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Financial Statement Presentation
Although subject to master netting arrangements, the Company does not oset derivative assets and derivative liabilities in its Consolidated Balance
Sheets. Derivative instruments with an unrealized gain are recorded in the Company’s Consolidated Balance Sheets as either current or non-current
assets, based on maturity date, and those hedging instruments with an unrealized loss are recorded as either current or non-current liabilities, based
on maturity date.
The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classied
as follows in the Company’s Consolidated Balance Sheets:
January 31, 2014 January 31, 2013
Fair Value Net Investment Cash Flow Fair Value Net Investment Cash Flow
(Amounts in millions) Instruments Instruments Instruments Instruments Instruments Instruments
Derivative instruments
Prepaid expenses and other $ 5 $ — $ — $29 $ — $ —
Other assets and deferred charges — 97 619 31 223 327
Derivative asset subtotals $ 5 $ 97 $619 $60 $ 223 $327
Accrued liabilities $— $ — $ 1 $— $ — $ 4
Deferred income taxes and other — — 1 — — 91
Derivative liability subtotals $— $ — $ 2 $— $ — $ 95
Nonderivative hedging instruments
Long-term debt due within one year $— $ 973 $ — $— $ 818 $ —
Long-term debt — 5,095 — — 6,145 —
Nonderivative hedge
liability subtotals $— $6,068 $ — $— $6,963 $ —
Gains and losses related to the Company’s derivatives primarily relate to interest rate hedges, which are included in interest, net, in the Company’s
Consolidated Statements of Income. Amounts related to the Company’s derivatives expected to be reclassied from accumulated other comprehensive
income (loss) to net income during the next 12 months are not signicant.
9 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) 2014 2013 2012
U.S. $19,412 $19,352 $18,685
Non-U.S. 5,244 6,310 5,647
Total income from continuing
operations before income taxes $24,656 $25,662 $24,332
A summary of the provision for income taxes is as follows:
Fiscal Years Ended January31,
(Amounts in millions) 2014 2013 2012
Current:
U.S. federal $6,377 $5,611 $4,596
U.S. state and local 719 622 743
International 1,523 1,743 1,383
Total current tax provision 8,619 7,976 6,722
Deferred:
U.S. federal (72) 38 1,444
U.S. state and local 37 (8) 57
International (479) (48) (299)
Total deferred tax expense (benet) (514) (18) 1,202
Total provision for income taxes $8,105 $7,958 $7,924
52 Walmart 2014 Annual Report
Notes to Consolidated Financial Statements