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Lowe`s Cos. (LOW)

Document and Entity Information

Document and Entity Information - shares9 Months Ended
Nov. 03, 2017Dec. 01, 2017
Document and Entity Information [Abstract]
Entity Registrant NameLOWES COMPANIES INC
Entity Central Index Key60,667
Document Type10-Q
Document Period End DateNov. 3,
2017
Amendment Flagfalse
Document Fiscal Year Focus2,017
Document Fiscal Period FocusQ3
Current Fiscal Year End Date--02-02
Entity Well-known Seasoned IssuerYes
Entity Voluntary FilersNo
Entity Current Reporting StatusYes
Entity Filer CategoryLarge Accelerated Filer
Entity Common Stock, Shares Outstanding829,760,597

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in MillionsNov. 03, 2017Feb. 03, 2017Oct. 28, 2016
Current assets:
Cash and cash equivalents $ 743 $ 558 $ 960
Short-term investments85 100 123
Merchandise inventory - net12,393 10,458 10,990
Other current assets788 884 655
Total current assets14,009 12,000 12,728
Property, less accumulated depreciation19,818 19,949 20,037
Long-term investments370 366 436
Deferred income taxes - net347 222 331
Goodwill1,327 1,082 1,034
Other assets912 789 804
Total assets36,783 34,408 35,370
Current liabilities:
Short-term borrowings171 510 0
Current maturities of long-term debt297 795 800
Accounts payable8,903 6,651 7,836
Accrued compensation and employee benefits808 790 704
Deferred revenue1,404 1,253 1,258
Other current liabilities2,155 1,975 2,035
Total current liabilities13,738 11,974 12,633
Long-term debt, excluding current maturities15,570 14,394 14,395
Deferred revenue - extended protection plans794 763 745
Other liabilities939 843 889
Total liabilities31,041 27,974 28,662
Equity:
Preferred stock - $5 par value, none issued0 0 0
Common stock - $0.50 par value; Shares issued and outstanding 831 at November 3, 2017, 873 at October 28, 2016, and 866 at February 3, 2017415 433 437
Capital in excess of par value0 0 0
Retained earnings5,289 6,241 6,376
Accumulated other comprehensive income/(loss)38 (240)(214)
Total Lowe's Companies, Inc. shareholders' equity5,742 6,434 6,599
Noncontrolling interest0 0 109
Total equity5,742 6,434 6,708
Total liabilities and equity $ 36,783 $ 34,408 $ 35,370

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / sharesNov. 03, 2017Feb. 03, 2017Oct. 28, 2016
Equity:
Preferred stock, par value $ 5 $ 5 $ 5
Preferred stock, shares issued0 0 0
Common stock, par value $ 0.50 $ 0.50 $ 0.50
Common stock, shares issued831,000,000 866,000,000 873,000,000
Common stock, shares outstanding831,000,000 866,000,000 873,000,000

Consolidated Statements of Curr

Consolidated Statements of Current and Retained Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Current Earnings
Net sales $ 16,770 $ 15,739 $ 53,125 $ 49,233
Cost of sales11,057 10,332 34,942 32,201
Gross margin5,713 5,407 18,183 17,032
Expenses:
Selling, general and administrative3,808 4,084 11,615 11,340
Depreciation and amortization358 384 1,080 1,115
Operating income1,547 939 5,488 4,577
Interest - net160 163 479 486
Loss on extinguishment of debt0 0 464 0
Pre-tax earnings1,387 776 4,545 4,091
Income tax provision515 397 1,652 1,661
Net earnings $ 872 $ 379 $ 2,893 $ 2,430
Weighted-average common shares outstanding - basic831 873 843 884
Basic earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.74
Weighted-average common shares outstanding - diluted832 874 844 886
Diluted earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.73
Cash dividends per share $ 0.41 $ 0.35 $ 1.17 $ 0.98
Retained Earnings
Balance at beginning of period $ 5,253 $ 6,839 $ 6,241 $ 7,593
Net earnings attributable to Lowe’s Companies, Inc.872 378 2,893 2,428
Cash dividends declared(341)(306)(984)(865)
Share repurchases(495)(535)(2,861)(2,780)
Balance at end of period $ 5,289 $ 6,376 $ 5,289 $ 6,376

Consolidated Statements of Cur5

Consolidated Statements of Current and Retained Earnings (Percents) (Unaudited)3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Current Earnings
Net sales100.00%100.00%100.00%100.00%
Cost of sales65.93%65.65%65.77%65.41%
Gross margin34.07%34.35%34.23%34.59%
Expenses:
Selling, general and administrative22.71%25.94%21.87%23.02%
Depreciation and amortization2.13%2.44%2.03%2.27%
Operating income9.23%5.97%10.33%9.30%
Interest - net0.96%1.04%0.91%0.99%
Loss on extinguishment of debt0.00%0.00%0.87%0.00%
Pre-tax earnings8.27%4.93%8.55%8.31%
Income tax provision3.07%2.52%3.10%3.37%
Net earnings5.20%2.41%5.45%4.94%

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Comprehensive Income
Net earnings $ 872 $ 379 $ 2,893 $ 2,430
Foreign currency translation adjustments - net of tax173 152 278 179
Other comprehensive income173 152 278 179
Comprehensive income $ 1,045 $ 531 $ 3,171 $ 2,609

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Percents) (Unaudited)3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Comprehensive Income
Net earnings5.20%2.41%5.45%4.94%
Foreign currency translation adjustments - net of tax1.03%0.97%0.52%0.36%
Other comprehensive income1.03%0.97%0.52%0.36%
Comprehensive income6.23%3.38%5.97%5.30%

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions9 Months Ended
Nov. 03, 2017Oct. 28, 2016
Cash flows from operating activities:
Net earnings $ 2,893 $ 2,430
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization1,148 1,190
Deferred income taxes(118)(72)
Loss on property and other assets - net21 130
Loss on extinguishment of debt464 0
(Gain) loss on cost method and equity method investments(86)300
Share-based payment expense78 71
Changes in operating assets and liabilities:
Merchandise inventory - net(1,783)(718)
Other operating assets186 32
Accounts payable2,251 1,859
Other operating liabilities318 47
Net cash provided by operating activities5,372 5,269
Cash flows from investing activities:
Purchases of investments(680)(1,018)
Proceeds from sale/maturity of investments870 987
Capital expenditures(787)(820)
Proceeds from sale of property and other long-term assets21 28
Purchases of derivative instruments0 (103)
Proceeds from settlement of derivative instruments0 179
Acquisition of business - net(509)(2,284)
Other - net13 (21)
Net cash used in investing activities(1,072)(3,052)
Cash flows from financing activities:
Net change in short-term borrowings(340)(44)
Net proceeds from issuance of long-term debt2,968 3,267
Repayment of long-term debt(2,836)(1,146)
Proceeds from issuance of common stock under share-based payment plans87 88
Cash dividend payments(947)(815)
Repurchase of common stock(3,054)(3,054)
Other - net(8)48
Net cash used in financing activities(4,130)(1,656)
Effect of exchange rate changes on cash15 (6)
Net increase in cash and cash equivalents185 555
Cash and cash equivalents, beginning of period558 405
Cash and cash equivalents, end of period $ 743 $ 960

Summary of Significant Accounti

Summary of Significant Accounting Policies9 Months Ended
Nov. 03, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting PoliciesNote 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 November 3, 2017 , and October 28, 2016 , and the results of operations, comprehensive income for the three and nine months ended November 3, 2017 , and October 28, 2016 , and cash flows for the nine months ended November 3, 2017 and October 28, 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. Accounting Pronouncements Recently Adopted 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 . All excess tax benefits or deficiencies related to share-based payments are recognized in the provision for income taxes, which has increased the volatility within our provision for income taxes, as these amounts were previously reported within equity. As a result of the adoption, we have recognized $10 million and $34 million of excess tax benefits in our provision for income taxes for the three and nine months ended November 3, 2017 , respectively. The recognition of these benefits contributed $0.01 and $0.04 to diluted earnings per share for the three and nine months ended November 3, 2017 , respectively. 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 will 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. Accounting Pronouncements Not Yet Adopted 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 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 addition, the ASU has expanded disclosure requirements regarding revenue. 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 this standard and its subsequent related amendments and interpretations. However, based on our assessment, which will be finalized in the fourth quarter of 2017, the Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. The Company has determined the adoption of the guidance will impact the timing of recognition of its 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. In addition, the Company expects a change in the presentation of the sales return reserve on the consolidated balance sheet, as it is currently reported on a net basis, as well as a change in the timing of how installation services are recognized. The Company is also evaluating principal versus agent conclusions as it relates to certain arrangements with third parties that could impact the presentation of revenue on a gross or net basis. The Company does not expect any significant modifications to existing systems or material changes in the Company’s internal controls over financial reporting. The adoption of the ASU will result in increased footnote disclosure requirements. The Company plans to adopt this ASU in the first quarter of fiscal 2018, and based on its ongoing assessment of potential impacts to its consolidated financial statements, the Company expects to use a modified retrospective approach to adoption.

Acquisitions

Acquisitions9 Months Ended
Nov. 03, 2017
Acquisitions
AcquisitionsNote 2 : Acquisitions - On June 23, 2017, the Company completed its acquisition of Maintenance Supply Headquarters, a leading distributor of maintenance, repair and operations (MRO) products serving the multifamily housing industry. The aggregate purchase price of this acquisition was $513 million and is included in the investing section of the consolidated statements of cash flows, net of the cash acquired. The acquisition is expected to enable the Company to deepen and broaden its relationship with Pro customers and better serve their needs. Acquisition-related costs were expensed as incurred and were not significant. The following table summarizes the preliminary purchase price allocation: (In millions) June 23, 2017 Allocation: Cash acquired $ 4 Merchandise inventory - net 68 Other current assets 36 Property 12 Goodwill 160 Other assets 260 Accounts payable (18 ) Other current liabilities (9 ) Net assets acquired $ 513 Intangible assets acquired totaled $259 million , and include a trademark of $34 million with a useful life of 15 years and a customer list of $225 million with a useful life of 20 years, each of which are included in other assets in the accompanying consolidated balance sheets. The goodwill of $160 million is primarily attributable to the synergies expected to arise after the acquisition and is deductible for tax purposes. Pro forma and historical financial information has not been provided as the acquisition was not material to the consolidated financial statements.

Investment in Australian Joint

Investment in Australian Joint Venture9 Months Ended
Nov. 03, 2017
Investment in Australian Joint Venture
Investment in Australian Joint VentureNote 3 : Investment in Australian Joint Venture - During the second quarter of fiscal 2017, the Company completed the sale of our interest in the Australian joint venture with Woolworths Limited and received proceeds of $199 million , which is included in cash flows from investing activities in the accompanying consolidated statements of cash flows. The proceeds from the sale exceeded the carrying value of the investment and resulted in a gain of $96 million . The carrying value prior to the sale reflected the non-cash impairment charges taken in fiscal years 2015 and 2016. The gain is included in selling, general and administrative expense in the accompanying consolidated statements of current and retained earnings.

Fair Value Measurements

Fair Value Measurements9 Months Ended
Nov. 03, 2017
Fair Value Measurements
Fair Value MeasurementsNote 4 : 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 November 3, 2017 , October 28, 2016 , and February 3, 2017 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level November 3, 2017 October 28, 2016 February 3, 2017 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 70 $ 28 $ 81 Certificates of deposit Level 1 15 55 15 Municipal obligations Level 2 — 37 4 Municipal floating rate obligations Level 2 — 3 — Total short-term investments $ 85 $ 123 $ 100 Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 368 $ 430 $ 359 Certificates of deposit Level 1 2 2 2 Municipal obligations Level 2 — 4 5 Total long-term investments $ 370 $ 436 $ 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, 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 and nine months ended November 3, 2017 , the Company had no significant measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. During the three and nine months ended October 28, 2016 , the Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were certain long-lived assets, goodwill, and cost method investments, which were classified as Level 3 fair value measurements. These non-cash impairment charges were included in selling, general and administrative expense in the accompanying consolidated statements of current and retained earnings. The following table presents the Company’s non-financial assets measured at estimated fair value on a nonrecurring basis and the resulting impairment losses included in earnings for the three and nine months ended October 28, 2016. Because these assets are 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 October 28, 2016. Fair Value Measurements Impairment Losses (In millions) October 28, 2016 Three Months Ended October 28, 2016 Nine Months Ended October 28, 2016 Assets-held-for-use: Operating locations $ 3 $ (31 ) $ (34 ) Goodwill — (46 ) (46 ) Other assets: Cost method investments 103 (290 ) (290 ) Total $ 106 $ (367 ) $ (370 ) 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, short-term borrowings, 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: November 3, 2017 October 28, 2016 February 3, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 14,958 $ 15,974 $ 14,318 $ 15,948 $ 14,321 $ 15,305 Mortgage notes (Level 2) 7 7 10 10 7 7 Long-term debt (excluding capitalized lease obligations) $ 14,965 $ 15,981 $ 14,328 $ 15,958 $ 14,328 $ 15,312

Restricted Investment Balances

Restricted Investment Balances9 Months Ended
Nov. 03, 2017
Restricted Investment Balances
Restricted Investment BalancesNote 5 : 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 November 3, 2017 , $53 million at October 28, 2016 , and $81 million at February 3, 2017 . Restricted balances included in long-term investments were $332 million at November 3, 2017 , $348 million at October 28, 2016 , and $354 million at February 3, 2017 .

Property

Property9 Months Ended
Nov. 03, 2017
Property
PropertyNote 6 : Property - Property is shown net of accumulated depreciation of $17.1 billion at November 3, 2017 , $17.1 billion at October 28, 2016 , and $17.0 billion at February 3, 2017 .

Extended Protection Plans

Extended Protection Plans9 Months Ended
Nov. 03, 2017
Extended Protection Plans
Extended Protection PlansNote 7 : 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 Nine Months Ended (In millions) November 3, 2017 October 28, 2016 November 3, 2017 October 28, 2016 Deferred revenue - extended protection plans, beginning of period $ 790 $ 744 $ 763 $ 729 Additions to deferred revenue 96 88 304 280 Deferred revenue recognized (92 ) (87 ) (273 ) (264 ) Deferred revenue - extended protection plans, end of period $ 794 $ 745 $ 794 $ 745 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 $19 million at November 3, 2017 , $17 million at October 28, 2016 , and $18 million at February 3, 2017 . The Company’s extended protection plan deferred costs are included in other assets (noncurrent) on the accompanying 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 $43 million and $119 million for the three and nine months ended November 3, 2017 , respectively, and $39 million and $107 million for the three and nine months ended October 28, 2016 , respectively.

Long-Term Debt

Long-Term Debt9 Months Ended
Nov. 03, 2017
Long-Term Debt
Long-Term DebtNote 8 : Long-Term Debt - During the first quarter of fiscal 2017, 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, if any, 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 its outstanding notes and recognized a loss on extinguishment of debt of $464 million .

Equity

Equity9 Months Ended
Nov. 03, 2017
Equity
EquityNote 9 : 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 November 3, 2017 , the Company had $2.1 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 first quarter. In May 2017, the Company entered into an 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 5.2 million shares. The Company finalized the transaction and received an additional 1.2 million shares prior to the end of the second quarter. In August 2017, the Company entered into an ASR agreement with a third-party financial institution to repurchase $250 million of the Company’s common stock. At inception, pursuant to the agreement, the Company paid $250 million to the financial institution using cash on hand, and took delivery of 2.9 million shares. The Company finalized the transaction and received an additional 0.3 million shares prior to the end of the third quarter. Under the terms of each of the ASR agreements, 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 each of the ASR agreements was determined with reference to the volume-weighted average price of the Company’s common stock over the term of the respective ASR agreement. The initial repurchase of shares under each of the agreements 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. Each of the ASR agreements 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 and nine months ended November 3, 2017 , the Company also repurchased shares of its common stock through the open market totaling 3.2 million and 21.8 million shares, respectively, for a cost of $250 million and $1.8 billion , respectively. 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 and nine months ended November 3, 2017 , and October 28, 2016 were as follows: Three Months Ended November 3, 2017 October 28, 2016 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 6.4 $ 500 8.3 $ 550 Shares withheld from employees 0.4 27 0.3 24 Total share repurchases 6.8 $ 527 8.6 $ 574 1 Reductions of $495 million and $535 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended November 3, 2017 and October 28, 2016 , respectively. Nine Months Ended November 3, 2017 October 28, 2016 (In millions) Shares Cost 2 Shares Cost 2 Share repurchase program 37.5 $ 3,000 39.0 $ 2,949 Shares withheld from employees 0.5 41 1.1 77 Total share repurchases 38.0 $ 3,041 40.1 $ 3,026 2 Reductions of $2.9 billion and $2.8 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the nine months ended November 3, 2017 and October 28, 2016 , respectively.

Earnings Per Share

Earnings Per Share9 Months Ended
Nov. 03, 2017
Earnings Per Share
Earnings Per ShareNote 10 : 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 and nine months ended November 3, 2017 and October 28, 2016 : Three Months Ended Nine Months Ended (In millions, except per share data) November 3, 2017 October 28, 2016 November 3, 2017 October 28, 2016 Basic earnings per common share: Net earnings attributable to Lowe’s Companies, Inc. $ 872 $ 378 $ 2,893 $ 2,428 Less: Net earnings allocable to participating securities (2 ) (2 ) (10 ) (9 ) Net earnings allocable to common shares, basic $ 870 $ 376 $ 2,883 $ 2,419 Weighted-average common shares outstanding 831 873 843 884 Basic earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.74 Diluted earnings per common share: Net earnings attributable to Lowe’s Companies, Inc. $ 872 $ 378 $ 2,893 $ 2,428 Less: Net earnings allocable to participating securities (2 ) (2 ) (10 ) (9 ) Net earnings allocable to common shares, diluted $ 870 $ 376 $ 2,883 $ 2,419 Weighted-average common shares outstanding 831 873 843 884 Dilutive effect of non-participating share-based awards 1 1 1 2 Weighted-average common shares, as adjusted 832 874 844 886 Diluted earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.73 Stock options to purchase 1.0 million shares of common stock were anti-dilutive for the three and nine months ended November 3, 2017 . Stock options to purchase 1.1 million and 0.9 million shares of common stock were anti-dilutive for the three and nine months ended October 28, 2016 , respectively.

Income Taxes

Income Taxes9 Months Ended
Nov. 03, 2017
Income Taxes
Income TaxesNote 11 : Income Taxes - The Company’s effective income tax rates were 37.1% and 51.2% for the three months ended November 3, 2017 and October 28, 2016, respectively. The lower effective income tax rate for the three months ended November 3, 2017 was primarily attributable to the non-cash impairment charge associated with our investment in the Australian joint venture, which was recognized during the third quarter of fiscal 2016. The loss was considered capital in nature and, since no capital gains were identified through which the Company could utilize this loss, a full deferred tax valuation allowance was established. As a result, the loss did not result in a tax benefit. Our effective income tax rates were 36.3% and 40.6% for the nine months ended November 3, 2017 and October 28, 2016, respectively. The lower effective income tax rate for the nine months ended November 3, 2017 was primarily attributable to the non-cash impairment charge associated with our investment in the Australian joint venture, and from the sale of this investment during the second quarter of fiscal 2017, which did not result in tax expense due to the reduction of the previously established deferred tax valuation allowance. The lower effective income tax rate for the nine months ended November 3, 2017 was also driven by 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 Disclosure9 Months Ended
Nov. 03, 2017
Supplemental Disclosure
Supplemental DisclosureNote 12 : Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended Nine Months Ended (In millions) November 3, 2017 October 28, 2016 November 3, 2017 October 28, 2016 Long-term debt $ 146 $ 151 $ 438 $ 437 Capitalized lease obligations 14 13 41 40 Interest income (2 ) (4 ) (10 ) (10 ) Interest capitalized (2 ) (1 ) (4 ) (3 ) Interest on tax uncertainties — — (1 ) 2 Other 4 4 15 20 Interest - net $ 160 $ 163 $ 479 $ 486 Supplemental disclosures of cash flow information: Nine Months Ended (In millions) November 3, 2017 October 28, 2016 Cash paid for interest, net of amount capitalized $ 610 $ 588 Cash paid for income taxes - net $ 1,322 $ 1,657 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 91 $ 72 Cash dividends declared but not paid $ 341 $ 306

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)9 Months Ended
Nov. 03, 2017
Summary of Significant Accounting Policies
Basis of PresentationBasis 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 November 3, 2017 , and October 28, 2016 , and the results of operations, comprehensive income for the three and nine months ended November 3, 2017 , and October 28, 2016 , and cash flows for the nine months ended November 3, 2017 and October 28, 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.
ReclassificationsReclassifications Certain prior period amounts have been reclassified to conform to current presentation.
Recent Accounting PronouncementsAccounting Pronouncements Recently Adopted 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 . All excess tax benefits or deficiencies related to share-based payments are recognized in the provision for income taxes, which has increased the volatility within our provision for income taxes, as these amounts were previously reported within equity. As a result of the adoption, we have recognized $10 million and $34 million of excess tax benefits in our provision for income taxes for the three and nine months ended November 3, 2017 , respectively. The recognition of these benefits contributed $0.01 and $0.04 to diluted earnings per share for the three and nine months ended November 3, 2017 , respectively. 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 will 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. Accounting Pronouncements Not Yet Adopted 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 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 addition, the ASU has expanded disclosure requirements regarding revenue. 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 this standard and its subsequent related amendments and interpretations. However, based on our assessment, which will be finalized in the fourth quarter of 2017, the Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. The Company has determined the adoption of the guidance will impact the timing of recognition of its 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. In addition, the Company expects a change in the presentation of the sales return reserve on the consolidated balance sheet, as it is currently reported on a net basis, as well as a change in the timing of how installation services are recognized. The Company is also evaluating principal versus agent conclusions as it relates to certain arrangements with third parties that could impact the presentation of revenue on a gross or net basis. The Company does not expect any significant modifications to existing systems or material changes in the Company’s internal controls over financial reporting. The adoption of the ASU will result in increased footnote disclosure requirements. The Company plans to adopt this ASU in the first quarter of fiscal 2018, and based on its ongoing assessment of potential impacts to its consolidated financial statements, the Company expects to use a modified retrospective approach to adoption.

Acquisitions (Tables)

Acquisitions (Tables)9 Months Ended
Nov. 03, 2017
Acquisitions
AcquisitionsThe following table summarizes the preliminary purchase price allocation: (In millions) June 23, 2017 Allocation: Cash acquired $ 4 Merchandise inventory - net 68 Other current assets 36 Property 12 Goodwill 160 Other assets 260 Accounts payable (18 ) Other current liabilities (9 ) Net assets acquired $ 513

Fair Value Measurements (Tables

Fair Value Measurements (Tables)9 Months Ended
Nov. 03, 2017
Fair Value Measurements
Fair value measurements - recurring basisThe following table presents the Company’s financial assets measured at fair value on a recurring basis as of November 3, 2017 , October 28, 2016 , and February 3, 2017 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level November 3, 2017 October 28, 2016 February 3, 2017 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 70 $ 28 $ 81 Certificates of deposit Level 1 15 55 15 Municipal obligations Level 2 — 37 4 Municipal floating rate obligations Level 2 — 3 — Total short-term investments $ 85 $ 123 $ 100 Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 368 $ 430 $ 359 Certificates of deposit Level 1 2 2 2 Municipal obligations Level 2 — 4 5 Total long-term investments $ 370 $ 436 $ 366 There were no transfers between Levels 1, 2 or 3 during any of the periods presented.
Fair value measurements - nonrecurring basisThe following table presents the Company’s non-financial assets measured at estimated fair value on a nonrecurring basis and the resulting impairment losses included in earnings for the three and nine months ended October 28, 2016. Because these assets are 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 October 28, 2016. Fair Value Measurements Impairment Losses (In millions) October 28, 2016 Three Months Ended October 28, 2016 Nine Months Ended October 28, 2016 Assets-held-for-use: Operating locations $ 3 $ (31 ) $ (34 ) Goodwill — (46 ) (46 ) Other assets: Cost method investments 103 (290 ) (290 ) Total $ 106 $ (367 ) $ (370 )
Fair value of financial instrumentsCarrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease obligations, are as follows: November 3, 2017 October 28, 2016 February 3, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 14,958 $ 15,974 $ 14,318 $ 15,948 $ 14,321 $ 15,305 Mortgage notes (Level 2) 7 7 10 10 7 7 Long-term debt (excluding capitalized lease obligations) $ 14,965 $ 15,981 $ 14,328 $ 15,958 $ 14,328 $ 15,312

Extended Protection Plans (Tabl

Extended Protection Plans (Tables)9 Months Ended
Nov. 03, 2017
Extended Protection Plans
Changes in deferred revenue for extended protection plan contractsChanges in deferred revenue for extended protection plan contracts are summarized as follows: Three Months Ended Nine Months Ended (In millions) November 3, 2017 October 28, 2016 November 3, 2017 October 28, 2016 Deferred revenue - extended protection plans, beginning of period $ 790 $ 744 $ 763 $ 729 Additions to deferred revenue 96 88 304 280 Deferred revenue recognized (92 ) (87 ) (273 ) (264 ) Deferred revenue - extended protection plans, end of period $ 794 $ 745 $ 794 $ 745

Long-Term Debt (Tables)

Long-Term Debt (Tables)9 Months Ended
Nov. 03, 2017
Long-Term Debt
Schedule of unsecured notes issued in fiscal 2017During the first quarter of fiscal 2017, 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)9 Months Ended
Nov. 03, 2017
Equity
Schedule of share repurchasesShares repurchased for the three and nine months ended November 3, 2017 , and October 28, 2016 were as follows: Three Months Ended November 3, 2017 October 28, 2016 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 6.4 $ 500 8.3 $ 550 Shares withheld from employees 0.4 27 0.3 24 Total share repurchases 6.8 $ 527 8.6 $ 574 1 Reductions of $495 million and $535 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended November 3, 2017 and October 28, 2016 , respectively. Nine Months Ended November 3, 2017 October 28, 2016 (In millions) Shares Cost 2 Shares Cost 2 Share repurchase program 37.5 $ 3,000 39.0 $ 2,949 Shares withheld from employees 0.5 41 1.1 77 Total share repurchases 38.0 $ 3,041 40.1 $ 3,026 2 Reductions of $2.9 billion and $2.8 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the nine months ended November 3, 2017 and October 28, 2016 , respectively.

Earnings Per Share (Tables)

Earnings Per Share (Tables)9 Months Ended
Nov. 03, 2017
Earnings Per Share
Schedule of earnings per share, basic and dilutedThe following table reconciles earnings per common share for the three and nine months ended November 3, 2017 and October 28, 2016 : Three Months Ended Nine Months Ended (In millions, except per share data) November 3, 2017 October 28, 2016 November 3, 2017 October 28, 2016 Basic earnings per common share: Net earnings attributable to Lowe’s Companies, Inc. $ 872 $ 378 $ 2,893 $ 2,428 Less: Net earnings allocable to participating securities (2 ) (2 ) (10 ) (9 ) Net earnings allocable to common shares, basic $ 870 $ 376 $ 2,883 $ 2,419 Weighted-average common shares outstanding 831 873 843 884 Basic earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.74 Diluted earnings per common share: Net earnings attributable to Lowe’s Companies, Inc. $ 872 $ 378 $ 2,893 $ 2,428 Less: Net earnings allocable to participating securities (2 ) (2 ) (10 ) (9 ) Net earnings allocable to common shares, diluted $ 870 $ 376 $ 2,883 $ 2,419 Weighted-average common shares outstanding 831 873 843 884 Dilutive effect of non-participating share-based awards 1 1 1 2 Weighted-average common shares, as adjusted 832 874 844 886 Diluted earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.73

Supplemental Disclosure (Tables

Supplemental Disclosure (Tables)9 Months Ended
Nov. 03, 2017
Supplemental Disclosure
Net interest expenseNet interest expense is comprised of the following: Three Months Ended Nine Months Ended (In millions) November 3, 2017 October 28, 2016 November 3, 2017 October 28, 2016 Long-term debt $ 146 $ 151 $ 438 $ 437 Capitalized lease obligations 14 13 41 40 Interest income (2 ) (4 ) (10 ) (10 ) Interest capitalized (2 ) (1 ) (4 ) (3 ) Interest on tax uncertainties — — (1 ) 2 Other 4 4 15 20 Interest - net $ 160 $ 163 $ 479 $ 486
Supplemental disclosures of cash flow informationSupplemental disclosures of cash flow information: Nine Months Ended (In millions) November 3, 2017 October 28, 2016 Cash paid for interest, net of amount capitalized $ 610 $ 588 Cash paid for income taxes - net $ 1,322 $ 1,657 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 91 $ 72 Cash dividends declared but not paid $ 341 $ 306

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax provision $ 515 $ 397 $ 1,652 $ 1,661
Diluted earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.73
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax provision $ (10) $ (34)
Diluted earnings per common share $ 0.01 $ 0.04

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in MillionsNov. 03, 2017Jun. 23, 2017Feb. 03, 2017Oct. 28, 2016
Allocation:
Goodwill $ 1,327 $ 1,082 $ 1,034
Maintenance Supply Headquarters
Allocation:
Cash acquired $ 4
Merchandise inventory - net68
Other current assets36
Property12
Goodwill160
Other assets260
Accounts payable(18)
Other current liabilities(9)
Net assets acquired $ 513

Acquisitions (Details Textual)

Acquisitions (Details Textual) - Maintenance Supply Headquarters $ in MillionsJun. 23, 2017USD ($)
Business Acquisition [Line Items]
Consideration transferred $ 513
Intangible assets acquired259
Goodwill expected to be tax deductible160
Trademark
Business Acquisition [Line Items]
Intangible assets acquired $ 34
Useful life of intangible assets acquired15 years
Customer List
Business Acquisition [Line Items]
Intangible assets acquired $ 225
Useful life of intangible assets acquired20 years

Investment in Australian Join32

Investment in Australian Joint Venture (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Aug. 04, 2017Nov. 03, 2017Oct. 28, 2016
Investment in Australian Joint Venture
Proceeds from sale/maturity of investments $ 870 $ 987
Hydrox Holdings Pty Ltd.
Investment in Australian Joint Venture
Proceeds from sale/maturity of investments $ 199
Cost method investments, realized gains $ 96

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Estimate of Fair Value - USD ($) $ in MillionsNov. 03, 2017Feb. 03, 2017Oct. 28, 2016
Short-term Investments
Assets, Fair Value Disclosure
Available-for-sale securities, fair value $ 85 $ 100 $ 123
Short-term Investments | Money Market Funds | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value70 81 28
Short-term Investments | Certificates Of Deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value15 15 55
Short-term Investments | Municipal Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value0 4 37
Short-term Investments | Municipal Floating Rate Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value0 0 3
Long-term Investments
Assets, Fair Value Disclosure
Available-for-sale securities, fair value370 366 436
Long-term Investments | Certificates Of Deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value2 2 2
Long-term Investments | Municipal Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value0 5 4
Long-term Investments | Municipal Floating Rate Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value $ 368 $ 359 $ 430

Fair Value Measurements (Deta34

Fair Value Measurements (Details 1) - Fair Value, Measurements, Nonrecurring [Member] $ in Millions3 Months Ended9 Months Ended
Oct. 28, 2016USD ($)Oct. 28, 2016USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges $ (367) $ (370)
Goodwill
Goodwill impairment loss(46)(46)
Other assets
Cost method investment impairment loss(290)(290)
Operating Locations
Assets held-for-use
Long-lived asset impairment losses(31)(34)
Estimate of Fair Value | Fair Value (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, fair value measurement106 106
Goodwill
Goodwill, fair value measurement0 0
Other assets
Cost method investment, fair value measurement103 103
Estimate of Fair Value | Fair Value (Level 3) | Operating Locations
Assets held-for-use
Fair value measurement $ 3 $ 3

Fair Value Measurements (Deta35

Fair Value Measurements (Details 2) - USD ($) $ in MillionsNov. 03, 2017Feb. 03, 2017Oct. 28, 2016
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations) $ 14,965 $ 14,328 $ 14,328
Unsecured Notes
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations)14,958 14,321 14,318
Mortgage Notes
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations)7 7 10
Estimate of Fair Value
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations)15,981 15,312 15,958
Estimate of Fair Value | Unsecured Notes | Fair Value (Level 1)
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations)15,974 15,305 15,948
Estimate of Fair Value | Mortgage Notes | Fair Value (Level 2)
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations) $ 7 $ 7 $ 10

Restricted Investment Balances

Restricted Investment Balances (Details) - USD ($) $ in MillionsNov. 03, 2017Feb. 03, 2017Oct. 28, 2016
Restricted Investment Balances
Restricted balances included in short-term investments $ 70 $ 81 $ 53
Restricted balances included in long-term investments $ 332 $ 354 $ 348

Property (Details)

Property (Details) - USD ($) $ in BillionsNov. 03, 2017Feb. 03, 2017Oct. 28, 2016
Property
Accumulated depreciation $ 17.1 $ 17 $ 17.1

Extended Protection Plans (Deta

Extended Protection Plans (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Changes in deferred revenue for extended protection plan contracts
Deferred revenue - extended protection plans, beginning of period $ 790 $ 744 $ 763 $ 729
Additions to deferred revenue96 88 304 280
Deferred revenue recognized(92)(87)(273)(264)
Deferred revenue - extended protection plans, end of period $ 794 $ 745 $ 794 $ 745

Extended Protection Plans (De39

Extended Protection Plans (Details Textual) - USD ($) $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016Feb. 03, 2017
Extended Protection Plans
Deferred costs associated with extended protection plan contracts $ 19 $ 17 $ 19 $ 17 $ 18
Expenses for claims incurred $ 43 $ 39 $ 119 $ 107

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Millions3 Months Ended
May 05, 2017USD ($)
Long-Term Debt
Unsecured notes, issued $ 3,000
2027 Fixed Rate Notes
Long-Term Debt
Unsecured notes, issued $ 1,500
Unsecured notes, maturity dateMay 31,
2027
Unsecured notes, interest rate3.10%
Unamortized discount $ 9
2047 Fixed Rate Notes
Long-Term Debt
Unsecured notes, issued $ 1,500
Unsecured notes, maturity dateMay 31,
2047
Unsecured notes, interest rate4.05%
Unamortized discount $ 23

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - USD ($) $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017May 05, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Long-Term Debt
Debt instrument, repurchased face amount $ 1,600
Loss on extinguishment of debt $ 0 $ 464 $ 0 $ 464 $ 0
2017 Debt Issuance
Long-Term Debt
Debt instrument, redemption price, percentage101.00%

Equity (Details)

Equity (Details) - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Equity
Reduction in retained earnings $ 495 $ 535 $ 2,861 $ 2,780
Share Repurchases
Share repurchases, value $ 527 [1] $ 574 [1] $ 3,041 [2] $ 3,026 [2]
Share repurchases, shares6.8 8.6 38 40.1
Share Repurchase Program
Share Repurchases
Share repurchases, value $ 500 [1] $ 550 [1] $ 3,000 [2] $ 2,949 [2]
Share repurchases, shares6.4 8.3 37.5 39
Shares Withheld from Employees
Share Repurchases
Share repurchases, value $ 27 [1] $ 24 [1] $ 41 [2] $ 77 [2]
Share repurchases, shares0.4 0.3 0.5 1.1
[1]Reductions of $495 million and $535 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended November 3, 2017 and October 28, 2016, respectively.
[2]Reductions of $2.9 billion and $2.8 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the nine months ended November 3, 2017 and October 28, 2016, respectively.

Equity (Details Textual)

Equity (Details Textual) - USD ($) shares in MillionsAug. 31, 2017May 31, 2017Mar. 31, 2017Nov. 03, 2017Aug. 04, 2017May 05, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016Jan. 27, 2017
Share Repurchases
Share repurchases, value $ 527,000,000 [1] $ 574,000,000 [1] $ 3,041,000,000 [2] $ 3,026,000,000 [2]
Share repurchases, shares6.8 8.6 38 40.1
Cash used to repurchase shares $ 3,054,000,000 $ 3,054,000,000
Share Repurchase Program
Share Repurchases
Share repurchases, value $ 500,000,000 [1] $ 550,000,000 [1] $ 3,000,000,000 [2] $ 2,949,000,000 [2]
Share repurchases, shares6.4 8.3 37.5 39
Remaining share repurchases authorization, value $ 2,100,000,000 $ 2,100,000,000
January 27, 2017 Share Repurchase Authorization
Share Repurchases
Share repurchases authorized, value $ 5,000,000,000
March 2017 Accelerated Share Repurchase Agreement Purchases
Share Repurchases
Share repurchases, value $ 500,000,000
Share repurchases, shares5.3 0.8
Cash used to repurchase shares $ 500,000,000
May 2017 Accelerated Share Repurchase Agreement Purchases
Share Repurchases
Share repurchases, value $ 500,000,000
Share repurchases, shares5.2 1.2
Cash used to repurchase shares $ 500,000,000
August 2017 Accelerated Share Repurchase Agreement Purchases
Share Repurchases
Share repurchases, value $ 250,000,000
Share repurchases, shares2.9 0.3
Cash used to repurchase shares $ 250,000,000
Open market purchases
Share Repurchases
Share repurchases, value $ 250,000,000 $ 1,800,000,000
Share repurchases, shares3.2 21.8
[1]Reductions of $495 million and $535 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended November 3, 2017 and October 28, 2016, respectively.
[2]Reductions of $2.9 billion and $2.8 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the nine months ended November 3, 2017 and October 28, 2016, respectively.

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Basic earnings per common share:
Net earnings attributable to Lowe’s Companies, Inc. $ 872 $ 378 $ 2,893 $ 2,428
Less: Net earnings allocable to participating securities(2)(2)(10)(9)
Net earnings allocable to common shares, basic $ 870 $ 376 $ 2,883 $ 2,419
Weighted-average common shares outstanding831 873 843 884
Basic earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.74
Diluted earnings per common share:
Net earnings attributable to Lowe’s Companies, Inc. $ 872 $ 378 $ 2,893 $ 2,428
Less: Net earnings allocable to participating securities(2)(2)(10)(9)
Net earnings allocable to common shares, diluted $ 870 $ 376 $ 2,883 $ 2,419
Weighted-average common shares outstanding831 873 843 884
Dilutive effect of non-participating share-based awards1 1 1 2
Weighted-average common shares, as adjusted832 874 844 886
Diluted earnings per common share $ 1.05 $ 0.43 $ 3.42 $ 2.73

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual) - shares shares in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Earnings Per Share
Anti-dilutive securities1 1.1 1 0.9

Income Taxes (Details)

Income Taxes (Details)3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Income Taxes
Effective income tax rate37.10%51.20%36.30%40.60%

Supplemental Disclosure (Detail

Supplemental Disclosure (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Nov. 03, 2017Oct. 28, 2016Nov. 03, 2017Oct. 28, 2016
Net interest expense
Long-term debt $ 146 $ 151 $ 438 $ 437
Capitalized lease obligations14 13 41 40
Interest income(2)(4)(10)(10)
Interest capitalized(2)(1)(4)(3)
Interest on tax uncertainties0 0 (1)2
Other4 4 15 20
Interest - net $ 160 $ 163 $ 479 $ 486

Supplemental Disclosure (Deta48

Supplemental Disclosure (Details 1) - USD ($) $ in Millions9 Months Ended
Nov. 03, 2017Oct. 28, 2016
Supplemental disclosures of cash flow information
Cash paid for interest, net of amount capitalized $ 610 $ 588
Cash paid for income taxes, net1,322 1,657
Non-cash investing and financing activities:
Non-cash property acquisitions, including assets acquired under capital lease91 72
Cash dividends declared but not paid $ 341 $ 306