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Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Notes)
6 Months Ended
Aug. 04, 2018
Supplemental Guarantor Financial Information [Abstract]  
Schedule Of Supplemental Guarantor Financial Information [Text Block]
Supplemental Guarantor Financial Information
The Company’s 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2027 Notes, 2028 Notes, 2035 Notes, 2036 Notes, Revolving Facility and Secured 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 August 4, 2018, February 3, 2018 and July 29, 2017 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended August 4, 2018 and July 29, 2017.
L BRANDS, INC.
CONDENSED CONSOLIDATING BALANCE SHEET
(in millions)
(Unaudited)
 
 
August 4, 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$

 
$
453

 
$
390

 
$

 
$
843

Accounts Receivable, Net

 
166

 
144

 

 
310

Inventories

 
1,139

 
176

 

 
1,315

Other
6

 
143

 
98

 

 
247

Total Current Assets
6

 
1,901

 
808

 

 
2,715

Property and Equipment, Net

 
2,012

 
937

 

 
2,949

Goodwill

 
1,318

 
30

 

 
1,348

Trade Names

 
411

 

 

 
411

Net Investments in and Advances to/from Consolidated Affiliates
4,544

 
19,604

 
2,205

 
(26,353
)
 

Deferred Income Taxes

 
10

 
11

 

 
21

Other Assets
128

 
14

 
645

 
(611
)
 
176

Total Assets
$
4,678

 
$
25,270

 
$
4,636

 
$
(26,964
)
 
$
7,620

LIABILITIES AND EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Accounts Payable
$
3

 
$
430

 
$
388

 
$

 
$
821

Accrued Expenses and Other
96

 
539

 
328

 

 
963

Current Debt

 

 
65

 

 
65

Income Taxes

 

 
7

 

 
7

Total Current Liabilities
99

 
969

 
788

 

 
1,856

Deferred Income Taxes
(2
)
 
(38
)
 
277

 

 
237

Long-term Debt
5,657

 
597

 
55

 
(597
)
 
5,712

Other Long-term Liabilities
58

 
796

 
97

 
(14
)
 
937

Total Equity (Deficit)
(1,134
)
 
22,946

 
3,419

 
(26,353
)
 
(1,122
)
Total Liabilities and Equity (Deficit)
$
4,678

 
$
25,270

 
$
4,636

 
$
(26,964
)
 
$
7,620


















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
4,973

 
18,298

 
2,106

 
(25,377
)
 

Deferred Income Taxes

 
10

 
4

 

 
14

Other Assets
129

 
18

 
654

 
(611
)
 
190

Total Assets
$
5,102

 
$
24,616

 
$
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
64

 
774

 
100

 
(14
)
 
924

Total Equity (Deficit)
(775
)
 
22,239

 
3,162

 
(25,377
)
 
(751
)
Total Liabilities and Equity (Deficit)
$
5,102

 
$
24,616

 
$
4,419

 
$
(25,988
)
 
$
8,149



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

 
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 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 STATEMENT OF INCOME
(in millions)
(Unaudited)
 
 
Second Quarter 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$

 
$
2,797

 
$
751

 
$
(564
)
 
$
2,984

Costs of Goods Sold, Buying and Occupancy

 
(1,835
)
 
(650
)
 
560

 
(1,925
)
Gross Profit

 
962

 
101

 
(4
)
 
1,059

General, Administrative and Store Operating Expenses
(2
)
 
(717
)
 
(118
)
 
6

 
(831
)
Operating Income (Loss)
(2
)
 
245

 
(17
)
 
2

 
228

Interest Expense
(97
)
 
2

 
(2
)
 
(1
)
 
(98
)
Other Income (Loss)

 
3

 
(4
)
 

 
(1
)
Income (Loss) Before Income Taxes
(99
)
 
250

 
(23
)
 
1

 
129

Provision for Income Taxes

 
21

 
9

 

 
30

Equity in Earnings (Loss), Net of Tax
198

 
217

 
245

 
(660
)
 

Net Income (Loss)
$
99

 
$
446

 
$
213

 
$
(659
)
 
$
99





L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
 
 
Second Quarter 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
99

 
$
446

 
$
213

 
$
(659
)
 
$
99

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Foreign Currency Translation

 

 
(9
)
 

 
(9
)
Unrealized Gain (Loss) on Cash Flow Hedges

 

 
3

 

 
3

Reclassification of Cash Flow Hedges to Earnings

 

 
1

 

 
1

Total Other Comprehensive Income (Loss), Net of Tax

 

 
(5
)
 

 
(5
)
Total Comprehensive Income (Loss)
$
99

 
$
446

 
$
208

 
$
(659
)
 
$
94













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)
 
 
Year-to-Date 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Sales
$

 
$
5,263

 
$
1,590

 
$
(1,243
)
 
$
5,610

Costs of Goods Sold, Buying and Occupancy

 
(3,457
)
 
(1,319
)
 
1,169

 
(3,607
)
Gross Profit

 
1,806

 
271

 
(74
)
 
2,003

General, Administrative and Store Operating Expenses
(6
)
 
(1,443
)
 
(227
)
 
56

 
(1,620
)
Operating Income (Loss)
(6
)
 
363

 
44

 
(18
)
 
383

Interest Expense
(194
)
 
(18
)
 
(5
)
 
21

 
(196
)
Other Income (Loss)

 
7

 
(6
)
 

 
1

Income (Loss) Before Income Taxes
(200
)
 
352

 
33

 
3

 
188

Provision (Benefit) for Income Taxes
(2
)
 
34

 
9

 

 
41

Equity in Earnings (Loss), Net of Tax
345

 
432

 
397

 
(1,174
)
 

Net Income (Loss)
$
147

 
$
750

 
$
421

 
$
(1,171
)
 
$
147





L BRANDS, INC.
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
 
 
Year-to-Date 2018
 
L Brands, Inc.
 
Guarantor
Subsidiaries
 
Non-
guarantor
Subsidiaries
 
Eliminations
 
Consolidated
L Brands, Inc.
Net Income (Loss)
$
147

 
$
750

 
$
421

 
$
(1,171
)
 
$
147

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
 
 
Foreign Currency Translation

 

 
(22
)
 

 
(22
)
Unrealized Gain (Loss) on Cash Flow Hedges

 

 
9

 

 
9

Reclassification of Cash Flow Hedges to Earnings

 

 
3

 

 
3

Total Other Comprehensive Income (Loss), Net of Tax

 

 
(10
)
 

 
(10
)
Total Comprehensive Income (Loss)
$
147

 
$
750

 
$
411

 
$
(1,171
)
 
$
137










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 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
$
(219
)
 
$
471

 
$
(40
)
 
$

 
$
212

Investing Activities:
 
 
 
 
 
 
 
 
 
Capital Expenditures

 
(213
)
 
(132
)
 

 
(345
)
Return of Capital from Easton Investments

 

 
13

 

 
13

Net Investments in Consolidated Affiliates

 

 
(11
)
 
11

 

Other Investing Activities

 

 
2

 

 
2

Net Cash Provided by (Used for) Investing Activities

 
(213
)
 
(128
)
 
11

 
(330
)
Financing Activities:
 
 
 
 
 
 
 
 
 
Payment of Long-term Debt
(52
)
 

 

 

 
(52
)
Borrowings from Foreign Facilities

 

 
89

 

 
89

Repayments of Foreign Facilities

 

 
(57
)
 

 
(57
)
Dividends Paid
(335
)
 

 

 

 
(335
)
Repurchases of Common Stock
(186
)
 

 

 

 
(186
)
Tax Payments related to Share-based Awards
(12
)
 

 

 

 
(12
)
Proceeds from Exercise of Stock Options
1

 

 

 

 
1

Financing Costs and Other
(2
)
 

 

 

 
(2
)
Net Financing Activities and Advances to/from Consolidated Affiliates
805

 
(969
)
 
175

 
(11
)
 

Net Cash Provided by (Used for) Financing Activities
219


(969
)

207


(11
)

(554
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents

 

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

 
(711
)
 
39

 

 
(672
)
Cash and Cash Equivalents, Beginning of Period

 
1,164

 
351

 

 
1,515

Cash and Cash Equivalents, End of Period
$

 
$
453

 
$
390

 
$

 
$
843


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 of 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 and Other
(5
)
 
(3
)
 

 

 
(8
)
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