Cover Page
Cover Page - shares | 3 Months Ended | |
May 01, 2020 | May 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 1, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-7898 | |
Entity Registrant Name | LOWES COMPANIES INC | |
Entity Incorporation, State or Country Code | NC | |
Entity Tax Identification Number | 56-0578072 | |
Entity Address, Address Line One | 1000 Lowe’s Blvd. | |
Entity Address, City or Town | Mooresville, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28117 | |
City Area Code | (704) | |
Local Phone Number | 758-1000 | |
Title of each class | Common Stock, par value $0.50 per share | |
Trading Symbol | LOW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 755,002,775 | |
Entity Central Index Key | 0000060667 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --01-29 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | May 01, 2020 | Jan. 31, 2020 | May 03, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 5,955 | $ 716 | $ 2,973 |
Short-term investments | 201 | 160 | 190 |
Merchandise inventory – net | 14,283 | 13,179 | 15,026 |
Other current assets | 1,487 | 1,263 | 1,146 |
Total current assets | 21,926 | 15,318 | 19,335 |
Property, less accumulated depreciation | 18,501 | 18,669 | 18,150 |
Operating lease right-of-use assets | 3,876 | 3,891 | 3,926 |
Long-term investments | 300 | 372 | 235 |
Deferred income taxes – net | 215 | 216 | 495 |
Other assets | 1,014 | 1,005 | 1,078 |
Total assets | 45,832 | 39,471 | 43,219 |
Current liabilities: | |||
Short-term borrowings | 1,000 | 1,941 | 0 |
Current maturities of long-term debt | 604 | 597 | 1,008 |
Current operating lease liabilities | 506 | 501 | 500 |
Accounts payable | 10,841 | 7,659 | 11,485 |
Accrued compensation and employee benefits | 982 | 684 | 769 |
Deferred revenue | 1,212 | 1,219 | 1,376 |
Other current liabilities | 3,180 | 2,581 | 2,643 |
Total current liabilities | 18,325 | 15,182 | 17,781 |
Long-term debt, excluding current maturities | 20,200 | 16,768 | 16,542 |
Noncurrent operating lease liabilities | 3,915 | 3,943 | 4,064 |
Deferred revenue – extended protection plans | 915 | 894 | 837 |
Other liabilities | 761 | 712 | 759 |
Total liabilities | 44,116 | 37,499 | 39,983 |
Shareholders' equity: | |||
Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none | 0 | 0 | 0 |
Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 755 million at May 1,2020, 795 million at May 3, 2019, and 763 million shares at January 31, 2020 | 377 | 381 | 397 |
Capital in excess of par value | 10 | 0 | 0 |
Retained earnings | 1,722 | 1,727 | 3,095 |
Accumulated other comprehensive loss | (393) | (136) | (256) |
Total shareholders' equity | 1,716 | 1,972 | 3,236 |
Total liabilities and shareholders' equity | $ 45,832 | $ 39,471 | $ 43,219 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | May 01, 2020 | Jan. 31, 2020 | May 03, 2019 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 | $ 5 |
Preferred stock, authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, authorized | 5,600,000,000 | 5,600,000,000 | 5,600,000,000 |
Common stock, shares issued | 755,000,000 | 763,000,000 | 795,000,000 |
Common stock, shares outstanding | 755,000,000 | 763,000,000 | 795,000,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Current Earnings | ||
Net sales | $ 19,675 | $ 17,741 |
Cost of sales | 13,162 | 12,160 |
Gross margin | 6,513 | 5,581 |
Expenses: | ||
Selling, general and administrative | 4,196 | 3,862 |
Depreciation and amortization | 326 | 302 |
Operating income | 1,991 | 1,417 |
Interest – net | 205 | 162 |
Pre-tax earnings | 1,786 | 1,255 |
Income tax provision | 449 | 209 |
Net earnings | $ 1,337 | $ 1,046 |
Weighted-average common shares outstanding - basic (in shares) | 755 | 796 |
Basic earnings per common share (in dollars per share) | $ 1.76 | $ 1.31 |
Weighted-average common shares outstanding - diluted (in shares) | 756 | 797 |
Diluted earnings per common share (in dollars per share) | $ 1.76 | $ 1.31 |
Cash dividends per share (in dollars per share) | $ 0.55 | $ 0.48 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Unaudited) (Percents) | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Current Earnings | ||
Net sales | 100.00% | 100.00% |
Cost of sales | 66.90% | 68.54% |
Gross margin | 33.10% | 31.46% |
Expenses: | ||
Selling, general and administrative | 21.32% | 21.77% |
Depreciation and amortization | 1.66% | 1.70% |
Operating income | 10.12% | 7.99% |
Interest – net | 1.04% | 0.92% |
Pre-tax earnings | 9.08% | 7.07% |
Income tax provision | 2.28% | 1.17% |
Net earnings | 6.80% | 5.90% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Comprehensive Income | ||
Net earnings | $ 1,337 | $ 1,046 |
Foreign currency translation adjustments – net of tax | (159) | (33) |
Cash flow hedges – net of tax | (102) | (15) |
Other | 4 | 0 |
Other comprehensive loss | (257) | (48) |
Comprehensive income | $ 1,080 | $ 998 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Percents) | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Comprehensive Income | ||
Net earnings | 6.80% | 5.90% |
Foreign currency translation adjustments – net of tax | (0.82%) | (0.18%) |
Cash flow hedges – net of tax | (0.52%) | (0.09%) |
Other | 0.03% | 0.00% |
Other comprehensive loss | (1.31%) | (0.27%) |
Comprehensive income | 5.49% | 5.63% |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance (in shares) at Feb. 01, 2019 | 801 | ||||
Balance at Feb. 01, 2019 | $ 3,644 | $ 401 | $ 0 | $ 3,452 | $ (209) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 1,046 | 1,046 | |||
Other comprehensive loss | (47) | (47) | |||
Cash dividends declared | (382) | (382) | |||
Share-based payment expense | 39 | 39 | |||
Repurchase of common stock (in shares) | (8) | ||||
Repurchase of common stock | (833) | $ (5) | (70) | (758) | |
Issuance of common stock under share-based payment plans (in shares) | 2 | ||||
Issuance of common stock under share-based payment plans | $ 32 | $ 1 | 31 | ||
Balance (in shares) at May. 03, 2019 | 795 | 795 | |||
Balance at May. 03, 2019 | $ 3,236 | $ 397 | 0 | 3,095 | (256) |
Balance (in shares) at Jan. 31, 2020 | 763 | 763 | |||
Balance at Jan. 31, 2020 | $ 1,972 | $ 381 | 0 | 1,727 | (136) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 1,337 | 1,337 | |||
Other comprehensive loss | (257) | (257) | |||
Cash dividends declared | (415) | (415) | |||
Share-based payment expense | 23 | 23 | |||
Repurchase of common stock (in shares) | (10) | ||||
Repurchase of common stock | (947) | $ (5) | (15) | (927) | |
Issuance of common stock under share-based payment plans (in shares) | 2 | ||||
Issuance of common stock under share-based payment plans | $ 3 | $ 1 | 2 | ||
Balance (in shares) at May. 01, 2020 | 755 | 755 | |||
Balance at May. 01, 2020 | $ 1,716 | $ 377 | $ 10 | $ 1,722 | $ (393) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share (in dollars per share) | $ 0.55 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 1,337 | $ 1,046 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 373 | 337 |
Noncash lease expense | 116 | 114 |
Deferred income taxes | 46 | (106) |
Loss (gain) on property and other assets – net | 17 | (2) |
Share-based payment expense | 27 | 42 |
Changes in operating assets and liabilities: | ||
Merchandise inventory – net | (1,183) | (2,478) |
Other operating assets | (206) | (275) |
Accounts payable | 3,207 | 3,199 |
Other operating liabilities | 716 | 260 |
Net cash provided by operating activities | 4,450 | 2,137 |
Cash flows from investing activities: | ||
Purchases of investments | (70) | (3) |
Proceeds from sale/maturity of investments | 107 | 54 |
Capital expenditures | (328) | (205) |
Proceeds from sale of property and other long-term assets | 25 | 24 |
Other – net | (22) | (1) |
Net cash used in investing activities | (288) | (131) |
Cash flows from financing activities: | ||
Net change in commercial paper | (941) | (722) |
Net proceeds from issuance of debt | 3,961 | 2,972 |
Repayment of debt | (543) | (616) |
Proceeds from issuance of common stock under share-based payment plans | 4 | 32 |
Cash dividend payments | (420) | (385) |
Repurchase of common stock | (966) | (826) |
Other – net | (3) | (9) |
Net cash provided by financing activities | 1,092 | 446 |
Effect of exchange rate changes on cash | (15) | (2) |
Net increase in cash and cash equivalents, including cash classified within current assets held for sale | 5,239 | 2,450 |
Less: Net decrease in cash classified within current assets held for sale | 0 | 12 |
Net increase in cash and cash equivalents | 5,239 | 2,462 |
Cash and cash equivalents, beginning of period | 716 | 511 |
Cash and cash equivalents, end of period | $ 5,955 | $ 2,973 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 01, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 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 1, 2020 , and May 3, 2019 , the results of operations, comprehensive income, shareholders’ equity, and cash flows for the three months ended May 1, 2020 , and May 3, 2019 . The January 31, 2020 consolidated balance sheet was derived from the audited financial statements. These interim consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe’s Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended January 31, 2020 (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 period presentation, including the addition of cash flow hedges – net of tax on the consolidated statements of comprehensive income and the inclusion of goodwill within other assets on the consolidated balance sheets. Accounting Pronouncements Not Yet Adopted |
Revenue
Revenue | 3 Months Ended |
May 01, 2020 | |
Revenue Recognition | |
Revenue | Revenue - Net sales consists primarily of revenue, net of sales tax, associated with contracts with customers for the sale of goods and services in amounts that reflect consideration the Company is entitled to in exchange for those goods and services. The following table presents the Company’s sources of revenue: (In millions) Three Months Ended May 1, 2020 May 3, 2019 Products $ 19,020 $ 16,900 Services 399 554 Other 256 287 Net sales $ 19,675 $ 17,741 Revenue from products primarily relates to in-store and online merchandise purchases, which are recognized at the point in time when the customer obtains control of the merchandise. This occurs at the time of in-store purchase, in-store or curbside pick-up, or delivery of the product to the customer. A provision for anticipated merchandise returns is provided through a reduction of sales and cost of sales in the period that the related sales are recorded. The merchandise return reserve is presented on a gross basis, with a separate asset and liability included in the consolidated balance sheets. Anticipated sales returns reflected in other current liabilities were $352 million at May 1, 2020 , and $287 million at May 3, 2019 . The associated right of return assets reflected in other current assets were $226 million at May 1, 2020 , and $190 million at May 3, 2019 . Revenues from services primarily relate to professional installation services the Company provides through subcontractors related to merchandise purchased by a customer. In certain instances, installation services include materials provided by the subcontractor, and both product and installation are included in service revenue. The Company recognizes revenue associated with services as they are rendered, and the majority of services are completed within one week from initiation. Deferred revenue - retail Deferred revenue is presented for merchandise in which control has not yet transferred to the customer and for services that have not yet been provided, but for which tender has been accepted. Deferred revenue is recognized in sales either at a point in time when the customer obtains control of merchandise through in-store pick-up, curbside pickup, or delivery, or over time as services are provided to the customer. Deferred revenues associated with amounts received for which customers have not taken possession of the merchandise or for which installation has not yet been completed were $774 million at May 1, 2020 , and $935 million at May 3, 2019 . The majority of revenue for goods and services is recognized in the quarter following revenue deferral. Deferred revenue - stored-value cards The Company defers revenues from stored-value cards, which include gift cards and returned merchandise credits, and recognizes revenue into sales when the cards are redeemed. The liability associated with outstanding stored-value cards was $438 million and $441 million at May 1, 2020 , and May 3, 2019 , respectively, and these amounts are included in deferred revenue on the consolidated balance sheets. The Company recognizes income from unredeemed stored-value cards in proportion to the pattern of rights exercised by the customer. Amounts recognized as breakage were insignificant for the three months ended May 1, 2020 , and May 3, 2019 . Deferred revenue - extended protection plans The Company defers revenues for its separately-priced extended protection plan contracts, which is a Lowe’s-branded program for which the Company is ultimately 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 five years from the date of purchase or the end of the manufacturer’s warranty, as applicable. Deferred revenue from extended protection plans recognized into sales were $107 million for the three months ended May 1, 2020 , and $99 million for the three months ended May 3, 2019 . 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 and were insignificant at May 1, 2020 , and May 3, 2019 , respectively. 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 for the three months ended May 1, 2020 , and $48 million for the three months ended May 3, 2019 . Disaggregation of Revenues The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended May 1, 2020 May 3, 2019 (In millions) Net Sales % Net Sales % Home Décor ¹ $ 6,930 35 $ 6,336 36 Hardlines ² 6,433 33 5,555 31 Building Products ³ 5,965 30 5,397 30 Other 347 2 453 3 Total $ 19,675 100 $ 17,741 100 Note: Merchandise division net sales for the prior period have been reclassified to conform to the current period presentation. 1 Home Décor includes the following product categories: Appliances, Décor, Flooring, Kitchens & Bath, and Paint 2 Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools 3 Building Products includes the following product categories: Building Materials, Electrical, Lighting, Lumber, Millwork, and Rough Plumbing The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended May 1, 2020 May 3, 2019 United States $ 18,760 $ 16,647 International 915 1,094 Net Sales $ 19,675 $ 17,741 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 and liabilities measured at fair value on a recurring basis as of May 1, 2020 , May 3, 2019 , and January 31, 2020 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level May 1, 2020 May 3, 2019 January 31, 2020 Assets: Short-term investments: Available-for-sale debt securities U.S. Treasury securities Level 1 $ 133 $ — $ 13 Money market funds Level 1 33 156 105 Corporate debt securities Level 2 28 12 23 Agency securities Level 2 7 22 19 Total short-term investments $ 201 $ 190 $ 160 Long-term investments: Available-for-sale debt securities U.S. Treasury securities Level 1 $ 214 $ 26 $ 280 Corporate debt securities Level 2 56 181 62 Agency securities Level 2 30 28 30 Total long-term investments $ 300 $ 235 $ 372 Liabilities: Other current liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 15 $ — $ 11 Total other current liabilities $ 15 $ — $ 11 Other liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 17 $ — $ — Total other liabilities $ 17 $ — $ — There were no transfers between Levels 1, 2, or 3 during any of the periods presented. When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, investments were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads, and benchmark securities, among others. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis During the three months ended May 1, 2020 , and May 3, 2019 , 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, 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 finance lease obligations, are as follows: May 1, 2020 May 3, 2019 January 31, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 20,106 $ 23,209 $ 17,090 $ 17,261 $ 16,648 $ 18,808 Mortgage notes (Level 2) 5 5 6 6 5 6 Long-term debt (excluding finance lease obligations) $ 20,111 $ 23,214 $ 17,096 $ 17,267 $ 16,653 $ 18,814 |
Restricted Investment Balances
Restricted Investment Balances | 3 Months Ended |
May 01, 2020 | |
Restricted Investment Balances | |
Restricted Investment Balances | 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 $201 million at May 1, 2020 , $190 million at May 3, 2019 , and $160 million at January 31, 2020 . Restricted balances included in long-term investments were $300 million at May 1, 2020 , $235 million at May 3, 2019 , and $372 million at January 31, 2020 . |
Property and Accumulated Deprec
Property and Accumulated Depreciation | 3 Months Ended |
May 01, 2020 | |
Property and Accumulated Depreciation | |
Property and Accumulated Depreciation | Property and Accumulated Depreciation - Property is shown net of accumulated depreciation of $17.4 billion at May 1, 2020 , $17.3 billion at May 3, 2019 , and $17.3 billion at January 31, 2020 . The Company recognized depreciation expense, inclusive of amounts presented in cost of sales and depreciation and amortization, of $359 million for the three months ended May 1, 2020 , and $324 million for the three months ended May 3, 2019 . |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
May 01, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings - In March 2020, the Company entered into a $1.02 billion five-year unsecured revolving credit agreement (the 2020 Credit Agreement) with a syndicate of banks. In connection with the 2020 Credit Agreement, the Company refinanced the 364-Day Credit Agreement (2019 Credit Agreement), dated as of September 9, 2019, and terminated any commitments under the 2019 Credit Agreement as of March 23, 2020. Borrowings under the 2020 Credit Agreement will bear interest calculated according to a Base Rate or a Eurocurrency Rate plus an applicable margin. The 2020 Credit Agreement contains customary representations, warranties and covenants for a transaction of this type. The Company was in compliance with those financial covenants at May 1, 2020 . The 2020 Credit Agreement, along with the $1.98 billion five year unsecured second amended and restated credit agreement (Second Amended and Restated Credit Agreement) entered into in September 2018, supports the Company’s commercial paper program. The amounts available to be drawn under the 2020 Credit Agreement and the Second Amended and Restated Credit Agreement are reduced by the amount of borrowings under the commercial paper program. As of May 1, 2020 , and May 3, 2019 , there were no outstanding borrowings under the 2020 Credit Agreement, Second Amended and Restated Credit Agreement, or the Company’s commercial paper program. Total combined availability under the 2020 Credit Agreement and the Second Amended and Restated Credit Agreement was $3.0 billion as of May 1, 2020 . As of May 1, 2020 , the Company held a $1.0 billion unsecured 364 -day term loan facility (Term Loan) entered in January 2020 that matures in December 2020. The weighted average interest rate of outstanding borrowings on the Term Loan was 1.86% as of May 1, 2020 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
May 01, 2020 | |
Long-Term Debt | |
Long-Term Debt | Long-Term Debt - On March 26, 2020, the Company issued $4.0 billion of unsecured fixed rate notes as follows: Principal Amount (in millions) Maturity Date Interest Rate Discount (in millions) $ 750 April 2025 4.000% $ 4 $ 1,250 April 2030 4.500% $ 12 $ 750 April 2040 5.000% $ 10 $ 1,250 April 2050 5.125% $ 13 Interest on the notes is payable semiannually in arrears in April and October of each year until maturity. The indenture governing the notes 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, up to, but excluding, 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% |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 3 Months Ended |
May 01, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments - The Company utilizes derivative financial instruments to hedge its exposure to changes in benchmark interest rates on forecasted debt issuances. The Company held forward interest rate swaps with notional amounts totaling $638 million at May 1, 2020, and $770 million at January 31, 2020. The Company did not hold forward interest rate swaps at May 3, 2019. See Note 3 , Fair Value Measurements, for the gross fair values of the Company’s outstanding derivative financial instruments and corresponding fair value classifications. The cash flows related to forward interest rate swaps are included within operating activities in the accompanying consolidated statements of cash flows. The Company accounts for these contracts as cash flow hedges, thus the effective portion of gains and losses resulting from changes in fair value are recognized in other comprehensive loss, net of tax effects, in the consolidated statements of comprehensive income and is recognized in earnings when the underlying hedged transaction impacts the consolidated statements of earnings. A summary of the gain/(loss) on forward interest rate swap derivatives designated as cash flow hedges recorded in other comprehensive loss and earnings for the three months ended May 1, 2020, and May 3, 2019, including its line item in the financial statements, is as follows: (In millions) Three Months Ended May 1, 2020 May 3, 2019 Other comprehensive loss Cash flow hedges - net of tax $ (104 ) $ (15 ) Net earnings Interest - net $ 1 $ — |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 01, 2020 | |
Shareholders' Equity | |
Shareholders' Equity | Shareholders’ Equity - The Company has a share repurchase program that is executed through purchases made from time to time either in the open market, which may be made under pre-set trading plans meeting the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934, or through private off-market transactions. Shares purchased under the repurchase program are retired and returned to authorized and unissued status. As of May 1, 2020 , the Company had $8.7 billion remaining in its share repurchase program. In February 2020, 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 3.9 million shares. The Company finalized the transaction and received an additional 1.6 million shares prior to the end of the first 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 limit 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 applicable ASR agreement. The initial repurchase of shares under 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. 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. In addition, during the three months ended May 1, 2020 , the Company repurchased shares of its common stock through the open market totaling 4.0 million shares for a cost of $440 million . The Company also withholds shares from employees to satisfy either the exercise price of stock options exercised or the statutory withholding tax liability resulting from the vesting of share-based awards. Shares repurchased for the three months ended May 1, 2020 , and May 3, 2019 were as follows: Three Months Ended May 1, 2020 May 3, 2019 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 9.5 $ 940 8.0 $ 818 Shares withheld from employees 0.1 7 0.1 13 Total share repurchases 9.6 $ 947 8.1 $ 831 1 Reductions of $927 million and $758 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 1, 2020 , and May 3, 2019 , respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 01, 2020 | |
Earnings Per Share | |
Earnings Per Share | Earnings Per Share - The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and, therefore, are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per common share for the three months ended May 1, 2020 , and May 3, 2019 : Three Months Ended (In millions, except per share data) May 1, 2020 May 3, 2019 Basic earnings per common share: Net earnings $ 1,337 $ 1,046 Less: Net earnings allocable to participating securities (4 ) (3 ) Net earnings allocable to common shares, basic $ 1,333 $ 1,043 Weighted-average common shares outstanding 755 796 Basic earnings per common share $ 1.76 $ 1.31 Diluted earnings per common share: Net earnings $ 1,337 $ 1,046 Less: Net earnings allocable to participating securities (4 ) (3 ) Net earnings allocable to common shares, diluted $ 1,333 $ 1,043 Weighted-average common shares outstanding 755 796 Dilutive effect of non-participating share-based awards 1 1 Weighted-average common shares, as adjusted 756 797 Diluted earnings per common share $ 1.76 $ 1.31 Stock options to purchase 1.0 million and 0.6 million shares of common stock were anti-dilutive for the three months ended May 1, 2020 , and May 3, 2019 |
Income Taxes
Income Taxes | 3 Months Ended |
May 01, 2020 | |
Income Taxes | |
Income Taxes | Income Taxes - The Company’s effective income tax rates were 25.1% for the three months ended May 1, 2020 , and 16.6% for the three months ended May 3, 2019 |
Supplemental Disclosure
Supplemental Disclosure | 3 Months Ended |
May 01, 2020 | |
Supplemental Disclosure | |
Supplemental Disclosure | Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended (In millions) May 1, 2020 May 3, 2019 Long-term debt $ 187 $ 154 Short-term borrowings 10 6 Finance lease obligations 8 7 Interest income (5 ) (7 ) Other 5 2 Interest – net $ 205 $ 162 Supplemental disclosures of cash flow information: Three Months Ended (In millions) May 1, 2020 May 3, 2019 Cash paid for interest, net of amount capitalized $ 345 $ 287 Cash paid for income taxes – net $ 9 $ 19 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 34 $ 3 Leased assets obtained in exchange for new operating lease liabilities $ 153 $ 145 Cash dividends declared but not paid $ 416 $ 382 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 01, 2020 | |
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 1, 2020 , and May 3, 2019 , the results of operations, comprehensive income, shareholders’ equity, and cash flows for the three months ended May 1, 2020 , and May 3, 2019 . The January 31, 2020 consolidated balance sheet was derived from the audited financial statements. These interim consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe’s Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended January 31, 2020 (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 period presentation, including the addition of cash flow hedges – net of tax on the consolidated statements of comprehensive income and the inclusion of goodwill within other assets on the consolidated balance sheets. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
May 01, 2020 | |
Revenue Recognition | |
Sources of Revenue | The following table presents the Company’s sources of revenue: (In millions) Three Months Ended May 1, 2020 May 3, 2019 Products $ 19,020 $ 16,900 Services 399 554 Other 256 287 Net sales $ 19,675 $ 17,741 |
Disaggregation of Revenues | The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended May 1, 2020 May 3, 2019 (In millions) Net Sales % Net Sales % Home Décor ¹ $ 6,930 35 $ 6,336 36 Hardlines ² 6,433 33 5,555 31 Building Products ³ 5,965 30 5,397 30 Other 347 2 453 3 Total $ 19,675 100 $ 17,741 100 Note: Merchandise division net sales for the prior period have been reclassified to conform to the current period presentation. 1 Home Décor includes the following product categories: Appliances, Décor, Flooring, Kitchens & Bath, and Paint 2 Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools 3 Building Products includes the following product categories: Building Materials, Electrical, Lighting, Lumber, Millwork, and Rough Plumbing |
Net Sales Disaggregated by Geographical Area | The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended May 1, 2020 May 3, 2019 United States $ 18,760 $ 16,647 International 915 1,094 Net Sales $ 19,675 $ 17,741 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements - Recurring Basis | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 1, 2020 , May 3, 2019 , and January 31, 2020 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level May 1, 2020 May 3, 2019 January 31, 2020 Assets: Short-term investments: Available-for-sale debt securities U.S. Treasury securities Level 1 $ 133 $ — $ 13 Money market funds Level 1 33 156 105 Corporate debt securities Level 2 28 12 23 Agency securities Level 2 7 22 19 Total short-term investments $ 201 $ 190 $ 160 Long-term investments: Available-for-sale debt securities U.S. Treasury securities Level 1 $ 214 $ 26 $ 280 Corporate debt securities Level 2 56 181 62 Agency securities Level 2 30 28 30 Total long-term investments $ 300 $ 235 $ 372 Liabilities: Other current liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 15 $ — $ 11 Total other current liabilities $ 15 $ — $ 11 Other liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 17 $ — $ — Total other liabilities $ 17 $ — $ — |
Fair Value of Financial Instruments | Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding finance lease obligations, are as follows: May 1, 2020 May 3, 2019 January 31, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 20,106 $ 23,209 $ 17,090 $ 17,261 $ 16,648 $ 18,808 Mortgage notes (Level 2) 5 5 6 6 5 6 Long-term debt (excluding finance lease obligations) $ 20,111 $ 23,214 $ 17,096 $ 17,267 $ 16,653 $ 18,814 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
May 01, 2020 | |
Long-Term Debt | |
Schedule of Unsecured Notes Issued | On March 26, 2020, the Company issued $4.0 billion of unsecured fixed rate notes as follows: Principal Amount (in millions) Maturity Date Interest Rate Discount (in millions) $ 750 April 2025 4.000% $ 4 $ 1,250 April 2030 4.500% $ 12 $ 750 April 2040 5.000% $ 10 $ 1,250 April 2050 5.125% $ 13 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
May 01, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Gain (Loss) on Interest Rate Swap Derivatives | A summary of the gain/(loss) on forward interest rate swap derivatives designated as cash flow hedges recorded in other comprehensive loss and earnings for the three months ended May 1, 2020, and May 3, 2019, including its line item in the financial statements, is as follows: (In millions) Three Months Ended May 1, 2020 May 3, 2019 Other comprehensive loss Cash flow hedges - net of tax $ (104 ) $ (15 ) Net earnings Interest - net $ 1 $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
May 01, 2020 | |
Shareholders' Equity | |
Schedule of Share Repurchases | Shares repurchased for the three months ended May 1, 2020 , and May 3, 2019 were as follows: Three Months Ended May 1, 2020 May 3, 2019 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 9.5 $ 940 8.0 $ 818 Shares withheld from employees 0.1 7 0.1 13 Total share repurchases 9.6 $ 947 8.1 $ 831 1 Reductions of $927 million and $758 million were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 1, 2020 , and May 3, 2019 , respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 01, 2020 | |
Earnings Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles earnings per common share for the three months ended May 1, 2020 , and May 3, 2019 : Three Months Ended (In millions, except per share data) May 1, 2020 May 3, 2019 Basic earnings per common share: Net earnings $ 1,337 $ 1,046 Less: Net earnings allocable to participating securities (4 ) (3 ) Net earnings allocable to common shares, basic $ 1,333 $ 1,043 Weighted-average common shares outstanding 755 796 Basic earnings per common share $ 1.76 $ 1.31 Diluted earnings per common share: Net earnings $ 1,337 $ 1,046 Less: Net earnings allocable to participating securities (4 ) (3 ) Net earnings allocable to common shares, diluted $ 1,333 $ 1,043 Weighted-average common shares outstanding 755 796 Dilutive effect of non-participating share-based awards 1 1 Weighted-average common shares, as adjusted 756 797 Diluted earnings per common share $ 1.76 $ 1.31 |
Supplemental Disclosure (Tables
Supplemental Disclosure (Tables) | 3 Months Ended |
May 01, 2020 | |
Supplemental Disclosure | |
Net Interest Expense | Net interest expense is comprised of the following: Three Months Ended (In millions) May 1, 2020 May 3, 2019 Long-term debt $ 187 $ 154 Short-term borrowings 10 6 Finance lease obligations 8 7 Interest income (5 ) (7 ) Other 5 2 Interest – net $ 205 $ 162 |
Supplemental Disclosures of Cash Flow Information | Supplemental disclosures of cash flow information: Three Months Ended (In millions) May 1, 2020 May 3, 2019 Cash paid for interest, net of amount capitalized $ 345 $ 287 Cash paid for income taxes – net $ 9 $ 19 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 34 $ 3 Leased assets obtained in exchange for new operating lease liabilities $ 153 $ 145 Cash dividends declared but not paid $ 416 $ 382 |
Revenue - Summary (Details)
Revenue - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 19,675 | $ 17,741 |
Net sales | 100.00% | 100.00% |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 18,760 | $ 16,647 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 915 | 1,094 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 19,020 | 16,900 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 399 | 554 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 256 | 287 |
Home Decor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 6,930 | $ 6,336 |
Net sales | 35.00% | 36.00% |
Hardlines | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 6,433 | $ 5,555 |
Net sales | 33.00% | 31.00% |
Building Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5,965 | $ 5,397 |
Net sales | 30.00% | 30.00% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 347 | $ 453 |
Net sales | 2.00% | 3.00% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Anticipated sales returns | $ 352 | $ 287 |
Right of return assets | 226 | 190 |
Up-front payment arrangement | 774 | 935 |
Liability for stored-value cards | 438 | 441 |
Deferred revenue from extended protection plans recognized in sales | 107 | 99 |
Accrual for claims incurred | $ 36 | $ 48 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Extended product warranty term | 1 year | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Extended product warranty term | 5 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - Estimate of Fair Value - USD ($) $ in Millions | May 01, 2020 | Jan. 31, 2020 | May 03, 2019 |
Short-term Investments | |||
Assets, Fair Value Disclosure | |||
Investments | $ 201 | $ 160 | $ 190 |
Short-term Investments | U.S. Treasury securities | Fair Value (Level 1) | |||
Assets, Fair Value Disclosure | |||
Investments | 133 | 13 | 0 |
Short-term Investments | Money market funds | Fair Value (Level 1) | |||
Assets, Fair Value Disclosure | |||
Investments | 33 | 105 | 156 |
Short-term Investments | Corporate debt securities | Fair Value (Level 2) | |||
Assets, Fair Value Disclosure | |||
Investments | 28 | 23 | 12 |
Short-term Investments | Agency securities | Fair Value (Level 2) | |||
Assets, Fair Value Disclosure | |||
Investments | 7 | 19 | 22 |
Long-term Investments | |||
Assets, Fair Value Disclosure | |||
Investments | 300 | 372 | 235 |
Long-term Investments | U.S. Treasury securities | Fair Value (Level 1) | |||
Assets, Fair Value Disclosure | |||
Investments | 214 | 280 | 26 |
Long-term Investments | Corporate debt securities | Fair Value (Level 2) | |||
Assets, Fair Value Disclosure | |||
Investments | 56 | 62 | 181 |
Long-term Investments | Agency securities | Fair Value (Level 2) | |||
Assets, Fair Value Disclosure | |||
Investments | 30 | 30 | 28 |
Other current liabilities | |||
Liabilities, Fair Value Disclosure | |||
Other current liabilities | 15 | 11 | 0 |
Other current liabilities | Forward interest rate swaps | Fair Value (Level 2) | |||
Liabilities, Fair Value Disclosure | |||
Other current liabilities | 15 | 11 | 0 |
Other noncurrent liabilities | |||
Liabilities, Fair Value Disclosure | |||
Total other liabilities | 17 | 0 | 0 |
Other noncurrent liabilities | Forward interest rate swaps | Fair Value (Level 2) | |||
Liabilities, Fair Value Disclosure | |||
Other liabilities | $ 17 | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | May 01, 2020 | Jan. 31, 2020 | May 03, 2019 |
Financial Instruments | |||
Long-term debt carrying value (excluding finance lease obligations) | $ 20,111 | $ 16,653 | $ 17,096 |
Unsecured Notes | |||
Financial Instruments | |||
Long-term debt carrying value (excluding finance lease obligations) | 20,106 | 16,648 | 17,090 |
Mortgage Notes | |||
Financial Instruments | |||
Long-term debt carrying value (excluding finance lease obligations) | 5 | 5 | 6 |
Estimate of Fair Value | |||
Financial Instruments | |||
Long-term debt fair value (excluding finance lease obligations) | 23,214 | 18,814 | 17,267 |
Estimate of Fair Value | Unsecured Notes | Fair Value (Level 1) | |||
Financial Instruments | |||
Long-term debt fair value (excluding finance lease obligations) | 23,209 | 18,808 | 17,261 |
Estimate of Fair Value | Mortgage Notes | Fair Value (Level 2) | |||
Financial Instruments | |||
Long-term debt fair value (excluding finance lease obligations) | $ 5 | $ 6 | $ 6 |
Restricted Investment Balances
Restricted Investment Balances (Details) - USD ($) $ in Millions | May 01, 2020 | Jan. 31, 2020 | May 03, 2019 |
Restricted Investment Balances | |||
Restricted balances included in short-term investments | $ 201 | $ 160 | $ 190 |
Restricted balances included in long-term investments | $ 300 | $ 372 | $ 235 |
Property and Accumulated Depr_2
Property and Accumulated Depreciation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 01, 2020 | May 03, 2019 | Jan. 31, 2020 | |
Property and Accumulated Depreciation | |||
Accumulated depreciation | $ 17,400 | $ 17,300 | $ 17,300 |
Depreciation | $ 359 | $ 324 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2018 | May 01, 2020 | |
Short-term Debt [Line Items] | |||
Weighted average interest rate of outstanding borrowings | 1.86% | ||
Term Loan | |||
Short-term Debt [Line Items] | |||
Debt instrument term | 364 days | ||
Unsecured term loan facility | $ 1,000,000,000 | ||
Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 3,000,000,000 | ||
Revolving Credit Facility | 2020 Credit Agreement | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 1,020,000,000 | ||
Debt instrument term | 5 years | ||
Revolving Credit Facility | Second Amended And Restated Credit Agreement | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 1,980,000,000 | ||
Debt instrument term | 5 years |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) | Mar. 26, 2020USD ($) |
Unsecured Notes, 4.000% | |
Long-Term Debt | |
Unsecured notes, issued | $ 750,000,000 |
Unsecured notes, interest rate | 4.00% |
Unamortized discount | $ 4,000,000 |
Unsecured Notes, 4.500% | |
Long-Term Debt | |
Unsecured notes, issued | $ 1,250,000,000 |
Unsecured notes, interest rate | 4.50% |
Unamortized discount | $ 12,000,000 |
Unsecured Notes, 5.000% | |
Long-Term Debt | |
Unsecured notes, issued | $ 750,000,000 |
Unsecured notes, interest rate | 5.00% |
Unamortized discount | $ 10,000,000 |
Unsecured Notes, 5.125% | |
Long-Term Debt | |
Unsecured notes, issued | $ 1,250,000,000 |
Unsecured notes, interest rate | 5.125% |
Unamortized discount | $ 13,000,000 |
Unsecured Notes | |
Long-Term Debt | |
Unsecured notes, issued | $ 4,000,000,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 3 Months Ended |
May 01, 2020 | |
2019 Combined Notes | |
Long-Term Debt | |
Debt instrument, redemption price, percentage | 101.00% |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 01, 2020 | May 03, 2019 | Jan. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cash flow hedges – net of tax | $ (102) | $ (15) | |
Forward interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount of derivatives | 638 | $ 770 | |
Cash flow hedges – net of tax | (104) | (15) | |
Interest expense | Forward interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Interest - net | $ 1 | $ 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) shares in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2020 | May 01, 2020 | May 03, 2019 | |
Share Repurchases | |||
Cash used to repurchase shares | $ 966,000,000 | $ 826,000,000 | |
Share repurchase program | |||
Share Repurchases | |||
Remaining share repurchases authorization, value | $ 8,700,000,000 | ||
Repurchase of common stock (in shares) | 9.5 | 8 | |
Share repurchases, cost | $ 940,000,000 | $ 818,000,000 | |
Accelerated Share Repurchase | |||
Share Repurchases | |||
Share repurchases authorized, value | $ 500,000,000 | ||
Cash used to repurchase shares | $ 500,000,000 | ||
Repurchase of common stock (in shares) | 3.9 | 1.6 | |
Open Market Purchases | |||
Share Repurchases | |||
Share repurchases (in shares) | 4 | ||
Share repurchases, cost | $ 440,000,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Share Repurchases | ||
Reduction in retained earnings | $ 927 | $ 758 |
Share repurchase program | ||
Share Repurchases | ||
Share repurchases (in shares) | 9.5 | 8 |
Share repurchases, cost | $ 940 | $ 818 |
Shares withheld from employees | ||
Share Repurchases | ||
Share repurchases (in shares) | 0.1 | 0.1 |
Share repurchases, cost | $ 7 | $ 13 |
Shares Repurchase Program And Shares Repurchased From Employees | ||
Share Repurchases | ||
Share repurchases (in shares) | 9.6 | 8.1 |
Share repurchases, cost | $ 947 | $ 831 |
Earnings Per Share - Summary (D
Earnings Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Basic earnings per common share: | ||
Net earnings | $ 1,337 | $ 1,046 |
Less: Net earnings allocable to participating securities | (4) | (3) |
Net earnings allocable to common shares, basic | $ 1,333 | $ 1,043 |
Weighted-average common shares outstanding (in shares) | 755 | 796 |
Basic earnings per common share (in dollars per share) | $ 1.76 | $ 1.31 |
Diluted earnings per common share: | ||
Net earnings | $ 1,337 | $ 1,046 |
Less: Net earnings allocable to participating securities | (4) | (3) |
Net earnings allocable to common shares, diluted | $ 1,333 | $ 1,043 |
Weighted-average common shares outstanding (in shares) | 755 | 796 |
Dilutive effect of non-participating share-based awards (in shares) | 1 | 1 |
Weighted-average common shares, as adjusted (in shares) | 756 | 797 |
Diluted earnings per common share (in dollars per share) | $ 1.76 | $ 1.31 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Earnings Per Share | ||
Anti-dilutive securities (in shares) | 1 | 0.6 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Income Taxes | ||
Effective income tax rate | 25.10% | 16.60% |
Supplemental Disclosure - Net I
Supplemental Disclosure - Net Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Net interest expense | ||
Long-term debt | $ 187 | $ 154 |
Short-term borrowings | 10 | 6 |
Finance lease obligations | 8 | 7 |
Interest income | (5) | (7) |
Other | 5 | 2 |
Interest – net | $ 205 | $ 162 |
Supplemental Disclosure - Cash
Supplemental Disclosure - Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2020 | May 03, 2019 | |
Supplemental disclosures of cash flow information | ||
Cash paid for interest, net of amount capitalized | $ 345 | $ 287 |
Cash paid for income taxes – net | 9 | 19 |
Non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new finance lease liabilities | 34 | 3 |
Leased assets obtained in exchange for new operating lease liabilities | 153 | 145 |
Cash dividends declared but not paid | $ 416 | $ 382 |
Uncategorized Items - form10q_0
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (263,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (263,000,000) |