Walmart 2009 Annual Report Download - page 53

51Wal-Mart 2009 Annual Report
13 Recent Accounting Pronouncements
In September 2006, the FASB issued SFAS No. 158 which requires
recognition of the funded status of a bene t plan in the statement
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 ele-
ments as of January 31, 2007, and the measurement elements 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  nancial condition,
results of operations or liquidity.
In December 2007, the FASB issued SFAS No. 141(R), “Business Com-
binations” (“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) expands on the disclosures previously required by SFAS
141, better de nes the acquirer and the acquisition date in a busi-
ness combination and establishes principles for recognizing and
measuring the assets acquired (including goodwill), the liabilities
assumed and any noncontrolling interests in the acquired business.
SFAS 141(R) also requires an acquirer to record an adjustment to income
tax expense for changes in valuation allowances or uncertain tax
positions related to acquired businesses. SFAS 141(R) is e ective for all
business combinations with an acquisition date in the  rst annual
period following December 1, 2008; early adoption is not permitted.
The Company adopted this statement as of February 1, 2009. The
Company does not expect SFAS 141(R) to have a material impact on
the Company’s income tax expense related to adjustments for
changes in valuation allowances and tax reserves for prior business
combinations.
In December 2007, the FASB issued SFAS 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 a mezzanine section
of 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 state-
ment and establishes guidelines for accounting for changes in own-
ership percentages and for de-consolidation. SFAS 160 is e ective for
 nancial statements for  scal years beginning on or after December 1,
2008 and interim periods within those years. The Company adopted
SFAS 160 as of February 1, 2009. As SFAS 160 will only impact the
Company’s presentation of minority interests on its balance sheet,
the adoption of SFAS 160 is not expected to have a material impact
on the Company’s  nancial condition and results of operations.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about
Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161
is intended to improve  nancial reporting about derivative instru-
ments and hedging activities by requiring enhanced disclosures to
enable investors to better understand the e ects of the derivative
instruments on an entity’s  nancial position,  nancial performance
and cash  ows. The Company adopted SFAS 161 as of February 1,
2009. The Company is currently assessing the potential impact of
SFAS 161 on its  nancial statements.
In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally
Accepted Accounting Principles” (“SFAS 162”). SFAS 162 identi es the
sources of accounting principles and the framework for selecting
the principles to be used in the preparation of  nancial statements
of nongovernmental entities that are presented in conformity with
generally accepted accounting principles. SFAS 162 directs the hier-
archy to the entity, rather than the independent auditors, as the
entity is responsible for selecting accounting principles for  nancial
statements that are presented in conformity with generally accepted
accounting principles. SFAS 162 is currently e ective and its adoption
did not have a signi cant impact on our  nancial condition, results
of operations or cash  ows.
In June 2008, the FASB issued Sta Position EITF 03-06-1, “Determining
Whether Instruments Granted in Share-Based Payment Transactions
Are Participating Securities” (“FSP EITF 03-06-1”). FSP EITF 03-06-1
provides that unvested share-based payment awards that contain non-
forfeitable rights to dividends or dividend equivalents (whether paid
or unpaid) are participating securities and shall be included in the
computation of earnings per share pursuant to the two-class method
in SFAS No. 128, “Earnings per Share.” The Company adopted FSP EITF
03-06-1 as of February 1, 2009. The Company is currently assessing the
potential impact of FSP EITF 03-06-1 on its  nancial statements.
14 Subsequent Events
On March 5, 2009, the Company’s Board of Directors approved an
increase in the annual dividends for  scal year 2010 to $1.09 per share.
The annual dividend will be paid in four quarterly installments on
April 6, 2009, June 1, 2009, September 8, 2009, and January 4, 2010, to
holders of record on March 13, May 15, August 14 and December 11,
2009, respectively.
On March 27, 2009, the Company issued and sold £1.0 billion of 5.625%
Notes Due 2034 at an issue price equal to 98.981% of the notes’
aggregate principal amount. Interest started accruing on the notes
on March 27, 2009. The Company will pay interest on the notes on
March 27 and September 27 of each year, commencing on Septem-
ber 27, 2009. The notes will mature on March 27, 2034. The notes are
senior, unsecured obligations of Wal-Mart Stores, Inc.