Walmart 2013 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2013 Walmart annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

40 || Walmart 2013 Annual Report
2 Net Income Per Common Share
Basic income per common share from continuing operations attributable
to Walmart is based on the weighted-average common shares outstanding
during the relevant period. Diluted income per common share from
continuing operations attributable to Walmart is based on the weighted-
average common shares outstanding during the relevant period
adjusted for the dilutive e ect of outstanding stock options and other
share-based awards. The Company had approximately 37 thousand,
1 million and 4 million stock options and other share-based awards
outstanding that were antidilutive and not included in the calculation
of diluted income per common share from continuing operations
attributable to Walmart for  scal 2013, 2012 and 2011, respectively.
The following table provides a reconciliation of the numerators and
denominators used to determine basic and diluted income per common
share from continuing operations attributable to Walmart:
Fiscal Years Ended January 31,
(Amounts in millions, except per share data) 2013 2012 2011
Numerator
Income from continuing operations $17,756 $16,454 $15,959
Less consolidated net income
attributable to noncontrolling
interest (757) (688) (604)
Income from continuing operations
attributable to Walmart $16,999 $15,766 $15,355
Denominator
Weighted-average common shares
outstanding, basic 3,374 3,460 3,656
Dilutive impact of stock options
and other share-based awards 15 14 14
Weighted-average common shares
outstanding, diluted 3,389 3,474 3,670
Income per common share
from continuing operations
attributable to Walmart
Basic $ 5.04 $ 4.56 $ 4.20
Diluted 5.02 4.54 4.18
3 Shareholders’ Equity
Share-Based Compensation
The Company has awarded share-based compensation to associates
and nonemployee directors of the Company. The compensation expense
recognized for all plans was $378 million, $355 million and $371 million
for  scal 2013, 2012 and 2011, respectively. Share-based compensation
expense is included in operating, selling, general and administrative
expenses in the Company’s Consolidated Statements of Income. The
total income tax bene t recognized for share-based compensation was
$142 million, $134 million and $141 million for  scal 2013, 2012 and 2011,
respectively. The following table summarizes the Company’s share-based
compensation expense by award type:
Fiscal Years Ended January 31,
(Amounts in millions) 2013 2012 2011
Restricted stock and performance
share awards $152 $142 $162
Restricted stock rights 195 184 157
Stock options 31 29 52
Share-based compensation
expense $378 $355 $371
The Company’s shareholder-approved Stock Incentive Plan of 2010
(the “Plan”) became e ective June 4, 2010 and amended and restated
the Company’s Stock Incentive Plan of 2005. The Plan was established
to grant stock options, restricted (non-vested) stock, performance shares
and other equity compensation awards for which 210 million shares of
common stock issued or to be issued under the Plan have been registered
under the Securities Act of 1933, as amended. The Company believes
that such awards serve to align the interests of its associates with those
of its shareholders.
The Plan’s award types are summarized as follows:
• Restricted Stock and Performance Share Awards. Restricted stock awards are
for shares that vest based on the passage of time and include restrictions
related to employment. Performance share awards vest based on the
passage of time and achievement of performance criteria and may range
from 0% to 150% of the original award amount. Vesting periods for these
awards are generally between three and  ve years. Restricted stock and
performance share awards may be settled or deferred in stock and are
accounted for as equity in the Company’s Consolidated Balance Sheets.
The fair value of restricted stock awards is determined on the date of
grant and is expensed ratably over the vesting period.The fair value of
performance share awards is determined on the date of grant using
the Company’s stock price discounted for the expected dividend yield
through the vesting period and is recognized over the vesting period.
Notes to Consolidated Financial Statements