2011 annual report - nabpac...hrustich in cutting the board to officially re-open store 1252 in...

2011ANNUAL REPORT

Contributions to The Home Depot PAC are not tax deductible. Contributions are voluntary and will be used for political purposes. You have the right to refuse to contribute without any reprisal.

The Home Depot Political Action Committee1155 F Street NW, Suite 400Washington, DC 20004

For more information:Phone: 202.393.4400 | Fax: 202.393.4414

Email: [email protected]

Top Left Photo: California General Assembly Member Fiona Ma (D-CA) gets a tour of Store 0639 in Colma, California. Top Middle Photo: Congressman Jim Cooper (D-TN) gets an Orange Apron during his visit to Store 0772 in Bellevue, Tennessee. Top Right Photo: Congressman Jon Runyan (R-NJ) is presented with a The Home Depot PAC-themed Orange Apron by SM Kathryn Caulfield onhis visit to Store 0920 in Toms River, New Jersey. Bottom Left Photo: Congressman Ben Quayle (R-AZ) hears from associates at Store 0486 in Phoenix, Arizona. Bottom Right Photo:Congressman Jim Matheson (D-UT) receives a tour from associates at Store 4403 in Salt Lake City,Utah.

Mission Statement

The Home Depot

Political Action

Committee

supports candidates

for public office

who advocate

policies that

promote a

favorable business

climate for the

growth and

profitability of

The Home Depot.

“Overall, it was a great opportunity for Fiona Ma to seefirsthand what our store is notonly doing to help support ourcommunity, but also how ourstore is playing an integral part in creating and offering new andinnovative solutions that not onlybenefit the customer, but benefitthe environment as well.”– David Fogg, Operations Manager, Store 639 in Colma, California who hosted Assemblywoman Fiona Ma

Top Left Photo: The Orange Apron presented to Congressman Cory Gardner (R-CO) during his visit to Store 1521 in Longmont, Colorado. Top Middle Photo: Congressman Cory Gardner (R-CO) gets a tour from ASM Chanel Kesler and other associates at Store 1521 in Longmont, Colorado. Top Right Photo: Congressman Mick Mulvaney (R-SC) learns about DeWalt tools from associates at Store 1114 in Rock Hill, South Carolina.

“He stated he would love to workfor us here at the CommerceHome Depot. Thanks again forthe opportunity to showcaseStore 0654…and we ended withThe Home Depot Cheer!!” – Sal Prieto, Store Manager, Store 0654in Commerce, California who hosted Assemblyman Ricardo LaraLeft Photo: Congressman Michael Grimm (R-NY) meets with SM Lora Isolano and associates during his tour of Store 6150 in

Staten Island, New York. Middle Photo: Congressman Mo Brooks (R-AL) meets with associates at Store 0803 in Huntsville, Alabama. Right Photo: Congressman Todd Young (R-IN) gets help learning The Home Depot Cheer from Sales Specialist JakeStewart, at store 2002 in Clarksville, Indiana.

Sto

re w

alks

California GeneralAssembly Member

Ricardo Lara (D-CA) is

presented with a framed

Orange Apron,commemorating

his visit to Store 0654

in Commerce, California.

Photos on front cover: Top Left Photo: Former Home Depot associate, Congressman Frank Guinta (R-NH), poses with SM Dave Dardas and DM Gene Kelly during his visit to Store 3401 in Londonderry, New Hampshire. Top Middle Photo: Congresswoman Jackie Speier (D-CA) cuts a key during her "Day in the Life of a Home Depot Associate" at Store 0632 in San Mateo, California. Top Right Photo: Senator Mark Begich (D-AK)receives a tour of Store 1301 in Anchorage, Alaska from SM Jason DeJardin. Bottom Right Photo: US House Majority Leader Eric Cantor (R-VA) ispresented with his own Orange Apron by CEO Frank Blake and VP of Government Relations Kent Knutson, during his visit to the SSC.

“Thank you, it

seemed to go really

well. She was very

involved with the

customers and the

employees. She

loved the apron

and said she will

hang it in her

office. Thank you

for the opportunity.”

– Jeffery Morris,

Store Manager, Store 6871

in Titusville, Florida who hosted

Congresswoman Sandy Adams

In 2011, store associates hosted a total of 53 Congressional store walks across thecountry. Members of Congress from 24 different states and several local elected officials learned about The Home Depot from the perspective of Store Managers andtheir teams. Congressional store walks give elected officials a hands-on feel for how our business operates, which in turn helps us protect our business when legislation iswritten and passed.

While donning an Orange Apron, strolling through the store with groups of eager associates, and participating in high-spirited Home Depot cheers, elected officials havethe opportunity to discuss with their constituents issues that affect the stores every day.The Home Depot experienced two major legislative victories with the help of our storewalk program and widespread grassroots and government relations efforts. Store associates discussed the importance of lowering interchange, or swipe, fees that arecharged every time a customer uses a debit or credit card; this summer, Congress votedto limit those fees. Also, associates asked their officials to level the playing field betweenbrick-and-mortar and online-only retailers by requiring all retailers to charge the salestax that is owed on any purchase. To date, 16 states have acted on e-Fairness.

In addition to helping to protect our business, store walks present associates with an opportunity to host elected officials who have connections to The Home Depot and whotake their store walk experience a step further. Associates from Store 3401 in Londonderry, New Hampshire hosted Congressman Frank Guinta (R-NH) in July. Congressman Guinta, a former D25 part-time associate, visited the store 15 years afterworking at Store 2670 in Quincy, Massachusetts, while saving money to buy his wife her engagement ring. He complimented Store Manager Dave Dardas and his team on upholding the company-wide value of “Putting Customers First,” noting that he learnedthat same value over a decade ago. Associates from Store 1301 in Anchorage, Alaska welcomed Senator Mark Begich (D-AK), who posted about his store experience on Facebook saying, “Had a great meeting with the folks at the Tudor Home Depot in Anchorage. I get my best ideas and feedback from the working men and women of ourgreat state.”

Store walks are fun opportunities for associates and their Store Managers to share with their elected officials the great work that The Home Depot does for its customers and communities.

Congressional Store Walks Make a Difference

To host a Congressional store walk in your store, contact Sarah Sobecki at [email protected] or 202-393-4454.

Dear PAC Donors,

Thank you for supporting The Home Depot Political Action Committee (PAC), aswell as our grassroots and legislative efforts in 2011. With your commitment toour PAC and to OrangeVoice, we made quite an imPACt in 2011:

1,360,000 dollars raised

1,100,000 dollars disbursed

53,000 grassroots letters sent to elected officials

11,241 politically engaged associates

53 store walks hosted

These are powerful statistics. As you read through this Annual Report, youshould be proud of the imPACt you had on the political process.

My challenge to you in 2012 is simple:

Get involved. Be heard. Make a difference.

Whether you decide to increase your PAC contribution, write a letter to yourCongressman or vote in the 2012 Presidential Election, you can have an imPACt on both the future of our Company and our country.

Thank you for your continued support of The Home Depot PAC and for usingyour OrangeVoice to make a difference. We look forward to working with you in the year ahead.

Kent KnutsonChair, The Home Depot PAC

Top Photo: Michigan State Representative LisaPosthumus Lyons (R-MI) gets a tour of the paintdepartment during her visit to Store 2270 inWalker, Michigan. Middle Photo: CongresswomanSandy Adams (R-FL) learns about countertop solutions during her visit to Store 6871 in Titusville, Florida. Bottom Photo:Congresswoman Diane Black (R-TN) meets with the management team at Store 0735 inHendersonville, Tennessee.

Welcom

e Lette

r

Sto

re w

alks

Board of DirectorsExecutive CommitteeKent Knutson, ChairVice President, Government Relations

Ted Decker, TreasurerSenior Vice President, Finance

Kelly Barrett, Assistant TreasurerVice President, Internal Audit

Atlanta Store Support CenterHuman Resources

Derek BottomsVice President, Employment Practices

Brant SuddathDirector, Benefits

LegalBriley BrisendineVice President, Legal

Corporate Communications and External AffairsTBD

Information ServicesDan PhillipsVice President, Information Services

Don MorrisDirector, Information Services

David SolomonAustin Tech CenterManager, Information Services

OperationsChris DuffyVice President, Labor Strategy

MerchandisingMarty GallagherVice President, Merchandising

Supply ChainTravis LawrenceSenior Director, HR Supply Chain

OnlineMike AmendVice President,Product Management and Site Operations

MarketingTBD

Northern DivisionCentralJim BejnaRegional Director, Human Resources

Northern PlainsBill LappinDistrict Manager

Ohio ValleyLloyd JarrellDirector, Talent Management

New EnglandBob LundyDistrict Manager

NY MetroColleen GeeDistrict Manager

NJ MetroTBD

MidwestDave DawberDistrict Manager

Mid-AtlanticVinny ScaleseRegional Vice President

Southern DivisionSouthwestSantiago BernardezRegional Vice President

South AtlanticHaydn ChilcottRegional Vice President

Mid-SouthJohn ChiassonRegional Director Operations

GulfRicky DezayasRegional Pro Sales Manager

SoutheastDavid HawkinsRegional Vice President

South FloridaJeff BeesingStore Manager

Western DivisionPacific NorthwestJeremy WallisDistrict Manager

Pac Mountain DesertTim PfeifferRegional Vice President

Pac NorthAnthony HurstRegional Vice President

Pac CentralJaime CastilloDistrict Manager

Pac SouthMike AstorinoDistrict Manager

2012 Legislative Initiatives• Stop the National Labor Relations Board (NLRB) from implementing pieces of the Employee

Free Choice Act (EFCA) through rules and regulations.

• Close the decades-old loophole that allows online-only retailers, like Amazon.com, to avoid

collecting sales tax, which puts multi-channel retailers, like The Home Depot, at a six to ten

percent pricing disadvantage.

• Support federal and state efforts to deepen the Port of Savannah in Georgia, which would

allow larger container ships to enter the Port, making it quicker and easier to deliver

products to our stores.

• Increase the weight trucks can carry, allowing the products we sell to reach our stores more

efficiently – benefitting both our bottom line and our environment.

• Create partnerships between store leadership and local governments to mitigate local day

labor issues.

• Enact Hurricane Preparedness and Energy Star Sales Tax Holidays to help our customers

save money and increase sales in our stores.

• Increase state and federal penalties for organized retail crime – particularly e-fencing and

copper/metal theft.

• Oppose new container fees and restriction on goods movement and the forced unionization

of truck drivers which would only increase the costs of getting product to our stores.

• Defeat product bans and reduce burdens on our store associates by preventing mandated

product take-back initiatives.

2012 Legislativ

e In

itiativ

es

Board of Directo

rs

Top Left Photo: California State Senator Curren Price (D-CA) puts on his personalized Orange Apron, as he beginshis tour of Store 1061 in Ladera Heights, California. Top Right Photo: Congressman Randy Hultrgren (R-IL) meetsthe team on his visit to Store 1921 in Geneva, Illinois. Middle Left Photo: DM Bob Beachy assists Fire Chief SteveHrustich in cutting the board to officially re-open Store 1252 in Johnson City, New York, after the store was closeddue to severe damage during Tropical Storms Lee and Irene. Middle Right Photo: Congressman Gus Bilirakis (R-FL)learns about hurricane preparedness at Store 6311 in Tampa, Florida. Bottom Left Photo: This Florida-themed Orange Apron was presented to Congressman Daniel Webster (R-FL) during his visit to Store 6328 in South Chase,Florida. Bottom Right Photo: California State Senator Ed Hernandez (D-CA) meets with SM Mike Brossin and associates at Store 8463 in West Covina, California.

“I believe the PAC is important and that it is

our responsibility to educate all salaried

managers on the importance of the

legislative issues thatdirectly impact our

Company, stores andassociates each day.”

- Jason Culpepper,


and PAC Captain

“The Home Depot PAChas always been

important to me andthe entire Midwest

Region. The PAC is aneasy way to get

involved in the politicalprocess while helpingelect people who will

ensure there is a business-friendly

environment to run our stores and operate

our business.” - Dave Dawber,

District Manager and Director,

The Home Depot PAC Board

Top Left Photo: Congressman Pat Meehan (R-PA) and SM Aaron Wyley meet with a customer during CongressmanMeehan’s visit to Store 4114 in Upper Darby, Pennsylvania. Top Right Photo: Governor Rick Scott (R-FL) kicks off hurricane season with a press conference at Store 6367 in Orlando, Florida. Bottom Left Photo: County Executive PatBrennan signs the ceremonial board at the re-opening of Store 1252 in Johnson City, New York, after the store wasclosed due to severe damage during Tropical Storms Lee and Irene. Bottom Right Photo: Congressman Randy Hultrgren (R-IL) learns about the Garden department during his tour of Store 1921 in Geneva, Illinois.

Get InvolvedPAC Member Benefits

“I support The

Home Depot PAC

because it is

important we look

out for the best

interest of our

business. I

encourage all

salaried associates

to get involved,

read the updates,

keep up to date

with what is

going on in our

communities, and

have a voice in the

political process.”– Bill Lappin,



Your membership in The Home Depot PAC sends a powerful message: it says to elected officialsthat you believe your involvement in the politicalprocess makes a difference and that your OrangeVoice matters. The Home Depot PAC could not agree more and is committed to regularcommunication to ensure you understand the issues imPACting our Company so you can be asuccessful advocate for The Home Depot. Thereare two different PAC membership levels – PAC Member and PAC Builder.

PAC Members receive the following benefits:

• PAC Apron Pin• PAC Match• The Home Depot PAC Newsletter

and Election Updates• imPACt Alerts — breaking political

news alerts• Political Updates with Members

of Congress• Pizza and Politics Events at the

Atlanta Store Support Center (SSC)

PAC Builders, those salaried associates who

give at or above the recommended level, receiveall the benefits outlined above, plus:

• PAC Builder Punchlist – an exclusive weekly legislative update

• PAC Polo Shirt

If you are not a PAC Builder, andare interested in increasing your

PAC contribution, please visitwww.HomeDepotPAC.com today.

Our PAC supports candidates who support issues that grow the top and bottomlines for The Home Depot. Your support of the PAC provides a true return on investment for our Company, our associates and our customers. The PAC is just one aspect of our government relations activities. In 2011, our legislative advocacy saved The Home Depot millions of dollars in annualized savings. The following federal, state and local victories imPACted all areas of our business.

More 2011 Victories

Northern DivisionIllinois

• Enacted e-Fairness legislation that will prevent online-only retailers, like Amazon.com, from having a competitive advantage over multi-channel retailers, like The Home Depot.

New York• Changed a Westchester County partial payment ordinance that would have impacted our Yonkers store

and cost it $750,000 per year.

Pennsylvania• Governor Tom Corbett (R) signed the partial pay reform bill that will save The Home Depot $6 million

per year. The reform allows customers to continue to pay for all the costs of their install project at the time of purchase rather than 30 percent up front and the balance upon completion.

Southern DivisionArkansas

• Governor Mike Beebe (D) signed an e-Fairness bill into law, which will help level the playing field between online-only retailers, like Amazon.com, and multi-channel retailers, like The Home Depot.

Florida• Passed legislation in Florida prohibiting city and county governments from passing individual

fertilizer bans.

Texas• Texas Governor Rick Perry (R) signed an e-Fairness bill into law which will help level the playing field

between online-only retailers and multi-channel retailers.• Preserved the Sales Tax Vendor Allowance, benefitting the Company $7 million.

Western DivisionCalifornia

• Defeated an employee mandate at the California ports that would have made it easier to unionize truck

drivers, which ultimately would have driven up the cost of getting products to our stores.

Colorado• Partially reinstated the Sales Tax Vendor Allowance in Colorado at 2.2 percent for two years, saving the

Company $1.9 million annually.

Top Photo: Congressman Tim Walberg (R-MI) models his Orange Apron from his tour of Store 2766in Coldwater, Michigan. Middle Photo: Associates atStore 4114 in Upper Darby, Pennsylvania greet Congressman Pat Meehan (R-PA) with handmadecampaign signs. Bottom Photo: The Home Depot PACTreasurer Ted Decker and Director of Finance AaronSurasky meet with Governor Haley Barbour (R-MS) in Georgia.

Legislativ

e Victo

ries

PAC Mem

ber Benefits

PAC Matc

h

“Big banks have not lost many fights in Washington in the aftermath of the Wall Street bailout, but Wednesday'svote underscored at least one limit on their power. Wall Street can beat almost anyone in a legislative brawl, but itcannot defeat the entire American retail industry.” – Huffington Post

In 2010, federal legislation was passed that paved the way for reducing the skyrocketing fees The Home Depot pays to acceptdebit cards. However, in 2011, the big banks and credit card companies attempted to delay the law from moving forward.Our opponents fought hard and dirty to delay the Federal Reserve Bank from issuing final rules on debit interchange fee reform, but it is not our nature to back down from a fight. Our orange-blooded associates had a direct imPACt on preventingthe big banks and credit card companies from rolling back a reduction in debit card interchange fees by sending over 12,700 letters to their elected officials. Reduced debit card fees will provide real savings that will benefit our stores and customers – up to $35 million annually.

Michigan Item Pricing“It’s bad for business and it’s bad for consumers. Let’s make item pricing one law that’s out of stock.”– Michigan Governor Rick Snyder (R)

For more than 30 years, our Michigan associates were required by law to individually price virtually every item sold in ourstores. Finally, after years of working to update the antiquated Michigan Item Pricing law, we were able to repeal the law and turn the item pricing tasking jobs into customer facing positions to drive sales and engage customers. The imPACt of this victory is a savings of $2.7 million per year and allows our Michigan Store Managers to reallocate 62 hours/week. This victorywould not have been possible without our Michigan District Item Pricing Champions and the 5,000 associates who made theirOrangeVoice heard on this issue.

California e-Fairness“This landmark legislation not only levels the playing field between online retailers and California's brick-and-mortar businesses, it will also create tens of thousands of jobs and inject hundreds of millions of dollars back into critical services like education and public safety in future years. It's time for Washington to follow our lead and forge a bipartisan national solution.” – California Governor Jerry Brown (D)

California Governor Jerry Brown signed AB 155 into law on September 23, 2011. The bill requires Amazon and otheronline-only retailers to begin collecting sales taxes on September 15, 2012, giving our stores and .com business theability to compete on a level playing field. Our orange-blooded California associates had a direct imPACt on the passage of this bill, sending close to 14,000 letters to the Governor and their elected officials. California was not theonly state where e-Fairness legislation was passed last year; legislation was passed in some of the most liberal andmost conservative states, including: Arkansas, Colorado, Connecticut, Illinois, New York, Rhode Island, South Carolina,South Dakota, Vermont and Texas. Ultimately, closing this loophole will require federal legislation, which remains a toplegislative priority in 2012.

Interchange

Top Three Legislative Victories

PAC Match is one

of the many

membership

benefits of The

Home Depot PAC.

If you are not

currently taking

advantage of

PAC Match, you are

missing out on a

great opportunity

to support two

very important

programs – the

PAC and your

favorite charity.

For every dollar an associate contributes to The Home Depot PAC, The Home Depot will match that contribution dollar-for-dollar with a donation to the charity of their choice, in their name. This program allows our associates to support two very importantprograms – the PAC and their favorite charity.

In 2012, we are making the PAC Match program even stronger by removing the $1,000 cap on matching contributions. This means The Home Depot will match 100 percent of all PAC contributions. This is a win-win for both our associates and for the charities thatPAC Match supports.

In 2011, The Home Depot matched approximately $640,000 toover 580 charities. Below is a list of the top 10 charities that received PAC Match funds.

Exciting Changes to PAC Match in 2012

Top 10 Charities

The Homer Fund

Atlanta Children’s Shelter Inc.

Alliance for Lupus Research

St. Jude Children’s Research Hospital Inc.

United Way International

Children’s Heatlhcare of Atlanta

American Cancer Society

American Society for the Prevention of Cruelty to Animals

Girls Incorporated of Greater Atlanta

Girl Scouts

If you are not participating in PAC Match, please visit the PAC Match section of www.HomeDepotPAC.comBe Heard

Legislativ

e Victo

ries

Beginning Balance (as of 1/1/11)…………………………………………$1,368,505

Receipts

Payroll Deductions…………………………………………………………………$1,297,878

Personal Checks……………………………………………………………………$ 57,316

Other/ Interest………………………………………………………………………$ 1,150

Total………………………………………………………………………………………$1,356,344

Disbursements

Federal Committees………………………………………………………………$1,066,000

Non-Federal Committees………………………………………………………$ 28,760

Other……………………………………………………………………………………$ 945

Total………………………………………………………………………………………$1,095,705

Ending Balance (as of 12/31/11)…………………………………………$1,629,144

Financial HighlightsThe Home Depot PAC works to elect individualswho will make decisions that positively imPACtnot only The Home Depot, but also our associatesand customers. In 2011, our PAC contributedover $1 million to strategically identified candidates. Our PAC does not consider politicalparty or social issues when deciding which candidates to support. We base our contributionson four criteria:

1. Service on key committees that frequentlylegislate on issues of importance to The Home Depot, with emphasis on the leadership of those committees.

2. Favorable voting record or position on legislative issues that imPACt our associates, customers and the Company’s profitability.

3. Endorsement by pro-business and retail trade associations, such as the Retail Industry Leaders Association (RILA),

U.S. Chamber of Commerce and National

Federation of Independent Business (NFIB).

4. Strong constituency, including the location of a Home Depot store, regional office or distribution center in the candidate’s district, or a relationship with a PAC BoardMember or associates from a store walk or

office visit.

Disbursements

To learn which candidates our PAC supports

in your state, please visit www.HomeDepotPAC.com.

Annual Growth

Top Left Photo: Congressman Billy Long (R-MO) sees the breakroom and meets with associates at Store 3012 in Springfield, Missouri. Top Right Photo: Congressman Tom Marino (R-PA) putson his Orange Apron and meets with SM Eric Mitchell during hisvisit to Store 6956 in Honesdale, Pennsylvania. Bottom Left Photo:Congressman Chris Gibson (R-NY) gets a tour during his visit toStore 6176 in Catskill, New York. Bottom Right Photo: CongressmanSteve Womack (R-AR) hears from SM Kevin Schiller and associatesat Store 1409 in Harrison, Arkansas.

“I believe there has

never been a more

critical time to

support The Home

Depot PAC and

protect the

interests of our

Company, our

associates and

our customers.” - Bob Hommerbocker,

District Manager

and PAC Captain

“I joined the PAC

because it is a way for

me to support our

Company and make a

positive impact in

the political arena. I

also take advantage

of the PAC Match

program, one of the

many benefits of our

PAC membership.”Eric Hirshfeld,


and PAC Captain

Financial Highlig

hts

& Disbursem

ents

PAC Matc

h

“Big banks have not lost many fights in Washington in the aftermath of the Wall Street bailout, but Wednesday'svote underscored at least one limit on their power. Wall Street can beat almost anyone in a legislative brawl, but itcannot defeat the entire American retail industry.” – Huffington Post

In 2010, federal legislation was passed that paved the way for reducing the skyrocketing fees The Home Depot pays to acceptdebit cards. However, in 2011, the big banks and credit card companies attempted to delay the law from moving forward.Our opponents fought hard and dirty to delay the Federal Reserve Bank from issuing final rules on debit interchange fee reform, but it is not our nature to back down from a fight. Our orange-blooded associates had a direct imPACt on preventingthe big banks and credit card companies from rolling back a reduction in debit card interchange fees by sending over 12,700 letters to their elected officials. Reduced debit card fees will provide real savings that will benefit our stores and customers – up to $35 million annually.

Michigan Item Pricing“It’s bad for business and it’s bad for consumers. Let’s make item pricing one law that’s out of stock.”– Michigan Governor Rick Snyder (R)

For more than 30 years, our Michigan associates were required by law to individually price virtually every item sold in ourstores. Finally, after years of working to update the antiquated Michigan Item Pricing law, we were able to repeal the law and turn the item pricing tasking jobs into customer facing positions to drive sales and engage customers. The imPACt of this victory is a savings of $2.7 million per year and allows our Michigan Store Managers to reallocate 62 hours/week. This victorywould not have been possible without our Michigan District Item Pricing Champions and the 5,000 associates who made theirOrangeVoice heard on this issue.

California e-Fairness“This landmark legislation not only levels the playing field between online retailers and California's brick-and-mortar businesses, it will also create tens of thousands of jobs and inject hundreds of millions of dollars back into critical services like education and public safety in future years. It's time for Washington to follow our lead and forge a bipartisan national solution.” – California Governor Jerry Brown (D)

California Governor Jerry Brown signed AB 155 into law on September 23, 2011. The bill requires Amazon and otheronline-only retailers to begin collecting sales taxes on September 15, 2012, giving our stores and .com business theability to compete on a level playing field. Our orange-blooded California associates had a direct imPACt on the passage of this bill, sending close to 14,000 letters to the Governor and their elected officials. California was not theonly state where e-Fairness legislation was passed last year; legislation was passed in some of the most liberal andmost conservative states, including: Arkansas, Colorado, Connecticut, Illinois, New York, Rhode Island, South Carolina,South Dakota, Vermont and Texas. Ultimately, closing this loophole will require federal legislation, which remains a toplegislative priority in 2012.

Interchange

Top Three Legislative Victories

PAC Match is one

of the many

membership

benefits of The

Home Depot PAC.

If you are not

currently taking

advantage of

PAC Match, you are

missing out on a

great opportunity

to support two

very important

programs – the

PAC and your

favorite charity.

For every dollar an associate contributes to The Home Depot PAC, The Home Depot will match that contribution dollar-for-dollar with a donation to the charity of their choice, in their name. This program allows our associates to support two very importantprograms – the PAC and their favorite charity.

In 2012, we are making the PAC Match program even stronger by removing the $1,000 cap on matching contributions. This means The Home Depot will match 100 percent of all PAC contributions. This is a win-win for both our associates and for the charities thatPAC Match supports.

In 2011, The Home Depot matched approximately $640,000 toover 580 charities. Below is a list of the top 10 charities that received PAC Match funds.

Exciting Changes to PAC Match in 2012

Top 10 Charities

The Homer Fund

Atlanta Children’s Shelter Inc.

Alliance for Lupus Research

St. Jude Children’s Research Hospital Inc.

United Way International

Children’s Heatlhcare of Atlanta

American Cancer Society

American Society for the Prevention of Cruelty to Animals

Girls Incorporated of Greater Atlanta

Girl Scouts

If you are not participating in PAC Match, please visit the PAC Match section of www.HomeDepotPAC.comBe Heard

Legislativ

e Victo

ries

Get InvolvedPAC Member Benefits

“I support The

Home Depot PAC

because it is

important we look

out for the best

interest of our

business. I

encourage all

salaried associates

to get involved,

read the updates,

keep up to date

with what is

going on in our

communities, and

have a voice in the

political process.”– Bill Lappin,



Your membership in The Home Depot PAC sends a powerful message: it says to elected officialsthat you believe your involvement in the politicalprocess makes a difference and that your OrangeVoice matters. The Home Depot PAC could not agree more and is committed to regularcommunication to ensure you understand the issues imPACting our Company so you can be asuccessful advocate for The Home Depot. Thereare two different PAC membership levels – PAC Member and PAC Builder.

PAC Members receive the following benefits:

• PAC Apron Pin• PAC Match• The Home Depot PAC Newsletter

and Election Updates• imPACt Alerts — breaking political

news alerts• Political Updates with Members

of Congress• Pizza and Politics Events at the

Atlanta Store Support Center (SSC)

PAC Builders, those salaried associates who

give at or above the recommended level, receiveall the benefits outlined above, plus:

• PAC Builder Punchlist – an exclusive weekly legislative update

• PAC Polo Shirt

If you are not a PAC Builder, andare interested in increasing your

PAC contribution, please visitwww.HomeDepotPAC.com today.

Our PAC supports candidates who support issues that grow the top and bottomlines for The Home Depot. Your support of the PAC provides a true return on investment for our Company, our associates and our customers. The PAC is just one aspect of our government relations activities. In 2011, our legislative advocacy saved The Home Depot millions of dollars in annualized savings. The following federal, state and local victories imPACted all areas of our business.

More 2011 Victories

Northern DivisionIllinois

• Enacted e-Fairness legislation that will prevent online-only retailers, like Amazon.com, from having a competitive advantage over multi-channel retailers, like The Home Depot.

New York• Changed a Westchester County partial payment ordinance that would have impacted our Yonkers store

and cost it $750,000 per year.

Pennsylvania• Governor Tom Corbett (R) signed the partial pay reform bill that will save The Home Depot $6 million

per year. The reform allows customers to continue to pay for all the costs of their install project at the time of purchase rather than 30 percent up front and the balance upon completion.

Southern DivisionArkansas

• Governor Mike Beebe (D) signed an e-Fairness bill into law, which will help level the playing field between online-only retailers, like Amazon.com, and multi-channel retailers, like The Home Depot.

Florida• Passed legislation in Florida prohibiting city and county governments from passing individual

fertilizer bans.

Texas• Texas Governor Rick Perry (R) signed an e-Fairness bill into law which will help level the playing field

between online-only retailers and multi-channel retailers.• Preserved the Sales Tax Vendor Allowance, benefitting the Company $7 million.

Western DivisionCalifornia

• Defeated an employee mandate at the California ports that would have made it easier to unionize truck

drivers, which ultimately would have driven up the cost of getting products to our stores.

Colorado• Partially reinstated the Sales Tax Vendor Allowance in Colorado at 2.2 percent for two years, saving the

Company $1.9 million annually.

Top Photo: Congressman Tim Walberg (R-MI) models his Orange Apron from his tour of Store 2766in Coldwater, Michigan. Middle Photo: Associates atStore 4114 in Upper Darby, Pennsylvania greet Congressman Pat Meehan (R-PA) with handmadecampaign signs. Bottom Photo: The Home Depot PACTreasurer Ted Decker and Director of Finance AaronSurasky meet with Governor Haley Barbour (R-MS) in Georgia.

Legislativ

e Victo

ries

PAC Mem

ber Benefits

Top Left Photo: California State Senator Curren Price (D-CA) puts on his personalized Orange Apron, as he beginshis tour of Store 1061 in Ladera Heights, California. Top Right Photo: Congressman Randy Hultrgren (R-IL) meetsthe team on his visit to Store 1921 in Geneva, Illinois. Middle Left Photo: DM Bob Beachy assists Fire Chief SteveHrustich in cutting the board to officially re-open Store 1252 in Johnson City, New York, after the store was closeddue to severe damage during Tropical Storms Lee and Irene. Middle Right Photo: Congressman Gus Bilirakis (R-FL)learns about hurricane preparedness at Store 6311 in Tampa, Florida. Bottom Left Photo: This Florida-themed Orange Apron was presented to Congressman Daniel Webster (R-FL) during his visit to Store 6328 in South Chase,Florida. Bottom Right Photo: California State Senator Ed Hernandez (D-CA) meets with SM Mike Brossin and associates at Store 8463 in West Covina, California.

“I believe the PAC is important and that it is

our responsibility to educate all salaried

managers on the importance of the

legislative issues thatdirectly impact our

Company, stores andassociates each day.”

- Jason Culpepper,


and PAC Captain

“The Home Depot PAChas always been

important to me andthe entire Midwest

Region. The PAC is aneasy way to get

involved in the politicalprocess while helpingelect people who will

ensure there is a business-friendly

environment to run our stores and operate

our business.” - Dave Dawber,



Top Left Photo: Congressman Pat Meehan (R-PA) and SM Aaron Wyley meet with a customer during CongressmanMeehan’s visit to Store 4114 in Upper Darby, Pennsylvania. Top Right Photo: Governor Rick Scott (R-FL) kicks off hurricane season with a press conference at Store 6367 in Orlando, Florida. Bottom Left Photo: County Executive PatBrennan signs the ceremonial board at the re-opening of Store 1252 in Johnson City, New York, after the store wasclosed due to severe damage during Tropical Storms Lee and Irene. Bottom Right Photo: Congressman Randy Hultrgren (R-IL) learns about the Garden department during his tour of Store 1921 in Geneva, Illinois.

Board of DirectorsExecutive CommitteeKent Knutson, ChairVice President, Government Relations

Ted Decker, TreasurerSenior Vice President, Finance

Kelly Barrett, Assistant TreasurerVice President, Internal Audit

Atlanta Store Support CenterHuman Resources

Derek BottomsVice President, Employment Practices

Brant SuddathDirector, Benefits

LegalBriley BrisendineVice President, Legal

Corporate Communications and External AffairsTBD

Information ServicesDan PhillipsVice President, Information Services

Don MorrisDirector, Information Services

David SolomonAustin Tech CenterManager, Information Services

OperationsChris DuffyVice President, Labor Strategy

MerchandisingMarty GallagherVice President, Merchandising

Supply ChainTravis LawrenceSenior Director, HR Supply Chain

OnlineMike AmendVice President,Product Management and Site Operations

MarketingTBD

Northern DivisionCentralJim BejnaRegional Director, Human Resources

Northern PlainsBill LappinDistrict Manager

Ohio ValleyLloyd JarrellDirector, Talent Management

New EnglandBob LundyDistrict Manager

NY MetroColleen GeeDistrict Manager

NJ MetroTBD

MidwestDave DawberDistrict Manager

Mid-AtlanticVinny ScaleseRegional Vice President

Southern DivisionSouthwestSantiago BernardezRegional Vice President

South AtlanticHaydn ChilcottRegional Vice President

Mid-SouthJohn ChiassonRegional Director Operations

GulfRicky DezayasRegional Pro Sales Manager

SoutheastDavid HawkinsRegional Vice President

South FloridaJeff BeesingStore Manager

Western DivisionPacific NorthwestJeremy WallisDistrict Manager

Pac Mountain DesertTim PfeifferRegional Vice President

Pac NorthAnthony HurstRegional Vice President

Pac CentralJaime CastilloDistrict Manager

Pac SouthMike AstorinoDistrict Manager

2012 Legislative Initiatives• Stop the National Labor Relations Board (NLRB) from implementing pieces of the Employee

Free Choice Act (EFCA) through rules and regulations.

• Close the decades-old loophole that allows online-only retailers, like Amazon.com, to avoid

collecting sales tax, which puts multi-channel retailers, like The Home Depot, at a six to ten

percent pricing disadvantage.

• Support federal and state efforts to deepen the Port of Savannah in Georgia, which would

allow larger container ships to enter the Port, making it quicker and easier to deliver

products to our stores.

• Increase the weight trucks can carry, allowing the products we sell to reach our stores more

efficiently – benefitting both our bottom line and our environment.

• Create partnerships between store leadership and local governments to mitigate local day

labor issues.

• Enact Hurricane Preparedness and Energy Star Sales Tax Holidays to help our customers

save money and increase sales in our stores.

• Increase state and federal penalties for organized retail crime – particularly e-fencing and

copper/metal theft.

• Oppose new container fees and restriction on goods movement and the forced unionization

of truck drivers which would only increase the costs of getting product to our stores.

• Defeat product bans and reduce burdens on our store associates by preventing mandated

product take-back initiatives.

2012 Legislativ

e In

itiativ

es

Board of Directo

rs

“Thank you, it

seemed to go really

well. She was very

involved with the

customers and the

employees. She

loved the apron

and said she will

hang it in her

office. Thank you

for the opportunity.”

– Jeffery Morris,


in Titusville, Florida who hosted

Congresswoman Sandy Adams

In 2011, store associates hosted a total of 53 Congressional store walks across thecountry. Members of Congress from 24 different states and several local elected officials learned about The Home Depot from the perspective of Store Managers andtheir teams. Congressional store walks give elected officials a hands-on feel for how our business operates, which in turn helps us protect our business when legislation iswritten and passed.

While donning an Orange Apron, strolling through the store with groups of eager associates, and participating in high-spirited Home Depot cheers, elected officials havethe opportunity to discuss with their constituents issues that affect the stores every day.The Home Depot experienced two major legislative victories with the help of our storewalk program and widespread grassroots and government relations efforts. Store associates discussed the importance of lowering interchange, or swipe, fees that arecharged every time a customer uses a debit or credit card; this summer, Congress votedto limit those fees. Also, associates asked their officials to level the playing field betweenbrick-and-mortar and online-only retailers by requiring all retailers to charge the salestax that is owed on any purchase. To date, 16 states have acted on e-Fairness.

In addition to helping to protect our business, store walks present associates with an opportunity to host elected officials who have connections to The Home Depot and whotake their store walk experience a step further. Associates from Store 3401 in Londonderry, New Hampshire hosted Congressman Frank Guinta (R-NH) in July. Congressman Guinta, a former D25 part-time associate, visited the store 15 years afterworking at Store 2670 in Quincy, Massachusetts, while saving money to buy his wife her engagement ring. He complimented Store Manager Dave Dardas and his team on upholding the company-wide value of “Putting Customers First,” noting that he learnedthat same value over a decade ago. Associates from Store 1301 in Anchorage, Alaska welcomed Senator Mark Begich (D-AK), who posted about his store experience on Facebook saying, “Had a great meeting with the folks at the Tudor Home Depot in Anchorage. I get my best ideas and feedback from the working men and women of ourgreat state.”

Store walks are fun opportunities for associates and their Store Managers to share with their elected officials the great work that The Home Depot does for its customers and communities.

Congressional Store Walks Make a Difference

To host a Congressional store walk in your store, contact Sarah Sobecki at [email protected] or 202-393-4454.

Dear PAC Donors,

Thank you for supporting The Home Depot Political Action Committee (PAC), aswell as our grassroots and legislative efforts in 2011. With your commitment toour PAC and to OrangeVoice, we made quite an imPACt in 2011:

1,360,000 dollars raised

1,100,000 dollars disbursed

53,000 grassroots letters sent to elected officials

11,241 politically engaged associates

53 store walks hosted

These are powerful statistics. As you read through this Annual Report, youshould be proud of the imPACt you had on the political process.

My challenge to you in 2012 is simple:

Get involved. Be heard. Make a difference.

Whether you decide to increase your PAC contribution, write a letter to yourCongressman or vote in the 2012 Presidential Election, you can have an imPACt on both the future of our Company and our country.

Thank you for your continued support of The Home Depot PAC and for usingyour OrangeVoice to make a difference. We look forward to working with you in the year ahead.

Kent KnutsonChair, The Home Depot PAC

Top Photo: Michigan State Representative LisaPosthumus Lyons (R-MI) gets a tour of the paintdepartment during her visit to Store 2270 inWalker, Michigan. Middle Photo: CongresswomanSandy Adams (R-FL) learns about countertop solutions during her visit to Store 6871 in Titusville, Florida. Bottom Photo:Congresswoman Diane Black (R-TN) meets with the management team at Store 0735 inHendersonville, Tennessee.

Welcom

e Lette

r

Sto

re w

alks

Top Left Photo: California General Assembly Member Fiona Ma (D-CA) gets a tour of Store 0639 in Colma, California. Top Middle Photo: Congressman Jim Cooper (D-TN) gets an Orange Apron during his visit to Store 0772 in Bellevue, Tennessee. Top Right Photo: Congressman Jon Runyan (R-NJ) is presented with a The Home Depot PAC-themed Orange Apron by SM Kathryn Caulfield onhis visit to Store 0920 in Toms River, New Jersey. Bottom Left Photo: Congressman Ben Quayle (R-AZ) hears from associates at Store 0486 in Phoenix, Arizona. Bottom Right Photo:Congressman Jim Matheson (D-UT) receives a tour from associates at Store 4403 in Salt Lake City,Utah.

Mission Statement

The Home Depot

Political Action

Committee

supports candidates

for public office

who advocate

policies that

promote a

favorable business

climate for the

growth and

profitability of

The Home Depot.

“Overall, it was a great opportunity for Fiona Ma to seefirsthand what our store is notonly doing to help support ourcommunity, but also how ourstore is playing an integral part in creating and offering new andinnovative solutions that not onlybenefit the customer, but benefitthe environment as well.”– David Fogg, Operations Manager, Store 639 in Colma, California who hosted Assemblywoman Fiona Ma

Top Left Photo: The Orange Apron presented to Congressman Cory Gardner (R-CO) during his visit to Store 1521 in Longmont, Colorado. Top Middle Photo: Congressman Cory Gardner (R-CO) gets a tour from ASM Chanel Kesler and other associates at Store 1521 in Longmont, Colorado. Top Right Photo: Congressman Mick Mulvaney (R-SC) learns about DeWalt tools from associates at Store 1114 in Rock Hill, South Carolina.

“He stated he would love to workfor us here at the CommerceHome Depot. Thanks again forthe opportunity to showcaseStore 0654…and we ended withThe Home Depot Cheer!!” – Sal Prieto, Store Manager, Store 0654in Commerce, California who hosted Assemblyman Ricardo LaraLeft Photo: Congressman Michael Grimm (R-NY) meets with SM Lora Isolano and associates during his tour of Store 6150 in

Staten Island, New York. Middle Photo: Congressman Mo Brooks (R-AL) meets with associates at Store 0803 in Huntsville, Alabama. Right Photo: Congressman Todd Young (R-IN) gets help learning The Home Depot Cheer from Sales Specialist JakeStewart, at store 2002 in Clarksville, Indiana.

Sto

re w

alks

California GeneralAssembly Member

Ricardo Lara (D-CA) is

presented with a framed

Orange Apron,commemorating

his visit to Store 0654

in Commerce, California.

Photos on front cover: Top Left Photo: Former Home Depot associate, Congressman Frank Guinta (R-NH), poses with SM Dave Dardas and DM Gene Kelly during his visit to Store 3401 in Londonderry, New Hampshire. Top Middle Photo: Congresswoman Jackie Speier (D-CA) cuts a key during her "Day in the Life of a Home Depot Associate" at Store 0632 in San Mateo, California. Top Right Photo: Senator Mark Begich (D-AK)receives a tour of Store 1301 in Anchorage, Alaska from SM Jason DeJardin. Bottom Right Photo: US House Majority Leader Eric Cantor (R-VA) ispresented with his own Orange Apron by CEO Frank Blake and VP of Government Relations Kent Knutson, during his visit to the SSC.

2011ANNUAL REPORT

Contributions to The Home Depot PAC are not tax deductible. Contributions are voluntary and will be used for political purposes. You have the right to refuse to contribute without any reprisal.

The Home Depot Political Action Committee1155 F Street NW, Suite 400Washington, DC 20004

For more information:Phone: 202.393.4400 | Fax: 202.393.4414

Email: [email protected]

2011 annual report - nabpac...hrustich in cutting the board to officially re-open store 1252 in...

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