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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended November 2, 2012
|
o
|
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
|
LOWE'S
COMPANIES, INC.
|
(Exact name of registrant as specified in its charter)
|
NORTH CAROLINA
|
56-0578072
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
1000 Lowe's Blvd., Mooresville, NC
|
28117
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant's telephone number, including area code
|
(704) 758-1000
|
CLASS
|
OUTSTANDING AT NOVEMBER 30, 2012
|
|
Common Stock, $.50 par value
|
1,124,677,129 |
LOWE’S COMPANIES, INC.
|
||||
PART I - Financial Information | Page No. | |||
Item 1.
|
Financial Statements
|
|||
3 | ||||
4 | ||||
4 | ||||
5 | ||||
6-14 | ||||
15 | ||||
Item 2.
|
16-24 | |||
|
||||
Item 3.
|
24 | |||
Item 4.
|
24 | |||
PART II - Other Information | ||||
Item 1A.
|
25 | |||
Item 2.
|
25 | |||
Item 6.
|
26-27 | |||
28 | ||||
Part I - FINANCIAL INFORMATION
|
||||||||||
Item 1. Financial Statements
|
||||||||||
Lowe's Companies, Inc.
|
||||||||||
In Millions, Except Par Value Data
|
||||||||||
(Unaudited) | (Unaudited) | |||||||||
November 2, 2012
|
October 28, 2011
|
February 3, 2012
|
||||||||
Assets
|
||||||||||
Current assets:
|
||||||||||
Cash and cash equivalents
|
$
|
1,091
|
$
|
675
|
$
|
1,014
|
||||
Short-term investments
|
209
|
294
|
286
|
|||||||
Merchandise inventory - net
|
8,995
|
8,990
|
8,355
|
|||||||
Deferred income taxes - net
|
235
|
237
|
183
|
|||||||
Other current assets
|
300
|
227
|
234
|
|||||||
Total current assets
|
10,830
|
10,423
|
10,072
|
|||||||
Property, less accumulated depreciation
|
21,591
|
21,888
|
21,970
|
|||||||
Long-term investments
|
350
|
705
|
504
|
|||||||
Other assets
|
1,182
|
850
|
1,013
|
|||||||
Total assets
|
$
|
33,953
|
$
|
33,866
|
$
|
33,559
|
||||
Liabilities and shareholders' equity
|
||||||||||
Current liabilities:
|
||||||||||
Current maturities of long-term debt
|
$
|
45
|
$
|
590
|
$
|
592
|
||||
Accounts payable
|
5,416
|
5,242
|
4,352
|
|||||||
Accrued compensation and employee benefits
|
581
|
622
|
613
|
|||||||
Deferred revenue
|
788
|
789
|
801
|
|||||||
Other current liabilities
|
1,784
|
1,913
|
1,533
|
|||||||
Total current liabilities
|
8,614
|
9,156
|
7,891
|
|||||||
Long-term debt, excluding current maturities
|
9,004
|
6,025
|
7,035
|
|||||||
Deferred income taxes - net
|
486
|
322
|
531
|
|||||||
Deferred revenue - extended protection plans
|
720
|
687
|
704
|
|||||||
Other liabilities
|
904
|
867
|
865
|
|||||||
Total liabilities
|
19,728
|
17,057
|
17,026
|
|||||||
Shareholders' equity:
|
||||||||||
Preferred stock - $5 par value, none issued
|
-
|
-
|
-
|
|||||||
Common stock - $.50 par value;
|
||||||||||
Shares issued and outstanding
|
||||||||||
November 2, 2012
|
1,123
|
|||||||||
October 28, 2011
|
1,260
|
|||||||||
February 3, 2012
|
1,241
|
561
|
630
|
621
|
||||||
Capital in excess of par value
|
9
|
24
|
14
|
|||||||
Retained earnings
|
13,602
|
16,109
|
15,852
|
|||||||
Accumulated other comprehensive income
|
53
|
46
|
46
|
|||||||
Total shareholders' equity
|
14,225
|
16,809
|
16,533
|
|||||||
Total liabilities and shareholders' equity
|
$
|
33,953
|
$
|
33,866
|
$
|
33,559
|
||||
See accompanying notes to the consolidated financial statements (unaudited).
|
Lowe's Companies, Inc.
|
||||||||||||||||||||
In Millions, Except Per Share and Percentage Data
|
||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
|||||||||||||||||
Current Earnings
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||
Net sales
|
$ | 12,073 | 100.00 | $ | 11,852 | 100.00 | $ | 39,475 | 100.00 | $ | 38,579 | 100.00 | ||||||||
Cost of sales
|
7,930 | 65.68 | 7,815 | 65.94 | 25,933 | 65.70 | 25,208 | 65.34 | ||||||||||||
Gross margin
|
4,143 | 34.32 | 4,037 | 34.06 | 13,542 | 34.30 | 13,371 | 34.66 | ||||||||||||
Expenses:
|
||||||||||||||||||||
Selling, general and administrative
|
3,023 | 25.03 | 3,233 | 27.27 | 9,436 | 23.91 | 9,583 | 24.84 | ||||||||||||
Depreciation
|
371 | 3.08 | 361 | 3.05 | 1,111 | 2.81 | 1,098 | 2.84 | ||||||||||||
Interest - net
|
114 | 0.95 | 91 | 0.77 | 313 | 0.79 | 269 | 0.70 | ||||||||||||
Total expenses
|
3,508 | 29.06 | 3,685 | 31.09 | 10,860 | 27.51 | 10,950 | 28.38 | ||||||||||||
Pre-tax earnings
|
635 | 5.26 | 352 | 2.97 | 2,682 | 6.79 | 2,421 | 6.28 | ||||||||||||
Income tax provision
|
239 | 1.98 | 127 | 1.07 | 1,012 | 2.56 | 904 | 2.35 | ||||||||||||
Net earnings
|
$ | 396 | 3.28 | $ | 225 | 1.90 | $ | 1,670 | 4.23 | $ | 1,517 | 3.93 | ||||||||
Weighted average common shares outstanding - basic
|
1,126 | 1,250 | 1,163 | 1,283 | ||||||||||||||||
Basic earnings per common share
|
$ | 0.35 | $ | 0.18 | $ | 1.43 | $ | 1.17 | ||||||||||||
Weighted average common shares outstanding - diluted
|
1,128 | 1,252 | 1,165 | 1,286 | ||||||||||||||||
Diluted earnings per common share
|
$ | 0.35 | $ | 0.18 | $ | 1.42 | $ | 1.17 | ||||||||||||
Cash dividends per share
|
$ | 0.16 | $ | 0.14 | $ | 0.46 | $ | 0.39 | ||||||||||||
Retained Earnings
|
||||||||||||||||||||
Balance at beginning of period
|
$ | 14,199 | $ | 16,060 | $ | 15,852 | $ | 17,371 | ||||||||||||
Net earnings
|
396 | 225 | 1,670 | 1,517 | ||||||||||||||||
Cash dividends
|
(180 | ) | (176 | ) | (530 | ) | (498 | ) | ||||||||||||
Share repurchases
|
(813 | ) | - | (3,390 | ) | (2,281 | ) | |||||||||||||
Balance at end of period
|
$ | 13,602 | $ | 16,109 | $ | 13,602 | $ | 16,109 | ||||||||||||
Lowe's Companies, Inc.
|
||||||||||||||||||||
In Millions, Except Percentage Data
|
||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
|||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
Net earnings
|
$ | 396 | 3.28 | $ | 225 | 1.90 | $ | 1,670 | 4.23 | $ | 1,517 | 3.93 | ||||||||
Foreign currency translation adjustments
|
8 | 0.07 | (35 | ) | (0.29 | ) | 7 | 0.02 | (8 | ) | (0.01 | ) | ||||||||
Net unrealized investment(losses)/gains
|
(2 | ) | (0.02 | ) | (1 | ) | - | - | - | 1 | - | |||||||||
Other comprehensive income/(loss)
|
6 | 0.05 | (36 | ) | (0.29 | ) | 7 | 0.02 | (7 | ) | (0.01 | ) | ||||||||
Comprehensive income
|
$ | 402 | 3.33 | $ | 189 | 1.61 | $ | 1,677 | 4.25 | $ | 1,510 | 3.92 | ||||||||
See accompanying notes to the consolidated financial statements (unaudited).
|
Lowe's Companies, Inc.
|
||||||
In Millions
|
||||||
Nine Months Ended
|
||||||
November 2, 2012
|
October 28, 2011
|
|||||
Cash flows from operating activities:
|
||||||
Net earnings
|
$ | 1,670 | $ | 1,517 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||
Depreciation and amortization
|
1,185 | 1,171 | ||||
Deferred income taxes
|
(113 | ) | (200 | ) | ||
Loss on property and other assets - net
|
69 | 407 | ||||
Loss on equity method investments
|
38 | 7 | ||||
Share-based payment expense
|
75 | 81 | ||||
Changes in operating assets and liabilities:
|
||||||
Merchandise inventory - net
|
(640 | ) | (669 | ) | ||
Other operating assets
|
(150 | ) | 119 | |||
Accounts payable
|
1,064 | 892 | ||||
Other operating liabilities
|
310 | 567 | ||||
Net cash provided by operating activities
|
3,508 | 3,892 | ||||
Cash flows from investing activities:
|
||||||
Purchases of investments
|
(1,333 | ) | (1,200 | ) | ||
Proceeds from sale/maturity of investments
|
1,563 | 1,672 | ||||
Capital expenditures
|
(947 | ) | (1,264 | ) | ||
Change in equity method investments
|
(157 | ) | (204 | ) | ||
Proceeds from sale of property and other long-term assets
|
105 | 26 | ||||
Other - net
|
(14 | ) | (13 | ) | ||
Net cash used in investing activities
|
(783 | ) | (983 | ) | ||
Cash flows from financing activities:
|
||||||
Net proceeds from issuance of long-term debt
|
1,984 | - | ||||
Repayment of long-term debt
|
(580 | ) | (28 | ) | ||
Proceeds from issuance of common stock under share-based payment plans
|
102 | 55 | ||||
Cash dividend payments
|
(524 | ) | (470 | ) | ||
Repurchase of common stock
|
(3,643 | ) | (2,434 | ) | ||
Other - net
|
11 | (9 | ) | |||
Net cash used in financing activities
|
(2,650 | ) | (2,886 | ) | ||
Effect of exchange rate changes on cash
|
2 | - | ||||
Net increase in cash and cash equivalents
|
77 | 23 | ||||
Cash and cash equivalents, beginning of period
|
1,014 | 652 | ||||
Cash and cash equivalents, end of period
|
$ | 1,091 | $ | 675 | ||
See accompanying notes to the consolidated financial statements (unaudited).
|
·
|
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
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
(In millions)
|
November 2, 2012
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Available-for-sale securities:
|
||||||||||||||
Money market funds
|
$ | 63 | $ | 63 | $ | - | $ | - | ||||||
Municipal floating rate obligations
|
61 | - | 61 | - | ||||||||||
Municipal obligations
|
51 | - | 51 | - | ||||||||||
Other
|
6 | - | 6 | - | ||||||||||
Trading securities:
|
||||||||||||||
Mutual funds
|
28 | 28 | - | - | ||||||||||
Total short-term investments
|
$ | 209 | $ | 91 | $ | 118 | $ | - | ||||||
Available-for-sale securities:
|
||||||||||||||
Municipal floating rate obligations
|
$ | 278 | $ | - | $ | 278 | $ | - | ||||||
Municipal obligations
|
72 | - | 72 | - | ||||||||||
Total long-term investments
|
$ | 350 | $ | - | $ | 350 | $ | - | ||||||
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
(In millions)
|
October 28, 2011
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Available-for-sale securities:
|
||||||||||||||
Money market funds
|
$ | 121 | $ | 121 | $ | - | $ | - | ||||||
Municipal floating rate obligations
|
32 | - | 32 | - | ||||||||||
Municipal obligations
|
94 | - | 94 | - | ||||||||||
Other
|
2 | 2 | - | - | ||||||||||
Trading securities:
|
||||||||||||||
Mutual funds
|
45 | 45 | - | - | ||||||||||
Total short-term investments
|
$ | 294 | $ | 168 | $ | 126 | $ | - | ||||||
Available-for-sale securities:
|
||||||||||||||
Municipal floating rate obligations
|
$ | 513 | $ | - | $ | 513 | $ | - | ||||||
Municipal obligations
|
174 | - | 174 | - | ||||||||||
Other
|
18 | - | 18 | - | ||||||||||
Total long-term investments
|
$ | 705 | $ | - | $ | 705 | $ | - | ||||||
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
(In millions)
|
February 3, 2012
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Available-for-sale securities:
|
||||||||||||||
Money market funds
|
$ | 153 | $ | 153 | $ | - | $ | - | ||||||
Municipal floating rate obligations
|
25 | - | 25 | - | ||||||||||
Municipal obligations
|
79 | - | 79 | - | ||||||||||
Other
|
2 | 2 | - | - | ||||||||||
Trading securities:
|
||||||||||||||
Mutual funds
|
27 | 27 | - | - | ||||||||||
Total short-term investments
|
$ | 286 | $ | 182 | $ | 104 | $ | - | ||||||
Available-for-sale securities:
|
||||||||||||||
Municipal floating rate obligations
|
$ | 363 | $ | - | $ | 363 | $ | - | ||||||
Municipal obligations
|
122 | - | 122 | - | ||||||||||
Other
|
19 | - | 19 | - | ||||||||||
Total long-term investments
|
$ | 504 | $ | - | $ | 504 | $ | - |
Fair Value Measurements - Nonrecurring Basis
|
||||||||||||
Three Months Ended
|
||||||||||||
November 2, 2012
|
October 28, 2011
|
|||||||||||
Fair Value
Measurements
|
Impairment
Losses
|
Fair Value
Measurements
|
Impairment
Losses
|
|||||||||
(In millions)
|
||||||||||||
Assets-held-for-use:
|
||||||||||||
Operating locations
|
$ | 18 | $ | (48 | ) | $ | 7 | $ | (22 | ) | ||
Locations identified for closure
|
- | - | 52 | (208 | ) | |||||||
Excess properties
|
1 | (2 | ) | 56 | (31 | ) | ||||||
Assets-held-for-sale:
|
||||||||||||
Excess properties
|
3 | - | - | - | ||||||||
Total
|
$ | 22 | $ | (50 | ) | $ | 115 | $ | (261 | ) | ||
Nine Months Ended
|
||||||||||||
November 2, 2012
|
October 28, 2011
|
|||||||||||
Fair Value
Measurements
|
Impairment
Losses
|
Fair Value
Measurements
|
Impairment
Losses
|
|||||||||
(In millions)
|
||||||||||||
Assets-held-for-use:
|
||||||||||||
Operating locations
|
$ | 19 | $ | (54 | ) | $ | 16 | $ | (40 | ) | ||
Locations identified for closure
|
- | - | 73 | (268 | ) | |||||||
Excess properties
|
32 | (17 | ) | 78 | (43 | ) | ||||||
Assets-held-for-sale:
|
||||||||||||
Excess properties
|
4 | (1 | ) | 2 | - | |||||||
Total
|
$ | 55 | $ | (72 | ) | $ | 169 | $ | (351 | ) |
November 2, 2012
|
October 28, 2011
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
(In millions)
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||
Unsecured notes (Level 1)
|
$ | 8,626 | $ | 10,160 | $ | 6,194 | $ | 7,027 | ||||||||
Mortgage notes (Level 2)
|
19 | 23 | 21 | 25 | ||||||||||||
Long-term debt (excluding capitalized lease obligations)
|
$ | 8,645 | $ | 10,183 | $ | 6,215 | $ | 7,052 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In millions)
|
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
||||||||||||
Accrual for exit activities, balance at beginning of period
|
$ | 68 | $ | 27 | $ | 86 | $ | 12 | ||||||||
Additions to the accrual - net
|
14 | 68 | 5 | 86 | ||||||||||||
Cash payments
|
(5 | ) | (3 | ) | (14 | ) | (6 | ) | ||||||||
Accrual for exit activities, balance at end of period
|
$ | 77 | $ | 92 | $ | 77 | $ | 92 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In millions)
|
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
||||||||||||
Deferred revenue - extended protection plans, beginning of period
|
$ | 726 | $ | 673 | $ | 704 | $ | 631 | ||||||||
Additions to deferred revenue
|
57 | 61 | 191 | 196 | ||||||||||||
Deferred revenue recognized
|
(63 | ) | (47 | ) | (175 | ) | (140 | ) | ||||||||
Deferred revenue - extended protection plans, end of period
|
$ | 720 | $ | 687 | $ | 720 | $ | 687 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In millions)
|
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
||||||||||||
Liability for extended protection plan claims, beginning of period
|
$ | 23 | $ | 24 | $ | 21 | $ | 20 | ||||||||
Accrual for claims incurred
|
29 | 23 | 71 | 68 | ||||||||||||
Claim payments
|
(29 | ) | (24 | ) | (69 | ) | (65 | ) | ||||||||
Liability for extended protection plan claims, end of period
|
$ | 23 | $ | 23 | $ | 23 | $ | 23 |
Three Months Ended
|
||||||||||||||||
November 2, 2012
|
October 28, 2011
|
|||||||||||||||
(In millions)
|
Shares
|
Cost
1
|
Shares
|
Cost
|
||||||||||||
Share repurchase program
|
29.6 | $ | 850 | - | $ | - | ||||||||||
Shares withheld from employees
|
0.1 | - | 0.1 | 1 | ||||||||||||
Total share repurchases
|
29.7 | $ | 850 | 0.1 | $ | 1 | ||||||||||
Nine Months Ended
|
||||||||||||||||
November 2, 2012
|
October 28, 2011
|
|||||||||||||||
(In millions)
|
Shares
|
Cost
2
|
Shares
|
Cost
2
|
||||||||||||
Share repurchase program
|
124.4 | $ | 3,600 | 97.5 | $ | 2,400 | ||||||||||
Shares withheld from employees
|
1.5 | 43 | 1.4 | 36 | ||||||||||||
Total share repurchases
|
125.9 | $ | 3,643 | 98.9 | $ | 2,436 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In millions, except per share data)
|
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
||||||||||||
Basic earnings per common share:
|
||||||||||||||||
Net earnings
|
$ | 396 | $ | 225 | $ | 1,670 | $ | 1,517 | ||||||||
Less: Net earnings allocable to participating securities
|
(3 | ) | (2 | ) | (11 | ) | (12 | ) | ||||||||
Net earnings allocable to common shares
|
$ | 393 | $ | 223 | $ | 1,659 | $ | 1,505 | ||||||||
Weighted-average common shares outstanding
|
1,126 | 1,250 | 1,163 | 1,283 | ||||||||||||
Basic earnings per common share
|
$ | 0.35 | $ | 0.18 | $ | 1.43 | $ | 1.17 | ||||||||
Diluted earnings per common share:
|
||||||||||||||||
Net earnings
|
$ | 396 | $ | 225 | $ | 1,670 | $ | 1,517 | ||||||||
Less: Net earnings allocable to participating securities
|
(3 | ) | (2 | ) | (11 | ) | (12 | ) | ||||||||
Net earnings allocable to common shares
|
$ | 393 | $ | 223 | $ | 1,659 | $ | 1,505 | ||||||||
Weighted-average common shares outstanding
|
1,126 | 1,250 | 1,163 | 1,283 | ||||||||||||
Dilutive effect of non-participating share-based awards
|
2 | 2 | 2 | 3 | ||||||||||||
Weighted-average common shares, as adjusted
|
1,128 | 1,252 | 1,165 | 1,286 | ||||||||||||
Diluted earnings per common share
|
$ | 0.35 | $ | 0.18 | $ | 1.42 | $ | 1.17 |
Net interest expense is comprised of the following:
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In millions)
|
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
||||||||||||
Long-term debt
|
$ | 107 | $ | 83 | $ | 314 | $ | 250 | ||||||||
Capitalized lease obligations
|
9 | 10 | 28 | 28 | ||||||||||||
Interest income
|
(3 | ) | (3 | ) | (7 | ) | (10 | ) | ||||||||
Interest capitalized
|
(1 | ) | (3 | ) | (3 | ) | (7 | ) | ||||||||
Interest on tax uncertainties
|
- | 3 | (25 | ) | 4 | |||||||||||
Other
|
2 | 1 | 6 | 4 | ||||||||||||
Interest - net
|
$ | 114 | $ | 91 | $ | 313 | $ | 269 |
Supplemental disclosures of cash flow information:
|
||||||||
Nine Months Ended
|
||||||||
(In millions)
|
November 2, 2012
|
October 28, 2011
|
||||||
Cash paid for interest, net of amount capitalized
|
$ | 414 | $ | 353 | ||||
Cash paid for income taxes, net
|
$ | 1,059 | $ | 787 | ||||
Non-cash investing and financing activities:
|
||||||||
Non-cash property acquisitions, including assets acquired under capital lease
|
$ | 25 | $ | 172 | ||||
Cash dividends declared but not paid
|
$ | 180 | $ | 176 |
·
|
Executive Overview
|
·
|
Operations
|
·
|
Lowe’s Business Outlook
|
·
|
Financial Condition, Liquidity and Capital Resources
|
·
|
Off-Balance Sheet Arrangements
|
·
|
Contractual Obligations and Commercial Commitments
|
·
|
Critical Accounting Policies and Estimates
|
Three Months Ended
|
Basis Point Increase / (Decrease) in Percentage of Net Sales from Prior Period
|
Percentage Increase / (Decrease) in Dollar Amounts from Prior Period
|
||||||||||||||
November 2, 2012
|
October 28, 2011
|
2012 vs. 2011
|
2012 vs. 2011 | |||||||||||||
Net sales
|
100.00 | % | 100.00 | % | N/A | 1.9 | % | |||||||||
Gross margin
|
34.32 | 34.06 | 26 | 2.6 | ||||||||||||
Expenses:
|
||||||||||||||||
Selling, general and administrative
|
25.03 | 27.27 | (224 | ) | (6.5 | ) | ||||||||||
Depreciation
|
3.08 | 3.05 | 3 | 2.9 | ||||||||||||
Interest - net
|
0.95 | 0.77 | 18 | 25.6 | ||||||||||||
Total expenses
|
29.06 | 31.09 | (203 | ) | (4.8 | ) | ||||||||||
Pre-tax earnings
|
5.26 | 2.97 | 229 | 80.2 | ||||||||||||
Income tax provision
|
1.98 | 1.07 | 91 | 88.4 | ||||||||||||
Net earnings
|
3.28 | % | 1.90 | % | 138 | 75.6 | % | |||||||||
EBIT margin
1
|
6.21 | % | 3.74 | % | 247 | 69.0 | % | |||||||||
Nine Months Ended
|
Basis Point Increase / (Decrease) in Percentage of Net Sales from Prior Period
|
Percentage Increase / (Decrease) in Dollar Amounts from Prior Period
|
||||||||||||||
November 2, 2012
|
October 28, 2011
|
2012 vs. 2011
|
2012 vs. 2011
|
|||||||||||||
Net sales
|
100.00 | % | 100.00 | % | N/A | 2.3 | % | |||||||||
Gross margin
|
34.30 | 34.66 | (36 | ) | 1.3 | |||||||||||
Expenses:
|
||||||||||||||||
Selling, general and administrative
|
23.91 | 24.84 | (93 | ) | (1.5 | ) | ||||||||||
Depreciation
|
2.81 | 2.84 | (3 | ) | 1.2 | |||||||||||
Interest - net
|
0.79 | 0.70 | 9 | 16.4 | ||||||||||||
Total expenses
|
27.51 | 28.38 | (87 | ) | (0.8 | ) | ||||||||||
Pre-tax earnings
|
6.79 | 6.28 | 51 | 10.8 | ||||||||||||
Income tax provision
|
2.56 | 2.35 | 21 | 11.9 | ||||||||||||
Net earnings
|
4.23 | % | 3.93 | % | 30 | 10.1 | % | |||||||||
EBIT margin
1
|
7.58 | % | 6.98 | % | 60 | 11.3 | % |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Other Metrics
|
November 2, 2012
|
October 28, 2011
|
November 2, 2012
|
October 28, 2011
|
||||||||||||
Comparable store sales increase/(decrease)
2, 3
|
1.8 | % | 0.7 | % | 1.3 | % | (1.0 | )% | ||||||||
Total customer transactions (in millions)
4
|
191 | 192 | 627 | 619 | ||||||||||||
Average ticket
4, 5
|
$ | 63.11 | $ | 61.84 | $ | 62.94 | $ | 62.28 | ||||||||
At end of period:
|
||||||||||||||||
Number of stores
|
1,750 | 1,744 | ||||||||||||||
Sales floor square feet (in millions)
|
197 | 196 | ||||||||||||||
Average store size selling square feet (in thousands)
6
|
113 | 113 | ||||||||||||||
Return on invested capital
7
|
9.4 | % | 8.4 | % |
1
|
EBIT margin, also referred to as operating margin, is defined as earnings before interest and taxes as a percentage of sales.
|
2
|
Comparable store sales are based on comparable 13-week and 39-week periods.
|
3
|
A comparable store is defined as a store that has been open longer than 13 months. A store that is identified for relocation is no longer considered comparable one month prior to its relocation. The relocated store must then remain open longer than 13 months to be considered comparable. A store we have decided to close is no longer considered comparable as of the beginning of the month in which we announce its closing.
|
4
|
In fiscal 2012, there is a one-week shift as a result of the 53
rd
week in 2011.
|
5
|
Average ticket is defined as net sales divided by the total number of customer transactions.
|
6
|
Average store size selling square feet is defined as sales floor square feet divided by the number of stores open at the end of the period.
|
7
|
Return on invested capital is a non-GAAP financial measure. See below for additional information.
|
(In millions, except percentage data)
|
For the periods ended
|
||||||
Calculation of Return on Invested Capital
|
November 2, 2012
|
October 28, 2011
|
|||||
Numerator
1
|
|||||||
Net earnings
|
$ | 1,993 | $ | 1,802 | |||
Plus:
|
|||||||
Interest expense - net
|
415 | 356 | |||||
Provision for income taxes
|
1,175 | 1,074 | |||||
Earnings before interest and taxes
|
3,583 | 3,232 | |||||
Less:
|
|||||||
Income tax adjustment
2
|
1,329 | 1,207 | |||||
Net operating profit after tax
|
$ | 2,254 | $ | 2,025 | |||
Effective tax rate
|
37.1 | % | 37.4 | % | |||
Denominator
|
|||||||
Average debt and equity
3
|
$ | 24,019 | $ | 24,002 | |||
Return on invested capital
|
9.4 | % | 8.4 | % | |||
Calculation of Return on Average Debt and Equity
|
|||||||
Numerator
1
|
|||||||
Net earnings
|
$ | 1,993 | $ | 1,802 | |||
Denominator
|
|||||||
Average debt and equity
3
|
$ | 24,019 | $ | 24,002 | |||
Return on average debt and equity
|
8.3 | % | 7.5 | % |
Debt Ratings
|
S&P
|
Moody’s
|
|
Commercial Paper
|
A-2 | P-2 | |
Senior Debt
|
A- | A3 | |
Senior Debt Outlook
|
Negative
|
Stable
|
Payments Due by Period
|
|||||||||||||||
Contractual Obligations
|
Less Than
|
1-3 | 4-5 |
After 5
|
|||||||||||
(In millions)
|
Total
|
1 Year
|
Years
|
Years
|
Years
|
||||||||||
Long-term debt (principal amounts, excluding discount)
|
$ | 8,702 | $ | 2 | $ | 510 | $ | 1,778 | $ | 6,412 | |||||
Long-term debt (interest payments)
|
$ | 6,829 | $ | 414 | $ | 828 | $ | 729 | $ | 4,858 | |||||
Total
|
$ | 15,531 | $ | 416 | $ | 1,338 | $ | 2,507 | $ | 11,270 |
(In millions, except average price paid per share)
|
Total Number of
Shares Purchased
1
|
Average Price Paid
per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
2
|
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
2
|
||||||||||||
August 4, 2012 - August 31, 2012
|
11.4 | $ | 27.85 | 11.4 | $ | 1,430 | ||||||||||
September 1, 2012 - October 5, 2012
|
18.2 | 29.20 | 18.2 | 900 | ||||||||||||
October 6, 2012 - November 2, 2012
|
0.1 | 32.08 | - | 900 | ||||||||||||
As of November 2, 2012
|
29.7 | $ | 28.68 | 29.6 | $ | 900 |
Exhibit
|
Incorporated by Reference
|
|||||||||
Number
|
Exhibit Description
|
Form
|
File No.
|
Exhibit(s)
|
Filing Date
|
|||||
3.1
|
Restated Charter of Lowe's Companies, Inc.
|
10-Q
|
001-07898
|
3.1
|
September 1, 2009
|
|||||
3.2
|
Bylaws of Lowe's Companies, Inc., as amended and restated.
|
8-K
|
001-07898
|
3.1
|
August 27, 2012
|
|||||
10.1
|
Amendment No. 9 to the Lowe's Companies, Inc 401(k) Plan.*‡
|
|||||||||
12.1
|
Statement Re Computation of Ratio of Earnings to Fixed Charges.‡
|
|||||||||
15.1
|
Deloitte & Touche LLP Letter Re Unaudited Interim Financial Information.‡
|
|||||||||
31.1
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.‡
|
|||||||||
31.2
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.‡
|
|||||||||
32.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.†
|
|||||||||
32.2
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.†
|
|||||||||
101.INS
|
XBRL Instance Document.‡
|
|||||||||
101.SCH
|
XBRL Taxonomy Extension Schema Document.‡
|
|||||||||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.‡
|
|||||||||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.‡
|
|||||||||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.‡
|
|||||||||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.‡
|
|||||||||
*
|
Management contract or compensatory plan or arrangement required to be filed as an exhibit to this form.
|
|||||||||
‡
|
Filed herewith.
|
|||||||||
†
|
Furnished herewith.
|
|||||||||
LOWE'S COMPANIES, INC.
|
||
December 4, 2012
Date
|
/s/ Matthew V. Hollifield
Matthew V. Hollifield
Senior Vice President and Chief Accounting Officer
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Big Lots, Inc. | BIG |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|