SUBSIDIARY GUARANTORS (Tables)

9 Months Ended

Nov. 03, 2013

SUBSIDIARY GUARANTORS

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended November 3, 2013
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net Sales	$	—		$	2,166		$	131		$	—		$	2,297
Cost of sales	—			1,529			100			—			1,629
Gross Profit	—			637			31			—			668
Operating expenses:
Selling, general and administrative	15			411			21			—			447
Depreciation and amortization	4			56			1			—			61
Total operating expenses	19			467			22			—			508
Operating Income (Loss)	(19		)	170			9			—			160
Interest expense	118			75			—			(75		)	118
Interest (income)	(73		)	(1		)	(1		)	75			—
Net (earnings) loss of equity affiliates	(137		)	—			—			137			—
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	73			96			10			(137		)	42
Provision (benefit) for income taxes	22			(33		)	2			—			(9		)
Income (Loss) from Continuing Operations	51			129			8			(137		)	51
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net Income (Loss)	$	51		$	129		$	8		$	(137	)	$	51
Other comprehensive income (loss) — foreign currency translation adjustment	—			—			—			—			—
Total Comprehensive Income (Loss)	$	51		$	129		$	8		$	(137	)	$	51

	Three Months Ended October 28, 2012
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net Sales	$	—		$	2,036		$	110		$	—		$	2,146
Cost of sales	—			1,448			82			—			1,530
Gross Profit	—			588			28			—			616
Operating expenses:
Selling, general and administrative	16			381			21			—			418
Depreciation and amortization	3			81			—			—			84
Total operating expenses	19			462			21			—			502
Operating Income (Loss)	(19		)	126			7			—			114
Interest expense	178			75			1			(89		)	165
Interest (income)	(75		)	(1		)	(13		)	89			—
Net (earnings) loss of equity affiliates	(71		)	—			—			71			—
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	(51		)	52			19			(71		)	(51		)
Provision (benefit) for income taxes	3			(3		)	2			—			2
Income (Loss) from Continuing Operations	(54		)	55			17			(71		)	(53		)
Income (loss) from discontinued operations, net of tax	4			(1		)	—			—			3
Net Income (Loss)	$	(50	)	$	54		$	17		$	(71	)	$	(50	)
Other comprehensive income — foreign currency translation adjustment	—			—			—			—			—
Total Comprehensive Income (Loss)	$	(50	)	$	54		$	17		$	(71	)	$	(50	)

	Nine Months Ended November 3, 2013
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net Sales	$	—		$	6,268		$	355		$	(1	)	$	6,622
Cost of sales	—			4,429			266			—			4,695
Gross Profit	—			1,839			89			(1		)	1,927
Operating expenses:
Selling, general and administrative	56			1,216			65			(1		)	1,336
Depreciation and amortization	12			167			2			—			181
Total operating expenses	68			1,383			67			(1		)	1,517
Operating Income (Loss)	(68		)	456			22			—			410
Interest expense	410			223			1			(225		)	409
Interest (income)	(222		)	(2		)	(1		)	225			—
Net (earnings) loss of equity affiliates	(333		)	—			—			333			—
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	(30		)	235			22			(333		)	(106		)
Provision (benefit) for income taxes	122			(79		)	3			—			46
Income (Loss) from Continuing Operations	(152		)	314			19			(333		)	(152		)
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net Income (Loss)	$	(152	)	$	314		$	19		(333		)	$	(152	)
Other comprehensive income (loss) — foreign currency translation adjustment	(4		)	—			(4		)	4			(4		)
Total Comprehensive Income (Loss)	$	(156	)	$	314		$	15		$	(329	)	$	(156	)

	Nine Months Ended October 28, 2012
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net Sales	$	—		$	5,726		$	315		$	—		$	6,041
Cost of sales	—			4,075			233			—			4,308
Gross Profit	—			1,651			82			—			1,733
Operating expenses:
Selling, general and administrative	52			1,107			64			—			1,223
Depreciation and amortization	10			239			1			—			250
Total operating expenses	62			1,346			65			—			1,473
Operating Income (Loss)	(62		)	305			17			—			260
Interest expense	545			225			1			(282		)	489
Interest (income)	(225		)	(3		)	(54		)	282			—
Net (earnings) loss of equity affiliates	(143		)	—			—			143			—
Loss on extinguishment & modification of debt	220			—			—			—			220
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	(459		)	83			70			(143		)	(449		)
Provision (benefit) for income taxes	19			(6		)	23			—			36
Income (Loss) from Continuing Operations	(478		)	89			47			(143		)	(485		)
Income (loss) from discontinued operations, net of tax	12			7			—			—			19
Net Income (Loss)	$	(466	)	$	96		$	47		$	(143	)	$	(466	)
Other comprehensive income — foreign currency translation adjustment	—			—			—			—			—
Total Comprehensive Income (Loss)	$	(466	)	$	96		$	47		$	(143	)	$	(466	)

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

	As of November 3, 2013
	Debt Issuer			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total HDS
ASSETS
Current assets:
Cash and cash equivalents	$	63		$	17	$	40	$	—		$	120
Receivables, net	6			1,129		89		—			1,224
Inventories	—			1,014		56		—			1,070
Deferred tax asset	—			48		2		(48		)	2
Intercompany receivable	—			2		—		(2		)	—
Other current assets	12			26		3		—			41
Total current assets	81			2,236		190		(50		)	2,457
Property and equipment, net	64			335		5		—			404
Goodwill	—			3,133		6		—			3,139
Intangible assets, net	—			368		4		—			372
Deferred tax asset	53			—		6		(53		)	6
Investment in subsidiaries	2,919			—		—		(2,919		)	—
Intercompany notes receivable	2,774			591		—		(3,365		)	—
Other assets	135			5		—		—			140
Total assets	$	6,026		$	6,668	$	211	$	(6,387	)	$	6,518
LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	15		$	747	$	47	$	—		$	809
Accrued compensation and benefits	36			78		5		—			119
Current installments of long-term debt	10			—		—		—			10
Deferred tax liabilities	49			—		—		(48		)	1
Intercompany payable	—			—		2		(2		)	—
Other current liabilities	51			107		14		—			172
Total current liabilities	161			932		68		(50		)	1,111
Long-term debt, excluding current installments	5,656			—		—		—			5,656
Deferred tax liabilities	—			150		—		(53		)	97
Intercompany notes payable	591			2,774		—		(3,365		)	—
Other liabilities	316			29		7		—			352
Total liabilities	6,724			3,885		75		(3,468		)	7,216
Stockholder’s equity (deficit)	(698		)	2,783		136		(2,919		)	(698		)
Total liabilities and stockholder’s equity (deficit)	$	6,026		$	6,668	$	211	$	(6,387	)	$	6,518

	As of February 3, 2013
	Debt Issuer			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total HDS
ASSETS
Current assets:
Cash and cash equivalents	$	91		$	15	$	35	$	—		$	141
Cash equivalents restricted for debt redemption	936			—		—		—			936
Receivables, net	4			937		67		—			1,008
Inventories	—			928		59		—			987
Deferred tax asset	—			48		1		(7		)	42
Intercompany receivable	—			1		—		(1		)	—
Other current assets	9			37		3		—			49
Total current assets	1,040			1,966		165		(8		)	3,163
Property and equipment, net	66			323		6		—			395
Goodwill	—			3,132		6		—			3,138
Intangible assets, net	—			469		4		—			473
Deferred tax asset	48			—		6		(48		)	6
Investment in subsidiaries	2,854			—		—		(2,854		)	—
Intercompany notes receivable	2,774			634		—		(3,408		)	—
Other assets	153			6		—		—			159
Total assets	$	6,935		$	6,530	$	187	$	(6,318	)	$	7,334
LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	14		$	638	$	41	$	—		$	693
Accrued compensation and benefits	46			108		6		—			160
Current installments of long-term debt	899			—		—		—			899
Deferred tax liabilities	7			—		—		(7		)	—
Intercompany payable	—			—		1		(1		)	—
Other current liabilities	183			98		10		—			291
Total current liabilities	1,149			844		58		(8		)	2,043
Long-term debt, excluding current installments	6,430			—		—		—			6,430
Deferred tax liabilities	—			152		—		(48		)	104
Intercompany notes payable	634			2,774		—		(3,408		)	—
Other liabilities	313			28		7		—			348
Total liabilities	8,526			3,798		65		(3,464		)	8,925
Stockholder’s equity (deficit)	(1,591		)	2,732		122		(2,854		)	(1,591		)
Total liabilities and stockholder’s equity (deficit)	$	6,935		$	6,530	$	187	$	(6,318	)	$	7,334

Condensed Consolidating Cash Flow Statements

CONDENSED CONSOLIDATING CASH FLOW STATEMENTS

	Nine Months Ended November 3, 2013
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net cash flows from operating activities	$	(549	)	$	31		$	8		$	—		$	(510	)
Cash flows from investing activities
Capital expenditures	(16		)	(79		)	(1		)	—			(96		)
Proceeds from sale of property and equipment	—			6			—			—			6
Settlement of acquisition of a business	—			2			—			—			2
Proceeds from sale of investments	936			—			—			—			936
(Investments in) return of capital of equity affiliates	2			—			—			(2		)	—
Proceeds from (payments of) intercompany notes	—			44			—			(44		)	—
Net cash flows from investing activities	922			(27		)	(1		)	(46		)	848
Cash flows from financing activities
Equity contribution (return of capital)	1,039			(2		)	—			2			1,039
Borrowings (repayments) of intercompany notes	(44		)	—			—			44			—
Borrowings of long-term debt	79			—			—			—			79
Repayments of long-term debt	(1,621		)	—			—			—			(1,621		)
Borrowings on long-term revolver	736			—			—			—			736
Repayments of long-term revolver	(556		)	—			—			—			(556		)
Debt issuance and modification fees	(34		)	—			—			—			(34		)
Net cash flows from financing activities	(401		)	(2		)	—			46			(357		)
Effect of exchange rates on cash	—			—			(2		)	—			(2		)
Net increase (decrease) in cash & cash equivalents	$	(28	)	$	2		$	5		$	—		$	(21	)
Cash and cash equivalents at beginning of period	91			15			35			—			141
Cash and cash equivalents at end of period	$	63		$	17		$	40		$	—		$	120

	Nine Months Ended October 28, 2012
	Parent Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Net cash flows from operating activities	$	(368	)	$	19		$	72		$	(50	)	$	(327	)
Cash flows from investing activities
Capital expenditures	(19		)	(59		)	(2		)	—			(80		)
Proceeds from sale of property and equipment	—			5			—			—			5
Purchase of debt investments	—			—			(1		)	1			—
Purchase of other investments	(985		)	—			—			—			(985		)
Proceeds from sale of a business	480			—			1			—			481
Payment for a business acquired	—			(196		)	—			—			(196		)
Proceeds from (payments of) intercompany notes	—			33			—			(33		)	—
(Investments in) return of capital of equity affiliates	(169		)	—			—			169			—
Other investing activities	—			—			(2		)	—			(2		)
Net cash flows from investing activities	(693		)	(217		)	(4		)	137			(777		)
Cash flows from financing activities
Dividend payment	—			—			(50		)	50			—
Equity contribution (return of capital)	—			204			(35		)	(169		)	—
Borrowings (repayments) of intercompany notes	(33		)	—			—			33			—
Borrowings of long-term debt	4,140			—			—			—			4,140
Repayments of long-term debt	(3,289		)	—			—			(1		)	(3,290		)
Borrowings on long-term revolver	1,192			—			—			—			1,192
Repayments of long-term revolver	(797		)	—			—			—			(797		)
Debt issuance and modification fees	(95		)	—			—			—			(95		)
Other financing activities	1			—			—			—			1
Net cash flows from financing activities	1,119			204			(85		)	(87		)	1,151
Net increase (decrease) in cash & cash equivalents	$	58		$	6		$	(17	)	$	—		$	47
Cash and cash equivalents at beginning of period	49			12			50			—			111
Cash and cash equivalents at end of period	$	107		$	18		$	33		$	—		$	158