Walmart 2008 Annual Report Download - page 39

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Notes to Consolidated Financial Statements
WAL-MART 2008 ANNUAL REPORT 37
Hedging instruments with an unrealized gain are recorded on the
Consolidated Balance Sheets in other current assets or other assets
and deferred charges, based on maturity date. Those instruments
with an unrealized loss are recorded in accrued liabilities or deferred
income taxes and other, based on maturity date.
Cash and cash equivalents: The carrying amount approximates
fair value due to the short maturity of these instruments.
Long-term debt: Fair value is based on the Company’s current
incremental borrowing rate for similar types of borrowing arrange-
ments or, where applicable, quoted market prices.
Fair value instruments and net investment instruments: The fair
values are estimated amounts the Company would receive or pay
to terminate the agreements as of the reporting dates.
Fair Value of Financial Instruments
Derivative nancial instruments designated for hedging:
Fiscal Year Ended January 31,
Notional Amount Fair Value
(Amounts in millions) 2008 2007 2008 2007
Received xed-rate, pay oating rate interest rate swaps designated
as fair value hedges $ 5,195 $ 5,195 $ 265 $ (1)
Received xed-rate, pay xed-rate cross-currency interest rate swaps
designated as net investment hedges (Cross-currency notional
amount: GBP 795 at 1/31/2008 and 1/31/2007) 1,250 1,250 (75) (181)
Total $ 6,445 $ 6,445 $ 190 $ (182)
Non-derivative nancial instruments:
Long-term debt $35,712 $32,650 $35,940 $32,521
4 Accumulated Other Comprehensive Income
Comprehensive income is net income plus certain other items that are recorded directly to shareholders’ equity. Amounts included in
accumulated other comprehensive income for the Company’s derivative instruments and minimum pension liabilities are recorded net of the
related income tax eects. The following table gives further detail regarding changes in the composition of accumulated other comprehensive
income during scal 2008, 2007 and 2006
Foreign Currency Derivative Minimum
(Amount in millions) Translation Instruments Pension Liability Total
Balance at January 31, 2005 $ 2,982 $ (5) $ (283) $ 2,694
Foreign currency translation adjustment (1,691) (1,691)
Change in fair value of hedge instruments (31) (31)
Reclassication to earnings 30 30
Subsidiary minimum pension liability 51 51
Balance at January 31, 2006 $ 1,291 $ (6) $ (232) $ 1,053
Foreign currency translation adjustment 1,584 1,584
Change in fair value of hedge instruments 123 123
Reclassication to earnings (117) (117)
Subsidiary minimum pension liability (15) (15)
Adjustment for initial application of SFAS 158, net of tax (120) (120)
Balance at January 31, 2007 $2,875 $ — $(367) $2,508
Foreign currency translation adjustment 1,218 1,218
Subsidiary minimum pension liability 138 138
Balance at January 31, 2008 $4,093 $ — $(229) $3,864