WALMART INC., 10-K filed on 3/19/2021
Annual Report
v3.20.4
Cover Page - USD ($)
12 Months Ended
Jan. 31, 2021
Mar. 17, 2021
Jul. 31, 2020
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 31, 2021    
Current Fiscal Year End Date --01-31    
Document Transition Report false    
Entity File Number 001-06991    
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, Postal Zip Code 72716    
Entity Address, City or Town Bentonville,    
Entity Address, State or Province AR    
City Area Code 479    
Local Phone Number 273-4000    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 182,886,052,366
Entity Common Stock, Shares Outstanding   2,817,071,695  
Documents Incorporated by Reference
Document  Parts Into Which Incorporated
Portions of the registrant's Proxy Statement for the Annual Meeting of Shareholders to be held June 2, 2021 (the "Proxy Statement")  Part III
   
Entity Central Index Key 0000104169    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
Common Stock, par value $0.10 per share [Member]      
Title of 12(b) Security Common Stock, par value $0.10 per share    
Trading Symbol WMT    
Security Exchange Name NYSE    
1.900% Notes Due 2022 [Member]      
Title of 12(b) Security 1.900% Notes Due 2022    
Trading Symbol WMT22    
Security Exchange Name NYSE    
2.550% Notes Due 2026 [Member]      
Title of 12(b) Security 2.550% Notes Due 2026    
Trading Symbol WMT26    
Security Exchange Name NYSE    
v3.20.4
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Revenues:      
Net sales $ 555,233 $ 519,926 $ 510,329
Membership and other income 3,918 4,038 4,076
Total revenues 559,151 523,964 514,405
Costs and expenses:      
Cost of sales 420,315 394,605 385,301
Operating, selling, general and administrative expenses 116,288 108,791 107,147
Operating income 22,548 20,568 21,957
Interest:      
Debt 1,976 2,262 1,975
Finance, capital lease and financing obligations 339 337 371
Interest income (121) (189) (217)
Interest, net 2,194 2,410 2,129
Other (gains) and losses (210) (1,958) 8,368
Income before income taxes 20,564 20,116 11,460
Provision for income taxes 6,858 4,915 4,281
Consolidated net income 13,706 15,201 7,179
Consolidated net income attributable to noncontrolling interest (196) (320) (509)
Consolidated net income attributable to Walmart $ 13,510 $ 14,881 $ 6,670
Net income per common share:      
Basic net income per common share attributable to Walmart (in USD per share) $ 4.77 $ 5.22 $ 2.28
Diluted net income per common share attributable to Walmart (in USD per share) $ 4.75 $ 5.19 $ 2.26
Weighted-average common shares outstanding:      
Basic (in shares) 2,831 2,850 2,929
Diluted (in shares) 2,847 2,868 2,945
Dividends declared per common share (in USD per share) $ 2.16 $ 2.12 $ 2.08
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Statement of Comprehensive Income [Abstract]      
Consolidated net income $ 13,706 $ 15,201 $ 7,179
Consolidated net income attributable to noncontrolling interest (196) (320) (509)
Consolidated net income attributable to Walmart 13,510 14,881 6,670
Other comprehensive income (loss), net of income taxes      
Currency translation and other 842 286 (226)
Net investment hedges (221) 122 272
Cash flow hedges 235 (399) (290)
Minimum pension liability (30) (1,244) 131
Other comprehensive income (loss), net of income taxes 826 (1,235) (113)
Other comprehensive (income) loss attributable to noncontrolling interest 213 (28) 188
Other comprehensive income (loss) attributable to Walmart 1,039 (1,263) 75
Comprehensive income, net of income taxes 14,532 13,966 7,066
Comprehensive (income) loss attributable to noncontrolling interest 17 (348) (321)
Comprehensive income attributable to Walmart $ 14,549 $ 13,618 $ 6,745
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Jan. 31, 2021
Jan. 31, 2020
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 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
Current liabilities:    
Short-term borrowings 224 575
Accounts payable 49,141 46,973
Accrued liabilities 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 (11,766) (12,805)
Total Walmart shareholders' equity 80,925 74,669
Noncontrolling interest 6,606 6,883
Total equity 87,531 81,552
Total liabilities and equity $ 252,496 $ 236,495
v3.20.4
Consolidated Statements Of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Capital in excess of par value [Member]
Retained earnings [Member]
Retained earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated other comprehensive income (loss) [Member]
Accumulated other comprehensive income (loss) [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Total Walmart shareholders' equity [Member]
Total Walmart shareholders' equity [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Noncontrolling interest [Member]
Noncontrolling interest [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Beginning balances (in shares) at Jan. 31, 2018     2,952                  
Beginning balances at Jan. 31, 2018 $ 80,822 $ 924 $ 295 $ 2,648 $ 85,107 $ 2,361 $ (10,181) $ (1,436) $ 77,869 $ 925 $ 2,953 $ (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Consolidated net income 7,179       6,670       6,670   509  
Other comprehensive income (loss), net of income taxes (113)           75   75   (188)  
Cash dividends declared (6,102)       (6,102)       (6,102)      
Purchase of Company stock (in shares)     (80)                  
Purchase of Company stock (7,487)   $ (8) (245) (7,234)       (7,487)      
Cash dividend declared to noncontrolling interest (488)                   (488)  
Noncontrolling interest of acquired entity 4,345                   4,345  
Other (in shares)     6                  
Other 554   $ 1 562 (17)       546   8  
Ending balances (in shares) at Jan. 31, 2019     2,878                  
Ending balances at Jan. 31, 2019 79,634 $ (300) $ 288 2,965 80,785 $ (266) (11,542)   72,496 $ (266) 7,138 $ (34)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Consolidated net income 15,201       14,881       14,881   320  
Other comprehensive income (loss), net of income taxes (1,235)           (1,263)   (1,263)   28  
Cash dividends declared (6,048)       (6,048)       (6,048)      
Purchase of Company stock (in shares)     (53)                  
Purchase of Company stock (5,639)   $ (5) (199) (5,435)       (5,639)      
Cash dividend declared to noncontrolling interest (475)                   (475)  
Other (in shares)     7                  
Other 414   $ 1 481 26       508   (94)  
Ending balances (in shares) at Jan. 31, 2020     2,832                  
Ending balances at Jan. 31, 2020 81,552   $ 284 3,247 83,943   (12,805)   74,669   6,883  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Consolidated net income 13,706       13,510       13,510   196  
Other comprehensive income (loss), net of income taxes 826           1,039   1,039   (213)  
Cash dividends declared (6,116)       (6,116)       (6,116)      
Purchase of Company stock (in shares)     (20)                  
Purchase of Company stock (2,658)   $ (2) (97) (2,559)       (2,658)      
Cash dividend declared to noncontrolling interest (365)                   (365)  
Other (in shares)     9                  
Other 586     496 (15)       481   105  
Ending balances (in shares) at Jan. 31, 2021     2,821                  
Ending balances at Jan. 31, 2021 $ 87,531   $ 282 $ 3,646 $ 88,763   $ (11,766)   $ 80,925   $ 6,606  
v3.20.4
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared (in USD per share) $ 2.16 $ 2.12 $ 2.08
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Cash flows from operating activities:      
Consolidated net income $ 13,706 $ 15,201 $ 7,179
Adjustments to reconcile consolidated net income to net cash provided by operating activities:      
Depreciation and amortization 11,152 10,987 10,678
Net unrealized and realized (gains) and losses (8,589) (1,886) 3,516
Losses on disposal of business operations 8,401 15 4,850
Asda pension contribution 0 (1,036) 0
Deferred income taxes 1,911 320 (499)
Other operating activities 1,521 1,981 1,734
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:      
Receivables, net (1,086) 154 (368)
Inventories (2,395) (300) (1,311)
Accounts payable 6,966 (274) 1,831
Accrued liabilities 4,623 186 183
Accrued income taxes (136) (93) (40)
Net cash provided by operating activities 36,074 25,255 27,753
Cash flows from investing activities:      
Payments for property and equipment (10,264) (10,705) (10,344)
Proceeds from the disposal of property and equipment 215 321 519
Proceeds from the disposal of certain operations 56 833 876
Payments for business acquisitions, net of cash acquired (180) (56) (14,656)
Other investing activities 102 479 (431)
Net cash used in investing activities (10,071) (9,128) (24,036)
Cash flows from financing activities:      
Net change in short-term borrowings (324) (4,656) (53)
Proceeds from issuance of long-term debt 0 5,492 15,872
Repayments of long-term debt (5,382) (1,907) (3,784)
Dividends paid (6,116) (6,048) (6,102)
Purchase of Company stock (2,625) (5,717) (7,410)
Dividends paid to noncontrolling interest (434) (555) (431)
Other financing activities (1,236) (908) (629)
Net cash used in financing activities (16,117) (14,299) (2,537)
Effect of exchange rates on cash, cash equivalents and restricted cash 235 (69) (438)
Net increase in cash, cash equivalents and restricted cash 10,121 1,759 742
Cash and cash equivalents reclassified as assets held for sale (1,848) 0 0
Cash, cash equivalents and restricted cash at beginning of year 9,515 7,756 7,014
Cash, cash equivalents and restricted cash at end of year 17,788 9,515 7,756
Supplemental disclosure of cash flow information:      
Income taxes paid 5,271 3,616 3,982
Interest paid $ 2,216 $ 2,464 $ 2,348
v3.20.4
Summary of Significant Accounting Policies
12 Months Ended
Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
General
Walmart Inc. ("Walmart" or the "Company") helps people around the world save money and live better – anytime and anywhere – by providing the opportunity to shop in retail stores and through eCommerce. Through innovation, the Company is striving to continuously improve a customer-centric experience that seamlessly integrates eCommerce and retail stores in an omni-channel offering that saves time for its customers.
The Company's operations comprise three reportable segments: Walmart U.S., Walmart International and Sam's Club.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Walmart and its subsidiaries as of and for the fiscal years ended January 31, 2021 ("fiscal 2021"), January 31, 2020 ("fiscal 2020") and January 31, 2019 ("fiscal 2019"). Intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities' operations. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method. These variable interest entities and equity method investments are immaterial to the Company's Consolidated Financial Statements.
The Company's Consolidated Financial Statements are based on a fiscal year ending on January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of January 2021 related to the operations consolidated using a lag that materially affected the Consolidated Financial Statements.
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles. Those principles require management to make estimates and assumptions, including potential impacts arising from the COVID-19 pandemic and related government actions, that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
Cash and Cash Equivalents
The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. All credit card, debit card and electronic transfer transactions that process in less than seven days are classified as cash and cash equivalents. The amounts due from banks for these transactions classified as cash and cash equivalents totaled $4.1 billion and $1.7 billion as of January 31, 2021 and 2020, respectively.
The Company's cash balances are held in various locations around the world. Of the Company's $17.7 billion and $9.5 billion in cash and cash equivalents as of January 31, 2021 and January 31, 2020, approximately 40% and 80% were held outside of the U.S., respectively. Cash and cash equivalents held outside of the U.S. are generally utilized to support liquidity needs in the Company's non-U.S. operations.
The Company uses intercompany financing arrangements in an effort to ensure cash can be made available in the country in which it is needed with the minimum cost possible.
As of January 31, 2021 and 2020, cash and cash equivalents of approximately $2.8 billion and $2.3 billion, respectively, may not be freely transferable to the U.S. due to local laws or other restrictions. Of the $2.8 billion as of January 31, 2021, approximately $1.0 billion can only be accessed through dividends or intercompany financing arrangements subject to approval of Flipkart Private Limited ("Flipkart") minority shareholders; however, this cash is expected to be utilized to fund the operations of Flipkart.
Receivables
Receivables are stated at their carrying values, net of a reserve for doubtful accounts, and are primarily due from the following: customers, which also includes insurance companies resulting from pharmacy sales, banks for customer credit, debit cards and electronic transfer transactions that take in excess of seven days to process; suppliers for marketing or incentive programs; governments for income taxes; and real estate transactions. As of January 31, 2021 and January 31, 2020, receivables from transactions with customers, net were $2.7 billion and $2.9 billion, respectively.
Inventories
The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting, using the last-in, first-out ("LIFO") method for the Walmart U.S. segment's inventories. The inventory for the Walmart International segment is valued primarily by the retail inventory method of accounting, using the first-in, first-out ("FIFO") method. The retail inventory method of accounting results in inventory being valued at the lower of cost or market, since permanent markdowns are immediately recorded as a reduction of the retail value of inventory. The inventory at the Sam's Club segment is valued using the weighted-average cost LIFO method. As of January 31, 2021 and January 31, 2020, the Company's inventories valued at LIFO approximated those inventories as if they were valued at FIFO.
Held for Sale
Components and businesses that meet accounting requirements to be classified as held for sale are presented as single asset and liability amounts in the Company's financial statements with a valuation allowance, if necessary, to recognize the net carrying amount at the lower of cost or fair value, less costs to sell.  The Company reviews its businesses and assets held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values.  As of January 31, 2021, $19.2 billion assets held for sale and $12.7 billion liabilities held for sale were classified in prepaid expenses and other and accrued liabilities in the Consolidated Balance Sheets, respectively, reflecting the Company's operations in the U.K. and Japan classified as held for sale. Refer to Note 12 for additional details. As of January 31, 2020, assets and liabilities held for sale were immaterial.
Property and Equipment
Property and equipment are initially recorded at cost. Gains or losses on disposition are recognized as earned or incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are expensed as incurred. The following table summarizes the Company's property and equipment balances, and includes the estimated useful lives that are generally used to depreciate the assets on a straight-line basis:
As of January 31,
(Amounts in millions)Estimated Useful Lives20212020
LandN/A$19,308 $24,619 
Buildings and improvements
3 - 40 years
97,582 105,674 
Fixtures and equipment
1 - 30 years
56,639 58,607 
Transportation equipment
3 - 15 years
2,301 2,377 
Construction in progressN/A4,741 3,751 
Property and equipment180,571 195,028 
Accumulated depreciation(88,370)(89,820)
Property and equipment, net$92,201 $105,208 
Leasehold improvements are depreciated or amortized over the shorter of the estimated useful life of the asset or the remaining expected lease term. Total depreciation and amortization expense for property and equipment, property under finance leases and financing obligations, property under capital leases and intangible assets for fiscal 2021, 2020 and 2019 was $11.2 billion, $11.0 billion and $10.7 billion, respectively.
Leases
For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments.
Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.
For a majority of all classes of underlying assets, the Company has elected to not separate lease from non-lease components. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance.
Impairment of Long-Lived Assets
Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows, which is at the individual store or club level. Undiscounted cash flows expected to be generated by the related assets are estimated over the assets' useful lives based on updated projections. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique.
Goodwill and Other Acquired Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is allocated to the appropriate reporting unit when acquired. Other acquired intangible assets are stated at the fair value acquired as determined by a valuation technique commensurate with the intended use of the related asset. Goodwill and indefinite-lived intangible assets are not amortized; rather, they are evaluated for impairment annually and whenever events or changes in circumstances indicate that the value of the asset may be impaired. Definite-lived intangible assets are considered long-lived assets and are amortized on a straight-line basis over the periods that expected economic benefits will be provided.
Goodwill is assigned to the reporting unit which consolidates the acquisition. Components within the same reportable segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of January 31, 2021, the Company's reporting units consisted of Walmart U.S., Walmart International and Sam's Club. Goodwill is evaluated for impairment using either a qualitative or quantitative approach for each of the Company's reporting units. Generally, a qualitative assessment is first performed to determine whether a quantitative goodwill impairment test is necessary. If management determines, after performing an assessment based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, or that a fair value of the reporting unit substantially in excess of the carrying amount cannot be assured, then a quantitative goodwill impairment test would be required. The quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. Fair value is measured based on the discounted cash flow method and relative market-based approaches. After evaluation, management determined the fair value of each reporting unit is significantly greater than the carrying amount and, accordingly, the Company has not recorded any impairment charges related to goodwill.
The following table reflects goodwill activity, by reportable segment, for fiscal 2021 and 2020:
(Amounts in millions)Walmart U.S.Walmart
International
Sam's ClubTotal
Balances as of February 1, 2019$2,552 $28,316 $313 $31,181 
Changes in currency translation and other— (149)— (149)
Acquisitions41 — — 41 
Balances as of January 31, 20202,593 28,167 313 31,073 
Changes in currency translation and other— 10 — 10 
Acquisitions103 — 111 
Amounts reclassified related to operations held for sale(1)
— (2,211)— (2,211)
Balances as of January 31, 2021$2,696 $25,966 $321 $28,983 
(1) Represents goodwill associated with operations in the U.K. and Japan which are classified as held for sale as of January 31, 2021. Refer to Note 12.
Intangible assets are included in other long-term assets in the Company's Consolidated Balance Sheets. As of January 31, 2021 and 2020, the Company had $4.9 billion and $5.2 billion, respectively, in indefinite-lived intangible assets which primarily consists of acquired trade names. Refer to Note 12 for additional information related to acquired intangible assets for the Flipkart acquisition in fiscal 2019. There were no significant impairment charges related to intangible assets for fiscal 2021. During fiscal 2020, the Company incurred approximately $0.7 billion in impairment charges related to its intangible assets. Refer to Note 8 for additional information.
Fair Value Measurement
The Company records and discloses certain financial and non-financial assets and liabilities at fair value. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. The fair value of a liability is the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor. Refer to Note 8 for more information.
Additionally, the Company may provide routine indemnifications in connection with certain transactions, primarily divestitures, for which an indemnification liability equal to the estimated fair value of the obligation is recorded upon inception.  Where necessary, these obligations are recorded at their fair value within deferred income taxes and other in the Consolidated Balance Sheets.
Investments
Investments in equity securities with readily determinable fair values are recorded at fair value in other long-term assets in the Consolidated Balance Sheets with changes in fair value recognized in other gains and losses in the Consolidated Statements of Income. Refer to Note 8 for details. Equity investments without readily determinable fair values are carried at cost in other long-term assets in the Consolidated Balance Sheets, and adjusted for any observable price changes or impairments recorded in other gains and losses in the Consolidated Statements of Income.
Investments in debt securities classified as held-to-maturity are reported at amortized cost in other long-term assets in the Consolidated Balance Sheets with interest or dividend income recorded in interest income in the Consolidated Statements of Income.
Self Insurance Reserves
The Company self-insures a number of risks, including, but not limited to, workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits. Standard actuarial procedures and data analysis are used to estimate the liabilities associated with these risks as of the balance sheet date on an undiscounted basis. The recorded liabilities reflect the ultimate cost for claims incurred but not paid and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. On a regular basis, the liabilities are evaluated for appropriateness with claims reserve valuations. To limit exposure to some risks, the Company maintains insurance coverage with varying limits and retentions, including stop-loss insurance coverage for workers' compensation, general liability and auto liability.
Derivatives
The Company uses derivatives for hedging purposes to manage its exposure to changes in interest and currency exchange rates, as well as to maintain an appropriate mix of fixed- and variable-rate debt. Use of derivatives in hedging programs subjects the Company to certain risks, such as market and credit risks. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Credit risk is monitored through established approval procedures, including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral from the counterparty. The Company enters into derivatives with counterparties rated only "A-" or better by nationally recognized credit rating agencies. The Company is subject to master netting arrangements which provides set-off and close out netting of exposures with counterparties, but the Company does not offset derivative assets and liabilities in its Consolidated Balance Sheets. The Company’s collateral arrangements require the counterparty in a net liability position in excess of pre-determined thresholds, after considering the effects of netting arrangements, to pledge cash collateral. Cash collateral received under these arrangements was not significant as of January 31, 2021 and 2020. The Company was not required to provide any cash collateral to counterparties as of January 31, 2021 and 2020.
In order to qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. If a derivative is recorded using hedge accounting, depending on the nature of the hedge, derivative gains and losses are recorded through the same financial statement line item in earnings or are recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, are recorded at fair value with unrealized gains or losses reported in earnings. Derivatives with an unrealized gain are recorded in the Company's Consolidated Balance Sheets as either current or non-current assets, based on maturity date, and derivatives with an unrealized loss are recorded as either current or non-current liabilities, based on maturity date. Refer to Note 8 for the presentation of the Company's derivative assets and liabilities.
Fair Value Hedges
The Company is a party to receive fixed-rate, pay variable-rate interest rate swaps that the Company uses to hedge the fair value of fixed-rate debt. All interest rate swaps designated as fair value hedges of the related long-term debt meet the shortcut method requirements under U.S. GAAP. Accordingly, changes in the fair values of these interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. These derivatives will mature on dates ranging from April 2023 to April 2024.
Cash Flow Hedges
The Company is a party to receive fixed-rate, pay fixed-rate cross currency interest rate swaps used to hedge the currency exposure associated with the forecasted payments of principal and interest of certain non-U.S. denominated debt. The Company records changes in the fair value of these swaps in accumulated other comprehensive loss which is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. These derivatives will mature on dates ranging from April 2022 to March 2034.
Net Investment Hedges
The Company is a party to receive fixed-rate, pay fixed-rate cross currency interest rate swaps used to hedge the currency exposure associated with net investments of certain of its foreign operations. The Company records changes in fair value attributable to the hedged risk in accumulated other comprehensive loss. These derivatives, which relate to the Company's operations in the United Kingdom held for sale as of January 31, 2021, have maturity dates ranging from October 2023 to February 2030. The Company also designated certain foreign currency denominated long-term debt as a hedge of currency exposure associated with the net investment of the Company's operations in the United Kingdom and Japan, both of which were classified as held for sale as of January 31, 2021. The Company records foreign currency gain or loss associated with designated long-term debt in accumulated other comprehensive loss. As of January 31, 2021 and 2020, the Company had $3.3 billion and $3.9 billion, respectively, of outstanding long-term debt designated as net investment hedges.
These derivative and non-derivative gains or losses continue to defer in accumulated other comprehensive loss until the sale or substantial liquidation of these foreign operations. Refer to Note 12 for additional detail regarding the divestiture of the Company's operations in the United Kingdom and Japan.
Income Taxes
Income taxes are accounted for under the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases ("temporary differences"). Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date.
Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that a portion is not more likely than not to be realized. Many factors are considered when assessing whether it is more likely than not that the deferred tax assets will be realized, including recent cumulative earnings, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates.
The Tax Cuts and Jobs Act of 2017 (the "Tax Act") contains a provision which subjects a U.S. parent of a foreign subsidiary to current U.S. tax on its global intangible low–taxed income (“GILTI”). The GILTI income is eligible for a deduction, which lowers the effective tax rate to 10.5% for calendar years 2018 through 2025 and 13.125% after 2025. The Company will report the tax impact of GILTI as a period cost when incurred. Accordingly, the Company is not providing deferred taxes for basis differences expected to reverse as GILTI.
In determining the provision for income taxes, an annual effective income tax rate is used based on annual income, permanent differences between book and tax income, and statutory income tax rates. Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur.
The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company records interest and penalties related to unrecognized tax benefits in interest expense and operating, selling, general and administrative expenses, respectively, in the Company's Consolidated Statements of Income. Refer to Note 9 for additional income tax disclosures.
Revenue Recognition    
Net Sales
The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise or services to the customer. eCommerce sales include shipping revenue and are recorded upon delivery to the customer. Estimated sales returns are calculated based on expected returns.
Membership Fee Revenue
The Company recognizes membership fee revenue both in the U.S. and internationally over the term of the membership, which is typically 12 months. Membership fee revenue was $1.7 billion for fiscal 2021, $1.5 billion for fiscal 2020 and $1.4 billion for fiscal 2019, respectively. Membership fee revenue is included in membership and other income in the Company's Consolidated Statements of Income. Deferred membership fee revenue is included in accrued liabilities in the Company's Consolidated Balance Sheets.
Gift Cards
Customer purchases of gift cards are not recognized as sales until the card is redeemed and the customer purchases merchandise using the gift card. Gift cards in the U.S. and some countries do not carry an expiration date; therefore, customers and members can redeem their gift cards for merchandise and services indefinitely. Gift cards in some countries where the Company does business have expiration dates. While gift cards are generally redeemed within 12 months, a certain number of gift cards, both with and without expiration dates, will not be fully redeemed. Management estimates unredeemed balances and recognizes revenue for these amounts in membership and other income in the Company's Consolidated Statements of Income over the expected redemption period.
Financial and Other Services
The Company recognizes revenue from service transactions at the time the service is performed. Generally, revenue from services is classified as a component of net sales in the Company's Consolidated Statements of Income.
Cost of Sales
Cost of sales includes actual product cost, the cost of transportation to the Company's distribution facilities, stores and clubs from suppliers, the cost of transportation from the Company's distribution facilities to the stores, clubs and customers and the cost of warehousing for the Sam's Club segment and import distribution centers. Cost of sales is reduced by supplier payments that are not a reimbursement of specific, incremental and identifiable costs.
Payments from Suppliers
The Company receives consideration from suppliers for various programs, primarily volume incentives, warehouse allowances and reimbursements for specific programs such as markdowns, margin protection, advertising and supplier-specific fixtures. Payments from suppliers are accounted for as a reduction of cost of sales, except in certain limited situations when the payment is a reimbursement of specific, incremental and identifiable costs, and are recognized in the Company's Consolidated Statements of Income when the related inventory is sold.
Operating, Selling, General and Administrative Expenses
Operating, selling, general and administrative expenses include all operating costs of the Company, except cost of sales, as described above. As a result, the majority of the cost of warehousing and occupancy for the Walmart U.S. and Walmart International segments' distribution facilities is included in operating, selling, general and administrative expenses. Because the Company only includes a portion of the cost of its Walmart U.S. and Walmart International segments' distribution facilities in cost of sales, its gross profit and gross profit as a percentage of net sales may not be comparable to those of other retailers that may include all costs related to their distribution facilities in cost of sales and in the calculation of gross profit.
Advertising Costs
Advertising costs are expensed as incurred, consist primarily of print, television and digital advertisements and are recorded in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. In certain limited situations, reimbursements from suppliers that are for specific, incremental and identifiable advertising costs are recognized as a reduction of advertising costs in operating, selling, general and administrative expenses. Advertising costs were $3.2 billion, $3.7 billion and $3.5 billion for fiscal 2021, 2020 and 2019, respectively.
Currency Translation
The assets and liabilities of all international subsidiaries are translated from the respective local currency to the U.S. dollar using exchange rates at the balance sheet date. Related translation adjustments are recorded as a component of accumulated other comprehensive loss. The Company's Consolidated Statements of Income of all international subsidiaries are translated from the respective local currencies to the U.S. dollar using average exchange rates for the period covered by the income statements.
Recent Accounting Pronouncements
Financial Instruments
In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326), which modifies the measurement of expected credit losses of certain financial instruments. The Company adopted this ASU on February 1, 2020 with no material impact to the Company's Consolidated Financial Statements.
v3.20.4
Net Income Per Common Share
12 Months Ended
Jan. 31, 2021
Earnings Per Share [Abstract]  
Net Income Per Common Share Net Income Per Common Share
Basic net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period. Diluted net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did not have significant share-based awards outstanding that were antidilutive and not included in the calculation of diluted net income per common share attributable to Walmart for fiscal 2021, 2020 and 2019.
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net income per common share attributable to Walmart:
Fiscal Years Ended January 31,
(Amounts in millions, except per share data)202120202019
Numerator
Consolidated net income$13,706 $15,201 $7,179 
Consolidated net income attributable to noncontrolling interest(196)(320)(509)
Consolidated net income attributable to Walmart$13,510 $14,881 $6,670 
Denominator
Weighted-average common shares outstanding, basic2,831 2,850 2,929 
Dilutive impact of stock options and other share-based awards16 18 16 
Weighted-average common shares outstanding, diluted2,847 2,868 2,945 
Net income per common share attributable to Walmart
Basic$4.77 $5.22 $2.28 
Diluted4.75 5.19 2.26 
v3.20.4
Shareholders' Equity
12 Months Ended
Jan. 31, 2021
Equity [Abstract]  
Shareholders' Equity Shareholders' Equity
The total authorized shares of $0.10 par value common stock is 11.0 billion, of which 2.8 billion were issued and outstanding as of January 31, 2021 and 2020.
Share-Based Compensation
The Company has awarded share-based compensation to associates and nonemployee directors of the Company. The compensation expense recognized for all stock incentive plans, including expense associated with plans of the Company's consolidated subsidiaries granted in the subsidiaries' respective stock, was $1.2 billion, $0.9 billion and $0.8 billion for fiscal 2021, 2020 and 2019, respectively. Share-based compensation expense is generally included in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. The total income tax benefit recognized for share-based compensation was $0.3 billion, $0.2 billion and $0.2 billion for fiscal 2021, 2020 and 2019, respectively. The following table summarizes the Company's share-based compensation expense by award type for all plans:
 Fiscal Years Ended January 31,
(Amounts in millions)202120202019
Restricted stock units$742 $553 $456 
Restricted stock and performance-based restricted stock units277 270 293 
Other150 31 24 
Share-based compensation expense$1,169 $854 $773 
The Walmart Inc. Stock Incentive Plan of 2015 (the "Plan"), as subsequently amended and restated, was established to grant stock options, restricted (non-vested) stock, performance share units and other equity compensation awards for which 260 million shares of Walmart common stock issued or to be issued under the Plan have been registered under the Securities Act of 1933. The Company believes that such awards serve to align the interests of its associates with those of its shareholders.
The Plan's award types are summarized as follows:
Restricted Stock Units. Restricted stock units provide rights to Company stock after a specified service period. Beginning in fiscal 2020, restricted stock units generally vest at a rate of 25% each year over a four year period from the date of the grant. Prior to fiscal 2020, 50% of restricted stock units generally vested three years from the grant date and the remaining 50% were vested five years from the grant date. The fair value of each restricted stock unit is determined on the date of grant using the stock price discounted for the expected dividend yield through the vesting period and is recognized ratably over the vesting period. The expected dividend yield is based on the anticipated dividends over the vesting period. The weighted-average discount for the dividend yield used to determine the fair value of restricted stock units granted in fiscal 2021, 2020 and 2019 was 4.4%, 4.9% and 7.2%, respectively.
Restricted Stock and Performance-based Restricted Stock Units. Restricted stock awards are for shares that vest based on the passage of time and include restrictions related to employment. Performance-based restricted stock units vest based on the passage of time and achievement of performance criteria and may range from 0% to 150% of the original award amount. Vesting periods for these awards are generally between one and three years. Restricted stock and performance-based restricted stock units may be settled or deferred in stock and are accounted for as equity in the Company's Consolidated Balance Sheets. The fair value of restricted stock awards is determined on the date of grant and is expensed ratably over the vesting period. The fair value of performance-based restricted stock units is determined on the date of grant using the Company's stock price discounted for the expected dividend yield through the vesting period and is recognized over the vesting period. The weighted-average discount for the dividend yield used to determine the fair value of performance-based restricted stock units in fiscal 2021, 2020 and 2019 was 4.5%, 5.1% and 6.2%, respectively.
In addition to the Plan, Flipkart has certain share-based compensation plans for associates under which options to acquire Flipkart common shares may be issued. Share-based compensation expense associated with these plans is included in the Other line in the table above.
The following table shows the activity for restricted stock units and restricted stock and performance-based restricted stock units during fiscal 2021:
Restricted Stock UnitsRestricted Stock and
Performance-based Restricted Stock Units
(Shares in thousands)SharesWeighted-Average Grant-Date Fair Value Per ShareSharesWeighted-Average Grant-Date Fair Value Per Share
Outstanding as of February 1, 202023,261 $79.51 6,045 $93.04 
Granted7,472 114.51 2,867 120.47 
Adjustment for performance achievement(1)
— — 576 86.46 
Vested/exercised(7,798)76.11 (3,075)88.88 
Forfeited (3,035)92.20 (1,000)96.36 
Outstanding as of January 31, 202119,900 $92.13 5,413 $108.72 
(1)    Represents the adjustment to previously granted performance share units for performance achievement.
The following table includes additional information related to restricted stock units and restricted stock and performance-based restricted stock units: 
 Fiscal Years Ended January 31,
(Amounts in millions, except years)202120202019
Fair value of restricted stock units vested$597 $442 $386 
Fair value of restricted stock and performance-based restricted stock units vested275 365 183 
Unrecognized compensation cost for restricted stock units1,062 1,096 1,002 
Unrecognized compensation cost for restricted stock and performance-based restricted stock units344 326 362 
Weighted average remaining period to expense for restricted stock units (years)1.11.31.6
Weighted average remaining period to expense for restricted stock and performance-based restricted stock units (years)1.41.41.1
Share Repurchase Program
From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. All repurchases made during fiscal 2021 were made under the $20.0 billion share repurchase program approved in October 2017, of which authorization for $3.0 billion of share repurchases remained as of January 31, 2021. On February 18, 2021, the Board of Directors approved a new $20.0 billion share repurchase program which, beginning February 22, 2021, replaced the previous share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status.
The Company regularly reviews share repurchase activity and considers several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings, results of operations and the market price of the Company's common stock. The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2021, 2020 and 2019:
Fiscal Years Ended January 31,
(Amounts in millions, except per share data)202120202019
Total number of shares repurchased 19.4 53.9 79.5 
Average price paid per share $135.20 $105.98 $93.18 
Total cash paid for share repurchases$2,625 $5,717 $7,410 
v3.20.4
Accumulated Other Comprehensive Loss
12 Months Ended
Jan. 31, 2021
Other Comprehensive Income (Loss), Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
The following table provides the changes in the composition of total accumulated other comprehensive loss for fiscal 2021, 2020, and 2019:
(Amounts in millions and net of immaterial income taxes)Currency
Translation
and Other
Net Investment HedgesUnrealized Gain on Available-for-Sale SecuritiesCash Flow HedgesMinimum
Pension Liability
Total
Balances as of February 1, 2018$(12,136)$1,030 $1,646 $122 $(843)$(10,181)
Adoption of new accounting standards(1)
89 93 (1,646)28 — (1,436)
Other comprehensive income (loss) before reclassifications, net(2,093)272 — (339)93 (2,067)
Reclassifications to income, net(2)
2,055 — — 49 38 2,142 
Balances as of January 31, 2019(12,085)1,395 — (140)(712)(11,542)
Other comprehensive income (loss) before reclassifications, net(3)
281 122 — (399)(1,283)(1,279)
Reclassifications to income, net(23)— — — 39 16 
Balances as of January 31, 2020(11,827)1,517 — (539)(1,956)(12,805)
Other comprehensive income (loss) before reclassifications, net214 (221)— 186 (172)
Reclassifications to income, net(4)
841 — — 49 142 1,032 
Balances as of January 31, 2021$(10,772)$1,296 $— $(304)$(1,986)$(11,766)
(1) Primarily relates to the adoption of ASU 2016-01 and ASU 2018-02, Income StatementReporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
(2) Includes a cumulative foreign currency translation loss of $2.0 billion, for which there was no related income taxes, upon sale of the majority stake in Walmart Brazil. Refer to Note 12.
(3) Primarily includes the remeasurement of Asda Group Limited's ("Asda") pension benefit obligation subsequent to the cash contribution made by Asda in fiscal 2020. Refer to Note 11.
(4) Includes a cumulative foreign currency translation loss of $0.8 billion, for which there was no related income taxes, upon sale of the majority stake in Walmart Argentina. Refer to Note 12.
Amounts reclassified from accumulated other comprehensive loss for derivatives are recorded in interest, net, in the Company's Consolidated Statements of Income, and the amounts for the minimum pension liability, as well as the cumulative translation resulting from the disposition of a business, are recorded in other gains and losses in the Company's Consolidated Statements of Income.
v3.20.4
Accrued Liabilities
12 Months Ended
Jan. 31, 2021
Accrued Liabilities [Abstract]  
Accrued Liabilities Accrued Liabilities
The Company's accrued liabilities consist of the following as of January 31, 2021 and 2020:
 January 31,
(Amounts in millions)20212020
Liabilities held for sale(1)
$12,734 $— 
Accrued wages and benefits(2)
7,654 6,093 
Self-insurance(3)
4,698 4,469 
Accrued non-income taxes(4)
3,328 3,039 
Deferred gift card revenue2,310 1,990 
Other(5)
7,242 6,705 
Total accrued liabilities$37,966 $22,296 
(1)Liabilities held for sale relate to the Company's operations in Japan and the U.K. classified as held for sale as of January 31, 2021. See Note 12.
(2)Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans.
(3)Self-insurance consists of insurance-related liabilities, such as workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits.
(4)Accrued non-income taxes include accrued payroll, property, value-added, sales and miscellaneous other taxes.
(5)Other accrued liabilities consist of various items such as interest, maintenance, utilities, legal contingencies, and advertising.
v3.20.4
Short-term Borrowings and Long-term Debt
12 Months Ended
Jan. 31, 2021
Long-term Debt, Unclassified [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt
Short-term borrowings consist of commercial paper and lines of credit. Short-term borrowings as of January 31, 2021 and 2020 were $0.2 billion and $0.6 billion, respectively, with weighted-average interest rates of 1.9% and 5.0%, respectively. Short-term borrowings as of January 31, 2020 were primarily outside of the U.S.
The Company has various committed lines of credit in the U.S. to support its commercial paper program and are summarized in the following table:
January 31, 2021January 31, 2020
(Amounts in millions)AvailableDrawnUndrawnAvailableDrawnUndrawn
Five-year credit facility
$5,000 $— $5,000 $5,000 $— $5,000 
364-day revolving credit facility(1)
10,000 — 10,000 10,000 — 10,000 
Total$15,000 $— $15,000 $15,000 $— $15,000 
(1)     In April 2020, the Company renewed and extended its existing 364-day revolving credit facility.
The committed lines of credit in the table above mature at various times between April 2021 and May 2024, carry interest rates generally ranging between LIBOR plus 10 basis points and LIBOR plus 75 basis points, and incur commitment fees ranging between 1.5 and 4.0 basis points. In conjunction with the committed lines of credit listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to the maximum amount of secured debt. Additionally, the Company has syndicated and fronted letters of credit available which totaled $1.8 billion as of January 31, 2021 and 2020, of which $1.8 billion and $1.6 billion was drawn as of January 31, 2021 and 2020, respectively.
The Company's long-term debt, which includes the fair value instruments further discussed in Note 8, consists of the following as of January 31, 2021 and 2020:
 January 31, 2021January 31, 2020
(Amounts in millions)Maturity Dates
By Fiscal Year
Amount
Average Rate(1)
Amount
Average Rate(1)
Unsecured debt
Fixed2022 - 2050$35,216 3.9%$39,752 3.8%
Variable2022750 0.5%1,500 2.1%
Total U.S. dollar denominated35,966 41,252 
Fixed2023 - 20303,034 3.3%2,758 3.3%
Variable— — 
Total Euro denominated3,034 2,758 
Fixed2031 - 20393,682 5.4%3,518 5.4%
Variable— — 
Total Sterling denominated3,682 3,518 
Fixed2023-20281,624 0.3%1,652 0.4%
Variable— — 
Total Yen denominated1,624 1,652 
Total unsecured debt44,306 49,180 
Total other(2)
(104)
Total debt44,309 49,076 
Less amounts due within one year(3,115)(5,362)
Long-term debt$41,194 $43,714 
(1)The average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end interest rates.
(2)Includes deferred loan costs, discounts, fair value hedges, foreign-held debt and secured debt.
Annual maturities of long-term debt during the next five years and thereafter are as follows:
(Amounts in millions)Annual
Fiscal YearMaturities
2022$3,115 
20233,014 
20244,721 
20254,360 
20261,480 
Thereafter27,619 
Total$44,309 
Debt Issuances
There were no long-term debt issuances in fiscal 2021. Information on long-term debt issued during fiscal 2020, for general corporate purposes, is as follows:
(Amounts in millions)
Issue DatePrincipal AmountMaturity DateFixed vs. FloatingInterest RateNet Proceeds
April 23, 2019$1,500July 8, 2024Fixed2.850%$1,493 
April 23, 2019$1,250July 8, 2026Fixed3.050%1,242 
April 23, 2019$1,250July 8, 2029Fixed3.250%1,243 
September 24, 2019$500September 24, 2029Fixed2.375%497 
September 24, 2019$1,000September 24, 2049Fixed2.950%975 
Various$42VariousVariousVarious42 
Total$5,492 
The fiscal 2020 issuances are senior, unsecured notes which rank equally with all other senior, unsecured debt obligations of the Company, and are not convertible or exchangeable. These issuances do not contain any financial covenants which restrict the Company's ability to pay dividends or repurchase company stock.
Repayments
The following table provides details of debt repayments during fiscal 2021:
(Amounts in millions)
Maturity DatePrincipal AmountFixed vs. FloatingInterest RateRepayment
June 23, 2020$750FloatingFloating$750 
June 23, 2020$1,250Fixed2.850%1,250
July 8, 2020$840Fixed3.630%840
July 28, 2020¥10,000Fixed1.600%95
October 25, 2020$1,197Fixed3.250%1,197
December 15, 2020$1,250Fixed1.900%1,250
Total repayment of matured debt$5,382 
The following table provides details of debt repayments during fiscal 2020:
(Amounts in millions)
Maturity DatePrincipal AmountFixed vs. FloatingInterest RateRepayment
February 1, 2019$364Fixed4.125%$364 
October 20, 2019$300FloatingFloating300 
October 20, 2019$1,200Fixed1.750%1,200 
Various (1)
$43VariousVarious43 
Total repayment of matured debt$1,907 
(1) Includes repayments of smaller long-term debt as it matured in several non-U.S. operations.
v3.20.4
Leases
12 Months Ended
Jan. 31, 2021
Leases [Abstract]  
Leases Leases
The Company leases certain retail locations, distribution and fulfillment centers, warehouses, office spaces, land and equipment throughout the U.S. and internationally.
The Company's lease costs recognized in the Consolidated Statement of Income consist of the following:
Fiscal years ended January 31,
(Amounts in millions)20212020
Operating lease cost(1)
$2,626 $2,670
Finance lease cost:
   Amortization of right-of-use assets583 480
   Interest on lease obligations298 306
Variable lease cost777 691
(1) Rentals (including amounts applicable to taxes, insurance, maintenance, other operating expenses and contingent rentals) under operating leases and other short-term rental arrangements were $3.0 billion in fiscal 2019.
Other lease information is as follows:
Fiscal years ended January 31,
(Dollar amounts in millions)20212020
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases$2,629 $2,614
Operating cash flows from finance leases286 278
Financing cash flows from finance leases546 485
Assets obtained in exchange for operating lease obligations2,131 2,151
Assets obtained in exchange for finance lease obligations1,547 1,081
As of January 31,
20212020
Weighted-average remaining lease term - operating leases(1)
12.5 years15.6 years
Weighted-average remaining lease term - finance leases(1)
13.7 years14.4 years
Weighted-average discount rate - operating leases(1)
6.1%5.4%
Weighted-average discount rate - finance leases(1)
6.8%8.6%
(1) For fiscal 2021, weighted average remaining lease term and discount rate amounts exclude operations classified as held for sale.
The aggregate annual lease obligations at January 31, 2021, are as follows:
(Amounts in millions)
Fiscal YearOperating LeasesFinance Leases
2022$2,189 $717 
20232,017 613 
20241,861 551 
20251,697 496 
20261,527 449 
Thereafter11,658 4,746 
Total undiscounted lease obligations20,949 7,572 
Less imputed interest(6,574)(3,234)
Net lease obligations$14,375 $4,338 
Leases Leases
The Company leases certain retail locations, distribution and fulfillment centers, warehouses, office spaces, land and equipment throughout the U.S. and internationally.
The Company's lease costs recognized in the Consolidated Statement of Income consist of the following:
Fiscal years ended January 31,
(Amounts in millions)20212020
Operating lease cost(1)
$2,626 $2,670
Finance lease cost:
   Amortization of right-of-use assets583 480
   Interest on lease obligations298 306
Variable lease cost777 691
(1) Rentals (including amounts applicable to taxes, insurance, maintenance, other operating expenses and contingent rentals) under operating leases and other short-term rental arrangements were $3.0 billion in fiscal 2019.
Other lease information is as follows:
Fiscal years ended January 31,
(Dollar amounts in millions)20212020
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases$2,629 $2,614
Operating cash flows from finance leases286 278
Financing cash flows from finance leases546 485
Assets obtained in exchange for operating lease obligations2,131 2,151
Assets obtained in exchange for finance lease obligations1,547 1,081
As of January 31,
20212020
Weighted-average remaining lease term - operating leases(1)
12.5 years15.6 years
Weighted-average remaining lease term - finance leases(1)
13.7 years14.4 years
Weighted-average discount rate - operating leases(1)
6.1%5.4%
Weighted-average discount rate - finance leases(1)
6.8%8.6%
(1) For fiscal 2021, weighted average remaining lease term and discount rate amounts exclude operations classified as held for sale.
The aggregate annual lease obligations at January 31, 2021, are as follows:
(Amounts in millions)
Fiscal YearOperating LeasesFinance Leases
2022$2,189 $717 
20232,017 613 
20241,861 551 
20251,697 496 
20261,527 449 
Thereafter11,658 4,746 
Total undiscounted lease obligations20,949 7,572 
Less imputed interest(6,574)(3,234)
Net lease obligations$14,375 $4,338 
v3.20.4
Fair Value Measurements
12 Months Ended
Jan. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
Level 1: observable inputs such as quoted prices in active markets;
Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.
The Company measures the fair value of equity investments on a recurring basis in the accompanying Consolidated Balance Sheets. The fair value of the Company's equity investments with readily determinable fair values are as follows:
(Amounts in millions)Fair Value as of January 31, 2021Fair Value as of January 31, 2020
Equity investments measured using Level 1 inputs$6,517 $2,715 
Equity investments measured using Level 2 inputs7,905 2,723 
Total$14,422 $5,438 
Derivatives
The Company also has derivatives recorded at fair value. Derivative fair values are the estimated amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward curves. As of January 31, 2021 and January 31, 2020, the notional amounts and fair values of these derivatives were as follows:
 January 31, 2021January 31, 2020
(Amounts in millions)Notional AmountFair ValueNotional AmountFair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges$3,250 $166 (1)$4,000 $97 (1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges1,250 311 (1)3,750 455 (1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges5,073 (394)(3)4,067 (696)(2)
Total$9,573 $83 $11,817 $(144)
(1)Classified in other long-term assets within the Company's Consolidated Balance Sheets.
(2)Classified in deferred income taxes and other within the Company's Consolidated Balance Sheets.
(3)Approximately $456 million of cash flow hedges were classified in deferred income taxes and other and $62 million of cash flow were classified in other long-term assets in the Company's Consolidated Balance Sheets.
Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges.
As further discussed in Note 12, the Company's operations in Argentina, Japan and the U.K. met the held for sale criteria in fiscal 2021. As a result, the individual disposal groups were measured at fair value, less costs to sell, which is considered a Level 3 fair value measurement based on each transaction’s expected consideration. The carrying value of the Argentina, Japan and U.K. disposal groups exceeded their fair value, less costs to sell, and as a result, the Company recognized non-recurring impairment charges. The aggregate pre-tax loss of $8.3 billion associated with the divestiture of these operations in the Walmart International segment was recorded in other gains and losses in the Consolidated Statements of Income for the year ended January 31, 2021 and included these impairment charges as well as a $2.3 billion charge related to the Asda pension plan. These impairment charges include the anticipated release of non-cash cumulative foreign currency translation losses associated with the disposal groups. Other impairment charges for assets measured at fair value on a nonrecurring basis during fiscal 2021 were immaterial.
For the fiscal year ended January 31, 2020, the Company recorded impairment charges related to assets measured at fair value on a non-recurring basis primarily related to the following:
in the Walmart U.S. segment, $0.5 billion in impairment charges for impaired assets consisting primarily of trade names and acquired developed software due to strategic decisions that resulted in the write-down of certain eCommerce assets; and
in the Walmart International segment, $0.4 billion in impairment charges consisting primarily of the write-off of the carrying value of one of Flipkart's two fashion trade names, Jabong.com, as a result of a strategic decision to focus on the Myntra.com fashion platform.
These impairment charges were classified in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. Other impairment charges for assets measured at fair value on a nonrecurring basis during fiscal 2020 were immaterial.
For the fiscal year ended January 31, 2019, the Company sold the majority stake in Walmart Brazil during fiscal 2019 as discussed in Note 12. 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. When measured as held for sale, these assets were fully impaired as the carrying value of the disposal group exceeded the fair value, less costs to sell and contributed to a pre-tax net loss of $4.8 billion in the Walmart International segment, which was recorded in other gains and losses in the Company's Consolidated Statement of Income. Other impairment charges to assets measured at fair value on a nonrecurring basis during fiscal 2019 were immaterial.
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 January 31, 2021 and 2020, are as follows:
 January 31, 2021January 31, 2020
(Amounts in millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, including amounts due within one year$44,309 $54,240 $49,076 $57,769 
v3.20.4
Taxes
12 Months Ended
Jan. 31, 2021
Income Tax Disclosure [Abstract]  
Taxes Taxes
The components of income (loss) before income taxes are as follows:
 Fiscal Years Ended January 31,
(Amounts in millions)202120202019
U.S.$20,003 $17,098 $15,875 
Non-U.S.561 3,018 (4,415)
Total income before income taxes$20,564 $20,116 $11,460 
A summary of the provision for income taxes is as follows:
 Fiscal Years Ended January 31,
(Amounts in millions)202120202019
Current:
U.S. federal$2,991 $2,794 $2,763 
U.S. state and local742 587 493 
International1,127 1,205 1,495 
Total current tax provision4,860 4,586 4,751 
Deferred:
U.S. federal2,316 663 (361)
U.S. state and local23 35 (16)
International(341)(369)(93)
Total deferred tax expense (benefit)1,998 329 (470)
Total provision for income taxes$6,858 $4,915 $4,281 
In December 2017, the Tax Act was enacted and significantly changed U.S. income tax law. Beginning January 2018, the Tax Act reduced the U.S. statutory tax rate and created new taxes focused on foreign-sourced earnings and related-party payments, including the creation of the base erosion anti-abuse tax and a new tax on global intangible low-taxed income ("GILTI"). In addition, the Company was subject to a one-time transition tax in fiscal 2018 on accumulated foreign subsidiary earnings not previously subject to U.S. income tax.
The SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"), which allowed companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of January 31, 2018, in accordance with SAB 118. The Company elected to apply the measurement period provisions of this guidance to certain income tax effects of the Tax Act when it became effective. The provisional measurement period ended in the fourth quarter of fiscal 2019.  Management completed the Company's accounting for tax reform in fiscal 2019 based on prevailing regulations and currently available information, and any additional guidance issued by the IRS could impact the aforementioned amounts in future periods. In fiscal 2019, the Company recorded $442 million of additional tax expense related to the Tax Act, included as a component of provision for income taxes.
One-time Transition Tax
The Tax Act required the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets, as defined by the Tax Act, and 8.0% on the remaining earnings. The Company calculated the transition tax liability and increased the provisional amount by $413 million, with the increase included as a component of provision for income taxes in fiscal 2019.
Effective Income Tax Rate Reconciliation
A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax income from continuing operations is as follows:
 Fiscal Years Ended January 31,
 202120202019
U.S. statutory tax rate21.0 %21.0 %21.0 %
U.S. state income taxes, net of federal income tax benefit2.9 %2.2 %3.0 %
Impact of the Tax Act:
One-time transition tax— %— %3.6 %
Deferred tax effects— %— %(0.7)%
Income taxed outside the U.S.(0.1)%(1.0)%(3.4)%
Disposal and wind-down of certain business operations7.1 %— %6.7 %
Valuation allowance2.3 %2.3 %6.3 %
Net impact of repatriated international earnings(0.4)%0.4 %0.8 %
Federal tax credits(0.9)%(0.8)%(1.3)%
Enacted change in tax laws— %(1.9)%— %
Change in reserve for tax contingencies0.8 %2.5 %0.6 %
Other, net0.6 %(0.3)%0.8 %
Effective income tax rate33.3 %24.4 %37.4 %
The following sections regarding deferred taxes, unremitted earnings, net operating losses, tax credit carryforwards, valuation allowances and uncertain tax positions exclude amounts related to operations classified as held for sale as of January 31, 2021.
Deferred Taxes
The significant components of the Company's deferred tax account balances are as follows:
 January 31,
(Amounts in millions)20212020
Deferred tax assets:
Loss and tax credit carryforwards$9,179 $9,056 
Accrued liabilities2,582 2,483 
Share-based compensation224 250 
Lease obligations4,450 4,098 
Other589 887 
Total deferred tax assets17,024 16,774 
Valuation allowances(8,782)(8,588)
Deferred tax assets, net of valuation allowances8,242 8,186 
Deferred tax liabilities:
Property and equipment4,802 4,364 
Acquired intangibles1,071 1,153 
Inventory1,235 1,414 
Lease right of use assets4,390 3,998 
Mark-to-market investments2,678 723 
Other675 824 
Total deferred tax liabilities14,851 12,476 
Net deferred tax liabilities$6,609 $4,290 
The deferred taxes noted above are classified as follows in the Company's Consolidated Balance Sheets:
  January 31,
(Amounts in millions)20212020
Balance Sheet classification
Assets:
Other long-term assets$1,836 $1,914