Cover Page
Cover Page - shares | 9 Months Ended | |
Nov. 03, 2023 | Nov. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 03, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-7898 | |
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 $0.50 per share | |
Trading Symbol | LOW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 575,112,600 | |
Entity Registrant Name | LOWES COMPANIES INC | |
Entity Central Index Key | 0000060667 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --02-02 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Current Earnings | ||||
Net sales | $ 20,471 | $ 23,479 | $ 67,775 | $ 74,614 |
Cost of sales | 13,580 | 15,661 | 44,958 | 49,614 |
Gross margin | 6,891 | 7,818 | 22,817 | 25,000 |
Expenses: | ||||
Selling, general and administrative | 3,761 | 6,443 | 11,673 | 15,200 |
Depreciation and amortization | 434 | 451 | 1,275 | 1,345 |
Operating income | 2,696 | 924 | 9,869 | 8,455 |
Interest – net | 345 | 295 | 1,033 | 802 |
Pre-tax earnings | 2,351 | 629 | 8,836 | 7,653 |
Income tax provision | 578 | 475 | 2,130 | 2,174 |
Net earnings | $ 1,773 | $ 154 | $ 6,706 | $ 5,479 |
Weighted-average common shares outstanding - basic (in shares) | 576 | 618 | 585 | 638 |
Basic earnings per common share (in dollars per share) | $ 3.07 | $ 0.25 | $ 11.43 | $ 8.56 |
Weighted-average common shares outstanding - diluted (in shares) | 577 | 620 | 587 | 640 |
Diluted earnings per common share (in dollars per share) | $ 3.06 | $ 0.25 | $ 11.40 | $ 8.53 |
Current Earnings (Percentages) | ||||
Net sales | 100% | 100% | 100% | 100% |
Cost of sales | 66.34% | 66.70% | 66.33% | 66.49% |
Gross margin | 33.66% | 33.30% | 33.67% | 33.51% |
Expenses (Percentages): | ||||
Selling, general and administrative | 18.37% | 27.45% | 17.23% | 20.38% |
Depreciation and amortization | 2.12% | 1.92% | 1.88% | 1.80% |
Operating income | 13.17% | 3.93% | 14.56% | 11.33% |
Interest – net | 1.68% | 1.25% | 1.52% | 1.07% |
Pre-tax earnings | 11.49% | 2.68% | 13.04% | 10.26% |
Income tax provision | 2.83% | 2.02% | 3.14% | 2.92% |
Net earnings | 8.66% | 0.66% | 9.90% | 7.34% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Comprehensive Income | ||||
Net earnings | $ 1,773 | $ 154 | $ 6,706 | $ 5,479 |
Foreign currency translation adjustments – net of tax | 0 | (168) | 5 | (173) |
Cash flow hedges – net of tax | (4) | 170 | (10) | 352 |
Other | 0 | 1 | 0 | (3) |
Other comprehensive (loss)/income | (4) | 3 | (5) | 176 |
Comprehensive income | $ 1,769 | $ 157 | $ 6,701 | $ 5,655 |
Comprehensive Income (Percentages) | ||||
Net earnings | 8.66% | 0.66% | 9.90% | 7.34% |
Foreign currency translation adjustments – net of tax | 0% | (0.72%) | 0.01% | (0.23%) |
Cash flow hedges – net of tax | (0.01%) | 0.72% | (0.02%) | 0.47% |
Other | 0% | 0% | 0% | 0% |
Other comprehensive (loss)/income | (0.01%) | 0% | (0.01%) | 0.24% |
Comprehensive income | 8.65% | 0.66% | 9.89% | 7.58% |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 1,210 | $ 1,348 | $ 3,192 |
Short-term investments | 321 | 384 | 464 |
Merchandise inventory – net | 17,530 | 18,532 | 19,817 |
Other current assets | 907 | 1,178 | 1,518 |
Total current assets | 19,968 | 21,442 | 24,991 |
Property, less accumulated depreciation | 17,527 | 17,567 | 17,275 |
Operating lease right-of-use assets | 3,647 | 3,518 | 3,512 |
Long-term investments | 238 | 121 | 63 |
Deferred income taxes – net | 280 | 250 | 301 |
Other assets | 859 | 810 | 831 |
Total assets | 42,519 | 43,708 | 46,973 |
Current liabilities: | |||
Short-term borrowings | 0 | 499 | 0 |
Current maturities of long-term debt | 544 | 585 | 609 |
Current operating lease liabilities | 533 | 522 | 651 |
Accounts payable | 9,914 | 10,524 | 12,249 |
Accrued compensation and employee benefits | 750 | 1,109 | 1,405 |
Deferred revenue | 1,499 | 1,603 | 1,736 |
Income taxes payable | 121 | 1,181 | 913 |
Other current liabilities | 3,135 | 3,488 | 3,313 |
Total current liabilities | 16,496 | 19,511 | 20,876 |
Long-term debt, excluding current maturities | 35,374 | 32,876 | 32,904 |
Noncurrent operating lease liabilities | 3,602 | 3,512 | 4,048 |
Deferred revenue – Lowe's protection plans | 1,228 | 1,201 | 1,184 |
Other liabilities | 966 | 862 | 829 |
Total liabilities | 57,666 | 57,962 | 59,841 |
Shareholders' deficit: | |||
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 – 575 million, 601 million, and 611 million shares, respectively | 288 | 301 | 305 |
Capital in excess of par value | 7 | 0 | 0 |
Accumulated deficit | (15,744) | (14,862) | (13,313) |
Accumulated other comprehensive income | 302 | 307 | 140 |
Total shareholders' deficit | (15,147) | (14,254) | (12,868) |
Total liabilities and shareholders' deficit | $ 42,519 | $ 43,708 | $ 46,973 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
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) | 575,000,000 | 601,000,000 | 611,000,000 |
Common stock, shares outstanding (in shares) | 575,000,000 | 601,000,000 | 611,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance (in shares) at Jan. 28, 2022 | 670 | ||||
Beginning balance at Jan. 28, 2022 | $ (4,816) | $ 335 | $ 0 | $ (5,115) | $ (36) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 5,479 | 5,479 | |||
Other comprehensive income (loss) | 176 | 176 | |||
Cash dividends declared | (1,833) | (1,833) | |||
Share-based payment expense | 161 | 161 | |||
Repurchases of common stock (in shares) | (61) | ||||
Repurchases of common stock | (12,122) | $ (31) | (247) | (11,844) | |
Issuance of common stock under share-based payment plans (in shares) | 2 | ||||
Issuance of common stock under share-based payment plans | $ 87 | $ 1 | 86 | ||
Ending balance (in shares) at Oct. 28, 2022 | 611 | 611 | |||
Ending balance at Oct. 28, 2022 | $ (12,868) | $ 305 | 0 | (13,313) | 140 |
Beginning balance (in shares) at Jul. 29, 2022 | 631 | ||||
Beginning balance at Jul. 29, 2022 | (8,442) | $ 316 | 0 | (8,895) | 137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 154 | 154 | |||
Other comprehensive income (loss) | 3 | 3 | |||
Cash dividends declared | (643) | (643) | |||
Share-based payment expense | 51 | 51 | |||
Repurchases of common stock (in shares) | (20) | ||||
Repurchases of common stock | (4,004) | $ (11) | (64) | (3,929) | |
Issuance of common stock under share-based payment plans | $ 13 | 13 | |||
Ending balance (in shares) at Oct. 28, 2022 | 611 | 611 | |||
Ending balance at Oct. 28, 2022 | $ (12,868) | $ 305 | 0 | (13,313) | 140 |
Beginning balance (in shares) at Feb. 03, 2023 | 601 | 601 | |||
Beginning balance at Feb. 03, 2023 | $ (14,254) | $ 301 | 0 | (14,862) | 307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 6,706 | 6,706 | |||
Other comprehensive income (loss) | (5) | (5) | |||
Cash dividends declared | (1,898) | (1,898) | |||
Share-based payment expense | 155 | 155 | |||
Repurchases of common stock (in shares) | (28) | ||||
Repurchases of common stock | (5,930) | $ (14) | (226) | (5,690) | |
Issuance of common stock under share-based payment plans (in shares) | 2 | ||||
Issuance of common stock under share-based payment plans | $ 79 | $ 1 | 78 | ||
Ending balance (in shares) at Nov. 03, 2023 | 575 | 575 | |||
Ending balance at Nov. 03, 2023 | $ (15,147) | $ 288 | 7 | (15,744) | 302 |
Beginning balance (in shares) at Aug. 04, 2023 | 582 | ||||
Beginning balance at Aug. 04, 2023 | (14,732) | $ 291 | 12 | (15,341) | 306 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 1,773 | 1,773 | |||
Other comprehensive income (loss) | (4) | (4) | |||
Cash dividends declared | (633) | (633) | |||
Share-based payment expense | 42 | 42 | |||
Repurchases of common stock (in shares) | (7) | ||||
Repurchases of common stock | (1,596) | $ (3) | (50) | (1,543) | |
Issuance of common stock under share-based payment plans | $ 3 | 3 | |||
Ending balance (in shares) at Nov. 03, 2023 | 575 | 575 | |||
Ending balance at Nov. 03, 2023 | $ (15,147) | $ 288 | $ 7 | $ (15,744) | $ 302 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Deficit (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 1.10 | $ 1.05 | $ 3.25 | $ 2.90 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Nov. 03, 2023 | Oct. 28, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 6,706 | $ 5,479 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 1,427 | 1,509 |
Noncash lease expense | 370 | 403 |
Deferred income taxes | (27) | (252) |
Asset impairment and loss on property – net | 50 | 2,113 |
Gain on sale of business | (79) | 0 |
Share-based payment expense | 160 | 165 |
Changes in operating assets and liabilities: | ||
Merchandise inventory – net | 1,002 | (2,308) |
Other operating assets | 236 | 20 |
Accounts payable | (610) | 921 |
Deferred revenue | (77) | (117) |
Other operating liabilities | (2,126) | 205 |
Net cash provided by operating activities | 7,032 | 8,138 |
Cash flows from investing activities: | ||
Purchases of investments | (1,283) | (659) |
Proceeds from sale/maturity of investments | 1,215 | 597 |
Capital expenditures | (1,344) | (1,090) |
Proceeds from sale of property and other long-term assets | 29 | 37 |
Proceeds from sale of business | 100 | 0 |
Other – net | (23) | 0 |
Net cash used in investing activities | (1,306) | (1,115) |
Cash flows from financing activities: | ||
Net change in commercial paper | (499) | 0 |
Net proceeds from issuance of debt | 2,983 | 9,667 |
Repayment of debt | (576) | (831) |
Proceeds from issuance of common stock under share-based payment plans | 79 | 86 |
Cash dividend payments | (1,899) | (1,727) |
Repurchases of common stock | (5,937) | (12,127) |
Other – net | (15) | 0 |
Net cash used in financing activities | (5,864) | (4,932) |
Effect of exchange rate changes on cash | 0 | (32) |
Net (decrease)/increase in cash and cash equivalents | (138) | 2,059 |
Cash and cash equivalents, beginning of period | 1,348 | 1,133 |
Cash and cash equivalents, end of period | $ 1,210 | $ 3,192 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 03, 2023 | |
Accounting Policies [Abstract] | |
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 consolidated balance sheets as of November 3, 2023, and October 28, 2022, and the statements of earnings, comprehensive income, and shareholders’ deficit for the three and nine months ended November 3, 2023, and October 28, 2022, and cash flows for the nine months ended November 3, 2023, and October 28, 2022. The February 3, 2023, 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 February 3, 2023 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025, and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. Recent accounting pronouncements pending adoption not discussed in this Form 10-Q or in the 2022 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 |
Nov. 03, 2023 | |
Revenue from Contract with Customer [Abstract] | |
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 November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Products $ 19,599 $ 22,511 $ 65,204 $ 71,872 Services 517 568 1,623 1,692 Other 355 400 948 1,050 Net sales $ 20,471 $ 23,479 $ 67,775 $ 74,614 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 November 3, October 28, February 3, Anticipated sales returns Other current liabilities $ 241 $ 302 $ 234 Right of return assets Other current assets 140 183 139 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) November 3, October 28, February 3, Retail deferred revenue $ 984 $ 1,168 $ 933 Stored-value cards deferred revenue 515 568 670 Deferred revenue $ 1,499 $ 1,736 $ 1,603 Deferred revenue - Lowe’s protection plans The Company defers revenues for its separately-priced long-term extended protection plan contracts (Lowe’s protection plans) 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) November 3, October 28, February 3, Deferred revenue - Lowe’s protection plans $ 1,228 $ 1,184 $ 1,201 Three Months Ended Nine Months Ended (In millions) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Lowe’s protection plans deferred revenue recognized into sales $ 139 $ 133 $ 411 $ 389 Lowe’s protection plans claim expenses 64 40 171 134 Disaggregation of Revenues The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended Nine Months Ended November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 (In millions) Net Sales % Net Sales % Net Sales % Net Sales % Home Décor 1 $ 7,799 38.1 % $ 9,019 38.4 % $ 24,763 36.5 % $ 27,227 36.5 % Building Products 2 6,812 33.3 7,854 33.4 20,990 31.0 24,135 32.3 Hardlines 3 5,230 25.5 5,905 25.1 20,249 29.9 21,351 28.6 Other 630 3.1 702 3.1 1,773 2.6 1,901 2.6 Total $ 20,471 100.0 % $ 23,479 100.0 % $ 67,775 100.0 % $ 74,614 100.0 % 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, 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 November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 United States $ 20,471 $ 22,280 $ 67,775 $ 70,524 Canada 1 — 1,200 — 4,090 Net sales $ 20,471 $ 23,479 $ 67,775 $ 74,614 1 The Canadian retail business was sold on February 3, 2023. |
Restricted Investments
Restricted Investments | 9 Months Ended |
Nov. 03, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Restricted Investments | Restricted Investments Short-term and long-term investments include restricted balances pledged as collateral primarily for the Lowe’s protection plans program and are as follows: (In millions) November 3, 2023 October 28, 2022 February 3, 2023 Short-term restricted investments $ 321 $ 464 $ 384 Long-term restricted investments 238 63 100 Total restricted investments $ 559 $ 527 $ 484 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Nov. 03, 2023 | |
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 November 3, 2023, October 28, 2022, and February 3, 2023: Fair Value Measurements at (In millions) Classification Measurement Level November 3, October 28, February 3, Available-for-sale debt securities: U.S. Treasury securities Short-term investments Level 1 $ 143 $ 216 $ 157 Corporate debt securities Short-term investments Level 2 62 51 78 Money market funds Short-term investments Level 1 49 133 43 Certificates of deposit Short-term investments Level 1 35 7 40 Commercial paper Short-term investments Level 2 30 43 52 Municipal obligations Short-term investments Level 2 2 — — Foreign government debt securities Short-term investments Level 2 — 14 14 U.S. Treasury securities Long-term investments Level 1 215 31 86 Corporate debt securities Long-term investments Level 2 23 30 12 Municipal obligations Long-term investments Level 2 — 2 2 Derivative instruments: Forward interest rate swaps Other current assets Level 2 $ — $ 303 $ 251 Fixed-to-floating interest rate swaps Other liabilities Level 2 92 98 88 Other financial instruments: Contingent consideration Long-term investments Level 3 $ — $ — $ 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, financial assets were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values for financial assets and liabilities classified within Level 2 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. The performance-based contingent consideration is related to the fiscal 2022 sale of the Canadian retail business and is classified as a Level 3 long-term investment. The Company determined the initial fair value of contingent consideration as of February 3, 2023, based on an income approach using an option pricing model, calculated using significant unobservable inputs such as total equity value, volatility, and expected term. Subsequent measurements of fair value of the contingent consideration are based on an income approach, which requires certain assumptions considering operating performance of the business and a risk-adjusted discount rate. Changes in the estimated fair value of the contingent consideration are recognized as gain or loss included within selling, general and administrative expenses (SG&A) in the consolidated statements of earnings. The rollforward of the fair value of contingent consideration for the three and nine months ended November 3, 2023, is as follows: Three Months Ended Nine Months Ended (In millions) November 3, 2023 November 3, 2023 Beginning balance $ — $ 21 Change in fair value — 102 Proceeds received — (123) Ending balance $ — $ — Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis During the three and nine months ended November 3, 2023, the Company had no material measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. During the three and nine months ended October 28, 2022, the Company’s only significant assets measured at fair value on a nonrecurring basis subsequent to their initial recognition were certain long-lived assets as further described below. The Company reviews the carrying amounts of long-lived assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. When evaluating long-lived assets for impairment, the asset group is generally at an individual location level, as that is the lowest level for which cash flows are identifiable. Cash flows for individual locations do not include an allocation of corporate overhead. The Company evaluates long-lived assets for triggering events on a quarterly basis to determine when assets may not be recoverable. An impairment loss is recognized when the carrying amount of the asset (disposal) group is not recoverable and exceeds its fair value. The Company estimates the fair values of assets subject to long-lived asset impairment based on the Company’s own judgments about the assumptions that market participants would use in pricing the assets and on observable market data, when available. The Company classifies these fair value measurements as Level 3. During the three months ended October 28, 2022, the Company determined it was more likely than not that the assets within the Canadian retail business would be sold or otherwise disposed of significantly before the end of their previously estimated useful lives, and these assets were evaluated for recoverability. Based on the proposed transaction, the Company reconsidered the appropriate asset grouping of long-lived assets attributable to the Company’s Canadian locations given the change in the Company’s expectations regarding use and disposition of its associated assets. The Company determined the total Canadian retail business (Canada asset group) to be the appropriate asset group for which the long-lived assets should be evaluated, as this represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The carrying value of the Canada asset group includes substantially all assets and liabilities of the Canadian retail business, including accounts receivable, inventory, property, operating and finance lease right-of-use assets, definite-lived intangible assets, operating liabilities including accounts payable and accrued compensation, and operating and finance lease liabilities. A market approach of an orderly transaction under current market conditions was used in determining the estimated fair value of the Canada asset group, which was based on the proposed transaction price, inclusive of performance-based contingent consideration. The estimated fair value of the Canada asset group was determined to be $421 million. As a result, the Company recorded $2.1 billion of long-lived asset impairment within SG&A in the consolidated statements of earnings, which reflected the full carrying value of the long-lived assets of the Canada asset group as of October 28, 2022. The following table presents the Company’s impairment losses resulting from non-financial assets measured at estimated fair value on a nonrecurring basis included in earnings for the three and nine months ended October 28, 2022: Three Months Ended Nine Months Ended (In millions) October 28, 2022 October 28, 2022 Canada asset group: Property, less accumulated depreciation $ 1,258 $ 1,258 Operating lease right-of-use assets 621 621 Other assets 182 182 Other 7 35 Total $ 2,068 $ 2,096 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, 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. As further described in Note 7 , certain long-term debt is associated with a fair value hedge and the changes in fair value of the hedged debt is included in the carrying value of long-term debt in the consolidated balance sheets. 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: November 3, 2023 October 28, 2022 February 3, 2023 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 35,387 $ 30,207 $ 32,886 $ 27,879 $ 32,897 $ 30,190 Mortgage notes (Level 2) 2 2 4 4 2 2 Long-term debt (excluding finance lease obligations) $ 35,389 $ 30,209 $ 32,890 $ 27,883 $ 32,899 $ 30,192 |
Accounts Payable
Accounts Payable | 9 Months Ended |
Nov. 03, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable | Accounts Payable The Company has agreements with third parties to provide supplier finance programs which facilitate participating suppliers’ ability to finance payment obligations from the Company with designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s outstanding payment obligations that suppliers financed to participating financial institutions, which are included in accounts payable on the consolidated balance sheets, are as follows: (In millions) November 3, 2023 October 28, 2022 February 3, 2023 Financed payment obligations $ 1,640 $ 2,635 $ 2,257 |
Debt
Debt | 9 Months Ended |
Nov. 03, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Commercial Paper Program In September 2023, the Company entered into an amended and restated $2.0 billion five-year unsecured revolving credit agreement (2023 Credit Agreement), which amended and restated the Company’s $2.0 billion five-year unsecured revolving credit agreement entered into in March 2020, and as amended (2020 Credit Agreement), to extend the term until September 2028. The 2023 Credit Agreement, along with the $2.0 billion five-year unsecured third amended and restated credit agreement entered into in December 2021, and as amended (Third Amended and Restated Credit Agreement), support the Company’s commercial paper program. The amounts available to be drawn under the 2023 Credit Agreement and the Third Amended and Restated Credit Agreement are reduced by the amount of borrowings under the commercial paper program. As of November 3, 2023, there were no outstanding borrowings under the Company’s commercial paper program, the 2023 Credit Agreement, or the Third Amended and Restated Credit Agreement. As of October 28, 2022, there were no outstanding borrowings under the Company’s commercial paper program, the 2020 Credit Agreement, or the Third Amended and Restated Credit Agreement. As of February 3, 2023, there were $499 million of outstanding borrowings under the Company’s commercial paper program with a weighted average interest rate of 4.78%. There were no outstanding borrowings under the Company’s 2020 Credit Agreement or the Third Amended and Restated Credit Agreement as of February 3, 2023. Total combined availability under the 2023 Credit Agreement and the Third Amended and Restated Credit Agreement was $4.0 billion as of November 3, 2023. Long-Term Debt On March 30, 2023, the Company issued $3.0 billion of unsecured fixed rate notes (March 2023 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount $ 1,000 April 2026 4.800% $ 3 $ 1,000 July 2033 5.150% $ 4 $ 500 July 2053 5.750% $ 5 $ 500 April 2063 5.850% $ 5 Interest on the March 2023 Notes with April maturity dates is payable semiannually in arrears in April and October of each year until maturity. Interest on the March 2023 Notes with July maturity dates is payable semiannually in arrears in January and July of each year until maturity. The indenture governing the March 2023 Notes contains 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 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Nov. 03, 2023 | |
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) November 3, October 28, February 3, Cash flow hedges: Forward interest rate swap agreement notional amounts $ — $ 1,210 $ 1,290 Fair value hedges: Fixed-to-floating interest rate swap agreement notional amounts $ 850 $ 850 $ 850 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. Cash Flow Hedges 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 amortized to interest expense over the term of the respective debt. In connection with the issuance of our March 2023 Notes, we settled forward interest rate swap contracts with a combined notional amount of $2.0 billion and received a payment of $247 million. The (loss)/gain from forward interest rate swap agreements, both settled and outstanding, designated as cash flow hedges recorded in other comprehensive (loss)/income and net earnings for the three and nine months ended November 3, 2023, and October 28, 2022, including its line item in the financial statements, is as follows: (In millions) Three Months Ended Nine Months Ended November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Other comprehensive (loss)/income: Cash flow hedges – net of tax benefit/(expense) of $1 million, ($55) million, $4 million, and ($116) million, respectively $ (4) $ 166 $ (10) $ 350 Net earnings: Interest – net $ 4 $ 1 $ 11 $ — Fair Value Hedges |
Shareholders' Deficit
Shareholders' Deficit | 9 Months Ended |
Nov. 03, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Deficit | Shareholders’ Deficit 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. Any excess of cost over par value is charged to additional paid-in capital to the extent that a balance is present. Once additional paid-in capital is fully depleted, remaining excess of cost over par value is charged to accumulated deficit. As of November 3, 2023, the Company had $15.0 billion remaining in its share repurchase program. During the nine months ended November 3, 2023, the Company entered into Accelerated Share Repurchase (ASR) agreements with third-party financial institutions to repurchase a total of 15.4 million shares of the Company’s common stock for $3.3 billion. The terms of the ASR agreements entered into during the nine months ended November 3, 2023, are as follows (in millions): Agreement Execution Agreement Settlement ASR Initial Shares Delivered at Inception Additional Shares Delivered at Settlement Total Shares Delivered Q1 2023 Q1 2023 $ 750 3.1 0.7 3.8 Q2 2023 Q2 2023 1,000 3.9 0.7 4.6 Q3 2023 Q3 2023 1,500 5.3 1.7 7.0 In addition, the Company repurchased shares of its common stock through the open market as follows: Three Months Ended Nine Months Ended November 3, 2023 November 3, 2023 (In millions) Shares Cost Shares Cost Open market share repurchases 0.3 $ 95 11.9 $ 2,545 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. Total shares repurchased for the three and nine months ended November 3, 2023, and October 28, 2022, were as follows: Three Months Ended November 3, 2023 October 28, 2022 (In millions) Shares Cost Shares Cost Share repurchase program 1 7.3 $ 1,595 20.5 $ 4,000 Shares withheld from employees — 1 — 3 Total share repurchases 7.3 $ 1,596 20.5 $ 4,003 Nine Months Ended November 3, 2023 October 28, 2022 (In millions) Shares Cost Shares Cost Share repurchase program 1 27.3 $ 5,795 60.6 $ 12,000 Shares withheld from employees 0.7 135 0.6 122 Total share repurchases 28.0 $ 5,930 61.2 $ 12,122 1 Beginning January 1, 2023, share repurchases in excess of issuances are subject to a 1% excise tax, which is included as part of the cost basis of the shares acquired. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Nov. 03, 2023 | |
Earnings Per Share [Abstract] | |
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 November 3, 2023, and October 28, 2022: Three Months Ended Nine Months Ended (In millions, except per share data) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Basic earnings per common share: Net earnings $ 1,773 $ 154 $ 6,706 $ 5,479 Less: Net earnings allocable to participating securities (4) (2) (18) (17) Net earnings allocable to common shares, basic $ 1,769 $ 152 $ 6,688 $ 5,462 Three Months Ended Nine Months Ended (In millions, except per share data) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Weighted-average common shares outstanding 576 618 585 638 Basic earnings per common share $ 3.07 $ 0.25 $ 11.43 $ 8.56 Diluted earnings per common share: Net earnings $ 1,773 $ 154 $ 6,706 $ 5,479 Less: Net earnings allocable to participating securities (4) (2) (18) (17) Net earnings allocable to common shares, diluted $ 1,769 $ 152 $ 6,688 $ 5,462 Weighted-average common shares outstanding 576 618 585 638 Dilutive effect of non-participating share-based awards 1 2 2 2 Weighted-average common shares, as adjusted 577 620 587 640 Diluted earnings per common share $ 3.06 $ 0.25 $ 11.40 $ 8.53 Anti-dilutive securities excluded from diluted weighted-average common shares 0.6 0.6 0.5 0.5 |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 03, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rates were 24.6% and 24.1% for the three and nine months ended November 3, 2023, respectively, and 75.5% and 28.4% for the three and nine months ended October 28, 2022, respectively. The decrease in the effective tax rate for the three months ended November 3, 2023, is primarily due to the prior year impact of the increase in the valuation allowance for deferred taxes related to the long-lived asset impairment associated with RONA inc. Income Tax Relief On October 5, 2022, the Internal Revenue Service announced that businesses in certain states, including North Carolina, affected by Hurricane Ian would receive tax relief by postponing certain tax-payment deadlines. Under this relief, the Company’s quarterly federal estimated income tax payments originally due by October 15, 2022 and January 15, 2023, were deferred until February 15, 2023. As of October 28, 2022, and February 3, 2023, the Company deferred $600 million and $1.2 billion, respectively, of federal income taxes payable, which are included in income taxes payable in the consolidated balance sheet. |
Supplemental Disclosure
Supplemental Disclosure | 9 Months Ended |
Nov. 03, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Disclosure | Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended Nine Months Ended (In millions) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Long-term debt $ 365 $ 295 $ 1,075 $ 782 Short-term borrowings — 4 15 5 Lease obligations 6 7 19 21 Interest income (27) (14) (78) (21) Interest capitalized (1) (1) (4) (3) Interest on tax uncertainties — — — 3 Other 2 4 6 15 Interest – net $ 345 $ 295 $ 1,033 $ 802 Supplemental disclosures of cash flow information: Nine Months Ended (In millions) November 3, 2023 October 28, 2022 Cash paid for interest, net of amount capitalized $ 1,415 $ 909 Cash paid for income taxes – net 3,163 1,540 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 46 $ 46 Leased assets obtained in exchange for new operating lease liabilities 1 497 465 Cash dividends declared but not paid 633 643 1 Excludes $260 million of leases signed but not yet commenced as of November 3, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings | $ 1,773 | $ 154 | $ 6,706 | $ 5,479 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Nov. 03, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 03, 2023 | |
Accounting Policies [Abstract] | |
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 consolidated balance sheets as of November 3, 2023, and October 28, 2022, and the statements of earnings, comprehensive income, and shareholders’ deficit for the three and nine months ended November 3, 2023, and October 28, 2022, and cash flows for the nine months ended November 3, 2023, and October 28, 2022. The February 3, 2023, 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 February 3, 2023 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025, and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. Recent accounting pronouncements pending adoption not discussed in this Form 10-Q or in the 2022 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 |
Nov. 03, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Sources | The following table presents the Company’s sources of revenue: (In millions) Three Months Ended Nine Months Ended November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Products $ 19,599 $ 22,511 $ 65,204 $ 71,872 Services 517 568 1,623 1,692 Other 355 400 948 1,050 Net sales $ 20,471 $ 23,479 $ 67,775 $ 74,614 |
Schedule of Anticipated Sales 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 November 3, October 28, February 3, Anticipated sales returns Other current liabilities $ 241 $ 302 $ 234 Right of return assets Other current assets 140 183 139 |
Schedule of Deferred Revenue | Deferred revenue for retail and stored-value cards are as follows: (In millions) November 3, October 28, February 3, Retail deferred revenue $ 984 $ 1,168 $ 933 Stored-value cards deferred revenue 515 568 670 Deferred revenue $ 1,499 $ 1,736 $ 1,603 Deferred revenue - Lowe’s protection plans The Company defers revenues for its separately-priced long-term extended protection plan contracts (Lowe’s protection plans) 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) November 3, October 28, February 3, Deferred revenue - Lowe’s protection plans $ 1,228 $ 1,184 $ 1,201 Three Months Ended Nine Months Ended (In millions) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Lowe’s protection plans deferred revenue recognized into sales $ 139 $ 133 $ 411 $ 389 Lowe’s protection plans claim expenses 64 40 171 134 |
Schedule of Disaggregated Revenue | The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended Nine Months Ended November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 (In millions) Net Sales % Net Sales % Net Sales % Net Sales % Home Décor 1 $ 7,799 38.1 % $ 9,019 38.4 % $ 24,763 36.5 % $ 27,227 36.5 % Building Products 2 6,812 33.3 7,854 33.4 20,990 31.0 24,135 32.3 Hardlines 3 5,230 25.5 5,905 25.1 20,249 29.9 21,351 28.6 Other 630 3.1 702 3.1 1,773 2.6 1,901 2.6 Total $ 20,471 100.0 % $ 23,479 100.0 % $ 67,775 100.0 % $ 74,614 100.0 % 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, Lumber, Millwork, and Rough Plumbing. 3 |
Schedule of Disaggregated Sales by Geographical Area | The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended Nine Months Ended November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 United States $ 20,471 $ 22,280 $ 67,775 $ 70,524 Canada 1 — 1,200 — 4,090 Net sales $ 20,471 $ 23,479 $ 67,775 $ 74,614 1 The Canadian retail business was sold on February 3, 2023. |
Restricted Investments (Tables)
Restricted Investments (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Restricted Investments | Short-term and long-term investments include restricted balances pledged as collateral primarily for the Lowe’s protection plans program and are as follows: (In millions) November 3, 2023 October 28, 2022 February 3, 2023 Short-term restricted investments $ 321 $ 464 $ 384 Long-term restricted investments 238 63 100 Total restricted investments $ 559 $ 527 $ 484 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of November 3, 2023, October 28, 2022, and February 3, 2023: Fair Value Measurements at (In millions) Classification Measurement Level November 3, October 28, February 3, Available-for-sale debt securities: U.S. Treasury securities Short-term investments Level 1 $ 143 $ 216 $ 157 Corporate debt securities Short-term investments Level 2 62 51 78 Money market funds Short-term investments Level 1 49 133 43 Certificates of deposit Short-term investments Level 1 35 7 40 Commercial paper Short-term investments Level 2 30 43 52 Municipal obligations Short-term investments Level 2 2 — — Foreign government debt securities Short-term investments Level 2 — 14 14 U.S. Treasury securities Long-term investments Level 1 215 31 86 Corporate debt securities Long-term investments Level 2 23 30 12 Municipal obligations Long-term investments Level 2 — 2 2 Derivative instruments: Forward interest rate swaps Other current assets Level 2 $ — $ 303 $ 251 Fixed-to-floating interest rate swaps Other liabilities Level 2 92 98 88 Other financial instruments: Contingent consideration Long-term investments Level 3 $ — $ — $ 21 |
Schedule of Contingent Consideration at Fair Value Rollforward | The rollforward of the fair value of contingent consideration for the three and nine months ended November 3, 2023, is as follows: Three Months Ended Nine Months Ended (In millions) November 3, 2023 November 3, 2023 Beginning balance $ — $ 21 Change in fair value — 102 Proceeds received — (123) Ending balance $ — $ — |
Schedule of Impairment Losses of Long-Lived Assets Held for Use | The following table presents the Company’s impairment losses resulting from non-financial assets measured at estimated fair value on a nonrecurring basis included in earnings for the three and nine months ended October 28, 2022: Three Months Ended Nine Months Ended (In millions) October 28, 2022 October 28, 2022 Canada asset group: Property, less accumulated depreciation $ 1,258 $ 1,258 Operating lease right-of-use assets 621 621 Other assets 182 182 Other 7 35 Total $ 2,068 $ 2,096 |
Schedule of Carrying and Fair Value Amount of Long-Term Debt | Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding finance lease obligations, are as follows: November 3, 2023 October 28, 2022 February 3, 2023 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 35,387 $ 30,207 $ 32,886 $ 27,879 $ 32,897 $ 30,190 Mortgage notes (Level 2) 2 2 4 4 2 2 Long-term debt (excluding finance lease obligations) $ 35,389 $ 30,209 $ 32,890 $ 27,883 $ 32,899 $ 30,192 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Outstanding Financed Payment Obligations | The Company’s outstanding payment obligations that suppliers financed to participating financial institutions, which are included in accounts payable on the consolidated balance sheets, are as follows: (In millions) November 3, 2023 October 28, 2022 February 3, 2023 Financed payment obligations $ 1,640 $ 2,635 $ 2,257 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | On March 30, 2023, the Company issued $3.0 billion of unsecured fixed rate notes (March 2023 Notes) as follows: Principal Amount Maturity Date Interest Rate Discount $ 1,000 April 2026 4.800% $ 3 $ 1,000 July 2033 5.150% $ 4 $ 500 July 2053 5.750% $ 5 $ 500 April 2063 5.850% $ 5 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts for the Company’s material derivative instruments are as follows: (In millions) November 3, October 28, February 3, Cash flow hedges: Forward interest rate swap agreement notional amounts $ — $ 1,210 $ 1,290 Fair value hedges: Fixed-to-floating interest rate swap agreement notional amounts $ 850 $ 850 $ 850 |
Summary of Gain (Loss) on Interest Rate Swap Derivatives | The (loss)/gain from forward interest rate swap agreements, both settled and outstanding, designated as cash flow hedges recorded in other comprehensive (loss)/income and net earnings for the three and nine months ended November 3, 2023, and October 28, 2022, including its line item in the financial statements, is as follows: (In millions) Three Months Ended Nine Months Ended November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Other comprehensive (loss)/income: Cash flow hedges – net of tax benefit/(expense) of $1 million, ($55) million, $4 million, and ($116) million, respectively $ (4) $ 166 $ (10) $ 350 Net earnings: Interest – net $ 4 $ 1 $ 11 $ — |
Shareholders' Deficit (Tables)
Shareholders' Deficit (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Stockholders' Equity Note [Abstract] | |
Summary of Accelerated Share Repurchases | The terms of the ASR agreements entered into during the nine months ended November 3, 2023, are as follows (in millions): Agreement Execution Agreement Settlement ASR Initial Shares Delivered at Inception Additional Shares Delivered at Settlement Total Shares Delivered Q1 2023 Q1 2023 $ 750 3.1 0.7 3.8 Q2 2023 Q2 2023 1,000 3.9 0.7 4.6 Q3 2023 Q3 2023 1,500 5.3 1.7 7.0 |
Schedule of Repurchase of Common Stock | In addition, the Company repurchased shares of its common stock through the open market as follows: Three Months Ended Nine Months Ended November 3, 2023 November 3, 2023 (In millions) Shares Cost Shares Cost Open market share repurchases 0.3 $ 95 11.9 $ 2,545 |
Schedule of Share Repurchases | Total shares repurchased for the three and nine months ended November 3, 2023, and October 28, 2022, were as follows: Three Months Ended November 3, 2023 October 28, 2022 (In millions) Shares Cost Shares Cost Share repurchase program 1 7.3 $ 1,595 20.5 $ 4,000 Shares withheld from employees — 1 — 3 Total share repurchases 7.3 $ 1,596 20.5 $ 4,003 Nine Months Ended November 3, 2023 October 28, 2022 (In millions) Shares Cost Shares Cost Share repurchase program 1 27.3 $ 5,795 60.6 $ 12,000 Shares withheld from employees 0.7 135 0.6 122 Total share repurchases 28.0 $ 5,930 61.2 $ 12,122 1 Beginning January 1, 2023, share repurchases in excess of issuances are subject to a 1% excise tax, which is included as part of the cost basis of the shares acquired. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles earnings per common share for the three and nine months ended November 3, 2023, and October 28, 2022: Three Months Ended Nine Months Ended (In millions, except per share data) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Basic earnings per common share: Net earnings $ 1,773 $ 154 $ 6,706 $ 5,479 Less: Net earnings allocable to participating securities (4) (2) (18) (17) Net earnings allocable to common shares, basic $ 1,769 $ 152 $ 6,688 $ 5,462 Three Months Ended Nine Months Ended (In millions, except per share data) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Weighted-average common shares outstanding 576 618 585 638 Basic earnings per common share $ 3.07 $ 0.25 $ 11.43 $ 8.56 Diluted earnings per common share: Net earnings $ 1,773 $ 154 $ 6,706 $ 5,479 Less: Net earnings allocable to participating securities (4) (2) (18) (17) Net earnings allocable to common shares, diluted $ 1,769 $ 152 $ 6,688 $ 5,462 Weighted-average common shares outstanding 576 618 585 638 Dilutive effect of non-participating share-based awards 1 2 2 2 Weighted-average common shares, as adjusted 577 620 587 640 Diluted earnings per common share $ 3.06 $ 0.25 $ 11.40 $ 8.53 Anti-dilutive securities excluded from diluted weighted-average common shares 0.6 0.6 0.5 0.5 |
Supplemental Disclosure (Tables
Supplemental Disclosure (Tables) | 9 Months Ended |
Nov. 03, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Net Interest Expense | Net interest expense is comprised of the following: Three Months Ended Nine Months Ended (In millions) November 3, 2023 October 28, 2022 November 3, 2023 October 28, 2022 Long-term debt $ 365 $ 295 $ 1,075 $ 782 Short-term borrowings — 4 15 5 Lease obligations 6 7 19 21 Interest income (27) (14) (78) (21) Interest capitalized (1) (1) (4) (3) Interest on tax uncertainties — — — 3 Other 2 4 6 15 Interest – net $ 345 $ 295 $ 1,033 $ 802 |
Supplemental Disclosures of Cash Flow Information | Supplemental disclosures of cash flow information: Nine Months Ended (In millions) November 3, 2023 October 28, 2022 Cash paid for interest, net of amount capitalized $ 1,415 $ 909 Cash paid for income taxes – net 3,163 1,540 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 46 $ 46 Leased assets obtained in exchange for new operating lease liabilities 1 497 465 Cash dividends declared but not paid 633 643 1 Excludes $260 million of leases signed but not yet commenced as of November 3, 2023. |
Revenue - Sources of Revenue (D
Revenue - Sources of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 20,471 | $ 23,479 | $ 67,775 | $ 74,614 |
Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 19,599 | 22,511 | 65,204 | 71,872 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 517 | 568 | 1,623 | 1,692 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 355 | $ 400 | $ 948 | $ 1,050 |
Revenue - Anticipated Sales Ret
Revenue - Anticipated Sales Returns (Details) - USD ($) $ in Millions | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Anticipated sales returns | $ 241 | $ 234 | $ 302 |
Right of return assets | $ 140 | $ 139 | $ 183 |
Revenue - Deferred Revenue (Det
Revenue - Deferred Revenue (Details) - USD ($) $ in Millions | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Retail deferred revenue | $ 984 | $ 933 | $ 1,168 |
Stored-value cards deferred revenue | 515 | 670 | 568 |
Deferred revenue | $ 1,499 | $ 1,603 | $ 1,736 |
Revenue - Extended Protection P
Revenue - Extended Protection Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | Feb. 03, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred revenue – Lowe's protection plans | $ 1,228 | $ 1,184 | $ 1,228 | $ 1,184 | $ 1,201 |
Lowe’s protection plans deferred revenue recognized into sales | 139 | 133 | 411 | 389 | |
Lowe’s protection plans claim expenses | $ 64 | $ 40 | $ 171 | $ 134 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 20,471 | $ 23,479 | $ 67,775 | $ 74,614 |
Net sales (in percent) | 100% | 100% | 100% | 100% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 20,471 | $ 22,280 | $ 67,775 | $ 70,524 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 1,200 | 0 | 4,090 |
Home Decor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 7,799 | $ 9,019 | $ 24,763 | $ 27,227 |
Net sales (in percent) | 38.10% | 38.40% | 36.50% | 36.50% |
Building Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 6,812 | $ 7,854 | $ 20,990 | $ 24,135 |
Net sales (in percent) | 33.30% | 33.40% | 31% | 32.30% |
Hardlines | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,230 | $ 5,905 | $ 20,249 | $ 21,351 |
Net sales (in percent) | 25.50% | 25.10% | 29.90% | 28.60% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 630 | $ 702 | $ 1,773 | $ 1,901 |
Net sales (in percent) | 3.10% | 3.10% | 2.60% | 2.60% |
Restricted Investments - Restri
Restricted Investments - Restricted Investment Balances (Details) - USD ($) $ in Millions | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
Investments, Debt and Equity Securities [Abstract] | |||
Short-term restricted investments | $ 321 | $ 384 | $ 464 |
Long-term restricted investments | 238 | 100 | 63 |
Total restricted investments | $ 559 | $ 484 | $ 527 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Nov. 03, 2023 | Aug. 04, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
Other financial instruments: | ||||
Contingent consideration | $ 0 | $ 0 | $ 21 | |
Recurring | Estimate of fair value | Forward interest rate swaps | Fair value (Level 2) | ||||
Assets, Fair Value Disclosure | ||||
Derivative instrument, current | 0 | 251 | $ 303 | |
Recurring | Estimate of fair value | Fixed-to-floating interest rate swaps | Fair value (Level 2) | ||||
Liabilities, Fair Value Disclosure | ||||
Derivative instrument, noncurrent | 92 | 88 | 98 | |
Recurring | Estimate of fair value | Short-term investments | U.S. Treasury securities | Fair value (Level 1) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 143 | 157 | 216 | |
Recurring | Estimate of fair value | Short-term investments | Corporate debt securities | Fair value (Level 2) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 62 | 78 | 51 | |
Recurring | Estimate of fair value | Short-term investments | Money market funds | Fair value (Level 1) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 49 | 43 | 133 | |
Recurring | Estimate of fair value | Short-term investments | Certificates of deposit | Fair value (Level 1) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 35 | 40 | 7 | |
Recurring | Estimate of fair value | Short-term investments | Commercial paper | Fair value (Level 2) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 30 | 52 | 43 | |
Recurring | Estimate of fair value | Short-term investments | Municipal obligations | Fair value (Level 2) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 2 | 0 | 0 | |
Recurring | Estimate of fair value | Short-term investments | Foreign government debt securities | Fair value (Level 2) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 0 | 14 | 14 | |
Recurring | Estimate of fair value | Long-term investments | Fair value (Level 3) | ||||
Other financial instruments: | ||||
Contingent consideration | 0 | 21 | 0 | |
Recurring | Estimate of fair value | Long-term investments | U.S. Treasury securities | Fair value (Level 1) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 215 | 86 | 31 | |
Recurring | Estimate of fair value | Long-term investments | Corporate debt securities | Fair value (Level 2) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | 23 | 12 | 30 | |
Recurring | Estimate of fair value | Long-term investments | Municipal obligations | Fair value (Level 2) | ||||
Assets, Fair Value Disclosure | ||||
Available-for-sale debt securities | $ 0 | $ 2 | $ 2 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Nov. 03, 2023 | Nov. 03, 2023 | |
Business Combination, Contingent Consideration [Roll Forward] | ||
Beginning balance | $ 0 | $ 21 |
Change in fair value | 0 | 102 |
Proceeds received | 0 | (123) |
Ending balance | $ 0 | $ 0 |
Fair Value Measurements - Impai
Fair Value Measurements - Impairment Losses (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 28, 2022 USD ($) | Oct. 28, 2022 USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Fair value of long-lived assets | $ 421 | $ 421 |
Long-lived asset impairment losses | 2,068 | 2,096 |
Other | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Long-lived asset impairment losses | 7 | 35 |
Property, less accumulated depreciation | Canadian retail business | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Long-lived asset impairment losses | 1,258 | 1,258 |
Operating lease right-of-use assets | Canadian retail business | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Long-lived asset impairment losses | 621 | 621 |
Other assets | Canadian retail business | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Long-lived asset impairment losses | $ 182 | $ 182 |
Fair Value Measurements - Other
Fair Value Measurements - Other Fair Value Disclosures (Details) - USD ($) $ in Millions | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carrying value (excluding finance lease obligations) | $ 35,389 | $ 32,899 | $ 32,890 |
Unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carrying value (excluding finance lease obligations) | 35,387 | 32,897 | 32,886 |
Mortgage notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carrying value (excluding finance lease obligations) | 2 | 2 | 4 |
Estimate of fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt fair value (excluding finance lease obligations) | 30,209 | 30,192 | 27,883 |
Estimate of fair value | Unsecured notes | Fair value (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt fair value (excluding finance lease obligations) | 30,207 | 30,190 | 27,879 |
Estimate of fair value | Mortgage notes | Fair value (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt fair value (excluding finance lease obligations) | $ 2 | $ 2 | $ 4 |
Accounts Payable - Outstanding
Accounts Payable - Outstanding Payment Obligations (Details) - USD ($) $ in Millions | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 |
Payables and Accruals [Abstract] | |||
Financed payment obligations | $ 1,640 | $ 2,257 | $ 2,635 |
Debt - Short-term Debt (Details
Debt - Short-term Debt (Details) - USD ($) | 1 Months Ended | |||||
Sep. 30, 2023 | Dec. 31, 2021 | Mar. 31, 2020 | Nov. 03, 2023 | Feb. 03, 2023 | Oct. 28, 2022 | |
Short-term Debt [Line Items] | ||||||
Amount outstanding under the commercial paper program | $ 499,000,000 | |||||
Commercial Paper | ||||||
Short-term Debt [Line Items] | ||||||
Amount outstanding under the credit facility | $ 0 | |||||
Weighted average interest rate | 4.78% | |||||
2023 Credit Agreement | ||||||
Short-term Debt [Line Items] | ||||||
Amount outstanding under the credit facility | $ 0 | |||||
2020 Credit Agreement | ||||||
Short-term Debt [Line Items] | ||||||
Amount outstanding under the credit facility | $ 0 | 0 | ||||
Third Amended and Restated Credit Agreement | ||||||
Short-term Debt [Line Items] | ||||||
Amount outstanding under the credit facility | 0 | $ 0 | $ 0 | |||
Revolving Credit Facility | ||||||
Short-term Debt [Line Items] | ||||||
Maximum borrowing capacity | $ 4,000,000,000 | |||||
Revolving Credit Facility | 2023 Credit Agreement | ||||||
Short-term Debt [Line Items] | ||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||
Debt instrument term | 5 years | |||||
Revolving Credit Facility | 2020 Credit Agreement | ||||||
Short-term Debt [Line Items] | ||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||
Debt instrument term | 5 years | |||||
Revolving Credit Facility | Third Amended and Restated Credit Agreement | ||||||
Short-term Debt [Line Items] | ||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||
Debt instrument term | 5 years |
Debt - Debt Issued (Details)
Debt - Debt Issued (Details) | Mar. 30, 2023 USD ($) |
Unsecured Notes Issued in 2023 | Unsecured Notes | |
Debt Instrument [Line Items] | |
Principal Amount (in millions) | $ 3,000,000,000 |
Unsecured Notes, 4.800% | |
Debt Instrument [Line Items] | |
Principal Amount (in millions) | $ 1,000,000,000 |
Interest Rate | 4.80% |
Discount (in millions) | $ 3,000,000 |
Unsecured Notes, 5.150% | |
Debt Instrument [Line Items] | |
Principal Amount (in millions) | $ 1,000,000,000 |
Interest Rate | 5.15% |
Discount (in millions) | $ 4,000,000 |
Unsecured Notes, 5.750% | |
Debt Instrument [Line Items] | |
Principal Amount (in millions) | $ 500,000,000 |
Interest Rate | 5.75% |
Discount (in millions) | $ 5,000,000 |
Unsecured Notes, 5.850% | |
Debt Instrument [Line Items] | |
Principal Amount (in millions) | $ 500,000,000 |
Interest Rate | 5.85% |
Discount (in millions) | $ 5,000,000 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) | 9 Months Ended |
Nov. 03, 2023 | |
Unsecured Notes Issued in 2023 | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage | 101% |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 30, 2023 | Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | Feb. 03, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Cash flow hedges – net of tax | $ (4) | $ 170 | $ (10) | $ 352 | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Revenue (Expense), Net | Interest Revenue (Expense), Net | Interest Revenue (Expense), Net | Interest Revenue (Expense), Net | ||
Forward interest rate swaps | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Cash flow hedges - tax benefit/(expense) | $ 1 | $ (55) | $ 4 | $ (116) | ||
Forward interest rate swaps | Designated as hedging instrument | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount of derivatives | $ 2,000 | |||||
Proceeds from derivative instrument | $ 247 | |||||
Cash flow hedges – net of tax | (4) | 166 | (10) | 350 | ||
Interest – net | 4 | 1 | 11 | 0 | ||
Forward interest rate swaps | Designated as hedging instrument | Cash flow hedging | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount of derivatives | 0 | 1,210 | 0 | 1,210 | $ 1,290 | |
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 | $ 850 | $ 850 | $ 850 | $ 850 | $ 850 |
Shareholders' Deficit -Share Re
Shareholders' Deficit -Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Nov. 03, 2023 | Aug. 04, 2023 | May 05, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Share repurchase program | ||||||
Share Repurchases | ||||||
Remaining share repurchases authorization, value | $ 15,000 | $ 15,000 | ||||
Share repurchases, cost | 1,595 | $ 4,000 | $ 5,795 | $ 12,000 | ||
Accelerated share repurchase | ||||||
Share Repurchases | ||||||
Share repurchases (in shares) | 15.4 | |||||
Share repurchases, cost | $ 3,300 | |||||
ASR Agreement Amount | $ 1,500 | $ 1,000 | $ 750 | $ 1,500 | ||
Initial Shares Delivered at Inception (in shares) | 5.3 | 3.9 | 3.1 | |||
Additional Shares Delivered At Settlement (in shares) | 1.7 | 0.7 | 0.7 | |||
Total Shares Delivered (in shares) | 7 | 4.6 | 3.8 | |||
Open market share repurchases | ||||||
Share Repurchases | ||||||
Share repurchases (in shares) | 0.3 | 11.9 | ||||
Share repurchases, cost | $ 95 | $ 2,545 |
Shareholders' Deficit - Summary
Shareholders' Deficit - Summary (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Total share repurchases | ||||
Share Repurchases | ||||
Share repurchases (in shares) | 7.3 | 20.5 | 28 | 61.2 |
Share repurchases, cost | $ 1,596 | $ 4,003 | $ 5,930 | $ 12,122 |
Share repurchase program | ||||
Share Repurchases | ||||
Share repurchases (in shares) | 7.3 | 20.5 | 27.3 | 60.6 |
Share repurchases, cost | $ 1,595 | $ 4,000 | $ 5,795 | $ 12,000 |
Shares withheld from employees | ||||
Share Repurchases | ||||
Share repurchases (in shares) | 0 | 0 | 0.7 | 0.6 |
Share repurchases, cost | $ 1 | $ 3 | $ 135 | $ 122 |
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 | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Basic earnings per common share: | ||||
Net earnings | $ 1,773 | $ 154 | $ 6,706 | $ 5,479 |
Less: Net earnings allocable to participating securities | (4) | (2) | (18) | (17) |
Net earnings allocable to common shares, basic | $ 1,769 | $ 152 | $ 6,688 | $ 5,462 |
Weighted-average common shares outstanding (in shares) | 576 | 618 | 585 | 638 |
Basic earnings per common share (in dollars per share) | $ 3.07 | $ 0.25 | $ 11.43 | $ 8.56 |
Diluted earnings per common share: | ||||
Net earnings | $ 1,773 | $ 154 | $ 6,706 | $ 5,479 |
Less: Net earnings allocable to participating securities | (4) | (2) | (18) | (17) |
Net earnings allocable to common shares, diluted | $ 1,769 | $ 152 | $ 6,688 | $ 5,462 |
Weighted-average common shares outstanding (in shares) | 576 | 618 | 585 | 638 |
Dilutive effect of non-participating share-based awards (in shares) | 1 | 2 | 2 | 2 |
Weighted-average common shares, as adjusted (in shares) | 577 | 620 | 587 | 640 |
Diluted earnings per common share (in dollars per share) | $ 3.06 | $ 0.25 | $ 11.40 | $ 8.53 |
Anti-dilutive securities excluded from diluted weighted-average common shares (in shares) | 0.6 | 0.6 | 0.5 | 0.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | Feb. 03, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 24.60% | 75.50% | 24.10% | 28.40% | |
Deferred federal income taxes payable | $ 0.6 | $ 0.6 | $ 1.2 |
Supplemental Disclosure - Net I
Supplemental Disclosure - Net Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2023 | Oct. 28, 2022 | Nov. 03, 2023 | Oct. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Long-term debt | $ 365 | $ 295 | $ 1,075 | $ 782 |
Short-term borrowings | 0 | 4 | 15 | 5 |
Lease obligations | 6 | 7 | 19 | 21 |
Interest income | (27) | (14) | (78) | (21) |
Interest capitalized | (1) | (1) | (4) | (3) |
Interest on tax uncertainties | 0 | 0 | 0 | 3 |
Other | 2 | 4 | 6 | 15 |
Interest – net | $ 345 | $ 295 | $ 1,033 | $ 802 |
Supplemental Disclosure - Cash
Supplemental Disclosure - Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Nov. 03, 2023 | Oct. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash paid for interest, net of amount capitalized | $ 1,415 | $ 909 |
Cash paid for income taxes – net | 3,163 | 1,540 |
Non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new finance lease liabilities | 46 | 46 |
Leased assets obtained in exchange for new operating lease liabilities | 497 | 465 |
Cash dividends declared but not paid | 633 | $ 643 |
Operating leases signed but not commenced | $ 260 |