Home Depot 2011 Annual Report Download - page 28

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have repurchased 931 million shares of our common stock for a total of $33.6 billion. As of January 29, 2012, $6.4 billion
remained under our share repurchase authorization.
In May 2010, we entered into a forward starting interest rate swap agreement with a notional amount of $500 million, which
was accounted for as a cash flow hedge, to hedge interest rate fluctuations in anticipation of the March 2011 issuance. Upon
the March 2011 issuance, we settled this forward starting interest rate swap agreement for an immaterial amount.
We have commercial paper programs that allow for borrowings up to $2.0 billion. In connection with the programs, we have
a back-up credit facility with a consortium of banks for borrowings up to $2.0 billion. As of January 29, 2012, there were no
borrowings outstanding under the commercial paper programs or the related credit facility. The credit facility expires in July
2013 and contains various restrictive covenants. As of January 29, 2012, we were in compliance with all of the covenants,
and they are not expected to impact our liquidity or capital resources.
We use capital and operating leases to finance a portion of our real estate, including our stores, distribution centers and store
support centers. The net present value of capital lease obligations is reflected in our Consolidated Balance Sheets in Long-
Term Debt and Current Installments of Long-Term Debt. In accordance with generally accepted accounting principles, the
operating leases are not reflected in our Consolidated Balance Sheets.
As of January 29, 2012, we guaranteed a $1.0 billion senior secured amortizing term loan in connection with the sale of HD
Supply. We are responsible for up to $1.0 billion and any unpaid interest in the event of nonpayment by HD Supply. As
reported in the quarterly report on Form 10-Q of HD Supply for the period ended October 30, 2011, the outstanding balance
of this term loan as of October 30, 2011 was $930 million. The guaranteed loan is collateralized by certain assets of HD
Supply. The original expiration date of the guarantee was August 30, 2012. On March 19, 2010, we amended the guarantee to
extend the expiration date to April 1, 2014. The fair value of the guarantee at August 30, 2007 was $16 million and was
recorded as a liability in Other Long-Term Liabilities. The extension of the guarantee increased the fair value of the guarantee
to $67 million, resulting in a $51 million charge to Interest and Other, net, for fiscal 2010.
As of January 29, 2012, we had $2.0 billion in Cash and Cash Equivalents. We believe that our current cash position, access
to the debt capital markets and cash flow generated from operations should be sufficient to enable us to complete our capital
expenditure programs and fund dividend payments, share repurchases and any required long-term debt payments through the
next several fiscal years. In addition, we have funds available from our commercial paper programs and the ability to obtain
alternative sources of financing.
In March 2011, we entered into an interest rate swap that expires on March 1, 2016, with a notional amount of $500 million,
accounted for as a fair value hedge, that swaps fixed rate interest on our 5.40% Senior Notes due March 1, 2016 for variable
interest equal to LIBOR plus 300 basis points. At January 29, 2012, the approximate fair value of this agreement was an asset
of $39 million, which is the estimated amount we would have received to settle the agreement.
Also at January 29, 2012, we 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 our $1.25 billion 5.25% Senior
Notes due December 16, 2013 for variable interest equal to LIBOR plus 259 basis points. At January 29, 2012, the
approximate fair value of these agreements was an asset of $52 million, which is the estimated amount we would have
received to settle the agreements.
In March 2012, we entered into an ASR agreement with a third-party financial institution to repurchase $1.0 billion of our
common stock. Under the agreement, we paid $1.0 billion to the financial institution, using cash on hand, and received an
initial delivery of approximately 17 million shares in the first quarter of fiscal 2012. The final number of shares delivered
upon settlement of the agreement will be determined with reference to the average price of our common stock over the term
of the ASR agreement.