I need help with my cash flow statement question.

this is due at 11:59 pm today 7/29/2016

Your Project is Our Priority. 2015 ANNUAL REPORT Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE 50 home improvement company serving more than 16 million customers a week in the United States, Canada and Mexico through its stores and online at Lowes.com, Lowes.ca and Lowes.com.mx. With fiscal year 2015 sales of $59.1 billion, Lowe's has more than 1,855 home improvement and hardware stores and 270,000 employees. Founded in 1946 and based in Mooresville, N.C., Lowe's is the second largest home improvement retailer in the world. 2015 ANNUAL REPORT YOUR PROJECT IS OUR PRIORITY My husband and I have longed for a new kitchen for years. After visiting other home improvement stores where we were on our own to make our way around the store, we went to Lowe's in Ft. Wayne, IN and that's where our search ended. We were introduced to a project specialist who spent three hours with us, taking us from department to department, giving us suggestions and ideas, and listening to what we wanted. As we moved through the design and installation process, whenever we had a question or changed our minds, the Lowe's team was always willing to work with us. It was a long project and not without glitches, but it was well worth it. We love our new kitchen from Lowe's! It has been such a pleasure working in it, and a great pleasure working with \"our team\" from Lowe's. Dave and Pam Herminghuysen, Van Wert, Ohio 1 LOWE'S COMPANIES, INC. Letter to Shareholders, It's easy to explain what we do and how we do it. We sell home improvement goods and services through our stores, our website, our contact centers, at job sites and even right in people's homes. But over the past few years, we've taken time to evaluate why we do these things. Why do we sell home improvement goods and services? Why are we transforming to an omni-channel home improvement company? Through this evaluation we uncovered a purpose that's authentic to who we are as an organization and a reflection of what we do every single day. Our purpose is to help people love where they live. And, as we're evolving from a company with a purpose to a company driven by purpose, we remain focused on our ability to meet customers on their terms, provide solutions for their projects, and be their trusted partner in home improvement. Moreover, we seek to differentiate ourselves through better customer experiences that make us the project authority. We do this by continuing to leverage our distinctive strengths in customer experience design to inspire customers and guide them through completion of their home improvement projects. We continue to enhance our relevance to customers through omni-channel retailing, where all of our channels work together seamlessly so that we support customers at every step of their home improvement journey and build greater affinity for the Lowe's brand. We began rolling out technology to better support our omni-channel strategy to a couple of test markets in late 2015 and continue deploying the technology across the chain. 2 As we transform to a home improvement company, we know that there is more than one path to serving customers, so we are growing our capabilities and our reach all with the intent of helping people love where they live. By leveraging our portfolio of home improvement businesses, we are well positioned to adapt to what customers expect, now and in the future, and to generate value for shareholders for years to come. While the size and scope of what we do continues to evolve, just as it has since we were founded in 1946, the passion and pride of our people remains constant. I believe our steadfast commitment to customers is evident in the solid results we achieved in 2015. Total sales grew 5.1% to $59.1 billion, driven by comparable sales growth of 4.8%, with all regions and product categories achieving positive comps. 2015 ANNUAL REPORT OMNI-CHANNEL RETAILING ONLINE IN-STORE 2 \u0007 4/7 shopping experience through websites and mobile applications \u0007More than 1,855 convenient retail store locations O \u0007 ffers product information and customer ratings and reviews, as well as buying guides and how-to videos and information P \u0007 rovides access to knowledgeable associates and immediate fulfillment of purchases ON-SITE CONTACT CENTER S \u0007 pecialists meet with Pro cus tomers in their workplace or at job sites \u0007T hree contact centers, in Wilkesboro, NC, Albuquerque, NM, and Indianapolis, IN CUSTOMER CENTRIC APPROACH \u0007Direct phone sales and customer support, including coordinating project deliveries and facilitating repair services S \u0007 pecialists meet customers in their home to sell interior and exterior projects, offering consultations and project management services through project completion With a keen focus on productivity and profitability, we Our fundamental purpose ensures that all the effort leveraged this continued top-line growth to deliver an we've put into transformational change will last well into 1 increase in Adjusted Net Earnings of 14% and Adjusted the future, because we're driven to build deep, lasting Diluted Earnings Per Share of 21%. relationships with customers. I'd like to thank our 1 While our purpose empowers us to focus on the thing that matters mostthe customerit also fuels substantial returns for our shareholders. Our capital allocation priorities align with the commitments we've made to both employees, a group of more than 270,000 people, who embrace our purpose to help people love where they live, who dedicate themselves to serving customers and who have committed to evolving with changing customer needs. customers and shareholders. From the solid cash flow we generate, we first invest to maintain and grow our businesses. Next, we target a dividend payout ratio of 35%, and our dividend has grown every year since going Robert A. Niblock Chairman of the Board, President and Chief Executive Officer public in 1961. Then, we use remaining funds to repurchase shares. Adjusted Net Earnings and Adjusted Diluted Earnings Per Share are non-GAAP financial measures. Refer to the Management's Discussion and Analysis section of our Annual Report on Form 10-K for additional information as well as reconciliations between the Company's GAAP and non-GAAP financial results. 1\u0007 3 LOWE'S COMPANIES, INC. Financial Highlights: 2015 Dollars in millions, except per share data 2014 2013 Net sales Gross margin Adjusted EBIT margin1,2 Adjusted net earnings (% to sales)2 $\b59,074 34.82% 9.31% 5.21% $\b56,223 34.79% 8.53% 4.80% $\b53,417 34.59% 7.77% 4.28% Adjusted diluted earnings per common share2 Cash dividends per share $\b3.29 $\b1.07 $\b2.71 $\b0.87 $\b2.14 $\b0.70 Total assets Shareholders' equity $\b31,266 $\b7,654 $\b31,721 $\b9,968 $\b32,471 $\b11,853 Net cash provided by operating activities Capital expenditures $\b4,784 $\b1,197 $\b4,929 $\b880 $\b4,111 $\b940 Comparable sales increase3 Total customer transactions (in millions) Average ticket4 Selling square feet (in millions) Return on invested capital5 4.8% 878 $\b67.26 202 14.1% 4.3% 857 $\b65.61 201 13.9% 4.8% 828 $\b64.52 200 11.5% \u0007 BIT margin, also referred to as operating margin, is defined as earnings before interest and taxes as a percentage of sales. E \u0007A djusted EBIT margin, Adjusted net earnings and Adjusted diluted earnings per common share are non-GAAP financial measures. Refer to the Management's Discussion and Analysis section of our Annual Report of Form 10-K for additional information as well as reconciliations between the Company's GAAP and non-GAAP financial results. 3 \u0007P lease see the Management's Discussion and Analysis section of our Annual Report on Form 10-K for the definition and calculation of a comparable location. 4 \u0007Average ticket is defined as net sales divided by the total number of customer transactions. 5 \u0007Return on invested capital (ROIC) is a non-GAAP financial measure. Please see the Management's Discussion and Analysis section of our Annual Report on Form 10-K for the definition of ROIC and a reconciliation of ROIC for the periods presented to the most directly comparable GA AP measure. In 2015, the Company recognized a $530 million non-cash impairment charge in connection with the Company's decision to exit its joint venture with Woolworths Limited in Australia, which negatively impacted ROIC by 238 basis points. 6 \u0007S ales per selling square foot is defined as sales divided by the average of beginning and ending selling square feet. 1 2 1, 2 Sales per Selling Adjusted EBIT Margin (in percent) Square Foot6 ing 1, 2 Adjusted Diluted Earnings Adjusted EBIT Margin (inCommon percent) Share2 per (in dollars) 10.0% $300 3.5 3.0 8.0 2.5 6.0 250 200 2.0 $3.50 10.0% 3.0 3.00 8.0 8 2.5 2.50 3.00 8.0 2.50 6 2.06.0 2.00 6.0 2.00 4 1.5 1.50 4.0 4 4.01.50 2 1.0 1.00 2.0 2 0.5 0.50 1.00 2.0 0.50 8 6 1.5 1.0 2.0 3 '14 '15 0 0.5 100 50 0 0.0 0 '14 '12 '11 '12 '13 '11 '15 '13 '14 '15 0 00 0 0 0.0 '11'11 '12'12'13'13'14'14'15'15 15 3.5 15% 3.0 12 12 2.5 9 6 2.0 1.5 3 0.5 0 0.0 '13 '13 '14 '14 '11 '11 '12 '12 '15 '15 15 3.5 $3.50 3.0 3.00 12 2.5 9 2.0 6 1.5 6 1.50 1.0 1.00 3 0 (in dollars) 2.00 3 0.5 15% 12 2.50 9 1.0 Fiscal year 2011 contained 53 weeks. All other fiscal years presented contained 52 weeks. 4 (in percent) (in dollars) 10 3.5 $3.50 10.0% 10 150 4.0 (in dollars) Return on Adjusted Diluted Earnings Invested Capital per 5Common Share2 1, 2 Adjusted EBIT Margin Adjusted Diluted Earnings (in percent) per Common Share2 0.50 0 0.0 0 '14 '15 '11 '12 '13 '11 '12 '13 '14 '15 9 6 3 0 2015 Form 10-K. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) _\u0003 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 29, 2016 or \u0003 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _________ Commission file number 1-7898 LOWE'S COMPANIES, INC. (Exact name of registrant as specified in its charter) NORTH CAROLINA (State or other jurisdiction of incorporation or organization) 56-0578072 (I.R.S. Employer Identification No.) 1000 Lowe's Blvd., Mooresville, NC (Address of principal executive offices) 28117 (Zip Code) Registrant's telephone number, including area code 704-758-1000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, $0.50 Par Value New York Stock Exchange (NYSE) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. _ Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes _ No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. _ Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). _ Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. _ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of \"large accelerated filer,\" \"accelerated filer,\" and \"smaller reporting company\" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer _ Accelerated filer Non-accelerated filer Smaller reporting company Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes _ No As of July 31, 2015, the last business day of the Company's most recent second quarter, the aggregate market value of the registrant's common stock held by nonaffiliates of the registrant was $64.3 billion based on the closing sale price as reported on the New York Stock Exchange. Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. CLASS OUTSTANDING AT 3/24/2016 Common Stock, $0.50 par value 897,438,629 DOCUMENTS INCORPORATED BY REFERENCE Document Parts Into Which Incorporated Portions of the Proxy Statement for Lowe's 2016 Annual Meeting of Shareholders Part III LOWE'S COMPANIES, INC. - TABLE OF CONTENTS Page No. PART I Item 1. Business 1 Item 1A. Risk Factors 6 Item 1B. Unresolved Staff Comments 11 Item 2. Properties 11 Item 3. Legal Proceedings 11 Item 4. Mine Safety Disclosures 12 Executive Officers and Certain Significant Employees of the Registrant 13 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14 Item 6. Selected Financial Data 15 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 16 PART II Item 5. Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30 Item 8. Financial Statements and Supplementary Data 31 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 61 Item 9A. Controls and Procedures 61 Item 9B. Other Information 61 PART III Item 10. Directors, Executive Officers and Corporate Governance 62 Item 11. Executive Compensation 62 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 62 Item 13. Certain Relationships and Related Transactions, and Director Independence 62 Item 14. Principal Accountant Fees and Services 62 Exhibits and Financial Statement Schedules 63 Signatures 71 PART IV Item 15. i Part I Item 1 - Business General Information Lowe's Companies, Inc. and subsidiaries (the Company or Lowe's) is a Fortune 50 company and the world's second largest home improvement retailer. As of January 29, 2016, Lowe's operated 1,857 home improvement and hardware stores, representing approximately 202 million square feet of retail selling space. Lowe's is comprised of 1,805 stores located across 50 U.S. states, including 80 Orchard Supply Hardware (Orchard) stores in California and Oregon, as well as 42 stores in Canada, and 10 stores in Mexico. Lowe's was incorporated in North Carolina in 1952 and has been publicly held since 1961. The Company's common stock is listed on the New York Stock Exchange - ticker symbol \"LOW\". See Item 6, \"Selected Financial Data\