SUBSEQUENT EVENTS

6 Months Ended

Aug. 02, 2020

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 14 — SUBSEQUENT EVENT

On August 10, 2020, the Company entered into a definitive agreement to sell its Construction & Industrial business to an affiliate of Clayton, Dubilier & Rice. The purchase price of $2.9 billion is payable in cash at closing and may be adjusted for certain purchase price adjustments, as defined in the Transaction Agreement. The Company expects to receive approximately $2.5 billion of net proceeds after taxes and transaction costs. The transaction is expected to close in the third quarter of fiscal 2020 subject to customary regulatory approvals. The Company expects to record an approximately $1.75 billion pre-tax gain on sale, net of transaction costs, upon closing.

As of August 2, 2020 and February 2, 2020, the carrying amounts of major classes of assets and liabilities of the Construction & Industrial business were as follows (amounts in millions):

	August 2, 2020		February 2, 2020
Assets:
Receivables, less allowance for credit losses of $12 and $12	$	406	$	393
Inventories		373		344
Property and equipment, net		112		120
Goodwill and intangible assets, net		486		492
Operating lease right-of-use assets		217		243
Liabilities:
Accounts payable	$	250	$	195
Current lease liabilities		65		58
Other current liabilities		60		54
Long-term lease liabilities		158		188

In accordance with ASC 205-20, “Discontinued Operations,” the Company will reflect the Construction & Industrial business as a discontinued operation in its financial statements beginning in the third quarter of fiscal 2020.