Home Depot 2005 Annual Report Download - page 42

The following table summarizes our significant contractual obligations and commercial commitments as
of January 29, 2006 (amounts in millions):
Payments Due by Fiscal Year
Contractual Obligations(1) Total 2006 2007-2008 2009-2010 Thereafter
Total Debt(2) $ 4,192 $1,521 $ 500 $2,143 $ 28
Capital Lease Obligations(3) 1,248 72 145 147 884
Operating Leases 8,449 706 1,287 1,093 5,363
Subtotal $13,889 $2,299 $1,932 $3,383 $6,275
Amount of Commitment Expiration per Fiscal Year
Commercial Commitments(4) Total 2006 2007-2008 2009-2010 Thereafter
Letters of Credit $ 1,292 $1,257 $ 35 $ — $ —
Purchase Obligations(5) 2,315 946 1,067 302 —
Subtotal 3,607 2,203 1,102 302 —
Total $17,496 $4,502 $3,034 $3,685 $6,275
(1) Contractual obligations include Short-Term Debt, Long-Term Debt comprised primarily of $2.5 billion
of Senior Notes further discussed in ‘‘Quantitative and Qualitative Disclosures about Market Risk’’ and
future minimum lease payments under capital and operating leases used in the normal course of
business. The amounts listed do not include aggregate consideration of $3.5 billion related to our
pending acquisition of Hughes Supply, expected to close in the first quarter of fiscal 2006 or any debt
issued subsequent to the end of fiscal 2005.
(2) Excludes present value of capital lease obligations of $381 million. Includes $479 million of interest
payments and $8 million of unamortized discount.
(3) Includes $867 million of imputed interest.
(4) Commercial commitments include letters of credit from certain business transactions, purchase
obligations and commitments to purchase store assets. We issue letters of credit for insurance programs,
purchases of import merchandise inventories and construction contracts. Our purchase obligations
consist of commitments for both merchandise and services.
(5) Purchase obligations include all legally binding contracts such as firm commitments for inventory
purchases, utility purchases, capital expenditures, software acquisition and license commitments and
legally binding service contracts. Purchase orders that are not binding agreements are excluded from the
table above. Additionally, we have included a commitment to purchase the underlying asset under an
off-balance sheet lease related to certain stores for $282 million during 2008.
Quantitative and Qualitative Disclosures about Market Risk
Our exposure to market risk results primarily from fluctuations in interest rates. Although we have
international operating entities, our exposure to foreign currency rate fluctuations is not significant to
our financial condition and results of operations. Our primary objective for entering into derivative
instruments is to manage our exposure to interest rates, as well as to maintain an appropriate mix of
fixed and variable rate debt.
As of January 29, 2006 we had, net of discounts, $996 million of 45⁄8% Senior Notes, $996 million of
33⁄4% Senior Notes and $500 million of 53⁄8% Senior Notes outstanding. The market values of the
publicly traded 45⁄8%, 33⁄4% and 53⁄8% Senior Notes as of January 29, 2006, were approximately
$985 million, $976 million and $500 million, respectively. We have several outstanding interest rate
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