APPENDIX B Excerpts from the Fiscal 2019 10-K Annual Report of Lowe's Companies, Inc. LOWE'S COMPANIES, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In millions, except per share and percentage data) B5 Fiscal Years Ended January 31, 2020 February 1, 2019 "Fiscal 2019" % Sales "Fiscal 2018" % Sales February 2, 2018 "Fiscal 2017 % Sales Net sales $72,148 100.00% $71,309 100.00% $68,619 100.00% Cost of sales 49,205 68.20 48,401 67.88 46,185 67.31 Gross margin 22,943 31.80 22,908 32.12 22,434 32.69 Expenses: Selling, general and administrative 15,367 21.30 17,413 24.41 14,444 21.04 Depreciation and amortization 1,262 1.75 1,477 2.07 1,404 2.05 Operating income 6,314 8.75 4,018 5.64 6,586 9.60 Interest-net 691 0.96 624 0.88 633 0.92 Loss on extinguishment of debt 464 0.68 Pre-tax earnings 5,623 7.79 3,394 4.76 5,489 8.00 Income tax provision 1,342 1.86 1,080 1.52 2,042 2.98 Net earnings $ 4,281 5.93% $ 2,314 3.24% $ 3,447 5.02% Basic earnings per common share $ 5.49 $ 2.84 $ 4.09 Diluted earnings per common share $ 5.49 $ 2.84 $ 4.09 Cash dividends per share $ 2.13 $ 1.85 $ 1.58