MIME-Version: 1.0 X-Document-Type: Workbook Content-Type: multipart/related; boundary="----=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce" This document is a Single File Web Page, also known as a Web Archive file. If you are seeing this message, your browser or editor doesn't support Web Archive files. Please download a browser that supports Web Archive, such as Microsoft Internet Explorer. ------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Workbook.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"

This page should be opened with Microsoft Excel XP or newer.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet01.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Document and Entity Information
6 Months Ended
Jul. 31, 2010
Aug. 27, 2010
Document Type 10-Q
Amendment Flag false
Document Period End Date 2010-07-31
Document Fiscal Year Focus 2011
Document Fiscal Period Focus Q2
Entity Registrant Name WAL MART STORES INC
Entity Central Index Key 0000104169
Current Fiscal Year End Date --01-31
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 3,636,547,192
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet02.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Condensed Consolidated Statements of Income (USD  $)
In Millions, except Per Share data
3 Months Ended 6 Months Ended
Jul. 31, 2010
Jul. 31, 2009
Jul. 31, 2010
Jul. 31, 2009
Revenues:
Net sales  $ 103,016  $ 100,168  $ 202,113  $ 193,639
Membership and other income 710 708 1,424 1,451
Revenues, total 103,726 100,876 203,537 195,090
Costs and expenses:
Cost of sales 77,523 75,056 [1] 152,223 145,451 [1]
Operating, selling, general and administrative expenses 20,013 19,891 39,387 38,537
Operating income 6,190 5,929 11,927 11,102
Interest:
Debt 477 447 932 895
Capital leases 65 68 132 138
Interest income (57) (42) (108) (93)
Interest, net 485 473 956 940
Income from continuing operations before income taxes 5,705 5,456 10,971 10,162
Provision for income taxes 1,958 1,870 3,780 3,455
Income from continuing operations 3,747 3,586 7,191 6,707
Loss from discontinued operations, net of tax   (7)   (15)
Consolidated net income 3,747 [2] 3,579 [2] 7,191 [3] 6,692 [3]
Less consolidated net income attributable to noncontrolling interest 151 107 294 224
Consolidated net income attributable to Walmart  $ 3,596  $ 3,472  $ 6,897  $ 6,468
Basic net income per common share:
Basic income per common share from continuing operations attributable to Walmart  $ 0.97  $ 0.89  $ 1.85  $ 1.66
Basic loss per common share from discontinued operations attributable to Walmart        
Basic net income per common share attributable to Walmart  $ 0.97  $ 0.89  $ 1.85  $ 1.66
Diluted net income per common share:
Diluted income per common share from continuing operations attributable to Walmart  $ 0.97  $ 0.89  $ 1.84  $ 1.66
Diluted loss per common share from discontinued operations attributable to Walmart        $ (0.01)
Diluted net income per common share attributable to Walmart  $ 0.97  $ 0.89  $ 1.84  $ 1.65
Weighted-average number of common shares:
Basic 3,696 3,891 3,730 3,905
Diluted 3,707 3,900 3,744 3,915
Dividends declared per common share      $ 1.21  $ 1.09
[1] The cost of sales adjustments includes  $(47) million and  $(3) million pertaining to the accounting change for the three and six months ended July 31, 2009, respectively. Certain reclassifications that had no effect on operating income or on the consolidated net income attributable to Walmart represent the remainder of the amounts included in the cost of sales adjustment columns above.
[2] Includes a  $5 million and a  $0 million gain for the three months ended July 31, 2010 and 2009, respectively, that is related to the redeemable noncontrolling interest.
[3] Includes a  $2 million and an  $8 million gain for the six months ended July 31, 2010 and 2009, respectively, that is related to the redeemable noncontrolling interest.
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet03.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Condensed Consolidated Balance Sheets(USD ( $))
In Millions
6 Months Ended 12 Months Ended
Jul. 31, 2009
Jan. 31, 2010
Jul. 31, 2010
Current assets:
Cash and cash equivalents  $ 7,997  $ 7,907  $ 10,195
Receivables, net 3,684 4,144 4,531
Inventories 33,365 32,713 34,793
Prepaid expenses and other 3,499 3,128 3,395
Current assets of discontinued operations 147 140 131
Total current assets 48,692 48,032 53,045
Property and equipment:
Property and equipment 133,070 137,848 142,123
Less accumulated depreciation (35,707) (38,304) (41,012)
Property and equipment, net 97,363 99,544 101,111
Property under capital leases:
Property under capital leases 5,583 5,669 5,720
Less accumulated amortization (2,759) (2,906) (3,017)
Property under capital leases, net 2,824 2,763 2,703
Goodwill 16,149 16,126 15,993
Other assets and deferred charges 3,581 3,942 4,092
Total assets 168,609 170,407 176,944
Current liabilities:
Short-term borrowings 1,122 523 4,639
Accounts payable 28,797 30,451 33,953
Dividends payable 2,073   2,292
Accrued liabilities 16,706 18,734 17,547
Accrued income taxes 1,142 1,347 1,257
Long-term debt due within one year 6,959 4,050 5,546
Obligations under capital leases due within one year 336 346 346
Current liabilities of discontinued operations 41 92 75
Total current liabilities 57,176 55,543 65,655
Long-term debt 33,579 33,231 35,629
Long-term obligations under capital leases 3,246 3,170 3,073
Deferred income taxes and other 5,773 5,508 5,368
Redeemable noncontrolling interest 326 307 323
Commitments and contingencies    
Equity:
Common stock and capital in excess of par value 4,173 4,181 3,999
Retained earnings 62,840 66,357 61,746
Accumulated other comprehensive loss (318) (70) (1,099)
Total Walmart shareholders' equity 66,695 70,468 64,646
Noncontrolling interest 1,814 2,180 2,250
Total equity 68,509 72,648 66,896
Total liabilities and equity  $ 168,609  $ 170,407  $ 176,944
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet04.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Condensed Consolidated Statements of Shareholders' Equity (USD  $)
In Millions
Common Stock
Capital in Excess of Par Value
Retained Earnings
Accumulated Other Comprehensive Loss
Total Walmart Shareholders' Equity
Noncontrolling Interest
Total
Beginning Balances (in shares) at Jan. 31, 2010 3,786
Beginning Balances at Jan. 31, 2010  $ 378  $ 3,803  $ 66,357  $ (70)  $ 70,468  $ 2,180  $ 72,648
Consolidated net income (excludes redeemable noncontrolling interest)     6,897   6,897 292 7,189
Other comprehensive income (loss)       (1,029) (1,029) 31 (998)
Cash dividends ( $1.21 per share)     (4,552)   (4,552)   (4,552)
Purchase of Company stock (in shares) (137)
Purchase of Company stock (14) (242) (6,920)   (7,176)   (7,176)
Other (in shares) 6 3
Other 74 (36)   38 (253) (215)
Ending Balances (in shares) at Jul. 31, 2010 3,655
Ending Balances at Jul. 31, 2010  $ 364  $ 3,635  $ 61,746  $ (1,099)  $ 64,646  $ 2,250  $ 66,896
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet05.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) (USD  $)
3 Months Ended 6 Months Ended
Jul. 31, 2010
Jul. 31, 2009
Jul. 31, 2010
Jul. 31, 2009
Cash dividends, per share      $ 1.21  $ 1.09
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet06.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Condensed Consolidated Statements of Comprehensive Income (USD  $)
In Millions
3 Months Ended 6 Months Ended
Jul. 31, 2010
Jul. 31, 2009
Jul. 31, 2010
Jul. 31, 2009
Consolidated net income  $ 3,747 [1]  $ 3,579 [1]  $ 7,191 [2]  $ 6,692 [2]
Other comprehensive income, net of tax
Currency translation (896) [3] 3,283 [3] (944) [4] 2,596 [4]
Net change in fair value of derivatives (108) (98) (25) (112)
Total comprehensive income 2,743 6,764 6,222 9,176
Less comprehensive income attributable to the noncontrolling interest
Net income (151) [1] (107) [1] (294) [2] (224) [2]
Currency translation 121 [3] (125) [3] (60) [4] (109) [4]
Amounts attributable to the noncontrolling interest (30) (232) (354) (333)
Comprehensive income attributable to Walmart  $ 2,713  $ 6,532  $ 5,868  $ 8,843
[1] Includes a  $5 million and a  $0 million gain for the three months ended July 31, 2010 and 2009, respectively, that is related to the redeemable noncontrolling interest.
[2] Includes a  $2 million and an  $8 million gain for the six months ended July 31, 2010 and 2009, respectively, that is related to the redeemable noncontrolling interest.
[3] Includes a  $3 million and a  $49 million gain for the three months ended July 31, 2010 and 2009, respectively, that is related to the redeemable noncontrolling interest.
[4] Includes a  $29 million and a  $74 million gain for the six months ended July 31, 2010 and 2009, respectively, that is related to the redeemable noncontrolling interest.
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet07.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD  $)
In Millions
3 Months Ended 6 Months Ended
Jul. 31, 2010
Jul. 31, 2009
Jul. 31, 2010
Jul. 31, 2009
Consolidated net income, redeemable noncontrolling interest  $ 5  $ 0  $ 2  $ 8
Foreign currency translation, redeemable noncontrolling interest  $ 3  $ 49  $ 29  $ 74
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet08.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Condensed Consolidated Statements of Cash Flows (USD  $)
In Millions
6 Months Ended
Jul. 31, 2010
Jul. 31, 2009
Cash flows from operating activities:
Consolidated net income  $ 7,191 [1]  $ 6,692 [1]
Loss from discontinued operations, net of tax   15
Income from continuing operations 7,191 6,707
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization 3,748 3,457
Other (162) (244)
Changes in certain assets and liabilities, net of effects of acquisitions:
Decrease (increase) in accounts receivable (424) 575
Decrease (increase) in inventories (2,086) 1,392
Increase (decrease) in accounts payable 3,090 (1,131)
Decrease in accrued liabilities (1,338) (861)
Net cash provided by operating activities 10,019 9,895
Cash flows from investing activities:
Payments for property and equipment (5,554) (5,744)
Other investing activities (27) (4)
Net cash used in investing activities (5,581) (5,748)
Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net 4,120 (654)
Proceeds from issuance of long-term debt 6,433 2,956
Payment of long-term debt (2,639) (95)
Dividends paid (2,260) (2,129)
Purchase of Company stock (7,112) (2,792)
Purchase of redeemable noncontrolling interest   (456)
Other financing activities (587) (264)
Net cash provided by (used in) financing activities (2,045) (3,434)
Effect of exchange rates on cash and cash equivalents (105) 9
Net increase (decrease) in cash and cash equivalents 2,288 722
Cash and cash equivalents at beginning of year 7,907 7,275
Cash and cash equivalents at end of period  $ 10,195  $ 7,997
[1] Includes a  $2 million and an  $8 million gain for the six months ended July 31, 2010 and 2009, respectively, that is related to the redeemable noncontrolling interest.
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet09.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation
6 Months Ended
Jul. 31, 2010
Basis of Presentation

Note 1. Basis of Presentation

The Condensed Consolidated Financial Statements of Wal-Mart Stores, Inc. and its subsidiaries ("Walmart," the "Company" or "we") included in this document are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal recurring nature. Interim results are not necessarily indicative of results for a full year. The Condensed Consolidated Financial Statements and notes thereto are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") and do not contain certain information included in the Company's Annual Report to Shareholders for the fiscal year ended January 31, 2010. Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report to Shareholders.

In connection with the Company's enterprise resource planning ("ERP") system implementation, we changed the level at which we apply the retail method of accounting for inventory, and reclassified certain revenue and expense items within our Condensed Consolidated Statements of Income for financial reporting purposes. The reclassifications did not impact consolidated operating income or consolidated net income attributable to Walmart. All prior period amounts have been reclassified to conform to the current period's presentation. See Note 4, Accounting Change.

Recent Accounting Pronouncements

A new accounting standard, effective for and adopted by the Company on February 1, 2010, changes the approach to determining the primary beneficiary of a variable interest entity ("VIE") and requires companies to assess more frequently whether they must consolidate VIEs. The adoption of this new standard did not have a material impact on our consolidated financial statements.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet10.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Net Income Per Common Share
6 Months Ended
Jul. 31, 2010
Net Income Per Common Share

Note 2. Net Income Per Common Share

Basic net income per common share attributable to Walmart is based on the weighted-average number of outstanding common shares. Diluted net income per common share attributable to Walmart is based on the weighted-average number of outstanding common shares adjusted for the dilutive effect of stock options and other share-based awards. The dilutive effect of outstanding stock options and other share-based awards was 11 million and 14 million shares for the three and six months ended July 31, 2010, respectively, and 9 million and 10 million shares for the three and six months ended July 31, 2009, respectively. The Company had approximately 19 million and 29 million stock options outstanding at July 31, 2010 and 2009, respectively, which were not included in the diluted net income per common share attributable to Walmart calculation because their effect would be antidilutive.

The following table provides a reconciliation of the numerators used to determine basic and diluted net income per common share:

 

     Three Months Ended
July 31,
    Six Months Ended
July 31,
 
(Amounts in millions)    2010     2009
As Adjusted
    2010     2009
As Adjusted
 

Income from continuing operations

    $ 3,747       $ 3,586       $ 7,191       $ 6,707   

Less consolidated net income attributable to noncontrolling interest

     (151     (107     (294     (224
                                

Income from continuing operations attributable to Walmart

     3,596        3,479        6,897        6,483   

Loss from discontinued operations, net of tax

     —          (7     —          (15
                                

Consolidated net income attributable to Walmart

    $ 3,596       $ 3,472       $ 6,897       $ 6,468   
                                
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet11.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Inventories
6 Months Ended
Jul. 31, 2010
Inventories

Note 3. Inventories

The Company values inventories at the lower of cost or market as determined primarily by the retail method of accounting, using the last-in, first-out ("LIFO") method for substantially all of the Walmart U.S. segment's merchandise inventories. The retail method of accounting results in inventory being valued at the lower of cost or market since permanent markdowns are currently taken as a reduction of the retail value of inventory. The Sam's Club segment's merchandise is valued based on the weighted-average cost using the LIFO method. Inventories for the Walmart International operations are primarily valued by the retail method of accounting and are stated using the first-in, first-out ("FIFO") method. At July 31, 2010 and 2009, our inventories valued at LIFO approximate those inventories as if they were valued at FIFO.

As discussed in Note 4, effective May 1, 2010 the Company changed the level at which it applies the retail method for valuing its inventory for its operations in the United States, Canada and Puerto Rico. The retrospective application of this accounting change impacted both segment and consolidated operating income, as well as consolidated net income for all comparable periods presented.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet12.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accounting Change
6 Months Ended
Jul. 31, 2010
Accounting Change

Note 4. Accounting Change

Effective May 1, 2010, the Company implemented a new ERP system for its operations in the United States, Canada and Puerto Rico. Concurrent with this implementation and the increased system capabilities, the Company changed the level at which it applies the retail method of accounting for inventory in these operations from 13 divisions to 49 departments. The Company believes the change is preferable because applying the retail method of accounting for inventory at the departmental level better segregates merchandise with similar cost-to-retail ratios and turnover, as well as provides a more accurate cost of goods sold and ending inventory value at the lower of cost or market for each reporting period. The retrospective application of this accounting change impacted both segment and consolidated operating income, as well as consolidated net income for all comparable periods presented.

The retrospective application of the accounting change impacted the following financial statement line items:

 

(Amounts in millions except per share data)    Three Months Ended July 31, 2009    Six Months Ended July 31, 2009
     As Reported    Adjustments     As Adjusted    As Reported    Adjustments     As Adjusted

Condensed Consolidated Statements of Income:

               

Cost of sales (1)

    $ 75,153     $ (97    $ 75,056     $ 145,541     $ (90    $ 145,451

Operating income

     5,882      47        5,929      11,099      3        11,102

Provision for income taxes

     1,853      17        1,870      3,456      (1     3,455

Income from continuing operations

     3,556      30        3,586      6,703      4        6,707

Consolidated net income attributable to Walmart

     3,442      30        3,472      6,464      4        6,468

Basic net income per share attributable to Walmart

     0.88      0.01        0.89      1.66      —          1.66

Diluted net income per share attributable to Walmart

     0.88      0.01        0.89      1.65      —          1.65

 

(1)

 

     July 31, 2009    January 31, 2010
(Amounts in millions)    As Reported    Adjustments     As Adjusted    As Reported    Adjustments     As Adjusted

Condensed Consolidated Balance Sheets:

               

Inventories

    $ 33,861     $ (496    $ 33,365     $ 33,160     $ (447    $ 32,713

Prepaid expenses and other

     3,336      163        3,499      2,980      148        3,128

Accrued income taxes

     1,162      (20     1,142      1,365      (18     1,347

Retained earnings

     63,153      (313     62,840      66,638      (281     66,357
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet13.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Debt
6 Months Ended
Jul. 31, 2010
Debt

Note 5. Debt

On April 1, 2010, the Company issued  $750 million principal amount of its 2.875% Notes due 2015 and  $1.250 billion principal amount of its 5.625% Notes due 2040. The aggregate net proceeds from these note issuances were approximately  $2.0 billion. The notes of each series require semi-annual interest payments on April 1 and October 1 of each year, commencing on October 1, 2010. The 2.875% Notes due 2015 will mature on April 1, 2015, and the 5.625% Notes due 2040 will mature on April 1, 2040. The entire principal amount of the notes of each series is payable at maturity. The notes of each series are senior, unsecured obligations of the Company.

On July 8, 2010, the Company issued  $750 million principal amount of its 2.250% Notes due 2015,  $1.500 billion principal amount of its 3.625% Notes due 2020, and  $750 million principal amount of its 4.875% Notes due 2040. The aggregate net proceeds from these note issuances were approximately  $3.0 billion. The notes of each series require semi-annual interest payments on January 8 and July 8 of each year, commencing on January 8, 2011. The 2.250% Notes due 2015 will mature on July 8, 2015; the 3.625% Notes due 2020 will mature on July 8, 2020; and the 4.875% Notes due 2040 will mature on July 8, 2040. The entire principal amount of the notes of each series is payable at maturity. The notes of each series are senior, unsecured obligations of the Company.

On July 28, 2010, the Company issued and sold ¥60 billion of its Japanese Yen Bonds - Fourth Series (2010) (the "Fixed Rate Fourth Series Bonds"), ¥10 billion of its Japanese Yen Bonds – Fifth Series (2010) (the "Fixed Rate Fifth Series Bonds") and ¥30 billion of its Japanese Yen Floating Rate Bonds - Third Series (2010) (the "Floating Rate Bonds") at an issue price, in the case of each issue of bonds, equal to the face amount of the bonds and used the proceeds to repay a portion of its outstanding borrowing under its Yen-denominated credit facility. The aggregate net proceeds of the bonds were approximately  $1.0 billion. The Fixed Rate Fourth Series Bonds bear interest at a rate of 0.94% per annum, and the Fixed Rate Fifth Series Bonds bear interest at a rate of 1.60%. The Floating Rate Bonds bear interest at a floating rate of interest equal to an applicable three-month Yen LIBOR for each interest period plus 0.45%. Interest started accruing on the bonds on the Fixed Rate Fourth Series Bonds and the Fixed Rate Fifth Series Bonds on July 29. 2010 and on the Floating Rate Bonds on July 28, 2010. The Company will pay interest on the Fixed Rate Fourth Series Bonds and the Fixed Rate Fifth Series Bonds on January 28 and July 28 of each year, commencing on January 28, 2011. The Company will pay interest on the Floating Rate Bonds on January 28, April 28, July 28, and October 28 of each year, commencing on October 28, 2010. The Fixed Rate Fourth Series Bonds and the Floating Rate Bonds will mature on July 28, 2015, and the Fixed Rate Fifth Series Bonds will mature on July 28, 2020. The entire principal amount of the bonds of each series is payable at maturity. The bonds of each series are senior, unsecured obligations of Walmart.

In June 2010, the Company renewed an existing 364-day revolving credit facility which is used to complement its commercial paper program (the "364-Day Facility"). The size of the 364-Day Facility was increased from  $7.0 billion to  $9.0 billion. In conjunction with the 364-Day Facility, the Company also renewed an existing letter of credit facility used to support various potential and actual obligations. The size of the new letter of credit facility was reduced from  $2.35 billion to  $2.23 billion to reflect program improvements. In both facilities, undrawn and drawn fees were reduced from the prior year. The 364-Day Facility remained undrawn as of July 31, 2010.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet14.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements
6 Months Ended
Jul. 31, 2010
Fair Value Measurements

Note 6. Fair Value Measurements

The Company records and discloses certain financial and non-financial assets and liabilities at their fair value. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor.

Assets and liabilities recorded at fair value are measured using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

 

   

Level 1, defined as observable inputs such as quoted prices in active markets;

 

   

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

 

   

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop our own assumptions.

The disclosure of fair value of certain financial assets and liabilities that are recorded at cost are as follows:

Cash and cash equivalents: The carrying value approximates fair value due to the short maturity of these instruments.

Long-term debt: The fair value is based on the Company's current incremental borrowing rate for similar types of borrowing arrangements or, where applicable, quoted market prices. The carrying value and fair value of our debt as of July 31, 2010 and January 31, 2010 are as follows:

 

     July 31, 2010    January 31, 2010
(Amounts in millions)    Carrying Value    Fair Value    Carrying Value    Fair Value

Long-term debt

    $ 41,175     $ 44,407      $ 37,281     $ 39,055

Additionally, as of July 31, 2010 and January 31, 2010, the Company held certain derivative asset and liability positions that are required to be measured at fair value on a recurring basis. The majority of the Company's derivative instruments relate to interest rate swaps. The fair values of these interest rate swaps have been measured in accordance with Level 2 inputs of the fair value hierarchy. As of July 31, 2010 and January 31, 2010, the notional amounts and fair values of these interest rate swaps are as follows (asset/(liability)):

 

     July 31, 2010     January 31, 2010  
(Amounts in millions)    Notional
Amount
   Fair
Value
    Notional
Amount
   Fair
Value
 

Receive fixed-rate, pay floating-rate interest rate swaps designated as fair value hedges

    $ 4,445     $ 316       $ 4,445     $ 260   

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as net investment hedges

     1,250      312        1,250      189   

Receive floating-rate, pay fixed-rate interest rate swaps designated as cash flow hedges

     638      (20     638      (20

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges

     2,902      74        2,902      286   
                              

Total

    $ 9,235     $ 682       $ 9,235     $ 715   
                              

The fair values above are determined based on the income approach and the related inputs of the relevant interest rate and foreign currency forward curves. The estimated amounts the Company would receive or pay upon a termination of the agreements relating to such instruments approximate the fair values as of the reporting dates.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet15.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative Financial Instruments
6 Months Ended
Jul. 31, 2010
Derivative Financial Instruments

Note 7. Derivative Financial Instruments

The Company uses derivative financial instruments for hedging and non-trading purposes to manage its exposure to changes in interest and currency exchange rates, as well as to maintain an appropriate mix of fixed- and floating-rate debt. Use of derivative financial instruments in hedging programs subjects the Company to certain risks, such as market and credit risks. Market risk represents the possibility that the value of the derivative instrument will change. In a hedging relationship, the change in the value of the derivative is offset to a great extent by the change in the value of the underlying hedged item. Credit risk related to derivatives represents the possibility that the counterparty will not fulfill the terms of the contract. The notional, or contractual, amount of the Company's derivative financial instruments is used to measure interest to be paid or received and does not represent the Company's exposure due to credit risk. Credit risk is monitored through established approval procedures, including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral (generally cash) from the counterparty if the derivative liability position exceeds certain thresholds.

The Company's transactions are with counterparties rated "A+" or better by nationally recognized credit rating agencies. In connection with various derivative agreements with counterparties, the Company held  $327 million in cash collateral from these counterparties at July 31, 2010. It is our policy to record cash collateral exclusive of any derivative asset, and any collateral holdings are reflected in our accrued liabilities as amounts due to the counterparties. Furthermore, as part of the master netting arrangements with these counterparties, the Company is also required to post collateral if the derivative liability position exceeds  $150 million. As of July 31, 2010, the Company had no outstanding collateral postings. In the event the Company posts cash collateral, the Company would record the posting as a receivable exclusive of any derivative liability.

When the Company uses derivative financial instruments for purposes of hedging its exposure to interest and currency exchange rate risks, the contract terms of a hedge instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts that are effective at meeting the risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument is a hedge, depending on the nature of the hedge, changes in the fair value of the instrument will either be offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or be recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. The ineffective portion of an instrument's change in fair value will be immediately recognized in the Company's earnings during the period. Instruments that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, are valued at fair value with unrealized gains or losses reported in earnings during the period of the change.

Fair Value Instruments

The Company is party to receive fixed-rate, pay floating-rate interest rate swaps to hedge the fair value of fixed-rate debt. Under certain swap agreements, the Company pays floating-rate interest and receives fixed-rate interest payments periodically over the life of the instruments. The notional amounts are used to measure interest to be paid or received and do not represent the exposure due to credit loss. The Company's interest rate swaps that receive fixed-interest rate payments and pay floating-interest rate payments are designated as fair value hedges. As the specific terms and notional amounts of the derivative instruments match those of the instruments being hedged, the derivative instruments were assumed to be perfectly effective hedges, and all changes in fair value of the hedges were recorded on the balance sheet with no net impact on the income statement. These fair value instruments will mature on dates ranging from February 2011 to May 2014.

 

Net Investment Instruments

The Company is party to cross-currency interest rate swaps that hedge its net investment in the United Kingdom. The agreements are contracts to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. All changes in the fair value of these instruments are recorded in accumulated other comprehensive loss, offsetting the currency translation adjustment that is also recorded in accumulated other comprehensive loss. These instruments will mature on dates ranging from October 2023 to February 2030.

The Company has £3.0 billion of outstanding debt that is designated as a hedge of the Company's net investment in the United Kingdom as of July 31, 2010 and January 31, 2010. The Company also has outstanding ¥437 billion of debt that is designated as a hedge of the Company's net investment in Japan at July 31, 2010 and January 31, 2010, respectively. Any translation of non-U.S. denominated debt is recorded in accumulated other comprehensive loss, offsetting the currency translation adjustment that is also recorded in accumulated other comprehensive loss. These instruments will mature on dates ranging from January 2011 to January 2039.

Cash Flow Instruments

The Company is party to receive floating-rate, pay fixed-rate interest rate swaps to hedge the interest rate risk of certain non-U.S. denominated debt. The swaps are designated as cash flow hedges of interest expense risk. Changes in the non-U.S. benchmark interest rate result in reclassification of amounts from accumulated other comprehensive loss to earnings to offset the floating-rate interest expense. These cash flow instruments will mature on dates ranging from August 2013 to July 2015.

The Company is also party to receive fixed-rate, pay fixed-rate cross-currency interest rate swaps to hedge the currency exposure associated with the forecasted payments of principal and interest of non-U.S. denominated debt. The swaps are designated as cash flow hedges of the currency risk related to payments on the non-U.S. denominated debt. Changes in the currency exchange rate result in reclassification of amounts from accumulated other comprehensive loss to earnings to offset the re-measurement gain or loss on the non-U.S. denominated debt. These cash flow instruments will mature on dates ranging from September 2029 to March 2034. Any ineffectiveness related to these instruments has been and is expected to be immaterial.

Financial Statement Presentation

Hedging instruments with an unrealized gain are recorded on the Condensed Consolidated Balance Sheets in other assets and deferred charges, based on maturity date. Those instruments with an unrealized loss are recorded in accrued liabilities or deferred income taxes and other, based on maturity date.

As of July 31, 2010 and January 31, 2010, our financial instruments were classified as follows in the Condensed Consolidated Balance Sheets:

 

     July 31, 2010    January 31, 2010
(Amounts in millions)    Fair Value
Instruments
   Net
Investment

Hedge
   Cash Flow
Instruments
   Fair Value
Instruments
   Net
Investment
Hedge
   Cash Flow
Instruments

Balance Sheet Classification:

                 

Other assets and deferred charges

    $ 316     $ 312     $ 74     $ 260     $ 189     $ 286
                                         

Asset Subtotals

    $ 316     $ 312     $ 74     $ 260     $ 189     $ 286
                                         

Long-term debt

    $ 316     $ —       $ —       $ 260     $ —       $ —  

Deferred income taxes and other

     —        —        20      —        —        20
                                         

Liability Subtotals

    $ 316     $ —       $ 20     $ 260     $ —       $ 20
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet16.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Segments
6 Months Ended
Jul. 31, 2010
Segments

Note 8. Segments

The Company is engaged in the operations of retail stores located in all 50 states of the United States and Puerto Rico, our wholly-owned subsidiaries in Argentina, Brazil, Canada, Japan and the United Kingdom, our majority-owned subsidiaries in Chile and Mexico and our joint ventures in China and India and our other controlled subsidiaries in China. Our operations are conducted in three operating segments, the Walmart U.S. segment, the Walmart International segment and the Sam's Club segment. The Company defines our segments as those business units whose operating results our chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. We sell similar individual products and services in each of our segments. It is impractical to segregate and identify revenue and profits for each of these individual products and services.

As part of an operational realignment in February 2010, our Puerto Rico operations shifted from the Walmart International segment to the Walmart U.S. and Sam's Club segments. The Walmart U.S. segment now includes the Company's mass merchant concept in the United States and Puerto Rico operating primarily under the "Walmart" or "Wal-Mart" brands, as well as walmart.com. The Walmart International segment now consists of the Company's operations outside of the United States and Puerto Rico. The Sam's Club segment now includes the warehouse membership clubs in the United States and Puerto Rico, as well as samsclub.com. All prior period amounts have been reclassified to conform to the current period's presentation. The amounts under the caption "Other" in the Operating Income table below represent unallocated corporate overhead items.

The Company measures the results of its segments using, among other measures, each segment's operating income that includes certain corporate overhead allocations. From time to time, we revise the measurement of each segment's operating income, including any corporate overhead allocations, as dictated by the information regularly reviewed by our CODM. In the first quarter of fiscal 2011, certain information systems expenses previously included in unallocated corporate overhead have been allocated to the segment that is directly benefitting from these costs. The segment operating income is reclassified for all prior periods presented to conform to the current period's presentation.

Net sales by operating segment were as follows:

 

     Three Months Ended
July 31,
   Six Months Ended
July 31,
(Amounts in millions)    2010    2009    2010    2009

Net Sales:

           

Walmart U.S.

    $ 64,654     $ 64,645     $ 126,978     $ 126,272

Walmart International

     25,901      23,332      50,931      43,953

Sam's Club

     12,461      12,191      24,204      23,414
                           

Net sales

    $ 103,016     $ 100,168     $ 202,113     $ 193,639
                           

Operating income by segment was as follows:

 

     Three Months Ended
July 31,
    Six Months Ended
July 31,
 
(Amounts in millions)    2010     2009
As Adjusted
    2010     2009
As Adjusted
 

Operating Income:

        

Walmart U.S.

    $ 4,879       $ 4,890       $ 9,494       $ 9,252   

Walmart International

     1,299        1,112        2,382        1,955   

Sam's Club

     428        418        857        810   

Other

     (416     (491     (806     (915
                                

Operating income

   6,190      5,929      11,927      11,102   

Interest expense, net

     (485     (473     (956     (940
                                

Income from continuing operations before income taxes

    $ 5,705       $ 5,456       $ 10,971       $ 10,162   
                                

The following table sets forth the change in goodwill, by operating segment, for the six months ended July 31, 2010:

 

(Amounts in millions)    Walmart
International
    Walmart
U.S.
   Sam's
Club
   Total  

Balances — February 1, 2010

    $ 15,606       $ 207     $ 313     $ 16,126   

Currency translation

     (216     —        —        (216

Other

     83        —        —        83   
                              

Balances — July 31, 2010

    $ 15,473       $ 207     $ 313     $ 15,993   
                              
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet17.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accumulated Other Comprehensive Loss
6 Months Ended
Jul. 31, 2010
Accumulated Other Comprehensive Loss

Note 9. Accumulated Other Comprehensive Loss

The following table sets forth the changes in the composition of accumulated other comprehensive loss for the six months ended July 31, 2010:

 

(Amounts in millions)    Currency
Translation
    Derivative
Instruments
    Minimum
Pension Liability
    Total  

Balances — February 1, 2010

    $ 348       $ 77       $ (495    $ (70

Currency translation adjustment

     (1,004     —          —          (1,004

Net change in fair value of derivatives

     —          (25     —          (25
                                

Balances — July 31, 2010

    $ (656    $ 52       $ (495    $ (1,099
                                

The currency translation adjustment includes a net translation loss of  $593 million at July 31, 2010 related to the net investment hedges of our operations in the U.K. and Japan. During the six months ended July 31, 2010, we reclassified  $111 million from accumulated other comprehensive loss to earnings to offset currency translation gains on the re-measurement of non-U.S. denominated debt.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet18.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Common Stock Dividends
6 Months Ended
Jul. 31, 2010
Common Stock Dividends

Note 10. Common Stock Dividends

On March 4, 2010, the Company's Board of Directors approved an increase in the annual dividend for fiscal 2011 to  $1.21 per share, an increase of 11% over the dividends paid in fiscal 2010. The annual dividend will be paid in four quarterly installments on April 5, 2010, June 1, 2010, September 7, 2010 and January 3, 2011 to holders of record on March 12, May 14, August 13 and December 10, 2010, respectively. The dividend installments payable on April 5, 2010 and June 1, 2010 were paid as scheduled.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet19.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Legal Proceedings
6 Months Ended
Jul. 31, 2010
Legal Proceedings

Note 11. Legal Proceedings

The Company is involved in a number of legal proceedings. The Company has made accruals with respect to these matters, where appropriate, which are reflected in the Company's consolidated financial statements. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. However, where a liability is reasonably possible and material, such matters have been disclosed. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company's shareholders. The matters, or groups of related matters, discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in liability material to the Company's financial condition or results of operations.

Wage-and-Hour Class Actions: The Company is a defendant in various cases containing class-action allegations in which the plaintiffs are current and former hourly associates who allege that the Company committed wage-and-hour violations by failing to provide rest breaks, meal periods, or other benefits, or otherwise by failing to pay them correctly. The complaints generally seek unspecified monetary damages, injunctive relief, or both. The Company cannot reasonably estimate the possible loss or range of loss that may arise from these lawsuits, except where the lawsuit has been settled or otherwise as noted below.

In one of the wage-and-hour lawsuits, Braun/Hummel v. Wal-Mart Stores, Inc., a trial was commenced in September 2006, in Philadelphia, Pennsylvania. The plaintiffs allege that the Company failed to pay class members for all hours worked and prevented class members from taking their full meal and rest breaks. On October 13, 2006, the jury awarded back-pay damages to the plaintiffs of approximately  $78 million on their claims for off-the-clock work and missed rest breaks. The jury found in favor of the Company on the plaintiffs' meal-period claims. On November 14, 2007, the trial judge entered a final judgment in the approximate amount of  $188 million, which included the jury's back-pay award plus statutory penalties, prejudgment interest and attorneys' fees. The Company believes it has substantial factual and legal defenses to the claims at issue, and on December 7, 2007, the Company filed its Notice of Appeal.

Exempt Status Cases: The Company is a defendant in several cases in which the plaintiffs seek class or collective certification of various groups of salaried managers, and challenge their exempt status under state and federal laws. In one of those cases (Sepulveda v. Wal-Mart Stores, Inc.), class certification was denied by the trial court on May 5, 2006. On April 25, 2008, a three-judge panel of the United States Court of Appeals for the Ninth Circuit affirmed the trial court's ruling in part and reversed it in part, and remanded the case for further proceedings. On May 16, 2008, the Company filed a petition seeking review of that ruling by a larger panel of the court. On October 10, 2008, the court entered an Order staying all proceedings in the Sepulveda appeal pending the final disposition of the appeal in Dukes v. Wal-Mart Stores, Inc., discussed below. Class certification has not been addressed in the other cases. The Company cannot reasonably estimate the possible loss or range of loss that may arise from these lawsuits.

Gender Discrimination Cases: The Company is a defendant in Dukes v. Wal-Mart Stores, Inc., a class-action lawsuit commenced in June 2001 in the United States District Court for the Northern District of California. The complaint alleges that the Company has engaged in a pattern and practice of discriminating against women in promotions, pay, training and job assignments. The complaint seeks, among other things, injunctive relief, front pay, back pay, punitive damages and attorneys' fees. On June 21, 2004, the district court issued an order granting in part and denying in part the plaintiffs' motion for class certification. The class, which was certified by the district court for purposes of liability, injunctive and declaratory relief, punitive damages and lost pay, subject to certain exceptions, includes all women employed at any Wal-Mart domestic retail store at any time since December 26, 1998, who have been or may be subjected to the pay and management track promotions policies and practices challenged by the plaintiffs.

On August 31, 2004, the United States Court of Appeals for the Ninth Circuit granted the Company's petition for discretionary review of the ruling. On February 6, 2007, a divided three-judge panel of the court of appeals issued a decision affirming the district court's certification order. On February 20, 2007, the Company filed a petition asking that the decision be reconsidered by a larger panel of the court. On December 11, 2007, the three-judge panel withdrew its opinion of February 6, 2007, and issued a revised opinion. As a result, the Company's Petition for Rehearing En Banc was denied as moot. The Company filed a new Petition for Rehearing En Banc on January 8, 2008. On February 13, 2009, the court of appeals issued an Order granting the Petition. On April 26, 2010, the Ninth Circuit issued a divided (6-5) opinion affirming certain portions of the district court's ruling and reversing other portions. On August 25, 2010, the Company filed a petition for a writ of certiorari to the United States Supreme Court seeking review of the Ninth Circuit's decision. On May 14, 2010, after the parties moved jointly for a stay pending final resolution of the Company's petition for a writ of certiorari, the district court stayed further proceedings until the earlier of (1) the Supreme Court's resolution of the Company's petition or (2) September 30, 2010. 

If the Company is not successful in its appeal of class certification, or an appellate court issues a ruling that allows for the certification of a class or classes with a different size or scope, and if there is a subsequent adverse verdict on the merits from which there is no successful appeal, or in the event of a negotiated settlement of the litigation, the resulting liability could be material to the Company's financial condition or results of operations. The plaintiffs also seek punitive damages which, if awarded, could result in the payment of additional amounts material to the Company's financial condition or results of operations. However, because of the uncertainty of the outcome of the appeal, because of the uncertainty of the balance of the proceedings contemplated by the district court, and because the Company's liability, if any, arising from the litigation, including the size of any damages award if plaintiffs are successful in the litigation or any negotiated settlement, could vary widely, the Company cannot reasonably estimate the possible loss or range of loss that may arise from the litigation.

Hazardous Materials Investigations: On November 8, 2005, the Company received a grand jury subpoena from the United States Attorney's Office for the Central District of California, seeking documents and information relating to the Company's receipt, transportation, handling, identification, recycling, treatment, storage and disposal of certain merchandise that constitutes hazardous materials or hazardous waste. The Company has been informed by the U.S. Attorney's Office for the Central District of California that it is a target of a criminal investigation into potential violations of the Resource Conservation and Recovery Act ("RCRA"), the Clean Water Act and the Hazardous Materials Transportation Statute. This U.S. Attorney's Office contends, among other things, that the use of Company trucks to transport certain returned merchandise from the Company's stores to its return centers is prohibited by RCRA because those materials may be considered hazardous waste. The government alleges that, to comply with RCRA, the Company must ship from the store certain materials as "hazardous waste" directly to a certified disposal facility using a certified hazardous waste carrier. The U.S. Attorney's Office in the Northern District of California subsequently joined in this investigation. The Company contends that the practice of transporting returned merchandise to its return centers for subsequent disposition, including disposal by certified facilities, is compliant with applicable laws and regulations. While management cannot predict the ultimate outcome of this matter, management does not believe the outcome will have a material effect on the Company's financial condition or results of operations.

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet20.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Acquisitions
6 Months Ended
Jul. 31, 2010
Acquisitions

Note 12. Acquisitions

On May 27, 2010, we announced an agreement with Dansk Supermarked A/S, whereby ASDA, our subsidiary in the United Kingdom, will purchase Netto Foodstores Limited ("Netto"). Netto operates 193 stores averaging 8,000 square feet. The transaction is subject to regulatory approval and is expected to close in fiscal 2011. The estimated purchase price is approximately £778 million ( $1.2 billion).

------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet21.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Net Income Per Common Share (Tables)
6 Months Ended
Jul. 31, 2010
Summary of Net Income, Table
     Three Months Ended
July 31,
    Six Months Ended
July 31,
 
(Amounts in millions)    2010     2009
As Adjusted
    2010     2009
As Adjusted
 

Income from continuing operations

    $ 3,747       $ 3,586       $ 7,191       $ 6,707   

Less consolidated net income attributable to noncontrolling interest

     (151     (107     (294     (224
                                

Income from continuing operations attributable to Walmart

     3,596        3,479        6,897        6,483   

Loss from discontinued operations, net of tax

     —          (7     —          (15
                                

Consolidated net income attributable to Walmart

    $ 3,596       $ 3,472       $ 6,897       $ 6,468   
                                
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet22.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accounting Change (Tables)
6 Months Ended
Jul. 31, 2010
Retroactive application of the accounting change in Income Statement
(Amounts in millions except per share data)    Three Months Ended July 31, 2009    Six Months Ended July 31, 2009
     As Reported    Adjustments     As Adjusted    As Reported    Adjustments     As Adjusted

Condensed Consolidated Statements of Income:

               

Cost of sales (1)

    $ 75,153     $ (97    $ 75,056     $ 145,541     $ (90    $ 145,451

Operating income

     5,882      47        5,929      11,099      3        11,102

Provision for income taxes

     1,853      17        1,870      3,456      (1     3,455

Income from continuing operations

     3,556      30        3,586      6,703      4        6,707

Consolidated net income attributable to Walmart

     3,442      30        3,472      6,464      4        6,468

Basic net income per share attributable to Walmart

     0.88      0.01        0.89      1.66      —          1.66

Diluted net income per share attributable to Walmart

     0.88      0.01        0.89      1.65      —          1.65

 

(1)

The cost of sales adjustments includes  $(47) million and  $(3) million pertaining to the accounting change for the three and six months ended July 31, 2009, respectively. Certain reclassifications that had no effect on operating income or on the consolidated net income attributable to Walmart represent the remainder of the amounts included in the cost of sales adjustment columns above.

Retroactive application of the accounting change in Balance Sheet
     July 31, 2009    January 31, 2010
(Amounts in millions)    As Reported    Adjustments     As Adjusted    As Reported    Adjustments     As Adjusted

Condensed Consolidated Balance Sheets:

               

Inventories

    $ 33,861     $ (496    $ 33,365     $ 33,160     $ (447    $ 32,713

Prepaid expenses and other

     3,336      163        3,499      2,980      148        3,128

Accrued income taxes

     1,162      (20     1,142      1,365      (18     1,347

Retained earnings

     63,153      (313     62,840      66,638      (281     66,357
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet23.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements (Tables)
6 Months Ended
Jul. 31, 2010
The carrying value and fair value of our debt
     July 31, 2010    January 31, 2010
(Amounts in millions)    Carrying Value    Fair Value    Carrying Value    Fair Value

Long-term debt

    $ 41,175     $ 44,407      $ 37,281     $ 39,055
The notional amounts and fair values of these interest rate swaps are as follows (asset/(liability)):
     July 31, 2010     January 31, 2010  
(Amounts in millions)    Notional
Amount
   Fair
Value
    Notional
Amount
   Fair
Value
 

Receive fixed-rate, pay floating-rate interest rate swaps designated as fair value hedges

    $ 4,445     $ 316       $ 4,445     $ 260   

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as net investment hedges

     1,250      312        1,250      189   

Receive floating-rate, pay fixed-rate interest rate swaps designated as cash flow hedges

     638      (20     638      (20

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges

     2,902      74        2,902      286   
                              

Total

    $ 9,235     $ 682       $ 9,235     $ 715   
                              
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet24.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative Financial Instruments (Tables)
6 Months Ended
Jul. 31, 2010
Balance Sheet classification of financial instruments
     July 31, 2010    January 31, 2010
(Amounts in millions)    Fair Value
Instruments
   Net
Investment

Hedge
   Cash Flow
Instruments
   Fair Value
Instruments
   Net
Investment
Hedge
   Cash Flow
Instruments

Balance Sheet Classification:

                 

Other assets and deferred charges

    $ 316     $ 312     $ 74     $ 260     $ 189     $ 286
                                         

Asset Subtotals

    $ 316     $ 312     $ 74     $ 260     $ 189     $ 286
                                         

Long-term debt

    $ 316     $ —       $ —       $ 260     $ —       $ —  

Deferred income taxes and other

     —        —        20      —        —        20
                                         

Liability Subtotals

    $ 316     $ —       $ 20     $ 260     $ —       $ 20
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet25.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Segments (Tables)
6 Months Ended
Jul. 31, 2010
Net sales by operating segment
     Three Months Ended
July 31,
   Six Months Ended
July 31,
(Amounts in millions)    2010    2009    2010    2009

Net Sales:

           

Walmart U.S.

    $ 64,654     $ 64,645     $ 126,978     $ 126,272

Walmart International

     25,901      23,332      50,931      43,953

Sam's Club

     12,461      12,191      24,204      23,414
                           

Net sales

    $ 103,016     $ 100,168     $ 202,113     $ 193,639
                           
Operating income by segment
     Three Months Ended
July 31,
    Six Months Ended
July 31,
 
(Amounts in millions)    2010     2009
As Adjusted
    2010     2009
As Adjusted
 

Operating Income:

        

Walmart U.S.

    $ 4,879       $ 4,890       $ 9,494       $ 9,252   

Walmart International

     1,299        1,112        2,382        1,955   

Sam's Club

     428        418        857        810   

Other

     (416     (491     (806     (915
                                

Operating income

   6,190      5,929      11,927      11,102   

Interest expense, net

     (485     (473     (956     (940
                                

Income from continuing operations before income taxes

    $ 5,705       $ 5,456       $ 10,971       $ 10,162   
                                
Change in goodwill, by operating segment
(Amounts in millions)    Walmart
International
    Walmart
U.S.
   Sam's
Club
   Total  

Balances — February 1, 2010

    $ 15,606       $ 207     $ 313     $ 16,126   

Currency translation

     (216     —        —        (216

Other

     83        —        —        83   
                              

Balances — July 31, 2010

    $ 15,473       $ 207     $ 313     $ 15,993   
                              
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet26.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accumulated Other Comprehensive Loss (Tables)
6 Months Ended
Jul. 31, 2010
Changes in the composition of accumulated other comprehensive loss
(Amounts in millions)    Currency
Translation
    Derivative
Instruments
    Minimum
Pension Liability
    Total  

Balances — February 1, 2010

    $ 348       $ 77       $ (495    $ (70

Currency translation adjustment

     (1,004     —          —          (1,004

Net change in fair value of derivatives

     —          (25     —          (25
                                

Balances — July 31, 2010

    $ (656    $ 52       $ (495    $ (1,099
                                
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet27.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Net Income Per Common Share (Details) (USD  $)
In Millions
3 Months Ended 6 Months Ended
Jul. 31, 2010
Jul. 31, 2009
Jul. 31, 2010
Jul. 31, 2009
Dilutive effect of outstanding stock options and other share-based awards 11 9 14 10
Ant-dilutive number of shares from stock options and share-based awards 19 29
Income from continuing operations  $ 3,747  $ 3,586  $ 7,191  $ 6,707
Less comprehensive income attributable to the noncontrolling interest (151) (107) (294) (224)
Income from continuing operations attributable to Walmart 3,596 3,479 6,897 6,483
Loss from discontinued operations, net of tax   (7)   (15)
Consolidated net income attributable to Walmart  $ 3,596  $ 3,472  $ 6,897  $ 6,468
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet28.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accounting Change (Details) (USD  $)
In Millions, except Per Share data
3 Months Ended 6 Months Ended
Jul. 31, 2009
Jul. 31, 2009
Cost of sales  $ 75,056 [1]  $ 145,451 [1]
Operating income 5,929 11,102
Provision for income taxes 1,870 3,455
Income from continuing operations 3,586 6,707
Consolidated net income attributable to Walmart 3,472 6,468
Basic net income per common share attributable to Walmart  $ 0.89  $ 1.66
Diluted net income per share attributable to Walmart  $ 0.89  $ 1.65
Cost of sales adjustment (47) (3)
Inventories 33,365 33,365
Prepaid expenses and other 3,499 3,499
Accrued income taxes 1,142 1,142
Retained earnings  $ 62,840  $ 62,840
[1] The cost of sales adjustments includes  $(47) million and  $(3) million pertaining to the accounting change for the three and six months ended July 31, 2009, respectively. Certain reclassifications that had no effect on operating income or on the consolidated net income attributable to Walmart represent the remainder of the amounts included in the cost of sales adjustment columns above.
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet29.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Debt (Details)
0 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended
Jul. 08, 2010
USD ( $)
Jun. 28, 2010
USD ( $)
Apr. 01, 2010
USD ( $)
Jul. 31, 2010
Apr. 01, 2010
Long-Term 2.875% Notes due 2015 [Member]
USD ( $)
Apr. 01, 2010
Long-Term 5.625% Notes due 2040 [Member]
USD ( $)
Jul. 31, 2010
Long-Term 2.250% Notes due 2015 [Member]
Jul. 08, 2010
Long-Term 2.250% Notes due 2015 [Member]
USD ( $)
Jul. 31, 2010
Long-Term 3.625% Notes due 2020 [Member]
Jul. 08, 2010
Long-Term 3.625% Notes due 2020 [Member]
USD ( $)
Jul. 31, 2010
Long-Term 4.875% due 2040 [Member]
Jul. 08, 2010
Long-Term 4.875% due 2040 [Member]
USD ( $)
Jul. 31, 2010
Fixed Rate Fourth Series Bonds [Member]
Jul. 28, 2010
Fixed Rate Fourth Series Bonds [Member]
JPY ( ¥)
Jul. 31, 2010
Fixed Rate Fifth Series Bonds [Member]
Jul. 28, 2010
Fixed Rate Fifth Series Bonds [Member]
JPY ( ¥)
Jul. 31, 2010
Floating Rate Bonds [Member]
Jul. 28, 2010
Floating Rate Bonds [Member]
JPY ( ¥)
Jul. 31, 2009
Revolving Credit Facility [Member]
USD ( $)
Jul. 31, 2009
Revolving Credit Facility [Member]
As Previously Reported [Member]
USD ( $)
Jun. 30, 2009
Letter of Credit [Member]
USD ( $)
Jun. 30, 2009
Letter of Credit [Member]
As Previously Reported [Member]
USD ( $)
Principal amount of notes  $ 750,000,000  $ 1,250,000,000  $ 750,000,000  $ 1,500,000,000  $ 750,000,000  ¥ 60,000,000,000  ¥ 10,000,000,000  ¥ 30,000,000,000
Interest rate 0.02875 0.05625 0.0225 0.03625 0.04875 0.0094 0.016
Interest rate to be added to three month LIBOR 0.0045
Aggregate net proceeds from note issuance 3,000,000,000 1,000,000,000 2,000,000,000
Date of first required payment 01-08-2011 01-28-2011 01-28-2011 10-28-2010
Maturity date 2015-07-08 2020-07-08 2040-07-08 2015-07-28 2020-07-28 2015-07-28
Interest accrual start date 01-28-2010
Line of Credit Facility, Maximum Borrowing Capacity  $ 9,000,000,000  $ 7,000,000,000  $ 2,230,000,000  $ 2,350,000,000
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet30.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements (Details) (USD  $)
In Millions
Jul. 31, 2010
Jan. 31, 2010
Long-term debt, Carrying Value  $ 41,175  $ 37,281
Long-term debt, Fair Value 44,407 39,055
Total Notional Amount 9,235 9,235
Fair Value Hedging [Member] | Fixed-rate interest rate swaps [Member] | Floating-rate interest rate swaps [Member]
Total Notional Amount 4,445 4,445
Fair Value Hedging [Member] | Fixed-rate interest rate swaps [Member] | Floating-rate interest rate swaps [Member] | Fair Value, Inputs, Level 2 [Member]
Total Fair Value 316 260
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Fixed-rate interest rate swaps [Member]
Total Notional Amount 1,250 1,250
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Fixed-rate interest rate swaps [Member] | Fair Value, Inputs, Level 2 [Member]
Total Fair Value 312 189
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Fixed-rate interest rate swaps [Member]
Total Notional Amount 2,902 2,902
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Fixed-rate interest rate swaps [Member] | Fair Value, Inputs, Level 2 [Member]
Total Fair Value 74 286
Cash Flow Hedging [Member] | Fixed-rate interest rate swaps [Member] | Floating-rate interest rate swaps [Member]
Total Notional Amount 638 638
Cash Flow Hedging [Member] | Fixed-rate interest rate swaps [Member] | Floating-rate interest rate swaps [Member] | Fair Value, Inputs, Level 2 [Member]
Total Fair Value (20) (20)
Fair Value, Inputs, Level 2 [Member]
Total Fair Value  $ 682  $ 715
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet31.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative Financial Instruments (Details)
Jul. 31, 2010
JPY ( ¥)
Jul. 31, 2010
USD ( $)
Jul. 31, 2010
Fair Value Instruments [Member]
USD ( $)
Jan. 31, 2010
Fair Value Instruments [Member]
USD ( $)
Jul. 31, 2010
Net Investment Hedge [Member]
USD ( $)
Jan. 31, 2010
Net Investment Hedge [Member]
USD ( $)
Jul. 31, 2010
Net Investment Hedge [Member]
Non-U.S. denominated debt [Member]
Jul. 31, 2010
Cash Flow Instruments [Member]
USD ( $)
Jan. 31, 2010
Cash Flow Instruments [Member]
USD ( $)
Jul. 31, 2010
Cash Flow Instruments [Member]
Non-U.S. denominated debt [Member]
Jul. 31, 2010
GBP [Member]
GBP ( £)
Cash collateral held from counterparties  $ 327,000,000
Threshold of derivative liability position requiring cash collateral 150,000,000
Debt designated as United Kingdom net investment hedge 3,000,000,000
Debt designated as Japanese net investment hedge 437,000,000,000
Other assets and deferred charges 4,092,000,000 316,000,000 260,000,000 312,000,000 189,000,000 74,000,000 286,000,000
Asset Subtotals 316,000,000 260,000,000 312,000,000 189,000,000 74,000,000 286,000,000
Long-term debt 35,629,000,000 316,000,000 260,000,000
Deferred income taxes and other 5,368,000,000 20,000,000 20,000,000
Liability Subtotals  $ 316,000,000  $ 260,000,000  $ 20,000,000  $ 20,000,000
Instrument maturity date range start Feb 2011 Oct 2023 Jan 2011 Aug 2013 Sep 2029
Instrument maturity date range end May 2014 Feb 2030 Jan 2039 Jul 2015 Mar 2034
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet32.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Segments (Details) (USD  $)
In Millions
6 Months Ended
Jul. 31, 2010
Net sales  $ 202,113
Operating income 11,927
Interest, net (956)
Income from continuing operations before income taxes 10,971
Balances - February 1, 2010 16,126
Currency translation (216)
Other 83
Balances - July 31, 2010 15,993
Walmart US [Member]
Net sales 126,978
Operating income 9,494
Balances - February 1, 2010 207
Balances - July 31, 2010 207
Walmart International [Member]
Net sales 50,931
Operating income 2,382
Balances - February 1, 2010 15,606
Currency translation (216)
Other 83
Balances - July 31, 2010 15,473
Sam's Club [Member]
Net sales 24,204
Operating income 857
Balances - February 1, 2010 313
Balances - July 31, 2010 313
Other Segments [Member]
Operating income  $ (806)
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet33.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accumulated Other Comprehensive Loss (Details) (USD  $)
In Millions
6 Months Ended
Jul. 31, 2010
Jul. 31, 2010
UK And Japan Operations [Member]
Jul. 31, 2010
Currency Translation [Member]
Balances - February 1, 2010  $ (70)  $ 348
Currency translation adjustment (1,004) (1,004)
Net change in fair value of derivatives (25)
Balances - July 31, 2010 (1,099) (656)
Net translation loss related to net investment hedges 593
Currency translation gains on the re-measurement, non US debt  $ 111
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet34.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Common Stock Dividends (Details) (USD  $)
6 Months Ended
Jul. 31, 2010
Annual dividend approved by Board of Directors for 2011  $ 1.21
Percentage increase over 2010 dividend 0.11
Number of dividend payments for 2010 4
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet35.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Legal Proceedings (Details) (USD  $)
In Millions
1 Months Ended 15 Months Ended
Oct. 13, 2006
Nov. 14, 2007
Jury Award  $ 78
Litigation Settlement, Gross  $ 188
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/Sheet36.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Acquisitions (Details)
In Millions
6 Months Ended
Jul. 31, 2010
GBP ( £)
Jul. 31, 2010
USD ( $)
Company subsidiary, ASDA signs agreement with Dansk Supermarket on May 27, 2010 to purchase Netto foodstores Netto Foodstores Limited
Number of Stores Operated by Netto 193
Average Square Footage Netto Store 8,000
Business Acquisition Estimated Cost Of Acquired Entity Purchase Price  £ 778  $ 1,200
------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce Content-Location: file:///C:/2dc41e22_62a7_4d2b_abcb_38604a0986ce/Worksheets/filelist.xml Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" ------=_NextPart_2dc41e22_62a7_4d2b_abcb_38604a0986ce--