Lowe's Companies (LOW) 10-Q 26 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jul. 30, 2021	Aug. 24, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 30, 2021
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		692,432,690
Entity Central Index Key	0000060667
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--01-28

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Current Earnings
Net sales	$ 27,570	$ 27,302	$ 51,993	$ 46,977
Cost of sales	18,258	17,998	34,551	31,161
Gross margin	9,312	9,304	17,442	15,816
Expenses:
Selling, general and administrative	4,693	5,020	9,187	9,215
Depreciation and amortization	409	327	800	653
Operating income	4,210	3,957	7,455	5,948
Interest – net	216	219	427	423
Pre-tax earnings	3,994	3,738	7,028	5,525
Income tax provision	976	910	1,688	1,360
Net earnings	$ 3,018	$ 2,828	$ 5,340	$ 4,165
Weighted-average common shares outstanding - basic (in shares)	705	752	711	754
Basic earnings per common share (in dollars per share)	$ 4.27	$ 3.74	$ 7.48	$ 5.50
Weighted-average common shares outstanding - diluted (in shares)	707	753	713	755
Diluted earnings per common share (in dollars per share)	$ 4.25	$ 3.74	$ 7.46	$ 5.50
Current Earnings (Percentages)
Net sales	100.00%	100.00%	100.00%	100.00%
Cost of sales	66.22%	65.92%	66.45%	66.33%
Gross margin	33.78%	34.08%	33.55%	33.67%
Expenses (Percentages):
Selling, general and administrative	17.02%	18.39%	17.67%	19.62%
Depreciation and amortization	1.49%	1.20%	1.54%	1.39%
Operating income	15.27%	14.49%	14.34%	12.66%
Interest – net	0.78%	0.80%	0.82%	0.90%
Pre-tax earnings	14.49%	13.69%	13.52%	11.76%
Income tax provision	3.54%	3.33%	3.25%	2.89%
Net earnings	10.95%	10.36%	10.27%	8.87%

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Comprehensive Income
Net earnings	$ 3,018	$ 2,828	$ 5,340	$ 4,165
Foreign currency translation adjustments – net of tax	(44)	114	58	(45)
Cash flow hedges – net of tax	(9)	(5)	15	(108)
Other	(1)	(1)	(2)	4
Other comprehensive (loss)/income	(54)	108	71	(149)
Comprehensive income	$ 2,964	$ 2,936	$ 5,411	$ 4,016
Comprehensive Income (Percentages)
Net earnings	10.95%	10.36%	10.27%	8.87%
Foreign currency translation adjustments – net of tax	(0.17%)	0.41%	0.11%	(0.10%)
Cash flow hedges – net of tax	(0.03%)	(0.02%)	0.03%	(0.23%)
Other	0.00%	0.00%	0.00%	0.01%
Other comprehensive (loss)/income	(0.20%)	0.39%	0.14%	(0.32%)
Comprehensive income	10.75%	10.75%	10.41%	8.55%

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Current assets:
Cash and cash equivalents	$ 4,835	$ 4,690	$ 11,641
Short-term investments	1,420	506	1,085
Merchandise inventory – net	17,322	16,193	13,831
Other current assets	1,506	937	1,160
Total current assets	25,083	22,326	27,717
Property, less accumulated depreciation	19,031	19,155	18,734
Operating lease right-of-use assets	3,820	3,832	3,798
Long-term investments	225	200	326
Deferred income taxes – net	221	340	267
Other assets	1,024	882	921
Total assets	49,404	46,735	51,763
Current liabilities:
Short-term borrowings	1,000	0	1,000
Current maturities of long-term debt	1,344	1,112	609
Current operating lease liabilities	557	541	520
Accounts payable	12,011	10,884	12,916
Accrued compensation and employee benefits	1,331	1,350	1,139
Deferred revenue	2,041	1,608	1,715
Other current liabilities	3,380	3,235	3,471
Total current liabilities	21,664	18,730	21,370
Long-term debt, excluding current maturities	21,967	20,668	20,197
Noncurrent operating lease liabilities	3,841	3,890	3,859
Deferred revenue – extended protection plans	1,097	1,019	981
Other liabilities	1,010	991	1,000
Total liabilities	49,579	45,298	47,407
Shareholders' (deficit)/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 – 699 million, 731 million, and 756 million shares, respectively	350	366	378
Capital in excess of par value	0	90	129
(Accumulated deficit)/retained earnings	(460)	1,117	4,134
Accumulated other comprehensive loss	(65)	(136)	(285)
Total shareholders' (deficit)/equity	(175)	1,437	4,356
Total liabilities and shareholders' (deficit)/equity	$ 49,404	$ 46,735	$ 51,763

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 5	$ 5	$ 5
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50	$ 0.50
Common stock, shares authorized (in shares)	5,600,000,000	5,600,000,000	5,600,000,000
Common stock, shares issued (in shares)	699,000,000	731,000,000	756,000,000
Common stock, shares outstanding (in shares)	699,000,000	731,000,000	756,000,000

Consolidated Statements of Shar

Consolidated Statements of Shareholders' (Deficit)/Equity (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings/ (Accumulated Deficit)	Accumulated Other Comprehensive Loss
Balance (in shares) at Jan. 31, 2020		763
Balance at Jan. 31, 2020	$ 1,972	$ 381	$ 0	$ 1,727	$ (136)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	4,165			4,165
Other comprehensive income (loss)	(149)				(149)
Cash dividends declared	(831)			(831)
Share-based payment expense	64		64
Repurchases of common stock (in shares)		(10)
Repurchases of common stock	(947)	$ (5)	(15)	(927)
Issuance of common stock under share-based payment plans (in shares)		3
Issuance of common stock under share-based payment plans	$ 82	$ 2	80
Balance (in shares) at Jul. 31, 2020	756	756
Balance at Jul. 31, 2020	$ 4,356	$ 378	129	4,134	(285)
Balance (in shares) at May. 01, 2020		755
Balance at May. 01, 2020	1,716	$ 377	10	1,722	(393)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	2,828			2,828
Other comprehensive income (loss)	108				108
Cash dividends declared	(416)			(416)
Share-based payment expense	41		41
Issuance of common stock under share-based payment plans (in shares)		1
Issuance of common stock under share-based payment plans	$ 79	$ 1	78
Balance (in shares) at Jul. 31, 2020	756	756
Balance at Jul. 31, 2020	$ 4,356	$ 378	129	4,134	(285)
Balance (in shares) at Jan. 29, 2021	731	731
Balance at Jan. 29, 2021	$ 1,437	$ 366	90	1,117	(136)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	5,340			5,340
Other comprehensive income (loss)	71				71
Cash dividends declared	(993)			(993)
Share-based payment expense	113		113
Repurchases of common stock (in shares)		(33)
Repurchases of common stock	(6,206)	$ (17)	(265)	(5,924)
Issuance of common stock under share-based payment plans (in shares)		1
Issuance of common stock under share-based payment plans	$ 63	$ 1	62
Balance (in shares) at Jul. 30, 2021	699	699
Balance at Jul. 30, 2021	$ (175)	$ 350	0	(460)	(65)
Balance (in shares) at Apr. 30, 2021		715
Balance at Apr. 30, 2021	445	$ 358	0	98	(11)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	3,018			3,018
Other comprehensive income (loss)	(54)				(54)
Cash dividends declared	(563)			(563)
Share-based payment expense	63		63
Repurchases of common stock (in shares)		(16)
Repurchases of common stock	(3,138)	$ (8)	(117)	(3,013)
Issuance of common stock under share-based payment plans (in shares)		0
Issuance of common stock under share-based payment plans	$ 54	$ 0	54
Balance (in shares) at Jul. 30, 2021	699	699
Balance at Jul. 30, 2021	$ (175)	$ 350	$ 0	$ (460)	$ (65)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity/Deficit (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends per share (in dollars per share)	$ 0.80	$ 0.55	$ 1.40	$ 1.10

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020
Cash flows from operating activities:
Net earnings	$ 5,340	$ 4,165
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	907	747
Noncash lease expense	252	234
Deferred income taxes	110	(14)
Loss on property and other assets – net	1	80
Share-based payment expense	115	64
Changes in operating assets and liabilities:
Merchandise inventory – net	(1,096)	(674)
Other operating assets	(203)	66
Accounts payable	1,115	5,259
Deferred revenue	511	583
Other operating liabilities	(139)	1,242
Net cash provided by operating activities	6,913	11,752
Cash flows from investing activities:
Purchases of investments	(1,635)	(1,132)
Proceeds from sale/maturity of investments	692	260
Capital expenditures	(846)	(710)
Proceeds from sale of property and other long-term assets	78	46
Other – net	(134)	(24)
Net cash used in investing activities	(1,845)	(1,560)
Cash flows from financing activities:
Net change in commercial paper	0	(941)
Net proceeds from issuance of debt	2,988	3,961
Repayment of debt	(568)	(568)
Proceeds from issuance of common stock under share-based payment plans	63	83
Cash dividend payments	(870)	(836)
Repurchases of common stock	(6,174)	(966)
Other – net	(366)	(4)
Net cash (used in) provided by financing activities	(4,927)	729
Effect of exchange rate changes on cash	4	4
Net increase in cash and cash equivalents	145	10,925
Cash and cash equivalents, beginning of period	4,690	716
Cash and cash equivalents, end of period	$ 4,835	$ 11,641

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jul. 30, 2021
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 July 30, 2021, and July 31, 2020, and the results of operations, comprehensive income, and shareholders’ (deficit)/equity for the three and six months ended July 30, 2021, and July 31, 2020, and cash flows for the six months ended July 30, 2021, and July 31, 2020. The January 29, 2021 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 29, 2021 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation, including the reclassification of excess property from other assets to property, less accumulated depreciation on the consolidated balance sheet as of July 31, 2020, and the separate disclosure of changes in deferred revenue within operating activities on the consolidated statement of cash flows for the six months ended July 31, 2020. 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, and subsequent clarifications, provide 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 currently 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 2020 Form 10-K are either not applicable to the Company or are not expected to have a material impact on the Company.

Revenue

Revenue	6 Months Ended
	Jul. 30, 2021
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 Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Products $ 26,365 $ 26,359 $ 49,887 $ 45,380 Services 629 508 1,209 907 Other 576 435 897 690 Net sales $ 27,570 $ 27,302 $ 51,993 $ 46,977 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. The balances and classification within the consolidated balance sheets for anticipated sales returns and the associated right of return assets are as follows: (In millions) Classification July 30, July 31, January 29, Anticipated sales returns Other current liabilities $ 303 $ 272 $ 252 Right of return assets Other current assets 194 173 164 Deferred revenue - retail and stored-value cards Retail deferred revenue consists of amounts received for which customers have not yet taken possession of the merchandise or for which installation has not yet been completed. The majority of revenue for goods and services is recognized in the quarter following revenue deferral. Stored-value cards deferred revenue includes outstanding stored-value cards such as gift cards and returned merchandise credits that have not yet been redeemed. Deferred revenue for retail and stored-value cards are as follows: (In millions) July 30, July 31, January 29, Retail deferred revenue $ 1,538 $ 1,282 $ 1,046 Stored-value cards deferred revenue 503 433 562 Deferred revenue $ 2,041 $ 1,715 $ 1,608 Deferred revenue - extended protection plans The Company defers revenues for its separately-priced long-term extended protection plan contracts and recognizes revenue on a straight-line basis over the respective contract term. Expenses for claims are recognized in cost of sales when incurred. (In millions) July 30, July 31, January 29, Deferred revenue - extended protection plans $ 1,097 $ 981 $ 1,019 Three Months Ended Six Months Ended (In millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Extended protection plan deferred revenue recognized into sales $ 120 $ 101 $ 237 $ 208 Extended protection plan claim expenses 44 42 97 78 Disaggregation of Revenues The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 (In millions) Net Sales % Net Sales % Net Sales % Net Sales % Home Décor 1 $ 9,163 33.2 % $ 8,714 31.9 % $ 17,473 33.6 % $ 15,678 33.4 % Hardlines 2 9,083 33.0 10,066 36.9 16,868 32.5 % 16,483 35.1 % Building Products 3 8,638 31.3 7,993 29.3 16,543 31.8 % 13,952 29.7 % Other 686 2.5 529 1.9 1,109 2.1 % 864 1.8 % Total $ 27,570 100.0 % $ 27,302 100.0 % $ 51,993 100.0 % $ 46,977 100.0 % 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 Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools 3 Building Products includes the following product categories: Building Materials, Electrical, Lighting, Lumber, Millwork, and Rough Plumbing The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 United States $ 25,655 $ 25,561 $ 48,587 $ 44,321 Canada 1,915 1,741 3,406 2,656 Net Sales $ 27,570 $ 27,302 $ 51,993 $ 46,977

Investments

Investments	6 Months Ended
	Jul. 30, 2021
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 July 30, 2021, July 31, 2020, and January 29, 2021, were not material. Refer to Note 4 for the fair value of the Company’s available-for-sale debt securities by investment type. Held to maturity securities are U.S. Treasury bills which the Company has the ability and intent to hold until maturity and are stated at amortized cost. Gross unrecognized holding gains and losses on the Company’s held-to-maturity securities were not material for the period ended July 31, 2020. The Company’s investments are as follows: (In millions) July 30, 2021 July 31, 2020 January 29, 2021 Short-term investments: Available-for-sale debt securities $ 1,420 $ 435 $ 506 Held-to-maturity securities — 650 — Total short-term investments $ 1,420 $ 1,085 $ 506 Long-term investments: Available-for-sale debt securities $ 225 $ 326 $ 200 Total long-term investments $ 225 $ 326 $ 200 Restricted Investments Short-term and long-term investments include restricted balances pledged as collateral primarily for the Company’s extended protection plan program and are as follows: (In millions) July 30, 2021 July 31, 2020 January 29, 2021 Short-term restricted investments $ 520 $ 260 $ 506 Long-term restricted investments 225 326 200 Total restricted investments $ 745 $ 586 $ 706

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 30, 2021
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 July 30, 2021, July 31, 2020, and January 29, 2021: Fair Value Measurements at (In millions) Measurement Level July 30, July 31, January 29, Assets: Short-term investments: Available-for-sale debt securities Certificates of deposit Level 1 $ 959 $ 175 $ — U.S Treasury securities Level 1 139 104 223 Money market funds Level 1 131 98 109 Commercial paper Level 2 117 — 97 Corporate debt securities Level 2 50 35 47 Agency securities Level 2 14 23 30 Foreign government debt securities Level 2 10 — — Total short-term investments $ 1,420 $ 435 $ 506 Long-term investments: Available-for-sale debt securities U.S. Treasury securities Level 1 $ 148 $ 250 $ 129 Corporate debt securities Level 2 49 61 58 Foreign government debt securities Level 2 15 — — Municipal obligations Level 2 13 — 13 Agency securities Level 2 — 15 — Total long-term investments $ 225 $ 326 $ 200 Other assets: Derivative instruments Fixed-to-floating interest rate swaps Level 2 $ 3 $ — $ — Forward interest rate swaps Level 2 2 — 4 Total other assets $ 5 $ — $ 4 Liabilities: Other current liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 3 $ 20 $ 8 Total other current liabilities $ 3 $ 20 $ 8 Other liabilities: Derivative instruments Forward interest rate swaps Level 2 $ — $ 21 $ — Total other liabilities $ — $ 21 $ — 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 six months ended July 30, 2021, and July 31, 2020, 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. As further described in Note 8 , certain long-term debt is associated with a fair value hedge and reflected in the financial statements at fair value. 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: July 30, 2021 July 31, 2020 January 29, 2021 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 22,592 $ 25,705 $ 20,109 $ 24,998 $ 21,121 $ 24,349 Mortgage notes (Level 2) 5 5 5 5 5 5 Long-term debt (excluding finance lease obligations) $ 22,597 $ 25,710 $ 20,114 $ 25,003 $ 21,126 $ 24,354

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jul. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets - Goodwill and intangible assets resulting from acquisitions are recorded within other assets on the consolidated balance sheets and are evaluated for impairment annually on the first day of the fourth quarter or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. The carrying amount of goodwill as well as the gross carrying amount and accumulated amortization of intangible assets consist of the following: July 30, 2021 July 31, 2020 January 29, 2021 (In millions) Gross Accumulated Gross Accumulated Gross Accumulated Goodwill $ 311 $ — $ 311 $ — $ 311 $ — Definite-lived intangible assets: Customer-related 1 $ 347 $ (80) $ 367 $ (89) $ 372 $ (99) Trademarks and trade names 1 267 (126) 254 (82) 264 (119) Other 1 (1) 12 (12) 12 (11) Total definite-lived intangible assets $ 615 $ (207) $ 633 $ (183) $ 648 $ (229) Indefinite-lived intangible assets: Trademark 2 $ 134 $ — $ — $ — $ — $ — Total intangible assets $ 749 $ (207) $ 633 $ (183) $ 648 $ (229) 1 Certain definite-lived intangible assets are denominated in a foreign currency and subject to translation. 2 In April 2021, the Company acquired the STAINMASTER ® brand for total consideration of $134 million, which was determined to have an indefinite life.

Short-Term Borrowings

Short-Term Borrowings	6 Months Ended
	Jul. 30, 2021
Debt Disclosure [Abstract]
Short-Term Borrowings	Short-Term Borrowings - Commercial Paper Program The $1.02 billion five-year unsecured revolving credit agreement entered into in March 2020 (2020 Credit Agreement) and the $1.98 billion five-year unsecured second amended and restated credit agreement (Second Amended and Restated Credit Agreement) entered into in September 2018 support 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 July 30, 2021, July 31, 2020, and January 29, 2021, there were no outstanding borrowings under the Company’s commercial paper program, the 2020 Credit Agreement, or the Second Amended and Restated Credit Agreement. Total combined availability under the 2020 Credit Agreement and the Second Amended and Restated Credit Agreement was $3.0 billion as of July 30, 2021. Other Short-Term Borrowings

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jul. 30, 2021
Long-Term Debt
Long-Term Debt	Long-Term Debt - On March 31, 2021, the Company issued $2.0 billion of unsecured fixed rate notes (2021 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount $ 1,500 April 2031 2.625% $ 7 $ 500 April 2051 3.500% $ 5 Interest on the 2021 Notes is payable semiannually in arrears in April and October of each year until maturity.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jul. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments - The Company utilizes forward interest rate swap agreements to hedge its exposure to changes in benchmark interest rates on forecasted debt issuances. The Company also utilizes fixed-to-floating interest rate swap agreements as fair value hedges on certain debt. The notional amounts for the Company’s material derivative instruments are as follows: (In millions) July 30, July 31, January 29, Cash flow hedges: Forward interest rate swap agreement notional amounts $ 1,975 $ 638 $ 638 Fair value hedges: Fixed-to-floating interest rate swap agreement notional amounts $ 450 $ — $ — 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 settlement of the Company’s hedging derivative financial instruments are classified in the consolidated statements of cash flows based on the nature of the underlying hedged items. The Company accounts for the forward interest rate swap contracts as cash flow hedges, thus the effective portion of gains and losses resulting from changes in fair value are recognized in other comprehensive (loss)/income, 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)/income and earnings for the three and six months ended July 30, 2021, and July 31, 2020, including its line item in the financial statements, is as follows: (In millions) Three Months Ended Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Other comprehensive (loss)/income Cash flow hedges – net of tax benefit/(expense) of $5 million, $1 million, $(4) million, and $35 million, respectively $ (16) $ (3) $ 12 $ (107) Net earnings Interest – net $ 3 $ 3 $ 5 $ 4

Shareholders' (Deficit)_Equity

Shareholders' (Deficit)/Equity	6 Months Ended
	Jul. 30, 2021
Shareholders' Equity
Shareholders' (Deficit)/Equity	Shareholders’ (Deficit)/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 returned to authorized and unissued status. As of July 30, 2021, the Company had $13.6 billion remaining in its share repurchase program. In February 2021, the Company entered into an Accelerated Share Repurchase (ASR) agreement with a third-party financial institution to repurchase $2.0 billion of the Company’s common stock. In addition, in May 2021, the Company entered into a variable notional ASR agreement with a third-party financial institution to repurchase $2.1 billion of the Company’s common stock. The terms of the ASR agreements entered into during the six months ended July 30, 2021, are as follows (in millions): Agreement Execution Agreement Settlement ASR Minimum Notional Amount 1 Maximum Notional Amount 1 Cash Payment Received at Settlement 1 Initial Shares Delivered at Inception Additional Shares Delivered at Settlement Total Shares Delivered Q1 2021 Q1 2021 $ 2,000 $ — $ — $ — 10.7 0.2 10.9 Q2 2021 Q2 2021 $ 2,132 1,750 2,500 368 7.2 4.0 11.2 1 The Company entered into a variable notional ASR agreement with a third-party financial institution to repurchase between a minimum notional amount and a maximum notional amount. At inception of each transaction, the Company paid the maximum notional amount and received shares. The Company finalized the transaction and received additional shares prior to the end of the second quarter. The Company reflected the difference in the prepayment amount (maximum notional amount) and the final notional amount of $368 million as a receivable in other current assets in the consolidated balance sheet as of July 30, 2021, and other financing – net in the consolidated statement of cash flows for the six months ended July 30, 2021. The balance was received in cash from the third-party financial institution subsequent to the end of the second quarter. In addition, the Company repurchased shares of its common stock through the open market as follows: Three Months Ended Six Months Ended July 30, 2021 July 30, 2021 (In millions) Shares Cost Shares Cost Open market share repurchases 5.2 $ 1,000 10.7 $ 2,000 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 six months ended July 30, 2021, and July 31, 2020, were as follows: Three Months Ended July 30, 2021 July 31, 2020 (In millions) Shares Cost 1 Shares Cost Share repurchase program 16.4 $ 3,132 — $ — Shares withheld from employees — 7 — — Total share repurchases 16.4 $ 3,139 — $ — 1 Reduction of $3.0 billion was recorded to (accumulated deficit)/retained earnings, after capital in excess of par value was depleted, for the three months ended July 30, 2021. Six Months Ended July 30, 2021 July 31, 2020 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 32.8 $ 6,132 9.5 $ 940 Shares withheld from employees 0.4 74 0.1 7 Total share repurchases 33.2 $ 6,206 9.6 $ 947 1 Reductions of $5.9 billion and $927 million were recorded to (accumulated deficit)/retained earnings, after capital in excess of par value was depleted, for the six months ended July 30, 2021 and July 31, 2020, respectively.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 30, 2021
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 six months ended July 30, 2021, and July 31, 2020: Three Months Ended Six Months Ended (In millions, except per share data) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Basic earnings per common share: Net earnings $ 3,018 $ 2,828 $ 5,340 $ 4,165 Less: Net earnings allocable to participating securities (11) (12) (22) (16) Net earnings allocable to common shares, basic $ 3,007 $ 2,816 $ 5,318 $ 4,149 Weighted-average common shares outstanding 705 752 711 754 Basic earnings per common share $ 4.27 $ 3.74 $ 7.48 $ 5.50 Diluted earnings per common share: Net earnings $ 3,018 $ 2,828 $ 5,340 $ 4,165 Less: Net earnings allocable to participating securities (11) (12) (22) (16) Net earnings allocable to common shares, diluted $ 3,007 $ 2,816 $ 5,318 $ 4,149 Weighted-average common shares outstanding 705 752 711 754 Dilutive effect of non-participating share-based awards 2 1 2 1 Weighted-average common shares, as adjusted 707 753 713 755 Diluted earnings per common share $ 4.25 $ 3.74 $ 7.46 $ 5.50 Anti-dilutive securities excluded from diluted weighted-average common shares 0.3 0.0 0.3 0.7

Income Taxes

Income Taxes	6 Months Ended
	Jul. 30, 2021
Income Taxes
Income Taxes	Income Taxes - The Company’s effective income tax rates were 24.4% and 24.0% for the three and six months ended July 30, 2021, respectively, and 24.4% and 24.6% for the three and six months ended July 31, 2020, respectively. The decrease in the effective tax rate for the six months ended July 30, 2021, is primarily due to excess tax benefits associated with vesting and exercises of share based compensation.

Supplemental Disclosure

Supplemental Disclosure	6 Months Ended
	Jul. 30, 2021
Supplemental Disclosure
Supplemental Disclosure	Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended Six Months Ended (In millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Long-term debt $ 205 $ 211 $ 406 $ 398 Lease obligations 8 8 15 17 Short-term borrowings 1 2 1 12 Interest income (3) (8) (7) (12) Interest capitalized (1) — (1) — Interest on tax uncertainties (1) — (1) — Other 7 6 14 8 Interest – net $ 216 $ 219 $ 427 $ 423 Supplemental disclosures of cash flow information: Six Months Ended (In millions) July 30, 2021 July 31, 2020 Cash paid for interest, net of amount capitalized $ 437 $ 369 Cash paid for income taxes – net $ 1,546 $ 670 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 97 $ 53 Leased assets obtained in exchange for new operating lease liabilities 1 $ 224 $ 193 Cash dividends declared but not paid $ 563 $ 416 1 Excludes $587 million of leases signed but not yet commenced as of July 30, 2021.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 30, 2021
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 July 30, 2021, and July 31, 2020, and the results of operations, comprehensive income, and shareholders’ (deficit)/equity for the three and six months ended July 30, 2021, and July 31, 2020, and cash flows for the six months ended July 30, 2021, and July 31, 2020. The January 29, 2021 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 29, 2021 (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 reclassification of excess property from other assets to property, less accumulated depreciation on the consolidated balance sheet as of July 31, 2020, and the separate disclosure of changes in deferred revenue within operating activities on the consolidated statement of cash flows for the six months ended July 31, 2020.
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, and subsequent clarifications, provide 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 currently 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 2020 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)	6 Months Ended
	Jul. 30, 2021
Revenue Recognition
Sources of Revenue	The following table presents the Company’s sources of revenue: (In millions) Three Months Ended Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Products $ 26,365 $ 26,359 $ 49,887 $ 45,380 Services 629 508 1,209 907 Other 576 435 897 690 Net sales $ 27,570 $ 27,302 $ 51,993 $ 46,977
Anticipated Sales Return And Right of Return Assets	The balances and classification within the consolidated balance sheets for anticipated sales returns and the associated right of return assets are as follows: (In millions) Classification July 30, July 31, January 29, Anticipated sales returns Other current liabilities $ 303 $ 272 $ 252 Right of return assets Other current assets 194 173 164
Schedule of Deferred Revenue	Deferred revenue for retail and stored-value cards are as follows: (In millions) July 30, July 31, January 29, Retail deferred revenue $ 1,538 $ 1,282 $ 1,046 Stored-value cards deferred revenue 503 433 562 Deferred revenue $ 2,041 $ 1,715 $ 1,608 Deferred revenue - extended protection plans The Company defers revenues for its separately-priced long-term extended protection plan contracts and recognizes revenue on a straight-line basis over the respective contract term. Expenses for claims are recognized in cost of sales when incurred. (In millions) July 30, July 31, January 29, Deferred revenue - extended protection plans $ 1,097 $ 981 $ 1,019 Three Months Ended Six Months Ended (In millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Extended protection plan deferred revenue recognized into sales $ 120 $ 101 $ 237 $ 208 Extended protection plan claim expenses 44 42 97 78
Disaggregation of Revenues	The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 (In millions) Net Sales % Net Sales % Net Sales % Net Sales % Home Décor 1 $ 9,163 33.2 % $ 8,714 31.9 % $ 17,473 33.6 % $ 15,678 33.4 % Hardlines 2 9,083 33.0 10,066 36.9 16,868 32.5 % 16,483 35.1 % Building Products 3 8,638 31.3 7,993 29.3 16,543 31.8 % 13,952 29.7 % Other 686 2.5 529 1.9 1,109 2.1 % 864 1.8 % Total $ 27,570 100.0 % $ 27,302 100.0 % $ 51,993 100.0 % $ 46,977 100.0 % 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 Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools
Net Sales Disaggregated by Geographical Area	The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 United States $ 25,655 $ 25,561 $ 48,587 $ 44,321 Canada 1,915 1,741 3,406 2,656 Net Sales $ 27,570 $ 27,302 $ 51,993 $ 46,977

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jul. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Summary of Investments	The Company’s investments are as follows: (In millions) July 30, 2021 July 31, 2020 January 29, 2021 Short-term investments: Available-for-sale debt securities $ 1,420 $ 435 $ 506 Held-to-maturity securities — 650 — Total short-term investments $ 1,420 $ 1,085 $ 506 Long-term investments: Available-for-sale debt securities $ 225 $ 326 $ 200 Total long-term investments $ 225 $ 326 $ 200
Schedule of Restricted Investments	Short-term and long-term investments include restricted balances pledged as collateral primarily for the Company’s extended protection plan program and are as follows: (In millions) July 30, 2021 July 31, 2020 January 29, 2021 Short-term restricted investments $ 520 $ 260 $ 506 Long-term restricted investments 225 326 200 Total restricted investments $ 745 $ 586 $ 706

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 30, 2021
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 July 30, 2021, July 31, 2020, and January 29, 2021: Fair Value Measurements at (In millions) Measurement Level July 30, July 31, January 29, Assets: Short-term investments: Available-for-sale debt securities Certificates of deposit Level 1 $ 959 $ 175 $ — U.S Treasury securities Level 1 139 104 223 Money market funds Level 1 131 98 109 Commercial paper Level 2 117 — 97 Corporate debt securities Level 2 50 35 47 Agency securities Level 2 14 23 30 Foreign government debt securities Level 2 10 — — Total short-term investments $ 1,420 $ 435 $ 506 Long-term investments: Available-for-sale debt securities U.S. Treasury securities Level 1 $ 148 $ 250 $ 129 Corporate debt securities Level 2 49 61 58 Foreign government debt securities Level 2 15 — — Municipal obligations Level 2 13 — 13 Agency securities Level 2 — 15 — Total long-term investments $ 225 $ 326 $ 200 Other assets: Derivative instruments Fixed-to-floating interest rate swaps Level 2 $ 3 $ — $ — Forward interest rate swaps Level 2 2 — 4 Total other assets $ 5 $ — $ 4 Liabilities: Other current liabilities: Derivative instruments Forward interest rate swaps Level 2 $ 3 $ 20 $ 8 Total other current liabilities $ 3 $ 20 $ 8 Other liabilities: Derivative instruments Forward interest rate swaps Level 2 $ — $ 21 $ — Total other liabilities $ — $ 21 $ —
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: July 30, 2021 July 31, 2020 January 29, 2021 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 22,592 $ 25,705 $ 20,109 $ 24,998 $ 21,121 $ 24,349 Mortgage notes (Level 2) 5 5 5 5 5 5 Long-term debt (excluding finance lease obligations) $ 22,597 $ 25,710 $ 20,114 $ 25,003 $ 21,126 $ 24,354

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jul. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	The carrying amount of goodwill as well as the gross carrying amount and accumulated amortization of intangible assets consist of the following: July 30, 2021 July 31, 2020 January 29, 2021 (In millions) Gross Accumulated Gross Accumulated Gross Accumulated Goodwill $ 311 $ — $ 311 $ — $ 311 $ — Definite-lived intangible assets: Customer-related 1 $ 347 $ (80) $ 367 $ (89) $ 372 $ (99) Trademarks and trade names 1 267 (126) 254 (82) 264 (119) Other 1 (1) 12 (12) 12 (11) Total definite-lived intangible assets $ 615 $ (207) $ 633 $ (183) $ 648 $ (229) Indefinite-lived intangible assets: Trademark 2 $ 134 $ — $ — $ — $ — $ — Total intangible assets $ 749 $ (207) $ 633 $ (183) $ 648 $ (229) 1 Certain definite-lived intangible assets are denominated in a foreign currency and subject to translation. 2 In April 2021, the Company acquired the STAINMASTER ® brand for total consideration of $134 million, which was determined to have an indefinite life.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jul. 30, 2021
Long-Term Debt
Schedule of Unsecured Notes Issued	On March 31, 2021, the Company issued $2.0 billion of unsecured fixed rate notes (2021 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount $ 1,500 April 2031 2.625% $ 7 $ 500 April 2051 3.500% $ 5

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jul. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Notional Amount of Derivative Instruments	The notional amounts for the Company’s material derivative instruments are as follows: (In millions) July 30, July 31, January 29, Cash flow hedges: Forward interest rate swap agreement notional amounts $ 1,975 $ 638 $ 638 Fair value hedges: Fixed-to-floating interest rate swap agreement notional amounts $ 450 $ — $ —
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)/income and earnings for the three and six months ended July 30, 2021, and July 31, 2020, including its line item in the financial statements, is as follows: (In millions) Three Months Ended Six Months Ended July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Other comprehensive (loss)/income Cash flow hedges – net of tax benefit/(expense) of $5 million, $1 million, $(4) million, and $35 million, respectively $ (16) $ (3) $ 12 $ (107) Net earnings Interest – net $ 3 $ 3 $ 5 $ 4

Shareholders' (Deficit)_Equity

Shareholders' (Deficit)/Equity (Tables)	6 Months Ended
	Jul. 30, 2021
Shareholders' Equity
Accelerated Share Repurchases	The terms of the ASR agreements entered into during the six months ended July 30, 2021, are as follows (in millions): Agreement Execution Agreement Settlement ASR Minimum Notional Amount 1 Maximum Notional Amount 1 Cash Payment Received at Settlement 1 Initial Shares Delivered at Inception Additional Shares Delivered at Settlement Total Shares Delivered Q1 2021 Q1 2021 $ 2,000 $ — $ — $ — 10.7 0.2 10.9 Q2 2021 Q2 2021 $ 2,132 1,750 2,500 368 7.2 4.0 11.2 1 The Company entered into a variable notional ASR agreement with a third-party financial institution to repurchase between a minimum notional amount and a maximum notional amount. At inception of each transaction, the Company paid the maximum notional amount and received shares. The Company finalized the transaction and received additional shares prior to the end of the second quarter. The Company reflected the difference in the prepayment amount (maximum notional amount) and the final notional amount of $368 million as a receivable in other current assets in the consolidated balance sheet as of July 30, 2021, and other financing – net in the consolidated statement of cash flows for the six months ended July 30, 2021. The balance was received in cash from the third-party financial institution subsequent to the end of the second quarter.
Repurchase of Common Stock Through the Open Market	In addition, the Company repurchased shares of its common stock through the open market as follows: Three Months Ended Six Months Ended July 30, 2021 July 30, 2021 (In millions) Shares Cost Shares Cost Open market share repurchases 5.2 $ 1,000 10.7 $ 2,000
Schedule of Share Repurchases	Shares repurchased for the three and six months ended July 30, 2021, and July 31, 2020, were as follows: Three Months Ended July 30, 2021 July 31, 2020 (In millions) Shares Cost 1 Shares Cost Share repurchase program 16.4 $ 3,132 — $ — Shares withheld from employees — 7 — — Total share repurchases 16.4 $ 3,139 — $ — 1 Reduction of $3.0 billion was recorded to (accumulated deficit)/retained earnings, after capital in excess of par value was depleted, for the three months ended July 30, 2021. Six Months Ended July 30, 2021 July 31, 2020 (In millions) Shares Cost 1 Shares Cost 1 Share repurchase program 32.8 $ 6,132 9.5 $ 940 Shares withheld from employees 0.4 74 0.1 7 Total share repurchases 33.2 $ 6,206 9.6 $ 947 1 Reductions of $5.9 billion and $927 million were recorded to (accumulated deficit)/retained earnings, after capital in excess of par value was depleted, for the six months ended July 30, 2021 and July 31, 2020, respectively.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 30, 2021
Earnings Per Share
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles earnings per common share for the three and six months ended July 30, 2021, and July 31, 2020: Three Months Ended Six Months Ended (In millions, except per share data) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Basic earnings per common share: Net earnings $ 3,018 $ 2,828 $ 5,340 $ 4,165 Less: Net earnings allocable to participating securities (11) (12) (22) (16) Net earnings allocable to common shares, basic $ 3,007 $ 2,816 $ 5,318 $ 4,149 Weighted-average common shares outstanding 705 752 711 754 Basic earnings per common share $ 4.27 $ 3.74 $ 7.48 $ 5.50 Diluted earnings per common share: Net earnings $ 3,018 $ 2,828 $ 5,340 $ 4,165 Less: Net earnings allocable to participating securities (11) (12) (22) (16) Net earnings allocable to common shares, diluted $ 3,007 $ 2,816 $ 5,318 $ 4,149 Weighted-average common shares outstanding 705 752 711 754 Dilutive effect of non-participating share-based awards 2 1 2 1 Weighted-average common shares, as adjusted 707 753 713 755 Diluted earnings per common share $ 4.25 $ 3.74 $ 7.46 $ 5.50 Anti-dilutive securities excluded from diluted weighted-average common shares 0.3 0.0 0.3 0.7

Supplemental Disclosure (Tables

Supplemental Disclosure (Tables)	6 Months Ended
	Jul. 30, 2021
Supplemental Disclosure
Net Interest Expense	Net interest expense is comprised of the following: Three Months Ended Six Months Ended (In millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Long-term debt $ 205 $ 211 $ 406 $ 398 Lease obligations 8 8 15 17 Short-term borrowings 1 2 1 12 Interest income (3) (8) (7) (12) Interest capitalized (1) — (1) — Interest on tax uncertainties (1) — (1) — Other 7 6 14 8 Interest – net $ 216 $ 219 $ 427 $ 423
Supplemental Disclosures of Cash Flow Information	Supplemental disclosures of cash flow information: Six Months Ended (In millions) July 30, 2021 July 31, 2020 Cash paid for interest, net of amount capitalized $ 437 $ 369 Cash paid for income taxes – net $ 1,546 $ 670 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 97 $ 53 Leased assets obtained in exchange for new operating lease liabilities 1 $ 224 $ 193 Cash dividends declared but not paid $ 563 $ 416 1 Excludes $587 million of leases signed but not yet commenced as of July 30, 2021.

Revenue - Sources of Revenue (D

Revenue - Sources of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 27,570	$ 27,302	$ 51,993	$ 46,977
Products
Disaggregation of Revenue [Line Items]
Net sales	26,365	26,359	49,887	45,380
Services
Disaggregation of Revenue [Line Items]
Net sales	629	508	1,209	907
Other
Disaggregation of Revenue [Line Items]
Net sales	$ 576	$ 435	$ 897	$ 690

Revenue - Anticipated Sales Ret

Revenue - Anticipated Sales Returns (Details) - USD ($) $ in Millions	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Revenue Recognition
Anticipated sales returns	$ 303	$ 252	$ 272
Right of return assets	$ 194	$ 164	$ 173

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Millions	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Revenue Recognition
Retail deferred revenue	$ 1,538	$ 1,046	$ 1,282
Stored-value cards deferred revenue	503	562	433
Deferred revenue	$ 2,041	$ 1,608	$ 1,715

Revenue - Extended Protection P

Revenue - Extended Protection Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020	Jan. 29, 2021
Revenue from Contract with Customer [Abstract]
Deferred revenue – extended protection plans	$ 1,097	$ 981	$ 1,097	$ 981	$ 1,019
Extended protection plan deferred revenue recognized into sales	120	101	237	208
Extended protection plan claim expenses	$ 44	$ 42	$ 97	$ 78

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 27,570	$ 27,302	$ 51,993	$ 46,977
Net sales	100.00%	100.00%	100.00%	100.00%
United States
Disaggregation of Revenue [Line Items]
Net sales	$ 25,655	$ 25,561	$ 48,587	$ 44,321
Canada
Disaggregation of Revenue [Line Items]
Net sales	1,915	1,741	3,406	2,656
Home Decor
Disaggregation of Revenue [Line Items]
Net sales	$ 9,163	$ 8,714	$ 17,473	$ 15,678
Net sales	33.20%	31.90%	33.60%	33.40%
Hardlines
Disaggregation of Revenue [Line Items]
Net sales	$ 9,083	$ 10,066	$ 16,868	$ 16,483
Net sales	33.00%	36.90%	32.50%	35.10%
Building Products
Disaggregation of Revenue [Line Items]
Net sales	$ 8,638	$ 7,993	$ 16,543	$ 13,952
Net sales	31.30%	29.30%	31.80%	29.70%
Other
Disaggregation of Revenue [Line Items]
Net sales	$ 686	$ 529	$ 1,109	$ 864
Net sales	2.50%	1.90%	2.10%	1.80%

Investments - Summary (Details)

Investments - Summary (Details) - USD ($) $ in Millions	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Short-term investments:
Available-for-sale debt securities	$ 1,420	$ 506	$ 435
Held-to-maturity securities	0	0	650
Total short-term investments	1,420	506	1,085
Long-term investments:
Available-for-sale debt securities	225	200	326
Total long-term investments	$ 225	$ 200	$ 326

Investments - Restricted Invest

Investments - Restricted Investment Balances (Details) - USD ($) $ in Millions	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Short-term restricted investments	$ 520	$ 506	$ 260
Long-term restricted investments	225	200	326
Total restricted investments	$ 745	$ 706	$ 586

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - Estimate of Fair Value - USD ($) $ in Millions	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Short-term Investments
Assets, Fair Value Disclosure
Investments	$ 1,420	$ 506	$ 435
Short-term Investments | Certificates of deposit | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	959	0	175
Short-term Investments | U.S Treasury securities | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	139	223	104
Short-term Investments | Money market funds | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	131	109	98
Short-term Investments | Commercial paper | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	117	97	0
Short-term Investments | Corporate debt securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	50	47	35
Short-term Investments | Agency securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	14	30	23
Short-term Investments | Foreign government debt securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	10	0	0
Long-term Investments
Assets, Fair Value Disclosure
Investments	225	200	326
Long-term Investments | U.S Treasury securities | Fair Value (Level 1)
Assets, Fair Value Disclosure
Investments	148	129	250
Long-term Investments | Corporate debt securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	49	58	61
Long-term Investments | Agency securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	0	0	15
Long-term Investments | Foreign government debt securities | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	15	0	0
Long-term Investments | Municipal obligations | Fair Value (Level 2)
Assets, Fair Value Disclosure
Investments	13	13	0
Other Assets
Assets, Fair Value Disclosure
Other assets:	5	4	0
Other Assets | Fixed-to-floating interest rate swaps | Fair Value (Level 2)
Assets, Fair Value Disclosure
Other assets:	3	0	0
Other Assets | Forward interest rate swaps | Fair Value (Level 2)
Assets, Fair Value Disclosure
Other assets:	2	4	0
Other current liabilities
Liabilities, Fair Value Disclosure
Other current liabilities:	3	8	20
Other current liabilities | Forward interest rate swaps | Fair Value (Level 2)
Liabilities, Fair Value Disclosure
Other current liabilities:	3	8	20
Other noncurrent liabilities
Liabilities, Fair Value Disclosure
Other liabilities:	0	0	21
Other noncurrent liabilities | Forward interest rate swaps | Fair Value (Level 2)
Liabilities, Fair Value Disclosure
Other liabilities:	$ 0	$ 0	$ 21

Fair Value Measurements - Other

Fair Value Measurements - Other Fair Value Disclosures (Details) - USD ($) $ in Millions	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Financial Instruments
Long-term debt carrying value (excluding finance lease obligations)	$ 22,597	$ 21,126	$ 20,114
Unsecured Notes
Financial Instruments
Long-term debt carrying value (excluding finance lease obligations)	22,592	21,121	20,109
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)	25,710	24,354	25,003
Estimate of Fair Value | Unsecured Notes | Fair Value (Level 1)
Financial Instruments
Long-term debt fair value (excluding finance lease obligations)	25,705	24,349	24,998
Estimate of Fair Value | Mortgage Notes | Fair Value (Level 2)
Financial Instruments
Long-term debt fair value (excluding finance lease obligations)	$ 5	$ 5	$ 5

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Summary (Details) - USD ($) $ in Millions	1 Months Ended
	Apr. 30, 2021	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill		$ 311	$ 311	$ 311
Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets		615	648	633
Accumulated Amortization		(207)	(229)	(183)
Indefinite-lived Intangible Assets [Line Items]
Total intangible assets		749	648	633
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets:		134	0	0
Trademarks | STAINMASTER
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets acquired	$ 134
Customer-related
Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets		347	372	367
Accumulated Amortization		(80)	(99)	(89)
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets		267	264	254
Accumulated Amortization		(126)	(119)	(82)
Other
Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets		1	12	12
Accumulated Amortization		$ (1)	$ (11)	$ (12)

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($)	1 Months Ended
	Apr. 30, 2021	Mar. 31, 2020	Sep. 30, 2018	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020
Short-term Debt [Line Items]
Short-term borrowings				$ 1,000,000,000	$ 0	$ 1,000,000,000
2021 Term Loan
Short-term Debt [Line Items]
Debt instrument term	364 days
Maximum borrowing capacity	$ 1,000,000,000
Short-term borrowings				$ 1,000,000,000
Weighted average interest rate				0.79%
Revolving Credit Facility
Short-term Debt [Line Items]
Maximum borrowing capacity				$ 3,000,000,000
Outstanding borrowings				$ 0	$ 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 | Second Amended And Restated Credit Agreement
Short-term Debt [Line Items]
Maximum borrowing capacity			$ 1,980,000,000
Debt instrument term			5 years

Long-Term Debt - Summary (Detai

Long-Term Debt - Summary (Details) - USD ($)	6 Months Ended
	Jul. 30, 2021	Mar. 31, 2021
Unsecured Notes Issued In 2021
Long-Term Debt
Debt instrument, redemption price, percentage	101.00%
Unsecured Notes, 2.625%
Long-Term Debt
Principal Amount		$ 1,500,000,000
Interest Rate		2.625%
Discount		$ 7,000,000
Unsecured Notes, 3.500%
Long-Term Debt
Principal Amount		$ 500,000,000
Interest Rate		3.50%
Discount		$ 5,000,000
Unsecured Notes | Unsecured Notes Issued In 2021
Long-Term Debt
Principal Amount		$ 2,000,000,000

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020	Jan. 29, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedges – net of tax	$ (9)	$ (5)	$ 15	$ (108)
Forward interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedges - tax (expense) benefit	5	1	(4)	35
Forward interest rate swaps | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedges – net of tax	(16)	(3)	12	(107)
Forward interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivatives	1,975	638	1,975	638	$ 638
Fixed-to-floating interest rate swaps | Designated as Hedging Instrument | Fair Value Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivatives	450	0	450	0	$ 0
Interest expense | Forward interest rate swaps | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest – net	$ 3	$ 3	$ 5	$ 4

Shareholders' (Deficit)_Equit_2

Shareholders' (Deficit)/Equity -Share Repurchases (Details) - USD ($) shares in Millions	3 Months Ended			6 Months Ended
	Jul. 30, 2021	Apr. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020	May 31, 2021	Feb. 28, 2021
Share repurchase program
Share Repurchases
Remaining share repurchases authorization, value	$ 13,600,000,000			$ 13,600,000,000
Share repurchases, cost	3,132,000,000		$ 0	6,132,000,000	$ 940,000,000
Accelerated Share Repurchase
Share Repurchases
ASR Agreement Amount	2,132,000,000	$ 2,000,000,000		2,132,000,000		$ 2,100,000,000	$ 2,000,000,000
Cash Payment Received at Settlement	$ 368,000,000			$ 368,000,000
Initial Shares Delivered at Inception	7.2	10.7
Additional Shares Delivered at Settlement	4	0.2
Total Shares Delivered	11.2	10.9
Accelerated Share Repurchase | Minimum
Share Repurchases
Notional amount	$ 1,750,000,000
Accelerated Share Repurchase | Maximum
Share Repurchases
Notional amount	$ 2,500,000,000
Open Market Purchases
Share Repurchases
Share repurchases (in shares)	5.2			10.7
Share repurchases, cost	$ 1,000,000,000			$ 2,000,000,000

Shareholders' (Deficit)_Equit_3

Shareholders' (Deficit)/Equity - Summary (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Share Repurchases
Reduction in retained earnings	$ 3,000		$ 5,900	$ 927
Share repurchase program
Share Repurchases
Share repurchases (in shares)	16.4	0	32.8	9.5
Share repurchases, cost	$ 3,132	$ 0	$ 6,132	$ 940
Shares withheld from employees
Share Repurchases
Share repurchases (in shares)	0	0	0.4	0.1
Share repurchases, cost	$ 7	$ 0	$ 74	$ 7
Shares Repurchase Program And Shares Repurchased From Employees
Share Repurchases
Share repurchases (in shares)	16.4	0	33.2	9.6
Share repurchases, cost	$ 3,139	$ 0	$ 6,206	$ 947

Earnings Per Share - Summary (D

Earnings Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Basic earnings per common share:
Net earnings	$ 3,018	$ 2,828	$ 5,340	$ 4,165
Less: Net earnings allocable to participating securities	(11)	(12)	(22)	(16)
Net earnings allocable to common shares, basic	$ 3,007	$ 2,816	$ 5,318	$ 4,149
Weighted-average common shares outstanding (in shares)	705	752	711	754
Basic earnings per common share (in dollars per share)	$ 4.27	$ 3.74	$ 7.48	$ 5.50
Diluted earnings per common share:
Net earnings	$ 3,018	$ 2,828	$ 5,340	$ 4,165
Less: Net earnings allocable to participating securities	(11)	(12)	(22)	(16)
Net earnings allocable to common shares, diluted	$ 3,007	$ 2,816	$ 5,318	$ 4,149
Weighted-average common shares outstanding (in shares)	705	752	711	754
Dilutive effect of non-participating share-based awards (in shares)	2	1	2	1
Weighted-average common shares, as adjusted (in shares)	707	753	713	755
Diluted earnings per common share (in dollars per share)	$ 4.25	$ 3.74	$ 7.46	$ 5.50
Anti-dilutive securities (in shares)	0.3	0	0.3	0.7

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Income Taxes
Effective income tax rate	24.40%	24.40%	24.00%	24.60%

Supplemental Disclosure - Net I

Supplemental Disclosure - Net Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 30, 2021	Jul. 31, 2020
Net interest expense
Long-term debt	$ 205	$ 211	$ 406	$ 398
Lease obligations	8	8	15	17
Short-term borrowings	1	2	1	12
Interest income	(3)	(8)	(7)	(12)
Interest capitalized	(1)	0	(1)	0
Interest on tax uncertainties	(1)	0	(1)	0
Other	7	6	14	8
Interest – net	$ 216	$ 219	$ 427	$ 423

Supplemental Disclosure - Cash

Supplemental Disclosure - Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 30, 2021	Jul. 31, 2020
Supplemental disclosures of cash flow information
Cash paid for interest, net of amount capitalized	$ 437	$ 369
Cash paid for income taxes – net	1,546	670
Non-cash investing and financing activities:
Leased assets obtained in exchange for new finance lease liabilities	97	53
Leased assets obtained in exchange for new operating lease liabilities	224	193
Cash dividends declared but not paid	563	$ 416
Operating leases signed but not commenced	$ 587