Company Quick10K Filing
Quick10K
HD Supply Holdings
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$37.83 171 $6,463
10-Q 2019-08-04 Quarter: 2019-08-04
10-Q 2019-05-05 Quarter: 2019-05-05
10-K 2019-02-03 Annual: 2019-02-03
10-Q 2018-10-28 Quarter: 2018-10-28
10-Q 2018-07-29 Quarter: 2018-07-29
10-Q 2018-04-29 Quarter: 2018-04-29
10-K 2018-01-28 Annual: 2018-01-28
10-Q 2017-10-29 Quarter: 2017-10-29
10-Q 2017-07-30 Quarter: 2017-07-30
10-Q 2017-04-30 Quarter: 2017-04-30
10-K 2017-01-29 Annual: 2017-01-29
10-Q 2016-10-30 Quarter: 2016-10-30
10-Q 2016-07-31 Quarter: 2016-07-31
10-Q 2016-05-01 Quarter: 2016-05-01
10-K 2016-01-31 Annual: 2016-01-31
10-Q 2015-11-01 Quarter: 2015-11-01
10-Q 2015-08-02 Quarter: 2015-08-02
10-Q 2015-05-03 Quarter: 2015-05-03
10-K 2015-02-01 Annual: 2015-02-01
10-Q 2014-11-02 Quarter: 2014-11-02
10-Q 2014-08-03 Quarter: 2014-08-03
10-Q 2014-05-04 Quarter: 2014-05-04
10-K 2014-02-02 Annual: 2014-02-02
8-K 2019-09-25 Regulation FD, Exhibits
8-K 2019-09-24 Regulation FD, Exhibits
8-K 2019-09-10 Earnings, Regulation FD, Exhibits
8-K 2019-07-23 Regulation FD, Exhibits
8-K 2019-06-11 Earnings, Regulation FD, Exhibits
8-K 2019-05-21 Officers, Shareholder Vote, Exhibits
8-K 2019-03-19 Earnings, Regulation FD, Exhibits
8-K 2018-12-04 Earnings, Regulation FD, Exhibits
8-K 2018-10-22 Enter Agreement
8-K 2018-10-11 Enter Agreement, Leave Agreement, Off-BS Arrangement
8-K 2018-10-01 Other Events, Exhibits
8-K 2018-10-01 Other Events, Exhibits
8-K 2018-09-06 Officers
8-K 2018-09-05 Earnings, Regulation FD, Exhibits
8-K 2018-06-21 Regulation FD, Exhibits
8-K 2018-06-05 Earnings, Regulation FD, Exhibits
8-K 2018-05-17 Shareholder Vote
8-K 2018-04-18 Officers
8-K 2018-03-05 Other Events, Exhibits
8-K 2017-12-28 Other Events, Exhibits
GWW Grainger W W 14,829
NCR NCR 3,772
MLHR Miller Herman 2,464
SCS Steelcase 1,824
HNI HNI 1,321
KNL Knoll 1,125
PBI Pitney Bowes 633
PAR Par Technology 371
AEY Addvantage Technologies Group 19
USAT USA Technologies 0
HDS 2019-08-04
Part I. Financial Information
Item 1. Financial Statements
Note 1 - Nature of Business and Basis of Presentation
Note 2 - Acquisitions
Note 3 - Debt
Note 4 - Derivative Instruments
Note 5 - Fair Value Measurements
Note 6 - Leases
Note 7 - Income Taxes
Note 8 - Accumulated Other Comprehensive Income (Loss)
Note 9 - Basic and Diluted Weighted-Average Common Shares
Note 10 - Supplemental Balance Sheet and Cash Flow Information
Note 11 - Commitments and Contingencies
Note 12 - Segment Information
Note 13 - Revenue
Note 14 - Recent Accounting Pronouncements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-21.1 hds-20190804ex211a483b2.htm
EX-31.1 hds-20190804ex311bad1b3.htm
EX-31.2 hds-20190804ex312b84ac5.htm
EX-31.3 hds-20190804ex31362302a.htm
EX-31.4 hds-20190804ex314881bbb.htm
EX-32.1 hds-20190804ex321df2e87.htm
EX-32.2 hds-20190804ex3221b51fd.htm
EX-32.3 hds-20190804ex323bbf151.htm
EX-32.4 hds-20190804ex324a38957.htm

HD Supply Holdings Earnings 2019-08-04

HDS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

false--02-02Q220200001573097000146526410001000170700000169100000870000000001573097us-gaap:CommonStockMember2018-11-300001573097us-gaap:CommonStockMember2017-08-310001573097hds:ShareRepurchaseProgramOfNovember2018Memberus-gaap:CommonStockMember2019-02-042019-08-040001573097hds:ShareRepurchaseProgramOfApril2014Memberus-gaap:CommonStockMember2019-02-042019-08-040001573097hds:ShareRepurchaseProgramOfAugust2017Memberus-gaap:CommonStockMember2018-01-292018-07-290001573097hds:ShareRepurchaseProgramOfApril2014Memberus-gaap:CommonStockMember2018-01-292018-07-290001573097us-gaap:CommonStockMember2018-01-292018-07-290001573097us-gaap:CommonStockMember2019-05-062019-08-040001573097us-gaap:CommonStockMember2019-02-042019-08-040001573097us-gaap:CommonStockMember2018-04-302018-07-290001573097us-gaap:CommonStockMember2018-01-292018-07-290001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2019-08-040001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2019-08-040001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-08-040001573097us-gaap:RetainedEarningsMember2019-08-040001573097us-gaap:AdditionalPaidInCapitalMember2019-08-040001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-08-040001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2019-05-050001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2019-05-050001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-05-050001573097us-gaap:RetainedEarningsMember2019-05-050001573097us-gaap:AdditionalPaidInCapitalMember2019-05-050001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-05-050001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2019-02-030001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2019-02-030001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-02-030001573097us-gaap:RetainedEarningsMember2019-02-030001573097us-gaap:AdditionalPaidInCapitalMember2019-02-030001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-02-030001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2018-07-290001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2018-07-290001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-290001573097us-gaap:RetainedEarningsMember2018-07-290001573097us-gaap:AdditionalPaidInCapitalMember2018-07-290001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-290001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2018-04-290001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2018-04-290001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-290001573097us-gaap:RetainedEarningsMember2018-04-290001573097us-gaap:AdditionalPaidInCapitalMember2018-04-290001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-290001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2018-01-280001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2018-01-280001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-280001573097us-gaap:RetainedEarningsMember2018-01-280001573097us-gaap:AdditionalPaidInCapitalMember2018-01-280001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-280001573097hds:HDSupplyIncMemberus-gaap:CommonStockMember2019-08-040001573097us-gaap:TreasuryStockMember2019-08-040001573097us-gaap:CommonStockMember2019-08-040001573097hds:HDSupplyIncMemberus-gaap:CommonStockMember2019-05-050001573097us-gaap:TreasuryStockMember2019-05-050001573097us-gaap:CommonStockMember2019-05-050001573097hds:HDSupplyIncMemberus-gaap:CommonStockMember2019-02-030001573097us-gaap:TreasuryStockMember2019-02-030001573097us-gaap:CommonStockMember2019-02-030001573097hds:HDSupplyIncMemberus-gaap:CommonStockMember2018-07-290001573097us-gaap:TreasuryStockMember2018-07-290001573097us-gaap:CommonStockMember2018-07-290001573097hds:HDSupplyIncMemberus-gaap:CommonStockMember2018-04-290001573097us-gaap:TreasuryStockMember2018-04-290001573097us-gaap:CommonStockMember2018-04-290001573097hds:HDSupplyIncMemberus-gaap:CommonStockMember2018-01-280001573097us-gaap:TreasuryStockMember2018-01-280001573097us-gaap:CommonStockMember2018-01-280001573097us-gaap:IntersegmentEliminationMember2019-05-062019-08-040001573097us-gaap:IntersegmentEliminationMember2019-02-042019-08-040001573097us-gaap:IntersegmentEliminationMember2018-04-302018-07-290001573097us-gaap:IntersegmentEliminationMember2018-01-292018-07-290001573097hds:ResidentialMemberhds:ConstructionAndIndustrialMember2019-05-062019-08-040001573097hds:PropertyImprovementMemberhds:FacilitiesMaintenanceMember2019-05-062019-08-040001573097hds:OtherConstructionAndIndustrialMemberhds:ConstructionAndIndustrialMember2019-05-062019-08-040001573097hds:NonResidentialMemberhds:ConstructionAndIndustrialMember2019-05-062019-08-040001573097hds:MaintenanceRepairAndOperationsMemberhds:FacilitiesMaintenanceMember2019-05-062019-08-040001573097us-gaap:IntersubsegmentEliminationsMember2019-05-062019-08-040001573097hds:FacilitiesMaintenanceMember2019-05-062019-08-040001573097hds:ConstructionAndIndustrialMember2019-05-062019-08-040001573097hds:ResidentialMemberhds:ConstructionAndIndustrialMember2019-02-042019-08-040001573097hds:PropertyImprovementMemberhds:FacilitiesMaintenanceMember2019-02-042019-08-040001573097hds:OtherConstructionAndIndustrialMemberhds:ConstructionAndIndustrialMember2019-02-042019-08-040001573097hds:NonResidentialMemberhds:ConstructionAndIndustrialMember2019-02-042019-08-040001573097hds:MaintenanceRepairAndOperationsMemberhds:FacilitiesMaintenanceMember2019-02-042019-08-040001573097us-gaap:IntersubsegmentEliminationsMember2019-02-042019-08-040001573097hds:FacilitiesMaintenanceMember2019-02-042019-08-040001573097hds:ConstructionAndIndustrialMember2019-02-042019-08-040001573097hds:ResidentialMemberhds:ConstructionAndIndustrialMember2018-04-302018-07-290001573097hds:PropertyImprovementMemberhds:FacilitiesMaintenanceMember2018-04-302018-07-290001573097hds:OtherConstructionAndIndustrialMemberhds:ConstructionAndIndustrialMember2018-04-302018-07-290001573097hds:NonResidentialMemberhds:ConstructionAndIndustrialMember2018-04-302018-07-290001573097hds:MaintenanceRepairAndOperationsMemberhds:FacilitiesMaintenanceMember2018-04-302018-07-290001573097us-gaap:IntersubsegmentEliminationsMember2018-04-302018-07-290001573097hds:FacilitiesMaintenanceMember2018-04-302018-07-290001573097hds:ConstructionAndIndustrialMember2018-04-302018-07-290001573097hds:ResidentialMemberhds:ConstructionAndIndustrialMember2018-01-292018-07-290001573097hds:PropertyImprovementMemberhds:FacilitiesMaintenanceMember2018-01-292018-07-290001573097hds:OtherConstructionAndIndustrialMemberhds:ConstructionAndIndustrialMember2018-01-292018-07-290001573097hds:NonResidentialMemberhds:ConstructionAndIndustrialMember2018-01-292018-07-290001573097hds:MaintenanceRepairAndOperationsMemberhds:FacilitiesMaintenanceMember2018-01-292018-07-290001573097us-gaap:IntersubsegmentEliminationsMember2018-01-292018-07-290001573097hds:FacilitiesMaintenanceMember2018-01-292018-07-290001573097hds:ConstructionAndIndustrialMember2018-01-292018-07-290001573097us-gaap:BuildingMember2019-02-042019-02-040001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-05-062019-08-040001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-05-062019-08-040001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-02-042019-08-040001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-02-042019-08-040001573097us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-05-062019-08-040001573097us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-02-042019-08-040001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-04-302018-07-290001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-01-292018-07-290001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-302018-07-290001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-302018-07-290001573097hds:HDSupplyIncMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-292018-07-290001573097us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-292018-07-290001573097us-gaap:AccountingStandardsUpdate201602Member2019-08-040001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2019-05-062019-08-040001573097us-gaap:RetainedEarningsMember2019-05-062019-08-040001573097srt:MinimumMember2019-08-040001573097srt:MaximumMember2019-08-0400015730972018-01-292019-02-0300015730972017-01-302018-01-2800015730972016-02-012017-01-290001573097srt:MinimumMember2019-02-042019-08-040001573097srt:MaximumMember2019-02-042019-08-040001573097hds:A.h.HarrisMemberus-gaap:TradeNamesMember2018-03-052018-03-050001573097hds:A.h.HarrisMemberus-gaap:CustomerRelationshipsMember2018-03-052018-03-050001573097us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2019-08-040001573097us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2019-02-0300015730972018-02-280001573097us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-10-240001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberhds:DebtInstrumentRedemptionPeriodPriorToOctober152021Memberus-gaap:UnsecuredDebtMember2019-02-042019-08-040001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberhds:DebtInstrumentRedemptionPeriodOctober2023AndThereafterMemberus-gaap:UnsecuredDebtMember2019-02-042019-08-040001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberhds:DebtInstrumentRedemptionPeriodOctober2022Memberus-gaap:UnsecuredDebtMember2019-02-042019-08-040001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberhds:DebtInstrumentRedemptionPeriodOctober2021Memberus-gaap:UnsecuredDebtMember2019-02-042019-08-040001573097hds:TermLoanFacilityDue2023B5LoansMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-10-240001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:SeniorSecuredTermLoanFacilityMemberus-gaap:SecuredDebtMember2019-08-040001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:AssetBasedLendingFacilityMemberus-gaap:SecuredDebtMember2019-08-040001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberus-gaap:UnsecuredDebtMember2018-10-110001573097srt:SubsidiaryIssuerMembercountry:CAus-gaap:LineOfCreditMemberhds:AssetBasedLendingFacilityMemberus-gaap:SecuredDebtMember2019-08-040001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:AssetBasedLendingFacilityDue2022Memberus-gaap:SecuredDebtMember2019-08-040001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberus-gaap:UnsecuredDebtMember2019-08-040001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:TermLoanFacilityDue2023B5LoansMemberus-gaap:SecuredDebtMember2019-02-030001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:AssetBasedLendingFacilityDue2022Memberus-gaap:SecuredDebtMember2019-02-030001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberus-gaap:UnsecuredDebtMember2019-02-030001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:TermLoanFacilityDue2023B5LoansMemberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-02-042019-08-040001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:TermLoanFacilityDue2023B5LoansMemberus-gaap:SecuredDebtMemberus-gaap:BaseRateMember2019-02-042019-08-040001573097hds:TermLoanFacilityDue2023B5LoansMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-10-232018-10-230001573097us-gaap:AccountingStandardsUpdate201602Member2019-02-042019-08-040001573097hds:HDSupplyIncMember2019-05-062019-08-040001573097hds:HDSupplyIncMember2018-04-302018-07-290001573097us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-08-040001573097us-gaap:OtherCurrentLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-08-040001573097us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-08-040001573097hds:HDSupplyIncMember2018-07-2900015730972018-07-290001573097hds:HDSupplyIncMember2018-01-2800015730972018-01-280001573097hds:A.h.HarrisMemberus-gaap:TradeNamesMember2018-03-050001573097hds:A.h.HarrisMemberus-gaap:CustomerRelationshipsMember2018-03-050001573097hds:A.h.HarrisMember2018-03-052018-03-050001573097us-gaap:AdditionalPaidInCapitalMember2019-05-062019-08-040001573097us-gaap:AdditionalPaidInCapitalMember2019-02-042019-08-040001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2019-02-042019-08-040001573097us-gaap:RetainedEarningsMember2019-02-042019-08-040001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2018-04-302018-07-290001573097us-gaap:RetainedEarningsMember2018-04-302018-07-290001573097us-gaap:AdditionalPaidInCapitalMember2018-04-302018-07-290001573097hds:HDSupplyIncMemberus-gaap:RetainedEarningsMember2018-01-292018-07-290001573097us-gaap:RetainedEarningsMember2018-01-292018-07-290001573097us-gaap:AdditionalPaidInCapitalMember2018-01-292018-07-290001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2019-05-062019-08-040001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2019-02-042019-08-040001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2018-04-302018-07-290001573097hds:HDSupplyIncMemberus-gaap:AdditionalPaidInCapitalMember2018-01-292018-07-290001573097us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-08-040001573097us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-08-040001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-08-040001573097us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-05-050001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-05-050001573097us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-02-030001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-02-030001573097us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2018-07-290001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-07-290001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-04-290001573097us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-01-280001573097hds:HDSupplyIncMember2019-08-040001573097hds:HDSupplyIncMember2019-02-030001573097us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-08-040001573097us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-08-040001573097us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-02-030001573097us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-02-030001573097us-gaap:TreasuryStockMember2019-05-062019-08-040001573097us-gaap:TreasuryStockMember2018-04-302018-07-290001573097us-gaap:TreasuryStockMember2019-02-042019-08-040001573097us-gaap:TreasuryStockMember2018-01-292018-07-2900015730972017-08-080001573097hds:SeniorUnsecuredNotes5.375Due2026Memberhds:DebtInstrumentRedemptionPeriodPriorToOctober152021Memberus-gaap:UnsecuredDebtMember2019-08-040001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:TermLoanFacilityDue2023B5LoansMemberus-gaap:SecuredDebtMember2019-08-0400015730972019-02-030001573097us-gaap:CommonStockMember2019-02-042019-08-0400015730972019-08-040001573097hds:UnitedStatesAndCanadaMember2019-02-042019-08-040001573097hds:HDSupplyIncMember2019-02-042019-08-040001573097hds:HDSupplyIncMember2018-01-292018-07-290001573097srt:SubsidiaryIssuerMemberus-gaap:LineOfCreditMemberhds:AssetBasedLendingFacilityMemberus-gaap:SecuredDebtMember2019-02-042019-08-040001573097hds:SeniorUnsecuredNotes5.375Due2026Member2019-02-042019-08-040001573097srt:SubsidiaryIssuerMemberhds:SeniorUnsecuredNotes5.375Due2026Memberhds:DebtInstrumentRedemptionPeriodPriorToOctober152021Memberus-gaap:UnsecuredDebtMember2019-08-040001573097hds:A.h.HarrisMember2019-05-062019-08-040001573097hds:A.h.HarrisMember2018-03-050001573097us-gaap:OperatingSegmentsMemberhds:FacilitiesMaintenanceMember2019-05-062019-08-040001573097us-gaap:OperatingSegmentsMemberhds:ConstructionAndIndustrialMember2019-05-062019-08-0400015730972019-05-062019-08-040001573097us-gaap:OperatingSegmentsMemberhds:FacilitiesMaintenanceMember2019-02-042019-08-040001573097us-gaap:OperatingSegmentsMemberhds:ConstructionAndIndustrialMember2019-02-042019-08-040001573097us-gaap:OperatingSegmentsMemberhds:FacilitiesMaintenanceMember2018-04-302018-07-290001573097us-gaap:OperatingSegmentsMemberhds:ConstructionAndIndustrialMember2018-04-302018-07-2900015730972018-04-302018-07-290001573097us-gaap:OperatingSegmentsMemberhds:FacilitiesMaintenanceMember2018-01-292018-07-290001573097us-gaap:OperatingSegmentsMemberhds:ConstructionAndIndustrialMember2018-01-292018-07-2900015730972018-01-292018-07-290001573097hds:HDSupplyIncMember2019-08-040001573097hds:HDSupplyHoldingsIncMember2019-08-040001573097hds:HDSupplyIncMember2019-02-042019-08-0400015730972019-02-042019-08-04hds:complaintiso4217:USDxbrli:shareshds:segmentxbrli:sharesiso4217:USDxbrli:purehds:facilityhds:employeehds:itemhds:customerhds:categoryhds:product

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 4, 2019

- OR -

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to          

Commission File
Number

    

Exact name of Registrant as specified in its
charter, Address of principal executive offices
and Telephone number

    

State of incorporation

    

I.R.S. Employer
Identification Number

001-35979

HD SUPPLY HOLDINGS, INC.
3400 Cumberland Boulevard SE
Atlanta, Georgia 30339
(
770852-9000

Delaware

26-0486780

333-159809

HD SUPPLY, INC.
3400 Cumberland Boulevard SE
Atlanta, Georgia 30339
(770852-9000

Delaware

75-2007383

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class

   

Trading Symbol

   

Name of Each Exchange on Which Registered

HD Supply Holdings, Inc. common stock, par value $0.01 per share

HDS

The NASDAQ Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

HD Supply Holdings, Inc.

    

Yes No

HD Supply, Inc.

Yes No

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

HD Supply Holdings, Inc.

    

Yes No

HD Supply, Inc.

Yes No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

HD Supply Holdings, Inc.

    

    

    

Large accelerated filer

Accelerated filer

Smaller reporting company

Non-accelerated filer

Emerging growth company

HD Supply, Inc.

    

    

    

Large accelerated filer

Accelerated filer

Smaller reporting company

Non-accelerated filer

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

HD Supply Holdings, Inc.

HD Supply, Inc.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

HD Supply Holdings, Inc.

    

Yes No

HD Supply, Inc.

Yes No

The number of shares of the Registrant’s common stock outstanding as of September 6, 2019:

HD Supply Holdings, Inc.

165,881,892 shares of common stock, par value $0.01 per share

HD Supply, Inc.

1,000 shares of common stock, par value $0.01 per share, all of which were owned by HDS Holding Corporation, a wholly-owned subsidiary of HD Supply Holdings, Inc.

Table of Contents

INDEX TO FORM 10-Q

Page

Explanatory Note

3

Forward-looking statements and information

3

Part I.

Financial Information

Item 1.

Financial Statements

HD Supply Holdings, Inc.

Consolidated Statements of Operations and Comprehensive Income for the Three and Six Months ended August 4, 2019 and July 29, 2018 (unaudited)

5

Consolidated Balance Sheets as of August 4, 2019 and February 3, 2019 (unaudited)

6

Consolidated Statements of Cash Flows for the Six Months ended August 4, 2019 and July 29, 2018 (unaudited)

7

Consolidated Statements of Stockholders’ Equity for the Three and Six Months ended August 4, 2019 and July 29, 2018 (unaudited)

8

HD Supply, Inc.

Consolidated Statements of Operations and Comprehensive Income for the Three and Six Months ended August 4, 2019 and July 29, 2018 (unaudited)

9

Consolidated Balance Sheets as of August 4, 2019 and February 3, 2019 (unaudited)

10

Consolidated Statements of Cash Flows for the Six Months ended August 4, 2019 and July 29, 2018 (unaudited)

11

Consolidated Statements of Stockholder’s Equity for the Three and Six Months ended August 4, 2019 and July 29, 2018 (unaudited)

12

Notes to Consolidated Financial Statements (unaudited)

13

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

44

Item 4.

Controls and Procedures

44

Part II.

Other Information

Item 1.

Legal Proceedings

44

Item 1A.

Risk Factors

46

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

46

Item 6.

Exhibits

47

Signatures

48

2

Table of Contents

EXPLANATORY NOTE

This Form 10-Q is a combined quarterly report being filed separately by two registrants: HD Supply Holdings, Inc. and HD Supply, Inc.  Unless the context indicates otherwise, any reference in this report to “Holdings” refers to HD Supply Holdings, Inc., any reference to “HDS” refers to HD Supply, Inc., the indirect wholly-owned subsidiary of Holdings, and any references to “HD Supply,” the “Company,” “we,” “us” and “our” refer to HD Supply Holdings, Inc. together with its direct and indirect subsidiaries, including HDS.  Each registrant hereto is filing on its own behalf all of the information contained in this quarterly report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

FORWARD-LOOKING STATEMENTS AND INFORMATION

This quarterly report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “should,” “could,” “seeks,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth strategies and the industries in which we operate.

Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this report. In addition, even if our results of operations, financial condition and liquidity, and the development of the industries in which we operate are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors could cause actual results to differ materially from those contained in or implied by the forward-looking statements; including those factors discussed in Item 1A, Risk Factors in our annual report on Form 10-K for the fiscal year ended February 3, 2019 and those described from time to time in our other filings with the U.S. Securities and Exchange Commission (the “SEC”). Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations, financial condition and liquidity, and the development of the industries in which we operate include:

inherent risks of the maintenance, repair and operations market and the non-residential and residential construction markets;
our ability to maintain profitability;
our ability to service our debt and to refinance all or a portion of our indebtedness;
limitations and restrictions in the agreements governing our indebtedness;
the competitive environment in which we operate and demand for our products and services in highly competitive and fragmented industries;
the loss of any of our significant customers;
competitive pricing pressure from our customers;
our ability to identify and acquire suitable acquisition candidates on favorable terms;
cyclicality and seasonality of the maintenance, repair and operations market and the non-residential and residential construction markets;

3

Table of Contents

our ability to identify and develop relationships with a sufficient number of qualified suppliers to maintain our supply chains;
our ability to manage fixed costs;
the development of alternatives to distributors in the supply chain;
our ability to manage our working capital through product purchasing and customer credit policies;
interruptions in the proper functioning of our information technology, or “IT” systems, including from cybersecurity threats;
potential material liabilities under our self-insured programs;
our ability to attract, train and retain highly-qualified associates and key personnel;
new and/or proposed trade policies could make sourcing product from foreign countries more difficult and more costly;
limitations on our income tax net operating loss carryforwards in the event of an ownership change; and
our ability to identify and integrate new products.

You should read this report completely and with the understanding that actual future results may be materially different from expectations. These cautionary statements qualify all forward-looking statements made in this report. These forward-looking statements are made only as of the date of this report and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, changes in future operating results over time or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

4

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HD SUPPLY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

Amounts in millions, except share and per share data, unaudited

Three Months Ended

Six Months Ended

    

August 4, 2019

    

July 29, 2018

    

August 4, 2019

    

July 29, 2018

Net Sales

$

1,624

$

1,600

$

3,117

$

2,989

Cost of sales

991

 

978

1,899

 

1,815

Gross Profit

633

 

622

1,218

 

1,174

Operating expenses:

Selling, general and administrative

396

 

384

788

 

756

Depreciation and amortization

26

 

25

51

 

47

Restructuring

 

2

(2)

 

9

Total operating expenses

422

 

411

837

 

812

Operating Income

211

 

211

381

 

362

Interest expense

28

 

35

56

 

69

Interest (income)

(1)

Income from Continuing Operations Before Provision for Income Taxes

183

176

325

294

Provision for income taxes

48

 

46

83

 

75

Income from Continuing Operations

$

135

$

130

$

242

$

219

Income from discontinued operations, net of tax

 

1

1

Net Income

$

135

$

131

$

242

$

220

Other comprehensive income (loss):

Foreign currency translation adjustment

 

1

 

2

Unrealized loss on cash flow hedge, net of tax of $5, $-, $7, and $-

(16)

(21)

Total Comprehensive Income

$

119

$

132

$

221

$

222

Weighted Average Common Shares Outstanding (thousands)

Basic

169,546

 

182,992

169,773

 

183,659

Diluted

170,057

183,822

170,386

184,456

Basic Earnings Per Share(1):

Income from Continuing Operations

$

0.80

$

0.71

$

1.43

$

1.19

Income from Discontinued Operations

$

$

0.01

$

$

0.01

Net Income

$

0.80

$

0.72

$

1.43

$

1.20

Diluted Earnings Per Share(1):

Income from Continuing Operations

$

0.79

$

0.71

$

1.42

$

1.19

Income from Discontinued Operations

$

$

0.01

$

$

0.01

Net Income

$

0.79

$

0.71

$

1.42

$

1.19

(1)May not foot due to rounding.

The accompanying notes are an integral part of these consolidated financial statements.

5

Table of Contents

HD SUPPLY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

Amounts in millions, except share and per share data, unaudited

    

August 4, 2019

    

February 3, 2019

ASSETS

Current assets:

Cash and cash equivalents

$

41

$

38

Receivables, less allowance for doubtful accounts of $19 and $18

 

860

 

732

Inventories

 

821

 

766

Other current assets

 

41

 

50

Total current assets

 

1,763

 

1,586

Property and equipment, net

 

385

 

370

Operating lease right-of-use assets

412

Goodwill

 

1,989

 

1,990

Intangible assets, net

 

179

 

191

Deferred tax asset

12

78

Other assets

 

16

 

18

Total assets

$

4,756

$

4,233

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

498

$

367

Accrued compensation and benefits

 

70

 

109

Current installments of long-term debt

 

11

 

11

Current lease liabilities

114

Other current liabilities

 

165

 

259

Total current liabilities

 

858

 

746

Long-term debt, excluding current installments

 

2,062

 

2,129

Long-term lease liabilities

310

Other liabilities

 

95

 

77

Total liabilities

 

3,325

 

2,952

Stockholders’ equity:

Common stock, par value $0.01; 1 billion shares authorized; 169.1 million and 170.7 million shares issued and outstanding at August 4, 2019 and February 3, 2019, respectively

 

2

 

2

Paid-in capital

 

4,086

 

4,067

Accumulated deficit

 

(1,332)

 

(1,572)

Accumulated other comprehensive loss

 

(51)

 

(30)

Treasury stock, at cost, 36.3 and 34.2 million shares at August 4, 2019 and February 3, 2019, respectively

(1,274)

(1,186)

Total stockholders’ equity

 

1,431

 

1,281

Total liabilities and stockholders’ equity

$

4,756

$

4,233

The accompanying notes are an integral part of these consolidated financial statements.

6

Table of Contents

HD SUPPLY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Amounts in millions, unaudited

Six Months Ended

    

August 4, 2019

    

July 29, 2018

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

242

$

220

Reconciliation of net income to net cash provided by (used in) operating activities:

Depreciation and amortization

54

 

51

Provision for uncollectibles

5

 

6

Non-cash interest expense

3

 

11

Stock-based compensation expense

12

 

12

Deferred income taxes

75

 

70

Other

1

 

(1)

Changes in assets and liabilities, net of the effects of acquisitions & dispositions:

(Increase) decrease in receivables

(133)

 

(183)

(Increase) decrease in inventories

(56)

 

(104)

(Increase) decrease in other current assets

(2)

 

(5)

Increase (decrease) in accounts payable and accrued liabilities

85

 

108

Increase (decrease) in other long-term liabilities

 

1

Net cash provided by (used in) operating activities

286

 

186

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(54)

 

(47)

Proceeds from sales of property and equipment

2

Payments for businesses acquired, net of cash acquired

3

(362)

Net cash provided by (used in) investing activities

(49)

 

(409)

CASH FLOWS FROM FINANCING ACTIVITIES:

Purchase of treasury shares

(78)

(93)

Repayments of long-term debt

(5)

 

(5)

Repayments of financing liabilities

(88)

Borrowings on long-term revolver debt

578

 

10

Repayments on long-term revolver debt

(642)

 

(16)

Proceeds from issuance of common stock under employee benefit plans

7

6

Tax withholdings on stock-based awards

(5)

(6)

Other financing activities

(1)

(3)

Net cash provided by (used in) financing activities

(234)

 

(107)

Effect of exchange rates on cash and cash equivalents

 

Increase (decrease) in cash and cash equivalents

$

3

$

(330)

Cash and cash equivalents at beginning of period

38

 

558

Cash and cash equivalents at end of period

$

41

$

228

The accompanying notes are an integral part of these consolidated financial statements.

7

Table of Contents

HD SUPPLY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Dollars in millions, shares in thousands, unaudited

Three Months Ended

 

Six Months Ended

August 4, 2019

July 29, 2018

 

August 4, 2019

July 29, 2018

    

Shares

    

Amount

    

Shares

    

Amount

    

Shares

    

Amount

    

Shares

    

Amount

Common Stock

 

  

 

  

 

  

 

  

  

 

  

 

  

 

  

Beginning balance

 

205,367

$

2

 

204,356

$

2

204,806

$

2

 

203,914

$

2

Shares issued under employee benefit plans

 

42

 

 

208

 

603

 

 

650

 

Ending balance

 

205,409

$

2

 

204,564

$

2

205,409

$

2

 

204,564

$

2

Paid-in Capital

 

  

 

  

 

  

 

  

  

 

  

 

  

 

  

Beginning balance

 

$

4,079

 

$

4,038

$

4,067

 

$

4,029

Stock-based compensation

 

 

5

 

 

6

 

12

 

 

12

Shares issued under employee benefit plans

 

 

2

 

 

5

 

7

 

 

7

Other

 

 

 

 

(2)

 

 

 

(1)

Ending balance

 

$

4,086

 

$

4,047

$

4,086

 

$

4,047

Accumulated Deficit

 

  

 

  

 

  

 

  

  

 

  

 

  

 

  

Beginning balance

 

$

(1,467)

 

$

(1,877)

$

(1,572)

 

$

(1,966)

Cumulative effect of accounting change

(3)

Net Income

 

 

135

 

 

131

 

242

 

 

220

Other

1

1

1

Ending balance

 

$

(1,332)

 

$

(1,745)

$

(1,332)

 

$

(1,745)

Accumulated Other Comprehensive Income (Loss)

 

  

 

  

 

  

 

  

  

 

  

 

  

 

  

Beginning balance

 

$

(35)

 

$

(16)

$

(30)

 

$

(17)

Unrealized loss on cash flow hedge, net of tax of $5, $-, $7, and $-

 

 

(16)

 

 

 

(21)

 

 

Foreign currency translation adjustment

 

 

 

 

1

 

 

 

2

Ending balance

 

$

(51)

 

$

(15)

$

(51)

 

$

(15)

Treasury Stock

 

  

 

  

 

  

 

  

  

 

  

 

  

 

  

Beginning balance

 

(34,541)

$

(1,203)

 

(20,149)

$

(656)

(34,153)

$

(1,186)

$

(18,190)

$

(582)

Purchase of common stock

 

(1,795)

 

(71)

 

(620)

 

(25)

(2,066)

 

(83)

 

(2,427)

 

(93)

Shares withheld for taxes

 

(2)

 

 

(9)

 

(119)

 

(5)

 

(161)

 

(6)

Ending balance

 

(36,338)

$

(1,274)

 

(20,778)

$

(681)

(36,338)

$

(1,274)

 

(20,778)

$

(681)

Total Stockholders’ Equity

 

169,071

$

1,431

 

183,786

$

1,608

169,071

$

1,431

 

183,786

$

1,608

The accompanying notes are an integral part of these consolidated financial statements.

8

Table of Contents

HD SUPPLY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

Amounts in millions, unaudited

Three Months Ended

Six Months Ended

    

August 4, 2019

    

July 29, 2018

    

August 4, 2019

    

July 29, 2018

Net Sales

$

1,624

$

1,600

$

3,117

$

2,989

Cost of sales

991

 

978

1,899

 

1,815

Gross Profit

633

 

622

1,218

 

1,174

Operating expenses:

Selling, general and administrative

396

 

384

788

 

756

Depreciation and amortization

26

 

25

51

 

47

Restructuring

 

2

(2)

 

9

Total operating expenses

422

 

411

837

 

812

Operating Income

211

 

211

381

 

362

Interest expense

28

 

35

56

 

69

Interest (income)

(1)

Income from Continuing Operations Before Provision for Income Taxes

183

176

325

294

Provision for income taxes

48

46

83

 

75

Income from Continuing Operations

$

135

 

130

$

242

 

219

Income from discontinued operations, net of tax

1

1

Net Income

$

135

$

131

$

242

$

220

Other comprehensive income (loss):

Foreign currency translation adjustment

1

2

Unrealized loss on cash flow hedge, net of tax of $5, $-, $7, and $-

(16)

(21)

Total Comprehensive Income

$

119

$

132

$

221

$

222

The accompanying notes are an integral part of these consolidated financial statements.

9

Table of Contents

HD SUPPLY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

Amounts in millions, except share and per share data, unaudited

    

August 4, 2019

    

February 3, 2019

ASSETS

Current assets:

Cash and cash equivalents

$

41

$

38

Receivables, less allowance for doubtful accounts of $19 and $18

 

860

 

732

Inventories

 

821

 

766

Other current assets

 

41

 

50

Total current assets

 

1,763

 

1,586

Property and equipment, net

 

385

 

370

Operating lease right-of-use assets

412

Goodwill

 

1,989

 

1,990

Intangible assets, net

 

179

 

191

Deferred tax asset

12

78

Other assets

 

16

 

18

Total assets

$

4,756

$

4,233

LIABILITIES AND STOCKHOLDER’S EQUITY

Current liabilities:

Accounts payable

$

498

$

367

Accrued compensation and benefits

 

70

 

109

Current installments of long-term debt

 

11

 

11

Current lease liabilities

114

Other current liabilities

 

158

 

257

Total current liabilities

 

851

 

744

Long-term debt, excluding current installments

 

2,062

 

2,129

Long-term lease liabilities

310

Other liabilities

 

95

 

77

Total liabilities

 

3,318

 

2,950

Stockholder’s equity:

Common stock, par value $0.01 ; authorized 1,000 shares; issued and outstanding 1,000 shares at August 4, 2019 and February 3, 2019

 

 

Paid-in capital

 

2,662

 

2,726

Accumulated deficit

 

(1,173)

 

(1,413)

Accumulated other comprehensive loss

 

(51)

 

(30)

Total stockholder’s equity

 

1,438

 

1,283

Total liabilities and stockholder’s equity

$

4,756

$

4,233

The accompanying notes are an integral part of these consolidated financial statements.

10

Table of Contents

HD SUPPLY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Amounts in millions, unaudited

Six Months Ended

    

August 4, 2019

    

July 29, 2018

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

242

$

220

Reconciliation of net income to net cash provided by (used in) operating activities:

Depreciation and amortization

 

54

 

51

Provision for uncollectibles

 

5

 

6

Non-cash interest expense

 

3

 

11

Stock-based compensation expense

 

12

 

12

Deferred income taxes

 

75

 

70

Other

 

1

 

(1)

Changes in assets and liabilities, net of the effects of acquisitions & dispositions:

(Increase) decrease in receivables

 

(133)

 

(183)

(Increase) decrease in inventories

 

(56)

 

(104)

(Increase) decrease in other current assets

 

(2)

 

(5)

Increase (decrease) in accounts payable and accrued liabilities

 

85

 

108

Increase (decrease) in other long-term liabilities

 

 

1

Net cash provided by (used in) operating activities

 

286

 

186

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

 

(54)

 

(47)

Proceeds from sales of property and equipment

2

Payments for businesses acquired, net of cash acquired

 

3

 

(362)

Net cash provided by (used in) investing activities

 

(49)

 

(409)

CASH FLOWS FROM FINANCING ACTIVITIES:

Equity distribution to Parent

(76)

(94)

Repayments of long-term debt

 

(5)

 

(5)

Repayments of financing liabilities

(88)

Borrowings on long-term revolver debt

 

578

 

10

Repayments on long-term revolver debt

 

(642)