GUARANTOR SUBSIDIARIES (Tables)

12 Months Ended

Jan. 29, 2017

GUARANTOR SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

Amounts in millions

	Fiscal Year 2016
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries		Eliminations			Total HDS			Holdings
Net Sales	$	—		$	7,319		$	122	$	(2	)	$	7,439		$	—
Cost of sales		—			4,843			65		(1	)		4,907			—
Gross Profit		—			2,476			57		(1	)		2,532			—
Operating expenses:
Selling, general and administrative		71			1,518			49		(1	)		1,637			—
Depreciation and amortization		13			80			2		—			95			—
Restructuring		6			3			—		—			9			—
Total operating expenses		90			1,601			51		(1	)		1,741			—
Operating Income (Loss)		(90	)		875			6		—			791			—
Interest expense		287			243			1		(262	)		269			—
Interest (income)		(244	)		(18	)		—		262			—			—
Net (earnings) loss of equity affiliates		(598	)		—			—		598			—			(196	)
Loss on extinguishment & modification of debt		179			—			—		—			179			—
Other income (expense), net		—			—			—		—			—			—
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes		286			650			5		(598	)		343			196
Provision (benefit) for income taxes		83			52			4		—			139			—
Income (Loss) from Continuing Operations		203			598			1		(598	)		204			196
Income (loss) from discontinued operations, net of tax		(7	)		(1	)		—		—			(8	)		—
Net Income (Loss)	$	196		$	597		$	1	$	(598	)	$	196		$	196
Other comprehensive income—foreign currency translation adjustment		1			—			1		(1	)		1			1
Total Comprehensive Income (Loss)	$	197		$	597		$	2	$	(599	)	$	197		$	197

	Fiscal Year 2015
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries		Eliminations			Total HDS			Holdings
Net Sales	$	—		$	7,004		$	121	$	(2	)	$	7,123		$	—
Cost of sales		—			4,670			65		(1	)		4,734			—
Gross Profit		—			2,334			56		(1	)		2,389			—
Operating expenses:
Selling, general and administrative		73			1,418			45		(1	)		1,535			—
Depreciation and amortization		15			92			1		—			108
Restructuring charge		2			7			—		—			9			—
Total operating expenses		90			1,517			46		(1	)		1,652			—
Operating Income (Loss)		(90	)		817			10		—			737			—
Interest expense		399			243			1		(249	)		394			—
Interest (income)		(243	)		(6	)		—		249			—			—
Net (earnings) loss of equity affiliates		(365	)		—			—		365			—			(1,472	)
Loss on extinguishment & modification of debt		100			—			—		—			100			—
Other income (expense), net		1			—			—		—			1			—
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes		18			580			9		(365	)		242			1,472
Provision (benefit) for income taxes		(1,337	)		249			4		—			(1,084	)		—
Income (Loss) from Continuing Operations		1,355			331			5		(365	)		1,326			1,472
Income (loss) from discontinued operations, net of tax		117			21			8		—			146			—
Net Income (Loss)	$	1,472		$	352		$	13	$	(365	)	$	1,472		$	1,472
Other comprehensive income—foreign currency translation adjustment		12			—			12		(12	)		12			12
Total Comprehensive Income (Loss)	$	1,484		$	352		$	25	$	(377	)	$	1,484		$	1,484

	Fiscal Year 2014
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net Sales	$	—		$	6,555		$	129		$	(2	)	$	6,682		$	—
Cost of sales		—			4,417			71			(1	)		4,487			—
Gross Profit		—			2,138			58			(1	)		2,195			—
Operating expenses:
Selling, general and administrative		61			1,331			55			(1	)		1,446			—
Depreciation and amortization		17			160			1			—			178			—
Restructuring		1			5			—			—			6			—
Total operating expenses		79			1,496			56			(1	)		1,630			—
Operating Income (Loss)		(79	)		642			2			—			565			—
Interest expense		464			242			1			(245	)		462			—
Interest (income)		(241	)		(4	)		—			245			—			—
Net (earnings) loss of equity affiliates		(427	)		—			—			427			—			(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		20			404			1			(427	)		(2	)		3
Provision (benefit) for income taxes		8			28			—			—			36			—
Income (Loss) from Continuing Operations		12			376			1			(427	)		(38	)		3
Income (loss) from discontinued operations, net of tax		(9	)		45			5			—			41			—
Net Income (Loss)	$	3		$	421		$	6		$	(427	)	$	3		$	3
Other comprehensive income—foreign currency translation adjustment		(13	)		—			(13	)		13			(13	)		(13	)
Total Comprehensive Income (Loss)	$	(10	)	$	421		$	(7	)	$	(414	)	$	(10	)	$	(10	)

CONDENSED CONSOLIDATING BALANCE SHEETS

Amounts in millions

	As of January 29, 2017
	Debt Issuer		Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Total HDS		Holdings
ASSETS
Current assets:
Cash and cash equivalents	$	51	$	17	$	5		$	—		$	73	$	2
Receivables, net		3		885		16			—			904		—
Inventories		—		813		18			—			831		—
Intercompany receivables		—		1		—			(1	)		—		—
Other current assets		13		22		2			—			37		—
Total current assets		67		1,738		41			(1	)		1,845		2
Property and equipment, net		76		225		2			—			303		—
Goodwill		—		2,869		—			—			2,869		—
Intangible assets, net		—		111		1			—			112		—
Deferred tax asset		681		—		2			(127	)		556		—
Investment in subsidiaries		2,451		—		—			(2,451	)		—		958
Intercompany notes receivable		2,192		584		—			(2,776	)		—		—
Other assets		16		4		—			—			20		—
Total assets	$	5,483	$	5,531	$	46		$	(5,355	)	$	5,705	$	960
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	13	$	508	$	11		$	—		$	532	$	—
Accrued compensation and benefits		38		100		2			—			140		—
Current installments of long-term debt		14		—		—			—			14		—
Intercompany payables		—		—		1			(1	)		—		—
Other current liabilities		52		99		6			—			157		—
Total current liabilities		117		707		20			(1	)		843		—
Long-term debt, excluding current installments		3,737		—		61			—			3,798		—
Deferred tax liabilities		—		127		—			(127	)		—		—
Intercompany notes payable		584		2,192		—			(2,776	)		—		—
Other liabilities		87		17		2			—			106		—
Total liabilities		4,525		3,043		83			(2,904	)		4,747		—
Stockholders' equity (deficit)		958		2,488		(37	)		(2,451	)		958		960
Total liabilities and stockholders' equity (deficit)	$	5,483	$	5,531	$	46		$	(5,355	)	$	5,705	$	960

	As of January 31, 2016
	Debt Issuer		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Total HDS		Holdings
ASSETS
Current assets:
Cash and cash equivalents	$	233	$	18	$	15	$	—		$	266	$	3
Receivables, net		5		852		15		—			872		—
Inventories		—		753		17		—			770		—
Current assets of discontinued operations		—		43		—		—			43		—
Other current assets		9		19		1		—			29		—
Total current assets		247		1,685		48		—			1,980		3
Property and equipment, net		55		253		2		—			310		—
Goodwill		—		2,869		—		—			2,869		—
Intangible assets, net		—		125		2		—			127		—
Deferred tax asset		759		—		2		(76	)		685		—
Non-current assets of discontinued operations		—		20		—		—			20		—
Investment in subsidiaries		2,623		—		—		(2,623	)		—		742
Intercompany notes receivable		2,192		627		—		(2,819	)		—		—
Other assets		20		2		—		—			22		—
Total assets	$	5,896	$	5,581	$	54	$	(5,518	)	$	6,013	$	745
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	12	$	469	$	9	$	—		$	490	$	—
Accrued compensation and benefits		38		101		3		—			142		—
Current installments of long-term debt		9		—		—		—			9		—
Current liabilities of discontinued operations		—		30		—		—			30		—
Other current liabilities		93		99		7		—			199		—
Total current liabilities		152		699		19		—			870		—
Long-term debt, excluding current installments		4,302		—		—		—			4,302		—
Deferred tax liabilities		—		76		—		(76	)		—		—
Non-current liabilities of discontinued operations		—		1		—		—			1		—
Intercompany notes payable		627		2,192		—		(2,819	)		—		—
Other liabilities		73		22		3		—			98		—
Total liabilities		5,154		2,990		22		(2,895	)		5,271		—
Stockholders' equity (deficit)		742		2,591		32		(2,623	)		742		745
Total liabilities and stockholders' equity (deficit)	$	5,896	$	5,581	$	54	$	(5,518	)	$	6,013	$	745

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Amounts in millions

	Fiscal Year 2016
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net cash flows from operating activities	$	524		$	(12	)	$	1		$	—		$	513		$	—
Cash flows from investing activities
Capital expenditures		(17	)		(63	)		(1	)		—			(81	)		—
Proceeds from sale of property and equipment		—			32			—			—			32			—
Proceeds from sale of businesses, net		28			—			—			—			28			—
(Investments in) return of capital in equity affiliates		71			—			—			(71	)		—			—
Proceeds from (payments of) intercompany notes		—			43			—			(43	)		—			—
Other investing activities		—			—			—			—			—			—
Net cash flows from investing activities	$	82		$	12		$	(1	)	$	(114	)	$	(21	)	$	—
Cash flows from financing activities
Proceeds from stock options exercised		—			—			—			—			—			33
Purchase of treasury shares		—			—			—			—			—			(34	)
Equity contribution (return of capital)		—			—			(71	)		71			—			—
Borrowings from (repayments to) intercompany notes		(43	)		—			—			43			—			—
Borrowings of long-term debt		1,547			—			—			—			1,547			—
Repayments of long-term debt		(2,631	)		—			—			—			(2,631	)		—
Borrowings on long-term revolver		629			—			60			—			689			—
Repayments on long-term revolver		(269	)		—			—			—			(269	)		—
Debt issuance and modification fees		(19	)		—			—			—			(19	)		—
Other financing activities		(2	)		(1	)		—			—			(3	)		—
Net cash flows from financing activities		(788	)		(1	)		(11	)		114			(686	)	$	(1	)
Effect of exchange rates on cash		—			—			1			—			1			—
Net increase (decrease) in cash & cash equivalents	$	(182	)	$	(1	)	$	(10	)	$	—		$	(193	)	$	(1	)
Cash and cash equivalents at beginning of period		233			18			15			—			266			—
Cash and cash equivalents at end of period	$	51		$	17		$	5		$	—		$	73		$	(1	)

	Fiscal Year 2015
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total HDS			Holdings
Net cash flows from operating activities	$	329		$	75		$	18		$	—		$	422		$	—
Cash flows from investing activities
Capital expenditures		(18	)		(67	)		(1	)		—			(86	)		—
Proceeds from sale of property and equipment		—			3			—			—			3			—
Proceeds from sale of a business, net		809			—			—			—			809			—
(Investments in) return of capital in equity affiliates		34			—			—			(34	)		—			—
Proceeds from (payments of) intercompany notes		—			(16	)		—			16			—			—
Net cash flows from investing activities	$	825		$	(80	)	$	(1	)	$	(18	)	$	726		$	—
Cash flows from financing activities
Proceeds from stock options exercised		—			—			—			—			—			74
Purchase of treasury shares		—			—			—			—			—			(71	)
Equity contribution (return of capital)		—			(2	)		(32	)		34			—			—
Borrowings (repayments) of intercompany notes		16			—			—			(16	)		—			—
Borrowings of long-term debt		287			—			—			—			287			—
Repayments of long-term debt		(1,152	)		—			—			—			(1,152	)		—
Borrowings on long-term revolver		784			—			—			—			784			—
Repayments of long-term revolver		(880	)		—			—			—			(880	)		—
Debt issuance and modification fees		(6	)		—			—			—			(6	)		—
Other financing activities		2			—			—			—			2			—
Net cash flows from financing activities		(949	)		(2	)		(32	)		18			(965	)	$	3
Effect of exchange rates on cash		—			—			(2	)		—			(2	)		—
Net increase (decrease) in cash & cash equivalents	$	205		$	(7	)	$	(17	)	$	—		$	181		$	3
Cash and cash equivalents at beginning of period		28			25			32			—			85			—
Cash and cash equivalents at end of period	$	233		$	18		$	15		$	—		$	266		$	3

	Fiscal Year 2014
	Debt Issuer			Subsidiary Guarantors			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, net		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		$	—