QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended May 4, 2012
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from ______ to ______
|
Commission File Number
|
1-7898
|
LOWE'S COMPANIES, INC.
|
(Exact name of registrant as specified in its charter)
|
NORTH CAROLINA
|
56-0578072
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
1000 Lowe's Blvd., Mooresville, NC
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28117
|
(Address of principal executive offices)
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(Zip Code)
|
Registrant's telephone number, including area code
|
(704) 758-1000
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CLASS
|
OUTSTANDING AT JUNE 1, 2012
|
|
Common Stock, $.50 par value
|
1,176,721,190 |
- INDEX -
|
|||||
PART I - Financial Information
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Page No.
|
||||
Item 1.
|
Financial Statements
|
||||
3 | |||||
4 | |||||
4 | |||||
5 | |||||
6-11 | |||||
12 | |||||
Item 2.
|
13-20 | ||||
|
|||||
Item 3.
|
20 | ||||
Item 4.
|
20-21 | ||||
PART II - Other Information
|
|||||
Item 1A.
|
22 | ||||
Item 2.
|
22 | ||||
Item 5.
|
22-24 | ||||
Item 6.
|
25-26 | ||||
27 | |||||
Part I - FINANCIAL INFORMATION
|
||||||||||
Item 1. - Financial Statements
|
||||||||||
Lowe's Companies, Inc.
|
||||||||||
In Millions, Except Par Value Data
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||
May 4, 2012
|
April 29, 2011
|
February 3, 2012
|
||||||||
Assets
|
||||||||||
Current assets:
|
||||||||||
Cash and cash equivalents
|
$
|
3,072
|
$
|
1,496
|
$
|
1,014
|
||||
Short-term investments
|
161
|
345
|
286
|
|||||||
Merchandise inventory - net
|
9,786
|
9,661
|
8,355
|
|||||||
Deferred income taxes - net
|
279
|
232
|
183
|
|||||||
Other current assets
|
330
|
239
|
234
|
|||||||
Total current assets
|
13,628
|
11,973
|
10,072
|
|||||||
Property, less accumulated depreciation
|
21,821
|
22,060
|
21,970
|
|||||||
Long-term investments
|
710
|
1,209
|
504
|
|||||||
Other assets
|
1,049
|
642
|
1,013
|
|||||||
Total assets
|
$
|
37,208
|
$
|
35,884
|
$
|
33,559
|
||||
Liabilities and Shareholders' Equity
|
||||||||||
Current liabilities:
|
||||||||||
Current maturities of long-term debt
|
$
|
593
|
$
|
38
|
$
|
592
|
||||
Accounts payable
|
6,977
|
6,694
|
4,352
|
|||||||
Accrued compensation and employee benefits
|
492
|
557
|
613
|
|||||||
Deferred revenue
|
881
|
970
|
801
|
|||||||
Other current liabilities
|
2,053
|
1,662
|
1,533
|
|||||||
Total current liabilities
|
10,996
|
9,921
|
7,891
|
|||||||
Long-term debt, excluding current maturities
|
9,018
|
6,538
|
7,035
|
|||||||
Deferred income taxes - net
|
412
|
498
|
531
|
|||||||
Deferred revenue - extended protection plans
|
716
|
650
|
704
|
|||||||
Other liabilities
|
863
|
818
|
865
|
|||||||
Total liabilities
|
22,005
|
18,425
|
17,026
|
|||||||
Shareholders' equity:
|
||||||||||
Preferred stock - $5 par value, none issued
|
-
|
-
|
-
|
|||||||
Common stock - $.50 par value;
|
||||||||||
Shares issued and outstanding
|
||||||||||
May 4, 2012
|
1,187
|
|||||||||
April 29, 2011
|
1,318
|
|||||||||
February 3, 2012
|
1,241
|
594
|
659
|
621
|
||||||
Capital in excess of par value
|
-
|
-
|
14
|
|||||||
Retained earnings
|
14,557
|
16,715
|
15,852
|
|||||||
Accumulated other comprehensive income
|
52
|
85
|
46
|
|||||||
Total shareholders' equity
|
15,203
|
17,459
|
16,533
|
|||||||
Total liabilities and shareholders' equity
|
$
|
37,208
|
$
|
35,884
|
$
|
33,559
|
||||
See accompanying notes to the consolidated financial statements (unaudited).
|
Lowe's Companies, Inc.
|
||||||||||||||||
In Millions, Except Per Share and Percentage Data
|
||||||||||||||||
Three Months Ended
|
||||||||||||||||
May 4, 2012
|
April 29, 2011
|
|||||||||||||||
Current Earnings
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||
Net sales
|
$ | 13,153 | 100.00 | $ | 12,185 | 100.00 | ||||||||||
Cost of sales
|
8,589 | 65.30 | 7,866 | 64.56 | ||||||||||||
Gross margin
|
4,564 | 34.70 | 4,319 | 35.44 | ||||||||||||
Expenses:
|
||||||||||||||||
Selling, general and administrative
|
3,241 | 24.65 | 3,120 | 25.60 | ||||||||||||
Depreciation
|
370 | 2.81 | 371 | 3.05 | ||||||||||||
Interest - net
|
103 | 0.78 | 88 | 0.72 | ||||||||||||
Total expenses
|
3,714 | 28.24 | 3,579 | 29.37 | ||||||||||||
Pre-tax earnings
|
850 | 6.46 | 740 | 6.07 | ||||||||||||
Income tax provision
|
323 | 2.45 | 279 | 2.28 | ||||||||||||
Net earnings
|
$ | 527 | 4.01 | $ | 461 | 3.79 | ||||||||||
Weighted average common shares outstanding - basic
|
1,206 | 1,324 | ||||||||||||||
Basic earnings per common share
|
$ | 0.43 | $ | 0.35 | ||||||||||||
Weighted average common shares outstanding - diluted
|
1,208 | 1,328 | ||||||||||||||
Diluted earnings per common share
|
$ | 0.43 | $ | 0.34 | ||||||||||||
Cash dividends per share
|
$ | 0.14 | $ | 0.11 | ||||||||||||
Retained Earnings
|
||||||||||||||||
Balance at beginning of period
|
$ | 15,852 | $ | 17,371 | ||||||||||||
Net earnings
|
527 | 461 | ||||||||||||||
Cash dividends
|
(165 | ) | (145 | ) | ||||||||||||
Share repurchases
|
(1,657 | ) | (972 | ) | ||||||||||||
Balance at end of period
|
$ | 14,557 | $ | 16,715 | ||||||||||||
Lowe's Companies, Inc.
|
||||||||||||||||
In Millions, Except Percentage Data
|
||||||||||||||||
Three Months Ended
|
||||||||||||||||
May 4, 2012
|
April 29, 2011
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
Net earnings
|
$ | 527 | 4.01 | $ | 461 | 3.79 | ||||||||||
Foreign currency translation adjustments
|
6 | 0.05 | 31 | 0.25 | ||||||||||||
Net unrealized investment gains
|
- | - | 1 | 0.01 | ||||||||||||
Other comprehensive income
|
6 | 0.05 | 32 | 0.26 | ||||||||||||
Comprehensive income
|
$ | 533 | 4.06 | $ | 493 | 4.05 | ||||||||||
See accompanying notes to the consolidated financial statements (unaudited).
|
Lowe's Companies, Inc.
|
||||||||
In Millions
|
||||||||
Three Months Ended
|
||||||||
May 4, 2012
|
April 29, 2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$ | 527 | $ | 461 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
396 | 397 | ||||||
Deferred income taxes
|
(230 | ) | (43 | ) | ||||
Loss on property and other assets - net
|
19 | 9 | ||||||
Loss on equity method investments
|
15 | 2 | ||||||
Share-based payment expense
|
25 | 30 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Merchandise inventory - net
|
(1,432 | ) | (1,329 | ) | ||||
Other operating assets
|
(65 | ) | 104 | |||||
Accounts payable
|
2,625 | 2,339 | ||||||
Other operating liabilities
|
587 | 453 | ||||||
Net cash provided by operating activities
|
2,467 | 2,423 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of investments
|
(708 | ) | (627 | ) | ||||
Proceeds from sale/maturity of investments
|
627 | 554 | ||||||
Property acquired
|
(337 | ) | (313 | ) | ||||
Change in equity method investments - net
|
(70 | ) | (32 | ) | ||||
Proceeds from sale of property and other long-term assets
|
29 | 5 | ||||||
Other - net
|
(11 | ) | 2 | |||||
Net cash used in investing activities
|
(470 | ) | (411 | ) | ||||
Cash flows from financing activities:
|
||||||||
Net proceeds from issuance of long-term debt
|
1,984 | - | ||||||
Repayment of long-term debt
|
(10 | ) | (9 | ) | ||||
Proceeds from issuance of common stock under share-based payment plans
|
53 | 15 | ||||||
Cash dividend payments
|
(174 | ) | (149 | ) | ||||
Repurchase of common stock
|
(1,789 | ) | (1,031 | ) | ||||
Other - net
|
(4 | ) | 3 | |||||
Net cash provided by (used in) financing activities
|
60 | (1,171 | ) | |||||
Effect of exchange rate changes on cash
|
1 | 3 | ||||||
Net increase in cash and cash equivalents
|
2,058 | 844 | ||||||
Cash and cash equivalents, beginning of period
|
1,014 | 652 | ||||||
Cash and cash equivalents, end of period
|
$ | 3,072 | $ | 1,496 | ||||
See accompanying notes to the consolidated financial statements (unaudited).
|
·
|
Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities
|
·
|
Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly
|
·
|
Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
|
Significant Other
Observable
Inputs
|
Significant Unobservable Inputs
|
||||||||||||||
(In millions)
|
May 4, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
Municipal obligations
|
$ | 58 | $ | - | $ | 58 | $ | - | ||||||||
Municipal floating rate obligations
|
35 | - | 35 | - | ||||||||||||
Money market funds
|
33 | 33 | - | - | ||||||||||||
Other
|
8 | 8 | - | - | ||||||||||||
Trading securities:
|
||||||||||||||||
Mutual funds
|
27 | 27 | - | - | ||||||||||||
Total short-term investments
|
$ | 161 | $ | 68 | $ | 93 | $ | - | ||||||||
Available-for-sale securities:
|
||||||||||||||||
Municipal floating rate obligations
|
$ | 621 | $ | - | $ | 621 | $ | - | ||||||||
Municipal obligations
|
89 | - | 89 | - | ||||||||||||
Total long-term investments
|
$ | 710 | $ | - | $ | 710 | $ | - | ||||||||
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
|
Significant Other
Observable
Inputs
|
Significant Unobservable Inputs
|
||||||||||||||
(In millions)
|
April 29, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
Municipal obligations
|
$ | 156 | $ | - | $ | 156 | $ | - | ||||||||
Municipal floating rate obligations
|
49 | - | 49 | - | ||||||||||||
Money market funds
|
84 | 84 | - | - | ||||||||||||
Other
|
2 | 2 | - | - | ||||||||||||
Trading securities:
|
||||||||||||||||
Mutual funds
|
54 | 54 | - | - | ||||||||||||
Total short-term investments
|
$ | 345 | $ | 140 | $ | 205 | $ | - | ||||||||
Available-for-sale securities:
|
||||||||||||||||
Municipal floating rate obligations
|
$ | 959 | $ | - | $ | 959 | $ | - | ||||||||
Municipal obligations
|
224 | - | 224 | - | ||||||||||||
Other
|
26 | - | 26 | - | ||||||||||||
Total long-term investments
|
$ | 1,209 | $ | - | $ | 1,209 | $ | - | ||||||||
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
|
Significant Other
Observable
Inputs
|
Significant Unobservable Inputs
|
||||||||||||||
(In millions)
|
February 3, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
Municipal obligations
|
$ | 79 | $ | - | $ | 79 | $ | - | ||||||||
Municipal floating rate obligations
|
25 | - | 25 | - | ||||||||||||
Money market funds
|
153 | 153 | - | - | ||||||||||||
Other
|
2 | 2 | - | - | ||||||||||||
Trading securities:
|
||||||||||||||||
Mutual funds
|
27 | 27 | - | - | ||||||||||||
Total short-term investments
|
$ | 286 | $ | 182 | $ | 104 | $ | - | ||||||||
Available-for-sale securities:
|
||||||||||||||||
Municipal floating rate obligations
|
$ | 363 | $ | - | $ | 363 | $ | - | ||||||||
Municipal obligations
|
122 | - | 122 | - | ||||||||||||
Other
|
19 | - | 19 | - | ||||||||||||
Total long-term investments
|
$ | 504 | $ | - | $ | 504 | $ | - |
May 4, 2012
|
April 29, 2011
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
(In millions)
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||
Unsecured notes (Level 1)
|
$ | 9,174 | $ | 10,340 | $ | 6,193 | $ | 6,755 | ||||||||
Mortgage notes (Level 2)
|
20 | 24 | 21 | 25 | ||||||||||||
Long-term debt (excluding capitalized lease obligations)
|
$ | 9,194 | $ | 10,364 | $ | 6,214 | $ | 6,780 |
Three Months Ended
|
||||||||
(In millions)
|
May 4, 2012
|
April 29, 2011
|
||||||
Deferred revenue - extended protection plans, beginning of period
|
$ | 704 | $ | 631 | ||||
Additions to deferred revenue
|
66 | 65 | ||||||
Deferred revenue recognized
|
(54 | ) | (46 | ) | ||||
Deferred revenue - extended protection plans, end of period
|
$ | 716 | $ | 650 |
Three Months Ended
|
||||||||
(In millions)
|
May 4, 2012
|
April 29, 2011
|
||||||
Liability for extended protection plan claims, beginning of period
|
$ | 21 | $ | 20 | ||||
Accrual for claims incurred
|
17 | 19 | ||||||
Claim payments
|
(16 | ) | (20 | ) | ||||
Liability for extended protection plan claims, end of period
|
$ | 22 | $ | 19 |
Three Months Ended
|
||||||||||||||||
May 4, 2012
|
April 29, 2011
|
|||||||||||||||
(In millions)
|
Shares
|
Cost 1
|
Shares
|
Cost 1
|
||||||||||||
Share repurchase program
|
58.0 | $ | 1,750 | 37.9 | $ | 1,000 | ||||||||||
Shares repurchased from employees
|
1.3 | 39 | 1.3 | 33 | ||||||||||||
Total share repurchases
|
59.3 | $ | 1,789 | 39.2 | $ | 1,033 |
Three Months Ended
|
||||||||
(In millions, except per share data)
|
May 4, 2012
|
April 29, 2011
|
||||||
Basic earnings per common share:
|
||||||||
Net earnings
|
$ | 527 | $ | 461 | ||||
Less: Net earnings allocable to participating securities
|
(3 | ) | (3 | ) | ||||
Net earnings allocable to common shares
|
$ | 524 | $ | 458 | ||||
Weighted-average common shares outstanding
|
1,206 | 1,324 | ||||||
Basic earnings per common share
|
$ | 0.43 | $ | 0.35 | ||||
Diluted earnings per common share:
|
||||||||
Net earnings
|
$ | 527 | $ | 461 | ||||
Less: Net earnings allocable to participating securities
|
(3 | ) | (3 | ) | ||||
Net earnings allocable to common shares
|
$ | 524 | $ | 458 | ||||
Weighted-average common shares outstanding
|
1,206 | 1,324 | ||||||
Dilutive effect of non-participating share-based awards
|
2 | 4 | ||||||
Weighted-average common shares, as adjusted
|
1,208 | 1,328 | ||||||
Diluted earnings per common share
|
$ | 0.43 | $ | 0.34 |
Net interest expense is comprised of the following:
|
||||||||
Three Months Ended
|
||||||||
(In millions)
|
May 4, 2012
|
April 29, 2011
|
||||||
Long-term debt
|
$ | 97 | $ | 83 | ||||
Capitalized lease obligations
|
9 | 9 | ||||||
Interest income
|
(2 | ) | (3 | ) | ||||
Interest capitalized
|
(1 | ) | (2 | ) | ||||
Interest on tax uncertainties
|
(3 | ) | (1 | ) | ||||
Other
|
3 | 2 | ||||||
Interest - net
|
$ | 103 | $ | 88 |
Supplemental disclosures of cash flow information:
|
||||||||
Three Months Ended
|
||||||||
(In millions)
|
May 4, 2012
|
April 29, 2011
|
||||||
Cash paid for interest, net of amount capitalized
|
$ | 177 | $ | 171 | ||||
Cash paid for income taxes, net
|
$ | 76 | $ | 72 | ||||
Non-cash investing and financing activities:
|
||||||||
Non-cash property acquisitions, including assets acquired under capital lease
|
$ | 8 | $ | 31 | ||||
Cash dividends declared but not paid
|
$ | 165 | $ | 145 | ||||
Non-cash employee stock option exercises
|
$ | - | $ | 2 |
·
|
Executive Overview
|
·
|
Operations
|
·
|
Lowe’s Business Outlook
|
·
|
Financial Condition, Liquidity and Capital Resources
|
·
|
Off-Balance Sheet Arrangements
|
·
|
Contractual Obligations and Commercial Commitments
|
·
|
Critical Accounting Policies and Estimates
|
Three Months Ended
|
Basis Point Increase / (Decrease) in Percentage of Net Sales from Prior Period
|
Percentage Increase / (Decrease) in Dollar Amounts from Prior Period
|
|||||||
May 4, 2012
|
April 29, 2011
|
2012 vs. 2011
|
2012 vs. 2011
|
||||||
Net sales
|
100.00
|
%
|
100.00
|
%
|
N/A
|
7.9
|
%
|
||
Gross margin
|
34.70
|
35.44
|
(74
|
) |
5.7
|
||||
Expenses:
|
|||||||||
Selling, general and administrative
|
24.65
|
25.60
|
(95
|
) |
3.9
|
||||
Depreciation
|
2.81
|
3.05
|
(24
|
) |
(0.4
|
) | |||
Interest - net
|
0.78
|
0.72
|
6
|
16.8
|
|||||
Total expenses
|
28.24
|
29.37
|
(113
|
) |
3.8
|
||||
Pre-tax earnings
|
6.46
|
6.07
|
39
|
14.8
|
|||||
Income tax provision
|
2.45
|
2.28
|
17
|
15.7
|
|||||
Net earnings
|
4.01
|
%
|
3.79
|
%
|
22
|
14.3
|
%
|
||
EBIT margin 1
|
7.24
|
%
|
6.79
|
%
|
45
|
15.0
|
%
|
Three Months Ended
|
||||||
Other Metrics
|
May 4, 2012
|
April 29, 2011
|
||||
Comparable store sales increase/(decrease) 2, 3
|
2.6 | % | (3.3 | )% | ||
Total customer transactions (in millions) 4
|
208 | 195 | ||||
Average ticket 4, 5
|
$ | 63.09 | $ | 62.51 | ||
At end of period:
|
||||||
Number of stores
|
1,747 | 1,751 | ||||
Sales floor square feet (in millions)
|
197 | 197 | ||||
Average store size selling square feet (in thousands) 6
|
113 | 113 | ||||
Return on invested capital 7
|
9.0 | % | 8.9 | % |
|
1 EBIT margin, also referred to as operating margin, is defined as earnings before interest and taxes as a percentage of sales.
|
|
2 Comparable store sales are based on comparable 13-week periods.
|
|
3 A comparable store is defined as a store that has been open longer than 13 months. A store that is identified for relocation is no longer considered comparable one month prior to its relocation. The relocated store must then remain open longer than 13 months to be considered comparable. A store we have decided to close is no longer considered comparable as of the beginning of the month in which we announce its closing.
|
|
4 In fiscal 2012, there is a one week shift as a result of the 53rd week in 2011.
|
|
5 Average ticket is defined as net sales divided by the total number of customer transactions.
|
6 Average store size selling square feet is defined as sales floor square feet divided by the number of stores open at the end of the period.
|
|
7 Return on invested capital is a non-GAAP measure. See below for additional information.
|
(In millions, except percentage data)
|
For the periods ended
|
|||||||
Calculation of Return on Invested Capital
|
May 4, 2012
|
April 29, 2011
|
||||||
Numerator 1
|
||||||||
Net earnings
|
$ | 1,905 | $ | 1,982 | ||||
Plus:
|
||||||||
Interest expense - net
|
386 | 338 | ||||||
Provision for income taxes
|
1,111 | 1,200 | ||||||
Earnings before interest and taxes
|
3,402 | 3,520 | ||||||
Less:
|
||||||||
Income tax adjustment 2
|
1,253 | 1,327 | ||||||
Net operating profit after tax
|
$ | 2,149 | $ | 2,193 | ||||
Effective tax rate
|
36.8 | % | 37.7 | % | ||||
Denominator
|
||||||||
Average debt and equity 3
|
$ | 23,966 | $ | 24,611 | ||||
Return on invested capital
|
9.0 | % | 8.9 | % | ||||
Calculation of Return on Average Debt and Equity
|
||||||||
Numerator 1
|
||||||||
Net earnings
|
$ | 1,905 | $ | 1,982 | ||||
Denominator
|
||||||||
Average debt and equity 3
|
$ | 23,966 | $ | 24,611 | ||||
Return on average debt and equity
|
7.9 | % | 8.1 | % |
Debt Ratings
|
S&P
|
Moody’s
|
Commercial Paper
|
A-2
|
P-2
|
Senior Debt
|
A-
|
A3
|
Outlook
|
Negative
|
Stable
|
Payments Due by Period
|
||||||||||||||||||||
Contractual Obligations
|
Less Than
|
1-3 | 4-5 |
After 5
|
||||||||||||||||
(In millions)
|
Total
|
1 Year
|
Years
|
Years
|
Years
|
|||||||||||||||
Long-term debt (principal and interest amounts, excluding discount)
|
$ | 16,302 | $ | 979 | $ | 832 | $ | 2,801 | $ | 11,690 |
(In millions, except average price paid per share)
|
Total Number of Shares Purchased 1
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs 2
|
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs 2
|
|||||||||
February 4, 2012 - March 2, 2012
|
6.2
|
$
|
28.35
|
4.9
|
$
|
4,362
|
|||||||
March 3, 2012 - April 6, 2012
|
47.8
|
30.30
|
47.8
|
2,913
|
|||||||||
April 7, 2012 - May 4, 2012
|
5.3
|
30.95
|
5.3
|
2,750
|
|||||||||
As of May 4, 2012
|
59.3
|
$
|
30.16
|
58.0
|
$
|
2,750
|
VOTES FOR
|
VOTES WITHHELD
|
BROKER NON-VOTES
|
|
Raul Alvarez
|
924,158,095
|
16,409,207
|
137,772,419
|
David W. Bernauer
|
926,163,708
|
14,403,594
|
137,772,419
|
Leonard L. Berry, Ph.D.
|
926.555.298
|
14,012,004
|
137,772,419
|
Peter C. Browning
|
876,089,431
|
64,477,871
|
137,772,419
|
Richard W. Dreiling
|
929,037,291
|
11,530,011
|
137,772,419
|
Dawn E. Hudson
|
901,639,111
|
38,928,191
|
137,772,419
|
Robert L. Johnson
|
906,644,303
|
33,922,999
|
137,772,419
|
Marshall O. Larsen
|
856,404,080
|
84,163,222
|
137,772,419
|
Richard K. Lochridge
|
910,554,025
|
30,013,277
|
137,772,419
|
Robert A. Niblock
|
910,800,081
|
29,767,221
|
137,772,419
|
Eric C. Wiseman
|
901,349,730
|
39,217,572
|
137,772,419
|
VOTES FOR
|
VOTES AGAINST
|
ABSTENTIONS
|
1,067,280,821
|
7,561,128
|
3,497,772
|
VOTES FOR | VOTES AGAINST | ABSTENTIONS | BROKER NON-VOTES |
898,399,627 | 38,797,954 | 3,369,721 | 137,772,419 |
VOTES FOR | VOTES AGAINST | ABSTENTIONS | BROKER NON-VOTES |
926,029,374 | 11,896,633 | 2,641,295 | 137,772,419 |
VOTES FOR | VOTES AGAINST | ABSTENTIONS | BROKER NON-VOTES |
217,988,707 | 714,265,257 | 8,313,338 | 137,772,419 |
Exhibit
|
Incorporated by Reference
|
|||||||||
Number
|
Exhibit Description
|
Form
|
File No.
|
Exhibit(s)
|
Filing Date
|
|||||
3.1
|
Restated Charter of Lowe's Companies, Inc.
|
10-Q
|
001-07898
|
3.1
|
September 1, 2009
|
|||||
3.2
|
Bylaws of Lowe's Companies, Inc., as amended and restated.
|
8-K
|
001-07898
|
3.1
|
January 31, 2012
|
|||||
10.1
|
Lowe's Companies Employee Stock Purchase Plan - Stock Options for Everyone, as amended and restated effective June 1, 2012.*
|
DEF 14A
|
001-07898
|
Appendix B
|
April 13, 2012
|
|||||
10.2 | Form of the Company's Management Continuity Agreement for Tier 1 Senior Officers.*‡ | |||||||||
12.1
|
Statement Re Computation of Ratio of Earnings to Fixed Charges.‡
|
|||||||||
15.1
|
Deloitte & Touche LLP Letter Re Unaudited Interim Financial Information.‡
|
|||||||||
31.1
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.‡
|
|||||||||
31.2
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.‡
|
|||||||||
32.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.†
|
|||||||||
32.2
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.†
|
|||||||||
101.INS
|
XBRL Instance Document.‡
|
|||||||||
101.SCH
|
XBRL Taxonomy Extension Schema Document.‡
|
|||||||||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.‡
|
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document.‡ | |||||||||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.‡
|
|||||||||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.‡
|
|||||||||
*
|
Management contract or compensatory plan or arrangement required to be filed as an exhibit to this form.
|
|||||||||
‡
|
Filed herewith.
|
|||||||||
†
|
Furnished herewith.
|
|||||||||
LOWE'S COMPANIES, INC.
|
||
June 5, 2012
Date
|
/s/ Matthew V. Hollifield
Matthew V. Hollifield
Senior Vice President and Chief Accounting Officer
|
EXECUTIVE | |||
LOWE'S COMPANIES, INC. | |||
By: | |||
Name: | |||
Title: | |||
|
Exhibit 12.1
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Lowe's Companies, Inc.
|
||||||||||||||||||||||||||||
Statement Re Computation of Ratio of Earnings to Fixed Charges
|
||||||||||||||||||||||||||||
In Millions, Except Ratio Data
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
Three Months Ended
|
Fiscal Years Ended On
|
||||||||||||||||||||||||||
|
May 4,
|
April 29,
|
February 3,
|
January 28,
|
January 29,
|
January 30,
|
February 2,
|
|||||||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Earnings:
|
||||||||||||||||||||||||||||
Earnings Before Income Taxes
|
$ | 850 | $ | 740 | $ | 2,906 | $ | 3,228 | $ | 2,825 | $ | 3,506 | $ | 4,511 | ||||||||||||||
Fixed Charges
|
144 | 128 | 524 | 486 | 468 | 479 | 424 | |||||||||||||||||||||
Capitalized Interest 1
|
2 | 1 | - | (4 | ) | (19 | ) | (36 | ) | (65 | ) | |||||||||||||||||
Adjusted Earnings
|
$ | 996 | $ | 869 | $ | 3,430 | $ | 3,710 | $ | 3,274 | $ | 3,949 | $ | 4,870 | ||||||||||||||
|
||||||||||||||||||||||||||||
Fixed Charges:
|
||||||||||||||||||||||||||||
Interest Expense 2
|
$ | 109 | $ | 94 | $ | 385 | $ | 352 | $ | 331 | $ | 346 | $ | 301 | ||||||||||||||
Rental Expense 3
|
35 | 34 | 139 | 134 | 137 | 133 | 123 | |||||||||||||||||||||
Total Fixed Charges
|
$ | 144 | $ | 128 | $ | 524 | $ | 486 | $ | 468 | $ | 479 | $ | 424 | ||||||||||||||
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Ratio of Earnings to Fixed Charges
|
6.9 | 6.8 | 6.5 | 7.6 | 7.0 | 8.2 | 11.5 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
1 Includes the net of subtractions for interest capitalized and additions for amortization of previously-capitalized interest.
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
2 Interest accrued on uncertain tax positions is excluded from Interest Expense in the computation of Fixed Charges.
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
3 The portion of rental expense that is representative of the interest factor in these rentals.
|
Description
|
Registration
Statement Number
|
Form S-3 ASR
|
|
Lowe’s Stock Advantage Direct Stock Purchase Plan
|
333-178150
|
Debt Securities, Preferred Stock, Common Stock
|
333-161697
|
Form S-8
|
|
Lowe’s 401(k) Plan
|
33-29772
|
Lowe’s Companies, Inc. 1994 Incentive Plan
|
33-54499
|
Lowe’s Companies, Inc. 1997 Incentive Plan
|
333-34631
|
Lowe’s Companies, Inc. Directors’ Stock Option Plan
|
333-89471
|
Lowe’s Companies Benefit Restoration Plan
|
333-97811
|
Lowe’s Companies Cash Deferral Plan
|
333-114435
|
Lowe’s Companies, Inc. 2006 Long-Term Incentive Plan
|
333-138031
|
Lowe’s Companies Employee Stock Purchase Plan – Stock Options for Everyone
|
333-143266
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
June 5, 2012
|
/s/ Robert A. Niblock
|
|
Date
|
Robert A. Niblock
Chairman of the Board, President and Chief Executive Officer
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
June 5, 2012
|
/s/ Robert F. Hull, Jr.
|
|
Date
|
Robert F. Hull, Jr.
Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Shareholders' Equity (Details) (USD $)
Share data in Millions, unless otherwise specified |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
May 04, 2012
|
Apr. 29, 2011
|
Aug. 19, 2011
|
|||||
Shareholders' Equity | |||||||
Amount authorized under share repurchase program | $ 5,000,000,000 | ||||||
Remaining authorization under share repurchase program | 2,750,000,000 | ||||||
Share repurchase program, shares | 58.0 | 37.9 | |||||
Shares repurchased from employees, shares | 1.3 | 1.3 | |||||
Total share repurchases, shares | 59.3 | 39.2 | |||||
Share repurchase program, value | 1,750,000,000 | [1] | 1,000,000,000 | [1] | |||
Shares repurchased from employees, value | 39,000,000 | [1] | 33,000,000 | [1] | |||
Total share repurchases, value | 1,789,000,000 | [1] | 1,033,000,000 | [1] | |||
Reduction in retained earnings | $ 1,657,000,000 | $ 972,000,000 | |||||
|
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Supplemental Disclosure (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
May 04, 2012
|
Apr. 29, 2011
|
|
Net interest expense | ||
Long-term debt | $ 97 | $ 83 |
Capitalized lease obligations | 9 | 9 |
Interest income | (2) | (3) |
Interest capitalized | (1) | (2) |
Interest on tax uncertainties | (3) | (1) |
Other | 3 | 2 |
Interest - net | $ 103 | $ 88 |
Basis of Presentation
|
3 Months Ended |
---|---|
May 04, 2012
|
|
Basis of Presentation | |
Basis of Presentation | Note 1: Basis of Presentation - The accompanying consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of May 4, 2012 and April 29, 2011, and the results of operations and cash flows for the three months ended May 4, 2012 and April 29, 2011.
These interim consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe's Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended February 3, 2012 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.
Certain prior period amounts have been reclassified to conform to current classifications. Certain amounts within the consolidated statements of cash flows have been reclassified, including the loss on equity method investments and net contributions to equity method investments, which are now presented as separate line items.
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