Skip to content
AnalystLens

Walmart Inc. Annual Report, Year Ended Jan 31, 2000

Filing Date
Filed April 17, 2000
Period End
January 31, 2000
Security
WMT
In the record · 2016–202610-K1110-Q328-K158

WMT filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 158 current reports (8-K) between 2016 and 2026.

  1. FY2019 annual report10-K · Mar ’19Mar ’19
  2. Leadership change8-K · Nov ’21Nov ’21
  3. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed April 17, 2000. Cited figures are marked; the original filing is the authoritative source.

Wal-Mart Stores, Inc. (WMT) reported record fiscal 2000 (year ended January 31, 2000) results, with net sales rising 20% to $165.0 billiona and net income climbing 21% to $5.38 billion, or $1.20 per diluted share.

Growth was driven by a 8% comparative store sales increase in the U.S., continued Supercenter expansion (721 Supercenters, up from 564), and the acquisition of ASDA Group PLC, the third largest U.K. retailer, for roughly $11 billionb. Gross margin improved 0.4 percentage points, helped by a favorable sales mix, lower shrinkage and markdowns, and a LIFO benefit. Returns remained strong, with return on shareholders' equity of 22.9%.

The ASDA deal materially changed the balance sheet and near-term cash profile. Total assets nearly doubled to $70.3 billion, long-term debt rose to $13.7 billionc from $6.9 billion, and commercial paper of $3.3 billion was outstanding. Operating cash flow was $8.2 billion, but capital spending of $6.2 billion and the $10.4 billion acquisition outlay pushed the company to finance the deal with new debt.

Management also flagged that the current ratio fell to 0.9 and that the debt-to-capitalization ratio stood at 46%, above its 40% target, which led it to pause share buybacks. The company raised its dividend 20% to $0.24d for fiscal 2001, its 28th consecutive annual increase. Looking ahead, Wal-Mart plans roughly $8 billion in capital expenditures for fiscal 2001, funded primarily from operating cash flow, along with about 165 new Supercenters and 40 new Wal-Mart stores.

International expansion of 90 to 100 units is also planned. Risks include a $624 million jury verdict settled for less than that amount, a pending EPA penalty claim of $5.6 million, and foreign currency and interest-rate exposure tied to its growing international footprint, which now accounts for 13.8% of sales.

02—Key points

Key Highlights

  1. Net sales rose 20% to $165.0 billion in fiscal 2000, with an 8% comparative store sales increase in the U.S.
  2. Net income grew 21% to $5.38 billion ($1.20 diluted EPS), after a $198 million non-cash charge from an accounting change for SAM'S Club membership fees.
  3. ASDA Group PLC acquisition (about $11 billion purchase price) expanded international sales to 13.8% of total company sales, from 8.9% a year earlier.
  4. Total assets increased to $70.3 billion from $50.0 billion, and long-term debt more than doubled to $13.7 billion.
  5. Gross margin improved 0.4 percentage points, driven by sales mix, reduced shrink and markdowns, and a favorable LIFO adjustment.
  6. Dividend increased 20% to $0.24 per share for fiscal 2001; share repurchases were suspended until the debt-to-capitalization ratio nears 40% (currently 46%).
  7. Fiscal 2001 plan includes about $8 billion in capital expenditures, 165 new Supercenters, and 90 to 100 international units, financed mainly by operating cash flow.

03—Questions

Frequently Asked Questions

  1. How did the ASDA acquisition affect Wal-Mart's financial position?

    The roughly $11 billion ASDA purchase was financed mainly with long-term debt and commercial paper. Total assets rose to $70.3 billion, long-term debt to $13.7 billion, and the current ratio fell to 0.9. ASDA contributed five months of results in fiscal 2000, which boosted sales and international operating profit, and it added about $7 billion of goodwill amortized over 40 years.

  2. Is Wal-Mart's dividend growing, and how safe is it?

    Yes. The dividend was $0.20 per share in fiscal 2000 and was raised 20% to $0.24 for fiscal 2001, the 28th consecutive annual increase. Management said operating cash flow ($8.2 billion in fiscal 2000) is expected to cover the higher dividend and all planned capital expenditures without new debt for those projects.

  3. Why did Wal-Mart stop buying back its stock?

    Wal-Mart repurchased only about $101 million of stock in fiscal 2000, down from $1.2 billion in fiscal 1999. It announced it would postpone further repurchases until the debt-to-total-capitalization ratio falls to about 40%. That ratio was 46% at January 31, 2000, including commercial paper, following the ASDA financing.

  4. What are the main legal and regulatory risks disclosed?

    The company is not party to any material pending litigation, though a $624 million jury verdict in a fiscal 2000 lawsuit was settled for less than that amount, with a charge of about $0.03 per share. Separately, the EPA has threatened suit over storm-water permit violations at Texas, New Mexico and Oklahoma sites, with penalty calculations of $5.6 million.

  5. How is Wal-Mart's domestic business performing?

    Domestic Wal-Mart Stores segment sales reached $108.7 billion, up 14%, and segment operating income rose 19% to $8.4 billion. SAM'S Club sales grew 8.4% to $24.8 billion, but its share of company sales fell to 15.0%. Store growth continued, with 721 Supercenters (up from 564) and 1,801 discount stores, though the discount store count declined.

04—Continue

← View all 10-K filings