Pro Forma Income Statement

Report Date 2018 2017 2016 2015

Scale Millions Millions Millions Millions

Net sales 71,309 68,619 65,017 59,074

Cost of sales 48,401 46,185 43,343 38,504

Gross margin 22,908 22,434 21,674 20,570

Selling, general and administrative expenses 17,413 14,444 14,375 14,105

Depreciation and amortization expenses 1,477 1,404 1,453 1,494

Operating income 4,018 6,586 5,846 4,971

Interest expenses 624 633 645 552

Loss on extinguishment of debt 0 464 0 0

Pre-tax earnings 3,394 5,489 5,201 4,419

Income tax provision 1,080 2,042 2,108 1,873

Net earnings 2,314 3,447 3,093 2,546

Additional Information:

Report Date 2018 2017 2016 2015

Scale Millions Millions Millions Millions

Net cash flows from operating activities 6,193 5,065 5,617 4,784

THE HOME DEPOT, INC. (NYSE: HD)

Pro Forma Balance Sheet Common-Size Balance sheet

Report Date 2018 2017 2016 2015 FY 2018 FY 2017 FY 2016 3 year average

Scale Millions Millions Millions Millions (In Percentages) (In Percentages) (In Percentages) (In Percentages)

Assets Assets

Current assets: Current assets:

Cash and cash equivalents 1,778 3,595 2,538 2,216 Cash and cash equivalents

Receivables, net 1,936 1,952 2,029 1,890 Receivables, net

Merchandise inventories 13,925 12,748 12,549 11,809 Merchandise inventories

Other current assets 890 638 608 569 Other current assets

Total current assets 18,529 18,933 17,724 16,484 Total current assets

Net property and equipment 22,375 22,075 21,914 22,191 Net property and equipment

Operating lease right-of-use assets 0 0 0 0 Operating lease right-of-use assets

Goodwill 2,252 2,275 2,093 2,102 Goodwill

Other assets 847 1,246 1,235 1,196 Other assets

Total assets 44,003 44,529 42,966 41,937 Total assets

Liabilities and Stockholders Equity Liabilities and Stockholders Equity

Current liabilities: Current liabilities:

Short-term debt 1,339 1,559 710 350 Short-term debt

Accounts payable 7,755 7,244 7,000 6,565 Accounts payable

Accrued salaries and related expenses 1,506 1,640 1,484 1,515 Accrued salaries and related expenses

Sales taxes payable 656 520 508 476 Sales taxes payable

Deferred revenue 1,782 1,805 1,669 1,566 Deferred revenue

Income taxes payable 11 54 25 34 Income taxes payable

Current installments of long-term debt 1,056 1,202 542 77 Current installments of long-term debt

Current operating lease liabilities 0 0 0 0 Current operating lease liabilities

Other accrued expenses 2,611 2,170 2,195 1,941 Other accrued expenses

Total current liabilities 16,716 16,194 14,133 12,524 Total current liabilities

Long-term debt, excluding current installments 26,807 24,267 22,349 20,789 Long-term debt, excluding current installments

Long-term operating lease liabilities 0 0 0 0 Long-term operating lease liabilities

Deferred income taxes 491 440 296 379 Deferred income taxes

Other long-term liabilities 1,867 2,174 1,855 1,965 Other long-term liabilities

Total liabilities 45,881 43,075 38,633 35,657 Total liabilities

Shareholders equity: Shareholders equity:

Common stock 89 89 88 88 Common stock

Paid-in capital 10,578 10,192 9,787 9,347 Paid-in capital

Retained earnings 46,423 39,935 35,519 30,973 Retained earnings

Accumulated other comprehensive loss (772) (566) (867) (898) Accumulated other comprehensive loss

Treasury stock (58,196) (48,196) (40,194) (33,194) Treasury stock

Total stockholders (deficit) equity (1,878) 1,454 4,333 6,316 Total stockholders (deficit) equity

Total liabilities and stockholders equity 44,003 44,529 42,966 41,973 Total liabilities and stockholders equity