The Home Depot, Inc. (HD) 10-Q 20 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Oct. 29, 2023	Nov. 14, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 29, 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		995,261,844
Entity Central Index Key	0000354950
Current Fiscal Year End Date	--01-28
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Oct. 29, 2023	Jan. 29, 2023
Current assets:
Cash and cash equivalents	$ 2,058	$ 2,757
Receivables, net	3,932	3,317
Merchandise inventories	22,805	24,886
Other current assets	1,887	1,511
Total current assets	30,682	32,471
Net property and equipment	25,735	25,631
Operating lease right-of-use assets	7,071	6,941
Goodwill	7,937	7,444
Other assets	4,152	3,958
Total assets	75,577	76,445
Current liabilities:
Accounts payable	11,478	11,443
Accrued salaries and related expenses	2,034	1,991
Sales taxes payable	590	528
Deferred revenue	2,784	3,064
Income taxes payable	304	50
Current installments of long-term debt	1,362	1,231
Current operating lease liabilities	1,026	945
Other accrued expenses	3,994	3,858
Total current liabilities	23,572	23,110
Long-term debt, excluding current installments	40,567	41,962
Long-term operating lease liabilities	6,300	6,226
Deferred income taxes	753	1,019
Other long-term liabilities	2,955	2,566
Total liabilities	74,147	74,883
Contingencies (Note 8)
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,796 shares at October 29, 2023 and 1,794 shares at January 29, 2023; outstanding: 996 shares at October 29, 2023 and 1,016 shares at January 29, 2023	90	90
Paid-in capital	12,927	12,592
Retained earnings	82,934	76,896
Accumulated other comprehensive loss	(662)	(718)
Treasury stock, at cost, 800 shares at October 29, 2023 and 778 shares at January 29, 2023	(93,859)	(87,298)
Total stockholders’ equity	1,430	1,562
Total liabilities and stockholders’ equity	$ 75,577	$ 76,445

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Oct. 29, 2023	Jan. 29, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.05	$ 0.05
Common stock, authorized (in shares)	10,000	10,000
Common stock, issued (in shares)	1,796	1,794
Common stock, outstanding (in shares)	996	1,016
Treasury stock (in shares)	800	778

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022	Oct. 29, 2023	Oct. 30, 2022
Income Statement [Abstract]
Net sales	$ 37,710	$ 38,872	$ 117,883	$ 121,572
Cost of sales	24,972	25,648	78,431	80,720
Gross profit	12,738	13,224	39,452	40,852
Operating expenses:
Selling, general and administrative	6,649	6,468	19,919	19,735
Depreciation and amortization	683	608	1,987	1,830
Total operating expenses	7,332	7,076	21,906	21,565
Operating income	5,406	6,148	17,546	19,287
Interest and other (income) expense:
Interest income and other, net	(49)	(7)	(123)	(12)
Interest expense	487	413	1,430	1,166
Interest and other, net	438	406	1,307	1,154
Earnings before provision for income taxes	4,968	5,742	16,239	18,133
Provision for income taxes	1,158	1,403	3,897	4,390
Net earnings	$ 3,810	$ 4,339	$ 12,342	$ 13,743
Basic weighted average common shares (in shares)	996	1,020	1,002	1,024
Basic earnings per share (in dollars per share)	$ 3.83	$ 4.25	$ 12.32	$ 13.42
Diluted weighted average common shares (in shares)	999	1,023	1,005	1,028
Diluted earnings per share (in dollars per share)	$ 3.81	$ 4.24	$ 12.28	$ 13.37

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022	Oct. 29, 2023	Oct. 30, 2022
Statement of Comprehensive Income [Abstract]
Net earnings	$ 3,810	$ 4,339	$ 12,342	$ 13,743
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(196)	(187)	51	(158)
Cash flow hedges	1	3	5	6
Total other comprehensive income (loss), net of tax	(195)	(184)	56	(152)
Comprehensive income	$ 3,615	$ 4,155	$ 12,398	$ 13,591

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	(21)
Stock-based compensation expense			274
Net earnings	$ 13,743			13,743
Cash dividends				(5,856)
Foreign currency translation adjustments, net of tax	(158)				(158)
Cash flow hedges, net of tax	6				6
Repurchases of common stock	(4,994)					(4,994)
Balance at end of period at Oct. 30, 2022	1,298	90	12,385	75,467	(856)	(85,788)
Balance at beginning of period at Jul. 31, 2022		90	12,309	73,074	(672)	(84,564)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans, net		0	(2)
Stock-based compensation expense			78
Net earnings	4,339			4,339
Cash dividends				(1,946)
Foreign currency translation adjustments, net of tax	(187)				(187)
Cash flow hedges, net of tax	3				3
Repurchases of common stock	(1,224)					(1,224)
Balance at end of period at Oct. 30, 2022	1,298	90	12,385	75,467	(856)	(85,788)
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	46
Stock-based compensation expense			289
Net earnings	12,342			12,342
Cash dividends				(6,304)
Foreign currency translation adjustments, net of tax	51				51
Cash flow hedges, net of tax	5				5
Repurchases of common stock	(6,561)					(6,561)
Balance at end of period at Oct. 29, 2023	1,430	90	12,927	82,934	(662)	(93,859)
Balance at beginning of period at Jul. 30, 2023		90	12,842	81,213	(467)	(92,343)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans, net		0	11
Stock-based compensation expense			74
Net earnings	3,810			3,810
Cash dividends				(2,089)
Foreign currency translation adjustments, net of tax	(196)				(196)
Cash flow hedges, net of tax	1				1
Repurchases of common stock	(1,516)					(1,516)
Balance at end of period at Oct. 29, 2023	$ 1,430	$ 90	$ 12,927	$ 82,934	$ (662)	$ (93,859)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022
Cash Flows from Operating Activities:
Net earnings	$ 12,342	$ 13,743
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization	2,415	2,216
Stock-based compensation expense	300	286
Changes in receivables, net	(538)	(312)
Changes in merchandise inventories	2,131	(3,748)
Changes in other current assets	(365)	(568)
Changes in accounts payable and accrued expenses	187	(1,568)
Changes in deferred revenue	(276)	(413)
Changes in income taxes payable	252	30
Changes in deferred income taxes	(310)	129
Other operating activities	301	226
Net cash provided by operating activities	16,439	10,021
Cash Flows from Investing Activities:
Capital expenditures	(2,368)	(2,216)
Payments for businesses acquired, net	(795)	0
Other investing activities	15	(29)
Net cash used in investing activities	(3,148)	(2,245)
Cash Flows from Financing Activities:
Repayments of short-term debt, net	0	(1,035)
Proceeds from long-term debt, net of discounts	0	6,942
Repayments of long-term debt	(1,200)	(2,423)
Repurchases of common stock	(6,465)	(5,136)
Proceeds from sales of common stock	192	146
Cash dividends	(6,304)	(5,856)
Other financing activities	(146)	(185)
Net cash used in financing activities	(13,923)	(7,547)
Change in cash and cash equivalents	(632)	229
Effect of exchange rate changes on cash and cash equivalents	(67)	(110)
Cash and cash equivalents at beginning of period	2,757	2,343
Cash and cash equivalents at end of period	2,058	2,462
Supplemental Disclosures:
Cash paid for interest, net of interest capitalized	1,504	1,160
Cash paid for income taxes	$ 3,817	$ 4,173

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Oct. 29, 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’ decisions 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 $309 million at October 29, 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. ASU No. 2020-04. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate discontinued as a result of reference rate reform. ASU No. 2020-04 is effective as of March 12, 2020 and may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. This guidance was subsequently amended by ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which was effective upon issuance in December 2022 and extended the temporary relief provided by Topic 848 through December 31, 2024. During the second quarter of fiscal 2023, we amended our existing fixed-to-variable interest rate swap agreements, which were designated as fair value hedges, to transition the variable component of such agreements from LIBOR to the Secured Overnight Financing Rate (“SOFR”). Concurrent with these amendments, we elected certain of the optional expedients provided in Topic 848, which allow us to maintain our designation of fair value hedge accounting and application of the shortcut method for these agreements. The adoption of this guidance did not have a material impact on our consolidated financial condition, results of operations, or cash flows. Recently Issued Accounting Pronouncements Recent accounting pronouncements pending adoption 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	9 Months Ended
	Oct. 29, 2023
Revenue from Contract with Customer [Abstract]
Net Sales	NET SALES The following table presents net sales, classified by geography: Three Months Ended Nine Months Ended in millions October 29, October 30, October 29, October 30, Net sales – in the U.S. $ 34,544 $ 35,784 $ 108,242 $ 111,834 Net sales – outside the U.S. 3,166 3,088 9,641 9,738 Net sales $ 37,710 $ 38,872 $ 117,883 $ 121,572 The following table presents net sales by products and services: Three Months Ended Nine Months Ended in millions October 29, October 30, October 29, October 30, Net sales – products $ 36,156 $ 37,448 $ 113,405 $ 117,261 Net sales – services 1,554 1,424 4,478 4,311 Net sales $ 37,710 $ 38,872 $ 117,883 $ 121,572 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 Nine Months Ended in millions October 29, October 30, October 29, October 30, Building Materials $ 14,744 $ 15,343 $ 44,214 $ 46,095 Décor 12,653 13,070 38,315 40,040 Hardlines 10,313 10,459 35,354 35,437 Net sales $ 37,710 $ 38,872 $ 117,883 $ 121,572 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 29, 2023 and January 29, 2023, deferred revenue for products and services was $1.8 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 October 29, 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 and nine months ended October 29, 2023 and October 30, 2022.

PROPERTY AND LEASES

PROPERTY AND LEASES	9 Months Ended
	Oct. 29, 2023
Leases [Abstract]
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment included accumulated depreciation and finance lease amortization of $28.1 billion as of October 29, 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 October 29, January 29, Assets: Operating lease assets Operating lease right-of-use assets $ 7,071 $ 6,941 Finance lease assets (1) Net property and equipment 2,860 2,899 Total lease assets $ 9,931 $ 9,840 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 1,026 $ 945 Finance lease liabilities Current installments of long-term debt 262 231 Long-term: Operating lease liabilities Long-term operating lease liabilities 6,300 6,226 Finance lease liabilities Long-term debt, excluding current installments 3,032 3,054 Total lease liabilities $ 10,620 $ 10,456 ————— (1) Finance lease assets are recorded net of accumulated amortization of $1.2 billion as of both October 29, 2023 and January 29, 2023. The following table presents supplemental non-cash information related to leases: Nine Months Ended in millions October 29, October 30, Lease assets obtained in exchange for new operating lease liabilities $ 791 $ 1,308 Lease assets obtained in exchange for new finance lease liabilities 261 234

DEBT AND DERIVATIVE INSTRUMENTS

DEBT AND DERIVATIVE INSTRUMENTS	9 Months Ended
	Oct. 29, 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 2024. In July 2023, we completed the renewal of our 364-day $1.5 billion credit facility, extending the maturity from July 2023 to July 2024. All of our short-term borrowings in the first nine months of fiscal 2023 were under our commercial paper program, and the maximum amount outstanding at any time was $1.5 billion. At both October 29, 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 nine 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 October 29, 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 October 29, 2023 and January 29, 2023, the fair values of these agreements totaled $1.1 billion and $778 million, respectively, all of which are recognized within other long-term liabilities on the consolidated balance sheets. All of our interest rate swap agreements are designated as fair value hedges and 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. During the second quarter of fiscal 2023, we amended all of our interest rate swap agreements to replace LIBOR with SOFR and concurrently adopted certain expedients provided in Topic 848. These amendments did not result in any change to our application of hedge accounting or have a material impact to our consolidated financial statements. See Note 1 for further discussion. There were no material changes to any 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 $926 million and $634 million as of October 29, 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 October 29, 2023 or January 29, 2023.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Oct. 29, 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 Nine Months Ended October 29, October 30, October 29, October 30, Common stock: Shares at beginning of period 1,796 1,793 1,794 1,792 Shares issued under employee stock plans, net — — 2 1 Shares at end of period 1,796 1,793 1,796 1,793 Treasury stock: Shares at beginning of period (795) (769) (778) (757) Repurchases of common stock (5) (4) (22) (16) Shares at end of period (800) (773) (800) (773) Shares outstanding at end of period 996 1,020 996 1,020 Cash dividends per share $ 2.09 $ 1.90 $ 6.27 $ 5.70 Share Repurchases In August 2023, our Board of Directors approved a $15.0 billion share repurchase authorization that replaced the previous authorization of $15.0 billion, which was approved in August 2022. This new authorization does not have a prescribed expiration date. As of October 29, 2023, approximately $13.8 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 Nine Months Ended October 29, October 30, October 29, October 30, Total number of shares repurchased 5 4 22 16 Total cost of shares repurchased (1) $ 1,516 $ 1,224 $ 6,561 $ 4,994 ————— (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	9 Months Ended
	Oct. 29, 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: October 29, 2023 January 29, 2023 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ — $ — Derivative agreements – liabilities (1,073) (778) Total $ (1,073) $ (778) The fair values of our derivative instruments are determined using an income approach and Level 2 inputs, which primarily include the respective interest rate 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. During the third quarter of fiscal 2023, we completed our annual assessment of the recoverability of goodwill for our U.S., Canada, and Mexico reporting units, using a quantitative approach. The quantitative test for goodwill impairment was performed by determining the fair value of the reporting units using a combination of discounted cash flow and market-based approaches. The results of our quantitative analysis indicated that the fair value of each of the reporting units substantially exceeded its respective carrying value, including goodwill. Additionally, during the third quarter of fiscal 2023, 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 29, 2023 or October 30, 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: October 29, 2023 January 29, 2023 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 33,135 $ 38,635 $ 38,537 $ 39,908

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	9 Months Ended
	Oct. 29, 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 as well as the number of anti-dilutive securities excluded from diluted weighted average common shares: in millions Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, Basic weighted average common shares 996 1,020 1,002 1,024 Effect of potentially dilutive securities (1) 3 3 3 4 Diluted weighted average common shares 999 1,023 1,005 1,028 Anti-dilutive securities excluded from diluted weighted average common shares 1 1 1 1 ————— (1) Represents the dilutive impact of stock-based awards.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Oct. 29, 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.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022	Oct. 29, 2023	Oct. 30, 2022
Pay vs Performance Disclosure
Net earnings	$ 3,810	$ 4,339	$ 12,342	$ 13,743

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Oct. 29, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Oct. 29, 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 and Recently Issued 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’ decisions 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 $309 million at October 29, 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. ASU No. 2020-04. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate discontinued as a result of reference rate reform. ASU No. 2020-04 is effective as of March 12, 2020 and may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. This guidance was subsequently amended by ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which was effective upon issuance in December 2022 and extended the temporary relief provided by Topic 848 through December 31, 2024. During the second quarter of fiscal 2023, we amended our existing fixed-to-variable interest rate swap agreements, which were designated as fair value hedges, to transition the variable component of such agreements from LIBOR to the Secured Overnight Financing Rate (“SOFR”). Concurrent with these amendments, we elected certain of the optional expedients provided in Topic 848, which allow us to maintain our designation of fair value hedge accounting and application of the shortcut method for these agreements. The adoption of this guidance did not have a material impact on our consolidated financial condition, results of operations, or cash flows. Recently Issued Accounting Pronouncements Recent accounting pronouncements pending adoption 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)	9 Months Ended
	Oct. 29, 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 Nine Months Ended in millions October 29, October 30, October 29, October 30, Net sales – in the U.S. $ 34,544 $ 35,784 $ 108,242 $ 111,834 Net sales – outside the U.S. 3,166 3,088 9,641 9,738 Net sales $ 37,710 $ 38,872 $ 117,883 $ 121,572
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 29, October 30, October 29, October 30, Net sales – products $ 36,156 $ 37,448 $ 113,405 $ 117,261 Net sales – services 1,554 1,424 4,478 4,311 Net sales $ 37,710 $ 38,872 $ 117,883 $ 121,572
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 Nine Months Ended in millions October 29, October 30, October 29, October 30, Building Materials $ 14,744 $ 15,343 $ 44,214 $ 46,095 Décor 12,653 13,070 38,315 40,040 Hardlines 10,313 10,459 35,354 35,437 Net sales $ 37,710 $ 38,872 $ 117,883 $ 121,572

PROPERTY AND LEASES (Tables)

PROPERTY AND LEASES (Tables)	9 Months Ended
	Oct. 29, 2023
Leases [Abstract]
Summary 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 October 29, January 29, Assets: Operating lease assets Operating lease right-of-use assets $ 7,071 $ 6,941 Finance lease assets (1) Net property and equipment 2,860 2,899 Total lease assets $ 9,931 $ 9,840 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 1,026 $ 945 Finance lease liabilities Current installments of long-term debt 262 231 Long-term: Operating lease liabilities Long-term operating lease liabilities 6,300 6,226 Finance lease liabilities Long-term debt, excluding current installments 3,032 3,054 Total lease liabilities $ 10,620 $ 10,456 —————
Summary of Supplemental Non-Cash Information Related to Leases	The following table presents supplemental non-cash information related to leases: Nine Months Ended in millions October 29, October 30, Lease assets obtained in exchange for new operating lease liabilities $ 791 $ 1,308 Lease assets obtained in exchange for new finance lease liabilities 261 234

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Oct. 29, 2023
Equity [Abstract]
Summary of Reconciliation of the Number of Shares of our 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 Nine Months Ended October 29, October 30, October 29, October 30, Common stock: Shares at beginning of period 1,796 1,793 1,794 1,792 Shares issued under employee stock plans, net — — 2 1 Shares at end of period 1,796 1,793 1,796 1,793 Treasury stock: Shares at beginning of period (795) (769) (778) (757) Repurchases of common stock (5) (4) (22) (16) Shares at end of period (800) (773) (800) (773) Shares outstanding at end of period 996 1,020 996 1,020 Cash dividends per share $ 2.09 $ 1.90 $ 6.27 $ 5.70
Summary 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 Nine Months Ended October 29, October 30, October 29, October 30, Total number of shares repurchased 5 4 22 16 Total cost of shares repurchased (1) $ 1,516 $ 1,224 $ 6,561 $ 4,994 ————— (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)	9 Months Ended
	Oct. 29, 2023
Fair Value Disclosures [Abstract]
Summary 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: October 29, 2023 January 29, 2023 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ — $ — Derivative agreements – liabilities (1,073) (778) Total $ (1,073) $ (778)
Summary 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: October 29, 2023 January 29, 2023 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 33,135 $ 38,635 $ 38,537 $ 39,908

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	9 Months Ended
	Oct. 29, 2023
Earnings Per Share [Abstract]
Summary of Weighted Average Number of Shares	The following table presents the reconciliation of our basic to diluted weighted average common shares as well as the number of anti-dilutive securities excluded from diluted weighted average common shares: in millions Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, Basic weighted average common shares 996 1,020 1,002 1,024 Effect of potentially dilutive securities (1) 3 3 3 4 Diluted weighted average common shares 999 1,023 1,005 1,028 Anti-dilutive securities excluded from diluted weighted average common shares 1 1 1 1 ————— (1) Represents the dilutive impact of stock-based awards.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	9 Months Ended
	Oct. 29, 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 | $	$ 309	$ 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 - Summary of Net Sale

NET SALES - Summary of Net Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022	Oct. 29, 2023	Oct. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 37,710	$ 38,872	$ 117,883	$ 121,572
Products
Disaggregation of Revenue [Line Items]
Net sales	36,156	37,448	113,405	117,261
Services
Disaggregation of Revenue [Line Items]
Net sales	1,554	1,424	4,478	4,311
Building Materials
Disaggregation of Revenue [Line Items]
Net sales	14,744	15,343	44,214	46,095
Décor
Disaggregation of Revenue [Line Items]
Net sales	12,653	13,070	38,315	40,040
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	10,313	10,459	35,354	35,437
In the U.S.
Disaggregation of Revenue [Line Items]
Net sales	34,544	35,784	108,242	111,834
Outside the U.S.
Disaggregation of Revenue [Line Items]
Net sales	$ 3,166	$ 3,088	$ 9,641	$ 9,738

NET SALES - Narrative (Details)

NET SALES - Narrative (Details) - USD ($) $ in Billions	9 Months Ended
	Oct. 29, 2023	Jan. 29, 2023
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 1.8	$ 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	Oct. 29, 2023	Jan. 29, 2023
Leases [Abstract]
Accumulated depreciation and amortization	$ 28.1	$ 26.6

PROPERTY AND LEASES - Summary o

PROPERTY AND LEASES - Summary of Assets and Liabilities Related to Operating and Finance Leases (Details) - USD ($) $ in Millions	Oct. 29, 2023	Jan. 29, 2023
Assets
Operating lease assets	$ 7,071	$ 6,941
Finance lease assets	2,860	2,899
Total lease assets	9,931	9,840
Current:
Operating lease liabilities	1,026	945
Finance lease liabilities	262	231
Long-term:
Operating lease liabilities	6,300	6,226
Finance lease liabilities	3,032	3,054
Total lease liabilities	10,620	10,456
Finance lease asset accumulated amortization	$ 1,200	$ 1,200

PROPERTY AND LEASES - Summary_2

PROPERTY AND LEASES - Summary of Supplemental Non-Cash Information Related to Leases (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022
Leases [Abstract]
Lease assets obtained in exchange for new operating lease liabilities	$ 791	$ 1,308
Lease assets obtained in exchange for new finance lease liabilities	$ 261	$ 234

DEBT AND DERIVATIVE INSTRUMEN_2

DEBT AND DERIVATIVE INSTRUMENTS - Short-term Debt (Details) - USD ($) $ in Billions	1 Months Ended		9 Months Ended
	Jul. 30, 2023	Apr. 30, 2023	Oct. 29, 2023	Jan. 29, 2023
Debt Instrument [Line Items]
Short-term debt			$ 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%
Commercial Paper
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility			5
Maximum amount outstanding during period			1.5
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility			5
Revolving Credit Facility | 5-year Back-up Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility			$ 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		364 days

DEBT AND DERIVATIVE INSTRUMEN_3

DEBT AND DERIVATIVE INSTRUMENTS - Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions	Oct. 29, 2023	Jan. 29, 2023
Derivative [Line Items]
Cash collateral received	$ 926	$ 634
Interest Rate Swap | Fair Value Hedging
Derivative [Line Items]
Notional amount	5,400	5,400
Fair value agreements	$ 1,100	$ 778

STOCKHOLDERS' EQUITY - Summary

STOCKHOLDERS' EQUITY - Summary of Reconciliation of the Number of Shares of our Common Stock Outstanding and Cash Dividends Per Share (Details) - $ / shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022	Oct. 29, 2023	Oct. 30, 2022	Jan. 29, 2023
Common stock:
Shares at beginning of period (in shares)	1,796	1,793	1,794	1,792
Shares issued under employee stock plans, net (in shares)	0	0	2	1
Shares at end of period (in shares)	1,796	1,793	1,796	1,793
Treasury stock:
Shares at beginning of period (in shares)	(795)	(769)	(778)	(757)
Repurchases of common stock (in shares)	(5)	(4)	(22)	(16)
Shares at end of period (in shares)	(800)	(773)	(800)	(773)
Shares outstanding at end of period (in shares)	996	1,020	996	1,020	1,016
Cash dividends per share (in dollars per share)	$ 2.09	$ 1.90	$ 6.27	$ 5.70

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Billions	Oct. 29, 2023	Aug. 31, 2023	Aug. 31, 2022
2023 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase amount		$ 15
Remaining authorized repurchase amount	$ 13.8
2022 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase amount			$ 15

STOCKHOLDERS' EQUITY - Summar_2

STOCKHOLDERS' EQUITY - Summary of Repurchases of Common Stock (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022	Oct. 29, 2023	Oct. 30, 2022
Equity [Abstract]
Total number of shares repurchased	5	4	22	16
Total cost of shares repurchased	$ 1,516	$ 1,224	$ 6,561	$ 4,994

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value Measurements Recurring - Fair Value (Level 2) - USD ($) $ in Millions	Oct. 29, 2023	Jan. 29, 2023
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items]
Derivative agreements – assets	$ 0	$ 0
Derivative agreements – liabilities	(1,073)	(778)
Total	$ (1,073)	$ (778)

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details)	3 Months Ended
	Oct. 29, 2023 USD ($)
Fair Value Disclosures [Abstract]
Impairment of intangible assets	$ 0

FAIR VALUE MEASUREMENTS - Sum_2

FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Millions	Oct. 29, 2023	Jan. 29, 2023
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 38,635	$ 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	$ 33,135	$ 38,537

WEIGHTED AVERAGE COMMON SHARE_2

WEIGHTED AVERAGE COMMON SHARES (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2023	Oct. 30, 2022	Oct. 29, 2023	Oct. 30, 2022
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Basic weighted average common shares (in shares)	996	1,020	1,002	1,024
Effect of potentially dilutive securities (in shares)	3	3	3	4
Diluted weighted average common shares (in shares)	999	1,023	1,005	1,028
Anti-dilutive securities excluded from diluted weighted average common shares (in shares)	1	1	1	1