Walmart 2003 Annual Report Download - page 44

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Fair Value of Financial Instruments
Instrument Notional Amount Fair Value
(amounts in millions) 1/31/2003 1/31/2002 1/31/2003 1/31/2002
Derivative financial instruments designated for hedging:
Receive fixed rate, pay floating rate interest rate swaps
designated as fair value hedges $ 8,292 $ 3,792 $ 803 $172
Receive fixed rate, pay fixed rate cross-currency interest
rate swaps designated as net investment hedges
(FX notional amount: GBP 795 at 1/31/2003
and 2002) 1,250 1,250 126 192
Receive fixed rate, pay fixed rate cross-currency interest
rate swap designated as cash flow hedge (FX notional
amount: CAD 503 at 1/31/2003 and 2002) 325 325 88
Receive fixed rate, pay fixed rate cross-currency interest
rate swap designated as cash flow hedge (FX notional
amount: JPY 52,056 at 1/31/2003 and 2002) 432 –2–
10,299 5,367 939 372
Derivative financial instruments not designated for hedging:
Foreign currency exchange forward contracts
(various currencies) 185 117 ––
Basis swap 500 500 21
685 617 21
Non-derivative financial instruments:
Long-term debt 21,145 17,944 20,464 18,919
Cash and cash equivalents: The carrying amount approximates fair value due to the short maturity of these instruments.
Long-term debt: Fair value is based on the Company’s current incremental borrowing rate for similar types of borrowing
arrangements.
Interest rate instruments and net investment instruments: The fair values are estimated amounts the Company would receive
or pay to terminate the agreements as of the reporting dates.
Foreign currency contracts: The fair value of foreign currency contracts are estimated by obtaining quotes from external
sources.
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