I need someone to help me this attached assignment

NOTE.the format the analysis have to be in right? I have attached a picture of horizontal analysis of the balance sheet

Objective: to obtain hands-on exposure with analyzing financial statements to determine the financial health of a company. REQUIRED 1. You are required to compare and contrast the financial health of any two of the paired companies and make a recommendation on which company you would invest in and why. Clear guidance is provided below. NOTE Pages 6-9 act as additional guidance and is a duplicate of some of the steps 1 thru 6: Group 1 2 3 4 5 6 7 8 9 2. Name Target Corporation Wal-Mart Stores, Inc. American Home Products Corporation Home Depot, Inc. (The) AT&T Inc. Verizon Communications Inc. Procter & Gamble Company (The) JOHNSON & JOHNSON Exxon Mobil Corporation ROYAL DUTCH SHELL PLC Polo Ralph Lauren Corporation Liz Claiborne, Inc. Nike Under Armour, Inc. REEBOK INTL LTD Adidas Citigroup, Inc. HSBC Holdings, plc. Symbol TGT WMT WYE HD T VZ PG JNJ XOM RDS/A RL LIZ NKE UARM RBK ADDYY C HBC Download the three (3) most recent 10-K financial statements for both companies. You need three (3) years of data. Download the most recent 10-Q financial statements for both companies. In addition, download the 10-Q for the companies for the same period one-year prior. For example, if the most recent 10-Q is 3rd Quarter of 2016, you also need 10-Q for 3rd Quarter of 2015. Financial statements (10-K & 10-Q) MUST be accessed through the SEC website. a) Web address: http://www.sec.gov/; a) go to company filings; b) enter ticker symbol or company name; example SBUX c) click on the CIK to view company filings d) in \"filing type\" insert 10-K or 10-Q e) click on interactive data (you can then download the excel file with all the financial statements and description of the company's operations). 1. Perform Horizontal Analysis for the most recent 2 years on the selected companies Balance Sheet and Income Statement. (Note - As stated in #1 above, you will need 3 years financials to perform this step) 2. Perform a Trend (Horizontal) Analysis for the 3 years or more on the selected companies Balance Sheet and Income Statement. Perform similar steps to the bullet points in Step # 2 above, and compare to the Horizontal Analysis to ACC 102 FINANCIAL STATEMENT ANALYSIS PROJECT 3. Perform a Vertical Analysis for 2 years on the selected companies Balance Sheet and Income Statement. Prepare Financial Ratio Analysis Perform 2 years of comprehensive financial ratio analysis for the companies selected - Liquidity, Profitability and Financial Risk. The ratios should serve as a basis to determine the financial health of the company. (Note - As stated in #1 above, you will need 3 years financials for some ratios to perform this step) Write your analysis and interpretation of the financial ratios calculated (Definitions are not needed). Profitability Ratios Liquidity Ratios Financial Risk Ratios What conclusions can be drawn from each ratio analysis Profitability Ratios Liquidity Ratios Financial Risk Ratios 2 ACC 102 FINANCIAL STATEMENT ANALYSIS PROJECT RATIOS Financial Statement Analysis A. Profitability - the ability to earn satisfactory income (profit) B. Liquidity - the ability to pay bills when due and meet unexpected cash needs. C. Financial Risk - ability to survive in good and bad economic times. The aim is to detect early signs of financial difficulty. D. Effective management of operating assets - ability to manage operating assets and liabilities in the operating cycle. Operating cycle - the time it takes from acquiring inventory, selling it and then collect for it. Acquire inventory on credit sell inventory on credit. Collect the outstanding receivable and pay the outstanding payables. E. Supplemental- Liquidity and operating asset MGT F. Market strength - How does investors view the potential return and the risk of owning the company's stock. A. Profitability Ratios 1. Profit Margin = NI/Net Revenues This ratio shows the amount of income that was generated by each $1 of sales. 2. Asset turnover = Net Revenues/Ave total assets This ratio shows the amount of revenue generated by each $1 of assets. 3. Return on Assets = NI/Ave Total assets This ratio shows the amount of income generated by each $1 of assets. PM X Assets T/O = ROA B. Liquidity Ratios 1. Cash flow yield = Net cash flows from operating activities/Net Income-. This ratio shows the amount of operating cash generated by each $1 of net income. 2. Cash flows to sales = Net cash flows from operating activitieset revenues This ratio shows the amount of operating cash generated by each $1 of sales. 3. Cash flows to assets = Net cash from operating activities/Ave total assetsThis ratio shows the amount of operating cash generated by each $1 assets. 4. Free Cash flows - How much cash is left over after providing for commitments of net capital expenditures and dividends = Net CF from operating activities net capital expenditures - dividend C. Financial Risk Ratios 1. Debt to equity = Tot liabilities/Stockholders' equity This ratio shows the company's level of financial risk. A = L + OE 2. Return on equity = NI/AVG SHE This ratio shows the amount of NI generated for every $1 invested by owners. 3. Interest coverage = EBIT/ Interest Expense This ratio shows the amount of times income covered interest expense? D. Operating Asset Management Ratios 3 ACC 102 FINANCIAL STATEMENT ANALYSIS PROJECT 1. Inventory Turnover = COGS/Ave Inventory This ratio shows the amount of times the company sold its inventory during the accounting period. 2. Days inventory on hand- # of days in acct period/Inventory Turnover This ratio shows the number of days it took the company to sell its inventory. 3. Receivable Turnover = Net sales/Ave Account Receivable This ratio shows the number of times the company collected its Accounts Receivable during the accounting period. 4. Days sales Uncollected = # of days in acct period/Account receivable Turnover This ratio shows the number of days it takes the company to collect its accounts receivable. 5. Payable Turnover = COGS vg inventory/Avg accounts payable This ratio shows the number of times the company paid its account payable during the accounting period. 6. Days Payable = Days in the accounting period/Payable Turnover This ratio shows the number of days did it take the company to pay its Account payable. Financing period- the number of days of financing needed to pay payables = (# of days needed to sell inventory + # of days needed to collect rec) less the # of days needed to pay payables. = (days inventory on hand +days sales uncollected) - days payable E. Supplemental financial ratios for assessing liquidity and operate asset mgt 1. F. Current ratios = CA/CL - How many times did total CA cover CL 2. Quick ratios = Cash +MS+AR/CL - How many times did current financial assets cover CL Market Strength ratios 1. Price/Earnings ratio =MKT price per share/ EPS This ratio shows the value that the market placed on the company's earning 2. Dividend yield = Dividends per share/ market price per share This ratio shows the rate of return from dividend on each share of stock. NOTE the format the analysis have to be in right? Im attaching a example horizontal analysis of the balance sheet 4 \fANALYSIS OF WALMART STORES INC.'S INCOME STATEM Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions 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 before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Basic net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share: Diluted net income per common share attributable to Walmart Weighted-average common shares outstanding: Basic Diluted Dividends declared per common share ANALYSIS OF WALMART STORES INC.'S BALANCE SHEE Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other assets and deferred charges Total assets Current liabilities: Short-term borrowings Accounts payable Dividends payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity NC.'S INCOME STATEMENT FOR QUARTER 3 2016 3 Months Ended Oct. 31, 2016 Oct. 31, 2015 Horizontal Analysis Increase or (Decrease) year 2016 Amount Percent Vertical Analysis 2016 2015 Percent Percent $ 117,176 $ 116,598 $ 578 0.50% 1,003 810 100.00% 100.00% $ 193 23.83% 118,179 117,408 0.86% 0.69% $ 771 0.66% 100.86% 100.69% 87,484 87,446 $ 38 0.04% 25,576 24,248 74.66% 75.00% $ 1,328 5.48% 5,119 5,714 21.83% 20.80% $ (595) -10.41% 4.37% 4.90% 528 509 $ 19 3.73% 81 64 0.45% 0.44% $ 17 26.56% (24) (21) 0.07% 0.05% $ (3) 14.29% 585 552 -0.02% -0.02% $ 33 5.98% 4,534 5,162 0.50% 0.47% $ (628) -12.17% 1,332 1,748 3.87% 4.43% $ (416) -23.80% 3,202 3,414 1.14% 1.50% $ (212) -6.21% (168) (110) 2.73% 2.93% $ (58) 52.73% $ 3,034 $ 3,304 -0.14% -0.09% $ (270) -8.17% 2.59% 2.83% $ 0.98 $ 1.03 $ (0.05) -4.85% 0.00% 0.00% $ 0.98 $ 1.03 $ (0.05) -4.85% 0.00% 0.00% 3,089 3,210 (121.0) -3.77% 3,100 3,219 (119.0) -3.70% $0 $0 $0 0.00% 0.00% 0.00% INC.'S BALANCE SHEET AS AT QUARTER 3 2016 Oct. 31, 2016 Oct. 31, 2015 Horizontal Analysis Increase or (Decrease) year 2016 Vertical Analysis 2016 2015 Oct. 31, 2016 Oct. 31, 2015 Amount Percent Percent Percent $ 5,939 $ 6,990 $ (1,051) -15.04% 5,344 5,012 2.87% 3.41% $ 332 6.62% 49,822 50,706 2.58% 2.44% $ (884) -1.74% 2,296 2,404 24.09% 24.72% $ (108) -4.49% 63,401 65,112 1.11% 1.17% $ (1,711) -2.63% 30.65% 31.74% 179,667 176,660 $ 3,007 1.70% (70,991) (65,825) 86.86% 86.12% $ (5,166) 7.85% 108,676 110,835 -34.32% -32.09% $ (2,159) -1.95% 52.54% 54.03% 11,482 10,948 $ 534 4.88% (5,070) (4,827) 5.55% 5.34% $ (243) 5.03% 6,412 6,121 -2.45% -2.35% $ 291 4.75% 17,792 17,051 3.10% 2.98% $ 741 4.35% 10,576 6,025 8.60% 8.31% $ 4,551 75.54% 206,857 205,144 5.11% 2.94% $ 1,713 0.84% 100.00% 100.00% 5,082 4,960 $ 122 2.46% 42,990 40,553 2.46% 2.42% $ 2,437 6.01% 1,541 1,589 20.78% 19.77% $ (48) -3.02% 21,243 19,499 0.74% 0.77% $ 1,744 8.94% 459 587 10.27% 9.51% $ (128) -21.81% 2,266 2,746 0.22% 0.29% $ (480) -17.48% 549 558 1.10% 1.34% $ (9) -1.61% 74,130 70,492 0.27% 0.27% $ 3,638 5.16% 36,178 38,617 35.84% 34.36% $ (2,439) -6.32% 5,930 5,581 17.49% 18.82% $ 349 6.25% 10,144 7,824 2.87% 2.72% $ 2,320 29.65% 4.90% 3.81% 308 321 $ (13) -4.05% 2,084 2,006 0.15% 0.16% $ 78 3.89% 87,636 87,903 1.01% 0.98% $ (267) -0.30% (12,335) (10,659) 42.37% 42.85% $ (1,676) 15.72% -5.96% -5.20% 77,693 79,571 $ (1,878) -2.36% 2,782 3,059 37.56% 38.79% $ (277) -9.06% 80,475 82,630 1.34% 1.49% $ (2,155) -2.61% $ 206,857 $ 205,144 38.90% 40.28% $ 1,713 0.84% 100.00% 100.00% ANALYSIS OF WALMART STORES INC.'S INCOME STATE Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions 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 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 ANALYSIS OF WALMART STORES INC.'S BALANCE SH Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other assets and deferred charges Total assets Current liabilities: Short-term borrowings Accounts payable Dividends payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity C.'S INCOME STATEMENT FOR QUARTER 3 2016 Horizontal Analysis 3 Months Ended Oct. 31, 2015 Vertical Analysis Increase or (Decrease) in 2015 Oct. 31, 2014 Amount Percent $ 116,598 $ 118,076 $ (1,478) -1.25% 810 925 $ (115) -12.43% 117,408 119,001 $ (1,593) -1.34% 87,446 89,247 $ (1,801) -2.02% 24,248 23,489 $ 759 3.23% 5,714 6,265 $ (551) -8.79% 509 561 $ (52) -9.27% 64 115 $ (51) -44.35% (21) (20) $ (1) 5.00% 552 656 $ (104) -15.85% 5,162 5,609 $ (447) -7.97% 1,748 1,783 $ (35) -1.96% 3,414 3,826 $ (412) -10.77% 0 0 $0 0.00% 3,414 3,826 $ (412) -10.77% (110) (115) $5 -4.35% $ 3,304 $ 3,711 $ (407) -10.97% $ 1.03 $ 1.15 $ (0) -10.43% 0 0 $0 0.00% 1.03 1.15 $ (0) -10.43% 1.03 1.15 $ (0.12) -10.43% 0 0 $0 0.00% $ 1.03 $ 1.15 $ (0.12) -10.43% 3,210 3,229 (19) -0.59% 3,219 3,240 (21) -0.65% $0 $0 $0 0.00% 2015 2014 Percent Percent 100.00% 100.00% 0.69% 0.78% 100.69% 100.78% 75.00% 75.58% 20.80% 19.89% 4.90% 5.31% 0.44% 0.48% 0.05% 0.10% -0.02% -0.02% 0.47% 0.56% 4.43% 4.75% 1.50% 1.51% 2.93% 3.24% 0.00% 0.00% 2.93% 3.24% -0.09% -0.10% 2.83% 3.14% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% NC.'S BALANCE SHEET AS AT QUARTER 3 2016 Oct. 31, 2015 Oct. 31, 2014 Horizontal Analysis Increase or (Decrease) in 2015 Amount Percent Vertical Analysis 2015 2014 Percent Percent $ 6,990 $ 6,718 $ 272 4.05% 5,012 6,091 3.41% 3.23% $ (1,079) -17.71% 50,706 51,501 2.44% 2.93% $ (795) -1.54% 2,404 1,531 24.72% 24.80% $ 873 57.02% 65,112 65,841 1.17% 0.74% $ (729) -1.11% 31.74% 31.70% 176,660 177,494 $ (834) -0.47% (65,825) (62,519) 86.12% 85.47% $ (3,306) 5.29% 110,835 114,975 -32.09% -30.11% $ (4,140) -3.60% 54.03% 55.36% 10,948 5,632 $ 5,316 94.39% (4,827) (3,115) 5.34% 2.71% $ (1,712) 54.96% 6,121 2,517 -2.35% -1.50% $ 3,604 143.19% 17,051 18,888 2.98% 1.21% $ (1,837) -9.73% 6,025 5,447 8.31% 9.10% $ 578 10.61% 205,144 207,668 2.94% 2.62% $ (2,524) -1.22% 100.00% 100.00% 4,960 6,019 $ (1,059) -17.59% 40,553 39,656 2.42% 2.90% $ 897 2.26% 1,589 1,553 19.77% 19.10% $ 36 2.32% 19,499 18,773 0.77% 0.75% $ 726 3.87% 587 383 9.51% 9.04% $ 204 53.26% 2,746 4,854 0.29% 0.18% $ (2,108) -43.43% 558 302 1.34% 2.34% $ 256 84.77% 70,492 71,540 0.27% 0.15% $ (1,048) -1.46% 38,617 41,519 34.36% 34.45% $ (2,902) -6.99% 5,581 2,767 18.82% 19.99% $ 2,814 101.70% $ 7,824 $ 7,789 2.72% 1.33% $ 35 0.45% 3.81% 3.75% $ 321 $ 323 $ (2) -0.62% 2,006 2,223 0.16% 0.16% $ (217) -9.76% 87,903 80,814 0.98% 1.07% $ 7,089 8.77% 42.85% 38.91% (10,659) (4,251) $ (6,408) 150.74% 79,571 79,109 -5.20% -2.05% $ 462 0.58% 3,059 4,944 38.79% 38.09% $ (1,885) -38.13% 82,630 84,053 1.49% 2.38% $ (1,423) -1.69% $ 205,144 $ 207,668 40.28% 40.47% $ (2,524) -1.22% 100.00% 100.00% ANALYSIS OF TARGET CORPORATION'S INCOME STATEMENT FOR QU 3 Months Ended Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions Oct. 29, 2016 Income Statement [Abstract] Sales $ 16,441 Cost of sales 11,471 Gross margin 4,970 Selling, general and administrative expenses 3,339 Depreciation and amortization Earnings from continuing operations before interest expense and income taxes 570 1,061 Net interest expense 142 Earnings from continuing operations before income taxes 919 Provision for income taxes 311 Net earnings from continuing operations 608 Discontinued operations, net of tax Net earnings 0 $ 608 Basic earnings per share Continuing operations (in dollars per share) Discontinued operations (in dollars per share) Net earnings per share (in dollars per share) $ 1.07 0 1.07 Diluted earnings per share Continuing operations (in dollars per share) Discontinued operations (in dollars per share) Net earnings per share (in dollars per share) 1.06 0 $ 1.06 Weighted average common shares outstanding Basic (in shares) Dilutive impact of share-based awards (in shares) Diluted (in shares) Antidilutive shares (in shares) Dividends declared per share (in dollars per share) 570.1 4.7 574.8 0.2 $ 0.6 ANALYSIS OF TARGET CORPORATION'S BALANCE SHEET AS AT QUA Consolidated Statements of Financial Position - USD ($) $ in Millions Oct. 29, 2016 Assets Cash and cash equivalents, including short term investments of $0, $3,008 and $1,154 $ 1,231 Inventory 10,057 Current assets of discontinued operations 62 Other current assets 1,492 Total current assets 12,842 Property and equipment Land Buildings and improvements 6,106 27,518 Fixtures and equipment 5,467 Computer hardware and software 2,538 Construction-in-progress Accumulated depreciation Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets 219 (16,946) 24,902 17 842 38,603 Liabilities and shareholders' investment Accounts payable 8,250 Accrued and other current liabilities 3,662 Current portion of long-term debt and other borrowings Current liabilities of discontinued operations 729 1 Total current liabilities 12,642 Long-term debt and other borrowings 12,097 Deferred income taxes Noncurrent liabilities of discontinued operations 920 18 Other noncurrent liabilities 1,857 Total noncurrent liabilities 14,892 Shareholders' investment Common stock 47 Additional paid-in capital 5,598 Retained earnings 6,031 Accumulated other comprehensive loss Pension and other benefit liabilities Currency translation adjustment and cash flow hedges Total shareholders' investment Total liabilities and shareholders' investment (571) (36) 11,069 $ 38,603 COME STATEMENT FOR QUARTER 3 2016 Horizontal Analysis Increase or (Decrease) in 2016 3 Months Ended Oct. 31, 2015 Amount Percent Vertical Analysis 2016 2015 Percent Percent $ 17,613 $ (1,172) -6.65% 12,440 100.00% 100.00% $ (969) -7.79% 5,173 69.77% 70.63% $ (203) -3.92% 3,736 30.23% 29.37% $ (397) -10.63% 561 20.31% 21.21% $9 1.60% 876 3.47% 3.19% $ 185 21.12% 151 6.45% 4.97% $ (9) -5.96% 725 0.86% 0.86% $ 194 26.76% 249 5.59% 4.12% $ 62 24.90% 476 1.89% 1.41% $ 132 27.73% 73 3.70% 2.70% $ (73) -100.00% $ 549 0.00% 0.41% $ 59 10.75% 3.70% 3.12% 0.00% $ 0.76 $ 0.31 40.79% 0.12 0.01% 0.00% $ (0) -100.00% 0.88 0.00% 0.00% $ 0.19 21.59% 0.01% 0.00% 0.76 $0 39.47% 0.11 0.01% 0.00% $ (0.11) -100.00% $ 0.87 0.00% 0.00% $ 0.19 21.84% 0.01% 0.00% 623.7 -53.6 -8.59% 5.1 -0.4 -7.84% 628.8 -54 -8.59% 0 0.2 0.00% $ 0.56 $ 0.04 7.14% BALANCE SHEET AS AT QUARTER 3 2016 Horizontal Analysis Oct. 31, 2015 Vertical Analysis Increase or (Decrease) in 2016 Amount Percent 2016 Percent 2015 Percent $ 1,977 $ (746) -37.73% 10,374 3.19% 4.77% $ (317) -3.06% 399 26.05% 25.03% $ (337) -84.46% 2,194 0.16% 0.96% $ (702) -32.00% 14,944 3.86% 5.29% $ (2,102) -14.07% 33.27% 36.05% 6,118 $ (12) -0.20% 26,912 15.82% 14.76% $ 606 2.25% 5,283 71.28% 64.92% $ 184 3.48% 2,652 14.16% 12.75% $ (114) -4.30% 428 6.57% 6.40% $ (209) -48.83% (15,921) 0.57% 1.03% $ (1,025) 6.44% 25,472 -43.90% -38.41% $ (570) -2.24% 94 64.51% 61.45% $ (77) -81.91% 941 0.04% 0.23% $ (99) -10.52% 41,451 2.18% 2.27% $ (2,848) -6.87% 100.00% 100.00% 8,904 $ (654) -7.35% 3,868 21.37% 21.48% $ (206) -5.33% 825 9.49% 9.33% $ (96) -11.64% 261 1.89% 1.99% $ (260) -99.62% 13,858 0.00% 0.63% $ (1,216) -8.77% 11,887 32.75% 33.43% $ 210 1.77% 1,135 31.34% 28.68% $ (215) -18.94% 36 2.38% 2.74% $ (18) -50.00% 1,279 0.05% 0.09% $ 578 45.19% 14,337 4.81% 3.09% $ 555 3.87% 38.58% 34.59% 52 $ (5) -9.62% 0.12% 0.13% 5,314 $ 284 5.34% 8,359 14.50% 12.82% $ (2,328) -27.85% 15.62% 20.17% (431) $ (140) 32.48% (38) -1.48% -1.04% $2 -5.26% 13,256 -0.09% -0.09% $ (2,187) -16.50% $ 41,451 28.67% 31.98% $ (2,848) -6.87% 100.00% 100.00% ANALYSIS OF TARGET CORPORATION'S INCOME STATEMENT Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions Income Statement [Abstract] Sales Cost of sales Selling, general and administrative expenses Depreciation and amortization Earnings from continuing operations before interest expense and income taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings Basic earnings / (loss) per share Continuing operations (in dollars per share) Discontinued operations (in dollars per share) Net earnings per share (in dollars per share) Diluted earnings / (loss) per share Continuing operations (in dollars per share) Discontinued operations (in dollars per share) Net earnings per share (in dollars per share) Weighted average common shares outstanding Basic (in shares) Dilutive impact of share-based awards (in shares) Diluted (in shares) Antidilutive shares (in shares) ANALYSIS OF TARGET CORPORATION'S BALANCE SHEET AS Consolidated Statements of Financial Position - USD ($) $ in Millions Assets Cash and cash equivalents, including short term investments of $1,154, $1,520 and $4 Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilities Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Pension and other benefit liabilities Currency translation adjustment and cash flow hedges Total shareholders' investment Total liabilities and shareholders' investment T CORPORATION'S INCOME STATEMENT FOR QUARTER 3 2015 Horizontal Analysis Increase or (Decrease) in 2015 3 Months Ended Oct. 31, 2015 Nov. 01, 2014 Amount Vertical Analysis 2015 Percent Percent $ 17,613 $ 17,254 $ 359 2.08% 100.00% 12,440 12,171 $ 269 2.21% 70.63% 3,736 3,644 $ 92 2.52% 21.21% 561 535 $ 26 4.86% 3.19% 876 904 $ (28) -3.10% 4.97% 151 146 $5 3.42% 0.86% 725 758 $ (33) -4.35% 4.12% 249 232 $ 17 7.33% 1.41% 476 526 $ (50) -9.51% 2.70% 73 (174) $ 247 -141.95% 0.41% $ 549 $ 352 $ 197 55.97% 3.12% $ 0.76 $ 0.83 $ (0.07) -8.43% 0.00% 0.12 (0.28) $ 0.40 -142.86% 0.00% 0.88 0.55 $ 0.33 60.00% 0.00% 0.76 0.82 $ (0.06) -7.32% 0.00% 0.11 (0.27) $ 0.38 -140.74% 0.00% $ 0.87 $ 0.55 $ 0.32 58.18% 0.00% 623.7 634 -10.3 -1.62% 5.1 5.6 -0.5 -8.93% 628.8 639.6 -10.8 -1.69% 0 2.3 -2.3 -100.00% GET CORPORATION'S BALANCE SHEET AS AT QUARTER 3 2015 Oct. 31, 2015 $ 1,977 Nov. 01, 2014 $ 718 Horizontal Analysis Increase or (Decrease) in 2015 Amount Percent $ 1,259 175.35% Vertical Analysis 2015 Percent 4.74% 10,374 9,957 $ 417 4.19% 24.88% 451 808 $ (357) -44.18% 1.08% 2,402 2,355 $ 47 2.00% 5.76% 15,204 13,838 $ 1,366 9.87% 36.46% 6,118 6,111 $7 0.11% 14.67% 26,912 26,439 $ 473 1.79% 64.54% 5,283 5,247 $ 36 0.69% 12.67% 2,652 2,437 $ 215 8.82% 6.36% 428 440 $ (12) -2.73% 1.03% (15,921) (14,641) $ (1,280) 8.74% -38.18% 25,472 26,033 $ (561) -2.15% 61.09% 42 5,540 $ (5,498) -99.24% 0.10% 978 1,050 $ (72) -6.86% 2.35% 41,696 46,461 $ (4,765) -10.26% 100.00% 8,904 8,839 $ 65 0.74% 21.35% 3,868 3,697 $ 171 4.63% 9.28% 825 483 $ 342 70.81% 1.98% 261 506 $ (245) -48.42% 0.63% 13,858 13,525 $ 333 2.46% 33.24% 11,951 12,623 $ (672) -5.32% 28.66% 1,316 1,195 $ 121 10.13% 3.16% 36 1,292 $ (1,256) -97.21% 0.09% 1,279 1,453 $ (174) -11.98% 3.07% 14,582 16,563 $ (1,981) -11.96% 34.97% 52 53 $ (1) -1.89% 0.12% 5,314 4,612 $ 702 15.22% 12.74% 8,359 12,631 $ (4,272) -33.82% 20.05% (431) (401) $ (30) 7.48% -1.03% (38) (522) $ 484 -92.72% -0.09% 13,256 16,373 $ (3,117) -19.04% 31.79% $ 41,696 $ 46,461 $ (4,765) -10.26% 100.00% Vertical Analysis 2014 Percent 100.00% 70.54% 21.12% 3.10% 5.24% 0.85% 4.39% 1.34% 3.05% -1.01% 2.04% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Vertical Analysis 2014 Percent 1.55% 21.43% 1.74% 5.07% 29.78% 13.15% 56.91% 11.29% 5.25% 0.95% -31.51% 56.03% 11.92% 2.26% 100.00% 19.02% 7.96% 1.04% 1.09% 29.11% 27.17% 2.57% 2.78% 3.13% 35.65% 0.11% 9.93% 27.19% -0.86% -1.12% 35.24% 100.00% Profitability Ratios 1. Profit Margin Profit Margin 2016 = 3,202 million/117,176 million = 2.73% Profit Margin 2015 = 3,414 million/116,598 million = 2.93% The profit margin for Walmart Stores Inc. reduced marginally from 2.93% in 2015 to 2.73% in 2016. 2. Asset Turnover Asset Turnover 2016 = 117,176 million/206,857 million = 56.65% Asset Turnover 2015 = 116,598 million/205,144 million = 56.84% The Asset turnover for Walmart Stores Inc. reduced marginally from 56.84% in 2015 to 56.65% in 2016. 3. Return on Assets Return on Assets 2016 = 3,202 million/206,857 million = 1.55% Return on Assets 2015 = 3,414 million/205,144 million = 1.66% The Return on Assets for Walmart Stores Inc. reduced marginally from 1.66% in 2015 to 1.55% in 2016. Liquidity Ratios 1. Cash Flow Yield Cash Flow Yield 2016 = 19,644 million/3,202 million = 6.13 times Cash Flow Yield 2015 = 15,005 million/3,414 million = 4.40 times The Cash Flow Yield for Walmart Stores Inc. improved marginally from $4.40 per $1 of net income in 2015 to $6.13 p 2. Cash Flow to Sales Cash Flow to Sales 2016 = 19,644 million/117,176 million = 0.17 times Cash Flow to Sales 2015 = 15,005 million/116,598 million = 0.13 times The Cash Flow to Sales for Walmart Stores Inc. improved marginally from $0.13 per $1 of net revenues in 2015 to $ 3. Cash Flow to Assets Cash Flow to Assets 2016 = 19,644 million/206,857 million = 0.095 times Cash Flow to Assets 2015 = 15,005 million/205,144 million = 0.073 times The Cash Flow to Sales for Walmart Stores Inc. improved marginally from $0.073 per $1 of total assets in 2015 to $0 4. Free Cash Flow Free Cash Flow 2016 = 19,644 million - 11,050 million - 4,682 million = $3,912 million Free Cash Flow 2015 = 15,005 million - 7,567 million - 4,728 million = $2,710 million The Free Cash flow of Walmart Stores Inc. improved marginally from $2,710 million in 2015 to $3,912 million in 201 Financial Risk Ratios 1. Debt to Equity Debt to Equity 2016 = 126,382 million/80,475 million = 1.57 times Debt to Equity 2015 = 122,514 million/82,630 million = 1.48 times The Debt to equity ratio for Walmart Stores Inc. deteriorated marginally from 1.48 times in 2015 to 1.57 in 2016. Th 2. Return on Equity Return on Equity 2016 = 3,202 million/80,475 million = 3.98% Return on Equity 2015 = 3,414 million/82,630 million = 4.13% The return on equity for Walmart Stores Inc. reduced marginally from 4.13% in 2015 to 3.98% in 2016. 3. Interest Coverage Interest coverage 2016 = 5,119 million/585 million Interest Coverage 2015 = 5,714 million/552 million = 8.75 times = 10.35 times The interest coverage for Walmart Stores Inc. reduced marginally from 10.35 times in 2015 to 8.75 times in 2016. 73% in 2016. 56.65% in 2016. o 1.55% in 2016. net income in 2015 to $6.13 per $1 of net income in 2016. 1 of net revenues in 2015 to $0.17 per $1 of net revenues in 2016. $1 of total assets in 2015 to $0.095 per $1 of total assets in 2016. 2015 to $3,912 million in 2016. es in 2015 to 1.57 in 2016. This has put Walmart at more risk of insolvency in 2016 than in 2015 o 3.98% in 2016. 2015 to 8.75 times in 2016. Profitability Ratios 1. Profit Margin Profit Margin 2016 = 608 million/16,441 million = 3.70% Profit Margin 2015 = 549 million/17,613 million = 3.12% The profit margin for Target Corporation improved marginally from 3.12% in 2015 to 3.70% in 2016. 2. Asset Turnover Asset Turnover 2016 = 16,441 million/38,603 million = 42.59% Asset Turnover 2015 = 17,613 million/41,451 million = 42.49% The Asset turnover for Target Corporation improved marginally from 42.49% in 2015 to 42.59% in 2016. 3. Return on Assets Return on Assets 2016 = 608 million/38,603 million = 1.58% Return on Assets 2015 = 549 million/41,451 million = 1.32% The Return on Assets for Target Corporation improved marginally from 1.32% in 2015 to 1.58% in 2016. Liquidity Ratios 1. Cash Flow Yield Cash Flow Yield 2016 = 2,881 million/608 million = 4.74 times Cash Flow Yield 2015 = 3,839 million/549 million = 6.99 times The Cash Flow Yield for Target Corporation reduced from $6.99 per $1 of net income in 2015 to $4.74 per $1 of 2. Cash Flow to Sales Cash Flow to Sales 2016 = 2,881 million/16,441 million = 0.18 times Cash Flow to Sales 2015 = 3,839 million/17,613 million = 0.22 times The Cash Flow to Sales for Target corporation decreased marginally from $0.22 per $1 of net revenues in 2015 t 3. Cash Flow to Assets Cash Flow to Assets 2016 = 2,881 million/38,603 million = 0.07 times Cash Flow to Assets 2015 = 3,839 million/41,451 million = 0.09 times The Cash Flow to Sales for Target corporation fell marginally from $0.09 per $1 of total assets in 2015 to $0.07 p 4. Free Cash Flow Free Cash Flow 2016 = 2,881 million - 1,138 million - 1,011 million = $732 million Free Cash Flow 2015 = 3,839 million - 1,069million - 1,017 million = $1,753 million The Target Corporation reduced significantly from $1,753 million in 2015 to $732 million in 2016. Financial Risk Ratios 1. Debt to Equity Debt to Equity 2016 = 27,534 million/11,069 million = 2.49 times Debt to Equity 2015 = 28,195 million/13,256 million = 2.13 times The Debt to equity ratio for Target Corporation deteriorated marginally from 2.13 times in 2015 to 2.49 times in 2. Return on Equity Return on Equity 2016 = 608 million/11,069 million = 5.49% Return on Equity 2015 = 549 million/13,256 million = 4.14% The return on equity for Target Corporation improved marginally from 4.14% in 2015 to 5.49% in 2016. 3. Interest Coverage Interest coverage 2016 = 1,061 million/142 million Interest Coverage 2015 = 846 million/151 million = 7.47 times = 5.80 times The interest coverage for Target corporation improved significantly from 5.80 times in 2015 to 7.47 times in 201 70% in 2016. o 42.59% in 2016. to 1.58% in 2016. n 2015 to $4.74 per $1 of net income in 2016. of net revenues in 2015 to $0.18 per $1 of net revenues in 2016. l assets in 2015 to $0.07 per $1 of total assets in 2016. s in 2015 to 2.49 times in 2016. This has put Target Corporation at more risk of insolvency in 2016 than in 2015 o 5.49% in 2016. 2015 to 7.47 times in 2016. Profitability Profit Margin Asset Turnover Return on Assets Walmart Stores Inc. 2016 2015 2.73% 2.93% 56.65% 56.84% 1.55% 1.66% From the above profitability ratios, Target Corporation is more profitable in terms of Profit margins with 3.70% in Wlamrt, on the other hand, is more profitable in terms of asset trunover with 56.65% in quarter 3 of 2016 comp There is no much difference in the profitability of the two companies in terms of returns on assets. Liquidity Cash folw yield Cash flow to sales Cash flow to Assets Free Cash Flows Walmart Stores Inc. 2016 2015 6.13 4.40 0.17 0.13 0.095 0.073 3,912 million 2,710 million From the above liquidity ratios, we can say Walamrt is in a better cash position and hence better ability to pay it Walmart has better cash flow yield, cash flow to assets and free cash flows compared to target corporation. Financial Risk Debt to Equity Return on Equity Interest Coverage Walmart Stores Inc. 2016 2015 1.57 1.48 3.98% 4.13% 8.75 10.35 Walmart has a better debt to equity than Target Corporation with 1.57 in quarter 3 of 2016 compared to target' Target Corporation on the other hand has better return on equity with 5.49% compared to 3.98% of Walmart sto Conclusion If I were to invest between the two companies, I would invest in Target Corpoartion,. It ios more profitable than Although Walmart is better in terms of liuidity and financila risk, Target Corporation is in a stable position in term Target Corporation 2016 2015 3.70% 3.12% 42.59% 42.49% 1.58% 1.32% ofit margins with 3.70% in quarter 3 2016 compared to Walmart's 2.73% over the same period. n quarter 3 of 2016 compared to Target's 42.59% over the same period. ns on assets. Target Corporation 2016 2015 4.74 6.99 0.18 0.22 0.07 0.09 732 million 1,753 million nce better ability to pay its obligations when they fall due than Target Corporation. o target corporation. Target Corporation 2016 2015 2.49 2.13 5.49% 4.14% 7.47 5.80 2016 compared to target's 2.49 d to 3.98% of Walmart stores. ios more profitable than walmart in terms of margins and its margins are also improving. n a stable position in terms of both liquidity and financial risk. 9 Months Ended Oct. 31, 2016 Document And Entity Information - shares Document And Entity Information [Abstract] Entity Registrant Name Entity Central Index Key Current Fiscal Year End Date Entity Filer Category Document Type Document Period End Date Document Fiscal Year Focus Document Fiscal Period Focus Amendment Flag Entity Common Stock, Shares Outstanding Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Nov. 28, 2016 WAL MART STORES INC 104,169 --01-31 Large Accelerated Filer 10-Q Oct. 31, 2016 2,017 Q3 false 3,073,190,306 Yes No Yes Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions 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 before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Basic net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share: Diluted net income per common share attributable to Walmart Weighted-average common shares outstanding: Basic Diluted Dividends declared per common share 3 Months Ended Oct. 31, 2016 Oct. 31, 2015 9 Months Ended Oct. 31, 2016 Oct. 31, 2015 $ 117,176 1,003 118,179 $ 116,598 810 117,408 $ 351,567 3,370 354,937 $ 349,930 2,533 352,463 87,484 25,576 5,119 87,446 24,248 5,714 263,513 74,865 16,559 263,985 71,015 17,463 528 81 (24) 585 4,534 1,332 3,202 (168) $ 3,034 509 64 (21) 552 5,162 1,748 3,414 (110) $ 3,304 1,536 246 (70) 1,712 14,847 4,540 10,307 (421) $ 9,886 1,555 428 (64) 1,919 15,544 5,212 10,332 (212) $ 10,120 $ 0.98 $ 1.03 $ 3.17 $ 3.14 $ 0.98 $ 1.03 $ 3.16 $ 3.13 3,089 3,100 $0 3,210 3,219 $0 3,114 3,124 $2 3,221 3,231 $ 1.96 Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Consolidated net income attributable to Walmart Other comprehensive income (loss), net of income taxes Currency translation and other 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 Net investment hedging Other comprehensive income (loss), net of income taxes Derivative instruments Cash flow hedging Other comprehensive income (loss), net of income taxes Derivative instruments 3 Months Ended Oct. 31, 2016 Oct. 31, 2015 $ 3,202 $ 3,414 (168) (110) 3,034 3,304 9 Months Ended Oct. 31, 2016 Oct. 31, 2015 $ 10,307 $ 10,332 (421) (212) 9,886 10,120 (757) 17 (661) (2) (2,694) (1) (2,569) 298 (1,086) (89) (830) 92 (3,941) 73 (3,842) 351 (663) 2,541 (170) (2,271) 845 188 (738) 9,477 (329) (3,491) 6,490 139 2,371 1,033 9,148 6,629 258 182 468 101 $ (179) $ (56) $ (123) $ (75) Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other assets and deferred charges Total assets Current liabilities: Short-term borrowings Accounts payable Dividends payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity Oct. 31, 2016 Jan. 31, 2016 Oct. 31, 2015 $ 5,939 5,344 49,822 2,296 63,401 $ 8,705 5,624 44,469 1,441 60,239 $ 6,990 5,012 50,706 2,404 65,112 179,667 (70,991) 108,676 176,958 (66,787) 110,171 176,660 (65,825) 110,835 11,482 (5,070) 6,412 17,792 10,576 206,857 11,096 (4,751) 6,345 16,695 6,131 199,581 10,948 (4,827) 6,121 17,051 6,025 205,144 5,082 42,990 1,541 21,243 459 2,266 549 74,130 36,178 5,930 10,144 2,708 38,487 0 19,607 521 2,745 551 64,619 38,214 5,816 7,321 4,960 40,553 1,589 19,499 587 2,746 558 70,492 38,617 5,581 7,824 308 2,084 87,636 (12,335) 77,693 2,782 80,475 $ 206,857 317 1,805 90,021 (11,597) 80,546 3,065 83,611 $ 199,581 321 2,006 87,903 (10,659) 79,571 3,059 82,630 $ 205,144 Condensed Consolidated Statement Of Shareholders' Equity (Unaudited) - 9 months ended Oct. 31, 2016 - USD ($) shares in Millions, $ in Millions Balances at Jan. 31, 2016 Balances, in shares at Jan. 31, 2016 Increase (Decrease) in Stockholders' Equity [Roll Forward] Consolidated net income Other comprehensive income (loss), net of income taxes Cash dividends declared Purchase of Company stock Purchase of Company stock (in shares) Dividends declared to noncontrolling interest Other, in shares Other Balances at Oct. 31, 2016 Balances, in shares at Oct. 31, 2016 Total $ 83,611 10,307 (830) (6,221) (6,178) Common stock $ 317 3,162 Capital in excess of par value $ 1,805 Retained earnings $ 90,021 9,886 $ (9) (89) (125) (6,221) (6,044) 404 $ 2,084 (6) $ 87,636 (522) 6 308 $ 80,475 $ 308 3,079 Accumulated other comprehensive income (loss) $ (11,597) (738) $ (12,335) Total Walmart shareholders' equity $ 80,546 9,886 (738) (6,221) (6,178) 398 $ 77,693 Nonredeemable noncontrolling interest $ 3,065 421 (92) (522) (90) $ 2,782 Consolidated Statement Of Shareholders' Equity (Parenthetical) - $ / shares Statement of Stockholders' Equity [Abstract] Dividends declared per common share Feb. 18, 2016 $2 Oct. 31, 2016 $0 Oct. 31, 2015 $0 Oct. 31, 2016 $2 Oct. 31, 2015 $ 1.96 Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions Cash flows from operating activities: Consolidated net income Adjustments to reconcile net income (loss) to cash provided by (used in) 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 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 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 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 period 9 Months Ended Oct. 31, 2016 Oct. 31, 2015 $ 10,307 $ 10,332 7,374 1,167 (387) 7,023 (987) 644 271 (5,516) 5,121 1,256 51 19,644 783 (6,637) 3,603 662 (418) 15,005 (7,459) 783 0 (1,901) (2,406) (67) (11,050) (8,223) 362 246 0 0 48 (7,567) 2,302 134 (2,040) (4,682) (6,254) (320) (89) (186) (11,135) (225) (2,766) 8,705 $ 5,939 3,537 41 (4,422) (4,728) (1,720) (609) (890) (468) (9,259) (324) (2,145) 9,135 $ 6,990 Summary of Significant Accounting Policies Organization, Consolidation and Presentation of Financial Statements [Abstract] Basis of presentation 9 Months Ended Oct. 31, 2016 Accounting Policies Basis of Presentation The Condensed Consolidated Financial Statements of Wal-Mart Stores, Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2016 . Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K . The Company's Condensed Consolidated Financial Statements are based on a fiscal year ending on January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of October 2016 related to the operations consolidated using a lag that materially affected the Condensed Consolidated Financial Statements. The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31. Receivables Receivables are stated at their carrying values, net of a reserve for doubtful accounts. Receivables consist primarily of amounts due from: insurance companies resulting from pharmacy sales; banks for customer credit and debit cards and electronic bank transfers that take in excess of seven days to process; consumer financing programs in certain international operations; suppliers for marketing or incentive programs; and real estate transactions. The Walmart International segment offers a limited number of consumer credit products, primarily through its financial institutions in Canada and Chile to customers in those markets. The receivable balance from consumer credit products was $1.2 billion , net of a reserve for doubtful accounts of $77 million at October 31, 2016 , compared to a receivable balance of $ 1.0 billion , net of a reserve for doubtful accounts of $70 million at January 31, 2016 . These balances are included in receivables, net, in the Company's Condensed Consolidated Balance Sheets. Inventories The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting, using the last-in, first-out ("LIFO") method for substantially all of the Walmart U.S. segment's inventories. The inventory at the Walmart International segment is valued primarily by the retail inventory method of accounting, using the first-in, first-out ("FIFO") method. The retail inventory method of accounting results in inventory being valued at the lower of cost or market, since permanent markdowns are immediately recorded as a reduction of the retail value of inventory. The inventory at the Sam's Club segment is valued using the LIFO method. At October 31, 2016 and January 31, 2016 , the Company's inventories valued at LIFO approximated those inventories as if they were valued at FIFO. Recent Accounting Pronouncements Revenue Recognition In May 2014, the Net Income Per Common Share Earnings Per Share [Abstract] Net income per common share 9 Months Ended Oct. 31, 2016 Net Income Per Common Share Basic income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period. Diluted income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did not have significant share-based awards outstanding that were antidilutive and not included in the calculation of diluted income per common share attributable to Walmart for the three and nine months ended October 31, 2016 and 2015 . The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted income per common share attributable to Walmart: Three Months Ended October 31, Nine Months Ended October 31, (Amounts in millions, except per share data) 2016 2015 2016 2015 Numerator Consolidated net income $ 3,202 $ 3,414 $ 10,307 $ 10,332 Consolidated net income attributable to noncontrolling interest (168 ) (110 ) (421 ) (212 ) Consolidated net income attributable to Walmart $ 3,034 $ 3,304 $ 9,886 $ 10,120 Denominator Weighted-average common shares outstanding, basic 3,089 3,210 3,114 3,221 Dilutive impact of stock options and other share-based awards 11 9 10 10 Weighted-average common shares outstanding, diluted 3,100 3,219 3,124 3,231 Net income per common share attributable to Walmart Basic $ 0.98 $ 1.03 $ 3.17 $ 3.14 Diluted 0.98 1.03 3.16 3.13 Accumulated Other Comprehensive Loss Other Comprehensive Income (Loss), Tax [Abstract] Accumulated Other Comprehensive Loss 9 Months Ended Oct. 31, 2016 Accumulated Other Comprehensive Loss The following table provides the changes in the composition of total accumulated other comprehensive loss for the nine months ended October 31, 2016 : (Amounts in millions and net of income taxes) Currency Translation and Other Net Investment Hedges Cash Flow Hedges Minimum Pension Liability Total Balances as of February 1, 2016 $ (11,690 ) $ 1,022 $ (336 ) $ (593 ) $ (11,597 ) Other comprehensive income (loss) before reclassifications (994 ) 468 (151 ) (83 ) (760 ) Amounts reclassified from accumulated other comprehensive loss 28 (6 ) 22 Balances as of October 31, 2016 $ (12,684 ) $ 1,490 $ (459 ) $ (682 ) $ (12,335 ) Amounts reclassified from accumulated other comprehensive loss for derivative instruments are recorded in interest, net, in the Company's Condensed Consolidated Statements of Income, and the amounts for the minimum pension liability are recorded in operating, selling, general and administrative expenses in the Company's Condensed Consolidated Statements of Income. Long-term Debt Long-term Debt, by Current and Noncurrent [Abstract] Long-term debt 9 Months Ended Oct. 31, 2016 Long-term Debt The following table provides the changes in the Company's long-term debt for the nine months ended October 31, 2016 : (Amounts in millions) Long-term debt due within one year Long-term debt Total Balances as of February 1, 2016 $ 2,745 $ 38,214 $ 40,959 Proceeds from long-term debt 134 134 Repayments of long-term debt (2,040 ) (2,040 ) Reclassifications of long-term debt 1,500 (1,500 ) Other 61 (670 ) (609 ) Balances as of October 31, 2016 $ 2,266 $ 36,178 $ 38,444 Issuances The Company did not have any material long-term debt issuances during the nine months ended October 31, 2016 , but received proceeds from a number of small, immaterial long-term debt issuances by several of its non-U.S. operations. Maturities During the nine months ended October 31, 2016 , the following long-term debt matured and was repaid: (Amounts in millions) Maturity Date Principal Amount Fixed vs. Floating Interest Rate Repayment April 11, 2016 1,000 USD Fixed 0.600% $ 1,000 April 15, 2016 1,000 USD Fixed 2.800% 1,000 $ 2,000 The Company also repaid other, smaller long-term debt as it matured in several of its nonU.S. operations. Fair Value Measurements Fair Value Disclosures [Abstract] Fair value measurements 9 Months Ended Oct. 31, 2016 Fair Value Measurements The Company records and discloses certain financial and non-financial assets and liabilities at fair value. The fair value of an asset is the price at which the asset could be sold in an ordinary transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. The fair value of a liability is 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 the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are: Level 1: observable inputs such as quoted prices in active markets; Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions. Recurring Fair Value Measurements The Company holds derivative instruments that are required to be measured at fair value on a recurring basis. The fair values are the estimated amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward curves. As of October 31, 2016 and January 31, 2016 , the notional amounts and fair values of these derivatives were as follows: October 31, 2016 January 31, 2016 (Amounts in millions) Notional Amount Fair Value Notional Amount Fair Value Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges $ 5,000 $ 172 $ 5,000 $ 173 Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges 1,250 532 1,250 319 Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges 3,970 (837 ) 4,132 (609 ) Total $ 10,220 $ (133 ) $ 10,382 $ (117 ) Additionally, the Company has available-for-sale securities that are measured at fair value on recurring basis using Level 1 inputs. Changes in fair value are recorded in accumulated other comprehensive loss. Nonrecurring Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company did not record any significant impairment charges to assets measured at fair value on a nonrecurring basis during the three and nine months ended October 31, 2016 , or for the fiscal year ended January 31, 2016 . Other Fair Value Disclosures The Company records cash and cash equivalents and short-term borrowings at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities. The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the Company's current incremental borrowing rate for similar types of borrowing arrangements. The carrying value and fair value of the Company's long-term debt as of October 31, 2016 and January 31, 2016 , are as follows: October 31, 2016 January 31, 2016 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including amounts due within one year $ 38,444 $ 46,797 $ 40,959 $ 46,965 Derivative Financial Instruments Summary of Derivative Instruments [Abstract] Derivative financial instruments 9 Months Ended Oct. 31, 2016 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 variable-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 financial instrument will change. In a hedging relationship, the change in the value of the derivative financial instrument is offset to a great extent by the change in the value of the underlying hedged item. Credit risk related to a derivative financial instrument 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 when appropriate. The Company only enters into derivative transactions with counterparties rated "A-" or better by nationally recognized credit rating agencies. Subsequent to entering into derivative transactions, the Company regularly monitors the credit ratings of its counterparties. In connection with various derivative agreements, including master netting arrangements, the Company held cash collateral from counterparties of $266 million and $345 million at October 31, 2016 and January 31, 2016 , respectively. The Company records cash collateral received as amounts due to the counterparties exclusive of any derivative asset. Furthermore, as part of the master netting arrangements with each of these counterparties, the Company is also required to post collateral with a counterparty if the Company's net derivative liability position exceeds $150 million with such counterparties. The Company did not have any cash collateral posted with counterparties at October 31, 2016 , however, the Company did have an insignificant amount of cash collateral posted with counterparties at January 31, 2016 . The Company records cash collateral it posts with counterparties as amounts receivable from those counterparties exclusive of any derivative liability. The Company uses derivative financial instruments for the purpose of hedging its exposure to interest and currency exchange rate risks and, accordingly, the contractual terms of a hedged 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 financial instrument is recorded using hedge accounting, 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. Any hedge ineffectiveness is immediately recognized in earnings. The Company's net investment and cash flow instruments are highly effective hedges and the ineffective portion has not been, and is not expected to be, significant. Instruments that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge Share Repurchases Class of Stock Disclosures [Abstract] Share repurchases 9 Months Ended Oct. 31, 2016 Share Repurchases From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. The current $20.0 billion share repurchase program has no expiration date or other restrictions limiting the period over which the Company can make share repurchases. At October 31, 2016 , authorization for $11.3 billion of share repurchases remained under the current share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status. The Company considers several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings and the market price of its common stock. The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for the nine months ended October 31, 2016 and 2015 : Nine Months Ended October 31, (Amounts in millions, except per share data) 2016 2015 Total number of shares repurchased 90.6 23.2 Average price paid per share $ 69.04 $ 74.20 Total amount paid for share repurchases $ 6,254 $ 1,720 Common Stock Dividends Dividends, Common Stock [Abstract] Dividends payable 9 Months Ended Oct. 31, 2016 Common Stock Dividends Dividends Declared On February 18, 2016 , the Board of Directors approved the fiscal 2017 annual dividend of $2.00 per share, an increase over the fiscal 2016 annual dividend of $1.96 per share. For fiscal 2017 , the annual dividend will be paid in four quarterly installments of $0.50 per share, according to the following record and payable dates: Record Date Payable Date March 11, 2016 April 4, 2016 May 13, 2016 June 6, 2016 August 12, 2016 September 6, 2016 December 9, 2016 January 3, 2017 The dividend installments payable on April 4, 2016 , June 6, 2016 and September 6, 2016 were paid as scheduled. Contingencies Commitments and Contingencies Disclosure [Abstract] Contingencies 9 Months Ended Oct. 31, 2016 Contingencies 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 Condensed Consolidated Financial Statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. However, where a liability is reasonably possible and may be 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 and its shareholders. Unless stated otherwise, 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 a liability material to the Company's financial condition or results of operations. ASDA Equal Value Claims: ASDA Stores, Ltd. ("ASDA"), a wholly-owned subsidiary of the Company, is a defendant in over 8,000 "equal value" claims that are proceeding before an Employment Tribunal in Manchester (the "Employment Tribunal") in the United Kingdom ("UK") on behalf of current and former ASDA store employees, who allege that the work performed by female employees in ASDA's retail stores is of equal value in terms of, among other things, the demands of their jobs to that of male employees working in ASDA's warehouse and distribution facilities, and that the disparity in pay between these different job positions is not objectively justified. Claimants are requesting differential back pay based on higher wage rates in the warehouse and distribution facilities and those higher wage rates on a prospective basis as part of these equal value proceedings. ASDA believes that further claims may be asserted in the near future. On March 23, 2015, ASDA asked the Employment Tribunal to stay all proceedings and to "strike out" substantially all of the claims. On July 23, 2015, the Employment Tribunal denied ASDA's requests. Following additional proceedings, the Employment Appeal Tribunal agreed to review the "strike out" issue and the Court of Appeals agreed to review the stay issue. On May 26, 2016, the Court of Appeals denied ASDA's appeal of the stay issue. On October 14, 2016, following a preliminary hearing, the Employment Tribunal ruled that claimants could compare their positions in ASDA's retail stores with those of employees in ASDA's warehouse and distribution facilities. Claimants will now proceed to the next phase of their claims. That phase will determine whether the work performed by the claimants is of equal value to the work performed by employees in ASDA's warehouse and distribution facilities. On November 23, 2016, ASDA filed a request with the Employment Appeal Tribunal to hear an appeal of the October 14, 2016 ruling. At present, the Company cannot predict the number of such claims that may be filed, and cannot reasonably estimate any loss or range of loss that may arise from these proceedings. The Company believes it has substantial factual and legal defenses to these claims, and intends to defend the claims vigorously. FCPA Investigation and Related Matters The Audit Committee (the "Audit Committee") of the Board of Directors of the Company, which is composed solely of independent directors, has been conducting an internal investigation into, among other things, alleged violations of the U.S. Foreign Corrupt Practices Act ("FCPA") and other alleged crimes or misconduct in connection with Acquisitions, Disposals and Related Items Business Combinations [Abstract] Acquisitions, disposals and related items 9 Months Ended Oct. 31, 2016 Acquisitions, Disposals and Related Items In July 2015 , the Company completed the purchase of all of the remaining noncontrolling interest in Yihaodian, our e-commerce operations in China, for approximately $760 million , using existing cash to complete this transaction. In June 2016, the Company sold certain assets relating to Yihaodian, including the Yihaodian brand, website and application, to JD.com, Inc. ("JD") in exchange for Class A ordinary shares of JD representing approximately five percent of JD's outstanding ordinary shares on a fully diluted basis. The $1.5 billion investment in JD is carried at cost and is included in other assets and deferred charges in the accompanying Condensed Consolidated Balance Sheets. The sale resulted in the recognition of a $535 million noncash gain in the Walmart International segment which is