			654		(611		)	190
Total Assets	$	5,041		$	24,677		$	4,419	$	(25,988	)	$	8,149
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	2		$	349		$	366	$	—		$	717
Accrued Expenses and Other	101			529			399		—			1,029
Current Debt	—			—			87		—			87
Income Taxes	6			174			18		—			198
Total Current Liabilities	109			1,052			870		—			2,031
Deferred Income Taxes	(2		)	(46		)	286		—			238
Long-term Debt	5,706			597			1		(597		)	5,707
Other Long-term Liabilities	3			835			100		(14		)	924
Total Equity (Deficit)	(775		)	22,239			3,162		(25,377		)	(751		)
Total Liabilities and Equity (Deficit)	$	5,041		$	24,677		$	4,419	$	(25,988	)	$	8,149

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	April 29, 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,207		$	348	$	—		$	1,555
Accounts Receivable, Net	1			130			82		—			213
Inventories	—			1,000			147		—			1,147
Other	—			130			107		—			237
Total Current Assets	1			2,467			684		—			3,152
Property and Equipment, Net	—			1,935			826		—			2,761
Goodwill	—			1,318			30		—			1,348
Trade Names	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,819			16,358			1,449		(22,626		)	—
Deferred Income Taxes	—			10			13		—			23
Other Assets	129			34			636		(612		)	187
Total Assets	$	4,949		$	22,533		$	3,638	$	(23,238	)	$	7,882
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	2		$	371		$	291	$	—		$	664
Accrued Expenses and Other	109			394			310		—			813
Current Debt	—			—			44		—			44
Income Taxes	(11		)	226			95		—			310
Total Current Liabilities	100			991			740		—			1,831
Deferred Income Taxes	(3		)	(86		)	449		—			360
Long-term Debt	5,702			597			—		(597		)	5,702
Other Long-term Liabilities	3			752			84		(15		)	824
Total Equity (Deficit)	(853		)	20,279			2,365		(22,626		)	(835		)
Total Liabilities and Equity (Deficit)	$	4,949		$	22,533		$	3,638	$	(23,238	)	$	7,882

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	First Quarter 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,466		$	839		$	(679	)	$	2,626
Costs of Goods Sold, Buying and Occupancy	—			(1,622		)	(669		)	609			(1,682		)
Gross Profit	—			844			170			(70		)	944
General, Administrative and Store Operating Expenses	(4		)	(726		)	(109		)	50			(789		)
Operating Income (Loss)	(4		)	118			61			(20		)	155
Interest Expense	(97		)	(20		)	(3		)	22			(98		)
Other Income (Loss)	—			4			(2		)	—			2
Income (Loss) Before Income Taxes	(101		)	102			56			2			59
Provision (Benefit) for Income Taxes	(2		)	13			—			—			11
Equity in Earnings (Loss), Net of Tax	147			215			152			(514		)	—
Net Income (Loss)	$	48		$	304		$	208		$	(512	)	$	48

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	First Quarter 2018
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	48	$	304	$	208		$	(512	)	$	48
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		(13		)	—			(13		)
Unrealized Gain on Cash Flow Hedges	—		—		6			—			6
Reclassification of Cash Flow Hedges to Earnings	—		—		2			—			2
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(5		)	—			(5		)
Total Comprehensive Income (Loss)	$	48	$	304	$	203		$	(512	)	$	43

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	First Quarter 2017
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,310		$	696		$	(569	)	$	2,437
Costs of Goods Sold, Buying and Occupancy	—			(1,486		)	(571		)	523			(1,534		)
Gross Profit	—			824			125			(46		)	903
General, Administrative and Store Operating Expenses	(4		)	(635		)	(90		)	35			(694		)
Operating Income (Loss)	(4		)	189			35			(11		)	209
Interest Expense	(100		)	(11		)	(3		)	13			(101		)
Other Income	—			3			7			—			10
Income (Loss) Before Income Taxes	(104		)	181			39			2			118
Provision for Income Taxes	—			20			4			—			24
Equity in Earnings (Loss), Net of Tax	198			179			150			(527		)	—
Net Income (Loss)	$	94		$	340		$	185		$	(525	)	$	94

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	First Quarter 2017
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	94	$	340	$	185		$	(525	)	$	94
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		3			—			3
Unrealized Gain on Cash Flow Hedges	—		—		9			—			9
Reclassification of Cash Flow Hedges to Earnings	—		—		(6		)	—			(6		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		6			—			6
Total Comprehensive Income (Loss)	$	94	$	340	$	191		$	(525	)	$	100

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2018
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(141	)	$	65		$	(3	)	$	—		$	(79	)
Investing Activities:
Capital Expenditures	—			(91		)	(69		)	—			(160		)
Return of Capital from Easton Investments	—			—			1			—			1
Net Investments in Consolidated Affiliates	—			—			(11		)	11			—
Net Cash Provided by (Used for) Investing Activities	—			(91		)	(79		)	11			(159		)
Financing Activities:
Borrowings from Foreign Facilities	—			—			21			—			21
Repayments of Foreign Facilities	—			—			(8		)	—			(8		)
Dividends Paid	(168		)	—			—			—			(168		)
Repurchases of Common Stock	(81		)	—			—			—			(81		)
Tax Payments related to Share-based Awards	(8		)	—			—			—			(8		)
Proceeds from Exercise of Stock Options	1			—			—			—			1
Net Financing Activities and Advances to/from Consolidated Affiliates	397			(461		)	75			(11		)	—
Net Cash Provided by (Used for) Financing Activities	141			(461		)	88			(11		)	(243		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(2		)	—			(2		)
Net Increase (Decrease) in Cash and Cash Equivalents	—			(487		)	4			—			(483		)
Cash and Cash Equivalents, Beginning of Period	—			1,164			351			—			1,515
Cash and Cash Equivalents, End of Period	$	—		$	677		$	355		$	—		$	1,032

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	$	(96	)	$	181		$	(78	)	$	—	$	7
Investing Activities:
Capital Expenditures	—			(135		)	(30		)	—		(165		)
Return of Capital from Easton Investments	—			—			10			—		10
Net Cash Used for Investing Activities	—			(135		)	(20		)	—		(155		)
Financing Activities:
Borrowings from Foreign Facilities	—			—			9			—		9
Repayments of Foreign Facilities	—			—			(1		)	—		(1		)
Dividends Paid	(172		)	—			—			—		(172		)
Repurchases of Common Stock	(85		)	—			—			—		(85		)
Tax Payments related to Share-based Awards	(17		)	—			—			—		(17		)
Proceeds from Exercise of Stock Options	36			—			—			—		36
Net Financing Activities and Advances to/from Consolidated Affiliates	334			(401		)	67			—		—
Net Cash Provided by (Used for) Financing Activities	96			(401		)	75			—		(230		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(1		)	—		(1		)
Net Decrease in Cash and Cash Equivalents	—			(355		)	(24		)	—		(379		)
Cash and Cash Equivalents, Beginning of Period	—			1,562			372			—		1,934
Cash and Cash Equivalents, End of Period	$	—		$	1,207		$	348		$	—	$	1,555