Walmart 2008 Annual Report Download - page 49

Notes to Consolidated Financial Statements
WAL-MART 2008 ANNUAL REPORT 47
13 Recent Accounting Pronouncements
In September 2006, the FASB issued Statement of Financial Accounting
Standards No. 157, “Fair Value Measurements” (“SFAS 157”). This standard
denes fair value, establishes a framework for measuring fair value
in generally accepted accounting principles and expands required
disclosures about fair value measurements. In November 2007, the
FASB provided a one year deferral for the implementation of SFAS 157
for nonnancial assets and liabilities. The Company will adopt SFAS
157 on February 1, 2008, as required. The adoption of SFAS 157 is not
expected to have a material impact on the Company’s nancial con-
dition and results of operations. However, the Company believes it will
likely be required to provide additional disclosures as part of future
nancial statements, beginning with the rst quarter of scal 2009.
In September 2006, the FASB also issued Statement of Financial
Accounting Standards No. 158, “Employers’ Accounting for Dened
Benet Pension and Other Postretirement Plans – an amendment of
FASB Statements No. 87, 88, 106 and 132(R)” (“SFAS 158”). This standard
requires recognition of the funded status of a benet plan in the state-
ment of nancial position. The Standard also requires recognition in
other comprehensive income of certain gains and losses that arise
during the period but are deferred under pension accounting rules, as
well as modies the timing of reporting and adds certain disclosures.
The Company adopted the funded status recognition and disclosure
elements as of January 31, 2007, and will adopt measurement ele-
ments as of January 31, 2009, as required by SFAS 158. The adoption
of SFAS 158 did not have a material impact on the Company’s nan-
cial condition, results of operations or liquidity.
In February 2007, the FASB issued Statement of Financial Accounting
Standards No. 159, “The Fair Value Option for Financial Assets and
Financial Liabilities — Including an amendment of FASB Statement
No. 115” (“SFAS 159”). SFAS 159 permits companies to measure many
nancial instruments and certain other items at fair value at specied
election dates. SFAS 159 will be eective beginning February 1, 2008.
The adoption of SFAS 159 is not expected to have a material impact
on the Company’s nancial condition and results of operations.
In December 2007, the FASB issued Statement of Financial Accounting
Standards No. 141(R), “Business Combinations” (“SFAS 141(R)”).
SFAS 141(R) replaces SFAS 141, “Business Combinations,” but retains
the requirement that the purchase method of accounting for
acquisitions be used for all business combinations. SFAS 141(R) better
denes the acquirer and the acquisition date in a business combination,
establishes principles for recognizing and measuring the assets acquired
(including goodwill), the liabilities assumed and any noncontrolling
interests in the acquired business and requires expanded disclosures
than previously required by SFAS 141. SFAS 141(R) also requires that,
from the date of adoption of SFAS 141(R), any change in valuation
allowance or uncertain tax position related to an acquired business,
irrespective of the acquisition date, shall be recorded as an adjustment
to income tax expense and not as an adjustment to goodwill as had
previously been required under SFAS 141. SFAS 141(R) will be eective for
all business combinations with an acquisition date on or after February 1,
2009, and early adoption is not permitted. The Company is currently
evaluating the impact SFAS No. 141(R) will have on the Company’s
Consolidated Financial Statements.
In December 2007, the FASB issued Statement of Financial Accounting
Standards No. 160, “Noncontrolling Interests in Consolidated Financial
Statements – an amendment of ARB No. 51” (“SFAS 160”). SFAS 160
requires that noncontrolling (or minority) interests in subsidiaries be
reported in the equity section of the company’s balance sheet, rather
than in the balance sheet between liabilities and equity. SFAS 160
also changes the manner in which the net income of the subsidiary
is reported and disclosed in the controlling company’s income
statement and establishes guidelines for accounting for changes
in ownership percentages and for deconsolidation. SFAS 160 will
be eective beginning February 1, 2009. The adoption of SFAS 160 is
not expected to have a material impact on the Company’s nancial
condition and results of operations.
14 Subsequent Events
On March 6, 2008, the Company’s Board of Directors approved an
increase in annual dividends to $0.95 per share. The annual dividend
will be paid in four quarterly installments on April 7, 2008, June 2,
2008, September 2, 2008, and January 2, 2009, to holders of record
on March 14, May 16, August 15 and December 15, 2008, respectively.
In March 2008, the Company announced it was exploring strategic
options for its property development subsidiary, Gazeley Limited,
which could conclude in a sale of that business. Gazeley Limited
develops industrial distribution warehouses in the United Kingdom,
mainland Europe and China and has extended its operations to
India and Mexico.