SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION

9 Months Ended

Nov. 03, 2019

SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION

SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION

NOTE 10 — SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION

Receivables

Receivables as of November 3, 2019 and February 3, 2019 consisted of the following (amounts in millions):

	November 3, 2019		February 3, 2019
Trade receivables, net of allowance for doubtful accounts	$	779	$	657
Vendor rebate receivables		61		57
Other receivables		23		18
Total receivables, net	$	863	$	732

Other Current Liabilities

Other current liabilities as of November 3, 2019 and February 3, 2019 consisted of the following (amounts in millions):

	HD Supply Holdings, Inc.				HD Supply, Inc.
	November 3, 2019		February 3, 2019		November 3, 2019		February 3, 2019
Corporate headquarters financing liability(1)	$	—	$	87	$	—	$	87
Accrued legal		51		1		51		1
Accrued non-income taxes		42		35		42		35
Accrued interest		3		14		3		14
Unsettled share repurchases		4		2		—		—
Other		120		120		120		120
Total other current liabilities	$	220	$	259	$	216	$	257

(1) This amount represented the financing liability for the Company’s corporate headquarters that was purchased on February 4, 2019. Please see “Note 6 – Leases” for further information on the purchase of the Company’s corporate headquarters.

During the three months ended November 3, 2019, the Company recorded a $50 million legal accrual related to litigation activities, offset by the recognition of a $50 million insurance recovery included in Other current assets. For further information, see “Note 12 – Commitments and Contingencies.”

Supplemental Cash Flow Information

Cash paid for interest in the nine months ended November 3, 2019 and October 28, 2018 was $89 million and $103 million, respectively. During the nine months ended October 28, 2018, 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 nine months ended November 3, 2019 and October 28, 2018 was approximately $35 million and $9 million, respectively.

During the nine months ended November 3, 2019 and October 28, 2018, HDS executed equity cash distributions of $319 million and $172 million, respectively, 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.

Share Repurchases

During fiscal 2014, Holdings’ Board of Directors authorized a share repurchase program to be funded from cash proceeds received from exercises of employee stock options (“April 2014 Plan”). This share repurchase program does not obligate Holdings to acquire

any particular amount of common stock, and it may be terminated at any time at Holdings’ discretion. During August 2017 and November 2018, Holdings’ Board of Directors authorized two additional share repurchase programs for up to an aggregate amount of $500 million each of Holdings’ common stock (“August 2017 Plan” and “November 2018 Plan,” respectively). Holdings completed the repurchase of all $500 million of common stock authorized under the August 2017 Plan in December 2018.

Holdings’ share repurchases under these plans for the nine months ended November 3, 2019 and October 28, 2018 were as follows (dollars in millions):

	Nine Months Ended
	November 3, 2019			October 28, 2018
	Number of	Cost of		Number of	Cost of
	Shares	Shares		Shares	Shares
November 2018 Plan	8,161,079	$	316	—	$	—
August 2017 Plan	—		—	4,682,396		178
April 2014 Plan	158,734		7	165,537		7
Total share repurchases	8,319,813	$	323	4,847,933	$	185