|Previously disclosed items impacting EPS guidance for three months ended Jan. 31, 2014|
|Provided Nov. 14, 2013||Updated Jan. 31, 2014|
|50 store closures in Brazil and China||$||0.06||$||0.06|
|New discrete items|
|Brazil non-income tax contingencies||$||0.06|
|Brazil employment claim contingencies||$||0.05|
|China store lease expense charges||$||0.03|
|Sam's Club U.S. staff restructuring and club closure||$||0.01|
|Total EPS impact||$||0.26|
|Note: All EPS amounts are approximate.|
- Brazil and China store closures: Approximately 50 underperforming units between these two markets were closed.
- India transaction: Walmart terminated the franchise and supply agreements related to retail stores. The estimated charge for this transaction is now approximately $0.05 per share versus the previous estimate of $0.04 per share.
- Brazil non-income tax contingencies: The company is subject to tax examinations for non-income taxes in Brazil. A number of these examinations are ongoing, and in certain cases, have resulted in assessments from taxing authorities, some of which we are currently contesting. As part of the company’s standard review process and as a result of changing conditions and circumstances, the company expects to record additional liabilities related to these loss contingencies.
- Brazil employment claim contingencies: We expect to record additional charges related to employment claims. Walmart Brazil has experienced a significant increase in employment claims in recent years as a result of company efforts to improve productivity and reduce costs. The company has performed a detailed review of potential liabilities related to these claims, as well as a review of our historical processes and practices related to accounting for court deposits required to litigate such claims. As a result of this review, the company expects to record charges to increase our liabilities and account for settlements of historical employment claims.
- China store lease expense charges: We identified a historical lease accounting practice that did not conform to our U.S. GAAP-based global policies. As a result, the company expects to record a charge to conform to this accounting practice.
- Sam’s Club U.S restructuring and club closure.: Sam’s Club is implementing a new in-club leadership and staff structure to better align U.S. club teams with the sales volume of each club, and expects to record a charge for severance-related costs. Additionally, one club is being closed.