PIGNATARO WMT MODEL USED MACRS FOR ACCELERATED D

Depreciation: WALMART
(in US$ millions) Actuals Estimates

Period Ending January 31 2010A 2011A 2012A 2013 2014

Property, plant & equipment (beg. of year) 112,324.0
Capital expenditures (beg. of year) 14,213.0 14,923.7

Book (GAAP) depreciation

Useful Life
PP&E Years 14
CAPEX Years 25 25
Depreciation SCRAP VALUE = 0
Existing PP&E 8,023.1 8,023.1
2013 CAPEX 568.5 568.5
2014 CAPEX 596.9
2015 CAPEX
2016 CAPEX
2017 CAPEX
Total book depreciation 8,591.7 9,188.6

Accelerated depreciation: SOYD (%)

Existing PP&E 13.33% 12.38%
2013 CAPEX 7.69% 7.38%
2014 CAPEX 7.69%
2015 CAPEX
2016 CAPEX
2017 CAPEX
Accelerated depreciation: SOYD ($) SCRAP VALUE = 0
Existing PP&E 14,976.5 13,906.8
2013 CAPEX 1,093.3 1,049.6
2014 CAPEX 1,148.0
2015 CAPEX
2016 CAPEX
2017 CAPEX
Total tax depreciation 16,069.8 16,104.3
Difference in depreciation 7,478.2 6,915.7
Tax rate (%) 33% 33%
Deferred taxes 2,467.8 2,282.2

Deferred taxes: MACRS: PIGNATARO 715.9 1,003.5

Deferred taxes: SOYD - MACRS 1,751.9 1,278.7

OR ACCELERATED DEPRECIATION, REPLACE WITH SUM OF DIGIITS METHOD

Estimates

2015 2016 2017

15,520.6 15,986.2 16,305.9

Question:
What is first year wherein SOYD PP&E Deprec < St. line PP&E Deprec ?
solving for k: k > 1 + 14 - 105/14 k > 7.5 hence k = 8
25 25 25 That is: k > 1 +n -sum / n
7.14%
8,023.1 8,023.1 8,023.1
568.5 568.5 568.5 year= 1
596.9 596.9 596.9
620.8 620.8 620.8
639.4 639.4
652.2
9,809.4 10,448.9 11,101.1 0

2013
11.43% 10.48% 9.52% PPE: SOYD = 105.00 13.33%
7.08% 6.77% 6.46% CAPEX2013 SOYD = 325.00 7.69%
7.38% 7.08% 6.77% CAPEX2014 SOYD = 325.00
7.69% 7.38% 7.08% CAPEX2015 SOYD = 325.00
7.69% 7.38% CAPEX2016 SOYD = 325.00
7.69% CPAEX2017 SOYD = 325.00

12,837.0 11,767.3 10,697.5

1,005.8 962.1 918.4
1,102.1 1,056.1 1,010.2
1,193.9 1,146.1 1,098.4
1,229.7 1,180.5
1,254.3
16,138.8 16,161.4 16,159.3
6,329.4 5,712.5 5,058.2
33% 33% 33%
2,088.7 1,885.1 1,669.2

791.0 596.3 411.4

1,297.7 1,288.8 1,257.8

ec < St. line PP&E Deprec ?

7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14%

2 3 4 5 6 7 8 9 10 11

1 2 3 4 5 6 7 8 9 10

2014 2015 2016 2017

12.38% 11.43% 10.48% 9.52% 8.57% 7.62% 6.67% 5.71% 4.76% 3.81%
7.38% 7.08% 6.77% 6.46%
7.69% 7.38% 7.08% 6.77%
7.69% 7.38% 7.08%
7.69% 7.38%
7.69%
7.14% 7.14% 7.14% 100.00%

12 13 14

11 12 13

2.86% 1.90% 0.95% 100.00%