Lowe's 2015 Annual Report Download - page 6

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4
Dollars in millions, except per share data 2015 2014 2013
Net sales $ 59,074 $ 56,223 $ 53,417
Gross margin 34.82% 34.79% 34.59%
Adjusted EBIT margin
1,2
9.31% 8.53% 7.77%
Adjusted net earnings (% to sales)
2
5.21% 4.80% 4.28%
Adjusted diluted earnings per common share
2
$ 3.29 $ 2.71 $ 2.14
Cash dividends per share $ 1.07 $ 0.87 $ 0.70
Total assets $ 31,266 $ 31,721 $ 32,471
Shareholders’ equity $ 7,654 $ 9,968 $ 11,853
Net cash provided by operating activities $ 4,784 $ 4,929 $ 4,111
Capital expenditures $ 1,197 $ 880 $ 940
Comparable sales increase
3
4.8% 4.3% 4.8%
Total customer transactions (in millions) 878 857 828
Average ticket
4
$ 67.26 $ 65.61 $ 64.52
Selling square feet (in millions) 202 201 200
Return on invested capital
5
14.1% 13.9% 11.5%
1 EBIT margin, also referred to as operating margin, is defined as earnings before interest and taxes as a percentage of sales.
2 Adjusted EBIT margin, Adjusted net earnings and Adjusted diluted earnings per common share are non-GAAP financial measures. Refer to the
Management’s Discussion and Analysis section of our Annual Report of Form 10-K for additional information as well as reconciliations between
the Company’s GAAP and non-GAAP financial results.
3 Please see the Management’s Discussion and Analysis section of our Annual Report on Form 10-K for the definition and calculation of a
comparable location.
4 Average ticket is defined as net sales divided by the total number of customer transactions.
5 Return on invested capital (ROIC) is a non-GAAP financial measure. Please see the Management’s Discussion and Analysis section of our Annual
Report on Form 10-K for the definition of ROIC and a reconciliation of ROIC for the periods presented to the most directly comparable GAAP
measure. In 2015, the Company recognized a $530 million non-cash impairment charge in connection with the Company’s decision to exit its joint
venture with Woolworths Limited in Australia, which negatively impacted ROIC by 238 basis points.
6 Sales per selling square foot is defined as sales divided by the average of beginning and ending selling square feet.
Financial Highlights:
LOWE’S COMPANIES, INC.
Sales per Selling
Square Foot6
(in dollars)
’15
’14’13
’12’11
0
50
100
150
200
250
$300
Adjusted EBIT Margin1, 2
(in percent)
0
2.0
4.0
6.0
8.0
10.0%
’12 ’15
’14’13
’11
0
0.50
1.00
2.00
2.50
$3.50
3.00
Adjusted Diluted Earnings
per Common Share2
(in dollars)
1.50
’12 ’15
’14’13
’11
0
3
6
9
12
15%
Return on
Invested Capital5
(in percent)
’12
’15
’14’13
’11
Fiscal year 2011 contained 53 weeks. All other fiscal years presented contained 52 weeks.