Condensed Consolidating Information (Tables)

9 Months Ended

Oct. 31, 2015

Condensed Consolidating Information

Condensed Consolidating Balance Sheet

The Men’s Wearhouse, Inc.

Condensed Consolidating Balance Sheet

October 31, 2015

(in thousands)

	The Men’s		Guarantor		Non-Guarantor
	Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	771	$	2,128	$	50,755	$	—		$	53,654
Accounts receivable, net	21,452		353,807		33,203		(341,560		)	66,902
Inventories	252,520		652,080		155,647		—			1,060,247
Other current assets	90,352		69,646		8,073		—			168,071
Total current assets	365,095		1,077,661		247,678		(341,560		)	1,348,874
Property and equipment, net	311,313		197,503		39,665		—			548,481
Rental product, net	121,983		7,150		18,211		—			147,344
Goodwill	6,159		837,532		47,300		—			890,991
Intangible assets, net	213		546,937		21,021		—			568,171
Investments in subsidiaries	2,418,994		—		—		(2,418,994		)	—
Other assets	40,961		858		8,831		(42,132		)	8,518
Total assets	$	3,264,718	$	2,667,641	$	382,706	$	(2,802,686	)	$	3,512,379
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	399,292	$	128,803	$	46,985	$	(341,560	)	$	233,520
Accrued expenses and other current liabilities	146,102		111,308		21,801		—			279,211
Current maturities of long-term debt	7,000		—		—		—			7,000
Total current liabilities	552,394		240,111		68,786		(341,560		)	519,731
Long-term debt, net	1,649,206		—		33,432		(33,432		)	1,649,206
Deferred taxes and other liabilities	77,735		277,783		11,241		(8,700		)	358,059
Shareholders’ equity	985,383		2,149,747		269,247		(2,418,994		)	985,383
Total liabilities and shareholders’ equity	$	3,264,718	$	2,667,641	$	382,706	$	(2,802,686	)	$	3,512,379

The Men’s Wearhouse, Inc.

Condensed Consolidating Balance Sheet

November 1, 2014

(in thousands)

	The Men’s		Guarantor		Non-Guarantor
	Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,214	$	8,719	$	54,783	$	—		$	64,716
Accounts receivable, net	13,165		194,027		44,240		(167,378		)	84,054
Inventories	161,148		756,770		164,436		—			1,082,354
Other current assets	59,408		40,427		7,272		—			107,107
Total current assets	234,935		999,943		270,731		(167,378		)	1,338,231
Property and equipment, net	304,461		224,315		41,003		—			569,779
Rental product, net	97,330		13,094		19,155		—			129,579
Goodwill	6,159		834,929		51,678		—			892,766
Intangible assets, net	320		648,031		24,706		—			673,057
Investments in subsidiaries	2,352,986		—		—		(2,352,986		)	—
Other assets	69,178		680		9,980		(69,806		)	10,032
Total assets	$	3,065,369	$	2,720,992	$	417,253	$	(2,590,170	)	$	3,613,444
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	193,913	$	182,338	$	54,772	$	(167,378	)	$	263,645
Accrued expenses and other current liabilities	105,604		161,769		29,488		—			296,861
Current maturities of long-term debt	11,000		—		—		—			11,000
Total current liabilities	310,517		344,107		84,260		(167,378		)	571,506
Long-term debt, net	1,638,606		—		59,906		(59,906		)	1,638,606
Deferred taxes and other liabilities	80,526		285,293		11,693		(9,900		)	367,612
Shareholders’ equity	1,035,720		2,091,592		261,394		(2,352,986		)	1,035,720
Total liabilities and shareholders’ equity	$	3,065,369	$	2,720,992	$	417,253	$	(2,590,170	)	$	3,613,444

The Men’s Wearhouse, Inc.

Condensed Consolidating Balance Sheet

January 31, 2015

(in thousands)

	The Men’s		Guarantor		Non-Guarantor
	Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	18,262	$	4,857	$	39,142	$	—		$	62,261
Accounts receivable, net	20,304		422,930		35,303		(405,271		)	73,266
Inventories	285,309		510,651		142,376		—			938,336
Other current assets	105,507		58,792		5,510		—			169,809
Total current assets	429,382		997,230		222,331		(405,271		)	1,243,672
Property and equipment, net	306,597		221,454		38,023		—			566,074
Rental product, net	107,908		8,318		16,446		—			132,672
Goodwill	6,159		834,470		47,307		—			887,936
Intangible assets, net	293		645,388		22,578		—			668,259
Investments in subsidiaries	2,405,680		—		—		(2,405,680		)	—
Other assets	42,279		681		9,671		(43,032		)	9,599
Total assets	$	3,298,298	$	2,707,541	$	356,356	$	(2,853,983	)	$	3,508,212
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	449,102	$	120,499	$	45,537	$	(405,271	)	$	209,867
Accrued expenses and other current liabilities	145,943		101,363		23,238		—			270,544
Current maturities of long- term debt	11,000		—		—		—			11,000
Total current liabilities	606,045		221,862		68,775		(405,271		)	491,411
Long-term debt, net	1,637,686		—		33,432		(33,432		)	1,637,686
Deferred taxes and other liabilities	84,778		323,376		10,772		(9,600		)	409,326
Shareholders’ equity	969,789		2,162,303		243,377		(2,405,680		)	969,789
Total liabilities and shareholders’ equity	$	3,298,298	$	2,707,541	$	356,356	$	(2,853,983	)	$	3,508,212

Condensed Consolidating Statement of (Loss) Earnings

The Men’s Wearhouse, Inc.

Condensed Consolidating Statement of (Loss) Earnings

(in thousands)

	The Men’s			Guarantor			Non-Guarantor
	Wearhouse, Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Three months ended October 31, 2015:
Net sales	$	464,380		$	448,712		$	109,306		$	(156,952	)	$	865,446
Cost of sales	241,412			340,652			67,343			(156,952		)	492,455
Gross margin	222,968			108,060			41,963			—			372,991
Operating expenses	186,467			197,899			29,487			(4,461		)	409,392
Operating income (loss)	36,501			(89,839		)	12,476			4,461			(36,401		)
Other income and expenses, net	4,461			—			—			(4,461		)	—
Interest income	682			1,003			40			(1,675		)	50
Interest expense	(27,278		)	(579		)	(275		)	1,675			(26,457		)
Earnings (loss) before income taxes	14,366			(89,415		)	12,241			—			(62,808		)
Provision (benefit) for income taxes.	8,524			(44,859		)	681			—			(35,654		)
Earnings (loss) before equity in net loss of subsidiaries	5,842			(44,556		)	11,560			—			(27,154		)
Equity in loss of subsidiaries	(32,996		)	—			—			32,996			—
Net (loss) earnings attributable to common shareholders	$	(27,154	)	$	(44,556	)	$	11,560		$	32,996		$	(27,154	)
Comprehensive (loss) income	$	(29,400	)	$	(44,556	)	$	9,536		$	35,020		$	(29,400	)
Three months ended November 1, 2014:
Net sales	$	435,285		$	453,905		$	128,429		$	(126,982	)	$	890,637
Cost of sales	344,575			227,532			76,307			(126,982		)	521,432
Gross margin	90,710			226,373			52,122			—			369,205
Operating expenses	178,233			114,729			34,331			(3,263		)	324,030
Operating (loss) income	(87,523		)	111,644			17,791			3,263			45,175
Other income and expenses, net	3,658			(395		)	—			(3,263		)	—
Interest income	329			12			108			(324		)	125
Interest expense	(25,032		)	(40		)	(383		)	324			(25,131		)
(Loss) earnings before income taxes	(108,568		)	111,221			17,516			—			20,169
(Benefit) provision for income taxes	(39,908		)	48,891			4,185			—			13,168
(Loss) earnings before equity in net income of subsidiaries	(68,660		)	62,330			13,331			—			7,001
Equity in earnings of subsidiaries	75,661			—			—			(75,661		)	—
Net earnings including non-controlling interest	7,001			62,330			13,331			(75,661		)	7,001
Net earnings attributable to non-controlling interest	(208		)	—			(208		)	208			(208		)
Net earnings attributable to common shareholders	$	6,793		$	62,330		$	13,123		$	(75,453	)	$	6,793
Comprehensive (loss) income	$	(5,758	)	$	62,330		$	251		$	(62,581	)	$	(5,758	)

The Men’s Wearhouse, Inc.

Condensed Consolidating Statement of Earnings

(in thousands)

	The Men’s			Guarantor			Non-Guarantor
	Wearhouse, Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Nine months ended October 31, 2015:
Net sales	$	1,388,910		$	1,369,352		$	328,755		$	(416,408	)	$	2,670,609
Cost of sales	701,191			1,010,107			202,495			(416,408		)	1,497,385
Gross margin	687,719			359,245			126,260			—			1,173,224
Operating expenses	563,251			414,870			90,649			(12,557		)	1,056,213
Operating income (loss)	124,468			(55,625		)	35,611			12,557			117,011
Other income and expenses, net	11,543			1,014			—			(12,557		)	—
Interest income	1,831			2,672			103			(4,466		)	140
Interest expense	(81,579		)	(1,535		)	(827		)	4,466			(79,475		)
Loss on extinguishment of debt	(12,675		)	—			—			—			(12,675		)
Earnings (loss) before income taxes	43,588			(53,474		)	34,887			—			25,001
Provision (benefit) for income taxes	18,152			(32,771		)	8,626			—			(5,993		)
Earnings (loss) before equity in net income of subsidiaries	25,436			(20,703		)	26,261			—			30,994
Equity in earnings of subsidiaries	5,558			—			—			(5,558		)	—
Net earnings (loss) attributable to common shareholders	$	30,994		$	(20,703	)	$	26,261		$	(5,558	)	$	30,994
Comprehensive income (loss)	$	30,309		$	(20,703	)	$	25,883		$	(5,180	)	$	30,309
Nine months ended November 1, 2014:
Net sales	$	1,303,738		$	1,051,976		$	363,111		$	(394,636	)	$	2,324,189
Cost of sales	774,707			713,272			219,735			(394,636		)	1,313,078
Gross margin	529,031			338,704			143,376			—			1,011,111
Operating expenses	593,263			212,373			100,921			(10,606		)	895,951
Operating (loss) income	(64,232		)	126,331			42,455			10,606			115,160
Other income and expenses, net	9,477			1,129			—			(10,606		)	—
Interest income	1,314			343			262			(1,614		)	305
Interest expense	(39,643		)	(370		)	(1,060		)	1,614			(39,459		)
Loss on extinguishment of debt	(2,158		)	—			—			—			(2,158		)
(Loss) earnings before income taxes	(95,242		)	127,433			41,657			—			73,848
(Benefit) provision for income taxes	(27,733		)	55,672			10,082			—			38,021
(Loss) earnings before equity in net income of subsidiaries	(67,509		)	71,761			31,575			—			35,827
Equity in earnings of subsidiaries	103,336			—			—			(103,336		)	—
Net earnings including non-controlling interest	35,827			71,761			31,575			(103,336		)	35,827
Net earnings attributable to non-controlling interest	(292		)	—			(292		)	292			(292		)
Net earnings attributable to common shareholders	$	35,535		$	71,761		$	31,283		$	(103,044	)	$	35,535
Comprehensive income	$	29,053		$	71,761		$	24,402		$	(96,163	)	$	29,053

Condensed Consolidating Statement of Cash Flows

The Men’s Wearhouse, Inc.

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended October 31, 2015

(in thousands)

	The Men’s			Guarantor			Non-Guarantor
	Wearhouse, Inc.			Subsidiaries			Subsidiaries			Eliminations		Consolidated
Net cash provided by operating activities	$	73,276		$	19,237		$	19,723		$	—	$	112,236
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(55,857		)	(22,147		)	(8,402		)	—		(86,406		)
Proceeds from sales of property and equipment	2,586			27			—			—		2,613
Net cash used in investing activities	(53,271		)	(22,120		)	(8,402		)	—		(83,793		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on new term loan	(6,250		)	—			—			—		(6,250		)
Proceeds from asset-based revolving credit facility	5,500			—			—			—		5,500
Payments on asset-based revolving credit facility	(5,500		)	—			—			—		(5,500		)
Deferred financing costs	(3,566		)	—			—			—		(3,566		)
Cash dividends paid	(26,269		)	—			—			—		(26,269		)
Proceeds from issuance of common stock	2,454			—			—			—		2,454
Tax payments related to vested deferred stock units	(4,538		)	—			—			—		(4,538		)
Excess tax benefits from share-based plans	950			154			—			—		1,104
Repurchases of common stock	(277		)	—			—			—		(277		)
Net cash (used in) provided by financing activities	(37,496		)	154			—			—		(37,342		)
Effect of exchange rate changes	—			—			292			—		292
(Decrease) increase in cash and cash equivalents	(17,491		)	(2,729		)	11,613			—		(8,607		)
Cash and cash equivalents at beginning of period	18,262			4,857			39,142			—		62,261
Cash and cash equivalents at end of period	$	771		$	2,128		$	50,755		$	—	$	53,654

The Men’s Wearhouse, Inc.

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended November 1, 2014

(in thousands)

	The Men’s			Guarantor			Non-Guarantor
	Wearhouse, Inc.			Subsidiaries			Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	360,468		$	(324,183	)	$	22,732		$	—	$	59,017
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(51,329		)	(13,510		)	(7,558		)	—		(72,397		)
Acquisition of business, net of cash	(1,820,308		)	328,915			—			—		(1,491,393		)
Proceeds from sales of property and equipment	160			—			—			—		160
Net cash (used in) provided by investing activities	(1,871,477		)	315,405			(7,558		)	—		(1,563,630		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from new term loan	1,089,000			—			—			—		1,089,000
Payments on previous term loan	(97,500		)	—			—			—		(97,500		)
Proceeds from asset-based revolving credit facility	340,000			—			—			—		340,000
Payments on asset-based revolving credit facility	(340,000		)	—			—			—		(340,000		)
Proceeds from issuance of senior notes	600,000			—			—			—		600,000
Deferred financing costs	(51,072		)	—			—			—		(51,072		)
Cash dividends paid	(26,119		)	—			—			—		(26,119		)
Purchase of non-controlling interest	(6,651		)	—			—			—		(6,651		)
Proceeds from issuance of common stock	7,115			—			—			—		7,115
Tax payments related to vested deferred stock units	(6,907		)	—			—			—		(6,907		)
Excess tax benefits from share-based plans	3,194			542			—			—		3,736
Repurchases of common stock	(251		)	—			—			—		(251		)
Net cash provided by financing activities	1,510,809			542			—			—		1,511,351
Effect of exchange rate changes	—			—			(1,274		)	—		(1,274		)
(Decrease) increase in cash and cash equivalents	(200		)	(8,236		)	13,900			—		5,464
Cash and cash equivalents at beginning of period	1,414			16,955			40,883			—		59,252
Cash and cash equivalents at end of period	$	1,214		$	8,719		$	54,783		$	—	$	64,716