WALMART INC., 10-Q filed on 9/2/2021
Quarterly Report
v3.21.2
Cover Page - shares
6 Months Ended
Jul. 31, 2021
Aug. 31, 2021
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 31, 2021  
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, 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   2,788,497,816
Entity Central Index Key 0000104169  
Current Fiscal Year End Date --01-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Common Stock, par value $0.10 per share    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol WMT  
Security Exchange Name NYSE  
1.900% Notes Due 2022    
Document Information [Line Items]    
Title of 12(b) Security 1.900% Notes Due 2022  
Trading Symbol WMT22  
Security Exchange Name NYSE  
2.550% Notes Due 2026    
Document Information [Line Items]    
Title of 12(b) Security 2.550% Notes Due 2026  
Trading Symbol WMT26  
Security Exchange Name NYSE  
v3.21.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jul. 31, 2021
Jul. 31, 2020
Jul. 31, 2021
Jul. 31, 2020
Revenues:        
Net sales $ 139,871 $ 136,824 $ 277,030 $ 270,496
Membership and other income 1,177 918 2,328 1,868
Total revenues 141,048 137,742 279,358 272,364
Costs and expenses:        
Cost of sales 105,183 102,689 208,455 204,715
Operating, selling, general and administrative expenses 28,511 28,994 56,640 56,366
Operating income 7,354 6,059 14,263 11,283
Interest:        
Debt 437 577 918 1,087
Finance lease 78 81 163 163
Interest income (37) (23) (67) (66)
Interest, net 478 635 1,014 1,184
Other (gains) and losses 953 (3,222) 3,482 (3,943)
Income before income taxes 5,923 8,646 9,767 14,042
Provision for income taxes 1,559 2,207 2,592 3,529
Consolidated net income 4,364 6,439 7,175 10,513
Consolidated net (income) loss attributable to noncontrolling interest (88) 37 (169) (47)
Consolidated net income attributable to Walmart $ 4,276 $ 6,476 $ 7,006 $ 10,466
Net income per common share:        
Basic net income per common share attributable to Walmart (in dollars per share) $ 1.53 $ 2.29 $ 2.50 $ 3.70
Diluted net income per common share attributable to Walmart (in dollars per share) $ 1.52 $ 2.27 $ 2.48 $ 3.67
Weighted-average common shares outstanding:        
Basic (shares) 2,799 2,832 2,807 2,832
Diluted (shares) 2,812 2,848 2,820 2,848
Dividends declared per common share (in dollars per share) $ 0 $ 0 $ 2.20 $ 2.16
v3.21.2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jul. 31, 2021
Jul. 31, 2020
Jul. 31, 2021
Jul. 31, 2020
Statement of Comprehensive Income [Abstract]        
Consolidated net income $ 4,364 $ 6,439 $ 7,175 $ 10,513
Consolidated net (income) loss attributable to noncontrolling interest (88) 37 (169) (47)
Consolidated net income attributable to Walmart 4,276 6,476 7,006 10,466
Other comprehensive income (loss), net of income taxes        
Currency translation and other 201 298 3,160 (3,670)
Net investment hedges 0 (191) (1,202) (34)
Cash flow hedges (155) 313 (135) 34
Minimum pension liability 2 16 1,971 31
Other comprehensive income (loss), net of income taxes 48 436 3,794 (3,639)
Other comprehensive (income) loss attributable to noncontrolling interest (78) (52) (4) 660
Other comprehensive income (loss) attributable to Walmart (30) 384 3,790 (2,979)
Comprehensive income, net of income taxes 4,412 6,875 10,969 6,874
Comprehensive (income) loss attributable to noncontrolling interest (166) (15) (173) 613
Comprehensive income attributable to Walmart $ 4,246 $ 6,860 $ 10,796 $ 7,487
v3.21.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 31, 2021
Jul. 31, 2020
Current assets:      
Cash and cash equivalents $ 22,831 $ 17,741 $ 16,906
Receivables, net 6,103 6,516 5,111
Inventories 47,754 44,949 41,084
Prepaid expenses and other 1,555 20,861 1,895
Total current assets 78,243 90,067 64,996
Property and equipment, net 91,621 92,201 101,182
Operating lease right-of-use assets 13,868 13,642 16,869
Finance lease right-of-use assets, net 4,109 4,005 4,843
Goodwill 29,159 28,983 29,542
Other long-term assets 21,552 23,598 19,950
Total assets 238,552 252,496 237,382
Current liabilities:      
Short-term borrowings 671 224 357
Accounts payable 49,601 49,141 46,326
Dividends payable 3,109 0 3,060
Accrued liabilities 23,915 37,966 23,768
Accrued income taxes 267 242 610
Long-term debt due within one year 1,617 3,115 5,553
Operating lease obligations due within one year 1,441 1,466 1,734
Finance lease obligations due within one year 501 491 549
Total current liabilities 81,122 92,645 81,957
Long-term debt 39,581 41,194 40,959
Long-term operating lease obligations 13,116 12,909 15,669
Long-term finance lease obligations 3,952 3,847 4,673
Deferred income taxes and other 13,654 14,370 12,927
Commitments and contingencies
Equity:      
Common stock 278 282 283
Capital in excess of par value 3,655 3,646 3,197
Retained earnings 84,572 88,763 87,614
Accumulated other comprehensive loss (7,976) (11,766) (15,784)
Total Walmart shareholders' equity 80,529 80,925 75,310
Noncontrolling interest 6,598 6,606 5,887
Total equity 87,127 87,531 81,197
Total liabilities and equity $ 238,552 $ 252,496 $ 237,382
v3.21.2
Condensed Consolidated Statement Of Shareholders' Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital in Excess of Par Value
Retained Earnings
Accumulated Other Comprehensive Loss
Total Walmart Shareholders' Equity
Noncontrolling Interest
Beginning balance (in shares) at Jan. 31, 2020   2,832          
Beginning balance at Jan. 31, 2020 $ 81,552 $ 284 $ 3,247 $ 83,943 $ (12,805) $ 74,669 $ 6,883
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 4,074     3,990   3,990 84
Other comprehensive income (loss), net of income taxes (4,075)       (3,363) (3,363) (712)
Dividends declared (6,117)     (6,117)   (6,117)  
Purchase of Company stock (in shares)   (6)          
Purchase of Company stock, Value (693) $ (1) (26) (666)   (693)  
Dividends declared to noncontrolling interests (359)           (359)
Other (in shares)   6          
Other (272) $ 1 (238) (9)   (246) (26)
Ending balance (in shares) at Apr. 30, 2020   2,832          
Ending balance at Apr. 30, 2020 74,110 $ 284 2,983 81,141 (16,168) 68,240 5,870
Beginning balance (in shares) at Jan. 31, 2020   2,832          
Beginning balance at Jan. 31, 2020 81,552 $ 284 3,247 83,943 (12,805) 74,669 6,883
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 10,513            
Other comprehensive income (loss), net of income taxes (3,639)            
Ending balance (in shares) at Jul. 31, 2020   2,834          
Ending balance at Jul. 31, 2020 81,197 $ 283 3,197 87,614 (15,784) 75,310 5,887
Beginning balance (in shares) at Apr. 30, 2020   2,832          
Beginning balance at Apr. 30, 2020 74,110 $ 284 2,983 81,141 (16,168) 68,240 5,870
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 6,439     6,476   6,476 (37)
Other comprehensive income (loss), net of income taxes 436       384 384 52
Dividends declared to noncontrolling interests (3)           (3)
Other (in shares)   2          
Other 215 $ (1) 214 (3)   210 5
Ending balance (in shares) at Jul. 31, 2020   2,834          
Ending balance at Jul. 31, 2020 81,197 $ 283 3,197 87,614 (15,784) 75,310 5,887
Beginning balance (in shares) at Jan. 31, 2021   2,821          
Beginning balance at Jan. 31, 2021 87,531 $ 282 3,646 88,763 (11,766) 80,925 6,606
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 2,811     2,730   2,730 81
Other comprehensive income (loss), net of income taxes 3,746       3,820 3,820 (74)
Dividends declared (6,200)     (6,200)   (6,200)  
Purchase of Company stock (in shares)   (21)          
Purchase of Company stock, Value (2,832) $ (2) (112) (2,718)   (2,832)  
Dividends declared to noncontrolling interests (408)           (408)
Other (in shares)   5          
Other (56)   (110) 2   (108) 52
Ending balance (in shares) at Apr. 30, 2021   2,805          
Ending balance at Apr. 30, 2021 84,592 $ 280 3,424 82,577 (7,946) 78,335 6,257
Beginning balance (in shares) at Jan. 31, 2021   2,821          
Beginning balance at Jan. 31, 2021 87,531 $ 282 3,646 88,763 (11,766) 80,925 6,606
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 7,175            
Other comprehensive income (loss), net of income taxes 3,794            
Ending balance (in shares) at Jul. 31, 2021   2,791          
Ending balance at Jul. 31, 2021 87,127 $ 278 3,655 84,572 (7,976) 80,529 6,598
Beginning balance (in shares) at Apr. 30, 2021   2,805          
Beginning balance at Apr. 30, 2021 84,592 $ 280 3,424 82,577 (7,946) 78,335 6,257
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Consolidated net income 4,364     4,276   4,276 88
Other comprehensive income (loss), net of income taxes 48       (30) (30) 78
Purchase of Company stock (in shares)   (17)          
Purchase of Company stock, Value (2,369) $ (2) (94) (2,273)   (2,369)  
Dividends declared to noncontrolling interests (10)           (10)
Other (in shares)   3          
Other 502   325 (8)   317 185
Ending balance (in shares) at Jul. 31, 2021   2,791          
Ending balance at Jul. 31, 2021 $ 87,127 $ 278 $ 3,655 $ 84,572 $ (7,976) $ 80,529 $ 6,598
v3.21.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
6 Months Ended
Jul. 31, 2021
Jul. 31, 2020
Cash flows from operating activities:    
Consolidated net income $ 7,175 $ 10,513
Adjustments to reconcile consolidated net income to net cash provided by operating activities:    
Depreciation and amortization 5,302 5,562
Net unrealized and realized (gains) and losses 3,019 (4,006)
Losses on disposal of business operations 433 37
Deferred income taxes (385) 472
Other operating activities 606 305
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:    
Receivables, net 452 823
Inventories (2,725) 2,466
Accounts payable 119 1,052
Accrued liabilities (1,412) 1,428
Accrued income taxes (161) 304
Net cash provided by operating activities 12,423 18,956
Cash flows from investing activities:    
Payments for property and equipment (5,019) (3,569)
Proceeds from the disposal of property and equipment 176 83
Proceeds from disposal of certain operations, net of divested cash 7,935 0
Payments for business acquisitions, net of cash acquired (248) (175)
Other investing activities (442) 27
Net cash provided by (used in) investing activities 2,402 (3,634)
Cash flows from financing activities:    
Net change in short-term borrowings 441 (178)
Repayments of long-term debt (3,010) (2,937)
Dividends paid (3,091) (3,058)
Purchase of Company stock (5,200) (723)
Dividends paid to noncontrolling interest (14) (66)
Other financing activities (685) (852)
Net cash used in financing activities (11,559) (7,814)
Effect of exchange rates on cash, cash equivalents and restricted cash (21) (69)
Net increase in cash, cash equivalents and restricted cash 3,245 7,439
Change in cash and cash equivalents classified as held for sale 1,848 0
Cash, cash equivalents and restricted cash at beginning of year 17,788 9,515
Cash, cash equivalents and restricted cash at end of period $ 22,881 $ 16,954
v3.21.2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares
3 Months Ended 6 Months Ended
Jul. 31, 2021
Jul. 31, 2020
Jul. 31, 2021
Jul. 31, 2020
Statement of Stockholders' Equity [Abstract]        
Dividends declared per common share (in dollars per share) $ 0 $ 0 $ 2.20 $ 2.16
v3.21.2
Summary of Significant Accounting Policies
6 Months Ended
Jul. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The Condensed Consolidated Financial Statements of Walmart Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2021 ("fiscal 2021"). 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 based on a calendar year. In July 2021, the Company's majority-owned Flipkart subsidiary completed a $3.6 billion new equity funding, a portion of which was contributed by the Company. This transaction reduced the Company's ownership of Flipkart to approximately 75% in the third quarter of fiscal 2022.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Use of Estimates
The Condensed Consolidated Financial Statements have been prepared in conformity with GAAP. Those principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from those estimates.
Investments
Investments in equity and debt securities are recorded in other long-term assets in the Condensed Consolidated Balance Sheets. Changes in fair value of equity securities measured on a recurring basis are recognized in other gains and losses in the Condensed Consolidated Statements of Income. Refer to Note 5 for details. Equity investments without readily determinable fair values are carried at cost and are adjusted for any observable price changes or impairments within other gains and losses in the Condensed Consolidated Statements of Income. Investments in debt securities classified as trading are reported at fair value with interest income recorded in interest income in the Condensed Consolidated Statements of Income. As of July 31, 2021, the Company had $1.0 billion in debt securities classified as trading.
Indemnification Liabilities
The Company has provided certain indemnifications in connection with its divestitures and has recorded indemnification liabilities equal to the estimated fair value of the obligations upon inception. As of July 31, 2021 and January 31, 2021, the Company had $0.8 billion and $0.6 billion, respectively, of certain legal and tax indemnification liabilities recorded within deferred income taxes and other in the Condensed Consolidated Balance Sheets. The maximum amount of potential future payments under these indemnities was $3.6 billion, based on exchange rates as of July 31, 2021.
v3.21.2
Net Income Per Common Share
6 Months Ended
Jul. 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 anti-dilutive and not included in the calculation of diluted net income per common share attributable to Walmart for the three and six months ended July 31, 2021 and 2020.
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net income per common share attributable to Walmart:
Three Months Ended July 31,Six Months Ended July 31,
(Amounts in millions, except per share data)2021202020212020
Numerator
Consolidated net income$4,364 $6,439 $7,175 $10,513 
Consolidated net (income) loss attributable to noncontrolling interest(88)37 (169)(47)
Consolidated net income attributable to Walmart$4,276 $6,476 $7,006 $10,466 
Denominator
Weighted-average common shares outstanding, basic2,799 2,832 2,807 2,832 
Dilutive impact of share-based awards13 16 13 16 
Weighted-average common shares outstanding, diluted2,812 2,848 2,820 2,848 
Net income per common share attributable to Walmart
Basic$1.53 $2.29 $2.50 $3.70 
Diluted1.52 2.27 2.48 3.67 
v3.21.2
Accumulated Other Comprehensive Loss
6 Months Ended
Jul. 31, 2021
Other Comprehensive Income (Loss), Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
Amounts reclassified from accumulated other comprehensive loss for derivative instruments are generally recorded in interest, net, in the Company's Condensed Consolidated Statements of Income. Amounts for the minimum pension liability, as well as the cumulative translation and any related net investment hedge impacts resulting from a disposition of a business, are recorded in other gains and losses in the Company's Condensed Consolidated Statements of Income. The following tables provide the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2021 and July 31, 2021, respectively, as well as for the three months ended April 30, 2020 and July 31, 2020, respectively:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2021$(10,772)$1,296 $(304)$(1,986)$(11,766)
Other comprehensive loss before reclassifications, net(225)(7)(26)(1)(259)
Reclassifications related to business dispositions, net(1)
3,258 (1,195)30 1,966 4,059 
Reclassifications to income, net— — 16 20 
Balances as of April 30, 2021$(7,739)$94 $(284)$(17)$(7,946)
Other comprehensive income (loss) before reclassifications, net123 — (193)(3)(73)
Reclassifications to income, net— — 38 43 
Balances as of July 31, 2021$(7,616)$94 $(439)$(15)$(7,976)
(1) Upon closing of the sale of the Company's operations in the U.K. and Japan during the first quarter of fiscal 2022, these amounts were released from accumulated other comprehensive loss, the majority of which was considered in the impairment evaluation when the individual disposal groups met the held for sale classification in fiscal 2021.
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2020$(11,827)$1,517 $(539)$(1,956)$(12,805)
Other comprehensive income (loss) before reclassifications, net(3,256)157 (295)(4)(3,398)
Reclassifications to income, net— — 16 19 35 
Balances as of April 30, 2020$(15,083)$1,674 $(818)$(1,941)$(16,168)
Other comprehensive income (loss) before reclassifications, net246 (191)303 (2)356 
Reclassifications to income, net— — 10 18 28 
Balances as of July 31, 2020$(14,837)$1,483 $(505)$(1,925)$(15,784)
v3.21.2
Short-term Borrowings and Long-term Debt
6 Months Ended
Jul. 31, 2021
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt
The Company has various committed lines of credit in the U.S. that are used to support its commercial paper program. In April 2021, the Company renewed and extended its existing 364-day revolving credit facility of $10.0 billion as well as its five-year credit facility of $5.0 billion. In total, the Company had committed lines of credit in the U.S. of $15.0 billion at July 31, 2021 and January 31, 2021, all undrawn.
The following table provides the changes in the Company's long-term debt for the six months ended July 31, 2021:
(Amounts in millions)Long-term debt due within one yearLong-term debtTotal
Balances as of February 1, 2021$3,115 $41,194 $44,309 
Repayments of long-term debt(3,010)— (3,010)
Reclassifications of long-term debt1,511 (1,511)— 
Other(102)(101)
Balances as of July 31, 2021$1,617 $39,581 $41,198 
v3.21.2
Fair Value Measurements
6 Months Ended
Jul. 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.
As described in Note 1, the Company measures the fair value of certain equity investments on a recurring basis in the accompanying Condensed Consolidated Balance Sheets. The fair value of the Company's equity investments measured on a recurring basis is as follows:
(Amounts in millions)Fair Value as of July 31, 2021Fair Value as of January 31, 2021
Equity investments measured using Level 1 inputs$5,567 $6,517 
Equity investments measured using Level 2 inputs5,730 7,905 
Total$11,297 $14,422 
Derivatives
The Company also has derivatives recorded at fair value. Derivative fair values are the estimated amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward curves. As of July 31, 2021 and January 31, 2021, the notional amounts and fair values of these derivatives were as follows:
 July 31, 2021January 31, 2021
(Amounts in millions)Notional AmountFair ValueNotional AmountFair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges$3,250 $133 
(1)
$3,250 $166 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges— — 1,250 311 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges8,243 (616)
(2)
5,073 (394)
(2)
Total$11,493 $(483)$9,573 $83 
(1)Classified in other long-term assets within the Company's Condensed Consolidated Balance Sheets.
(2)Classified primarily in deferred income taxes and other within the Company's Condensed Consolidated Balance Sheets.
Nonrecurring Fair Value Measurements
In addition to assets and liabilities 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 of January 31, 2021, the Company's operations in the U.K. ("Asda") and operations in Japan ("Seiyu") met the held for sale criteria, and as a result the Company recorded non-recurring impairment charges in the fourth quarter of fiscal 2021 as the carrying value of the disposal groups exceeded their fair value, less costs to sell. Upon completing the sales of Asda in February 2021 and Seiyu in March 2021, the Company recorded incremental non-recurring impairment charges of $0.4 billion in the first quarter of fiscal 2022 within other gains and losses in the Condensed Consolidated Statements of Income. Refer to Note 6. The Company did not have other material assets or liabilities resulting in nonrecurring fair value measurements as of July 31, 2021.
Other Fair Value Disclosures
The Company records cash and cash equivalents, restricted cash, and short-term borrowings at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities.
The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the Company's current incremental borrowing rate for similar types of borrowing arrangements. The carrying value and fair value of the Company's long-term debt as of July 31, 2021 and January 31, 2021, are as follows: 
 July 31, 2021January 31, 2021
(Amounts in millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, including amounts due within one year$41,198 $50,373 $44,309 $54,240 
v3.21.2
Divestitures
6 Months Ended
Jul. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures Divestitures
During fiscal 2022, the Company completed the following transactions related to the Company's Walmart International segment. After closing these transactions, total assets of the Walmart International segment were $87.8 billion as of July 31, 2021, as compared to $109.4 billion as of January 31, 2021.
Asda
In February 2021, the Company completed the divestiture of Asda, the Company's retail operations in the U.K., for net consideration of $9.6 billion. Upon closing of the transaction, the Company recorded an incremental pre-tax loss of $0.2 billion in other gains and losses in its Condensed Consolidated Statement of Income in the first quarter of fiscal 2022, primarily related to changes in the net assets of the disposal group, currency exchange rate fluctuations and customary purchase price adjustments upon closing. During the first quarter of fiscal 2022, the Company deconsolidated the financial statements of Asda and recognized its retained investment in Asda as a debt security within other long-term assets and also recognized certain legal and tax indemnity liabilities within deferred income taxes and other on the Condensed Consolidated Balance Sheet.
Seiyu
In March 2021, the Company completed the divestiture of Seiyu, the Company's retail operations in Japan, for net consideration of $1.2 billion. Upon closing of the transaction, the Company recorded an incremental pre-tax loss of $0.2 billion in other gains and losses in its Condensed Consolidated Statement of Income in the first quarter of fiscal 2022, primarily related to changes in the net assets of the disposal group, currency exchange rate fluctuations and customary purchase price adjustments upon closing. During the first quarter of fiscal 2022, the Company deconsolidated the financial statements of Seiyu and recognized its retained 15 percent ownership interest in Seiyu as an equity investment within other long-term assets on the Condensed Consolidated Balance Sheet.
v3.21.2
Contingencies
6 Months Ended
Jul. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
Legal Proceedings
The Company is involved in a number of legal proceedings. The Company has made accruals with respect to these matters, where appropriate, which are reflected in the Company's Condensed Consolidated Financial Statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. However, where a liability is reasonably possible and may be material, such matters have been disclosed. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company and its shareholders.
Unless stated otherwise, the matters discussed below, if decided adversely or settled by the Company, individually or in the aggregate, may result in a liability material to the Company's financial condition, results of operations or cash flows.
Opioids Litigation
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 payers, 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. On October 22, 2020, the Company filed a declaratory judgment action in the U.S. District Court for the Eastern District of Texas against the U.S. Department of Justice (the "DOJ") and the U.S. Drug Enforcement Administration, asking a federal court to clarify the roles and responsibilities of pharmacists and pharmacies as to the dispensing and distribution of opioids under the Controlled Substances Act (the "CSA"). The Company’s action was dismissed. The Company has appealed this decision to the fifth circuit and awaits the court's decision. On December 22, 2020, the DOJ filed a civil complaint in the U.S. District Court for the District of Delaware alleging that the Company unlawfully dispensed controlled substances from its pharmacies and unlawfully distributed controlled substances to those pharmacies. The complaint alleges that this conduct resulted in violations of the CSA. The DOJ is seeking civil penalties and injunctive relief. The Company filed a motion to dismiss the DOJ complaint on February 22, 2021. The DOJ filed its opposition brief on April 23, 2021 and the Company filed its reply brief on May 24, 2021.
In addition, the Company is the subject of two securities class actions alleging violations of the federal securities laws regarding the Company's disclosures with respect to opioids, filed in the U.S. District Court for the District of Delaware on January 20, 2021 and March 5, 2021 purportedly on behalf of a class of investors who acquired Walmart stock from March 30, 2016 through December 22, 2020. Those cases have been consolidated. Derivative actions were also filed by two of the Company's shareholders in the U.S. District Court for the District of Delaware on February 9, 2021 and April 16, 2021 alleging breach of fiduciary duties against certain of its current and former directors with respect to oversight of the Company's distribution and dispensing of opioids and also alleging violations of the federal securities laws and other breaches of duty by current directors and two current officers in connection with the Company's opioids disclosures.
The Company cannot reasonably estimate any loss or range of loss that may arise from the various Opioids Litigation and intends to vigorously defend these litigation 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.
Asda Equal Value Claims
Prior to the divestiture of Asda, the Company, through its Asda subsidiary, was a defendant in certain equal value claims that began in 2008 and are proceeding before an Employment Tribunal in Manchester in the United Kingdom on behalf of current and former Asda store employees (the "Asda Equal Value Claims"), and further claims may be asserted in the future. Subsequent to the divestiture of Asda in February 2021, the Company will continue to conduct the defense of these claims. While potential liability for these claims remains with Asda, the Company has agreed to provide indemnification with respect to these claims up to a contractually determined amount. 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 related to these proceedings. Accordingly, the Company can provide no assurance as to the scope and outcomes of these matters.
v3.21.2
Segments and Disaggregated Revenue
6 Months Ended
Jul. 31, 2021
Segment Reporting Information, Profit (Loss) [Abstract]  
Segments and Disaggregated Revenue Segments and Disaggregated Revenue
Segments
The Company is engaged in the operation of retail, wholesale, eCommerce websites and other units located throughout the U.S., Africa, Canada, Central America, Chile, China, India and Mexico. 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 and other measures, 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 July 31,Six Months Ended July 31,
(Amounts in millions)
2021202020212020
Net sales:
Walmart U.S.$98,192 $93,282 $191,359 $182,025 
Walmart International23,035 27,167 50,335 56,933 
Sam's Club18,644 16,375 35,336 31,538 
Net sales$139,871 $136,824 $277,030 $270,496 
Operating income by segment, as well as operating loss for corporate and support, interest, net and other gains and losses are as follows:
 Three Months Ended July 31,Six Months Ended July 31,
(Amounts in millions)
2021202020212020
Operating income (loss):
Walmart U.S.$6,089 $5,057 $11,544 $9,359 
Walmart International861 812 2,055 1,618 
Sam's Club660 592 1,235 1,086 
Corporate and support(256)(402)(571)(780)
Operating income7,354 6,059 14,263 11,283 
Interest, net478 635 1,014 1,184 
Other (gains) and losses953 (3,222)3,482 (3,943)
Income before income taxes$5,923 $8,646 $9,767 $14,042 
Disaggregated Revenues
In the following tables, segment net sales are disaggregated by either merchandise category or by market. From time to time, the Company revises the assignment of net sales of a particular item to a merchandise category. When the assignment changes, previous period amounts are reclassified to be comparable to the current period's presentation.
In addition, net sales related to eCommerce are provided for each segment, which include omni-channel sales, where a customer initiates an order digitally and the order is fulfilled through a store or club.
(Amounts in millions)Three Months Ended July 31,Six Months Ended July 31,
Walmart U.S. net sales by merchandise category2021202020212020
Grocery$54,649 $51,545 $106,040 $104,466 
General merchandise31,707 31,682 62,314 57,148 
Health and wellness10,480 9,154 20,450 18,754 
Other categories1,356 901 2,555 1,657 
Total$98,192 $93,282 $191,359 $182,025 
Of Walmart U.S.'s total net sales, approximately $11.2 billion and $10.5 billion related to eCommerce for the three months ended July 31, 2021 and 2020, respectively, and approximately $22.5 billion and $18.8 billion related to eCommerce for the six months ended July 31, 2021 and 2020, respectively.
(Amounts in millions)Three Months Ended July 31,Six Months Ended July 31,
Walmart International net sales by market2021202020212020
Mexico and Central America$8,658 $7,208 $16,988 $15,704 
United Kingdom— 6,698 3,811 13,830 
Canada5,492 5,127 10,340 9,413 
China3,001 2,579 6,774 5,947 
Other5,884 5,555 12,422 12,039 
Total$23,035 $27,167 $50,335 $56,933 
Of Walmart International's total net sales, approximately $4.1 billion and $3.3 billion related to eCommerce for the three months ended July 31, 2021 and 2020, respectively, and approximately $8.4 billion and $6.2 billion related to eCommerce for the six months ended July 31, 2021 and 2020, respectively.
(Amounts in millions)Three Months Ended July 31,Six Months Ended July 31,
Sam’s Club net sales by merchandise category2021202020212020
Grocery and consumables$12,014 $10,715 $22,683 $21,076 
Fuel, tobacco and other categories2,816 2,068 5,115 4,081 
Home and apparel2,194 1,953 4,276 3,233 
Health and wellness956 931 1,897 1,832 
Technology, office and entertainment664 708 1,365 1,316 
Total$18,644 $16,375 $35,336 $31,538 
Of Sam's Club's total net sales, approximately $1.6 billion and $1.3 billion related to eCommerce for the three months ended July 31, 2021 and 2020, respectively, and approximately $3.2 billion and $2.3 billion related to eCommerce for the six months ended July 31, 2021 and 2020, respectively.
v3.21.2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jul. 31, 2021
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, 2021 ("fiscal 2021"). 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 based on a calendar year. In July 2021, the Company's majority-owned Flipkart subsidiary completed a $3.6 billion new equity funding, a portion of which was contributed by the Company. This transaction reduced the Company's ownership of Flipkart to approximately 75% in the third quarter of fiscal 2022.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Use of Estimates
Use of Estimates
The Condensed Consolidated Financial Statements have been prepared in conformity with GAAP. Those principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from those estimates.
Investments InvestmentsInvestments in equity and debt securities are recorded in other long-term assets in the Condensed Consolidated Balance Sheets. Changes in fair value of equity securities measured on a recurring basis are recognized in other gains and losses in the Condensed Consolidated Statements of Income. Refer to Note 5 for details. Equity investments without readily determinable fair values are carried at cost and are adjusted for any observable price changes or impairments within other gains and losses in the Condensed Consolidated Statements of Income. Investments in debt securities classified as trading are reported at fair value with interest income recorded in interest income in the Condensed Consolidated Statements of Income.
Indemnification Liabilities Indemnification LiabilitiesThe Company has provided certain indemnifications in connection with its divestitures and has recorded indemnification liabilities equal to the estimated fair value of the obligations upon inception.
v3.21.2
Net Income Per Common Share (Tables)
6 Months Ended
Jul. 31, 2021
Earnings Per Share [Abstract]  
Schedule of calculation of numerator and denominator in earnings per share
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net income per common share attributable to Walmart:
Three Months Ended July 31,Six Months Ended July 31,
(Amounts in millions, except per share data)2021202020212020
Numerator
Consolidated net income$4,364 $6,439 $7,175 $10,513 
Consolidated net (income) loss attributable to noncontrolling interest(88)37 (169)(47)
Consolidated net income attributable to Walmart$4,276 $6,476 $7,006 $10,466 
Denominator
Weighted-average common shares outstanding, basic2,799 2,832 2,807 2,832 
Dilutive impact of share-based awards13 16 13 16 
Weighted-average common shares outstanding, diluted2,812 2,848 2,820 2,848 
Net income per common share attributable to Walmart
Basic$1.53 $2.29 $2.50 $3.70 
Diluted1.52 2.27 2.48 3.67 
v3.21.2
Accumulated Other Comprehensive Loss (Tables)
6 Months Ended
Jul. 31, 2021
Other Comprehensive Income (Loss), Tax [Abstract]  
Composition of accumulated other comprehensive loss The following tables provide the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2021 and July 31, 2021, respectively, as well as for the three months ended April 30, 2020 and July 31, 2020, respectively:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2021$(10,772)$1,296 $(304)$(1,986)$(11,766)
Other comprehensive loss before reclassifications, net(225)(7)(26)(1)(259)
Reclassifications related to business dispositions, net(1)
3,258 (1,195)30 1,966 4,059 
Reclassifications to income, net— — 16 20 
Balances as of April 30, 2021$(7,739)$94 $(284)$(17)$(7,946)
Other comprehensive income (loss) before reclassifications, net123 — (193)(3)(73)
Reclassifications to income, net— — 38 43 
Balances as of July 31, 2021$(7,616)$94 $(439)$(15)$(7,976)
(1) Upon closing of the sale of the Company's operations in the U.K. and Japan during the first quarter of fiscal 2022, these amounts were released from accumulated other comprehensive loss, the majority of which was considered in the impairment evaluation when the individual disposal groups met the held for sale classification in fiscal 2021.
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2020$(11,827)$1,517 $(539)$(1,956)$(12,805)
Other comprehensive income (loss) before reclassifications, net(3,256)157 (295)(4)(3,398)
Reclassifications to income, net— — 16 19 35 
Balances as of April 30, 2020$(15,083)$1,674 $(818)$(1,941)$(16,168)
Other comprehensive income (loss) before reclassifications, net246 (191)303 (2)356 
Reclassifications to income, net— — 10 18 28 
Balances as of July 31, 2020$(14,837)$1,483 $(505)$(1,925)$(15,784)
v3.21.2
Short-term Borrowings and Long-term Debt (Tables)
6 Months Ended
Jul. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt
The following table provides the changes in the Company's long-term debt for the six months ended July 31, 2021:
(Amounts in millions)Long-term debt due within one yearLong-term debtTotal
Balances as of February 1, 2021$3,115 $41,194 $44,309 
Repayments of long-term debt(3,010)— (3,010)
Reclassifications of long-term debt1,511 (1,511)— 
Other(102)(101)
Balances as of July 31, 2021$1,617 $39,581 $41,198 
v3.21.2
Fair Value Measurements (Tables)
6 Months Ended
Jul. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements, Recurring and Nonrecurring The fair value of the Company's equity investments measured on a recurring basis is as follows:
(Amounts in millions)Fair Value as of July 31, 2021Fair Value as of January 31, 2021
Equity investments measured using Level 1 inputs$5,567 $6,517 
Equity investments measured using Level 2 inputs5,730 7,905 
Total$11,297 $14,422 
Notional amounts and fair values of derivatives As of July 31, 2021 and January 31, 2021, the notional amounts and fair values of these derivatives were as follows:
 July 31, 2021January 31, 2021
(Amounts in millions)Notional AmountFair ValueNotional AmountFair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges$3,250 $133 
(1)
$3,250 $166 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges— — 1,250 311 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges8,243 (616)
(2)
5,073 (394)
(2)
Total$11,493 $(483)$9,573 $83 
(1)Classified in other long-term assets within the Company's Condensed Consolidated Balance Sheets.
(2)Classified primarily in deferred income taxes and other within the Company's Condensed Consolidated Balance Sheets.
Carrying value and fair value of long-term debt The carrying value and fair value of the Company's long-term debt as of July 31, 2021 and January 31, 2021, are as follows: 
 July 31, 2021January 31, 2021
(Amounts in millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, including amounts due within one year$41,198 $50,373 $44,309 $54,240 
v3.21.2
Segments and Disaggregated Revenue (Tables)
6 Months Ended
Jul. 31, 2021
Disaggregation of Revenue [Line Items]  
Segment Net Sales
Net sales by segment are as follows:
 Three Months Ended July 31,Six Months Ended July 31,
(Amounts in millions)
2021202020212020
Net sales:
Walmart U.S.$98,192 $93,282 $191,359 $182,025 
Walmart International23,035 27,167 50,335 56,933 
Sam's Club18,644 16,375 35,336 31,538 
Net sales$139,871 $136,824 $277,030 $270,496 
Operating Income by Segment, Interest, Net, and Unrealized (Gains) and Losses
Operating income by segment, as well as operating loss for corporate and support, interest, net and other gains and losses are as follows:
 Three Months Ended July 31,Six Months Ended July 31,
(Amounts in millions)
2021202020212020
Operating income (loss):
Walmart U.S.$6,089 $5,057 $11,544 $9,359 
Walmart International861 812 2,055 1,618 
Sam's Club660 592 1,235 1,086 
Corporate and support(256)(402)(571)(780)
Operating income7,354 6,059 14,263 11,283 
Interest, net478 635 1,014 1,184 
Other (gains) and losses953 (3,222)3,482 (3,943)
Income before income taxes$5,923 $8,646 $9,767 $14,042 
Walmart U.S.  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
(Amounts in millions)Three Months Ended July 31,Six Months Ended July 31,
Walmart U.S. net sales by merchandise category2021202020212020
Grocery$54,649 $51,545 $106,040 $104,466 
General merchandise31,707 31,682 62,314 57,148 
Health and wellness10,480 9,154 20,450 18,754 
Other categories1,356 901 2,555 1,657 
Total$98,192 $93,282 $191,359 $182,025 
Walmart International  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
(Amounts in millions)Three Months Ended July 31,Six Months Ended July 31,
Walmart International net sales by market2021202020212020
Mexico and Central America$8,658 $7,208 $16,988 $15,704 
United Kingdom— 6,698 3,811 13,830 
Canada5,492 5,127 10,340 9,413 
China3,001 2,579 6,774 5,947 
Other5,884 5,555 12,422 12,039 
Total$23,035 $27,167 $50,335