Walmart 2011 Annual Report Download - page 31

Management’s Discussion and Analysis of Financial
Condition and Results of Operations
Walmart 2011 Annual Report 29
unrecognized tax benets, the reasons for such reductions and the
magnitude of their impact on our results of operations and nancial
condition, and the possibility that the resolution of certain non-U.S. federal
income tax matters could result in a material liability for us; Note 12
regarding an adverse decision in, or settlement of, certain litigation to
which Walmart is a party possibly resulting in liability adverse to Walmart;
and Note 14 regarding a charge as to a benet plan being recorded in
the rst quarter of scal 2012 . In addition, these statements include a
statement in the material in this Annual Report entitled “Our Financial
Priorities” relating to Walmart’s expectation as to the growth of its net
sales and the methods of that growth. The letter of our President and
Chief Executive Ocer appearing in this Annual Report includes forward-
looking statements that relate to: management’s expectation that sales
momentum for Walmart’s Sam’s Club segment will continue in scal
2012, Walmart’s Global Customer Insight Group helping drive growth
and Walmart continuing to leverage its resources, lower costs and
increasing its speed to market. Forward-looking statements appear in this
Annual Report under the heading “Walmart – Leveraging our foundation
to reach more American families” and relate to management’s expectations
regarding implementation of a four-point plan to improve comparable
stores sales, opening our Walmart U.S. segment’s rst convenience format
stores in the second quarter of scal 2012 and the size of, and merchandise
to be sold in, those stores, and that top line sales growth will further
enhance the Walmart U.S. segment’s ability to drive expense leverage.
In addition, a forward-looking statement appears in this Annual Report
under the heading “Walmart International – Driving aggressive global
growth and increased leverage” regarding management’s expectation
for growth in the Walmart International segment in scal 2012, both
through growth in square footage in current markets and through
investments in certain formats in emerging markets. Moreover, a forward-
looking statement appears under the heading “Sam’s Club – Delivering
growth through Savings Made Simple” and relates to management’s
expectations for our Sam’s Club segment that new merchandise items will
be added and that initiatives are on the way to help the Sam’s segment
better leverage its expenses in scal 2012. The forward-looking statements
described above are identied by the use in such statements of one or
more of the words or phrases “anticipate,” “could be,” “could reduce,”
“estimated,” “expansion,” “expect,” “grow,” “is expected,” “is implementing,”
“may be reduced,” “may continue,” “may impact,” “may result,” “on the
way,” “projected,” “will be,” “will be paid,” “will be recorded,” “will continue,”
“will depend,” “will further enhance,” “will expand,” “will help drive,” “will
open,” “would be,” and “would increase,” and other similar words or phrases.
Similarly, descriptions of our objectives, strategies, plans, goals or targets
are also forward-looking statements. These statements discuss, among
other things, expected growth, future revenues, future cash ows, future
capital expenditures, future performance, future initiatives and the
anticipation and expectations of Walmart and its management as to
future occurrences and trends.
The forward-looking statements included in this Annual Report and that
we make elsewhere are subject to certain factors, in the United States
and internationally, could materially aect our nancial performance, our
results of operations, including our sales, earnings per share or comparable
store sales or comparable club sales for any period, our eective tax rate,
business operations, business strategy, plans, goals and objectives. These
factors include, but are not limited to: general economic conditions,
including changes in the economy of the United States or other countries,
economic instability, changes in the monetary policies of the United
States, the Board of Governors of the Federal Reserve System, other
governments or central banks, the current economic crisis and disruptions
in the nancial markets, including as a result of sovereign debt crises,
governmental budget decits, unemployment levels, credit availability
to consumers and businesses, levels of consumer disposable income,
consumer condence, consumer spending patterns and debt levels,
ination, deation, the cost of the goods we sell, labor costs, transportation
costs, the cost of diesel fuel, gasoline, natural gas and electricity, the cost
of healthcare benets, accident costs, our casualty and other insurance
costs, information security costs, the cost of construction materials,
availability of acceptable building sites for new stores, clubs and other
formats, competitive pressures, accident-related costs, weather patterns,
catastrophic events, storm and other damage to our stores and distribution
centers, weather-related closing of stores, availability and transport of
goods from domestic and foreign suppliers, currency exchange uctuations
and volatility, trade restrictions, changes in tari and freight rates, adoption
of or changes in tax, labor and other laws and regulations that aect our
business, costs of compliance with laws and regulations, the resolution
of tax matters, the outcome of legal proceedings to which we are a party,
interest rate uctuations, and other capital market, economic and geo-
political conditions and events, including civil unrest and terrorist attacks.
Moreover, we typically earn a disproportionate part of our annual operating
income in the fourth quarter as a result of the seasonal buying patterns.
Those buying patterns are dicult to forecast with certainty. The foregoing
list of factors that may aect our performance is not exclusive. Other
factors and unanticipated events could adversely aect our business
operations and nancial performance. We discuss certain of these matters
more fully, as well as certain risk factors that may aect our business
operations, nancial condition, results of operations and liquidity in
other of our lings with the Securities and Exchange Commission (the
“SEC”), including our Annual Report on Form 10-K. We led our Annual
Report on Form 10-K for the year ended January 31, 2011, with the SEC
on March 30, 2011. The forward-looking statements described above
are made based on knowledge of our business and the environment in
which we operate. However, because of the factors described and
listed above, as well as other factors, or as a result of changes in facts,
assumptions not being realized or other circumstance, actual results
may materially dier from anticipated results described or implied in
these forward-looking statements. We cannot assure the reader that
the results or developments expected or anticipated by us will be realized
or, even if substantially realized, that those results or developments will
result in the expected consequences for us or aect us, our business or
our operations in the way we expect. You are urged to consider all of
these risks, uncertainties and other factors carefully in evaluating the
forward-looking statements and not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this Annual Report speak only as of the date of this report, and we
undertake no obligation to update these forward-looking statements to
reect subsequent events or circumstances, except as may be required
by applicable law.