Supplemental Guarantor Financial Information

The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2035 Notes and 2036 Notes 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 July 30, 2016, January 30, 2016 and August 1, 2015 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended July 30, 2016 and August 1, 2015. The Company adopted ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, and ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, effective January 30, 2016. As such, amounts have been recast to include the retrospective application of these standards. For additional information, see Note 2, "New Accounting Pronouncements."

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)

(Unaudited)



	July 30, 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries		Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	890		$	383	$	—		$	1,273
Accounts Receivable, Net	1			212			53		—			266
Inventories	—			1,068			136		—			1,204
Other	—			132			85		—			217
Total Current Assets	1			2,302			657		—			2,960
Property and Equipment, Net	—			1,780			806		—			2,586
Goodwill	—			1,318			30		—			1,348
Trade Names and Other Intangible Assets, Net	—			411			—		—			411
Net Investments in and Advances to/from Consolidated Affiliates	4,508			15,320			1,661		(21,489		)	—
Deferred Income Taxes	—			11			19		—			30
Other Assets	137			34			647		(612		)	206
Total Assets	$	4,646		$	21,176		$	3,820	$	(22,101	)	$	7,541
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	4		$	438		$	351	$	—		$	793
Accrued Expenses and Other	104			481			294		—			879
Current Portion of Long-term Debt	—			—			13		—			13
Income Taxes	(11		)	4			141		—			134
Total Current Liabilities	97			923			799		—			1,819
Deferred Income Taxes	(3		)	(78		)	349		—			268
Long-term Debt	5,702			597			4		(597		)	5,706
Other Long-term Liabilities	1			736			155		(15		)	877
Total Equity (Deficit)	(1,151		)	18,998			2,513		(21,489		)	(1,129		)
Total Liabilities and Equity (Deficit)	$	4,646		$	21,176		$	3,820	$	(22,101	)	$	7,541

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)



	January 30, 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	—		$	2,190		$	358		$	—		$	2,548
Accounts Receivable, Net	1			202			58			—			261
Inventories	—			978			144			—			1,122
Other	—			115			110			—			225
Total Current Assets	1			3,485			670			—			4,156
Property and Equipment, Net	—			1,574			756			—			2,330
Goodwill	—			1,318			—			—			1,318
Trade Names and Other Intangible Assets, Net	—			411			—			—			411
Net Investments in and Advances to/from Consolidated Affiliates	5,368			13,649			1,242			(20,259		)	—
Deferred Income Taxes	—			11			19			—			30
Other Assets	141			40			679			(612		)	248
Total Assets	$	5,510		$	20,488		$	3,366		$	(20,871	)	$	8,493
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	—		$	333		$	335		$	—		$	668
Accrued Expenses and Other	100			519			358			—			977
Current Portion of Long-term Debt	—			—			6			—			6
Income Taxes	(3		)	237			(10		)	—			224
Total Current Liabilities	97			1,089			689			—			1,875
Deferred Income Taxes	(3		)	(86		)	346			—			257
Long-term Debt	5,714			597			1			(597		)	5,715
Other Long-term Liabilities	—			670			248			(14		)	904
Total Equity (Deficit)	(298		)	18,218			2,082			(20,260		)	(258		)
Total Liabilities and Equity (Deficit)	$	5,510		$	20,488		$	3,366		$	(20,871	)	$	8,493

L BRANDS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(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
Accounts Receivable, Net	1			201			55		—			257
Inventories	—			980			126		—			1,106
Other	1			191			128		—			320
Total Current Assets	2			1,825			636		—			2,463
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		)	—
Deferred Income Taxes	—			10			17		—			27
Other Assets	140			34			682		(612		)	244
Total Assets	$	4,121		$	20,672		$	3,767	$	(21,822	)	$	6,738
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		)	(59		)	308		—			246
Long-term Debt	4,720			597			—		(597		)	4,720
Other Long-term Liabilities	—			619			243		(13		)	849
Total Equity (Deficit)	(688		)	18,630			2,623		(21,212		)	(647		)
Total Liabilities and Equity (Deficit)	$	4,121		$	20,672		$	3,767	$	(21,822	)	$	6,738

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Second Quarter 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	2,724		$	808		$	(642	)	$	2,890
Costs of Goods Sold, Buying and Occupancy	—			(1,701		)	(669		)	593			(1,777		)
Gross Profit	—			1,023			139			(49		)	1,113
General, Administrative and Store Operating Expenses	(2		)	(635		)	(106		)	38			(705		)
Operating Income (Loss)	(2		)	388			33			(11		)	408
Interest Expense	(101		)	(11		)	(3		)	14			(101		)
Other Income (Loss)	(36		)	1			108			—			73
Income (Loss) Before Income Taxes	(139		)	378			138			3			380
Provision for Income Taxes	(13		)	72			69			—			128
Equity in Earnings (Loss), Net of Tax	378			223			196			(797		)	—
Net Income (Loss)	$	252		$	529		$	265		$	(794	)	$	252

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Second Quarter 2016
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	252	$	529	$	265		$	(794	)	$	252
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		(18		)	—			(18		)
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		5			—			5
Reclassification of Cash Flow Hedges to Earnings	—		—		(5		)	—			(5		)
Unrealized Loss on Marketable Securities	—		—		(2		)	—			(2		)
Reclassification of Gain on Marketable Securities to Earnings	—		—		—			—			—
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(20		)	—			(20		)
Total Comprehensive Income (Loss)	$	252	$	529	$	245		$	(794	)	$	232

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT 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 (Loss)	—			—			(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 STATEMENT 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:
Foreign Currency Translation	—		—		22			—			22
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		14			—			14
Reclassification of Cash Flow Hedges to Earnings	—		—		(27		)	—			(27		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		9			—			9
Total Comprehensive Income (Loss)	$	202	$	412	$	106		$	(509	)	$	211

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

(in millions)

(Unaudited)



	Year-to-Date 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Sales	$	—		$	5,196		$	1,666		$	(1,358	)	$	5,504
Costs of Goods Sold, Buying and Occupancy	—			(3,240		)	(1,380		)	1,272			(3,348		)
Gross Profit	—			1,956			286			(86		)	2,156
General, Administrative and Store Operating Expenses	(4		)	(1,274		)	(219		)	73			(1,424		)
Operating Income (Loss)	(4		)	682			67			(13		)	732
Interest Expense	(199		)	(20		)	(5		)	25			(199		)
Other Income (Loss)	(36		)	2			114			—			80
Income (Loss) Before Income Taxes	(239		)	664			176			12			613
Provision for Income Taxes	(14		)	134			88			—			208
Equity in Earnings (Loss), Net of Tax	630			285			264			(1,179		)	—
Net Income (Loss)	$	405		$	815		$	352		$	(1,167	)	$	405

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)



	Year-to-Date 2016
	L Brands, Inc.		Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Income (Loss)	$	405	$	815	$	352		$	(1,167	)	$	405
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	—		—		(10		)	—			(10		)
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		(11		)	—			(11		)
Reclassification of Cash Flow Hedges to Earnings	—		—		9			—			9
Unrealized Loss on Marketable Securities	—		—		(3		)	—			(3		)
Reclassification of Gain on Marketable Securities to Earnings	—		—		(3		)	—			(3		)
Total Other Comprehensive Income (Loss), Net of Tax	—		—		(18		)	—			(18		)
Total Comprehensive Income (Loss)	$	405	$	815	$	334		$	(1,167	)	$	387

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT 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 (Loss)	—			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 STATEMENT 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:
Foreign Currency Translation	—		—		12			—			12
Unrealized Gain (Loss) on Cash Flow Hedges	—		—		4			—			4
Reclassification of Cash Flow Hedges to Earnings	—		—		(10		)	—			(10		)
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 STATEMENT OF CASH FLOWS

(in millions)

(Unaudited)



	Year-to-Date 2016
	L Brands, Inc.			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated L Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(258	)	$	490		$	189		$	—		$	421
Investing Activities:
Capital Expenditures	—			(382		)	(115		)	—			(497		)
Return of Capital from Easton Town Center, LLC	—			—			108			—			108
Acquisition, Net of Cash Acquired of $1	—			—			(31		)	—			(31		)
Proceeds from Sale of Marketable Securities	—			—			10			—			10
Net Investments in Consolidated Affiliates	—			—			(38		)	38			—
Other Investing Activities	—			1			15			—			16
Net Cash Used for Investing Activities	—			(381		)	(51		)	38			(394		)
Financing Activities:
Proceeds from the Issuance of Long-term Debt, Net of Issuance Costs	692			—			—			—			692
Payment of Long-term Debt	(742		)	—			—			—			(742		)
Borrowings from Revolving Facilities	—			—			10			—			10
Dividends Paid	(923		)	—			—			—			(923		)
Repurchases of Common Stock	(385		)	—			—			—			(385		)
Excess Tax Benefits from Share-based Compensation	—			33			4			—			37
Net Financing Activities and Advances to/from Consolidated Affiliates	1,603			(1,441		)	(124		)	(38		)	—
Proceeds from Exercise of Stock Options	13			—			—			—			13
Financing Costs and Other	—			(1		)	—			—			(1		)
Net Cash Provided by (Used for) Financing Activities	258			(1,409		)	(110		)	(38		)	(1,299		)
Effects of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(3		)	—			(3		)
Net Increase (Decrease) in Cash and Cash Equivalents	—			(1,300		)	25			—			(1,275		)
Cash and Cash Equivalents, Beginning of Period	—			2,190			358			—			2,548
Cash and Cash Equivalents, End of Period	$	—		$	890		$	383		$	—		$	1,273

L BRANDS, INC.

CONDENSED CONSOLIDATING STATEMENT 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:
Dividends Paid	(880		)	—			—			—		(880		)
Repurchases of Common Stock	(295		)	—			—			—		(295		)
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	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