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    Walmart Stores, Inc 2011

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    56 views14 pages

    Walmart Stores, Inc 2011

    Uploaded by

    indah
    Walmart Stores, Inc 2011

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 14
    Wal-Mart Stores, Inc. — 2009 Amit J. Shah and Michael L. Monahanat Frostburg State University WMT www.walmart.com Th May 2009, Wal-Mart began revamping the electronics departments in its 3,500 US. stores to rake them much more interactive and roomier. The company wants all the business that Circuit City’s failure left and also wants Best Buy and Amazon's business. Wal-Mart now carries more s o- phisticated electronics products such as Research in Motion Ltd's Blackberry smart phones, Palm Inc's Pre smart phone, and Blu-ray disc players. In June 2009, Wal-Mart began selling Dell Inc.'s new Studio One 19 touch-screen computers. In July 2009, Wal-Mart broke ranks with most other large corporations by announcing support jon that would require employers to provide health insurance to employees, a centerpiece nt Obama's effort to provide ne sal Coverage to Americans. As the largest private employer in the United States, Wal-Mart desires to level the playing field with its rival firms because it already provides health insurance to all its employees. The U.S. Chamber of Commerce has a tively fought against such legislation for several years. During the recession of 2008-2009, Wal-Mart was the Dow’s top performer. Headquartered in Bentonville, Arkansas, Wal-Mat’s sales rose from $374.3 billion in fiscal year 2008 to $401.2 billion in 2009 white net income rose from $12.7 billion to $13.4 billion. For more than a decade, ‘Wal-Mart has been growing by leaps and bounds and rolling over large competitors such as Kmart as well as thousands of small businesses. Financial statements are shown in Exhibit 1 and Exhibit 2. (Note: Wal-Mart's fiscal year ends Janvary 31.) In 1995, Wal-Mart ended a five-year battle with local leaders of Bennington, Vermont, and opened its first store in that state, thereby laying claim to having stores in all 50 states, (sce Exhibit 3). The Bennington store was Wal-Man’s 2,158th store, To get approval for this store, Wal-Mart abandoned its usual 200,000-square-foot store near a major highway exit and instead located in a downtown building containing just 50,000 square feet. Environmentalists in ‘Vermont say the rural character of the state is endangered by “sprawl-mart development.” Other chains, such as Kmart, have operated in Vermont for years, so some residents are mystified by the current controversy. As of the end of fiscal 2009, there only four Wal-Mart stores in Vermont. ‘Wal-Mart does not have a formal mission statement. When asked about Wal-Mart's lack of 1 mission, Public Relations Coordinator Kim Ellis recently replied, “We believe that our cus- tomers are most interested in other aspects of our business, and we are focused on meeting their basic consumer needs. If, in fact, we did have a formal mission statement, it would be something like this: “To provide quality products at an everyday low price and with extended customer ser- vice ... always.” Found on the company’s Website is a statement pertaining to the culture of ‘WalMart. “As Wal-Mart continues to grow into new areas and new mediums, our suc cess will always be atributed to our culture. Whether you walk into a Wal-Mart store in your hometown or one across the country while you're on vacation, you can always be as- sured you're getting low prices and genuine customer service that you've come to expect from us. You'll feel at home in any department of any store... that’s our culture.” The Wal: Mart culture is based on three basic beliefs of Sam Walton: 1) respect for the individual, 2) service to our customers, and 3) strive for excellence. _AMIT J, SHAH AND MICHAEL L, MONAHANAT Operating income Capital leases Interest income Interest, net Income from continuing operations before income taxes and minority interest Provision for Income Taxes: Current Deferred Income from continuing operations before minority interest ‘Minority interest Income from continuing operations Income (loss) from discontinued operations, net of tax Net income Net Income per. Common Share: Basic income per common share from continuing operations Basic income (loss) per common share from disontinued operations Basic net income per common share Diluted income per common share Diluted income (loss) per common share Diluted net income per common share Welghted Average Number of Common Shares: Basic Diluted Dividends declared per common share 306,158 76,651 22,798 1,896 288 (284.00) 1,900 20,898 6,564 581 7145) 13,753 (499) 13,254 146 13,400 3,939 3,951 EXHIBIT 1 Consolidated Statements of Income (amounts in millions except per share data) Fiscal Year Ended January 31 2008 $374,307 4,169 $378,476 286,350 70,174 21,952 1,863 (308.00) 1,794 20,159 6,897 6,889 13,269 (406) 12,863 (032) 12,731 S$ 316 0.03) $ 313 $316 (0.03) $313 4,066 4072 ‘CASE 24 * WAL-MART STORES, INC.—2009 235 \ce Sheets (amounts in millions ‘Cash and cash equivalents Receivables * Inventories Prepaid expenses and other (Carrent assets of discontinued operations ‘Total Current Assets Property and Equipment, at Cost: Land Buildings and improvements Fixtures and equipment ‘Transportation equipment Property and equipment, at cost ‘Less accumulated depreciation Property and equipment, net ‘Accrued liabilities ‘Accrued income taxes ‘Long-term debt due within one year Obligations under capital leases due ‘within one year Current liabilities of discontinued operations ‘Total current liabilities ‘Long-term debt ‘Long-term obligations under capital leases #2. 7 Deferred income taxes and other ‘Minority interest ‘Commitments and contingencies January 31 72009 2008, $ 7295 = $ $492 3,905 3,642 34511 35,159 3,063, 2,760 195 967 $ 48949 $48,020 19,852 19,879 73.810 72141 29,851 28,026 2,307 2.210 125,820 122,256 (32,964) (28,531) 92,856 93,725 5,341 5,736 — 2544) __(2,594) 2.797 3,142 15,260 15,879 3,567 2,748, $163,429 “$163,514 $ 1506 =$ 5,040 28,849 30,344 18,112 15,725 on 1,000 5,848 5,913, 315 316 83, 140 $ 55390 $58,478 31,349 29,799 3,200 3,603, 6.014 5,087 2191 1,939 continued 236 AMIT J, SHAH AND MICHAEL L. MONAHANAT End-of-Year Store Count Wal-Mart Stores, Inc. EXHIBIT 2 Consolidated Balance Sheets—continued Shareholders’ Equity: Preferred stock($0.10 par value; 100 shares authorized, none issued - - ‘Common stock ($0.10; 11,000 shares authorized, 3,925 and 3973 issued and outstanding at January 31, 2009, and January 31, 2008, respectively) 393 397 Capital in excess of par value Retained earnings Accumulated other comprehensive (loss) income ‘Total Shareholders’ Equity Total Liabilities and Shareholders’ Equity ‘Source: Wal-Mart, Annual Report (2009). eA eR BBO BBNOOAAAAZAZIY Grand Total state Discount Stores __Supercenters __Nelghborhood _Sam’s Clubs Markets ‘Alabama 6 90 5 3 14 ‘Alaska 4 4 - 3 u Arizona 9 a 2 16 109 ‘Arkansas 15 6 8 6 95 California 140 35 - 37 212 Colorado 9 56 - 16 aly Connecticut 29 5 - 3 a7 |, Delaware 4 5 - 1 10 |: Florida 39 161 25 2 267 | Georgia 7 126 = 2 iss |! Hawaii d 8 = - 2 0 |, Tdaho 3 16 = 2 ail) linois 7 0 - 29 176 | + Indiana 15 cy 3 16 MB fe Towa u 41 = 8 6 | Kansas 9 48 3 7 o |o Kentucky ul B 7 8 9 Louisiana 6 n 3 12 100 Maine 10 2 - 3 5 Maryland 31 3 - 2 6 ‘Massachusetts 39 1 - 3 49 Michigan 19 65 - 6 110 Minnesota 19 a - -erB a | Mississippi 5 39 1 6 ni Missouri 2 1 - 15 13 Montana, 3 10 - 1 4 | Nebraska - 30 - 3 3} Nevada 4 6 7 48 continued CASE 24 © WAL-MART STORES, INC.—2009 237 Store Count Wal-Mart Stores, Inc—

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