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Based on section two (NET SALES AND SEGMENT REPORTING); How does HD segment its operations? 2. NET SALES AND SEGMENT REPORTING We currently conduct our

Based on section two (NET SALES AND SEGMENT REPORTING); How does HD segment its operations?

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2. NET SALES AND SEGMENT REPORTING We currently conduct our retail operations in the U.S., Canada, and Mexico, each of which represents one of our three operating segments. Our operating segments reflect the way in which internally-reported financial information is used to make decisions and allocate resources. For disclosure purposes, we aggregate these three operating segments into one reportable segment due to their similar operating and financial characteristics. The following table presents net property and equipment, classified by geography: in millions Net property and equipment in the U.S. Net property and equipment - outside the U.S. Net property and equipment in millions Net sales in the U.S. Net sales - outside the U.S. Net sales The following table presents net sales by products and services: in millions Net sales - products Net sales - services Net sales in millions Building Materials Dcor Hardlines $ No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years. The following table presents net sales, classified by geography: Net sales dollars in millions Appliances Building Materials Dcor/Storage Electrical/Lighting Flooring Hardware Indoor Garden. Kitchen and Bath Lumber Millwork Outdoor Garden. Paint Plumbing Tools The following table presents net sales by major product lines (and related services): Total $ Net Sales Fiscal 2021 14,232 9,823 6,095 13,473 9,225 7,873 15,546 10,432 13,344 7,412 10,317 10,453 10,938 11,994 $ 151,157 % of Net Sales 9.4 % $ 6.5 4.0 8.9 $ $ 6.1 5.2 10.3 $ $ The following table presents major product lines and the related merchandising departments (and related services): Major Product Line Merchandising Departments Building Materials Dcor Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing Appliances, Dcor/Storage, Flooring, Kitchen and Bath, and Paint Hardware, Indoor Garden, Outdoor Garden, and Tools Hardlines Net Sales $ January 30, 2022 $ $ 22,696 $ 2,503 25,199 $ 11,865 8,656 4,959 11,178 6.9 8.8 4.9 6.8 6.9 7.2 8,918 7.9 10,611 100.0% $ 132,110 Fiscal 2021 8,156 7,312 14,649 8,383 11,309 6,460 9,602 10,052 Fiscal 2020 138,920 $ 12,237 151,157 $ Note: Net sales for certain merchandising departments were reclassified in fiscal 2021. As a result, prior year amounts have been reclassified to conform with the current year presentation. The following table presents net sales by merchandising department (and related services): Fiscal 2021 145,745 $ 5,412 151,157 $ Fiscal 2021 January 31, 2021 22,205 $ 2,500 24,705 $ %% of Net Sales Fiscal 2020 9.0% $ 6.6 3.8 8.5 6.2 5.5 11.1 6.3 8.6 122,158 $ 9,952 132,110 $ 4.9 7.3 7.6 Fiscal 2020 127,671 $ 4,439 132,110 $ Fiscal 2020 February 2, 2020 Net Sales 20,302 2,468 22,770 46,521 $ 39,337 54,990 $ 50,437 37,386 43,415 42.174 45,730 33.502 151,157 $ 132,110 $ 110,225 Fiscal 2019 9,850 7,712 3,845 9,843 7,443 6,083 11,261 7,633 7,894 5,757 7,595 8,615 6.8 8,131 8.0 8,563 100.0% $ 110,225 Fiscal 2019 101,333 8,892 110,225 Fiscal 2019 105,194 5,031 110,225 Fiscal 2019 % of Net Sales 8.9 % 7.0 3.5 8.9 6.8 5.5 10.2 6.9 7.2 5.2 6.9 7.8 7.4 7.8 100.0 % Note: Certain percentages may not sum to totals due to rounding. Net sales for certain merchandising departments were reclassified in fiscal 2021. As a result, prior year net sales have been reclassified to conform with the current year presentation. Prior year percent of net sales data also reflects the new classifications. 2. NET SALES AND SEGMENT REPORTING We currently conduct our retail operations in the U.S., Canada, and Mexico, each of which represents one of our three operating segments. Our operating segments reflect the way in which internally-reported financial information is used to make decisions and allocate resources. For disclosure purposes, we aggregate these three operating segments into one reportable segment due to their similar operating and financial characteristics. The following table presents net property and equipment, classified by geography: in millions Net property and equipment in the U.S. Net property and equipment - outside the U.S. Net property and equipment in millions Net sales in the U.S. Net sales - outside the U.S. Net sales The following table presents net sales by products and services: in millions Net sales - products Net sales - services Net sales in millions Building Materials Dcor Hardlines $ No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years. The following table presents net sales, classified by geography: Net sales dollars in millions Appliances Building Materials Dcor/Storage Electrical/Lighting Flooring Hardware Indoor Garden. Kitchen and Bath Lumber Millwork Outdoor Garden. Paint Plumbing Tools The following table presents net sales by major product lines (and related services): Total $ Net Sales Fiscal 2021 14,232 9,823 6,095 13,473 9,225 7,873 15,546 10,432 13,344 7,412 10,317 10,453 10,938 11,994 $ 151,157 % of Net Sales 9.4 % $ 6.5 4.0 8.9 $ $ 6.1 5.2 10.3 $ $ The following table presents major product lines and the related merchandising departments (and related services): Major Product Line Merchandising Departments Building Materials Dcor Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing Appliances, Dcor/Storage, Flooring, Kitchen and Bath, and Paint Hardware, Indoor Garden, Outdoor Garden, and Tools Hardlines Net Sales $ January 30, 2022 $ $ 22,696 $ 2,503 25,199 $ 11,865 8,656 4,959 11,178 6.9 8.8 4.9 6.8 6.9 7.2 8,918 7.9 10,611 100.0% $ 132,110 Fiscal 2021 8,156 7,312 14,649 8,383 11,309 6,460 9,602 10,052 Fiscal 2020 138,920 $ 12,237 151,157 $ Note: Net sales for certain merchandising departments were reclassified in fiscal 2021. As a result, prior year amounts have been reclassified to conform with the current year presentation. The following table presents net sales by merchandising department (and related services): Fiscal 2021 145,745 $ 5,412 151,157 $ Fiscal 2021 January 31, 2021 22,205 $ 2,500 24,705 $ %% of Net Sales Fiscal 2020 9.0% $ 6.6 3.8 8.5 6.2 5.5 11.1 6.3 8.6 122,158 $ 9,952 132,110 $ 4.9 7.3 7.6 Fiscal 2020 127,671 $ 4,439 132,110 $ Fiscal 2020 February 2, 2020 Net Sales 20,302 2,468 22,770 46,521 $ 39,337 54,990 $ 50,437 37,386 43,415 42.174 45,730 33.502 151,157 $ 132,110 $ 110,225 Fiscal 2019 9,850 7,712 3,845 9,843 7,443 6,083 11,261 7,633 7,894 5,757 7,595 8,615 6.8 8,131 8.0 8,563 100.0% $ 110,225 Fiscal 2019 101,333 8,892 110,225 Fiscal 2019 105,194 5,031 110,225 Fiscal 2019 % of Net Sales 8.9 % 7.0 3.5 8.9 6.8 5.5 10.2 6.9 7.2 5.2 6.9 7.8 7.4 7.8 100.0 % Note: Certain percentages may not sum to totals due to rounding. Net sales for certain merchandising departments were reclassified in fiscal 2021. As a result, prior year net sales have been reclassified to conform with the current year presentation. Prior year percent of net sales data also reflects the new classifications

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