The Home Depot, Inc. (HD) 10-Q 23 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	May 01, 2022	May 17, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 1, 2022
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		1,027,754,946
Entity Central Index Key	0000354950
Current Fiscal Year End Date	--01-29
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	May 01, 2022	Jan. 30, 2022
Current assets:
Cash and cash equivalents	$ 2,844	$ 2,343
Receivables, net	3,936	3,426
Merchandise inventories	25,297	22,068
Other current assets	1,790	1,218
Total current assets	33,867	29,055
Net property and equipment	25,166	25,199
Operating lease right-of-use assets	5,980	5,968
Goodwill	7,450	7,449
Other assets	4,104	4,205
Total assets	76,567	71,876
Current liabilities:
Short-term debt	0	1,035
Accounts payable	15,367	13,462
Accrued salaries and related expenses	2,008	2,426
Sales taxes payable	1,139	848
Deferred revenue	3,675	3,596
Current installments of long-term debt	2,463	2,447
Current operating lease liabilities	859	830
Other accrued expenses	4,876	4,049
Total current liabilities	30,387	28,693
Long-term debt, excluding current installments	39,158	36,604
Long-term operating lease liabilities	5,335	5,353
Other long-term liabilities	3,396	2,922
Total liabilities	78,276	73,572
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,793 shares at May 1, 2022 and 1,792 shares at January 30, 2022; outstanding: 1,029 shares at May 1, 2022 and 1,035 shares at January 30, 2022	90	90
Paid-in capital	12,079	12,132
Retained earnings	69,849	67,580
Accumulated other comprehensive loss	(683)	(704)
Treasury stock, at cost, 764 shares at May 1, 2022 and 757 shares at January 30, 2022	(83,044)	(80,794)
Total stockholders’ (deficit) equity	(1,709)	(1,696)
Total liabilities and stockholders’ equity	$ 76,567	$ 71,876

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	May 01, 2022	Jan. 30, 2022
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)	1,793	1,792
Common stock, shares outstanding (in shares)	1,029	1,035
Treasury stock, shares (in shares)	764	757

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	May 01, 2022	May 02, 2021
Income Statement [Abstract]
Net sales	$ 38,908	$ 37,500
Cost of sales	25,763	24,758
Gross profit	13,145	12,742
Operating expenses:
Selling, general and administrative	6,610	6,374
Depreciation and amortization	606	587
Total operating expenses	7,216	6,961
Operating income	5,929	5,781
Interest and other (income) expense:
Interest income and other, net	(3)	(6)
Interest expense	372	339
Interest and other, net	369	333
Earnings before provision for income taxes	5,560	5,448
Provision for income taxes	1,329	1,303
Net earnings	$ 4,231	$ 4,145
Basic weighted average common shares (in shares)	1,030	1,071
Basic earnings per share (in dollars per share)	$ 4.11	$ 3.87
Diluted weighted average common shares (in shares)	1,034	1,075
Diluted earnings per share (in dollars per share)	$ 4.09	$ 3.86

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	May 01, 2022	May 02, 2021
Statement of Comprehensive Income [Abstract]
Net earnings	$ 4,231	$ 4,145
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax	20	34
Cash flow hedges	1	2
Other	0	27
Total other comprehensive income (loss), net of tax	21	63
Comprehensive income	$ 4,252	$ 4,208

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 Jan. 31, 2021		$ 89	$ 11,540	$ 58,134	$ (671)	$ (65,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans		1	(117)
Stock-based compensation expense			132
Net earnings	$ 4,145			4,145
Cash dividends				(1,775)
Foreign currency translation adjustments, net of tax	34				34
Cash flow hedges, net of tax	2				2
Other, net of tax	27				27
Repurchases of common stock	(4,000)					(4,000)
Balance at end of period at May. 02, 2021	1,748	90	11,555	60,504	(608)	(69,793)
Balance at beginning of period at Jan. 30, 2022	(1,696)	90	12,132	67,580	(704)	(80,794)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans		0	(154)
Stock-based compensation expense			101
Net earnings	4,231			4,231
Cash dividends				(1,962)
Foreign currency translation adjustments, net of tax	20				20
Cash flow hedges, net of tax	1				1
Other, net of tax	0				0
Repurchases of common stock	(2,250)					(2,250)
Balance at end of period at May. 01, 2022	$ (1,709)	$ 90	$ 12,079	$ 69,849	$ (683)	$ (83,044)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	May 01, 2022	May 02, 2021
Cash Flows from Operating Activities:
Net earnings	$ 4,231	$ 4,145
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization	727	703
Stock-based compensation expense	115	146
Changes in receivables, net	(489)	(640)
Changes in merchandise inventories	(3,226)	(2,519)
Changes in other current assets	(589)	(277)
Changes in accounts payable and accrued expenses	1,744	3,013
Changes in deferred revenue	79	586
Changes in income taxes payable	1,121	1,138
Changes in deferred income taxes	(44)	(87)
Other operating activities	120	102
Net cash provided by operating activities	3,789	6,310
Cash Flows from Investing Activities:
Capital expenditures	(704)	(524)
Other investing activities	3	(4)
Net cash used in investing activities	(701)	(528)
Cash Flows from Financing Activities:
Repayments of short-term debt, net	(1,035)	0
Proceeds from long-term debt, net of discounts	3,957	0
Repayments of long-term debt	(1,054)	(1,390)
Repurchases of common stock	(2,308)	(3,788)
Proceeds from sales of common stock	5	13
Cash dividends	(1,962)	(1,775)
Other financing activities	(182)	(130)
Net cash used in financing activities	(2,579)	(7,070)
Change in cash and cash equivalents	509	(1,288)
Effect of exchange rate changes on cash and cash equivalents	(8)	41
Cash and cash equivalents at beginning of period	2,343	7,895
Cash and cash equivalents at end of period	2,844	6,648
Supplemental Disclosures:
Cash paid for interest, net of interest capitalized	415	382
Cash paid for income taxes	$ 213	$ 226

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	May 01, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business The Home Depot, Inc., together with its subsidiaries (the “Company,” “Home Depot,” “we,” “our” or “us”), is a home improvement retailer that sells a wide assortment of building materials, home improvement products, lawn and garden products, décor items, and facilities maintenance, repair and operations products, and provides a number of services, in stores and online. We operate in the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico, each representing one of our three operating segments, which we aggregate into one reportable segment due to their similar operating and financial characteristics. Basis of Presentation The accompanying consolidated financial statements of 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 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 2021 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2021 Form 10-K. Recent Accounting Pronouncements We did not adopt any new accounting pronouncements during the three months ended May 1, 2022 that had a material impact on our consolidated financial condition, results of operations or cash flows. Recent accounting pronouncements pending adoption not discussed in the 2021 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	3 Months Ended
	May 01, 2022
Revenue from Contract with Customer [Abstract]
Net Sales	NET SALES The following table presents net sales, classified by geography: Three Months Ended in millions May 1, May 2, Net sales – in the U.S. $ 36,006 $ 34,717 Net sales – outside the U.S. 2,902 2,783 Net sales $ 38,908 $ 37,500 The following table presents net sales by products and services: Three Months Ended in millions May 1, May 2, Net sales – products $ 37,465 $ 36,271 Net sales – services 1,443 1,229 Net sales $ 38,908 $ 37,500 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 in millions May 1, May 2, Building Materials $ 14,869 $ 13,660 Décor 12,874 11,882 Hardlines 11,165 11,958 Net sales $ 38,908 $ 37,500 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 May 1, 2022 and January 30, 2022, deferred revenue for products and services was $2.7 billion and $2.6 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 May 1, 2022 and January 30, 2022, our performance obligations for unredeemed gift cards were $944 million and $1.0 billion, 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 months ended May 1, 2022 and May 2, 2021.

Property and Leases

Property and Leases	3 Months Ended
	May 01, 2022
Leases [Abstract]
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment includes accumulated depreciation and amortization of $26.6 billion as of May 1, 2022 and $26.1 billion as of January 30, 2022. 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 Classification May 1, January 30, Assets: Operating lease assets Operating lease right-of-use assets $ 5,980 $ 5,968 Finance lease assets (1) Net property and equipment 2,972 2,896 Total lease assets $ 8,952 $ 8,864 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 859 $ 830 Finance lease liabilities Current installments of long-term debt 214 198 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,335 5,353 Finance lease liabilities Long-term debt, excluding current installments 3,112 3,038 Total lease liabilities $ 9,520 $ 9,419 ————— (1) Finance lease assets are recorded net of accumulated amortization of $1.1 billion as of May 1, 2022 and $1.0 billion as of January 30, 2022. The following table presents supplemental non-cash information related to leases: Three Months Ended in millions May 1, May 2, Lease assets obtained in exchange for new operating lease liabilities $ 256 $ 164 Lease assets obtained in exchange for new finance lease liabilities 148 200

Debt and Derivative Instruments

Debt and Derivative Instruments	3 Months Ended
	May 01, 2022
Debt Disclosure [Abstract]
Debt and Derivative Instruments	DEBT AND DERIVATIVE INSTRUMENTS Short-Term Debt We have commercial paper programs that allow for borrowings up to $3.0 billion. All of our short-term borrowings in the first three months of fiscal 2022 were under these commercial paper programs, and the maximum amount outstanding at any time was $2.7 billion. 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 2022. At May 1, 2022, there were no outstanding borrowings under our commercial paper programs, and at January 30, 2022, we had $1.0 billion of outstanding borrowings under our commercial paper programs. Long-Term Debt March 2022 Issuance. In March 2022, we issued four tranches of senior notes. • The first tranche consisted of $500 million of 2.70% senior notes due April 15, 2025 (the “2025 notes”) at a discount of $1 million. Interest on the 2025 notes is due semi-annually on April 15 and October 15 of each year, beginning October 15, 2022. • The second tranche consisted of $750 million of 2.875% senior notes due April 15, 2027 (the “2027 notes”) at a discount of $4 million. Interest on the 2027 notes is due semi-annually on April 15 and October 15 of each year, beginning October 15, 2022. • The third tranche consisted of $1.25 billion of 3.25% senior notes due April 15, 2032 (the “2032 notes”) at a discount of $6 million. Interest on the 2032 notes is due semi-annually on April 15 and October 15 of each year, beginning October 15, 2022. • The fourth tranche consisted of $1.5 billion of 3.625% senior notes due April 15, 2052 (the “2052 notes”) at a discount of $32 million (together with the 2025 notes, the 2027 notes, and the 2032 notes, the “March 2022 issuance”). Interest on the 2052 notes is due semi-annually on April 15 and October 15 of each year, beginning October 15, 2022. • Issuance costs for the March 2022 issuance totaled $22 million. The 2025 notes, 2027 notes, 2032 notes, and 2052 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. Prior to the Par Call Date, as defined in the notes, 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. On or after the Par Call Date, the redemption price is equal to 100% of the principal amount of the notes. Additionally, if a Change in Control Triggering Event occurs, as defined in the notes, holders of all such 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 indenture governing the notes does 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 indenture governing the notes contains various customary covenants; however, none are expected to impact our liquidity or capital resources. Repayments . In March 2022, we repaid our $700 million 3.25% senior notes and $300 million floating rate senior notes at maturity. In May 2022, subsequent to the end of our first fiscal quarter, we fully repaid our $1.25 billion 2.625% senior notes, which had a maturity date of June 2022, at the Par Call Date for the notes. Derivative Instruments and Hedging Activities We had outstanding interest rate swap agreements with combined notional amounts of $5.4 billion at both May 1, 2022 and January 30, 2022. These agreements are accounted for as fair value hedges that swap fixed for variable rate interest to hedge changes in the fair values of certain senior notes. At May 1, 2022, the fair values of these agreements totaled $652 million, with $660 million recognized in other long-term liabilities and $8 million recognized in other assets on the consolidated balance sheet. At January 30, 2022, the fair values of these agreements totaled $191 million, with $249 million recognized in other long-term liabilities and $58 million recognized in other assets on the consolidated balance sheet. All of our interest rate swap agreements designated as fair value hedges meet the shortcut method requirements under GAAP. Accordingly, the changes in the fair values of these agreements offset the changes in the fair value of the hedged long-term debt. There were no material changes to the other hedging arrangements disclosed in our 2021 Form 10-K, and all related activity was immaterial for the periods presented within this document. Collateral . We generally enter into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. To further limit our credit risk, we enter into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain derivative instruments exceeds or falls below contractually established thresholds. The cash collateral posted by the Company related to derivative instruments under our collateral security arrangements was $489 million as of May 1, 2022, which was recorded in other current assets on the consolidated balance sheet. We did not hold any cash collateral as of May 1, 2022, and cash collateral both held and posted was immaterial as of January 30, 2022.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	May 01, 2022
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 May 1, May 2, Common stock: Balance at beginning of period 1,792 1,789 Shares issued under employee stock plans 1 1 Balance at end of period 1,793 1,790 Treasury stock: Balance at beginning of period (757) (712) Repurchases of common stock (7) (13) Balance at end of period (764) (725) Shares outstanding at end of period 1,029 1,065 Cash dividends per share $ 1.90 $ 1.65 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 May 1, 2022, approximately $7.4 billion of the $20.0 billion share repurchase authorization remained available. 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 May 1, May 2, Total number of shares repurchased 7 13 Total cost of shares repurchased $ 2,250 $ 4,000

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	May 01, 2022
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. The levels of the fair value hierarchy are: • Level 1: observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than quoted prices in active markets in Level 1 that are either directly or indirectly observable; and • Level 3: unobservable inputs for which little or no market data exists, therefore requiring management judgment to develop the Company’s own models with estimates and assumptions. 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: May 1, 2022 January 30, 2022 in millions Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative agreements – assets $ — $ 8 $ — $ — $ 58 $ — Derivative agreements – liabilities — (661) — — (249) — Total $ — $ (653) $ — $ — $ (191) $ — 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. Our derivative instruments are discussed further in Note 4 . 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 months ended May 1, 2022 or May 2, 2021. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, receivables, accounts payable, and short-term debt approximate fair value due to their short-term nature. The following table presents the aggregate fair values and carrying values of our senior notes: May 1, 2022 January 30, 2022 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 36,896 $ 38,295 $ 39,397 $ 35,815

Weighted Average Common Shares

Weighted Average Common Shares	3 Months Ended
	May 01, 2022
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 in millions May 1, May 2, Basic weighted average common shares 1,030 1,071 Effect of potentially dilutive securities (1) 4 4 Diluted weighted average common shares 1,034 1,075 Anti-dilutive securities excluded from diluted weighted average common shares 1 — ————— (1) Represents the dilutive impact of stock-based awards.

Contingencies

Contingencies	3 Months Ended
	May 01, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingencies	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.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	May 01, 2022
Accounting Policies [Abstract]
Business	Business The Home Depot, Inc., together with its subsidiaries (the “Company,” “Home Depot,” “we,” “our” or “us”), is a home improvement retailer that sells a wide assortment of building materials, home improvement products, lawn and garden products, décor items, and facilities maintenance, repair and operations products, and provides a number of services, in stores and online. We operate in the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico, each representing one of our three operating segments, which we aggregate into one reportable segment due to their similar operating and financial characteristics.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of 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 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 2021 Form 10-K.
Recent Accounting Pronouncements	Recent Accounting Pronouncements We did not adopt any new accounting pronouncements during the three months ended May 1, 2022 that had a material impact on our consolidated financial condition, results of operations or cash flows. Recent accounting pronouncements pending adoption not discussed in the 2021 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)	3 Months Ended
	May 01, 2022
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 in millions May 1, May 2, Net sales – in the U.S. $ 36,006 $ 34,717 Net sales – outside the U.S. 2,902 2,783 Net sales $ 38,908 $ 37,500
Summary of net sales by products and services	The following table presents net sales by products and services: Three Months Ended in millions May 1, May 2, Net sales – products $ 37,465 $ 36,271 Net sales – services 1,443 1,229 Net sales $ 38,908 $ 37,500
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 in millions May 1, May 2, Building Materials $ 14,869 $ 13,660 Décor 12,874 11,882 Hardlines 11,165 11,958 Net sales $ 38,908 $ 37,500

Property and Leases (Tables)

Property and Leases (Tables)	3 Months Ended
	May 01, 2022
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 Classification May 1, January 30, Assets: Operating lease assets Operating lease right-of-use assets $ 5,980 $ 5,968 Finance lease assets (1) Net property and equipment 2,972 2,896 Total lease assets $ 8,952 $ 8,864 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 859 $ 830 Finance lease liabilities Current installments of long-term debt 214 198 Long-term: Operating lease liabilities Long-term operating lease liabilities 5,335 5,353 Finance lease liabilities Long-term debt, excluding current installments 3,112 3,038 Total lease liabilities $ 9,520 $ 9,419 —————
Schedule of Cash Flow, Supplemental Disclosures	The following table presents supplemental non-cash information related to leases: Three Months Ended in millions May 1, May 2, Lease assets obtained in exchange for new operating lease liabilities $ 256 $ 164 Lease assets obtained in exchange for new finance lease liabilities 148 200

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	May 01, 2022
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 May 1, May 2, Common stock: Balance at beginning of period 1,792 1,789 Shares issued under employee stock plans 1 1 Balance at end of period 1,793 1,790 Treasury stock: Balance at beginning of period (757) (712) Repurchases of common stock (7) (13) Balance at end of period (764) (725) Shares outstanding at end of period 1,029 1,065 Cash dividends per share $ 1.90 $ 1.65
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 May 1, May 2, Total number of shares repurchased 7 13 Total cost of shares repurchased $ 2,250 $ 4,000

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	May 01, 2022
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: May 1, 2022 January 30, 2022 in millions Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative agreements – assets $ — $ 8 $ — $ — $ 58 $ — Derivative agreements – liabilities — (661) — — (249) — Total $ — $ (653) $ — $ — $ (191) $ —
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: May 1, 2022 January 30, 2022 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 36,896 $ 38,295 $ 39,397 $ 35,815

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	3 Months Ended
	May 01, 2022
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 in millions May 1, May 2, Basic weighted average common shares 1,030 1,071 Effect of potentially dilutive securities (1) 4 4 Diluted weighted average common shares 1,034 1,075 Anti-dilutive securities excluded from diluted weighted average common shares 1 — ————— (1) Represents the dilutive impact of stock-based awards.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended
	May 01, 2022segment
Accounting Policies [Abstract]
Number of operating segments	3
Number of reportable segments	1

Net Sales (Details)

Net Sales (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2022	May 02, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 38,908	$ 37,500
Products
Disaggregation of Revenue [Line Items]
Net sales	37,465	36,271
Services
Disaggregation of Revenue [Line Items]
Net sales	1,443	1,229
Building Materials
Disaggregation of Revenue [Line Items]
Net sales	14,869	13,660
Décor
Disaggregation of Revenue [Line Items]
Net sales	12,874	11,882
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	11,165	11,958
In the U.S.
Disaggregation of Revenue [Line Items]
Net sales	36,006	34,717
Outside the U.S.
Disaggregation of Revenue [Line Items]
Net sales	$ 2,902	$ 2,783

Net Sales - Narrative (Details)

Net Sales - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2022	Jan. 30, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 2,700	$ 2,600
General redemption period	6 months
Gift card performance obligations	$ 944	$ 1,000

Property and Leases - Narrative

Property and Leases - Narrative (Details) - USD ($) $ in Billions	May 01, 2022	Jan. 30, 2022
Leases [Abstract]
Accumulated depreciation and amortization	$ 26.6	$ 26.1

Property and Leases - Schedule

Property and Leases - Schedule of assets and liabilities related to operating and finance leases (Details) - USD ($) $ in Millions	May 01, 2022	Jan. 30, 2022
Assets
Operating lease assets	$ 5,980	$ 5,968
Finance lease assets	2,972	2,896
Total lease assets	8,952	8,864
Current:
Operating lease liabilities	859	830
Finance lease liabilities	214	198
Long-term:
Operating lease liabilities	5,335	5,353
Finance lease liabilities	3,112	3,038
Total lease liabilities	9,520	9,419
Finance lease asset accumulated amortization	$ 1,100	$ 1,000

Property and Leases - Other Lea

Property and Leases - Other Lease Information (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2022	May 02, 2021
Leases [Abstract]
Lease assets obtained in exchange for new operating lease liabilities	$ 256	$ 164
Lease assets obtained in exchange for new finance lease liabilities	$ 148	$ 200

Debt and Derivative Instrumen_2

Debt and Derivative Instruments - Short-term Debt (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2022	Jan. 30, 2022
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 3,000
Maximum amount outstanding during period	2,700
Short-term debt	0	$ 1,035
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	3,000
Revolving Credit Facility | Five year back up credit facility expiring December 2023
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 2,000
Expiration period	5 years
Revolving Credit Facility | 364-day Back-up Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 1,000
Expiration period	364 days

Debt and Derivative Instrumen_3

Debt and Derivative Instruments - Long-term Debt (Details) $ in Millions	1 Months Ended
	May 23, 2022USD ($)	Mar. 31, 2022USD ($)tranche
Debt Instrument [Line Items]
Number of tranches of senior notes | tranche		4
Senior notes | March 2022 Issuance
Debt Instrument [Line Items]
Issuance costs		$ 22
Debt instrument redemption price (in percentage)		100.00%
Debt instrument change of control redemption price (in percentage)		101.00%
Senior notes | Senior Notes Due April 2025, 2.700%, First Tranche
Debt Instrument [Line Items]
Debt instrument face amount		$ 500
Debt instrument interest rate (in percentage)		2.70%
Debt instrument unamortized discount		$ 1
Senior notes | Senior Notes Due April 2027, 2.875%, Second Tranche
Debt Instrument [Line Items]
Debt instrument face amount		$ 750
Debt instrument interest rate (in percentage)		2.875%
Debt instrument unamortized discount		$ 4
Senior notes | Senior Notes Due April 2032, 3.250%, Third Tranche
Debt Instrument [Line Items]
Debt instrument face amount		$ 1,250
Debt instrument interest rate (in percentage)		3.25%
Debt instrument unamortized discount		$ 6
Senior notes | Senior Notes Due April 2052, 3.625%, Fourth Tranche
Debt Instrument [Line Items]
Debt instrument face amount		$ 1,500
Debt instrument interest rate (in percentage)		3.625%
Debt instrument unamortized discount		$ 32
Senior notes | 3.25% Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate (in percentage)		3.25%
Repayments of debt		$ 700
Senior notes | 2.625% Senior Notes Due June 2022 | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate (in percentage)	2.625%
Repayments of debt	$ 1,250
Floating Rate Senior Notes
Debt Instrument [Line Items]
Repayments of debt		$ 300

Debt and Derivative Instrumen_4

Debt and Derivative Instruments - Derivative Instruments (Details) - USD ($) $ in Millions	May 01, 2022	Jan. 30, 2022
Derivative [Line Items]
Cash collateral received	$ 489
Interest rate swap | Fair value hedging
Derivative [Line Items]
Notional amount	5,400	$ 5,400
Fair value agreements	652	191
Interest rate swap | Fair value hedging | Other long-term liabilities
Derivative [Line Items]
Fair value agreements	660	249
Interest rate swap | Fair value hedging | Other assets
Derivative [Line Items]
Fair value agreements	$ 8	$ 58

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
	May 01, 2022	May 02, 2021	Jan. 30, 2022
Common stock:
Balance at beginning of period (in shares)	1,792	1,789
Shares issued under employee stock plans (in shares)	1	1
Balance at end of period (in shares)	1,793	1,790
Treasury stock:
Balance at beginning of period (in shares)	(757)	(712)
Repurchases of common stock (in shares)	(7)	(13)
Balance at end of period (in shares)	(764)	(725)
Shares outstanding at end of period (in shares)	1,029	1,065	1,035
Cash dividends per share (in usd per share)	$ 1.90	$ 1.65

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - 2021 Share Repurchase Program - USD ($) $ in Billions	May 01, 2022	May 31, 2021
Equity, Class of Treasury Stock [Line Items]
Share repurchase amount		$ 20
Remaining authorized repurchase amount	$ 7.4

Stockholders' Equity - Repurcha

Stockholders' Equity - Repurchases of Common Stock (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	May 01, 2022	May 02, 2021
Equity [Abstract]
Total number of shares repurchased	7	13
Total cost of shares repurchased	$ 2,250	$ 4,000

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	May 01, 2022	Jan. 30, 2022
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
Level 2
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items]
Derivative agreements – assets	8	58
Derivative agreements – liabilities	(661)	(249)
Total	(653)	(191)
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	May 01, 2022	Jan. 30, 2022
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 38,295	$ 35,815
Senior notes | Fair Value measurements nonrecurring | Fair Value (Level 1)
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Fair value of senior notes	$ 36,896	$ 39,397

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
	May 01, 2022	May 02, 2021
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Basic weighted average common shares (in shares)	1,030	1,071
Effect of potentially dilutive securities (in shares)	4	4
Diluted weighted average common shares (in shares)	1,034	1,075
Anti-dilutive securities excluded from diluted weighted average common shares (in shares)	1	0