Lowe's 1997 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 of the 1997 Lowe's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 40

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40

Note 11, Income Taxes:
1997 1996 1995
Amount % Amount % Amount %
(In Thousands) Statutory Rate Reconciliation
Pre-Tax Earnings $558,547 100.0% $453,606 100.0% $352,107 100.0%
Federal Income Tax at Statutory Rate 195,491 35.0 158,762 35.0 123,237 35.0
State Income Taxes – Net of Federal Tax Benefit 12,406 2.2 7,968 1.8 8,093 2.3
Other, Net (6,834) (1.2) (5,274) (1.2) (5,250) (1.5)
Total Income Tax Provision $201,063 36.0% $161,456 35.6% $126,080 35.8%
Components of Income Tax Provision
Current
Federal $175,649 87.4% $135,075 83.7% $ 86,347 68.5%
State 17,777 8.8 9,338 5.8 6,809 5.4
Total Current 193,426 96.2 144,413 89.5 93,156 73.9
Deferred
Federal 6,328 3.1 14,122 8.7 27,282 21.6
State 1,309 0.7 2,921 1.8 5,642 4.5
Total Deferred 7,637 3.8 17,043 10.5 32,924 26.1
Total Income Tax Provision $201,063 100.0% $161,456 100.0% $126,080 100.0%
The tax effect of cumulative temporary differences and carryforwards that gave rise to the deferred tax assets and
liabilities and the related valuation allowance at January 30, 1998 and January 31, 1997 is as follows (in thousands):
January 30, 1998 January 31, 1997
(In Thousands) Assets Liabilities Total Assets Liabilities Total
Accrued Excess Property
and Store Closing Costs $16,208 — $ 16,208 $13,966 — $ 13,966
Insurance 11,338 — 11,338 9,470 — 9,470
Depreciation — $(144,601) (144,601) — $(117,779) (117,779)
Property Taxes 3,140 — 3,140 5,371 — 5,371
Other, Net 36,001 (11,748) 24,253 17,081 (9,555) 7,526
Less Valuation Allowance — — — (311) — (311)
Total $66,687 $(156,349) $ (89,662) $45,577 $(127,334) $ (81,757)
The valuation allowance decreased $311,000 in 1997 and $1,254,000 in 1996, and increased $1,416,000 in 1995.
Note 12, Commitments, Contingencies and Litigation:
The Company is a defendant in legal proceedings considered to be in the normal course of business, none of which,
singularly or collectively, are considered material to the Company.
Note 13, Other Information:
Net interest expense is composed of the following:
1997 1996 1995
(In Thousands)
Long-Term Debt $34,936 $31,300 $34,536
Capitalized Leases 38,255 29,076 16,872
Short-Term Debt 7,913 4,368 3,001
Amortization of Loan Costs 527 403 296
Short-Term Interest Income (7,741) (8,765) (10,897)
Interest Capitalized (8,323) (7,315) (5,768)
Net Interest Expense $65,567 $49,067 $38,040
Supplemental Disclosures of Cash Flow Information:
1997 1996 1995
(In Thousands)
Cash Paid for Interest
(Net of Amount Capitalized) $ 74,005 $ 66,350 $55,231
Cash Paid for Income Taxes $196,144 $125,266 $77,858
Noncash Investing and Financing Activities:
Fixed Assets Acquired Under
Capital Leases $ 32,738 $182,676 $96,948
Common Stock Issued to ESOP (Note 10) 56,628 43,890 37,222
Common Stock Issued to Executives and Directors,
net of Unearned Compensation 6,407 2,030 1,035
Conversion of Debt to Common Stock — 256,798 2,232
Notes Received in Exchange for Property 600 — 1,450
Notes Issued in Exchange for Property $ 2,200 $ — $ —
32