Home Depot 2015 Annual Report Download - page 6

Table of Contents
4
Product Authority
Our product authority initiative is facilitated by our merchandising transformation and portfolio strategy, which is focused on
delivering product innovation, assortment and value. In fiscal 2015, we continued to introduce a wide range of innovative
new products to our DIY, DIFM and Pro customers, while remaining focused on offering everyday values in our stores and
online.
Our Products. In fiscal 2015, we introduced a number of innovative and distinctive products to our customers at attractive
values. Examples of these new products include EGO™ 58-volt cordless outdoor power tools (string trimmer, hedge trimmer,
blower, chainsaw and lawn mower); the Husky® 100 platform of mechanics tools; LifeProof Carpet®; Milwaukee® Cobalt
Red Helix™ drill bits; and Feit® Electric HomeBrite® Bluetooth® Smart LED light bulbs.
During fiscal 2015, we continued to offer value to our customers through our proprietary and exclusive brands across a wide
range of departments. Highlights of these offerings include Husky® hand tools and tool storage; Everbilt® hardware and
fasteners; Hampton Bay® lighting, ceiling fans and patio furniture; Vigoro® lawn care products; RIDGID® and Ryobi® power
tools; Glacier Bay® bath fixtures; HDX® storage and cleaning products; and Home Decorators Collection® furniture and
home décor. We will continue to assess departments and categories, both online and in-store, for opportunities to expand the
assortment of products offered within The Home Depot’s portfolio of proprietary and exclusive brands.
We maintain a global sourcing program to obtain high-quality and innovative products directly from manufacturers around
the world. In fiscal 2015, in addition to our U.S. sourcing operations, we maintained sourcing offices in China, Taiwan, India,
Italy, Mexico and Canada. With our acquisition of Interline, we also acquired additional sourcing offices in China, Thailand
and Indonesia.
The percentage of Net Sales of each of our major product categories (and related services) for each of the last three fiscal
years is presented in Note 1 to the Consolidated Financial Statements included in Item 8, "Financial Statements and
Supplementary Data". Net Sales outside the U.S. were $8.0 billion, $8.5 billion and $8.5 billion for fiscal 2015, 2014 and
2013, respectively. Long-lived assets outside the U.S. totaled $2.3 billion, $2.5 billion and $2.9 billion as of January 31,
2016, February 1, 2015 and February 2, 2014, respectively.
Quality Assurance. Our suppliers are obligated to ensure that their products comply with applicable international, federal,
state and local laws. In addition, we have both quality assurance and engineering resources dedicated to establishing criteria
and overseeing compliance with safety, quality and performance standards for our proprietary branded products. We also
have a global Supplier Social and Environmental Responsibility Program designed to ensure that all suppliers adhere to the
highest standards of social and environmental responsibility.
Environmentally-Friendly Products and Programs. The Home Depot is committed to sustainable business practices – from
the environmental impact of our operations, to our sourcing activities, to our involvement within the communities in which
we do business. We believe these efforts continue to be successful in creating value for our customers and shareholders. For
example, we offer a growing selection of environmentally-preferred products, which supports sustainability and helps our
customers save energy, water and money. Through our Eco Options® Program introduced in 2007, we have created product
categories that allow customers to easily identify products that meet specifications for energy efficiency, water conservation,
healthy home, clean air and sustainable forestry. As of the end of fiscal 2015, our Eco Options® Program included over
10,000 products. Through this program, we sell ENERGY STAR® certified appliances, LED light bulbs, tankless water
heaters and other products that enable our customers to save on their utility bills. We estimate that in fiscal 2015 we helped
customers save over $700 million in electricity costs through sales of ENERGY STAR® certified products and over
$300 million in product costs through ENERGY STAR® rebate programs. We also estimate our customers saved over
70 billion gallons of water resulting in over $590 million in water bill savings in fiscal 2015 through the sales of our
WaterSense®-labeled bath faucets, showerheads, aerators, toilets and irrigation controllers.
We continue to offer store recycling programs nationwide, such as an in-store compact fluorescent light ("CFL") bulb
recycling program launched in 2008. This service is offered to customers free of charge and is available in all U.S. stores. We
also maintain an in-store rechargeable battery recycling program. Launched in 2001 and currently done in partnership with
Call2Recycle, this program is also available to customers free of charge in all stores throughout the U.S. Through these
recycling programs, in fiscal 2015 we helped recycle over 680,000 pounds of CFL bulbs and over 930,000 pounds of
rechargeable batteries collected from our customers. In fiscal 2015, we also recycled over 170,000 lead acid batteries
collected from our customers under our lead acid battery exchange program, as well as over 200,000 tons of cardboard
through a nationwide cardboard recycling program across our U.S. stores. We believe our Eco Options® Program and our
recycling efforts drive sales, which in turn benefits our shareholders, in addition to our customers and the environment.