DISCONTINUED OPERATIONS

12 Months Ended

Jan. 31, 2016

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 3—DISCONTINUED OPERATIONS

        In October 2015, the Company completed the sale of its Power Solutions business. The Company received cash proceeds of approximately $809 million, net of $16 million of transaction costs. The Company realized approximately $20 million in cumulative currency translation losses related to the Canadian operations of the Power Solutions business unit. As a result of the sale, the Company recorded a $186 million pre-tax gain.

        In January 2015, the Company completed the sale of substantially all of the assets of its Hardware Solutions business. The Company received cash proceeds of approximately $198 million, net of $2 million of transaction costs. As a result of the sale, the Company recorded an $8 million pre-tax gain in fiscal 2014.

        In January 2014, the Company approved the disposal of Litemor, a specialty lighting distributor within the Company's HD Supply Canada business. During fiscal 2014, the Company finalized the disposal process of Litemor through liquidation and branch sales, resulting in a pre-tax loss on disposal of $15 million, which includes cash and non-cash charges.

Summary Financial Information

        In accordance with ASC 205-20, "Discontinued Operations" and ASU 2014-08, "Reporting discontinued operations and disclosure of disposals of components of an entity," the results of Power Solutions, Hardware Solutions, and Litemor operations and the gains/losses on sales of the businesses are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations and gain/loss on the disposition of businesses, net of tax, as one line item on the Consolidated Statements of Operations and Comprehensive Income (Loss). All Consolidated Statements of Operations and Comprehensive Income (Loss) presented have been revised to reflect this presentation.

        The following table provides additional detail related to the results of operations of the discontinued operations (amounts in millions):

	Fiscal Year Ended
	January 31, 2016			February 1, 2015			February 2, 2014
Net sales	$	1,391		$	2,198		$	2,182
Cost of sales		1,185			1,783			1,772
Gross Profit		206			415			410
Operating expenses:
Selling, general and administrative		154			303			317
Depreciation and amortization		18			41			38
Restructuring		—			1			3
Total operating expenses		172			345			358
Operating Income		34			70			52
(Gain) loss on disposal of discontinued operations		(186	)		7			—
Other (income) expense, net		1			(3	)		—
Income (loss) before provision for income taxes		219			66			52
Provision (benefit) for income taxes		73			21			18
Income (loss) from discontinued operations, net of tax	$	146		$	45		$	34

        At January 31, 2016 and February 1, 2015, the carrying amounts of major classes of assets and liabilities of discontinued operations in the Consolidated Balance Sheets were as follows (amounts in millions):

	January 31, 2016		February 1, 2015
Current assets:
Receivables, less allowance for doubtful accounts of $0 and $1	$	—	$	221
Inventories		—		284
Other current assets		—		4
Total current assets		—		509
Goodwill		—		202
Intangible assets, net		—		55
Other non-current assets		—		38
Total assets of discontinued operations	$	—	$	804
Current Liabilities:
Accounts payable	$	—		178
Accrued compensation and benefits		—		18
Other current liabilities		—		21
Total liabilities of discontinued operations	$	—	$	217

        The following table provides additional detail related to the net cash provided by (used in) operating and investing activities of the discontinued operations (amounts in millions):

	Fiscal Year Ended
	January 31, 2016			February 1, 2015			February 2, 2014
Net cash flows from operating activities	$	2		$	89		$	55
Cash flows from investing activities:
Capital expenditures		(2	)		(19	)		(24	)
Proceeds from sale of a business		809			198			4
Net cash flows provided by (used in) investing activities	$	807		$	179		$	(20	)