You have been tasked with understanding income tax reporting at Walmart Corporation and comparing it to Target. Use the following information from Walmart Corporation to address the questions.

The Company€™s effective income tax rate is typically lower than the U. S. statutory tax rate primarily because of benefits from lower- taxed global operations, including the use of global funding structures and certain U. S. tax credits as further discussed in the €œ Cash and Cash Equivalents€ section of the Company€™s significant accounting policies in Note 1. The Company€™s non- U. S. income is generally subject to local country tax rates that are below the 35% U. S. statutory tax rate. Certain non- U. S. earnings have been indefinitely reinvested outside the U. S. and are not subject to current U. S. income tax. A reconciliation of the significant differences between the U. S. statutory tax rate and the effective income tax rate on pretax income from continuing operations is as follows:

a. What is Walmart€™s effective tax rate each year? What is the difference between Walmart€™s effective tax rate and the statutory rate? Detail the items making up the difference.
b. Compare Target€™s effective tax rate for 2011, 2012 and 2013 from Example 17.24 in the text to Walmart€™s.
c. Compute Walmart€™s conservatism ratio for each year. Comment on any changes in the ratio over the years. Would you characterize Walmart as a conservative or aggressive tax reporter?
d. Walmart reported income from discontinued operations of $ 144 million and $ 52 million in fiscal 2013 and 2012, respectively. Comment on the implications for computing the conservatism ratio.
e. Compare Target€™s conservatism ratio from Example 17.24 in the text to Walmart€™s.

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Fiscal Years Amounts in milllons) 2013 2012 2011 Current: U.S. federal U.S. state and local International $6,377 719 1,523 8,619 $5,611 622 1,743 7,976 $4,596 743 1,383 6,722 Total current tax provision Deferred: U.S. federal U.S. state and local Intemational (72) 37 (479) (514) $8,105 1,444 57 299) 1,202 $7924 38 Total deferred tax expense (benefit) Total provision for income taxes (48) (18) $7958 Fiscal Years 2012 35.0% 2013 25.0% 2.0% 2.81% 2011 35.0% 2.0% U.S. statutory tax rate 1.7% U.S. state income taxes, net of federal income tax benefit Income taxed outside the US Net impact of repatriated intermational earnings Other, net Effective income tax rate (2,6)% (2.5)% (0.6)% 31.0% (2.81% (0.3)% (13)90 32.6% 0.1% 32.9% Fiscal year (in millions) 2013 2012 2011 Net Income before Taxes from Continuing Operations $24,656 $25,662 $24,332