Walmart 2004 Annual Report Download - page 34

operations of the variable interest entity in its financial statements. FIN 46-R applies immediately to variable interest entities that were
created or for which control was obtained after January 31, 2003, at the end of the first interim period ended after December 15, 2003,
for variable interest entities that are special purpose entities and at the end of the first interim period ending after March 15, 2004, for
all other entities established on or before January 31, 2003.
The Company has adopted the provisions of FIN 46-R for the year ending January 31, 2004, for any variable interest entities created
after January 31, 2003, and any variable interest entities that are special purpose entities with no impact on our financial statements.
The Company will adopt the provisions of FIN 46-R for our financial statements for the first quarter ending April 30, 2004, for any
variable interest entities created before February 1, 2003. As the net sales and total assets of entities affected by FIN 46-R represent less
than 1% of the Company’s net sales and total assets, we do not expect the adoption of this provision of FIN 46-R to have a material
impact on our financial statements.
Forward-Looking Statements
This Annual Report contains statements that Wal-Mart believes are “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, which statements are intended to enjoy the protection of the safe harbor for forward-looking
statements provided by that Act. These forward-looking statements generally can be identified by use of phrases such as “believe,”
“expect,” “anticipate,” “intend,” “plan,” “foresee” or other similar words or phrases. Similarly, descriptions of our objectives, strategies,
plans, goals or targets are also forward-looking statements. These statements discuss, among other things, expected growth, future
revenues, future cash flows, future capital expenditures, future performance and the anticipation and expectations of Wal-Mart and its
Management as to future occurrences and trends. These forward-looking statements are subject to risks, uncertainties and other factors,
in the United States and internationally, that could affect our financial performance, business strategy, plans, goals and objectives.
Those risks, uncertainties and other factors include the cost of goods, the cost of electricity and other energy requirements, competitive
pressures, inflation, consumer spending patterns and debt levels, currency exchange fluctuations, trade restrictions, changes in tariff
and freight rates, unemployment levels, interest rate fluctuations and other capital market conditions, weather patterns, natural
disasters, social and political conditions such as war, political unrest and terrorism, and other risks. Moreover, we typically earn a
disproportionate part of our annual operating income in the fourth quarter as a result of the seasonal buying patterns. Those buying
patterns are difficult to forecast with certainty. We discuss certain of these matters more fully in other of our filings with the SEC,
including our Annual Report on Form 10-K. We filed our Annual Report on Form 10-K for our fiscal year 2004 with the SEC on or about
April 9, 2004. Actual results may materially differ from anticipated results described in these statements as a result of changes in facts,
assumptions not being realized or other circumstances. You are urged to consider all of these risks, uncertainties and other factors
carefully in evaluating the forward-looking statements. As a result of these matters, including changes in facts, assumptions not
being realized or other circumstances, our actual results may differ materially from historical results or from anticipated results
expressed or implied in these forward-looking statements. The forward-looking statements included in this Annual Report are made
only as of the date of this report, and we undertake no obligation to update these forward-looking statements to reflect subsequent
events or circumstances.
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