Walmart 2010 Annual Report Download - page 21

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The calculation of ROI along with a reconciliation to the calculation of ROA, the most comparable GAAP financial measurement, is as follows:
For the Years Ended January 31,
(Dollar amounts in millions) 2010 2009
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income
(1)
$ 23,950 $ 22,798
+ Interest income
(1)
181 284
+ Depreciation and amortization
(1)
7,157 6,739
+ Rent
(1)
1,808 1,751
= Adjusted operating income $ 33,096 $ 31,572
Denominator
Average total assets of continuing operations
(2)
$166,900 $162,891
+ Average accumulated depreciation and amortization
(2)
38,359 33,317
- Average accounts payable
(2)
29,650 29,597
- Average accrued liabilities
(2)
18,423 16,919
+ Rent x 8 14,464 14,008
= Average invested capital $171,650 $163,700
Return on investment (ROI) 19.3% 19.3%
CALCULATION OF RETURN ON ASSETS
Numerator
Income from continuing operations
(1)
$ 14,927 $ 13,753
Denominator
Average total assets of continuing operations
(2)
$166,900 $162,891
Return on assets (ROA) 8.9% 8.4%
As of January 31,
Certain Balance Sheet Data 2010 2009 2008
Total assets of continuing operations
(1)
$170,566 $163,234 $162,547
Accumulated depreciation and amortization 41,210 35,508 31,125
Accounts payable 30,451 28,849 30,344
Accrued liabilities 18,734 18,112 15,725
(1) Based on continuing operations only and therefore excludes the impact of closing 23 stores and the divesture of other properties of The Seiyu, Ltd. (now Walmart Japan) pursuant to a
restructuring program adopted during the third quarter of fiscal 2009. All of these activities have been disclosed as discontinued operations. Total assets as of January 31, 2010, 2009
and 2008 in the table above exclude assets of discontinued operations that are reflected in the Consolidated Balance Sheets of $140 million, $195 million and $967 million, respectively.
(2) The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2.
Management’s Discussion and Analysis of Financial
Condition and Results of Operations
Walmart 2010 Annual Report 19