What changed in this filing

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Item 1. Financial Statements

2022-08-23 compared with 2022-05-24 · 82 added, 50 removed, 296 unchanged (31% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

in millions, except per share data May 1,

in millions, except per share data July 31,

2022 January 30,

28 unchanged sentences

10,000 shares;

1,793 shares at May 1, 2022 and 1,792 shares at January 30, 2022;

1,029 shares at May 1, 2022 and 1,035 shares at January 30, 2022

1,793 shares at July 31, 2022 and 1,792 shares at January 30, 2022;

1,024 shares at July 31, 2022 and 1,035 shares at January 30, 2022

Paid-in capital 12,309 12,132

1 unchanged sentence

Accumulated other comprehensive loss ( 672 ) ( 704 )

Treasury stock, at cost, 764 shares at May 1, 2022 and 757 shares at January 30, 2022

Treasury stock, at cost, 769 shares at July 31, 2022 and 757 shares at January 30, 2022

( 84,564 ) ( 80,794 )

Total stockholders’ (deficit) equity ( 1,709 ) ( 1,696 )

Total stockholders’ equity (deficit) 237 ( 1,696 )

Total liabilities and stockholders’ equity

3 unchanged sentences

CONSOLIDATED STATEMENTS OF EARNINGS

Three Months Ended

in millions, except per share data May 1,

Three Months Ended Six Months Ended

in millions, except per share data July 31,

2022 August 1,

2021 July 31,

2022 August 1,

Net sales $ 43,792 $ 41,118 $ 82,700 $ 78,618

20 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended

in millions May 1,

Three Months Ended Six Months Ended

in millions July 31,

2022 August 1,

2021 July 31,

2022 August 1,

Net earnings $ 5,173 $ 4,807 $ 9,404 $ 8,952

2 unchanged sentences

Cash flow hedges 2 2 3 4

Other — — — 27

Total other comprehensive income (loss), net of tax 11 23 32 86

3 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Three Months Ended

in millions May 1,

Three Months Ended Six Months Ended

in millions July 31,

2022 August 1,

2021 July 31,

2022 August 1,

Common Stock:

23 unchanged sentences

Balance at end of period ( 84,564 ) ( 72,793 ) ( 84,564 ) ( 72,793 )

Total stockholders' (deficit) equity $ ( 1,709 ) $ 1,748

Total stockholders' equity $ 237 $ 2,069 $ 237 $ 2,069

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

in millions May 1,

Six Months Ended

in millions July 31,

2022 August 1,

Cash Flows from Operating Activities:

15 unchanged sentences

( 1,447 ) ( 1,042 )

Payments for businesses acquired, net — ( 416 )

Other investing activities ( 14 ) —

32 unchanged sentences

Recent Accounting Pronouncements

We did not adopt any new accounting pronouncements during the three months ended May 1, 2022 that had a material impact on our consolidated financial condition, results of operations or cash flows.

We did not adopt any new accounting pronouncements during the first six months of fiscal 2022 that had a material impact on our consolidated financial condition, results of operations or cash flows.

Recent accounting pronouncements pending adoption not discussed in the 2021 Form 10-K are either not applicable or will not have or are not expected to have a material impact on our consolidated financial condition, results of operations or cash flows.

The following table presents net sales, classified by geography:

Three Months Ended

in millions May 1,

Three Months Ended Six Months Ended

in millions July 31,

2022 August 1,

2021 July 31,

2022 August 1,

Net sales – in the U.S.

2 unchanged sentences

3,748 3,476 6,650 6,259

$ 43,792 $ 41,118 $ 82,700 $ 78,618

The following table presents net sales by products and services:

Three Months Ended

in millions May 1,

Three Months Ended Six Months Ended

in millions July 31,

2022 August 1,

2021 July 31,

2022 August 1,

Net sales – products $ 42,348 $ 39,717 $ 79,813 $ 75,988

7 unchanged sentences

The following table presents net sales by major product lines (and related services):

Three Months Ended

in millions May 1,

Three Months Ended Six Months Ended

in millions July 31,

2022 August 1,

2021 July 31,

2022 August 1,

Building Materials $ 15,883 $ 14,411 $ 30,752 $ 28,071

6 unchanged sentences

Such performance obligations are part of contracts with expected original durations of typically three months or less.

As of May 1, 2022 and January 30, 2022, deferred revenue for products and services was $ 2.7 billion and $ 2.6 billion, respectively.

As of both July 31, 2022 and January 30, 2022, deferred revenue for products and services was $ 2.6 billion.

We further record deferred revenue for the sale of gift cards and recognize the associated revenue upon the redemption of those gift cards, which generally occurs within six months of gift card issuance.

As of May 1, 2022 and January 30, 2022, our performance obligations for unredeemed gift cards were $ 944 million and $ 1.0 billion, respectively.

Gift card breakage income, which is our estimate of the portion of our gift card balance not expected to be redeemed, was immaterial during the three months ended May 1, 2022 and May 2, 2021.

As of July 31, 2022 and January 30, 2022, our performance obligations for unredeemed gift cards were $ 938 million and $ 1.0 billion, respectively.

Gift card breakage income, which is our estimate of the portion of our gift card balance not expected to be redeemed, was immaterial during the three and six months ended July 31, 2022 and August 1, 2021.

PROPERTY AND LEASES

Net Property and Equipment

Net property and equipment includes accumulated depreciation and amortization of $ 26.6 billion as of May 1, 2022 and $ 26.1 billion as of January 30, 2022.

Net property and equipment includes accumulated depreciation and finance lease amortization of $ 27.2 billion as of July 31, 2022 and $ 26.1 billion as of January 30, 2022.

The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases:

in millions Consolidated Balance Sheet Classification

in millions Consolidated Balance Sheet Classification July 31,

2022 January 30,

8 unchanged sentences

Total lease liabilities $ 9,651 $ 9,419

(1) Finance lease assets are recorded net of accumulated amortization of $ 1.1 billion as of May 1, 2022 and $ 1.0 billion as of January 30, 2022.

(1) Finance lease assets are recorded net of accumulated amortization of $ 1.1 billion as of July 31, 2022 and $ 1.0 billion as of January 30, 2022.

The following table presents supplemental non-cash information related to leases:

Three Months Ended

in millions May 1,

Six Months Ended

in millions July 31,

2022 August 1,

Lease assets obtained in exchange for new operating lease liabilities $ 646 $ 429

2 unchanged sentences

Short-Term Debt

We have commercial paper programs that allow for borrowings up to $ 3.0 billion.

All of our short-term borrowings in the first three months of fiscal 2022 were under these commercial paper programs, and the maximum amount outstanding at any time was $ 2.7 billion.

In connection with these programs, we have back-up credit facilities with a consortium of banks for borrowings of up to $ 3.0 billion, which consist of a five-year $ 2.0 billion credit facility scheduled to expire in December 2023 and a 364 -day $ 1.0 billion credit facility scheduled to expire in December 2022.

At May 1, 2022, there were no outstanding borrowings under our commercial paper programs, and at January 30, 2022, we had $ 1.0 billion of outstanding borrowings under our commercial paper programs.

In July 2022, we expanded our commercial paper program from $ 3.0 billion to $ 5.0 billion to further enhance our financial flexibility.

All of our short-term borrowings in the first six months of fiscal 2022 were under our commercial paper program, and the maximum amount outstanding at any time was $ 2.7 billion.

In connection with our program, we have back-up credit facilities with a consortium of banks.

In July 2022, we also expanded the borrowing capacity under these back-up facilities from $ 3.0 billion to $ 5.0 billion, by entering into a five-year $ 3.5 billion credit facility scheduled to expire in July 2027 and a 364 -day $ 1.5 billion credit facility scheduled to expire in July 2023.

These facilities replaced our previously existing five-year $ 2.0 billion credit facility, which was scheduled to expire in December 2023, and our 364 -day $ 1.0 billion credit facility, which was scheduled to expire in December 2022.

At July 31, 2022 and January 30, 2022, we had outstanding borrowings under our commercial paper program of $ 539 million and $ 1.0 billion, respectively.

Long-Term Debt

18 unchanged sentences

In March 2022, we repaid our $ 700 million 3.25 % senior notes and $ 300 million floating rate senior notes at maturity.

In May 2022, subsequent to the end of our first fiscal quarter, we fully repaid our $ 1.25 billion 2.625 % senior notes, which had a maturity date of June 2022, at the Par Call Date for the notes.

In May 2022, we repaid our $ 1.25 billion 2.625 % senior notes, which had a maturity date of June 2022, at the Par Call Date for the notes.

Derivative Instruments and Hedging Activities

We had outstanding interest rate swap agreements with combined notional amounts of $ 5.4 billion at both May 1, 2022 and January 30, 2022.

We had outstanding interest rate swap agreements with combined notional amounts of $ 5.4 billion at both July 31, 2022 and January 30, 2022.

These agreements are accounted for as fair value hedges that swap fixed for variable rate interest to hedge changes in the fair values of certain senior notes.

At May 1, 2022, the fair values of these agreements totaled $ 652 million, with $ 660 million recognized in other long-term liabilities and $ 8 million recognized in other assets on the consolidated balance sheet.

At July 31, 2022, the fair values of these agreements totaled $ 515 million, with $ 528 million recognized in other long-term liabilities and $ 13 million recognized in other assets on the consolidated balance sheet.

At January 30, 2022, the fair values of these agreements totaled $ 191 million, with $ 249 million recognized in other long-term liabilities and $ 58 million recognized in other assets on the consolidated balance sheet.

4 unchanged sentences

To further limit our credit risk, we enter into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain derivative instruments exceeds or falls below contractually established thresholds.

The cash collateral posted by the Company related to derivative instruments under our collateral security arrangements was $ 489 million as of May 1, 2022, which was recorded in other current assets on the consolidated balance sheet.

We did not hold any cash collateral as of May 1, 2022, and cash collateral both held and posted was immaterial as of January 30, 2022.

The cash collateral posted by the Company related to derivative instruments under our collateral security arrangements was $ 470 million as of July 31, 2022, which was recorded in other current assets on the consolidated balance sheet.

We did not hold any cash collateral as of July 31, 2022, and cash collateral both held and posted was immaterial as of January 30, 2022.

STOCKHOLDERS' EQUITY

1 unchanged sentence

The following table presents a reconciliation of the number of shares of our common stock and cash dividends per share:

shares in millions Three Months Ended

shares in millions Three Months Ended Six Months Ended

2022 August 1,

2021 July 31,

2022 August 1,

Common stock:

9 unchanged sentences

Share Repurchases

In May 2021, our Board of Directors approved a $ 20.0 billion share repurchase authorization that replaced the previous authorization.

This new authorization does not have a prescribed expiration date.

As of May 1, 2022, approximately $ 7.4 billion of the $ 20.0 billion share repurchase authorization remained available.

In May 2021, our Board of Directors approved a $ 20.0 billion share repurchase authorization, of which $ 5.8 billion remained available as of July 31, 2022.

In August 2022, our Board of Directors approved a $ 15.0 billion share repurchase authorization that replaced the May 2021 authorization and does not have a prescribed expiration date.

The following table presents information about our repurchases of common stock, all of which were completed through open market purchases:

Three Months Ended

Three Months Ended Six Months Ended

2022 August 1,

2021 July 31,

2022 August 1,

Total number of shares repurchased 5 10 12 23

Total cost of shares repurchased $ 1,520 $ 3,000 $ 3,770 $ 7,000

$ 2,250 $ 4,000

These amounts may differ from the repurchases of common stock amounts in the consolidated statements of cash flows due to unsettled share repurchases at the end of a period.

9 unchanged sentences

The following table presents the assets and liabilities that are measured at fair value on a recurring basis:

May 1, 2022 January 30, 2022

July 31, 2022 January 30, 2022

in millions Level 1

6 unchanged sentences

Long-lived assets, goodwill, and other intangible assets are subject to nonrecurring fair value measurement for the assessment of impairment.

We did not have any material assets or liabilities that were measured at fair value on a nonrecurring basis during the three months ended May 1, 2022 or May 2, 2021.

We did not have any material assets or liabilities that were measured at fair value on a nonrecurring basis during the three and six months ended July 31, 2022 or August 1, 2021.

Other Fair Value Disclosures

1 unchanged sentence

The following table presents the aggregate fair values and carrying values of our senior notes:

May 1, 2022 January 30, 2022

July 31, 2022 January 30, 2022

in millions Fair Value

5 unchanged sentences

The following table presents the reconciliation of our basic to diluted weighted average common shares:

Three Months Ended

in millions May 1,

Three Months Ended Six Months Ended

2022 August 1,

2021 July 31,

2022 August 1,

Basic weighted average common shares 1,023 1,058 1,026 1,064

11 unchanged sentences

We have reviewed the consolidated balance sheet of The Home Depot, Inc.

and its subsidiaries (the “Company”) as of May 1, 2022, the related consolidated statements of earnings, comprehensive income, stockholders’ equity, and cash flows for the three-month periods ended May 1, 2022 and May 2, 2021, and the related notes (collectively, the “consolidated interim financial information”).

and subsidiaries (the “Company”) as of July 31, 2022, the related consolidated statements of earnings, comprehensive income, and stockholders’ equity for the three-month and six-month periods ended July 31, 2022 and August 1, 2021, the related consolidated statements of cash flows for the six-month periods ended July 31, 2022 and August 1, 2021, and the related notes (collectively, the “consolidated interim financial information”).

Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S.

12 unchanged sentences

Atlanta, Georgia

August 22, 2022

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements