XML 33 R16.htm IDEA: XBRL DOCUMENT
v3.22.1

Stock-based Compensation | 12 Months Ended
--- | ---
Jan. 30, 2022
Share-based Payment Arrangement [Abstract] |
Stock-based Compensation | STOCK-BASED COMPENSATION Omnibus Stock Incentive Plans The Home Depot, Inc. Amended and Restated 2005 Omnibus Stock Incentive Plan (the “2005 Plan”) and The Home Depot, Inc. 1997 Omnibus Stock Incentive Plan (the “1997 Plan” and collectively with the 2005 Plan, the “Plans”) provide that incentive and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, deferred shares, and other stock-based awards may be issued to certain of our associates and non-employee directors. Under the 2005 Plan, the maximum number of shares of our common stock authorized for issuance is 255 million shares, with any award other than a stock option or stock appreciation right reducing the number of shares available for issuance by 2.11 shares. At January 30, 2022, there were approximately 117 million shares available for future grants under the 2005 Plan. No additional equity awards could be issued from the 1997 Plan after the adoption of the 2005 Plan on May 26, 2005. The following table presents total stock-based compensation expense, net of estimated forfeitures, including expense related to our ESPPs, and related income tax benefit:
in millions | Fiscal |  | Fiscal |  | Fiscal
2021 |  | 2020 |  | 2019
Pre-tax stock-based compensation expense | $ | 403 |  |  | $ | 310 |  |  | $ | 251 |
Income tax benefit | (86) |  |  | (58) |  |  | (49) |
After-tax stock-based compensation expense | $ | 317 |  |  | $ | 252 |  |  | $ | 202 |
At January 30, 2022, there was $496 million of unamortized stock-based compensation expense, which is expected to be recognized over a weighted average period of two years. The award types issued under the Plans are as follows: Stock Options. Under the terms of the Plans, incentive stock options and nonqualified stock options must have an exercise price at or above the fair market value of our stock on the date of the grant. Typically, nonqualified stock options vest at the rate of 25% per year commencing on the second anniversary date of the grant and expire on the tenth anniversary date of the grant. Additionally, a majority of our stock options may become non-forfeitable upon the associate reaching age 60, provided the associate has had five years of continuous service. No incentive stock options have been issued under the 2005 Plan. We estimate the fair value of stock option awards on the date of grant using the Black-Scholes option-pricing model. Our determination of fair value of stock option awards on the date of grant using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of variables. The following table presents the per share weighted average fair value of stock options granted and the assumptions used in determining fair value at the date of grant using the Black-Scholes option-pricing model:
| Fiscal |  | Fiscal |  | Fiscal
| 2021 |  | 2020 |  | 2019
Per share weighted average fair value | $ | 57.71 |  |  | $ | 36.77 |  |  | $ | 27.33 |
Risk-free interest rate | 1.0 | % |  | 0.6 | % |  | 2.2 | %
Assumed volatility | 26.5 | % |  | 29.9 | % |  | 19.8 | %
Assumed dividend yield | 2.2 | % |  | 3.1 | % |  | 2.9 | %
Assumed lives of options | 6 years |  | 6 years |  | 5 years
The following table presents the total intrinsic value of stock options exercised:
in millions | Fiscal |  | Fiscal |  | Fiscal
2021 |  | 2020 |  | 2019
Total intrinsic value of stock options exercised | $ | 237 |  |  | $ | 217 |  |  | $ | 241 |
The following table presents a summary of stock option activity by number of shares and weighted average exercise price during fiscal 2021:
shares in thousands | Number of Shares |  | Weighted Average Exercise Price
Outstanding at beginning of year | 4,350 |  |  | $ | 129.50 |
Granted | 277 |  |  | 295.92 |
Exercised | (955) |  |  | 96.10 |
Forfeited | (31) |  |  | 202.23 |
Outstanding at end of year | 3,641 |  |  | 150.30 |
Shares of common stock issued from stock option exercises may be issued from authorized and unissued common stock or treasury stock. The following table presents details regarding outstanding and exercisable stock options at January 30, 2022:
shares in thousands, dollars in millions, except for per share amounts | Number of Shares |  | Intrinsic Value |  | Weighted Average Remaining Life |  | Weighted Average Exercise Price
Outstanding | 3,641 |  |  | $ | 787 |  |  | 5.0 years |  | $ | 150.30 |
Exercisable | 2,291 |  |  | 572 |  |  | 3.6 years |  | 116.78 |
Restricted Stock and Performance Share Awards. Restrictions on the restricted stock issued under the Plans generally lapse over various periods up to five years. At the grant date of the award, recipients of restricted stock are granted voting rights and generally receive dividends on unvested shares, paid in the form of cash on each dividend payment date. Dividends paid on unvested shares were immaterial for fiscal 2021, fiscal 2020, and fiscal 2019. Additionally, the majority of our restricted stock awards may become non-forfeitable upon the associate’s attainment of age 60, provided the associate has had five years of continuous service. We have also granted performance share awards under the Plans. These awards provide for the issuance of shares of our common stock at the end of the three-year performance cycle based upon our performance against target average ROIC and operating profit over that performance cycle. Additionally, the awards become non-forfeitable upon the associate’s attainment of age 60, provided the associate has had five years of continuous service and minimum performance targets are achieved. Recipients of performance share awards have no voting rights until the shares are issued following completion of the performance period. Dividend equivalents accrue on the performance shares (as reinvested shares) and are paid upon the payout of the award based upon the actual number of shares earned. The fair value of the restricted stock and performance shares is based on the closing stock price on the date of grant and is expensed over the period during which the restrictions lapse. Restricted Stock Units. Each restricted stock unit entitles the associate to one share of common stock to be received upon vesting up to five years after the grant date. Additionally, the majority of these awards may become non-forfeitable upon the associate reaching age 60, provided the associate has had five years of continuous service. Recipients of restricted stock units have no voting rights until the vesting of the award. Recipients receive dividend equivalents that accrue on unvested units and are paid out in the form of additional shares of stock on the vesting date. The fair value of the restricted stock units is based on the closing stock price on the date of grant and is expensed over the period during which the units vest. The following table presents a summary of restricted stock, performance shares, and restricted stock unit activity during fiscal 2021:
shares in thousands | Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested at beginning of year | 4,098 |  |  | $ | 180.87 |
Granted | 1,264 |  |  | 293.63 |
Vested | (1,380) |  |  | 176.00 |
Forfeited | (273) |  |  | 214.98 |
Nonvested at end of year | 3,709 |  |  | 218.60 |
The following table presents the total fair value of restricted stock, performance shares, and restricted stock units vested:
in millions | Fiscal |  | Fiscal |  | Fiscal
2021 |  | 2020 |  | 2019
Total fair value vested | $ | 405 |  |  | $ | 271 |  |  | $ | 303 |
Deferred Shares. We grant awards of deferred shares to non-employee directors under the Plans. Each deferred share entitles the non-employee director to one share of common stock to be received following termination of Board service. Recipients of deferred shares have no voting rights and receive dividend equivalents that accrue and are paid out in the form of additional shares of stock upon payout of the underlying shares following termination of service. The fair value of the deferred shares is based on the closing stock price on the date of grant and is expensed immediately upon grant. The following table presents deferred shares granted to non-employee directors:
| Fiscal |  | Fiscal |  | Fiscal
2021 |  | 2020 |  | 2019
Deferred shares granted to non-employee directors | 15,000 |  |  | 18,000 |  |  | 22,000 |
Employee Stock Purchase Plans We maintain two ESPPs (a U.S. and a non-U.S. plan). The plan for U.S. associates is a tax-qualified plan under Section 423 of the Internal Revenue Code. The non-U.S. plan is not a Section 423 plan. At January 30, 2022, there were approximately 17 million shares available under the U.S. plan and approximately 19 million shares available under the non-U.S. plan. The purchase price of shares under the ESPPs is equal to 85% of the stock’s fair market value on the last day of the purchase period, which is a six-month period ending on December 31 and June 30 of each year. During fiscal 2021, there were approximately one million shares purchased under the ESPPs at an average price of $305.14. Under the outstanding ESPPs at January 30, 2022, associates have contributed $22 million to purchase shares at 85% of the stock’s fair market value on the last day of the current purchase period, June 30, 2022.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration