Home Depot 2008 Annual Report Download - page 9

arrival at the center. This process allows improved transportation, simplified order processing at suppliers and reduced
lead time from the time that product needs at stores are determined to actual replenishment. We plan to open additional
RDCs during fiscal 2009 and 2010 and ultimately serve all of our U.S. stores from RDCs.
In fiscal 2008, approximately 35% of the merchandise shipped to our U.S. stores flowed through our distribution facilities.
The remaining merchandise was shipped directly from suppliers to our stores. The expansion of the RDC network is
expected to increase our distribution utilization. In addition to replenishing merchandise at our stores, we also provide
delivery of in-stock and special order product directly to our customers.
Associates. At the end of fiscal 2008, we employed approximately 322,000 associates, of whom approximately 22,500
were salaried, with the remainder compensated on an hourly or temporary basis. Approximately 65% of our associates are
employed on a full-time basis. We believe that our employee relations are very good. To attract and retain qualified
personnel, we seek to maintain competitive salary and wage levels in each market we serve.
Intellectual Property. Through our wholly-owned subsidiary, Homer TLC, Inc., we have registered or applied for
registration, in a number of countries, for a variety of internet domain names, service marks and trademarks for use in our
businesses, including The Home Depot»; Hampton Bay»fans, lighting and accessories; Glacier Bay»toilets, sinks and
faucets; Pegasus»faucets and bath accessories; and Workforce»tools, tool boxes and shelving. We have also obtained and
now maintain patent portfolios relating to certain products and services provided by The Home Depot, and continually
seek to patent or otherwise protect selected innovations we incorporate into our products and business operations. We
regard our intellectual property as having significant value to our business and as being an important factor in the
marketing of our brand, e-commerce, stores and new areas of our business.
Quality Assurance Program. We have both quality assurance and engineering resources who oversee the quality of our
directly imported, globally-sourced and proprietary products. Through these programs, we have established criteria for
supplier and product performance that are designed to ensure our products comply with federal, state and local quality and
performance standards. These programs also allow us to measure and track timeliness of shipments. These performance
records are made available to the factories to allow them to strive for improvement. The program addresses quality
assurance at the factory, product and packaging levels.
Environmental, Health & Safety (“EH&S”). We are committed to maintaining a safe environment for our customers
and associates and protecting the environment of the communities in which we do business. Our EH&S function in the
field is directed by trained associates focused primarily on the execution of the EH&S programs. Additionally, we have a
Store Support Center-based team of dedicated EH&S professionals who evaluate, develop, implement and enforce
policies, processes and programs on a Company-wide basis.
Environmental. The Home Depot is committed to conducting business in an environmentally responsible manner and
this commitment impacts all areas of our business, including store construction and maintenance, energy usage, product
selection and customer education.
In fiscal 2008, we spent approximately $27.5 million for energy efficiency related projects. By replacing HVAC units in
approximately 200 existing stores and switching to the use of T-5 lighting in approximately 700 existing stores, we
estimate cumulative savings to be approximately $28 million since fiscal 2006. In addition, we have implemented strict
operational standards that establish energy efficient practices in all of our facilities. These include HVAC unit temperature
regulation and adherence to strict lighting schedules, which are the largest sources of energy consumption in our stores, as
well as utilizing the Novar Energy Management and Alarm System in each store to monitor energy efficiency. We
estimate that by implementing and utilizing these energy saving programs we have avoided 1.6 billion pounds of
greenhouse gas emissions since fiscal 2006. We believe this is equivalent to removing approximately 132,000 cars from
the highway. In June 2008, we launched a nation-wide in-store compact fluorescent light bulb recycling program. This
service is offered to all customers free-of-charge and is available in all U.S. stores, including Alaska and Hawaii.
We have also taken additional measures to further our sustainability efforts. We partnered with the U.S. Green Building
Council and have built seven Leadership in Energy and Environmental Design (“LEED”) green certified and equivalent
stores. We offset the carbon emissions created by our facilities and a portion of those emissions created by business-
related travel through an agreement with The Conservation Fund that resulted in the planting of thousands of trees that
will help reduce the heat-island effect in urban areas, reduce erosion and help clean the air. Through our Eco Options
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