SEGMENT INFORMATION

12 Months Ended

Feb. 01, 2015

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 15—SEGMENT INFORMATION

        HD Supply's operating segments are based on management structure and internal reporting. Each segment offers different products and services to the end customer, except for Corporate, which provides general corporate overhead support. The Company determines the reportable segments in accordance with the principles of segment reporting within ASC 280, Segment Reporting. For purposes of evaluation under these segment reporting principles, the Chief Operating Decision Maker for HD Supply assesses HD Supply's ongoing performance, based on the periodic review and evaluation of Net sales, Adjusted EBITDA, and certain other measures for each of the operating segments.

        HD Supply has four reportable segments, each of which is presented below:

• Facilities Maintenance—Facilities Maintenance distributes maintenance, repair and operations ("MRO") products, provides value-add services and fabricates custom products to multifamily, hospitality, healthcare and institutional facilities.

• Waterworks—Waterworks distributes complete lines of water and wastewater transmission products, serving contractors and municipalities in the water and wastewater industries for non-residential and residential uses.

• Power Solutions—Power Solutions distributes electrical transmission and distribution products, power plant MRO supplies and smart-grid products, and arranges materials management and procurement outsourcing for the power generation and distribution industries.

• Construction & Industrial—White Cap—Construction & Industrial—White Cap distributes specialized hardware, tools, engineered materials and safety products to non-residential and residential contractors.

        In addition to the reportable segments, our consolidated financial results include "Corporate & Other." Corporate & Other is comprised of the following operating segments: Interior Solutions, Home Improvement Solutions and HD Supply Canada. Interior Solutions offers turnkey supply and installation services for multiple interior finish options, including flooring, cabinets, countertops, and window coverings, along with comprehensive design center services for non-residential, residential and senior living projects. Home Improvement Solutions offers light remodeling and construction supplies, kitchen and bath cabinets, windows, plumbing materials, electrical equipment and other products, primarily to small remodeling contractors and trade professionals. HD Supply Canada is an industrial distributor that primarily focuses on servicing fasteners/industrial supplies markets operating across six Canadian provinces. Corporate & Other also includes costs related to our centralized support functions, which are comprised of finance, information technology, human resources, legal, supply chain and other support services, and removes inter-segment transactions.

        The following tables present Net sales, Adjusted EBITDA, and certain other measures for each of the reportable segments and total continuing operations for the periods indicated (amounts in millions):

	Fiscal Year 2014
	Net Sales		Adjusted EBITDA			Depreciation(1) & Software Amortization		Other Intangible Amortization		Total Assets(2)		Capital Expenditures(2)
Facilities Maintenance	$	2,510	$	491		$	50	$	57	$	2,390	$	32
Waterworks		2,427		198			11		3		1,640		15
Power Solutions		1,913		79			8		18		813		7
Construction & Industrial—White Cap		1,481		111			21		14		591		29
Corporate & Other		551		(25	)		23		7		626		36
Total continuing operations	$	8,882	$	854		$	113	$	99	$	6,060	$	119

	Fiscal Year 2013
	Net Sales		Adjusted EBITDA			Depreciation(1) & Software Amortization		Other Intangible Amortization		Total Assets(2)		Capital Expenditures(2)
Facilities Maintenance	$	2,331	$	434		$	45	$	81	$	2,433	$	42
Waterworks		2,227		173			10		4		1,585		12
Power Solutions		1,843		76			7		18		818		12
Construction & Industrial—White Cap		1,293		79			16		20		557		25
Corporate & Other		534		(28	)		25		6		931		40
Total continuing operations	$	8,228	$	734		$	103	$	129	$	6,324	$	131

	Fiscal Year 2012
	Net Sales		Adjusted EBITDA			Depreciation(1) & Software Amortization		Other Intangible Amortization		Total Assets(2)		Capital Expenditures(2)
Facilities Maintenance	$	2,182	$	389		$	39	$	79	$	2,463	$	35
Waterworks		2,028		137			10		96		1,562		12
Power Solutions		1,787		72			7		18		816		4
Construction & Industrial—White Cap		1,178		56			12		20		521		22
Corporate & Other		472		(30	)		21		7		1,972		42
Total continuing operations	$	7,647	$	624		$	89	$	220	$	7,334	$	115

(1)	Depreciation includes amounts recorded within Cost of sales in the Consolidated Statements of Operations.
(2)	Total Assets and capital expenditures include amounts attributable to discontinued operations for the periods prior to the dispositions.

Reconciliation to Consolidated Financial Statements

	Fiscal 2014			Fiscal 2013			Fiscal 2012
Total Adjusted EBITDA	$	854		$	734		$	624
Depreciation and amortization		212			232			309
Stock-based compensation		17			16			16
Management fees and expenses		—			2			5
Restructuring		7			12			—
Other		—			—			(1	)
Operating income		618			472			295
Interest expense		461			528			658
Loss on extinguishment & modification of debt		108			87			709
Other (income) expense, net		(3	)		20			—
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes		52			(163	)		(1,072	)
Provision (benefit) for income taxes		56			58			39
Income (loss) from continuing operations	$	(4	)	$	(221	)	$	(1,111	)

        Net sales for HD Supply outside the United States, primarily Canada, were $375 million, $326 million, and $248 million in fiscal 2014, fiscal 2013, and fiscal 2012, respectively. Long-lived assets of HD Supply outside the United States, primarily Canada, were $13 million and $19 million as of February 1, 2015 and February 2, 2014, respectively.