Lowe's 2015 Annual Report Download - page 67

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58
Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by
the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated
by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance
sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles
earnings per common share for 2015, 2014 and 2013:
(In millions, except per share data)
2015
2014
2013
Basic earnings per common share:
Net earnings
$
2,546
$
2,698
$
2,286
Less: Net earnings allocable to participating securities
(12
)
(16
)
(16
)
Net earnings allocable to common shares, basic
$
2,534
$
2,682
$
2,270
Weighted-average common shares outstanding
927
988
1,059
Basic earnings per common share
$
2.73
$
2.71
$
2.14
Diluted earnings per common share:
Net earnings
$
2,546
$
2,698
$
2,286
Less: Net earnings allocable to participating securities
(12
)
(16
)
(16
)
Net earnings allocable to common shares, diluted
$
2,534
$
2,682
$
2,270
Weighted-average common shares outstanding
927
988
1,059
Dilutive effect of non-participating share-based awards
2
2
2
Weighted-average common shares, as adjusted
929
990
1,061
Diluted earnings per common share
$
2.73
$
2.71
$
2.14
Stock options to purchase 0.3 million, 0.6 million and 1.9 million shares of common stock for 2015, 2014 and 2013,
respectively, were excluded from the computation of diluted earnings per common share because their effect would have been
anti-dilutive.
NOTE 12: Leases
The Company leases facilities and land for certain facilities under agreements with original terms generally of 20 years. The
leases generally contain provisions for four to six renewal options of five years each. Some lease agreements also provide for
contingent rentals based on sales performance in excess of specified minimums or on changes in the consumer price
index. Contingent rentals were not significant for any of the periods presented. The Company subleases certain properties that
are not used in its operations. Sublease income was not significant for any of the periods presented.
The future minimum rental payments required under operating leases and capitalized lease obligations having initial or
remaining non-cancelable lease terms in excess of one year are summarized as follows:
(In millions)
Fiscal Year
Operating
Leases
Capitalized
Lease
Obligations
Tota l
2016
$
494
$
76
$
570
2017
489
65
554
2018
470
62
532
2019
440
60
500
2020
415
58
473
Later years
3,086
670
3,756
Total minimum lease payments
$
5,394
$
991
$
6,385
Less amount representing interest
(465
)
Present value of minimum lease payments
526
Less current maturities
(34
)
Present value of minimum lease payments, less current maturities
$
492