Acquisitions (Tables)

3 Months Ended

May 01, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of allocation of transaction price to the fair value of identifiable assets acquired and liabilities assumed

The following table represents the allocation of the transaction price to the fair value of identifiable assets acquired and liabilities assumed in the acquisitions during fiscal 2021. Preliminary values of the fiscal 2021 acquisitions are not yet finalized pending the final purchase price allocations and are subject to change once additional information is obtained.

	L&M Acquisition		Pacific Pipe Acquisition
Cash	$	—	$	2
Accounts receivable	7		10
Inventories	16		17
Intangible assets	19		47
Goodwill	18		41
Operating lease right-of-use assets	2		17
Other assets, current and non-current	5		6
Total assets acquired	67		140
Accounts payable	3		5
Deferred income taxes	—		12
Operating lease liabilities	2		17
Net assets acquired	$	62	$	106

Schedule of reconciliation of total consideration to net assets acquired

The following reconciles the total consideration to net assets acquired:

	L&M Acquisition		Pacific Pipe Acquisition
Total consideration, net of cash	$	62	$	104
Plus: Cash acquired in acquisition	—		2
Net assets acquired; investing cash outflow	$	62	$	106

Schedule of pro forma information

The following pro forma information has been prepared for comparative purposes only and is not necessarily indicative of the results of operations as they would have been had the Pacific Pipe and L&M acquisitions occurred on the assumed dates, nor is it necessarily an indication of future operating results. In addition, the pro forma information does not reflect the cost of any integration activities, benefits from any synergies that may be derived from the Pacific Pipe and L&M acquisitions or revenue growth that may be anticipated.

	Three Months Ended
	May 2, 2021
Net sales	$	1,089
Net income	29

Schedule of intangible assets acquired and assumptions utilized in the valuation

A summary of the intangible assets acquired and assumptions utilized in the valuation for the Pacific Pipe and L&M acquisitions are as follows:

	Intangible Asset Amount		Amortization Period	Discount Rate		Attrition Rate
L&M Acquisition
Customer relationships	$	19	10 years	15.5	%	15.0	%
Pacific Pipe Acquisition
Customer relationships	$	46	10 years	11.5	%	10.0	%
Trademark	1		2 years	11.5	%	N/A