Walmart 2013 Annual Report Download - page 55

Walmart 2013 Annual Report || 53
13 Acquisitions
Certain acquisitions completed during  scal 2013 and 2012, are as follows:
Bounteous Company Limited (“BCL”): In February 2007, the Company
purchased an initial 35% interest in BCL, a holding company which owned
Trust-Mart, a retailer operating in China, for $264 million and, as additional
consideration, paid $376 million to extinguish a third-party loan issued to
the selling BCL shareholders that was secured by the pledge of the
remaining equity of BCL. Concurrent with its initial investment in BCL, the
Company entered into a Shareholders’ Agreement, which provided the
Company with voting rights associated with a portion of the common
stock of BCL securing the loan, amounting to an additional 30% of the
aggregate outstanding shares. During the second quarter of  scal 2013,
the Company completed its acquisition of the remaining equity interest
in BCL for an additional payment of approximately $101 million.
Massmart Holdings Limited (“Massmart”): In June 2011, the Company
completed a tender o er for approximately 51% ownership in Massmart,
a South African retailer with approximately 290 stores throughout
sub-Saharan Africa. The  nal purchase price for the acquisition was
ZAR 16.9 billion ($2.5 billion). The assets acquired were $6.9 billion,
including $3.1 billion in goodwill; liabilities assumed were $2.4 billion;
and the nonredeemable noncontrolling interest was $2.0 billion. The
Company began consolidating Massmart’s results in the quarter ended
October 31, 2011.
Netto Food Stores Limited (“Netto”): In April 2011, the Company completed
the regulatory approved acquisition of 147 Netto stores from Dansk
Supermarked in the United Kingdom. The Company has converted the
majority of these stores to the ASDA brand. The  nal purchase price for
the acquisition was £750 million ($1.2 billion). The assets acquired were
$1.3 billion, including $748 million in goodwill; and liabilities assumed
were $103 million. The Company began consolidating Netto’s results in
the quarter ended July 31, 2011.
Each of these acquisitions is consolidated as part of the Walmart
International segment. In addition, during  scal 2013, the Company
paid $316 million, net of cash acquired, for several other business
acquisitions, one of which was an acquisition of the controlling interest
in Newheight Holdings Ltd, a holding company that owns Yihaodian,
an e-commerce business in China. None of the  scal 2013 acquisitions
were signi cant, individually or in the aggregate, to the Company’s
Consolidated Financial Statements.
Disposals
During the fourth quarter of  scal 2011, the Company settled with the
Internal Revenue Service a matter related to a worthless stock deduction
from the  nal 2007 disposition of its German operations. This resulted
in a $1.0 billion tax bene t recorded in discontinued operations in the
Company’s Consolidated Statement of Income. In addition, during
 scal 2012, tax and interest expense of $67 million was recorded to
discontinued operations related to this settlement for U.S. federal
and state income tax purposes.
The assets, liabilities, net sales and cash  ows related to the Company’s
discontinued operations were not signi cant during  scal years 2013,
2012 and 2011. The income (loss) from discontinued operations, net
of income taxes, including the gain and (losses) upon disposition, are
as follows:
Fiscal Years Ended January 31,
(Amounts in millions) 2013 2012 2011
Germany $— $(67) $1,041
Seiyu — — (7)
Income (loss) from discontinued
operations, net of income taxes $— $(67) $1,034
Notes to Consolidated Financial Statements