Lowe's 2012 Annual Report Download - page 60

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46
NOTE 7: Long-Term Debt
Debt Category
(In millions)
Weighted-Average
Interest Rate a
t
February 1,
2013
February 1,
2013
February 3,
2012
Secured debt:1
Mortgage notes due through fiscal 2027 ........................... 5.94 % $ 19 $ 20
Unsecured debt:
N
otes due through fiscal 2017 .......................................... 3.88% 2,269 2,319
N
otes due fiscal 2018-2022 .............................................. 3.77% 2,280 1,532
N
otes due fiscal 2023-2027 .............................................. 7.34% 117 117
N
otes due fiscal 2028-2032 .............................................. 6.66% 695 695
N
otes due fiscal 2033-20372 ............................................. 6.06% 1,535 1,534
N
otes due fiscal 2038-2042 .............................................. 5.11% 1,731 991
Capitalized lease obligations due through fiscal 2035 ...... 431 419
Total long-term debt ....................................................... 9,077 7,627
Less current maturities ...................................................... (47) (592)
Long-term debt, excluding current maturities............. $ 9,030 $ 7,035
1 Real properties with an aggregate book value of $66 million were pledged as collateral at February 1, 2013, for secured
debt.
2 Amount includes $100 million of notes issued in 1997 that may be put at the option of the holder on the 20th anniversary
of the issue at par value. None of these notes are currently puttable.
Debt maturities, exclusive of unamortized original issue discounts and capitalized lease obligations, for the next five years
and thereafter are as follows: 2013, $2 million; 2014, $2 million; 2015, $508 million; 2016, $1.0 billion; 2017, $751
million; thereafter, $6.4 billion.
The Company’s unsecured notes are issued under indentures that have generally similar terms and therefore have been
grouped by maturity date for presentation purposes in the table above. The notes contain certain restrictive covenants, none
of which is expected to impact the Company’s capital resources or liquidity. The Company was in compliance with all
covenants of these agreements at February 1, 2013.
In April 2010, the Company issued $1.0 billion of unsecured notes in two tranches: $500 million of 4.625% notes maturing
in April 2020 and $500 million of 5.8% notes maturing in April 2040. The 2020 and 2040 notes were issued at discounts of
approximately $3 million and $5 million, respectively. Interest on the notes is payable semiannually in arrears in April and
October of each year until maturity.
In November 2010, the Company issued $1.0 billion of unsecured notes in two tranches: $475 million of 2.125% notes
maturing in April 2016 and $525 million of 3.75% notes maturing in April 2021. The 2016 and 2021 notes were issued at
discounts of approximately $2 million and $3 million, respectively. Interest on these notes is payable semiannually in
arrears in April and October of each year until maturity.
In November 2011, the Company issued $1.0 billion of unsecured notes in two tranches: $500 million of 3.8% notes
maturing in 2021 and $500 million of 5.125% notes maturing in 2041. The 2021 and 2041 notes were issued at discounts of
approximately $3 million and $5 million, respectively. Interest on these notes is payable semiannually in arrears in May
and November of each year until maturity, beginning in May 2012.
In April 2012, the Company issued $2.0 billion of unsecured notes in three tranches: $500 million of 1.625% notes
maturing in April 2017, $750 million of 3.12% notes maturing in April 2022 and $750 million of 4.65% notes maturing in
April 2042. The 2017, 2022 and 2042 notes were issued at discounts of approximately $2 million, $4 million and $10
million, respectively. Interest on these notes is payable semiannually in arrears in April and October of each year until
maturity, beginning in October 2012.