HELD FOR SALE AND DISPOSAL OF BUSINESS

12 Months Ended

Feb. 02, 2019

HELD FOR SALE AND DISPOSAL OF BUSINESS

HELD FOR SALE AND DISPOSAL OF BUSINESS

17.HELD FOR SALE AND DISPOSAL OF BUSINESS

During the second quarter of 2018, the Company announced that as a result of a review of its assets, the Company has decided to explore strategic alternatives for its Turkey Hill Dairy business, including a potential sale.  Additionally during the fourth quarter of 2018, the Company announced that it had entered into a definitive agreement to sell its You Technology business.

The following table presents information related to the major classes of assets and liabilities of all business that were classified as assets and liabilities held for sale in the Consolidated Balance Sheet as of February 2, 2019 and February 3, 2018:

	February 2,		February 3,
(In millions)	2019		2018
Assets held for sale:
Cash and temporary cash investments	$	1	$	1
Store deposits in transit		-		15
Receivables		64		49
FIFO inventory		21		95
LIFO reserve		(1)		(36)
Prepaid and other current assets		3		13
Property, plant and equipment, net		77		441
Intangibles, net		-		11
Goodwill		1		14
Other assets		-		1
Total assets held for sale	$	166	$	604
Liabilities held for sale:
Trade accounts payable	$	26	$	119
Accrued salaries and wages		8		14
Other current liabilities		17		85
Other long-term liabilities		-		41
Total liabilities held for sale	$	51	$	259

Subsequent to February 2, 2019, the Company completed the sale of its You Technology business unit and announced a definitive agreement for its Turkey Hill Dairy business unit.  The businesses classified as held for sale will not be reported as discontinued operations as the dispositions do not represent a strategic shift that will have a major effect on the Company’s operations and financial results.

As of February 3, 2018, certain assets and liabilities, primarily those related to the Company’s convenience store business, were classified as held for sale in the Consolidated Balance Sheet.  On April 20,2018, the Company completed the sale of its convenience store business unit for $2,169.  The Company recognized a net gain on this sale for $1,782,  $1,360 net of tax, in 2018.