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
	(Restated)			(Restated)		(Restated)			(Restated)
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	32		$	23	$	—		$	55
Merchandise inventories	588			255		—			843
Intercompany receivables	—			442		(442		)	—
Other	108			22		—			130
Total current assets	728			742		(442		)	1,028
Property and equipment, net	272			69		—			341
Goodwill	94			—		—			94
Investment in subsidiaries	430			—		(430		)	—
Other assets	69			3		—			72
Total assets	$	1,593		$	814	$	(872	)	$	1,535
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	4		$	228	$	—		$	232
Accrued liabilities and other	177			123		—			300
Share-based compensation	23			13		—			36
Current portion of long-term debt	198			—		—			198
Intercompany payable	442			—		(442		)	—
Other	31			—		—			31
Total current liabilities	875			364		(442		)	797
Long-term debt	2,887			—		—			2,887
Share-based compensation	19			9		—			28
Other long-term liabilities	70			11		—			81
Total stockholders’ deficit	(2,258		)	430		(430		)	(2,258		)
Total liabilities and stockholders’ deficit	$	1,593		$	814	$	(872	)	$	1,535

	February 2, 2013
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(Restated)
	(In millions)
ASSETS
Current assets:
Cash and equivalents	$	37		$	19	$	—		$	56
Merchandise inventories	591			271		—			862
Intercompany receivables	—			329		(329		)	—
Other	105			21		—			126
Total current assets	733			640		(329		)	1,044
Property and equipment, net	271			67		—			338
Goodwill, net	94			—		—			94
Investment in subsidiaries	284			—		(284		)	—
Other assets	76			3		—			79
Total assets	$	1,458		$	710	$	(613	)	$	1,555
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	5			258		—			263
Accrued liabilities and other	235			132		—			367
Share-based Compensation	22			13					35
Current portion of long-term debt	150			—		—			150
Intercompany payable	329			—		(329		)	—
Other	36			5		—			41
Total current liabilities	777			408		(329		)	856
Long-term debt	2,891			—		—			2,891
Other long-term liabilities	73			12		—			85
Shared based Compensation	21			6					27
Total stockholders’ deficit	(2,304		)	284		(284		)	(2,304		)
Total liabilities and stockholders’ deficit	$	1,458		$	710	$	(613	)	$	1,555

	April 28, 2012
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(Restated)			(Restated)		(Restated)			(Restated)
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	372		$	13	$	—		$	385
Merchandise inventories	577			303		—			880
Intercompany receivables	—			570		(570		)	—
Other	104			20		—			124
Total current assets	1,053			906		(570		)	1,389
Property and equipment, net	250			60		—			310
Goodwill	95			—		—			95
Investment in subsidiaries	552			—		(552		)	—
Other assets	87			3		—			90
Total assets	$	2,037		$	969	$	(1,122	)	$	1,884
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	10		$	270	$	—		$	280
Accrued liabilities and other	269			119		—			388
Share based compensation liability	18			10		—			28
Current portion of long-term debt	127			—		—			127
Intercompany payable	570			—		(570		)	—
Other	28			—		—			28
Total current liabilities	1,022			399		(570		)	851
Long-term debt	3,363			—		—			3,363
Share based compensation liability	15			7		—			22
Other long-term liabilities	85			11		—			96
Total stockholders’ deficit	(2,448		)	552		(552		)	(2,448		)
Total liabilities and stockholders’ deficit	$	2,037		$	969	$	(1,122	)	$	1,884

Schedule of Supplemental Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended May 4, 2013
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(Restated)			(Restated)			(Restated)			(Restated)
	(in millions)
Net sales	$	869		$	547		$	(423	)	$	993
Cost of sales and occupancy expense	555			452			(423		)	584
Gross profit	314			95			—			409
Selling, general, and administrative expense	234			38			—			272
Share-based compensation	2			1			—			3
Related party expenses	4			—			—			4
Store pre-opening costs	2			—			—			2
Operating income	72			56			—			128
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	74			69			(69		)	74
Provision for income taxes	28			26			(26		)	28
Net income	46			43			(43		)	46
Other comprehensive income, net of tax:
Foreign currency translation adjustment and other	(1		)	—			—			(1		)
Comprehensive income	$	45		$	43		$	(43	)	$	45

	Quarter Ended April 28, 2012
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(Restated)			(Restated)			(Restated)			(Restated)
	(in millions)
Net sales	$	861		$	549		$	(432	)	$	978
Cost of sales and occupancy expense	537			462			(432		)	567
Gross profit	324			87			—			411
Selling, general, and administrative expense	224			35			—			259
Share-based compensation	4			—			—			4
Related party expenses	3			—			—			3
Store pre-opening costs	1			—			—			1
Operating income	92			52			—			144
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	79			69			(69		)	79
Provision for income taxes	28			25			(25		)	28
Net income	51			44			(44		)	51
Other comprehensive income, net of tax:
Foreign currency translation adjustment and other	2			—			—			2
Comprehensive income	$	53		$	44		$	(44	)	$	53

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