Lowe's 2014 Annual Report Download - page 59

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NOTE 4: Property and Accumulated Depreciation
Property is summarized by major class in the following table:
(In millions)
Estimated
Depreciable
Lives
,
In Years
January 30,
2015
January 31,
2014
Cost:
Land N/A $ 7,040 $ 7,016
Buildings and building improvements 5-40 17,247
17,161
Equipment 3-15 10,426
10,063
Construction in progress N/A 730
834
Tot al co st
35,443
35,074
Accumulated depreciation (15,409 ) (14,240 )
Property, less accumulated depreciation
$ 20,034 $ 20,834
Included in net property are assets under capital lease of $744 million, less accumulated depreciation of $494 million, at
January 30, 2015, and $732 million, less accumulated depreciation of $455 million, at January 31, 2014. The related
amortization expense for assets under capital lease is included in depreciation expense.
NOTE 5: Exit Activities
When locations under operating leases are closed, the Company recognizes a liability for the fair value of future contractual
obligations, including future minimum lease payments, property taxes, utilities, common area maintenance and other ongoing
expenses, net of estimated sublease income and other recoverable items. During 2014, the Company did not close or relocate
any stores subject to operating leases. In 2013, the Company relocated two stores subject to operating leases.
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 2014 and 2013 are
summarized as follows:
(In millions) 2014 2013
Accrual for exit activities, balance at beginning of year $ 54
$ 75
Additions to the accrual - net 14
11
Cash payments (15 ) (32)
Accrual for exit activities, balance at end of year $ 53
$ 54
49
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