In the 2009 Annual Report for Wal-Mart (see Appendix A), you will find Segment Information in Note 11 in the Notes to the Financial Statements.

1. As you can see, Wal-Mart has three different segments: Walmart U.S.; International; and SAM€™S CLUB (the Other segment contains unallocated corporate overhead costs). How do you think Wal-Mart primarily evaluates these segments€”as cost centers, as profit centers, or as investment centers?
2. Compute the profit margin ratio for the three segments for 2009, 2008, and 2007. Which segment is the most profitable? Which is growing the fastest in terms ofrevenues?

Notes to Financial Statements continued (in millions) Segment Information Year Ended January 31 Consolidated Walmart U.S. International SAM'S CLUB Other 2009 $255,745 18,763 Revenue. $98,645 4,940 S46,854 1,610 $401,244 22,798 Operating profit (loss) (2,515) 2008 $90,421 4,725 $44,357 1,618 $374,307 21,952 Revenue. $239,529 17,516 Operating profit (loss) 2007 (1,907) $226,294 16,620 Revenue S76,883 4,265 $41,582 1,480 $344,759 20,497 Operating profit (loss) (1,868)