Walmart reports Q3 EPS of $1.08, reaffirms top end of full-year EPS guidance; Company is well positioned for Q4 holidays

  Walmart reports Q3 EPS of $1.08, reaffirms top end of full-year EPS
  guidance; Company is well positioned for Q4 holidays

Q3 Highlights:

  *Wal-Mart Stores, Inc. (Walmart) reported third quarter diluted earnings
    per share from continuing operations of $1.08, within guidance of $1.04 to
    $1.09. This was an 11.3 percent increase from the $0.97 per share reported
    for the third quarter last year.
  *The company updated its full year earnings guidance, narrowing the range
    by five cents to $4.88 to $4.93. The top of the range remains unchanged
    from the guidance provided last quarter, when the company tightened the
    range and increased it by a penny.
  *Net sales were $113.2 billion, a 3.4 percent increase over last year.
    Currency exchange rate fluctuations negatively impacted net sales by
    approximately $1.7 billion. Without the currency impact^1, net sales would
    have been $114.9 billion, a 4.9 percent increase.
  *Walmart U.S. comparable (“comp”) store sales increased 1.5 percent in the
    13-week period ended Oct. 26, 2012.
  *Sam’s Club comp sales, without fuel, increased 2.7 percent for the same
    13-week period.
  *Walmart International grew net sales 2.4 percent to $33.2 billion; on a
    constant currency^1 basis, net sales would have increased 7.6 percent to
    $34.8 billion.
  *The company leveraged operating expenses for the quarter.
  *Consolidated operating income was $6.1 billion, up 4.0 percent from last
    year, and grew faster than sales.
  *Walmart generated free cash flow^1 of $7.0 billion for the nine months
    ended Oct. 31, 2012.
  *Return on investment^1 (ROI) for the trailing 12 months ended Oct. 31,
    2012 was 18.0 percent.
  *Year to date, the company returned $8.7 billion to shareholders through
    dividends and share repurchases.

Business Wire

BENTONVILLE, Ark. -- November 15, 2012

Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the
quarter ended Oct. 31, 2012. Net sales for the third quarter of fiscal 2013
were $113.2 billion, an increase of 3.4 percent from $109.5 billion in the
third quarter last year. Net sales for this quarter included a negative
currency exchange rate impact of approximately $1.7 billion. Without the
currency impact, net sales would have been $114.9 billion. Membership and
other income increased 2.1 percent to $725 million. Total revenue was $113.9
billion, an increase of 3.4 percent from last year.

Income from continuing operations attributable to Walmart for the quarter was
$3.6 billion, up 8.7 percent from the third quarter last year. Diluted
earnings per share from continuing operations attributable to Walmart (EPS)
for the third quarter of fiscal 2013 were $1.08. By comparison, last year’s
reported EPS were $0.97.

The current quarter benefited from a 31.3 percent effective tax rate. This
benefit was mostly offset by approximately $105 million in pre-tax charges
which are included in operating expenses:

  *an approximate $69 million for changes in estimated contingent liabilities
    related to employment claims in Brazil; and
  *an approximate $36 million for damages from Superstorm Sandy, mainly in
    the Walmart U.S. business.

Solid earnings performance

“We’re very pleased with our financial performance for the third quarter and
the dedication and hard work of our associates serving Walmart customers and
communities around the world,” said Mike Duke, Wal-Mart Stores, Inc. president
and chief executive officer. “Earnings per share were $1.08, which represents
an 11.3 percent increase over the third quarter last year.”

The company leveraged operating expenses for the third quarter, delivering on
its commitment to reduce costs, improve productivity and invest in price.

“Our disciplined approach to operating the business and to the productivity
loop drove profitability and expense leverage,” said Duke. “Our fundamentals
are strong, and we are well-positioned for the fourth quarter, including
innovative plans to drive traffic, especially in our U.S. stores.

“Price will continue to be a major factor for U.S. customers over the
holidays. Our strong price position and broad assortment are clear competitive
advantages,” he explained. “Across all of our markets, we are seeing the same
price consciousness as we do in the United States. More customers are part of
a growing global middle class, looking for quality, value and a better life,
and our EDLP model matters to these customers.”

Duke also noted that the company continues to invest in e-commerce to build
the anywhere, anytime relationship that customers want.

“We made significant progress this quarter in enhancing our walmart.com site
for U.S. customers, and we are expanding e-commerce opportunities for shoppers
in our key markets, including China, the U.K. and Brazil,” said Duke. “We also
increased our position in China e-commerce retailer Yihaodian to 51 percent.”

Returns

Walmart delivered free cash flow of $7.0 billion for the nine months ended
Oct. 31, 2012, compared to $3.4 billion the previous year. Return on
investment (ROI) for the trailing 12 months ended Oct. 31, 2012 was 18.0
percent, compared to 18.2 percent for the same prior year period. The
company’s capital discipline benefitted ROI. However, this benefit was mostly
offset by currency exchange rate fluctuations.

“Despite current economic conditions, we continue to produce solid operating
results with strong cash flow from operations,” said Charles Holley, executive
vice president and chief financial officer. “The strength of our free cash
flow allows us to provide good returns to our shareholders through dividends
and share repurchases.”

Company updates full-year EPS guidance

“Current macroeconomic conditions continue to pressure our customers,” said
Holley. “The holiday season is predicted to be very competitive, but we are
well prepared to deliver on the value and low prices our customers expect.

“We consider the competitive retail environment and economic factors, among
others, when we provide guidance. Based on these considerations, we expect
fourth quarter fiscal 2013 diluted earnings per share from continuing
operations to range between $1.53 and $1.58. This compares to last year’s
fourth quarter reported EPS of $1.51, which benefitted $0.07 from certain
items,” said Holley. “Net of those items, earnings per share for last year’s
fourth quarter would have been $1.44.

“For the full year, we are tightening and reaffirming the top end of our
earnings per share guidance to a range of $4.88 to $4.93. This compares to our
previous guidance of $4.83 to $4.93,” Holley said. “Last year’s full-year EPS
was $4.54.”

Operating segment details and analysis

Net sales

Net sales, including fuel, were as follows (dollars in billions):

                Three Months Ended                      Nine Months Ended
                  October 31,                                 October 31,
                                          Percent                                 Percent
                  2012        2011        Change          2012        2011        Change
Net Sales:
Walmart U.S.      $ 66.127      $ 63.835      3.6  %          $ 199.825     $ 191.397     4.4  %
Walmart             33.159        32.383      2.4  %            97.252        90.387      7.6  %
International
Sam's Club         13.918     13.298    4.7  %           41.933     39.785    5.4  %
Total Company     $ 113.204     $ 109.516     3.4  %          $ 339.010     $ 321.569     5.4  %


The following explanations provide additional context to the above table for
the third quarter.

  *Constant currency consolidated net sales would have increased by 4.9
    percent to $114.9 billion during the third quarter.
  *Walmart International net sales, on a constant currency basis, would have
    increased 7.6 percent to $34.8 billion.
  *Sam’s Club net sales, excluding fuel, were $12.2 billion, an increase of
    3.6 percent from last year’s third quarter results.

Segment operating income

Segment operating income was as follows (dollars in billions):

                 Three Months Ended                  Nine Months Ended
                    October 31,                             October 31,
                                            Percent                                   Percent
                    2012      2011                      2012       2011      
                                            Change                                    Change
Segment
Operating                                                                    
Income:
Walmart U.S.        $ 4.844     $ 4.634     4.5   %         $ 15.128     $ 14.280     5.9   %
Walmart               1.455       1.389     4.8   %           4.258        3.885      9.6   %
International
Sam's Club            0.435       0.386     12.7  %           1.461        1.328      10.0  %
                                                                                      

The following explanations provide additional context to the above table for
the third quarter.

  *Consolidated operating income, which includes other unallocated, was $6.1
    billion, up 4.0 percent from last year. On a constant currency basis,
    consolidated operating income would have increased 4.5 percent.
  *All three segments grew operating income faster than sales, a company
    priority.
  *On a constant currency basis, Walmart International’s operating income
    would have increased 6.8 percent. Currency exchange rate fluctuations
    negatively impacted operating income by approximately $29 million.
  *Sam’s Club operating income, excluding fuel, increased 14.2 percent.

“We were pleased that our constant currency sales and operating income were
both up approximately 7 percent for the third quarter,” said Doug McMillon,
president and CEO of Walmart International. “We gained market share in almost
all of our markets, indicating that our underlying business is performing
well. We are working hard to improve execution where it’s needed, and we’re
ready with great merchandise and price investments for the fourth quarter.”

U.S. comparable store sales review and guidance

The company reported U.S. comparable store sales based on its 13-week and
39-week retail calendar periods ended Oct. 26, 2012 and Oct. 28, 2011, as
follows:

          Without Fuel              With Fuel                 Fuel Impact
            Thirteen Weeks Ended          Thirteen Weeks Ended          Thirteen Weeks Ended
            10/26/12   10/28/11         10/26/12   10/28/11         10/26/12   10/28/11
                                                                              
Walmart     1.5   %      1.3   %          1.5   %      1.3   %          0.0   %      0.0   %
U.S.
Sam's       2.7   %    5.7   %          3.8   %    9.0   %          1.1   %    3.3   %
Club
Total       1.7   %      1.9   %          1.9   %      2.6   %          0.2   %      0.7   %
U.S.
                                                                                     

          Without Fuel             With Fuel                Fuel Impact
            Thirty-Nine Weeks           Thirty-Nine Weeks           Thirty-Nine Weeks
            Ended                       Ended                       Ended
            10/26/12   10/28/11       10/26/12   10/28/11       10/26/12   10/28/11
                                                                          
Walmart     2.1   %      -0.3  %        2.1   %      -0.3  %        0.0   %      0.0   %
U.S.
Sam's       4.1   %    5.0   %        4.4   %    9.0   %        0.3   %    4.0   %
Club
Total       2.4   %      0.5   %        2.5   %      1.3   %        0.1   %      0.8   %
U.S.
                                                                                 

During the 13-week period, the Walmart U.S. comp was driven by an increase in
average ticket of 1.4 percent. Traffic was positive by 0.1 percent. All three
geographic regions had positive comp sales.

“We again delivered strong sales across the business, adding $2.3 billion in
revenue. Comp sales increased 1.5 percent this quarter, as we lapped a 1.3
percent comp last year,” said Bill Simon, Walmart U.S. president and chief
executive officer. “We’re excited about the fourth quarter. November sales
started ahead of plan. Our Black Friday plans are innovative and designed to
drive additional traffic in our stores. We expect strong performance through
Thanksgiving weekend.”

For the 4-5-4 period from Oct. 27, 2012 through Jan. 25, 2013, Walmart U.S.
expects comp store sales to range from 1.0 percent to 3.0 percent. The Walmart
U.S. 13-week comp for last year’s fourth quarter rose 1.5 percent.

For Sam’s Club, comp traffic and ticket, excluding fuel, increased for both
Business and Advantage members for the 13-week period ended Oct. 26.

“Sam’s Club comp sales, while a solid 2.7 percent, fell short of our guidance.
Business members in particular, continued to be pressured economically,” said
Rosalind Brewer, Sam’s Club president and chief executive officer. “Inflation
was lower than last quarter and much less than a year ago. While lower costs
are good for our members, deflation impacted comp sales more than expected.
Sam’s Club is stepping up price investment for the holidays, and we are well
prepared for our members’ gifting and entertaining needs.”

Sam’s Club expects comp sales, without fuel, for the current 13-week period
ending Jan. 25, 2013, to increase between 1.5 percent and 3.5 percent. Last
year, Sam’s Club comp, without fuel, for the fourth quarter comparable 13-week
period rose 5.4 percent.

To align with the company’s internal operating systems, Walmart will report
comp sales for the fourth quarter of fiscal year 2013 on a 4-5-4 basis and
will not recognize a 53-week retail calendar this year. For fiscal year 2014,
Walmart will report comp store sales on a 53-week basis, with 4-5-5 reporting
for the fourth quarter.

Both Walmart U.S. and Sam’s Club will report comp sales for the 13-week period
on Feb. 21, 2013, when the company reports fourth quarter results.

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and
live better – anytime and anywhere – in retail stores, online, and through
their mobile devices. Each week, more than 200 million customers and members
visit our 10,500 stores under 69 banners in 27 countries and e-commerce
websites in 10 countries. With fiscal year 2012 sales of approximately $444
billion, Walmart employs more than 2 million associates worldwide. Walmart
continues to be a leader in sustainability, corporate philanthropy and
employment opportunity. Additional information about Walmart can be found by
visiting http://corporate.walmart.com, and on Facebook at
http://facebook.com/walmart and on Twitter at http://twitter.com/walmart.
Online merchandise sales are available at http://www.walmart.com and
http://www.samsclub.com.

Notes

After this earnings release has been furnished to the Securities and Exchange
Commission (SEC), a pre-recorded call offering additional comments on the
quarter will be available to all investors. Please note: Walmart has a new
phone number for accessing the pre-recorded call. Callers within the U.S and
Canada may dial 877-523-5612 and enter passcode 9256278. All other callers can
access the call by dialing 201-689-8483 and entering passcode 9256278.
Information included in this release, including reconciliations, and the
pre-recorded phone call are available in the investor information area on the
company’s website at www.stock.walmart.com.

Editor’s Note: High resolution photos of Walmart’s U.S. business, Sam’s Club
and international operations are available for download at:
www.stock.walmart.com.

^1 See additional information at the end of this release regarding non-GAAP
measures.

Forward-looking statements

This release contains statements as to Walmart management’s forecasts of the
company’s earnings per share for the fiscal quarter and fiscal year to end
Jan. 31, 2013 (and certain assumptions underlying such forecasts), and
management's expectations regarding the comparable store sales of the Walmart
U.S. segment and comparable club sales, excluding fuel, of the Sam’s Club
segment of the company for the 13-week period from Oct. 27, 2012 through Jan.
25, 2013, and management’s expectations that the Walmart U.S. operating
segment will have strong performance through Thanksgiving weekend that the
company believes are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended. These statements
are intended to enjoy the protection of the safe harbor for forward-looking
statements provided by that act. Those statements can be identified by the use
of the word or phrase “based on,” “consider,” “expect,” “expects,” “guidance,”
“we’ll offer” and “will implement” in the statements or relating to such
statements. These forward-looking statements are subject to risks,
uncertainties and other factors, domestically and internationally, including:
general economic conditions; economic conditions affecting specific markets in
which we operate; competitive pressures; inflation and deflation; consumer
confidence, disposable income, credit availability, spending patterns and debt
levels; the seasonality of Walmart’s business and seasonal buying patterns in
the United States and other markets; geo-political conditions and events;
weather conditions and events and their effects; catastrophic events and
natural disasters and their effects on Walmart’s business; public health
emergencies; civil unrest and disturbances and terrorist attacks; commodity
prices; the cost of goods Walmart sells; transportation costs; the cost of
diesel fuel, gasoline, natural gas and electricity; the selling prices of
gasoline; disruption of Walmart’s supply chain, including transport of goods
from foreign suppliers; trade restrictions; changes in tariff and freight
rates; labor costs; changes in employment laws and regulations; the cost of
healthcare and other benefits; casualty and other insurance costs;
accident-related costs; adoption of or changes in tax and other laws and
regulations that affect Walmart’s business, including changes in corporate tax
rates; developments in, and the outcome of, legal and regulatory proceedings
to which Walmart is a party or is subject; currency exchange rate
fluctuations; changes in market interest rates; conditions and events
affecting domestic and global financial and capital markets; and other risks.
The company discusses certain of these factors more fully in certain of its
filings with the SEC, including its most recent annual report on Form 10-K
filed with the SEC, and this release should be read in conjunction with that
annual report on Form 10-K, together with all of the company’s other filings,
including its current reports on Form 8-K, made with the SEC through the date
of this release. The company urges readers to consider all of these risks,
uncertainties and other factors carefully in evaluating the forward-looking
statements contained in this release. As a result of these matters, changes in
facts, assumptions not being realized or other circumstances, the company’s
actual results may differ materially from the expected results discussed in
the forward-looking statements contained in this release. We discuss our
existing FCPA investigation and related matters in the filed portion of our
Nov. 15, 2012 Form 8-K, as well as in our Form 10-Q filed on Sept. 6, 2012 and
investors are referred to those SEC reports for information concerning those
matters. The forward-looking statements made in this release are made only as
of the date of this release, and Walmart undertakes no obligation to update
them to reflect subsequent events or circumstances.

                                                                                                          
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              
Wal-Mart Stores, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
                                                                            
SUBJECT TO
RECLASSIFICATION
                     Three Months Ended                                   Nine Months Ended
                  October 31,                                      October 31,
(Amounts in                                              Percent                                              Percent
millions except    2012           2011                        2012           2011          
per share data)                                          Change                                               Change
Revenues:
Net sales            $ 113,204         $ 109,516         3.4    %         $ 339,010         $ 321,569         5.4    %
Membership and      725          710         2.1    %      2,233        2,212       0.9    %
other income
Total Revenue          113,929           110,226         3.4    %           341,243           323,781         5.4    %
                                                                                                              
                                                                                                              
Cost of sales          85,517            82,591          3.5    %           256,360           242,538         5.7    %
Operating,
selling, general
and                 22,296       21,757      2.5    %      65,682       63,086      4.1    %
administrative
expenses
Operating income       6,116             5,878           4.0    %           19,201            18,157          5.7    %
                                                                                                              
Interest:
Debt                   522               528             -1.1   %           1,512             1,544           -2.1   %
Capital leases         68                72              -5.6   %           206               218             -5.5   %
Interest income     (43     )     (65     )    -33.8  %      (131    )     (131    )    0.0    %
Interest, net       547          535         2.2    %      1,587        1,631       -2.7   %
                                                                                                              
Income from
continuing
operations             5,569             5,343           4.2    %           17,614            16,526          6.6    %
before income
taxes
                                                                                                              
Provision for       1,744        1,842       -5.3   %      5,734        5,510       4.1    %
income taxes
Income from
continuing             3,825             3,501           9.3    %           11,880            11,016          7.8    %
operations
Loss from
discontinued        -            (8      )    -100.0 %      -            (36     )    -100.0 %
operations, net
of tax
Consolidated net       3,825             3,493           9.5    %           11,880            10,980          8.2    %
income
Less
consolidated net
income              (190    )     (157    )    21.0   %      (487    )     (444    )    9.7    %
attributable to
noncontrolling
interest
Consolidated net
income             $ 3,635       $ 3,336       9.0    %     $ 11,393      $ 10,536      8.1    %
attributable to
Walmart
                                                                                                              
Income from
continuing
operations
attributable to
Walmart:
Income from
continuing           $ 3,825           $ 3,501           9.3    %         $ 11,880          $ 11,016          7.8    %
operations
Less
consolidated net
income              (190    )     (157    )    21.0   %      (487    )     (444    )    9.7    %
attributable to
noncontrolling
interest
Income from
continuing
operations         $ 3,635       $ 3,344       8.7    %     $ 11,393      $ 10,572      7.8    %
attributable to
Walmart
                                                                                                              
Basic net income
per common
share:
Basic income per
common share
from continuing      $ 1.08            $ 0.97            11.3   %         $ 3.37            $ 3.04            10.9   %
operations
attributable to
Walmart
Basic income per
common share
from
discontinued        -            -           -            -            (0.01   )    -100.0 %
operations
attributable to
Walmart
Basic net income
per common share   $ 1.08        $ 0.97        11.3   %     $ 3.37        $ 3.03        11.2   %
attributable to
Walmart
                                                                                                              
Diluted net
income per
common share:
Diluted income
per common share
from continuing      $ 1.08            $ 0.97            11.3   %         $ 3.35            $ 3.03            10.6   %
operations
attributable to
Walmart
Diluted income
per common share
from
discontinued        -            (0.01   )    -100.0 %      -            (0.01   )    -100.0 %
operations
attributable to
Walmart
Diluted net
income per
common share       $ 1.08        $ 0.96        12.5   %     $ 3.35        $ 3.02        10.9   %
attributable to
Walmart
                                                                                                              
Weighted-average
number of common
shares:
Basic                  3,364             3,445                              3,385             3,473
Diluted                3,379             3,458                              3,400             3,487
                                                                                                              
Dividends
declared per         $ -               $ -                                $ 1.59            $ 1.46
common share







Wal-Mart Stores, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
                                                         
SUBJECT TO
RECLASSIFICATION
                           October 31,    January 31,    October 31,
(Amounts in millions)       2012           2012           2011
ASSETS
Current assets:
Cash and cash                  $ 8,643           $ 6,550           $ 7,063
equivalents
Receivables, net                 5,567             5,937             4,757
Inventories                      47,487            40,714            44,340
Prepaid expenses and             1,654             1,685             3,227
other
Current assets of            80           89           89      
discontinued operations
Total current assets             63,431            54,975            59,476
                                                                   
Property and equipment:
Property and equipment           163,011           155,002           151,638
Less accumulated             (50,450 )     (45,399 )     (43,909 )
depreciation
Property and equipment,          112,561           109,603           107,729
net
                                                                   
Property under capital
leases:
Property under capital           5,900             5,936             5,860
leases
Less accumulated             (3,208  )     (3,215  )     (3,197  )
amortization
Property under capital           2,692             2,721             2,663
leases, net
                                                                   
Goodwill                         20,572            20,651            20,409
Other assets and             6,562        5,456        4,967   
deferred charges
Total assets                $ 205,818     $ 193,406     $ 195,244 
                                                                   
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings          $ 8,740           $ 4,047           $ 9,594
Accounts payable                 40,272            36,608            37,555
Dividends payable                1,381             -                 1,305
Accrued liabilities              18,536            18,154            16,890
Accrued income taxes             1,010             1,164             382
Long-term debt due               6,550             1,975             1,470
within one year
Obligations under
capital leases due               331               326               321
within one year
Current liabilities of       25           26           27      
discontinued operations
Total current                    76,845            62,300            67,544
liabilities
                                                                   
Long-term debt                   38,872            44,070            44,872
Long-term obligations            2,964             3,009             2,979
under capital leases
Deferred income taxes            8,044             7,862             8,085
and other
Redeemable                       492               404               373
noncontrolling interest
                                                                   
Commitments and
contingencies
                                                                   
Equity:
Common stock                     336               342               344
Capital in excess of par         3,861             3,692             3,425
value
Retained earnings                70,256            68,691            64,769
Accumulated other
comprehensive income         (562    )     (1,410  )     (1,375  )
(loss)
Total Walmart                    73,891            71,315            67,163
shareholders’ equity
Noncontrolling interest      4,710        4,446        4,228   
Total equity                 78,601       75,761       71,391  
Total liabilities and       $ 205,818     $ 193,406     $ 195,244 
equity







Wal-Mart Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                                                             
SUBJECT TO RECLASSIFICATION
                                                    Nine Months Ended
                                                October 31,
(Amounts in millions)                            2012         2011
Cash flows from operating activities:
Consolidated net income                             $ 11,880       $ 10,980
Loss from discontinued operations, net of tax     -          36      
Income from continuing operations                     11,880         11,016
Adjustments to reconcile income from
continuing operations to net cash provided by
operating activities:
Depreciation and amortization                         6,322          6,067
Deferred income taxes                                 279            1,342
Other                                                 81             25
Changes in certain assets and liabilities,
net of effects of acquisitions:
Accounts receivable                                   501            499
Inventories                                           (6,459 )       (7,357  )
Accounts payable                                      3,545          3,417
Accrued liabilities                                   (82    )       (2,305  )
Accrued taxes                                     (160   )    210     
Net cash provided by operating activities             15,907         12,914
                                                                   
Cash flows from investing activities:
Payments for property and equipment                   (8,921 )       (9,543  )
Proceeds from disposal of property and                343            354
equipment
Investments and business acquisitions, net of         (716   )       (3,537  )
cash acquired
Other investing activities                        (58    )    (88     )
Net cash used in investing activities                 (9,352 )       (12,814 )
                                                                   
Cash flows from financing activities:
Net change in short-term borrowings                   4,700          8,558
Proceeds from issuance of long-term debt              199            5,008
Payment of long-term debt                             (639   )       (4,265  )
Dividends paid                                        (4,034 )       (3,800  )
Purchase of Company stock                             (4,657 )       (4,957  )
Other financing activities                        (263   )    (828    )
Net cash used in financing activities                 (4,694 )       (284    )
                                                                   
Effect of exchange rates on cash and cash         232        (148    )
equivalents
Net increase (decrease) in cash and cash              2,093          (332    )
equivalents
Cash and cash equivalents at beginning of         6,550      7,395   
year
Cash and cash equivalents at end of period       $ 8,643     $ 7,063   
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             

Reconciliations of and Other Information Regarding Non-GAAP Financial Measures

                                 (Unaudited)

                     (In millions, except per share data)

The following information provides reconciliations of certain non-GAAP
financial measures presented in the press release to which this reconciliation
is attached to the most nearly comparable financial measures calculated and
presented in accordance with generally accepted accounting principles
(“GAAP”). The company has provided the non-GAAP financial information
presented in the press release, which is not calculated or presented in
accordance with GAAP, as information supplemental and in addition to the
financial measures presented in the press release that are calculated and
presented in accordance with GAAP. Such non-GAAP financial measures should not
be considered superior to, as a substitute for or as an alternative to, and
should be considered in conjunction with, the GAAP financial measures
presented in the press release. The non-GAAP financial measures in the press
release may differ from similar measures used by other companies.

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. Free
cash flow was $7.0 billion and $3.4 billion for the nine-months ended Oct. 31,
2012 and 2011, respectively.

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 company’s 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 entire statements of cash flows.

Although other companies report their free cash flow, numerous methods may
exist for calculating a company’s free cash flow. As a result, the method used
by our management to calculate 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.

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.

                                            
                                                
                                                For the Nine Months Ended
                                            October 31,
(Amounts in millions)                        2012         2011
                                                            
Net cash provided by operating activities       $ 15,907       $ 12,914
Payments for property and equipment           (8,921 )    (9,543  )
Free cash flow                               $ 6,986     $ 3,371   
                                                               
Net cash used in investing activities^(1)       $ (9,352 )     $ (12,814 )
                                                               
Net cash used in financing activities           $ (4,694 )     $ (284    )


     “Net cash used in investing activities” includes payments for property
^(1) and equipment, which is also included in our computation of free cash
     flow.

Calculation of Return on Investment and Return on Assets

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 any possible
short-term impacts.

ROI was 18.0 percent and 18.2 percent for the trailing 12 months ended Oct.
31, 2012 and 2011, respectively.

We define ROI as adjusted operating income (operating income plus interest
income, depreciation and amortization, and rent expense) for the fiscal year
or trailing 12 months 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 12 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 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 or trailing 12 months 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 company’s ROI. As a result, the method used by management to
calculate 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.

                                                                
                                                                   
                                                                   
                                                                   
                                                                   
Wal-Mart Stores, Inc.
Return on Investment Calculation
                                            
                               For the Trailing Twelve Months
                               Ended,
                            October 31,
(Dollar amounts in           2012             2011
millions)
                                                                   
CALCULATION OF RETURN ON INVESTMENT
                                                                   
Numerator
Operating income               $  27,602         $  26,161
+ Interest income                 163               171
+ Depreciation and                8,385             8,073
amortization
+ Rent                            2,575             2,253
                                            
= Adjusted operating         $  38,725       $  36,658   
income
                                                                   
Denominator
                                                                   
Average total assets
of continuing                  $  200,447        $  190,954
operations^(1)
+ Average accumulated
depreciation and                  50,382            46,040
amortization^(1)
- Average accounts                38,914            36,882
payable^(1)
- Average accrued                 17,713            17,204
liabilities^(1)
+ Rent * 8                     20,600         18,024   
= Average invested           $  214,802      $  200,932  
capital
                                                                   
Return on investment           18.0     %      18.2     %
(ROI)
                                                                   
CALCULATION OF RETURN ON ASSETS
Numerator                                    
Income from                  $  17,318       $  16,195   
continuing operations
                                                                   
Denominator
                                                                   
Average total assets
of continuing                $  200,447      $  190,954  
operations^(1)
                                                                   
Return on asset (ROA)          8.6      %      8.5      %
                                                                   
                            As of October 31,
Certain Balance Sheet        2012             2011             2010
Data
                                                                   
Total assets of
continuing                     $  205,738        $  195,155        $  186,753
operations^(2)
Accumulated
depreciation and                  53,658            47,106            44,974
amortization
Accounts payable                  40,272            37,555            36,208
Accrued liabilities               18,536            16,890            17,518


^(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)Based on continuing operations only and therefore excludes the impact of
discontinued operations.Total assets as of Oct. 31, 2012, 2011 and 2010 in
the table above exclude assets of discontinued operations that are reflected
in the Condensed Consolidated Balance Sheets of $80 million, $89 million and
$137 million, respectively.





Constant Currency

In discussing our operating results, we sometimes refer to the impact of
changes in currency exchange rates that 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
period’s currency exchange rates and the comparable prior year period’s
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, we are referring to our
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 our underlying
performance without the effects of currency exchange rate fluctuations or
acquisitions.

The table below reflects the calculation of constant currency for net sales
and operating income for the three and nine months ended Oct. 31, 2012,
respectively.

                                                                    
                     Three Months Ended October 31, 2012                  Nine Months Ended October 31, 2012
                     International          Consolidated                International             Consolidated
                                  Percent                   Percent                       Percent                     Percent
                     2012                   2012                      2012                      2012         
                                  Change                    Change                        Change                      Change
(Amounts in                                                                                                  
millions)
Net sales
As reported          $ 33,159     2.4  %      $ 113,204     3.4  %        $ 97,252        7.6   %     $ 339,010       5.4  %
Currency
exchange rate         1,670                1,670                   4,662                  4,662      
fluctuations^(1)
                       34,829                   114,874                     101,914                     343,672
Net sales from        -                    -                       (3,774  )               (3,774  )   
acquisitions
Constant
currency net         $ 34,829   7.6  %      $ 114,874   4.9  %        $ 98,140     8.6   %     $ 339,898    5.7  %
sales
                                                                                                                      
Operating income
As reported          $ 1,455      4.8  %      $ 6,116       4.0  %        $ 4,258         9.6   %     $ 19,201        5.7  %
Currency
exchange rate         29                   29                      189                    189        
fluctuations^(1)
                       1,484                    6,145                       4,447                       19,390
Operating income
from                  -                    -                       (53     )               (53     )   
acquisitions
Constant
currency             $ 1,484    6.8  %      $ 6,145     4.5  %        $ 4,394      13.1  %     $ 19,337     6.5  %
operating income
                                                                                                                      
^(1) Excludes currency exchange rate fluctuations related to acquisitions until the acquisitions are included in both
comparable periods.



Contact:

Wal-Mart Stores, Inc.
Media Relations:
Randy Hargrove, 800-331-0085
or
Investor Relations:
Carol Schumacher, 479-277-1498
or
Pre-recorded conference call:
877-523-5612 (U.S. and Canada)
Passcode: 9256278
or
201-689-8483 (All other countries)
Passcode: 9256278
 
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