1. Identify Home Depot's long-term liabilities and the amounts for those liabilities from Home Depot's balance sheet at January 29, 2017 2. Review Home Depot's note 4. The note reports that as of January 29, 2017, it had $2.947 billion of 5.875% Senior Notes; due December 16, 2036; interest payable semiannually on June 16 and December 16." These notes have a face value of $3.0 billion and were originally issued at $2.958 billion. a. Why would Home Depot issue $3.0 billion of its notes for only $2.958 billion? b. How much cash interest must Home Depot pay each June 16 and December 16 on these notes? 2.538 2,029 12.549 17.724 40.426 18.512 21.914 2,093 2,216 1.890 11.09 160 16.484 19.260 19.095 22.191 2,102 11 41.973 42,96 710 7.000 1,484 350 6.365 we AR Cashid Cash Equivalent Receivables, et Merchandise hverton Other Current Assets Total Current Act Property and Equipment, al cost Les Depreciation and Amolition Net Property and Equipment Goodwill Ole Ant Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Short-Tembe Accounts Payable Accrued Salaries and Related premte Sales The Deferred Revenue Income Tax Payable Current Italim of Long Term Debit Other Accred Expenses Total Current Lili Lang.TenDendlingen Cale Long Tum Lai Deferred Tee Talib STOCKHOLDERS' EQUITY Common Sud, per value 50.00 horiet to billion sharest 1776 bilen har try 29, 2017 and 1.772 billion tres et sy 31, 2016 ottending 1.203 billion here at Juny 29, 2017 and 1.252 Wilon shares tary 31, 2016 Poids Capital Hinding Accumulated Other Compave Lom Trey Stock, count, 873 million stures at Jury 29, 2017 and $20 million shares at wy 31, 2016 Tool Stockholders Equity Total Liabilities and Stockholders' Equity 149 25 543 2,195 14.13 22349 34 71 1,941 12,334 20,79 1,96 379 1657 296 3841 EN 9.787 15.519 (67) (40,194) 4.000 42.966 9.847 0,973 (893) (33,19) 6.16 41,973 1,151 1.156 509 524 996 1,341 1.241 1.240 996 995 1,091 994 993 March 10 and September 10 2.00% Senior Notes de June 15, 2019, interest payable manually on June 15 and December 15 3.98% Setor Notes de September 15, 2006, interest payable semi-amully March 15 and September 15 4 40% Senior Notes de April 1, 2021; interest payable semi-annually on April 1 and October 2.00% Senior Notes da April 1, 2021; interesi payable semi-animally on Aprill and October 2.625% Senior Notes: due June 1, 2002, interest payable semi-annually on JuneI and December 2.70% Senior Notes de April 1, 2023, Interest payahle semiannually April 1 and October 3.75% Setiot Notes, dise February 15, 2004, interest payable reminully on February 15 and August 19 3.35% Senior Notes de September 15, 2025, interest payable small March 15 and September 15 3.00% Senior Notes de April 1, 2036, interest payable semiannually April 1 and October 2.125% Senice Notes due September 15, 2006, interest payable semi-anmally on March 15 und September 15 5.875% Senior Notes: dur December 16, 2036; interest payable manually on June 16 and December 16 540% Senior Notes, due September 15, 2040, interest payable semi-annually on March 15 and September 15 5.98% Senior Notes de April 1, 2001; interest payable semiannually on Aprill and October 4.20% Senior Noter, die April 1, 2043, interest payable semilyen Aprill and October 1 4x75% Senior Notes; due February 15, 2014; interest payable semi-annually on February 15 and August 15 4 40% Senior Notes dae March 15, 2015 inerent payable seminually on March 15 and September 15 4.25% Seniot Notes due April 1, 2046, interest payable semi-antally on April 1 and October 3.50% Senior Notes de September 15, 206, interest payable manually on March 15 and September 15 Capital Lease Obligations payable in varying installments through January 31, 2055 Other Total de Less current installments Long-Term Debt, excluding current installments 1.286 984 2,947 2.946 495 495 988 9R 988 978 987 977 976 976 1.584 1.235 971 878 763 22.891 20.866 77 22,349 20,789 January 31. Dela 2012 2.53 $ 2.216 1.890 12.549 11.809 569 17,724 16,484 40.426 39.266 17.075 IR.512 21.914 2,093 2,102 1.2.18 1.1946 42,966 41.973 710 350 7,000 6,565 1.484 1,515 476 amounts in millions, except share and per share data ASSETS Current Assets: Cash and Cash Equivalents Receivables, net Merchandise Inventories Other Current Assets Total Current Assets Property and Equipment, at cost Less Accumulated Depreciation and Amortization Net Property and Equipment Goodwill Other Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Short-Term Debt Accounts Payable Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Total Current Liabilities Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Income Taxes Total Liabilities STOCKHOLDERS' EQUITY Common Stock, par value 0.05; authorized: 10 billion shares: issued: 1.776 billion shares at January 29, 2017 and 1.772 billion shares at January 31, 2016; outstanding: 1.203 billion shares at January 29, 2017 and 1.252 billion shares at January 31, 2016 Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock, at cost, 573 million shares at January 29, 2017 and 520 million shares at January 31, 2016 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1.669 1,566 25 542 77 2,195 1.941 14.113 12.524 22.149 20,789 1.56 1.965 296 379 38.631 35,657 88 9,787 9,147 35519 10,973 (867) (40,194) 133,194) 6,316 40313 42.966 41,973 Balance outstanding at fiscal year-end Maximum amount outstanding at any month-end Average daily short-term borrowings Weighted average interest rate 44 Table of Contents The Company's Long-Term Deht at the end of fiscal 2016 and 2015 consisted of the following famounts in millions): 5.407% Senior Notes; due March 1, 2016, interest payable semi-annually on March 1 and September 1 Floating Rate Senior Notes due September 15, 2017 interest payable quarterly con March 15, June 15. September 15 and December 15 2.25% Senior Notes, due September 10, 2018; interest payable semi-annually en March 10 and September 10 2.00% Senior Notes, due June 15, 2019. Interest payable manually June 15 and December 15 3.98%Senior Notes, due September 15, 2000, interest payable semi-annually on March 15 and September 15 4.40% Senior Notes, due April , 2012, interest payable semi-annually on April 1 and October 1 2.00%Senior Notes de April 1, 2021 interest payable manually on April 1 and October 2.029% Senior Notesduone 1.2022. Interest payable semi-annually on June and December 2.2. Senior Notes de April 1. 2023, interese payable semi-annually on April 1 and October 1 3.79% Senior Notes due February 15, 21124, Interest puyable mi-annually on 3.38% Senior Notes dhe September 15, 2025, interest payable semi-amulyo March 15 and September 15 3.00%Senior Noter, due April 1, 2006 interest payable semi-annually on April 1 and October 1 3.125% Senior Notes: due September 15, 2006, interest payable semi-romually on March 15 and September 15 5.879% Sensor Notes de December 16, 2036, interest payable semi-annually on June 16 and December 16 5.40% Senior Notes, due September 15, 2040: interest payable semanmully on March 15 and September IS 5.95% Senior Notes: due April 1, 2041; interest payable semi-atmually on April 1 and October 1 4.20% Senior Notes, due April 1, 2043; interest payable semi-annually on April 1 and October 1 4.875% Senior Notes, due February 15, 2044, interest payable semi-annually on February 15 and August 15 4.40% Senior Notes, due March 15, 2045, interest puyable semi-annually en March 15 and September 15 4.25% Senior Notes, due April 1, 2046 interest payable semi-annually co April 1 and October 1 3.50% Senior Notes, due September 15,2056; interest payable semi-annually on March 15 and September 15 Capital Lease Obligations, payable in varying installments through January 31, 2055 Other Total debt Less current installments Long-Term Debt, excluding current installment SE 3