10-Q 1 walmart10q2q73106fiscal2007.htm WAL-MART STORES, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JULY 31, 2006 WAL-MART STORES, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JULY 31, 2006
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the quarterly period ended July 31, 2006.

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period from __________ to __________.

Commission file number 1-6991

WAL-MART STORES, INC.
(Exact name of registrant as specified in its charter)

Delaware
71-0415188
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
702 S.W. 8th Street
Bentonville, Arkansas
72716
(Address of principal executive offices)
(Zip Code)

(479) 273-4000
(Registrant’s telephone number, including area code)

Not applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesx No¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. (See definition of “accelerated filer and large accelerated filer” as defined in Rule 12b-2 of the Exchange Act). Check One:

Large Accelerated Filer x  Accelerated Filer མ  Non-Accelerated Filer ¨

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes¨ Nox

Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.
Common Stock, $.10 Par Value - 4,169,031,858 shares as of August 25, 2006.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

WAL-MART STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in millions except per share data)

   
Three Months Ended
July 31,
  
Six Months Ended 
July 31,
  
   
2006
  
2005
  
2006
  
2005
  
Revenues:
                          
Net sales
  
$
84,524
  
$
75,932
  
$
163,359
  
$
145,931
  
Other income, net
    
906
    
765
    
1,746
    
1,521
  
 
    
85,430
    
76,697
    
165,105
    
147,452
  
Costs and expenses:
                          
Cost of sales
    
64,585
    
58,089
    
124,822
    
111,942
  
Operating, selling, general and administrative expenses
    
15,741
    
13,878
    
30,683
    
26,788
  
Operating income
    
5,104
    
4,730
    
9,600
    
8,722
  
Interest:
                          
Debt
    
387
    
303
    
754
    
500
  
Capital leases
    
69
    
61
    
137
    
113
  
Interest income
    
(63
)
  
(58
)
  
(131
)
  
(108
)
Interest, net
    
393
    
306
    
760
    
505
  
Income from continuing operations before income taxes and minority interest
    
4,711
    
4,424
    
8,840
    
8,217
  
Provision for income taxes
    
1,636
    
1,503
    
3,025
    
2,716
  
Income from continuing operations before minority interest
    
3,075
    
2,921
    
5,815
    
5,501
  
Minority interest
    
(91
)
  
(68
)
  
(170
)
  
(136
)
Income from continuing operations
    
2,984
    
2,853
    
5,645
    
5,365
  
Discontinued operations
    
(901
)
  
(48
)
  
(947
)
  
(99
)
Net income
  
$
2,083
  
$
2,805
  
$
4,698
  
$
5,266
  
                           
Basic and diluted net income per common share:
                          
Basic and diluted income per share from continuing operations
  
$
0.72
  
$
0.68
  
$
1.35
  
$
1.28
  
Basic and diluted loss per share from discontinued operations
    
(0.22
)
  
(0.01
)
  
(0.22
)
  
(0.03
)
Basic and diluted net income per share
  
$
0.50
  
$
0.67
  
$
1.13
  
$
1.25
  
                           
Weighted-average number of common shares:
                          
Basic
    
4,168
    
4,175
    
4,167
    
4,201
  
Diluted
    
4,172
    
4,180
    
4,171
    
4,206
  
                           
Dividends declared per common share
    
—
    
—
  
$
0.67
  
$
0.60
  

See accompanying notes.

2

WAL-MART STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in millions)

   
July 31,
2006 
  
July 31,
2005 
  
January 31,
2006
  
ASSETS
              
Cash and cash equivalents
  
$
6,386
  
$
5,452
  
$
6,193
  
Receivables
    
2,522
    
1,596