WALMART INC., 10-K filed on 3/20/2020
Annual Report
v3.20.1
Document And Entity Information - USD ($)
12 Months Ended
Jan. 31, 2020
Mar. 18, 2020
Jul. 31, 2019
Entity Registrant Name WALMART INC.    
Entity Central Index Key 0000104169    
Document Type 10-K    
Current Fiscal Year End Date --01-31    
Document Period End Date Jan. 31, 2020    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Document Annual Report true    
Document Transition Report false    
Entity File Number 001-6991    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 71-0415188    
City Area Code 479    
Local Phone Number 273-4000    
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    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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 Public Float     $ 155,125,468,742
Entity Common Stock, Shares Outstanding   2,832,277,220  
Amendment Flag false    
2.550% Notes Due 2026 [Member]      
Title of 12(b) Security 2.550% Notes Due 2026    
Trading Symbol WMT26    
Security Exchange Name NYSE    
1.900% Notes Due 2022 [Member]      
Title of 12(b) Security 1.900% Notes Due 2022    
Trading Symbol WMT22    
Security Exchange Name NYSE    
Common Stock, par value $0.10 per share [Member]      
Title of 12(b) Security Common Stock, par value $0.10 per share    
Trading Symbol WMT    
Security Exchange Name NYSE    
v3.20.1
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2018
Revenues:      
Net Sales $ 519,926 $ 510,329 $ 495,761
Membership and other income 4,038 4,076 4,582
Total revenues 523,964 514,405 500,343
Costs and expenses:      
Cost of sales 394,605 385,301 373,396
Operating, selling, general and administrative expenses 108,791 107,147 106,510
Operating income 20,568 21,957 20,437
Interest:      
Debt 2,262 1,975 1,978
Finance, capital lease and financing obligations 337 371 352
Interest income (189) (217) (152)
Interest, net 2,410 2,129 2,178
Loss on extinguishment of debt 0 0 3,136
Other (gains) and losses (1,958) 8,368 0
Income before income taxes 20,116 11,460 15,123
Provision for income taxes 4,915 4,281 4,600
Consolidated net income 15,201 7,179 10,523
Consolidated net income attributable to noncontrolling interest (320) (509) (661)
Consolidated net income attributable to Walmart $ 14,881 $ 6,670 $ 9,862
Net income per common share:      
Basic net income per common share attributable to Walmart $ 5.22 $ 2.28 $ 3.29
Diluted net income per common share attributable to Walmart $ 5.19 $ 2.26 $ 3.28
Weighted-average common shares outstanding:      
Basic (in shares) 2,850 2,929 2,995
Diluted (in shares) 2,868 2,945 3,010
Dividends declared per common share $ 2.12 $ 2.08 $ 2.04
v3.20.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2018
Consolidated net income $ 15,201 $ 7,179 $ 10,523
Consolidated net income attributable to noncontrolling interest (320) (509) (661)
Consolidated net income attributable to Walmart 14,881 6,670 9,862
Other comprehensive income (loss), net of income taxes      
Currency translation and other 286 (226) 2,540
Net investment hedges 122 272 (405)
Cash flow hedges (399) (290) 437
Minimum pension liability (1,244) 131 147
Unrealized gain on available-for-sale securities 0 0 1,501
Other comprehensive income (loss), net of income taxes (1,235) (113) 4,220
Less other comprehensive income (loss) attributable to noncontrolling interest (28) 188 (169)
Other comprehensive income (loss) attributable to Walmart (1,263) 75 4,051
Comprehensive income, net of income taxes 13,966 7,066 14,743
Comprehensive income attributable to noncontrolling interest (348) (321) (830)
Comprehensive income attributable to Walmart $ 13,618 $ 6,745 $ 13,913
v3.20.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Jan. 31, 2020
Jan. 31, 2019
Current assets:    
Cash and cash equivalents $ 9,465 $ 7,722
Receivables, net 6,284 6,283
Inventories 44,435 44,269
Prepaid expenses and other 1,622 3,623
Total current assets 61,806 61,897
Property and equipment, net 105,208 104,317
Operating lease right-of-use assets 17,424 0
Finance lease right-of-use assets, net 4,417 0
Property under capital lease and financing obligations, net 0 7,078
Goodwill 31,073 31,181
Other long-term assets 16,567 14,822
Total assets 236,495 219,295
Current liabilities:    
Short-term borrowings 575 5,225
Accounts payable 46,973 47,060
Accrued liabilities 22,296 22,159
Accrued income taxes 280 428
Long-term debt due within one year 5,362 1,876
Operating lease obligations due within one year 1,793 0
Finance lease obligations due within one year 511 0
Capital lease and financing obligations due within one year 0 729
Total current liabilities 77,790 77,477
Long-term debt 43,714 43,520
Long-term operating lease obligations 16,171 0
Long-term finance lease obligations 4,307 0
Long-term capital lease and financing obligations 0 6,683
Deferred income taxes and other 12,961 11,981
Commitments and contingencies
Equity:    
Common stock 284 288
Capital in excess of par value 3,247 2,965
Retained earnings 83,943 80,785
Accumulated other comprehensive loss (12,805) (11,542)
Total Walmart shareholders' equity 74,669 72,496
Noncontrolling interest 6,883 7,138
Total equity 81,552 79,634
Total liabilities and equity $ 236,495 $ 219,295
v3.20.1
Consolidated Statement Of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital in excess of par value
Retained earnings
Accumulated other comprehensive income (loss)
Total Walmart shareholders' equity
Noncontrolling interest
Balances, in shares at Jan. 31, 2017   3,048          
Balances at Jan. 31, 2017 $ 80,535 $ 305 $ 2,371 $ 89,354 $ (14,232) $ 77,798 $ 2,737
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 10,523     9,862 0 9,862 661
Other comprehensive income (loss), net of income taxes 4,220     0 4,051 4,051 169
Cash dividends declared (6,124)     (6,124) 0 (6,124) 0
Purchase of Company stock (in shares)   (103)          
Purchase of Company stock (8,204) $ (10) (219) (7,975) 0 (8,204) 0
Cash dividend declared to noncontrolling interest (687)           (687)
Other, in shares   7          
Other 559 $ 0 496 (10) 0 486 73
Balances, in shares at Jan. 31, 2018   2,952          
Balances at Jan. 31, 2018 80,822 $ 295 2,648 85,107 (10,181) 77,869 2,953
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Adoption of new accounting standards, net of income taxes 924     2,361 (1,436) 925 (1)
Consolidated net income 7,179     6,670 0 6,670 509
Other comprehensive income (loss), net of income taxes (113)     0 75 75 (188)
Cash dividends declared (6,102)     (6,102) 0 (6,102) 0
Purchase of Company stock (in shares)   (80)          
Purchase of Company stock (7,487) $ (8) (245) (7,234) 0 (7,487) 0
Cash dividend declared to noncontrolling interest (488)           (488)
Noncontrolling interest of acquired entity 4,345           4,345
Other, in shares   6          
Other 554 $ 1 562 (17) 0 546 8
Balances, in shares at Jan. 31, 2019   2,878          
Balances 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, net of income taxes (300)     (266) 0 (266) (34)
Consolidated net income 15,201     14,881 0 14,881 320
Other comprehensive income (loss), net of income taxes (1,235)     0 (1,263) (1,263) 28
Cash dividends declared (6,048)     (6,048) 0 (6,048) 0
Purchase of Company stock (in shares)   (53)          
Purchase of Company stock (5,639) $ (5) (199) (5,435) 0 (5,639) 0
Cash dividend declared to noncontrolling interest (475)           (475)
Other, in shares   7          
Other 414 $ 1 481 26 0 508 (94)
Balances, in shares at Jan. 31, 2020   2,832          
Balances at Jan. 31, 2020 $ 81,552 $ 284 $ 3,247 $ 83,943 $ (12,805) $ 74,669 $ 6,883
v3.20.1
Consolidated Statement Of Shareholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2018
Statement of Stockholders' Equity [Abstract]      
Dividends declared per common share $ 2.12 $ 2.08 $ 2.04
v3.20.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2018
Cash flows from operating activities:      
Consolidated net income $ 15,201 $ 7,179 $ 10,523
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:      
Depreciation and amortization 10,987 10,678 10,529
Unrealized (gains) and losses (1,886) 3,516 0
(Gains) and losses for disposal of business operations 15 4,850 0
Asda pension contribution (1,036) 0 0
Deferred income taxes 320 (499) (304)
Loss on extinguishment of debt 0 0 3,136
Other operating activities 1,981 1,734 1,210
Changes in certain assets and liabilities, net of effects of acquisitions:      
Receivables, net 154 (368) (1,074)
Inventories (300) (1,311) (140)
Accounts payable (274) 1,831 4,086
Accrued liabilities 186 183 928
Accrued income taxes (93) (40) (557)
Net cash provided by operating activities 25,255 27,753 28,337
Cash flows from investing activities:      
Payments for property and equipment (10,705) (10,344) (10,051)
Proceeds from the disposal of property and equipment 321 519 378
Proceeds from the disposal of certain operations 833 876 1,046
Payments for business acquisitions, net of cash acquired (56) (14,656) (375)
Other investing activities 479 (431) (77)
Net cash used in investing activities (9,128) (24,036) (9,079)
Cash flows from financing activities:      
Net change in short-term borrowings (4,656) (53) 4,148
Proceeds from issuance of long-term debt 5,492 15,872 7,476
Repayments of long-term debt (1,907) (3,784) (13,061)
Premiums paid to extinguish debt 0 0 (3,059)
Dividends paid (6,048) (6,102) (6,124)
Purchase of Company stock (5,717) (7,410) (8,296)
Dividends paid to noncontrolling interest (555) (431) (690)
Purchase of noncontrolling interest 0 0 (8)
Other financing activities (908) (629) (261)
Net cash used in financing activities (14,299) (2,537) (19,875)
Effect of Exchange Rate on Cash, Cash Equivalents, and Restricted Cash (69) (438) 487
Net increase (decrease) in cash, cash equivalents and restricted cash 1,759 742 (130)
Cash, cash equivalents and restricted cash at beginning of year 7,756 7,014 7,144
Cash, cash equivalents and restricted cash at end of year 9,515 7,756 7,014
Supplemental disclosure of cash flow information:      
Income taxes paid 3,616 3,982 6,179
Interest Paid, Excluding Capitalized Interest, Operating Activities $ 2,464 $ 2,348 $ 2,450
v3.20.1
Summary of Significant Accounting Policies
12 Months Ended
Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation Summary of Significant Accounting Policies
General
Walmart Inc. ("Walmart" or the "Company") helps people around the world save money and live better – anytime and anywhere – by providing the opportunity to shop in retail stores and through eCommerce. Through innovation, the Company is striving to continuously improve a customer-centric experience that seamlessly integrates eCommerce and retail stores in an omni-channel offering that saves time for its customers. Each week, the Company serves over 265 million customers who visit approximately 11,500 stores and numerous eCommerce websites under 56 banners in 27 countries.
The Company's operations comprise three reportable segments: Walmart U.S., Walmart International and Sam's Club.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Walmart and its subsidiaries as of and for the fiscal years ended January 31, 2020 ("fiscal 2020"), January 31, 2019 ("fiscal 2019") and January 31, 2018 ("fiscal 2018"). Intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities' operations. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method. These variable interest entities and equity method investments are immaterial to the Company's Consolidated Financial Statements.
The Company's Consolidated Financial Statements are based on a fiscal year ending on 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 January 2020 related to the operations consolidated using a lag that materially affected the Consolidated Financial Statements.
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles. Those principles require management to make estimates and assumptions 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 from those estimates.
Cash and Cash Equivalents
The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. All credit card, debit card and electronic transfer transactions that process in less than seven days are classified as cash and cash equivalents. The amounts due from banks for these transactions classified as cash and cash equivalents totaled $1.7 billion and $1.4 billion as of January 31, 2020 and 2019, respectively.
The Company's cash balances are held in various locations around the world. Most of the Company's $9.5 billion and $7.7 billion of cash and cash equivalents as of January 31, 2020 and January 31, 2019 were held outside of the U.S. Cash and cash equivalents held outside of the U.S. are generally utilized to support liquidity needs in the Company's non-U.S. operations.
The Company uses intercompany financing arrangements in an effort to ensure cash can be made available in the country in which it is needed with the minimum cost possible.
As of January 31, 2020 and 2019, cash and cash equivalents of approximately $2.3 billion and $2.8 billion, respectively, may not be freely transferable to the U.S. due to local laws or other restrictions. Of the $2.3 billion as of January 31, 2020, approximately $0.6 billion can only be accessed through dividends or intercompany financing arrangements subject to approval of Flipkart Private Limited ("Flipkart") minority shareholders; however, this cash is expected to be utilized to fund the operations of Flipkart.
Receivables
Receivables are stated at their carrying values, net of a reserve for doubtful accounts, 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. As of January 31, 2020 and January 31, 2019, receivables from transactions with customers, net were $2.9 billion and $2.5 billion, respectively.
Inventories
The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting, using the last-in, first-out ("LIFO") method for the Walmart U.S. segment's inventories. The inventory for the Walmart International segment is valued primarily by the retail inventory method of accounting, using the first-in, first-out ("FIFO") method. The retail inventory method of accounting results in inventory being valued at the lower of cost or market, since permanent markdowns are immediately recorded as a reduction of the retail value of inventory. The inventory at the Sam's Club segment is valued using the weighted-average cost LIFO method. As of January 31, 2020 and January 31, 2019, the Company's inventories valued at LIFO approximated those inventories as if they were valued at FIFO.
Assets Held for Sale
Assets held for sale represent components and businesses that meet accounting requirements to be classified as held for sale and are presented as single asset and liability amounts in the Company's financial statements with a valuation allowance, if necessary, to recognize the net carrying amount at the lower of cost or fair value, less costs to sell.  The Company reviews all businesses and assets held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values.  As of January 31, 2020 and January 31, 2019, immaterial amounts for assets and liabilities held for sale were classified in prepaid expenses and other and accrued liabilities, respectively, in the Consolidated Balance Sheets.
Property and Equipment
Property and equipment are initially recorded at cost. Gains or losses on disposition are recognized as earned or incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are expensed as incurred. The following table summarizes the Company's property and equipment balances and includes the estimated useful lives that are generally used to depreciate the assets on a straight-line basis:
 
 
 
 
As of January 31,
(Amounts in millions)
 
Estimated Useful Lives
 
2020
 
2019
Land
 
N/A
 
$
24,619

 
$
24,526

Buildings and improvements
 
3-40 years
 
105,674

 
101,006

Fixtures and equipment
 
1-30 years
 
58,607

 
54,488

Transportation equipment
 
3-15 years
 
2,377

 
2,316

Construction in progress
 
N/A
 
3,751

 
3,474

Property and equipment
 
 
 
195,028

 
185,810

Accumulated depreciation
 
 
 
(89,820
)
 
(81,493
)
Property and equipment, net
 
 
 
$
105,208

 
$
104,317


Leasehold improvements are depreciated or amortized over the shorter of the estimated useful life of the asset or the remaining expected lease term. Total depreciation and amortization expense for property and equipment, property under finance leases and financing obligations, property under capital leases and intangible assets for fiscal 2020, 2019 and 2018 was $11.0 billion, $10.7 billion and $10.5 billion, respectively.
Leases
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lease assets and liabilities to be recorded on the balance sheet.  The Company adopted this ASU and related amendments as of February 1, 2019 under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification as well as relief from reviewing expired or existing contracts to determine if they contain leases.  For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption.
The adoption of this ASU and related amendments resulted in a $14.8 billion increase to total assets and a $15.1 billion increase to total liabilities in the first quarter of fiscal 2020. In the first quarter of fiscal 2020, the Company recognized $16.8 billion and $17.5 billion of operating lease right-of-use assets and operating lease obligations, respectively, and removed $2.2 billion and $1.7 billion, respectively, of assets and liabilities related to financial obligations connected with the construction of leased stores. Several other asset and liability line items in the Company's Consolidated Balance Sheet were also impacted by immaterial amounts. Additionally, the adoption resulted in a cumulative-effect adjustment to retained earnings of approximately $0.3 billion, net of tax, which primarily consisted of the recognition of impairment. The Company’s Consolidated Statement of Income and Consolidated Statement of Cash Flows were immaterially impacted. Accounting policies as a result of the adoption of this ASU are described below.  Refer to Note 7 for additional lease disclosures.
For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are
initially recognized based on the discounted future lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments.
Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.
For a majority of all classes of underlying assets, the Company has elected to not separate lease from non-lease components. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance.
Impairment of Long-Lived Assets
Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows, which is at the individual store or club level. Undiscounted cash flows expected to be generated by the related assets are estimated over the assets' useful lives based on updated projections. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique.
Goodwill and Other Acquired Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is allocated to the appropriate reporting unit when acquired. Other acquired intangible assets are stated at the fair value acquired as determined by a valuation technique commensurate with the intended use of the related asset. Goodwill and indefinite-lived intangible assets are not amortized; rather, they are evaluated for impairment annually and whenever events or changes in circumstances indicate that the value of the asset may be impaired. Definite-lived intangible assets are considered long-lived assets and are amortized on a straight-line basis over the periods that expected economic benefits will be provided.
Goodwill is assigned to the reporting unit which consolidates the acquisition. Components within the same reportable segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of January 31, 2020, the Company's reporting units consisted of Walmart U.S., Walmart International and Sam's Club. Goodwill is evaluated for impairment using either a qualitative or quantitative approach for each of the Company's reporting units. Generally, a qualitative assessment is first performed to determine whether a quantitative goodwill impairment test is necessary. If management determines, after performing an assessment based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, or that a fair value of the reporting unit substantially in excess of the carrying amount cannot be assured, then a quantitative goodwill impairment test would be required. The quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. Fair value is measured based on the discounted cash flow method and relative market-based approaches. After evaluation, management determined the fair value of each reporting unit is significantly greater than the carrying amount and, accordingly, the Company has not recorded any impairment charges related to goodwill.
The following table reflects goodwill activity, by reportable segment, for fiscal 2020 and 2019:
(Amounts in millions)
 
Walmart U.S.
 
Walmart
International
 
Sam's Club
 
Total
Balances as of February 1, 2018
 
$
2,445

 
$
15,484

 
$
313

 
$
18,242

Changes in currency translation and other
 

 
(743
)
 

 
(743
)
Acquisitions (1)
 
107

 
13,575

 

 
13,682

Balances as of January 31, 2019
 
2,552

 
28,316

 
313

 
31,181

Changes in currency translation and other
 

 
(149
)
 

 
(149
)
Acquisitions
 
41

 

 

 
41

Balances as of January 31, 2020
 
$
2,593

 
$
28,167

 
$
313

 
$
31,073


(1) Goodwill recorded in fiscal 2019 for Walmart International relates to Flipkart.
Intangible assets are included in other long-term assets in the Company's Consolidated Balance Sheets. As of January 31, 2020 and 2019, the Company had $5.2 billion and $5.8 billion, respectively, in indefinite-lived intangible assets which is primarily made up of acquired trade names. Refer to Note 12 for additional information related to acquired intangible assets for the Flipkart acquisition. During fiscal 2020, the Company incurred approximately $0.7 billion in impairment charges related to its intangible assets. There were no significant impairment charges related to intangible assets for fiscal 2019 and 2018. Refer to Note 8 for additional information.
Fair Value Measurement
In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-01, Financial Instruments–Overall (Topic 825), which updated certain aspects of recognition, measurement, presentation and disclosure of financial instruments ("ASU 2016-01"). The Company adopted this ASU on February 1, 2018, which primarily impacted the Company's accounting for its investment in JD.com, Inc. ("JD") and resulted in a positive adjustment to retained earnings of approximately $2.6 billion, net of tax, in fiscal 2019 based on the market value of the Company's investment in JD as of January 31, 2018. The adoption required prospective changes in fair value of the Company's investment in JD to be recorded in the Consolidated Statement of Income, which the Company classifies in other gains and losses.
The Company records and discloses certain financial and non-financial assets and liabilities at fair value. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. The fair value of a liability is the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor. Refer to Note 8 for more information.
Self Insurance Reserves
The Company self-insures a number of risks, including, but not limited to, workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits. Standard actuarial procedures and data analysis are used to estimate the liabilities associated with these risks as of the balance sheet date on an undiscounted basis. The recorded liabilities reflect the ultimate cost for claims incurred but not paid and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. On a regular basis, the liabilities are evaluated for appropriateness with claims reserve valuations. To limit exposure to some risks, the Company maintains insurance coverage with varying limits and retentions, including stop-loss insurance coverage for workers' compensation, general liability and auto liability.
Derivatives
The Company uses derivatives for hedging purposes to manage its exposure to changes in interest and currency exchange rates, as well as to maintain an appropriate mix of fixed- and variable-rate debt. Use of derivatives in hedging programs subjects the Company to certain risks, such as market and credit risks. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Credit risk is monitored through established approval procedures, including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral from the counterparty. The Company enters into derivatives with counterparties rated only "A-" or better by nationally recognized credit rating agencies. The Company is subject to master netting arrangements which provides set-off and close out netting of exposures with counterparties, but the Company does not offset derivative assets and liabilities in its Consolidated Balance Sheets. The Company’s collateral arrangements requires the counterparty in a net liability position in excess of pre-determined thresholds, after considering the effects of netting arrangements, to pledge cash collateral. Cash collateral received under these arrangements was not significant as of January 31, 2020 and 2019. The Company was not required to provide any cash collateral to counterparties as of January 31, 2020 and 2019.
In order to qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. If a derivative is recorded using hedge accounting, depending on the nature of the hedge, derivative gains and losses are recorded through the same financial statement line item in earnings or are recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, are recorded at fair value with unrealized gains or losses reported in earnings. Derivatives with an unrealized gain are recorded in the Company's Consolidated Balance Sheets as either current or non-current assets, based on maturity date, and derivatives with an unrealized loss are recorded as either current or non-current liabilities, based on maturity date. Refer to Note 8 for the presentation of the Company's derivative assets and liabilities.
Fair Value Hedges
The Company is a party to receive fixed-rate, pay variable-rate interest rate swaps that the Company uses to hedge the fair value of fixed-rate debt. All interest rate swaps designated as fair value hedges of the related long-term debt meet the shortcut method requirements under U.S. GAAP. Accordingly, changes in the fair values of these interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. These derivatives will mature on dates ranging from October 2020 to April 2024.
Cash Flow Hedges
The Company is a party to receive fixed-rate, pay fixed-rate cross currency interest rate swaps used to hedge the currency exposure associated with the forecasted payments of principal and interest of certain non-U.S. denominated debt. The Company records changes in the fair value of these swaps in accumulated other comprehensive loss which is subsequently
reclassified into earnings in the period that the hedged forecasted transaction affects earnings. These derivatives will mature on dates ranging from April 2022 to March 2034.
Net Investment Hedges
The Company is a party to receive fixed-rate, pay fixed-rate cross currency interest rate swaps used to hedge the currency exposure associated with net investments of certain of its foreign operations. The Company records changes in fair value attributable to the hedged risk in accumulated other comprehensive loss. These derivatives will mature on dates ranging from July 2020 to February 2030. The Company also designated certain foreign currency denominated long-term debt as a hedge of currency exposure associated with the net investment of these operations. The Company records foreign currency gain or loss associated with designated long-term debt in accumulated other comprehensive loss. As of January 31, 2020 and 2019, the Company had $3.9 billion, respectively, of outstanding long-term debt designated as net investment hedges.
These derivative and non-derivative gains or losses continue to defer in accumulated other comprehensive loss until the sale or substantial liquidation of these foreign operations.
Income Taxes
Income taxes are accounted for under the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases ("temporary differences"). Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date.
Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that a portion is not more likely than not to be realized. Many factors are considered when assessing whether it is more likely than not that the deferred tax assets will be realized, including recent cumulative earnings, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates.
The Tax Cuts and Jobs Act contains a provision which subjects a U.S. parent of a foreign subsidiary to current U.S. tax on its global intangible low–taxed income (“GILTI”). The GILTI income is eligible for a deduction, which lowers the effective tax rate to 10.5% for calendar years 2018 through 2025 and 13.125% after 2025. The Company will report the tax impact of GILTI as a period cost when incurred. Accordingly, the Company is not providing deferred taxes for basis differences expected to reverse as GILTI.
In determining the provision for income taxes, an annual effective income tax rate is used based on annual income, permanent differences between book and tax income, and statutory income tax rates. Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur.
The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company records interest and penalties related to unrecognized tax benefits in interest expense and operating, selling, general and administrative expenses, respectively, in the Company's Consolidated Statements of Income. Refer to Note 9 for additional income tax disclosures.
Revenue Recognition    
Net Sales
The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise or services to the customer. eCommerce sales include shipping revenue and are recorded upon delivery to the customer. Estimated sales returns are calculated based on expected returns.
Membership Fee Revenue
The Company recognizes membership fee revenue both in the U.S. and internationally over the term of the membership, which is typically 12 months. Membership fee revenue was $1.5 billion for fiscal 2020 and $1.4 billion for each of fiscal 2019 and 2018, respectively. Membership fee revenue is included in membership and other income in the Company's Consolidated Statements of Income. Deferred membership fee revenue is included in accrued liabilities in the Company's Consolidated Balance Sheets.
Gift Cards
Customer purchases of gift cards are not recognized as sales until the card is redeemed and the customer purchases merchandise using the gift card. Gift cards in the U.S. and some countries do not carry an expiration date; therefore, customers and members
can redeem their gift cards for merchandise and services indefinitely. Gift cards in some countries where the Company does business have expiration dates. While gift cards are generally redeemed within 12 months, a certain number of gift cards, both with and without expiration dates, will not be fully redeemed. Management estimates unredeemed balances and recognizes revenue for these amounts in membership and other income in the Company's Consolidated Statements of Income over the expected redemption period.
Financial and Other Services
The Company recognizes revenue from service transactions at the time the service is performed. Generally, revenue from services is classified as a component of net sales in the Company's Consolidated Statements of Income.
Cost of Sales
Cost of sales includes actual product cost, the cost of transportation to the Company's distribution facilities, stores and clubs from suppliers, the cost of transportation from the Company's distribution facilities to the stores, clubs and customers and the cost of warehousing for the Sam's Club segment and import distribution centers. Cost of sales is reduced by supplier payments that are not a reimbursement of specific, incremental and identifiable costs.
Payments from Suppliers
The Company receives consideration from suppliers for various programs, primarily volume incentives, warehouse allowances and reimbursements for specific programs such as markdowns, margin protection, advertising and supplier-specific fixtures. Payments from suppliers are accounted for as a reduction of cost of sales, except in certain limited situations when the payment is a reimbursement of specific, incremental and identifiable costs, and are recognized in the Company's Consolidated Statements of Income when the related inventory is sold.
Operating, Selling, General and Administrative Expenses
Operating, selling, general and administrative expenses include all operating costs of the Company, except cost of sales, as described above. As a result, the majority of the cost of warehousing and occupancy for the Walmart U.S. and Walmart International segments' distribution facilities is included in operating, selling, general and administrative expenses. Because the Company only includes a portion of the cost of its Walmart U.S. and Walmart International segments' distribution facilities in cost of sales, its gross profit and gross profit as a percentage of net sales may not be comparable to those of other retailers that may include all costs related to their distribution facilities in cost of sales and in the calculation of gross profit.
Advertising Costs
Advertising costs are expensed as incurred, consist primarily of print, television and digital advertisements and are recorded in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. In certain limited situations, reimbursements from suppliers that are for specific, incremental and identifiable advertising costs are recognized as a reduction of advertising costs in operating, selling, general and administrative expenses. Advertising costs were $3.7 billion, $3.5 billion and $3.1 billion for fiscal 2020, 2019 and 2018, respectively.
Currency Translation
The assets and liabilities of all international subsidiaries are translated from the respective local currency to the U.S. dollar using exchange rates at the balance sheet date. Related translation adjustments are recorded as a component of accumulated other comprehensive loss. The Company's Consolidated Statements of Income of all international subsidiaries are translated from the respective local currencies to the U.S. dollar using average exchange rates for the period covered by the income statements.
Recent Accounting Pronouncements
Financial Instruments
In June 2016, the FASB issued 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 Consolidated Financial Statements.
v3.20.1
Net Income Per Common Share
12 Months Ended
Jan. 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 antidilutive and not included in the calculation of diluted net income per common share attributable to Walmart for fiscal 2020, 2019 and 2018.
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:
 
 
Fiscal Years Ended January 31,
(Amounts in millions, except per share data)
 
2020
 
2019
 
2018
Numerator
 
 
 
 
 
 
Consolidated net income
 
$
15,201

 
$
7,179

 
$
10,523

Consolidated net income attributable to noncontrolling interest
 
(320
)
 
(509
)
 
(661
)
Consolidated net income attributable to Walmart
 
$
14,881

 
$
6,670

 
$
9,862

 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
2,850

 
2,929

 
2,995

Dilutive impact of stock options and other share-based awards
 
18

 
16

 
15

Weighted-average common shares outstanding, diluted
 
2,868

 
2,945

 
3,010


 
 
 
 
 
 
Net income per common share attributable to Walmart
 
 
 
 
 
 
Basic
 
$
5.22

 
$
2.28

 
$
3.29

Diluted
 
5.19

 
2.26

 
3.28


v3.20.1
Shareholders' Equity
12 Months Ended
Jan. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Stockholders' Equity Note Disclosure [Text Block] Shareholders' Equity
The total authorized shares of $0.10 par value common stock is 11.0 billion, of which 2.8 billion and 2.9 billion were issued and outstanding as of January 31, 2020 and 2019, respectively.
Share-Based Compensation
The Company has awarded share-based compensation to associates and nonemployee directors of the Company. The compensation expense recognized for all stock incentive plans, including expense associated with plans of the Company's consolidated subsidiaries granted in the subsidiaries' respective stock, was $854 million, $773 million and $626 million for fiscal 2020, 2019 and 2018, respectively. Share-based compensation expense is generally included in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. The total income tax benefit recognized for share-based compensation was $202 million, $181 million and $150 million for fiscal 2020, 2019 and 2018, respectively. The following table summarizes the Company's share-based compensation expense by award type for all plans:
 
Fiscal Years Ended January 31,
(Amounts in millions)
2020
 
2019
 
2018
Restricted stock and performance share units
$
270

 
$
293

 
$
234

Restricted stock units
553

 
456

 
368

Other
31

 
24

 
24

Share-based compensation expense
$
854

 
$
773

 
$
626


The Walmart Inc. Stock Incentive Plan of 2015 (the "Plan"), as amended and restated effective February 23, 2016, as amended further as of February 1, 2017, and as renamed on February 1, 2018, was established to grant stock options, restricted (non-vested) stock, performance share units and other equity compensation awards for which 260 million shares of Walmart common stock issued or to be issued under the Plan have been registered under the Securities Act of 1933, as amended. The Company believes that such awards serve to align the interests of its associates with those of its shareholders.
The Plan's award types are summarized as follows:
Restricted Stock and Performance Share Units. Restricted stock awards are for shares that vest based on the passage of time and include restrictions related to employment. Performance share units vest based on the passage of time and achievement of performance criteria and may range from 0% to 150% of the original award amount. Vesting periods for these awards are generally between one and three years. Restricted stock and performance share units may be settled or deferred in stock and are accounted for as equity in the Company's Consolidated Balance Sheets. The fair value of restricted stock awards is determined on the date of grant and is expensed ratably over the vesting period. The fair value of performance share units is determined on the date of grant using the Company's stock price discounted for the expected dividend yield through the vesting period and is recognized over the vesting period. The weighted-average discount for the dividend yield used to determine the fair value of performance share units in fiscal 2020, 2019 and 2018 was 5.1%, 6.2% and 7.2%, respectively.
Restricted Stock Units. Restricted stock units provide rights to Company stock after a specified service period. Beginning in fiscal 2020, restricted stock units generally vest at a rate of 25% each year over a four year period from the date of the grant. Prior to fiscal 2020, 50% of restricted stock units generally vested three years from the grant date and the remaining 50% were vested five years from the grant date. The fair value of each restricted stock unit is determined on the date of grant using the stock price discounted for the expected dividend yield through the vesting period and is recognized ratably over the vesting period. The expected dividend yield is based on the anticipated
dividends over the vesting period. The weighted-average discount for the dividend yield used to determine the fair value of restricted stock units granted in fiscal 2020, 2019 and 2018 was 4.9%, 7.2% and 9.0%, respectively.
In addition to the Plan, the Company's United Kingdom subsidiary has stock option plans for certain colleagues which generally vest over three years. The stock option share-based compensation expense is included in the Other line in the table above.
Flipkart also maintains a stock option plan primarily for the benefit of employees and nonemployee directors under which options to acquire Flipkart common shares may be issued. The grants have no exercise price and no compensation expense was recognized during fiscal 2020 or fiscal 2019 where a performance condition was not deemed probable of occurring.
The following table shows the activity for restricted stock and performance share units and restricted stock units during fiscal 2020:
 
 
Restricted Stock and Performance Share Units
 
Restricted Stock Units
(Shares in thousands)
 
Shares
 
Weighted-Average Grant-Date Fair Value Per Share
 
Shares
 
Weighted-Average Grant-Date Fair Value Per Share
Outstanding as of February 1, 2019
 
8,799

 
$
75.39

 
23,955

 
$
70.47

Granted
 
3,354

 
100.38

 
8,504

 
95.92

Adjustment for performance achievement(1)
 
898

 
64.50

 

 

Vested/exercised
 
(5,365
)
 
67.96

 
(6,496
)
 
68.13

Forfeited
 
(1,641
)
 
82.77

 
(2,702
)
 
78.86

Outstanding as of January 31, 2020
 
6,045

 
$
93.04

 
23,261

 
$
79.51

(1)
Represents the adjustment to previously granted performance share units for performance achievement.
The following table includes additional information related to restricted stock and performance share units and restricted stock units: 
 
 
Fiscal Years Ended January 31,
(Amounts in millions, except years)
 
2020
 
2019
 
2018
Fair value of restricted stock and performance share units vested
 
$
365

 
$
183

 
$
181

Fair value of restricted stock units vested
 
442

 
386

 
344

Unrecognized compensation cost for restricted stock and performance share units
 
326

 
362

 
291

Unrecognized compensation cost for restricted stock units
 
1,096

 
1,002

 
972

Weighted average remaining period to expense for restricted stock and performance share units (years)
 
1.4

 
1.1

 
1.2

Weighted average remaining period to expense for restricted stock units (years)
 
1.3

 
1.6

 
1.8


Share Repurchase Program
From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. All repurchases made during fiscal 2020 were made under the current $20.0 billion share repurchase program approved in October 2017, which has no expiration date or other restrictions limiting the period over which the Company can make share repurchases. As of January 31, 2020, authorization for 5.7 billion of share repurchases remained under the share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status.
The Company regularly reviews share repurchase activity and considers several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings, results of operations and the market price of the Company's common stock. The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2020, 2019 and 2018:
 
 
Fiscal Years Ended January 31,
(Amounts in millions, except per share data)
 
2020
 
2019
 
2018
Total number of shares repurchased
 
53.9

 
79.5

 
104.9

Average price paid per share
 
$
105.98

 
$
93.18

 
$
79.11

Total cash paid for share repurchases
 
$
5,717

 
$
7,410

 
$
8,296


v3.20.1
Accumulated Other Comprehensive Loss
12 Months Ended
Jan. 31, 2020
Other Comprehensive Income (Loss), Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Loss
The following table provides the changes in the composition of total accumulated other comprehensive loss for fiscal 2020, 2019, and 2018:
(Amounts in millions and net of immaterial income taxes)
Currency
Translation
and Other
 
Net Investment Hedges
 
Unrealized Gain on Available-for-Sale Securities
 
Cash Flow Hedges
 
Minimum
Pension Liability
 
Total
Balances as of February 1, 2017
$
(14,507
)
 
$
1,435

 
$
145

 
$
(315
)
 
$
(990
)
 
$
(14,232
)
Other comprehensive income (loss) before reclassifications, net
2,345

 
(405
)
 
1,501

 
436

 
83

 
3,960

Amounts reclassified from accumulated other comprehensive loss, net
26

 

 

 
1

 
64

 
91

Balances as of January 31, 2018
(12,136
)
 
1,030

 
1,646

 
122

 
(843
)
 
(10,181
)
Adoption of new accounting standards on February 1, 2018(1)
89

 
93

 
(1,646
)
 
28

 

 
(1,436
)
Other comprehensive income (loss) before reclassifications, net
(2,093
)
 
272

 

 
(339
)
 
93

 
(2,067
)
Reclassifications to income, net(2)
2,055

 

 

 
49

 
38

 
2,142

Balances as of January 31, 2019
(12,085
)
 
1,395

 

 
(140
)
 
(712
)
 
(11,542
)
Other comprehensive income (loss) before reclassifications, net(3)
281

 
122

 

 
(399
)
 
(1,283
)
 
(1,279
)
Reclassifications to income, net
(23
)
 

 

 

 
39

 
16

Balances as of January 31, 2020
$
(11,827
)
 
$
1,517

 
$

 
$
(539
)
 
$
(1,956
)
 
$
(12,805
)
(1) Primarily relates to the adoption of ASU 2016-01 and ASU 2018-02, Income StatementReporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
(2) Includes a cumulative foreign currency translation loss of $2.0 billion, for which there was no related income taxes, upon sale of the majority stake in Walmart Brazil (see Note 12).
(3) Primarily includes the remeasurement of Asda's pension benefit obligation subsequent to the cash contribution made by Asda, as described more fully in Note 11.
Amounts reclassified from accumulated other comprehensive loss for derivatives are recorded in interest, net, in the Company's Consolidated Statements of Income, and the amounts 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 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.
v3.20.1
Accrued Liabilities
12 Months Ended
Jan. 31, 2020
Accrued Liabilities [Abstract]  
Accounts payable and accrued liabilities disclosure Accrued Liabilities
The Company's accrued liabilities consist of the following as of January 31, 2020 and 2019:
 
 
January 31,
(Amounts in millions)
 
2020
 
2019
Accrued wages and benefits(1)
 
$
6,093

 
$
6,504

Self-insurance(2)
 
4,469

 
3,979

Accrued non-income taxes(3)
 
3,039

 
2,979

Deferred gift card revenue
 
1,990

 
1,932

Other(4)
 
6,705

 
6,765

Total accrued liabilities
 
$
22,296

 
$
22,159

(1)
Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans.
(2)
Self-insurance consists of insurance-related liabilities, such as workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits.
(3)
Accrued non-income taxes include accrued payroll, property, value-added, sales and miscellaneous other taxes.
(4)
Other accrued liabilities consist of various items such as interest, maintenance, utilities, legal contingencies, and advertising.
v3.20.1
Short-term Borrowings and Long-term Debt
12 Months Ended
Jan. 31, 2020
Long-term Debt, Unclassified [Abstract]  
Short-term Borrowings and Long-term debt Short-term Borrowings and Long-term Debt
Short-term borrowings consist of commercial paper and lines of credit. Short-term borrowings as of January 31, 2020 and 2019 were $0.6 billion and $5.2 billion, respectively, with weighted-average interest rates of 5.0% and 2.7%, respectively. Short-term borrowings as of January 31, 2020 were primarily outside of the U.S.
The Company has various committed lines of credit in the U.S. totaling $15.0 billion as of January 31, 2020 and 2019, respectively. These committed lines of credit are summarized in the following table:
 
 
January 31, 2020
 
January 31, 2019
(Amounts in millions)
 
Available
 
Drawn
 
Undrawn
 
Available
 
Drawn
 
Undrawn
Five-year credit facility(1)
 
$
5,000

 
$

 
$
5,000

 
$
5,000

 
$

 
$
5,000

364-day revolving credit facility(1)
 
10,000

 

 
10,000

 
10,000

 

 
10,000

Total
 
$
15,000

 
$

 
$
15,000

 
$
15,000

 
$

 
$
15,000


(1)
In May 2019, the Company renewed and extended its existing five-year credit facility and its existing 364-day revolving credit facility, both of which are used to support its commercial paper program.
The committed lines of credit in the table above mature at various times between May 2020 and May 2024, carry interest rates generally ranging between LIBOR plus 10 basis points and LIBOR plus 75 basis points, and incur commitment fees ranging between 1.5 and 4.0 basis points. In conjunction with the committed lines of credit listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to the maximum amount of secured debt. Additionally, the Company also maintains other committed lines of credit outside of the U.S., with available amounts of approximately $3.0 billion as of each of January 31, 2020 and 2019, respectively, of which approximately $0.1 billion and $0.2 billion was drawn as of January 31, 2020 and 2019, respectively.
Apart from the committed lines of credit, the Company has syndicated and fronted letters of credit available totaling $1.8 billion as of each of January 31, 2020 and 2019, respectively, of which $1.6 billion was drawn as of each of January 31, 2020 and 2019, respectively. The Company also has trade letters of credit, without stated limits, of which $0.2 billion and $0.4 billion was drawn as of January 31, 2020 and 2019, respectively.
The Company's long-term debt, which includes the fair value instruments further discussed in Note 8, consists of the following as of January 31, 2020 and 2019:
 
 
 
 
January 31, 2020
 
January 31, 2019
(Amounts in millions)
 
Maturity Dates
By Fiscal Year
 
Amount
 
Average Rate(1)
 
Amount
 
Average Rate(1)
Unsecured debt
 
 
 
 
 
 
 
 
 
 
Fixed
 
2021 - 2050
 
$
39,752

 
3.8%
 
$
35,816

 
3.9%
Variable
 
2021 - 2022
 
1,500

 
2.1%
 
1,800

 
2.9%
Total U.S. dollar denominated
 
 
 
41,252

 
 
 
37,616

 
 
Fixed
 
2023 - 2030
 
2,758

 
3.3%
 
2,870

 
3.3%
Variable
 
 
 

 
 
 

 
 
Total Euro denominated
 
 
 
2,758

 
 
 
2,870

 
 
Fixed
 
2031 - 2039
 
3,518

 
5.4%
 
3,524

 
5.4%
Variable
 
 
 

 
 
 

 
 
Total Sterling denominated
 
 
 
3,518

 
 
 
3,524

 
 
Fixed
 
2021 - 2028
 
1,652

 
0.4%
 
1,651

 
0.4%
Variable
 
 
 

 
 
 

 
 
Total Yen denominated
 
 
 
1,652

 
 
 
1,651

 
 
Total unsecured debt
 
 
 
49,180

 
 
 
45,661

 
 
Total other(2)
 
 
 
(104
)
 
 
 
(265
)
 
 
Total debt
 
 
 
49,076

 
 
 
45,396

 
 
Less amounts due within one year
 
 
 
(5,362
)
 
 
 
(1,876
)
 
 
Long-term debt
 
 
 
$
43,714

 
 
 
$
43,520

 
 
(1)
The average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end interest rates.
(2)
Includes deferred loan costs, discounts, fair value hedges, foreign-held debt and secured debt.

Annual maturities of long-term debt during the next five years and thereafter are as follows:
(Amounts in millions)
 
Annual
Fiscal Year
 
Maturities
2021
 
$
5,362

2022
 
3,009

2023
 
2,830

2024
 
4,652

2025
 
4,367

Thereafter
 
28,960

Total
 
$
49,180


Debt Issuances
Information on long-term debt issued during fiscal 2020, for general corporate purposes, is as follows:
(Amounts in millions)
 
 
 
 
 
 
 
 
 
 
Issue Date
 
Principal Amount
 
Maturity Date
 
Fixed vs. Floating
 
Interest Rate
 
Net Proceeds
April 23, 2019
 
$1,500
 
July 8, 2024
 
Fixed
 
2.850%
 
$
1,493

April 23, 2019
 
$1,250
 
July 8, 2026
 
Fixed
 
3.050%
 
1,242

April 23, 2019
 
$1,250
 
July 8, 2029
 
Fixed
 
3.250%
 
1,243

September 24, 2019
 
$500
 
September 24, 2029
 
Fixed
 
2.375%
 
497

September 24, 2019
 
$1,000
 
September 24, 2049
 
Fixed
 
2.950%
 
975

Various
 
$42
 
Various
 
Various
 
Various
 
42

Total
 
 
 
 
 
 
 
 
 
$
5,492


Information on long-term debt issued during fiscal 2019, to fund a portion of the purchase price for the Flipkart acquisition and for general corporate purposes, is as follows:
(Amounts in millions)
 
 
 
 
 
 
 
 
 
 
Issue Date
 
Principal Amount
 
Maturity Date
 
Fixed vs. Floating
 
Interest Rate
 
Net Proceeds
June 27, 2018
 
$750
 
June 23, 2020
 
Floating
 
Floating
 
$
748

June 27, 2018
 
$1,250
 
June 23, 2020
 
Fixed
 
2.850%
 
1,247

June 27, 2018
 
$750
 
June 23, 2021
 
Floating
 
Floating
 
748

June 27, 2018
 
$1,750
 
June 23, 2021
 
Fixed
 
3.125%
 
1,745

June 27, 2018
 
$2,750
 
June 26, 2023
 
Fixed
 
3.400%
 
2,740

June 27, 2018
 
$1,500
 
June 26, 2025
 
Fixed
 
3.550%
 
1,490

June 27, 2018
 
$2,750
 
June 26, 2028
 
Fixed
 
3.700%
 
2,725

June 27, 2018
 
$1,500
 
June 28, 2038
 
Fixed
 
3.950%
 
1,473

June 27, 2018
 
$3,000
 
June 29, 2048
 
Fixed
 
4.050%
 
2,935

Various
 
$21
 
Various
 
Various
 
Various
 
21

Total
 
 
 
 
 
 
 
 
 
$
15,872


The fiscal 2020 and fiscal 2019 issuances are senior, unsecured notes which rank equally with all other senior, unsecured debt obligations of the Company, and are not convertible or exchangeable. These issuances do not contain any financial covenants which restrict the Company's ability to pay dividends or repurchase company stock.
Repayments
The following table provides details of debt repayments during fiscal 2020:
(Amounts in millions)
 
 
 
 
 
 
 
 
Maturity Date
 
Principal Amount
 
Fixed vs. Floating
 
Interest Rate
 
Repayment
February 1, 2019
 
$500
 
Fixed
 
4.125%
 
$
364

October 20, 2019
 
$300
 
Floating
 
Floating
 
300

October 20, 2019
 
$1,200
 
Fixed
 
1.750%
 
1,200

Various(1)
 
$43
 
Various
 
Various
 
43

Total repayment of matured debt
 
 
 
 
 
 
 
$
1,907


(1) Includes repayments of smaller long-term debt as it matured in several non-U.S. operations.
The following table provides details of debt repayments during fiscal 2019:
(Amounts in millions)
 
 
 
 
 
 
 
 
Maturity Date
 
Principal Amount
 
Fixed vs. Floating
 
Interest Rate
 
Repayment
February 15, 2018
 
$1,250
 
Fixed
 
5.800%
 
$
1,250

April 11, 2018
 
$1,250
 
Fixed
 
1.125%
 
1,250

June 1, 2018
 
$500
 
Floating
 
Floating
 
500

December 15, 2018
 
$724
 
Fixed
 
1.950%
 
724

Various(1)
 
$60
 
Various
 
Various
 
60

Total repayment of matured debt
 
 
 
 
 
 
 
$
3,784

(1) Includes repayments of smaller long-term debt as it matured in several non-U.S. operations.
v3.20.1
Leases (Notes)
12 Months Ended
Jan. 31, 2020
Leases [Abstract]  
Leases of Lessee Disclosure [Text Block] Leases
The Company leases certain retail locations, distribution and fulfillment centers, warehouses, office spaces, land and equipment throughout the U.S. and internationally.
The Company's lease costs recognized in the Consolidated Statement of Income consist of the following:
(Amounts in millions)
 
Fiscal Year Ended January 31, 2020
Operating lease cost(1)
 
$
2,670

Finance lease cost:
 
 
   Amortization of right-of-use assets
 
480

   Interest on lease obligations
 
306

Variable lease cost
 
691


(1) Rentals (including amounts applicable to taxes, insurance, maintenance, other operating expenses and contingent rentals) under operating leases and other short-term rental arrangements were $3.0 billion and $2.9 billion in fiscal 2019 and 2018, respectively.
Other lease information is as follows:
(Dollar amounts in millions)
 
Fiscal Year Ended January 31, 2020
Cash paid for amounts included in measurement of lease obligations:
 
 
Operating cash flows from operating leases
 
$
2,614

Operating cash flows from finance leases
 
278

Financing cash flows from finance leases
 
485

Assets obtained in exchange for operating lease obligations
 
2,151

Assets obtained in exchange for finance lease obligations
 
1,081

Weighted-average remaining lease term - operating leases
 
15.6 years

Weighted-average remaining lease term - finance leases
 
14.4 years

Weighted-average discount rate - operating leases
 
5.4
%
Weighted-average discount rate - finance leases
 
8.6
%

The aggregate annual lease obligations at January 31, 2020 are as follows:
(Amounts in millions)
 
 
 
 
Fiscal Year
 
Operating Leases
 
Finance Leases
2021
 
$
2,587

 
$
797

2022
 
2,358

 
757

2023
 
2,138

 
640

2024
 
1,932

 
552

2025
 
1,728

 
492

Thereafter
 
15,514

 
5,612

Total undiscounted lease obligations
 
26,257

 
8,850

Less imputed interest
 
(8,293
)
 
(4,032
)
Net lease obligations
 
$
17,964

 
$
4,818


Upon adoption of ASU 2016-02, Leases (Topic 842), the Company's aggregate annual lease obligations includes leases with reasonably assured renewals. The aggregate minimum annual lease rentals as of January 31, 2019 for the remaining contractual term of non-cancelable leases under ASC 840 were as follows:
(Amounts in millions)
 
 
 
 
Fiscal Year
 
Operating Leases(1)
 
Capital Lease and Financing Obligations
2020
 
$
1,856

 
$
917

2021
 
1,655

 
856

2022
 
1,420

 
794

2023
 
1,233

 
667

2024
 
1,063

 
593

Thereafter
 
6,891

 
6,069

Total minimum rentals
 
14,118

 
9,896

Less estimated executory costs
 
 
 
23

       Net minimum lease payments
 
 
 
9,873

Financing obligation noncash gains and other
 
 
 
2,278

Less imputed interest
 
 
 
(4,739
)
Present value of minimum lease payments
 
 
 
$
7,412

(1)
Represents minimum contractual obligation for non-cancelable leases with initial or remaining terms greater than 12 months as of January 31, 2019.
v3.20.1
Fair Value Measurements
12 Months Ended
Jan. 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) on a recurring basis and records them in other long-term assets in the accompanying Consolidated Balance Sheets. Measurement details about the Company's two portions of the investment in JD are as follows:
The purchased portion of the investment in JD is measured using Level 1 inputs.
The portion of the investment in JD received in exchange for selling certain assets related to Yihaodian, the Company's former eCommerce operation in China, measured using Level 2 inputs. Fair value is determined primarily using quoted prices in active markets for similar assets.
The fair value of the Company's investment in JD is as follows:
(Amounts in millions)
Fair Value as of January 31, 2020
 
Fair Value as of January 31, 2019
Investment in JD measured using Level 1 inputs
$
2,715

 
$
1,791

Investment in JD measured using Level 2 inputs
2,723

 
1,792

Total
$
5,438

 
$
3,583

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 January 31, 2020 and January 31, 2019, the notional amounts and fair values of these derivatives were as follows:
 
January 31, 2020
 
January 31, 2019
 
(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

 
$
97

(1) 
$
4,000

 
$
(78
)
(2) 
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges
3,750

 
455

(1) 
2,250

 
334

(1) 
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges
4,067

 
(696
)
(2) 
4,173

 
(272
)
(3) 
Total
$
11,817

 
$
(144
)
 
$
10,423

 
$
(16
)
 

(1) 
Classified in Other long-term assets within the Company's Consolidated Balance Sheets.
(2) 
Classified in Deferred income taxes and other within the Company's Consolidated Balance Sheets.
(3) 
Approximately $350 million of cash flow hedges were classified in Deferred income taxes and other and $78 million of cash flow were classified in Other long-term assets in the Company's 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.
For the fiscal year ended January 31, 2020