Lowe's 2015 Annual Report Download - page 73

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64
2. Financial Statement Schedule
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
(In Millions)
Balance at
beginning of
period
Charges to
costs
and expenses
Deductions
Balance at
end of period
January 29, 2016:
Reserve for loss on obsolete inventory
$
52
$
—
$
(6
)
1
$
46
Reserve for inventory shrinkage
162
345
(336
)
2
171
Reserve for sales returns
65
1
3
—
66
Deferred tax valuation allowance
170
277
4
—
447
Self-insurance liabilities
905
1,357
(1,379
)
5
883
Reserve for exit activities
53
34
(20
)
6
67
January 30, 2015:
Reserve for loss on obsolete inventory
$
68
$
—
$
(16
)
1
$
52
Reserve for inventory shrinkage
158
326
(322
)
2
162
Reserve for sales returns
58
7
3
—
65
Deferred tax valuation allowance
164
6
4
—
170
Self-insurance liabilities
904
1,323
(1,322
)
5
905
Reserve for exit activities
54
14
(15
)
6
53
January 31, 2014:
Reserve for loss on obsolete inventory
$
57
$
11
1
$
—
$
68
Reserve for inventory shrinkage
142
325
(309
)
2
158
Reserve for sales returns
59
—
(1
)
3
58
Deferred tax valuation allowance
142
22
4
—
164
Self-insurance liabilities
899
1,164
(1,159
)
5
904
Reserve for exit activities
75
11
(32
)
6
54
1 Represents the net increase/(decrease) in the required reserve based on the Company’s evaluation of obsolete inventory.
2 Represents the actual inventory shrinkage experienced at the time of physical inventories.
3 Represents the net increase/(decrease) in the required reserve based on the Company’s evaluation of anticipated
merchandise returns.
4 Represents an increase in the required reserve based on the Company’s evaluation of deferred tax assets.
5 Represents claim payments for self-insured claims.
6 Represents lease payments, net of sublease income.