WALMART INC., 10-Q filed on 9/2/2020
Quarterly Report
v3.20.2
Cover page - shares
6 Months Ended
Jul. 31, 2020
Aug. 31, 2020
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 31, 2020  
Document Transition Report false  
Entity File Number 001-6991  
Entity Registrant Name WALMART INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 71-0415188  
Entity Address, Address Line One 702 S.W. 8th Street  
Entity Address, City or Town Bentonville  
Entity Address, State or Province AR  
Entity Address, Postal Zip Code 72716  
City Area Code 479  
Local Phone Number 273-4000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,833,752,938
Entity Central Index Key 0000104169  
Current Fiscal Year End Date --01-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Common Stock, par value $0.10 per share    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol WMT  
Security Exchange Name NYSE  
1.900% Notes Due 2022    
Document Information [Line Items]    
Title of 12(b) Security 1.900% Notes Due 2022  
Trading Symbol WMT22  
Security Exchange Name NYSE  
2.550% Notes Due 2026    
Document Information [Line Items]    
Title of 12(b) Security 2.550% Notes Due 2026  
Trading Symbol WMT26  
Security Exchange Name NYSE  
v3.20.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Revenues:        
Net sales $ 136,824 $ 129,388 $ 270,496 $ 252,337
Membership and other income 918 989 1,868 1,965
Total revenues 137,742 130,377 272,364 254,302
Costs and expenses:        
Cost of sales 102,689 97,923 204,715 190,957
Operating, selling, general and administrative expenses 28,994 26,871 56,366 52,817
Operating income 6,059 5,583 11,283 10,528
Interest:        
Debt 577 558 1,087 1,146
Finance lease 81 83 163 168
Interest income (23) (56) (66) (104)
Interest, net 635 585 1,184 1,210
Other (gains) and losses (3,222) 85 (3,943) (752)
Income before income taxes 8,646 4,913 14,042 10,070
Provision for income taxes 2,207 1,233 3,529 2,484
Consolidated net income 6,439 3,680 10,513 7,586
Consolidated net (income) loss attributable to noncontrolling interest 37 (70) (47) (134)
Consolidated net income attributable to Walmart $ 6,476 $ 3,610 $ 10,466 $ 7,452
Net income per common share:        
Basic net income per common share attributable to Walmart (in dollars per share) $ 2.29 $ 1.27 $ 3.70 $ 2.60
Diluted net income per common share attributable to Walmart (in dollars per share) $ 2.27 $ 1.26 $ 3.67 $ 2.59
Weighted-average common shares outstanding:        
Basic (shares) 2,832 2,853 2,832 2,861
Diluted (shares) 2,848 2,869 2,848 2,878
Dividends declared per common share (in dollars per share) $ 0 $ 0 $ 2.16 $ 2.12
v3.20.2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Statement of Comprehensive Income [Abstract]        
Consolidated net income $ 6,439 $ 3,680 $ 10,513 $ 7,586
Consolidated net (income) loss attributable to noncontrolling interest 37 (70) (47) (134)
Consolidated net income attributable to Walmart 6,476 3,610 10,466 7,452
Other comprehensive income (loss), net of income taxes        
Currency translation and other 298 (81) (3,670) 426
Net investment hedges (191) 140 (34) 248
Cash flow hedges 313 (158) 34 (289)
Minimum pension liability 16 4 31 5
Other Comprehensive Income (Loss), Net of Tax 436 (95) (3,639) 390
Other comprehensive (income) loss attributable to noncontrolling interest (52) (84) 660 (118)
Other comprehensive income (loss) attributable to Walmart 384 (179) (2,979) 272
Comprehensive income, net of income taxes 6,875 3,585 6,874 7,976
Comprehensive (income) loss attributable to noncontrolling interest (15) (154) 613 (252)
Comprehensive income attributable to Walmart $ 6,860 $ 3,431 $ 7,487 $ 7,724
v3.20.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jul. 31, 2020
Jan. 31, 2020
Jul. 31, 2019
Current assets:      
Cash and cash equivalents $ 16,906 $ 9,465 $ 9,283
Receivables, net 5,111 6,284 5,382
Inventories 41,084 44,435 44,134
Prepaid expenses and other 1,895 1,622 2,572
Total current assets 64,996 61,806 61,371
Property and equipment, net 101,182 105,208 104,674
Operating lease right-of-use assets 16,869 17,424 17,239
Finance lease right-of-use assets, net 4,843 4,417 3,949
Goodwill 29,542 31,073 31,454
Other long-term assets 19,950 16,567 16,174
Total assets 237,382 236,495 234,861
Current liabilities:      
Short-term borrowings 357 575 3,681
Accounts payable 46,326 46,973 45,871
Dividends payable 3,060 0 3,023
Accrued liabilities 23,768 22,296 20,691
Accrued income taxes 610 280 387
Long-term debt due within one year 5,553 5,362 4,396
Operating lease obligations due within one year 1,734 1,793 1,795
Finance lease obligations due within one year 549 511 439
Total current liabilities 81,957 77,790 80,283
Long-term debt 40,959 43,714 44,404
Long-term operating lease obligations 15,669 16,171 16,079
Long-term finance lease obligations 4,673 4,307 3,915
Deferred income taxes and other 12,927 12,961 13,049
Commitments and contingencies
Equity:      
Common stock 283 284 285
Capital in excess of par value 3,197 3,247 2,880
Retained earnings 87,614 83,943 78,432
Accumulated other comprehensive loss (15,784) (12,805) (11,270)
Total Walmart shareholders' equity 75,310 74,669 70,327
Noncontrolling interest 5,887 6,883 6,804
Total equity 81,197 81,552 77,131
Total liabilities and equity $ 237,382 $ 236,495 $ 234,861
v3.20.2
Condensed Consolidated Statement Of Shareholders' Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss
Total Walmart shareholders' equity
Noncontrolling interest
Beginning balance (in shares) at Jan. 31, 2019   2,878          
Beginning balance at Jan. 31, 2019 $ 79,634 $ 288 $ 2,965 $ 80,785 $ (11,542) $ 72,496 $ 7,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Adoption of new accounting standards on February 1, 2019, net of income taxes (300)     (266)   (266) (34)
Consolidated net income 3,906     3,842   3,842 64
Other comprehensive income (loss), net of income taxes 485       451 451 34
Dividends declared (6,071)     (6,071)   (6,071)  
Purchase of Company stock (in shares)   (21)          
Purchase of Company stock (2,087) $ (2) (73) (2,012)   (2,087)  
Dividends declared to noncontrolling interest (481)           (481)
Other (in shares)   5          
Other (176)   (158) (2)   (160) (16)
Ending balance (in shares) at Apr. 30, 2019   2,862          
Ending balance at Apr. 30, 2019 74,910 $ 286 2,734 76,276 (11,091) 68,205 6,705
Beginning balance (in shares) at Jan. 31, 2019   2,878          
Beginning balance at Jan. 31, 2019 79,634 $ 288 2,965 80,785 (11,542) 72,496 7,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 7,586            
Other comprehensive income (loss), net of income taxes 390            
Ending balance (in shares) at Jul. 31, 2019   2,847          
Ending balance at Jul. 31, 2019 77,131 $ 285 2,880 78,432 (11,270) 70,327 6,804
Beginning balance (in shares) at Apr. 30, 2019   2,862          
Beginning balance at Apr. 30, 2019 74,910 $ 286 2,734 76,276 (11,091) 68,205 6,705
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 3,680     3,610   3,610 70
Other comprehensive income (loss), net of income taxes (95)       (179) (179) 84
Dividends declared 15     15   15  
Purchase of Company stock (in shares)   (15)          
Purchase of Company stock (1,555) $ (2) (54) (1,499)   (1,555)  
Dividends declared to noncontrolling interest 6           6
Other 170 $ 1 200 30   231 (61)
Ending balance (in shares) at Jul. 31, 2019   2,847          
Ending balance at Jul. 31, 2019 77,131 $ 285 2,880 78,432 (11,270) 70,327 6,804
Beginning balance (in shares) at Jan. 31, 2020   2,832          
Beginning balance at Jan. 31, 2020 81,552 $ 284 3,247 83,943 (12,805) 74,669 6,883
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 4,074     3,990   3,990 84
Other comprehensive income (loss), net of income taxes (4,075)       (3,363) (3,363) (712)
Dividends declared (6,117)     (6,117)   (6,117)  
Purchase of Company stock (in shares)   (6)          
Purchase of Company stock (693) $ (1) (26) (666)   (693)  
Dividends declared to noncontrolling interest (359)           (359)
Other (in shares)   6          
Other (272) $ 1 (238) (9)   (246) (26)
Ending balance (in shares) at Apr. 30, 2020   2,832          
Ending balance at Apr. 30, 2020 74,110 $ 284 2,983 81,141 (16,168) 68,240 5,870
Beginning balance (in shares) at Jan. 31, 2020   2,832          
Beginning balance at Jan. 31, 2020 81,552 $ 284 3,247 83,943 (12,805) 74,669 6,883
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 10,513            
Other comprehensive income (loss), net of income taxes (3,639)            
Ending balance (in shares) at Jul. 31, 2020   2,834          
Ending balance at Jul. 31, 2020 81,197 $ 283 3,197 87,614 (15,784) 75,310 5,887
Beginning balance (in shares) at Apr. 30, 2020   2,832          
Beginning balance at Apr. 30, 2020 74,110 $ 284 2,983 81,141 (16,168) 68,240 5,870
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 6,439     6,476   6,476 (37)
Other comprehensive income (loss), net of income taxes 436       384 384 52
Dividends declared to noncontrolling interest (3)           (3)
Other (in shares)   2          
Other 215 $ (1) 214 (3)   210 5
Ending balance (in shares) at Jul. 31, 2020   2,834          
Ending balance at Jul. 31, 2020 $ 81,197 $ 283 $ 3,197 $ 87,614 $ (15,784) $ 75,310 $ 5,887
v3.20.2
Consolidated Statement Of Shareholders' Equity (Parenthetical) - $ / shares
3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Statement of Stockholders' Equity [Abstract]        
Dividends declared (in dollars per share) $ 0 $ 0 $ 2.16 $ 2.12
v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Cash flows from operating activities:    
Consolidated net income $ 10,513 $ 7,586
Adjustments to reconcile consolidated net income to net cash provided by operating activities:    
Depreciation and amortization 5,562 5,436
Unrealized (gains) and losses (4,006) (731)
Loss on disposal of business operations 37 0
Deferred income taxes 472 241
Other operating activities 305 348
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:    
Receivables, net 823 978
Inventories 2,466 220
Accounts payable 1,052 (1,242)
Accrued liabilities 1,428 (1,657)
Accrued income taxes 304 6
Net cash provided by operating activities 18,956 11,185
Cash flows from investing activities:    
Payments for property and equipment (3,569) (4,871)
Proceeds from the disposal of property and equipment 83 128
Proceeds from the disposal of certain operations 0 833
Payments for business acquisitions, net of cash acquired (175) (56)
Other investing activities 27 142
Net cash used in investing activities (3,634) (3,824)
Cash flows from financing activities:    
Net change in short-term borrowings (178) (1,564)
Proceeds from issuance of long-term debt 0 4,020
Repayments of long-term debt (2,937) (407)
Dividends paid (3,058) (3,036)
Purchase of Company stock (723) (3,707)
Dividends paid to noncontrolling interest (66) (259)
Other financing activities (852) (578)
Net cash used in financing activities (7,814) (5,531)
Effect of exchange rates on cash, cash equivalents and restricted cash (69) (266)
Net increase in cash, cash equivalents and restricted cash 7,439 1,564
Cash, cash equivalents and restricted cash at beginning of year 9,515 7,756
Cash, cash equivalents and restricted cash at end of period $ 16,954 $ 9,320
v3.20.2
Summary of Significant Accounting Policies (Notes)
6 Months Ended
Jul. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The Condensed Consolidated Financial Statements of Walmart Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2020 ("fiscal 2020"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of July related to the operations consolidated using a lag that materially affected the Condensed Consolidated Financial Statements.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with GAAP. Those principles require management to make estimates and assumptions, including potential impacts arising from the COVID-19 pandemic and related government actions, that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from those estimates.
Receivables
In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments–Credit Losses (Topic 326), which modifies the measurement of expected credit losses of certain financial instruments. The Company adopted this ASU on February 1, 2020 with no material impact to the Company's Condensed Consolidated Financial Statements.
Receivables are stated at their carrying values, net of a reserve for credit losses, and are primarily due from the following: customers, which also includes insurance companies resulting from pharmacy sales, banks for customer credit, debit cards and electronic transfer transactions that take in excess of seven days to process; suppliers for marketing or incentive programs; governments for income taxes; and real estate transactions.
v3.20.2
Net Income Per Common Share (Notes)
6 Months Ended
Jul. 31, 2020
Earnings Per Share [Abstract]  
Net Income Per Common Share Net Income Per Common Share
Basic net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period. Diluted net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did not have significant share-based awards outstanding that were anti-dilutive and not included in the calculation of diluted net income per common share attributable to Walmart for the three and six months ended July 31, 2020 and 2019.
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net income per common share attributable to Walmart:
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
(Amounts in millions, except per share data)
 
2020
 
2019
 
2020
 
2019
Numerator
 
 
 
 
 
 
 
 
Consolidated net income
 
$
6,439

 
$
3,680

 
$
10,513

 
$
7,586

Consolidated net (income) loss attributable to noncontrolling interest
 
37

 
(70
)
 
(47
)
 
(134
)
Consolidated net income attributable to Walmart
 
$
6,476

 
$
3,610

 
$
10,466

 
$
7,452

 
 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
2,832

 
2,853

 
2,832

 
2,861

Dilutive impact of share-based awards
 
16

 
16

 
16

 
17

Weighted-average common shares outstanding, diluted
 
2,848

 
2,869

 
2,848

 
2,878

 
 
 
 
 
 
 
 
 
Net income per common share attributable to Walmart
 
 
 
 
 
 
 
 
Basic
 
$
2.29

 
$
1.27

 
$
3.70

 
$
2.60

Diluted
 
2.27

 
1.26

 
3.67

 
2.59


v3.20.2
Accumulated Other Comprehensive Loss (Notes)
6 Months Ended
Jul. 31, 2020
Other Comprehensive Income (Loss), Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2020 and July 31, 2020, respectively:
(Amounts in millions and net of immaterial income taxes)
 
Currency 
Translation and Other
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension 
Liability
 
Total
Balances as of February 1, 2020
 
$
(11,827
)
 
$
1,517

 
$
(539
)
 
$
(1,956
)
 
$
(12,805
)
Other comprehensive income (loss) before reclassifications, net
 
(3,256
)
 
157

 
(295
)
 
(4
)
 
(3,398
)
Reclassifications to income, net
 

 

 
16

 
19

 
35

Balances as of April 30, 2020
 
$
(15,083
)
 
$
1,674

 
$
(818
)
 
$
(1,941
)
 
$
(16,168
)
Other comprehensive income (loss) before reclassifications, net
 
246

 
(191
)
 
303

 
(2
)
 
356

Reclassifications to income, net
 

 

 
10

 
18

 
28

Balances as of July 31, 2020
 
$
(14,837
)
 
$
1,483

 
$
(505
)
 
$
(1,925
)
 
$
(15,784
)
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2019 and July 31, 2019, respectively:
(Amounts in millions and net of immaterial income taxes)
 
Currency 
Translation and Other
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension 
Liability
 
Total
Balances as of February 1, 2019
 
$
(12,085
)
 
$
1,395

 
$
(140
)
 
$
(712
)
 
$
(11,542
)
Other comprehensive income (loss) before reclassifications, net
 
496

 
108

 
(145
)
 
(7
)
 
452

Reclassifications to income, net
 
(23
)
 

 
14

 
8

 
(1
)
Balances as of April 30, 2019
 
$
(11,612
)
 
$
1,503

 
$
(271
)
 
$
(711
)
 
$
(11,091
)
Other comprehensive income (loss) before reclassifications, net
 
(165
)
 
140

 
(172
)
 
(5
)
 
(202
)
Reclassifications to income, net
 

 

 
14

 
9

 
23

Balances as of July 31, 2019
 
$
(11,777
)
 
$
1,643

 
$
(429
)
 
$
(707
)
 
$
(11,270
)
Amounts reclassified from accumulated other comprehensive loss to net income for derivative instruments are recorded in interest, net, in the Company's Condensed Consolidated Statements of Income. Amounts reclassified from accumulated other comprehensive loss to net income for the minimum pension liability, as well as the cumulative translation resulting from the disposition of a business, are recorded in other gains and losses in the Company's Condensed Consolidated Statements of Income. Amounts related to the Company's derivatives expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months are not significant.
v3.20.2
Short-term Borrowings and Long-term Debt (Notes)
6 Months Ended
Jul. 31, 2020
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt
The Company has various committed lines of credit in the U.S. that are used to support its commercial paper program. In April 2020, the Company renewed and extended its existing 364-day revolving credit facility of $10.0 billion. In total, the Company had committed lines of credit in the U.S. of $15.0 billion at July 31, 2020 and January 31, 2020, all undrawn.
The following table provides the changes in the Company's long-term debt for the six months ended July 31, 2020:
(Amounts in millions)
 
Long-term debt due within one year
 
Long-term debt
 
Total
Balances as of February 1, 2020
 
$
5,362


$
43,714


$
49,076

Repayments of long-term debt
 
(2,937
)



(2,937
)
Reclassifications of long-term debt
 
3,125


(3,125
)


Other
 
3


370


373

Balances as of July 31, 2020
 
$
5,553


$
40,959


$
46,512


v3.20.2
Fair Value Measurements (Notes)
6 Months Ended
Jul. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
Level 1: observable inputs such as quoted prices in active markets;
Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.
The Company measures the fair value of equity investments (primarily its investment in JD.com) on a recurring basis and records them in other long-term assets in the accompanying Condensed Consolidated Balance Sheets.
The fair value of the Company's equity investments are as follows:
(Amounts in millions)
 
Fair Value as of July 31, 2020
 
Fair Value as of January 31, 2020
Equity investments measured using Level 1 inputs
 
$
4,689

 
$
2,715

Equity investments measured using Level 2 inputs
 
5,204

 
2,723

Total
 
$
9,893

 
$
5,438


Derivatives
The Company also has derivatives recorded at fair value. Derivative fair values are the estimated amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward curves. As of July 31, 2020 and January 31, 2020, the notional amounts and fair values of these derivatives were as follows:
 
July 31, 2020
 
January 31, 2020
 
(Amounts in millions)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
 
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges
$
4,000

 
$
205

(1) 
$
4,000

 
$
97

(1) 
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges
3,500

 
471

(1) 
3,750

 
455

(1) 
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges
4,271

 
(748
)
(2) 
4,067

 
(696
)
(2) 
Total
$
11,771

 
$
(72
)
 
$
11,817

 
$
(144
)
 

(1) 
Classified in Other long-term assets within the Company's Condensed Consolidated Balance Sheets.
(2) 
Classified in Deferred income taxes and other within the Company's Condensed Consolidated Balance Sheets.
Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company did not have any material assets or liabilities subject to nonrecurring fair value measurements as of July 31, 2020.
Other Fair Value Disclosures
The Company records cash and cash equivalents, restricted cash, and short-term borrowings at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities.
The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the Company's current incremental borrowing rate for similar types of borrowing arrangements. The carrying value and fair value of the Company's long-term debt as of July 31, 2020 and January 31, 2020, are as follows: 
 
 
July 31, 2020
 
January 31, 2020
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
46,512

 
$
58,357

 
$
49,076

 
$
57,769


v3.20.2
Contingencies (Notes)
6 Months Ended
Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
Legal Proceedings
The Company is involved in a number of legal proceedings. The Company has made accruals with respect to these matters, where appropriate, which are reflected in the Company's Condensed Consolidated Financial Statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. However, where a liability is reasonably possible and may be material, such matters have been disclosed. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company and its shareholders.
Unless stated otherwise, the matters discussed below, if decided adversely or settled by the Company, individually or in the aggregate, may result in a liability material to the Company's financial condition, results of operations or cash flows.
ASDA Equal Value Claims
ASDA Stores Ltd. ("Asda"), a wholly-owned subsidiary of the Company, is a defendant in over 40,000 equal value ("Equal Value") claims that began in 2008 and are proceeding before an Employment Tribunal in Manchester (the "Employment Tribunal") in the United Kingdom ("U.K.") on behalf of current and former Asda store employees, and further claims may be asserted in the future. The claimants allege that the work performed by employees in Asda's retail stores is of equal value in terms of, among other things, the demands of their jobs compared to that of employees working in Asda's warehouse and distribution facilities, and that the difference in pay between these job positions disparately impacts women because more women work in retail stores while more men work in warehouses and distribution facilities, and that the pay difference is not objectively justified. The claimants are requesting differential back pay based on higher wage rates in the warehouse and distribution facilities and higher wage rates on a prospective basis.
In October 2016, following a preliminary hearing, the Employment Tribunal ruled that claimants could compare their positions in Asda's retail stores with those of employees in Asda's warehouse and distribution facilities. Asda appealed the ruling and the oral argument was held before the Supreme Court of the United Kingdom in July 2020. The Company is awaiting a decision.
Notwithstanding the appeal, claimants are proceeding in the next phase of their claims. That phase will determine whether the work performed by the claimants is of equal value to the work performed by employees in Asda's warehouse and distribution facilities.
At present, the Company cannot predict the number of such claims that may be filed, and cannot reasonably estimate any loss or range of loss that may arise from these proceedings. Accordingly, the Company can provide no assurance as to the scope and outcomes of these matters and no assurance as to whether its business, financial position, results of operations or cash flows will not be materially adversely affected. The Company believes it has substantial factual and legal defenses to these claims, and intends to defend the claims vigorously.
Prescription Opiate Litigation and Other Matters
In December 2017, the U.S. Judicial Panel on Multidistrict Litigation consolidated numerous lawsuits filed against a wide array of defendants by various plaintiffs, including counties, cities, healthcare providers, Native American tribes, individuals, and third-party payors, asserting claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation entitled In re National Prescription Opiate Litigation (MDL No. 2804), is pending in the U.S. District Court for the Northern District of Ohio. The Company is named as a defendant in some of the cases included in this multidistrict litigation. Similar cases that name the Company have also been filed in state courts by state, local and tribal governments, health care providers and other plaintiffs. Plaintiffs are seeking compensatory and punitive damages, as well as injunctive relief including abatement.  The Company cannot predict the number of such claims that may be filed, but believes it has substantial factual and legal defenses to these claims, and intends to defend the claims vigorously. The Company has also been responding to subpoenas, information requests and investigations from governmental entities related to nationwide controlled substance dispensing and distribution practices involving opioids. The Company cannot reasonably estimate any loss or range of loss that may arise from these matters. Accordingly, the Company can provide no assurance as to the scope and outcome of these matters and no assurance as to whether its business, financial position, results of operations or cash flows will not be materially adversely affected.
v3.20.2
Segments and Disaggregated Revenue (Notes)
6 Months Ended
Jul. 31, 2020
Segment Reporting Information, Profit (Loss) [Abstract]  
Segments and Disaggregated Revenue Segments and Disaggregated Revenue
Segments
The Company is engaged in the operation of retail, wholesale and other units, as well as eCommerce websites, located throughout the U.S., Africa, Argentina, Canada, Central America, Chile, China, India, Japan, Mexico, and the United Kingdom. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services.
The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce and omni-channel initiatives. The Walmart International segment consists of the Company's operations outside of the U.S., as well as eCommerce and omni-channel initiatives. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments.
The Company measures the results of its segments using, among other measures, each segment's net sales and operating income, which includes certain corporate overhead allocations. From time to time, the Company revises the measurement of each segment's operating income, including any corporate overhead allocations, as determined by the information regularly reviewed by its CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation. Beginning with the first quarter in fiscal 2021, the Company revised its definition of eCommerce net sales to include certain pharmacy transactions and, accordingly, revised prior period amounts to maintain comparability.
Net sales by segment are as follows:
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
(Amounts in millions)
 
2020

2019
 
2020

2019
Net sales:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
93,282

 
$
85,200

 
$
182,025

 
$
165,544

Walmart International
 
27,167

 
29,139

 
56,933

 
57,914

Sam's Club
 
16,375

 
15,049

 
31,538

 
28,879

Net sales
 
$
136,824

 
$
129,388

 
$
270,496

 
$
252,337


Operating income by segment, as well as operating loss for corporate and support, interest, net and other gains and losses are as follows:
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
(Amounts in millions)
 
2020
 
2019
 
2020
 
2019
Operating income (loss):
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
5,057

 
$
4,659

 
$
9,359

 
$
8,801

Walmart International
 
812

 
893

 
1,618

 
1,631

Sam's Club
 
592

 
480

 
1,086

 
931

Corporate and support
 
(402
)
 
(449
)
 
(780
)
 
(835
)
Operating income
 
6,059

 
5,583

 
11,283

 
10,528

Interest, net
 
635

 
585

 
1,184

 
1,210

Other (gains) and losses
 
(3,222
)
 
85

 
(3,943
)
 
(752
)
Income before income taxes
 
$
8,646

 
$
4,913

 
$
14,042

 
$
10,070


Disaggregated Revenues
In the following tables, segment net sales are disaggregated by either merchandise category or by market. From time to time, the Company revises the assignment of net sales of a particular item to a merchandise category. When the assignment changes, previous period amounts are reclassified to be comparable to the current period's presentation.
In addition, net sales related to eCommerce are provided for each segment, which include omni-channel sales, where a customer initiates an order digitally and the order is fulfilled through a store or club.
(Amounts in millions)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
Walmart U.S. net sales by merchandise category
 
2020
 
2019
 
2020
 
2019
Grocery
 
$
51,545

 
$
48,196

 
$
104,466

 
$
94,395

General merchandise
 
31,682

 
27,246

 
57,148

 
51,637

Health and wellness
 
9,154

 
8,949

 
18,754

 
17,888

Other categories
 
901

 
809

 
1,657

 
1,624

Total
 
$
93,282

 
$
85,200

 
$
182,025

 
$
165,544


Of Walmart U.S.'s total net sales, approximately $10.5 billion and $5.4 billion related to eCommerce for the three months ended July 31, 2020 and 2019, respectively. Approximately $18.8 billion and $10.1 billion related to eCommerce for the six months ended July 31, 2020 and 2019, respectively.
(Amounts in millions)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
Walmart International net sales by market
 
2020
 
2019
 
2020
 
2019
Mexico and Central America
 
$
7,208

 
$
8,014

 
$
15,704

 
$
15,852

United Kingdom
 
6,698

 
7,316

 
13,830

 
14,393

Canada
 
5,127

 
4,635

 
9,413

 
8,758

China
 
2,579

 
2,428

 
5,947

 
5,491

Other
 
5,555

 
6,746

 
12,039

 
13,420

Total
 
$
27,167

 
$
29,139

 
$
56,933

 
$
57,914


Of Walmart International's total net sales, approximately $3.3 billion and $2.6 billion related to eCommerce for the three months ended July 31, 2020 and 2019, respectively. Approximately $6.2 billion and $5.1 billion related to eCommerce for the six months ended July 31, 2020 and 2019, respectively.
(Amounts in millions)
 
Three Months Ended July 31,

Six Months Ended July 31,
Sam’s Club net sales by merchandise category
 
2020
 
2019

2020
 
2019
Grocery and consumables
 
$
10,715

 
$
8,931

 
$
21,076

 
$
17,251

Fuel, tobacco and other categories
 
2,068

 
2,863

 
4,081

 
5,481

Home and apparel
 
1,953

 
1,763

 
3,233

 
3,193

Health and wellness
 
931

 
842

 
1,832

 
1,669

Technology, office and entertainment
 
708

 
650

 
1,316

 
1,285

Total
 
$
16,375

 
$
15,049

 
$
31,538

 
$
28,879


Of Sam's Club's total net sales, approximately $1.3 billion and $1.0 billion related to eCommerce for the three months ended July 31, 2020 and 2019, respectively. Approximately $2.3 billion and $1.7 billion related to eCommerce for the six months ended July 31, 2020 and 2019, respectively.
v3.20.2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jul. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation
The Condensed Consolidated Financial Statements of Walmart Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2020 ("fiscal 2020"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of July related to the operations consolidated using a lag that materially affected the Condensed Consolidated Financial Statements.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Use of Estimates
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with GAAP. Those principles require management to make estimates and assumptions, including potential impacts arising from the COVID-19 pandemic and related government actions, that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from those estimates.
New Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments–Credit Losses (Topic 326), which modifies the measurement of expected credit losses of certain financial instruments. The Company adopted this ASU on February 1, 2020 with no material impact to the Company's Condensed Consolidated Financial Statements.
Receivables Receivables are stated at their carrying values, net of a reserve for credit losses, and are primarily due from the following: customers, which also includes insurance companies resulting from pharmacy sales, banks for customer credit, debit cards and electronic transfer transactions that take in excess of seven days to process; suppliers for marketing or incentive programs; governments for income taxes; and real estate transactions.
v3.20.2
Net Income Per Common Share (Tables)
6 Months Ended
Jul. 31, 2020
Earnings Per Share [Abstract]  
Schedule of calculation of numerator and denominator in earnings per share
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net income per common share attributable to Walmart:
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
(Amounts in millions, except per share data)
 
2020
 
2019
 
2020
 
2019
Numerator
 
 
 
 
 
 
 
 
Consolidated net income
 
$
6,439

 
$
3,680

 
$
10,513

 
$
7,586

Consolidated net (income) loss attributable to noncontrolling interest
 
37

 
(70
)
 
(47
)
 
(134
)
Consolidated net income attributable to Walmart
 
$
6,476

 
$
3,610

 
$
10,466

 
$
7,452

 
 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
2,832

 
2,853

 
2,832

 
2,861

Dilutive impact of share-based awards
 
16

 
16

 
16

 
17

Weighted-average common shares outstanding, diluted
 
2,848

 
2,869

 
2,848

 
2,878

 
 
 
 
 
 
 
 
 
Net income per common share attributable to Walmart
 
 
 
 
 
 
 
 
Basic
 
$
2.29

 
$
1.27

 
$
3.70

 
$
2.60

Diluted
 
2.27

 
1.26

 
3.67

 
2.59


v3.20.2
Accumulated Other Comprehensive Loss (Tables)
6 Months Ended
Jul. 31, 2020
Other Comprehensive Income (Loss), Tax [Abstract]  
Composition of accumulated other comprehensive loss
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2020 and July 31, 2020, respectively:
(Amounts in millions and net of immaterial income taxes)
 
Currency 
Translation and Other
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension 
Liability
 
Total
Balances as of February 1, 2020
 
$
(11,827
)
 
$
1,517

 
$
(539
)
 
$
(1,956
)
 
$
(12,805
)
Other comprehensive income (loss) before reclassifications, net
 
(3,256
)
 
157

 
(295
)
 
(4
)
 
(3,398
)
Reclassifications to income, net
 

 

 
16

 
19

 
35

Balances as of April 30, 2020
 
$
(15,083
)
 
$
1,674

 
$
(818
)
 
$
(1,941
)
 
$
(16,168
)
Other comprehensive income (loss) before reclassifications, net
 
246

 
(191
)
 
303

 
(2
)
 
356

Reclassifications to income, net
 

 

 
10

 
18

 
28

Balances as of July 31, 2020
 
$
(14,837
)
 
$
1,483

 
$
(505
)
 
$
(1,925
)
 
$
(15,784
)
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2019 and July 31, 2019, respectively:
(Amounts in millions and net of immaterial income taxes)
 
Currency 
Translation and Other
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension 
Liability
 
Total
Balances as of February 1, 2019
 
$
(12,085
)
 
$
1,395

 
$
(140
)
 
$
(712
)
 
$
(11,542
)
Other comprehensive income (loss) before reclassifications, net
 
496

 
108

 
(145
)
 
(7
)
 
452

Reclassifications to income, net
 
(23
)
 

 
14

 
8

 
(1
)
Balances as of April 30, 2019
 
$
(11,612
)
 
$
1,503

 
$
(271
)
 
$
(711
)
 
$
(11,091
)
Other comprehensive income (loss) before reclassifications, net
 
(165
)
 
140

 
(172
)
 
(5
)
 
(202
)
Reclassifications to income, net
 

 

 
14

 
9

 
23

Balances as of July 31, 2019
 
$
(11,777
)
 
$
1,643

 
$
(429
)
 
$
(707
)
 
$
(11,270
)
v3.20.2
Short-term Borrowings and Long-term Debt (Tables)
6 Months Ended
Jul. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]
The following table provides the changes in the Company's long-term debt for the six months ended July 31, 2020:
(Amounts in millions)
 
Long-term debt due within one year
 
Long-term debt
 
Total
Balances as of February 1, 2020
 
$
5,362


$
43,714


$
49,076

Repayments of long-term debt
 
(2,937
)



(2,937
)
Reclassifications of long-term debt
 
3,125


(3,125
)


Other
 
3


370


373

Balances as of July 31, 2020
 
$
5,553


$
40,959


$
46,512


v3.20.2
Fair Value Measurements (Tables)
6 Months Ended
Jul. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements, Recurring and Nonrecurring
The fair value of the Company's equity investments are as follows:
(Amounts in millions)
 
Fair Value as of July 31, 2020
 
Fair Value as of January 31, 2020
Equity investments measured using Level 1 inputs
 
$
4,689

 
$
2,715

Equity investments measured using Level 2 inputs
 
5,204

 
2,723

Total
 
$
9,893

 
$
5,438


Notional amounts and fair values of derivatives As of July 31, 2020 and January 31, 2020, the notional amounts and fair values of these derivatives were as follows:
 
July 31, 2020
 
January 31, 2020
 
(Amounts in millions)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
 
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges
$
4,000

 
$
205

(1) 
$
4,000

 
$
97

(1) 
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges
3,500

 
471

(1) 
3,750

 
455

(1) 
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges
4,271

 
(748
)
(2) 
4,067

 
(696
)
(2) 
Total
$
11,771

 
$
(72
)
 
$
11,817

 
$
(144
)
 

(1) 
Classified in Other long-term assets within the Company's Condensed Consolidated Balance Sheets.
(2) 
Classified in Deferred income taxes and other within the Company's Condensed Consolidated Balance Sheets.
Carrying value and fair value of long-term debt The carrying value and fair value of the Company's long-term debt as of July 31, 2020 and January 31, 2020, are as follows: 
 
 
July 31, 2020
 
January 31, 2020
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
46,512

 
$
58,357

 
$
49,076

 
$
57,769


v3.20.2
Segments and Disaggregated Revenue (Tables)
6 Months Ended
Jul. 31, 2020
Disaggregation of Revenue [Line Items]  
Segment Net Sales
Net sales by segment are as follows:
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
(Amounts in millions)
 
2020

2019
 
2020

2019
Net sales:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
93,282

 
$
85,200

 
$
182,025

 
$
165,544

Walmart International
 
27,167

 
29,139

 
56,933

 
57,914

Sam's Club
 
16,375

 
15,049

 
31,538

 
28,879

Net sales
 
$
136,824

 
$
129,388

 
$
270,496

 
$
252,337


Operating Income by Segment, Interest, Net, and Unrealized (Gains) and Losses
Operating income by segment, as well as operating loss for corporate and support, interest, net and other gains and losses are as follows:
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
(Amounts in millions)
 
2020
 
2019
 
2020
 
2019
Operating income (loss):
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
5,057

 
$
4,659

 
$
9,359

 
$
8,801

Walmart International
 
812

 
893

 
1,618

 
1,631

Sam's Club
 
592

 
480

 
1,086

 
931

Corporate and support
 
(402
)
 
(449
)
 
(780
)
 
(835
)
Operating income
 
6,059

 
5,583

 
11,283

 
10,528

Interest, net
 
635

 
585

 
1,184

 
1,210

Other (gains) and losses
 
(3,222
)
 
85

 
(3,943
)
 
(752
)
Income before income taxes
 
$
8,646

 
$
4,913

 
$
14,042

 
$
10,070


Walmart U.S.  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
(Amounts in millions)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
Walmart U.S. net sales by merchandise category
 
2020
 
2019
 
2020
 
2019
Grocery
 
$
51,545

 
$
48,196

 
$
104,466

 
$
94,395

General merchandise
 
31,682

 
27,246

 
57,148

 
51,637

Health and wellness
 
9,154

 
8,949

 
18,754

 
17,888

Other categories
 
901

 
809

 
1,657

 
1,624

Total
 
$
93,282

 
$
85,200

 
$
182,025

 
$
165,544


Walmart International  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
(Amounts in millions)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
Walmart International net sales by market
 
2020
 
2019
 
2020
 
2019
Mexico and Central America
 
$
7,208

 
$
8,014