Home Depot Partial Consolidated Balance Sheet (assets) from p. 32 of Form 10-K as of February 1, 2015 THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS amounts in millions, except share and per share data Febggiirs'y 1' Febgng 2' ASSETS Current Assets: Cash and Cash Equivalents 5 1,723 $ 1,929 Receivables, net 1,484 1,398 Merchandise Inventories 1 1,079 1 1,057 Other Current Assets 1,016 895 Total Current Assets W W Property and Equipment, at cost 38,513 39,064 Less Accumulated Depreciation and Amortization 15,793 15,716 Net Property and Equipment 22,720 23,348 Goodwill 1,353 1,289 Other Assets 571 602 TotalAssets 5 39,946 $ 40,518 Home Depot Largest home improvement specialty retailer, with more than 2,200 retail stores in North America - Home Depot had revenues of more than $83 billion for its fiscal year ending February 1, 2015 Excerpt from Notes to Financial Statements on p. 35 36 of Form 10-K (Note 1) February 1, 2015, Paragraph 1 Merchandise Inventories The majority ofthe Company's Merchandise Inventories are stated at the lower of cost (first-in, firstout) or market, as determined by the retail inventory method. As the inventory retail value is adjusted regularly to reflect market conditions, the inventory valued using the retail method approximates the lower of cost or market. Certain subsidiaries, including retail operations in Canada and Mexico, and distribution centers, record Merchandise Inventories at the lower of cost or market, as determined by a cost method. These Merchandise Inventories represent approximately 26% of the total Merchandise Inventories balance. The Company evaluates the inventory valued using a cost method at the end of each quarter to ensure that it is carried at the lower of cost or market. The valuation allowance for Merchandise Inventories valued under a cost method was not material to the Consolidated Financial Statements of the Company as of the end of fiscal 2014 or 2013. Excerpt from Notes to Financial Statements on p. 35 - 36 of Form 10-K (Note 1) February 1, 2015, Paragraph 2 Merchandise Inventories Independent physical inventory counts or cycle counts are taken on a regular basis in each store and distribution center to ensure that amounts reflected in the accompanying Consolidated Financial Statements for Merchandise Inventories are properly stated. During the period between physical inventory counts in stores, the Company accrues for estimated losses related to shrink on a storebystore basis based on recent shrink results and current trends in the business. Shrink (or in the case of excess inventory, "swell") is the difference between the recorded amount of inventory and the physical inventory. Shrink may occur due to theft, loss, inaccurate records for the receipt of inventory or deterioration of goods, among other things