DISCONTINUED OPERATIONS

12 Months Ended

Jan. 29, 2017

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 2—DISCONTINUED OPERATIONS

        In May 2016, the Company completed the sale of its Interior Solutions business. Including the final working capital settlement in September 2016, the Company received cash proceeds of approximately $26 million, net of $2 million of transaction costs. As a result of the sale, the Company recorded a $10 million pre-tax loss.

        In October 2015, the Company completed the sale of its Power Solutions business. Including the final working capital settlement in May 2016, the Company received cash proceeds of approximately $812 million, net of $16 million of transaction costs. As a result of the sale, the Company recorded a $189 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 initiated the disposal of Litemor, a specialty lighting distributor within the Company's HD Supply Canada business. During fiscal 2014, the Company completed the disposal 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 Interior Solutions, 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 29, 2017			January 31, 2016			February 1, 2015
Net sales	$	85		$	1,656		$	2,485
Cost of sales		64			1,383			2,002
Gross Profit		21			273			483
Operating expenses:
Selling, general and administrative		24			218			366
Depreciation and amortization		1			21			44
Restructuring		—			—			1
Total operating expenses		25			239			411
Operating Income (Loss)		(4	)		34			72
(Gain) loss on disposal of discontinued operations		6			(186	)		7
Other (income) expense, net		—			1			(3	)
Income (loss) before provision for income taxes		(10	)		219			68
Provision (benefit) for income taxes		(2	)		73			27
Income (loss) from discontinued operations, net of tax	$	(8	)	$	146		$	41

        At January 29, 2017 and January 31, 2016, 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 29, 2017		January 31, 2016
Current assets:
Receivables, less allowance for doubtful accounts of $—and $1	$	—	$	31
Inventories		—		12
Total current assets		—		43
Intangible assets, net		—		3
Other non-current assets		—		17
Total assets of discontinued operations	$	—	$	63
Current Liabilities:
Accounts payable	$	—	$	19
Accrued compensation and benefits		—		2
Other current liabilities		—		9
Total current liabilities		—		30
Other non-current liabilities		—		1
Total liabilities of discontinued operations	$	—	$	31

        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 29, 2017			January 31, 2016			February 1, 2015
Net cash flows provided by (used in) operating activities	$	(1	)	$	5		$	85
Cash flows from investing activities:
Capital expenditures		—			(4	)		(22	)
Proceeds from sales of businesses, net		28			809			198
Net cash flows provided by (used in) investing activities	$	28		$	805		$	176