Wal-Mart to add more detail to financial reports
New York -- Wal-Mart Stores Inc. will adjust its future financial reports to add more detail on legal proceedings and cyber security after U.S. regulators asked the retailer to better explain certain matters in its latest quarterly and annual filings, Reuters reported.
Wal-Mart's correspondence with the U.S. Securities and Exchange Commission took place in June and July and was made public on Monday.
The letters include a reference to the "legal proceedings" section of Wal-Mart's quarterly filing, an area under close scrutiny by investors since the New York Times reported an alleged past bribery scheme in Mexico on April 21.
Regarding the quarterly report, the SEC asked the retailer to provide greater detail about the outcome of legal proceedings, such as the range of a possible loss from litigation, Reuters said. If no range could be provided, the SEC asked that Wal-Mart provide a reason why such an estimate could not be given.
Wal-Mart said in its June 22 reply that it would change the disclosure. Instead of reading: "While management cannot predict the ultimate outcome of these matters, management does not believe it will have a material effect on the Company's financial condition or results of operations," it will now read: "Management does not believe any possible loss or the range of any possible loss that may be incurred in connection with this matter will be material to the Company's financial condition or results of operations."
Wal-Mart also said it would update disclosures related to the Foreign Corrupt Practices Act matter if any material development occurred, Reuters reported.