Lowe's 2003 Annual Report Download - page 40

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38 LOWE’S COMPANIES, INC.
Note 13
|
Income taxes.
The following is a reconciliation of the effective tax rate to the
federal statutory tax rate for continuing operations.
2003 2002 2001
Statutory Federal Income Tax Rate 35.0% 35.0% 35.0%
State Income Taxes—Net of Federal
Tax Benefit 3.1 3.3 3.0
Stock Compensation Expense 0.2 0.0 0.0
Other, Net (0.4) (0.7) (1.0)
Effective Tax Rate 37.9% 37.6% 37.0%
Components of Income Tax Provision
(In Millions) for Continuing Operations
Current
Federal $ 833 $ 590 $ 485
State 124 82 67
Total Current 957 672 552
Deferred
Federal 161 172 34
State 18 36 7
Total Deferred 179 208 41
Total Income Tax Provision $1,136 $ 880 $ 593
The tax effect of cumulative temporary differences that gave
rise to the deferred tax assets and liabilities at January 30, 2004 and
January 31, 2003 is as follows:
January 30, 2004
(In Millions) Assets Liabilities Total
Excess Property and
Store Closing Costs $ 22 $ – $ 22
Self-Insurance 30 – 30
Depreciation – (674) (674)
Vacation Accrual 5 – 5
Allowance for Sales Returns 32 – 32
Other, Net 18 (31) (13)
Total $ 107 $ (705) $ (598)
January 31, 2003
(In Millions) Assets Liabilities Total
Excess Property and
Store Closing Costs $ 24 $ – $ 24
Self-Insurance 58 – 58
Depreciation – (498) (498)
Vacation Accrual 5 – 5
Allowance for Sales Returns 26 – 26
Other, Net 6 (41) (35)
Total $ 119 $ (539) $ (420)
Note 14
|
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 believed to have a risk of having a material impact
on the Company’s financial statements.
Note 15
|
Other information.
Net interest expense is comprised of the following:
(In Millions) 2003 2002 2001
Long-Term Debt $ 157 $ 163 $ 161
Mortgage Interest 5 5 8
Capitalized Leases 40 40 41
Short-Term Debt – 1 4
Amortization of Original Issue
Discount and Loan Costs 19 19 18
Interest Income (15) (21) (24)
Interest Capitalized (26) (25) (34)
Net Interest Expense $ 180 $ 182 $ 174
Supplemental Disclosures of Cash Flow Information:
(In Millions) 2003 2002 2001
Cash Paid for Interest
(Net of Amount Capitalized) $ 179 $ 186 $ 178
Cash Paid for Income Taxes $ 926 $ 695 $ 532
Noncash Investing and Financing Activities:
Fixed Assets Acquired under
Capital Leases $ 3 $ 16 $ 13
Common Stock Issued to ESOP (Note 12) – 79 63
Common Stock Issued to Executives and
Directors, net of Unearned Compensation – – 2
Notes Received in Exchange for Sale
of Real Estate $ – $ 4 $ 4