NOTE 8—SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION

Receivables

Receivables as of July 29, 2018 and January 28, 2018 consisted of the following (amounts in millions):


	July 29, 2018		January 28, 2018
Trade receivables, net of allowance for doubtful accounts	$	770	$	540
Vendor rebate receivables		57		58
Other receivables		16		14
Total receivables, net	$	843	$	612

Other Current Liabilities

Other current liabilities as of July 29, 2018 and January 28, 2018 consisted of the following (amounts in millions):


	July 29, 2018		January 28, 2018
Corporate headquarters financing liability	$	87	$	—
Accrued non-income taxes		36		27
Accrued interest		17		21
Refund liability (1)		15		—
Other		92		90
Total other current liabilities	$	247	$	138

(1)

This amount represents the Company’s sales return estimate as of July 29, 2018 classified as a Current liability within the Consolidated Balance Sheet as required per ASC 606, Revenue from Contracts with Customers. The sales return estimate as of January 28, 2018 was approximately $12 million and was classified within Net receivables within the Consolidated Balance Sheet.

Supplemental Cash Flow Information

Cash paid for interest in the six months ended July 29, 2018 and July 30, 2017 was $61 million and $92 million, respectively. During the six months ended July 30, 2017, the Company paid $4 million of original issue discounts related to the extinguishment of debt.

Cash paid for income taxes, net of refunds, in the six months ended July 29, 2018 and July 30, 2017 was approximately $5 million and $10 million, respectively.

During the six months ended July 29, 2018, HDS executed a cash equity distribution of $94 million to Holdings, via HDS’s direct parent, HDS Holding Corporation. The equity distribution from HDS and return of capital recognized by Holdings were eliminated in consolidation of Holdings and its wholly-owned subsidiaries, including HDS.

On August 25, 2017, Holdings’ Board of Directors authorized the Company to enter into a share repurchase program for the repurchase of up to an aggregate amount of $500 million of Holdings’ common stock. During the six months ended July 29, 2018, under this plan, Holdings repurchased 2,298,643 shares of its common stock for approximately $88 million.

In combination with the 2014 authorized share repurchase plan (utilizing proceeds from employee stock option exercises), Holdings repurchased a total of 2,426,141 shares of its common stock during the six months ended July 29, 2018 for approximately $93 million.

Significant Non-Cash Transactions

Build-to-Suit Lease

In February 2016, the Company entered into a build-to-suit arrangement for a leadership development and headquarters facility in Atlanta, Georgia, which began construction in 2016. In accordance with ASC 840, “Leases,” for build-to-suit arrangements where the Company is involved in the construction of structural improvements prior to the commencement of the lease or takes some level of construction risk, the Company is considered the owner of the assets and land during the construction period. Accordingly, during construction activities, the Company recorded a Construction in progress asset within Property and equipment and a corresponding financing liability on the Consolidated Balance Sheet for construction costs incurred by the landlord.

The lease commenced in February 2018, with the leased asset and corresponding financing liability valued at $87 million each. In accordance with the sale and leaseback criteria of GAAP, the build-to-suit arrangement and subsequent lease failed to qualify as a sale. Therefore, the transaction is accounted for as a financing arrangement, whereby both the leased asset and the financing liability remain on the Company’s Consolidated Balance Sheet. The asset is depreciated as if the Company is the legal owner and rental payments are allocated between interest expense and principal repayment of the financing liability.

In April 2018, the Company exercised its option to purchase the leased asset in February 2019 for $87 million. As a result, the financing liability is classified as a Current liability within the Consolidated Balance Sheet.