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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the quarterly period ended April 30, 2021.
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the transition period from              to             .
Commission File Number 001-6991
wmt-20210430_g1.jpg
WALMART INC.
(Exact name of registrant as specified in its charter)
Delaware71-0415188
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
702 S.W. 8th Street72716
BentonvilleAR
(Address of principal executive offices)(Zip Code)

Registrant's telephone number, including area code: (479) 273-4000
Former name, former address and former fiscal year, if changed since last report: N/A
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.10 per shareWMTNew York Stock Exchange
1.900% Notes Due 2022WMT22New York Stock Exchange
2.550% Notes Due 2026WMT26New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer   Accelerated Filer 
Non-Accelerated Filer   Smaller Reporting Company 
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No  
The registrant had 2,802,145,927 shares of common stock outstanding as of June 2, 2021.


Table of Contents
Walmart Inc.
Form 10-Q
For the Quarterly Period Ended April 30, 2021



Table of Contents
Page


2

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1.Financial Statements
Walmart Inc.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended April 30,
(Amounts in millions, except per share data)20212020
Revenues:
Net sales$137,159 $133,672 
Membership and other income1,151 950 
Total revenues138,310 134,622 
Costs and expenses:
Cost of sales103,272 102,026 
Operating, selling, general and administrative expenses28,129 27,372 
Operating income6,909 5,224 
Interest:
Debt481 510 
Finance lease85 82 
Interest income(30)(43)
Interest, net536 549 
Other (gains) and losses2,529 (721)
Income before income taxes3,844 5,396 
Provision for income taxes1,033 1,322 
Consolidated net income2,811 4,074 
Consolidated net income attributable to noncontrolling interest(81)(84)
Consolidated net income attributable to Walmart$2,730 $3,990 
Net income per common share:
Basic net income per common share attributable to Walmart$0.97 $1.41 
Diluted net income per common share attributable to Walmart0.97 1.40 
Weighted-average common shares outstanding:
Basic2,815 2,831 
Diluted2,829 2,849 
Dividends declared per common share$2.20 $2.16 
See accompanying notes.
3

Table of Contents
Walmart Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 Three Months Ended April 30,
(Amounts in millions)20212020
Consolidated net income$2,811 $4,074 
Consolidated net income attributable to noncontrolling interest(81)(84)
Consolidated net income attributable to Walmart2,730 3,990 
Other comprehensive income (loss), net of income taxes
Currency translation and other2,959 (3,968)
Net investment hedges(1,202)157 
Cash flow hedges20 (279)
Minimum pension liability1,969 15 
Other comprehensive income (loss), net of income taxes3,746 (4,075)
Other comprehensive loss attributable to noncontrolling interest74 712 
Other comprehensive income (loss) attributable to Walmart3,820 (3,363)
Comprehensive income (loss), net of income taxes6,557 (1)
Comprehensive (income) loss attributable to noncontrolling interest(7)628 
Comprehensive income attributable to Walmart$6,550 $627 
See accompanying notes.
4

Table of Contents
Walmart Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
April 30,January 31,April 30,
(Amounts in millions)202120212020
ASSETS
Current assets:
Cash and cash equivalents$22,846 $17,741 $14,930 
Receivables, net5,797 6,516 5,029 
Inventories46,383 44,949 41,217 
Prepaid expenses and other1,565 20,861 2,152 
Total current assets76,591 90,067 63,328 
Property and equipment, net90,996 92,201 101,872 
Operating lease right-of-use assets13,650 13,642 16,895 
Finance lease right-of-use assets, net3,979 4,005 4,611 
Goodwill28,872 28,983 29,416 
Other long-term assets22,493 23,598 16,770 
Total assets$236,581 $252,496 $232,892 
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings$362 $224 $4,048 
Accounts payable48,151 49,141 44,096 
Dividends payable4,651  4,588 
Accrued liabilities21,371 37,966 20,377 
Accrued income taxes851 242 1,303 
Long-term debt due within one year3,500 3,115 5,983 
Operating lease obligations due within one year1,448 1,466 1,729 
Finance lease obligations due within one year507 491 523 
Total current liabilities80,841 92,645 82,647 
Long-term debt40,273 41,194 43,006 
Long-term operating lease obligations12,930 12,909 15,669 
Long-term finance lease obligations3,802 3,847 4,474 
Deferred income taxes and other14,143 14,370 12,986 
Commitments and contingencies
Equity:
Common stock280 282 284 
Capital in excess of par value3,424 3,646 2,983 
Retained earnings82,577 88,763 81,141 
Accumulated other comprehensive loss(7,946)(11,766)(16,168)
Total Walmart shareholders' equity78,335 80,925 68,240 
Noncontrolling interest6,257 6,606 5,870 
Total equity84,592 87,531 74,110 
Total liabilities and equity$236,581 $252,496 $232,892 
See accompanying notes.
5

Table of Contents
Walmart Inc.
Condensed Consolidated Statements of Shareholders' Equity
(Unaudited)
AccumulatedTotal
Capital inOtherWalmart
(Amounts in millions)Common StockExcess ofRetainedComprehensiveShareholders'NoncontrollingTotal
SharesAmountPar ValueEarningsLossEquityInterestEquity
Balances as of February 1, 20212,821 $282 $3,646 $88,763 $(11,766)$80,925 $6,606 $87,531 
Consolidated net income— — — 2,730 — 2,730 81 2,811 
Other comprehensive income (loss), net of income taxes— — — — 3,820 3,820 (74)3,746 
Dividends declared ($2.20 per share)
— — — (6,200)— (6,200)— (6,200)
Purchase of Company stock(21)(2)(112)(2,718)— (2,832)— (2,832)
Dividends declared to noncontrolling interest— — — — — — (408)(408)
Other5 — (110)2 — (108)52 (56)
Balances as of April 30, 20212,805 $280 $3,424 $82,577 $(7,946)$78,335 $6,257 $84,592 
See accompanying notes.
AccumulatedTotal
Capital inOtherWalmart
(Amounts in millions)Common StockExcess ofRetainedComprehensiveShareholders'NoncontrollingTotal
SharesAmountPar ValueEarningsLossEquityInterestEquity
Balances as of February 1, 20202,832 $284 $3,247 $83,943 $(12,805)$74,669 $6,883 $81,552 
Consolidated net income— — — 3,990 — 3,990 84 4,074 
Other comprehensive loss, net of income taxes— — — — (3,363)(3,363)(712)(4,075)
Dividends declared ($2.16 per share)
— — — (6,117)— (6,117)— (6,117)
Purchase of Company stock(6)(1)(26)(666)— (693)— (693)
Dividends declared to noncontrolling interest— — — — — — (359)(359)
Other6 1 (238)(9)— (246)(26)(272)
Balances as of April 30, 20202,832 $284 $2,983 $81,141 $(16,168)$68,240 $5,870 $74,110 
See accompanying notes.


6

Table of Contents
Walmart Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended April 30,
(Amounts in millions)20212020
Cash flows from operating activities:
Consolidated net income$2,811 $4,074 
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization2,661 2,791 
Net unrealized and realized (gains) and losses2,077 (783)
Losses on disposal of business operations433  
Deferred income taxes(155)84 
Other operating activities270 (51)
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:
Receivables, net828 924 
Inventories(1,487)2,221 
Accounts payable(1,004)(1,183)
Accrued liabilities(4,004)(2,109)
Accrued income taxes428 1,049 
Net cash provided by operating activities2,858 7,017 
Cash flows from investing activities:
Payments for property and equipment(2,214)(1,752)
Proceeds from the disposal of property and equipment72 60 
Proceeds from disposal of certain operations, net of divested cash7,935  
Payments for business acquisitions, net of cash acquired (10)
Other investing activities57 6 
Net cash provided by (used in) investing activities5,850 (1,696)
Cash flows from financing activities:
Net change in short-term borrowings138 3,542 
Repayments of long-term debt(510) 
Dividends paid(1,549)(1,529)
Purchase of Company stock(2,809)(723)
Other financing activities(669)(725)
Net cash (used in) provided by financing activities(5,399)565 
Effect of exchange rates on cash, cash equivalents and restricted cash(51)(415)
Net increase in cash, cash equivalents and restricted cash3,258 5,471 
Change in cash and cash equivalents classified as held for sale1,848  
Cash, cash equivalents and restricted cash at beginning of year17,788 9,514 
Cash, cash equivalents and restricted cash at end of period$22,894 $14,985 
See accompanying notes.
7

Table of Contents
Walmart Inc.
Notes to Condensed Consolidated Financial Statements
Note 1. 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 and based on a calendar year. There were no significant intervening events during the month of April 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 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 April 30, 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 April 30, 2021 and January 31, 2021, the Company had $1.3 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 $4.2 billion, based on exchange rates as of April 30, 2021.
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Note 2. 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 months ended April 30, 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 April 30,
(Amounts in millions, except per share data)20212020
Numerator
Consolidated net income$2,811 $4,074 
Consolidated net income attributable to noncontrolling interest(81)(84)
Consolidated net income attributable to Walmart$2,730 $3,990 
Denominator
Weighted-average common shares outstanding, basic2,815 2,831 
Dilutive impact of share-based awards14 18 
Weighted-average common shares outstanding, diluted2,829 2,849 
Net income per common share attributable to Walmart
Basic$0.97 $1.41 
Diluted0.97 1.40 
Note 3. Accumulated Other Comprehensive Loss
Amounts reclassified from accumulated other comprehensive loss for derivative instruments are generally recorded in interest, net, in the Company's Condensed Consolidated Statements of Income. Amounts for the minimum pension liability, as well as the cumulative translation and any related net investment hedge impacts resulting from a disposition of a business, are recorded in other gains and losses in the Company's Condensed Consolidated Statements of Income. The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 2021:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2021$(10,772)$1,296 $(304)$(1,986)$(11,766)
Other comprehensive loss before reclassifications, net(225)(7)(26)(1)(259)
Reclassifications related to business dispositions, net(1)
3,258 (1,195)30 1,966 4,059 
Reclassifications to income, net  16 4 20 
Balances as of April 30, 2021$(7,739)$94 $(284)$(17)$(7,946)
(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.

The following table provides the changes in the composition of total accumulated other comprehensive loss for the three months ended April 30, 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)

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Note 4. 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 April 30, 2021 and January 31, 2021, all undrawn.
The following table provides the changes in the Company's long-term debt for the three months ended April 30, 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(510) (510)
Reclassifications of long-term debt894 (894) 
Other1 (27)(26)
Balances as of April 30, 2021$3,500 $40,273 $43,773 
Note 5. 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 April 30, 2021Fair Value as of January 31, 2021
Equity investments measured using Level 1 inputs$6,050 $6,517 
Equity investments measured using Level 2 inputs6,217 7,905 
Total$12,267 $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 April 30, 2021 and January 31, 2021, the notional amounts and fair values of these derivatives were as follows:
 April 30, 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 $140 
(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 hedges8,324 (405)
(2)
5,073 (394)
(2)
Total$11,574 $(265)$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.
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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 during the three months ended April 30, 2021 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 April 30, 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 April 30, 2021 and January 31, 2021, are as follows: 
 April 30, 2021January 31, 2021
(Amounts in millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, including amounts due within one year$43,773 $51,822 $44,309 $54,240 
Note 6. 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 $86.4 billion as of April 30, 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.
Note 7. 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.
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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 and the Company is appealing the 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.
Other Matters
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.
Note 8. 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.
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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 April 30,
(Amounts in millions)
20212020
Net sales:
Walmart U.S.$93,167 $88,743 
Walmart International27,300 29,766 
Sam's Club16,692 15,163 
Net sales$137,159 $133,672 
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 April 30,
(Amounts in millions)
20212020
Operating income (loss):
Walmart U.S.$5,455 $4,302 
Walmart International1,194 806 
Sam's Club575 494 
Corporate and support(315)(378)
Operating income6,909 5,224 
Interest, net536 549 
Other (gains) and losses2,529 (721)
Income before income taxes$3,844 $5,396 
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 April 30,
Walmart U.S. net sales by merchandise category20212020
Grocery$51,391 $52,921 
General merchandise30,607 25,466 
Health and wellness9,970 9,600 
Other categories1,199 756 
Total$93,167 $88,743 
Of Walmart U.S.'s total net sales, approximately $11.3 billion and $8.3 billion related to eCommerce for the three months ended April 30, 2021 and 2020, respectively.
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(Amounts in millions)Three Months Ended April 30,
Walmart International net sales by market20212020
Mexico and Central America$8,330 $8,496 
United Kingdom3,811 7,132 
Canada4,848 4,286 
China3,773 3,368 
Other6,538 6,484 
Total$27,300 $29,766 
Of Walmart International's total net sales, approximately $4.3 billion and $2.9 billion related to eCommerce for the three months ended April 30, 2021 and 2020, respectively.
(Amounts in millions)Three Months Ended April 30,
Sam’s Club net sales by merchandise category20212020
Grocery and consumables$10,669 $10,361 
Fuel, tobacco and other categories2,299 2,013 
Home and apparel2,082 1,280 
Health and wellness941 901 
Technology, office and entertainment701 608 
Total$16,692 $15,163 
Of Sam's Club's total net sales, approximately $1.5 billion and $1.0 billion related to eCommerce for the three months ended April 30, 2021 and 2020, respectively.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Overview
This discussion, which presents Walmart Inc.'s ("Walmart," the "Company," "our," or "we") results for periods occurring in the fiscal year ending January 31, 2022 ("fiscal 2022") and the fiscal year ended January 31, 2021 ("fiscal 2021"), should be read in conjunction with our Condensed Consolidated Financial Statements as of and for the three months ended April 30, 2021, and the accompanying notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as our Consolidated Financial Statements as of and for the year ended January 31, 2021, the accompanying notes and the related Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the year ended January 31, 2021.
We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements from period to period and the primary factors that accounted for those changes. We also discuss certain performance metrics that management uses to assess the Company's performance. Additionally, the discussion provides information about the financial results of each of the three segments of our business to provide a better understanding of how each of those segments and its results of operations affect the financial condition and results of operations of the Company as a whole.
Throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations, we discuss segment operating income, comparable store and club sales and other measures. Management measures the results of the Company's segments using each segment's operating income, including certain corporate overhead allocations, as well as other measures. From time to time, we revise the measurement of each segment's operating income and other measures as determined by the information regularly reviewed by our chief operating decision maker.
Comparable store and club sales, or comparable sales, is a metric that indicates the performance of our existing stores and clubs by measuring the change in sales for such stores and clubs, including eCommerce sales, for a particular period from the corresponding prior year period. Walmart's definition of comparable sales includes sales from stores and clubs open for the previous 12 months, including remodels, relocations, expansions and conversions, as well as eCommerce sales. We measure the eCommerce sales impact by including all sales initiated digitally, including omni-channel transactions which are fulfilled through our stores and clubs. Sales at a store that has changed in format are excluded from comparable sales when the conversion of that store is accompanied by a relocation or expansion that results in a change in the store's retail square feet of more than five percent. Sales related to divested businesses are excluded from comparable sales, and sales related to acquisitions are excluded until such acquisitions have been owned for 12 months. Comparable sales are also referred to as "same-store" sales by others within the retail industry. The method of calculating comparable sales varies across the retail industry. As a result, our calculation of comparable sales is not necessarily comparable to similarly titled measures reported by other companies.
In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period’s currency exchange rates and the comparable prior year period’s currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months. Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. Volatility in currency exchange rates may impact the results, including net sales and operating income, of the Company and the Walmart International segment in the future.
Each of our segments contributes to the Company's operating results differently. Each, however, has generally maintained a consistent contribution rate to the Company's net sales and operating income in recent years other than minor changes to the contribution rate for the Walmart International segment due to fluctuations in currency exchange rates. Consistent with our strategy to strengthen our Walmart International portfolio for the long-term, we completed the following actions during the three months ended April 30, 2021:
Completed the sale of Asda, our retail business in the U.K., for net consideration of $9.6 billion in February 2021. During the three months ended April 30, 2021, we recognized an incremental non-cash loss of $0.2 billion, after tax, primarily due to changes in the net assets of the disposal group, currency exchange rate fluctuations and customary purchase price adjustments upon closing.
Completed the sale of Seiyu, our retail business in Japan, for net consideration of $1.2 billion in March 2021. During the three months ended April 30, 2021, we recognized an incremental non-cash loss of $0.2 billion, after tax, primarily due to changes in the net assets of the disposal group, currency exchange rate fluctuations and customary purchase price adjustments upon closing.
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We operate in the highly competitive omni-channel retail industry in all of the markets we serve. We face strong sales competition from other discount, department, drug, dollar, variety and specialty stores, warehouse clubs and supermarkets, as well as eCommerce businesses. Many of these competitors are national, regional or international chains or have a national or international omni-channel or eCommerce presence. We compete with a number of companies for attracting and retaining quality employees ("associates"). We, along with other retail companies, are influenced by a number of factors including, but not limited to: catastrophic events, weather, global health epidemics including the ongoing COVID-19 pandemic, competitive pressures, consumer disposable income, consumer debt levels and buying patterns, consumer credit availability, cost of goods, currency exchange rate fluctuations, customer preferences, deflation, inflation, fuel and energy prices, general economic conditions, insurance costs, interest rates, labor costs, tax rates, the imposition of tariffs, cybersecurity attacks and unemployment. Further information on the factors that can affect our operating results and on certain risks to our Company and an investment in our securities can be found herein under "Item 5. Other Information."
We expect continued uncertainty in our business and the global economy due to the duration and intensity of the COVID–19 pandemic; the duration and extent of economic stimulus; timing and effectiveness of global vaccines; and volatility in employment trends and consumer confidence which may impact our results. For a detailed discussion on results of operations by reportable segment, refer to "Results of Operations" below.

Company Performance Metrics
We are committed to helping customers save money and live better through everyday low prices, supported by everyday low costs.  At times, we adjust our business strategies to maintain and strengthen our competitive positions in the countries in which we operate.  We define our financial framework as:
strong, efficient growth;
consistent operating discipline; and
strategic capital allocation.
As we execute on this financial framework, we believe our returns on capital will improve over time.
Strong, Efficient Growth
Our objective of prioritizing strong, efficient growth means we will focus on the most productive growth opportunities, increasing comparable store and club sales, accelerating eCommerce sales growth and expansion of omni-channel initiatives while slowing the rate of growth of new stores and clubs. At times, we make strategic investments which are focused on the long-term growth of the Company.
Comparable sales is a metric that indicates the performance of our existing stores and clubs by measuring the change in sales for such stores and clubs, including eCommerce sales, for a particular period over the corresponding period in the previous year. The retail industry generally reports comparable sales using the retail calendar (also known as the 4-5-4 calendar). To be consistent with the retail industry, we provide comparable sales using the retail calendar in our quarterly earnings releases. However, when we discuss our comparable sales below, we are referring to our calendar comparable sales calculated using our fiscal calendar, which may result in differences when compared to comparable sales using the retail calendar.
Calendar comparable sales, as well as the impact of fuel, for the three months ended April 30, 2021 and 2020, were as follows:
 Three Months Ended April 30,
 2021202020212020
 With FuelFuel Impact
Walmart U.S.5.3 %10.6 %0.2 %(0.2)%
Sam's Club10.1 %9.6 %3.9 %(3.4)%
Total U.S.6.0 %10.5 %0.8 %(0.6)%
Comparable sales in the U.S., including fuel, increased 6.0% for the three months ended April 30, 2021 when compared to the same period in the previous fiscal year. The Walmart U.S. segment had comparable sales growth of 5.3% for the three months ended April 30, 2021 driven by growth in average ticket, primarily aided by consumer stimulus spending. Customers continued to consolidate shopping trips and purchase larger baskets which contributed to average ticket growth while transactions decreased overall for the quarter, turning positive in April 2021. The Walmart U.S. segment's eCommerce sales positively contributed approximately 3.5% to comparable sales for the three months ended April 30, 2021 and was primarily driven by store pickup and delivery and walmart.com.
Comparable sales at the Sam's Club segment increased 10.1% for the three months ended April 30, 2021. The Sam's Club segment's comparable sales benefited from growth in transactions and average ticket, which was aided by stimulus spending, partially offset by our decision to remove tobacco from certain club locations. The Sam's Club segment's eCommerce sales positively contributed approximately 2.8% to comparable sales for the three months ended April 30, 2021.
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Consistent Operating Discipline
We operate with discipline by managing expenses and optimizing the efficiency of how we work and creating an environment in which we have sustainable lowest cost to serve. We invest in technology and process improvements to increase productivity, manage inventory and reduce costs. We measure operating discipline through expense leverage, which we define as net sales growing at a faster rate than operating, selling, general and administrative ("operating") expenses.
Three Months Ended April 30,
(Amounts in millions)20212020
Net sales$137,159 $133,672 
Percentage change from comparable period2.6 %8.7 %
Operating, selling, general and administrative expenses$28,129 $27,372 
Percentage change from comparable period2.8 %5.5 %
Operating, selling, general and administrative expenses as a percentage of net sales20.5 %20.5 %
Despite the growth in net sales, operating expenses as a percentage of net sales for the three months ended April 30, 2021 was relatively flat when compared to the same period in the previous fiscal year. Increased wage and technology investments in the Walmart U.S. segment were offset by $0.5 billion of lower incremental COVID-19 related costs, as well as a benefit from depreciation and amortization expense not recorded subsequent to the held for sale classification of our operations in the U.K. and Japan in fiscal 2021.
Strategic Capital Allocation
Our strategy includes improving our customer-facing initiatives in stores and clubs and creating a seamless omni-channel experience for our customers. As such, we are allocating more capital to supply chain, customer-facing initiatives, technology and store remodels, and less to new store and club openings. The following table provides additional detail:
(Amounts in millions)Three Months Ended April 30,
Allocation of Capital Expenditures20212020
Supply chain, customer-facing initiatives and technology$1,013 $823 
Store remodels613 438 
New stores and clubs, including expansions and relocations38 23 
Total U.S.1,664 1,284 
Walmart International550 468 
Total Capital Expenditures$2,214 $1,752 

Returns
As we execute our financial framework, we believe our return on capital will improve over time. We measure return on capital with our return on investment and free cash flow metrics. In addition, we provide returns in the form of share repurchases and dividends, which are discussed in the Liquidity and Capital Resources section.
Return on Assets and Return on Investment
We include Return on Assets ("ROA"), the most directly comparable measure based on our financial statements presented in accordance with generally accepted accounting principles in the U.S. ("GAAP"), and Return on Investment ("ROI") as metrics to assess returns on assets. While ROI is considered a non-GAAP financial measure, management believes ROI is a meaningful metric to share with investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts. ROA was 5.3% and 6.6% for the trailing twelve months ended April 30, 2021 and 2020, respectively. The decrease in ROA was primarily due to the losses on divestiture of our operations in the U.K., Japan and Argentina, partially offset by the increase in operating income as well as the fair value change in our equity investments. ROI was 14.4% and 13.4% for the trailing twelve months ended April 30, 2021 and 2020. The increase in ROI was primarily due to the increase in operating income.
We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing 12 months divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and amortization, less average accounts payable and average accrued liabilities for that period.
Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that exclude and include amounts that are included and excluded in the most directly comparable GAAP financial measure. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. As mentioned above, we consider ROA to be the financial measure computed in accordance with generally accepted accounting principles most directly comparable to our calculation of ROI. ROI differs from ROA (which is consolidated net income for the period divided by average total assets for the period) because ROI: adjusts
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operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities to arrive at total invested capital. Because of the adjustments mentioned above, we believe ROI more accurately measures how we are deploying our key assets and is more meaningful to investors than ROA. Although ROI is a standard financial measure, numerous methods exist for calculating a company's ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI.
The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, the most comparable GAAP financial measure, is as follows:
 For the Trailing Twelve Months Ending April 30,
(Amounts in millions)20212020
CALCULATION OF RETURN ON ASSETS
Numerator
Consolidated net income$12,443 $15,369 
Denominator
Average total assets(1)
$234,737 $233,718 
Return on assets (ROA)5.3 %6.6 %
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income$24,233 $20,847 
+ Interest income108 184 
+ Depreciation and amortization11,022 11,062 
+ Rent2,534 2,694 
= ROI operating income$37,897 $34,787 
Denominator
Average total assets(1)
$234,737 $233,718 
'+ Average accumulated depreciation and amortization(1)
95,424 90,970 
'- Average accounts payable(1)
46,124 44,603 
 - Average accrued liabilities(1)
20,874 20,700 
= Average invested capital$263,163 $259,385 
Return on investment (ROI)14.4 %13.4 %
 (1) The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2.
 As of April 30,
 202120202019
Certain Balance Sheet Data