SUBSIDIARY GUARANTORS (Tables)

3 Months Ended

May 04, 2014

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended May 4, 2014
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS

Net Sales	$	—		$	2,073		$	88		$	—		$	2,161
Cost of sales	—			1,464			66			—			1,530
Gross Profit	—			609			22			—			631
Operating expenses:
Selling, general and administrative	16			416			15			—			447
Depreciation and amortization	5			57			—			—			62
Restructuring	—			2			1			—			3
Total operating expenses	21			475			16			—			512
Operating Income (Loss)	(21		)	134			6			—			119
Interest expense	117			60			—			(61		)	116
Interest (income)	(60		)	(1		)	—			61			—
Net (earnings) loss of equity affiliates	(89		)	—			—			89			—
Loss on extinguishment & modification of debt	2			—			—			—			2
Other (income) expense, net	1			—			—			—			1
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	8			75			6			(89		)	—
Provision (benefit) for income taxes	20			(19		)	—			—			1
Income (Loss) from Continuing Operations	(12		)	94			6			(89		)	(1		)
Income (loss) from discontinued operations, net of tax	—			—			(11		)	—			(11		)
Net Income (Loss)	$	(12	)	$	94		$	(5	)	$	(89	)	$	(12	)
Other comprehensive income (loss) — foreign currency translation adjustment	1			—			1			(1		)	1
Total Comprehensive Income (Loss)	$	(11	)	$	94		$	(4	)	$	(90	)	$	(11	)

	Three Months Ended May 5, 2013
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS

Net Sales	$	—		$	1,966		$	82		$	—		$	2,048
Cost of sales	—			1,396			59			—			1,455
Gross Profit	—			570			23			—			593
Operating expenses:
Selling, general and administrative	19			398			16			—			433
Depreciation and amortization	4			55			—			—			59
Total operating expenses	23			453			16			—			492
Operating Income (Loss)	(23		)	117			7			—			101
Interest expense	147			75			—			(75		)	147
Interest (income)	(74		)	(1		)	—			75			—
Net (earnings) loss of equity affiliates	(69		)	—			—			69			—
Loss on extinguishment & Modification of debt	41			—			—			—			41
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	(68		)	43			7			(69		)	(87		)
Provision (benefit) for income taxes	63			(21		)	1			—			43
Income (Loss) from Continuing Operations	(131		)	64			6			(69		)	(130		)
Income (loss) from discontinued operations, net of tax	—			—			(1		)	—			(1		)
Net Income (Loss)	$	(131	)	$	64		$	5		$	(69	)	$	(131	)
Other comprehensive income (loss) — foreign currency translation adjustment	(1		)	—			(1		)	1			(1		)
Total Comprehensive Income (Loss)	$	(132	)	$	64		$	4		$	(68	)	$	(132	)

CONDENSED CONSOLIDATING BALANCE SHEETS

	As of May 4, 2014
	Debt Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total HDS
ASSETS
Current assets:
Cash and cash equivalents	$	78		$	17	$	54	$	—		$	149
Receivables, net	2			1,096		54		—			1,152
Inventories	—			1,130		51		—			1,181
Deferred tax asset	—			58		1		(51		)	8
Intercompany receivable	—			1		—		(1		)	—
Other current assets	14			33		11		—			58
Total current assets	94			2,335		171		(52		)	2,548
Property and equipment, net	59			340		3		—			402
Goodwill	—			3,132		5		—			3,137
Intangible assets, net	—			301		3		—			304
Deferred tax asset	40			—		5		(40		)	5
Investment in subsidiaries	3,425			—		—		(3,425		)	—
Intercompany notes receivable	2,192			525		—		(2,717		)	—
Other assets	125			5		2		—			132
Total assets	$	5,935		$	6,638	$	189	$	(6,234	)	$	6,528

LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	12		$	792	$	37	$	—		$	841
Accrued compensation and benefits	42			56		2		—			100
Current installments of long-term debt	10			—		—		—			10
Deferred tax liabilities	51			—		—		(51		)	—
Intercompany payable	—			—		1		(1		)	—
Other current liabilities	50			106		19		—			175
Total current liabilities	165			954		59		(52		)	1,126

Long-term debt, excluding current installments	5,722			—		—		—			5,722
Deferred tax liabilities	—			155		—		(40		)	115
Intercompany notes payable	525			2,192		—		(2,717		)	—
Other liabilities	297			35		7		—			339
Total liabilities	6,709			3,336		66		(2,809		)	7,302

Stockholder’s equity (deficit)	(774		)	3,302		123		(3,425		)	(774		)
Total liabilities and stockholder’s equity (deficit)	$	5,935		$	6,638	$	189	$	(6,234	)	$	6,528

	As of February 2, 2014
	Debt Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total HDS
ASSETS
Current assets:
Cash and cash equivalents	$	53		$	17	$	41	$	—		$	111
Receivables, net	2			984		60		—			1,046
Inventories	—			1,024		48		—			1,072
Deferred tax asset	—			58		1		(52		)	7
Other current assets	15			26		22		—			63
Total current assets	70			2,109		172		(52		)	2,299
Property and equipment, net	60			341		4		—			405
Goodwill	—			3,132		5		—			3,137
Intangible assets, net	—			335		3		—			338
Deferred tax asset	40			—		5		(40		)	5
Investment in subsidiaries	3,452			—		—		(3,452		)	—
Intercompany notes receivable	2,192			605		—		(2,797		)	—
Other assets	128			6		2		—			136
Total assets	$	5,942		$	6,528	$	191	$	(6,341	)	$	6,320

LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	11		$	618	$	35	$	—		$	664
Accrued compensation and benefits	45			98		6		—			149
Current installments of long-term debt	10			—		—		—			10
Deferred tax liabilities	50			—		—		(50		)	—
Other current liabilities	148			103		19		—			270
Total current liabilities	264			819		60		(50		)	1,093

Long-term debt, excluding current installments	5,534			—		—		—			5,534
Deferred tax liabilities	—			156		—		(42		)	114
Intercompany notes payable	605			2,192		—		(2,797		)	—
Other liabilities	307			34		6		—			347
Total liabilities	6,710			3,201		66		(2,889		)	7,088

Stockholder’s equity (deficit)	(768		)	3,327		125		(3,452		)	(768		)
Total liabilities and stockholder’s equity (deficit)	$	5,942		$	6,528	$	191	$	(6,341	)	$	6,320

CONDENSED CONSOLIDATING CASH FLOW STATEMENTS

	Three Months Ended May 4, 2014
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total HDS
Net cash flows from operating activities	$	(74	)	$	(57	)	$	12	$	—		$	(119	)
Cash flows from investing activities
Capital expenditures	(5		)	(23		)	—		—			(28		)
Proceeds from (payments of) intercompany notes	—			80			—		(80		)	—
Net cash flows from investing activities	(5		)	57			—		(80		)	(28		)
Cash flows from financing activities
Borrowings (repayments) of intercompany notes	(80		)	—			—		80			—
Borrowings of long-term debt	20			—			—		—			20
Repayments of long-term debt	(22		)	—			—		—			(22		)
Borrowings on long-term revolver	275			—			—		—			275
Repayments of long-term revolver	(85		)	—			—		—			(85		)
Debt issuance and modification fees	(3		)	—			—		—			(3		)
Other financing activities	(1		)									(1		)
Net cash flows from financing activities	104			—			—		80			184
Effect of exchange rates on cash	—			—			1		—			1
Net increase (decrease) in cash & cash equivalents	$	25		$	—		$	13	$	—		$	38
Cash and cash equivalents at beginning of period	53			17			41		—			111
Cash and cash equivalents at end of period	$	78		$	17		$	54	$	—		$	149

	Three Months Ended May 5, 2013
	Debt Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net cash flows from operating activities	$	(488	)	$	(77	)	$	8		$	—		$	(557	)
Cash flows from investing activities
Capital expenditures	(7		)	(24		)	(1		)	—			(32		)
Proceeds from sale of property and equipment	—			1			—			—			1
Proceeds from sale of investments	936			—			—			—			936
Proceeds from (payments of) intercompany notes	—			100			—			(100		)	—
Net cash flows from investing activities	929			77			(1		)	(100		)	905
Cash flows from financing activities
Borrowings (repayments) of intercompany notes	(100		)	—			—			100			—
Borrowings of long-term debt	79			—			—			—			79
Repayments of long-term debt	(638		)	—			—			—			(638		)
Borrowings on long-term revolver	348			—			—			—			348
Repayments of long-term revolver	(158		)	—			—			—			(158		)
Debt issuance and modification fees	(32		)	—			—			—			(32		)
Net cash flows from financing activities	(501		)	—			—			100			(401		)
Effect of exchange rates on cash	—			—			—			—			—
Net increase (decrease) in cash & cash equivalents	$	(60	)	$	—		$	7		$	—		$	(53	)
Cash and cash equivalents at beginning of period	91			15			35			—			141
Cash and cash equivalents at end of period	$	31		$	15		$	42		$	—		$	88