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2.0.0.10 false Extended Warranties 00700 - Disclosure - Extended Warranties true false false false 1 usd $ false false Percent Standard http://www.xbrl.org/2003/instance pure xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Notes to Consolidated Financial Statements 0 low_NotesToConsolidatedFinancialStatements low false na duration string Notes to Consolidated Financial Statements Header false false false false false true false false false false false false 1 false false false false 0 0 false false false Notes to Consolidated Financial Statements Header false 3 Extended Warranties 1 us-gaap_ProductWarrantyDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div style="font-size:12pt">Note 6: Extended Warranties – The Company sells separately-priced extended warranty contracts under a Lowe’s-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 manufacturer’s warranty, as applicable. The Company’s 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:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="20" width="355" align="left"> </td><td height="20" style="border-bottom: 1px solid #000000;" align="left" width="14"> </td><td width="224" align="center" colspan="3" style="border-bottom: 1px solid #000000;" height="20">Three Months Ended</td></tr><tr><td height="20" style="border-bottom: 1px solid #000000;" align="left" width="355">(In millions)</td><td height="20" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="14"> </td><td height="20" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="105">April 30, 2010</td><td width="119" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="20">May 1, 2009</td></tr><tr><td height="20" style="border-top: 1px solid #000000;" align="left" width="355">Extended warranty deferred revenue, beginning of period</td><td height="20" style="border-top: 1px solid #000000;" align="center" width="14">$</td><td height="20" style="border-top: 1px solid #000000;" align="right" width="105"> 549 </td><td height="20" style="border-top: 1px solid #000000;" align="center" width="14">$</td><td height="20" style="border-top: 1px solid #000000;" align="right" width="105"> 479 </td></tr><tr><td height="20" width="355" align="left">Additions to deferred revenue</td><td height="20" width="14" align="left"> </td><td height="20" width="105" align="right"> 68 </td><td height="20" width="14" align="right"> </td><td height="20" width="105" align="right"> 52 </td></tr><tr><td height="20" width="355" align="left">Deferred revenue recognized</td><td height="20" width="14" align="left"> </td><td height="20" width="105" align="right"> (41)</td><td height="20" width="14" align="right"> </td><td height="20" width="105" align="right"> (35)</td></tr><tr><td height="20" style="border-bottom: 1px solid #000000;" align="left" width="355">Extended warranty deferred revenue, end of period</td><td height="20" style="border-bottom: 1px solid #000000;" align="center" width="14">$</td><td height="20" style="border-bottom: 1px solid #000000;" align="right" width="105"> 576 </td><td height="20" style="border-bottom: 1px solid #000000;" align="center" width="14">$</td><td height="20" style="border-bottom: 1px solid #000000;" align="right" width="105"> 496 </td></tr></table>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 $150 million at January 29, 2010. The Company’s extended warranty deferred costs are included in other assets (non-current) on the consolidated balance sheets. All other costs, such as costs of services performed under the contract, general and administrative expenses and advertising expenses, are expensed as incurred. The liability for extended warranty claims incurred is included in other current liabilities on the consolidated balance sheets. Changes in the liability for extended warranty claims are summarized as follows: <table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="20" width="350" align="left"> </td><td height="20" style="border-bottom: 1px solid #000000;" align="left" width="14"> </td><td width="224" align="center" colspan="3" style="border-bottom: 1px solid #000000;" height="20">Three Months Ended</td></tr><tr><td height="20" style="border-bottom: 1px solid #000000;" align="left" width="350">(In millions)</td><td height="20" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="14"> </td><td height="20" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="105">April 30, 2010</td><td width="119" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="20">May 1, 2009</td></tr><tr><td height="20" style="border-top: 1px solid #000000;" align="left" width="350">Liability for extended warranty claims, beginning of period</td><td height="20" style="border-top: 1px solid #000000;" align="left" width="14">$</td><td height="20" style="border-top: 1px solid #000000;" align="right" width="105"> 23 </td><td height="20" style="border-top: 1px solid #000000;" align="left" width="14">$</td><td height="20" style="border-top: 1px solid #000000;" align="right" width="105"> 17 </td></tr><tr><td height="20" width="350" align="left">Accrual for claims incurred </td><td height="20" width="14" align="left"> </td><td height="20" width="105" align="right"> 17 </td><td height="20" width="14" align="right"> </td><td height="20" width="105" align="right"> 13 </td></tr><tr><td height="20" width="350" align="left">Claim payments</td><td height="20" width="14" align="left"> </td><td height="20" width="105" align="right"> (17)</td><td height="20" width="14" align="left"> </td><td height="20" width="105" align="right"> (12)</td></tr><tr><td height="20" style="border-bottom: 1px solid #000000;" align="left" width="350">Liability for extended warranty claims, end of period</td><td height="20" style="border-bottom: 1px solid #000000;" align="center" width="14">$</td><td height="20" style="border-bottom: 1px solid #000000;" align="right" width="105"> 23 </td><td height="20" style="border-bottom: 1px solid #000000;" align="center" width="14">$</td><td height="20" style="border-bottom: 1px solid #000000;" align="right" width="105"> 18 </td></tr></table></div> Note 6: Extended Warranties – The Company sells separately-priced extended warranty contracts under a Lowe’s-branded program for which the Company false false false Disclosure for standard and extended product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 45 -Paragraph 14 -Subparagraph a, b false false 1 2 false UnKnown UnKnown UnKnown false true