I don\'t understand the difference between interest cost and interest expense? T

Question

I don't understand the difference between interest cost and interest expense? Thank you and using Walmarts 2017 financial data

http://stock.walmart.com/investors/financial-information/annual-reports-and-proxies/default.aspx

What is Walmart’s total (gross) interest cost for fiscal year ending 1/31/2017 including any interest that may have been capitalized on the balance sheet? (Gross interest cost is total interest cost without netting it with interest income (revenue)).

$2,303 million

What is Walmart’s (gross) interest expense for fiscal year ending 1/31/2017, without including any interest that may have been capitalized? (Gross interest expense is total interest expense without netting it with interest income (revenue)).

Explanation / Answer

Interest cost = Total amount paid as interest during the year.

Interest expense = Total amount paid as interest MINUS Interest capitalised

Question 1:

Total Interest cost during the year = Interest expense + Interest capitalised

= $2,367 million + $36 million

= $2,403 million

**Note - ? Interest costs capitalized on construction projects is $36 million [PAGE NO. - 42].

Question 2:

Interest expense during the year = $2,044 million + $323 million = $2,367 million [PAGE NO.- 36]

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