WAL MART STORES INC, 10-K filed on 3/21/2014
Annual Report
Document And Entity Information (USD $)
12 Months Ended
Jan. 31, 2014
Mar. 18, 2014
Jul. 31, 2013
Document And Entity Information [Abstract]
 
 
 
Entity Registrant Name
WAL MART STORES INC 
 
 
Entity Central Index Key
0000104169 
 
 
Current Fiscal Year End Date
--01-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-K 
 
 
Document period end date
Jan. 31, 2014 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
3,229,175,401 
 
Entity Well-known Seasoned Issuer
No 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 124,752,718,081 
Consolidated Statements Of Income (Audited) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2014
Jan. 31, 2013
Jan. 31, 2012
Revenues:
 
 
 
Net sales
$ 473,076 
$ 465,604 
$ 443,416 
Membership and other income
3,218 
3,047 
3,093 
Total revenues
476,294 
468,651 
446,509 
Costs and expenses:
 
 
 
Cost of sales
358,069 
352,297 
334,993 
Operating, selling, general and administrative expenses
91,353 
88,629 
85,025 
Operating income
26,872 
27,725 
26,491 
Interest:
 
 
 
Debt
2,072 
1,977 
2,034 
Capital leases
263 
272 
286 
Interest income
(119)
(186)
(161)
Interest, net
2,216 
2,063 
2,159 
Income from continuing operations before income taxes
24,656 
25,662 
24,332 
Current
8,619 
7,976 
6,722 
Deferred
(514)
(18)
1,202 
Provision for income taxes
8,105 
7,958 
7,924 
Income from continuing operations
16,551 
17,704 
16,408 
Income (loss) from discontinued operations, net of income taxes
144 
52 
(21)
Consolidated net income
16,695 
17,756 
16,387 
Less consolidated net income attributable to noncontrolling interest
(673)
(757)
(688)
Consolidated net income attributable to Walmart
$ 16,022 
$ 16,999 
$ 15,699 
Basic income per common share from continuing operations attributable to Walmart
$ 4.87 
$ 5.03 
$ 4.55 
Basic income per common share from discontinued operations attributable to Walmart
$ 0.03 
$ 0.01 
$ (0.01)
Basic net income per common share attributable to Walmart
$ 4.90 
$ 5.04 
$ 4.54 
Diluted net income per common share:
 
 
 
Diluted income per common share from continuing operations attributable to Walmart
$ 4.85 
$ 5.01 
$ 4.53 
Diluted income (loss) per common share from discontinued operations attributable to Walmart
$ 0.03 
$ 0.01 
$ (0.01)
Diluted net income per common share attributable to Walmart
$ 4.88 
$ 5.02 
$ 4.52 
Weighted-average common shares outstanding:
 
 
 
Basic
3,269 
3,374 
3,460 
Diluted
3,283 
3,389 
3,474 
Dividends declared per common share
$ 1.88 
$ 1.59 
$ 1.46 
Consolidated Statements Of Comprehensive Income (Audited) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2014
Jan. 31, 2013
Jan. 31, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Consolidated net income
$ 16,695 
$ 17,756 
$ 16,387 
Less consolidated net income attributable to nonredeemable noncontrolling interest
(606)
(684)
(627)
Less consolidated net income attributable to redeemable noncontrolling interest
(67)
(73)
(61)
Consolidated net income attributable to Walmart
16,022 
16,999 
15,699 
Other comprehensive income (loss), net of income taxes
 
 
 
Currency translation and other
(3,146)
1,042 
(2,758)
Derivative instruments
207 
136 
(67)
Minimum pension liability
153 
(166)
43 
Other comprehensive income (loss), net of income taxes
(2,786)
1,012 
(2,782)
Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest
311 
(138)
660 
Less other comprehensive income (loss) attributable to redeemable noncontrolling interest
66 
(51)
66 
Other comprehensive income (loss) attributable to Walmart
(2,409)
823 
(2,056)
Comprehensive income, net of income taxes
13,909 
18,768 
13,605 
Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest
(295)
(822)
33 
Less comprehensive income (loss) attributable to redeemable noncontrolling interest
(1)
(124)
Comprehensive income attributable to Walmart
$ 13,613 
$ 17,822 
$ 13,643 
Consolidated Balance Sheets (Audited) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2014
Jan. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 7,281 
$ 7,781 
Receivables, net
6,677 
6,768 
Inventories
44,858 
43,803 
Prepaid expenses and other
1,909 
1,551 
Current assets of discontinued operations
460 
37 
Total current assets
61,185 
59,940 
Property and equipment:
 
 
Property and equipment
173,089 
165,825 
Less accumulated depreciation
(57,725)
(51,896)
Property and equipment, net
115,364 
113,929 
Property under capital leases:
 
 
Property under capital leases
5,589 
5,899 
Less accumulated amortization
(3,046)
(3,147)
Property under capital leases, net
2,543 
2,752 
Goodwill
19,510 
20,497 
Other assets and deferred charges
6,149 
5,987 
Total assets
204,751 
203,105 
Current liabilities:
 
 
Short-term borrowings
7,670 
6,805 
Accounts payable
37,415 
38,080 
Accrued liabilities
18,793 
18,808 
Accrued income taxes
966 
2,211 
Long-term debt due within one year
4,103 
5,587 
Obligations under capital leases due within one year
309 
327 
Current liabilities of discontinued operations
89 
Total current liabilities
69,345 
71,818 
Long-term debt
41,771 
38,394 
Long-term obligations under capital leases
2,788 
3,023 
Deferred income taxes and other
8,017 
7,613 
Redeemable noncontrolling interest
1,491 
519 
Commitments and contingencies
   
   
Equity:
 
 
Common stock
323 
332 
Capital in excess of par value
2,362 
3,620 
Retained earnings
76,566 
72,978 
Accumulated other comprehensive income (loss)
(2,996)
(587)
Total Walmart shareholders' equity
76,255 
76,343 
Nonredeemable noncontrolling interest
5,084 
5,395 
Total equity
81,339 
81,738 
Total liabilities, redeemable noncontrolling interest and equity
$ 204,751 
$ 203,105 
Consolidated Statement Of Shareholders' Equity (Audited) (USD $)
In Millions
Total
Common stock
Capital in excess of par value
Retained earnings
Accumulated other comprehensive income (loss)
Total Walmart shareholders' equity
Nonredeemable Noncontrolling interest
Redeemable noncontrolling interest at Jan. 31, 2011
$ 408 
 
 
 
 
 
 
Balances at Jan. 31, 2011
71,247 
352 
3,577 
63,967 
646 
68,542 
2,705 
Balances, in shares at Jan. 31, 2011
 
3,516 
 
 
 
 
 
Consolidated net income
16,326 
 
 
15,699 
 
15,699 
627 
Consolidated net income, net of tax, attributable to redeemable noncontrolling interest
61 
 
 
 
 
 
 
Other comprehensive income (loss), net of income taxes
(2,716)
 
 
 
(2,056)
(2,056)
(660)
Other comprehensive income net of tax portion attributable to redeemable noncontrolling interest
(66)
 
 
 
 
 
 
Cash dividends declared
(5,048)
 
 
(5,048)
 
(5,048)
 
Purchase of Company stock (in shares)
 
(113)
 
 
 
 
 
Purchase of Company stock
(6,170)
(11)
(229)
(5,930)
 
(6,170)
 
Nonredeemable noncontrolling interest of acquired entity
 
 
 
 
 
 
1,988 
Noncontrolling interest, change in redemption value
1,988 
 
 
 
 
 
 
Other
134 
344 
 
348 
(214)
Other changes in redeemable noncontrolling interest
 
 
 
 
 
 
Other, in shares
 
15 
 
 
 
 
 
Redeemable noncontrolling interest at Jan. 31, 2012
404 
 
 
 
 
 
 
Balances at Jan. 31, 2012
75,761 
342 
3,692 
68,691 
(1,410)
71,315 
4,446 
Balances, in shares at Jan. 31, 2012
 
3,418 
 
 
 
 
 
Consolidated net income
17,683 
 
 
16,999 
 
16,999 
684 
Consolidated net income, net of tax, attributable to redeemable noncontrolling interest
73 
 
 
 
 
 
 
Other comprehensive income (loss), net of income taxes
961 
 
 
 
823 
823 
138 
Other comprehensive income net of tax portion attributable to redeemable noncontrolling interest
51 
 
 
 
 
 
 
Cash dividends declared
(5,361)
 
 
(5,361)
 
(5,361)
 
Purchase of Company stock (in shares)
 
(115)
 
 
 
 
 
Purchase of Company stock
(7,709)
(11)
(357)
(7,341)
 
(7,709)
 
Nonredeemable noncontrolling interest of acquired entity
 
 
 
 
 
 
469 
Noncontrolling interest, change in redemption value
469 
 
 
 
 
 
 
Other
(66)
285 
(10)
 
276 
(342)
Other changes in redeemable noncontrolling interest
(9)
 
 
 
 
 
 
Other, in shares
 
11 
 
 
 
 
 
Redeemable noncontrolling interest at Jan. 31, 2013
519 
 
 
 
 
 
 
Balances at Jan. 31, 2013
81,738 
332 
3,620 
72,978 
(587)
76,343 
5,395 
Balances, in shares at Jan. 31, 2013
 
3,314 
 
 
 
 
 
Consolidated net income
16,617 
 
 
16,022 
 
16,022 
595 
Consolidated net income, net of tax, attributable to redeemable noncontrolling interest
78 
 
 
 
 
 
 
Redeemable noncontrolling interest, change in redemption value
1,019 
 
 
 
 
 
 
Other comprehensive income (loss), net of income taxes
(2,720)
 
 
 
(2,409)
(2,409)
(311)
Other comprehensive income net of tax portion attributable to redeemable noncontrolling interest
(66)
 
 
 
 
 
 
Cash dividends declared
(6,139)
 
 
(6,139)
 
(6,139)
 
Purchase of Company stock (in shares)
 
(87)
 
 
 
 
 
Purchase of Company stock
(6,557)
(9)
(294)
(6,254)
 
(6,557)
 
Noncontrolling interest, change in redemption value
(1,019)
 
(1,019)
 
 
(1,019)
 
Other
(581)
55 
(41)
 
14 
(595)
Other changes in redeemable noncontrolling interest
(59)
 
 
 
 
 
 
Other, in shares
 
 
 
 
 
 
Redeemable noncontrolling interest at Jan. 31, 2014
1,491 
 
 
 
 
 
 
Balances at Jan. 31, 2014
$ 81,339 
$ 323 
$ 2,362 
$ 76,566 
$ (2,996)
$ 76,255 
$ 5,084 
Balances, in shares at Jan. 31, 2014
 
3,233 
 
 
 
 
 
Consolidated Statement Of Shareholders' Equity (Audited) (Parenthetical)
12 Months Ended
Jan. 31, 2014
Jan. 31, 2013
Jan. 31, 2012
Statement of Stockholders' Equity [Abstract]
 
 
 
Dividends declared per common share
$ 1.88 
$ 1.59 
$ 1.46 
Consolidated Statements Of Cash Flows (Audited) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2014
Jan. 31, 2013
Jan. 31, 2012
Cash flows from operating activities:
 
 
 
Consolidated net income
$ 16,695 
$ 17,756 
$ 16,387 
Income (loss) from discontinued operations, net of income taxes
(144)
(52)
21 
Income from continuing operations
16,551 
17,704 
16,408 
Adjustments to reconcile consolidated income from continuing operations to net cash provided by operating activities:
 
 
 
Depreciation and amortization
8,870 
8,478 
8,106 
Deferred income taxes
(279)
(133)
1,050 
Other operating activities
938 
602 
468 
Changes in certain assets and liabilities, net of effects of acquisitions:
 
 
 
Receivables, net
(566)
(614)
(796)
Inventories
(1,667)
(2,759)
(3,727)
Accounts payable
531 
1,061 
2,687 
Accrued liabilities
103 
271 
(935)
Accrued income taxes
(1,224)
981 
994 
Net cash provided by operating activities
23,257 
25,591 
24,255 
Cash flows from investing activities:
 
 
 
Payments for property and equipment
(13,115)
(12,898)
(13,510)
Proceeds from the disposal of property and equipment
727 
532 
580 
Investments and business acquisitions, net of cash acquired
(15)
(316)
(3,548)
Other investing activities
105 
71 
(131)
Net cash used in investing activities
(12,298)
(12,611)
(16,609)
Cash flows from financing activities:
 
 
 
Net change in short-term borrowings
911 
2,754 
3,019 
Proceeds from issuance of long-term debt
7,072 
211 
5,050 
Payments of long-term debt
(4,968)
(1,478)
(4,584)
Dividends paid
(6,139)
(5,361)
(5,048)
Dividends paid to and stock purchases of noncontrolling interest
(722)
(414)
(526)
Purchase of Company stock
(6,683)
(7,600)
(6,298)
Other financing activities
(488)
(84)
(71)
Net cash used in financing activities
(11,017)
(11,972)
(8,458)
Effect of exchange rates on cash and cash equivalents
(442)
223 
(33)
Net increase (decrease) in cash and cash equivalents
(500)
1,231 
(845)
Cash and cash equivalents at beginning of year
7,781 
6,550 
7,395 
Cash and cash equivalents at end of year
7,281 
7,781 
6,550 
Income taxes paid
8,641 
7,304 
5,899 
Interest paid
$ 2,362 
$ 2,262 
$ 2,346 
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Note 1. Summary of Significant Accounting Policies
General
Wal-Mart Stores, Inc. ("Walmart" or the "Company") operates retail stores in various formats under 71 banners around the world, aggregated into three reportable segments: Walmart U.S., Walmart International and Sam's Club. Walmart is committed to saving people money so they can live better. Walmart earns the trust of its customers every day by providing a broad assortment of quality merchandise and services at everyday low prices ("EDLP"), while fostering a culture that rewards and embraces mutual respect, integrity and diversity. EDLP is the Company's pricing philosophy under which it prices items at a low price every day so its customers trust that its prices will not change under frequent promotional activity.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Walmart and its subsidiaries as of and for the fiscal years ended January 31, 2014 ("fiscal 2014"), January 31, 2013 ("fiscal 2013") and January 31, 2012 ("fiscal 2012"). All material intercompany accounts and transactions have been eliminated in consolidation. Investments in unconsolidated affiliates, which are 50% or less owned and do not otherwise meet consolidation requirements, are accounted for primarily using the equity method. These investments are immaterial to the Company's Consolidated Financial Statements.
The Company's 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 January 2014 that materially affected the Consolidated Financial Statements.
In fiscal 2014, the Company corrected certain amounts pertaining to previous fiscal years as management determined they were not material, individually or in the aggregate, to any of the periods presented in the Company's Consolidated Financial Statements.
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles. Those principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
Cash and Cash Equivalents
The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. All credit card, debit card and electronic benefits transfer transactions that process in less than seven days are classified as cash and cash equivalents. The amounts due from banks for these transactions classified as cash and cash equivalents totaled $1.6 billion and $1.3 billion at January 31, 2014 and 2013, respectively. In addition, cash and cash equivalents included restricted cash of $654 million and $715 million at January 31, 2014 and 2013, respectively, which was primarily related to cash collateral holdings from various counterparties, as required by certain derivative and trust agreements.
The Company's cash balances are held in various locations around the world. Of the Company's $7.3 billion and $7.8 billion of cash and cash equivalents at January 31, 2014 and 2013, respectively, $5.8 billion and $5.2 billion, respectively, were held outside of the U.S. and were generally utilized to support liquidity needs in the Company's non-U.S. operations.
The Company employs financing strategies (e.g., global funding structures) in an effort to ensure that cash can be made available in the country in which it is needed with the minimum cost possible. Management does not believe it will be necessary to repatriate cash and cash equivalents held outside of the U.S. and anticipates its domestic liquidity needs will be met through other funding sources (ongoing cash flows generated from operations, external borrowings or both). Accordingly, management intends, with only certain exceptions, to continue to indefinitely reinvest the Company's cash and cash equivalents held outside of the U.S. in its foreign operations. When the income earned (either from operations or through global funding structures) and indefinitely reinvested outside of the U.S. is taxed at local country tax rates, which are generally lower than the U.S. statutory rate, the Company realizes an effective tax rate benefit. If the Company's intentions with respect to reinvestment were to change, most of the amounts held within the Company's foreign operations could be repatriated to the U.S., although any repatriation under current U.S. tax laws would be subject to U.S. federal income taxes, less applicable foreign tax credits. As of January 31, 2014 and 2013, cash and cash equivalents of approximately $1.9 billion may not be freely transferable to the U.S. due to local laws or other restrictions. Management does not expect local laws, other limitations or potential taxes on anticipated future repatriations of cash amounts held outside of the U.S. to have a material effect on the Company's overall liquidity, financial condition or results of operations.
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 select countries. The receivable balance from consumer credit products was $1.3 billion, net of a reserve for doubtful accounts of $119 million at January 31, 2014, compared to a receivable balance of $1.2 billion, net of a reserve for doubtful accounts of $115 million at January 31, 2013. These balances are included in receivables, net, in the Company's Consolidated Balance Sheets.
Inventories
The Company values inventories at the lower of cost or market as determined primarily by the retail method of accounting, using the last-in, first-out ("LIFO") method for substantially all of the Walmart U.S. segment's inventories. The Walmart International segment's inventories are primarily valued by the retail method of accounting, using the first-in, first-out ("FIFO") method. The retail 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 Sam's Club segment's inventories are valued based on the weighted-average cost using the LIFO method. At January 31, 2014 and January 31, 2013, the Company's inventories valued at LIFO approximate those inventories as if they were valued at FIFO.
Property and Equipment
Property and equipment are stated at cost. Gains or losses on disposition are recognized as earned or incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. The following table summarizes the Company's property and equipment balances and includes the estimated useful lives that are generally used to depreciate the assets on a straight-line basis:
 
 
 
 
Fiscal Years Ended January 31,
(Amounts in millions)
 
Estimated Useful Lives
 
2014
 
2013
Land
 
N/A
 
$
26,184

 
$
25,612

Buildings and improvements
 
3-40 years
 
95,488

 
90,686

Fixtures and equipment
 
3-25 years
 
42,971

 
40,903

Transportation equipment
 
3-15 years
 
2,785

 
2,796

Construction in progress
 
N/A
 
5,661

 
5,828

Property and equipment
 
 
 
$
173,089

 
$
165,825

Accumulated depreciation
 
 
 
(57,725
)
 
(51,896
)
Property and equipment, net
 
 
 
$
115,364

 
$
113,929


Leasehold improvements are depreciated over the shorter of the estimated useful life of the asset or the remaining expected lease term. Depreciation expense for property and equipment, including amortization of property under capital leases, for fiscal 2014, 2013 and 2012 was $8.8 billion, $8.4 billion and $8.1 billion, respectively. Interest costs capitalized on construction projects were $78 million, $74 million and $60 million in fiscal 2014, 2013 and 2012, respectively.
Long-Lived Assets
Long-lived assets are stated at cost. Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows, which is at the individual store or club level or, in certain circumstances, a market group of stores. Undiscounted cash flows expected to be generated by the related assets are estimated over the assets' useful lives based on updated projections. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique. Impairment charges of long-lived assets for fiscal 2014, 2013 and 2012 were not significant.
Goodwill and Other Acquired Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is allocated to the appropriate reporting unit when acquired. Other acquired intangible assets are stated at the fair value acquired as determined by a valuation technique commensurate with the intended use of the related asset. Goodwill and indefinite-lived intangible assets are not amortized; rather, they are evaluated for impairment annually and whenever events or changes in circumstances indicate that the value of the asset may be impaired. Definite-lived intangible assets are considered long-lived assets and are amortized on a straight-line basis over the periods that expected economic benefits will be provided.
Goodwill is evaluated for impairment using either a qualitative or quantitative approach for each of the Company's reporting units. Generally, a qualitative assessment is first performed to determine whether a quantitative goodwill impairment test is necessary. If management determines, after performing an assessment based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, or that a fair value of the reporting unit substantially in excess of the carrying amount cannot be assured, then a quantitative goodwill impairment test would be required. The quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. Fair value is measured based on the discounted cash flow method and relative market-based approaches.
For the reporting units that were tested using only the qualitative assessment, management determined that the fair value of each reporting unit is more likely than not greater than the carrying amount and, as a result, quantitative analyses were not required. For the reporting units tested using a quantitative impairment test, management determined the fair value of each reporting unit is greater than the carrying amount. Accordingly, the Company has not recorded any impairment charges related to goodwill.
The following table reflects goodwill activity, by reportable segment, for fiscal 2014 and 2013:
(Amounts in millions)
 
Walmart U.S.
 
Walmart
International
 
Sam's Club
 
Total
Balances as of February 1, 2012
 
$
439

 
$
19,899

 
$
313

 
$
20,651

Changes in currency translation and other
 

 
(65
)
 

 
(65
)
Purchase accounting adjustments for prior fiscal year acquisitions(1)
 
4

 
(532
)
 

 
(528
)
Acquisitions(2)
 

 
439

 

 
439

Balances as of January 31, 2013
 
443

 
19,741

 
313

 
20,497

Changes in currency translation and other
 

 
(1,000
)
 

 
(1,000
)
Acquisitions(2)
 
8

 
5

 

 
13

Balances as of January 31, 2014
 
$
451

 
$
18,746

 
$
313

 
$
19,510


(1)
Fiscal 2013 purchase accounting adjustments primarily relate to the finalization of the purchase price allocation for the fiscal 2012 acquisition of Massmart.
(2)
Goodwill recorded for fiscal 2014 and 2013 acquisitions relates to several acquisitions that are not significant, individually or in the aggregate, to the Company's Consolidated Financial Statements.
Indefinite-lived intangible assets are included in other assets and deferred charges in the Company's Consolidated Balance Sheets. These assets are evaluated for impairment based on their fair values using valuation techniques which are updated annually based on the most recent variables and assumptions. There were no impairment charges related to indefinite-lived intangible assets recorded for fiscal 2014, 2013 and 2012.
Self-Insurance Reserves
The Company uses a combination of insurance, self-insured retention and self-insurance for a number of risks, including, but not limited to, workers' compensation, general liability, vehicle liability, property and the Company's obligation for employee-related health care benefits. Liabilities relating to these claims associated with these risks are estimated by considering historical claims experience, frequency, severity, demographic factors and other actuarial assumptions, including incurred but not reported claims. In estimating its liability for such claims, the Company periodically analyzes its historical trends, including loss development, and applies appropriate loss development factors to the incurred costs associated with the claims. The Company also maintains stop-loss insurance coverage for workers' compensation and general liability of $5 million and $15 million, respectively, per occurrence, to limit exposure to certain risks.
Income Taxes
Income taxes are accounted for under the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases ("temporary differences"). Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date.
Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that a portion is not more likely than not to be realized. Many factors are considered when assessing whether it is more likely than not that the deferred tax assets will be realized, including recent cumulative earnings, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates.
In determining the provision for income taxes, an annual effective income tax rate is used based on annual income, permanent differences between book and tax income, and statutory income tax rates. Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur.
The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company records interest and penalties related to unrecognized tax benefits in interest expense and operating, selling, general and administrative expenses, respectively, in the Company's Consolidated Statements of Income. Refer to Note 9 for additional income tax disclosures.
Revenue Recognition    
Sales
The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise to the customer.
Membership Fee Revenue
The Company recognizes membership fee revenue both in the United States and internationally over the term of the membership, which is typically 12 months. The following table summarizes membership fee activity for fiscal 2014, 2013 and 2012:
 
 
Fiscal Years Ended January 31,
(Amounts in millions)
 
2014
 
2013
 
2012
Deferred membership fee revenue, beginning of year
 
$
575

 
$
559

 
$
542

Cash received from members
 
1,249

 
1,133

 
1,111

Membership fee revenue recognized
 
(1,183
)
 
(1,117
)
 
(1,094
)
Deferred membership fee revenue, end of year
 
$
641

 
$
575

 
$
559


Membership fee revenue is included in membership and other income in the Company's Consolidated Statements of Income. The deferred membership fee is included in accrued liabilities in the Company's Consolidated Balance Sheets.
Shopping Cards
Customer purchases of shopping cards are not recognized as revenue until the card is redeemed and the customer purchases merchandise using the shopping card. Shopping cards in the U.S. do not carry an expiration date; therefore, customers and members can redeem their shopping cards for merchandise indefinitely. Shopping cards in certain foreign countries where the Company does business may have expiration dates. A certain amount of shopping cards, both with and without expiration dates, will not be redeemed. Management estimates unredeemed shopping cards and recognizes revenue for these amounts over shopping card historical usage periods based on historical redemption rates. Management periodically reviews and updates its estimates of usage periods and redemption rates.
Financial and Other Services
The Company recognizes revenue from service transactions at the time the service is performed. Generally, revenue from services is classified as a component of net sales in the Company's Consolidated Statements of Income.
Cost of Sales
Cost of sales includes actual product cost, the cost of transportation to the Company's distribution facilities, stores and clubs from suppliers, the cost of transportation from the Company's distribution facilities to the stores, clubs and customers and the cost of warehousing for the Sam's Club segment and import distribution centers. Cost of sales is reduced by supplier payments that are not a reimbursement of specific, incremental and identifiable costs.
Payments from Suppliers
The Company receives consideration from suppliers for various programs, primarily volume incentives, warehouse allowances and reimbursements for specific programs such as markdowns, margin protection, advertising and supplier-specific fixtures. Payments from suppliers are accounted for as a reduction of cost of sales and are recognized in the Company's Consolidated Statements of Income when the related inventory is sold, except when the payment is a reimbursement of specific, incremental and identifiable costs.
Operating, Selling, General and Administrative Expenses
Operating, selling, general and administrative expenses include all operating costs of the Company, except cost of sales, as described above. As a result, the majority of the cost of warehousing and occupancy for the Walmart U.S. and Walmart International segments' distribution facilities is included in operating, selling, general and administrative expenses. Because the Company does not include most of the cost of its Walmart U.S. and Walmart International segments' distribution facilities in cost of sales, its gross profit and gross profit as a percentage of net sales ("gross profit margin") may not be comparable to those of other retailers that may include all costs related to their distribution facilities in cost of sales and in the calculation of gross profit.
Advertising Costs
Advertising costs are expensed as incurred and were $2.4 billion for fiscal 2014 and $2.3 billion for both fiscal 2013 and 2012. Advertising costs consist primarily of print, television and digital advertisements and are recorded in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. Reimbursements from suppliers that are for specific, incremental and identifiable advertising costs are recognized as a reduction of advertising expenses in operating, selling, general and administrative expenses.
Leases
The Company estimates the expected term of a lease by assuming the exercise of renewal options where an economic penalty exists that would preclude the abandonment of the lease at the end of the initial non-cancelable term and the exercise of such renewal is at the sole discretion of the Company. The expected term is used in the determination of whether a store or club lease is a capital or operating lease and in the calculation of straight-line rent expense. Additionally, the useful life of leasehold improvements is limited by the expected lease term or the economic life of the asset, whichever is shorter. If significant expenditures are made for leasehold improvements late in the expected term of a lease and renewal is reasonably assured, the useful life of the leasehold improvement is limited to the end of the renewal period or economic life of the asset, whichever is shorter.
Rent abatements and escalations are considered in the calculation of minimum lease payments in the Company's capital lease tests and in determining straight-line rent expense for operating leases.
Pre-Opening Costs
The cost of start-up activities, including organization costs, related to new store openings, store remodels, relocations, expansions and conversions are expensed as incurred and included in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. Pre-opening costs totaled $338 million, $316 million and $308 million for fiscal 2014, 2013 and 2012, respectively.
Currency Translation
The assets and liabilities of all international subsidiaries are translated from the respective local currency to the U.S. dollar using exchange rates at the balance sheet date. Related translation adjustments are recorded as a component of accumulated other comprehensive income (loss). The income statements of international subsidiaries are translated from the respective local currencies to the U.S. dollar using average exchange rates for the period covered by the income statements.
Reclassifications
Certain reclassifications have been made to previous fiscal year amounts and balances to conform to the presentation in the current fiscal year. These reclassifications did not impact consolidated operating income or net income. Additionally, certain segment asset and expense allocations have been reclassified among segments in the current period. See Note 14 for further discussion of the Company's segments.
Net Income Per Common Share
Net Income Per Common Share
Note 2. Net Income Per Common Share
Basic income per common share from continuing operations attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period. Diluted income per common share from continuing operations attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of outstanding stock options and other share-based awards. The Company did not have significant stock options or other share-based awards outstanding that were antidilutive and not included in the calculation of diluted income per common share from continuing operations attributable to Walmart for fiscal 2014, 2013 and 2012.
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted income per common share from continuing operations attributable to Walmart:
 
 
Fiscal Years Ended January 31,
(Amounts in millions, except per share data)
 
2014
 
2013
 
2012
Numerator
 
 
 
 
 
 
Income from continuing operations
 
$
16,551

 
$
17,704

 
$
16,408

Less income from continuing operations attributable to noncontrolling interest
 
(633
)
 
(741
)
 
(674
)
Income from continuing operations attributable to Walmart
 
$
15,918

 
$
16,963

 
$
15,734

 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
3,269

 
3,374

 
3,460

Dilutive impact of stock options and other share-based awards
 
14

 
15

 
14

Weighted-average common shares outstanding, diluted
 
3,283

 
3,389

 
3,474

 
 
 
 
 
 
 
Income per common share from continuing operations attributable to Walmart
 
 
 
 
 
 
Basic
 
$
4.87

 
$
5.03

 
$
4.55

Diluted
 
4.85

 
5.01

 
4.53

Shareholder's Equity
Shareholder's Equity
Note 3. Shareholders' Equity
Share-Based Compensation
The Company has awarded share-based compensation to associates and nonemployee directors of the Company. The compensation expense recognized for all plans was $388 million, $378 million and $355 million for fiscal 2014, 2013 and 2012, respectively. Share-based compensation expense is included in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. The total income tax benefit recognized for share-based compensation was $145 million, $142 million and $134 million for fiscal 2014, 2013 and 2012, respectively. The following table summarizes the Company's share-based compensation expense by award type:
 
Fiscal Years Ended January 31,
(Amounts in millions)
2014
 
2013
 
2012
Restricted stock and performance share awards
$
141

 
$
152

 
$
142

Restricted stock rights
224

 
195

 
184

Stock options
23

 
31

 
29

Share-based compensation expense
$
388

 
$
378

 
$
355


The Company's shareholder-approved Stock Incentive Plan of 2010 (the "Plan") became effective June 4, 2010 and amended and restated the Company's Stock Incentive Plan of 2005. The Plan was established to grant stock options, restricted (non-vested) stock, performance shares and other equity compensation awards for which 210 million shares of common stock issued or to be issued under the Plan have been registered under the Securities Act of 1933, as amended. The Company believes that such awards serve to align the interests of its associates with those of its shareholders.
The Plan's award types are summarized as follows:
Restricted Stock and Performance Share Awards. Restricted stock awards are for shares that vest based on the passage of time and include restrictions related to employment. Performance share awards vest based on the passage of time and achievement of performance criteria and may range from 0% to 150% of the original award amount. Vesting periods for these awards are generally between three and five years. Restricted stock and performance share awards may be settled or deferred in stock and are accounted for as equity in the Company's Consolidated Balance Sheets. The fair value of restricted stock awards is determined on the date of grant and is expensed ratably over the vesting period. The fair value of performance share awards is determined on the date of grant using the Company's stock price discounted for the expected dividend yield through the vesting period and is recognized over the vesting period.
Restricted Stock Rights. Restricted stock rights provide rights to Company stock after a specified service period; 50% vest three years from the grant date and the remaining 50% vest five years from the grant date. The fair value of each restricted stock right is determined on the date of grant using the stock price discounted for the expected dividend yield through the vesting period and is recognized ratably over the vesting period. The expected dividend yield is based on the anticipated dividends over the vesting period. The weighted-average discount for the dividend yield used to determine the fair value of restricted stock rights granted in fiscal 2014, 2013 and 2012 was 10.3%, 12.2% and 11.7%, respectively.
Stock Options. Stock options allow the associate to buy a specified number of shares at a set price. Options granted generally vest over five years and have a contractual term of ten years. Options may include restrictions related to employment, satisfaction of performance conditions or other conditions. Under the Plan and prior plans, substantially all stock options have been granted with an exercise price equal to the market price of the Company's stock at the date of grant.
In addition to the Plan, the Company's subsidiary in the United Kingdom, ASDA, has two other stock option plans for certain ASDA colleagues. A combined 49 million shares of the Company's common stock were registered under the Securities Act of 1933, as amended, for issuance upon the exercise of stock options granted under the Colleague Share Ownership Plan 1999 (the "CSOP") and the ASDA Sharesave Plan 2000 ("Sharesave Plan").
CSOP. The CSOP grants have either a three- or six-year vesting period. The CSOP options may be exercised during the two months immediately following the vesting date.
Sharesave Plan. The Sharesave Plan grants options at 80% of the Company's average stock price for the three days preceding the grant date. The Sharesave Plan options vest after three years and may generally be exercised up to six months after the vesting date.
The following table shows the activity for each award type during fiscal 2014:
 
 
Restricted Stock and Performance Share Awards(2)
 
Restricted Stock Rights
 
Stock Options(1)
(Shares in thousands)
 
Shares
 
Weighted-
Average
Grant-Date
Fair Value
Per Share
 
Shares
 
Weighted-
Average
Grant-Date
Fair Value
Per Share
 
Shares
 
Weighted-
Average
Exercise Price
Per Share
Outstanding at February 1, 2013
 
12,598

 
$
57.37

 
17,839

 
$
49.79

 
10,240

 
$
47.58

Granted
 
3,688

 
76.05

 
5,095

 
77.75

 
1,846

 
56.63

Vested/exercised
 
(2,445
)
 
55.31

 
(3,998
)
 
55.33

 
(3,421
)
 
48.88

Forfeited or expired
 
(3,890
)
 
61.32

 
(1,151
)
 
60.38

 
(415
)
 
59.43

Outstanding at January 31, 2014
 
9,951

 
$
63.26

 
17,785

 
$
55.87

 
8,250

 
$
48.47

Exercisable at January 31, 2014
 
 
 
 
 
 
 
 
 
3,119

 
$
48.45

(1)
Includes stock option awards granted under the Plan, the CSOP and the Sharesave Plan.
(2)
Assumes payout rate at 100% for Performance Share Awards.
As of January 31, 2014, the unrecognized compensation cost for restricted stock and performance share awards, restricted stock rights and stock option awards was $200 million, $497 million and $26 million, respectively, and is expected to be recognized over a weighted-average period of 2.0 years, 2.1 years and 2.8 years, respectively. Additionally, as of January 31, 2014, the weighted-average remaining life for stock options outstanding and stock options exercisable was 5.8 years and 2.2 years, respectively, and had an aggregate intrinsic value of $209 million and $82 million, respectively.
The following table includes additional information related to restricted stock and performance share awards and restricted stock rights: 
 
Fiscal Years Ended January 31,
(Amounts in millions)
2014
 
2013
 
2012
Fair value of restricted stock and performance share awards vested
$
116

 
$
155

 
$
134

Fair value of restricted stock rights vested
189

 
168

 
178


The following table includes additional information related to stock option awards: 
 
Fiscal Years Ended January 31,
(Amounts in millions)
2014
 
2013
 
2012
Fair value of stock options vested
$
16

 
$
33

 
$
50

Proceeds from stock options exercised
108

 
320

 
420

Intrinsic value of stock options exercised
99

 
207

 
91


The fair value of each stock option award is estimated on the date of grant using the Black-Scholes-Merton option valuation model that uses various assumptions for inputs. The Company uses expected volatilities and risk-free interest rates that correlate with the expected term of the option when estimating an option's fair value. The following table provides the weighted-average assumptions used to estimate the fair values of the Company's stock options granted in fiscal 2014, 2013 and 2012:
 
Fiscal Years Ended January 31,
 
2014
 
2013
 
2012
Dividend yield(1)
2.5
%
 
2.8
%
 
2.9
%
Volatility(2)
15.2
%
 
16.2
%
 
17.6
%
Risk-free interest rate(3)
0.4
%
 
0.6
%
 
1.3
%
Expected life in years(4)
3.3

 
3.0

 
3.0

Weighted-average fair value of options granted
$
15.27

 
$
10.57

 
$
9.61

(1)
Expected dividend yield is based on the anticipated dividends over the vesting period.
(2)
Expected volatility is based on historical volatility of the Company's stock.
(3)
Risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant.
(4)
Expected life in years is based on historical exercise and expiration activity of grants with similar vesting periods.
Share Repurchase Program
From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Board of Directors. On June 6, 2013, the Company's Board of Directors replaced the previous $15.0 billion share repurchase program, which had approximately $712 million of remaining authorization for share repurchases as of that date, with a new $15.0 billion share repurchase program, which was announced on June 7, 2013. As was the case with the replaced share repurchase program, the current share repurchase program has no expiration date or other restrictions limiting the period over which the Company can make share repurchases. At January 31, 2014, 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 cash paid for share repurchases for fiscal 2014, 2013 and 2012:
 
 
Fiscal Years Ended January 31,
(Amounts in millions, except per share data)
 
2014
 
2013
 
2012
Total number of shares repurchased
 
89.1

 
113.2

 
115.3

Average price paid per share
 
$
74.99

 
$
67.15

 
$
54.64

Total cash paid for share repurchases
 
$
6,683

 
$
7,600

 
$
6,298

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Note 4. Accumulated Other Comprehensive Income (Loss)
Effective fiscal 2014, the Company adopted accounting guidance that requires, on a prospective basis, separate disclosure of significant items reclassified out of accumulated other comprehensive income (loss) by component. The following table provides the fiscal 2014, 2013 and 2012 changes in the composition of total accumulated other comprehensive income (loss), including the amounts reclassified out of accumulated other comprehensive income (loss) by component for fiscal 2014:
 
 
Currency Translation
and Other
 
Derivative
Instruments
 
Minimum Pension
Liability
 
Total
(Amounts in millions and net of income taxes)
 
 
 
 
 
 
 
 
Balances as of January 31, 2011
 
$
1,226

 
$
60

 
$
(640
)
 
$
646

Other comprehensive income (loss)
 
(2,032
)
 
(67
)
 
43

 
(2,056
)
Balances as of January 31, 2012
 
(806
)
 
(7
)
 
(597
)
 
(1,410
)
Other comprehensive income (loss)
 
853

 
136

 
(166
)
 
823

Balances as of January 31, 2013
 
47

 
129

 
(763
)
 
(587
)
Other comprehensive income (loss) before reclassifications
 
(2,769
)
 
194

 
149

 
(2,426
)
Amounts reclassified from accumulated other comprehensive income (loss)
 

 
13

 
4

 
17

Balances as of January 31, 2014
 
$
(2,722
)
 
$
336

 
$
(610
)
 
$
(2,996
)
Amounts reclassified from accumulated other comprehensive income (loss) for derivative instruments are generally included in interest, net, in the Company's Consolidated Statements of Income, and the amounts related to the minimum pension liability are included in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income.
The Company's unrealized net gains and losses on net investment hedges, included in the currency translation and other category of accumulated other comprehensive income (loss), were not significant as of January 31, 2014 or January 31, 2013.
Accrued Liabilities
Accrued Liabilities
Note 5. Accrued Liabilities
The Company's accrued liabilities consist of the following:
 
 
As of January 31,
(Amounts in millions)
 
2014
 
2013
Accrued wages and benefits(1)
 
$
4,652

 
$
5,059

Self-insurance(2)
 
3,477

 
3,373

Accrued taxes(3)
 
2,554

 
2,851

Other(4)
 
8,110

 
7,525

Total accrued liabilities
 
$
18,793

 
$
18,808


(1)
Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans.
(2)
Self-insurance consists of all insurance-related liabilities, such as workers' compensation, general liability, vehicle liability, property liability and employee-related health care benefits.
(3)
Accrued taxes include accrued payroll, value added, sales and miscellaneous other taxes.
(4)
Other accrued liabilities consist of various items such as maintenance, utilities, advertising and interest.
Short-term Borrowings and Long-term Debt (Notes)
Short-term Borrowings and Long-term Debt
Note 6. Short-term Borrowings and Long-term Debt
Short-term borrowings consist of commercial paper and lines of credit. Short-term borrowings outstanding at January 31, 2014 and 2013 were $7.7 billion and $6.8 billion, respectively. The following table includes additional information related to the Company's short-term borrowings for fiscal 2014, 2013 and 2012:
 
 
Fiscal Years Ended January 31,
(Amounts in millions)
 
2014
 
2013
 
2012
Maximum amount outstanding at any month-end
 
$
13,318

 
$
8,740

 
$
9,594

Average daily short-term borrowings
 
8,971

 
6,007

 
6,040

Weighted-average interest rate
 
0.1
%
 
0.1
%
 
0.1
%

The Company has various lines of credit, committed with 24 financial institutions, totaling $17.3 billion as of January 31, 2014 and with 27 financial institutions, totaling $18.1 billion as of January 31, 2013. The lines of credit, including drawn and undrawn amounts, are summarized in the following table:
 
 
Fiscal Years Ended January 31,
 
 
2014
 
2013
(Amounts in millions)
 
Available
 
Drawn
 
Undrawn
 
Available
 
Drawn
 
Undrawn
Five-year credit facility(1)
 
$
6,000

 
$

 
$
6,000

 
$
6,258

 
$

 
$
6,258

364-day revolving credit facility(2)
 
9,400

 

 
9,400

 
10,000

 

 
10,000

Stand-by letters of credit(3)
 
1,883

 
1,836

 
47

 
1,871

 
1,868

 
3

Total
 
$
17,283

 
$
1,836

 
$
15,447

 
$
18,129

 
$
1,868

 
$
16,261

(1)
In June 2013, the Company renewed and extended its existing five-year credit facility, which is used to support its commercial paper program.
(2)
In June 2013, the Company renewed and extended its existing 364-day revolving credit facility, which is used to support its commercial paper program.
(3)
In June 2013, the Company renewed the stand-by letters of credit, which are used to support various potential and actual obligations.
The committed lines of credit mature at various times between June 2014 and June 2018, carry interest rates generally ranging between LIBOR plus 10 basis points and LIBOR plus 75 basis points, and incur commitment fees ranging between 1.5 and 4.0 basis points. In conjunction with the lines of credit listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to the maximum amount of secured debt.
Additionally, the Company had trade letters of credit outstanding totaling $2.8 billion and $2.7 billion at January 31, 2014 and 2013, respectively.
The Company's long-term debt, which includes the fair value instruments further discussed in Note 8, consists of the following:
 
 
 
 
January 31, 2014
 
January 31, 2013
(Amounts in millions)
 
Maturity Dates
By Fiscal Year
 
Amount
 
Average Rate(1)
 
Amount
 
Average Rate(1)
Unsecured debt
 
 
 

 

 

 

Fixed
 
2015-2044
 
$
35,500

 
4.3%
 
$
32,476

 
4.6%
Variable
 
2015
 
500

 
5.4%
 
500

 
5.5%
Total U.S. dollar denominated
 
 
 
36,000

 

 
32,976

 

Fixed
 
2030
 
1,356

 
4.9%
 
1,358

 
4.9%
Variable
 
 
 

 

 

 

Total Euro denominated
 
 
 
1,356

 

 
1,358

 

Fixed
 
2031-2039
 
5,770

 
5.3%
 
5,550

 
5.3%
Variable
 
 
 

 

 

 

Total Sterling denominated
 
 
 
5,770

 

 
5,550

 

Fixed
 
2015-2021
 
1,490

 
1.3%
 
1,942

 
1.4%
Variable
 
2015-2016
 
457

 
0.7%
 
1,056

 
0.7%
Total Yen denominated
 
 
 
1,947

 

 
2,998

 

Total unsecured debt
 
 
 
45,073

 

 
42,882

 

Total other debt (in USD)(2)
 
2015-2044
 
801

 

 
1,099

 

Total debt
 
 
 
45,874

 

 
43,981

 

Less amounts due within one year
 
 
 
(4,103
)
 

 
(5,587
)
 

Long-term debt
 
 
 
$
41,771

 

 
$
38,394

 

(1)
The average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end interest rates. Interest costs are also impacted by certain derivative financial instruments described in Note 8.
(2)
A portion of other debt at January 31, 2014 and 2013 includes secured debt in the amount of $572 million and $627 million, respectively, which was collateralized by property that had an aggregate carrying amount of approximately $471 million and $599 million, respectively.
At January 31, 2014 and 2013, the Company had $500 million in debt with embedded put options. The issuance of money market puttable reset securities in the amount of $500 million is structured to be remarketed in connection with the annual reset of the interest rate. If, for any reason, the remarketing of the notes does not occur at the time of any interest rate reset, the holders of the notes must sell, and the Company must repurchase, the notes at par. Accordingly, this issuance has been classified as long-term debt due within one year in the Company's Consolidated Balance Sheets. Annual maturities of long-term debt during the next five years and thereafter are as follows:
(Amounts in millions)
Annual
Fiscal Year
Maturity
2015
$
4,103

2016
4,480

2017
2,396

2018
1,107

2019
3,531

Thereafter
30,257

Total
$
45,874

Debt Issuances
Information on significant long-term debt issued during fiscal 2014, is as follows: 
Issue Date
 
Maturity Date
 
Interest Rate
 
Principal Amount
April 11, 2013
 
April 11, 2016
 
0.600%
 
$
1,000

April 11, 2013
 
April 11, 2018
 
1.125%
 
1,250

April 11, 2013
 
April 11, 2023
 
2.550%
 
1,750

April 11, 2013
 
April 11, 2043
 
4.000%
 
1,000

October 2, 2013
 
December 15, 2018
 
1.950%
 
1,000

October 2, 2013
 
October 2, 2043
 
4.750%
 
750

Total
 
 
 
 
 
$
6,750


The aggregate net proceeds from these long-term debt issuances were approximately $6.7 billion, which were used to pay down and refinance existing debt and for other general corporate purposes. The Company also received additional aggregate net proceeds of approximately $0.4 billion from other, smaller long-term debt issuances by several of its international operations, which were used primarily to refinance existing debt.
On April 11, 2013, the Company issued $1.0 billion principal amount of its 0.600% Notes due 2016, $1.25 billion principal amount of its 1.125% Notes due 2018, $1.75 billion principal amount of its 2.550% Notes due 2023 and $1.0 billion principal amount of its 4.000% Notes due 2043. The aggregate net proceeds from these note issuances were approximately $5.0 billion. The notes of each series require semi-annual interest payments on April 11 and October 11 of each year, with the first interest payment made on October 11, 2013. Unless previously purchased and canceled, the Company will repay the notes of each series at 100% of the principal amount, together with accrued and unpaid interest thereon, at maturity. However, the Company has the right to redeem any or all of the notes that mature on April 11, 2023, at any time on or after January 11, 2023, and to redeem any or all of the notes that mature on April 11, 2043, at any time on or after October 11, 2042, in each case at 100% of the principal amount, together with the accrued and unpaid interest thereon to, but excluding, the date of redemption. The notes of each series are senior, unsecured obligations of the Company and are not convertible or exchangeable.
On October 2, 2013, the Company issued $1.0 billion principal amount of its 1.950% Notes due 2018 and $750 million principal amount of its 4.750% Notes due 2043. The aggregate net proceeds from these note issuances were approximately $1.7 billion. The 1.950% Notes due 2018 series requires semi-annual interest payments on June 15 and December 15 of each year, with the first interest payment commencing on June 15, 2014. The 4.750% Notes due 2043 series require semi-annual interest payments on October 2 and April 2 of each year, commencing on April 2, 2014. Unless previously purchased and canceled, the Company will repay the notes of each series at 100% of the principal amount, together with accrued and unpaid interest thereon, at maturity. However, the Company has the right to redeem any or all of the notes that mature on October 2, 2043, at any time on or after April 2, 2043, at 100% of the principal amount, together with the accrued and unpaid interest thereon to, but excluding, the date of redemption. The notes of each series are senior, unsecured obligations of the Company and are not convertible or exchangeable.
The Company did not issue any significant amounts of long-term debt during fiscal 2013.
Fair Value Measurements
Fair Value Measurements
Note 7. Fair Value Measurements
The Company records and discloses certain financial and non-financial assets and liabilities at their 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. A liability's fair value is defined as 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 January 31, 2014 and 2013, the notional amounts and fair values of these derivatives were as follows:
 
January 31, 2014
 
January 31, 2013
(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
$
1,000

 
$
5

 
$
3,445

 
$
60

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as net investment hedges
1,250

 
97

 
1,250

 
223

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges
3,004

 
453

 
2,944

 
230

Receive variable-rate, pay fixed-rate interest rate swaps designated as cash flow hedges
457

 
(2
)
 
1,056

 
(8
)
Receive variable-rate, pay fixed-rate forward starting interest rate swaps designated as cash flow hedges
2,500

 
166

 
5,000

 
10

Total
$
8,211

 
$
719

 
$
13,695

 
$
515


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 fiscal years ended January 31, 2014, or 2013.
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 January 31, 2014 and 2013, was as follows: 
 
 
January 31, 2014
 
January 31, 2013
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
45,874

 
$
50,757

 
$
43,981

 
$
50,664

Derivative Financial Instruments
Derivative Financial Instruments
Note 8. 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 $641 million and $413 million at January 31, 2014 and January 31, 2013, 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 these counterparties, the Company is also required to post collateral if the Company's net derivative liability position exceeds $150 million with any counterparty. The Company did not have any cash collateral posted with counterparties at January 31, 2014 or January 31, 2013. 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 income (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 accounting, are recorded at fair value with unrealized gains or losses reported in earnings during the period of the change.
Fair Value Instruments
The Company is a party to receive fixed-rate, pay variable-rate interest rate swaps that the Company uses to hedge the fair value of fixed-rate debt. The notional amounts are used to measure interest to be paid or received and do not represent the Company's exposure due to credit loss. The Company's interest rate swaps that receive fixed-interest rate payments and pay variable-interest rate payments are designated as fair value hedges. As the specific terms and notional amounts of the derivative instruments match those of the fixed-rate debt being hedged, the derivative instruments are assumed to be perfectly effective hedges. Changes in the fair values of these derivative instruments are recorded in earnings, but are offset by corresponding changes in the fair values of the hedged items, also recorded in earnings, and, accordingly, do not impact the Company's Consolidated Statements of Income. These fair value instruments will mature on dates ranging from February 2014 to May 2014.
Net Investment Instruments
The Company is a party to cross-currency interest rate swaps that the Company uses to hedge its net investments. The agreements are contracts to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. All changes in the fair value of these instruments are recorded in accumulated other comprehensive income (loss), offsetting the currency translation adjustment of the related investment that is also recorded in accumulated other comprehensive income (loss). These instruments will mature on dates ranging from October 2023 to February 2030.
The Company has issued foreign-currency-denominated long-term debt as hedges of net investments of certain of its foreign operations. These foreign-currency-denominated long-term debt issuances are designated and qualify as nonderivative hedging instruments. Accordingly, the foreign currency translation of these debt instruments is recorded in accumulated other comprehensive income (loss), offsetting the foreign currency translation adjustment of the related net investments that is also recorded in accumulated other comprehensive income (loss). At January 31, 2014 and January 31, 2013, the Company had ¥200 billion and ¥275 billion, respectively, of outstanding long-term debt designated as a hedge of its net investment in Japan, as well as outstanding long-term debt of £2.5 billion at January 31, 2014 and January 31, 2013, that was designated as a hedge of its net investment in the United Kingdom. These nonderivative net investment hedges will mature on dates ranging from August 2014 to January 2039.
Cash Flow Instruments
The Company is a party to receive variable-rate, pay fixed-rate interest rate swaps that the Company uses to hedge the interest rate risk of certain non-U.S. denominated debt. The swaps are designated as cash flow hedges of interest expense risk. Amounts reported in accumulated other comprehensive income (loss) related to these derivatives are reclassified from accumulated other comprehensive income (loss) to earnings as interest is expensed for the Company's variable-rate debt, converting the variable-rate interest expense into fixed-rate interest expense. These cash flow instruments will mature on dates ranging from August 2014 to July 2015.
The Company is also a party to receive fixed-rate, pay fixed-rate cross-currency interest rate swaps to hedge the currency exposure associated with the forecasted payments of principal and interest of certain non-U.S. denominated debt. The swaps are designated as cash flow hedges of the currency risk related to payments on the non-U.S. denominated debt. The effective portion of changes in the fair value of derivatives designated as cash flow hedges of foreign exchange risk is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The hedged items are recognized foreign currency-denominated liabilities that are remeasured at spot exchange rates each period, and the assessment of effectiveness (and measurement of any ineffectiveness) is based on total changes in the related derivative's cash flows. As a result, the amount reclassified into earnings each period includes an amount that offsets the related transaction gain or loss arising from that remeasurement and the adjustment to earnings for the period's allocable portion of the initial spot-forward difference associated with the hedging instrument. These cash flow instruments will mature on dates ranging from September 2029 to March 2034.
The Company also uses forward starting receive variable-rate, pay fixed-rate swaps ("forward starting swaps"), to hedge its exposure to the variability in future cash flows due to changes in the LIBOR swap rate for 10- and 30-year debt issuances forecasted to occur in the future. Amounts reported in accumulated other comprehensive income (loss) related to these derivatives will be reclassified from accumulated other comprehensive income (loss) to earnings as interest expense is incurred on the forecasted hedged fixed-rate debt, adjusting interest expense to reflect the fixed-rate entered into by the forward starting swaps. These cash flow instruments hedge forecasted interest payments to be made through May 2044. These forward starting swaps will be terminated on the day the hedged forecasted debt issuances occur, but no later than October 31, 2014, if the hedged forecasted debt issuances do not occur. The Company terminated forward starting swaps with an aggregate notional amount of $2.5 billion by making a cash payment to the related counterparties of $74 million in connection with the April 2013 debt issuances described in Note 6. The $74 million loss was recorded in accumulated other comprehensive income (loss) and will be reclassified to earnings over the life of the related debt, effectively adjusting interest expense to reflect the fixed-rate entered into by the forward starting swaps.
Financial Statement Presentation
Although subject to master netting arrangements, the Company does not offset derivative assets and derivative liabilities in its Consolidated Balance Sheets. Derivative instruments with an unrealized gain are recorded in the Company's Consolidated Balance Sheets as either current or non-current assets, based on maturity date, and those hedging instruments with an unrealized loss are recorded as either current or non-current liabilities, based on maturity date.
The Company's derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified as follows in the Company's Consolidated Balance Sheets:
 
January 31, 2014
 
January 31, 2013
(Amounts in millions)
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
 
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
Derivative instruments
 
 
 
 
 
 
 
 
 
 
 
Prepaid expenses and other
$
5

 
$

 
$

 
$
29

 
$

 
$

Other assets and deferred charges

 
97

 
619

 
31

 
223

 
327

Derivative asset subtotals
$
5

 
$
97

 
$
619

 
$
60

 
$
223

 
$
327

 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities
$

 
$

 
$
1

 
$

 
$

 
$
4

Deferred income taxes and other

 

 
1

 

 

 
91

Derivative liability subtotals
$

 
$

 
$
2

 
$

 
$

 
$
95

 
 
 
 
 
 
 
 
 
 
 
 
Nonderivative hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Long-term debt due within one year
$

 
$
973

 
$

 
$

 
$
818

 
$

Long-term debt

 
5,095

 

 

 
6,145

 

Nonderivative hedge liability subtotals
$

 
$
6,068

 
$

 
$

 
$
6,963

 
$


Gains and losses related to the Company's derivatives primarily relate to interest rate hedges, which are included in interest, net, in the Company's Consolidated Statements of Income. Amounts related to the Company's derivatives expected to be reclassified from accumulated other comprehensive income (loss) to net income during the next 12 months are not significant.
Taxes
Income Tax Disclosure [Text Block]
Note 9. Taxes
Income from Continuing Operations
The components of income from continuing operations before income taxes are as follows:
 
Fiscal Years Ended January 31,
(Amounts in millions)
2014
 
2013
 
2012
U.S.
$
19,412

 
$
19,352

 
$
18,685

Non-U.S.
5,244

 
6,310

 
5,647

Total income from continuing operations before income taxes
$
24,656

 
$
25,662

 
$
24,332


A summary of the provision for income taxes is as follows:
 
Fiscal Years Ended January 31,
(Amounts in millions)
2014
 
2013
 
2012
Current:

 

 

U.S. federal
$
6,377

 
$
5,611

 
$
4,596

U.S. state and local
719

 
622

 
743

International
1,523

 
1,743

 
1,383

Total current tax provision
8,619

 
7,976

 
6,722

Deferred:

 

 

U.S. federal
(72
)
 
38

 
1,444

U.S. state and local
37

 
(8
)
 
57

International
(479
)
 
(48
)
 
(299
)
Total deferred tax expense (benefit)
(514
)
 
(18
)
 
1,202

Total provision for income taxes
$
8,105

 
$
7,958

 
$
7,924


Effective Income Tax Rate Reconciliation
The Company's effective income tax rate is typically lower than the U.S. statutory tax rate primarily because of benefits from lower-taxed global operations, including the use of global funding structures and certain U.S. tax credits as further discussed in the "Cash and Cash Equivalents" section of the Company's significant accounting policies in Note 1. The Company's non-U.S. income is generally subject to local country tax rates that are below the 35% U.S. statutory tax rate. Certain non-U.S. earnings have been indefinitely reinvested outside the U.S. and are not subject to current U.S. income tax. A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pretax income from continuing operations is as follows:
 
Fiscal Years Ended January 31,
 
2014
 
2013
 
2012
U.S. statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
U.S. state income taxes, net of federal income tax benefit
2.0
 %
 
1.7
 %
 
2.0
 %
Income taxed outside the U.S.
(2.8
)%
 
(2.6
)%
 
(2.8
)%
Net impact of repatriated international earnings
(1.4
)%
 
(2.5
)%
 
(0.3
)%
Other, net
0.1
 %
 
(0.6
)%
 
(1.3
)%
Effective income tax rate
32.9
 %
 
31.0
 %
 
32.6
 %

Deferred Taxes
The significant components of the Company's deferred tax account balances are as follows:
 
 
January 31,
(Amounts in millions)
 
2014
 
2013
Deferred tax assets:
 

 

Loss and tax credit carryforwards
 
$
3,566

 
$
3,525

Accrued liabilities
 
2,986

 
2,683

Share-based compensation
 
126

 
204

Other
 
1,573

 
1,500

Total deferred tax assets
 
8,251

 
7,912

Valuation allowances
 
(1,801
)
 
(2,225
)
Deferred tax assets, net of valuation allowance
 
6,450

 
5,687

Deferred tax liabilities:
 

 

Property and equipment
 
6,295

 
5,830

Inventories
 
1,641

 
1,912

Other
 
1,827

 
1,157

Total deferred tax liabilities
 
9,763

 
8,899

Net deferred tax liabilities
 
$
3,313

 
$
3,212


The deferred taxes are classified as follows in the Company's Consolidated Balance Sheets:
  
 
January 31,
(Amounts in millions)
 
2014
 
2013
Balance Sheet classification:
 
 
 
 
Assets:
 
 
 
 
Prepaid expenses and other
 
$
822

 
$
520

Other assets and deferred charges
 
1,151

 
757

Asset subtotals
 
1,973

 
1,277

Liabilities:
 
 
 
 
Accrued liabilities
 
176

 
116

Deferred income taxes and other
 
5,110

 
4,373

Liability subtotals
 
5,286

 
4,489

Net deferred tax liabilities
 
$
3,313

 
$
3,212


Unremitted Earnings
United States income taxes have not been provided on accumulated but undistributed earnings of the Company's international subsidiaries of approximately $21.4 billion and $19.2 billion as of January 31, 2014 and 2013, respectively, as the Company intends to permanently reinvest these amounts outside of the United States. However, if any portion were to be distributed, the related U.S. tax liability may be reduced by foreign income taxes paid on those earnings. Determination of the unrecognized deferred tax liability related to these undistributed earnings is not practicable because of the complexities with its hypothetical calculation. The Company provides deferred or current income taxes on earnings of international subsidiaries in the period that the Company determines it will remit those earnings.
Net Operating Losses, Tax Credit Carryforwards and Valuation Allowances
At January 31, 2014, the Company had net operating loss and capital loss carryforwards totaling approximately $6.1 billion. Of these carryforwards, approximately $3.6 billion will expire, if not utilized, in various years through 2024. The remaining carryforwards have no expiration. At January 31, 2014, the Company had foreign tax credit carryforwards of $1.8 billion, which will expire in various years through 2024, if not utilized.
The recoverability of these future tax deductions and credits is evaluated by assessing the adequacy of future expected taxable income from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent management does not consider it more likely than not that a deferred tax asset will be realized, a valuation allowance is established. If a valuation allowance has been established and management subsequently determines that it is more likely than not that the deferred tax assets will be realized, the valuation allowance is released.
As of January 31, 2014 and 2013, the Company had valuation allowances recorded of approximately $1.8 billion and $2.2 billion, respectively, on deferred tax assets associated primarily with net operating loss carryforwards for which management has determined it is more likely than not that the deferred tax asset will not be realized. The $0.4 billion net decrease in the valuation allowance during fiscal 2014 related to releases arising from the use of deferred tax assets, changes in judgment regarding the future realization of deferred tax assets, increases from certain net operating losses and deductible temporary differences arising in fiscal 2014, decreases due to operating and capital loss expirations and fluctuations in currency exchange rates. Management believes that it is more likely than not that the remaining net deferred tax assets will be fully realized.
Uncertain Tax Positions
The benefits of uncertain tax positions are recorded in the Company's Consolidated Financial Statements only after determining a more likely than not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities.
As of January 31, 2014 and 2013, the amount of unrecognized tax benefits related to continuing operations was $763 million and $818 million, respectively. The amount of unrecognized tax benefits that would affect the Company's effective income tax rate was $698 million and $741 million for January 31, 2014 and 2013, respectively.
A reconciliation of unrecognized tax benefits from continuing operations was as follows:
 
Fiscal Years Ended January 31,
(Amounts in millions)
2014
 
2013
 
2012
Unrecognized tax benefits, beginning of year
$
818

 
$
611

 
$
795

Increases related to prior year tax positions
41

 
88

 
87

Decreases related to prior year tax positions
(112
)
 
(232
)
 
(162
)
Increases related to current year tax positions
133

 
431

 
56

Settlements during the period
(117
)
 
(80
)
 
(161
)
Lapse in statutes of limitations

 

 
(4
)
Unrecognized tax benefits, end of year
$
763

 
$
818

 
$
611


The Company classifies interest and penalties related to uncertain tax benefits as interest expense and as operating, selling, general and administrative expenses, respectively. During fiscal 2014, 2013 and 2012, the Company recognized interest and penalty expense (benefit) related to uncertain tax positions of $(7) million, $2 million and $(19) million, respectively. As of January 31, 2014 and 2013, accrued interest related to uncertain tax positions of $40 million and $139 million, respectively, was recorded in the Company's Consolidated Balance Sheets. The Company did not have any accrued penalties recorded for income taxes as of January 31, 2014 or 2013.
During the next twelve months, it is reasonably possible that tax audit resolutions could reduce unrecognized tax benefits by between $50 million and $250 million, either because the tax positions are sustained on audit or because the Company agrees to their disallowance. The Company is focused on resolving tax audits as expeditiously as possible. As a result of these efforts, unrecognized tax benefits could potentially be reduced beyond the provided range during the next twelve months. The Company does not expect any change to have a significant impact to its Consolidated Financial Statements.
The Company remains subject to income tax examinations for its U.S. federal income taxes generally for fiscal 2012 through 2014. The Company also remains subject to income tax examinations for international income taxes for fiscal 2006 through 2014, and for U.S. state and local income taxes generally for the fiscal years ended 2009 through 2014.
Other Taxes
The Company is subject to tax examinations for payroll, value added, sales-based and other non-income taxes. A number of these examinations are ongoing in various jurisdictions, including Brazil. In certain cases, the Company has received assessments from the taxing authorities in connection with these examinations. Where a probable loss has occurred, the Company has made accruals, which are reflected in the Company's Consolidated Financial Statements. While the possible losses or range of possible losses associated with these matters are individually immaterial, a group of related matters, if decided adversely to the Company, could result in a liability material to the Company's Consolidated Financial Statements.
Contingencies
Contingencies
Note 10. Contingencies
Legal Proceedings