Walmart 2016 Annual Report Download - page 59

57Only Walmart
13. Acquisitions, Disposals and Related Items
In fiscal 2016, the Company completed the following transaction that
impacts the operations of Walmart International:
Yihaodian
In July 2015, the Company completed the purchase of all of the remaining
noncontrolling interest in Yihaodian, our e-commerce operations in
China, for approximately $760 million, using existing cash to complete
this transaction.
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. In February 2014, the Company completed this transaction
for approximately $1.5 billion 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 fiscal 2014, 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 com-
pleted on May 12, 2014. The Company received $671 million of cash and
recognized a net gain of $262 million in discontinued operations at the
time of the sale.
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 consists
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 measurement 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