Cover
Cover - shares | 6 Months Ended | |
Jul. 28, 2024 | Aug. 13, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 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, $0.05 Par Value Per Share | |
Trading Symbol | HD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 993,293,377 | |
Entity Central Index Key | 0000354950 | |
Current Fiscal Year End Date | --02-02 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 28, 2024 | Jan. 28, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 1,613 | $ 3,760 |
Receivables, net | 5,503 | 3,328 |
Merchandise inventories | 23,060 | 20,976 |
Other current assets | 2,097 | 1,711 |
Total current assets | 32,273 | 29,775 |
Net property and equipment | 26,640 | 26,154 |
Operating lease right-of-use assets | 8,613 | 7,884 |
Goodwill | 19,414 | 8,455 |
Intangible assets, net | 9,214 | 3,606 |
Other assets | 692 | 656 |
Total assets | 96,846 | 76,530 |
Current liabilities: | ||
Short-term debt | 2,527 | 0 |
Accounts payable | 13,206 | 10,037 |
Accrued salaries and related expenses | 2,105 | 2,096 |
Sales taxes payable | 645 | 449 |
Deferred revenue | 2,754 | 2,762 |
Income taxes payable | 40 | 28 |
Current installments of long-term debt | 1,339 | 1,368 |
Current operating lease liabilities | 1,242 | 1,050 |
Other accrued expenses | 4,265 | 4,225 |
Total current liabilities | 28,123 | 22,015 |
Long-term debt, excluding current installments | 51,869 | 42,743 |
Long-term operating lease liabilities | 7,635 | 7,082 |
Deferred income taxes | 2,074 | 863 |
Other long-term liabilities | 2,725 | 2,783 |
Total liabilities | 92,426 | 75,486 |
Contingencies (Note 9) | ||
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,799 shares at July 28, 2024 and 1,796 shares at January 28, 2024; outstanding: 993 shares at July 28, 2024 and 992 shares at January 28, 2024 | 90 | 90 |
Paid-in capital | 13,731 | 13,147 |
Retained earnings | 87,357 | 83,656 |
Accumulated other comprehensive loss | (787) | (477) |
Treasury stock, at cost, 806 shares at July 28, 2024 and 804 shares at January 28, 2024 | (95,971) | (95,372) |
Total stockholders’ equity | 4,420 | 1,044 |
Total liabilities and stockholders’ equity | $ 96,846 | $ 76,530 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Jul. 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) | 1,799 | 1,796 |
Common stock, outstanding (in shares) | 993 | 992 |
Treasury stock (in shares) | 806 | 804 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 43,175 | $ 42,916 | $ 79,593 | $ 80,173 |
Cost of sales | 28,759 | 28,759 | 52,744 | 53,459 |
Gross profit | 14,416 | 14,157 | 26,849 | 26,714 |
Operating expenses: | ||||
Selling, general and administrative | 7,144 | 6,915 | 13,811 | 13,270 |
Depreciation and amortization | 738 | 653 | 1,425 | 1,304 |
Total operating expenses | 7,882 | 7,568 | 15,236 | 14,574 |
Operating income | 6,534 | 6,589 | 11,613 | 12,140 |
Interest and other (income) expense: | ||||
Interest income and other, net | (84) | (41) | (141) | (74) |
Interest expense | 573 | 469 | 1,058 | 943 |
Interest and other, net | 489 | 428 | 917 | 869 |
Earnings before provision for income taxes | 6,045 | 6,161 | 10,696 | 11,271 |
Provision for income taxes | 1,484 | 1,502 | 2,535 | 2,739 |
Net earnings | $ 4,561 | $ 4,659 | $ 8,161 | $ 8,532 |
Basic weighted average common shares (in shares) | 990 | 1,000 | 989 | 1,005 |
Basic earnings per share (in dollars per share) | $ 4.61 | $ 4.66 | $ 8.25 | $ 8.49 |
Diluted weighted average common shares (in shares) | 992 | 1,003 | 992 | 1,008 |
Diluted earnings per share (in dollars per share) | $ 4.60 | $ 4.65 | $ 8.23 | $ 8.46 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 4,561 | $ 4,659 | $ 8,161 | $ 8,532 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (249) | 168 | (259) | 247 |
Cash flow hedges | (60) | 2 | (51) | 4 |
Total other comprehensive income (loss), net of tax | (309) | 170 | (310) | 251 |
Comprehensive income | $ 4,252 | $ 4,829 | $ 7,851 | $ 8,783 |
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 | 35 | ||||
Stock-based compensation expense | 215 | |||||
Net earnings | $ 8,532 | 8,532 | ||||
Cash dividends | (4,215) | |||||
Foreign currency translation adjustments, net of tax | 247 | 247 | ||||
Cash flow hedges, net of tax | 4 | 4 | ||||
Repurchases of common stock | (5,045) | (5,045) | ||||
Balance at end of period at Jul. 30, 2023 | 1,335 | 90 | 12,842 | 81,213 | (467) | (92,343) |
Balance at beginning of period at Apr. 30, 2023 | 90 | 12,584 | 78,651 | (637) | (90,326) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock plans, net | 0 | 154 | ||||
Stock-based compensation expense | 104 | |||||
Net earnings | 4,659 | 4,659 | ||||
Cash dividends | (2,097) | |||||
Foreign currency translation adjustments, net of tax | 168 | 168 | ||||
Cash flow hedges, net of tax | 2 | 2 | ||||
Repurchases of common stock | (2,017) | (2,017) | ||||
Balance at end of period at Jul. 30, 2023 | 1,335 | 90 | 12,842 | 81,213 | (467) | (92,343) |
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 | 362 | ||||
Stock-based compensation expense | 222 | |||||
Net earnings | 8,161 | 8,161 | ||||
Cash dividends | (4,460) | |||||
Foreign currency translation adjustments, net of tax | (259) | (259) | ||||
Cash flow hedges, net of tax | (51) | (51) | ||||
Repurchases of common stock | (599) | (599) | ||||
Balance at end of period at Jul. 28, 2024 | 4,420 | 90 | 13,731 | 87,357 | (787) | (95,971) |
Balance at beginning of period at Apr. 28, 2024 | 90 | 13,153 | 85,027 | (478) | (95,972) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock plans, net | 0 | 466 | ||||
Stock-based compensation expense | 112 | |||||
Net earnings | 4,561 | 4,561 | ||||
Cash dividends | (2,231) | |||||
Foreign currency translation adjustments, net of tax | (249) | (249) | ||||
Cash flow hedges, net of tax | (60) | (60) | ||||
Repurchases of common stock | 1 | |||||
Balance at end of period at Jul. 28, 2024 | $ 4,420 | $ 90 | $ 13,731 | $ 87,357 | $ (787) | $ (95,971) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jul. 28, 2024 | Jul. 30, 2023 | |
Cash Flows from Operating Activities: | ||
Net earnings | $ 8,161 | $ 8,532 |
Reconciliation of net earnings to net cash provided by operating activities: | ||
Depreciation and amortization, excluding amortization of intangible assets | 1,615 | 1,500 |
Intangible asset amortization | 142 | 88 |
Stock-based compensation expense | 222 | 215 |
Changes in receivables, net | (391) | (492) |
Changes in merchandise inventories | (214) | 1,751 |
Changes in other current assets | (339) | (392) |
Changes in accounts payable and accrued expenses | 1,628 | 929 |
Changes in deferred revenue | (31) | 10 |
Changes in income taxes payable | 14 | (32) |
Changes in deferred income taxes | 159 | (48) |
Other operating activities | (60) | 144 |
Net cash provided by operating activities | 10,906 | 12,205 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,566) | (1,697) |
Payments for businesses acquired, net | (17,570) | (215) |
Other investing activities | 38 | 10 |
Net cash used in investing activities | (19,098) | (1,902) |
Cash Flows from Financing Activities: | ||
Proceeds from short-term debt, net | 2,527 | 0 |
Proceeds from long-term debt, net of discounts | 9,952 | 0 |
Repayments of long-term debt | (1,255) | (1,130) |
Repurchases of common stock | (649) | (4,954) |
Proceeds from sales of common stock | 210 | 175 |
Cash dividends | (4,460) | (4,215) |
Other financing activities | (212) | (142) |
Net cash provided by (used in) financing activities | 6,113 | (10,266) |
Change in cash and cash equivalents | (2,079) | 37 |
Effect of exchange rate changes on cash and cash equivalents | (68) | 20 |
Cash and cash equivalents at beginning of period | 3,760 | 2,757 |
Cash and cash equivalents at end of period | 1,613 | 2,814 |
Supplemental Disclosures: | ||
Cash paid for interest, net of interest capitalized | 982 | 900 |
Cash paid for income taxes | 2,634 | 2,894 |
Fair value of common stock issued | $ 321 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jul. 28, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of The Home Depot, Inc., together with its subsidiaries (the “Company,” “Home Depot,” “we,” “our” or “us”), 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. During the second quarter of fiscal 2024, we completed the acquisition of SRS. Refer to Note 2 and Note 10 for further discussion on the acquisition, including certain impacts of the acquisition on our consolidated financial statements. Reclassifications Effective July 28, 2024, we began separately presenting intangible assets, net, on the consolidated balance sheets, which were previously included in the other assets line item. In addition, we began separately presenting intangible asset amortization on the statements of cash flows, which was previously included in the depreciation and amortization line item. Prior period amounts have been reclassified to conform to the current year’s financial statement presentation. Receivables, net The following table presents components of receivables, net: in millions July 28, January 28, Card receivables $ 1,240 $ 988 Rebate receivables 1,395 841 Customer receivables 2,296 924 Other receivables 572 575 Receivables, net $ 5,503 $ 3,328 Card receivables consist of payments due from financial institutions for the settlement of credit card and debit card transactions. Rebate receivables represent amounts due from vendors for volume and co-op advertising rebates. Customer receivables relate to credit extended directly to certain customers in the ordinary course of business, which increased compared to the beginning of the year as a result of the SRS acquisition. The valuation allowance related to our receivables was not material to our consolidated financial statements at July 28, 2024 or January 28, 2024. 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 $530 million at July 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 six months ended July 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 | 6 Months Ended |
Jul. 28, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting And Net Sales | SEGMENT REPORTING AND NET SALES The Company defines its segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker (“CODM”), our President and Chief Executive Officer, to analyze financial performance, make decisions, and allocate resources. The Company is engaged in the operation of retail stores and sells a wide assortment of building materials, home improvement products, lawn and garden products, décor products, and facilities maintenance, repair and operations products both in stores and online. We also provide a number of services, including home improvement installation services and tool and equipment rental. We currently conduct these operations in the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico, each of which represents an operating segment. For disclosure purposes, we aggregate these three operating segments into one reportable segment (the Primary segment) due to the similar nature of their operations and economic characteristics. As discussed in Note 10 , in June 2024, we acquired SRS, a leading residential specialty trade distribution company across several verticals serving the professional roofer, landscaper and pool contractor through its branches located throughout the U.S. SRS is organized as three different lines of business: roofing and complementary building products, landscape, and pool. We have determined each of these three lines of business represents an operating segment, none of which meet the thresholds prescribed under Topic 280 to be deemed a reportable segment. The following presents a reconciliation of the results of our Primary segment to our consolidated totals: Three Months Ended Six Months Ended July 28, 2024 July 28, 2024 in millions Primary Segment Other Consolidated Primary Segment Other Consolidated Net sales $ 41,901 $ 1,274 $ 43,175 $ 78,319 $ 1,274 $ 79,593 Operating income (1) 6,462 72 6,534 11,541 72 11,613 Interest income and other, net (84) (141) Interest expense 573 1,058 Earnings before provision for income taxes $ 6,045 $ 10,696 ————— (1) Includes intangible asset amortization expense of $51 million and $103 million for the three and six months ended July 28, 2024, respectively, in our Primary segment, and intangible asset amortization expense of $39 million for both the three and six months ended July 28, 2024 in Other. “Other” in the table above represents our SRS operations and is reflective of partial period results beginning from the acquisition date of June 18, 2024. Net sales in the Other category relate to the sale of products by SRS, with roofing and related products accounting for approximately 65% of sales in Other during both the three and six months ended July 28, 2024. Prior to the acquisition of SRS, our total Company consolidated results represented our Primary segment and therefore, a reconciliation to our consolidated totals is not applicable for the three and six months ended July 30, 2023. The following table presents our Primary segment 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), as well as Other net sales: Three Months Ended Six Months Ended in millions July 28, July 30, July 28, July 30, Building Materials $ 13,935 $ 14,268 $ 26,549 $ 27,261 Décor 13,591 13,863 25,935 26,567 Hardlines 14,375 14,785 25,835 26,345 Primary segment net sales 41,901 42,916 78,319 80,173 Other net sales (1) 1,274 — 1,274 — Net sales $ 43,175 $ 42,916 $ 79,593 $ 80,173 ————— (1) Represents SRS net sales since the acquisition date of June 18, 2024. See discussion above for information on the components of Other net sales. Note: During the first quarter of fiscal 2024, we made certain changes to our merchandising department structure that realign certain merchandising departments across our major product lines. 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. The following table presents net sales, classified by geography: Three Months Ended Six Months Ended in millions July 28, July 30, July 28, July 30, Net sales – in the U.S. $ 39,513 $ 39,191 $ 73,082 $ 73,698 Net sales – outside the U.S. 3,662 3,725 6,511 6,475 Net sales $ 43,175 $ 42,916 $ 79,593 $ 80,173 The following table presents net sales by products and services: Three Months Ended Six Months Ended in millions July 28, July 30, July 28, July 30, Net sales – products $ 41,605 $ 41,361 $ 76,683 $ 77,249 Net sales – services 1,570 1,555 2,910 2,924 Net sales $ 43,175 $ 42,916 $ 79,593 $ 80,173 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 July 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 July 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 and six months ended July 28, 2024 and July 30, 2023. |
PROPERTY AND LEASES
PROPERTY AND LEASES | 6 Months Ended |
Jul. 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 $28.3 billion as of July 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 July 28, January 28, Assets: Operating lease assets Operating lease right-of-use assets $ 8,613 $ 7,884 Finance lease assets (1) Net property and equipment 2,754 2,840 Total lease assets $ 11,367 $ 10,724 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 1,242 $ 1,050 Finance lease liabilities Current installments of long-term debt 273 268 Long-term: Operating lease liabilities Long-term operating lease liabilities 7,635 7,082 Finance lease liabilities Long-term debt, excluding current installments 2,923 3,000 Total lease liabilities $ 12,073 $ 11,400 ————— (1) Finance lease assets are recorded net of accumulated amortization of $1.4 billion as of July 28, 2024 and $1.2 billion as of January 28, 2024. The following table presents supplemental non-cash information related to leases: Six Months Ended in millions July 28, July 30, Lease assets obtained in exchange for new operating lease liabilities $ 670 $ 583 Lease assets obtained in exchange for new finance lease liabilities 74 192 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jul. 28, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table presents the changes in the carrying amount of our goodwill: in millions Primary Segment Other Consolidated Goodwill, balance at January 28, 2024 $ 8,455 $ — $ 8,455 Acquisitions (1) — 10,967 10,967 Other (2) (8) — (8) Goodwill, balance at July 28, 2024 $ 8,447 $ 10,967 $ 19,414 ————— (1) Fiscal 2024 activity represents the preliminary determination of goodwill related to the acquisition of SRS. See Note 10 for details regarding the SRS acquisition. (2) Primarily reflects the net impact of foreign currency translation as well as immaterial measurement period adjustments related to fiscal 2023 acquisitions. Intangible Assets The following table presents information regarding our intangible assets: July 28, 2024 (1) January 28, 2024 in millions Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-Lived Intangible Assets: Customer relationships $ 8,795 $ (797) $ 7,998 $ 3,425 $ (670) $ 2,755 Trade names 607 (40) 567 227 (25) 202 Other 11 (11) — 12 (12) — Indefinite-Lived Intangible Assets: Trade names 649 649 649 649 Total Intangible Assets $ 10,062 $ (848) $ 9,214 $ 4,313 $ (707) $ 3,606 ————— (1) Fiscal 2024 includes the preliminary allocation of fair value to intangible assets related to the acquisition of SRS. See Note 10 for details regarding the SRS acquisition. Our intangible asset amortization expense was $90 million and $44 million during the second quarter of fiscal 2024 and 2023, respectively, and $142 million and $88 million during the first six months of fiscal 2024 and 2023, respectively. The following table presents the estimated future amortization expense related to definite-lived intangible assets as of July 28, 2024: in millions Amortization Expense Fiscal 2024 - remaining $ 282 Fiscal 2025 551 Fiscal 2026 551 Fiscal 2027 542 Fiscal 2028 524 Thereafter 6,115 Total $ 8,565 |
DEBT AND DERIVATIVE INSTRUMENTS
DEBT AND DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jul. 28, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Derivative Instruments | DEBT AND DERIVATIVE INSTRUMENTS Short-Term Debt At the beginning of fiscal 2024, we had a commercial paper program that allowed for borrowings up to $5.0 billion. In connection with this 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. 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 acquisition of SRS (see Note 10 ). In May 2024, in connection with the increase in the commercial paper program, we also entered into three additional back-up credit facilities that consisted 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 provided that the commitments and any borrowings under this facility would be reduced by the amount of net cash proceeds we received from any future debt issuance. In June 2024, leading up to the acquisition of SRS on June 18, 2024, we raised commercial paper borrowings of over $15.0 billion to fund the transaction. On June 25, 2024, we received the proceeds from the issuance of $10.0 billion of long-term debt, as further discussed below, and immediately used the proceeds to repay approximately $10.0 billion of these commercial paper borrowings. On June 27, 2024, we terminated the $10.0 billion back-up credit facility, and subsequently reduced our commercial paper program from $19.5 billion to $9.5 billion. In July 2024, we also completed the renewal of our 364-day $1.5 billion credit facility, extending the maturity from July 2024 to July 2025. As of July 28, 2024, our commercial paper program allowed for borrowings up to $9.5 billion and is supported by $9.5 billion of back-up credit facilities. All of our short-term borrowings in the first six months of fiscal 2024 were under our commercial paper program, and the maximum amount outstanding at any time was $15.3 billion. At July 28, 2024, we had $2.5 billion of outstanding borrowings under our commercial paper program with a weighted average interest rate of 5.4% and no outstanding borrowings under our back-up credit facilities. Long-Term Debt June 2024 Issuance. In June 2024, we issued nine tranches of senior notes. • The first tranche consisted of $600 million of floating rate senior notes due December 24, 2025 (the “floating rate notes”). The floating rate notes bear interest at a variable rate determined quarterly equal to the compounded Secured Overnight Borrowing Rate (“SOFR”) plus 33 basis points. Interest on the floating rate notes is due quarterly on March 24, June 24, September 24, and December 24 of each year, beginning on September 24, 2024. • The second tranche consisted of $900 million of 5.100% senior notes due December 24, 2025 (the “2025 notes”) at a discount of $0.8 million. Interest on the 2025 notes is due semi-annually on June 24 and December 24 of each year, beginning on December 24, 2024. • The third tranche consisted of $1.5 billion of 5.150% senior notes due June 25, 2026 (the “2026 notes”) at a discount of $1.7 million. Interest on the 2026 notes is due semi-annually on June 25 and December 25 of each year, beginning on December 25, 2024. • The fourth tranche consisted of $1.0 billion of 4.875% senior notes due June 25, 2027 (the “2027 notes”) at a discount of $3.3 million. Interest on the 2027 notes is due semi-annually on June 25 and December 25 of each year, beginning on December 25, 2024. • The fifth tranche consisted of $1.25 billion of 4.750% senior notes due June 25, 2029 (the “2029 notes”) at a discount of $8.1 million. Interest on the 2029 notes is due semi-annually on June 25 and December 25 of each year, beginning on December 25, 2024. • The sixth tranche consisted of $1.0 billion of 4.850% senior notes due June 25, 2031 (the “2031 notes”) at a discount of $7.1 million. Interest on the 2031 notes is due semi-annually on June 25 and December 25 of each year, beginning on December 25, 2024. • The seventh tranche consisted of $1.75 billion of 4.950% senior notes due June 25, 2034 (the “2034 notes”) at a discount of $16.7 million. Interest on the 2034 notes is due semi-annually on June 25 and December 25 of each year, beginning on December 25, 2024. • The eighth tranche consisted of $1.5 billion of 5.300% senior notes due June 25, 2054 (the “2054 notes”) at a discount of $23.5 million. Interest on the 2054 notes is due semi-annually on June 25 and December 25 of each year, beginning on December 25, 2024. • The ninth tranche consisted of $500 million of 5.400% senior notes due June 25, 2064 (the “2064 notes”) at a discount of $8.5 million. Interest on the 2064 notes is due semi-annually on June 25 and December 25 of each year, beginning on December 25, 2024. • Issuance costs for the June 2024 issuance totaled $41 million. Redemption. The floating rate notes are not redeemable prior to maturity. Each of these fixed rate senior notes may be redeemed by us at any time, in whole or in part, at the redemption price plus accrued and unpaid interest up to the redemption date. With respect to the 2025 notes and 2026 notes, the redemption price is equal to the greater of (1) 100% of the principal amount of the notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the notes that would be due after the related redemption date. With respect to all other fixed rate notes, prior to the relevant Par Call Date, as defined in the respective notes, the redemption price is equal to the greater of (1) 100% of the principal amount of the notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest to the Par Call Date. With respect to all fixed rate notes other than the 2025 and 2026 notes, on or after the relevant Par Call Date, the redemption price is equal to 100% of the principal amount of such notes. Additionally, if a Change in Control Triggering Event occurs, as defined in the notes, holders of all such notes have the right to require us to offer payment, in cash, for those notes equal to 101% of the aggregate principal amount of such notes plus accrued and unpaid interest up to the date of purchase. The indenture governing these notes does not generally limit our ability to incur additional indebtedness or require us to maintain financial ratios or specified levels of net worth or liquidity. The indenture governing the notes contains various customary covenants; however, none are expected to impact our liquidity or capital resources. Repayments . In 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 July 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 July 28, 2024 and January 28, 2024, the fair values of these agreements totaled $796 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 report. 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 $686 million and $714 million as of July 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 July 28, 2024 or January 28, 2024. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jul. 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 Six Months Ended July 28, July 30, July 28, July 30, Common stock: Shares at beginning of period 1,798 1,795 1,796 1,794 Shares issued under employee stock plans, net 1 1 3 2 Shares at end of period 1,799 1,796 1,799 1,796 Treasury stock: Shares at beginning of period (806) (788) (804) (778) Repurchases of common stock — (7) (2) (17) Shares at end of period (806) (795) (806) (795) Shares outstanding at end of period 993 1,001 993 1,001 Cash dividends per share $ 2.25 $ 2.09 $ 4.50 $ 4.18 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 July 28, 2024, approximately $11.7 billion of the $15.0 billion share repurchase authorization remained available. In March 2024, we paused share repurchases in anticipation of the acquisition of SRS (see Note 10 ). 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 Six Months Ended July 28, July 30, July 28, July 30, Total number of shares repurchased — 7 2 17 Total cost of shares repurchased $ (1) $ 2,017 $ 599 $ 5,045 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 net excise taxes incurred on share repurchases. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jul. 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: July 28, 2024 January 28, 2024 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ — $ — Derivative agreements – liabilities (796) (859) Total $ (796) $ (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 5 . 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 and six months ended July 28, 2024 or July 30, 2023. See Note 10 for discussion on the fair values of assets acquired and liabilities assumed in our acquisition of SRS. 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: July 28, 2024 January 28, 2024 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 46,879 $ 49,709 $ 38,495 $ 40,843 |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES | 6 Months Ended |
Jul. 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 Six Months Ended July 28, July 30, July 28, July 30, Basic weighted average common shares 990 1,000 989 1,005 Effect of potentially dilutive securities (1) 2 3 3 3 Diluted weighted average common shares 992 1,003 992 1,008 Anti-dilutive securities excluded from diluted weighted average common shares 1 1 1 1 ————— (1) Represents the dilutive impact of stock-based awards. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jul. 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 | 6 Months Ended |
Jul. 28, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | ACQUISITIONS 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. On June 18, 2024, following the satisfaction or waiver of the applicable closing conditions, including receipt of the requisite regulatory approvals, the acquisition was completed and all merger consideration was transferred. Under the terms of the merger agreement, a subsidiary of The Home Depot, Inc. merged with and into Shingle Acquisition Holdings, Inc., the parent company of SRS, with Shingle Acquisition Holdings, Inc. as the surviving entity and a wholly owned subsidiary of the Company. We believe the acquisition of SRS will accelerate the Company’s growth with the residential professional customer. The acquisition is expected to complement our existing capabilities and enable us to better serve complex project purchase occasions with the renovator/remodeler, while also establishing the Company as a leading specialty trade distributor across multiple verticals. We primarily used a combination of proceeds from commercial paper borrowings, the issuance of long-term debt, as well as cash on hand to fund the acquisition. See Note 5 for further information on the financing for the transaction, and below for a summary of preliminary purchase consideration. The acquisition was accounted for in accordance with Accounting Standards Codification Topic 805 "Business Combinations," and SRS’s results of operations have been consolidated in the Company’s financial statements effective June 18, 2024. Acquisition-related costs were expensed as incurred and were not material. Fair Value of Consideration Transferred. The following table summarizes total preliminary purchase consideration: in millions Total cash consideration $ 17,720 Fair value of common stock issued (1) 321 Total preliminary purchase consideration $ 18,041 ————— (1) In connection with the acquisition, certain members of SRS’s management team concurrently reinvested a portion of their respective after-tax merger consideration proceeds into shares of the Company’s common stock. A portion of such shares of Company common stock are fully vested, and accordingly, the fair value of such shares was recorded as non-cash purchase consideration. A portion of such shares of Company common stock, which replaced legacy SRS stock-based awards, are subject to service-based vesting conditions over a three-year period and become forfeitable if such vesting conditions are not satisfied. Accordingly, a portion of the fair value of these shares was recorded as non-cash purchase consideration, and the remainder will be recorded as post-combination expense over the vesting period. The fair value of these shares, including the amount which will be recorded as post-combination compensation cost, is not material. Allocation of Consideration Transferred. We recorded a preliminary allocation of the purchase price to assets acquired and liabilities assumed based on their estimated fair values as of June 18, 2024. The following table summarizes the recorded fair values of the assets acquired and liabilities assumed: in millions Preliminary Fair Value Cash and cash equivalents $ 161 Receivables 1,832 Merchandise inventories 1,988 Property and equipment 834 Goodwill 10,967 Intangible assets 5,750 Other current and non-current assets 744 Total assets acquired $ 22,276 Accounts payable $ 1,791 Other current liabilities 584 Deferred tax liabilities (1) 1,078 Other long-term liabilities 782 Total liabilities assumed $ 4,235 ————— (1) Primarily resulting from the difference in book and tax basis related to identifiable intangible assets. The preliminary fair value of identifiable intangible assets was determined by using certain estimates and assumptions that are not observable in the market. The Company used the multi-period excess earnings method to value the customer relationships intangible assets. The significant assumptions used to estimate the fair value of customer relationships included forecasted revenues, customer attrition rates, and the discount rate. Determining the useful life of an intangible asset also requires judgment, as different types of intangible assets will have different useful lives. The preliminary fair value and estimated useful lives of identifiable intangible assets are as follows: in millions Weighted Average Useful Life (Years) Preliminary Fair Value Customer relationships 20 $ 5,370 Trade names 5 380 Total identifiable intangible assets $ 5,750 The goodwill arising from the acquisition is calculated as the excess of the purchase price over the net assets acquired and is attributable to (i) growth acceleration in the residential professional customer market; (ii) expansion in high growth verticals including roofing; (iii) additional addressable market opportunities; (iv) enhanced delivery network capabilities; and (v) growth in sales force. We expect approximately $1.0 billion of goodwill related to the acquisition to be deductible for U.S. federal and state income tax purposes. As the valuation is preliminary, we have not yet finalized the assignment of goodwill to our reporting units, and no goodwill currently resides in our Primary segment. We have completed preliminary valuation analyses necessary to assess the fair values of the assets acquired and liabilities assumed and the amount of goodwill to be recognized as of the acquisition date. These fair values were based on management’s estimates and assumptions; however, the amounts indicated above are preliminary in nature and are subject to adjustment as additional information is obtained about the facts and circumstances that existed as of the acquisition date. Accordingly, there may be adjustments to the assigned values of acquired assets and liabilities. The primary areas that remain preliminary include, but are not limited to, intangible assets including the preliminary assumptions used in their estimates of fair values and their respective estimated useful lives, the valuation of certain tangible assets, income taxes, and residual goodwill. The final determination of the fair values, purchase consideration, related income tax impacts and residual goodwill will be completed as soon as practicable, and within the measurement period of up to one year from the acquisition date as permitted under GAAP. Any adjustments to provisional amounts that are identified during the measurement period will be recorded in the reporting period in which the adjustment is determined. Results of Operations. Net sales attributable to SRS since the completion of the acquisition and included within our results of operations for both the three and six months ended July 28, 2024 totaled $1.3 billion. Net earnings attributable to SRS since the completion of the acquisition and included within our results of operations for both the three and six months ended July 28, 2024 were immaterial. Pro forma results of operations would not be materially different as a result of the acquisition and therefore are not presented. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net earnings | $ 4,561 | $ 4,659 | $ 8,161 | $ 8,532 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 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) | 6 Months Ended |
Jul. 28, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Reclassifications | Reclassifications Effective July 28, 2024, we began separately presenting intangible assets, net, on the consolidated balance sheets, which were previously included in the other assets line item. In addition, we began separately presenting intangible asset amortization on the statements of cash flows, which was previously included in the depreciation and amortization line item. Prior period amounts have been reclassified to conform to the current year’s financial statement presentation. |
Receivables | Card receivables consist of payments due from financial institutions for the settlement of credit card and debit card transactions. Rebate receivables represent amounts due from vendors for volume and co-op advertising rebates. Customer receivables relate to credit extended directly to certain customers in the ordinary course of business, which increased compared to the beginning of the year as a result of the SRS acquisition. |
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 $530 million at July 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 six months ended July 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jul. 28, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents components of receivables, net: in millions July 28, January 28, Card receivables $ 1,240 $ 988 Rebate receivables 1,395 841 Customer receivables 2,296 924 Other receivables 572 575 Receivables, net $ 5,503 $ 3,328 |
SEGMENT REPORTING AND NET SAL_2
SEGMENT REPORTING AND NET SALES (Tables) | 6 Months Ended |
Jul. 28, 2024 | |
Segment Reporting [Abstract] | |
Summary of Segment, Reconciliation of Other Items from Segments to Consolidated | The following presents a reconciliation of the results of our Primary segment to our consolidated totals: Three Months Ended Six Months Ended July 28, 2024 July 28, 2024 in millions Primary Segment Other Consolidated Primary Segment Other Consolidated Net sales $ 41,901 $ 1,274 $ 43,175 $ 78,319 $ 1,274 $ 79,593 Operating income (1) 6,462 72 6,534 11,541 72 11,613 Interest income and other, net (84) (141) Interest expense 573 1,058 Earnings before provision for income taxes $ 6,045 $ 10,696 ————— (1) Includes intangible asset amortization expense of $51 million and $103 million for the three and six months ended July 28, 2024, respectively, in our Primary segment, and intangible asset amortization expense of $39 million for both the three and six months ended July 28, 2024 in Other. |
Summary of Net Sales by Major Product Line | The following table presents our Primary segment 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), as well as Other net sales: Three Months Ended Six Months Ended in millions July 28, July 30, July 28, July 30, Building Materials $ 13,935 $ 14,268 $ 26,549 $ 27,261 Décor 13,591 13,863 25,935 26,567 Hardlines 14,375 14,785 25,835 26,345 Primary segment net sales 41,901 42,916 78,319 80,173 Other net sales (1) 1,274 — 1,274 — Net sales $ 43,175 $ 42,916 $ 79,593 $ 80,173 ————— (1) Represents SRS net sales since the acquisition date of June 18, 2024. See discussion above for information on the components of Other net sales. |
Summary of Net Sales, Classified by Geography | The following table presents net sales, classified by geography: Three Months Ended Six Months Ended in millions July 28, July 30, July 28, July 30, Net sales – in the U.S. $ 39,513 $ 39,191 $ 73,082 $ 73,698 Net sales – outside the U.S. 3,662 3,725 6,511 6,475 Net sales $ 43,175 $ 42,916 $ 79,593 $ 80,173 |
Summary of Net Sales by Products and Services | The following table presents net sales by products and services: Three Months Ended Six Months Ended in millions July 28, July 30, July 28, July 30, Net sales – products $ 41,605 $ 41,361 $ 76,683 $ 77,249 Net sales – services 1,570 1,555 2,910 2,924 Net sales $ 43,175 $ 42,916 $ 79,593 $ 80,173 |
PROPERTY AND LEASES (Tables)
PROPERTY AND LEASES (Tables) | 6 Months Ended |
Jul. 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 July 28, January 28, Assets: Operating lease assets Operating lease right-of-use assets $ 8,613 $ 7,884 Finance lease assets (1) Net property and equipment 2,754 2,840 Total lease assets $ 11,367 $ 10,724 Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ 1,242 $ 1,050 Finance lease liabilities Current installments of long-term debt 273 268 Long-term: Operating lease liabilities Long-term operating lease liabilities 7,635 7,082 Finance lease liabilities Long-term debt, excluding current installments 2,923 3,000 Total lease liabilities $ 12,073 $ 11,400 ————— (1) Finance lease assets are recorded net of accumulated amortization of $1.4 billion as of July 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: Six Months Ended in millions July 28, July 30, Lease assets obtained in exchange for new operating lease liabilities $ 670 $ 583 Lease assets obtained in exchange for new finance lease liabilities 74 192 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jul. 28, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in the carrying amount of our goodwill: in millions Primary Segment Other Consolidated Goodwill, balance at January 28, 2024 $ 8,455 $ — $ 8,455 Acquisitions (1) — 10,967 10,967 Other (2) (8) — (8) Goodwill, balance at July 28, 2024 $ 8,447 $ 10,967 $ 19,414 ————— (1) Fiscal 2024 activity represents the preliminary determination of goodwill related to the acquisition of SRS. See Note 10 for details regarding the SRS acquisition. (2) Primarily reflects the net impact of foreign currency translation as well as immaterial measurement period adjustments related to fiscal 2023 acquisitions. |
Schedule of Finite-Lived Intangible Assets | The following table presents information regarding our intangible assets: July 28, 2024 (1) January 28, 2024 in millions Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-Lived Intangible Assets: Customer relationships $ 8,795 $ (797) $ 7,998 $ 3,425 $ (670) $ 2,755 Trade names 607 (40) 567 227 (25) 202 Other 11 (11) — 12 (12) — Indefinite-Lived Intangible Assets: Trade names 649 649 649 649 Total Intangible Assets $ 10,062 $ (848) $ 9,214 $ 4,313 $ (707) $ 3,606 ————— (1) Fiscal 2024 includes the preliminary allocation of fair value to intangible assets related to the acquisition of SRS. See Note 10 for details regarding the SRS acquisition. |
Schedule of Indefinite-Lived Intangible Assets | The following table presents information regarding our intangible assets: July 28, 2024 (1) January 28, 2024 in millions Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-Lived Intangible Assets: Customer relationships $ 8,795 $ (797) $ 7,998 $ 3,425 $ (670) $ 2,755 Trade names 607 (40) 567 227 (25) 202 Other 11 (11) — 12 (12) — Indefinite-Lived Intangible Assets: Trade names 649 649 649 649 Total Intangible Assets $ 10,062 $ (848) $ 9,214 $ 4,313 $ (707) $ 3,606 ————— (1) Fiscal 2024 includes the preliminary allocation of fair value to intangible assets related to the acquisition of SRS. See Note 10 for details regarding the SRS acquisition. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the estimated future amortization expense related to definite-lived intangible assets as of July 28, 2024: in millions Amortization Expense Fiscal 2024 - remaining $ 282 Fiscal 2025 551 Fiscal 2026 551 Fiscal 2027 542 Fiscal 2028 524 Thereafter 6,115 Total $ 8,565 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jul. 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 Six Months Ended July 28, July 30, July 28, July 30, Common stock: Shares at beginning of period 1,798 1,795 1,796 1,794 Shares issued under employee stock plans, net 1 1 3 2 Shares at end of period 1,799 1,796 1,799 1,796 Treasury stock: Shares at beginning of period (806) (788) (804) (778) Repurchases of common stock — (7) (2) (17) Shares at end of period (806) (795) (806) (795) Shares outstanding at end of period 993 1,001 993 1,001 Cash dividends per share $ 2.25 $ 2.09 $ 4.50 $ 4.18 |
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 Six Months Ended July 28, July 30, July 28, July 30, Total number of shares repurchased — 7 2 17 Total cost of shares repurchased $ (1) $ 2,017 $ 599 $ 5,045 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jul. 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: July 28, 2024 January 28, 2024 in millions Fair Value (Level 2) Fair Value (Level 2) Derivative agreements – assets $ — $ — Derivative agreements – liabilities (796) (859) Total $ (796) $ (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: July 28, 2024 January 28, 2024 in millions Fair Value Carrying Fair Value Carrying Senior notes $ 46,879 $ 49,709 $ 38,495 $ 40,843 |
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES (Tables) | 6 Months Ended |
Jul. 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 Six Months Ended July 28, July 30, July 28, July 30, Basic weighted average common shares 990 1,000 989 1,005 Effect of potentially dilutive securities (1) 2 3 3 3 Diluted weighted average common shares 992 1,003 992 1,008 Anti-dilutive securities excluded from diluted weighted average common shares 1 1 1 1 ————— (1) Represents the dilutive impact of stock-based awards. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jul. 28, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes total preliminary purchase consideration: in millions Total cash consideration $ 17,720 Fair value of common stock issued (1) 321 Total preliminary purchase consideration $ 18,041 ————— (1) In connection with the acquisition, certain members of SRS’s management team concurrently reinvested a portion of their respective after-tax merger consideration proceeds into shares of the Company’s common stock. A portion of such shares of Company common stock are fully vested, and accordingly, the fair value of such shares was recorded as non-cash purchase consideration. A portion of such shares of Company common stock, which replaced legacy SRS stock-based awards, are subject to service-based vesting conditions over a three-year period and become forfeitable if such vesting conditions are not satisfied. Accordingly, a portion of the fair value of these shares was recorded as non-cash purchase consideration, and the remainder will be recorded as post-combination expense over the vesting period. The fair value of these shares, including the amount which will be recorded as post-combination compensation cost, is not material. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the recorded fair values of the assets acquired and liabilities assumed: in millions Preliminary Fair Value Cash and cash equivalents $ 161 Receivables 1,832 Merchandise inventories 1,988 Property and equipment 834 Goodwill 10,967 Intangible assets 5,750 Other current and non-current assets 744 Total assets acquired $ 22,276 Accounts payable $ 1,791 Other current liabilities 584 Deferred tax liabilities (1) 1,078 Other long-term liabilities 782 Total liabilities assumed $ 4,235 ————— (1) Primarily resulting from the difference in book and tax basis related to identifiable intangible assets. |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The preliminary fair value and estimated useful lives of identifiable intangible assets are as follows: in millions Weighted Average Useful Life (Years) Preliminary Fair Value Customer relationships 20 $ 5,370 Trade names 5 380 Total identifiable intangible assets $ 5,750 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Components of Receivables (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Jan. 28, 2024 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables, net | $ 5,503 | $ 3,328 |
Card receivables | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables, net | 1,240 | 988 |
Rebate receivables | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables, net | 1,395 | 841 |
Customer receivables | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables, net | 2,296 | 924 |
Other receivables | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables, net | $ 572 | $ 575 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Jan. 28, 2024 |
Accounting Policies [Abstract] | ||
Supplier finance program | $ 530 | $ 514 |
SEGMENT REPORTING AND NET SAL_3
SEGMENT REPORTING AND NET SALES - Summary of Segment, Reconciliation of Other Items from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 43,175 | $ 42,916 | $ 79,593 | $ 80,173 |
Operating income | 6,534 | 6,589 | 11,613 | 12,140 |
Interest income and other, net | (84) | (41) | (141) | (74) |
Interest expense | 573 | 469 | 1,058 | 943 |
Earnings before provision for income taxes | 6,045 | 6,161 | 10,696 | 11,271 |
Intangible asset amortization | 90 | 44 | 142 | 88 |
Primary Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Intangible asset amortization | 51 | 103 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,274 | 0 | 1,274 | 0 |
Operating income | 72 | 72 | ||
Intangible asset amortization | 39 | 39 | ||
Operating Segments | Primary Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 41,901 | $ 42,916 | 78,319 | $ 80,173 |
Operating income | $ 6,462 | $ 11,541 |
SEGMENT REPORTING AND NET SAL_4
SEGMENT REPORTING AND NET SALES - Summary of Net Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 43,175 | $ 42,916 | $ 79,593 | $ 80,173 |
In the U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 39,513 | 39,191 | 73,082 | 73,698 |
Outside the U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,662 | 3,725 | 6,511 | 6,475 |
Primary Segment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 41,901 | 42,916 | 78,319 | 80,173 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,274 | 0 | 1,274 | 0 |
Building Materials | Primary Segment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,935 | 14,268 | 26,549 | 27,261 |
Décor | Primary Segment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,591 | 13,863 | 25,935 | 26,567 |
Hardlines | Primary Segment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14,375 | 14,785 | 25,835 | 26,345 |
Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 41,605 | 41,361 | 76,683 | 77,249 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,570 | $ 1,555 | $ 2,910 | $ 2,924 |
SEGMENT REPORTING AND NET SAL_5
SEGMENT REPORTING AND NET SALES - Narrative (Details) $ in Billions | 6 Months Ended | |
Jul. 28, 2024 USD ($) segment reportableSegment | Jan. 28, 2024 USD ($) | |
Disaggregation of Revenue [Line Items] | ||
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 |
Product Concentration Risk | Revenue Benchmark | Roofing Products | Other | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 65% |
PROPERTY AND LEASES - Narrative
PROPERTY AND LEASES - Narrative (Details) - USD ($) $ in Billions | Jul. 28, 2024 | Jan. 28, 2024 |
Leases [Abstract] | ||
Accumulated depreciation and amortization | $ 28.3 | $ 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 | Jul. 28, 2024 | Jan. 28, 2024 |
Assets | ||
Operating lease assets | $ 8,613 | $ 7,884 |
Finance lease assets | 2,754 | 2,840 |
Total lease assets | 11,367 | 10,724 |
Current: | ||
Operating lease liabilities | 1,242 | 1,050 |
Finance lease liabilities | 273 | 268 |
Long-term: | ||
Operating lease liabilities | 7,635 | 7,082 |
Finance lease liabilities | 2,923 | 3,000 |
Total lease liabilities | 12,073 | 11,400 |
Finance lease asset accumulated amortization | $ 1,400 | $ 1,200 |
PROPERTY AND LEASES - Summary_2
PROPERTY AND LEASES - Summary of Supplemental Non-Cash Information Related to Leases (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 28, 2024 | Jul. 30, 2023 | |
Leases [Abstract] | ||
Lease assets obtained in exchange for new operating lease liabilities | $ 670 | $ 583 |
Lease assets obtained in exchange for new finance lease liabilities | $ 74 | $ 192 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Millions | 6 Months Ended |
Jul. 28, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, balance at beginning of year | $ 8,455 |
Acquisitions | 10,967 |
Other | (8) |
Goodwill, balance at end of year | 19,414 |
Primary Segment | |
Goodwill [Roll Forward] | |
Goodwill, balance at beginning of year | 8,455 |
Acquisitions | 0 |
Other | (8) |
Goodwill, balance at end of year | 8,447 |
Other | |
Goodwill [Roll Forward] | |
Goodwill, balance at beginning of year | 0 |
Acquisitions | 10,967 |
Other | 0 |
Goodwill, balance at end of year | $ 10,967 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Jan. 28, 2024 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (848) | $ (707) |
Net Carrying Amount | 8,565 | |
Indefinite-Lived Intangible Assets [Line Items] | ||
Total Intangible Assets | 10,062 | 4,313 |
Total Intangible, Net | 9,214 | 3,606 |
Trade names | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 649 | 649 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,795 | 3,425 |
Accumulated Amortization | (797) | (670) |
Net Carrying Amount | 7,998 | 2,755 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 607 | 227 |
Accumulated Amortization | (40) | (25) |
Net Carrying Amount | 567 | 202 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11 | 12 |
Accumulated Amortization | (11) | (12) |
Net Carrying Amount | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization | $ 90 | $ 44 | $ 142 | $ 88 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) $ in Millions | Jul. 28, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2024 - remaining | $ 282 |
Fiscal 2025 | 551 |
Fiscal 2026 | 551 |
Fiscal 2027 | 542 |
Fiscal 2028 | 524 |
Thereafter | 6,115 |
Net Carrying Amount | $ 8,565 |
DEBT AND DERIVATIVE INSTRUMEN_2
DEBT AND DERIVATIVE INSTRUMENTS - Short-term Debt (Details) $ in Billions | 1 Months Ended | 6 Months Ended | ||||||
Jun. 27, 2024 USD ($) | Jun. 25, 2024 USD ($) | Jun. 18, 2024 USD ($) | Jan. 29, 2024 USD ($) | Jul. 28, 2024 USD ($) | May 31, 2024 USD ($) creditFacility | Jul. 28, 2024 USD ($) | Jan. 28, 2024 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Back-up credit facilities outstanding | $ 0 | $ 0 | $ 0 | |||||
Short-term debt | 2.5 | 2.5 | $ 0 | |||||
Number of back-up credit facilities | creditFacility | 3 | |||||||
Borrowings of commercial paper | $ 15 | |||||||
Proceeds from Issuance of Senior Long-Term Debt | $ 10 | |||||||
Repayments of commercial paper | $ 10 | |||||||
Commercial Paper | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 5 | $ 9.5 | $ 19.5 | 9.5 | ||||
Maximum amount outstanding during period | $ 15.3 | |||||||
Weighted average interest rate | 5.40% | 5.40% | ||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | 5 | $ 9.5 | $ 9.5 | |||||
Revolving Credit Facility | 5-year Back-up Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 3.5 | |||||||
Expiration period | 5 years | |||||||
Revolving Credit Facility | 364-day Back-up Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 1.5 | $ 1.5 | $ 3.5 | $ 1.5 | ||||
Expiration period | 364 days | 364 days | 364 days | |||||
Revolving Credit Facility | Three Year Back Up Credit Facility Expiring May 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 1 | |||||||
Expiration period | 3 years | |||||||
Revolving Credit Facility | 364-day Back-up Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 10 | |||||||
Expiration period | 364 days | |||||||
Extinguishment of Debt, Amount | $ 10 |
DEBT AND DERIVATIVE INSTRUMEN_3
DEBT AND DERIVATIVE INSTRUMENTS - Long-term Debt (Details) $ in Millions | 1 Months Ended | |
Jun. 30, 2024 USD ($) tranche | Feb. 29, 2024 USD ($) | |
Debt Instrument [Line Items] | ||
Number of tranches | tranche | 9 | |
Senior Notes | Senior Notes Due December 24, 2025, Floating Rate, First Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 600 | |
Basis spread on variable rate (as a percent) | 0.33% | |
Senior Notes | Senior Notes Due December 24, 2025, 5.100% Second Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 900 | |
Debt instrument interest rate (in percentage) | 5.10% | |
Unamortized discount | $ 0.8 | |
Senior Notes | Senior Notes Due June 25, 2026, 5.150% Third Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,500 | |
Debt instrument interest rate (in percentage) | 5.15% | |
Unamortized discount | $ 1.7 | |
Senior Notes | Senior Notes Due June 25, 2027, 4.875% Fourth Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,000 | |
Debt instrument interest rate (in percentage) | 4.875% | |
Unamortized discount | $ 3.3 | |
Senior Notes | Senior Notes Due June 25, 2029 , 4.750% Fifth Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,250 | |
Debt instrument interest rate (in percentage) | 4.75% | |
Unamortized discount | $ 8.1 | |
Senior Notes | Senior Notes Due June 25, 2031, 4.850% Sixth Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,000 | |
Debt instrument interest rate (in percentage) | 4.85% | |
Unamortized discount | $ 7.1 | |
Senior Notes | Senior Notes Due June 25, 2034, 4.950% Seventh Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,750 | |
Debt instrument interest rate (in percentage) | 4.95% | |
Unamortized discount | $ 16.7 | |
Senior Notes | Senior Notes Due June 25, 2054, 5.300% Eighth Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,500 | |
Debt instrument interest rate (in percentage) | 5.30% | |
Unamortized discount | $ 23.5 | |
Senior Notes | Senior Notes Due June 25, 2064, 5.400% Ninth Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 500 | |
Debt instrument interest rate (in percentage) | 5.40% | |
Unamortized discount | $ 8.5 | |
Senior Notes | June 2024 Issuance | ||
Debt Instrument [Line Items] | ||
Issuance costs | $ 41 | |
Senior Notes | Senior Notes Due February 2024, 3.75% | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (in percentage) | 3.75% | |
Repayments of debt | $ 1,100 | |
Senior Notes | 2025 and 2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price (in percentage) | 100% | |
Debt instrument change of control redemption price (in percentage) | 101% |
DEBT AND DERIVATIVE INSTRUMEN_4
DEBT AND DERIVATIVE INSTRUMENTS - Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Jan. 28, 2024 |
Derivative [Line Items] | ||
Cash collateral received | $ 686 | $ 714 |
Interest Rate Swap | Fair Value Hedging | ||
Derivative [Line Items] | ||
Notional amount | 5,400 | 5,400 |
Fair value agreements | $ 796 | $ 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 | 6 Months Ended | |||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | Jan. 28, 2024 | |
Common stock: | |||||
Shares at beginning of period (in shares) | 1,798 | 1,795 | 1,796 | 1,794 | |
Shares issued under employee stock plans, net | 1 | 1 | 3 | 2 | |
Shares at end of period (in shares) | 1,799 | 1,796 | 1,799 | 1,796 | |
Treasury stock: | |||||
Shares at beginning of period (in shares) | (806) | (788) | (804) | (778) | |
Repurchases of common stock (in shares) | 0 | (7) | (2) | (17) | |
Shares at end of period (in shares) | (806) | (795) | (806) | (795) | |
Shares outstanding at end of period (in shares) | 993 | 1,001 | 993 | 1,001 | 992 |
Cash dividends per share (in dollars per share) | $ 2.25 | $ 2.09 | $ 4.50 | $ 4.18 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Billions | Jul. 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 | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Equity [Abstract] | ||||
Total number of shares repurchased | 0 | 7 | 2 | 17 |
Total cost of shares repurchased | $ (1) | |||
Total cost of shares repurchased | $ 2,017 | $ 599 | $ 5,045 |
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 | Jul. 28, 2024 | Jan. 28, 2024 |
Fair Value, Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||
Derivative agreements – assets | $ 0 | $ 0 |
Derivative agreements – liabilities | (796) | (859) |
Total | $ (796) | $ (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 | Jul. 28, 2024 | Jan. 28, 2024 |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items] | ||
Carrying value of senior notes | $ 49,709 | $ 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 | $ 46,879 | $ 38,495 |
WEIGHTED AVERAGE COMMON SHARE_2
WEIGHTED AVERAGE COMMON SHARES (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Reconciliation of Basic to Diluted Weighted Average Common Shares: | ||||
Basic weighted average common shares (in shares) | 990 | 1,000 | 989 | 1,005 |
Effect of potentially dilutive securities (in shares) | 2 | 3 | 3 | 3 |
Diluted weighted average common shares (in shares) | 992 | 1,003 | 992 | 1,008 |
Anti-dilutive securities excluded from diluted weighted average common shares (in shares) | 1 | 1 | 1 | 1 |
ACQUISITIONS - Schedule Of Purc
ACQUISITIONS - Schedule Of Purchase Price Included Forms Of Consideration (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 18, 2024 | Jul. 28, 2024 | Jul. 30, 2023 | |
Business Acquisition [Line Items] | |||
Fair value of common stock issued | $ 321 | $ 0 | |
SRS Acquisition | |||
Business Acquisition [Line Items] | |||
Total cash consideration | $ 17,720 | ||
Fair value of common stock issued | 321 | ||
Total preliminary purchase consideration | $ 18,041 |
ACQUISITIONS - Schedule of Busi
ACQUISITIONS - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Jun. 18, 2024 | Jan. 28, 2024 |
Business Acquisition [Line Items] | |||
Goodwill | $ 19,414 | $ 8,455 | |
SRS Acquisition | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 161 | ||
Receivables | 1,832 | ||
Merchandise inventories | 1,988 | ||
Property and equipment | 834 | ||
Goodwill | 10,967 | ||
Intangible assets | 5,750 | ||
Other current and non-current assets | 744 | ||
Total assets acquired | 22,276 | ||
Accounts payable | 1,791 | ||
Other current liabilities | 584 | ||
Deferred Tax Liabilities | 1,078 | ||
Other long-term liabilities | 782 | ||
Total liabilities assumed | $ 4,235 |
ACQUISITIONS - Schedule of Fini
ACQUISITIONS - Schedule of Finite-Lived Intangible Assets (Details) - SRS Acquisition $ in Millions | Jun. 18, 2024 USD ($) |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 5,750 |
Customer relationships | |
Business Acquisition [Line Items] | |
Weighted Average Useful Life (Years) | 20 years |
Preliminary Fair Value | $ 5,370 |
Trade names | |
Business Acquisition [Line Items] | |
Weighted Average Useful Life (Years) | 5 years |
Preliminary Fair Value | $ 380 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2024 | Jul. 28, 2024 | Jun. 18, 2024 | Jan. 28, 2024 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 19,414 | $ 19,414 | $ 8,455 | |
SRS Distribution Inc | ||||
Business Acquisition [Line Items] | ||||
Expected tax deductible amount of goodwill | $ 1,000 | |||
Net sales since acquisition | $ 1,300 | $ 1,300 |