The Home Depot, Inc. (HD) 10-Q 25 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Aug. 02, 2015	Aug. 18, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 2, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Registrant Name	HOME DEPOT INC
Entity Central Index Key	354,950
Current Fiscal Year End Date	--01-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,284,103,307

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Aug. 02, 2015	Feb. 01, 2015
Current Assets:
Cash and Cash Equivalents	$ 4,936	$ 1,723
Receivables, net	1,696	1,484
Merchandise Inventories	11,859	11,079
Other Current Assets	1,040	1,016
Total Current Assets	19,531	15,302
Property and Equipment, at cost	38,862	38,513
Less Accumulated Depreciation and Amortization	16,560	15,793
Net Property and Equipment	22,302	22,720
Goodwill	1,340	1,353
Other Assets	625	571
Total Assets	43,798	39,946
Current Liabilities:
Short-Term Debt	0	290
Accounts Payable	7,495	5,807
Accrued Salaries and Related Expenses	1,384	1,391
Sales Taxes Payable	603	434
Deferred Revenue	1,652	1,468
Income Taxes Payable	180	35
Current Installments of Long-Term Debt	3,057	38
Other Accrued Expenses	2,028	1,806
Total Current Liabilities	16,399	11,269
Long-Term Debt, excluding current installments	16,318	16,869
Other Long-Term Liabilities	1,884	1,844
Deferred Income Taxes	560	642
Total Liabilities	35,161	30,624
STOCKHOLDERS' EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.771 billion shares at August 2, 2015 and 1.768 billion shares at February 1, 2015; outstanding: 1.284 billion shares at August 2, 2015 and 1.307 billion shares at February 1, 2015	88	88
Paid-In Capital	8,972	8,885
Retained Earnings	29,275	26,995
Accumulated Other Comprehensive Loss	(582)	(452)
Treasury Stock, at cost, 487 million shares at August 2, 2015 and 461 million shares at February 1, 2015	(29,116)	(26,194)
Total Stockholders’ Equity	8,637	9,322
Total Liabilities and Stockholders' Equity	$ 43,798	$ 39,946

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Aug. 02, 2015	Feb. 01, 2015
Statement of Financial Position [Abstract]
Common Stock, par value	$ 0.05	$ 0.05
Common Stock, shares authorized	10,000	10,000
Common Stock, shares issued	1,771	1,768
Common Stock, shares outstanding	1,284	1,307
Treasury Stock, shares	487	461

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Income Statement [Abstract]
NET SALES	$ 24,829	$ 23,811	$ 45,720	$ 43,498
Cost of Sales	16,464	15,804	30,176	28,734
GROSS PROFIT	8,365	8,007	15,544	14,764
Operating Expenses:
Selling, General and Administrative	4,299	4,146	8,462	8,213
Depreciation and Amortization	419	413	838	826
Total Operating Expenses	4,718	4,559	9,300	9,039
OPERATING INCOME	3,647	3,448	6,244	5,725
Interest and Other (Income) Expense:
Interest and Investment Income	(149)	(17)	(153)	(117)
Interest Expense	233	208	430	399
Interest and Other, net	84	191	277	282
EARNINGS BEFORE PROVISION FOR INCOME TAXES	3,563	3,257	5,967	5,443
Provision for Income Taxes	1,329	1,207	2,154	2,014
NET EARNINGS	$ 2,234	$ 2,050	$ 3,813	$ 3,429
Weighted Average Common Shares	1,283	1,346	1,291	1,358
BASIC EARNINGS PER SHARE	$ 1.74	$ 1.52	$ 2.95	$ 2.53
Diluted Weighted Average Common Shares	1,289	1,353	1,298	1,365
DILUTED EARNINGS PER SHARE	$ 1.73	$ 1.52	$ 2.94	$ 2.51
Dividends Declared per Share	$ 0.59	$ 0.47	$ 1.18	$ 0.94

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Statement of Comprehensive Income [Abstract]
Net Earnings	$ 2,234	$ 2,050	$ 3,813	$ 3,429
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments	(241)	15	(130)	55
Cash Flow Hedges, net of tax	(14)	(13)	0	(11)
Other	0	1	0	1
Total Other Comprehensive (Loss) Income	(255)	3	(130)	45
COMPREHENSIVE INCOME	$ 1,979	$ 2,053	$ 3,683	$ 3,474

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings	$ 3,813	$ 3,429
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities:
Depreciation and Amortization	915	896
Stock-Based Compensation Expense	122	119
Gain on Sales of Investments	(144)	(112)
Changes in Assets and Liabilities
Receivables, net	(232)	(239)
Merchandise Inventories	(828)	(589)
Other Current Assets	(17)	(111)
Accounts Payable and Accrued Expenses	2,017	1,366
Deferred Revenue	187	164
Income Taxes Payable	287	446
Deferred Income Taxes	(81)	54
Other	(105)	(138)
Net Cash Provided by Operating Activities	5,934	5,285
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures	(705)	(631)
Proceeds from Sale of Other Investments	144	112
Proceeds from Sales of Property and Equipment	8	16
Net Cash Used in Investing Activities	(553)	(503)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of Short-Term Borrowings, net	(290)	0
Proceeds from Long-Term Borrowings, net of discount	2,492	1,981
Repayments of Long-Term Debt	(19)	(21)
Repurchases of Common Stock	(3,085)	(3,500)
Proceeds from Sales of Common Stock	134	148
Cash Dividends Paid to Stockholders	(1,533)	(1,285)
Other Financing Activities	161	181
Net Cash Used in Financing Activities	(2,140)	(2,496)
Change in Cash and Cash Equivalents	3,241	2,286
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(28)	1
Cash and Cash Equivalents at Beginning of Period	1,723	1,929
Cash and Cash Equivalents at End of Period	$ 4,936	$ 4,216

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 1, 2015 , as filed with the Securities and Exchange Commission. Business The Home Depot, Inc. and its subsidiaries (the "Company") operate The Home Depot stores, which are full-service, warehouse-style stores averaging approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. The stores stock approximately 30,000 to 40,000 different kinds of building materials, home improvement supplies and lawn and garden products that are sold to do-it-yourself customers, do-it-for-me customers and professional customers. The Company also offers a significantly broader product assortment through its Home Depot, Home Decorators Collection and Blinds.com websites. Valuation Reserves As of August 2, 2015 and February 1, 2015 , the valuation allowances for Merchandise Inventories and uncollectible Receivables were not material. Reclassifications Certain amounts in prior fiscal periods have been reclassified to conform with the presentation adopted in the current fiscal periods. See Note 2 to the Consolidated Financial Statements included in this report.

Change in Accounting Policy

Change in Accounting Policy	6 Months Ended
	Aug. 02, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Change in Accounting Policy	CHANGE IN ACCOUNTING POLICY During the first quarter of fiscal 2015, the Company changed its accounting policy for shipping and handling costs from the Company's stores, locations or distribution centers to customers and for online fulfillment center costs. Under the new accounting policy, these costs are included in Cost of Sales, whereas they were previously included in Operating Expenses. Including these expenses in Cost of Sales better aligns these costs with the related revenue in the gross profit calculation. This change in accounting policy has been applied retrospectively. The Consolidated Statements of Earnings for the second quarter and first six months of fiscal 2014 have been reclassified to reflect this change in accounting policy. The impact of this reclassification was an increase of $154 million and $282 million to Cost of Sales for the second quarter and first six months of fiscal 2014, respectively, and a corresponding decrease to Operating Expenses in the same periods. This reclassification had no impact on Net Sales, Operating Income, Net Earnings or Earnings per Share.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Aug. 02, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Data Breach In the third quarter of fiscal 2014, the Company confirmed that its payment data systems were breached, which potentially impacted customers who used payment cards at self-checkout systems in the Company's U.S. and Canadian stores (the "Data Breach"). The Company's investigation to date has determined the intruder used a vendor’s user name and password to enter the perimeter of the Company’s network. The intruder then acquired elevated rights that allowed it to navigate portions of the Company’s systems and to deploy unique, custom-built malware on the Company’s self-checkout systems to access payment card information of customers who shopped at the Company's U.S. and Canadian stores between April 2014 and September 2014. The investigation of the Data Breach is ongoing, and the Company is supporting law enforcement efforts to identify the responsible parties. Litigation, Claims and Government Investigations In the second quarter of fiscal 2015, the payment card networks made claims against the Company for costs that they assert they or their issuing banks have incurred in connection with the Data Breach, including incremental counterfeit fraud losses and non-ordinary course operating expenses (such as card reissuance costs). At this time, the Company believes that settlement negotiations will ensue and that it is probable that the Company will incur a loss in connection with the payment card networks' claims. The Company has recorded an accrual for estimated probable losses that it expects to incur in connection with the claims made by the payment card networks, which amount is included in the expenses discussed below. The accrual for estimated probable losses is based on currently available information and expected payments associated with those claims. These estimates may change as new information becomes available or circumstances change. In addition, at least 57 class actions have been filed in courts in the U.S. and Canada, and other claims may be asserted against the Company on behalf of customers, payment card issuing banks, shareholders or others seeking damages or other related relief, allegedly arising from the Data Breach. The U.S. class actions have been consolidated for pre-trial proceedings in the United States District Court for the Northern District of Georgia. That court ordered that the individual class actions be administratively closed in favor of the filing of consolidated class action complaints on behalf of customers and financial institutions allegedly harmed by the Data Breach. In addition, several state and federal agencies, including State Attorneys General, are investigating events related to the Data Breach, including how it occurred, its consequences and the Company's responses. The Company is cooperating in the governmental investigations, and the Company may be subject to fines or other obligations. While a loss from these matters is reasonably possible, the Company is not able to estimate the costs, or range of costs, related to these matters because the proceedings remain in the early stages, alleged damages have not been specified, there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified, and there are significant factual and legal issues to be resolved. The Company has not concluded that a loss from these matters is probable; therefore, the Company has not recorded an accrual for litigation, claims and governmental investigations related to these matters in the second quarter of fiscal 2015 . The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. The Company believes that the ultimate amount paid on these actions, claims and investigations could have an adverse effect on the Company’s consolidated financial condition, results of operations, or cash flows in future periods. Expenses Incurred and Amounts Accrued In the second quarter of fiscal 2015 , the Company recorded $153 million of pretax gross expenses related to the Data Breach, partially offset by $61 million of expected insurance proceeds for costs the Company believes are reimbursable and probable of recovery under its insurance coverage, for pretax net expenses of $92 million . The results for the first six months of fiscal 2015 included $169 million of pretax gross expenses related to the Data Breach, partially offset by $70 million of expected insurance proceeds, for pretax net expenses of $99 million . Since the Data Breach occurred, the Company has recorded $232 million of pretax gross expenses related to the Data Breach, partially offset by $100 million of expected insurance proceeds, for pretax net expenses of $132 million . These expenses include costs to investigate the Data Breach; provide identity protection services, including credit monitoring, to impacted customers; increase call center staffing; and pay legal and other professional services, all of which were expensed as incurred. Expenses also include an accrual for estimated probable losses that the Company expects to incur in connection with the claims made by the payment card networks. These expenses are included in Selling, General and Administrative expenses in the accompanying Consolidated Statements of Earnings. At August 2, 2015 , accrued liabilities and the insurance receivable related to the Data Breach consisted of the following (amounts in millions): Accrued Liabilities Insurance Receivable Balance at August 3, 2014 $ — $ — (Expenses incurred) insurance receivable recorded (43 ) 15 Payments made (received) 35 — Balance at November 2, 2014 (8 ) 15 (Expenses incurred) insurance receivable recorded (20 ) 15 Payments made (received) 16 (10 ) Balance at February 1, 2015 (12 ) 20 (Expenses incurred) insurance receivable recorded (16 ) 9 Payments made (received) 9 (20 ) Balance at May 3, 2015 (19 ) 9 (Expenses incurred) insurance receivable recorded (153 ) 61 Payments made (received) 20 — Balance at August 2, 2015 $ (152 ) $ 70 Future Costs The Company expects to incur additional legal and other professional services expenses associated with the Data Breach in future periods and will recognize these expenses as services are received. Costs related to the Data Breach that may be incurred in future periods may include additional liabilities to payment card networks; liabilities from current and future civil litigation, governmental investigations and enforcement proceedings; future expenses for legal, investigative and consulting fees; and incremental expenses and capital investments for remediation activities. The Company believes that the ultimate amount paid on these services and claims could have an adverse effect on the Company’s consolidated financial condition, results of operations, or cash flows in future periods. Insurance Coverage The Company maintained $100 million of network security and privacy liability insurance coverage in fiscal 2014, above a $7.5 million deductible, to limit the Company's exposure to losses such as those related to the Data Breach. As of August 2, 2015 , the Company had received initial payments totaling $30 million of insurance reimbursements under the fiscal 2014 policy, and expects to receive additional payments. In the first quarter of fiscal 2015, the Company entered into a new policy, with $100 million of network security and privacy liability insurance coverage, above a $10 million deductible, to limit the Company's exposure to similar losses.

Investment in HD Supply Holding

Investment in HD Supply Holdings, Inc.	6 Months Ended
	Aug. 02, 2015
Investments, All Other Investments [Abstract]
Investment in HD Supply Holdings, Inc.	INVESTMENT IN HD SUPPLY HOLDINGS, INC. At the end of fiscal 2013, the Company owned 16.3 million shares of HD Supply Holdings, Inc. ("HD Supply") common stock, which represented approximately 8% of the shares of HD Supply common stock outstanding. This investment was accounted for using the cost method, as there were significant restrictions in place on the Company's ability to sell or transfer its HD Supply shares. The restrictions were controlled by the three largest shareholders of HD Supply (the "Principal Shareholders") for so long as they continued to own a certain portion of their original holdings of HD Supply. The carrying value of the HD Supply shares was impaired by the Company to a zero cost basis in fiscal 2009. In the first quarter of fiscal 2014, the Principal Shareholders elected to sell shares of HD Supply common stock in a secondary public offering (the "May 2014 Offering"). Under the terms of a registration rights agreement among the Company, HD Supply and the Principal Shareholders (the "Registration Rights Agreement"), the Company had the right to include a portion of its shares in the May 2014 Offering and elected to do so. During the third and fourth quarters of fiscal 2014, two of the Principal Shareholders again elected to sell shares of HD Supply common stock in secondary public offerings, and the Company again exercised its rights under the Registration Rights Agreement to include a portion of its shares in these offerings. As a result of all of these offerings (including an overallotment option exercised during the second quarter of fiscal 2014 by the underwriters of the May 2014 Offering), the Company sold 12.2 million shares of HD Supply common stock in fiscal 2014, for which it received $323 million of proceeds and recognized a corresponding gain in fiscal 2014. The total pretax gain of $323 million is included in Interest and Investment Income in the Consolidated Statements of Earnings for fiscal 2014, of which a pretax gain of $112 million was recognized in the first six months of fiscal 2014. During the second quarter of fiscal 2015, the remaining Principal Shareholder elected to sell shares of HD Supply common stock in a secondary public offering, and the Company again exercised its rights under the Registration Rights Agreement to include its shares in this offering. As a result, the Company sold its remaining 4.1 million shares of HD Supply common stock, for which it received $144 million of proceeds and recognized a corresponding gain in the second quarter of fiscal 2015. The total pretax gain of $144 million is included in Interest and Investment Income in the accompanying Consolidated Statements of Earnings for the second quarter and first six months of fiscal 2015.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Aug. 02, 2015
Debt Disclosure [Abstract]
Long-Term Debt	LONG-TERM DEBT In May 2015, the Company issued $1.25 billion of 2.625% senior notes due June 1, 2022 (the "2022 notes") at a discount of $5 million and $1.25 billion of 4.25% senior notes due April 1, 2046 (the "2046 notes") at a discount of $3 million (together, the "May 2015 issuance"). Interest on the 2022 notes is due semi-annually on June 1 and December 1 of each year, beginning December 1, 2015. Interest on the 2046 notes is due semi-annually on April 1 and October 1 of each year, beginning October 1, 2015. The net proceeds of the May 2015 issuance were used for general corporate purposes, including repurchases of shares of the Company's common stock. The $8 million discount associated with the May 2015 issuance is being amortized over the term of the notes using the effective interest rate method. Issuance costs associated with the May 2015 issuance were approximately $19 million and are being amortized over the term of the notes. The Company's senior notes may be redeemed by the Company at any time, in whole or in part, at the redemption price plus accrued interest up to the redemption date. The redemption price is equal to the greater of (1) 100% of the principal amount of the notes to be redeemed, and (2) the sum of the present values of the remaining scheduled payments of principal and interest to the Par Call Date, as defined in the respective notes. Additionally, if a Change in Control Triggering Event occurs, as defined in the notes, holders of the notes have the right to require the Company to redeem those notes at 101% of the aggregate principal amount of the notes plus accrued interest up to the redemption date. The Company is generally not limited under the indenture governing the notes in its ability to incur additional indebtedness or required to maintain financial ratios or specified levels of net worth or liquidity. Further, while the indenture governing the notes contains various restrictive covenants, none are expected to impact the Company's liquidity or capital resources.

Accelerated Share Repurchase Ag

Accelerated Share Repurchase Agreements	6 Months Ended
	Aug. 02, 2015
Accelerated Share Repurchase [Abstract]
Accelerated Share Repurchase Agreements	ACCELERATED SHARE REPURCHASE AGREEMENTS The Company enters into an Accelerated Share Repurchase ("ASR") agreement from time to time with a third-party financial institution to repurchase shares of the Company's common stock. Under the ASR agreement, the Company pays a specified amount to the financial institution and receives an initial delivery of shares. This initial delivery of shares represents the minimum number of shares that the Company may receive under the agreement. Upon settlement of the ASR agreement, the financial institution delivers additional shares, with the final number of shares delivered determined with reference to the volume weighted average price per share of the Company's common stock over the term of the agreement, less a negotiated discount. The transactions are accounted for as equity transactions and are included in Treasury Stock when the shares are received, at which time there is an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share. The following table provides the terms for each of the ASR agreements the Company entered into during the first six months of fiscal 2015. Each of these agreements followed the structure outlined above (amounts in millions): Agreement Date Settlement Date Amount Initial Shares Delivered Additional Shares Delivered Total Shares Delivered Q1 2015 Q1 2015 $ 850 7.0 0.5 7.5 Q2 2015 (1) TBD $ 1,500 12.0 TBD TBD ————— (1) The fair market value of the initial 12.0 million shares delivered on the date of purchase was $1.338 billion and is included in Treasury Stock in the accompanying Consolidated Balance Sheets as of August 2, 2015. The remaining $162 million is included in Paid-In Capital in the accompanying Consolidated Balance Sheets as of August 2, 2015. The final number of shares delivered upon settlement of the $1.5 billion ASR agreement will be determined in the third quarter of fiscal 2015 with reference to the volume weighted average price per share of the Company's common stock over the term of the agreement, less a negotiated discount. TBD - To Be Determined

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Aug. 02, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The fair value of an asset is considered to be the price at which the asset could be sold in an orderly transaction between unrelated knowledgeable and willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, rather than the amount that would be paid to settle the liability with the creditor. Assets and liabilities recorded at fair value are measured using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are: • Level 1 – Observable inputs that reflect quoted prices in active markets • Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable • Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions Assets and Liabilities Measured at Fair Value on a Recurring Basis The assets and liabilities of the Company that are measured at fair value on a recurring basis as of August 2, 2015 and February 1, 2015 were as follows (amounts in millions): Fair Value at August 2, 2015 Using Fair Value at February 1, 2015 Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative agreements - assets $ — $ 153 $ — $ — $ 124 $ — Derivative agreements - liabilities — (23 ) — — — — Total $ — $ 130 $ — $ — $ 124 $ — The Company uses derivative financial instruments from time to time in the management of its interest rate exposure on long-term debt and its exposure on foreign currency fluctuations. The fair value of the Company’s derivative financial instruments was measured using level 2 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Long-lived assets were analyzed for impairment on a nonrecurring basis using fair value measurements with unobservable inputs (level 3). Impairment charges related to long-lived assets in the first six months of fiscal 2015 and 2014 were not material. The aggregate fair value of the Company’s senior notes, based on quoted market prices, was $20.2 billion and $ 19.0 billion at August 2, 2015 and February 1, 2015 , respectively, compared to a carrying value of $18.7 billion and $16.2 billion at August 2, 2015 and February 1, 2015 , respectively.

Basic And Diluted Weighted Aver

Basic And Diluted Weighted Average Common Shares	6 Months Ended
	Aug. 02, 2015
Earnings Per Share [Abstract]
Basic And Diluted Weighted Average Common Shares	BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES The reconciliation of basic to diluted weighted average common shares for the three and six months ended August 2, 2015 and August 3, 2014 was as follows (amounts in millions): Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, Weighted average common shares 1,283 1,346 1,291 1,358 Effect of potentially dilutive securities: Stock plans 6 7 7 7 Diluted weighted average common shares 1,289 1,353 1,298 1,365 Stock plans consist of shares granted under the Company’s employee stock plans. Options to purchase 2 million and 2 million shares of common stock for the three months ended August 2, 2015 and August 3, 2014 , respectively, and options to purchase 2 million and 2 million shares of common stock for the six months ended August 2, 2015 and August 3, 2014 , respectively, were excluded from the computation of Diluted Earnings per Share because their effect would have been anti-dilutive.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policy)	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 1, 2015 , as filed with the Securities and Exchange Commission.
Reclassifications	Reclassifications Certain amounts in prior fiscal periods have been reclassified to conform with the presentation adopted in the current fiscal periods. See Note 2 to the Consolidated Financial Statements included in this report.
Cost of Sales	During the first quarter of fiscal 2015, the Company changed its accounting policy for shipping and handling costs from the Company's stores, locations or distribution centers to customers and for online fulfillment center costs. Under the new accounting policy, these costs are included in Cost of Sales, whereas they were previously included in Operating Expenses. Including these expenses in Cost of Sales better aligns these costs with the related revenue in the gross profit calculation. This change in accounting policy has been applied retrospectively.

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies (Tables)	6 Months Ended
	Aug. 02, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Loss Contingencies by Contingency	At August 2, 2015 , accrued liabilities and the insurance receivable related to the Data Breach consisted of the following (amounts in millions): Accrued Liabilities Insurance Receivable Balance at August 3, 2014 $ — $ — (Expenses incurred) insurance receivable recorded (43 ) 15 Payments made (received) 35 — Balance at November 2, 2014 (8 ) 15 (Expenses incurred) insurance receivable recorded (20 ) 15 Payments made (received) 16 (10 ) Balance at February 1, 2015 (12 ) 20 (Expenses incurred) insurance receivable recorded (16 ) 9 Payments made (received) 9 (20 ) Balance at May 3, 2015 (19 ) 9 (Expenses incurred) insurance receivable recorded (153 ) 61 Payments made (received) 20 — Balance at August 2, 2015 $ (152 ) $ 70

Accelerated Share Repurchase 17

Accelerated Share Repurchase Agreements Accelerated Share Repurchase Agreements (Tables)	6 Months Ended
	Aug. 02, 2015
Accelerated Share Repurchase Agreements [Abstract]
Accelerated Share Repurchases	The following table provides the terms for each of the ASR agreements the Company entered into during the first six months of fiscal 2015. Each of these agreements followed the structure outlined above (amounts in millions): Agreement Date Settlement Date Amount Initial Shares Delivered Additional Shares Delivered Total Shares Delivered Q1 2015 Q1 2015 $ 850 7.0 0.5 7.5 Q2 2015 (1) TBD $ 1,500 12.0 TBD TBD ————— (1) The fair market value of the initial 12.0 million shares delivered on the date of purchase was $1.338 billion and is included in Treasury Stock in the accompanying Consolidated Balance Sheets as of August 2, 2015. The remaining $162 million is included in Paid-In Capital in the accompanying Consolidated Balance Sheets as of August 2, 2015. The final number of shares delivered upon settlement of the $1.5 billion ASR agreement will be determined in the third quarter of fiscal 2015 with reference to the volume weighted average price per share of the Company's common stock over the term of the agreement, less a negotiated discount. TBD - To Be Determined

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Aug. 02, 2015
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	The assets and liabilities of the Company that are measured at fair value on a recurring basis as of August 2, 2015 and February 1, 2015 were as follows (amounts in millions): Fair Value at August 2, 2015 Using Fair Value at February 1, 2015 Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative agreements - assets $ — $ 153 $ — $ — $ 124 $ — Derivative agreements - liabilities — (23 ) — — — — Total $ — $ 130 $ — $ — $ 124 $ —

Basic And Diluted Weighted Av19

Basic And Diluted Weighted Average Common Shares (Tables)	6 Months Ended
	Aug. 02, 2015
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	The reconciliation of basic to diluted weighted average common shares for the three and six months ended August 2, 2015 and August 3, 2014 was as follows (amounts in millions): Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, Weighted average common shares 1,283 1,346 1,291 1,358 Effect of potentially dilutive securities: Stock plans 6 7 7 7 Diluted weighted average common shares 1,289 1,353 1,298 1,365

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Narrative) (Details) - Aug. 02, 2015 product in Thousands, ft² in Thousands	ft²product
Minimum [Member]
Accounting Policies [Line Items]
Approximate number of different types of inventory held at stores | product	30
Maximum [Member]
Accounting Policies [Line Items]
Approximate number of different types of inventory held at stores | product	40
Average Store Size [Member]
Accounting Policies [Line Items]
Approximate average square footage of warehouse-style stores	104
Average Garden Center Size [Member]
Accounting Policies [Line Items]
Approximate average square footage of warehouse-style stores	24

Change in Accounting Policy (Na

Change in Accounting Policy (Narrative) (Details) - Aug. 03, 2014 - USD ($) $ in Millions	Total	Total
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Change in Accounting Policy, Effect of Change on Operating Expenses	$ 154	$ 282
Change in Accounting Policy, Effect of Change on Cost of Sales	$ 154	$ 282

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	3 Months Ended				6 Months Ended	12 Months Ended
	Aug. 02, 2015USD ($)	May. 03, 2015USD ($)	Feb. 01, 2015USD ($)	Nov. 02, 2014USD ($)	Aug. 02, 2015USD ($)	Aug. 02, 2015USD ($)	Feb. 01, 2015USD ($)
Loss Contingency, Information about Litigation Matters [Abstract]
Data Breach, Number of Actions Filed	57				57	57
Data Breach, Expenses Incurred Net of Insurance Receivable Recorded	$ 92				$ 99	$ 132
Insurance [Abstract]
Network Security Insurance Coverage					100		$ 100
Network Security Insurance Deductible					10		7.5
Total Network Security Insurance Reimbursements Received under Fiscal 2014 Policy						30
Data Breach [Member]
Loss Contingency Accrual [Roll Forward]
Data Breach, Accrued Liabilities, Beginning Balance	(19)	$ (12)	$ (8)	$ 0	(12)	0
Data Breach, Accrued Liabilities, Expenses Incurred	(153)	(16)	(20)	(43)	(169)	(232)
Data Breach, Accrued Liabilities, Payments Made	20	9	16	35
Data Breach, Accrued Liabilities, Ending Balance	(152)	(19)	(12)	(8)	(152)	(152)	(12)
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward]
Data Breach, Insurance Receivable, Beginning Balance	9	20	15		20
Data Breach, Insurance Receivable, Insurance Receivable Recorded	61	9	15	15	70	100
Data Breach, Insurance Receivable, Payments Received		(20)	(10)
Data Breach, Insurance Receivable, Ending Balance	$ 70	$ 9	$ 20	$ 15	$ 70	$ 70	$ 20

Investment in HD Supply Holdi23

Investment in HD Supply Holdings, Inc. (Narrative) (Details) - HD Supply Inc [Member] - USD ($) shares in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Feb. 01, 2015	Feb. 02, 2014	Jan. 31, 2010
Schedule of Cost-method Investments [Line Items]
Cost Method Investments, Common Stock Shares Owned				16.3
Cost Method Investment, Ownership Percentage				8.00%
Cost Method Investments, Cost Basis					$ 0
Cost Method Investments, Common Stock Shares Sold	4.1		12.2
Interest And Investment Income [Member]
Schedule of Cost-method Investments [Line Items]
Cost Method Investments, Realized Gains	$ 144,000,000	$ 112,000,000	$ 323,000,000

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions	May. 31, 2015	Aug. 02, 2015	May. 28, 2015
Debt Instrument [Line Items]
Debt Instrument, Redemption Price		100.00%
Debt Instrument, Change of Control, Redemption Price, Percent		101.00%
2.625% Senior Notes Due June 1, 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 1,250
Debt Instrument, Interest Rate, Stated Percentage			2.625%
Debt Instrument, Maturity Date	Jun. 1, 2022
Debt Discount			$ 5
Debt Instrument, Frequency of Periodic Payment	semi-annually on June 1 and December 1
4.25% Senior Notes Due April 1, 2046 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 1,250
Debt Instrument, Interest Rate, Stated Percentage			4.25%
Debt Instrument, Maturity Date	Apr. 1, 2046
Debt Discount			$ 3
Debt Instrument, Frequency of Periodic Payment	semi-annually on April 1 and October 1
May 2015 Issuance [Member]
Debt Instrument [Line Items]
Debt Discount			$ 8
Debt Issuance Costs	$ 19

Accelerated Share Repurchase 25

Accelerated Share Repurchase Agreements (Narrative) (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended		2 Months Ended		3 Months Ended		6 Months Ended
	May. 03, 2015	Apr. 15, 2015	Aug. 02, 2015	May. 03, 2015	Aug. 02, 2015	May. 03, 2015	Aug. 02, 2015	Aug. 03, 2014	Feb. 01, 2015
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock							$ 3,085	$ 3,500
Amount of ASR held in Treasury Stock			$ 29,116		$ 29,116		29,116		$ 26,194
Paid-In Capital			$ 8,972		8,972		8,972		$ 8,885
Q1 Accelerated Share Repurchase Agreement [Member]
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock						$ 850
Number of shares of common stock repurchased pursuant to accelerated share repurchase agreement	0.5	7		7.5
Q2 Accelerated Share Repurchase Agreement [Member]
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock					1,500
Number of shares of common stock repurchased pursuant to accelerated share repurchase agreement			12
Amount of ASR held in Treasury Stock			$ 1,338		1,338		1,338
Paid-In Capital			$ 162		$ 162		$ 162

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Billions	Aug. 02, 2015	Feb. 01, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 18.7	$ 16.2
Senior Notes [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of senior notes	$ 20.2	$ 19

Fair Value Measurements (Assets

Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions	Aug. 02, 2015	Feb. 01, 2015
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative agreements - assets	$ 0	$ 0
Derivative agreements - liabilities	0	0
Total	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative agreements - assets	153	124
Derivative agreements - liabilities	(23)	0
Total	130	124
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative agreements - assets	0	0
Derivative agreements - liabilities	0	0
Total	$ 0	$ 0

Basic And Diluted Weighted Av28

Basic And Diluted Weighted Average Common Shares (Narrative) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options to purchase common stock excluded from computation of Diluted Earnings per Share	2	2	2	2

Basic and Diluted Weighted Av29

Basic and Diluted Weighted Average Common Shares (Reconciliation Of Basic To Diluted Weighted Average Common Shares) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Weighted average common shares	1,283	1,346	1,291	1,358
Effect of potentially dilutive securities: Stock plans	6	7	7	7
Diluted weighted average common shares	1,289	1,353	1,298	1,365