| Condensed Consolidating Balance Sheet |
Condensed Consolidating Balance Sheet As of January 28, 2012 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | ASSETS: | | | | | | | | | | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 2,533 |
| | $ | 38 |
| | $ | 256 |
| | $ | — |
| | $ | 2,827 |
| Receivables | — |
| | 58 |
| | 310 |
| | — |
| | 368 |
| Merchandise inventories | — |
| | 2,722 |
| | 2,395 |
| | — |
| | 5,117 |
| Prepaid expenses and other current assets | — |
| | 152 |
| | 313 |
| | — |
| | 465 |
| Total Current Assets | 2,533 |
| | 2,970 |
| | 3,274 |
| | — |
| | 8,777 |
| Property and Equipment – net | — |
| | 4,827 |
| | 3,593 |
| | — |
| | 8,420 |
| Goodwill | — |
| | 3,315 |
| | 428 |
| | — |
| | 3,743 |
| Other Intangible Assets – net | — |
| | 153 |
| | 445 |
| | — |
| | 598 |
| Other Assets | 4 |
| | 73 |
| | 480 |
| | — |
| | 557 |
| Intercompany Receivable | 520 |
| | — |
| | 2,963 |
| | (3,483 | ) | | — |
| Investment in Subsidiaries | 3,210 |
| | 2,435 |
| | — |
| | (5,645 | ) | | — |
| Total Assets | $ | 6,267 |
| | $ | 13,773 |
| | $ | 11,183 |
| | $ | (9,128 | ) | | $ | 22,095 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | Current Liabilities: | | | | | | | | | | Short-term debt | $ | — |
| | $ | 1,099 |
| | $ | 4 |
| | $ | — |
| | $ | 1,103 |
| Merchandise accounts payable | — |
| | 731 |
| | 862 |
| | — |
| | 1,593 |
| Accounts payable and accrued liabilities | 248 |
| | 1,103 |
| | 1,437 |
| | — |
| | 2,788 |
| Income taxes | 46 |
| | 29 |
| | 296 |
| | — |
| | 371 |
| Deferred income taxes | — |
| | 314 |
| | 94 |
| | — |
| | 408 |
| Total Current Liabilities | 294 |
| | 3,276 |
| | 2,693 |
| | — |
| | 6,263 |
| Long-Term Debt | — |
| | 6,630 |
| | 25 |
| | — |
| | 6,655 |
| Intercompany Payable | — |
| | 3,483 |
| | — |
| | (3,483 | ) | | — |
| Deferred Income Taxes | 4 |
| | 351 |
| | 786 |
| | — |
| | 1,141 |
| Other Liabilities | 36 |
| | 771 |
| | 1,296 |
| | — |
| | 2,103 |
| Shareholders' Equity (Deficit) | 5,933 |
| | (738 | ) | | 6,383 |
| | (5,645 | ) | | 5,933 |
| Total Liabilities and Shareholders' Equity | $ | 6,267 |
| | $ | 13,773 |
| | $ | 11,183 |
| | $ | (9,128 | ) | | $ | 22,095 |
|
Condensed Consolidating Balance Sheet As of July 28, 2012 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | ASSETS: | | | | | | | | | | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 1,303 |
| | $ | 32 |
| | $ | 269 |
| | $ | — |
| | $ | 1,604 |
| Receivables | — |
| | 76 |
| | 283 |
| | — |
| | 359 |
| Merchandise inventories | — |
| | 2,607 |
| | 2,429 |
| | — |
| | 5,036 |
| Prepaid expenses and other current assets | — |
| | 96 |
| | 291 |
| | — |
| | 387 |
| Income taxes | 20 |
| | — |
| | — |
| | (20 | ) | | — |
| Total Current Assets | 1,323 |
| | 2,811 |
| | 3,272 |
| | (20 | ) | | 7,386 |
| Property and Equipment – net | — |
| | 4,716 |
| | 3,575 |
| | — |
| | 8,291 |
| Goodwill | — |
| | 3,315 |
| | 428 |
| | — |
| | 3,743 |
| Other Intangible Assets – net | — |
| | 138 |
| | 442 |
| | — |
| | 580 |
| Other Assets | 3 |
| | 67 |
| | 495 |
| | — |
| | 565 |
| Deferred Income Tax Assets | 11 |
| | — |
| | — |
| | (11 | ) | | — |
| Intercompany Receivable | 1,281 |
| | — |
| | 2,847 |
| | (4,128 | ) | | — |
| Investment in Subsidiaries | 3,430 |
| | 2,636 |
| | — |
| | (6,066 | ) | | — |
| Total Assets | $ | 6,048 |
| | $ | 13,683 |
| | $ | 11,059 |
| | $ | (10,225 | ) | | $ | 20,565 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | Current Liabilities: | | | | | | | | | | Short-term debt | $ | — |
| | $ | 310 |
| | $ | 3 |
| | $ | — |
| | $ | 313 |
| Merchandise accounts payable | — |
| | 890 |
| | 1,005 |
| | — |
| | 1,895 |
| Accounts payable and accrued liabilities | 113 |
| | 825 |
| | 1,140 |
| | — |
| | 2,078 |
| Income taxes | — |
| | 63 |
| | 115 |
| | (20 | ) | | 158 |
| Deferred income taxes | — |
| | 317 |
| | 93 |
| | — |
| | 410 |
| Total Current Liabilities | 113 |
| | 2,405 |
| | 2,356 |
| | (20 | ) | | 4,854 |
| Long-Term Debt | — |
| | 6,613 |
| | 24 |
| | — |
| | 6,637 |
| Intercompany Payable | — |
| | 4,128 |
| | — |
| | (4,128 | ) | | — |
| Deferred Income Taxes | — |
| | 373 |
| | 772 |
| | (11 | ) | | 1,134 |
| Other Liabilities | 32 |
| | 757 |
| | 1,248 |
| | — |
| | 2,037 |
| Shareholders' Equity (Deficit) | 5,903 |
| | (593 | ) | | 6,659 |
| | (6,066 | ) | | 5,903 |
| Total Liabilities and Shareholders' Equity | $ | 6,048 |
| | $ | 13,683 |
| | $ | 11,059 |
| | $ | (10,225 | ) | | $ | 20,565 |
|
Condensed Consolidating Balance Sheet As of July 30, 2011 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | ASSETS: | | | | | | | | | | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 1,182 |
| | $ | 34 |
| | $ | 279 |
| | $ | — |
| | $ | 1,495 |
| Receivables | — |
| | 59 |
| | 237 |
| | — |
| | 296 |
| Merchandise inventories | — |
| | 2,609 |
| | 2,339 |
| | — |
| | 4,948 |
| Prepaid expenses and other current assets | — |
| | 101 |
| | 282 |
| | — |
| | 383 |
| Income taxes | 4 |
| | — |
| | — |
| | (4 | ) | | — |
| Total Current Assets | 1,186 |
| | 2,803 |
| | 3,137 |
| | (4 | ) | | 7,122 |
| Property and Equipment – net | — |
| | 4,853 |
| | 3,653 |
| | — |
| | 8,506 |
| Goodwill | — |
| | 3,315 |
| | 428 |
| | — |
| | 3,743 |
| Other Intangible Assets – net | — |
| | 168 |
| | 450 |
| | — |
| | 618 |
| Other Assets | 4 |
| | 84 |
| | 431 |
| | — |
| | 519 |
| Deferred Income Tax Assets | 13 |
| | — |
| | — |
| | (13 | ) | | — |
| Intercompany Receivable | 1,829 |
| | — |
| | 2,733 |
| | (4,562 | ) | | — |
| Investment in Subsidiaries | 3,078 |
| | 2,764 |
| | — |
| | (5,842 | ) | | — |
| Total Assets | $ | 6,110 |
| | $ | 13,987 |
| | $ | 10,832 |
| | $ | (10,421 | ) | | $ | 20,508 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | Current Liabilities: | | | | | | | | | | Short-term debt | $ | — |
| | $ | 911 |
| | $ | 3 |
| | $ | — |
| | $ | 914 |
| Merchandise accounts payable | — |
| | 948 |
| | 1,008 |
| | — |
| | 1,956 |
| Accounts payable and accrued liabilities | 113 |
| | 833 |
| | 1,056 |
| | — |
| | 2,002 |
| Income taxes | — |
| | 52 |
| | 71 |
| | (4 | ) | | 119 |
| Deferred income taxes | — |
| | 289 |
| | 91 |
| | — |
| | 380 |
| Total Current Liabilities | 113 |
| | 3,033 |
| | 2,229 |
| | (4 | ) | | 5,371 |
| Long-Term Debt | — |
| | 6,135 |
| | 27 |
| | — |
| | 6,162 |
| Intercompany Payable | — |
| | 4,562 |
| | — |
| | (4,562 | ) | | — |
| Deferred Income Taxes | — |
| | 438 |
| | 912 |
| | (13 | ) | | 1,337 |
| Other Liabilities | 34 |
| | 681 |
| | 960 |
| | — |
| | 1,675 |
| Shareholders' Equity (Deficit) | 5,963 |
| | (862 | ) | | 6,704 |
| | (5,842 | ) | | 5,963 |
| Total Liabilities and Shareholders' Equity | $ | 6,110 |
| | $ | 13,987 |
| | $ | 10,832 |
| | $ | (10,421 | ) | | $ | 20,508 |
|
|
| Condensed Consolidating Statement of Comprehensive Income (Loss) |
Condensed Consolidating Statement of Comprehensive Income For the 13 Weeks Ended July 30, 2011 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | $ | — |
| | $ | 3,033 |
| | $ | 4,515 |
| | $ | (1,609 | ) | | $ | 5,939 |
| Cost of sales | — |
| | (1,792 | ) | | (3,261 | ) | | 1,596 |
| | (3,457 | ) | Gross margin | — |
| | 1,241 |
| | 1,254 |
| | (13 | ) | | 2,482 |
| Selling, general and administrative expenses | (2 | ) | | (1,024 | ) | | (963 | ) | | 13 |
| | (1,976 | ) | Operating income (loss) | (2 | ) | | 217 |
| | 291 |
| | — |
| | 506 |
| Interest (expense) income, net: | | | | | | | | | | External | 1 |
| | (112 | ) | | — |
| | — |
| | (111 | ) | Intercompany | — |
| | (47 | ) | | 47 |
| | — |
| | — |
| Equity in earnings of subsidiaries | 242 |
| | 62 |
| | — |
| | (304 | ) | | — |
| Income before income taxes | 241 |
| | 120 |
| | 338 |
| | (304 | ) | | 395 |
| Federal, state and local income tax expense | — |
| | (25 | ) | | (129 | ) | | — |
| | (154 | ) | Net income | $ | 241 |
| | $ | 95 |
| | $ | 209 |
| | $ | (304 | ) | | $ | 241 |
| Comprehensive income | $ | 255 |
| | $ | 109 |
| | $ | 216 |
| | $ | (325 | ) | | $ | 255 |
|
Condensed Consolidating Statement of Comprehensive Income For the 26 Weeks Ended July 30, 2011 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | $ | — |
| | $ | 6,026 |
| | $ | 9,455 |
| | $ | (3,653 | ) | | $ | 11,828 |
| Cost of sales | — |
| | (3,715 | ) | | (6,954 | ) | | 3,626 |
| | (7,043 | ) | Gross margin | — |
| | 2,311 |
| | 2,501 |
| | (27 | ) | | 4,785 |
| Selling, general and administrative expenses | (4 | ) | | (2,129 | ) | | (1,843 | ) | | 27 |
| | (3,949 | ) | Operating income (loss) | (4 | ) | | 182 |
| | 658 |
| | — |
| | 836 |
| Interest (expense) income, net: | | | | | | | | | | External | 1 |
| | (228 | ) | | — |
| | — |
| | (227 | ) | Intercompany | — |
| | (97 | ) | | 97 |
| | — |
| | — |
| Equity in earnings of subsidiaries | 374 |
| | 154 |
| | — |
| | (528 | ) | | — |
| Income before income taxes | 371 |
| | 11 |
| | 755 |
| | (528 | ) | | 609 |
| Federal, state and local income
tax benefit (expense) | 1 |
| | 31 |
| | (269 | ) | | — |
| | (237 | ) | Net income | $ | 372 |
| | $ | 42 |
| | $ | 486 |
| | $ | (528 | ) | | $ | 372 |
| Comprehensive income | $ | 389 |
| | $ | 59 |
| | $ | 498 |
| | $ | (557 | ) | | $ | 389 |
|
Condensed Consolidating Statement of Comprehensive Income For the 13 Weeks Ended July 28, 2012 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | $ | — |
| | $ | 3,004 |
| | $ | 4,708 |
| | $ | (1,594 | ) | | $ | 6,118 |
| Cost of sales | — |
| | (1,783 | ) | | (3,352 | ) | | 1,580 |
| | (3,555 | ) | Gross margin | — |
| | 1,221 |
| | 1,356 |
| | (14 | ) | | 2,563 |
| Selling, general and administrative expenses | (2 | ) | | (1,090 | ) | | (931 | ) | | 14 |
| | (2,009 | ) | Operating income (loss) | (2 | ) | | 131 |
| | 425 |
| | — |
| | 554 |
| Interest (expense) income, net: | | | | | | | | | | External | — |
| | (104 | ) | | (1 | ) | | — |
| | (105 | ) | Intercompany | — |
| | (36 | ) | | 36 |
| | — |
| | — |
| Equity in earnings of subsidiaries | 279 |
| | 130 |
| | — |
| | (409 | ) | | — |
| Income before income taxes | 277 |
| | 121 |
| | 460 |
| | (409 | ) | | 449 |
| Federal, state and local income
tax benefit (expense) | 2 |
| | 2 |
| | (174 | ) | | — |
| | (170 | ) | Net income | $ | 279 |
| | $ | 123 |
| | $ | 286 |
| | $ | (409 | ) | | $ | 279 |
| Comprehensive income | $ | 303 |
| | $ | 147 |
| | $ | 296 |
| | $ | (443 | ) | | $ | 303 |
|
Condensed Consolidating Statement of Comprehensive Income For the 26 Weeks Ended July 28, 2012 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | $ | — |
| | $ | 6,045 |
| | $ | 9,852 |
| | $ | (3,636 | ) | | $ | 12,261 |
| Cost of sales | — |
| | (3,739 | ) | | (7,181 | ) | | 3,608 |
| | (7,312 | ) | Gross margin | — |
| | 2,306 |
| | 2,671 |
| | (28 | ) | | 4,949 |
| Selling, general and administrative expenses | (4 | ) | | (2,150 | ) | | (1,878 | ) | | 28 |
| | (4,004 | ) | Operating income (loss) | (4 | ) | | 156 |
| | 793 |
| | — |
| | 945 |
| Interest (expense) income, net: | | | | | | | | | | External | 1 |
| | (217 | ) | | (1 | ) | | — |
| | (217 | ) | Intercompany | (1 | ) | | (71 | ) | | 72 |
| | — |
| | — |
| Equity in earnings of subsidiaries | 462 |
| | 193 |
| | — |
| | (655 | ) | | — |
| Income before income taxes | 458 |
| | 61 |
| | 864 |
| | (655 | ) | | 728 |
| Federal, state and local income
tax benefit (expense) | 2 |
| | 37 |
| | (307 | ) | | — |
| | (268 | ) | Net income | $ | 460 |
| | $ | 98 |
| | $ | 557 |
| | $ | (655 | ) | | $ | 460 |
| Comprehensive income | $ | 507 |
| | $ | 145 |
| | $ | 577 |
| | $ | (722 | ) | | $ | 507 |
|
|
| Condensed Consolidating Statement of Cash Flows |
Condensed Consolidating Statement of Cash Flows For the 26 Weeks Ended July 28, 2012 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Cash flows from operating activities: | | | | | | | | | | Net income | $ | 460 |
| | $ | 98 |
| | $ | 557 |
| | $ | (655 | ) | | $ | 460 |
| Equity in earnings of subsidiaries | (462 | ) | | (193 | ) | | — |
| | 655 |
| | — |
| Dividends received from subsidiaries | 323 |
| | — |
| | — |
| | (323 | ) | | — |
| Depreciation and amortization | — |
| | 235 |
| | 278 |
| | — |
| | 513 |
| (Increase) decrease in working capital | (87 | ) | | 75 |
| | (345 | ) | | — |
| | (357 | ) | Other, net | (17 | ) | | 41 |
| | (2 | ) | | — |
| | 22 |
| Net cash provided by operating activities | 217 |
| | 256 |
| | 488 |
| | (323 | ) | | 638 |
| Cash flows from investing activities: | | | | | | | | | | Purchase of property and equipment and capitalized software, net | — |
| | (116 | ) | | (280 | ) | | — |
| | (396 | ) | Other, net | — |
| | — |
| | 3 |
| | — |
| | 3 |
| Net cash used by investing activities | — |
| | (116 | ) | | (277 | ) | | — |
| | (393 | ) | Cash flows from financing activities: | | | | | | | | | | Debt repaid | — |
| | (795 | ) | | (2 | ) | | — |
| | (797 | ) | Dividends paid | (165 | ) | | — |
| | (323 | ) | | 323 |
| | (165 | ) | Common stock acquired, net of
issuance of common stock | (463 | ) | | — |
| | — |
| | — |
| | (463 | ) | Intercompany activity, net | (767 | ) | | 649 |
| | 118 |
| | — |
| | — |
| Other, net | (52 | ) | | — |
| | 9 |
| | — |
| | (43 | ) | Net cash used by financing activities | (1,447 | ) | | (146 | ) | | (198 | ) | | 323 |
| | (1,468 | ) | Net increase (decrease) in cash
and cash equivalents | (1,230 | ) | | (6 | ) | | 13 |
| | — |
| | (1,223 | ) | Cash and cash equivalents at beginning of period | 2,533 |
| | 38 |
| | 256 |
| | — |
| | 2,827 |
| Cash and cash equivalents at end of period | $ | 1,303 |
| | $ | 32 |
| | $ | 269 |
| | $ | — |
| | $ | 1,604 |
|
Condensed Consolidating Statement of Cash Flows For the 26 Weeks Ended July 30, 2011 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Cash flows from operating activities: | | | | | | | | | | Net income | $ | 372 |
| | $ | 42 |
| | $ | 486 |
| | $ | (528 | ) | | $ | 372 |
| Equity in earnings of subsidiaries | (374 | ) | | (154 | ) | | — |
| | 528 |
| | — |
| Dividends received from subsidiaries | 222 |
| | — |
| | — |
| | (222 | ) | | — |
| Depreciation and amortization | — |
| | 257 |
| | 279 |
| | — |
| | 536 |
| (Increase) decrease in working capital | (32 | ) | | 92 |
| | (287 | ) | | — |
| | (227 | ) | Other, net | (13 | ) | | (7 | ) | | (74 | ) | | — |
| | (94 | ) | Net cash provided by operating activities | 175 |
| | 230 |
| | 404 |
| | (222 | ) | | 587 |
| Cash flows from investing activities: | | | | | | | | | | Purchase of property and equipment and capitalized software, net | — |
| | (81 | ) | | (159 | ) | | — |
| | (240 | ) | Other, net | — |
| | 38 |
| | (20 | ) | | — |
| | 18 |
| Net cash used by investing activities | — |
| | (43 | ) | | (179 | ) | | — |
| | (222 | ) | Cash flows from financing activities: | | | | | | | | | | Debt repaid | — |
| | (336 | ) | | (1 | ) | | — |
| | (337 | ) | Dividends paid | (64 | ) | | — |
| | (222 | ) | | 222 |
| | (64 | ) | Issuance of common stock, net of
common stock acquired | 81 |
| | — |
| | — |
| | — |
| | 81 |
| Intercompany activity, net | (153 | ) | | 149 |
| | 4 |
| | — |
| | — |
| Other, net | (31 | ) | | (7 | ) | | 24 |
| | — |
| | (14 | ) | Net cash used by financing activities | (167 | ) | | (194 | ) | | (195 | ) | | 222 |
| | (334 | ) | Net increase (decrease) in cash and
cash equivalents | 8 |
| | (7 | ) | | 30 |
| | — |
| | 31 |
| Cash and cash equivalents at beginning of period | 1,174 |
| | 41 |
| | 249 |
| | — |
| | 1,464 |
| Cash and cash equivalents at end of period | $ | 1,182 |
| | $ | 34 |
| | $ | 279 |
| | $ | — |
| | $ | 1,495 |
|
|