Lowe's 2004 Annual Report Download - page 37

Lowe’s 2004 Annual Report Page 35
Consolidated Balance Sheet
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January 30,
2004 January 30,
As Previously 2004
(In Millions) Reported * Adjustments As Restated
Deferred Income Taxes $ 59 $ 3 $ 62
Total Current Assets 6,519 3 6,522
Property, Less Accumulated Depreciation 11,945 (126) 11,819
Total Assets $ 18,874 $ (123) $ 18,751
Deferred Income Taxes 657 (63) 594
Other Long-Term Liabilities 30 33 63
Total Liabilities 8,565 (30) 8,535
Capital in Excess of Par 2,237 10 2,247
Retained Earnings 7,677 (103) 7,574
Total Shareholders’ Equity 10,309 (93) 10,216
Total Liabilities and Shareholders’ Equity $ 18,874 $ (123) $ 18,751
* Certain amounts have been reclassified to conform to current classifications.
Consolidated Statement of Earnings
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January 30,
2004 January 30,
Year Ended On As Previously 2004
(In Millions, Except Per Share Data) Reported Adjustments As Restated
Expenses:
Selling, General and Administrative $ 5,543 $ 35 $ 5,578
Depreciation 758 19 777
Total Expenses 6,609 54 6,663
Pre-Tax Earnings 2,998 (54) 2,944
Income Tax Provision 1,136 (21) 1,115
Earnings from Continuing Operations 1,862 (33) 1,829
Net Earnings $ 1,877 $ (33) $ 1,844
Basic Earnings Per Share (Notes 1 and 11)
Continuing Operations $ 2.37 $ (0.04) $ 2.33
Discontinued Operations 0.02 – 0.02
Basic Earnings Per Share $ 2.39 $ (0.04) $ 2.35
Diluted Earnings Per Share (Notes 1 and 11)
Continuing Operations $ 2.30 $ (0.04) $ 2.26
Discontinued Operations 0.02 – 0.02
Diluted Earnings Per Share $ 2.32 $ (0.04) $ 2.28
Consolidated Statement of Earnings
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January 31,
2003 January 31,
Year Ended On As Previously 2003
(In Millions, Except Per Share Data) Reported Adjustments As Restated
Expenses:
Selling, General and Administrative $ 4,676 $ (51) $ 4,625
Depreciation 622 18 640
Total Expenses 5,609 (33) 5,576
Pre-Tax Earnings 2,339 33 2,372
Income Tax Provision 880 13 893
Earnings from Continuing Operations 1,459 20 1,479
Net Earnings $ 1,471 $ 20 $ 1,491
Basic Earnings Per Share (Notes 1 and 11)
Continuing Operations $ 1.87 $ 0.02 $ 1.89
Discontinued Operations 0.02 – 0.02
Basic Earnings Per Share $ 1.89 $ 0.02 $ 1.91
Diluted Earnings Per Share (Notes 1 and 11)
Continuing Operations $ 1.81 $ 0.03 $ 1.84
Discontinued Operations 0.02 – 0.02
Diluted Earnings Per Share $ 1.83 $ 0.03 $ 1.86
Consolidated Statement of Shareholders’ Equity
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February 1,
2002 February 1,
As Previously 2002
(In Millions) Reported Adjustments As Restated
Retained Earnings $ 4,482 $ (90) $ 4,392
Additionally, the Company’s auction rate securities are included in
short-term investments due to recent interpretations that make this
classification more appropriate than the previous years’ classification
as cash equivalents. The amount reclassified was $533 million at
January 30, 2004. The impact on cash flows from investing activities
resulting from this reclassification was a decrease of $53 million in
2003 and an increase of $75 million in 2002. There was no impact on
total cash flows in 2003 or 2002.
NOTE 3 Discontinued operations
During the fourth quarter of 2003, the Company sold 26 commodity-
focused locations operating under The Contractor Yard name (the
“Contractor Yards”). This sale was effected to allow the Company to
continue to focus on its retail and commercial business. The Company
has reported the results of operations of the Contractor Yards as dis-
continued operations for 2003 and 2002. Total net assets included in
the disposal group and sold as of January 30, 2004 were approximate-
ly $111 million and consisted primarily of $47 million in net accounts
receivable, $37 million in merchandise inventory and $27 million in
property, less accumulated depreciation.
The results of operations of the Contractor Yards included in
discontinued operations were as follows:
Years Ended On
January 30, January 31,
(In Millions) 2004 2003
Net Sales from Discontinued Operations $ 425 $ 379
Pre-Tax Earnings from Discontinued Operations 20 20
Gain on Sale of Contractor Yards 5 –
Income Tax Provision 10 8
Earnings from Discontinued Operations,
Net of Tax $ 15 $ 12