Drug Stores: Walmart

Drug Stores: Walmart Eric Biro

Expanding the Statements • Purpose: accurately classify enterprise activities and financing activities in consolidated accounts • Procedure: read notes, understand company, apply notes to balance sheet and income statement

Note 1 – Accounting Policies • Cash • 79% of cash held internationally – no repatriation planned • Additional 9% restricted • Inventory • U.S. – LIFO retail method (LCM) • International – FIFO retail method • Sam’s Club – LIFO weighted-average • LIFO value approximates FIFO value

Note 1 – Accounting Policies • Property and equipment • Goodwill and other acquired intangibles

Note 5 – Accrued Liabilities

Note 6 – Debt • Nearly all debt is unsecured • Weighted average interest rate • Short-term: 0.1% • Long-term: 4.3% • Total: 3.62%

Note 9 – Taxes

Note 9 – Taxes • Backed these amounts out of the proper line items

Balance Sheet – Assets

Balance Sheet – Liabilities

Balance Sheet - Equity

Note 14 – Segments

Note 12 – Retirement-Related Benefits • U.S. – defined contribution plan only [401(k)] • International – only material defined benefit plans in Japan, United Kingdom • Not enough information provided to add more than a contribution expense line item • $1,062 million FY 2013, $1,010 million FY 2012

Note 1 – Accounting Policies • Costs expensed through SG&A: • Advertising • Pre-opening • Share-based compensation (primarily restricted stock)

Income Statement

Points of Interest • Walmart’s size allows it to aggregate many line items and high-level categories that would be broken out in smaller companies • For finding some defined benefit plan information, expected more footnote disclosure

Drug Stores: Walmart