why do the assets under capital leases not equal the liabilities under capital lease 642275

SAVING PEOPLE MONEY

WAL MART STORES, INC.*
CONSOLIDATED BALANCE SHEETS

 

January 31,

 

(Amounts in millions except per share data)

2009

2008

Assets

   

Current assets:

   

Cash and cash equivalents

$7,275

$5,492

Receivables

3,905

3,642

Inventories

34,511

35,159

Prepaid expenses and other

3,063

2,760

Current assets of discontinued operations

195

967

Total current assets

48,949

48,020

Property and equipment, at cost:

   

Land

19,852

19,879

Buildings and improvements

73,810

72,141

Fixtures and equipment

29,851

28,026

Transportation equipment

2,307

2,210

Property and equipment, at cost

125,820

122,256

Less accumulated depreciation

32,964

28,531

Property and equipment, net

92,856

93,725

Property under capital lease:

   

Property under capital lease

5,341

5,736

Less accumulated amortization

2,544

2,594

Property under capital lease, net

2,797

3,142

Goodwill

15,260

15,879

Other assets and deferred charges

3,567

2,748

Total assets

$163,439

$163,514

 

Liabilities and Shareholders’ Equity

   

Current liabilities:

   

Commercial paper

$1,506

$5,040

Accounts payable

28,849

30,344

Accrued liabilities

18,112

15,725

Accrued income taxes

677

1,000

Long term debt due within one year

5,848

5,913

Obligations under capital leases due within one year

315

316

Current liabilities of discontinued operations

83

140

Total current liabilities

55,390

58,478

Long term debt

31,349

29,799

Long term obligations under capital leases

3,200

3,603

Deferred income taxes and other

6,014

5,087

Minority interest

2,191

1,939

Commitments and contingencies

   

Shareholders’ equity:

   

Preferred stock ($0.10 par value; 100 shares authorized, none issued)

   

Common stock ($0.10 par value, 11,000 shares authorized, 3,925 and 3,973 issued and outstanding at January 31, 2009 and January 31, 2008, respectively)

393

397

Capital in excess of par value

3,920

3,028

 

 

January 31,

(Amounts in millions except per share data)

2009

2008

Retained earnings

63,660

57,319

Accumulated other comprehensive (loss) income

2,688

3,864

Total shareholders’ equity

65,285

64,608

Total liabilities and shareholders’ equity

$163,429

$163,514

Required

a. Observe that accumulated amortization is deducted from property under capital lease. Why is

this described as amortization instead of depreciation?

b. Why do the assets under capital leases not equal the liabilities under capital leases?