Home Depot 2005 Annual Report Download - page 70

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12. SUBSEQUENT EVENTS
On March 24, 2006, the Company issued $1.0 billion of 5.20% Senior Notes due March 1, 2011 at a
discount of $1 million and $3.0 billion of 5.40% Senior Notes due March 1, 2016 at a discount of
$15 million. Interest on these senior notes is due semi-annually on March 1 and September 1, of each
year.
Additionally in March 2006, the Company entered into forward starting interest rate swap agreements
with a notional amount of $2.0 billion accounted for as a cash flow hedge to hedge interest rate
fluctuations in anticipation of the issuance of the 5.40% Senior Notes due March 1, 2016. Upon
issuance of the 5.40% Senior Notes due March 1, 2016, the Company settled its forward starting
interest rate swap agreements and recorded a $19 million decrease to Accumulated Other
Comprehensive Income, which will be amortized to interest expense over the life of the 5.40% Senior
Notes due March 1, 2016.
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