Lowe's Companies (LOW) 10-Q 25 Nov 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Oct. 30, 2020	Nov. 23, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 30, 2020
Document Transition Report	false
Entity File Number	1-7898
Entity Registrant Name	LOWES COMPANIES INC
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	56-0578072
Entity Address, Address Line One	1000 Lowes Blvd.
Entity Address, City or Town	Mooresville
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28117
City Area Code	704
Local Phone Number	758-1000
Title of each class	Common Stock, par value $0.50 per share
Trading Symbol	LOW
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity small business	false
Entity emerging growth company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		732,722,859
Entity Central Index Key	0000060667
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--01-29

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Oct. 30, 2020	Jan. 31, 2020	Nov. 01, 2019
Current assets:
Cash and cash equivalents	$ 8,249	$ 716	$ 794
Short-term investments	1,852	160	127
Merchandise inventory – net	15,712	13,179	13,716
Other current assets	1,103	1,263	1,025
Total current assets	26,916	15,318	15,662
Property, less accumulated depreciation	18,683	18,669	18,371
Operating lease right-of-use assets	3,823	3,891	3,873
Long-term investments	202	372	363
Deferred income taxes – net	241	216	479
Other assets	1,015	1,005	1,016
Total assets	50,880	39,471	39,764
Current liabilities:
Short-term borrowings	0	1,941	637
Current maturities of long-term debt	609	597	574
Current operating lease liabilities	530	501	499
Accounts payable	12,759	7,659	8,822
Accrued compensation and employee benefits	1,117	684	779
Deferred revenue	1,614	1,219	1,222
Other current liabilities	2,935	2,581	2,530
Total current liabilities	19,564	15,182	15,063
Long-term debt, excluding current maturities	21,185	16,768	16,635
Noncurrent operating lease liabilities	3,907	3,943	3,942
Deferred revenue – extended protection plans	1,007	894	875
Other liabilities	1,144	712	791
Total liabilities	46,807	37,499	37,306
Shareholders' equity:
Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none	0	0	0
Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 752 million, 763 million, and 768 million shares, respectively	376	381	384
Capital in excess of par value	0	0	0
Retained earnings	3,942	1,727	2,238
Accumulated other comprehensive loss	(245)	(136)	(164)
Total shareholders' equity	4,073	1,972	2,458
Total liabilities and shareholders' equity	$ 50,880	$ 39,471	$ 39,764

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Oct. 30, 2020	Jan. 31, 2020	Nov. 01, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 5	$ 5	$ 5
Preferred stock, shares authorized	5,000,000	5,000,000	5,000,000
Preferred stock, shares issued	0	0	0
Preferred stock, shares outstanding	0	0	0
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50	$ 0.50
Common stock, shares authorized	5,600,000,000	5,600,000,000	5,600,000,000
Common stock, shares issued	752,000,000	763,000,000	768,000,000
Common stock, shares outstanding	752,000,000	763,000,000	768,000,000

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Current Earnings
Net sales	$ 22,309	$ 17,388	$ 69,286	$ 56,121
Cost of sales	15,009	11,748	46,170	38,159
Gross margin	7,300	5,640	23,116	17,962
Expenses:
Selling, general and administrative	4,770	3,772	13,985	11,682
Depreciation and amortization	355	310	1,008	924
Operating income	2,175	1,558	8,123	5,356
Interest – net	221	177	644	508
Loss on extinguishment of debt	1,060	0	1,060	0
Pre-tax earnings	894	1,381	6,419	4,848
Income tax provision	202	332	1,562	1,077
Net earnings	$ 692	$ 1,049	$ 4,857	$ 3,771
Weighted-average common shares outstanding - basic (in shares)	752	769	753	782
Basic earnings per common share (in dollars per share)	$ 0.92	$ 1.36	$ 6.42	$ 4.81
Weighted-average common shares outstanding - diluted (in shares)	754	770	754	783
Diluted earnings per common share (in dollars per share)	$ 0.91	$ 1.36	$ 6.41	$ 4.80

Consolidated Statements of Ea_2

Consolidated Statements of Earnings (Unaudited) (Percents)	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Current Earnings
Net sales	100.00%	100.00%	100.00%	100.00%
Cost of sales	67.28%	67.56%	66.64%	67.99%
Gross margin	32.72%	32.44%	33.36%	32.01%
Expenses:
Selling, general and administrative	21.38%	21.69%	20.18%	20.82%
Depreciation and amortization	1.59%	1.79%	1.46%	1.65%
Operating income	9.75%	8.96%	11.72%	9.54%
Interest – net	0.99%	1.02%	0.93%	0.90%
Loss on extinguishment of debt	4.75%	0.00%	1.53%	0.00%
Pre-tax earnings	4.01%	7.94%	9.26%	8.64%
Income tax provision	0.91%	1.90%	2.25%	1.92%
Net earnings	3.10%	6.04%	7.01%	6.72%

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Comprehensive Income
Net earnings	$ 692	$ 1,049	$ 4,857	$ 3,771
Foreign currency translation adjustments – net of tax	18	24	(27)	60
Cash flow hedges – net of tax	24	(1)	(84)	(15)
Other	(2)	0	2	0
Other comprehensive income/(loss)	40	23	(109)	45
Comprehensive income	$ 732	$ 1,072	$ 4,748	$ 3,816

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Unaudited) (Percents)	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Comprehensive Income
Net earnings	3.10%	6.04%	7.01%	6.72%
Foreign currency translation adjustments – net of tax	0.08%	0.13%	(0.04%)	0.11%
Cash flow hedges – net of tax	0.11%	0.00%	(0.12%)	(0.03%)
Other	(0.01%)	0.00%	0.00%	0.00%
Other comprehensive income/(loss)	0.18%	0.13%	(0.16%)	0.08%
Comprehensive income	3.28%	6.17%	6.85%	6.80%

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Cumulative effect of accounting change	Common Stock	Capital in Excess of Par Value	Retained Earnings	Retained EarningsCumulative effect of accounting change	Accumulated Other Comprehensive Loss
Balance (in shares) at Feb. 01, 2019			801
Balance at Feb. 01, 2019	$ 3,644	$ (263)	$ 401	$ 0	$ 3,452	$ (263)	$ (209)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	3,771				3,771
Other comprehensive income (loss)	45						45
Cash dividends declared	(1,233)				(1,233)
Share-based payment expense	72			72
Repurchases of common stock (in shares)			(36)
Repurchases of common stock	(3,655)		$ (18)	(148)	(3,489)
Issuance of common stock under share-based payment plans (in shares)			3
Issuance of common stock under share-based payment plans	$ 77		$ 1	76
Balance (in shares) at Nov. 01, 2019	768		768
Balance at Nov. 01, 2019	$ 2,458		$ 384	0	2,238		(164)
Balance (in shares) at Aug. 02, 2019			776
Balance at Aug. 02, 2019	2,640		$ 388	0	2,439		(187)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	1,049				1,049
Other comprehensive income (loss)	23						23
Cash dividends declared	(423)				(423)
Share-based payment expense	20			20
Repurchases of common stock (in shares)			(8)
Repurchases of common stock	(858)		$ (4)	(27)	(827)
Issuance of common stock under share-based payment plans (in shares)			0
Issuance of common stock under share-based payment plans	$ 7			7
Balance (in shares) at Nov. 01, 2019	768		768
Balance at Nov. 01, 2019	$ 2,458		$ 384	0	2,238		(164)
Balance (in shares) at Jan. 31, 2020	763		763
Balance at Jan. 31, 2020	$ 1,972		$ 381	0	1,727		(136)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	4,857				4,857
Other comprehensive income (loss)	(109)						(109)
Cash dividends declared	(1,284)				(1,284)
Share-based payment expense	103			103
Repurchases of common stock (in shares)			(13)
Repurchases of common stock	(1,567)		$ (6)	(203)	(1,358)
Issuance of common stock under share-based payment plans (in shares)			2
Issuance of common stock under share-based payment plans	$ 101		$ 1	100
Balance (in shares) at Oct. 30, 2020	752		752
Balance at Oct. 30, 2020	$ 4,073		$ 376	0	3,942		(245)
Balance (in shares) at Jul. 31, 2020			756
Balance at Jul. 31, 2020	4,356		$ 378	129	4,134		(285)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	692				692
Other comprehensive income (loss)	40						40
Cash dividends declared	(452)				(452)
Share-based payment expense	39			39
Repurchases of common stock (in shares)			(4)
Repurchases of common stock	(621)		$ (2)	(187)	(432)
Issuance of common stock under share-based payment plans (in shares)			0
Issuance of common stock under share-based payment plans	$ 19		$ 0	19
Balance (in shares) at Oct. 30, 2020	752		752
Balance at Oct. 30, 2020	$ 4,073		$ 376	$ 0	$ 3,942		$ (245)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends per share (in dollars per share)	$ 0.60	$ 0.55	$ 1.70	$ 1.58

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019
Cash flows from operating activities:
Net earnings	$ 4,857	$ 3,771
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,152	1,029
Noncash lease expense	356	341
Deferred income taxes	5	(88)
Loss on property and other assets – net	114	93
Loss on extinguishment of debt	1,060	0
Share-based payment expense	107	75
Changes in operating assets and liabilities:
Merchandise inventory – net	(2,545)	(1,129)
Other operating assets	147	(96)
Accounts payable	5,099	523
Other operating liabilities	1,133	(408)
Net cash provided by operating activities	11,485	4,111
Cash flows from investing activities:
Purchases of investments	(2,548)	(563)
Proceeds from sale/maturity of investments	1,032	556
Capital expenditures	(1,172)	(927)
Proceeds from sale of property and other long-term assets	60	71
Other – net	(24)	0
Net cash used in investing activities	(2,652)	(863)
Cash flows from financing activities:
Net change in commercial paper	(941)	(85)
Net proceeds from issuance of debt	7,929	2,972
Repayment of debt	(5,582)	(1,092)
Proceeds from issuance of common stock under share-based payment plans	102	78
Cash dividend payments	(1,252)	(1,195)
Repurchases of common stock	(1,528)	(3,649)
Other – net	(32)	(7)
Net cash used in financing activities	(1,304)	(2,978)
Effect of exchange rate changes on cash	4	1
Net increase in cash and cash equivalents, including cash classified within current assets held for sale	7,533	271
Less: Net decrease in cash classified within current assets held for sale	0	12
Net increase in cash and cash equivalents	7,533	283
Cash and cash equivalents, beginning of period	716	511
Cash and cash equivalents, end of period	$ 8,249	$ 794

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements (unaudited) and notes to the condensed 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). The condensed consolidated financial statements (unaudited), in the opinion of management, contain all normal recurring adjustments necessary to present fairly the financial position as of October 30, 2020, and November 1, 2019, the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended October 30, 2020, and November 1, 2019, and cash flows for the nine months ended October 30, 2020, and November 1, 2019. The January 31, 2020 consolidated balance sheet was derived from the audited financial statements. These interim condensed 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 January 31, 2020 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Impacts of COVID-19 On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. In response to the COVID-19 pandemic, federal, state and local governments put in place travel restrictions, quarantines, “shelter-in-place” orders, and various other restrictive measures in an attempt to control the spread of the disease. Such restrictions or orders have resulted in, and continue to result in, business closures, work stoppages, slowdowns and delays, among other effects that impact the Company’s operations, as well as customer demand and the operations of our suppliers. At the onset of the pandemic, the Company implemented a number of measures to facilitate a safer store environment and to provide support for its associates, customers and community. During the first quarter, the Company expanded associate benefits in response to COVID-19 to provide additional paid time off, special payments to hourly associates, temporary wage increases and other benefits. During the second and third quarters of 2020, the Company provided additional bonus payments to hourly associates, in addition to continued enhanced cleaning protocols and charitable contributions. These actions resulted in $288 million and $1.0 billion of expense included in selling, general and administrative (SG&A) expense in the consolidated statements of earnings for the three and nine months ended October 30, 2020, respectively. Also in response to the uncertainties surrounding COVID-19, during the first quarter of 2020, the Company took proactive steps to further enhance its liquidity position by temporarily suspending its share repurchase program, increasing the capacity of its revolving credit facilities and the associated commercial paper program, as well as issuing senior notes in March 2020. During the third quarter, the Company reinstated its previously authorized share repurchase program. The Company continues to evaluate the carrying amounts of its long-lived assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable, including potential market impacts from the COVID-19 pandemic. The Company performed its quarterly assessment of long-lived assets and did not record any material long-lived asset impairments. In addition, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), which was enacted on March 27, 2020, includes measures to assist companies in response to the COVID-19 pandemic. In accordance with the CARES Act, the Company has deferred the payment of qualifying employer payroll taxes which are required to be paid over two years, with half due by December 31, 2021 and the other half due by December 31, 2022. As of October 30, 2020, the Company deferred $407 million of qualifying employer payroll taxes which is included in other liabilities in the consolidated balance sheet and included in cash flows from other operating liabilities in the consolidated statement of cash flows. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation, including the addition of cash flow hedges – net of tax on the consolidated statements of comprehensive income, and the inclusion of goodwill within other assets on the consolidated balance sheets. Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting . The ASU provides practical expedients for contract modification accounting related to the transition away from the London Interbank Offered Rate (LIBOR) and other interbank offering rates to alternative reference rates. The expedients are applicable to contract modifications made and hedging relationships entered into on or before December 31, 2022. The Company intends to use the expedients where needed for reference rate transition. The Company continues to evaluate this standard update and does not expect a material impact to the Company’s financial statements or disclosures. Recent accounting pronouncements pending adoption not discussed in this Form 10-Q or in the 2019 Form 10-K are either not applicable to the Company or are not expected to have a material impact on the Company.

Revenue

Revenue	9 Months Ended
	Oct. 30, 2020
Revenue Recognition
Revenue	Revenue - 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 Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Products $ 21,342 $ 16,379 $ 66,724 $ 53,259 Services 552 545 1,459 1,690 Other 415 464 1,103 1,172 Net sales $ 22,309 $ 17,388 $ 69,286 $ 56,121 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. The merchandise return reserve is presented on a gross basis, with a separate asset and liability included in the consolidated balance sheets. Anticipated sales returns reflected in other current liabilities were $281 million at October 30, 2020, $227 million at November 1, 2019, and $194 million at January 31, 2020. The associated right of return assets reflected in other current assets were $180 million at October 30, 2020, $148 million at November 1, 2019, and $129 million at January 31, 2020. Deferred revenue - retail The 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 $1.2 billion at October 30, 2020, $778 million at November 1, 2019, and $685 million at January 31, 2020. The majority of revenue for goods and services is recognized in the quarter following revenue deferral. Deferred revenue - stored-value cards The deferred revenues associated with outstanding stored-value cards (gift cards and returned merchandise credits) were $439 million, $444 million, and $534 million at October 30, 2020, November 1, 2019, and January 31, 2020, respectively, and these amounts are included in deferred revenue on the consolidated balance sheets. Amounts recognized as breakage were insignificant for the three and nine months ended October 30, 2020, and November 1, 2019. Deferred revenue - extended protection plans The deferred revenues from separately priced extended protection plans were $1.0 billion, $875 million, and $894 million at October 30, 2020, November 1, 2019, and January 31, 2020, respectively. Revenue recognized into sales were $106 million and $314 million for the three and nine months ended October 30, 2020, respectively, and $103 million and $303 million for the three and nine months ended November 1, 2019, respectively. Incremental direct acquisition costs associated with the sale of extended protection plans for contracts greater than one year are also deferred and recognized as expense on a straight-line basis over the respective contract term and were insignificant at October 30, 2020, and November 1, 2019. 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 in cost of sales when incurred and totaled $43 million and $121 million for the three and nine months ended October 30, 2020, respectively, and $45 million and $141 million for the three and nine months ended November 1, 2019, respectively. Disaggregation of Revenues The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 (In millions) Net Sales % Net Sales % Net Sales % Net Sales % Home Décor 1 $ 8,168 36.6 % $ 6,490 37.3 % $ 23,855 34.4 % $ 19,929 35.5 % Building Products 2 7,587 34.0 5,794 33.3 21,527 31.1 17,405 31.0 Hardlines 3 6,013 27.0 4,551 26.2 22,466 32.4 17,235 30.7 Other 541 2.4 553 3.2 1,438 2.1 1,552 2.8 Total $ 22,309 100.0 % $ 17,388 100.0 % $ 69,286 100.0 % $ 56,121 100.0 % Note: Merchandise division net sales for the prior period have been reclassified to conform to the current period presentation. 1 Home Décor includes the following product categories: Appliances, Décor, Flooring, Kitchens & Bath, and Paint 2 Building Products includes the following product categories: Building Materials, Electrical, Lighting, Lumber, Millwork, and Rough Plumbing 3 Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 United States $ 20,832 $ 16,131 $ 65,153 $ 52,225 International 1,477 1,257 4,133 3,896 Net Sales $ 22,309 $ 17,388 $ 69,286 $ 56,121

Investments

Investments	9 Months Ended
	Oct. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Investments	Investments - Available-for-sale debt securities are recorded at fair value, and unrealized gains and losses are recorded, net of tax, as a component of accumulated other comprehensive loss. Net unrealized gains on available-for-sale debt securities as of October 30, 2020, November 1, 2019, and January 31, 2020, were not material. Refer to Note 4 for the fair value of the Company’s available-for-sale debt securities by investment type. The Company’s investments are as follows: (In millions) October 30, 2020 November 1, 2019 January 31, 2020 Short-term investments: Available-for-sale debt securities $ 702 127 $ 160 Held-to-maturity securities 1,150 — — Total short-term investments $ 1,852 $ 127 $ 160 Long-term investments: Available-for-sale debt securities $ 202 $ 363 $ 372 Total long-term investments $ 202 $ 363 $ 372 The maturities of available-for-sale and held-to-maturity securities at October 30, 2020, are as follows: Available-for-Sale (In millions) Cost Basis Fair Value Held-to-Maturity Due in one year or less $ 699 $ 702 $ 1,150 Due after one year through five years 198 202 — Total $ 897 $ 904 $ 1,150 Restricted Investments 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 $402 million at October 30, 2020, $127 million at November 1, 2019, and $160 million at January 31, 2020. Restricted balances included in long-term investments were $202 million at October 30, 2020, $363 million at November 1, 2019, and $372 million at January 31, 2020.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	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 and liabilities measured at fair value on a recurring basis as of October 30, 2020, November 1, 2019, and January 31, 2020. Fair Value Measurements at (In millions) Measurement Level October 30, 2020 November 1, 2019 January 31, 2020 Assets: Short-term investments: Available-for-sale debt securities Certificates of deposit Level 1 $ 300 $ — $ — U.S. Treasury notes Level 1 220 13 13 Money market funds Level 1 96 83 105 Corporate debt securities Level 2 49 12 23 Agency securities Level 2 37 19 19 Total short-term investments $ 702 $ 127 $ 160 Long-term investments: Available-for-sale debt securities U.S. Treasury notes Level 1 $ 140 $ 258 $ 280 Corporate debt securities Level 2 52 75 62 Municipal obligations Level 2 10 — — Agency securities Level 2 — 30 30 Total long-term investments $ 202 $ 363 $ 372 Liabilities: Other current liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 9 $ — $ 11 Total other current liabilities $ 9 $ — $ 11 Other liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 5 $ — $ — Total other liabilities $ 5 $ — $ — 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 and nine months ended October 30, 2020, and November 1, 2019, the Company had no material measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. Other Fair Value Disclosures The Company’s financial assets and liabilities not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, held-to-maturity securities, short-term borrowings, accounts payable, 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 finance lease obligations, are as follows: October 30, 2020 November 1, 2019 January 31, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 21,119 $ 24,340 $ 16,646 $ 18,184 $ 16,648 $ 18,808 Mortgage notes (Level 2) 5 5 5 5 5 6 Long-term debt (excluding finance lease obligations) $ 21,124 $ 24,345 $ 16,651 $ 18,189 $ 16,653 $ 18,814

Exit Activities

Exit Activities	9 Months Ended
	Oct. 30, 2020
Restructuring and Related Activities [Abstract]
Exit Activities	Exit Activities - During fiscal year 2019, the Company incurred costs associated with a strategic reassessment of its business to drive an increased focus on its core home improvement operations and to improve overall operating performance and profitability. During the third quarter of fiscal 2019, as a result of the Company’s strategic review of its Canadian operations, the Company recognized pre-tax charges of $53 million associated with long-lived asset impairment. Expenses associated with long-lived asset impairment are included in SG&A expense in the consolidated statements of earnings. Subsequent to the end of the third quarter of fiscal 2019, a decision was made to close 34 under-performing stores in Canada and take additional restructuring actions to improve future sales and profitability of the Canadian operations. The store closings were completed in the first quarter of fiscal 2020. A summary of the significant charges associated with the strategic review of the Canadian operations is as follows: Costs Incurred Three Months Ended Nine Months Ended (In millions) November 1, 2019 November 1, 2019 Long-lived asset impairment $ 53 $ 53 Total $ 53 $ 53

Short-Term Borrowings

Short-Term Borrowings	9 Months Ended
	Oct. 30, 2020
Debt Disclosure [Abstract]
Short-Term Borrowings	Short-Term Borrowings - In March 2020, the Company entered into a $1.02 billion five-year unsecured revolving credit agreement (the 2020 Credit Agreement) with a syndicate of banks. In connection with the 2020 Credit Agreement, the Company refinanced the 364-Day Credit Agreement (2019 Credit Agreement), dated as of September 9, 2019, and terminated any commitments under the 2019 Credit Agreement as of March 23, 2020. Borrowings under the 2020 Credit Agreement will bear interest calculated according to a Base Rate or a Eurocurrency Rate plus an applicable margin. The 2020 Credit Agreement contains customary representations, warranties and covenants for a transaction of this type. The Company was in compliance with those financial covenants at October 30, 2020.The 2020 Credit Agreement, along with the $1.98 billion five year unsecured second amended and restated credit agreement (Second Amended and Restated Credit Agreement) entered into in September 2018, supports the Company’s commercial paper program.  The amounts available to be drawn under the 2020 Credit Agreement and the Second Amended and Restated Credit Agreement are reduced by the amount of borrowings under the commercial paper program. As of October 30, 2020, and November 1, 2019, there were no outstanding borrowings under the 2020 Credit Agreement or the Second Amended and Restated Credit Agreement. As of October 30, 2020, there were no outstanding borrowings under the Company’s commercial paper program. As of November 1, 2019, outstanding borrowings under the Company’s commercial paper program were $637 million, with a weighted average interest rate of 1.97%. Total combined availability under the 2020 Credit Agreement and the Second Amended and Restated Credit Agreement was $3.0 billion as of October 30, 2020.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Oct. 30, 2020
Long-Term Debt
Long-Term Debt	Long-Term Debt - On October 22, 2020, the Company issued $4.0 billion of unsecured fixed rate notes (October 2020 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount (in millions) $ 1,000 April 2028 1.300% $ 5 $ 1,250 October 2030 1.700% $ 10 $ 1,750 October 2050 3.000% $ 17 On March 26, 2020, the Company issued $4.0 billion of unsecured fixed rate notes (March 2020 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount (in millions) $ 750 April 2025 4.000% $ 4 $ 1,250 April 2030 4.500% $ 12 $ 750 April 2040 5.000% $ 10 $ 1,250 April 2050 5.125% $ 13 Interest on the October 2020 Notes and March 2020 Notes (collectively, the 2020 Notes) is payable semiannually in arrears in April and October of each year until maturity. The indentures governing the 2020 Notes contain a provision that allows the Company to redeem these notes at any time, in whole or in part, at specified redemption prices, plus accrued and unpaid interest, if any, up to, but excluding, the date of redemption. The indenture also contains a provision that allows the holders of the notes to require the Company to repurchase all or any part of their notes if a change of control triggering event occurs. If elected under the change of control provisions, the repurchase of the notes will occur at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any, on such notes up to, but excluding, the date of purchase. The indentures governing the 2020 Notes do not limit the aggregate principal amount of debt securities that the Company may issue and does not require the Company to maintain specified financial ratios or levels of net worth or liquidity. In addition, during October 2020, the Company completed a cash tender offer (the 2020 Cash Tender Offer) to purchase and retire $3.0 billion combined aggregate principal amount of its outstanding notes with a weighted average interest rate of 4.80%. As a result of the 2020 Cash Tender Offer, the Company recognized a loss on extinguishment of debt of $1.1 billion which includes premium paid to holders of the debt, unamortized deferred financing fees and original issue discounts, and loss on reverse treasury lock derivative contracts. See Note 8

Derivative Instruments

Derivative Instruments	9 Months Ended
	Oct. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments Cash Flow Hedges The Company utilizes derivative financial instruments to hedge its exposure to changes in benchmark interest rates on forecasted debt issuances. The Company held forward interest rate swap agreements with notional amounts totaling $638 million at October 30, 2020, and $770 million at January 31, 2020. The Company did not hold forward interest rate swap agreements at November 1, 2019. See Note 4 for the gross fair values of the Company’s outstanding derivative financial instruments and corresponding fair value classifications. The cash flows related to forward interest rate swap agreements are included within operating activities in the accompanying consolidated statements of cash flows. The Company accounts for these contracts as cash flow hedges, thus the effective portion of gains and losses resulting from changes in fair value are recognized in other comprehensive income/(loss), net of tax effects, in the consolidated statements of comprehensive income and is recognized in earnings when the underlying hedged transaction impacts the consolidated statements of earnings. A summary of the gain/(loss) on forward interest rate swap derivatives designated as cash flow hedges recorded in other comprehensive loss and earnings for the three and nine months ended October 30, 2020, and November 1, 2019, including its line item in the financial statements, is as follows: (In millions) Three Months Ended Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Other comprehensive income/(loss) Cash flow hedges – net of tax (expense)/benefit of ($7) million, $0 million, $28 million, $6 million, respectively $ 22 $ — $ (85) $ (15) Net earnings Interest – net $ 3 $ — $ 7 $ 1 Other Derivatives Not Designated as Hedging Instruments To hedge the economic risk of changes in value of the 2020 Cash Tender Offer prior to its pricing date, the Company entered into reverse treasury lock derivative contracts with a combined notional of $2.0 billion. Upon the pricing of the 2020 Cash Tender Offer, the Company settled the reverse treasury lock derivative contracts and made a payment to its counterparty for $26 million, which is included in loss on extinguishment of debt in the consolidated statements of earnings for the three and nine months ended October 30, 2020. The cash flows related to these contracts are included within financing activities in the accompanying consolidated statements of cash flows.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Oct. 30, 2020
Shareholders' Equity
Shareholders' Equity	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. As of October 30, 2020, the Company had $8.1 billion remaining in its share repurchase program. Due to the uncertainty caused by the COVID-19 pandemic, the Company temporarily suspended its share repurchases during the first quarter of 2020, but reinstated share repurchases under the program during the third quarter of 2020. In February 2020, the Company entered into an Accelerated Share Repurchase (ASR) agreement with a third-party financial institution to repurchase $500 million of the Company’s common stock. At inception, pursuant to the agreement, the Company paid $500 million to the financial institution using cash on hand and took delivery of 3.9 million shares. The Company finalized the transaction and received an additional 1.6 million shares prior to the end of the first quarter. In addition, during the three and nine months ended October 30, 2020, the Company repurchased shares of its common stock through the open market totaling 3.6 million and 7.7 million shares, respectively, for a cost of $617 million and $1.1 billion, respectively. 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 and nine months ended October 30, 2020, and November 1, 2019, were as follows: Three Months Ended October 30, 2020 November 1, 2019 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 3.6 $ 617 7.7 $ 835 Shares withheld from employees — 4 0.2 23 Total share repurchases 3.6 $ 621 7.9 $ 858 1 Reductions of $431 million and $827 million was recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended October 30, 2020 and November 1, 2019, respectively. Nine Months Ended October 30, 2020 November 1, 2019 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 13.2 $ 1,557 35.3 $ 3,618 Shares withheld from employees 0.1 10 0.3 36 Total share repurchases 13.3 $ 1,567 35.6 $ 3,654 1 Reductions of $1.4 billion and $3.5 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the nine months ended October 30, 2020, and November 1, 2019, respectively.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Oct. 30, 2020
Earnings Per Share
Earnings Per Share	Earnings Per Share - The Company calculates basic and diluted earnings per common share using the two-class method. The following table reconciles earnings per common share for the three and nine months ended October 30, 2020, and November 1, 2019: Three Months Ended Nine Months Ended (In millions, except per share data) October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Basic earnings per common share: Net earnings $ 692 $ 1,049 $ 4,857 $ 3,771 Less: Net earnings allocable to participating securities (3) (3) (20) (11) Net earnings allocable to common shares, basic $ 689 $ 1,046 $ 4,837 $ 3,760 Weighted-average common shares outstanding 752 769 753 782 Basic earnings per common share $ 0.92 $ 1.36 $ 6.42 $ 4.81 Diluted earnings per common share: Net earnings $ 692 $ 1,049 $ 4,857 $ 3,771 Less: Net earnings allocable to participating securities (3) (3) (20) (11) Net earnings allocable to common shares, diluted $ 689 $ 1,046 $ 4,837 $ 3,760 Weighted-average common shares outstanding 752 769 753 782 Dilutive effect of non-participating share-based awards 2 1 1 1 Weighted-average common shares, as adjusted 754 770 754 783 Diluted earnings per common share $ 0.91 $ 1.36 $ 6.41 $ 4.80

Income Taxes

Income Taxes	9 Months Ended
	Oct. 30, 2020
Income Taxes
Income Taxes	Income Taxes -

Supplemental Disclosure

Supplemental Disclosure	9 Months Ended
	Oct. 30, 2020
Supplemental Disclosure
Supplemental Disclosure	Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended Nine Months Ended (In millions) October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Long-term debt $ 213 $ 171 $ 610 $ 498 Finance lease obligations 8 7 25 21 Short-term borrowings 1 — 13 7 Interest income (6) (5) (18) (24) Interest capitalized — — — (1) Interest on tax uncertainties — — — (2) Other 5 4 14 9 Interest – net $ 221 $ 177 $ 644 $ 508 Supplemental disclosures of cash flow information: Nine Months Ended (In millions) October 30, 2020 November 1, 2019 Cash paid for interest, net of amount capitalized $ 750 $ 647 Cash paid for income taxes – net $ 1,357 $ 1,029 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 55 $ 156 Leased assets obtained in exchange for new operating lease liabilities 1 $ 355 $ 374 Cash dividends declared but not paid $ 452 $ 423 1 Excludes $565 million of leases signed but not yet commenced as of October 30, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 30, 2020
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements (unaudited) and notes to the condensed 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). The condensed consolidated financial statements (unaudited), in the opinion of management, contain all normal recurring adjustments necessary to present fairly the financial position as of October 30, 2020, and November 1, 2019, the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended October 30, 2020, and November 1, 2019, and cash flows for the nine months ended October 30, 2020, and November 1, 2019. The January 31, 2020 consolidated balance sheet was derived from the audited financial statements. These interim condensed 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 January 31, 2020 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation, including the addition of cash flow hedges – net of tax on the consolidated statements of comprehensive income, and the inclusion of goodwill within other assets on the consolidated balance sheets.
Accounting Pronouncements Not Yet Adopted	Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting . The ASU provides practical expedients for contract modification accounting related to the transition away from the London Interbank Offered Rate (LIBOR) and other interbank offering rates to alternative reference rates. The expedients are applicable to contract modifications made and hedging relationships entered into on or before December 31, 2022. The Company intends to use the expedients where needed for reference rate transition. The Company continues to evaluate this standard update and does not expect a material impact to the Company’s financial statements or disclosures. Recent accounting pronouncements pending adoption not discussed in this Form 10-Q or in the 2019 Form 10-K are either not applicable to the Company or are not expected to have a material impact on the Company.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Oct. 30, 2020
Revenue Recognition
Sources of Revenue	The following table presents the Company’s sources of revenue: (In millions) Three Months Ended Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Products $ 21,342 $ 16,379 $ 66,724 $ 53,259 Services 552 545 1,459 1,690 Other 415 464 1,103 1,172 Net sales $ 22,309 $ 17,388 $ 69,286 $ 56,121
Disaggregation of Revenues	The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 (In millions) Net Sales % Net Sales % Net Sales % Net Sales % Home Décor 1 $ 8,168 36.6 % $ 6,490 37.3 % $ 23,855 34.4 % $ 19,929 35.5 % Building Products 2 7,587 34.0 5,794 33.3 21,527 31.1 17,405 31.0 Hardlines 3 6,013 27.0 4,551 26.2 22,466 32.4 17,235 30.7 Other 541 2.4 553 3.2 1,438 2.1 1,552 2.8 Total $ 22,309 100.0 % $ 17,388 100.0 % $ 69,286 100.0 % $ 56,121 100.0 % Note: Merchandise division net sales for the prior period have been reclassified to conform to the current period presentation. 1 Home Décor includes the following product categories: Appliances, Décor, Flooring, Kitchens & Bath, and Paint 2 Building Products includes the following product categories: Building Materials, Electrical, Lighting, Lumber, Millwork, and Rough Plumbing
Net Sales Disaggregated by Geographical Area	The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 United States $ 20,832 $ 16,131 $ 65,153 $ 52,225 International 1,477 1,257 4,133 3,896 Net Sales $ 22,309 $ 17,388 $ 69,286 $ 56,121

Investments (Tables)

Investments (Tables)	9 Months Ended
	Oct. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Summary of Investments	The Company’s investments are as follows: (In millions) October 30, 2020 November 1, 2019 January 31, 2020 Short-term investments: Available-for-sale debt securities $ 702 127 $ 160 Held-to-maturity securities 1,150 — — Total short-term investments $ 1,852 $ 127 $ 160 Long-term investments: Available-for-sale debt securities $ 202 $ 363 $ 372 Total long-term investments $ 202 $ 363 $ 372
Maturities of Available-For-Sale and Held-To-Maturity Securities	The maturities of available-for-sale and held-to-maturity securities at October 30, 2020, are as follows: Available-for-Sale (In millions) Cost Basis Fair Value Held-to-Maturity Due in one year or less $ 699 $ 702 $ 1,150 Due after one year through five years 198 202 — Total $ 897 $ 904 $ 1,150

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements - Recurring Basis	The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of October 30, 2020, November 1, 2019, and January 31, 2020. Fair Value Measurements at (In millions) Measurement Level October 30, 2020 November 1, 2019 January 31, 2020 Assets: Short-term investments: Available-for-sale debt securities Certificates of deposit Level 1 $ 300 $ — $ — U.S. Treasury notes Level 1 220 13 13 Money market funds Level 1 96 83 105 Corporate debt securities Level 2 49 12 23 Agency securities Level 2 37 19 19 Total short-term investments $ 702 $ 127 $ 160 Long-term investments: Available-for-sale debt securities U.S. Treasury notes Level 1 $ 140 $ 258 $ 280 Corporate debt securities Level 2 52 75 62 Municipal obligations Level 2 10 — — Agency securities Level 2 — 30 30 Total long-term investments $ 202 $ 363 $ 372 Liabilities: Other current liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 9 $ — $ 11 Total other current liabilities $ 9 $ — $ 11 Other liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 5 $ — $ — Total other liabilities $ 5 $ — $ —
Fair Value of Financial Instruments	Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding finance lease obligations, are as follows: October 30, 2020 November 1, 2019 January 31, 2020 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 21,119 $ 24,340 $ 16,646 $ 18,184 $ 16,648 $ 18,808 Mortgage notes (Level 2) 5 5 5 5 5 6 Long-term debt (excluding finance lease obligations) $ 21,124 $ 24,345 $ 16,651 $ 18,189 $ 16,653 $ 18,814

Exit Activities Exit Activities

Exit Activities Exit Activities (Tables)	9 Months Ended
	Oct. 30, 2020
Restructuring and Related Activities [Abstract]
Schedule of Exit Activity Expenses	A summary of the significant charges associated with the strategic review of the Canadian operations is as follows: Costs Incurred Three Months Ended Nine Months Ended (In millions) November 1, 2019 November 1, 2019 Long-lived asset impairment $ 53 $ 53 Total $ 53 $ 53

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Oct. 30, 2020
Long-Term Debt
Schedule of Unsecured Notes Issued	On October 22, 2020, the Company issued $4.0 billion of unsecured fixed rate notes (October 2020 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount (in millions) $ 1,000 April 2028 1.300% $ 5 $ 1,250 October 2030 1.700% $ 10 $ 1,750 October 2050 3.000% $ 17 On March 26, 2020, the Company issued $4.0 billion of unsecured fixed rate notes (March 2020 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount (in millions) $ 750 April 2025 4.000% $ 4 $ 1,250 April 2030 4.500% $ 12 $ 750 April 2040 5.000% $ 10 $ 1,250 April 2050 5.125% $ 13

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Oct. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Gain (Loss) on Interest Rate Swap Derivatives	A summary of the gain/(loss) on forward interest rate swap derivatives designated as cash flow hedges recorded in other comprehensive loss and earnings for the three and nine months ended October 30, 2020, and November 1, 2019, including its line item in the financial statements, is as follows: (In millions) Three Months Ended Nine Months Ended October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Other comprehensive income/(loss) Cash flow hedges – net of tax (expense)/benefit of ($7) million, $0 million, $28 million, $6 million, respectively $ 22 $ — $ (85) $ (15) Net earnings Interest – net $ 3 $ — $ 7 $ 1

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Oct. 30, 2020
Shareholders' Equity
Schedule of Share Repurchases	Shares repurchased for the three and nine months ended October 30, 2020, and November 1, 2019, were as follows: Three Months Ended October 30, 2020 November 1, 2019 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 3.6 $ 617 7.7 $ 835 Shares withheld from employees — 4 0.2 23 Total share repurchases 3.6 $ 621 7.9 $ 858 1 Reductions of $431 million and $827 million was recorded to retained earnings, after capital in excess of par value was depleted, for the three months ended October 30, 2020 and November 1, 2019, respectively. Nine Months Ended October 30, 2020 November 1, 2019 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 13.2 $ 1,557 35.3 $ 3,618 Shares withheld from employees 0.1 10 0.3 36 Total share repurchases 13.3 $ 1,567 35.6 $ 3,654 1 Reductions of $1.4 billion and $3.5 billion were recorded to retained earnings, after capital in excess of par value was depleted, for the nine months ended October 30, 2020, and November 1, 2019, respectively.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Oct. 30, 2020
Earnings Per Share
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles earnings per common share for the three and nine months ended October 30, 2020, and November 1, 2019: Three Months Ended Nine Months Ended (In millions, except per share data) October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Basic earnings per common share: Net earnings $ 692 $ 1,049 $ 4,857 $ 3,771 Less: Net earnings allocable to participating securities (3) (3) (20) (11) Net earnings allocable to common shares, basic $ 689 $ 1,046 $ 4,837 $ 3,760 Weighted-average common shares outstanding 752 769 753 782 Basic earnings per common share $ 0.92 $ 1.36 $ 6.42 $ 4.81 Diluted earnings per common share: Net earnings $ 692 $ 1,049 $ 4,857 $ 3,771 Less: Net earnings allocable to participating securities (3) (3) (20) (11) Net earnings allocable to common shares, diluted $ 689 $ 1,046 $ 4,837 $ 3,760 Weighted-average common shares outstanding 752 769 753 782 Dilutive effect of non-participating share-based awards 2 1 1 1 Weighted-average common shares, as adjusted 754 770 754 783 Diluted earnings per common share $ 0.91 $ 1.36 $ 6.41 $ 4.80

Supplemental Disclosure (Tables

Supplemental Disclosure (Tables)	9 Months Ended
	Oct. 30, 2020
Supplemental Disclosure
Net Interest Expense	Net interest expense is comprised of the following: Three Months Ended Nine Months Ended (In millions) October 30, 2020 November 1, 2019 October 30, 2020 November 1, 2019 Long-term debt $ 213 $ 171 $ 610 $ 498 Finance lease obligations 8 7 25 21 Short-term borrowings 1 — 13 7 Interest income (6) (5) (18) (24) Interest capitalized — — — (1) Interest on tax uncertainties — — — (2) Other 5 4 14 9 Interest – net $ 221 $ 177 $ 644 $ 508
Supplemental Disclosures of Cash Flow Information	Supplemental disclosures of cash flow information: Nine Months Ended (In millions) October 30, 2020 November 1, 2019 Cash paid for interest, net of amount capitalized $ 750 $ 647 Cash paid for income taxes – net $ 1,357 $ 1,029 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 55 $ 156 Leased assets obtained in exchange for new operating lease liabilities 1 $ 355 $ 374 Cash dividends declared but not paid $ 452 $ 423 1 Excludes $565 million of leases signed but not yet commenced as of October 30, 2020.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Unusual or Infrequent Item, or Both [Line Items]
Selling, general and administrative expenses related to COVID-19	$ 4,770	$ 3,772	$ 13,985	$ 11,682
COVID-19 Pandemic
Unusual or Infrequent Item, or Both [Line Items]
Selling, general and administrative expenses related to COVID-19	288		$ 1,000
Repayment term			2 years
Deferred employer payroll tax	$ 407		$ 407

Revenue - Summary (Details)

Revenue - Summary (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 22,309	$ 17,388	$ 69,286	$ 56,121
Net sales (in percent)	100.00%	100.00%	100.00%	100.00%
United States
Disaggregation of Revenue [Line Items]
Net sales	$ 20,832	$ 16,131	$ 65,153	$ 52,225
International
Disaggregation of Revenue [Line Items]
Net sales	1,477	1,257	4,133	3,896
Products
Disaggregation of Revenue [Line Items]
Net sales	21,342	16,379	66,724	53,259
Services
Disaggregation of Revenue [Line Items]
Net sales	552	545	1,459	1,690
Other
Disaggregation of Revenue [Line Items]
Net sales	415	464	1,103	1,172
Home Decor
Disaggregation of Revenue [Line Items]
Net sales	$ 8,168	$ 6,490	$ 23,855	$ 19,929
Net sales (in percent)	36.60%	37.30%	34.40%	35.50%
Building Products
Disaggregation of Revenue [Line Items]
Net sales	$ 7,587	$ 5,794	$ 21,527	$ 17,405
Net sales (in percent)	34.00%	33.30%	31.10%	31.00%
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	$ 6,013	$ 4,551	$ 22,466	$ 17,235
Net sales (in percent)	27.00%	26.20%	32.40%	30.70%
Other
Disaggregation of Revenue [Line Items]
Net sales	$ 541	$ 553	$ 1,438	$ 1,552
Net sales (in percent)	2.40%	3.20%	2.10%	2.80%

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019	Jan. 31, 2020
Revenue Recognition
Anticipated sales returns	$ 281	$ 227	$ 281	$ 227	$ 194
Right of return assets	180	148	180	148	129
Up-front payment arrangement	1,200	778	1,200	778	685
Liability for stored-value cards	439	444	439	444	534
Deferred revenue from extended protection plans	1,007	875	1,007	875	$ 894
Deferred revenue from extended protection plans recognized in sales	106	103	314	303
Recognized claim expense	$ 43	$ 45	$ 121	$ 141

Investments - Summary (Details)

Investments - Summary (Details) - USD ($) $ in Millions	Oct. 30, 2020	Jan. 31, 2020	Nov. 01, 2019
Short-term investments:
Available-for-sale debt securities	$ 702	$ 160	$ 127
Held-to-maturity securities	1,150	0	0
Total short-term investments	1,852	160	127
Long-term investments:
Available-for-sale debt securities	202	372	363
Total long-term investments	$ 202	$ 372	$ 363

Investments - Maturity (Details

Investments - Maturity (Details) $ in Millions	Oct. 30, 2020USD ($)
Cost Basis
Due in one year or less	$ 699
Due after one year through five years	198
Total	897
Fair Value
Due in one year or less	702
Due after one year through five years	202
Total	904
Held-to-Maturity
Due in one year or less	1,150
Due after one year through five years	0
Total	$ 1,150

Investments - Restricted Invest

Investments - Restricted Investment Balances (Details) - USD ($) $ in Millions	Oct. 30, 2020	Jan. 31, 2020	Nov. 01, 2019
Investments, Debt and Equity Securities [Abstract]
Restricted balances included in short-term investments	$ 402	$ 160	$ 127
Restricted balances included in long-term investments	$ 202	$ 372	$ 363

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions	Oct. 30, 2020	Jan. 31, 2020	Nov. 01, 2019
Assets, Fair Value Disclosure
Investments	$ 904
Fair Value, Measurements, Recurring | Estimate of Fair Value | Short-term Investments
Assets, Fair Value Disclosure
Investments	702	$ 160	$ 127
Fair Value, Measurements, Recurring | Estimate of Fair Value | Short-term Investments | Certificates of deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	300	0	0
Fair Value, Measurements, Recurring | Estimate of Fair Value | Short-term Investments | U.S. Treasury notes | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	220	13	13
Fair Value, Measurements, Recurring | Estimate of Fair Value | Short-term Investments | Money market funds | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	96	105	83
Fair Value, Measurements, Recurring | Estimate of Fair Value | Short-term Investments | Corporate debt securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	49	23	12
Fair Value, Measurements, Recurring | Estimate of Fair Value | Short-term Investments | Agency securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	37	19	19
Fair Value, Measurements, Recurring | Estimate of Fair Value | Long-term Investments
Assets, Fair Value Disclosure
Investments	202	372	363
Fair Value, Measurements, Recurring | Estimate of Fair Value | Long-term Investments | U.S. Treasury notes | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	140	280	258
Fair Value, Measurements, Recurring | Estimate of Fair Value | Long-term Investments | Corporate debt securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	52	62	75
Fair Value, Measurements, Recurring | Estimate of Fair Value | Long-term Investments | Municipal obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	10	0	0
Fair Value, Measurements, Recurring | Estimate of Fair Value | Long-term Investments | Agency securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	0	30	30
Fair Value, Measurements, Recurring | Estimate of Fair Value | Other current liabilities
Liabilities, Fair Value Disclosure
Other current liabilities	9	11	0
Fair Value, Measurements, Recurring | Estimate of Fair Value | Other current liabilities | Forward interest rate swaps | Fair Value (Level 2)
Liabilities, Fair Value Disclosure
Other current liabilities	9	11	0
Fair Value, Measurements, Recurring | Estimate of Fair Value | Other noncurrent liabilities
Liabilities, Fair Value Disclosure
Total other liabilities	5	0	0
Fair Value, Measurements, Recurring | Estimate of Fair Value | Other noncurrent liabilities | Forward interest rate swaps | Fair Value (Level 2)
Liabilities, Fair Value Disclosure
Other liabilities	$ 5	$ 0	$ 0

Fair Value Measurements - Other

Fair Value Measurements - Other Fair Value Disclosures (Details) - USD ($) $ in Millions	Oct. 30, 2020	Jan. 31, 2020	Nov. 01, 2019
Financial Instruments
Long-term debt carrying value (excluding finance lease obligations)	$ 21,124	$ 16,653	$ 16,651
Unsecured Notes
Financial Instruments
Long-term debt carrying value (excluding finance lease obligations)	21,119	16,648	16,646
Mortgage Notes
Financial Instruments
Long-term debt carrying value (excluding finance lease obligations)	5	5	5
Estimate of Fair Value
Financial Instruments
Long-term debt fair value (excluding finance lease obligations)	24,345	18,814	18,189
Estimate of Fair Value | Unsecured Notes | Fair Value (Level 1)
Financial Instruments
Long-term debt fair value (excluding finance lease obligations)	24,340	18,808	18,184
Estimate of Fair Value | Mortgage Notes | Fair Value (Level 2)
Financial Instruments
Long-term debt fair value (excluding finance lease obligations)	$ 5	$ 6	$ 5

Exit Activities - Narrative (De

Exit Activities - Narrative (Details) - Canada Restructuring $ in Millions	3 Months Ended		9 Months Ended
	Jan. 31, 2020store	Nov. 01, 2019USD ($)	Nov. 01, 2019USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Costs Incurred		$ 53	$ 53
Number of stores to be closed | store	34
Long-lived asset impairments
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Costs Incurred		$ 53	$ 53

Exit Activities - Summary (Deta

Exit Activities - Summary (Details) - Canada Restructuring - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Nov. 01, 2019	Nov. 01, 2019
Restructuring Cost and Reserve
Costs Incurred	$ 53	$ 53
Long-lived asset impairments
Restructuring Cost and Reserve
Costs Incurred	$ 53	$ 53

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($)	1 Months Ended
	Mar. 31, 2020	Sep. 30, 2018	Oct. 30, 2020	Jan. 31, 2020	Nov. 01, 2019
Short-term Debt [Line Items]
Short-term borrowings			$ 0	$ 1,941,000,000	$ 637,000,000
Revolving Credit Facility
Short-term Debt [Line Items]
Maximum borrowing capacity			3,000,000,000
Outstanding borrowings			0		0
Revolving Credit Facility | 2020 Credit Agreement
Short-term Debt [Line Items]
Maximum borrowing capacity	$ 1,020,000,000
Debt instrument term	5 years
Revolving Credit Facility | 2019 Credit Agreement
Short-term Debt [Line Items]
Debt instrument term	364 days
Revolving Credit Facility | Second Amended And Restated Credit Agreement
Short-term Debt [Line Items]
Maximum borrowing capacity		$ 1,980,000,000
Debt instrument term		5 years
Commercial Paper [Member]
Short-term Debt [Line Items]
Short-term borrowings			$ 0		$ 637,000,000
Weighted average interest rate					1.97%

Long-Term Debt - Summary (Detai

Long-Term Debt - Summary (Details) - USD ($)	Oct. 22, 2020	Mar. 26, 2020
Unsecured Notes, 1.300%
Long-Term Debt
Principal Amount	$ 1,000,000,000
Interest Rate	1.30%
Discount	$ 5,000,000
Unsecured Notes, 1.700%
Long-Term Debt
Principal Amount	$ 1,250,000,000
Interest Rate	1.70%
Discount	$ 10,000,000
Unsecured Notes, 3.000%
Long-Term Debt
Principal Amount	$ 1,750,000,000
Interest Rate	3.00%
Discount	$ 17,000,000
Unsecured Notes, 4.000%
Long-Term Debt
Principal Amount		$ 750,000,000
Interest Rate		4.00%
Discount		$ 4,000,000
Unsecured Notes, 4.500%
Long-Term Debt
Principal Amount		$ 1,250,000,000
Interest Rate		4.50%
Discount		$ 12,000,000
Unsecured Notes, 5.000%
Long-Term Debt
Principal Amount		$ 750,000,000
Interest Rate		5.00%
Discount		$ 10,000,000
Unsecured Notes, 5.125%
Long-Term Debt
Principal Amount		$ 1,250,000,000
Interest Rate		5.125%
Discount		$ 13,000,000
Unsecured Notes
Long-Term Debt
Principal Amount	$ 4,000,000,000	$ 4,000,000,000

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Long-Term Debt
Loss on extinguishment of debt	$ 1,060	$ 0	$ 1,060	$ 0
Repayments of debt			$ 5,582	$ 1,092
2020 Combined Notes
Long-Term Debt
Debt instrument, redemption price, percentage			101.00%
2020 Cash Tender Offer
Long-Term Debt
Loss on extinguishment of debt	$ 1,100
Weighted average interest rate	4.80%		4.80%
Extinguishment of debt	$ 3,000

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019	Jan. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedges – net of tax	$ 24,000,000	$ (1,000,000)	$ (84,000,000)	$ (15,000,000)
Forward interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedges - tax (expense) benefit	(7,000,000)	0	28,000,000	6,000,000
Forward interest rate swaps | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivatives	638,000,000		638,000,000		$ 770,000,000
Cash flow hedges – net of tax	22,000,000	0	(85,000,000)	(15,000,000)
Reverse Treasury Lock | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivatives	2,000,000,000		2,000,000,000
Payments to counterparty	26,000,000		26,000,000
Interest expense | Forward interest rate swaps | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest – net	$ 3,000,000	$ 0	$ 7,000,000	$ 1,000,000

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details) - USD ($) shares in Millions	1 Months Ended	3 Months Ended			9 Months Ended
	Feb. 29, 2020	Oct. 30, 2020	May 01, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Share Repurchases
Cash used to repurchase shares					$ 1,528,000,000	$ 3,649,000,000
Share repurchase program
Share Repurchases
Remaining share repurchases authorization, value		$ 8,100,000,000			$ 8,100,000,000
Repurchase of common stock (in shares)		3.6		7.7	13.2	35.3
Share repurchases, cost		$ 617,000,000		$ 835,000,000	$ 1,557,000,000	$ 3,618,000,000
Accelerated Share Repurchase
Share Repurchases
Share repurchases authorized, value	$ 500,000,000
Cash used to repurchase shares	$ 500,000,000
Repurchase of common stock (in shares)	3.9		1.6
Open Market Purchases
Share Repurchases
Share repurchases (in shares)		3.6			7.7
Share repurchases, cost		$ 617,000,000			$ 1,100,000,000

Shareholders' Equity - Summary

Shareholders' Equity - Summary (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Share Repurchases
Reduction in retained earnings	$ 431	$ 827	$ 1,400	$ 3,500
Share repurchase program
Share Repurchases
Share repurchases (in shares)	3.6	7.7	13.2	35.3
Share repurchases, cost	$ 617	$ 835	$ 1,557	$ 3,618
Shares withheld from employees
Share Repurchases
Share repurchases (in shares)	0	0.2	0.1	0.3
Share repurchases, cost	$ 4	$ 23	$ 10	$ 36
Shares Repurchase Program And Shares Repurchased From Employees
Share Repurchases
Share repurchases (in shares)	3.6	7.9	13.3	35.6
Share repurchases, cost	$ 621	$ 858	$ 1,567	$ 3,654

Earnings Per Share - Summary (D

Earnings Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Basic earnings per common share:
Net earnings	$ 692	$ 1,049	$ 4,857	$ 3,771
Less: Net earnings allocable to participating securities	(3)	(3)	(20)	(11)
Net earnings allocable to common shares, basic	$ 689	$ 1,046	$ 4,837	$ 3,760
Weighted-average common shares outstanding (in shares)	752	769	753	782
Basic earnings per common share (in dollars per share)	$ 0.92	$ 1.36	$ 6.42	$ 4.81
Diluted earnings per common share:
Net earnings	$ 692	$ 1,049	$ 4,857	$ 3,771
Less: Net earnings allocable to participating securities	(3)	(3)	(20)	(11)
Net earnings allocable to common shares, diluted	$ 689	$ 1,046	$ 4,837	$ 3,760
Weighted-average common shares outstanding (in shares)	752	769	753	782
Dilutive effect of non-participating share-based awards (in shares)	2	1	1	1
Weighted-average common shares, as adjusted (in shares)	754	770	754	783
Diluted earnings per common share (in dollars per share)	$ 0.91	$ 1.36	$ 6.41	$ 4.80

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Earnings Per Share
Anti-dilutive securities (in shares)	0.3	0.9	0.1	0.9

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Income Taxes
Effective income tax rate	22.60%	24.00%	24.30%	22.20%

Supplemental Disclosure - Net I

Supplemental Disclosure - Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019	Oct. 30, 2020	Nov. 01, 2019
Net interest expense
Long-term debt	$ 213	$ 171	$ 610	$ 498
Finance lease obligations	8	7	25	21
Short-term borrowings	1	0	13	7
Interest income	(6)	(5)	(18)	(24)
Interest capitalized	0	0	0	(1)
Interest on tax uncertainties	0	0	0	(2)
Other	5	4	14	9
Interest – net	$ 221	$ 177	$ 644	$ 508

Supplemental Disclosure - Cash

Supplemental Disclosure - Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 30, 2020	Nov. 01, 2019
Supplemental disclosures of cash flow information
Cash paid for interest, net of amount capitalized	$ 750	$ 647
Cash paid for income taxes – net	1,357	1,029
Non-cash investing and financing activities:
Leased assets obtained in exchange for new finance lease liabilities	55	156
Leased assets obtained in exchange for new operating lease liabilities	355	374
Cash dividends declared but not paid	452	$ 423
Operating leases signed but not commenced	$ 565