WAL MART STORES INC, 10-Q filed on 12/2/2015
Quarterly Report
Document And Entity Information
9 Months Ended
Oct. 31, 2015
Nov. 30, 2015
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-Q
Document Period End Date
Oct. 31, 2015
Document Fiscal Year Focus
2016
Document Fiscal Period Focus
Q3
Amendment Flag
false
Entity Common Stock, Shares Outstanding
3,201,893,234
Entity Well-known Seasoned Issuer
Yes
Entity Voluntary Filers
No
Entity Current Reporting Status
Yes
Condensed Consolidated Statements of Income (Unaudited)(USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Oct. 31, 2015
Oct. 31, 2014
Revenues:
Net sales
$116,598
$118,076
$349,930
$351,579
Membership and other income
810
925
2,533
2,507
Total revenues
117,408
119,001
352,463
354,086
Costs and expenses:
Cost of sales
87,446
89,247
263,985
265,971
Operating, selling, general and administrative expenses
24,248
23,489
71,015
68,917
Operating income
5,714
6,265
17,463
19,198
Interest:
Debt
509
561
1,555
1,601
Capital lease and financing obligations
64
115
428
237
Interest income
(21)
(20)
(64)
(76)
Interest, net
552
656
1,919
1,762
Income from continuing operations before income taxes
5,162
5,609
15,544
17,436
Provision for income taxes
1,748
1,783
5,212
5,810
Income from continuing operations
3,414
3,826
10,332
11,626
Income from discontinued operations, net of income taxes
0
0
0
285
Consolidated net income
3,414
3,826
10,332
11,911
Consolidated net income attributable to noncontrolling interest
(110)
(115)
(212)
(514)
Consolidated net income attributable to Walmart
$3,304
$3,711
$10,120
$11,397
Basic net income per common share:
Basic income per common share from continuing operations attributable to Walmart
$1.03
$1.15
$3.14
$3.47
Basic income per common share from discontinued operations attributable to Walmart
$0.00
$0.00
$0.00
$0.06
Basic net income per common share attributable to Walmart
$1.03
$1.15
$3.14
$3.53
Diluted net income per common share:
Diluted income per common share from continuing operations attributable to Walmart
$1.03
$1.15
$3.13
$3.46
Diluted income per common share from discontinued operations attributable to Walmart
$0.00
$0.00
$0.00
$0.05
Diluted net income per common share attributable to Walmart
$1.03
$1.15
$3.13
$3.51
Weighted-average common shares outstanding:
Basic
3,210
3,229
3,221
3,231
Diluted
3,219
3,240
3,231
3,243
Dividends declared per common share
$0.00
$0.00
$1.96
$1.92
Condensed Consolidated Statements of Comprehensive Income (Unaudited)(USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Oct. 31, 2015
Oct. 31, 2014
Consolidated net income
$3,414
$3,826
$10,332
$11,911
Less consolidated net income attributable to nonredeemable noncontrolling interest
(110)
(115)
(212)
(514)
Consolidated net income attributable to Walmart
3,304
3,711
10,120
11,397
Other comprehensive income (loss), net of income taxes
Currency translation and other
(2,694)
(2,509)
(3,941)
(1,429)
Minimum pension liability
(1)
10
73
16
Other comprehensive income (loss), net of income taxes
(2,569)
(2,491)
(3,842)
(1,477)
Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest
298
197
351
222
Other comprehensive income (loss) attributable to Walmart
(2,271)
(2,294)
(3,491)
(1,255)
Comprehensive income, net of income taxes
845
1,335
6,490
10,434
Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest
188
82
139
(292)
Comprehensive income attributable to Walmart
1,033
1,417
6,629
10,142
Net investment hedging
Other comprehensive income (loss), net of income taxes
Derivative instruments
182
169
101
101
Cash flow hedging
Other comprehensive income (loss), net of income taxes
Derivative instruments
$(56)
$(161)
$(75)
$(165)
Condensed Consolidated Balance Sheets (Unaudited)(USD $)
In Millions, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
Oct. 31, 2014
Current assets:
Cash and cash equivalents
$6,990
$9,135
$6,718
Receivables, net
5,012
6,778
6,091
Inventories
50,706
45,141
51,501
Prepaid expenses and other
2,404
2,224
1,531
Total current assets
65,112
63,278
65,841
Property and equipment:
Property and equipment
176,660
177,395
177,494
Less accumulated depreciation
(65,825)
(63,115)
(62,519)
Property and equipment, net
110,835
114,280
114,975
Property under capital lease and financing obligations:
Property under capital lease and financing obligations
10,948
5,239
5,632
Less accumulated amortization
(4,827)
(2,864)
(3,115)
Property under capital lease and financing obligations, net
6,121
2,375
2,517
Goodwill
17,051
18,102
18,888
Other assets and deferred charges
6,025
5,455
5,447
Total assets
205,144
203,490
207,668
Current liabilities:
Short-term borrowings
4,960
1,592
6,019
Accounts payable
40,553
38,410
39,656
Dividends payable
1,589
0
1,553
Accrued liabilities
19,499
19,152
18,773
Accrued income taxes
587
1,021
383
Long-term debt due within one year
2,746
4,791
4,854
Capital lease and financing obligations due within one year
558
287
302
Total current liabilities
70,492
65,253
71,540
Long-term debt
38,617
40,889
41,519
Long-term capital lease and financing obligations
5,581
2,606
2,767
Deferred income taxes and other
7,824
8,805
7,789
Commitments and contingencies
  
  
  
Equity:
Common stock
321
323
323
Capital in excess of par value
2,006
2,462
2,223
Retained earnings
87,903
85,777
80,814
Accumulated other comprehensive income (loss)
(10,659)
(7,168)
(4,251)
Total Walmart shareholders' equity
79,571
81,394
79,109
Nonredeemable noncontrolling interest
3,059
4,543
4,944
Total equity
82,630
85,937
84,053
Total liabilities and equity
$205,144
$203,490
$207,668
Condensed Consolidated Statement Of Shareholders' Equity (Unaudited)(USD $)
In Millions, unless otherwise specified
Total
Common stock
Capital in excess of par value
Retained earnings
Accumulated other comprehensive income (loss)
Total Walmart shareholders' equity
Nonredeemable noncontrolling interest
Balances at Jan. 31, 2015
$85,937
$323
$2,462
$85,777
$(7,168)
$81,394
$4,543
Balances, in shares at Jan. 31, 2015
3,228
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidated net income
10,332
10,120
10,120
212
Other comprehensive income (loss), net of income taxes
(3,842)
(3,491)
(3,491)
(351)
Cash dividends declared
(6,314)
(6,314)
(6,314)
Purchase of Company stock
(1,720)
(2)
(46)
(1,672)
(1,720)
Purchase of Company stock (in shares)
(23)
Dividends declared to noncontrolling interest
(794)
(794)
Other, in shares
5
Other
(969)
(410)
(8)
(418)
(551)
Balances at Oct. 31, 2015
$82,630
$321
$2,006
$87,903
$(10,659)
$79,571
$3,059
Balances, in shares at Oct. 31, 2015
3,210
Consolidated Statement Of Shareholders' Equity (Parenthetical)
0 Months Ended 3 Months Ended 9 Months Ended
Feb. 19, 2015
Oct. 31, 2015
Oct. 31, 2014
Oct. 31, 2015
Oct. 31, 2014
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share
$1.96
$0.00
$0.00
$1.96
$1.92
Condensed Consolidated Statements of Cash Flows (Unaudited)(USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Cash flows from operating activities:
Consolidated net income
$10,332
$11,911
Income from discontinued operations, net of income taxes
0
(285)
Income from continuing operations
10,332
11,626
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization
7,023
6,881
Deferred income taxes
(987)
(233)
Other operating activities
644
592
Changes in certain assets and liabilities, net of effects of acquisitions:
Receivables, net
783
459
Inventories
(6,637)
(6,929)
Accounts payable
3,603
3,068
Accrued liabilities
662
583
Accrued income taxes
(418)
(577)
Net cash provided by operating activities
15,005
15,470
Cash flows from investing activities:
Payments for property and equipment
(8,223)
(8,243)
Proceeds from the disposal of property and equipment
362
459
Proceeds from the disposal of certain operations
246
671
Other investing activities
48
(44)
Net cash used in investing activities
(7,567)
(7,157)
Cash flows from financing activities:
Net change in short-term borrowings
3,537
(1,843)
Proceeds from issuance of long-term debt
41
5,120
Payments of long-term debt
(4,422)
(3,883)
Dividends paid
(4,728)
(4,639)
Purchase of Company stock
(1,720)
(1,015)
Dividends paid to noncontrolling interest
(609)
(401)
Purchase of noncontrolling interest
(890)
(1,804)
Other financing activities
(468)
(393)
Net cash used in financing activities
(9,259)
(8,858)
Effect of exchange rates on cash and cash equivalents
(324)
(18)
Net increase (decrease) in cash and cash equivalents
(2,145)
(563)
Cash and cash equivalents at beginning of year
9,135
7,281
Cash and cash equivalents at end of period
$6,990
$6,718
Summary of Significant Accounting Policies
Basis of presentation
Accounting Policies
Basis of Presentation
The Condensed Consolidated Financial Statements of Wal-Mart Stores, Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2015. Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Condensed Consolidated Financial Statements are based on a fiscal year ending on January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of October 2015 related to the operations consolidated using a lag that materially affected the Condensed Consolidated Financial Statements.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Certain prior period amounts have been reclassified to conform to the current period's presentation. These reclassifications did not impact the Company's operating income or consolidated net income.
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 $944 million, net of a reserve for doubtful accounts of $71 million at October 31, 2015, compared to a receivable balance of $1.2 billion, net of a reserve for doubtful accounts of $114 million at January 31, 2015. These balances are included in receivables, net, in the Company's Condensed Consolidated Balance Sheets.
Inventories
The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting, using the last-in, first-out ("LIFO") method for substantially all of the Walmart U.S. segment's inventories. The inventory at the Walmart International segment is valued primarily by the retail inventory method of accounting, using the first-in, first-out ("FIFO") method. The retail inventory method of accounting results in inventory being valued at the lower of cost or market, since permanent markdowns are immediately recorded as a reduction of the retail value of inventory. The inventory at the Sam's Club segment is valued based on the weighted-average cost using the LIFO method. At October 31, 2015 and January 31, 2015, the Company's inventories valued at LIFO approximated those inventories as if they were valued at FIFO.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to reporting periods beginning after December 15, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016.  The Company will adopt this ASU on February 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. Management is currently evaluating this standard, including which transition approach to use, and does not expect this ASU to materially impact the Company's consolidated net income, financial position or cash flows.
In April 2015, FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost. FASB issued ASU 2015-03 to simplify the presentation of debt issuance costs related to a recognized debt liability to present the debt issuance costs as a direct deduction from the carrying value of the debt liability rather than showing the debt issuance costs as a deferred charge on the balance sheet. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted. Management elected to early adopt this new guidance effective for the first quarter of fiscal year 2016, and has applied the changes retrospectively to all periods presented. Adoption of this ASU did not materially impact the Company's consolidated net income, financial position or cash flows.
Net Income Per Common Share
Net income per common share
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 share-based awards. The Company did not have significant share-based awards outstanding that were antidilutive and not included in the calculation of diluted income per common share from continuing operations attributable to Walmart for the three and nine months ended October 31, 2015 and 2014.
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:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions, except per share data)
 
2015
 
2014
 
2015
 
2014
Numerator
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
3,414

 
$
3,826

 
$
10,332

 
$
11,626

Income from continuing operations attributable to noncontrolling interest
 
(110
)
 
(115
)
 
(212
)
 
(410
)
Income from continuing operations attributable to Walmart
 
$
3,304

 
$
3,711

 
$
10,120

 
$
11,216

 
 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
3,210

 
3,229

 
3,221

 
3,231

Dilutive impact of stock options and other share-based awards
 
9

 
11

 
10

 
12

Weighted-average common shares outstanding, diluted
 
3,219

 
3,240

 
3,231

 
3,243


 
 
 
 
 
 
 
 
Income per common share from continuing operations attributable to Walmart
 
 
 
 
 
 
 
 
Basic
 
$
1.03

 
$
1.15

 
$
3.14

 
$
3.47

Diluted
 
1.03

 
1.15

 
3.13

 
3.46

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The following table provides the changes in the composition of total accumulated other comprehensive income (loss) for the nine months ended October 31, 2015:
(Amounts in millions and net of income taxes)
 
Currency Translation
and Other
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension Liability
 
Total
Balances as of February 1, 2015
 
$
(7,011
)
 
$
656

 
$
(134
)
 
$
(679
)
 
$
(7,168
)
Other comprehensive income (loss) before reclassifications
 
(3,590
)
 
101

 
(104
)
 
81

 
(3,512
)
Amounts reclassified from accumulated other comprehensive income (loss)
 

 

 
29

 
(8
)
 
21

Balances as of October 31, 2015
 
$
(10,601
)
 
$
757

 
$
(209
)
 
$
(606
)
 
$
(10,659
)
Amounts reclassified from accumulated other comprehensive income (loss) for derivative instruments are recorded in interest, net, in the Company's Condensed Consolidated Statements of Income, and the amounts for the minimum pension liability are recorded in operating, selling, general and administrative expenses in the Company's Condensed Consolidated Statements of Income.
Long-term Debt
Long-term debt
Long-term Debt
The following table provides the changes in the Company's long-term debt for the nine months ended October 31, 2015:
(Amounts in millions)
 
Long-term debt due within one year
 
Long-term debt
 
Total
Balances as of February 1, 2015
 
$
4,791

 
$
40,889

 
$
45,680

Proceeds from long-term debt
 

 
41

 
41

Repayments of long-term debt
 
(4,422
)
 

 
(4,422
)
Reclassifications of long-term debt
 
2,000

 
(2,000
)
 

Other
 
377

 
(313
)
 
64

Balances as of October 31, 2015
 
$
2,746

 
$
38,617

 
$
41,363


Issuances
The Company did not have any material long-term debt issuances during the nine months ended October 31, 2015, but received proceeds from a number of small, immaterial long-term debt issuances by several of its non-U.S. operations.
Maturities
During the nine months ended October 31, 2015, the following long-term debt matured and was repaid:
(Amounts in millions)
 
 
 
 
 
 
 
 
Maturity Date
 
Principal Amount
 
Fixed vs. Floating
 
Interest Rate
 
Repayment
April 1, 2015
 
750 USD
 
Fixed
 
2.875%
 
$
750

July 1, 2015
 
750 USD
 
Fixed
 
4.500%
 
750

July 8, 2015
 
750 USD
 
Fixed
 
2.250%
 
750

July 28, 2015
 
30,000 JPY
 
Floating
 
Floating
 
243

July 28, 2015
 
60,000 JPY
 
Fixed
 
0.940%
 
487

October 25, 2015
 
1,250 USD
 
Fixed
 
1.500%
 
1,250

 
 
 
 
 
 
 
 
$
4,230


The Company also repaid other, smaller long-term debt as it matured in several of its non-U.S. operations.
Fair Value Measurements
Fair value measurements
Fair Value Measurements
The Company records and discloses certain financial and non-financial assets and liabilities at fair value. The fair value of an asset is the price at which the asset could be sold in an ordinary transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. The fair value of a liability is the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor. Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
Level 1: observable inputs such as quoted prices in active markets;
Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.
Recurring Fair Value Measurements
The Company holds derivative instruments that are required to be measured at fair value on a recurring basis. The fair values are the estimated amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward curves. As of October 31, 2015 and January 31, 2015, the notional amounts and fair values of these derivatives were as follows:
 
October 31, 2015
 
January 31, 2015
(Amounts in millions)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges
$
5,000

 
$
91

 
$
500

 
$
12

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

 
192

 
1,250

 
207

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges
4,294

 
(370
)
 
4,329

 
(317
)
Receive variable-rate, pay fixed-rate interest rate swaps designated as cash flow hedges

 

 
255

 
(1
)
Total
$
10,544

 
$
(87
)
 
$
6,334

 
$
(99
)

Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company did not record any significant impairment charges to assets measured at fair value on a nonrecurring basis during the three and nine months ended October 31, 2015, or for the fiscal year ended January 31, 2015.
Other Fair Value Disclosures
The Company records cash and cash equivalents and short-term borrowings at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities.
The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the Company's current incremental borrowing rate for similar types of borrowing arrangements. The carrying value and fair value of the Company's long-term debt as of October 31, 2015 and January 31, 2015, are as follows: 
 
 
October 31, 2015
 
January 31, 2015
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
41,363

 
$
47,280

 
$
45,680

 
$
56,237

Derivative Financial Instruments
Derivative financial instruments
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 $341 million and $323 million at October 31, 2015 and January 31, 2015, 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 October 31, 2015 or January 31, 2015. 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 Condensed Consolidated Statements of Income. These fair value instruments will mature on dates ranging from October 2020 to April 2024.
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 October 31, 2015 and January 31, 2015, the Company had ¥10 billion and ¥100 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 October 31, 2015 and January 31, 2015 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 July 2020 to January 2039.
Cash Flow Instruments
The Company was a party to receive variable-rate, pay fixed-rate interest rate swaps that matured in July 2015. The Company used these interest rate swaps to hedge the interest rate risk of certain non-U.S. denominated debt. The swaps were designated as cash flow hedges of interest expense risk. Amounts reported in accumulated other comprehensive income (loss) related to these derivatives were reclassified from accumulated other comprehensive income (loss) to earnings as interest was expensed for the Company's variable-rate debt, converting the variable-rate interest expense into fixed-rate interest expense.
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 re-measured 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 re-measurement 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 April 2022 to March 2034.
Financial Statement Presentation
Although subject to master netting arrangements, the Company does not offset derivative assets and derivative liabilities in its Condensed Consolidated Balance Sheets. Derivative instruments with an unrealized gain are recorded in the Company's Condensed 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 Condensed Consolidated Balance Sheets:
 
October 31, 2015
 
January 31, 2015
(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
$

 
$

 
$

 
$

 
$

 
$

Other assets and deferred charges
91

 
192

 
292

 
12

 
207

 
293

Derivative asset subtotals
$
91

 
$
192

 
$
292

 
$
12

 
$
207

 
$
293

 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities
$

 
$

 
$

 
$

 
$

 
$
1

Deferred income taxes and other

 

 
662

 

 

 
610

Derivative liability subtotals
$

 
$

 
$
662

 
$

 
$

 
$
611

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

 
$

 
$

 
$

 
$
766

 
$

Long-term debt

 
3,940

 

 

 
3,850

 

Nonderivative hedge liability subtotals
$

 
$
3,940

 
$

 
$

 
$
4,616

 
$


Gains and losses related to the Company's derivatives primarily relate to interest rate hedges, which are recorded in interest, net, in the Company's Condensed 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.
Share Repurchases
Share repurchases
Share Repurchases
From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. On October 13, 2015, the Board of Directors replaced the previous $15.0 billion share repurchase program, which had approximately $8.6 billion of remaining authorization for share repurchases as of that date, with a new $20.0 billion share repurchase program. All of the share repurchases the Company made in the nine months ended October 31, 2015 were made on the share repurchase program that was replaced on October 13, 2015. As was the case with the replaced share repurchase program, the new share repurchase program has no expiration date or other restrictions limiting the period over which the Company can make share repurchases. At October 31, 2015, authorization for $20.0 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 trade date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for the nine months ended October 31, 2015 and 2014:
 
 
Nine Months Ended October 31,
(Amounts in millions, except per share data)
 
2015
 
2014
Total number of shares repurchased
 
23.2

 
13.4

Average price paid per share
 
$
74.20

 
$
75.82

Total amount paid for share repurchases
 
$
1,720

 
$
1,015

Common Stock Dividends
Dividends payable
Common Stock Dividends
Dividends Declared
On February 19, 2015, the Board of Directors approved the fiscal 2016 annual dividend at $1.96 per share, an increase from the fiscal 2015 dividend of $1.92 per share. For fiscal 2016, the annual dividend will be paid in four quarterly installments of $0.49 per share, according to the following record and payable dates:
Record Date
  
Payable Date
March 13, 2015
  
April 6, 2015
May 8, 2015
  
June 1, 2015
August 7, 2015
  
September 8, 2015
December 4, 2015
  
January 4, 2016


The dividend installments payable on April 6, 2015June 1, 2015 and September 8, 2015, were paid as scheduled.
Contingencies
Contingencies
Contingencies
Legal Proceedings
The Company is involved in a number of legal proceedings. The Company has made accruals with respect to these matters, where appropriate, which are reflected in the Company's Condensed Consolidated Financial Statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. However, where a liability is reasonably possible and may be material, such matters have been disclosed. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company's shareholders.
Unless stated otherwise, the matters, or groups of related matters, discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in a liability material to the Company's financial condition or results of operations.
Wage-and-Hour Class Action: The Company is a defendant in Braun/Hummel v. Wal-Mart Stores, Inc., a class-action lawsuit commenced in March 2002 in the Court of Common Pleas in Philadelphia, Pennsylvania. The plaintiffs allege that the Company failed to pay class members for all hours worked and prevented class members from taking their full meal and rest breaks. On October 13, 2006, a jury awarded back-pay damages to the plaintiffs of approximately $78 million on their claims for off-the-clock work and missed rest breaks. The jury found in favor of the Company on the plaintiffs' meal-period claims. On November 14, 2007, the trial judge entered a final judgment in the approximate amount of $188 million, which included the jury's back-pay award plus statutory penalties, prejudgment interest and attorneys' fees. By operation of law, post-judgment interest accrues on the judgment amount at the rate of six percent per annum from the date of entry of the judgment, which was November 14, 2007, until the judgment is paid, unless the judgment is set aside on appeal. On December 7, 2007, the Company filed its Notice of Appeal. On June 10, 2011, the Pennsylvania Superior Court of Appeals issued an opinion upholding the trial court's certification of the class, the jury's back pay award, and the awards of statutory penalties and prejudgment interest, but reversing the award of attorneys' fees. On September 9, 2011, the Company filed a Petition for Allowance of Appeal with the Pennsylvania Supreme Court. On July 2, 2012, the Pennsylvania Supreme Court granted the Company's Petition. On December 15, 2014, the Pennsylvania Supreme Court issued its opinion affirming the Superior Court of Appeals' decision. At that time, the Company recorded expenses of $249 million for the judgment amount and post-judgment interest incurred to date. The Company will continue to accrue for the post-judgment interest until final resolution. However, the Company continues to believe it has substantial factual and legal defenses to the claims at issue, and, on March 13, 2015, the Company filed a petition for writ of certiorari with the U.S. Supreme Court. On April 20, 2015, the plaintiffs filed their response in opposition and on May 4, 2015, the Company filed its reply brief.
ASDA Equal Value Claims: ASDA Stores, Ltd. ("ASDA"), a wholly-owned subsidiary of the Company, is a defendant in over 6,000 "equal value" claims that are proceeding before an Employment Tribunal in Manchester (the "Employment Tribunal") in the United Kingdom ("UK") on behalf of current and former ASDA store employees, who allege that the work performed by female employees in ASDA's retail stores is of equal value in terms of, among other things, the demands of their jobs to that of male employees working in ASDA's warehouse and distribution facilities, and that the disparity in pay between these different job positions is not objectively justified. Claimants are requesting differential back pay based on higher wage rates in the warehouse and distribution facilities and those higher wage rates on a prospective basis as part of these equal value proceedings. ASDA believes that further claims may be asserted in the near future. On March 23, 2015, ASDA asked the Employment Tribunal to stay all proceedings, contending that the High Court, which is the superior first instance civil court in the UK that is headquartered in the Royal Courts of Justice in the City of London, is the more convenient and appropriate forum to hear these claims. On March 23, 2015, ASDA also asked the Employment Tribunal to "strike out" substantially all of the claims for failing to comply with Employment Tribunal rules. On July 23, 2015, the Employment Tribunal denied ASDA's requests to stay all proceedings and to "strike out" substantially all of the claims. On September 2, 2015, ASDA filed a Notice of Appeal with the Employment Appeal Tribunal seeking to appeal both rulings. On October 14, 2015, the Employment Appeal Tribunal denied ASDA's requests for an appeal. At present, the Company cannot predict the number of such claims that may be filed, and cannot reasonably estimate any loss or range of loss that may arise from these proceedings. The Company believes it has substantial factual and legal defenses to these claims, and intends to defend the claims vigorously.
FCPA Investigation and Related Matters
The Audit Committee (the "Audit Committee") of the Board of Directors of the Company, which is composed solely of independent directors, is conducting an internal investigation into, among other things, alleged violations of the U.S. Foreign Corrupt Practices Act ("FCPA") and other alleged crimes or misconduct in connection with foreign subsidiaries, including Wal-Mart de México, S.A.B. de C.V. ("Walmex"), and whether prior allegations of such violations and/or misconduct were appropriately handled by the Company. The Audit Committee and the Company have engaged outside counsel from a number of law firms and other advisors who are assisting in the on-going investigation of these matters.
The Company is also conducting a voluntary global review of its policies, practices and internal controls for FCPA compliance. The Company is engaged in strengthening its global anti-corruption compliance program through appropriate remedial anti-corruption measures.  In November 2011, the Company voluntarily disclosed that investigative activity to the U.S. Department of Justice (the "DOJ") and the Securities and Exchange Commission (the "SEC"). Since the implementation of the global review and the enhanced anti-corruption compliance program, the Audit Committee and the Company have identified or been made aware of additional allegations regarding potential violations of the FCPA. When such allegations are reported or identified, the Audit Committee and the Company, together with their third party advisors, conduct inquiries and when warranted based on those inquiries, open investigations. Inquiries or investigations regarding allegations of potential FCPA violations have been commenced in a number of foreign markets where the Company operates, including, but not limited to, Brazil, China and India.
The Company has been informed by the DOJ and the SEC that it is also the subject of their respective investigations into possible violations of the FCPA. The Company is cooperating with the investigations by the DOJ and the SEC. A number of federal and local government agencies in Mexico have also initiated investigations of these matters. Walmex is cooperating with the Mexican governmental agencies conducting these investigations. Furthermore, lawsuits relating to the matters under investigation have been filed by several of the Company's shareholders against it, certain of its current directors, certain of its former directors, certain of its current and former officers and certain of Walmex's current and former officers.
The Company could be exposed to a variety of negative consequences as a result of the matters noted above. There could be one or more enforcement actions in respect of the matters that are the subject of some or all of the on-going government investigations, and such actions, if brought, may result in judgments, settlements, fines, penalties, injunctions, cease and desist orders, debarment or other relief, criminal convictions and/or penalties. The shareholder lawsuits may result in judgments against the Company and its current and former directors and officers named in those proceedings. The Company cannot predict at this time the outcome or impact of the government investigations, the shareholder lawsuits, or its own internal investigations and review. In addition, the Company has incurred and expects to continue to incur costs in responding to requests for information or subpoenas seeking documents, testimony and other information in connection with the government investigations, in defending the shareholder lawsuits, and in conducting the review and investigations. These costs will be expensed as incurred. For the three and nine months ended October 31, 2015 and 2014, the Company incurred the following third-party expenses in connection with the FCPA investigation and related matters:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2015
 
2014
 
2015
 
2014
Ongoing inquiries and investigations
 
$
22

 
$
30

 
$
70

 
$
95

Global compliance program and organizational enhancements
 
8

 
11

 
23

 
42

Total
 
$
30

 
$
41

 
$
93

 
$
137


These matters may require the involvement of certain members of the Company's senior management that could impinge on the time they have available to devote to other matters relating to the business. The Company expects that there will be on-going media and governmental interest, including additional news articles from media publications on these matters, which could impact the perception among certain audiences of the Company's role as a corporate citizen.    
The Company's process of assessing and responding to the governmental investigations and the shareholder lawsuits continues. While the Company believes that it is probable that it will incur a loss from these matters, given the on-going nature and complexity of the review, inquiries and investigations, the Company cannot reasonably estimate any loss or range of loss that may arise from these matters. Although the Company does not presently believe that these matters will have a material adverse effect on its business, given the inherent uncertainties in such situations, the Company can provide no assurance that these matters will not be material to its business in the future.
Segments
Segments
Segments
The Company is engaged in retail and wholesale operations located in the U.S., Argentina, Brazil, Canada, Chile, China, India, Japan, Mexico and the United Kingdom, as well as countries located in Africa and Central America. The Company's operations are conducted in three business segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results its chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services.
The Walmart U.S. segment includes the Company's mass merchant concept in the U.S. operating under the "Walmart" or "Wal-Mart" brands, as well as walmart.com. The Walmart International segment consists of the Company's operations outside of the U.S., including various retail websites. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments.
The Company measures the results of its segments using, among other measures, each segment's net sales and operating income, which includes certain corporate overhead allocations. From time to time, the Company revises the measurement of each segment's operating income, including any corporate overhead allocations, as determined by the information regularly reviewed by its CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation.
Net sales by segment are as follows:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2015
 
2014
 
2015
 
2014
Net sales:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
72,712

 
$
70,025

 
$
216,916

 
$
208,478

Walmart International
 
29,811

 
33,659

 
90,726

 
99,955

Sam's Club
 
14,075

 
14,392

 
42,288

 
43,146

Net sales
 
$
116,598

 
$
118,076

 
$
349,930

 
$
351,579


Operating income by segment, as well as operating loss for corporate and support, and interest, net, are as follows:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2015
 
2014
 
2015
 
2014
Operating income (loss):
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
4,506

 
$
4,932

 
$
13,964

 
$
15,159

Walmart International
 
1,338

 
1,430

 
3,685

 
4,121

Sam's Club
 
539

 
493

 
1,394

 
1,466

Corporate and support
 
(669
)
 
(590
)
 
(1,580
)
 
(1,548
)
Operating income
 
5,714

 
6,265

 
17,463

 
19,198

Interest, net
 
552

 
656

 
1,919

 
1,762

Income from continuing operations before income taxes
 
$
5,162

 
$
5,609

 
$
15,544

 
$
17,436

Accounting Policies Summary of Significant Accounting Policies (Policies)
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.
Inventories
The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting, using the last-in, first-out ("LIFO") method for substantially all of the Walmart U.S. segment's inventories. The inventory at the Walmart International segment is valued primarily by the retail inventory method of accounting, using the first-in, first-out ("FIFO") method. The retail inventory method of accounting results in inventory being valued at the lower of cost or market, since permanent markdowns are immediately recorded as a reduction of the retail value of inventory. The inventory at the Sam's Club segment is valued based on the weighted-average cost using the LIFO method.
Net Income Per Common Share (Tables)
Schedule of calculation of numerator and denominator in earnings per share
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:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions, except per share data)
 
2015
 
2014
 
2015
 
2014
Numerator
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
3,414

 
$
3,826

 
$
10,332

 
$
11,626

Income from continuing operations attributable to noncontrolling interest
 
(110
)
 
(115
)
 
(212
)
 
(410
)
Income from continuing operations attributable to Walmart
 
$
3,304

 
$
3,711

 
$
10,120

 
$
11,216

 
 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
3,210

 
3,229

 
3,221

 
3,231

Dilutive impact of stock options and other share-based awards
 
9

 
11

 
10

 
12

Weighted-average common shares outstanding, diluted
 
3,219

 
3,240

 
3,231

 
3,243


 
 
 
 
 
 
 
 
Income per common share from continuing operations attributable to Walmart
 
 
 
 
 
 
 
 
Basic
 
$
1.03

 
$
1.15

 
$
3.14

 
$
3.47

Diluted
 
1.03

 
1.15

 
3.13

 
3.46

Accumulated Other Comprehensive Income (Loss) (Tables)
Composition of accumulated other comprehensive income (loss)
The following table provides the changes in the composition of total accumulated other comprehensive income (loss) for the nine months ended October 31, 2015:
(Amounts in millions and net of income taxes)
 
Currency Translation
and Other
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension Liability
 
Total
Balances as of February 1, 2015
 
$
(7,011
)
 
$
656

 
$
(134
)
 
$
(679
)
 
$
(7,168
)
Other comprehensive income (loss) before reclassifications
 
(3,590
)
 
101

 
(104
)
 
81

 
(3,512
)
Amounts reclassified from accumulated other comprehensive income (loss)
 

 

 
29

 
(8
)
 
21

Balances as of October 31, 2015
 
$
(10,601
)
 
$
757

 
$
(209
)
 
$
(606
)
 
$
(10,659
)
Long-term Debt (Tables)
The following table provides the changes in the Company's long-term debt for the nine months ended October 31, 2015:
(Amounts in millions)
 
Long-term debt due within one year
 
Long-term debt
 
Total
Balances as of February 1, 2015
 
$
4,791

 
$
40,889

 
$
45,680

Proceeds from long-term debt
 

 
41

 
41

Repayments of long-term debt
 
(4,422
)
 

 
(4,422
)
Reclassifications of long-term debt
 
2,000

 
(2,000
)
 

Other
 
377

 
(313
)
 
64

Balances as of October 31, 2015
 
$
2,746

 
$
38,617

 
$
41,363

During the nine months ended October 31, 2015, the following long-term debt matured and was repaid:
(Amounts in millions)
 
 
 
 
 
 
 
 
Maturity Date
 
Principal Amount
 
Fixed vs. Floating
 
Interest Rate
 
Repayment
April 1, 2015
 
750 USD
 
Fixed
 
2.875%
 
$
750

July 1, 2015
 
750 USD
 
Fixed
 
4.500%
 
750

July 8, 2015
 
750 USD
 
Fixed
 
2.250%
 
750

July 28, 2015
 
30,000 JPY
 
Floating
 
Floating
 
243

July 28, 2015
 
60,000 JPY
 
Fixed
 
0.940%
 
487

October 25, 2015
 
1,250 USD
 
Fixed
 
1.500%
 
1,250

 
 
 
 
 
 
 
 
$
4,230

Fair Value Measurements (Tables)
As of October 31, 2015 and January 31, 2015, the notional amounts and fair values of these derivatives were as follows:
 
October 31, 2015
 
January 31, 2015
(Amounts in millions)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges
$
5,000

 
$
91

 
$
500

 
$
12

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

 
192

 
1,250

 
207

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges
4,294

 
(370
)
 
4,329

 
(317
)
Receive variable-rate, pay fixed-rate interest rate swaps designated as cash flow hedges

 

 
255

 
(1
)
Total
$
10,544

 
$
(87
)
 
$
6,334

 
$
(99
)
The carrying value and fair value of the Company's long-term debt as of October 31, 2015 and January 31, 2015, are as follows: 
 
 
October 31, 2015
 
January 31, 2015
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
41,363

 
$
47,280

 
$
45,680

 
$
56,237

Derivative Financial Instruments (Tables)
Schedule of derivative instruments in statement of financial position, fair value
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 Condensed Consolidated Balance Sheets:
 
October 31, 2015
 
January 31, 2015
(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
$

 
$

 
$

 
$

 
$

 
$

Other assets and deferred charges
91

 
192

 
292

 
12

 
207

 
293

Derivative asset subtotals
$
91

 
$
192

 
$
292

 
$
12

 
$
207

 
$
293

 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities
$

 
$

 
$

 
$

 
$

 
$
1

Deferred income taxes and other

 

 
662

 

 

 
610

Derivative liability subtotals
$

 
$

 
$
662

 
$

 
$

 
$
611

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

 
$

 
$

 
$

 
$
766

 
$

Long-term debt

 
3,940

 

 

 
3,850

 

Nonderivative hedge liability subtotals
$

 
$
3,940

 
$

 
$

 
$
4,616

 
$

Share Repurchases (Tables)
Schedule of Company's share repurchases
The following table provides, on a trade date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for the nine months ended October 31, 2015 and 2014:
 
 
Nine Months Ended October 31,
(Amounts in millions, except per share data)
 
2015
 
2014
Total number of shares repurchased
 
23.2

 
13.4

Average price paid per share
 
$
74.20

 
$
75.82

Total amount paid for share repurchases
 
$
1,720

 
$
1,015

Common Stock Dividends (Tables)
Common stock dividends, record date and payable date
For fiscal 2016, the annual dividend will be paid in four quarterly installments of $0.49 per share, according to the following record and payable dates:
Record Date
  
Payable Date
March 13, 2015
  
April 6, 2015
May 8, 2015
  
June 1, 2015
August 7, 2015
  
September 8, 2015
December 4, 2015
  
January 4, 2016
Contingencies Schedule of FCPA Expenses (Tables)
Foreign corrupt practices act expenses
For the three and nine months ended October 31, 2015 and 2014, the Company incurred the following third-party expenses in connection with the FCPA investigation and related matters:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2015
 
2014
 
2015
 
2014
Ongoing inquiries and investigations
 
$
22

 
$
30

 
$
70

 
$
95

Global compliance program and organizational enhancements
 
8

 
11

 
23

 
42

Total
 
$
30

 
$
41

 
$
93

 
$
137

Segments (Tables)
Net sales by segment are as follows:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2015
 
2014
 
2015
 
2014
Net sales:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
72,712

 
$
70,025

 
$
216,916

 
$
208,478

Walmart International
 
29,811

 
33,659

 
90,726

 
99,955

Sam's Club
 
14,075

 
14,392

 
42,288

 
43,146

Net sales
 
$
116,598

 
$
118,076

 
$
349,930

 
$
351,579

Operating income by segment, as well as operating loss for corporate and support, and interest, net, are as follows:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2015
 
2014
 
2015
 
2014
Operating income (loss):
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
4,506

 
$
4,932

 
$
13,964

 
$
15,159

Walmart International
 
1,338

 
1,430

 
3,685

 
4,121

Sam's Club
 
539

 
493

 
1,394

 
1,466

Corporate and support
 
(669
)
 
(590
)
 
(1,580
)
 
(1,548
)
Operating income
 
5,714

 
6,265

 
17,463

 
19,198

Interest, net
 
552

 
656

 
1,919

 
1,762

Income from continuing operations before income taxes
 
$
5,162

 
$
5,609

 
$
15,544

 
$
17,436

Accounting Policies Summary of Significant Accounting Policies (Details) (Consumer credit receivable, USD $)
In Millions, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
Consumer credit receivable
Financing Receivable, Allowance for Credit Losses [Line Items]
Consumer credit receivable, net
$944
$1,200
Consumer credit receivable, reserve for doubtful accounts
$71
$114
Net Income Per Common Share (Details)(USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Oct. 31, 2015
Oct. 31, 2014
Net Income Per Common Share [Line Items]
Income from continuing operations
$3,414
$3,826
$10,332
$11,626
Income from continuing operations attributable to noncontrolling interest
(110)
(115)
(212)
(410)
Income from continuing operations attributable to Walmart
$3,304
$3,711
$10,120
$11,216
Weighted-average common shares outstanding, basic
3,210
3,229
3,221
3,231
Dilutive impact of stock options and other share-based awards
9
11
10
12
Weighted-average common shares outstanding, diluted
3,219
3,240
3,231
3,243
Basic income per common share from continuing operations attributable to Walmart
$1.03
$1.15
$3.14
$3.47
Diluted income per common share from continuing operations attributable to Walmart
$1.03
$1.15
$3.13
$3.46
Accumulated Other Comprehensive Income (Loss) (Details)(USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances - beginning of period
$(7,168)
$(4,251)
Other comprehensive income (loss) before reclassifications
(3,512)
Amounts reclassified from accumulated other comprehensive income (loss)
21
Balances - end of period
(10,659)
(4,251)
Currency translation and other
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances - beginning of period
(7,011)
Other comprehensive income (loss) before reclassifications
(3,590)
Balances - end of period
(10,601)
Net investment hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances - beginning of period
656
Other comprehensive income (loss) before reclassifications
101
Balances - end of period
757
Cash flow hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances - beginning of period
(134)
Other comprehensive income (loss) before reclassifications
(104)
Amounts reclassified from accumulated other comprehensive income (loss)
29
Balances - end of period
(209)
Minimum pension liability
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balances - beginning of period
(679)
Other comprehensive income (loss) before reclassifications
81
Amounts reclassified from accumulated other comprehensive income (loss)
(8)
Balances - end of period
$(606)
Schedule of Debt (Details)(USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Jan. 31, 2015
Debt Instrument [Line Items]
Long-term debt due within one year
$2,746
$4,854
$4,791
Long-term debt
38,617
41,519
40,889
Total
41,363
45,680
Proceeds from issuance of long-term debt
41
5,120
Repayments of long-term debt
(4,422)
(3,883)
Reclassifications of long-term debt
(2,000)
Reclassifications of long-term debt
2,000
Long-term debt, current maturities, other changes
377
Long-term debt, excluding current maturities, other changes
(313)
Long-term debt, other changes
64
Unsecured debt
Debt Instrument [Line Items]
Repayments of long-term debt
$(4,230)
Long-term Debt Schedule of Debt Maturities (Details)
In Millions, unless otherwise specified
9 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Oct. 31, 2015
USD ($)
Oct. 31, 2014
USD ($)
Oct. 31, 2015
Unsecured debt
USD ($)
Apr. 1, 2015
Unsecured debt
2.875% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Apr. 1, 2015
Unsecured debt
2.875% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Jul. 1, 2015
Unsecured debt
4.500% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Jul. 1, 2015
Unsecured debt
4.500% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Jul. 8, 2015
Unsecured debt
2.250% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Jul. 8, 2015
Unsecured debt
2.250% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Jul. 28, 2015
Unsecured debt
Variable Rate Debt, Due 2015 [Member]
USD ($)
Jul. 28, 2015
Unsecured debt
Variable Rate Debt, Due 2015 [Member]
JPY ()
Jul. 28, 2015
Unsecured debt
.940% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Jul. 28, 2015
Unsecured debt
.940% Fixed Rate Debt, Due 2015 [Member]
JPY ()
Oct. 25, 2015
Unsecured debt
1.500% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Oct. 25, 2015
Unsecured debt
1.500% Fixed Rate Debt, Due 2015 [Member]
USD ($)
Debt Instrument [Line Items]
Principal Amount
$750
$750
$750
30,000
60,000
$1,250
Interest Rate
2.875%
4.50%
2.25%
0.94%
1.50%
Repayments of Long-term Debt
$4,422
$3,883
$4,230
$750
$750
$750
$243
$487
$1,250
Fair Value Measurements (Notional Amounts And Fair Values Of Interest Rate Swaps) (Details) (Recurring, USD $)
In Millions, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
$10,544
$6,334
Fair value, inputs, level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
(87)
(99)
Fair value hedging |
Floating-rate interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
5,000
500
Fair value hedging |
Floating-rate interest rate swaps |
Fair value, inputs, level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
91
12
Net investment hedging |
Cross-currency interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
1,250
1,250
Net investment hedging |
Cross-currency interest rate swaps |
Fair value, inputs, level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
192
207
Cash flow hedging |
Cross-currency interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
4,294
4,329
Cash flow hedging |
Cross-currency interest rate swaps |
Fair value, inputs, level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
(370)
(317)
Cash flow hedging |
Fixed-rate interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
0
255
Cash flow hedging |
Fixed-rate interest rate swaps |
Fair value, inputs, level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
$0
$(1)
Fair Value Measurements (Carrying Value And Fair Value Of Long-Term Debt) (Details)(USD $)
In Millions, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt
$41,363