SEGMENT INFORMATION (Tables)

6 Months Ended

Aug. 03, 2014

SEGMENT INFORMATION

Net Sales Adjusted Earning Before Interest, Taxes, Depreciation and Amortization and Other Measures for Reportable Segments and Total Continuing Operations

The following tables present Net sales, Adjusted EBITDA, and other measures for each of the reportable segments and total continuing operations for the periods indicated (amounts in millions):

	Facilities Maintenance		Waterworks		Power Solutions		Construction & Industrial - White Cap		Corporate & Other			Total Continuing Operations
Three Months Ended August 3, 2014
Net Sales	$	686	$	665	$	488	$	389	$	219		$	2,447
Adjusted EBITDA	139		57		21		33		8			258
Depreciation(1) & Software Amortization	13		3		3		7		6			32
Other Intangible Amortization	20		1		4		5		4			34
Three Months Ended August 4, 2013
Net Sales	$	638	$	601	$	456	$	336	$	206		$	2,237
Adjusted EBITDA	125		50		18		24		2			219
Depreciation(1) & Software Amortization	11		3		2		4		8			28
Other Intangible Amortization	20		1		4		5		3			33
Six Months Ended August 3, 2014
Net Sales	$	1,290	$	1,216	$	949	$	733	$	420		$	4,608
Adjusted EBITDA	248		98		39		55		8			448
Depreciation(1) & Software Amortization	25		5		4		11		16			61
Other Intangible Amortization	40		2		9		10		7			68
Six Months Ended August 4, 2013
Net Sales	$	1,199	$	1,124	$	918	$	646	$	398		$	4,285
Adjusted EBITDA	225		88		36		38		(3		)	384
Depreciation(1) & Software Amortization	22		5		3		8		16			54
Other Intangible Amortization	40		2		9		10		6			67

(1) Depreciation includes amounts recorded within Cost of sales in the Consolidated Statements of Operations and Comprehensive Income (Loss).

Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations

Reconciliation to Consolidated Financial Statements

	Three Months Ended						Six Months Ended
	August 3, 2014			August 4, 2013			August 3, 2014			August 4, 2013
Total Adjusted EBITDA	$	258		$	219		$	448		$	384
Depreciation and amortization (i)	66			61			129			121
Stock-based compensation	4			5			9			8
Restructuring	4			—			7			—
Management fee & related expenses paid to Equity Sponsors (ii)	—			1			—			2
Other	(2		)	—			(2		)	—
Operating income	186			152			305			253
Interest expense, net	116			145			232			292
Loss on extinguishment & modification of debt (iii)	—			46			2			87
Other (income) expense, net (iv)	—			20			1			20
Income (Loss) from Continuing Operations Before Provision for Income Taxes	70			(59		)	70			(146		)
Provision for income taxes	22			12			23			55
Income (loss) from continuing operations	48			(71		)	47			(201		)
Less Income (loss) from discontinued operations, net of tax	—			(1		)	(11		)	(2		)
Net Income (loss)	$	48		$	(72	)	$	36		$	(203	)

(i) Depreciation and amortization includes amounts recorded within Cost of sales in the Consolidated Statements of Operations.

(ii) The Company was previously party to consulting agreements with the Equity Sponsors whereby the Company paid the Equity Sponsors a $5 million annual aggregate management fee and related expenses.  These consulting agreements were terminated in conjunction with Holdings’ initial public offering in the second quarter of fiscal 2013.

(iii) Represents the loss on extinguishment of debt including the premium paid to repurchase or call the debt as well as the write-off of unamortized deferred financing costs and other assets or liabilities associated with such debt. Also includes the costs of debt modification.

(iv) Amount in the first six months of fiscal 2014 represents the costs expensed in connection with Holdings’ secondary public offering. The amounts in the second quarter and first six months of fiscal 2013 represent the costs expensed in connection with Holdings’ initial public offering, including approximately $18 million paid to the Equity Sponsors in the second quarter of fiscal 2013 for termination of the consulting agreements.