EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

For Immediate Release

 

Media Relations Contact

Greg Rossiter

800-331-0085

 

Investor Relations Contact

Carol Schumacher

479-277-1498

Pre-recorded conference call

800-778-6902 (U.S. and Canada)

585-219-6420 (All other countries)

 

Walmart FY 11 First Quarter Earnings

Exceed Guidance and First Call Consensus

Highlights

 

   

Walmart reports first quarter earnings per share of $0.88, three cents above the company’s latest guidance and the First Call consensus estimate.

 

   

Net sales for the quarter were $99.1 billion, an increase of 6 percent.

 

   

Walmart International remains the fastest-growing segment, with net sales up more than 21 percent on a reported basis and almost 9 percent on a constant currency basis.

 

   

Consolidated operating income for the first quarter was $5.8 billion, up more than 10 percent from last year, with a significant contribution from Walmart U.S.

 

   

The company — all three operating segments and corporate — leveraged operating expenses for the first quarter.

 

   

Walmart U.S. comparable store sales for the first quarter 13-week period declined 1.4 percent. Sam’s Club posted a comparable club sales increase, without fuel, of 0.7 percent.

 

   

The company ended the quarter with return on investment of 19.1 percent for the trailing 12 months ended April 30, 2010, up from 18.7 percent for the comparable period last year.¹

 

   

The company added 3.6 million square feet of retail selling space this quarter and expects to have a significant number of new store openings in the second and third quarters.

BENTONVILLE, Ark., May 18, 2010 — Wal-Mart Stores, Inc. (NYSE: WMT) today reported record first quarter sales and earnings for the period ended April 30, 2010. Net sales for the first quarter of fiscal year 2011 were $99.1 billion, an increase of 6.0 percent from $93.5 billion in the first quarter last year. Net sales for the first quarter included a currency exchange rate benefit of $2.5 billion. Income from continuing operations attributable to Walmart for the quarter increased to $3.3 billion from $3.0 billion in the first quarter last year.

 

 

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


Diluted earnings per share from continuing operations attributable to Walmart (“EPS”) for the first quarter of fiscal year 2011 were $0.88, with a benefit of approximately $0.02 from currency exchange rates. This compares to EPS of $0.77 in the first quarter last year.

“Walmart kicked off the fiscal year with record first quarter net sales and earnings, and I’m pleased that earnings exceeded guidance,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “Our teams around the world delivered on our commitment to the productivity loop. We leveraged operating expenses for the second consecutive quarter and improved the profitability of our business.

“Our customers, particularly in the United States, are still concerned about their personal finances and unemployment, as well as higher fuel prices,” Duke added. “Our commitment to reducing prices and managing expenses positions us well across the retail landscape.”

Walmart will continue to grow worldwide, with a significant number of store openings expected for the second and third quarters.

The company ended the first quarter with negative free cash flow of approximately $1.6 billion.¹ Free cash flow for the quarter was affected by the lower inventory position at the end of fiscal year 2010. Inventory levels rebounded by the end of the quarter, but still remain at levels in line with the company’s improved inventory management. This inventory increase negatively impacted free cash flow by more than $2 billion.

Net Sales

Net sales were as follows (dollars in billions):

 

     Three Months Ended
April 30,
 
     2010    2009    Percent
Change
 

Net Sales:

        

Walmart U.S.

   $ 62.324    $ 61.627    1.1

Walmart International

     25.030      20.621    21.4

Sam’s Club

     11.743      11.223    4.6
                    

Total Company

   $ 99.097    $ 93.471    6.0

First quarter Walmart International net sales were $25.0 billion, an increase of 21.4 percent from last year. The increase in Walmart International net sales includes a $2.5 billion positive impact from currency exchange rate fluctuations. On a constant currency basis, Walmart International net sales were up 8.9 percent to $22.5 billion from last year’s first quarter results.

Segment Operating Income

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

 

     Three Months Ended
April 30,
 
     2010    2009    Percent
Change
 

Segment Operating Income:

        

Walmart U.S.

   $ 4.638    $ 4.391    5.6

Walmart International

     1.095      0.857    27.8

Sam’s Club

     0.429      0.393    9.2

 

 

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

 

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Walmart International reported operating income for the first quarter that included a currency exchange rate benefit of $119 million. On a constant currency basis, Walmart International operating income increased 13.9 percent to $1.0 billion for the first quarter of fiscal 2011 compared to the same period in fiscal year 2010. On a reported basis, Walmart International operating income increased 27.8 percent, to $1.1 billion compared to the same period in fiscal 2010.

Consolidated operating income for the first quarter was $5.8 billion, up 10.6 percent from last year and up 8.4 percent on a constant currency basis.

U.S. Comparable Store Sales

The company reports U.S. comparable store sales in this earnings release based on its 13-week retail calendar periods ended Apr. 30, 2010 and May 1, 2009, as follows:

 

     Without Fuel     With Fuel     Fuel Impact  
     Thirteen Weeks Ended     Thirteen Weeks Ended     Thirteen Weeks Ended  
     04/30/10     05/01/09     04/30/10     05/01/09     04/30/10     05/01/09  

Walmart U.S.

   -1.4   3.6   -1.4   3.6   0.0   0.0

Sam’s Club

   0.7   4.2   3.9   -0.5   3.2   -4.7
                                    

Total U.S.

   -1.1   3.7   -0.5   2.9   0.6   -0.8

Data in the condensed consolidated financial statements included in this news release are based on the fiscal quarters ended Apr. 30, 2010 and 2009.

Operating Segments Review and U.S. Comparable Store Sales Expectations

Walmart U.S. had operating income of $4.6 billion for the first quarter, up 5.6 percent from last year. For the first quarter, the structural changes implemented earlier this year enabled the business to leverage expenses and deliver strong profitability. Walmart U.S. comparable store sales declined 1.4 percent due to soft customer traffic, partially offset by an increase in average ticket, compared to the first quarter of fiscal year 2010.

Walmart U.S. expects comparable store sales without fuel during the 13-week period from Sat., May 1, through Fri., July 30, 2010 to be negative 2.0 percent to positive one percent, as compared to a 1.5 percent decline for the comparable period last year.

Sam’s Club delivered 0.7 percent comparable club sales without fuel for the first quarter. The clubs had strong sales from fresh foods and health and wellness categories, as well as home and apparel. Sam’s Club leveraged operating expenses. Operating income grew at a faster rate than sales, increasing 9.2 percent.

Sam’s Club expects comparable club sales without fuel during the second quarter 13-week period to be flat, plus or minus one percent, which compares to a 0.6 percent increase without fuel in the comparable period last year.

Both Walmart U.S. and Sam’s Club will report comparable sales for the 13-week period on Aug. 17, 2010, when the company reports second quarter results.

As part of an operational realignment, the Walmart units and Sam’s Clubs in Puerto Rico moved from the Walmart International segment to the respective Walmart U.S. and Sam’s Club segments, effective this fiscal year. Walmart International now consists of the company’s operations outside the United States and Puerto Rico.

 

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Walmart International ended the first quarter of fiscal year 2011 with more than $25 billion in net sales, with currency exchange rate fluctuations benefitting sales by $2.5 billion. On a constant currency basis, sales were up 8.9 percent. Mexico, Canada, Brazil and China drove the strong sales performance. On a constant currency basis, first quarter operating income for Walmart International grew faster than sales, despite a $26-million charge, net of insurance, related to the Chilean earthquake. Walmart International leveraged constant currency operating expenses for the fifth consecutive quarter.

Earnings Guidance

For the second quarter of this fiscal year, the company forecasts earnings per share from continuing operations attributable to Walmart to range from $0.93 to $0.98, as compared to $0.88 per share last year. Earnings guidance assumes that currency exchange rates remain at current levels.

“Our guidance is based on our view of the global business. This includes the continuing challenging sales environment in the United States,” said Tom Schoewe, executive vice president and chief financial officer. “We remain on track to deliver solid growth, operating leverage and superior returns.

“The company grew sales by 6 percent and added more than 3.6 million square feet of selling space during the first quarter,” Schoewe added. “In fact, we are confirming our initial capital spending guidance of $13 billion to $15 billion this year, as we continue to invest in new stores and remodeling our existing stores and clubs.”

Notes

Constant currency results are calculated by translating current year results using prior year exchange rates.

Effective Feb. 1, 2010, the company made certain changes to its internal management reporting that impacts our segment reporting. Prior year amounts have been restated for these changes accordingly. These changes only impact our segment reporting and do not have any impact on our consolidated financial statements. These changes include allocating to the segments certain information systems expenses previously included in unallocated corporate overhead and, in connection with an operational alignment, moving the Puerto Rico operations from the Walmart International segment to both the respective Walmart U.S. and Sam’s Club segments. The Walmart U.S. segment now includes the company’s mass merchant concept in the United States and Puerto Rico operating primarily under the “Walmart” or “Wal-Mart” brand, as well as walmart.com. Walmart International now consists of the company’s operations outside the United States and Puerto Rico. The Sam’s Club segment now includes the warehouse membership clubs in the United States and Puerto Rico, as well as samsclub.com.

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. Callers may listen to this call by dialing 800-778-6902, or 585-219-6420 outside the U.S. and Canada. Information included in this release, including reconciliations, and the pre-recorded phone call is available in the investor information area on the company’s Web site at www.walmartstores.com/investors.

Wal-Mart Stores, Inc. (NYSE: WMT) serves customers and members more than 200 million times per week at more than 8,400 retail units under 55 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Walmart employs more than 2 million associates worldwide. A leader in sustainability, corporate philanthropy and employment opportunity, Walmart ranked first among retailers in Fortune Magazine’s 2010 Most Admired Companies survey. Additional information about Walmart can be found by visiting www.walmartstores.com. Online merchandise sales are available at www.walmart.com and www.samsclub.com.

# # #

 

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This release contains statements as to Walmart management’s expectations regarding Walmart continuing to grow worldwide and a significant number of new stores being opened in the second and third quarters of the fiscal year ending Jan. 31, 2011, management’s forecasts of the company’s earnings per share for the fiscal quarter to end July 31, 2010 (and a statement of an assumption regarding currency exchange rates on which our forecast is based), management’s expectations regarding the comparable store sales without fuel of each of the Walmart U.S. and Sam’s Club segments of the company for the 13-week period from May 1, 2010 through July 30, 2010, and management’s expectation regarding delivering continued growth, leverage and returns 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. These statements can be identified by the use of the word or phrase “expected,” “expects,” “forecasts,” “remain on track,” and “will continue” in the statements. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including general economic conditions, the cost of goods, competitive pressures, geopolitical events and conditions, levels of unemployment, levels of consumer disposable income, changes in laws and regulations, consumer credit availability, inflation, deflation, consumer spending patterns and debt levels, currency exchange rate fluctuations, trade restrictions, changes in tariff and freight rates, changes in the costs of gasoline, diesel fuel, other energy, transportation, utilities, labor and health care, accident costs, casualty and other insurance costs, interest rate fluctuations, financial and capital market conditions, developments in litigation to which the company is a party, weather conditions, damage to the company’s facilities from natural disasters, regulatory matters 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 current reports on Form 8-K, made with the SEC through the date of this release. The company urges you 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. The forward-looking statements made in this release are made only as of the date of this release, and the company undertakes no obligation to update them to reflect subsequent events or circumstances.

 

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Wal-Mart Stores, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

SUBJECT TO RECLASSIFICATION

 

     Three Months Ended  
     April 30,  

(Amounts in millions except per share data)

   2010     2009     Percent
Change
 

Revenues:

      

Net sales

   $ 99,097      $ 93,471      6.0

Membership and other income

     751        771      -2.6
                      
     99,848        94,242      5.9

Costs and expenses:

      

Cost of sales

     74,703        70,388      6.1

Operating, selling, general and administrative expenses

     19,373        18,637      3.9
                      

Operating income

     5,772        5,217      10.6

Interest:

      

Debt

     455        448      1.6

Capital leases

     67        70      -4.3

Interest income

     (51     (51   0.0
                      

Interest, net

     471        467      0.9
                      

Income from continuing operations before income taxes

     5,301        4,750      11.6

Provision for income taxes

     1,834        1,603      14.4
                      

Income from continuing operations

     3,467        3,147      10.2

Loss from discontinued operations, net of tax

     —          (8   -100.0
                      

Consolidated net income

     3,467        3,139      10.4

Less consolidated net income attributable to noncontrolling interest

     (143     (117   22.2
                      

Consolidated net income attributable to Walmart

   $ 3,324      $ 3,022      10.0
                      

Income from continuing operations attributable to Walmart:

      

Income from continuing operations

   $ 3,467      $ 3,147      10.2

Less consolidated net income attributable to noncontrolling interest

     (143     (117   22.2
                      

Income from continuing operations attributable to Walmart

   $ 3,324      $ 3,030      9.7
                      

Basic net income per common share:

      

Basic income per common share from continuing operations attributable to Walmart

   $ 0.88      $ 0.77      14.3

Basic loss per common share from discontinued operations attributable to Walmart

     —          —        —     
                      

Basic net income per common share attributable to Walmart

   $ 0.88      $ 0.77      14.3
                      

Diluted net income per common share:

      

Diluted income per common share from continuing operations attributable to Walmart

   $ 0.88      $ 0.77      14.3

Diluted loss per common share from discontinued operations attributable to Walmart

     —          —        —     
                      

Diluted net income per common share attributable to Walmart

   $ 0.88      $ 0.77      14.3
                      

Weighted-average number of common shares:

      

Basic

     3,765        3,920     

Diluted

     3,781        3,930     

Dividends declared per common share

   $ 1.21      $ 1.09     

 

6


Wal-Mart Stores, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

SUBJECT TO RECLASSIFICATION

 

     April 30,     January 31,  

(Amounts in millions)

   2010     2009     2010  

ASSETS

      

Current assets:

      

Cash and cash equivalents

   $ 8,516      $ 6,578      $ 7,907   

Receivables, net

     4,235        3,356        4,144   

Inventories

     35,503        34,391        33,160   

Prepaid expenses and other

     3,291        3,266        2,980   

Current assets of discontinued operations

     129        155        140   
                        

Total current assets

     51,674        47,746        48,331   

Property and equipment:

      

Property and equipment

     139,811        127,472        137,848   

Less accumulated depreciation

     (39,602     (34,145     (38,304
                        

Property and equipment, net

     100,209        93,327        99,544   

Property under capital leases:

      

Property under capital leases

     5,713        5,394        5,669   

Less accumulated amortization

     (2,994     (2,617     (2,906
                        

Property under capital leases, net

     2,719        2,777        2,763   

Goodwill

     15,966        14,882        16,126   

Other assets and deferred charges

     3,803        3,358        3,942   
                        

Total assets

   $ 174,371      $ 162,090      $ 170,706   
                        

LIABILITIES AND EQUITY

      

Current liabilities:

      

Short-term borrowings

   $ 4,812      $ 1,457      $ 523   

Accounts payable

     31,372        28,541        30,451   

Dividends payable

     3,546        3,234        —     

Accrued liabilities

     15,617        15,263        18,734   

Accrued income taxes

     2,726        1,810        1,365   

Long-term debt due within one year

     6,012        5,731        4,050   

Obligations under capital leases due within one year

     353        318        346   

Current liabilities of discontinued operations

     74        45        92   
                        

Total current liabilities

     64,512        56,399        55,561   

Long-term debt

     32,668        32,480        33,231   

Long-term obligations under capital leases

     3,112        3,185        3,170   

Deferred income taxes and other

     5,152        5,835        5,508   

Redeemable noncontrolling interest

     325        277        307   

Commitments and contingencies

      

Equity:

      

Common stock and capital in excess of par value

     4,059        4,048        4,181   

Retained earnings

     62,486        61,556        66,638   

Accumulated other comprehensive loss

     (216     (3,373     (70
                        

Total Walmart shareholders’ equity

     66,329        62,231        70,749   

Noncontrolling interest

     2,273        1,683        2,180   
                        

Total equity

     68,602        63,914        72,929   
                        

Total liabilities and equity

   $ 174,371      $ 162,090      $ 170,706   
                        

 

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Wal-Mart Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

SUBJECT TO RECLASSIFICATION

 

     Three Months Ended
April  30,
 

(Amounts in millions)

   2010     2009  

Cash flows from operating activities:

    

Consolidated net income

   $ 3,467      $ 3,139   

Loss from discontinued operations, net of tax

     —          8   
                

Income from continuing operations

     3,467        3,147   

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:

    

Depreciation and amortization

     1,864        1,700   

Other

     (689     (192

Changes in certain assets and liabilities, net of effects of acquisitions:

    

Decrease (increase) in accounts receivable

     (97     419   

Decrease (increase) in inventories

     (2,230     153   

Increase (decrease) in accounts payable

     392        (315

Decrease in accrued liabilities

     (1,734     (1,341
                

Net cash provided by operating activities

     973        3,571   

Cash flows from investing activities:

    

Payments for property and equipment

     (2,563     (2,607

Proceeds from disposal of property and equipment

     123        132   

Other investing activities

     204        (208
                

Net cash used in investing activities

     (2,236     (2,683

Cash flows from financing activities:

    

Increase (decrease) in short-term borrowings

     4,299        (266

Proceeds from issuance of long-term debt

     1,971        1,453   

Payment of long-term debt

     (37     (63

Dividends paid

     (1,136     (1,067

Purchase of company stock

     (2,967     (886

Purchase of redeemable noncontrolling interest

     —          (436

Other financing activities

     (294     (238
                

Net cash provided by (used in) financing activities

     1,836        (1,503

Effect of exchange rates on cash and cash equivalents

     36        (82
                

Net increase (decrease) in cash and cash equivalents

     609        (697

Cash and cash equivalents at beginning of year

     7,907        7,275   
                

Cash and cash equivalents at end of year

   $ 8,516      $ 6,578   
                

 

8


Wal-Mart Stores, Inc.

Reconciliation of and Other Information regarding Non-GAAP Financial Measures

(Unaudited)

(In millions, except per share data)

The following information provides reconciliations of 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 general 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. We ended the quarter with negative free cash flow of $1.6 billion and positive free cash flow of $964 million for the three months ended April 30, 2010 and 2009, respectively. The first quarter’s decrease in free cash flow is primarily the result of increased investment in inventory.

Free cash flow is considered a non-GAAP financial measure under the SEC’s rules. 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 due to the fact that 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 statement 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 another company to calculate its free cash flow before comparing our free cash flow to that of such other company.

The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, a GAAP measure, which we believe to be the GAAP financial measure most directly comparable to free cash flow, for the three months ended April 30, 2010 and 2009, as well as information regarding net cash used in investing activities and net cash provided by (used in) financing activities in those periods.

 

9


     For the Three Months  Ended
April 30,
 

(Amounts in millions)

   2010        2009  

Net cash provided by operating activities

   $ 973         $ 3,571   

Payments for property and equipment

     (2,563        (2,607
                   

Free cash flow

   $ (1,590      $ 964   
                   

Net cash used in investing activities

   $ (2,236      $ (2,683

Net cash provided by (used in) financing activities

   $ 1,836         $ (1,503

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 employing 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 19.1 percent and 18.7 percent for the trailing 12-month periods ended April 30, 2010 and 2009, respectively. The period-over-period increase in ROI is principally due to the improvement in adjusted operating income, the timing of our Chilean acquisition and the accrual for the settlement of 63 wage-and-hour class-action lawsuits in January 2009.

We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization and rent expense) for the fiscal year or trailing twelve 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 accumulated depreciation and amortization less accounts payable and 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 under the SEC’s rules. 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 twelve 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 Walmart’s 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 another company to calculate its ROI before comparing our ROI to that of such other company.

The calculation of ROI along with a reconciliation to the calculation of ROA, the most comparable GAAP financial measurement, is as follows:

 

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     For the Twelve Months  Ended
April 30,
     

(Dollar amounts in millions)

   2010     2009      
CALCULATION OF RETURN ON INVESTMENT     

Numerator

      

Operating income

   $ 24,505      $ 22,698     

+ Interest income

     181        271     

+ Depreciation and amortization

     7,321        6,811     

+ Rent

     1,858        1,749     
                  

= Adjusted operating income

   $ 33,865      $ 31,529     
                  

Denominator

      

Average total assets of continuing operations (1)

   $ 168,089      $ 164,232     

+ Average accumulated depreciation and amortization (1)

     39,679        34,684     

- Average accounts payable (1)

     29,957        28,784     

- Average accrued liabilities (1)

     15,440        15,073     

+ Rent * 8

     14,864        13,992     
                  

= Average invested capital

   $ 177,235      $ 169,051     
                  

Return on investment (ROI)

     19.1     18.7  
                  
CALCULATION OF RETURN ON ASSETS     

Numerator

      

Income from continuing operations

   $ 15,247      $ 13,749     
                  

Denominator

      

Average total assets of continuing operations (1)

   $ 168,089      $ 164,232     
                  

Return on assets (ROA)

     9.1     8.4  
                  
     As of April 30,

Certain Balance Sheet Data

   2010     2009     2008

Total assets of continuing operations (2)

   $ 174,242      $ 161,935      $ 166,528

Accumulated depreciation and amortization

     42,596        36,762        32,606

Accounts payable

     31,372        28,541        29,027

Accrued liabilities

     15,617        15,263        14,882

 

(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 April 30, 2010, 2009 and 2008 in the table above exclude assets of discontinued operations that are reflected in the Condensed Consolidated Balance Sheets of $129 million, $155 million and $955 million, respectively.

 

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