Home Depot 2012 Annual Report Download - page 47

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5. DEBT
The Company has commercial paper programs that allow for borrowings up to $2.0 billion. In connection with the 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 2017 and contains various restrictive covenants. At February 3, 2013, the Company was in compliance with
all of the covenants, and they are not expected to impact the Company’s liquidity or capital resources.
There were no borrowings under the commercial paper programs or the related credit facility in fiscal 2012. As of January 29,
2012, there were no borrowings outstanding under the commercial paper programs or the related credit facility. All of the
Company’s short-term borrowings in fiscal 2011 were under these commercial paper programs. For the fiscal year ended
January 29, 2012, the maximum amount outstanding at any month-end was $828 million, the average daily short-term
borrowings were $44 million and the weighted average interest rate was 0.5%.
The Company’s Long-Term Debt at the end of fiscal 2012 and 2011 consisted of the following (amounts in millions):
February 3,
2013 January 29, 2012
5.25% Senior Notes; due December 16, 2013; interest payable semi-annually on
June 16 and December 16 $ 1,286 $ 1,309
5.40% Senior Notes; due March 1, 2016; interest payable semi-annually on
March 1 and September 1 3,058 3,069
3.95% Senior Notes; due September 15, 2020; interest payable semi-annually on
March 15 and September 15 499 499
4.40% Senior Notes; due April 1, 2021; interest payable semi-annually on
April 1 and October 1 998 998
5.875% Senior Notes; due December 16, 2036; interest payable semi-annually on
June 16 and December 16 2,962 2,961
5.40% Senior Notes; due September 15, 2040; interest payable semi-annually on
March 15 and September 15 499 499
5.95% Senior Notes; due April 1, 2041; interest payable semi-annually on
April 1 and October 1 996 996
Capital Lease Obligations; payable in varying installments through January 31, 2055 492 449
Other 68
Total debt 10,796 10,788
Less current installments 1,321 30
Long-Term Debt, excluding current installments $ 9,475 $ 10,758
In March 2011, the Company 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 the Company's 5.40% Senior Notes due
March 1, 2016 for variable interest equal to LIBOR plus 300 basis points. At February 3, 2013, the approximate fair value of
this agreement was an asset of $36 million, which is the estimated amount the Company would have received to settle the
agreement and is included in Other Assets in the accompanying Consolidated Balance Sheets.
Also at February 3, 2013, 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 due December 16, 2013 for variable interest equal to LIBOR plus 259 basis points. At February 3, 2013,
the approximate fair value of these agreements was an asset of $28 million, which is the estimated amount the Company
would have received to settle the agreements and is included in Other Current Assets in the accompanying Consolidated
Balance Sheets.
In March 2011, the Company issued $1.0 billion of 4.40% Senior Notes due April 1, 2021 at a discount of $2 million and
$1.0 billion of 5.95% Senior Notes due April 1, 2041 at a discount of $4 million (together, the "March 2011 issuance").
Interest on these Senior Notes is due semi-annually on April 1 and October 1 of each year, beginning October 1, 2011. The
net proceeds of the March 2011 issuance were used to repurchase $1.0 billion of the Company’s common stock through an
Accelerated Share Repurchase ("ASR") agreement, and the balance of the net proceeds was used to repay the Company’s
5.20% Senior Notes that matured March 1, 2011 in the aggregate principal amount of $1.0 billion. The $6 million discount