SUBSIDIARY GUARANTORS (Tables)

9 Months Ended

Nov. 01, 2015

SUBSIDIARY GUARANTORS

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

	Three Months Ended November 1, 2015
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net Sales	$	—		$	1,982		$	31		$	(1	)	$	2,012
Cost of sales	—			1,330			16			—			1,346
Gross Profit	—			652			15			(1		)	666
Operating expenses:
Selling, general and administrative	17			378			11			(1		)	405
Depreciation and amortization	4			24			—			—			28
Restructuring Charge	—			4			—			—			4
Total operating expenses	21			406			11			(1		)	437
Operating Income (Loss)	(21		)	246			4			—			229
Interest expense	100			61			—			(62		)	99
Interest (income)	(60		)	(2		)	—			62			—
Loss on extinguishment & modification of debt	100			—			—			—			100
Other (income) expense, net	—			—			—			—			—
Net (earnings) loss of equity affiliates	(343		)	—			—			343			—
Income From Continuing Operations Before Provision (Benefit) for Income Taxes	182			187			4			(343		)	30
Provision (benefit) for income taxes	157			(145		)	3			—			15
Income from Continuing Operations	25			332			1			(343		)	15
Income (loss) from discontinued operations, net of tax	225			13			(3		)	—			235
Net Income (Loss)	$	250		$	345		$	(2	)	$	(343	)	$	250
Other comprehensive income (loss) — foreign currency translation adjustment	18			—			18			(18		)	18
Total Comprehensive Income (Loss)	$	268		$	345		$	16		$	(361	)	$	268

	Three Months Ended November 2, 2014
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net Sales	$	—		$	1,881		$	35		$	(2	)	$	1,914
Cost of sales	—			1,282			18			(1		)	1,299
Gross Profit	—			599			17			(1		)	615
Operating expenses:
Selling, general and administrative	20			356			14			—			390
Depreciation and amortization	3			42			1			—			46
Total operating expenses	23			398			15			—			436
Operating Income (Loss)	(23		)	201			2			(1		)	179
Interest expense	117			61			—			(63		)	115
Interest (income)	(59		)	(3		)	—			62			—
Other (income) expense, net	(4		)	—			—			—			(4		)
Net (earnings) loss of equity affiliates	(105		)	—			—			105			—
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	28			143			2			(105		)	68
Provision (benefit) for income taxes	(33		)	62			(1		)	—			28
Income (Loss) from Continuing Operations	61			81			3			(105		)	40
Income (loss) from discontinued operations, net of tax	(1		)	19			2			—			20
Net Income (Loss)	$	60		$	100		$	5		$	(105	)	$	60
Other comprehensive income (loss) — foreign currency translation adjustment	(3		)	—			(3		)	3			(3		)
Total Comprehensive Income (Loss)	$	57		$	100		$	2		$	(102	)	$	57

	Nine Months Ended November 1, 2015
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries		Eliminations			Total HDS
Net Sales	$	—		$	5,648		$	94	$	(2	)	$	5,740
Cost of sales	—			3,786			50		(1		)	3,835
Gross Profit	—			1,862			44		(1		)	1,905
Operating expenses:
Selling, general and administrative	60			1,118			34		(1		)	1,211
Depreciation and amortization	11			72			1		—			84
Restructuring charge	—			4			—		—			4
Total operating expenses	71			1,194			35		(1		)	1,299
Operating Income (Loss)	(71		)	668			9		—			606
Interest expense	315			182			—		(186		)	311
Interest (income)	(182		)	(4		)	—		186			—
Loss on extinguishment & modification of debt	100			—			—		—			100
Other (income) expense, net	1			—			—		—			1
Net (earnings) loss of equity affiliates	(493		)	—			—		493			—
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	188			490			9		(493		)	194
Provision (benefit) for income taxes	(188		)	29			4		—			(155		)
Income (Loss) from Continuing Operations	376			461			5		(493		)	349
Income from discontinued operations, net of tax	225			22			5		—			252
Net Income (Loss)	$	601		$	483		$	10	$	(493	)	$	601
Other comprehensive income (loss) — foreign currency translation adjustment	16			—			16		(16		)	16
Total Comprehensive Income (Loss)	$	617		$	483		$	26	$	(509	)	$	617

	Nine Months Ended November 2, 2014
	Debt Issuer			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total HDS
Net Sales	$	—		$	5,329		$	100		$	(2	)	$	5,427
Cost of sales	—			3,616			55			(1		)	3,670
Gross Profit	—			1,713			45			(1		)	1,757
Operating expenses:
Selling, general and administrative	53			1,061			39			(1		)	1,152
Depreciation and amortization	12			139			1			—			152
Restructuring	1			5			—			—			6
Total operating expenses	66			1,205			40			(1		)	1,310
Operating Income (Loss)	(66		)	508			5			—			447
Interest expense	349			182			—			(184		)	347
Interest (income)	(181		)	(3		)	—			184			—
Loss on extinguishment & modification of debt	2			—			—			—			2
Other (income) expense, net	(3		)	—			—			—			(3		)
Net (earnings) loss of equity affiliates	(234		)	—			—			234			—
Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes	1			329			5			(234		)	101
Provision (benefit) for income taxes	(101		)	143			(1		)	—			41
Income (Loss) from Continuing Operations	102			186			6			(234		)	60
Income (loss) from discontinued operations, net of tax	(6		)	44			(2		)	—			36
Net Income (Loss)	$	96		$	230		$	4		$	(234	)	$	96
Other comprehensive income (loss) — foreign currency translation adjustment	(1		)	—			(1		)	1			(1		)
Total Comprehensive Income (Loss)	$	95		$	230		$	3		$	(233	)	$	95

Condensed Consolidating Balance Sheets

	As of November 1, 2015
	Debt Issuer			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total HDS
ASSETS
Current assets:
Cash and cash equivalents	$	43		$	18	$	12	$	—		$	73
Receivables, net	4			1,069		19		—			1,092
Inventories	—			848		20		—			868
Deferred tax asset	—			57		2		(55		)	4
Other current assets	11			25		1		—			37
Total current assets	58			2,017		54		(55		)	2,074
Property and equipment, net	48			276		3		—			327
Goodwill	—			2,869		—		—			2,869
Intangible assets, net	—			132		2		—			134
Deferred tax asset	—			—		1		—			1
Investment in subsidiaries	2,740			—		—		(2,740		)	—
Intercompany notes receivable	2,192			594		—		(2,786		)	—
Other assets	74			3		—		—			77
Total assets	$	5,112		$	5,891	$	60	$	(5,581	)	$	5,482
LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	10		$	627	$	14	$	—		$	651
Accrued compensation and benefits	38			89		2		—			129
Current installments of long-term debt	9			—		—		—			9
Deferred tax liabilities	55			—		—		(55		)	—
Other current liabilities	57			120		9		—			186
Total current liabilities	169			836		25		(55		)	975
Long-term debt, excluding current installments	4,385			—		—		—			4,385
Deferred tax liabilities	13			129		—		—			142
Intercompany notes payable	594			2,192		—		(2,786		)	—
Other liabilities	79			26		3		—			108
Total liabilities	5,240			3,183		28		(2,841		)	5,610
Stockholder’s equity (deficit)	(128		)	2,708		32		(2,740		)	(128		)
Total liabilities and stockholder’s equity (deficit)	$	5,112		$	5,891	$	60	$	(5,581	)	$	5,482

	As of February 1, 2015
	Debt Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total HDS
ASSETS
Current assets:
Cash and cash equivalents	$	28		$	25	$	32	$	—		$	85
Receivables, net	1			851		16		—			868
Inventories	—			767		17		—			784
Deferred tax asset	—			66		2		(59		)	9
Current assets of discontinued operations	—			455		54					509
Other current assets	12			29		2		—			43
Total current assets	41			2,193		123		(59		)	2,298
Property and equipment, net	55			283		2		—			340
Goodwill	—			2,868		1		—			2,869
Intangible assets, net	—			143		2		—			145
Deferred tax asset	8			—		1		(8		)	1
Non-current assets of discontinued operations	—			288		7		—			295
Investment in subsidiaries	3,216			—		—		(3,216		)	—
Intercompany notes receivable	2,191			611		—		(2,802		)	—
Other assets	109			3		—		—			112
Total assets	$	5,620		$	6,389	$	136	$	(6,085	)	$	6,060
LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	14		$	485	$	11	$	—		$	510
Accrued compensation and benefits	50			90		4		—			144
Current installments of long-term debt	34			—		—		—			34
Deferred tax liabilities	59			—		—		(59		)	—
Current liabilities of discontinued operations	—			200		17		—			217
Other current liabilities	124			97		9		—			230
Total current liabilities	281			872		41		(59		)	1,135
Long-term debt, excluding current installments	5,223			—		—		—			5,223
Deferred tax liabilities	—			174		—		(8		)	166
Intercompany notes payable	611			2,191		—		(2,802		)	—
Other liabilities	265			26		5		—			296
Total liabilities	6,380			3,263		46		(2,869		)	6,820
Stockholder’s equity (deficit)	(760		)	3,126		90		(3,216		)	(760		)
Total liabilities and stockholder’s equity (deficit)	$	5,620		$	6,389	$	136	$	(6,085	)	$	6,060

Condensed Consolidating Cash Flow Statements

	Nine Months Ended November 1, 2015
	Debt Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total HDS
Net cash flows from operating activities	$	130		$	29		$	14		$	—		$	173
Cash flows from investing activities
Capital expenditures	(9		)	(52		)	—			—			(61		)
Proceeds from sale of property and equipment	—			2			—			—			2
Proceeds from sale of a business	810			—			—			—			810
Investments in equity affiliates - Return of capital	34			—			—			(34		)	—
Proceeds from (payments of) intercompany notes	—			16			—			(16		)	—
Other investing activities	—			—			—			—			—
Net cash flows from investing activities	835			(34		)	—			(50		)	751
Cash flows from financing activities
Equity contribution (return of capital)	—			(2		)	(32		)	34			—
Borrowings from (repayments to) intercompany notes	(16		)	—			—			16			—
Borrowings of long-term debt	287			—			—			—			287
Repayments of long-term debt	(1,150		)	—			—			—			(1,150		)
Borrowings on long-term revolver	784			—			—			—			784
Repayments on long-term revolver	(850		)	—			—			—			(850		)
Debt issuance and modification fees	(6		)	—			—			—			(6		)
Other financing activities	1			—			—			—			1
Net cash flows from financing activities	(950		)	(2		)	(32		)	50			(934		)
Effect of exchange rates on cash	—			—			(2		)	—			(2		)
Net increase (decrease) in cash & cash equivalents	$	15		$	(7	)	$	(20	)	$	—		$	(12	)
Cash and cash equivalents at beginning of period	28			25			32			—			85
Cash and cash equivalents at end of period	$	43		$	18		$	12		$	—		$	73

	Nine Months Ended November 2, 2014
	Debt Issuer			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total HDS
Net cash flows from operating activities	$	41		$	55		$	25		$	—		$	121
Cash flows from investing activities
Capital expenditures	(11		)	(79		)	(2		)	—			(92		)
Investments in equity affiliates - Return of capital	27			—			—			(27		)	—
Proceeds from sale of property and equipment	—			3			—			—			3
Proceeds from (payments of) intercompany notes	—			25			—			(25		)	—
Other investing activities	1			—			—			(1		)	—
Net cash flows from investing activities	17			(51		)	(2		)	(53		)	(89		)
Cash flows from financing activities
Equity contribution (return of capital)	—			—			(27		)	27			—
Borrowings (repayments) of intercompany notes	(25		)	—			—			25			—
Borrowings of long-term debt	20			—			—			—			20
Repayments of long-term debt	(27		)	—			—			—			(27		)
Borrowings on long-term revolver	524			—			—			—			524
Repayments of long-term revolver	(554		)	—			—			—			(554		)
Debt issuance and modification fees	(3		)	—			—			—			(3		)
Other financing activities	(1		)				—			1			—
Net cash flows from financing activities	(66		)	—			(27		)	53			(40		)
Effect of exchange rates on cash	—			—			—			—			—
Net increase (decrease) in cash & cash equivalents	$	(8	)	$	4		$	(4	)	$	—		$	(8	)
Cash and cash equivalents at beginning of period	53			17			41			—			111
Cash and cash equivalents at end of period	$	45		$	21		$	37		$	—		$	103