CONDENSED CONSOLIDATING INFORMATION (Tables)

12 Months Ended

Feb. 02, 2019

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Condensed Consolidating Balance Sheet

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

February 2, 2019

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	970	$	1,496	$	52,965	$	—	$	55,431
Accounts receivable, net		—		23,954		264,884		82,204		(297,969)		73,073
Inventories		—		149,923		461,153		219,350		—		830,426
Other current assets		—		30,699		37,969		7,314		(5,270)		70,712
Total current assets		—		205,546		765,502		361,833		(303,239)		1,029,642
Property and equipment, net		—		194,290		209,814		35,068		—		439,172
Rental product, net		—		81,809		3,426		14,535		—		99,770
Goodwill		—		6,160		52,128		21,203		—		79,491
Intangible assets, net		—		—		153,712		10,189		—		163,901
Investments in subsidiaries		160,057		1,234,005		—		—		(1,394,062)		—
Other assets		—		7,590		665		5,059		(4,800)		8,514
Total assets	$	160,057	$	1,729,400	$	1,185,247	$	447,887	$	(1,702,101)	$	1,820,490
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	142,701	$	201,799	$	69,485	$	112,963	$	(297,969)	$	228,979
Accrued expenses and other current liabilities		6,697		146,683		109,654		40,233		(5,270)		297,997
Current portion of long-term debt		—		11,619		—		—		—		11,619
Total current liabilities		149,398		360,101		179,139		153,196		(303,239)		538,595
Long-term debt, net		—		1,153,242		—		—		—		1,153,242
Deferred taxes, net and other liabilities		7,028		56,000		45,069		21,725		(4,800)		125,022
Shareholders'  equity		3,631		160,057		961,039		272,966		(1,394,062)		3,631
Total liabilities and shareholders'  equity	$	160,057	$	1,729,400	$	1,185,247	$	447,887	$	(1,702,101)	$	1,820,490

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

February 3, 2018

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	51,818	$	2,180	$	49,609	$	—	$	103,607
Accounts receivable, net		—		23,712		368,328		58,573		(370,830)		79,783
Inventories		—		207,504		445,126		199,301		—		851,931
Other current assets		3,666		26,951		38,217		9,418		—		78,252
Total current assets		3,666		309,985		853,851		316,901		(370,830)		1,113,573
Property and equipment, net		—		203,204		220,979		36,491		—		460,674
Rental product, net		—		103,664		3,658		16,408		—		123,730
Goodwill		—		6,160		67,010		47,122		—		120,292
Intangible assets, net		—		—		155,438		13,549		—		168,987
Investments in subsidiaries		128,458		1,424,647		—		—		(1,553,105)		—
Other assets		—		11,183		805		81,846		(81,135)		12,699
Total assets	$	132,124	$	2,058,843	$	1,301,741	$	512,317	$	(2,005,070)	$	1,999,955
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	110,326	$	281,838	$	57,756	$	66,016	$	(370,830)	$	145,106
Accrued expenses and other current liabilities		14,061		87,597		155,813		34,187		—		291,658
Current portion of long-term debt		—		7,000		—		—		—		7,000
Total current liabilities		124,387		376,435		213,569		100,203		(370,830)		443,764
Long-term debt, net		—		1,389,808		—		—		—		1,389,808
Deferred taxes, net and other liabilities		5,545		164,142		46,641		28,998		(81,135)		164,191
Shareholders' equity		2,192		128,458		1,041,531		383,116		(1,553,105)		2,192
Total liabilities and shareholders' equity	$	132,124	$	2,058,843	$	1,301,741	$	512,317	$	(2,005,070)	$	1,999,955

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
Year Ended February 2, 2019
Net sales	$	—	$	1,735,743	$	1,571,227	$	633,959	$	(701,027)	$	3,239,902
Cost of sales		—		886,137		1,208,420		468,905		(701,027)		1,862,435
Gross margin		—		849,606		362,807		165,054		—		1,377,467
Operating expenses		4,489		538,469		544,312		134,521		(56,263)		1,165,528
Operating (loss) income		(4,489)		311,137		(181,505)		30,533		56,263		211,939
Other income and expenses, net		—		—		55,582		681		(56,263)		—
Interest (expense) income, net		(3,950)		(85,011)		7,949		2,002		—		(79,010)
Loss on extinguishment of debt, net		—		(30,253)		—		—		—		(30,253)
(Loss) earnings before income taxes		(8,439)		195,873		(117,974)		33,216		—		102,676
(Benefit) provision for income taxes		(1,056)		35,334		(25,685)		10,843		—		19,436
(Loss) earnings before equity in net income of subsidiaries		(7,383)		160,539		(92,289)		22,373		—		83,240
Equity in earnings (loss) of subsidiaries		90,623		(69,916)		—		—		(20,707)		—
Net earnings (loss)	$	83,240	$	90,623	$	(92,289)	$	22,373	$	(20,707)	$	83,240
Comprehensive income (loss)	$	60,043	$	83,146	$	(92,323)	$	6,687	$	2,490	$	60,043
Year Ended February 3, 2018
Net sales	$	—	$	1,737,651	$	1,653,188	$	737,848	$	(824,341)	$	3,304,346
Cost of sales		—		897,429		1,255,046		567,446		(824,341)		1,895,580
Gross margin		—		840,222		398,142		170,402		—		1,408,766
Operating expenses		3,453		648,569		557,404		116,587		(146,663)		1,179,350
Operating (loss) income		(3,453)		191,653		(159,262)		53,815		146,663		229,416
Other income and expenses, net		—		—		145,002		1,661		(146,663)		—
Interest (expense) income, net		(442)		(105,009)		6,606		(1,062)		—		(99,907)
Gain on extinguishment of debt, net		—		5,445		—		—		—		5,445
(Loss) earnings before income taxes		(3,895)		92,089		(7,654)		54,414		—		134,954
(Benefit) provision for income taxes		(3,444)		54,744		(41,719)		28,670		—		38,251
(Loss) earnings before equity in net income of subsidiaries		(451)		37,345		34,065		25,744		—		96,703
Equity in earnings (loss) of subsidiaries		97,154		59,809		—		—		(156,963)		—
Net earnings (loss)	$	96,703	$	97,154	$	34,065	$	25,744	$	(156,963)	$	96,703
Comprehensive income (loss)	$	126,004	$	100,186	$	34,050	$	52,028	$	(186,264)	$	126,004

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
Year Ended January 28, 2017
Net sales	$	—	$	1,765,793	$	1,730,505	$	405,526	$	(523,121)	$	3,378,703
Cost of sales		—		897,564		1,308,576		254,216		(523,121)		1,937,235
Gross margin		—		868,229		421,929		151,310		—		1,441,468
Operating expenses		3,374		636,507		649,177		115,017		(95,433)		1,308,642
Operating (loss) income		(3,374)		231,722		(227,248)		36,293		95,433		132,826
Other income and expenses, net		—		—		89,433		6,000		(95,433)		—
Interest (expense) income, net		(23)		(104,636)		2,404		(727)		—		(102,982)
Gain on extinguishment of debt, net		—		1,737		—		—		—		1,737
(Loss) earnings before income taxes		(3,397)		128,823		(135,411)		41,566		—		31,581
(Benefit) provision for income taxes		(1,249)		25,063		(27,492)		10,303		—		6,625
(Loss) earnings before equity in net income of subsidiaries		(2,148)		103,760		(107,919)		31,263		—		24,956
Equity in earnings (loss) of subsidiaries		27,104		(76,656)		—		—		49,552		—
Net earnings (loss)	$	24,956	$	27,104	$	(107,919)	$	31,263	$	49,552	$	24,956
Comprehensive income (loss)	$	13,359	$	28,427	$	(107,895)	$	18,319	$	61,149	$	13,359

Condensed Consolidating Statement of Cash Flows

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

Year Ended February 2, 2019

(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	$	38,198	$	674,432	$	29,247	$	(382,259)	$	(36,946)	$	322,672
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(26,731)		(47,686)		(7,869)		—		(82,286)
Proceeds from divestiture of business		—		—		17,755		—		—		17,755
Intercompany activities		—		(321,970)		—		75,135		246,835		—
Net cash (used in) provided by investing activities		—		(348,701)		(29,931)		67,266		246,835		(64,531)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on original term loan		—		(993,420)		—		—		—		(993,420)
Proceeds from new term loan		—		895,500		—		—		—		895,500
Payments on new term loan		—		(9,000)		—		—		—		(9,000)
Proceeds from asset-based revolving credit facility		—		655,500		—		—		—		655,500
Payments on asset-based revolving credit facility		—		(607,000)		—		—		—		(607,000)
Repurchase and retirement of senior notes		—		(199,365)		—		—		—		(199,365)
Deferred financing costs		—		(6,713)		—		—		—		(6,713)
Intercompany activities		—		(112,081)		—		321,970		(209,889)		—
Cash dividends paid		(36,946)		—		—		—		—		(36,946)
Proceeds from issuance of common stock		6,649		—		—		—		—		6,649
Tax payments related to vested deferred stock units		(7,901)		—		—		—		—		(7,901)
Net cash (used in) provided by financing activities		(38,198)		(376,579)		—		321,970		(209,889)		(302,696)
Effect of exchange rate changes		—		—		—		(3,621)		—		(3,621)
(Decrease) increase in cash and cash equivalents		—		(50,848)		(684)		3,356		—		(48,176)
Cash and cash equivalents at beginning of period		—		51,818		2,180		49,609		—		103,607
Cash and cash equivalents at end of period	$	—	$	970	$	1,496	$	52,965	$	—	$	55,431

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

Year Ended February 3, 2018

(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	$	35,545	$	520,678	$	61,823	$	(231,517)	$	(35,761)	$	350,768
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(25,729)		(63,681)		(5,548)		—		(94,958)
Acquisition of business, net of cash		—		—		—		(457)		—		(457)
Intercompany activities		—		(285,500)		—		(75,135)		360,635		—
Proceeds from sale of property and equipment		—		3,323		2,157		—		—		5,480
Net cash used in investing activities		—		(307,906)		(61,524)		(81,140)		360,635		(89,935)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on original term loan		—		(53,379)		—		—		—		(53,379)
Proceeds from asset-based revolving credit facility		—		276,300		—		—		—		276,300
Payments on asset-based revolving credit facility		—		(276,300)		—		—		—		(276,300)
Repurchase and retirement of senior notes		—		(145,371)		—		—		—		(145,371)
Deferred financing costs		—		(2,580)		—		—		—		(2,580)
Intercompany activities		—		39,374		—		285,500		(324,874)		—
Cash dividends paid		(35,761)		—		—		—		—		(35,761)
Proceeds from issuance of common stock		1,903		—		—		—		—		1,903
Tax payments related to vested deferred stock units		(1,687)		—		—		—		—		(1,687)
Net cash (used in) provided by financing activities		(35,545)		(161,956)		—		285,500		(324,874)		(236,875)
Effect of exchange rate changes		—		—		—		8,760		—		8,760
Increase (decrease) in cash and cash equivalents		—		50,816		299		(18,397)		—		32,718
Cash and cash equivalents at beginning of period		—		1,002		1,881		68,006		—		70,889
Cash and cash equivalents at end of period	$	—	$	51,818	$	2,180	$	49,609	$	—	$	103,607

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

Year Ended January 28, 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	$	34,402	$	257,133	$	47,038	$	(60,705)	$	(35,240)	$	242,628
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(46,960)		(47,998)		(4,736)		—		(99,694)
Intercompany activities		—		(110,280)		—		—		110,280		—
Proceeds from sale of property and equipment		—		—		598		19		—		617
Net cash used in investing activities		—		(157,240)		(47,400)		(4,717)		110,280		(99,077)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on original term loan		—		(42,451)		—		—		—		(42,451)
Proceeds from asset-based revolving credit facility		—		606,500		—		3,037		—		609,537
Payments on asset-based revolving credit facility		—		(606,500)		—		(3,037)		—		(609,537)
Repurchase and retirement of senior notes		—		(21,924)		—		—		—		(21,924)
Intercompany activities		—		(35,240)		—		110,280		(75,040)		—
Cash dividends paid		(35,240)		—		—		—		—		(35,240)
Proceeds from issuance of common stock		2,189		—		—		—		—		2,189
Tax payments related to vested deferred stock units		(1,362)		—		—		—		—		(1,362)
Excess tax benefits from share-based plans		11		—		—		—		—		11
Net cash (used in) provided by financing activities		(34,402)		(99,615)		—		110,280		(75,040)		(98,777)
Effect of exchange rate changes		—		—		—		(3,865)		—		(3,865)
Increase (decrease) in cash and cash equivalents		—		278		(362)		40,993		—		40,909
Cash and cash equivalents at beginning of period		—		724		2,243		27,013		—		29,980
Cash and cash equivalents at end of period	$	—	$	1,002	$	1,881	$	68,006	$	—	$	70,889