Walmart 1999 Annual Report Download - page 37

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International long-lived assets excluding goodwill are $4,044 mil-
lion, $3,537 million and $1,199 million in 1999, 1998 and 1997,
respectively. Additions to international long-lived assets are $732
million, $2,401 million and $317 million in 1999, 1998 and 1997,
respectively. The International segment includes all international
real estate. All of the real estate in the United States is included in
the “Other” category and is leased to Wal-Mart Stores and
SAM’S Club. The revenues in the “Other” category result from sales
to third parties by McLane Company, Inc., a wholesale distributor.
McLane offers a wide variety of grocery and non-grocery products,
which it sells to a variety of retailers including the Company’s
Wal-Mart Stores and SAM’S Club segments. McLane is not a signifi-
cant segment and therefore, results are not presented separately.
Fiscal year ended January 31,1997
Wal-Mart Stores SAM’S Club International Other Consolidated
Revenues from external customers $ 74,840 $ 19,785 $ 5,002 $ 5,232 $ 104,859
Intercompany real estate charge (income) 1,250 346 (1,596)
Depreciation and amortization 628 99 70 666 1,463
Operating income 5,033 557 24 108 5,722
Interest expense 845
Income before income taxes
and minority interest 4,877
Total assets $ 15,387 $ 3,115 $ 2,887 $ 18,215 $ 39,604
Fiscal year ended January 31,1999
Wal-Mart Stores SAM’S Club International Other Consolidated
Revenues from external customers $ 95,395 $ 22,881 $ 12,247 $ 7,111 $ 137,634
Intercompany real estate charge (income) 1,502 355 (1,857)
Depreciation and amortization 716 111 252 793 1,872
Operating income 7,075 707 551 (213) 8,120
Interest expense 797
Income before income taxes
and minority interest 7,323
Total assets $ 16,950 $ 2,834 $ 9,537 $ 20,675 $ 49,996
9 Segments
The Company and its subsidiaries are principally engaged in the
operation of mass merchandising stores located in all 50 states,
Argentina, Canada, Germany, and Puerto Rico, and through joint
ventures in China and Korea, and through majority-owned sub-
sidiaries in Brazil and Mexico.
The Company identifies segments based on management
responsibility within the United States and geographically for all
international units. The Wal-Mart Stores segment includes
the Company’s discount stores and Supercenters in the United
States. The SAM’S Club segment includes the warehouse member-
ship clubs in the United States. The Company’s operations in
Argentina, Brazil, Germany, Mexico, China and Korea are consoli-
dated using a December 31 fiscal year end, generally due to statu-
tory reporting requirements. The Company’s operations in Canada
and Puerto Rico are consolidated using a January 31 fiscal year
end. There were no significant intervening events which material-
ly affected the financial statements. The Company measures seg-
ment profit as operating profit, which is defined as income before
interest expense, income taxes and minority interest. Information
on segments and a reconciliation to income, before income taxes
and minority interest, are as follows (in millions):
Fiscal year ended January 31,1998
Wal-Mart Stores SAM’S Club International Other Consolidated
Revenues from external customers $ 83,820 $ 20,668 $ 7,517 $ 5,953 $ 117,958
Intercompany real estate charge (income) 1,375 349 (1,724)
Depreciation and amortization 674 104 118 738 1,634
Operating income 5,833 616 262 (208) 6,503
Interest expense 784
Income before income taxes
and minority interest 5,719
Total assets $ 16,229 $ 2,933 $ 7,390 $ 18,832 $ 45,384