Walmart 2008 Annual Report Download - page 37

Notes to Consolidated Financial Statements
WAL-MART 2008 ANNUAL REPORT 35
Accrued Liabilities
Accrued liabilities consist of the following:
January 31,
(Amounts in millions) 2008 2007
Accrued wages and benets $ 5,247 $ 5,347
Self-insurance 2,907 2,954
Other 7,645 6,374
Total accrued liabilities $15,799 $14,675
Net Income Per Common Share
Basic net income per common share is based on the weighted-
average number of outstanding common shares. Diluted net income
per common share is based on the weighted-average number of
outstanding shares adjusted for the dilutive eect of stock options
and other share-based awards. The dilutive eect of stock options
and other share-based awards was 6 million, 4 million and 5 million
shares in scal 2008, 2007 and 2006, respectively. The Company had
approximately 62 million, 62 million and 57 million option shares
outstanding at January 31, 2008, 2007 and 2006, respectively, which
were not included in the diluted net income per share calculation
because their eect would be antidilutive.
Estimates and Assumptions
The preparation of our Consolidated Financial Statements in conformity
with generally accepted accounting principles requires management
to make estimates and assumptions. These estimates and assumptions
aect the reported amounts of assets and liabilities. They also aect
the 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
may dier from those estimates.
Reclassications
Certain reclassications have been made to prior periods to conform
to current presentations.
2 Commercial Paper and Long-term Debt
Information on short-term borrowings and interest rates is as follows
(dollars in millions):
Fiscal Year
(Amounts in millions) 2008 2007 2006
Maximum amount
outstanding at any month-end $9,176 $7,968 $9,054
Average daily
short-term borrowings 5,657 4,741 5,719
Weighted-average interest rate 4.9% 4.7% 3.4%
Short-term borrowings consisted of $5.0 billion and $2.6 billion
of commercial paper at January 31, 2008 and 2007, respectively.
At January 31, 2008, the Company had committed lines of credit of
$8.5 billion with 30 rms and banks, which were used to support
commercial paper. The committed lines of credit mature at varying
times starting between June 2008 and June 2012, carry interest rates
of LIBOR plus 11 to 15 basis points and at prime plus zero to 50 basis
points, and incur commitment fees of 1.5 to 7.5 basis points on
undrawn amounts.
Long-term debt at January 31 for each scal year presented consists of:
(Amounts in millions)
Interest Rate Due by Fiscal Year 2008 2007
0.310 – 11.750%,
LIBOR less 0.10% Notes due 2009 $ 4,688 $ 4,372
1.200 – 6.875% Notes due 2010 4,584 4,614
5.250% Notes due 2036 4,487 4,465
0.1838 – 10.880% Notes due 2011(1) 3,511 3,292
6.500% Notes due 2038 3,000 —
0.750 – 7.250% Notes due 2014 2,982 2,970
1.200 – 4.125% Notes due 2012 2,481 2,426
5.750 – 7.550% Notes due 2031 1,994 1,983
4.875% Notes due 2039 1,987 1,966
2.950 – 5.800% Notes due 2019(1) 1,764 515
3.750 – 5.375% Notes due 2018 1,027 28
3.150 – 6.630% Notes due 2016 765 769
5.875% Notes due 2028 750 —
1.600 – 5.000% Notes due 2013 516 18
6.750% Notes due 2024 250 250
2.300 – 2.875% Notes due 2015 42 45
2.000 – 2.500% Notes due 2017 24 37
2.875 – 13.750%,
LIBOR less 0.1025% Notes due 2008 — 3,141
5.502% Notes due 2027 — 1,000
Other(2) 860 759
Total $35,712 $32,650
(1) Notes due in 2011 and 2019 both include $500 million put options.
(2) Includes adjustments to debt hedged by derivatives.
The Company has $1.0 billion in debt with embedded put options.
The holders of one $500 million debt issuance may require the Com-
pany to repurchase the debt at par plus accrued interest at any time.
One issue of money market puttable reset securities in the amount
of $500 million is structured to be remarketed in connection with the
annual reset of the interest rate. If, for any reason, the remarketing
of the notes does not occur at the time of any interest rate reset, the
holders of the notes must sell, and the Company must repurchase,
the notes at par. All of these issuances have been classied as long-
term debt due within one year in the Consolidated Balance Sheets.
Under certain lines of credit totaling $8.5 billion, which were
undrawn as of January 31, 2008, the Company has agreed to observe
certain covenants, the most restrictive of which relates to maximum
amounts of secured debt and long-term leases. In addition, one of
our subsidiaries has restrictive nancial covenants on $2.0 billion of
long-term debt that requires it to maintain certain equity, sales, and
prot levels.