Walmart 2009 Annual Report Download - page 39

37Wal-Mart 2009 Annual Report
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:
Fiscal Year Ended January 31,
(Amounts in millions) 2009 2008 2007
Maximum amount outstanding
at any month-end $7,866 $9,176 $7,968
Average daily short-term borrowings 4,520 5,657 4,741
Weighted-average interest rate 2.1% 4.9% 4.7%
Short-term borrowings consisted of $1.5 billion and $5.0 billion of
commercial paper at January 31, 2009 and 2008, respectively. The
Company has certain lines of credit totaling $10.2 billion, most of
which were undrawn as of January 31, 2009. Of the $10.2 billion in
lines of credit, $9.7 billion is committed with 29  nancial institutions.
In conjunction with these lines of credit, the Company has agreed to
observe certain covenants, the most restrictive of which relates to
maximum amounts of secured debt and long-term leases. Commit-
ted lines of credit are primarily used to support commercial paper.
The portion of committed lines of credit used to support commercial
paper remained undrawn as of January 31, 2009. The committed lines
of credit mature at varying times starting between June 2009 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.
The Company had trade letters of credit outstanding totaling $2.4 bil-
lion and $2.7 billion at January 31, 2009 and 2008, respectively. At
January 31, 2009 and 2008, the Company had standby letters of
credit outstanding totaling $2.0 and $2.2 billion, respectively. These
letters of credit were issued primarily for the purchase of inventory
and self-insurance purposes.
Long-term debt consists of:
(Amounts in millions) January 31,
Interest Rate Due by Fiscal Year 2009 2008
0.310–11.750%,
LIBOR less 0.10% Notes due 2009 $ — $ 4,688
1.200–10.96% Notes due 2010 5,656 4,584
1.200–4.125% Notes due 2012 5,353 2,481
0.750–15.27% Notes due 2014 4,822 2,982
5.250% Notes due 2036 3,954 4,487
6.500% Notes due 2038 3,000 3,000
4.875–6.200% Notes due 2039 2,954 1,987
0.1838–10.880% Notes due 2011 (1) 2,952 3,511
5.750–7.550% Notes due 2031 1,727 1,994
2.950–6.500% Notes due 2019 (1) 1,305 1,764
3.750–5.375% Notes due 2018 1,006 1,027
3.150–6.630% Notes due 2016 940 765
5.875% Notes due 2028 772 750
2.300–3.00% Notes due 2015 575 42
1.600–5.000% Notes due 2013 561 516
4.125% Notes due 2020 507 —
6.750% Notes due 2024 263 250
2.000–2.500% Notes due 2017 32 24
4.200–5.500% Notes due 2026 20 —
4.200–5.500% Notes due 2027 19 —
4.200–5.500% Notes due 2025 17 —
4.200–5.500% Notes due 2029 12 —
4.200–5.500% Notes due 2023 10 —
4.200–5.500% Notes due 2022 8 —
4.200–5.500% Notes due 2021 7 —
Other (2) 725 860
Total $37,197 $35,712
(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 issuance 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.