Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 29, 2018 | May 15, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 29, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | HOME DEPOT INC | |
Entity Central Index Key | 354,950 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,153,543,611 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 29, 2018 | Jan. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 3,599 | $ 3,595 |
Receivables, net | 2,296 | 1,952 |
Merchandise inventories | 14,432 | 12,748 |
Other current assets | 887 | 638 |
Total current assets | 21,214 | 18,933 |
Property and equipment, net of accumulated depreciation of $19,668 at April 29, 2018 and $19,339 at January 28, 2018 | 21,928 | 22,075 |
Goodwill | 2,281 | 2,275 |
Other assets | 1,227 | 1,246 |
Total assets | 46,650 | 44,529 |
Current liabilities: | ||
Short-term debt | 350 | 1,559 |
Accounts payable | 9,726 | 7,244 |
Accrued salaries and related expenses | 1,413 | 1,640 |
Sales taxes payable | 730 | 520 |
Deferred revenue | 1,911 | 1,805 |
Current installments of long-term debt | 1,199 | 1,202 |
Other accrued expenses | 2,804 | 2,224 |
Total current liabilities | 18,133 | 16,194 |
Long-term debt, excluding current installments | 24,244 | 24,267 |
Other long-term liabilities | 2,586 | 2,614 |
Total liabilities | 44,963 | 43,075 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,781 shares at April 29, 2018 and 1,780 shares at January 28, 2018 | 89 | 89 |
Paid-in capital | 10,017 | 10,192 |
Retained earnings | 41,221 | 39,935 |
Accumulated other comprehensive loss | (596) | (566) |
Treasury stock, at cost, 627 shares at April 29, 2018 and 622 shares at January 28, 2018 | (49,044) | (48,196) |
Total stockholders’ equity | 1,687 | 1,454 |
Total liabilities and stockholders’ equity | $ 46,650 | $ 44,529 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Apr. 29, 2018 | Jan. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 19,668 | $ 19,339 |
Common Stock, par value | $ 0.05 | $ 0.05 |
Common Stock, shares authorized | 10,000 | 10,000 |
Common Stock, shares issued | 1,781 | 1,780 |
Common Stock, shares outstanding | 1,154 | 1,158 |
Treasury Stock, shares | 627 | 622 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 24,947 | $ 23,887 |
Cost of sales | 16,330 | 15,733 |
Gross profit | 8,617 | 8,154 |
Operating expenses: | ||
Selling, general and administrative | 4,779 | 4,361 |
Depreciation and amortization | 457 | 444 |
Total operating expenses | 5,236 | 4,805 |
Operating income | 3,381 | 3,349 |
Interest and other (income) expense: | ||
Interest and investment income | (22) | (13) |
Interest expense | 261 | 254 |
Interest and other, net | 239 | 241 |
Earnings before provision for income taxes | 3,142 | 3,108 |
Provision for income taxes | 738 | 1,094 |
Net earnings | $ 2,404 | $ 2,014 |
Basic weighted average common shares | 1,152 | 1,198 |
Basic earnings per share | $ 2.09 | $ 1.68 |
Diluted weighted average common shares | 1,158 | 1,204 |
Diluted earnings per share | $ 2.08 | $ 1.67 |
Dividends declared per share | $ 1.03 | $ 0.89 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 2,404 | $ 2,014 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (76) | (30) |
Cash flow hedges, net of tax | 28 | (25) |
Other | 18 | (1) |
Total other comprehensive income (loss) | (30) | (56) |
Comprehensive income | $ 2,374 | $ 1,958 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net earnings | $ 2,404 | $ 2,014 |
Reconciliation of net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 532 | 505 |
Stock-based compensation expense | 84 | 81 |
Changes in assets and liabilities, net of acquisition effects: | ||
Receivables, net | (319) | (145) |
Merchandise inventories | (1,687) | (1,051) |
Other current assets | (250) | 51 |
Accounts payable and other accrued expenses | 2,532 | 2,062 |
Income taxes payable | 547 | 877 |
Deferred revenue | 208 | 166 |
Deferred income taxes | (9) | (65) |
Other | (61) | 69 |
Net cash provided by operating activities | 3,981 | 4,564 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (556) | (458) |
Proceeds from sales of property and equipment | 8 | 13 |
Net cash used in investing activities | (548) | (445) |
Cash Flows from Financing Activities: | ||
Repayments of short-term debt, net | (1,209) | (710) |
Repayments of long-term debt | (10) | (11) |
Repurchases of common stock | (1,121) | (1,289) |
Proceeds from sales of common stock | 14 | 31 |
Cash dividends | (1,189) | (1,069) |
Other financing activities | 115 | (33) |
Net cash used in financing activities | (3,400) | (3,081) |
Change in cash and cash equivalents | 33 | 1,038 |
Effect of exchange rate changes on cash and cash equivalents | (29) | (11) |
Cash and cash equivalents at beginning of period | 3,595 | 2,538 |
Cash and cash equivalents at end of period | 3,599 | 3,565 |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest, net of interest capitalized | 339 | 321 |
Cash paid for income taxes | $ 119 | $ 135 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 29, 2018 | |
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. and 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 financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2017 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2017 Form 10-K, except as set forth below. Net Sales We recognize revenue, net of expected returns and sales tax, at the time the customer takes possession of merchandise, or when a service is performed. The liability for sales returns, including the impact to gross profit, is estimated based on historical return levels, and recognized at the transaction price. We also recognize a return asset, and corresponding adjustment to cost of sales, for our right to recover the goods returned by the customer, measured at the former carrying amount of the goods, less any expected recovery cost. At each financial reporting date, we assess our estimates of expected returns, refund liabilities, and return assets. Net sales include services revenue generated through a variety of installation, home maintenance, and professional service programs. In these programs, the customer selects and purchases material for a project, and we provide or arrange for professional installation. These programs are offered through our stores and in-home sales programs. Under certain programs, when we provide or arrange for the installation of a project and the subcontractor provides material as part of the installation, both the material and labor are included in services revenue. We recognize this revenue when the service for the customer is complete, which is not materially different from recognizing the revenue over the service period as the substantial majority of our services are completed within one week. For merchandise sold in one of our stores or online, tender is accepted at the point of sale. For services, we generally accept tender upon completion of the job. When we receive payment from customers before the customer has taken possession of the merchandise or the service has been performed, the amount received is recorded as deferred revenue until the sale or service is complete. Such performance obligations are part of contracts with expected original durations of three months or less. We further record deferred revenue for the sale of gift cards and recognize the associated revenue upon the redemption of those gift cards in net sales. Gift card breakage income (estimated non-redeemed gift card balance) is recognized in proportion to the redemption pattern of rights exercised by the customer. For merchandise sold to customers to whom we directly extend credit, collection of tender is typically expected within three months or less from the time of purchase. We also have agreements with third-party service providers who directly extend credit to customers and manage our PLCC program. The deferred interest charges we incur for our deferred financing programs offered to our customers, interchange fees charged to us for our customers’ use of the cards, and any profit sharing with the third-party service providers are included in net sales. Cost of Sales Cost of sales includes the actual cost of merchandise sold and services performed; the cost of transportation of merchandise from vendors to our distribution network, stores, or customers; shipping and handling costs from our stores or distribution network to customers; and the operating cost and depreciation of our sourcing and distribution network and online fulfillment centers. |
New Accounting Pronouncements and Changes in Accounting Principles | Recently Adopted Accounting Pronouncements ASU No. 2014-09. In May 2014, the FASB issued a new standard related to revenue recognition. Under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On January 29, 2018, we adopted ASU No. 2014-09 using the modified retrospective transition method. In preparation for implementation of the standard, we concluded on key accounting assessments and then implemented internal controls and updated processes to appropriately recognize and present the associated financial information. Based on these efforts, we determined that the adoption of ASU No. 2014-09 changes the presentation of (i) certain expenses and cost reimbursements associated with our PLCC program (now recognized in net sales), (ii) certain expenses related to the sale of gift cards to customers (now recognized in operating expense), and (iii) gift card breakage income (now recognized in net sales). We also have changed our recognition of gift card breakage income to be recognized proportionately as redemption occurs, rather than based on historical redemption patterns. In addition, the adoption of ASU No. 2014-09 requires that we recognize our sales return allowance on a gross basis rather than as a net liability. As such, we now recognize (i) a return asset for the right to recover the goods returned by the customer, measured at the former carrying amount of the goods, less any expected recovery costs (recorded as an increase to other current assets) and (ii) a return liability for the amount of expected returns (recorded as an increase to other accrued expenses and a decrease to receivables, net). We applied ASU No. 2014-09 only to contracts that were not completed prior to fiscal 2018. The cumulative effect of initially applying ASU No. 2014-09 was a $75 million increase to the opening balance of retained earnings as of January 29, 2018. The comparative prior period information continues to be reported under the accounting standards in effect during those periods. We expect the impact of the adoption to be immaterial to our financial position, results of operations, and cash flows on an ongoing basis. The effect of the adoption of ASU No. 2014-09 on our consolidated balance sheet as of April 29, 2018, follows. in millions As Reported ASU No. 2014-09 Effect (1) Excluding Receivables, net $ 2,296 $ (46 ) $ 2,342 Other current assets 887 269 618 Other accrued expenses 2,804 223 2,581 ————— (1) Does not include the cumulative effect of initially applying ASU No. 2014-09 to our consolidated balance sheet as adjusted as of January 29, 2018. The effect of the adoption of ASU No. 2014-09 on our consolidated statement of earnings for the three months ended April 29, 2018 follows. in millions As Reported ASU No. 2014-09 Effect Excluding ASU No. 2014-09 Effect Net sales $ 24,947 $ 33 $ 24,914 Cost of sales 16,330 (98 ) 16,428 Gross profit 8,617 131 8,486 Selling, general and administrative 4,779 131 4,648 ASU No. 2016-16. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intercompany transfer of assets other than inventory when the transfer occurs. An entity will continue to recognize the income tax consequences of an intercompany transfer of inventory when the inventory is sold to a third party. On January 29, 2018, we adopted ASU No. 2016-16 using the modified retrospective transition method with no impact on our consolidated financial statements. We expect the impact of the adoption to be immaterial to our financial position, results of operations, and cash flows on an ongoing basis. Recent Accounting Pronouncements Recent accounting pronouncements pending adoption not discussed above or in the 2017 Form 10-K are either not applicable or will not have or are not expected to have a material impact on us. |
Net Sales
Net Sales | 3 Months Ended |
Apr. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | NET SALES No sales to an individual customer or country other than the U.S. accounted for more than 10% of net sales during the first quarter of fiscal 2018. Net sales, classified by geography, for the three months ended April 29, 2018 follow. in millions Net sales – in the U.S. $ 23,043 Net sales – outside the U.S. 1,904 Net sales $ 24,947 Net sales by products and services for the three months ended April 29, 2018 follow. in millions Net sales – products $ 23,735 Net sales – services 1,212 Net sales $ 24,947 Major product lines, as well as the associated merchandising departments (and related services) for the three months ended April 29, 2018 follow. Major Product Line Merchandising Departments Building Materials Building Materials, Electrical, Lighting, Lumber, Millwork, and Plumbing Décor Appliances, Décor, Flooring, Kitchen and Bath, and Paint Hardlines Hardware, Indoor Garden, Outdoor Garden, and Tools Net sales by major product lines for the three months ended April 29, 2018 follow. in millions Building Materials $ 9,326 Hardlines 8,415 Décor 7,206 Net sales $ 24,947 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. For the three months ended April 29, 2018, our accounting for the Tax Act is incomplete. As disclosed in our 2017 Form 10-K, however, we were able to reasonably estimate certain effects and, therefore, recorded provisional adjustments associated with the deemed repatriation transition tax and remeasurement of deferred tax assets and liabilities. We have not made any measurement-period adjustments related to these items during the first quarter of fiscal 2018 because we have not finalized the following items: the earnings and profits of the relevant subsidiaries, deemed repatriation of deferred foreign income, and prior year deferred tax activity. We are continuing to gather additional information to complete our accounting for these items and expect to complete our accounting within the one-year time period provided by SAB 118. Any adjustment to these amounts during the measurement period will be recorded in income tax expense in the period in which the analysis is complete. The Tax Act also creates a new requirement that certain income (i.e., global intangible low-taxed income or "GILTI") earned by controlled foreign corporations ("CFCs") must be included currently in the gross income of the CFCs’ U.S. shareholder. Due to the complexity of the new GILTI tax rules, we are not yet able to reasonably estimate the long-term effects of this provision. Therefore, we have not recorded any potential deferred tax effects related to GILTI in our consolidated financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI or use the period cost method. We have, however, included an estimate of the current GILTI impact in our annual effective tax rate for fiscal 2018. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 29, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | STOCKHOLDERS' EQUITY Accelerated Share Repurchase Agreements We enter into ASR agreements from time to time with third-party financial institutions to repurchase shares of our common stock. These agreements are structured as outlined in the 2017 Form 10-K. The terms of the ASR agreement entered into during the first three months of fiscal 2018 follow (in millions). Agreement Date Settlement Date Agreement Amount Initial Shares Delivered Additional Shares Delivered Total Shares Delivered Q1 2018 (1) Q2 2018 (2) $750 3.4 0.8 4.2 ————— (1) The fair market value of the initial 3.4 million shares on the date of delivery was $598 million and is included in treasury stock as of April 29, 2018, with the remaining $152 million included in paid-in capital. (2) The ASR agreement terminated on May 17, 2018, at which time we became contractually entitled to receive an additional 0.8 million shares upon settlement. See Note 6 to the consolidated financial statements in the 2017 Form 10-K for further discussion. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 29, 2018 | |
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. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities that are measured at fair value on a recurring basis follow. Fair Value at April 29, 2018 Using Fair Value at January 28, 2018 Using amounts in millions Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative agreements - assets $ $ 200 $ $ $ 235 $ Derivative agreements - liabilities — (29 ) — — (12 ) — Total $ $ 171 $ $ $ 223 $ We use derivative financial instruments from time to time in the management of our interest rate exposure on long-term debt and our exposure on foreign currency fluctuations. The fair value of our derivative financial instruments was measured using observable market information (level 2). Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The carrying amounts of cash and cash equivalents, receivables, short-term debt, and accounts payable approximate fair value due to the short-term maturities of these financial instruments. Long-lived assets and other intangible assets were analyzed for impairment on a nonrecurring basis using fair value measurements with unobservable inputs (level 3). The aggregate fair values and carrying values of our senior notes follow. April 29, 2018 January 28, 2018 in millions Fair Value (Level 1) Carrying Value Fair Value (Level 1) Carrying Value Senior notes $ 25,545 $ 24,469 $ 26,617 $ 24,485 |
Weighted Average Common Shares
Weighted Average Common Shares | 3 Months Ended |
Apr. 29, 2018 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | WEIGHTED AVERAGE COMMON SHARES The reconciliation of our basic to diluted weighted average common shares follows. Three Months Ended in millions April 29, April 30, Basic weighted average common shares 1,152 1,198 Effect of potentially dilutive securities 6 6 Diluted weighted average common shares 1,158 1,204 Anti-dilutive securities excluded from diluted weighted average common shares (1) — 1 ————— (1) Represent options that were granted under our employee stock plans to purchase shares of our common stock. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND 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. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of The Home Depot, Inc. and 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 financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2017 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2017 Form 10-K, except as set forth below. |
Net Sales | Net Sales We recognize revenue, net of expected returns and sales tax, at the time the customer takes possession of merchandise, or when a service is performed. The liability for sales returns, including the impact to gross profit, is estimated based on historical return levels, and recognized at the transaction price. We also recognize a return asset, and corresponding adjustment to cost of sales, for our right to recover the goods returned by the customer, measured at the former carrying amount of the goods, less any expected recovery cost. At each financial reporting date, we assess our estimates of expected returns, refund liabilities, and return assets. Net sales include services revenue generated through a variety of installation, home maintenance, and professional service programs. In these programs, the customer selects and purchases material for a project, and we provide or arrange for professional installation. These programs are offered through our stores and in-home sales programs. Under certain programs, when we provide or arrange for the installation of a project and the subcontractor provides material as part of the installation, both the material and labor are included in services revenue. We recognize this revenue when the service for the customer is complete, which is not materially different from recognizing the revenue over the service period as the substantial majority of our services are completed within one week. For merchandise sold in one of our stores or online, tender is accepted at the point of sale. For services, we generally accept tender upon completion of the job. When we receive payment from customers before the customer has taken possession of the merchandise or the service has been performed, the amount received is recorded as deferred revenue until the sale or service is complete. Such performance obligations are part of contracts with expected original durations of three months or less. We further record deferred revenue for the sale of gift cards and recognize the associated revenue upon the redemption of those gift cards in net sales. Gift card breakage income (estimated non-redeemed gift card balance) is recognized in proportion to the redemption pattern of rights exercised by the customer. For merchandise sold to customers to whom we directly extend credit, collection of tender is typically expected within three months or less from the time of purchase. We also have agreements with third-party service providers who directly extend credit to customers and manage our PLCC program. The deferred interest charges we incur for our deferred financing programs offered to our customers, interchange fees charged to us for our customers’ use of the cards, and any profit sharing with the third-party service providers are included in net sales. |
Cost of Sales | Cost of Sales Cost of sales includes the actual cost of merchandise sold and services performed; the cost of transportation of merchandise from vendors to our distribution network, stores, or customers; shipping and handling costs from our stores or distribution network to customers; and the operating cost and depreciation of our sourcing and distribution network and online fulfillment centers. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of the adoption of ASU No. 2014-09 on our consolidated balance sheet as of April 29, 2018, follows. in millions As Reported ASU No. 2014-09 Effect (1) Excluding Receivables, net $ 2,296 $ (46 ) $ 2,342 Other current assets 887 269 618 Other accrued expenses 2,804 223 2,581 ————— (1) Does not include the cumulative effect of initially applying ASU No. 2014-09 to our consolidated balance sheet as adjusted as of January 29, 2018. The effect of the adoption of ASU No. 2014-09 on our consolidated statement of earnings for the three months ended April 29, 2018 follows. in millions As Reported ASU No. 2014-09 Effect Excluding ASU No. 2014-09 Effect Net sales $ 24,947 $ 33 $ 24,914 Cost of sales 16,330 (98 ) 16,428 Gross profit 8,617 131 8,486 Selling, general and administrative 4,779 131 4,648 |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
Apr. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | Net sales, classified by geography, for the three months ended April 29, 2018 follow. in millions Net sales – in the U.S. $ 23,043 Net sales – outside the U.S. 1,904 Net sales $ 24,947 |
Revenue from External Customers by Products and Services | Net sales by products and services for the three months ended April 29, 2018 follow. in millions Net sales – products $ 23,735 Net sales – services 1,212 Net sales $ 24,947 Net sales by major product lines for the three months ended April 29, 2018 follow. in millions Building Materials $ 9,326 Hardlines 8,415 Décor 7,206 Net sales $ 24,947 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 29, 2018 | |
Equity [Abstract] | |
Accelerated Share Repurchases | The terms of the ASR agreement entered into during the first three months of fiscal 2018 follow (in millions). Agreement Date Settlement Date Agreement Amount Initial Shares Delivered Additional Shares Delivered Total Shares Delivered Q1 2018 (1) Q2 2018 (2) $750 3.4 0.8 4.2 ————— (1) The fair market value of the initial 3.4 million shares on the date of delivery was $598 million and is included in treasury stock as of April 29, 2018, with the remaining $152 million included in paid-in capital. (2) The ASR agreement terminated on May 17, 2018, at which time we became contractually entitled to receive an additional 0.8 million shares upon settlement. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities that are measured at fair value on a recurring basis follow. Fair Value at April 29, 2018 Using Fair Value at January 28, 2018 Using amounts in millions Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative agreements - assets $ $ 200 $ $ $ 235 $ Derivative agreements - liabilities — (29 ) — — (12 ) — Total $ $ 171 $ $ $ 223 $ |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The aggregate fair values and carrying values of our senior notes follow. April 29, 2018 January 28, 2018 in millions Fair Value (Level 1) Carrying Value Fair Value (Level 1) Carrying Value Senior notes $ 25,545 $ 24,469 $ 26,617 $ 24,485 |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 3 Months Ended |
Apr. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The reconciliation of our basic to diluted weighted average common shares follows. Three Months Ended in millions April 29, April 30, Basic weighted average common shares 1,152 1,198 Effect of potentially dilutive securities 6 6 Diluted weighted average common shares 1,158 1,204 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive securities excluded from diluted weighted average common shares (1) — 1 ————— (1) Represent options that were granted under our employee stock plans to purchase shares of our common stock. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Recently Adopted Accounting Pronouncements) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 29, 2018 | Apr. 30, 2017 | Jan. 29, 2018 | Jan. 28, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Receivables, net | $ 2,296 | $ 1,952 | ||
Other current assets | 887 | 638 | ||
Other accrued expenses | 2,804 | $ 2,224 | ||
Net sales | 24,947 | $ 23,887 | ||
Cost of sales | 16,330 | 15,733 | ||
Gross profit | 8,617 | 8,154 | ||
Selling, general and administrative | 4,779 | $ 4,361 | ||
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change on equity | $ 75 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Receivables, net | (46) | |||
Other current assets | 269 | |||
Other accrued expenses | 223 | |||
Net sales | 33 | |||
Cost of sales | (98) | |||
Gross profit | 131 | |||
Selling, general and administrative | 131 | |||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Receivables, net | 2,342 | |||
Other current assets | 618 | |||
Other accrued expenses | 2,581 | |||
Net sales | 24,914 | |||
Cost of sales | 16,428 | |||
Gross profit | 8,486 | |||
Selling, general and administrative | $ 4,648 |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 24,947 | $ 23,887 |
Inside the U.S. [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 23,043 | |
Outside the U.S. [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,904 | |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 23,735 | |
Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,212 | |
Major Product Line, Building Materials [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9,326 | |
Major Product Line, Hardlines [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8,415 | |
Major Product Line, Décor [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 7,206 |
Net Sales (Narrative) (Details)
Net Sales (Narrative) (Details) - Sales Revenue, Net [Member] - Maximum [Member] | 3 Months Ended |
Apr. 29, 2018 | |
Geographic Concentration Risk [Member] | Outside the U.S. [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration Risk, Percentage | 10.00% |
Customer Concentration Risk [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration Risk, Percentage | 10.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | May 17, 2018 | Apr. 29, 2018 | Apr. 30, 2017 | May 17, 2018 | Jan. 28, 2018 |
Accelerated Share Repurchases [Line Items] | |||||
Repurchases of common stock through accelerated share repurchase agreements | $ 1,121 | $ 1,289 | |||
Treasury stock value | 49,044 | $ 48,196 | |||
Paid-in capital | 10,017 | $ 10,192 | |||
Q1 Accelerated Share Repurchase Agreement [Member] | |||||
Accelerated Share Repurchases [Line Items] | |||||
Repurchases of common stock through accelerated share repurchase agreements | $ 750 | ||||
Treasury stock shares acquired | 3.4 | ||||
Treasury stock value | $ 598 | ||||
Paid-in capital | $ 152 | ||||
Q1 Accelerated Share Repurchase Agreement [Member] | Subsequent Event [Member] | |||||
Accelerated Share Repurchases [Line Items] | |||||
Treasury stock shares acquired | 0.8 | 4.2 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Apr. 29, 2018 | Jan. 28, 2018 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | $ 0 | $ 0 |
Derivative agreements - liabilities | 0 | 0 |
Derivative agreements - net fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | 200 | 235 |
Derivative agreements - liabilities | (29) | (12) |
Derivative agreements - net fair value | 171 | 223 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | 0 | 0 |
Derivative agreements - liabilities | 0 | 0 |
Derivative agreements - net fair value | $ 0 | $ 0 |
Fair Value Measurements (Asse25
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | Apr. 29, 2018 | Jan. 28, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of senior notes | $ 24,469 | $ 24,485 |
Senior Notes [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior notes | $ 25,545 | $ 26,617 |
Weighted Average Common Share26
Weighted Average Common Shares (Reconciliation of Basic to Diluted Weighted Average Common Shares) (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Reconciliation of Basic to Diluted Weighted Average Common Shares: | ||
Basic weighted average common shares | 1,152 | 1,198 |
Effect of potentially dilutive securities | 6 | 6 |
Diluted weighted average common shares | 1,158 | 1,204 |
Weighted Average Common Share27
Weighted Average Common Shares (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of anti-dilutive securities excluded from diluted weighted average common shares | 0 | 1 |