Goodwill and Intangible Assets
Goodwill

The changes in the carrying amount of goodwill by reportable segment for 2025, 2024, and 2023 were as follows:

(In millions)Retail Home ImprovementOtherConsolidated
Goodwill, balance at February 2, 2024$311 $ $311 
Acquisitions— — — 
Goodwill, balance at January 31, 2025
$311 $ $311 
Acquisitions— 3,634 3,634 
Goodwill, balance at January 30, 2026
$311 $3,634 $3,945 

As of January 30, 2026, and January 31, 2025, the Company does not have any goodwill impairment.
Intangible Assets

The gross carrying amount and accumulated amortization of intangible assets, consist of the following:
January 30, 2026January 31, 2025
(In millions)Gross
Carrying Amount
Accumulated
Amortization
Net Carrying AmountGross
Carrying Amount
Accumulated
Amortization
Net Carrying Amount
Definite-lived intangible assets:
Customer-related$4,722 $(174)$4,548 $238 $(96)$142 
Trademarks and trade names1,100 (40)1,060 20 (19)
Other208 (42)166 (1)— 
Total definite-lived intangible assets$6,030 $(256)$5,774 $259 $(116)$143 
Indefinite-lived intangible assets:
Trademark$134 $— $134 $134 $— $134 
Total intangible assets$6,164 $(256)$5,908 $393 $(116)$277 

Amortization expense for intangible assets is as follows:
Years Ended
(In millions)January 30, 2026January 31, 2025February 2, 2024
Amortization expense$140 $13 $13 

Amortization expense expected to be recognized in future periods for intangible assets is as follows:

(In millions)Amortization Expense
Fiscal 2026$397 
Fiscal 2027329 
Fiscal 2028329 
Fiscal 2029329 
Fiscal 2030323 
Thereafter4,067 
Total$5,774 

Historical Timeline

Fiscal YearFiled
2026Mar 23, 2026Showing above
2023Mar 27, 2023
2022Mar 21, 2022

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.