Lowe's 2001 Annual Report Download - page 21

Lo we’s Co mpanies, Inc.
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Manage ment’s Respo nsibility fo r Financial Repo rting
Lo we ’s management is respo nsible fo r the preparatio n, integrity and fair presentatio n of its published financial statements. These statements
have been prepared in acco rdance with generally accepted acco unting princ iples in the United States of America and, as such, include
amo unts based o n management’s best estimates and judgments. Lo we’s management also prepared the o ther info rmatio n included in the
annual repo rt and is respo nsible fo r its accuracy and co nsistency with the financ ial statements.
The Co mpany’s financial statements have been audited by the independent acco unting firm Delo itte & To uche LLP, which was
given unrestricted access to all financial reco rds and related data. The Co mpany believes that all representatio ns made to the independent
audito rs during their audits were valid and appro priate. Delo itte & To uche’s audit repo rt presented herein pro vides an independent o pinio n
upo n the fairness of the financial statements.
The Co mpany maintains a system o f internal co ntro l o ver financial repo rting, which is designed to pro vide reaso nable assurance to Lo we’s
management and Bo ard of Directo rs reg arding the preparatio n of reliable published financial statements. The system includes appro priate
divisio ns o f respo nsibility, established po licies and pro cedures, including a co de of co nduct to fo ster a stro ng ethical climate, which are
co mmunicated thro ugho ut the Co mpany, and the careful selec tio n, training and develo pment o f its peo ple. Internal audito rs mo nito r the
o peratio n of the internal co ntro l system and repo rt findings and reco mmendatio ns to management and the Bo ard of Directo rs, and co rrec-
tive actio ns are taken to address co ntro l deficiencies and o ther o ppo rtunities fo r impro ving the system as they are identified. The Bo ard,
o perating thro ugh its audit co mmittee, pro vides o versight to the financial repo rting pro cess.
Ro bert L. Tillman Ro bert A. Niblo ck
Chairman o f the Bo ard and Chief Executive Officer Exec utive Vice President and Chief Financial Offic er
Our Annual Repo rt talks abo ut o ur future, particularly in the sectio ns titled “To Our Shareholders” and “Manageme nt’s Discussio n and Analysis
of Financial Co nditio n and Results o f Operatio ns.” While we believe o ur expectations are reaso nable, we c an’t guarantee them and yo u sho uld
co nsider this when thinking abo ut statements we make that aren’t histo rical facts. So me of the things that co uld cause o ur actual results to
differ substantially from o ur expectatio ns are:
* Our sales are dependent upo n the general eco no mic health of the co untry, variatio ns in the number of new ho using starts and existing
ho me sales, the level of repairs, remo deling and additio ns to existing ho mes, co mmercial building activity, and the availability and co st
of financing. An eco no mic do wnturn affecting c o nsumer co nfidence in making ho using and ho me impro vement expenditures, c o uld affect
sales because a po rtio n of o ur invento ry is purchased fo r discretio nary projects, which can be delayed.
* Our expansio n strateg y may be impacted by enviro nmental regulatio ns, lo cal zo ning issues and delays, availability and develo pme nt
of land, and mo re stringent land use regulatio ns than we have traditio nally experienced as well as the availability o f sufficient labo r to
facilitate o ur gro wth.
* Many o f o ur pro ducts are co mmo dities who se prices fluctuate erratically within an eco no mic cycle, a co nditio n especially true of lumber and plywo o d.
* Our business is highly co mpetitive, and as we expand to larger markets we may face new fo rms of co mpetitio n which do no t exist in so me
of the markets we have traditio nally served.
* The ability to c o ntinue o ur everyday co mpetitive pricing strategy and pro vide the pro ducts that custo mers want depends o n o ur vendo rs
providing a reliable supply o f invento ry at co mpetitive prices.
* On a sho rt- term basis, weather may affect sales o f pro duc t groups like nursery, lumber, and building materials.
Disclo sure Regarding Fo rward-Lo o king Statements