Income Tax Accounting Policy
Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized.
Wal-Mart Stores records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Wal-Mart Stores records interest and penalties related to unrecognized tax benefits in interest expense and operating, selling, general and administrative expenses, respectively, in Wal-Mart Stores’s Consolidated Statements of Income.
Source: Wal-Mart Stores Inc., Annual Report
Income Tax Expense (Benefit)
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Wal-Mart Stores Inc., income tax expense (benefit), continuing operations
Source: Based on data from Wal-Mart Stores Inc. Annual Reports
| Item |
Description |
The company |
| Current tax provision |
The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations. |
Wal-Mart Stores Inc.'s current tax provision increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level.
|
| Deferred tax provision |
The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. |
Wal-Mart Stores Inc.'s deferred tax provision declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
| Provision for income taxes |
The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to pretax income (loss) from continuing operations; income tax expense (benefit) may include interest and penalties on tax uncertainties based on the entity's accounting policy. |
Wal-Mart Stores Inc.'s provision for income taxes declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
Effective Income Tax Rate (EITR)
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Wal-Mart Stores Inc., effective income tax rate (EITR) reconciliation
Source: Based on data from Wal-Mart Stores Inc. Annual Reports
| Item |
Description |
The company |
| Effective income tax rate |
A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations. |
Wal-Mart Stores Inc.'s effective income tax rate declined from 2009 to 2010 and from 2010 to 2011.
|
Deferred Tax Assets (Liabilities), Net
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Wal-Mart Stores Inc., deferred tax assets (liabilities), net
Source: Based on data from Wal-Mart Stores Inc. Annual Reports
| Item |
Description |
The company |
| Deferred tax assets |
The sum of the tax effects as of the balance sheet date of the amounts of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws (before the valuation allowance, if any, to reduce such sum amount to net realizable value). Includes any tax benefit realized in deferred tax assets for significant impacts of tax planning strategies. |
Wal-Mart Stores Inc.'s deferred tax assets increased from 2009 to 2010 and from 2010 to 2011.
|
| Deferred tax assets, net of valuation allowance |
The aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; net of deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. |
Wal-Mart Stores Inc.'s deferred tax assets, net of valuation allowance increased from 2009 to 2010 but then slightly declined from 2010 to 2011.
|
| Net deferred tax assets (liabilities) |
For entities that net deferred tax assets and tax liabilities, represents the unclassified net amount of deferred tax assets and liabilities as of the balance sheet date, which result from applying the applicable enacted tax rate to net temporary differences and carryforwards pertaining to assets or liabilities. A temporary difference is a difference between the tax basis of an asset or liability and its carrying amount in the financial statements prepared in accordance with generally accepted accounting principles that will reverse in ensuing periods. |
Wal-Mart Stores Inc.'s net deferred tax assets (liabilities) increased from 2009 to 2010 but then declined significantly from 2010 to 2011.
|
