Lowe's Companies (LOW) 10-Q 5 Jun 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 04, 2018	Jun. 01, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	LOWES COMPANIES INC
Entity Central Index Key	60,667
Document Type	10-Q
Document Period End Date	May 4, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--02-01
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		816,153,978

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	May 04, 2018	Feb. 02, 2018	May 05, 2017
Current assets:
Cash and cash equivalents	$ 1,565	$ 588	$ 1,963
Short-term investments	205	102	84
Merchandise inventory - net	13,204	11,393	12,254
Other current assets	1,059	689	975
Total current assets	16,033	12,772	15,276
Property, less accumulated depreciation	19,500	19,721	19,748
Long-term investments	321	408	477
Deferred income taxes - net	199	168	272
Goodwill	1,288	1,307	1,081
Other assets	896	915	759
Total assets	38,237	35,291	37,613
Current liabilities:
Short-term borrowings	0	1,137	0
Current maturities of long-term debt	896	294	295
Accounts payable	10,104	6,590	9,905
Accrued compensation and employee benefits	715	747	725
Deferred revenue	1,439	1,378	1,415
Other current liabilities	2,620	1,950	2,346
Total current liabilities	15,774	12,096	14,686
Long-term debt, excluding current maturities	14,948	15,564	15,770
Deferred revenue - extended protection plans	808	803	769
Other liabilities	962	955	857
Total liabilities	32,492	29,418	32,082
Shareholders' equity:
Preferred stock - $5 par value, none issued	0	0	0
Common stock - $0.50 par value; Shares issued and outstanding 822 at May 4, 2018, 853 at May 5, 2017, and 830 at February 2, 2018	411	415	426
Capital in excess of par value	0	22	0
Retained earnings	5,405	5,425	5,346
Accumulated other comprehensive income/(loss)	(71)	11	(241)
Total shareholders' equity	5,745	5,873	5,531
Total liabilities and shareholders' equity	$ 38,237	$ 35,291	$ 37,613

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	May 04, 2018	Feb. 02, 2018	May 05, 2017
Shareholders' equity:
Preferred stock, par value	$ 5	$ 5	$ 5
Preferred stock, shares issued	0	0	0
Common stock, par value	$ 0.50	$ 0.50	$ 0.50
Common stock, shares issued	822,000,000	830,000,000	853,000,000
Common stock, shares outstanding	822,000,000	830,000,000	853,000,000

Consolidated Statements of Curr

Consolidated Statements of Current and Retained Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Current Earnings
Net sales	$ 17,360	$ 16,860
Cost of sales	11,348	11,060
Gross margin	6,012	5,800
Expenses:
Selling, general and administrative	4,187	3,876
Depreciation and amortization	360	365
Operating income	1,465	1,559
Interest - net	160	161
Loss on extinguishment of debt	0	464
Pre-tax earnings	1,305	934
Income tax provision	317	332
Net earnings	$ 988	$ 602
Weighted-average common shares outstanding - basic	825	857
Basic earnings per common share	$ 1.19	$ 0.70
Weighted-average common shares outstanding - diluted	826	858
Diluted earnings per common share	$ 1.19	$ 0.70
Cash dividends per share	$ 0.41	$ 0.35
Retained Earnings
Beginning balance	$ 5,425	$ 6,241
Cumulative effect of accounting change	33	0
Net earnings	988	602
Cash dividends declared	(338)	(299)
Share repurchases	(703)	(1,198)
Balance at end of period	$ 5,405	$ 5,346

Consolidated Statements of Cur5

Consolidated Statements of Current and Retained Earnings (Percents) (Unaudited)	3 Months Ended
	May 04, 2018	May 05, 2017
Current Earnings
Net sales	100.00%	100.00%
Cost of sales	65.37%	65.60%
Gross margin	34.63%	34.40%
Expenses:
Selling, general and administrative	24.12%	22.99%
Depreciation and amortization	2.07%	2.16%
Operating income	8.44%	9.25%
Interest - net	0.92%	0.96%
Loss on extinguishment of debt	0.00%	2.75%
Pre-tax earnings	7.52%	5.54%
Income tax provision	1.83%	1.97%
Net earnings	5.69%	3.57%

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Comprehensive Income
Net earnings	$ 988	$ 602
Foreign currency translation adjustments - net of tax	(83)	(1)
Other comprehensive loss	(83)	(1)
Comprehensive income	$ 905	$ 601

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Percents) (Unaudited)	3 Months Ended
	May 04, 2018	May 05, 2017
Comprehensive Income
Net earnings	5.69%	3.57%
Foreign currency translation adjustments - net of tax	(0.48%)	0.00%
Other comprehensive loss	(0.48%)	0.00%
Comprehensive income	5.21%	3.57%

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Cash flows from operating activities:
Net earnings	$ 988	$ 602
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	387	389
Deferred income taxes	(21)	(64)
Loss on property and other assets - net	6	11
Loss on extinguishment of debt	0	464
Loss on cost method and equity method investments	0	7
Share-based payment expense	24	26
Changes in operating assets and liabilities:
Merchandise inventory - net	(1,846)	(1,808)
Other operating assets	(234)	(64)
Accounts payable	3,521	3,291
Other operating liabilities	604	441
Net cash provided by operating activities	3,429	3,295
Cash flows from investing activities:
Purchases of investments	(573)	(153)
Proceeds from sale/maturity of investments	556	59
Capital expenditures	(224)	(202)
Proceeds from sale of property and other long-term assets	5	6
Other - net	0	(1)
Net cash used in investing activities	(236)	(291)
Cash flows from financing activities:
Net change in short-term borrowings	(1,140)	(511)
Net proceeds from issuance of long-term debt	0	2,968
Repayment of long-term debt	(13)	(2,558)
Proceeds from issuance of common stock under share-based payment plans	8	38
Cash dividend payments	(340)	(304)
Repurchase of common stock	(728)	(1,237)
Other - net	(2)	(1)
Net cash used in financing activities	(2,215)	(1,605)
Effect of exchange rate changes on cash	(1)	6
Net increase in cash and cash equivalents	977	1,405
Cash and cash equivalents, beginning of period	588	558
Cash and cash equivalents, end of period	$ 1,565	$ 1,963

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	May 04, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1 : Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). During the first quarter of fiscal year 2018, the Company conformed the financial reporting calendar of a subsidiary, which did not have a significant effect on the consolidated financial statements. The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of May 4, 2018 , and May 5, 2017 , and the results of operations and comprehensive income for the three months ended May 4, 2018 , and May 5, 2017 , and cash flows for the three months ended May 4, 2018 and May 5, 2017 . These interim consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe’s Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended February 2, 2018 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Accounting Pronouncements Recently Adopted Effective February 3, 2018, the Company adopted Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606) , and all the related amendments, using the modified retrospective method. ASU 2014-09 requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Upon adoption of ASU 2014-09, the Company recorded an immaterial adjustment to the opening balance of retained earnings as of February 3, 2018, with related adjustments to deferred revenue, accounts payable and related tax effects. The adjustment to retained earnings primarily relates to the change in revenue recognition related to gift card breakage. The adoption of the guidance also required a change in the timing of how installation services are recognized, the presentation of sales return reserve on the consolidated balance sheet, and a change in the presentation of the Company’s profit sharing income from its proprietary credit program. We applied ASU 2014-09 only to contracts that were not completed prior to fiscal 2018. Results for reporting periods beginning after February 2, 2018 are presented under ASU 2014-09, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods. See Note 2 for additional details of the Company’s revenues. The impact of adopting the new revenue recognition guidance on our consolidated statement of earnings is as follows: Three Months Ended May 4, 2018 Consolidated Statements of Earnings (in millions) As Reported Under Historical Guidance Impact of Adopting ASU 2014-09 Net sales $ 17,360 $ 17,231 $ 129 Cost of sales 11,348 11,364 (16 ) Gross margin 6,012 5,867 145 Selling, general and administrative 4,187 4,043 144 Operating income 1,465 1,464 1 Pre-tax earnings 1,305 1,304 1 Net earnings $ 988 $ 987 $ 1 The impacts of adopting the new revenue recognition guidance to assets and liabilities on our consolidated balance sheets are as follows: Balance at May 4, 2018 Consolidated Balance Sheets (in millions) As Reported Under Historical Guidance Impact of Adopting ASU 2014-09 Assets Other current assets $ 1,059 $ 862 $ 197 Liabilities Accounts payable 10,104 10,092 12 Deferred revenue 1,439 1,517 (78 ) Other current liabilities 2,620 2,406 214 Accounting Pronouncements Not Yet Adopted In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The ASU eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation to the identified assets and liabilities of the reporting unit to measure goodwill impairment. Under the amendments in this update, a goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements but expects the ASU to have a material impact on its consolidated balance sheets, as a result of the requirement to recognize right-of-use assets and lease liabilities.

Net Sales

Net Sales	3 Months Ended
	May 04, 2018
Net Sales
Net Sales	Note 2 : Net Sales Net sales consists primarily of revenue, net of sales tax, associated with contracts with customers for the sale of goods and services in amounts that reflect consideration the Company is entitled to in exchange for those goods and services. The following table presents the Company’s sources of revenue: (In millions) Three Months Ended May 4, 2018 May 5, 2017 Products $ 16,501 $ 16,220 Services 624 585 Other 235 55 Net sales $ 17,360 $ 16,860 Revenue from products primarily relates to in-store and online merchandise purchases, which are recognized at the point in time when the customer obtains control of the merchandise, which is at the time of in-store purchase or delivery of the product to the customer. A provision for anticipated merchandise returns is provided through a reduction of sales and cost of sales in the period that the related sales are recorded. Under ASU 2014-09, the merchandise return reserve is presented on a gross basis, with a separate asset and liability included in the consolidated balance sheets as of reporting periods after February 2, 2018 . Reporting periods prior to the adoption of ASU 2014-09 reflect merchandise return reserves on a net basis. As of May 4, 2018 , anticipated sales returns of $305 million are reflected in other current liabilities, and the associated right of return assets of $197 million are reflected in other current assets. As of May 5, 2017 , the merchandise return reserve, net of the associated asset, was $101 million reflected in other current liabilities. Revenues from services primarily relate to professional installation services the Company provides through subcontractors related to merchandise purchased by a customer. In certain instances, installation services include materials provided by the subcontractor, and both product and installation are included in service revenue. The Company recognizes revenue associated with services as they are rendered, and the majority of services are completed within one week from initiation. Deferred revenue is presented for merchandise that has not yet transferred control to the customer and for services that have not yet been provided, but for which tender has been accepted. Deferred revenue is recognized in sales either at a point in time when the customer obtains control of merchandise through pickup or delivery, or over time as services are provided to the customer. Deferred revenues associated with amounts received for which customers have not taken possession of the merchandise or for which installation has not yet been completed were $1.0 billion and $967 million at May 4, 2018 and May 5, 2017 , respectively. The majority of revenue for goods and services is recognized in the quarter following revenue deferral. Stored-value cards In addition, the Company defers revenues from stored-value cards, which include gift cards and returned merchandise credits, and recognizes revenue into sales when the cards are redeemed. The liability associated with outstanding stored-value cards was $437 million and $449 million at May 4, 2018 , and May 5, 2017 , respectively, and these amounts are included in deferred revenue on the consolidated balance sheets. Upon adoption of ASU 2014-09, the Company recognizes income from unredeemed stored-value cards in proportion to the pattern of rights exercised by the customer. Amounts recognized as breakage were insignificant for the three months ended May 4, 2018 and May 5, 2017 . Extended protection plans The Company also defers revenues for its separately-priced extended protection plan contracts, which is a Lowe’s-branded program for which the Company is ultimately self-insured. The Company recognizes revenue from extended protection plan sales on a straight-line basis over the respective contract term. Extended protection plan contract terms primarily range from one to five years from the date of purchase or the end of the manufacturer’s warranty, as applicable. Deferred revenue from extended protection plans recognized into sales were insignificant for the three months ending May 4, 2018 and May 5, 2017. Incremental direct acquisition costs associated with the sale of extended protection plans are also deferred and recognized as expense on a straight-line basis over the respective contract term and were insignificant at May 4, 2018 and May 5, 2017, respectively. The Company’s extended protection plan deferred costs are included in other assets (noncurrent) on the consolidated balance sheets. All other costs, such as costs of services performed under the contract, general and administrative expenses, and advertising expenses are expensed as incurred. The liability for extended protection plan claims incurred is included in other current liabilities on the consolidated balance sheets and was not material in any of the periods presented. Expenses for claims are recognized when incurred and totaled $46 million and $36 million for the three months ended May 4, 2018 and May 5, 2017 , respectively. Disaggregation of Revenues The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended May 4, 2018 May 5, 2017 (In millions) Total Sales % Total Sales % Home Décor 1 $ 7,009 40 % $ 6,752 40 % Building & Maintenance 2 6,797 39 6,484 38 Seasonal 3 3,223 19 3,472 21 Other 331 2 152 1 Total $ 17,360 100 % $ 16,860 100 % 1 Home Décor includes the following product categories: Appliances , Fashion Fixtures , Flooring , Kitchens , and Paint 2 Building & Maintenance includes the following product categories: Lumber & Building Materials , Millwork , Rough Plumbing & Electrical , and Tools & Hardware 3 Seasonal includes the following product categories: Lawn & Garden and Seasonal & Outdoor Living The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended May 4, 2018 May 5, 2017 United States $ 16,173 $ 15,868 International 1,187 992 Net Sales $ 17,360 $ 16,860 Practical Expedients Sales commissions and selling-related goods or services are considered immaterial and are expensed as incurred because the amortization period of the assets would be one year or less. These costs are reflected within selling, general and administrative expenses.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	May 04, 2018
Fair Value Measurements
Fair Value Measurements	Note 3 : Fair Value Measurements - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: • Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities • Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly • Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets measured at fair value on a recurring basis as of May 4, 2018 , May 5, 2017 , and February 2, 2018 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level May 4, 2018 May 5, 2017 February 2, 2018 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 188 $ 70 $ 86 Certificates of deposit Level 1 17 12 16 Municipal obligations Level 2 — 2 — Total short-term investments $ 205 $ 84 $ 102 Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 321 $ 472 $ 407 Certificates of deposit Level 1 — 3 1 Municipal obligations Level 2 — 2 — Total long-term investments $ 321 $ 477 $ 408 There were no transfers between Levels 1, 2 or 3 during any of the periods presented. When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, investments were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis During the three months ended May 4, 2018 and May 5, 2017 , the Company had no significant measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. Fair Value of Financial Instruments The Company’s financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable, accrued liabilities and long-term debt and are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature. The fair values of the Company’s unsecured notes were estimated using quoted market prices. The fair values of the Company’s mortgage notes were estimated using discounted cash flow analyses, based on the future cash outflows associated with these arrangements and discounted using the applicable incremental borrowing rate. Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease obligations, are as follows: May 4, 2018 May 5, 2017 February 2, 2018 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 14,963 $ 15,151 $ 15,203 $ 15,948 $ 14,961 $ 15,608 Mortgage notes (Level 2) 6 7 7 7 6 7 Long-term debt (excluding capitalized lease obligations) $ 14,969 $ 15,158 $ 15,210 $ 15,955 $ 14,967 $ 15,615

Restricted Investment Balances

Restricted Investment Balances	3 Months Ended
	May 04, 2018
Restricted Investment Balances
Restricted Investment Balances	Note 4 : Restricted Investment Balances - Short-term and long-term investments include restricted balances pledged as collateral primarily for the Company’s extended protection plan program. Restricted balances included in short-term investments were $188 million at May 4, 2018 , $70 million at May 5, 2017 , and $86 million at February 2, 2018 . Restricted balances included in long-term investments were $298 million at May 4, 2018 , $340 million at May 5, 2017 , and $381 million at February 2, 2018 .

Property

Property	3 Months Ended
	May 04, 2018
Property
Property	Note 5 : Property - Property is shown net of accumulated depreciation of $17.4 billion at May 4, 2018 , $16.9 billion at May 5, 2017 , and $17.2 billion at February 2, 2018 .

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	May 04, 2018
Shareholders' Equity
Shareholders' Equity	Note 6 : Shareholders’ Equity - The Company has a share repurchase program that is executed through purchases made from time to time either in the open market, which may be made under pre-set trading plans meeting the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934, or through private off-market transactions. Shares purchased under the repurchase program are retired and returned to authorized and unissued status. On January 27, 2017, the Company’s Board of Directors authorized a $5.0 billion share repurchase program with no expiration, which was announced on the same day. On January 26, 2018, the Company’s Board of Directors authorized an additional $5.0 billion share repurchase program with no expiration, which was announced on the same day. As of May 4, 2018 , the Company had $6.2 billion remaining in its share repurchase program. During the three months ended May 4, 2018 , the Company repurchased shares of its common stock through the open market totaling 8.7 million shares for a cost of $750 million . The Company also withholds shares from employees to satisfy either the exercise price of stock options exercised or the statutory withholding tax liability resulting from the vesting of share-based awards. Shares repurchased for the three months ended May 4, 2018 and May 5, 2017 were as follows: Three Months Ended May 4, 2018 May 5, 2017 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 8.7 $ 750 15.2 $ 1,250 Shares withheld from employees 0.1 8 0.2 14 Total share repurchases 8.8 $ 758 15.4 $ 1,264 1 Reductions of $703 million and $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 4, 2018 and May 5, 2017 , respectively.

Earnings Per Share

Earnings Per Share	3 Months Ended
	May 04, 2018
Earnings Per Share
Earnings Per Share	Note 7 : Earnings Per Share - The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and, therefore, are considered to participate in undistributed earnings with common shareholders. 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 the three months ended May 4, 2018 and May 5, 2017 : Three Months Ended (In millions, except per share data) May 4, 2018 May 5, 2017 Basic earnings per common share: Net earnings $ 988 $ 602 Less: Net earnings allocable to participating securities (3 ) (2 ) Net earnings allocable to common shares, basic $ 985 $ 600 Weighted-average common shares outstanding 825 857 Basic earnings per common share $ 1.19 $ 0.70 Diluted earnings per common share: Net earnings $ 988 $ 602 Less: Net earnings allocable to participating securities (3 ) (2 ) Net earnings allocable to common shares, diluted $ 985 $ 600 Weighted-average common shares outstanding 825 857 Dilutive effect of non-participating share-based awards 1 1 Weighted-average common shares, as adjusted 826 858 Diluted earnings per common share $ 1.19 $ 0.70 Stock options to purchase 0.6 million and 0.8 million shares of common stock were anti-dilutive for the three months ended May 4, 2018 and May 5, 2017 , respectively.

Income Taxes

Income Taxes	3 Months Ended
	May 04, 2018
Income Taxes
Income Taxes	Note 8 : Income Taxes - The Company’s effective income tax rates were 24.3% and 35.5% for the three months ended May 4, 2018 and May 5, 2017 , respectively. The lower effective income tax rate for the three months ended May 4, 2018 was primarily due to the enactment of the Tax Cuts and Jobs Act (Tax Act) during fiscal 2017, which lowered the corporate federal income tax rate from 35% to 21%. Based on the Company’s interpretation of the Tax Act, the Company made reasonable estimates to record provisional adjustments during the fourth quarter of fiscal 2017. However, the final impact may differ due to subsequent legislative action, changes in interpretations and assumptions, as well as the issuance of additional guidance from the Internal Revenue Service and state taxing authorities. We have not made any measurement-period adjustments related to these items during the three months ended May 4, 2018 , because we have not finalized the following items: the earnings and profits of the relevant subsidiaries, deemed repatriation of deferred foreign income, and prior year deferred tax activity. The Company will continue to evaluate the Tax Act and gather additional information within the measurement period allowed, which will be completed no later than the fourth quarter of fiscal 2018.

Supplemental Disclosure

Supplemental Disclosure	3 Months Ended
	May 04, 2018
Supplemental Disclosure
Supplemental Disclosure	Note 9 : Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended (In millions) May 4, 2018 May 5, 2017 Long-term debt $ 145 $ 145 Capitalized lease obligations 15 14 Interest income (3 ) (3 ) Interest capitalized (1 ) (1 ) Other 4 6 Interest - net $ 160 $ 161 Supplemental disclosures of cash flow information: Three Months Ended (In millions) May 4, 2018 May 5, 2017 Cash paid for interest, net of amount capitalized $ 288 $ 285 Cash paid for income taxes - net $ 43 $ 43 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 8 $ 3 Cash dividends declared but not paid $ 338 $ 299

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	May 04, 2018
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). During the first quarter of fiscal year 2018, the Company conformed the financial reporting calendar of a subsidiary, which did not have a significant effect on the consolidated financial statements. The consolidated financial statements (unaudited), in the opinion of management, contain all adjustments necessary to present fairly the financial position as of May 4, 2018 , and May 5, 2017 , and the results of operations and comprehensive income for the three months ended May 4, 2018 , and May 5, 2017 , and cash flows for the three months ended May 4, 2018 and May 5, 2017 . These interim consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe’s Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended February 2, 2018 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.
Recent Accounting Pronouncements	Accounting Pronouncements Recently Adopted Effective February 3, 2018, the Company adopted Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606) , and all the related amendments, using the modified retrospective method. ASU 2014-09 requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Upon adoption of ASU 2014-09, the Company recorded an immaterial adjustment to the opening balance of retained earnings as of February 3, 2018, with related adjustments to deferred revenue, accounts payable and related tax effects. The adjustment to retained earnings primarily relates to the change in revenue recognition related to gift card breakage. The adoption of the guidance also required a change in the timing of how installation services are recognized, the presentation of sales return reserve on the consolidated balance sheet, and a change in the presentation of the Company’s profit sharing income from its proprietary credit program. We applied ASU 2014-09 only to contracts that were not completed prior to fiscal 2018. Results for reporting periods beginning after February 2, 2018 are presented under ASU 2014-09, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods. See Note 2 for additional details of the Company’s revenues. The impact of adopting the new revenue recognition guidance on our consolidated statement of earnings is as follows: Three Months Ended May 4, 2018 Consolidated Statements of Earnings (in millions) As Reported Under Historical Guidance Impact of Adopting ASU 2014-09 Net sales $ 17,360 $ 17,231 $ 129 Cost of sales 11,348 11,364 (16 ) Gross margin 6,012 5,867 145 Selling, general and administrative 4,187 4,043 144 Operating income 1,465 1,464 1 Pre-tax earnings 1,305 1,304 1 Net earnings $ 988 $ 987 $ 1 The impacts of adopting the new revenue recognition guidance to assets and liabilities on our consolidated balance sheets are as follows: Balance at May 4, 2018 Consolidated Balance Sheets (in millions) As Reported Under Historical Guidance Impact of Adopting ASU 2014-09 Assets Other current assets $ 1,059 $ 862 $ 197 Liabilities Accounts payable 10,104 10,092 12 Deferred revenue 1,439 1,517 (78 ) Other current liabilities 2,620 2,406 214 Accounting Pronouncements Not Yet Adopted In January 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The ASU eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation to the identified assets and liabilities of the reporting unit to measure goodwill impairment. Under the amendments in this update, a goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements but expects the ASU to have a material impact on its consolidated balance sheets, as a result of the requirement to recognize right-of-use assets and lease liabilities.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	May 04, 2018
Summary of Significant Accounting Policies
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The impact of adopting the new revenue recognition guidance on our consolidated statement of earnings is as follows: Three Months Ended May 4, 2018 Consolidated Statements of Earnings (in millions) As Reported Under Historical Guidance Impact of Adopting ASU 2014-09 Net sales $ 17,360 $ 17,231 $ 129 Cost of sales 11,348 11,364 (16 ) Gross margin 6,012 5,867 145 Selling, general and administrative 4,187 4,043 144 Operating income 1,465 1,464 1 Pre-tax earnings 1,305 1,304 1 Net earnings $ 988 $ 987 $ 1 The impacts of adopting the new revenue recognition guidance to assets and liabilities on our consolidated balance sheets are as follows: Balance at May 4, 2018 Consolidated Balance Sheets (in millions) As Reported Under Historical Guidance Impact of Adopting ASU 2014-09 Assets Other current assets $ 1,059 $ 862 $ 197 Liabilities Accounts payable 10,104 10,092 12 Deferred revenue 1,439 1,517 (78 ) Other current liabilities 2,620 2,406 214

Net Sales (Tables)

Net Sales (Tables)	3 Months Ended
	May 04, 2018
Net Sales
Sources of Revenue	The following table presents the Company’s sources of revenue: (In millions) Three Months Ended May 4, 2018 May 5, 2017 Products $ 16,501 $ 16,220 Services 624 585 Other 235 55 Net sales $ 17,360 $ 16,860
Revenue from External Customers by Merchandise Division	The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended May 4, 2018 May 5, 2017 (In millions) Total Sales % Total Sales % Home Décor 1 $ 7,009 40 % $ 6,752 40 % Building & Maintenance 2 6,797 39 6,484 38 Seasonal 3 3,223 19 3,472 21 Other 331 2 152 1 Total $ 17,360 100 % $ 16,860 100 % 1 Home Décor includes the following product categories: Appliances , Fashion Fixtures , Flooring , Kitchens , and Paint 2 Building & Maintenance includes the following product categories: Lumber & Building Materials , Millwork , Rough Plumbing & Electrical , and Tools & Hardware 3 Seasonal includes the following product categories: Lawn & Garden and Seasonal & Outdoor Living
Revenue from External Customers by Geographic Areas	The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended May 4, 2018 May 5, 2017 United States $ 16,173 $ 15,868 International 1,187 992 Net Sales $ 17,360 $ 16,860

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	May 04, 2018
Fair Value Measurements
Fair value measurements - recurring basis	The following table presents the Company’s financial assets measured at fair value on a recurring basis as of May 4, 2018 , May 5, 2017 , and February 2, 2018 . The fair values of these instruments approximated amortized costs. Fair Value Measurements at (In millions) Measurement Level May 4, 2018 May 5, 2017 February 2, 2018 Short-term investments: Available-for-sale securities Money market funds Level 1 $ 188 $ 70 $ 86 Certificates of deposit Level 1 17 12 16 Municipal obligations Level 2 — 2 — Total short-term investments $ 205 $ 84 $ 102 Long-term investments: Available-for-sale securities Municipal floating rate obligations Level 2 $ 321 $ 472 $ 407 Certificates of deposit Level 1 — 3 1 Municipal obligations Level 2 — 2 — Total long-term investments $ 321 $ 477 $ 408 There were no transfers between Levels 1, 2 or 3 during any of the periods presented.
Fair value of financial instruments	Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease obligations, are as follows: May 4, 2018 May 5, 2017 February 2, 2018 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 14,963 $ 15,151 $ 15,203 $ 15,948 $ 14,961 $ 15,608 Mortgage notes (Level 2) 6 7 7 7 6 7 Long-term debt (excluding capitalized lease obligations) $ 14,969 $ 15,158 $ 15,210 $ 15,955 $ 14,967 $ 15,615

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	May 04, 2018
Shareholders' Equity
Schedule of share repurchases	Shares repurchased for the three months ended May 4, 2018 and May 5, 2017 were as follows: Three Months Ended May 4, 2018 May 5, 2017 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 8.7 $ 750 15.2 $ 1,250 Shares withheld from employees 0.1 8 0.2 14 Total share repurchases 8.8 $ 758 15.4 $ 1,264 1 Reductions of $703 million and $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 4, 2018 and May 5, 2017 , respectively.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	May 04, 2018
Earnings Per Share
Schedule of earnings per share, basic and diluted	The following table reconciles earnings per common share for the three months ended May 4, 2018 and May 5, 2017 : Three Months Ended (In millions, except per share data) May 4, 2018 May 5, 2017 Basic earnings per common share: Net earnings $ 988 $ 602 Less: Net earnings allocable to participating securities (3 ) (2 ) Net earnings allocable to common shares, basic $ 985 $ 600 Weighted-average common shares outstanding 825 857 Basic earnings per common share $ 1.19 $ 0.70 Diluted earnings per common share: Net earnings $ 988 $ 602 Less: Net earnings allocable to participating securities (3 ) (2 ) Net earnings allocable to common shares, diluted $ 985 $ 600 Weighted-average common shares outstanding 825 857 Dilutive effect of non-participating share-based awards 1 1 Weighted-average common shares, as adjusted 826 858 Diluted earnings per common share $ 1.19 $ 0.70

Supplemental Disclosure (Tables

Supplemental Disclosure (Tables)	3 Months Ended
	May 04, 2018
Supplemental Disclosure
Net interest expense	Net interest expense is comprised of the following: Three Months Ended (In millions) May 4, 2018 May 5, 2017 Long-term debt $ 145 $ 145 Capitalized lease obligations 15 14 Interest income (3 ) (3 ) Interest capitalized (1 ) (1 ) Other 4 6 Interest - net $ 160 $ 161
Supplemental disclosures of cash flow information	Supplemental disclosures of cash flow information: Three Months Ended (In millions) May 4, 2018 May 5, 2017 Cash paid for interest, net of amount capitalized $ 288 $ 285 Cash paid for income taxes - net $ 43 $ 43 Non-cash investing and financing activities: Non-cash property acquisitions, including assets acquired under capital lease $ 8 $ 3 Cash dividends declared but not paid $ 338 $ 299

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017	Feb. 02, 2018
Consolidated Statements Of Earnings
Net sales	$ 17,360	$ 16,860
Cost of sales	11,348	11,060
Gross margin	6,012	5,800
Selling, general and administrative	4,187	3,876
Operating income	1,465	1,559
Pre-tax earnings	1,305	934
Net earnings	988	602
Consolidated Balance Sheets
Other current assets	1,059	975	$ 689
Accounts payable	10,104	9,905	6,590
Deferred revenue	1,439	1,415	1,378
Other current liabilities	2,620	$ 2,346	$ 1,950
Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606
Consolidated Statements Of Earnings
Net sales	17,231
Cost of sales	11,364
Gross margin	5,867
Selling, general and administrative	4,043
Operating income	1,464
Pre-tax earnings	1,304
Net earnings	987
Consolidated Balance Sheets
Other current assets	862
Accounts payable	10,092
Deferred revenue	1,517
Other current liabilities	2,406
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Consolidated Statements Of Earnings
Net sales	129
Cost of sales	(16)
Gross margin	145
Selling, general and administrative	144
Operating income	1
Pre-tax earnings	1
Net earnings	1
Consolidated Balance Sheets
Other current assets	197
Accounts payable	12
Deferred revenue	(78)
Other current liabilities	$ 214

Net Sales (Details)

Net Sales (Details) - USD ($) $ in Millions		3 Months Ended
		May 04, 2018	May 05, 2017
Disaggregation of Revenue [Line Items]
Products		$ 16,501	$ 16,220
Services		624	585
Other		235	55
Net sales		$ 17,360	$ 16,860
Percentage of net sales		100.00%	100.00%
Home Décor
Disaggregation of Revenue [Line Items]
Net sales	[1]	$ 7,009	$ 6,752
Percentage of net sales	[1]	40.00%	40.00%
Building and Maintenance
Disaggregation of Revenue [Line Items]
Net sales	[2]	$ 6,797	$ 6,484
Percentage of net sales	[2]	39.00%	38.00%
Seasonal
Disaggregation of Revenue [Line Items]
Net sales	[3]	$ 3,223	$ 3,472
Percentage of net sales	[3]	19.00%	21.00%
Other
Disaggregation of Revenue [Line Items]
Net sales		$ 331	$ 152
Percentage of net sales		2.00%	1.00%
United States
Disaggregation of Revenue [Line Items]
Net sales		$ 16,173	$ 15,868
International
Disaggregation of Revenue [Line Items]
Net sales		$ 1,187	$ 992
[1]	Home Décor includes the following product categories: Appliances, Fashion Fixtures, Flooring, Kitchens, and Paint
[2]	Building & Maintenance includes the following product categories: Lumber & Building Materials, Millwork, Rough Plumbing & Electrical, and Tools & Hardware
[3]	Seasonal includes the following product categories: Lawn & Garden and Seasonal & Outdoor Living

Net Sales (Details Textual)

Net Sales (Details Textual) - USD ($) $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Contract with Customer, Asset and Liability
Sales return liability	$ 305
Right of return assets	197
Sales return liability, net		$ 101
Deferred Revenue
Deferred revenue from undelivered products and installation	1,000	967
Outstanding stored-value cards	437	449
Expenses for claims incurred	$ 46	$ 36

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Estimate of Fair Value - USD ($) $ in Millions	May 04, 2018	Feb. 02, 2018	May 05, 2017
Short-term Investments
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	$ 205	$ 102	$ 84
Short-term Investments | Money Market Funds | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	188	86	70
Short-term Investments | Certificates Of Deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	17	16	12
Short-term Investments | Municipal Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	0	0	2
Long-term Investments
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	321	408	477
Long-term Investments | Certificates Of Deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	0	1	3
Long-term Investments | Municipal Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	0	0	2
Long-term Investments | Municipal Floating Rate Obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Available-for-sale securities, fair value	$ 321	$ 407	$ 472

Fair Value Measurements (Deta29

Fair Value Measurements (Details 1) - USD ($) $ in Millions	May 04, 2018	Feb. 02, 2018	May 05, 2017
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations)	$ 14,969	$ 14,967	$ 15,210
Unsecured Notes
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations)	14,963	14,961	15,203
Mortgage Notes
Financial Instruments
Long-term debt carrying value (excluding capitalized lease obligations)	6	6	7
Estimate of Fair Value
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations)	15,158	15,615	15,955
Estimate of Fair Value | Unsecured Notes | Fair Value (Level 1)
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations)	15,151	15,608	15,948
Estimate of Fair Value | Mortgage Notes | Fair Value (Level 2)
Financial Instruments
Long-term debt fair value (excluding capitalized lease obligations)	$ 7	$ 7	$ 7

Restricted Investment Balances

Restricted Investment Balances (Details) - USD ($) $ in Millions	May 04, 2018	Feb. 02, 2018	May 05, 2017
Restricted Investment Balances
Restricted balances included in short-term investments	$ 188	$ 86	$ 70
Restricted balances included in long-term investments	$ 298	$ 381	$ 340

Property (Details)

Property (Details) - USD ($) $ in Billions	May 04, 2018	Feb. 02, 2018	May 05, 2017
Property
Accumulated depreciation	$ 17.4	$ 17.2	$ 16.9

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions		3 Months Ended
		May 04, 2018	May 05, 2017
Shareholders' Equity
Reduction in retained earnings		$ 703	$ 1,198
Share Repurchases
Share repurchases, value	[1]	$ 758	$ 1,264
Share repurchases, shares		8.8	15.4
Share Repurchase Program
Share Repurchases
Share repurchases, value	[1]	$ 750	$ 1,250
Share repurchases, shares		8.7	15.2
Shares Withheld from Employees
Share Repurchases
Share repurchases, value	[1]	$ 8	$ 14
Share repurchases, shares		0.1	0.2
[1]	Reductions of $703 million and $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 4, 2018 and May 5, 2017, respectively.

Shareholders' Equity (Details T

Shareholders' Equity (Details Textual) - USD ($) shares in Millions		3 Months Ended
		May 04, 2018	May 05, 2017	Jan. 26, 2018	Jan. 27, 2017
Share Repurchases
Share repurchases, shares		8.8	15.4
Share repurchases, value	[1]	$ 758,000,000	$ 1,264,000,000
Share Repurchase Program
Share Repurchases
Remaining share repurchases authorization, value		$ 6,200,000,000
Share repurchases, shares		8.7	15.2
Share repurchases, value	[1]	$ 750,000,000	$ 1,250,000,000
January 27, 2017 Share Repurchase Authorization
Share Repurchases
Share repurchases authorized, value					$ 5,000,000,000
January 26, 2018 Share Repurchase Authorization
Share Repurchases
Share repurchases authorized, value				$ 5,000,000,000
Open market purchases
Share Repurchases
Share repurchases, shares		8.7
Share repurchases, value		$ 750,000,000
[1]	Reductions of $703 million and $1.2 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended May 4, 2018 and May 5, 2017, respectively.

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Basic earnings per common share:
Net earnings	$ 988	$ 602
Less: Net earnings allocable to participating securities	(3)	(2)
Net earnings allocable to common shares, basic	$ 985	$ 600
Weighted-average common shares outstanding	825	857
Basic earnings per common share	$ 1.19	$ 0.70
Diluted earnings per common share:
Net earnings	$ 988	$ 602
Less: Net earnings allocable to participating securities	(3)	(2)
Net earnings allocable to common shares, diluted	$ 985	$ 600
Weighted-average common shares outstanding	825	857
Dilutive effect of non-participating share-based awards	1	1
Weighted-average common shares, as adjusted	826	858
Diluted earnings per common share	$ 1.19	$ 0.70

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual) - shares shares in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Earnings Per Share
Anti-dilutive securities	0.6	0.8

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	May 04, 2018	May 05, 2017
Income Taxes
Effective income tax rate	24.30%	35.50%

Supplemental Disclosure (Detail

Supplemental Disclosure (Details) - USD ($) $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Net interest expense
Long-term debt	$ 145	$ 145
Capitalized lease obligations	15	14
Interest income	(3)	(3)
Interest capitalized	(1)	(1)
Other	4	6
Interest - net	$ 160	$ 161

Supplemental Disclosure (Deta38

Supplemental Disclosure (Details 1) - USD ($) $ in Millions	3 Months Ended
	May 04, 2018	May 05, 2017
Supplemental disclosures of cash flow information
Cash paid for interest, net of amount capitalized	$ 288	$ 285
Cash paid for income taxes, net	43	43
Non-cash investing and financing activities:
Non-cash property acquisitions, including assets acquired under capital lease	8	3
Cash dividends declared but not paid	$ 338	$ 299