Walmart 2013 Annual Report Download - page 33

Management’s Discussion and Analysis of Financial
Condition and Results of Operations
Walmart 2013 Annual Report || 31
of operations and  nancial condition and the possibility that the resolution
of a group of related matters might result in a material liability to Walmart;
and Note 10 to our Consolidated Financial Statements regarding an
adverse decision in, or settlement of, certain litigation to which Walmart
is a party possibly resulting in material liability to Walmart and respecting
management’s expectations that the certain matters relating to an FCPA
investigation will not have a material adverse e ect on its business. The
section of this Annual Report captioned “Walmart U.S.” includes a for-
ward-looking statement that relates to management’s expectation for
the Walmart U.S. segment to add retail square feet within a certain range
and to open a number of new units within a certain range in  scal 2014.
The section of this Annual Report captioned “Sam’s Club” includes a
forward-looking statement that relates to management’s expectation for
the Sam’s Club segment opening a certain number of new clubs and
expanding or relocating a certain number of other clubs in  scal 2014.
The section of this Annual Report captioned “Global eCommerce”
includes forward-looking statements that relate to management’s goals
for our e-commerce operations. The forward-looking statements
described above are identi ed by the use in such statements of one or
more of the words or phrases “aim,” “allocation,” “anticipate,” “antici-
pated,” “commitment,” “could be,” “could potentially be, “ “could reduce,”
“estimated,” “expansion,” “expect,” “goal,” “grow,” “intend,” “is expected,”
“may continue,” “may  uctuate,” “may impact,” “may not be,” “may
result,” “objective,” “objectives,” “plan,” “plans,” “projected,” “to reduce,”
“will be,” “will be paid,” “will depend,” “will have,” “will open,” “will …
reduce,” “will strengthen,” “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, that could materially a ect our  nancial performance,
our results of operations, including our sales, earnings per share or com-
parable store sales or comparable club sales and our e ective income tax
rate for any period and our business operations, business strategy, plans,
goals or objectives. These factors include, but are not limited to: general
economic conditions, including changes in the economy of the United
States or other speci c markets in which we operate, 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, economic crises and disruptions in the  nancial markets, includ-
ing as a result of sovereign debt crises, governmental budget de cits,
unemployment and partial employment levels, employment conditions
within our markets, credit availability to consumers and businesses, levels
of consumer disposable income, consumer con dence, consumer credit
availability, consumer spending patterns, consumer debt levels, consumer
preferences, the timing of receipt of tax refund checks by consumers,
in ation, de ation, commodity prices, the cost of the goods we sell,
competitive pressures, the seasonality of our business, seasonal buying
patterns in the United States and our other markets, labor costs,
transportation costs, the cost of diesel fuel, gasoline, natural gas and
electricity, the selling prices of fuel, the cost of healthcare and other
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,
availability of quali ed labor pools in the speci c markets in which we
operate, zoning, land use and other regulatory restrictions, competitive
pressures, accident-related costs, weather conditions, patterns and
events, climate change, catastrophic events and natural disasters, as well
as storm and other damage to our stores, clubs, distribution and other
facilities, store closings and other limitations on our customers’ access to
our stores and clubs resulting from such events and disasters, disruption
in the availability of our online shopping sites on the internet, cyberattacks
on our information systems, disruption in our supply chain, including
availability and transport of goods from domestic and foreign suppliers,
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, including changes in corporate and personal tax rates and the
imposition of new taxes and surcharges, costs of compliance with laws
and regulations, the mix of our earnings from our United States and for-
eign operations, changes in our assessment of certain tax contingencies,
valuation allowances, outcome of administrative audits, the impact of
discrete items on our e ective tax rate, the resolution of tax matters,
developments in and the outcome of legal and regulatory proceedings
to which we are a party or are subject and the expenses associated
therewith, currency exchange rate  uctuations and volatility,  uctuations
in market rates of interest, and other conditions and events a ecting
domestic and global  nancial and capital markets, public health
emergencies, economic and geo-political conditions and events,
including civil unrest and disturbances 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 business operations and
 nancial performance is not exclusive. Other factors and unanticipated
events could adversely a ect our business operations and  nancial per-
formance. 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 under the heading “Item 1A. Risk Factors.” We  led
our Annual Report on Form 10-K for the  scal year ended January 31, 2013,
with the SEC on March 26, 2013. The forward-looking statements
described above are made based on knowledge of our business and the
environment in which we operate and assumptions that we believe to
be reasonable at the time such forward-looking statements are made.
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 circumstances, actual results may materially di er from
anticipated results described or implied in these forward-looking state-
ments. 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.