Lowe's 2000 Annual Report Download - page 30

Lowe’s Companies, Inc.
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obligations, corporate notes and the federal agency note classified as
long-term at February 2, 2001 will mature in 1to 5years.
Property and Accumulated
Depreciation
Property is summarized below by major class:
February 2, January 28,
(In Thousands) 2001 2000
Cost:
Land $2,150,206 $ 1,488,896
Buildings 3,465,163 2,516,951
Store, Distribution and Office Equipment 2,623,822 2,147,532
Leasehold Improvements 389,140 293,945
Total Cost 8,628,331 6,447,324
Accumulated Depreciation and Amortization (1,593,371) (1,270,102)
Net Property $7,034,960 $5,177,222
The estimated depreciable lives, in years, of the Company’s
property are: buildings, 20 to 40; store, distribution and office
equipment, 3to 10; leasehold improvements, generally the life of
the related lease.
Net property includes $454.4and $478.6million in assets
under capital leases at February 2, 2001 and January 28, 2000,
respectively.
Short-Term Borrowings and
Lines of Credit
The Company has a $300 million revolving credit facility expir-
ing in November 2001 with a syndicate of 11 banks. The facility is
used to support the Company’s commercial paper program and
for short-term borrowings. 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 maintenance of specific financial ratios. As of February 2,
2001, the Company had $149.8million of commercial paper out-
standing under this revolving credit facility. There were no bor-
rowings outstanding under this facility as of January 28, 2000.
A$100 million revolving credit and security agreement, expir-
ing in November 2001 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. The Company had $100 million out-
standing at February 2, 2001 and $92.5million outstanding at
January 28, 2000 under this credit and security agreement. At
February 2, 2001 and January 28, 2000, $145.0million and
$146.7million, respectively, of the Company’s accounts receiv-
able were pledged as collateral under this agreement.
In addition, $100 million was available as of February 2, 2001,
and $50 million was available on January 28, 2000, on an unse-
cured basis, for the purpose of short-term borrowings on a bid
basis from various banks. These lines are uncommitted and are
reviewed periodically by both the banks and the Company. There
were no borrowings outstanding under these lines of credit as of
February 2, 2001 or January 28, 2000.
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 stand-
by letters of credit issued. Outstanding letters of credit totaled
$133.2million at February 2, 2001.
The weighted average interest rate on short-term borrowings
outstanding at February 2, 2001 and January 28, 2000 was
6.40% and 5.91%, respectively.
Long-Term
Debt
Fiscal Year
(In Thousands) of Final February 2, January 28,
Debt Category Interest Rates Maturity 2001 2000
Secured Debt:1
Mortgage Notes 7.00% to 9.25% 2028 $ 93,395 $ 79,927
Other Notes 3.87% to 8.00% 2020 7,117 9,124
Unsecured Debt:
Debentures 6.50% to 6.88% 2029 691,481 691,167
Notes 7.50% to 8.25% 2010 992,583 –
Medium Term Notes
Series A 7.08% to 8.20% 2023 121,000 155,000
Medium Term Notes2
Series B 6.70% to 7.61% 2037 266,215 266,067
Senior Notes 6.38% 2005 99,493 99,386
Capital Leases 6.12% to 19.57% 2029 468,726 485,816
Total Long-Term Debt 2,740,010 1,786,487
Less Current Maturities 42,341 59,908
Long-Term Debt, Excluding
Current Maturities $2,697,669 $1,726,579
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