Home Depot To Pay One-time Cash Bonus To U.S. Hourly Associates In Q4

(RTTNews) - Home Depot Inc. (HD) said it 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.

Home Depot also said it currently estimates that the impact of the Tax Cuts and Jobs Act of 2017 will result in additional net tax expense of about $150 million in the fourth quarter of fiscal 2017 primarily related to taxes on unremitted offshore earnings.

The company expects this charge, coupled with the one-time bonus payment, to negatively impact its previously provided fiscal 2017 earnings per share guidance by about $0.19.

In early December, Home Depot had said it expects fiscal 2017 sales to increase approximately 6.3 percent for the year, with comparable store sales of approximately 6.5 percent. The company also said it expects fiscal 2017 earnings per share to grow approximately 14 percent to $7.36.

For fiscal 2018, Home Depot 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.

The company will provide full-year guidance for fiscal 2018 on its fourth quarter and fiscal 2017 earnings call on February 20, 2018.