The Home Depot, Inc. (HD) 10-Q 20 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 28, 2024	May 14, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 28, 2024
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		991,614,186
Entity Central Index Key	0000354950
Current Fiscal Year End Date	--02-02
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Apr. 28, 2024	Jan. 28, 2024
Current assets:
Cash and cash equivalents	$ 4,264	$ 3,760
Receivables, net	4,105	3,328
Merchandise inventories	22,416	20,976
Other current assets	1,837	1,711
Total current assets	32,622	29,775
Net property and equipment	25,997	26,154
Operating lease right-of-use assets	7,913	7,884
Goodwill	8,464	8,455
Other assets	4,234	4,262
Total assets	79,230	76,530
Current liabilities:
Short-term debt	8	0
Accounts payable	12,563	10,037
Accrued salaries and related expenses	2,005	2,096
Sales taxes payable	676	449
Deferred revenue	2,841	2,762
Income taxes payable	637	28
Current installments of long-term debt	763	1,368
Current operating lease liabilities	1,073	1,050
Other accrued expenses	3,793	4,225
Total current liabilities	24,359	22,015
Long-term debt, excluding current installments	42,060	42,743
Long-term operating lease liabilities	7,107	7,082
Deferred income taxes	946	863
Other long-term liabilities	2,938	2,783
Total liabilities	77,410	75,486
Contingencies (Note 8)
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,798 shares at April 28, 2024 and 1,796 shares at January 28, 2024; outstanding: 992 shares at April 28, 2024 and 992 shares at January 28, 2024	90	90
Paid-in capital	13,153	13,147
Retained earnings	85,027	83,656
Accumulated other comprehensive loss	(478)	(477)
Treasury stock, at cost, 806 shares at April 28, 2024 and 804 shares at January 28, 2024	(95,972)	(95,372)
Total stockholders’ equity	1,820	1,044
Total liabilities and stockholders’ equity	$ 79,230	$ 76,530

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Apr. 28, 2024	Jan. 28, 2024
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)	1,798	1,796
Common stock, outstanding (in shares)	992	992
Treasury stock (in shares)	806	804

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Income Statement [Abstract]
Net sales	$ 36,418	$ 37,257
Cost of sales	23,985	24,700
Gross profit	12,433	12,557
Operating expenses:
Selling, general and administrative	6,667	6,355
Depreciation and amortization	687	651
Total operating expenses	7,354	7,006
Operating income	5,079	5,551
Interest and other (income) expense:
Interest income and other, net	(57)	(33)
Interest expense	485	474
Interest and other, net	428	441
Earnings before provision for income taxes	4,651	5,110
Provision for income taxes	1,051	1,237
Net earnings	$ 3,600	$ 3,873
Basic weighted average common shares (in shares)	989	1,010
Basic earnings per share (in dollars per share)	$ 3.64	$ 3.83
Diluted weighted average common shares (in shares)	992	1,013
Diluted earnings per share (in dollars per share)	$ 3.63	$ 3.82

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Statement of Comprehensive Income [Abstract]
Net earnings	$ 3,600	$ 3,873
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(10)	79
Cash flow hedges	9	2
Total other comprehensive income (loss), net of tax	(1)	81
Comprehensive income	$ 3,599	$ 3,954

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. 29, 2023		$ 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)
Balance at beginning of period at Jan. 28, 2024	1,044	90	13,147	83,656	(477)	(95,372)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued under employee stock plans, net		0	(104)
Stock-based compensation expense			110
Net earnings	3,600			3,600
Cash dividends				(2,229)
Foreign currency translation adjustments, net of tax	(10)				(10)
Cash flow hedges, net of tax	9				9
Repurchases of common stock	(600)					(600)
Balance at end of period at Apr. 28, 2024	$ 1,820	$ 90	$ 13,153	$ 85,027	$ (478)	$ (95,972)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Cash Flows from Operating Activities:
Net earnings	$ 3,600	$ 3,873
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization	837	793
Stock-based compensation expense	124	124
Changes in receivables, net	(795)	(893)
Changes in merchandise inventories	(1,452)	(457)
Changes in other current assets	(113)	(60)
Changes in accounts payable and accrued expenses	2,511	1,158
Changes in deferred revenue	81	57
Changes in income taxes payable	610	1,004
Changes in deferred income taxes	83	(59)
Other operating activities	11	74
Net cash provided by operating activities	5,497	5,614
Cash Flows from Investing Activities:
Capital expenditures	(847)	(905)
Other investing activities	17	2
Net cash used in investing activities	(830)	(903)
Cash Flows from Financing Activities:
Proceeds from short-term debt, net	8	0
Repayments of long-term debt	(1,172)	(1,063)
Repurchases of common stock	(649)	(2,887)
Proceeds from sales of common stock	62	15
Cash dividends	(2,229)	(2,118)
Other financing activities	(166)	(135)
Net cash used in financing activities	(4,146)	(6,188)
Change in cash and cash equivalents	521	(1,477)
Effect of exchange rate changes on cash and cash equivalents	(17)	(20)
Cash and cash equivalents at beginning of period	3,760	2,757
Cash and cash equivalents at end of period	4,264	1,260
Supplemental Disclosures:
Cash paid for interest, net of interest capitalized	621	596
Cash paid for income taxes	$ 249	$ 185

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Apr. 28, 2024
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. 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 2023 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2023 Form 10-K. Supplier Finance Programs We have a supplier finance program whereby 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. The payment terms we negotiate with our suppliers are consistent, irrespective of whether a supplier participates in the program, and we are not a party to the agreements between the participating financial institutions and the suppliers in connection with the program. We do not reimburse suppliers for any costs they incur for participation in the program, and we have not pledged any assets as security or provided any guarantees as part of the program. Our outstanding payment obligations under our supplier finance program were $404 million at April 28, 2024 and $514 million at January 28, 2024 and are recorded within accounts payable on the consolidated balance sheets. Recent Accounting Pronouncements We did not adopt any new accounting pronouncements during the three months ended April 28, 2024 that had a material impact on our consolidated financial condition, results of operations or cash flows. There were no significant changes in recently issued accounting pronouncements pending adoption from those disclosed in the 2023 Form 10-K, and those not discussed in the 2023 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.

SEGMENT REPORTING AND NET SALES

SEGMENT REPORTING AND NET SALES	3 Months Ended
	Apr. 28, 2024
Segment Reporting [Abstract]
SEGMENT REPORTING AND NET SALES	SEGMENT REPORTING AND NET SALES We currently conduct our retail operations in the U.S., Canada, and Mexico, each of which represents one of our three operating segments. Our operating segments reflect the way in which internally-reported financial information is regularly reviewed by the chief operating decision maker (“CODM”), who is our President and Chief Executive Officer, to analyze performance, make decisions and allocate resources. For disclosure purposes, we aggregate these three operating segments into one reportable segment due to the similar nature of their operations and economic characteristics. The following table presents net sales, classified by geography: Three Months Ended in millions April 28, April 30, Net sales – in the U.S. $ 33,569 $ 34,507 Net sales – outside the U.S. 2,849 2,750 Net sales $ 36,418 $ 37,257 The following table presents net sales by products and services: Three Months Ended in millions April 28, April 30, Net sales – products $ 35,078 $ 35,888 Net sales – services 1,340 1,369 Net sales $ 36,418 $ 37,257 During the first quarter of fiscal 2024, due to growth across our business in recent years and our continued focus on the customer experience, we made certain changes to our merchandising department structure that realign certain merchandising departments across our three major product lines. The changes primarily include the following, which reflect how our CODM is receiving information: • Under the Building Materials product line, we divided our Electrical/Lighting department into two separate departments, and we moved the Lighting department to our Décor product line. • Under the Décor product line, we separated our Kitchen & Bath department into separate departments and moved blinds from our Décor/Storage department to a new Kitchen & Blinds department. We then consolidated all storage and organization products within a new Storage & Organization department and moved it to the Hardlines product line. • Under the Hardlines product line, we combined all power tools and products into a newly formed Power department, and we moved certain non-power products from our former Tools department to our Hardware department. These changes had no impact on our consolidated net sales and are incorporated into the tables below. The following table presents our major product lines and the related merchandising departments (and related services): Major Product Line Merchandising Departments Building Materials Building Materials, Electrical, Lumber, Millwork, and Plumbing Décor Appliances, Bath, Flooring, Kitchen & Blinds, Lighting, and Paint Hardlines Hardware, Indoor Garden, Outdoor Garden, Power, and Storage & Organization The following table presents net sales by major product line (and related services): Three Months Ended in millions April 28, April 30, Building Materials $ 12,614 $ 12,993 Décor 12,344 12,704 Hardlines 11,460 11,560 Net sales $ 36,418 $ 37,257 ————— Note: As discussed above, we made changes impacting our product lines and certain merchandising departments in the first quarter of fiscal 2024. As a result, prior-year amounts have been reclassified to conform with the current-year presentation. These changes had no impact on consolidated net sales. For further information regarding the impact of these changes to the sales information for our major product lines and merchandising departments presented in our 2023 Form 10-K, refer to Part II, Item 5. Other Information . Deferred Revenue For products and services sold in stores or online, payment is typically due at the point of sale. When we receive payment 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 28, 2024 and January 28, 2024, deferred revenue for products and services was $1.8 billion and $1.7 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 28, 2024 and January 28, 2024, 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, is recognized in net sales and was immaterial during the three months ended April 28, 2024 and April 30, 2023.

PROPERTY AND LEASES

PROPERTY AND LEASES	3 Months Ended
	Apr. 28, 2024
Leases [Abstract]
Property and Leases	PROPERTY AND LEASES Net Property and Equipment Net property and equipment included accumulated depreciation and finance lease amortization of $27.7 billion as of April 28, 2024 and $27.1 billion as of January 28, 2024. Leases The following table presents the consolidated balance sheet classification related to operating and finance leases: in millions Consolidated Balance Sheet Classification April 28, January 28, Assets: Operating lease assets Operating lease right-of-use assets $ 7,913 $ 7,884 Finance lease assets (1) Net property and equipment 2,777 2,840 Total lease assets $ 10,690 $ 10,724 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 1,073 $ 1,050 Finance lease liabilities Current installments of long-term debt 264 268 Long-term: Operating lease liabilities Long-term operating lease liabilities 7,107 7,082 Finance lease liabilities Long-term debt, excluding current installments 2,946 3,000 Total lease liabilities $ 11,390 $ 11,400 ————— (1) Finance lease assets are recorded net of accumulated amortization of $1.3 billion as of April 28, 2024 and $1.2 billion as of January 28, 2024. The following table presents supplemental non-cash information related to leases: Three Months Ended in millions April 28, April 30, Lease assets obtained in exchange for new operating lease liabilities $ 319 $ 254 Lease assets obtained in exchange for new finance lease liabilities 28 114

DEBT AND DERIVATIVE INSTRUMENTS

DEBT AND DERIVATIVE INSTRUMENTS	3 Months Ended
	Apr. 28, 2024
Debt Disclosure [Abstract]
Debt and Derivative Instruments	DEBT AND DERIVATIVE INSTRUMENTS Short-Term Debt As of April 28, 2024, we had a commercial paper program that allowed for borrowings up to $5.0 billion. In connection with our program, we had back-up credit facilities with a consortium of banks for borrowings up to $5.0 billion, which consisted 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. All of our short-term borrowings in the first three months of fiscal 2024 were under this commercial paper program, and the maximum amount outstanding at any time was $117 million. At April 28, 2024, we had $8 million of outstanding borrowings under our commercial paper program and no outstanding borrowings under our back-up credit facilities, and at January 28, 2024, there were no outstanding borrowings under our commercial paper program or back-up credit facilities. In May 2024, we increased our commercial paper program from $5.0 billion to $19.5 billion in connection with the anticipated financing of the pending acquisition of SRS (see Note 9 ). In May 2024, in connection with the increase in the commercial paper program, we also entered into additional back-up credit facilities that consist of a 364-day $3.5 billion credit facility scheduled to expire in May 2025, a three-year $1.0 billion credit facility scheduled to expire in May 2027, and a 364-day $10.0 billion credit facility scheduled to expire in May 2025. The $10.0 billion credit facility also provides that the commitments and any borrowings under this facility will be reduced by the amount of net cash proceeds we receive from any future debt issuance. In the aggregate, our commercial paper program now allows for borrowings up to $19.5 billion and is supported by $19.5 billion of back-up credit facilities. Long-Term Debt We did not have any new issuances of senior notes during the first three months of fiscal 2024. In February 2024, we repaid our $1.1 billion 3.75% 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 28, 2024 and January 28, 2024. 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 28, 2024 and January 28, 2024, the fair values of these agreements totaled $995 million and $858 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. There was no new material hedging activity or material changes to any other hedging arrangements disclosed in our 2023 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 $844 million and $714 million as of April 28, 2024 and January 28, 2024, respectively, which was recorded in other current assets on the consolidated balance sheets. We did not hold any cash collateral as of April 28, 2024 or January 28, 2024.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Apr. 28, 2024
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 28, April 30, Common stock: Shares at beginning of period 1,796 1,794 Shares issued under employee stock plans, net 2 1 Shares at end of period 1,798 1,795 Treasury stock: Shares at beginning of period (804) (778) Repurchases of common stock (2) (10) Shares at end of period (806) (788) Shares outstanding at end of period 992 1,007 Cash dividends per share $ 2.25 $ 2.09 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. The August 2023 authorization does not have a prescribed expiration date. As of April 28, 2024, approximately $11.7 billion of the $15.0 billion share repurchase authorization remained available. In March 2024, we paused share repurchases as a result of the pending acquisition of SRS (see Note 9 ). 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 28, April 30, Total number of shares repurchased 2 10 Total cost of shares repurchased $ 600 $ 3,028 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. 28, 2024
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 28, 2024 January 28, 2024 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ 11 $ — Derivative agreements – liabilities (997) (859) Total $ (986) $ (859) 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. We did not have any material assets or liabilities that were measured and recognized at fair value on a nonrecurring basis during the three months ended April 28, 2024 or April 30, 2023. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, receivables, accounts payable, and short-term debt approximate fair value due to their short-term nature. The following table presents the aggregate fair values and carrying values of our senior notes: April 28, 2024 January 28, 2024 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 36,103 $ 39,613 $ 38,495 $ 40,843

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	3 Months Ended
	Apr. 28, 2024
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 April 28, April 30, Basic weighted average common shares 989 1,010 Effect of potentially dilutive securities (1) 3 3 Diluted weighted average common shares 992 1,013 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. 28, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies	CONTINGENCIES We 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.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Apr. 28, 2024
Business Combination and Asset Acquisition [Abstract]
Acquisitions	ACQUISITIONS Pending SRS Acquisition On March 27, 2024, we entered into a definitive agreement to acquire SRS Distribution Inc., a leading residential specialty trade distribution company across several verticals serving the professional roofer, landscaper and pool contractor. Under the terms of the merger agreement, a subsidiary of The Home Depot, Inc. will merge with and into Shingle Acquisition Holdings, Inc., the parent company of SRS, and we will pay aggregate consideration of $18.25 billion, subject to customary adjustments for SRS’s debt, cash, transaction expenses and net working capital. The closing of the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to be completed by the end of fiscal 2024. Under the terms of the merger agreement, the Company will be obligated to pay a termination fee of $894 million in the event SRS or the Company terminates the merger agreement due to an antitrust-related governmental prohibition on the transaction or if the closing has not occurred on or before the termination date, as defined in the merger agreement, and all other closing conditions are otherwise satisfied. The acquisition is expected to be funded through a combination of cash on hand; borrowings under our commercial paper program, which has been expanded in anticipation of the pending acquisition as further discussed in Note 4 ; and the issuance of long-term debt.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Pay vs Performance Disclosure
Net earnings	$ 3,600	$ 3,873

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Apr. 28, 2024
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)	3 Months Ended
	Apr. 28, 2024
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.
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 2023 Form 10-K.
Supplier Finance Programs	Supplier Finance Programs We have a supplier finance program whereby 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. The payment terms we negotiate with our suppliers are consistent, irrespective of whether a supplier participates in the program, and we are not a party to the agreements between the participating financial institutions and the suppliers in connection with the program. We do not reimburse suppliers for any costs they incur for participation in the program, and we have not pledged any assets as security or provided any guarantees as part of the program. Our outstanding payment obligations under our supplier finance program were $404 million at April 28, 2024 and $514 million at January 28, 2024 and are recorded within accounts payable on the consolidated balance sheets.
Recent Accounting Pronouncements	Recent Accounting Pronouncements We did not adopt any new accounting pronouncements during the three months ended April 28, 2024 that had a material impact on our consolidated financial condition, results of operations or cash flows. There were no significant changes in recently issued accounting pronouncements pending adoption from those disclosed in the 2023 Form 10-K, and those not discussed in the 2023 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.

SEGMENT REPORTING AND NET SAL_2

SEGMENT REPORTING AND NET SALES (Tables)	3 Months Ended
	Apr. 28, 2024
Segment Reporting [Abstract]
Summary of Net Sales, Classified by Geography	The following table presents net sales, classified by geography: Three Months Ended in millions April 28, April 30, Net sales – in the U.S. $ 33,569 $ 34,507 Net sales – outside the U.S. 2,849 2,750 Net sales $ 36,418 $ 37,257
Summary of Net Sales by Products and Services	The following table presents net sales by products and services: Three Months Ended in millions April 28, April 30, Net sales – products $ 35,078 $ 35,888 Net sales – services 1,340 1,369 Net sales $ 36,418 $ 37,257
Summary of Net Sales by Major Product Line	The following table presents our major product lines and the related merchandising departments (and related services): Major Product Line Merchandising Departments Building Materials Building Materials, Electrical, Lumber, Millwork, and Plumbing Décor Appliances, Bath, Flooring, Kitchen & Blinds, Lighting, and Paint Hardlines Hardware, Indoor Garden, Outdoor Garden, Power, and Storage & Organization The following table presents net sales by major product line (and related services): Three Months Ended in millions April 28, April 30, Building Materials $ 12,614 $ 12,993 Décor 12,344 12,704 Hardlines 11,460 11,560 Net sales $ 36,418 $ 37,257 ————— Note: As discussed above, we made changes impacting our product lines and certain merchandising departments in the first quarter of fiscal 2024. As a result, prior-year amounts have been reclassified to conform with the current-year presentation. These changes had no impact on consolidated net sales. For further information regarding the impact of these changes to the sales information for our major product lines and merchandising departments presented in our 2023 Form 10-K, refer to Part II, Item 5. Other Information .

PROPERTY AND LEASES (Tables)

PROPERTY AND LEASES (Tables)	3 Months Ended
	Apr. 28, 2024
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 April 28, January 28, Assets: Operating lease assets Operating lease right-of-use assets $ 7,913 $ 7,884 Finance lease assets (1) Net property and equipment 2,777 2,840 Total lease assets $ 10,690 $ 10,724 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 1,073 $ 1,050 Finance lease liabilities Current installments of long-term debt 264 268 Long-term: Operating lease liabilities Long-term operating lease liabilities 7,107 7,082 Finance lease liabilities Long-term debt, excluding current installments 2,946 3,000 Total lease liabilities $ 11,390 $ 11,400 ————— (1) Finance lease assets are recorded net of accumulated amortization of $1.3 billion as of April 28, 2024 and $1.2 billion as of January 28, 2024.
Summary of Supplemental Non-Cash Information Related to Leases	The following table presents supplemental non-cash information related to leases: Three Months Ended in millions April 28, April 30, Lease assets obtained in exchange for new operating lease liabilities $ 319 $ 254 Lease assets obtained in exchange for new finance lease liabilities 28 114

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Apr. 28, 2024
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 April 28, April 30, Common stock: Shares at beginning of period 1,796 1,794 Shares issued under employee stock plans, net 2 1 Shares at end of period 1,798 1,795 Treasury stock: Shares at beginning of period (804) (778) Repurchases of common stock (2) (10) Shares at end of period (806) (788) Shares outstanding at end of period 992 1,007 Cash dividends per share $ 2.25 $ 2.09
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 April 28, April 30, Total number of shares repurchased 2 10 Total cost of shares repurchased $ 600 $ 3,028

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Apr. 28, 2024
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: April 28, 2024 January 28, 2024 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ 11 $ — Derivative agreements – liabilities (997) (859) Total $ (986) $ (859)
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: April 28, 2024 January 28, 2024 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 36,103 $ 39,613 $ 38,495 $ 40,843

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	3 Months Ended
	Apr. 28, 2024
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 April 28, April 30, Basic weighted average common shares 989 1,010 Effect of potentially dilutive securities (1) 3 3 Diluted weighted average common shares 992 1,013 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 (Details) - USD ($) $ in Millions	Apr. 28, 2024	Jan. 28, 2024
Accounting Policies [Abstract]
Supplier finance program	$ 404	$ 514

SEGMENT REPORTING AND NET SAL_3

SEGMENT REPORTING AND NET SALES - Summary of Net Sales (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Disaggregation of Revenue [Line Items]
Net sales	$ 36,418	$ 37,257
Products
Disaggregation of Revenue [Line Items]
Net sales	35,078	35,888
Services
Disaggregation of Revenue [Line Items]
Net sales	1,340	1,369
Building Materials
Disaggregation of Revenue [Line Items]
Net sales	12,614	12,993
Décor
Disaggregation of Revenue [Line Items]
Net sales	12,344	12,704
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	11,460	11,560
In the U.S.
Disaggregation of Revenue [Line Items]
Net sales	33,569	34,507
Outside the U.S.
Disaggregation of Revenue [Line Items]
Net sales	$ 2,849	$ 2,750

SEGMENT REPORTING AND NET SAL_4

SEGMENT REPORTING AND NET SALES - Narrative (Details) $ in Billions	3 Months Ended
	Apr. 28, 2024 USD ($) segment reportableSegment	Jan. 28, 2024 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	3
Number of reportable segments | reportableSegment	1
Deferred revenue	$ 1.8	$ 1.7
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. 28, 2024	Jan. 28, 2024
Leases [Abstract]
Accumulated depreciation and amortization	$ 27.7	$ 27.1

PROPERTY AND LEASES - Summary o

PROPERTY AND LEASES - Summary of Assets and Liabilities Related to Operating and Finance Leases (Details) - USD ($) $ in Millions	Apr. 28, 2024	Jan. 28, 2024
Assets
Operating lease assets	$ 7,913	$ 7,884
Finance lease assets	2,777	2,840
Total lease assets	10,690	10,724
Current:
Operating lease liabilities	1,073	1,050
Finance lease liabilities	264	268
Long-term:
Operating lease liabilities	7,107	7,082
Finance lease liabilities	2,946	3,000
Total lease liabilities	11,390	11,400
Finance lease asset accumulated amortization	$ 1,300	$ 1,200

PROPERTY AND LEASES - Summary_2

PROPERTY AND LEASES - Summary of Supplemental Non-Cash Information Related to Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Leases [Abstract]
Lease assets obtained in exchange for new operating lease liabilities	$ 319	$ 254
Lease assets obtained in exchange for new finance lease liabilities	$ 28	$ 114

DEBT AND DERIVATIVE INSTRUMEN_2

DEBT AND DERIVATIVE INSTRUMENTS - Short-term Debt (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended
	May 07, 2024	Feb. 29, 2024	Apr. 28, 2024	Jan. 28, 2024
Debt Instrument [Line Items]
Short-term debt			$ 8	$ 0
Back-up credit facilities outstanding			0	$ 0
Senior Notes Due February 2024, 3.75% | Senior Notes
Debt Instrument [Line Items]
Repayments of debt		$ 1,100
Debt instrument interest rate (in percentage)		3.75%
Commercial Paper
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility			5,000
Maximum amount outstanding during period			117
Commercial Paper | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 19,500
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility			5,000
Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	19,500
Revolving Credit Facility | 5-year Back-up Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility			$ 3,500
Expiration period			5 years
Revolving Credit Facility | 364-day Back-up Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility			$ 1,500
Expiration period			364 days
Revolving Credit Facility | 364-day Back-up Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 3,500
Expiration period	364 days
Revolving Credit Facility | Three Year Back Up Credit Facility Expiring May 2027 | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 1,000
Expiration period	3 years
Revolving Credit Facility | 364-day Back-up Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 10,000
Expiration period	364 days

DEBT AND DERIVATIVE INSTRUMEN_3

DEBT AND DERIVATIVE INSTRUMENTS - Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions	Apr. 28, 2024	Jan. 28, 2024
Derivative [Line Items]
Cash collateral received	$ 844	$ 714
Interest Rate Swap | Fair Value Hedging
Derivative [Line Items]
Notional amount	5,400	5,400
Fair value agreements	$ 995	$ 858

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
	Apr. 28, 2024	Apr. 30, 2023	Jan. 28, 2024
Common stock:
Shares at beginning of period (in shares)	1,796	1,794
Shares issued under employee stock plans, net (in shares)	2	1
Shares at end of period (in shares)	1,798	1,795
Treasury stock:
Shares at beginning of period (in shares)	(804)	(778)
Repurchases of common stock (in shares)	(2)	(10)
Shares at end of period (in shares)	(806)	(788)
Shares outstanding at end of period (in shares)	992	1,007	992
Cash dividends per share (in dollars per share)	$ 2.25	$ 2.09

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Billions	Apr. 28, 2024	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	$ 11.7
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
	Apr. 28, 2024	Apr. 30, 2023
Equity [Abstract]
Total number of shares repurchased	2	10
Total cost of shares repurchased	$ 600	$ 3,028

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	Apr. 28, 2024	Jan. 28, 2024
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items]
Derivative agreements – assets	$ 11	$ 0
Derivative agreements – liabilities	(997)	(859)
Total	$ (986)	$ (859)

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	Apr. 28, 2024	Jan. 28, 2024
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Carrying value of senior notes	$ 39,613	$ 40,843
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	$ 36,103	$ 38,495

WEIGHTED AVERAGE COMMON SHARE_2

WEIGHTED AVERAGE COMMON SHARES (Details) - shares shares in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Reconciliation of Basic to Diluted Weighted Average Common Shares:
Basic weighted average common shares (in shares)	989	1,010
Effect of potentially dilutive securities (in shares)	3	3
Diluted weighted average common shares (in shares)	992	1,013
Anti-dilutive securities excluded from diluted weighted average common shares (in shares)	1	1

ACQUISITIONS (Details)

ACQUISITIONS (Details) - SRS Distribution Inc $ in Millions	Mar. 27, 2024 USD ($)
Business Acquisition [Line Items]
Termination fee	$ 894
Pending Business Acquisition, Consideration	$ 18,250