Lowe's 2013 Annual Report Download - page 31

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We have an ongoing share repurchase program that is executed through purchases made from time to time either in the open
market or through private off-market transactions. Shares purchased under the repurchase program are retired and returned to
authorized and unissued status. On February 1, 2013, the Company's Board of Directors authorized a $5.0 billion share
repurchase program with no expiration. As of January 31, 2014, the Company had $1.3 billion remaining available under this
authorization. On January 31, 2014, the Company's Board of Directors authorized an additional $5.0 billion of share
repurchases with no expiration, increasing the total share repurchases authorized as of fiscal year end January 31, 2014 to $6.3
billion. In fiscal 2014, the Company expects to repurchase shares totaling $3.4 billion through purchases made from time to
time either in the open market or through private off market transactions in accordance with SEC regulations.
Our ratio of debt to equity plus debt was 47.0% and 39.6% as of January 31, 2014, and February 1, 2013, respectively.
OFF-BALANCE SHEET ARRANGEMENTS
Other than in connection with executing operating leases, we do not have any off-balance sheet financing that has, or is
reasonably likely to have, a material, current or future effect on our financial condition, cash flows, results of operations,
liquidity, capital expenditures or capital resources.
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
The following table summarizes our significant contractual obligations at January 31, 2014:
Payments Due by Period
Contractual Obligations
Less Than
1-3
4-5
After 5
(In millions)
Total
1 Year
Years
Years
Years
Long-term debt (principal amounts,
excluding discount)
$
9,700
$
2
$
1,536
$
751
$
7,411
Long-term debt (interest payments)
7,338
459
887
759
5,233
Capitalized lease obligations 1
786
88
147
108
443
Operating leases 1
5,588
447
887
843
3,411
Purchase obligations 2
881
577
297
7
—
Total contractual obligations
$
24,293
$
1,573
$
3,754
$
2,468
$
16,498
Amount of Commitment Expiration by Period
Commercial Commitments
Less Than
1-3
4-5
After 5
(in millions)
Total
1 Year
Years
Years
Years
Letters of Credit 3
$
64
$
62
$
2
$
—
$
—
1 Amounts do not include taxes, common area maintenance, insurance or contingent rent because these amounts have
historically been insignificant.
2 Represents commitments related to certain marketing and information technology programs, and purchases of merchandise
inventory.
3 Letters of credit are issued primarily for insurance and construction contracts.
At January 31, 2014, our reserve for uncertain tax positions (including penalties and interest) was $69 million, of which $7
million was classified as a current liability and $62 million was classified as a noncurrent liability. At this time, we are unable
to make a reasonably reliable estimate of the timing of payments in individual years beyond 12 months due to uncertainties in
the timing of the effective settlement of tax positions.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of the consolidated financial statements and notes to consolidated financial statements presented in this Form
10-K requires us to make estimates that affect the reported amounts of assets, liabilities, sales and expenses, and related
disclosures of contingent assets and liabilities. We base these estimates on historical results and various other assumptions
believed to be reasonable, all of which form the basis for making estimates concerning the carrying values of assets and
liabilities that are not readily available from other sources. Actual results may differ from these estimates.