WALMART INC., 10-Q filed on 12/4/2019
Quarterly Report
v3.19.3
Document And Entity Information - shares
9 Months Ended
Oct. 31, 2019
Dec. 02, 2019
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2019  
Document Transition Report false  
Entity File Number 001-6991  
Entity Registrant Name WALMART INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 71-0415188  
Entity Address, Address Line One 702 S.W. 8th Street  
Entity Address, City or Town Bentonville  
Entity Address, State or Province AR  
Entity Address, Postal Zip Code 72716  
City Area Code 479  
Local Phone Number 273-4000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,837,174,936
Entity Central Index Key 0000104169  
Current Fiscal Year End Date --01-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Common Stock, par value $0.10 per share    
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol  WMT  
Security Exchange Name NYSE  
1.900% Notes Due 2022    
Title of 12(b) Security 1.900% Notes Due 2022  
Security Exchange Name NYSE  
No Trading Symbol Flag true  
2.550% Notes Due 2026    
Title of 12(b) Security 2.550% Notes Due 2026  
Security Exchange Name NYSE  
No Trading Symbol Flag true  
v3.19.3
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2019
Oct. 31, 2018
Oct. 31, 2019
Oct. 31, 2018
Revenues:        
Net sales $ 126,981 $ 123,897 $ 379,318 $ 372,586
Membership and other income 1,010 997 2,975 3,026
Total revenues 127,991 124,894 382,293 375,612
Costs and expenses:        
Cost of sales 95,900 93,116 286,857 280,394
Operating, selling, general and administrative expenses 27,373 26,792 80,190 79,328
Operating income 4,718 4,986 15,246 15,890
Interest:        
Debt 547 501 1,693 1,398
Finance, capital lease and financing obligations 86 92 254 279
Interest income (44) (59) (148) (153)
Interest, net 589 534 1,799 1,524
Other (gains) and losses (244) 1,876 (996) 8,570
Income before income taxes 4,373 2,576 14,443 5,796
Provision for income taxes 1,052 759 3,536 2,430
Consolidated net income 3,321 1,817 10,907 3,366
Consolidated net income attributable to noncontrolling interest (33) (107) (167) (383)
Consolidated net income attributable to Walmart $ 3,288 $ 1,710 $ 10,740 $ 2,983
Basic net income (loss) per common share:        
Basic net income (loss) per common share attributable to Walmart (in dollars per share) $ 1.16 $ 0.58 $ 3.76 $ 1.01
Diluted net income (loss) per common share:        
Diluted net income (loss) per common share attributable to Walmart (in dollars per share) $ 1.15 $ 0.58 $ 3.74 $ 1.01
Weighted-average common shares outstanding:        
Basic (shares) 2,843 2,924 2,855 2,940
Diluted (shares) 2,861 2,941 2,872 2,956
Dividends declared per common share (in dollars per share) $ 0 $ 0 $ 2.12 $ 2.08
v3.19.3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2019
Oct. 31, 2018
Oct. 31, 2019
Oct. 31, 2018
Statement of Comprehensive Income [Abstract]        
Consolidated net income $ 3,321 $ 1,817 $ 10,907 $ 3,366
Consolidated net income attributable to noncontrolling interest (33) (107) (167) (383)
Consolidated net income attributable to Walmart 3,288 1,710 10,740 2,983
Other comprehensive income (loss), net of income taxes        
Currency translation and other (1,188) 1,020 (762) (200)
Net investment hedges (113) 114 135 375
Cash flow hedges (12) (109) (301) (341)
Minimum pension liability 8 12 13 64
Other comprehensive income (loss), net of income taxes (1,305) 1,037 (915) (102)
Other comprehensive (income) loss attributable to noncontrolling interest 193 123 75 250
Other comprehensive income (loss) attributable to Walmart (1,112) 1,160 (840) 148
Comprehensive income, net of income taxes 2,016 2,854 9,992 3,264
Comprehensive (income) loss attributable to noncontrolling interest 160 16 (92) (133)
Comprehensive income attributable to Walmart $ 2,176 $ 2,870 $ 9,900 $ 3,131
v3.19.3
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Oct. 31, 2019
Jan. 31, 2019
Oct. 31, 2018
Current assets:      
Cash and cash equivalents $ 8,606 $ 7,722 $ 9,174
Receivables, net 5,612 6,283 5,785
Inventories 51,546 44,269 50,380
Prepaid expenses and other 2,148 3,623 4,107
Total current assets 67,912 61,897 69,446
Property and equipment, net 104,326 104,317 104,358
Operating lease right-of-use assets, net 16,944 0 0
Finance lease right-of-use assets, net 4,155 0 0
Property under capital lease and financing obligations, net 0 7,078 6,991
Goodwill 30,716 31,181 31,044
Other long-term assets 15,777 14,822 14,744
Total assets 239,830 219,295 226,583
Current liabilities:      
Short-term borrowings 4,926 5,225 7,795
Accounts payable 49,750 47,060 49,729
Dividends payable 1,507 0 1,516
Accrued liabilities 20,973 22,159 22,795
Accrued income taxes 327 428 616
Long-term debt due within one year 4,093 1,876 2,591
Operating lease obligations due within one year 1,740 0 0
Finance lease obligations due within one year 468 0 0
Capital lease and financing obligations due within one year 0 729 709
Total current liabilities 83,784 77,477 85,751
Long-term debt 44,912 43,520 43,275
Long-term operating lease obligations 15,741 0 0
Long-term finance lease obligations 4,068 0 0
Long-term capital lease and financing obligations 0 6,683 6,621
Deferred income taxes and other 13,018 11,981 11,467
Commitments and contingencies
Equity:      
Common stock 284 288 291
Capital in excess of par value 3,091 2,965 2,887
Retained earnings 80,656 80,785 80,287
Accumulated other comprehensive loss (12,382) (11,542) (11,469)
Total Walmart shareholders' equity 71,649 72,496 71,996
Noncontrolling interest 6,658 7,138 7,473
Total equity 78,307 79,634 79,469
Total liabilities and equity $ 239,830 $ 219,295 $ 226,583
v3.19.3
Condensed Consolidated Statement Of Shareholders' Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss
Total Walmart shareholders' equity
Noncontrolling interest
Balances, in shares at Jan. 31, 2018   2,952          
Balances at Jan. 31, 2018 $ 80,822 $ 295 $ 2,648 $ 85,107 $ (10,181) $ 77,869 $ 2,953
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification 924     2,361 (1,436) 925 (1)
Consolidated net income 2,276     2,134   2,134 142
Other comprehensive income (loss), net of income taxes 1,499       1,336 1,336 163
Dividends (6,135)     (6,135)   (6,135)  
Purchase of Company stock (in shares)   (5)          
Purchase of Company stock (508) $ (1) (15) (492)   (508)  
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders (489)           (489)
Other, in shares   4          
Other (65)   (76) 7   (69) 4
Balances, in shares at Apr. 30, 2018   2,951          
Balances at Apr. 30, 2018 78,324 $ 294 2,557 82,982 (10,281) 75,552 2,772
Balances, in shares at Jan. 31, 2018   2,952          
Balances at Jan. 31, 2018 80,822 $ 295 2,648 85,107 (10,181) 77,869 2,953
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 3,366            
Other comprehensive income (loss), net of income taxes (102)            
Balances, in shares at Oct. 31, 2018   2,912          
Balances at Oct. 31, 2018 79,469 $ 291 2,887 80,287 (11,469) 71,996 7,473
Balances, in shares at Apr. 30, 2018   2,951          
Balances at Apr. 30, 2018 78,324 $ 294 2,557 82,982 (10,281) 75,552 2,772
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income (727)     (861)   (861) 134
Other comprehensive income (loss), net of income taxes (2,638)       (2,348) (2,348) (290)
Dividends 14     14   14  
Purchase of Company stock (in shares)   (16)          
Purchase of Company stock (1,366) $ (1) (41) (1,324)   (1,366)  
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders 9           9
Other 196 $ 1 194 (1)   194 2
Balances, in shares at Jul. 31, 2018   2,935          
Balances at Jul. 31, 2018 73,812 $ 294 2,710 80,810 (12,629) 71,185 2,627
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 1,817     1,710   1,710 107
Other comprehensive income (loss), net of income taxes 1,037       1,160 1,160 (123)
Dividends 14     14   14  
Purchase of Company stock (in shares)   (25)          
Purchase of Company stock (2,320) $ (3) (75) (2,242)   (2,320)  
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders (3)           (3)
Noncontrolling Interest, Increase from Business Combination 4,852           4,852
Other, in shares   2          
Other 260   252 (5)   247 13
Balances, in shares at Oct. 31, 2018   2,912          
Balances at Oct. 31, 2018 79,469 $ 291 2,887 80,287 (11,469) 71,996 7,473
Balances, in shares at Jan. 31, 2019   2,878          
Balances at Jan. 31, 2019 79,634 $ 288 2,965 80,785 (11,542) 72,496 7,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification (300)     (266)   (266) (34)
Consolidated net income 3,906     3,842   3,842 64
Other comprehensive income (loss), net of income taxes 485       451 451 34
Dividends (6,071)     (6,071)   (6,071)  
Purchase of Company stock (in shares)   (21)          
Purchase of Company stock (2,087) $ (2) (73) (2,012)   (2,087)  
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders (481)           (481)
Other, in shares   5          
Other (176)   (158) (2)   (160) (16)
Balances, in shares at Apr. 30, 2019   2,862          
Balances at Apr. 30, 2019 74,910 $ 286 2,734 76,276 (11,091) 68,205 6,705
Balances, in shares at Jan. 31, 2019   2,878          
Balances at Jan. 31, 2019 79,634 $ 288 2,965 80,785 (11,542) 72,496 7,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 10,907            
Other comprehensive income (loss), net of income taxes (915)            
Balances, in shares at Oct. 31, 2019   2,839          
Balances at Oct. 31, 2019 78,307 $ 284 3,091 80,656 (12,382) 71,649 6,658
Balances, in shares at Apr. 30, 2019   2,862          
Balances at Apr. 30, 2019 74,910 $ 286 2,734 76,276 (11,091) 68,205 6,705
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 3,680     3,610   3,610 70
Other comprehensive income (loss), net of income taxes (95)       (179) (179) 84
Dividends 15     15   15  
Purchase of Company stock (in shares)   (15)          
Purchase of Company stock (1,555) $ (2) (54) (1,499)   (1,555)  
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders 6           6
Other 170 $ 1 200 30   231 (61)
Balances, in shares at Jul. 31, 2019   2,847          
Balances at Jul. 31, 2019 77,131 $ 285 2,880 78,432 (11,270) 70,327 6,804
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 3,321     3,288   3,288 33
Other comprehensive income (loss), net of income taxes (1,305)       (1,112) (1,112) (193)
Dividends 5     5   5  
Purchase of Company stock (in shares)   (10)          
Purchase of Company stock (1,108) $ (1) (39) (1,068)   (1,108)  
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders 3           3
Other, in shares   2          
Other 260   250 (1)   249 11
Balances, in shares at Oct. 31, 2019   2,839          
Balances at Oct. 31, 2019 $ 78,307 $ 284 $ 3,091 $ 80,656 $ (12,382) $ 71,649 $ 6,658
v3.19.3
Consolidated Statement Of Shareholders' Equity (Parenthetical) - $ / shares
3 Months Ended 9 Months Ended
Oct. 31, 2019
Oct. 31, 2018
Oct. 31, 2019
Oct. 31, 2018
Statement of Stockholders' Equity [Abstract]        
Dividends declared per common share (in dollars per share) $ 0 $ 0 $ 2.12 $ 2.08
v3.19.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
9 Months Ended
Oct. 31, 2019
Oct. 31, 2018
Cash flows from operating activities:    
Consolidated net income $ 10,907 $ 3,366
Adjustments to reconcile consolidated net income to net cash provided by operating activities:    
Depreciation and amortization 8,159 7,947
Unrealized (gains) and losses (911) 3,727
(Gains) and losses for disposal of business operations (1) 4,846
Deferred income taxes 574 (346)
Other operating activities 938 735
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:    
Receivables, net 661 178
Inventories (7,558) (7,279)
Accounts payable 2,925 4,137
Accrued liabilities (1,107) 103
Accrued income taxes (48) (106)
Net cash provided by operating activities 14,539 17,308
Cash flows from investing activities:    
Payments for property and equipment (7,765) (7,014)
Proceeds from the disposal of property and equipment 218 308
Proceeds from the disposal of certain operations 833 0
Payments for business acquisitions, net of cash acquired (56) (13,269)
Other investing activities 485 (579)
Net cash used in investing activities (6,285) (20,554)
Cash flows from financing activities:    
Net change in short-term borrowings (282) 2,611
Proceeds from issuance of long-term debt 5,492 15,851
Repayments of long-term debt (1,907) (3,050)
Dividends paid (4,545) (4,597)
Purchase of Company stock (4,829) (4,161)
Dividends paid to noncontrolling interest (407) (252)
Other financing activities (735) (481)
Net cash provided by (used in) financing activities (7,213) 5,921
Effect of exchange rates on cash, cash equivalents and restricted cash (166) (485)
Net increase (decrease) in cash, cash equivalents and restricted cash 875 2,190
Cash, cash equivalents and restricted cash at beginning of year 7,756 7,014
Cash, cash equivalents and restricted cash at end of period $ 8,631 $ 9,204
v3.19.3
Summary of Significant Accounting Policies (Notes)
9 Months Ended
Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation Summary of Significant Accounting Policies
Basis of Presentation
The Condensed Consolidated Financial Statements of Walmart Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019 ("fiscal 2019"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of October related to the operations consolidated using a lag that materially affected the Condensed Consolidated Financial Statements.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Restricted Cash
Restricted cash not classified as part of cash and cash equivalents was $25 million and $34 million as of October 31, 2019 and January 31, 2019, respectively, and was primarily recorded in other long-term assets in the Condensed Consolidated Balance Sheets. Restricted cash not classified as part of cash and cash equivalents was $30 million and approximately $0.3 billion as of October 31, 2018 and January 31, 2018, respectively, and was primarily recorded in other long-term assets in the Condensed Consolidated Balance Sheets.
Inventories
At October 31, 2019 and January 31, 2019, the Company's inventories valued at LIFO approximated those inventories as if they were valued at FIFO.
Leases
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lease assets and liabilities to be recorded on the balance sheet.  The Company adopted this ASU and related amendments as of February 1, 2019 under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification as well as relief from reviewing expired or existing contracts to determine if they contain leases.  For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption.
The adoption of this ASU and related amendments resulted in a $14.8 billion increase to total assets and a $15.1 billion increase to total liabilities in the first quarter of the fiscal year ending January 31, 2020 ("fiscal 2020"). In the first quarter of fiscal 2020, the Company recognized $16.8 billion and $17.5 billion of operating lease right-of-use assets and operating lease obligations, respectively, and removed $2.2 billion and $1.7 billion, respectively, of assets and liabilities related to financial obligations connected with the construction of leased stores. Several other asset and liability line items in the Company's Condensed Consolidated Balance Sheet were also impacted by immaterial amounts. Additionally, the adoption resulted in a cumulative-effect adjustment to retained earnings of approximately $0.3 billion, net of tax, which primarily consisted of the recognition of impairment. The Company’s Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Cash Flows were immaterially impacted. Updated accounting policies as a result of the adoption of this ASU are described below. Note 10 provides additional lease disclosures.
For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future minimum lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments.
Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.
For a majority of all classes of underlying assets, the Company has elected to not separate lease from non-lease components. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance.
Revenue Recognition
Contract Balances
Contract balances as a result of transactions with customers primarily consist of receivables included in receivables, net, and deferred gift card revenue included in accrued liabilities in the Company's Condensed Consolidated Balance Sheets. The following table provides the Company's receivables and deferred gift card revenue from transactions with customers:
(Amounts in millions)
 
October 31, 2019
 
January 31, 2019
Assets:
 
 
 
 
Receivables from transactions with customers, net
 
$
2,618

 
$
2,538

 
 
 
 
 
Liabilities:
 
 
 
 
Deferred gift card revenue
 
$
1,863

 
$
1,932


Derivatives
In fiscal 2020, the Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The adoption of the standard had no current or historical impact on the Company's Condensed Consolidated Financial Statements. The Company continues to use qualitative methods to assess the effectiveness of its designated hedging relationships. Upon adopting ASU 2017-12, the Company modified its existing hedge documentation to use a quantitative method for assessing effectiveness when the hedge is subsequently determined to be ineffective under the qualitative method. There were no other significant changes to the Company's accounting policies for derivatives.
Recent Accounting Pronouncements
Financial Instruments
In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326), which modifies the measurement of expected credit losses of certain financial instruments. The Company will adopt this ASU on February 1, 2020. Management has substantially completed its evaluation of its existing financial instruments and does not expect the adoption of this ASU to materially impact the Company's Condensed Consolidated Financial Statements.
v3.19.3
Net Income (Loss) Per Common Share (Notes)
9 Months Ended
Oct. 31, 2019
Earnings Per Share [Abstract]  
Net income (loss) per common share Net Income Per Common Share
Basic net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period. Diluted net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did not have significant share-based awards outstanding that were anti-dilutive and not included in the calculation of diluted net income per common share attributable to Walmart for the three and nine months ended October 31, 2019 and 2018.
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net income per common share attributable to Walmart:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions, except per share data)
 
2019
 
2018
 
2019
 
2018
Numerator
 
 
 
 
 
 
 
 
Consolidated net income
 
$
3,321

 
$
1,817

 
$
10,907

 
$
3,366

Consolidated net income attributable to noncontrolling interest
 
(33
)
 
(107
)
 
(167
)
 
(383
)
Consolidated net income attributable to Walmart
 
$
3,288

 
$
1,710

 
$
10,740

 
$
2,983

 
 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding, basic
 
2,843

 
2,924

 
2,855

 
2,940

Dilutive impact of share-based awards
 
18

 
17

 
17

 
16

Weighted-average common shares outstanding, diluted
 
2,861

 
2,941

 
2,872

 
2,956

 
 
 
 
 
 
 
 
 
Net income per common share attributable to Walmart
 
 
 
 
 
 
 
 
Basic
 
$
1.16

 
$
0.58

 
$
3.76

 
$
1.01

Diluted
 
1.15

 
0.58

 
3.74

 
1.01


v3.19.3
Accumulated Other Comprehensive Loss (Notes)
9 Months Ended
Oct. 31, 2019
Other Comprehensive Income (Loss), Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
The following table provides the changes in the composition of total accumulated other comprehensive loss for each of the three months ended April 30, 2019, July 31, 2019 and October 31, 2019, respectively:
(Amounts in millions and net of immaterial income taxes)
 
Currency 
Translation and Other
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension 
Liability
 
Total
Balances as of February 1, 2019
 
$
(12,085
)
 
$
1,395

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

 
108

 
(145
)
 
(7
)
 
452

Reclassifications to income, net
 
(23
)
 

 
14

 
8

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

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

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

 

 
14

 
9

 
23

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

 
$
(429
)
 
$
(707
)
 
$
(11,270
)
Other comprehensive income (loss) before reclassifications, net
 
(995
)
 
(113
)
 
(12
)
 
6

 
(1,114
)
Reclassifications to income, net
 

 

 

 
2

 
2

Balances as of October 31, 2019
 
$
(12,772
)
 
$
1,530

 
$
(441
)
 
$
(699
)
 
$
(12,382
)
The following table provides the changes in the composition of total accumulated other comprehensive loss for each of the three months ended April 30, 2018, July 31, 2018 and October 31, 2018, respectively:
(Amounts in millions and net of immaterial income taxes)
 
Currency 
Translation and Other
 
Unrealized Gain on Available-for-Sale Securities
 
Net Investment Hedges
 
Cash Flow Hedges
 
Minimum
Pension 
Liability
 
Total
Balances as of February 1, 2018
 
$
(12,136
)
 
$
1,646

 
$
1,030

 
$
122

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

 
(1,646
)
 
93

 
28

 

 
(1,436
)
Other comprehensive income (loss) before reclassifications, net
 
1,302

 

 
68

 
(86
)
 
32

 
1,316

Reclassifications to income, net
 

 

 

 
9

 
11

 
20

Balances as of April 30, 2018
 
$
(10,745
)
 
$

 
$
1,191

 
$
73

 
$
(800
)
 
$
(10,281
)
Other comprehensive income (loss) before reclassifications, net
 
(2,395
)
 

 
193

 
(171
)
 
(3
)
 
(2,376
)
Reclassifications to income, net
 

 

 

 
16

 
12

 
28

Balances as of July 31, 2018
 
$
(13,140
)
 
$

 
$
1,384

 
$
(82
)
 
$
(791
)
 
$
(12,629
)
Other comprehensive income (loss) before reclassifications, net
 
(888
)
 

 
114

 
(121
)
 
2

 
(893
)
Reclassifications to income, net
 
2,031

 

 

 
12

 
10

 
2,053

Balances as of October 31, 2018
 
$
(11,997
)

$


$
1,498


$
(191
)

$
(779
)

$
(11,469
)
(1) Primarily relates to the adoption of ASU 2016-01, Financial Instruments–Overall and ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
Amounts reclassified from accumulated other comprehensive loss to net income for derivative instruments are recorded in interest, net, in the Company's Condensed Consolidated Statements of Income. Amounts reclassified from accumulated other comprehensive loss to net income for the minimum pension liability, as well as the cumulative translation resulting from the disposition of a business, are recorded in other gains and losses in the Company's Condensed Consolidated Statements of Income.
v3.19.3
Short-term Borrowings and Long-term Debt (Notes)
9 Months Ended
Oct. 31, 2019
Short-term Borrowings and Long-term Debt [Abstract]  
Debt Disclosure [Text Block] Short-term Borrowings and Long-term Debt
The Company has various committed lines of credit in the U.S. that are used to support its commercial paper program. In total, the Company has committed lines of credit in the U.S. of $15 billion at October 31, 2019 and January 31, 2019, all undrawn.
The following table provides the changes in the Company's long-term debt for the nine months ended October 31, 2019:
(Amounts in millions)
 
Long-term debt due within one year
 
Long-term debt
 
Total
Balances as of February 1, 2019
 
$
1,876


$
43,520


$
45,396

Proceeds from issuance of long-term debt
 


5,492


5,492

Repayments of long-term debt
 
(1,907
)



(1,907
)
Reclassifications of long-term debt
 
4,129


(4,129
)


Other
 
(5
)

29


24

Balances as of October 31, 2019
 
$
4,093


$
44,912


$
49,005


Debt Issuances
Information on long-term debt issued during the nine months ended October 31, 2019 is as follows:
(Amounts in millions)
 
 
 
 
 
 
 
 
 
 
Issue Date
 
Principal Amount
 
Maturity Date
 
Fixed vs. Floating
 
Interest Rate
 
Net Proceeds
April 23, 2019
 
$1,500
 
July 8, 2024
 
Fixed
 
2.850%
 
$
1,493

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

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

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

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

Various
 
$42
 
Various
 
Various
 
Various
 
42

Total
 
 
 
 
 
 
 
 
 
$
5,492


These issuances, which are used for general corporate purposes, are senior, unsecured notes which rank equally with all other senior, unsecured debt obligations of the Company, and are not convertible or exchangeable. These issuances do not contain any financial covenants which restrict the Company's ability to pay dividends or repurchase company stock.
Maturities
The following table provides details of debt repayments during the nine months ended October 31, 2019:
(Amounts in millions)
 
 
 
 
 
 
 
 
Maturity Date
 
Original Amount
 
Fixed vs. Floating
 
Interest Rate
 
Repayment
February 1, 2019
 
$500
 
Fixed
 
4.125%
 
$
364

October 20, 2019
 
$300
 
Floating
 
2.281%
 
300

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

Various
 
$43
 
Various
 
Various
 
43

Total repayment of matured debt
 
 
 
 
 
 
 
$
1,907


v3.19.3
Fair Value Measurements (Notes)
9 Months Ended
Oct. 31, 2019
Fair Value Disclosures [Abstract]  
Fair value measurements Fair Value Measurements
Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
Level 1: observable inputs such as quoted prices in active markets;
Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.
Recurring Fair Value Measurements
The Company has equity investments, primarily its investment in JD.com, Inc. ("JD"), measured at fair value on a recurring basis included in other long-term assets in the accompanying Condensed Consolidated Balance Sheet as follows:
The purchased portion of the investment in JD measured using Level 1 inputs, and
The portion of the investment in JD received in exchange for selling certain assets related to Yihaodian, the Company's former eCommerce operations in China, measured using Level 2 inputs. Fair value is determined primarily using quoted prices in active markets for similar assets.
Information for the fair value of the Company's investment in JD is as follows:
(Amounts in millions)
 
Fair Value as of October 31, 2019
 
Fair Value as of January 31, 2019
Investment in JD measured using Level 1 inputs
 
$
2,244

 
$
1,791

Investment in JD measured using Level 2 inputs
 
2,249

 
1,792

Total
 
$
4,493

 
$
3,583

The changes in fair value for the Company's investment in JD are included in other gains and losses in the Company's Condensed Consolidated Statements of Income.
The Company also holds derivative instruments. Derivative fair values are the estimated amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been measured using the income approach and Level 2 inputs, which include the relevant interest yield and foreign currency forward curves. As of October 31, 2019 and January 31, 2019, the notional amounts and fair values of these derivatives were as follows:
 
October 31, 2019
 
January 31, 2019
(Amounts in millions)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges
$
4,000

 
$
66

 
$
4,000

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

 
440

 
2,250

 
334

Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges
4,078

 
(658
)
 
4,173

 
(272
)
Total
$
11,828

 
$
(152
)
 
$
10,423

 
$
(16
)

Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. The Company recorded other immaterial impairment charges to assets measured at fair value on a nonrecurring basis during the three and nine months ended October 31, 2019.
As discussed in Note 8, the Company met the criteria to recognize Walmart Brazil as held for sale in the second quarter of fiscal 2019. Prior to meeting the held for sale criteria, the carrying values of the long-lived assets were concluded to be recoverable based upon cash flows expected to be generated over the assets' useful lives. When the sale of Walmart Brazil became probable, the Company reclassified the related assets and liabilities to held for sale and measured the disposal group at fair value, less costs to sell. The assets of the disposal group totaled $3.3 billion and were comprised of $1.0 billion in current assets, $1.6 billion in property and equipment and property under capital lease and financing obligations, net, and $0.7 billion of other long-term assets. These assets were fully impaired during the second quarter of fiscal 2019 as the carrying value of the disposal group exceeded the fair value, less costs to sell. The Company recorded a pre-tax net loss in the Walmart International segment of approximately $4.8 billion during the nine months ended October 31, 2018, in other gains and losses in the Company's Condensed Consolidated Statements of Income. In the third quarter of fiscal 2019, the sale was completed as discussed in Note 8.
Other Fair Value Disclosures
The Company records cash and cash equivalents, restricted cash, and short-term borrowings at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities.
The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the Company's current incremental borrowing rate for similar types of borrowing arrangements. The carrying value and fair value of the Company's long-term debt as of October 31, 2019 and January 31, 2019, are as follows: 
 
 
October 31, 2019
 
January 31, 2019
(Amounts in millions)
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt, including amounts due within one year
 
$
49,005

 
$
57,016

 
$
45,396

 
$
49,570


v3.19.3
Derivative Financial Instruments (Notes)
9 Months Ended
Oct. 31, 2019
Summary of Derivative Instruments [Abstract]  
Derivative financial instruments Derivative Financial Instruments
In connection with various derivative agreements, including master netting arrangements, the Company held cash collateral from counterparties of $219 million and $220 million at October 31, 2019 and January 31, 2019, respectively. Furthermore, as part of the master netting arrangements with each of these counterparties, the Company is also required to post collateral with a counterparty if the Company's net derivative liability position exceeds $150 million with such counterparties. The Company did not have any cash collateral posted with counterparties at October 31, 2019 or January 31, 2019.
At October 31, 2019 and January 31, 2019, the Company had ¥180 billion of outstanding long-term debt designated as a hedge of its net investment in Japan, as well as outstanding long-term debt of £1.7 billion at October 31, 2019 and January 31, 2019, that was designated as a hedge of its net investment in the United Kingdom. These nonderivative net investment hedges will mature on dates ranging from July 2020 to January 2039.
The Company's derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified as follows in the Company's Condensed Consolidated Balance Sheets:
 
October 31, 2019
 
January 31, 2019
(Amounts in millions)
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
 
Fair Value
Instruments
 
Net Investment
Instruments
 
Cash Flow
Instruments
Derivative instruments
 
 
 
 
 
 
 
 
 
 
 
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
Other long-term assets
$
67

 
$
440

 
$

 
$

 
$
334

 
$
78

 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
Deferred income taxes and other
$
1

 
$

 
$
658

 
$
78

 
$

 
$
350

 
 
 
 
 
 
 
 
 
 
 
 
Nonderivative hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
$

 
$
3,830

 
$

 
$

 
$
3,863

 
$


Amounts related to the Company's derivatives expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months are not significant.
v3.19.3
Contingencies (Notes)
9 Months Ended
Oct. 31, 2019
Contingencies [Abstract]  
Contingencies Contingencies
Legal Proceedings
The Company is involved in a number of legal proceedings. The Company has made accruals with respect to these matters, where appropriate, which are reflected in the Company's Condensed Consolidated Financial Statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. However, where a liability is reasonably possible and may be material, such matters have been disclosed. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company and its shareholders.
Unless stated otherwise, the matters discussed below, if decided adversely or settled by the Company, individually or in the aggregate, may result in a liability material to the Company's financial condition, results of operations or cash flows.
ASDA Equal Value Claims
ASDA Stores Ltd. ("Asda"), a wholly-owned subsidiary of the Company, is a defendant in over 30,000 equal value ("Equal Value") claims that began in 2008 and are proceeding before an Employment Tribunal in Manchester (the "Employment Tribunal") in the United Kingdom ("UK") on behalf of current and former Asda store employees, and further claims may be asserted in the future. The claimants allege that the work performed by female employees in Asda's retail stores is of equal value in terms of, among other things, the demands of their jobs compared to that of male employees working in Asda's warehouse and distribution facilities, and that the disparity in pay between these different job positions is not objectively justified. As a result, claimants are requesting differential back pay based on higher wage rates in the warehouse and distribution facilities and higher wage rates on a prospective basis. In March 2015, Asda asked the Employment Tribunal to stay all proceedings and to "strike out" substantially all of the claims because the claimants had not adhered to the Tribunal's procedural rule for including multiple claimants on the same claim form. Ultimately, the Court of Appeals declined to strike out any claims relying on the Employment Tribunal’s finding that claimants had not deliberately disregarded the Tribunal’s procedural rule. As to the initial phase of the Equal Value claims, in October 2016 following a preliminary hearing, the Employment Tribunal ruled that claimants could compare their positions in Asda's retail stores with those of employees in Asda's warehouse and distribution facilities. Asda appealed the ruling and the appeal is currently pending before the Supreme Court of the United Kingdom.
Notwithstanding the appeal, claimants are proceeding in the next phase of their claims. That phase will determine whether the work performed by the claimants is of equal value to the work performed by employees in Asda's warehouse and distribution facilities.
At present, the Company cannot predict the number of such claims that may be filed, and cannot reasonably estimate any loss or range of loss that may arise from these proceedings. Accordingly, the Company can provide no assurance as to the scope and outcomes of these matters and no assurance to whether its business, financial position, results of operations or cash flows will not be materially adversely affected. The Company believes it has substantial factual and legal defenses to these claims, and intends to defend the claims vigorously.
National Prescription Opiate Litigation and Related Matters
In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous lawsuits filed against a wide array of defendants by various plaintiffs, including counties, cities, healthcare providers, Native American tribes, individuals, and third-party payors, asserting claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation is entitled In re National Prescription Opiate Litigation (MDL No. 2804) and is pending in the U.S. District Court for the Northern District of Ohio. The Company is named as a defendant in some of the cases included in this multidistrict litigation. Similar cases that name the Company have also been filed in state courts by state, local and tribal governments, health care providers and other plaintiffs. Plaintiffs are seeking compensatory and punitive damages, as well as injunctive relief including abatement. The Company cannot predict the number of such claims that may be filed, but believes it has substantial factual and legal defenses to these claims, and intends to defend the claims vigorously. The Company has also been responding to subpoenas, information requests and investigations from governmental entities related to nationwide controlled substance dispensing and distribution practices involving opioids. The Company cannot reasonably estimate any loss or range of loss that may arise from these matters. Accordingly, the Company can provide no assurance as to the scope and outcome of these matters and no assurance as to whether its business, financial position, results of operations or cash flows will not be materially adversely affected.
FCPA Investigation and Related Matters
As previously disclosed, the Company was under investigation by the U.S. Department of Justice (the "DOJ") and the Securities and Exchange Commission (the "SEC") regarding possible violations of the U.S. Foreign Corrupt Practices Act (the "FCPA"). Throughout the investigative process, the Company cooperated with the DOJ and the SEC, and on June 20, 2019, the Company announced the resolution of the investigations with the DOJ and the SEC and paid $283 million in June 2019 consisting of a combination of penalties, disgorgement and interest as further described below (the "Settlement Amount"). The Company previously recorded the Settlement Amount in the Company's fiscal 2018 consolidated financial statements in anticipated settlement of these matters.
The resolution of the investigations with the DOJ and SEC included:
1.
A non-prosecution agreement (the "NPA") between the DOJ and the Company for a three-year term. Pursuant to the NPA, the Company paid a $138 million penalty and agreed to maintain the Company's anti-corruption compliance program for three years, certain reporting obligations for three years, and a limited monitorship with a third party for two years regarding the Company's anti-corruption compliance program, with the possibility of a third year pending the results of the monitorship during the initial two-year period. The DOJ agreed that it will not prosecute the Company for any conduct described in the NPA provided that the Company performs its obligations under the NPA for the three-year term.
2.
A plea agreement (the "Plea Agreement") entered into for a three-year term by the DOJ and WMT Brasilia S.a.r.l., an indirect wholly-owned foreign subsidiary of the Company ("WMT Brasilia") that previously owned a majority stake of the Company's Brazilian business. Through the Plea Agreement, entered in the United States District Court for the Eastern District of Virginia, WMT Brasilia pled guilty to one count of causing a books and records violation of the FCPA. The Company on behalf of WMT Brasilia was assessed a $4 million penalty, including forfeiture, that was deducted from the amount paid by the Company under the NPA.
3.
A Cease-and-Desist Order entered into by the SEC in a civil administrative proceeding (the "SEC Order"), the entry of which the Company consented to with respect to certain violations of the books and records and internal controls provisions of the FCPA. The Company paid $145 million in disgorgement and interest, and agreed to make certain reports to the SEC on its anti-corruption compliance and remediation efforts for two years, and cease and desist any violations of the books and records and internal controls provisions of the FCPA.
On June 20, 2019, the Company also entered into an Administrative Agreement with the U.S. Environmental Protection Agency (the "EPA") for a three-year term, which replaces the interim administrative agreement between the Company and the EPA dated May 28, 2013. The May 28, 2013 agreement arose as part of a settlement by the Company regarding certain hazardous waste materials matters with several governmental authorities. The new EPA agreement, among other things, resolved any debarment or suspension as to participation in federal government programs by the Company due to the NPA, the Plea Agreement, and the SEC Order, provided that the Company fulfills the terms and conditions of the new EPA agreement, which requires reporting by the Company to the EPA periodically during the three-year term, and requires a new, limited two-year monitorship. The monitor referenced above that has been engaged by the Company under the NPA will also monitor compliance with the new EPA agreement. If the DOJ monitorship is extended as referenced above, the EPA monitorship may also be extended for an additional year.
In addition, the Company expects to incur costs in implementing the settlement and may incur costs in responding to any new civil or regulatory actions. The Company does not presently believe that these matters will have a material adverse effect on its business, financial position, results of operations, or cash flows.
v3.19.3
Disposals, Acquisitions and Related Items (Notes)
9 Months Ended
Oct. 31, 2019
Business Combinations [Abstract]  
Disposals, acquisitions and related items Disposals, Acquisitions, and Other Items
The following disposals, acquisitions and other items relate to the Company's Walmart International segment. Other immaterial transactions have also occurred or have been announced.
Walmart Brazil
In August 2018, the Company sold an 80 percent stake of Walmart Brazil to Advent International ("Advent"). Under the terms, Advent agreed to contribute additional capital to the business over a three-year period, and Walmart agreed to indemnify Advent for certain matters.
As a result, the Company recorded a pre-tax net loss of $4.8 billion during the nine months ended October 31, 2018 in other gains and losses in the Company's Condensed Consolidated Statement of Income. Substantially all of this charge was recorded during the second quarter of fiscal 2019 upon meeting the held for sale criteria, and an additional immaterial amount was recorded during the third quarter of fiscal 2019 upon closure of the sale. In calculating the loss, the fair value of the disposal group was reduced by $0.8 billion related to an indemnity, for which a liability was recognized upon closing and is recorded in deferred income taxes and other in the Company's Condensed Consolidated Balance Sheets. The Company indemnified Advent for certain pre-closing tax and legal contingencies and other matters for up to R$2.3 billion, adjusted for interest based on the Brazilian interbank deposit rate.
The Company deconsolidated the financial statements of Walmart Brazil during the third quarter of fiscal 2019 and began accounting for its remaining 20 percent ownership interest using the equity method of accounting. This equity method investment was determined to have no fair value and continues to have no carrying value.
Flipkart Private Limited ("Flipkart")
In August 2018, the Company acquired 81 percent of the outstanding shares, or 77 percent of the diluted shares, of Flipkart, an Indian-based eCommerce marketplace, for cash consideration of approximately $16 billion. The acquisition increased the Company's investment in India, a large, growing economy. In the second quarter of fiscal 2020, the Company finalized the valuation of assets acquired and liabilities assumed for the Flipkart acquisition as follows:
Assets of $24.1 billion, which is comprised primarily of $2.2 billion in cash and cash equivalents, $2.8 billion in other current assets, $5.0 billion in intangible assets and $13.5 billion in goodwill. Of the intangible assets, $4.7 billion represents the fair value of trade names, each with an indefinite life, which were estimated using the income approach based on Level 3 unobservable inputs. The remaining $0.3 billion of intangible assets primarily related to acquired technology with a life of 3 years. The goodwill arising from the acquisition consisted largely of anticipated synergies and economies of scale primarily related to procurement and logistics and is not expected to be deductible for tax purposes;
Liabilities of $3.7 billion, which is comprised primarily of $1.8 billion of current liabilities and $1.7 billion of deferred income taxes; and
Noncontrolling interest of $4.3 billion, for which the fair value was estimated using the income approach based on Level 3 unobservable inputs.
v3.19.3
Segments (Notes)
9 Months Ended
Oct. 31, 2019
Segment Reporting Information, Profit (Loss) [Abstract]  
Segments Segments and Disaggregated Revenue
Segments
The Company is engaged in the operation of retail, wholesale and other units, as well as eCommerce websites, located throughout the U.S., Africa, Argentina, Canada, Central America, Chile, China, India, Japan, Mexico, and the United Kingdom, as well as Brazil until the sale of the majority stake in Walmart Brazil as discussed in Note 8 in August 2018. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services.
The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce and omni-channel initiatives. The Walmart International segment consists of the Company's operations outside of the U.S., as well as eCommerce and omni-channel initiatives. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments.
The Company measures the results of its segments using, among other measures, each segment's net sales and operating income, which includes certain corporate overhead allocations. From time to time, the Company revises the measurement of each segment's operating income, including any corporate overhead allocations, as determined by the information regularly reviewed by its CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation.
Net sales by segment are as follows:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2019

2018
 
2019

2018
Net sales:
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
83,189

 
$
80,583

 
$
248,733

 
$
241,146

Walmart International
 
29,167

 
28,793

 
87,081

 
88,507

Sam's Club
 
14,625

 
14,521

 
43,504

 
42,933

Net sales
 
$
126,981

 
$
123,897

 
$
379,318

 
$
372,586


Operating income by segment, as well as operating loss for corporate and support, interest, net and other gains and losses are as follows:
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
(Amounts in millions)
 
2019
 
2018
 
2019
 
2018
Operating income (loss):
 
 
 
 
 
 
 
 
Walmart U.S.
 
$
4,176

 
$
3,937

 
$
12,977

 
$
12,343

Walmart International
 
634

 
1,179

 
2,265

 
3,713

Sam's Club
 
327

 
379

 
1,258

 
1,106

Corporate and support
 
(419
)
 
(509
)
 
(1,254
)
 
(1,272
)
Operating income
 
4,718

 
4,986

 
15,246

 
15,890

Interest, net
 
589

 
534

 
1,799

 
1,524

Other (gains) and losses
 
(244
)
 
1,876

 
(996
)
 
8,570

Income before income taxes
 
$
4,373

 
$
2,576

 
$
14,443

 
$
5,796


Disaggregated Revenues
In the following tables, segment net sales are disaggregated by either merchandise category or market. In addition, net sales related to eCommerce are provided for each segment, which include omni-channel sales, where a customer initiates an order online and the order is fulfilled through a store or club.
(Amounts in millions)
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
Walmart U.S. net sales by merchandise category
 
2019
 
2018
 
2019
 
2018
Grocery
 
$
47,845

 
$
46,183

 
$
140,936

 
$
136,034

General merchandise
 
25,196

 
24,838

 
77,269

 
76,317

Health and wellness
 
9,262

 
8,869

 
28,018

 
26,834

Other categories
 
886

 
693

 
2,510

 
1,961

Total
 
$
83,189

 
$
80,583

 
$
248,733

 
$
241,146


Of Walmart U.S.'s total net sales, approximately $5.0 billion and $3.6 billion related to eCommerce for the three months ended October 31, 2019 and 2018, respectively. Approximately $14.0 billion and $10.2 billion related to eCommerce for the nine months ended October 31, 2019 and 2018, respectively.
(Amounts in millions)
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
Walmart International net sales by market
 
2019
 
2018
 
2019
 
2018
Mexico and Central America
 
$
7,913

 
$
7,740

 
$
23,765

 
$
22,934

United Kingdom
 
6,961

 
7,407

 
21,355

 
22,572

Canada
 
4,608

 
4,639

 
13,366

 
13,596

China
 
2,718

 
2,637

 
8,209

 
8,322

Other
 
6,967

 
6,370

 
20,386

 
21,083

Total
 
$
29,167

 
$
28,793

 
$
87,081

 
$
88,507


Of International's total net sales, approximately $2.9 billion and $1.5 billion related to eCommerce for the three months ended October 31, 2019 and 2018, respectively. Approximately $7.9 billion and $3.4 billion related to eCommerce for the nine months ended October 31, 2019 and 2018, respectively.
(Amounts in millions)
 
Three Months Ended October 31,

Nine Months Ended October 31,
Sam’s Club net sales by merchandise category
 
2019
 
2018

2019
 
2018
Grocery and consumables
 
$
8,967

 
$
8,570

 
$
26,342

 
$
25,167

Fuel, tobacco and other categories
 
2,831

 
3,168

 
8,646

 
9,348

Home and apparel
 
1,228

 
1,209

 
3,851

 
3,809

Health and wellness
 
858

 
813

 
2,526

 
2,403

Technology, office and entertainment
 
741

 
761

 
2,139

 
2,206

Total
 
$
14,625

 
$
14,521

 
$
43,504

 
$
42,933


Of Sam's Club's total net sales, approximately $0.9 billion and $0.7 billion related to eCommerce for the three months ended October 31, 2019 and 2018, respectively. Approximately $2.5 billion and $1.9 billion related to eCommerce for the nine months ended October 31, 2019 and 2018, respectively.
v3.19.3
Leases (Notes)
9 Months Ended
Oct. 31, 2019
Leases [Abstract]  
Leases of Lessee Disclosure [Text Block] Leases
The Company leases certain retail locations, distribution and fulfillment centers, warehouses, office spaces, land and equipment throughout the U.S. and internationally.
The Company's lease cost consists of the following:
(Amounts in millions)
 
Three Months Ended October 31, 2019
 
Nine Months Ended October 31, 2019
Operating lease cost
 
$
692

 
$
1,989

Finance lease cost:
 
 
 
 
   Amortization of right-of-use assets
 
127

 
354

   Interest on lease obligations
 
78

 
230

Variable lease cost
 
173

 
508


Other lease information is as follows:
(Dollar amounts in millions)
 
Nine Months Ended October 31, 2019
Cash paid for amounts included in measurement of lease obligations:
 
 
Operating cash flows from operating leases
 
$
1,932

Operating cash flows from finance leases
 
202

Financing cash flows from finance leases
 
363

Assets obtained in exchange for operating lease obligations
 
1,576

Assets obtained in exchange for finance lease obligations
 
733

Weighted-average remaining lease term - operating leases
 
15.6 years

Weighted-average remaining lease term - finance leases
 
13.9 years

Weighted-average discount rate - operating leases
 
5.4
%
Weighted-average discount rate - finance leases
 
8.9
%

The aggregate annual lease obligations at October 31, 2019 are as follows:
(Amounts in millions)
 
 
 
 
Fiscal Year
 
Operating Leases
 
Finance Leases
Remainder of 2020
 
$
580

 
$
173

2021
 
2,462

 
755

2022
 
2,242

 
702

2023
 
2,019

 
579

2024
 
1,829

 
498

Thereafter
 
16,430

 
5,688

Total undiscounted lease obligations
 
25,562

 
8,395

Less imputed interest
 
(8,081
)
 
(3,859
)
Net lease obligations
 
$
17,481

 
$
4,536


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

 
$
917

2021
 
1,655

 
856

2022
 
1,420

 
794

2023
 
1,233

 
667

2024
 
1,063

 
593

Thereafter
 
6,891

 
6,069

Total minimum rentals
 
$
14,118

 
$
9,896

Less estimated executory costs
 
 
 
23

       Net minimum lease payments
 
 
 
9,873

Financing obligation noncash gains and other
 
 
 
2,278

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

(1)
Represents minimum contractual obligation for non-cancelable leases with initial or remaining terms greater than 12 months as of January 31, 2019.
v3.19.3
Subsequent Event (Notes)
9 Months Ended
Oct. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events [Text Block] Subsequent Event
ASDA Group Pension Scheme
In the fourth quarter of fiscal 2020, Asda, Walmart and the Trustee of the Asda Group Pension Scheme (the "Plan") entered into an agreement pursuant to which Asda made a cash contribution of $1.1 billion to the Plan which enabled the Plan to purchase a bulk insurance annuity contract for the benefit of Plan participants.  The agreement between Asda, Walmart and the Trustee of the Plan contemplates that subsequent to the purchase of the bulk annuity insurance contract by the Plan, each of the Plan participants will be issued individual annuity contracts.  The issuer of the individual annuity insurance contracts will be solely responsible for paying each participant’s benefits in full and will release the Plan and Asda from any future obligations.  The Company expects the issuance of individual annuity contracts to the Plan participants to take place in late fiscal 2021 or early fiscal 2022, which will trigger a pension settlement that will result in all Plan balances, including accumulated pension components within other comprehensive income, being charged to expense.
v3.19.3
Accounting Policies Summary of Significant Accounting Policies (Policies)
9 Months Ended
Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation
The Condensed Consolidated Financial Statements of Walmart Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019 ("fiscal 2019"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of October related to the operations consolidated using a lag that materially affected the Condensed Consolidated Financial Statements.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Leases
Leases
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lease assets and liabilities to be recorded on the balance sheet.  The Company adopted this ASU and related amendments as of February 1, 2019 under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification as well as relief from reviewing expired or existing contracts to determine if they contain leases.  For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption.
The adoption of this ASU and related amendments resulted in a $14.8 billion increase to total assets and a $15.1 billion increase to total liabilities in the first quarter of the fiscal year ending January 31, 2020 ("fiscal 2020"). In the first quarter of fiscal 2020, the Company recognized $16.8 billion and $17.5 billion of operating lease right-of-use assets and operating lease obligations, respectively, and removed $2.2 billion and $1.7 billion, respectively, of assets and liabilities related to financial obligations connected with the construction of leased stores. Several other asset and liability line items in the Company's Condensed Consolidated Balance Sheet were also impacted by immaterial amounts. Additionally, the adoption resulted in a cumulative-effect adjustment to retained earnings of approximately $0.3 billion, net of tax, which primarily consisted of the recognition of impairment. The Company’s Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Cash Flows were immaterially impacted. Updated accounting policies as a result of the adoption of this ASU are described below. Note 10 provides additional lease disclosures.
For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future minimum lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments.
Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.
For a majority of all classes of underlying assets, the Company has elected to not separate lease from non-lease components. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance.
Revenue Recognition
Revenue Recognition
Contract Balances
Contract balances as a result of transactions with customers primarily consist of receivables included in receivables, net, and deferred gift card revenue included in accrued liabilities in the Company's Condensed Consolidated Balance Sheets. The following table provides the Company's receivables and deferred gift card revenue from transactions with customers:
(Amounts in millions)
 
October 31, 2019
 
January 31, 2019
Assets:
 
 
 
 
Receivables from transactions with customers, net
 
$
2,618

 
$
2,538