CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

12 Months Ended

Feb. 01, 2020

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Condensed Consolidating Balance Sheet

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

February 1, 2020

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	961	$	1,495	$	11,964	$	—	$	14,420
Accounts receivable, net		—		28,603		345,683		49,043		(383,356)		39,973
Inventories		—		136,228		420,339		140,090		—		696,657
Other current assets		10,379		11,145		56,192		16,349		(10,000)		84,065
Total current assets		10,379		176,937		823,709		217,446		(393,356)		835,115
Property and equipment, net		—		173,271		199,396		23,145		—		395,812
Operating lease right-of-use assets		—		458,209		368,748		53,334		—		880,291
Rental product, net		—		81,370		2,370		9,157		—		92,897
Goodwill		—		6,160		52,128		20,983		—		79,271
Intangible assets, net		—		—		116,843		—		—		116,843
Investments in subsidiaries		86,771		1,180,304		—		—		(1,267,075)		—
Other assets		—		10,269		8,367		3,694		(3,600)		18,730
Total assets	$	97,150	$	2,086,520	$	1,571,561	$	327,759	$	(1,664,031)	$	2,418,959
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	189,526	$	236,592	$	68,845	$	72,290	$	(383,356)	$	183,897
Accrued expenses and other current liabilities		2,207		148,929		91,349		17,041		(10,000)		249,526
Current portion of operating lease liabilities		—		99,195		75,229		11,880		—		186,304
Current portion of long-term debt		—		9,000		—		—		—		9,000
Total current liabilities		191,733		493,716		235,423		101,211		(393,356)		628,727
Long-term debt, net		—		1,094,398		—		—		—		1,094,398
Operating lease liabilities		—		381,150		303,040		42,137		—		726,327
Deferred taxes, net and other liabilities		3,723		30,485		23,022		14,183		(3,600)		67,813
Shareholders' (deficit) equity		(98,306)		86,771		1,010,076		170,228		(1,267,075)		(98,306)
Total liabilities and shareholders' equity	$	97,150	$	2,086,520	$	1,571,561	$	327,759	$	(1,664,031)	$	2,418,959

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	$	1,434	$	30,267	$	—	$	32,671
Accounts receivable, net		—		23,954		255,091		53,610		(297,969)		34,686
Inventories		—		149,923		429,952		144,211		—		724,086
Other current assets		—		30,699		37,621		3,773		(5,270)		66,823
Current assets - discontinued operations		—		—		41,404		129,972		—		171,376
Total current assets		—		205,546		765,502		361,833		(303,239)		1,029,642
Property and equipment, net		—		194,290		207,934		22,092		—		424,316
Rental product, net		—		81,809		3,426		14,535		—		99,770
Goodwill		—		6,160		52,128		21,203		—		79,491
Intangible assets, net		—		—		153,711		—		—		153,711
Investments in subsidiaries		160,057		1,234,005		—		—		(1,394,062)		—
Other assets		—		7,590		640		5,059		(4,800)		8,489
Non-current assets - discontinued operations		—		—		1,906		23,165		—		25,071
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	$	67,044	$	91,200	$	(297,969)	$	204,775
Accrued expenses and other current liabilities		6,697		146,683		105,022		29,044		(5,270)		282,176
Current portion of long-term debt		—		11,619		—		—		—		11,619
Current liabilities - discontinued operations		—		—		7,073		32,952		—		40,025
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		43,495		17,822		(4,800)		119,545
Non-current liabilities - discontinued operations		—		—		1,574		3,903		—		5,477
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

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 1, 2020
Net sales	$	—	$	1,650,102	$	1,586,697	$	719,517	$	(1,075,055)	$	2,881,261
Cost of sales		—		916,900		1,268,680		602,124		(1,075,055)		1,712,649
Gross margin		—		733,202		318,017		117,393		—		1,168,612
Operating expenses		3,071		652,665		527,887		86,926		(199,775)		1,070,774
Operating (loss) income		(3,071)		80,537		(209,870)		30,467		199,775		97,838
Other income and expenses, net		—		—		198,981		794		(199,775)		—
Interest (expense) income, net		(4,132)		(70,779)		4,851		(689)		—		(70,749)
Loss on extinguishment of debt, net		—		(77)		—		—		—		(77)
(Loss) earnings before income taxes		(7,203)		9,681		(6,038)		30,572		—		27,012
(Benefit) provision for income taxes		(2,847)		(7,370)		7,516		4,346		—		1,645
(Loss) earnings before equity in net income of subsidiaries		(4,356)		17,051		(13,554)		26,226		—		25,367
Equity in (loss) earnings of subsidiaries		(77,920)		(65,539)		—		—		143,459		—
Net (loss) earnings from continuing operations		(82,276)		(48,488)		(13,554)		26,226		143,459		25,367
Net (loss) earnings from discontinued operations, net of tax		—		(29,432)		2,013		(80,224)		—		(107,643)
Net (loss) earnings	$	(82,276)	$	(77,920)	$	(11,541)	$	(53,998)	$	143,459	$	(82,276)
Comprehensive (loss) income	$	(82,811)	$	(99,678)	$	(11,541)	$	(59,660)	$	170,879	$	(82,811)
Year Ended February 2, 2019
Net sales	$	—	$	1,735,743	$	1,519,548	$	450,247	$	(701,027)	$	3,004,511
Cost of sales		—		886,137		1,172,665		336,128		(701,027)		1,693,903
Gross margin		—		849,606		346,883		114,119		—		1,310,608
Operating expenses		4,489		538,469		531,206		67,145		(56,263)		1,085,046
Operating (loss) income		(4,489)		311,137		(184,323)		46,974		56,263		225,562
Other income and expenses, net		—		—		55,582		681		(56,263)		—
Interest (expense) income, net		(3,950)		(85,011)		7,949		2,005		—		(79,007)
Loss on extinguishment of debt, net		—		(30,253)		—		—		—		(30,253)
(Loss) earnings before income taxes		(8,439)		195,873		(120,792)		49,660		—		116,302
(Benefit) provision for income taxes		(1,056)		35,334		(25,295)		8,723		—		17,706
(Loss) earnings before equity in net income of subsidiaries		(7,383)		160,539		(95,497)		40,937		—		98,596
Equity in earnings (loss) of subsidiaries		90,623		(69,916)		—		—		(20,707)		—
Net earnings (loss) from continuing operations		83,240		90,623		(95,497)		40,937		(20,707)		98,596
Net earnings (loss) from discontinued operations, net of tax		—		—		3,208		(18,564)		—		(15,356)
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

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 3, 2018
Net sales	$	—	$	1,737,651	$	1,596,153	$	543,558	$	(824,341)	$	3,053,021
Cost of sales		—		897,429		1,213,089		425,416		(824,341)		1,711,593
Gross margin		—		840,222		383,064		118,142		—		1,341,428
Operating expenses		3,453		648,569		546,290		73,683		(146,663)		1,125,332
Operating (loss) income		(3,453)		191,653		(163,226)		44,459		146,663		216,096
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		(11,618)		45,058		—		121,634
(Benefit) provision for income taxes		(3,444)		54,744		(42,247)		25,564		—		34,617
(Loss) earnings before equity in net income of subsidiaries		(451)		37,345		30,629		19,494		—		87,017
Equity in earnings of subsidiaries		97,154		59,809		—		—		(156,963)		—
Net earnings from continuing operations		96,703		97,154		30,629		19,494		(156,963)		87,017
Net earnings from discontinued operations, net of tax		—		—		3,436		6,250		—		9,686
Net earnings	$	96,703	$	97,154	$	34,065	$	25,744	$	(156,963)	$	96,703
Comprehensive income	$	126,004	$	100,186	$	34,050	$	52,028	$	(186,264)	$	126,004

Condensed Consolidating Statement of Cash Flows

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

Year Ended February 1, 2020

(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	$	37,726	$	463,543	$	50,116	$	(400,173)	$	(51,571)	$	99,641
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(28,542)		(50,117)		(9,843)		—		(88,502)
Proceeds from divestiture of business, net		—		—		—		45,034		—		45,034
Proceeds from sales of property and equipment		—		311		—		—		—		311
Intercompany activities		—		(359,023)		—		(40,953)		399,976		—
Net cash (used in) provided by investing activities		—		(387,254)		(50,117)		(5,762)		399,976		(43,157)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on new term loan		—		(9,370)		—		—		—		(9,370)
Proceeds from asset-based revolving credit facility		—		1,333,000		—		—		—		1,333,000
Payments on asset-based revolving credit facility		—		(1,331,500)		—		—		—		(1,331,500)
Repurchase and retirement of senior notes		—		(54,425)		—		—		—		(54,425)
Intercompany activities		—		(14,003)		—		362,408		(348,405)		—
Cash dividends paid		(28,071)		—		—		—		—		(28,071)
Proceeds from issuance of common stock		1,561		—		—		—		—		1,561
Tax payments related to vested deferred stock units		(1,216)		—		—		—		—		(1,216)
Repurchases of common stock		(10,000)		—		—		—		—		(10,000)
Net cash (used in) provided by financing activities		(37,726)		(76,298)		—		362,408		(348,405)		(100,021)
Effect of exchange rate changes		—		—		—		2,526		—		2,526
Increase (decrease) in cash and cash equivalents		—		(9)		(1)		(41,001)		—		(41,011)
Cash and cash equivalents at beginning of period		—		970		1,496		52,965		—		55,431
Cash and cash equivalents at end of period	$	—	$	961	$	1,495	$	11,964	$	—	$	14,420

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, net		—		—		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