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 |