| Condensed Consolidating Balance Sheet |
Condensed Consolidating Balance Sheet As of August 3, 2013 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | ASSETS: | | | | | | | | | | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 1,104 |
| | $ | 35 |
| | $ | 285 |
| | $ | — |
| | $ | 1,424 |
| Receivables | — |
| | 86 |
| | 261 |
| | — |
| | 347 |
| Merchandise inventories | — |
| | 2,759 |
| | 2,598 |
| | — |
| | 5,357 |
| Prepaid expenses and other current assets | — |
| | 94 |
| | 293 |
| | — |
| | 387 |
| Income taxes | 69 |
| | — |
| | — |
| | (69 | ) | | — |
| Total Current Assets | 1,173 |
| | 2,974 |
| | 3,437 |
| | (69 | ) | | 7,515 |
| Property and Equipment – net | — |
| | 4,562 |
| | 3,439 |
| | — |
| | 8,001 |
| Goodwill | — |
| | 3,315 |
| | 428 |
| | — |
| | 3,743 |
| Other Intangible Assets – net | — |
| | 109 |
| | 434 |
| | — |
| | 543 |
| Other Assets | 4 |
| | 69 |
| | 556 |
| | — |
| | 629 |
| Intercompany Receivable | 527 |
| | — |
| | 3,135 |
| | (3,662 | ) | | — |
| Investment in Subsidiaries | 4,273 |
| | 2,757 |
| | — |
| | (7,030 | ) | | — |
| Total Assets | $ | 5,977 |
| | $ | 13,786 |
| | $ | 11,429 |
| | $ | (10,761 | ) | | $ | 20,431 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | Current Liabilities: | | | | | | | | | | Short-term debt | $ | — |
| | $ | 573 |
| | $ | 2 |
| | $ | — |
| | $ | 575 |
| Merchandise accounts payable | — |
| | 966 |
| | 1,098 |
| | — |
| | 2,064 |
| Accounts payable and accrued liabilities | 36 |
| | 887 |
| | 1,120 |
| | — |
| | 2,043 |
| Income taxes | — |
| | 16 |
| | 120 |
| | (69 | ) | | 67 |
| Deferred income taxes | — |
| | 315 |
| | 107 |
| | — |
| | 422 |
| Total Current Liabilities | 36 |
| | 2,757 |
| | 2,447 |
| | (69 | ) | | 5,171 |
| Long-Term Debt | — |
| | 6,317 |
| | 22 |
| | — |
| | 6,339 |
| Intercompany Payable | — |
| | 3,662 |
| | — |
| | (3,662 | ) | | — |
| Deferred Income Taxes | 8 |
| | 441 |
| | 768 |
| | — |
| | 1,217 |
| Other Liabilities | 78 |
| | 620 |
| | 1,151 |
| | — |
| | 1,849 |
| Shareholders' Equity (Deficit) | 5,855 |
| | (11 | ) | | 7,041 |
| | (7,030 | ) | | 5,855 |
| Total Liabilities and Shareholders' Equity | $ | 5,977 |
| | $ | 13,786 |
| | $ | 11,429 |
| | $ | (10,761 | ) | | $ | 20,431 |
|
Condensed Consolidating Balance Sheet As of February 2, 2013 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | ASSETS: | | | | | | | | | | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 1,538 |
| | $ | 41 |
| | $ | 257 |
| | $ | — |
| | $ | 1,836 |
| Receivables | — |
| | 58 |
| | 313 |
| | — |
| | 371 |
| Merchandise inventories | — |
| | 2,804 |
| | 2,504 |
| | — |
| | 5,308 |
| Prepaid expenses and other current assets | — |
| | 97 |
| | 264 |
| | — |
| | 361 |
| Income taxes | 30 |
| | — |
| | — |
| | (30 | ) | | — |
| Total Current Assets | 1,568 |
| | 3,000 |
| | 3,338 |
| | (30 | ) | | 7,876 |
| Property and Equipment – net | — |
| | 4,649 |
| | 3,547 |
| | — |
| | 8,196 |
| Goodwill | — |
| | 3,315 |
| | 428 |
| | — |
| | 3,743 |
| Other Intangible Assets – net | — |
| | 124 |
| | 437 |
| | — |
| | 561 |
| Other Assets | 3 |
| | 71 |
| | 541 |
| | — |
| | 615 |
| Intercompany Receivable | 641 |
| | — |
| | 3,190 |
| | (3,831 | ) | | — |
| Investment in Subsidiaries | 4,027 |
| | 2,595 |
| | — |
| | (6,622 | ) | | — |
| Total Assets | $ | 6,239 |
| | $ | 13,754 |
| | $ | 11,481 |
| | $ | (10,483 | ) | | $ | 20,991 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | Current Liabilities: | | | | | | | | | | Short-term debt | $ | — |
| | $ | 121 |
| | $ | 3 |
| | $ | — |
| | $ | 124 |
| Merchandise accounts payable | — |
| | 733 |
| | 846 |
| | — |
| | 1,579 |
| Accounts payable and accrued liabilities | 119 |
| | 1,023 |
| | 1,468 |
| | — |
| | 2,610 |
| Income taxes | — |
| | 69 |
| | 316 |
| | (30 | ) | | 355 |
| Deferred income taxes | — |
| | 323 |
| | 84 |
| | — |
| | 407 |
| Total Current Liabilities | 119 |
| | 2,269 |
| | 2,717 |
| | (30 | ) | | 5,075 |
| Long-Term Debt | — |
| | 6,783 |
| | 23 |
| | — |
| | 6,806 |
| Intercompany Payable | — |
| | 3,831 |
| | — |
| | (3,831 | ) | | — |
| Deferred Income Taxes | 11 |
| | 410 |
| | 817 |
| | — |
| | 1,238 |
| Other Liabilities | 58 |
| | 596 |
| | 1,167 |
| | — |
| | 1,821 |
| Shareholders' Equity (Deficit) | 6,051 |
| | (135 | ) | | 6,757 |
| | (6,622 | ) | | 6,051 |
| Total Liabilities and Shareholders' Equity | $ | 6,239 |
| | $ | 13,754 |
| | $ | 11,481 |
| | $ | (10,483 | ) | | $ | 20,991 |
|
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 Taxes | 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 Statement of Comprehensive Income (Loss) |
Condensed Consolidating Statement of Comprehensive Income For the 13 Weeks Ended August 3, 2013 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | $ | — |
| | $ | 2,898 |
| | $ | 4,831 |
| | $ | (1,663 | ) | | $ | 6,066 |
| Cost of sales | — |
| | (1,763 | ) | | (3,420 | ) | | 1,650 |
| | (3,533 | ) | Gross margin | — |
| | 1,135 |
| | 1,411 |
| | (13 | ) | | 2,533 |
| Selling, general and administrative expenses | (2 | ) | | (1,054 | ) | | (956 | ) | | 13 |
| | (1,999 | ) | Operating income (loss) | (2 | ) | | 81 |
| | 455 |
| | — |
| | 534 |
| Interest (expense) income, net: | | | | | | | | | | External | — |
| | (96 | ) | | — |
| | — |
| | (96 | ) | Intercompany | — |
| | (39 | ) | | 39 |
| | — |
| | — |
| Equity in earnings of subsidiaries | 282 |
| | 89 |
| | — |
| | (371 | ) | | — |
| Income before income taxes | 280 |
| | 35 |
| | 494 |
| | (371 | ) | | 438 |
| Federal, state and local income
tax benefit (expense) | 1 |
| | 10 |
| | (168 | ) | | — |
| | (157 | ) | Net income | $ | 281 |
| | $ | 45 |
| | $ | 326 |
| | $ | (371 | ) | | $ | 281 |
| Comprehensive income | $ | 305 |
| | $ | 69 |
| | $ | 336 |
| | $ | (405 | ) | | $ | 305 |
|
Condensed Consolidating Statement of Comprehensive Income For the 26 Weeks Ended August 3, 2013 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | $ | — |
| | $ | 5,932 |
| | $ | 10,379 |
| | $ | (3,858 | ) | | $ | 12,453 |
| Cost of sales | — |
| | (3,660 | ) | | (7,616 | ) | | 3,832 |
| | (7,444 | ) | Gross margin | — |
| | 2,272 |
| | 2,763 |
| | (26 | ) | | 5,009 |
| Selling, general and administrative expenses | (5 | ) | | (2,104 | ) | | (1,957 | ) | | 26 |
| | (4,040 | ) | Operating income (loss) | (5 | ) | | 168 |
| | 806 |
| | — |
| | 969 |
| Interest (expense) income, net: | | | | | | | | | | External | — |
| | (193 | ) | | — |
| | — |
| | (193 | ) | Intercompany | — |
| | (79 | ) | | 79 |
| | — |
| | — |
| Equity in earnings of subsidiaries | 501 |
| | 144 |
| | — |
| | (645 | ) | | — |
| Income before income taxes | 496 |
| | 40 |
| | 885 |
| | (645 | ) | | 776 |
| Federal, state and local income
tax benefit (expense) | 2 |
| | 37 |
| | (317 | ) | | — |
| | (278 | ) | Net income | $ | 498 |
| | $ | 77 |
| | $ | 568 |
| | $ | (645 | ) | | $ | 498 |
| Comprehensive income | $ | 546 |
| | $ | 125 |
| | $ | 588 |
| | $ | (713 | ) | | $ | 546 |
|
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 August 3, 2013 (millions) | | | | | | | | | | | | | | | | | | | | | | Parent | | Subsidiary Issuer | | Other Subsidiaries | | Consolidating Adjustments | | Consolidated | Cash flows from operating activities: | | | | | | | | | | Net income | $ | 498 |
| | $ | 77 |
| | $ | 568 |
| | $ | (645 | ) | | $ | 498 |
| Equity in earnings of subsidiaries | (501 | ) | | (144 | ) | | — |
| | 645 |
| | — |
| Dividends received from subsidiaries | 303 |
| | — |
| | — |
| | (303 | ) | | — |
| Depreciation and amortization | — |
| | 235 |
| | 269 |
| | — |
| | 504 |
| (Increase) decrease in working capital | (62 | ) | | 43 |
| | (416 | ) | | — |
| | (435 | ) | Other, net | 18 |
| | 76 |
| | 3 |
| | — |
| | 97 |
| Net cash provided by operating activities | 256 |
| | 287 |
| | 424 |
| | (303 | ) | | 664 |
| Cash flows from investing activities: | | | | | | | | | | Purchase of property and equipment and capitalized software, net | — |
| | (135 | ) | | (176 | ) | | — |
| | (311 | ) | Other, net | — |
| | — |
| | (5 | ) | | — |
| | (5 | ) | Net cash used by investing activities | — |
| | (135 | ) | | (181 | ) | | — |
| | (316 | ) | Cash flows from financing activities: | | | | | | | | | | Debt repaid | — |
| | (6 | ) | | (1 | ) | | — |
| | (7 | ) | Dividends paid | (173 | ) | | — |
| | (303 | ) | | 303 |
| | (173 | ) | Common stock acquired, net of
issuance of common stock | (579 | ) | | — |
| | — |
| | — |
| | (579 | ) | Intercompany activity, net | 145 |
| | (175 | ) | | 30 |
| | — |
| | — |
| Other, net | (83 | ) | | 23 |
| | 59 |
| | — |
| | (1 | ) | Net cash used by
financing activities | (690 | ) | | (158 | ) | | (215 | ) | | 303 |
| | (760 | ) | Net increase (decrease) in cash
and cash equivalents | (434 | ) | | (6 | ) | | 28 |
| | — |
| | (412 | ) | Cash and cash equivalents at beginning of period | 1,538 |
| | 41 |
| | 257 |
| | — |
| | 1,836 |
| Cash and cash equivalents at end of period | $ | 1,104 |
| | $ | 35 |
| | $ | 285 |
| | $ | — |
| | $ | 1,424 |
|
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 |
|
|