Home Depot 2008 Annual Report Download - page 47

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Additionally, if a Change in Control Triggering Event occurs, as defined by the terms of the Floating Rate Senior Notes
and 5.25% Senior Notes issuance (together the “December 2006 Issuance”), holders of the December 2006 Issuance have
the right to require the Company to redeem those notes at 101% of the aggregate principal amount of the notes plus
accrued interest up to the redemption date.
The Company is generally not limited under the indentures governing the Senior Notes in its ability to incur additional
indebtedness or required to maintain financial ratios or specified levels of net worth or liquidity. However, the indenture
governing the Senior Notes contains various restrictive covenants, none of which is expected to impact the Company’s
liquidity or capital resources.
Interest Expense in the accompanying Consolidated Statements of Earnings is net of interest capitalized of $20 million,
$46 million and $47 million in fiscal 2008, 2007 and 2006, respectively. Maturities of Long-Term Debt are $1.8 billion
for fiscal 2009, $1.0 billion for fiscal 2010, $1.0 billion for fiscal 2011, $24 million for fiscal 2012, $1.3 billion for fiscal
2013 and $6.3 billion thereafter. As of February 1, 2009, the market value of the Senior Notes was approximately
$10.0 billion.
7. INCOME TAXES
The components of Earnings from Continuing Operations before Provision for Income Taxes for fiscal 2008, 2007 and
2006 were as follows (amounts in millions):
February 1,
2009 February 3,
2008 January 28,
2007
Fiscal Year Ended
United States $3,136 $5,905 $7,915
Foreign 454 715 587
Total $3,590 $6,620 $8,502
The Provision for Income Taxes consisted of the following (amounts in millions):
February 1,
2009 February 3,
2008 January 28,
2007
Fiscal Year Ended
Current:
Federal $1,283 $2,055 $2,557
State 198 285 361
Foreign 85 310 326
1,566 2,650 3,244
Deferred:
Federal (209) (242) (2)
State (56) 17 (1)
Foreign (23) (15) (5)
(288) (240) (8)
Total $1,278 $2,410 $3,236
The Company’s combined federal, state and foreign effective tax rates for fiscal 2008, 2007 and 2006, net of offsets
generated by federal, state and foreign tax benefits, were approximately 35.6%, 36.4% and 38.1%, respectively.
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