The Home Depot, Inc. (HD) 10-Q 22 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Oct. 30, 2016	Nov. 15, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	HOME DEPOT INC
Entity Central Index Key	354,950
Current Fiscal Year End Date	--01-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,218,160,970

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Oct. 30, 2016	Jan. 31, 2016
Current Assets:
Cash and Cash Equivalents	$ 3,589	$ 2,216
Receivables, net	1,995	1,890
Merchandise Inventories	13,241	11,809
Other Current Assets	523	569
Total Current Assets	19,348	16,484
Property and Equipment, at cost	40,015	39,266
Less Accumulated Depreciation and Amortization	18,175	17,075
Net Property and Equipment	21,840	22,191
Goodwill	2,095	2,102
Other Assets	1,219	1,196
Total Assets	44,502	41,973
Current Liabilities:
Short-Term Debt	0	350
Accounts Payable	8,054	6,565
Accrued Salaries and Related Expenses	1,398	1,515
Sales Taxes Payable	594	476
Deferred Revenue	1,632	1,566
Income Taxes Payable	123	34
Current Installments of Long-Term Debt	543	77
Other Accrued Expenses	2,087	1,941
Total Current Liabilities	14,431	12,524
Long-Term Debt, excluding current installments	22,338	20,789
Other Long-Term Liabilities	1,856	1,965
Deferred Income Taxes	255	379
Total Liabilities	38,880	35,657
STOCKHOLDERS' EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.775 billion shares at October 30, 2016 and 1.772 billion shares at January 31, 2016; outstanding: 1.220 billion shares at October 30, 2016 and 1.252 billion shares at January 31, 2016	88	88
Paid-In Capital	9,628	9,347
Retained Earnings	34,612	30,973
Accumulated Other Comprehensive Loss	(883)	(898)
Treasury Stock, at cost, 555 million shares at October 30, 2016 and 520 million shares at January 31, 2016	(37,823)	(33,194)
Total Stockholders’ Equity	5,622	6,316
Total Liabilities and Stockholders' Equity	$ 44,502	$ 41,973

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Oct. 30, 2016	Jan. 31, 2016
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	1,775	1,772
Common Stock, shares outstanding	1,220	1,252
Treasury Stock, shares	555	520

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2016	Nov. 01, 2015	Oct. 30, 2016	Nov. 01, 2015
Income Statement [Abstract]
NET SALES	$ 23,154	$ 21,819	$ 72,388	$ 67,539
Cost of Sales	15,112	14,254	47,628	44,430
GROSS PROFIT	8,042	7,565	24,760	23,109
Operating Expenses:
Selling, General and Administrative	4,280	4,161	12,949	12,623
Depreciation and Amortization	442	423	1,311	1,261
Total Operating Expenses	4,722	4,584	14,260	13,884
OPERATING INCOME	3,320	2,981	10,500	9,225
Interest and Other (Income) Expense:
Interest and Investment Income	(10)	(7)	(25)	(160)
Interest Expense	246	247	726	677
Interest and Other, net	236	240	701	517
EARNINGS BEFORE PROVISION FOR INCOME TAXES	3,084	2,741	9,799	8,708
Provision for Income Taxes	1,115	1,016	3,586	3,170
NET EARNINGS	$ 1,969	$ 1,725	$ 6,213	$ 5,538
Weighted Average Common Shares	1,224	1,268	1,236	1,284
BASIC EARNINGS PER SHARE	$ 1.61	$ 1.36	$ 5.03	$ 4.31
Diluted Weighted Average Common Shares	1,229	1,274	1,242	1,290
DILUTED EARNINGS PER SHARE	$ 1.60	$ 1.35	$ 5	$ 4.29
Dividends Declared per Share	$ 0.69	$ 0.59	$ 2.07	$ 1.77

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2016	Nov. 01, 2015	Oct. 30, 2016	Nov. 01, 2015
Statement of Comprehensive Income [Abstract]
Net Earnings	$ 1,969	$ 1,725	$ 6,213	$ 5,538
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments	(125)	(70)	(8)	(200)
Cash Flow Hedges, net of tax	21	(10)	23	(10)
Other	(1)	0	0	0
Total Other Comprehensive (Loss) Income	(105)	(80)	15	(210)
COMPREHENSIVE INCOME	$ 1,864	$ 1,645	$ 6,228	$ 5,328

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Oct. 30, 2016	Nov. 01, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings	$ 6,213	$ 5,538
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities:
Depreciation and Amortization	1,474	1,384
Stock-Based Compensation Expense	199	177
Gain on Sales of Investments	0	(144)
Changes in Assets and Liabilities, net of the effects of acquisitions:
Receivables, net	(108)	(220)
Merchandise Inventories	(1,453)	(1,176)
Other Current Assets	36	57
Accounts Payable and Accrued Expenses	1,449	1,582
Deferred Revenue	64	50
Income Taxes Payable	184	295
Deferred Income Taxes	(131)	(148)
Other	(8)	(29)
Net Cash Provided by Operating Activities	7,919	7,366
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures	(1,145)	(1,083)
Proceeds from Sales of Investments	0	144
Payments for Businesses Acquired, net	0	(1,662)
Proceeds from Sales of Property and Equipment	30	24
Net Cash Used in Investing Activities	(1,115)	(2,577)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of Short-Term Borrowings, net	(350)	(290)
Proceeds from Long-Term Borrowings, net of discounts	4,959	3,991
Repayments of Long-Term Debt	(3,034)	(29)
Repurchases of Common Stock	(4,535)	(5,043)
Proceeds from Sales of Common Stock	136	149
Cash Dividends Paid to Stockholders	(2,567)	(2,287)
Other Financing Activities	(33)	86
Net Cash Used in Financing Activities	(5,424)	(3,423)
Change in Cash and Cash Equivalents	1,380	1,366
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(7)	(49)
Cash and Cash Equivalents at Beginning of Period	2,216	1,723
Cash and Cash Equivalents at End of Period	$ 3,589	$ 3,040

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 30, 2016
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 U.S. 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 January 31, 2016 , as filed with the Securities and Exchange Commission. Business The Home Depot, Inc., together with its subsidiaries (the "Company"), is a home improvement retailer that sells a wide assortment of building materials, home improvement products and lawn and garden products and provides a number of services to do-it-yourself customers, do-it-for-me customers and professional customers. 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, stock approximately 30,000 to 40,000 different kinds of products. The Company also offers a significantly broader product assortment through its Home Depot, Home Decorators Collection and Blinds.com websites. Valuation Reserves As of October 30, 2016 and January 31, 2016 , the valuation allowances for Merchandise Inventories and uncollectible Receivables were not material. Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory", which requires an entity to recognize the income tax consequences of an intercompany transfer of assets other than inventory when the transfer occurs. An entity will continue to recognize the income tax consequences of an intercompany transfer of inventory when the inventory is sold to a third party. This guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods, using a modified retrospective approach, and early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-16 will have on its Consolidated Financial Statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting", which makes several modifications to the accounting for employee share-based payment transactions, including the requirement to recognize the income tax effects of awards that vest or settle as income tax expense. This guidance also clarifies the presentation of certain components of share-based awards in the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. The Company does not believe that ASU No. 2016-09 will have a material impact on its Consolidated Financial Statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. This guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, using a modified retrospective approach, and early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-02 will have on its Consolidated Financial Statements and related disclosures. I n May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. ASU No. 2014-09 supersedes most existing revenue recognition guidance in U.S. GAAP, and it permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which delayed the effective date of ASU No. 2014-09 by one year. As a result, ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods. In fiscal 2016, the FASB issued guidance clarifying the interpretation of certain principles of ASU No. 2014-09. The Company is evaluating the effect that this revenue recognition guidance will have on its Consolidated Financial Statements and related disclosures. 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.

Recently Adopted Accounting Pro

Recently Adopted Accounting Pronouncements	9 Months Ended
	Oct. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Adopted Accounting Pronouncements	RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS On February 1, 2016, the Company adopted ASU No. 2015-03, "Interest–Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs". Under ASU No. 2015-03, debt issuance costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The adoption of ASU No. 2015-03 has been applied retrospectively, and accordingly, the Company's Consolidated Balance Sheet as of January 31, 2016 has been reclassified to reflect this adoption. The impact of this reclassification was a decrease of $99 million to Other Assets, and a corresponding decrease to Long-Term Debt, excluding current installments, as of January 31, 2016. Also on February 1, 2016, the Company early adopted ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". Under ASU No. 2015-17, deferred tax assets and liabilities are presented as noncurrent in a classified balance sheet. The adoption of ASU No. 2015-17 has been applied retrospectively and accordingly, the Company's Consolidated Balance Sheet as of January 31, 2016 has been reclassified to reflect this adoption. The impact of this reclassification was a decrease of $509 million to Other Current Assets, an increase of $32 million to Other Assets, a decrease of $2 million to Other Accrued Expenses and a $475 million decrease to Deferred Income Taxes as of January 31, 2016. All future deferred tax assets and liabilities will be presented as noncurrent.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Oct. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	LONG-TERM DEBT In September 2016, the Company issued $1.0 billion of 2.125% senior notes due September 15, 2026 (the "September 2026 notes") at a discount of $11 million and $1.0 billion of 3.50% senior notes due September 15, 2056 (the "2056 notes") at a discount of $19 million (together, the "September 2016 issuance"). Interest on the September 2026 and the 2056 notes is due semi-annually on March 15 and September 15 of each year, beginning March 15, 2017. The $30 million discount associated with the September 2016 issuance is being amortized over the term of the notes using the effective interest rate method. Issuance costs of $16 million associated with the September 2016 issuance were recorded as a direct deduction to the senior notes and are being amortized over the term of the notes. The net proceeds of the September 2016 issuance were used for general corporate purposes, including repurchases of shares of the Company's common stock. In February 2016, the Company issued $1.35 billion of 2.00% senior notes due April 1, 2021 (the "2021 notes") at a discount of $5 million , $1.3 billion of 3.00% senior notes due April 1, 2026 (the "April 2026 notes") at a discount of $8 million , and $350 million of 4.25% senior notes due April 1, 2046 (the "2046 notes") at a premium of $2 million (together, the "February 2016 issuance"). The 2046 notes form a single series with the Company's $1.25 billion of 4.25% senior notes due April 1, 2046 that were issued in May 2015, and have the same terms. The aggregate principal amount outstanding of the Company's senior notes due April 1, 2046 is $1.6 billion . Interest on the 2021 and the April 2026 notes is due semi-annually on April 1 and October 1 of each year, beginning October 1, 2016. Interest on the 2046 notes is due semi-annually on April 1 and October 1 of each year, beginning April 1, 2016, with interest accruing from October 1, 2015. The $13 million discount associated with the 2021 and the April 2026 notes and the $2 million premium associated with the 2046 notes are being amortized over the term of the notes using the effective interest rate method. Issuance costs of $17 million associated with the February 2016 issuance were recorded as a direct deduction to the senior notes and are being amortized over the term of the notes. The net proceeds of the February 2016 issuance were used to repay the Company's 5.40% senior notes that matured on March 1, 2016 . All of the Company's senior notes, other than the $500 million of floating rate senior notes due September 15, 2017 , 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, or (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 all 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 indentures 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 indentures governing the notes contain various restrictive covenants, none are expected to impact the Company's liquidity or capital resources. In fiscal 2015, the Company entered into forward starting interest rate swap agreements with a combined notional amount of $1.0 billion , accounted for as cash flow hedges, to hedge interest rate fluctuations in anticipation of the February 2016 issuance. In connection with the February 2016 issuance, the Company paid $89 million to settle these forward starting interest rate swap agreements. This amount, net of income taxes, is included in Accumulated Other Comprehensive Loss and is being amortized to Interest Expense over the term of the April 2026 notes.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Data Breach As previously reported, 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"). Litigation, Claims and Government Investigations In fiscal 2015, the four major payment card networks made claims against the Company for costs that they assert they or their issuing banks incurred in connection with the Data Breach. The Company entered into settlement agreements with all four networks in fiscal 2015. In addition, a total of 57 putative class actions were filed in the U.S. on behalf of customers and financial institutions and in Canada on behalf of customers allegedly harmed by the Data Breach. The U.S. class actions were consolidated for pre-trial proceedings in the United States District Court for the Northern District of Georgia (the "District Court"). In the fourth quarter of fiscal 2015 and first quarter of fiscal 2016, the Company agreed to settlement terms to resolve and dismiss the claims asserted in the U.S. and Canadian customer class actions, respectively. In August 2016, the respective courts approved the settlements. The Company previously recorded accruals for estimated probable losses in connection with the payment card networks' claims and the U.S. and Canadian customer class actions. In the third quarter of fiscal 2016, the Company recorded an accrual for estimated probable losses that it expects to incur in connection with the U.S. financial institution class actions, which remain ongoing. The Company's estimates are based on currently available information associated with each of these matters and may change as new information becomes available or circumstances change. In addition, the accrual for the U.S. financial institution class actions is based on the expectation of reaching a negotiated settlement with the claimants and not on any determination that it is probable that the Company would be found liable for the losses it has accrued were this matter to be litigated. Other claims have been and 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. In fiscal 2015, two purported shareholder derivative actions were filed in the District Court against certain present and former members of the Company's Board of Directors and executive officers. The Company was also named as a nominal defendant in both suits. In the first quarter of fiscal 2016, the two actions were consolidated into a single derivative complaint, which asserts claims for breaches of fiduciary duty, waste of corporate assets and violations of the Securities Exchange Act of 1934. The complaint seeks unspecified damages, equitable relief to reform the Company's corporate governance structure, restitution, disgorgement of profits, benefits and other compensation obtained by the defendants, and reasonable costs and expenses. 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 losses from these pending matters are reasonably possible, the Company is not able to estimate the costs, or range of costs, related to these matters (other than the U.S. financial institutions class actions discussed above) because the proceedings remain in the early stages, alleged damages have not been specified, 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 as of the end of the third quarter of fiscal 2016 . 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 third quarter and first nine months of fiscal 2016 , the Company recorded $23 million and $27 million , respectively, of pretax expenses related to the Data Breach. The Company did not record any related expected insurance proceeds in the third quarter and first nine months of fiscal 2016 . Since the Data Breach occurred, the Company has recorded $288 million of pretax gross expenses related to the Data Breach, partially offset by $100 million of expected insurance proceeds, for pretax net expenses of $188 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 the accruals for estimated probable losses that the Company has incurred or expects to incur in connection with the claims made by the payment card networks or their issuing banks, the U.S. and Canadian customer class actions, and the U.S. financial institution class actions. These expenses are included in Selling, General and Administrative expenses in the accompanying Consolidated Statements of Earnings. At October 30, 2016 , accrued liabilities and insurance receivable related to the Data Breach consisted of the following (amounts in millions): Accrued Liabilities Insurance Receivable Balance at January 31, 2016 $ (34 ) $ 70 (Expenses incurred) insurance receivable recorded in the first quarter of fiscal 2016 (2 ) — Payments made (received) in the first quarter of fiscal 2016 9 (15 ) Balance at May 1, 2016 $ (27 ) $ 55 (Expenses incurred) insurance receivable recorded in the second quarter of fiscal 2016 (2 ) — Payments made (received) in the second quarter of fiscal 2016 — (10 ) Balance at July 31, 2016 $ (29 ) $ 45 (Expenses incurred) insurance receivable recorded in the third quarter of fiscal 2016 (23 ) — Payments made (received) in the third quarter of fiscal 2016 2 (25 ) Balance at October 30, 2016 $ (50 ) $ 20 Future Costs The Company expects to incur additional legal and other professional service 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 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 for 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 October 30, 2016 , the Company had received initial payments totaling $80 million of insurance reimbursements under the fiscal 2014 policy, and expects to receive additional payments. In fiscal 2016 and 2015, the Company maintained $100 million of network security and privacy liability insurance coverage, above a $10 million deductible, to limit the Company's exposure to similar losses.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 30, 2016
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 October 30, 2016 and January 31, 2016 were as follows (amounts in millions): Fair Value at October 30, 2016 Using Fair Value at January 31, 2016 Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative agreements - assets $ — $ 258 $ — $ — $ 213 $ — Derivative agreements - liabilities — — — — (82 ) — Total $ — $ 258 $ — $ — $ 131 $ — 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 nine months of fiscal 2016 and 2015 were not material. During the third quarter of fiscal 2016, the Company completed its annual assessment of the recoverability of Goodwill for its U.S., Canada and Mexico reporting units. The fair values of these reporting units were estimated using the present value of expected future discounted cash flows through unobservable inputs (level 3) and the fair value exceeded the carrying value for each respective reporting unit. Accordingly, no Goodwill impairments were recorded for these reporting units. The aggregate fair value of the Company's senior notes, based on quoted market prices, was $24.6 billion and $21.8 billion at October 30, 2016 and January 31, 2016 , respectively, compared to a carrying value of $22.0 billion and $20.1 billion at October 30, 2016 and January 31, 2016 , respectively.

Basic And Diluted Weighted Aver

Basic And Diluted Weighted Average Common Shares	9 Months Ended
	Oct. 30, 2016
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 nine months ended October 30, 2016 and November 1, 2015 was as follows (amounts in millions): Three Months Ended Nine Months Ended October 30, November 1, October 30, November 1, Weighted average common shares 1,224 1,268 1,236 1,284 Effect of potentially dilutive securities: Stock plans 5 6 6 6 Diluted weighted average common shares 1,229 1,274 1,242 1,290 Stock plans consist of shares granted under the Company's employee stock plans. Options to purchase 1 million and 1 million shares of common stock for the three months ended October 30, 2016 and November 1, 2015 , respectively, and options to purchase 1 million and 1 million shares of common stock for the nine months ended October 30, 2016 and November 1, 2015 , respectively, were excluded from the computation of Diluted Earnings per Share because their effect would have been anti-dilutive.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policy)	9 Months Ended
	Oct. 30, 2016
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 U.S. 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 January 31, 2016 , 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory", which requires an entity to recognize the income tax consequences of an intercompany transfer of assets other than inventory when the transfer occurs. An entity will continue to recognize the income tax consequences of an intercompany transfer of inventory when the inventory is sold to a third party. This guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods, using a modified retrospective approach, and early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-16 will have on its Consolidated Financial Statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting", which makes several modifications to the accounting for employee share-based payment transactions, including the requirement to recognize the income tax effects of awards that vest or settle as income tax expense. This guidance also clarifies the presentation of certain components of share-based awards in the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. The Company does not believe that ASU No. 2016-09 will have a material impact on its Consolidated Financial Statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. This guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, using a modified retrospective approach, and early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-02 will have on its Consolidated Financial Statements and related disclosures. I n May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. ASU No. 2014-09 supersedes most existing revenue recognition guidance in U.S. GAAP, and it permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which delayed the effective date of ASU No. 2014-09 by one year. As a result, ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods. In fiscal 2016, the FASB issued guidance clarifying the interpretation of certain principles of ASU No. 2014-09. The Company is evaluating the effect that this revenue recognition guidance will have on its Consolidated Financial Statements and related disclosures. On February 1, 2016, the Company adopted ASU No. 2015-03, "Interest–Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs". Under ASU No. 2015-03, debt issuance costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Also on February 1, 2016, the Company early adopted ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". Under ASU No. 2015-17, deferred tax assets and liabilities are presented as noncurrent in a classified balance sheet.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Oct. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Loss Contingencies by Contingency	At October 30, 2016 , accrued liabilities and insurance receivable related to the Data Breach consisted of the following (amounts in millions): Accrued Liabilities Insurance Receivable Balance at January 31, 2016 $ (34 ) $ 70 (Expenses incurred) insurance receivable recorded in the first quarter of fiscal 2016 (2 ) — Payments made (received) in the first quarter of fiscal 2016 9 (15 ) Balance at May 1, 2016 $ (27 ) $ 55 (Expenses incurred) insurance receivable recorded in the second quarter of fiscal 2016 (2 ) — Payments made (received) in the second quarter of fiscal 2016 — (10 ) Balance at July 31, 2016 $ (29 ) $ 45 (Expenses incurred) insurance receivable recorded in the third quarter of fiscal 2016 (23 ) — Payments made (received) in the third quarter of fiscal 2016 2 (25 ) Balance at October 30, 2016 $ (50 ) $ 20

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 30, 2016
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 October 30, 2016 and January 31, 2016 were as follows (amounts in millions): Fair Value at October 30, 2016 Using Fair Value at January 31, 2016 Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative agreements - assets $ — $ 258 $ — $ — $ 213 $ — Derivative agreements - liabilities — — — — (82 ) — Total $ — $ 258 $ — $ — $ 131 $ —

Basic And Diluted Weighted Av16

Basic And Diluted Weighted Average Common Shares (Tables)	9 Months Ended
	Oct. 30, 2016
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 nine months ended October 30, 2016 and November 1, 2015 was as follows (amounts in millions): Three Months Ended Nine Months Ended October 30, November 1, October 30, November 1, Weighted average common shares 1,224 1,268 1,236 1,284 Effect of potentially dilutive securities: Stock plans 5 6 6 6 Diluted weighted average common shares 1,229 1,274 1,242 1,290

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Narrative) (Details) product in Thousands, ft² in Thousands	Oct. 30, 2016ft²product
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 | ft²	104
Average Garden Center Size [Member]
Accounting Policies [Line Items]
Approximate average square footage of warehouse-style stores | ft²	24

Recently Adopted Accounting P18

Recently Adopted Accounting Pronouncements (Narrative) (Details) $ in Millions	12 Months Ended
	Jan. 31, 2016USD ($)
Accounting Standards Update 2015-03 [Member] | Other Noncurrent Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact due to adoption of ASU	$ 99
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact due to adoption of ASU	(99)
Accounting Standards Update 2015-17 [Member] | Other Current Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact due to adoption of ASU	509
Accounting Standards Update 2015-17 [Member] | Other Noncurrent Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact due to adoption of ASU	(32)
Accounting Standards Update 2015-17 [Member] | Other Current Liabilities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact due to adoption of ASU	(2)
Accounting Standards Update 2015-17 [Member] | Other Noncurrent Liabilities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact due to adoption of ASU	$ (475)

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions	Sep. 06, 2016	Mar. 01, 2016	Feb. 12, 2016	Sep. 15, 2015	May 28, 2015	Oct. 30, 2016	Jan. 31, 2016
Debt Instrument [Line Items]
Debt Instrument, Redemption Price						100.00%
Debt Instrument, Change of Control, Redemption Price, Percent						101.00%
2.125% Senior Notes Due September 15, 2026 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 1,000
Debt Instrument, Interest Rate, Stated Percentage	2.125%
Debt Instrument, Maturity Date	Sep. 15, 2026
Debt Discount	$ 11
Debt Instrument, Frequency of Periodic Payment	semi-annually on March 15 and September 15
3.50% Senior Notes Due September 15, 2056 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 1,000
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Debt Instrument, Maturity Date	Sep. 15, 2056
Debt Discount	$ 19
Debt Instrument, Frequency of Periodic Payment	semi-annually on March 15 and September 15
September 2016 Issuance [Member]
Debt Instrument [Line Items]
Debt Discount	$ 30
Debt Issuance Costs, Gross	$ 16
2.00% Senior Notes Due April 1, 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 1,350
Debt Instrument, Interest Rate, Stated Percentage			2.00%
Debt Instrument, Maturity Date			Apr. 1, 2021
Debt Discount			$ 5
Debt Instrument, Frequency of Periodic Payment			semi-annually on April 1 and October 1
3.00% Senior Notes Due April 1, 2026 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 1,300
Debt Instrument, Interest Rate, Stated Percentage			3.00%
Debt Instrument, Maturity Date			Apr. 1, 2026
Debt Discount			$ 8
Debt Instrument, Frequency of Periodic Payment			semi-annually on April 1 and October 1
February 2016 Issuance [Member]
Debt Instrument [Line Items]
Debt Discount			$ 13
Debt Issuance Costs, Gross			17
February 2016 Issuance [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Derivative, Notional Amount							$ 1,000
Loss on forward starting interest rate swaps			89
Additional 4.25% Senior Notes Due April 1, 2046 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 350
Debt Instrument, Interest Rate, Stated Percentage			4.25%
Debt Instrument, Maturity Date			Apr. 1, 2046
Debt Premium			$ 2
Debt Instrument, Frequency of Periodic Payment			semi-annually on April 1 and October 1
4.25% Senior Notes Due April 1, 2046 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 1,600		$ 1,250
Debt Instrument, Interest Rate, Stated Percentage					4.25%
Debt Instrument, Maturity Date			Apr. 1, 2046		Apr. 1, 2046
5.40% Senior Notes Due March 1, 2016 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		5.40%
Debt Instrument, Maturity Date		Mar. 1, 2016
Floating Rate Senior Notes Due September 15, 2017 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 500
Debt Instrument, Maturity Date				Sep. 15, 2017

Commitments and Contingencies20

Commitments and Contingencies (Details) $ in Millions	3 Months Ended			9 Months Ended	12 Months Ended		27 Months Ended
	Oct. 30, 2016USD ($)derivativeactions	Jul. 31, 2016USD ($)	May 01, 2016USD ($)	Oct. 30, 2016USD ($)derivativeactions	Jan. 31, 2016USD ($)derivativeactions	Feb. 01, 2015USD ($)	Oct. 30, 2016USD ($)derivativeactions
Insurance [Abstract]
Network Security Insurance Coverage				$ 100	$ 100	$ 100
Network Security Insurance Deductible				10	10	$ 7.5
Data Breach [Member]
Loss Contingency Accrual [Roll Forward]
Data Breach, Accrued Liabilities, Beginning Balance	$ (29)	$ (27)	$ (34)	(34)
Data Breach, Accrued Liabilities, Expenses Incurred	(23)	(2)	(2)	(27)			$ (288)
Data Breach, Accrued Liabilities, Payments Made	2		9
Data Breach, Accrued Liabilities, Ending Balance	(50)	(29)	(27)	(50)	(34)		(50)
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward]
Data Breach, Insurance Receivable, Beginning Balance	45	55	70	70
Data Breach, Insurance Receivable, Insurance Receivable Recorded	0	0					100
Data Breach, Insurance Receivable, Payments Received	(25)	(10)	(15)				(80)
Data Breach, Insurance Receivable, Ending Balance	$ 20	$ 45	$ 55	$ 20	$ 70		$ 20
Loss Contingency, Information about Litigation Matters [Abstract]
Data Breach, Number of Actions Filed		57
Number Of Purported Shareholder Derivative Actions Filed | derivativeactions	1			1	2		1
Data Breach, Expenses Incurred Net of Insurance Receivable Recorded							$ 188

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Billions	Oct. 30, 2016	Jan. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 22	$ 20.1
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	$ 24.6	$ 21.8

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	Oct. 30, 2016	Jan. 31, 2016
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	258	213
Derivative agreements - liabilities	0	(82)
Total	258	131
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 Av23

Basic And Diluted Weighted Average Common Shares (Narrative) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2016	Nov. 01, 2015	Oct. 30, 2016	Nov. 01, 2015
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	1	1	1	1

Basic and Diluted Weighted Av24

Basic and Diluted Weighted Average Common Shares (Reconciliation Of Basic To Diluted Weighted Average Common Shares) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2016	Nov. 01, 2015	Oct. 30, 2016	Nov. 01, 2015
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Weighted average common shares	1,224	1,268	1,236	1,284
Effect of potentially dilutive securities: Stock plans	5	6	6	6
Diluted weighted average common shares	1,229	1,274	1,242	1,290