Home Depot Inc. (HD)

Home Depot recognizes revenue, net of estimated returns and sales tax, at the time the customer takes possession of merchandise or when a service is performed. The liability for sales returns, including the impact to gross profit, is estimated based on historical return levels.

Net sales include services revenue generated through a variety of installation, home maintenance, and professional service programs. In these programs, the customer selects and purchases material for a project, and Home Depot provides or arranges professional installation. These programs are offered through Home Depot’s stores and in-home sales programs. Under certain programs, when Home Depot provides or arranges the installation of a project and the subcontractor provides material as part of the installation, both the material and labor are included in services revenue. Home Depot recognizes this revenue when the service for the customer is complete.

When Home Depot receives payment from customers before the customer has taken possession of the merchandise or the service has been performed, the amount received is recorded as deferred revenue until the sale or service is complete. Home Depot also records deferred revenue for the sale of gift cards and recognizes this revenue upon the redemption of gift cards in net sales. Gift card breakage income is recognized based upon historical redemption patterns and represents the balance of gift cards for which Home Depot believes the likelihood of redemption by the customer is remote.

Source: 10-K (filing date: 2018-03-22).

Home Depot Inc., Income Statement, Revenues

USD $ in millions

	12 months ended	Jan 28, 2018		Jan 29, 2017		Jan 31, 2016		Feb 1, 2015		Feb 2, 2014		Feb 3, 2013
	Appliances
	Building Materials
	Décor
	Electrical
	Flooring
	Hardware
	Indoor Garden
	Kitchen and Bath
	Lighting
	Lumber
	Millwork
	Outdoor Garden
	Paint
	Plumbing
	Tools
	Net sales

Based on: 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27), 10-K (filing date: 2013-03-28).