Walmart 2002 Annual Report Download - page 36

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34
5 Other Accumulated Comprehensive Income
Comprehensive income is net income plus certain other items that are recorded directly to shareholders’ equity. The only items currently
applicable to the Company are foreign currency translation adjustments and hedge accounting adjustments. The following table gives further
detail regarding the changes in the composition of other accumulated comprehensive income during fiscal 2002, 2001 and 2000:
Currency Net Cash
Translation Investment Flow
Adjustment Hedges Hedges Total
Balance at January 31, 1999 ($ 458) ($ 51) $ – ($ 509)
Foreign currency translation adjustment (182) – – (182)
Change in fair value of hedging instruments – 236 – 236
Balance at January 31, 2000 ( 640) 185 – (455)
Foreign currency translation adjustment (1,126) – – (1,126)
Change in fair value of hedging instruments – 897 – 897
Balance at January 31, 2001 ( 1,766) 1,082 – (684)
Foreign currency translation adjustment (472) – – (472)
Change in fair value of hedging instruments – 315 – 315
Reclassification of tax payable on terminated hedges – (426) – (426)
Change in fair value of cash flow hedges – – 7 7
Reclassification to earnings to offset transaction gain on debt – – (8) (8)
Balance at January 31, 2002 ($ 2,238) $ 971 ($ 1) ($ 1,268)
6 Income Taxes
The income tax provision consists of the following (in millions):
Fiscal years ended January 31, 2002 2001 2000
Current
Federal $ 3,021 $ 2,641 $ 2,920
State and local 310 297 299
International 381 412 257
Total current tax provision 3,712 3,350 3,476
Deferred
Federal 230 457 (71)
State and local 17 34 (3)
International (62) (149) (183)
Total deferred tax provision (benefit) 185 342 (257)
Total provision for income taxes $ 3,897 $ 3,692 $ 3,219 (a)
(a) Total provision for income tax includes a provision on income before the cumulative effect of accounting change of $3,338 million and
a tax benefit of $119 million resulting from the cumulative effect of the accounting change.
Earnings before income taxes are as follows (in millions):
Fiscal years ended January 31, 2002 2001 2000
Domestic $ 9,523 $ 9,203 $ 8,414
International 1,228 913 669
Total earnings before income taxes $ 10,751 $ 10,116 $ 9,083