Lowe's 1999 Annual Report Download - page 27

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respectively. Gross realized gains and losses on the sale of
available-for-sale securities were not significant for any of the
periods presented. Municipal obligations classified as long-term
at January 28, 2000 will mature in 1 to 5 years.
Note 4 – Property and
Accumulated Depreciation
Property is summarized below by major class:
January 28, 2000 January 29, 1999
(In Thousands)
Cost:
Land $1,488,896 $1,051,458
Buildings 2,516,951 2,049,533
Store, Distribution and
Office Equipment 2,147,532 1,777,621
Leasehold Improvements 293,945 234,681
Total Cost 6,447,324 5,113,293
Accumulated Depreciation and
Amortization (1,270,102) (1,027,495)
Net Property $5,177,222 $4,085,798
The estimated depreciable lives, in years, of the Company’s
property are: buildings, 20 to 40; store, distribution and office
equipment, 3 to 10; leasehold improvements, generally the life
of the related lease.
Net property includes $478.6 and $466.5 million in assets
under capital leases at January 28, 2000 and January 29, 1999,
respectively.
Note 5 – Short-Term Borrowings
and Lines of Credit
The Company has a $300 million revolving credit facility
with a syndicate of 11 banks. The facility has $100 million
expiring November 2000, with the remaining $200 million
expiring November 2001. The facility is used to support the
Company’s commercial paper program and for short-term bor-
rowings. Facility fees ranging from .06% to .075% are paid on
the unused amount of these facilities. The revolving credit
facility contains certain restrictive covenants including mainte-
nance of specific financial ratios. There were no borrowings
outstanding under this revolving credit facility as of January 28,
2000 or January 29, 1999.
The Company had short-term borrowings of $24.6 million
outstanding as of January 29, 1999 under a $75 million revolv-
ing credit facility. This credit facility expired June 30, 1999.
Seven banks have extended lines of credit aggregating
$218.2 million for the purpose of issuing documentary letters of
credit and standby letters of credit. These lines do not have
termination dates but are reviewed periodically. Commitment
fees ranging from .25% to .50% per annum are paid on the
amounts of standby letters of credit issued. At January 28, 2000,
outstanding letters of credit totaled $108.8 million.
A $100 million revolving credit and security agreement,
expiring in November 2000 and renewable annually, is available
from a financial institution. Interest rates under this agreement
are determined at the time of borrowing. Under the current
terms of the agreement, borrowings are based upon commercial
paper rates plus 29 basis points. At January 28, 2000 and
January 29, 1999, there were $92.5 million outstanding under
this credit and security agreement and $146.7 and $132.1
million, respectively, of the Company’s accounts receivable
were pledged as collateral.
In addition, $50 and $80 million was available, on an
unsecured basis, for the purpose of short-term borrowings on a
bid basis from various banks as of January 28, 2000 and January
29, 1999. These lines are uncommitted and are reviewed peri-
odically by both the banks and the Company. There were no
borrowings outstanding under these lines of credit as of January
28, 2000 or January 29, 1999.
The weighted average interest rate on short-term borrow-
ings outstanding at January 28, 2000 and January 29, 1999 was
5.91% and 5.64%, respectively.
Note 6 – Long-Term Debt
Fiscal Year
Debt Category of Final January 28, January 29,
Interest Rates Maturity 2000 1999
(In Thousands)
Secured Debt1:
Industrial Revenue Bonds
3.35%* 2020 $ 2,353 $ 2,536
Industrial Revenue Bonds2
4.39%* 2005 700 900
Mortgage Notes
7.35% to 9.25%*2008 79,927 88,223
Other Notes
3.87% to 9.50% *2006 6,071 7,826
Unsecured Debt:
Debentures
6.50% to 6.88% *2029 691,167 296,284
Medium Term Notes – Series A
6.50% to 8.20% *2022 155,000 238,999
Medium Term Notes3 – Series B
6.70% to 7.61% *2037 266,067 266,004
Senior Notes
6.38% 2005 99,386 99,282
Capital Leases
6.12% to 19.57% *2029 485,816 472,117
Total Long-Term Debt 1,786,487 1,472,171
Less Current Maturities 59,908 107,893
Long-Term Debt, Excluding
Current Maturities $1,726,579 $1,364,278
*Interest rate varies as a percentage of prime rate or other interest
index. Interest rates shown are as of January 28, 2000. Prime
rate was 8.50% at January 28, 2000.