SEGMENT INFORMATION (Tables)

9 Months Ended

Nov. 03, 2019

SEGMENT INFORMATION

Schedule of net sales, Adjusted EBITDA, and other measures for each of the reportable segments and total continuing operations

The following tables present Net sales, Adjusted EBITDA, and other measures for both of the reportable segments and total operations for the periods indicated (amounts in millions):

							Total
	Facilities		Construction				Continuing
	Maintenance		& Industrial		Eliminations		Operations
Three Months Ended November 3, 2019
Net sales	$	826	$	818	$	—	$	1,644
Adjusted EBITDA		149		98		—		247
Depreciation(1) & Software Amortization		11		13		—		24
Other Intangible Amortization		2		3		—		5
Three Months Ended October 28, 2018
Net sales	$	810	$	803	$	(1)	$	1,612
Adjusted EBITDA		149		99		—		248
Depreciation(1) & Software Amortization		10		12		—		22
Other Intangible Amortization		2		3		—		5
Nine Months Ended November 3, 2019
Net sales	$	2,428	$	2,334	$	(1)	$	4,761
Adjusted EBITDA		432		262		—		694
Depreciation(1) & Software Amortization		32		34		—		66
Other Intangible Amortization		6		11		—		17
Nine Months Ended October 28, 2018
Net sales	$	2,353	$	2,250	$	(2)	$	4,601
Adjusted EBITDA		422		262		—		684
Depreciation(1) & Software Amortization		28		34		—		62
Other Intangible Amortization		6		10		—		16

(1) Depreciation includes amounts recorded within Cost of sales in the Consolidated Statements of Operations.

Schedule of reconciliation of adjusted EBITDA to income (loss) from continuing operations

	Three Months Ended				Nine Months Ended
	November 3, 2019		October 28, 2018		November 3, 2019		October 28, 2018
Total Adjusted EBITDA	$	247	$	248	$	694	$	684
Depreciation and amortization(1)		29		27		83		78
Stock-based compensation		6		7		18		19
Restructuring and separation(2)		4		—		2		9
Acquisition and integration costs(3)		4		2		5		5
Other		(1)		(1)		—		(2)
Operating income		205		213		586		575
Interest expense		27		32		83		101
Interest (income)		—		—		—		(1)
Loss on extinguishment & modification of debt(4)		—		69		—		69
Income from Continuing Operations Before Provision for Income Taxes		178		112		503		406
Provision for income taxes		47		30		130		105
Income from continuing operations		131		82		373		301
Income from discontinued operations, net of tax		1		—		1		1
Net income	$	132	$	82	$	374	$	302

(1) Depreciation and amortization includes amounts recorded within Cost of sales in the Consolidated Statements of Operations.

(2) Represents the costs related to separation activities and personnel changes, primarily severance and other employee-related costs. During the nine months ended November 3, 2019, the costs include a favorable termination of the lease for the Company’s former corporate headquarters.

(3) Represents the cost incurred in the acquisition and integration of business acquisitions, including A.H. Harris Construction Supplies.

(4) Represents the loss on extinguishment of debt including premium paid to repurchase or call the debt as well as the write-off of unamortized deferred financing costs, original issue discount, and other assets or liabilities associated with such debt. Also includes the costs of debt modifications.