Supplemental Guarantor Financial Information

The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes and 2023 Notes are jointly and severally guaranteed on a full and unconditional basis by certain of the Company’s 100% owned subsidiaries ("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 1, 2015, January 31, 2015 and August 2, 2014 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended August 1, 2015 and August 2, 2014. In the fourth quarter 2014, the Company added a subsidiary to the Guarantors. Accordingly, the supplemental financial information has been recast for all periods presented.

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)

(Unaudited)



	August 1, 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	453		$	327		$	—		$	780
Marketable Securities	—			50			—			—			50
Accounts Receivable, Net	1			201			55			—			257
Inventories	—			980			126			—			1,106
Deferred Income Taxes	—			37			(2		)	—			35
Other	1			141			128			—			270
Total Current Assets	2			1,862			634			—			2,498
Property and Equipment, Net	—			1,485			790			—			2,275
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	3,979			15,589			1,642			(21,210		)	—
Other Assets	179			40			695			(612		)	302
Total Assets	$	4,160		$	20,705		$	3,761		$	(21,822	)	$	6,804
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	7		$	385		$	333		$	—		$	725
Accrued Expenses and Other	85			500			255			—			840
Income Taxes	—			—			5			—			5
Total Current Liabilities	92			885			593			—			1,570
Deferred Income Taxes	(3		)	(26		)	302			—			273
Long-term Debt	4,759			597			—			(597		)	4,759
Other Long-term Liabilities	—			619			243			(13		)	849
Total Equity (Deficit)	(688		)	18,630			2,623			(21,212		)	(647		)
Total Liabilities and Equity (Deficit)	$	4,160		$	20,705		$	3,761		$	(21,822	)	$	6,804

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)



	January 31, 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	1,462		$	219		$	—		$	1,681
Accounts Receivable, Net	1			197			54			—			252
Inventories	—			919			117			—			1,036
Deferred Income Taxes	—			34			(1		)	—			33
Other	—			146			84			—			230
Total Current Assets	1			2,758			473			—			3,232
Property and Equipment, Net	—			1,385			892			—			2,277
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,635			14,003			1,405			(20,043		)	—
Other Assets	188			35			693			(610		)	306
Total Assets	$	4,824		$	19,910		$	3,463		$	(20,653	)	$	7,544
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	300		$	313		$	—		$	613
Accrued Expenses and Other	83			495			322			—			900
Income Taxes	(4		)	183			(13		)	—			166
Total Current Liabilities	79			978			622			—			1,679
Deferred Income Taxes	(4		)	(32		)	297			—			261
Long-term Debt	4,765			597			—			(597		)	4,765
Other Long-term Liabilities	—			609			224			(13		)	820
Total Equity (Deficit)	(16		)	17,758			2,320			(20,043		)	19
Total Liabilities and Equity (Deficit)	$	4,824		$	19,910		$	3,463		$	(20,653	)	$	7,544

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(in millions)

(Unaudited)



	August 2, 2014
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	920		$	227		$	—		$	1,147
Accounts Receivable, Net	1			175			57			—			233
Inventories	—			947			128			—			1,075
Deferred Income Taxes	—			43			(16		)	—			27
Other	—			131			86			—			217
Total Current Assets	1			2,216			482			—			2,699
Property and Equipment, Net	—			1,295			869			—			2,164
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,337			15,123			1,158			(20,618		)	—
Other Assets	184			21			685			(612		)	278
Total Assets	$	4,522		$	20,384		$	3,194		$	(21,230	)	$	6,870
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	361		$	261		$	—		$	622
Accrued Expenses and Other	88			413			242			—			743
Current Portion of Long-term Debt	214			—			—			—			214
Income Taxes	—			(12		)	13			—			1
Total Current Liabilities	302			762			516			—			1,580
Deferred Income Taxes	(4		)	(18		)	251			—			229
Long-term Debt	4,758			597			—			(597		)	4,758
Other Long-term Liabilities	1			586			233			(14		)	806
Total Equity (Deficit)	(535		)	18,457			2,194			(20,619		)	(503		)
Total Liabilities and Equity (Deficit)	$	4,522		$	20,384		$	3,194		$	(21,230	)	$	6,870

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,588		$	814		$	(637	)	$	2,765
Costs of Goods Sold, Buying and Occupancy	—			(1,607		)	(705		)	661			(1,651		)
Gross Profit	—			981			109			24			1,114
General, Administrative and Store Operating Expenses	(2		)	(629		)	(106		)	26			(711		)
Operating Income (Loss)	(2		)	352			3			50			403
Interest Expense	(78		)	(4		)	(3		)	7			(78		)
Other Income	—			—			(2		)	—			(2		)
Income (Loss) Before Income Taxes	(80		)	348			(2		)	57			323
Provision for Income Taxes	—			90			31			—			121
Equity in Earnings (Loss), Net of Tax	282			154			130			(566		)	—
Net Income (Loss)	$	202		$	412		$	97		$	(509	)	$	202

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2015
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	202	$	412	$	97		$	(509	)	$	202
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		(27		)	—			(27		)
Foreign Currency Translation	—		—		22			—			22
Unrealized Loss on Cash Flow Hedges	—		—		14			—			14
Total Other Comprehensive Income (Loss), Net of Tax	—		—		9			—			9
Total Comprehensive Income (Loss)	$	202	$	412	$	106		$	(509	)	$	211

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2014
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,479		$	773		$	(577	)	$	2,675
Costs of Goods Sold, Buying and Occupancy	—			(1,549		)	(630		)	548			(1,631		)
Gross Profit	—			930			143			(29		)	1,044
General, Administrative and Store Operating Expenses	(1		)	(593		)	(104		)	30			(668		)
Operating Income (Loss)	(1		)	337			39			1			376
Interest Expense	(82		)	(8		)	(2		)	10			(82		)
Other Income	—			—			2			—			2
Income (Loss) Before Income Taxes	(83		)	329			39			11			296
Provision for Income Taxes	—			56			52			—			108
Equity in Earnings (Loss), Net of Tax	271			79			81			(431		)	—
Net Income (Loss)	$	188		$	352		$	68		$	(420	)	$	188

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2014
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	188	$	352	$	68		$	(420	)	$	188
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		2			—			2
Foreign Currency Translation	—		—		(1		)	—			(1		)
Unrealized Loss on Cash Flow Hedges	—		—		(5		)	—			(5		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(4		)	—			(4		)
Total Comprehensive Income (Loss)	$	188	$	352	$	64		$	(420	)	$	184

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	4,957		$	1,630		$	(1,310	)	$	5,277
Costs of Goods Sold, Buying and Occupancy	—			(3,031		)	(1,321		)	1,245			(3,107		)
Gross Profit	—			1,926			309			(65		)	2,170
General, Administrative and Store Operating Expenses	(6		)	(1,245		)	(202		)	58			(1,395		)
Operating Income (Loss)	(6		)	681			107			(7		)	775
Interest Expense	(158		)	(12		)	(5		)	17			(158		)
Other Income	—			4			72			—			76
Income (Loss) Before Income Taxes	(164		)	673			174			10			693
Provision for Income Taxes	—			168			72			—			240
Equity in Earnings (Loss), Net of Tax	617			379			253			(1,249		)	—
Net Income (Loss)	$	453		$	884		$	355		$	(1,239	)	$	453

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2015
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	453	$	884	$	355		$	(1,239	)	$	453
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		(10		)	—			(10		)
Foreign Currency Translation	—		—		12			—			12
Unrealized Loss on Cash Flow Hedges	—		—		4			—			4
Total Other Comprehensive Income (Loss), Net of Tax	—		—		6			—			6
Total Comprehensive Income (Loss)	$	453	$	884	$	361		$	(1,239	)	$	459

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2014
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	4,710		$	1,557		$	(1,201	)	$	5,066
Costs of Goods Sold, Buying and Occupancy	—			(2,908		)	(1,277		)	1,145			(3,040		)
Gross Profit	—			1,802			280			(56		)	2,026
General, Administrative and Store Operating Expenses	(4		)	(1,161		)	(207		)	58			(1,314		)
Operating Income (Loss)	(4		)	641			73			2			712
Interest Expense	(166		)	(15		)	(4		)	19			(166		)
Other Income	—			—			5			—			5
Income (Loss) Before Income Taxes	(170		)	626			74			21			551
Provision for Income Taxes	(1		)	118			89			—			206
Equity in Earnings (Loss), Net of Tax	514			258			250			(1,022		)	—
Net Income (Loss)	$	345		$	766		$	235		$	(1,001	)	$	345

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2014
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	345	$	766	$	235		$	(1,001	)	$	345
Other Comprehensive Income (Loss), Net of Tax:
Reclassification of Cash Flow Hedges to Earnings	—		—		8			—			8
Foreign Currency Translation	—		—		(3		)	—			(3		)
Unrealized Loss on Cash Flow Hedges	—		—		(13		)	—			(13		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(8		)	—			(8		)
Total Comprehensive Income (Loss)	345		766		227			(1,001		)	337

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2015
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(147	)	$	481		$	41		$	—	$	375
Investing Activities:
Capital Expenditures	—			(254		)	(104		)	—		(358		)
Proceeds from the Sale of Assets	—			—			135			—		135
Proceeds from Divestiture of Third-party Apparel Sourcing Business	—			1			84			—		85
Purchase of Marketable Securities	—			(50		)	—			—		(50		)
Other Investing Activities	—			—			1			—		1
Net Cash Provided by (Used for) Investing Activities	—			(303		)	116			—		(187		)
Financing Activities:
Repurchase of Common Stock	(295		)	—			—			—		(295		)
Dividends Paid	(880		)	—			—			—		(880		)
Excess Tax Benefits from Share-based Compensation	—			53			8			—		61
Net Financing Activities and Advances to/from Consolidated Affiliates	1,299			(1,240		)	(59		)	—		—
Proceeds from Exercise of Stock Options and Other	23			—			—			—		23
Net Cash Provided by (Used for) Financing Activities	147			(1,187		)	(51		)	—		(1,091		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			2			—		2
Net Increase (Decrease) in Cash and Cash Equivalents	—			(1,009		)	108			—		(901		)
Cash and Cash Equivalents, Beginning of Period	—			1,462			219			—		1,681
Cash and Cash Equivalents, End of Period	$	—		$	453		$	327		$	—	$	780

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2014
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations		Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(172	)	$	514		$	104		$	—	$	446
Investing Activities:
Capital Expenditures	—			(248		)	(101		)	—		(349		)
Other Investing Activities	—			—			15			—		15
Net Cash Used for Investing Activities	—			(248		)	(86		)	—		(334		)
Financing Activities:
Borrowings from Revolving Facility	—			—			5			—		5
Repayments on Revolving Facility	—			—			(5		)	—		(5		)
Repurchase of Common Stock	(48		)	—			—			—		(48		)
Dividends Paid	(491		)	—			—			—		(491		)
Excess Tax Benefits from Share-based Compensation	—			31			6			—		37
Net Financing Activities and Advances to/from Consolidated Affiliates	694			(730		)	36			—		—
Proceeds from Exercise of Stock Options and Other	22			—			—			—		22
Financing Costs	(5		)	—			—			—		(5		)
Net Cash Provided by (Used for) Financing Activities	172			(699		)	42			—		(485		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			1			—		1
Net Increase (Decrease) in Cash and Cash Equivalents	—			(433		)	61			—		(372		)
Cash and Cash Equivalents, Beginning of Period	—			1,353			166			—		1,519
Cash and Cash Equivalents, End of Period	$	—		$	920		$	227		$	—	$	1,147