The Home Depot Awards Hourly Associates a One-Time Tax Reform Bonus; Comments on Tax Cuts and Jobs Act of 2017
Friday, January 26th, 2018
The Home Depot announced plans to provide a new one-time cash bonus for U.S. hourly associates of up to $1,000 in the fourth quarter of fiscal 2017. The bonus will be paid in addition to the Company's longstanding Success Sharing bonuses for hourly associates.
"We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service," said Craig Menear, Chairman, CEO and President. "This incremental investment in our associates was made possible by the new tax reform bill."
The Company also announced that it currently estimates that the impact of the Tax Cuts and Jobs Act of 2017 will result in additional net tax expense of approximately $150 million in the fourth quarter of fiscal 2017 primarily related to taxes on unremitted offshore earnings. This charge, coupled with the one-time bonus payment, is expected to negatively impact the Company's previously provided fiscal 2017 diluted earnings-per-share guidance by approximately $0.19.
For fiscal 2018, the Company is still evaluating all the provisions of the tax reform legislation and currently estimates that the net impact of tax reform on its 2018 tax provision and cash taxes paid will be beneficial. Amid the changing retail environment, the Company intends to invest in its associates, its stores and the customer experience. The Company will provide full year guidance for fiscal 2018 on its fourth quarter/full-year 2017 earnings call on February 20, 2018.