. 2023 employed,100 associates 46,200 salaried remainder hourly. geographic makeup Location Total Workforce United States,200. Canada,800. Mexico,800. Other. Total,100


Includes associates China Vietnam India.


Talent Attraction Development. hire associates customer-like experience jobseekers speed personalization recruiting process. employ targeted marketing careers website personalizes experience location behavior. Jobseekers apply desktop mobile devices. self-service schedule reschedule-hire activities mobile device. quick hiring process candidates jobs.


offer associates benefit development opportunities. Home Depot University program key offering content platforms instructor-led classes e-learning mobile learning online resources. invest growth development coaching leader support learn skills mobile applications. equip leaders tools develop teams programs.


store leadership structure associate development engagement alignment. fiscal 2023 store leadership structure new management positions customer service increasing managers floor. frees time associate training development. improved customer associate experience new career paths. changes senior leadership structure outside sales service global store organization.


Engagement. emotional commitment to Home Depot. vital to culture success. create engaging workplace listening associate feedback. provide pulse check surveys customers Company jobs leaders. annual Voice of the Associate survey engagement. feedback experience. digital engagement platform connections co-workers Company leaders. programs recognize associates exceptional customer service core values.


Diversity Equity Inclusion. diverse equitable inclusive Company key success. maintain associates valued belonging experience business communities. Office Diversity Equity Inclusion supports associates suppliers communities.


fiscal 2023 demographic data U. S. associates Population Minority White Undisclosed Female Male. Workforce. Managers Above. Officers#74%


include.


identified priorities diversity equity inclusion. associate supplier community enhance experience workplace marketplace community Engagement


inclusivity create environment associate included valued


visibility spend subcontractors


pipeline diverse suppliers engagement


organizations close wealth gap


Compensation Benefits. competitive compensation benefits. wage investments circumstances. profit-sharing program semi-annual cash awards business. benefits healthcare wellness vacation leave parental leave time off 401(k) match ESPPs personal finance education family support educational assistance.


commitment reduce impact operations environment business stronger resilient. approach extends products services store construction supply chain packaging ethical sourcing program. sustainably climate reduce environmental impact products responsibly set goals progress.


2023 ESG Report. homedepot./responsibility includes goals initiatives. reduce environmental footprint environmentally focused programs initiatives.


Science Targets Emissions Reductions. 2023 submitted goals Scope 1 2 3 Paris Agreement enhanced Scope 3 2024. plan reduce Scope 1 2 3 Category 11 42% 2030 2020. SBTi validated goals Scope 1 2 target. 5-degree Celsius trajectory. reduce Scope 1 2 emissions. 1% year 40% reduction 2030 50% reduction 2035.


Store Operations Renewable Energy. reduced. store electricity consumption LED lighting energy-efficient HVAC demand mitigation. invested-site energy off-site wind solar. renewable electricity Home Depot 2030.


. Eco program carbon emissions circularity responsible chemistry sustainable forestry water use. STAR® appliances WaterSense® bath faucets showerheads aerators toilets irrigation controllers LED bulbs tankless water heaters. save utility reduce environmental impact 2023 goals energy water usage. 2028 85% U. S. Canada sales rechargeable battery. resources project tutorials environmental.


Recycling. fluorescent light bulbs rechargeable lead acid batteries.


Strategy. committed increasing environmental standards encourage suppliers invest innovative products. evaluate Strategy. 2023 updated Strategy chemicals private-brand patio home décor products U. S. Canada end 2025.


Sustainable Packaging. eliminating expanded polystyrene foam polyvinyl chloride private-brand products. working suppliers packaging recyclable less material single-use plastics. fiscal 2023 goal private brand fiber packaging. compostable recyclable 2027.


Supply Chain Optimization. space sharing optimization maximize mile.


CDP Participation.-standing CDP Climate Change. independent not-for-profit system measure disclose manage environmental information. February 2024 “A-” Climate Change submission leadership improved action. Forests 2023 “C” first submission.


commitment sustainable operations resulted environmental awards. 2023 received awards EPA WaterSense® water-efficient products EPA Safer Choice safer chemicals EPA ENERGY STAR® energy efficiency.


core “Giving Back support communities. Home Depot Foundation homes. veterans disasters training tradespeople labor gap. Company Foundation industry training programs tradespeople home improvement Path to Pro program career networking site. Depot volunteers extend mission Foundation donating thousands volunteer hours.


partner suppliers organizations DEI efforts. Office of DEI partners organizations close wealth gap enhance education outcomes. supplier base growth business success communities.


see 2023 ESG Report communities.


company U. international operations subject to laws. foreign jurisdictions rules regulations governing bodies. Compliance laws material effect capital expenditures results competitive position.


. homedepot. com. Investor Relations Annual Reports 10-K Quarterly Reports 10-Q Current Reports 8-K Proxy Statements Forms 3 4 5 amendments SEC.


include website addresses reference. information not incorporated.


business financial condition risks uncertainties. investment decision consider risk factors information report filings SEC. Additional risks uncertainties impair operations. future prospects trading value. read Risk Factors Part II Item 7. Discussion Analysis Financial Condition Results Operations consolidated financial statements Item 8.


competition prices decrease market share.


industry competitive fragmented evolving. face competition retailers suppliers service providers distributors manufacturers.


competitors multichannel online home improvement retailers hardware stores electrical plumbing houses lumber yards. showrooms discount paint warehouse clubs MRO distributors home décor home improvement services rental. internet facilitates price transparency shopping.


compete customer experience price quality product availability assortment innovation delivery in-store online. store location presentation shopping experience. Pros sales competitive credit pricing project planning tools product lot quantities. customers online faster delivery low-price free shipping convenient pickup. delivery pickup times costs supply chain interconnected retail capabilities. Failure delivery pickup impact profit margins demand.


use marketing advertising programs drive traffic compete assess adjust changes competitive landscape. pressures from competitors aggressive pricing liquidation events inability adapt changing landscape affect prices margins demand. respond superior customer experience effective sales marketing advertising programs market share financial performance. fiscal 2023 inflationary rising interest rate environment long-term outlook difficult predict. experience inflation deflation beyond adjust prices impacting demand margins affect price.


respond consumer needs expectations trends affect relationship demand products market share.


success business depends on trends demographics consumer preferences expectations needs macroeconomic environment unexpected weather disasters public health issues managing inventory excellent customer experience. difficult to predict products services customers demand. customers expect personalized experience collect use retain protect customer data important. subject to external factors legislation data privacy technologies artificial data security customer expectations. customer different needs expectations evolve demographics. preferences expectations sustainability changing. impacts COVID-19 subsided customers shifted spending to travel dining home improvement spending. If differentiate shopping experience impact sales market share.


Customer expectations demanding. Customers use technology electronic devices platforms compare prices read reviews availability purchase new channels tools experience change. Pros look for capabilities sales support competitive credit pricing project planning tools product quantities complex purchase needs. purchased customers seek options delivery advance ordering digital expect quick timely low-price free delivery pickup. adapt changes online in-store experience delivery options. coordinated operation physical stores distribution facilities online platforms fundamental strategy. guarantee current future fulfillment options expectations delivery pickup times options costs. online sales fulfillment traffic opportunities cross-selling sales affect financial performance. online sales higher costs delivery profit margins.


Failure provide relevant experience technological developments expectations maintain inventory quick delivery pickup differentiate experience primary groups implement localized merchandising


consumer preferences home improvement needs affect relationship demand market share.


positive brand reputation critical business success damaged customers associates suppliers vendors shareholders business results price stock.


brand reputation critical attracting customers associates suppliers vendors. manage protect. Negative incidents erode trust confidence adverse publicity damage undermine confidence reduce demand affect attract regulatory scrutiny impact relationships suppliers. business practices positions attributed third risks brand. position on social environmental governance political public policy economic geopolitical sensitive issues lack transparency harm reputation. criticized ESG-related initiatives goals failure. ESG-related data processes reporting incomplete inaccurate face regulatory scrutiny adverse reputational impacts. Customers social media feedback. Negative sentiment misinformation fraudulent accounts impact brand reputation.


initiatives interconnected retail strategy impact financial results benefits.


years investments interconnected retail strategy enhancing expanding supply chain developing differentiated capabilities expanding store base acquisitions. investments streamline operations high-quality service simplify interactions interconnected shopping experience expand sales complex purchase needs fastest efficient reliable delivery network home improvement products. requires investment operations information technology new processes systems support. Investment involves real estate projects distribution network locations. stores key hub shopping experience. aging store base requires maintenance investment space reallocation. locations new stores.


manage volume timing location cost investments projects changes. Failure strategy impact business operations financial results. cost potential problems defects interruptions initiatives third-party providers online tools services artificial support systems securing store facility locations impacts inventory disrupt efficiency product availability complexity impact profitability. investments shopping experience store base supply chain capabilities provide benefits take longer impact competitive position financial condition results cash flows.


unable manage expand alliances relationships suppliers brand products unable execute strategy competitors.


product differentiation formed alliances relationships with brand names. developed relationships proprietary products comparable national brands. proprietary products differentiate carry higher margins. manage alliances maintain terms identify alternative sources for products execute product differentiation impact sales gross margin results. suppliers’ business practices positions attributed to us controversies reputation identify alternative sources.


strategic transactions involve risks business financial results realize benefits.


consider strategic transactions mergers acquisitions investments alliances growth market expansion strategies. expect transactions sales cost savings synergies enhanced capabilities benefits. Assessing viability benefits uncertainty. determine integration target company’s products services associates information technology financial human resources compliance systems processes manage integration corporate structure. Integration complex time-consuming delayed achieve synergies benefits. integration complexity financial internal controls technology cybersecurity operations difficult. acquisitions fail business strategy competition additional risks liabilities. transactions regulatory uncertainty. changing enforcement costs delays outcome. failure transaction synergies benefits slower growth costs impairment goodwill business financial condition results.


success retain associates service support strategic initiatives labor costs.


customers expect high service product knowledge from associates. attract develop retain qualified associates maintain productive relationship. labor needs subject to factors market pressures unemployment insurance legislation labor changing demographics expectations public health concerns reputation. compete with retail businesses for hourly positions invest resources in training motivating satisfaction. high turnover rates increased training retention costs. challenges recruiting retaining wage pressure flexible scheduling health safety concerns remote environment. subject labor union efforts may decrease operational flexibility efficiency impact operations reputation. competition increased salaries benefits costs impair recruit retain


adverse impact business financial results.


execute interconnected retail strategy supply investments attract retain skilled professionals technology. market competitive. inability provide wages benefits competitive affect. changes market compensation rates affect labor costs.


execute organizational changes management transitions motivate retain associates critical business success. locate attract retain associates manage leadership transitions strategy quality service financial performance.


failure information affect business.


rely on information technology systems personnel collect manage protect transactions data. systems managed by third-party providers cloud platform providers. rely on integrity security access to systems operational financial data capabilities sales customer supplier associate job applicant partner demand forecasting merchandise ordering inventory replenishment supply chain management payment processing order fulfillment customer service post-purchase matters. systems must maintain update. Delays in maintenance effectiveness security risks. third-party systems subject to damage malicious activity from power outages failures viruses data breaches theft misuse cyber-attacks ransomware natural disasters public health concerns conflicts war terrorism civil unrest outages redundancy design usage errors malfeasance by associates contractors providers.business activities shifted online store support associates remote increased risk failure technology infrastructure cybersecurity threats networks.


we third-party providers maintain systems risk integrity security not always. experience errors interruptions delays cessations information technology infrastructure disrupt operations impair data security impact communications financial banking systems costly time resource-intensive reputation relationship customers associates suppliers shareholders regulators. expend resources insufficient recourse against providers.


making investments in information technology systems infrastructure personnel strategic partners third-party service providers. investments involve replacing outsourcing technology processes changes migration cloud maintaining enhancing legacy systems designing acquiring new systems functionality testing artificial


artificial intelligence. risks impacts loss corruption data security controls cost overruns delays disruption business reporting requirements. system difficulty operational challenges security failures reputational harm increased costs business operations relationships results.


Disruptions retail strategy negative experiences.


information technology systems provide improved shopping interconnected experience electronic devices digital platforms. use digital platforms sales channels inspiration product information sales. multiple online communities digital platforms knowledge centers inform assist interact. retail industry evolving expanding increase sales online mobile applications. increased volume delivery options without interruption. respond to new developments changing customer preferences digital experience. enhance online digital properties personalized user-friendly interface. Disruptions delays failures performance issues systems impair value impact sales relationship.


supply chain factors merchandise impact business.


Disruption logistics chain network COVID-19 affect inventory customer demand lost sales costs damage reputation. disruptions from distribution centers supply chain providers weather events cybersecurity natural disasters trade disputes sanctions customs actions quotas tariffs taxes strikes lock-outs work stoppages shortages labor shipping capacity constraints raw material contract disputes interruptions increased costs unavailability fuel conflicts sanctions terrorism public health issues civil unrest factors beyond control. ports. impacted by capacity constraints congestion delays labor disputes security issues weather events natural disasters.


COVID-19 pandemic disruptions domestic international supply chain affect flow availability products. alternate sources cost more higher transportation costs impact profitability financial condition. Increased demand online purchases impact fulfillment operations third-party carriers delays out-of-stock levels.


suppliers experienced labor shortages distribution centers due COVID-19 pandemic competitive labor market. shortages impact products stores customers.


circumstances impair lost sales costs damage reputation impact business performance financial condition.


store environment sales costs experience brand reputation.


customers associates expect safe store environment loss theft inventory. shrink organized retail crime. initiatives address shrink minimize theft safety require changes increase costs margins impact customer experience. unsafe environment negative incidents erode trust confidence sales morale retention brand reputation.


privacy customer associate job applicant partner Company information costs reputational damage litigation.


business involves collection use retention management transmission deletion personal information internet activity preferences payment from customers associates job applicants business partners confidential Company information. work with third-party providers technology systems services. systems vulnerable to data protection cybersecurity risks. Unauthorized parties through fraud confidentiality integrity availability. Hardware software applications may contain vulnerabilities bugs defects security. risk software coding vulnerabilities back doors unauthorized access. increased remote workforce expanded attack areas. risk cyber-attacks increased geopolitical conflicts trade diplomatic tensions. conflicts Europe Middle East nation-state actors may launch retaliatory cyber-attacks supply disruptions-motivated business operations data compromise. Nation-state actors cyber-attacks espionage monetary gain disruption destruction.nation-state cyber criminals attack vectors passwords social engineering phishing smishing vishing identity spoofing ransomware malware supply chain compromises man-in-middle denial service attacks. unauthorized access service changing difficult.


-evolving cybersecurity threat landscape third providers partners evaluate adapt systems processes security environment companies. no guarantee measures all threats vulnerabilities data security breaches system compromises misuses. significant compromise breach data security misuse data costs lost sales fines lawsuits regulatory investigations damage reputation. techniques unauthorized access service sabotage systems change anticipate implement preventative measures. may discover security breach vulnerability compromise after incident. cyber insurance coverage


liabilities costs incurred insurance economically reasonable terms insurer deny future claim.


Data governance failures affect reputation business. business depends on customers’ job partners’ personal information. Events trust inadequate disclosure information failing keep systems personal information secure from attack theft damage loss unauthorized disclosure access affect brand harm reputation.


regulatory environment data privacy cybersecurity changing rigorous requirements business. implementation complex. Maintaining adherence privacy requirements requires effort cost changes business practices collect use data customer. regulators aggressive enforcement private increasing larger judgments settlements. Failure fines sanctions investigations lawsuits negative publicity reputational harm lose confidence cybersecurity data privacy business.


payment risks costs fraud theft liability disrupt business.


accept payments credit debit cards private label credit cards cash electronic payments checks digital wallets loan programs trade credit gift cards offer new payment options. Acceptance subjects to rules regulations contractual obligations compliance requirements payment network rules data security standards certification electronic funds transfers. requirements change compliance difficult costly. certain pay interchange fees costs incur losses operating costs. rely on third parties payment processing services. If systems compromised disrupt business. payment methods selling channels subject to potential fraud theft. fail comply rules data compromised liable for costs subject fines transaction fees. anticipate expanding trade credit purchase needs. If fail offer attractive terms underwriting criteria competitive sales. If trade credit Pros unable make payments losses.customers could lose confidence in payment types expect demand methods competitive disadvantages shift changes higher costs. business results affected.


business seasonal climate change disasters catastrophic impact operations.


disasters hurricanes fires floods droughts water tornadoes earthquakes terrorism shooter health concerns pandemics quarantines civil unrest conflicts war


sanctions government responses disruptions catastrophic events operations financial performance. affect consumer spending confidence disposable income home improvement construction. affect work force prevent customers stores facilities. disrupt operations stores support centers supply chain distribution network inventory utility services. affect information systems digital platforms transact fulfill orders communicate stores facilities management access financial banking systems. Unseasonable extreme weather conditions precipitation temperatures inventory incompatible needs.


long-term impacts climate change physical transition regulatory technology changes widespread unpredictable. changes affect availability cost consumer products commodities energy impact ability procure goods business optimal.


catastrophic events interruption costs changes behavior losses property equipment revenue profitability.


fail identify relationships qualified suppliers experience financial difficulties ability access products standards quality affected.


buy products from suppliers procure materials. identify relationships suppliers quality responsible access products challenge. products by economic political instability civil unrest military conflicts war sanctions terrorism violence public health issues pandemics financial instability noncompliance laws contract disputes trade restrictions tariffs currency exchange rates disruptions logistics information technology inability sell products customs actions holds detentions raw material shortages noncompliance standards controversies factors beyond control. access products demands sales gross margin results impacted.


Failure product service quality safety responsible sourcing laws damage reputation litigation impact sales results.


Product service quality issues impact confidence brands Company. standards expectations safety quality responsible business practices lost sales increased costs legal financial reputational risks governmental enforcement. product safety concerns health expose litigation enforcement costly recalls liabilities. indemnification insurance coverage suppliers business financial condition. insurance indemnification reputation loyalty. responsible sourcing focus government regulators. suppliers comply with responsible sourcing standards supply chain transparency health safety environmental laws regulations


compensation hours work prohibitions on child forced labor. suppliers must comply with Company policies law including jurisdictions raw materials timber minerals products. responsible sourcing audit process dependent on suppliers to ensure products services comply with standards law information source. supply chain products may attenuated source components timber minerals. supplier non-compliance with standards law to litigation enforcement costly product recalls inability sell products customs actions holds detentions exclusions impacted reputation termination supplier relationships liabilities.


products regulatory liability intellectual property reputational.


product-related risks expand proprietary product offerings increased risks role in design manufacture marketing sale. risks include responsibility regulatory requirements increased liability recall reputational risks responsible. product differentiation strategy protect proprietary rights navigate avoid claims. increase sales proprietary products affect suppliers’ relationships. failure address risks damage reputation business results financial condition.


manage installation services lost sales fines lawsuits damage contractor licenses.


act general contractor installation services DIFM customers third-party licensed installers. subject to regulatory requirements risks background checks licensing permitting environmental risks quality work. established processes manage customer satisfaction. EPA investigation consent decree fail manage processes documentation inspections oversight suffer lost sales fines lawsuits enforcement actions claims property damage personal injury. damage reputation loss licenses affect business.


Uncertainty housing market economic climate health factors affect demand costs financial performance.


financial performance depends on housing home improvement markets economic conditions gross domestic product. Adverse conditions political social climate impact customers’ confidence financial condition. factors beyond control unemployment foreclosure rates inventory loss theft interest rate fluctuations inflation deflation fuel energy costs raw material shortages labor healthcare costs financing credit markets tax rates policy


weather natural disasters climate terrorism violence active shooter public health issues pandemics geopolitical military conflicts war sanctions civil unrest affect demand products costs financial performance. merchandise categories impacted by inflation global supply chain disruptions uncertain economic geopolitical environment. If inflation deflation adjust prices without impacting demand margins. central banks raised interest rates impacted demand shifts consumer purchasing from to. MRO customers higher spend use trade credit. ability pay on economic strength industry. If repay trade credit default risk cash flow affect results operations.


costs increase changes expanded enforcement new laws regulations.


subject to U. S. local international business. new laws adopted expanded enforcement interpretation complex. change political economic social events. Changes minimum wage living wage exempt non-exempt employees contractors wage labor regulations healthcare data privacy cybersecurity sale marketing pricing products transportation logistics interstate delivery Department of Transportation regulations international trade supply chain transparency sourcing raw materials taxes carbon dioxide emissions competition antitrust ESG programs transparency reporting. unclaimed property energy costs consumption hazardous waste disposal environmental matters increase costs impact sales operations profitability.


regulators customers investors associates stakeholders on cybersecurity data privacy ESG disclosures. changing rules regulations expectations increased expenses risks litigation enforcement increased management time. Initiatives goals ESG difficult expensive technologies cost effective reputational regulatory risks disclosure.


manage challenges international markets international operations sales profitability impacted.


retail operations international markets risks U. S. operations costs difficulties international operations. operations local laws customs U. S. laws constraints political social economic conditions. Risks include tax consequences trade disputes tariffs import taxes controls inability sell customs actions holds detentions intellectual property rights limitations ports Foreign Corrupt Practices Act anti law conflicts sanctions responses


labor laws environmental sourcing challenges local suppliers. trade tensions U. S. China led tariffs. retail products sourced outside U. S. tax trade policies tariffs impact cost demand profitability sales. countries change trade policies import tariffs. trade. operations international markets risk foreign currency exchange rates impact sales profitability.


commodity affect demand sales profit margins.


Prices commodity products lumber materials historically volatile domestic supply demand inflationary pressures labor costs competition market speculation regulations tariffs trade restrictions disasters conflicts delays delivery. conflicts Europe Middle East inflationary pressures commodity prices fuel energy shipping costs. changes prices lumber affect demand sales profit margins. cost inflation adjust prices impacting demand.


incur property losses.


self-insured risk categories general liability property loss compensation employee medical employment wage automobile cybersecurity privacy catastrophic risks above self-insurance. types amounts insurance vary risk retention regulatory requirements. significant claims costs failure disputes financial condition.


accounting standards assumptions estimates judgments affect results.


GAAP accounting pronouncements guidelines interpretations asset impairment inventories lease obligations self-insurance vendor allowances tax matters business combinations complex subjective assumptions estimates judgments. new standards change financial performance condition. systems processes controls operating costs.


involved in legal regulatory governmental enforcement proceedings predict outcomes affect operations increase costs.


involved in legal proceedings regulatory matters government inquiries consumer employment tort litigation business. Litigation unpredictable outcome require actions operations adverse verdicts fines results. involvement in lawsuits investigations compliance with settlements consent decrees expense divert attention impact reputation Company.


recognize importance assessing risks cybersecurity. implemented processes technologies controls. program prioritizes mitigation integrity resilience systems. leverage National Cybersecurity Framework. adhere Payment Card Industry Data Security Standards. cybersecurity risk management integrated enterprise risk management framework.


cybersecurity efforts team led Chief Information Security Officer. designs implements data security cybersecurity programs risk assessments training associates. security risks.


Monitoring Mitigation. maintain tools services cyber risks. teams conduct audits penetration tests. engage third parties cybersecurity risk assessment provide expertise. maintain security operations center staffed detect threats. incident procedures respond recover. policies reviewed regulatory requirements threat landscape. classification retention policies unauthorized exposure data. maintain cybersecurity insurance losses incidents.


Company has Incident Response Team cross-functional expertise investigate coordinate remediate communicate cybersecurity incident. uses incident response plan detect recover cybersecurity incidents triage escalate investigate remediate comply legal obligations mitigate brand reputational damage. tabletop exercises processes plans technologies.


. provide data security privacy associates hire customized role-based training audiences. conduct awareness campaigns phishing email tests-hire.


Vendor Security. risk management program risk data type. perform diligence security risk assessments include obligations contractual arrangements.


Cybersecurity Risks. experienced cybersecurity incidents past fiscal year. face risks affect business strategy financial condition. risk management processes implemented future risks. describe risks threats previous business strategy financial condition Part I Item 1A. “Risk Factors”.


efforts secure digital environment data security privacy policies. cybersecurity overseen Board Audit Committee. quarterly reports from senior technology leaders Chief Information Officer CISO Chair Data Security Privacy Governance Committee. annually full Board meeting cybersecurity. receives presentations third-party experts.


CISO CIO joined Company 2021 consultant 2019. two-decade tenure security strategy programs. cybersecurity experience protecting data industries. Bachelor Science Information Systems achieved certifications Certified Information Security Manager Systems Security Professional Privacy Professional. leads team 500 associates cybersecurity.


three committees cybersecurity privacy data governance. led Data Security Privacy Governance Committee risks mitigation regulatory compliance. chaired Vice President Internal Audit CEO. meets quarterly supported Security Technology Risk Leadership Committee Privacy Data Governance Committee. reported Audit Committee Board.


Security Technology Risk Leadership Committee cybersecurity program. chaired CISO technology leaders representatives. Privacy Data Governance Committee. chaired Chief Privacy Officer cross-functional 20 departments. committees meet report Data Security.


table presents percentage owned leased facilities fiscal 2023 total square footage millions Stores. 3 Warehouses distribution centers. Offices. 8 Total.


stores ground leases.


operated 500 warehouses 2023.


Store Support Center Atlanta.


table presents U. S. store locations Puerto Rico. Virgin Islands Guam end 2023. Alabama Alaska Arizona Arkansas California#Massachusetts Rico Colorado Island Connecticut Carolina Delaware Dakota District Columbia Florida Georgia Guam Hawaii Hampshire Islands Idaho Jersey Illinois Mexico Indiana York Virginia Iowa Carolina#Wisconsin Kansas Dakota U. S. ##2,015


table presents store locations outside U. S. end 2023 Canada Alberta#Aguascalientes British Columbia California León Manitoba California Sur New Brunswick Newfoundland Nova Scotia Roo Ontario Luis Potosí Prince Edward Island#Sinaloa Quebec Federal Saskatchewan Mexico Total Canada#Tamaulipas Mexico


Company party to legal proceedings not party adverse effect financial position or results operations.


SEC regulations disclose federal environmental regulations monetary sanctions above threshold. Company uses threshold $1 million determining disclosure.


April 2021 civil consent decree U. S. Department Justice EPA Utah Massachusetts Rhode Island. decree required lead-safe practices installation services penalties failure third-party installers. first quarter 2023 EPA believes owe penalties violations documentation requirements. discussions basis penalties. predict penalties adverse effect financial condition cash flows. expect recoup fines third-party installers.


Equity Stockholder Purchases Securities


April 19, 1984 common stock listed NYSE. paid first cash dividend June 22, 1987 quarter. dividend earnings capital financial condition Board Directors.


February 28, 2024 106,000 common stock 5,075,000 banks brokers.


table shareholder returns S&P Retail Composite Index S&P 500 Index five years. $100 invested closing common stock NYSE last year February 2019 dividends reinvested. points year-end amounts last trading day. 3 2019 2 2020 31, 2022 29, 2023 28, 2024 Home Depot. S&P Retail Composite Index. S&P 500 Index.


table fourth quarter 2023 Shares Price Value Shares October 30, 2023 November 26, 2023,247.,293,250,745 November 27, December 24, 2023,459,975.,703,264,193 December 25, 2023 January 28, 2024,244.,255,680,392,466.,789


amounts include repurchases Omnibus Stock Incentive Plan 1997 Omnibus Stock Incentive Plan. participants surrender shares tax withholding restricted stock. options shares common stock. Shares surrendered repurchased Plans not repurchase programs.


August 14 2023 Board approved $15. billion repurchase. August 18 2022. expiration date.


taxes repurchases.


fourth quarter 2023 issued 521 deferred stock units Home Depot. Nonemployee Directors’ Deferred Stock Compensation Plan exemption Section 4 Securities Act Rule 506 Regulation D. credited directors board retainers cash. convert common stock termination.


fourth quarter 2023 credited 882 deferred stock units Restoration Plans exemption Securities. units convert common stock termination service.


Discussion Financial Operations


discussion financial condition results consolidated financial statements notes. focuses 2023 2022. results operations financial condition 2022 2021 omitted Part II Item 7. Discussion Analysis Financial Condition Results Operations Form 10-K 2022.


Summary Results Liquidity Accounting


sales $152. 7 billion 2023. earnings $15. 1 billion. 11 share. opened eight U. five Mexico 2,335 January 2024. 320. 7% Canada Mexico. sales foot $604. 55. inventory turnover ratio 4. 3. 2 2022.


generated $21. billion cash issued $2. billion debt 2023. $8. 4 billion. repurchases. invested $3. billion capital $1. billion repaid $1. 3 billion debt. dividend $2. share.


ROIC 36. 7% 2023 44. 6% 2022. lower income long-term debt. Non-GAAP Financial Measures definition ROIC reconciliation NOPAT net earnings.


table presents percentage relationship net sales major consolidated statements earnings dollars millions% Net,669 Gross profit,960.,778.,832. Operating expenses Selling general administrative,598.,284.,406. Depreciation amortization.,455.,386. Total operating expenses,271.,739.,792. Operating income,689.,039. Interest other expense Interest income other. Interest expense.,347.,303 Earnings before income taxes.,477.,737.Provision income taxes.,372.,304. Net earnings,143.,105.,433.


Change Selected financial sales data. 2021 Comparable sales (% change). 2). 1. 4 Comparable customer transactions% change. 9). 4). Comparable average ticket% change). 3). Customer transactions (in millions)#1,621.,666. 7). Average ticket.$83. Sales per retail foot.$627. Diluted earnings per share.


HD Supply.


ticket average price transaction management performance Company primary sales performance.


per retail square foot divided by store square footage. efficiency square footage retail operations productivity owned leased square footage.


assess sales net.


. 2023 decreased $4. 7 billion. 0% $152. 7 billion. negative sales transactions lumber price deflation.


Online sales websites mobile applications. 8% net sales increased 1. 1% 2023 2022.


. sales $276 million 2023.


Comparable Sales. locations websites change net sales. includes all locations 52 weeks remodels excludes closed stores. stores comparable Monday 52nd week. Acquisitions included after 52 weeks. supplemental not substitute net sales GAAP.


sales decreased. 2% 2023 2. 9% customer transactions 0. 3% average ticket 2022. macroeconomic factors consumption services higher interest rate home improvement demand. ticket. commodity price deflation ticket 145 points lumber. offset inflation demand new products.


2023 four 14 Materials Outdoor Garden Hardware positive sales. departments negative Lumber department double decline lumber price deflation higher unit sales.


profit decreased $1. billion. 4% $51. billion 2023. 33. 4%. 5% 2022. price stabilization inventory supply chain costs.


shrink above averages-over-year pressure profit margin decreased 2023. gross profit margin 2023 2022.


expenses SG&A amortization.


. SG&A increased $314 million. 2% $26. 6 billion 2023. sales. 4% 16. 7% 2022 deleverage negative wage investments offset lower incentive compensation.


Depreciation Amortization. increased $218 million. 9% $2. 7 billion 2023. sales. 8%. 6% 2022 expense negative sales.


Interest increased $203 million. 0% $1. 8 billion 2023. sales. 2%. 0% 2022 increased interest debt higher debt balances deleverage income.


tax. 0% 2023. 9% 2022.


earnings share $15. 11 2023 $16. 69 2022. net earnings offset diluted shares repurchases.


clarity operating performance supplement reporting non financial measures. GAAP measures. Non-GAAP measures differ companies.


believe ROIC investors measures capital. define ROIC non-GAAP measure twelve-month divided average debt equity. debt equity long-term debt.


table presents ROIC reconciliation NOPAT net earnings GAAP millions Net earnings,143,105,433 Interest,303 Provision income taxes,304 Operating income Income tax adjustment,205 NOPAT,484,294 Average debt equity,955,055 ROIC.


tax adjustment tax rate twelve months.


January 28, 2024 $3. 8 billion cash equivalents $1. 0 billion foreign subsidiaries. current cash position commercial paper program long-term debt markets operating debt payments obligations dividend share repurchases. obtain alternative financing.


cash requirements include obligations. long-term debt lease purchase. disciplined capital allocation. prioritizes investing dividends returning excess cash share repurchases. 2023 invested $3. 2 billion. invested $1. 5 billion three acquisitions strategic initiatives better capabilities.


fiscal 2024 two percent net sales invest $3. billion $3. 5 billion capital new stores customer experience technology capabilities. adjust capital expenditures operations strategic positioning economic environment.


2023 paid dividends $8. 4 billion. 2024. 7% quarterly dividend $2. 09 $2. 25 share. Board Directors earnings capital financial condition.


August 2023 Board approved $15. billion repurchase. 2022. expiration date. January 28, 2024 $12. 3 billion. 2023 cash payments $8. billion common stock.


commercial paper program $5. billion. back-up credit facilities $5. billion five-year $3. 5 billion July 2027 364-day $1. 5 billion July 2024. 364-day $1. billion maturity 2024. short borrowings maximum $1. 5 billion. January 28, 2024 no outstanding borrowings covenants liquidity capital resources.


notes. 2023 issued $2. billion. proceeds repayment. 75% 2024 repurchases stock. April 2023 repaid $1. billion. January 2024 $42. 2 billion $1. billion payable 12 months. Future interest payments $23. 7 billion $1. billion 12 months.


indentures senior notes limit indebtedness financial ratios net worth liquidity. covenants impact liquidity capital resources. Note 5 debt arrangements.


leases real estate stores. January 28, 2024 lease obligations $14. 6 billion $1. 7 billion payable 12 months. $450 million leases. Note 3.


Purchase obligations include contracts media software service. issue inventory orders cancellable. January 28, 2024 obligations $2. 5 billion $1. 0 billion payable 12 months.


January 28, 2024 liabilities tax benefits $689 million $25 million paid 12 months. timing payment unknown. Note 6 statements.


no material.


Cash operations liquidity. from customers offset payments products services associate compensation operations occupancy costs income taxes. Cash working capital. variables seasonality inventory expansion timing vendor terms foreign exchange rates.


Net cash increased $6. billion 2023 driven working capital net earnings. Changes lower inventory purchases timing vendor payments. Inventory normalized 2023 adjusted purchasing inventory.


cash increased $1. 6 billion 2023 acquired businesses increased capital expenditures store growth. Note 13.


cash 2023 $8. dividends. repurchases $1. billion repayments offset $2. billion proceeds.


2022 $7. billion dividends $6. share repurchases $2. billion repayments $1. short $6. billion.


consolidated financial statements GAAP estimates assumptions assets liabilities contingent revenues expenses. results differ.


accounting policies Note 1 consolidated financial statements. discussion critical estimates financial condition results judgment estimates.


value majority inventory retail remainder cost method first-in first-out. retail stated cost cost-to-retail ratio value.


retail value inventory adjusted market conditions. approximates lower cost market. valuation retail inventory based markups markdowns inventory losses. uncertainty in inventory cost gross profit. markups markdowns demand customer preferences age merchandise weather conditions.


calculate shrink inventory losses estimated losses. estimate shrink store-specific based recent shrink results. 10% increase shrink rate cost sales $104 million 2023. difference estimated losses not material annual financial results.


believe change estimates assumptions inventory retail inventory method. provides valuation approximates cost inventory lower cost market.


accounting policies pronouncements financial cash flows Note 1 consolidated financial statements.


interest rate risk long-term debt. swap agreements fixed-rate debt trading speculative. January 28, 2024 floating-rate debt $5. 4 billion 13% senior notes portfolio. agreements liability $858 million. offset hedged long-term debt. percentage point increase annual interest expense $54 million.


second quarter 2023 amended interest swap agreements LIBOR SOFR adopted ASU. 2020-04 Reform. hedge accounting financial statements.


exposed risks currency exchange rate fluctuations operations. dollars purchase goods. use derivative instruments hedge risk trading speculative. hedging arrangements fiscal 2023 not.


experience inflation deflation purchase sale commodity products. price volatility financial condition results operations. monitor adjust selling prices recover costs competitive environment. use derivative instruments risks.


Independent Accounting Firm Balance Sheets Earnings Income Stockholders Equity Cash Flows


Depot. Consolidated Statements


audited consolidated balance sheets Home Depot Inc. subsidiaries Company January 28, 2024 29, 2023 statements earnings income stockholders’ equity cash flows notes. statements present financial position Company January 28, 2024 2023 results operations cash flows. S. accounting principles.


audited Public Company Accounting Oversight Board control financial reporting January 28, 2024 Internal Control Integrated Framework (2013) report March 13, 2024 unqualified opinion.


consolidated financial statements responsibility management. opinion audits. public accounting firm registered PCAOB independent. federal securities laws Securities Exchange Commission PCAOB.


conducted audits standards PCAOB. standards require plan audit assurance consolidated financial statements free misstatement fraud. audits included risks misstatement. procedures included examining evidence amounts disclosures. accounting principles estimates management overall presentation. audits provide reasonable basis for opinion.


critical audit matter is from current period audit of consolidated financial statements communicated to audit committee relates to accounts disclosures material challenging complex judgments. communication alter our opinion on financial statements not providing separate opinion.


Note 1 financial statements Company’s U. S. merchandise inventories lower cost market retail inventory method based markups markdowns inventory losses. Shrink difference recorded physical. calculates shrink losses estimated losses. estimate shrink store-specific recent shrink results.


identified estimation store shrink inventory fiscal year-end critical audit matter. estimation interim inventory loss. stores.


primary procedures audit. evaluated design internal controls estimate store shrink. evaluated interim inventory counts estimate losses. retail stores fiscal year method assumptions current trend analysis sensitivity analysis shrink reserve estimate.


served auditor.


millions 28, 2024 29, 2023 Cash,760,757 Receivables Merchandise inventories,886 assets,775,471 property equipment,154 lease Goodwill Other assets,262 Total Liabilities Equity Accounts payable,443 salaries expenses Sales taxes Deferred revenue Income taxes debt lease liabilities expenses,858,110-term debt,743,962 lease liabilities Deferred income taxes liabilities,486 Commitments contingencies Common stock.authorized 10,000 shares issued 1,796 1,794 2023 outstanding 992 1,016 Paid capital,147,592 earnings,656 loss Treasury stock 804 January 2024 2023,372,298 equity liabilities equity


consolidated.


millions share data Net sales,669,157 Cost sales,709,325 Gross profit,960,778,832 Operating expenses Selling administrative,598,284,406 Depreciation amortization,455,386 Total expenses,271,739,792 income,689,039 Interest expense expense,347,303 Earnings taxes,477,737,372,304 Net earnings,143,105,433 average shares earnings share. average shares earnings share.


millions Net earnings,143,105,433 income net tax Foreign currency adjustments Cash flow hedges income net tax income,384,091,400


millions Common Stock Shares plans Paid-in Capital,592,132 Shares Stock compensation,147,592,132 Retained Earnings,134 Net earnings,143,105,433 Cash dividends(8,383)(7,789) end year,656 Comprehensive Loss(718) Foreign currency adjustments tax Cash flow hedges tax Treasury Stock(87,298)(80,794) Repurchases common stock(8,074)(6,504) end year(95,372)(87,298)(80,794 stockholders’ equity (deficit#1,044(1,696)


millions Cash Flows Operating Activities Net earnings,143,105,433 earnings cash Depreciation amortization,247,975 Stock compensation receivables inventories current assets accounts payable accrued expenses,577,401 deferred revenue income taxes deferred activities Net cash,172,571 Cash Investing Activities Capital expenditures,226) Payments businesses acquired investing activities Net cash Cash Flows Financing Activities short-term debt long-term debt,979 Repayments long debt Repurchases common stockProceeds sales common stock dividends(8,383)(7,789)(6,985) financing activities Net cash(15,443),993),120) cash equivalents(5,518) exchange rate changes(68)(34),757 end,760,757 Cash income taxes,023,435 interest Non capital expenditures


Home Depot Inc. subsidiaries home improvement retailer sells building home improvement lawn garden décor facilities maintenance operations stores online. services installation tool equipment rental. operate U. S. Canada Mexico.


consolidated statements accounts subsidiaries. balances eliminated. fiscal year 52 53-week January 31st.


made estimates assumptions reporting assets liabilities disclosure contingent revenues expenses preparing financial statements GAAP. results differ.


equivalents liquid investments maturities three months.


table receivables millions 28, 29, 2023 Card Rebate Customer Other net,328,317


Card receivables transactions. Rebate receivables vendors-op advertising rebates. Customer receivables credit customers. valuation allowance not material financial statements 2023 2022.


Inventory cost includes freight import operating depreciation distribution net vendor allowances. majority merchandise inventories lower cost market determined retail inventory method based markups markdowns inventory losses. inventory retail value adjusted market conditions approximates lower cost market. Certain subsidiaries Canada Mexico distribution centers record inventories lower cost net value first-in first-out. represent 38% total. evaluate inventory quarter lower adjustments not material financial statements 2023 2022.


Physical inventory store. Shrink swell difference between recorded inventory physical inventory count. calculate shrink inventory losses estimated inventory losses. estimate for shrink store-specific based on recent shrink results. difference estimated shrink losses not material to annual financial results.


Buildings improvements furniture fixtures equipment recorded depreciated estimated lives. improvements leases amortized term useful life.


table property equipment Buildings improvements 45 Furniture fixtures equipment 20 45


capitalize costs interest construction acquisition development software. Costs amortized estimated life three to seven years. costs expensed incurred.


evaluate long-lived assets quarter for potential impairment. Indicators include losses history relocate close before life changes carrying. evaluation lowest cash individual store level. evaluated undiscounted future cash flows with carrying value. greater fair value impairment loss. less than impairment loss recognized difference. Impairment losses property equipment recorded SG&A. Impairment charges not material to financial statements in 2023 2022 2021.


enter contractual arrangements non-owned assets evaluated as finance operating leases accounted. contract lease when contains identified asset obtain economic benefits asset direct asset contract. assess arrangement lease at inception contract.


leases include retail locations warehouse office space equipment vehicles. majority one to 20 years. leases provide extend five-year terms some include early termination options. lease term right liability includes impacts options extend terminate. economic factors market conditions real estate strategies nature length terms agreement uncertainty condition leased equipment. renewal options certain lease term.


discount rate value lease payments implicit lease. rarely secured incremental borrowing rate updated quarterly discount present value lease.


Real estate taxes insurance maintenance operating expenses leased asset obligations lease agreements. payments fixed included liabilities variable excluded recognized obligation incurred. lease agreements include rental payments index rate percentage sales. variable payments apply active index lease commencement date. Variable payments not index recognized incurred.


Leases twelve months less short-term. not balance expensed straight-line lease term. separate lease non-lease real estate equipment.


agreements guarantees covenants.


assets liabilities acquired businesses recorded fair values acquisition. excess purchase price over recorded goodwill. measurement period one year adjustments offset goodwill. adjustments recorded earnings.


Goodwill excess purchase price over fair value assets. amortize assess recoverability third quarter fiscal year fair value unit supports carrying value. assess qualitative factors fair value less than carrying quantitative impairment assessments periodically.


third quarter 2023 recoverability goodwill U. S. Canada Mexico quantitative approach. fair value discounted cash flow market-based approaches. fair value exceeded carrying value. no impairment charges 2023 2022 2021. Additional information Note 4.


Intangible assets goodwill in consolidated balance sheets. amortize cost-lived assets over estimated lives 20 years economic benefit. evaluate assets for impairment recoverable. tested third quarter fiscal year for impairment indicators.


third quarter 2023 assessment recoverability indefinite-lived intangible assets no losses. losses 2023 2022 2021. Additional information Note 4.


supplier finance program payment processing agreements with financial institutions. financial institutions paying agents accounts suppliers. suppliers receive payment obligations discounted price. not party to agreements rights obligations not impacted. reimburse suppliers costs. pledged assets provided guarantees. no economic interest in suppliers’ decisions. responsibility limited to payment financial institution terms negotiated supplier regardless early payment.


payment terms consistent. current terms 30 to 60 days commercially reasonable. outstanding obligations finance $514 million January 28, 2024 $480 million January 29, 2023 recorded balance sheets. payments.


record premiums discounts long-term debt value senior notes. debt issuance costs. Premium discount debt costs amortized over term notes interest rate method.


use derivative instruments interest rate long-term debt foreign currency fluctuations. enter risk management trading speculative. recognized fair values assets liabilities balance sheet classified current non-current maturity. fair value consolidated balance sheets.


values instruments cash flow investment hedges recognized income until recognized earnings sale liquidation. Changes value hedges offsetting changes hedged item recognized earnings. record gains losses same hedged item.


flows settlement instruments statements same hedged item.


self-insured losses liability workers’ compensation medical automobile claims. expected ultimate cost liability. estimated historical data actuarial estimates. maintain cybersecurity privacy insurance losses data property loss. self-insurance liabilities $1. 4 billion January 28, 2024 $1. 3 billion January 29, 2023.


Treasury stock stockholders’ equity cost. weighted average purchase cost reissued. Excise taxes repurchases direct costs recorded cost.


recognize revenue returns sales tax customer service. liability returns estimated historical future returns. recognize return asset cost recover goods returned carrying amount less recovery cost. assess refund liabilities return assets.


Services revenue installation home maintenance professional service programs. customer selects purchases material provide installation. programs offered stores online in-home sales. subcontractor material labor included in revenue. recognize revenue when service complete revenue service period one week.


products services payment due sale. deferred revenue until. obligations contracts three months. January 28, 2024 January 29, 2023 deferred revenue $1. 7 billion $2. 0 billion.


record deferred revenue redemption six months issuance. January 28, 2024 2023 obligations unredeemed gift cards $1. 1 billion. breakage income recognized sales immaterial 2023 2022 2021.


agreements with third-party providers extend credit manage PLCC program own receivables. evaluated consolidated. agreement with primary PLCC expires 2028 option to purchase existing receivables. Deferred interest interchange fees profit sharing included in net sales.


Cost sales includes merchandise sold services performed transportation shipping handling costs operating cost depreciation distribution network. Vendor allowances not costs included.


Vendor allowances volume rebates purchase levels co-op advertising products guaranteed minimum additional attaining purchase levels. accrued earned incentive period year estimates. Volume rebates co-op advertising reduce carrying cost inventory recognized sales inventory sold.


Selling administrative expenses compensation associates occupancy costs insurance advertising credit fees costs.


costs digital television radio print expensed advertisement. co-op advertising allowances expense. Net expense SG&A $1. billion. billion 2023 2022 2021.


authorized issue stock options appreciation rights restricted stock units performance shares deferred shares associates directors incentive plans. measure recognize compensation expense awards estimated values. expected recognized compensation expense restrictions. include estimated forfeitures. Additional information Note 9.


Income taxes asset liability method. federal state foreign taxes payable deferred differences. Deferred tax assets liabilities recognized future tax consequences differences financial assets liabilities tax bases. measured enacted income tax rates taxable income. change tax rates recognized as income expense enactment date. evaluate likelihood realizing benefit deferred tax record valuation allowance tax benefit.


recognize effect income tax positions likely. Recognized positions measured largest amount 50%. Changes recognition measurement reflected.


recognize interest penalties income tax expense SG&A consolidated statements. expenses long-term liabilities balance sheets.


file consolidated. tax return eligible subsidiaries. Non-U. not eligible. Separate provisions taxes determined. unremitted earnings non. subsidiaries assertion reinvestment repatriation tax. provision deferred income taxes. permanent reinvestment assertion no provision recognized. See Note 6.


subject global low-taxed incremental foreign income. accounting election tax.


income earnings adjusted gains losses foreign currency translation adjustments. cash flow hedges immaterial January 28, 2024 2023. Reclassifications earnings immaterial 2023 2022 2021.


Assets liabilities foreign translated. dollars last day. Revenues expenses average rates equity transactions rate. adjustments January 28, 2024 29, 2023 $365 million $597 million.


ASU. 2022-04. 2022 FASB issued. 2022-04 Finance Programs Disclosure Obligations transparency supplier finance programs. requires disclose terms payment terms amount outstanding obligations balance annual rollforward paid. affect financial presentation obligations finance programs. effective fiscal years December 15, 2022 rollforward December 15, 2023. January 30, 2023 adopted ASU. 2022-04 no impact financial condition cash flows.


. 2020-04. 2020 FASB issued. Rate Reform Financial Reporting expedients exceptions GAAP contracts hedging relationships transactions criteria. expedients exceptions apply contracts LIBOR. effective March 12, 2020 contract modifications hedging relationships interim 12 2020. amended ASU. 2022-06 Reform Deferral Sunset Date Topic 848 effective December 2022 extended relief December 31, 2024.


second quarter 2023 amended fixed-variable interest rate swap agreements value variable LIBOR SOFR. elected optional expedients Topic 848 fair value hedge accounting shortcut method. financial condition results cash flows.


. 2023-07. 2023 FASB issued. 2023-07 Reporting Improvements Segment Disclosures segment disclosure requirements expenses. public entities single segment. effective fiscal years December 2023 December 15 2024 early permitted. retrospective evaluating impact consolidated financial statement disclosures.


ASU. 2023-09. 2023 FASB issued.-09 Improvements Disclosures tax rate reconciliation taxes jurisdiction. effective December 15 2024. retrospectively. Early adoption permitted. evaluating impact consolidated financial statement disclosures.


accounting pronouncements not applicable impact financial condition results cash flows.


conduct retail operations U. S. Canada Mexico three segments. financial information reviewed President Chief Executive Officer performance resources. aggregate three segments one similar operations economic characteristics.


table presents property equipment classified geography millions 28, 2024 29, 2023 30 2022 U.,347,696 outside.,154,199


sales 10% revenue last three years.


table presents net sales classified geography millions U. S.#140,083#138,920 outside.,586,563,237,669,157


table presents net sales products services millions sales products,835#151,804,745 services,412,669,157


table product lines merchandising departments Building Materials Electrical Lumber Millwork Plumbing Décor Flooring Kitchen Paint Tools


table sales product line millions Building Materials,039,990 Décor,295,437 Hardlines,335,548 Net sales,669,157


table presents net sales by merchandising department related services): dollars in millions Sales Appliances,863.,461.,232 Building Materials.,298. Décor/Storage.,357. Electrical/Lighting.,746. Flooring####8,754.,222.,225 Hardware. Indoor Garden.,990.,546. Kitchen and Bath,593.,102.,432 Lumber####11,731.,460.,344. Millwork,301.,423. Outdoor Garden,278.,317.,073.,180.,453.####8.,606.,938.,167####8.,376####7.,994####7.#152,669####100.#157,403####100.,157.


table property equipment millions 28, 2024 2023 Land,027 Buildings,030,430 Furniture improvements Construction Finance leases,257,275 depreciation amortization,103,644 property equipment,154


table depreciation finance lease amortization expense cost sales millions Depreciation lease expense,756


table consolidated balance sheet classification operating finance leases millions 28, 2024 29, 2023 Assets Operating lease right-of-use Finance property equipment Total lease,724 Liabilities Finance long debt Long-term,082,226-term debt Total lease liabilities,400,456


lease amortization. billion January 28, 2023.


table lease cost excluding short sublease income Statement Earnings lease cost general administrative Finance Amortization amortization Interest lease liabilities expense Variable lease cost administrative


sourcing distribution network sales finance lease liabilities.


table lease terms discount rates 28, 2024 29, 2023 Lease Term Operating Finance leases Discount Rate. Finance.


table payments leases January 28, 2024 millions 2024,325 2025,342 2026 2027 2028,251 lease payments,071,045 interest lease liabilities,268


table presents cash flow leases millions Cash paid lease liabilities Operating cash flows leases,328,157 leases leases non-cash information Lease assets operating lease liabilities finance lease liabilities####336


table changes goodwill millions balance year#7,444#7,449 Acquisitions Other balance end year#8,455#7,444


2023 determination goodwill acquisitions. Note 13.


Reflects currency.


table presents intangible assets balance sheets 28, 2024 29, 2023 millions Definite-Lived Intangible Assets Customer relationships#3,425,755#2,539 Trade names Indefinite-Lived Intangible Assets Trade names Total Intangible Assets#4,313(707,606,846


allocation value assets acquisitions 2023. Note 13.


intangible asset 2023 2021.


table amortization expense-lived assets January 2024 millions 2024 2025 2026 2027 2028,957


commercial paper program $5. billion. back-up facilities $5. billion five-year $3. 5 billion July 2027 364-day $1. 5 billion July 2024. 364-day $1. billion 2024. short borrowings 2022. January 28, 2024 no outstanding borrowings.


table borrowings commercial paper program 2023 2022 millions Maximum,745 daily short-term borrowings


table presents long-term debt Amount millions Payable Amount 28, 29, 2023. 70% notes April 2023. 75% February 2024. 70% April 2025. 125% April 2025. 35% September 2025 4. September 2025####749######748 3. April 2026. 125% September 2026. 95% September 2026. 875% April 2027. 50% April. 80%. 90% March 2028. 50% September 2028####994######993. 90% December 2028. 90% April 2029.95% June 2029. 70% April 2030,500,347. 375% March 2031,167######1,170. 875% September 2031. 25% April 2032. 50% September 2032. 875% December 2036. 30% April 2040. 40% September 2040. 95% April 2041. 20% April 2043####927######939. 875% February 2044. 40% March 2045. 25% April 2046,600. 90% June 2047,144. 50% December 2048. 125% December 2049,178. 35% April 2050,500.March 2051-annually. 75% September 2051. 625% April 2052-annually. 95% September 2052. 50% September 2056,150,843 Finance lease obligations installments April 30 2076,268,285 long debt,193 current installments installments,743,962


discounts premiums debt hedges.


2023. issued three tranches senior. first $500 million. 125% April 2025 discount. 3 million. April October. second tranche $750 million. 95% September 30 2026 $1. 6 million. third tranche $750 million. 90% April 15 2029 $3. 4 million. April October 15. costs $7 million.


. April 2023 repaid. maturity


Redemption. senior notes redeemed redemption price plus accrued interest. 5. 875% 2036 5. 125% 2025 redemption price equal 100% principal or present values remaining payments principal interest due after redemption date. other notes Par Call Date redemption price equal 100% principal or present values remaining payments. after Par Call Date redemption price equal 100% principal. Change Control Triggering Event holders require redeem 101% principal amount plus accrued interest.


indentures limit indebtedness financial ratios net worth liquidity. covenants none impact liquidity capital resources.


Debt. debt maturities leases January 2024 millions 2024,100 2025,750 2026 2027 2028,150


use derivative instruments foreign currency rates interest rates debt. objective decrease volatility cash flows minimize risk value senior notes.


Value Hedges. interest rate swap agreements $5. 4 billion January 28, 2024 2023. value hedges interest senior notes. $858 million $778 million recognized long-term liabilities balance.


interest rate swap value hedges meet GAAP. offset hedged long-term debt.


quarter 2023 amended swap agreements LIBOR SOFR adopted expedients Topic 848. hedge accounting financial statements. Note 1.


Cash Flow Hedges. January 28, 2024 29, 2023 foreign currency contracts cash flow hedges cash. notional amounts fair values material. gains losses 2023 2022 2021.


settled interest rate swap agreements variability future interest payments debt. Unamortized losses cash flow hedges amortized interest expense. losses immaterial January 28, 2024 29, 2023 2023 2022 2021.


immaterial loss January 2024 earnings 12 months.


. master netting arrangements credit risk net settlement counterparty. collateral security arrangements value derivative instruments thresholds. cash collateral $714 million $634 million January 28, 2024 29, 2023 recorded. cash collateral January 28, 2024 29, 2023.


table presents earnings before taxes millions United States,681,990,320 Foreign Total,477,737


table income taxes millions Federal,764,066 State Foreign Total current,011,234 Deferred Federal State Foreign deferred Provision income taxes#4,781,372,304


table presents combined federal state foreign tax rates tax rates.#24. 4


table income taxes federal 21% tax expense millions taxes federal rate,184 State taxes net federal tax benefit Total#4,781,372,304


August 16 2022 Inflation Reduction Act enacted law. 15% tax income. no impact tax rate 15%.


end 2023 Economic published rules global minimum tax framework base erosion profit shifting pillar two project governments enacted. states BEPS Pillar Two global minimum tax 15% years 2024. OECD guidance includes transition safe harbor rules BEPS Pillar Two. monitoring evaluating impacts tax rate impact.


table tax differences deferred assets liabilities 28, 2024 2023 Deferred compensation self-insurance liabilities taxes Merchandise inventories Non reserves losses Lease liabilities Deferred revenue deferred tax assets,658 Valuation allowance Property equipment Goodwill intangibles Lease-use Tax unremitted earnings deferred tax liabilities


table noncurrent deferred tax assets liabilities jurisdiction balance sheets 28, 2024 29, 2023 Deferred tax assets Deferred liabilities liabilities


January 28, 2024 recorded deferred tax assets $99 million losses $69 million tax credits state jurisdictions. losses credits expire 2024 2025. concluded likely tax benefits losses. tax credits expiration valuation allowance recorded credits. change valuation allowance fiscal 2023.


current year foreign cash earnings not reinvested offshore. tax consolidated statements. intent reinvest $4. 8 billion non-cash earnings non-U. S. subsidiaries indefinitely. no provision state taxes statements. impracticable determine unrecognized deferred tax liabilities reinvested earnings hypothetical calculation.


income tax returns examined by. federal state foreign tax authorities. federal returns 2010 2021 2015, IRS. 2010 IRS adjustment transfer pricing. China resolved 2023 no impact financial condition cash flows. ongoing U. state local foreign audits 2013 through 2021. financial condition cash flows.


next twelve months resolution federal state tax examinations expiration statutes limitations reduce tax benefits. anticipate financial condition results.


table reconciles unrecognized tax benefits millions tax benefits balance fiscal year#643#570 Additions tax positions current Additions prior years Reductions Reductions settlements Reductions statute limitations balance end fiscal year#643#570


tax benefits $568 $537 $479 million January 28, 2024 2023 2022.


adjustments penalties immaterial 2022 2021. accrued interest penalties immaterial January 2024 2023.


table common stock cash dividends share millions Common stock year,789 employee stock plans end year Treasury stock year(778)(757) Repurchases common stock(21)(45) end year(804)(778)(757) Cash dividends per share.


August 2023 Board approved $15. billion repurchase. 2022. expiration date. January 28, 2024 $12. 3 billion. available


table repurchases common stock open market purchases millions shares repurchased cost#8,074#6,504,001


cost shares repurchased differ common stock due unsettled repurchases excise taxes.


fair value asset price sold in transaction between unrelated parties. fair value defined amount transfer to new obligor with creditor. Assets liabilities fair value measured three-tier fair value hierarchy prioritizes inputs. levels 1: observable inputs quoted prices 2: inputs 3: unobservable inputs little no market data management judgment develop models.


Liabilities Measured Recurring


table presents assets liabilities fair value 28, 2024 29, 2023 millions Value Derivative agreements assets liabilities


values derivative income Level 2 inputs interest curves discount rates. Note 5.


Liabilities Measured Nonrecurring


Long-lived intangible subject nonrecurring value impairment. material assets liabilities measured 2023 2022 2021.


equivalents receivables accounts value short-term.


table presents senior notes 28, 2024 29, 2023 millions Value Senior notes,495,843,537


Home Depot. Omnibus Stock Incentive Plan 2022. 1997 Omnibus Plan incentive stock options appreciation rights restricted stock units performance shares deferred shares awards associates non directors. maximum common stock 80 million shares 10 million awards May 19, 2022 returned terminated cancelled forfeited. 11. January 28, 2024 77 million shares future grants Omnibus Plan. No additional equity awards after May 26, 2005.


table presents stock-based compensation expense forfeitures ESPPs income tax benefit millions Pre-tax expense Income tax benefit After-tax


January 28, 2024 $454 million unrecognized two years.


award types Plans


Stock Options. incentive nonqualified exercise price above fair market. nonqualified vest 25% per year second expire tenth anniversary. majority options non-forfeitable 60 five years service. No incentive Omnibus Plan.


estimate fair value stock option awards grant Black-Scholes option-pricing model. affected stock price assumptions variables.


table presents per share value stock options granted assumptions determining date grant Black-Scholes option-pricing model share average fair value. Risk-free interest rate. volatility. dividend yield. lives options


table stock option activity price 2023 Shares Exercise Price,626. 66 Granted. 85 Exercised. 96 Forfeited####275. 93. 97


table presents value stock options millions value stock options#152#61#237


table stock options January 28, 2024 shares millions Value Average Exercise Price. 6 years. Exercisable,102. 2 years.


common stock option authorized unissued treasury.


Restricted Stock Performance Share Awards. Restrictions lapse five years. recipients voting rights receive dividends unvested paid cash. Dividends immaterial 2023 2022 2021. awards non-forfeitable age 60 five years service.


granted performance share awards Plans. issuance common stock three-year performance cycle ROIC profit. non-forfeitable age 60 five years service performance targets achieved. Recipients no voting rights shares issued performance period. Dividend equivalents accrue paid shares earned. fair value stock shares closing stock price expensed restrictions.


Restricted Stock Units. entitles associate share common stock five years after grant. awards non-forfeitable 60 five years service. Recipients no voting rights until vesting. receive dividend equivalents paid additional shares vesting. fair value closing stock price expensed.


table restricted stock 2023 Average Grant Date Nonvested,359. 66 Granted. 63 Vested. 72 Forfeited. 20 Nonvested,386.


table presents value restricted stock shares units millions value vested#412


Deferred Shares. grant non-employee directors. entitles one share common stock Board service. Recipients no voting rights receive dividend equivalents paid additional shares. fair value closing stock price expensed.


table deferred shares non-employee directors Deferred shares directors


maintain two ESPPs. non. tax-qualified Section 423 Internal Revenue Code. non. not Section 423. January 28, 2024 15 million shares. 18 million non. purchase 85% fair market value last 30. 2023 1 million shares purchased average $277. January 2024 associates contributed $22 million 85% fair market value June 30 2024.


maintain retirement plans associates. associates eligible participate. make cash contributions percentages approved Board Directors.


maintain Restoration Plans deferred compensation maximum limits Internal Revenue Code. fund Plans grantor trusts purchase common stock open market.


table presents contributions Benefit Plans Restoration Plans millions Contributions#293#280#278


January 28, 2024 Benefit Restoration held. million stock.


table diluted shares anti-dilutive securities excluded millions Basic shares#1,022#1,054 dilutive securities Diluted shares#1,025#1,058 Anti-dilutive securities excluded diluted


dilutive awards.


January 28, 2024 letters credit $598 million insurance.


involved litigation normal business. not adverse financial condition results operations cash flows.


2023 completed three acquisitions $1. 5 billion. recognized intangible assets $469 million amortization 17 years customer relationships goodwill $998 million. operational synergies growth strategy workforce. goodwill deductible. tax not material.


completed preliminary valuation analyses values assets acquired liabilities assumed goodwill acquisition dates. based estimates assumptions amounts preliminary subject adjustment additional information. adjustments assets liabilities intangible assets estimated useful lives. final determination values income tax impacts completed one year from acquisition dates. adjustments provisional amounts recorded reporting period.


sales earnings fiscal 2023 acquisitions dates immaterial. forma results operations different not presented.


Disagreements Financial Disclosure


maintain disclosure controls procedures Rule 13a-15(e) Exchange Act information recorded processed summarized reported rules forms accumulated communicated management Chief Financial Officer decisions.


Management Chief Executive Financial Officer evaluated disclosure controls procedures end period report. Chief Executive Financial concluded disclosure controls procedures effective.


management responsible internal control financial reporting Rule 13a-15(f) Exchange Act. evaluation internal control January 28, 2024 Internal Control – Integrated Framework (2013) Committee Sponsoring Organizations Treadway Commission. concluded control effective 2024 assurance reliability reporting preparation financial statements GAAP.


control financial reporting January 28, 2024 audited KPMG LLP report.


business transformation initiative upgrading migrating accounting finance systems. plan migrate processes next years modified internal control processes.


no other changes in financial reporting fiscal quarter ended January 28, 2024 affected.


Home Depot. Financial


audited Home Depot Inc. subsidiaries Company internal control financial reporting January 28, 2024 criteria Internal Control – Integrated Framework (2013) Committee. Company maintained effective internal control 2024.


audited Public Company Accounting Oversight Board consolidated balance sheets January 28, 2024 2023 earnings income stockholders’ equity cash flows 2024 notes report March 13, 2024 unqualified opinion.


management responsible internal control financial reporting assessment Report. responsibility opinion control based audit. public accounting firm registered PCAOB independent U. S. federal securities laws rules Securities and Exchange Commission PCAOB.


conducted audit standards PCAOB. standards require plan assurance effective internal control financial reporting. audit included understanding risk material weakness testing design operating effectiveness. included other procedures necessary. audit provides basis for opinion.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors assurance prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


fiscal quarter January 28, 2024 director adopted terminated 10b5-1-Rule 10b5-1 Regulation.


item executive officers incorporated sections Directors Governance Committee Proxy Statement 2024 Annual Meeting Shareholders.


Executive officers appointed serve Board of Directors.


. BASTEK Executive Vice President Merchandising 2023. Senior Vice President Merchandising hardware garden. Merchandising Vice President 2013 2019. 1989 HD Supply acquired 1997. Global Merchant Senior Merchant Divisional Merchandise Manager Vice President building materials.


ANN-MARIE CAMPBELL 58 Senior Executive Vice President November 2023. U. S. Stores International Operations 2016. Division President Southern Division December 2005 Vice President Vendor Services. Home Depot 1985 cashier vice president operations merchandising marketing. director Workday. financial capital software vendor.


MATTHEW. CAREY Executive Vice President April 2022. September 2008 April 2022. Senior Vice President eBay. Wal-Mart Stores. June 1985 December 2005. Senior Vice President Officer. director Chipotle Mexican Grill. operates restaurants.


JOHN 50 Executive Vice President Supply Chain Product Development November 2021. April Senior Vice Operations Supply Chain July Brand Product Development April 2007 June Supply Chain.


EDWARD. DECKER 61 Chair October 2022 President March 2022. 2022. August 2014 Executive Vice President Merchandising Senior Vice President Retail Finance Pricing Analytics Assortment Planning. Home Depot 2000 Vice President November 2002 April 2006 Senior Vice President Asset Development 2006. treasury Kimberly-Clark. Scott Paper. consumer.


. HOURIGAN 67 Executive Vice President Human Resources June 2017. Division President Southern Division. Vice President Resources. Stores Operations 2013 Compensation Benefits 2007 Human Resources July 2002 2007.


. McPHAIL Vice President Chief Financial Officer 2019. Senior Vice President Finance reporting planning treasury payments tax operations. 2017 Senior Vice President. Retail finance business development. Senior Vice President Global&A Strategy Business 2013 2014 Vice President Strategic Business director Strategic Business 2005 2007. vice president Marconi Corporation. Wachovia Securities Arthur Andersen.


49 Vice President. Stores Operations November 2023. Outside Sales 2021 2023 Division President Southern Division June 2017 2021 Senior Vice President Operations November 2014 2017. Home Depot 1994 associate operations.


ROSEBOROUGH Executive Vice President General Counsel Corporate Secretary November 2011. positions MetLife. Senior Chief Counsel Deputy General Counsel. partner Sutherland Asbill Brennan 1996 2006 Deputy Assistant Attorney General 1994 1996. director Hartford Financial Services Group. investment.


SIDDIQUI Executive Vice President Information Officer April 2022. Senior Vice President December 2018 April 2022. Staples. May 2017 November 2018. technology engineering retail energy.


information incorporated sections Compensation Compensation Development Compensation Committee Proxy Statement Compensation Pay Versus not incorporated.


Ownership Stockholder Matters


incorporated Ownership Common Compensation Equity Compensation Plan Proxy Statement.


information incorporated section “Corporate Proxy Statement.


information incorporated Accounting Firm’s Proxy Statement.


documents filed. Financial Statements


financial statements Item 8 Accounting Firm LLP Atlanta GA Auditor Firm ID Balance Sheets January 28, 2024 January 29, 2023 Earnings 2023 2022 2021 Comprehensive Income Stockholders’ Equity Cash Flows Statements.


schedules omitted inapplicable consolidated statements notes.


Exhibits incorporated SEC. Current Quarterly Annual Reports filed SEC File. 1-8207. Registration Statements file numbers. shareholders Home Depot. 2455 Paces Ferry Road Atlanta Georgia. (770). Certificate Incorporation Home Depot. 10-Q fiscal quarter July 31, 2011,.-Laws Home Depot. February 23, 2023 8-K February 28, 2023. May 4 2005, Home Depot. Bank New York Mellon Trust Company. S-3. May 2005,. August 24 2012, Home Depot. Deutsche Bank Trust Company. 333-183621) August. Senior Note December 16 2036 8-K December 19, 2006,. Note September 15 2040 September 10 2010,.95% April 1 2041 March 31, 2011,. 700% April 1 2023 April 5 2013,. 200% April 1 2043. 750% February 15 2024 September 10 2013,. 875% February 15 2044. 40% March 15 2045 June 12 2014,. 250% April 1 2046 June 2 2015,. 35% September 15 2025 September 15 2015,.% April 1 2026 February 12 2016,.


. 14. 250% April 1 2046 filed February 12 2016, Exhibit. 125% September 15 2026. 3. 500% September 15 2056. 900% June 15 2047 2017 Exhibit. 18 2 800% September 14 2027 4. 3. 900% December 6 2028 December 6 2018 Exhibit. 500% December 6 2048. 950% June 15 2029 June 2019. 900% June 15 2047. 950% June 15 2029 January 13, 2020. 125% December 15 2049 January Exhibit. 2 500% April 15 2027 March 30 2020. 700% April 15 2030. 300% April 15 2040 March 2020 Exhibit.3. 350% April 15 2050 March 30 2020. 900% March 15 2028 January 7, 2021. 1 375% March 15 2031 2021. 375% March 15 2051 January 7 2021. 500% September 15 2028 September 21, 2021. 875% September 15 2031. 2 750% September 15 2051. 700% April 15 2025 March 28, 2022. 875% April 15 2027 March 2022. 3 250% April 15 2032 March 2022. 625% April 15 2052 March 28, 2022. 000% September 15, 2025 September 19, 2022. 500% September 15 2032. 950% September 15 2052 2022.April 30 2025 8-K December 4 2023. 950% September 30 2026 December 4 2023. 900% April 15 2029 2023. Securities 10-K fiscal February 2 2020. Home Depot. 1997 Omnibus Stock Incentive Plan August 4 2002. Executive Employment Death Benefit Agreement February 3 2013,. Home Depot Deferred Compensation Plan Officers January 1 2008) 8-K August 20 2007,. January 31, 2010,. year January 31, 2021. Home Depot. Omnibus Stock Incentive Plan May 19, 2022 quarter July 31, 2022.


. Home Depot FutureBuilder Restoration Plan August 2007,. 1 February 2014,. Supply Restoration Plan January 2023. Home Depot. Nonemployee Directors’ Deferred Stock Compensation Plan August 20. Home Depot Amended Management Incentive Plan January 31, 2022 May 24 2022. Home Depot. Employee Stock Purchase Plan July 1 2012 quarter April 29,. Executive Officer Restricted Stock Award Home Depot. Plan October 31, 2004,. Deferred Share Award. November 15 2007,. Executive Officer Equity Award Terms Conditions Agreement. March 6 2013,. Executive Officer Equity Award Agreement Stock Option Depot.2005 Omnibus Stock Incentive Plan 8-K March 8 2016,. Deferred Share Award Director Home Depot. fiscal year January 29, 2017. Executive Officer Equity Award Agreement Stock Home Depot. February 28, 2018. Executive Officer Equity Award Agreement Restricted Stock Home Depot. March 4 2019. Executive Officer Equity Award Agreement Stock Option. March 4 2019. Executive Officer Equity Award Agreement. March 2 2020. Executive Officer Restricted Stock Option Award Agreement Home Depot. fiscal quarter November 1 2020. Executive Officer Equity Award Agreement Home Depot. March 1 2021.


Exhibit. 24 Executive Officer Equity Award Agreement Shares Stock Nonqualified Options Home Depot. Omnibus Stock Incentive Plan Amended Restated May 19, 2022 24 Exhibit. Home Depot. Plan Amended. Shares Options Home Depot. February 28, 2023 Exhibit. Equity Agreement Stock Options Home Depot. Exhibit. Nonemployee Director Deferred Share Award Agreement Home Depot. Stock Incentive Plan Amended Restated May 24 Exhibit. Arrangement Edward P. Decker Home Depot. February 24 2022 quarter May 1 2022 Exhibit. Arrangement Richard. McPhail Home Depot. October 1 2020 quarter November 1 2020 Exhibit.. Arrangement Ann Campbell Home Depot. October 25 2023 10-Q fiscal quarter 2023 Exhibit. Agreement Jeffrey. Kinnaird Home Depot. April 17, 2023 10-Q quarter 30 2023. Arrangement Matthew. Carey Home Depot. April 19, 2022 fiscal quarter May 1 2022. Arrangement Teresa Wynn Roseborough Home Depot. September 28, 2011 Subsidiaries Accounting Firm. Chair President Chief Executive Officer Rule. President Officer.-Oxley Act. Home Depot. Executive Compensation Clawback Policy


Exhibit 101. Instance Document Interactive Data file XBRL tags Inline XBRL document. Taxonomy Extension Schema. Calculation. Definition. Extension Label. Extension Presentation Page Interactive Data File inline XBRL Exhibit 101


Furnished filed Item 601 Regulation


Section 13 Securities Exchange Act 1934 registrant report. HOME DEPOT. EDWARD. DECKER. Chair President Chief Executive 13, 2024


Securities Exchange Act 1934 report signed registrant March 13, 2024. EDWARD P. DECKER President Officer. RICHARD V. MCPHAIL Vice President Officer. SCARDINO Vice President Finance Chief Accounting Officer. GERARD. ARPEY. BOUSBIB JEFFERY H. BOYD. GREGORY. BRENNEMAN. FRANK. ALBERT P. CAREY. LINDA. GOODEN. HEWETT. MANUEL KADRE STEPHANIE. LINNARTZ. PAULA. SANTILLI. CARYN SEIDMAN-BECKER


Johnson & Johnson subsidiaries 131,900 employees research manufacture sale healthcare. holding company all countries. focus human health well-being. incorporated New Jersey 1887.


Executive Committee Johnson & Johnson strategic operations allocation resources. oversees Innovative Medicine MedTech. senior management U. S. international companies responsible for strategic plans operations. subsidiary managed by residents.


Consumer Health August 2023 Company Innovative Medicine MedTech. Additional information segments results Item 7. analysis results operations financial condition Note 17 Segments business geographic areas financial statements Item 8.


Innovative Medicine Immunology. rheumatoid Infectious Diseases. HIV Neuroscience. Oncology. prostate lung bladder Cardiovascular Metabolism. diabetes macular degeneration Pulmonary Hypertension. Medicines distributed retailers wholesalers hospitals professionals.products Innovative Medicine REMICADE immune-mediated inflammatory diseases SIMPONI subcutaneous rheumatoid psoriatic ankylosing spondylitis ulcerative colitis SIMPONI ARIA intravenous juvenile arthritis 2 STELARA plaque psoriasis psoriatic arthritis Crohn's disease ulcerative colitis TREMFYA psoriasis psoriatic arthritis EDURANT PREZISTA (darunavir PREZCOBIX/REZOLSTA antiretroviral immunodeficiency SYMTUZA (darunavir/cobicistat/emtricitabine/tenofovir HIV CONCERTA (methylphenidate HCl attention deficit hyperactivity disorder INVEGA SUSTENNA/XEPLION (paliperidone schizophrenia INVEGA TRINZA/TREVICTA schizophrenia SPRAVATO nasal spray antidepresstreatment-resistant depression suicidal thoughts CARVYKTI chimeric antigen-T-cell therapy relapsed multiple myeloma ZYTIGA


prostate cancer ERLEADA androgen receptor inhibitor prostate IMBRUVICA B-cell malignancies chronic graft DARZALEX multiple myeloma FASPRO hyaluronidase multiple myeloma Amyloidosis XARELTO anticoagulant vein thrombosis stroke systemic embolism nonvalvular atrial fibrillation recurrence DVT cardiovascular events coronary artery disease peripheral disease thromboprophylaxis procedure OPSUMIT (macitentan pulmonary arterial hypertension UPTRAVI oral intravenous selective IP receptor agonist prostacyclin PAH. medicines developed licensed lifecycle.


MedTech Interventional Solutions Orthopaedics Surgery Vision. electrophysiology recovery coronary artery disease Neurovascular care hemorrhagic ischemic stroke. Orthopaedics Hips Knees Trauma Spine. Surgery breast aesthetics Ear Nose Throat. Vision ACUVUE contact lenses lenses cataract. distributed wholesalers hospitals retailers physicians nurses hospitals eye care clinics.


Johnson & Johnson subsidiaries 131,900 employees research manufacture sale healthcare. business countries focus human health well-being.


products sold international include Innovative Medicine MedTech. markets products methods distribution vary country culture. U. subsidiaries abroad.


Investments activities outside U. higher risks. financial instability restrictive policies legal uncertainties.


materials essential Company business available multiple sources. exceptions temporary unavailability financial results.


Company subsidiaries patent protection products processes. own licensed significant patents U. S. other countries products uses formulations manufacturing processes importance Company. face patent challenges generic biosimilar


products expiration patents. legal proceedings Company patent property Note 19 Financial Statements Item 8.


largest product STELARA (ustekinumab. 8% revenues 2023. patents. Janssen Biotech. Johnson & Johnson owns patents STELARA. United States patent 2023. launch biosimilar STELARA January 1, 2025. European patent expires 2024.


product DARZALEX FASPRO. 4% revenues 2023. patents material. Genmab A/S patent families Janssen Biotech. exclusive. expire 2029 protection extends 2031/2032. Janssen Biotech. separate patent portfolio DARZALEX FASPRO.


subsidiaries selling products trademarks obtaining protection. protected by registration U. S. countries. Company considers trademarks material importance.


Worldwide sales seasonality spending heavier fourth quarter. increased spending research development.


product lines Company's subsidiaries compete locally globally. Competition exists without size. Competition research new products processes significant. development products protecting intellectual property important success. competitive environment requires investments research.


Company subject environmental laws United States jurisdictions. believes operations comply. capital expenditures cash flows earnings competitive position.


Company’s businesses subject regulation trend stringent regulation. subject complex U. foreign laws regulations adverse action affect financial condition business operations. medical technology industries federal state agencies product safety efficacy manufacturing advertising labeling safety reporting. regulatory powers U. Food Drug Administration. testing documentation. expense product introduction. trends markets outside.


new medical device regulatory framework privacy data localization cyber security laws increased regulation. States enacted privacy laws federal regulators. FDA FTC HHS health privacy. EU directives laws EHDS Data Act Cyber Resilience Act AI Act changing privacy cybersecurity enforcement risks. China introduced personal information protection data security regulations scrutiny compliance data transfer. other jurisdictions enacting privacy laws accountability data healthcare. laws restrict transfers borders data health care solutions. release Artificial trend comprehensive regulation. Executive Order Act use privacy security transparency accountability fairness compliance.


regulatory agencies Company operates administrative powers product withdrawals recalls seizure civil sanctions. subsidiaries initiate recalls.


U. S. FDA regulatory agencies increasing enforcement. If. laws products ineffective health risk. could ban detain seize adulterated misbranded products order recall repair replacement refund refuse marketing authorization require certificates exports health professionals risks. may assess civil criminal penalties impose operating restrictions enjoin restrain conduct. recommend prosecution. Department Justice. adverse regulatory action restrict marketing selling limit future clearances approvals business practices. Equivalent enforcement mechanisms countries.


costs healthcare study regulation. attention focused on prices profits overutilization quality costs healthcare. Laws regulations compliance fraud abuse. increased focus financial relationships healthcare companies providers. state federal transparency laws require disclosures payments transfers healthcare practitioners non practitioners. require anti-bribery prohibitions payments foreign government official. Pharmacy Benefit Managers (PBMs impact practices healthcare cost access.


business state legislation pricing coverage reimbursement. President Biden Inflation Reduction Act


government prices high-spend drugs biologics Medicare 2026 D 2028 B. August 29, 2023 Centers Medicare Medicaid Services published list STELARA IMBRUVICA. Pharmacyclics LLC AbbVie. medicines disease states prevalent Medicare. uncertainty federal prices IRA specifies ceiling minimum. anticipate products government-established price Medicare.


IRA rebates prices inflation October 1, 2022 Medicare Part D January 1, 2023 Medicare Part B. IRA redesign Medicare Part D benefit costs manufacturers D manufacturer. Failure manufacturers penalties.


July 2023 Janssen Pharmaceuticals. litigation. Department Health Human Services Centers Medicare Medicaid Inflation Medicare Drug Price Negotiation Program. violates First Amendment Fifth Amendment not subject mandatory pricing. impact IRA industry uncertain litigation CMS maximum price drugs.


expect scrutiny drug government price Congress federal state regulations pricing transparency.


additional bills Congress healthcare reform proposals drug pricing Medicare Medicaid. changing legal landscape. healthcare industry federal state law modification industry. IRA federal legislative change affect pricing market.