Home Depot 2010 Annual Report Download - page 49

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5. DEBT
The Company has commercial paper programs that allow for borrowings up to $2.0 billion. All of the Company’s
short-term borrowings in fiscal 2010 and 2009 were under these commercial paper programs. In connection with
the commercial paper programs, the Company has a back-up credit facility with a consortium of banks for
borrowings up to $2.0 billion. The credit facility expires in July 2013 and contains various restrictive covenants.
At January 30, 2011, the Company was in compliance with all of the covenants, and they are not expected to
impact the Company’s liquidity or capital resources.
Short-Term Debt under the commercial paper programs was as follows (amounts in millions):
January 30,
2011 January 31,
2010
Balance outstanding at fiscal year-end $— $—
Maximum amount outstanding at any month-end $— $190
Average daily short-term borrowings $5 $55
Weighted average interest rate 0.4% 1.1%
The Company’s Long-Term Debt at the end of fiscal 2010 and 2009 consisted of the following (amounts in
millions):
January 30,
2011 January 31,
2010
4.625% Senior Notes; due August 15, 2010; interest payable semi-annually on
February 15 and August 15 $— $ 999
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 1,297 1,258
5.40% Senior Notes; due March 1, 2016; interest payable semi-annually on
March 1 and September 1 3,033 3,040
3.95% Senior Notes; due September 15, 2020; interest payable semi-annually on
March 15 and September 15 499 —
5.875% Senior Notes; due December 16, 2036; interest payable semi-annually on
June 16 and December 16 2,960 2,960
5.40% Senior Notes; due September 15, 2040; interest payable semi-annually on
March 15 and September 15 499 —
Capital Lease Obligations; payable in varying installments through January 31,
2055 452 408
Other 917
Total debt 9,749 9,682
Less current installments 1,042 1,020
Long-Term Debt, excluding current installments $8,707 $8,662
At January 30, 2011, the Company had outstanding interest rate swaps, accounted for as fair value hedges, that
expire on December 16, 2013 with a notional amount of $1.25 billion that swap fixed rate interest on the
Company’s $1.25 billion 5.25% Senior Notes for variable interest equal to LIBOR plus 259 basis points. At
January 30, 2011, the approximate fair value of these agreements was an asset of $47 million, which is the
estimated amount the Company would have received to settle the agreements and is included in Other Assets in
the accompanying Consolidated Balance Sheets.
In May 2010, the Company entered into a forward starting interest rate swap agreement with a notional amount of
$500 million, accounted for as a cash flow hedge, to hedge interest rate fluctuations in anticipation of issuing long-
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