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?

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