The Home Depot, Inc. (HD) 10-K 25 Mar 10 2010 FY Annual report Financial data

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Millions, except Per Share data	12 Months Ended Jan. 31, 2010		12 Months Ended Feb. 01, 2009		12 Months Ended Feb. 03, 2008
NET SALES	$66,176	[1]	$71,288	[1]	$77,349	[1]
Cost of Sales	43,764	[1]	47,298	[1]	51,352	[1]
GROSS PROFIT	22,412	[1]	23,990	[1]	25,997	[1]
Operating Expenses:
Selling, General and Administrative	15,902	[1]	17,846	[1]	17,053	[1]
Depreciation and Amortization	1,707	[1]	1,785	[1]	1,702	[1]
Total Operating Expenses	17,609	[1]	19,631	[1]	18,755	[1]
OPERATING INCOME	4,803	[1]	4,359	[1]	7,242	[1]
Interest and Other (Income) Expense:
Interest and Investment Income	(18)	[1]	(18)	[1]	(74)	[1]
Interest Expense	676	[1]	624	[1]	696	[1]
Other	163	[1]	163	[1]	0	[1]
Interest and Other, net	821	[1]	769	[1]	622	[1]
EARNINGS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES	3,982	[1]	3,590	[1]	6,620	[1]
Provision for Income Taxes	1,362	[1]	1,278	[1]	2,410	[1]
EARNINGS FROM CONTINUING OPERATIONS	2,620	[1]	2,312	[1]	4,210	[1]
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX	41	[1]	(52)	[1]	185	[1]
NET EARNINGS	$2,661	[1]	$2,260	[1]	$4,395	[1]
Weighted Average Common Shares	1,683	[1]	1,682	[1]	1,849	[1]
BASIC EARNINGS PER SHARE FROM CONTINUING OPERATIONS	1.56	[1]	1.37	[1]	2.28	[1]
BASIC EARNINGS (LOSS) PER SHARE FROM DISCONTINUED OPERATIONS	0.02	[1]	-0.03	[1]	0.1	[1]
BASIC EARNINGS PER SHARE	1.58	[1]	1.34	[1]	2.38	[1]
Diluted Weighted Average Common Shares	1,692	[1]	1,686	[1]	1,856	[1]
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS	1.55	[1]	1.37	[1]	2.27	[1]
DILUTED EARNINGS (LOSS) PER SHARE FROM DISCONTINUED OPERATIONS	0.02	[1]	-0.03	[1]	0.1	[1]
DILUTED EARNINGS PER SHARE	1.57	[1]	1.34	[1]	2.37	[1]
[1]Fiscal years ended January 31, 2010 and February 1, 2009 include 52 weeks. Fiscal year ended February 3, 2008 includes 53 weeks.

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Jan. 31, 2010		Feb. 01, 2009
Current Assets:
Cash and Cash Equivalents	$1,421	[1]	$519	[1]
Short-Term Investments	6		6
Receivables, net	964		972
Merchandise Inventories	10,188		10,673
Other Current Assets	1,321		1,192
Total Current Assets	13,900		13,362
Property and Equipment, at cost:
Land	8,451		8,301
Buildings	17,391		16,961
Furniture, Fixtures and Equipment	9,091		8,741
Leasehold Improvements	1,383		1,359
Construction in Progress	525		625
Capital Leases	504		490
Property, Plant and Equipment, Gross, Total	37,345		36,477
Less Accumulated Depreciation and Amortization	11,795		10,243
Net Property and Equipment	25,550		26,234
Notes Receivable	33		36
Goodwill	1,171		1,134
Other Assets	223		398
Total Assets	40,877		41,164
Current Liabilities:
Accounts Payable	4,863		4,822
Accrued Salaries and Related Expenses	1,263		1,129
Sales Taxes Payable	362		337
Deferred Revenue	1,158		1,165
Income Taxes Payable	108		289
Current Installments of Long-Term Debt	1,020		1,767
Other Accrued Expenses	1,589		1,644
Total Current Liabilities	10,363		11,153
Long-Term Debt, excluding current installments	8,662		9,667
Other Long-Term Liabilities	2,140		2,198
Deferred Income Taxes	319		369
Total Liabilities	21,484		23,387
STOCKHOLDERS' EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.716 billion shares at January 31, 2010 and 1.707 billion shares at February 1, 2009; outstanding: 1.698 billion shares at January 31, 2010 and 1.696 billion shares at February 1, 2009	86		85
Paid-In Capital	6,304		6,048
Retained Earnings	13,226		12,093
Accumulated Other Comprehensive Income (Loss)	362		(77)
Treasury Stock, at cost, 18 million shares at January 31, 2010 and 11 million shares at February 1, 2009	(585)		(372)
Total Stockholders' Equity	19,393		17,777
Total Liabilities and Stockholders' Equity	$40,877		$41,164
[1]Fiscal years ended January 31, 2010 and February 1, 2009 include 52 weeks. Fiscal year ended February 3, 2008 includes 53 weeks.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
	Jan. 31, 2010	Feb. 01, 2009
Common Stock, par value	0.05	0.05
Common Stock, authorized	10,000,000,000	10,000,000,000
Common Stock, issued	1,716,000,000	1,707,000,000
Common Stock, outstanding	1,698,000,000	1,696,000,000
Treasury Stock, shares	18,000,000	11,000,000

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock	Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total Comprehensive Income	Total
BEGINNING BALANCE at Jan. 28, 2007	$121	$7,930	$33,052	$310	($16,383)		$25,030
BEGINNING BALANCE (in shares) at Jan. 28, 2007	2,421				(451)
Cumulative Effect of the Adoption of FIN 48			(111)				(111)
Net Earnings			4,395			4,395	4,395	[1]
Shares Issued Under Employee Stock Plans (in shares)	12
Shares Issued Under Employee Stock Plans	1	239					240
Tax Effect of Sale of Option Shares by Employees		4					4
Translation Adjustments				455		455	455
Cash Flow Hedges, net of tax				(10)		(10)	(10)
Stock Options, Awards and Amortization of Restricted Stock		206					206
Repurchase of Common Stock (in shares)					(292)
Repurchase of Common Stock					(10,815)		(10,815)
Retirement of Treasury Stock (in shares)	(735)				735
Retirement of Treasury Stock	(37)	(2,608)	(24,239)		26,884		0
Cash Dividends ($0.90 per share in 2009, $0.90 per share in 2008 and $0.90 in per share 2007)			(1,709)				(1,709)
Other		29					29
Comprehensive Income						4,840
ENDING BALANCE (in shares) at Feb. 03, 2008	1,698				(8)
ENDING BALANCE at Feb. 03, 2008	85	5,800	11,388	755	(314)		17,714
Net Earnings			2,260			2,260	2,260	[1]
Shares Issued Under Employee Stock Plans (in shares)	9
Shares Issued Under Employee Stock Plans		68					68
Tax Effect of Sale of Option Shares by Employees		7					7
Translation Adjustments				(831)		(831)	(831)
Cash Flow Hedges, net of tax				(1)		(1)	(1)
Stock Options, Awards and Amortization of Restricted Stock		176					176
Repurchase of Common Stock (in shares)					(3)
Repurchase of Common Stock					(70)		(70)
Cash Dividends ($0.90 per share in 2009, $0.90 per share in 2008 and $0.90 in per share 2007)			(1,521)				(1,521)
Other		(3)	(34)		12		(25)
Comprehensive Income						1,428
ENDING BALANCE (in shares) at Feb. 01, 2009	1,707				(11)
ENDING BALANCE at Feb. 01, 2009	85	6,048	12,093	(77)	(372)		17,777
Net Earnings			2,661			2,661	2,661	[1]
Shares Issued Under Employee Stock Plans (in shares)	9
Shares Issued Under Employee Stock Plans	1	57					58
Tax Effect of Sale of Option Shares by Employees		(2)					(2)
Translation Adjustments				426		426	426
Cash Flow Hedges, net of tax				11		11	11
Stock Options, Awards and Amortization of Restricted Stock		201					201
Repurchase of Common Stock (in shares)					(7)
Repurchase of Common Stock					(213)		(213)
Cash Dividends ($0.90 per share in 2009, $0.90 per share in 2008 and $0.90 in per share 2007)			(1,525)				(1,525)
Other			(3)	2		2	(1)
Comprehensive Income						3,100
ENDING BALANCE (in shares) at Jan. 31, 2010	1,716				(18)
ENDING BALANCE at Jan. 31, 2010	$86	$6,304	$13,226	$362	($585)		$19,393
[1]Fiscal years ended January 31, 2010 and February 1, 2009 include 52 weeks. Fiscal year ended February 3, 2008 includes 53 weeks.

1_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
	12 Months Ended Jan. 31, 2010	12 Months Ended Feb. 01, 2009	12 Months Ended Feb. 03, 2008
Cash Dividends, per share	0.9	0.9	0.9

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Jan. 31, 2010		12 Months Ended Feb. 01, 2009		12 Months Ended Feb. 03, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings	$2,661	[1]	$2,260	[1]	$4,395	[1]
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities:
Depreciation and Amortization	1,806	[1]	1,902	[1]	1,906	[1]
Impairment Related to Rationalization Charges	0	[1]	580	[1]	0	[1]
Impairment of Investment	163	[1]	163	[1]	0	[1]
Stock-Based Compensation Expense	201	[1]	176	[1]	207	[1]
Changes in Assets and Liabilities, net of the effects of acquisitions and disposition:
(Increase) Decrease in Receivables, net	(23)	[1]	121	[1]	116	[1]
Decrease (Increase) in Merchandise Inventories	625	[1]	743	[1]	(491)	[1]
Decrease (Increase) in Other Current Assets	4	[1]	(7)	[1]	109	[1]
Increase (Decrease) in Accounts Payable and Accrued Expenses	59	[1]	(646)	[1]	(465)	[1]
Decrease in Deferred Revenue	(21)	[1]	(292)	[1]	(159)	[1]
(Decrease) Increase in Income Taxes Payable	(174)	[1]	262	[1]	0	[1]
Decrease in Deferred Income Taxes	(227)	[1]	(282)	[1]	(348)	[1]
(Decrease) Increase in Other Long-Term Liabilities	(19)	[1]	306	[1]	186	[1]
Other	70	[1]	242	[1]	271	[1]
Net Cash Provided by Operating Activities	5,125	[1]	5,528	[1]	5,727	[1]
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures, net of $10, $37 and $19 of non-cash capital expenditures in fiscal 2009, 2008 and 2007, respectively	(966)	[1]	(1,847)	[1]	(3,558)	[1]
Proceeds from Sale of Business, net	0	[1]	0	[1]	8,337	[1]
Payments for Businesses Acquired, net	0	[1]	0	[1]	(13)	[1]
Proceeds from Sales of Property and Equipment	178	[1]	147	[1]	318	[1]
Purchases of Investments	0	[1]	(168)	[1]	(11,225)	[1]
Proceeds from Sales and Maturities of Investments	33	[1]	139	[1]	10,899	[1]
Net Cash (Used in) Provided by Investing Activities	(755)	[1]	(1,729)	[1]	4,758	[1]
CASH FLOWS FROM FINANCING ACTIVITIES:
(Repayments of) Proceeds from Short-Term Borrowings, net	0	[1]	(1,732)	[1]	1,734	[1]
Repayments of Long-Term Debt	(1,774)	[1]	(313)	[1]	(20)	[1]
Repurchases of Common Stock	(213)	[1]	(70)	[1]	(10,815)	[1]
Proceeds from Sales of Common Stock	73	[1]	84	[1]	276	[1]
Cash Dividends Paid to Stockholders	(1,525)	[1]	(1,521)	[1]	(1,709)	[1]
Other Financing Activities	(64)	[1]	(128)	[1]	(105)	[1]
Net Cash Used in Financing Activities	(3,503)	[1]	(3,680)	[1]	(10,639)	[1]
Increase (Decrease) in Cash and Cash Equivalents	867	[1]	119	[1]	(154)	[1]
Effect of Exchange Rate Changes on Cash and Cash Equivalents	35	[1]	(45)	[1]	(1)	[1]
Cash and Cash Equivalents at Beginning of Year	519	[1]	445	[1]	600	[1]
Cash and Cash Equivalents at End of Year	1,421	[1]	519	[1]	445	[1]
SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR:
Interest, net of interest capitalized	664	[1]	622	[1]	672	[1]
Income Taxes	$2,082	[1]	$1,265	[1]	$2,524	[1]
[1]Fiscal years ended January 31, 2010 and February 1, 2009 include 52 weeks. Fiscal year ended February 3, 2008 includes 53 weeks.

2_Consolidated Statements of Ca

Consolidated Statements of Cash Flows (Parenthetical) (USD $)
In Millions	12 Months Ended Jan. 31, 2010		12 Months Ended Feb. 01, 2009		12 Months Ended Feb. 03, 2008
Capital Expenditures, non-cash capital expenditures	$10	[1]	$37	[1]	$19	[1]
[1]Fiscal years ended January 31, 2010 and February 1, 2009 include 52 weeks. Fiscal year ended February 3, 2008 includes 53 weeks.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Jan. 31, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business, Consolidation and Presentation The Home Depot, Inc. and its subsidiaries (the Company) operate The Home Depot stores, which are full-service, warehouse-style stores averaging approximately 105,000square feet in size. The stores stock approximately 30,000 to 40,000 different kinds of building materials, home improvement supplies and lawn and garden products that are sold to do-it-yourself customers, do-it-for-me customers and professional customers. At the end of fiscal 2009, the Company was operating 2,244 stores, which included 1,976 The Home Depot stores in the United States, including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam (U.S.), 179 The Home Depot stores in Canada, 79 The Home Depot stores in Mexico and 10 The Home Depot stores in China. The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Fiscal Year The Companys fiscal year is a 52- or 53-week period ending on the Sunday nearest to January31. Fiscal years ended January31, 2010 (fiscal 2009) and February1, 2009 (fiscal 2008) include 52weeks. The fiscal year ended February3, 2008 (fiscal 2007) includes 53weeks. Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities, and reported amounts of revenues and expenses in preparing these financial statements in conformity with U.S. generally accepted accounting principles.Actual results could differ from these estimates. Fair Value of Financial Instruments The carrying amounts of Cash and Cash Equivalents, Receivables and Accounts Payable approximate fair value due to the short-term maturities of these financial instruments. The fair value of the Companys investments is discussed under the caption Short-Term Investments in this Note1. The fair value of the Companys Long-Term Debt is discussed in Note11. Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Companys Cash Equivalents are carried at fair market value and consist primarily of high-grade commercial paper, money market funds and U.S.government agency securities. Short-Term Investments Short-Term Investments are recorded at fair value based on current market rates and are classified as available-for-sale. Accounts Receivable The Company has an agreement with a third-party service provider who directly extends credit to customers, manages the Companys private label credit card program and owns the related receivables. We evaluated the third-party entities holding the receivables under the program and concluded that they should not be consolidated by the Company. The agreement with the third-party service provider expires in 2018, with the Company having the option, but no obligation, to purchase the receivables at the end of the agreement. The deferred interest charges incurred

RATIONALIZATION CHARGES

RATIONALIZATION CHARGES
	12 Months Ended Jan. 31, 2010
RATIONALIZATION CHARGES	2. RATIONALIZATION CHARGES In fiscal 2008, the Company reduced its square footage growth plans to improve free cash flow, provide stronger returns for the Company and invest in its existing stores to continue improving the customer experience. As a result of this store rationalization plan, the Company determined that it would no longer pursue the opening of approximately 50 U.S.stores that had been in its new store pipeline. The Company expects to dispose of or sublet these pipeline locations over varying periods. The Company also closed 15 underperforming U.S.stores in the second quarter of fiscal 2008, and the Company expects to dispose of or sublet those locations over varying periods. Also in fiscal 2008, the Company announced that it would exit its EXPO, THD Design Center, Yardbirds and HD Bath businesses (the Exited Businesses) in order to focus on its core The Home Depot stores. The Company closed the Exited Businesses in the first quarter of fiscal 2009 and expects to dispose of or sublet those locations over varying periods. These steps impacted approximately 5,000 associates in those locations, their support functions and their distribution centers. Finally, in January 2009 the Company restructured its support functions to better align the Companys cost structure. These actions impacted approximately 2,000 associates. The Company recognized $146 million and $951million in total pretax charges for fiscal 2009 and 2008, respectively, related to these actions (collectively, the Rationalization Charges). The significant components of the total expected charges and charges incurred to date are as follows (amounts in millions): Total Expected Charges Fiscal 2008 Charges Fiscal 2009 Charges Estimated Remaining Charges Asset impairments $ 580 $ 580 $ $ Lease obligation costs, net 336 252 84 Severance 86 78 8 Other 95 41 54 Total $ 1,097 $ 951 $ 146 $ Inventory markdown costs reflected in Other are included in Cost of Sales in the accompanying Consolidated Statements of Earnings, and costs related to asset impairments, lease obligations, severance and other miscellaneous costs are included in SGA expenses. Asset impairment charges, including contractual costs to complete certain assets, were determined based on fair market value using market data for each individual property. Lease obligation costs represent the present value of contractually obligated rental payments offset by estimated sublet income, including estimates of the time required to sublease the locations. The payments related to the leased locations therefore are not generally incremental uses of cash. Activity related to Rationalization Charges for fiscal 2009 and 2008 was as follows (amounts in millions): Fiscal 2008 Charges Cash Uses Non-cash Uses Accrued Balance February1, 2009 Fiscal 2009 Charges Cash Uses Non-cash Uses Accrued Balance January31, 2010 Asset impairments $ 580 $ $ 542 $ 38 $ $ $ 15

CHANGE IN ACCOUNTING PRINCIPLE

CHANGE IN ACCOUNTING PRINCIPLE
	12 Months Ended Jan. 31, 2010
CHANGE IN ACCOUNTING PRINCIPLE	3. CHANGE IN ACCOUNTING PRINCIPLE During fiscal 2008, the Company implemented a new enterprise resource planning (ERP) system, including a new inventory system, for its retail operations in Canada. Along with this implementation, the Company changed its method of accounting for Merchandise Inventories for its retail operations in Canada from the lower of cost (first-in, first-out) or market, as determined by the retail inventory method, to the lower of cost or market using a weighted-average cost method. As of the end of fiscal 2008, the implementation of the new inventory system and related conversion to the weighted-average cost method for Canadian retail operations was complete. The new ERP system allows the Company to utilize the weighted-average cost method, which the Company believes will result in greater precision in the costing of inventories and a better matching of cost of sales with revenue generated. The effect of the change on the Merchandise Inventories and Retained Earnings balances was not material. Prior to the inventory system conversion, the Company could not determine the impact of the change to the weighted-average cost method, and therefore, could not retroactively apply the change to periods prior to fiscal 2008.

DISPOSITION AND ACQUISITIONS

DISPOSITION AND ACQUISITIONS
	12 Months Ended Jan. 31, 2010
DISPOSITION AND ACQUISITIONS	4. DISPOSITION AND ACQUISITIONS On August30, 2007, the Company closed the sale of HD Supply. The Company received $8.3billion of net proceeds for the sale of HD Supply and recognized a $4million loss, net of tax, in fiscal 2007. Settlement of working capital matters arising from the sale of HD Supply resulted in earnings from discontinued operations of $41 million, net of tax, in fiscal 2009 and a loss from discontinued operations of $52 million, net of tax, in fiscal 2008. In connection with the sale, the Company purchased a 12.5% equity interest in the newly formed HD Supply for $325million. In fiscal 2008, the Company determined its 12.5% equity interest in HD Supply was impaired and recorded a $163million charge to write-down the investment. In fiscal 2009, the Company determined its equity interest in HD Supply was further impaired and recorded an additional charge of $163 million to write-down the remaining investment. These charges are included in Interest and Other, net, in the accompanying Consolidated Statements of Earnings. Also in connection with the sale, the Company guaranteed a $1.0billion senior secured amortizing term loan (guaranteed loan) of HD Supply. The fair value of the guarantee, which was determined to be approximately $16million, is recorded as a liability of the Company and included in Other Long-Term Liabilities. The Company is responsible for up to $1.0billion and any unpaid interest in the event of nonpayment by HD Supply. The guaranteed loan is collateralized by certain assets of HD Supply. The original expiration date of the guarantee was August 30, 2012. On March 19, 2010, the Company amended the expiration date and extended it to April 1, 2014. In accordance with FASB ASC 360-10, the Company reclassified the results of HD Supply as discontinued operations in its Consolidated Statements of Earnings for all periods presented. The following table presents Net Sales and Earnings of HD Supply through August30, 2007 and the gains and losses on disposition which have been classified as discontinued operations in the Consolidated Statements of Earnings for fiscal 2009, 2008 and 2007 (amounts in millions): Fiscal Year Ended January31, 2010 February1, 2009 February3, 2008 Net Sales $ $ $ 7,391 Earnings Before Provision for Income Taxes $ $ $ 291 Provision for Income Taxes (102 ) Gain (Loss) from Discontinued Operations, net 41 (52 ) (4 ) Earnings (Loss) from Discontinued Operations, net of tax $ 41 $ (52 ) $ 185 The Company made no acquisitions during fiscal 2009 and 2008. The aggregate purchase price for acquisitions in fiscal 2007 was $25million. The Company recorded Goodwill related to the HD Supply businesses of $20million for fiscal 2007 and recorded no Goodwill related to its retail businesses for fiscal 2009, 2008 and 2007.

DEBT

DEBT
	12 Months Ended Jan. 31, 2010
DEBT	5. DEBT The Company has commercial paper programs that allow for borrowings up to $3.25billion. All of the Companys short-term borrowings in fiscal 2009 and 2008 were under these commercial paper programs. In connection with the commercial paper programs, the Company has a back-up credit facility with a consortium of banks for borrowings up to $3.25billion. The credit facility expires in December 2010 and contains various restrictive covenants. At January31, 2010, the Company was in compliance with all of the covenants, and they are not expected to impact the Companys liquidity or capital resources. Short-Term Debt under the commercial paper programs was as follows (dollars in millions): January31, 2010 February1, 2009 Balance outstanding at fiscal year-end $ $ Maximum amount outstanding at any month-end $ 190 $ 1,771 Average daily short-term borrowings $ 55 $ 403 Weighted average interest rate 1.1 % 3.4 % The Companys Long-Term Debt at the end of fiscal 2009 and 2008 consisted of the following (amounts in millions): January31, 2010 February1, 2009 3.75%Senior Notes; due September15, 2009; interest payable semi-annually on March15 and September15 $ $999 Floating Rate Senior Notes; due December16, 2009; interest payable on March16, June16, September16 and December16 750 4.625%Senior Notes; due August15, 2010; interest payable semi-annually on February15 and August15 999 998 5.20%Senior Notes; due March1, 2011; interest payable semi-annually on March1 and September1 1,000 1,000 5.25%Senior Notes; due December16, 2013; interest payable semi-annually on June16 and December16 1,258 1,245 5.40%Senior Notes; due March1, 2016; interest payable semi-annually on March1 and September1 3,040 3,047 5.875%Senior Notes; due December16, 2036; interest payable semi-annually on June16 and December16 2,960 2,959 Capital Lease Obligations; payable in varying installments through January31, 2055 408 417 Other 17 19 Total debt 9,682 11,434 Less current installments 1,020 1,767 Long-Term Debt, excluding current installments $ 8,662 $ 9,667 At January31, 2010, the Company had outstanding interest rate swaps, accounted for as fair value hedges, that expire on December16, 2013 with a notional amount of $1.25billion that swap fixed rate interest on the Companys $1.25billion 5.25% Senior Notes for variable interest equal to LIBOR plus 259 basis points. At January31, 2010, the approximate fair value of these agreements was an asset of $12million, which is the estimated amount the Company would have received to settle the agreements. In November 2009, the Company entered into a forward starting interest rate swap agreement with a notional amount of $500 million, accounted for as a cash flow hedge, to hedge interest rate fluctuations in anticipation of issuing long-term debt to refinance debt maturing in fiscal 2010. At January31, 2010, the approximate

INCOME TAXES

INCOME TAXES
	12 Months Ended Jan. 31, 2010
INCOME TAXES	6. INCOME TAXES The components of Earnings from Continuing Operations before Provision for Income Taxes for fiscal 2009, 2008 and 2007 were as follows (amounts in millions): Fiscal Year Ended January31, 2010 February1, 2009 February3, 2008 United States $ 3,586 $ 3,136 $ 5,905 Foreign 396 454 715 Total $ 3,982 $ 3,590 $ 6,620 The Provision for Income Taxes consisted of the following (amounts in millions): Fiscal Year Ended January31, 2010 February1, 2009 February3, 2008 Current: Federal $ 1,157 $ 1,283 $ 2,055 State 184 198 285 Foreign 195 85 310 1,536 1,566 2,650 Deferred: Federal (121 ) (209 ) (242 ) State (24 ) (56 ) 17 Foreign (29 ) (23 ) (15 ) (174 ) (288 ) (240 ) Total $ 1,362 $ 1,278 $ 2,410 The Companys combined federal, state and foreign effective tax rates for fiscal 2009, 2008 and 2007, net of offsets generated by federal, state and foreign tax benefits, were approximately 34.2%, 35.6% and 36.4%, respectively. The reconciliation of the Provision for Income Taxes at the federal statutory rate of 35% to the actual tax expense for the applicable fiscal years was as follows (amounts in millions): Fiscal Year Ended January31, 2010 February1, 2009 February3, 2008 Income taxes at federal statutory rate $ 1,394 $ 1,257 $ 2,317 State income taxes, net of federal income tax benefit 104 92 196 Other, net (136 ) (71 ) (103 ) Total $ 1,362 $ 1,278 $ 2,410 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of January31, 2010 and February1, 2009, were as follows (amounts in millions): January31, 2010 February1, 2009 Current: Deferred Tax Assets: Property and equipment $ 85 $ 85 Accrued self-insurance liabilities 109 143 Other accrued liabilities 303 204 Deferred compensation 372 286 Current Deferred Tax Assets 869 718 Deferred Tax Liabilities: Accelerated inventory deduction (114 ) (114 ) Other (114 ) (118 ) Current Deferred Tax Liabilities (228 ) (232 ) Current Deferred Tax Assets, net 641 486 Noncurrent: Deferred Tax Assets: Accrued self-insurance liabilities 338 317 State income taxes 123 118 Capital loss carryover 86 65 Net operating losses 74 71 Foreign tax credit ca

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS
	12 Months Ended Jan. 31, 2010
EMPLOYEE STOCK PLANS	7. EMPLOYEE STOCK PLANS The Home Depot, Inc. 2005 Omnibus Stock Incentive Plan (2005 Plan) and The Home Depot, Inc. 1997 Omnibus Stock Incentive Plan (1997 Plan and collectively with the 2005 Plan, the Plans) provide that incentive and non-qualified stock options, stock appreciation rights, restricted shares, performance shares, performance units and deferred shares may be issued to selected associates, officers and directors of the Company. Under the 2005 Plan, the maximum number of shares of the Companys common stock authorized for issuance is 255million shares, with any award other than a stock option reducing the number of shares available for issuance by 2.11shares. As of January31, 2010, there were 188million shares available for future grants under the 2005 Plan. No additional equity awards may be issued from the 1997 Plan after the adoption of the 2005 Plan on May26, 2005. Under the terms of the Plans, incentive stock options and non-qualified stock options must have an exercise price at or above the fair market value of the Companys stock on the date of the grant. Typically, incentive stock options and non-qualified stock options vest at the rate of 25%per year commencing on the first or second anniversary date of the grant and expire on the tenth anniversary date of the grant. Certain of the non-qualified stock options also include performance options which vest on the later of the first anniversary date of the grant and the date the closing price of the Companys common stock has been 25% greater than the exercise price of the options for 30 consecutive trading days. Additionally, certain stock options may become non-forfeitable upon age 60, provided the associate has had five years of continuous service. The Company recognized $19million, $47million and $61million of stock-based compensation expense in fiscal 2009, 2008 and 2007, respectively, related to stock options. Restrictions on the restricted stock issued under the Plans generally lapse according to one of the following schedules: (1)the restrictions on the restricted stock lapse over various periods up to five years, (2)the restrictions on 25% of the restricted stock lapse upon the third and sixth anniversaries of the date of issuance with the remaining 50% of the restricted stock lapsing upon the associates attainment of age62, or (3)the restrictions on 25% of the restricted stock lapse upon the third and sixth anniversaries of the date of issuance with the remaining 50% of the restricted stock lapsing upon the earlier of the associates attainment of age60 or the tenth anniversary date. The Company has also granted performance shares under the Plans, the payout of which is dependent on either (1)the Companys total shareholder return percentile ranking compared to the performance of individual companies included in the SP 500 index at the end of the three-year performance cycle, or (2)the Companys performance against target average return on invested capital and operating profit over a three-year performance cycle. Additionally, certain awards may become non-forfeitable upon the attainment of age60, provided the associate has had five years of continuous servic

LEASES

LEASES
	12 Months Ended Jan. 31, 2010
LEASES	8. LEASES The Company leases certain retail locations, office space, warehouse and distribution space, equipment and vehicles. While most of the leases are operating leases, certain locations and equipment are leased under capital leases. As leases expire, it can be expected that, in the normal course of business, certain leases will be renewed or replaced. Certain lease agreements include escalating rents over the lease terms. The Company expenses rent on a straight-line basis over the lease term which commences on the date the Company has the right to control the property. The cumulative expense recognized on a straight-line basis in excess of the cumulative payments is included in Other Accrued Expenses and Other Long-Term Liabilities in the accompanying Consolidated Balance Sheets. Total rent expense, net of minor sublease income for fiscal 2009, 2008 and 2007 was $823million, $846million and $824million, respectively. Certain store leases also provide for contingent rent payments based on percentages of sales in excess of specified minimums. Contingent rent expense for fiscal 2009, 2008 and 2007 was approximately $4million, $5million and $6million, respectively. Real estate taxes, insurance, maintenance and operating expenses applicable to the leased property are obligations of the Company under the lease agreements. The approximate future minimum lease payments under capital and all other leases at January31, 2010 were as follows (in millions): Fiscal Year Capital Leases Operating Leases 2010 $ 90 $ 802 2011 90 717 2012 90 640 2013 89 584 2014 88 535 Thereafter through 2097 795 5,258 1,242 $ 8,536 Less imputed interest 834 Net present value of capital lease obligations 408 Less current installments 19 Long-term capital lease obligations, excluding current installments $ 389 Short-term and long-term obligations for capital leases are included in the accompanying Consolidated Balance Sheets in Current Installments of Long-Term Debt and Long-Term Debt, respectively. The assets under capital leases recorded in Property and Equipment, net of amortization, totaled $299million and $309million at January31, 2010 and February1, 2009, respectively.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS
	12 Months Ended Jan. 31, 2010
EMPLOYEE BENEFIT PLANS	9. EMPLOYEE BENEFIT PLANS The Company maintains active defined contribution retirement plans for its employees (the Benefit Plans). All associates satisfying certain service requirements are eligible to participate in the Benefit Plans. The Company makes cash contributions each payroll period up to specified percentages of associates contributions as approved by the Board of Directors. The Company also maintains a restoration plan to provide certain associates deferred compensation that they would have received under the Benefit Plans as a matching contribution if not for the maximum compensation limits under the Internal Revenue Code. The Company funds the restoration plan through contributions made to a grantor trust, which are then used to purchase shares of the Companys common stock in the open market. The Companys contributions to the Benefit Plans and the restoration plan were $161million, $158million and $152million for fiscal 2009, 2008 and 2007, respectively. At January31, 2010, the Benefit Plans and the restoration plan held a total of 18million shares of the Companys common stock in trust for plan participants.

BASIC AND DILUTED WEIGHTED AVER

BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES
	12 Months Ended Jan. 31, 2010
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES	10. BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES The reconciliation of basic to diluted weighted average common shares for fiscal 2009, 2008 and 2007 is as follows (amounts in millions): Fiscal Year Ended January31, 2010 February1, 2009 February3, 2008 Weighted average common shares 1,683 1,682 1,849 Effect of potentially dilutive securities: Stock Plans 9 4 7 Diluted weighted average common shares 1,692 1,686 1,856 Stock plans include shares granted under the Companys employee stock plans as described in Note7 to the Consolidated Financial Statements. Options to purchase 48million, 52million and 43million shares of common stock at January31, 2010,February1, 2009 and February3, 2008, respectively, were excluded from the computation of Diluted Earnings per Share because their effect would have been anti-dilutive.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	12 Months Ended Jan. 31, 2010
FAIR VALUE MEASUREMENTS	11. 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 liabilitys fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not 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. These tiers include: Level1 Observable inputs that reflect quoted prices in active markets Level2 Inputs other than quoted prices in active markets that are either directly or indirectly observable Level3 Unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions Assets and Liabilities Measured at Fair Value on a Recurring Basis The assets and liabilities that are measured at fair value on a recurring basis as of January31, 2010 are as follows (in millions): FairValueatReportingDateUsing Level1 Level2 Level3 Available-for-sale securities $ 6 $ $ Derivative agreements - assets 15 Derivative agreements - liabilities (4 ) Total $ 6 $ 11 $ The Companys available-for-sale securities are discussed further under the caption Short-Term Investments in Note1. The Companys derivative agreements are discussed further in Note5. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The assets and liabilities that are measured at fair value on a nonrecurring basis as of January31, 2010 are as follows (in millions): FairValue Level 3 Fiscal2009 Gains(Losses) HD Supply investment $ $ (163 ) Store Rationalization - lease obligation costs, net (191 ) (84 ) Total $ (191 ) $ (247 ) During fiscal 2009, the Company impaired the remaining value of its investment in HD Supply using fair value measurements with unobservable inputs (level 3), as further discussed in Note 4. Additionally, lease obligation costs included in the Companys Rationalization Charges were measured on a nonrecurring basis using fair value measurements with unobservable inputs (level 3), as further discussed in Note 2. Long-lived assets and goodwill and other intangible assets were also analyzed for impairment on a nonrecurring basis using fair value measurements with unobservable inputs (level 3). The Company did not record any impairment charges related to goodwill and other intangible assets in fiscal 2009 as further discussed in Note 1 under the caption Goodwill and Other Intangible Assets. Impairment charges related to long-lived assets in fiscal 2009 were not material, as further discussed in Note 1 under the caption Impairment of Long-Lived Assets. The aggregate fair value of the Companys Senior Notes, based on quoted market prices (level 1), was $9.5 billion at Janu

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Jan. 31, 2010
COMMITMENTS AND CONTINGENCIES	12. COMMITMENTS AND CONTINGENCIES At January31, 2010, the Company was contingently liable for approximately $434million under outstanding letters of credit and open accounts issued for certain business transactions, including insurance programs, trade contracts and construction contracts. The Companys letters of credit are primarily performance-based and are not based on changes in variable components, a liability or an equity security of the other party. On January27, 2010, the Superior Court of the County of Los Angeles in California approved the Companys settlement with the plaintiffs in five lawsuits containing multiple class-action allegations that the Company failed to provide meal breaks. The complaints were filed by current and former hourly associates from the first quarter of 2004 through the fourth quarter of 2008. The disposition of this matter is now complete. As previously disclosed, the Company established a reserve for this settlement in the fourth quarter of fiscal 2008. The settlement did not have a material effect on the Companys consolidated financial condition or results of operations.

QUARTERLY FINANCIAL DATA

QUARTERLY FINANCIAL DATA (UNAUDITED)
	12 Months Ended Jan. 31, 2010
QUARTERLY FINANCIAL DATA (UNAUDITED)	13. QUARTERLY FINANCIAL DATA (UNAUDITED) The following is a summary of the quarterly consolidated results of operations from continuing operations for the fiscal years ended January31, 2010 and February1, 2009 (dollars in millions, except per share data): Net Sales Gross Profit Earnings(Loss) from Continuing Operations Basic Earningsper Share from Continuing Operations Diluted Earningsper Share from Continuing Operations Fiscal Year Ended January 31, 2010: First Quarter $ 16,175 $ 5,450 $ 514 $ 0.31 $ 0.30 Second Quarter 19,071 6,388 1,116 0.66 0.66 Third Quarter 16,361 5,561 689 0.41 0.41 Fourth Quarter 14,569 5,013 301 0.18 0.18 Fiscal Year $ 66,176 $ 22,412 $ 2,620 $ 1.56 $ 1.55 Fiscal Year Ended February 1, 2009: First Quarter $ 17,907 $ 6,072 $ 356 $ 0.21 $ 0.21 Second Quarter 20,990 6,964 1,202 0.72 0.71 Third Quarter 17,784 5,994 756 0.45 0.45 Fourth Quarter 14,607 4,960 (2 ) 0.00 0.00 Fiscal Year $ 71,288 $ 23,990 $ 2,312 $ 1.37 $ 1.37 Note: The quarterly data may not sum to fiscal year totals.

Document Information

Document Information
	12 Months Ended Jan. 31, 2010
Document Type	10-K
Amendment Flag	false
Document Period End Date	2010-01-31

Entity Information

Entity Information (USD $)
	12 Months Ended Jan. 31, 2010	Mar. 22, 2010	Aug. 03, 2009
Trading Symbol	HD
Entity Registrant Name	HOME DEPOT INC
Entity Central Index Key	0000354950
Current Fiscal Year End Date	--01-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,693,341,736
Entity Public Float			$43,900,000,000