Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 29, 2017 | Nov. 14, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 29, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 1,167,748,619 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 29, 2017 | Jan. 29, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 3,549 | $ 2,538 |
Receivables, net | 2,166 | 2,029 |
Merchandise Inventories | 13,419 | 12,549 |
Other Current Assets | 548 | 608 |
Total Current Assets | 19,682 | 17,724 |
Property and Equipment, at cost | 41,614 | 40,426 |
Less Accumulated Depreciation and Amortization | 19,654 | 18,512 |
Net Property and Equipment | 21,960 | 21,914 |
Goodwill | 2,217 | 2,093 |
Other Assets | 1,164 | 1,235 |
Total Assets | 45,023 | 42,966 |
Current Liabilities: | ||
Short-Term Debt | 125 | 710 |
Accounts Payable | 8,570 | 7,000 |
Accrued Salaries and Related Expenses | 1,488 | 1,484 |
Sales Taxes Payable | 629 | 508 |
Deferred Revenue | 1,788 | 1,669 |
Income Taxes Payable | 139 | 25 |
Current Installments of Long-Term Debt | 1,198 | 542 |
Other Accrued Expenses | 2,065 | 2,195 |
Total Current Liabilities | 16,002 | 14,133 |
Long-Term Debt, excluding current installments | 24,266 | 22,349 |
Other Long-Term Liabilities | 1,968 | 1,855 |
Deferred Income Taxes | 244 | 296 |
Total Liabilities | 42,480 | 38,633 |
STOCKHOLDERS' EQUITY | ||
Common Stock, par value $0.05; authorized: 10,000 shares; issued: 1,779 shares at October 29, 2017 and 1,776 shares at January 29, 2017; outstanding: 1,168 shares at October 29, 2017 and 1,203 shares at January 29, 2017 | 89 | 88 |
Paid-In Capital | 9,883 | 9,787 |
Retained Earnings | 39,193 | 35,519 |
Accumulated Other Comprehensive Loss | (629) | (867) |
Treasury Stock, at cost, 611 shares at October 29, 2017 and 573 shares at January 29, 2017 | (45,993) | (40,194) |
Total Stockholders’ Equity | 2,543 | 4,333 |
Total Liabilities and Stockholders' Equity | $ 45,023 | $ 42,966 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Oct. 29, 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 | 1,779 | 1,776 |
Common Stock, shares outstanding | 1,168 | 1,203 |
Treasury Stock, shares | 611 | 573 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Income Statement [Abstract] | ||||
NET SALES | $ 25,026 | $ 23,154 | $ 77,021 | $ 72,388 |
Cost of Sales | 16,378 | 15,112 | 50,758 | 47,628 |
GROSS PROFIT | 8,648 | 8,042 | 26,263 | 24,760 |
Operating Expenses: | ||||
Selling, General and Administrative | 4,514 | 4,280 | 13,424 | 12,949 |
Depreciation and Amortization | 454 | 442 | 1,347 | 1,311 |
Total Operating Expenses | 4,968 | 4,722 | 14,771 | 14,260 |
OPERATING INCOME | 3,680 | 3,320 | 11,492 | 10,500 |
Interest and Other (Income) Expense: | ||||
Interest and Investment Income | (22) | (10) | (51) | (25) |
Interest Expense | 269 | 246 | 788 | 726 |
Interest and Other, net | 247 | 236 | 737 | 701 |
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 3,433 | 3,084 | 10,755 | 9,799 |
Provision for Income Taxes | 1,268 | 1,115 | 3,904 | 3,586 |
NET EARNINGS | $ 2,165 | $ 1,969 | $ 6,851 | $ 6,213 |
Basic Weighted Average Common Shares | 1,168 | 1,224 | 1,184 | 1,236 |
BASIC EARNINGS PER SHARE | $ 1.85 | $ 1.61 | $ 5.79 | $ 5.03 |
Diluted Weighted Average Common Shares | 1,174 | 1,229 | 1,190 | 1,242 |
DILUTED EARNINGS PER SHARE | $ 1.84 | $ 1.60 | $ 5.76 | $ 5 |
Dividends Declared per Share | $ 0.89 | $ 0.69 | $ 2.67 | $ 2.07 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET EARNINGS | $ 2,165 | $ 1,969 | $ 6,851 | $ 6,213 |
Other Comprehensive Income (Loss): | ||||
Foreign Currency Translation Adjustments | (145) | (125) | 244 | (8) |
Cash Flow Hedges, net of tax | (2) | 21 | (5) | 23 |
Other | 0 | (1) | (1) | 0 |
Total Other Comprehensive Income (Loss) | (147) | (105) | 238 | 15 |
COMPREHENSIVE INCOME | $ 2,018 | $ 1,864 | $ 7,089 | $ 6,228 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2017 | Oct. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Earnings | $ 6,851 | $ 6,213 |
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 1,533 | 1,474 |
Stock-Based Compensation Expense | 214 | 199 |
Changes in Assets and Liabilities, net of acquisition effects: | ||
Receivables, net | (95) | (108) |
Merchandise Inventories | (776) | (1,453) |
Other Current Assets | 75 | 36 |
Accounts Payable and Accrued Expenses | 1,597 | 1,449 |
Deferred Revenue | 115 | 64 |
Income Taxes Payable | 113 | 184 |
Deferred Income Taxes | (76) | (131) |
Other, net | 190 | (8) |
Net Cash Provided by Operating Activities | 9,741 | 7,919 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital Expenditures | (1,354) | (1,145) |
Payments for Business Acquired, net | (260) | 0 |
Proceeds from Sales of Property and Equipment | 38 | 30 |
Net Cash Used in Investing Activities | (1,576) | (1,115) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of Short-Term Debt, net | (585) | (350) |
Proceeds from Long-Term Debt, net of discounts | 2,991 | 4,959 |
Repayments of Long-Term Debt | (534) | (3,034) |
Repurchases of Common Stock | (6,067) | (4,535) |
Proceeds from Sales of Common Stock | 157 | 136 |
Cash Dividends Paid to Stockholders | (3,174) | (2,567) |
Other Financing Activities | (41) | (33) |
Net Cash Used in Financing Activities | (7,253) | (5,424) |
Change in Cash and Cash Equivalents | 912 | 1,380 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 99 | (7) |
Cash and Cash Equivalents at Beginning of Period | 2,538 | 2,216 |
Cash and Cash Equivalents at End of Period | $ 3,549 | $ 3,589 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 29, 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 October 29, 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 August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" which amends the hedge accounting recognition and presentation requirements. ASU No. 2017-12 eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges and allows the entity to apply the shortcut method to partial-term fair value hedges of interest rate risk. ASU No. 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted in any interim period after issuance of this update. The Company is evaluating the effect that ASU No. 2017-12 will have on its Consolidated Financial Statements and related disclosures. In May 2014, the FASB issued a new standard related to revenue recognition. Under ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective 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. The Company has determined that the adoption of 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. 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 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 | 9 Months Ended |
Oct. 29, 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 $7 million and $92 million of excess tax benefits related to share-based payment awards in its Provision for Income Taxes during the third quarter and first nine months of fiscal 2017, respectively. The recognition of these benefits contributed $0.01 and $0.08 to Diluted Earnings per Share for the third quarter and first nine months of fiscal 2017, respectively. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 29, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT In September 2017, the Company issued $1.0 billion of 2.80% senior notes due September 14, 2027 (the "2027 notes") at a discount of $3 million. Interest on the 2027 notes is due semi-annually on March 14 and September 14 of each year, beginning March 14, 2018. The $3 million discount associated with the 2027 notes is being amortized over the term of the notes using the effective interest rate method. Issuance costs of $6 million associated with the 2027 notes were recorded as a direct deduction to the carrying value of the senior notes and are being amortized over the term of the notes. The net proceeds of the 2027 notes were used to repay the Company's floating rate notes due September 15, 2017 and for general corporate purposes, including repurchases of the Company's common stock. In June 2017, the Company issued $500 million of floating rate senior notes due June 5, 2020 (the "2020 floating rate notes"); $750 million of 1.80% senior notes due June 5, 2020 (the "2020 notes") at a discount of $1 million ; and $750 million of 3.90% senior notes due June 15, 2047 (the "2047 notes") at a discount of $5 million (together, the "June 2017 issuance"). The 2020 floating rate notes bear interest at a variable rate determined quarterly equal to the three-month London Interbank Offered Rate ("LIBOR") plus 15 basis points. Interest on the 2020 floating rate notes is due quarterly on March 5, June 5, September 5, and December 5 of each year, beginning September 5, 2017. Interest on the 2020 notes is due semi-annually on June 5 and December 5 of each year, beginning December 5, 2017. Interest on the 2047 notes is due semi-annually on June 15 and December 15 of each year, beginning December 15, 2017. Interest payments for the 2020 notes and 2047 notes will include accrued interest from and including June 5, 2017. The $6 million discount associated with the 2020 notes and the 2047 notes is being amortized over the term of the notes using the effective interest rate method. Issuance costs of $12 million associated with the June 2017 issuance were recorded as a direct deduction to the carrying value of the senior notes and are being amortized over the term of the notes. The net proceeds of the June 2017 issuance were used for general corporate purposes, including repurchases of the Company's common stock. All of the Company's senior notes, other than its outstanding floating rate 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, 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. The indentures governing the notes contain various customary covenants; however, none are expected to impact the Company's liquidity or capital resources. Also in September 2017, we entered into an interest rate swap agreement with a notional amount of $250 million , accounted for as a fair value hedge, to hedge against changes in the fair value of the 2027 notes attributable to changes in the designated benchmark interest rate. |
Accelerated Share Repurchase Ag
Accelerated Share Repurchase Agreements | 9 Months Ended |
Oct. 29, 2017 | |
Accelerated Share Repurchase Agreements [Abstract] | |
Accelerated Share Repurchase Agreements | ACCELERATED SHARE REPURCHASE AGREEMENTS The Company enters into Accelerated Share Repurchase ("ASR") agreements from time to time with third-party financial institutions to repurchase shares of the Company’s common stock. Under an 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 ASR 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 nine months of fiscal 2017. Each of these agreements followed the structure outlined above (amounts in millions): Agreement Date Settlement Date Agreement Amount Initial Shares Delivered Additional Shares Delivered Total Shares Delivered Q2 2017 Q2 2017 $ 1,650 9.7 1.1 10.8 Q3 2017 (1) Q4 2017 $ 1,200 6.7 0.7 7.4 ————— (1) The fair market value of the initial 6.7 million shares on the date of delivery was $1,053 million and is included in Treasury Stock in the accompanying Consolidated Balance Sheets as of October 29, 2017. The remaining $147 million is included in Paid-In Capital in the accompanying Consolidated Balance Sheets as of October 29, 2017. The ASR agreement terminated on November 17, 2017, at which time the Company became contractually entitled to receive an additional 0.7 million shares upon settlement. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 29, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The carrying amount of Cash and Cash Equivalents, Receivables and Accounts Payable as 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: Fair Value at October 29, 2017 Using Fair Value at January 29, 2017 Using amounts in millions 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 $ — $ 189 $ — $ — $ 271 $ — Derivative agreements - liabilities — (9 ) — — — — Total $ — $ 180 $ — $ — $ 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 nine months of fiscal 2017 and 2016 were not material. During the third quarter of fiscal 2017, the Company completed its annual assessment of the recoverability of Goodwill for its U.S., Canada and Mexico reporting units. The Company performed qualitative assessments, concluding that the fair value of the reporting units was not more likely than not less than the carrying value. Accordingly, no Goodwill impairments were recorded for these reporting units. The aggregate fair values and carrying values of the Company's senior notes were as follows: October 29, 2017 January 29, 2017 amounts in millions Fair Value (Level 1) Carrying Value Fair Value (Level 1) Carrying Value Senior notes $ 26,650 $ 24,482 $ 23,620 $ 22,013 |
Basic And Diluted Weighted Aver
Basic And Diluted Weighted Average Common Shares | 9 Months Ended |
Oct. 29, 2017 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Weighted Average Common Shares | BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES The following table presents 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: Three Months Ended Nine Months Ended amounts in millions October 29, October 30, October 29, October 30, Basic Weighted Average Common Shares 1,168 1,224 1,184 1,236 Effect of potentially dilutive securities 6 5 6 6 Diluted Weighted Average Common Shares 1,174 1,229 1,190 1,242 Effect of anti-dilutive securities excluded from Diluted Weighted Average Common Shares — 1 1 1 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 29, 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 purported shareholder derivative actions agreed to settlement terms that, upon approval of the court, will resolve and dismiss the claims asserted in those actions. In the third quarter of fiscal 2017, both of these settlement agreements were approved by the court. 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 nine months of fiscal 2017 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 Accoun14
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Oct. 29, 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 August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" which amends the hedge accounting recognition and presentation requirements. ASU No. 2017-12 eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges and allows the entity to apply the shortcut method to partial-term fair value hedges of interest rate risk. ASU No. 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted in any interim period after issuance of this update. The Company is evaluating the effect that ASU No. 2017-12 will have on its Consolidated Financial Statements and related disclosures. In May 2014, the FASB issued a new standard related to revenue recognition. Under ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective 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. The Company has determined that the adoption of 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. 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 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 |
Accelerated Share Repurchase 15
Accelerated Share Repurchase Agreements (Tables) | 9 Months Ended |
Oct. 29, 2017 | |
Accelerated Share Repurchase Agreements [Abstract] | |
Accelerated Share Repurchase Agreements | The following table provides the terms for each of the ASR agreements the Company entered into during the first nine months of fiscal 2017. Each of these agreements followed the structure outlined above (amounts in millions): Agreement Date Settlement Date Agreement Amount Initial Shares Delivered Additional Shares Delivered Total Shares Delivered Q2 2017 Q2 2017 $ 1,650 9.7 1.1 10.8 Q3 2017 (1) Q4 2017 $ 1,200 6.7 0.7 7.4 ————— (1) The fair market value of the initial 6.7 million shares on the date of delivery was $1,053 million and is included in Treasury Stock in the accompanying Consolidated Balance Sheets as of October 29, 2017. The remaining $147 million is included in Paid-In Capital in the accompanying Consolidated Balance Sheets as of October 29, 2017. The ASR agreement terminated on November 17, 2017, at which time the Company became contractually entitled to receive an additional 0.7 million shares upon settlement. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 29, 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: Fair Value at October 29, 2017 Using Fair Value at January 29, 2017 Using amounts in millions 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 $ — $ 189 $ — $ — $ 271 $ — Derivative agreements - liabilities — (9 ) — — — — Total $ — $ 180 $ — $ — $ 271 $ — |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The aggregate fair values and carrying values of the Company's senior notes were as follows: October 29, 2017 January 29, 2017 amounts in millions Fair Value (Level 1) Carrying Value Fair Value (Level 1) Carrying Value Senior notes $ 26,650 $ 24,482 $ 23,620 $ 22,013 |
Basic And Diluted Weighted Av17
Basic And Diluted Weighted Average Common Shares (Tables) | 9 Months Ended |
Oct. 29, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table presents 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: Three Months Ended Nine Months Ended amounts in millions October 29, October 30, October 29, October 30, Basic Weighted Average Common Shares 1,168 1,224 1,184 1,236 Effect of potentially dilutive securities 6 5 6 6 Diluted Weighted Average Common Shares 1,174 1,229 1,190 1,242 Effect of anti-dilutive securities excluded from Diluted Weighted Average Common Shares — 1 1 1 |
Recently Adopted Accounting P18
Recently Adopted Accounting Pronouncements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Item Effected [Line Items] | ||||
Net Earnings | $ 2,165 | $ 1,969 | $ 6,851 | $ 6,213 |
Diluted Earnings per Share | $ 1.84 | $ 1.60 | $ 5.76 | $ 5 |
Accounting Standards Update 2016-09 [Member] | ||||
Item Effected [Line Items] | ||||
Net Earnings | $ 7 | $ 92 | ||
Diluted Earnings per Share | $ 0.01 | $ 0.08 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Sep. 14, 2017 | Jun. 05, 2017 | Oct. 29, 2017 |
Debt Instrument [Line Items] | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
Debt Instrument, Change of Control, Redemption Price, Percent | 101.00% | ||
2.80% Senior Notes Due September 14, 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | ||
Debt Instrument, Maturity Date | Sep. 14, 2027 | ||
Debt Instrument, Unamortized Discount | $ 3 | ||
Debt Issuance Costs, Gross | $ 6 | ||
Debt Instrument, Frequency of Periodic Payment | semi-annually on March 14 and September 14 | ||
Floating Rate Senior Notes Due June 5, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | ||
Debt Instrument, Maturity Date | Jun. 5, 2020 | ||
Debt Instrument, Frequency of Periodic Payment | quarterly on March 5, June 5, September 5, and December 5 | ||
Floating Rate Senior Notes Due June 5, 2020 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.15% | ||
1.80% Senior Notes Due June 5, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 750 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.80% | ||
Debt Instrument, Maturity Date | Jun. 5, 2020 | ||
Debt Instrument, Unamortized Discount | $ 1 | ||
Debt Instrument, Frequency of Periodic Payment | semi-annually on June 5 and December 5 | ||
3.90% Senior Notes Due June 15, 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 750 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | ||
Debt Instrument, Maturity Date | Jun. 15, 2047 | ||
Debt Instrument, Unamortized Discount | $ 5 | ||
Debt Instrument, Frequency of Periodic Payment | semi-annually on June 15 and December 15 | ||
June 2017 Issuance [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Unamortized Discount | $ 6 | ||
Debt Issuance Costs, Gross | $ 12 |
Long-Term Debt Debt (Derivative
Long-Term Debt Debt (Derivatives) (Narrative) (Details) $ in Millions | Sep. 14, 2017USD ($) |
Interest Rate Swap [Member] | 2.80% Senior Notes Due September 14, 2027 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 250 |
Accelerated Share Repurchase 21
Accelerated Share Repurchase Agreements (Details) - USD ($) shares in Millions, $ in Millions | Nov. 20, 2017 | Jul. 30, 2017 | Jul. 11, 2017 | Nov. 20, 2017 | Nov. 16, 2017 | Jul. 30, 2017 | Oct. 29, 2017 | Oct. 29, 2017 | Oct. 30, 2016 | Jan. 29, 2017 |
Accelerated Share Repurchases [Line Items] | ||||||||||
Repurchases of Common Stock | $ 6,067 | $ 4,535 | ||||||||
Treasury Stock Value | $ 45,993 | 45,993 | $ 40,194 | |||||||
Paid-In Capital | 9,883 | 9,883 | $ 9,787 | |||||||
Q2 Accelerate Share Repurchase Agreement [Member] | ||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||
Repurchases of Common Stock | $ 1,650 | |||||||||
Treasury Stock Shares Acquired | 1.1 | 9.7 | 10.8 | |||||||
Q3 Accelerate Share Repurchase Agreement [Member] | ||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||
Repurchases of Common Stock | 1,200 | |||||||||
Treasury Stock Value | 1,053 | 1,053 | ||||||||
Paid-In Capital | $ 147 | $ 147 | ||||||||
Subsequent Event [Member] | Q3 Accelerate Share Repurchase Agreement [Member] | ||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||
Treasury Stock Shares Acquired | 0.7 | 7.4 | 6.7 |
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. 29, 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 |
Derivative agreements - liabilities | 0 | 0 |
Derivative agreements - net fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | 189 | 271 |
Derivative agreements - liabilities | (9) | 0 |
Derivative agreements - net fair value | 180 | 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 |
Derivative agreements - liabilities | 0 | 0 |
Derivative agreements - net fair value | $ 0 | $ 0 |
Fair Value Measurements (Asse23
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | Oct. 29, 2017 | Jan. 29, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of senior notes | $ 24,482 | $ 22,013 |
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 | $ 26,650 | $ 23,620 |
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. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Reconciliation of Basic to Diluted Weighted Average Common Shares: | ||||
Basic Weighted Average Common Shares | 1,168 | 1,224 | 1,184 | 1,236 |
Effect of potentially dilutive securities | 6 | 5 | 6 | 6 |
Diluted Weighted Average Common Shares | 1,174 | 1,229 | 1,190 | 1,242 |
Basic And Diluted Weighted Av25
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 | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of anti-dilutive securities excluded from Diluted Weighted Average Common Shares | 0 | 1 | 1 | 1 |