Appendix D Specimen Financial Statements: Amazon.com, Inc. Amazon.com, Inc. is the world's largest online retailer. It also produces consumer electronics-notably the Kindle e-book reader and the Alexa digital assistant in its Echo speakers-and is a major provider of cloud computing services. The following are Amazon's financial statements as presented in the company's 2016 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2014 2015 8,658 $ 14,557 $ 2016 15,890 (241) 596 2,371 4,746 1,497 129 6,281 2,119 155 8,116 2,975 160 (20) (246) (829) 250 (316) 81 (119) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income (loss) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs Stock-based compensation Other operating expense, net Other expense (income), net Deferred income taxes Excess tax benefits from stock-based compensation Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to unearned revenue Amortization of previously unearned revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repayments of finance lease obligations Net cash provided by used in) financing activities Foreign currency effect on cash and cash equivalents Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: (1.193) (1,039) 1,759 706 4,433 (3.692) 6,842 (2,187) (1.755) 4,294 913 7,401 (6,109) 11.920 (1,426) (3,367) 5,030 1,724 11,931 (9.976) 16,443 (4.893) (979) 3,349 (2,542) (5,065) (4,589) (795) 3,025 (4,091) (6,450) (6,737) (116) 4,733 (7,756) (9,876) 6,359 (513) (1.285) (135) 4,432 (310) 5,899 14,557 $ 119 353 (1,652) (2,462) (121) (3,763) (374) 1,333 15.890 S 829 621 (354) (3.860) (147) (2,911) (212) 3,444 19,334 91 $ 290 86 206 Cash paid for interest on long-term debt Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital leases Property and equipment acquired under build-to-suit leases 177 4,008 920 323 $ 153 273 4,717 544 412 5,704 1.209 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) 2015 $ Year Ended December 31, 2014 70,080 $ 79,268 $ 18,908 27,738 88,988 107,006 2016 94,665 41,322 135,987 88,265 17,619 7,233 62,752 10,766 4,332 9,275 1,552 133 88,810 178 71,651 13,410 5,254 12,540 1,747 171 104,773 2,233 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income (loss) before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income (loss) Basic earnings per share Diluted earnings per share Weighted average shares used in computation of earnings per share: Basic Diluted 16,085 2,432 167 131.801 4,186 100 (484) 90 50 (294) (210) (118) (289) (111) (167) 37 (241) $ (0.52) $ (0.52) $ (459) (256) (665) 1,568 (950) (22) 596 1.28 1.25 3,892 (1,425) (96) 2.371 5.01 4.90 $ $ $ $ $ 474 462 462 467 477 484 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2014 2015 (241) $ 596 $ 2016 2,371 $ (325) (210) (279) Net income (loss) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $(3). $10, and $(49) Net change in unrealized gains (losses) on available-for-sale securities: Unrealized gains (losses), net of tax of $1, $(5), and $(12) Reclassification adjustment for losses (gains) included in "Other income (expense), net, net of tax of $(1), $0, and $0 Net unrealized gains (losses) on available-for-sale securities Total other comprehensive income (loss) Comprehensive income (loss) 5 17 (262) (326) (567) $ (212) 384 $ 2,109 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2015 2016 $ ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY 15,890 $ 3,918 10,243 5,654 35,705 21,838 3,759 3,445 64,747 $ 19,334 6,647 11,461 8,339 45,781 29,114 3,784 4,723 83,402 ble 20,397 $ 10,372 3,118 33,887 8,227 9,249 23,309 13,739 4,768 43,816 7,694 12,607 Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none Common stock, $0.01 par value: Authorized shares 5,000 Issued shares 494 and 500 Outstanding shares 471 and 477 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5 (1,837) 13,394 (723) 2,545 13,384 64,747 $ (1,837) 17,186 (985) 4,916 19,285 83,402 $ See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stock Amount Shares 459 $ Accumulated Additional Other Treasury Paid-In Comprehensive Stock Capital Income (Loss) (1,837) $ 9,573 $ (185) $ 5 $ Balance as of January 1, 2014 Net loss Other comprehensive income (loss) Total Retained Stockholders' Earnings Equity 2,190 $ 9,746 (241) (241) (326) (326) 1,510 1,510 44 44 11,135 1,949 10.741 96 596 (212) | 4 Talli I Lalla La Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2014 Net income Other comprehensive income (loss) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2015 Net income Other comprehensive income (loss) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2016 IIIIIIIIIIIIIIIII 119 | 2,131 2,131 | 5 13.394 17232.54513,384 (1,837) 13,394 2,545 2,371 - 13,384 2,371 (262) (262) | - 829 - - 829 | 2,962 17,186 2,962 19,285 477 $ 5 $ (1,837) $ $ (985) $ 4,916 $ See accompanying notes to consolidated financial statements. Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc. The following are Wal-Mart Stores, Inc.'s financial statements as presented in the company's annual report for the year ended January 31, 2017. The complete annual report, including notes to the financial statements, is available at the company's website. Wal-Mart Stores, Inc. Consolidated Statement of Income Fiscal Years Ended January 31, 2017 2016 2015 $478,614 $481,317 4,556 485,873 3,516 $482,229 3,422 485,651 482,130 361,256 101,853 22,764 360,984 97,041 24,105 365,086 93,418 27,147 (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Capital lease and financing obligations Interest income Interest, net Income from continuing operations before income taxes Provision for income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart 2,161 300 (113) 2,044 323 (100) 2,267 20,497 6,204 14,293 2,027 521 (81) 2,467 21,638 6,558 15,080 2,348 24,799 7,985 16,814 285 14,293 (650) $ 13,643 15,080 (386) $ 14,694 17,099 (736) $ 16,363 $ 4.40 $ 4.58 $ 5.01 0.06 5.07 $ 4.40 $ 4.58 $ $ 4.38 $ 4.57 $ 4.99 Basic net income per common share: Basic income per common share from continuing operations attributable to Walmart Basic income per common share from discontinued operations attributable to Walmart Basic net income per common share attributable to Walmart Diluted net income per common share: Diluted income per common share from continuing operations attributable to Walmart Diluted income per common share from discontinued operations attributable to Walmart Diluted net income per common share attributable to Walmart Weighted average common shares outstanding: Basic Diluted Dividends declared per common share - 0.06 $ 4.38 $ 4.57 $ 5.05 3,101 3,112 2.00 3,207 3,217 1.96 3,230 3,243 1.92 $ $ $ See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statement of Comprehensive Income (Amounts in millions) Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Consolidated net income attributable to Walmart Fiscal Years Ended January 31, 2017 2016 2015 $14,293 $15,080 $17,099 (650) (386) (736) 13,643 14,694 16,363 Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest Comprehensive income attributable to Walmart (2,882) 413 21 (397) (2,845) 210 (2,635) 11,448 (440) $11,008 (5,220) 366 (202) 86 (4,970) 541 (4,429) 10,110 155 $10,265 (4,558) 379 (470) (69) (4,718) 546 (4,172) 12,381 (190) $12,191 See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statements of Shareholders' Equity and Redeemaole Noncontrolling Interest Capital in Excess of Par Value Common Stock Shares Amount 3,233 $323 Nonredeemable Noncontrolling Interest (Amounts in millions) Accumulated Total Other Walmart Comprehensive Shareholders' Loss Equity $ 2,996) $76,255 16,363 Redeemable Noncontrolling interest Retained Earnings $76,566 16,363 Total Equity $81,339 17,099 $2,362 $ 1,491 $5,084 736 I (4.172) (4,172) (546) (4,718) (13) (1) (29) (6,185) (950) (6,185) (980) (6,185) (980) (1.491) 11 113 129 3232,462 3,228 (17) 85,777 14,694 (7,168) 81,394 14,694 (731) 4,543 386 (618) 85,937 15,080 - (4.429) (4,429) (541) (4,970) Balances as of February 1, 2014 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.92 per share) Purchase of Company stock Purchase of redeemable noncontrolling interest Other Balances as of January 31, 2015 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.96 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2016 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($2.00 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2017 (102) (6,294) (4,148) (6,294) (4,256) (6,294) (4,256) el (691) - (555) (632) 3,162 (691) (1,195) 83,611 14,293 317 (8) 90,021 13,643 1,805 (563) 80,546 13,643 (11,597) 3,065 650 - - - (2,635) (2,635) (210) (2,845) (6,216) (8,090) (6,216) (8,276) (6,216) (8,276) 174) (519) 3,048 - $305 740 $2,371 487 (4) $89,354 (519) (249) $2,737 736 $77,798 $(14,232) $80,535 $ - See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statements of Cash Flow Fiscal Years Ended January 31, 2017 2016 2015 $14,293 $ 15,080 $17,099 (285) 16,814 14,293 15,080 (Amounts in millions) Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities 10,080 761 206 9,454 (672) 1,410 9,173 (503) 785 (402) 1,021 3,942 1,137 492 (19) (703) 2,008 1,303 (472) 27,389 (569) (1,229) 2,678 1,249 166 28,564 31,530 (11,477) 635 246 (12,174) 570 671 Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Purchase of available for sale securities Investment and business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities (10,619) 456 662 (1,901) (2,463) (122) (13,987) (79) (10,675) (192) (11,125) (1,673) 137 Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payments of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities Net cash used in financing activities (2,055) (6,216) (8,298) (479) (90) (255) (18,929) 1,235 39 (4.432) (6,294) (4,112) (719) (1,326) (513) (16,122) (6,288) 5,174 (3,904) (6,185) (1,015) (600) (1,844) (409) (15,071) Effect of exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (452) (1,838) 8,705 $ 6,867 (1,022) (430) 9,135 $ 8,705 (514) 1,854 7,281 $ 9,135 Supplemental disclosure of cash flow information: Income taxes paid Interest paid 4,507 2,351 8,111 2,540 8,169 2,433 Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Click here to view Appendix E. (a) Based on the information contained in these financial statements, compute free cash flow for Amazon at December 31, 2016 and Wal-Mart for January 31, 2017. (Show a negative free cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000). Enter amounts in millions.) Amazon.com, Inc. Wal-Mart Stores, Inc. Free cash flow $ Appendix D Specimen Financial Statements: Amazon.com, Inc. Amazon.com, Inc. is the world's largest online retailer. It also produces consumer electronics-notably the Kindle e-book reader and the Alexa digital assistant in its Echo speakers-and is a major provider of cloud computing services. The following are Amazon's financial statements as presented in the company's 2016 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2014 2015 8,658 $ 14,557 $ 2016 15,890 (241) 596 2,371 4,746 1,497 129 6,281 2,119 155 8,116 2,975 160 (20) (246) (829) 250 (316) 81 (119) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income (loss) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs Stock-based compensation Other operating expense, net Other expense (income), net Deferred income taxes Excess tax benefits from stock-based compensation Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to unearned revenue Amortization of previously unearned revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repayments of finance lease obligations Net cash provided by used in) financing activities Foreign currency effect on cash and cash equivalents Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: (1.193) (1,039) 1,759 706 4,433 (3.692) 6,842 (2,187) (1.755) 4,294 913 7,401 (6,109) 11.920 (1,426) (3,367) 5,030 1,724 11,931 (9.976) 16,443 (4.893) (979) 3,349 (2,542) (5,065) (4,589) (795) 3,025 (4,091) (6,450) (6,737) (116) 4,733 (7,756) (9,876) 6,359 (513) (1.285) (135) 4,432 (310) 5,899 14,557 $ 119 353 (1,652) (2,462) (121) (3,763) (374) 1,333 15.890 S 829 621 (354) (3.860) (147) (2,911) (212) 3,444 19,334 91 $ 290 86 206 Cash paid for interest on long-term debt Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital leases Property and equipment acquired under build-to-suit leases 177 4,008 920 323 $ 153 273 4,717 544 412 5,704 1.209 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) 2015 $ Year Ended December 31, 2014 70,080 $ 79,268 $ 18,908 27,738 88,988 107,006 2016 94,665 41,322 135,987 88,265 17,619 7,233 62,752 10,766 4,332 9,275 1,552 133 88,810 178 71,651 13,410 5,254 12,540 1,747 171 104,773 2,233 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income (loss) before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income (loss) Basic earnings per share Diluted earnings per share Weighted average shares used in computation of earnings per share: Basic Diluted 16,085 2,432 167 131.801 4,186 100 (484) 90 50 (294) (210) (118) (289) (111) (167) 37 (241) $ (0.52) $ (0.52) $ (459) (256) (665) 1,568 (950) (22) 596 1.28 1.25 3,892 (1,425) (96) 2.371 5.01 4.90 $ $ $ $ $ 474 462 462 467 477 484 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2014 2015 (241) $ 596 $ 2016 2,371 $ (325) (210) (279) Net income (loss) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $(3). $10, and $(49) Net change in unrealized gains (losses) on available-for-sale securities: Unrealized gains (losses), net of tax of $1, $(5), and $(12) Reclassification adjustment for losses (gains) included in "Other income (expense), net, net of tax of $(1), $0, and $0 Net unrealized gains (losses) on available-for-sale securities Total other comprehensive income (loss) Comprehensive income (loss) 5 17 (262) (326) (567) $ (212) 384 $ 2,109 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2015 2016 $ ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY 15,890 $ 3,918 10,243 5,654 35,705 21,838 3,759 3,445 64,747 $ 19,334 6,647 11,461 8,339 45,781 29,114 3,784 4,723 83,402 ble 20,397 $ 10,372 3,118 33,887 8,227 9,249 23,309 13,739 4,768 43,816 7,694 12,607 Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none Common stock, $0.01 par value: Authorized shares 5,000 Issued shares 494 and 500 Outstanding shares 471 and 477 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5 (1,837) 13,394 (723) 2,545 13,384 64,747 $ (1,837) 17,186 (985) 4,916 19,285 83,402 $ See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stock Amount Shares 459 $ Accumulated Additional Other Treasury Paid-In Comprehensive Stock Capital Income (Loss) (1,837) $ 9,573 $ (185) $ 5 $ Balance as of January 1, 2014 Net loss Other comprehensive income (loss) Total Retained Stockholders' Earnings Equity 2,190 $ 9,746 (241) (241) (326) (326) 1,510 1,510 44 44 11,135 1,949 10.741 96 596 (212) | 4 Talli I Lalla La Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2014 Net income Other comprehensive income (loss) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2015 Net income Other comprehensive income (loss) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2016 IIIIIIIIIIIIIIIII 119 | 2,131 2,131 | 5 13.394 17232.54513,384 (1,837) 13,394 2,545 2,371 - 13,384 2,371 (262) (262) | - 829 - - 829 | 2,962 17,186 2,962 19,285 477 $ 5 $ (1,837) $ $ (985) $ 4,916 $ See accompanying notes to consolidated financial statements. Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc. The following are Wal-Mart Stores, Inc.'s financial statements as presented in the company's annual report for the year ended January 31, 2017. The complete annual report, including notes to the financial statements, is available at the company's website. Wal-Mart Stores, Inc. Consolidated Statement of Income Fiscal Years Ended January 31, 2017 2016 2015 $478,614 $481,317 4,556 485,873 3,516 $482,229 3,422 485,651 482,130 361,256 101,853 22,764 360,984 97,041 24,105 365,086 93,418 27,147 (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Capital lease and financing obligations Interest income Interest, net Income from continuing operations before income taxes Provision for income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart 2,161 300 (113) 2,044 323 (100) 2,267 20,497 6,204 14,293 2,027 521 (81) 2,467 21,638 6,558 15,080 2,348 24,799 7,985 16,814 285 14,293 (650) $ 13,643 15,080 (386) $ 14,694 17,099 (736) $ 16,363 $ 4.40 $ 4.58 $ 5.01 0.06 5.07 $ 4.40 $ 4.58 $ $ 4.38 $ 4.57 $ 4.99 Basic net income per common share: Basic income per common share from continuing operations attributable to Walmart Basic income per common share from discontinued operations attributable to Walmart Basic net income per common share attributable to Walmart Diluted net income per common share: Diluted income per common share from continuing operations attributable to Walmart Diluted income per common share from discontinued operations attributable to Walmart Diluted net income per common share attributable to Walmart Weighted average common shares outstanding: Basic Diluted Dividends declared per common share - 0.06 $ 4.38 $ 4.57 $ 5.05 3,101 3,112 2.00 3,207 3,217 1.96 3,230 3,243 1.92 $ $ $ See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statement of Comprehensive Income (Amounts in millions) Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Consolidated net income attributable to Walmart Fiscal Years Ended January 31, 2017 2016 2015 $14,293 $15,080 $17,099 (650) (386) (736) 13,643 14,694 16,363 Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest Comprehensive income attributable to Walmart (2,882) 413 21 (397) (2,845) 210 (2,635) 11,448 (440) $11,008 (5,220) 366 (202) 86 (4,970) 541 (4,429) 10,110 155 $10,265 (4,558) 379 (470) (69) (4,718) 546 (4,172) 12,381 (190) $12,191 See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statements of Shareholders' Equity and Redeemaole Noncontrolling Interest Capital in Excess of Par Value Common Stock Shares Amount 3,233 $323 Nonredeemable Noncontrolling Interest (Amounts in millions) Accumulated Total Other Walmart Comprehensive Shareholders' Loss Equity $ 2,996) $76,255 16,363 Redeemable Noncontrolling interest Retained Earnings $76,566 16,363 Total Equity $81,339 17,099 $2,362 $ 1,491 $5,084 736 I (4.172) (4,172) (546) (4,718) (13) (1) (29) (6,185) (950) (6,185) (980) (6,185) (980) (1.491) 11 113 129 3232,462 3,228 (17) 85,777 14,694 (7,168) 81,394 14,694 (731) 4,543 386 (618) 85,937 15,080 - (4.429) (4,429) (541) (4,970) Balances as of February 1, 2014 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.92 per share) Purchase of Company stock Purchase of redeemable noncontrolling interest Other Balances as of January 31, 2015 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.96 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2016 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($2.00 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2017 (102) (6,294) (4,148) (6,294) (4,256) (6,294) (4,256) el (691) - (555) (632) 3,162 (691) (1,195) 83,611 14,293 317 (8) 90,021 13,643 1,805 (563) 80,546 13,643 (11,597) 3,065 650 - - - (2,635) (2,635) (210) (2,845) (6,216) (8,090) (6,216) (8,276) (6,216) (8,276) 174) (519) 3,048 - $305 740 $2,371 487 (4) $89,354 (519) (249) $2,737 736 $77,798 $(14,232) $80,535 $ - See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statements of Cash Flow Fiscal Years Ended January 31, 2017 2016 2015 $14,293 $ 15,080 $17,099 (285) 16,814 14,293 15,080 (Amounts in millions) Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities 10,080 761 206 9,454 (672) 1,410 9,173 (503) 785 (402) 1,021 3,942 1,137 492 (19) (703) 2,008 1,303 (472) 27,389 (569) (1,229) 2,678 1,249 166 28,564 31,530 (11,477) 635 246 (12,174) 570 671 Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Purchase of available for sale securities Investment and business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities (10,619) 456 662 (1,901) (2,463) (122) (13,987) (79) (10,675) (192) (11,125) (1,673) 137 Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payments of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities Net cash used in financing activities (2,055) (6,216) (8,298) (479) (90) (255) (18,929) 1,235 39 (4.432) (6,294) (4,112) (719) (1,326) (513) (16,122) (6,288) 5,174 (3,904) (6,185) (1,015) (600) (1,844) (409) (15,071) Effect of exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (452) (1,838) 8,705 $ 6,867 (1,022) (430) 9,135 $ 8,705 (514) 1,854 7,281 $ 9,135 Supplemental disclosure of cash flow information: Income taxes paid Interest paid 4,507 2,351 8,111 2,540 8,169 2,433 Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Click here to view Appendix E. (a) Based on the information contained in these financial statements, compute free cash flow for Amazon at December 31, 2016 and Wal-Mart for January 31, 2017. (Show a negative free cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000). Enter amounts in millions.) Amazon.com, Inc. Wal-Mart Stores, Inc. Free cash flow $