Home Depot 2014 Annual Report Download - page 30

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variable interest equal to LIBOR plus 300 basis points. At February 1, 2015, the approximate fair value of this agreement was
an asset of $19 million, which is the estimated amount we would have received to settle the agreement and is included in
Other Assets in the accompanying Consolidated Balance Sheets.
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. In December 2014, we replaced our
back-up credit facility, which was scheduled to expire in July 2017, with a new, substantially identical $2.0 billion credit
facility. The new credit facility expires in December 2019 and contains various restrictive covenants. At February 1, 2015, we
were in compliance with all of the covenants, and they are not expected to impact our liquidity or capital resources. At
February 1, 2015, there were $290 million of borrowings outstanding under the commercial paper programs and no
borrowings outstanding under the related credit facility. See Note 4 to our Consolidated Financial Statements for further
discussion of our commercial paper programs and related credit facility.
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.
In connection with the sale of HD Supply, Inc. on August 30, 2007, we guaranteed a $1.0 billion senior secured amortizing
term loan of HD Supply, Inc. The original expiration date of the guarantee was August 30, 2012. In March 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. In April 2012, the
term loan guarantee was terminated. As a result, we reversed the $67 million liability related to the guarantee, resulting in a
$67 million pretax benefit to Interest and Other, net, for fiscal 2012.
As of February 1, 2015, we had $1.7 billion in Cash and Cash Equivalents. We believe that our current cash position, access
to the long-term debt capital markets and cash flow generated from operations should be sufficient not only for our operating
requirements but also to enable us to complete our capital expenditure programs and fund dividend payments, share
repurchases, obligations incurred as a result of the Data Breach 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 2015, we entered into an ASR agreement with a third-party financial institution to repurchase $850 million of our
common stock. Under the agreement, we paid $850 million to the financial institution and received an initial delivery of
approximately 7 million shares in the first quarter of fiscal 2015. 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.
Off-Balance Sheet Arrangements
In accordance with generally accepted accounting principles, operating leases for a portion of our real estate and other assets
are not reflected in our Consolidated Balance Sheets.