Walmart 1998 Annual Report Download - page 25

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Liquidity and Capital Resources
Cash Flows Information
Cash flows from operating activities were $7,123 million
in fiscal 1998, up from $5,930 million in fiscal 1997.
In fiscal 1998, the Company invested $2,636 million in capital
assets and paid dividends of $611 million and had a net cash
outlay of $1,865 million for acquisitions. Acquisitions include
the Wertkauf hypermarket chain in Germany, a
controlling interest in Cifra, S.A. de C. V. (Cifra) and the
minority interest in our Brazilian joint venture from Lojas
Americanas. See Note 6 of Notes to Consolidated Financial
Statements for additional information on our acquisitions.
Company Stock Purchase and Common Stock
Dividends
In fiscal 1998, the Company repurchased over 47 million
shares of its common stock for $1.6 billion. Subsequent to
January 31, 1998, the Company announced plans to
repurchase up to $2 billion of its common stock over the next
12 to 18 months. Additionally, the Company increased the
dividend 15% to $.31 per share for fiscal 1999.
Borrowing Information
The Company had committed lines of credit with 77 banks,
aggregating $1,873 million and informal lines of credit with
various other banks, totaling an additional $1,950 million,
which were used to support short-term borrowing and com-
mercial paper. These lines of credit and their anticipated
cyclical increases will be sufficient to finance the seasonal
buildups in merchandise inventories and for other
cash requirements.
We anticipate generating sufficient operating cash flow to
fund all capital expenditures and our Company stock
repurchase program. Accordingly, we do not plan to finance
future capital expenditures with debt. However, we do plan
to refinance existing long-term debt as it matures and may
desire to obtain additional long-term financing for other uses
of cash or for strategic reasons. We anticipate no difficulty
in obtaining long-term financing in view of our excellent
credit rating and favorable experiences in the debt market in
the recent past. In addition to the available credit lines
mentioned above, we may sell up to $251 million of public
debt under shelf registration statements on file with the
Securities and Exchange Commission.
Expansion
Domestically, we plan to open approximately 50 new
Wal-Mart stores and between 120 and 125 new Supercenters.
Approximately 90 of the Supercenters will come from
relocations or expansions of existing Wal-Mart stores.
Also planned for next fiscal year are ten new SAM’S Club
units and three distribution centers. Internationally, plans are
to develop 50 to 60 new retail units. These stores are planned
in Argentina, Brazil, Canada, China, Germany, Mexico and
Puerto Rico. Total planned growth represents approximately
26 million square feet of additional retail space.
Total planned capital expenditures for fiscal 1999
approximate $4 billion. We plan to finance our expansion
primarily with operating cash flows.
Forward-Looking Statements
Certain statements contained in Management’s Discussion
and Analysis, and elsewhere in this annual report, are
forward-looking statements. These statements discuss, among
other things, expected growth, future revenues and future
performance. The forward-looking statements are subject
to risks and uncertainties, including, but not limited to,
competitive pressures, inflation, consumer debt levels,
currency exchange fluctuations, trade restrictions, changes in
tariff and freight rates, capital market conditions and other
risks indicated in our filings with the Securities and Exchange
Commission. Actual results may materially differ from
anticipated results described in these statements.