Credit risk is monitored through established approval procedures, including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral generally cash when appropriate. Oral argument was held before the Superior Court of Appeals on August 19, 2009. At January 31, 2007, a hypothetical 10% increase or decrease in value of the U. Additional information about Walmart can be found by visiting on Facebook at and on Twitter at. The net proceeds from the issuance of such long-term debt were used to repay outstanding commercial paper indebtedness and for other general corporate purposes.
On June 20, 2011, the Supreme Court issued an opinion decertifying the class and remanding the case to the district court. Conversely, the net method allows a reduction to sales revenue. Managements Discussion and Analysis of Financial Condition and Results of Operations Overview Wal-Mart Stores, Inc. Operating expenses, as a percentage of net sales, were 19. Goodwill is evaluated for impairment by determining the fair value of the related reporting unit.
We now include in our measure of comparable store sales all stores and clubs that have been open for at least the previous 12 months. We use these cash flows, supplemented with long-term debt and short-term borrowings, to fund our operations and global expansion activities. Our Sams Club segments comparable club sales were 2. Report on Internal Control Over Financial Reporting Management has responsibility for establishing and maintaining adequate internal control over financial reporting. Additionally, the useful life of leasehold improvements is limited by the expected lease term or the economic life of the asset. Options granted after fiscal 2001 generally vest over five years. Financial information for all years has been restated to reflect the sale of McLane Company, Inc.
As the specific terms and notional amounts of the derivative instruments exactly match those of the instruments being hedged, the derivative instruments were assumed to be perfectly effective hedges and all changes in fair value of the hedges were recorded on the balance sheet with no net impact on the income statement. Generally, outstanding options granted before fiscal 2001 vest over seven years. Attorneys Office in the Northern District of California and the U. Company Performance Metrics The Companys performance metrics emphasize three priorities for improving shareholder value: growth, leverage and returns. The report is available digitally and can be viewed.
On March 28, 2008, the Company received a Notice of Violation from the Missouri Department of Natural Resources the Department alleging various violations of Missouri hazardous waste laws and regulations in connection with the activities of a third-party contractor with whom the Company had contracted for recycling services. They also affect the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Employees in foreign countries who are not U. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Our ability to continue to access the commercial paper and long-term debt markets on favorable interest rates and other terms will depend, to a significant degree, on the ratings assigned by the credit rating agencies to our indebtedness continuing to be at or above the level of our current ratings.
Cash paid for share repurchases during the nine months ended October 31, 2011 and 2010 were as follows: Share Repurchases Amounts in millions, except per share data Total Number of Shares Repurchased Average Price Paid per Share Total Investment Nine months ended October 31, 2011 92. Total inventories at January 31, 2007, were up 5. Hazardous Materials Investigations: On November 8, 2005, the Company received a grand jury subpoena from the United States Attorneys Office for the Central District of California, seeking documents and information relating to the Companys receipt, transportation, handling, identification, recycling, treatment, storage and disposal of certain merchandise that constitutes hazardous materials or hazardous waste. Increases in these expenses in fiscal 2006 were partially offset by reduced payroll costs as a percentage of net sales. These percentages assume no conversion of Seiyus preferred stock into common shares and no other issuances of Seiyu common shares. Purchase orders represent authorizations to purchase rather than binding agreements. Significant intercompany transactions have been eliminated in consolidation.
The forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date of this report, and Walmart undertakes no obligation to update any of these forward-looking statements to reflect subsequent events or circumstances. Significant discrete items are separately recognized in the income tax provision in the quarter in which they occur. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Although other companies report their free cash flow, numerous methods may exist for calculating a companys free cash flow. Volatility in currency exchange rates may continue to impact the Walmart International segments net sales in the future. The Company 18 leveraged expenses for the three and nine months ended October 31, 2011, with all three segments contributing to the Companys expense leverage for the three months ended October 31, 2011. We maintain an ethics office which oversees and administers an ethics hotline.
Net Investment Instruments At January 31, 2007, the Company is party to cross-currency interest rate swaps that hedge its net investment in the United Kingdom. Operating income growth greater than net sales growth has long been a measure of success for us. The swap was designated as a cash flow hedge of foreign currency exchange risk. The Profit Sharing component of the plan is entirely funded by the Company, and the Company makes an additional contribution to the associates 401 k component of the plan. The restricted stock rights awards are settled in stock.