Condensed Consolidating Financial Information (Tables)

3 Months Ended

May 04, 2013

Condensed Consolidating Financial Information

Schedule of Supplemental Condensed Consolidating Balance Sheet

	May 4, 2013
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	32		$	23	$	—		$	55
Merchandise inventories	588			254		—			842
Intercompany receivables	—			442		(442		)	—
Other	108			22		—			130
Total current assets	728			741		(442		)	1,027
Property and equipment, net	272			69		—			341
Goodwill	94			—		—			94
Investment in subsidiaries	451			—		(451		)	—
Other assets	54			3		—			57
Total assets	$	1,599		$	813	$	(893	)	$	1,519
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	4		$	228	$	—		$	232
Accrued liabilities and other	177			123		—			300
Current portion of long-term debt	198			—		—			198
Intercompany payable	442			—		(442		)	—
Other	35			—		—			35
Total current liabilities	856			351		(442		)	765
Long-term debt	2,887			—		—			2,887
Other long-term liabilities	70			11		—			81
Total stockholders’ deficit	(2,214		)	451		(451		)	(2,214		)
Total liabilities and stockholders’ deficit	$	1,599		$	813	$	(893	)	$	1,519

	February 2, 2013
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	37		$	19	$	—		$	56
Merchandise inventories	590			275		—			865
Intercompany receivables	—			323		(323		)	—
Other	105			21		—			126
Total current assets	732			638		(323		)	1,047
Property and equipment, net	271			67		—			338
Goodwill	94			—		—			94
Investment in subsidiaries	301			—		(301		)	—
Other assets	59			3		—			62
Total assets	$	1,457		$	708	$	(624	)	$	1,541
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	5		$	258	$	—		$	263
Accrued liabilities and other	235			132		—			367
Current portion of long-term debt	150			—		—			150
Intercompany payable	323			—		(323		)	—
Other	39			5		—			44
Total current liabilities	752			395		(323		)	824
Long-term debt	2,891			—		—			2,891
Other long-term liabilities	73			12		—			85
Total stockholders’ deficit	(2,259		)	301		(301		)	(2,259		)
Total liabilities and stockholders’ deficit	$	1,457		$	708	$	(624	)	$	1,541

	April 28, 2012
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	372		$	13	$	—		$	385
Merchandise inventories	577			297		—			874
Intercompany receivables	—			570		(570		)	—
Other	104			20		—			124
Total current assets	1,053			900		(570		)	1,383
Property and equipment, net	250			60		—			310
Goodwill	95			—		—			95
Investment in subsidiaries	563			—		(563		)	—
Other assets	74			3		—			77
Total assets	$	2,035		$	963	$	(1,133	)	$	1,865
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	10		$	270	$	—		$	280
Accrued liabilities and other	269			119		—			388
Current portion of long-term debt	127			—		—			127
Intercompany payable	570			—		(570		)	—
Other	29			—		—			29
Total current liabilities	1,005			389		(570		)	824
Long-term debt	3,363			—		—			3,363
Other long-term liabilities	85			11		—			96
Total stockholders’ deficit	(2,418		)	563		(563		)	(2,418		)
Total liabilities and stockholders’ deficit	$	2,035		$	963	$	(1,133	)	$	1,865

Schedule of Supplemental Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended May 4, 2013
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	869		$	547		$	(423	)	$	993
Cost of sales and occupancy expense	556			453			(423		)	586
Gross profit	313			94			—			407
Selling, general, and administrative expense	233			38			—			271
Related party expenses	4			—			—			4
Store pre-opening costs	2			—			—			2
Operating income	74			56			—			130
Interest expense	47			—			—			47
Refinancing costs and losses on early extinguishment of debt	7			—			—			7
Intercompany charges (income)	13			(13		)	—			—
Equity in earnings of subsidiaries	69			—			(69		)	—
Income before income taxes	76			69			(69		)	76
Provision for income taxes	29			26			(26		)	29
Net income	47			43			(43		)	47
Other comprehensive income, net of tax:
Actuarial loss on pension plan	(1		)	—			—			(1		)
Comprehensive income	$	46		$	43		$	(43	)	$	46

	Quarter Ended April 28, 2012
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	861		$	549		$	(432	)	$	978
Cost of sales and occupancy expense	536			462			(432		)	566
Gross profit	325			87			—			412
Selling, general, and administrative expense	225			35			—			260
Related party expenses	3			—			—			3
Store pre-opening costs	1			—			—			1
Operating income	96			52			—			148
Interest expense	66			—			—			66
Other (income) and expense, net	(1		)	—			—			(1		)
Intercompany charges (income)	17			(17		)	—			—
Equity in earnings of subsidiaries	69			—			(69		)	—
Income before income taxes	83			69			(69		)	83
Provision for income taxes	30			25			(25		)	30
Net income	53			44			(44		)	53
Other comprehensive income, net of tax:
Foreign currency translation adjustment	2			—			—			2
Comprehensive income	$	55		$	44		$	(44	)	$	55

Schedule of Supplemental Condensed Consolidating Statement of Cash Flows

	Quarter Ended May 4, 2013
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net cash provided by operating activities	$	(8	)	$	34		$	(24	)	$	2
Investing activities:
Cash paid for property and equipment	(16		)	(6		)	—			(22		)
Net cash used in investing activities	(16		)	(6		)	—			(22		)
Financing activities:
Net repayments of short-term debt	39			—			—			39
Intercompany dividends	—			(24		)	24			—
Other financing activities	(20		)	—			—			(20		)
Net cash used in financing activities	19			(24		)	24			19
Decrease in cash and equivalents	(5		)	4			—			(1		)
Beginning cash and equivalents	37			19			—			56
Ending cash and equivalents	$	32		$	23		$	—		$	55

	Quarter Ended April 28, 2012
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net cash provided by operating activities	$	33		$	25		$	(17	)	$	41
Investing activities:
Cash paid for property and equipment	(15		)	(3		)	—			(18		)
Net cash used in investing activities	(15		)	(3		)	—			(18		)
Financing activities:
Intercompany dividends	—			(17		)	17			—
Other financing activities	(9		)	—			—			(9		)
Net cash used in financing activities	(9		)	(17		)	17			(9		)
Increase in cash and equivalents	9			5			—			14
Beginning cash and equivalents	363			8			—			371
Ending cash and equivalents	$	372		$	13		$	—		$	385