HD · 10-Q · 2026Q2 · Full report

Interest Rate Hedge Program

HOME DEPOT, INC. · 2026-05-27 · Importance 49 · Surprise 6

The Company had interest rate swap agreements with combined notional amounts of $5.4 billion at both May 3, 2026 and February 1, 2026, accounted for as fair value hedges that swap fixed for variable rate interest. The fair values of these agreements are recognized in other long-term liabilities and meet the GAAP shortcut method, so changes in the swaps’ fair values offset changes in the fair value of the hedged long-term debt. At May 3, 2026 the carrying amount of long-term debt (excluding current installments) subject to these fair value hedges was $14.5 billion. Management reported no new material hedging activity or material change in hedging arrangements during Q1 fiscal 2026.

Key facts

• Interest rate swap agreements notional amounts: $5.4 billion at both May 3, 2026 and February 1, 2026. source
• Carrying amount of long-term debt subject to fair value hedges at May 3, 2026: $14.5 billion. source
• Interest and other, net as a percentage of net sales for first quarter of fiscal 2026: 1.4% (interest and other, net $604 million). source
• Interest and other, net for the three months ended May 3, 2026: $604 million. source
• Cash collateral posted related to derivative instruments as of May 3, 2026: $0 million (company did not hold any cash collateral from counterparties as of May 3, 2026). source