WAL MART STORES INC, 10-Q filed on 12/4/2012
Quarterly Report
Document And Entity Information
9 Months Ended
Oct. 31, 2012
Nov. 30, 2012
Document And Entity Information [Abstract]
Document Type
10-Q
Amendment Flag
false
Document Period End Date
Oct. 31, 2012
Document Fiscal Year Focus
2013
Document Fiscal Period Focus
Q3
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
Entity Common Stock, Shares Outstanding
3,345,237,845
Condensed Consolidated Statements Of Income (Unaudited)(USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Oct. 31, 2011
Revenues:
Net sales
$113,204
$109,516
$339,010
$321,569
Membership and other Income
725
710
2,233
2,212
Total revenues
113,929
110,226
341,243
323,781
Costs and expenses:
Cost of sales
85,517
82,591
256,360
242,538
Operating, selling, general and administrative expenses
22,296
21,757
65,682
63,086
Operating income
6,116
5,878
19,201
18,157
Interest:
Debt
522
528
1,512
1,544
Capital leases
68
72
206
218
Interest income
(43)
(65)
(131)
(131)
Interest, net
547
535
1,587
1,631
Income from continuing operations before income taxes
5,569
5,343
17,614
16,526
Provision for income taxes
1,744
1,842
5,734
5,510
Income from continuing operations
3,825
3,501
11,880
11,016
Loss from discontinued operations, net of income taxes
0
(8)
0
(36)
Consolidated net income
3,825
3,493
11,880
10,980
Less consolidated net income attributable to noncontrolling interest
(190)
(157)
(487)
(444)
Consolidated net income attributable to Walmart
$3,635
$3,336
$11,393
$10,536
Basic net income per common share:
Basic income per common share from continuing operations attributable to Walmart
$1.08
$0.97
$3.37
$3.04
Basic loss per common share from discontinued operations attributable to Walmart
$0.00
$0.00
$0.00
$(0.01)
Basic net income per common share attributable to Walmart
$1.08
$0.97
$3.37
$3.03
Diluted net income per common share:
Diluted income per common share from continuing operations attributable to Walmart
$1.08
$0.97
$3.35
$3.03
Diluted loss per common share from discontinued operations attributable to Walmart
$0.00
$(0.01)
$0.00
$(0.01)
Diluted net income per common share attributable to Walmart
$1.08
$0.96
$3.35
$3.02
Weighted-average common shares outstanding:
Basic
3,364
3,445
3,385
3,473
Diluted
3,379
3,458
3,400
3,487
Dividends declared per common share
$0.00
$0.00
$1.59
$1.46
Condensed Consolidated Statements Of Comprehensive Income (Unaudited)(USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Oct. 31, 2011
Statement of Other Comprehensive Income [Abstract]
Consolidated net income
$3,825
$3,493
$11,880
$10,980
Less consolidated net income attributable to noncontrolling interest
(176)
(146)
(448)
(404)
Less consolidated net income attributable to redeemable noncontrolling interest
(14)
(11)
(39)
(40)
Consolidated net income attributable to Walmart
3,635
3,336
11,393
10,536
Other comprehensive income, net of income taxes
Currency translation and other
876
(3,546)
1,232
(2,646)
Derivatives instruments
250
15
(135)
(98)
Minimum pension liabilities
(1)
0
3
0
Other comprehensive income, net of income taxes
1,125
(3,531)
1,100
(2,744)
Less other comprehensive income attributable to noncontrolling interest
(122)
806
(196)
663
Less other comprehensive income attributable to redeemable noncontrolling interest
(34)
64
(56)
60
Other comprehensive income attributable to Walmart
969
(2,661)
848
(2,021)
Comprehensive income, net of income taxes
4,950
(38)
12,980
8,236
Less comprehensive income attributable to noncontrolling interest
(298)
660
(644)
259
Less comprehensive income attributable to redeemable noncontrolling interest
(48)
53
(95)
20
Comprehensive income attributable to Walmart
$4,604
$675
$12,241
$8,515
Condensed Consolidated Balance Sheets (Unaudited)(USD $)
In Millions, unless otherwise specified
Oct. 31, 2012
Jan. 31, 2012
Oct. 31, 2011
Current assets:
Cash and cash equivalents
$8,643
$6,550
$7,063
Receivables, net
5,567
5,937
4,757
Inventories
47,487
40,714
44,340
Prepaid expenses and other
1,654
1,685
3,227
Current assets of discontinued operations
80
89
89
Total current assets
63,431
54,975
59,476
Property and equipment:
Property and equipment
163,011
155,002
151,638
Less accumulated depreciation
(50,450)
(45,399)
(43,909)
Property and equipment, net
112,561
109,603
107,729
Property under capital leases:
Property under capital leases
5,900
5,936
5,860
Less accumulated amortization
(3,208)
(3,215)
(3,197)
Property under capital leases, net
2,692
2,721
2,663
Goodwill
20,572
20,651
20,409
Other assets and deferred charges
6,562
5,456
4,967
Total assets
205,818
193,406
195,244
Current liabilities:
Short-term borrowings
8,740
4,047
9,594
Accounts payable
40,272
36,608
37,555
Dividends payable
1,381
0
1,305
Accrued liabilities
18,536
18,154
16,890
Accrued income taxes
1,010
1,164
382
Long-term debt due within one year
6,550
1,975
1,470
Obligations under capital leases due within one year
331
326
321
Current liabilities of discontinued operations
25
26
27
Total current liabilities
76,845
62,300
67,544
Long-term debt
38,872
44,070
44,872
Long-term obligations under capital leases
2,964
3,009
2,979
Deferred income taxes and other
8,044
7,862
8,085
Redeemable Noncontrolling Interest, Equity, Carrying Amount
492
404
373
Commitments and contingencies
  
  
  
Equity:
Common stock
336
342
344
Capital in excess of par value
3,861
3,692
3,425
Retained earnings
70,256
68,691
64,769
Accumulated other comprehensive income (loss)
(562)
(1,410)
(1,375)
Total Walmart shareholders' equity
73,891
71,315
67,163
Noncontrolling interest
4,710
4,446
4,228
Total equity
78,601
75,761
71,391
Total liabilities and equity
$205,818
$193,406
$195,244
Condensed Consolidated Statement Of Shareholders' Equity (Unaudited)(USD $)
In Millions
Total
Common Stock [Member]
Capital In Excess Of Par Value [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total Walmart Shareholders' Equity [Member]
Noncontrolling Interest [Member]
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 (excludes redeemable noncontrolling interest)
11,841
11,393
11,393
448
Other Comprehensive Income Net Of Tax, excluding redeemable noncontrolling interest
1,044
848
848
196
Cash dividends declared (1.59 per share)
(5,409)
(5,409)
(5,409)
Purchase of Company stock (in shares)
(70)
Purchase of Company stock
(4,618)
(7)
(199)
(4,412)
(4,618)
Other Shares
10
Other
(18)
1
368
(7)
362
(380)
Balances at Oct. 31, 2012
$78,601
$336
$3,861
$70,256
$(562)
$73,891
$4,710
Balances, in shares at Oct. 31, 2012
3,358
Condensed Consolidated Statement Of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended 9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Oct. 31, 2011
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share
$0.00
$0.00
$1.59
$1.46
Condensed Consolidated Statements Of Cash Flows (Unaudited)(USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Cash flows from operating activities:
Consolidated net income
$11,880
$10,980
Loss from discontinued operations, net of income taxes
0
36
Income from continuing operations
11,880
11,016
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization
6,322
6,067
Deferred income taxes
279
1,342
Other operating activities
81
25
Changes in certain assets and liabilities, net of effects of acquisitions:
Accounts receivable
501
499
Inventories
(6,459)
(7,357)
Accounts payable
3,545
3,417
Accrued liabilities
(82)
(2,305)
Accrued income taxes
(160)
210
Net cash provided by operating activities
15,907
12,914
Cash flows from investing activities:
Payments for property and equipment
(8,921)
(9,543)
Proceeds from the disposal of property and equipment
343
354
Investments and business acquisitions, net of cash acquired
(716)
(3,537)
Other investing activities
(58)
(88)
Net cash used in investing activities
(9,352)
(12,814)
Cash flows from financing activities:
Net change in short-term borrowings
4,700
8,558
Proceeds from issuance of long-term debt
199
5,008
Payments of long-term debt
(639)
(4,265)
Dividends paid
(4,034)
(3,800)
Purchase of Company stock
(4,657)
(4,957)
Other financing activities
(263)
(828)
Net cash used in financing activities
(4,694)
(284)
Effect of exchange rates on cash and cash equivalents
232
(148)
Net increase (decrease) in cash and cash equivalents
2,093
(332)
Cash and cash equivalents at beginning of year
6,550
7,395
Cash and cash equivalents at end of period
$8,643
$7,063
Basis Of Presentation
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 a 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, 2012. 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.
The Company’s business is seasonal to a certain extent due to different calendar events and national and religious holidays, as well as different climatic conditions. Historically, the Company’s highest sales volume and operating income occur in the fiscal quarter ending January 31, which includes the holiday season, and its lowest sales volume and operating income occur during the fiscal quarter ending April 30.
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 cards, debit cards and electronic bank transfers that take in excess of seven days to process;
suppliers for marketing or incentive programs;
consumer financing programs in certain international operations; 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 $1.0 billion, net of a reserve for doubtful accounts of $93 million at October 31, 2012, compared to a receivable balance of $1.0 billion, net of a reserve for doubtful accounts of $63 million at January 31, 2012. These balances are included in receivables, net, on 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 method of accounting, using the last-in, first-out (“LIFO”) method for substantially all of the Walmart U.S. segment’s inventories. The retail method of accounting results in inventory being valued at the lower of cost or market since permanent markdowns are currently taken 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. The Walmart International segment’s inventories are primarily valued by the retail method of accounting and are stated using the first-in, first-out (“FIFO”) method. At October 31, 2012 and January 31, 2012, the Company’s inventories valued at LIFO approximate those inventories as if they were valued at FIFO.
Recent Accounting Pronouncements
In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2012-02 which amends how companies test for impairment of indefinite-lived intangible assets. The new guidance permits a company to assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform the annual impairment test. The ASU is effective for the Company in the first quarter of fiscal 2014 with early adoption permitted. The adoption of this ASU is not expected to impact the Company’s net income, financial position or cash flows.
In 2011, the FASB issued two ASUs which amend guidance for the presentation of comprehensive income. The amended guidance requires an entity to present components of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The previous option to report other comprehensive income and its components in the statement of shareholders’ equity was eliminated. Although the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under existing guidance. Beginning with the quarter ended April 30, 2012, the Company elected to report other comprehensive income and its components in a separate statement of comprehensive income. The adoption of these ASUs did not impact the Company’s net income, financial position or cash flows.
In 2011, the FASB issued ASU 2011-04 to clarify the intent of the application of existing fair value measurement and disclosure requirements, as well as change certain measurement requirements and disclosures. The Company adopted ASU 2011-04 effective February 1, 2012. In connection with the adoption, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio, consistent with how the Company previously had been measuring credit risk for these instruments. The adoption of ASU 2011-04 did not impact the Company’s 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 outstanding stock options and other share-based awards. At October 31, 2012, all stock options and other share-based awards outstanding were dilutive and included in the calculation of diluted income per common share from continuing operations attributable to Walmart. At October 31, 2011, the Company had approximately 9 million stock options and 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.
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
 
Nine Months Ended
 
 
October 31,
 
October 31,
(Amounts in millions, except per share data)
 
2012
 
2011
 
2012
 
2011
Numerator
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
3,825

 
$
3,501

 
$
11,880

 
$
11,016

Less consolidated net income attributable to noncontrolling interest
 
(190
)
 
(157
)
 
(487
)
 
(444
)
Income from continuing operations attributable to Walmart
 
$
3,635

 
$
3,344

 
$
11,393

 
$
10,572

 
 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
3,364

 
3,445

 
3,385

 
3,473

Dilutive impact of stock options and other share-based awards
 
15

 
13

 
15

 
14

Weighted-average common shares outstanding, diluted
 
3,379

 
3,458

 
3,400

 
3,487

 
 
 
 
 
 
 
 
 
Income per common share from continuing operations attributable to Walmart
 
 
 
 
 
 
 
 
Basic
 
$
1.08

 
$
0.97

 
$
3.37

 
$
3.04

Diluted
 
1.08

 
0.97

 
3.35

 
3.03

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 Walmart accumulated other comprehensive income (loss) for the nine months ended October 31, 2012:
(Amounts in millions)
 
Currency Translation
and Other
 
Derivative
Instruments
 
Minimum
Pension Liability
 
Total
Balances as of February 1, 2012
 
$
(806
)
 
$
(7
)
 
$
(597
)
 
$
(1,410
)
Other comprehensive income (loss)
 
980

 
(135
)
 
3

 
848

Balances as of October 31, 2012
 
$
174

 
$
(142
)
 
$
(594
)
 
$
(562
)
Amounts included in accumulated other comprehensive income (loss) are recorded net of their related income tax effects. 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 October 31, 2012 and January 31, 2012.
Fair Value Measurements
Fair Value Measurements
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 October 31, 2012 and January 31, 2012, the notional amounts and fair values of these derivatives are as follows:
 
October 31, 2012
 
January 31, 2012
(Amounts in millions)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
Receive fixed-rate, pay floating-rate interest rate swaps designated as fair value hedges
$
3,445

 
$
92

 
$
3,945

 
$
183

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

 
234

 
1,250

 
316

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges
2,909

 
34

 
2,884

 
(3
)
Receive floating-rate, pay fixed-rate interest rate swaps designated as cash flow hedges
1,215

 
(11
)
 
1,270

 
(16
)
Receive floating-rate, pay fixed-rate forward starting interest rate swaps designated as cash flow hedges
5,000

 
(226
)
 

 

Total
$
13,819

 
$
123

 
$
9,349

 
$
480


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, 2012, or for the fiscal year ended January 31, 2012.
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, 2012 and January 31, 2012, are as follows: 
 
 
October 31, 2012
 
January 31, 2012
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
45,422

 
$
53,897

 
$
46,045

 
$
53,043



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 floating-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. 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 $368 million and $387 million at October 31, 2012 and January 31, 2012, 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, 2012 or January 31, 2012. The Company records cash collateral paid as amounts receivable from the 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. The ineffective portion of an instrument’s change in fair value 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 floating-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 floating-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 and, accordingly, have no net impact on the Company’s Condensed Consolidated Statements of Income. These fair value instruments will mature on dates ranging from April 2013 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, as well as its currency exchange rate fluctuation exposure associated with the forecasted payments of principal and interest of non-U.S. denominated debt. 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 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 outstanding debt of approximately £3 billion and ¥275 billion that is designated as hedges of its net investments in the United Kingdom and Japan, respectively, as of October 31, 2012 and January 31, 2012. These non-derivative net investment hedges are classified as follows in the Company’s Condensed Consolidated Balance Sheets:
(Amounts in millions)
October 31, 2012
 
January 31, 2012
Long-term debt due within one year
$
1,744

 
$
785

Long-term debt
6,540

 
7,546

Liability subtotals
$
8,284

 
$
8,331



The translation of these debt instruments designated as net investment hedges is recorded in accumulated other comprehensive income (loss), offsetting the currency translation adjustment of the related net investments that is also recorded in accumulated other comprehensive income (loss). These instruments will mature on dates ranging from January 2013 to January 2039.
Cash Flow Instruments
The Company is a party to receive floating-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 payments are made on the Company’s variable-rate debt, converting the floating-rate interest expense into fixed-rate interest expense. These cash flow instruments will mature on dates ranging from August 2013 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 floating-rate, pay fixed-rate interest rate swaps to hedge its exposure to the variability in future cash flows due to changes in the LIBOR swap rate for U.S.-denominated 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 payments are made on the forecasted hedged fixed-rate debt, adjusting interest expense to reflect the fixed-rate locked in by the forward starting swaps. These cash flow instruments hedge forecasted interest payments over a maximum period of 32 years. 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.
Financial Statement Presentation
Derivative instruments with an unrealized gain are recorded in the Company’s Condensed Consolidated Balance Sheets as either a current or a non-current asset, based on maturity date, and those hedging instruments with an unrealized loss are recorded as either a current or a non-current liability, based on maturity date.
The Company’s derivative instruments, excluding non-derivative debt instruments designated as net investment hedges, were classified as follows in the Company’s Condensed Consolidated Balance Sheets:
 
October 31, 2012
 
January 31, 2012
(Amounts in millions)
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
 
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
Prepaid expenses and other
$
55

 
$

 
$

 
$
2

 
$

 
$

Other assets and deferred charges
37

 
234

 
248

 
181

 
316

 
91

Asset subtotals
$
92

 
$
234

 
$
248

 
$
183

 
$
316

 
$
91

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt due within one year (hedged item)
$
55

 
$

 
$

 
$
2

 
$

 
$

Long-term debt (hedged item)
37

 

 

 
181

 

 

Accrued liabilities

 

 
7

 

 

 

Deferred income taxes and other

 

 
444

 

 

 
110

Liability subtotals
$
92

 
$

 
$
451

 
$
183

 
$

 
$
110


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 Condensed Consolidated Statements of Income. Amounts reclassified from accumulated other comprehensive income (loss) to net income for the three and nine months ended October 31, 2012 and 2011, as well as the amounts 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 Board of Directors. The current $15.0 billion share repurchase program has no expiration date or other restrictions limiting the period over which the Company can make share repurchases under the program. At October 31, 2012, authorization for $6.7 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. Cash paid for share repurchases for the nine months ended October 31, 2012 and 2011, was as follows:
(Amounts in millions, except per share data)
 
Total Number of
Shares Repurchased
 
Average Price Paid per Share
 
Total Investment
Nine months ended October 31, 2012
 
70.9
 
$65.69
 
$4,656.6
Nine months ended October 31, 2011
 
92.4
 
$53.61
 
$4,957.0
Common Stock Dividends
Common Stock Dividends [Text Block]
Common Stock Dividends
On March 1, 2012, the Board of Directors approved an increase in the annual dividend for fiscal 2013 to $1.59 per share, an increase of approximately 9% over the $1.46 per share dividend paid in fiscal 2012. For fiscal 2013, the annual dividend will be paid in four quarterly installments of $0.3975 per share, according to the following record and payable dates:
Record Date
  
Payable Date
March 12, 2012
  
April 4, 2012
May 11, 2012
  
June 4, 2012
August 10, 2012
  
September 4, 2012
December 7, 2012
  
December 27, 2012

The dividend installments payable on April 4, 2012, June 4, 2012, and September 4, 2012 were paid as scheduled. On November 16, 2012, the Board of Directors approved a change in the date of the Company’s fourth quarter dividend payment to December 27, 2012, from the previously scheduled payment date of January 2, 2013. The December 7, 2012 record date associated with this dividend payment has not changed.
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 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. The Company filed its opening appellate brief on February 17, 2009, plaintiffs filed their response brief on April 20, 2009, and the Company filed its reply brief on June 5, 2009. Oral argument was held before the Superior Court of Appeals on August 19, 2009. On June 10, 2011, the 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. The Company filed its opening brief in the Pennsylvania Supreme Court on October 22, 2012. The Company believes it has substantial factual and legal defenses to the claims at issue, and plans to continue pursuing appellate review.
Gender Discrimination Class Actions: The Company is a defendant in Dukes v. Wal-Mart Stores, Inc., which was commenced as a class-action lawsuit in June 2001 in the United States District Court for the Northern District of California, asserting that the Company had engaged in a pattern and practice of discriminating against women in promotions, pay, training, and job assignments, and seeking, among other things, injunctive relief, front pay, back pay, punitive damages, and attorneys’ fees. On June 21, 2004, the district court issued an order granting in part and denying in part the plaintiffs’ motion for class certification. As defined by the district court, the class included “[a]ll women employed at any Wal-Mart domestic retail store at any time since December 26, 1998, who have been or may be subjected to Wal-Mart’s challenged pay and management track promotions policies and practices.” The Company appealed the order to the Ninth Circuit Court of Appeals and subsequently to the United States Supreme Court. On June 20, 2011, the Supreme Court issued an opinion decertifying the class and remanding the case to the district court. On October 27, 2011, the plaintiffs’ attorneys filed an amended complaint proposing a class of current and former female associates at the Company’s California retail facilities, and the Company filed a motion to dismiss on January 13, 2012. On September 21, 2012, the court denied the motion. On October 28, 2011, the plaintiffs’ attorneys filed a complaint in the United States District Court for the Northern District of Texas entitled Odle v. Wal-Mart Stores, Inc., proposing a class of current and former female associates at the Company’s Texas retail facilities. On October 2 and 4, 2012, the plaintiff’s attorneys filed similar complaints in Florida and Tennessee, respectively. On October 15, 2012, the judge in the Odle case granted the Company’s motion to dismiss, and dismissed all the plaintiffs’ class-action allegations and the individual claims of the lead plaintiff, Stephanie Odle. On October 25 and 26, 2012, the Company filed similar motions to dismiss in the Florida and Tennessee cases, respectively. Management does not believe any possible loss or the range of any possible loss that may be incurred in connection with these matters will be material to the Company’s financial condition or results of operations.
Hazardous Materials Investigations: On November 8, 2005, the Company received a grand jury subpoena from the United States Attorney’s Office for the Central District of California, seeking documents and information relating to the Company’s receipt, transportation, handling, identification, recycling, treatment, storage and disposal of certain merchandise that constitutes hazardous materials or hazardous waste. The Company has been informed by the U.S. Attorney’s Office for the Central District of California that it is a target of a criminal investigation into potential violations of the Resource Conservation and Recovery Act (the “RCRA”), the Clean Water Act and the Hazardous Materials Transportation Statute. This U.S. Attorney’s Office contends, among other things, that the use of Company trucks to transport certain returned merchandise from the Company’s stores to its return centers is prohibited by RCRA because those materials may be considered hazardous waste. The government alleges that, to comply with RCRA, the Company must ship from the store certain materials as “hazardous waste” directly to a certified disposal facility using a certified hazardous waste carrier. The U.S. Attorney’s Office in the Northern District of California and the U.S. Environmental Protection Agency subsequently joined in this investigation. The Company contends that the practice of transporting returned merchandise to its return centers for subsequent disposition, including disposal by certified facilities, is compliant with applicable laws and regulations. Management does not believe any possible loss or the range of any possible loss that may be incurred in connection with these matters will be material to the Company’s financial condition or results of operations.
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 programs 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 programs, 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 ongoing 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 expects 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. The Company has incurred expenses of approximately $48 million and $99 million during the three and nine months ended October 31, 2012, respectively, related to these matters. 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 ongoing 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; the review, inquiries and investigations are on-going; and the Company cannot reasonably estimate any possible loss or range of possible 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.
Acquisitions
Acquisitions
Acquisitions
Certain acquisitions completed during fiscal 2013 and 2012 are as follows:
Bounteous Company Limited (“BCL”): In February 2007, the Company purchased an initial 35% interest in BCL, a holding company which owned Trust-Mart, a retailer operating in China, for $264 million and, as additional consideration, paid $376 million to extinguish a third-party loan issued to the selling BCL shareholders that was secured by the pledge of the remaining equity of BCL. Concurrent with its initial investment in BCL, the Company entered into a Shareholders’ Agreement, which provided the Company with voting rights associated with a portion of the common stock of BCL securing the loan, amounting to an additional 30% of the aggregate outstanding shares. During the second quarter of fiscal 2013, the Company completed its acquisition of the remaining equity interest in BCL for an additional payment of approximately $101 million.
Massmart Holdings Limited (“Massmart”): In June 2011, the Company completed a tender offer for approximately 51% ownership in Massmart, a South African retailer with approximately 290 stores throughout sub-Saharan Africa. The final purchase price for the acquisition was ZAR 16.9 billion ($2.5 billion). The assets acquired were $6.9 billion, including $3.1 billion in goodwill; liabilities assumed were $2.4 billion; and the non-controlling interest was $2.0 billion. The Company began consolidating Massmart’s results in the quarter ended October 31, 2011.
Netto Food Stores Limited (“Netto”): In April 2011, the Company completed the regulatory approved acquisition of 147 Netto stores from Dansk Supermarked in the United Kingdom. The Company has converted the majority of these stores to the ASDA brand. The final purchase price for the acquisition was £750 million ($1.2 billion). The assets acquired were $1.3 billion, including $748 million in goodwill; and liabilities assumed were $103 million. The Company began consolidating Netto’s results in the quarter ended July 31, 2011.
Segments
Segments
Segments
The Company is engaged in the operations of retail stores located in the U.S., 12 countries in Africa, Argentina, Brazil, Canada, 5 countries in Central America, Chile, China, India, Japan, Mexico, and the United Kingdom. The Company’s operations are conducted in three reportable business segments: Walmart U.S., Walmart International, and Sam’s Club. The Company defines its segments as those business units whose operating 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 revenue for each of these individual products and services.
The Walmart U.S. segment includes the Company’s mass merchant concept in the United States 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 United States, including various websites. The Sam’s Club segment includes the warehouse membership clubs in the United States, as well as samsclub.com. Other unallocated 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 dictated 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)
 
2012
 
2011
 
2012
 
2011
Net sales:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
66,127

 
$
63,835

 
$
199,825

 
$
191,397

Walmart International
 
33,159

 
32,383

 
97,252

 
90,387

Sam’s Club
 
13,918

 
13,298

 
41,933

 
39,785

Net sales
 
$
113,204

 
$
109,516

 
$
339,010

 
$
321,569


Operating income by segment, other unallocated operating income and interest, net, are as follows:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2012
 
2011
 
2012
 
2011
Segment operating income:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
4,844

 
$
4,634

 
$
15,128

 
$
14,280

Walmart International
 
1,455

 
1,389

 
4,258

 
3,885

Sam’s Club
 
435

 
386

 
1,461

 
1,328

Other unallocated operating income
 
(618
)
 
(531
)
 
(1,646
)
 
(1,336
)
Operating income
 
6,116

 
5,878

 
19,201

 
18,157

Interest, net
 
547

 
535

 
1,587

 
1,631

Income from continuing operations before income taxes
 
$
5,569

 
$
5,343

 
$
17,614

 
$
16,526

Net Income Per Common Share (Tables)
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share
 
 
Three Months Ended
 
Nine Months Ended
 
 
October 31,
 
October 31,
(Amounts in millions, except per share data)
 
2012
 
2011
 
2012
 
2011
Numerator
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
3,825

 
$
3,501

 
$
11,880

 
$
11,016

Less consolidated net income attributable to noncontrolling interest
 
(190
)
 
(157
)
 
(487
)
 
(444
)
Income from continuing operations attributable to Walmart
 
$
3,635

 
$
3,344

 
$
11,393

 
$
10,572

 
 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
3,364

 
3,445

 
3,385

 
3,473

Dilutive impact of stock options and other share-based awards
 
15

 
13

 
15

 
14

Weighted-average common shares outstanding, diluted
 
3,379

 
3,458

 
3,400

 
3,487

 
 
 
 
 
 
 
 
 
Income per common share from continuing operations attributable to Walmart
 
 
 
 
 
 
 
 
Basic
 
$
1.08

 
$
0.97

 
$
3.37

 
$
3.04

Diluted
 
1.08

 
0.97

 
3.35

 
3.03

Accumulated Other Comprehensive Income (Loss) (Tables)
Composition Of Accumulated Other Comprehensive Income (Loss)
The following table provides the changes in the composition of total Walmart accumulated other comprehensive income (loss) for the nine months ended October 31, 2012:
(Amounts in millions)
 
Currency Translation
and Other
 
Derivative
Instruments
 
Minimum
Pension Liability
 
Total
Balances as of February 1, 2012
 
$
(806
)
 
$
(7
)
 
$
(597
)
 
$
(1,410
)
Other comprehensive income (loss)
 
980

 
(135
)
 
3

 
848

Balances as of October 31, 2012
 
$
174

 
$
(142
)
 
$
(594
)
 
$
(562
)
Fair Value Measurements (Tables)
 
October 31, 2012
 
January 31, 2012
(Amounts in millions)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
Receive fixed-rate, pay floating-rate interest rate swaps designated as fair value hedges
$
3,445

 
$
92

 
$
3,945

 
$
183

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

 
234

 
1,250

 
316

Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges
2,909

 
34

 
2,884

 
(3
)
Receive floating-rate, pay fixed-rate interest rate swaps designated as cash flow hedges
1,215

 
(11
)
 
1,270

 
(16
)
Receive floating-rate, pay fixed-rate forward starting interest rate swaps designated as cash flow hedges
5,000

 
(226
)
 

 

Total
$
13,819

 
$
123

 
$
9,349

 
$
480

 
 
October 31, 2012
 
January 31, 2012
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
45,422

 
$
53,897

 
$
46,045

 
$
53,043

Derivative Financial Instruments (Tables)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
 
October 31, 2012
 
January 31, 2012
(Amounts in millions)
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
 
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
Prepaid expenses and other
$
55

 
$

 
$

 
$
2

 
$

 
$

Other assets and deferred charges
37

 
234

 
248

 
181

 
316

 
91

Asset subtotals
$
92

 
$
234

 
$
248

 
$
183

 
$
316

 
$
91

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt due within one year (hedged item)
$
55

 
$

 
$

 
$
2

 
$

 
$

Long-term debt (hedged item)
37

 

 

 
181

 

 

Accrued liabilities

 

 
7

 

 

 

Deferred income taxes and other

 

 
444

 

 

 
110

Liability subtotals
$
92

 
$

 
$
451

 
$
183

 
$

 
$
110

(Amounts in millions)
October 31, 2012
 
January 31, 2012
Long-term debt due within one year
$
1,744

 
$
785

Long-term debt
6,540

 
7,546

Liability subtotals
$
8,284

 
$
8,331

Share Repurchases (Tables)
Schedule Of Company's Share Repurchases
(Amounts in millions, except per share data)
 
Total Number of
Shares Repurchased
 
Average Price Paid per Share
 
Total Investment
Nine months ended October 31, 2012
 
70.9
 
$65.69
 
$4,656.6
Nine months ended October 31, 2011
 
92.4
 
$53.61
 
$4,957.0
Common Stock Dividends (Tables)
Common Stock Dividends, Record Date And Payable Date
Record Date
  
Payable Date
March 12, 2012
  
April 4, 2012
May 11, 2012
  
June 4, 2012
August 10, 2012
  
September 4, 2012
December 7, 2012
  
December 27, 2012
Segments (Tables)
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2012
 
2011
 
2012
 
2011
Net sales:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
66,127

 
$
63,835

 
$
199,825

 
$
191,397

Walmart International
 
33,159

 
32,383

 
97,252

 
90,387

Sam’s Club
 
13,918

 
13,298

 
41,933

 
39,785

Net sales
 
$
113,204

 
$
109,516

 
$
339,010

 
$
321,569

 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2012
 
2011
 
2012
 
2011
Segment operating income:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
4,844

 
$
4,634

 
$
15,128

 
$
14,280

Walmart International
 
1,455

 
1,389

 
4,258

 
3,885

Sam’s Club
 
435

 
386

 
1,461

 
1,328

Other unallocated operating income
 
(618
)
 
(531
)
 
(1,646
)
 
(1,336
)
Operating income
 
6,116

 
5,878

 
19,201

 
18,157

Interest, net
 
547

 
535

 
1,587

 
1,631

Income from continuing operations before income taxes
 
$
5,569

 
$
5,343

 
$
17,614

 
$
16,526

Basis Of Presentation Basis of Presentation (Details)(USD $)
Oct. 31, 2012
Jan. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financing Receivable, Net
$1,000,000,000
$1,000,000,000
Financing Receivable, Allowance for Credit Losses
$93,000,000
$63,000,000
Net Income Per Common Share (Details)(USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Oct. 31, 2011
Net Income Per Common Share [Line Items]
Income from continuing operations
$3,825
$3,501
$11,880
$11,016
Less consolidated net income attributable to noncontrolling interest
(190)
(157)
(487)
(444)
Income from continuing operations attributable to Walmart
$3,635
$3,344
$11,393
$10,572
Weighted-average common shares outstanding, basic
3,364
3,445
3,385
3,473
Dilutive impact of stock options and other share-based awards
15
13
15
14
Weighted-average common shares outstanding, diluted
3,379
3,458
3,400
3,487
Basic
$1.08
$0.97
$3.37
$3.04
Diluted
$1.08
$0.97
$3.35
$3.03
Stock Option [Member]
Net Income Per Common Share [Line Items]
Antidilutive stock options and share-based awards excluded from computation of diluted net income per common share
9
Accumulated Other Comprehensive Income (Loss) (Details)(USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Oct. 31, 2011
Accumulated Other Comprehensive Income Loss [Line Items]
Balances - February 1, 2012
$(1,410)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
969
(2,661)
848
(2,021)
Balances - October 31, 2012
(562)
(1,375)
(562)
(1,375)
Currency Translation And Other [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balances - February 1, 2012
(806)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
980
Balances - October 31, 2012
174
174
Derivative Instruments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balances - February 1, 2012
(7)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
(135)
Balances - October 31, 2012
(142)
(142)
Minimum Pension Liability [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balances - February 1, 2012
(597)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
3
Balances - October 31, 2012
$(594)
$(594)
Fair Value Measurements (Notional Amounts And Fair Values Of Interest Rate Swaps) (Details) (Recurring [Member], USD $)
In Millions, unless otherwise specified
Oct. 31, 2012
Jan. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
$13,819
$9,349
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
123
480
Fair Value Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
3,445
3,945
Fair Value Hedging [Member] |
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
92
183
Net Investment Hedging [Member] |
Cross-Currency Interest Rate Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
1,250
1,250
Net Investment Hedging [Member] |
Cross-Currency Interest Rate Swaps [Member] |
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
234
316
Cash Flow Hedging [Member] |
Cross-Currency Interest Rate Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
2,909
2,884
Cash Flow Hedging [Member] |
Cross-Currency Interest Rate Swaps [Member] |
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
34
(3)
Cash Flow Hedging [Member] |
Fixed-Rate Interest Rate Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
1,215
1,270
Cash Flow Hedging [Member] |
Fixed-Rate Interest Rate Swaps [Member] |
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
(11)
(16)
Cash Flow Hedging [Member] |
Forward Starting Interest Rate Swap [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount
5,000
0
Cash Flow Hedging [Member] |
Forward Starting Interest Rate Swap [Domain] |
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
$(226)
$0
Fair Value Measurements (Carrying Value And Fair Value Of Long-Term Debt) (Details)(USD $)
In Millions, unless otherwise specified
Oct. 31, 2012
Jan. 31, 2012
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including amounts due within one year, Carrying Value
$45,422
$46,045
Fair Value, Fair Value Disclosure [Member] |
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including amounts due within one year, Fair Value
$53,897
$53,043
Derivative Financial Instruments (Narrative) (Details)
9 Months Ended 9 Months Ended
Oct. 31, 2012
USD ($)
Jan. 31, 2012
GBP ()
Jan. 31, 2012
JPY ()
Oct. 31, 2012
Netting and Collateral [Member]
USD ($)
Jan. 31, 2012
Netting and Collateral [Member]
USD ($)
Oct. 31, 2012
Fair Value Hedging [Member]
Oct. 31, 2012
Net Investment Hedging [Member]
Oct. 31, 2012
Net Investment Hedging [Member]
United Kingdom and Japan [Member]
Oct. 31, 2012
Net Investment Hedging [Member]
United Kingdom [Member]
GBP ()
Oct. 31, 2012
Net Investment Hedging [Member]
JAPAN
JPY ()
Oct. 31, 2012
Cash Flow Hedging [Member]
Interest Rate Swap [Member]
Oct. 31, 2012
Cash Flow Hedging [Member]
Cross Currency Interest Rate Contract [Member]
Derivative [Line Items]
Derivative, Collateral, Obligation to Return Cash
$368,000,000
$387,000,000
Threshold of derivative liability position requiring cash collateral
150,000,000
Debt designated as United Kingdom net investment hedge
3,000,000,000
3,000,000,000
Debt designated as Japanese net investment hedge
275,000,000,000
275,000,000,000
Investment maturity date range start
Apr. 30, 2013
Oct. 30, 2023
Jan. 31, 2013
Aug. 30, 2013
Sep. 30, 2029
Investment maturity date range end
May 31, 2014
Feb. 28, 2030
Jan. 31, 2039
Jul. 30, 2015
Mar. 30, 2034
Forward Starting Interest Rate Swap Termination Date
Oct. 31, 2014
Derivative Financial Instruments (Balance Sheet Classification Of Financial Instruments) (Details)(USD $)
In Millions, unless otherwise specified
Oct. 31, 2012
Jan. 31, 2012
Oct. 31, 2011
Derivative [Line Items]
Long-term debt due within one year
$6,550
$1,975
$1,470
Long-term debt
38,872
44,070
44,872
Fair Value Hedging [Member]
Derivative [Line Items]
Derivative Assets
92
183
Derivative Liabilities
92
183
Net Investment Hedging [Member]
Derivative [Line Items]
Derivative Assets
234
316
Derivative Liabilities
0
0
Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Assets
248
91
Derivative Liabilities
451
110
PrepaidExpensesandandOther [Member] |
Fair Value Hedging [Member]
Derivative [Line Items]
Derivative Assets
55
2
OtherAssetsandDeferredCharges [Member] |
Fair Value Hedging [Member]
Derivative [Line Items]
Derivative Assets
37
181
OtherAssetsandDeferredCharges [Member] |
Net Investment Hedging [Member]
Derivative [Line Items]
Derivative Assets
234
316
OtherAssetsandDeferredCharges [Member] |
Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Assets
248
91
LongTermDebtDueWithinOneYear(HedgedItem) [Member] |
Fair Value Hedging [Member]
Derivative [Line Items]
Derivative Liabilities
55
2
LongTermDebt(HedgedItem) [Member] |
Fair Value Hedging [Member]
Derivative [Line Items]
Derivative Liabilities
37
181
Accrued Liabilities [Member] |
Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Liabilities
7
DeferredIncomeTaxesandOther [Member] |
Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Liabilities
444
110
United Kingdom and Japan [Member] |
Net Investment Hedging [Member]
Derivative [Line Items]
Long-term debt due within one year
1,744
785
Long-term debt
6,540
7,546
Liability subtotal
$8,284
$8,331
Share Repurchases (Narrative) (Details)(USD $)
In Billions, unless otherwise specified
0 Months Ended 3 Months Ended
Jun. 3, 2011
2011 Share Repurchase Program [Member]
Oct. 31, 2012
2012 Share Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Share repurchase program, authorized amount
$15.0
Stock Repurchase Program, Remaining Authorized Repurchase Amount
$6.7
Share Repurchases (Schedule Of Company's Share Repurchases) (Details)(USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Share Repurchases [Abstract]
Total Number of Shares Repurchased
70.9
92.4
Average Price Paid per Share
$65.69
$53.61
Total Investment
$4,656.6
$4,957.0
Common Stock Dividends (Narrative) (Details)
3 Months Ended 9 Months Ended 12 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Oct. 31, 2011
Jan. 31, 2012
Dividends, Common Stock [Abstract]
Annual dividend approved by Board of Directors
$0.00
$0.00
$1.59
$1.46
Percent increase over fiscal 2012 dividend
9.00%
9.00%
Dividend paid
$1.46
Common Stock, Quarterly Dividends, Per Share, Declared
$0.3975
Contingencies (Details)(USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended
Nov. 14, 2007
Oct. 31, 2012
Oct. 31, 2012
Nov. 14, 2007
Braun Hummel Lawsuit [Member]
Oct. 13, 2006
Braun Hummel Lawsuit [Member]
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period
$78
Litigation settlement, gross
188
Rate of post-judgment interest accrual
6.00%
Foreign Corrupt Practices Act Related Expenses
$48
$99
Acquisitions (Narrative) (Details)
1 Months Ended
Feb. 28, 2007
Apr. 30, 2011
Netto Food Stores Limited [Member]
USD ($)
Apr. 30, 2011
Netto Food Stores Limited [Member]
GBP ()
Jun. 30, 2011
Massmart Holdings Limited [Member]
USD ($)
Jun. 30, 2011
Massmart Holdings Limited [Member]
ZAR (R)
Feb. 28, 2007
Bounteous Company Limited [Member]
Feb. 28, 2007
Initial Interest [Member]
Bounteous Company Limited [Member]
USD ($)
Oct. 31, 2012
Additional Consideration [Member]
Bounteous Company Limited [Member]
USD ($)
Feb. 28, 2007
Additional Consideration [Member]
Bounteous Company Limited [Member]
USD ($)
Jun. 30, 2011
Sub-Saharan African [Member]
Massmart Holdings Limited [Member]
stores
Apr. 30, 2011
United Kingdom [Member]
Netto Food Stores Limited [Member]
stores
Business Acquisition [Line Items]
Equity Method investment, Initial Ownership Percentage
35.00%
Ownership percentage
51.00%
Cost of acquisition
$264,000,000
$101,000,000
$376,000,000
Equity Method Investment, Additional Ownership Percentage
30.00%
Purchase price
1,200,000,000
750,000,000
2,500,000,000
16,900,000,000
Assets acquired
1,300,000,000
6,900,000,000
Goodwill
748,000,000
3,100,000,000
Liabilities assumed
103,000,000
2,400,000,000
Non-controlling interest
$2,000,000,000
Number of stores
290
147
Segments (Segment Net Sales) (Details)(USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2012
Oct. 31, 2011
Segment Reporting Information [Line Items]
Net sales
$113,204
$109,516
$339,010
$321,569
Walmart U.S. [Member]
Segment Reporting Information [Line Items]
Net sales
66,127
63,835
199,825
191,397
Walmart International [Member]
Segment Reporting Information [Line Items]
Net sales
33,159
32,383
97,252
90,387
Sam's Club [Member]
Segment Reporting Information [Line Items]
Net sales
$13,918
$13,298
$41,933
$39,785
Africa [Member]
Segment Reporting Information [Line Items]
Number of Countries in which Entity Operates
12
12
Central America [Member]