Walmart 2002 Annual Report Download - page 40

38
10 Segments
The Company and its subsidiaries are principally engaged in the operation of mass merchandising stores located in all 50 states, Argentina,
Canada, Germany, South Korea, Puerto Rico, and the United Kingdom; through joint ventures in China; and through majority-owned
subsidiaries 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, Supercenters and
Neighborhood Markets in the United States. The SAM’S CLUB segment includes the warehouse membership clubs in the United States.
The Company’s operations in Argentina, Brazil, China, Germany, South Korea, Mexico and the United Kingdom are consolidated using a
December 31 fiscal year end, generally due to statutory reporting requirements. There were no significant intervening events which materially
affected the financial statements. The Company’s operations in Canada and Puerto Rico are consolidated using a January 31 fiscal year end.
The Company measures segment profit as operating income, which is defined as income before interest expense, income taxes, minority
interest and cumulative effect of accounting change. Information on segments and a reconciliation to income, before income taxes, minority
interest and cumulative effect of accounting change, are as follows (in millions):
Fiscal year ended January 31, 2002 Wal-Mart Stores SAM’S CLUB International Other Consolidated
Revenues from external customers $ 139,131 $ 29,395 $ 35,485 $ 13,788 $ 217,799
Intercompany real estate charge (income) 1,993 411 – (2,404) –
Depreciation and amortization 1,091 177 595 1,427 3,290
Operating income (loss) 10,305 1,028 1,458 (714) 12,077
Interest expense (1,326)
Income before income taxes and minority interest 10,751
Total assets $ 21,890 $ 3,958 $ 26,324 $ 31,279 $ 83,451
Fiscal year ended January 31, 2001 Wal-Mart Stores SAM’S CLUB International Other Consolidated
Revenues from external customers $ 121,889 $ 26,798 $ 32,100 $ 10,542 $ 191,329
Intercompany real estate charge (income) 1,766 383 – (2,149) –
Depreciation and amortization 927 147 562 1,232 2,868
Operating income (loss) 9,724 942 1,112 (288) 11,490
Interest expense (1,374)
Income before income taxes and minority interest 10,116
Total assets $ 20,286 $ 3,843 $ 25,742 $ 28,259 $ 78,130
Fiscal year ended January 31, 2000 Wal-Mart Stores SAM’S CLUB International Other Consolidated
Revenues from external customers $ 108,721 $ 24,801 $ 22,728 $ 8,763 $ 165,013
Intercompany real estate charge (income) 1,542 366 – (1,908) –
Depreciation and amortization 812 124 402 1,037 2,375
Operating income (loss) 8,701 850 817 (263) 10,105
Interest expense (1,022)
Income before income taxes, minority interest and
cumulative effect of accounting change 9,083
Total assets $ 18,213 $ 3,586 $ 25,330 $ 23,220 $ 70,349
Operating income information for fiscal years 2000 and 2001 has been reclassified to conform to current-year presentation. For this
reclassification, certain corporate expenses have been moved from the “other” category to the operating segments.
Domestic long-lived assets excluding goodwill were $33,612 million, $29,741 million and $25,227 million in 2002, 2001 and 2000,
respectively. Additions to domestic long-lived assets were $4,749 million, $6,374 million and $3,814 million in 2002, 2001 and 2000,
respectively. International long-lived assets excluding goodwill were $12,138 million, $11,193 million and $10,742 million in 2002, 2001
and 2000, respectively. Additions to International long-lived assets were $1,436 million, $711 million and $7,070 million in 2002, 2001
and 2000, respectively. The International segment includes all international real estate. The operations of the Company’s ASDA subsidiary
are significant in comparison to the total operations of the International segment. ASDA sales during fiscal 2002, 2001 and 2000 were
$15.3 billion, $14.5 billion and $7.2 billion, respectively. At January 31, 2002 and 2001, ASDA long-lived assets, including primarily net
plant, property and equipment and net goodwill, totaled $12.4 billion in each year.
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 significant segment and therefore, results are not presented separately.