WALMART INC., 10-Q filed on 12/2/2020
Quarterly Report
v3.20.2
Cover page - shares
9 Months Ended
Oct. 31, 2020
Nov. 30, 2020
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2020  
Document Transition Report false  
Entity File Number 001-6991  
Entity Registrant Name WALMART INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 71-0415188  
Entity Address, Address Line One 702 S.W. 8th Street  
Entity Address, City or Town Bentonville  
Entity Address, State or Province AR  
Entity Address, Postal Zip Code 72716  
City Area Code 479  
Local Phone Number 273-4000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,829,285,926
Entity Central Index Key 0000104169  
Current Fiscal Year End Date --01-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Common Stock, par value $0.10 per share    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol WMT  
Security Exchange Name NYSE  
1.900% Notes Due 2022    
Document Information [Line Items]    
Title of 12(b) Security 1.900% Notes Due 2022  
Trading Symbol WMT22  
Security Exchange Name NYSE  
2.550% Notes Due 2026    
Document Information [Line Items]    
Title of 12(b) Security 2.550% Notes Due 2026  
Trading Symbol WMT26  
Security Exchange Name NYSE  
v3.20.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Oct. 31, 2019
Oct. 31, 2020
Oct. 31, 2019
Revenues:        
Net sales $ 133,752 $ 126,981 $ 404,248 $ 379,318
Membership and other income 956 1,010 2,824 2,975
Total revenues 134,708 127,991 407,072 382,293
Costs and expenses:        
Cost of sales 100,339 95,900 305,054 286,857
Operating, selling, general and administrative expenses 28,591 27,373 84,957 80,190
Operating income 5,778 4,718 17,061 15,246
Interest:        
Debt 455 547 1,542 1,693
Finance lease 86 86 249 254
Interest income (25) (44) (91) (148)
Interest, net 516 589 1,700 1,799
Other (gains) and losses (1,853) (244) (5,796) (996)
Income before income taxes 7,115 4,373 21,157 14,443
Provision for income taxes 1,914 1,052 5,443 3,536
Consolidated net income 5,201 3,321 15,714 10,907
Consolidated net income attributable to noncontrolling interest (66) (33) (113) (167)
Consolidated net income attributable to Walmart $ 5,135 $ 3,288 $ 15,601 $ 10,740
Net income per common share:        
Basic net income per common share attributable to Walmart (in dollars per share) $ 1.81 $ 1.16 $ 5.51 $ 3.76
Diluted net income per common share attributable to Walmart (in dollars per share) $ 1.80 $ 1.15 $ 5.48 $ 3.74
Weighted-average common shares outstanding:        
Basic (shares) 2,833 2,843 2,832 2,855
Diluted (shares) 2,849 2,861 2,849 2,872
Dividends declared per common share (in dollars per share) $ 0 $ 0 $ 2.16 $ 2.12
v3.20.2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Oct. 31, 2019
Oct. 31, 2020
Oct. 31, 2019
Statement of Comprehensive Income [Abstract]        
Consolidated net income $ 5,201 $ 3,321 $ 15,714 $ 10,907
Consolidated net income attributable to noncontrolling interest (66) (33) (113) (167)
Consolidated net income attributable to Walmart 5,135 3,288 15,601 10,740
Other comprehensive income (loss), net of income taxes        
Currency translation and other 1,262 (1,188) (2,408) (762)
Net investment hedges (1) (113) (35) 135
Cash flow hedges 0 (12) 34 (301)
Minimum pension liability 16 8 47 13
Other comprehensive income (loss), net of income taxes 1,277 (1,305) (2,362) (915)
Other comprehensive (income) loss attributable to noncontrolling interest (109) 193 551 75
Other comprehensive income (loss) attributable to Walmart 1,168 (1,112) (1,811) (840)
Comprehensive income, net of income taxes 6,478 2,016 13,352 9,992
Comprehensive (income) loss attributable to noncontrolling interest (175) 160 438 (92)
Comprehensive income attributable to Walmart $ 6,303 $ 2,176 $ 13,790 $ 9,900
v3.20.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Oct. 31, 2020
Jan. 31, 2020
Oct. 31, 2019
Current assets:      
Cash and cash equivalents $ 14,325 $ 9,465 $ 8,606
Receivables, net 5,770 6,284 5,612
Inventories 51,842 44,435 51,546
Prepaid expenses and other 1,665 1,622 2,148
Total current assets 73,602 61,806 67,912
Property and equipment, net 102,232 105,208 104,326
Operating lease right-of-use assets 17,128 17,424 16,944
Finance lease right-of-use assets, net 4,929 4,417 4,155
Goodwill 30,236 31,073 30,716
Other long-term assets 22,736 16,567 15,777
Total assets 250,863 236,495 239,830
Current liabilities:      
Short-term borrowings 240 575 4,926
Accounts payable 54,152 46,973 49,750
Dividends payable 1,529 0 1,507
Accrued liabilities 24,995 22,296 20,973
Accrued income taxes 548 280 327
Long-term debt due within one year 4,358 5,362 4,093
Operating lease obligations due within one year 1,725 1,793 1,740
Finance lease obligations due within one year 574 511 468
Total current liabilities 88,121 77,790 83,784
Long-term debt 40,849 43,714 44,912
Long-term operating lease obligations 15,982 16,171 15,741
Long-term finance lease obligations 4,750 4,307 4,068
Deferred income taxes and other 13,657 12,961 13,018
Commitments and contingencies
Equity:      
Common stock 283 284 284
Capital in excess of par value 3,485 3,247 3,091
Retained earnings 92,279 83,943 80,656
Accumulated other comprehensive loss (14,616) (12,805) (12,382)
Total Walmart shareholders' equity 81,431 74,669 71,649
Noncontrolling interest 6,073 6,883 6,658
Total equity 87,504 81,552 78,307
Total liabilities and equity $ 250,863 $ 236,495 $ 239,830
v3.20.2
Condensed Consolidated Statement Of Shareholders' Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Capital in excess of par value
Retained earnings
Retained earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive loss
Total Walmart shareholders' equity
Total Walmart shareholders' equity
Cumulative Effect, Period of Adoption, Adjustment
Noncontrolling interest
Noncontrolling interest
Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Jan. 31, 2019     2,878                
Beginning balance 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 3,906       3,842     3,842   64  
Other comprehensive income (loss), net of income taxes 485           451 451   34  
Dividends declared (6,071)       (6,071)     (6,071)      
Purchase of Company stock (in shares)     (21)                
Purchase of Company stock, Value (2,087)   $ (2) (73) (2,012)     (2,087)      
Dividends declared to noncontrolling interests (481)                 (481)  
Other (in shares)     5                
Stockholders' Equity, Other (176)     (158) (2)     (160)   (16)  
Ending balance (in shares) at Apr. 30, 2019     2,862                
Ending balance at Apr. 30, 2019 74,910   $ 286 2,734 76,276   (11,091) 68,205   6,705  
Beginning balance (in shares) at Jan. 31, 2019     2,878                
Beginning balance 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 10,907                    
Other comprehensive income (loss), net of income taxes $ (915)                    
Dividends declared per common share (in dollars per share) $ 2.12                    
Ending balance (in shares) at Oct. 31, 2019     2,839                
Ending balance at Oct. 31, 2019 $ 78,307   $ 284 3,091 80,656   (12,382) 71,649   6,658  
Beginning balance (in shares) at Apr. 30, 2019     2,862                
Beginning balance at Apr. 30, 2019 74,910   $ 286 2,734 76,276   (11,091) 68,205   6,705  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Consolidated net income 3,680       3,610     3,610   70  
Other comprehensive income (loss), net of income taxes (95)           (179) (179)   84  
Dividends declared 15       15     15      
Purchase of Company stock (in shares)     (15)                
Purchase of Company stock, Value (1,555)   $ (2) (54) (1,499)     (1,555)      
Dividends declared to noncontrolling interests 6                 6  
Stockholders' Equity, Other 170   $ 1 200 30     231   (61)  
Ending balance (in shares) at Jul. 31, 2019     2,847                
Ending balance at Jul. 31, 2019 77,131   $ 285 2,880 78,432   (11,270) 70,327   6,804  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Consolidated net income 3,321       3,288     3,288   33  
Other comprehensive income (loss), net of income taxes $ (1,305)           (1,112) (1,112)   (193)  
Dividends declared per common share (in dollars per share) $ 0                    
Dividends declared $ 5       5     5      
Purchase of Company stock (in shares)     (10)                
Purchase of Company stock, Value (1,108)   $ (1) (39) (1,068)     (1,108)      
Dividends declared to noncontrolling interests 3                 3  
Other (in shares)     2                
Stockholders' Equity, Other 260     250 (1)     249   11  
Ending balance (in shares) at Oct. 31, 2019     2,839                
Ending balance at Oct. 31, 2019 78,307   $ 284 3,091 80,656   (12,382) 71,649   6,658  
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                
Stockholders' Equity, 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 15,714                    
Other comprehensive income (loss), net of income taxes $ (2,362)                    
Dividends declared per common share (in dollars per share) $ 2.16                    
Ending balance (in shares) at Oct. 31, 2020     2,831                
Ending balance at Oct. 31, 2020 $ 87,504   $ 283 3,485 92,279   (14,616) 81,431   6,073  
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                
Stockholders' Equity, 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  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Consolidated net income 5,201       5,135     5,135   66  
Other comprehensive income (loss), net of income taxes $ 1,277           1,168 1,168   109  
Dividends declared per common share (in dollars per share) $ 0                    
Purchase of Company stock (in shares)     (4)                
Purchase of Company stock, Value $ (486)     (17) (469)     (486)      
Dividends declared to noncontrolling interests (8)                 (8)  
Other (in shares)     1                
Stockholders' Equity, Other 323     305 (1)     304   19  
Ending balance (in shares) at Oct. 31, 2020     2,831                
Ending balance at Oct. 31, 2020 $ 87,504   $ 283 $ 3,485 $ 92,279   $ (14,616) $ 81,431   $ 6,073  
v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
9 Months Ended
Oct. 31, 2020
Oct. 31, 2019
Cash flows from operating activities:    
Consolidated net income $ 15,714 $ 10,907
Adjustments to reconcile consolidated net income to net cash provided by operating activities:    
Depreciation and amortization 8,333 8,159
Unrealized (gains) and losses (6,883) (911)
Losses and (gains) on disposal of business operations 1,028 (1)
Deferred income taxes 1,246 574
Other operating activities 930 938
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:    
Receivables, net 165 661
Inventories (8,260) (7,558)
Accounts payable 8,553 2,925
Accrued liabilities 1,796 (1,107)
Accrued income taxes 258 (48)
Net cash provided by operating activities 22,880 14,539
Cash flows from investing activities:    
Payments for property and equipment (6,438) (7,765)
Proceeds from the disposal of property and equipment 99 218
Proceeds from the disposal of certain operations 12 833
Payments for business acquisitions, net of cash acquired (180) (56)
Other investing activities 0 485
Net cash used in investing activities (6,507) (6,285)
Cash flows from financing activities:    
Net change in short-term borrowings (301) (282)
Proceeds from issuance of long-term debt 0 5,492
Repayments of long-term debt (4,132) (1,907)
Dividends paid (4,582) (4,545)
Purchase of Company stock (1,186) (4,829)
Dividends paid to noncontrolling interest (76) (407)
Other financing activities (1,063) (735)
Net cash used in financing activities (11,340) (7,213)
Effect of exchange rates on cash, cash equivalents and restricted cash (170) (166)
Net increase in cash, cash equivalents and restricted cash 4,863 875
Cash, cash equivalents and restricted cash at beginning of year 9,515 7,756
Cash, cash equivalents and restricted cash at end of period $ 14,378 $ 8,631
v3.20.2
Summary of Significant Accounting Policies (Notes)
9 Months Ended
Oct. 31, 2020
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, 2020 ("fiscal 2020"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of October related to the consolidated operations using a lag that materially affected the Condensed Consolidated Financial Statements.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with GAAP. 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 materially from those estimates.
Receivables
In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“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 Condensed Consolidated Financial Statements.
Receivables are stated at their carrying values, net of a reserve for credit losses, 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.
v3.20.2
Net Income Per Common Share (Notes)
9 Months Ended
Oct. 31, 2020
Earnings Per Share [Abstract]  
Net Income Per Common Share Net Income Per Common Share
Basic net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period. Diluted net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did not have significant share-based awards outstanding that were anti-dilutive and not included in the calculation of diluted net income per common share attributable to Walmart for the three and nine months ended October 31, 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:
Three Months Ended October 31,Nine Months Ended October 31,
(Amounts in millions, except per share data)2020201920202019
Numerator
Consolidated net income$5,201 $3,321 $15,714 $10,907 
Consolidated net income attributable to noncontrolling interest(66)(33)(113)(167)
Consolidated net income attributable to Walmart$5,135 $3,288 $15,601 $10,740 
Denominator
Weighted-average common shares outstanding, basic2,833 2,843 2,832 2,855 
Dilutive impact of share-based awards16 18 17 17 
Weighted-average common shares outstanding, diluted2,849 2,861 2,849 2,872 
Net income per common share attributable to Walmart
Basic$1.81 $1.16 $5.51 $3.76 
Diluted1.80 1.15 5.48 3.74 
v3.20.2
Accumulated Other Comprehensive Loss (Notes)
9 Months Ended
Oct. 31, 2020
Other Comprehensive Income (Loss), Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2020, July 31, 2020 and October 31, 2020:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2020$(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)$(15,784)
Other comprehensive income (loss) before reclassifications, net1,153 (1)(13)(3)1,136 
Reclassifications to income, net— — 13 19 32 
Balances as of October 31, 2020$(13,684)$1,482 $(505)$(1,909)$(14,616)
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2019, July 31, 2019 and October 31, 2019:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2019$(12,085)$1,395 $(140)$(712)$(11,542)
Other comprehensive income (loss) before reclassifications, net496 108 (145)(7)452 
Reclassifications to income, net(23)— 14 (1)
Balances as of April 30, 2019$(11,612)$1,503 $(271)$(711)$(11,091)
Other comprehensive income (loss) before reclassifications, net(165)140 (172)(5)(202)
Reclassifications to income, net— — 14 23 
Balances as of July 31, 2019$(11,777)$1,643 $(429)$(707)$(11,270)
Other comprehensive income (loss) before reclassifications, net(995)(113)(12)(1,114)
Reclassifications to income, net— — — 
Balances as of October 31, 2019$(12,772)$1,530 $(441)$(699)$(12,382)
Amounts reclassified from accumulated other comprehensive loss to net income for derivative instruments are recorded in interest, net, in the Company's Condensed Consolidated Statements of Income. Amounts reclassified from accumulated other comprehensive loss to net income for the minimum pension liability, as well as the cumulative translation resulting from a disposition of a business, are recorded in other gains and losses in the Company's Condensed Consolidated Statements of Income. Amounts related to the Company's derivatives expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months are not significant.
v3.20.2
Short-term Borrowings and Long-term Debt (Notes)
9 Months Ended
Oct. 31, 2020
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 2020, the Company renewed and extended its existing 364-day revolving credit facility of $10.0 billion. In total, the Company had committed lines of credit in the U.S. of $15.0 billion at October 31, 2020 and January 31, 2020, all undrawn.
The following table provides the changes in the Company's long-term debt for the nine months ended October 31, 2020:
(Amounts in millions)Long-term debt due within one yearLong-term debtTotal
Balances as of February 1, 2020$5,362 $43,714 $49,076 
Repayments of long-term debt(4,132)— (4,132)
Reclassifications of long-term debt3,126 (3,126)— 
Other261 263 
Balances as of October 31, 2020$4,358 $40,849 $45,207 
v3.20.2
Fair Value Measurements (Notes)
9 Months Ended
Oct. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
Level 1: observable inputs such as quoted prices in active markets;
Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.
The Company measures the fair value of equity investments on a recurring basis in the accompanying Condensed Consolidated Balance Sheets.
The fair value of the Company's equity investments recorded in other long-term assets are as follows:
(Amounts in millions)Fair Value as of October 31, 2020Fair Value as of January 31, 2020
Equity investments measured using Level 1 inputs$5,987 $2,715 
Equity investments measured using Level 2 inputs6,782 2,723 
Total$12,769 $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 October 31, 2020 and January 31, 2020, the notional amounts and fair values of these derivatives were as follows:
 October 31, 2020January 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 $177 
(1)
$4,000 $97 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges3,500 446 
(1)
3,750 455 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges4,206 (722)
(2)
4,067 (696)
(2)
Total$10,956 $(99)$11,817 $(144)
(1)Classified in Other long-term assets within the Company's Condensed Consolidated Balance Sheets.
(2)Classified in Deferred income taxes and other within the Company's Condensed 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. The Company did not have any material assets or liabilities subject to nonrecurring fair value measurements as of October 31, 2020. Refer to Note 6 for additional information regarding the sale of Walmart Argentina.
Other Fair Value Disclosures
The Company records cash and cash equivalents, restricted cash, and short-term borrowings at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities.
The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the Company's current incremental borrowing rate for similar types of borrowing arrangements. The carrying value and fair value of the Company's long-term debt as of October 31, 2020 and January 31, 2020, are as follows: 
 October 31, 2020January 31, 2020
(Amounts in millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, including amounts due within one year$45,207 $55,257 $49,076 $57,769 
v3.20.2
Divestitures
9 Months Ended
Oct. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures Divestitures
During fiscal 2021, the Company announced the following actions related to the Company's Walmart International segment.
Asda
In October 2020, the Company entered into a definitive agreement and announced the proposed divestiture of Asda Group Limited, a wholly-owned subsidiary of the Company ("Asda”), for an enterprise value of £6.8 billion, or approximately $9.1 billion based on current exchange rates. Due to uncertainty of the macro-economic environment and a complex regulatory review process, the outcome of which is uncertain, the held for sale criteria for the disposal group was not met as of October 31, 2020, and accordingly no impacts have been reflected in the Condensed Consolidated Financial Statements.
Walmart Argentina
In November 2020, the Company completed the sale of Walmart Argentina and classified the disposal group as held for sale as of October 31, 2020 in the Condensed Consolidated Balance Sheet. As a result, the Company recorded a pre-tax loss of $1.0 billion during the three and nine months ended October 31, 2020 in other gains and losses in its Condensed Consolidated Statement of Income primarily due to the impact of cumulative translation losses on the carrying value of the disposal group.
Seiyu
In November 2020, the Company entered into a definitive agreement to sell a majority stake in Seiyu, the Company's retail business in Japan, for an enterprise value of ¥172.5 billion, or approximately $1.7 billion based on current exchange rates. As the disposal group met the held for sale criteria subsequent to October 31, 2020, the Company will recognize a non-cash loss of approximately $2.0 billion, after tax, in the fourth quarter of fiscal 2021. This estimate may fluctuate based on currency exchange rates and customary purchase price adjustments up to the closing date of the transaction, which is expected to occur in the first quarter of fiscal 2022 and is subject to regulatory approvals.
v3.20.2
Contingencies (Notes)
9 Months Ended
Oct. 31, 2020
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.
ASDA Equal Value Claims
ASDA Stores Ltd., an Asda subsidiary, is a defendant in over 40,000 equal value ("Equal Value") claims that began in 2008 and are proceeding before an Employment Tribunal in Manchester (the "Employment Tribunal") in the United Kingdom ("U.K.") on behalf of current and former Asda store employees, and further claims may be asserted in the future. The claimants allege that the work performed by employees in Asda's retail stores is of equal value in terms of, among other things, the demands of their jobs compared to that of employees working in Asda's warehouse and distribution facilities, and that the difference in pay between these job positions disparately impacts women because more women work in retail stores while more men work in warehouses and distribution facilities, and that the pay difference is not objectively justified. The claimants are requesting differential back pay based on higher wage rates in the warehouse and distribution facilities and higher wage rates on a prospective basis.
In October 2016, following a preliminary hearing, the Employment Tribunal ruled that claimants could compare their positions in Asda's retail stores with those of employees in Asda's warehouse and distribution facilities. Asda appealed the ruling and the oral argument was held before the Supreme Court of the United Kingdom in July 2020. The Company is awaiting a decision.
Notwithstanding the appeal, claimants are proceeding in the next phase of their claims. That phase will determine whether the work performed by the claimants is of equal value to the work performed by employees in Asda's warehouse and distribution facilities.
At present, the Company cannot predict the number of such claims that may be filed, and cannot reasonably estimate any loss or range of loss that may arise from these proceedings. Accordingly, the Company can provide no assurance as to the scope and outcomes of these matters and no assurance as to whether its business, financial position, results of operations or cash flows will not be materially adversely affected. The Company believes it has substantial factual and legal defenses to these claims, and intends to defend the claims vigorously.
Prescription Opiate Litigation and Other Matters
In December 2017, the U.S. Judicial Panel on Multidistrict Litigation consolidated numerous lawsuits filed against a wide array of defendants by various plaintiffs, including counties, cities, healthcare providers, Native American tribes, individuals, and third-party payors, asserting claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation entitled In re National Prescription Opiate Litigation (MDL No. 2804), 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 against the U.S. Department of Justice 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 Company cannot reasonably estimate any loss or range of loss that may arise from these matters. Accordingly, the Company can provide no assurance as to the scope and outcome of these matters and no assurance as to whether its business, financial position, results of operations or cash flows will not be materially adversely affected.
v3.20.2
Segments and Disaggregated Revenue (Notes)
9 Months Ended
Oct. 31, 2020
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, Argentina, Canada, Central America, Chile, China, India, Japan, Mexico, and the United Kingdom. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services.
The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce and omni-channel initiatives. The Walmart International segment consists of the Company's operations outside of the U.S., as well as eCommerce and omni-channel initiatives. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments.
The Company measures the results of its segments using, among other measures, each segment's net sales and operating income, which includes certain corporate overhead allocations. From time to time, the Company revises the measurement of each segment's operating income, including any corporate overhead allocations, as determined by the information regularly reviewed by its CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation. Beginning with the first quarter in fiscal 2021, the Company revised its definition of eCommerce net sales to include certain pharmacy transactions and, accordingly, revised prior period amounts to maintain comparability.
Net sales by segment are as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
(Amounts in millions)
2020201920202019
Net sales:
Walmart U.S.$88,353 $83,189 $270,378 $248,733 
Walmart International29,554 29,167 86,487 87,081 
Sam's Club15,845 14,625 47,383 43,504 
Net sales$133,752 $126,981 $404,248 $379,318 
Operating income by segment, as well as operating loss for corporate and support, interest, net and other gains and losses are as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
(Amounts in millions)
2020201920202019
Operating income (loss):
Walmart U.S.$4,589 $4,176 $13,948 $12,977 
Walmart International1,078 634 2,696 2,265 
Sam's Club431 327 1,517 1,258 
Corporate and support(320)(419)(1,100)(1,254)
Operating income5,778 4,718 17,061 15,246 
Interest, net516 589 1,700 1,799 
Other (gains) and losses(1,853)(244)(5,796)(996)
Income before income taxes$7,115 $4,373 $21,157 $14,443 
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 October 31,Nine Months Ended October 31,
Walmart U.S. net sales by merchandise category2020201920202019
Grocery$50,683 $48,117 $155,149 $142,511 
General merchandise26,927 24,964 84,075 76,602 
Health and wellness9,806 9,225 28,560 27,113 
Other categories937 883 2,594 2,507 
Total$88,353 $83,189 $270,378 $248,733 
Of Walmart U.S.'s total net sales, approximately $10.3 billion and $5.7 billion related to eCommerce for the three months ended October 31, 2020 and 2019, respectively. Approximately $29.1 billion and $15.8 billion related to eCommerce for the nine months ended October 31, 2020 and 2019, respectively.
(Amounts in millions)Three Months Ended October 31,Nine Months Ended October 31,
Walmart International net sales by market2020201920202019
Mexico and Central America$7,429 $7,913 $23,133 $23,765 
United Kingdom7,249 6,961 21,079 21,355 
Canada4,969 4,608 14,383 13,366 
China2,787 2,718 8,735 8,209 
Other7,120 6,967 19,157 20,386 
Total$29,554 $29,167 $86,487 $87,081 
Of Walmart International's total net sales, approximately $4.3 billion and $2.9 billion related to eCommerce for the three months ended October 31, 2020 and 2019, respectively. Approximately $10.5 billion and $7.9 billion related to eCommerce for the nine months ended October 31, 2020 and 2019, respectively.
(Amounts in millions)Three Months Ended October 31,Nine Months Ended October 31,
Sam’s Club net sales by merchandise category2020201920202019
Grocery and consumables$10,450 $8,900 $31,526 $26,151 
Fuel, tobacco and other categories1,942 2,646 6,023 8,127 
Home and apparel1,693 1,532 4,926 4,725 
Health and wellness1,017 858 2,849 2,527 
Technology, office and entertainment743 689 2,059 1,974 
Total$15,845 $14,625 $47,383 $43,504 
Of Sam's Club's total net sales, approximately $1.3 billion and $0.9 billion related to eCommerce for the three months ended October 31, 2020 and 2019, respectively. Approximately $3.7 billion and $2.6 billion related to eCommerce for the nine months ended October 31, 2020 and 2019, respectively.
v3.20.2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies)
9 Months Ended
Oct. 31, 2020
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, 2020 ("fiscal 2020"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of October related to the consolidated operations using a lag that materially affected the Condensed Consolidated Financial Statements.
The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume and operating income have occurred in the fiscal quarter ending January 31.
Use of Estimates
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with GAAP. 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 materially from those estimates.
New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“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 Condensed Consolidated Financial Statements.
Receivables Receivables are stated at their carrying values, net of a reserve for credit losses, 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.
v3.20.2
Net Income Per Common Share (Tables)
9 Months Ended
Oct. 31, 2020
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 October 31,Nine Months Ended October 31,
(Amounts in millions, except per share data)2020201920202019
Numerator
Consolidated net income$5,201 $3,321 $15,714 $10,907 
Consolidated net income attributable to noncontrolling interest(66)(33)(113)(167)
Consolidated net income attributable to Walmart$5,135 $3,288 $15,601 $10,740 
Denominator
Weighted-average common shares outstanding, basic2,833 2,843 2,832 2,855 
Dilutive impact of share-based awards16 18 17 17 
Weighted-average common shares outstanding, diluted2,849 2,861 2,849 2,872 
Net income per common share attributable to Walmart
Basic$1.81 $1.16 $5.51 $3.76 
Diluted1.80 1.15 5.48 3.74 
v3.20.2
Accumulated Other Comprehensive Loss (Tables)
9 Months Ended
Oct. 31, 2020
Other Comprehensive Income (Loss), Tax [Abstract]  
Composition of accumulated other comprehensive loss
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2020, July 31, 2020 and October 31, 2020:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2020$(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)$(15,784)
Other comprehensive income (loss) before reclassifications, net1,153 (1)(13)(3)1,136 
Reclassifications to income, net— — 13 19 32 
Balances as of October 31, 2020$(13,684)$1,482 $(505)$(1,909)$(14,616)
The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2019, July 31, 2019 and October 31, 2019:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2019$(12,085)$1,395 $(140)$(712)$(11,542)
Other comprehensive income (loss) before reclassifications, net496 108 (145)(7)452 
Reclassifications to income, net(23)— 14 (1)
Balances as of April 30, 2019$(11,612)$1,503 $(271)$(711)$(11,091)
Other comprehensive income (loss) before reclassifications, net(165)140 (172)(5)(202)
Reclassifications to income, net— — 14 23 
Balances as of July 31, 2019$(11,777)$1,643 $(429)$(707)$(11,270)
Other comprehensive income (loss) before reclassifications, net(995)(113)(12)(1,114)
Reclassifications to income, net— — — 
Balances as of October 31, 2019$(12,772)$1,530 $(441)$(699)$(12,382)
v3.20.2
Short-term Borrowings and Long-term Debt (Tables)
9 Months Ended
Oct. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]
The following table provides the changes in the Company's long-term debt for the nine months ended October 31, 2020:
(Amounts in millions)Long-term debt due within one yearLong-term debtTotal
Balances as of February 1, 2020$5,362 $43,714 $49,076 
Repayments of long-term debt(4,132)— (4,132)
Reclassifications of long-term debt3,126 (3,126)— 
Other261 263 
Balances as of October 31, 2020$4,358 $40,849 $45,207 
v3.20.2
Fair Value Measurements (Tables)
9 Months Ended
Oct. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements, Recurring and Nonrecurring
The fair value of the Company's equity investments recorded in other long-term assets are as follows:
(Amounts in millions)Fair Value as of October 31, 2020Fair Value as of January 31, 2020
Equity investments measured using Level 1 inputs$5,987 $2,715 
Equity investments measured using Level 2 inputs6,782 2,723 
Total$12,769 $5,438 
Notional amounts and fair values of derivatives As of October 31, 2020 and January 31, 2020, the notional amounts and fair values of these derivatives were as follows:
 October 31, 2020January 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 $177 
(1)
$4,000 $97 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges3,500 446 
(1)
3,750 455 
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges4,206 (722)
(2)
4,067 (696)
(2)
Total$10,956 $(99)$11,817 $(144)
(1)Classified in Other long-term assets within the Company's Condensed Consolidated Balance Sheets.
(2)Classified 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 October 31, 2020 and January 31, 2020, are as follows: 
 October 31, 2020January 31, 2020
(Amounts in millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, including amounts due within one year$45,207 $55,257 $49,076 $57,769 
v3.20.2
Segments and Disaggregated Revenue (Tables)
9 Months Ended
Oct. 31, 2020
Disaggregation of Revenue [Line Items]  
Segment Net Sales
Net sales by segment are as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
(Amounts in millions)
2020201920202019
Net sales:
Walmart U.S.$88,353 $83,189 $270,378 $248,733 
Walmart International29,554 29,167 86,487 87,081 
Sam's Club15,845 14,625 47,383 43,504 
Net sales$133,752 $126,981 $404,248 $379,318 
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 October 31,Nine Months Ended October 31,
(Amounts in millions)
2020201920202019
Operating income (loss):
Walmart U.S.$4,589 $4,176 $13,948 $12,977 
Walmart International1,078 634 2,696 2,265 
Sam's Club431 327 1,517 1,258 
Corporate and support(320)(419)(1,100)(1,254)
Operating income5,778 4,718 17,061 15,246 
Interest, net516 589 1,700 1,799 
Other (gains) and losses(1,853)(244)(5,796)(996)
Income before income taxes$7,115 $4,373 $21,157 $14,443 
Walmart U.S.  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
(Amounts in millions)Three Months Ended October 31,Nine Months Ended October 31,
Walmart U.S. net sales by merchandise category2020201920202019
Grocery$50,683 $48,117 $155,149 $142,511 
General merchandise26,927 24,964 84,075 76,602 
Health and wellness9,806 9,225 28,560 27,113 
Other categories937 883 2,594 2,507 
Total$88,353 $83,189 $270,378 $248,733 
Walmart International  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
(Amounts in millions)Three Months Ended October 31,Nine Months Ended October 31,
Walmart International net sales by market2020201920202019
Mexico and Central America$7,429 $7,913 $23,133 $23,765 
United Kingdom7,249 6,961 21,079 21,355 
Canada4,969 4,608 14,383 13,366 
China2,787 2,718 8,735 8,209 
Other7,120 6,967 19,157 20,386 
Total$29,554 $29,167 $86,487 $87,081 
Sam's Club  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
(Amounts in millions)Three Months Ended October 31,Nine Months Ended October 31,
Sam’s Club net sales by merchandise category2020201920202019
Grocery and consumables$10,450 $8,900 $31,526 $