SEGMENT INFORMATION (Tables)

6 Months Ended

Aug. 02, 2015

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		Construction & Industrial - White Cap		Corporate & Other			Total Continuing Operations

Three Months Ended August 2, 2015
Net Sales	$	733	$	702	$	431	$	140		$	2,006
Adjusted EBITDA	156		66		43		(7		)	258
Depreciation(1) & Software Amortization	11		3		7		6			27
Other Intangible Amortization	2		—		—		1			3
Three Months Ended August 3, 2014
Net Sales	$	686	$	665	$	389	$	140		$	1,880
Adjusted EBITDA	139		57		33		(5		)	224
Depreciation(1) & Software Amortization	13		3		7		5			28
Other Intangible Amortization	20		1		5		1			27

Six Months Ended August 2, 2015
Net Sales	$	1,368	$	1,272	$	819	$	269		$	3,728
Adjusted EBITDA	278		111		75		(18		)	446
Depreciation(1) & Software Amortization	23		5		13		11			52
Other Intangible Amortization	3		1		—		3			7
Six Months Ended August 3, 2014
Net Sales	$	1,290	$	1,216	$	733	$	274		$	3,513
Adjusted EBITDA	248		98		55		(11		)	390
Depreciation(1) & Software Amortization	25		5		11		12			53
Other Intangible Amortization	40		2		10		3			55

(1)

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

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

	Three Months Ended					Six Months Ended
	August 2, 2015		August 3, 2014			August 2, 2015			August 3, 2014

Total Adjusted EBITDA	$	258	$	224		$	446		$	390
Depreciation and amortization (1)	30		55			59			108
Stock-based compensation	5		4			10			9
Restructuring	—		3			—			6
Other	1		(1		)	—			(1		)

Operating income	222		163			377			268
Interest expense, net	106		116			212			232
Loss on extinguishment & modification of debt (2)	—		—			—			2
Other (income) expense, net (3)	1		—			1			1

Income from Continuing Operations Before Provision for Income Taxes	115		47			164			33
Provision (benefit) for income taxes (4)	13		16			(170		)	13

Income from continuing operations	102		31			334			20
Less Income from discontinued operations, net of tax	7		17			17			16

Net Income	$	109	$	48		$	351		$	36

(1)

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

(2)

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.

(3)

Represents the costs expensed in connection with Holdings’ public offerings.

(4)

During the six months ended August 2, 2015, the Company recorded a reduction in unrecognized tax benefits as a result of IRS and state audit settlements. See “Note 6, Income Taxes” and “Note 10, Commitments and Contingencies” for discussion of the IRS audit settlement.