Summary
This 8-K filing from Home Depot, Inc. (HD) on August 25, 2015, primarily serves to update the company's previously filed Annual Report on Form 10-K for the fiscal year ended February 1, 2015. The key update is a change in accounting policy related to shipping and handling costs. Previously classified under Operating Expenses, these costs, including those for online fulfillment, will now be included in the Cost of Sales. This reclassification aims to better align these expenses with the related revenue within the gross profit calculation. Importantly, management states that this change has no impact on Net Sales, Operating Income, Net Earnings, or Earnings per Share. Prior periods have been reclassified for comparative purposes. Investors should note that this filing does not introduce new financial results beyond what was already reported in subsequent 10-Q filings for May 3, 2015, and August 2, 2015.
Key Highlights
- 1Home Depot has changed its accounting policy for shipping and handling costs, including online fulfillment center costs.
- 2These costs will now be included in Cost of Sales instead of Operating Expenses.
- 3The objective of this change is to improve the alignment of these costs with revenue in the gross profit calculation.
- 4The accounting policy change had no impact on Net Sales, Operating Income, Net Earnings, or Earnings per Share.
- 5Prior fiscal year amounts have been reclassified to conform with the new presentation.
- 6This 8-K filing updates the 2014 Form 10-K to reflect these revised financial statements.
- 7The company emphasizes that this is not a restatement of previously issued financial statements.