Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 05, 2017 | Jun. 02, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LOWES COMPANIES INC | |
Entity Central Index Key | 60,667 | |
Document Type | 10-Q | |
Document Period End Date | May 5, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --02-02 | |
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 | 844,226,444 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 05, 2017 | Feb. 03, 2017 | Apr. 29, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 1,963 | $ 558 | $ 4,561 |
Short-term investments | 84 | 100 | 174 |
Merchandise inventory - net | 12,254 | 10,458 | 11,055 |
Other current assets | 975 | 884 | 683 |
Total current assets | 15,276 | 12,000 | 16,473 |
Property, less accumulated depreciation | 19,748 | 19,949 | 19,463 |
Long-term investments | 477 | 366 | 400 |
Deferred income taxes - net | 272 | 222 | 154 |
Goodwill | 1,081 | 1,082 | 154 |
Other assets | 759 | 789 | 533 |
Total assets | 37,613 | 34,408 | 37,177 |
Current liabilities: | |||
Short-term borrowings | 0 | 510 | 0 |
Current maturities of long-term debt | 295 | 795 | 1,083 |
Accounts payable | 9,905 | 6,651 | 8,821 |
Accrued compensation and employee benefits | 725 | 790 | 615 |
Deferred revenue | 1,415 | 1,253 | 1,233 |
Other current liabilities | 2,346 | 1,975 | 2,369 |
Total current liabilities | 14,686 | 11,974 | 14,121 |
Long-term debt, excluding current maturities | 15,770 | 14,394 | 14,322 |
Deferred revenue - extended protection plans | 769 | 763 | 726 |
Other liabilities | 857 | 843 | 796 |
Total liabilities | 32,082 | 27,974 | 29,965 |
Equity: | |||
Preferred stock - $5 par value, none issued | 0 | 0 | 0 |
Common stock - $.50 par value; Shares issued and outstanding 853 at May 5, 2017, 894 at April 29, 2016, and 866 at February 3, 2017 | 426 | 433 | 447 |
Capital in excess of par value | 0 | 0 | 0 |
Retained earnings | 5,346 | 6,241 | 7,074 |
Accumulated other comprehensive loss | (241) | (240) | (309) |
Total equity | 5,531 | 6,434 | 7,212 |
Total liabilities and equity | $ 37,613 | $ 34,408 | $ 37,177 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | May 05, 2017 | Feb. 03, 2017 | Apr. 29, 2016 |
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 | 853,000,000 | 866,000,000 | 894,000,000 |
Common stock, shares outstanding | 853,000,000 | 866,000,000 | 894,000,000 |
Consolidated Statements of Curr
Consolidated Statements of Current and Retained Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Current Earnings | ||
Net sales | $ 16,860 | $ 15,234 |
Cost of sales | 11,060 | 9,897 |
Gross margin | 5,800 | 5,337 |
Expenses: | ||
Selling, general and administrative | 3,876 | 3,391 |
Depreciation and amortization | 365 | 360 |
Operating income | 1,559 | 1,586 |
Interest - net | 161 | 156 |
Loss on extinguishment of debt | (464) | 0 |
Pre-tax earnings | 934 | 1,430 |
Income tax provision | 332 | 546 |
Net earnings | $ 602 | $ 884 |
Weighted-average common shares outstanding - basic | 857 | 897 |
Basic earnings per common share | $ 0.70 | $ 0.98 |
Weighted-average common shares outstanding - diluted | 858 | 899 |
Diluted earnings per common share | $ 0.70 | $ 0.98 |
Cash dividends per share | $ 0.35 | $ 0.28 |
Retained Earnings | ||
Balance at beginning of period | $ 6,241 | $ 7,593 |
Net earnings | 602 | 884 |
Cash dividends declared | (299) | (251) |
Share repurchases | (1,198) | (1,152) |
Balance at end of period | $ 5,346 | $ 7,074 |
Consolidated Statements of Cur5
Consolidated Statements of Current and Retained Earnings (Percents) (Unaudited) | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Current Earnings | ||
Net sales | 100.00% | 100.00% |
Cost of sales | 65.60% | 64.96% |
Gross margin | 34.40% | 35.04% |
Expenses: | ||
Selling, general and administrative | 22.99% | 22.26% |
Depreciation and amortization | 2.16% | 2.36% |
Operating income | 9.25% | 10.42% |
Interest - net | 0.96% | 1.03% |
Loss on extinguishment of debt | 2.75% | 0.00% |
Pre-tax earnings | 5.54% | 9.39% |
Income tax provision | 1.97% | 3.59% |
Net earnings | 3.57% | 5.80% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Comprehensive Income | ||
Net earnings | $ 602 | $ 884 |
Foreign currency translation adjustments - net of tax | (1) | 83 |
Other comprehensive income/(loss) | (1) | 83 |
Comprehensive income | $ 601 | $ 967 |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Percents) (Unaudited) | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Comprehensive Income | ||
Net earnings | 3.57% | 5.80% |
Foreign currency translation adjustments - net of tax | 0.00% | 0.55% |
Other comprehensive income/(loss) | 0.00% | 0.55% |
Comprehensive income | 3.57% | 6.35% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 602 | $ 884 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 389 | 383 |
Deferred income taxes | (64) | 52 |
Loss on property and other assets - net | 11 | 11 |
Loss on extinguishment of debt | 464 | 0 |
Loss on cost method and equity method investments | (7) | (3) |
Share-based payment expense | 26 | 25 |
Changes in operating assets and liabilities: | ||
Merchandise inventory - net | (1,808) | (1,556) |
Other operating assets | (64) | (186) |
Accounts payable | 3,291 | 3,169 |
Other operating liabilities | 441 | 435 |
Net cash provided by operating activities | 3,295 | 3,220 |
Cash flows from investing activities: | ||
Purchases of investments | (153) | (310) |
Proceeds from sale/maturity of investments | 59 | 264 |
Capital expenditures | (202) | (208) |
Proceeds from sale of property and other long-term assets | 6 | 11 |
Purchases of derivative instruments | 0 | (103) |
Other - net | (1) | (3) |
Net cash used in investing activities | (291) | (349) |
Cash flows from financing activities: | ||
Net change in short-term borrowings | (511) | (44) |
Net proceeds from issuance of long-term debt | 2,968 | 3,267 |
Repayment of long-term debt | (2,558) | (484) |
Proceeds from issuance of common stock under share-based payment plans | 38 | 20 |
Cash dividend payments | (304) | (255) |
Repurchase of common stock | (1,237) | (1,253) |
Other - net | (1) | 33 |
Net cash provided by (used in) financing activities | (1,605) | 1,284 |
Effect of exchange rate changes on cash | 6 | 1 |
Net increase in cash and cash equivalents | 1,405 | 4,156 |
Cash and cash equivalents, beginning of period | 558 | 405 |
Cash and cash equivalents, end of period | $ 1,963 | $ 4,561 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 05, 2017 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 : Summary of Significant Accounting Policies 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 (GAAP). The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of May 5, 2017 , and April 29, 2016 , and the results of operations, comprehensive income and cash flows for the three months ended May 5, 2017 , and April 29, 2016 . 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 February 3, 2017 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Reclassifications Certain prior period amounts have been reclassified to conform to current presentation. Recent Accounting Pronouncements Effective February 4, 2017, the Company adopted Accounting Standards Update (ASU 2016-09), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Upon adoption of the ASU, all excess tax benefits or deficiencies related to share-based payments are recognized in the provision for income taxes, which will increase the volatility within our provision for income taxes, as these amounts were previously reported within equity. As a result of the adoption, we recognized $23 million of excess tax benefits in our provision for income taxes for the three months ended May 5, 2017 . The recognition of these benefits contributed $0.03 to diluted earnings per share. Excess tax benefits were historically reflected as a financing activity in the statements of cash flows, and after adoption, are included within operating activities. Cash paid to tax authorities by the Company when directly withholding shares for tax purposes continue to be classified as a financing activity in the statement of cash flows. Share-based payment expense will continue to reflect estimated forfeitures of share-based payment awards. The Company has adopted the applicable provisions of the ASU prospectively. Effective February 4, 2017, the Company adopted ASU 2015-11, Simplifying the Measurement of Inventory. The ASU requires entities using the first-in, first-out (FIFO) inventory costing method to subsequently value inventory at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The ASU eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation to the identified assets and liabilities of the reporting unit to measure goodwill impairment. Under the amendments in this update, a goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements but expects the ASU to have a material impact on its consolidated balance sheets, as a result of the requirement to recognize right-of-use assets and lease liabilities. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities . The ASU requires, among other things, that entities measure equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) at fair value, with changes in fair value recognized in net income. Under this ASU, entities will no longer be able to recognize unrealized holding gains and losses on available-for-sale equity securities in other comprehensive income, and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. The guidance for classifying and measuring investments in debt securities and loans is not impacted. The ASU eliminates certain disclosure requirements related to financial instruments measured at amortized cost and adds disclosures related to the measurement categories of financial assets and financial liabilities. The guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted for only certain portions of the ASU. The adoption of this 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. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of the ASU to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company continues to evaluate the impact of adopting of this standard and its subsequent related amendments and interpretations. However, based on our preliminary assessment, we do not expect the standard to materially affect our consolidated financial statements. We have determined the adoption of the guidance will impact the timing of recognition of our stored value card breakage. Currently, breakage is recognized using the remote method and will be recognized using the proportional method upon adoption of the guidance. The Company is also evaluating principal verses agent conclusions as it relates to certain arrangements with third parties that could impact the presentation of revenue on a gross or net basis. We do not intend to early adopt the guidance, and based on our initial assessment of potential impacts to our consolidated financial statements, we expect to use a modified retrospective approach to adoption. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 05, 2017 | |
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 table presents the Company’s financial assets measured at fair value on a recurring basis as of May 5, 2017 , April 29, 2016 , and February 3, 2017 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level May 5, 2017 April 29, 2016 February 3, 2017 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 70 $ 28 $ 81 Certificates of deposit Level 1 12 97 15 Municipal obligations Level 2 2 34 4 Municipal floating rate obligations Level 2 — 15 — Total short-term investments $ 84 $ 174 $ 100 Other current assets: Foreign exchange options Level 2 $ — $ 263 $ — Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 472 $ 392 $ 359 Certificates of deposit Level 1 3 4 2 Municipal obligations Level 2 2 4 5 Total long-term investments $ 477 $ 400 $ 366 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, foreign currency exchange rates, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. Derivative Instruments To manage the foreign currency exchange rate risk of the Company’s acquisition of RONA in the prior year, the Company entered into an option to purchase 3.2 billion Canadian dollars expiring November 1, 2016, which was not eligible to be accounted for as a hedging instrument. For the three months ended April 29, 2016 , the Company recorded a net unrealized gain of $160 million in SG&A expense. The premium paid for this option of $103 million is shown within cash flows from investing activities in the consolidated statements of cash flows. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis During the three months ended May 5, 2017 and April 29, 2016 , the Company had no significant measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. 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 5, 2017 April 29, 2016 February 3, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 15,203 $ 15,948 $ 14,863 $ 16,532 $ 14,321 $ 15,305 Mortgage notes (Level 2) 7 7 7 8 7 7 Long-term debt (excluding capitalized lease obligations) $ 15,210 $ 15,955 $ 14,870 $ 16,540 $ 14,328 $ 15,312 |
Restricted Investment Balances
Restricted Investment Balances | 3 Months Ended |
May 05, 2017 | |
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 $70 million at May 5, 2017 , $70 million at April 29, 2016 , and $81 million at February 3, 2017 . Restricted balances included in long-term investments were $340 million at May 5, 2017 , $303 million at April 29, 2016 , and $354 million at February 3, 2017 . |
Property
Property | 3 Months Ended |
May 05, 2017 | |
Property | |
Property | Note 4 : Property - Property is shown net of accumulated depreciation of $16.9 billion at May 5, 2017 , $16.6 billion at April 29, 2016 , and $17.0 billion at February 3, 2017 . |
Extended Protection Plans
Extended Protection Plans | 3 Months Ended |
May 05, 2017 | |
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 5, 2017 April 29, 2016 Deferred revenue - extended protection plans, beginning of period $ 763 $ 729 Additions to deferred revenue 96 86 Deferred revenue recognized (90 ) (89 ) Deferred revenue - extended protection plans, end of period $ 769 $ 726 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 $18 million for all periods presented. 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 periods presented. Expenses for claims are recognized when incurred and totaled $36 million and $30 million for the three months ended May 5, 2017 and April 29, 2016 , respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
May 05, 2017 | |
Long-Term Debt | |
Long-term Debt | Note 6 : Long-Term Debt - During the first quarter, the Company issued $3.0 billion of unsecured notes as follows: Issue Date Principal Amount (in millions) Maturity Date Fixed vs. Floating Interest Rate Discount (in millions) May 3, 2017 $ 1,500 May 2027 Fixed 3.100% $ 9 May 3, 2017 $ 1,500 May 2047 Fixed 4.050% $ 23 Interest on the notes issued in 2017 is payable semiannually in arrears in May and November of each year until maturity. The indenture governing the notes issued in 2017 contains a provision that allows the Company to redeem these notes at any time, in whole or in part, at specified redemption prices, plus accrued and unpaid interest, to the date of redemption. The indenture 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 of control provisions, the repurchase of the notes will occur at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any, on such notes to the date of purchase. The indenture governing the notes does not limit the aggregate principal amount of debt securities that the Company may issue and does not require the Company to maintain specified financial ratios or levels of net worth or liquidity. However, the indenture includes various restrictive covenants, none of which is expected to impact the Company’s liquidity or capital resources. Also during the first quarter, the Company completed a cash tender offer to purchase and retire $1.6 billion combined aggregate principal amount of our outstanding notes and recognized a loss on extinguishment of debt of $464 million . |
Equity
Equity | 3 Months Ended |
May 05, 2017 | |
Equity | |
Equity | Note 7 : 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 27, 2017, the Company’s Board of Directors authorized a $5.0 billion share repurchase program with no expiration, which was announced on the same day. As of May 5, 2017 , the Company had $3.8 billion remaining in its share repurchase program. In March 2017, 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 5.3 million shares. The Company finalized the transaction and received an additional 0.8 million shares prior to the end of the quarter. 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 received 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 5, 2017 , the Company also repurchased shares of its common stock through the open market totaling 9.1 million shares for a cost of $750 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 5, 2017 , and April 29, 2016 were as follows: Three Months Ended May 5, 2017 April 29, 2016 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 15.2 $ 1,250 15.9 $ 1,200 Shares withheld from employees 0.2 14 0.7 52 Total share repurchases 15.4 $ 1,264 16.6 $ 1,252 1 Reductions of $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 5, 2017 and April 29, 2016 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 05, 2017 | |
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 5, 2017 , and April 29, 2016 : Three Months Ended (In millions, except per share data) May 5, 2017 April 29, 2016 Basic earnings per common share: Net earnings $ 602 $ 884 Less: Net earnings allocable to participating securities (2 ) (4 ) Net earnings allocable to common shares, basic $ 600 $ 880 Weighted-average common shares outstanding 857 897 Basic earnings per common share $ 0.70 $ 0.98 Diluted earnings per common share: Net earnings $ 602 $ 884 Less: Net earnings allocable to participating securities (2 ) (4 ) Net earnings allocable to common shares, diluted $ 600 $ 880 Weighted-average common shares outstanding 857 897 Dilutive effect of non-participating share-based awards 1 2 Weighted-average common shares, as adjusted 858 899 Diluted earnings per common share $ 0.70 $ 0.98 Stock options to purchase 0.8 million shares of common stock were anti-dilutive for the three months ended May 5, 2017 and April 29, 2016 . |
Income Taxes
Income Taxes | 3 Months Ended |
May 05, 2017 | |
Income Taxes | |
Income Taxes | Note 9 : Income Taxes - The Company’s effective income tax rates were 35.5% and 38.2% for the three months ended May 5, 2017 and April 29, 2016 , respectively. The lower effective rate for the three months ended May 5, 2017 was primarily due to the recognition of excess tax benefits related to share-based payments after the adoption of ASU 2016-09. See Note 1 to the consolidated financial statements included herein for more information regarding ASU 2016-09. |
Supplemental Disclosure
Supplemental Disclosure | 3 Months Ended |
May 05, 2017 | |
Supplemental Disclosure | |
Supplemental Disclosure | Note 10 : Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended (In millions) May 5, 2017 April 29, 2016 Long-term debt $ 145 $ 134 Capitalized lease obligations 14 11 Interest income (3 ) (2 ) Interest capitalized (1 ) (1 ) Interest on tax uncertainties — 2 Other 6 12 Interest - net $ 161 $ 156 Supplemental disclosures of cash flow information: Three Months Ended (In millions) May 5, 2017 April 29, 2016 Cash paid for interest, net of amount capitalized $ 285 $ 259 Cash paid for income taxes - net $ 43 $ 52 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 3 $ 17 Cash dividends declared but not paid $ 299 $ 251 |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 05, 2017 | |
Subsequent Events | |
Subsequent Events | Note 11 : Subsequent Events - On May 12, 2017, t he Company entered into a definitive agreement to acquire Maintenance Supply Headquarters for a total transaction price of approximately $512 million . Maintenance Supply Headquarters is a leading distributor of maintenance, repair and operations products to the multifamily housing industry. The acquisition is expected to be completed in Lowe’s second quarter of 2017, following the receipt of regulatory approval. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 05, 2017 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | 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 (GAAP). The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of May 5, 2017 , and April 29, 2016 , and the results of operations, comprehensive income and cash flows for the three months ended May 5, 2017 , and April 29, 2016 . 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 February 3, 2017 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective February 4, 2017, the Company adopted Accounting Standards Update (ASU 2016-09), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Upon adoption of the ASU, all excess tax benefits or deficiencies related to share-based payments are recognized in the provision for income taxes, which will increase the volatility within our provision for income taxes, as these amounts were previously reported within equity. As a result of the adoption, we recognized $23 million of excess tax benefits in our provision for income taxes for the three months ended May 5, 2017 . The recognition of these benefits contributed $0.03 to diluted earnings per share. Excess tax benefits were historically reflected as a financing activity in the statements of cash flows, and after adoption, are included within operating activities. Cash paid to tax authorities by the Company when directly withholding shares for tax purposes continue to be classified as a financing activity in the statement of cash flows. Share-based payment expense will continue to reflect estimated forfeitures of share-based payment awards. The Company has adopted the applicable provisions of the ASU prospectively. Effective February 4, 2017, the Company adopted ASU 2015-11, Simplifying the Measurement of Inventory. The ASU requires entities using the first-in, first-out (FIFO) inventory costing method to subsequently value inventory at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The ASU eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation to the identified assets and liabilities of the reporting unit to measure goodwill impairment. Under the amendments in this update, a goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements but expects the ASU to have a material impact on its consolidated balance sheets, as a result of the requirement to recognize right-of-use assets and lease liabilities. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities . The ASU requires, among other things, that entities measure equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) at fair value, with changes in fair value recognized in net income. Under this ASU, entities will no longer be able to recognize unrealized holding gains and losses on available-for-sale equity securities in other comprehensive income, and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. The guidance for classifying and measuring investments in debt securities and loans is not impacted. The ASU eliminates certain disclosure requirements related to financial instruments measured at amortized cost and adds disclosures related to the measurement categories of financial assets and financial liabilities. The guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted for only certain portions of the ASU. The adoption of this 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. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of the ASU to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company continues to evaluate the impact of adopting of this standard and its subsequent related amendments and interpretations. However, based on our preliminary assessment, we do not expect the standard to materially affect our consolidated financial statements. We have determined the adoption of the guidance will impact the timing of recognition of our stored value card breakage. Currently, breakage is recognized using the remote method and will be recognized using the proportional method upon adoption of the guidance. The Company is also evaluating principal verses agent conclusions as it relates to certain arrangements with third parties that could impact the presentation of revenue on a gross or net basis. We do not intend to early adopt the guidance, and based on our initial assessment of potential impacts to our consolidated financial statements, we expect to use a modified retrospective approach to adoption. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 05, 2017 | |
Fair Value Measurements | |
Fair value measurements - recurring basis | The following table presents the Company’s financial assets measured at fair value on a recurring basis as of May 5, 2017 , April 29, 2016 , and February 3, 2017 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level May 5, 2017 April 29, 2016 February 3, 2017 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 70 $ 28 $ 81 Certificates of deposit Level 1 12 97 15 Municipal obligations Level 2 2 34 4 Municipal floating rate obligations Level 2 — 15 — Total short-term investments $ 84 $ 174 $ 100 Other current assets: Foreign exchange options Level 2 $ — $ 263 $ — Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 472 $ 392 $ 359 Certificates of deposit Level 1 3 4 2 Municipal obligations Level 2 2 4 5 Total long-term investments $ 477 $ 400 $ 366 There were no transfers between Levels 1, 2 or 3 during any of the periods presented. |
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 5, 2017 April 29, 2016 February 3, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 15,203 $ 15,948 $ 14,863 $ 16,532 $ 14,321 $ 15,305 Mortgage notes (Level 2) 7 7 7 8 7 7 Long-term debt (excluding capitalized lease obligations) $ 15,210 $ 15,955 $ 14,870 $ 16,540 $ 14,328 $ 15,312 |
Extended Protection Plans (Tabl
Extended Protection Plans (Tables) | 3 Months Ended |
May 05, 2017 | |
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 5, 2017 April 29, 2016 Deferred revenue - extended protection plans, beginning of period $ 763 $ 729 Additions to deferred revenue 96 86 Deferred revenue recognized (90 ) (89 ) Deferred revenue - extended protection plans, end of period $ 769 $ 726 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
May 05, 2017 | |
Long-Term Debt | |
Schedule of unsecured notes issued in fiscal 2017 | During the first quarter, the Company issued $3.0 billion of unsecured notes as follows: Issue Date Principal Amount (in millions) Maturity Date Fixed vs. Floating Interest Rate Discount (in millions) May 3, 2017 $ 1,500 May 2027 Fixed 3.100% $ 9 May 3, 2017 $ 1,500 May 2047 Fixed 4.050% $ 23 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
May 05, 2017 | |
Equity | |
Schedule of share repurchases | Shares repurchased for the three months ended May 5, 2017 , and April 29, 2016 were as follows: Three Months Ended May 5, 2017 April 29, 2016 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 15.2 $ 1,250 15.9 $ 1,200 Shares withheld from employees 0.2 14 0.7 52 Total share repurchases 15.4 $ 1,264 16.6 $ 1,252 1 Reductions of $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 5, 2017 and April 29, 2016 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 05, 2017 | |
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 5, 2017 , and April 29, 2016 : Three Months Ended (In millions, except per share data) May 5, 2017 April 29, 2016 Basic earnings per common share: Net earnings $ 602 $ 884 Less: Net earnings allocable to participating securities (2 ) (4 ) Net earnings allocable to common shares, basic $ 600 $ 880 Weighted-average common shares outstanding 857 897 Basic earnings per common share $ 0.70 $ 0.98 Diluted earnings per common share: Net earnings $ 602 $ 884 Less: Net earnings allocable to participating securities (2 ) (4 ) Net earnings allocable to common shares, diluted $ 600 $ 880 Weighted-average common shares outstanding 857 897 Dilutive effect of non-participating share-based awards 1 2 Weighted-average common shares, as adjusted 858 899 Diluted earnings per common share $ 0.70 $ 0.98 |
Supplemental Disclosure (Tables
Supplemental Disclosure (Tables) | 3 Months Ended |
May 05, 2017 | |
Supplemental Disclosure | |
Net interest expense | Net interest expense is comprised of the following: Three Months Ended (In millions) May 5, 2017 April 29, 2016 Long-term debt $ 145 $ 134 Capitalized lease obligations 14 11 Interest income (3 ) (2 ) Interest capitalized (1 ) (1 ) Interest on tax uncertainties — 2 Other 6 12 Interest - net $ 161 $ 156 |
Supplemental disclosures of cash flow information | Supplemental disclosures of cash flow information: Three Months Ended (In millions) May 5, 2017 April 29, 2016 Cash paid for interest, net of amount capitalized $ 285 $ 259 Cash paid for income taxes - net $ 43 $ 52 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 3 $ 17 Cash dividends declared but not paid $ 299 $ 251 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax provision | $ 332 | $ 546 |
Diluted earnings per common share | $ 0.70 | $ 0.98 |
Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax provision | $ (23) | |
Diluted earnings per common share | $ 0.03 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - Estimate of Fair Value [Member] - USD ($) $ in Millions | May 05, 2017 | Feb. 03, 2017 | Apr. 29, 2016 |
Short-term Investments [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | $ 84 | $ 100 | $ 174 |
Short-term Investments [Member] | Money Market Funds [Member] | Fair Value (Level 1) [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | 70 | 81 | 28 |
Short-term Investments [Member] | Certificates Of Deposit [Member] | Fair Value (Level 1) [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | 12 | 15 | 97 |
Short-term Investments [Member] | Municipal Obligations [Member] | Fair Value (Level 2) [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | 2 | 4 | 34 |
Short-term Investments [Member] | Municipal Floating Rate Obligations [Member] | Fair Value (Level 2) [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | 0 | 0 | 15 |
Other Current Assets [Member] | Fair Value (Level 2) [Member] | |||
Assets, Fair Value Disclosure | |||
Foreign exchange options, fair value | 0 | 0 | 263 |
Long-term Investments [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | 477 | 366 | 400 |
Long-term Investments [Member] | Certificates Of Deposit [Member] | Fair Value (Level 1) [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | 3 | 2 | 4 |
Long-term Investments [Member] | Municipal Obligations [Member] | Fair Value (Level 2) [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | 2 | 5 | 4 |
Long-term Investments [Member] | Municipal Floating Rate Obligations [Member] | Fair Value (Level 2) [Member] | |||
Assets, Fair Value Disclosure | |||
Available-for-sale securities, fair value | $ 472 | $ 359 | $ 392 |
Fair Value Measurements (Deta29
Fair Value Measurements (Details 1) - USD ($) $ in Millions | May 05, 2017 | Feb. 03, 2017 | Apr. 29, 2016 |
Financial Instruments | |||
Long-term debt carrying value (excluding capitalized lease obligations) | $ 15,210 | $ 14,328 | $ 14,870 |
Unsecured Notes [Member] | |||
Financial Instruments | |||
Long-term debt carrying value (excluding capitalized lease obligations) | 15,203 | 14,321 | 14,863 |
Mortgage Notes [Member] | |||
Financial Instruments | |||
Long-term debt carrying value (excluding capitalized lease obligations) | 7 | 7 | 7 |
Estimate of Fair Value [Member] | |||
Financial Instruments | |||
Long-term debt fair value (excluding capitalized lease obligations) | 15,955 | 15,312 | 16,540 |
Estimate of Fair Value [Member] | Unsecured Notes [Member] | Fair Value (Level 1) [Member] | |||
Financial Instruments | |||
Long-term debt fair value (excluding capitalized lease obligations) | 15,948 | 15,305 | 16,532 |
Estimate of Fair Value [Member] | Mortgage Notes [Member] | Fair Value (Level 2) [Member] | |||
Financial Instruments | |||
Long-term debt fair value (excluding capitalized lease obligations) | $ 7 | $ 7 | $ 8 |
Fair Value Measurements (Deta30
Fair Value Measurements (Details Textual) $ in Millions, CAD in Billions | 3 Months Ended | ||
May 05, 2017USD ($) | Apr. 29, 2016USD ($) | Apr. 29, 2016CAD | |
Derivatives, Fair Value [Line Items] | |||
Purchases of derivative instruments, investing activities | $ 0 | $ 103 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Option [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, notional amount | CAD | CAD 3.2 | ||
Gain (loss) on derivative, net | 160 | ||
Purchases of derivative instruments, investing activities | $ 103 |
Restricted Investment Balances
Restricted Investment Balances (Details) - USD ($) $ in Millions | May 05, 2017 | Feb. 03, 2017 | Apr. 29, 2016 |
Restricted Investment Balances | |||
Restricted balances included in short-term investments | $ 70 | $ 81 | $ 70 |
Restricted balances included in long-term investments | $ 340 | $ 354 | $ 303 |
Property (Details)
Property (Details) - USD ($) $ in Billions | May 05, 2017 | Feb. 03, 2017 | Apr. 29, 2016 |
Property | |||
Accumulated depreciation | $ 16.9 | $ 17 | $ 16.6 |
Extended Protection Plans (Deta
Extended Protection Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Changes in deferred revenue for extended protection plan contracts | ||
Deferred revenue - extended protection plans, beginning of period | $ 763 | $ 729 |
Additions to deferred revenue | 96 | 86 |
Deferred revenue recognized | (90) | (89) |
Deferred revenue - extended protection plans, end of period | $ 769 | $ 726 |
Extended Protection Plans (De34
Extended Protection Plans (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2017 | Apr. 29, 2016 | Feb. 03, 2017 | |
Extended Protection Plans | |||
Deferred costs associated with extended protection plan contracts | $ 18 | $ 18 | $ 18 |
Expenses for claims incurred | $ 36 | $ 30 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Millions | 3 Months Ended |
May 05, 2017USD ($) | |
Long-Term Debt | |
Unsecured notes, issued | $ 3,000 |
2027 Fixed Rate Notes [Member] | |
Long-Term Debt | |
Unsecured notes, issued | $ 1,500 |
Unsecured notes, maturity date | May 31, 2027 |
Unsecured notes, interest rate | 3.10% |
Unamortized discount | $ 9 |
2047 Fixed Rate Notes [Member] | |
Long-Term Debt | |
Unsecured notes, issued | $ 1,500 |
Unsecured notes, maturity date | May 31, 2047 |
Unsecured notes, interest rate | 4.05% |
Unamortized discount | $ 23 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Long-Term Debt | ||
Debt instrument, repurchased face amount | $ 1,600 | |
Loss on extinguishment of debt | $ 464 | $ 0 |
2017 Debt Issuance [Member] | ||
Long-Term Debt | ||
Debt instrument, redemption price, percentage | 101.00% |
Equity (Details)
Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
May 05, 2017 | Apr. 29, 2016 | ||
Equity | |||
Reduction in retained earnings | $ 1,198 | $ 1,152 | |
Share Repurchases | |||
Share repurchases, value | [1] | $ 1,264 | $ 1,252 |
Share repurchases, shares | 15.4 | 16.6 | |
Share Repurchase Program [Member] | |||
Share Repurchases | |||
Share repurchases, value | [1] | $ 1,250 | $ 1,200 |
Share repurchases, shares | 15.2 | 15.9 | |
Shares Withheld from Employees [Member] | |||
Share Repurchases | |||
Share repurchases, value | [1] | $ 14 | $ 52 |
Share repurchases, shares | 0.2 | 0.7 | |
[1] | Reductions of $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 5, 2017 and April 29, 2016. |
Equity (Details Textual)
Equity (Details Textual) - USD ($) shares in Millions | Mar. 31, 2017 | May 05, 2017 | Apr. 29, 2016 | Jan. 27, 2017 | |
Share Repurchases | |||||
Share repurchases, value | [1] | $ 1,264,000,000 | $ 1,252,000,000 | ||
Share repurchases, shares | 15.4 | 16.6 | |||
Cash used to repurchase shares | $ 1,237,000,000 | $ 1,253,000,000 | |||
Share Repurchase Program [Member] | |||||
Share Repurchases | |||||
Share repurchases, value | [1] | $ 1,250,000,000 | $ 1,200,000,000 | ||
Share repurchases, shares | 15.2 | 15.9 | |||
Remaining share repurchases authorization, value | $ 3,800,000,000 | ||||
January 27, 2017 Share Repurchase Authorization [Member] | |||||
Share Repurchases | |||||
Share repurchases authorized, value | $ 5,000,000,000 | ||||
March 2017 Accelerated Share Repurchase Agreement Purchases [Member] | |||||
Share Repurchases | |||||
Share repurchases, value | $ 500,000,000 | ||||
Share repurchases, shares | 5.3 | 0.8 | |||
Cash used to repurchase shares | $ 500,000,000 | ||||
Open market purchases [Member] | |||||
Share Repurchases | |||||
Share repurchases, value | $ 750,000,000 | ||||
Share repurchases, shares | 9.1 | ||||
[1] | Reductions of $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 5, 2017 and April 29, 2016. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Basic earnings per common share: | ||
Net earnings | $ 602 | $ 884 |
Less: Net earnings allocable to participating securities | (2) | (4) |
Net earnings allocable to common shares, basic | $ 600 | $ 880 |
Weighted-average common shares outstanding | 857 | 897 |
Basic earnings per common share | $ 0.70 | $ 0.98 |
Diluted earnings per common share: | ||
Net earnings | $ 602 | $ 884 |
Less: Net earnings allocable to participating securities | (2) | (4) |
Net earnings allocable to common shares, diluted | $ 600 | $ 880 |
Weighted-average common shares outstanding | 857 | 897 |
Dilutive effect of non-participating share-based awards | 1 | 2 |
Weighted-average common shares, as adjusted | 858 | 899 |
Diluted earnings per common share | $ 0.70 | $ 0.98 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Earnings Per Share | ||
Anti-dilutive securities | 0.8 | 0.8 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Income Taxes | ||
Effective income tax rate | 35.50% | 38.20% |
Supplemental Disclosure (Detail
Supplemental Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Net interest expense | ||
Long-term debt | $ 145 | $ 134 |
Capitalized lease obligations | 14 | 11 |
Interest income | (3) | (2) |
Interest capitalized | (1) | (1) |
Interest on tax uncertainties | 0 | 2 |
Other | 6 | 12 |
Interest - net | $ 161 | $ 156 |
Supplemental Disclosure (Deta43
Supplemental Disclosure (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2017 | Apr. 29, 2016 | |
Supplemental disclosures of cash flow information | ||
Cash paid for interest, net of amount capitalized | $ 285 | $ 259 |
Cash paid for income taxes, net | 43 | 52 |
Non-cash investing and financing activities: | ||
Non-cash property acquisitions, including assets acquired under capital lease | 3 | 17 |
Cash dividends declared but not paid | $ 299 | $ 251 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | May 12, 2017USD ($) |
Subsequent Event [Member] | Maintenance Supply Headquarters [Member] | Scenario, Forecast [Member] | |
Subsequent Events | |
Payments to acquire business, gross | $ 512 |