UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
February 19, 2019

Walmart Inc.
(Exact Name of Registrant as Specified in Charter)

			
Delaware	001-06991	71-0415188	
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)	
 
702 S.W. 8th Street
Bentonville, Arkansas 72716
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code:
(479) 273-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

	
		
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

		
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

		
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

		
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.
In accordance with Item 2.02 of Form 8-K of the Securities and Exchange Commission (the "SEC"), Walmart Inc., a Delaware corporation (the "Company"), is furnishing to the SEC a press release that the Company will issue on February 19, 2019 (the "Press Release") and a financial presentation that will be first posted by the Company on the Company’s website at http://stock.walmart.com on February 19, 2019 (the "Financial Presentation"). The Press Release and the Financial Presentation will disclose information regarding the Company's results of operations for the three and twelve months ended January 31, 2019, and the Company's financial condition as of January 31, 2019.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, which are furnished herewith pursuant to and relate to this Item 2.02, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of Section 18 of the Exchange Act. The information in this Item 2.02 of this Current Report on Form 8-K and Exhibits 99.1 and 99.2 hereto shall not be incorporated by reference into any filing or other document filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, the rules and regulations of the SEC thereunder, the Exchange Act, or the rules and regulations of the SEC thereunder, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits

			
The following documents are furnished as exhibits to this Current Report on Form 8-K:	
99.1	 	Press Release	
99.2	 	Financial Presentation	

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 19, 2019

		
WALMART INC.	

By:	/s/ M. Brett Biggs	
Name:	M. Brett Biggs	
Title:	Executive Vice President and
Chief Financial Officer	

Walmart U.S. Q4 comp sales 1 grew 4.2% and Walmart U.S. eCommerce sales grew 43%,
Q4 2019 GAAP EPS of $1.27 ; Adjusted EPS 2 of $1.41 ,
Fiscal year 2019 GAAP EPS of $2.26 ; Adjusted EPS 2 of $4.91 ,
Company reiterates fiscal 2020 guidance
Fourth-quarter highlights

					
	Total revenue was $138.8 billion, an increase of $2.5 billion, or 1.9%. Excluding currency 2 , total revenue was $140.5 billion, an increase of $4.2 billion, or 3.1%.	 	"We had a good year, and I want to thank our associates for their great work and openness to change. They continue to inspire us as we strive to serve our customers better every day. Progress on initiatives to accelerate growth, along with a favorable economic environment, helped us deliver strong comp sales and gain market share. We're excited about the work we're doing to reach customers in a more digitally-connected way. Our commitment to the customer is clear - we'll be there when, where and how they want to shop and deliver new, convenient experiences that are uniquely Walmart."
Doug McMillon
President and CEO, Walmart	 	
	Walmart U.S. comp sales 1  on a two-year stack of 6.8% is the strongest growth in 9 years.	 		 	
	Walmart U.S. eCommerce continued to benefit from the expansion of grocery pickup and delivery and a broader assortment on Walmart.com.	 		 	
	Sam's Club comp sales 1  increased 3.3% 3 , and eCommerce sales grew 21%.	 		 	
	Net sales at Walmart International were $32.3 billion, a decline of 2.3%. Excluding currency 2 , net sales were $34.0 billion, an increase of 2.7%.	 		 	
	Adjusted EPS 2  excludes the effects of two items:
•
A charge of $0.17 due to an adjustment in the provisional amount related to Tax Reform
•
An unrealized gain of $0.03 on the company's equity investment in JD.com	
Fiscal 2019 highlights

		
	Total revenue was $514.4 billion, an increase of $14.1 billion, or 2.8%. Excluding currency 2 , total revenue was $515.1 billion, an increase of $14.8 billion, or 3.0%.	
	Walmart U.S. comp sales 1  increased 3.6%. Grocery pickup and delivery are available in more than 2,100 and nearly 800 locations, respectively.	
	Walmart U.S. eCommerce sales increased 40%. Net Promoter Score and the company's Customer Value Index continue to improve.	
	The company generated $27.8 billion in operating cash flow and returned $13.5 billion to shareholders through dividends and share repurchases.	
	Adjusted EPS 2  excludes the effects of three items:
•
A charge of $1.54 related to the sale of a majority stake in Walmart Brazil
•
An unrealized loss of $0.95 on the company's equity investment in JD.com
•
A charge of $0.16 due to an adjustment in the provisional amount related to Tax Reform	
Key results
(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)

											
 		Q4 FY19	Q4 FY18	Change	 	FY19	FY18	Change	
 									
 	Revenue	$138.8	$136.3	$2.5	1.9%	 	$514.4	$500.3	$14.1	2.8%	
 	Revenue (constant currency) 2	$140.5	$136.3	$4.2	3.1%	 	$515.1	$500.3	$14.8	3.0%	
 	Operating income	$6.1	$4.5	$1.6	35.8%	 	$22.0	$20.4	$1.5	7.4%	
 	Operating income (constant currency) 2	$6.2	$4.5	$1.7	37.9%	 	$22.0	$20.4	$1.5	7.4%	

1 13-week period ended January 25, 2019 compared to 13-week period ended January 26, 2018, and excludes fuel. See Supplemental Financial Information for additional information.   
2 See additional information at the end of this release regarding non-GAAP financial measures.
3 Tobacco sales negatively affected Sam's Club's comparable sales by approximately 200 basis points.

			
NYSE: WMT	February 19, 2019	stock.walmart.com	

2

	
							
Free Cash Flow 1	FY19	$ Change	 	Returns to Shareholders	FY19	% Change	
Operating cash flow	$27.8	-$0.6	 	Dividends	$6.1	-0.3%	
Capital expenditures	$10.3	$0.3	 	Share repurchases 2	$7.4	-10.7%	
Free cash flow 1	$17.4	-$0.9	 	Total	$13.5	-6.3%	

Fiscal 2020 full year guidance
The company reiterates the following guidance, which was originally provided at its meeting for the investment community on October 16, 2018. Assumptions in the guidance include that economic conditions, currency rates and the tax and regulatory landscape in our largest markets remain generally consistent. Additionally, the guidance assumes no further change in fair value of the company's equity investment in JD.com.

		
Metric	FY20 Guidance	
Consolidated net sales growth	At least 3 percent in constant currency, affected:
•
Positively by the acquisition of Flipkart
•
Negatively by deconsolidation of Walmart Brazil
•
Negatively by planned tobacco sales reduction at Sam’s Club	
Comp sales growth	•
Walmart U.S.: +2.5 percent to +3 percent, excluding fuel
•
Sam’s Club: around +1 percent, excluding fuel; around +3 percent, excluding fuel and tobacco	
Walmart U.S. eCommerce net sales growth	Around 35 percent	
Walmart International net sales growth	Around 5 percent in constant currency	
Consolidated Operating Income	•
Decline by a low single-digit percentage range, including Flipkart
•
Increase by a low single-digit percentage range, excluding Flipkart	
EPS	•
Decline by a low single-digit percentage range compared with FY19 adjusted EPS 3
•
Increase by a low to mid single-digit percentage range compared with FY19 adjusted EPS, excluding Flipkart	
Effective tax rate	Approximately 26.5 percent - 27.5 percent	
Expense leverage	Approximately 20 bps	
Walmart U.S. grocery pickup and delivery	•
Approximately 3,100 grocery pickup locations by year-end FY20
•
Approximately 1,600 grocery delivery locations by year-end FY20	
Capital expenditures	Approximately $11 billion
•
Strong focus on store remodels, customer initiatives, eCommerce, technology and supply chain	
New Units	•
Walmart U.S. expects to open fewer than 10 stores
•
Walmart International expects to open slightly more than 300 new stores primarily in Walmex and China

1 See additional information at the end of this release regarding non-GAAP financial measures.
2 $11.3 billion remaining of $20 billion authorization approved in October 2017. The company repurchased approximately 80 million shares in fiscal 2019.   
3 Increase significantly compared with FY19 GAAP EPS

			
NYSE: WMT	February 19, 2019	stock.walmart.com	

3

Segment results
(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)
In the first quarter of fiscal 2019, the company revised its corporate overhead allocations to the operating segments. Accordingly, previous segment operating income was recast to be comparable to the current period.

												
   U.S .	Q4 FY19	Q4 FY18	Change	 	FY19	FY18	Change	
Net sales	$90.5	$86.6	$3.9	4.6%	 	$331.7	$318.5	$13.2	4.1%	
Comp sales (ex. fuel) 1	4.2%	2.6%	160 bps	N/A	 	3.6%	2.1%	150 bps	N/A	
	Traffic	0.9%	1.6%	-70 bps	N/A	 	NP	NP	NP	NP	
	Ticket	3.3%	1.0%	230 bps	N/A	 	NP	NP	NP	NP	
	eCommerce	~180 bps	~60 bps	~120 bps	N/A	 	NP	NP	NP	NP	
Operating income	$5.0	$4.7	$0.3	7.3%	 	$17.4	$17.0	$0.4	2.3%	

	
											
 		Q4 FY19	Q4 FY18	Change	 	FY19	FY18	Change	
 									
 	Net sales	$32.3	$33.1	-$0.8	-2.3%	 	$120.8	$118.1	$2.8	2.3%	
 	Net sales (constant currency) 2	$34.0	$33.1	$0.9	2.7%	 	$121.5	$118.1	$3.5	2.9%	
 	Operating income	$1.2	$1.3	-$0.1	-9.9%	 	$4.9	$5.2	-$0.3	-6.6%	
 	Operating income (constant currency) 2	$1.3	$1.3	$—	-2.8%	 	$4.9	$5.2	-$0.3	-6.6%	

	
													
 		Q4 FY19	Q4 FY18	Change	 	FY19	FY18	Change	
 									
 	Net sales	$14.9	$15.5	-$0.6	-3.7%	 	$57.8	$59.2	-$1.4	-2.3%	
 	Comp sales (ex. fuel) 1	3.3%	2.4%	90 bps	N/A	 	3.8%	2.0%	180 bps	N/A	
 		Traffic	6.4%	4.3%	210 bps	N/A	 	NP	NP	NP	NP	
 		Ticket	-3.1%	-1.9%	-120 bps	N/A	 	NP	NP	NP	NP	
 		eCommerce	~90 bps	~80 bps	~10 bps	N/A	 	NP	NP	NP	NP	
 	Operating income	$0.4	-$0.3	$0.7	NM	 	$1.5	$0.9	$0.6	66.1%	

1 13-week period ended January 25, 2019 compared to 13-week period ended January 26, 2018, and excludes fuel. See Supplemental Financial Information for additional information.   
2 See additional information at the end of this release regarding non-GAAP financial measures.

			
NYSE: WMT	February 19, 2019	stock.walmart.com	

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Additional highlights for fiscal year 2019

•	Added about 1,000 grocery pickup locations, and reached nearly 800 grocery delivery locations	
		
•	Announced pilot with Udelv for custom autonomous cargo vans to deliver groceries	
		
•	Announced collaboration with Ford to test grocery delivery with self-driving cars	
		
•	Launched Spark Delivery test, a new last-mile grocery delivery service	
		
•	Announced the expansion of grocery delivery providers	
		
•	Showcased new in-store innovations, including autonomous shelf-scanning robots and floor cleaners and FAST unloaders	
		
•	Remodeled approximately 500 U.S. stores	
		
•	Launched 17,000 virtual reality training devices	
		
•	Launched new adoption benefit for associates	
		
•	Raised U.S. starting wages for hourly associates to bring our average hourly total compensation and benefits to more than $17.50	
		
•	Trained about 450,000 associates in our nearly 200 Walmart U.S. training academies	
		
•	Expanded parental leave benefits for associates	
		
•	Launched $1 a day college program for associates through partnership with Guild	
		
•	Launched new digital scheduling system for store associates	
		
•	Launched Checkout with Me in all U.S. stores, a service that allows customers to checkout from anywhere	
		
•	Launched new endless aisle feature allowing customers to order and pay for online items while inside a store	
		
•	Launched Item Finder and store maps chain-wide in Walmart app	
		
•	Launched new features for the Walmart.com Marketplace, including free two-day shipping on millions of new items and the ability to return marketplace items in stores	
		
•	Announced Alphabot, highly efficient picking system for grocery pickup	
		
•	Launched Ellen DeGeneres fashion line, EV1, online and in stores	
		
•	Launched redesign of Walmart.com and Jet.com	
		
•	Launched Fanatics store on Walmart.com	
		
•	Launched Apple store on Jet.com	
		
•	Launched Nike store on Jet.com	
		
•	Launched Lord & Taylor shop on Walmart.com	
		
•	Announced partnership with Advance Auto Parts on Walmart.com	
		
•	Launched Jetblack in New York, a new conversational commerce platform	
		
•	Introduced 3D virtual shopping and “Buy the Room” feature for the Home category on Walmart.com	
		
•	Introduced new Nursery destination launched on Walmart.com	
		
•	Launched Walmart eBooks through partnership with Kobo	
		
•	Acquired virtual reality studio, Spatialand	
		
•	Announced partnership with Eko to create interactive storytelling for entertainment and retail	
		
•	Acquired Bare Necessities, a specialty retailer focused on women’s fashion	
		
•	Acquired ELOQUII, a digitally-native brand focused on women’s fashion	
		
•	Launched Allswell, a digitally-native vertical mattress brand	
		
•	Announced Capital One credit card program for Walmart customers	
		
•	Opened first food manufacturing facility in the U.S., a milk processing plant	
		
•	Announced high-tech distribution center, which can move 40 percent more product than a traditional DC	
		
•	Announced high-tech consolidation center that can receive, sort and ship freight and enable 3x more volume	
		
•	Jet announced new fulfillment center in Bronx, NY	
		
•	Acquired majority stake in Flipkart Group, India’s leading eCommerce business	
		
•	Announced proposed combination of Sainsbury’s and Asda, the company’s wholly-owned U.K. subsidiary	
		
•	Reduced ownership in Walmart Brazil with sale of 80 percent stake	
		
•	Sold financial services business in Chile	
		
•	Announced agreement to sell Walmart Canada Bank	
		
•	Increased investment in Dada-JD Daojia, a crowd-sourced delivery platform in China	
		
•	Launched online marketplace in Canada	
		
•	Launched first Walmart Rakuten Ichiba Store, the first Walmart eCommerce store in Japan	
		
•	Established joint venture with Rakuten for grocery delivery in Tokyo	
		
•	Announced agreement to acquire Cornershop for last-mile delivery capabilities in Mexico and Chile	
		
•	Walmart Mexico launched “Walmart Cashi”, a secure digital payment option for mobile devices	

			
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•	Walmart India recognized as India’s "Top 10 Best Workplaces in Retail, 2018"	
		
•	Walmart India recognized among "Top 100 Best Companies for Women, 2018”	
		
•	Launched Retail Academy in India	
		
•	Launched new partnerships in Canada to expand delivery options in grocery and general merchandise	
		
•	Launched same-day delivery from stores in Mexico	
		
•	Opened 1,000th Bodega Aurrera Express store in Mexico	
		
•	Mi Bodega Aurrera launched in-store eCommerce kiosks targeting rural areas in Mexico	
		
•	Walmart China established strategic partnership with Tencent, including use of WeChat Pay and Scan & Go	
		
•	Launched new depots in China for accelerated eCommerce fulfillment and delivery	
		
•	Asda opened its new Merchandising Centre of Excellence	
		
•	Launched free shipping for Plus members from Samsclub.com	
		
•	Announced partnership with Instacart for last-mile delivery at Sam's Club	
		
•	Launched Fresh Certification Program at Sam's Club	
		
•	Opened new Sam’s Club Now, a live club and innovation lab	
		
•	Converted four Sam's Clubs to eCommerce fulfillment centers	
		
•	Received A- grade on CDP report for climate change, up from B the last three years, and was the top performing U.S.-based food retailer	
		
•	Suppliers announced emissions reductions from our supply chain of 20 million metric tons through Project Gigaton	
		
•	Launched Project Gigaton in China	
		
•	Announced the phase out of paint removal products with methylene chloride and NMP	
		
•	Asda announced removal of wrapping from greetings cards, saving over 100 tons of plastic per year	
		
•	Asda and FareShare celebrated five years of partnership and almost eight million meals donated to charity	
		
•	Announced goal to achieve 100 percent recyclable packaging in our private brand packaging by 2025	
		
•	Walmart India announced commitment to increase direct sourcing from farmers to 25% of produce sold in cash and carry stores	
		
•	Signatory to the G7 Oceans Plastics Charter	
		
•	Signatory to the New Plastics Economy Global Commitment	
		
•	Announced agreement with SunPower, a commercial energy provider, to install solar systems at 19 stores and two distribution centers	
		
•	Announced three power purchase agreements with EDP Renewables that will enable the construction of three new utility-scale wind farms	

About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, over 275 million customers and members visit our more than 11,300 stores under 58 banners in 27 countries and eCommerce websites. With fiscal year 2019 revenue of $514.4 billion , Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com , on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart .

		
Investor Relations contact
Dan Binder (479) 258-7172
	Media Relations contact
Randy Hargrove (800) 331-0085

	
			
NYSE: WMT	February 19, 2019	stock.walmart.com	

6

Forward-Looking Statements
This release contains statements as to Walmart management's guidance regarding earnings per share, consolidated net sales growth, Walmart U.S. eCommerce net sales growth, Walmart International net sales growth, consolidated operating income, expense leverage, grocery pickup and delivery locations, number of new units, capital expenditures and Walmart's effective tax rate for the fiscal year ending January 31, 2020, and comparable sales for Walmart U.S. and Sam's Club for the 53 weeks ending January 31, 2020 . Walmart believes such statements are "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements. Walmart's actual results may differ materially from the guidance provided as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including:

•	economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates;	
		
•	currency exchange rate fluctuations, changes in market interest rates and commodity prices;	
		
•	unemployment levels; competitive pressures; inflation or deflation, generally and in particular product categories;	
		
•	consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise;	
		
•	consumer enrollment in health and drug insurance programs and such programs' reimbursement rates;	
		
•	the amount of Walmart's net sales denominated in the U.S. dollar and various foreign currencies;	
		
•	the impact of acquisitions, investments, divestitures, store or club closures, and other strategic decisions;	
		
•	Walmart's ability to successfully integrate acquired businesses, including within the eCommerce space;	
		
•	Walmart's effective tax rate and the factors affecting Walmart's effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations;	
		
•	changes in existing tax, labor and other laws and changes in tax rates;	
		
•	the imposition of new taxes on imports and new tariffs and changes in tariff rates;	
		
•	changes in existing trade restrictions and new trade restrictions;	
		
•	customer traffic and average ticket in Walmart's stores and clubs and on its eCommerce websites;	
		
•	the mix of merchandise Walmart sells, the cost of goods it sells and the shrinkage it experiences;	
		
•	the amount of Walmart's total sales and operating expenses in the various markets in which it operates;	
		
•	transportation, energy and utility costs and the selling prices of gasoline and diesel fuel	
		
•	supply chain disruptions and disruptions in seasonal buying patterns;	
		
•	consumer acceptance of and response to Walmart's stores, clubs, digital platforms, programs, merchandise offerings and delivery methods;	
		
•	cyber security events affecting Walmart and related costs;	
		
•	developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which Walmart is a party;	
		
•	casualty and accident-related costs and insurance costs;	
		
•	the turnover in Walmart's workforce and labor costs, including healthcare and other benefit costs;	
		
•	changes in accounting estimates or judgments;	
		
•	the level and consistent availability of public assistance payments;	
		
•	natural disasters, public health emergencies, civil disturbances, and terrorist attacks; and	
		
•	Walmart's expenditures for Foreign Corrupt Practices Act "FCPA" and other compliance related costs, including the adequacy of the accrual with respect to this matter.	

Such risks, uncertainties and factors also include the risks relating to Walmart’s strategy, operations and performance and the financial, legal, tax, regulatory, compliance, reputational and other risks discussed in Walmart’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC. Walmart urges you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on Walmart’s operations or financial performance. The forward-looking statements made in this release are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

	
			
NYSE: WMT	February 19, 2019	stock.walmart.com	

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Walmart Inc.
Consolidated Statements of Income
(Unaudited)

																							
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Quarters Ended	 	Fiscal Years Ended	
 	 	January 31,	 	January 31,	
(Amounts in millions, except per share data)	 	2019		2018	 	Percent Change	 	2019		2018		Percent Change	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	137,743			$	135,150		 	1.9	 %	 	$	510,329			$	495,761			2.9	 %	
Membership and other income	 	1,050			1,117		 	(6.0	)%	 	4,076			4,582			(11.0	)%	
Total revenues	 	138,793			136,267		 	1.9	 %	 	514,405			500,343			2.8	 %	
Costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of sales	 	104,907			102,640		 	2.2	 %	 	385,301			373,396			3.2	 %	
Operating, selling, general and administrative expenses	 	27,819			29,160		 	(4.6	)%	 	107,147			106,510			0.6	 %	
Operating income	 	6,067			4,467		 	35.8	 %	 	21,957			20,437			7.4	 %	
Interest:	 	 	 	 	 	 	 	 	 	 	 	 	
Debt	 	577			448		 	28.8	 %	 	1,975			1,978			(0.2	)%	
Capital lease and financing obligations	 	92			88		 	4.5	 %	 	371			352			5.4	 %	
Interest income	 	(64	)		(37	)	 	73.0	 %	 	(217	)		(152	)		42.8	 %	
Interest, net	 	605			499		 	21.2	 %	 	2,129			2,178			(2.2	)%	
Loss on extinguishment of debt	 	—		 	1,004		 	(100.0	)%	 	—		 	3,136		 	(100.0	)%	
Other (gains) and losses	 	(202	)	 	—		 	N/A		 	8,368		 	—		 	N/A		
Income before income taxes	 	5,664			2,964		 	91.1	 %	 	11,460			15,123			(24.2	)%	
Provision for income taxes	 	1,851			601		 	208.0	 %	 	4,281			4,600			(6.9	)%	
Consolidated net income	 	3,813			2,363		 	61.4	 %	 	7,179			10,523			(31.8	)%	
Consolidated net income attributable to noncontrolling interest	 	(126	)		(188	)	 	(33.0	)%	 	(509	)		(661	)		(23.0	)%	
Consolidated net income attributable to Walmart	 	$	3,687			$	2,175		 	69.5	 %	 	$	6,670			$	9,862			(32.4	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share:	 	 	 	 	 	 	 	 	 	 	 	 	
Basic net income per common share attributable to Walmart	 	$	1.27			$	0.74		 	71.6	 %	 	$	2.28			$	3.29			(30.7	)%	
Diluted net income per common share attributable to Walmart	 	$	1.27			$	0.73		 	74.0	 %	 	$	2.26			$	3.28			(31.1	)%	
 	 	 	 	 	 	 	 									
Weighted-average common shares outstanding:	 	 	 	 	 	 	 									
Basic	 	2,896			2,959		 	 	 	2,929			2,995			 	
Diluted	 	2,914			2,978		 	 	 	2,945			3,010			 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Dividends declared per common share	 	$	—		 	$	—		 	 	 	$	2.08			$	2.04			 	

8

Walmart Inc.
Consolidated Balance Sheets
(Unaudited)

									
 	 	 	 	 	
 	 	January 31,	 	January 31,	
(Amounts in millions)	 	2019	 	2018	
ASSETS	 	 	 	 	
Current assets:	 	 	 	 	
Cash and cash equivalents	 	$	7,722		 	$	6,756		
Receivables, net	 	6,283		 	5,614		
Inventories	 	44,269		 	43,783		
Prepaid expenses and other	 	3,623		 	3,511		
Total current assets	 	61,897		 	59,664		
Property and equipment:	 	 	 	 	
Property and equipment	 	185,810		 	185,154		
Less accumulated depreciation	 	(81,493	)	 	(77,479	)	
Property and equipment, net	 	104,317		 	107,675		
Property under capital lease and financing obligations:	 	 	 	 	
Property under capital lease and financing obligations	 	12,760		 	12,703		
Less accumulated amortization	 	(5,682	)	 	(5,560	)	
Property under capital lease and financing obligations, net	 	7,078		 	7,143		
 	 	 	 	 	
Goodwill	 	31,181		 	18,242		
Other long-term assets	 	14,822		 	11,798		
Total assets	 	$	219,295		 	$	204,522		
 	 	 	 	 	
LIABILITIES AND EQUITY	 	 	 	 	
Current liabilities:	 	 	 	 	
Short-term borrowings	 	$	5,225		 	$	5,257		
Accounts payable	 	47,060		 	46,092		
Accrued liabilities	 	22,159		 	22,122		
Accrued income taxes	 	428		 	645		
Long-term debt due within one year	 	1,876		 	3,738		
Capital lease and financing obligations due within one year	 	729		 	667		
Total current liabilities	 	77,477		 	78,521		
 	 	 	 	 	
Long-term debt	 	43,520		 	30,045		
Long-term capital lease and financing obligations	 	6,683		 	6,780		
Deferred income taxes and other	 	11,981		 	8,354		
 	 	 	 	 	
Commitments and contingencies	 	 	 	 	
 	 	 	 	 	
Equity:	 	 	 	 	
Common stock	 	288		 	295		
Capital in excess of par value	 	2,965		 	2,648		
Retained earnings	 	80,785		 	85,107		
Accumulated other comprehensive loss	 	(11,542	)	 	(10,181	)	
Total Walmart shareholders’ equity	 	72,496		 	77,869		
Noncontrolling interest	 	7,138		 	2,953		
Total equity	 	79,634		 	80,822		
Total liabilities and equity	 	$	219,295		 	$	204,522		

9

Walmart Inc.
Consolidated Statements of Cash Flows
(Unaudited)  

									
 	 	 	 	 	
	 	Fiscal Years Ended	
	 	January 31,	
(Amounts in millions)	 	2019		2018	
Cash flows from operating activities:	 	 	 	 	
Consolidated net income	 	$	7,179			$	10,523		
Adjustments to reconcile consolidated net income to net cash provided by operating activities:	 				
Depreciation and amortization	 	10,678			10,529		
Unrealized (gains) and losses	 	3,516		 	—		
(Gains) and losses for disposal of business operations	 	4,850		 	—		
Deferred income taxes	 	(499	)		(304	)	
Loss on extinguishment of debt	 	—		 	3,136		
Other operating activities	 	1,734			1,210		
Changes in certain assets and liabilities, net of effects of acquisitions:	 				
Receivables, net	 	(368	)		(1,074	)	
Inventories	 	(1,311	)		(140	)	
Accounts payable	 	1,831			4,086		
Accrued liabilities	 	183			928		
Accrued income taxes	 	(40	)		(557	)	
Net cash provided by operating activities	 	27,753			28,337		
 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	
Payments for property and equipment	 	(10,344	)		(10,051	)	
Proceeds from the disposal of property and equipment	 	519			378		
Proceeds from disposal of certain operations	 	876		 	1,046		
Payments for business acquisitions, net of cash acquired	 	(14,656	)	 	(375	)	
Other investing activities	 	(431	)		(77	)	
Net cash used in investing activities	 	(24,036	)		(9,079	)	
 	 	 	 	 	
Cash flows from financing activities:	 	 	 	 	
Net change in short-term borrowings	 	(53	)		4,148		
Proceeds from issuance of long-term debt	 	15,872			7,476		
Repayments of long-term debt	 	(3,784	)		(13,061	)	
Premiums paid to extinguish debt	 	—		 	(3,059	)	
Dividends paid	 	(6,102	)		(6,124	)	
Purchase of Company stock	 	(7,410	)		(8,296	)	
Dividends paid to noncontrolling interest	 	(431	)		(690	)	
Purchase of noncontrolling interest	 	—			(8	)	
Other financing activities	 	(629	)		(261	)	
Net cash used in financing activities	 	(2,537	)		(19,875	)	
 	 						
Effect of exchange rates on cash, cash equivalents and restricted cash	 	(438	)		487		
 	 						
Net increase (decrease) in cash, cash equivalents and restricted cash	 	742		 	(130	)	
Cash, cash equivalents and restricted cash at beginning of year	 	7,014		 	7,144		
Cash, cash equivalents and restricted cash at end of period	 	$	7,756		 	$	7,014		

Note: Due to the adoption of ASU 2016-18, Statement of Cash Flows-Restricted Cash (Topic 230) , on February 1, 2018, restricted cash is now included with cash and cash equivalents when reconciling the beginning and ending period amounts for both fiscal 2019 and 2018.

10

Walmart Inc.
Supplemental Financial Information
(Unaudited)

Net sales and operating income

																		
 	Net Sales	 	Operating Income	
 	Three Months Ended	 	Three Months Ended	
 	January 31,	 	January 31,	
(dollars in millions)	2019	2018	Percent Change		2019	2018	Percent Change	
Walmart U.S.	$	90,520		$	86,579		4.6	 %	 	$	5,043		$	4,701		7.3	 %	
Walmart International	32,317		33,092		-2.3	 %	 	1,170		1,298		-9.9	 %	
Sam's Club	14,906		15,479		-3.7	 %	 	414		-308		NM		
Corporate and support	—		—		N/A		 	-560		-1,224		-54.2	 %	
Consolidated	$	137,743		$	135,150		1.9	 %	 	$	6,067		$	4,467		35.8	 %	
 	 	 	 	 	 	 	 	
 	Net Sales	 	Operating Income	
 	Fiscal Years Ended	 	Fiscal Years Ended	
 	January 31,	 	January 31,	
(dollars in millions)	2019	2018	Percent Change	 	2019	2018	Percent Change	
Walmart U.S.	$	331,666		$	318,477		4.1	 %	 	$	17,386		$	16,995		2.3	 %	
Walmart International	120,824		118,068		2.3	 %	 	4,883		5,229		-6.6	 %	
Sam's Club	57,839		59,216		-2.3	 %	 	1,520		915		66.1	 %	
Corporate and support	—		—		—	 %	 	-1,832		-2,702		-32.2	 %	
Consolidated	$	510,329		$	495,761		2.9	 %	 	$	21,957		$	20,437		7.4	 %	

U.S. comparable sales results

													
 	 	With Fuel	 	Without Fuel	 	Fuel Impact	
 	 	13 Weeks Ended	 	13 Weeks Ended	 	13 Weeks Ended	
 	 	1/25/2019		1/26/2018	 	1/25/2019	 	1/26/2018	 	1/25/2019	 	1/26/2018	
Walmart U.S.	 	4.2%	 	2.7%	 	4.2%	 	2.6%	 	0.0%	 	0.1%	
Sam's Club	 	3.7%	 	3.6%	 	3.3%	 	2.4%	 	0.4%	 	1.2%	
Total U.S.	 	4.1%	 	2.8%	 	4.0%	 	2.6%	 	0.1%	 	0.2%	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	With Fuel	 	Without Fuel	 	Fuel Impact	
 	 	52 Weeks Ended	 	52 Weeks Ended	 	52 Weeks Ended	
 	 	1/25/2019	 	1/26/2018	 	1/25/2019	 	1/26/2018	 	1/25/2019	 	1/26/2018	
Walmart U.S.	 	3.7%	 	2.2%	 	3.6%	 	2.1%	 	0.1%	 	0.1%	
Sam's Club	 	5.5%	 	3.0%	 	3.8%	 	2.0%	 	1.7%	 	1.0%	
Total U.S.	 	3.9%	 	2.3%	 	3.6%	 	2.1%	 	0.3%	 	0.2%	

Comparable sales is a metric that indicates the performance of our existing stores and clubs and it is important to review in conjunction with the Company's financial results reported in accordance with GAAP.  Comparable sales excluding fuel is also an important, separate metric that indicates the performance of our existing stores and clubs without considering fuel, which is volatile and unpredictable. Other companies in our industry may calculate comparable sales differently, limiting the comparability of the metric.

11

Walmart Inc.
Reconciliations of and Other Information Regarding Non-GAAP Financial Measures
(Unaudited)

The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
Constant Currency
In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars or for countries experiencing hyperinflation. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months.
Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart's underlying performance without the effects of currency exchange rate fluctuations.
The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the three and twelve months ended January 31, 2019 .

																								
 	Three Months Ended January 31,	 	Twelve Months Ended January 31,	
 	Walmart International	 	Consolidated	 	Walmart International	 	Consolidated	
(Dollars in millions)	2019	Percent Change 1	 	2019	Percent Change 1	 	2019	Percent Change 1	 	2019	Percent Change 1	
Total revenues:	 	 	 	 	 	 	 	 	 	 	 	
As reported	$	32,646		-2.4	 %	 	$	138,793		1.9	%	 	$	122,140		2.0	 %	 	$	514,405		2.8	%	
Currency exchange rate fluctuations	1,692		N/A		 	1,692		N/A		 	702		N/A		 	702		N/A		
Constant currency total revenues	$	34,338		2.6	 %	 	$	140,485		3.1	%	 	$	122,842		2.6	 %	 	$	515,107		3.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Net sales:	 	 	 	 	 	 	 	 	 	 	 	
As reported	$	32,317		-2.3	 %	 	$	137,743		1.9	%	 	$	120,824		2.3	 %	 	$	510,329		2.9	%	
Currency exchange rate fluctuations	1,680		N/A		 	1,680		N/A		 	708		N/A		 	708		N/A		
Constant currency net sales	$	33,997		2.7	 %	 	$	139,423		3.2	%	 	$	121,532		2.9	 %	 	$	511,037		3.1	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Operating income:	 	 	 	 	 	 	 	 	 	 	 	
As reported	$	1,170		-9.9	 %	 	$	6,067		35.8	%	 	$	4,883		-6.6	 %	 	$	21,957		7.4	%	
Currency exchange rate fluctuations	92		N/A		 	92		N/A		 	2		N/A		 	2		N/A		
Constant currency operating income	$	1,262		-2.8	 %	 	$	6,159		37.9	%	 	$	4,885		-6.6	 %	 	$	21,959		7.4	%	
1 Change versus prior year comparable period.

12

Free Cash Flow
We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. We had net cash provided by operating activities of $27.8 billion for the twelve months ended January 31, 2019 , which declined when compared to $28.3 billion for the twelve months ended January 31, 2018 primarily due to timing of vendor payments, partially offset by lower tax payments mainly resulting from Tax Reform and the timing of tax payments . We generated free cash flow of $17.4 billion for the twelve months ended January 31, 2019 , which declined when compared to $18.3 billion for the twelve months ended January 31, 2018 due to the same reasons as the decline in net cash provided by operating activities, as well as $0.3 billion in increased capital expenditures .
Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.
Additionally, Walmart's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous methods may exist for calculating a company's free cash flow. As a result, the method used by Walmart's management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow.
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.

									
 	 	Fiscal Year Ended	
 	 	January 31,	
(Dollars in millions)	 	2019		2018	
Net cash provided by operating activities	 	$	27,753			$	28,337		
Payments for property and equipment (capital expenditures)	 	-10,344			-10,051		
Free cash flow	 	$	17,409			$	18,286		
 	 						
Net cash used in investing activities 1	 	$	-24,036			$	-9,079		
Net cash used in financing activities	 	-2,537			-19,875		
1 "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.

13

Adjusted EPS
Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC's rules because it excludes certain amounts not excluded in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance for the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart's core earnings performance and the ability to make a more informed assessment of such core earnings performance.

We have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2019 by adjusting EPS for the following: (1) adjustments in the provisional amount related to Tax Reform, (2) unrealized gains and losses on the company's equity investment in JD.com and (3) for the fiscal year ended January 31, 2019 only, the loss on sale of a majority stake in Walmart Brazil. We adjust for the following two items on a recurring basis each quarter:

•	Tax Reform - The SEC allowed companies to record provisional amounts during a one year measurement period from the U.S. Tax Reform enactment date. While the company recorded provisional amounts in fiscal 2018, the company adjusted such provisional amounts during fiscal 2019. As the company adjusted EPS in fiscal 2018, for consistency, the company also adjusted EPS in fiscal 2019 for changes to the provisional amounts. This is the last quarter the company will adjust for Tax Reform.	

•	Unrealized gains and losses - Beginning in fiscal 2019, due to a change in U.S. accounting principles, Walmart is required to include unrealized gains/losses of certain equity investments within net income.  The company's unrealized gains/losses primarily relate to Walmart's equity investment in JD.com.  While the company's investment in JD.com was a strategic decision for the company's retail operations in China, management's measurement of that strategy is primarily focused on the Walmart China financial results rather than the investment value of JD.com. Additionally, management does not forecast changes in fair value of its equity investments. Accordingly, management adjusts EPS for the unrealized JD.com investment gains/losses.	

													
	 	Three Months Ended January 31, 2019	
Diluted earnings per share:	 	 	 	 	 	 	
Reported EPS	 	 	 	 	 	$	1.27		
	 	 	 	 	 		
Adjustments:	 	Pre-Tax Impact	 	Tax Impact 1	 	Net Impact	
Unrealized (gains) and losses on JD.com investment	 	$	-0.06		 	$	0.03		 	$	-0.03		
Adjustment to provisional amount for Tax Reform	 	—		 	0.17		 	0.17		
Net adjustments	 	 	 	 	 	$	0.14		
	 	 	 	 	 	 	
Adjusted EPS	 	 	 	 	 	$	1.41		

													
 	 	Fiscal Year Ended January 31, 2019 2	
Diluted earnings per share:	 	 	 	 	 	 	
Reported EPS	 	 	 	 	 	$	2.26		
 	 	 	 	 	 	 	
Adjustments:	 	Pre-Tax Impact	 	Tax Impact 1	 	Net Impact	
Loss on sale of majority stake in Walmart Brazil	 	$	1.64		 	$	-0.10		 	$	1.54		
Unrealized (gains) and losses on JD.com investment	 	1.20		 	-0.25		 	0.95		
Adjustment to provisional amount for Tax Reform	 	—		 	0.16		 	0.16		
Net adjustments	 	 	 	 	 	$	2.65		
 	 	 	 	 	 	 	
Adjusted EPS	 	 	 	 	 	$	4.91		
1 Calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions.
2 Quarterly net impact of individual adjustments or Adjusted EPS may not sum to YTD net impact of individual adjustments or YTD Adjusted EPS due to rounding. Additionally, the sum of all individual adjustments may not sum due to rounding.

14

As previously disclosed in our fiscal year ended January 31, 2018 press release, we have calculated Adjusted EPS for the three months and the fiscal year ended January 31, 2018 by adjusting EPS for the following: (1) restructuring charges, (2) losses on the early extinguishment of certain debt, (3) asset impairments and write-offs, (4) U.S. associate lump sum bonuses, (5) the impact of U.S. Tax Reform, (6) a legal settlement recovery and, for the fiscal year ended January 31, 2018 only, the (7) the FCPA accrual based on discussions with government agencies regarding the possible resolution of the FCPA matter and (8) the gain on sale of Suburbia. The most directly comparable financial measure calculated in accordance with GAAP is EPS.

	
																
 	 	Three Months Ended January 31, 2018	
Diluted earnings per share:	 	 	 	 	 	 	 	 	
Reported EPS	 	 	 	 	 	 	 	$	0.73		
 	 	 	 	 	 	 	 	 	
Adjustments:	 	Pre-Tax Impact	 	Tax Impact 1	 	NCI Impact	 	Net Impact	
Restructuring charges 2	 	$	0.40		 	$	-0.12		 	—		 	$	0.28		
Loss on extinguishment of debt	 	0.34		 	-0.13		 	—		 	0.21		
Asset impairments and write-offs 3	 	0.18		 	-0.06		 	—		 	0.12		
Associate lump sum bonus	 	0.15		 	-0.06		 	—		 	0.09		
U.S. Tax Reform benefit	 	—		 	-0.07		 	—		 	-0.07		
Legal settlement recovery	 	-0.05		 	0.02		 	—		 	-0.03		
Net adjustments	 	 	 	 	 	 	 	$	0.60		
 	 	 	 	 	 	 	 	 	
Adjusted EPS	 	 	 	 	 	 	 	$	1.33		

 	 	Fiscal Year Ended January 31, 2018	
Diluted earnings per share:	 	 	 	 	 	 	 	 	
Reported EPS	 	 	 	 	 	 	 	$	3.28		
 	 	 	 	 	 	 	 	 	
Adjustments:	 	Pre-Tax Impact	 	Tax Impact 1	 	NCI Impact 4	 	Net Impact	
Loss on extinguishment of debt	 	$	1.05		 	$	-0.38		 	—		 	$	0.67		
Restructuring charges 2	 	0.40		 	-0.12		 	—		 	0.28		
Asset impairments and write-offs 3	 	0.23		 	-0.07		 	—		 	0.16		
FCPA accrual	 	0.09		 	—		 	—		 	0.09		
Associate lump sum bonus	 	0.15		 	-0.06		 	—		 	0.09		
U.S. Tax Reform benefit	 	—		 	-0.07		 	—		 	-0.07		
Gain on sale of Suburbia	 	-0.13		 	0.04		 	0.04		 	-0.05		
Legal settlement recovery	 	-0.05		 	0.02		 	—		 	-0.03		
Net adjustments	 	 	 	 	 	 	 	$	1.14		
 	 	 	 	 	 	 	 	 	
Adjusted EPS	 	 	 	 	 	 	 	$	4.42		
1   Calculated based on nature of item and statutory rate in effect for relevant jurisdictions.
2 Restructuring charges include $0.20 for restructurings in the U.S., primarily relating to Sam's Club store closures and Home Office severance, and $0.08 for Walmart International, primarily due to the winding down of the first party Brazil eCommerce operations.
3 Asset impairments and write-offs for Q4 includes $0.08 of impairment charges due to decisions to discontinue certain real estate projects at Walmart U.S. and Sam's Club and technology assets at Corporate, and $0.04 for the write-off of certain assets at Walmart International. Additionally, Q3 includes $0.04 related to a decision to exit certain properties in a Walmart International market.  
4 Calculated based on the ownership percentages of the noncontrolling interest at Walmex.

 

Safe harbor and non-GAAP measures This presentation contains statements as to Walmart management's guidance regarding earnings per share, consolidated net sales growth, Walmart U.S. eCommerce net sales growth, Walmart International net sales growth, consolidated operating income, expense leverage, grocery pickup and delivery locations, number of new units, capital expenditures and Walmart's effective tax rate for the fiscal year ending January 31, 2020, and comparable sales for Walmart U.S. and Sam's Club for the 53 weeks ending January 31, 2020. Walmart believes such statements are "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements. Walmart's actual results may differ materially from the guidance provided as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: • economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates; • currency exchange rate fluctuations, changes in market interest rates and commodity prices; • unemployment levels; competitive pressures; inflation or deflation, generally and in particular product categories; • consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; • consumer enrollment in health and drug insurance programs and such programs' reimbursement rates; • the amount of Walmart's net sales denominated in the U.S. dollar and various foreign currencies; • the impact of acquisitions, investments, divestitures, store or club closures, and other strategic decisions; • Walmart's ability to successfully integrate acquired businesses, including within the eCommerce space; • Walmart's effective tax rate and the factors affecting Walmart's effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; • changes in existing tax, labor and other laws and changes in tax rates; • the imposition of new taxes on imports and new tariffs and changes in tariff rates; • changes in existing trade restrictions and new trade restrictions; • customer traffic and average ticket in Walmart's stores and clubs and on its eCommerce websites; • the mix of merchandise Walmart sells, the cost of goods it sells and the shrinkage it experiences; • the amount of Walmart's total sales and operating expenses in the various markets in which it operates; • transportation, energy and utility costs and the selling prices of gasoline and diesel fuel • supply chain disruptions and disruptions in seasonal buying patterns; • consumer acceptance of and response to Walmart's stores, clubs, digital platforms, programs, merchandise offerings and delivery methods; • cyber security events affecting Walmart and related costs; • developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which Walmart is a party; • casualty and accident-related costs and insurance costs; • the turnover in Walmart's workforce and labor costs, including healthcare and other benefit costs; • changes in accounting estimates or judgments; • the level and consistent availability of public assistance payments; • natural disasters, public health emergencies, civil disturbances, and terrorist attacks; and • Walmart's expenditures for Foreign Corrupt Practices Act "FCPA" and other compliance related costs, including the adequacy of the accrual with respect to this matter. Such risks, uncertainties and factors also include the risks relating to Walmart’s strategy, operations and performance and the financial, legal, tax, regulatory, compliance, reputational and other risks discussed in Walmart’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC. Walmart urges you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on Walmart’s operations or financial performance. The forward-looking statements made in this release are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. This presentation includes certain non-GAAP measures as defined under SEC rules, including net sales, revenue, and operating income on a constant currency basis, adjusted EPS, comp sales excluding fuel, free cash flow and return on investment. Refer to information about the non-GAAP measures contained in this presentation. Additional information as required by Regulation G and Item 10(e) of Regulation S-K regarding non GAAP measures can be found in our most recent Form 10-K and our Form 8-K furnished as of the date of this presentation with the SEC, which are available at www.stock.walmart.com. 2

 

Fiscal Year 2020 Guidance Metric FY20 Guidance Consolidated net sales growth At least 3 percent in constant currency, affected: • Positively by the acquisition of Flipkart • Negatively by deconsolidation of Walmart Brazil • Negatively by planned tobacco sales reduction at Sam’s Club Comp sales growth • Walmart U.S.: +2.5 percent to +3 percent, excluding fuel • Sam’s Club: around +1 percent, excluding fuel; around +3 percent, excluding fuel and tobacco Walmart U.S. eCommerce net sales Around 35 percent growth Walmart International net sales growth Around 5 percent in constant currency Consolidated Operating Income • Decline by a low single-digit percentage range, including Flipkart • Increase by low single-digit percentage range, excluding Flipkart EPS • Decline by a low single-digit percentage range compared with FY19 adjusted EPS1 • Increase by a low to mid single-digit percentage range compared with FY19 adjusted EPS, excluding Flipkart Effective tax rate Approximately 26.5 percent - 27.5 percent Expense leverage Approximately 20 bps Walmart U.S. grocery pickup and delivery • Approximately 3,100 grocery pickup locations by year-end FY20 • Approximately 1,600 grocery delivery locations by year-end FY20 Capital expenditures Approximately $11 billion • Strong focus on store remodels, customer initiatives, eCommerce, technology and supply chain New Units • Walmart U.S. expects to open fewer than 10 stores • Walmart International expects to open slightly more than 300 new stores primarily in Walmex and China 1 Increase significantly compared with FY19 GAAP EPS 3

 

Walmart Inc. 1 1 1 1 (Amounts in millions, except per share data) Q4 $ Δ % Δ FY19 $ Δ % Δ Total revenue $ 138,793 $ 2,526 1.9% $ 514,405 $ 14,062 2.8% Total revenue, constant currency2 140,485 4,218 3.1% 515,107 14,764 3.0% Net sales 137,743 2,593 1.9% 510,329 14,568 2.9% Net sales, constant currency2 139,423 4,273 3.2% 511,037 15,276 3.1% Membership & other income 1,050 -67 -6.0% 4,076 -506 -11.0% Operating income 6,067 1,600 35.8% 21,957 1,520 7.4% Operating income, constant currency2 6,159 1,692 37.9% 21,959 1,522 7.4% Interest expense, net 605 106 21.2% 2,129 -49 -2.2% Other (gains) and losses -202 -202 NM 8,368 8,368 NM Consolidated net income attributable to Walmart 3,687 1,512 69.5% 6,670 -3192 -32.4% EPS 1.27 0.54 74.0% 2.26 -1.02 -31.1% Adjusted EPS2 1.41 0.08 6.0% 4.91 0.49 11.1% 1 Change versus prior year comparable period. 2 See press release located at www.stock.walmart.com and reconciliations at the end of presentation regarding non-GAAP financial measures. NM = Not meaningful 4

 

Walmart Inc. Q4 bps Δ1 FY19 bps Δ1 Gross profit rate 23.8% -21 bps 24.5% -18 bps Operating expenses as a percentage of net sales 20.2% -138 bps 21.0% -48 bps Effective tax rate2 32.7% 1,240 bps 37.4% 694 bps Debt to total capitalization3 NP NP 44.5% 710 bps Return on assets4 NP NP 3.4% -180 bps Return on investment4 NP NP 14.2% — bps 1 Basis points change versus prior year comparable period. 2 The increase in the effective tax rate for the quarter was primarily due to adjustments related to Tax Reform and the impact of Flipkart, partially offset by the benefit of federal tax regulations issued late in Q4. The increase in the effective tax rate for the full year was primarily due to the loss on sale of a majority stake in Walmart Brazil, adjustments related to Tax Reform and the impact of Flipkart. 3 Debt to total capitalization calculated as of January 31, 2019. Increase versus prior comparable period primarily due to $16 billion debt issuance to fund a portion of the purchase price for the Flipkart acquisition. Debt includes short-term borrowings, long-term debt due within one year, capital lease and financing obligations due within one year, long-term debt and long-term capital lease and financing obligations. Total capitalization includes debt and total Walmart shareholders' equity. 4 Calculated for the trailing 12 months ended January 31, 2019. For ROI, see press release located at www.stock.walmart.com and reconciliations at the end of presentation regarding non-GAAP financial measures. 5 NP = not provided; NM = not meaningful

 

Walmart Inc. 1 1 (Amounts in millions) Q4 $ Δ % Δ Receivables, net $ 6,283 $ 669 11.9% Inventories 44,269 486 1.1% Accounts payable 47,060 968 2.1% 1 Change versus prior year comparable period. 6

 

Walmart Inc. 1 (Amounts in millions) FY19 $ Δ Operating cash flow $ 27,753 $ -584 Capital expenditures 10,344 293 Free cash flow2 $ 17,409 -877 1 1 (Amounts in millions) Q4 % Δ FY19 % Δ Dividends $ 1,505 —% $ 6,102 -0.3% Share repurchases3 3,249 98.1% 7,410 -10.7% Total $ 4,754 51.2% $ 13,512 -6.3% 1 Change versus prior year comparable period. 2 See press release located at www.stock.walmart.com and reconciliations at the end of this presentation regarding non- GAAP financial measures. 3 $11.3 billion remaining of $20 billion authorization approved in October 2017. The company repurchased approximately 7 80 million shares in fiscal 2019.

 

Walmart U.S. (Amounts in millions) Q4 Δ1 FY19 Δ1 Net sales $90,520 4.6% $331,666 4.1% Comparable sales2,3 4.2% 160 bps 3.6% 150 bps • Comp traffic 0.9% -70 bps NP NP • Comp ticket 3.3% 230 bps NP NP eCommerce impact3 ~180 bps ~120 bps NP NP Gross profit rate Decrease -27 bps Decrease -28 bps Operating expense rate Decrease -46 bps Decrease -23 bps Operating income4 $5,043 7.3% $17,386 2.3% 1 Change versus prior year comparable period. 2 Comp sales for the 13-week and 52-week period ended January 25, 2019, excluding fuel. 3 The results of new acquisitions are included in our comp sales metrics in the 13th month after acquisition. 4 In the first quarter of fiscal 2019, the company revised its corporate overhead allocations to the operating segments. Accordingly, previous segment operating income was recast to be comparable to the current period. NP - Not provided 8

 

Walmart U.S. - quarterly financial highlights Sales • Comp sales1 increased 4.2% driven by ticket growth of 3.3% and traffic growth of 0.9%. eCommerce contributed approximately 180 basis points to segment comp sales growth with strength in Grocery Pickup & Delivery and eCommerce ship-to-home. • On a two-year stacked basis, comp sales were up 6.8%, the best result in nine years. Traffic was up 2.5% on a two-year stack basis. • Grocery was particularly strong with mid single-digit comp growth in the quarter and the best two-year stack comp in nine years. • The early release of government SNAP assistance benefited segment comp sales by about 40 basis points. Gross profit rate • Gross profit rate declined 27 basis points due primarily to the mix effects from our growing eCommerce business, our planned pricing strategy, and increased transportation expenses. Expenses • Operating expenses leveraged 46 basis points. Physical stores leveraged expenses for the eighth consecutive quarter largely due to strong sales performance and productivity improvements, partly offset by investments in eCommerce and technology. The overlap from last year's discrete charges benefited expense leverage by 12 basis points. Inventory • Inventory levels and in-stocks are in good shape as we start the new fiscal year. Q4 comp store inventory was up 0.8% and total inventory was up approximately 2%.  Format growth • We had net openings of 2 Supercenters and closed 1 Neighborhood Market. We remodeled about 90 stores in Q4 and nearly 500 stores in FY19. • As of Q4, we had more than 2,100 grocery pickup locations, nearly 800 stores with grocery delivery and more than 700 pickup towers. 1 Comp sales for the 13-week period ended January 25, 2019, excluding fuel. 9

 

Walmart U.S. - quarterly merchandise highlights Category Comp Comments Momentum continued in food and consumables with strong comp sales and traffic in the quarter. On a two-year stack basis, the grocery 1 comp was the best in nine years. Sales strength was broad-based as Grocery + mid single-digit customers are responding favorably to our pricing strategy, omni offer and improved private brands. Also, the early release of February SNAP assistance benefited comp sales. Pharmacy comp sales benefited from branded drug inflation, but was Health & wellness + low single-digit partially offset by a decline in 90-day scripts due to lapping last year's elevated cold, cough and flu season. General We delivered solid sales results across all categories, including strong merchandise2 + mid single-digit holiday sales. Toys, home, seasonal and electronics categories were the strongest performers in the quarter. 1 Includes food and consumables. 2 General merchandise includes entertainment, toys, hardlines, apparel, home and seasonal. 10

 

Walmart International Constant Constant 1 1 (Amounts in millions) Reported currency Reported currency Q4 Δ2 Q4 Δ2 FY191 Δ2 FY19 Δ2 Net sales $32,317 -2.3% $33,997 2.7% $120,824 2.3% $121,532 2.9% Gross profit rate Decrease -116 bps NP NP Decrease -41 bps NP NP Operating income3 $1,170 -9.9% $1,262 -2.8% $4,883 -6.6% $4,885 -6.6% 1 See press release located at www.stock.walmart.com and reconciliations at the end of presentation regarding non-GAAP financial measures. 2 Change versus prior year comparable period. 3 In the first quarter of fiscal 2019, the company revised its corporate overhead allocations to the operating segments. Accordingly, previous segment operating income was recast to be comparable to the current period. 11

 

Walmart International - quarterly financial highlights Sales • Positive comp sales growth in three of our four largest markets - Mexico, U.K. and Canada. In China, we saw a slightly negative comp in the quarter as a calendar shift of the Mid-Autumn Festival and a slower economic environment affected sales growth. • The deconsolidation of Brazil was a sales headwind in the quarter offset by the inclusion of Flipkart sales for a full quarter. • Currency negatively affected net sales by $1.7 billion. Gross profit • Gross profit rate declined 116 bps on a reported basis, primarily due to Flipkart. Operating income • Operating income in the quarter declined 9.9% on a reported basis and declined 2.8% in constant currency. • Changes in currency rates resulted in an approximately $90 million headwind to operating income. • Factors affecting our 4Q19 comparison included: ◦ The inclusion of Flipkart during the full quarter this year ◦ Lapping approximately $400 million of restructuring and impairment charges last year; • Without these items, underlying operating income would have increased slightly in constant currency. Inventory • During the quarter, inventory grew faster than sales on a reported basis. 12

 

Walmart International - key market quarterly results Comp3 Gross 1,2 Net Operating Country 3 profit sales income3 Sales Traffic Ticket rate3 Walmex4 3.8% 0.1% 3.7% 5.3% Increase Increase China -0.2% 1.3% -1.5% 1.0% Decrease Increase Canada 1.1% 0.7% 0.4% 1.5% Increase Decrease United Kingdom5 1.0% 0.7% 0.3% 2.7% Decrease Decrease 1 Results are presented on a constant currency basis here and for all key market highlights. Net sales and comp sales are presented on a nominal, calendar basis. 2 eCommerce results are included for each of the markets listed in the table. 3 Change versus prior year comparable period. 4 Walmex includes the consolidated results of Mexico and Central America. 5 Comp sales for the United Kingdom are presented excluding fuel.  13

 

Walmart International - key market highlights Walmex • Net sales increased 5.3% and comp sales increased 3.8%, led by strength in Mexico. ◦ In Mexico, comp sales increased 4.6% or 11.0% on a two-year stacked basis. ◦ Continued to grow ahead of the market, including during the El Buen Fin event. ◦ Accelerated expansion with the opening of 57 new stores (45 new stores in Mexico and 12 new locations in Central America). • Comp sales growth continued to outpace ANTAD1 self-service and clubs; Walmex has now outperformed the market for 16 consecutive quarters. ◦ Increased omnichannel sales in Mexico by over 40% during 4Q FY19. • Gross profit rate increased due to more effective negotiations with suppliers, especially for seasonal events, which was partly offset by price investments. • Operating income grew faster than sales, primarily through gross profit improvement and other income contribution, while expenses were held in line with sales. China • Net sales increased 1.0% and comp sales decreased -0.2%. • Sales were affected by factors including: ◦ Calendar shift of the Mid-Autumn Festival from early October 2017 (4Q FY18) into late September 2018 (3Q FY19); ◦ Intensifying competition from both online and traditional retailers; ◦ Slower economic growth. • Gross profit rate declined due to promotional events, investments to support increased online and multichannel sales growth and price investments in fresh. • Operating expense leverage due to store cost controls resulting from our “operate for less” program, which included lower store occupancy, labor and utility costs. • Operating income increased due to sales growth and expense leverage. 1 ANTAD - Asociación Nacional de Tiendas de Autoservicio y Departamentales; The National Association of Supermarkets and Department Stores 14

 

Walmart International - key market highlights Canada • Net sales increased 1.5%, with comp sales growth of 1.1%. ◦ Comp sales growth benefited from strength in grocery, consumables and health and wellness, partly offset by softer general merchandise sales. ◦ Maintained our market share position in grocery, consumables and health & wellness, for the 12-week period ended January 26th, according to Nielsen. • Gross profit rate increased mainly due to margin rates improvement in the grocery, health & wellness and consumables categories. • Expenses deleveraged due to a combination of factors, including statutory wage changes, investments to accelerate omnichannel and store investments to improve the customer experience. • Operating income declined primarily due to SG&A expense deleverage. U.K. • Net sales increased by 2.7%, with comp sales growth of 1.0%. ◦ This is the seventh consecutive quarter of positive comp sales growth in a highly competitive market. ◦ Sales excluding fuel benefited from continued strength in grocery with increased private label brand penetration and strong online grocery sales. ◦ An improved customer experience supported positive comp traffic growth for the second consecutive quarter. • Gross profit rate declined, reflecting continued price investments in food and mix dilution from higher fuel sales, only partly offset by non-food category margin rate improvement. • Leveraged operating expenses on higher sales and strong cost controls. • Operating income declined in the quarter, as planned, primarily due to the decrease in gross profit rate. 15

 

Sam's Club With fuel Without fuel1 With fuel Without fuel1 (Amounts in millions) Q4 Δ2 Q4 Δ2 FY19 Δ2 FY19 Δ2 Net sales $14,906 -3.7% $13,657 -4.1% $57,839 -2.3% $52,332 -3.9% Comparable sales3 3.7% 10 bps 3.3% 90 bps 5.5% 250 bps 3.8% 180 bps • Comp traffic NP NP 6.4% 210 bps NP NP NP NP • Comp ticket NP NP -3.1% -120 bps NP NP NP NP eCommerce impact NP NP ~90 bps ~10 bps NP NP NP NP Gross profit rate Increase 98 bps Increase 85 bps Decrease -2 bps Increase 12 bps Membership income NP NP NP 2.2% NP NP NP 1.5% Operating income4 $414 NM $356 NM $1,520 66.1% $1,383 73.5% 1 Represents financial information of all non-fuel operations. For the three and twelve months ended January 31, 2019, fuel sales were $1.2 billion and $5.5 billion, respectively, and fuel operating income was $58 million and $137 million, respectively. 2 Change versus prior year comparable period. 3 Comp sales for the 13-week and 52-week period and ended January 25, 2019. Tobacco sales negatively affected comparable sales by approximately 200 and 190 basis points for Q4 and FY19, respectively. 4 In the first quarter of fiscal 2019, the company revised its corporate overhead allocations to the operating segments. Accordingly, previous segment operating income was recast to be comparable to the current period. NP - Not provided 16

 

Sam's Club - quarterly financial highlights Sales • Comp sales1 increased 3.3% and comp traffic grew 6.4%. Tobacco negatively affected comp sales by 200 basis points, and the transfer of sales from closed clubs contributed approximately half of the 3.3% growth, excluding fuel. • eCommerce sales increased 21%. • Private brand sales penetration reached 26%, excluding fuel and tobacco. Gross profit • Gross profit rate increased 98 basis points and 85 basis points, with and without fuel, respectively. Higher margins on sales of fuel benefited gross profit. Without fuel, gross profit increased as a result of lapping markdowns and inventory liquidation associated with club closures in January 2018, as well as a reduction in sales of tobacco. These were partially offset by investments in price, higher eCommerce fulfillment costs and shrink. Operating expenses • Operating expenses as a percentage of net sales decreased 355 and 383 basis points, with and without fuel, respectively. Operating expense leverage is primarily the result of lapping a charge of approximately $565 million associated with club closures and discontinued real estate projects in January 2018. This was partially offset by a reduction in sales of tobacco, along with greater incentive compensation and wages. Membership income • Membership income increased 2.2%. Trends in membership improved, and membership count is essentially flat versus last year despite the closure of nearly 10% of the club base. The Plus membership tier performed well due to improvements in the value proposition, including free shipping with no minimum purchase. Inventory • Inventory declined 5.6% and inventory at comp clubs declined 3.0%. 1 Comp sales for the 13-week period ended January 25, 2019, excluding fuel. 17

 

Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + mid single-digit Deli, cooler and frozen performed well. Grocery and beverage + high single-digit Soda, water, candy, snacks and chips performed well. Consumables + low double-digit Most categories achieved at least mid single-digit growth. Home and apparel + mid single-digit Apparel, toys, home and hardlines performed well. Technology, office and Intentional de-emphasis on events across consumer electronics were offset by mobile and entertainment - mid single-digit gift cards that performed well. Health and wellness + low single-digit OTC and pharmacy performed well. 18

 

Third-party FCPA and compliance-related expenses Q4 YTD (Amounts in millions) FY19 FY18 FY19 FY18 Ongoing inquiries and investigations $3 $4 $17 $14 Global compliance program and organizational enhancements 3 3 13 26 Total $6 $7 $30 $40 These expenses are included in our Corporate and support expenses. These amounts exclude the accrual made in Q3 FY19 for the securities class-action and the accrual made in Q3 FY18 for the FCPA matter. 19

 

Non-GAAP measures - ROI We include Return on Assets ("ROA"), which is calculated in accordance with U.S. generally accepted accounting principles ("GAAP") as well as Return on Investment ("ROI") as measures to assess returns on assets. Management believes ROI is a meaningful measure to share with investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts. We consider ROA to be the financial measure computed in accordance with GAAP that is the most directly comparable financial measure to our calculation of ROI. ROA was 3.4 percent and 5.2 percent for the trailing twelve months ended January 31, 2019 and 2018, respectively. The decline in ROA was primarily due to the decrease in consolidated net income over the trailing twelve months, resulting from the $4.5 billion net loss related to the sale of a majority stake in Walmart Brazil and unrealized loss on our JD.com investment. ROI was 14.2 percent for the trailing twelve months ended January 31, 2019, which was flat compared to the prior year comparable period. We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing 12 months divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period, plus a rent factor equal to the rent for the fiscal year or trailing 12 months multiplied by a factor of 8. Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that exclude and include amounts that are included and excluded in the most directly comparable GAAP financial measure. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. In addition, we include a factor of 8 for rent expense that estimates the hypothetical capitalization of our operating leases. As mentioned above, we consider ROA to be the financial measure computed in accordance with generally accepted accounting principles most directly comparable to our calculation of ROI. ROI differs from ROA (which is consolidated net income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities; and incorporates a factor of rent to arrive at total invested capital. Because of the adjustments mentioned above, we believe ROI more accurately measures how we are deploying our key assets and is more meaningful to investors than ROA. Although ROI is a standard financial measure, numerous methods exist for calculating a company's ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI. Beginning in the first quarter of fiscal year 2020, our calculation of ROI will change upon adoption of ASU 2016-02, Leases, primarily to replace the factor of rent times 8 with US GAAP operating lease assets. 20

 

Non-GAAP measures - ROI cont. The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows: CALCULATION OF RETURN ON ASSETS CALCULATION OF RETURN ON INVESTMENT Trailing Twelve Months Trailing Twelve Months Ended January 31, Ended January 31, (Dollars in millions) 2019 2018 (Dollars in millions) 2019 2018 Numerator Numerator Consolidated net income $ 7,179 $ 10,523 Operating income $ 21,957 $ 20,437 Denominator + Interest income 217 152 Average total assets1 $ 211,909 $ 201,674 + Depreciation and amortization 10,678 10,529 Return on assets (ROA) 3.4% 5.2% + Rent 3,004 2,932 Adjusted operating income $ 35,856 $ 34,050 As of January 31, Denominator Certain Balance Sheet Data 2019 2018 2017 Average total assets1 $ 211,909 $ 201,674 + Average accumulated depreciation Total assets $ 219,295 $ 204,522 $ 198,825 and amortization1 85,107 79,995 Accumulated depreciation and amortization 87,175 83,039 76,951 - Average accounts payable1 46,576 43,763 Accounts payable 47,060 46,092 41,433 - Average accrued liabilities1 22,141 21,388 Accrued liabilities 22,159 22,122 20,654 + Rent x 8 24,032 23,456 Average invested capital $ 252,331 $ 239,974 Return on investment (ROI) 14.2% 14.2% 1 The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2. 21

 

Non-GAAP measures - free cash flow We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. We had net cash provided by operating activities of $27.8 billion for the twelve months ended January 31, 2019, which declined when compared to $28.3 billion for the twelve months ended January 31, 2018 primarily due to timing of vendor payments, partially offset by lower tax payments mainly resulting from Tax Reform and the timing of tax payments. We generated free cash flow of $17.4 billion for the twelve months ended January 31, 2019, which declined when compared to $18.3 billion for the twelve months ended January 31, 2018 due to the same reasons as the decline in net cash provided by operating activities, as well as $0.3 billion in increased capital expenditures. Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, Walmart's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows. Although other companies report their free cash flow, numerous methods may exist for calculating a company's free cash flow. As a result, the method used by Walmart's management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow. The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities. Fiscal Years Ended January 31, (Dollars in millions) 2019 2018 Net cash provided by operating activities $ 27,753 $ 28,337 Payments for property and equipment (capital expenditures) -10,344 -10,051 Free cash flow $ 17,409 $ 18,286 Net cash used in investing activities1 $ -24,036 $ -9,079 Net cash used in financing activities -2,537 -19,875 1 "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow. 22

 

Non-GAAP measures - constant currency In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars or for countries experiencing hyperinflation. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months. Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart's underlying performance without the effects of currency exchange rate fluctuations. The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the three and twelve months ended January 31, 2019. Three Months Ended January 31, Twelve Months Ended January 31, Percent Percent Percent Percent 2019 Change1 2019 Change1 2019 Change1 2019 Change1 (Dollars in millions) Walmart International Consolidated Walmart International Consolidated Total revenues: As reported $ 32,646 -2.4% $ 138,793 1.9% $ 122,140 2.0% $ 514,405 2.8% Currency exchange rate fluctuations 1,692 N/A 1,692 N/A 702 N/A 702 N/A Constant currency total revenues $ 34,338 2.6% $ 140,485 3.1% $ 122,842 2.6% $ 515,107 3.0% Net sales: As reported $ 32,317 -2.3% $ 137,743 1.9% $ 120,824 2.3% $ 510,329 2.9% Currency exchange rate fluctuations 1,680 N/A 1,680 N/A 708 N/A 708 N/A Constant currency net sales $ 33,997 2.7% $ 139,423 3.2% $ 121,532 2.9% $ 511,037 3.1% Operating income: As reported $ 1,170 -9.9% $ 6,067 35.8% $ 4,883 -6.6% $ 21,957 7.4% Currency exchange rate fluctuations 92 N/A 92 N/A 2 N/A 2 N/A Constant currency operating income $ 1,262 -2.8% $ 6,159 37.9% $ 4,885 -6.6% $ 21,959 7.4% 1 Change versus prior year comparable period. 23

 

Non-GAAP measures - adjusted EPS Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC's rules because it excludes certain amounts not excluded in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance for the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart's core earnings performance and the ability to make a more informed assessment of such core earnings performance. We have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2019 by adjusting EPS for the following: (1) adjustments in the provisional amount related to Tax Reform, (2) unrealized gains and losses on the company's equity investment in JD.com and (3) for the fiscal year ended January 31, 2019 only, the loss on sale of a majority stake in Walmart Brazil. We adjust for the following two items on a recurring basis each quarter: • Tax Reform - The SEC allowed companies to record provisional amounts during a one year measurement period from the U.S. Tax Reform enactment date. While the company recorded provisional amounts in fiscal 2018, the company adjusted such provisional amounts during fiscal 2019. As the company adjusted EPS in fiscal 2018, for consistency, the company also adjusted EPS in fiscal 2019 for changes to the provisional amounts. This is the last quarter the company will adjust for Tax Reform. • Unrealized gains and losses - Beginning in fiscal 2019, due to a change in U.S. accounting principles, Walmart is required to include unrealized gains/losses of certain equity investments within net income.  The company's unrealized gains/losses primarily relate to Walmart's equity investment in JD.com.  While the company's investment in JD.com was a strategic decision for the company's retail operations in China, management's measurement of that strategy is primarily focused on the Walmart China financial results rather than the investment value of JD.com. Additionally, management does not forecast changes in fair value of its equity investments. Accordingly, management adjusts EPS for the unrealized JD.com investment gains/losses. 24

 

Non-GAAP measures - adjusted EPS Three Months Ended Percent Fiscal Year Ended Percent January 31, 2019 Change1 January 31, 20192 Change1 Diluted earnings per share: Reported EPS3 $ 1.27 74.0% $ 2.26 -31.1% Pre-Tax Tax Net Pre-Tax Tax Net Adjustments: Impact Impact4 Impact Impact Impact4 Impact Loss on sale of majority stake in Walmart Brazil — — — 1.64 -0.10 1.54 Unrealized (gains) and losses on JD.com investment $ -0.06 $ 0.03 $ -0.03 $ 1.20 $ -0.25 $ 0.95 Adjustment to provisional amount for Tax Reform — 0.17 0.17 — 0.16 0.16 Net adjustments $ 0.14 $ 2.65 Adjusted EPS3 $ 1.41 6.0% $ 4.91 11.1% 1 Change versus prior year comparable period. 2 Quarterly net impact of individual adjustments or Adjusted EPS may not sum to YTD net impact of individual adjustments or YTD Adjusted EPS due to rounding. Additionally, the sum of all individual adjustments may not sum due to rounding. 3 The reported effective tax rate was 32.7% and 37.4% for the three months and fiscal year ended January 31, 2019, respectively. When adjusted for the above items, the effective tax rate was 22.8% and 24.6% for the three months and fiscal year ended January 31, 2019, respectively. 4 Calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. 25

 

Non-GAAP measures - adjusted EPS As previously disclosed in our fiscal year ended January 31, 2018 press release, we have calculated Adjusted EPS for the three months and the fiscal year ended January 31, 2018 by adjusting EPS for the following: (1) restructuring charges, (2) losses on the early extinguishment of certain debt, (3) asset impairments and write-offs, (4) U.S. associate lump sum bonuses, (5) the impact of U.S. Tax Reform, (6) a legal settlement recovery and, for the fiscal year ended January 31, 2018 only, the (7) the FCPA accrual based on discussions with government agencies regarding the possible resolution of the FCPA matter and (8) the gain on sale of Suburbia. The most directly comparable financial measure calculated in accordance with GAAP is EPS. Three Months Ended January 31, 2018 Fiscal Year Ended January 31, 2018 Diluted earnings per share: Reported EPS $ 0.73 $ 3.28 Pre-Tax Pre-Tax Adjustments: Impact Tax Impact1 Net Impact Impact Tax Impact1 NCI Impact4 Net Impact Restructuring charges2 $ 0.40 $ -0.12 $ 0.28 $ 0.40 $ -0.12 $ — $ 0.28 Loss on extinguishment of debt 0.34 -0.13 0.21 1.05 -0.38 — 0.67 Asset impairments and write-offs3 0.18 -0.06 0.12 0.23 -0.07 — 0.16 FCPA accrual — — — 0.09 — — 0.09 Associate lump sum bonus 0.15 -0.06 0.09 0.15 -0.06 — 0.09 U.S. Tax Reform benefit — -0.07 -0.07 — -0.07 — -0.07 Gain on sale of Suburbia — — — -0.13 0.04 0.04 -0.05 Legal settlement recovery -0.05 0.02 -0.03 -0.05 0.02 — -0.03 Net adjustments $ 0.60 $ 1.14 Adjusted EPS $ 1.33 $ 4.42 1 Calculated based on nature of item and statutory rate in effect for relevant jurisdictions. 2 Restructuring charges include $0.20 for restructurings in the U.S., primarily relating to Sam's Club store closures and Home Office severance, and $0.08 for Walmart International, primarily due to the winding down of the first party Brazil eCommerce operations. 3 Asset impairments and write-offs for Q4 include $0.08 of impairment charges due to decisions to discontinue certain real estate projects at Walmart U.S. and Sam's Club and technology assets at Corporate, and $0.04 for the write-off of certain assets at Walmart International. 26 4 Calculated based on the ownership percentages of the noncontrolling interest at Walmex. 5 Includes $0.04 in Q3 related to decision to exit certain properties in a Walmart International market.

 

Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology • Fiscal year 2020 earnings dates 27