Lowe's 2010 Annual Report Download - page 50

46 LOWE’S 2010 ANNUAL REPORT
As of January 28, 2011, the Company had non-cancelable
commitments฀of฀$633฀million฀related฀to฀certain฀marketing฀and฀
information technology programs, and purchases of merchandise
inventory. Payments under these commitments are scheduled to
be฀made฀as฀follows:฀2011,฀$386฀million;฀2012,฀$175฀million;฀2013,฀
$61฀million;฀2014,฀$9฀million;฀2015,฀$1฀million;฀thereafter,฀$1฀million.฀
The Company held standby and documentary letters of credit
issued฀under฀banking฀arrangements฀which฀totaled฀$19฀million฀as฀of฀
January 28, 2011. The majority of the Company’s letters of credits
were issued for real estate and construction contracts. Payments
under these arrangements are scheduled to be made as follows:
2011,฀$18฀million;฀2012,฀$1฀million.฀Commitment฀fees฀ranging฀from฀
.225% to 1.000% per annum are paid on the letters of credit
amounts outstanding.
During 2009, the Company entered into a joint venture agreement
with Australian retailer Woolworths Limited, to develop a chain of home
improvement stores in Australia. Under the agreement, the Company
committed฀to฀contribute฀$400฀million฀to฀the฀joint฀venture,฀of฀which฀it฀
is฀a฀one-third฀owner.฀The฀contributions฀are฀expected฀to฀be฀relatively฀
consistent over a four-year period. As of January 28, 2011 the
Company฀has฀contributed฀approximately฀$140฀million.
NOTE 14 RELATED PARTIES
A฀brother-in-law฀of฀the฀Company’s฀Executive฀Vice฀President฀of฀Business฀
Development is a senior officer and shareholder of a vendor that
provides millwork and other building products to the Company. The
Company purchased products from this vendor in the amount of
$82฀million,฀$86฀million฀and฀$92฀million฀for฀2010,฀2009฀and฀2008,฀
respectively. Amounts payable to this vendor were insignificant at
January 28, 2011 and January 29, 2010.
NOTE 15 OTHER INFORMATION
Net฀interest฀expense฀is฀comprised฀of฀the฀following:
(In millions) 2010 2009 2008
Long-term฀debt฀ $312฀฀ $293฀฀ $292฀
Short-term borrowings – 2 11
Capitalized lease obligations 35 32 31
Interest income (12) (17) (40)
Interest capitalized (14) (19) (36)
Interest฀on฀tax฀uncertainties฀ ฀฀7฀฀ ฀฀(9)฀ ฀10฀
Other 4 5 12
Interest – net $332 $287 $280
Supplemental฀disclosures฀of฀cash฀ow฀information:
(In millions) 2010 2009 2008
Cash paid for interest,
฀ net฀of฀amount฀capitalized฀ $฀ ฀฀฀319฀฀ $฀ ฀฀฀314฀฀ $฀ ฀฀309฀
Cash฀paid฀for฀income฀taxes,฀net฀ $1,590฀฀ $1,157฀฀ $1,138฀
Non-cash investing and
financing activities:
Non-cash property acquisitions,
including assets acquired
฀ under฀capital฀lease฀ $฀ ฀ 56฀฀ $฀ ฀ 69฀฀ $฀ ฀฀฀124฀
Change in equity method
฀ investments฀ $฀ ฀ ฀฀฀฀(4)฀ $฀ ฀ ฀฀(4)฀ $฀ ฀฀(15)
Conversions of long-term
฀ debt฀to฀equity฀ $฀ ฀ ฀ ฀฀–฀ $฀ ฀ –฀ $฀ ฀ 1฀
Cash dividends declared
฀ but฀not฀paid฀ $฀ ฀ 148฀฀ $฀ ฀฀฀131฀฀ $฀ ฀ –
Sales by Product Category:
(Dollars in millions) 2010 2009 2008
Product Total Total Total
Category Sales % Sales % Sales %
Appliances฀ $฀ 5,365฀฀ 11%฀ $฀ 4,904฀฀ 10%฀ $฀ 4,752฀฀ 10%
Lumber 3,402 7 3,242 7 3,506 7
Paint 3,003 6 2,913 6 2,791 6
Millwork 2,884 6 2,786 6 2,965 6
Building materials 2,879 6 2,924 6 2,966 6
Lawn฀&฀landscape฀
products 2,812 6 2,690 6 2,585 5
Flooring 2,779 6 2,765 6 2,879 6
Rough plumbing 2,709 6 2,659 6 2,618 6
Seasonal living 2,654 5 2,413 5 2,449 5
Tools 2,604 5 2,439 5 2,563 5
Hardware 2,526 5 2,497 5 2,516 5
Fashion plumbing 2,433 5 2,475 5 2,573 5
Lighting 2,396 5 2,407 5 2,508 5
Nursery 1,962 4 1,942 4 1,850 4
Outdoor power
equipment 1,932 4 1,834 4 1,963 4
Cabinets฀&฀
countertops 1,700 3 1,715 4 1,935 4
Home organization 1,695 3 1,662 3 1,662 4
Rough electrical 1,409 3 1,316 3 1,446 3
Home fashion 1,337 3 1,309 3 1,408 3
Other 334 1 328 1 295 1
Totals $ 48,815 100% $ 47,220 100% $ 48,230 100%