Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
1-May-15 | 29-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LOWES COMPANIES INC | |
Entity Central Index Key | 60667 | |
Document Type | 10-Q | |
Document Period End Date | 1-May-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -28 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 932,685,656 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | 1-May-15 | Jan. 30, 2015 | 2-May-14 |
In Millions, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $1,434 | $466 | $658 |
Short-term investments | 95 | 125 | 110 |
Merchandise inventory - net | 10,614 | 8,911 | 10,515 |
Deferred income taxes - net | 255 | 230 | 283 |
Other current assets | 393 | 348 | 386 |
Total current assets | 12,791 | 10,080 | 11,952 |
Property, less accumulated depreciation | 19,892 | 20,034 | 20,617 |
Long-term investments | 384 | 354 | 360 |
Other assets | 1,355 | 1,359 | 1,300 |
Total assets | 34,422 | 31,827 | 34,229 |
Current liabilities: | |||
Current maturities of long-term debt | 1,026 | 552 | 47 |
Accounts payable | 8,023 | 5,124 | 7,051 |
Accrued compensation and employee benefits | 555 | 773 | 501 |
Deferred revenue | 1,153 | 979 | 1,055 |
Other current liabilities | 2,213 | 1,920 | 2,160 |
Total current liabilities | 12,970 | 9,348 | 10,814 |
Long-term debt, excluding current maturities | 10,334 | 10,815 | 10,080 |
Deferred income taxes - net | 98 | 97 | 261 |
Deferred revenue - extended protection plans | 727 | 730 | 730 |
Other liabilities | 816 | 869 | 862 |
Total liabilities | 24,945 | 21,859 | 22,747 |
Shareholders' equity: | |||
Preferred stock - $5 par value, none issued | 0 | 0 | 0 |
Common stock - $.50 par value; Shares issued and outstanding 947 at May 1, 2015, 1,012 at May 2, 2014, and 960 at January 30, 2015 | 473 | 480 | 506 |
Capital in excess of par value | 0 | 0 | 0 |
Retained earnings | 9,085 | 9,591 | 10,985 |
Accumulated other comprehensive loss | -81 | -103 | -9 |
Total shareholders' equity | 9,477 | 9,968 | 11,482 |
Total liabilities and shareholders' equity | $34,422 | $31,827 | $34,229 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 1-May-15 | Jan. 30, 2015 | 2-May-14 |
Shareholders' equity: | |||
Preferred stock, par value | $5 | $5 | $5 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value | $0.50 | $0.50 | $0.50 |
Common stock, shares issued | 947,000,000 | 960,000,000 | 1,012,000,000 |
Common stock, shares outstanding | 947,000,000 | 960,000,000 | 1,012,000,000 |
Consolidated_Statements_of_Cur
Consolidated Statements of Current and Retained Earnings (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 1-May-15 | 2-May-14 |
Current Earnings | ||
Net sales | $14,129 | $13,403 |
Cost of sales | 9,117 | 8,645 |
Gross margin | 5,012 | 4,758 |
Expenses: | ||
Selling, general and administrative | 3,415 | 3,319 |
Depreciation | 365 | 373 |
Interest - net | 134 | 124 |
Total expenses | 3,914 | 3,816 |
Pre-tax earnings | 1,098 | 942 |
Income tax provision | 425 | 318 |
Net earnings | 673 | 624 |
Weighted-average common shares outstanding - basic | 950 | 1,015 |
Basic earnings per common share | $0.70 | $0.61 |
Weighted-average common shares outstanding - diluted | 952 | 1,017 |
Diluted earnings per common share | $0.70 | $0.61 |
Cash dividends per share | $0.23 | $0.18 |
Retained Earnings | ||
Balance at beginning of period | 9,591 | 11,355 |
Net earnings | 673 | 624 |
Cash dividends | -218 | -183 |
Share repurchases | -961 | -811 |
Balance at end of period | $9,085 | $10,985 |
Consolidated_Statements_of_Cur1
Consolidated Statements of Current and Retained Earnings (Percents) (Unaudited) | 3 Months Ended | |
1-May-15 | 2-May-14 | |
Current Earnings | ||
Net sales | 100.00% | 100.00% |
Cost of sales | 64.53% | 64.50% |
Gross margin | 35.47% | 35.50% |
Expenses: | ||
Selling, general and administrative | 24.16% | 24.76% |
Depreciation | 2.59% | 2.78% |
Interest - net | 0.95% | 0.93% |
Total expenses | 27.70% | 28.47% |
Pre-tax earnings | 7.77% | 7.03% |
Income tax provision | 3.01% | 2.37% |
Net earnings | 4.76% | 4.66% |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 |
Comprehensive Income | ||
Net earnings | $673 | $624 |
Foreign currency translation adjustments - net of tax | 22 | 8 |
Other comprehensive income | 22 | 8 |
Comprehensive income | $695 | $632 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Percents) (Unaudited) | 3 Months Ended | |
1-May-15 | 2-May-14 | |
Comprehensive Income | ||
Net earnings | 4.76% | 4.66% |
Foreign currency translation adjustments - net of tax | 0.16% | 0.06% |
Other comprehensive income | 0.16% | 0.06% |
Comprehensive income | 4.92% | 4.72% |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 |
Cash flows from operating activities: | ||
Net earnings | $673 | $624 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 391 | 398 |
Deferred income taxes | -38 | -67 |
Loss on property and other assets - net | 7 | 24 |
Loss on equity method investments | 17 | 17 |
Share-based payment expense | 29 | 28 |
Changes in operating assets and liabilities: | ||
Merchandise inventory - net | -1,687 | -1,384 |
Other operating assets | -48 | 44 |
Accounts payable | 2,893 | 2,041 |
Other operating liabilities | 241 | 269 |
Net cash provided by operating activities | 2,478 | 1,994 |
Cash flows from investing activities: | ||
Purchases of investments | -65 | -163 |
Proceeds from sale/maturity of investments | 64 | 157 |
Capital expenditures | -232 | -194 |
Contributions to equity method investments - net | -11 | -91 |
Proceeds from sale of property and other long-term assets | 3 | 16 |
Other - net | 0 | -5 |
Net cash used in investing activities | -241 | -280 |
Cash flows from financing activities: | ||
Net decrease in short-term borrowings | 0 | -386 |
Repayment of long-term debt | -10 | -12 |
Proceeds from issuance of common stock under share-based payment plans | 21 | 24 |
Cash dividend payments | -222 | -186 |
Repurchase of common stock | -1,109 | -910 |
Other - net | 50 | 23 |
Net cash used in financing activities | -1,270 | -1,447 |
Effect of exchange rate changes on cash | 1 | 0 |
Net increase in cash and cash equivalents | 968 | 267 |
Cash and cash equivalents, beginning of period | 466 | 391 |
Cash and cash equivalents, end of period | $1,434 | $658 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
1-May-15 | |
Basis of Presentation | |
Basis of Presentation | Note 1: Basis of Presentation - The accompanying consolidated financial statements (unaudited) and notes to the 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. The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of May 1, 2015, and May 2, 2014, and the results of operations, comprehensive income and cash flows for the three months ended May 1, 2015, and May 2, 2014. |
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 30, 2015 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||||||||
1-May-15 | ||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
Fair Value Measurements | Note 2: 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 | |||||||||||||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||
The following tables present the Company’s financial assets measured at fair value on a recurring basis as of May 1, 2015, May 2, 2014, and January 30, 2015: | ||||||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||
(In millions) | Measurement Level | May 1, 2015 | May 2, 2014 | January 30, 2015 | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Money market funds | Level 1 | $ | 59 | $ | 51 | $ | 81 | |||||||||||||||||
Municipal obligations | Level 2 | 20 | 18 | 21 | ||||||||||||||||||||
Certificates of deposit | Level 1 | 16 | 21 | 17 | ||||||||||||||||||||
Municipal floating rate obligations | Level 2 | — | 20 | 6 | ||||||||||||||||||||
Total short-term investments | $ | 95 | $ | 110 | $ | 125 | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Municipal floating rate obligations | Level 2 | $ | 377 | $ | 347 | $ | 348 | |||||||||||||||||
Certificates of deposit | Level 1 | 5 | $ | — | $ | 4 | ||||||||||||||||||
Municipal obligations | Level 2 | 2 | 13 | 2 | ||||||||||||||||||||
Total long-term investments | $ | 384 | $ | 360 | $ | 354 | ||||||||||||||||||
There were no transfers between Levels 1, 2 or 3 during any of the periods presented. | ||||||||||||||||||||||||
When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, investments were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. | ||||||||||||||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||
During the three months ended May 1, 2015 and May 2, 2014, the Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were certain assets subject to long-lived asset impairment. | ||||||||||||||||||||||||
The Company reviews the carrying amounts of long-lived assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. With input from retail store operations, the Company’s accounting and finance personnel that organizationally report to the chief financial officer, assess the performance of retail stores quarterly against historical patterns and projections of future profitability for evidence of possible impairment. An impairment loss is recognized when the carrying amount of the asset (disposal) group is not recoverable and exceeds its fair value. The Company estimated the fair values of assets subject to long-lived asset impairment based on the Company’s own judgments about the assumptions that market participants would use in pricing the assets and on observable market data, when available. The Company classified these fair value measurements as Level 3. | ||||||||||||||||||||||||
In the determination of impairment for operating locations, the Company determined the fair values of individual operating locations using an income approach, which required discounting projected future cash flows. When determining the stream of projected future cash flows associated with an individual operating location, management made assumptions, incorporating local market conditions and inputs from retail store operations, about key variables including the following unobservable inputs: sales growth rates, gross margin, controllable expenses, such as payroll and occupancy expense, and asset residual values. In order to calculate the present value of those future cash flows, the Company discounted cash flow estimates at a rate commensurate with the risk that selected market participants would assign to the cash flows. In general, the selected market participants represented a group of other retailers with a location footprint similar in size to the Company’s. | ||||||||||||||||||||||||
During the three months ended May 1, 2015, one operating location experienced a triggering event and was determined to be impaired due to a decline in cash flow trends and an unfavorable sales outlook, resulting in an impairment loss of $5 million. The discounted cash flow model used to estimate the fair value of the impaired operating location assumed annual sales growth rates ranging from 2.7% to 7.0% over the remaining life of the location and applied a discount rate of approximately 6.2%. | ||||||||||||||||||||||||
The following table presents the Company’s non-financial assets measured at estimated fair value on a nonrecurring basis and the resulting long-lived asset impairment losses included in earnings. Because assets subject to long-lived asset impairment were not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at May 1, 2015 and May 2, 2014. | ||||||||||||||||||||||||
Fair Value Measurements - Nonrecurring Basis | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
May 1, 2015 | May 2, 2014 | |||||||||||||||||||||||
(In millions) | Fair Value Measurements | Impairment Losses | Fair Value Measurements | Impairment Losses | ||||||||||||||||||||
Assets-held-for-use: | ||||||||||||||||||||||||
Operating locations | $ | 4 | $ | (5 | ) | $ | 9 | $ | (23 | ) | ||||||||||||||
Total | $ | 4 | $ | (5 | ) | $ | 9 | $ | (23 | ) | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||
The Company’s financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt and are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature. The fair values of the Company’s unsecured notes were estimated using quoted market prices. The fair values of the Company’s mortgage notes were estimated using discounted cash flow analyses, based on the future cash outflows associated with these arrangements and discounted using the applicable incremental borrowing rate. | ||||||||||||||||||||||||
Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease obligations, are as follows: | ||||||||||||||||||||||||
May 1, 2015 | May 2, 2014 | January 30, 2015 | ||||||||||||||||||||||
(In millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||
Unsecured notes (Level 1) | $ | 10,861 | $ | 12,231 | $ | 9,617 | $ | 10,777 | $ | 10,860 | $ | 12,739 | ||||||||||||
Mortgage notes (Level 2) | 16 | 17 | 17 | 19 | 16 | 17 | ||||||||||||||||||
Long-term debt (excluding capitalized lease obligations) | $ | 10,877 | $ | 12,248 | $ | 9,634 | $ | 10,796 | $ | 10,876 | $ | 12,756 | ||||||||||||
Restricted_Investment_Balances
Restricted Investment Balances | 3 Months Ended |
1-May-15 | |
Restricted Investment Balances | |
Restricted Investment Balances | Note 3: Restricted Investment Balances - 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 $74 million at May 1, 2015, $87 million at May 2, 2014, and $99 million at January 30, 2015. |
Restricted balances included in long-term investments were $311 million at May 1, 2015, $328 million at May 2, 2014, and $305 million at January 30, 2015. |
Property
Property | 3 Months Ended |
1-May-15 | |
Property | |
Property | Note 4: Property - Property is shown net of accumulated depreciation of $15.8 billion at May 1, 2015, $14.6 billion at May 2, 2014, and $15.4 billion at January 30, 2015. |
Extended_Protection_Plans
Extended Protection Plans | 3 Months Ended | |||||||
1-May-15 | ||||||||
Extended Protection Plans | ||||||||
Extended Protection Plans | Note 5: Extended Protection Plans - The Company sells separately-priced extended protection plan contracts under a Lowe’s-branded program for which the Company is self-insured. The Company recognizes revenue from extended protection plan sales on a straight-line basis over the respective contract term. Extended protection plan contract terms primarily range from one to four years from the date of purchase or the end of the manufacturer’s warranty, as applicable. Changes in deferred revenue for extended protection plan contracts are summarized as follows: | |||||||
Three Months Ended | ||||||||
(In millions) | May 1, 2015 | May 2, 2014 | ||||||
Deferred revenue - extended protection plans, beginning of period | $ | 730 | $ | 730 | ||||
Additions to deferred revenue | 82 | 75 | ||||||
Deferred revenue recognized | (85 | ) | (75 | ) | ||||
Deferred revenue - extended protection plans, end of period | $ | 727 | $ | 730 | ||||
Incremental direct acquisition costs associated with the sale of extended protection plans are also deferred and recognized as expense on a straight-line basis over the respective contract term. Deferred costs associated with extended protection plan contracts were $27 million at May 1, 2015, $46 million at May 2, 2014, and $30 million at January 30, 2015. The Company’s extended protection plan deferred costs are included in other assets (noncurrent) 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 protection plan claims incurred is included in other current liabilities on the consolidated balance sheets and was not material in any of the years presented. Expenses for claims are recognized when incurred and totaled $29 million for the three months ended May 1, 2015 and May 2, 2014. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||
1-May-15 | ||||||||||||||
Shareholders' Equity | ||||||||||||||
Shareholders' Equity | Note 6: Shareholders' Equity - The Company has a share repurchase program that is executed through purchases made from time to time either in the open market, which may be made under pre-set trading plans meeting the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934, or through private off-market transactions. Shares purchased under the repurchase program are retired and returned to authorized and unissued status. On January 31, 2014, the Company's Board of Directors authorized a $5.0 billion share repurchase program with no expiration. On March 20, 2015, the Company's Board of Directors authorized an additional $5.0 billion share repurchase program with no expiration. As of May 1, 2015, the Company had $6.4 billion remaining in its share repurchase program. | |||||||||||||
In March 2015, the Company entered into an Accelerated Share Repurchase (ASR) agreement with a third-party financial institution to repurchase $500 million of the Company’s common stock. At inception, pursuant to the agreement, the Company paid $500 million to the financial institution using cash on hand, and took delivery of 5.7 million shares. Prior to the end of the first quarter of fiscal 2015, the Company finalized the transaction and received an additional 1.1 million shares. | ||||||||||||||
Under the terms of the ASR agreement, upon settlement, the Company would either receive additional shares from the financial institution or be required to deliver additional shares or cash to the financial institution. The Company controlled its election to either deliver additional shares or cash to the financial institution and was subject to provisions which limited the number of shares the Company would be required to deliver. | ||||||||||||||
The final number of shares delivered upon settlement of the ASR agreement was determined with reference to the volume-weighted average price of the Company’s common stock over the term of the ASR agreement. The initial repurchase of shares under the agreement resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. | ||||||||||||||
The ASR agreement was accounted for as a treasury stock transaction and forward stock purchase contract. The par value of the shares received was recorded as a reduction to common stock with the remainder recorded as a reduction to capital in excess of par value and retained earnings. The forward stock purchase contract was considered indexed to the Company’s own stock and was classified as an equity instrument. | ||||||||||||||
During the three months ended May 1, 2015, the Company also repurchased shares of its common stock through the open market totaling 6.8 million shares for a cost of $500 million. | ||||||||||||||
The Company also withholds shares from employees to satisfy either the exercise price of stock options exercised or the statutory withholding tax liability resulting from the vesting of share-based awards. | ||||||||||||||
Shares repurchased for the three months ended May 1, 2015, and May 2, 2014 were as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
May 1, 2015 | May 2, 2014 | |||||||||||||
(In millions) | Shares | Cost 1 | Shares | Cost 1 | ||||||||||
Share repurchase program | 13.6 | $ | 1,000 | 17.9 | $ | 850 | ||||||||
Shares withheld from employees | 0.8 | 62 | 0.9 | 42 | ||||||||||
Total share repurchases | 14.4 | $ | 1,062 | 18.8 | $ | 892 | ||||||||
1 | Reductions of $961 million and $811 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 1, 2015 and May 2, 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
1-May-15 | |
Income Taxes | |
Income Taxes | Note 7: Income Taxes - The Company's effective income tax rates were 38.7% and 33.8% for the three months ended May 1, 2015 and May 2, 2014, respectively. The lower effective income tax rate for the three months ended May 2, 2014, was primarily attributable to the favorable settlement of certain federal tax matters. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
1-May-15 | ||||||||
Earnings Per Share | ||||||||
Earnings Per Share | Note 8: 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 allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. | |||||||
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 May 1, 2015, and May 2, 2014. | ||||||||
Three Months Ended | ||||||||
(In millions, except per share data) | May 1, 2015 | May 2, 2014 | ||||||
Basic earnings per common share: | ||||||||
Net earnings | $ | 673 | $ | 624 | ||||
Less: Net earnings allocable to participating securities | (3 | ) | (4 | ) | ||||
Net earnings allocable to common shares, basic | $ | 670 | $ | 620 | ||||
Weighted-average common shares outstanding | 950 | 1,015 | ||||||
Basic earnings per common share | $ | 0.7 | $ | 0.61 | ||||
Diluted earnings per common share: | ||||||||
Net earnings | $ | 673 | $ | 624 | ||||
Less: Net earnings allocable to participating securities | (3 | ) | (4 | ) | ||||
Net earnings allocable to common shares, diluted | $ | 670 | $ | 620 | ||||
Weighted-average common shares outstanding | 950 | 1,015 | ||||||
Dilutive effect of non-participating share-based awards | 2 | 2 | ||||||
Weighted-average common shares, as adjusted | 952 | 1,017 | ||||||
Diluted earnings per common share | $ | 0.7 | $ | 0.61 | ||||
No stock options were anti-dilutive for the three months ended May 1, 2015. An insignificant number of stock options were anti-dilutive for the three months ended May 2, 2014. |
Supplemental_Disclosure
Supplemental Disclosure | 3 Months Ended | |||||||
1-May-15 | ||||||||
Supplemental Disclosure | ||||||||
Supplemental Disclosure | Note 9: Supplemental Disclosure | |||||||
Net interest expense is comprised of the following: | ||||||||
Three Months Ended | ||||||||
(In millions) | May 1, 2015 | May 2, 2014 | ||||||
Long-term debt | $ | 122 | $ | 114 | ||||
Capitalized lease obligations | 11 | 11 | ||||||
Interest income | — | (1 | ) | |||||
Interest capitalized | (1 | ) | — | |||||
Interest on tax uncertainties | — | (2 | ) | |||||
Other | 2 | 2 | ||||||
Interest - net | $ | 134 | $ | 124 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Three Months Ended | ||||||||
(In millions) | May 1, 2015 | May 2, 2014 | ||||||
Cash paid for interest, net of amount capitalized | $ | 233 | $ | 215 | ||||
Cash paid for income taxes - net | $ | 166 | $ | 33 | ||||
Non-cash investing and financing activities: | ||||||||
Non-cash property acquisitions, including assets acquired under capital lease | $ | 4 | $ | 4 | ||||
Cash dividends declared but not paid | $ | 218 | $ | 183 | ||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
1-May-15 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 10: Recent Accounting Pronouncements - Effective January 31, 2015, the Company adopted ASU 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity. The ASU amends the definition of a discontinued operation and also provides new disclosure requirements for disposals meeting the definition, and for those that do not meet the definition, of a discontinued operation. Under the new guidance, a discontinued operation may include a component or a group of components of an entity, or a business or nonprofit activity that has been disposed of or is classified as held for sale, and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The ASU also expands the scope to include the disposals of equity method investments and acquired businesses held for sale. The adoption of the guidance by the Company did not have a material impact on its consolidated financial statements. |
In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This ASU is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. The adoption of the guidance by the Company is not expected to have a material impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Currently, the guidance is effective for interim and annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. However, the FASB issued an Exposure Draft proposing the deferral of the effective date for one year, with the option to adopt as of the original effective date. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company is currently evaluating the transition methods and the impact of the standard on its consolidated financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
1-May-15 | |
Summary of Significant Accounting Policies | |
Fair Value Measurements | When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, investments were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. |
The Company reviews the carrying amounts of long-lived assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. With input from retail store operations, the Company’s accounting and finance personnel that organizationally report to the chief financial officer, assess the performance of retail stores quarterly against historical patterns and projections of future profitability for evidence of possible impairment. An impairment loss is recognized when the carrying amount of the asset (disposal) group is not recoverable and exceeds its fair value. The Company estimated the fair values of assets subject to long-lived asset impairment based on the Company’s own judgments about the assumptions that market participants would use in pricing the assets and on observable market data, when available. The Company classified these fair value measurements as Level 3. | |
Extended Protection Plans | The Company sells separately-priced extended protection plan contracts under a Lowe’s-branded program for which the Company is self-insured. The Company recognizes revenue from extended protection plan sales on a straight-line basis over the respective contract term. Extended protection plan contract terms primarily range from one to four years from the date of purchase or the end of the manufacturer’s warranty, as applicable. |
Incremental direct acquisition costs associated with the sale of extended protection plans are also deferred and recognized as expense on a straight-line basis over the respective contract term. | |
The Company’s extended protection plan deferred costs are included in other assets (noncurrent) 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 protection plan claims incurred is included in other current liabilities on the consolidated balance sheets. Expenses for claims are recognized when incurred. | |
Shareholders' Equity | The Company has a share repurchase program that is executed through purchases made from time to time either in the open market, which may be made under pre-set trading plans meeting the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934, or through private off-market transactions. Shares purchased under the repurchase program are retired and returned to authorized and unissued status. |
The ASR agreement was accounted for as a treasury stock transaction and forward stock purchase contract. The par value of the shares received was recorded as a reduction to common stock with the remainder recorded as a reduction to capital in excess of par value and retained earnings. The forward stock purchase contract was considered indexed to the Company’s own stock and was classified as an equity instrument. | |
Recent Accounting Pronouncements | Effective January 31, 2015, the Company adopted ASU 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity. The ASU amends the definition of a discontinued operation and also provides new disclosure requirements for disposals meeting the definition, and for those that do not meet the definition, of a discontinued operation. Under the new guidance, a discontinued operation may include a component or a group of components of an entity, or a business or nonprofit activity that has been disposed of or is classified as held for sale, and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The ASU also expands the scope to include the disposals of equity method investments and acquired businesses held for sale. The adoption of the guidance by the Company did not have a material impact on its consolidated financial statements. |
In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This ASU is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. The adoption of the guidance by the Company is not expected to have a material impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Currently, the guidance is effective for interim and annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. However, the FASB issued an Exposure Draft proposing the deferral of the effective date for one year, with the option to adopt as of the original effective date. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company is currently evaluating the transition methods and the impact of the standard on its consolidated financial statements. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||
1-May-15 | ||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
Fair value measurements - recurring basis | The following tables present the Company’s financial assets measured at fair value on a recurring basis as of May 1, 2015, May 2, 2014, and January 30, 2015: | |||||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||
(In millions) | Measurement Level | May 1, 2015 | May 2, 2014 | January 30, 2015 | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Money market funds | Level 1 | $ | 59 | $ | 51 | $ | 81 | |||||||||||||||||
Municipal obligations | Level 2 | 20 | 18 | 21 | ||||||||||||||||||||
Certificates of deposit | Level 1 | 16 | 21 | 17 | ||||||||||||||||||||
Municipal floating rate obligations | Level 2 | — | 20 | 6 | ||||||||||||||||||||
Total short-term investments | $ | 95 | $ | 110 | $ | 125 | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Municipal floating rate obligations | Level 2 | $ | 377 | $ | 347 | $ | 348 | |||||||||||||||||
Certificates of deposit | Level 1 | 5 | $ | — | $ | 4 | ||||||||||||||||||
Municipal obligations | Level 2 | 2 | 13 | 2 | ||||||||||||||||||||
Total long-term investments | $ | 384 | $ | 360 | $ | 354 | ||||||||||||||||||
There were no transfers between Levels 1, 2 or 3 during any of the periods presented. | ||||||||||||||||||||||||
Fair value measurements - nonrecurring basis | The following table presents the Company’s non-financial assets measured at estimated fair value on a nonrecurring basis and the resulting long-lived asset impairment losses included in earnings. Because assets subject to long-lived asset impairment were not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at May 1, 2015 and May 2, 2014. | |||||||||||||||||||||||
Fair Value Measurements - Nonrecurring Basis | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
May 1, 2015 | May 2, 2014 | |||||||||||||||||||||||
(In millions) | Fair Value Measurements | Impairment Losses | Fair Value Measurements | Impairment Losses | ||||||||||||||||||||
Assets-held-for-use: | ||||||||||||||||||||||||
Operating locations | $ | 4 | $ | (5 | ) | $ | 9 | $ | (23 | ) | ||||||||||||||
Total | $ | 4 | $ | (5 | ) | $ | 9 | $ | (23 | ) | ||||||||||||||
Fair value of financial instruments | Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease obligations, are as follows: | |||||||||||||||||||||||
May 1, 2015 | May 2, 2014 | January 30, 2015 | ||||||||||||||||||||||
(In millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||
Unsecured notes (Level 1) | $ | 10,861 | $ | 12,231 | $ | 9,617 | $ | 10,777 | $ | 10,860 | $ | 12,739 | ||||||||||||
Mortgage notes (Level 2) | 16 | 17 | 17 | 19 | 16 | 17 | ||||||||||||||||||
Long-term debt (excluding capitalized lease obligations) | $ | 10,877 | $ | 12,248 | $ | 9,634 | $ | 10,796 | $ | 10,876 | $ | 12,756 | ||||||||||||
Extended_Protection_Plans_Tabl
Extended Protection Plans (Tables) | 3 Months Ended | |||||||
1-May-15 | ||||||||
Extended Protection Plans | ||||||||
Changes in deferred revenue for extended protection plan contracts | Changes in deferred revenue for extended protection plan contracts are summarized as follows: | |||||||
Three Months Ended | ||||||||
(In millions) | May 1, 2015 | May 2, 2014 | ||||||
Deferred revenue - extended protection plans, beginning of period | $ | 730 | $ | 730 | ||||
Additions to deferred revenue | 82 | 75 | ||||||
Deferred revenue recognized | (85 | ) | (75 | ) | ||||
Deferred revenue - extended protection plans, end of period | $ | 727 | $ | 730 | ||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||
1-May-15 | ||||||||||||||
Shareholders' Equity | ||||||||||||||
Schedule of share repurchases | Shares repurchased for the three months ended May 1, 2015, and May 2, 2014 were as follows: | |||||||||||||
Three Months Ended | ||||||||||||||
May 1, 2015 | May 2, 2014 | |||||||||||||
(In millions) | Shares | Cost 1 | Shares | Cost 1 | ||||||||||
Share repurchase program | 13.6 | $ | 1,000 | 17.9 | $ | 850 | ||||||||
Shares withheld from employees | 0.8 | 62 | 0.9 | 42 | ||||||||||
Total share repurchases | 14.4 | $ | 1,062 | 18.8 | $ | 892 | ||||||||
1 | Reductions of $961 million and $811 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 1, 2015 and May 2, 2014, respectively. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
1-May-15 | ||||||||
Earnings Per Share | ||||||||
Schedule of earnings per share, basic and diluted | The following table reconciles earnings per common share for the three months ended May 1, 2015, and May 2, 2014. | |||||||
Three Months Ended | ||||||||
(In millions, except per share data) | May 1, 2015 | May 2, 2014 | ||||||
Basic earnings per common share: | ||||||||
Net earnings | $ | 673 | $ | 624 | ||||
Less: Net earnings allocable to participating securities | (3 | ) | (4 | ) | ||||
Net earnings allocable to common shares, basic | $ | 670 | $ | 620 | ||||
Weighted-average common shares outstanding | 950 | 1,015 | ||||||
Basic earnings per common share | $ | 0.7 | $ | 0.61 | ||||
Diluted earnings per common share: | ||||||||
Net earnings | $ | 673 | $ | 624 | ||||
Less: Net earnings allocable to participating securities | (3 | ) | (4 | ) | ||||
Net earnings allocable to common shares, diluted | $ | 670 | $ | 620 | ||||
Weighted-average common shares outstanding | 950 | 1,015 | ||||||
Dilutive effect of non-participating share-based awards | 2 | 2 | ||||||
Weighted-average common shares, as adjusted | 952 | 1,017 | ||||||
Diluted earnings per common share | $ | 0.7 | $ | 0.61 | ||||
Supplemental_Disclosure_Tables
Supplemental Disclosure (Tables) | 3 Months Ended | |||||||
1-May-15 | ||||||||
Supplemental Disclosure | ||||||||
Net interest expense | Net interest expense is comprised of the following: | |||||||
Three Months Ended | ||||||||
(In millions) | May 1, 2015 | May 2, 2014 | ||||||
Long-term debt | $ | 122 | $ | 114 | ||||
Capitalized lease obligations | 11 | 11 | ||||||
Interest income | — | (1 | ) | |||||
Interest capitalized | (1 | ) | — | |||||
Interest on tax uncertainties | — | (2 | ) | |||||
Other | 2 | 2 | ||||||
Interest - net | $ | 134 | $ | 124 | ||||
Supplemental disclosures of cash flow information | Supplemental disclosures of cash flow information: | |||||||
Three Months Ended | ||||||||
(In millions) | May 1, 2015 | May 2, 2014 | ||||||
Cash paid for interest, net of amount capitalized | $ | 233 | $ | 215 | ||||
Cash paid for income taxes - net | $ | 166 | $ | 33 | ||||
Non-cash investing and financing activities: | ||||||||
Non-cash property acquisitions, including assets acquired under capital lease | $ | 4 | $ | 4 | ||||
Cash dividends declared but not paid | $ | 218 | $ | 183 | ||||
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], Estimate of Fair Value [Member], USD $) | 1-May-15 | Jan. 30, 2015 | 2-May-14 |
In Millions, unless otherwise specified | |||
Short-term Investments [Member] | |||
Available-for-sale Securities | |||
Fair Value | $95 | $125 | $110 |
Short-term Investments [Member] | Money Market Funds [Member] | Fair Value (Level 1) [Member] | |||
Available-for-sale Securities | |||
Fair Value | 59 | 81 | 51 |
Short-term Investments [Member] | Municipal Obligations [Member] | Fair Value (Level 2) [Member] | |||
Available-for-sale Securities | |||
Fair Value | 20 | 21 | 18 |
Short-term Investments [Member] | Certificates Of Deposit [Member] | Fair Value (Level 1) [Member] | |||
Available-for-sale Securities | |||
Fair Value | 16 | 17 | 21 |
Short-term Investments [Member] | Municipal Floating Rate Obligations [Member] | Fair Value (Level 2) [Member] | |||
Available-for-sale Securities | |||
Fair Value | 0 | 6 | 20 |
Long-term Investments [Member] | |||
Available-for-sale Securities | |||
Fair Value | 384 | 354 | 360 |
Long-term Investments [Member] | Municipal Obligations [Member] | Fair Value (Level 2) [Member] | |||
Available-for-sale Securities | |||
Fair Value | 2 | 2 | 13 |
Long-term Investments [Member] | Certificates Of Deposit [Member] | Fair Value (Level 1) [Member] | |||
Available-for-sale Securities | |||
Fair Value | 5 | 4 | 0 |
Long-term Investments [Member] | Municipal Floating Rate Obligations [Member] | Fair Value (Level 2) [Member] | |||
Available-for-sale Securities | |||
Fair Value | $377 | $348 | $347 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Fair Value, Measurements, Nonrecurring [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 |
Fair Value Disclosures | ||
Long-lived asset impairment losses | ($5) | ($23) |
Estimate of Fair Value [Member] | Fair Value (Level 3) [Member] | ||
Fair Value Disclosures | ||
Fair value measurement | 4 | 9 |
Operating Locations [Member] | ||
Assets held-for-use | ||
Long-lived asset impairment losses | -5 | -23 |
Operating Locations [Member] | Estimate of Fair Value [Member] | Fair Value (Level 3) [Member] | ||
Assets held-for-use | ||
Fair value measurement | $4 | $9 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | 1-May-15 | Jan. 30, 2015 | 2-May-14 |
In Millions, unless otherwise specified | |||
Financial Instruments | |||
Long-term debt carrying value (excluding capitalized lease obligations) | $10,877 | $10,876 | $9,634 |
Unsecured Notes [Member] | |||
Financial Instruments | |||
Long-term debt carrying value (excluding capitalized lease obligations) | 10,861 | 10,860 | 9,617 |
Mortgage Notes [Member] | |||
Financial Instruments | |||
Long-term debt carrying value (excluding capitalized lease obligations) | 16 | 16 | 17 |
Estimate of Fair Value [Member] | |||
Financial Instruments | |||
Long-term debt fair value (excluding capitalized lease obligations) | 12,248 | 12,756 | 10,796 |
Estimate of Fair Value [Member] | Unsecured Notes [Member] | Fair Value (Level 1) [Member] | |||
Financial Instruments | |||
Long-term debt fair value (excluding capitalized lease obligations) | 12,231 | 12,739 | 10,777 |
Estimate of Fair Value [Member] | Mortgage Notes [Member] | Fair Value (Level 2) [Member] | |||
Financial Instruments | |||
Long-term debt fair value (excluding capitalized lease obligations) | $17 | $17 | $19 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details Textual) (Fair Value, Measurements, Nonrecurring [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 |
Quantitative Disclosures of Fair Value Information | ||
Impairment losses | $5 | $23 |
Operating Locations [Member] | ||
Quantitative Disclosures of Fair Value Information | ||
Number of locations that experienced a triggering event | 1 | |
Number of locations impaired during the period | 1 | |
Impairment losses | $5 | |
Discount rate | 6.20% | |
Operating Locations [Member] | Minimum [Member] | ||
Quantitative Disclosures of Fair Value Information | ||
Sales growth rate used in discounted cash flow model | 2.70% | |
Operating Locations [Member] | Maximum [Member] | ||
Quantitative Disclosures of Fair Value Information | ||
Sales growth rate used in discounted cash flow model | 7.00% |
Restricted_Investment_Balances1
Restricted Investment Balances (Details) (USD $) | 1-May-15 | Jan. 30, 2015 | 2-May-14 |
In Millions, unless otherwise specified | |||
Restricted Investment Balances | |||
Restricted balances included in short-term investments | $74 | $99 | $87 |
Restricted balances included in long-term investments | $311 | $305 | $328 |
Property_Details
Property (Details) (USD $) | 1-May-15 | Jan. 30, 2015 | 2-May-14 |
In Billions, unless otherwise specified | |||
Property | |||
Accumulated depreciation | $15.80 | $15.40 | $14.60 |
Extended_Protection_Plans_Deta
Extended Protection Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 |
Changes in deferred revenue for extended protection plan contracts | ||
Deferred revenue - extended protection plans, beginning of period | $730 | $730 |
Additions to deferred revenue | 82 | 75 |
Deferred revenue recognized | -85 | -75 |
Deferred revenue - extended protection plans, end of period | $727 | $730 |
Extended_Protection_Plans_Deta1
Extended Protection Plans (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 | Jan. 30, 2015 |
Extended Protection Plans | |||
Deferred costs associated with extended protection plan contracts | $27 | $46 | $30 |
Expenses for claims incurred | $29 | $29 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | |||
Share data in Millions, unless otherwise specified | 1-May-15 | 2-May-14 | ||
Shareholders' Equity | ||||
Reduction in retained earnings | $961,000,000 | $811,000,000 | ||
Share Repurchases | ||||
Share repurchases, value | 1,062,000,000 | [1] | 892,000,000 | [1] |
Share repurchases, shares | 14.4 | 18.8 | ||
Share Repurchase Program [Member] | ||||
Share Repurchases | ||||
Share repurchases, value | 1,000,000,000 | [1] | 850,000,000 | [1] |
Share repurchases, shares | 13.6 | 17.9 | ||
Shares Withheld from Employees [Member] | ||||
Share Repurchases | ||||
Share repurchases, value | $62,000,000 | [1] | $42,000,000 | [1] |
Share repurchases, shares | 0.8 | 0.9 | ||
[1] | Reductions of $961 million and $811 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended MayB 1, 2015 and MayB 2, 2014, respectively. |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textual) (USD $) | 3 Months Ended | 0 Months Ended | |||||
Share data in Millions, unless otherwise specified | 1-May-15 | 2-May-14 | Mar. 31, 2015 | Jan. 31, 2014 | Mar. 20, 2015 | ||
Share Repurchases | |||||||
Share repurchases, value | $1,062,000,000 | [1] | $892,000,000 | [1] | |||
Share repurchases, shares | 14.4 | 18.8 | |||||
Cash used to repurchase shares | 1,109,000,000 | 910,000,000 | |||||
Share Repurchase Program [Member] | |||||||
Share Repurchases | |||||||
Share repurchases, value | 1,000,000,000 | [1] | 850,000,000 | [1] | |||
Share repurchases, shares | 13.6 | 17.9 | |||||
Remaining share repurchases authorization, value | 6,400,000,000 | ||||||
January 31, 2014 Share Repurchase Program [Member] | |||||||
Share Repurchases | |||||||
Share repurchases authorized, value | 5,000,000,000 | ||||||
March 20, 2015 Share Repurchase Program [Member] | |||||||
Share Repurchases | |||||||
Share repurchases authorized, value | 5,000,000,000 | ||||||
March 2015 Accelerated Share Repurchase Agreement Purchases [Member] | |||||||
Share Repurchases | |||||||
Share repurchases, value | 500,000,000 | ||||||
Share repurchases, shares | 1.1 | 5.7 | |||||
Cash used to repurchase shares | 500,000,000 | ||||||
Open market purchases [Member] | |||||||
Share Repurchases | |||||||
Share repurchases, value | $500,000,000 | ||||||
Share repurchases, shares | 6.8 | ||||||
[1] | Reductions of $961 million and $811 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended MayB 1, 2015 and MayB 2, 2014, respectively. |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
1-May-15 | 2-May-14 | |
Income Taxes | ||
Effective income tax rate | 38.70% | 33.80% |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 1-May-15 | 2-May-14 |
Basic earnings per common share: | ||
Net earnings | $673 | $624 |
Less: Net earnings allocable to participating securities | -3 | -4 |
Net earnings allocable to common shares, basic | 670 | 620 |
Weighted-average common shares outstanding | 950 | 1,015 |
Basic earnings per common share | $0.70 | $0.61 |
Diluted earnings per common share: | ||
Net earnings | 673 | 624 |
Less: Net earnings allocable to participating securities | -3 | -4 |
Net earnings allocable to common shares, diluted | $670 | $620 |
Weighted-average common shares outstanding | 950 | 1,015 |
Dilutive effect of non-participating share-based awards | 2 | 2 |
Weighted-average common shares, as adjusted | 952 | 1,017 |
Diluted earnings per common share | $0.70 | $0.61 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended |
1-May-15 | |
Earnings Per Share | |
Anti-dilutive securities | 0 |
Supplemental_Disclosure_Detail
Supplemental Disclosure (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 |
Net interest expense | ||
Long-term debt | $122 | $114 |
Capitalized lease obligations | 11 | 11 |
Interest income | 0 | -1 |
Interest capitalized | -1 | 0 |
Interest on tax uncertainties | 0 | -2 |
Other | 2 | 2 |
Interest - net | $134 | $124 |
Supplemental_Disclosure_Detail1
Supplemental Disclosure (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 2-May-14 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest, net of amount capitalized | $233 | $215 |
Cash paid for income taxes, net | 166 | 33 |
Non-cash investing and financing activities: | ||
Non-cash property acquisitions, including assets acquired under capital lease | 4 | 4 |
Cash dividends declared but not paid | $218 | $183 |