x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 95-3261426 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
2455 Paces Ferry Road, Atlanta, Georgia | 30339 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ | |||
Emerging growth company ¨ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ | |||||
Page | ||
amounts in millions, except share and per share data | July 30, 2017 | January 29, 2017 | |||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 4,830 | $ | 2,538 | |||
Receivables, net | 2,187 | 2,029 | |||||
Merchandise Inventories | 12,868 | 12,549 | |||||
Other Current Assets | 626 | 608 | |||||
Total Current Assets | 20,511 | 17,724 | |||||
Property and Equipment, at cost | 41,405 | 40,426 | |||||
Less Accumulated Depreciation and Amortization | 19,370 | 18,512 | |||||
Net Property and Equipment | 22,035 | 21,914 | |||||
Goodwill | 2,235 | 2,093 | |||||
Other Assets | 1,178 | 1,235 | |||||
Total Assets | $ | 45,959 | $ | 42,966 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-Term Debt | $ | — | $ | 710 | |||
Accounts Payable | 8,541 | 7,000 | |||||
Accrued Salaries and Related Expenses | 1,503 | 1,484 | |||||
Sales Taxes Payable | 711 | 508 | |||||
Deferred Revenue | 1,931 | 1,669 | |||||
Income Taxes Payable | 329 | 25 | |||||
Current Installments of Long-Term Debt | 545 | 542 | |||||
Other Accrued Expenses | 2,263 | 2,195 | |||||
Total Current Liabilities | 15,823 | 14,133 | |||||
Long-Term Debt, excluding current installments | 24,422 | 22,349 | |||||
Other Long-Term Liabilities | 1,923 | 1,855 | |||||
Deferred Income Taxes | 237 | 296 | |||||
Total Liabilities | 42,405 | 38,633 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.779 billion shares at July 30, 2017 and 1.776 billion shares at January 29, 2017; outstanding: 1.181 billion shares at July 30, 2017 and 1.203 billion shares at January 29, 2017 | 89 | 88 | |||||
Paid-In Capital | 9,958 | 9,787 | |||||
Retained Earnings | 38,073 | 35,519 | |||||
Accumulated Other Comprehensive Loss | (482 | ) | (867 | ) | |||
Treasury Stock, at cost, 598 million shares at July 30, 2017 and 573 million shares at January 29, 2017 | (44,084 | ) | (40,194 | ) | |||
Total Stockholders’ Equity | 3,554 | 4,333 | |||||
Total Liabilities and Stockholders’ Equity | $ | 45,959 | $ | 42,966 |
Three Months Ended | Six Months Ended | ||||||||||||||
amounts in millions, except per share data | July 30, 2017 | July 31, 2016 | July 30, 2017 | July 31, 2016 | |||||||||||
NET SALES | $ | 28,108 | $ | 26,472 | $ | 51,995 | $ | 49,234 | |||||||
Cost of Sales | 18,647 | 17,545 | 34,380 | 32,516 | |||||||||||
GROSS PROFIT | 9,461 | 8,927 | 17,615 | 16,718 | |||||||||||
Operating Expenses: | |||||||||||||||
Selling, General and Administrative | 4,549 | 4,388 | 8,910 | 8,669 | |||||||||||
Depreciation and Amortization | 449 | 436 | 893 | 869 | |||||||||||
Total Operating Expenses | 4,998 | 4,824 | 9,803 | 9,538 | |||||||||||
OPERATING INCOME | 4,463 | 4,103 | 7,812 | 7,180 | |||||||||||
Interest and Other (Income) Expense: | |||||||||||||||
Interest and Investment Income | (16 | ) | (8 | ) | (29 | ) | (15 | ) | |||||||
Interest Expense | 265 | 236 | 519 | 480 | |||||||||||
Interest and Other, net | 249 | 228 | 490 | 465 | |||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 4,214 | 3,875 | 7,322 | 6,715 | |||||||||||
Provision for Income Taxes | 1,542 | 1,434 | 2,636 | 2,471 | |||||||||||
NET EARNINGS | $ | 2,672 | $ | 2,441 | $ | 4,686 | $ | 4,244 | |||||||
Basic Weighted Average Common Shares | 1,183 | 1,235 | 1,191 | 1,242 | |||||||||||
BASIC EARNINGS PER SHARE | $ | 2.26 | $ | 1.98 | $ | 3.93 | $ | 3.42 | |||||||
Diluted Weighted Average Common Shares | 1,189 | 1,240 | 1,197 | 1,247 | |||||||||||
DILUTED EARNINGS PER SHARE | $ | 2.25 | $ | 1.97 | $ | 3.91 | $ | 3.40 | |||||||
Dividends Declared per Share | $ | 0.89 | $ | 0.69 | $ | 1.78 | $ | 1.38 |
Three Months Ended | Six Months Ended | ||||||||||||||
amounts in millions | July 30, 2017 | July 31, 2016 | July 30, 2017 | July 31, 2016 | |||||||||||
NET EARNINGS | $ | 2,672 | $ | 2,441 | $ | 4,686 | $ | 4,244 | |||||||
Other Comprehensive Income (Loss): | |||||||||||||||
Foreign Currency Translation Adjustments | 419 | (192 | ) | 389 | 117 | ||||||||||
Cash Flow Hedges, net of tax | 22 | (9 | ) | (3 | ) | 2 | |||||||||
Other | — | 1 | (1 | ) | 1 | ||||||||||
Total Other Comprehensive Income (Loss) | 441 | (200 | ) | 385 | 120 | ||||||||||
COMPREHENSIVE INCOME | $ | 3,113 | $ | 2,241 | $ | 5,071 | $ | 4,364 |
Six Months Ended | |||||||
amounts in millions | July 30, 2017 | July 31, 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Earnings | $ | 4,686 | $ | 4,244 | |||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: | |||||||
Depreciation and Amortization | 1,015 | 978 | |||||
Stock-Based Compensation Expense | 148 | 133 | |||||
Changes in Assets and Liabilities, net of the effects of acquisitions: | |||||||
Receivables, net | (96 | ) | (91 | ) | |||
Merchandise Inventories | (188 | ) | (495 | ) | |||
Other Current Assets | — | (38 | ) | ||||
Accounts Payable and Accrued Expenses | 1,714 | 1,773 | |||||
Deferred Revenue | 254 | 94 | |||||
Income Taxes Payable | 299 | 389 | |||||
Deferred Income Taxes | (79 | ) | (86 | ) | |||
Other, net | 109 | (24 | ) | ||||
Net Cash Provided by Operating Activities | 7,862 | 6,877 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital Expenditures | (846 | ) | (697 | ) | |||
Payments for Business Acquired, net | (268 | ) | — | ||||
Proceeds from Sales of Property and Equipment | 23 | 23 | |||||
Net Cash Used in Investing Activities | (1,091 | ) | (674 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repayments of Short-Term Debt, net | (710 | ) | (350 | ) | |||
Proceeds from Long-Term Debt, net of discounts | 1,994 | 2,989 | |||||
Repayments of Long-Term Debt | (21 | ) | (3,023 | ) | |||
Repurchases of Common Stock | (3,921 | ) | (2,441 | ) | |||
Proceeds from Sales of Common Stock | 137 | 121 | |||||
Cash Dividends Paid to Stockholders | (2,130 | ) | (1,718 | ) | |||
Other Financing Activities | 2 | 1 | |||||
Net Cash Used in Financing Activities | (4,649 | ) | (4,421 | ) | |||
Change in Cash and Cash Equivalents | 2,122 | 1,782 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 170 | 20 | |||||
Cash and Cash Equivalents at Beginning of Period | 2,538 | 2,216 | |||||
Cash and Cash Equivalents at End of Period | $ | 4,830 | $ | 4,018 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS |
3. | LONG-TERM DEBT |
4. | ACCELERATED SHARE REPURCHASE AGREEMENTS |
Agreement Date | Settlement Date | Amount | Initial Shares Delivered | Additional Shares Delivered | Total Shares Delivered | |||||||
Q2 2017 | Q2 2017 | $ | 1,650 | 9.7 | 1.1 | 10.8 |
5. | FAIR VALUE MEASUREMENTS |
amounts in millions | Fair Value at July 30, 2017 Using | Fair Value at January 29, 2017 Using | |||||||||||||||||||||
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 | $ | — | $ | 208 | $ | — | $ | — | $ | 271 | $ | — |
amounts in millions | July 30, 2017 | January 29, 2017 | |||||||||||||
Fair Value (Level 1) | Carrying Value | Fair Value (Level 1) | Carrying Value | ||||||||||||
Senior notes | $ | 26,194 | $ | 24,005 | $ | 23,620 | $ | 22,013 |
6. | BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES |
Three Months Ended | Six Months Ended | ||||||||||
amounts in millions | July 30, 2017 | July 31, 2016 | July 30, 2017 | July 31, 2016 | |||||||
Basic Weighted Average Common Shares | 1,183 | 1,235 | 1,191 | 1,242 | |||||||
Effect of potentially dilutive securities - stock plans | 6 | 5 | 6 | 5 | |||||||
Diluted Weighted Average Common Shares | 1,189 | 1,240 | 1,197 | 1,247 |
Effect of anti-dilutive securities excluded from diluted weighted average common shares | 1 | 1 | 1 | 1 |
7. | COMMITMENTS AND CONTINGENCIES |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
% of Net Sales | % Increase (Decrease) in Dollar Amounts | ||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
July 30, 2017 | July 31, 2016 | July 30, 2017 | July 31, 2016 | Three Months | Six Months | ||||||||||||||||
NET SALES | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 6.2 | % | 5.6 | % | |||||||||
GROSS PROFIT | 33.7 | 33.7 | 33.9 | 34.0 | 6.0 | 5.4 | |||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Selling, General and Administrative | 16.2 | 16.6 | 17.1 | 17.6 | 3.7 | 2.8 | |||||||||||||||
Depreciation and Amortization | 1.6 | 1.6 | 1.7 | 1.8 | 3.0 | 2.8 | |||||||||||||||
Total Operating Expenses | 17.8 | 18.2 | 18.9 | 19.4 | 3.6 | 2.8 | |||||||||||||||
OPERATING INCOME | 15.9 | 15.5 | 15.0 | 14.6 | 8.8 | 8.8 | |||||||||||||||
Interest and Other (Income) Expense: | |||||||||||||||||||||
Interest and Investment Income | (0.1 | ) | — | (0.1 | ) | — | 100.0 | 93.3 | |||||||||||||
Interest Expense | 0.9 | 0.9 | 1.0 | 1.0 | 12.3 | 8.1 | |||||||||||||||
Interest and Other, net | 0.9 | 0.9 | 0.9 | 0.9 | 9.2 | 5.4 | |||||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 15.0 | 14.6 | 14.1 | 13.6 | 8.7 | 9.0 | |||||||||||||||
Provision for Income Taxes | 5.5 | 5.4 | 5.1 | 5.0 | 7.5 | 6.7 | |||||||||||||||
NET EARNINGS | 9.5 | % | 9.2 | % | 9.0 | % | 8.6 | % | 9.5 | % | 10.4 | % | |||||||||
SELECTED SALES DATA (1) | |||||||||||||||||||||
Number of Customer Transactions | 441.8 | 430.0 | 822.6 | 804.8 | 2.8 | % | 2.2 | % | |||||||||||||
Average Ticket | $ | 63.05 | $ | 60.87 | $ | 62.74 | $ | 60.48 | 3.6 | % | 3.7 | % | |||||||||
Sales per Square Foot | $ | 464.38 | $ | 438.61 | $ | 429.17 | $ | 407.64 | 5.9 | % | 5.3 | % | |||||||||
Comparable Store Sales Increase (%) (2) | 6.3 | % | 4.7 | % | 6.0 | % | 5.5 | % | N/A | N/A | |||||||||||
Online Sales (% of Net Sales) (3) | 6.4 | % | 5.6 | % | 6.5 | % | 5.6 | % | 23.3 | % | 23.1 | % |
(1) | Selected Sales Data does not include results for Interline, which was acquired in the third quarter of fiscal 2015. |
(2) | Includes sales at locations open greater than 12 months, including relocated and remodeled stores and online sales, and excluding closed stores. Retail stores become comparable on the Monday following their 365th day of operation. Comparable store sales is intended only as supplemental information and is not a substitute for Net Sales or Net Earnings presented in accordance with U.S. generally accepted accounting principles. |
(3) | Consists of sales generated online through our websites for products picked up in stores or delivered to customer locations. |
For the Twelve Months Ended | ||||||||
amounts in millions | July 30, 2017 | July 31, 2016 | ||||||
Net Earnings | $ | 8,399 | $ | 7,440 | ||||
Add: | ||||||||
Interest and Other, net | 961 | 941 | ||||||
Provision for Income Taxes | 4,699 | 4,329 | ||||||
Operating Income | 14,059 | 12,710 | ||||||
Subtract: | ||||||||
Income Tax Adjustment (1) | 5,080 | 4,655 | ||||||
Net Operating Profit After Tax | $ | 8,979 | $ | 8,055 | ||||
Average Debt and Equity (2) | $ | 28,061 | $ | 27,757 | ||||
Return on Invested Capital (3) | 32.0 | % | 29.0 | % |
(1) | Income Tax Adjustment is defined as Operating Income multiplied by the Company's effective tax rate. |
(2) | Average Debt and Equity is defined as the average of beginning and ending long-term debt, including current installments, and equity for the most recent twelve-month period. |
(3) | Return on Invested Capital is calculated as Net Operating Profit After Tax divided by Average Debt and Equity. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
1. | During the second quarter of fiscal 2017, the Company issued 4,427 deferred stock units under The Home Depot, Inc. Non-Employee Directors' Deferred Stock Compensation Plan pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") and Rule 506 of the SEC's Regulation D thereunder. The deferred stock units were credited to the accounts of those non-employee directors who elected to receive all or a portion of board retainers in the form of deferred stock units instead of cash during the second quarter of fiscal 2017. The deferred stock units convert to shares of common stock on a one-for-one basis following a termination of service as described in this plan. |
2. | During the second quarter of fiscal 2017, the Company credited 1,201 deferred stock units to participant accounts under The Home Depot FutureBuilder Restoration Plan pursuant to an exemption from the registration requirements of the Securities Act for involuntary, non-contributory plans. The deferred stock units convert to shares of common stock on a one-for-one basis following the termination of service as described in this plan. |
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Program(2) | Dollar Value of Shares that May Yet Be Purchased Under the Program(2) | ||||||||||
May 1, 2017 – May 28, 2017 | 2,568,802 | $ | 155.10 | 2,541,700 | $ | 13,353,177,965 | ||||||||
May 29, 2017 – June 25, 2017(3) | 11,024,433 | $ | 153.59 | 11,021,252 | $ | 11,500,000,423 | ||||||||
June 26, 2017 – July 30, 2017(3) | 3,710,809 | $ | 148.57 | 3,703,136 | $ | 11,109,236,100 | ||||||||
17,304,044 | $ | 152.74 | 17,266,088 |
Item 6. | Exhibits |
THE HOME DEPOT, INC. | ||
(Registrant) | ||
By: | /s/ CRAIG A. MENEAR | |
Craig A. Menear | ||
Chairman, Chief Executive Officer and | ||
President | ||
/s/ CAROL B. TOMÉ | ||
Carol B. Tomé | ||
Chief Financial Officer and | ||
Executive Vice President – Corporate Services |
August 21, 2017 |
(Date) |
Exhibit | Description | |
Exhibits marked with an asterisk (*) are incorporated by reference to exhibits or appendices previously filed with the SEC, as indicated by the references in brackets. All other exhibits are filed or furnished herewith. | ||
*3.1 | ||
*3.2 | ||
12.1 | ||
15.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101 | The following financial information from the Quarterly Report on Form 10-Q for the fiscal quarter ended July 30, 2017, formatted in XBRL (Extensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Earnings; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to the Consolidated Financial Statements. |
Fiscal Year(1) | |||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
amounts in millions, except ratio data | July 30, 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||
Earnings Before Provision for Income Taxes | $ | 7,322 | $ | 12,491 | $ | 11,021 | $ | 9,976 | $ | 8,467 | $ | 7,221 | |||||||||||
Less: Capitalized Interest | — | (1 | ) | (2 | ) | (2 | ) | (2 | ) | (3 | ) | ||||||||||||
Add: | |||||||||||||||||||||||
Portion of Rental Expense under operating leases deemed to be the equivalent of interest | 173 | 333 | 312 | 312 | 308 | 298 | |||||||||||||||||
Interest Expense | 519 | 973 | 921 | 832 | 713 | 635 | |||||||||||||||||
Adjusted Earnings | $ | 8,014 | $ | 13,796 | $ | 12,252 | $ | 11,118 | $ | 9,486 | $ | 8,151 | |||||||||||
Fixed Charges: | |||||||||||||||||||||||
Interest Expense | $ | 519 | $ | 973 | $ | 921 | $ | 832 | $ | 713 | $ | 635 | |||||||||||
Portion of Rental Expense under operating leases deemed to be the equivalent of interest | 173 | 333 | 312 | 312 | 308 | 298 | |||||||||||||||||
Total Fixed Charges | $ | 692 | $ | 1,306 | $ | 1,233 | $ | 1,144 | $ | 1,021 | $ | 933 | |||||||||||
Ratio of Earnings to Fixed Charges(2) | 11.6 | x | 10.6 | x | 9.9 | x | 9.7 | x | 9.3 | x | 8.7 | x |
(1) | Fiscal years 2016, 2015, 2014, 2013 and 2012 refer to the fiscal years ended January 29, 2017, January 31, 2016, February 1, 2015, February 2, 2014 and February 3, 2013, respectively. Fiscal year 2012 includes 53 weeks; all other fiscal years reported include 52 weeks. |
(2) | For purposes of computing the ratios of earnings to fixed charges, “earnings” consist of earnings before provision for income taxes plus fixed charges, excluding capitalized interest. “Fixed charges” consist of interest incurred on indebtedness including capitalized interest, amortization of debt expenses and the portion of rental expense under operating leases deemed to be the equivalent of interest. The ratios of earnings to fixed charges are calculated as follows: |
Description | Registration Statement Number |
Form S-3 | |
Depot Direct stock purchase program | 333-200607 |
Debt securities | 333-206550 |
Form S-8 | |
The Home Depot, Inc. 1997 Omnibus Stock Incentive Plan | 333-61733 |
The Home Depot Canada Registered Retirement Savings Plan | 333-38946 |
The Home Depot, Inc. Restated and Amended Employee Stock Purchase Plan | 333-151849 |
The Home Depot, Inc. Amended and Restated Employee Stock Purchase Plan | 333-182374 |
The Home Depot, Inc. Non-Qualified Stock Option and Deferred Stock Units Plan and Agreement | 333-56722 |
The Home Depot, Inc. 2005 Omnibus Stock Incentive Plan | 333-125331 |
The Home Depot, Inc. 2005 Omnibus Stock Incentive Plan | 333-153171 |
The Home Depot FutureBuilder and The Home Depot FutureBuilder for Puerto Rico | 333-125332 |
1. | I have reviewed this quarterly report on Form 10-Q of The Home Depot, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Craig A. Menear |
Craig A. Menear |
Chairman, Chief Executive Officer and President |
1. | I have reviewed this quarterly report on Form 10-Q of The Home Depot, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Carol B. Tomé |
Carol B. Tomé |
Chief Financial Officer and |
Executive Vice President – Corporate Services |
(1) | The Form 10-Q fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Craig A. Menear |
Craig A. Menear |
Chairman, Chief Executive Officer and President |
August 21, 2017 |
(1) | The Form 10-Q fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Carol B. Tomé |
Carol B. Tomé |
Chief Financial Officer and |
Executive Vice President – Corporate Services |
August 21, 2017 |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jul. 30, 2017 |
Aug. 15, 2017 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | HOME DEPOT INC | |
Entity Central Index Key | 0000354950 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,178,817,584 |
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions |
Jul. 30, 2017 |
Jan. 29, 2017 |
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Statement of Financial Position [Abstract] | ||
Common Stock, par value | $ 0.05 | $ 0.05 |
Common Stock, shares authorized | 10,000 | 10,000 |
Common Stock, shares issued | 1,779 | 1,776 |
Common Stock, shares outstanding | 1,181 | 1,203 |
Treasury Stock, shares | 598 | 573 |
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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Income Statement [Abstract] | ||||
NET SALES | $ 28,108 | $ 26,472 | $ 51,995 | $ 49,234 |
Cost of Sales | 18,647 | 17,545 | 34,380 | 32,516 |
GROSS PROFIT | 9,461 | 8,927 | 17,615 | 16,718 |
Operating Expenses: | ||||
Selling, General and Administrative | 4,549 | 4,388 | 8,910 | 8,669 |
Depreciation and Amortization | 449 | 436 | 893 | 869 |
Total Operating Expenses | 4,998 | 4,824 | 9,803 | 9,538 |
OPERATING INCOME | 4,463 | 4,103 | 7,812 | 7,180 |
Interest and Other (Income) Expense: | ||||
Interest and Investment Income | (16) | (8) | (29) | (15) |
Interest Expense | 265 | 236 | 519 | 480 |
Interest and Other, net | 249 | 228 | 490 | 465 |
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 4,214 | 3,875 | 7,322 | 6,715 |
Provision for Income Taxes | 1,542 | 1,434 | 2,636 | 2,471 |
NET EARNINGS | $ 2,672 | $ 2,441 | $ 4,686 | $ 4,244 |
Basic Weighted Average Common Shares | 1,183 | 1,235 | 1,191 | 1,242 |
BASIC EARNINGS PER SHARE | $ 2.26 | $ 1.98 | $ 3.93 | $ 3.42 |
Diluted Weighted Average Common Shares | 1,189 | 1,240 | 1,197 | 1,247 |
DILUTED EARNINGS PER SHARE | $ 2.25 | $ 1.97 | $ 3.91 | $ 3.40 |
Dividends Declared per Share | $ 0.89 | $ 0.69 | $ 1.78 | $ 1.38 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||
Net Earnings | $ 2,672 | $ 2,441 | $ 4,686 | $ 4,244 |
Other Comprehensive Income (Loss): | ||||
Foreign Currency Translation Adjustments | 419 | (192) | 389 | 117 |
Cash Flow Hedges, net of tax | 22 | (9) | (3) | 2 |
Other | 0 | 1 | (1) | 1 |
Total Other Comprehensive Income (Loss) | 441 | (200) | 385 | 120 |
COMPREHENSIVE INCOME | $ 3,113 | $ 2,241 | $ 5,071 | $ 4,364 |
Summary of Significant Accounting Policies |
6 Months Ended |
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Jul. 30, 2017 | |
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 Subsidiaries (the "Company") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("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 statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended January 29, 2017, as filed with the Securities and Exchange Commission on March 23, 2017 (the "2016 Form 10-K"). Valuation Reserves As of July 30, 2017 and January 29, 2017, the valuation allowances for Merchandise Inventories and uncollectible Receivables were not material. Recent Accounting Pronouncements There have been no material changes to the Company’s position regarding recent accounting pronouncements pending adoption as disclosed in the 2016 Form 10-K, except as set forth below. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In addition, ASU No. 2014-09 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or modified retrospective transition method. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company continues to evaluate the effect that ASU No. 2014-09 will have on its Consolidated Financial Statements and related disclosures and controls. Based on its preliminary assessment, the Company has determined that the adoption of ASU No. 2014-09 could impact the timing of revenue recognition through its services, gift card and various incentive programs. ASU No. 2014-09 will impact the Company’s method of recognizing gift card breakage income, which is currently recognized based upon historical redemption patterns. ASU No. 2014-09 requires gift card breakage income to be recognized in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage. The Company is also evaluating the principal versus agent considerations as it relates to certain arrangements with third parties that could impact the presentation of gross or net revenue reporting. Other areas which could be impacted may be identified as the Company continues its evaluation of ASU No. 2014-09. The Company plans to adopt ASU No. 2014-09 on January 29, 2018 using the modified retrospective transition method. Recent accounting pronouncements pending adoption not discussed above or in the 2016 Form 10-K are either not applicable or will not have or are not expected to have a material impact on the Company. |
Recently Adopted Accounting Pronouncements |
6 Months Ended |
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Jul. 30, 2017 | |
Prospective Adoption of New Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS On January 30, 2017, the Company adopted ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". Upon adoption of this update, all excess tax benefits or deficiencies related to share-based payment awards are recognized in the provision for income taxes in the period in which they occur. Previously these amounts were reflected in paid-in capital. In addition, upon adoption these amounts are classified as an operating activity in the consolidated statements of cash flows in the period in which they occur. Previously, these amounts were reflected as a financing activity. Cash paid by the Company to tax authorities when directly withholding shares for tax withholding purposes will continue to be classified as a financing activity in the consolidated statements of cash flows. Stock-based compensation expense will continue to reflect estimated forfeitures of share-based awards. The Company has adopted the applicable provisions of ASU No. 2016-09 prospectively. As a result of the adoption of ASU No. 2016-09, the Company recognized $20 million and $85 million of excess tax benefits related to share-based payment awards in its provision for income taxes during the second quarter and first six months of fiscal 2017, respectively. The recognition of these benefits contributed $0.02 and $0.07 to Diluted Earnings per Share for the second quarter and first six months of fiscal 2017, respectively. |
Long-Term Debt |
6 Months Ended |
---|---|
Jul. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT In June 2017, the Company issued $500 million of floating rate senior notes due June 5, 2020 (the "2020 floating rate notes"); $750 million of 1.80% senior notes due June 5, 2020 (the "2020 notes") at a discount of $1 million; and $750 million of 3.90% senior notes due June 15, 2047 (the "2047 notes") at a discount of $5 million (together, the “June 2017 issuance”). The 2020 floating rate notes bear interest at a variable rate determined quarterly equal to the three-month London Interbank Offered Rate ("LIBOR") plus 15 basis points. Interest on the 2020 floating rate notes is due quarterly on March 5, June 5, September 5, and December 5 of each year, beginning September 5, 2017. Interest on the 2020 notes is due semi-annually on June 5 and December 5 of each year, beginning December 5, 2017. Interest on the 2047 notes is due semi-annually on June 15 and December 15 of each year, beginning December 15, 2017. Interest payments for the 2020 notes and 2047 notes will include accrued interest from and including June 5, 2017. The $6 million discount associated with the 2020 notes and the 2047 notes is being amortized over the term of the notes using the effective interest rate method. Issuance costs of $12 million associated with the June 2017 issuance were recorded as a direct deduction to the senior notes and are being amortized over the term of the notes. The net proceeds of the June 2017 issuance will be used for general corporate purposes, including repurchases of the Company's common stock. All of the Company's senior notes, other than its outstanding floating rate notes, may be redeemed by the Company at any time, in whole or in part, at the redemption price plus accrued interest up to the redemption date. 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, as defined in the respective notes. Additionally, if a Change in Control Triggering Event occurs, as defined in the notes, holders of all notes have the right to require the Company to redeem those notes at 101% of the aggregate principal amount of the notes plus accrued interest up to the redemption date. The Company is generally not limited under the indentures governing the notes in its ability to incur additional indebtedness or required to maintain financial ratios or specified levels of net worth or liquidity. The indentures governing the notes contain various customary covenants; however, none are expected to impact the Company's liquidity or capital resources. |
Accelerated Share Repurchase Agreements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchase Agreements | ACCELERATED SHARE REPURCHASE AGREEMENTS The Company enters into Accelerated Share Repurchase ("ASR") agreements from time to time with third-party financial institutions to repurchase shares of the Company’s common stock. Under an ASR agreement, the Company pays a specified amount to the financial institution and receives an initial delivery of shares. This initial delivery of shares represents the minimum number of shares that the Company may receive under the agreement. Upon settlement of the ASR agreement, the financial institution delivers additional shares, with the final number of shares delivered determined with reference to the volume weighted average price per share of the Company’s common stock over the term of the ASR agreement, less a negotiated discount. The transactions are accounted for as equity transactions and are included in Treasury Stock when the shares are received, at which time there is an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share. The Company entered into an ASR agreement during the second quarter of fiscal 2017. The terms of the ASR agreement, which follow the structure outlined above, were as follows (amounts in millions):
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Fair Value Measurements |
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Jul. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The carrying amount of Cash and Cash Equivalents, Receivables and Accounts Payable reported in the Company's Consolidated Balance Sheets approximates fair value due to their short-term maturities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the assets and liabilities, if any, of the Company that are measured at fair value on a recurring basis:
The Company uses derivative financial instruments from time to time in the management of its interest rate exposure on certain Long-Term Debt and its exposure to foreign currency fluctuations. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Long-lived assets were analyzed for impairment on a nonrecurring basis using fair value measurements with unobservable inputs (level 3). Impairment charges related to long-lived assets in the first six months of fiscal 2017 and 2016 were not material. The aggregate fair and carrying values of the Company's senior notes were as follows:
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Basic And Diluted Weighted Average Common Shares |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic And Diluted Weighted Average Common Shares | BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES The following table presents the reconciliation of basic to diluted weighted average common shares as well as the effect of anti-dilutive securities excluded from diluted weighted average common shares:
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Commitments and Contingencies |
6 Months Ended |
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Jul. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Data Breach As previously reported, in the third quarter of fiscal 2014, the Company confirmed that its payment data systems were breached, which potentially impacted customers who used payment cards at self-checkout systems in the Company’s U.S. and Canadian stores (the "Data Breach"). Since the end of fiscal 2016, there have been no material changes with respect to the Data Breach, except as discussed below. As reported in the 2016 Form 10-K, in the first quarter of fiscal 2017, the Company agreed to settlement terms that, upon approval of the court, will resolve and dismiss the claims asserted in the financial institutions class actions. In addition, in the first quarter of fiscal 2017, the parties to the two purported shareholder derivative actions agreed to settlement terms that, upon approval of the court, will resolve and dismiss the claims asserted in those actions. As of the end of the first quarter of fiscal 2017, the Company has resolved the most significant claims relating to the Data Breach, and there were no material changes during the first six months of fiscal 2017 to the Company’s loss contingency assessment relating to any remaining matters. The Company does not believe that the ultimate amounts paid with respect to any remaining matters will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows in future periods. |
Summary of Significant Accounting Policies (Policy) |
6 Months Ended |
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Jul. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements of The Home Depot, Inc. and Subsidiaries (the "Company") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("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 statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended January 29, 2017, as filed with the Securities and Exchange Commission on March 23, 2017 (the "2016 Form 10-K"). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no material changes to the Company’s position regarding recent accounting pronouncements pending adoption as disclosed in the 2016 Form 10-K, except as set forth below. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In addition, ASU No. 2014-09 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or modified retrospective transition method. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company continues to evaluate the effect that ASU No. 2014-09 will have on its Consolidated Financial Statements and related disclosures and controls. Based on its preliminary assessment, the Company has determined that the adoption of ASU No. 2014-09 could impact the timing of revenue recognition through its services, gift card and various incentive programs. ASU No. 2014-09 will impact the Company’s method of recognizing gift card breakage income, which is currently recognized based upon historical redemption patterns. ASU No. 2014-09 requires gift card breakage income to be recognized in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage. The Company is also evaluating the principal versus agent considerations as it relates to certain arrangements with third parties that could impact the presentation of gross or net revenue reporting. Other areas which could be impacted may be identified as the Company continues its evaluation of ASU No. 2014-09. The Company plans to adopt ASU No. 2014-09 on January 29, 2018 using the modified retrospective transition method. On January 30, 2017, the Company adopted ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". Upon adoption of this update, all excess tax benefits or deficiencies related to share-based payment awards are recognized in the provision for income taxes in the period in which they occur. Previously these amounts were reflected in paid-in capital. In addition, upon adoption these amounts are classified as an operating activity in the consolidated statements of cash flows in the period in which they occur. Previously, these amounts were reflected as a financing activity. Cash paid by the Company to tax authorities when directly withholding shares for tax withholding purposes will continue to be classified as a financing activity in the consolidated statements of cash flows. Stock-based compensation expense will continue to reflect estimated forfeitures of share-based awards. The Company has adopted the applicable provisions of ASU No. 2016-09 prospectively |
Accelerated Share Repurchase Agreements (Tables) |
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Jul. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchase Agreements | The terms of the ASR agreement, which follow the structure outlined above, were as follows (amounts in millions):
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Fair Value Measurements (Tables) |
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Jul. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the assets and liabilities, if any, of the Company that are measured at fair value on a recurring basis:
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Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The aggregate fair and carrying values of the Company's senior notes were as follows:
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Basic And Diluted Weighted Average Common Shares (Tables) |
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Jul. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | The following table presents the reconciliation of basic to diluted weighted average common shares as well as the effect of anti-dilutive securities excluded from diluted weighted average common shares:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
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Recently Adopted Accounting Pronouncements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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Item Effected [Line Items] | ||||
Net Earnings | $ 2,672 | $ 2,441 | $ 4,686 | $ 4,244 |
Diluted Earnings per Share | $ 2.25 | $ 1.97 | $ 3.91 | $ 3.40 |
Accounting Standards Update 2016-09 [Member] | ||||
Item Effected [Line Items] | ||||
Net Earnings | $ 20 | $ 85 | ||
Diluted Earnings per Share | $ 0.02 | $ 0.07 |
Accelerated Share Repurchase Agreements (Details) - USD ($) shares in Millions, $ in Millions |
1 Months Ended | 2 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 30, 2017 |
Jul. 11, 2017 |
Jul. 30, 2017 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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Accelerated Share Repurchases [Line Items] | |||||
Repurchases of Common Stock | $ 3,921 | $ 2,441 | |||
Q2 Accelerate Share Repurchase Agreement [Member] | |||||
Accelerated Share Repurchases [Line Items] | |||||
Repurchases of Common Stock | $ 1,650 | ||||
Treasury Stock Shares Acquired | 1.1 | 9.7 | 10.8 |
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions |
Jul. 30, 2017 |
Jan. 29, 2017 |
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Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | 208 | 271 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative agreements - assets | $ 0 | $ 0 |
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Millions |
Jul. 30, 2017 |
Jan. 29, 2017 |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of senior notes | $ 24,005 | $ 22,013 |
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 | $ 26,194 | $ 23,620 |
Basic And Diluted Weighted Average Common Shares (Reconciliation Of Basic to Diluted Weighted Average Common Shares) (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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Reconciliation of Basic to Diluted Weighted Average Common Shares: | ||||
Basic Weighted Average Common Shares | 1,183 | 1,235 | 1,191 | 1,242 |
Effect of potentially dilutive securities - stock plans | 6 | 5 | 6 | 5 |
Diluted Weighted Average Common Shares | 1,189 | 1,240 | 1,197 | 1,247 |
Basic And Diluted Weighted Average Common Shares (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of anti-dilutive securities excluded from diluted weighted average common shares | 1 | 1 | 1 | 1 |
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