Long term assets are important to the sustainability of publ

Long term assets are important to the sustainability of public corporations. The most common categories of long term assets include property, plant and equipment, intangible assets, natural resources, and long term investments. Use the internet to locate the annual report of a public corporation. 1. Identify the name of the company you have chosen. 2. Review the balance sheet. 3. What is the total amount listed for the property, plant & equipment section of the balance sheet? 4. Read the notes to the financial statements and indicate the type of assets listed under the property, plant, and equipment section of the balance sheet.

Solution

1.

Walmart Inc. American multinational retail giant has been choosen which operates a chain of hypermarkets and grocery stores. Head office – Bentonville Arkansas

2.

Balance Sheet as of January 31, 2018

3.

Total Amount of Property, Plant & Equipment in Balance sheet:

4. Detail and Nature of Assets listed under Property, Plant & Equipment:

Amount in Millions

Estimated Useful Life

2018

Land

N/A

25298

Building and Improvements

3-40 years

101155

Fixtures and Equipment

1-30 years

52695

Transportation Equipment

3-15 years

2387

Construction in Progress

N/A

3619

Property and Equipment

185154

5.

Other type of assets listed under long term assets:

(Amount in millions)

2018

Goodwill

18242

Other assets and deferred charge

11798

6.

Goodwill:

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is allocated to the appropriate reporting unit when acquired. Goodwill and indefinite-lived intangible assets are not amortized; rather, they are evaluated for impairment annually and whenever events or changes in circumstances indicate that the value of the asset may be impaired. Definite-lived intangible assets are considered long-lived assets and are amortized on a straight-line basis over the periods that expected economic benefits will be provided.

The following table reflects goodwill activity for fiscal 2018;

(Amount in millions)

Walmart U.S.

Walmart International

Sam\'s Club

Total

Balance as of January 31, 2017

2236

14488

313

17037

Change in currency translation and other

0

996

0

996

Acquisition

209

0

0

209

Balance as of January 31, 2018

2445

15484

313

18242

(Amount in millions)	2018
Property and Equipment
Property and Equipment	185154
Less: Accumulated Depreciation	-77479
Property and Equipment, Net	107675
Property under Capital Lease and Financing Obligations
Property under capital lease and financing obligations	12703
Less: Accumulated Depreciation	-5560
Property under capital lease and financing obligations, Net	7143