Condensed Consolidating Information (Tables)

6 Months Ended

Jul. 29, 2017

Condensed Consolidating Information

Condensed Consolidating Balance Sheet

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

July 29, 2017

(in thousands)

	Tailored		The Men's		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	13,482	$	1,924	$	97,335	$	—	$	112,741
Accounts receivable, net		7,380		18,103		430,884		102,613		(487,080)		71,900
Inventories		—		186,831		403,875		354,077		—		944,783
Other current assets		7,310		204,477		26,431		9,346		(192,132)		55,432
Total current assets		14,690		422,893		863,114		563,371		(679,212)		1,184,856
Property and equipment, net		—		218,122		204,641		36,767		—		459,530
Rental product, net		—		116,525		4,894		17,978		—		139,397
Goodwill		—		6,160		68,510		45,210		—		119,880
Intangible assets, net		—		24		156,307		13,782		—		170,113
Investments in subsidiaries		(16,512)		1,436,555		—		—		(1,420,043)		—
Other assets		—		4,790		897		6,861		(6,600)		5,948
Total assets	$	(1,822)	$	2,205,069	$	1,298,363	$	683,969	$	(2,105,855)	$	2,079,724
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	26,528	$	480,565	$	60,420	$	59,723	$	(487,080)	$	140,156
Accrued expenses and other current liabilities		17,967		119,314		113,058		217,443		(184,856)		282,926
Current portion of long-term debt		—		8,750		—		—		—		8,750
Total current liabilities		44,495		608,629		173,478		277,166		(671,936)		431,832
Long-term debt, net		—		1,532,255		—		—		—		1,532,255
Deferred taxes, net and other liabilities		359		80,697		84,509		10,624		(13,876)		162,313
Shareholders' (deficit) equity		(46,676)		(16,512)		1,040,376		396,179		(1,420,043)		(46,676)
Total liabilities and shareholders' (deficit) equity	$	(1,822)	$	2,205,069	$	1,298,363	$	683,969	$	(2,105,855)	$	2,079,724

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

July 30, 2016

(in thousands)

	Tailored		The Men's		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	1,245	$	1,813	$	8,372	$	—	$	11,430
Accounts receivable, net		7,373		18,217		256,591		28,754		(226,587)		84,348
Inventories		—		198,656		686,178		138,769		—		1,023,603
Other current assets		3,562		18,087		52,709		44,082		(37,327)		81,113
Total current assets		10,935		236,205		997,291		219,977		(263,914)		1,200,494
Property and equipment, net		—		254,315		219,595		36,610		—		510,520
Rental product, net		—		142,198		11,066		18,205		—		171,469
Goodwill		—		6,160		68,510		43,637		—		118,307
Intangible assets, net		—		132		158,351		16,269		—		174,752
Investments in subsidiaries		(82,294)		1,394,831		—		—		(1,312,537)		—
Other assets		1,498		6,457		935		7,922		(7,800)		9,012
Total assets	$	(69,861)	$	2,040,298	$	1,455,748	$	342,620	$	(1,584,251)	$	2,184,554
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	7,008	$	247,569	$	98,318	$	43,512	$	(226,587)	$	169,820
Accrued expenses and other current liabilities		9,431		193,497		109,835		21,421		(37,327)		296,857
Current portion of long-term debt		—		14,000		—		—		—		14,000
Total current liabilities		16,439		455,066		208,153		64,933		(263,914)		480,677
Long-term debt, net		—		1,600,402		—		—		—		1,600,402
Deferred taxes, net and other liabilities		2,350		67,124		119,773		10,678		(7,800)		192,125
Shareholders' (deficit) equity		(88,650)		(82,294)		1,127,822		267,009		(1,312,537)		(88,650)
Total liabilities and shareholders' (deficit) equity	$	(69,861)	$	2,040,298	$	1,455,748	$	342,620	$	(1,584,251)	$	2,184,554

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

January 28, 2017

(in thousands)

	Tailored		The Men's		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	1,002	$	1,881	$	68,006	$	—	$	70,889
Accounts receivable, net		7,376		15,499		476,742		56,777		(490,680)		65,714
Inventories		—		230,264		438,167		287,081		—		955,512
Other current assets		12,773		134,225		28,436		8,448		(110,280)		73,602
Total current assets		20,149		380,990		945,226		420,312		(600,960)		1,165,717
Property and equipment, net		—		232,090		216,248		35,827		—		484,165
Rental product, net		—		131,287		3,369		17,954		—		152,610
Goodwill		—		6,160		68,510		42,356		—		117,026
Intangible assets, net		—		78		157,270		14,311		—		171,659
Investments in subsidiaries		(109,788)		1,425,622		—		—		(1,315,834)		—
Other assets		—		5,615		959		7,321		(7,200)		6,695
Total assets	$	(89,639)	$	2,181,842	$	1,391,582	$	538,081	$	(1,923,994)	$	2,097,872
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	15,352	$	509,572	$	82,337	$	60,799	$	(490,680)	$	177,380
Accrued expenses and other current liabilities		2,627		111,617		129,420		135,777		(110,280)		269,161
Current portion of long-term debt		—		13,379		—		—		—		13,379
Total current liabilities		17,979		634,568		211,757		196,576		(600,960)		459,920
Long-term debt, net		—		1,582,150		—		—		—		1,582,150
Deferred taxes, net and other liabilities		—		74,912		85,477		10,231		(7,200)		163,420
Shareholders' (deficit) equity		(107,618)		(109,788)		1,094,348		331,274		(1,315,834)		(107,618)
Total liabilities and shareholders' (deficit) equity	$	(89,639)	$	2,181,842	$	1,391,582	$	538,081	$	(1,923,994)	$	2,097,872

Condensed Consolidating Statement of Earnings (Loss)

Tailored Brands, Inc.

Condensed Consolidating Statement of Earnings (Loss)

(in thousands)

	Tailored		The Men's		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Three Months Ended July 29, 2017
Net sales	$	—	$	457,870	$	369,476		135,125	$	(111,713)	$	850,758
Cost of sales		—		208,789		265,051		91,935		(111,713)		454,062
Gross margin		—		249,081		104,425		43,190		—		396,696
Operating expenses		779		134,389		138,023		28,904		(13,864)		288,231
Operating (loss) income		(779)		114,692		(33,598)		14,286		13,864		108,465
Other income and expenses, net		—		—		14,138		(274)		(13,864)		—
Interest income		242		1,689		1,909		93		(3,835)		98
Interest expense		—		(27,018)		(206)		(1,778)		3,835		(25,167)
Gain on extinguishment of debt, net		—		3,281		—		—		—		3,281
(Loss) earnings before income taxes		(537)		92,644		(17,757)		12,327		—		86,677
(Benefit) provision for income taxes		(167)		30,215		(6,205)		4,363		—		28,206
(Loss) earnings before equity in net income of subsidiaries		(370)		62,429		(11,552)		7,964		—		58,471
Equity in earnings of subsidiaries		58,841		(3,588)		—		—		(55,253)		—
Net earnings (loss)	$	58,471	$	58,841	$	(11,552)	$	7,964	$	(55,253)	$	58,471
Comprehensive income (loss)	$	72,498	$	58,544	$	(11,552)	$	22,288	$	(69,280)	$	72,498
Three Months Ended July 30, 2016
Net sales	$	—	$	481,585	$	431,149	$	112,816	$	(115,866)	$	909,684
Cost of sales		—		226,104		325,754		63,388		(115,866)		499,380
Gross margin		—		255,481		105,395		49,428		—		410,304
Operating expenses		863		157,776		176,067		30,881		(14,915)		350,672
Operating (loss) income		(863)		97,705		(70,672)		18,547		14,915		59,632
Other income and expenses, net		—		—		14,915		—		(14,915)		—
Interest income		—		5		580		32		(580)		37
Interest expense		(5)		(26,355)		—		(96)		580		(25,876)
Loss on extinguishment of debt		—		(71)		—		—		—		(71)
(Loss) earnings before income taxes		(868)		71,284		(55,177)		18,483		—		33,722
(Benefit) provision for income taxes		(221)		17,608		(13,736)		5,096		—		8,747
(Loss) earnings before equity in net income of subsidiaries		(647)		53,676		(41,441)		13,387		—		24,975
Equity in earnings of subsidiaries		25,622		(28,054)		—		—		2,432		—
Net (loss) earnings	$	24,975	$	25,622	$	(41,441)	$	13,387	$	2,432	$	24,975
Comprehensive (loss) income	$	5,581	$	25,828	$	(41,441)	$	(6,213)	$	21,826	$	5,581

Tailored Brands, Inc.

Condensed Consolidating Statement of Earnings (Loss)

(in thousands)

	Tailored		The Men's		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Six Months Ended July 29, 2017
Net sales	$	—	$	876,795	$	741,740	$	270,383	$	(255,254)	$	1,633,664
Cost of sales		—		421,288		543,682		194,812		(255,254)		904,528
Gross margin		—		455,507		198,058		75,571		—		729,136
Operating expenses		1,682		290,172		271,555		54,856		(28,596)		589,669
Operating (loss) income		(1,682)		165,335		(73,497)		20,715		28,596		139,467
Other income and expenses, net		—		—		28,870		(274)		(28,596)		—
Interest income		352		2,991		3,581		155		(6,914)		165
Interest expense		—		(54,212)		(320)		(3,170)		6,914		(50,788)
Gain on extinguishment of debt, net		—		3,996		—		—		—		3,996
(Loss) earnings before income taxes		(1,330)		118,110		(41,366)		17,426		—		92,840
Provision (benefit) for income taxes		1,778		38,684		(13,957)		6,025		—		32,530
(Loss) earnings before equity in net income of subsidiaries		(3,108)		79,426		(27,409)		11,401		—		60,310
Equity in earnings of subsidiaries		63,418		(16,008)		—		—		(47,410)		—
Net earnings (loss)	$	60,310	$	63,418	$	(27,409)	$	11,401	$	(47,410)	$	60,310
Comprehensive (loss) income	$	72,212	$	61,464	$	(27,409)	$	25,257	$	(59,312)	$	72,212
Six Months Ended July 30, 2016
Net sales	$	—	$	922,083	$	834,376	$	209,586	$	(227,539)	$	1,738,506
Cost of sales		—		446,651		631,148		126,101		(227,539)		976,361
Gross margin		—		475,432		203,228		83,485		—		762,145
Operating expenses		1,580		306,263		332,980		59,296		(28,600)		671,519
Operating (loss) income		(1,580)		169,169		(129,752)		24,189		28,600		90,626
Other income and expenses, net		—		—		28,600		—		(28,600)		—
Interest income		2		10		876		40		(878)		50
Interest expense		(5)		(53,042)		—		(208)		878		(52,377)
Loss on extinguishment of debt, net		—		(71)		—		—		—		(71)
(Loss) earnings before income taxes		(1,583)		116,066		(100,276)		24,021		—		38,228
(Benefit) provision for income taxes		(424)		32,152		(26,781)		6,669		—		11,616
(Loss) earnings before equity in net income of subsidiaries		(1,159)		83,914		(73,495)		17,352		—		26,612
Equity in earnings (loss) of subsidiaries		27,771		(56,143)		—		—		28,372		—
Net earnings (loss)		26,612		27,771		(73,495)		17,352		28,372		26,612
Comprehensive income (loss)	$	23,887	$	28,217	$	(73,495)	$	14,181	$	31,097	$	23,887

Condensed Consolidating Statement of Cash Flows

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended July 29, 2017

(in thousands)

	Tailored		The Men's		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	18,750	$	288,017	$	17,196	$	(165,401)	$	(18,033)	$	140,529
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(11,384)		(19,310)		(3,279)		—		(33,973)
Acquisition of business, net of cash		—		—		—		(457)		—		(457)
Intercompany activities		—		(192,824)		—		—		192,824		—
Proceeds from sale of property and equipment		—		—		2,157		—		—		2,157
Net cash used in investing activities		—		(204,208)		(17,153)		(3,736)		192,824		(32,273)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on term loan		—		(8,129)		—		—		—		(8,129)
Proceeds from asset-based revolving credit facility		—		181,550		—		—		—		181,550
Payments on asset-based revolving credit facility		—		(181,550)		—		—		—		(181,550)
Repurchase and retirement of senior notes		—		(45,167)		—		—		—		(45,167)
Intercompany activities		—		(18,033)		—		192,824		(174,791)		—
Cash dividends paid		(18,033)		—		—		—		—		(18,033)
Proceeds from issuance of common stock		927		—		—		—		—		927
Tax payments related to vested deferred stock units		(1,644)		—		—		—		—		(1,644)
Net cash (used in) provided by financing activities		(18,750)		(71,329)		—		192,824		(174,791)		(72,046)
Effect of exchange rate changes		—		—		—		5,642		—		5,642
Increase in cash and cash equivalents		—		12,480		43		29,329		—		41,852
Cash and cash equivalents at beginning of period		—		1,002		1,881		68,006		—		70,889
Cash and cash equivalents at end of period	$	—	$	13,482	$	1,924	$	97,335	$	—	$	112,741

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended July 30, 2016

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net cash provided by operating activities	$	18,002	$	55,289	$	22,725	$	21,964	$	(17,676)	$	100,304
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(29,922)		(23,753)		(2,237)		—		(55,912)
Intercompany activities		—		37,327		—		—		(37,327)		—
Proceeds from sale of property and equipment		—		—		598		7		—		605
Net cash provided by (used in) investing activities		—		7,405		(23,155)		(2,230)		(37,327)		(55,307)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on term loan		—		(38,951)		—		—		—		(38,951)
Proceeds from asset-based revolving credit facility		—		302,500		—		3,049		—		305,549
Payments on asset-based revolving credit facility		—		(302,500)		—		(3,049)		—		(305,549)
Repurchase and retirement of senior notes		—		(5,546)		—		—		—		(5,546)
Intercompany activities		—		(17,676)		—		(37,327)		55,003		—
Cash dividends paid		(17,676)		—		—		—		—		(17,676)
Proceeds from issuance of common stock		932		—		—		—		—		932
Tax payments related to vested deferred stock units		(1,258)		—		—		—		—		(1,258)
Net cash used in financing activities		(18,002)		(62,173)		—		(37,327)		55,003		(62,499)
Effect of exchange rate changes		—		—		—		(1,048)		—		(1,048)
Increase (decrease) in cash and cash equivalents		—		521		(430)		(18,641)		—		(18,550)
Cash and cash equivalents at beginning of period		—		724		2,243		27,013		—		29,980
Cash and cash equivalents at end of period	$	—	$	1,245	$	1,813	$	8,372	$	—	$	11,430