SUBSIDIARY GUARANTORS (Tables)

3 Months Ended

Apr. 30, 2017

SUBSIDIARY GUARANTORS

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

The following supplemental financial information sets forth, on a consolidating basis under the equity method of accounting, the condensed statements of operations and comprehensive income, the condensed balance sheets and the condensed statements of cash flows for the Debt Issuer, for the Subsidiary Guarantors and the Non-guarantor Subsidiaries and total consolidated Debt Issuer and subsidiaries (amounts in millions).

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended April 30, 2017
	Debt  Issuer			Subsidiary  Guarantors			Non-Guarantor  Subsidiaries		Elim- inations			Total  HDS
Net Sales	$	—		$	1,842		$	32	$	(1	)	$	1,873
Cost of sales	—			1,226			17		(1		)	1,242
Gross Profit	—			616			15		—			631
Operating expenses:
Selling, general and administrative	21			398			12		—			431
Depreciation and amortization	4			20			—		—			24
Restructuring	—			—			—		—			—
Total operating expenses	25			418			12		—			455
Operating Income (Loss)	(25		)	198			3		—			176
Interest expense	56			51			1		(59		)	49
Interest (income)	(51		)	(8		)	—		59			—
Net (earnings) loss of equity affiliates	(155		)	—			—		155			—
Loss on extinguishment of debt	3			—			—		—			3
Other (income) expense, net	2			—			—		—			2
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	120			155			2		(155		)	122
Provision (benefit) for income taxes	35			2			—		—			37
Income (Loss) from Continuing Operations	85			153			2		(155		)	85
Income (loss) from discontinued operations, net of tax	—			—			—		—			—
Net Income (Loss)	$	85		$	153		$	2	$	(155	)	$	85
Other comprehensive income—foreign currency translation adjustment	1			—			1		(1		)	1
Total Comprehensive Income (Loss)	$	86		$	153		$	3	$	(156	)	$	86

	Three Months Ended May 1, 2016
	Debt  Issuer			Subsidiary  Guarantors			Non- Guarantor  Subsidiaries		Elim- inations			Total  HDS
Net Sales	$	—		$	1,752		$	29	$	—		$	1,781
Cost of sales	—			1,156			16		—			1,172
Gross Profit	—			596			13		—			609
Operating expenses:
Selling, general and administrative	20			370			11		—			401
Depreciation and amortization	3			20			—		—			23
Restructuring	1			6			—		—			7
Total operating expenses	24			396			11		—			431
Operating Income (Loss)	(24		)	200			2		—			178
Interest expense	89			61			—		(65		)	85
Interest (income)	(61		)	(4		)	—		65			—
Net (earnings) loss of equity affiliates	(145		)	—			—		145			—
Loss on extinguishment of debt	115			—			—		—			115
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	(22		)	143			2		(145		)	(22		)
Provision (benefit) for income taxes	(8		)	—			—		—			(8		)
Income (Loss) from Continuing Operations	(14		)	143			2		(145		)	(14		)
Income (loss) from discontinued operations, net of tax	—			—			—		—			—
Net Income (Loss)	$	(14	)	$	143		$	2	$	(145	)	$	(14	)
Other comprehensive income—foreign currency translation adjustment	4			—			4		(4		)	4
Total Comprehensive Income (Loss)	$	(10	)	$	143		$	6	$	(149	)	$	(10	)

CONDENSED CONSOLIDATING BALANCE SHEETS

The following supplemental financial information sets forth, on a consolidating basis under the equity method of accounting, the condensed statements of operations and comprehensive income, the condensed balance sheets and the condensed statements of cash flows for the Debt Issuer, for the Subsidiary Guarantors and the Non-guarantor Subsidiaries and total consolidated Debt Issuer and subsidiaries (amounts in millions).

CONDENSED CONSOLIDATING BALANCE SHEETS

	As of April 30, 2017
	Debt  Issuer		Subsidiary  Guarantors		Non- Guarantor  Subsidiaries			Elim- inations			Total  HDS
ASSETS
Current assets:
Cash and cash equivalents	$	30	$	18	$	4		$	—		$	52
Receivables, net	2		995		18			—			1,015
Inventories	—		895		18			—			913
Intercompany receivables	—		1		—			(1		)	—
Other current assets	14		24		2			—			40
Total current assets	46		1,933		42			(1		)	2,020
Property and equipment, net	81		225		3			—			309
Goodwill	—		2,869		—			—			2,869
Intangible assets, net	—		108		1			—			109
Deferred tax asset	705		—		2			(128		)	579
Investment in subsidiaries	3,624		—		—			(3,624		)	—
Intercompany notes receivable	1,005		511		—			(1,516		)	—
Other assets	18		4		—			—			22
Total assets	$	5,479	$	5,650	$	48		$	(5,269	)	$	5,908
LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	12	$	696	$	13		$	—		$	721
Accrued compensation and benefits	29		53		2			—			84
Current installments of long-term debt	14		—		—			—			14
Intercompany payables	—		—		1			(1		)	—
Other current liabilities	56		93		5			—			154
Total current liabilities	111		842		21			(1		)	973
Long-term debt, excluding current installments	3,658		—		58			—			3,716
Deferred tax liabilities	—		128		—			(128		)	—
Intercompany notes payable	511		1,005		—			(1,516		)	—
Other liabilities	92		18		2			—			112
Total liabilities	4,372		1,993		81			(1,645		)	4,801
Stockholder’s equity (deficit)	1,107		3,657		(33		)	(3,624		)	1,107
Total liabilities and stockholder’s equity (deficit)	$	5,479	$	5,650	$	48		$	(5,269	)	$	5,908

	As of January 29, 2017
	Debt  Issuer		Subsidiary  Guarantors		Non- Guarantor  Subsidiaries			Elim- inations			Total  HDS
ASSETS
Current assets:
Cash and cash equivalents	$	51	$	17	$	5		$	—		$	73
Receivables, net	3		885		16			—			904
Inventories	—		813		18			—			831
Intercompany receivables	—		1		—			(1		)	—
Other current assets	13		22		2			—			37
Total current assets	67		1,738		41			(1		)	1,845
Property and equipment, net	76		225		2			—			303
Goodwill	—		2,869		—			—			2,869
Intangible assets, net	—		111		1			—			112
Deferred tax asset	681		—		2			(127		)	556
Investment in subsidiaries	2,451		—		—			(2,451		)	—
Intercompany notes receivable	2,192		584		—			(2,776		)	—
Other assets	16		4		—			—			20
Total assets	$	5,483	$	5,531	$	46		$	(5,355	)	$	5,705
LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	13	$	508	$	11		$	—		$	532
Accrued compensation and benefits	38		100		2			—			140
Current installments of long-term debt	14		—		—			—			14
Intercompany payables	—		—		1			(1		)	—
Other current liabilities	52		99		6			—			157
Total current liabilities	117		707		20			(1		)	843
Long-term debt, excluding current installments	3,737		—		61			—			3,798
Deferred tax liabilities	—		127		—			(127		)	—
Intercompany notes payable	584		2,192		—			(2,776		)	—
Other liabilities	87		17		2			—			106
Total liabilities	4,525		3,043		83			(2,904		)	4,747
Stockholder’s equity (deficit)	958		2,488		(37		)	(2,451		)	958
Total liabilities and stockholder’s equity (deficit)	$	5,483	$	5,531	$	46		$	(5,355	)	$	5,705

CONDENSED CONSOLIDATING CASH FLOW STATEMENTS

The following supplemental financial information sets forth, on a consolidating basis under the equity method of accounting, the condensed statements of operations and comprehensive income, the condensed balance sheets and the condensed statements of cash flows for the Debt Issuer, for the Subsidiary Guarantors and the Non-guarantor Subsidiaries and total consolidated Debt Issuer and subsidiaries (amounts in millions).

CONDENSED CONSOLIDATING CASH FLOW STATEMENTS

	Three Months Ended April 30, 2017
	Debt Issuer			Subsidiary  Guarantors			Non- Guarantor  Subsidiaries			Elim- inations			Total  HDS
Net cash flows from operating activities	$	139		$	(56	)	$	—		$	—		$	83
Cash flows from investing activities
Capital expenditures	(6		)	(18		)	—			—			(24		)
Proceeds from sales of property and equipment				2									2
Proceeds from (payments of) intercompany notes	—			73			—			(73		)	—
Net cash flows from investing activities	$	(6	)	$	57		$	—		$	(73	)	$	(22	)
Cash flows from financing activities
Borrowings of (repayments of) intercompany notes	(73		)	—			—			73			—
Repayments of long-term debt	(100		)	—			—			—			(100		)
Borrowings on long-term revolver debt	75			—			—			—			75
Repayments on long-term revolver debt	(54		)	—			(1		)	—			(55		)
Debt issuance costs	(5		)	—			—			—			(5		)
Other financing activities	3			—			—			—			3
Net cash flows from financing activities	(154		)	—			(1		)	73			(82		)
Effect of exchange rates on cash	—			—			—			—			—
Net increase (decrease) in cash & cash equivalents	$	(21	)	$	1		$	(1	)	$	—		$	(21	)
Cash and cash equivalents at beginning of period	51			17			5			—			73
Cash and cash equivalents at end of period	$	30		$	18		$	4		$	—		$	52

	Three Months Ended May 1, 2016
	Debt Issuer			Subsidiary  Guarantors			Non- Guarantor  Subsidiaries		Elim- inations			Total  HDS
Net cash flows from operating activities	$	169		$	(93	)	$	—	$	—		$	76
Cash flows from investing activities
Capital expenditures	(4		)	(13		)	—		—			(17		)
Proceeds from (payments of) intercompany notes	—			105			—		(105		)	—
Other investing activities	(1		)	1			—		—			—
Net cash flows from investing activities	$	(5	)	$	93		$	—	$	(105	)	$	(17	)
Cash flows from financing activities
Borrowings of (repayments of) intercompany notes	(105		)	—			—		105			—
Borrowings of long-term debt	1,000			—			—		—			1,000
Repayments of long-term debt	(1,108		)	—			—		—			(1,108		)
Debt issuance costs	(14		)	—			—		—			(14		)
Other financing activities	(1		)	(1		)	—		—			(2		)
Net cash flows from financing activities	(228		)	(1		)	—		105			(124		)
Effect of exchange rates on cash	—			—			2		—			2
Net increase (decrease) in cash & cash equivalents	$	(64	)	$	(1	)	$	2	$	—		$	(63	)
Cash and cash equivalents at beginning of period	233			18			15		—			266
Cash and cash equivalents at end of period	$	169		$	17		$	17	$	—		$	203