Revenue (Tables)

3 Months Ended

May 03, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Revenue Sources

The following table presents the Company’s sources of revenue:

(In millions)	Three Months Ended
	May 3, 2024		May 5, 2023
Products	$	20,691	$	21,572
Services	532		528
Other	141		247
Net sales	$	21,364	$	22,347

Schedule of Anticipated Sales and Right of Return Assets

The balances and classification within the consolidated balance sheets for anticipated sales returns and the associated right of return assets are as follows:

(In millions)	Classification	May 3, 2024		May 5, 2023		February 2, 2024
Anticipated sales returns	Other current liabilities	$	280	$	318	$	191
Right of return assets	Other current assets	164		185		111

Schedule of Deferred Revenue

Deferred revenue for retail and stored-value cards are as

follows:

(In millions)	May 3, 2024		May 5, 2023		February 2, 2024
Retail deferred revenue	$	889	$	1,063	$	796
Stored-value cards deferred revenue	520		582		612
Deferred revenue	$	1,409	$	1,645	$	1,408

Deferred revenue - Lowe’s protection plans

The Company defers revenues for its separately-priced long-term extended protection plan contracts (Lowe’s protection plans) and recognizes revenue on a straight-line basis over the respective contract term. Expenses for claims are recognized in cost of sales when incurred.

(In millions)	May 3, 2024		May 5, 2023		February 2, 2024
Deferred revenue - Lowe’s protection plans	$	1,225	$	1,206	$	1,225

	Three Months Ended
(In millions)	May 3, 2024		May 5, 2023
Lowe’s protection plans deferred revenue recognized into sales	$	139	$	136
Lowe’s protection plans claim expenses	54		53

Schedule of Disaggregated Revenue

The following table presents the Company’s net sales disaggregated by merchandise division:

	Three Months Ended
	May 3, 2024				May 5, 2023
(In millions)	Net Sales		%		Net Sales		%
Home Décor 1	$	7,683	36.0	%	$	8,240	36.9	%
Building Products 2	6,643		31.1		6,855		30.7
Hardlines 3	6,628		31.0		6,748		30.2
Other	410		1.9		504		2.2
Total	$	21,364	100.0	%	$	22,347	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, Lumber, Millwork, and Rough Plumbing.

3    Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools.