HOME DEPOT INC

Item 1. Legal Proceedings.

There were no material changes during the first three months of fiscal 2025 to our disclosure in Part I, Item 3. “Legal Proceedings” of our 2024 Form 10-K.

SEC regulations require us to disclose certain information about proceedings arising under federal, state or local environmental regulations if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to SEC regulations, the Company uses a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required. Accordingly, below we have provided an update regarding the civil consent decree we entered into with the U.S. Department of Justice, the U.S. Environmental Protection Agency (the “EPA”), and the states of Utah, Massachusetts, and Rhode Island in April 2021.

As previously reported, the decree required certain changes to lead-safe work practices in our installation services business and provided for stipulated penalties for failure to perform by third-party installers. In the first quarter of fiscal 2023, the EPA informed us that it believes we owe certain penalties for violations by third-party installers of documentation requirements under the decree. We are discussing with the EPA the basis for the stipulated penalties we allegedly owe under the decree and the aggregate amount of any stipulated penalties owed for the 42-month duration of the decree. We expect the decree to be terminated thereafter. While we cannot predict the aggregate amount of stipulated penalties we may ultimately owe to the EPA under the decree, such payments to date have totaled approximately $1.5 million, and we do not expect any such penalties to have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. Further, we have collected fines from our installers for the approximately $1.5 million paid to date, and we expect to recoup any additional amount we ultimately owe from corresponding fines we levy against our third-party installers.