Walmart 2014 Annual Report Download - page 59

respectively. These underfunded amounts are recorded as liabilities in the
Company’s Consolidated Balance Sheets in deferred income taxes and
other. Certain other international operations also have dened benet
arrangements that are not signicant.
In scal 2012, Asda and the trustees of Asda’s dened benet plan agreed
to remove future benet accruals from the plan and, with the consent
of a majority of the plan participants, also removed the link between
past accrual and future pay increases. In return, Asda paid approximately
$70 million in scal 2012 to the plan participants. The related curtailment
gain of approximately $90 million was recorded in scal 2012 as a decrease
to deferred actuarial losses in other comprehensive income.
The following table summarizes the contribution expense related to the
Company’s retirement-related benets for scal 2014, 2013 and 2012:
Fiscal Years Ended January 31,
(Amounts in millions) 2014 2013 2012
Defined contribution plans:
U.S. $ 877 $ 818 $ 752
International 165 166 230
Defined benefit plans:
International 20 26 54
Total contribution expense for
retirement-related benets $1,062 $1,010 $1,036
13 Acquisitions, Disposals and Related Items
The Company has completed, or is in process of completing, the following
transactions that impact the operations of Walmart International:
India Operations
During scal 2014, the Company acquired, for $100 million, the remaining
ownership interest in Bharti Walmart Private Limited, previously a joint
venture between Bharti Ventures Limited (“Bharti”) and the Company
established in 2007, which operated the Company’s wholesale cash &
carry business in India. Upon completion of the transaction, the Company
became the sole owner of the cash & carry business in India. In addition,
the Company also terminated its joint venture, franchise and supply
agreements with Bharti Retail Limited (“Bharti Retail”), which operates
Bharti’s retail business in India, and transferred its investment in that
business to Bharti. In connection with the agreements related to the
Bharti retail business, the Company paid and forgave indebtedness of
approximately $234 million and recorded a net loss of approximately
$151 million in the Company’s Consolidated Statements of Income.
Walmart Chile
In September 2013, certain redeemable noncontrolling interest
shareholders exercised put options that required the Company to
purchase a portion of their shares in Walmart Chile at the mutually
agreed upon redemption value to be determined after exercise of
the put options. In scal 2014, the Company recorded an increase to
redeemable noncontrolling interest of $1.0 billion, with a corresponding
decrease to capital in excess of par value, to reect the estimated
redemption value of the redeemable noncontrolling interest at $1.5 billion.
Subsequent to the initial exercise, the Company negotiated with the
redeemable noncontrolling interest shareholders to acquire all of their
redeemable noncontrolling interest shares. The Company completed
this transaction in February 2014, after period end, using its existing cash
and bringing its ownership interest in Walmart Chile to approximately
99.7 percent. The Company has since initiated a tender oer for the
remaining 0.3 percent noncontrolling interest held by the public in
Chile at the same value per share as was paid to the redeemable
noncontrolling interest shareholders. The tender oer will expire in
the rst quarter of scal 2015.
Vips Restaurant Business in Mexico
In September 2013, Walmex, a majority-owned subsidiary of the Company,
entered into a denitive agreement with Alsea S.A.B. de C.V. to dispose
of Walmex’s Vips restaurant business (“Vips”) in Mexico for approximately
$625 million. Accordingly, the Vips operating results are presented as
discontinued operations in the Company’s Consolidated Statements of
Income for scal 2014, 2013 and 2012. Additionally, the Vips assets and
liabilities to be disposed of are reported separately in the Company’s
Consolidated Balance Sheets as of January 31, 2014. The Vips sale is
subject to approval by Mexican regulatory authorities and is currently
expected to close during the rst half of scal 2015. Upon completion
of this transaction, the Company expects to record a net gain, which will
be recorded in discontinued operations in the Company’s Consolidated
Statements of Income.
14 Segments
The Company is engaged in the operation of retail, wholesale and other
units located in the U.S., Africa, Argentina, Brazil, Canada, Central
America, Chile, China, India, Japan, Mexico and the United Kingdom.
The Company’s operations are conducted in three reportable business
segments: Walmart U.S., Walmart International and Sam’s Club. The
Company denes its segments as those operations whose results its chief
operating decision maker (“CODM”) regularly reviews to analyze perfor-
mance and allocate resources. The Company sells similar individual prod-
ucts and services in each of its segments. It is impractical to segregate
and identify revenues for each of these individual products and services.
The Walmart U.S. segment includes the Company’s mass merchant con-
cept in the U.S. operating under the “Walmart” or “Wal-Mart” brands, as
well as walmart.com. The Walmart International segment consists of the
Company’s operations outside of the U.S., including various retail web-
sites. The Sam’s Club segment includes the warehouse membership
clubs in the U.S., as well as samsclub.com. Corporate and support con-
sists of corporate overhead and other items not allocated to any of the
Company’s segments.
The Company measures the results of its segments using, among other
measures, each segment’s net sales and operating income, which
includes certain corporate overhead allocations. From time to time, the
Company revises the measurement of each segment’s operating
income, including any corporate overhead allocations, as determined by
the information regularly reviewed by its CODM. When the measure-
ment of a segment changes, previous period amounts and balances are
reclassied to be comparable to the current period’s presentation.
Walmart 2014 Annual Report 57
Notes to Consolidated Financial Statements