Home Depot, Inc. in the New Millennium
Exhibit 6a
101-117
Home Depot: Income Statements ($ millions, except earnings per share)
2001
Years Ending January
2000
1999
1998
Net Sales
Cost of Merchandise Sold
Gross Profit
45,738
32,057
13,681
38,434
27,023
11,411
30,219
21,614
8,605
24,156
17,375
6,781
Operating Expenses
Selling and Store Operating
Pre-Opening
General and Administrative
Non-Recurring Charge
Total Operating Expenses
8,513
142
835
9,490
6,832
113
671
7,616
5,341
88
515
5,944
4,303
65
413
104
4,885
4,191
3,795
2,661
1,896
Interest and Investment Income
Interest Expense
Interest, net
47
(21)
26
37
(28)
9
30
(37)
(7)
44
(42)
2
Earnings Before Income Taxes
Income Taxes
Net Earnings
4,217
1,636
2,581
3,804
1,484
2,320
2,654
1,040
1,614
1,898
738
1,160
Basic Earnings Per Share
Diluted Earnings Per Share
1.11
1.10
1.03
1.00
0.73
0.71
0.53
0.52
Operating Income
-
Source:
Company 10-K.
Note:
Cost of merchandise sold includes all of the company’s depreciation and amortization
expense, which totaled $463 million, $373 million, and $283 million in years ending
January 2000, 1999, and 1998, respectively. By contrast, Lowe’s does not include
depreciation and amortizations in its cost of merchandise sold figures; it has a separate
operating expense line for them.
19
This document is authorized for use only in Luiz Augusto Martits's 4768 - Avaliação de empresas at FGV - EAESP from Aug 2025 to Feb 2026.
101-117
Home Depot, Inc. in the New Millennium
Exhibit 6b
Home Depot: Balance Sheets ($ millions)
Years Ending January
2001
2000
1999
Assets
Cash and Cash Equivalents
Short-term Investments
Receivables, net
Merchandise Inventories
Other Current Assets
Total Current Assets
167
10
835
6,556
209
7,777
168
2
587
5,489
144
6,390
469
4,293
109
4,933
Less Accumulated Depreciation and Amortization
Net Property and Equipment
4,230
6,167
2,877
665
1,032
261
15,232
2,164
13,068
3,248
4,834
2,279
493
791
245
11,890
1,663
10,227
2,739
3,757
1,761
419
540
206
9,422
1,262
8,160
Cost in Excess of the Fair Value of Net Assets Acquired
Other
Total Assets
314
226
21,385
311
153
17,081
268
104
13,465
Accounts Payable
Accrued Salaries and Related Expenses
Sales Taxes Payable
Other Accrued Expenses
Income Taxes Payable
Current Installments of Long-Term Debt
Total Current Liabilities
1,976
627
298
1,402
78
4
4,385
1,993
541
269
763
61
29
3,656
1586
395
176
586
100
14
2,857
Long-term Debt, excluding current installments
Other Long-Term Liabilities
Deferred Income Taxes
Minority Interest
1,545
245
195
11
750
237
87
10
1,566
208
85
9
Stockholders' Equity
Common Stock
Paid-in Capital
Retained Earnings
Other
Total Stockholders' Equity
116
4,810
10,151
(73)
15,004
115
4,319
7,941
(34)
12,341
111
2,817
5,876
(64)
8,740
Total Liabilities and Stockholders' Equity
21,385
17,081
13,465
Property and Equipment
Land
Buildings
Furniture, Fixtures and Equipment
Leasehold Improvements
Construction in Progress
Capital Leases
62
-
Liabilities and Stockholders' Equity
Source:
Company 10-K.
20
This document is authorized for use only in Luiz Augusto Martits's 4768 - Avaliação de empresas at FGV - EAESP from Aug 2025 to Feb 2026.
Home Depot, Inc. in the New Millennium
Exhibit 6c
101-117
Home Depot: Cash Flow Statements ($ millions)
2001
Cash Flows from Operating Activities
Net Earnings
Depreciation and Amortization
(Increase) Decrease in Receivables, net
Increase in Merchandise Inventories
Increase in Accounts Payable and Accrued Expenses
Increase in Income Taxes Payable
Other
Cash Flows from Investing Activities
Capital Expenditures
Purchase of Remaining Interest in The Home Depot Canada
Payments for Businesses Acqauired, net
Proceeds from Sales of Property and Equipment
Purchases of Investments
Proceeds from Maturieties of Investments
Advances Secured by Real Estate, net
Cash Flows from Financing Activities
(Repayments) Issuance of Commercial Paper Obligations, net
Proceeds from Long-Term Borrowings, net
Repayments of Long-Term Debt
Proceeds from Sale of Common Stock, net
Cash Dividends Paid to Stockholders
Minority Interest Congtributions to Partnership
Effect of Exchange Rate Changes
Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Years Ending January
2000
1999
1998
2,581
2,320
1,614
1,160
601
(246)
(1,075)
754
151
30
2,796
463
(85)
(1,142)
820
93
(23)
2,446
373
85
(698)
423
59
61
1,917
283
(166)
(885)
577
83
(23)
1,029
(3,558)
(26)
95
(39)
30
(32)
(3,530)
(2,581)
(101)
87
(32)
30
(25)
(2,622)
(2,053)
(261)
(6)
45
(2)
4
2
(2,271)
(1,420)
(61)
85
(194)
599
20
(971)
754
32
(29)
351
(371)
737
(4)
(1)
168
167
(246)
522
(14)
267
(255)
7
281
1
106
62
168
246
(8)
167
(168)
11
248
(4)
(110)
172
62
15
(40)
122
(139)
10
(32)
26
146
172
Source:
Company 10-K.
Note:
At the end of 1999, the company said it owned 77% of its stores and leased 23% of them. In recent years it had
increased the relative percentage of sores that were owned because it felt that doing so provided greater operating
control and flexibility and generally lower occupancy costs. It noted that the cost of new stores to be constructed
and owned by the company averaged $13.2 million. The cost to fix up stores to be leased averaged $4.3 million. The
cost of inventory for new stores averaged $3.2 million, net of vendor financing.
21
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101-117
Home Depot, Inc. in the New Millennium
Exhibit 7 Projected Growth in U.S. Market for
Home Improvement Products, as of June 2000
Year
Percent Change
over Previous Year
2000
6.30%
2001
3.20%
2002
4.00%
2003
4.40%
2004
4.60%
Source:
Home Improvement Research Institute.
Exhibit 8
Summary Data for Lowe's ($ millions)
2000
1999
1998
1997
$18,779
$15,905
$13,330
$11,108
NOPAT
$853
$727
$530
$398
NOPAT margin
4.5%
4.6%
4.0%
3.6%
Net assets
$8,029
$4,961
$3,545
$2,810
Operating ROA (NOPAT/Net assets)
10.6%
14.7%
15.0%
14.2%
Number of stores at year-end
650
576
520
477
Same-store sales increase
1.2%
6.0%
6.0%
4.0%
Sales per square foot
$277
$303
$273
$302
Sales
Source:
Company Annual Report and 10-K; casewriter’s calculations.
22
This document is authorized for use only in Luiz Augusto Martits's 4768 - Avaliação de empresas at FGV - EAESP from Aug 2025 to Feb 2026.