Consider note 1 to the 2012 financial statements of Home Depot, Inc. , in Appendix A at the end of this textbook. Use this report to assess the globalization of Home Depot by answering the following questions:
a. What are the locations of Home Depot ‘s international stores? What other global operations does Home Depot undertake?
b. Refer to note 1 under “Segment Information.” What percentages of total assets and net sales revenue were associated with international operations in 2011? in 2012?
c. Read note 1 under “Foreign Currency Translation.” What exchange rate is used to translat foreign assets and liabilities for reporting purposes?
d. Read note 1 under “Derivatives.” Is there any evidence that management undertakes any formal hedging to attempt to reduce the impact of currency exchange risk?
e. Home Depot ‘s provision for taxes for 2012 and 2011 was $2,686 and $2,185 million, respectively. Of the total taxes each year, $230 and $150 million, respectively, were paid to foreign governments. What percentage of taxes was paid to foreign countries each year?
f. Review note 2 to the consolidated financial statements and use the information gathered from the above questions to explain if you believe Home Depot, Inc. , is a multinational company? Why or why not?