Exhibits 1.19, 1.20, and 1.21 of Integrative Case 1.1 (Chapter 1) present the financial statements for Walmart for 2012-2015. In addition, the website for this contains Walmart's Decemember 31, 2015, Form 10-K. You should read the management dicussion ans analysis (MD&A), financial statements, and notes to the financial statements, especially Note 2, "Summary of Signifinicant Accounting Policies."
1. Operantions create working capital accounts. Which of Walmart's working capital accounts are the most finanically significant?
2. Does Walmart's working capital management yield a positive or negative investment in working capital? Is this a good situation for Walmart's profitabililty? Why?
3. Note 9 to Walmart's consolidated financial statements presents a substantial amount of income tax-related informtion, icluding an effective income tax rate reconciliation. Which reconciling items appear to be relatively persistent?
4. What is the effect of Walmart's generation of income in foreign jurisdictions on the effective tax rate? Is the effect changing over time?
5. Are Walmart's foreign earnings growing relative to U. S. earnings?
HUUU Financial Statements Exhibit 1.19 presents comparative balance sheets, Exhibit 1.20 presents comparative income statements, and Exhibit 1.21 presents comparative statements of cash flows for Walmart for the three fiscal years ending January 31, 2014, 2015, and 2016. Walmart prepares its financial statements in accordance with U.S. GAAP. For more detail on Walmart financial statements, or to download the fiscal 2015 Form 10-K, you can visit Walmart's investor relations page: www.stock.walmart.com/investors/default.aspx. * Exhibit 1.19 Wal-Mart Stores, Inc. Balance Sheets as of January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 521 Assets: Cash and cash equivalents $7281 $ 9,135 $ 8.705 Accounts and notes receivable-net 6.677 6,778 5,624 Inventories 44.858 45,141 44469 Prepaid expenses and other current assets 1,909 2.224 Current assets of discontinued segments 460 Current Assets $61,185 $63,278 $ 60,239 Property, plant and equipment-at cost 178,678 182,634 188,054 Accumulated depreciation (60,7711 (65,979) 171.538) Goodwill 19,510 18,102 16,695 Other assets 6,149 5.455 6131 Total Assets $204,751 $203,490 $199.581 Liabilities and Equities: Accounts payable $ 37 415 $ 38,410 $ 38,487 Current accrued expenses 18.793 19,152 19,607 Notes payable and short-term debt 7670 1.592 2,708 Current maturities of long-term debt 4412 5,078 3.296 Income taxes payable 966 1,021 Current liabilities of discontinued operations 89 Current Liabilities $ 69,345 $ 65,253 $ 64,619 Long-term debt obligations 44,559 43,495 44,030 Deferred tax liabilities-noncurrent 8,017 8,805 7,321 Redeemable noncontrolling interest 1.491 Total Liabilities $123,412 $117,553 $115,970 Common stock - Additional paid in capital 2,685 2.785 2.122 Retained earings 76,566 85,777 90,021 Accum. other comprehensive income foss) 12.996 17.168) (11.5971 Total Common Shareholders' Equity $ 76,255 $ 81,394 $ 80,546 Noncontrolling interests 5,084 4,543 3,065 Total Equity $ 81,339 $ 85,937 $ 83.611 Total Liabilities and Equities $204,751 $203,490 $199,581 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Exhibit 1.20 Wal-Mart Stores, Inc. Income Statements for the Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 Revenues Cost of goods sold Gross Profit Selling general, and administrative expenses Operating Profit Interest income Interest expense Income before Tax Income tax expense Income (Loss) from discontinued operations Net Income Net income attributable to noncontrolling interests Net Income Attributable to Common Shareholders Other comprehensive income items Comprehensive Income 5476.294 358,069 $118.225 91353 $ 26,872 119 (2,335) $ 24,656 8,105 144 $ 16,695 (673) $ 16,022 (2.409) $ 13,613 $ 485651 365 ORA $120,565 93,418 $ 27,147 113 2.461) $ 24,799 7,985 285 $ 17,099 1736) $ 16,363 14,172) $ 12.191 5482130 360934 $121,146 97.041 $ 24,105 81 12.548) $ 21,638 6,558 $ 15.080 (386) $ 14,694 (4429) $10.265 Source: Wal-Mart Stores, Inc. Form 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Exhibit 1.21 Wal-Mart Stores, Inc. Statements of Cash Flows for the Three Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 $ 16,695 8,870 (279) (566) (1.667) 531 11.224 103 (144) 938 $ 23,257 727 (13,115) $ 17,099 9,173 (503) (569) (1.2291 2,678 166 1.249 (285) 785 $ 28,564 570 (12,174) $ 15,080 9,454 (672) (191 (703) 2008 (472) 1,303 Net Income Add back depreciation and amortization expenses Deferred income taxes (Increasel Decrease in accounts receivable (Increasel Decrease in inventories Increase Decrease) in accounts payable Increase (Decrease) in income taxes payable Increase (Decrease in other current liabilities (Income) Loss from discontinued segments Other operating cash flows Net Cash Flow from Operating Activities Proceeds from sales of property, plant, and equipment Property, plant, and equipment acquired Investments acquired Other investment transactions Net Cash Flow from Investing Activities Increase (Decrease in short-term borrowing Increase Decrease in long term borrowing Share repurchases-treasury stock Dividend payments Other financing activities Net Cash Flow from Financing Activities Effects of exchange rate changes on cash Net Change in Cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 1410 $ 27,389 635 (11.477) 167 $110,675) 1.235 (138) $112,526) 911 2,104 (6,683) (6.139) (982) $110,789) (442) 5 (1500) $ 7.781 $7281 479 $(11.125) (6,2881 1.270 (1015) (6.185) 28539 5(15,071) 1514) $ 1,854 $ 7.281 59,135 (4.3937 14,1121 (6.294) 12558 $116,122) 11.022 $(430) $9.135 $ 8.705 263 -113 Consolidated Statements of income (USD $ 12 Months Ended In Millions, except Per Share data, unless Jan. 31, 2015 Jan. 31, 2014 Jan. 31, 2013 otherwise specified Revenues Net sales $492,229 $473,076 $465,604 Membership and other income 3,422 3,218 3,047 Total revenues 485,651 476,294 468,651 Costs and expenses: Cost of sales 365,086 358,069 352,297 Operating selling general and administrative expenses 93,418 91,353 88,629 Operating income 27,147 26,872 27,725 Interest: Debt 2,161 2,072 1,977 Capital leases 300 272 Interest Income -119 -186 Interest, net 2,348 2,216 2,063 Income from continuing operations before Income taxes 24,799 24,656 25,662 Provision for income taxes: Current 8,504 8,519 7.976 Deferred -519 -514 -18 Total provision for Income taxes 7,985 8,105 7,958 Income from continuing operations 16,814 16,551 17,704 Income from discontinued operations, net of Income taxes 285 144 52 Consolidated net Income 17,099 16,695 17,756 Less consolidated net income attributable to noncontrolling interest -736 -673 -757 Consolidated net income attributable to Walmart $16,363 516,022 $16,999 Basie net income per common share: Basic income per common share from continuing operations attributable to Walmart $5.01 $4.87 $5.03 Basic income per common share from discontinued operations attributable to Walmart $0.06 $0.03 $0.01 Basic net income per common share attributable to Walmart $5.07 $4.90 $5.04 Diluted net Income per common share Diluted Income per common share from continuing operations attributable to Walmart $4.99 $4.85 $5.01 Diluted income per common share from discontinued operations attributable to Walmart 50.06 $0.03 $0 01 Diluted net income per common share attributable to Walmart SS.OS $4.88 $5.02 Weighted average common shares outstanding Basic 3,230 3,269 3,374 Olluted 3,243 2,23 3,389 Dividendis de ed per common share 51.92 $1.88 $1 59 Consolidated Statements of comprehensive 12 Months Ended In Millions, unless otherwise specified Jan. 31, 2015 Jan. 31, 2014 Jan. 31, 2013 Statement of Comprehensive income [Abstract] Consolidated net income $17,099 $16,695 $17,756 Less consolidated net income attributable to nonredeemable noncontrolling interest -736 -606 -684 Less consolidated net income attributable to redeemable noncontrolling interest 0 -67 -73 Consolidated net income attributable to Walmart 16,363 16,022 16,999 Other comprehensive income (loss), net of Income taxes Currency translation and other -4,179 -3,146 1,042 Derivative Instruments -470 207 136 Minimum pension liability -69 153 -166 Other comprehensive income (loss), net of Income taxes -4,718 -2,786 1,012 Less other comprehensive Income (loss) attributable to nonredeemable noncontrolling interest 546 311 -138 Less other comprehensive income (loss) attributable to redeemable noncontrolling interest -66 51 Other comprehensive income (loss) attributable to Walmart -4,172 -2,409 823 Comprehensive income, net of income taxes 12,381 13,909 18,768 Less comprehensive income attributable to nonredeemable noncontrolling interest -190 -295 -822 Less comprehensive income attributable to redeemable noncontrolling interest 0 -1 -124 Comprehensive income attributable to Walmart $12, 191 $13,613 $17,822 0 Jan. 31, 2015 Jan. 31, 2014 Consolidated Balance Sheets (USDS) In Millions, unless otherwise specified Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Current assets of discontinued operations $9,135 6,778 45,141 2,224 $7,282 6,677 44,858 1,909 0 63,278 460 61.185 177,395 -63,115 114,280 173,089 -57,725 115,364 Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital leases: Property under capital leases Less accumulated amortization Property under capital leases, net Goodwill Other assets and deferred charges Total assets Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued Income taxes Long-term debt due within one year Obligations under capital leases due within one year Current liabilities of discontinued operations 5,239 -2,864 2,375 18,102 5,671 203,706 5,589 -3,046 2,543 19,510 6,149 204,751 1,592 38,410 19,152 1,021 4,810 7,670 37,415 18,793 966 4,103 287 309 Total current liabilities Long-term debt Long-term obligations under capital leases 0 65,272 41,086 89 69,345 41,771 2,606 8,805 0 2,788 8,017 1,491 Deferred Income taxes and other Redeemable noncontrolling interest Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive Income (loss) Total Walmart shareholders' equity Nonredeemable no controlling interest 323 2,462 85,777 323 2.362 76,566 -7,168 81,394 -2,996 76,255 4,543 85.937 5,084 81,339 Total equity Total liabilities, redeemable no controlling Interest, and equity $203,706 $204,751 OYS IN -14 LTH ER htam NE 39 NO GE 2400 - LU 15 SA IL E RE RE 6 . 000 1 ET FH HET 12 Months Ended Jan. 31, 2015 Jan. 31, 2014 Jan. 31, 2013 $17,099 $16,695 $17,756 -285 16,814 -144 16,551 -52 17,704 Consolidated Statements of Cash Flows in Million, unless otherwise specified Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of Income taxes Income from continuing operations Adjustments to reconcile consoliated net Income to net cash provided by operating activities: Depreciation and amortization Deferred Income taxes Other operating activities Changes in certain assets and abilities, net of effects of acquisitions 9,173 -503 785 8,870 -279 938 8,478 -133 602 -569 -1,229 Receivables, net Inventories Accounts payable Accrued liabilities Accrued Income taxes Net cash provided by operating activities 2,678 1.249 166 -566 -1,667 531 103 -1,224 -614 -2,759 1,061 271 981 28,564 23,257 25,591 -12,174 -13,115 -12,898 570 727 532 O 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 Other investing activities Net cash used in investing activities Cash flows from financing activities: Net change in short-term borrowing Proceeds Payments of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest 671 - 192 -11,125 0 -138 -12,526 -271 -12,637 -6,288 5.174 3,904 -6,185 1,015 911 7,072 -4.968 6,139 2,754 211 -1,478 5,361 -7,600 -600 -1,844 -409 -15,071 -426 -296 -260 -10,789 -282 -132 -58 -11,946 Purchase of noncontrolling interest Other financing activities Netcash used in financing activities Effect of change rates on cash and cash equivalent Net Increase (decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year -514 442 223 1,854 -500 1,231 7,281 7,781 6,550 9,135 Supplemental disore of cash flow Information 7,201 7.781 1,169 52.433 3,641 $2.362 7,304 Taxes Income Tax Disclosure [Abstract] Income tax disclosure Taxes Income from Continuing Operations The components of income from continuing operations before income t (Amounts in million US Non-US Total income from continuing operations before Income taxes A summary of the provision for income taxes is as follows: Amounts on millions Current U.S. federal U.S. State and local International Total current tax provision Deferred: u. Sederal U.S. state and local Intematon Total deferred tax expense benefit Total provision for Income taxes Effective Income Tax Rate Reconciliation The Company's effective income tax rate is typically lower than the US the Company's significant accounting policies in Note 1. The Company Income tax. A reconciliation of the significant differences between the U (1.5 U.S. statutory tax rate 35 US state income taxes, net of federal income tax ta benefit Income taxed outside the US 2.7 Not impact of repatriated international oaming Othernet 10.4 Effective Income tax rate 322 Deferred Taxes The significant components of the Company's deferred tax account bal (Amounts in millions) Deferred tax asset: Loss and tax credit carryforwards Accrued liabilities Share-based compensation Other Total deferred tax assets Valuation allowances Deferred tax assets, not of valuation allowance Deferred tax liabilities: Property and equipment Inventories Other Total deferred tax liabilities Not deferred tax liabilities The deferred taxes are classified as follows in the Company's Consolidi (Amount in milione) Balance Sheet classification: Assets Prepaid expenses and other Other assets and deferred charges Asset subtotals Llabilities: Accrued labilities Deferred income taxes and other Liability subtotale Net deferred tax liabilities Unremitted Earnings U.S. Income taxes have not been provided on accumulated but undistril of the U.S. However, if any portion were to be distributed, the related U. its hypothetical calculation. The Company provides deferred or current i Net Operating Losses, Tax Credit Carryforwards and Valuation Allowan At January 31, 2015, the Company had net operating loss and capital lc 2016, the Company had foreign tax credit carryforwards of $2.0 billion, The recoverability of these future tax deductions and credits is evaluate planning strategies. To the extent management does not consider it mo deferred tax assets will be realized, the valuation allowance is released. As of January 31, 2015 and 2014, the Company had valuation allowanc deferred tax asset will not be realized. The $0.3 billion net decrease in t and deductible temporary differences arising in fiscal 2015, decreases Uncertain Tax Positions The benefits of uncertain tax positions are recorded in the Company's As of January 31, 2015 and 2014, the amount of unrecognized tax bent January 31, 2015 and 2014, respectively. A reconciliation of unrecognized tax benefits from continuing operations Amounts in millions Unrecognized tax benefits, beginning of year Increases related to prior year tax positions Decreases mutated to pror your tax positions Increases related to current year tax positions Settlements during the period Lapre in statutes of limitations Unrecognized tax benefits, and of year The Company classifies interest and penalties related to uncertain taxt tax positions of $18 million, $(7) million and $2 million, respectively. As accrued penalties recorded for income taxes as of January 31, 2015 or During the next twelve months, it is reasonably possible that tax audit re focused on resolving tax audits as expeditiously as possible. As a result Financial Statements. The Company remains subject to income tax examinations for its U.S. generally for the fiscal years ended 2006 through 2015 Other Taxes The Company is subject to tax examinations for payroll, value added, st connection with these examinations. Where a probable loss has occur group of related matters, if decided adversely to the Company, could re Jan. 31, 2015 axes are as follows: Fiscal Years El 2015 18.610 5,180 24,799 Fiscal Years Er 2015 6,185 810 1,529 8,504 (387 (55 T7 (519) 7,885 statutory tax rate primarily because of benefits from lower-taxed global operations, including the use non-US. Income is generally subject to local country tax rates that are below the 35% U.S. statutor S. statutory tax rate and the effective income tax rate on pretax income from continuing operations i 2015 Fiscal Yoars Ended January 31, 2014 35 2 % (2.8) (1.4) 0.1 32.9 % % y% 55 ances are as follows: January 31, 2015 3.255 3,305 184 1.119 7,953 (1504) 6,449 5,972 1,825 1.818 9.415 2.968 ated Balance Sheets: January 31, 2015 728 1,033 1,761 4,671 4727 2.906 buted earnings of the Company's international subsidiaries of approximately $23.3 billion and $21.46 S, tax liability may be reduced by foreign income taxes paid on those earnings. Determination of the ncome taxes on earnings of international subsidiaries in the period that the Company determines it cos iss carryforwards totaling approximately $6.6 billion. Of these carryforwards, approximately $2.9 billio which will expire in various years through 2025, if not utilized. d by assessing the adequacy of future expected taxable income from all sources, including taxable ir re likely than not that a deferred tax asset will be realized, a valuation allowance is established. If av es recorded of approximately $1.5 billion and $1.8 billion, respectively, on deferred tax assets associ he valuation allowance during fiscal 2015 related to releases arising from the use of deferred tax ass due to operating loss expirations and fluctuations in currency exchange rates, Management believes Consolidated Financial Statements only after determining a more likely than not probability that the un afits related to continuing operations was $838 million and $763 milion, respectively. The amount of was as follows: Flocal Years Ei 2015 763 7 (17) 174 838 enefits as interest expense and as operating, seling, general and administrative expenses, respectiv of January 31, 2015 and 2014, accrued interest related to uncertain tax positions of $57 million and 2014. solutions could reduce unrecognized tax benefits by between $50 million and $350 million, either ber of these efforts, unrecognized tax benefits could potentially be reduced beyond the provided range ederal income taxes generally for fiscal 2013 through 2015. The Company also remains subject to in ales-based and other non-income taxes. A number of these examinations are ongoing in various jurit ad, the Company has made accruals, which are reflected in the Company's Consolidated Financial S sult in a liability material to the Company's Consolidated Financial Statements. ided January 31, 2014 2015 19.412 5.244 6,310 24.65 25,662 ided January 31, 2014 2013 8.377 5.611 719 522 1,523 1.743 7,976 38 37 1479) (514) 148 (18) 0,105 7.558 of global funding structures and certain U.S. tax credits as further discussed in the "Cash and Cash Equivalents" section of y tax rate. Certain non-U.S. earnings have been indefinitely reinvested outside the U.S. and are not subject to current U.S. s as follows: 2013 36 17. (2.85 125 10. 31 2014 2,986 125 1,573 8.251 05.801) 6.450 6.295 1,541 1.827 8.763 3,313 2014 222 1.151 1.973 170 5,110 5.286 3.313 illion as of January 31, 2015 and 2014, respectively, as the Company intends to permanently reinvest these amounts outside unrecognized deferred tax liability related to those undistributed earnings is not practicable because of the complexities with il remit those earnings. n will expire, if not utilized, in various years through 2003. The remaining carryforwards have no expiration. At January 31, come in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax aluation allowance has been established and management subsequently determines that it is more likely than not that the ated primarily with net operating loss carryforwards for which management has determined it is more likely than not that the ets, changes in judgment regarding the future realization of deferred tax assets, increases from certain net operating losses that it is more likely than not that the remaining net deferred tax assets will be fully realized. certain tax positions will withstand challenge, if any, from taxing authorities. inrecognized tax benefits that would affect the Company's effective income tax rate was $763 million and sees million for ded January 31, 2014 2013 18 88 133 (117) BO 703 Bid rey. During fiscal 2015 2014 and 2015, the company recognized interest and penalty expense (benefit) related to uncertain 40 million, respectively, was recorded in the Company's Consolidated Balance Sheets. The Company did not have any ause the tax positions are sustained on audit or because the Company agrees to their disallowance. The Company is during the next twelve months. The Company does not expect any change to have a significant impact to its Consolidated come tax examinations for international income taxes for fiscal 2000 through 2015, and for US state and local income taxes idictions, including Brazil. In certain cases, the Company has received assessments from the respective taxing authorities in tatements. While the possible losses or range of possible losses associated with these matters are individually immaterial, a HUUU Financial Statements Exhibit 1.19 presents comparative balance sheets, Exhibit 1.20 presents comparative income statements, and Exhibit 1.21 presents comparative statements of cash flows for Walmart for the three fiscal years ending January 31, 2014, 2015, and 2016. Walmart prepares its financial statements in accordance with U.S. GAAP. For more detail on Walmart financial statements, or to download the fiscal 2015 Form 10-K, you can visit Walmart's investor relations page: www.stock.walmart.com/investors/default.aspx. * Exhibit 1.19 Wal-Mart Stores, Inc. Balance Sheets as of January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 521 Assets: Cash and cash equivalents $7281 $ 9,135 $ 8.705 Accounts and notes receivable-net 6.677 6,778 5,624 Inventories 44.858 45,141 44469 Prepaid expenses and other current assets 1,909 2.224 Current assets of discontinued segments 460 Current Assets $61,185 $63,278 $ 60,239 Property, plant and equipment-at cost 178,678 182,634 188,054 Accumulated depreciation (60,7711 (65,979) 171.538) Goodwill 19,510 18,102 16,695 Other assets 6,149 5.455 6131 Total Assets $204,751 $203,490 $199.581 Liabilities and Equities: Accounts payable $ 37 415 $ 38,410 $ 38,487 Current accrued expenses 18.793 19,152 19,607 Notes payable and short-term debt 7670 1.592 2,708 Current maturities of long-term debt 4412 5,078 3.296 Income taxes payable 966 1,021 Current liabilities of discontinued operations 89 Current Liabilities $ 69,345 $ 65,253 $ 64,619 Long-term debt obligations 44,559 43,495 44,030 Deferred tax liabilities-noncurrent 8,017 8,805 7,321 Redeemable noncontrolling interest 1.491 Total Liabilities $123,412 $117,553 $115,970 Common stock - Additional paid in capital 2,685 2.785 2.122 Retained earings 76,566 85,777 90,021 Accum. other comprehensive income foss) 12.996 17.168) (11.5971 Total Common Shareholders' Equity $ 76,255 $ 81,394 $ 80,546 Noncontrolling interests 5,084 4,543 3,065 Total Equity $ 81,339 $ 85,937 $ 83.611 Total Liabilities and Equities $204,751 $203,490 $199,581 Source: Wal-Mart Stores, Inc. Forms 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Exhibit 1.20 Wal-Mart Stores, Inc. Income Statements for the Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 Revenues Cost of goods sold Gross Profit Selling general, and administrative expenses Operating Profit Interest income Interest expense Income before Tax Income tax expense Income (Loss) from discontinued operations Net Income Net income attributable to noncontrolling interests Net Income Attributable to Common Shareholders Other comprehensive income items Comprehensive Income 5476.294 358,069 $118.225 91353 $ 26,872 119 (2,335) $ 24,656 8,105 144 $ 16,695 (673) $ 16,022 (2.409) $ 13,613 $ 485651 365 ORA $120,565 93,418 $ 27,147 113 2.461) $ 24,799 7,985 285 $ 17,099 1736) $ 16,363 14,172) $ 12.191 5482130 360934 $121,146 97.041 $ 24,105 81 12.548) $ 21,638 6,558 $ 15.080 (386) $ 14,694 (4429) $10.265 Source: Wal-Mart Stores, Inc. Form 10-K for the three fiscal years ended January 31, 2014, 2015, and 2016 Exhibit 1.21 Wal-Mart Stores, Inc. Statements of Cash Flows for the Three Fiscal Years Ended January 31 (amounts in millions; allow for rounding) (Integrative Case 1.1) 2014 2015 2016 $ 16,695 8,870 (279) (566) (1.667) 531 11.224 103 (144) 938 $ 23,257 727 (13,115) $ 17,099 9,173 (503) (569) (1.2291 2,678 166 1.249 (285) 785 $ 28,564 570 (12,174) $ 15,080 9,454 (672) (191 (703) 2008 (472) 1,303 Net Income Add back depreciation and amortization expenses Deferred income taxes (Increasel Decrease in accounts receivable (Increasel Decrease in inventories Increase Decrease) in accounts payable Increase (Decrease) in income taxes payable Increase (Decrease in other current liabilities (Income) Loss from discontinued segments Other operating cash flows Net Cash Flow from Operating Activities Proceeds from sales of property, plant, and equipment Property, plant, and equipment acquired Investments acquired Other investment transactions Net Cash Flow from Investing Activities Increase (Decrease in short-term borrowing Increase Decrease in long term borrowing Share repurchases-treasury stock Dividend payments Other financing activities Net Cash Flow from Financing Activities Effects of exchange rate changes on cash Net Change in Cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 1410 $ 27,389 635 (11.477) 167 $110,675) 1.235 (138) $112,526) 911 2,104 (6,683) (6.139) (982) $110,789) (442) 5 (1500) $ 7.781 $7281 479 $(11.125) (6,2881 1.270 (1015) (6.185) 28539 5(15,071) 1514) $ 1,854 $ 7.281 59,135 (4.3937 14,1121 (6.294) 12558 $116,122) 11.022 $(430) $9.135 $ 8.705 263 -113 Consolidated Statements of income (USD $ 12 Months Ended In Millions, except Per Share data, unless Jan. 31, 2015 Jan. 31, 2014 Jan. 31, 2013 otherwise specified Revenues Net sales $492,229 $473,076 $465,604 Membership and other income 3,422 3,218 3,047 Total revenues 485,651 476,294 468,651 Costs and expenses: Cost of sales 365,086 358,069 352,297 Operating selling general and administrative expenses 93,418 91,353 88,629 Operating income 27,147 26,872 27,725 Interest: Debt 2,161 2,072 1,977 Capital leases 300 272 Interest Income -119 -186 Interest, net 2,348 2,216 2,063 Income from continuing operations before Income taxes 24,799 24,656 25,662 Provision for income taxes: Current 8,504 8,519 7.976 Deferred -519 -514 -18 Total provision for Income taxes 7,985 8,105 7,958 Income from continuing operations 16,814 16,551 17,704 Income from discontinued operations, net of Income taxes 285 144 52 Consolidated net Income 17,099 16,695 17,756 Less consolidated net income attributable to noncontrolling interest -736 -673 -757 Consolidated net income attributable to Walmart $16,363 516,022 $16,999 Basie net income per common share: Basic income per common share from continuing operations attributable to Walmart $5.01 $4.87 $5.03 Basic income per common share from discontinued operations attributable to Walmart $0.06 $0.03 $0.01 Basic net income per common share attributable to Walmart $5.07 $4.90 $5.04 Diluted net Income per common share Diluted Income per common share from continuing operations attributable to Walmart $4.99 $4.85 $5.01 Diluted income per common share from discontinued operations attributable to Walmart 50.06 $0.03 $0 01 Diluted net income per common share attributable to Walmart SS.OS $4.88 $5.02 Weighted average common shares outstanding Basic 3,230 3,269 3,374 Olluted 3,243 2,23 3,389 Dividendis de ed per common share 51.92 $1.88 $1 59 Consolidated Statements of comprehensive 12 Months Ended In Millions, unless otherwise specified Jan. 31, 2015 Jan. 31, 2014 Jan. 31, 2013 Statement of Comprehensive income [Abstract] Consolidated net income $17,099 $16,695 $17,756 Less consolidated net income attributable to nonredeemable noncontrolling interest -736 -606 -684 Less consolidated net income attributable to redeemable noncontrolling interest 0 -67 -73 Consolidated net income attributable to Walmart 16,363 16,022 16,999 Other comprehensive income (loss), net of Income taxes Currency translation and other -4,179 -3,146 1,042 Derivative Instruments -470 207 136 Minimum pension liability -69 153 -166 Other comprehensive income (loss), net of Income taxes -4,718 -2,786 1,012 Less other comprehensive Income (loss) attributable to nonredeemable noncontrolling interest 546 311 -138 Less other comprehensive income (loss) attributable to redeemable noncontrolling interest -66 51 Other comprehensive income (loss) attributable to Walmart -4,172 -2,409 823 Comprehensive income, net of income taxes 12,381 13,909 18,768 Less comprehensive income attributable to nonredeemable noncontrolling interest -190 -295 -822 Less comprehensive income attributable to redeemable noncontrolling interest 0 -1 -124 Comprehensive income attributable to Walmart $12, 191 $13,613 $17,822 0 Jan. 31, 2015 Jan. 31, 2014 Consolidated Balance Sheets (USDS) In Millions, unless otherwise specified Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Current assets of discontinued operations $9,135 6,778 45,141 2,224 $7,282 6,677 44,858 1,909 0 63,278 460 61.185 177,395 -63,115 114,280 173,089 -57,725 115,364 Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital leases: Property under capital leases Less accumulated amortization Property under capital leases, net Goodwill Other assets and deferred charges Total assets Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued Income taxes Long-term debt due within one year Obligations under capital leases due within one year Current liabilities of discontinued operations 5,239 -2,864 2,375 18,102 5,671 203,706 5,589 -3,046 2,543 19,510 6,149 204,751 1,592 38,410 19,152 1,021 4,810 7,670 37,415 18,793 966 4,103 287 309 Total current liabilities Long-term debt Long-term obligations under capital leases 0 65,272 41,086 89 69,345 41,771 2,606 8,805 0 2,788 8,017 1,491 Deferred Income taxes and other Redeemable noncontrolling interest Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive Income (loss) Total Walmart shareholders' equity Nonredeemable no controlling interest 323 2,462 85,777 323 2.362 76,566 -7,168 81,394 -2,996 76,255 4,543 85.937 5,084 81,339 Total equity Total liabilities, redeemable no controlling Interest, and equity $203,706 $204,751 OYS IN -14 LTH ER htam NE 39 NO GE 2400 - LU 15 SA IL E RE RE 6 . 000 1 ET FH HET 12 Months Ended Jan. 31, 2015 Jan. 31, 2014 Jan. 31, 2013 $17,099 $16,695 $17,756 -285 16,814 -144 16,551 -52 17,704 Consolidated Statements of Cash Flows in Million, unless otherwise specified Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of Income taxes Income from continuing operations Adjustments to reconcile consoliated net Income to net cash provided by operating activities: Depreciation and amortization Deferred Income taxes Other operating activities Changes in certain assets and abilities, net of effects of acquisitions 9,173 -503 785 8,870 -279 938 8,478 -133 602 -569 -1,229 Receivables, net Inventories Accounts payable Accrued liabilities Accrued Income taxes Net cash provided by operating activities 2,678 1.249 166 -566 -1,667 531 103 -1,224 -614 -2,759 1,061 271 981 28,564 23,257 25,591 -12,174 -13,115 -12,898 570 727 532 O 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 Other investing activities Net cash used in investing activities Cash flows from financing activities: Net change in short-term borrowing Proceeds Payments of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest 671 - 192 -11,125 0 -138 -12,526 -271 -12,637 -6,288 5.174 3,904 -6,185 1,015 911 7,072 -4.968 6,139 2,754 211 -1,478 5,361 -7,600 -600 -1,844 -409 -15,071 -426 -296 -260 -10,789 -282 -132 -58 -11,946 Purchase of noncontrolling interest Other financing activities Netcash used in financing activities Effect of change rates on cash and cash equivalent Net Increase (decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year -514 442 223 1,854 -500 1,231 7,281 7,781 6,550 9,135 Supplemental disore of cash flow Information 7,201 7.781 1,169 52.433 3,641 $2.362 7,304 Taxes Income Tax Disclosure [Abstract] Income tax disclosure Taxes Income from Continuing Operations The components of income from continuing operations before income t (Amounts in million US Non-US Total income from continuing operations before Income taxes A summary of the provision for income taxes is as follows: Amounts on millions Current U.S. federal U.S. State and local International Total current tax provision Deferred: u. Sederal U.S. state and local Intematon Total deferred tax expense benefit Total provision for Income taxes Effective Income Tax Rate Reconciliation The Company's effective income tax rate is typically lower than the US the Company's significant accounting policies in Note 1. The Company Income tax. A reconciliation of the significant differences between the U (1.5 U.S. statutory tax rate 35 US state income taxes, net of federal income tax ta benefit Income taxed outside the US 2.7 Not impact of repatriated international oaming Othernet 10.4 Effective Income tax rate 322 Deferred Taxes The significant components of the Company's deferred tax account bal (Amounts in millions) Deferred tax asset: Loss and tax credit carryforwards Accrued liabilities Share-based compensation Other Total deferred tax assets Valuation allowances Deferred tax assets, not of valuation allowance Deferred tax liabilities: Property and equipment Inventories Other Total deferred tax liabilities Not deferred tax liabilities The deferred taxes are classified as follows in the Company's Consolidi (Amount in milione) Balance Sheet classification: Assets Prepaid expenses and other Other assets and deferred charges Asset subtotals Llabilities: Accrued labilities Deferred income taxes and other Liability subtotale Net deferred tax liabilities Unremitted Earnings U.S. Income taxes have not been provided on accumulated but undistril of the U.S. However, if any portion were to be distributed, the related U. its hypothetical calculation. The Company provides deferred or current i Net Operating Losses, Tax Credit Carryforwards and Valuation Allowan At January 31, 2015, the Company had net operating loss and capital lc 2016, the Company had foreign tax credit carryforwards of $2.0 billion, The recoverability of these future tax deductions and credits is evaluate planning strategies. To the extent management does not consider it mo deferred tax assets will be realized, the valuation allowance is released. As of January 31, 2015 and 2014, the Company had valuation allowanc deferred tax asset will not be realized. The $0.3 billion net decrease in t and deductible temporary differences arising in fiscal 2015, decreases Uncertain Tax Positions The benefits of uncertain tax positions are recorded in the Company's As of January 31, 2015 and 2014, the amount of unrecognized tax bent January 31, 2015 and 2014, respectively. A reconciliation of unrecognized tax benefits from continuing operations Amounts in millions Unrecognized tax benefits, beginning of year Increases related to prior year tax positions Decreases mutated to pror your tax positions Increases related to current year tax positions Settlements during the period Lapre in statutes of limitations Unrecognized tax benefits, and of year The Company classifies interest and penalties related to uncertain taxt tax positions of $18 million, $(7) million and $2 million, respectively. As accrued penalties recorded for income taxes as of January 31, 2015 or During the next twelve months, it is reasonably possible that tax audit re focused on resolving tax audits as expeditiously as possible. As a result Financial Statements. The Company remains subject to income tax examinations for its U.S. generally for the fiscal years ended 2006 through 2015 Other Taxes The Company is subject to tax examinations for payroll, value added, st connection with these examinations. Where a probable loss has occur group of related matters, if decided adversely to the Company, could re Jan. 31, 2015 axes are as follows: Fiscal Years El 2015 18.610 5,180 24,799 Fiscal Years Er 2015 6,185 810 1,529 8,504 (387 (55 T7 (519) 7,885 statutory tax rate primarily because of benefits from lower-taxed global operations, including the use non-US. Income is generally subject to local country tax rates that are below the 35% U.S. statutor S. statutory tax rate and the effective income tax rate on pretax income from continuing operations i 2015 Fiscal Yoars Ended January 31, 2014 35 2 % (2.8) (1.4) 0.1 32.9 % % y% 55 ances are as follows: January 31, 2015 3.255 3,305 184 1.119 7,953 (1504) 6,449 5,972 1,825 1.818 9.415 2.968 ated Balance Sheets: January 31, 2015 728 1,033 1,761 4,671 4727 2.906 buted earnings of the Company's international subsidiaries of approximately $23.3 billion and $21.46 S, tax liability may be reduced by foreign income taxes paid on those earnings. Determination of the ncome taxes on earnings of international subsidiaries in the period that the Company determines it cos iss carryforwards totaling approximately $6.6 billion. Of these carryforwards, approximately $2.9 billio which will expire in various years through 2025, if not utilized. d by assessing the adequacy of future expected taxable income from all sources, including taxable ir re likely than not that a deferred tax asset will be realized, a valuation allowance is established. If av es recorded of approximately $1.5 billion and $1.8 billion, respectively, on deferred tax assets associ he valuation allowance during fiscal 2015 related to releases arising from the use of deferred tax ass due to operating loss expirations and fluctuations in currency exchange rates, Management believes Consolidated Financial Statements only after determining a more likely than not probability that the un afits related to continuing operations was $838 million and $763 milion, respectively. The amount of was as follows: Flocal Years Ei 2015 763 7 (17) 174 838 enefits as interest expense and as operating, seling, general and administrative expenses, respectiv of January 31, 2015 and 2014, accrued interest related to uncertain tax positions of $57 million and 2014. solutions could reduce unrecognized tax benefits by between $50 million and $350 million, either ber of these efforts, unrecognized tax benefits could potentially be reduced beyond the provided range ederal income taxes generally for fiscal 2013 through 2015. The Company also remains subject to in ales-based and other non-income taxes. A number of these examinations are ongoing in various jurit ad, the Company has made accruals, which are reflected in the Company's Consolidated Financial S sult in a liability material to the Company's Consolidated Financial Statements. ided January 31, 2014 2015 19.412 5.244 6,310 24.65 25,662 ided January 31, 2014 2013 8.377 5.611 719 522 1,523 1.743 7,976 38 37 1479) (514) 148 (18) 0,105 7.558 of global funding structures and certain U.S. tax credits as further discussed in the "Cash and Cash Equivalents" section of y tax rate. Certain non-U.S. earnings have been indefinitely reinvested outside the U.S. and are not subject to current U.S. s as follows: 2013 36 17. (2.85 125 10. 31 2014 2,986 125 1,573 8.251 05.801) 6.450 6.295 1,541 1.827 8.763 3,313 2014 222 1.151 1.973 170 5,110 5.286 3.313 illion as of January 31, 2015 and 2014, respectively, as the Company intends to permanently reinvest these amounts outside unrecognized deferred tax liability related to those undistributed earnings is not practicable because of the complexities with il remit those earnings. n will expire, if not utilized, in various years through 2003. The remaining carryforwards have no expiration. At January 31, come in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax aluation allowance has been established and management subsequently determines that it is more likely than not that the ated primarily with net operating loss carryforwards for which management has determined it is more likely than not that the ets, changes in judgment regarding the future realization of deferred tax assets, increases from certain net operating losses that it is more likely than not that the remaining net deferred tax assets will be fully realized. certain tax positions will withstand challenge, if any, from taxing authorities. inrecognized tax benefits that would affect the Company's effective income tax rate was $763 million and sees million for ded January 31, 2014 2013 18 88 133 (117) BO 703 Bid rey. During fiscal 2015 2014 and 2015, the company recognized interest and penalty expense (benefit) related to uncertain 40 million, respectively, was recorded in the Company's Consolidated Balance Sheets. The Company did not have any ause the tax positions are sustained on audit or because the Company agrees to their disallowance. The Company is during the next twelve months. The Company does not expect any change to have a significant impact to its Consolidated come tax examinations for international income taxes for fiscal 2000 through 2015, and for US state and local income taxes idictions, including Brazil. In certain cases, the Company has received assessments from the respective taxing authorities in tatements. While the possible losses or range of possible losses associated with these matters are individually immaterial, a
