LOWES COMPANIES INC0000060667false2020Q301-2900000606672020-02-012020-10-30xbrli:shares00000606672020-11-23iso4217:USD00000606672020-10-3000000606672019-11-0100000606672020-01-31iso4217:USDxbrli:shares00000606672020-08-012020-10-30xbrli:pure00000606672019-08-032019-11-0100000606672019-02-022019-11-010000060667us-gaap:CommonStockMember2020-07-310000060667us-gaap:AdditionalPaidInCapitalMember2020-07-310000060667us-gaap:RetainedEarningsMember2020-07-310000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-3100000606672020-07-310000060667us-gaap:RetainedEarningsMember2020-08-012020-10-300000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-08-012020-10-300000060667us-gaap:AdditionalPaidInCapitalMember2020-08-012020-10-300000060667us-gaap:CommonStockMember2020-08-012020-10-300000060667us-gaap:CommonStockMember2020-10-300000060667us-gaap:AdditionalPaidInCapitalMember2020-10-300000060667us-gaap:RetainedEarningsMember2020-10-300000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-300000060667us-gaap:CommonStockMember2020-01-310000060667us-gaap:AdditionalPaidInCapitalMember2020-01-310000060667us-gaap:RetainedEarningsMember2020-01-310000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-310000060667us-gaap:RetainedEarningsMember2020-02-012020-10-300000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-02-012020-10-300000060667us-gaap:AdditionalPaidInCapitalMember2020-02-012020-10-300000060667us-gaap:CommonStockMember2020-02-012020-10-300000060667us-gaap:CommonStockMember2019-08-020000060667us-gaap:AdditionalPaidInCapitalMember2019-08-020000060667us-gaap:RetainedEarningsMember2019-08-020000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-08-0200000606672019-08-020000060667us-gaap:RetainedEarningsMember2019-08-032019-11-010000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-08-032019-11-010000060667us-gaap:AdditionalPaidInCapitalMember2019-08-032019-11-010000060667us-gaap:CommonStockMember2019-08-032019-11-010000060667us-gaap:CommonStockMember2019-11-010000060667us-gaap:AdditionalPaidInCapitalMember2019-11-010000060667us-gaap:RetainedEarningsMember2019-11-010000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-11-010000060667us-gaap:CommonStockMember2019-02-010000060667us-gaap:AdditionalPaidInCapitalMember2019-02-010000060667us-gaap:RetainedEarningsMember2019-02-010000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-02-0100000606672019-02-010000060667us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-02-010000060667srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-02-010000060667us-gaap:RetainedEarningsMember2019-02-022019-11-010000060667us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-02-022019-11-010000060667us-gaap:AdditionalPaidInCapitalMember2019-02-022019-11-010000060667us-gaap:CommonStockMember2019-02-022019-11-010000060667low:COVID19PandemicMember2020-08-012020-10-300000060667low:COVID19PandemicMember2020-02-012020-10-300000060667low:COVID19PandemicMember2020-10-300000060667us-gaap:ProductMember2020-08-012020-10-300000060667us-gaap:ProductMember2019-08-032019-11-010000060667us-gaap:ProductMember2020-02-012020-10-300000060667us-gaap:ProductMember2019-02-022019-11-010000060667us-gaap:ServiceMember2020-08-012020-10-300000060667us-gaap:ServiceMember2019-08-032019-11-010000060667us-gaap:ServiceMember2020-02-012020-10-300000060667us-gaap:ServiceMember2019-02-022019-11-010000060667us-gaap:ProductAndServiceOtherMember2020-08-012020-10-300000060667us-gaap:ProductAndServiceOtherMember2019-08-032019-11-010000060667us-gaap:ProductAndServiceOtherMember2020-02-012020-10-300000060667us-gaap:ProductAndServiceOtherMember2019-02-022019-11-010000060667low:HomeDecorMember2020-08-012020-10-300000060667low:HomeDecorMember2019-08-032019-11-010000060667low:HomeDecorMember2020-02-012020-10-300000060667low:HomeDecorMember2019-02-022019-11-010000060667low:BuildingProductsMember2020-08-012020-10-300000060667low:BuildingProductsMember2019-08-032019-11-010000060667low:BuildingProductsMember2020-02-012020-10-300000060667low:BuildingProductsMember2019-02-022019-11-010000060667low:HardlinesMember2020-08-012020-10-300000060667low:HardlinesMember2019-08-032019-11-010000060667low:HardlinesMember2020-02-012020-10-300000060667low:HardlinesMember2019-02-022019-11-010000060667low:OtherSalesMember2020-08-012020-10-300000060667low:OtherSalesMember2019-08-032019-11-010000060667low:OtherSalesMember2020-02-012020-10-300000060667low:OtherSalesMember2019-02-022019-11-010000060667country:US2020-08-012020-10-300000060667country:US2019-08-032019-11-010000060667country:US2020-02-012020-10-300000060667country:US2019-02-022019-11-010000060667us-gaap:NonUsMember2020-08-012020-10-300000060667us-gaap:NonUsMember2019-08-032019-11-010000060667us-gaap:NonUsMember2020-02-012020-10-300000060667us-gaap:NonUsMember2019-02-022019-11-010000060667us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-10-300000060667us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-11-010000060667us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310000060667us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-10-300000060667us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-11-010000060667us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310000060667us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-10-300000060667us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-11-010000060667us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310000060667us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMember2020-10-300000060667us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMember2019-11-010000060667us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMember2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMember2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMember2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherLongTermInvestmentsMember2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2020-01-310000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-10-300000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-11-010000060667us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310000060667us-gaap:UnsecuredDebtMember2020-10-300000060667us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:UnsecuredDebtMember2020-10-300000060667us-gaap:UnsecuredDebtMember2019-11-010000060667us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:UnsecuredDebtMember2019-11-010000060667us-gaap:UnsecuredDebtMember2020-01-310000060667us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:UnsecuredDebtMember2020-01-310000060667us-gaap:SecuredDebtMember2020-10-300000060667us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SecuredDebtMember2020-10-300000060667us-gaap:SecuredDebtMember2019-11-010000060667us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SecuredDebtMember2019-11-010000060667us-gaap:SecuredDebtMember2020-01-310000060667us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SecuredDebtMember2020-01-310000060667us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-10-300000060667us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-11-010000060667us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310000060667low:LongLivedAssetImpairmentMemberlow:CanadaRestructuringMember2019-08-032019-11-01low:store0000060667low:CanadaRestructuringMember2019-11-022020-01-310000060667low:LongLivedAssetImpairmentMemberlow:CanadaRestructuringMember2019-02-022019-11-010000060667low:CanadaRestructuringMember2019-08-032019-11-010000060667low:CanadaRestructuringMember2019-02-022019-11-010000060667low:A2020CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2020-03-310000060667low:A2020CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2020-03-012020-03-310000060667low:A2019CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2020-03-012020-03-310000060667us-gaap:RevolvingCreditFacilityMemberlow:SecondAmendedAndRestatedCreditAgreementMember2018-09-300000060667us-gaap:RevolvingCreditFacilityMemberlow:SecondAmendedAndRestatedCreditAgreementMember2018-09-012018-09-300000060667us-gaap:RevolvingCreditFacilityMember2020-10-300000060667us-gaap:RevolvingCreditFacilityMember2019-11-010000060667us-gaap:CommercialPaperMember2020-10-300000060667us-gaap:CommercialPaperMember2019-11-010000060667us-gaap:UnsecuredDebtMember2020-10-220000060667low:UnsecuredNotes1300Member2020-10-220000060667low:UnsecuredNotes1700Member2020-10-220000060667low:UnsecuredNotes3000Member2020-10-220000060667us-gaap:UnsecuredDebtMember2020-03-260000060667low:UnsecuredNotes4.000Member2020-03-260000060667low:UnsecuredNotes4.500Member2020-03-260000060667low:UnsecuredNotes5.000Member2020-03-260000060667low:UnsecuredNotes5.125Member2020-03-260000060667low:UnsecuredNotesIssuedIn2020Member2020-02-012020-10-300000060667low:A2020CashTenderOfferMember2020-08-012020-10-300000060667low:A2020CashTenderOfferMember2020-10-300000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-10-300000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-01-310000060667us-gaap:InterestRateSwapMember2020-08-012020-10-300000060667us-gaap:InterestRateSwapMember2019-08-032019-11-010000060667us-gaap:InterestRateSwapMember2020-02-012020-10-300000060667us-gaap:InterestRateSwapMember2019-02-022019-11-010000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-08-012020-10-300000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2019-08-032019-11-010000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-02-012020-10-300000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2019-02-022019-11-010000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-08-012020-10-300000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2019-08-032019-11-010000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-02-012020-10-300000060667us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2019-02-022019-11-010000060667low:ReverseTreasuryLockMemberus-gaap:NondesignatedMember2020-10-300000060667low:ReverseTreasuryLockMemberus-gaap:NondesignatedMember2020-02-012020-10-300000060667low:ReverseTreasuryLockMemberus-gaap:NondesignatedMember2020-08-012020-10-300000060667low:ShareRepurchaseProgramMember2020-10-300000060667low:AcceleratedShareRepurchaseMember2020-02-290000060667low:AcceleratedShareRepurchaseMember2020-02-012020-02-290000060667low:AcceleratedShareRepurchaseMember2020-02-012020-05-010000060667low:OpenMarketPurchasesMember2020-08-012020-10-300000060667low:OpenMarketPurchasesMember2020-02-012020-10-300000060667low:ShareRepurchaseProgramMember2020-08-012020-10-300000060667low:ShareRepurchaseProgramMember2019-08-032019-11-010000060667low:SharesRepurchasedFromEmployeesMember2020-08-012020-10-300000060667low:SharesRepurchasedFromEmployeesMember2019-08-032019-11-010000060667low:SharesRepurchaseProgramAndSharesRepurchasedFromEmployeesMember2020-08-012020-10-300000060667low:SharesRepurchaseProgramAndSharesRepurchasedFromEmployeesMember2019-08-032019-11-010000060667low:ShareRepurchaseProgramMember2020-02-012020-10-300000060667low:ShareRepurchaseProgramMember2019-02-022019-11-010000060667low:SharesRepurchasedFromEmployeesMember2020-02-012020-10-300000060667low:SharesRepurchasedFromEmployeesMember2019-02-022019-11-010000060667low:SharesRepurchaseProgramAndSharesRepurchasedFromEmployeesMember2020-02-012020-10-300000060667low:SharesRepurchaseProgramAndSharesRepurchasedFromEmployeesMember2019-02-022019-11-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 30, 2020
or 
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
low-20201030_g1.jpg
LOWE’S COMPANIES, INC.
(Exact name of registrant as specified in its charter)
North Carolina56-0578072
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1000 Lowes Blvd., Mooresville, North Carolina
28117
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:
(704) 758-1000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.50 per shareLOWNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
CLASSOUTSTANDING AT 11/23/2020
Common Stock, $0.50 par value732,722,859



LOWE’S COMPANIES, INC.
- TABLE OF CONTENTS -
Page No.
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 6.
i

Table of Contents
FORWARD-LOOKING STATEMENTS

This Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services, share repurchases, Lowe’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as the rate of unemployment, interest rate and currency fluctuations, fuel and other energy costs, slower growth in personal income, changes in consumer spending, changes in the rate of housing turnover, the availability of consumer credit and of mortgage financing, changes in commodity prices, changes or threatened changes in tariffs, outbreak of public health crises, such as the COVID-19 pandemic, availability and cost of goods from suppliers, changes in our management and key personnel, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A - Risk Factors” in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC, and in “Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” of this report on Form 10-Q. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

ii

Table of Contents
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
Lowe’s Companies, Inc.
Consolidated Balance Sheets (Unaudited)
In Millions, Except Par Value Data
October 30, 2020November 1, 2019January 31, 2020
Assets
Current assets:
Cash and cash equivalents$8,249 $794 $716 
Short-term investments 1,852 127 160 
Merchandise inventory – net15,712 13,716 13,179 
Other current assets1,103 1,025 1,263 
Total current assets26,916 15,662 15,318 
Property, less accumulated depreciation 18,683 18,371 18,669 
Operating lease right-of-use assets3,823 3,873 3,891 
Long-term investments 202 363 372 
Deferred income taxes – net241 479 216 
Other assets1,015 1,016 1,005 
Total assets$50,880 $39,764 $39,471 
Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings$ $637 $1,941 
Current maturities of long-term debt609 574 597 
Current operating lease liabilities530 499 501 
Accounts payable12,759 8,822 7,659 
Accrued compensation and employee benefits 1,117 779 684 
Deferred revenue1,614 1,222 1,219 
Other current liabilities2,935 2,530 2,581 
Total current liabilities19,564 15,063 15,182 
Long-term debt, excluding current maturities 21,185 16,635 16,768 
Noncurrent operating lease liabilities3,907 3,942 3,943 
Deferred revenue – extended protection plans1,007 875 894 
Other liabilities 1,144 791 712 
Total liabilities46,807 37,306 37,499 
Shareholders' equity:
Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and
   outstanding – none
   
Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and
   outstanding – 752 million, 768 million, and 763 million shares, respectively
376 384 381 
Capital in excess of par value   
Retained earnings3,942 2,238 1,727 
Accumulated other comprehensive loss(245)(164)(136)
Total shareholders' equity4,073 2,458 1,972 
Total liabilities and shareholders' equity$50,880 $39,764 $39,471 
See accompanying notes to the consolidated financial statements (unaudited).
1

Table of Contents
Lowe’s Companies, Inc.
Consolidated Statements of Earnings (Unaudited)
In Millions, Except Per Share and Percentage Data
 Three Months EndedNine Months Ended
 October 30, 2020November 1, 2019October 30, 2020November 1, 2019
Current EarningsAmount% SalesAmount% SalesAmount% SalesAmount% Sales
Net sales$22,309 100.00 %$17,388 100.00 %$69,286 100.00 %$56,121 100.00 %
Cost of sales15,009 67.28 11,748 67.56 46,170 66.64 38,159 67.99 
Gross margin7,300 32.72 5,640 32.44 23,116 33.36 17,962 32.01 
Expenses:
Selling, general and administrative4,770 21.38 3,772 21.69 13,985 20.18 11,682 20.82 
Depreciation and amortization355 1.59 310 1.79 1,008 1.46 924 1.65 
Operating income2,175 9.75 1,558 8.96 8,123 11.72 5,356 9.54 
Interest – net221 0.99 177 1.02 644 0.93 508 0.90 
Loss on extinguishment of debt1,060 4.75   1,060 1.53   
Pre-tax earnings894 4.01 1,381 7.94 6,419 9.26 4,848 8.64 
Income tax provision 202 0.91 332 1.90 1,562 2.25 1,077 1.92 
Net earnings$692 3.10 %$1,049 6.04 %$4,857 7.01 %$3,771 6.72 %
Weighted average common shares outstanding basic
752 769 753 782 
Basic earnings per common share
$0.92 $1.36 $6.42 $4.81 
Weighted average common shares outstanding diluted
754 770 754 783 
Diluted earnings per common share
$0.91 $1.36 $6.41 $4.80 
See accompanying notes to the consolidated financial statements (unaudited).



Lowe’s Companies, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
In Millions, Except Percentage Data
 Three Months EndedNine Months Ended
 October 30, 2020November 1, 2019October 30, 2020November 1, 2019
 Amount% SalesAmount% SalesAmount% SalesAmount% Sales
Net earnings$692 3.10 %$1,049 6.04 %$4,857 7.01 %$3,771 6.72 %
Foreign currency translation adjustments net of tax
18 0.08 24 0.13 (27)(0.04)60 0.11 
Cash flow hedges net of tax
24 0.11 (1) (84)(0.12)(15)(0.03)
Other
(2)(0.01)  2    
Other comprehensive income/(loss)
40 0.18 23 0.13 (109)(0.16)45 0.08 
Comprehensive income$732 3.28 %$1,072 6.17 %$4,748 6.85 %$3,816 6.80 %
See accompanying notes to the consolidated financial statements (unaudited).
2

Table of Contents
Lowe’s Companies, Inc.
Consolidated Statements of Shareholders’ Equity (Unaudited)
In Millions
Three Months Ended October 30, 2020
Common StockCapital in Excess
of Par Value
Retained EarningsAccumulated Other
Comprehensive Loss
Total Shareholders’ Equity
SharesAmount
Balance July 31, 2020756 $378 $129 $4,134 $(285)$4,356 
Net earnings— — — 692 — 692 
Other comprehensive income— — — — 40 40 
Cash dividends declared, $0.60 per share
— — — (452)— (452)
Share-based payment expense — — 39 — — 39 
Repurchases of common stock (4)(2)(187)(432)— (621)
Issuance of common stock under share-based payment plans  19 — — 19 
Balance October 30, 2020752 $376 $ $3,942 $(245)$4,073 
Nine Months Ended October 30, 2020
Common StockCapital in Excess
of Par Value
Retained EarningsAccumulated Other
Comprehensive Loss
Total Shareholders’ Equity
SharesAmount
Balance January 31, 2020763 $381 $ $1,727 $(136)$1,972 
Net earnings— — — 4,857 — 4,857 
Other comprehensive loss— — — — (109)(109)
Cash dividends declared, $1.70 per share
— — — (1,284)— (1,284)
Share-based payment expense — — 103 — — 103 
Repurchases of common stock (13)(6)(203)(1,358)— (1,567)
Issuance of common stock under share-based payment plans2 1 100 — — 101 
Balance October 30, 2020752 $376 $ $3,942 $(245)$4,073 
3

Table of Contents
Three Months Ended November 1, 2019
Common StockCapital in Excess
of Par Value
Retained EarningsAccumulated Other
Comprehensive Loss
Total Shareholders’ Equity
SharesAmount
Balance August 2, 2019776 $388 $ $2,439 $(187)$2,640 
Net earnings— — — 1,049 — 1,049 
Other comprehensive income— — — — 23 23 
Cash dividends declared, $0.55 per share
— — — (423)— (423)
Share-based payment expense — — 20 — — 20 
Repurchases of common stock (8)(4)(27)(827)— (858)
Issuance of common stock under share-based payment plans — 7 — — 7 
Balance November 1, 2019768 $384 $ $2,238 $(164)$2,458 
Nine Months Ended November 1, 2019
Common StockCapital in Excess
of Par Value
Retained EarningsAccumulated Other
Comprehensive Loss
Total Shareholders’ Equity
SharesAmount
Balance February 1, 2019801 $401 $ $3,452 $(209)$3,644 
Cumulative effect of accounting change— — — (263)— (263)
Net earnings— — — 3,771 — 3,771 
Other comprehensive income— — — — 45 45 
Cash dividends declared, $1.58 per share
— — — (1,233)— (1,233)
Share-based payment expense — — 72 — — 72 
Repurchases of common stock (36)(18)(148)(3,489)— (3,655)
Issuance of common stock under share-based payment plans3 1 76 — — 77 
Balance November 1, 2019768 $384 $ $2,238 $(164)$2,458 
See accompanying notes to the consolidated financial statements (unaudited).

4

Table of Contents
Lowe’s Companies, Inc.
Consolidated Statements of Cash Flows (Unaudited)
In Millions
Nine Months Ended
October 30, 2020November 1, 2019
Cash flows from operating activities:
Net earnings $4,857 $3,771 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization1,152 1,029 
Noncash lease expense356 341 
Deferred income taxes5 (88)
Loss on property and other assets – net114 93 
Loss on extinguishment of debt1,060  
Share-based payment expense107 75 
Changes in operating assets and liabilities:
Merchandise inventory – net(2,545)(1,129)
Other operating assets147 (96)
Accounts payable 5,099 523 
Other operating liabilities1,133 (408)
Net cash provided by operating activities11,485 4,111 
Cash flows from investing activities:
Purchases of investments(2,548)(563)
Proceeds from sale/maturity of investments1,032 556 
Capital expenditures(1,172)(927)
Proceeds from sale of property and other long-term assets60 71 
Other – net(24) 
Net cash used in investing activities(2,652)(863)
Cash flows from financing activities:
Net change in commercial paper(941)(85)
Net proceeds from issuance of debt7,929 2,972 
Repayment of debt(5,582)(1,092)
Proceeds from issuance of common stock under share-based payment plans102 78 
Cash dividend payments(1,252)(1,195)
Repurchases of common stock(1,528)(3,649)
Other – net(32)(7)
Net cash used in financing activities(1,304)(2,978)
Effect of exchange rate changes on cash4 1 
Net increase in cash and cash equivalents, including cash classified within current assets
held for sale
7,533 271 
Less: Net decrease in cash classified within current assets held for sale 12 
Net increase in cash and cash equivalents7,533 283 
Cash and cash equivalents, beginning of period716 511 
Cash and cash equivalents, end of period$8,249 $794 
See accompanying notes to the consolidated financial statements (unaudited).
5

Table of Contents
Lowe’s Companies, Inc.
Notes to Consolidated Financial Statements (Unaudited)

Note 1: Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements (unaudited) and notes to the condensed 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 (GAAP). The condensed consolidated financial statements (unaudited), in the opinion of management, contain all normal recurring adjustments necessary to present fairly the financial position as of October 30, 2020, and November 1, 2019, the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended October 30, 2020, and November 1, 2019, and cash flows for the nine months ended October 30, 2020, and November 1, 2019. The January 31, 2020 consolidated balance sheet was derived from the audited financial statements.

These interim condensed 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 January 31, 2020 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.

Impacts of COVID-19

On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. In response to the COVID-19 pandemic, federal, state and local governments put in place travel restrictions, quarantines, “shelter-in-place” orders, and various other restrictive measures in an attempt to control the spread of the disease. Such restrictions or orders have resulted in, and continue to result in, business closures, work stoppages, slowdowns and delays, among other effects that impact the Company’s operations, as well as customer demand and the operations of our suppliers.

At the onset of the pandemic, the Company implemented a number of measures to facilitate a safer store environment and to provide support for its associates, customers and community. During the first quarter, the Company expanded associate benefits in response to COVID-19 to provide additional paid time off, special payments to hourly associates, temporary wage increases and other benefits. During the second and third quarters of 2020, the Company provided additional bonus payments to hourly associates, in addition to continued enhanced cleaning protocols and charitable contributions. These actions resulted in $288 million and $1.0 billion of expense included in selling, general and administrative (SG&A) expense in the consolidated statements of earnings for the three and nine months ended October 30, 2020, respectively.

Also in response to the uncertainties surrounding COVID-19, during the first quarter of 2020, the Company took proactive steps to further enhance its liquidity position by temporarily suspending its share repurchase program, increasing the capacity of its revolving credit facilities and the associated commercial paper program, as well as issuing senior notes in March 2020. During the third quarter, the Company reinstated its previously authorized share repurchase program.

The Company continues to evaluate the carrying amounts of its long-lived assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable, including potential market impacts from the COVID-19 pandemic. The Company performed its quarterly assessment of long-lived assets and did not record any material long-lived asset impairments.

In addition, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), which was enacted on March 27, 2020, includes measures to assist companies in response to the COVID-19 pandemic. In accordance with the CARES Act, the Company has deferred the payment of qualifying employer payroll taxes which are required to be paid over two years, with half due by December 31, 2021 and the other half due by December 31, 2022. As of October 30, 2020, the Company deferred $407 million of qualifying employer payroll taxes which is included in other liabilities in the consolidated balance sheet and included in cash flows from other operating liabilities in the consolidated statement of cash flows.

6

Table of Contents
Reclassifications

Certain prior period amounts have been reclassified to conform to current period presentation, including the addition of cash flow hedges – net of tax on the consolidated statements of comprehensive income, and the inclusion of goodwill within other assets on the consolidated balance sheets.

Accounting Pronouncements Not Yet Adopted

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting. The ASU provides practical expedients for contract modification accounting related to the transition away from the London Interbank Offered Rate (LIBOR) and other interbank offering rates to alternative reference rates. The expedients are applicable to contract modifications made and hedging relationships entered into on or before December 31, 2022. The Company intends to use the expedients where needed for reference rate transition. The Company continues to evaluate this standard update and does not expect a material impact to the Company’s financial statements or disclosures.

Recent accounting pronouncements pending adoption not discussed in this Form 10-Q or in the 2019 Form 10-K are either not applicable to the Company or are not expected to have a material impact on the Company.

Note 2: Revenue - Net sales consists primarily of revenue, net of sales tax, associated with contracts with customers for the sale of goods and services in amounts that reflect consideration the Company is entitled to in exchange for those goods and services.

The following table presents the Company’s sources of revenue:
(In millions)Three Months EndedNine Months Ended
October 30, 2020November 1, 2019October 30, 2020November 1, 2019
Products $21,342 $16,379 $66,724 $53,259 
Services552 545 1,459 1,690 
Other415 464 1,103 1,172 
Net sales$22,309 $17,388 $69,286 $56,121 

A provision for anticipated merchandise returns is provided through a reduction of sales and cost of sales in the period that the related sales are recorded.  The merchandise return reserve is presented on a gross basis, with a separate asset and liability included in the consolidated balance sheets. Anticipated sales returns reflected in other current liabilities were $281 million at October 30, 2020, $227 million at November 1, 2019, and $194 million at January 31, 2020. The associated right of return assets reflected in other current assets were $180 million at October 30, 2020, $148 million at November 1, 2019, and $129 million at January 31, 2020.
Deferred revenue - retail
The deferred revenues associated with amounts received for which customers have not taken possession of the merchandise or for which installation has not yet been completed were $1.2 billion at October 30, 2020, $778 million at November 1, 2019, and $685 million at January 31, 2020. The majority of revenue for goods and services is recognized in the quarter following revenue deferral.
Deferred revenue - stored-value cards
The deferred revenues associated with outstanding stored-value cards (gift cards and returned merchandise credits) were $439 million, $444 million, and $534 million at October 30, 2020, November 1, 2019, and January 31, 2020, respectively, and these amounts are included in deferred revenue on the consolidated balance sheets. Amounts recognized as breakage were insignificant for the three and nine months ended October 30, 2020, and November 1, 2019.
7

Table of Contents
Deferred revenue - extended protection plans
The deferred revenues from separately priced extended protection plans were $1.0 billion, $875 million, and $894 million at October 30, 2020, November 1, 2019, and January 31, 2020, respectively. Revenue recognized into sales were $106 million and $314 million for the three and nine months ended October 30, 2020, respectively, and $103 million and $303 million for the three and nine months ended November 1, 2019, respectively. Incremental direct acquisition costs associated with the sale of extended protection plans for contracts greater than one year are also deferred and recognized as expense on a straight-line basis over the respective contract term and were insignificant at October 30, 2020, and November 1, 2019. 
The liability for extended protection plan claims incurred is included in other current liabilities on the consolidated balance sheets and was not material in any of the periods presented.  Expenses for claims are recognized in cost of sales when incurred and totaled $43 million and $121 million for the three and nine months ended October 30, 2020, respectively, and $45 million and $141 million for the three and nine months ended November 1, 2019, respectively.

Disaggregation of Revenues

The following table presents the Company’s net sales disaggregated by merchandise division:
Three Months EndedNine Months Ended
October 30, 2020November 1, 2019October 30, 2020November 1, 2019
(In millions)Net Sales%Net Sales%Net Sales%Net Sales%
Home Décor 1
$8,168 36.6 %$6,490 37.3 %$23,855 34.4 %$19,929 35.5 %
Building Products 2
7,587 34.0 5,794 33.3 21,527 31.1 17,405 31.0 
Hardlines 3
6,013 27.0 4,551 26.2 22,466 32.4 17,235 30.7 
Other541 2.4 553 3.2 1,438 2.1 1,552 2.8 
Total$22,309 100.0 %$17,388 100.0 %$69,286 100.0 %$56,121 100.0 %
Note: Merchandise division net sales for the prior period have been reclassified to conform to the current period presentation.
1    Home Décor includes the following product categories: Appliances, Décor, Flooring, Kitchens & Bath, and Paint
2    Building Products includes the following product categories: Building Materials, Electrical, Lighting, Lumber, Millwork, and Rough Plumbing
3    Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools

The following table presents the Company’s net sales disaggregated by geographical area:
(In millions)Three Months EndedNine Months Ended
October 30, 2020November 1, 2019October 30, 2020November 1, 2019
United States$20,832 $16,131 $65,153 $52,225 
International1,477 1,257 4,133 3,896 
Net Sales$22,309 $17,388 $69,286 $56,121 

Note 3: Investments - Available-for-sale debt securities are recorded at fair value, and unrealized gains and losses are recorded, net of tax, as a component of accumulated other comprehensive loss. Net unrealized gains on available-for-sale debt securities as of October 30, 2020, November 1, 2019, and January 31, 2020, were not material. Refer to Note 4 for the fair value of the Company’s available-for-sale debt securities by investment type.

Held-to-maturity securities are U.S. Treasury bills which the Company has the ability and intent to hold until maturity and are stated at amortized cost. Gross unrecognized holding gains and losses on the Company’s held-to-maturity securities were not material as of October 30, 2020.

8

Table of Contents
The Company’s investments are as follows:
(In millions)October 30, 2020November 1, 2019January 31, 2020
Short-term investments:
Available-for-sale debt securities$702 127 $160 
Held-to-maturity securities1,150   
Total short-term investments$1,852 $127 $160 
Long-term investments:
Available-for-sale debt securities$202 $363 $372 
Total long-term investments$202 $363 $372 

The maturities of available-for-sale and held-to-maturity securities at October 30, 2020, are as follows:
Available-for-Sale
(In millions)Cost BasisFair ValueHeld-to-Maturity
Due in one year or less$699 $702 $1,150 
Due after one year through five years198 202  
Total$897 $904 $1,150 

Restricted Investments

Short-term and long-term investments include restricted balances pledged as collateral primarily for the Company’s extended protection plan program. Restricted balances included in short-term investments were $402 million at October 30, 2020, $127 million at November 1, 2019, and $160 million at January 31, 2020.

Restricted balances included in long-term investments were $202 million at October 30, 2020, $363 million at November 1, 2019, and $372 million at January 31, 2020.

Note 4: Fair Value Measurements - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows:
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

9

Table of Contents
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of October 30, 2020, November 1, 2019, and January 31, 2020.
Fair Value Measurements at
(In millions)Measurement LevelOctober 30, 2020November 1, 2019January 31, 2020
Assets:
Short-term investments:
Available-for-sale debt securities
Certificates of depositLevel 1$300 $ $ 
U.S. Treasury notesLevel 1220 13 13 
Money market fundsLevel 196 83 105 
Corporate debt securitiesLevel 249 12 23 
Agency securitiesLevel 237 19 19 
Total short-term investments$702 $127 $160 
Long-term investments:
Available-for-sale debt securities
U.S. Treasury notesLevel 1$140 $258 $280 
Corporate debt securitiesLevel 252 75 62 
Municipal obligationsLevel 210   
Agency securitiesLevel 2 30 30 
Total long-term investments$202 $363 $372 
Liabilities:
Other current liabilities:
Derivative instruments
Forward interest rate swapsLevel 2$9 $ $11 
Total other current liabilities$9 $ $11 
Other liabilities:
Derivative instruments