The Home Depot Announces $2 Billion Senior Note Issuance and $1 Billion Accelerated Share Repurchase Program

Share repurchase is in addition to previously announced intention to repurchase approximately $2.5 billion of outstanding shares throughout 2011.

The Home Depot announced the pricing of a $2 billion senior note issuance. Net proceeds from the financing will be used to refinance $1 billion of senior notes that came due in March 2011 and to repurchase $1 billion of outstanding shares through an accelerated share repurchase program with Barclays Capital. The accelerated share repurchase is in addition to the Company's previously announced intention to repurchase approximately $2.5 billion of outstanding shares throughout 2011 using excess cash generated by the business.

"Creating strong shareholder value is a priority, and we are committed to returning capital to our shareholders in the form of dividends and share repurchases," said Frank Blake, chairman and CEO. "2010 was the first year of positive sales growth since 2006 and our business continues to stabilize. As such, we elected to take advantage of the attractive interest rate environment and raise incremental debt capital to be used for share repurchases."

In February 2011, the Company announced a six percent increase in its quarterly cash dividend to 25 cents per share. The Company launched its stock repurchase program in 2002 and cumulatively through the end of fiscal 2010 had purchased approximately $30.1 billion of its outstanding common stock. As of the end of fiscal 2010, the Company had $9.9 billion remaining in its share repurchase authorization.

The Company reiterated its sales and earnings per share guidance for fiscal 2011 where it expects sales to be up approximately 2.5% for the year and diluted earnings per share from continuing operations to be up approximately 9.5% to $2.20, excluding the impact of share repurchases.

The Home Depot is the world's largest home improvement specialty retailer, with 2,244 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, Mexico and China. In fiscal 2010, The Home Depot had sales of $68.0 billion and earnings from continuing operations of $3.3 billion. The Company employs more than 300,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.