DISCONTINUED OPERATIONS

3 Months Ended

May 03, 2015

DISCONTINUED OPERATIONS.

DISCONTINUED OPERATIONS

NOTE 2 — DISCONTINUED OPERATIONS

In January 2015, the Company sold substantially all of the assets of its Hardware Solutions business to Home Depot. The Company received cash proceeds of approximately $198 million, net of $2 million of transaction costs. As a result of the sale, the Company recorded an $8 million pre-tax gain in fiscal 2014.

In January 2014, the Company approved the disposal of Litemor, a specialty lighting distributor within the Company’s HD Supply Canada business. During fiscal 2014, the Company finalized the disposal process of Litemor through liquidation and branch sales, resulting in a pre-tax loss on disposal of $15 million, which includes cash and non-cash charges.

Summary Financial Information

In accordance with Accounting Standards Codification (“ASC”) 205-20, Discontinued Operations, the results of the Hardware Solutions and Litemor’s operations and the gains/losses on sales of the businesses are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations and gain/loss on the disposition of businesses, 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 3, 2015		May 4, 2014
Net sales	$	—	$	83
Gain (loss) on disposal of discontinued operations	—		(14		)
Income (loss) before provision for income taxes	$	—	$	(11	)
Provision for income taxes	—		3
Income (loss) from discontinued operations, net of tax	$	—	$	(8	)