Lowe's 2013 Annual Report Download - page 55

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Subsequent changes to the liabilities, including a change resulting from a revision to either the timing or the amount of
estimated cash flows, are recognized in the period of change. Changes to the accrual for exit activities for 2013 and 2012 are
summarized as follows:
(In millions)
2013
2012
Accrual for exit activities, balance at beginning of year
$
75
$
86
Additions to the accrual - net
11
11
Cash payments
(32
)
(22
)
Accrual for exit activities, balance at end of year
$
54
$
75
NOTE 7: Short-Term Borrowings and Lines of Credit
The Company has a $1.75 billion senior credit facility that expires in October 2016. The senior credit facility supports the
Company’s commercial paper program and has a $500 million letter of credit sublimit. Letters of credit issued pursuant to the
senior credit facility reduce the amount available for borrowing under its terms. Borrowings made are unsecured and are priced
at fixed rates based upon market conditions at the time of funding in accordance with the terms of the senior credit facility. The
senior credit facility contains certain restrictive covenants, which include maintenance of a debt leverage ratio as defined by the
senior credit facility. The Company was in compliance with those covenants as of January 31, 2014. Thirteen banking
institutions are participating in the senior credit facility. As of January 31, 2014, there were $386 million of outstanding
borrowings under the commercial paper program with a weighted average interest rate of 0.20%, but there were no outstanding
borrowings or letters of credit under the senior credit facility. As of February 1, 2013, there were no outstanding borrowings or
letters of credit under the senior credit facility and no outstanding borrowings under the Company’s commercial paper program.
NOTE 8: Long-Term Debt
Debt Category
(In millions)
Weighted-Average
Interest Rate at
January 31, 2014
January 31, 2014
February 1, 2013
Secured debt:1
Mortgage notes due through fiscal 2027
5.80
%
$
17
$
19
Unsecured debt:
Notes due through fiscal 2018
3.88
%
2,271
2,269
Notes due fiscal 2019-2023
3.79
%
2,776
2,280
Notes due fiscal 2024-2028
7.01
%
416
415
Notes due fiscal 2029-2033
6.50
%
397
397
Notes due fiscal 2034-20382
6.06
%
1,535
1,535
Notes due fiscal 2039-2043
5.09
%
2,222
1,731
Capitalized lease obligations due through fiscal 2035
501
431
Total long-term debt
10,135
9,077
Less current maturities
(49
)
(47
)
Long-term debt, excluding current maturities
$
10,086
$
9,030
1 Real properties with an aggregate book value of $64 million were pledged as collateral at January 31, 2014, 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: 2014, $2 million; 2015, $508 million; 2016, $1.0 billion; 2017, $750 million; 2018, $1 million;
thereafter, $7.4 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