UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

________________________

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):
May 19, 2015

Wal-Mart Stores, Inc.
(Exact Name of Registrant as Specified in Charter)

	
			
Delaware	001-06991	71-0415188	
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)	

702 S.W. 8th Street
Bentonville, Arkansas 72716
(Address of Principal Executive Offices) (Zip code)

Registrant’s telephone number, including area code:
(479) 273-4000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Item 2.02. Results of Operations and Financial Condition.
In accordance with Item 2.02 of Form 8-K of the Securities and Exchange Commission (the "SEC"), Wal-Mart Stores, Inc., a Delaware corporation (the "Company"), is furnishing to the SEC a press release that the Company will issue on May 19, 2015 (the "Press Release"). The Press Release will disclose information regarding the Company's results of operations for the three months ended April 30, 2015, and the Company's financial condition as of April 30, 2015.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, which is furnished herewith pursuant to and relates to this Item 2.02, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of Section 18 of the Exchange Act. The information in this Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 hereto shall not be incorporated by reference into any filing or other document filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, the rules and regulations of the SEC thereunder, the Exchange Act, or the rules and regulations of the SEC thereunder except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1 - A copy of the Press Release being furnished pursuant to and that is related to the foregoing Item 2.02 is included herewith as Exhibit 99.1.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 19, 2015

		
WAL-MART STORES, INC.	

 	 	
By:	/s/ Charles M. Holley, Jr.	
Name:	Charles M. Holley, Jr.	
Title:	Executive Vice President and
Chief Financial Officer	

Exhibit 99.1

Walmart reports Q1 FY 16 EPS of $1.03

						
	Q1 diluted EPS from continuing operations was $1.03, within guidance of $0.95 to $1.10.	 	 	"We had a solid first quarter. We took some important strategic steps to strengthen the foundation of our business for the future. We need to continue to get better at consistently running great stores, clubs and e-commerce everywhere we operate...and we are."

Doug McMillon, President and CEO, Wal-Mart Stores, Inc.	 	
	Currency negatively impacted EPS by approximately $0.03.	 	 		 	
	Walmart U.S. 1.1% comp includes positive traffic for the second consecutive quarter. Customer experience scores improved in all formats. Customers benefited from lower gas prices.	 	 		 	
	E-commerce sales globally increased approximately 17%.	 	 		 	
	Consolidated operating income declined 8.3%, due to impacts from currency fluctuations and investments in associate wages & training and e-commerce.	 	 		 	
 	(Amounts in billions, except as noted)	 	 	 	 	

		
	(Consolidated)	

					
Revenue	Revenue ex. fx 1	Operating income	
-0.1%	2.7%	-8.3%	
 	fx impact -$3.3 billion	-6.1	 %	ex. fx 1	

	
		
	(U.S.)	

				
Net Sales	Comp Sales 2	Operating income	
3.5%	Traffic: -1.4%	Traffic: 1.0%	-6.8%	
 	Ticket: 1.3%	Ticket: 0.1%	 	
 	E-commerce 30 bps	E-commerce 20 bps	 	
  
1 See additional information at the end of this release regarding non-GAAP financial measures.
2 13-week period ended May 1, 2015, compared to 13-week period ended May 2, 2014.

			
NYSE: WMT	May 19, 2015	stock.walmart.com	

2

	

	
					
Net Sales	Net Sales ex. fx 1	Operating income	
-6.6%	3.4%	-11.0%	
 	 	0.1	%	ex. fx 1	

	

	
						
Net Sales	Comp sales w/o fuel 1,2	Operating income	
-3.0%	Traffic: -0.2%	Traffic: -0.2%	-10.9%	
1.2% ex. fuel 1	Ticket: -0.3%	Ticket: 0.6%	-8.6	 %	ex. fuel 1	
 	E-commerce 20 bps	E-commerce 40 bps	 	 	

	
				
Dividends paid	Share repurchases	Return on investment 1	Free cash flow 1	

	
				
$1.5 billion LY	$626 million LY	16.7% LY	$3.8 billion LY	

1 See additional information at the end of this release regarding non-GAAP financial measures.
2 13-week period ended May 1, 2015, compared to 13-week period ended May 2, 2014.

			
NYSE: WMT	May 19, 2015	stock.walmart.com	

3

	
						
	 	"Based on our views of the global macro-economic environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2016 earnings per share to range between $1.06 and $1.18. Our second quarter guidance includes the impact of approximately $0.04 per share from our previously announced investments in both U.S. associate wages and training, as well as $0.04 per share from currency."

Charles Holley, Executive Vice President and CFO, Wal-Mart Stores, Inc.	 	
	 		 	
	 	EPS
Q2 FY16	Walmart U.S.
comp 2	Sam’s Club comp
w/o fuel 1,2	 	
	 	$1.06 - $1.18
LY: $1.21	Around 1%
LY: Flat	Flat to +2%
LY: Flat	 	

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, nearly 260 million customers and members visit our 11,489 stores under 72 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 revenue of $485.7 billion, Walmart employs approximately 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart .

Investor Relations contact
Carol Schumacher (479) 277-1498

Media Relations contact
Randy Hargrove (800) 331-0085

Along with this press release, Walmart makes available a recorded call with executive leaders to review the business results, to provide strategic updates and to comment on expectations for the future. We provide that call in both audio form and in a written transcript. Details on accessing the call are as follows:

•	877-523-5612 (U.S. and Canada)	
		
•	201-689-8483 (other countries)	
		
•	Passcode: 9256278 (Walmart)	
		
•	MP3 @ stock.walmart.com	

The call is archived at stock.walmart.com

###

1 See additional information at the end of this release regarding non-GAAP financial measures.
2 13-week period ending July 31, 2015, compared to 13-week period ended Aug. 1, 2014.

			
NYSE: WMT	May 19, 2015	stock.walmart.com	

4

	
	
Forward Looking Statements	
 	
This release contains statements as to Walmart management's guidance regarding the diluted earnings per share from continuing operations attributable to Walmart for the three months ending July 31, 2015 (and assumptions underlying such guidance) and Walmart U.S.'s comparable store sales and Sam's Club's comparable club sales excluding fuel for the 13 weeks ending July 31, 2015. Walmart believes such statements, which address future operating results by Walmart and the assumptions underlying Walmart's expectations regarding future operating results, are "forward-looking statements" as defined in, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by, the Private Securities Litigation Reform Act of 1995, as amended. Walmart's actual results may differ materially from the guidance provided as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including:
		
•	economic, geo-political and business conditions, trends and events, globally and in the markets in which Walmart operates;	
		
•	currency exchange rate fluctuations;	
		
•	the amount of Walmart's net sales denominated in U.S. and in foreign currencies;	
		
•	Walmart's effective tax rate;	
		
•	changes in market interest rates;	
		
•	unemployment levels;	
		
•	inflation or deflation, generally and in certain product categories;	
		
•	competitive pressures;	
		
•	consumer confidence, disposable income, credit availability, spending levels, shopping patterns, and demand for certain merchandise;	
		
•	customer traffic and average ticket in Walmart's stores and clubs and on its e-commerce websites;	
		
•	the availability of investment opportunities in the e-commerce sector;	
		
•	the mix of merchandise Walmart sells and disruptions in seasonal buying patterns;	
		
•	consumer acceptance of Walmart's stores and clubs, e-commerce websites, mobile apps, programs and merchandise offerings;	
		
•	the level of public assistance payments;	
		
•	natural disasters, public health emergencies, civil disturbances, and terrorist attacks;	
		
•	commodity prices and Walmart's cost of goods sold;	
		
•	transportation, energy and utility costs, as well as selling prices of gasoline and diesel fuel;	
		
•	delays in opening new, expanded or relocated units;	
		
•	supply chain disruptions;	
		
•	cybersecurity events affecting Walmart and related costs;	
		
•	trade restrictions and tariff rates;	
		
•	Walmart's labor costs, including healthcare and other benefit costs;	
		
•	Walmart's casualty and accident-related costs and insurance costs;	
		
•	turnover in Walmart's workforce;	
		
•	changes in tax, labor and other laws and changes in tax rates;	
		
•	Walmart's expenditures for FCPA and compliance-related costs;	
		
•	outcomes of and costs incurred in legal proceedings to which Walmart is a party; and	
		
•	the risks relating to Walmart's operations and financial performance discussed in Walmart's most recent annual report on Form 10-K filed with the SEC.	
You should read this release in conjunction with that annual report on Form 10-K and Walmart's quarterly reports on Form 10-Q and current reports on Form 8-K subsequently filed with the SEC. You should consider all of the risks, uncertainties and other factors identified above and in those SEC reports carefully when evaluating the forward-looking statements in this release. Walmart cannot assure you that the future results reflected in or implied by any such forward-looking statement will be realized or, even if substantially realized, will have the forecast or expected consequences and effects for or on Walmart's operations or financial performance. Such forward-looking statements are made as of the date of this release, and Walmart undertakes no obligation to update such statements to reflect subsequent events or circumstances.

5

Wal-Mart Stores, Inc.
Consolidated Statements of Income
(Unaudited)  

												
 	 	Three Months Ended	
SUBJECT TO RECLASSIFICATION	 	April 30,	
(Dollars in millions, except per share data)	 	2015		2014	 	Percent Change	
Revenues:	 	 	 	 	 	 	
Net sales	 	$	114,002			$	114,167		 	(0.1	)%	
Membership and other income	 	824			793		 	3.9	 %	
Total revenues	 	114,826			114,960		 	(0.1	)%	
Costs and expenses:	 						 			
Cost of sales	 	86,483			86,714		 	(0.3	)%	
Operating, selling, general and administrative expenses	 	22,663			22,053		 	2.8	 %	
Operating income	 	5,680			6,193		 	(8.3	)%	
Interest:	 						 			
Debt	 	523			531		 	(1.5	)%	
Capital lease and financing obligations	 	320			61		 	424.6	 %	
Interest income	 	(19	)		(24	)	 	(20.8	)%	
Interest, net	 	824			568		 	45.1	 %	
Income from continuing operations before income taxes	 	4,856			5,625		 	(13.7	)%	
Provision for income taxes	 	1,573			1,914		 	(17.8	)%	
Income from continuing operations	 	3,283			3,711		 	(11.5	)%	
Income from discontinued operations, net of income taxes	 	—			15		 	(100.0	)%	
Consolidated net income	 	3,283			3,726		 	(11.9	)%	
Consolidated net income attributable to noncontrolling interest	 	58			(133	)	 	(143.6	)%	
Consolidated net income attributable to Walmart	 	$	3,341			$	3,593		 	(7.0	)%	
 	 	 	 	 	 	 	
Income from continuing operations attributable to Walmart:	 	 	 	 	 	 	
Income from continuing operations	 	$	3,283			$	3,711		 	(11.5	)%	
Income from continuing operations attributable to noncontrolling interest	 	58			(129	)	 	(145.0	)%	
Income from continuing operations attributable to Walmart	 	$	3,341			$	3,582		 	(6.7	)%	

Basic net income per common share:	 	 	 	 	 	 	
Basic income per common share from continuing operations attributable to Walmart	 	$	1.03			$	1.10		 	(6.4	)%	
Basic income per common share from discontinued operations attributable to Walmart	 	—			0.01		 	(100.0	)%	
Basic net income per common share attributable to Walmart	 	$	1.03			$	1.11		 	(7.2	)%	
 	 	 	 	 	 	 	
Diluted net income per common share:	 	 	 	 	 	 	
Diluted income per common share from continuing operations attributable to Walmart	 	$	1.03			$	1.10		 	(6.4	)%	
Diluted income per common share from discontinued operations attributable to Walmart	 	—			0.01		 	(100.0	)%	
Diluted net income per common share attributable to Walmart	 	$	1.03			$	1.11		 	(7.2	)%	
 	 	 	 	 	 	 	
Weighted-average common shares outstanding:	 	 	 	 	 	 	
Basic	 	3,231			3,233		 	 	
Diluted	 	3,243			3,248		 	 	
 	 	 	 	 	 	 	
Dividends declared per common share	 	$	1.96		 	$	1.92		 	 	

6

Wal-Mart Stores, Inc.
Consolidated Balance Sheets
(Unaudited)

													
SUBJECT TO RECLASSIFICATION	 	 	 	 	 	 	
(Dollars in millions)	 	April 30,	 	January 31,	 	April 30,	
ASSETS	 	2015	 	2015	 	2014	
Current assets:	 	 	 	 	 	 	
Cash and cash equivalents	 	$	7,759		 	$	9,135		 	$	6,012		
Receivables, net	 	5,813		 	6,778		 	6,096		
Inventories	 	46,310		 	45,141		 	45,315		
Prepaid expenses and other	 	2,251		 	2,224		 	1,811		
Current assets of discontinued operations	 	—		 	—		 	453		
Total current assets	 	62,133		 	63,278		 	59,687		
Property and equipment:	 		 		 		
Property and equipment	 	176,403		 	177,395		 	174,731		
Less accumulated depreciation	 	(64,252	)	 	(63,115	)	 	(59,585	)	
Property and equipment, net	 	112,151		 	114,280		 	115,146		
Property under capital lease and financing obligations:	 		 		 		
Property under capital lease and financing obligations	 	7,090		 	5,239		 	5,529		
Less accumulated amortization	 	(3,556	)	 	(2,864	)	 	(3,032	)	
Property under capital lease and financing obligations, net	 	3,534		 	2,375		 	2,497		
 	 			 			 			
Goodwill	 	17,531		 	18,102		 	19,515		
Other assets and deferred charges	 	5,398		 	5,455		 	5,672		
Total assets	 	$	200,747		 	$	203,490		 	$	202,517		
 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	
Short-term borrowings	 	$	799		 	$	1,592		 	$	3,517		
Accounts payable	 	37,224		 	38,410		 	36,347		
Dividends payable	 	4,741		 	—		 	4,648		
Accrued liabilities	 	18,685		 	19,152		 	17,807		
Accrued income taxes	 	1,707		 	1,021		 	1,966		
Long-term debt due within one year	 	6,041		 	4,791		 	3,266		
Capital lease and financing obligations due within one year	 	427		 	287		 	300		
Current liabilities of discontinued operations	 	—		 	—		 	70		
Total current liabilities	 	69,624		 	65,253		 	67,921		
 	 			 			 			
Long-term debt	 	38,867		 	40,889		 	45,491		
Long-term capital lease and financing obligations	 	4,097		 	2,606		 	2,742		
Deferred income taxes and other	 	8,169		 	8,805		 	8,164		
 	 		 		 		
Commitments and contingencies	 		 		 		
 	 		 		 		
Equity:	 		 		 		
Common stock	 	323		 	323		 	323		
Capital in excess of par value	 	2,354		 	2,462		 	2,111		
Retained earnings	 	82,492		 	85,777		 	73,366		
Accumulated other comprehensive income (loss)	 	(8,595	)	 	(7,168	)	 	(2,712	)	
Total Walmart shareholders’ equity	 	76,574		 	81,394		 	73,088		
Nonredeemable noncontrolling interest	 	3,416		 	4,543		 	5,111		
Total equity	 	79,990		 	85,937		 	78,199		
Total liabilities and equity	 	$	200,747		 	$	203,490		 	$	202,517		

7

Wal-Mart Stores, Inc.
Consolidated Statements of Cash Flows
(Unaudited)  

									
	 	Three Months Ended	
SUBJECT TO RECLASSIFICATION	 	April 30,	
(Dollars in millions)	 	2015		2014	
Cash flows from operating activities:	 	 	 	 	
Consolidated net income	 	$	3,283			$	3,726		
(Income) loss from discontinued operations, net of income taxes	 	—			(15	)	
Income from continuing operations	 	3,283			3,711		
Adjustments to reconcile consolidated net income to net cash provided by operating activities:	 				
Depreciation and amortization	 	2,319			2,250		
Deferred income taxes	 	(159	)		26		
Other operating activities	 	239			543		
Changes in certain assets and liabilities:	 				
Receivables, net	 	782			613		
Inventories	 	(1,475	)		(423	)	
Accounts payable	 	(319	)		(831	)	
Accrued liabilities	 	(919	)		(942	)	
Accrued income taxes	 	695			992		
Net cash provided by operating activities	 	4,446			5,939		
 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	
Payments for property and equipment	 	(2,203	)		(2,157	)	
Proceeds from the disposal of property and equipment	 	68			48		
Other investing activities	 	22			(12	)	
Net cash used in investing activities	 	(2,113	)		(2,121	)	
 	 	 	 	 	
Cash flows from financing activities:	 	 	 	 	
Net change in short-term borrowings	 	(741	)		(4,129	)	
Proceeds from issuance of long-term debt	 	43			4,519		
Payments of long-term debt	 	(915	)		(1,574	)	
Dividends paid	 	(1,579	)		(1,547	)	
Purchase of Company stock	 	(280	)		(626	)	
Dividends paid to noncontrolling interest	 	(69	)		(28	)	
Purchase of noncontrolling interest	 	(70	)		(1,626	)	
Other financing activities	 	(84	)		(166	)	
Net cash used in financing activities	 	(3,695	)		(5,177	)	
 	 						
Effect of exchange rates on cash and cash equivalents	 	(14	)		90		
 	 						
Net increase (decrease) in cash and cash equivalents	 	(1,376	)	 	(1,269	)	
Cash and cash equivalents at beginning of year	 	9,135		 	7,281		
Cash and cash equivalents at end of period	 	$	7,759		 	$	6,012		

8

Wal-Mart Stores, Inc.
Supplemental Financial Information
(Unaudited)

Net sales and operating income

																		
 	Net Sales	 	Operating Income	
 	Three Months Ended	 	Three Months Ended	
 	April 30,	 	April 30,	
(dollars in millions)	2015	2014	Percent Change	 	2015	2014	Percent Change	
Walmart U.S.	$	70,245		$	67,852		3.5	 %	 	$	4,639		$	4,975		-6.8	 %	
Walmart International	30,278		32,424		-6.6	 %	 	1,070		1,202		-11.0	 %	
Sam's Club	13,479		13,891		-3.0	 %	 	427		479		-10.9	 %	
Corporate and support	—		—		—	 %	 	-456		-463		1.5	 %	
Consolidated	$	114,002		$	114,167		-0.1	 %	 	$	5,680		$	6,193		-8.3	 %	

U.S. comparable store sales results

													
 	 	Without Fuel	 	With Fuel	 	Fuel Impact	
 	 	13 Weeks Ended	 	13 Weeks Ended	 	13 Weeks Ended	
 	 	5/1/2015	 	5/2/2014	 	5/1/2015	 	5/2/2014	 	5/1/2015	 	5/2/2014	
Walmart U.S.	 	1.1%	 	-0.1%	 	1.1%	 	-0.1%	 	0.0%	 	0.0%	
Sam's Club	 	0.4%	 	-0.5%	 	-3.8%	 	-0.8%	 	-4.2%	 	-0.3%	
Total U.S.	 	1.0%	 	-0.2%	 	0.2%	 	-0.2%	 	-0.8%	 	0.0%	

Shareholder Returns

							
 	Consolidated	
 	Three Months Ended	
 	April 30,	
(dollars in millions)	2015	2014	
Dividends Paid	$	1,579		$	1,547		
Share Repurchases	$	280		$	626		

9

Wal-Mart Stores, Inc.
Reconciliations of and Other Information Regarding Non-GAAP Financial Measures
(Unaudited)

The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
Calculation of Return on Investment and Return on Assets
Management believes return on investment (ROI) is a meaningful metric to share with investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term potential strategic initiatives with possible short-term impacts.
ROI was 16.6 percent for the trailing 12 months ended Apr. 30, 2015 , which was relatively flat compared to ROI for the trailing 12 months ended Apr. 30, 2014 . The slight change in ROI was primarily due to continued investments in stores and e-commerce initiatives, offset by currency exchange rate fluctuations.
We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing 12 months divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period, plus a rent factor equal to the rent for the fiscal year or trailing 12 months multiplied by a factor of 8. When we have discontinued operations, we exclude the impact of the discontinued operations.
Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that exclude and include amounts that are included and excluded in the most directly comparable GAAP financial measure. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. In addition, we include a factor of 8 for rent expense that estimates the hypothetical capitalization of our operating leases. We consider return on assets (ROA) to be the financial measure computed in accordance with generally accepted accounting principles (GAAP) that is the most directly comparable financial measure to our calculation of ROI. ROI differs from ROA (which is consolidated income from continuing operations for the period divided by average total assets of continuing operations for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets of continuing operations for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities; and incorporates a factor of rent to arrive at total invested capital.
Although ROI is a standard financial metric, numerous methods exist for calculating a company's ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI. We urge you to understand the methods used by other companies to calculate their ROI before comparing our ROI to that of such other companies.

10

The calculation of ROI, along with a reconciliation to the calculation of ROA, the most comparable GAAP financial measure, is as follows:

													
Wal-Mart Stores, Inc.	
Return on Investment and Return on Assets	
 	 	 	 	Trailing Twelve Months Ended	
 	 	 	 	April 30,	
(Dollars in millions)	 	 	 	2015		2014	
CALCULATION OF RETURN ON INVESTMENT	
Numerator	 	 	 	 	 	 	
Operating income	 	 	 	$	26,634			$	26,627		
+ Interest income	 	 	 	108			100		
+ Depreciation and amortization	 	 	 	9,242			8,933		
+ Rent	 	 	 	2,763			2,859		
Adjusted operating income	 	 	 	$	38,747			$	38,519		
	 	 	 		 		
Denominator	 	 	 		 		
Average total assets of continuing operations 1	 	 	 	$	201,406			$	202,019		
+ Average accumulated depreciation and amortization 1	 	 	 	65,213			59,583		
- Average accounts payable 1	 	 	 	36,786			36,559		
- Average accrued liabilities 1	 	 	 	18,246			17,545		
+ Rent x 8	 	 	 	22,104			22,872		
 Average invested capital	 	 	 	$	233,691			$	230,370		
Return on investment (ROI)	 	 	 	16.6	%		16.7	%	
 	 	 	 	 	 	 	
CALCULATION OF RETURN ON ASSETS	
Numerator	 	 	 	 	 	 	
Income from continuing operations	 	 	 	$	16,386			$	16,330		
Denominator	 	 	 		 		
Average total assets of continuing operations 1	 	 	 	$	201,406			$	202,019		
Return on assets (ROA)	 	 	 	8.1	%		8.1	%	
 	 	 	 	 	 	 	
 	 	As of April 30,	
Certain Balance Sheet Data	 	2015		2014		2013	
Total assets of continuing operations	 	$	200,747			$	202,064			$	201,973		
Accumulated depreciation and amortization	 	67,808			62,617			56,549		
Accounts payable	 	37,224			36,347			36,770		
Accrued liabilities	 	18,685			17,807			17,282		

1 The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2.

11

Free Cash Flow
We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. Free cash flow was $2.2 billion and $3.8 billion for the fiscal years ended Apr. 30, 2015 and 2014 , respectively. The decrease in free cash flow was due to lower income from continuing operations and the impact of the timing of payments for inventory, as well as the timing of income tax payments.
Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated income from continuing operations as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.
Additionally, Walmart's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous methods may exist for calculating a company's free cash flow. As a result, the method used by Walmart's management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow. We urge you to understand the methods used by other companies to calculate their free cash flow before comparing our free cash flow to that of such other companies.
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.

									
 	 	Three Months Ended	
 	 	April 30,	
(Dollars in millions)	 	2015		2014	
Net cash provided by operating activities	 	$	4,446			$	5,939		
Payments for property and equipment	 	(2,203	)		(2,157	)	
Free cash flow	 	$	2,243			$	3,782		
 	 						
Net cash used in investing activities 1	 	$	(2,113	)		$	(2,121	)	
Net cash used in financing activities	 	$	(3,695	)		$	(5,177	)	

1 "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.

12

Constant Currency
In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for all countries where the functional currency is not the U.S. dollar. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period's currency exchange rates, and the comparable prior year period's currency exchange rates. Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations and without the impact of acquisitions, if any, until the acquisitions are included in both comparable periods. The disclosure of constant currency amounts or results permits investors to understand better Walmart's underlying performance without the effects of currency exchange rate fluctuations or acquisitions.
The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the three months ended Apr. 30, 2015 and 2014 .

																			
 	 	Three Months Ended April 30,	
 	 	Walmart International		Consolidated	
(Dollars in millions)	 	2015	2014	Percent Change		2015	2014	Percent Change	
Total revenues:	 	 	 	 	 	 	 	 	
As reported	 	$	30,549		$	32,697		(6.6	)%		$	114,826		$	114,960		(0.1	)%	
Currency exchange rate fluctuations 1	 	3,280		—				3,280		—				
 	 	33,829		32,697				118,106		114,960				
Total revenues from acquisitions	 	—		—				—		—				
Constant currency total revenues	 	$	33,829		$	32,697		3.5	 %		$	118,106		$	114,960		2.7	 %	
 	 	 	 	 	 	 	 	 	
Net sales:	 		 					 			
As reported	 	$	30,278		$	32,424		(6.6	)%		$	114,002		$	114,167		(0.1	)%	
Currency exchange rate fluctuations 1	 	3,256		—				3,256		—				
 	 	33,534		32,424				117,258		114,167				
Net sales from acquisitions	 	—		—				—		—				
Constant currency net sales	 	$	33,534		$	32,424		3.4	 %		$	117,258		$	114,167		2.7	 %	
 	 		 					 			
Operating income:	 		 					 			
As reported	 	$	1,070		$	1,202		(11.0	)%		$	5,680		$	6,193		(8.3	)%	
Currency exchange rate fluctuations 1	 	133		—				133		—				
 	 	1,203		1,202				5,813		6,193				
Operating income (loss) from acquisitions	 	—		—				—		—				
Constant currency operating income	 	$	1,203		$	1,202		0.1	 %		$	5,813		$	6,193		(6.1	)%	
1 Excludes currency exchange rate fluctuations related to acquisitions until the acquisitions are included in both comparable periods.

13

Comparable Sales Measures and Sam's Club Measures
The following financial measures presented in the press release to which this reconciliation is attached are non-GAAP financial measures as defined by the SEC's rules:

•	the comparable club sales of the company's Sam's Club operating segment (Sam's Club) for the 13-week period ended May 1, 2015 and the 13-week period ended May 2, 2014 , the projected comparable club sales of Sam's Club for the 13 weeks ending July 31, 2015 and the comparable club sales of Sam's Club for the 13 weeks ended Aug. 1, 2014 , in each case calculated by excluding Sam's Club's fuel sales for such periods (the "Sam's Club Comparable Sales Measures");	

•	the net sales of Sam's Club for the three months ended Apr. 30, 2015 and the percentage increase in the net sales of Sam's Club for the three months ended Apr. 30, 2015 over the net sales of Sam's Club for the three months ended Apr. 30, 2014 in each case calculated by excluding Sam's Club's fuel sales for the relevant period; and	

•	the segment operating income of Sam's Club for the three months ended Apr. 30, 2015 , and the percentage increase in the segment operating income of Sam's Club for the three months ended Apr. 30, 2015 over the segment operating income of Sam's Club for the three months ended Apr. 30, 2014 , in each case calculated by excluding Sam's Club's fuel sales for the relevant period (collectively with the financial measures described in the immediately preceding bullet point, the "Sam's Club Measures").	

We believe the Sam's Club comparable club sales for the historical periods for which the corresponding Sam's Club Comparable Sales Measures are presented calculated by including fuel sales are the financial measures computed in accordance with GAAP most directly comparable to the respective Sam’s Club Comparable Sales Measures. We believe Sam's Club's projected comparable club sales for the 13-week period ending July 31, 2015 calculated by including fuel sales is the financial measure computed in accordance with GAAP most directly comparable to the projected comparable club sales of Sam's Club for the 13-week period ending July 31, 2015 calculated by excluding fuel sales. We believe the reported Sam's Club's net sales, percentage increase in net sales, segment operating income and percentage increase in segment operating income for the periods for which the corresponding Sam's Club Measures are presented are the most directly comparable financial measures computed in accordance with GAAP to the respective Sam’s Club Measures.

We believe that the presentation of the Sam's Club Comparable Sales Measures and the Sam's Club Measures provides useful information to investors regarding the company's financial condition and results of operations because that information permits investors to understand the effect of the fuel sales of Sam's Club, which are affected by the volatility of fuel prices, on Sam's Club's comparable club sales and on Sam's Club's net sales and operating income for the periods presented.

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