8-KOther EventsExhibits & Filings

HOME DEPOT, INC. 8-K Report, Corporate Update (Jun 23, 2006)

Filed June 23, 2006For Securities:HD

Summary

This 8-K filing by The Home Depot, Inc. primarily addresses two key areas relevant to investors. Firstly, it details the modification of segment reporting to reflect the acquisition of Hughes Supply, Inc. The company will now report in two segments: Retail and Supply. This change, mandated by SFAS No. 131, involves reclassifying prior period segment information and does not alter previously reported financial statements but will impact future disclosures. Secondly, the filing acknowledges an informal inquiry initiated by the SEC staff regarding the company's stock option grant practices since 1996. While the company stated its intention to cooperate fully, it noted that the outcome is unpredictable but does not anticipate a material adverse effect on its financial position or results of operations. Investors should monitor any further developments regarding this inquiry.

Key Highlights

  • 1Home Depot is now reporting its results in two distinct segments: Retail and Supply, following the acquisition of Hughes Supply, Inc.
  • 2Prior period segment information will be reclassified for comparative purposes in future consolidated financial statements.
  • 3These segment reporting changes do not restate or revise previously filed financial statements.
  • 4The company disclosed that the SEC staff has initiated an informal inquiry into its stock option grant practices dating back to 1996.
  • 5Home Depot intends to cooperate fully with the SEC inquiry.
  • 6The company does not expect the SEC inquiry to have a material adverse effect on its financial position or results of operations.

Frequently Asked Questions

Home Depot is changing its segment reporting to reflect the significant increase in the size of its Home Depot Supply division due to the acquisition of Hughes Supply, Inc. This has altered the company's internal reporting and management structure, necessitating a new reporting framework with two segments: Retail and Supply.

No, the changes in segment reporting will not restate or revise previously filed financial statements regarding the company's financial position, results of operations, or cash flows. However, future consolidated financial statements will include reclassified segment information for prior periods on a comparative basis.

The SEC staff has initiated an informal inquiry into Home Depot's stock option grant practices and procedures conducted since 1996. This follows a review by the company itself, which was disclosed on June 16, 2006.

Home Depot stated that it intends to fully cooperate with the SEC staff. While the outcome is unpredictable, the company does not expect this informal inquiry to have a material adverse effect on its consolidated financial position or its results of operations.