Walmart 2013 Annual Report Download - page 44

42 || Walmart 2013 Annual Report
The fair value of each stock option award is estimated on the date of
grant using the Black-Scholes-Merton option valuation model that uses
various assumptions for inputs. The Company uses expected volatilities
and risk-free interest rates that correlate with the expected term of the
option when estimating an option’s fair value. The following table provides
the weighted-average assumptions used to estimate the fair values of
the Company’s stock options granted in  scal 2013, 2012 and 2011:
Fiscal Years Ended January 31,
2013 2012 2011
Dividend yield
(1)
2.8% 2.9% 2.3%
Volatility
(2)
16.2% 17.6% 17.1%
Risk-free interest rate
(3)
0.6% 1.3% 1.8%
Expected life in years
(4)
3.0 3.0 3.1
Weighted-average fair value
of options granted $10.57 $9.61 $12.53
(1) Expected dividend yield is based on the anticipated dividends over the
vesting period.
(2) Expected volatility is based on historical volatility of the Company’s stock.
(3) Risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant.
(4) Expected life in years is based on historical exercise and expiration activity of grants
with similar vesting periods.
Share Repurchase Program
From time to time, the Company repurchases shares of its common stock
under share repurchase programs authorized by the Board of Directors.
The current $15.0 billion share repurchase program has no expiration
date or other restrictions limiting the period over which the Company
can make share repurchases under the program. At January 31, 2013,
authorization for $3.7 billion of share repurchases remained under the
current share repurchase program. Any repurchased shares are
constructively retired and returned to an unissued status.
The Company considers several factors in determining when to execute
share repurchases, including, among other things, current cash needs,
capacity for leverage, cost of borrowings and the market price of its
common stock. Cash paid for share repurchases during  scal 2013, 2012
and 2011, was as follows:
Total
Number Average
of Shares Price Paid Total
Repurchased per Share Investment
Share Repurchases (in millions) (in dollars) (in billions)
Fiscal year ended January 31, 2013 113.2 $67.15 $ 7.6
Fiscal year ended January 31, 2012 115.3 54.64 6.3
Fiscal year ended January 31, 2011 279.1 53.03 14.8
Notes to Consolidated Financial Statements
4 Accumulated Other Comprehensive Income (Loss)
The following table provides the changes in the composition of total Walmart accumulated other comprehensive income (loss) for  scal 2013, 2012
and 2011:
Currency Translation Derivative Minimum
(Amounts in millions) and Other Instruments Pension Liability Total
Balances as of February 1, 2010 $ 348 $ 77 $ (495) $ (70)
Other comprehensive income (loss) 878 (17) (145) 716
Balances as of January 31, 2011 1,226 60 (640) 646
Other comprehensive income (loss) (2,032) (67) 43 (2,056)
Balances as of January 31, 2012 (806) (7) (597) (1,410)
Other comprehensive income (loss) 853 136 (166) 823
Balances as of January 31, 2013 $ 47 $129 $(763) $ (587)
Amounts included in accumulated other comprehensive income (loss) are recorded net of their related income tax e ects. The Company’s unrealized
net gains and losses on net investment hedges, included in the currency translation and other category of accumulated other comprehensive income
(loss), were not signi cant as of January 31, 2013 and January 31, 2012.