Home Depot 2007 Annual Report Download - page 42

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The following table summarizes our significant contractual obligations as of February 3, 2008 (amounts in millions):
(1)
Payments Due by Fiscal Year
Contractual Obligations
Total
2008
2009
-
2010
2011
-
2012
Thereafter
Total Debt
(1)
$
20,391
$
2,601
$
3,824
$
1,842
$
12,124
Capital Lease Obligations
(2)
1,287
79
162
164
882
Operating Leases
8,931
802
1,360
1,105
5,664
Purchase Obligations
(3)
4,654
1,715
1,343
794
802
FIN 48 Unrecognized Tax Benefits
(4)
6
6
—
—
—
Total
$
35,269
$
5,203
$
6,689
$
3,905
$
19,472
Excludes present value of capital lease obligations of $415 million. Includes $7.0 billion of interest payments and $65 million of
unamortized discount.
(2)
Includes $872 million of imputed interest.
(3)
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.
(4)
Excludes $602 million of noncurrent unrecognized tax benefits due to uncertainty regarding the timing of future cash payments related to
the FIN 48 liabilities.
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 February 3, 2008 we had, net of discounts, $11.0 billion of Senior Notes outstanding. The market values of the publicly traded Senior
Notes as of February 3, 2008, were approximately $10.5 billion.
Impact of Inflation, Deflation and Changing Prices
We have experienced inflation and deflation related to our purchase of certain commodity products. We do not believe that changing prices for
commodities have had a material effect on our Net Sales or results of operations. Although we cannot precisely determine the overall effect of
inflation and deflation on operations, we do not believe inflation and deflation have had a material effect on our results of operations.
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