This excerpt taken from the HD 8-K filed Aug 31, 2007.
1. The Home Depot completed the sale of HD Supply on August 30, 2007 to Bain Capital Partners, Carlyle Group and Clayton, Dubilier & Rice for $8.5 billion. In connection with the sale, The Home Depot retained a 12.5% equity interest in HD Supply at a cost of $325 million and guaranteed a $1.0 billion senior secured loan of HD Supply. For the pro forma condensed consolidated statement of operations data, HD Supply has been treated as a discontinued operation.
2. Net adjustments to cash and cash equivalents of $9.986 billion assume the use of $10.5 billion of cash for share repurchases in the Offer plus $20 million in estimated fees associated with the Offer, net of $534 million in proceeds from short-term debt.
3. The decrease in shareholders’ equity assumes $10.5 billion for share repurchases pursuant to the Offer. The number of shares to be repurchased is assumed to be 250 million at the maximum purchase price of $42.00 per share. If we were to purchase an additional 2% of outstanding shares, this would result in an additional decrease in shareholders’ equity and an increase in short-term debt of $1.5 billion at the minimum purchase price of $37.00 per share and $1.7 billion at the maximum purchase price of $42.00 per share.
4. Interest expense was adjusted for the assumed issuance of short-term debt at a rate of 6.2%. A one-eighth percentage point change in the interest rate would result in a change to interest expense for the three months ended April 29, 2007 and for the fiscal year ended January 29, 2007 of less than $1 million and $1 million, respectively.
5. Weighted average common shares and diluted weighted average common shares outstanding were adjusted assuming that we purchase 250 million shares in the Offer at the beginning of the first period presented.
The foregoing unaudited pro forma condensed consolidated financial data assumes that 250 million shares are purchased at the maximum purchase price of $42.00 per share. The table below summarizes the impact on cash, shareholders’ equity, and diluted earnings per share of each 10 million share decrease in the number of shares purchased at the minimum purchase price, midpoint of the price range, and the maximum purchase price.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki