DISCONTINUED OPERATIONS

3 Months Ended

May 04, 2014

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 2 — DISCONTINUED OPERATIONS

In January 2014, the Company approved the disposal of Litemor, a specialty lighting distributor within the Company’s HD Supply Canada business. During the first quarter of fiscal 2014, the Company initiated the disposal process of Litemor through liquidation and branch sales, resulting in a pre-tax loss on disposal of $14 million, which includes cash and non-cash charges. The Company expects to finalize the Litemor disposal in the second quarter of fiscal 2014 and record an additional pre-tax loss on disposal of between $5 million and $10 million.

Summary Financial Information

In accordance with Accounting Standards Codification (“ASC”) 205-20, Discontinued Operations, the results of Litemor’s operations and the loss on disposal of the business are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations and loss on the disposal of business, 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):

	Three Months Ended
	May 4, 2014			May 5, 2013
Net sales	$	17		$	20
Loss on disposal of discontinued operations	(14		)	—
Income (loss) before provision for income taxes	$	(14	)	$	(1	)
Provision for income taxes	3			—
Income (loss) from discontinued operations, net of tax	$	(11	)	$	(1	)

In accordance with ASC 205-20, the assets and liabilities of Litemor are presented separately in the asset and liability sections, respectively, of the Consolidated Balance Sheets as of the date they are classified as a disposal group. At May 4, 2014 the assets and liabilities of Litemor included in the Consolidated Balance Sheets are comprised of $5 million of Receivables and $1 million of other current assets, reported within “Other current assets”, $1 million of Property & equipment, net, reported within “Other non-current assets”, and $2 million of Accounts payable and $2 million of Other accrued expenses, reported within “Other current liabilities”. At February 2, 2014, the assets and liabilities of Litemor included in the Consolidated Balance Sheets are comprised of $11 million of Receivables, $8 million of Inventory, and $1 million of other current assets, reported within “Other current assets”, $1 million of Property & equipment, net, reported within “Other non-current assets”, and $6 million of Accounts payable, $1 million of Accrued compensation & benefits, and $2 million of Other accrued expenses, reported within “Other current liabilities”.