Walmart (WMT) 10-Q 9 Sep 09 2010 Q2 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Jul. 31, 2009	3 Months Ended Jul. 31, 2008	6 Months Ended Jul. 31, 2009	6 Months Ended Jul. 31, 2008
Revenues:
Net sales	$100,082	$101,546	$193,553	$195,588
Membership and other income	828	796	1,599	1,694
Revenues, Total	100,910	102,342	195,152	197,282
Costs and expenses:
Cost of sales	75,153	77,118	145,541	148,490
Operating, selling, general and administrative expenses	19,875	19,411	38,512	37,662
Operating income	5,882	5,813	11,099	11,130
Interest:
Debt	447	450	895	938
Capital leases	68	77	138	149
Interest income	(42)	(71)	(93)	(135)
Interest, net	473	456	940	952
Income from continuing operations before income taxes	5,409	5,357	10,159	10,178
Provision for income taxes	1,853	1,826	3,456	3,496
Income from continuing operations	3,556	3,531	6,703	6,682
(Loss) income from discontinued operations, net of tax	(7)	48	(15)	41
Consolidated net income	3,549	3,579	6,688	6,723
Less consolidated net income attributable to noncontrolling interest	(107)	(130)	(224)	(252)
Consolidated net income attributable to Walmart	$3,442	$3,449	$6,464	$6,471
Basic net income per common share:
Basic income per share from continuing operations attributable to Walmart	0.89	0.86	1.66	1.63
Basic (loss) income per share from discontinued operations attributable to Walmart	-0.01	0.01	$0	0.01
Basic net income per share attributable to Walmart	0.88	0.87	1.66	1.64
Diluted net income per common share:
Diluted income per share from continuing operations attributable to Walmart	0.88	0.86	1.65	1.62
Diluted income per share from discontinued operations attributable to Walmart	$0	0.01	$0	0.01
Diluted net income per share attributable to Walmart	0.88	0.87	1.65	1.63
Weighted-average number of common shares:
Basic	3,891	3,945	3,905	3,951
Diluted	3,900	3,958	3,915	3,962
Dividends declared per common share	$0	$0	1.09	0.95

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	6 Months Ended Jul. 31, 2009	6 Months Ended Jan. 31, 2009	6 Months Ended Jul. 31, 2008
Current assets:
Cash and cash equivalents	$7,997	$7,275	$6,903
Receivables	3,684	3,905	3,221
Inventories	33,861	34,511	35,365
Prepaid expenses and other	3,336	3,063	3,311
Current assets of discontinued operations	147	195	974
Total current assets	49,025	48,949	49,774
Property and equipment, at cost:
Property and equipment, at cost	133,070	125,820	126,289
Less accumulated depreciation	(35,707)	(32,964)	(31,335)
Property and equipment, net	97,363	92,856	94,954
Property under capital lease:
Property under capital lease	5,583	5,341	5,740
Less accumulated amortization	(2,759)	(2,544)	(2,645)
Property under capital lease, net	2,824	2,797	3,095
Goodwill	16,149	15,260	16,400
Other assets and deferred charges	3,581	3,567	2,672
Total assets	168,942	163,429	166,895
Current liabilities:
Commercial paper and other short-term borrowings	1,122	1,506	4,347
Accounts payable	28,797	28,849	29,912
Dividends payable	2,073	0	1,927
Accrued liabilities	16,706	18,112	15,607
Accrued income taxes	1,162	677	555
Long-term debt due within one year	6,959	5,848	2,180
Obligations under capital leases due within one year	336	315	324
Current liabilities of discontinued operations	41	83	77
Total current liabilities	57,196	55,390	54,929
Long-term debt	33,579	31,349	34,168
Long-term obligations under capital leases	3,246	3,200	3,544
Deferred income taxes and other	5,773	6,014	5,386
Redeemable noncontrolling interest	326	397	0
Commitments and contingencies	-	-	-
Equity:
Common stock and capital in excess of par value	4,173	4,313	3,986
Retained earnings	63,153	63,660	57,883
Accumulated other comprehensive (loss) income	(318)	(2,688)	4,924
Total Walmart shareholders' equity	67,008	65,285	66,793
Noncontrolling interest	1,814	1,794	2,075
Total equity	68,822	67,079	68,868
Total liabilities and equity	$168,942	$163,429	$166,895

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	3 Months Ended Jul. 31, 2009		3 Months Ended Jul. 31, 2008		6 Months Ended Jul. 31, 2009		6 Months Ended Jul. 31, 2008
Cash flows from operating activities:
Consolidated net income	$3,549		$3,579		$6,688		$6,723
Loss (gain) from discontinued operations, net of tax	7		(48)		15		(41)
Income from continuing operations	3,556		3,531		6,703		6,682
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization					3,457		3,366
Other					(246)		219
Changes in certain assets and liabilities, net of effects of acquisitions:
Decrease in accounts receivable					575		578
Decrease in inventories					1,394		95
Decrease in accounts payable					(1,131)		(150)
Decrease in accrued liabilities					(857)		(626)
Net cash provided by operating activities					9,895		10,164
Cash flows from investing activities:
Payments for property and equipment					(5,744)		(5,074)
Proceeds from disposal of property and equipment					172		492
Investment in international operations, net of cash acquired					0		(74)
Other investing activities					(176)		129
Net cash used in investing activities					(5,748)		(4,527)
Cash flows from financing activities:
Decrease in commercial paper and other short-term borrowings, net					(654)		(639)
Proceeds from issuance of long-term debt					2,956		4,648
Payment of long-term debt					(95)		(4,061)
Dividends paid					(2,129)		(1,878)
Purchase of Company stock					(2,792)		(2,184)
Purchase of redeemable noncontrolling interest					(456)		0
Other financing activities					(264)		(266)
Net cash used in financing activities					(3,434)		(4,380)
Effect of exchange rates on cash					9		115
Net increase in cash and cash equivalents					722		1,372
Cash and cash equivalents at beginning of year					7,275	[2]	5,569	[2]
Cash and cash equivalents at end of period	$7,997	[1]	$6,941	[1]	$7,997	[1]	$6,941	[1]
[1]Includes cash and cash equivalents of discontinued operations of $38 million at July 31, 2008.
[2]Includes cash and cash equivalents of discontinued operations of $77 million at January 31, 2008.

Notes to Financial Statements

Notes to Financial Statements
	6 Months Ended Jul. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
1 Basis of Presentation	1 Basis of Presentation The Condensed Consolidated Balance Sheets of Wal-Mart Stores, Inc. and its subsidiaries (Walmart, the Company or we) as of July31, 2009 and 2008, the related Condensed Consolidated Statements of Income for the three- and six-month periods ended July31, 2009 and 2008, and the related Condensed Consolidated Statements of Cash Flows for the six-month periods ended July31, 2009 and 2008, are unaudited. The Condensed Consolidated Balance Sheet as of January31, 2009, is derived from the Companys audited Consolidated Balance Sheet at that date. The Companys operations in Argentina, Brazil, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua and the United Kingdom are consolidated using a December31 fiscal year end, generally due to statutory reporting requirements. The Companys operations in Canada and Puerto Rico are consolidated using a January31 fiscal year end. 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. Interim results are not necessarily indicative of results for a full year. The Condensed Consolidated Financial Statements and notes thereto are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the SEC) and do not contain certain information included in the Companys Annual Report to Shareholders for the fiscal year ended January31, 2009. Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report to Shareholders. In connection with the Companys finance transformation project, we reviewed and adjusted the classification of certain revenue and expense items within our Condensed Consolidated Statements of Income for financial reporting purposes. The reclassifications did not impact operating income or consolidated net income attributable to Walmart. The changes were effective February1, 2009 and have been reflected in all prior periods presented.
2 Net Income Per Common Share	2 Net Income Per Common Share Basic net income per common share attributable to Walmart is based on the weighted-average number of outstanding common shares. Diluted net income per common share attributable to Walmart is based on the weighted-average number of outstanding shares adjusted for the dilutive effect of stock options and other share-based awards. The dilutive effect of outstanding stock options and other share-based awards was 9million and 10million shares for the three and six months ended July31, 2009, respectively; and 13million and 11million shares for the three and six months ended July31, 2008, respectively. The Company had approximately 29million and 1million stock options outstanding at July31, 2009 and 2008, respectively, which were not included in the diluted net income per share calculation because their effect would be antidilutive. For purposes of determining net income per common share attributable to Walmart, income from continuing operations attributable to Walmart and the (loss) gain from discontinued operations, net of tax, are as follows: ThreeMonthsEnded July31, Six Months Ended July31, (Amounts in millions) 2009 2008 2009 2008 Income from continuing operations attributable to Walmart $ 3,449 $ 3,401 $ 6,479 $ 6,430 (Loss) income from discontinued operations, net of tax (7 ) 48 (15 ) 41 Consolidated net income attributable to Walmart $ 3,442 $ 3,449 $ 6,464 $ 6,471 In June 2008, the Financial Accounting Standards Board (FASB) issued Staff Position EITF 03-06-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (FSP EITF 03-06-1). FSP EITF 03-06-1 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method in Statement of Financial Account Standards (SFAS) No.128, Earnings per Share. The Company adopted FSP EITF 03-06-1 on February1, 2009. The adoption did not have, and is not expected to have, a material impact on basic or diluted earnings per share.
3 Inventories	3 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. segments merchandise inventories. The Sams Club segments merchandise and merchandise in our distribution warehouses are valued based on the weighted-average cost using the LIFO method. Inventories of foreign operations are primarily valued by the retail method of accounting, using the first-in, first-out (FIFO) method. At July31, 2009 and 2008, our inventories valued at LIFO approximate those inventories as if they were valued at FIFO.
4 Long-Term Debt	4 Long-Term Debt On March27, 2009, the Company issued and sold 1.0 billion of 5.625% Notes Due 2034 at an issue price equal to 98.981% of the notes aggregate principal amount.Interest started accruing on the notes on March27, 2009. The Company will pay interest on the notes on March27 and September27 of each year, commencing on September27, 2009.The notes will mature on March27, 2034.The notes are senior, unsecured obligations of Walmart. On May21, 2009, the Company issued and sold $1.0 billion of 3.20% Notes Due 2014 at an issue price equal to 99.987% of the notes aggregate principal amount.Interest started accruing on the notes on May21, 2009. The Company will pay interest on the notes on May15 and November15 of each year, commencing on November15, 2009.The notes will mature on May15, 2014.The notes are senior, unsecured obligations of Walmart. On July27, 2009, the Company issued and sold $500 million of 6.200% Notes Due 2038 at an issue price equal to 106.001% of the notes aggregate principal amount.Interest started accruing on the notes on April15, 2009. The Company will pay interest on the notes on April15 and October15 of each year, commencing on October15, 2009.The notes will mature on April15, 2038. The notes are senior, unsecured obligations of Walmart.
5 Fair Value Measurements	5 Fair Value Measurements In September 2006, the FASB issued SFAS No.157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value within generally accepted accounting principles (GAAP) and expands required disclosures about fair value measurements. In November 2007, the FASB provided a one year deferral for the implementation of SFAS 157 for nonfinancial assets and liabilities. The Company adopted SFAS 157 on February1, 2008, as required. The adoption of SFAS 157 did not have a material impact on the Companys financial condition and results of operations. Effective February1, 2009, the Company adopted SFAS 157 for its nonfinancial assets and liabilities, and it did not have a material impact to its financial condition or results of operations. SFAS 157 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of July31, 2009 and 2008, the Company held certain derivative asset and liability positions that are required to be measured at fair value on a recurring basis. The majority of the Companys derivative instruments related to interest rate swaps. The fair values of these interest rate swaps have been measured in accordance with Level 2 inputs in the fair value hierarchy, and as of July31, 2009 and 2008, are as follows (asset/(liability)): July31, 2009 July31, 2008 (Amounts in millions) NotionalAmount FairValue NotionalAmount FairValue Receive fixed-rate, pay floating-rate interest rate swaps designated as fair value hedges $ 5,195 $ 261 $ 5,195 $ 209 Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as net investment hedges 1,250 212 1,250 (137 ) Receive floating-rate, pay fixed-rate interest rate swaps designated as cash flow hedges 461 (17 ) Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges 1,445 231 Total $ 8,351 $ 687 $ 6,445 $ 72 The fair values above are the estimated amounts the Company would receive or pay to terminate the agreements relating to such instruments as of the reporting dates. On April1, 2009, the FASB issued FASB Staff Position SFAS 107-1 and Accounting Principles Board 28-1, Interim Disclosures about Fair Value of Financial Instruments (SFAS 107-1 and APB 28-1). SFAS 107-1 and APB 28-1 require disclosures about the fair value of financial instruments in both annual and interim financial statements. The Company adopted SFAS107-1 and APB 28-1 and its adoption did not have a material impact on the Condensed Consolidated Financial Statements. We determi
6 Derivative Financial Instruments	6 Derivative Financial Instruments The Company uses derivative financial instruments for hedging and non-trading purposes to manage its exposure to changes in interest and foreign 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 instrument will change. In a hedging relationship, the change in the value of the derivative is offset to a great extent by the change in the value of the underlying hedged item. Credit risk related to derivatives represents the possibility that the counterparty will not fulfill the terms of the contract. The notional, or contractual, amount of the Companys derivative financial instruments is used to measure interest to be paid or received and does not represent the Companys 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 Companys transactions are with counterparties rated A+ or better by nationally recognized credit rating agencies. In connection with various derivative agreements with counterparties, the Company is holding $184 million in cash collateral from these counterparties at July31, 2009. It is our policy to record cash collateral exclusive of any derivative asset, and any collateral holdings are reflected in our accrued liabilities as amounts due to the counterparties. Furthermore, as part of the master netting arrangements with these counterparties, the Company is also required to post collateral if the derivative liability position exceeds $150 million. The Company has no outstanding collateral postings and in the event of providing cash collateral, the Company would record the posting as a receivable exclusive of any derivative liability. The Company uses derivative financial instruments for purposes other than trading to manage its exposure to interest and foreign exchange rates, as well as to maintain an appropriate mix of fixed and floating-rate debt. Contract terms of a hedge 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 instrument is a hedge, 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 (loss) income until the hedged item is recognized in earnings. The ineffective portion of an instruments change in fair value will be immediately recognized in earnings. Instruments that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, are valued at fair value with unrealized gai
7 Segments	7 Segments The Company is engaged in the operations of retail stores located in all 50 states of the United States, our wholly-owned subsidiaries in Argentina, Brazil, Canada, Japan, Puerto Rico and the United Kingdom, our majority-owned subsidiaries in Central America, Chile and Mexico and our joint ventures in China and India and our other controlled subsidiaries in China. The Company identifies segments in accordance with the criteria set forth in SFAS No.131, Disclosures about Segments of an Enterprise and Related Information. As a result, we define our segments as those business units whose operating results our chief operating decision maker regularly reviews to analyze performance and allocate resources. The Walmart U.S. segment includes the Companys mass merchant concept in the United States under the Walmart or Wal-Mart brand, as well as walmart.com. The Sams Club segment includes the warehouse membership clubs in the United States, as well as samsclub.com. The International segment consists of the Companys operations outside of the 50 United States. The amounts under the caption Other in the table below relating to operating income are unallocated corporate overhead items. The Company measures the profit of its segments as segment operating income, which is defined as operating income for each operating segment and excludes unallocated corporate overhead. From time to time, we revise the allocation of corporate overhead and the measurement of each segments operating income as changes in business needs dictate. When we do, we restate all periods presented for comparative purposes. Net sales by operating segment were as follows: Three Months Ended July31, Six Months Ended July31, (Amounts in millions) 2009 2008 2009 2008 Net Sales: Walmart U.S. $ 64,209 $ 63,989 $ 125,453 $ 122,980 International 23,965 25,257 45,228 49,184 Sams Club 11,908 12,300 22,872 23,424 Total Company $ 100,082 $ 101,546 $ 193,553 $ 195,588 Segment operating income was as follows: ThreeMonthsEnded July31, Six Months Ended July31, (Amounts in millions) 2009 2008 2009 2008 Operating Income: Walmart U.S. $ 4,901 $ 4,667 $ 9,365 $ 8,987 International 1,143 1,218 2,023 2,268 Sams Club 419 441 812 834 Other (581 ) (513 ) (1,101 ) (959 ) Operating income $ 5,882 $ 5,813 $ 11,099 $ 11,130 Interest expense, net (473 ) (456 ) (940 ) (952 ) Income from continuing operations before income taxes $ 5,409 $ 5,357 $ 10,159 $ 10,178 Goodwill is recorded on the Condensed Consolidated Balance Sheets for the operating segments as follows: (Amounts in millions) July31, 2009 July31, 2008 January31, 2009 International
8 Comprehensive Income	8 Comprehensive Income Comprehensive income is consolidated net income plus certain other items that are recorded directly to total equity. Amounts included in accumulated other comprehensive (loss) income for the Companys derivative instruments and minimum pension liabilities are recorded net of the related income tax effects. Comprehensive income was $6.6 billion and $4.2 billion for the three months ended July31, 2009 and 2008, respectively. Of the comprehensive income recognized for the three months ended July31, 2009 and 2008, approximately $100 million and $1 million, respectively, related to the noncontrolling interest. Comprehensive income was $9.0 billion and $7.9 billion for the six months ended July31, 2009 and 2008, respectively, of which approximately $200 million related to the noncontrolling interest in each period. The following table provides further detail regarding changes in the composition of accumulated other comprehensive loss through the first six months of fiscal 2010: (Amounts in millions) Currency Translation Derivative Instruments MinimumPension Liability Total Balance at January31, 2009 $ (2,396 ) $ (17 ) $ (275 ) $ (2,688 ) Foreign currency translation adjustment 2,487 2,487 Change in fair value of hedge instruments (117 ) (117 ) Balance at July31, 2009 $ 91 $ (134 ) $ (275 ) $ (318 ) The currency translation amount includes a net translation gain of $613 million and $1.2 billion at July31, 2009 and January31, 2009, respectively, related to net investment hedges of our operations in the United Kingdom and Japan.
9 Common Stock Dividends	9 Common Stock Dividends On March5, 2009, the Companys Board of Directors approved an increase in the annual dividend for fiscal 2010 to $1.09 per share, an increase of 15% over the dividends paid in fiscal 2009. The annual dividend is payable in four quarterly installments on April6, 2009,June1, 2009,September8, 2009, and January4, 2010 to holders of record on March13,May15,August14 and December11, 2009, respectively. The dividend installments payable on April6, 2009 and June1, 2009 were paid as scheduled.
10 Income and Other Taxes	10 Income and Other Taxes The Companys effective tax rate was 34.3% for the three months ended July31, 2009, compared to 34.2% for fiscal 2009. The Company expects the fiscal 2010 annual effective tax rate to be approximately 34-35%. Significant factors that could impact the annual effective tax rate include managements assessment of certain tax matters and the composition of taxable income between domestic and international operations. In determining the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate based on forecasted annual income and permanent items, statutory tax rates and tax planning opportunities in the various jurisdictions in which the Company operates. The impact of significant discrete items is separately recognized in the quarter in which they occur. In the normal course of its business the Company provides for uncertain tax positions, and the related interest and penalties, and adjusts its unrecognized tax benefits, accrued interest and penalties accordingly. During the second quarter of fiscal 2010, unrecognized tax benefits related to continuing operations and accrued interest decreased by $32 million and $4 million respectively, and accrued penalties increased by $10 million. For the first six months of fiscal 2010, unrecognized tax benefits related to continuing operations decreased by $83 million and accrued interest and penalties increased by $19 million and $10 million respectively. As of July31, 2009 the Companys unrecognized tax benefits relating to continuing operations were $934 million, of which $535 million would, if recognized, affect the Companys effective tax rate. During the next twelve months, it is reasonably possible that tax audit resolutions could reduce unrecognized tax benefits by $330 million to $410 million, either because our tax positions are sustained on audit or because the Company agrees to their disallowance. The Company does not expect any such audit resolutions to cause a significant change in its effective tax rate. Additionally, at January31, 2008 the Company had unrecognized tax benefits of up to $1.8 billion which, if recognized, would be recorded as discontinued operations. Of this, $63 million was recognized in discontinued operations during the second quarter of fiscal year 2009 following the resolution of a gain determination on a discontinued operation that was sold in fiscal year 2004. The balance of $1.7 billion at July31, 2009 relates to a worthless stock deduction which the Company has claimed for the its fiscal year 2007 disposition of its German operations. The Company believes it is reasonably possible this matter will be resolved within the next twelve months. The Company classifies interest on uncertain tax benefits as interest expense and income tax penalties as operating, selling, general and administrative costs. At July31, 2009, before any tax benefits, the Company had $291 million of accrued interest and penalties on unrecognized tax benefits. The Company is subject to income tax examinations for its U.S. federal income taxes generally for the fiscal year 2008, with fiscal years 2004 through 2008 remai
11 Legal Proceedings	11 Legal Proceedings The Company is involved in a number of legal proceedings. In accordance with SFAS No.5, Accounting for Contingencies, the Company has made accruals with respect to these matters, where appropriate, which are reflected in the Companys Condensed Consolidated Financial Statements. 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 Companys shareholders. 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 liability material to the Companys financial condition or results of operations. Wage-and-Hour Class Actions: The Company is a defendant in numerous cases containing class-action allegations in which the plaintiffs are current and former hourly associates who allege that the Company forced or encouraged them to work off the clock, failed to provide rest breaks or meal periods, or otherwise failed to pay them correctly. The complaints generally seek unspecified monetary damages, injunctive relief, or both. The Company cannot reasonably estimate the possible loss or range of loss that may arise from these lawsuits, except where the lawsuit has been settled or otherwise as noted below. On December23, 2008, the Company and the attorneys for the plaintiffs in 63 of the wage-and-hour class actions described above announced that they had entered into a series of settlement agreements in connection with those matters. Each of the settlements is subject to approval by the court in which the matter is pending. The total amount to be paid by the Company under the settlement agreements will depend on whether such approvals are granted, as well as on the number and amount of claims that are submitted by class members in each matter. If all of the agreements are approved by the courts, the total to be paid by the Company under the settlement agreements will be at least $352 million, but no more than $640 million, depending on the number and amount of claims. The Company may also incur additional administrative expenses and other costs in the process of concluding the settlements. One of the remaining wage-and-hour lawsuits is Savaglio v. Wal-Mart Stores, Inc., a class-action lawsuit in which the plaintiffs allege that they were not provided meal and rest breaks in accordance with California law, and seek monetary damages and injunctive relief. On July13, 2009, the Company entered into an agreement to settle this matter, which is subject to approval by the court. The total amount to be paid by the Company will depend on whether such approval is granted, as well as on the number and amount of claims that are submitted by class members. If the court approves the settlement, the Company will pay at least $77 million but no more than $152 million, depending on the number and amount of claims. The Company may also incur additional administrative expenses and other costs in the process of concluding the settlement. In another of the remaining wage-and-hour lawsuits, Braun/Hummel v. Wal-Mart Stores, I
12 Recent Accounting Pronouncements	12 Recent Accounting Pronouncements In December 2007, the FASB issued SFAS No.141(R), Business Combinations (SFAS 141(R)). SFAS 141(R) replaces SFAS 141, Business Combinations, but retains the requirement that the purchase method of accounting for acquisitions be used for all business combinations. SFAS 141(R) expands on the disclosures previously required by SFAS 141, better defines the acquirer and the acquisition date in a business combination and establishes principles for recognizing and measuring the assets acquired (including goodwill), the liabilities assumed and any noncontrolling interests in the acquired business. SFAS 141(R) also requires an acquirer to record an adjustment to income tax expense for changes in valuation allowances or uncertain tax positions related to acquired businesses. SFAS 141(R) is effective for all business combinations with an acquisition date in the first annual period following December1, 2008; early adoption is not permitted. The Company adopted this statement as of February1, 2009 and it did not have a material impact on its financial statements. In December 2007, the FASB issued SFAS No.160, Noncontrolling Interests in Consolidated Financial Statementsan amendment of ARB No.51 (SFAS 160). SFAS 160 requires that noncontrolling (i.e., minority) interests in subsidiaries be reported in the equity section of the Companys balance sheet, rather than in a mezzanine section of the balance sheet between liabilities and equity. SFAS 160 also changes the manner in which the net income of the subsidiary is reported and disclosed in the controlling companys income statement and establishes guidelines for accounting for changes in ownership percentages and for de-consolidation. SFAS 160 is effective for financial statements for fiscal years beginning on or after December1, 2008 and interim periods within those years. The Company adopted the presentation and disclosure requirements of SFAS 160 retrospectively and adopted all other provisions of SFAS 160 prospectively on February1, 2009. Accordingly, attributable to Walmart refers to operating results exclusive of any noncontrolling interest. The Company also adopted Emerging Issues Task Force Topic No. D-98, Classification and Measurement of Redeemable Securities in conjunction with its adoption of SFAS 160. This standard is applicable for all noncontrolling interests where the Company is or may be required to repurchase an interest in a consolidated subsidiary from the noncontrolling interest holder under a put option or other contractual redemption requirement. Because the Company has certain redeemable noncontrolling interests, noncontrolling interests are presented in both the equity section and the mezzanine section of the balance sheet between liabilities and equity. In March 2009, the Company paid $436 million to acquire a portion of the redeemable noncontrolling interest in Distribucin y Servicio DS S.A. (DS) through a second tender offer as required by the Chilean securities laws increasing its ownership stake in DS to 74.6%. This transaction resulted in a $148 million acquisition of the redeemable noncontrolling interest and the remaining $288
13 Discontinued Operations	13 Discontinued Operations During fiscal 2009, the Company disposed of Gazeley Limited (Gazeley), an ASDA commercial property development subsidiary in the United Kingdom. Consequently, the results of operations associated with Gazeley are presented as discontinued operations in our Condensed Consolidated Statements of Income and Condensed Consolidated Balance Sheets for all periods presented. The cash flows related to this operation were insignificant for all periods presented. In the third quarter of fiscal 2009, the Company recognized approximately $212 million, after tax, in operating profits and gains from the sale of Gazeley. The transaction continues to remain subject to certain indemnification obligations. The Companys operations in the United Kingdom are consolidated using a December31 fiscal year-end. Since the sale of Gazeley closed in July 2008, the Company recorded the gain to discontinued operations in the third quarter of fiscal 2009. During the third quarter of fiscal 2009, the Company initiated a restructuring program under which the Companys Japanese subsidiary, The Seiyu Ltd., has closed or will close approximately 23 stores and dispose of certain excess properties. This restructuring involves incurring costs associated with lease termination obligations, asset impairment charges and employee separation benefits. The costs associated with this restructuring are presented as discontinued operations in our Condensed Consolidated Statements of Income and Condensed Consolidated Balance Sheets for all periods presented. In the third quarter of fiscal 2009, the Company recognized approximately $107 million, after tax, in restructuring expenses and operating results as discontinued operations. The cash flows and accrued liabilities related to this restructuring were insignificant for all periods presented. The Company recognized approximately $7 million and $15 million, after tax, in operating losses as discontinued operations for the three and six months ended July31, 2009, respectively. Additional costs will be recorded in future periods for lease termination obligations and employee separation benefits and are not expected to be material.
14 Subsequent Events	14 Subsequent Events In May2009, the FASB issued SFAS No.165, Subsequent Events, (SFAS 165). SFAS 165 establishes principles and requirements for reviewing and reporting subsequent events. SFAS 165 requires disclosure of the date through which subsequent events are evaluated and whether the date corresponds with the time at which the financial statements were available for issue (as defined) or were issued. SFAS 165 is effective for interim reporting periods ending after June15, 2009. The Company adopted SFAS 165 and its adoption did not have a material impact on its Condensed Consolidated Financial Statements. Subsequent events have been evaluated through September9, 2009, the date of issuance of the financial statements. On August6, 2009, the Company issued and sold 83.1 billion of its Japanese Yen Bonds - Third Series (2009)(the Fixed Rate Bonds) and its 16.9 billion of its Japanese Yen Floating Rate Bonds - Second Series (2009)(the Floating Rate Bonds) at an issue price, in the case of each issue of bonds, equal to the face amount of the bonds and used the proceeds to reduce a portion of its outstanding Yen credit facility.The Fixed Rate Bonds bear interest at a rate of 1.49%per annum. The Floating Rate Bonds bear interest at a floating rate of interest equal to an applicable six-month Yen LIBOR for each interest period plus 0.60%, with an initial interest rate of 1.235%. Interest started accruing on the bonds on August6, 2009. The Company will pay interest on the bonds on February6 and August6 of each year, commencing on February6, 2010.The notes will mature on August6, 2014.The notes are senior, unsecured obligations of Walmart.

Document Information

Document Information
	6 Months Ended Jul. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Amendment Description	N.A.
Document Period End Date	2009-07-31

Entity Information

Entity Information (USD $)
	6 Months Ended Jul. 31, 2009	Sep. 04, 2009	Jul. 31, 2008
Entity [Text Block]
Trading Symbol	WMT
Entity Registrant Name	WAL MART STORES INC
Entity Central Index Key	0000104169
Current Fiscal Year End Date	--01-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		3,856,826,597
Entity Public Float			$130,849,375,750