Lowe's 2014 Annual Report Download - page 34

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Cash Requirements
Capital expenditures
Our fiscal 2015 capital forecast is approximately $1.4 billion, inclusive of approximately $200 million of lease commitments,
resulting in a planned net cash outflow of $1.2 billion. Investments in our existing stores are expected to account for
approximately 40% of net cash outflow, including investments in store equipment, resets, and remerchandising. Approximately
30% of the planned net cash outflow is for corporate programs, including investments to enhance the customer experience, as
well as enhancements to the corporate infrastructure. In addition, approximately 30% of the planned net cash outflow is for
store expansion. Our expansion plans for 2015 consist of 15 to 20 new home improvement and hardware stores, approximately
half of which will be leased.
Debt and capital
In September 2014, the Company issued $1.25 billion of unsecured notes in three tranches: $450 million of floating rate notes
maturing in September 2019, $450 million of 3.125% notes maturing in September 2024, and $350 million of 4.25% notes
maturing in September 2044. The 2019, 2024, and 2044 Notes were issued at discounts of approximately $2 million, $6
million, and $4 million, respectively. The 2019 Notes will bear interest at a floating rate, reset quarterly, equal to the three-
month LIBOR plus 0.420% (0.658% as of January 30, 2015). Interest on the 2019 Notes is payable quarterly in arrears in
March, June, September, and December of each year until maturity, beginning in December 2014. Interest on the 2024 and
2044 Notes is payable semiannually in arrears in March and September of each year until maturity, beginning in March 2015.
The discounts associated with these issuances, which include the underwriting and issuance discounts, are recorded in long-
term debt and are being amortized over the respective terms of the notes.
Dividends declared during fiscal 2014 totaled $858 million. Our dividend payment dates are established such that dividends
are paid in the quarter immediately following the quarter in which they are declared. The dividend declared in the fourth
quarter of 2014 was paid in fiscal 2015 and totaled $222 million.
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 January 31, 2014, the Company's Board of Directors authorized a $5.0 billion share
repurchase program with no expiration. As of January 30, 2015, the Company had $2.4 billion remaining available under this
authorization with no expiration date. On March 20, 2015, the Company's Board of Directors authorized an additional $5.0
billion share repurchase program with no expiration. In fiscal 2015, the Company expects to repurchase shares totaling $3.8
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 53.3% and 47.0% as of January 30, 2015, and January 31, 2014, 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.
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