Walmart 2015 Annual Report Download - page 59

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2015 Annual Report
13 Acquisitions, Disposals and Related Items
In fiscal 2015, the Company completed the following transactions that
impact the operations of Walmart International:
Walmart Chile
In fiscal 2014, the redeemable noncontrolling interest shareholders
exercised put options that required the Company to purchase their
shares in Walmart Chile. At that time, 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 reflect
the redemption value of the redeemable noncontrolling interest at
$1.5 billion. In February 2014, the Company completed this transaction
using existing cash of the Company, increasing its ownership interest in
Walmart Chile to 99.7 percent. In March 2014, the Company completed a
tender offer for most of the remaining noncontrolling interest shares at
the same value per share as was paid to the redeemable noncontrolling
interest shareholders. As a result of completing these transactions, the
Company owns substantially all of Walmart Chile.
Vips Restaurant Business in Mexico
In September 2013, Walmex, a majority-owned subsidiary of the Company,
entered into a definitive agreement with Alsea S.A.B. de C.V. to sell the
Vips restaurant business (“Vips”) in Mexico. The sale of Vips was completed
on May 12, 2014. Upon completion of the sale, the Company received
$671 million of cash and recognized a net gain of $262 million, which is
recorded in discontinued operations in the Company’s Consolidated
Statements of Income for the fiscal year ended January 31, 2015.
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 business segments:
Walmart U.S., Walmart International and Sam’s Club. The Company
defines its segments as those operations whose results its chief operating
decision maker (“CODM”) regularly reviews to analyze performance and
allocate resources. The Company sells similar individual products 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
concept 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
websites. 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
reclassified to be comparable to the current period’s presentation.
Notes to Consolidated Financial Statements