Condensed Consolidating Financial Information (Tables)

3 Months Ended

May 03, 2014

Supplemental Condensed Consolidating Balance Sheet

	May 3, 2014
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	79		$	33	$	—		$	112
Merchandise inventories	613			317		—			930
Intercompany receivables	—			684		(684		)	—
Other	116			24		—			140
Total current assets	808			1,058		(684		)	1,182
Property and equipment, net	283			79		—			362
Goodwill	94			—		—			94
Investment in subsidiaries	656			—		(656		)	—
Long-term receivable from Parent	3			2		—			5
Other assets	58			3		—			61
Total assets	$	1,902		$	1,142	$	(1,340	)	$	1,704

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	8		$	305	$	—		$	313
Accrued liabilities and other	186			129		—			315
Current portion of long-term debt	16			—		—			16
Intercompany payable	684			—		(684		)	—
Other	47			—		—			47
Total current liabilities	941			434		(684		)	691
Long-term debt	2,873			—		—			2,873
Other long-term liabilities	73			12		—			85
Total stockholders’ deficit	(1,985		)	696		(656		)	(1,945		)
Total liabilities and stockholders’ deficit	$	1,902		$	1,142	$	(1,340	)	$	1,704

	February 1, 2014
	Parent Company			Subsidiaries		Eliminations			Consolidated
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	190		$	44	$	—		$	234
Merchandise inventories	607			294		—			901
Intercompany receivables	2			645		(645		)	2
Other	114			22		—			136
Total current assets	913			1,005		(645		)	1,273
Property and equipment, net	281			77		—			358
Goodwill	94			—		—			94
Investment in subsidiaries	526			—		(526		)	—
Long-term receivable from Parent	5			3		—			8
Other assets	66			2		—			68
Total assets	$	1,885		$	1,087	$	(1,171	)	$	1,801

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	5		$	363	$	—		$	368
Accrued liabilities and other	229			148		—			377
Current portion of long-term debt	16			—		—			16
Dividend payable to Holdings	30			—		—			30
Intercompany payable	645			—		(645		)	—
Other	43			—		—			43
Total current liabilities	968			511		(645		)	834
Long-term debt	2,878			—		—			2,878
Other long-term liabilities	77			13		—			90
Total stockholders’ deficit	(2,038		)	563		(526		)	(2,001		)
Total liabilities and stockholders’ deficit	$	1,885		$	1,087	$	(1,171	)	$	1,801

	May 4, 2013
	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated
	(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

Supplemental Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended May 3, 2014
	Parent Company			Subsidiaries			Eliminations			Consolidated
	(in millions)

Net sales	$	922		$	587		$	(457	)	$	1,052
Cost of sales and occupancy expense	587			493			(457		)	623
Gross profit	335			94			—			429
Selling, general, and administrative expense	245			37			—			282
Share-based compensation	3			1			—			4
Related party expenses	3			—			—			3
Store pre-opening costs	1			—			—			1
Operating income	83			56			—			139
Interest expense	41			—			—			41
Intercompany charges (income)	14			(14		)	—			—
Equity in earnings of subsidiaries	70			—			(70		)	—
Income before income taxes	98			70			(70		)	98
Provision for income taxes	42			30			(30		)	42
Net income	56			40			(40		)	56

Other comprehensive loss, net of tax:
Foreign currency translation adjustment and other	(1		)	—			—			(1		)
Comprehensive income	$	55		$	40		$	(40	)	$	55

	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	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 loss, net of tax:
Foreign currency translation adjustment and other	(1		)	—			—			(1		)
Comprehensive income	$	45		$	43		$	(43	)	$	45

Supplemental Condensed Consolidating Statement of Cash Flows

	Quarter Ended May 3, 2014
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net cash (used in) provided by operating activities	$	(39	)	$	20		$	(23	)	$	(42	)

Investing activities:
Cash paid for property and equipment	(24		)	(7		)	—			(31		)
Net cash used in investing activities	(24		)	(7		)	—			(31		)

Financing activities:
Net repayments of long-term debt	(4		)	—			—			(4		)
Payment of dividends to Holdings	(30		)	—			—			(30		)
Intercompany dividends	—			(23		)	23			—
Other financing activities	(14		)	(1		)	—			(15		)
Net cash used in financing activities	(48		)	(24		)	23			(49		)

Decrease in cash and equivalents	(111		)	(11		)	—			(122		)
Beginning cash and equivalents	190			44			—			234
Ending cash and equivalents	$	79		$	33		$	—		$	112

	Quarter Ended May 4, 2013
	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net cash (used in) 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 long-term debt	39			—			—			39
Intercompany dividends	—			(24		)	24			—
Other financing activities	(20		)	—			—			(20		)
Net cash provided by (used in) financing activities	19			(24		)	24			19

(Decrease) increase in cash and equivalents	(5		)	4			—			(1		)
Beginning cash and equivalents	37			19			—			56
Ending cash and equivalents	$	32		$	23		$	—		$	55