Home Depot 2006 Annual Report Download - page 12

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In addition to our retail stores, our business includes HD Supply, which distributes products and sells
installation services primarily to business-to-business customers, including home builders, professional
contractors, municipalities and maintenance professionals. HD Supply consists of four major platforms:
1) infrastructure, including waterworks and utilities; 2) construction, including construction supply,
lumber and building materials, electrical, plumbing/HVAC and interiors; 3) maintenance, including
facilities maintenance and industrial PVF; and 4) repair and remodel.
In February 2007, the Company announced its decision to evaluate strategic alternatives for HD
Supply, including a possible sale or initial public offering of the business. There can be no assurance
that any transaction will occur or, if one is undertaken, its terms or timing.
The Home Depot, Inc. is a Delaware corporation that was incorporated in 1978. Our Store Support
Center (corporate office) is located at 2455 Paces Ferry Road, N.W., Atlanta, Georgia 30339. Our
telephone number is (770) 433-8211.
We maintain an Internet website at www.homedepot.com. We make available on our website, free of
charge, our Annual Reports to shareholders, Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q, Current Reports on Form 8-K, Proxy Statements and Forms 3, 4 and 5 as soon as
reasonably practicable after filing such documents with, or furnishing such documents to, the SEC.
We include our website addresses throughout this filing only as textual references. The information
contained on our websites is not incorporated by reference into this Form 10-K.
Our Business
We operate in two reportable segments, Retail and HD Supply. You will find information concerning
the financial results and the total assets of each segment in Note 12 to the Consolidated Financial
Statements. Financial information about our operations outside the United States is also reported in
Note 12 to the Consolidated Financial Statements.
Retail Segment
Operating Strategy. Our operating strategy is to offer a broad assortment of high-quality merchandise
and services at competitive prices using knowledgeable, service-oriented personnel and strong
marketing and credit promotions. We believe that our associates’ knowledge of products and home
improvement techniques and applications is very important to our marketing approach and our ability
to maintain and enhance customer satisfaction.
Customers. The Home Depot stores serve three primary customer groups:
•Do-It-Yourself (‘‘D-I-Y’’) Customers: These customers are typically home owners who purchase
products and complete their own projects and installations. To complement the expertise of our
associates, The Home Depot stores offer ‘‘how-to’’ clinics taught by associates and merchandise
vendors.
•Do-It-For-Me (‘‘D-I-F-M’’) Customers: These customers are typically home owners who purchase
materials themselves and hire third parties to complete the project and/or installation. We
arrange for the installation of a variety of The Home Depot products through qualified
independent contractors.
•Professional Customers: These customers are professional remodelers, general contractors,
repairmen and tradesmen. In many stores, we offer a variety of programs to these customers,
including additional delivery and will-call services, dedicated staff, extensive merchandise
selections and expanded credit programs, all of which we believe increase sales to these
customers.
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