Walmart 2011 Annual Report Download - page 46

44 Walmart 2011 Annual Report
As of January 31, 2011 and 2010, our nancial instruments were classied as follows in the accompanying Consolidated Balance Sheets:
January 31, 2011 January 31, 2010
Fair Value Net Investment Cash Flow Fair Value Net Investment Cash Flow
(Amounts in millions) Instruments Hedge Instruments Instruments Hedge Instruments
Balance Sheet Classication:
Other assets and deferred charges $267 $233 $238 $260 $189 $286
Assets subtotals $267 $233 $238 $260 $189 $286
Long-term debt $267 $ — $ — $260 $ — $ —
Deferred income taxes and other — — 18 — — 20
Liability subtotals $267 $ — $ 18 $260 $ — $ 20
Notes to Consolidated Financial Statements
10 Taxes
Income from Continuing Operations
The components of income from continuing operations before income
taxes are as follows:
Fiscal Years Ended January31,
(Amounts in millions) 2011 2010 2009
U.S. $18,398 $17,705 $16,212
Non-U.S. 5,140 4,413 4,655
Total income from continuing
operations before income taxes $23,538 $22,118 $20,867
A summary of the provision for income taxes is as follows:
Fiscal Years Ended January31,
2010 2009
(Amounts in millions) 2011 As Adjusted As Adjusted
Current:
U.S. federal $4,600 $5,798 $4,771
U.S. state and local 637 599 564
International 1,466 1,246 1,229
Total current tax provision 6,703 7,643 6,564
Deferred:
U.S. federal 818 (432) 603
U.S. state and local 39 78 41
International 19 (133) (75)
Total deferred tax provision 876 (487) 569
Total provision for income taxes $7,579 $7,156 $7,133
Eective Tax Rate Reconciliation
A reconciliation of the signicant dierences between the U.S.
statutory tax rate and the eective income tax rate on pretax income
from continuing operations is as follows:
Fiscal Years Ended January31,
2011 2010 2009
U.S. statutory tax rate 35.0% 35.0% 35.0%
U.S. state income taxes, net of
federal income tax benet 1.9% 2.0% 1.9%
Income taxed outside the U.S. -2.2% -1.6% -1.7%
Net impact of repatriated
international earnings -1.5% -3.4% -1.1%
Other, net -1.0% 0.4% 0.1%
Eective income tax rate 32.2% 32.4% 34.2%
Deferred Taxes
The signicant components of our deferred tax account balances are
as follows:
January 31,
(Amounts in millions) 2011 2010
Deferred tax assets:
Loss and tax credit carryforwards $ 2,968 $ 2,713
Accrued liabilities 3,532 3,141
Share-based compensation 332 267
Other
708 751
Total deferred tax assets 7,540 6,872
Valuation allowance (2,899) (2,167)
Deferred tax assets, net of valuation allowance $ 4,641 $ 4,705
Deferred tax liabilities:
Property and equipment $ 4,848 $ 4,015
Inventories
1,014 972
Other 474 609
Total deferred tax liabilities 6,336 5,596
Net deferred tax liabilities $ 1,695 $ 891