GUARANTOR/NON-GUARANTOR SUBSIDIARY FINANCIAL INFORMATION (Tables)

6 Months Ended

Jul. 29, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

July 29, 2017



millions	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—		$	180	$	32		$	—		$	212
Restricted cash	230			—		—			—			230
Intercompany receivables	—			—		27,871			(27,871		)	—
Accounts receivable	—			350		20			—			370
Merchandise inventories	—			3,433		—			—			3,433
Prepaid expenses and other current assets	31			661		432			(806		)	318
Total current assets	261			4,624		28,355			(28,677		)	4,563
Total property and equipment, net	—			1,262		707			—			1,969
Goodwill and intangible assets	—			355		1,261			(98		)	1,518
Other assets	405			1,304		1,532			(2,940		)	301
Investment in subsidiaries	9,307			27,692		—			(36,999		)	—
TOTAL ASSETS	$	9,973		$	35,237	$	31,855		$	(68,714	)	$	8,351
Current liabilities
Short-term borrowings	$	—		$	689	$	—		$	(143	)	$	546
Current portion of long-term debt and capitalized lease obligations	—			1,052		—			—			1,052
Merchandise payables	—			672		(2		)	—			670
Intercompany payables	11,416			16,455		—			(27,871		)	—
Other current liabilities	37			2,108		1,158			(611		)	2,692
Total current liabilities	11,453			20,976		1,156			(28,625		)	4,960
Long-term debt and capitalized lease obligations	2,130			3,036		—			(2,761		)	2,405
Pension and postretirement benefits	—			1,727		4			—			1,731
Deferred gain on sale-leaseback	—			455		—			—			455
Sale-leaseback financing obligation	—			141		89			—			230
Long-term deferred tax liabilities	48			—		738			(143		)	643
Other long-term liabilities	—			1,211		560			(193		)	1,578
Total Liabilities	13,631			27,546		2,547			(31,722		)	12,002
EQUITY (DEFICIT)
Shareholder's equity (deficit)	(3,658		)	7,691		29,308			(36,992		)	(3,651		)
Total Equity (Deficit)	(3,658		)	7,691		29,308			(36,992		)	(3,651		)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	9,973		$	35,237	$	31,855		$	(68,714	)	$	8,351

Condensed Consolidating Balance Sheet

July 30, 2016



millions	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—		$	236	$	40	$	—		$	276
Intercompany receivables	—			—		27,413		(27,413		)	—
Accounts receivable	—			357		33		—			390
Merchandise inventories	—			4,684		—		—			4,684
Prepaid expenses and other current assets	114			597		255		(691		)	275
Total current assets	114			5,874		27,741		(28,104		)	5,625
Total property and equipment, net	—			1,698		767		—			2,465
Goodwill and intangible assets	—			364		1,909		(98		)	2,175
Other assets	—			265		1,785		(1,701		)	349
Investment in subsidiaries	10,209			26,879		—		(37,088		)	—
TOTAL ASSETS	$	10,323		$	35,080	$	32,202	$	(66,991	)	$	10,614
Current liabilities
Short-term borrowings	$	—		$	164	$	—	$	—		$	164
Current portion of long-term debt and capitalized lease obligations	—			549		1		—			550
Merchandise payables	—			1,345		—		—			1,345
Intercompany payables	12,236			15,177		—		(27,413		)	—
Other current liabilities	12			2,258		1,315		(691		)	2,894
Total current liabilities	12,248			19,493		1,316		(28,104		)	4,953
Long-term debt and capitalized lease obligations	706			3,631		1		(1,501		)	2,837
Pension and postretirement benefits	—			2,068		4		—			2,072
Deferred gain on sale-leaseback	—			686		—		—			686
Sale-leaseback financing obligation	—			164		—		—			164
Long-term deferred tax liabilities	58			—		901		(67		)	892
Other long-term liabilities	—			804		1,121		(222		)	1,703
Total Liabilities	13,012			26,846		3,343		(29,894		)	13,307
EQUITY (DEFICIT)
Shareholder's equity (deficit)	(2,689		)	8,234		28,859		(37,102		)	(2,698		)
Noncontrolling interest	—			—		—		5			5
Total Equity (Deficit)	(2,689		)	8,234		28,859		(37,097		)	(2,693		)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	10,323		$	35,080	$	32,202	$	(66,991	)	$	10,614

Condensed Consolidating Balance Sheet

January 28, 2017



millions	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—		$	260	$	26	$	—		$	286
Intercompany receivables	—			—		27,415		(27,415		)	—
Accounts receivable	—			441		25		—			466
Merchandise inventories	—			3,959		—		—			3,959
Prepaid expenses and other current assets	23			692		856		(1,286		)	285
Total current assets	23			5,352		28,322		(28,701		)	4,996
Total property and equipment, net	—			1,504		736		—			2,240
Goodwill and intangible assets	—			360		1,528		(98		)	1,790
Other assets	4			285		931		(884		)	336
Investment in subsidiaries	9,110			26,703		—		(35,813		)	—
TOTAL ASSETS	$	9,137		$	34,204	$	31,517	$	(65,496	)	$	9,362
Current liabilities
Short-term borrowings	$	—		$	108	$	—	$	(108	)	$	—
Current portion of long-term debt and capitalized lease obligations	—			1,189		—		(599		)	590
Merchandise payables	—			1,048		—		—			1,048
Intercompany payables	11,830			15,585		—		(27,415		)	—
Other current liabilities	17			2,479		1,219		(672		)	3,043
Total current liabilities	11,847			20,409		1,219		(28,794		)	4,681
Long-term debt and capitalized lease obligations	1,215			3,160		—		(802		)	3,573
Pension and postretirement benefits	—			1,746		4		—			1,750
Deferred gain on sale-leaseback	—			563		—		—			563
Sale-leaseback financing obligation	—			235		—		—			235
Long-term deferred tax liabilities	48			—		724		(29		)	743
Other long-term liabilities	—			808		1,038		(205		)	1,641
Total Liabilities	13,110			26,921		2,985		(29,830		)	13,186
EQUITY (DEFICIT)
Shareholder's equity (deficit)	(3,973		)	7,283		28,532		(35,666		)	(3,824		)
Noncontrolling interest	—			—		—		—			—
Total Equity (Deficit)	(3,973		)	7,283		28,532		(35,666		)	(3,824		)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	9,137		$	34,204	$	31,517	$	(65,496	)	$	9,362

Condensed Consolidating Statement of Operations

For the 13 Weeks Ended July 29, 2017



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Merchandise sales	$	—		$	3,490		$	—		$	8		$	3,498
Services and other	—			891			547			(571		)	867
Total revenues	—			4,381			547			(563		)	4,365
Cost of sales, buying and occupancy - merchandise sales	—			2,884			—			18			2,902
Cost of sales and occupancy - services and other	—			586			203			(297		)	492
Total cost of sales, buying and occupancy	—			3,470			203			(279		)	3,394
Selling and administrative	(33		)	1,476			210			(284		)	1,369
Depreciation and amortization	—			67			16			—			83
Impairment charges	—			5			—			—			5
Gain on sales of assets	6			(386		)	—			—			(380		)
Total costs and expenses	(27		)	4,632			429			(563		)	4,471
Operating income (loss)	27			(251		)	118			—			(106		)
Interest expense	(154		)	(237		)	(4		)	272			(123		)
Interest and investment income (loss)	28			64			168			(272		)	(12		)
Income (loss) before income taxes	(99		)	(424		)	282			—			(241		)
Income tax (expense) benefit	—			21			(31		)	—			(10		)
Equity (deficit) in earnings in subsidiaries	(152		)	177			—			(25		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS	$	(251	)	$	(226	)	$	251		$	(25	)	$	(251	)

Condensed Consolidating Statement of Operations

For the 13 Weeks Ended July 30, 2016



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Merchandise sales	$	—		$	4,643		$	—		$	5		$	4,648
Services and other	—			1,065			756			(806		)	1,015
Total revenues	—			5,708			756			(801		)	5,663
Cost of sales, buying and occupancy - merchandise sales	—			3,796			—			13			3,809
Cost of sales and occupancy - services and other	—			731			264			(401		)	594
Total cost of sales, buying and occupancy	—			4,527			264			(388		)	4,403
Selling and administrative	1			1,596			300			(413		)	1,484
Depreciation and amortization	—			74			18			—			92
Impairment charges	—			7			—			—			7
Gain on sales of assets	—			(152		)	—			98			(54		)
Total costs and expenses	1			6,052			582			(703		)	5,932
Operating income (loss)	(1		)	(344		)	174			(98		)	(269		)
Interest expense	(115		)	(159		)	14			161			(99		)
Interest and investment income (loss)	11			55			82			(161		)	(13		)
Other loss	—			—			(1		)	—			(1		)
Income (loss) before income taxes	(105		)	(448		)	269			(98		)	(382		)
Income tax (expense) benefit	—			34			(47		)	—			(13		)
Equity (deficit) in earnings in subsidiaries	(192		)	140			—			52			—
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS	$	(297	)	$	(274	)	$	222		$	(46	)	$	(395	)

Condensed Consolidating Statement of Operations

For the 26 Weeks Ended July 29, 2017



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Merchandise sales	$	—		$	6,914		$	—		$	13		$	6,927
Services and other	—			1,765			1,157			(1,183		)	1,739
Total revenues	—			8,679			1,157			(1,170		)	8,666
Cost of sales, buying and occupancy - merchandise sales	—			5,740			—			45			5,785
Cost of sales and occupancy - services and other	—			1,188			441			(649		)	980
Total cost of sales, buying and occupancy	—			6,928			441			(604		)	6,765
Selling and administrative	(32		)	2,807			427			(566		)	2,636
Depreciation and amortization	—			138			32			—			170
Impairment charges	—			20			—			—			20
Gain on sales of assets	(486		)	(635		)	—			—			(1,121		)
Total costs and expenses	(518		)	9,258			900			(1,170		)	8,470
Operating income (loss)	518			(579		)	257			—			196
Interest expense	(271		)	(458		)	(8		)	486			(251		)
Interest and investment income (loss)	38			103			331			(486		)	(14		)
Income (loss) before income taxes	285			(934		)	580			—			(69		)
Income tax (expense) benefit	—			150			(88		)	—			62
Equity (deficit) in earnings in subsidiaries	(292		)	347			—			(55		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS	$	(7	)	$	(437	)	$	492		$	(55	)	$	(7	)

Condensed Consolidating Statement of Operations

For the 26 Weeks Ended July 30, 2016



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Merchandise sales	$	—		$	9,042		$	—		$	8		$	9,050
Services and other	—			2,086			1,378			(1,457		)	2,007
Total revenues	—			11,128			1,378			(1,449		)	11,057
Cost of sales, buying and occupancy - merchandise sales	—			7,399			—			32			7,431
Cost of sales and occupancy - services and other	—			1,463			512			(786		)	1,189
Total cost of sales, buying and occupancy	—			8,862			512			(754		)	8,620
Selling and administrative	2			3,195			485			(695		)	2,987
Depreciation and amortization	—			151			36			—			187
Impairment charges	—			15			—			—			15
Gain on sales of assets	—			(211		)	(2		)	98			(115		)
Total costs and expenses	2			12,012			1,031			(1,351		)	11,694
Operating income (loss)	(2		)	(884		)	347			(98		)	(637		)
Interest expense	(189		)	(304		)	(6		)	315			(184		)
Interest and investment income (loss)	11			76			211			(315		)	(17		)
Income (loss) before income taxes	(180		)	(1,112		)	552			(98		)	(838		)
Income tax (expense) benefit	—			70			(98		)	—			(28		)
Equity (deficit) in earnings in subsidiaries	(588		)	286			—			302			—
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS	$	(768	)	$	(756	)	$	454		$	204		$	(866	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the 13 Weeks Ended July 29, 2017



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(251	)	$	(226	)	$	251	$	(25	)	$	(251	)
Other comprehensive income
Pension and postretirement adjustments, net of tax	—			127			—		—			127
Total other comprehensive income	—			127			—		—			127
Comprehensive income (loss) attributable to Holdings' shareholders	$	(251	)	$	(99	)	$	251	$	(25	)	$	(124	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the 13 Weeks Ended July 30, 2016



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(297	)	$	(274	)	$	222	$	(46	)	$	(395	)
Other comprehensive income
Pension and postretirement adjustments, net of tax	—			64			—		—			64
Unrealized net gain, net of tax	—			—			22		(22		)	—
Total other comprehensive income	—			64			22		(22		)	64
Comprehensive income (loss) attributable to Holdings' shareholders	$	(297	)	$	(210	)	$	244	$	(68	)	$	(331	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the 26 Weeks Ended July 29, 2017



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(7	)	$	(437	)	$	492	$	(55	)	$	(7	)
Other comprehensive income
Pension and postretirement adjustments, net of tax	—			177			—		—			177
Currency translation adjustments, net of tax	—			—			1		—			1
Unrealized net gain, net of tax	—			—			26		(26		)	—
Total other comprehensive income	—			177			27		(26		)	178
Comprehensive income (loss) attributable to Holdings' shareholders	$	(7	)	$	(260	)	$	519	$	(81	)	$	171

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the 26 Weeks Ended July 30, 2016



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(768	)	$	(756	)	$	454	$	204		$	(866	)
Other comprehensive income
Pension and postretirement adjustments, net of tax	—			128			—		—			128
Unrealized net gain, net of tax	—			—			63		(63		)	—
Total other comprehensive income	—			128			63		(63		)	128
Comprehensive income (loss) attributable to Holdings' shareholders	$	(768	)	$	(628	)	$	517	$	141		$	(738	)

Condensed Consolidating Statement of Cash Flows

For the 26 Weeks Ended July 29, 2017



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(11	)	$	(1,436	)	$	309		$	—		$	(1,138	)
Proceeds from sales of property and investments	—			569			—			—			569
Proceeds from Craftsman sale	572			—			—			—			572
Proceeds from sales of receivables	293			—			—			—			293
Purchases of property and equipment	—			(36		)	(5		)	—			(41		)
Net investing with Affiliates	(582		)	—			(298		)	880			—
Net cash provided by (used in) investing activities	283			533			(303		)	880			1,393
Proceeds from debt issuances	—			330			—			—			330
Repayments of long-term debt	(39		)	(678		)	—			—			(717		)
Increase in short-term borrowings, primarily 90 days or less	—			216			—			—			216
Proceeds from sale-leaseback financing	—			89			—			—			89
Debt issuance costs	(3		)	(14		)	—			—			(17		)
Net borrowing with Affiliates	—			880			—			(880		)	—
Net cash provided by (used in) financing activities	(42		)	823			—			(880		)	(99		)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	230			(80		)	6			—			156
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH BEGINNING OF YEAR	—			260			26			—			286
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH END OF PERIOD	$	230		$	180		$	32		$	—		$	442

Condensed Consolidating Statement of Cash Flows

For the 26 Weeks Ended July 30, 2016



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	184		$	(1,066	)	$	433		$	(191	)	$	(640	)
Proceeds from sales of property and investments	—			101			113			—			214
Purchases of property and equipment	—			(70		)	(5		)	—			(75		)
Net investing with Affiliates	(184		)	—			(347		)	531			—
Net cash provided by (used in) investing activities	(184		)	31			(239		)	531			139
Proceeds from debt issuances	—			1,228			—			—			1,228
Repayments of long-term debt	—			(34		)	(1		)	—			(35		)
Decrease in short-term borrowings, primarily 90 days or less	—			(633		)	—			—			(633		)
Debt issuance costs	—			(21		)	—			—			(21		)
Intercompany dividend	—			—			(191		)	191			—
Net borrowing with Affiliates	—			531			—			(531		)	—
Net cash provided by (used in) financing activities	—			1,071			(192		)	(340		)	539
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			36			2			—			38
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH BEGINNING OF YEAR	—			200			38			—			238
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH END OF PERIOD	$	—		$	236		$	40		$	—		$	276