* This report is intended to be circulated among the restricted class members of LOWPAC only

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1 Politically InVESTed Lowe s Political Action Committee Annual Report 2017 * This report is intended to be circulated among the restricted class members of LOWPAC only

2 What is a PAC? PACs are regulated by the Federal Election Commission. There are 3,500 registered PACs. Corporate contributions to candidates are illegal. PAC is short for Political Action Comittee PACs allow employees to pool contributions. Why does Lowe s need a Political Action Committee (PAC)? The government touches every part of our business. Corporate contributions to federal and most state candidates are illegal. LOWPAC helps elect individuals who understand our company and are responsive to our shared interests. Purpose Of Lowe s PAC To support policymakers that help our company succeed. Quick Facts About LOWPAC Voluntary Non-partisan Does not contribute to presidential candidates Lowe s matches your contribution to LOWPAC with a $1 to $1 contribution to the Employee Relief Fund (LERF). Why Support For LOWPAC Is Important Our Lowe s employees organized LOWPAC to financially support candidates for elective office who, regardless of political party, understand our industry and our specific concerns. 2

3 Contributions Received Thank You! You invested in LOWPAC to help elect policymakers who understand our business and the specific interests and concerns of our employees. Participation by Region includes only VPSO s, Market Directors, and Store Managers 2017 Employee Contributions $57,869 77% $26,00 53% $15,91 63% $20,066 76% $21,892 73% $23,992 79% $2,656 89% $2,76 60% $20,2 66% $18,351 63% $17,560 68% $23,965 65% $19,810 76% $19,817 81% $23,121 Contributions by Location Participation by Position 63% 37% 63% Lowe s Employees in Stores ($278,210) 37% Lowe's Customer Support Center ($163,31) 100% 96% 68% 100% VPSOs 96% Market Directors 68% Store Managers 3

4 Lowe's Employee Relief Fund Lowe's matches your LOWPAC donation $1 to $1 with a contribution to the LERF Lowe's contributed over $57,000 to the Lowe's Employee Relief Fund in 2017 LERF provides support to employees and their families who have suffered significant financial hardship. LERF contributed $29 million in aid to 26,000 employees and their families since the program s inception in Employees working together to clear hurricane damage for families Houston Mayor Sylvester Turner stops by as 20,000 buckets are delivered to support neighborhoods recovering from Hurricane Harvey

5 Political Expenditures Expenditures by Party Expenditures by Level 21% 13% 11% 68% 68% Republican $39,500 21% Democrat $137,500 11% Other $70,700 87% 2017 Political Expenditures $67,700 92% 87% Federal $565,000 13% State $82,700 Cash on Hand Remaining at End of 2017 $526,378 LOWPAC Candidates Who Won in % 71% 92% Federal 71% State House Speaker Tim Moore (center) and Majority leaders show their love of Lowe s 5

6 Criteria for Recipients Our PAC Board of Advisors is composed of employees from different departments who meet quarterly to govern LOWPAC, using the criteria below to select recipients. LOWPAC transactions are publicly reported through the Federal Election Commission. Issues position on policy issues Constituency presence within the district NC Representative Jeffrey Elmore (second from left) tours store 170 in Wilkesboro, NC with Store Manager Kevin Little (second from right), Craig Dowdle (left) and Pam Hodges Influence ability to make a difference within government Viability ability to succeed Integrity core values Brent Kirby, Chief Supply Chain Officer: As Chairman of our LOWPAC Advisory Board, I work with our team to make sure that every penny of our voluntary budget is used ethically and effectively to help our company and our fellow employees. 6

7 Policy Spotlight Government touches every part of our business. Policies that impact our company include these and many more. Taxes Trade Supply Infrastructure Finance, Swipe Fees Organized Retail Crime Cyber- Security Employment, Health & Safety Let s take a closer look at one of the hot policies at issue right now: Organized Retail Crime Costs retailers $30 billion a year In 2017, after retailers advocated tougher measures to the state capitol, North Carolina enacted a bill against Organized Retail Crime resulting in: NC State Representative Harry Warren speaking about ORC with NC State Representative John Fraley Increased penalties Aggregate multiple charges In 2018, similar bills on Organized Retail Crime will be debated in Colorado, Florida, Indiana, Maryland, and other states. Since 2016 Lowe s strengthened ORC laws in 12 states. 7

8 Strength in Numbers We spoke and Congress acted. This year we mobilized a grassroots effort by asking employees to Congress to oppose a harmful tax proposal called the Border Adjustment Tax. This would have created a new tax increase on Lowe s, our customers, and other retailers by over one trillion dollars over ten years. The results: 1,100 letters were sent to Members of Congress. Congress defeated the Border Adjustment Tax increase in July. Congressman Patrick McHenry (NC) tours store 57 in Gastonia, NC with Store Manager Larry Taylor and team Contributions to the PAC are voluntary and can be declined without reprisal. Any employee cannot be favored nor disadvantaged by reason of amount or decision not to contribute. Contributions to LOWPAC are not tax deductible. LOWPAC must make a best effort to obtain and report the name, address, occupation and employer of each contributor who gives more than $200 a calendar year. 8