Walmart 2013 Annual Report PDF

One mission:
2013 Annual Report
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A history of delivering strong results

More than
Approximately
Approximately
10,700
245M
75
retail units operated

in 27 countries
customers served
weekly in our stores
in 27 countries
of U.S. store
operations management
joined Walmart as
hourly associates
Increase of
Increase of
More than
59%
123%
in
earnings
per share(1)
in free
cash flow(1)(2)
60B
returned to
shareholders
through dividends
and share
repurchases(1)
(1) Data reflects five-year period from fiscal 2009 through 2013.
(2) Free cash flow is a non-GAAP measure. Net cash provided by operating activities of continuing operations is the closest GAAP measure to free cash flow. Reconciliations
and other information regarding free cash flow and its closest GAAP measure can be found in the Managements Discussion and Analysis of Financial Condition and Results
of Operations included in this Annual Report and on our website at www.stock.walmart.com.
About the cover:

Regardless of the market
where we operate, the
retail format or the
website, Walmart serves
customers with one core
mission: to help people
save money so they can
live better.
To learn more about

Walmarts business
strategies and company
mission, please visit our
electronic report at
www.stock.walmart.com.
Youll hear from management,
associates and customers
about our business.
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Many of Walmarts most innovative ideas originate from the

insights of associates across our global operations.
Michael T. Duke
President and Chief Executive Officer
Wal-Mart Stores, Inc.
To our shareholders, associates and customers

Over the last few years, Ive shared with you how we would
build the Next Generation Walmart and serve the Next
Generation customer. This came from a belief that the
major trends shaping our world are also driving significant
change in the retail landscape the emerging global middle
class, the faster adoption of mobile technology, rising energy
prices and many others. At Walmart today, we have never
had more clarity around what the world is going to look like,
and what it will take to win with the customer we care so
much about. Weve developed and executed strategies that
are delivering results, which Ill highlight in this message.
Just as important, however, are the key strategic areas where
we are especially focused and accelerating.
Financial results and key strategies
Last year, Walmart delivered a really good financial performance.
Our earnings per share increased 10.6 percent to $5.02.
With the addition of $22 billion in net sales, we are now
a $466 billion company. Our operating income was up
4.7 percent to $27.8 billion. We also grew free cash flow
18.1 percent to $12.7 billion. All of this enabled our company
to return $13 billion to shareholders in dividends and share
repurchases. In fact, Walmart shareholders enjoyed the

best overall return in stock performance and dividends
for our company this year than in more than a decade.
This success was made possible by the contributions of our
2.2 million fantastic associates around the world and their
commitment to saving people money so they can live better.
When it comes to our operating segments, Walmart U.S. is as
strong as it has ever been. Last year, we opened our 4,000th
U.S. location and added more than $10 billion in net sales,
including $4.7 billion in comp sales growth. We had positive
comp performance and grew market share in a number of
our largest categories. Walmart International continues to
be the growth engine for our company, contributing nearly
30 percent of consolidated net sales, while adding 19 million
square feet of new retail space. Improving returns in Walmart
International remains a top priority. Sams Club continues to
drive sales, delivering more than $56 billion in net sales with
fuel, a 4.9 percent increase over last year. With membership
engagement scores at record levels, were continuing to focus
on driving value to our members.
Walmart 2013 Annual Report
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At Walmart, were excited about the progress in our business

and have confidence in the strategies were executing in each
operating segment. I feel very good about the areas where
we are strategically focused, and we are prepared to accelerate these efforts. Were delivering on the productivity loop
and being even more disciplined about operating expenses
and capital spending. Were investing to serve more customers
globally, especially in e-commerce. Were putting a major
effort into making sure we have the best retail talent at
Were also applying this same discipline to capital expenditures.

Weve reduced total remodeling costs for Walmart U.S.
50 percent over the past two years and are lowering construction costs around the world. Last year, we invested $12.9 billion
to add 34.6 million square feet of retail space. Were also better
matching our systems investments to the size of the retail box
and the need of the market. Whether its expense leverage or
capital discipline, Walmart is accelerating the productivity loop
to drive prices even lower for our customers.
Delivering a seamless shopping experience
By bringing together best-in-class online, mobile and social
capabilities and our over 10,700 stores, we are building what
no other retailer online or otherwise can. We can offer
customers a truly seamless experience that empowers them
to shop in the way most convenient for them anytime
and anywhere. Over the past year, weve made significant
investments in talent and technology to accelerate progress
toward this vision.
Exceptional customer service is a key contributor to

Walmart Canadas strong market position.
every level of our organization. And were taking our model

for making a difference and applying it in new ways to some
of societys toughest challenges.
One success is our new search engine for walmart.com,

which delivers more relevant results to online shoppers and
led to increased sales conversions. Were also testing some
great innovations, such as same-day delivery of purchases
from our U.S. website. We just expanded mobile self-checkout
through our Scan and Go app. Perhaps most important to
our growth plans, weve launched a multi-year process to
build the next generation global technology platform. By
More often, I see customers using a mobile phone to check

the price of an item. The era of price transparency is right here,
right now and in real time. We welcome Walmart being a
showroom for online shoppers. This may surprise some people,
but because were really churning the productivity loop, we
have a lot of open road ahead. If we offer the right assortment,
the lowest prices and the best experience, customers choose
Walmart whenever and wherever they shop.
Walmart has now leveraged operating expenses for a third
consecutive year. In fact, every operating segment grew sales
faster than expenses. We continue to invest savings into
lower prices and improving returns. Im pleased with the
progress weve made with innovations around workforce
planning, on-shelf availability and sourcing. These areas
and many others are key priorities for our management
teams. Were on track to meeting our goal to reduce operating
expenses as a percentage of sales by at least 100 basis points
by fiscal 2017.
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At Sams Club, exciting merchandise at great values drives

strong member engagement.
having the ability to connect every product in the world

with every customer in the world, well be able to accelerate
our expansion of e-commerce operations. Right now, we
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have growing online businesses in 10 countries and are well

positioned in markets that offer the greatest growth potential
the U.S., the U.K., Brazil and China. Im particularly encouraged
Every day our talented associates deliver the operational

efficiencies that make possible Walmarts EDLP.
by our increased investment in Yihaodian, which has

strengthened our ability to capitalize on the vast potential
in the Chinese e-commerce market.
Talent is key to success
To execute these and other strategies vital to our long-term
success, we must recruit, develop and retain the absolute
best talent at every level of our organization. That means
executives, managers and front-line associates that traditionally
make up the ranks of a major retailer. But we also need
entrepreneurs, technology specialists, data scientists and
consumer Internet professionals. Today, Walmart has more
than 2,500 associates with these skills in Silicon Valley, Brazil,
India and China. They are some of the most inspired and
inspiring associates anywhere in our company.
Nothing makes me prouder of Walmart than when I hear
about the opportunity we provide to our associates. Its
amazing to think that in our Walmart U.S. business, approximately 75 percent of our store operations management
started their careers as hourly associates. I especially love
hearing from our front-line associates and talking with them
about their ideas for how we can serve our customers even
better. Our senior leadership team is the best in retail and
perhaps in all of business.
The job of every Walmart associate must begin with integrity.
Over the past year, Ive had countless opportunities to speak
to our associates, and Ive been very clear that ethics and
compliance are non-negotiable. Our standard is full compliance

with all laws and regulations in the markets where we operate.
Weve made significant improvements to our compliance
programs and were taking appropriate action for any instance
of non-compliance. Were pleased with the progress weve
made through training, new processes and procedures
and recruiting exceptionally strong talent to fill new roles.
Walmart will have a world-class compliance organization.
Benefiting our communities
Wherever I travel around the world and have the chance to
talk with a business leader or an elected official, its gratifying
to hear their comments about what Walmart is doing on hiring
veterans, womens economic empowerment or environmental
sustainability. Year after year, weve just continued to build
momentum in how we use our size and scale in new ways to
make a difference on big issues. Last year alone, Walmart and
the Walmart Foundations charitable contributions surpassed
$1 billion in cash and in-kind donations to positively impact
local communities around the globe. Over the past year,
Walmart became the largest onsite solar power generator in
the United States, and the same is true for renewables. We
announced major new commitments to make our supply
chain more sustainable in China and around the world. Im
also very excited about our recent announcement to boost
U.S. manufacturing for Walmart U.S. and Sams Club, to hire
100,000 honorably discharged U.S. veterans and to do more
to help our part-time associates find full-time jobs and build
careers at Walmart.
Looking ahead
Walmart is only getting stronger as the worlds healthiest
and best-positioned global retailer. Im pleased with our
business and financial performance last year. But what gives
me the most confidence is the changing retail landscape, and
how our people and our strategies fit so well for the customers
we know and care about. Whether its everyday low prices, a
seamless shopping experience, the most talented team of
associates, or our model for making a difference, we are on
the right path. We will accelerate everything were doing.
And Walmarts best and most exciting days remain ahead.
Michael T. Duke
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Top: Grocery accounts for 55 percent of Walmart U.S. sales.

Walmart is the nations largest grocer.
Middle: Focusing on basics drove apparel sales to the best
comp sales performance in 7 years.
Bottom: More than 240 Neighborhood Markets offer
groceries and a pharmacy.
Right: Supercenters offer a broad assortment to deliver
one-stop shopping.
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Everyday low prices

on a broad assortment,
anytime, anywhere
In fiscal 2013, Walmart U.S. delivered a strong 1.8 percent comp increase, or
an additional $4.7 billion in comp store sales from last year. Net sales rose to
$274.5 billion, a 3.9 percent increase, and operating income grew by 5.4 percent to
$21.5 billion. We are driving growth and meeting our customers needs by offering
lower prices on a broad assortment of relevant merchandise.
Leveraging a winning formula. Everyday Low Price (EDLP) is the cornerstone of our
strategy, and our price focus has never been stronger. Todays consumer seeks the
convenience of one-stop shopping that we offer. From grocery and entertainment
to sporting goods and crafts, we provide the deep assortment that our customers
appreciate. Our price investments across a broad assortment allow us to deliver a
lower-priced market basket. Through Walmarts localized and national market basket
media campaigns, we show customers market by market that we are the low price
leader on baskets of merchandise.
Fortifying our low-cost culture. Through our Everyday Low Cost (EDLC) focus,
Walmart is constantly fueling the productivity loop by leveraging expenses so that
we can lower prices. We work closely with suppliers to obtain the best price for the
merchandise customers want. And, we committed to source an additional $50 billion
of U.S. products over the next 10 years. We also drive innovation across our supply
chain and store operations to reduce cost. Productivity initiatives, including One-Touch
and MyGuide, help our stores manage expenses, while continuing to provide good
customer service.
Engaged associates drive customer satisfaction. Sam Walton used to say, The
greatest measure of our success is how well we please the customer, our boss. Our
associates are dedicated to executing our core strategy of managing expenses so we
can invest in lower prices for our customers. Associate engagement scores are at an
all-time high. We continue to promote associates and during fiscal 2013, we provided
a record $1.5 billion incentive payout to field associates. This year, we began a new
commitment to hire 100,000 honorably discharged U.S. veterans over the next five
years, which will further strengthen our associate team.
Integrated offerings between e-commerce and stores. With more than 4,000
stores, unmatched logistical efficiency and innovative e-commerce solutions, we
offer millions of items to about 130 million weekly shoppers, with convenient and
flexible delivery options. To enhance our customers experience, we developed a
new walmart.com search engine and delivered mobile solutions to help customers
plan their shopping trips, manage their budgets and find merchandise more
efficiently. Walmart offers a seamless shopping experience, both in our stores
and online, to provide customers with merchandise anytime, anywhere.
Disciplined growth, diverse formats. We are continuing to grow both through
comp store sales and new stores, including supercenters and small formats. Our
enhanced focus on capital discipline allows us to reduce our cost per square foot
on new construction, as we drive productivity into design and construction
processes. We plan to add between 15 and 17 million square feet of retail space
this year, representing between 220 and 240 units.
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International
A global portfolio that

drives growth and returns
Walmart International serves more than 105 million customers per week
in 26 countries. Our portfolio provides a balance of growth with improved
profitability and higher returns. In fiscal 2013, International contributed
almost 30 percent of the companys net sales, with an increase of
7.4 percent from the prior year to $135.2 billion. Operating income grew
8.3 percent to $6.7 billion. We ended the year with 497 more new stores,
totaling approximately 19 million square feet.
Disciplined growth through new stores and e-commerce. Were
focused on disciplined investment in high potential markets, as we
strengthen our presence in mature markets. This past year, we moderated new
store growth in a few markets to ensure that we open highly productive
stores through more disciplined real estate development processes.
Were focused on driving comparable sales growth, opening new stores
and investing in e-commerce. Our majority stake in Chinas Yihaodian
allows us to quickly penetrate one of the worlds fastest-growing
e-commerce markets.
Extending our EDLP advantage. The diversity of our formats ensures
were relevant to our customers and were focused on delivering our EDLP
advantage across formats. Most of our markets use EDLP as a foundation,
and the remaining are in the process of deploying this strategy. Brazils
conversion to EDLP is progressing well, and China is in the early stages
of its transition. Massmart in sub-Saharan Africa is continuing to make
progress on implementing EDLP into their stores as well.
Local relevance, world-class capability. We stay close to our customers
in every market to understand their unique preferences. With these insights,
our merchants and operators leverage Walmarts global sourcing capabilities
to provide locally relevant merchandise at the lowest prices. Our country
and Home Office teams share best practices and drive EDLC through
improved productivity in store operations, purchasing practices,
information technology, logistics and back office support functions.
Deeper talent enables growth. Were investing in our outstanding group
of Walmart International associates. The secret to our continued success
lies in the strength and consistency of our culture that Walmart associates
embody every day. We recruit energetic and capable leaders. In addition,
we focus on developing merchant capabilities through merchant
academies in all markets.
Top: Locally relevant formats like Mexicos Bodega

Aurrera help ensure success across our global portfolio.
Middle: Walmart Canadas broad selection of
Canadian-sourced beef demonstrates our focus
on locally grown food.
Bottom: Attracting and developing top talent is central
to ASDAs strategy for continued growth in the U.K.
Right: Our EDLP strategy appeals to customers from
Canada to Brazil.
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Building world-class compliance. We have built our business on a

foundation of integrity. Were using that foundation to create an even
stronger, comprehensive compliance organization in every market to
give our associates the support they need to always do the right thing.
We hold ourselves accountable to the highest standards around the world.
Leading on social and environmental issues. Were a catalyst for change
on issues that make a difference in our communities, such as womens
economic empowerment, sustainable agriculture and environmental
sustainability. Through our work on energy efficiency and zero-waste
goals, we not only benefit the environment, but also drive cost savings.
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Delivering greater
value to members
Sams Club associates do a great job of delivering value to
members through exciting merchandise, price leadership and
a best-in-class shopping experience. This approach drove
solid growth in the warehouse club segment in fiscal 2013.
Net sales increased 4.9 percent over last year, to $56.4 billion,
while comp sales increased 3.9 percent. Operating income
was $2.0 billion, up 6.2 percent.
Merchandise that keeps members coming back for more.
Sams Club members want a merchandise assortment that
is exciting, relevant and in demand, and thats what we
provide. Our fresh products and appealing brands drive
traffic. Advantage members manage busy schedules, so
they count on Sams Club for their everyday apparel and
Top: Sales of top brand apparel remain strong.

Middle: Assortment, quality and value drive membership
renewals and upgrades.
Bottom: Business members rely on Click n Pull to
save time.
Right: Our extensive fresh food assortment drives
traffic by offering value to both Advantage and
Business members.
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home needs, as well as grocery staples. Our health and

wellness offerings, including diet and nutrition products
and pharmacy services, have seen strong growth. The
quality and value of our bulk sizes resonate with our
business members, who look to Sams Club to replenish
their convenience stores, restaurants, cleaning services and
other small businesses. This value proposition has never
been more critical, as challenging economic conditions
pressure their budgets.
Price leadership drives traffic and ticket. Our role at
Sams Club is to support our members by creating value
for them through price investments across the club. Were
driving operating efficiencies, such as refining workforce
scheduling to more closely align with member traffic
patterns. Productivity measures enable us to expand
strategic price investments on key traffic-driving items
further strengthening members long-term loyalty.
Innovations that enhance the shopping experience.

We invest in technology to help members shop smarter
at Sams Club. Were strengthening in-club efficiency by
expanding self-checkouts to all clubs by year-end and by
introducing convertible cash registers that make registers
available for members at all times. In addition, were
leveraging the wi-fi capabilities in our clubs to provide new
mobile options. Site visits to samsclub.com strengthen our
integration of e-commerce and the club, while enhancing
the experience overall.
Sharpening our focus to deliver even greater value.
In fiscal 2014, well continue to grow, with plans to open
8 to 12 new clubs, while relocating or expanding 7 to 8 more.
Were expanding the price investments that we started late
in fiscal 2013. And, were evaluating a new membership
benefit program that simplifies a members fee structure
and provides instant savings to drive membership all
in an effort to deliver even greater value to our members.
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Global eCommerce
Delivering seamless access to customers

anytime, anywhere
The worlds e-commerce market continues to expand rapidly, and
Walmart is investing to serve customers and to gain share of this
huge opportunity. Our e-commerce business unites and expands
the Walmart customer experience. We are building best-in-class
capabilities in online, mobile and social that, when combined with
our 10,700 stores and approximately 245 million weekly shoppers,
allow us to do what no one else can offer customers seamless
access to the products they want anytime, anywhere.
We have clear objectives to drive e-commerce growth excelling at
the fundamentals, innovating in more ways, winning in key markets
and uniting and expanding the Walmart shopping experience.
Excelling at the fundamentals. We aim to:
provide more personalized and relevant shopping options;
offer a broad product assortment;
provide the best possible shopping experience online, through
mobile and in our stores; and
deliver merchandise at the lowest possible cost to customers
when and where they want it.
Were driving increased sales by building world class e-commerce
technologies, such as the upgraded search engine for walmart.com
which is enabled by the new global technology platform that

we are now beginning to deploy.
Innovating in more ways. Were leading in Big Data, social and
mobile. We use Big Data to optimize our fulfillment networks,
to create powerful pricing tools and to build the right product
assortment. Signals from social media help us gain insights on
customer trends. Mobile transforms the retail experience by
bringing together online and stores putting power directly in
the customers hands. New mobile apps assist customers with
navigating our stores, making it even easier to find specific products.
We continue to expand the test of our mobile self-checkout app
called Scan and Go.
Winning in key markets. We have e-commerce sites in 10
countries and are investing aggressively in markets that represent
the greatest growth opportunities U.S., U.K., Brazil and China.
Uniting and expanding the Walmart shopping experience.
By leveraging our stores and clubs, our logistics network and our
supplier relationships, Global eCommerce enhances the in-store
experience and provides e-commerce options that take
Walmart to more consumers around the world.
Top: Our mobile apps make shopping fun for

customers and more convenient than ever.
Bottom: ASDA offers convenient apps for
shopping and delivery of groceries and
general merchandise.
Right: Free shipping is available on thousands
of items through Site to Store.
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Global
Responsibility
Helping our customers and

communities live better
As the worlds largest retailer, we have the ability and the responsibility to
make a difference on issues our customers, communities and associates
care about to help people live better. We focus our leadership on
three key areas: social responsibility, environmental responsibility and
associate opportunity.
Social responsibility. Through charitable contributions, skills training
and global sourcing initiatives, were improving the lives of so many
others. Walmart and the Walmart Foundations charitable contributions
surpassed $1 billion in cash and in-kind donations last year to address
needs of local communities globally. We continue to strengthen our
womens economic empowerment initiatives through a variety of
programs. Last year, for example, more than 73,000 low-income women
around the world received job skills training, access to markets and
career opportunities. With our healthier foods initiative, were helping
customers easily identify healthier food options. And for manufacturers,
were enhancing auditing, training and education, and stakeholder collaboration to reinforce our commitment to safe working environments in our
global supply chain.
Environmental responsibility. Were focused on responsible energy
consumption globally and now obtain approximately 21 percent of our
electricity from renewable sources. Walmart has the most onsite solar
capacity of any business in the U.S., according to the EPA. Our goal remains
zero waste and, to reach it, were rethinking processes, using smarter
packaging, recycling and reducing plastic bag use. In addition, were
applying and scaling the Sustainability Index a tool to measure and
drive the sustainability qualities of products. As part of this global effort,
Walmart committed to buying 70 percent of the goods sold in U.S. stores
and clubs only from suppliers who use the Index by the end of 2017.
Associate opportunity. Our founder, Sam Walton, fostered a unique
corporate culture, dedicated to a belief in limitless opportunity for
Walmart associates. Our global workforce reflects the rich diversity of
the communities we serve. In addition, Walmart U.S. has committed to
hire a projected 100,000 honorably discharged U.S. veterans over the
next five years and to increase opportunities for part-time associates
to advance to full-time careers. Our leadership development programs
resulted in meaningful increases in women and minority promotions
from hourly to management assignments.
Top: Walmart empowers consumers to select healthier food
options, as we lower prices on fresh fruit and vegetables.
Middle: Solar power plays a leading role in Walmarts
efforts to increase the use of renewable energy resources.
Bottom: Associates have the opportunity to build long-term
careers with Walmart.
To learn more about Walmarts responsibility initiatives to help people

live better, access our 2013 Global Responsibility Report (GRR) at
corporate.walmart.com. The Global Reporting Initiative (GRI) collaborates
with many stakeholders for its framework on sustainability reporting.
This approach is now incorporated into Walmarts 2013 GRR.
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Strong corporate governance

guides our decisions
Walmart has one of the highest quality public company board of
directors. We are guided by strong governance principles and are
rooted in our service to shareholders, as well as in making decisions
that strengthen our ability to serve customers.
One of our most important priorities is
compliance and Walmart is implementing
a stronger global compliance organization.
Our entire board supports strengthening
procedures, recruiting talent and expertise,
and investing further in compliance training
for associates. In addition, weve aligned our
global compliance, ethics, investigations,
and legal functions under one organization
and, beginning this fiscal year, the compensation of our senior executives will be tied
to achieving compliance goals. As we
previously disclosed, our board has taken
responsibility to investigate the allegations regarding the Foreign
Corrupt Practices Act. The Audit Committee, which is composed
only of independent directors, has direct oversight of the
investigation and meets frequently to review the progress made
by third-party legal and accounting experts, who have dedicated
countless hours to the investigative and compliance efforts. We
are dedicating all necessary resources to ensure clear standards
and market-specific processes are in place.
Every year, Im impressed with the time and preparation each
board member brings to representing Walmarts shareholders.
Even with the additional board and committee meetings this
past year, attendance at these meetings was 97 percent.
Strong governance framework
Walmarts board encourages and embraces diversity of thought
from our members. Our directors are recognized leaders in their
fields, each with experience and expertise covering many global
industries retail, technology, finance, brand management, and
strategy. This diversity of perspective is critical to providing guidance
to management.
During the past year, Marissa Mayer and Tim Flynn joined the board
and brought deep experience in important areas like technology
and financial reporting. This year, we recognize three directors
Jim Breyer, Michele Burns and Arne Sorenson who will rotate off
the board in accordance with our governance guidelines. Jim and
Michele served Walmart shareholders for more than a decade and
Arne, who was recently promoted to CEO of Marriott International,
Inc., is leaving us after five years of service on our board to focus
on his increased responsibilities. Theyve been exceptional
contributors and we thank them for their dedicated service.
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We are proud of our familys position as shareholders and pleased

that we have representation on the board. At the same time, we
are committed to an independent board. Twelve of our current
members are independent, and we have an independent presiding
director. For more than 25 years, we have had separate Chairman
and CEO roles.
As board members, we constantly challenge one another to ensure
that we are focusing on the issues that are important to our
shareholders. Two years ago, we created a new board committee
focused on technology and e-commerce, and we formalized board
committee oversight for sustainability and corporate responsibility.
This year, we added board committee oversight for legislative affairs
and public policy engagement strategies, as well as adopted
restrictions on hedging and pledging of Walmart stock.
Progress made is the foundation for a bright future
As I reflect on fiscal 2013, there are many areas where Dad would be
proud. He would applaud the outstanding service of our 2.2 million
associates. He would love the progress we made in reducing
operating expenses as a percentage of sales, as we continue
delivering on our mission to help customers save money so they
can live better. Although the Internet as we know it wasnt around
in Dads day, hed be excited about how were innovating in
the changing retail landscape. Weve made more progress in
e-commerce and its integration with our stores this year than
in the last decade.
There is no doubt Walmart has a secure and bright future, and our
board plays a vital role in reviewing and approving the business
strategies. Integrity, transparency, openness and independence
guide our decisions. Just as our associates are focused on the
fundamentals of taking care of customers, the board is very
engaged for our shareholders.
Thank you for your support of our company. I encourage you to
review the details about our board members, governance structure,
executive compensation and other policies in the proxy statement
that accompanies this report. We look forward to your participation
in our Annual Shareholders Meeting June 7.
S. Robson Walton
Chairman of the Board of Directors
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2013 Board of Directors

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1| S. Robson Walton
Mr. Walton is the Chairman of the Board of
Directors of Wal-Mart Stores, Inc.
2| Aida M. Alvarez
Ms. Alvarez is the former Administrator of the U.S.
Small Business Administration and was a member
of President Clintons Cabinet from 1997 to 2001.
3| James W. Breyer (Presiding director)
Mr. Breyer is a Partner of Accel Partners, a venture
capital firm. Mr. Breyer is also the founder and has
been the Chief Executive Officer of Breyer Capital,
an investment firm.
4| M. Michele Burns
Ms. Burns is the Chief Executive Officer of the
Retirement Policy Center, sponsored by the
Marsh & McLennan Companies, Inc., a global
professional services and consulting firm.
5| James I. Cash, Jr., Ph.D.
Dr. Cash is the James E. Robison Emeritus
Professor of Business Administration at Harvard
Business School, where he served from July 1976
to October 2003.
6| Roger C. Corbett
Mr. Corbett is the retired Chief Executive Officer
and Group Managing Director of Woolworths
Limited, the largest retail company in Australia.
Board Committees:
Name
Audit
Comp.,
Nominating &
Governance
Executive
7| Douglas N. Daft
Mr. Daft is the retired Chairman of the Board of
Directors and Chief Executive Officer of The
Coca-Cola Company, a beverage manufacturer,
where he served in that capacity from February
2000 until May 2004, and in various other capacities since 1969.
14| Arne M. Sorenson

Mr. Sorenson is the President and Chief Executive
Officer of Marriott International, Inc.
8| Michael T. Duke
Mr. Duke is the President and Chief Executive
Officer of Wal-Mart Stores, Inc. and is the
Chairman of the Executive Committee of the
Board of Directors.
9| Timothy P. Flynn
Mr. Flynn is the retired Chairman of KPMG
International, a professional services firm.
15| Jim C. Walton

Mr. Walton is the Chairman of the Board of
Directors and Chief Executive Officer of Arvest
Bank Group, Inc., a group of banks operating in
the states of Arkansas, Kansas, Missouri and
Oklahoma.
10| Marissa A. Mayer

Ms. Mayer is the Chief Executive Officer and
President and Director of Yahoo! Inc., a digital
media company.
16| Christopher J. Williams

Mr. Williams is the Chairman of the Board of Directors
and Chief Executive Officer of The Williams Capital
Group, L.P., an investment bank.
11| Gregory B. Penner

Mr. Penner is a General Partner at Madrone Capital
Partners, an investment management firm.
17| Linda S. Wolf

Ms. Wolf is the retired Chairman of the Board of
Directors and Chief Executive Officer of Leo
Burnett Worldwide, Inc., an advertising agency
and division of Publicis Groupe S.A.
12| Steven S Reinemund

Mr. Reinemund is the Dean of Business and
Professor of Leadership and Strategy at Wake
Forest University. He previously served as the
Chairman of the Board and Chairman and Chief
Executive Officer of PepsiCo, Inc.
Global
Comp.
Strategic
Planning
Tech &
& Finance e-commerce
Name
S. Robson Walton
Marissa A. Mayer
Aida M. Alvarez
Gregory B. Penner
James W. Breyer
Audit
Comp.,
Nominating &
Governance
Executive
Global
Comp.
Strategic
Planning
Tech &
& Finance e-commerce
(C)
Steven S Reinemund
M. Michele Burns
(C)
H. Lee Scott, Jr.
James I. Cash, Jr., Ph.D.(FE)
Arne M. Sorenson(FE)
Roger C. Corbett
Jim C. Walton
Douglas N. Daft
Christopher J. Williams(FE)
Michael T. Duke
Timothy P. Flynn
13| H. Lee Scott, Jr.

Mr. Scott is the former Chairman of the Executive
Committee of the Board of Directors of Wal-Mart
Stores, Inc. He is the former President and Chief
Executive Officer of Wal-Mart Stores, Inc., serving in
that position from January 2000 to January 2009.
(C)
(FE)
(C)
(C)
Linda S. Wolf
(C)
Committee Chair
(C)
(FE)
Financial Expert
137073_L01_NARR.indd 13
|| 13
4/5/13 11:52 PM
Our financial mission: providing

strong returns to shareholders
Growth
Leverage
Net sales
(dollars in billions)
$401
$405
$419
Returns
Operating expense
(as a percentage of sales)
$444
$466
Total shareholder returns

(dollars in billions)
$19.2
19.7%
19.4%
19.4%
19.2%
$11.5
19.1%
$11.3
$13.0
$7.3
FY09
FY10
FY11
FY12
FY13
FY09
FY10
FY11
FY12
FY13
FY09
FY10
Dividends
FY11
FY12
FY13
Share repurchases
Walmart U.S.*
Walmart
International*
Sams Club*
Net sales surpassed
Net sales surpassed
Net sales surpassed
3.9%
7.4%
4.9%
$274B
$135B
$56B
Increase from fiscal 2012
Operating income grew to
$21.5B
$6.7B
$2.0B
*Dollars represent fiscal 2013 financial results.
14
||
137073_L01_NARR.indd 14
4/5/13 11:53 PM
Walmarts 2013 Financial Report

In fiscal 2013, Walmart continued its long history of delivering strong results for our customers and shareholders. In
fact, over the last decade, Walmart grew sales by approximately 7 percent on a compounded annual rate, earnings
per share by approximately 11 percent on a compounded annual rate, and returned close to $100 billion to
shareholders in the form of dividends and share repurchases. We are proud of our record of consistent and
strong performance, even during times when the global economy was volatile. Walmart continues to create
value because our strategies are guided by our financial
priorities growth, leverage and returns.
Were excited about Walmarts future growth opportunities from a combination of comp store sales, new stores
and e-commerce. Were gaining market share across almost every country in which we operate. And in food and
grocery our largest part of the overall business we
continue to gain share as well. Our fiscal 2014 capital expenditure plan is to spend between $12 billion and $13
billion. This capital plan includes continued growth in
new stores, logistics and supply chain expansion, investments to drive productivity and reduce expenses, and
Global eCommerce expansion. Our three operating segments are projected to add between 36 million and 40
million retail square feet this year. Two fundamental operating principles Everyday Low Cost (EDLC) and Everyday Low Price (EDLP) underpin our ability to grow
profitably. Offering everyday low prices on a broad merchandise assortment builds customer trust and resonates with consumers globally.
Our three operating segments are

projected to add between 36 million
and 40 million retail square feet this
year. Two fundamental operating
principles Everyday Low Cost (EDLC)
and Everyday Low Price (EDLP)
underpin our ability to grow profitably.
Walmarts commitment to leverage expenses (to reduce operating expenses as a percentage of sales) is the
foundation of driving the productivity loop. With the savings from lowering costs, we are able to invest in price,
drive greater traffic to our stores and our e-commerce
sites, grow sales and deliver strong financial results. In
fact, achieving greater productivity through EDLC is central to the Walmart business model that Sam Walton put
in place in 1962, when he opened the first store in Rogers, Arkansas. Were pleased that in fiscal 2013, Walmart
successfully leveraged operating expenses for a third consecutive year. Weve also made a conscientious effort to
improve capital expenditure efficiency by being disciplined in new store and club openings and lowering the
cost of remodels. These productivity gains are made possible by the innovative ideas and the hard work of our 2.2
million associates worldwide. Their collective efforts in
tightly managing costs result in lower prices for our customers, strong profitability and greater value for our
shareholders.
Delivering strong returns to shareholders remains a top
priority for Walmart. Our AA credit rating is a testament
to Walmarts strong cash flows, disciplined financial
management and the strength of our underlying business. This strength allows us to invest in growth and provide strong returns by way of dividends and share repurchases. Walmarts annual dividend per share has
increased about 18 percent on average over the last decade, and weve returned over $60 billion in share repurchases and dividends over the last five years alone.
In the next section, you can review our financial results
and see more clearly how we are delivering shareholder
value through our focus on growth, leverage and returns.
All of us at Walmart are proud of what we have accomplished and are excited about our future opportunities.
Were confident that our strong financial position, along
with our EDLC and EDLP operating model, will continue
to produce solid results for our shareholders.
Sincerely,
Charles M. Holley, Jr.

Executive Vice President and Chief Financial Officer
137073_L01_NARR.indd 15
|| 15
4/9/13 2:07 PM
Executive Officers
Neil M. Ashe
Executive Vice President,
President and Chief Executive Officer,
Global eCommerce
Rosalind G. Brewer
Sams Club
M. Susan Chambers
Global People
Leslie A. Dach
Corporate Affairs
Michael T. Duke
Rollin L. Ford
Executive Vice President and
Chief Administrative Officer
Jeffrey J. Gearhart
Corporate Secretary
Chief Financial Officer
C. Douglas McMillon
Walmart International
William S. Simon
Walmart U.S.
17 Five-Year Financial Summary

18 Managements Discussion and Analysis of

Financial Condition and Results of Operations
32 Consolidated Statements of Income

Consolidated Statements of Comprehensive Income
33 Consolidated Balance Sheets
34 Consolidated Statements of Shareholders Equity
35 Consolidated Statements of Cash Flows
36 Notes to Consolidated Financial Statements
56 Report of Independent Registered Public

Accounting Firm
57 Report of Independent Registered Public

Accounting Firm on Internal Control Over

Financial Reporting
58 Managements Report to Our Shareholders
59 Fiscal 2013 Unit Count
60 Corporate and Stock Information
S. Robson Walton
Chairman of the Board of Directors
Steven P. Whaley
Senior Vice President and Controller
16
||
137073_L01_NARR.indd 16
4/8/13 7:57 PM
Five-Year Financial Summary
As of and for the Fiscal Years Ended January 31,

(Amounts in millions, except per share and unit count data)
Operating results
Total revenues
Percentage change in total revenues from previous fiscal year
Net sales
Percentage change in net sales from previous fiscal year
Increase (decrease) in calendar comparable sales (1)
in the United States
Walmart U.S.
Sams Club
Gross profit margin
Operating, selling, general and administrative expenses,
as a percentage of net sales
Operating income
Income from continuing operations attributable to Walmart
Net income per common share:
Diluted income per common share from
continuing operations attributable to Walmart
Dividends declared per common share
Financial position
Inventories
Property, equipment and capital lease assets, net
Total assets
Long-term debt, including obligations under capital leases
Total Walmart shareholders equity
Unit counts
Walmart U.S. segment
Walmart International segment
Sams Club segment
Total units
2013
2012
2011
2010
2009
$469,162
5.0%
466,114
5.0%
$446,950
6.0%
443,854
5.9%
$421,849
3.4%
418,952
3.4%
$408,085
0.9%
405,132
1.0%
$404,254
7.2%
401,087
7.3%
2.4%
2.0%
4.1%
24.4%
1.6%
0.3%
8.4%
24.5%
(0.6)%
(1.5)%
3.9%
24.8%
(0.8)%
(0.7)%
(1.4)%
24.9%
3.5%
3.2%
4.9%
24.3%
19.1%
$ 27,801
16,999
19.2%
$ 26,558
15,766
19.4%
$ 25,542
15,355
19.7%
$ 24,002
14,449
19.4%
$ 22,767
13,235
5.02
1.59
4.54
1.46
4.18
1.21
3.73
1.09
3.35
0.95
$ 43,803
116,681
203,105
41,417
76,343
$ 40,714
112,324
193,406
47,079
71,315
$ 36,437
107,878
180,782
43,842
68,542
$ 32,713
102,307
170,407
36,401
70,468
$ 34,013
95,653
163,096
34,549
64,969
4,005
6,148
620
3,868
5,651
611
3,804
4,557
609
3,755
4,099
605
3,703
3,595
611
10,773
10,130
8,970
8,459
7,909
(1) Comparable store and club sales include fuel. Comparable sales include sales from stores and clubs open for the previous 12 months, including remodels, relocations and
expansions, as well as online sales.
|| 17
Managements Discussion and Analysis of Financial

Condition and Results of Operations
Overview
Wal-Mart Stores, Inc. (Walmart, the Company or we) operates retail
stores in various formats under 69 banners around the world and is
committed to saving people money so they can live better. We earn the
trust of our customers every day by providing a broad assortment of
quality merchandise and services at everyday low prices (EDLP), while
fostering a culture that rewards and embraces mutual respect, integrity
and diversity. EDLP is our pricing philosophy under which we price
items at a low price every day so that our customers trust that our prices
will not change under frequent promotional activities. Our focus for
Sams Club is to provide exceptional value on brand name and private
label merchandise at members only prices for both business and
personal use. Internationally, we operate with similar philosophies.
Our fiscal year ends on January 31 for our United States (U.S.) and
Canadian operations. We consolidate all other operations generally using
a one-month lag and on a calendar basis. We discuss how the results of
our various operations are consolidated for financial reporting purposes
in Note 1 in the Notes to Consolidated Financial Statements.
We intend for this discussion to provide the reader with information
that will assist in understanding our financial statements, the changes in
certain key items in those financial statements from year to year, and the
primary factors that accounted for those changes, as well as how certain
accounting principles affect our financial statements. We also discuss
certain performance metrics that management uses to assess our performance. Additionally, the discussion provides information about the
financial results of the various segments of our business to provide a
better understanding of how those segments and their results affect the
financial condition and results of operations of the Company as a whole.
This discussion, which presents our results for the fiscal years ended
January 31, 2013 (fiscal 2013), January 31, 2012 (fiscal 2012) and
January 31, 2011 (fiscal 2011), should be read in conjunction with our
Consolidated Financial Statements and accompanying notes.
Our operations consist of three reportable business segments:
Walmart U.S., Walmart International and Sams Club. The Walmart U.S.
segment includes the Companys mass merchant concept in the U.S.,
operating under the Walmart or Wal-Mart brand, as well as
walmart.com. The Walmart International segment consists of the
Companys operations outside of the U.S., including various retail
websites. The Sams Club segment includes the warehouse membership
clubs in the U.S., as well as samsclub.com.
Our business is seasonal to a certain extent due to different calendar
events and national and religious holidays, as well as different climates.
Historically, our highest sales volume and operating income occur in
the fiscal quarter ending January 31.
Throughout this Managements Discussion and Analysis of Financial
Condition and Results of Operations, we discuss segment operating
income, comparable store and club sales and other measures.
Management measures the results of its segments using, among other
measures, each segments operating income, including certain corporate
18
||
overhead allocations. From time to time, we revise the measurement

of each segments operating income or other measures, including any
corporate overhead allocations and other items impacting the measures
used to evaluate our segments results, as dictated by the information
regularly reviewed by our chief operating decision maker. When we do
so, the previous period amounts and balances are reclassified to conform
to the current periods presentation. The amounts disclosed for Other
unallocated in the leverage discussion of the Companys performance
metrics consist of corporate overhead and other items not allocated to
any of the Companys segments.
Comparable store and club sales is a metric which indicates the
performance of our existing U.S. stores and clubs by measuring the
change in sales for such stores and clubs for a particular period from the
corresponding period in the previous year. Walmarts definition of
comparable store and club sales includes sales from stores and clubs
open for the previous 12 months, including remodels, relocations and
expansions, as well as sales initiated online. Changes in format are
excluded from comparable store and club sales when the conversion is
accompanied by a relocation or expansion that results in a change in
retail square feet of more than five percent. Comparable store and club
sales are also referred to as same-store sales by others within the retail
industry. The method of calculating comparable store and club sales
varies across the retail industry. As a result, our calculation of comparable
store and club sales is not necessarily comparable to similarly titled
measures reported by other companies.
In discussing our operating results, the term currency exchange rates
refers to the currency exchange rates we use to convert the operating
results for all countries where the functional currency is not the U.S.
dollar. We calculate the effect of changes in currency exchange rates as
the difference between current period activity translated using the
current periods currency exchange rates, and the comparable prior year
periods currency exchange rates. Throughout our discussion, we refer
to the results of this calculation as the impact of currency exchange rate
fluctuations. When we refer to constant currency operating results, this
means operating results without the impact of the currency exchange
rate fluctuations and without the impact of acquisitions until the
acquisitions are included in both comparable periods. The disclosure of
constant currency amounts or results permits investors to understand
better Walmarts underlying performance without the effects of currency
exchange rate fluctuations or acquisitions. Volatility in currency exchange
rates may impact the results, including net sales and operating income,
of the Company and the Walmart International segment in the future.
We made certain reclassifications to prior period amounts and
balances to conform to the presentation in the current fiscal year. These
reclassifications did not impact the Companys consolidated operating
income or net income. Additionally, certain prior period segment asset
and expense allocations have been reclassified among segments to be
comparable with the current period presentation.

The Retail Industry
We operate in the highly competitive retail industry in all of the
countries we serve. We face strong sales competition from other discount,
department, drug, dollar, variety and specialty stores, warehouse clubs
and supermarkets. Many of these competitors are national, regional
or international chains, as well as internet-based retailers and catalog
businesses. We compete with a number of companies for prime retail
site locations, as well as in attracting and retaining quality employees
(whom we call associates). We, along with other retail companies, are
influenced by a number of factors including, but not limited to: general
economic conditions, cost of goods, consumer disposable income,
consumer debt levels and buying patterns, consumer credit availability,
interest rates, tax rates, customer preferences, unemployment, labor
costs, inflation, deflation, currency exchange rate fluctuations, fuel and
energy prices, weather patterns, climate change, catastrophic events,
competitive pressures and insurance costs. Further information on certain risks to our Company can be located in Item 1A. Risk Factors in our
Annual Report on Form 10-K for the fiscal year ended January 31, 2013,
and in the discussion under Forward-Looking Statements.
Company Performance Metrics

The Companys performance metrics emphasize three priorities for
improving shareholder value: growth, leverage and returns. The Companys
priority of growth focuses on sales through comparable store or club
sales and unit square feet growth; the priority of leverage encompasses
the Companys objective to increase its operating income at a faster rate
than the growth in net sales by growing its operating, selling, general
and administrative expenses (operating expenses) at a slower rate than
the growth of its net sales; and the priority of returns focuses on how
efficiently the Company employs its assets through return on investment
and how effectively the Company manages working capital and capital
expenditures through free cash flow.
Growth
Net Sales
Fiscal Years Ended January 31,
(Amounts in millions)
2013
2012
2011
Net Sales
Percent
of Total
Percent
Change
Net Sales
Percent
of Total
Percent
Change
Net Sales
Percent
of Total
Walmart U.S.
Sams Club
$274,490
135,201
56,423
58.9%
29.0%
12.1%
3.9%
7.4%
4.9%
$264,186
125,873
53,795
59.5%
28.4%
12.1%
1.5%
15.2%
8.8%
$260,261
109,232
49,459
62.1%
26.1%
11.8%
Net sales
$466,114
100.0%
5.0%
$443,854
100.0%
5.9%
$418,952
100.0%
Our consolidated net sales increased 5.0% and 5.9% in fiscal 2013 and
2012, respectively, when compared to the previous fiscal year. The increase
in net sales for fiscal 2013 was due to 3.3% growth in retail square feet
and positive comparable store and club sales. Additionally, net sales from
acquisitions, through their respective anniversary dates, accounted for
$4.0 billion of the increase in net sales. The increase in net sales was
partially offset by $4.5 billion of negative impact from fluctuations in
currency exchange rates. The increase in net sales for fiscal 2012 was
due to positive comparable store and club sales and 5.3% growth in retail
square feet, which includes square feet added through acquisitions.
Net sales from acquisitions in fiscal 2012 accounted for $4.7 billion of the
increase in net sales, and fluctuations in currency exchange rates
positively impacted net sales by $4.0 billion.
Calendar Comparable Store and Club Sales

Comparable store and club sales is a metric that indicates the performance of our existing U.S. stores and clubs by measuring the change in sales for
such stores and clubs for a particular period over the corresponding period in the previous year. The retail industry generally reports comparable store
and club sales using the retail calendar (also known as the 4-5-4 calendar) and, to be consistent with the retail industry, we provide comparable store
and club sales using the retail calendar in our quarterly earnings releases. However, when we discuss our comparable store and club sales below, we
are referring to our calendar comparable store and club sales calculated using our fiscal calendar. As our fiscal calendar differs from the retail calendar,
our calendar comparable store and club sales also differ from the retail calendar comparable store and club sales provided in our quarterly earnings
releases. Calendar comparable store and club sales, as well as the impact of fuel, for fiscal 2013 and 2012, were as follows:
With Fuel
Fuel Impact
2013
2012
2013
2012
Walmart U.S.
Sams Club
2.0%
4.1%
0.3%
8.4%
0.0%
0.3%
0.0%
3.4%
Total U.S.
2.4%
1.6%
0.1%
0.6%
|| 19

Comparable store and club sales in the U.S., including fuel, increased 2.4% and 1.6% in fiscal 2013 and 2012, respectively, when compared to the
previous fiscal year. U.S. comparable store and club sales increased during fiscal 2013 as a result of improved average ticket and an increase in
customer traffic. U.S. comparable store sales increased during fiscal 2012 primarily due to an increase in average ticket, partially offset by a decline in
traffic, while comparable club sales were higher due to a larger member base driving increased traffic, as well as a broader assortment of items.
As we continue to add new stores and clubs in the U.S., we do so with an understanding that additional stores and clubs may take sales away from
existing units. We estimate the negative impact on comparable store and club sales as a result of opening new stores and clubs was approximately
0.7% in fiscal 2013 and 0.8% in fiscal 2012.
Leverage
Operating Income
2013
Operating
Income
Percent
of Total
2012
Percent
Change
Operating
Income
Operating
Income
Percent
of Total
$21,500
6,694
1,963
(2,356)
77.3%
24.1%
7.1%
(8.5)%
5.4%
8.3%
6.2%
26.5%
$20,391
6,182
1,848
(1,863)
76.7%
23.3%
7.0%
(7.0)%
2.3%
10.9%
9.0%
11.6%
$19,941
5,575
1,695
(1,669)
78.1%
21.8%
6.6%
(6.5)%
Total operating income
$27,801
100.0%
4.7%
$26,558
100.0%
4.0%
$25,542
100.0%
Operating Expenses
We leveraged operating expenses in fiscal 2013 and 2012 due to our
continued focus on expense management. We are working to reduce
operating expenses as a percentage of sales by at least 100 basis points
over a five-year period beginning with fiscal 2013 and achieved a
14 basis point reduction in fiscal 2013.
In fiscal 2013, our operating expenses and sales increased 4.2% and 5.0%,
respectively, when compared to fiscal 2012. In fiscal 2012, our operating
expenses and sales increased 4.8% and 5.9%, respectively, when
compared to fiscal 2011. Operating expenses increased in fiscal 2013
primarily due to overall Company growth, as net sales increased 5.0%.
Also contributing to the increase in operating expenses in fiscal 2013
were increased associate incentive payments, continued investment in
our Global eCommerce initiatives and incurred expenses related to thirdparty advisors reviewing matters involving the Foreign Corrupt Practices
Act (FCPA). Acquisitions also increased operating expenses for fiscal
2013. In fiscal 2012, our Global eCommerce initiatives contributed to the
majority of the increase in operating expenses, as we continued to invest
in our e-commerce platforms. Depreciation expense also increased due
to our financial system investments, with the remainder of the increase
being driven by multiple items, none of which were individually significant.
||
2011
Percent
Change
Walmart U.S.
Sams Club
Other unallocated
We believe comparing the growth of our operating expenses to the

growth of our net sales and comparing the growth of our operating
income to the growth of our net sales are meaningful measures as they
indicate how effectively we manage costs and leverage operating
expenses. Our objective is to grow net sales at a faster rate than operating
expenses and to grow operating income at a faster rate than net sales.
On occasion, we may make strategic growth investments that may, at
times, cause our operating expenses to grow at a faster rate than net
sales and that may result in our operating income growing at a slower
rate than net sales.
20
Percent
of Total
Operating Income
Operating income increased 4.7% and 4.0% in fiscal 2013 and 2012,
respectively, when compared to the previous fiscal year. Although we
leveraged operating expenses in fiscal 2013 and 2012, operating income
for both years grew at a slower rate than sales. In fiscal 2013, the primary
causes for operating income growing slower than sales were the
investments in our Global eCommerce initiatives and incurred expenses
related to third-party advisors reviewing matters involving the FCPA.
Additionally, our investment in price for products sold in our retail
operations, which reduces gross margin, contributed to operating
income growing slower than sales in fiscal 2013 and was the primary
cause for operating income growing slower than sales in fiscal 2012.
Returns
Return on Investment
Management believes return on investment (ROI) is a meaningful
metric to share with investors because it helps investors assess how
effectively Walmart is deploying its assets. Trends in ROI can fluctuate
over time as management balances long-term potential strategic
initiatives with possible short-term impacts. ROI was 18.2% and 18.6%
for fiscal 2013 and 2012, respectively. The decline in ROI was primarily due
to the impact of acquisitions and currency exchange rate fluctuations.
We define ROI as adjusted operating income (operating income plus
interest income, depreciation and amortization, and rent expense) for
the fiscal year divided by average invested capital during that period.
We consider average invested capital to be the average of our beginning
and ending total assets of continuing operations, plus average
accumulated depreciation and average amortization less average
accounts payable and average accrued liabilities for that period, plus a
rent factor equal to the rent for the fiscal year or trailing twelve months
multiplied by a factor of eight.

ROI is considered a non-GAAP financial measure. We consider return on
assets (ROA) to be the financial measure computed in accordance with
generally accepted accounting principles (GAAP) that is the most
directly comparable financial measure to ROI as we calculate that financial
measure. ROI differs from ROA (which is income from continuing
operations for the fiscal year divided by average total assets of continuing
operations for the period) because ROI: adjusts operating income to
exclude certain expense items and adds interest income; adjusts total
assets from continuing operations for the impact of accumulated
depreciation and amortization, accounts payable and accrued liabilities;

and incorporates a factor of rent to arrive at total invested capital.
Although ROI is a standard financial metric, numerous methods exist for
calculating a companys ROI. As a result, the method used by management to calculate our ROI may differ from the methods other companies
use to calculate their ROI. We urge you to understand the methods used
by other companies to calculate their ROI before comparing our ROI to
that of such other companies.
The calculation of ROI, along with a reconciliation to the calculation of ROA, the most comparable GAAP financial measure, is as follows:
2013
2012
CALCULATION OF RETURN ON INVESTMENT

Numerator
Operating income
+ Interest income
+ Depreciation and amortization
+ Rent
$ 27,801
187
8,501
2,602
$ 26,558
162
8,130
2,394
= Adjusted operating income
$ 39,091
$ 37,244
Denominator
Average total assets of continuing operations (1)
+ Average accumulated depreciation and amortization (1)
- Average accounts payable (1)
- Average accrued liabilities (1)
+ Rent x 8
$198,193
51,829
37,344
18,478
20,816
$186,984
47,613
35,142
18,428
19,152
= Average invested capital
$215,016
$200,179
Return on investment (ROI)
18.2%
18.6%
CALCULATION OF RETURN ON ASSETS

Numerator
Income from continuing operations
$ 17,756
$ 16,454
Denominator
Average total assets of continuing operations (1)
$198,193
$186,984
Return on assets (ROA)
9.0%
8.8%
As of January 31,
Certain Balance Sheet data

Total assets of continuing operations (2)
Accumulated depreciation and amortization
Accounts payable
Accrued liabilities (3)
2013
2012
2011
$203,068
55,043
38,080
18,802
$193,317
48,614
36,608
18,154
$180,651
46,611
33,676
18,701
(1) The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2.
(2) Total assets of continuing operations as of January 31, 2013, 2012 and 2011 exclude assets of discontinued operations of $37 million, $89 million and $131 million, respectively,
which are recorded in prepaid expenses and other in the Companys Consolidated Balance Sheets.
(3) Accrued liabilities as of January 31, 2013, 2012 and 2011 exclude liabilities of discontinued operations of $6 million, $26 million and $47 million, respectively, which are included
in accrued liabilities in the Companys Consolidated Balance Sheets.
|| 21

Free Cash Flow
We define free cash flow as net cash provided by operating activities
in a period minus payments for property and equipment made in that
period. We generated free cash flow of $12.7 billion, $10.7 billion and
$10.9 billion for fiscal 2013, 2012 and 2011, respectively. The $2.0 billion
increase in free cash flow for fiscal 2013 compared to fiscal 2012 was
primarily due to higher income from continuing operations positively
impacting net cash generated from operating activities and lower
capital expenditures. The modest decline in free cash flow in fiscal 2012
compared to fiscal 2011 was primarily due to capital expenditures
outpacing the growth in net cash generated from operating activities.
Free cash flow is considered a non-GAAP financial measure.
Management believes, however, that free cash flow, which measures
our ability to generate additional cash from our business operations, is
an important financial measure for use in evaluating the Companys
financial performance. Free cash flow should be considered in addition
to, rather than as a substitute for, income from continuing operations
as a measure of our performance and net cash provided by operating
activities as a measure of our liquidity.
Additionally, our definition of free cash flow is limited, in that it does not
represent residual cash flows available for discretionary expenditures
as the measure does not deduct the payments required for debt service
and other contractual obligations or payments made for business
acquisitions. Therefore, we believe it is important to view free cash flow
as a measure that provides supplemental information to our
Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous
methods may exist for calculating a companys free cash flow. As a result,
the method used by our management to calculate our free cash flow
may differ from the methods other companies use to calculate their free
cash flow. We urge you to understand the methods used by other
companies to calculate their free cash flow before comparing our free
cash flow to that of such other companies.
22
||
The following table sets forth a reconciliation of free cash flow, a non-GAAP
financial measure, to net cash provided by operating activities, which we
believe to be the GAAP financial measure most directly comparable to
free cash flow, as well as information regarding net cash used in investing
activities and net cash used in financing activities.
2013
2012
2011
$ 25,591
$ 24,255
$ 23,643
(12,898)
(13,510)
(12,699)
Free cash flow
$ 12,693
$ 10,745
$ 10,944
Net cash used in

investing activities (1)
$(12,611) $(16,609) $(12,193)
Net cash used in

financing activities
$(11,972) $ (8,458) $(12,028)
Net cash provided by

operating activities
Payments for property
and equipment
(1) Net cash used in investing activities includes payments for property and
equipment, which is also included in our computation of free cash ow.
Results of Operations
The following discussion of our results of operations is based on
our continuing operations and excludes any results or discussion
of our discontinued operations.
Consolidated Results of Operations
(Amounts in millions,
except unit counts)
Total revenues
Percentage change in
total revenues from
previous fiscal year
Net sales
Percentage change in
net sales from
Total U.S. calendar comparable
store and club sales
Gross profit margin as a
percentage of sales
Operating income
Operating income as a
percentage of net sales
Income from continuing
operations
Unit counts
Retail square feet

2013
2012
2011
$469,162
$446,950
$421,849
5.0%
6.0%
3.4%
$466,114
$443,854
$418,952
5.0%
5.9%
3.4%
2.4%
1.6%
(0.6)%
24.4%
24.5%
24.8%
$ 27,801
$ 26,558
$ 25,542
6.0%
$ 17,756
10,773
1,072
6.0%
$ 16,454
10,130
1,037
6.1%
$ 15,959
8,970
985

Our total revenues increased 5.0% and 6.0% for fiscal 2013 and 2012,
respectively, when compared to the previous fiscal year as a result of
increases in net sales, which increased 5.0% and 5.9% in fiscal 2013 and
2012, respectively, when compared to the previous fiscal year. The
increase in net sales for fiscal 2013 was due to 3.3% growth in retail
square feet and positive comparable store and club sales. Additionally,
net sales from acquisitions, through their respective anniversary dates,
accounted for $4.0 billion of the increase in net sales. The increase in
net sales was partially offset by $4.5 billion of negative impact from
fluctuations in currency exchange rates. The increase in net sales for
fiscal 2012 was due to positive comparable store and club sales and
5.3% growth in retail square feet, which includes square feet added
through acquisitions. Net sales from acquisitions in fiscal 2012 accounted
for $4.7 billion of the increase in net sales and fluctuations in currency
exchange rates positively impacted net sales by $4.0 billion.
Our gross profit as a percentage of sales (gross profit rate) declined
12 and 33 basis points in fiscal 2013 and 2012, respectively, when
compared to the previous fiscal year. The decline in gross profit rate
during fiscal 2013 is primarily due to the Walmart U.S. segments strategic
focus on price investment and low price leadership. During fiscal 2012, all
three segments realized a decline in gross profit rate due to investments
in price. Generally, our Walmart U.S. and Walmart International segments
realize higher gross profit rates than our Sams Club segment, which
operates on lower margins as a membership club warehouse.
Operating expenses, as a percentage of net sales, were 19.1%, 19.2% and
19.4% for fiscal 2013, 2012 and 2011, respectively. In fiscal 2013 and 2012,
operating expenses, as a percentage of net sales, decreased primarily
due to our continued focus on expense management. We leveraged
operating expenses in fiscal 2013 and 2012. We are working to reduce
operating expenses as a percentage of sales by at least 100 basis points
over a five-year period beginning with fiscal 2013 and achieved a
14 basis point reduction in fiscal 2013.
Operating income was $27.8 billion, $26.6 billion and $25.5 billion for
fiscal 2013, 2012 and 2011, respectively. Operating income increased in
fiscal 2013 and 2012, when compared to the previous fiscal year, primarily
for the reasons described above. Fluctuations in currency exchange rates
negatively impacted operating income $111 million in fiscal 2013 and
positively impacted operating income $105 million and $231 million in
fiscal 2012 and 2011, respectively.
Our effective income tax rate was 31.0% for fiscal 2013 compared with
32.6% and 32.2% for fiscal 2012 and 2011, respectively. The fiscal 2013
effective income tax rate was lower than the previous fiscal year primarily
due to a number of discrete tax items, including the positive impact from
fiscal 2013 legislative changes arising at the end of the fiscal year, most
notably the American Taxpayer Relief Act of 2012. The fiscal 2012 effective
income tax rate was largely consistent with that for fiscal 2011. The
reconciliation from the U.S. statutory rate to the effective income tax
rates for fiscal 2013, 2012 and 2011 is presented in Note 9 in the Notes to
Consolidated Financial Statements. Looking forward, we expect the
annual effective income tax rate for fiscal year ended January 31, 2014
(fiscal 2014) to range between 32.0% and 33.0%. As was the case with
our effective income tax rate for fiscal 2013, our effective income tax rate
may fluctuate from period to period due to a variety of factors, including
changes in our assessment of certain tax contingencies, valuation
allowances, changes in tax laws, outcomes of administrative audits, the
impact of other discrete items and the mix of earnings among our U.S.
and international operations where the statutory rates are generally lower
than the U.S. statutory rate.
As a result of the factors discussed above, we reported $17.8 billion,
$16.5 billion and $16.0 billion of income from continuing operations for
fiscal 2013, 2012 and 2011, respectively. Diluted income per common
share from continuing operations attributable to Walmart (EPS) was
$5.02, $4.54 and $4.18 in fiscal 2013, 2012 and 2011, respectively. For fiscal
2014, we expect EPS to range between $5.20 and $5.40, which includes
incremental fiscal 2014 expenses of approximately $0.09 per share for
our e-commerce operations.
Walmart U.S. Segment
(Amounts in millions, except unit counts)
Net sales
Percentage change in net sales
from previous fiscal year
Calendar comparable store sales
Operating income
Operating income as a
percentage of net sales
Unit counts
Retail square feet
2013
$274,490
2012
2011
$264,186 $260,261
3.9%
1.5%
0.1%
2.0%
0.3%
(1.5)%
$ 21,500 $ 20,391 $ 19,941
7.8%
4,005
641
7.7%
3,868
627
7.7%
3,804
617
|| 23

Net sales for the Walmart U.S. segment increased 3.9% and 1.5% for fiscal
2013 and 2012, respectively, when compared to the previous fiscal year.
The increase in net sales for fiscal 2013 compared to fiscal 2012 was due
to a 2.0% increase in comparable store sales as a result of higher average
ticket and an increase in customer traffic, combined with a 2.2% increase
in retail square feet. The increase in net sales for fiscal 2012 compared to
fiscal 2011 was primarily due to an increase of 1.6% in retail square feet.
Gross profit rate declined 16 basis points for fiscal 2013, when compared
to the previous fiscal year, primarily due to our strategic focus on price
investment and low price leadership. Gross profit rate was relatively flat
in fiscal 2012 when compared to the previous fiscal year.
Operating expenses, as a percentage of segment net sales, declined
27 and 10 basis points during fiscal 2013 and 2012, respectively, when
compared to the previous fiscal year, primarily due to our continued
focus on productivity and expense management. As a result, Walmart
U.S. leveraged operating expenses in fiscal 2013 and 2012.
As a result of the factors discussed above, operating income was
$21.5 billion, $20.4 billion and $19.9 billion during fiscal 2013, 2012 and
2011, respectively. Walmart U.S. grew operating income faster than
sales during fiscal 2013 and 2012.
Walmart International Segment
(Amounts in millions,
except unit counts)
Net sales
Percentage change from
Operating income
Operating income as
a percentage of net sales
Unit counts
Retail square feet
2013
2012
2011
$135,201
$125,873
$109,232
7.4%
15.2%
12.1%
6,694
$ 6,182
$ 5,575
5.0%
6,148
348
4.9%
5,651
329
5.1%
4,557
287
Net sales for the Walmart International segment increased 7.4% and
15.2% for fiscal 2013 and 2012, respectively, when compared to the previous fiscal year. The increase in net sales for fiscal 2013 was due to growth
in retail square feet of 5.9% and positive comparable sales. In addition,
net sales from acquisitions, through their respective anniversary dates,
accounted for $4.0 billion of the increase in net sales. The increase in net
sales was partially offset by $4.5 billion of negative impact from fluctuations in currency exchange rates. The increase in net sales for fiscal 2012
was due to 14.7% growth in retail square feet, which includes square feet
added through acquisitions. In fiscal 2012, acquisitions contributed
$4.7 billion in sales and a positive impact of $4.0 billion from fluctuations
in currency exchange rates.
24
||
Gross profit rate was flat in fiscal 2013, when compared to fiscal 2012.
Gross profit rate decreased 46 basis points for fiscal 2012, when
compared to fiscal 2011, due primarily to acquisitions included in
the fiscal 2012 results and not in the fiscal 2011 results.
Operating expenses, as a percentage of segment net sales, decreased
22 and 19 basis points in fiscal 2013 and 2012, respectively, when
compared to the previous fiscal year. Walmart International leveraged
operating expenses in fiscal 2013 and 2012, primarily due to our global
focus on expense management. While each country is focused on
leveraging operating expenses, the countries that generated the most
leverage included Brazil, Chile and the United Kingdom in fiscal 2013
and the United Kingdom, Japan and Canada in fiscal 2012.
As a result of the factors discussed above, operating income was
$6.7 billion, $6.2 billion and $5.6 billion for fiscal 2013, 2012 and 2011,
respectively. Fluctuations in currency exchange rates negatively
impacted operating income $111 million in fiscal 2013 and positively
impacted operating income $105 million and $231 million in fiscal 2012
and 2011, respectively. Walmart International grew operating income
faster than sales in fiscal 2013, but did not grow operating income faster
than sales in fiscal 2012.
Sams Club Segment
We believe the information in the following table under the caption
Excluding Fuel is useful to investors because it permits investors to
understand the effect that fuel sales, which are impacted by the volatility
of fuel prices, has on the operating results of the Sams Club segment.
Volatility in fuel prices may continue to impact the operating results of
the Sams Club segment in the future.
(Amounts in millions, except unit counts)
Including fuel
Net sales
Calendar comparable club sales
Operating income
Operating income as
Unit counts
Retail square feet
Excluding fuel
Net sales
Calendar comparable club sales
Operating income
Operating income as
2013
2012
2011
$56,423
$53,795
$49,459
4.9%
8.8%
3.5%
4.1%
8.4%
3.9%
$ 1,963
$ 1,848 $ 1,695
3.5%
620
83
$49,789
3.4%
611
82
$47,616
3.4%
609
81
$45,193
4.6%
5.4%
1.4%
3.8%
5.0%
1.9%
$ 1,916
$ 1,809 $ 1,675
3.8%
3.8%
3.7%

Net sales for Sams Club increased 4.9% and 8.8% for fiscal 2013 and 2012,
respectively, when compared to the previous fiscal year. The net sales
increase in fiscal 2013 was primarily due to positive comparable club sales,
driven by an increase in customer traffic and average ticket. The addition
of nine new clubs in fiscal 2013 also helped increase net sales. The net
sales increase in fiscal 2012 was primarily due to positive comparable
club sales, driven by an increase in customer traffic and average ticket
and higher fuel sales. Higher fuel sales, resulting from higher fuel prices
and increased gallons sold, positively impacted comparable sales by
340 basis points during fiscal 2012.
Gross profit rate was flat in fiscal 2013 when compared to fiscal 2012 and
was not impacted by fuel. In fiscal 2012, gross profit rate decreased 41 basis
points when compared to fiscal 2011, driven by the highly competitive
retail environment, as well as inflation and high fuel costs. In fiscal 2012,
fuel costs negatively impacted the comparison by 33 basis points.
Operating expenses, as a percentage of net sales, decreased 9 and
55 basis points for fiscal 2013 and 2012, respectively, when compared to
the previous fiscal year. The fiscal 2013 decrease was due to improved
wage management, a benefit related to a prior year overpayment of
state excise taxes and the extent of club remodels. In fiscal 2012, the
decrease was due to the impact of fuel, which positively impacted the
comparison by 31 basis points, and improved wage management.
Sams Club leveraged operating expenses during fiscal 2013 and 2012.
As a result of the factors discussed above, as well as continued growth
in membership and other income, operating income was $2.0 billion,
$1.8 billion and $1.7 billion for fiscal 2013, 2012 and 2011, respectively.
Sams Club grew operating income faster than sales in fiscal 2013
and 2012.
Liquidity and Capital Resources

Liquidity
Cash flows provided by operating activities have historically supplied
us with a significant source of liquidity. We use these cash flows,
supplemented with long-term debt and short-term borrowings, to
fund our operations and global expansion activities. Generally, some
or all of the remaining available cash flow, if any, funds all or part of
the dividends on our common stock and share repurchases.
2013
2012
2011
$ 25,591
$ 24,255
$ 23,643
(12,898)
(13,510)
(12,699)
Free cash flow
$ 12,693
$ 10,745
$ 10,944
Net cash used in

investing activities (1)
$(12,611)
$(16,609) $(12,193)
Net cash used in

financing activities
$(11,972)
$ (8,458) $(12,028)
Net cash provided by

operating activities
Payments for property
and equipment
Cash Flows Provided by Operating Activities

Cash flows provided by operating activities were $25.6 billion, $24.3 billion
and $23.6 billion for fiscal 2013, 2012 and 2011, respectively. The increase
in cash flows provided by operating activities in fiscal 2013 and 2012,
when compared to the previous fiscal year, is primarily due to higher
income from continuing operations.
Cash Equivalents and Working Capital
Cash and cash equivalents were $7.8 billion and $6.6 billion at January 31,
2013 and 2012, respectively. Our working capital deficits were $11.9 billion
and $7.3 billion at January 31, 2013 and 2012, respectively. The increase in
our working capital deficit is primarily attributable to the increase in our
long-term debt due within one year, as well as an increase in accrued
income taxes. We generally operate with a working capital deficit due
to our efficient use of cash in funding operations and in providing returns
to our shareholders in the form of stock repurchases and payments
of dividends.
We employ financing strategies in an effort to ensure cash can be
made available in the country in which it is needed with the minimum
cost possible. We do not believe it will be necessary to repatriate cash
and cash equivalents held outside of the U.S. and anticipate our domestic
liquidity needs will be met through other funding sources (ongoing
cash flows generated from operations, external borrowings, or both).
Accordingly, we intend, with only certain limited exceptions, to continue
to permanently reinvest the Companys cash and cash equivalents held
outside of the U.S. in our foreign operations. If our intentions were to
change, most of the amounts held within our foreign operations could
be repatriated to the U.S., although any repatriations under current U.S.
tax laws would be subject to U.S. federal income taxes, less applicable
foreign tax credits. As of January 31, 2013 and January 31, 2012, cash and
cash equivalents of approximately $876 million and $768 million,
respectively, may not be freely transferable to the U.S. due to local laws
or other restrictions. We do not expect local laws, other limitations or
potential taxes on anticipated future repatriations of amounts held
outside of the U.S. to have a material effect on our overall liquidity,
financial condition or results of operations.
Cash Flows Used in Investing Activities
Cash flows used in investing activities generally consist of payments
for property and equipment, which were $12.9 billion, $13.5 billion and
$12.7 billion for fiscal 2013, 2012 and 2011, respectively. These capital
expenditures primarily relate to new store growth, as well as remodeling
costs for existing stores. We are focused on lowering the average cost of
remodels in order to shift more capital to new stores, while lowering the
amount of overall capital expenditures. Cash flows used in investing
activities also consist of payments for investments and business
acquisitions, net of cash acquired, which were of $0.3 billion, $3.5 billion
and $0.2 billion for fiscal 2013, 2012 and 2011, respectively.
(1) Net cash used in investing activities includes payments for property and
equipment, which is also included in our computation of free cash ow.
|| 25

Global Expansion Activities
In addition to our growth in retail square feet discussed throughout the
Results of Operations discussion, we also experienced global expansion
in e-commerce in each of our segments during fiscal 2013, with Walmart
U.S. and Sams Club focused on the e-commerce market in the U.S. and
Walmart International focused on the international e-commerce markets
in countries outside of the U.S., primarily the United Kingdom, Brazil and
China. Some of our fiscal 2013 e-commerce accomplishments included
developing pricing optimization tools, mobile applications and a new
search engine available on our various websites. Each of these accomplishments further supports our segment operations and helps us save
people money so they can live better. Our Walmart International segment
also increased its investment in Newheight Holdings Ltd, a company
that owns Yihaodian, an e-commerce business in China, to approximately
51% during fiscal 2013.
Our fiscal 2014 global expansion plans include growing our retail square
feet and expanding our e-commerce capabilities, which we plan to
finance primarily through cash flows from operations and future debt
financings. The following table provides our estimated range for fiscal
2014 capital expenditures, as well as our estimated range for growth in
retail square feet. Our anticipated e-commerce capital expenditures are
included in our estimated range for fiscal 2014 capital expenditures.
The amounts in the table do not include capital expenditures or growth
in retail square feet from any future acquisitions.
Fiscal 2014
Projected Capital
Expenditures
(in billions)
Fiscal 2014
Projected Growth in
Retail Square Feet
(in thousands)
Walmart U.S.
Sams Club
Other Unallocated
$ 5.5 to $
4.5 to
1.0 to
1.0 to
6.0
5.0
1.0
1.0
15,000 to 17,000
20,000 to 22,000
1,000 to 1,000
to
Total
$12.0 to $13.0
36,000 to 40,000
The following table represents the allocation of our capital expenditures

for property and equipment:
Capital Expenditures
New stores and clubs, including

expansions and relocations
Information systems, distribution,
e-commerce and other
Remodels
Total U.S.
Total capital expenditures
Allocation of Capital Expenditures

Fiscal Years Ending January 31,
2013
2012
$ 4,340
$ 3,735
2,922
995
2,852
1,648
8,257
4,641
8,235
5,275
$12,898
$13,510
Short-Term Borrowings
Short-term borrowings increased $2.8 billion for fiscal 2013, compared
to an increase of $3.0 billion during the same period in the previous fiscal
year. From time to time, we utilize the liquidity under our short-term
borrowing programs to fund our operations, dividend payments, share
repurchases, capital expenditures and for other cash requirements and
corporate purposes, as needed. As a result, we have continued to utilize
the favorable interest rates available on our commercial paper and
increased our short-term borrowings during the fiscal years ended
January 31, 2013 and 2012.
Long-Term Debt
We did not complete any significant long-term debt issuances during
fiscal 2013, due in part to our free cash flow of $12.7 billion, as well as our
continued use of short-term borrowings. Proceeds from the issuance
of long-term debt during fiscal 2012 and 2011 were $5.1 billion and
$11.4 billion, respectively, which were used to pay down or refinance
existing debt and for other general corporate purposes.
Dividends
Our total dividend payments were $5.4 billion, $5.0 billion and $4.4 billion
for fiscal 2013, 2012 and 2011, respectively. On February 21, 2013, the Board
of Directors approved an increase in the annual dividend for fiscal 2014 to
$1.88 per share, an increase of approximately 18% over the $1.59 per share
dividend paid in fiscal 2013. For fiscal 2014, the annual dividend will be
paid in four quarterly installments of $0.47 per share, according to the
following record and payable dates:
Record Date
Payable Date
March 12, 2013

May 10, 2013
August 9, 2013
December 6, 2013
April 1, 2013
June 3, 2013
September 3, 2013
January 2, 2014
Company Share Repurchase Program

From time to time, the Company repurchases shares of its common stock
under share repurchase programs authorized by the Board of Directors.
The current $15.0 billion share repurchase program has no expiration
date or other restriction limiting the period over which the Company
can make share repurchases under the program. At January 31, 2013,
authorization for $3.7 billion of share repurchases remained under the
current share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status.
We consider several factors in determining when to execute share

repurchases, including, among other things, current cash needs, capacity
for leverage, cost of borrowings and the market price of the Companys
common stock. Cash paid for share repurchases during fiscal 2013, 2012
and 2011, was as follows:
Share Repurchases
Cash Flows Used in Financing Activities

Cash flows used in financing activities generally consist of transactions
related to our short-term borrowings and long-term debt, as well as
dividends paid and share repurchases.
26
||
Total Number Average

of Shares
Price Paid
Total
Repurchased per Share Investment
(in millions) (in dollars) (in billions)
Fiscal year ended January 31, 2013 113.2

Fiscal year ended January 31, 2012
115.3
279.1
$67.15
54.64
53.03
$ 7.6
6.3
14.8

Capital Resources
Management believes cash flows from continuing operations and
proceeds from the issuance of short-term borrowings will be sufficient to
finance seasonal buildups in merchandise inventories and meet other
cash requirements. If our operating cash flows are not sufficient to pay
dividends and to fund our capital expenditures, we anticipate funding
any shortfall in these expenditures with a combination of short-term
borrowings and long-term debt. We plan to refinance existing long-term
debt obligations as they mature and may desire to obtain additional
long-term financing for other corporate purposes.
Our access to the commercial paper and long-term debt markets has
historically provided us with adequate sources of liquidity. We anticipate
no difficulty in obtaining financing from those markets in the future due
to our favorable experiences in the debt markets in the recent past. Our
ability to continue to access the commercial paper and long-term debt
markets with favorable interest rates and other terms will depend, to a
significant degree, on the ratings assigned by the credit rating agencies
to our indebtedness continuing to be at or above the level of our current
ratings. At January 31, 2013, the ratings assigned to our commercial paper
and rated series of our outstanding long-term debt were as follows:
Rating agency
Commercial paper
Long-term debt
A-1+
P-1
F1+
AA
Aa2
AA
Standard & Poors

Moodys Investors Service
Fitch Ratings
debt securities were lower than those noted above, our ability to access
the debt markets would be adversely affected. In addition, in such a case,
our cost of funds for new issues of commercial paper and long-term debt
(i.e., the rate of interest on any such indebtedness) would be higher than
our cost of funds had the ratings of those new issues been at or above
the level of the ratings noted above. The rating agency ratings are not
recommendations to buy, sell or hold our commercial paper or debt
securities. Each rating may be subject to revision or withdrawal at any
time by the assigning rating organization and should be evaluated
independently of any other rating. Moreover, each credit rating is
specific to the security to which it applies.
To monitor our credit rating and our capacity for long-term financing,
we consider various qualitative and quantitative factors. We monitor the
ratio of our debt-to-total capitalization as support for our long-term
financing decisions. At January 31, 2013 and 2012, the ratio of our debtto-total capitalization was 41.5% and 42.8%, respectively. For the purpose
of this calculation, debt is defined as the sum of short-term borrowings,
long-term debt due within one year, obligations under capital leases
due within one year, long-term debt and long-term obligations under
capital leases. Total capitalization is defined as debt plus total Walmart
shareholders equity. The decrease in our debt-to-capital ratio resulted
from our growth in retained earnings; although we returned $13.0 billion
to shareholders in the form of dividends and share repurchases, our
retained earnings grew $4.3 billion in fiscal 2013, primarily due to a
$17.0 billion increase in consolidated net income attributable to Walmart.
In the event that the ratings of our commercial paper or any rated series
of our outstanding long-term debt issues were lowered or withdrawn for
any reason or if the ratings assigned to any new issue of our long-term
Contractual Obligations and Other Commercial Commitments

The following table sets forth certain information concerning our obligations and commitments to make contractual future payments, such as debt
and lease agreements, and certain contingent commitments:
Payments Due During Fiscal Years Ending January 31,
Recorded contractual obligations:

Long-term debt (1)
Short-term borrowings
Capital lease obligations (2)
Unrecorded contractual obligations:
Non-cancelable operating leases
Estimated interest on long-term debt
Trade letters of credit
Purchase obligations
Total commercial commitments
Total
2014
20152016
20172018
Thereafter
$ 43,981
6,805
6,268
$ 5,587
6,805
620
$ 8,315
1,119
$2,255
939
$27,824
3,590
16,803
31,632
2,726
4,458
1,722
1,853
2,726
3,394
3,078
3,382
1,010
2,630
3,107
50
9,373
23,290
$112,673
$22,707
$16,904
$8,981
$64,081
(1) Long-term debt includes certain derivative fair value adjustments.

(2) Capital lease obligations includes executory costs and imputed interest related to capital lease obligations that are not yet recorded. Refer to Note 11 for more information.
Additionally, the Company has approximately $16.3 billion in undrawn lines of credit and standby letters of credit which, if drawn upon, would be
included in the liabilities section of the Companys Consolidated Balance Sheets.
Estimated interest payments are based on our principal amounts and expected maturities of all debt outstanding at January 31, 2013, and
managements forecasted market rates for our variable rate debt.
|| 27

Purchase obligations include legally binding contracts such as firm
commitments for inventory and utility purchases, as well as commitments
to make capital expenditures, software acquisition and license commitments and legally binding service contracts. Purchase orders for the
purchase of inventory and other services are not included in the table
above. Purchase orders represent authorizations to purchase rather than
binding agreements. For the purposes of this table, contractual obligations
for purchase of goods or services are defined as agreements that are
enforceable and legally binding and that specify all significant terms,
including: fixed or minimum quantities to be purchased; fixed, minimum
or variable price provisions; and the approximate timing of the transaction.
Our purchase orders are based on our current inventory needs and are
fulfilled by our suppliers within short time periods. We also enter into
contracts for outsourced services; however, the obligations under these
contracts are not significant and the contracts generally contain clauses
allowing for cancellation without significant penalty.
The expected timing for payment of the obligations discussed above is
estimated based on current information. Timing of payments and actual
amounts paid with respect to some unrecorded contractual commitments
may be different depending on the timing of receipt of goods or services
or changes to agreed-upon amounts for some obligations.
In addition to the amounts shown in the table above, $818 million of
unrecognized tax benefits are considered uncertain tax positions and
have been recorded as liabilities. The timing of the payment, if any,
associated with these liabilities is uncertain. Refer to Note 9 in the
Notes to Consolidated Financial Statements for additional discussion
of unrecognized tax benefits.
Off Balance Sheet Arrangements

In addition to the unrecorded contractual obligations presented above,
we have entered into certain arrangements, as discussed below, for
which the timing of payment, if any, is unknown.
In connection with certain debt financing, we could be liable for
early termination payments if certain unlikely events were to occur.
At January 31, 2013, the aggregate termination payment would have
been $104 million. The arrangement pursuant to which this payment
could be made will expire in fiscal 2019.
The Company has future lease commitments for land and buildings
for approximately 366 future locations. These lease commitments have
lease terms ranging from 4 to 50 years and provide for certain minimum
rentals. If executed, payments under operating leases would increase by
$82 million for fiscal 2014, based on current cost estimates.
Market Risk
In addition to the risks inherent in our operations, we are exposed to
certain market risks, including changes in interest rates and fluctuations
in currency exchange rates.
The analysis presented below for each of our market risk sensitive
instruments is based on a hypothetical scenario used to calibrate
potential risk and does not represent our view of future market changes.
The effect of a change in a particular assumption is calculated without
adjusting any other assumption. In reality, however, a change in one
factor could cause a change in another, which may magnify or negate
other sensitivities.
Interest Rate Risk

We are exposed to changes in interest rates as a result of our short-term borrowings and long-term debt issuances. We hedge a portion of our interest
rate risk by managing the mix of fixed and variable rate debt and entering into interest rate swaps.
The table below provides information about our financial instruments that are sensitive to changes in interest rates. For debt obligations, the table
represents the principal cash flows and related weighted-average interest rates by expected maturity dates. For interest rate swaps, including forward
starting interest rate swaps, the table represents the contractual cash flows and weighted-average interest rates by the contractual maturity date,
unless otherwise noted. The notional amounts are used to calculate contractual cash flows to be exchanged under the contracts. The weightedaverage variable rates are based upon prevailing market rates at January 31, 2013.
Expected Maturity Date
Liabilities
Short-term borrowings:
Variable rate
Weighted-average interest rate
Long-term debt:
Fixed rate
Variable rate
Fiscal 2014
$6,805
0.1%
Fiscal 2015
Fiscal 2016
$4,542
3.9%
$1,045
3.0%
$3,569
2.3%
$ 184
0.9%
$4,235
2.3%
$ 327
0.6%
Interest rate derivatives

Interest rate swaps:
Variable to fixed (1)
Weighted-average pay rate
Weighted-average receive rate
$3,045
2.5%
0.4%
$2,684
2.7%
0.3%
$ 327
0.9%
0.6%
Fixed to variable
Weighted-average pay rate
Weighted-average receive rate
$2,445
0.7%
5.0%
$1,000
0.3%
3.1%
Fiscal 2017
$1,127
2.8%
Fiscal 2018
$1,128
5.4%
Thereafter
$27,824
5.3%
Total
$ 6,805
0.1%
$42,425
4.6%
$ 1,556
2.3%
$ 6,056
2.5%
0.4%
$ 3,445
0.6%
4.4%
(1) Forward starting interest rate swaps have been included in the scal 2014 and 2015 maturity categories based on when the related hedged forecasted debt issuances,
and corresponding swap terminations, are expected to occur.
28
||

As of January 31, 2013, our variable rate borrowings, including the effect
of our commercial paper and interest rate swaps, represented 23% of our
total short-term and long-term debt. Based on January 31, 2013 debt
levels, a 100 basis point change in prevailing market rates would cause
our annual interest costs to change by approximately $47 million.
Foreign Currency Risk
We are exposed to fluctuations in foreign currency exchange rates as
a result of our net investments and operations in countries other than
the United States. We hedge a portion of our foreign currency risk by
entering into currency swaps and designating certain foreign-currencydenominated long-term debt as net investment hedges.
We hold currency swaps to hedge the currency exchange component
of our net investments and also to hedge the currency exchange rate
fluctuation exposure associated with the forecasted payments of principal and interest of non-U.S. denominated debt. The aggregate fair value
of these swaps was in an asset position of $453 million and $313 million
at January 31, 2013 and 2012, respectively. A hypothetical 10% increase or
decrease in the currency exchange rates underlying these swaps from
the market rate at January 31, 2013 would have resulted in a loss or gain
in the value of the swaps of $241 million. A hypothetical 10% change in
interest rates underlying these swaps from the market rates in effect at
January 31, 2013 would have resulted in a loss or gain in value of the
swaps of $51 million.
In addition to currency swaps, we have designated foreign-currencydenominated long-term debt as nonderivative hedges of net investments
of certain of our foreign operations. At January 31, 2013 and January 31,
2012, we had 2.5 billion and 3.0 billion, respectively, of outstanding
long-term debt designated as a hedge of our net investment in the
United Kingdom. At January 31, 2013, a hypothetical 10% increase or
decrease in value of the U.S. dollar relative to the British pound would
have resulted in a gain or loss in the value of the debt of $360 million.
In addition, we have outstanding long-term debt of 275 billion at
January 31, 2013 and January 31, 2012, that was designated as a hedge
of our net investment in Japan. At January 31, 2013, a hypothetical 10%
increase or decrease in value of the U.S. dollar relative to the Japanese yen
would have resulted in a gain or loss in the value of the debt of $273 million.
Other Matters
We discuss our existing FCPA investigation and related matters in the
Annual Report on Form 10-K for fiscal 2013, including certain risks arising
therefrom, in Part I, Item 1A of the Form 10-K under the caption Risk
Factors and in Note 10 to our Consolidated Financial Statements, which is
captioned Contingencies, under the sub-caption FCPA Investigation
and Related Matters. We also discuss various legal proceedings related to
the FCPA investigation in Item 3 of the Form 10-K under the caption Item 3.
Legal Proceedings, under the sub-caption II. Certain Other Proceedings.
Summary of Critical Accounting Estimates

Management strives to report our financial results in a clear and
understandable manner, although in some cases accounting and
disclosure rules are complex and require us to use technical terminology.
In preparing the Companys Consolidated Financial Statements, we
follow accounting principles generally accepted in the United States.
These principles require us to make certain estimates and apply judgments
that affect our financial position and results of operations as reflected in
our financial statements. These judgments and estimates are based on
past events and expectations of future outcomes. Actual results may
differ from our estimates.
statements. Following is a summary of our critical accounting estimates

and how they are applied in preparation of the financial statements.
Inventories
We value inventories at the lower of cost or market as determined
primarily by the retail method of accounting, using the last-in, first-out
(LIFO) method for substantially all of the Walmart U.S. segments
merchandise inventories. The retail method of accounting results in
inventory being valued at the lower of cost or market since permanent
markdowns are currently taken as a reduction of the retail value of
inventory. The Sams Club segments merchandise is valued based on
the weighted-average cost using the LIFO method. Inventories for the
Walmart International operations are primarily valued by the retail method
of accounting and are stated using the first-in, first-out (FIFO) method.
Under the retail method, inventory is stated at cost, which is determined
by applying a cost-to-retail ratio to each merchandise groupings retail
value. The FIFO cost-to-retail ratio is generally based on the fiscal year
purchase activity. The cost-to-retail ratio for measuring any LIFO provision
is based on the initial margin of the fiscal year purchase activity less the
impact of any permanent markdowns. The retail method requires management to make certain judgments and estimates that may significantly
impact the ending inventory valuation at cost, as well as the amount of
gross profit recognized. Judgments made include recording markdowns
used to sell inventory and shrinkage. When management determines the
salability of inventory has diminished, markdowns for clearance activity
and the related cost impact are recorded. Factors considered in the
determination of markdowns include current and anticipated demand,
customer preferences and age of merchandise, as well as seasonal and
fashion trends. Changes in weather patterns and customer preferences
related to fashion trends could cause material changes in the amount
and timing of markdowns from year to year.
When necessary, we record a LIFO provision for the estimated annual
effect of inflation, and these estimates are adjusted to actual results
determined at year-end. Our LIFO provision is calculated based on
inventory levels, markup rates and internally generated retail price
indices. At January 31, 2013 and 2012, our inventories valued at LIFO
approximated those inventories as if they were valued at FIFO.
We provide for estimated inventory losses (shrinkage) between
physical inventory counts on the basis of a percentage of sales.
Following annual inventory counts, the provision is adjusted to reflect
updated historical results.
Impairment of Assets
We evaluate long-lived assets other than goodwill and assets with
indefinite lives for indicators of impairment whenever events or changes
in circumstances indicate their carrying amounts may not be recoverable.
Managements judgments regarding the existence of impairment indicators are based on market conditions and operational performance,
such as operating income and cash flows. The evaluation for long-lived
assets is performed at the lowest level of identifiable cash flows, which is
generally at the individual store level or, in certain circumstances, at the
market group level. The variability of these factors depends on a number
of conditions, including uncertainty about future events and changes in
demographics. Thus, our accounting estimates may change from period
to period. These factors could cause management to conclude that
impairment indicators exist and require impairment tests be performed,
which could result in management determining the value of long-lived
assets is impaired, resulting in a write-down of the long-lived assets.
Management continually reviews our accounting policies, how they

are applied and how they are reported and disclosed in our financial
|| 29

Goodwill and other indefinite-lived acquired intangible assets are not
amortized, but are evaluated for impairment annually or whenever events
or changes in circumstances indicate that the value of a certain asset
may be impaired. Generally, this evaluation begins with a qualitative
assessment to determine whether a quantitative impairment test is
necessary. If we determine, after performing an assessment based on
the qualitative factors, that the fair value of the reporting unit is more
likely than not less than the carrying amount, or that a fair value of the
reporting unit substantially in excess of the carrying amount cannot be
assured, then a quantitative impairment test would be required. The
quantitative test for impairment requires management to make judgments
relating to future cash flows, growth rates, and economic and market
conditions. These evaluations are based on determining the fair value of
a reporting unit or asset using a valuation method such as discounted
cash flow or a relative, market-based approach. Historically, we have
generated sufficient returns within the applicable reporting units to
recover the cost of goodwill and other indefinite-lived acquired intangible
assets. Because of the nature of the factors used in these tests, if different
conditions occur in future periods, future operating results could be
materially impacted.
Income Taxes
Income taxes have a significant effect on our net earnings. As a global
commercial enterprise, our tax rates are affected by many factors, including our global mix of earnings, the extent to which those global earnings
are indefinitely reinvested outside the United States, legislation, acquisitions, dispositions and tax characteristics of our income. Our tax returns
are routinely audited and settlements of issues raised in these audits
sometimes affect our tax provisions. Accordingly, the determination of
our provision for income taxes requires significant judgment, the use of
estimates, and the interpretation and application of complex tax laws.
Significant judgment is required in assessing the timing and amounts of
deductible and taxable items and the probability of sustaining uncertain
tax positions. The benefits of uncertain tax positions are recorded in
our financial statements only after determining a more-likely-than-not
probability that the uncertain tax positions will withstand challenge, if
any, from taxing authorities. When facts and circumstances change, we
reassess these probabilities and record any changes in the financial
statements as appropriate. We account for uncertain tax positions by
determining the minimum recognition threshold that a tax position is
required to meet before being recognized in the financial statements.
This determination requires the use of judgment in assessing the timing
and amounts of deductible and taxable items.
Forward-Looking Statements
This Annual Report contains statements that Walmart believes are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended. Those statements are
intended to enjoy the protection of the safe harbor for forward-looking
statements provided by that Act. Those forward-looking statements
include statements in Managements Discussion and Analysis of Financial
Condition and Results of Operations: under the caption Overview with
respect to the volatility of currency exchange rates possibly affecting
the results, including net sales and operating income, of Walmart and
its Walmart International segment in the future; under the captions
Company Performance Metrics and Company Performance Metrics
Leverage Operating Income with respect to Walmarts objectives of
growing net sales at a faster rate than operating expenses and growing
operating income at a faster rate than net sales; under the caption
Results of Operations Consolidated Results of Operations with respect
30
||
to our goal of reducing our operating expenses as a percentage of sales

by at least 100 basis points over a five-year period, regarding the possible
fluctuation of our effective tax rate over future periods and with respect
to managements expectation that our diluted earnings per share from
continuing operations attributable to Walmart for the fiscal year ending
January 31, 2014 will be within the range of $5.20 and $5.40 per share,
and the earnings per share will include incremental expenses of approximately $0.09 per share for Walmarts e-commerce business; under the
caption Results of Operations Sams Club Segment with respect to the
volatility of fuel prices possibly continuing to affect the operating results
of Walmarts Sams Club segment in the future; under the caption
Liquidity and Capital Resources Cash Flows Provided by Operating
Activities Cash Equivalents and Working Capital, as well as in Note 1 to
our Consolidated Financial Statements, regarding our ability to meet our
liquidity needs through sources other than the cash we hold outside of
the United States, our intention to permanently reinvest cash held outside
of the United States, and our ability to repatriate cash held outside of the
United States; under the caption Liquidity and Capital Resources Cash
Flows Used in Investing Activities Global Expansion Activities with respect
to Walmarts fiscal 2014 global expansion plans including growing our
retail square feet and expanding our e-commerce capabilities and our
plans to finance that expansion primarily through cash flows and future
debt financings, with respect to Walmarts estimated range of capital
expenditures (including e-commerce capital expenditures) in fiscal 2014
for the Walmart U.S. segment, the Walmart International segment, the
Sams Club segment, in the other unallocated category and in total,
with respect to the estimated/projected growth in retail square feet in
total and by reportable segment in fiscal 2014; under the caption
Liquidity and Capital Resources Cash Flows Used in Financing Activities
Dividends, as well as in Note 15 to our Consolidated Financial Statements
and elsewhere in this Annual Report under the caption Dividends
payable per share, regarding the payment of the dividend on our shares
of common stock in fiscal 2014, the expected payment of certain
installments of the dividend on our shares of common stock on certain
dates in fiscal 2014 and the expected total amount of the dividend per
share to be paid in fiscal 2014; under the caption Liquidity and Capital
Resources Capital Resources with respect to Walmarts ability to finance
seasonal build-ups in inventories and to meet other cash requirements
with cash flows from operations and short-term borrowings, Walmarts
anticipated funding of any shortfall in cash to pay dividends and to fund
capital expenditures with short-term borrowings and long-term debt,
Walmarts plan to refinance existing long-term debt as it matures and its
anticipation that it may obtain additional long-term financing for other
corporate purposes, Walmarts ability to obtain financing from the
commercial paper and long-term debt markets, the factors that influence
Walmarts ability to access those markets on favorable terms and the factors
that could adversely affect Walmarts ability to access those markets on
favorable terms; and under the caption Liquidity and Capital Resources
O Balance Sheet Arrangements with respect to the amount of increases
in payments under operating leases if certain leases are executed.
These forward-looking statements also include statements in: Note 3 to
our Consolidated Financial Statements regarding the weighted-average
periods over which certain compensation cost is expected to be recognized; Note 9 to our Consolidated Financial Statements regarding the
possible reduction of U.S. tax liability on accumulated but undistributed
earnings of our non-U.S. subsidiaries, the realization of certain deferred
tax assets, possible reduction of unrecognized tax benefits, and the
reasons for such reductions, the magnitude of their impact on our results

of operations and financial condition and the possibility that the resolution
of a group of related matters might result in a material liability to Walmart;
and Note 10 to our Consolidated Financial Statements regarding an
adverse decision in, or settlement of, certain litigation to which Walmart
is a party possibly resulting in material liability to Walmart and respecting
managements expectations that the certain matters relating to an FCPA
investigation will not have a material adverse effect on its business. The
section of this Annual Report captioned Walmart U.S. includes a forward-looking statement that relates to managements expectation for
the Walmart U.S. segment to add retail square feet within a certain range
and to open a number of new units within a certain range in fiscal 2014.
The section of this Annual Report captioned Sams Club includes a
forward-looking statement that relates to managements expectation for
the Sams Club segment opening a certain number of new clubs and
expanding or relocating a certain number of other clubs in fiscal 2014.
The section of this Annual Report captioned Global eCommerce
includes forward-looking statements that relate to managements goals
for our e-commerce operations. The forward-looking statements
described above are identified by the use in such statements of one or
more of the words or phrases aim, allocation, anticipate, anticipated, commitment, could be, could potentially be, could reduce,
estimated, expansion, expect, goal, grow, intend, is expected,
may continue, may fluctuate, may impact, may not be, may
result, objective, objectives, plan, plans, projected, to reduce,
will be, will be paid, will depend, will have, will open, will
reduce, will strengthen, would be, and would increase, and other
similar words or phrases. Similarly, descriptions of our objectives,
strategies, plans, goals or targets are also forward-looking statements.
These statements discuss, among other things, expected growth,
future revenues, future cash flows, future capital expenditures, future
performance, future initiatives and the anticipation and expectations
of Walmart and its management as to future occurrences and trends.
The forward-looking statements included in this Annual Report and that
we make elsewhere are subject to certain factors, in the United States
and internationally, that could materially affect our financial performance,
our results of operations, including our sales, earnings per share or comparable store sales or comparable club sales and our effective income tax
rate for any period and our business operations, business strategy, plans,
goals or objectives. These factors include, but are not limited to: general
economic conditions, including changes in the economy of the United
States or other specific markets in which we operate, economic instability,
changes in the monetary policies of the United States, the Board of
Governors of the Federal Reserve System, other governments or central
banks, economic crises and disruptions in the financial markets, including as a result of sovereign debt crises, governmental budget deficits,
unemployment and partial employment levels, employment conditions
within our markets, credit availability to consumers and businesses, levels
of consumer disposable income, consumer confidence, consumer credit
availability, consumer spending patterns, consumer debt levels, consumer
preferences, the timing of receipt of tax refund checks by consumers,
inflation, deflation, commodity prices, the cost of the goods we sell,
competitive pressures, the seasonality of our business, seasonal buying
patterns in the United States and our other markets, labor costs,
transportation costs, the cost of diesel fuel, gasoline, natural gas and
electricity, the selling prices of fuel, the cost of healthcare and other
benefits, accident costs, our casualty and other insurance costs,
information security costs, the cost of construction materials, availability
of acceptable building sites for new stores, clubs and other formats,
availability of qualified labor pools in the specific markets in which we
operate, zoning, land use and other regulatory restrictions, competitive
pressures, accident-related costs, weather conditions, patterns and
events, climate change, catastrophic events and natural disasters, as well
as storm and other damage to our stores, clubs, distribution and other
facilities, store closings and other limitations on our customers access to
our stores and clubs resulting from such events and disasters, disruption
in the availability of our online shopping sites on the internet, cyberattacks
on our information systems, disruption in our supply chain, including
availability and transport of goods from domestic and foreign suppliers,
trade restrictions, changes in tariff and freight rates, adoption of or
changes in tax, labor and other laws and regulations that affect our
business, including changes in corporate and personal tax rates and the
imposition of new taxes and surcharges, costs of compliance with laws
and regulations, the mix of our earnings from our United States and foreign operations, changes in our assessment of certain tax contingencies,
valuation allowances, outcome of administrative audits, the impact of
discrete items on our effective tax rate, the resolution of tax matters,
developments in and the outcome of legal and regulatory proceedings
to which we are a party or are subject and the expenses associated
therewith, currency exchange rate fluctuations and volatility, fluctuations
in market rates of interest, and other conditions and events affecting
domestic and global financial and capital markets, public health
emergencies, economic and geo-political conditions and events,
including civil unrest and disturbances and terrorist attacks. Moreover,
we typically earn a disproportionate part of our annual operating
income in the fourth quarter as a result of the seasonal buying patterns.
Those buying patterns are difficult to forecast with certainty.
The foregoing list of factors that may affect our business operations and
financial performance is not exclusive. Other factors and unanticipated
events could adversely affect our business operations and financial performance. We discuss certain of these matters more fully, as well as certain
risk factors that may affect our business operations, financial condition,
results of operations and liquidity in other of our filings with the
Securities and Exchange Commission (the SEC), including our Annual
Report on Form 10-K under the heading Item 1A. Risk Factors. We filed
our Annual Report on Form 10-K for the fiscal year ended January 31, 2013,
with the SEC on March 26, 2013. The forward-looking statements
described above are made based on knowledge of our business and the
environment in which we operate and assumptions that we believe to
be reasonable at the time such forward-looking statements are made.
However, because of the factors described and listed above, as well as
other factors, or as a result of changes in facts, assumptions not being
realized or other circumstances, actual results may materially differ from
anticipated results described or implied in these forward-looking statements. We cannot assure the reader that the results or developments
expected or anticipated by us will be realized or, even if substantially
realized, that those results or developments will result in the expected
consequences for us or affect us, our business or our operations in the
way we expect. You are urged to consider all of these risks, uncertainties
and other factors carefully in evaluating the forward-looking statements
and not to place undue reliance on such forward-looking statements.
The forward-looking statements included in this Annual Report speak
only as of the date of this report, and we undertake no obligation to
update these forward-looking statements to reflect subsequent events
or circumstances, except as may be required by applicable law.
|| 31
Consolidated Statements of Income

(Amounts in millions, except per share data)
Revenues:
Net sales
Membership and other income
Total revenues
Costs and expenses:
Cost of sales
Operating, selling, general and administrative expenses
2013
2012
2011
$466,114
3,048
$443,854
3,096
$418,952
2,897
469,162
446,950
421,849
352,488
88,873
335,127
85,265
314,946
81,361
27,801
26,558
25,542
1,977
274
(187)
2,034
288
(162)
1,928
277
(201)
Operating income
Interest:
Debt
Capital leases
Interest income
Interest, net
Income from continuing operations before income taxes
Provision for income taxes:
Current
Deferred
Total provision for income taxes
2,064
2,160
2,004
25,737
24,398
23,538
7,999
(18)
6,742
1,202
6,703
876
7,981
7,944
7,579

Income (loss) from discontinued operations, net of income taxes
17,756
16,454
(67)
15,959
1,034
Consolidated net income

Less consolidated net income attributable to noncontrolling interest
17,756
(757)
16,387
(688)
16,993
(604)
Consolidated net income attributable to Walmart
$ 16,999
$ 15,699
$ 16,389
Basic net income per common share:

Basic income per common share from continuing operations attributable to Walmart
Basic income (loss) per common share from discontinued operations attributable to Walmart
5.04
4.56
(0.02)
4.20
0.28
5.04
4.54
4.48
5.02
4.54
(0.02)
4.18
0.29
5.02
4.52
4.47
Basic net income per common share attributable to Walmart

Diluted net income per common share:
Diluted income per common share from continuing operations attributable to Walmart
Diluted income (loss) per common share from discontinued operations attributable to Walmart
Diluted net income per common share attributable to Walmart
Weighted-average common shares outstanding:
Basic
Diluted
Dividends declared per common share
3,374
3,389
$
1.59
3,460
3,474
$
1.46
3,656
3,670
$
1.21
See accompanying notes.
Consolidated Statements of Comprehensive Income

2012
2011
$17,756
(684)
(73)
$16,387
(627)
(61)
$16,993
(584)
(20)
16,999
15,699
16,389
Other comprehensive income (loss), net of income taxes:

Currency translation and other
Derivative instruments
Minimum pension liability
1,042
136
(166)
(2,758)
(67)
43
1,137
(17)
(145)
Other comprehensive income (loss), net of income taxes

Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest
Less other comprehensive income (loss) attributable to redeemable noncontrolling interest
1,012
(138)
(51)
(2,782)
660
66
975
(162)
(97)
823
(2,056)
716
18,768
(822)
(124)
13,605
33
5
17,968
(746)
(117)
$17,822
$13,643
$17,105

Less consolidated net income attributable to nonredeemable noncontrolling interest
Less consolidated net income attributable to redeemable noncontrolling interest
Other comprehensive income (loss) attributable to Walmart

Comprehensive income, net of income taxes
Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest
Less comprehensive income (loss) attributable to redeemable noncontrolling interest
Comprehensive income attributable to Walmart
32
||

2013
Consolidated Balance Sheets

As of January 31,
ASSETS
Current assets:
Cash and cash equivalents
Receivables, net
Inventories
Prepaid expenses and other
2013
7,781
6,768
43,803
1,588
$ 6,550
5,937
40,714
1,774
59,940
54,975
165,825
(51,896)
155,002
(45,399)
113,929
109,603
5,899
(3,147)
5,936
(3,215)
2,752
2,721
20,497
5,987
20,651
5,456
$203,105
$193,406
6,805
38,080
18,808
2,211
5,587
327
$ 4,047
36,608
18,180
1,164
1,975
326
Total current liabilities
71,818
62,300
Long-term debt
Long-term obligations under capital leases
Deferred income taxes and other
Redeemable noncontrolling interest
38,394
3,023
7,613
519
44,070
3,009
7,862
404
332
3,620
72,978
(587)
342
3,692
68,691
(1,410)
76,343
5,395
71,315
4,446
Total current assets

Property and equipment:
Property and equipment
Less accumulated depreciation
Property and equipment, net
Property under capital leases:
Property under capital leases
Less accumulated amortization
2012
Property under capital leases, net

Goodwill
Other assets and deferred charges
Total assets
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings
Accounts payable
Accrued liabilities
Accrued income taxes
Long-term debt due within one year
Obligations under capital leases due within one year
Commitments and contingencies

Equity:
Common stock
Capital in excess of par value
Retained earnings
Accumulated other comprehensive income (loss)
Total Walmart shareholders equity
Nonredeemable noncontrolling interest
Total equity
Total liabilities and equity
81,738
75,761
$203,105
$193,406
|| 33
Consolidated Statements of Shareholders Equity
||
Retained
Earnings
(Amounts in millions and exclude

redeemable noncontrolling interest)
Common Stock
Shares
Amount
Balances as of February 1, 2010

Other comprehensive income,
net of income taxes
Cash dividends declared
($1.21 per share)
Purchase of Company stock
Other
3,786
$378
$3,803
$ 66,357
16,389
(280)
10
(28)
2
Balances as of January 31, 2011

net of income taxes
($1.46 per share)
Nonredeemable noncontrolling
interest of acquired entity
Other
3,516
Accumulated
Other
Comprehensive
Income (Loss)
Nonredeemable
Noncontrolling Total
Interest
Equity
$ 70,468
16,389
$2,180
584
$ 72,648
16,973
716
716
162
878
(487)
261
(4,437)
(14,319)
(23)
(4,437)
(14,834)
240
(221)
(4,437)
(14,834)
19
352
3,577
63,967
15,699
646
68,542
15,699
2,705
627
71,247
16,326
(2,056)
(2,056)
(660)
(2,716)
(113)
(11)
(229)
(5,048)
(5,930)
(5,048)
(6,170)
(5,048)
(6,170)
15
344
348
1,988
(214)
1,988
134

net of income taxes
($1.59 per share)
Nonredeemable noncontrolling
interest of acquired entity
Other
3,418
342
3,692
68,691
16,999
(1,410)
71,315
16,999
4,446
684
75,761
17,683
823
823
138
961
(115)
(11)
(357)
(5,361)
(7,341)
(5,361)
(7,709)
(5,361)
(7,709)
11
285
(10)
276
469
(342)
469
(66)
3,314
$332
$3,620
$72,978
$ (587)
$ 76,343
$5,395
$ 81,738
Total
Walmart
Shareholders
Equity
(70)
34
Capital in
Excess of
Par Value
Consolidated Statements of Cash Flows

2013
2012
2011
$ 17,756
$ 16,387
67
$ 16,993
(1,034)
17,756
16,454
15,959
8,501
(133)
527
8,130
1,050
398
7,641
651
1,087
(614)
(2,759)
1,061
271
981
(796)
(3,727)
2,687
(935)
994
(733)
(3,205)
2,676
(280)
(153)
Net cash provided by operating activities
25,591
24,255
23,643
Cash flows from investing activities:

Payments for property and equipment
Proceeds from the disposal of property and equipment
Investments and business acquisitions, net of cash acquired
Other investing activities
(12,898)
532
(316)
71
(13,510)
580
(3,548)
(131)
(12,699)
489
(202)
219
Net cash used in investing activities
(12,611)
(16,609)
(12,193)
2,754
211
(1,478)
(5,361)
(7,600)
(498)
3,019
5,050
(4,584)
(5,048)
(6,298)
(597)
503
11,396
(4,080)
(4,437)
(14,776)
(634)
(11,972)
(8,458)
(12,028)
223
(33)
66
1,231
6,550
(845)
7,395
(512)
7,907
Cash and cash equivalents at end of year
$ 7,781
$ 6,550
$ 7,395
Supplemental disclosure of cash flow information:

Income taxes paid
Interest paid
$ 7,304
2,262
$ 5,899
2,346
$ 6,984
2,163
Cash flows from operating activities:

Loss from discontinued operations, net of income taxes
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
Depreciation and amortization
Deferred income taxes
Other operating activities
Changes in certain assets and liabilities, net of effects of acquisitions:
Receivables, net
Inventories
Accounts payable
Accrued liabilities
Accrued income taxes
Cash flows from financing activities:

Net change in short-term borrowings
Proceeds from issuance of long-term debt
Payments of long-term debt
Dividends paid
Other financing activities
Net cash used in financing activities
Effect of exchange rates on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
|| 35
Notes to Consolidated Financial Statements
1 Summary of Significant Accounting Policies

General
Wal-Mart Stores, Inc. (Walmart or the Company) operates retail stores
in various formats under 69 banners around the world, aggregated into
three reportable segments: Walmart U.S., Walmart International and
Sams Club. Walmart is committed to saving people money so they can
live better. Walmart earns the trust of its customers every day by providing
a broad assortment of quality merchandise and services at everyday low
prices (EDLP) while fostering a culture that rewards and embraces mutual
respect, integrity and diversity. EDLP is the Companys pricing philosophy under which it prices items at a low price every day so its customers
trust that its prices will not change under frequent promotional activity.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Walmart
and its subsidiaries as of and for the fiscal years ended January 31, 2013
(fiscal 2013), January 31, 2012 (fiscal 2012) and January 31, 2011 (fiscal
2011). All material intercompany accounts and transactions have been
eliminated in consolidation. Investments in unconsolidated affiliates,
which are 50% or less owned, are accounted for primarily using the
equity method. These investments are immaterial to the Companys
Consolidated Financial Statements.
The Companys Consolidated Financial Statements are based on a fiscal
year ending on January 31 for the United States (U.S.) and Canadian
operations. The Company consolidates all other operations generally
using a one-month lag and based on a calendar year. There were no
significant intervening events during January 2013 that materially
affected the Consolidated Financial Statements.
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity
with U.S. generally accepted accounting principles. Those principles
require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities. Managements estimates and
assumptions also affect the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results may
differ from those estimates.
Cash and Cash Equivalents
The Company considers investments with a maturity when purchased
of three months or less to be cash equivalents. All credit card, debit card
and electronic benefits transfer transactions that process in less than
seven days are classified as cash and cash equivalents. The amounts due
from banks for these transactions classified as cash and cash equivalents
totaled $1.3 billion and $1.2 billion at January 31, 2013 and 2012, respectively.
In addition, cash and cash equivalents includes restricted cash of
$715 million and $547 million at January 31, 2013 and 2012, respectively,
which is primarily related to cash collateral holdings from various
counterparties, as required by certain derivative and trust agreements.
The Companys cash balances are held in various locations around the
world. Of the Companys $7.8 billion and $6.6 billion of cash and cash
equivalents at January 31, 2013 and 2012, respectively, $5.2 billion and
$5.6 billion, respectively, were held outside of the U.S. and are generally
utilized to support liquidity needs in the Companys foreign operations.
36
||
The Company employs financing strategies in an effort to ensure that

cash can be made available in the country in which it is needed with the
minimum cost possible. Management does not believe it will be necessary
to repatriate cash and cash equivalents held outside of the U.S. and
anticipates its domestic liquidity needs will be met through other funding
sources (ongoing cash flows generated from operations, external
borrowings, or both). Accordingly, management intends, with only certain
limited exceptions, to continue to permanently reinvest the Companys
cash and cash equivalents in its foreign operations. If the Companys
current intentions were to change, most of the amounts held within the
Companys foreign operations could be repatriated to the U.S., although
any repatriations under current U.S. tax laws would be subject to U.S.
federal income taxes, less applicable foreign tax credits. As of January 31,
2013 and 2012, cash and cash equivalents of approximately $876 million
and $768 million, respectively, may not be freely transferable to the U.S.
due to local laws or other restrictions. Management does not expect
local laws, other limitations or potential taxes on anticipated future
repatriations of amounts held outside of the U.S. to have a material
effect on the Companys overall liquidity, financial condition or results
of operations.
Receivables
Receivables are stated at their carrying values, net of a reserve for
doubtful accounts. Receivables consist primarily of amounts due from
the following:
Insurance companies resulting from pharmacy sales;
Banks for customer credit cards, debit cards and electronic bank
transfers that take in excess of seven days to process;
Consumer financing programs in certain international operations;
Suppliers for marketing or incentive programs; and
Real estate transactions.
The Walmart International segment offers a limited number of consumer
credit products, primarily through its financial institutions in select
countries. The receivable balance from consumer credit products was
$1.2 billion, net of a reserve for doubtful accounts of $115 million, at
January 31, 2013, compared to a receivable balance of $1.0 billion, net of
a reserve for doubtful accounts of $63 million, at January 31, 2012. These
balances are included in receivables, net, in the Companys Consolidated
Balance Sheets.
Inventories
The Company values inventories at the lower of cost or market as
determined primarily by the retail method of accounting, using the
last-in, first-out (LIFO) method for substantially all of the Walmart U.S.
segments inventories. The retail method of accounting results in
inventory being valued at the lower of cost or market since permanent
markdowns are currently taken as a reduction of the retail value of
inventory. The Walmart International segments inventories are primarily
valued by the retail method of accounting, using the first-in, first-out
(FIFO) method. The Sams Club segments inventories are valued based
on weighted-average cost using the LIFO method. At January 31, 2013
and 2012, the Companys inventories valued at LIFO approximate those
inventories as if they were valued at FIFO.

Property and Equipment
Property and equipment are stated at cost. Gains or losses on disposition
are recognized as earned or incurred. Costs of major improvements are
capitalized, while costs of normal repairs and maintenance are charged
to expense as incurred. The following table summarizes the Companys
property and equipment balances and includes the estimated useful lives
that are generally used to depreciate the assets on a straight-line basis:
Fiscal Years Ended
January 31,
Estimated
Useful Lives
Land
Buildings and improvements
Fixtures and equipment
Transportation equipment
Construction in progress
N/A
$ 25,612 $ 23,499
340 years
90,686
84,275
325 years
40,903
39,234
315 years
2,796
2,682
N/A
5,828
5,312

Accumulated depreciation
$165,825 $155,002
(51,896) (45,399)
Property and equipment, net
2013
2012
$113,929 $109,603
Leasehold improvements are depreciated over the shorter of the

estimated useful life of the asset or the remaining expected lease term.
Depreciation expense for property and equipment, including amortization of property under capital leases, for fiscal 2013, 2012 and 2011
was $8.4 billion, $8.1 billion and $7.6 billion, respectively. Interest costs
capitalized on construction projects were $74 million, $60 million and
$63 million in fiscal 2013, 2012 and 2011, respectively.
Long-Lived Assets
Long-lived assets are stated at cost. Management reviews long-lived assets
for indicators of impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. The evaluation
is performed at the lowest level of identifiable cash flows, which is at the
individual store or club level or, in certain circumstances, a market group
of stores. Undiscounted cash flows expected to be generated by the
related assets are estimated over the assets useful lives based on updated
projections. If the evaluation indicates that the carrying amount of the
assets may not be recoverable, any potential impairment is measured
based upon the fair value of the related asset or asset group as determined
by an appropriate market appraisal or other valuation technique.
Impairment charges of long-lived assets for fiscal 2013, 2012 and 2011
were not significant.
Goodwill and Other Acquired Intangible Assets
Goodwill represents the excess of the purchase price over the fair value
of net assets acquired in business combinations and is allocated to the
appropriate reporting unit when acquired. Other acquired intangible
assets are stated at the fair value acquired as determined by a valuation
technique commensurate with the intended use of the related asset.
Goodwill and indefinite-lived intangible assets are not amortized; rather,
they are evaluated for impairment annually and whenever events or
changes in circumstances indicate that the value of the asset may be
impaired. Definite-lived intangible assets are considered long-lived
assets and are amortized on a straight-line basis over the periods that
expected economic benefits will be provided.
Goodwill is evaluated for impairment using either a qualitative or

quantitative approach for each of the Companys reporting units.
Generally, a qualitative assessment is first performed to determine
whether a quantitative goodwill impairment test is necessary. If
management determines, after performing an assessment based on
the qualitative factors, that the fair value of the reporting unit is more
likely than not less than the carrying amount, or that a fair value of the
reporting unit substantially in excess of the carrying amount cannot
be assured, then a quantitative goodwill impairment test would be
required. The quantitative test for goodwill impairment is performed
by determining the fair value of the related reporting units. Fair value
is measured based on the discounted cash flow method and relative
market-based approaches.
For the reporting units that were tested using only the qualitative
assessment, management determined that the fair value of each
reporting unit is more likely than not greater than the carrying amount
and, as a result, quantitative analyses were not required. For the reporting
units tested using a quantitative impairment test, management
determined the fair value of each reporting unit is greater than the
carrying amount. Accordingly, the Company has not recorded any
impairment charges related to goodwill.
The following table reflects goodwill activity, by reportable segment,
for fiscal 2013 and 2012:
Walmart
Walmart U.S. International Sams Club
Balances as of
February 1, 2011
$239
Changes in currency
translation and other
200
Acquisitions (1)
Balances as of
January 31, 2012
Changes in currency
translation and other
Purchase accounting
adjustments for
prior fiscal year
acquisitions (2)
Acquisitions (3)
Balances as of
January 31, 2013
Total
$16,211
$313
$16,763
(535)
4,223
(535)
4,423
439
19,899
313
20,651
(65)
(65)
(532)
439
(528)
439
$443
$19,741
$313
$20,497
(1) Goodwill recorded for acquisitions in scal 2012 primarily relates to the acquisition
of 147 Netto stores from Dansk Supermarked in the United Kingdom and to the
acquisition of a 51% ownership in Massmart, a retailer based in South Africa.
Refer to Note 13 for more information about these acquisitions.
(2) Fiscal 2013 purchase accounting adjustments primarily relate to the nalization of
the Massmart purchase price allocation, which was preliminary at January 31, 2012.
(3) Goodwill recorded for scal 2013 acquisitions relates to several acquisitions
completed in scal 2013 that are not signicant, individually or in the aggregate,
to the Companys Consolidated Financial Statements.
|| 37

Indefinite-lived intangible assets are included in other assets and deferred
charges in the Companys Consolidated Balance Sheets. These assets
are evaluated for impairment based on their fair values using valuation
techniques which are updated annually based on the most recent variables
and assumptions. There were no impairment charges related to indefinitelived intangible assets recorded during fiscal 2013, 2012 and 2011.
Membership Fee
The Company recognizes membership fee revenue both in the United
States and internationally over the term of the membership, which is
typically 12 months. The following table summarizes membership fee
activity for fiscal 2013, 2012 and 2011:
Self-Insurance Reserves
The Company uses a combination of insurance, self-insured retention
and self-insurance for a number of risks, including, but not limited to,
workers compensation, general liability, vehicle liability, property and
the Companys obligation for employee-related health care benefits.
Liabilities relating to these claims associated with these risks are estimated
by considering historical claims experience, including frequency, severity,
demographic factors and other actuarial assumptions, including incurred
but not reported claims. In estimating its liability for such claims, the
Company periodically analyzes its historical trends, including loss
development, and applies appropriate loss development factors to the
incurred costs associated with the claims. The Company also maintains
stop-loss insurance coverage for workers compensation and general
liability of $5 million and $15 million, respectively, per occurrence, to limit
exposure to certain risks. Refer to Note 5 for more information about the
Companys self-insurance reserves.
Income Taxes
Income taxes are accounted for under the liability method. Deferred
tax assets and liabilities are recognized for the estimated future tax
consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates in effect for the year in which those temporary
differences are expected to be recovered or settled. The effect on
deferred tax assets and liabilities of a change in tax rate is recognized in
income in the period that includes the enactment date. Valuation
allowances are established when necessary to reduce deferred tax
assets to the amounts more likely than not to be realized.
The Company records a liability for unrecognized tax benefits resulting
from uncertain tax positions taken or expected to be taken in a tax return.
The Company records interest and penalties related to unrecognized
tax benefits in interest expense and operating, selling, general and
administrative expenses, respectively, in the Companys Consolidated
Statements of Income. Refer to Note 9 for additional income tax disclosures.
Revenue Recognition
Sales
The Company recognizes sales revenue net of sales taxes and estimated
sales returns at the time it sells merchandise to the customer.
2013
2012
2011
Deferred membership fee revenue,

beginning of year
Cash received from members
Membership fee revenue recognized
$ 559 $ 542 $ 532

1,133
1,111
1,074
(1,117) (1,094) (1,064)
Deferred membership fee revenue,

end of year
$ 575
$ 559
$ 542
Membership fee revenue is included in membership and other income

in the Companys Consolidated Statements of Income. The deferred
membership fee is included in accrued liabilities in the Companys
Consolidated Balance Sheets.
Shopping Cards
Customer purchases of shopping cards are not recognized as revenue
until the card is redeemed and the customer purchases merchandise
using the shopping card. Shopping cards in the U.S. do not carry an
expiration date and, therefore, customers and members can redeem
their shopping cards for merchandise indefinitely. Shopping cards in
certain foreign countries where the Company does business may have
expiration dates. A certain amount of shopping cards, both with and
without expiration dates, will not be redeemed. Management estimates
unredeemed shopping cards and recognizes revenue for these amounts
over shopping card historical usage periods based on historical
redemption rates. Management periodically reviews and updates its
estimates of usage periods and redemption rates.
Financial and Other Services
The Company recognizes revenue from service transactions at the time
the service is performed. Generally, revenue from services is classified
as a component of net sales in the Companys Consolidated Statements
of Income.
Cost of Sales
Cost of sales includes actual product cost, the cost of transportation to
the Companys warehouses, stores and clubs from suppliers, the cost of
transportation from the Companys warehouses to the stores, clubs
and customers and the cost of warehousing for the Sams Club segment
and import distribution centers. Cost of sales is reduced by advertising
reimbursements received from vendors that are not directly related to
specific advertising activities.
Payments from Suppliers
The Company receives consideration from suppliers for various
programs, primarily volume incentives, warehouse allowances and
reimbursements for specific programs such as markdowns, margin
protection, advertising and supplier-specific fixtures. Payments from
suppliers, except for certain advertising reimbursements directly related
to specific advertising activities and certain other reimbursements, are
accounted for as a reduction of cost of sales and are recognized in the
Companys Consolidated Statements of Income when the related
inventory is sold.
38
||

Operating, Selling, General and Administrative Expenses
Operating, selling, general and administrative expenses include all
operating costs of the Company, except cost of sales, as described above.
As a result, the majority of the cost of warehousing and occupancy for
the Walmart U.S. and Walmart International segments distribution
facilities is included in operating, selling, general and administrative
expenses. Because the Company does not include most of the cost of its
Walmart U.S. and Walmart International segments distribution facilities
in cost of sales, its gross profit and gross profit as a percentage of net
sales (gross profit margin) may not be comparable to those of other
retailers that may include all costs related to their distribution facilities
in cost of sales and in the calculation of gross profit.
Advertising Costs
Advertising costs are expensed as incurred and were $2.3 billion for
both fiscal 2013 and 2012, and $2.5 billion for fiscal 2011. Advertising costs
consist primarily of print, television and digital advertisements and are
recorded in operating, selling, general and administrative expenses
in the Companys Consolidated Statements of Income. Advertising
reimbursements received from suppliers are generally accounted for as a
reduction of cost of sales and recognized in the Companys Consolidated
Statements of Income when the related inventory is sold. When advertising
reimbursements are directly related to specific advertising activities,
they are recognized as a reduction of advertising expenses in operating,
selling, general and administrative expenses.
Leases
The Company estimates the expected term of a lease by assuming the
exercise of renewal options where an economic penalty exists that
would preclude the abandonment of the lease at the end of the initial
non-cancelable term and the exercise of such renewal is at the sole discretion of the Company. The expected term is used in the determination
of whether a store or club lease is a capital or operating lease and in the
calculation of straight-line rent expense. Additionally, the useful life of
leasehold improvements is limited by the expected lease term or the
economic life of the asset, whichever is shorter. If significant expenditures
are made for leasehold improvements late in the expected term of a
lease and renewal is reasonably assured, the useful life of the leasehold
improvement is limited to the end of the renewal period or economic
life of the asset, whichever is shorter.
Rent abatements and escalations are considered in the calculation
of minimum lease payments in the Companys capital lease tests and
in determining straight-line rent expense for operating leases.
Pre-Opening Costs
The cost of start-up activities, including organization costs, related
to new store openings, store remodels, expansions and relocations are
expensed as incurred and included in operating, selling, general and
administrative expenses in the Companys Consolidated Statements
of Income. Pre-opening costs totaled $316 million, $308 million and
$320 million for fiscal 2013, 2012 and 2011, respectively.
Currency Translation
The assets and liabilities of all international subsidiaries are translated
from the respective local currency to the U.S. dollar using exchange rates
at the balance sheet date. Related translation adjustments are recorded
as a component of accumulated other comprehensive income (loss). The
income statements of international subsidiaries are translated from the
respective local currencies to the U.S. dollar using average exchange
rates for the period covered by the income statements.
Reclassifications
Certain reclassifications have been made to prior fiscal year amounts
and balances to conform to the presentation in the current fiscal year.
These reclassifications did not impact consolidated operating income
or net income. Additionally, certain segment asset and expense
allocations have been reclassified among segments in the current
period. See Note 14 for further discussion of the Companys segments.
Recent Accounting Pronouncements
In February 2013, the Financial Accounting Standards Board (FASB)
issued Accounting Standards Update (ASU) 2013-02, which requires
entities to present information about significant items reclassified out of
accumulated other comprehensive income (loss) by component either
on the face of the statement where net income is presented or as a
separate disclosure in the notes to the financial statements. This ASU is
effective for the Company in the first quarter of fiscal 2014. The adoption
of this ASU is not expected to impact the Companys consolidated net
income, financial position or cash flows.
In July 2012, the FASB issued ASU 2012-02, which amends how companies
test for impairment of indefinite-lived intangible assets. The new guidance
permits a company to assess qualitative factors to determine whether it
is more likely than not that the fair value of an indefinite-lived intangible
asset is less than its carrying amount as a basis for determining whether
it is necessary to perform the annual impairment test. The ASU is effective
for the Company in the first quarter of fiscal 2014. The adoption of this
ASU is not expected to impact the Companys consolidated net income,
financial position or cash flows.
In 2011, the FASB issued two ASUs which amend guidance for the
presentation of comprehensive income. The amended guidance
requires an entity to present components of net income and other
comprehensive income in one continuous statement, referred to as the
statement of comprehensive income, or in two separate, but consecutive
statements. The previous option to report other comprehensive income
and its components in the statement of shareholders equity was
eliminated. Although the new guidance changes the presentation of
comprehensive income, there are no changes to the components that
are recognized in net income or other comprehensive income under
existing guidance. Beginning with the quarter ended April 30, 2012,
the Company elected to report other comprehensive income and its
components in a separate statement of comprehensive income. The
adoption of these ASUs did not impact the Companys consolidated
net income, financial position or cash flows.
In 2011, the FASB issued ASU 2011-04 to clarify the intent of the application
of existing fair value measurement and disclosure requirements, as
well as change certain measurement requirements and disclosures. The
Company adopted ASU 2011-04 effective February 1, 2012. In connection
with the adoption, the Company made an accounting policy election
to measure the credit risk of its derivative financial instruments that are
subject to master netting agreements on a net basis by counterparty
portfolio, consistent with how the Company previously had been
measuring credit risk for these instruments. The adoption of ASU 2011-04
did not impact the Companys consolidated net income, financial
position or cash flows.
|| 39
2 Net Income Per Common Share
3 Shareholders Equity
Basic income per common share from continuing operations attributable

to Walmart is based on the weighted-average common shares outstanding
during the relevant period. Diluted income per common share from
continuing operations attributable to Walmart is based on the weightedaverage common shares outstanding during the relevant period
adjusted for the dilutive effect of outstanding stock options and other
share-based awards. The Company had approximately 37 thousand,
1 million and 4 million stock options and other share-based awards
outstanding that were antidilutive and not included in the calculation
of diluted income per common share from continuing operations
attributable to Walmart for fiscal 2013, 2012 and 2011, respectively.
Share-Based Compensation
The following table provides a reconciliation of the numerators and

denominators used to determine basic and diluted income per common
share from continuing operations attributable to Walmart:
(Amounts in millions, except per share data)
Numerator
Less consolidated net income
attributable to noncontrolling
interest
attributable to Walmart
2013
(757)
||
(688)
(604)
$16,999 $15,766 $15,355
Weighted-average common shares

outstanding, diluted
40
2011
$17,756 $16,454 $15,959
Denominator
Weighted-average common shares
outstanding, basic
Dilutive impact of stock options
and other share-based awards
Income per common share

from continuing operations
attributable to Walmart
Basic
Diluted
2012
3,374
3,460
3,656
15
14
14
3,389
3,474
3,670
5.04 $ 4.56 $ 4.20

5.02
4.54
4.18
The Company has awarded share-based compensation to associates

and nonemployee directors of the Company. The compensation expense
recognized for all plans was $378 million, $355 million and $371 million
for fiscal 2013, 2012 and 2011, respectively. Share-based compensation
expense is included in operating, selling, general and administrative
expenses in the Companys Consolidated Statements of Income. The
total income tax benefit recognized for share-based compensation was
$142 million, $134 million and $141 million for fiscal 2013, 2012 and 2011,
respectively. The following table summarizes the Companys share-based
compensation expense by award type:
2013
2012
2011
Restricted stock and performance

share awards
Restricted stock rights
Stock options
$152
195
31
$142
184
29
$162
157
52
Share-based compensation
expense
$378
$355
$371
The Companys shareholder-approved Stock Incentive Plan of 2010

(the Plan) became effective June 4, 2010 and amended and restated
the Companys Stock Incentive Plan of 2005. The Plan was established
to grant stock options, restricted (non-vested) stock, performance shares
and other equity compensation awards for which 210 million shares of
common stock issued or to be issued under the Plan have been registered
under the Securities Act of 1933, as amended. The Company believes
that such awards serve to align the interests of its associates with those
of its shareholders.
The Plans award types are summarized as follows:
Restricted Stock and Performance Share Awards. Restricted stock awards are
for shares that vest based on the passage of time and include restrictions
related to employment. Performance share awards vest based on the
passage of time and achievement of performance criteria and may range
from 0% to 150% of the original award amount. Vesting periods for these
awards are generally between three and five years. Restricted stock and
performance share awards may be settled or deferred in stock and are
accounted for as equity in the Companys Consolidated Balance Sheets.
The fair value of restricted stock awards is determined on the date of
grant and is expensed ratably over the vesting period.The fair value of
performance share awards is determined on the date of grant using
the Companys stock price discounted for the expected dividend yield
through the vesting period and is recognized over the vesting period.

Restricted Stock Rights. Restricted stock rights provide rights to
Company stock after a specified service period; 50% vest three years
from the grant date and the remaining 50% vest five years from the
grant date. The fair value of each restricted stock right is determined on
the date of grant using the stock price discounted for the expected
dividend yield through the vesting period and is recognized ratably
over the vesting period. The expected dividend yield is based on the
anticipated dividends over the vesting period. The weighted-average
discount for the dividend yield used to determine the fair value of
restricted stock rights granted in fiscal 2013, 2012 and 2011 was 12.2%,
11.7% and 9.1%, respectively.
Stock Options. Stock options allow the associate to buy a specified
number of shares at a set price. Options granted generally vest over
five years and have a contractual term of ten years. Options may include
restrictions related to employment, satisfaction of performance conditions or other conditions. Under the Plan and prior plans, substantially
all stock options have been granted with an exercise price equal to the
market price of the Companys stock at the date of grant.
In addition to the Plan, the Companys subsidiary in the United Kingdom,

ASDA, has two other stock option plans for certain ASDA colleagues.
A combined 49 million shares of the Companys common stock were
registered under the Securities Act of 1933, as amended, for issuance
upon the exercise of stock options granted under the Colleague Share
Ownership Plan 1999 (the CSOP) and the ASDA Sharesave Plan 2000
(Sharesave Plan).
CSOP. The CSOP grants have either a three- or six-year vesting
period. The CSOP options may be exercised during the two months
immediately following the vesting date.
Sharesave Plan. The Sharesave Plan grants options at 80% of the
Companys average stock price for the three days preceding the grant
date. The Sharesave Plan options vest after three years and may
generally be exercised up to six months after the vesting date.
The following table shows the activity for each award type during fiscal 2013:
Restricted Stock and
Performance Share Awards
Stock Options(1)
Restricted Stock Rights
(Shares in thousands)
Shares
Weighted-Average
Grant-Date
Fair Value
Per Share
Shares
Weighted-Average
Grant-Date
Fair Value
Per Share
Shares
Weighted-Average
Exercise Price
Per Share
Outstanding at February 1, 2012

Granted
Vested/exercised
Forfeited or expired
13,320
4,488
(2,982)
(2,228)
$ 53.56
62.13
50.95
52.73
17,621
5,262
(3,714)
(1,330)
$ 47.76
53.27
45.35
48.37
20,152
2,082
(10,701)
(1,293)
$ 48.21
47.39
48.12
52.56
Outstanding at January 31, 2013
12,598
$57.37
17,839
$49.79
10,240
$47.58
5,326
$50.00
Exercisable at January 31, 2013

(1) Includes stock option awards granted under the Plan, the CSOP and the Sharesave Plan.
As of January 31, 2013, the unrecognized compensation cost for

restricted stock and performance share awards, restricted stock rights
and stock option awards was $233 million, $437 million and $21 million,
respectively, and is expected to be recognized over a weighted-average
period of 2.0 years, 1.7 years and 2.8 years, respectively. Additionally, as of
January 31, 2013, the weighted-average remaining life for stock options
outstanding and stock options exercisable was 5.3 years and 2.7 years,
respectively, and had an aggregate intrinsic value of $229 million and
$106 million, respectively.
The following table includes additional information related to restricted

stock and performance share awards and restricted stock rights:
2013
2012
2011
Fair value of restricted stock and

performance share awards vested
Fair value of restricted stock rights vested
$155
168
$134
178
$142
50
The following table includes additional information related to stock

option awards:
2013
2012
2011
Fair value of stock options vested

Proceeds from stock options exercised
Intrinsic value of stock options exercised
$ 33
320
207
$ 50
420
91
$ 54
205
51
|| 41

The fair value of each stock option award is estimated on the date of
grant using the Black-Scholes-Merton option valuation model that uses
various assumptions for inputs. The Company uses expected volatilities
and risk-free interest rates that correlate with the expected term of the
option when estimating an options fair value. The following table provides
the weighted-average assumptions used to estimate the fair values of
the Companys stock options granted in fiscal 2013, 2012 and 2011:
2013
(1)
Dividend yield
Volatility (2)
Risk-free interest rate (3)
Expected life in years (4)
Weighted-average fair value
of options granted
2.8%
16.2%
0.6%
3.0
$10.57
2012
2011
2.9%
17.6%
1.3%
3.0
$9.61
Share Repurchase Program

From time to time, the Company repurchases shares of its common stock
under share repurchase programs authorized by the Board of Directors.
The current $15.0 billion share repurchase program has no expiration
date or other restrictions limiting the period over which the Company
can make share repurchases under the program. At January 31, 2013,
authorization for $3.7 billion of share repurchases remained under the
current share repurchase program. Any repurchased shares are
constructively retired and returned to an unissued status.
The Company considers several factors in determining when to execute
share repurchases, including, among other things, current cash needs,
capacity for leverage, cost of borrowings and the market price of its
common stock. Cash paid for share repurchases during fiscal 2013, 2012
and 2011, was as follows:
2.3%
17.1%
1.8%
3.1
$12.53
Total
Number
of Shares
Repurchased
(in millions)
(1) Expected dividend yield is based on the anticipated dividends over the
vesting period.
(2) Expected volatility is based on historical volatility of the Companys stock.
Share Repurchases
(3) Risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant.

(4) Expected life in years is based on historical exercise and expiration activity of grants
with similar vesting periods.
113.2
115.3
279.1
Average
Price Paid
Total
per Share Investment
(in dollars) (in billions)
$67.15
54.64
53.03
$ 7.6
6.3
14.8
4 Accumulated Other Comprehensive Income (Loss)

The following table provides the changes in the composition of total Walmart accumulated other comprehensive income (loss) for fiscal 2013, 2012
and 2011:
Currency Translation
and Other
Derivative
Instruments
Minimum
Pension Liability
Balances as of February 1, 2010

Other comprehensive income (loss)
$ 348
878
$ 77
(17)
$ (495)
(145)

1,226
(2,032)
60
(67)
(640)
43
646
(2,056)
(806)
853
(7)
136
(597)
(166)
(1,410)
823
47
$129
$(763)
$ (587)

Total
(70)
716
Amounts included in accumulated other comprehensive income (loss) are recorded net of their related income tax effects. The Companys unrealized
net gains and losses on net investment hedges, included in the currency translation and other category of accumulated other comprehensive income
(loss), were not significant as of January 31, 2013 and January 31, 2012.
42
||
5 Accrued Liabilities
The Companys accrued liabilities consist of the following:
As of January 31,
Accrued wages and benefits

Self-insurance (2)
Accrued taxes (3)
Other (4)
(1)
Total accrued liabilities
2013
2012
$ 5,059
3,373
2,851
7,525
$ 5,089
3,638
2,323
7,130
$18,808
$18,180
(1) Accrued wages and benets include accrued wages, salaries, vacation, bonuses and other incentive plans.
(2) Self-insurance consists of all insurance-related liabilities, such as workers compensation, general liability, vehicle liability, property liability and employee-related health care benets.
(3) Accrued taxes include accrued payroll, value added, sales and miscellaneous other taxes.
(4) Other accrued liabilities consist of various items such as maintenance, utilities, advertising and interest.
6 Short-term Borrowings and Long-term Debt

Short-term borrowings consist of commercial paper and lines of credit. Short-term borrowings outstanding at January 31, 2013 and 2012, were $6.8 billion
and $4.0 billion, respectively. The following table includes additional information related to the Companys short-term borrowings for fiscal 2013,
2012 and 2011:
Maximum amount outstanding at any month-end

Average daily short-term borrowings
2013
2012
2011
$8,740
6,007
0.1%
$9,594
6,040
0.1%
$9,282
4,020
0.2%
The Company has various lines of credit, committed with 27 financial institutions, totaling $18.1 billion as of January 31, 2013. The lines of credit,
including drawn and undrawn amounts, are summarized in the following table:
2013
Available
Drawn
2012
Undrawn
Available
Drawn
Undrawn
Five-year credit facility (1)

364-day revolving credit facility (2)
Stand-by letters of credit (3)
$ 6,258
10,000
1,871
1,868
$ 6,258
10,000
3
$ 6,258
10,000
2,225
2,178
$ 6,258
10,000
47
Total
$18,129
$1,868
$16,261
$18,483
$2,178
$16,305
(1) In June 2011, the Company renewed and extended its existing ve-year credit facility, which is used to support its commercial paper program.
(2) In June 2012, the Company renewed and extended its existing 364-day revolving credit facility, which is used to support its commercial paper program.
(3) In June 2012, the Company renewed the stand-by letters of credit, which are used to support various potential and actual obligations.
The committed lines of credit mature at various times between June 2013 and June 2016, carry interest rates generally ranging between LIBOR plus
10 basis points and LIBOR plus 75 basis points, and incur commitment fees ranging between 1.5 and 10.0 basis points. In conjunction with the lines
of credit listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to maximum amounts
of secured debt and long-term leases.
Additionally, the Company had trade letters of credit outstanding totaling $2.7 billion and $2.9 billion at January 31, 2013 and 2012, respectively.
|| 43

The Companys long-term debt, which includes the fair value instruments further discussed in Note 8, consists of the following:
January 31, 2013
January 31, 2012
Maturity Dates
By Fiscal Year
Amount
Average
Rate (1)
Amount
Average
Rate (1)
Unsecured debt
Fixed
Variable
20142042
2014
$32,476
500
4.6%
5.5%
$33,128
500
4.6%
5.2%
Total U.S. dollar denominated

Fixed
Variable
32,976
2030
1,358
Total Euro denominated

Fixed
Variable
Total Yen denominated

Total unsecured debt
Total other debt (in USD) (2)
4.9%
1,358
20312039
5,550
Total Sterling denominated

Fixed
Variable
33,628
1,308
1,308
5.3%
5,550
6,301
1,942
1,056
20142042
2,998
42,882
1,099
3,606
44,843
1,202
43,981
(5,587)
46,045
(1,975)
$38,394
$44,070
Long-term debt
5.3%
6,301
20142021
20142016
Total debt
Less amounts due within one year
4.9%
1.4%
0.7%
2,335
1,271
1.4%
0.8%
(1) The average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end local currency interest rates.
Interest costs are also impacted by certain derivative nancial instruments described in Note 8.
(2) A portion of other debt at January 31, 2013 and 2012, includes secured debt in the amount of $627 million and $319 million, respectively, which was collateralized by property
that had an aggregate carrying amount of approximately $599 million and $866 million, respectively.
At January 31, 2013 and 2012, the Company had $500 million in debt with
embedded put options. The issuance of money market puttable reset
securities in the amount of $500 million is structured to be remarketed in
connection with the annual reset of the interest rate. If, for any reason,
the remarketing of the notes does not occur at the time of any interest
rate reset, the holders of the notes must sell, and the Company must
repurchase, the notes at par. Accordingly, this issuance has been classified
as long-term debt due within one year in the Companys Consolidated
Balance Sheets. Annual maturities of long-term debt during the next
five years and thereafter are as follows:
Fiscal Year
Annual
Maturity
2014
2015
2016
2017
2018
Thereafter
$ 5,587
3,753
4,562
1,127
1,128
27,824
Total
44
||
$43,981
Debt Issuances
The Company did not issue any significant amounts of long-term
debt during fiscal 2013. Information on significant long-term debt issued
during fiscal 2012, is as follows (amounts in millions):
Issue Date
Maturity Date
Interest Rate
Principal Amount
April 18, 2011

April 18, 2011
April 18, 2011
April 18, 2011
April 15, 2014

April 15, 2016
April 15, 2021
April 15, 2041
1.625%
2.800%
4.250%
5.625%
$1,000
1,000
1,000
2,000
Total
$5,000
The aggregate net proceeds from these note issuances were

approximately $4.9 billion. The notes of each series require semi-annual
interest payments on April 15 and October 15 of each year, with the first
interest payment having commenced on October 15, 2011. Unless
previously purchased and canceled, the Company will repay the notes
of each series at 100% of the principal amount, together with accrued
and unpaid interest thereon, at maturity. The notes of each series are
senior, unsecured obligations of the Company.
7 Fair Value Measurements

The Company records and discloses certain financial and non-financial assets and liabilities at their fair value. The fair value of an asset is the price
at which the asset could be sold in an ordinary transaction between unrelated, knowledgeable and willing parties able to engage in the transaction.
A liabilitys fair value is defined as the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties,
not the amount that would be paid to settle the liability with the creditor. Assets and liabilities recorded at fair value are measured using the fair value
hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
Level 1: observable inputs such as quoted prices in active markets;
Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.
Recurring Fair Value Measurements
The Company holds derivative instruments that are required to be measured at fair value on a recurring basis. The fair values are the estimated
amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have
been measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward curves.
As of January 31, 2013 and 2012, the notional amounts and fair values of these derivatives are as follows:
January 31, 2013
Receive fixed-rate, pay variable-rate interest rate swaps designated

as fair value hedges
Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps
designated as net investment hedges
Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps
designated as cash flow hedges
Receive variable-rate, pay fixed-rate interest rate swaps designated
as cash flow hedges
Receive variable-rate, pay fixed-rate forward starting interest rate swaps
designated as cash flow hedges
Total
January 31, 2012
Notional Amount Fair Value Notional Amount
Fair Value
$ 3,445
$ 60
$3,945
$183
1,250
223
1,250
316
2,944
230
2,884
(3)
1,056
(8)
1,270
(16)
5,000
10
$13,695
$515
$9,349
$480
Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Companys assets and liabilities are also subject to
nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges.
The Company did not record any significant impairment charges to assets measured at fair value on a nonrecurring basis during the fiscal years
ended January 31, 2013 or 2012.
Other Fair Value Disclosures
The Company records cash and cash equivalents and short-term borrowings at cost. The carrying values of these instruments approximate their
fair value due to their short-term maturities.
The Companys long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the Companys current incremental
borrowing rate for similar types of borrowing arrangements. The carrying value and fair value of the Companys long-term debt as of January 31, 2013
and January 31, 2012, are as follows:
January 31, 2013
Long-term debt, including amounts due within one year
January 31, 2012
Carrying Value
Fair Value
Carrying Value
Fair Value
$43,981
$50,664
$46,045
$53,043
|| 45
8 Derivative Financial Instruments

The Company uses derivative financial instruments for hedging and
non-trading purposes to manage its exposure to changes in interest and
currency exchange rates, as well as to maintain an appropriate mix of
fixed- and variable-rate debt. Use of derivative financial instruments in
hedging programs subjects the Company to certain risks, such as market
and credit risks. Market risk represents the possibility that the value of the
derivative financial instrument will change. In a hedging relationship, the
change in the value of the derivative financial instrument is offset to a
great extent by the change in the value of the underlying hedged item.
Credit risk related to a derivative financial instrument represents the
possibility that the counterparty will not fulfill the terms of the contract. The
notional, or contractual, amount of the Companys derivative financial
instruments is used to measure interest to be paid or received and does
not represent the Companys exposure due to credit risk. Credit risk is
monitored through established approval procedures, including setting
concentration limits by counterparty, reviewing credit ratings and requiring collateral (generally cash) from the counterparty when appropriate.
The Company only enters into derivative transactions with counterparties
rated A- or better by nationally recognized credit rating agencies.
Subsequent to entering into derivative transactions, the Company
regularly monitors the credit ratings of its counterparties. In connection
with various derivative agreements, including master netting arrangements,
the Company held cash collateral from counterparties of $413 million
and $387 million at January 31, 2013 and January 31, 2012, respectively.
The Company records cash collateral received as amounts due to the
counterparties exclusive of any derivative asset. Furthermore, as part of the
master netting arrangements with these counterparties, the Company
is also required to post collateral if the Companys net derivative liability
position exceeds $150 million with any counterparty. The Company did not
have any cash collateral posted with counterparties at January 31, 2013 or
January 31, 2012. The Company records cash collateral paid as amounts
receivable from the counterparties exclusive of any derivative liability.
The Company uses derivative financial instruments for the purpose of
hedging its exposure to interest and currency exchange rate risks and,
accordingly, the contractual terms of a hedged instrument closely mirror
those of the hedged item, providing a high degree of risk reduction and
correlation. Contracts that are effective at meeting the risk reduction and
correlation criteria are recorded using hedge accounting. If a derivative
financial instrument is recorded using hedge accounting, depending on
the nature of the hedge, changes in the fair value of the instrument will
either be offset against the change in fair value of the hedged assets,
liabilities or firm commitments through earnings or be recognized in
accumulated other comprehensive income (loss) until the hedged item
is recognized in earnings. Any hedge ineffectiveness is immediately
recognized in earnings. The Companys net investment and cash flow
instruments are highly effective hedges and the ineffective portion has
not been, and is not expected to be, significant. Instruments that do not
meet the criteria for hedge accounting, or contracts for which the
Company has not elected hedge accounting, are recorded at fair value
with unrealized gains or losses reported in earnings during the period
of the change.
Fair Value Instruments
The Company is a party to receive fixed-rate, pay variable-rate interest
rate swaps that the Company uses to hedge the fair value of fixed-rate
debt. The notional amounts are used to measure interest to be paid or
46
||
received and do not represent the Companys exposure due to credit

loss. The Companys interest rate swaps that receive fixed-interest rate
payments and pay variable-interest rate payments are designated as
fair value hedges. As the specific terms and notional amounts of the
derivative instruments match those of the fixed-rate debt being hedged,
the derivative instruments are assumed to be perfectly effective hedges.
Changes in the fair values of these derivative instruments are recorded
in earnings, but are offset by corresponding changes in the fair values of
the hedged items and, accordingly, do not impact the Companys
Consolidated Statements of Income. These fair value instruments will
mature on dates ranging from April 2013 to May 2014.
Net Investment Instruments
The Company is a party to cross-currency interest rate swaps that
the Company uses to hedge its net investments, as well as its currency
exchange rate fluctuation exposure associated with the forecasted
payments of principal and interest of non-U.S. denominated debt. The
agreements are contracts to exchange fixed-rate payments in one
currency for fixed-rate payments in another currency. All changes in
the fair value of these instruments are recorded in accumulated other
comprehensive income (loss), offsetting the currency translation adjustment of the related investment that is also recorded in accumulated
other comprehensive income (loss). These instruments will mature on
dates ranging from October 2023 to February 2030.
The Company has issued foreign-currency-denominated long-term debt
as hedges of net investments of certain of its foreign operations. These
foreign-currency-denominated long-term debt issuances are designated
and qualify as nonderivative hedging instruments. Accordingly, the
foreign currency translation of these debt instruments is recorded in
accumulated other comprehensive income (loss), offsetting the foreign
currency translation adjustment of the related net investments that is
also recorded in accumulated other comprehensive income (loss). At
January 31, 2013 and January 31, 2012, the Company had 2.5 billion and
3.0 billion, respectively, of outstanding long-term debt designated as a
hedge of its net investment in the United Kingdom, as well as outstanding long-term debt of 275 billion at January 31, 2013 and January 31,
2012, that was designated as a hedge of its net investment in Japan.
These nonderivative hedging instruments will mature on dates ranging
from August 2013 to January 2039.
Cash Flow Instruments
The Company is a party to receive variable-rate, pay fixed-rate interest
rate swaps that the Company uses to hedge the interest rate risk of certain
non-U.S. denominated debt. The swaps are designated as cash flow
hedges of interest expense risk. Amounts reported in accumulated other
comprehensive income (loss) related to these derivatives are reclassified
from accumulated other comprehensive income (loss) to earnings as
interest payments are made on the Companys variable-rate debt,
converting the variable-rate interest expense into fixed-rate interest
expense. These cash flow instruments will mature on dates ranging from
August 2013 to July 2015.
The Company is also a party to receive fixed-rate, pay fixed-rate crosscurrency interest rate swaps to hedge the currency exposure associated
with the forecasted payments of principal and interest of certain nonU.S. denominated debt. The swaps are designated as cash flow hedges
of the currency risk related to payments on the non-U.S. denominated
debt. The effective portion of changes in the fair value of derivatives
designated as cash flow hedges of foreign exchange risk is recorded in

accumulated other comprehensive income (loss) and is subsequently
reclassified into earnings in the period that the hedged forecasted
transaction affects earnings. The hedged items are recognized foreign
currency-denominated liabilities that are remeasured at spot exchange
rates each period, and the assessment of effectiveness (and measurement of any ineffectiveness) is based on total changes in the related
derivatives cash flows. As a result, the amount reclassified into earnings
each period includes an amount that offsets the related transaction gain
or loss arising from that remeasurement and the adjustment to earnings
for the periods allocable portion of the initial spot-forward difference
associated with the hedging instrument. These cash flow instruments
will mature on dates ranging from September 2029 to March 2034.
The Company also uses forward starting receive variable-rate, pay fixedrate interest rate swaps to hedge its exposure to the variability in future
cash flows due to changes in the LIBOR swap rate for U.S.-denominated
10- and 30-year debt issuances forecasted to occur in the future.
Amounts reported in accumulated other comprehensive income (loss)
related to these derivatives will be reclassified from accumulated other
comprehensive income (loss) to earnings as interest payments are made
on the forecasted hedged fixed-rate debt, adjusting interest expense to
reflect the fixed-rate locked in by the forward starting swaps. These cash
flow instruments hedge forecasted interest payments over a maximum
period of 32 years. These forward starting swaps will be terminated on
the day the hedged forecasted debt issuances occur, but no later than
October 31, 2014, if the hedged forecasted debt issuances do not occur.
Financial Statement Presentation

Derivative instruments with an unrealized gain are recorded in the Companys Consolidated Balance Sheets as either a current or a non-current asset,
based on maturity date, and those hedging instruments with an unrealized loss are recorded as either a current or a non-current liability, based on
maturity date.
The Companys derivative instruments, as well as its nonderivative debt instruments designated and qualifying as hedging instruments,
were classified as follows in the Companys Consolidated Balance Sheets:
January 31, 2013
Fair Value
Instruments
Net Investment
Instruments
January 31, 2012

Cash Flow
Instruments
Fair Value
Instruments
Net Investment
Instruments
Cash Flow
Instruments
Derivative instruments
$29
31
223
$
327
$ 2
181
316
$
91
Derivative asset subtotals
$60
$ 223
$327
$183
$ 316
$ 91
4
91
$
110
Derivative liability subtotals
$ 95
$110
Nonderivative hedging instruments

Long-term debt due within one year
Long-term debt
$ 818
6,145
$ 785
7,546
$6,963
$8,331
Accrued liabilities
Nonderivative hedge
liability subtotals
Gains and losses related to the Companys derivatives primarily relate to interest rate hedges, which are included in interest, net, in the Companys
Consolidated Statements of Income. Amounts reclassified from accumulated other comprehensive income (loss) to net income for the fiscal years
ending January 31, 2013 and 2012, as well as the amounts expected to be reclassified from accumulated other comprehensive income (loss) to net
income during the next 12 months, are not significant.
|| 47
9 Taxes
Income from Continuing Operations
The components of income from continuing operations before income
taxes are as follows:
Fiscal Years Ended January31,
2013
2012
2011
U.S.
Non-U.S.
$19,352 $18,685 $18,398

6,385
5,713
5,140
Total income from continuing

operations before income taxes
$25,737 $24,398 $23,538
A summary of the provision for income taxes is as follows:

Fiscal Years Ended January31,
2013
2012
2011
$5,611
622
1,766
$4,596
743
1,403
$4,600
637
1,466
7,999
6,742
6,703
Deferred:
U.S. federal
U.S. state and local
International
38
(8)
(48)
1,444
57
(299)
818
39
19
Total deferred tax expense (benefit)
(18)
1,202
876
$7,981
$7,944
$7,579
Current:
U.S. federal
U.S. state and local
International
Total current tax provision
Total provision for income taxes
Effective Income Tax Rate Reconciliation

The Companys effective income tax rate is typically lower than the U.S.
statutory tax rate primarily because of benefits from lower-taxed global
operations, including the use of global funding structures and certain
U.S. tax credits. The Companys non-U.S. income is generally subject to
local country tax rates that are below the 35% U.S. statutory tax rate.
Certain non-U.S. earnings have been indefinitely reinvested outside
the U.S. and are not subject to current U.S. income tax. A reconciliation
of the significant differences between the U.S. statutory tax rate and the
effective income tax rate on pretax income from continuing operations
is as follows:
48
||
2013
2012
2011
U.S. statutory tax rate

U.S. state income taxes, net of
federal income tax benefit
Income taxed outside the U.S.
Net impact of repatriated
international earnings
Other, net
35.0%
35.0%
35.0%
1.7%
(2.6)%
2.0%
(2.8)%
1.9%
(2.2)%
(2.5)%
(0.6)%
(0.3)%
(1.3)%
(1.5)%
(1.0)%
Effective income tax rate
31.0%
32.6%
32.2%
Deferred Taxes
The significant components of the Companys deferred tax account
balances are as follows:
January 31,
2013
2012
$ 3,525
2,683
204
1,500
$ 2,996
2,949
376
1,029
Total deferred tax assets

Valuation allowance
7,912
(2,225)
7,350
(2,528)
Deferred tax assets, net of valuation allowance
5,687
4,822
Deferred tax liabilities:

Inventories
Other
5,830
1,912
1,157
5,891
1,627
409
Deferred tax assets:

Loss and tax credit carryforwards
Accrued liabilities
Share-based compensation
Other
Total deferred tax liabilities

Net deferred tax liabilities
8,899
7,927
$ 3,212
$ 3,105
The deferred taxes are classified as follows in the Companys

Consolidated Balance Sheets:
January 31,
2013
2012
$ 520
757
$ 815
738
1,277
1,553
116
4,373
41
4,617
Liability subtotals
4,489
4,658
Net deferred tax liabilities
$3,212
$3,105
Balance Sheet classification:

Assets:
Asset subtotals
Liabilities:
Accrued liabilities
Unremitted Earnings
United States income taxes have not been provided on accumulated but
undistributed earnings of the Companys international subsidiaries of
approximately $19.2 billion and $19.7 billion as of January 31, 2013 and
2012, respectively, as the Company intends to permanently reinvest
these amounts outside of the United States. However, if any portion were
to be distributed, the related U.S. tax liability may be reduced by foreign
income taxes paid on those earnings. Determination of the unrecognized deferred tax liability related to these undistributed earnings is not
practicable because of the complexities with its hypothetical calculation.
The Company provides deferred or current income taxes on earnings of
international subsidiaries in the period that the Company determines it
will remit those earnings.

Net Operating Losses, Tax Credit Carryforwards
and Valuation Allowances
At January 31, 2013, the Company had net operating loss and capital loss
carryforwards totaling approximately $5.5 billion. Of these carryforwards,
approximately $3.2 billion will expire, if not utilized, in various years
through 2023. The remaining carryforwards have no expiration. At
January 31, 2013, the Company had foreign tax credit carryforwards of
$1.7 billion, which will expire in various years through 2023, if not utilized.
As of January 31, 2013 and 2012, the Company had a valuation allowance
recorded of approximately $2.2 billion and $2.5 billion, respectively,
on deferred tax assets associated primarily with net operating loss
carryforwards for which management has determined it is more likely
than not that the deferred tax asset will not be realized. The $0.3 billion
net decrease in the valuation allowance during fiscal 2013 related to
releases arising from the use of net operating loss and capital loss
carryforwards, increases from certain net operating losses arising in
fiscal 2013, decreases due to operating and capital loss expirations and
fluctuations in currency exchange rates. Management believes that it is
more likely than not that the remaining net deferred tax assets will be
fully realized.
The recoverability of these future tax deductions and credits is evaluated
by assessing the adequacy of future expected taxable income from
all sources, including taxable income in prior carryback years, reversal
of taxable temporary differences, forecasted operating earnings and
available tax planning strategies. To the extent management does not
consider it more likely than not that a deferred tax asset will be realized,
a valuation allowance is established. To the extent that a valuation
allowance has been established and management subsequently
determines that it is more likely than not that the deferred tax assets
will be realized, the valuation allowance is released.
Uncertain Tax Positions
The benefits of uncertain tax positions are recorded in the Companys
Consolidated Financial Statements only after determining a more-likelythan-not probability that the uncertain tax positions will withstand
challenge, if any, from taxing authorities.
As of January 31, 2013 and 2012, the amount of unrecognized tax benefits
related to continuing operations was $818 million and $611 million,
respectively. The amount of unrecognized tax benefits that would affect
the Companys effective income tax rate is $741 million and $520 million
for January 31, 2013 and 2012, respectively.
A reconciliation of unrecognized tax benefits from continuing operations

is as follows:
Unrecognized tax benefits,

beginning of year
Increases related to prior year
tax positions
Decreases related to prior year
tax positions
Increases related to current year
tax positions
Settlements during the period
Lapse in statutes of limitations
Unrecognized tax benefits,
end of year
2013
2012
2011
$ 611
$ 795
$1,019
88
87
101
(232)
(162)
(61)
431
(80)
56
(161)
(4)
199
(453)
(10)
$ 818
$ 611
$ 795
The Company classifies interest and penalties related to uncertain tax

benefits as interest expense and as operating, selling, general and
administrative expenses, respectively. During fiscal 2013, 2012 and 2011,
the Company recognized interest and penalty expense (benefit) related
to uncertain tax positions of $2 million, $(19) million and $45 million,
respectively. As of January 31, 2013 and 2012, accrued interest related to
uncertain tax positions of $139 million and $166 million, respectively,
were recorded in the Companys Consolidated Balance Sheets. The
Company did not have any accrued penalties recorded as of January 31,
2013 or 2012.
During the next twelve months, it is reasonably possible that tax
audit resolutions could reduce unrecognized tax benefits by between
$165 million and $210 million, either because the tax positions are sustained on audit or because the Company agrees to their disallowance.
The Company is focused on resolving tax audits as expeditiously as
possible. As a result of these efforts, unrecognized tax benefits could
potentially be reduced beyond the provided range during the next
twelve months. The Company does not expect any change to have a
significant impact to its Consolidated Financial Statements.
The Company remains subject to income tax examinations for its
U.S. federal income taxes generally for fiscal 2011 through 2013.
The Company also remains subject to income tax examinations for
international income taxes for fiscal 2005 through 2013, and for
U.S. state and local income taxes generally for fiscal 2006 through 2013.
Other Taxes
The Company is subject to tax examinations for payroll, value added,
sales-based and other non-income taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments
from the taxing authorities. Where appropriate, the Company has made
accruals for these matters, which are reflected in the Companys
Consolidated Financial Statements. While these matters are individually
immaterial, a group of related matters, if decided adversely to the
Company, may result in a liability material to the Companys Consolidated
Financial Statements.
|| 49
10 Contingencies
Legal Proceedings
The Company is involved in a number of legal proceedings. The
Company has made accruals with respect to these matters, where
appropriate, which are reflected in the Companys Consolidated Financial
Statements. For some matters, a liability is not probable or the amount
cannot be reasonably estimated and therefore an accrual has not been
made. However, where a liability is reasonably possible and material, such
matters have been disclosed. The Company may enter into discussions
regarding settlement of these matters, and may enter into settlement
agreements, if it believes settlement is in the best interest of the Companys
shareholders. Unless stated otherwise, the matters, or groups of related
matters, discussed below, if decided adversely to or settled by the
Company, individually or in the aggregate, may result in a liability material
to the Companys financial condition or results of operations.
Wage-and-Hour Class Action: The Company is a defendant in
Braun/Hummel v. Wal-Mart Stores, Inc., a class action lawsuit commenced in
March 2002 in the Court of Common Pleas in Philadelphia, Pennsylvania.
The plaintiffs allege that the Company failed to pay class members for all
hours worked and prevented class members from taking their full meal
and rest breaks. On October 13, 2006, a jury awarded back-pay damages
to the plaintiffs of approximately $78 million on their claims for offthe-clock work and missed rest breaks. The jury found in favor of the
Company on the plaintiffs meal-period claims. On November 14, 2007,
the trial judge entered a final judgment in the approximate amount of
$188 million, which included the jurys back-pay award plus statutory
penalties, prejudgment interest and attorneys fees. By operation of law,
post-judgment interest accrues on the judgment amount at the rate of
six percent per annum from the date of entry of the judgment, which
was November 14, 2007, until the judgment is paid, unless the judgment
is set aside on appeal. On December 7, 2007, the Company filed its Notice
of Appeal. The Company filed its opening appellate brief on February 17,
2009, plaintiffs filed their response brief on April 20, 2009, and the
Company filed its reply brief on June 5, 2009. Oral argument was held
before the Pennsylvania Superior Court of Appeals on August 19, 2009.
On June 10, 2011, the court issued an opinion upholding the trial courts
certification of the class, the jurys back pay award, and the awards of
statutory penalties and prejudgment interest, but reversing the award of
attorneys fees. On September 9, 2011, the Company filed a Petition for
Allowance of Appeal with the Pennsylvania Supreme Court. On July 2,
2012, the Pennsylvania Supreme Court granted the Companys Petition.
The Company served its opening brief in the Pennsylvania Supreme
Court on October 22, 2012, plaintiffs served their response brief on January
22, 2013, and the Company served its reply on February 28, 2013. A date
for oral argument has not been scheduled by the Pennsylvania Supreme
Court. The Company believes it has substantial factual and legal defenses
to the claims at issue, and plans to continue pursuing appellate review.
50
||
Gender Discrimination Class Actions: The Company is a defendant

in Dukes v. Wal-Mart Stores, Inc., which was commenced as a class-action
lawsuit in June 2001 in the United States District Court for the Northern
District of California, asserting that the Company had engaged in a
pattern and practice of discriminating against women in promotions,
pay, training, and job assignments, and seeking, among other things,
injunctive relief, front pay, back pay, punitive damages, and attorneys
fees. On June 21, 2004, the district court issued an order granting in part
and denying in part the plaintiffs motion for class certification. As
defined by the district court, the class included [a]ll women employed at
any Wal-Mart domestic retail store at any time since December 26, 1998,
who have been or may be subjected to Wal-Marts challenged pay and
management track promotions policies and practices. The Company
appealed the order to the Ninth Circuit Court of Appeals and subsequently
to the United States Supreme Court. On June 20, 2011, the Supreme
Court issued an opinion decertifying the class and remanding the case
to the district court. On October 27, 2011, the plaintiffs attorneys filed an
amended complaint proposing a class of current and former female
associates at the Companys California retail facilities, and the Company
filed a motion to dismiss on January 13, 2012. On September 21, 2012,
the court denied the motion. Under the current scheduling order, the
plaintiffs are required to file their motion for class certification on or
before April 11, 2013.
On October 28, 2011, the attorneys for the plaintiffs in the Dukes case
filed a similar complaint in the United States District Court for the
Northern District of Texas entitled Odle v. Wal-Mart Stores, Inc., proposing
a class of current and former female associates employed in any Walmart
region that includes stores located in the state of Texas. On October 15,
2012, the court in the Odle case granted the Companys motion to dismiss,
dismissing with prejudice the plaintiffs class-action allegations and the
individual claims of the lead plaintiff, Stephanie Odle. On October 2,
2012, the plaintiffs attorneys filed another similar complaint in the
United States District Court for the Middle District of Tennessee entitled
Phipps v. Wal-Mart Stores, Inc., proposing a class of current and former
female associates employed in Region 43, centered in Middle and
Western Tennessee. On February 20, 2013, the court in the Phipps case
granted the Companys motion to dismiss, and dismissed the plaintiffs
class action allegations with prejudice. On October 4, 2012, the plaintiffs
attorneys filed another similar complaint in the United States District
Court for the Southern District of Florida, entitled Love v. Wal-Mart Stores,
Inc., proposing a class of current and former female associates employed
in certain designated stores and clubs in regions centered in the state of
Florida. On October 25, 2012, the Company filed a motion to dismiss the
Florida complaint. Finally, on February 20, 2013, the plaintiffs attorneys
filed another similar complaint in the United States District Court for
the Western District of Wisconsin, entitled Ladik v. Wal-Mart Stores, Inc.,
proposing a class of current and former female associates employed in
Region 14, which includes Wal-Mart retail stores located in parts of
Wisconsin, Illinois, Indiana and Michigan. On March 15, 2013, the Company
filed its motion to dismiss the Wisconsin complaint. Management does
not believe any possible loss or the range of any possible loss that may
be incurred in connection with these matters will be material to the
Companys financial condition or results of operations.

Hazardous Materials Investigations: On November 8, 2005, the
Company received a grand jury subpoena from the United States
Attorneys Office for the Central District of California, seeking documents
and information relating to the Companys receipt, transportation,
handling, identification, recycling, treatment, storage and disposal of
certain merchandise that constitutes hazardous materials or hazardous
waste. The Company has been informed by the U.S. Attorneys Office for
the Central District of California that it is a target of a criminal investigation
into potential violations of the Resource Conservation and Recovery
Act (the RCRA), the Clean Water Act and the Hazardous Materials
Transportation Statute. This U.S. Attorneys Office contends, among other
things, that the use of Company trucks to transport certain returned
merchandise from the Companys stores to its return centers is prohibited
by RCRA because those materials may be considered hazardous waste.
The government alleges that, to comply with RCRA, the Company must
ship from the store certain materials as hazardous waste directly to a
certified disposal facility using a certified hazardous waste carrier. The
U.S. Attorneys Office in the Northern District of California and the U.S.
Environmental Protection Agency subsequently joined in this investigation. The Company contends that the practice of transporting returned
merchandise to its return centers for subsequent disposition, including
disposal by certified facilities, is compliant with applicable laws and
regulations. Management does not believe any possible loss or the
range of any possible loss that may be incurred in connection with these
matters will be material to the Companys financial condition or results
of operations.
FCPA Investigation and Related Matters
The Audit Committee (the Audit Committee) of the Board of Directors
of the Company, which is composed solely of independent directors, is
conducting an internal investigation into, among other things, alleged
violations of the U.S. Foreign Corrupt Practices Act (FCPA) and other
alleged crimes or misconduct in connection with foreign subsidiaries,
including Wal-Mart de Mxico, S.A.B. de C.V. (Walmex), and whether
prior allegations of such violations and/or misconduct were appropriately handled by the Company. The Audit Committee and the Company
have engaged outside counsel from a number of law firms and other
advisors who are assisting in the on-going investigation of these matters.
The Company is also conducting a voluntary global review of its policies,
practices and internal controls for FCPA compliance. The Company
is engaged in strengthening its global anti-corruption compliance
programs through appropriate remedial anti-corruption measures. In
November 2011, the Company voluntarily disclosed that investigative
activity to the U.S. Department of Justice (the DOJ) and the Securities
and Exchange Commission (the SEC). Since the implementation of the
global review and the enhanced anti-corruption compliance programs,
the Audit Committee and the Company have identified or been made
aware of additional allegations regarding potential violations of the
FCPA. When such allegations are reported or identified, the Audit
Committee and the Company, together with their third party advisors,
conduct inquiries and when warranted based on those inquiries, open
investigations. Inquiries or investigations regarding allegations of
potential FCPA violations have been commenced in a number of foreign
markets where the Company operates, including, but not limited to,
Brazil, China and India.
The Company has been informed by the DOJ and the SEC that it is also
the subject of their respective investigations into possible violations of
the FCPA. The Company is cooperating with the investigations by the
DOJ and the SEC. A number of federal and local government agencies in
Mexico have also initiated investigations of these matters. Walmex is
cooperating with the Mexican governmental agencies conducting these
investigations. Furthermore, lawsuits relating to the matters under
investigation have been filed by several of the Companys shareholders
against it, certain of its current directors, certain of its former directors,
certain of its current and former officers and certain of Walmexs current
and former officers.
The Company could be exposed to a variety of negative consequences
as a result of the matters noted above. There could be one or more
enforcement actions in respect of the matters that are the subject of
some or all of the on-going government investigations, and such actions, if
brought, may result in judgments, settlements, fines, penalties, injunctions,
cease and desist orders, debarment or other relief, criminal convictions
and/or penalties. The shareholder lawsuits may result in judgments
against the Company and its current and former directors and officers
named in those proceedings. The Company cannot predict at this time the
outcome or impact of the government investigations, the shareholder
lawsuits, or its own internal investigations and review. In addition, the
Company expects to incur costs in responding to requests for information
or subpoenas seeking documents, testimony and other information in
connection with the government investigations, in defending the
shareholder lawsuits, and in conducting the review and investigations.
These costs will be expensed as incurred. The Company incurred
expenses of approximately $157 million during fiscal 2013 related to
these matters. These matters may require the involvement of certain
members of the Companys senior management that could impinge on
the time they have available to devote to other matters relating to the
business. The Company expects that there will be on-going media and
governmental interest, including additional news articles from media
publications on these matters, which could impact the perception
among certain audiences of the Companys role as a corporate citizen.
The Companys process of assessing and responding to the governmental
investigations and the shareholder lawsuits continues. While the Company
believes that it is probable that it will incur a loss from these matters,
given the on-going nature and complexity of the review, inquiries and
investigations, the Company cannot reasonably estimate any loss or
range of loss that may arise from these matters. Although the Company
does not presently believe that these matters will have a material
adverse effect on its business, given the inherent uncertainties in such
situations, the Company can provide no assurance that these matters will
not be material to its business in the future.
|| 51
11 Commitments
The Company and certain of its subsidiaries have long-term leases for
stores and equipment. Rentals (including amounts applicable to taxes,
insurance, maintenance, other operating expenses and contingent
rentals) under operating leases and other short-term rental arrangements
were $2.6 billion, $2.4 billion and $2.0 billion in fiscal 2013, 2012 and
2011, respectively.
Aggregate minimum annual rentals at January 31, 2013, under
non-cancelable leases are as follows:
Fiscal Year
Operating
Leases
Capital
Leases
2014
2015
2016
2017
2018
Thereafter
$ 1,722
1,598
1,480
1,384
1,246
9,373
$ 620
584
535
490
449
3,590
Total minimum rentals

Less estimated executory costs
$16,803
$6,268
55
Net minimum lease payments

Less imputed interest
Present value of minimum lease payments
6,213
2,863
$3,350
Certain of the Companys leases provide for the payment of contingent

rentals based on a percentage of sales. Such contingent rentals were
immaterial for fiscal 2013, 2012 and 2011. Substantially all of the Companys
store leases have renewal options, some of which may trigger an
escalation in rentals.
The Company has future lease commitments for land and buildings for
approximately 366 future locations. These lease commitments have
lease terms ranging from 4 to 50 years and provide for certain minimum
rentals. If executed, payments under operating leases would increase by
$82 million for fiscal 2014, based on current cost estimates.
In connection with certain long-term debt issuances, the Company
could be liable for early termination payments if certain unlikely events
were to occur. At January 31, 2013, the aggregate termination payment
would have been $104 million. The arrangements pursuant to which
these payments could be made expire in fiscal 2019.
12 Retirement-Related Benefits
Through fiscal 2011, the Company maintained separate profit sharing
and 401(k) plans for associates in the United States and Puerto Rico,
under which associates generally became participants following one
year of employment. The profit sharing component was entirely funded
by the Company, and the Company also made additional contributions
to the 401(k) component of the plan. In addition to the Companys
contributions, associates could elect to contribute a percentage of their
earnings to the 401(k) component of the plan.
52
||
Effective February 1, 2011, the Company terminated the previous profit

sharing and 401(k) plans and offered new safe harbor 401(k) plans for
associates in the United States and Puerto Rico, under which associates
generally become participants following one year of employment.
Under the safe harbor 401(k) plans, the Company matches 100% of
participant contributions up to 6% of annual eligible earnings. The
matching contributions immediately vest at 100% for each associate.
Participants can contribute up to 50% of their pretax earnings, but not
more than the statutory limits. Participants age 50 or older may defer
additional earnings in catch-up contributions up to the maximum
statutory limits.
Employees in international countries who are not U.S. citizens are
covered by various defined contribution post-employment benefit
arrangements. These plans are administered based upon the legislative
and tax requirements in the countries in which they are established.
Additionally, the Companys subsidiaries in the United Kingdom (ASDA)
and Japan have defined benefit pension plans. The plan in the United
Kingdom was underfunded by $346 million and $339 million at January 31,
2013 and 2012, respectively. The plan in Japan was underfunded by
$338 million and $325 million at January 31, 2013 and 2012, respectively.
These underfunded amounts are recorded as liabilities in the Companys
Consolidated Balance Sheets in deferred income taxes and other. Certain
other international operations also have defined benefit arrangements
that are not significant.
In fiscal 2012, ASDA and the trustees of ASDAs defined benefit plan
agreed to remove future benefit 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 fiscal 2012 to the plan participants. The
related curtailment gain of approximately $90 million was recorded
in fiscal 2012 as a decrease to deferred actuarial losses in other
comprehensive income.
The following table summarizes the contribution expense related to the
Companys retirement-related benefits for fiscal 2013, 2012 and 2011:
Defined contribution plans:

U.S.
International
Defined benefit plans:
International
Total contribution expense for
retirement-related benefits
2013
2012
2011
$ 818
166
$ 752
230
$1,098
75
26
54
146
$1,010
$1,036
$1,319
13 Acquisitions
Certain acquisitions completed during fiscal 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 fiscal 2013,
the Company completed its acquisition of the remaining equity interest
in BCL for an additional payment of approximately $101 million.
Disposals
During the fourth quarter of fiscal 2011, the Company settled with the
Internal Revenue Service a matter related to a worthless stock deduction
from the final 2007 disposition of its German operations. This resulted
in a $1.0 billion tax benefit recorded in discontinued operations in the
Companys Consolidated Statement of Income. In addition, during
fiscal 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 flows related to the Companys
discontinued operations were not significant during fiscal 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:
Massmart Holdings Limited (Massmart): In June 2011, the Company

completed a tender offer for approximately 51% ownership in Massmart,
a South African retailer with approximately 290 stores throughout
sub-Saharan Africa. The final 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 Massmarts results in the quarter ended
October 31, 2011.
2013
2012
2011
Germany
Seiyu
$(67)
$1,041
(7)
Income (loss) from discontinued

operations, net of income taxes
$(67)
$1,034
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 final 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 Nettos results in
the quarter ended July 31, 2011.
Each of these acquisitions is consolidated as part of the Walmart
International segment. In addition, during fiscal 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 fiscal 2013 acquisitions
were significant, individually or in the aggregate, to the Companys
Consolidated Financial Statements.
|| 53
14 Segments
The Company is engaged in the operations of retail stores located in the U.S., Africa, Argentina, Brazil, Canada, Central America, Chile, China, India,
Japan, Mexico, and the United Kingdom. The Companys operations are conducted in three reportable business segments: Walmart U.S., Walmart
International and Sams Club. The Company defines its segments as those business units whose operating 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 revenue for each of these individual products and services.
The Walmart U.S. segment includes the Companys mass merchant concept in the U.S., operating under the Walmart or Wal-Mart brand, as
well as walmart.com. The Walmart International segment consists of the Companys operations outside of the U.S., including various retail websites.
The Sams Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com. Other unallocated consists of corporate
overhead and other items not allocated to any of the Companys segments.
The Company measures the results of its segments using, among other measures, each segments net sales and operating income, which includes
certain corporate overhead allocations. From time to time, the Company revises the measurement of each segments operating income, including
any corporate overhead allocations, as dictated 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 periods presentation. Information for the Companys segments,
as well as the reconciliation to income from continuing operations before income taxes, is in the following table:
Fiscal Year Ended January 31, 2013

Net sales
Operating income (loss)
Interest expense, net
Walmart U.S.
Walmart
International
SamsClub
$274,490
21,500
$135,201
6,694
$56,423
1,963
Other
Unallocated
(2,356)

Total assets
Capital expenditures
$ 96,234
4,586
5,994
$ 85,695
2,628
4,640
$13,479
617
868
$ 7,697
670
1,396
$203,105
8,501
12,898

Net sales
$ 264,186
20,391
$ 125,873
6,182
$ 53,795
1,848
$ 443,854
26,558
(2,160)
(1,863)
$ 24,398
Total assets
$ 93,143
4,557
6,226
$ 81,289
2,438
5,274
$ 12,824
595
823
$ 6,150
540
1,187
$ 193,406
8,130
13,510

Net sales
$ 260,261
19,941
$ 109,232
5,575
$ 49,459
1,695
$ 418,952
25,542
(2,004)
(1,669)

Total assets
||
$466,114
27,801
(2,064)
$ 25,737
54
Consolidated
$ 23,538
$ 90,166
4,605
7,328
$ 71,172
2,195
3,994
$ 12,536
601
711
$ 6,908
240
666
$ 180,782
7,641
12,699

Total revenues, consisting of net sales and membership and other
income, and long-lived assets, consisting primarily of property and
equipment, net, aggregated by the Companys U.S. and non-U.S.
operations for fiscal 2013, 2012 and 2011, are as follows:
Total revenues
U.S. operations
Non-U.S. operations
Total revenues
Long-lived assets
U.S. operations
Non-U.S. operations
Total long-lived assets
2013
2012
2011
$332,844
136,318
$319,800
127,150
$311,591
110,258
$469,162
$446,950
$421,849
$ 77,692
38,989
$ 75,881
36,443
$ 73,592
34,286
$116,681
$112,324
$107,878
15 Subsequent Event
Dividends Declared
On February 21, 2013, the Board of Directors approved an increase in
the annual dividend for fiscal 2014 to $1.88 per share, an increase of
approximately 18% over the $1.59 per share dividend paid in fiscal 2013.
For fiscal 2014, the annual dividend will be paid in four quarterly
installments of $0.47 per share, according to the following record and
payable dates:
Record Date
Payable Date
March 12, 2013

May 10, 2013
August 9, 2013
December 6, 2013
April 1, 2013
June 3, 2013
September 3, 2013
January 2, 2014
No individual country outside of the U.S. had total revenues or longlived assets that were material to the consolidated totals. Additionally,
the Company did not generate material total revenues from any
single customer.
16 Quarterly Financial Data (Unaudited)

(Amounts in millions except per share data)
Total revenues
Net sales
Cost of sales
Q1
$113,018
112,272
85,186
3,894
3,894
3,742
1.10
1.09
Q2
$114,296
113,534
85,657
4,161
4,161
4,016
1.19
1.18
Q3
Q4
$113,929
113,204
85,517
3,825
3,825
3,635
1.08
1.08
$127,919
127,104
96,128
5,876
5,876
5,606
1.68
1.67
Total
$469,162
466,114
352,488
17,756
17,756
16,999
5.04
5.02

Q1
Total revenues
Net sales
Cost of sales
$ 104,189
103,415
78,177
3,578
3,550
3,399
0.97
0.97
Q2
$ 109,366
108,638
81,770
3,937
3,937
3,801
1.09
1.09
Q3
Q4
$ 110,226
109,516
82,591
3,501
3,493
3,336
0.97
0.96
$ 123,169
122,285
92,589
5,438
5,407
5,163
1.51
1.50
Total
$ 446,950
443,854
335,127
16,454
16,387
15,699
4.54
4.52
The sum of per share data may not agree to annual amounts due to rounding.
|| 55
Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders
of Wal-Mart Stores, Inc.
We have audited the accompanying consolidated balance sheets of
Wal-Mart Stores, Inc. as of January 31, 2013 and 2012, and the related
consolidated statements of income, comprehensive income, shareholders
equity, and cash flows for each of the three years in the period ended
January 31, 2013. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,

in all material respects, the consolidated financial position of Wal-Mart
Stores, Inc. at January 31, 2013 and 2012, and the consolidated results of
its operations and its cash flows for each of the three years in the period
ended January 31, 2013, in conformity with U.S. generally accepted
accounting principles.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), Wal-Mart Stores,
Inc.s internal control over financial reporting as of January 31, 2013,
based on criteria established in Internal Control-Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated March 26, 2013 expressed an
unqualified opinion thereon.
Rogers, Arkansas
March 26, 2013
56
||
Report of Independent Registered Public Accounting Firm

on Internal Control Over Financial Reporting
The Board of Directors and Shareholders of Wal-Mart Stores, Inc.
We have audited Wal-Mart Stores, Inc.s internal control over financial
reporting as of January 31, 2013, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (the COSO criteria). Wal-Mart
Stores, Inc.s management is responsible for maintaining effective internal
control over financial reporting, and for its assessment of the effectiveness
of internal control over financial reporting included in the accompanying
Managements Report to Our Shareholders. Our responsibility is to
express an opinion on the Companys internal control over financial
reporting based on our audit.
We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether effective internal control over financial reporting was
maintained in all material respects. Our audit included obtaining an
understanding of internal control over financial reporting, assessing the
risk that a material weakness exists, testing and evaluating the design
and operating effectiveness of internal control based on the assessed
risk, and performing such other procedures as we considered necessary
in the circumstances. We believe that our audit provides a reasonable
basis for our opinion.
A companys internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles. A companys internal control over financial reporting includes
those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the companys assets that could have a
material effect on the financial statements.
Because of its inherent limitations, internal control over financial

reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures
may deteriorate.
As indicated in the accompanying Managements Report to Our
Shareholders, managements assessment of and conclusion on the
effectiveness of internal control over financial reporting did not include
the internal controls of Newheight Holdings Ltd, a company that owns
Yihaodian (collectively, Yihaodian), an e-commerce business in China,
which is included in the 2013 consolidated financial statements of
Wal-Mart Stores, Inc. and constituted 0.8% and 0.0% of the Companys
consolidated total assets and consolidated net sales, respectively, as of
and for the year ended January 31, 2013. Our audit of internal control
over financial reporting of Wal-Mart Stores, Inc. also did not include an
evaluation of the internal control over financial reporting of Yihaodian.
In our opinion, Wal-Mart Stores, Inc. maintained, in all material respects,
effective internal control over financial reporting as of January 31, 2013,
based on the COSO criteria.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the consolidated
balance sheets of Wal-Mart Stores, Inc. as of January 31, 2013 and 2012,
and related consolidated statements of income, comprehensive income,
shareholders equity and cash flows for each of the three years in the
period ended January 31, 2013 and our report dated March 26, 2013
expressed an unqualified opinion thereon.
Rogers, Arkansas
March 26, 2013
|| 57
Managements Report to Our Shareholders

Management of Wal-Mart Stores, Inc. (Walmart, the company or we)
is responsible for the preparation, integrity and objectivity of Walmarts
Consolidated Financial Statements and other financial information contained in this Annual Report to Shareholders. Those Consolidated Financial
Statements were prepared in conformity with accounting principles
generally accepted in the United States. In preparing those Consolidated
Financial Statements, management was required to make certain estimates
and judgments, which are based upon currently available information
and managements view of current conditions and circumstances.
The Audit Committee of the Board of Directors, which consists solely
of independent directors, oversees our process of reporting financial
information and the audit of our Consolidated Financial Statements. The
Audit Committee stays informed of the financial condition of Walmart
and regularly reviews managements financial policies and procedures,
the independence of our independent auditors, our internal control over
financial reporting and the objectivity of our financial reporting. Both the
independent auditors and the internal auditors have free access to the
Audit Committee and meet with the Audit Committee periodically, both
with and without management present.
Acting through our Audit Committee, we have retained Ernst & Young LLP,
an independent registered public accounting firm, to audit our
Consolidated Financial Statements found in this Annual Report to
Shareholders. We have made available to Ernst & Young LLP all of our
financial records and related data in connection with their audit of our
Consolidated Financial Statements. We have filed with the Securities and
Exchange Commission (SEC) the required certifications related to our
Consolidated Financial Statements as of and for the year ended January 31,
2013. These certifications are attached as exhibits to our Annual Report
on Form 10-K for the year ended January 31, 2013. Additionally, we have
also provided to the New York Stock Exchange the required annual
certification of our Chief Executive Officer regarding our compliance with
the New York Stock Exchanges corporate governance listing standards.
Report on Internal Control Over Financial Reporting

Management has responsibility for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial
reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial
statements for external reporting purposes in accordance with accounting
principles generally accepted in the United States. Because of its inherent
limitations, internal control over financial reporting may not prevent or
detect misstatements. Management has assessed the effectiveness of
the Companys internal control over financial reporting as of January 31,
2013. In making its assessment, management has utilized the criteria
set forth by the Committee of Sponsoring Organizations (COSO) of
the Treadway Commission in Internal Control-Integrated Framework.
Management concluded that based on its assessment, Walmarts internal
control over financial reporting was effective as of January 31, 2013. The
Companys internal control over financial reporting as of January 31, 2013,
has been audited by Ernst & Young LLP as stated in their report which
appears in this Annual Report to Shareholders.
Under guidelines established by the SEC, companies are allowed to
exclude acquisitions from their first assessment of internal control over
financial reporting following the date of acquisition. Based on those
guidelines, managements assessment of the effectiveness of the
Companys internal control over financial reporting excluded
58
||
Newheight Holdings Ltd, a holding company that owns Yihaodian

(collectively, Yihaodian), an e-commerce business in China, of which
the Company purchased a controlling interest in fiscal 2013. Yihaodian
represented 0.8% and 0.0% of the Companys consolidated total assets
and consolidated net sales, respectively, as of and for the year ended
January 31, 2013. The Companys acquisitions are discussed in Note 13
to its Consolidated Financial Statements for fiscal 2013.
Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to provide
reasonable assurance that information required to be timely disclosed is
accumulated and communicated to management in a timely fashion.
Management has assessed the effectiveness of these disclosure controls
and procedures as of January 31, 2013, and determined they were effective
as of that date to provide reasonable assurance that information required
to be disclosed by us in the reports we file or submit under the Securities
Exchange Act of 1934, as amended, was accumulated and communicated
to management, as appropriate, to allow timely decisions regarding
required disclosure and were effective to provide reasonable assurance
that such information is recorded, processed, summarized and reported
within the time periods specified by the SECs rules and forms.
Report on Ethical Standards

Our Company was founded on the belief that open communications
and the highest standards of ethics are necessary to be successful. Our
long-standing Open Door communication policy helps management
be aware of and address issues in a timely and effective manner. Through
the open door policy all associates are encouraged to inform management at the appropriate level when they are concerned about any
matter pertaining to Walmart.
Walmart has adopted a Statement of Ethics to guide our associates in the
continued observance of high ethical standards such as honesty, integrity
and compliance with the law in the conduct of Walmarts business.
Familiarity and compliance with the Statement of Ethics is required of all
associates who are part of management. The Company also maintains
a separate Code of Ethics for our senior financial officers. Walmart also
has in place a Related-Party Transaction Policy. This policy applies to
Walmarts senior officers and directors and requires material relatedparty transactions to be reviewed by the Audit Committee. The senior
officers and directors are required to report material related-party
transactions to Walmart. We maintain a global ethics office which oversees
and administers an ethics helpline. The ethics helpline provides a channel
for associates to make confidential and anonymous complaints regarding
potential violations of our statements of ethics, including violations
related to financial or accounting matters.
Michael T. Duke

Executive Vice President and Chief Financial Officer
Fiscal 2013 Unit Count

United States
The Walmart U.S. and Sams Club segments comprise the Companys
operations in the United States. As of January 31, 2013, unit counts for
Walmart U.S. and Sams Club are summarized by format for each state
or territory as follows:
Walmart U.S.
State or Territory
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Puerto Rico
U.S. Total
Sams Club
44
38
75
10
11
12
10
27
3,158
561
286
3
5
12
2
11
61
43
100
12
55
620 4,625
International
Supercenters
Discount
Stores
Neighborhood
Markets and
other small
formats
Clubs
Grand
Total
93
7
75
71
98
65
6
6
197
139
20
123
92
55
54
76
81
17
25
15
82
58
61
107
12
32
30
14
18
34
70
131
11
132
77
22
105
5
78
13
108
327
39
99
4
2
3
10
97
5
27
3
20
3
9
1
29
9
4
5
8
4
5
22
32
9
7
4
12
1
2
13
39
2
28
9
1
12
9
9
28
4
2
30
4
6
19
16
22
8
37
5
6
3
9
7
6
1
4
11
18
6
6
45
5
13
3
15
7
33
15
3
1
45
23
2
1
29
16
8
8
9
14
3
12
2
26
13
7
17
2
4
7
4
10
7
16
22
3
29
9
23
9
2
16
75
8
16
116
12
112
104
250
93
36
10
299
170
11
22
187
120
67
76
100
105
25
59
49
117
78
73
140
15
36
50
31
67
46
114
171
15
173
113
37
156
9
87
15
132
477
52
4
123
The Walmart International segment comprises the Companys

operations outside of the United States and is represented in three major
brand categories. Unit counts (1) as of January 31, 2013 for Walmart
International are summarized by brand category for each geographic
market as follows:
Geographic Market
(3)
Retail
Wholesale
Other (2)
Total
Africa
Argentina
Brazil
Canada
Central America (4)
Chile
China
India (5)
Japan
Mexico
United Kingdom
279
94
461
379
640
327
385
372
1,840
564
98
86
8
20
142
11
66
371
1
377
94
558
379
642
329
393
20
438
2,353
565
International total
5,341
356
451
6,148
(1) Walmart International unit counts, with the exception of Canada, are stated
as of December 31, 2012, to correspond with the balance sheet date of the related
geographic market. Canada unit counts are stated as of January 31, 2013.
(2) Other includes restaurants, drugstores and convenience stores operating under
varying banners in Brazil, Chile, Japan, Mexico and the United Kingdom.
(3) Africa unit counts by country are Botswana (12), Ghana (1), Lesotho (3), Malawi (2),
Mozambique (17), Namibia (3), Nigeria (2), South Africa (333), Swaziland (1),
Tanzania (1), Uganda (1) and Zambia (1).
(4) Central America unit counts by country are Costa Rica (205), El Salvador (80),
Guatemala (206), Honduras (72) and Nicaragua (79).
(5) In India, the business is operated as a cash and carry business. Retail units in India
are franchised and are owned and operated by Bharti Retail.
|| 59
Corporate and Stock Information

Corporate information
Dividends payable per share
Stock Registrar and Transfer Agent:

Computershare Trust Company, N.A.
P.O. Box 43069
Providence, Rhode Island 02940-3069
1-800-438-6278
TDD for hearing-impaired inside the U.S. 1-800-952-9245
Internet: http://www.computershare.com
For fiscal 2014, dividends will be paid based on the following schedule:
April 1, 2013
$0.47
June 3, 2013
$0.47
September 3, 2013
$0.47
January 2, 2014
$0.47
Dividends paid per share

For fiscal 2013, dividends were paid based on the following schedule:
April 4, 2012
$0.3975
June 4, 2012
$0.3975
September 4, 2012
$0.3975
December 27, 2012
$0.3975
Listing
New York Stock Exchange
Stock Symbol: WMT
Annual meeting
Our Annual Meeting of Shareholders will be held on Friday, June 7, 2013,
at 7:00 a.m. (Central Time) in the Bud Walton Arena on the University of
Arkansas campus, Fayetteville, Arkansas.
Communication with shareholders

Wal-Mart Stores, Inc. periodically communicates with its shareholders
and other members of the investment community about our operations.
For further information regarding our policy on shareholder and investor
communications refer to our website www.stock.walmart.com.
The following reports are available without charge upon request by
writing the Company c/o Investor Relations or by calling (479) 273-8446.
These reports are also available via the corporate website.
Annual Report on Form 10-K
Quarterly Reports on Form 10-Q
Earnings Releases
Current Reports on Form 8-K
Copy of Annual Shareholders Meeting Proxy Statement
Global Responsibility Report
Diversity and Inclusion Report
Workforce Diversity Report
For fiscal 2012, dividends were paid based on the following schedule:
April 4, 2011
$0.365
June 6, 2011
$0.365
September 6, 2011
$0.365
January 3, 2012
$0.365
Stock Performance Chart

This graph compares the cumulative total shareholder return on
Walmarts common stock during the five fiscal years ending with fiscal
2013 to the cumulative total returns on the S&P 500 Retailing Index and
the S&P 500 Index. The comparison assumes $100 was invested on
February 1, 2008, in shares of our common stock and in each of the
indices shown and assumes that all of the dividends were reinvested.
Comparison of 5-Year Cumulative Total Return*
Among Wal-Mart Stores, Inc., the S&P 500 Index and S&P 500 Retailing Index
S&P 500 Index
S&P 500 Retailing Index
$180
$160
$100
$ 80
$ 60
Market price of common stock
$ 40
The high and low market price per share for the Companys
common stock in fiscal 2013 and 2012 were as follows:
2013
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
2008
2012
Low
High
Low
$62.63
75.24
77.60
75.16
$57.18
58.27
71.35
67.37
$56.73
56.47
57.96
62.00
$50.97
51.79
48.31
55.68
The high and low market price per share for the Companys
common stock for the first quarter of fiscal 2014, were as follows:
2014
1st Quarter
(1)
60
||
Through March 22, 2013.
2010
2011
2012
2013
Fiscal Years
High
(1)
2009
High
Low
$74.29
$68.13
*Assumes $100 Invested on February 1, 2008

Assumes Dividends Reinvested
Fiscal Year Ending January 31, 2013
Shareholders
As of March 22, 2013, there were 263,499 holders of record of Walmarts
common stock.
Designed and produced by Corporate Reports Inc./Atlanta
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5414 Pinnacle Point Dr., Suite 102
Rogers, AR 72758
www.corporatereport.com
$140
Independent registered public accounting firm
Walmarts investor
relations app:
our company at
your fingertips
Walmarts electronic
annual report has
expanded content
Walmarts IR app gives shareholders

anytime and anywhere access to
financial and company news from their
mobile device. Find presentations,
quarterly results and the stock price
on your iPad, iPhone or
Android device. Download
the free app here or from
iTunes or Google Play.
Were driving innovation and

sustainability and reducing costs
with our electronic annual report.
Visit www.stock.walmart.com to hear
directly from our leaders, associates,
customers and suppliers. Also, visit
this website to enroll to receive
future materials electronically for the
Annual Shareholders Meeting.
Our sustainable, next generation report.

The minimized environmental footprint of this report is the result of an extensive, collaborative effort of Walmart and its supply chain
partners. The environmental and social impact continues to be an important consideration. It is printed on paper from well-managed
forests containing recycled PCW fiber that is Elementally Chlorine Free (ECF). It is printed using 100 percent renewable wind power
(RECs), along with environmental manufacturing principles that were utilized in the printing process. These practices include
environmentally responsible procurement, lean manufacturing, green chemistry principles, the recycling of residual materials and
reduced volatile organic compound inks and coatings.
5.84 acre
1,121 fewer
trees consumed
via recycling
147,593 kWh
less energy the same

used by 6 homes for a year
NT
RI
GY
of greenhouse gas offset

the equivalent of taking
108 cars off the road for a year
53,835 kWh
converted to clean renewable

sources (printing plant
using RECs)
524,166 fewer
gallons of water
consumed
ED US
IN
10
538 metric tons
of forestland preserved
via managed forestry
IND EN
Savings baselines were developed using the national averages of similar coated papers
and printing practices by EarthColor Printing.
Supplied by Community Energy
Rainforest Alliance CertifiedTM

SmartWood Program Labeling Guidelines
4/10/13 2:05 PM
Our global mission in action
$1B
1M
$50B
cash and in-kind contributions

around the world from Walmart
and the Walmart Foundation
women to be provided with

training, market access
and career opportunities
additional sourcing of U.S.

manufactured products
over the next 10 years
163M
100K
180K
kilowatt hours generated

from renewables; now the
largest U.S. onsite green
power generator
honorably discharged
U.S. veterans Walmart is
projected to hire by 2018
U.S. store/club associates

promoted at Walmart and
Sams Club in fiscal 2013
For more information on our community leadership,

review our 2013 Global Responsibility Report at www.corporate.walmart.com/global-responsibility
Wal-Mart Stores, Inc. (NYSE: WMT)

702 S.W. 8th Street | Bentonville, Arkansas 72716 USA | 479-273-4000 | walmart.com
4/10/13 2:04 PM

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One mission:

2013 Annual Report

A history of delivering strong results

retail units operated

About the cover:

To learn more about

Many of Walmarts most innovative ideas originate from the

To our shareholders, associates and customers

repurchases. In fact, Walmart shareholders enjoyed the

Walmart 2013 Annual Report

At Walmart, were excited about the progress in our business

Were also applying this same discipline to capital expenditures.

Exceptional customer service is a key contributor to

every level of our organization. And were taking our model

One success is our new search engine for walmart.com,

More often, I see customers using a mobile phone to check

At Sams Club, exciting merchandise at great values drives

having the ability to connect every product in the world

Walmart 2013 Annual Report

have growing online businesses in 10 countries and are well

Every day our talented associates deliver the operational

by our increased investment in Yihaodian, which has

compliance are non-negotiable. Our standard is full compliance

Walmart 2013 Annual Report

Top: Grocery accounts for 55 percent of Walmart U.S. sales.

Walmart 2013 Annual Report

Everyday low prices

A global portfolio that

Top: Locally relevant formats like Mexicos Bodega

Building world-class compliance. We have built our business on a

Walmart 2013 Annual Report

Walmart 2013 Annual Report

Top: Sales of top brand apparel remain strong.

Walmart 2013 Annual Report

home needs, as well as grocery staples. Our health and

Innovations that enhance the shopping experience.

Walmart 2013 Annual Report

Delivering seamless access to customers

which is enabled by the new global technology platform that

Top: Our mobile apps make shopping fun for

Walmart 2013 Annual Report

Helping our customers and

To learn more about Walmarts responsibility initiatives to help people

Walmart 2013 Annual Report

Strong corporate governance

We are proud of our familys position as shareholders and pleased

Walmart 2013 Annual Report

2013 Board of Directors

14| Arne M. Sorenson

15| Jim C. Walton

10| Marissa A. Mayer

16| Christopher J. Williams

11| Gregory B. Penner

17| Linda S. Wolf

12| Steven S Reinemund

H. Lee Scott, Jr.

James I. Cash, Jr., Ph.D.(FE)

13| H. Lee Scott, Jr.

Walmart 2013 Annual Report