THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 2, 2020 February 3, 2019 in millions, except per share data Assets $ Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total assets 2,133 $ 2,106 14,531 1,040 19,810 22,770 5,595 2,254 807 51,236 $ 1,778 1,936 13,925 890 18,529 22,375 2,252 847 44,003 $ Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Current operating lease liabilities Other accrued expenses Total current liabilities Long-term debt, excluding current installments Long-term operating lease liabilities Deferred income taxes Other long-term liabilities Total liabilities 1,339 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 54,352 2,611 16,716 26,807 491 1,867 45,881 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,786 shares at February 2, 2020 and 1,782 shares at February 3, 2019; outstanding: 1,077 shares at February 2, 2020 and 1,105 shares at February 3, 2019 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 709 shares at February 2, 2020 and 677 shares at February 3, 2019 Total stockholders' (deficit) equity Total liabilities and stockholders' equity 89 11,001 51,729 (739) 89 10,578 46,423 (772) (65,196) (3,116) 51,236 $ (58,196) (1,878) 44,003 $ THE HOME DEPOT, 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 1,989 17,864 1,811 in millions, except 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 expense Other Interest and other, net Earnings before provision for income taxes Provision for income taxes Net earnings 19,513 1,870 247 21,630 15,530 21,729 15,843 19,675 14,681 (93) (73) 1,201 (74) 1,057 1,051 16 1,128 14,715 3,473 11,242 $ 974 14,556 3,435 11,121 $ 983 13,698 5,068 8,630 $ 1,093 Basic weighted average common shares Basic earnings per share 1,137 9.78 $ 1,178 7.33 $ 10.29 $ Diluted weighted average common shares Diluted earnings per share 1,097 10.25 $ 1,143 9.73 $ 1,184 7.29 $ THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal 2019 11,242 $ Fiscal 2018 11,121 $ Fiscal 2017 8,630 $ in millions Net earnings Other comprehensive income (loss): Foreign currency translation adjustments Cash flow hedges, net of tax Other Total other comprehensive income (loss) Comprehensive income 53 8 (267) 53 3 8 311 (1) (9) 301 8,931 64 11,306 $ (206) 10,915 $ $ THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Fiscal 2019 Fiscal 2018 Fiscal 2017 in millions Common Stock: Balance at beginning of year Shares issued under employee stock plans Balance at end of year $ 89 $ 89 $ 88 1 89 89 89 Paid-in Capital: Balance at beginning of year Shares issued under employee stock plans Stock-based compensation expense Balance at end of year 10,578 172 251 11,001 10,192 104 282 10,578 9,787 132 273 10,192 35,519 Retained Earnings: Balance at beginning of year Cumulative effect of accounting changes Net earnings Cash dividends Other Balance at end of year 46,423 26 11,242 (5,958) (4) 51,729 39,935 75 11,121 (4,704) (4) 46,423 8,630 (4,212) (2) 39,935 (566) (867) Accumulated Other Comprehensive Income (Loss): Balance at beginning of year Cumulative effect of accounting changes Foreign currency translation adjustments Cash flow hedges, net of tax Other Balance at end of year (772) (31) 53 8 3 (739) (267) 53 8 (772) 311 (1) (9) (566) Treasury Stock: Balance at beginning of year Repurchases of common stock Balance at end of year Total stockholders' (deficit) equity (58,196) (7,000) (65,196) (3,116) $ (48,196) (10,000) (58,196) (1,878) $ (40,194) (8,002) (48,196) 1,454 $ THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal 2019 Fiscal 2018 Fiscal 2017 $ 11,242 $ 11,121 $ 8,630 2,062 2,296 251 273 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 compensation 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 2,152 282 247 33 (1,244) (257) 743 80 (42) 26 (103) 13,038 (170) (593) (135) 68 334 44 202 184 13,723 139 (84) (10) 352 128 29 92 420 12,031 (2,678) Cash Flows from Investing Activities: Capital expenditures Payments for businesses acquired, net Proceeds from sales of property and equipment Other investing activities Net cash used in investing activities (2,442) (21) 33 14 (2,416) (1,897) (374) 47 37 (12) (2,653) (4) (2,228) Cash Flows from Financing Activities: (Repayments of) proceeds from short-term debt, net Proceeds from long-term debt, net of discounts and premiums Repayments of long-term debt Repurchases of common stock Proceeds from sales of common stock Cash dividends Other financing activities Net cash used in financing activities Change in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (365) 3,420 (1,070) (6,965) 280 (5,958) (176) (10,834) 236 119 1,778 2,133 $ (220) 3,466 (1,209) (9,963) 236 (4,704) (26) (12,420) (1,798) (19) 3,595 1,778 $ 850 2,991 (543) (8,000) 255 (4,212) (211) (8,870) 933 124 2,538 3,595 $ $ Supplemental Disclosures: Cash paid for income taxes Cash paid for interest, net of interest capitalized Non-cash capital expenditures 3,220 $ 1,112 136 3,774 $ 1,035 4,732 991 150 248 Home Depot: Using 2017 as the base year, prepare a Percentage Trend Analysis for Net Sales. What was the increase/decrease in dollars and percentage, from the 2017 base year, for 2018 and 2019? Use - sign for negative amount, as needed. Use commas, as needed. Round to whole percentage. 2017 to 2018: % 2017 to 2019: % Home Depot: Compute the Profit Margin Ratio for 2019 and 2018. Round to whole percentage. 2019: % 2018: %