Lowe's 2001 Annual Report Download - page 34

Lo we’s Co mpanies, Inc. 32
tio ns net of anticipated sublease inco me. The fo llo wing table illus-
trates this liability and the respective changes in the o bligatio n,
which is included in o ther current liabilities in the co nso lidated
balance sheet.
Lease Liability
Balance at January 29, 1999 $ 18,433,701
Accrual fo r Sto re Clo sing Co sts 4, 489,091
Lease Payments, Net o f Sublease Inco me ( 5,483,037)
Balance at January 28, 2000 $ 17,439,755
Accrual fo r Sto re Clo sing Co sts 8, 246,117
Lease Payments, Net o f Sublease Inco me ( 6,250,011)
Balance at February 2, 2001 $ 19,435,861
Accrual fo r Sto re Clo sing Co sts 6, 262,682
Lease Payments, Net o f Sublease Inco me ( 8,646,099)
Balance at February 1, 2002 $ 17,052,444
NOTE 6 > SHORT-TERM BORROWI NGS
AND LINES OF CREDIT
The Co mpany has an $800 millio n senio r credit facility. The facili-
ty is split into a $400 millio n five-year tranche, expiring in August
2006 and a $400 millio n 364- day tranche, expiring in Aug ust 2002,
which is renewable annually. The facility is used to suppo rt the
Co mpany’s $800 millio n c o mmercial paper pro g ram and fo r sho rt-
term bo rro wings. Bo rro wings made are priced based upo n market
co nditio ns at the time o f funding in acco rdance with the terms o f
the senio r credit facility. The senio r credit facility co ntains certain
restrictive co venants which include maintenance o f specific finan-
cial ratio s, amo ng o thers. The Co mpany was in co mpliance with
these co venants at February 1, 2002. Fifteen banking institutio ns
are participating in the $800 millio n senior credit facility and as o f
February 1, 2002, there were no o utstanding lo ans under the facil-
ity. This facility replac ed a $300 millio n revo lving credit agreement
in August 2001. The Co mpany intends to renew the 364- day
tranche in August 2002. At February 2, 2001, the Co mpany had
$149.8 millio n o f c o mmercial paper o utstanding suppo rted by the
$300 millio n facility.
The Co mpany also has a $100 millio n revo lving credit and secu-
rity agreement, expiring in December 2002 and renewable annual-
ly, with a financial institutio n. Interest rates under this agreement
are determined at the time o f bo rro wing based o n market co ndi-
tio ns in acco rdance with the terms o f the agreement. The Co mpany
had $100 millio n o utstanding at February 1, 2002 under this
agreement. The Co mpany intends to renew this facility in
December 2002. At February 1, 2002, the Co mpany had $134.7 mil-
lio n in acco unts receivable pledged as co llateral under this agree-
ment. This agreement replac ed a $100 millio n revo lving credit
agreement which expired in No vember 2001. The Co mpany had
$100 millio n o utstanding and had $145.0 millio n in acco unts
receivable pledged as co llateral at February 2, 2001 under the fo r-
mer agreement.
In addition, $25 millio n was available as o f February 1, 2002,
and $100 millio n was available o n February 2, 2001, o n an unse-
cured basis, fo r the purpo se o f sho rt- term bo rrowing s o n a bid
basis fro m vario us banks. These lines are unc o mmitted and are
reviewed perio dically by bo th the banks and the Co mpany. There
were no bo rro wings o utstanding under these lines o f credit as o f
February 1, 2002 o r February 2, 2001.
Seven banks have extended lines o f credit aggregating $276.5
millio n fo r the purpo se of issuing do cumentary letters of c redit and
standby letters of credit. These lines do no t have terminatio n dates
but are reviewed perio dically. Co mmitment fees ranging fro m .25%
to .50% per annum are paid o n the amo unts o f standby letters o f
credit. Outstanding letters of credit to taled $162.2 millio n as of
February 1, 2002 and $133.2 millio n as of February 2, 2001.
The interest rate o n sho rt-term bo rro wings o utstanding at
February 1, 2002 was 1.86% . At February 2, 2001, the weighted
average interest rate o n short-term bo rro wings was 6.40% .
NOTE 7 > LONG-TERM DEBT
Fiscal Ye ar
( In Tho usands) of Final February 1, February 2,
De bt Cate go ry Inte rest Rates Maturity 2002 2001
Secured Debt:1
Mortgage Notes 7.00% to 9.25% 2028 $ 61,631 $ 93,395
Other No tes 1.55% to 8.00% 2020 4,764 7,117
Unsecured Debt:
Debentures 6.50% to 6.88% 2029 691, 790 691, 481
No te s 7. 50% to 8.25% 2010 993,692 992,583
Medium Te rm No tes
Series A 7.08% to 8.20% 2023 106,000 121,000
Medium Te rm No tes2
Series B 6.70% to 7.59% 2037 266,363 266,215
Senio r No tes 6.38% 2005 99,597 99,493
Co nvertible No tes 0.9% to 2.5% 2021 1, 102,677 –
Capital Leases 6. 58% to 19.57% 2029 466,756 468, 726
Total Long-Term Debt 3,793,270 2,740,010
Less Current Maturities 59,259 42,341
Long-Term Debt, Excluding
Current Maturities $3,734,011 $2,697,669