|
Delaware
|
|
|
|
95-3261426
|
|
(State or other jurisdiction incorporation or organization)
|
|
|
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(I.R.S. Employer Identification No.)
|
|
|
|
|
|
|
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2455 Paces Ferry Road
|
|
|
|
|
||
Atlanta,
|
Georgia
|
|
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30339
|
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(Address of principal executive offices)
|
|
|
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(Zip Code)
|
Securities registered pursuant to Section 12(b) of the Act:
|
||||
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, $0.05 Par Value Per Share
|
|
HD
|
|
New York Stock Exchange
|
|
|
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Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
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Item 3.
|
||
Item 4.
|
||
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Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
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Item 8.
|
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Item 9.
|
||
Item 9A.
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Item 9B.
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||
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Item 10.
|
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Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
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||
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Item 15.
|
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Item 16.
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||
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Term
|
|
Definition
|
ASR
|
|
Accelerated share repurchase
|
ASU
|
|
Accounting Standards Update
|
ASU No. 2014-09
|
|
Revenue from Contracts with Customers (Topic 606)
|
BODFS
|
|
Buy Online, Deliver From Store
|
BOPIS
|
|
Buy Online, Pick-up In Store
|
BORIS
|
|
Buy Online, Return In Store
|
BOSS
|
|
Buy Online, Ship to Store
|
CDP
|
|
The not-for-profit organization formerly known as the Carbon Disclosure Project
|
CFL
|
|
Compact fluorescent light
|
Comparable sales
|
|
|
DIFM
|
|
Do-It-For-Me
|
DIY
|
|
Do-It-Yourself
|
EH&S
|
|
Environmental, Health, and Safety
|
EPA
|
|
U.S. Environmental Protection Agency
|
ESPP
|
|
Employee Stock Purchase Plan
|
Exchange Act
|
|
Securities Exchange Act of 1934, as amended
|
FASB
|
|
Financial Accounting Standards Board
|
FIRST phone
|
|
Web-enabled handheld device used by associates in our stores
|
fiscal 2014
|
|
Fiscal year ended February 1, 2015 (includes 52 weeks)
|
fiscal 2015
|
|
Fiscal year ended January 31, 2016 (includes 52 weeks)
|
fiscal 2016
|
|
Fiscal year ended January 29, 2017 (includes 52 weeks)
|
fiscal 2017
|
|
Fiscal year ended January 28, 2018 (includes 52 weeks)
|
fiscal 2018
|
|
Fiscal year ended February 3, 2019 (includes 53 weeks)
|
fiscal 2019
|
|
Fiscal year ended February 2, 2020 (includes 52 weeks)
|
fiscal 2020
|
|
Fiscal year ended January 31, 2021 (includes 52 weeks)
|
FSC
|
|
Forest Stewardship Council
|
GAAP
|
|
U.S. generally accepted accounting principles
|
Interline
|
|
The legacy Interline Brands business, now operating as a part of The Home Depot Pro
|
IRS
|
|
Internal Revenue Service
|
LIBOR
|
|
London interbank offered rate
|
MD&A
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MRO
|
|
Maintenance, repair, and operations
|
NOPAT
|
|
Net operating profit after tax
|
NYSE
|
|
New York Stock Exchange
|
PLCC
|
|
Private label credit card
|
Pro
|
|
Professional customer
|
Restoration Plan
|
|
Home Depot FutureBuilder Restoration Plan
|
ROIC
|
|
Return on invested capital
|
SEC
|
|
Securities and Exchange Commission
|
Securities Act
|
|
Securities Act of 1933, as amended
|
SG&A
|
|
Selling, general, and administrative
|
Tax Act
|
|
Tax Cuts and Jobs Act of 2017
|
•
|
Connect associates to customer needs
|
•
|
Interconnected experience: connect stores to online, and online to stores
|
•
|
Connect products and services to customer needs
|
•
|
Connect product to shelf, site and customer
|
•
|
Innovate our business model and value chain
|
•
|
DIY Customers. These customers are typically home owners who purchase products and complete their own projects and installations. Our associates assist these customers both in our stores and through online resources and other media designed to provide product and project knowledge. We also offer a variety of
|
•
|
Professional Customers (or “Pros”). These customers are primarily professional renovators/remodelers, general contractors, handymen, property managers, building service contractors and specialty tradesmen, such as electricians, plumbers and painters. These customers build, renovate, remodel, repair and maintain residential properties, multifamily properties, hospitality properties and commercial facilities, including education facilities, healthcare facilities, government buildings and office buildings. We recognize the great value our Pro customers provide to their clients, and we strive to make the Pros’ job easier and help them grow their business. We believe that investments aimed at deepening our relationships with our Pro customers are yielding increased engagement and will continue to translate into incremental spend. As part of our continued commitment to invest in Pro customer relationships and the significant market opportunity these customers represent, we have created an enhanced Pro customer experience, both online and in-store.
|
•
|
Dividend Principle. We look to increase our dividend every year as we grow earnings.
|
•
|
Return on Invested Capital Principle. Our goal is to maintain a high return on invested capital, benchmarking all uses of excess liquidity against the value created for our shareholders through share repurchases.
|
•
|
Share Repurchase Principle. After meeting the needs of the business, we will look to return excess cash to shareholders in the form of share repurchases.
|
square footage in millions
|
Owned
|
|
Leased
|
|
Total Square Footage
|
|||
Stores (1)
|
90
|
%
|
|
10
|
%
|
|
238.1
|
|
Warehouses and distribution centers
|
4
|
%
|
|
96
|
%
|
|
60.0
|
|
Offices and other
|
23
|
%
|
|
77
|
%
|
|
4.4
|
|
Total
|
|
|
|
|
|
|
302.5
|
|
(1)
|
Our owned stores include those subject to ground leases.
|
U.S.
|
Stores
|
|
|
U.S.
|
Stores
|
|
Alabama
|
28
|
|
|
Montana
|
6
|
|
Alaska
|
7
|
|
|
Nebraska
|
8
|
|
Arizona
|
56
|
|
|
Nevada
|
21
|
|
Arkansas
|
14
|
|
|
New Hampshire
|
20
|
|
California
|
232
|
|
|
New Jersey
|
67
|
|
Colorado
|
46
|
|
|
New Mexico
|
13
|
|
Connecticut
|
30
|
|
|
New York
|
100
|
|
Delaware
|
9
|
|
|
North Carolina
|
40
|
|
District of Columbia
|
1
|
|
|
North Dakota
|
2
|
|
Florida
|
155
|
|
|
Ohio
|
70
|
|
Georgia
|
90
|
|
|
Oklahoma
|
16
|
|
Guam
|
1
|
|
|
Oregon
|
27
|
|
Hawaii
|
7
|
|
|
Pennsylvania
|
70
|
|
Idaho
|
11
|
|
|
Puerto Rico
|
9
|
|
Illinois
|
76
|
|
|
Rhode Island
|
8
|
|
Indiana
|
24
|
|
|
South Carolina
|
26
|
|
Iowa
|
10
|
|
|
South Dakota
|
1
|
|
Kansas
|
16
|
|
|
Tennessee
|
39
|
|
Kentucky
|
14
|
|
|
Texas
|
179
|
|
Louisiana
|
28
|
|
|
Utah
|
22
|
|
Maine
|
11
|
|
|
Vermont
|
3
|
|
Maryland
|
41
|
|
|
Virgin Islands
|
2
|
|
Massachusetts
|
45
|
|
|
Virginia
|
49
|
|
Michigan
|
70
|
|
|
Washington
|
45
|
|
Minnesota
|
33
|
|
|
West Virginia
|
6
|
|
Mississippi
|
14
|
|
|
Wisconsin
|
27
|
|
Missouri
|
34
|
|
|
Wyoming
|
5
|
|
|
|
|
Total U.S.
|
1,984
|
|
Canada
|
Stores
|
|
|
Mexico
|
Stores
|
|
Alberta
|
27
|
|
|
Aguascalientes
|
2
|
|
British Columbia
|
26
|
|
|
Baja California
|
6
|
|
Manitoba
|
6
|
|
|
Baja California Sur
|
2
|
|
New Brunswick
|
3
|
|
|
Campeche
|
2
|
|
Newfoundland
|
1
|
|
|
Chiapas
|
2
|
|
Nova Scotia
|
4
|
|
|
Chihuahua
|
5
|
|
Ontario
|
88
|
|
|
Coahuila
|
5
|
|
Prince Edward Island
|
1
|
|
|
Colima
|
2
|
|
Quebec
|
22
|
|
|
Distrito Federal
|
10
|
|
Saskatchewan
|
4
|
|
|
Durango
|
1
|
|
Total Canada
|
182
|
|
|
Guanajuato
|
5
|
|
|
|
|
Guerrero
|
2
|
|
|
|
|
|
Hidalgo
|
1
|
|
|
|
|
|
Jalisco
|
7
|
|
|
|
|
|
Michoacán
|
4
|
|
|
|
|
|
Morelos
|
3
|
|
|
|
|
|
Nayarit
|
1
|
|
|
|
|
|
Nuevo León
|
10
|
|
|
|
|
|
|
Oaxaca
|
1
|
|
|
|
|
Puebla
|
5
|
|
|
|
|
|
Querétaro
|
4
|
|
|
|
|
|
Quintana Roo
|
3
|
|
|
|
|
|
San Luis Potosí
|
2
|
|
|
|
|
|
Sinaloa
|
5
|
|
|
|
|
|
Sonora
|
4
|
|
|
|
|
|
State of Mexico
|
16
|
|
|
|
|
|
Tabasco
|
1
|
|
|
|
|
|
Tamaulipas
|
5
|
|
|
|
|
|
Tlaxcala
|
1
|
|
|
|
|
|
Veracruz
|
5
|
|
|
|
|
|
Yucatán
|
2
|
|
|
|
|
|
Zacatecas
|
1
|
|
|
|
|
|
Total Mexico
|
125
|
|
|
—●—
|
The Home Depot
|
—u—
|
S&P Retail Composite Index
|
—■—
|
S&P 500 Index
|
|
Fiscal Year Ended
|
||||||||||||||||||||||
|
February 1,
2015 |
|
January 31,
2016 |
|
January 29,
2017 |
|
January 28,
2018 |
|
February 3,
2019 |
|
February 2,
2020 |
||||||||||||
The Home Depot
|
$
|
100.00
|
|
|
$
|
122.88
|
|
|
$
|
138.04
|
|
|
$
|
211.56
|
|
|
$
|
192.43
|
|
|
$
|
244.53
|
|
S&P Retail Composite Index
|
100.00
|
|
|
116.80
|
|
|
138.46
|
|
|
201.09
|
|
|
211.74
|
|
|
255.38
|
|
||||||
S&P 500 Index
|
100.00
|
|
|
99.33
|
|
|
120.04
|
|
|
153.29
|
|
|
147.35
|
|
|
179.10
|
|
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)
|
||||||
November 4, 2019 – December 1, 2019
|
594,467
|
|
(3)
|
$
|
227.52
|
|
|
589,932
|
|
|
$
|
11,486,268,617
|
|
December 2, 2019 – December 29, 2019
|
4,488,532
|
|
|
218.35
|
|
|
4,487,586
|
|
|
10,312,547,946
|
|
||
December 30, 2019 – February 2, 2020
|
9,854,407
|
|
|
226.26
|
|
|
9,852,099
|
|
|
8,277,265,927
|
|
||
Total
|
14,937,406
|
|
|
223.93
|
|
|
14,929,617
|
|
|
|
(1)
|
These amounts include repurchases pursuant to our Amended and Restated 2005 Omnibus Stock Incentive Plan and our 1997 Omnibus Stock Incentive Plan (collectively, the “Plans”). Under the Plans, participants may surrender shares as payment of applicable tax withholding on the vesting of restricted stock and deferred share awards. Participants in the Plans may also exercise stock options by surrendering shares of common stock that the participants already own as payment of the exercise price. Shares so surrendered by participants in the Plans are repurchased pursuant to the terms of the Plans and applicable award agreement and not pursuant to publicly announced share repurchase programs.
|
(2)
|
In February 2019, our Board of Directors authorized a $15.0 billion share repurchase program that replaced the previous authorization. This program does not have a prescribed expiration date.
|
(3)
|
This amount includes shares received in the fourth quarter of fiscal 2019 related to the settlement of the ASR agreement entered into in the third quarter of fiscal 2019. See Note 6 to our consolidated financial statements for further discussion of our ASR agreements.
|
•
|
•
|
•
|
•
|
dollars in millions, except per share data
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Net sales
|
$
|
110,225
|
|
|
$
|
108,203
|
|
|
$
|
100,904
|
|
Net earnings
|
11,242
|
|
|
11,121
|
|
|
8,630
|
|
|||
|
|
|
|
|
|
||||||
Diluted earnings per share
|
$
|
10.25
|
|
|
$
|
9.73
|
|
|
$
|
7.29
|
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
13,723
|
|
|
$
|
13,038
|
|
|
$
|
12,031
|
|
Proceeds from long-term debt, net of discounts and premiums
|
3,420
|
|
|
3,466
|
|
|
2,991
|
|
|||
Repayments of long-term debt
|
1,070
|
|
|
1,209
|
|
|
543
|
|
|||
Repurchases of common stock
|
6,965
|
|
|
9,963
|
|
|
8,000
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|||||||||||||||
2019
|
|
2018
|
|
2017
|
||||||||||||||||
dollars in millions
|
$
|
|
% of Net Sales
|
|
$
|
|
% of Net Sales
|
|
$
|
|
% of Net Sales
|
|||||||||
Net sales
|
$
|
110,225
|
|
|
|
|
$
|
108,203
|
|
|
|
|
$
|
100,904
|
|
|
|
|||
Gross profit
|
37,572
|
|
|
34.1
|
%
|
|
37,160
|
|
|
34.3
|
%
|
|
34,356
|
|
|
34.0
|
%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative
|
19,740
|
|
|
17.9
|
|
|
19,513
|
|
|
18.0
|
|
|
17,864
|
|
|
17.7
|
|
|||
Depreciation and amortization
|
1,989
|
|
|
1.8
|
|
|
1,870
|
|
|
1.7
|
|
|
1,811
|
|
|
1.8
|
|
|||
Impairment loss
|
—
|
|
|
—
|
|
|
247
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses
|
21,729
|
|
|
19.7
|
|
|
21,630
|
|
|
20.0
|
|
|
19,675
|
|
|
19.5
|
|
|||
Operating income
|
15,843
|
|
|
14.4
|
|
|
15,530
|
|
|
14.4
|
|
|
14,681
|
|
|
14.5
|
|
|||
Interest and other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest and investment income
|
(73
|
)
|
|
(0.1
|
)
|
|
(93
|
)
|
|
(0.1
|
)
|
|
(74
|
)
|
|
(0.1
|
)
|
|||
Interest expense
|
1,201
|
|
|
1.1
|
|
|
1,051
|
|
|
1.0
|
|
|
1,057
|
|
|
1.0
|
|
|||
Other
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Interest and other, net
|
1,128
|
|
|
1.0
|
|
|
974
|
|
|
0.9
|
|
|
983
|
|
|
1.0
|
|
|||
Earnings before provision for income taxes
|
14,715
|
|
|
13.3
|
|
|
14,556
|
|
|
13.5
|
|
|
13,698
|
|
|
13.6
|
|
|||
Provision for income taxes
|
3,473
|
|
|
3.2
|
|
|
3,435
|
|
|
3.2
|
|
|
5,068
|
|
|
5.0
|
|
|||
Net earnings
|
$
|
11,242
|
|
|
10.2
|
%
|
|
$
|
11,121
|
|
|
10.3
|
%
|
|
$
|
8,630
|
|
|
8.6
|
%
|
|
|
|
% Change
|
||||||||||||||
Selected financial and sales data:
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||||
2019
|
|
2018
|
|
2017
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
|||||||||
Comparable sales increase (1) (2)
|
3.5
|
%
|
|
5.2
|
%
|
|
6.8
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Comparable customer transactions increase (1) (3)
|
1.1
|
%
|
|
1.0
|
%
|
|
2.2
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Comparable average ticket increase (1) (3)
|
2.5
|
%
|
|
4.2
|
%
|
|
4.5
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Customer transactions (in millions) (3) (4)
|
1,616.0
|
|
|
1,620.8
|
|
|
1,578.6
|
|
|
(0.3
|
)%
|
|
2.7
|
%
|
|||
Average ticket (3) (4) (5)
|
$
|
67.30
|
|
|
$
|
65.74
|
|
|
$
|
63.06
|
|
|
2.4
|
%
|
|
4.2
|
%
|
Sales per retail square foot (3) (4) (6)
|
$
|
454.82
|
|
|
$
|
446.86
|
|
|
$
|
417.02
|
|
|
1.8
|
%
|
|
7.2
|
%
|
Diluted earnings per share
|
$
|
10.25
|
|
|
$
|
9.73
|
|
|
$
|
7.29
|
|
|
5.3
|
%
|
|
33.5
|
%
|
(1)
|
Fiscal 2019 compares the 52 week period in fiscal 2019 to weeks 2 through 53 in fiscal 2018. Fiscal 2018 calculations do not include results from the 53rd week of fiscal 2018 and compare weeks 1 through 52 in fiscal 2018 to the 52 week period in fiscal 2017.
|
(2)
|
Comparable sales for fiscal 2017 do not include results for Interline.
|
(3)
|
The calculations do not include results for Interline.
|
(4)
|
The 53rd week of fiscal 2018 increased customer transactions by 24.5 million, added $0.01 to average ticket, and increased sales per retail square foot by $6.87.
|
(5)
|
Average ticket represents the average price paid per transaction and is used by management to monitor the performance of the Company, as it represents a primary driver in measuring sales performance.
|
(6)
|
Sales per retail square foot represents sales divided by the retail store square footage. Sales per retail square foot is a measure of the efficiency of sales based on the total square footage of our stores and is used by management to monitor the performance of the Company as an indicator of the productivity of owned and leased square footage for retail operations.
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
dollars in millions
|
2019
|
|
2018
|
|
2017
|
||||||
Net earnings
|
$
|
11,242
|
|
|
$
|
11,121
|
|
|
$
|
8,630
|
|
Interest and other, net
|
1,128
|
|
|
974
|
|
|
983
|
|
|||
Provision for income taxes
|
3,473
|
|
|
3,435
|
|
|
5,068
|
|
|||
Operating income
|
15,843
|
|
|
15,530
|
|
|
14,681
|
|
|||
Income tax adjustment (1)
|
(3,739
|
)
|
|
(3,665
|
)
|
|
(5,432
|
)
|
|||
NOPAT
|
$
|
12,104
|
|
|
$
|
11,865
|
|
|
$
|
9,249
|
|
|
|
|
|
|
|
||||||
Average debt and equity (2)
|
$
|
26,686
|
|
|
$
|
26,492
|
|
|
$
|
27,074
|
|
|
|
|
|
|
|
||||||
ROIC
|
45.4
|
%
|
|
44.8
|
%
|
|
34.2
|
%
|
(1)
|
Income tax adjustment is defined as operating income multiplied by our effective tax rate for the trailing twelve months.
|
(2)
|
The beginning balance of equity for fiscal 2019 has been adjusted to reflect an immaterial opening balance sheet adjustment due to the adoption of ASU No. 2016-02, Leases, in fiscal 2019.The beginning balance of equity for fiscal 2018 has been adjusted to reflect an opening balance sheet adjustment of $75 million due to the adoption of ASU No. 2014-09, Revenue from Contracts with Customers, in fiscal 2018.
|
|
Payments Due by Period
|
||||||||||||||||||
in millions
|
Total
|
|
Less than
1 Year
|
|
1 to
3 Years
|
|
3 to
5 Years
|
|
More Than
5 Years
|
||||||||||
Short-term debt
|
$
|
974
|
|
|
$
|
974
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt – principal payments (1)
|
29,500
|
|
|
1,750
|
|
|
4,600
|
|
|
2,100
|
|
|
21,050
|
|
|||||
Long-term debt – interest payments (2)
|
17,709
|
|
|
1,083
|
|
|
1,951
|
|
|
1,775
|
|
|
12,900
|
|
|||||
Finance lease obligations (3)
|
1,773
|
|
|
172
|
|
|
341
|
|
|
312
|
|
|
948
|
|
|||||
Operating lease obligations (3)
|
6,680
|
|
|
955
|
|
|
1,647
|
|
|
1,256
|
|
|
2,822
|
|
|||||
Purchase obligations (4)
|
1,400
|
|
|
971
|
|
|
336
|
|
|
87
|
|
|
6
|
|
|||||
Unrecognized tax benefits (5)
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
58,061
|
|
|
$
|
5,930
|
|
|
$
|
8,875
|
|
|
$
|
5,530
|
|
|
$
|
37,726
|
|
(1)
|
Excludes finance lease obligations.
|
(2)
|
Interest payments are calculated at current interest rates, including the impact of active interest rate swaps.
|
(3)
|
Includes finance and operating lease imputed interest of $608 million and $786 million, respectively.
|
(4)
|
Purchase obligations include all legally binding contracts such as firm commitments for inventory purchases, utility purchases, capital expenditures, software acquisitions and license commitments, and legally binding service contracts. Purchase orders that are not binding agreements are excluded from the table above.
|
(5)
|
Excludes $448 million of noncurrent unrecognized tax benefits due to uncertainty regarding the timing of future cash tax payments.
|
•
|
Assessing the actuarial methods used by the Company’s third-party actuary, for consistency with generally accepted actuarial standards and practices;
|
•
|
Evaluating the key assumptions by comparing to historical data; and
|
•
|
Developing an independent actuarial range of certain self-insurance liabilities, based on the Company’s underlying historical paid and incurred loss data, and comparing the range to the Company’s estimated liabilities.
|
•
|
Assessing the transfer pricing studies for compliance with applicable laws and regulations;
|
•
|
Evaluating the Company’s interpretation of tax laws by developing an independent assessment based on our understanding and interpretation of the tax laws;
|
•
|
Inspecting settlements with applicable taxing authorities, and evaluating the expiration of statutes of limitations; and
|
•
|
Analyzing the Company’s assumptions and data used to determine the amount of tax benefits to recognize as well as testing the Company’s calculations and comparing the results to the Company’s assessment.
|
in millions, except per share data
|
February 2,
2020 |
|
February 3,
2019 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,133
|
|
|
$
|
1,778
|
|
Receivables, net
|
2,106
|
|
|
1,936
|
|
||
Merchandise inventories
|
14,531
|
|
|
13,925
|
|
||
Other current assets
|
1,040
|
|
|
890
|
|
||
Total current assets
|
19,810
|
|
|
18,529
|
|
||
Net property and equipment
|
22,770
|
|
|
22,375
|
|
||
Operating lease right-of-use assets
|
5,595
|
|
|
—
|
|
||
Goodwill
|
2,254
|
|
|
2,252
|
|
||
Other assets
|
807
|
|
|
847
|
|
||
Total assets
|
$
|
51,236
|
|
|
$
|
44,003
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt
|
$
|
974
|
|
|
$
|
1,339
|
|
Accounts payable
|
7,787
|
|
|
7,755
|
|
||
Accrued salaries and related expenses
|
1,494
|
|
|
1,506
|
|
||
Sales taxes payable
|
605
|
|
|
656
|
|
||
Deferred revenue
|
2,116
|
|
|
1,782
|
|
||
Income taxes payable
|
55
|
|
|
11
|
|
||
Current installments of long-term debt
|
1,839
|
|
|
1,056
|
|
||
Current operating lease liabilities
|
828
|
|
|
—
|
|
||
Other accrued expenses
|
2,677
|
|
|
2,611
|
|
||
Total current liabilities
|
18,375
|
|
|
16,716
|
|
||
Long-term debt, excluding current installments
|
28,670
|
|
|
26,807
|
|
||
Long-term operating lease liabilities
|
5,066
|
|
|
—
|
|
||
Deferred income taxes
|
706
|
|
|
491
|
|
||
Other long-term liabilities
|
1,535
|
|
|
1,867
|
|
||
Total liabilities
|
54,352
|
|
|
45,881
|
|
||
|
|
|
|
||||
Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,786 shares at February 2, 2020 and 1,782 shares at February 3, 2019; outstanding: 1,077 shares at February 2, 2020 and 1,105 shares at February 3, 2019
|
89
|
|
|
89
|
|
||
Paid-in capital
|
11,001
|
|
|
10,578
|
|
||
Retained earnings
|
51,729
|
|
|
46,423
|
|
||
Accumulated other comprehensive loss
|
(739
|
)
|
|
(772
|
)
|
||
Treasury stock, at cost, 709 shares at February 2, 2020 and 677 shares at February 3, 2019
|
(65,196
|
)
|
|
(58,196
|
)
|
||
Total stockholders’ (deficit) equity
|
(3,116
|
)
|
|
(1,878
|
)
|
||
Total liabilities and stockholders’ equity
|
$
|
51,236
|
|
|
$
|
44,003
|
|
in millions, except per share data
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Net sales
|
$
|
110,225
|
|
|
$
|
108,203
|
|
|
$
|
100,904
|
|
Cost of sales
|
72,653
|
|
|
71,043
|
|
|
66,548
|
|
|||
Gross profit
|
37,572
|
|
|
37,160
|
|
|
34,356
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Selling, general and administrative
|
19,740
|
|
|
19,513
|
|
|
17,864
|
|
|||
Depreciation and amortization
|
1,989
|
|
|
1,870
|
|
|
1,811
|
|
|||
Impairment loss
|
—
|
|
|
247
|
|
|
—
|
|
|||
Total operating expenses
|
21,729
|
|
|
21,630
|
|
|
19,675
|
|
|||
Operating income
|
15,843
|
|
|
15,530
|
|
|
14,681
|
|
|||
Interest and other (income) expense:
|
|
|
|
|
|
||||||
Interest and investment income
|
(73
|
)
|
|
(93
|
)
|
|
(74
|
)
|
|||
Interest expense
|
1,201
|
|
|
1,051
|
|
|
1,057
|
|
|||
Other
|
—
|
|
|
16
|
|
|
—
|
|
|||
Interest and other, net
|
1,128
|
|
|
974
|
|
|
983
|
|
|||
Earnings before provision for income taxes
|
14,715
|
|
|
14,556
|
|
|
13,698
|
|
|||
Provision for income taxes
|
3,473
|
|
|
3,435
|
|
|
5,068
|
|
|||
Net earnings
|
$
|
11,242
|
|
|
$
|
11,121
|
|
|
$
|
8,630
|
|
|
|
|
|
|
|
||||||
Basic weighted average common shares
|
1,093
|
|
|
1,137
|
|
|
1,178
|
|
|||
Basic earnings per share
|
$
|
10.29
|
|
|
$
|
9.78
|
|
|
$
|
7.33
|
|
|
|
|
|
|
|
||||||
Diluted weighted average common shares
|
1,097
|
|
|
1,143
|
|
|
1,184
|
|
|||
Diluted earnings per share
|
$
|
10.25
|
|
|
$
|
9.73
|
|
|
$
|
7.29
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
in millions
|
2019
|
|
2018
|
|
2017
|
||||||
Net earnings
|
$
|
11,242
|
|
|
$
|
11,121
|
|
|
$
|
8,630
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
53
|
|
|
(267
|
)
|
|
311
|
|
|||
Cash flow hedges, net of tax
|
8
|
|
|
53
|
|
|
(1
|
)
|
|||
Other
|
3
|
|
|
8
|
|
|
(9
|
)
|
|||
Total other comprehensive income (loss)
|
64
|
|
|
(206
|
)
|
|
301
|
|
|||
Comprehensive income
|
$
|
11,306
|
|
|
$
|
10,915
|
|
|
$
|
8,931
|
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Common Stock:
|
|
|
|
|
|
||||||
Balance at beginning of year
|
$
|
89
|
|
|
$
|
89
|
|
|
$
|
88
|
|
Shares issued under employee stock plans
|
—
|
|
|
—
|
|
|
1
|
|
|||
Balance at end of year
|
89
|
|
|
89
|
|
|
89
|
|
|||
|
|
|
|
|
|
||||||
Paid-in Capital:
|
|
|
|
|
|
||||||
Balance at beginning of year
|
10,578
|
|
|
10,192
|
|
|
9,787
|
|
|||
Shares issued under employee stock plans
|
172
|
|
|
104
|
|
|
132
|
|
|||
Stock-based compensation expense
|
251
|
|
|
282
|
|
|
273
|
|
|||
Balance at end of year
|
11,001
|
|
|
10,578
|
|
|
10,192
|
|
|||
|
|
|
|
|
|
||||||
Retained Earnings:
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
46,423
|
|
|
39,935
|
|
|
35,519
|
|
|||
Cumulative effect of accounting changes
|
26
|
|
|
75
|
|
|
—
|
|
|||
Net earnings
|
11,242
|
|
|
11,121
|
|
|
8,630
|
|
|||
Cash dividends
|
(5,958
|
)
|
|
(4,704
|
)
|
|
(4,212
|
)
|
|||
Other
|
(4
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|||
Balance at end of year
|
51,729
|
|
|
46,423
|
|
|
39,935
|
|
|||
|
|
|
|
|
|
||||||
Accumulated Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
(772
|
)
|
|
(566
|
)
|
|
(867
|
)
|
|||
Cumulative effect of accounting changes
|
(31
|
)
|
|
—
|
|
|
—
|
|
|||
Foreign currency translation adjustments
|
53
|
|
|
(267
|
)
|
|
311
|
|
|||
Cash flow hedges, net of tax
|
8
|
|
|
53
|
|
|
(1
|
)
|
|||
Other
|
3
|
|
|
8
|
|
|
(9
|
)
|
|||
Balance at end of year
|
(739
|
)
|
|
(772
|
)
|
|
(566
|
)
|
|||
|
|
|
|
|
|
||||||
Treasury Stock:
|
|
|
|
|
|
|
|
||||
Balance at beginning of year
|
(58,196
|
)
|
|
(48,196
|
)
|
|
(40,194
|
)
|
|||
Repurchases of common stock
|
(7,000
|
)
|
|
(10,000
|
)
|
|
(8,002
|
)
|
|||
Balance at end of year
|
(65,196
|
)
|
|
(58,196
|
)
|
|
(48,196
|
)
|
|||
Total stockholders’ (deficit) equity
|
$
|
(3,116
|
)
|
|
$
|
(1,878
|
)
|
|
$
|
1,454
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
in millions
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
||||||
Net earnings
|
$
|
11,242
|
|
|
$
|
11,121
|
|
|
$
|
8,630
|
|
Reconciliation of net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
2,296
|
|
|
2,152
|
|
|
2,062
|
|
|||
Stock-based compensation expense
|
251
|
|
|
282
|
|
|
273
|
|
|||
Impairment loss
|
—
|
|
|
247
|
|
|
—
|
|
|||
Changes in receivables, net
|
(170
|
)
|
|
33
|
|
|
139
|
|
|||
Changes in merchandise inventories
|
(593
|
)
|
|
(1,244
|
)
|
|
(84
|
)
|
|||
Changes in other current assets
|
(135
|
)
|
|
(257
|
)
|
|
(10
|
)
|
|||
Changes in accounts payable and accrued expenses
|
68
|
|
|
743
|
|
|
352
|
|
|||
Changes in deferred revenue
|
334
|
|
|
80
|
|
|
128
|
|
|||
Changes in income taxes payable
|
44
|
|
|
(42
|
)
|
|
29
|
|
|||
Changes in deferred income taxes
|
202
|
|
|
26
|
|
|
92
|
|
|||
Other operating activities
|
184
|
|
|
(103
|
)
|
|
420
|
|
|||
Net cash provided by operating activities
|
13,723
|
|
|
13,038
|
|
|
12,031
|
|
|||
|
|
|
|
|
|
||||||
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(2,678
|
)
|
|
(2,442
|
)
|
|
(1,897
|
)
|
|||
Payments for businesses acquired, net
|
—
|
|
|
(21
|
)
|
|
(374
|
)
|
|||
Proceeds from sales of property and equipment
|
37
|
|
|
33
|
|
|
47
|
|
|||
Other investing activities
|
(12
|
)
|
|
14
|
|
|
(4
|
)
|
|||
Net cash used in investing activities
|
(2,653
|
)
|
|
(2,416
|
)
|
|
(2,228
|
)
|
|||
|
|
|
|
|
|
||||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
||||||
(Repayments of) proceeds from short-term debt, net
|
(365
|
)
|
|
(220
|
)
|
|
850
|
|
|||
Proceeds from long-term debt, net of discounts and premiums
|
3,420
|
|
|
3,466
|
|
|
2,991
|
|
|||
Repayments of long-term debt
|
(1,070
|
)
|
|
(1,209
|
)
|
|
(543
|
)
|
|||
Repurchases of common stock
|
(6,965
|
)
|
|
(9,963
|
)
|
|
(8,000
|
)
|
|||
Proceeds from sales of common stock
|
280
|
|
|
236
|
|
|
255
|
|
|||
Cash dividends
|
(5,958
|
)
|
|
(4,704
|
)
|
|
(4,212
|
)
|
|||
Other financing activities
|
(176
|
)
|
|
(26
|
)
|
|
(211
|
)
|
|||
Net cash used in financing activities
|
(10,834
|
)
|
|
(12,420
|
)
|
|
(8,870
|
)
|
|||
Change in cash and cash equivalents
|
236
|
|
|
(1,798
|
)
|
|
933
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
119
|
|
|
(19
|
)
|
|
124
|
|
|||
Cash and cash equivalents at beginning of year
|
1,778
|
|
|
3,595
|
|
|
2,538
|
|
|||
Cash and cash equivalents at end of year
|
$
|
2,133
|
|
|
$
|
1,778
|
|
|
$
|
3,595
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosures:
|
|
|
|
|
|
||||||
Cash paid for income taxes
|
$
|
3,220
|
|
|
$
|
3,774
|
|
|
$
|
4,732
|
|
Cash paid for interest, net of interest capitalized
|
1,112
|
|
|
1,035
|
|
|
991
|
|
|||
Non-cash capital expenditures
|
136
|
|
|
248
|
|
|
150
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
in millions
|
February 2,
2020 |
|
February 3,
2019 |
||||
Card receivables
|
$
|
778
|
|
|
$
|
696
|
|
Rebate receivables
|
668
|
|
|
660
|
|
||
Customer receivables
|
292
|
|
|
284
|
|
||
Other receivables
|
368
|
|
|
296
|
|
||
Receivables, net
|
$
|
2,106
|
|
|
$
|
1,936
|
|
|
Life
|
Buildings
|
5 – 45 years
|
Furniture, fixtures and equipment
|
2 – 20 years
|
Leasehold improvements
|
5 – 45 years
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Goodwill, balance at beginning of year
|
$
|
2,252
|
|
|
$
|
2,275
|
|
|
$
|
2,093
|
|
Acquisitions (1)
|
—
|
|
|
4
|
|
|
164
|
|
|||
Dispositions
|
—
|
|
|
(15
|
)
|
|
—
|
|
|||
Other (2)
|
2
|
|
|
(12
|
)
|
|
18
|
|
|||
Goodwill, balance at end of year
|
$
|
2,254
|
|
|
$
|
2,252
|
|
|
$
|
2,275
|
|
(1)
|
Includes purchase price allocation adjustments.
|
(2)
|
Primarily reflects the impact of foreign currency translation.
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Specific, incremental, and identifiable co-op advertising allowances
|
$
|
282
|
|
|
$
|
235
|
|
|
$
|
198
|
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Gross advertising expense
|
$
|
1,186
|
|
|
$
|
1,156
|
|
|
$
|
995
|
|
2.
|
NET SALES AND SEGMENT REPORTING
|
in millions
|
February 2,
2020 |
|
February 3,
2019 |
|
January 28,
2018 |
||||||
Long-lived assets – in the U.S.
|
$
|
20,302
|
|
|
$
|
19,930
|
|
|
$
|
19,526
|
|
Long-lived assets – outside the U.S.
|
2,468
|
|
|
2,445
|
|
|
2,549
|
|
|||
Total long-lived assets
|
$
|
22,770
|
|
|
$
|
22,375
|
|
|
$
|
22,075
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
in millions
|
2019
|
|
2018
|
|
2017
|
||||||
Net sales – in the U.S.
|
$
|
101,333
|
|
|
$
|
99,386
|
|
|
$
|
92,413
|
|
Net sales – outside the U.S.
|
8,892
|
|
|
8,817
|
|
|
8,491
|
|
|||
Net sales
|
$
|
110,225
|
|
|
$
|
108,203
|
|
|
$
|
100,904
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
in millions
|
2019
|
|
2018
|
|
2017
|
||||||
Net sales – products
|
$
|
105,194
|
|
|
$
|
102,933
|
|
|
$
|
95,956
|
|
Net sales – services
|
5,031
|
|
|
5,270
|
|
|
4,948
|
|
|||
Net sales
|
$
|
110,225
|
|
|
$
|
108,203
|
|
|
$
|
100,904
|
|
Major Product Line
|
|
Merchandising Departments
|
Building Materials
|
|
Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing
|
Décor
|
|
Appliances, Décor/Storage, Flooring, Kitchen and Bath, and Paint
|
Hardlines
|
|
Hardware, Indoor Garden, Outdoor Garden, and Tools
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
in millions
|
2019
|
|
2018
|
|
2017
|
||||||
Building Materials
|
$
|
39,338
|
|
|
$
|
39,883
|
|
|
$
|
37,296
|
|
Décor
|
37,390
|
|
|
36,273
|
|
|
33,593
|
|
|||
Hardlines
|
33,497
|
|
|
32,047
|
|
|
30,015
|
|
|||
Net sales
|
$
|
110,225
|
|
|
$
|
108,203
|
|
|
$
|
100,904
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
dollars in millions
|
Net
Sales |
|
% of
Net Sales |
|
Net
Sales |
|
% of
Net Sales |
|
Net
Sales |
|
% of
Net Sales |
|||||||||
Appliances
|
$
|
9,852
|
|
|
8.9
|
%
|
|
$
|
9,027
|
|
|
8.3
|
%
|
|
$
|
8,167
|
|
|
8.1
|
%
|
Building Materials
|
7,712
|
|
|
7.0
|
|
|
7,770
|
|
|
7.2
|
|
|
7,266
|
|
|
7.2
|
|
|||
Décor/Storage
|
3,758
|
|
|
3.4
|
|
|
3,583
|
|
|
3.3
|
|
|
3,175
|
|
|
3.1
|
|
|||
Electrical/Lighting
|
9,844
|
|
|
8.9
|
|
|
9,941
|
|
|
9.2
|
|
|
9,441
|
|
|
9.4
|
|
|||
Flooring
|
7,443
|
|
|
6.8
|
|
|
7,494
|
|
|
6.9
|
|
|
6,992
|
|
|
6.9
|
|
|||
Hardware
|
6,381
|
|
|
5.8
|
|
|
6,203
|
|
|
5.7
|
|
|
5,878
|
|
|
5.8
|
|
|||
Indoor Garden
|
10,989
|
|
|
10.0
|
|
|
10,450
|
|
|
9.7
|
|
|
9,785
|
|
|
9.7
|
|
|||
Kitchen and Bath
|
7,717
|
|
|
7.0
|
|
|
7,728
|
|
|
7.1
|
|
|
7,275
|
|
|
7.2
|
|
|||
Lumber
|
7,894
|
|
|
7.2
|
|
|
8,393
|
|
|
7.8
|
|
|
7,797
|
|
|
7.7
|
|
|||
Millwork
|
5,757
|
|
|
5.2
|
|
|
5,757
|
|
|
5.3
|
|
|
5,382
|
|
|
5.3
|
|
|||
Outdoor Garden
|
7,564
|
|
|
6.9
|
|
|
7,259
|
|
|
6.7
|
|
|
6,984
|
|
|
6.9
|
|
|||
Paint
|
8,620
|
|
|
7.8
|
|
|
8,441
|
|
|
7.8
|
|
|
7,984
|
|
|
7.9
|
|
|||
Plumbing
|
8,131
|
|
|
7.4
|
|
|
8,022
|
|
|
7.4
|
|
|
7,410
|
|
|
7.3
|
|
|||
Tools
|
8,563
|
|
|
7.8
|
|
|
8,135
|
|
|
7.5
|
|
|
7,368
|
|
|
7.3
|
|
|||
Total
|
$
|
110,225
|
|
|
100.0
|
%
|
|
$
|
108,203
|
|
|
100.0
|
%
|
|
$
|
100,904
|
|
|
100.0
|
%
|
3.
|
PROPERTY AND LEASES
|
in millions
|
February 2,
2020 |
|
February 3,
2019 |
||||
Land
|
$
|
8,390
|
|
|
$
|
8,363
|
|
Buildings
|
18,432
|
|
|
18,199
|
|
||
Furniture, fixtures, and equipment
|
13,666
|
|
|
12,460
|
|
||
Leasehold improvements
|
1,789
|
|
|
1,705
|
|
||
Construction in progress
|
1,005
|
|
|
820
|
|
||
Finance leases
|
1,578
|
|
|
1,392
|
|
||
Property and equipment, at cost
|
44,860
|
|
|
42,939
|
|
||
Less accumulated depreciation and finance lease amortization
|
22,090
|
|
|
20,564
|
|
||
Net property and equipment
|
$
|
22,770
|
|
|
$
|
22,375
|
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Depreciation and finance lease amortization expense
|
$
|
2,223
|
|
|
$
|
2,076
|
|
|
$
|
1,983
|
|
in millions
|
Consolidated Balance Sheet Caption
|
February 2,
2020 |
||
Assets:
|
|
|
||
Operating lease assets
|
Operating lease right-of-use assets
|
$
|
5,595
|
|
Finance lease assets (1)
|
Net property and equipment
|
934
|
|
|
Total lease assets
|
|
$
|
6,529
|
|
|
|
|
||
Liabilities:
|
|
|
||
Current:
|
|
|
||
Operating lease liabilities
|
Current operating lease liabilities
|
$
|
828
|
|
Finance lease liabilities
|
Current installments of long-term debt
|
84
|
|
|
Long-term:
|
|
|
||
Operating lease liabilities
|
Long-term operating lease liabilities
|
5,066
|
|
|
Finance lease liabilities
|
Long-term debt, excluding current installments
|
1,081
|
|
|
Total lease liabilities
|
|
$
|
7,059
|
|
(1)
|
Finance lease assets are recorded net of accumulated amortization of $644 million as of February 2, 2020.
|
|
|
Fiscal
|
||
in millions
|
Consolidated Statement of Earnings Caption
|
2019
|
||
Operating lease cost
|
Selling, general and administrative
|
$
|
827
|
|
Finance lease cost:
|
|
|
||
Amortization of leased assets
|
Depreciation and amortization
|
86
|
|
|
Interest on lease liabilities
|
Interest expense
|
92
|
|
|
Short-term lease cost
|
Selling, general and administrative
|
98
|
|
|
Variable lease cost
|
Selling, general and administrative
|
241
|
|
|
Sublease income
|
Selling, general and administrative
|
(14
|
)
|
|
Net lease cost
|
|
$
|
1,330
|
|
|
February 2,
2020 |
|
Weighted Average Remaining Lease Term (Years):
|
|
|
Operating leases
|
10
|
|
Finance leases
|
12
|
|
|
|
|
Weighted Average Discount Rate:
|
|
|
Operating leases
|
3.1
|
%
|
Finance leases
|
10.4
|
%
|
in millions
|
Operating
Leases |
|
Finance
Leases |
||||
Fiscal 2020
|
$
|
955
|
|
|
$
|
172
|
|
Fiscal 2021
|
875
|
|
|
171
|
|
||
Fiscal 2022
|
772
|
|
|
170
|
|
||
Fiscal 2023
|
677
|
|
|
164
|
|
||
Fiscal 2024
|
579
|
|
|
148
|
|
||
Thereafter
|
2,822
|
|
|
948
|
|
||
Total lease payments
|
6,680
|
|
|
1,773
|
|
||
Less imputed interest
|
786
|
|
|
608
|
|
||
Present value of lease liabilities
|
$
|
5,894
|
|
|
$
|
1,165
|
|
in millions
|
Operating
Leases |
|
Capital
Leases |
||||
Fiscal 2019
|
$
|
976
|
|
|
$
|
150
|
|
Fiscal 2020
|
912
|
|
|
167
|
|
||
Fiscal 2021
|
792
|
|
|
143
|
|
||
Fiscal 2022
|
682
|
|
|
142
|
|
||
Fiscal 2023
|
584
|
|
|
137
|
|
||
Thereafter
|
3,090
|
|
|
970
|
|
||
|
$
|
7,036
|
|
|
1,709
|
|
|
Less imputed interest
|
|
|
660
|
|
|||
Net present value of capital lease obligations
|
|
|
1,049
|
|
|||
Less current installments
|
|
|
57
|
|
|||
Long-term capital lease obligations, excluding current installments
|
|
|
$
|
992
|
|
|
Fiscal
|
||
in millions
|
2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows – operating leases
|
$
|
1,003
|
|
Operating cash flows – finance leases
|
92
|
|
|
Financing cash flows – finance leases
|
70
|
|
|
Lease assets obtained in exchange for new operating lease liabilities
|
748
|
|
|
Lease assets obtained in exchange for new finance lease liabilities
|
186
|
|
4.
|
DEBT AND DERIVATIVE INSTRUMENTS
|
dollars in millions
|
February 2,
2020 |
|
February 3,
2019 |
||||
Weighted average interest rate
|
1.56
|
%
|
|
2.41
|
%
|
||
Balance outstanding at fiscal year-end
|
$
|
974
|
|
|
$
|
1,339
|
|
Maximum amount outstanding at any month-end
|
$
|
2,097
|
|
|
$
|
2,264
|
|
Average daily short-term borrowings
|
$
|
624
|
|
|
$
|
621
|
|
|
|
|
|
|
Carrying Amount
|
||||||||
in millions
|
Interest
Payable
|
|
Principal
Amount
|
|
February 2,
2020 |
|
February 3,
2019 |
||||||
2.00% Senior notes due June 2019
|
Semi-annually
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
999
|
|
Floating rate senior notes due June 2020
|
Quarterly
|
|
500
|
|
|
500
|
|
|
499
|
|
|||
1.80% Senior notes due June 2020
|
Semi-annually
|
|
750
|
|
|
750
|
|
|
749
|
|
|||
3.95% Senior notes due September 2020
|
Semi-annually
|
|
500
|
|
|
506
|
|
|
499
|
|
|||
4.40% Senior notes due April 2021
|
Semi-annually
|
|
1,000
|
|
|
999
|
|
|
999
|
|
|||
2.00% Senior notes due April 2021
|
Semi-annually
|
|
1,350
|
|
|
1,348
|
|
|
1,345
|
|
|||
Floating rate senior notes due March 2022
|
Quarterly
|
|
300
|
|
|
299
|
|
|
299
|
|
|||
3.25% Senior notes due March 2022
|
Semi-annually
|
|
700
|
|
|
698
|
|
|
696
|
|
|||
2.625% Senior notes due June 2022
|
Semi-annually
|
|
1,250
|
|
|
1,246
|
|
|
1,245
|
|
|||
2.70% Senior notes due April 2023
|
Semi-annually
|
|
1,000
|
|
|
998
|
|
|
997
|
|
|||
3.75% Senior notes due February 2024
|
Semi-annually
|
|
1,100
|
|
|
1,095
|
|
|
1,094
|
|
|||
3.35% Senior notes due September 2025
|
Semi-annually
|
|
1,000
|
|
|
996
|
|
|
995
|
|
|||
3.00% Senior notes due April 2026
|
Semi-annually
|
|
1,300
|
|
|
1,290
|
|
|
1,288
|
|
|||
2.125% Senior notes due September 2026
|
Semi-annually
|
|
1,000
|
|
|
989
|
|
|
987
|
|
|||
2.80% Senior notes due September 2027
|
Semi-annually
|
|
1,000
|
|
|
1,007
|
|
|
981
|
|
|||
3.90% Senior notes due December 2028
|
Semi-annually
|
|
1,000
|
|
|
1,059
|
|
|
1,005
|
|
|||
2.95% Senior notes due June 2029
|
Semi-annually
|
|
1,750
|
|
|
1,797
|
|
|
—
|
|
|||
5.875% Senior notes due December 2036
|
Semi-annually
|
|
3,000
|
|
|
2,953
|
|
|
2,951
|
|
|||
5.40% Senior notes due September 2040
|
Semi-annually
|
|
500
|
|
|
495
|
|
|
495
|
|
|||
5.95% Senior notes due April 2041
|
Semi-annually
|
|
1,000
|
|
|
989
|
|
|
989
|
|
|||
4.20% Senior notes due April 2043
|
Semi-annually
|
|
1,000
|
|
|
989
|
|
|
989
|
|
|||
4.875% Senior notes due February 2044
|
Semi-annually
|
|
1,000
|
|
|
979
|
|
|
979
|
|
|||
4.40% Senior notes due March 2045
|
Semi-annually
|
|
1,000
|
|
|
978
|
|
|
977
|
|
|||
4.25% Senior notes due April 2046
|
Semi-annually
|
|
1,600
|
|
|
1,585
|
|
|
1,585
|
|
|||
3.90% Senior notes due June 2047
|
Semi-annually
|
|
1,150
|
|
|
1,144
|
|
|
738
|
|
|||
4.50% Senior notes due December 2048
|
Semi-annually
|
|
1,500
|
|
|
1,462
|
|
|
1,462
|
|
|||
3.125% Senior notes due December 2049
|
Semi-annually
|
|
1,250
|
|
|
1,221
|
|
|
—
|
|
|||
3.50% Senior notes due September 2056
|
Semi-annually
|
|
1,000
|
|
|
972
|
|
|
972
|
|
|||
Total senior notes
|
|
|
$
|
29,500
|
|
|
29,344
|
|
|
26,814
|
|
||
Finance lease obligations; payable in varying installments through January 31, 2055
|
|
|
|
|
1,165
|
|
|
1,049
|
|
||||
Total long-term debt
|
|
|
|
|
30,509
|
|
|
27,863
|
|
||||
Less current installments of long-term debt
|
|
|
|
|
1,839
|
|
|
1,056
|
|
||||
Long-term debt, excluding current installments
|
|
|
|
|
$
|
28,670
|
|
|
$
|
26,807
|
|
•
|
The first tranche consisted of $750 million of 2.95% senior notes due June 15, 2029 (the “2029 notes”) at a premium of $32 million. The 2029 notes form a single series with the Company’s $1.0 billion 2.95% senior notes due June 15, 2029 that were issued in June 2019 and have the same terms. The aggregate principal amount outstanding of the Company’s senior notes due June 15, 2029 is $1.8 billion. Interest on the 2029 notes is due semi-annually on June 15 and December 15 of each year, beginning June 15, 2020, with interest accruing from December 15, 2019.
|
•
|
The second tranche consisted of $1.3 billion of 3.125% senior notes due December 15, 2049 (the “2049 notes”) at a discount of $16 million (together with the 2029 notes, the “January 2020 issuance”). Interest on the 2049 notes is due semi-annually on June 15 and December 15 of each year, beginning June 15, 2020.
|
•
|
Issuance costs totaled $17 million. The net proceeds of the January 2020 issuance will be used for general corporate purposes, including repurchases of common stock.
|
•
|
The first tranche consisted of $1.0 billion of 2.95% senior notes due June 15, 2029 at a discount of $6 million. Interest on these notes is due semi-annually on June 15 and December 15 of each year, beginning December 15, 2019.
|
•
|
The second tranche consisted of $400 million of 3.90% senior notes due June 15, 2047 (the “2047 notes”) at a premium of $10 million (together with the $1.0 billion of 2.95% senior notes due June 15, 2029, the “June 2019 issuance”). The 2047 notes form a single series with the Company’s $750 million 3.90% senior notes due June 15, 2047 that were issued in June 2017, and have the same terms. The aggregate principal amount outstanding of the Company’s senior notes due June 15, 2047 is $1.2 billion. Interest on the 2047 notes is due semi-annually on June 15 and December 15 of each year, beginning December 15, 2019, with interest accruing from June 15, 2019.
|
•
|
Issuance costs totaled $10 million. The net proceeds of the June 2019 issuance were used to repay the Company’s 2.00% senior notes that matured on June 15, 2019 and for general corporate purposes, including repurchases of common stock.
|
•
|
The first tranche consisted of $300 million of floating rate senior notes due March 1, 2022 (the “2022 floating rate notes”). The 2022 floating rate notes bear interest at a variable rate determined quarterly equal to the three-month LIBOR plus 31 basis points. Interest on the 2022 floating rate notes is due quarterly on March 1, June 1, September 1, and December 1 of each year, beginning March 1, 2019.
|
•
|
The second tranche consisted of $700 million of 3.25% senior notes due March 1, 2022 (the “2022 notes”) at a discount of $2 million. Interest on the 2022 notes is due semi-annually on March 1 and September 1 of each year, beginning March 1, 2019.
|
•
|
The third tranche consisted of $1.0 billion of 3.90% senior notes due December 6, 2028 (the “2028 notes”) at a discount of $7 million. Interest on the 2028 notes is due semi-annually on June 6 and December 6 of each year, beginning June 6, 2019.
|
•
|
The fourth tranche consisted of $1.5 billion of 4.50% senior notes due December 6, 2048 (the “2048 notes”) at a discount of $25 million (together with the 2022 floating rate notes, the 2022 notes and the 2028 notes, the “December 2018 issuance”). Interest on the 2048 notes is due semi-annually on June 6 and December 6 of each year, beginning June 6, 2019.
|
•
|
Issuance costs totaled $22 million. The net proceeds of the December 2018 issuance were used for general corporate purposes, including repurchases of common stock.
|
in millions
|
Principal
|
||
Fiscal 2020
|
$
|
1,750
|
|
Fiscal 2021
|
2,350
|
|
|
Fiscal 2022
|
2,250
|
|
|
Fiscal 2023
|
1,000
|
|
|
Fiscal 2024
|
1,100
|
|
|
Thereafter
|
21,050
|
|
|
Total
|
$
|
29,500
|
|
5.
|
INCOME TAXES
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
U.S.
|
$
|
13,770
|
|
|
$
|
13,456
|
|
|
$
|
12,682
|
|
Foreign
|
945
|
|
|
1,100
|
|
|
1,016
|
|
|||
Total
|
$
|
14,715
|
|
|
$
|
14,556
|
|
|
$
|
13,698
|
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
2,370
|
|
|
$
|
2,495
|
|
|
$
|
4,128
|
|
State
|
572
|
|
|
544
|
|
|
499
|
|
|||
Foreign
|
340
|
|
|
372
|
|
|
331
|
|
|||
Total current
|
3,282
|
|
|
3,411
|
|
|
4,958
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
259
|
|
|
67
|
|
|
(67
|
)
|
|||
State
|
(72
|
)
|
|
1
|
|
|
89
|
|
|||
Foreign
|
4
|
|
|
(44
|
)
|
|
88
|
|
|||
Total deferred
|
191
|
|
|
24
|
|
|
110
|
|
|||
Provision for income taxes
|
$
|
3,473
|
|
|
$
|
3,435
|
|
|
$
|
5,068
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|||
|
2019
|
|
2018
|
|
2017
|
|||
Combined federal, state, and foreign effective tax rates
|
23.6
|
%
|
|
23.6
|
%
|
|
37.0
|
%
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Income taxes at federal statutory rate
|
$
|
3,090
|
|
|
$
|
3,057
|
|
|
$
|
4,648
|
|
State income taxes, net of federal income tax benefit
|
395
|
|
|
443
|
|
|
369
|
|
|||
Tax on mandatory deemed repatriation
|
—
|
|
|
(62
|
)
|
|
400
|
|
|||
Other, net
|
(12
|
)
|
|
(3
|
)
|
|
(349
|
)
|
|||
Total
|
$
|
3,473
|
|
|
$
|
3,435
|
|
|
$
|
5,068
|
|
in millions
|
February 2,
2020 |
|
February 3,
2019 |
||||
Assets:
|
|
|
|
||||
Deferred compensation
|
$
|
169
|
|
|
$
|
183
|
|
Accrued self-insurance liabilities
|
285
|
|
|
298
|
|
||
State income taxes
|
100
|
|
|
96
|
|
||
Non-deductible reserves
|
156
|
|
|
231
|
|
||
Net operating losses
|
70
|
|
|
17
|
|
||
Lease liabilities
|
1,536
|
|
|
—
|
|
||
Other
|
135
|
|
|
116
|
|
||
Total deferred tax assets
|
2,451
|
|
|
941
|
|
||
Valuation allowance
|
—
|
|
|
—
|
|
||
Total deferred tax assets after valuation allowance
|
2,451
|
|
|
941
|
|
||
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Merchandise inventories
|
(26
|
)
|
|
(9
|
)
|
||
Property and equipment
|
(1,107
|
)
|
|
(893
|
)
|
||
Goodwill and other intangibles
|
(195
|
)
|
|
(179
|
)
|
||
Right-of-use assets
|
(1,458
|
)
|
|
—
|
|
||
Other
|
(232
|
)
|
|
(230
|
)
|
||
Total deferred tax liabilities
|
(3,018
|
)
|
|
(1,311
|
)
|
||
Net deferred tax liabilities
|
$
|
(567
|
)
|
|
$
|
(370
|
)
|
in millions
|
February 2,
2020 |
|
February 3,
2019 |
||||
Other assets
|
$
|
139
|
|
|
$
|
121
|
|
Deferred income taxes
|
(706
|
)
|
|
(491
|
)
|
||
Net deferred tax liabilities
|
$
|
(567
|
)
|
|
$
|
(370
|
)
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Unrecognized tax benefits balance at beginning of fiscal year
|
$
|
494
|
|
|
$
|
637
|
|
|
$
|
659
|
|
Additions based on tax positions related to the current year
|
96
|
|
|
91
|
|
|
74
|
|
|||
Additions for tax positions of prior years
|
82
|
|
|
100
|
|
|
15
|
|
|||
Reductions for tax positions of prior years
|
(147
|
)
|
|
(245
|
)
|
|
(93
|
)
|
|||
Reductions due to settlements
|
(13
|
)
|
|
(66
|
)
|
|
(1
|
)
|
|||
Reductions due to lapse of statute of limitations
|
(39
|
)
|
|
(23
|
)
|
|
(17
|
)
|
|||
Unrecognized tax benefits balance at end of fiscal year
|
$
|
473
|
|
|
$
|
494
|
|
|
$
|
637
|
|
in millions
|
February 2,
2020 |
|
February 3,
2019 |
||||
Total accrued interest and penalties
|
$
|
87
|
|
|
$
|
101
|
|
6.
|
STOCKHOLDERS’ EQUITY
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|||
2019
|
|
2018
|
|
2017
|
||||
Common stock:
|
|
|
|
|
|
|||
Balance at beginning of year
|
1,782
|
|
|
1,780
|
|
|
1,776
|
|
Shares issued under employee stock plans
|
4
|
|
|
2
|
|
|
4
|
|
Balance at end of year
|
1,786
|
|
|
1,782
|
|
|
1,780
|
|
Treasury stock:
|
|
|
|
|
|
|||
Balance at beginning of year
|
(677
|
)
|
|
(622
|
)
|
|
(573
|
)
|
Repurchases of common stock
|
(32
|
)
|
|
(55
|
)
|
|
(49
|
)
|
Balance at end of year
|
(709
|
)
|
|
(677
|
)
|
|
(622
|
)
|
Shares outstanding at end of year
|
1,077
|
|
|
1,105
|
|
|
1,158
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Cash dividends per share
|
$
|
5.44
|
|
|
$
|
4.12
|
|
|
$
|
3.56
|
|
Agreement
Date
|
|
Settlement
Date
|
|
Agreement
Amount
|
|
Initial
Shares Delivered
|
|
Additional
Shares Delivered
|
|
Total
Shares Delivered
|
|||||
Q2 2017
|
|
Q2 2017
|
|
$
|
1,650
|
|
|
9.7
|
|
|
1.1
|
|
|
10.8
|
|
Q3 2017
|
|
Q4 2017
|
|
1,200
|
|
|
6.7
|
|
|
0.7
|
|
|
7.4
|
|
|
Q1 2018
|
|
Q2 2018
|
|
750
|
|
|
3.4
|
|
|
0.8
|
|
|
4.2
|
|
|
Q2 2018
|
|
Q3 2018
|
|
1,600
|
|
|
7.1
|
|
|
1.0
|
|
|
8.1
|
|
|
Q3 2019
|
|
Q4 2019
|
|
820
|
|
|
3.2
|
|
|
0.4
|
|
|
3.6
|
|
7.
|
FAIR VALUE MEASUREMENTS
|
|
Fair Value at February 2, 2020 Using
|
|
Fair Value at February 3, 2019 Using
|
||||||||||||||||||||
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
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
138
|
|
|
$
|
—
|
|
Derivative agreements – liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
February 2,
2020 |
|
February 3,
2019 |
||||||||||||
in millions
|
Fair Value
(Level 1)
|
|
Carrying
Value
|
|
Fair Value
(Level 1)
|
|
Carrying
Value
|
||||||||
Senior notes
|
$
|
34,102
|
|
|
$
|
29,344
|
|
|
$
|
28,348
|
|
|
$
|
26,814
|
|
8.
|
STOCK-BASED COMPENSATION
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Per share weighted average fair value
|
$
|
27.33
|
|
|
$
|
32.28
|
|
|
$
|
21.85
|
|
Risk-free interest rate
|
2.2
|
%
|
|
2.7
|
%
|
|
1.9
|
%
|
|||
Assumed volatility
|
19.8
|
%
|
|
21.3
|
%
|
|
19.4
|
%
|
|||
Assumed dividend yield
|
2.9
|
%
|
|
2.3
|
%
|
|
2.4
|
%
|
|||
Assumed lives of options
|
5 years
|
|
|
5 years
|
|
|
5 years
|
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Total intrinsic value of stock options exercised
|
$
|
241
|
|
|
$
|
138
|
|
|
$
|
223
|
|
shares in thousands
|
Number of
Shares
|
|
Weighted Average
Exercise Price
|
|||
Outstanding at beginning of year
|
6,380
|
|
|
$
|
91.78
|
|
Granted
|
519
|
|
|
190.66
|
|
|
Exercised
|
(1,649
|
)
|
|
58.65
|
|
|
Forfeited
|
(38
|
)
|
|
170.25
|
|
|
Outstanding at end of year
|
5,212
|
|
|
111.54
|
|
shares in thousands, dollars in millions, except for per share amounts
|
Number of
Shares
|
|
Intrinsic
Value
|
|
Weighted Average
Remaining Life
|
|
Weighted Average
Exercise Price
|
|||||
Outstanding
|
5,212
|
|
|
$
|
607
|
|
|
5 years
|
|
$
|
111.54
|
|
Exercisable
|
3,260
|
|
|
470
|
|
|
4 years
|
|
84.06
|
|
•
|
the restrictions on the restricted stock lapse over various periods up to five years; or
|
•
|
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 associate’s attainment of age 62.
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|||
2019
|
|
2018
|
|
2017
|
||||
Deferred shares granted to non-employee directors
|
22,000
|
|
|
26,000
|
|
|
27,000
|
|
shares in thousands
|
Number of
Shares
|
|
Weighted Average
Grant Date Fair Value
|
|||
Nonvested at beginning of year
|
4,242
|
|
|
$
|
150.51
|
|
Granted
|
1,652
|
|
|
186.56
|
|
|
Vested
|
(1,597
|
)
|
|
134.28
|
|
|
Forfeited
|
(322
|
)
|
|
168.09
|
|
|
Nonvested at end of year
|
3,975
|
|
|
170.58
|
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Stock-based compensation expense, net
|
$
|
251
|
|
|
$
|
282
|
|
|
$
|
273
|
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Total fair value vested
|
$
|
303
|
|
|
$
|
367
|
|
|
$
|
309
|
|
9.
|
EMPLOYEE BENEFIT PLANS
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
||||||
2019
|
|
2018
|
|
2017
|
|||||||
Contributions to the Benefit Plans and the Restoration Plan
|
$
|
213
|
|
|
$
|
211
|
|
|
$
|
202
|
|
10.
|
WEIGHTED AVERAGE COMMON SHARES
|
in millions
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|||
2019
|
|
2018
|
|
2017
|
||||
Basic weighted average common shares
|
1,093
|
|
|
1,137
|
|
|
1,178
|
|
Effect of potentially dilutive securities
|
4
|
|
|
6
|
|
|
6
|
|
Diluted weighted average common shares
|
1,097
|
|
|
1,143
|
|
|
1,184
|
|
Anti-dilutive securities excluded from diluted weighted average common shares
|
—
|
|
|
—
|
|
|
1
|
|
11.
|
COMMITMENTS AND CONTINGENCIES
|
12.
|
QUARTERLY FINANCIAL DATA (UNAUDITED)
|
in millions, except per share data
|
First
Fiscal Quarter
|
|
Second
Fiscal Quarter
|
|
Third
Fiscal Quarter
|
|
Fourth
Fiscal Quarter
|
||||||||
Fiscal 2019:
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
26,381
|
|
|
$
|
30,839
|
|
|
$
|
27,223
|
|
|
$
|
25,782
|
|
Gross profit
|
9,017
|
|
|
10,432
|
|
|
9,387
|
|
|
8,736
|
|
||||
Net earnings
|
2,513
|
|
|
3,479
|
|
|
2,769
|
|
|
2,481
|
|
||||
Basic earnings per share
|
2.28
|
|
|
3.18
|
|
|
2.54
|
|
|
2.29
|
|
||||
Diluted earnings per share
|
2.27
|
|
|
3.17
|
|
|
2.53
|
|
|
2.28
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Fiscal 2018:
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
24,947
|
|
|
$
|
30,463
|
|
|
$
|
26,302
|
|
|
$
|
26,491
|
|
Gross profit
|
8,617
|
|
|
10,365
|
|
|
9,151
|
|
|
9,027
|
|
||||
Net earnings
|
2,404
|
|
|
3,506
|
|
|
2,867
|
|
|
2,344
|
|
||||
Basic earnings per share
|
2.09
|
|
|
3.06
|
|
|
2.53
|
|
|
2.10
|
|
||||
Diluted earnings per share
|
2.08
|
|
|
3.05
|
|
|
2.51
|
|
|
2.09
|
|
13.
|
SUBSEQUENT EVENTS
|
/s/ CRAIG A. MENEAR
|
|
/s/ RICHARD V. MCPHAIL
|
Craig A. Menear
Chairman, Chief Executive Officer and President
|
|
Richard V. McPhail
Executive Vice President and Chief Financial Officer
|
•
|
the highest of (a) the interest rate quoted by The Wall Street Journal as the prime rate in the United States; (b) 0.5% plus the greater of (i) the federal funds effective rate and (ii) the overnight bank funding rate, each as determined by the Federal Reserve Bank of New York; and (c) LIBOR for a one-month interest period plus 1.0%, plus the applicable margin for such loans (“Base Rate Loans”); or
|
•
|
LIBOR for the selected term which may be one, two, three or six months, plus the applicable margin for such loans (“Eurodollar Loans”).
|
•
|
Report of Independent Registered Public Accounting Firm;
|
•
|
Consolidated Balance Sheets as of February 2, 2020 and February 3, 2019;
|
•
|
Consolidated Statements of Earnings for fiscal 2019, fiscal 2018, and fiscal 2017;
|
•
|
Consolidated Statements of Comprehensive Income for fiscal 2019, fiscal 2018, and fiscal 2017;
|
•
|
Consolidated Statements of Stockholders’ Equity for fiscal 2019, fiscal 2018, and fiscal 2017;
|
•
|
Consolidated Statements of Cash Flows for fiscal 2019, fiscal 2018, and fiscal 2017; and
|
•
|
Notes to Consolidated Financial Statements.
|
Exhibit
|
|
Description
|
|
Reference
|
3.1
|
|
|
Form 10-Q for the fiscal quarter ended July 31, 2011, Exhibit 3.1
|
|
3.2
|
|
|
Form 8-K filed on March 4, 2019, Exhibit 3.2
|
|
4.1
|
|
|
Form S-3 (File No. 333-124699) filed May 6, 2005, Exhibit 4.1
|
|
4.2
|
|
|
Form S-3 (File No. 333-183621) filed August 29, 2012, Exhibit 4.3
|
|
4.3
|
|
|
Form 8-K filed December 19, 2006, Exhibit 4.3
|
|
4.4
|
|
|
Form 8-K filed September 10, 2010, Exhibit 4.1
|
|
4.5
|
|
|
Form 8-K filed September 10, 2010, Exhibit 4.2
|
|
4.6
|
|
|
Form 8-K filed March 31, 2011, Exhibit 4.1
|
|
4.7
|
|
|
Form 8-K filed March 31, 2011, Exhibit 4.2
|
|
4.8
|
|
|
Form 8-K filed April 5, 2013, Exhibit 4.2
|
|
4.9
|
|
|
Form 8-K filed April 5, 2013, Exhibit 4.3
|
|
4.10
|
|
|
Form 8-K filed September 10, 2013, Exhibit 4.3
|
Exhibit
|
|
Description
|
|
Reference
|
4.11
|
|
|
Form 8-K filed September 10, 2013, Exhibit 4.4
|
|
4.12
|
|
|
Form 8-K filed June 12, 2014, Exhibit 4.2
|
|
4.13
|
|
|
Form 8-K filed June 12, 2014, Exhibit 4.3
|
|
4.14
|
|
|
Form 8-K filed June 2, 2015, Exhibit 4.2
|
|
4.15
|
|
|
Form 8-K filed June 2, 2015, Exhibit 4.3
|
|
4.16
|
|
|
Form 8-K filed September 15, 2015, Exhibit 4.3
|
|
4.17
|
|
|
Form 8-K filed February 12, 2016, Exhibit 4.2
|
|
4.18
|
|
|
Form 8-K filed February 12, 2016, Exhibit 4.3
|
|
4.19
|
|
|
Form 8-K filed February 12, 2016, Exhibit 4.4
|
|
4.20
|
|
|
Form 8-K filed September 15, 2016, Exhibit 4.2
|
|
4.21
|
|
|
Form 8-K filed September 15, 2016, Exhibit 4.3
|
|
4.22
|
|
|
Form 8-K filed June 5, 2017, Exhibit 4.2
|
|
4.23
|
|
|
Form 8-K filed June 5, 2017, Exhibit 4.3
|
|
4.24
|
|
|
Form 8-K filed June 5, 2017, Exhibit 4.4
|
|
4.25
|
|
|
Form 8-K filed September 14, 2017, Exhibit 4.2
|
|
4.26
|
|
|
Form 8-K filed December 6, 2018, Exhibit 4.2
|
|
4.27
|
|
|
Form 8-K filed December 6, 2018, Exhibit 4.3
|
|
4.28
|
|
|
Form 8-K filed December 6, 2018, Exhibit 4.4
|
|
4.29
|
|
|
Form 8-K filed December 6, 2018, Exhibit 4.5
|
|
4.30
|
|
|
Form 8-K filed June 17, 2019, Exhibit 4.2
|
|
4.31
|
|
|
Form 8-K filed June 17, 2019, Exhibit 4.3
|
|
4.32
|
|
|
Form 8-K filed January 13, 2020, Exhibit 4.2
|
|
4.32
|
|
|
Form 8-K filed January 13, 2020, Exhibit 4.3
|
|
4.33
|
*
|
|
|
|
10.1
|
†
|
|
Form 10-Q for the fiscal quarter ended August 4, 2002, Exhibit 10.1
|
|
10.2
|
†
|
|
Form 10-K for the fiscal year ended February 3, 2013, Exhibit 10.2
|
|
10.3
|
†
|
|
Form 8-K filed on August 20, 2007, Exhibit 10.1
|
|
10.4
|
†
|
|
Form 10-K for the fiscal year ended January 31, 2010, Exhibit 10.4
|
|
10.5
|
†
|
|
Form 10-Q for the fiscal quarter ended May 5, 2013, Exhibit 10.1
|
|
10.6
|
†
|
|
Form 10-K for the fiscal year ended January 31, 2010, Exhibit 10.6
|
|
10.7
|
†
|
|
Form 8-K filed on August 20, 2007, Exhibit 10.2
|
|
10.8
|
†
|
|
Form 10-K for the fiscal year ended February 2, 2014, Exhibit 10.8
|
Exhibit
|
|
Description
|
|
Reference
|
10.9
|
†
|
|
Form 8-K filed on August 20, 2007, Exhibit 10.3
|
|
10.10
|
†
|
|
Form 10-K for the fiscal year ended February 2, 2014, Exhibit 10.10
|
|
10.11
|
†
|
|
Form 10-Q for the fiscal quarter ended April 29, 2012, Exhibit 10.1
|
|
10.12
|
†
|
|
Form 10-Q for the fiscal quarter ended October 31, 2004, Exhibit 10.1
|
|
10.13
|
†
|
|
Form 8-K filed on March 13, 2009, Exhibit 10.4
|
|
10.14
|
†
|
|
Form 8-K filed on November 15, 2007, Exhibit 10.1
|
|
10.15
|
†
|
|
Form 8-K filed on March 2, 2011, Exhibit 10.1
|
|
10.16
|
†
|
|
Form 8-K filed on March 6, 2013, Exhibit 10.1
|
|
10.17
|
†
|
|
Form 8-K filed on March 8, 2016, Exhibit 10.1
|
|
10.18
|
†
|
|
Form 8-K filed on March 8, 2016, Exhibit 10.2
|
|
10.19
|
†
|
|
Form 8-K filed on March 8, 2016, Exhibit 10.3
|
|
10.20
|
†
|
|
Form 10-K for the fiscal year ended January 29, 2017, Exhibit 10.21
|
|
10.21
|
†
|
|
Form 8-K filed on February 28, 2018, Exhibit 10.1
|
|
10.22
|
†
|
|
Form 8-K filed on February 28, 2018, Exhibit 10.2
|
|
10.23
|
†
|
|
Form 8-K filed on February 28, 2018, Exhibit 10.3
|
|
10.24
|
†
|
|
Form 8-K filed on March 4, 2019, Exhibit 10.1
|
Exhibit
|
|
Description
|
|
Reference
|
101.CAL
|
*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
*
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
|
|
†
|
Management contract or compensatory plan or arrangement
|
*
|
Filed herewith
|
‡
|
Furnished (and not filed) herewith pursuant to Item 601(b)(32)(ii) of the SEC’s Regulation S-K
|
THE HOME DEPOT, INC.
(Registrant)
|
||
|
|
|
By:
|
|
/s/ CRAIG A. MENEAR
|
|
|
Craig A. Menear, Chairman,
Chief Executive Officer and President
|
|
||
Date:
|
March 25, 2020
|
Signature
|
|
Title
|
|
|
|
/s/ CRAIG A. MENEAR
|
|
Chairman, Chief Executive Officer and President (Principal Executive Officer)
|
Craig A. Menear
|
|
|
|
|
|
/s/ RICHARD V. MCPHAIL
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
Richard V. McPhail
|
|
|
|
|
|
/s/ GERARD J. ARPEY
|
|
Director
|
Gerard J. Arpey
|
|
|
|
|
|
/s/ ARI BOUSBIB
|
|
Director
|
Ari Bousbib
|
|
|
|
|
|
/s/ JEFFERY H. BOYD
|
|
Director
|
Jeffery H. Boyd
|
|
|
|
|
|
/s/ GREGORY D. BRENNEMAN
|
|
Director
|
Gregory D. Brenneman
|
|
|
|
|
|
/s/ J. FRANK BROWN
|
|
Director
|
J. Frank Brown
|
|
|
|
|
|
/s/ ALBERT P. CAREY
|
|
Director
|
Albert P. Carey
|
|
|
|
|
|
/s/ HELENA B. FOULKES
|
|
Director
|
Helena B. Foulkes
|
|
|
|
|
|
/s/ LINDA R. GOODEN
|
|
Director
|
Linda R. Gooden
|
|
|
|
|
|
/s/ WAYNE M. HEWETT
|
|
Director
|
Wayne M. Hewett
|
|
|
|
|
|
/s/ MANUEL KADRE
|
|
Director
|
Manuel Kadre
|
|
|
|
|
|
/s/ STEPHANIE C. LINNARTZ
|
|
Director
|
Stephanie C. Linnartz
|
|
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|
Fiscal
|
|||||
amounts in millions, except per share data or where noted
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
STATEMENT OF EARNINGS DATA
|
|
|
|
|
|
|
|
|
|
|||||
Net sales ($)
|
110,225
|
|
|
108,203
|
|
|
100,904
|
|
|
94,595
|
|
|
88,519
|
|
Net sales increase (%)
|
1.9
|
|
|
7.2
|
|
|
6.7
|
|
|
6.9
|
|
|
6.4
|
|
Earnings before provision for income taxes ($)
|
14,715
|
|
|
14,556
|
|
|
13,698
|
|
|
12,491
|
|
|
11,021
|
|
Net earnings ($)
|
11,242
|
|
|
11,121
|
|
|
8,630
|
|
|
7,957
|
|
|
7,009
|
|
Net earnings increase (%)
|
1.1
|
|
|
28.9
|
|
|
8.5
|
|
|
13.5
|
|
|
10.5
|
|
Diluted earnings per share ($)
|
10.25
|
|
|
9.73
|
|
|
7.29
|
|
|
6.45
|
|
5.46
|
||
Diluted earnings per share increase (%)
|
5.3
|
|
|
33.5
|
|
|
13.0
|
|
|
18.1
|
|
|
15.9
|
|
Diluted weighted average number of common shares
|
1,097
|
|
|
1,143
|
|
|
1,184
|
|
|
1,234
|
|
|
1,283
|
|
Gross profit – % of sales
|
34.1
|
|
|
34.3
|
|
|
34.0
|
|
|
34.2
|
|
|
34.2
|
|
Total operating expenses – % of sales
|
19.7
|
|
|
20.0
|
|
|
19.5
|
|
|
20.0
|
|
|
20.9
|
|
Net earnings – % of sales
|
10.2
|
|
|
10.3
|
|
|
8.6
|
|
|
8.4
|
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|||||
BALANCE SHEET DATA AND FINANCIAL RATIOS
|
|
|
|
|
|
|
|
|
|
|||||
Total assets ($)
|
51,236
|
|
|
44,003
|
|
|
44,529
|
|
|
42,966
|
|
|
41,973
|
|
Working capital ($)
|
1,435
|
|
|
1,813
|
|
|
2,739
|
|
|
3,591
|
|
|
3,960
|
|
Merchandise inventories ($)
|
14,531
|
|
|
13,925
|
|
|
12,748
|
|
|
12,549
|
|
|
11,809
|
|
Net property and equipment ($) (1)
|
22,770
|
|
|
22,375
|
|
|
22,075
|
|
|
21,914
|
|
|
22,191
|
|
Long-term debt, excluding current installments ($)
|
28,670
|
|
|
26,807
|
|
|
24,267
|
|
|
22,349
|
|
|
20,789
|
|
Stockholders’ (deficit) equity ($)
|
(3,116
|
)
|
|
(1,878
|
)
|
|
1,454
|
|
|
4,333
|
|
|
6,316
|
|
Total debt-to-equity (%)
|
(1,010.4
|
)
|
|
(1,555.0
|
)
|
|
1,858.9
|
|
|
544.7
|
|
|
335.9
|
|
Inventory turnover
|
4.9
|
x
|
|
5.1
|
x
|
|
5.1
|
x
|
|
4.9
|
x
|
|
4.9
|
x
|
|
|
|
|
|
|
|
|
|
|
|||||
STATEMENT OF CASH FLOWS DATA
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization ($)
|
2,296
|
|
|
2,152
|
|
|
2,062
|
|
|
1,973
|
|
|
1,863
|
|
Capital expenditures ($)
|
2,678
|
|
|
2,442
|
|
|
1,897
|
|
|
1,621
|
|
|
1,503
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OTHER METRICS
|
|
|
|
|
|
|
|
|
|
|||||
Return on invested capital (%)
|
45.4
|
|
|
44.8
|
|
|
34.2
|
|
|
31.4
|
|
|
28.1
|
|
Cash dividends per share ($)
|
5.44
|
|
|
4.12
|
|
|
3.56
|
|
|
2.76
|
|
|
2.36
|
|
Number of stores
|
2,291
|
|
|
2,287
|
|
|
2,284
|
|
|
2,278
|
|
|
2,274
|
|
Retail square footage at fiscal year-end
|
238
|
|
|
238
|
|
|
237
|
|
|
237
|
|
|
237
|
|
Comparable sales increase (%) (2) (4)
|
3.5
|
|
|
5.2
|
|
|
6.8
|
|
|
5.6
|
|
|
5.6
|
|
Sales per retail square foot ($) (3)
|
454.82
|
|
|
446.86
|
|
|
417.02
|
|
|
390.78
|
|
|
370.55
|
|
Customer transactions (3)
|
1,616
|
|
|
1,621
|
|
|
1,579
|
|
|
1,544
|
|
|
1,501
|
|
Average ticket ($) (3)
|
67.30
|
|
|
65.74
|
|
|
63.06
|
|
|
60.35
|
|
|
58.77
|
|
Number of associates at fiscal year-end (in thousands)
|
415
|
|
|
413
|
|
|
413
|
|
|
406
|
|
|
385
|
|
(1)
|
Includes finance leases.
|
(2)
|
The calculations for fiscal 2017, fiscal 2016, and fiscal 2015 do not include results for Interline, which was acquired in fiscal 2015.
|
(3)
|
These amounts do not include the results for Interline, which was acquired in fiscal 2015.
|
(4)
|
Fiscal 2019 compares the 52 week period in fiscal 2019 to weeks 2 through 53 in fiscal 2018. Fiscal 2018 calculations do not include results from the 53rd week of fiscal 2018 and compare weeks 1 through 52 in fiscal 2018 to the 52 week period in fiscal 2017.
|
NAME OF SUBSIDIARY
|
|
STATE OR JURISDICTION OF INCORPORATION
|
|
D/B/A
|
Home Depot U.S.A., Inc.
|
|
Delaware
|
|
The Home Depot
|
Home Depot International, Inc.
|
|
Delaware
|
|
(Not Applicable)
|
HD Development Holdings, Inc.
|
|
Delaware
|
|
(Not Applicable)
|
HD Development of Maryland, Inc.
|
|
Maryland
|
|
(Not Applicable)
|
Home Depot Product Authority, LLC
|
|
Georgia
|
|
(Not Applicable)
|
Home Depot of Canada, Inc.
|
|
Canada
|
|
(Not Applicable)
|
Atlanta, Georgia
|
March 25, 2020
|
1.
|
I have reviewed this annual report on Form 10-K 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 annual report on Form 10-K 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/ Richard V. McPhail
|
Richard V. McPhail
|
Executive Vice President and Chief Financial Officer
|
(1)
|
The Form 10-K 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-K 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
|
March 25, 2020
|
(1)
|
The Form 10-K 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-K fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Richard V. McPhail
|
Richard V. McPhail
|
Executive Vice President and Chief Financial Officer
|
March 25, 2020
|