February 2, 2020 "Fiscal 2019 February 3, 2019 "Fiscal 2015 $ 2,133 2,106 14,531 1,0-40 19.810 22,770 5,595 2254 807 $ 51,236 $ 1,778 1.936 13.925 890 18.529 22.375 2.252 847 $ 44,003 In milions, except per share data ASSETS Current assets: Cash and cash equivalents Receivables, et Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-terni debe Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term deht Current operating lease liabilities Other accrued expenses Total current liabilities Long-term debt, excluding current installments Lang-term operating lease abilities Deferred income taxes Other long-terni liabilities Total liabilities Common dock. par value 50.05.authored 10,000 shares Issued: 1.786 shares at February 2, 2020 and 1.782shares at February 3, 2019. cutstanding. 1.0177 stresat February 2. 2020 and 1.105 Shures al February 3, 2019 Pald-in capital Retained earnings Accumulated other comprehensive Treasury stick at com. 700 shares at February 2 2020 and 677 Surat Fely 2019 Total stockholdende evaly Total liabilities and stockholders equity $ 1339 7.755 1,506 656 1.782 11 1.056 $ 974 7.787 1,494 605 2.116 55 1.839 828 2,677 18.375 28,670 5,066 706 1.535 54,152 2.611 16,716 26.807 391 1867 15.SI 9 11.001 $1,729 1739) 9 10.57% 46.123 772) 65,196 13.116 $ 51.236 58100 (1.8783 5 41,003 THE HOME DEPOY, INC. Consolidated Statements of Earnings Fiscal 2019 $110,225 72,653 37,572 Fiscal 2018 $108,203 71,043 37,160 Fiscal 2017 $100,904 66,548 34.356 19,740 1,090 19,513 1.670 247 17.864 1.811 21.729 15.843 21,630 15,530 19.675 14,681 in millions, exerpe per share data NET SALES Cost of sales GROSS PROFIT Operating expenses Selling, general and administrative Depreciation and amortization Impairment loss Total operating expenses OPERATING INCOME Interest and other income) expense! Interest and investment income Interest experise Other Interest and other net KARNINGS BEFORE PROVISION FOR INCOME TAXES Provision for income taxes NET EARNINGS Basie weighted average common shares BASIC KARNINGS PER SHARE Dilated weighted average common shares DILUTED EARNINGS PER SHARE (73) 1,201 (74) 1,037 (93) 1,051 16 074 14,556 3.415 S21 1.137 9.78 1.143 S 9.73 1.28 14,715 3,472 11,242 1.093 10.29 1.097 10.25 980 13,698 5.00 1610 ,1 711 1.184 729 5 Fu2019 and 2017 www di un winstood will THE HOME DEPOT, THC Consolidated Statements of Comprehemiy income in won Net caming Hiwal 2019 $11.342 Fiscal 2018 S71.121 Fiscal 2017 SKO 311 5.1 N Oil comprehensive inclus Foi curteils-translation diments Chades of Ch Total other compensive income to COMPREHENSIVE INCOME 13673 53 (1 301 64 SIT 26 30 STOOLS SR In the fi Annual Report of The Home Depot, Inc THE NOME DEPOT, INC. Consolidated Statements of Stockholders' Equity Fiscal 2019 Fiscal 2018 Fiscal 2017 89 89 5 88 1 89 89 89 10,578 172 251 11.001 10,192 104 282 10.578 9,787 132 273 10.192 35,519 ne millions Common Stock: Balance at beginning of year Shares issued under employee stock plans Balance at end of year Pald-in Capital: Balance at beginning of year Shares issued under employee stock plans Stork-based compensation expense Balance at end of year Retained Earnings Balance at beginning of your Cumulative effect of accounting changes Net earnings Cash dividends Other Halance at end of year Accumulated Other Comprehensive Income (Loss)! Balance at beginning of year Cumshitive effect of accounting changes Foreign currency translation adjustments Cash flow hedges, net of tax Other Halance at all of year Treasury Stock: Balance at being of year Repurses of conun stock Balance ute of year Total holde detit) quity 46,421 26 11.242 (5.959) 39,935 75 11.121 0.70) (41) 46,423 8,630 (4.212) 2 39.935 51,729 (566) (772) ( (167) 267) 311 17.39) (566) (1) 158,196) 200D 165,196 563.116) 5.1 SYUTIN (40,193) (8.00 48.1996 5 1.454 2013 Fiscal 2019 Fiscal 2018 Fiscal 2017 $ 11,242 S 11,121 $ 8,630 2,296 251 2,062 273 - 2,152 282 247 33 (1.244) (257) 743 (170) (593) (135) 68 2034 44 202 184 13,723 139 (84) (10) 352 128 29 92 420 80 (42) 26 (103) 13.038 12.031 (2.678) in millions CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings Reconciliation of net earnings to net cash provided by operating activities: Depreciation and amortization Stock-based compeisation expense Impairment loss Changes in receivables, net Changes in merchandise inventories Changes in other current assets Changes in accounts payable and accrued expenses Changes in deferred revenue Changes in income taxes payable Changes in deferred income taxes Other operating activities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Payments for businesses acquired, net Proceeds from sales of property and equipment Other imesting activities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: (Repayments o proceeds from short-term delt.net Proceeds from long-term dele, net of discounts and premium Repayments of long-term debt Repurchases of conmonstek Proceeds on sales of conmon stock Clash dividenche Other Financing activities Net cashed in financing activities Change in cash and cash equivalents Ellest of exchange rate changes on cash and cah equivalent Cash and cash equivalents at beginning of you Cash and cheyvalents it end of wa SUPPLEMENTAL DISCLOSURES: Cash paid for inte Cash paid for latest of interest capitale No capital especies (2.442) (21) 33 14 12,416) (1.897) (374) 47 (4) 37 (12) 2.650 2.22% 220) 3.466 (1 209 19.963 (365) 3,420 (1.070) (6,9651 280 (5.95 (176) 10.4 850 2.991 (543) 18.00) 255 (4.212 211 (NX70 (4,704) 20 (120) (1.70) (191 1.505 134 1.778 3.230 1.112 136 5.774 105 2x 150 Refer to the financial statements of The Home Depot in Appendix A (Note: Fiscal 2019 for The Home Depot runs from February 4 2019. to February 2, 2020. As with many retail companies. The Home Depot labels the period "Fiscal 2019" even though it ends in the 2020 calendar year. The label "Fiscal 2019" is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements.) Required: 1. How much did The Home Depot's sales revenue increase or decrease in the year ended February 2, 2020? . Increased $121 million) Decreased $121 million) Increased $2,022 (million) O Decreased $2,022 (million) - What is the largest expense on the income statement for the year ended February 2, 2020, and how much did it change from the previous year? Cost of Sales, which increased $1,610 (million) O Selling, General and Administrative Expenses, which decreased $331 (million) Selling, General and Administrative Expenses, which increased $227 million) Cost of Sales, which decreased $1.610 million) 3. Which of the following was The Home Depot's net profit margin in the year ended February 2, 2020? 34.1 percent O 10.2 percent $10.29 $37,572