EX-12.1 2 exhibit121_11032017.htm STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.1
Lowe’s Companies, Inc.
Statement re Computation of Ratio of Earnings to Fixed Charges
In Millions, Except Ratio Data

 
Nine Months Ended
 
Fiscal Years Ended
 
November 3, 2017
 
October 28, 2016
February 3, 2017
 
January 29, 2016 4
 
January 30, 2015
 
January 31, 2014
 
February 1, 2013
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
$
4,545

 
$
4,091

 
$
5,201

 
$
4,419

 
$
4,276

 
$
3,673

 
$
3,137

Fixed Charges
649

 
633

 
847

 
720

 
677

 
623

 
605

Capitalized Interest 1
5

 
6

 
8

 
9

 
9

 
8

 
6

Adjusted Earnings
$
5,199

 
$
4,730

 
$
6,056

 
$
5,148

 
$
4,962

 
$
4,304

 
$
3,748

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense 2
$
494

 
$
497

 
$
659

 
$
559

 
$
525

 
$
478

 
$
463

Rental Expense 3
155

 
136

 
188

 
161

 
152

 
145

 
142

Total Fixed Charges
$
649

 
$
633

 
$
847

 
$
720

 
$
677

 
$
623

 
$
605

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
8.0

 
7.5

 
7.2

 
7.1

 
7.3

 
6.9

 
6.2

1 
Includes the net of subtractions for interest capitalized and additions for amortization of previously-capitalized interest.
2 
Interest accrued on uncertain tax positions is excluded from Interest Expense in the computation of Fixed Charges.
3 
The portion of rental expense that is representative of the interest factor in these rentals.
4 
Earnings for the fiscal year ended January 29, 2016 included a $530 million non-cash impairment charge related to the equity method investment in the Australia joint venture with Woolworths Limited. Excluding this charge from the calculation would result in a ratio of earnings to fixed charges of 7.9 for the fiscal year ended January 29, 2016.