NOTE 12—SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION

Receivables

Receivables as of February 3, 2019 and January 28, 2018 consisted of the following (amounts in millions):


	February 3,		January 28,
	2019		2018
Trade receivables, net of allowance for doubtful accounts	$	657	$	540
Vendor rebate receivables		57		58
Other receivables		18		14
Total receivables, net	$	732	$	612

Property and Equipment

Property and equipment as of February 3, 2019 and January 28, 2018 consisted of the following (amounts in millions):


	February 3,		January 28,
	2019		2018
Land	$	14	$	11
Buildings and improvements		296		195
Transportation equipment		66		62
Furniture, fixtures and equipment		269		226
Capitalized software		258		236
Construction in progress		55		123
Property and equipment		958		853
Less accumulated depreciation & amortization		(588)		(528)
Property and equipment, net	$	370	$	325

Corporate Headquarters

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 was 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 was 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 was depreciated as if the Company was the legal owner and rental payments were 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. As a result, the financing liability is classified as a Current liability within the Consolidated Balance Sheet. The Company completed the purchase of the building on February 4, 2019 for a total purchase price of $88 million.

Other Current Liabilities

Other current liabilities as of February 3, 2019 and January 28, 2018 consisted of the following (amounts in millions):


	HD Supply Holdings, Inc.				HD Supply, Inc.
	February 3,		January 28,		February 3,		January 28,
	2019		2018		2019		2018
Corporate headquarters financing liability	$	87	$	—	$	87	$	—
Accrued non-income taxes		35		27		35		27
Refund liability(1)		15		—		15		—
Accrued interest		14		21		14		21
Unsettled share repurchases		2		—		—		—
Other		106		90		106		90
Total other current liabilities	$	259	$	138	$	257	$	138

(1)

This amount represents the Company’s sales return estimate as of February 3, 2019 classified as a Current liability in 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 Receivables in the Consolidated Balance Sheet.

Supplemental Cash Flow Information

Cash paid for interest in fiscal 2018, fiscal 2017, and fiscal 2016 was approximately $121 million, $159 million, and $296 million, respectively. During fiscal 2018, fiscal 2017, and fiscal 2016, the Company paid $4 million, $6 million, and $7 million of original issue discounts related to the extinguishment of debt.

Cash paid for income taxes, net of refunds, in fiscal 2018, fiscal 2017, and fiscal 2016 was approximately $13 million, $29 million, and $13 million, respectively. Cash paid for income taxes in fiscal 2017 includes $13 million in taxes paid related to the sale of the Waterworks business.

During fiscal 2018 and fiscal 2017, HDS executed equity cash distributions of $590 million and $541 million, respectively, to Holdings, via HDS’s direct parent, HDS Holding Corporation. The equity distributions from HDS and returns 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. 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 fiscal 2017 and fiscal 2018, Holdings’ Board of Directors authorized three share repurchase programs, each up to an aggregate $500 million of Holdings’ common stock.

Holdings’ share repurchases under these plans were as follows (dollars in millions):


	Fiscal Year 2018			Fiscal Year 2017			Fiscal Year 2016
	Number of Shares	Cost of Shares		Number of Shares	Cost of Shares		Number of Shares	Cost of Shares
November 2018 Plan	3,313,797	$	125	—		—	—		—
August 2017 Plan	12,159,013		459	1,150,699	$	41	—		—
June 2017 Plan	—		—	15,940,337		500	—		—
April 2014 Plan	313,740		13	1,145,590		43	952,603	$	33
Total share repurchases	15,786,550	$	597	18,236,626	$	584	952,603	$	33