GUARANTOR SUBSIDIARIES (Tables)

12 Months Ended

Feb. 01, 2015

GUARANTOR SUBSIDIARIES

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

	Fiscal Year 2014
	Debt Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net Sales	$	—		$	8,521		$	363		$	(2	)	$	8,882		$	—
Cost of sales		—			6,058			267			(1	)		6,324			—
Gross Profit		—			2,463			96			(1	)		2,558			—
Operating expenses:
Selling, general and administrative		61			1,596			70			(1	)		1,726			—
Depreciation and amortization		17			188			2			—			207			—
Restructuring		2			5			—			—			7			—
Total operating expenses		80			1,789			72			(1	)		1,940			—
Operating Income (Loss)		(80	)		674			24			—			618			—
Interest expense		464			242			1			(246	)		461			—
Interest (income)		(242	)		(4	)		—			246			—			—
Net (earnings) loss of equity affiliates		(410	)		—			—			410			—			(3	)
Loss on extinguishment & modification of debt		108			—			—			—			108			—
Other income (expense), net		(3	)		—			—			—			(3	)		—
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes		3			436			23			(410	)		52			3
Provision (benefit) for income taxes		8			42			6			—			56			—
Income (Loss) from Continuing Operations		(5	)		394			17			(410	)		(4	)		3
Income (loss) from discontinued operations, net of tax		8			10			(11	)		—			7			—
Net Income (Loss)	$	3		$	404		$	6		$	(410	)	$	3		$	3
Other comprehensive income—foreign currency translation adjustment		(13	)		—			(13	)		13			(13	)		(13	)
Total Comprehensive Income (Loss)	$	(10	)	$	404		$	(7	)	$	(397	)	$	(10	)	$	(10	)

	Fiscal Year 2013
	Debt Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net Sales	$	—		$	7,833		$	397		$	(2	)	$	8,228		$	—
Cost of sales		—			5,573			298			(1	)		5,870			—
Gross Profit		—			2,260			99			(1	)		2,358			—
Operating expenses:
Selling, general and administrative		63			1,515			72			(1	)		1,649			—
Depreciation and amortization		16			211			1			—			228			—
Restructuring		3			6			—			—			9			—
Total operating expenses		82			1,732			73			(1	)		1,886			—
Operating Income (Loss)		(82	)		528			26			—			472			—
Interest expense		530			293			1			(296	)		528			—
Interest (income)		(293	)		(3	)		—			296			—			—
Net (earnings) loss of equity affiliates		(331	)		—			—			331			—			218
Loss on extinguishment & modification of debt		87			—			—			—			87
Other income (expense), net		20			—			—			—			20			—
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes		(95	)		238			25			(331	)		(163	)		(218	)
Provision (benefit) for income taxes		119			(67	)		6			—			58			—
Income (Loss) from Continuing Operations		(214	)		305			19			(331	)		(221	)		(218	)
Income (loss) from discontinued operations, net of tax		(4	)		10			(3	)		—			3			—
Net Income (Loss)	$	(218	)	$	315		$	16		$	(331	)	$	(218	)	$	(218	)
Other comprehensive income—foreign currency translation adjustment		(13	)		—			(13	)		13			(13	)		(13	)
Total Comprehensive Income (Loss)	$	(231	)	$	315		$	3		$	(318	)	$	(231	)	$	(231	)

	Fiscal Year 2012
	Debt Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net Sales	$	—		$	7,312		$	336		$	(1	)	$	7,647		$	—
Cost of sales		—			5,249			246			—			5,495			—
Gross Profit		—			2,063			90			(1	)		2,152			—
Operating expenses:
Selling, general and administrative		65			1,417			70			(1	)		1,551			—
Depreciation and amortization		13			291			2			—			306			—
Total operating expenses		78			1,708			72			(1	)		1,857			—
Operating Income (Loss)		(78	)		355			18			—			295			—
Interest expense		715			301			1			(359	)		658			—
Interest (income)		(302	)		(3	)		(54	)		359			—			—
Net (earnings) loss of equity affiliates		14			—			—			(14	)		—			1,179
Loss on extinguishment of debt		709			—			—			—			709			—
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes		(1,214	)		57			71			14			(1,072	)		(1,179	)
Provision (benefit) for income taxes		13			—			26			—			39			—
Income (Loss) from Continuing Operations		(1,227	)		57			45			14			(1,111	)		(1,179	)
Income (loss) from discontinued operations, net of tax		48			(114	)		(2	)		—			(68	)		—
Net Income (Loss)	$	(1,179	)	$	(57	)	$	43		$	14		$	(1,179	)	$	(1,179	)
Other comprehensive income—foreign currency translation adjustment		—			—			—			—			—			—
Total Comprehensive Income (Loss)	$	(1,179	)	$	(57	)	$	43		$	14		$	(1,179	)	$	(1,179	)

Condensed Consolidating Balance Sheets

	As of February 1, 2015
				Subsidiary Guarantors		Non-Guarantor Subsidiaries
	Debt Issuer							Eliminations			Total HDS			Holdings
ASSETS
Current assets:
Cash and cash equivalents	$	28		$	25	$	32	$	—		$	85		$	—
Receivables, net		1			1,040		47		—			1,088			—
Inventories		—			1,029		40		—			1,069			—
Deferred tax asset		—			66		2		(59	)		9			—
Other current assets		12			33		2		—			47			—
Total current assets		41			2,193		123		(59	)		2,298			—
Property and equipment, net		55			314		3		—			372			—
Goodwill		—			3,067		4		—			3,071			—
Intangible assets, net		—			198		2		—			200			—
Deferred tax asset		8			—		4		(8	)		4			—
Investment in subsidiaries		3,216			—		—		(3,216	)		—			(760	)
Intercompany notes receivable		2,191			611		—		(2,802	)		—			—
Other assets		109			6		—		—			115			—
Total assets	$	5,620		$	6,389	$	136	$	(6,085	)	$	6,060		$	(760	)
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	14		$	648	$	26	$	—		$	688		$	—
Accrued compensation and benefits		50			106		5		—			161			—
Current installments of long-term debt		34			—		—		—			34			—
Deferred tax liabilities		59			—		—		(59	)		—			—
Other current liabilities		124			118		10		—			252			—
Total current liabilities		281			872		41		(59	)		1,135			—
Long-term debt, excluding current installments		5,223			—		—		—			5,223			—
Deferred tax liabilities		—			174		—		(8	)		166			—
Intercompany notes payable		611			2,191		—		(2,802	)		—			—
Other liabilities		265			26		5		—			296			—
Total liabilities		6,380			3,263		46		(2,869	)		6,820			—
Stockholder's equity (deficit)		(760	)		3,126		90		(3,216	)		(760	)		(760	)
Total liabilities and stockholder's equity (deficit)	$	5,620		$	6,389	$	136	$	(6,085	)	$	6,060		$	(760	)

	As of February 2, 2014
	Debt Issuer			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total HDS			Holdings
ASSETS
Current assets:
Cash and cash equivalents	$	53		$	17	$	41	$	—		$	111		$	4
Receivables, net		2			984		60		—			1,046			—
Inventories		—			1,024		48		—			1,072			—
Deferred tax asset		—			58		1		(52	)		7			—
Other current assets		15			26		22		—			63			—
Total current assets		70			2,109		172		(52	)		2,299			4
Property and equipment, net		60			341		4		—			405			—
Goodwill		—			3,132		5		—			3,137			—
Intangible assets, net		—			335		3		—			338			—
Deferred tax asset		40			—		5		(40	)		5			—
Investment in subsidiaries		3,452			—		—		(3,452	)		—			(768	)
Intercompany notes receivable		2,192			605		—		(2,797	)		—			—
Other assets		128			6		2		—			136			—
Total assets	$	5,942		$	6,528	$	191	$	(6,341	)	$	6,320		$	(764	)
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	11		$	618	$	35	$	—		$	664		$	—
Accrued compensation and benefits		45			98		6		—			149			—
Current installments of long-term debt		10			—		—		—			10			—
Deferred tax liabilities		50			—		—		(50	)		—			—
Other current liabilities		148			103		19		—			270			—
Total current liabilities		264			819		60		(50	)		1,093			—
Long-term debt, excluding current installments		5,534			—		—		—			5,534			—
Deferred tax liabilities		—			156		—		(42	)		114			—
Intercompany notes payable		605			2,192		—		(2,797	)		—			—
Other liabilities		307			34		6		—			347			—
Total liabilities		6,710			3,201		66		(2,889	)		7,088			—
Stockholder's equity (deficit)		(768	)		3,327		125		(3,452	)		(768	)		(764	)
Total liabilities and stockholder's equity (deficit)	$	5,942		$	6,528	$	191	$	(6,341	)	$	6,320		$	(764	)

Condensed Consolidating Cash Flow Statements

	Fiscal 2014
	Debt Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net cash flows from operating activities	$	191		$	81		$	23		$	—		$	295		$	—
Cash flows from investing activities
Capital expenditures		(17	)		(102	)		—			—			(119	)		—
Proceeds from sale of property and equipment		1			4			—			—			5			—
Proceeds from sale of a business		198			—			—			—			198			—
(Investments in) return of capital of equity affiliates		27			—			—			(27	)		—			—
Proceeds from (payments of) intercompany notes		—			25			—			(25	)		—			—
Net cash flows from investing activities	$	209		$	(73	)	$	—		$	(52	)	$	84		$	—
Cash flows from financing activities
Proceeds from stock options exercised		—			—			—			—			—			48
Purchase of treasury shares		—			—			—			—			—			(52	)
Equity contribution (return of capital)		—			—			(27	)		27			—			—
Borrowings (repayments) of intercompany notes		(25	)		—			—			25			—			—
Borrowings of long-term debt		1,270			—			—			—			1,270			—
Repayments of long-term debt		(1,385	)		—			—			—			(1,385	)		—
Borrowings on long-term revolver		878			—			—			—			878			—
Repayments of long-term revolver		(1,142	)		—			—			—			(1,142	)		—
Debt issuance and modification fees		(21	)		—			—			—			(21	)		—
Net cash flows from financing activities	$	(425	)	$	—		$	(27	)	$	52		$	(400	)	$	(4	)
Effect of exchange rates on cash		—			—			(5	)		—			(5	)		—
Net increase (decrease) in cash & cash equivalents	$	(25	)	$	8		$	(9	)	$	—		$	(26	)	$	(4	)
Cash and cash equivalents at beginning of period		53			17			41			—			111			4
Cash and cash equivalents at end of period	$	28		$	25		$	32		$	—		$	85		$	—

	Fiscal 2013
	Debt Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net cash flows from operating activities	$	(452	)	$	72		$	13		$	—		$	(367	)	$	—
Cash flows from investing activities
Capital expenditures		(20	)		(109	)		(2	)		—			(131	)		—
Proceeds from sale of property and equipment		—			8			—			—			8			—
Proceeds from sale of a business		4			—			—			—			4			—
Settlement of acquisition of a business		—			3			—			—			3			—
Proceeds from sale of investments		936			—			—			—			936			—
(Investments in) return of capital of equity affiliates		2			—			—			(2	)		—			(1,039	)
Proceeds from (payments of) intercompany notes		—			30			—			(30	)		—			—
Net cash flows from investing activities	$	922		$	(68	)	$	(2	)	$	(32	)	$	820		$	(1,039	)
Cash flows from financing activities
Proceeds from sale of common stock in initial public offering, net of transaction fees		—			—			—			—			—			1,039
Proceeds from stock options exercised		—			—			—			—			—			4
Equity contribution (return of capital)		1,039			(2	)		—			2			1,039			—
Borrowings (repayments) of intercompany notes		(30	)		—			—			30			—			—
Borrowings of long-term debt		79			—			—			—			79			—
Repayments of long-term debt		(1,624	)		—			—			—			(1,624	)		—
Borrowings on long-term revolver		858			—			—			—			858			—
Repayments of long-term revolver		(798	)		—			—			—			(798	)		—
Debt issuance and modification fees		(34	)		—			—			—			(34	)		—
Other financing activities		2			—			—			—			2			—
Net cash flows from financing activities	$	(508	)	$	(2	)	$	—		$	32		$	(478	)	$	1,043
Effect of exchange rates on cash		—			—			(5	)		—			(5	)		—
Net increase (decrease) in cash & cash equivalents	$	(38	)	$	2		$	6		$	—		$	(30	)	$	4
Cash and cash equivalents at beginning of period		91			15			35			—			141			—
Cash and cash equivalents at end of period	$	53		$	17		$	41		$	—		$	111		$	4

	Fiscal 2012
	Debt Issuer			Subsidiaries Guarantor			Non-Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net cash flows from operating activities	$	(813	)	$	110		$	73		$	(51	)	$	(681	)	$	—
Cash flows from investing activities
Capital expenditures		(26	)		(87	)		(2	)		—			(115	)		—
Proceeds from sale of property and equipment		—			17			—			—			17			—
Payment for a business acquired		—			(248	)		—			—			(248	)		—
Proceeds from sale of a business		480			—			1			—			481			—
Purchase of other investments		(1,921	)		—			—			—			(1,921	)		—
Proceeds from sale of investments		985			—			—			—			985			—
Purchase of debt investments		—			—			(1	)		1			—			—
Proceeds from (payments of) intercompany notes		—			6			—			(6	)		—			—
Investments (return of capital) in equity affiliates		(169	)		—			—			169			—			—
Other investing activities		—			1			—			—			1			—
Net cash flows from investing activities	$	(651	)	$	(311	)	$	(2	)	$	164		$	(800	)	$	—
Cash flows from financing activities
Dividend payment		—			—			(51	)		51			—			—
Equity contribution (return of capital)		—			204			(35	)		(169	)		—			—
Borrowings (repayments) of intercompany notes		(6	)		—			—			6			—			—
Borrowings of long-term debt		6,365			—			—			—			6,365			—
Repayments of long-term debt		(5,023	)		—			—			(1	)		(5,024	)		—
Borrowings on long-term revolver		1,291			—			10			—			1,301			—
Repayments of long-term revolver		(991	)		—			(10	)		—			(1,001	)		—
Debt issuance and modification fees		(132	)		—			—			—			(132	)		—
Other financing activities		2			—			—			—			2			—
Net cash flows from financing activities	$	1,506		$	204		$	(86	)	$	(113	)	$	1,511		$	—
Net increase (decrease) in cash & cash equivalents	$	42		$	3		$	(15	)	$	—		$	30		$	—
Cash and cash equivalents at beginning of period		49			12			50			—			111			—
Cash and cash equivalents at end of period	$	91		$	15		$	35		$	—		$	141		$	—