HOME DEPOT, INC.HD

HOME DEPOT, INC. Segments Disclosure

10-KFiled Mar 18, 20266 min read
SEGMENT REPORTING AND NET SALES
Segment Reporting
The Company defines its segments based on how internally reported financial information is regularly reviewed by the chief operating decision maker (“CODM”), our President and Chief Executive Officer, to analyze financial performance, make decisions, and allocate resources.
Primary Segment. We are engaged in retail operations and sell a wide assortment of home improvement products, building materials, lawn and garden products, décor products, and facilities MRO products both in stores and online. We also provide a number of services, including home improvement installation services, and tool and equipment rental. We currently conduct these operations in the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico, each of which represents an operating segment. For disclosure purposes, we aggregate these three geographic operating segments into one reportable segment (the “Primary segment”) due to the similar nature of their operations and economic characteristics.
Other. As discussed in Note 13, in June 2024, we acquired SRS, a leading residential specialty trade distribution company across several verticals serving the professional roofer, landscaper and pool contractor through branches located throughout the U.S. On September 4, 2025, SRS completed the acquisition of GMS, a leading distributor of specialty building products, including drywall, ceilings, steel framing and other complementary construction products, through branches located across the U.S. and Canada. GMS became an additional vertical within SRS referred to as interior and construction products, and SRS is now organized as four different lines of business: roofing and building products, interior and construction products, landscape, and pool. We have determined that each of these four lines of business represents an operating segment, none of which meets the thresholds prescribed under Accounting Standards Codification Topic 280: “Segment Reporting” to be deemed a reportable segment. Therefore, results from these operating segments are presented in “Other.”
Segment Information. For our Primary segment, our CODM uses operating income to allocate resources in the planning and forecasting process and to assess segment performance by monitoring actual results versus prior-period, forecasted results, and the annual plan. Assets are reviewed by our CODM on a total company consolidated basis and not by segment. The accounting policies of our Primary segment are the same as those described in our summary of significant accounting policies.
The following table presents net sales, significant expenses, and operating income for our Primary segment:
in millions
Fiscal
 2025
Fiscal
 2024
Fiscal
 2023
Net sales
$151,966 $153,108 $152,669 
Cost of sales
99,717 101,194 101,709 
Selling, general and administrative28,885 27,822 26,598 
Depreciation and amortization2,790 2,779 2,673 
Operating income
$20,574 $21,313 $21,689 
The following table presents a reconciliation of certain segment information to our consolidated totals:
Fiscal 2025Fiscal 2024
in millions
Primary
Other (1)
Consolidated
Primary
Other (1)
Consolidated
Net sales
$151,966 $12,717 $164,683 $153,108 $6,406 $159,514 
Operating income
20,574 316 20,890 21,313 213 21,526 
Interest income and other, net
(124)(201)
Interest expense
2,412 2,321 
Earnings before provision for income taxes
$18,602 $19,406 
Depreciation and amortization (2)
$3,344 $715 $4,059 $3,350 $358 $3,708 
—————
(1)Net sales presented in Other relate to the sale of products within our SRS non-reportable operating segments, following our acquisition of SRS in the second quarter of fiscal 2024 and the subsequent acquisition of GMS in the third quarter of fiscal 2025. Operating income presented in Other includes cost of sales and operating expenses totaling $12.4 billion and $6.2 billion for fiscal 2025 and fiscal 2024, respectively, within these SRS non-reportable operating segments.
(2)Includes depreciation and finance lease amortization in cost of sales. Also includes intangible asset amortization expense of $209 million and $207 million for fiscal 2025 and fiscal 2024, respectively, in our Primary segment, and intangible asset amortization expense of $398 million and $218 million for fiscal 2025 and fiscal 2024, respectively, in Other.
Prior to the SRS acquisition in fiscal 2024, our total Company consolidated results represented our Primary segment. Therefore, a reconciliation to our consolidated totals is not applicable for fiscal 2023.
The following table presents net property and equipment, classified by geography:
in millionsFebruary 1,
2026		February 2,
2025		January 28,
2024
Net property and equipment – in the U.S.$25,139 $24,193 $23,347 
Net property and equipment – outside the U.S.2,882 2,509 2,807 
Net property and equipment$28,021 $26,702 $26,154 
Net Sales
The following table presents our Primary segment major product lines and the related merchandising departments (and related services):
Major Product LineMerchandising Departments
Building Materials
Building Materials, Electrical, Lumber, Millwork, and Plumbing
Décor
Appliances, Bath, Flooring, Kitchen & Blinds, Lighting, and Paint
Hardlines
Hardware, Indoor Garden, Outdoor Garden, Power, and Storage & Organization
As noted in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2025, we made changes that realigned certain product categories across our major product lines and merchandising departments within our Primary segment. As a result, prior-year amounts in each of the respective tables below have been reclassified to conform with the current-year presentation. These changes had no impact on consolidated net sales.
The following table presents net sales by major product line (and related services) within our Primary segment, as well as Other net sales:
FiscalFiscalFiscal
in millions202520242023
Building Materials$52,439 $52,862 $52,572 
Décor51,679 52,525 52,750 
Hardlines47,848 47,721 47,347 
Primary segment net sales
151,966 153,108 152,669 
Other net sales (1)
12,717 6,406 — 
Net sales
$164,683 $159,514 $152,669 
—————
(1)Net sales presented in Other relate to the sale of products within our SRS non-reportable operating segments, following our acquisition of SRS in the second quarter of fiscal 2024 and the subsequent acquisition of GMS in the third quarter of fiscal 2025. Roofing and related products accounted for approximately 53% and 68% of Other net sales for fiscal 2025 and fiscal 2024, respectively.
The following table presents net sales by merchandising department (and related services) within our Primary segment, as well as Other net sales:
FiscalFiscalFiscal
202520242023
dollars in millionsNet
Sales		% of
 Net Sales		Net
Sales		% of
Net Sales		Net
Sales		% of
Net Sales
Appliances$13,987 8.5 %$14,068 8.8 %$13,875 9.1 %
Bath
6,495 3.9 6,462 4.1 6,580 4.3 
Building Materials12,375 7.5 12,429 7.8 12,098 7.9 
Electrical
8,010 4.9 7,875 4.9 7,993 5.2 
Flooring
8,232 5.0 8,692 5.4 8,703 5.7 
Hardware
8,983 5.5 8,982 5.6 8,956 5.9 
Indoor Garden
10,176 6.2 10,302 6.5 10,276 6.7 
Kitchen & Blinds
7,982 4.8 7,889 4.9 7,999 5.2 
Lighting
4,006 2.4 4,221 2.6 4,549 3.0 
Lumber11,391 6.9 11,768 7.4 11,734 7.7 
Millwork8,187 5.0 8,328 5.2 8,456 5.5 
Outdoor Garden10,467 6.4 10,329 6.5 10,384 6.8 
Paint10,977 6.7 11,193 7.0 11,044 7.2 
Plumbing12,476 7.6 12,462 7.8 12,291 8.1 
Power
13,168 8.0 13,210 8.3 12,850 8.4 
Storage & Organization
5,054 3.1 4,898 3.1 4,881 3.2 
Primary segment net sales
151,966 92.3 153,108 96.0 152,669 100.0 
Other net sales (1)
12,717 7.7 6,406 4.0 — — 
Net sales
$164,683 100.0 %$159,514 100.0 %$152,669 100.0 %
—————
Note: Certain percentages may not sum to totals due to rounding.
(1)See above for further discussion of net sales presented in Other.
The following table presents net sales, classified by geography:
 FiscalFiscalFiscal
in millions202520242023
Net sales – in the U.S.$152,170 $147,007 $140,083 
Net sales – outside the U.S.12,513 12,507 12,586 
Net sales$164,683 $159,514 $152,669 
The following table presents net sales by products and services:
 FiscalFiscalFiscal
in millions202520242023
Net sales – products $159,029 $153,674 $146,835 
Net sales – services 5,654 5,840 5,834 
Net sales$164,683 $159,514 $152,669 
No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years.

Historical Timeline

Fiscal YearFiled
2026Mar 18, 2026Showing above
2025Mar 21, 2025
2024Mar 13, 2024
2023Mar 15, 2023
2022Mar 23, 2022
2021Mar 24, 2021
2020Mar 25, 2020
2019Mar 28, 2019
2018Mar 22, 2018

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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