Home Depot 2007 Annual Report Download - page 65

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The Company's Long-Term Debt at the end of fiscal 2007 and 2006 consisted of the following (amounts in millions):
At February 3, 2008, the Company had outstanding interest rate swaps, accounted for as fair value hedges, with notional amounts of $2.0 billion
that swap fixed rate interest on the Company's $3.0 billion 5.40% Senior Notes for variable rate interest equal to LIBOR plus 60 to 149 basis
points that expire on March 1, 2016. At February 3, 2008, the approximate fair value of these agreements was an asset of $29 million, which is
the estimated amount the Company would have received to settle similar interest rate swap agreements at current interest rates.
At February 3, 2008, the Company had outstanding an interest rate swap, accounted for as a cash flow hedge, with a notional amount of
$750 million that swaps variable rate interest on the Company's $750 million floating rate Senior Notes for fixed rate interest at 4.36% that
expires on December 16, 2009. At February 3, 2008, the approximate fair value of this agreement was a liability of $17 million, which is the
estimated amount the Company would have paid to settle similar interest rate swap agreements at current interest rates.
In December 2006, the Company issued $750 million of floating rate Senior Notes due December 16, 2009 at par value, $1.25 billion of 5.25%
Senior Notes due December 16, 2013 at a discount of $7 million and $3.0 billion of 5.875% Senior Notes due December 16, 2036 at a discount
of $42 million, together the "December 2006 Issuance." The net proceeds of the December 2006 Issuance were used to fund, in part, the
Company's common stock repurchases, to repay outstanding commercial paper and for general corporate purposes. The $49 million discount and
$37 million of issuance costs associated with the December 2006 Issuance are being amortized to interest expense over the term of the related
Senior Notes.
Additionally in October 2006, the Company entered into a forward starting interest rate swap agreement with a notional amount of $1.0 billion,
accounted for as a cash flow hedge, to hedge interest
48
February 3,
2008
January 28,
2007
3.75% Senior Notes; due September 15, 2009; interest
payable semi
-
annually on March 15 and September 15
$
998
$
997
Floating Rate Senior Notes; due December 16, 2009;
interest payable on March 16, June 16, September 16
and December 16
750
750
4.625% Senior Notes; due August 15, 2010; interest
payable semi
-
annually on February 15 and August 15
998
997
5.20% Senior Notes; due March 1, 2011; interest
payable semi
-
annually on March 1 and September 1
1,000
1,000
5.25% Senior Notes; due December 16, 2013; interest
payable semi
-
annually on June 16 and December 16
1,244
1,243
5.40% Senior Notes; due March 1, 2016; interest
payable semi
-
annually on March 1 and September 1
3,017
2,986
5.875% Senior Notes; due December 16, 2036; interest
payable semi
-
annually on June 16 and December 16
2,959
2,958
Capital Lease Obligations; payable in varying
installments through January 31, 2055
415
419
Other
302
311
Total Long
-
Term Debt
11,683
11,661
Less current installments
300
18
Long
-
Term Debt, excluding current installments
$
11,383
$
11,643