Home Depot 2005 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2005 Home Depot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

Foreign Currency Translation
Assets and Liabilities denominated in a foreign currency are translated into U.S. dollars at the current
rate of exchange on the last day of the reporting period. Revenues and Expenses are generally
translated at a daily exchange rate and equity transactions are translated using the actual rate on the
day of the transaction.
Segment Information
The Company operates within a single operating segment within North America. Net Sales for Canada
and Mexico were $5.3 billion, $4.2 billion and $3.4 billion during fiscal 2005, 2004 and 2003,
respectively. Long-lived assets in Canada and Mexico totaled $2.2 billion and $1.7 billion as of
January 29, 2006 and January 30, 2005, respectively.
Reclassifications
Certain amounts in prior fiscal years have been reclassified to conform with the presentation adopted
in the current fiscal year.
2. INTANGIBLE ASSETS
The Company’s intangible assets at the end of fiscal 2005 and fiscal 2004, which are included in Other
Assets in the accompanying Consolidated Balance Sheets, consisted of the following (amounts in
millions):
January 29, January 30,
2006 2005
Customer relationships $283 $10
Trademarks and franchises 92 2
Other 58 13
Less accumulated amortization (35) (7)
Total $398 $18
Amortization expense related to intangible assets was $29 million and $4 million for fiscal 2005 and
fiscal 2004, respectively. Estimated future amortization expense for intangible assets recorded as of
January 29, 2006 is $60 million, $59 million, $55 million, $52 million and $48 million for fiscal 2006
through fiscal 2010, respectively.
3. DEBT
As of January 29, 2006, the Company had $900 million of Short-Term Debt outstanding under its
commercial paper program. In the fourth quarter of fiscal 2005, the Company increased the maximum
capacity for borrowing under its commercial paper program to $2.5 billion as well as increased the
related back-up credit facility with a consortium of banks to $2.0 billion. Since the initial borrowing on
January 17, 2006, the maximum amount outstanding under the commercial paper program was
$900 million and the weighted average interest rate was 4.3%. The credit facility, which expires in
December 2010, contains various restrictions, none of which is expected to materially impact the
Company’s liquidity or capital resources.
47