The Home Depot giving $1K bonuses to hourly workers; credits tax reform package
Atlanta-based The Home Depot announced Thursday it is providing a one-time cash bonus for U.S. hourly associates of up to $1,000, thanks to the newly passed tax reform package.
The bonus will be paid in addition to the company's 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 Home Depot is the latest company to announce bonuses and raises in the wake of the tax reform package, which was championed by President Donald Trump but drew partisan opposition from almost every Congressional Democrat.
The home improvement retailer said the new tax law will result in added tax expenses of about $150 million in the fourth quarter, which are tied to taxes on offshore earnings. These expenses and the bonus payments will lower Home Depot's fiscal 2017 earnings by 19 cents a share, the company said.
For fiscal 2018, Home Depot is still evaluating the legislation's impact on its business, but said it should be "beneficial."
"Amid the changing retail environment," Home Depot said it plans to make more investments in its stores, workers and the customer shopping experience.
CNBC also contributed to this report.