Supplemental Guarantor Financial Information

3 Months Ended

Apr. 30, 2011

Supplemental Guarantor Financial Information

Supplemental Guarantor Financial Information

17. Supplemental Guarantor Financial Information

The Company's 2019 Notes, 2020 Notes and 2021 Notes are jointly and severally guaranteed on a full and unconditional basis by certain of the Company's wholly owned subsidiaries. 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 April 30, 2011, January 29, 2011 and May 1, 2010 and the Condensed Consolidating Statements of Income and Cash Flows for the periods ended April 30, 2011 and May 1, 2010.

LIMITED BRANDS, INC.

CONSOLIDATED BALANCE SHEETS

(in millions)

(Unaudited)

	April 30, 2011
	Limited Brands, Inc.			Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Limited Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	0		$	1,126	$	431	$	0		$	1,557
Accounts Receivable, Net		5			165		35		0			205
Inventories		0			867		208		0			1,075
Deferred Income Taxes		0			0		0		0			0
Other		0			123		205		(1	)		327
Total Current Assets		5			2,281		879		(1	)		3,164
Property and Equipment, Net		0			916		682		0			1,598
Goodwill		0			1,318		140		0			1,458
Trade Names and Other Intangible Assets, Net		0			411		190		0			601
Net Investments in and Advances to/from Consolidated Affiliates		4,548			17,639		5,005		(27,192	)		0
Other Assets		193			45		603		(647	)		194
Total Assets	$	4,746		$	22,610	$	7,499	$	(27,840	)	$	7,015
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable	$	35		$	336	$	269	$	0		$	640
Accrued Expenses and Other		70			345		274		0			689
Income Taxes		(1	)		41		20		0			60
Total Current Liabilities		104			722		563		0			1,389
Deferred Income Taxes		(6	)		35		189		0			218
Long-term Debt		3,510			597		35		(632	)		3,510
Other Long-term Liabilities		11			565		209		(14	)		771
Total Equity		1,127			20,691		6,503		(27,194	)		1,127
Total Liabilities and Equity	$	4,746		$	22,610	$	7,499	$	(27,840	)	$	7,015

LIMITED BRANDS, INC.

CONSOLIDATED BALANCE SHEETS

(in millions)

	January 29, 2011
	Limited Brands, Inc.			Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Limited Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	0		$	701	$	429	$	0		$	1,130
Accounts Receivable, Net		1			189		42		0			232
Inventories		0			830		202		0			1,032
Deferred Income Taxes		0			30		5		0			35
Other		0			117		47		(1	)		163
Total Current Assets		1			1,867		725		(1	)		2,592
Property and Equipment, Net		0			936		674		0			1,610
Goodwill		0			1,318		133		0			1,451
Trade Names and Other Intangible Assets, Net		0			411		181		0			592
Net Investments in and Advances to/from Consolidated Affiliates		11,835			28,045		14,486		(54,366	)		0
Other Assets		176			55		645		(670	)		206
Total Assets	$	12,012		$	32,632	$	16,844	$	(55,037	)	$	6,451
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable	$	0		$	312	$	233	$	0		$	545
Accrued Expenses and Other		29			420		316		0			765
Income Taxes		(3	)		167		30		0			194
Total Current Liabilities		26			899		579		0			1,504
Deferred Income Taxes		(6	)		28		180		0			202
Long-term Debt		2,507			608		47		(655	)		2,507
Other Long-term Liabilities		12			576		188		(15	)		761
Total Equity		9,473			30,521		15,850		(54,367	)		1,477
Total Liabilities and Equity	$	12,012		$	32,632	$	16,844	$	(55,037	)	$	6,451

LIMITED BRANDS, INC.

CONSOLIDATED BALANCE SHEETS

(in millions)

(Unaudited)

	May 1, 2010
	Limited Brands, Inc.			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Limited Brands, Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents	$	0		$	767	$	421		$	0		$	1,188
Accounts Receivable, Net		1			162		36			0			199
Inventories		0			945		153			0			1,098
Deferred Income Taxes		0			35		(3	)		0			32
Other		0			113		57			0			170
Total Current Assets		1			2,022		664			0			2,687
Property and Equipment, Net		0			1,020		657			0			1,677
Goodwill		0			1,318		130			0			1,448
Trade Names and Other Intangible Assets, Net		0			419		181			0			600
Net Investments in and Advances to/from Consolidated Affiliates		11,928			12,485		6,302			(30,715	)		0
Other Assets		51			89		744			(704	)		180
Total Assets	$	11,980		$	17,353	$	8,678		$	(31,419	)	$	6,592
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable	$	0		$	318	$	167		$	0		$	485
Accrued Expenses and Other		63			305		264			0			632
Income Taxes		(2	)		23		(3	)		0			18
Total Current Liabilities		61			646		428			0			1,135
Deferred Income Taxes		(9	)		37		212			0			240
Long-term Debt		2,523			608		82			(690	)		2,523
Other Long-term Liabilities		14			538		179			(14	)		717
Total Equity		9,391			15,524		7,777			(30,715	)		1,977
Total Liabilities and Equity	$	11,980		$	17,353	$	8,678		$	(31,419	)	$	6,592

LIMITED BRANDS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in millions)

(Unaudited)

	First Quarter 2011
	Limited Brands, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Limited Brands, Inc.
Net Sales	$	0		$	2,061		$	725		$	(569	)	$	2,217
Costs of Goods Sold, Buying and Occupancy		0			(1,285	)		(626	)		536			(1,375	)
Gross Profit		0			776			99			(33	)		842
General, Administrative and Store Operating Expenses		(2	)		(578	)		(76	)		31			(625	)
Operating Income (Loss)		(2	)		198			23			(2	)		217
Interest Expense		(54	)		(9	)		(3	)		11			(55	)
Interest Income		0			3			0			(2	)		1
Other Income (Expense)		0			1			85			0			86
Income (Loss) Before Income Taxes		(56	)		193			105			7			249
Provision (Benefit) for Income Taxes		0			39			45			0			84
Equity in Earnings, Net of Tax		221			314			306			(841	)		0
Net Income (Loss)	$	165		$	468		$	366		$	(834	)	$	165
	First Quarter 2010
	Limited Brands, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Limited Brands, Inc.
Net Sales	$	0		$	1,839		$	528		$	(435	)	$	1,932
Costs of Goods Sold, Buying and Occupancy		0			(1,213	)		(426	)		401			(1,238	)
Gross Profit		0			626			102			(34	)		694
General, Administrative and Store Operating Expenses		(1	)		(481	)		(65	)		38			(509	)
Operating Income (Loss)		(1	)		145			37			4			185
Interest Expense		(60	)		0			(3	)		2			(61	)
Interest Income		0			3			0			(2	)		1
Other Income (Expense)		0			0			62			0			62
Income (Loss) Before Income Taxes		(61	)		148			96			4			187
Provision (Benefit) for Income Taxes		0			31			43			0			74
Equity in Earnings, Net of Tax		174			142			22			(338	)		0
Net Income (Loss)	$	113		$	259		$	75		$	(334	)	$	113

LIMITED BRANDS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

	First Quarter 2011
	Limited Brands, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated Limited Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	1		$	29		$	(48	)	$	0	$	(18	)
Investing Activities:
Capital Expenditures		0			(40	)		(37	)		0		(77	)
Proceeds from Sale of Express Common Stock		0			0			99			0		99
Net Cash Provided by (Used for) Investing Activities		0			(40	)		62			0		22
Financing Activities:
Proceeds from Long-term Debt, Net of Issuance Costs		981			0			0			0		981
Dividends Paid		(64	)		0			0			0		(64	)
Repurchase of Common Stock		(556	)		0			0			0		(556	)
Excess Tax Benefits from Share-based Compensation		0			15			4			0		19
Net Financing Activities and Advances to/from Consolidated Affiliates		(402	)		421			(19	)		0		0
Proceeds from Exercise of Stock Options and Other		40			0			0			0		40
Net Cash Provided by (Used for) Financing Activities		(1	)		436			(15	)		0		420
Effects of Exchange Rate Changes on Cash and Cash Equivalents		0			0			3			0		3
Net Increase (Decrease) in Cash and Cash Equivalents		0			425			2			0		427
Cash and Cash Equivalents, Beginning of Period		0			701			429			0		1,130
Cash and Cash Equivalents, End of Period	$	0		$	1,126		$	431		$	0	$	1,557

	First Quarter 2010
	Limited Brands, Inc.			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Limited Brands, Inc.
Net Cash Provided by (Used for) Operating Activities	$	(46	)	$	(39	)	$	25		$	0		$	(60	)
Investing Activities:
Capital Expenditures		0			(31	)		(13	)		0			(44	)
Return of Capital from Express		0			0			49			0			49
Return of Capital from Limited Stores		0			0			7			0			7
Net Investments in Consolidated Affiliates		0			0			29			(29	)		0
Other Investing Activities		0			0			(1	)		0			(1	)
Net Cash Provided by (Used for) Investing Activities		0			(31	)		71			(29	)		11
Financing Activities:
Payment of Long-term Debt		(200	)		0			0			0			(200	)
Dividends Paid		(373	)		0			0			0			(373	)
Financing Costs		(13	)		0			0			0			(13	)
Repurchase of Common Stock		(2	)		0			0			0			(2	)
Excess Tax Benefits from Share-based Compensation		0			4			1			0			5
Net Financing Activities and Advances to/from Consolidated Affiliates		621			(608	)		(42	)		29			0
Proceeds from Exercise of Stock Options and Other		13			0			0			0			13
Net Cash Provided by (Used for) Financing Activities		46			(604	)		(41	)		29			(570	)
Effects of Exchange Rate Changes on Cash and Cash Equivalents		0			0			3			0			3
Net Increase (Decrease) in Cash and Cash Equivalents		0			(674	)		58			0			(616	)
Cash and Cash Equivalents, Beginning of Period		0			1,441			363			0			1,804
Cash and Cash Equivalents, End of Period	$	0		$	767		$	421		$	0		$	1,188