UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________________

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported)
February 18, 2021

Walmart Inc.
(Exact name of registrant as specified in its charter)

DE	001-06991	71-0415188	
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)	

702 S.W. 8th Street
Bentonville, AR 72716-0215
(Address of Principal Executive Offices) (Zip code)

Registrant's telephone number, including area code
(479) 273-4000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered	
Common Stock, par value $0.10 per share		WMT		NYSE	
1.900% Notes Due 2022		WMT22		NYSE	
2.550% Notes Due 2026		WMT26		NYSE	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition.
In accordance with Item 2.02 of Form 8-K of the Securities and Exchange Commission (the "SEC"), Walmart Inc., a Delaware corporation (the "Company"), is furnishing to the SEC a press release that the Company will issue on February 18, 2021 (the "Press Release") and a financial presentation that will be first posted by the Company on the Company’s website at http://stock.walmart.com on February 18, 2021 (the "Financial Presentation"). The Press Release and the Financial Presentation will disclose information regarding the Company's results of operations for the three months and fiscal year ended January 31, 2021, and the Company's financial condition as of January 31, 2021.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, which are furnished herewith pursuant to and relate to this Item 2.02, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of Section 18 of the Exchange Act. The information in this Item 2.02 of this Current Report on Form 8-K and Exhibits 99.1 and 99.2 hereto shall not be incorporated by reference into any filing or other document filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, the rules and regulations of the SEC thereunder, the Exchange Act, or the rules and regulations of the SEC thereunder except as shall be expressly set forth by specific reference in such filing or document.

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

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

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 18, 2021

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

Walmart reports record Q4 and FY21 revenue. Annual revenue of nearly $560 billion resulted in $35 billion of growth; $40 billion of growth in constant currency2

•Walmart U.S. Q4 comp sales1 grew 8.6% and Walmart U.S. eCommerce sales grew 69%.
•Q4 FY21 GAAP EPS of ($0.74); Adjusted EPS2 of $1.39. Decision to repay property tax relief in the U.K. lowered GAAP EPS and Adjusted EPS by $0.07; COVID-related costs were $1.1 billion in Q4.
•Walmart continues to build the next generation business model, investing in automation to fuel future sales and earnings growth. FY22 capital investments are expected to be nearly $14 billion to build supply chain capacity and automation to stay ahead of demand, improve the customer experience and increase productivity.
•Walmart will also invest in U.S. wages, raising the associate average to above $15 per hour.
•Net sales, operating income and EPS are expected to decline in FY22 primarily due to the impact of anticipated divestitures. Excluding the effect of divestitures, net sales are expected to grow low single-digits with operating income and EPS expected to be flat to up slightly.
•The company increased its dividend for the 48th consecutive year and approved a new $20 billion share repurchase program.

Bentonville, Ark., Feb. 18, 2021 - Today, Walmart will host its annual meeting for the investment community. During the meeting, Walmart’s leadership team will highlight how the company will build on its strong performance in FY21 and existing momentum with customers. The company’s strong financial position makes it the right time to accelerate investments in key areas, enabling it to grow faster while leveraging its unique assets to build a business model that will define the next generation of retail.

The company’s integrated omnichannel strategy focuses on:
•Being the primary destination for customers providing value on items they want and need supported by increasingly efficient pickup and delivery, which will drive accelerated growth.
•Innovating to enhance a seamless, digital customer experience designed to deepen customer relationships and increase share of wallet, enabling the company to diversify the business model by growing related businesses with accretive margins such as marketplace, advertising, financial services and data monetization.
•In the U.S., the company is continuing to invest to provide more customers with access to high quality, preventative and affordable healthcare to complement its other healthcare offerings, including providing vaccinations across the country and in geographies the federal government defines as medically underserved.
•Continuing to invest in associates and create opportunities by raising wages for an additional 425,000 frontline associates after raising wages for 165,000 associates last fall.
•Actively managing the portfolio and deploying capital to priority areas such as capacity and automation in DCs, FCs and market fulfillment centers to accelerate sales and profit growth.
•Creating shared value for all stakeholders, including associates, customers, shareholders, business partners, suppliers and the planet.

1 Comp sales for the 13-week period ended January 29, 2021 compared to 13-week period ended January 31, 2020, and excludes fuel. See Supplemental Financial Information for additional information.
2 See additional information at the end of this release regarding non-GAAP financial measures.
									
NYSE: WMT	February 18, 2021	stock.walmart.com	

2
“We completed a strong year and a strong Q4 thanks to our amazing associates. They stepped up to serve our customers and members exceptionally well during a busy holiday period in the midst of a pandemic,” said Walmart President and CEO, Doug McMillon. “Change in retail accelerated in 2020. The capabilities we’ve built in previous years put us ahead, and we’re going to stay ahead. Our business is strong, and we’re making it even stronger with targeted investments to accelerate growth, including raises for 425,000 associates in frontline roles driving the customer experience.”

“This is a time to be even more aggressive because of the opportunity we see in front of us,” added McMillon. “The strategy, team and capabilities are in place. We have momentum with customers, and our financial position is strong.”

“Our associates responded unbelievably to serve customers in one of the most challenging times we’ve faced. We have tremendous momentum having just completed a year with record sales and operating cash flow,” said Walmart Chief Financial Officer, Brett Biggs. “We accomplished this while accelerating our long-term strategy of transforming Walmart into a dynamic omnichannel business. It’s now time to accelerate even more.”

Fourth-quarter highlights
•Total revenue was a record $152.1 billion, an increase of $10.4 billion, or 7.3%. Excluding currency2, total revenue would have increased 7.5% to reach $152.3 billion.
•Walmart U.S. comp sales1 increased 8.6% with strength across most key categories.
•Walmart U.S. eCommerce sales increased 69% with strong results across all channels.
•Sam’s Club comp sales1 increased 10.8% and eCommerce sales grew 42%. Reduced tobacco sales negatively affected comp sales by approximately 410 basis points. Membership income increased 12.9%, the strongest growth in six years.
•Walmart International net sales were $34.9 billion, an increase of 5.5%. Net sales in constant currency2 increased 6.3%, led by Flipkart, Mexico and Canada. Changes in currency rates negatively affected net sales by approximately $0.3 billion.
•Consolidated gross profit rate increased 29 basis points with positive contributions from each operating segment, led by the U.S.
•Consolidated operating expenses as a percentage of net sales increased 41 basis points.
◦Incremental expenses related to COVID-19 of approximately $1.1 billion were partially offset by business restructuring charges from the prior year.
◦The decision to repay property tax relief in the U.K. lowered GAAP and Adjusted EPS by $0.07.
•Consolidated operating income was $5.5 billion, an increase of 3.1%.
•Adjusted operating income in constant currency2 decreased 3.2%, primarily as a result of incremental expenses related to COVID-19 and the company’s decision to repay property tax relief in the U.K.
•GAAP EPS of ($0.74); Adjusted EPS2 of $1.39.
•Adjusted EPS2 excludes the effects, net of tax, of:
◦a loss on our operations held for sale in the U.K. and Japan of $2.66;
◦net gains of $0.49 on equity investments, primarily JD.com;
◦a benefit from a discrete tax item of $0.10; and
◦a charge related to officer compensation of $0.06.

1 Comp sales for the 13-week period ended January 29, 2021 compared to 13-week period ended January 31, 2020, and excludes fuel. See Supplemental Financial Information for additional information.
2 See additional information at the end of this release regarding non-GAAP financial measures.
									
NYSE: WMT	February 18, 2021	stock.walmart.com	

3
Fiscal 2021 highlights
•Total revenue was $559.2 billion, an increase of $35.2 billion, or 6.7%. Excluding currency2, total revenue was $564.2 billion, an increase of $40.2 billion, or 7.7%.
•Walmart U.S. comp sales1 increased 8.6%.
•Walmart U.S. eCommerce sales grew 79%. Contribution profit continued to improve.
•Sam’s Club comp sales1 increased 11.8%. Reduced tobacco sales negatively affected comp sales by approximately 400 basis points. Membership income increased 9.4%.
•Walmart International net sales increased 1.0%, or 5.2% in constant currency2 with strength in Mexico, Canada and Flipkart.
•The company generated $36.1 billion in operating cash flow and returned $8.7 billion to shareholders through dividends and share repurchases.
•GAAP EPS of $4.75; Adjusted EPS2 of $5.48.

Key results
(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)

  	Q4 FY21	Q4 FY20	Change		FY21	FY20	Change	
								
Revenue	$152.1	$141.7	$10.4	7.3%		$559.2	$524.0	$35.2	6.7%	
Revenue (constant currency)2	$152.3	$141.7	$10.7	7.5%		$564.2	$524.0	$40.2	7.7%	
Operating income	$5.5	$5.3	$0.2	3.1%		$22.5	$20.6	$2.0	9.6%	
Operating income (constant currency)2	$5.5	$5.3	$0.2	3.4%		$22.8	$20.6	$2.2	10.6%	
Adjusted operating income (constant currency)2	$5.7	$5.9	-$0.2	-3.2%		$23.4	$21.4	$2.0	9.3%	

Free Cash Flow2	FY21	$ Change		Returns to Shareholders	FY21	% Change	
Operating cash flow	$36.1	$10.8		Dividends	$6.1	1.0%	
Capital expenditures	$10.3	-$0.4		Share repurchases3	$2.6	-54.1%	
Free cash flow2	$25.8	$11.3		Total	$8.7	-25.8%	

1 Comp sales for the 52-week period ended January 29, 2021 compared to 52-week period ended January 31, 2020, and excludes fuel. See Supplemental Financial Information for additional information.
2 See additional information at the end of this release regarding non-GAAP financial measures.
3 $3.0 billion remaining of $20 billion authorization approved in October 2017. The company repurchased approximately 19 million shares in fiscal 2021.
									
NYSE: WMT	February 18, 2021	stock.walmart.com	

4
Fiscal 2022 full year guidance
The following guidance reflects the company’s expectations for fiscal year 2022 and is provided on a non-GAAP basis as the Company cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation, the timing of divestitures and the changes in fair value on the Company’s equity investments. Additionally, the guidance assumes we complete the sale of our business in Japan near the beginning of fiscal 2022. Assumptions in the guidance are dependent upon the duration and intensity of the COVID-19 health crisis globally, timing and effectiveness of global vaccines, the scale and duration of economic stimulus, employment trends and consumer confidence.

Metric	FY22 Guidance	
Consolidated net sales	Decline in constant currency
•Excluding divestitures1, consolidated net sales growth up low single-digits	
Comp sales growth	•Walmart U.S., up low single-digits, ex. fuel
•Sam’s Club, up low single-digits, ex. fuel and tobacco	
Walmart International net sales	Decline in constant currency
•Higher growth percentage than U.S., excluding divestitures1	
Consolidated expense leverage	Maintain rate, or slightly deleverage	
Consolidated operating income	Decline slightly in constant currency 
•Flat to up slightly, excluding divestitures1	
Walmart U.S. operating income	Increase slightly	
Effective tax rate	24.5% to 25.5%	
EPS	Decline slightly
•Flat to up slightly, excluding divestitures1	
Capital expenditures	Around $14 billion with a focus on supply chain, automation, customer-facing initiatives and technology	

1 We completed the sale of Walmart Argentina in November 2020, our operations in the U.K. in February 2021 and expect to complete the sale of our operations in Japan in the first quarter of fiscal 2022.
									
NYSE: WMT	February 18, 2021	stock.walmart.com	

5
Segment results
(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)

 U.S.	Q4 FY21	Q4 FY20	Change		FY21	FY20	Change	
Net sales	$99.6	$92.3	$7.3	7.9%		$370.0	$341.0	$29.0	8.5%	
Comp sales (ex. fuel)2	8.6%	1.9%	NP	NP		8.6%	2.8%	NP	NP	
	Transactions	-10.9%	1.0%	NP	NP		NP	NP	NP	NP	
	Average ticket	21.9%	0.9%	NP	NP		NP	NP	NP	NP	
	eCommerce contribution3	~620 bps	~250 bps	NP	NP		NP	NP	NP	NP	
Operating income	$5.2	$4.4	$0.8	17.4%		$19.1	$17.4	$1.7	10.0%	
Adjusted operating income1	$5.2	$4.9	$0.3	6.5%		$19.5	$17.8	$1.7	9.3%	

  	Q4 FY21	Q4 FY20	Change		FY21	FY20	Change	
Net sales	$34.9	$33.0	$1.8	5.5%		$121.4	$120.1	$1.2	1.0%	
Net sales (constant currency)1	$35.1	$33.0	$2.1	6.3%		$126.4	$120.1	$6.3	5.2%	
Operating income	$1.0	$1.1	-$0.1	-12.8%		$3.7	$3.4	$0.3	8.6%	
Operating income (constant currency)1	$1.0	$1.1	-$0.1	-11.2%		$3.9	$3.4	$0.5	14.8%	
Adjusted operating income (constant currency)1	$1.0	$1.2	-$0.2	-18.3%		$4.0	$3.8	$0.2	5.5%	

  	Q4 FY21	Q4 FY20	Change		FY21	FY20	Change	
								
Net sales	$16.5	$15.3	$1.2	8.1%		$63.9	$58.8	$5.1	8.7%	
Comp sales (ex. fuel)2	10.8%	0.8%	NP	NP		11.8%	0.7%	NP	NP	
	Transactions	8.4%	4.3%	NP	NP		NP	NP	NP	NP	
	Average ticket	2.2%	-3.5%	NP	NP		NP	NP	NP	NP	
	eCommerce contribution3	~280 bps	~210 bps	NP	NP		NP	NP	NP	NP	
Operating income	$0.4	$0.4	$0.0	1.3%		$1.9	$1.6	$0.3	16.1%	

About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, nearly 230 million customers and members visit approximately 10,800 stores and clubs under 51 banners in 25 countries and eCommerce websites. With fiscal year 2021 revenue of $559 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting https://corporate.walmart.com, on Facebook at https://facebook.com/walmart and on Twitter at https://twitter.com/walmart.

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

1 See additional information at the end of this release regarding non-GAAP financial measures.
2 Fiscal 2021 comparable sales are for the 13-week and 52-week periods ended January 29, 2021 compared to the 13-week and 52-week periods ended January 31, 2020. As the retail sales calendar for the year ended January 31, 2020 included 53 weeks, fiscal 2020 comparable sales are for the 14-week and 53-week periods ended January 31, 2020 compared to the 14-week and 53-week periods ended February 1, 2019. See Supplemental Financial Information for additional information.
3 Beginning in Q1 FY21, we revised our definition of eCommerce net sales to include certain pharmacy transactions. Accordingly, we revised prior period amounts for Walmart U.S. and Sam’s Club to be consistent with the current year’s presentation.
NP - Not provided

									
NYSE: WMT	February 18, 2021	stock.walmart.com	

6

Forward-Looking Statements
This release and related management commentary contains statements or may include or may incorporate by reference, statements that may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Assumptions on which such forward-looking statements are based are also forward-looking statements. Such forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our consolidated, or one of our segment's or business’, economic performance or results of operations for future periods or as of future dates or events or developments that may occur in the future or discuss our plans, objectives or goals. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: the impact of the COVID-19 pandemic on our business and the global economy; economic, capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, and other strategic decisions; our ability to successfully integrate acquired businesses; changes in the trading prices of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average transactions in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; the amount of our net sales and operating expenses denominated in the U.S. dollar and various foreign currencies; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; our ability to respond to changing trends in consumer shopping habits; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; casualty and accident-related costs and insurance costs; the turnover in our workforce and labor costs, including healthcare and other benefit costs; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events, global health epidemics or pandemics and catastrophic events; and changes in generally accepted accounting principles in the United States.

Our most recent annual report on Form 10-K and subsequent quarterly report on Form 10-Q filed with the SEC discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in the release and related management commentary. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made today are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
									
NYSE: WMT	February 18, 2021	stock.walmart.com	

7
Walmart Inc.
Condensed Consolidated Statements of Income
(Unaudited)

													
		Three Months Ended		Fiscal Year Ended	
		January 31,		January 31,	
(Amounts in millions, except per share data)		2021		2020		Percent Change		2021		2020		Percent Change	
Revenues:													
Net sales		$	150,985 			$	140,608 			7.4 	%		$	555,233 			$	519,926 			6.8 	%	
Membership and other income		1,094 			1,063 			2.9 	%		3,918 			4,038 			(3.0)	%	
Total revenues		152,079 			141,671 			7.3 	%		559,151 			523,964 			6.7 	%	
Costs and expenses:													
Cost of sales		115,261 			107,748 			7.0 	%		420,315 			394,605 			6.5 	%	
Operating, selling, general and administrative expenses		31,331 			28,601 			9.5 	%		116,288 			108,791 			6.9 	%	
Operating income		5,487 			5,322 			3.1 	%		22,548 			20,568 			9.6 	%	
Interest:													
Debt		434 			569 			(23.7)	%		1,976 			2,262 			(12.6)	%	
Finance lease obligations		90 			83 			8.4 	%		339 			337 			0.6 	%	
Interest income		(30)			(41)			(26.8)	%		(121)			(189)			(36.0)	%	
Interest, net		494 			611 			(19.1)	%		2,194 			2,410 			(9.0)	%	
	
Other (gains) and losses		5,586 			(962)			(680.7)	%		(210)			(1,958)			(89.3)	%	
Income (loss) before income taxes		(593)			5,673 			(110.5)	%		20,564 			20,116 			2.2 	%	
Provision for income taxes		1,415 			1,379 			2.6 	%		6,858 			4,915 			39.5 	%	
	
Consolidated net income (loss)		(2,008)			4,294 			(146.8)	%		13,706 			15,201 			(9.8)	%	
Consolidated net income attributable to noncontrolling interest		(83)			(153)			(45.8)	%		(196)			(320)			(38.8)	%	
Consolidated net income (loss) attributable to Walmart		$	(2,091)			$	4,141 			(150.5)	%		$	13,510 			$	14,881 			(9.2)	%	
													
Net income (loss) per common share:													
Basic net income (loss) per common share attributable to Walmart		$	(0.74)			$	1.46 			(150.7)	%		$	4.77 			$	5.22 			(8.6)	%	
Diluted net income (loss) per common share attributable to Walmart		$	(0.74)			$	1.45 			(151.0)	%		$	4.75 			$	5.19 			(8.5)	%	
													
Weighted-average common shares outstanding:													
Basic		2,826 			2,836 					2,831 			2,850 				
Diluted		2,826 			2,855 					2,847 			2,868 				
													
Dividends declared per common share		$	— 			$	— 					$	2.16 			$	2.12 				

8
Walmart Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

					
		January 31,		January 31,	
(Amounts in millions)		2021		2020	
ASSETS					
Current assets:					
Cash and cash equivalents		$	17,741 			$	9,465 		
Receivables, net		6,516 			6,284 		
Inventories		44,949 			44,435 		
Prepaid expenses and other (1)		20,861 			1,622 		
	
Total current assets		90,067 			61,806 		

	
Property and equipment, net		92,201 			105,208 		
Operating lease right-of-use assets		13,642 			17,424 		
Finance lease right-of-use assets, net		4,005 			4,417 		
Goodwill		28,983 			31,073 		
Other long-term assets		23,598 			16,567 		
Total assets		$	252,496 			$	236,495 		
					
LIABILITIES AND EQUITY					
Current liabilities:					
Short-term borrowings		$	224 			$	575 		
Accounts payable		49,141 			46,973 		
	
Accrued liabilities (1)		37,966 			22,296 		
Accrued income taxes		242 			280 		
Long-term debt due within one year		3,115 			5,362 		
Operating lease obligations due within one year		1,466 			1,793 		
Finance lease obligations due within one year		491 			511 		
	
Total current liabilities		92,645 			77,790 		
					
Long-term debt		41,194 			43,714 		
Long-term operating lease obligations		12,909 			16,171 		
Long-term finance lease obligations		3,847 			4,307 		
Deferred income taxes and other		14,370 			12,961 		

Commitments and contingencies					
					
Equity:					
Common stock		282 			284 		
Capital in excess of par value		3,646 			3,247 		
Retained earnings		88,763 			83,943 		
Accumulated other comprehensive loss		(11,393)			(12,805)		
Total Walmart shareholders’ equity		81,298 			74,669 		
Noncontrolling interest		6,233 			6,883 		
Total equity		87,531 			81,552 		
Total liabilities and equity		$	252,496 			$	236,495 		

1 As of January 31, 2021, prepaid expenses and other included assets held for sale of $19.2 billion and accrued liabilities included liabilities held for sale of $12.7 billion related to operations in the U.K. and Japan.

9
Walmart Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited) 

					
		Fiscal Year Ended	
		January 31,	
(Amounts in millions)		2021		2020	
Cash flows from operating activities:					
Consolidated net income		$	13,706 			$	15,201 		

Adjustments to reconcile consolidated net income to net cash provided by operating activities:					
Depreciation and amortization		11,152 			10,987 		
Net unrealized and realized gains		(8,589)			(1,886)		
Losses on disposal of business operations		8,401 			15 		
	
Asda pension contribution		— 			(1,036)		
Deferred income taxes		1,911 			320 		

Other operating activities		1,521 			1,981 		
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:					
Receivables, net		(1,086)			154 		
Inventories		(2,395)			(300)		
Accounts payable		6,966 			(274)		
Accrued liabilities		4,623 			186 		
Accrued income taxes		(136)			(93)		
Net cash provided by operating activities		36,074 			25,255 		
					
Cash flows from investing activities:					
Payments for property and equipment		(10,264)			(10,705)		
Proceeds from the disposal of property and equipment		215 			321 		
Proceeds from disposal of certain operations		56 			833 		
	
Payments for business acquisitions, net of cash acquired		(180)			(56)		
Other investing activities		102 			479 		
Net cash used in investing activities		(10,071)			(9,128)		
					
Cash flows from financing activities:					
Net change in short-term borrowings		(324)			(4,656)		
Proceeds from issuance of long-term debt		— 			5,492 		
Repayments of long-term debt		(5,382)			(1,907)		
	
Dividends paid		(6,116)			(6,048)		
Purchase of Company stock		(2,625)			(5,717)		
Dividends paid to noncontrolling interest		(434)			(555)		
	
Other financing activities		(1,236)			(908)		
Net cash used in financing activities		(16,117)			(14,299)		
					
Effect of exchange rates on cash, cash equivalents and restricted cash		235 			(69)		
					
Net increase in cash, cash equivalents and restricted cash		10,121 			1,759 		
Cash and cash equivalents reclassified as assets held for sale		(1,848)			— 		
Cash, cash equivalents and restricted cash at beginning of year		9,515 			7,756 		
Cash, cash equivalents and restricted cash at end of year		$	17,788 			$	9,515 		

10
Walmart Inc.
Supplemental Financial Information
(Unaudited)

Net sales and operating income

	Net Sales		Operating Income	
	Three Months Ended		Three Months Ended	
	January 31,		January 31,	
(dollars in millions)	2021	2020	Percent Change		2021	2020	Percent Change	
Walmart U.S.	$	99,585 		$	92,271 		7.9%		$	5,168 		$	4,403 		17.4%	
Walmart International	34,873 		33,049 		5.5%		964 		1,105 		-12.8%	
Sam’s Club	16,527 		15,288 		8.1%		389 		384 		1.3%	
Corporate and support	— 		— 		—		(1,034)		(570)		81.4%	
Consolidated	$	150,985 		$	140,608 		7.4%		$	5,487 		$	5,322 		3.1%	
								
	Net Sales		Operating Income	
	Fiscal Year Ended		Fiscal Year Ended	
	January 31,		January 31,	
(dollars in millions)	2021	2020	Percent Change		2021	2020	Percent Change	
Walmart U.S.	$	369,963 		$	341,004 		8.5%		$	19,116 		$	17,380 		10.0%	
Walmart International	121,360 		120,130 		1.0%		3,660 		3,370 		8.6%	
Sam’s Club	63,910 		58,792 		8.7%		1,906 		1,642 		16.1%	
Corporate and support	— 		— 		—		(2,134)		(1,824)		17.0%	
Consolidated	$	555,233 		$	519,926 		6.8%		$	22,548 		$	20,568 		9.6%	

U.S. comparable sales results1

 		With Fuel		Without Fuel		Fuel Impact	
 		13 Weeks Ended		13 Weeks Ended		13 Weeks Ended	
		1/29/2021		1/31/2020		1/29/2021		1/31/2020		1/29/2021		1/31/2020	
Walmart U.S.		8.5%		2.0%		8.6%		1.9%		-0.1%		0.1%	
Sam’s Club		8.5%		2.2%		10.8%		0.8%		-2.3%		1.4%	
Total U.S.		8.5%		2.0%		8.9%		1.8%		-0.4%		0.2%	
													
 		With Fuel		Without Fuel		Fuel Impact	
 		52 Weeks Ended		52 Weeks Ended		52 Weeks Ended	
		1/29/2021		1/31/2020		1/29/2021		1/31/2020		1/29/2021		1/31/2020	
Walmart U.S.		8.5%		2.8%		8.6%		2.8%		-0.1%		0.0%	
Sam’s Club		8.4%		1.5%		11.8%		0.7%		-3.4%		0.8%	
Total U.S.		8.4%		2.6%		9.0%		2.5%		-0.6%		0.1%	
Comparable sales is a metric that indicates the performance of our existing stores and clubs and it is important to review in conjunction with the Company’s financial results reported in accordance with GAAP.  Comparable sales excluding fuel is also an important, separate metric that indicates the performance of our existing stores and clubs without considering fuel, which is volatile and unpredictable. Other companies in our industry may calculate comparable sales differently, limiting the comparability of the metric.
1 Fiscal 2021 comparable sales are for the 13-week and 52-week periods ended January 29, 2021 compared to the 13-week and 52-week periods ended January 31, 2020. As the retail sales calendar for the year ended January 31, 2020 included 53 weeks, fiscal 2020 comparable sales are for the 14-week and 53-week periods ended January 31, 2020 compared to the 14-week and 53-week periods ended February 1, 2019.

11
Walmart Inc.
Reconciliations of and Other Information Regarding Non-GAAP Financial Measures
(Unaudited)

The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
Constant Currency
In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period’s currency exchange rates and the comparable prior year period’s currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months.
Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations.
The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the fiscal year ended January 31, 2021.

	Three Months Ended January 31, 2021		Fiscal Year Ended January 31, 2021	
	Walmart International		Consolidated		Walmart International		Consolidated	
(Dollars in millions)	2021	Percent Change1		2021	Percent Change1		2021	Percent Change1		2021	Percent Change1	
Total revenues:												
As reported	$	35,208 		5.3 	%		$	152,079 		7.3 	%		$	122,501 		0.9 	%		$	559,151 		6.7 	%	
Currency exchange rate fluctuations	252 		N/A		252 		N/A		5,053 		N/A		5,053 		N/A	

Constant currency total revenues	$	35,460 		6.1 	%		$	152,331 		7.5 	%		$	127,554 		5.0 	%		$	564,204 		7.7 	%	
												
Net sales:												
As reported	$	34,873 		5.5 	%		$	150,985 		7.4 	%		$	121,360 		1.0 	%		$	555,233 		6.8 	%	
Currency exchange rate fluctuations	256 		N/A		256 		N/A		5,022 		N/A		5,022 		N/A	

Constant currency net sales	$	35,129 		6.3 	%		$	151,241 		7.6 	%		$	126,382 		5.2 	%		$	560,255 		7.8 	%	
												
Operating income:												
As reported	$	964 		(12.8)	%		$	5,487 		3.1 	%		$	3,660 		8.6 	%		$	22,548 		9.6 	%	
Currency exchange rate fluctuations	17 		N/A		17 		N/A		210 		N/A		210 		N/A	

Constant currency operating income	$	981 		(11.2)	%		$	5,504 		3.4 	%		$	3,870 		14.8 	%		$	22,758 		10.6 	%	
1 Change versus prior year comparable period.

12

Adjusted operating income
Adjusted operating income is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain charges included in operating income calculated in accordance with GAAP. Management believes that adjusted operating income is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, adjusted operating income affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior year.
When we refer to adjusted operating income in constant currency this means adjusted operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The tables below reflect the calculation of adjusted operating income and adjusted operating income in constant currency for the three months and fiscal year ended January 31, 2021.

		Three Months Ended January 31,	
		Walmart US		Walmart International		Consolidated	
(Dollars in millions)		2021	2020		2021	2020		2021	2020	
Operating income:										
Operating income, as reported		$	5,168 		$	4,403 			$	964 		$	1,105 			$	5,487 		$	5,322 		
Officer compensation charge1		—	— 			—	— 			175	— 		
Business restructuring charge2		— 		450 			—	96 			—	546 		
Adjusted operating income		5,168	4,853		964	1,201		5,662	5,868	
Percent change3		6.5%	NP		(19.7)%	NP		(3.5)%	NP	
Currency exchange rate fluctuations		— 		— 			17	—		17	—	
Adjusted operating income, constant currency		$	5,168 		4,853 			$	981 		$	1,201 			$	5,679 		$	5,868 		
Percent change3		6.5%	NP		(18.3)%	NP		(3.2)%	NP	

		Fiscal Year Ended January 31,	
		Walmart US		Walmart International		Consolidated	
(Dollars in millions)		2021	2020		2021	2020		2021	2020	
Operating income:										
Operating income, as reported		$	19,116 		$	17,380 			$	3,660 		$	3,370 			$	22,548 		$	20,568 		
Officer compensation charge1		— 		—		—	—		175	—	
Business restructuring charge2		380	450		—	389		380	839	
Discrete tax item		—	—		77	—		77	—	
Adjusted operating income		19,496	17,830		3,737	3,759		23,180	21,407	
Percent change3		9.3%	NP		(0.6)%	NP		8.3%	NP	
Currency exchange rate fluctuations		—	—		228	—		228	—	
Adjusted operating income, constant currency		$	19,496 		$	17,830 			$	3,965 		$	3,759 			$	23,408 		$	21,407 		
Percent change3		9.3%	NP		5.5%	NP		9.3%	NP	
1 The charge relates to amounts which were not allocated to an operating segment and recorded in Corporate and support.
2 Fiscal 2021 includes a business restructuring charge resulting from changes to Walmart U.S. support teams to better support its omni-channel strategy recorded in the second quarter of fiscal 2021. Business restructuring charges during the fourth quarter of fiscal 2020 include (1) $399 million of non-cash impairment charges to write down of certain eCommerce assets in Walmart U.S. and $51 million in related severance costs; and (2) $96 million of non-cash impairment charges related to strategic business decisions that resulted in the write down of certain assets in Walmart International. Additionally, for fiscal 2020, business restructuring charges includes $293 million in non-cash impairment charges in the third quarter for the Jabong.com trade name.
3 Change versus prior year comparable period.
NP - Not provided

13
Free Cash Flow
We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. We had net cash provided by operating activities of $36.1 billion for the fiscal year ended January 31, 2021, which increased when compared to $25.3 billion for the fiscal year ended January 31, 2020 primarily due to the impact of the global health crisis which accelerated inventory sell-through, as well as the timing and payment of inventory purchases, incremental COVID-19 related expenses and certain benefit payments. We generated free cash flow of $25.8 billion for the fiscal year ended January 31, 2021, which increased when compared to $14.6 billion for the fiscal year ended January 31, 2020 due to the same reasons as the increase in net cash provided by operating activities, as well as $0.4 billion in decreased capital expenditures.    
Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the company’s financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.
Additionally, Walmart’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous methods may exist for calculating a company’s free cash flow. As a result, the method used by Walmart’s management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow.
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.

		Fiscal Year Ended	
 		January 31,	
(Dollars in millions)		2021		2020	
Net cash provided by operating activities		$	36,074 			$	25,255 		
Payments for property and equipment (capital expenditures)		(10,264)			(10,705)		
Free cash flow		$	25,810 			$	14,550 		
					
Net cash used in investing activities1		$	(10,071)			$	(9,128)		
Net cash used in financing activities		(16,117)			(14,299)		
1 “Net cash used in investing activities” includes payments for property and equipment, which is also included in our computation of free cash flow.

14
Adjusted EPS
Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year.
We adjust for the unrealized and realized gains and losses on our equity investments each quarter because although the investments are strategic decisions for the Company’s retail operations, management’s measurement of each strategy is primarily focused on the respective market’s operational results rather than the fair value of such investments. Additionally, management does not forecast changes in the fair value of its equity investments. Accordingly, management adjusts EPS each quarter for the realized and unrealized gains and losses related to those equity investments.
We have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2021 by adjusting EPS for the following:
1.the loss on sale of our operations in Japan and the U.K. which were determined to be held for sale as of January 31, 2021 and our operations in Walmart Argentina which were held for sale as of October 31, 2020 and subsequently divested in November 2020;
2.unrealized and realized gains and losses on the Company’s equity investments;
3.discrete tax items;
4.a charge related to officer compensation; and
5.a business restructuring charge resulting from changes to Walmart support teams to better support the Walmart U.S. omni-channel support strategy in the quarter ended July 31, 2020.

		Three Months Ended January 31, 2021	
Diluted earnings per share:									
Reported EPS								$	(0.74)		
	
Adjustments:		Pre-Tax Impact		Tax Impact1, 2		NCI Impact3		Net Impact	
Loss on certain international operations held for sale		$	2.60 			$	0.06 			$	— 			$	2.66 		
Unrealized and realized (gains) and losses on equity investments		(0.63)			0.14 			— 			(0.49)		
Discrete tax item		— 			(0.10)			— 			(0.10)		
Officer compensation charge		0.06 			— 			— 			0.06 		
Net adjustments4								$	2.13 		
									
Adjusted EPS4								$	1.39 		

		Fiscal Year Ended January 31, 20215	
Diluted earnings per share:									
Reported EPS								$	4.75 		
Adjustments:		Pre-Tax Impact		Tax Impact1,2		NCI Impact3		Net Impact	
Loss on certain international operations held for sale or sold		$	2.93 			$	0.06 			$	— 			$	2.99 		
Unrealized and realized (gains) and losses on equity investments		(3.04)			0.64 			— 			(2.40)		
	
Business restructuring charge		0.13 			(0.03)			— 			0.10 		
Officer compensation charge		0.06 			— 			— 			0.06 		
Discrete tax items		0.06 			(0.05)			(0.03)			(0.02)		
	
Net adjustments								$	0.73 		
									
Adjusted EPS								$	5.48 		
1 Calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. Minimal realizable tax benefit was provided in connection with the loss on certain international operations held for sale or sold, as well as the officer compensation charge.
2 The reported effective tax rate was (238.6%) and 33.3% for the three months and fiscal year ended January 31, 2021, respectively. Adjusted for the above items, the effective tax rate was 22.0% and 24.3% for the three months and fiscal year ended January 31, 2021, respectively.
3 Calculated based on the ownership percentages of our noncontrolling interests.
4 Adjusted EPS for the three months ended January 31, 2021 was calculated using weighted average shares outstanding of 2,844 million, which includes the dilutive impact of share-based payment awards.
5 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding.

15
As previously disclosed in our fiscal year ended January 31, 2020 press release, we have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2020 by adjusting EPS for the following: (1) unrealized gains and losses on the company’s equity investment in JD.com; (2) a tax benefit on the revaluation of deferred tax liabilities as a result of an income tax rate reduction in India; (3) certain income tax matters; and (4) certain business restructuring charges which primarily includes non-cash impairment charges on certain trade names and other long-lived assets.

		Three Months Ended January 31, 2020	
Diluted earnings per share:									
Reported EPS								$	1.45 		
	
Adjustments:		Pre-Tax Impact		Tax Impact1		NCI Impact2		Net Impact	
Unrealized (gains) and losses on JD.com investment		$	(0.33)			$	0.07 			$	— 			$	(0.26)		
Business restructuring charges3		0.20 			(0.05)			— 			0.15 		
Tax benefit from income tax rate reduction in India		— 			(0.14)			0.03 			(0.11)		
Certain income tax matters		0.01 			0.14 			— 			0.15 		
Net adjustments								$	(0.07)		
									
Adjusted EPS								$	1.38 		

		Fiscal Year Ended January 31, 20204	
Diluted earnings per share:									
Reported EPS								$	5.19 		
Adjustments:		Pre-Tax Impact		Tax Impact1		NCI Impact2		Net Impact	
Unrealized (gains) and losses on JD.com investment		$	(0.65)			$	0.14 			$	— 			$	(0.51)		
Business restructuring charges3		0.30 			(0.08)			(0.01)			$	0.21 		
Tax benefit from income tax rate reduction in India		— 			(0.14)			0.03 			(0.11)		
Certain income tax matters5		0.01 			0.14 			— 			0.15 		
Net adjustments								$	(0.26)		
									
Adjusted EPS								$	4.93 		

1 Calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions.
2 Calculated based on the ownership percentages of the noncontrolling interest.
3 Business restructuring charges primarily consists of non-cash impairment charges for certain trade names, acquired developed technology, and
property and equipment due to decisions that resulted in the write-off of certain assets in Walmart U.S. and Walmart International. Additionally,
for the fiscal year ended January 31, 2020, business restructuring charges includes non-cash impairment charges on the Jabong.com trade
name in Q3.
4 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding.
5 Represents a charge related to certain income tax matters and accrued interest unrelated to current period operations

Q4 FY2021 Financial presentation to accompany management commentary

 

This presentation contains statements or may include or may incorporate by reference, statements that may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Assumptions on which such forward-looking statements are based are also forward-looking statements. Such forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our consolidated, or one of our segment's or business’, economic performance or results of operations for future periods or as of future dates or events or developments that may occur in the future or discuss our plans, objectives or goals. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: the impact of the COVID-19 pandemic on our business and the global economy; economic, capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, and other strategic decisions; our ability to successfully integrate acquired businesses; changes in the trading prices of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average transactions in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; the amount of our net sales and operating expenses denominated in the U.S. dollar and various foreign currencies; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; our ability to respond to changing trends in consumer shopping habits; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; casualty and accident-related costs and insurance costs; the turnover in our workforce and labor costs, including healthcare and other benefit costs; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events, global health epidemics or pandemics and catastrophic events; and changes in generally accepted accounting principles in the United States. Our most recent annual report on Form 10-K and subsequent quarterly report on Form 10-Q filed with the SEC discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in the presentation. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this presentation. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made today are as of the date of this presentation. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. This presentation includes certain non-GAAP measures as defined under SEC rules, including net sales, revenue, and operating income on a constant currency basis, adjusted operating income, adjusted operating income in constant currency, adjusted EPS, free cash flow and return on investment. Refer to information about the non-GAAP measures contained in this presentation. Additional information as required by Regulation G and Item 10(e) of Regulation S-K regarding non-GAAP measures can be found in our most recent Form 10-K and our Form 8-K furnished as of the date of this presentation with the SEC, which are available at www.stock.walmart.com. 2 Safe harbor and non-GAAP measures

 

3 Metric FY22 Guidance Consolidated net sales Decline in constant currency • Excluding divestitures1, consolidated net sales growth up low single-digits Comp sales growth • Walmart U.S., up low single-digits, excluding fuel • Sam’s Club, up low single-digits, ex. fuel and tobacco Walmart International net sales Decline in constant currency • Higher growth percentage than U.S., excluding divestitures1 Consolidated expense leverage Maintain rate, or slightly deleverage Consolidated operating income Decline slightly in constant currency • Flat to up slightly, excluding divestitures1 Walmart U.S. operating income Increase slightly Effective tax rate 24.5% to 25.5% EPS Decline slightly • Flat to up slightly, excluding divestitures1 Capital expenditures Around $14 billion with a focus on supply chain, automation, customer-facing initiatives and technology 1 We completed the sale of Walmart Argentina in November 2020, our operations in the U.K. in February 2021 and expect to complete the sale of our operations in Japan in the first quarter of fiscal 2022. Fiscal 2022 full-year guidance The following guidance reflects the company’s expectations for fiscal year 2022 and is provided on a non-GAAP basis as the Company cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation, the timing of divestitures and the changes in fair value on the Company’s equity investments. Additionally, the guidance assumes we complete the sale of our business in Japan near the beginning of fiscal 2022. Assumptions in the guidance are dependent upon the duration and intensity of the COVID-19 health crisis globally, timing and effectiveness of global vaccines, the scale and duration of economic stimulus, employment trends and consumer confidence.

 

1 See press release located at www.stock.walmart.com and reconciliations at the end of presentation regarding non-GAAP financial measures. 4 Total revenue $152.1 +7.3% Total revenue, constant currency1 $152.3 +7.5% Net sales $151.0 +7.4% Net sales, constant currency1 $151.2 +7.6% Membership and Other Income $1.1 +2.9% Gross profit rate 23.7% +29 bps Operating expense as a percentage of net sales 20.8% +41 bps Operating income $5.5 +3.1% Adj. operating income, constant currency1 $5.7 -3.2% Effective tax rate (238.6)% Adjusted effective tax rate1 22.0% EPS -$0.74 -151.0% Adjusted EPS1 $1.39 +0.7% Walmart Inc. - Q4 FY21 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period

 

1 See press release located at www.stock.walmart.com and reconciliations at the end of presentation regarding non-GAAP financial measures. 5 Total revenue $559.2 +6.7% Total revenue, constant currency1 $564.2 +7.7% Net sales $555.2 +6.8% Net sales, constant currency1 $560.3 +7.8% Membership and Other Income $3.9 -3.0% Gross profit rate 24.3% +20 bps Operating expense as a percentage of net sales 20.9% +2 bps Operating income $22.5 +9.6% Adj. operating income, constant currency1 $23.4 +9.3% Effective tax rate 33.3% Adjusted effective tax rate1 24.3% EPS $4.75 -8.5% Adjusted EPS1 $5.48 +11.2% Walmart Inc. - FY21 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period

 

1 Debt to total capitalization calculated as of January 31, 2021. Debt includes short-term borrowings, long-term debt due within one year, finance lease obligations due within one year, long-term debt and long-term finance lease obligations. Total capitalization includes debt and total Walmart shareholders' equity. 2 Calculated for the fiscal year ended January 31, 2021. For ROI, see reconciliations at the end of presentation regarding non-GAAP financial measures. 6 Receivables, net Debt to capitalization1 $6.5 37.5% +3.7% -470 bps Inventories Return on assets2 $44.9 5.6% +1.2% -110 bps Accounts payable Return on investment2 $49.1 14.0% +4.6% +60 bps Walmart Inc. - Q4 FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period

 

1 See press release located at www.stock.walmart.com and reconciliations at the end of this presentation regarding non-GAAP financial measures. 2 $3.0 billion remaining of $20 billion authorization approved in October 2017. The company repurchased approximately 19 million shares in fiscal 2021. 7 Operating cash flow Dividends $36.1 $6.1 +$10.8 ($1.5 in 4Q21) Capital expenditures Share repurchases2 $10.3 $2.6 -$0.4 ($1.4 in 4Q21) Free cash flow1 Total shareholder returns $25.8 $8.7 +$11.3 ($2.9 in 4Q21) Walmart Inc. - FY21 Dollars in billions. Dollar changes may not recalculate due to rounding. Change is calculated as the change versus the prior year comparable period

 

8 Net Sales $99.6 +7.9% eCommerce net sales growth +69% eCommerce contribution to comp1, 2 ~620 bps Inventory Comp store: +1.1% Total: +7.1% Comparable sales1, 2 8.6% Comparable transactions -10.9% Comparable average ticket 21.9% • Strong eCommerce sales growth across channels throughout Q4; strong holiday sales on Walmart.com • Marketplace and pickup & delivery sales up triple-digits percentage • Comp sales strong throughout the quarter; robust holiday results and acceleration in January due to stimulus spending; Food comps accelerated as quarter progressed • Customers consolidated store shopping trips with significantly larger average baskets; more purchases via eCommerce; transaction volumes improved after store hours extended in November Format Growth Net Store Openings: 0 Remodels: ~145 stores Pickup: ~3,750 locations Same-day delivery: ~3,000 stores • Primarily reflects inventory build to support higher sales trends • In-stock continues to improve from Q3 levels 1 Comp sales for the 13-week period ended January 29, 2021 compared to the 13-week period ended January 31, 2020, and excludes fuel. 2 The results of new acquisitions are included in our comp sales metrics in the 13th month after acquisition. Walmart U.S. - Q4 FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period

 

9 Gross profit rate +20 bps Operating income $5.2 +17.4% Operating expense rate -22 bps • Strategic sourcing initiatives and fewer markdowns benefited gross profit • Progress on eCommerce margin rates continued with faster growth of marketplace sales, improved product mix, and benefits from a combined omni merchandise organization • Comparison benefited ~50 bps from lapping $450M business restructuring charge from last year • Negative effect from ~$900M incremental COVID costs (~91 bps deleverage) of which >90% related to associate bonuses and benefits; partial offset by reduced travel and professional services Adj. operating income1 $5.0 +16.7% Walmart U.S. - Q4 FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period Adj. operating income 1 $5.2 +6.5% 1 See press release located at www.stock.walmart.com and reconciliations at the end of presentation regarding non-GAAP financial measures.

 

Walmart U.S. - quarterly merchandise highlights 10 Category Comp sales Details Grocery + high single-digit • Food sales reflected broad-based strength across most categories and benefited from expanded store hours, better in-stocks and strong price positioning; consumables sales growth was led by strength in household chemicals and paper products • Store pickup and delivery saw record high sales volumes reflecting continued customer shift toward eCommerce and omni options Health & wellness + mid single-digit • Pharmacy comp sales growth due primarily to branded drug inflation and mix • Vision Center sales were soft reflecting continued COVID-related restrictions General merchandise + low double-digit • Strong sales performance in categories related to customer comfort, leisure, and recreation including home, electronics, sporting goods, toys, and outdoor living; stimulus spending benefited January sales • Sales negatively affected by continued phased reopening of Auto Care Centers, but improved versus Q3 

 

11 1 See press release located at www.stock.walmart.com and reconciliations at the end of presentation regarding non-GAAP financial measures. • Positive comp sales in 7/9 markets • Strong top line growth led by Flipkart, Mexico, and Canada • COVID-related selling restrictions disrupted operations in second half of quarter • eCommerce contributed 18% of total Inventory $9.2 -14.4% • Certain international operations classified as held for sale or sold • For remainder of markets, inventory increased in line with sales Gross profit rate +39 bps Operating income $1.0 -12.8% Adj. operating income1 $1.0 -19.7% Net sales, constant currency1 $35.1 +6.3% Operating expense rate +78 bps Operating income, constant currency1 $1.0 -11.2% Adj. operating income, constant currency1 $1.0 -18.3% • Lapping unrest in Chile and reduced sales of fuel in the U.K., offset by mix shift to lower margin formats Net sales $34.9 +5.5% Walmart International - Q4 FY21 Dollars in billions. Dollar changes may not recalculate due to rounding. Change is calculated as the change versus the prior year comparable period • Decision to repay tax relief in the U.K. contributed 66 bps of deleverage • COVID-related costs of approximately $100 million contributed 29 bps of deleverage

 

1 Walmex includes the consolidated results of Mexico and Central America 2 Comp sales for the United Kingdom are presented excluding fuel. We divested of our operations in the U.K. in February 2021 (Fiscal 2022). 3 ANTAD - Asociacion Nacional de Tiendas de Autoservicio y Departamentales; The National Association of Supermarkets and Department Stores 12 Walmex1 China Canada United Kingdom2 Net sales growth +4.9% +2.9% +8.6% +0.7% Comparable sales +3.7% +2.0% +8.6% +5.1% Comparable transactions -16.7% -12.6% -14.3% -17.9% Comparable ticket +24.5% +16.6% +26.7% +28.0% • Sales growth across all formats and categories • In Mexico, comp sales increased 4.9% • Comp sales outpaced ANTAD3 self-service and club reaching a 160bps gap to market • eCommerce net sales +171% • Strong sales in Sam's Club across all categories offset by softer traffic in Hypermarkets • Sam's Club delivered double digit comp sales growth • eCommerce net sales +65% • Strong sales in food and online grocery • eCommerce sales growth driven by strength across all categories • eCommerce net sales +229% • Strong sales in grocery, led by online grocery • Outpaced the online market, according to Kantar • Net sales negatively affected by lower demand for fuel • eCommerce net sales +76% Walmart International - Q4 FY21 Results are presented on a constant currency basis. Net sales and comp sales are presented on a nominal, calendar basis and include eCommerce results. Change is calculated as the change versus the prior year comparable period.

 

1 Walmex includes the consolidated results of Mexico and Central America. 13 Walmex1 China Canada United Kingdom Gross profit rate Increase Decrease Decrease Increase • Lapping price investments and higher markdowns in certain categories • Cost of goods savings initiatives • Higher costs to operate during the COVID-19 pandemic • Change in mix to lower margin formats • Higher markdowns primarily in apparel and mix shift to lower margin channels • Higher costs to operate during the COVID-19 pandemic and additional investments in customer experience, partially offset by strong sales • Sharp reduction in sales of fuel partially offset by change in mix to lower margin categories • Decision to repay tax relief Operating expense rate Increase Flat Increase Increase Operating income Slight Increase Flat Slight Decrease Decrease Walmart International - Q4 FY21 Results are presented on a constant currency basis. Change is calculated as the change versus the prior year comparable period • Certain restructuring charges offset by strong sales at Sam's Club

 

14 +10.8% Comparable sales +8.4% Comparable transactions +2.2% Average comparable ticket ~280 bps eCommerce contribution $15,255 +10% Net sales +12.9% Membership income 42.9999999999998 bps Gross profit rate +55.0000000000003 bps Operating expense rate $362 4.9% Operating income With Fuel Without Fuel Comparable sales1 +8.5% Net sales $16.5 +8.1% eCommerce net sales growth +42% Comparable sales +8.5% Membership income +12.9% Gross profit rate +53 bps Operating expense rate +73 bps Inventory $4.8 0.5% Operating income $0.4 +1.3% • Improvement in total number of members, overall renewal rates, Plus renewal rates and Plus penetration rate • Highest quarterly increase in more than 6 years • New member count increased approximately 28% • Wage & club investments, incremental COVID-19 costs and lower tobacco & fuel sales weighed on operating expense leverage • Incremental COVID-19 costs of ~$80 mil. negatively affected expense leverage by about 50 bps • Favorable sales mix, including lower tobacco and fuel sales, partially offset by higher eCommerce fulfillment expense • Strong curbside performance and solid direct-to-home contribution • Comparable sales strength driven by an increase in both transactions and average ticket • Broad strength across categories, led by food and consumables • Tobacco negatively affected comp sales 1 Comp sales for the 13-week period ended January 29, 2021 compared to the 13-week period ended January 31, 2020. • Overall in-stock position continues to improve Sam's Club - Q4 FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period

 

15 $16,527 +8.1% Net Sales +33% eCommerce net sales growth +8.5% Comparable sales +53 bps Gross profit rate +73 bps Operating expense rate $389 1.3% Operating income Without Fuel Net sales $15.3 +10.4% Operating expense rate +55 bps Gross profit rate +43 bps Operating income $0.4 +4.9% Comparable transactions +8.4% Comparable sales1, 2 +10.8% eCommerce contribution ~280 bps Average comparable ticket +2.2% 1 Comp sales for the 13-week period ended January 29, 2021 compared to the 13-week period ended January 31, 2020, and excludes fuel. 2 Tobacco negatively affected comp sales by 410 basis points. Sam's Club - Q4 FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period

 

16 Category Comp sales Details Fresh / Freezer / Cooler + high teens • Fresh meat & seafood, frozen and produce performed well Grocery and beverage + high teens • Dry grocery, drinks and snacks performed well Consumables + low 20% • Broad-based strength, including laundry, paper goods and beauty aids Home and apparel + high single-digit • Kitchen, home improvement and toys performed well Technology, office and entertainment - low double-digit • Personal electronics and TVs performed well but were more than offset by reduced mobile phone sales • Sam's entered into a new strategic arrangement in its mobile phone business and no longer recognizes the full transaction value; instead, it receives a commission on each sale Health and wellness + mid teens • OTC performed well Sam's Club - quarterly financial highlights

 

We include Return on Assets ("ROA"), which is calculated in accordance with U.S. generally accepted accounting principles ("GAAP") as well as Return on Investment ("ROI") as measures to assess returns on assets. Management believes ROI is a meaningful measure to share with investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts. We consider ROA to be the financial measure computed in accordance with GAAP that is the most directly comparable financial measure to our calculation of ROI. ROA was 5.6 percent and 6.7 percent for the fiscal years ended January 31, 2021 and 2020, respectively. The decrease in ROA was primarily due to the losses on certain international operations held for sale or sold, partially offset by the fair value change in our equity investments as well as the increase in operating income. ROI was 14.0 percent and 13.4 percent for the fiscal years ended January 31, 2021 and 2020. The increase in ROI was primarily due to the increase in operating income. We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing twelve months divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period. For the fiscal year ended January 31, 2020, lease related assets and associated accumulated amortization are included in the denominator at their carrying amount as of that balance sheet date, rather than averaged, because they are not directly comparable to the prior year calculation which included rent for the trailing 12 months multiplied by a factor of 8. A two-point average was used for leased assets beginning in fiscal 2021, after one full year from the date of adoption of the new lease standard. Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that exclude and include amounts that are included and excluded in the most directly comparable GAAP financial measure. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. As mentioned above, we consider ROA to be the financial measure computed in accordance with generally accepted accounting principles most directly comparable to our calculation of ROI. ROI differs from ROA (which is consolidated net income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities to arrive at total invested capital. Because of the adjustments mentioned above, we believe ROI more accurately measures how we are deploying our key assets and is more meaningful to investors than ROA. Although ROI is a standard financial measure, numerous methods exist for calculating a company's ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI. 17 Non-GAAP measures - ROI

 

The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows: 18 3 Upon adoption of ASU 2016-02, Leases, a factor of eight times rent is no longer included in the calculation of ROI on a prospective basis as operating lease assets are now recorded on the Consolidated Balance Sheet. 1 The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2. 2 The average is based on the addition of 'total assets without leased assets, net' at the end of the current period to 'total assets without leased assets, net' at the end of the prior period and dividing by 2, plus 'leased assets, net' at the end of the current period. 3 The average is based on the addition of 'accumulated depreciation and amortization, without leased assets' at the end of the current period to 'accumulated depreciation and amortization, without leased assets' at the end of the prior period and dividing by 2, plus 'accumulated amortization on leased assets' at the end of the current period. NP = not provided CALCULATION OF RETURN ON ASSETS CALCULATION OF RETURN ON INVESTMENT Fiscal Year Fiscal Year Ended January 31, Ended January 31, (Dollars in millions) 2021 2020 (Dollars in millions) 2021 2020 Numerator Numerator Consolidated net income $ 13,706 $ 15,201 Operating income $ 22,548 $ 20,568 Denominator + Interest income 121 189 Average total assets1 $ 244,496 $ 227,895 + Depreciation and amortization 11,152 10,987 Return on assets (ROA) 5.6 % 6.7 % + Rent 2,626 2,670 ROI operating income $ 36,447 $ 34,414 January 31, Denominator Certain Balance Sheet Data 2021 2020 2019 Average total assets1,2 $ 244,496 $ 235,277 Total assets $ 252,496 $ 236,495 $ 219,295 + Average accumulated depreciation and amortization1,2 94,351 90,351 Leased assets, net NP 21,841 7,078 - Average accounts payable1 48,057 47,017 Total assets without leased assets, net NP 214,654 212,217 - Average accrued liabilities1 30,131 22,228 Accumulated depreciation and amortization 94,351 94,514 87,175 Average invested capital $ 260,659 $ 256,383 Accumulated amortization on leased assets NP 4,694 5,682 Return on investment (ROI) 14.0 % 13.4 % Accumulated depreciation and amortization, without leased assets NP 89,820 81,493 Accounts payable 49,141 46,973 47,060 Accrued liabilities 37,966 22,296 22,159 1 The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the corresponding prior period and dividing by 2. Average total assets as used in ROA includes the average impact of the adoption of ASU 2016-02, Leases (Topic 842). 2 For the fiscal year ended January 31, 2020, as a result of adopting ASU 2016-02, average total assets is based on the average of total assets without leased assets, net plus leased assets, net as of January 31, 2020. Average accumulated depreciation and amortization is based on the average of accumulated depreciation and amortization, without leased assets plus accumulated amortization on leased assets as of January 31, 2020. NP - not provided Non-GAAP measures - ROI (cont.)

 

1 "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow. 19 We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. We had net cash provided by operating activities of $36.1 billion for the fiscal year ended January 31, 2021, which increased when compared to $25.3 billion for the fiscal year ended January 31, 2020 primarily due to the impact of the global health crisis which accelerated inventory sell-through, as well as the timing and payment of inventory purchases, incremental COVID-19 related expenses and certain benefit payments. We generated free cash flow of $25.8 billion for the fiscal year ended January 31, 2021, which increased when compared to $14.6 billion for the fiscal year ended January 31, 2020 due to the same reasons as the increase in net cash provided by operating activities, as well as $0.4 billion in decreased capital expenditures.. Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the company’s financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, Walmart’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows. Although other companies report their free cash flow, numerous methods may exist for calculating a company’s free cash flow. As a result, the method used by Walmart’s management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow. The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities. Fiscal Year Ended January 31, (Dollars in millions) 2021 2020 Net cash provided by operating activities $ 36,074 $ 25,255 Payments for property and equipment (capital expenditures) (10,264) (10,705) Free cash flow $ 25,810 $ 14,550 Net cash used in investing activities1 $ (10,071) $ (9,128) Net cash used in financing activities (16,117) (14,299) Non-GAAP measures - free cash flow

 

1 Change versus prior year comparable period. 20 In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period’s currency exchange rates and the comparable prior year period’s currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non- USD acquisitions until owned for 12 months. Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the fiscal year ended January 31, 2021. Three Months Ended January 31, 2021 Fiscal Year Ended January 31, 2021 2021 Percent Change1 2021 Percent Change1 2021 Percent Change1 2021 Percent Change1 (Dollars in millions) Walmart International Consolidated Walmart International Consolidated Total revenues: As reported $ 35,208 5.3 % $ 152,079 7.3 % $ 122,501 0.9 % $ 559,151 6.7 % Currency exchange rate fluctuations 252 N/A 252 N/A 5,053 N/A 5,053 N/A Constant currency total revenues $ 35,460 6.1 % $ 152,331 7.5 % $ 127,554 5.0 % $ 564,204 7.7 % Net sales: As reported $ 34,873 5.5 % $ 150,985 7.4 % $ 121,360 1.0 % $ 555,233 6.8 % Currency exchange rate fluctuations 256 N/A 256 N/A 5,022 N/A 5,022 N/A Constant currency net sales $ 35,129 6.3 % $ 151,241 7.6 % $ 126,382 5.2 % $ 560,255 7.8 % Operating income: As reported $ 964 -12.8 % $ 5,487 3.1 % $ 3,660 8.6 % $ 22,548 9.6 % Currency exchange rate fluctuations 17 N/A 17 N/A 210 N/A 210 N/A Constant currency operating income $ 981 -11.2 % $ 5,504 3.4 % $ 3,870 14.8 % $ 22,758 10.6 % Non-GAAP measures - constant currency

 

1The charge relates to amounts which were not allocated to an operating segment and recorded in Corporate and support. 2 Fiscal 2021 includes a business restructuring charge resulting from changes to Walmart U.S. support teams to better support its omni-channel strategy recorded in the second quarter of fiscal 2021. Business restructuring charges during the fourth quarter of fiscal 2020 include (1) $399 million of non-cash impairment charges to write down of certain eCommerce assets in Walmart U.S. and $51 million in related severance costs; and (2) $96 million of non-cash impairment charges related to strategic business decisions that resulted in the write down of certain assets in Walmart International. Additionally, for fiscal 2020, business restructuring charges includes $293 million in non-cash impairment charges in the third quarter for the Jabong.com trade name. 3 Change versus prior year comparable period. NP - not provided 21 Adjusted operating income is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain charges included in operating income calculated in accordance with GAAP. Management believes that adjusted operating income is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, adjusted operating income affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior year. When we refer to adjusted operating income in constant currency this means adjusted operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The tables below reflect the calculation of adjusted operating income and adjusted operating income in constant currency for the fiscal year ended January 31, 2021. Three Months Ended January 31, Fiscal Year Ended January 31, Walmart US Walmart International Consolidated Walmart US Walmart International Consolidated 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Operating income: Operating income, as reported 5,168 4,403 964 1,105 5,487 5,322 19,116 17,380 3,660 3,370 22,548 20,568 Officer compensation charge1 — — — — 175 — — — — — 175 — Business restructuring charge2 — 450 — 96 — 546 380 450 — 389 380 839 Discrete tax item — — — — — — — — 77 — 77 — Adjusted operating income 5,168 4,853 964 1,201 5,662 5,868 19,496 17,830 3,737 3,759 23,180 21,407 Percent change3 6.5 % NP (19.7) % NP (3.5) % NP 9.3 % NP (0.6) % NP 8.3 % NP Currency exchange rate fluctuations — — 17 — 17 — — — 228 — 228 — Adjusted operating income, constant currency 5,168 4,853 981 1,201 5,679 5,868 19,496 17,830 3,965 3,759 23,408 21,407 Percent change3 6.5 % NP (18.3) % NP (3.2) % NP 9.3 % NP 5.5 % NP 9.3 % NP Non-GAAP measures - adjusted operating income

 

Three Months Ended January 31, 2021 Tax Rate Fiscal Year Ended January 31, 2021 Tax Rate Income (loss) before income taxes Provision for income taxes1 Income (loss) before income taxes Provision for income taxes1 As reported $ (593) $ 1,415 (238.6)% $ 20,564 $ 6,858 33.3% Adjustments: Loss on certain international operations held for sale or sold 7,388 179 8,346 179 Unrealized and realized (gains) and losses on equity investments (1,788) 391 (8,671) 1,841 Business restructuring charge — — 380 (92) Discrete tax item — (283) 179 (150) Officer compensation charge 175 (11) 175 (11) Net adjustments $ 5,775 $ 276 $ 409 $ 1,767 Adjusted $ 5,182 $ 1,139 22.0% $ 20,973 $ 5,091 24.3% Non-GAAP measures - adjusted effective tax rate The adjusted effective tax rate is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain impacts included in calculating the effective tax rate in accordance with GAAP. Management believes that the adjusted effective tax rate is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, the adjusted effective tax rate affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior year. 1 Calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. Minimal realizable tax benefit was provided in connection with the loss on certain international operations held for sale or sold, as well as the officer compensation charge. 

 

23 Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year. We adjust for the unrealized and realized gains and losses on our equity investments each quarter because although the investments are strategic decisions for the Company’s retail operations, management’s measurement of each strategy is primarily focused on the respective market’s operational results rather than the fair value of such investments. Additionally, management does not forecast changes in the fair value of its equity investments. Accordingly, management adjusts EPS each quarter for the realized and unrealized gains and losses related to those equity investments. We have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2021 by adjusting EPS for the following: 1. the loss on sale of our operations in Japan and the U.K. which were determined to be held for sale as of January 31, 2021 and our operations in Walmart Argentina which were held for sale as of October 31, 2020 and subsequently divested in November 2020; 2. unrealized and realized gains and losses on the Company’s equity investments; 3. discrete tax items; 4. a charge related to officer compensation; and 5. a business restructuring charge resulting from changes to Walmart support teams to better support the Walmart U.S. omni- channel support strategy in the quarter ended July 31, 2020. Non-GAAP measures - adjusted EPS

 

24 1 Change versus prior year comparable period. 2 Calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. Minimal realizable tax benefit was provided in connection with the loss on certain international operations held for sale or sold, as well as the officer compensation charge. 3 The reported effective tax rate was (238.6%) and 33.3% for the three months and fiscal year ended January 31, 2021, respectively. Adjusted for the above items, the effective tax rate was 22.0% and 24.3% for the three months and fiscal year ended January 31, 2021, respectively. 4 Calculated based on the ownership percentages of our noncontrolling interests. 5 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding. 6 Adjusted EPS for the three months ended January 31, 2021 was calculated using weighted average shares outstanding of 2,844 million, which includes the dilutive impact of share-based payment awards. Three Months Ended January 31, 2021 Percent Change1 Fiscal Year Ended January 31, 20215 Percent Change1 Diluted earnings per share: Reported EPS $ (0.74) -151.0% $ 4.75 (8.5)% Adjustments: Pre-Tax Impact Tax Impact2,3 NCI Impact4 Net Impact Pre-Tax Impact Tax Impact2,3 NCI Impact4 Net Impact Loss on certain international operations held for sale or sold $ 2.60 $ 0.06 $ — $ 2.66 $ 2.93 $ 0.06 $ 2.99 Unrealized and realized (gains) and losses on equity investments (0.63) 0.14 — (0.49) (3.04) 0.64 — (2.40) Business restructuring charge — — — — 0.13 (0.03) — 0.10 Discrete tax item — (0.10) — (0.10) 0.06 (0.05) (0.03) (0.02) Officer compensation charge 0.06 — — 0.06 0.06 — — 0.06 Net adjustments 6 $ 2.13 $ 0.73 Adjusted EPS 6 $ 1.39 0.7% $ 5.48 11.2% Non-GAAP measures - adjusted EPS (cont.)

 

25 As previously disclosed in our fiscal year ended January 31, 2020 press release, we have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2020 by adjusting EPS for the following: (1) unrealized gains and losses on the company’s equity investment in JD.com; (2) a tax benefit on the revaluation of deferred tax liabilities as a result of an income tax rate reduction in India; (3) certain income tax matters; and (4) certain business restructuring charges which primarily includes non-cash impairment charges on certain trade names and other long-lived assets. Three Months Ended January 31, 2020 Fiscal Year Ended January 31, 20203 Diluted earnings per share: Reported EPS $ 1.45 $ 5.19 Adjustments: Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Unrealized (gains) and losses on JD.com investment $ (0.33) $ 0.07 $ — $ (0.26) $ (0.65) $ 0.14 $ — $ (0.51) Business restructuring charges4 0.20 (0.05) — 0.15 0.30 (0.08) (0.01) 0.21 Tax benefit from income tax rate reduction in India — (0.14) 0.03 (0.11) — (0.14) 0.03 (0.11) Certain income tax matters5 0.01 0.14 — 0.15 0.01 0.14 — 0.15 Net Adjustments $ (0.07) $ (0.26) Adjusted EPS $ 1.38 $ 4.93 Non-GAAP measures - adjusted EPS (cont.) 1 Calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. 2 Calculated based on the ownership percentages of the noncontrolling interest. 3 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding. 4 Business restructuring charges primarily consists of non-cash impairment charges for certain trade names, acquired developed technology, and property and equipment due to decisions that resulted in the write-off of certain assets in Walmart U.S. and Walmart International. Additionally, for the fiscal year ended January 31, 2020, business restructuring charges includes non-cash impairment charges on the Jabong.com trade name in Q3. 5 Represents a charge related to certain income tax matters and accrued interest unrelated to current period operations

 

• Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology 26 Additional resources at stock.walmart.com