Policy

2. Financial Statement Schedule

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES



(In Millions)	Balance at beginning of period		Charges to costs and expenses			Deductions				Balance at end of period

January 31, 2014:
Reserve for loss on obsolete inventory	$	57	$	11	⁽¹⁾	$	—			$	68
Reserve for inventory shrinkage	142		325			(309		)	⁽²⁾	158
Reserve for sales returns	59		—			(1		)	⁽³⁾	58
Deferred tax valuation allowance	142		22		⁽⁴⁾	—				164
Self-insurance liabilities	899		1,164			(1,159		)	⁽⁵⁾	904
Reserve for exit activities	75		11			(32		)	⁽⁶⁾	54

February 1, 2013:
Reserve for loss on obsolete inventory	$	47	$	10	⁽¹⁾	$	—			$	57
Reserve for inventory shrinkage	141		316			(315		)	⁽²⁾	142
Reserve for sales returns	56		3		⁽³⁾	—				59
Deferred tax valuation allowance	101		41		⁽⁴⁾	—				142
Self-insurance liabilities	864		1,164			(1,129		)	⁽⁵⁾	899
Reserve for exit activities	86		11			(22		)	⁽⁶⁾	75

February 3, 2012:
Reserve for loss on obsolete inventory	$	39	$	8	⁽¹⁾	$	—			$	47
Reserve for inventory shrinkage	127		308			(294		)	⁽²⁾	141
Reserve for sales returns	52		4		⁽³⁾	—				56
Deferred tax valuation allowance	99		2		⁽⁴⁾	—				101
Self-insurance liabilities	835		1,126			(1,097		)	⁽⁵⁾	864
Reserve for exit activities	12		98			(24		)	⁽⁶⁾	86

⁽¹⁾ Represents the net increase/(decrease) in the required reserve based on the Company’s evaluation of obsolete inventory.

⁽²⁾ Represents the actual inventory shrinkage experienced at the time of physical inventories.

⁽³⁾ Represents the net increase/(decrease) in the required reserve based on the Company’s evaluation of anticipated merchandise returns.

⁽⁴⁾Represents an increase in the required reserve based on the Company’s evaluation of deferred tax assets.

⁽⁵⁾ Represents claim payments for self-insured claims.

⁽⁶⁾ Represents lease payments and adjustments, net of sublease income, and payments for one-time employee termination benefits.

LOWES COMPANIES INC | 2013 | FY |