Many companies make annual reports available on their corporate website. Annual reports on Form 10-K also can be accessed through the SEC's EDGAR system at www.sec.gov (under Filing Type, search for 10-K). Access the most recent annual report for Walmart, a U.S.-based multinational company (MNC) to complete the following requirements:

• Identify the location(s) in the annual report that provides disclosures related to the translation of foreign currency financial statements and foreign currency hedging. Detail why foreign currency hedging is important for MNCs.
• Determine whether the Walmart's foreign operations have a predominant functional currency. Explain the pros and cons of reporting in the company's home currency.
• List the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years.
• Determine whether Walmarts hedges net investments in foreign operations. If so, determine the type(s) of hedging instrument used. If not, suggest a hedging instrument and explain how it would be reported.