Walmart 1998 Annual Report Download - page 31

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Foreign currency translation
The assets and liabilities of most foreign subsidiaries are
translated at current exchange rates and any related translation
adjustments are recorded in Consolidated Shareholders’
Equity. Operations in Brazil and Mexico operate in highly
inflationary economies and certain assets are translated
at historical exchange rates and all translation adjustments
are reflected in the Consolidated Income Statements.
Estimates and assumptions
The preparation of consolidated financial statements
in conformity with generally accepted accounting principles
requires management to make estimates and assumptions.
These estimates and assumptions affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from
those estimates.
Reclassifications
Certain reclassifications have been made to prior periods
to conform to current presentation.
2 Commercial Paper and Long-term Debt
Information on short-term borrowings and interest rates
is as follows (dollar amounts in millions):
At January 31, 1998 and 1997, there were no short-term
borrowings outstanding. At January 31, 1998, the Company
had committed lines of credit of $1,873 million with 77 banks
and informal lines of credit with various banks totaling
an additional $1,950 million, which were used to support
short-term borrowings and commercial paper. Short-term
borrowings under these lines of credit bear interest at or
below the prime rate.
Long-term debt at January 31, consists of (amounts
in millions):
Fiscal years ended January 31, 1998 1997 1996
Maximum amount outstanding at month-end $ 1,530 $ 2,209 $ 3,686
Average daily short-term borrowings 212 1,091 2,106
Weighted average interest rate 5.6% 5.3% 5.9%
1998 1997
8.625% Notes due April 2001 $ 750 $ 750
5.875% Notes due October 2005 597 597
5.614% Notes due February 2010 with biannual put options 500 –
7.500% Notes due May 2004 500 500
9.100% Notes due July 2000 500 500
6.125% Notes due October 1999 500 500
7.800%-8.250% Obligations from sale/leaseback transactions due 2014 458 466
6.500% Notes due June 2003 454 454
7.250% Notes due June 2013 445 445
7.000% - 8.000% Obligations from sale/leaseback transactions due 2013 306 314
6.750% Notes due May 2002 300 300
8.500% Notes due September 2024 250 250
6.750% Notes due October 2023 250 250
8.000% Notes due September 2006 250 250
6.125% Eurobond due November 2000 250 250
6.875% Eurobond due June 1999 250 250
6.375% Notes due March 2003 228 228
6.750% Eurobond due May 2002 200 200
5.500% Notes due March 1998 – 500
5.125% Eurobond due October 1998 – 250
7.000% Eurobond due April 1998 – 250
Other 203 205
$ 7,191 $ 7,709