Walmart 2008 Annual Report Download - page 47

Notes to Consolidated Financial Statements
WAL-MART 2008 ANNUAL REPORT 45
Employees in foreign countries who are not U.S. citizens are covered
by various post-employment benet arrangements. These plans are
administered based upon the legislative and tax requirements in
the countries in which they are established. Annual contributions to
foreign retirement savings and prot sharing plans are made at the
discretion of the Company, and were $267 million, $274 million and
$244 million in scal 2008, 2007 and 2006, respectively.
The Company’s subsidiaries in the United Kingdom and Japan have
dened benet pension plans. The plan in the United Kingdom was
overfunded by $5 million at January 31, 2008 and underfunded by
$251 million at January 31, 2007. The plan in Japan was underfunded
by $202 million and $208 million at January 31, 2008 and 2007, respec-
tively. These underfunded amounts have been recorded in our
Consolidated Balance Sheets upon the adoption of SFAS 158. Certain
other foreign operations have dened benet arrangements that
are not signicant.
11 Segments
The Company is engaged in the operations of retail stores located
in all 50 states of the United States, Argentina, Brazil, Canada, Puerto
Rico and the United Kingdom and through majority-owned subsid-
iaries in Central America, Japan, and Mexico. The Company operates
retail stores in China through joint ventures and through its invest-
met in BCL. The Company identies segments in accordance with
the criteria set forth in Statement of Financial Accounting Standards
No. 131, “Disclosures about Segments of an Enterprise and Related
Information” and is primarily based on the operations of the Com-
pany that our chief operating decision maker regularly reviews to
analyze performance and allocate resources among business units
of the Company.
The Wal-Mart Stores segment includes the Company’s mass merchant
concept in the United States under the Wal-Mart brand. The Sam’s
Club segment includes the warehouse membership clubs in the
United States as well as samsclub.com. The International segment
consists of the Company’s operations outside of the United States.
The amounts under the caption “Other” in the table below relating
to operating income are unallocated corporate overhead items.
The Company measures the profit of its segments as “segment
operating income,” which is dened as income from continuing
operations before net interest expense, income taxes and minority
interest and excludes unallocated corporate overhead and results
of discontinued operations. At the beginning of scal 2008, the
Company revised the measurement of each segment’s operating
income. The measurement now includes within each operating
segment certain direct income and expense items that had previ-
ously been accounted for as unallocated corporate overhead. All
prior year measurements of segment operating income have been
restated for comparative purposes. Information on segments and
the reconciliation to income from continuing operations before
income taxes, minority interest and discontinued operations
appears in the following tables.
(Amounts in millions)
Fiscal Year Ended January 31, 2008 Wal-Mart Stores Sam’s Club International Other Consolidated
Revenues from external customers $239,529 $44,357 $90,640 $ — $374,526
Operating income (loss) 17,516 1,618 4,769 (1,907) 21,996
Interest expense, net (1,798)
Income from continuing operations before
income taxes and minority interest $ 20,198
Total assets of continuing operations $ 84,286 $11,722 $62,961 $ 4,545 $163,514
Depreciation and amortization 3,813 507 1,684 313 6,317
Fiscal Year Ended January 31, 2007 Wal-Mart Stores Sam’s Club International Other Consolidated
Revenues from external customers $ 226,294 $ 41,582 $ 77,116 $ — $ 344,992
Operating income (loss) 16,620 1,480 4,265 (1,868) 20,497
Interest expense, net (1,529)
Income from continuing operations before
income taxes and minority interest $ 18,968
Total assets of continuing operations $ 79,040 $ 11,448 $ 55,903 $ 5,196 $ 151,587
Depreciation and amortization 3,323 475 1,409 252 5,459
Fiscal Year Ended January 31, 2006 Wal-Mart Stores Sam’s Club International Other Consolidated
Revenues from external customers $ 209,910 $ 39,798 $ 59,237 $ — $ 308,945
Operating income (loss) 15,267 1,407 3,438 (1,399) 18,713
Interest expense, net (1,178)
Income from continuing operations before
income taxes and minority interest $ 17,535
Total assets of continuing operations $ 72,368 $ 10,588 $ 48,752 $ 4,522 $ 136,230
Depreciation and amortization 2,947 436 1,011 251 4,645