Lowe's 1998 Annual Report Download - page 32

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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 29, 1999 and January 30, 1998 is as follows (in thousands):
January 29, 1999 January 30, 1998
Assets Liabilities Total Assets Liabilities Total
Accrued Excess Property
and Store Closing Costs $20,046 — $ 20,046 $16,208 — $ 16,208
Insurance 15,120 — 15,120 11,338 — 11,338
Depreciation — $(179,060) (179,060) — $(144,601) (144,601)
Property Taxes 1,561 — 1,561 3,140 — 3,140
Other, Net 42,431 (4,237) 38,195 36,001 (11,748) 24,253
Total $79,158 $(183,297) $(104,139) $66,687 $(156,349) $ (89,662)
There was no valuation allowance at January 29, 1999 or January 30, 1998. The valuation allowance decreased $0.3
million in 1997 and decreased $1.3 million in 1996.
Note 12, 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:
1998 1997 1996
(In Thousands)
Long-Term Debt $63,592 $34,936 $31,300
Capitalized Leases 39,104 38,255 29,076
Short-Term Debt 5,506 7,913 4,368
Amortization of Loan Costs 779 527 403
Interest Income (20,218) (7,741) (8,765)
Interest Capitalized (14,028) (8,323) (7,315)
Net Interest Expense $74,735 $65,567 $49,067
Supplemental Disclosures of Cash Flow Information:
1998 1997 1996
(In Thousands)
Cash Paid for Interest
(Net of Amount Capitalized) $ 99,574 $ 74,005 $ 66,350
Cash Paid for Income Taxes $262,583 $196,144 $125,266
Noncash Investing and Financing Activities:
Fixed Assets Acquired Under
Capital Leases $ 47,303 $ 32,738 $182,676
Termination of Capital Leases 10,401 — —
Common Stock Issued to ESOP (Note 10) 60,074 56,630 43,890
Common Stock Issued to Executives and Directors,
net of Unearned Compensation 17,853 6,407 2,030
Conversion of Debt to Common Stock — — $256,798
Notes Received in Exchange for Assets — 600 —
Notes Issued in Exchange for Assets $ 6,014 $ 2,200 —
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