Home Depot Files Q2 2024 10-Q

TL;DR

HD's Q2 10-Q is in - check financials for latest performance.

AI Summary

Home Depot, Inc. filed its 10-Q for the period ending July 28, 2024. The company reported financial results and provided updates on its business operations. Specific financial figures and operational details are contained within the filing.

Why It Matters

This filing provides investors with the latest financial performance and operational insights for Home Depot, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Players & Entities

• HOME DEPOT, INC. (company) — Filer
• 20240728 (date) — Reporting Period End Date
• 20240820 (date) — Filing Date
• ATLANTA (location) — Company Headquarters City
• GA (location) — Company Headquarters State

FAQ

Key Financial Figures

• $0.05 — ange on which registered Common Stock, $0.05 Par Value Per Share HD New York Stock E

Filing Documents

• hd-20240728.htm (10-Q) — 979KB
• hd364-daycreditagreementxe.htm (EX-10.1) — 644KB
• hd3-yearcreditagreementxex.htm (EX-10.2) — 643KB
• hdcapitalmarketscreditagre.htm (EX-10.3) — 635KB
• hd_exhibit151x7282024.htm (EX-15.1) — 10KB
• hd_exhibit311-7282024.htm (EX-31.1) — 9KB
• hd_exhibit312-7282024.htm (EX-31.2) — 9KB
• hd_exhibit321-7282024.htm (EX-32.1) — 4KB
• hd_exhibit322-7282024.htm (EX-32.2) — 4KB
• hd-20240728_g1.jpg (GRAPHIC) — 1053KB
• 0000354950-24-000201.txt ( ) — 10187KB
• hd-20240728.xsd (EX-101.SCH) — 36KB
• hd-20240728_cal.xml (EX-101.CAL) — 77KB
• hd-20240728_def.xml (EX-101.DEF) — 154KB
• hd-20240728_lab.xml (EX-101.LAB) — 528KB
• hd-20240728_pre.xml (EX-101.PRE) — 359KB
• hd-20240728_htm.xml (XML) — 742KB

Forward-Looking Statements

Forward-Looking Statements iii

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements. 1 Consolidated Balance Sheets 1 Consolidated Statements of Earnings 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Stockholders' Equity 4 Consolidated Statements of Cash Flows 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Note 1. Summary of Significant Accounting Policies 6 Note 2. Segment Reporting and Net Sales 7 Note 3. Property and Leases 9 Note 4. Goodwill and Intangible Assets 10 Note 5. Debt and Derivative Instruments 11 Note 6. Stockholders' Equity 13 Note 7. Fair Value Measurements 13 Note 8. Weighted Average Common Shares 14 Note 9. Contingencies 14 Note 10. Acquisitions 15 Report of Independent Registered Public Accounting Firm 18

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 27

Controls and Procedures

Item 4. Controls and Procedures. 27

– OTHER INFORMATION

PART II – OTHER INFORMATION 27 Item 1. Legal Proceedings. 27

Risk Factors

Item 1A. Risk Factors. 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 28 Item 5. Other Information. 28

Exhibits

Item 6. Exhibits. 29

SIGNATURES

SIGNATURES 30 Fiscal Q2 2024 Form 10-Q i Table of Contents COMMONLY USED OR DEFINED TERMS Term Definition Comparable sales As defined in the Results of Operations section of MD&A Exchange Act Securities Exchange Act of 1934, as amended fiscal 2023 Fiscal year ended January 28, 2024 (includes 52 weeks) fiscal 2024 GAAP U.S. generally accepted accounting principles MD&A Management's Discussion and Analysis of Financial Condition and Results of Operations NOPAT Net operating profit after tax Restoration Plans Home Depot FutureBuilder Restoration Plan and HD Supply 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 expenses SRS SRS Distribution Inc. 2023 Form 10-K Annual Report on Form 10-K for fiscal 2023 as filed with the SEC on March 13, 2024 Fiscal Q2 2024 Form 10-Q ii Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements contained herein, as well as in other filings we make with the SEC and other written and oral information we release, regarding our performance or other events or developments in the future constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the demand for our products and services, including as a result of macroeconomic conditions; net sales growth; comparable sales; the effects of competition; our brand and reputation; implementation of interconnected retail, store, supply chain and technology initiatives; inventory and in-stock positions; the state of the economy; the state of the housing and home improvement markets; the state of the credit markets, including mortgages, home equity loans, and consumer credit; the impact of tariffs; issues related to the payment methods we accept; demand for credit offerings; management of relationships with our associates, potential associates, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; events that could disrupt our business, supply chain, technology infrastructure, or demand for our products and services, such as international trade disputes, natural disasters, climate change, public health issues, cybersecurity events, labor disputes, geopolitical conflicts, military conflicts or acts of war; our ability to maintain a safe and secure store environment; our ability to address expectations regarding environmental, social and governance matters and meet related goals; continuation or suspension of share repurchases; net earnings performance; earnings per share; future dividends; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; changes in interest rates; changes in foreign currency exchange rates; commodity or other price inflation and deflation; our ability to is

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) in millions, except per share data July 28, 2024 January 28, 2024 Assets Current assets: Cash and cash equivalents $ 1,613 $ 3,760 Receivables, net 5,503 3,328 Merchandise inventories 23,060 20,976 Other current assets 2,097 1,711 Total current assets 32,273 29,775 Net property and equipment 26,640 26,154 Operating lease right-of-use assets 8,613 7,884 Goodwill 19,414 8,455 Intangible assets, net 9,214 3,606 Other assets 692 656 Total assets $ 96,846 $ 76,530 Liabilities and Stockholders' Equity Current liabilities: Short-term debt $ 2,527 $ — Accounts payable 13,206 10,037 Accrued salaries and related expenses 2,105 2,096 Sales taxes payable 645 449 Deferred revenue 2,754 2,762 Income taxes payable 40 28 Current installments of long-term debt 1,339 1,368 Current operating lease liabilities 1,242 1,050 Other accrued expenses 4,265 4,225 Total current liabilities 28,123 22,015 Long-term debt, excluding current installments 51,869 42,743 Long-term operating lease liabilities 7,635 7,082 Deferred income taxes 2,074 863 Other long-term liabilities 2,725 2,783 Total liabilities 92,426 75,486 Contingencies ( Note 9 ) Common stock, par value $ 0.05 ; authorized: 10,000 shares; issued: 1,799 shares at July 28, 2024 and 1,796 shares at January 28, 2024; outstanding: 993 shares at July 28, 2024 and 992 shares at January 28, 2024 90 90 Paid-in capital 13,731 13,147 Retained earnings 87,357 83,656 Accumulated other comprehensive loss ( 787 ) ( 477 ) Treasury stock, at cost, 806 shares at July 28, 2024 and 804 shares at January 28, 2024 ( 95,971 ) ( 95,372 ) Total stockholders' equity 4,420 1,044 Total liabilities and stockholders' equity $ 96,846 $ 76,530 ————— See accompanying notes to consolidated financial statements. Fiscal Q2 2024 Form 10-Q 1 Table of Contents THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS (Unau

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of The Home Depot, Inc., together with its subsidiaries (the "Company," "Home Depot," "we," "our" or "us"), have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2023 Form 10-K. During the second quarter of fiscal 2024, we completed the acquisition of SRS. Refer to Note 2 and Note 10 for further discussion on the acquisition, including certain impacts of the acquisition on our consolidated financial statements. Reclassifications Effective July 28, 2024, we began separately presenting intangible assets, net, on the consolidated balance sheets, which were previously included in the other assets line item. In addition, we began separately presenting intangible asset amortization on the statements of cash flows, which was previously included in the depreciation and amortization line item. Prior period amounts have been reclassified to conform to the current year's financial statement presentation. Receivables, net The following table presents components of receivables, net: in millions July 28, 2024 January 28, 2024 Card receivables $ 1,240 $ 988 Rebate receivables 1,395 841 Customer receivables 2,296 924 Other receivables 572 575 Receivables, ne

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View this 10-Q filing on SEC EDGAR