The Home Depot, Inc. (HD) 10-Q 22 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 30, 2023	May 16, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2023
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		1,005,376,130
Entity Central Index Key	0000354950
Current Fiscal Year End Date	--01-28
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Apr. 30, 2023	Jan. 29, 2023
Current assets:
Cash and cash equivalents	$ 1,260	$ 2,757
Receivables, net	4,213	3,317
Merchandise inventories	25,371	24,886
Other current assets	1,579	1,511
Total current assets	32,423	32,471
Net property and equipment	25,674	25,631
Operating lease right-of-use assets	6,931	6,941
Goodwill	7,447	7,444
Other assets	3,911	3,958
Total assets	76,386	76,445
Current liabilities:
Accounts payable	12,630	11,443
Accrued salaries and related expenses	1,931	1,991
Sales taxes payable	683	528
Deferred revenue	3,119	3,064
Income taxes payable	1,054	50
Current installments of long-term debt	1,338	1,231
Current operating lease liabilities	966	945
Other accrued expenses	3,725	3,858
Total current liabilities	25,446	23,110
Long-term debt, excluding current installments	40,915	41,962
Long-term operating lease liabilities	6,209	6,226
Deferred income taxes	954	1,019
Other long-term liabilities	2,500	2,566
Total liabilities	76,024	74,883
Contingencies (Note 8)
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,795 shares at April 30, 2023 and 1,794 shares at January 29, 2023; outstanding: 1,007 shares at April 30, 2023 and 1,016 shares at January 29, 2023	90	90
Paid-in capital	12,584	12,592
Retained earnings	78,651	76,896
Accumulated other comprehensive loss	(637)	(718)
Treasury stock, at cost, 788 shares at April 30, 2023 and 778 shares at January 29, 2023	(90,326)	(87,298)
Total stockholders’ equity	362	1,562
Total liabilities and stockholders’ equity	$ 76,386	$ 76,445

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Apr. 30, 2023	Jan. 29, 2023
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)	1,795	1,794
Common stock, shares outstanding (in shares)	1,007	1,016
Treasury stock, shares (in shares)	788	778

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Apr. 30, 2023	May 01, 2022
Income Statement [Abstract]
Net sales	$ 37,257	$ 38,908
Cost of sales	24,700	25,763
Gross profit	12,557	13,145
Operating expenses:
Selling, general and administrative	6,355	6,610
Depreciation and amortization	651	606
Total operating expenses	7,006	7,216
Operating income	5,551	5,929
Interest and other (income) expense:
Interest income and other, net	(33)	(3)
Interest expense	474	372
Interest and other, net	441	369
Earnings before provision for income taxes	5,110	5,560
Provision for income taxes	1,237	1,329
Net earnings	$ 3,873	$ 4,231
Basic weighted average common shares (in shares)	1,010	1,030
Basic earnings per share (in dollars per share)	$ 3.83	$ 4.11
Diluted weighted average common shares (in shares)	1,013	1,034
Diluted earnings per share (in dollars per share)	$ 3.82	$ 4.09

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2023	May 01, 2022
Statement of Comprehensive Income [Abstract]
Net earnings	$ 3,873	$ 4,231
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	79	20
Cash flow hedges	2	1
Total other comprehensive income (loss), net of tax	81	21
Comprehensive income	$ 3,954	$ 4,252

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - 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. 30, 2022		$ 90	$ 12,132	$ 67,580	$ (704)	$ (80,794)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans, net		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
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)
Balance at beginning of period at Jan. 29, 2023	1,562	90	12,592	76,896	(718)	(87,298)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans, net		0	(119)
Stock-based compensation expense			111
Net earnings	3,873			3,873
Cash dividends				(2,118)
Foreign currency translation adjustments, net of tax	79				79
Cash flow hedges, net of tax	2				2
Repurchases of common stock	(3,028)					(3,028)
Balance at end of period at Apr. 30, 2023	$ 362	$ 90	$ 12,584	$ 78,651	$ (637)	$ (90,326)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2023	May 01, 2022
Cash Flows from Operating Activities:
Net earnings	$ 3,873	$ 4,231
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization	793	727
Stock-based compensation expense	124	115
Changes in receivables, net	(893)	(489)
Changes in merchandise inventories	(457)	(3,226)
Changes in other current assets	(60)	(589)
Changes in accounts payable and accrued expenses	1,158	1,744
Changes in deferred revenue	57	79
Changes in income taxes payable	1,004	1,121
Changes in deferred income taxes	(59)	(44)
Other operating activities	74	120
Net cash provided by operating activities	5,614	3,789
Cash Flows from Investing Activities:
Capital expenditures	(905)	(704)
Other investing activities	2	3
Net cash used in investing activities	(903)	(701)
Cash Flows from Financing Activities:
Repayments of short-term debt, net	0	(1,035)
Proceeds from long-term debt, net of discounts	0	3,957
Repayments of long-term debt	(1,063)	(1,054)
Repurchases of common stock	(2,887)	(2,308)
Proceeds from sales of common stock	15	5
Cash dividends	(2,118)	(1,962)
Other financing activities	(135)	(182)
Net cash used in financing activities	(6,188)	(2,579)
Change in cash and cash equivalents	(1,477)	509
Effect of exchange rate changes on cash and cash equivalents	(20)	(8)
Cash and cash equivalents at beginning of period	2,757	2,343
Cash and cash equivalents at end of period	1,260	2,844
Supplemental Disclosures:
Cash paid for interest, net of interest capitalized	596	415
Cash paid for income taxes	$ 185	$ 213

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Apr. 30, 2023
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, in stores and online. We also provide a number of services, including home improvement installation services and tool equipment rental. 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 the similar nature of their operations and economic 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 2022 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2022 Form 10-K. Recently Adopted Accounting Pronouncements ASU No. 2022-04. In September 2022, the FASB issued ASU No. 2022-04, “Liabilities—Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations,” to enhance the transparency of supplier finance programs used by an entity in connection with the purchase of goods and services. The standard requires entities that use supplier finance programs to disclose the key terms, including a description of payment terms, the confirmed amount outstanding under the program at the end of each reporting period, a description of where those obligations are presented on the balance sheet, and an annual rollforward, including the amount of obligations confirmed and the amount paid during the period. The guidance does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. ASU No. 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the required rollforward information, which is effective for fiscal years beginning after December 15, 2023. On January 30, 2023, we adopted ASU No. 2022-04 with no impact to our consolidated financial condition, results of operations, or cash flows. We have a supplier finance program whereby we have entered into payment processing agreements with several financial institutions. Under these agreements, the financial institutions act as our paying agents with respect to accounts payable due to certain suppliers. Participating suppliers may, at their sole discretion, elect to receive payment for one or more of our payment obligations, prior to their scheduled due dates, at a discounted price from participating financial institutions. We are not a party to the agreements between the participating financial institutions and the suppliers in connection with the program, and our rights and obligations to our suppliers are not impacted. We do not reimburse suppliers for any costs they incur for participation in the program. We have not pledged any assets as security or provided any guarantees as part of the program. We have no economic interest in our suppliers’ decision to participate in the program. Our responsibility is limited to making payment to the respective financial institution according to the terms originally negotiated with the supplier, regardless of whether the supplier elects to receive early payment from the financial institution. The payment terms we negotiate with our suppliers are consistent, irrespective of whether a supplier participates in the program. Our current payment terms with a majority of our suppliers generally range from 30 to 60 days, which we deem to be commercially reasonable. Our outstanding payment obligations under our supplier finance program were $334 million at April 30, 2023, and $480 million at January 29, 2023 and are recorded within accounts payable on the consolidated balance sheets. The associated payments are included in operating activities within the consolidated statements of cash flows. Recently Issued Accounting Pronouncements There were no significant changes in recently issued accounting pronouncements pending adoption from those disclosed in the 2022 Form 10-K. Recent accounting pronouncements pending adoption not discussed in the 2022 Form 10-K are either not applicable 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
	Apr. 30, 2023
Revenue from Contract with Customer [Abstract]
Net Sales	NET SALES The following table presents net sales, classified by geography: Three Months Ended in millions April 30, May 1, Net sales – in the U.S. $ 34,507 $ 36,006 Net sales – outside the U.S. 2,750 2,902 Net sales $ 37,257 $ 38,908 The following table presents net sales by products and services: Three Months Ended in millions April 30, May 1, Net sales – products $ 35,888 $ 37,465 Net sales – services 1,369 1,443 Net sales $ 37,257 $ 38,908 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 line (and related services): Three Months Ended in millions April 30, May 1, Building Materials $ 14,079 $ 14,869 Décor 12,251 12,874 Hardlines 10,927 11,165 Net sales $ 37,257 $ 38,908 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 April 30, 2023 and January 29, 2023, deferred revenue for products and services was $2.1 billion and $2.0 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 April 30, 2023 and January 29, 2023, our performance obligations for unredeemed gift cards were $1.0 billion and $1.1 billion, respectively. Gift card breakage income, which is our estimate of the portion of our outstanding gift card balance not expected to be redeemed, was immaterial during the three months ended April 30, 2023 and May 1, 2022.

PROPERTY AND LEASES

PROPERTY AND LEASES	3 Months Ended
	Apr. 30, 2023
Leases [Abstract]
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment includes accumulated depreciation and finance lease amortization of $27.0 billion as of April 30, 2023 and $26.6 billion as of January 29, 2023. Leases The following table presents the consolidated balance sheet classification related to operating and finance leases: in millions Consolidated Balance Sheet Classification April 30, January 29, Assets: Operating lease assets Operating lease right-of-use assets $ 6,931 $ 6,941 Finance lease assets (1) Net property and equipment 2,879 2,899 Total lease assets $ 9,810 $ 9,840 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 966 $ 945 Finance lease liabilities Current installments of long-term debt 239 231 Long-term: Operating lease liabilities Long-term operating lease liabilities 6,209 6,226 Finance lease liabilities Long-term debt, excluding current installments 3,060 3,054 Total lease liabilities $ 10,474 $ 10,456 ————— (1) Finance lease assets are recorded net of accumulated amortization of $1.1 billion as of April 30, 2023 and $1.2 billion as of January 29, 2023. The following table presents supplemental non-cash information related to leases: Three Months Ended in millions April 30, May 1, Lease assets obtained in exchange for new operating lease liabilities $ 254 $ 256 Lease assets obtained in exchange for new finance lease liabilities 114 148

DEBT AND DERIVATIVE INSTRUMENTS

DEBT AND DERIVATIVE INSTRUMENTS	3 Months Ended
	Apr. 30, 2023
Debt Disclosure [Abstract]
Debt and Derivative Instruments	DEBT AND DERIVATIVE INSTRUMENTS Short-Term Debt We have a commercial paper program that allows for borrowings up to $5.0 billion. In connection with our program, we have back-up credit facilities with a consortium of banks for borrowings up to $5.0 billion, which consist of a five-year $3.5 billion credit facility scheduled to expire in July 2027 and a 364-day $1.5 billion credit facility scheduled to expire in July 2023. All of our short-term borrowings in the first three months of fiscal 2023 were under our commercial paper program, and the maximum amount outstanding at any time was $1.5 billion. At April 30, 2023 and January 29, 2023, there were no outstanding borrowings under our commercial paper program. Long-Term Debt We did not have any new issuances of senior notes during the first three months of fiscal 2023. In April 2023, we repaid our $1.0 billion 2.70% senior notes at maturity. Derivative Instruments and Hedging Activities We had outstanding interest rate swap agreements with combined notional amounts of $5.4 billion at both April 30, 2023 and January 29, 2023. 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 April 30, 2023 and January 29, 2023, the fair values of these agreements totaled $740 million and $778 million, respectively, all of which is recognized within other long-term liabilities on the consolidated balance sheets. 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 2022 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 $637 million and $634 million as of April 30, 2023 and January 29, 2023, respectively, which was recorded in other current assets on the consolidated balance sheets. We did not hold any cash collateral as of April 30, 2023 or January 29, 2023.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Apr. 30, 2023
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS' EQUITY Stock Rollforward The following table presents a reconciliation of the number of shares of our common stock outstanding and cash dividends per share: shares in millions Three Months Ended April 30, May 1, Common stock: Shares at beginning of period 1,794 1,792 Shares issued under employee stock plans, net 1 1 Shares at end of period 1,795 1,793 Treasury stock: Shares at beginning of period (778) (757) Repurchases of common stock (10) (7) Shares at end of period (788) (764) Shares outstanding at end of period 1,007 1,029 Cash dividends per share $ 2.09 $ 1.90 Share Repurchases In August 2022, our Board of Directors approved a $15.0 billion share repurchase authorization that replaced the previous authorization of $20.0 billion, which was approved in May 2021. The August 2022 authorization does not have a prescribed expiration date. As of April 30, 2023, $9.5 billion of the $15.0 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 April 30, May 1, Total number of shares repurchased 10 7 Total cost of shares repurchased (1) $ 3,028 $ 2,250 ————— (1) Effective January 1, 2023, the Company’s share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and are recorded as a part of the cost basis of the shares within treasury stock. The cost of shares repurchased may differ from the repurchases of common stock amounts in the consolidated statements of cash flows due to unsettled share repurchases at the end of a period and excise taxes incurred on share repurchases.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Apr. 30, 2023
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: April 30, 2023 January 29, 2023 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ — $ — Derivative agreements – liabilities (740) (778) Total $ (740) $ (778) 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 April 30, 2023 or May 1, 2022. 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: April 30, 2023 January 29, 2023 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 36,992 $ 38,954 $ 38,537 $ 39,908

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	3 Months Ended
	Apr. 30, 2023
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: in millions Three Months Ended April 30, May 1, Basic weighted average common shares 1,010 1,030 Effect of potentially dilutive securities (1) 3 4 Diluted weighted average common shares 1,013 1,034 Anti-dilutive securities excluded from diluted weighted average common shares 1 1 ————— (1) Represents the dilutive impact of stock-based awards.

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Apr. 30, 2023
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
	Apr. 30, 2023
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, in stores and online. We also provide a number of services, including home improvement installation services and tool equipment rental. 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 the similar nature of their operations and economic 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 2022 Form 10-K.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements ASU No. 2022-04. In September 2022, the FASB issued ASU No. 2022-04, “Liabilities—Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations,” to enhance the transparency of supplier finance programs used by an entity in connection with the purchase of goods and services. The standard requires entities that use supplier finance programs to disclose the key terms, including a description of payment terms, the confirmed amount outstanding under the program at the end of each reporting period, a description of where those obligations are presented on the balance sheet, and an annual rollforward, including the amount of obligations confirmed and the amount paid during the period. The guidance does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. ASU No. 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the required rollforward information, which is effective for fiscal years beginning after December 15, 2023. On January 30, 2023, we adopted ASU No. 2022-04 with no impact to our consolidated financial condition, results of operations, or cash flows. We have a supplier finance program whereby we have entered into payment processing agreements with several financial institutions. Under these agreements, the financial institutions act as our paying agents with respect to accounts payable due to certain suppliers. Participating suppliers may, at their sole discretion, elect to receive payment for one or more of our payment obligations, prior to their scheduled due dates, at a discounted price from participating financial institutions. We are not a party to the agreements between the participating financial institutions and the suppliers in connection with the program, and our rights and obligations to our suppliers are not impacted. We do not reimburse suppliers for any costs they incur for participation in the program. We have not pledged any assets as security or provided any guarantees as part of the program. We have no economic interest in our suppliers’ decision to participate in the program. Our responsibility is limited to making payment to the respective financial institution according to the terms originally negotiated with the supplier, regardless of whether the supplier elects to receive early payment from the financial institution. The payment terms we negotiate with our suppliers are consistent, irrespective of whether a supplier participates in the program. Our current payment terms with a majority of our suppliers generally range from 30 to 60 days, which we deem to be commercially reasonable. Our outstanding payment obligations under our supplier finance program were $334 million at April 30, 2023, and $480 million at January 29, 2023 and are recorded within accounts payable on the consolidated balance sheets. The associated payments are included in operating activities within the consolidated statements of cash flows. Recently Issued Accounting Pronouncements There were no significant changes in recently issued accounting pronouncements pending adoption from those disclosed in the 2022 Form 10-K. Recent accounting pronouncements pending adoption not discussed in the 2022 Form 10-K are either not applicable 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
	Apr. 30, 2023
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 April 30, May 1, Net sales – in the U.S. $ 34,507 $ 36,006 Net sales – outside the U.S. 2,750 2,902 Net sales $ 37,257 $ 38,908
Summary of net sales by products and services	The following table presents net sales by products and services: Three Months Ended in millions April 30, May 1, Net sales – products $ 35,888 $ 37,465 Net sales – services 1,369 1,443 Net sales $ 37,257 $ 38,908
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 line (and related services): Three Months Ended in millions April 30, May 1, Building Materials $ 14,079 $ 14,869 Décor 12,251 12,874 Hardlines 10,927 11,165 Net sales $ 37,257 $ 38,908

PROPERTY AND LEASES (Tables)

PROPERTY AND LEASES (Tables)	3 Months Ended
	Apr. 30, 2023
Leases [Abstract]
Schedule of assets and liabilities related to operating and finance leases	The following table presents the consolidated balance sheet classification related to operating and finance leases: in millions Consolidated Balance Sheet Classification April 30, January 29, Assets: Operating lease assets Operating lease right-of-use assets $ 6,931 $ 6,941 Finance lease assets (1) Net property and equipment 2,879 2,899 Total lease assets $ 9,810 $ 9,840 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 966 $ 945 Finance lease liabilities Current installments of long-term debt 239 231 Long-term: Operating lease liabilities Long-term operating lease liabilities 6,209 6,226 Finance lease liabilities Long-term debt, excluding current installments 3,060 3,054 Total lease liabilities $ 10,474 $ 10,456 —————
Schedule of Cash Flow, Supplemental Disclosures	The following table presents supplemental non-cash information related to leases: Three Months Ended in millions April 30, May 1, Lease assets obtained in exchange for new operating lease liabilities $ 254 $ 256 Lease assets obtained in exchange for new finance lease liabilities 114 148

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Apr. 30, 2023
Equity [Abstract]
Schedule of reconciliation of the number of shares of common stock outstanding and cash dividends per share	The following table presents a reconciliation of the number of shares of our common stock outstanding and cash dividends per share: shares in millions Three Months Ended April 30, May 1, Common stock: Shares at beginning of period 1,794 1,792 Shares issued under employee stock plans, net 1 1 Shares at end of period 1,795 1,793 Treasury stock: Shares at beginning of period (778) (757) Repurchases of common stock (10) (7) Shares at end of period (788) (764) Shares outstanding at end of period 1,007 1,029 Cash dividends per share $ 2.09 $ 1.90
Schedule of 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 April 30, May 1, Total number of shares repurchased 10 7 Total cost of shares repurchased (1) $ 3,028 $ 2,250 ————— (1) Effective January 1, 2023, the Company’s share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and are recorded as a part of the cost basis of the shares within treasury stock.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Apr. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of 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: April 30, 2023 January 29, 2023 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ — $ — Derivative agreements – liabilities (740) (778) Total $ (740) $ (778)
Schedule of 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: April 30, 2023 January 29, 2023 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 36,992 $ 38,954 $ 38,537 $ 39,908

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	3 Months Ended
	Apr. 30, 2023
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: in millions Three Months Ended April 30, May 1, Basic weighted average common shares 1,010 1,030 Effect of potentially dilutive securities (1) 3 4 Diluted weighted average common shares 1,013 1,034 Anti-dilutive securities excluded from diluted weighted average common shares 1 1 ————— (1) Represents the dilutive impact of stock-based awards.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions	3 Months Ended
	Apr. 30, 2023 USD ($) segment	Jan. 29, 2023 USD ($)
Supplier Finance Program [Line Items]
Number of operating segments	3
Number of reportable segments	1
Supplier finance program | $	$ 334	$ 480
Minimum
Supplier Finance Program [Line Items]
Payment timing period	30 days
Maximum
Supplier Finance Program [Line Items]
Payment timing period	60 days

NET SALES (Details)

NET SALES (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2023	May 01, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 37,257	$ 38,908
Products
Disaggregation of Revenue [Line Items]
Net sales	35,888	37,465
Services
Disaggregation of Revenue [Line Items]
Net sales	1,369	1,443
Building Materials
Disaggregation of Revenue [Line Items]
Net sales	14,079	14,869
Décor
Disaggregation of Revenue [Line Items]
Net sales	12,251	12,874
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	10,927	11,165
In the U.S.
Disaggregation of Revenue [Line Items]
Net sales	34,507	36,006
Outside the U.S.
Disaggregation of Revenue [Line Items]
Net sales	$ 2,750	$ 2,902

NET SALES - Narrative (Details)

NET SALES - Narrative (Details) - USD ($) $ in Billions	3 Months Ended
	Apr. 30, 2023	Jan. 29, 2023
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 2.1	$ 2
General redemption period	6 months
Gift card performance obligations	$ 1	$ 1.1

PROPERTY AND LEASES - Narrative

PROPERTY AND LEASES - Narrative (Details) - USD ($) $ in Billions	Apr. 30, 2023	Jan. 29, 2023
Leases [Abstract]
Accumulated depreciation and amortization	$ 27	$ 26.6

PROPERTY AND LEASES - Schedule

PROPERTY AND LEASES - Schedule of Assets and Liabilities Related to Operating and Finance Leases (Details) - USD ($) $ in Millions	Apr. 30, 2023	Jan. 29, 2023
Assets
Operating lease assets	$ 6,931	$ 6,941
Finance lease assets	2,879	2,899
Total lease assets	9,810	9,840
Current:
Operating lease liabilities	966	945
Finance lease liabilities	239	231
Long-term:
Operating lease liabilities	6,209	6,226
Finance lease liabilities	3,060	3,054
Total lease liabilities	10,474	10,456
Finance lease asset accumulated amortization	$ 1,100	$ 1,200

PROPERTY AND LEASES - Other Lea

PROPERTY AND LEASES - Other Lease Information (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2023	May 01, 2022
Leases [Abstract]
Lease assets obtained in exchange for new operating lease liabilities	$ 254	$ 256
Lease assets obtained in exchange for new finance lease liabilities	$ 114	$ 148

DEBT AND DERIVATIVE INSTRUMEN_2

DEBT AND DERIVATIVE INSTRUMENTS - Short-term Debt (Details) - USD ($) $ in Billions	1 Months Ended	3 Months Ended
	Apr. 30, 2023	Apr. 30, 2023	Jan. 29, 2023
Debt Instrument [Line Items]
Short-term debt	$ 0	$ 0	$ 0
2.70% Senior Notes Due April 2023 | Senior notes
Debt Instrument [Line Items]
Repayments of debt	$ 1
Debt instrument interest rate (in percentage)	2.70%	2.70%
Commercial Paper
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 5	$ 5
Maximum amount outstanding during period		1.5
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	5	5
Revolving Credit Facility | 5-year Back-up Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	3.5	$ 3.5
Expiration period		5 years
Revolving Credit Facility | 364-day Back-up Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 1.5	$ 1.5
Expiration period		364 days

DEBT AND DERIVATIVE INSTRUMEN_3

DEBT AND DERIVATIVE INSTRUMENTS - Derivative Instruments (Details) - USD ($) $ in Millions	Apr. 30, 2023	Jan. 29, 2023
Derivative [Line Items]
Cash collateral received	$ 637	$ 634
Interest rate swap | Fair value hedging
Derivative [Line Items]
Notional amount	5,400	5,400
Fair value agreements	$ 740	$ 778

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
	Apr. 30, 2023	May 01, 2022	Jan. 29, 2023
Common stock:
Shares at beginning of period (in shares)	1,794	1,792
Shares issued under employee stock plans (in shares)	1	1
Shares at end of period (in shares)	1,795	1,793
Treasury stock:
Shares at beginning of period (in shares)	(778)	(757)
Repurchases of common stock (in shares)	(10)	(7)
Shares at end of period (in shares)	(788)	(764)
Shares outstanding at end of period (in shares)	1,007	1,029	1,016
Cash dividends per share (in usd per share)	$ 2.09	$ 1.90

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Billions	Apr. 30, 2023	Aug. 31, 2022	May 31, 2021
2022 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase amount		$ 15
Remaining authorized repurchase amount	$ 9.5
2021 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase amount			$ 20

STOCKHOLDERS' EQUITY - Repurcha

STOCKHOLDERS' EQUITY - Repurchases of Common Stock (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Apr. 30, 2023	May 01, 2022
Equity [Abstract]
Total number of shares repurchased	10	7
Total cost of shares repurchased (1)	$ 3,028	$ 2,250

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair value measurements recurring - Fair Value (Level 2) - USD ($) $ in Millions	Apr. 30, 2023	Jan. 29, 2023
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items]
Derivative agreements – assets	$ 0	$ 0
Derivative agreements – liabilities	(740)	(778)
Total	$ (740)	$ (778)

FAIR VALUE MEASUREMENTS - Ass_2

FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Millions	Apr. 30, 2023	Jan. 29, 2023
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 38,954	$ 39,908
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	$ 36,992	$ 38,537

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
	Apr. 30, 2023	May 01, 2022
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Basic weighted average common shares (in shares)	1,010	1,030
Effect of potentially dilutive securities (in shares)	3	4
Diluted weighted average common shares (in shares)	1,013	1,034
Anti-dilutive securities excluded from diluted weighted average common shares (in shares)	1	1