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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, 2022.
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 001-06991
wmt-20220430_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
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 2,741,150,050 shares of common stock outstanding as of June 1, 2022.


Table of Contents
Walmart Inc.
Form 10-Q
For the Quarterly Period Ended April 30, 2022



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)20222021
Revenues:
Net sales$140,288 $137,159 
Membership and other income1,281 1,151 
Total revenues141,569 138,310 
Costs and expenses:
Cost of sales106,847 103,272 
Operating, selling, general and administrative expenses29,404 28,129 
Operating income5,318 6,909 
Interest:
Debt372 481 
Finance lease83 85 
Interest income(36)(30)
Interest, net419 536 
Other (gains) and losses1,998 2,529 
Income before income taxes2,901 3,844 
Provision for income taxes798 1,033 
Consolidated net income2,103 2,811 
Consolidated net income attributable to noncontrolling interest(49)(81)
Consolidated net income attributable to Walmart$2,054 $2,730 
Net income per common share:
Basic net income per common share attributable to Walmart$0.75 $0.97 
Diluted net income per common share attributable to Walmart0.74 0.97 
Weighted-average common shares outstanding:
Basic2,754 2,815 
Diluted2,765 2,829 
Dividends declared per common share$2.24 $2.20 
See accompanying notes.
3

Table of Contents
Walmart Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 Three Months Ended April 30,
(Amounts in millions)20222021
Consolidated net income$2,103 $2,811 
Consolidated net income attributable to noncontrolling interest(49)(81)
Consolidated net income attributable to Walmart2,054 2,730 
Other comprehensive income (loss), net of income taxes
Currency translation and other232 2,959 
Net investment hedges (1,202)
Cash flow hedges42 20 
Minimum pension liability1 1,969 
Other comprehensive income (loss), net of income taxes275 3,746 
Other comprehensive (income) loss attributable to noncontrolling interest(7)74 
Other comprehensive income (loss) attributable to Walmart268 3,820 
Comprehensive income, net of income taxes2,378 6,557 
Comprehensive income attributable to noncontrolling interest(56)(7)
Comprehensive income attributable to Walmart$2,322 $6,550 
See accompanying notes.
4

Table of Contents
Walmart Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
April 30,January 31,April 30,
(Amounts in millions)202220222021
ASSETS
Current assets:
Cash and cash equivalents$11,817 $14,760 $22,846 
Receivables, net7,674 8,280 5,797 
Inventories61,229 56,511 46,383 
Prepaid expenses and other2,500 1,519 1,565 
Total current assets83,220 81,070 76,591 
Property and equipment, net94,741 94,515 90,996 
Operating lease right-of-use assets13,971 13,758 13,650 
Finance lease right-of-use assets, net4,505 4,351 3,979 
Goodwill29,438 29,014 28,872 
Other long-term assets20,267 22,152 22,493 
Total assets$246,142 $244,860 $236,581 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
Current liabilities:
Short-term borrowings$11,432 $410 $362 
Accounts payable52,926 55,261 48,151 
Dividends payable4,631  4,651 
Accrued liabilities21,061 26,060 21,371 
Accrued income taxes904 851 851 
Long-term debt due within one year3,580 2,803 3,500 
Operating lease obligations due within one year1,485 1,483 1,448 
Finance lease obligations due within one year511 511 507 
Total current liabilities96,530 87,379 80,841 
Long-term debt32,174 34,864 40,273 
Long-term operating lease obligations13,226 13,009 12,930 
Long-term finance lease obligations4,409 4,243 3,802 
Deferred income taxes and other13,943 13,474 14,143 
Commitments and contingencies
Redeemable noncontrolling interest260   
Equity:
Common stock275 276 280 
Capital in excess of par value4,587 4,839 3,424 
Retained earnings80,532 86,904 82,577 
Accumulated other comprehensive loss(8,498)(8,766)(7,946)
Total Walmart shareholders' equity76,896 83,253 78,335 
Nonredeemable noncontrolling interest8,704 8,638 6,257 
Total equity85,600 91,891 84,592 
Total liabilities, redeemable noncontrolling interest, and equity$246,142 $244,860 $236,581 
See accompanying notes.
5

Table of Contents
Walmart Inc.
Condensed Consolidated Statements of Shareholders' Equity
(Unaudited)
AccumulatedTotal
Capital inOtherWalmartNonredeemable
(Amounts in millions)Common StockExcess ofRetainedComprehensiveShareholders'NoncontrollingTotal
SharesAmountPar ValueEarningsLossEquityInterestEquity
Balances as of February 1, 20222,761 $276 $4,839 $86,904 $(8,766)$83,253 $8,638 $91,891 
Consolidated net income— — — 2,054 — 2,054 49 2,103 
Other comprehensive income (loss), net of income taxes— — — — 268 268 7 275 
Dividends declared ($2.24 per share)
— — — (6,173)— (6,173)— (6,173)
Purchase of Company stock(17)(2)(125)(2,249)— (2,376)— (2,376)
Sale of subsidiary stock— — 24 — — 24 11 35 
Other4 1 (151)(4)— (154)(1)(155)
Balances as of April 30, 20222,748 $275 $4,587 $80,532 $(8,498)$76,896 $8,704 $85,600 
See accompanying notes.

AccumulatedTotal
Capital inOtherWalmartNonredeemable
(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)
Sale of subsidiary stock— — 18  — 18 57 75 
Other5 — (128)2 — (126)(5)(131)
Balances as of April 30, 20212,805 $280 $3,424 $82,577 $(7,946)$78,335 $6,257 $84,592 
See accompanying notes.


6

Table of Contents
Walmart Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended April 30,
(Amounts in millions)20222021
Cash flows from operating activities:
Consolidated net income$2,103 $2,811 
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities:
Depreciation and amortization2,680 2,661 
Net unrealized and realized (gains) and losses1,989 2,077 
Losses on disposal of business operations 433 
Deferred income taxes(69)(155)
Other operating activities(59)270 
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:
Receivables, net837 828 
Inventories(4,699)(1,487)
Accounts payable(1,640)(1,004)
Accrued liabilities(4,949)(4,004)
Accrued income taxes49 428 
Net cash provided by (used in) operating activities(3,758)2,858 
Cash flows from investing activities:
Payments for property and equipment(3,539)(2,214)
Proceeds from the disposal of property and equipment35 72 
Proceeds from disposal of certain operations, net of divested cash 7,935 
Payments for business acquisitions, net of cash acquired(598) 
Other investing activities(456)57 
Net cash provided by (used in) investing activities(4,558)5,850 
Cash flows from financing activities:
Net change in short-term borrowings10,995 138 
Repayments of long-term debt(926)(510)
Dividends paid(1,543)(1,549)
Purchase of Company stock(2,408)(2,809)
Sale of subsidiary stock35 75 
Other financing activities(838)(744)
Net cash provided by (used in) financing activities5,315 (5,399)
Effect of exchange rates on cash, cash equivalents and restricted cash49 (51)
Net increase (decrease) in cash, cash equivalents and restricted cash(2,952)3,258 
Change in cash and cash equivalents reclassified from assets held for sale 1,848 
Cash, cash equivalents and restricted cash at beginning of year14,834 17,788 
Cash, cash equivalents and restricted cash at end of period$11,882 $22,894 
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. Certain previously reported amounts have been reclassified to conform to the current year presentation. 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, 2022 ("fiscal 2022"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.
The Company's Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag based on a calendar year. There were no significant intervening events during the month of April 2022 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 has 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.
Redeemable Noncontrolling Interest
Noncontrolling interests which are redeemable outside the Company's control at fixed or determinable prices and dates are presented as temporary equity on the Condensed Consolidated Balance Sheets. Redeemable noncontrolling interests are recorded at the greater of the redemption value or the carrying value of the noncontrolling interest and adjusted each reporting period for income, loss and any distributions made. As of April 30, 2022, the Company has a redeemable noncontrolling interest related to a recent acquisition in the Walmart U.S. segment as the minority interest owner holds a put option which may require the Company to purchase their interest at fair value beginning in December 2027 and annually thereafter.
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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, 2022 and 2021.
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)20222021
Numerator
Consolidated net income$2,103 $2,811 
Consolidated net income attributable to noncontrolling interest(49)(81)
Consolidated net income attributable to Walmart$2,054 $2,730 
Denominator
Weighted-average common shares outstanding, basic2,754 2,815 
Dilutive impact of share-based awards11 14 
Weighted-average common shares outstanding, diluted2,765 2,829 
Net income per common share attributable to Walmart
Basic$0.75 $0.97 
Diluted0.74 0.97 
Note 3. Accumulated Other Comprehensive Loss
Amounts reclassified from accumulated other comprehensive loss for derivative instruments are generally recorded in interest, net, in the Company's Condensed Consolidated Statements of Income. Amounts for the minimum pension liability, as well as the cumulative translation and any related net investment hedge impacts resulting from a disposition of a business, are recorded in other gains and losses in the Company's Condensed Consolidated Statements of Income. The following tables provide the changes in the composition of total accumulated other comprehensive loss:
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2022$(8,100)$94 $(748)$(12)$(8,766)
Other comprehensive income before reclassifications, net225  26  251 
Reclassifications to income, net  16 1 17 
Balances as of April 30, 2022$(7,875)$94 $(706)$(11)$(8,498)
(Amounts in millions and net of immaterial income taxes)Currency 
Translation and Other
Net Investment HedgesCash Flow HedgesMinimum
Pension 
Liability
Total
Balances as of February 1, 2021$(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.
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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 2022, 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, 2022 and January 31, 2022, all undrawn.
The following table provides the changes in the Company's long-term debt for the three months ended April 30, 2022:
(Amounts in millions)Long-term debt due within one yearLong-term debtTotal
Balances as of February 1, 2022$2,803 $34,864 $37,667 
Repayments of long-term debt(926) (926)
Reclassifications of long-term debt1,750 (1,750) 
Other(47)(940)(987)
Balances as of April 30, 2022$3,580 $32,174 $35,754 
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.
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, 2022Fair Value as of January 31, 2022
Equity investments measured using Level 1 inputs$5,080 $6,069 
Equity investments measured using Level 2 inputs4,810 5,819 
Total$9,890 $11,888 
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, 2022 and January 31, 2022, the notional amounts and fair values of these derivatives were as follows:
 April 30, 2022January 31, 2022
(Amounts in millions)Notional AmountFair ValueNotional AmountFair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges$8,021 $(539)
(1)
$8,021 $(47)
(1)
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges6,428 (1,121)
(1)
7,855 (1,048)
(1)
Total$14,449 $(1,660)$15,876 $(1,095)
(1)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. The Company did not have any material assets or liabilities resulting in nonrecurring fair value measurements as of April 30, 2022.
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.
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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, 2022 and January 31, 2022, are as follows: 
 April 30, 2022January 31, 2022
(Amounts in millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, including amounts due within one year$35,754 $36,680 $37,667 $42,381 
Note 6. Contingencies
Legal Proceedings
The Company is involved in a number of legal proceedings and certain regulatory matters. 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 recorded. 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 to or settled by the Company, individually or in the aggregate, may result in a liability material to the Company's financial position, results of operations or cash flows.
Opioids Litigation
In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous lawsuits filed against a wide array of defendants by various plaintiffs, including counties, cities, healthcare providers, Native American tribes, individuals, and third-party payers, asserting claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation is entitled In re National Prescription Opiate Litigation (MDL No. 2804) (the "MDL") 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. The liability phase of a trial in one of the MDL cases began on October 4, 2021 against a number of parties, including the Company, regarding opioid dispensing claims. On November 23, 2021, the jury found in favor of the plaintiffs as to the liability of all defendants, including the Company. The abatement phase of the trial, which will determine amounts owed by the defendants, began on May 10, 2022 and ended on May 17, 2022, and the parties will await a ruling from the court. The Company intends to appeal the jury verdict from the liability phase upon completion of the abatement phase of the trial.
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 December 22, 2020, the U.S. Department of Justice (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 Controlled Substances Act (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. On November 19, 2021, the District Court stayed further proceedings in the DOJ complaint pending the decision of the United States Supreme Court in two consolidated cases (not involving Walmart) interpreting the CSA.
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. On October 8, 2021, the defendants filed a motion to dismiss the consolidated securities action; the lead plaintiff responded to the motion on January 10, 2022; and the defendants filed their reply brief on February 10, 2022. 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. Those cases have been stayed pending developments in other Opioids Litigation matters. On September 27, 2021, three shareholders filed a derivative action in the Delaware Court of Chancery alleging that certain members of the current Board and certain former officers breached their fiduciary duties in failing to
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adequately oversee the Company's prescription opioids business. The defendants filed the opening brief on their motion to dismiss that case on December 21, 2021, and the plaintiffs responded by filing an amended complaint on February 22, 2022. On April 27, 2022, the defendants filed their opening brief in support of their motion to dismiss the amended complaint.
The Company cannot reasonably estimate any loss or range of loss that may arise from the various Opioids Litigation and intends to vigorously defend these litigation matters. Accordingly, the Company can provide no assurance as to the scope and outcome of these matters and no assurance as to whether its business, financial position, results of operations or cash flows will not be materially adversely affected.
Asda Equal Value Claims
Asda, formerly a subsidiary of the Company, was and still is 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 oversee the conduct of 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.
Money Transfer Agent Services Matters
The Company has received grand jury subpoenas issued by the United States Attorney's Office for the Middle District of Pennsylvania seeking documents regarding the Company's consumer fraud program and anti-money laundering compliance related to the Company's money transfer services, where Walmart is an agent. The most recent subpoena was issued in August 2020. The Company has been responding to these subpoenas and is cooperating with the government's investigation. The Company has also responded to civil investigative demands from the United States Federal Trade Commission (the "FTC") in connection with the FTC's investigation related to money transfers and the Company's anti-fraud program in its capacity as an agent. While the Company had been engaged in discussions with the FTC regarding a potential resolution of this matter, the parties have not been able to reach a resolution. In May 2022, the FTC Bureau of Consumer Protection forwarded a revised draft complaint to the FTC seeking authority to file a civil complaint against the Company seeking various forms of monetary and injunctive relief regarding the Company’s anti-fraud program. The Company understands that the FTC voted to authorize the complaint on June 1, 2022. The Company cannot reasonably estimate any loss or range of loss that may arise from these matters. While the Company does not currently believe that the outcome of these matters will have a material adverse effect on its business, financial position, results of operations or cash flows, 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.
Note 7. Segments and Disaggregated Revenue
Segments
The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce websites, located throughout the U.S., Africa, Canada, Central America, Chile, China, India and Mexico. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services.
The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce and omni-channel initiatives. The Walmart International segment consists of the Company's operations outside of the U.S., as well as eCommerce and omni-channel initiatives. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments.
The Company measures the results of its segments using, among other measures, each segment's net sales and operating income, which includes certain corporate overhead allocations. From time to time, the Company revises the measurement of each segment's operating income and other measures, including any corporate overhead allocations, as determined by the information regularly reviewed by its CODM. When the measurement of a segment significantly changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation.

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Net sales by segment are as follows:
 Three Months Ended April 30,
(Amounts in millions)
20222021
Net sales:
Walmart U.S.$96,904 $93,167 
Walmart International23,763 27,300 
Sam's Club19,621 16,692 
Net sales$140,288 $137,159 
Operating income by segment, as well as unallocated operating expenses for corporate and support, interest, net, and other gains and losses are as follows:
 Three Months Ended April 30,
(Amounts in millions)
20222021
Operating income (loss):
Walmart U.S.$4,462 $5,455 
Walmart International772 1,194 
Sam's Club460 575 
Corporate and support(376)(315)
Operating income5,318 6,909 
Interest, net419 536 
Other (gains) and losses1,998 2,529 
Income before income taxes$2,901 $3,844 
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 category20222021
Grocery$56,764 $51,391 
General merchandise27,379 30,607 
Health and wellness10,894 9,970 
Other categories1,867 1,199 
Total$96,904 $93,167 
Of Walmart U.S.'s total net sales, approximately $11.4 billion and $11.3 billion related to eCommerce for the three months ended April 30, 2022 and 2021, respectively.
(Amounts in millions)Three Months Ended April 30,
Walmart International net sales by market20222021
Mexico and Central America$9,088 $8,330 
Canada5,150 4,848 
China4,127 3,773 
United Kingdom 3,811 
Other5,398 6,538 
Total$23,763 $27,300 
Of Walmart International's total net sales, approximately $4.3 billion related to eCommerce for both the three months ended April 30, 2022 and 2021.
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(Amounts in millions)Three Months Ended April 30,
Sam's Club net sales by merchandise category20222021
Grocery and consumables$12,301 $10,669 
Fuel, tobacco and other categories3,623 2,299 
Home and apparel2,050 2,082 
Health and wellness1,010 941 
Technology, office and entertainment637 701 
Total$19,621 $16,692 
Of Sam's Club's total net sales, approximately $1.9 billion and $1.5 billion related to eCommerce for the three months ended April 30, 2022 and 2021, 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, 2023 ("fiscal 2023") and the fiscal year ended January 31, 2022 ("fiscal 2022"), should be read in conjunction with our Condensed Consolidated Financial Statements as of and for the three months ended April 30, 2022, 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, 2022, 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, 2022.
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.
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 and other risks related to climate change, global health epidemics, including the COVID-19 pandemic, competitive pressures, consumer disposable income, consumer debt levels and buying patterns, consumer credit availability, supply chain disruptions, cost and availability of goods, currency exchange rate fluctuations, customer preferences, deflation, inflation, fuel and energy prices, general economic conditions, insurance costs, interest rates, labor availability and 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."
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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 measures; the effectiveness and extent of administration of vaccinations and medical treatment; pressure from inflation; supply chain disruptions; 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, 2022 and 2021, were as follows:
 Three Months Ended April 30,
 2022202120222021
 With FuelFuel Impact
Walmart U.S.4.0 %5.3 %0.6 %0.2 %
Sam's Club17.4 %10.1 %6.9 %3.9 %
Total U.S.6.0 %6.0 %1.6 %0.8 %
Comparable sales in the U.S., including fuel, increased 6.0% for the three months ended April 30, 2022 when compared to the same period in the previous fiscal year. The Walmart U.S. segment had comparable sales growth of 4.0% for the three months ended April 30, 2022 driven by growth in average ticket, including strong sales in grocery and some higher inflation impacts in certain merchandise categories, while transactions were relatively flat. The Walmart U.S. segment's eCommerce sales grew at a slower rate than total comparable sales which negatively contributed approximately 0.4% to comparable sales for the three months ended April 30, 2022.
Comparable sales at the Sam's Club segment increased 17.4% for the three months ended April 30, 2022. Growth in comparable sales benefited from growth in transactions and average ticket and included some higher inflation impacts in certain merchandise categories. The Sam's Club segment's eCommerce sales positively contributed approximately 0.5% to comparable sales for the three months ended April 30, 2022.
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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)20222021
Net sales$140,288 $137,159 
Percentage change from comparable period2.3 %2.6 %
Operating, selling, general and administrative expenses$29,404 $28,129 
Percentage change from comparable period4.5 %2.8 %
Operating, selling, general and administrative expenses as a percentage of net sales21.0 %20.5 %
Operating expenses as a percentage of net sales increased 45 basis points for the three months ended April 30, 2022, primarily driven by increased wage costs in the Walmart U.S. segment, partially offset by net sales growth.
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 Expenditures20222021
Supply chain, customer-facing initiatives and technology$2,063 $1,013 
Store and club remodels981 613 
New stores and clubs, including expansions and relocations11 38 
Total U.S.3,055 1,664 
Walmart International484 550 
Total Capital Expenditures$3,539 $2,214 

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 5.5% and 5.3% for the trailing twelve months ended April 30, 2022 and 2021, respectively. The increase in ROA was primarily due to the increase in net income. ROI was 13.9% and 14.4% for the trailing twelve months ended April 30, 2022 and 2021, respectively. The decrease in ROI was primarily due to the increase in average total assets driven by higher inventories.
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 GAAP 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 operating income to exclude certain expense items and adds interest income; and 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.
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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)20222021
CALCULATION OF RETURN ON ASSETS
Numerator
Consolidated net income$13,232 $12,443 
Denominator
Average total assets(1)
$241,362 $234,737 
Return on assets (ROA)5.5 %5.3 %
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income$24,351 $24,233 
+ Interest income163 108 
+ Depreciation and amortization10,679 11,022 
+ Rent2,270 2,534 
= ROI operating income$37,463 $37,897 
Denominator
Average total assets(1)
$241,362 $234,737 
'+ Average accumulated depreciation and amortization(1)
100,315 95,424 
'- Average accounts payable(1)
50,539 46,124 
 - Average accrued liabilities(1)
21,216 20,874 
= Average invested capital$269,922 $263,163 
Return on investment (ROI)13.9 %14.4 %
 (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,
 202220212020
Certain Balance Sheet Data
Total assets$246,142 $236,581 $232,892 
Accumulated depreciation and amortization104,295 96,334 94,514 
Accounts payable52,926 48,151 44,096 
Accrued liabilities21,061 21,371 20,377 
 




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Table of Contents
Free Cash Flow
Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. See Liquidity and Capital Resources for discussions of GAAP metrics including net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities.
We define free cash flow as net cash used in or provided by operating activities in a period minus payments for property and equipment made in that period. Net cash used in operating activities was $3.8 billion for the three months ended April 30, 2022, which represents a decline of $6.6 billion when compared to the same period in the prior year. The decline is primarily due to an increase in inventory costs and purchases to support strong sales, lower operating income and the timing of certain payments and payables. Free cash flow for the three months ended April 30, 2022 was negative $7.3 billion, which represents a decline of $7.9 billion when compared to the same period in the prior year. The decline in free cash flow is due to the reduction in operating cash flows described above, as well as an increase of $1.3 billion in capital expenditures to support our investment strategy.
Walmart's definition of free cash flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous methods may exist for calculating a company's free cash flow. As a result, the method used by management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow.
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.
 Three Months Ended April 30,
(Amounts in millions)20222021
Net cash provided by (used in) operating activities$(3,758)$2,858 
Payments for property and equipment(3,539)(2,214)
Free cash flow$(7,297)$644 
Net cash provided by (used in) investing activities(1)
$(4,558)$5,850 
Net cash provided by (used in) financing activities5,315 (5,399)
(1) "Net cash provided by (used in) investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.
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Results of Operations
Consolidated Results of Operations
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Three Months Ended April 30,
(Amounts in millions, except unit counts)20222021
Total revenues$141,569 $138,310 
Percentage change from comparable period2.4%2.7%
Net sales$140,288 $137,159 
Percentage change from comparable period2.3%