Lowe's Companies (LOW) 10-Q 2016 Q2 Quarterly report

Exhibit 12.1

Lowe’s Companies, Inc.

Statement Re Computation of Ratio of Earnings to Fixed Charges

In Millions, Except Ratio Data

	Six Months Ended				Fiscal Years Ended On
	July 29, 2016		July 31, 2015		January 29, 2016 4		January 30, 2015		January 31, 2014		February 1, 2013		February 3, 2012
Earnings:
Earnings Before Income Taxes	$	3,315	$	2,937	$	4,419	$	4,276	$	3,673	$	3,137	$	2,906
Fixed Charges	414		349		720		677		623		605		524
Capitalized Interest 1	5		5		9		9		8		6		—
Adjusted Earnings	$	3,734	$	3,291	$	5,148	$	4,962	$	4,304	$	3,748	$	3,430
Fixed Charges:
Interest Expense 2	$	328	$	270	$	559	$	525	$	478	$	463	$	385
Rental Expense 3	86		79		161		152		145		142		139
Total Fixed Charges	$	414	$	349	$	720	$	677	$	623	$	605	$	524
Ratio of Earnings to Fixed Charges	9.0		9.4		7.1		7.3		6.9		6.2		6.5

¹  Includes the net of subtractions for interest capitalized and additions for amortization of previously-capitalized interest.

²  Interest accrued on uncertain tax positions is excluded from Interest Expense in the computation of Fixed Charges.

³  The portion of rental expense that is representative of the interest factor in these rentals.

⁴  Earnings for the fiscal year ended January 29, 2016 included a $530 million non-cash impairment charge related to the investment in the Australia joint venture with Woolworths Limited. Excluding this charge from the calculation would result in a ratio of earnings to fixed charges of 7.9 for the fiscal year ended January 29, 2016.