The Home Depot, Inc. (HD) 10-Q 24 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Aug. 01, 2021	Aug. 17, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Aug. 1, 2021
Document Transition Report	false
Entity File Number	1-8207
Entity Registrant Name	HOME DEPOT, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-3261426
Entity Address, Address Line One	2455 Paces Ferry Road
Entity Address, City or Town	Atlanta,
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	770
Local Phone Number	433-8211
Title of 12(b) Security	Common Stock, $0.05 Par Value Per Share
Trading Symbol	HD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,055,358,696
Entity Central Index Key	0000354950
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Aug. 01, 2021	Jan. 31, 2021
Current assets:
Cash and cash equivalents	$ 4,566	$ 7,895
Receivables, net	3,322	2,992
Merchandise inventories	18,909	16,627
Other current assets	1,465	963
Total current assets	28,262	28,477
Net property and equipment	24,750	24,705
Operating lease right-of-use assets	5,960	5,962
Goodwill	7,454	7,126
Other assets	4,343	4,311
Total assets	70,769	70,581
Current liabilities:
Accounts payable	12,817	11,606
Accrued salaries and related expenses	2,329	2,463
Sales taxes payable	1,014	774
Deferred revenue	3,498	2,823
Current installments of long-term debt	2,428	1,416
Current operating lease liabilities	814	828
Other accrued expenses	3,766	3,256
Total current liabilities	26,666	23,166
Long-term debt, excluding current installments	33,746	35,822
Long-term operating lease liabilities	5,360	5,356
Other long-term liabilities	2,928	2,938
Total liabilities	68,700	67,282
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,791 shares at August 1, 2021 and 1,789 shares at January 31, 2021; outstanding: 1,056 shares at August 1, 2021 and 1,077 shares at January 31, 2021	90	89
Paid-in capital	11,797	11,540
Retained earnings	63,560	58,134
Accumulated other comprehensive loss	(585)	(671)
Treasury stock, at cost, 735 shares at August 1, 2021 and 712 shares at January 31, 2021	(72,793)	(65,793)
Total stockholders’ equity	2,069	3,299
Total liabilities and stockholders’ equity	$ 70,769	$ 70,581

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Aug. 01, 2021	Jan. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.05	$ 0.05
Common stock, shares authorized (in shares)	10,000	10,000
Common stock, shares, issued (in shares)	1,791	1,789
Common stock, shares outstanding (in shares)	1,056	1,077
Treasury stock, shares (in shares)	735	712

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020	Aug. 01, 2021	Aug. 02, 2020
Income Statement [Abstract]
Net sales	$ 41,118	$ 38,053	$ 78,618	$ 66,313
Cost of sales	27,453	25,112	52,211	43,747
Gross profit	13,665	12,941	26,407	22,566
Operating expenses:
Selling, general and administrative	6,433	6,355	12,807	12,184
Depreciation and amortization	593	519	1,180	1,039
Total operating expenses	7,026	6,874	13,987	13,223
Operating income	6,639	6,067	12,420	9,343
Interest and other (income) expense:
Interest and investment income	(5)	(9)	(11)	(26)
Interest expense	326	346	665	670
Interest and other, net	321	337	654	644
Earnings before provision for income taxes	6,318	5,730	11,766	8,699
Provision for income taxes	1,511	1,398	2,814	2,122
Net earnings	$ 4,807	$ 4,332	$ 8,952	$ 6,577
Basic weighted average common shares (in shares)	1,058	1,073	1,064	1,073
Basic earnings per share (in dollars per share)	$ 4.54	$ 4.04	$ 8.41	$ 6.13
Diluted weighted average common shares (in shares)	1,062	1,077	1,068	1,077
Diluted earnings per share (in dollars per share)	$ 4.53	$ 4.02	$ 8.38	$ 6.11

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020	Aug. 01, 2021	Aug. 02, 2020
Statement of Comprehensive Income [Abstract]
Net earnings	$ 4,807	$ 4,332	$ 8,952	$ 6,577
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	21	141	55	(278)
Cash flow hedges	2	5	4	5
Other	0	(10)	27	0
Total other comprehensive income (loss)	23	136	86	(273)
Comprehensive income	$ 4,830	$ 4,468	$ 9,038	$ 6,304

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at beginning of period at Feb. 02, 2020		$ 89	$ 11,001	$ 51,729	$ (739)	$ (65,196)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans			73
Stock-based compensation expense			154
Net earnings	$ 6,577			6,577
Cash dividends				(3,223)
Other				(9)
Foreign currency translation adjustments, net of tax					(278)
Cash flow hedges, net of tax	5				5
Other, net of tax	0
Repurchases of common stock	(597)					(597)
Balance at end of period at Aug. 02, 2020	(414)	89	11,228	55,074	(1,012)	(65,793)
Balance at beginning of period at May. 03, 2020		89	11,008	52,354	(1,148)	(65,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans			144
Stock-based compensation expense			76
Net earnings	4,332			4,332
Cash dividends				(1,612)
Foreign currency translation adjustments, net of tax					141
Cash flow hedges, net of tax	5				5
Other, net of tax	(10)				(10)
Repurchases of common stock	0
Balance at end of period at Aug. 02, 2020	(414)	89	11,228	55,074	(1,012)	(65,793)
Balance at beginning of period at Jan. 31, 2021	3,299	89	11,540	58,134	(671)	(65,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans		1	32
Stock-based compensation expense			225
Net earnings	8,952			8,952
Cash dividends				(3,526)
Foreign currency translation adjustments, net of tax					55
Cash flow hedges, net of tax	4				4
Other, net of tax	27				27
Repurchases of common stock	(7,000)					(7,000)
Balance at end of period at Aug. 01, 2021	2,069	90	11,797	63,560	(585)	(72,793)
Balance at beginning of period at May. 02, 2021		90	11,555	60,504	(608)	(69,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans			149
Stock-based compensation expense			93
Net earnings	4,807			4,807
Cash dividends				(1,751)
Foreign currency translation adjustments, net of tax					21
Cash flow hedges, net of tax	2				2
Other, net of tax	0
Repurchases of common stock	(3,000)					(3,000)
Balance at end of period at Aug. 01, 2021	$ 2,069	$ 90	$ 11,797	$ 63,560	$ (585)	$ (72,793)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020
Cash Flows from Operating Activities:
Net earnings	$ 8,952	$ 6,577
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization	1,414	1,222
Stock-based compensation expense	226	155
Changes in receivables, net	(321)	(477)
Changes in merchandise inventories	(2,191)	920
Changes in other current assets	(574)	(126)
Changes in accounts payable and accrued expenses	1,658	5,673
Changes in deferred revenue	671	397
Changes in income taxes payable	154	447
Changes in deferred income taxes	(116)	13
Other operating activities	74	28
Net cash provided by operating activities	9,947	14,829
Cash Flows from Investing Activities:
Capital expenditures	(1,042)	(1,032)
Payments for businesses acquired, net	(416)	0
Other investing activities	0	12
Net cash used in investing activities	(1,458)	(1,020)
Cash Flows from Financing Activities:
Repayments of short-term debt, net	0	(974)
Proceeds from long-term debt, net of discounts and premiums	0	4,960
Repayments of long-term debt	(1,434)	(1,806)
Repurchases of common stock	(6,905)	(791)
Proceeds from sales of common stock	167	164
Cash dividends	(3,526)	(3,223)
Other financing activities	(136)	(127)
Net cash used in financing activities	(11,834)	(1,797)
Change in cash and cash equivalents	(3,345)	12,012
Effect of exchange rate changes on cash and cash equivalents	16	(6)
Cash and cash equivalents at beginning of period	7,895	2,133
Cash and cash equivalents at end of period	4,566	14,139
Supplemental Disclosures:
Cash paid for interest, net of interest capitalized	626	587
Cash paid for income taxes	$ 2,913	$ 1,611

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Aug. 01, 2021
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 its subsidiaries (the "Company," "Home Depot," "we," "our" or "us") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by 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 consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2020 Form 10-K. Recently Adopted Accounting Pronouncements ASU No. 2019-12. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include removal of certain exceptions to the general principles of Topic 740, “Income Taxes,” and simplification in several other areas. On February 1, 2021, we adopted ASU No. 2019-12 with no material impact to our consolidated financial condition, results of operations or cash flows. Recently Issued Accounting Pronouncements Recent accounting pronouncements pending adoption not discussed above or in the 2020 Form 10-K are either not applicable or will not have or are not expected to have a material impact on our consolidated financial condition, results of operations or cash flows.

Net Sales

Net Sales	6 Months Ended
	Aug. 01, 2021
Revenue from Contract with Customer [Abstract]
Net Sales	NET SALES Net Sales No sales to an individual customer accounted for more than 10% of our net sales during the three and six months ended August 1, 2021 or August 2, 2020. The following table presents net sales, classified by geography: Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Net sales – in the U.S. $ 37,642 $ 35,205 $ 72,359 $ 61,623 Net sales – outside the U.S. 3,476 2,848 6,259 4,690 Net sales $ 41,118 $ 38,053 $ 78,618 $ 66,313 The following table presents net sales by products and services: Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Net sales – products $ 39,717 $ 36,990 $ 75,988 $ 64,295 Net sales – services 1,401 1,063 2,630 2,018 Net sales $ 41,118 $ 38,053 $ 78,618 $ 66,313 The following table presents major product lines and the related merchandising departments (and related services): Major Product Line Merchandising Departments Building Materials Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing Décor Appliances, Décor/Storage, Flooring, Kitchen and Bath, and Paint Hardlines Hardware, Indoor Garden, Outdoor Garden, and Tools The following table presents net sales by major product lines (and related services): Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Building Materials $ 14,411 $ 12,556 $ 28,071 $ 22,372 Décor 13,395 11,790 25,277 21,096 Hardlines 13,312 13,707 25,270 22,845 Net sales $ 41,118 $ 38,053 $ 78,618 $ 66,313 Deferred Revenue For products and services sold in stores or online, payment is typically due at the point of sale. When we receive payment from customers before the customer has taken possession of the merchandise or the service has been performed, the amount received is recorded as deferred revenue until the sale or service is complete. Such performance obligations are part of contracts with expected original durations of three months or less. As of August 1, 2021 and January 31, 2021, deferred revenue for products and services was $2.6 billion and $1.9 billion, respectively. We further record deferred revenue for the sale of gift cards and recognize the associated revenue upon the redemption of those gift cards in net sales, which generally occurs within six months of gift card issuance. As of August 1, 2021 and January 31, 2021, our performance obligations for unredeemed gift cards were $801 million and $839 million, respectively. Gift card breakage income, which is our estimate of the portion of our gift card balance not expected to be redeemed, was immaterial during the three and six months ended August 1, 2021 and August 2, 2020.

Property and Leases

Property and Leases	6 Months Ended
	Aug. 01, 2021
Leases [Abstract]
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment includes accumulated depreciation and amortization of $25.3 billion as of August 1, 2021 and $24.1 billion as of January 31, 2021. Leases The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases: in millions Consolidated Balance Sheet Caption August 1, January 31, Assets: Operating lease assets Operating lease right-of-use assets $ 5,960 $ 5,962 Finance lease assets (1) Net property and equipment 2,790 2,493 Total lease assets $ 8,750 $ 8,455 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 814 $ 828 Finance lease liabilities Current installments of long-term debt 180 66 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,360 5,356 Finance lease liabilities Long-term debt, excluding current installments 2,905 2,700 Total lease liabilities $ 9,259 $ 8,950 ————— (1) Finance lease assets are recorded net of accumulated amortization of $930 million as of August 1, 2021 and $815 million as of January 31, 2021. The following table presents supplemental non-cash information related to leases: Six Months Ended in millions August 1, August 2, Lease assets obtained in exchange for new operating lease liabilities $ 429 $ 296 Lease assets obtained in exchange for new finance lease liabilities 417 1,085
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment includes accumulated depreciation and amortization of $25.3 billion as of August 1, 2021 and $24.1 billion as of January 31, 2021. Leases The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases: in millions Consolidated Balance Sheet Caption August 1, January 31, Assets: Operating lease assets Operating lease right-of-use assets $ 5,960 $ 5,962 Finance lease assets (1) Net property and equipment 2,790 2,493 Total lease assets $ 8,750 $ 8,455 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 814 $ 828 Finance lease liabilities Current installments of long-term debt 180 66 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,360 5,356 Finance lease liabilities Long-term debt, excluding current installments 2,905 2,700 Total lease liabilities $ 9,259 $ 8,950 ————— (1) Finance lease assets are recorded net of accumulated amortization of $930 million as of August 1, 2021 and $815 million as of January 31, 2021. The following table presents supplemental non-cash information related to leases: Six Months Ended in millions August 1, August 2, Lease assets obtained in exchange for new operating lease liabilities $ 429 $ 296 Lease assets obtained in exchange for new finance lease liabilities 417 1,085

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Aug. 01, 2021
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS' EQUITY Stock Rollforward The following table presents a reconciliation of the number of shares of our common stock and cash dividends per share: shares in millions Three Months Ended Six Months Ended August 1, August 2, August 1, August 2, Common stock: Balance at beginning of period 1,790 1,788 1,789 1,786 Shares issued under employee stock plans 1 — 2 2 Balance at end of period 1,791 1,788 1,791 1,788 Treasury stock: Balance at beginning of period (725) (712) (712) (709) Repurchases of common stock (10) — (23) (3) Balance at end of period (735) (712) (735) (712) Shares outstanding at end of period 1,056 1,076 1,056 1,076 Cash dividends per share $ 1.65 $ 1.50 $ 3.30 $ 3.00 Share Repurchases In May 2021, our Board of Directors approved a $20.0 billion share repurchase authorization that replaced the previous authorization. This new authorization does not have a prescribed expiration date. As of August 1, 2021, approximately $17.6 billion of the $20.0 billion share repurchase authorization remained available. In March 2020, we suspended our share repurchases to enhance our liquidity position during the COVID-19 pandemic. We resumed share repurchases in the first quarter of fiscal 2021. The following table presents information about our repurchases of common stock, all of which were completed through open market purchases: in millions Three Months Ended Six Months Ended August 1, August 2, August 1, August 2, Total number of shares repurchased 10 — 23 3 Total amount paid for shares repurchased $ 3,000 $ — $ 7,000 $ 597

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Aug. 01, 2021
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. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the assets and liabilities that are measured at fair value on a recurring basis: Fair Value at August 1, 2021 Using Fair Value at January 31, 2021 Using in millions Quoted Prices in Active Markets for Identical Assets Significant Significant Quoted Prices in Active Markets for Identical Assets Significant Significant Derivative agreements – assets $ — $ 144 $ — $ — $ 172 $ — Derivative agreements – liabilities — (87) — — (71) — Total $ — $ 57 $ — $ — $ 101 $ — The fair values of our derivative instruments are determined using an income approach and Level 2 inputs, which include the respective interest rate and foreign currency forward curves and discount rates. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Long-lived assets, goodwill, and other intangible assets are subject to nonrecurring fair value measurement for the assessment of impairment. We did not have any material assets or liabilities that were measured at fair value on a nonrecurring basis during the three and six months ended August 1, 2021 or August 2, 2020. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value due to their short-term nature. The following table presents the aggregate fair values and carrying values of our senior notes: August 1, January 31, in millions Fair Value Carrying Fair Value Carrying Senior notes $ 39,472 $ 33,089 $ 41,289 $ 34,472

Weighted Average Common Shares

Weighted Average Common Shares	6 Months Ended
	Aug. 01, 2021
Earnings Per Share [Abstract]
Weighted Average Common Shares	WEIGHTED AVERAGE COMMON SHARES The following table presents the reconciliation of our basic to diluted weighted average common shares: Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Basic weighted average common shares 1,058 1,073 1,064 1,073 Effect of potentially dilutive securities 4 4 4 4 Diluted weighted average common shares 1,062 1,077 1,068 1,077 Anti-dilutive securities excluded from diluted weighted average common shares — — — —

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Aug. 01, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIESWe are involved in litigation arising in the normal course of business. In management’s opinion, any such litigation is not expected to have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

HD Supply Acquisition

HD Supply Acquisition	6 Months Ended
	Aug. 01, 2021
Business Combinations [Abstract]
HD Supply Acquisition	HD SUPPLY ACQUISITION On December 24, 2020, we completed the acquisition of HD Supply for total purchase consideration of $8.7 billion. HD Supply is a leading national distributor of MRO products in the multifamily and hospitality end markets. The acquisition was funded through cash on hand, a portion of which was replaced with the proceeds from our issuance of $3.0 billion of senior notes in January 2021. The acquisition was accounted for in accordance with Topic 805 "Business Combinations" and, accordingly, HD Supply’s results of operations have been consolidated in the Company’s financial statements since December 24, 2020, the date of acquisition. We recorded a preliminary allocation of the purchase price to assets acquired and liabilities assumed based on their estimated fair values as of December 24, 2020. There were no material adjustments to our preliminary purchase price allocation recognized during the first six months of fiscal 2021. The final determination of the fair values and related income tax impacts will be completed as soon as practicable, and within the measurement period of up to one year from the acquisition date as permitted under GAAP.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Aug. 01, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of The Home Depot, Inc. and its subsidiaries (the "Company," "Home Depot," "we," "our" or "us") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by 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 consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Form 10-K.
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements ASU No. 2019-12. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include removal of certain exceptions to the general principles of Topic 740, “Income Taxes,” and simplification in several other areas. On February 1, 2021, we adopted ASU No. 2019-12 with no material impact to our consolidated financial condition, results of operations or cash flows. Recently Issued Accounting Pronouncements Recent accounting pronouncements pending adoption not discussed above or in the 2020 Form 10-K are either not applicable or will not have or are not expected to have a material impact on our consolidated financial condition, results of operations or cash flows.

Net Sales (Tables)

Net Sales (Tables)	6 Months Ended
	Aug. 01, 2021
Revenue from Contract with Customer [Abstract]
Summary of net sales, classified by geography	The following table presents net sales, classified by geography: Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Net sales – in the U.S. $ 37,642 $ 35,205 $ 72,359 $ 61,623 Net sales – outside the U.S. 3,476 2,848 6,259 4,690 Net sales $ 41,118 $ 38,053 $ 78,618 $ 66,313
Summary of net sales by products and services	The following table presents net sales by products and services: Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Net sales – products $ 39,717 $ 36,990 $ 75,988 $ 64,295 Net sales – services 1,401 1,063 2,630 2,018 Net sales $ 41,118 $ 38,053 $ 78,618 $ 66,313
Summary of net sales by major product line	The following table presents major product lines and the related merchandising departments (and related services): Major Product Line Merchandising Departments Building Materials Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing Décor Appliances, Décor/Storage, Flooring, Kitchen and Bath, and Paint Hardlines Hardware, Indoor Garden, Outdoor Garden, and Tools The following table presents net sales by major product lines (and related services): Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Building Materials $ 14,411 $ 12,556 $ 28,071 $ 22,372 Décor 13,395 11,790 25,277 21,096 Hardlines 13,312 13,707 25,270 22,845 Net sales $ 41,118 $ 38,053 $ 78,618 $ 66,313

Property and Leases (Tables)

Property and Leases (Tables)	6 Months Ended
	Aug. 01, 2021
Leases [Abstract]
Schedule of assets and liabilities related to operating and finance leases	The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases: in millions Consolidated Balance Sheet Caption August 1, January 31, Assets: Operating lease assets Operating lease right-of-use assets $ 5,960 $ 5,962 Finance lease assets (1) Net property and equipment 2,790 2,493 Total lease assets $ 8,750 $ 8,455 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 814 $ 828 Finance lease liabilities Current installments of long-term debt 180 66 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,360 5,356 Finance lease liabilities Long-term debt, excluding current installments 2,905 2,700 Total lease liabilities $ 9,259 $ 8,950 —————
Schedule of Cash Flow, Supplemental Disclosures	The following table presents supplemental non-cash information related to leases: Six Months Ended in millions August 1, August 2, Lease assets obtained in exchange for new operating lease liabilities $ 429 $ 296 Lease assets obtained in exchange for new finance lease liabilities 417 1,085

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Aug. 01, 2021
Equity [Abstract]
Reconciliation of the number of shares of common stock and dividends per share	The following table presents a reconciliation of the number of shares of our common stock and cash dividends per share: shares in millions Three Months Ended Six Months Ended August 1, August 2, August 1, August 2, Common stock: Balance at beginning of period 1,790 1,788 1,789 1,786 Shares issued under employee stock plans 1 — 2 2 Balance at end of period 1,791 1,788 1,791 1,788 Treasury stock: Balance at beginning of period (725) (712) (712) (709) Repurchases of common stock (10) — (23) (3) Balance at end of period (735) (712) (735) (712) Shares outstanding at end of period 1,056 1,076 1,056 1,076 Cash dividends per share $ 1.65 $ 1.50 $ 3.30 $ 3.00
Repurchases of common stock	The following table presents information about our repurchases of common stock, all of which were completed through open market purchases: in millions Three Months Ended Six Months Ended August 1, August 2, August 1, August 2, Total number of shares repurchased 10 — 23 3 Total amount paid for shares repurchased $ 3,000 $ — $ 7,000 $ 597

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Aug. 01, 2021
Fair Value Disclosures [Abstract]
Assets and liabilities measured at fair value on a recurring basis	The following table presents the assets and liabilities that are measured at fair value on a recurring basis: Fair Value at August 1, 2021 Using Fair Value at January 31, 2021 Using in millions Quoted Prices in Active Markets for Identical Assets Significant Significant Quoted Prices in Active Markets for Identical Assets Significant Significant Derivative agreements – assets $ — $ 144 $ — $ — $ 172 $ — Derivative agreements – liabilities — (87) — — (71) — Total $ — $ 57 $ — $ — $ 101 $ —
Assets and liabilities measured at fair value on a nonrecurring basis	The following table presents the aggregate fair values and carrying values of our senior notes: August 1, January 31, in millions Fair Value Carrying Fair Value Carrying Senior notes $ 39,472 $ 33,089 $ 41,289 $ 34,472

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	6 Months Ended
	Aug. 01, 2021
Earnings Per Share [Abstract]
Schedule of weighted average number of shares	The following table presents the reconciliation of our basic to diluted weighted average common shares: Three Months Ended Six Months Ended in millions August 1, August 2, August 1, August 2, Basic weighted average common shares 1,058 1,073 1,064 1,073 Effect of potentially dilutive securities 4 4 4 4 Diluted weighted average common shares 1,062 1,077 1,068 1,077 Anti-dilutive securities excluded from diluted weighted average common shares — — — —

Net Sales (Details)

Net Sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020	Aug. 01, 2021	Aug. 02, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 41,118	$ 38,053	$ 78,618	$ 66,313
Products
Disaggregation of Revenue [Line Items]
Net sales	39,717	36,990	75,988	64,295
Services
Disaggregation of Revenue [Line Items]
Net sales	1,401	1,063	2,630	2,018
Building Materials
Disaggregation of Revenue [Line Items]
Net sales	14,411	12,556	28,071	22,372
Décor
Disaggregation of Revenue [Line Items]
Net sales	13,395	11,790	25,277	21,096
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	13,312	13,707	25,270	22,845
In the U.S.
Disaggregation of Revenue [Line Items]
Net sales	37,642	35,205	72,359	61,623
Outside the U.S.
Disaggregation of Revenue [Line Items]
Net sales	$ 3,476	$ 2,848	$ 6,259	$ 4,690

Net Sales - Narrative (Details)

Net Sales - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Aug. 01, 2021	Jan. 31, 2021
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 2,600	$ 1,900
General redemption period	6 months
Gift card performance obligations	$ 801	$ 839

Property and Leases - Narrative

Property and Leases - Narrative (Details) - USD ($) $ in Billions	Aug. 01, 2021	Jan. 31, 2021
Leases [Abstract]
Accumulated depreciation and amortization	$ 25.3	$ 24.1

Property and Leases - Schedule

Property and Leases - Schedule of assets and liabilities related to operating and finance leases (Details) - USD ($) $ in Millions	Aug. 01, 2021	Jan. 31, 2021
Assets
Operating lease assets	$ 5,960	$ 5,962
Finance lease assets	2,790	2,493
Total lease assets	8,750	8,455
Current:
Operating lease liabilities	814	828
Finance lease liabilities	180	66
Long-term:
Operating lease liabilities	5,360	5,356
Finance lease liabilities	2,905	2,700
Total lease liabilities	9,259	8,950
Finance lease asset accumulated amortization	$ 930	$ 815

Property and Leases - Other Lea

Property and Leases - Other Lease Information (Details) - USD ($) $ in Millions	6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020
Leases [Abstract]
Lease assets obtained in exchange for new operating lease liabilities	$ 429	$ 296
Lease assets obtained in exchange for new finance lease liabilities	$ 417	$ 1,085

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Reconciliation of the Number of Shares of Common Stock and Dividends Per Share (Details) - $ / shares shares in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020	Aug. 01, 2021	Aug. 02, 2020	Jan. 31, 2021
Common stock:
Balance at beginning of period (in shares)	1,790	1,788	1,789	1,786
Shares issued under employee stock plans (in shares)	1	0	2	2
Balance at end of period (in shares)	1,791	1,788	1,791	1,788
Treasury stock:
Balance at beginning of period (in shares)	(725)	(712)	(712)	(709)
Repurchases of common stock (in shares)	(10)	0	(23)	(3)
Balance at end of period (in shares)	(735)	(712)	(735)	(712)
Shares outstanding at end of period (in shares)	1,056	1,076	1,056	1,076	1,077
Cash dividends per share (in usd per share)	$ 1.65	$ 1.50	$ 3.30	$ 3

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - 2021 Share Repurchase Program - USD ($) $ in Billions	Aug. 01, 2021	May 31, 2021
Equity, Class of Treasury Stock [Line Items]
Share repurchase amount		$ 20
Remaining authorized repurchase amount	$ 17.6

Stockholders' Equity - Repurcha

Stockholders' Equity - Repurchases of Common Stock (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020	Aug. 01, 2021	Aug. 02, 2020
Equity [Abstract]
Total number of shares repurchased	10	0	23	3
Total amount paid for shares repurchased	$ 3,000	$ 0	$ 7,000	$ 597

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair value measurements recurring - USD ($) $ in Millions	Aug. 01, 2021	Jan. 31, 2021
Fair value inputs level 1
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items]
Derivative agreements – assets	$ 0	$ 0
Derivative agreements – liabilities	0	0
Total	0	0
Fair value inputs level 2
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items]
Derivative agreements – assets	144	172
Derivative agreements – liabilities	(87)	(71)
Total	57	101
Fair value inputs level 3
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items]
Derivative agreements – assets	0	0
Derivative agreements – liabilities	0	0
Total	$ 0	$ 0

Fair Value Measurements - Ass_2

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Millions	Aug. 01, 2021	Jan. 31, 2021
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 33,089	$ 34,472
Senior notes | Fair Value measurements nonrecurring | Fair value inputs level 1
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Fair value of senior notes	$ 39,472	$ 41,289

Weighted Average Common Share_2

Weighted Average Common Shares - Reconciliation of Basic to Diluted Weighted Average Common Shares (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2021	Aug. 02, 2020	Aug. 01, 2021	Aug. 02, 2020
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Basic weighted average common shares (in shares)	1,058	1,073	1,064	1,073
Effect of potentially dilutive securities (in shares)	4	4	4	4
Diluted weighted average common shares (in shares)	1,062	1,077	1,068	1,077
Anti-dilutive securities excluded from diluted weighted average common shares (in shares)	0	0	0	0

HD Supply Acquisition (Details)

HD Supply Acquisition (Details) - USD ($) $ in Billions	Dec. 24, 2020	Jan. 31, 2021
Senior notes
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt		$ 3
HD Holdings Inc
Business Acquisition [Line Items]
Consideration transferred	$ 8.7