DISCONTINUED OPERATIONS

9 Months Ended

Oct. 30, 2016

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 2 — DISCONTINUED OPERATIONS

In May 2016, the Company completed the sale of its Interior Solutions business. Including the final working capital settlement in September 2016, the Company received cash proceeds of approximately $26 million, net of $2 million of transaction costs. As a result of the sale, the Company recorded a $10 million pre-tax loss.

In October 2015, the Company completed the sale of its Power Solutions business. Including the final working capital settlement in May 2016, the Company received cash proceeds of approximately $812 million, net of $16 million of transaction costs. As a result of the sale, the Company recorded a $189 million pre-tax gain.

Summary Financial Information

In accordance with Accounting Standards Codification (“ASC”) 205-20, “Discontinued Operations” and Accounting Standards Update (“ASU”) 2014-08, “Reporting discontinued operations and disclosure of disposals of components of an entity,” the results of Interior Solutions and Power Solutions 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. All Consolidated Statements of Operations and Comprehensive Income 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						Nine Months Ended
	October 30, 2016			November 1, 2015			October 30, 2016			November 1, 2015
Net sales	$	—		$	437		$	85		$	1,592
Cost of sales	—			365			64			1,335
Gross Profit	—			72			21			257
Operating expenses:
Selling, general and administrative	—			56			23			204
Depreciation and amortization	—			5			1			20
Total operating expenses	—			61			24			224
Operating Income (Loss)	—			11			(3		)	33
(Gain) loss on sales of discontinued operations	4			(186		)	7			(186		)
Other (income) expense, net	—			3			—			3
Income (loss) before provision for income taxes	(4		)	194			(10		)	216
Provision (benefit) for income taxes	—			(41		)	(2		)	(32		)
Income (loss) from discontinued operations, net of tax	$	(4	)	$	235		$	(8	)	$	248

At October 30, 2016 and January 31, 2016, the carrying amounts of major classes of assets and liabilities of discontinued operations included in the Consolidated Balance Sheets were as follows (amounts in millions):

	October 30, 2016		January 31, 2016
Current assets:
Receivables, less allowance for doubtful accounts of $0 and $1	$	—	$	31
Inventories	—		12
Total current assets	—		43
Intangible assets, net	—		3
Other non-current assets	—		17
Total assets of discontinued operations	$	—	$	63
Current Liabilities:
Accounts payable	$	—	$	19
Accrued compensation and benefits	—		2
Other current liabilities	—		9
Total current liabilities	—		30
Other non-current liabilities	—		1
Total liabilities of discontinued operations	$	—	$	31

The following table provides additional detail related to the net cash provided by (used in) operating and investing activities of the discontinued operations (amounts in millions):

	Nine Months Ended
	October 30, 2016			November 1, 2015
Net cash flows provided by (used in) operating activities	$	(3	)	$	31
Cash flows from investing activities:
Capital expenditures	(1		)	(3		)
Proceeds from sales of businesses, net	28			810
Net cash flows provided by (used in) investing activities	$	27		$	807