ACQUISITION	3 Months Ended
Apr. 29, 2018
ACQUISITION
ACQUISITION	NOTE 2 — ACQUISITION HD Supply enters into strategic acquisitions to expand into new markets, new platforms, and new geographies in an effort to better service existing customers and attract new ones. In accordance with the acquisition method of accounting under Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), the results of acquisitions completed by HD Supply are reflected in the Company’s consolidated financial statements from the date of acquisition forward. On March 5, 2018, the Company completed the acquisition of A.H. Harris Construction Supply (“A.H. Harris”) for a total purchase price of approximately $362 million, net of cash acquired and subject to a final working capital adjustment. A.H. Harris is a leading specialty construction distributor serving the northeast and mid-Atlantic regions. This acquisition expands Construction & Industrial’s market presence in the northeastern United States. In accordance with ASC 805, the Company provisionally recorded the following assets and liabilities at fair value on the date of the A.H. Harris acquisition: $178 million in goodwill, $123 million in definite-lived intangible assets, $14 million in property & equipment, $64 million in net working capital, and $17 million in deferred tax liabilities. The total amount of goodwill expected to be deductible for tax purposes is $19 million. The definite-lived intangible assets are comprised of $110 million in customer relationships and $13 million of trade names that will be amortized over a period of 12 years and 5 years, respectively. From March 5, 2018 to April 29, 2018, A.H. Harris generated $53 million in Net sales. During first quarter 2018, the Company incurred approximately $2 million of costs related to the acquisition and integration of A.H. Harris. The Company expects to incur a total of approximately $4 million of acquisition and integration costs during fiscal 2018.

NOTE 2 — ACQUISITION

HD Supply enters into strategic acquisitions to expand into new markets, new platforms, and new geographies in an effort to better service existing customers and attract new ones. In accordance with the acquisition method of accounting under Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), the results of acquisitions completed by HD Supply are reflected in the Company’s consolidated financial statements from the date of acquisition forward.

On March 5, 2018, the Company completed the acquisition of A.H. Harris Construction Supply (“A.H. Harris”) for a total purchase price of approximately $362 million, net of cash acquired and subject to a final working capital adjustment. A.H. Harris is a leading specialty construction distributor serving the northeast and mid-Atlantic regions. This acquisition expands Construction & Industrial’s market presence in the northeastern United States.

In accordance with ASC 805, the Company provisionally recorded the following assets and liabilities at fair value on the date of the A.H. Harris acquisition: $178 million in goodwill, $123 million in definite-lived intangible assets, $14 million in property & equipment, $64 million in net working capital, and $17 million in deferred tax liabilities. The total amount of goodwill expected to be deductible for tax purposes is $19 million. The definite-lived intangible assets are comprised of $110 million in customer relationships and $13 million of trade names that will be amortized over a period of 12 years and 5 years, respectively.

From March 5, 2018 to April 29, 2018, A.H. Harris generated $53 million in Net sales. During first quarter 2018, the Company incurred approximately $2 million of costs related to the acquisition and integration of A.H. Harris. The Company expects to incur a total of approximately $4 million of acquisition and integration costs during fiscal 2018.