EX-12.1 2 exhibit121_02022018.htm STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.1

Lowe’s Companies, Inc.
Statement Re Computation of Ratio of Earnings to Fixed Charges
In Millions, Except Ratio Data
 
Fiscal Years Ended On
 
January 31, 2014

 
January 30, 2015

 
January 29, 2016 4

 
February 3, 2017

 
February 2, 2018

Earnings:
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
$
3,673

 
$
4,276

 
$
4,419

 
$
5,201

 
$
5,489

Fixed Charges
623

 
677

 
720

 
847

 
870

Capitalized Interest 1
8

 
9

 
9

 
8

 
7

Adjusted Earnings
$
4,304

 
$
4,962

 
$
5,148

 
$
6,056

 
$
6,366

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest Expense 2
478

 
525

 
559

 
659

 
657

Rental Expense 3
145

 
152

 
161

 
188

 
213

Total Fixed Charges
$
623

 
$
677

 
$
720

 
$
847

 
$
870

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
6.9

 
7.3

 
7.1

 
7.2

 
7.3

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.
4 
Earnings for the fiscal year ended January 29, 2016 included a $530 million non-cash impairment charge related to the investment in the Australia joint venture with Woolworths Limited. Excluding this charge from the calculation would result in a ratio of earnings to fixed charges of 7.9 for the fiscal year ended January 29, 2016.