lowesform11k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 11-K
 
x
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the year ended December 31, 2012
   
 or
   
o
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  ____  to  ____
 
Commission file number
1-7898
 

 
A. Full title of the Plan and the address of the Plan, if different from that of the issuer named below: 
Lowe's 401(k) Plan
 
B. Name of issuer of the securities held pursuant to the Plan and the address of its principal executive office:
 Lowe's Companies, Inc.
1000 Lowe's Boulevard
Mooresville, NC 28117


 
 
 
 
LOWE’S 401(k) PLAN
- TABLE OF CONTENTS -

  Page No.
   
3
   
4
   
5
   
6 - 12
   
Supplemental Schedules as of and for the year ended December 31, 2012
  
   
13-20
   
21
   
22
   
23
 
NOTE:
All other supplemental schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

 
2
 
Table of Contents
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Plan Administrator of and Participants in
Lowe’s 401(k) Plan

We have audited the accompanying statements of net assets available for benefits of Lowe’s 401(k) Plan (the "Plan") as of December 31, 2012 and 2011, and the related statement of changes in net assets available for benefits for the year ended December 31, 2012. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2012 and 2011, and the changes in net assets available for benefits for the year ended December 31, 2012 in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the Table of Contents are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These schedules are the responsibility of the Plan’s management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 2012 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.
 
/s/ Deloitte & Touche LLP

Charlotte, North Carolina
June 28, 2013

 
3
 
Table of Contents

Lowe's 401(k) Plan
            
           
             
             
   
December 31, 2012
    
December 31, 2011
  
Assets
            
Cash
   $ 1,216,491     $ 11,377,113  
Participant-directed investments at fair value
     3,533,690,090       2,890,561,205  
Receivables:
                
Due from broker for securities sold
     4,620,232       2,143,096  
Total receivables
     4,620,232       2,143,096  
                 
Total assets
     3,539,526,813       2,904,081,414  
                 
Liabilities
                
                 
Due to broker for securities purchased
     5,706,332       13,337,939  
                 
Net assets available for benefits at fair value
     3,533,820,481       2,890,743,475  
                 
Adjustment from fair value to contract value for fully benefit- responsive stable value fund
     (14,274,056 )     -  
                 
Adjustment from fair value to contract value for fully benefit-responsive investment contract      -       (15,514,051 ) 
                 
Net assets available for benefits
   $ 3,519,546,425     $ 2,875,229,424  
                 
                 
See accompanying notes to financial statements.
  

 
4
 
Table of Contents

Lowe's 401(k) Plan
      
     
       
   
Year Ended
  
   
December 31, 2012
  
Additions
      
Investment income:
      
Net appreciation in fair value of investments
   $ 731,639,280  
Dividends
     41,355,744  
Interest
     8,133,295  
Total investment income
     781,128,319  
         
Contributions:
        
Participant contributions
     219,668,230  
Employer contributions
     142,443,434  
Total contributions
     362,111,664  
         
Transfers from the Allied Trade Group, Inc. defined contribution plan
     636,663  
         
Total additions
     1,143,876,646  
         
Deductions
        
Benefits paid to participants
     499,559,645  
         
Total deductions
     499,559,645  
         
Net increase in net assets
     644,317,001  
         
Net assets available for benefits
        
Beginning of year
     2,875,229,424  
End of year
   $ 3,519,546,425  
         
         
See accompanying notes to financial statements.
  

 
5
 
Table of Contents

Lowe’s 401(k) Plan
Notes to Financial Statements

Note 1 - Description of the Plan

The following description of the Lowe's 401(k) Plan (the Plan) provides only general information.  Participants should refer to the Plan document and summary plan description for more complete descriptions of the Plan's provisions.

General - The Plan, adopted effective February 1, 1984, is a defined contribution plan covering substantially all employees of Lowe’s Companies, Inc. and subsidiaries (the Plan Sponsor or the Company).  An employee of the Plan Sponsor is eligible to participate in the Plan six months after the employee’s original hire date.  The Administrative Committee of Lowe’s Companies, Inc. (the Administrative Committee), as appointed by the Board of Directors, controls the management and administration of the Plan.  The Plan’s trustee and recordkeeper is Wells Fargo Bank, N.A (Wells Fargo).  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and is a safe harbor-designed plan.

On June 30, 2012, the Board of Directors of Allied Trade Group, Inc. (ATG), a subsidiary of the Company, approved the resolution to merge the ATG 401(k) plan into the Plan.  Effective July 2, 2012, all assets of the ATG 401(k) plan, totaling $636,663, were transferred to the Plan.  Participants in the former ATG 401(k) plan were fully vested on the merger date.

Contributions - Each year, participants may contribute from 1% to 50% of their pre-tax annual compensation, as defined by the Plan, subject to the Internal Revenue Code limitations.  Eligible employees hired or rehired prior to November 1, 2012, were automatically enrolled as participants at a contribution rate of 1% of their pre-tax annual compensation unless they elected otherwise.  Eligible employees hired or rehired November 1, 2012, or later must make an active election to participate in the Plan. Participants age 50 and older, or who reach age 50 during the Plan year, are eligible to contribute an additional pre-tax dollar amount per year in addition to the deferral contribution.  For 2012, the maximum annual amount of catch up that could be contributed was $5,500.  The Company makes contributions to the Plan each payroll period, based upon a matching formula applied to employee deferrals (the Company Match).  The Company Match formula is as follows:  the first 3% of contributions are matched by the Plan Sponsor at the rate of 100%; the next 2% of contributions are matched at the rate of 50%; and the next 1% of contributions are matched at the rate of 25%.  Participants are eligible to receive the Company Match pursuant to the terms of the Plan.  Participants may also contribute amounts representing eligible rollover distributions from other qualified plans.

Participant Accounts - Individual accounts are maintained for each Plan participant.  Each participant's account is credited with the participant's contribution, the Company Match, and an allocation of Plan earnings and charged with benefit payments and an allocation of Plan losses.  Allocations are based on participant earnings or account balances.  The benefit to which a participant is entitled to is the benefit that can be provided from the participant’s vested account balance.

Vesting - All participants are 100% vested in the Plan at all times.

Investments – As of December 31, 2012, the 22 investment options to which participants could direct their contributions included Lowe’s Companies, Inc. common stock, one stable value fund, 11 target retirement date funds (collective trusts), seven mutual funds consisting of two small-cap funds, one mid-cap fund, two large-cap funds, one intermediate-term bond fund, and one international fund, and two separate accounts which are privately managed investment accounts designed to mirror the performance of specific mutual funds.  Excess cash is held in a non-interest bearing cash account.

The plan’s collective trust investments are designed to offer a diversified portfolio within a single fund that adjusts its underlying asset mix over time, decreasing exposure to equities and increasing exposure to bonds as each fund’s target retirement date approaches.  There are currently no redemption restrictions on these investments.

Payment of Benefits - Subsequent to termination of service, a participant with a vested account value of $1,000 or less will receive a lump-sum distribution equal to the participant’s vested account balance.  If the vested account value is greater than $1,000, a participant may elect to receive a lump-sum distribution equal to the participant’s vested account balance.  If the participant does not make such an election and the vested account value is $5,000 or less, the Plan
 
 
6
 

performs a direct rollover to an individual retirement account designated by the participant or, if the participant has not designated an individual retirement account, to an individual retirement account designated by the Administrative Committee.  If the vested account value is greater than $5,000, the participant’s vested account balance remains in the Plan and is not distributed without the participant’s consent until the participant reaches age 62. The Plan allows for in-service withdrawals to participants under age 59½ only in cases of financial hardship.   Such withdrawals must total at least $1,000 and be approved by the Plan's recordkeeper or the Administrative Committee.  Participants who have attained age 59½ are entitled to a one-time in-service withdrawal of their accumulated balances.

The Plan allows for a one-time in-service withdrawal to participants in the former Lowe’s Companies Employee Stock Ownership Plan (the ESOP) who have attained 20 or more years of service with the Plan Sponsor.  The ESOP was merged into the Plan effective September 13, 2002.  Eligible participants may withdraw up to 50% of their former ESOP account balance by requesting a distribution through the Retirement Service Center.  The distribution may be transferred to either an IRA or paid directly to the participant.

Plan Year - The Plan year is January 1 to December 31.

Note 2 - Summary of Significant Accounting Policies

Basis of Accounting - The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein.  Actual results may differ from these estimates.

Risks and Uncertainties - The Plan utilizes various investment instruments.  Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the value of the participants’ account balances and the amounts reported in the financial statements.

Investment Valuation and Income Recognition - The Plan’s investments are stated at fair value.  Refer to Note 3 for additional details regarding the Plan’s valuation methods.

The fully benefit-responsive stable value fund held at December 31, 2012, and the investment contract held at December 31, 2011, are stated at fair value and then adjusted to be presented on a contract value basis in the statements of net assets available for benefits and the statement of changes in net assets available for benefits.

Purchases and sales of securities are recorded on a trade-date basis.  Interest and dividend income are recorded on an accrual basis.  Dividends are accrued based on the ex-dividend date.  Interest earned on the stable value fund held at December 31, 2012, and the investment contract held at December 31, 2011, is reinvested on a daily basis.

Investment management expenses charged to the Plan for investments in the mutual funds, separate accounts and collective trusts are deducted from income earned on a daily basis and are not separately reflected.  Consequently, investment management expenses are reflected as a reduction of investment return for such investments.

Payments of Benefits - Benefit payments to participants are recorded upon distribution.  Amounts allocated to accounts of persons who have elected to withdraw from the Plan, but have not yet been paid, were $131,579 and $974,667 at December 31, 2012, and 2011, respectively.

Administrative Expenses - As provided by the Plan document, administrative expenses (excluding certain investment management expenses) of the Plan are paid by the Plan Sponsor.

Excess Contributions Payable - The Plan is required to return contributions received during the Plan year in excess of the IRC limits.  There were no excess contributions as of December 31, 2012, and December 31, 2011.

 
7
 

Note 3 - 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

The following tables present the Plan’s participant-directed investments measured at fair value on a recurring basis as of December 31, 2012, and 2011, respectively:

       
Fair Value Measurements at Reporting Date Using
   
December 31, 2012
  
Level 1
  
Level 2
  
Level 3
Participant-directed investments at fair value:
                
Common stock
   $ 1,851,440,502   $ 1,851,440,502   $ -   $ -
Mutual funds:
                        
   Large-cap
     161,220,511     161,220,511     -     -
   Mid-cap
     168,759,545     168,759,545     -     -
   Small-cap
     89,379,268     89,379,268     -     -
   Intermediate bond
     47,174,517     47,174,517     -     -
   International
     106,691,948     106,691,948     -     -
Collective trusts:
                        
   Target retirement date
     584,022,126     -     584,022,126     -
Separate accounts: (1) 
                        
   U.S. equities
     221,961,143     221,961,143     -     -
   International equities
     18,458,827     18,458,827     -     -
   Money market mutual funds
     11,173,422     11,173,422     -     -
   Corporate bonds
     404,337     404,337     -     -
   Exchange traded funds
     401,479     401,479     -     -
   Accrued income receivable
     280,876     280,876     -     -
   Receivables for investment securities sold
     322,003     322,003     -     -
   Payables for investment securities purchased
     (718,010 )   (718,010 )   -     -
   Accrued expenses
     (302,774 )   (302,774 )   -     -
Galliard Stable Value Fund
     273,020,370     -     273,020,370     -
Total participant-directed investments at fair value
   $ 3,533,690,090   $ 2,676,647,594   $ 857,042,496   $ -

 
8
 

       
Fair Value Measurements at Reporting Date Using
   
December 31, 2011
  
Level 1
  
Level 2
  
Level 3
Participant-directed investments at fair value:
                
Common stock
   $ 1,511,480,089   $ 1,511,480,089   $ -   $ -
Mutual funds:
                        
   Large-cap
     246,194,773     246,194,773     -     -
   Mid-cap
     250,214,995     250,214,995     -     -
   Small-cap
     73,692,158     73,692,158     -     -
   Intermediate bond
     23,865,249     23,865,249     -     -
   International
     91,167,447     91,167,447     -     -
Collective trusts:
                        
   Target retirement date
     443,646,589     -     443,646,589     -
Investment contract
     250,299,905     -     250,299,905     -
Total participant-directed investments at fair value
   $ 2,890,561,205   $ 2,196,614,711   $ 693,946,494   $ -

(1) The balances included here represent the fair values of the underlying securities of the American Century Value Account and the T. Rowe Price Mid-Cap Value Account.

When available, quoted prices in active markets are used to determine fair value.  When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy.  When quoted prices are not available, fair values are determined using pricing models, and the inputs to those pricing models are based on observable market inputs.

The Plan’s investments in common stock are valued based upon the closing price reported on the recognized securities exchange on which the individual security is traded.  The Plan’s investments in mutual funds are valued at the quoted market prices, which represent the net asset values of shares held by the Plan.  Mutual funds held by the Plan are open-ended mutual funds that are registered with the Securities and Exchange Commission and are deemed to be actively traded.  The Plan’s investments in separate accounts are valued based on the fair value of the underlying investments. The underlying investments consist of marketable securities and were valued based upon the closing price reported on the recognized securities exchange on which the individual security is traded.  The Plan’s investments in the target retirement date funds were valued at the net asset value of units of a bank collective trust. Unit values are determined by the organization sponsoring such collective trusts by dividing the collective trusts’ net assets at fair value by its units outstanding at each valuation date.  These funds were valued using the quoted prices of the underlying securities, which represent the net asset value of shares held by the Plan.  The stable value fund held at December 31, 2012, was valued at the net asset value of units of the collective trust. The net asset value is based on the fair value of the underlying investments held by the fund less its liabilities. The fair value of the benefit-responsive investment contract held at December 31, 2011, was determined based on the Plan’s ownership percentage applied to the value of the investment contract.  The value of the contract was determined based on the fair value of the underlying assets owned under the investment contract, consisting primarily of fixed income securities.  The fair values of the underlying securities were measured using closing sales prices reported on recognized securities exchanges, when such information was available.  When quoted prices in active markets were not available, the fair values of the underlying securities were determined using pricing models and the inputs to those pricing models were based on observable market inputs such as interest rates and credit standing of the issuer or counter-party.

For the years ended December 31, 2012 and December 31, 2012, there were no significant transfers between Levels 1, 2 or 3.

Note 4 - Investments

The following table presents the fair value of investments that represent 5% or more of the Plan's net assets available for benefits as of December 31, 2012, and 2011:

   
December 31, 2012
  
December 31, 2011
Lowe's Companies, Inc. common stock (1)
  
$
 1,851,440,502 
  
$
 1,511,480,089 
Galliard Stable Value Fund
  
$
 273,020,370 
  
$
 - 
Investment Contract -  Metropolitan Life Insurance Company, #25066 (2) 
  
$
 - 
  
$
 250,299,905 
Mutual fund - T. Rowe Price Mid-Cap Growth Fund (2)
  
$
 - 
  
$
 150,369,540 

(1) Represents a party-in-interest to the Plan. The Plan held 52,123,888 shares and 59,553,983 shares at December 31, 2012, and 2011, respectively.
(2) The Plan did not hold this investment at December 31, 2012. Balance presented for comparative purposes only.
 
9
 

During the year ended December 31, 2012, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by $731,639,280
as follows:

   
December 31, 2012
  
Common stock
   $ 558,476,673  
Mutual funds:
        
Large-cap
     24,312,463  
Mid-cap
     23,650,343  
Small-cap
     11,399,803  
Intermediate bond
     1,733,999  
International
     15,459,058  
Separate accounts
     31,721,715  
Collective trusts:
        
Target retirement date
     64,885,226  
Net appreciation in fair value of investments
   $ 731,639,280  

Note 5 - Fully Benefit-Responsive Investments

Effective January 2012, the Plan terminated its investment contract with Metropolitan Life Insurance Company (MetLife) and transferred the existing balances to the Galliard Stable Value Fund (the Fund).

The Fund is a separate account sponsored by Galliard Capital Management Inc. (Galliard).  The beneficial interest of each participant is represented by units, with each unit representing an equal undivided interest in the underlying assets.  Unit values are calculated daily and reflect the investment experience of the assets on that day.  All contributions, interest, dividend or other income is reinvested in the Fund on a daily basis.  Participants ordinarily may direct either the withdrawal or transfer of all or a portion of their investment at contract value.  Contract value represents contributions made to the Fund, plus earnings, less participant withdrawals and administrative expenses.

The Fund is an investment option that seeks to provide safety of principal and a stable credited rate of interest, while generating competitive returns over time compared to other comparable investments.  The Fund invests in assets which include investment grade fixed income securities or bond funds, and enters into wrap contracts issued by third parties.  As of December 31, 2012 the Fund held five separate wrap contracts with insurance companies.  A wrap contract is an agreement by another party, such as a bank or insurance company, to make payments to the Fund in certain circumstances.  Wrap contracts are designed to allow a stable value portfolio to maintain a constant net asset value and protect a portfolio in extreme circumstances.

The wrap contracts contain provisions that limit the ability of the Fund to transact at contract value upon the occurrence of certain events which include: a substantive modification of the Fund or its administration; the complete or partial termination of the Plan or its merger with another plan; the transfer of assets from the Fund directly into a competing investment option; the redemption of all or a portion of the interest in the Fund due to the removal of a specifically identifiable group of employees from coverage under the participating plan, the closing or sale of a subsidiary, the bankruptcy or insolvency of a plan sponsor, the merger of the plan with another plan, or the plan sponsor's establishment of another tax qualified defined contribution plan.  Plan management believes that the occurrence of events that would cause the Fund to transact at less than contract value is not probable.

In the event the wrap contracts fail to perform as intended, the Fund’s net asset value may decline if the market value of its assets declines.  The Fund’s ability to receive amounts due pursuant to these wrap contracts is dependent on the third-party issuer’s ability to meet their financial obligations, which may be affected by future economic and regulatory developments.  The Fund is unlikely to maintain a stable net asset value if, for any reason, it cannot obtain or maintain wrap contracts covering all of its underlying assets.

The wrap contracts are contractually obligated to pay the principal and a guaranteed interest rate for a specified period.  Such interest rates are reviewed on a quarterly basis for resetting.  The crediting interest rate is based on a formula agreed upon with the wrap contract providers, but may not be less than 0%.  The crediting rate of the contract will track current market yields on a trailing basis.  The average yield earned by the Fund at December 31, 2012 representing the annualized earnings of all
 
10
 

investments in the Fund divided by the period end fair value was 0.93%.  The average yield earned by the Fund at December 31, 2012 representing the annualized earnings credited to participants in the Fund (the crediting rate), divided by the period end fair value of all investments in the Fund was 3.27%.

Both the Plan and the wrap providers have the right to cancel the wrap contracts under certain circumstances.  The wrap contracts contain termination provisions, allowing the Fund or the wrap providers to terminate with notice, at any time at fair value, and provide for automatic termination of the contract if the contract value or the fair value of the underlying portfolio equals zero. The wrap providers are obligated to pay the excess contract value when the fair value of the underlying portfolio equals zero. In addition, if the Fund defaults on its obligations under these wrap agreements, and such default is not corrected within the time permitted by these contracts, then the contracts may be terminated by the wrap provider and the Fund will receive the fair value as of the date of termination.

Prior to February 2012 and during the 2011 Plan year, the Plan held an investment contract with Metropolitan Life Insurance Company (MetLife).  MetLife maintained contributions in a general account, which was credited with earnings on the underlying investments and was charged for participant withdrawals and administrative expenses.  The contract was considered fully benefit-responsive and is included in the financial statements at fair value and then adjusted to contract value as reported to the Plan by MetLife.  Contract value represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses.  There were no reserves against contract value for credit risk of the contract issuer or otherwise.

MetLife was contractually obligated to pay the principal and specified interest rate that is guaranteed to the Plan.  The interest rate credited to participants (Participant Rate) was adjusted annually on January 1 by MetLife after considering the current market value of the underlying funds, the anticipated market rates of the funds’ investments, expected payments into and out of the funds, the amortization of any differences between market value and guaranteed value, and the anticipated expenses.  The Participant Rate tracked current market rates (Market Rate) on a trailing basis, but could be no less than 0%.  The average yield earned by the Fund at 2011 representing the annualized earnings of all investments in the Fund divided by the period end fair value was 5.95%. The average yield earned by the Fund at 2011 representing the annualized earnings credited to participants in the Fund (the crediting rate), divided by the period end fair value of all investments in the Fund was 3.22%.

Note 6 - Plan Termination

Although it has not expressed any intention to do so, the Plan Sponsor has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA.

Note 7 - Exempt Party-in-Interest Transactions

Certain investments of the Plan include shares of common stock of Lowe’s Companies, Inc., the Plan Sponsor, shares of common stock of Wells Fargo, the Plan’s trustee and recordkeeper, and funds managed by Wells Fargo. Transactions in these investments qualify as exempt party-in-interest transactions. Fees paid for investment management services were included as a reduction of the return earned on each investment.

At December 31, 2012, and 2011, the Plan held 52,123,888 shares and 59,553,983 shares, respectively, of common stock of Lowe’s Companies, Inc., with a cost basis of $866,824,894 and $900,775,644, respectively.  For the year ended December 31, 2012, the Plan recorded dividend income of $33,889,045 from these shares.

Note 8 - Tax Status

On April 21, 2010, a favorable determination letter response was received from the Internal Revenue Service (IRS) indicating that the Plan and related trust were designed in accordance with applicable regulations of the Internal Revenue Code.  The Plan has been amended since receiving the determination letter.  On January 31, 2013 the Plan Sponsor filed a Determination Letter Application with the IRS for the Plan document in effect prior to January 1, 2013, as amended as well as the restatement of the Plan effective January 1, 2013.  The Plan Sponsor, the Plan Sponsor’s benefits counsel and the Plan’s tax counsel continue to believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code.

Under GAAP, Company Management is required to evaluate uncertain tax positions taken by the Plan.  The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS or Treasury.  Company Management has analyzed the tax positions taken by the Plan, and has

 
11
 
 
concluded that as of December 31, 2012, there are no uncertain positions taken or expected to be taken.  The Plan has recognized no interest or penalties related to uncertain tax positions.  The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.  Company Management believes it is no longer subject to income tax examinations for years prior to 2009.

Note 9 - Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of the Investments per the financial statements to the Form 5500 as of December 31, 2012 and 2011:

   
December 31, 2012
    
December 31, 2011
  
Net assets available for benefits:
            
Participant-directed investments at fair value
   $ 3,533,690,090     $ 2,890,561,205  
Adjustment from fair value to contract value for fully benefit-responsive stable value fund
                
(Notes 2 and 5)
     (14,274,056 )     -  
Adjustment from fair value to contract value for fully benefit-responsive investment contract
                
(Notes 2 and 5)
     -       (15,514,051 )
Total Investments (Current Value column) per Form 5500 Schedule of Assets
   $ 3,519,416,034     $ 2,875,047,154  

Note 10: Delinquent Participant Contributions:

During the 2011 Plan year, salary deferral contributions in the amount of $1,721 for 66 participants were not deposited into the Plan within the time frame prescribed by DOL. The failure to timely deposit these salary deferral contributions into the Plan is prohibited according to ERISA. In 2012, the Company reimbursed the Plan for the delayed deferral contributions in the amount of $1,721 plus lost interest related to the usage of funds. There were no delinquent participant contributions during the 2012 Plan year.

 
12
 
Table of Contents
 
Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
               
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
                 
*Lowe's Companies, Inc.
  
Common Stock
    
**
  
$
 1,851,440,502 
                 
Galliard Stable Value Fund:
                
                 
Security-backed contracts:
                
ING Life Insurance and Annuity Company
  
3.96%
    
**
    
 38,575,256 
Metropolitan Life Insurance Company
  
3.98%
    
**
    
 55,336,244 
New York Life Insurance Company
  
3.10%
    
**
    
 24,706,123 
The Prudential Insurance Company of America
  
3.45%
    
**
    
 55,460,780 
United of Omaha Life Insurance Company
  
4.89%
    
**
    
 56,226,440 
Total underlying securities of security-backed contracts at fair value
        
$
 230,304,843 
                 
   
Receivables for investment securities sold
    
**
    
 1,476,279 
   
Payables for investment securities purchased
    
**
    
                 (296,821)
   
Accrued expenses
    
**
    
                   (87,808)
   
Wrapper contract fee payable
    
**
    
                   (99,676)
Total security-backed contracts
            
$
 231,296,817 
                 
   
Adjustment from fair value to contract value for fully benefit-responsive stable value fund
  
**
    
            (14,274,056)
Total security-backed contracts at contract value
            
$
 217,022,761 
                 
Collective Trust Fund:
                
*Wells Fargo Short-term Investment Fund G
  
0.27%
    
**
    
 41,723,553 
Total Galliard Stable Value Fund
            
$
 258,746,314 
                 
American Funds EuroPacific Growth Fund
  
Mutual Fund
    
**
    
 106,691,948 
                 
American Funds New Economy R6 Fund
  
Mutual Fund
    
**
    
 54,019,953 
                 
Eagle Small-Cap Growth Fund
  
Mutual Fund
    
**
    
 56,990,386 
                 
PIMCO Total Return Fund
  
Mutual Fund
    
**
    
 47,174,517 
                 
T. Rowe Price Institutional Mid-Cap Equity Growth Fund
  
Mutual Fund
    
**
    
 168,759,545 
                 
T. Rowe Price Small-Cap Value Fund
  
Mutual Fund
    
**
    
 32,388,882 
                 
Vanguard Institutional Index Fund
  
Mutual Fund
    
**
    
 107,200,558 
                 
Total Mutual Funds
            
$
 573,225,789 
                 
Vanguard Fiduciary Target Retirement Institutional
  
Collective Trust
    
**
    
 25,441,081 
                 
Vanguard Fiduciary Target Retirement 2010
  
Collective Trust
    
**
    
 21,325,123 

 
13
 

Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
Schedule of Assets (Held at End of Year)
                
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
Vanguard Fiduciary Target Retirement 2015
  
Collective Trust
    
**
    
 49,114,034 
                 
Vanguard Fiduciary Target Retirement 2020
  
Collective Trust
    
**
    
 75,904,329 
                 
Vanguard Fiduciary Target Retirement 2025
  
Collective Trust
    
**
    
 76,965,909 
                 
Vanguard Fiduciary Target Retirement 2030
  
Collective Trust
    
**
    
 68,399,701 
                 
Vanguard Fiduciary Target Retirement 2035
  
Collective Trust
    
**
    
 61,749,357 
                 
Vanguard Fiduciary Target Retirement 2040
  
Collective Trust
    
**
    
 54,976,667 
                 
Vanguard Fiduciary Target Retirement 2045
  
Collective Trust
    
**
    
 59,007,274 
                 
Vanguard Fiduciary Target Retirement 2050
  
Collective Trust
    
**
    
 84,937,851 
                 
Vanguard Fiduciary Target Retirement 2055
  
Collective Trust
    
**
    
 6,200,800 
                 
Total Collective Trusts
            
$
 584,022,126 
                 
American Century Value Account:
                
                 
ABB Ltd.
  
Common Stock
    
**
    
 334,116 
ACE Ltd.
  
Common Stock
    
**
    
 359,818 
The ADT Corporation
  
Common Stock
    
**
    
 445,653 
Aetna Inc.
  
Common Stock
    
**
    
 542,729 
The Allstate Corporation
  
Common Stock
    
**
    
 844,253 
Apache Corp.
  
Common Stock
    
**
    
 1,606,895 
Applied Materials, Inc.
  
Common Stock
    
**
    
 1,568,916 
AT&T, Inc.
  
Common Stock
    
**
    
 3,017,180 
Avery Dennison Corporation
  
Common Stock
    
**
    
 276,881 
Barrick Gold Corporation
  
Common Stock
    
**
    
 548,607 
Becton, Dickinson and Company
  
Common Stock
    
**
    
 1,046,260 
Bemis Company, Inc.
  
Common Stock
    
**
    
 887,125 
Berkshire Hathaway Inc.
  
Common Stock
    
**
    
 1,474,660 
The Boeing Company
  
Common Stock
    
**
    
 358,035 
Boston Scientific Corporation
  
Common Stock
    
**
    
 1,327,779 
Campbell Soup Company
  
Common Stock
    
**
    
 280,306 
CareFusion Corporation
  
Common Stock
    
**
    
 2,757,170 
CenturyLink, Inc.
  
Common Stock
    
**
    
 431,963 
The Charles Schwab Corporation
  
Common Stock
    
**
    
 1,272,885 
Chevron Corporation
  
Common Stock
    
**
    
 3,774,519 
The Chubb Corporation
  
Common Stock
    
**
    
 752,221 
Cigna Corporation
  
Common Stock
    
**
    
 231,696 
Cisco Systems, Inc.
  
Common Stock
    
**
    
 2,370,871 

 
14
 

Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
Schedule of Assets (Held at End of Year)
                
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
The Clorox Company
  
Common Stock
    
**
    
 345,525 
Comerica Incorporated
  
Common Stock
    
**
    
 1,246,124 
Commerce Bancshares, Inc.
  
Common Stock
    
**
    
 686,300 
ConAgra Foods, Inc.
  
Common Stock
    
**
    
 327,657 
Corrections Corporation of America
  
Common Stock
    
**
    
 589,334 
CSX Corp.
  
Common Stock
    
**
    
 403,163 
CVS Caremark Corporation
  
Common Stock
    
**
    
 492,348 
Devon Energy Corporation
  
Common Stock
    
**
    
 808,337 
Diebold, Incorporated
  
Common Stock
    
**
    
 403,899 
Dr Pepper Snapple Group, Inc.
  
Common Stock
    
**
    
 965,245 
Eli Lilly and Company
  
Common Stock
    
**
    
 577,833 
Emerson Electric Co.
  
Common Stock
    
**
    
 411,870 
Energizer Holdings Inc.
  
Common Stock
    
**
    
 159,000 
Exxon Mobil Corporation
  
Common Stock
    
**
    
 6,266,047 
Franklin Resources Inc.
  
Common Stock
    
**
    
 185,533 
Freeport-McMoRan Copper & Gold Inc.
  
Common Stock
    
**
    
 344,120 
General Dynamics Corp.
  
Common Stock
    
**
    
 1,046,462 
General Electric Company
  
Common Stock
    
**
    
 4,063,181 
General Mills, Inc.
  
Common Stock
    
**
    
 330,150 
General Motors Company
  
Common Stock
    
**
    
 596,666 
The Goldman Sachs Group, Inc.
  
Common Stock
    
**
    
 1,373,694 
Google Inc.
  
Common Stock
    
**
    
 301,482 
Great Plains Energy Incorporated
  
Common Stock
    
**
    
 513,599 
Halliburton Company
  
Common Stock
    
**
    
 812,579 
HCC Insurance Holdings, Inc.
  
Common Stock
    
**
    
 641,612 
Helmerich & Payne, Inc.
  
Common Stock
    
**
    
 241,291 
Hewlett-Packard Company
  
Common Stock
    
**
    
 472,587 
The Home Depot, Inc.
  
Common Stock
    
**
    
 2,320,736 
Honda Motor Co., Ltd.
  
Common Stock
    
**
    
 465,408 
Hospira Inc.
  
Common Stock
    
**
    
 943,760 
Imperial Oil Ltd.
  
Common Stock
    
**
    
 2,411,282 
Intel Corporation
  
Common Stock
    
**
    
 583,850 
International Game Technology
  
Common Stock
    
**
    
 501,788 
International Speedway Corp.
  
Common Stock
    
**
    
 794,241 
Japan Airlines Co. Ltd.
  
Common Stock
    
**
    
 816,426 
Johnson & Johnson
  
Common Stock
    
**
    
 3,561,991 
JPMorgan Chase & Co.
  
Common Stock
    
**
    
 3,886,684 
Kellogg Company
  
Common Stock
    
**
    
 596,310 
KeyCorp
  
Common Stock
    
**
    
 404,429 
Kimberly-Clark Corporation
  
Common Stock
    
**
    
 290,101 
Koninklijke Philips Electronics N.V.
  
Common Stock
    
**
    
 1,107,248 

 
15
 

Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
Schedule of Assets (Held at End of Year)
                
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
Kraft Foods Group, Inc.
  
Common Stock
    
**
    
 609,662 
L-3 Communications Holdings Inc.
  
Common Stock
    
**
    
 132,706 
Lifepoint Hospitals Inc.
  
Common Stock
    
**
    
 804,339 
Marsh & McLennan Companies, Inc.
  
Common Stock
    
**
    
 1,222,410 
Marvell Technology Group Ltd.
  
Common Stock
    
**
    
 287,126 
Medtronic, Inc.
  
Common Stock
    
**
    
 1,523,032 
Merck & Co. Inc.
  
Common Stock
    
**
    
 2,090,929 
MetLife, Inc.
  
Common Stock
    
**
    
 1,234,657 
Microchip Technology Inc.
  
Common Stock
    
**
    
 363,867 
Molex Incorporated
  
Common Stock
    
**
    
 472,290 
Mondelez International, Inc.
  
Common Stock
    
**
    
 851,284 
NetApp, Inc.
  
Common Stock
    
**
    
 277,190 
Newmont Mining Corporation
  
Common Stock
    
**
    
 288,207 
Northern Trust Corporation
  
Common Stock
    
**
    
 3,024,899 
Northrop Grumman Corporation
  
Common Stock
    
**
    
 655,594 
NV Energy, Inc.
  
Common Stock
    
**
    
 613,531 
Occidental Petroleum Corporation
  
Common Stock
    
**
    
 1,302,523 
Oracle Corporation
  
Common Stock
    
**
    
 397,574 
Peabody Energy Corp.
  
Common Stock
    
**
    
 339,171 
Pfizer Inc.
  
Common Stock
    
**
    
 3,993,564 
PG&E Corp.
  
Common Stock
    
**
    
 1,513,058 
The PNC Financial Services Group, Inc.
  
Common Stock
    
**
    
 2,360,622 
Procter & Gamble Co.
  
Common Stock
    
**
    
 3,476,104 
Prudential Financial, Inc.
  
Common Stock
    
**
    
 759,473 
QLogic Corp.
  
Common Stock
    
**
    
 359,699 
Reinsurance Group of America Inc.
  
Common Stock
    
**
    
 573,467 
Republic Services, Inc.
  
Common Stock
    
**
    
 3,388,524 
Rogers Communications Inc.
  
Common Stock
    
**
    
 660,551 
SanDisk Corp.
  
Common Stock
    
**
    
 308,056 
Schlumberger Limited
  
Common Stock
    
**
    
 335,294 
Siemens AG
  
Common Stock
    
**
    
 207,207 
Sonoco Products Co.
  
Common Stock
    
**
    
 497,710 
Southwest Airlines Co.
  
Common Stock
    
**
    
 987,648 
Southwestern Energy Co.
  
Common Stock
    
**
    
 607,828 
Speedway Motorsports Inc.
  
Common Stock
    
**
    
 484,267 
State Street Corporation
  
Common Stock
    
**
    
 1,013,677 
Stryker Corporation
  
Common Stock
    
**
    
 850,313 
Sysco Corporation
  
Common Stock
    
**
    
 706,873 
Target Corp.
  
Common Stock
    
**
    
 944,649 
TE Connectivity Ltd.
  
Common Stock
    
**
    
 539,094 
Teradyne Inc.
  
Common Stock
    
**
    
 269,953 

 
16
 

Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
Schedule of Assets (Held at End of Year)
                
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
Texas Instruments Inc.
  
Common Stock
    
**
    
 66,521 
Total SA
  
Common Stock
    
**
    
 2,876,865 
Toyota Motor Corporation
  
Common Stock
    
**
    
 1,153,351 
The Travelers Companies, Inc.
  
Common Stock
    
**
    
 423,235 
Tyco International Ltd.
  
Common Stock
    
**
    
 595,501 
Ultra Petroleum Corp.
  
Common Stock
    
**
    
 1,047,805 
United Parcel Service, Inc.
  
Common Stock
    
**
    
 198,924 
UnitedHealth Group Incorporated
  
Common Stock
    
**
    
 1,213,891 
Unum Group
  
Common Stock
    
**
    
 611,421 
U.S. Bancorp
  
Common Stock
    
**
    
 1,585,821 
Wal-Mart Stores Inc.
  
Common Stock
    
**
    
 407,538 
Waste Management, Inc.
  
Common Stock
    
**
    
 1,138,894 
*Wells Fargo & Company
  
Common Stock
    
**
    
 2,819,406 
Westar Energy, Inc.
  
Common Stock
    
**
    
 1,982,965 
Western Digital Corporation
  
Common Stock
    
**
    
 309,242 
Whirlpool Corp.
  
Common Stock
    
**
    
 306,573 
Xcel Energy Inc.
  
Common Stock
    
**
    
 1,386,115 
Zimmer Holdings, Inc.
  
Common Stock
    
**
    
 1,132,553 
SPDR S&P 500 ETF Trust
  
Exchange Traded Fund
    
**
    
 401,479 
*Wells Fargo Advantage 100% Treasury Money Market Fund
Money Market Mutual Fund
    
**
    
 3,407,870 
             
$
 134,195,022 
                 
   
Accrued income receivable
    
**
    
217,215 
   
Receivables for investment securities sold
    
**
    
311,778 
   
Payables for investment securities purchased
    
**
    
                 (503,593)
   
Accrued expenses
    
**
    
                 (156,648)
Total American Century Value Account
            
$
134,063,774 
                 
T. Rowe Price Mid-Cap Value Account:
                
                 
ACCO Brands Corporation
  
Common Stock
    
**
    
260,313 
ADTRAN, Inc.
  
Common Stock
    
**
    
672,176 
American Electric Power Company, Inc.
  
Common Stock
    
**
    
896,280 
AngloGold Ashanti Limited
  
Common Stock
    
**
    
304,289 
Applied Materials, Inc.
  
Common Stock
    
**
    
1,412,840 
Archer-Daniels-Midland Company
  
Common Stock
    
**
    
1,049,037 
ASML Holding N.V.
  
Common Stock
    
**
    
391,806 
Automatic Data Processing, Inc.
  
Common Stock
    
**
    
108,319 
Avon Products, Inc.
  
Common Stock
    
**
    
1,319,684 
AVX Corporation
  
Common Stock
    
**
    
564,872 
AXIS Capital Holdings Limited
  
Common Stock
    
**
    
273,656 

 
17
 

Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
Schedule of Assets (Held at End of Year)
                
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
BankUnited, Inc.
  
Common Stock
    
**
    
589,004 
Beam, Inc.
  
Common Stock
    
**
    
372,649 
Brown-Forman Corporation Class B
  
Common Stock
    
**
    
417,450 
Cablevision Systems Corporation
  
Common Stock
    
**
    
1,150,380 
Calpine Corporation
  
Common Stock
    
**
    
1,270,913 
Campbell Soup Company
  
Common Stock
    
**
    
477,993 
Capitol Federal Financial, Inc.
  
Common Stock
    
**
    
762,188 
CarMax, Inc.
  
Common Stock
    
**
    
484,266 
Charter Communications, Inc. Class A
  
Common Stock
    
**
    
1,219,840 
Cintas Corporation
  
Common Stock
    
**
    
1,063,400 
CIT Group, Inc.
  
Common Stock
    
**
    
1,989,960 
CNA Financial Corporation
  
Common Stock
    
**
    
450,961 
Commerce Bancshares, Inc.
  
Common Stock
    
**
    
363,923 
CONSOL Energy, Inc.
  
Common Stock
    
**
    
1,190,910 
CoreLogic, Inc.
  
Common Stock
    
**
    
1,599,048 
Cousins Properties Incorporated
  
Common Stock
    
**
    
396,625 
DreamWorks Animation SKG, Inc. Class A
  
Common Stock
    
**
    
1,040,596 
Duke Energy Corporation
  
Common Stock
    
**
    
429,565 
E*Trade Financial Corporation
  
Common Stock
    
**
    
1,615,475 
Electronic Arts, Inc.
  
Common Stock
    
**
    
142,394 
Enstar Group Limited
  
Common Stock
    
**
    
89,584 
Entergy Corporation
  
Common Stock
    
**
    
484,500 
Exterran Holdings, Inc.
  
Common Stock
    
**
    
1,878,544 
Federated Investors, Inc. - Class B
  
Common Stock
    
**
    
157,794 
Fidelity National Financial, Inc.
  
Common Stock
    
**
    
1,304,670 
First American Financial Corporation
  
Common Stock
    
**
    
1,621,257 
First Horizon National Corporation
  
Common Stock
    
**
    
1,396,319 
FirstEnergy Corp.
  
Common Stock
    
**
    
1,206,864 
Flowers Foods, Inc.
  
Common Stock
    
**
    
1,289,158 
Forest City Enterprises, Inc.
  
Common Stock
    
**
    
395,675 
Forest Laboratories, Inc.
  
Common Stock
    
**
    
1,052,536 
Franco-Nevada Corporation
  
Common Stock
    
**
    
855,378 
General Growth Properties, Inc.
  
Common Stock
    
**
    
418,835 
Gold Fields Limited
  
Common Stock
    
**
    
364,708 
Greenhill & Co, Inc.
  
Common Stock
    
**
    
306,741 
Hasbro, Inc.
  
Common Stock
    
**
    
416,440 
HealthSouth Corporation
  
Common Stock
    
**
    
1,220,158 
Hess Corporation
  
Common Stock
    
**
    
1,366,368 
Hospira, Inc.
  
Common Stock
    
**
    
1,640,100 
Ingersoll-Rand Public Limited Company
  
Common Stock
    
**
    
1,390,840 
International Flavors & Fragrances Inc.
  
Common Stock
    
**
    
1,044,678 

 
18
 

Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
Schedule of Assets (Held at End of Year)
                
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
International Game Technology
  
Common Stock
    
**
    
962,143 
Janus Capital Group Inc.
  
Common Stock
    
**
    
98,832 
Kellogg Company
  
Common Stock
    
**
    
1,083,490 
Kemper Corporation
  
Common Stock
    
**
    
941,050 
Kindred Healthcare, Inc.
  
Common Stock
    
**
    
402,504 
Legg Mason, Inc.
  
Common Stock
    
**
    
977,360 
Lender Processing Services, Inc.
  
Common Stock
    
**
    
1,115,286 
Life Technologies Corporation
  
Common Stock
    
**
    
824,544 
Loews Corporation
  
Common Stock
    
**
    
1,157,300 
M&T Bank Corporation
  
Common Stock
    
**
    
531,738 
ManpowerGroup Inc.
  
Common Stock
    
**
    
1,718,820 
Marsh & McLennan Companies, Inc.
  
Common Stock
    
**
    
1,682,136 
Marvell Technology Group Ltd.
  
Common Stock
    
**
    
386,232 
Mattel, Inc.
  
Common Stock
    
**
    
1,241,418 
McCormick & Company, Incorporated
  
Common Stock
    
**
    
660,712 
MeadWestvaco Corporation
  
Common Stock
    
**
    
1,376,784 
Molex Incorporated
  
Common Stock
    
**
    
1,446,336 
Murphy Oil Corporation
  
Common Stock
    
**
    
1,381,560 
NetApp, Inc.
  
Common Stock
    
**
    
251,625 
Newmont Mining Corporation
  
Common Stock
    
**
    
1,490,724 
Nexen Inc.
  
Common Stock
    
**
    
902,490 
NiSource Inc.
  
Common Stock
    
**
    
761,634 
Northern Trust Corporation
  
Common Stock
    
**
    
2,808,960 
NRG Energy, Inc.
  
Common Stock
    
**
    
2,271,412 
Nucor Corporation
  
Common Stock
    
**
    
474,980 
ON Semiconductor Corporation
  
Common Stock
    
**
    
596,430 
OneBeacon Insurance Group, Ltd.
  
Common Stock
    
**
    
212,670 
Packaging Corporation of America
  
Common Stock
    
**
    
1,419,543 
PBF Energy Inc.
  
Common Stock
    
**
    
717,535 
Pepco Holdings, Inc.
  
Common Stock
    
**
    
392,200 
PPL Corporation
  
Common Stock
    
**
    
1,402,870 
Prologis, Inc.
  
Common Stock
    
**
    
186,099 
QEP Resources, Inc.
  
Common Stock
    
**
    
965,613 
Quest Diagnostics Incorporated
  
Common Stock
    
**
    
903,185 
Raytheon Company
  
Common Stock
    
**
    
811,596 
Sankyo Co. Ltd.
  
Common Stock
    
**
    
297,086 
Scholastic Corporation
  
Common Stock
    
**
    
292,644 
Select Medical Holdings Corporation
  
Common Stock
    
**
    
373,428 
Southwest Airlines Co.
  
Common Stock
    
**
    
2,498,560 
Steris Corporation
  
Common Stock
    
**
    
163,231 
Strayer Education, Inc.
  
Common Stock
    
**
    
527,998 

 
19
 

Lowe's 401(k) Plan
                
EIN: 56-0578072
                
Plan No: 003
                
Form 5500, Schedule H, Part IV, Line 4i -
                
Schedule of Assets (Held at End of Year)
                
As of December 31, 2012
                
                 
Identity of Issue, Borrower, Lessor, or Similar Party
  
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
  
Cost
  
Current Value
SunTrust Banks, Inc.
  
Common Stock
    
**
    
776,790 
Sysco Corporation
  
Common Stock
    
**
    
1,655,818 
Talisman Energy Inc.
  
Common Stock
    
**
    
1,561,274 
TECO Energy, Inc.
  
Common Stock
    
**
    
479,336 
Telephone & Data Systems, Inc.
  
Common Stock
    
**
    
1,221,464 
Tellabs, Inc.
  
Common Stock
    
**
    
352,488 
Tenet Healthcare Corporation
  
Common Stock
    
**
    
787,398 
Textron Inc.
  
Common Stock
    
**
    
1,767,527 
The Babcock & Wilcox Company
  
Common Stock
    
**
    
594,740 
The Clorox Company
  
Common Stock
    
**
    
856,674 
The Gap, Inc.
  
Common Stock
    
**
    
1,353,344 
The Howard Hughes Corporation
  
Common Stock
    
**
    
321,288 
The Kroger Co.
  
Common Stock
    
**
    
2,349,606 
The Progressive Corporation
  
Common Stock
    
**
    
1,095,090 
The Scotts Miracle-Gro Company
  
Common Stock
    
**
    
907,430 
The St. Joe Company
  
Common Stock
    
**
    
676,244 
The Washington Post Company
  
Common Stock
    
**
    
949,546 
Tootsie Roll Industries, Inc.
  
Common Stock
    
**
    
370,837 
Valero Energy Corporation
  
Common Stock
    
**
    
641,456 
Visteon Corporation
  
Common Stock
    
**
    
758,862 
Vulcan Materials Company
  
Common Stock
    
**
    
1,400,145 
Weight Watchers International, Inc.
  
Common Stock
    
**
    
9,739 
Weingarten Realty Investors
  
Common Stock
    
**
    
554,139 
Westamerica Bancorporation
  
Common Stock
    
**
    
834,764 
Weyerhaeuser Company
  
Common Stock
    
**
    
1,516,190 
White Mountains Insurance Group, Ltd.
  
Common Stock
    
**
    
1,699,500 
WMS Industries Inc.
  
Common Stock
    
**
    
336,000 
WPX Energy, Inc.
  
Common Stock
    
**
    
514,848 
Wright Medical Group, Inc.
  
Common Stock
    
**
    
545,740 
Zimmer Holdings, Inc.
  
Common Stock
    
**
    
253,308 
Alcoa
  
5.25%, $281,400 par, due 3/15/2014
    
**
    
404,337 
Northern Institutional Government Select Fund
  
Money Market Mutual Fund
    
**
    
7,765,547 
             
$
118,204,186 
                 
   
Accrued income receivable
    
**
    
63,661 
   
Receivables for investment securities sold
    
**
    
10,225 
   
Payables for investment securities purchased
    
**
    
                 (214,417)
   
Accrued expenses
    
**
    
                 (146,126)
Total T. Rowe Price Mid-Cap Value Account
            
$
117,917,529 
                 
Total Investments
            
$
3,519,416,034 
                 
                 
*    Permitted party-in-interest
                
**  Cost information is not required for participant-directed investments and, therefore, is not included.
            

 
20
 
Table of Contents
 
Lowe’s 401(k) Plan
EIN: 56-0578072
Plan No: 003
Form 5500, Schedule H, Part IV, Line 4a –
Schedule of Delinquent Participant Contributions
For the Year Ended December 31, 2012
 
 
 
 
 
Total that Constitute Nonexempt Prohibited Transactions
 
 
 		  
Participant Contributions Transferred 
Late to the Plan
  
Contributions
Not Corrected
  
Contributions Corrected
Outside VFCP
  
Contributions Pending
Correction
in VFCP
   Total Fully Corrected under VFCP and PTE 2002-51
                     
 
  o
   Check here if late participant loan contributions are included   $ -   $ 1,721   $ -   $ -

 
21
 
Table of Contents
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   
LOWE'S 401(k) PLAN
     
June 28, 2013
  
/s/ Matthew V. Hollifield
Date
  
Matthew V. Hollifield
Senior Vice President and Chief Accounting Officer
 
 
 
22
 
Table of Contents
 
 
 
 
Exhibit No.
 
Description
 
 
 
23
 
Consent of Independent Registered Public Accounting Firm

 
23