Document and Entity Information
Document and Entity Information | ||
3 Months Ended
Apr. 30, 2010 | Jun. 01, 2010
| |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | 2010-04-30 | |
Document Fiscal Year Focus | 2,011 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | WMT | |
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 | 3,709,648,571 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | |||||||||||||||||||
In Millions, except Per Share data | 3 Months Ended
Apr. 30, 2010 | 3 Months Ended
Apr. 30, 2009 | |||||||||||||||||
Revenues: | |||||||||||||||||||
Net sales | $99,097 | $93,471 | |||||||||||||||||
Membership and other income | 751 | 771 | |||||||||||||||||
Revenues, Total | 99,848 | 94,242 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of sales | 74,703 | 70,388 | |||||||||||||||||
Operating, selling, general and administrative expenses | 19,373 | 18,637 | |||||||||||||||||
Operating income | 5,772 | 5,217 | |||||||||||||||||
Interest: | |||||||||||||||||||
Debt | 455 | 448 | |||||||||||||||||
Capital leases | 67 | 70 | |||||||||||||||||
Interest income | (51) | (51) | |||||||||||||||||
Interest, net | 471 | 467 | |||||||||||||||||
Income from continuing operations before income taxes | 5,301 | 4,750 | |||||||||||||||||
Provision for income taxes | 1,834 | 1,603 | |||||||||||||||||
Income from continuing operations | 3,467 | 3,147 | |||||||||||||||||
Loss from discontinued operations, net of tax | (8) | ||||||||||||||||||
Consolidated net income | 3,467 | [1] | 3,139 | [1] | |||||||||||||||
Less consolidated net income attributable to noncontrolling interest | (143) | [1] | (117) | [1] | |||||||||||||||
Consolidated net income attributable to Walmart | $3,324 | $3,022 | |||||||||||||||||
Basic net income per common share: | |||||||||||||||||||
Basic income per common share from continuing operations attributable to Walmart | 0.88 | 0.77 | |||||||||||||||||
Basic loss per common share from discontinued operations attributable to Walmart | |||||||||||||||||||
Basic net income per common share attributable to Walmart | 0.88 | 0.77 | |||||||||||||||||
Diluted net income per common share: | |||||||||||||||||||
Diluted income per common share from continuing operations attributable to Walmart | 0.88 | 0.77 | |||||||||||||||||
Diluted loss per common share from discontinued operations attributable to Walmart | |||||||||||||||||||
Diluted net income per common share attributable to Walmart | 0.88 | 0.77 | |||||||||||||||||
Weighted-average number of common shares: | |||||||||||||||||||
Basic | 3,765 | 3,920 | |||||||||||||||||
Diluted | 3,781 | 3,930 | |||||||||||||||||
Dividends declared per common share | 1.21 | 1.09 | |||||||||||||||||
[1]Includes a $3 million loss and an $8 million gain for the first quarter of fiscal 2011 and 2010, respectively, that is related to the redeemable noncontrolling interest. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | |||
In Millions | 3 Months Ended
Apr. 30, 2010 | 3 Months Ended
Apr. 30, 2009 | 12 Months Ended
Jan. 31, 2010 |
Current assets: | |||
Cash and cash equivalents | $8,516 | $6,578 | $7,907 |
Receivables, net | 4,235 | 3,356 | 4,144 |
Inventories | 35,503 | 34,391 | 33,160 |
Prepaid expenses and other | 3,291 | 3,266 | 2,980 |
Current assets of discontinued operations | 129 | 155 | 140 |
Total current assets | 51,674 | 47,746 | 48,331 |
Property and equipment: | |||
Property and equipment | 139,811 | 127,472 | 137,848 |
Less accumulated depreciation | (39,602) | (34,145) | (38,304) |
Property and equipment, net | 100,209 | 93,327 | 99,544 |
Property under capital leases: | |||
Property under capital leases | 5,713 | 5,394 | 5,669 |
Less accumulated amortization | (2,994) | (2,617) | (2,906) |
Property under capital leases, net | 2,719 | 2,777 | 2,763 |
Goodwill | 15,859 | 14,882 | 16,126 |
Other assets and deferred charges | 3,910 | 3,358 | 3,942 |
Total assets | 174,371 | 162,090 | 170,706 |
Current liabilities: | |||
Short-term borrowings | 4,812 | 1,457 | 523 |
Accounts payable | 31,372 | 28,541 | 30,451 |
Dividends payable | 3,546 | 3,234 | |
Accrued liabilities | 15,617 | 15,263 | 18,734 |
Accrued income taxes | 2,726 | 1,810 | 1,365 |
Long-term debt due within one year | 6,012 | 5,731 | 4,050 |
Obligations under capital leases due within one year | 353 | 318 | 346 |
Current liabilities of discontinued operations | 74 | 45 | 92 |
Total current liabilities | 64,512 | 56,399 | 55,561 |
Long-term debt | 32,668 | 32,480 | 33,231 |
Long-term obligations under capital leases | 3,112 | 3,185 | 3,170 |
Deferred income taxes and other | 5,152 | 5,835 | 5,508 |
Redeemable noncontrolling interest | 325 | 277 | 307 |
Commitments and contingencies | |||
Equity: | |||
Common stock and capital in excess of par value | 4,059 | 4,048 | 4,181 |
Retained earnings | 62,486 | 61,556 | 66,638 |
Accumulated other comprehensive loss | (216) | (3,373) | (70) |
Total Walmart shareholders' equity | 66,329 | 62,231 | 70,749 |
Noncontrolling interest | 2,273 | 1,683 | 2,180 |
Total equity | 68,602 | 63,914 | 72,929 |
Total liabilities and equity | $174,371 | $162,090 | $170,706 |
1_Condensed Consolidated Statem
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) | |||||||
In Millions | Common Stock
| Capital in Excess of Par Value
| Retained Earnings
| Accumulated Other Comrehensive Loss
| Total Walmart Shareholder's Equity
| Noncontrolling Interest
| Total
|
Beginning Balances at Jan. 31, 2010 | $378 | $3,803 | $66,638 | ($70) | $70,749 | $2,180 | $72,929 |
Beginning Balances (in shares) at Jan. 31, 2010 | 3,786 | ||||||
Consolidated net income (excludes redeemable noncontrolling interest) | 3,324 | 3,324 | 146 | 3,470 | |||
Other comprehensive income | (146) | (146) | 155 | 9 | |||
Cash dividends ($1.21 per share) | (4,552) | (4,552) | (4,552) | ||||
Purchase of Company stock (in shares) | (56) | ||||||
Purchase of Company stock | (6) | (98) | (2,928) | (3,032) | (3,032) | ||
Other (in shares) | 6 | ||||||
Other | (18) | 4 | (14) | (208) | (222) | ||
Ending Balances (in shares) at Apr. 30, 2010 | 3,736 | ||||||
Ending Balances at Apr. 30, 2010 | $372 | $3,687 | $62,486 | ($216) | $66,329 | $2,273 | $68,602 |
2_Condensed Consolidated Statem
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) (USD $) | ||
3 Months Ended
Apr. 30, 2010 | 3 Months Ended
Apr. 30, 2009 | |
Cash dividends, per share | 1.21 | 1.09 |
3_Condensed Consolidated Statem
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | |||||||||||||||||||
In Millions | 3 Months Ended
Apr. 30, 2010 | 3 Months Ended
Apr. 30, 2009 | |||||||||||||||||
Consolidated net income | $3,467 | [1] | $3,139 | [1] | |||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Currency translation | (48) | [2] | (687) | [2] | |||||||||||||||
Net change in fair value of derivatives | 83 | (14) | |||||||||||||||||
Total comprehensive income | 3,502 | 2,438 | |||||||||||||||||
Less comprehensive income attributable to the noncontrolling interest | |||||||||||||||||||
Less consolidated net income attributable to noncontrolling interest | (143) | [1] | (117) | [1] | |||||||||||||||
Currency translation | (181) | [2] | 16 | [2] | |||||||||||||||
Amounts attributable to the noncontrolling interest | (324) | (101) | |||||||||||||||||
Comprehensive income attributable to Walmart | $3,178 | $2,337 | |||||||||||||||||
[1]Includes a $3 million loss and an $8 million gain for the first quarter of fiscal 2011 and 2010, respectively, that is related to the redeemable noncontrolling interest. | |||||||||||||||||||
[2]Includes a gain of $26 million and $25 million for the first quarter of fiscal 2011 and 2010, respectively, that is related to the redeemable noncontrolling interest. |
4_Condensed Consolidated Statem
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | ||
In Millions | 3 Months Ended
Apr. 30, 2010 | 3 Months Ended
Apr. 30, 2009 |
Consolidated net income, redeemable noncontrolling interest | ($3) | $8 |
Foreign currency translation, redeemable noncontrolling interest | $26 | $25 |
5_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | |||||||||||||||||||
In Millions | 3 Months Ended
Apr. 30, 2010 | 3 Months Ended
Apr. 30, 2009 | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Consolidated net income | $3,467 | [1] | $3,139 | [1] | |||||||||||||||
Loss from discontinued operations, net of tax | 8 | ||||||||||||||||||
Income from continuing operations | 3,467 | 3,147 | |||||||||||||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||||||||||
Depreciation and amortization | 1,864 | 1,700 | |||||||||||||||||
Other | (689) | (192) | |||||||||||||||||
Changes in certain assets and liabilities, net of effects of acquisitions: | |||||||||||||||||||
Decrease (increase) in accounts receivable | (97) | 419 | |||||||||||||||||
Decrease (increase) in inventories | (2,230) | 153 | |||||||||||||||||
Increase (decrease) in accounts payable | 392 | (315) | |||||||||||||||||
Decrease in accrued liabilities | (1,734) | (1,341) | |||||||||||||||||
Net cash provided by operating activities | 973 | 3,571 | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Payments for property and equipment | (2,563) | (2,607) | |||||||||||||||||
Proceeds from disposal of property and equipment | 123 | 132 | |||||||||||||||||
Other investing activities | 204 | (208) | |||||||||||||||||
Net cash used in investing activities | (2,236) | (2,683) | |||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Increase (decrease) in short-term borrowings, net | 4,299 | (266) | |||||||||||||||||
Proceeds from issuance of long-term debt | 1,971 | 1,453 | |||||||||||||||||
Payment of long-term debt | (37) | (63) | |||||||||||||||||
Dividends paid | (1,136) | (1,067) | |||||||||||||||||
Purchase of Company stock | (2,967) | (886) | |||||||||||||||||
Purchase of redeemable noncontrolling interest | (436) | ||||||||||||||||||
Other financing activities | (294) | (238) | |||||||||||||||||
Net cash provided by (used in) financing activities | 1,836 | (1,503) | |||||||||||||||||
Effect of exchange rates on cash and cash equivalents | 36 | (82) | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 609 | (697) | |||||||||||||||||
Cash and cash equivalents at beginning of year | 7,907 | 7,275 | |||||||||||||||||
Cash and cash equivalents at end of period | $8,516 | $6,578 | |||||||||||||||||
[1]Includes a $3 million loss and an $8 million gain for the first quarter of fiscal 2011 and 2010, respectively, that is related to the redeemable noncontrolling interest. |
Basis of Presentation
Basis of Presentation | |
3 Months Ended
Apr. 30, 2010 | |
Basis of Presentation | Note 1. Basis of Presentation The Condensed Consolidated Financial Statements of Wal-Mart Stores, Inc. and its subsidiaries (Walmart, the Company or we) included in this document 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. 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, 2010. Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report to Shareholders. |
Net Income Per Common Share
Net Income Per Common Share | |
3 Months Ended
Apr. 30, 2010 | |
Net Income Per Common Share | Note 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 common 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 16million shares for the three months ended April30, 2010, and 10million shares for the three months ended April30, 2009. The Company had approximately 5million and 28million stock options outstanding at April30, 2010 and 2009, respectively, which were not included in the diluted net income per common share attributable to Walmart calculation because their effect would be antidilutive. For purposes of determining consolidated net income per common share attributable to Walmart, income from continuing operations attributable to Walmart and the loss from discontinued operations, net of tax, are as follows: ThreeMonthsEnded April30, (Amounts in millions) 2010 2009 Income from continuing operations $ 3,467 $ 3,147 Less consolidated net income attributable to noncontrolling interest (143 ) (117 ) Income from continuing operations attributable to Walmart 3,324 3,030 Loss from discontinued operations, net of tax (8 ) Consolidated net income attributable to Walmart $ 3,324 $ 3,022 |
Inventories
Inventories | |
3 Months Ended
Apr. 30, 2010 | |
Inventories | Note 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 for Walmart International operations are primarily valued by the retail method of accounting and are stated using the first-in, first-out (FIFO) method. At April30, 2010 and 2009, our inventories valued at LIFO approximate those inventories as if they were valued at FIFO. |
Long-Term Debt
Long-Term Debt | |
3 Months Ended
Apr. 30, 2010 | |
Long-Term Debt | Note 4. Long-Term Debt On April1, 2010, the Company issued $750 million principal amount of its 2.875% Notes due 2015 and $1.250 billion principal amount of its 5.625% Notes due 2040. The aggregate net proceeds from these note issuances were approximately $2.0 billion. The notes of each series require semi-annual interest payments on April1 and October1 of each year, commencing on October1, 2010. The 2.875% Notes due 2015 will mature on April1, 2015, and the 5.625% Notes due 2040 will mature on April1, 2040. The entire principal amount of the notes of each series is payable at maturity. The notes of each series are senior, unsecured obligations of the Company. |
Fair Value Measurements
Fair Value Measurements | |
3 Months Ended
Apr. 30, 2010 | |
Fair Value Measurements | Note 5. 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 orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. A liabilitys 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 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 the Company to develop our own assumptions. The disclosure of fair value of certain financial assets and liabilities that are recorded at cost are as follows: Cash and cash equivalents: The carrying value approximates fair value due to the short maturity of these instruments. Long-term debt: The fair value is based on the Companys current incremental borrowing rate for similar types of borrowing arrangements or, where applicable, quoted market prices. The carrying value and fair value of our debt as of April30, 2010 and January31, 2010 are as follows: April30, 2010 January31, 2010 (Amounts in millions) CarryingValue FairValue CarryingValue FairValue Long-term debt $ 38,680 $ 40,748 $ 37,281 $ 39,055 Additionally, as of April30, 2010 and January31, 2010, 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 relate to interest rate swaps. The fair values of these interest rate swaps have been measured in accordance with Level 2 inputs of the fair value hierarchy. As of April30, 2010 and January31, 2010, the notional amounts and fair values of these interest rate swaps are as follows (asset/(liability)): April30, 2010 January31, 2010 (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 $ 4,445 $ 258 $ 4,445 $ 260 Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as net investment hedges 1,250 268 1,250 189 Receive floating-rate, pay fixed-rate interest rate swaps designated as cash flow hedges 638 (20 ) 638 (20 ) Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges 2,902 215 2,902 286 Total $ 9,235 $ 721 $ 9,235 |
Derivative Financial Instrument
Derivative Financial Instruments | |
3 Months Ended
Apr. 30, 2010 | |
Derivative Financial Instruments | Note 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 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 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 if the derivative liability position exceeds certain thresholds. 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 held $294 million in cash collateral from these counterparties at April30, 2010. 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. As of April30, 2010, the Company had no outstanding collateral postings. In the event the Company posts cash collateral, the Company would record the posting as a receivable exclusive of any derivative liability. When the Company uses derivative financial instruments for purposes of hedging its exposure to interest and currency exchange rates, the 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 until the hedged item is recognized in earnings. The ineffective portion of an instruments change in fair value will be immediately recognized in the Companys earnings during the period. 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 |
Segments
Segments | |
3 Months Ended
Apr. 30, 2010 | |
Segments | Note 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 Chile and Mexico and our joint ventures in China and India and our other controlled subsidiaries in China. The Company defines our segments as those business units whose operating results our chief operating decision maker (CODM) regularly reviews to analyze performance and allocate resources. We sell similar individual products and services in each of our segments. It is impractical to segregate and identify revenue and profits for each of these individual products and services. As part of an operational realignment in February 2010, our Puerto Rico operations shifted from the Walmart International segment to the Walmart U.S. and Sams Club segments. The Walmart U.S. segment now includes the Companys mass merchant concept in the United States and Puerto Rico operating primarily under the Walmart or Wal-Mart brands, as well as walmart.com. The Walmart International segment now consists of the Companys operations outside of the United States and Puerto Rico. The Sams Club segment now includes the warehouse membership clubs in the United States and Puerto Rico, as well as samsclub.com. All prior periods presented have been restated to maintain comparability. The amounts under the caption Other in the Operating Income table below represent unallocated corporate overhead items. The Company measures the results of its segments using, among other measures, each segments operating income that includes certain corporate overhead allocations. From time to time, we revise the measurement of each segments operating income, including any corporate overhead allocations, as dictated by the information regularly reviewed by our CODM. When we do so, the segment operating income for each segment affected by the revisions is restated for all periods presented to maintain comparability. In the first quarter of fiscal 2011, certain information systems expenses previously included in unallocated corporate overhead have been allocated to the segment that is directly benefitting from these costs. Net sales by operating segment were as follows: ThreeMonthsEnded April30, (Amounts in millions) 2010 2009 Net Sales: Walmart U.S. $ 62,324 $ 61,627 Walmart International 25,030 20,621 Sams Club 11,743 11,223 Total Company $ 99,097 $ 93,471 Operating income by segment was as follows: ThreeMonthsEnded April30, (Amounts in millions) 2010 2009 Operating Income: Walmart U.S. $ 4,638 $ 4,391 Walmart International 1,095 857 Sams Club 429 393 Other (390 ) (424 ) Operating income $ 5,772 $ 5,217 Interest expense, net (471 ) (467 ) Income from continuing operations before income taxes $ 5,301 $ 4,750 The follo |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | |
3 Months Ended
Apr. 30, 2010 | |
Accumulated Other Comprehensive Loss | Note 8. Accumulated Other Comprehensive Loss The following table sets forth the changes in the composition of accumulated other comprehensive loss for the three months ended April30, 2010: (Amounts in millions) Currency Translation Derivative Instruments Minimum Pension Liability Total Balances at February1, 2010 $ 348 $ 77 $ (495 ) $ (70 ) Currency translation adjustment (229 ) (229 ) Net change in fair value of derivatives 83 83 Balances at April30, 2010 $ 119 $ 160 $ (495 ) $ (216 ) The currency translation adjustment includes a net translation loss of $992 million at April30, 2010 related to net investment hedges of our operations in the U.K. and Japan. During the first three months of fiscal 2011, we reclassified $128 million from accumulated other comprehensive loss to earnings to offset currency translation gains on the re-measurement of non-U.S. denominated debt. |
Common Stock Dividends
Common Stock Dividends | |
3 Months Ended
Apr. 30, 2010 | |
Common Stock Dividends | Note 9. Common Stock Dividends On March4, 2010, the Companys Board of Directors approved an increase in the annual dividend for fiscal 2011 to $1.21 per share, an increase of 11% over the dividends paid in fiscal 2010. The annual dividend will be paid in four quarterly installments on April5, 2010,June1, 2010,September7, 2010 and January3, 2011 to holders of record on March12,May14,August13 and December10, 2010, respectively. The dividend installments payable on April5, 2010 and June1, 2010 were paid as scheduled. |
Legal Proceedings
Legal Proceedings | |
3 Months Ended
Apr. 30, 2010 | |
Legal Proceedings | Note 10. 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 Companys Condensed Consolidated Financial Statements. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and therefore accruals have 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 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 various cases containing class-action allegations in which the plaintiffs are current and former hourly associates who allege that the Company committed wage-and-hour violations by failing to provide rest breaks, meal periods, or other benefits, or otherwise by failing 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. In one of the wage-and-hour lawsuits, Braun/Hummel v. Wal-Mart Stores, Inc., a trial was commenced in September 2006, 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 October13, 2006, the 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 November14, 2007, the trial judge entered a final judgment in the approximate amount of $188 million, which included the jurys back-pay award plus statutory penalties, prejudgment interest and attorneys fees. The Company believes it has substantial factual and legal defenses to the claims at issue, and on December7, 2007, the Company filed its Notice of Appeal. Exempt Status Cases: The Company is a defendant in several cases in which the plaintiffs seek class or collective certification of various groups of salaried managers, and challenge their exempt status under state and federal laws. In one of those cases (Sepulveda v. Wal-Mart Stores, Inc.),class certification was denied by the trial court on May5, 2006. On April25, 2008, a three-judge panel of the United States Court of Appeals for the Ninth Circuit affirmed the trial courts ruling in part and reversed it in part, and remanded the case for further proceedings. On May16, 2008, the Company filed a petition seeking review of that ruling by a larger panel of the court. On October10, 2008, the court entered an O |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | |
3 Months Ended
Apr. 30, 2010 | |
Recent Accounting Pronouncements | Note 11. Recent Accounting Pronouncements A new accounting standard, effective for the first annual reporting period beginning after November15, 2009 and for interim periods within that first annual reporting period, changes the approach to determining the primary beneficiary of a variable interest entity (VIE) and requires companies to assess more frequently whether they must consolidate VIEs. The Company adopted this new standard on February1, 2010. The adoption of this new standard did not have a material impact on our Consolidated Financial Statements. |
Subsequent Events
Subsequent Events | |
3 Months Ended
Apr. 30, 2010 | |
Subsequent Events | Note 12. Subsequent Events On May27, 2010, we announced an agreement with Dansk Supermarked A/S, whereby ASDA, our subsidiary in the United Kingdom, will purchase Netto Foodstores Limited (Netto). Netto operates 193 stores averaging 8,000 square feet. The transaction is subject to regulatory approval and is expected to close in fiscal 2011. The estimated purchase price is approximately 778 million. |