beatandraise : SEC Filings Research with AI

��ࡱ�>�� t�� !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrs��Root Entry��:�:�u@Workbook��SummaryInformation(��DocumentSummaryInformation8�� F��\psshxbrlB�a�=" ��=�ZL,�8X@�"��1��Tahoma1��Tahoma1��Tahoma1��Tahoma1��Tahoma1��!Tahoma7"$"#,##0_);\( "$"#,##0\ )A"$"#,##0_);[Red]\( "$"#,##0\ )C"$"#,##0.00_);\( "$"#,##0.00\ )M$"$"#,##0.00_);[Red]\( "$"#,##0.00\ )q*6_("$"* #,##0_);_("$"* \( #,##0\ );_("$"* "-"_);_( @_ )_)-_(* #,##0_);_(* \( #,##0\ );_(* "-"_);_( @_ )�,>_("$"* #,##0.00_);_("$"* \( #,##0.00\ );_("$"* "-"??_);_( @_ )o+5_(* #,##0.00_);_(* \( #,##0.00\ );_(* "-"??_);_( @_ )#�$#,##0;($#,##0)� #,##0;(#,##0)+�#,##0.##;(#,##0.##)�� A �� A �� A �� A �� A �� A �� A �� A �� A �� A �� A �� A �� A �� A � � �+�� A �)�� A �,�� A �*�� A � �� A � � �(� �*� �(� � � � (� � � �� `�F�Document and Entity Information�>��Consolidated Balance Sheets�BI�1_Consolidated Balance Sheets�B��2_Consolidated Balance Sheets�F�Consolidated Statements of Curr�F��3_Consolidated Statements of Cu�F_�Consolidated Statements of Cash�2`�Basis of Presentation�FS�Fair Value Measurements and Fin�DF�Restricted Investment Balances�9�Property�$,�Long-Term Debt�.�Extended Warranties�.�Shareholders Equity�0�Comprehensive Income�,��Earnings Per Share�8��Supplemental Disclosures��T�� 'Document and Entity Information (USD $)3 Months Ended Apr. 30, 2010 May. 28, 2010 Jul. 31, 2009 (Entity And Document Information AbstractEntity registrant nameLOWES COMPANIES INC,Entity central index key 0000060667 Document type10-QDocument period end date 2010-04-30Amendment flagfalseCurrent fiscal year end date--01-28!Entity well known seasoned issuerYesEntity voluntary filersNoEntity current reporting statusYes Entity filer categoryLarge Accelerated FilerEntity public float&Entity common stock shares outstandingDocument Fiscal Year FocusDocument Fiscal Period FocusQ1#Consolidated Balance Sheets (USD $)In MillionsApr. 30, 2010 Jan. 29, 2010 May. 01, 2009 AssetsCash and cash equivalentsShort-term investmentsMerchandise inventory - netDeferred income taxes - netOther current assetsTotal current assets'Property, less accumulated depreciationLong-term investmentsOther assetsTotal assets$Liabilities and Shareholders' Equity$Current maturities of long-term debtAccounts payable*Accrued compensation and employee benefitsDeferred revenueOther current liabilitiesTotal current liabilities,Long-term debt, excluding current maturitiesOther liabilitiesTotal liabilities+Preferred stock - $5 par value, none issuedCommon stock - $.50 par valueCapital in excess of par valueRetained earnings&Accumulated other comprehensive incomeTotal shareholders' equity*Total liabilities and shareholders' equity3Consolidated Balance Sheets (Par Value Disclosures)Shareholders' equity:GConsolidated Balance Sheets (Shares Issued and Outstanding Disclosures)Share data in Millions.Preferred stock; shares issued and outstanding+Common stock; shares issued and outstanding@Consolidated Statements of Current and Retained Earnings (USD $)'In Millions, unless otherwise specified3 Months Ended May. 01, 2009 Current Earnings Net sales Cost of salesGross margin Expenses:#Selling, general and administrativeDepreciationInterest - netTotal expensesPre-tax earningsIncome tax provisionNet earnings2Weighted average common shares outstanding - basicBasic earnings per common share4Weighted average common shares outstanding - diluted!Diluted earnings per common shareCash dividends per shareRetained EarningsBalance at beginning of periodCash dividendsShare repurchasesBalance at end of periodCConsolidated Statements of Current and Retained Earnings (Percents) Net Sales Cost of Sales-Consolidated Statements of Cash Flows (USD $)%Cash flows from operating activities:SAdjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortizationDeferred income taxes'Loss on property and other assets - netShare-based payment expense0Net changes in operating assets and liabilities:Other operating assetsOther operating liabilities)Net cash provided by operating activities%Cash flows from investing activities:#Purchases of short-term investments5Proceeds from sale/maturity of short-term investments"Purchases of long-term investments4Proceeds from sale/maturity of long-term investments-(Increase) decrease in other long-term assetsProperty acquired9Proceeds from sale of property and other long-term assets%Net cash used in investing activities%Cash flows from financing activities:%Net decrease in short-term borrowings(Proceeds from issuance of long-term debtRepayment of long-term debtCProceeds from issuance of common stock from stock options exercisedCash dividend paymentsRepurchase of common stock3Net cash provided by (used in) financing activities'Effect of exchange rate changes on cash)Net increase in cash and cash equivalents.Cash and cash equivalents, beginning of period(Cash and cash equivalents, end of periodBasis of Presentation*Notes to Consolidated Financial Statements� Note 1: Basis of Presentation - The accompanying consolidated financial statements (unaudited) and notes to consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exch< ange 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 April 30, 2010, and May 1, 2009, and the results of operations and cash flows for the three months ended April 30, 2010, and May 1, 2009. 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 January 29, 2010 (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. For the three months ended May 1, 2009, store opening costs of $13 million, which were previously reported as a single line item on the consolidated statements of current and retained earnings, have been combined with selling, general and administrative expenses. This change was not material and had no impact on the consolidated balance sheets or statements of cash flows for any of the periods presented.The long-term portion of the self-insurance liabilities, primarily for workers compensation, automobile, property, and general and product liability claims, of $469 million at May 1, 2009, previously classified as current on the consolidated balance sheets, has been reclassified to other liabilities (non-current). The current portion of these self-insurance liabilities, previously reported as a single line item on the consolidated balance sheets, has been combined with other current liabilities. The non-current portion of deferred income taxes related to these self-insurance liabilities has also been reclassified from current to non-current deferred income taxes in the consolidated balance sheets.These changes were not material and had no impact on the consolidated statements of current and retained earnings or cash flows for any of the periods presented.1Fair Value Measurements and Financial Instruments� Note 2: Fair Value Measurements and Financial Instruments - 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 The following tables present the Companys financial assets measured at fair value on a recurring basis as of April 30, 2010, May 1, 2009, and January 29, 2010, classified by fair value hierarchy: 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 30, 2010 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Municipal Bonds $ 276 $ - $ 276 $ - Municipal Variable Rate Demand Obligations 261 - 261 - Money Market Funds 84 84 - - Other 7 2 5 - Trading securities: Mutual Funds 47 47 - - Total short-term investments $ 675 $ 133 $ 542 $ - Available-for-sale securities: Municipal Bonds $ 832 $ - $ 832 $ - Total long-t< erm investments $ 832 $ - $ 832 $ - 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 1, 2009 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Municipal Bonds $ 346 $ - $ 346 $ - Money Market Funds 66 66 - - Other 15 2 13 - Trading securities: Mutual Funds 33 33 - - Total short-term investments $ 460 $ 101 $ 359 $ - Available-for-sale securities: Municipal Bonds $ 448 $ - $ 448 $ - Total long-term investments $ 448 $ - $ 448 $ - Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) January 29, 2010 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Municipal Bonds $ 303 $ - $ 303 $ - Money Market Funds 68 68 - - Other 12 2 10 - Trading securities: Mutual Funds 42 42 - - Total short-term investments $ 425 $ 112 $ 313 $ - Available-for-sale securities: Municipal Bonds $ 277 $ - $ 277 $ - Total long-term investments $ 277 $ - $ 277 $ - When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. When quoteRestricted Investment BalancesW Note 3: Restricted Investment Balances - Short-term and long-term investments include restricted balances pledged as collateral for letters of credit for the Companys extended warranty program and for a portion of the Companys casualty insurance and Installed Sales program liabilities. Restricted balances included in short-term investments were $211 million at both April 30, 2010 and May 1, 2009, and $186 million at January 29, 2010. Restricted balances included in long-term investments were $177 million at April 30, 2010, $144 million at May 1, 2009, and $202 million at January 29, 2010. Property� Note 4: Property - Property is shown net of accumulated depreciation of $10.2 billion at April 30, 2010, $9.1 billion at May 1, 2009, and $9.8 billion at January 29, 2010.Long-Term Debt� Note 5: Long-Term Debt - In April 2010, the Company issued $1.0 billion of unsecured senior notes, comprised of two tranches: $500 million of 4.625% senior notes maturing in April 2020 and $500 million of 5.800% senior notes maturing in April 2040 (collectively, the Senior Notes). The 4.625% and 5.800% Senior Notes were issued at discounts of approximately $3.2 million and $4.8 million, respectively. Interest on the Senior Notes is payable semiannually in arrears in April and October of each year until maturity, beginning in October 2010. The discount associated with the issuance is included in long-term debt and is being amortized over the respective terms of the Senior Notes. The Senior Notes may be redeemed by the Company at any time, in whole or in part, at a redemption price plus accrued interest to the date of redemption. The redemption price before six months prior to the applicable maturity date is equal to the greater of (1) 100% of the principal amount of the Senior Notes to be redeemed, or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the date of redemption on a semi-annual basis at a specified rate. The redemption price within six months prior to the applicable maturity date is equal to 100% of the principal amount of the Senior Notes to be redeemed plus accrued interest thereon to but excluding the date of redemption. The indenture under which the notes were issued also contains a provision that allows the holders of the notes to require the Company to repurchase all or any part of their notes if a change of control triggering event occurs. If elected under the change in control provisions, the repurchase of the notes will occur at a purchase price of 101% of the principal amount, plus accrued and unpaid i< nterest, if any, on such notes to the date of purchase. The indenture governing the Senior Notes does not limit the aggregate principal amount of debt securities that the Company may issue, nor is the Company required to maintain financial ratios or specified levels of net worth or liquidity. However, the indenture contains various restrictive covenants, none of which is expected to impact the Companys liquidity or capital resources.Extended Warranties Note 6: Extended Warranties The Company sells separately-priced extended warranty contracts under a Lowes-branded program for which the Company is ultimately self-insured. The Company recognizes revenue from extended warranty sales on a straight-line basis over the respective contract term. Extended warranty contract terms primarily range from one to four years from the date of purchase or the end of the manufacturers warranty, as applicable. The Companys extended warranty deferred revenue is included in other liabilities (non-current) on the consolidated balance sheets. Changes in deferred revenue for extended warranty contracts are summarized as follows: Three Months Ended (In millions) April 30, 2010 May 1, 2009 Extended warranty deferred revenue, beginning of period $ 549 $ 479 Additions to deferred revenue 68 52 Deferred revenue recognized (41) (35) Extended warranty deferred revenue, end of period $ 576 $ 496 Incremental direct acquisition costs associated with the sale of extended warranties are also deferred and recognized as expense on a straight-line basis over the respective contract term. Deferred costs associated with extended warranty contracts were $159 million at April 30, 2010, $129 million at May 1, 2009, and $150 million at January 29, 2010. The Companys extended warranty deferred costs are included in other assets (non-current) on the consolidated balance sheets. All other costs, such as costs of services performed under the contract, general and administrative expenses and advertising expenses, are expensed as incurred.The liability for extended warranty claims incurred is included in other current liabilities on the consolidated balance sheets. Changes in the liability for extended warranty claims are summarized as follows: Three Months Ended (In millions) April 30, 2010 May 1, 2009 Liability for extended warranty claims, beginning of period $ 23 $ 17 Accrual for claims incurred 17 13 Claim payments (17) (12) Liability for extended warranty claims, end of period $ 23 $ 18Shareholders EquityShareholders' Equity Note 7: Shareholders' Equity - The Company has a share repurchase program that is implemented through purchases made from time to time either in the open market or through private transactions. Shares purchased under the share repurchase program are retired and returned to authorized and unissued status. Authorization for up to $5 billion of share repurchases with no expiration was approved by the Companys Board of Directors on January 29, 2010. The Company repurchased 18.6 million shares under the share repurchase program at a total cost of $450 million (of which $420 million was recorded as a reduction in retained earnings, after capital in excess of par value was depleted) during the first quarter of fiscal 2010. No shares were repurchased under the share repurchase program during the first quarter of fiscal 2009. As of April 30, 2010, the Company had remaining authorization under the share repurchase program of $4.6 billion. The Company also repurchased 0.6 million shares at a total cost of $15 million from employees to satisfy either the exercise price of stock options or their statutory withholding tax liability based upon the vesting of restricted share-based awards during the first quarter of fiscal 2010, and an insignificant amount during the first quarter of fiscal 2009. Comprehensive Incomen Note 8: Comprehensive Income - Comprehensive income represents changes in shareholders equity from non-owner sources and is comprised of net earnings plus or minus unrealized gains or losses on available-for-<�sale securities and foreign currency translation adjustments. The following table reconciles net earnings to comprehensive income for the three months ended April 30, 2010, and May 1, 2009. Three Months Ended (In millions) April 30, 2010 May 1, 2009 Net earnings $ 489 $ 476 Foreign currency translation adjustments 19 12 Net unrealized investment losses (1) (1) Comprehensive income $ 507 $ 487Earnings Per ShareF Note 9: Earnings Per Share The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net earnings for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per common share for the three months ended April 30, 2010, and May 1, 2009. Three Months Ended (In millions, except per share data) April 30, 2010 May 1, 2009 Basic earnings per common share: Net earnings $ 489 $ 476 Less: Net earnings allocable to participating securities (4) (4) Net earnings allocable to common shares $ 485 $ 472 Weighted-average common shares outstanding 1,438 1,462 Basic earnings per common share $ 0.34 $ 0.32 Diluted earnings per common share: Net earnings $ 489 $ 476 Less: Net earnings allocable to participating securities (4) (4) Net earnings allocable to common shares $ 485 $ 472 Weighted-average common shares outstanding 1,438 1,462 Dilutive effect of non-participating share-based awards 3 2 Weighted-average common shares, as adjusted 1,441 1,464 Diluted earnings per common share $ 0.34 $ 0.32 Stock options to purchase 17.2 million and 26.0 million shares of common stock were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive for the three months ended April 30, 2010, and May 1, 2009, respectively. Supplemental DisclosuresSupplemental DisclosureU Note 10: Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended (In millions) April 30, 2010 May 1, 2009 Long-term debt $ 75 $ 73 Short-term borrowings - 2 Capitalized lease obligations 9 7 Interest income (2) (5) Interest capitalized (3) (4) Interest on tax uncertainties 2 3 Other 1 2 Interest - net $ 82 $ 78 Supplemental disclosures of cash flow information: Three Months Ended (In millions) April 30, 2010 May 1, 2009 Cash paid for interest, net of amount capitalized $ 130 $ 130 Cash paid for income taxes $ 100 $ 68 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 23 $ 54 Loss on equity method investments $ (1) $ (1) Cash dividends declared but not paid $ 130 $ -��u�e�u��DA��,�� o� f"��$4�'�*fC]O.� F�� d��MbP?_*+��%��" dFXX�?�?U}�<}�}�$ �� B� ��K�A� ~ h�@� � �&4@4 >�@�dd�7 F��ĵ d��MbP?_*+��%��" dFXX�?�?U}�<}�}�$ �� !� "� #� $��@��@P�@� %��@�z@�|@� &��U�@��@��@� '�@i@j@�^@� (�@n@@k@�p@� )��@�@��@� *� ��@��@�.�@� +� �@Pq@|@� ,��@@�{@� -��D�@��@��@� .� /��@@�@J@� 0��@��@Ӷ@� 1��@�@��@� 2�(�@X�@(�@� 3��@��@p�@� 4��@�@��@��@� 5��@��@��@� '�H�@��@��@� 6�ؖ@��@0�@� 7��@8�@��@� 8�� 9��@Ȇ@�@� :�@@�r@� ;��@��@��@� <��F@;@@� =��@@��@@�@� >��D�@��@��@�B<X8**************************>�@�dd�7 F��U� d��MbP?_*+��%��" dFXX�?�?U}�<}�}�$ �� ?� � !� "� @� 8�@@@� 9� �? �? �?�P4*>�@�dd�7 F�� d��MbP?_*+��%��" dFXX�?�?U}�<}�}�$ �� A� B� � !� "� @� C�� D��@̖@�@�P8*>�@�dd�7 F��1� d��MbP?_*+��%��" dFXX�?�?U}�<}�}�$ �� E� F� � G� H� I�2�@�@� J�^�@Խ@� K��@d�@� L� M�*�@�@� N��x@y@� O� �T@�S@� P� �@ت@� Q��@��@� R��r@�q@� S� �~@�}@� T�x�@ؖ@� U� A@ @@� V��@��@� W� A@ @@� X� "@ !@� Y� Z��@@��@� S��~@�}@� [�@`��_�� \�@z�� ]��@��@�6&�*$$$$$$$$$$$$$$$$$$$>�@�dd�7 F�� d��MbP?_*+��%��" dFXX�?�?U}�<}�}�$ �� ^� � G� H� _��?�?� ` �(� ��? ,Ԛ��?� K 2�%��? �W�2ı�?� L� M �8EGr��? x��#��?� N ��Mb�? z6�>W[�?� O F%u�{? 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