The Home Depot, Inc. (HD) 10-Q 23 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Oct. 31, 2021	Nov. 16, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 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		1,044,239,177
Entity Central Index Key	0000354950
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Oct. 31, 2021	Jan. 31, 2021
Current assets:
Cash and cash equivalents	$ 5,067	$ 7,895
Receivables, net	3,533	2,992
Merchandise inventories	20,582	16,627
Other current assets	1,284	963
Total current assets	30,466	28,477
Net property and equipment	24,935	24,705
Operating lease right-of-use assets	5,903	5,962
Goodwill	7,445	7,126
Other assets	4,282	4,311
Total assets	73,031	70,581
Current liabilities:
Accounts payable	13,375	11,606
Accrued salaries and related expenses	2,028	2,463
Sales taxes payable	968	774
Deferred revenue	3,499	2,823
Current installments of long-term debt	2,436	1,416
Current operating lease liabilities	827	828
Other accrued expenses	3,770	3,256
Total current liabilities	26,903	23,166
Long-term debt, excluding current installments	36,712	35,822
Long-term operating lease liabilities	5,290	5,356
Other long-term liabilities	3,091	2,938
Total liabilities	71,996	67,282
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,791 shares at October 31, 2021 and 1,789 shares at January 31, 2021; outstanding: 1,046 shares at October 31, 2021 and 1,077 shares at January 31, 2021	90	89
Paid-in capital	11,889	11,540
Retained earnings	65,951	58,134
Accumulated other comprehensive loss	(602)	(671)
Treasury stock, at cost, 745 shares at October 31, 2021 and 712 shares at January 31, 2021	(76,293)	(65,793)
Total stockholders’ equity	1,035	3,299
Total liabilities and stockholders’ equity	$ 73,031	$ 70,581

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Oct. 31, 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)	1,046	1,077
Treasury stock, shares (in shares)	745	712

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020	Oct. 31, 2021	Nov. 01, 2020
Income Statement [Abstract]
Net sales	$ 36,820	$ 33,536	$ 115,438	$ 99,849
Cost of sales	24,257	22,080	76,468	65,827
Gross profit	12,563	11,456	38,970	34,022
Operating expenses:
Selling, general and administrative	6,168	6,076	18,975	18,260
Depreciation and amortization	600	528	1,780	1,567
Total operating expenses	6,768	6,604	20,755	19,827
Operating income	5,795	4,852	18,215	14,195
Interest and other (income) expense:
Interest and investment income	(15)	(11)	(26)	(37)
Interest expense	341	340	1,006	1,010
Interest and other, net	326	329	980	973
Earnings before provision for income taxes	5,469	4,523	17,235	13,222
Provision for income taxes	1,340	1,091	4,154	3,213
Net earnings	$ 4,129	$ 3,432	$ 13,081	$ 10,009
Basic weighted average common shares (in shares)	1,049	1,073	1,059	1,074
Basic earnings per share (in dollars per share)	$ 3.94	$ 3.20	$ 12.35	$ 9.32
Diluted weighted average common shares (in shares)	1,053	1,078	1,063	1,078
Diluted earnings per share (in dollars per share)	$ 3.92	$ 3.18	$ 12.31	$ 9.28

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020	Oct. 31, 2021	Nov. 01, 2020
Statement of Comprehensive Income [Abstract]
Net earnings	$ 4,129	$ 3,432	$ 13,081	$ 10,009
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(20)	46	35	(232)
Cash flow hedges	3	1	7	6
Other	0	0	27	0
Total other comprehensive income (loss), net of tax	(17)	47	69	(226)
Comprehensive income	$ 4,112	$ 3,479	$ 13,150	$ 9,783

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			89
Stock-based compensation expense			222
Net earnings	$ 10,009			10,009
Cash dividends				(4,837)
Other				(9)
Foreign currency translation adjustments	(232)				(232)
Cash flow hedges, net of tax	6				6
Other, net of tax	0
Repurchases of common stock	(597)					(597)
Balance at end of period at Nov. 01, 2020	1,535	89	11,312	56,892	(965)	(65,793)
Balance at beginning of period at Aug. 02, 2020		89	11,228	55,074	(1,012)	(65,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans			16
Stock-based compensation expense			68
Net earnings	3,432			3,432
Cash dividends				(1,614)
Foreign currency translation adjustments	46				46
Cash flow hedges, net of tax	1				1
Other, net of tax	0
Repurchases of common stock	0
Balance at end of period at Nov. 01, 2020	1,535	89	11,312	56,892	(965)	(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	50
Stock-based compensation expense			299
Net earnings	13,081			13,081
Cash dividends				(5,264)
Foreign currency translation adjustments	35				35
Cash flow hedges, net of tax	7				7
Other, net of tax	27				27
Repurchases of common stock	(10,500)					(10,500)
Balance at end of period at Oct. 31, 2021	1,035	90	11,889	65,951	(602)	(76,293)
Balance at beginning of period at Aug. 01, 2021		90	11,797	63,560	(585)	(72,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans			18
Stock-based compensation expense			74
Net earnings	4,129			4,129
Cash dividends				(1,738)
Foreign currency translation adjustments	(20)				(20)
Cash flow hedges, net of tax	3				3
Other, net of tax	0
Repurchases of common stock	(3,500)					(3,500)
Balance at end of period at Oct. 31, 2021	$ 1,035	$ 90	$ 11,889	$ 65,951	$ (602)	$ (76,293)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020
Cash Flows from Operating Activities:
Net earnings	$ 13,081	$ 10,009
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization	2,128	1,853
Stock-based compensation expense	312	234
Changes in receivables, net	(533)	(580)
Changes in merchandise inventories	(3,871)	(1,718)
Changes in other current assets	(375)	12
Changes in accounts payable and accrued expenses	1,918	6,555
Changes in deferred revenue	672	549
Changes in income taxes payable	(10)	530
Changes in deferred income taxes	(73)	(86)
Other operating activities	137	57
Net cash provided by operating activities	13,386	17,415
Cash Flows from Investing Activities:
Capital expenditures	(1,737)	(1,503)
Payments for businesses acquired, net	(416)	0
Other investing activities	21	52
Net cash used in investing activities	(2,132)	(1,451)
Cash Flows from Financing Activities:
Repayments of short-term debt, net	0	(974)
Proceeds from long-term debt, net of discounts and premiums	2,979	4,960
Repayments of long-term debt	(1,480)	(1,836)
Repurchases of common stock	(10,374)	(791)
Proceeds from sales of common stock	190	185
Cash dividends	(5,264)	(4,837)
Other financing activities	(160)	(132)
Net cash used in financing activities	(14,109)	(3,425)
Change in cash and cash equivalents	(2,855)	12,539
Effect of exchange rate changes on cash and cash equivalents	27	(20)
Cash and cash equivalents at beginning of period	7,895	2,133
Cash and cash equivalents at end of period	5,067	14,652
Supplemental Disclosures:
Cash paid for interest, net of interest capitalized	1,021	986
Cash paid for income taxes	$ 4,170	$ 2,681

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 31, 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	9 Months Ended
	Oct. 31, 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 nine months ended October 31, 2021 or November 1, 2020. The following table presents net sales, classified by geography: Three Months Ended Nine Months Ended in millions October 31, November 1, October 31, November 1, Net sales – in the U.S. $ 33,736 $ 30,845 $ 106,095 $ 92,468 Net sales – outside the U.S. 3,084 2,691 9,343 7,381 Net sales $ 36,820 $ 33,536 $ 115,438 $ 99,849 The following table presents net sales by products and services: Three Months Ended Nine Months Ended in millions October 31, November 1, October 31, November 1, Net sales – products $ 35,383 $ 32,312 $ 111,371 $ 96,607 Net sales – services 1,437 1,224 4,067 3,242 Net sales $ 36,820 $ 33,536 $ 115,438 $ 99,849 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 Nine Months Ended in millions October 31, November 1, October 31, November 1, Building Materials $ 13,809 $ 12,594 $ 41,880 $ 34,966 Décor 12,783 11,213 38,060 32,309 Hardlines 10,228 9,729 35,498 32,574 Net sales $ 36,820 $ 33,536 $ 115,438 $ 99,849 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 typically three months or less. As of October 31, 2021 and January 31, 2021, deferred revenue for products and services was $2.5 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, which generally occurs within six months of gift card issuance. As of October 31, 2021 and January 31, 2021, our performance obligations for unredeemed gift cards were $827 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 nine months ended October 31, 2021 and November 1, 2020.

Property and Leases

Property and Leases	9 Months Ended
	Oct. 31, 2021
Leases [Abstract]
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment includes accumulated depreciation and amortization of $25.8 billion as of October 31, 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 October 31, January 31, Assets: Operating lease assets Operating lease right-of-use assets $ 5,903 $ 5,962 Finance lease assets (1) Net property and equipment 2,894 2,493 Total lease assets $ 8,797 $ 8,455 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 827 $ 828 Finance lease liabilities Current installments of long-term debt 188 66 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,290 5,356 Finance lease liabilities Long-term debt, excluding current installments 3,033 2,700 Total lease liabilities $ 9,338 $ 8,950 ————— (1) Finance lease assets are recorded net of accumulated amortization of $987 million as of October 31, 2021 and $815 million as of January 31, 2021. The following table presents supplemental non-cash information related to leases: Nine Months Ended in millions October 31, November 1, Lease assets obtained in exchange for new operating lease liabilities $ 637 $ 500 Lease assets obtained in exchange for new finance lease liabilities 581 1,662
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment includes accumulated depreciation and amortization of $25.8 billion as of October 31, 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 October 31, January 31, Assets: Operating lease assets Operating lease right-of-use assets $ 5,903 $ 5,962 Finance lease assets (1) Net property and equipment 2,894 2,493 Total lease assets $ 8,797 $ 8,455 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 827 $ 828 Finance lease liabilities Current installments of long-term debt 188 66 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,290 5,356 Finance lease liabilities Long-term debt, excluding current installments 3,033 2,700 Total lease liabilities $ 9,338 $ 8,950 ————— (1) Finance lease assets are recorded net of accumulated amortization of $987 million as of October 31, 2021 and $815 million as of January 31, 2021. The following table presents supplemental non-cash information related to leases: Nine Months Ended in millions October 31, November 1, Lease assets obtained in exchange for new operating lease liabilities $ 637 $ 500 Lease assets obtained in exchange for new finance lease liabilities 581 1,662

Debt

Debt	9 Months Ended
	Oct. 31, 2021
Debt Disclosure [Abstract]
Debt	DEBT Short-Term Debt We have commercial paper programs that allow for borrowings of up to $3.0 billion. All of our short-term borrowings in the first nine months of fiscal 2021 were under these commercial paper programs, and the maximum amount outstanding at any time was $11 million. In connection with these programs, we have back-up credit facilities with a consortium of banks for borrowings of up to $3.0 billion, which consist of a five-year $2.0 billion credit facility scheduled to expire in December 2023, and a 364-day $1.0 billion credit facility scheduled to expire in December 2021. At October 31, 2021 and January 31, 2021, there were no outstanding borrowings under our commercial paper programs. Long-Term Debt September 2021 Issuance. In September 2021, we issued three tranches of senior notes. • The first tranche consisted of $1.0 billion of 1.50% senior notes due September 15, 2028 (the “2028 notes”) at a discount of $4 million. Interest on the 2028 notes is due semi-annually on March 15 and September 15 of each year, beginning March 15, 2022. • The second tranche consisted of $1.0 billion of 1.875% senior notes due September 15, 2031 (the “2031 notes”) at a discount of $6 million. Interest on the 2031 notes is due semi-annually on March 15 and September 15 of each year, beginning March 15, 2022. • The third tranche consisted of $1.0 billion of 2.75% senior notes due September 15, 2051 (the "2051 notes") at a discount of $11 million (together with the 2028 notes and the 2031 notes, the “September 2021 issuance”). Interest on the 2051 notes is due semi-annually on March 15 and September 15 of each year, beginning March 15, 2022. • Issuance costs for the September 2021 issuance totaled $17 million. The net proceeds of the September 2021 issuance are being used for general corporate purposes, including repurchases of shares of our common stock, subject to market conditions and other business considerations. Redemption. The 2028 notes, 2031 notes, and 2051 notes may be redeemed by us 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, as defined in the notes, occurs, holders of all notes have the right to require us to redeem those notes at 101% of the aggregate principal amount of the notes plus accrued interest up to the redemption date. The indentures governing the notes do not generally limit our ability to incur additional indebtedness or require us 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 our liquidity or capital resources.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Oct. 31, 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 Nine Months Ended October 31, November 1, October 31, November 1, Common stock: Balance at beginning of period 1,791 1,788 1,789 1,786 Shares issued under employee stock plans — — 2 2 Balance at end of period 1,791 1,788 1,791 1,788 Treasury stock: Balance at beginning of period (735) (712) (712) (709) Repurchases of common stock (10) — (33) (3) Balance at end of period (745) (712) (745) (712) Shares outstanding at end of period 1,046 1,076 1,046 1,076 Cash dividends per share $ 1.65 $ 1.50 $ 4.95 $ 4.50 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 October 31, 2021, approximately $14.1 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 Nine Months Ended October 31, November 1, October 31, November 1, Total number of shares repurchased 10 — 33 3 Total amount paid for shares repurchased $ 3,500 $ — $ 10,500 $ 597

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 31, 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 October 31, 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 $ — $ 106 $ — $ — $ 172 $ — Derivative agreements – liabilities — (178) — — (71) — Total $ — $ (72) $ — $ — $ 101 $ — The fair values of our derivative instruments are determined using an income approach and Level 2 inputs, which include the respective interest rate or 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. During the third quarter of fiscal 2021, we completed our annual assessment of the recoverability of goodwill for our U.S., Canada and Mexico reporting units based on qualitative factors. We performed a qualitative assessment to determine if there were any indicators of impairment and concluded that while there have been events and circumstances in the macro-environment that have impacted us, we have not experienced any entity-specific indicators that would indicate that it is more likely than not that the fair value of any of our reporting units were less than their carrying amounts. Additionally, during the third quarter of fiscal 2021, we completed our annual assessment of the recoverability of our indefinite-lived intangibles based on quantitative factors and concluded no impairment losses should be recognized. We did not have any material assets or liabilities that were measured at fair value on a nonrecurring basis during the three and nine months ended October 31, 2021 or November 1, 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: October 31, January 31, in millions Fair Value Carrying Fair Value Carrying Senior notes $ 41,411 $ 35,927 $ 41,289 $ 34,472

Weighted Average Common Shares

Weighted Average Common Shares	9 Months Ended
	Oct. 31, 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 Nine Months Ended in millions October 31, November 1, October 31, November 1, Basic weighted average common shares 1,049 1,073 1,059 1,074 Effect of potentially dilutive securities 4 5 4 4 Diluted weighted average common shares 1,053 1,078 1,063 1,078 Anti-dilutive securities excluded from diluted weighted average common shares — — — —

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 31, 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	9 Months Ended
	Oct. 31, 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 nine 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)	9 Months Ended
	Oct. 31, 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)	9 Months Ended
	Oct. 31, 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 Nine Months Ended in millions October 31, November 1, October 31, November 1, Net sales – in the U.S. $ 33,736 $ 30,845 $ 106,095 $ 92,468 Net sales – outside the U.S. 3,084 2,691 9,343 7,381 Net sales $ 36,820 $ 33,536 $ 115,438 $ 99,849
Summary of net sales by products and services	The following table presents net sales by products and services: Three Months Ended Nine Months Ended in millions October 31, November 1, October 31, November 1, Net sales – products $ 35,383 $ 32,312 $ 111,371 $ 96,607 Net sales – services 1,437 1,224 4,067 3,242 Net sales $ 36,820 $ 33,536 $ 115,438 $ 99,849
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 Nine Months Ended in millions October 31, November 1, October 31, November 1, Building Materials $ 13,809 $ 12,594 $ 41,880 $ 34,966 Décor 12,783 11,213 38,060 32,309 Hardlines 10,228 9,729 35,498 32,574 Net sales $ 36,820 $ 33,536 $ 115,438 $ 99,849

Property and Leases (Tables)

Property and Leases (Tables)	9 Months Ended
	Oct. 31, 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 October 31, January 31, Assets: Operating lease assets Operating lease right-of-use assets $ 5,903 $ 5,962 Finance lease assets (1) Net property and equipment 2,894 2,493 Total lease assets $ 8,797 $ 8,455 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 827 $ 828 Finance lease liabilities Current installments of long-term debt 188 66 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,290 5,356 Finance lease liabilities Long-term debt, excluding current installments 3,033 2,700 Total lease liabilities $ 9,338 $ 8,950 —————
Schedule of Cash Flow, Supplemental Disclosures	The following table presents supplemental non-cash information related to leases: Nine Months Ended in millions October 31, November 1, Lease assets obtained in exchange for new operating lease liabilities $ 637 $ 500 Lease assets obtained in exchange for new finance lease liabilities 581 1,662

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Oct. 31, 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 Nine Months Ended October 31, November 1, October 31, November 1, Common stock: Balance at beginning of period 1,791 1,788 1,789 1,786 Shares issued under employee stock plans — — 2 2 Balance at end of period 1,791 1,788 1,791 1,788 Treasury stock: Balance at beginning of period (735) (712) (712) (709) Repurchases of common stock (10) — (33) (3) Balance at end of period (745) (712) (745) (712) Shares outstanding at end of period 1,046 1,076 1,046 1,076 Cash dividends per share $ 1.65 $ 1.50 $ 4.95 $ 4.50
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 Nine Months Ended October 31, November 1, October 31, November 1, Total number of shares repurchased 10 — 33 3 Total amount paid for shares repurchased $ 3,500 $ — $ 10,500 $ 597

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 31, 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 October 31, 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 $ — $ 106 $ — $ — $ 172 $ — Derivative agreements – liabilities — (178) — — (71) — Total $ — $ (72) $ — $ — $ 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: October 31, January 31, in millions Fair Value Carrying Fair Value Carrying Senior notes $ 41,411 $ 35,927 $ 41,289 $ 34,472

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	9 Months Ended
	Oct. 31, 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 Nine Months Ended in millions October 31, November 1, October 31, November 1, Basic weighted average common shares 1,049 1,073 1,059 1,074 Effect of potentially dilutive securities 4 5 4 4 Diluted weighted average common shares 1,053 1,078 1,063 1,078 Anti-dilutive securities excluded from diluted weighted average common shares — — — —

Net Sales (Details)

Net Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020	Oct. 31, 2021	Nov. 01, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 36,820	$ 33,536	$ 115,438	$ 99,849
Products
Disaggregation of Revenue [Line Items]
Net sales	35,383	32,312	111,371	96,607
Services
Disaggregation of Revenue [Line Items]
Net sales	1,437	1,224	4,067	3,242
Building Materials
Disaggregation of Revenue [Line Items]
Net sales	13,809	12,594	41,880	34,966
Décor
Disaggregation of Revenue [Line Items]
Net sales	12,783	11,213	38,060	32,309
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	10,228	9,729	35,498	32,574
In the U.S.
Disaggregation of Revenue [Line Items]
Net sales	33,736	30,845	106,095	92,468
Outside the U.S.
Disaggregation of Revenue [Line Items]
Net sales	$ 3,084	$ 2,691	$ 9,343	$ 7,381

Net Sales - Narrative (Details)

Net Sales - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2021	Jan. 31, 2021
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 2,500	$ 1,900
General redemption period	6 months
Gift card performance obligations	$ 827	$ 839

Property and Leases - Narrative

Property and Leases - Narrative (Details) - USD ($) $ in Billions	Oct. 31, 2021	Jan. 31, 2021
Leases [Abstract]
Accumulated depreciation and amortization	$ 25.8	$ 24.1

Property and Leases - Schedule

Property and Leases - Schedule of assets and liabilities related to operating and finance leases (Details) - USD ($) $ in Millions	Oct. 31, 2021	Jan. 31, 2021
Assets
Operating lease assets	$ 5,903	$ 5,962
Finance lease assets	2,894	2,493
Total lease assets	8,797	8,455
Current:
Operating lease liabilities	827	828
Finance lease liabilities	188	66
Long-term:
Operating lease liabilities	5,290	5,356
Finance lease liabilities	3,033	2,700
Total lease liabilities	9,338	8,950
Finance lease asset accumulated amortization	$ 987	$ 815

Property and Leases - Other Lea

Property and Leases - Other Lease Information (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020
Leases [Abstract]
Lease assets obtained in exchange for new operating lease liabilities	$ 637	$ 500
Lease assets obtained in exchange for new finance lease liabilities	$ 581	$ 1,662

Debt - Short-term Debt (Details

Debt - Short-term Debt (Details) - USD ($)	9 Months Ended
	Oct. 31, 2021	Jan. 31, 2021
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 3,000,000,000
Maximum amount outstanding during period	11,000,000
Commercial paper	0	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	3,000,000,000
Revolving Credit Facility | 5-year Back-up Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 1,000,000,000
Expiration period	364 days
Revolving Credit Facility | Five year back up credit facility expiring December 2020
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 2,000,000,000
Expiration period	5 years

Debt - Long-term Debt (Details)

Debt - Long-term Debt (Details) $ in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2021USD ($)	Oct. 31, 2021	Sep. 30, 2021USD ($)tranche
Debt Instrument [Line Items]
Number of tranches of senior notes | tranche			3
Debt instrument redemption price (in percentage)		100.00%
Debt instrument change of control redemption price (in percentage)		101.00%
Senior notes | September 2021 Issuance
Debt Instrument [Line Items]
Issuance costs			$ 17
Senior notes | Senior Notes Due September 2028, 1.50%, First Tranche
Debt Instrument [Line Items]
Debt instrument face amount			$ 1,000
Debt instrument interest rate (in percentage)			1.50%
Debt instrument unamortized discount			$ 4
Senior notes | Senior Notes Due September 2031, 1.875%, Second Tranche
Debt Instrument [Line Items]
Debt instrument face amount			$ 1,000
Debt instrument interest rate (in percentage)			1.875%
Debt instrument unamortized discount			$ 6
Senior notes | Senior Notes Due September 2051, 2.75%, Third Tranche
Debt Instrument [Line Items]
Debt instrument face amount			$ 1,000
Debt instrument interest rate (in percentage)			2.75%
Debt instrument unamortized discount			$ 11
Senior notes | Senior Notes Due April 2021, 2.00%
Debt Instrument [Line Items]
Debt instrument interest rate (in percentage)	2.00%
Repayments of debt	$ 1,350

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		9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020	Oct. 31, 2021	Nov. 01, 2020	Jan. 31, 2021
Common stock:
Balance at beginning of period (in shares)	1,791	1,788	1,789	1,786
Shares issued under employee stock plans (in shares)	0	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)	(735)	(712)	(712)	(709)
Repurchases of common stock (in shares)	(10)	0	(33)	(3)
Balance at end of period (in shares)	(745)	(712)	(745)	(712)
Shares outstanding at end of period (in shares)	1,046	1,076	1,046	1,076	1,077
Cash dividends per share (in usd per share)	$ 1.65	$ 1.50	$ 4.95	$ 4.50

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - 2021 Share Repurchase Program - USD ($) $ in Billions	Oct. 31, 2021	May 31, 2021
Equity, Class of Treasury Stock [Line Items]
Share repurchase amount		$ 20
Remaining authorized repurchase amount	$ 14.1

Stockholders' Equity - Repurcha

Stockholders' Equity - Repurchases of Common Stock (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020	Oct. 31, 2021	Nov. 01, 2020
Equity [Abstract]
Total number of shares repurchased	10	0	33	3
Total amount paid for shares repurchased	$ 3,500	$ 0	$ 10,500	$ 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	Oct. 31, 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	106	172
Derivative agreements – liabilities	(178)	(71)
Total	(72)	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	Oct. 31, 2021	Jan. 31, 2021
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 35,927	$ 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	$ 41,411	$ 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		9 Months Ended
	Oct. 31, 2021	Nov. 01, 2020	Oct. 31, 2021	Nov. 01, 2020
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Basic weighted average common shares (in shares)	1,049	1,073	1,059	1,074
Effect of potentially dilutive securities (in shares)	4	5	4	4
Diluted weighted average common shares (in shares)	1,053	1,078	1,063	1,078
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