Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 30, 2017 | May 16, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | HOME DEPOT INC | |
Entity Central Index Key | 354,950 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,195,554,970 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2017 | Jan. 29, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 3,565 | $ 2,538 |
Receivables, net | 2,164 | 2,029 |
Merchandise Inventories | 13,609 | 12,549 |
Other Current Assets | 558 | 608 |
Total Current Assets | 19,896 | 17,724 |
Property and Equipment, at cost | 40,656 | 40,426 |
Less Accumulated Depreciation and Amortization | 18,867 | 18,512 |
Net Property and Equipment | 21,789 | 21,914 |
Goodwill | 2,095 | 2,093 |
Other Assets | 1,164 | 1,235 |
Total Assets | 44,944 | 42,966 |
Current Liabilities: | ||
Short-Term Debt | 0 | 710 |
Accounts Payable | 9,138 | 7,000 |
Accrued Salaries and Related Expenses | 1,353 | 1,484 |
Sales Taxes Payable | 710 | 508 |
Deferred Revenue | 1,832 | 1,669 |
Income Taxes Payable | 904 | 25 |
Current Installments of Long-Term Debt | 544 | 542 |
Other Accrued Expenses | 1,957 | 2,195 |
Total Current Liabilities | 16,438 | 14,133 |
Long-Term Debt, excluding current installments | 22,393 | 22,349 |
Other Long-Term Liabilities | 1,916 | 1,855 |
Deferred Income Taxes | 235 | 296 |
Total Liabilities | 40,982 | 38,633 |
STOCKHOLDERS' EQUITY | ||
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.778 billion shares at April 30, 2017 and 1.776 billion shares at January 29, 2017; outstanding: 1.197 billion shares at April 30, 2017 and 1.203 billion shares at January 29, 2017 | 89 | 88 |
Paid-In Capital | 9,779 | 9,787 |
Retained Earnings | 36,461 | 35,519 |
Accumulated Other Comprehensive Loss | (923) | (867) |
Treasury Stock, at cost, 581 million shares at April 30, 2017 and 573 million shares at January 29, 2017 | (41,444) | (40,194) |
Total Stockholders’ Equity | 3,962 | 4,333 |
Total Liabilities and Stockholders' Equity | $ 44,944 | $ 42,966 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Apr. 30, 2017 | Jan. 29, 2017 |
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 | 1,778 | 1,776 |
Common Stock, shares outstanding | 1,197 | 1,203 |
Treasury Stock, shares | 581 | 573 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Income Statement [Abstract] | ||
NET SALES | $ 23,887 | $ 22,762 |
Cost of Sales | 15,733 | 14,971 |
GROSS PROFIT | 8,154 | 7,791 |
Operating Expenses: | ||
Selling, General and Administrative | 4,361 | 4,281 |
Depreciation and Amortization | 444 | 433 |
Total Operating Expenses | 4,805 | 4,714 |
OPERATING INCOME | 3,349 | 3,077 |
Interest and Other (Income) Expense: | ||
Interest and Investment Income | (13) | (7) |
Interest Expense | 254 | 244 |
Interest and Other, net | 241 | 237 |
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 3,108 | 2,840 |
Provision for Income Taxes | 1,094 | 1,037 |
NET EARNINGS | $ 2,014 | $ 1,803 |
Weighted Average Common Shares | 1,198 | 1,247 |
BASIC EARNINGS PER SHARE | $ 1.68 | $ 1.45 |
Diluted Weighted Average Common Shares | 1,204 | 1,252 |
DILUTED EARNINGS PER SHARE | $ 1.67 | $ 1.44 |
Dividends Declared per Share | $ 0.89 | $ 0.69 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net Earnings | $ 2,014 | $ 1,803 |
Other Comprehensive (Loss) Income: | ||
Foreign Currency Translation Adjustments | (30) | 309 |
Cash Flow Hedges, net of tax | (25) | 11 |
Other Comprehensive Income (Loss) Other Before Tax | (1) | 0 |
Total Other Comprehensive (Loss) Income | (56) | 320 |
COMPREHENSIVE INCOME | $ 1,958 | $ 2,123 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Earnings | $ 2,014 | $ 1,803 |
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 505 | 486 |
Stock-Based Compensation Expense | 81 | 72 |
Changes in Assets and Liabilities: | ||
Receivables, net | (145) | (57) |
Merchandise Inventories | (1,051) | (1,319) |
Other Current Assets | 51 | 44 |
Accounts Payable and Accrued Expenses | 2,062 | 1,828 |
Deferred Revenue | 166 | 30 |
Income Taxes Payable | 877 | 844 |
Deferred Income Taxes | (65) | (78) |
Other | 69 | (17) |
Net Cash Provided by Operating Activities | 4,564 | 3,636 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital Expenditures | (458) | (325) |
Proceeds from Sales of Property and Equipment | 13 | 4 |
Net Cash Used in Investing Activities | (445) | (321) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of Short-Term Debt, net | (710) | (350) |
Proceeds from Long-Term Debt, net of discounts | 0 | 2,989 |
Repayments of Long-Term Debt | (11) | (3,012) |
Repurchases of Common Stock | (1,289) | (1,157) |
Proceeds from Sales of Common Stock | 31 | 29 |
Cash Dividends Paid to Stockholders | (1,069) | (862) |
Other Financing Activities | (33) | 25 |
Net Cash Used in Financing Activities | (3,081) | (2,338) |
Change in Cash and Cash Equivalents | 1,038 | 977 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (11) | 64 |
Cash and Cash Equivalents at Beginning of Period | 2,538 | 2,216 |
Cash and Cash Equivalents at End of Period | $ 3,565 | $ 3,257 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated Financial Statements of The Home Depot, Inc. and Subsidiaries (the "Company") 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. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, 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 29, 2017 , as filed with the Securities and Exchange Commission on March 23, 2017 (the "2016 Form 10-K"). Valuation Reserves As of April 30, 2017 and January 29, 2017 , the valuation allowances for Merchandise Inventories and uncollectible Receivables were not material. Recent Accounting Pronouncements There have been no material changes to the Company’s position regarding recent accounting pronouncements pending adoption as disclosed in the 2016 Form 10-K, except as set forth below. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In addition, ASU No. 2014-09 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or modified retrospective transition method. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company continues to evaluate the effect that ASU No. 2014-09 will have on its Consolidated Financial Statements and related disclosures and controls. Based on its preliminary assessment, the Company has determined that the adoption of ASU No. 2014-09 could impact the timing of revenue recognition through its services, gift card and various incentive programs. ASU No. 2014-09 will impact the Company’s method of recognizing gift card breakage income, which is currently recognized based upon historical redemption patterns. ASU No. 2014-09 requires gift card breakage income to be recognized in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage. The Company is also evaluating the principal versus agent considerations as it relates to certain arrangements with third parties that could impact the presentation of gross or net revenue reporting. Other areas which could be impacted may be identified as the Company continues its evaluation of ASU No. 2014-09. The Company plans to adopt ASU No. 2014-09 on January 29, 2018 using the modified retrospective transition method. Recent accounting pronouncements pending adoption not discussed above or in the 2016 Form 10-K are either not applicable or will not have or are not expected to have a material impact on the Company. |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2017 | |
Prospective Adoption of New Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS On January 30, 2017, the Company adopted ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". Upon adoption of this update, all excess tax benefits or deficiencies related to share-based payment awards are recognized in the provision for income taxes in the period in which they occur. Previously these amounts were reflected in paid-in capital. In addition, upon adoption these amounts are classified as an operating activity in the consolidated statements of cash flows in the period in which they occur. Previously, these amounts were reflected as a financing activity. Cash paid by the Company to tax authorities when directly withholding shares for tax withholding purposes will continue to be classified as a financing activity in the consolidated statements of cash flows. Stock-based compensation expense will continue to reflect estimated forfeitures of share-based awards. The Company has adopted the applicable provisions of ASU No. 2016-09 prospectively. As a result of the adoption of ASU No. 2016-09, the Company recognized $65 million of excess tax benefits related to share-based payment awards in its provision for income taxes during the first quarter of fiscal 2017. The recognition of these benefits contributed $0.05 to Diluted Earnings per Share. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The carrying amount of Cash and Cash Equivalents, Receivables and Accounts Payable reported in the Company's Consolidated Balance Sheets approximates fair value due to their short-term maturities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the assets and liabilities, if any, of the Company that are measured at fair value on a recurring basis (amounts in millions): Fair Value at April 30, 2017 Using Fair Value at January 29, 2017 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative agreements - assets $ — $ 221 $ — $ — $ 271 $ — The Company uses derivative financial instruments from time to time in the management of its interest rate exposure on certain Long-Term Debt and its exposure to foreign currency fluctuations. 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 three months of fiscal 2017 and 2016 were not material. The aggregate fair and carrying values of the Company's senior notes were as follows (amounts in billions): April 30, 2017 January 29, 2017 Fair Value (Level 1) Carrying Value Fair Value (Level 1) Carrying Value Senior notes $ 24.0 $ 22.0 $ 23.6 $ 22.0 |
Basic And Diluted Weighted Aver
Basic And Diluted Weighted Average Common Shares | 3 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Weighted Average Common Shares | BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES The following table present the reconciliation of basic to diluted weighted average common shares as well as the effect of anti-dilutive securities excluded from diluted weighted average common shares (amounts in millions): Three Months Ended April 30, May 1, Basic Weighted Average Common Shares 1,198 1,247 Effect of potentially dilutive securities - stock plans 6 5 Diluted Weighted Average Common Shares 1,204 1,252 Effect of anti-dilutive securities excluded from diluted weighted average common shares 1 1 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2017 | |
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"). Since the end of fiscal 2016, there have been no material changes with respect to the Data Breach, except as discussed below. As reported in the 2016 Form 10-K, in the first quarter of fiscal 2017, the Company agreed to settlement terms that, upon approval of the court, will resolve and dismiss the claims asserted in the financial institutions class actions. In addition, in the first quarter of fiscal 2017, the parties to the two purported shareholder derivative actions agreed to settlement terms that, upon approval of the court, will resolve and dismiss the claims asserted in those actions. As of the end of the first quarter of fiscal 2017, the Company has resolved the most significant claims relating to the Data Breach, and there were no material changes during the first quarter to the Company’s loss contingency assessment relating to any remaining matters. The Company does not believe that the ultimate amounts paid with respect to any remaining matters will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows in future periods. |
Summary of Significant Accoun12
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements of The Home Depot, Inc. and Subsidiaries (the "Company") 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. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, 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 29, 2017 , as filed with the Securities and Exchange Commission on March 23, 2017 (the "2016 Form 10-K"). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no material changes to the Company’s position regarding recent accounting pronouncements pending adoption as disclosed in the 2016 Form 10-K, except as set forth below. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In addition, ASU No. 2014-09 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or modified retrospective transition method. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company continues to evaluate the effect that ASU No. 2014-09 will have on its Consolidated Financial Statements and related disclosures and controls. Based on its preliminary assessment, the Company has determined that the adoption of ASU No. 2014-09 could impact the timing of revenue recognition through its services, gift card and various incentive programs. ASU No. 2014-09 will impact the Company’s method of recognizing gift card breakage income, which is currently recognized based upon historical redemption patterns. ASU No. 2014-09 requires gift card breakage income to be recognized in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage. The Company is also evaluating the principal versus agent considerations as it relates to certain arrangements with third parties that could impact the presentation of gross or net revenue reporting. Other areas which could be impacted may be identified as the Company continues its evaluation of ASU No. 2014-09. The Company plans to adopt ASU No. 2014-09 on January 29, 2018 using the modified retrospective transition method. On January 30, 2017, the Company adopted ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". Upon adoption of this update, all excess tax benefits or deficiencies related to share-based payment awards are recognized in the provision for income taxes in the period in which they occur. Previously these amounts were reflected in paid-in capital. In addition, upon adoption these amounts are classified as an operating activity in the consolidated statements of cash flows in the period in which they occur. Previously, these amounts were reflected as a financing activity. Cash paid by the Company to tax authorities when directly withholding shares for tax withholding purposes will continue to be classified as a financing activity in the consolidated statements of cash flows. Stock-based compensation expense will continue to reflect estimated forfeitures of share-based awards. The Company has adopted the applicable provisions of ASU No. 2016-09 prospectively |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the assets and liabilities, if any, of the Company that are measured at fair value on a recurring basis (amounts in millions): Fair Value at April 30, 2017 Using Fair Value at January 29, 2017 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative agreements - assets $ — $ 221 $ — $ — $ 271 $ — |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The aggregate fair and carrying values of the Company's senior notes were as follows (amounts in billions): April 30, 2017 January 29, 2017 Fair Value (Level 1) Carrying Value Fair Value (Level 1) Carrying Value Senior notes $ 24.0 $ 22.0 $ 23.6 $ 22.0 |
Basic And Diluted Weighted Av14
Basic And Diluted Weighted Average Common Shares (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table present the reconciliation of basic to diluted weighted average common shares as well as the effect of anti-dilutive securities excluded from diluted weighted average common shares (amounts in millions): Three Months Ended April 30, May 1, Basic Weighted Average Common Shares 1,198 1,247 Effect of potentially dilutive securities - stock plans 6 5 Diluted Weighted Average Common Shares 1,204 1,252 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Effect of anti-dilutive securities excluded from diluted weighted average common shares 1 1 |
Recently Adopted Accounting P15
Recently Adopted Accounting Pronouncements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Item Effected [Line Items] | ||
Net Earnings | $ 2,014 | $ 1,803 |
Diluted Earnings per Share | $ 1.67 | $ 1.44 |
Accounting Standards Update 2016-09 [Member] | ||
Item Effected [Line Items] | ||
Net Earnings | $ 65 | |
Diluted Earnings per Share | $ 0.05 |
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 | Apr. 30, 2017 | Jan. 29, 2017 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | 221 | 271 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | $ 0 | $ 0 |
Fair Value Measurements (Asse17
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Billions | Apr. 30, 2017 | Jan. 29, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of senior notes | $ 22 | $ 22 |
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 | $ 23.6 |
Basic And Diluted Weighted Av18
Basic And Diluted Weighted Average Common Shares (Reconciliation Of Basic To Diluted Weighted Average Common Shares) (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Reconciliation of Basic to Diluted Weighted Average Common Shares: | ||
Weighted average common shares | 1,198 | 1,247 |
Effect of potentially dilutive securities: Stock plans | 6 | 5 |
Diluted weighted average common shares | 1,204 | 1,252 |
Basic And Diluted Weighted Av19
Basic And Diluted Weighted Average Common Shares (Schedule Of Antidilutive Securities Excluded From Computation Of Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
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 |