WALMART INC.

[Pages:43](Mark One)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the quarterly period ended July 31, 2020. 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

WALMART INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

71-0415188

(I.R.S. Employer Identification No.)

702 S.W. 8th Street Bentonville AR

(Address of principal executive offices)

72716

(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

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Common Stock, par value $0.10 per share

1.900% Notes Due 2022 2.550% Notes Due 2026

Trading Symbol(s) WMT WMT22 WMT26

Name of each exchange on which registered New York Stock Exchange New York Stock Exchange New York Stock Exchange

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

Non-Accelerated Filer

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 2,833,752,938 shares of common stock outstanding as of August 31, 2020.

Table of Contents

Walmart Inc. Form 10-Q

For the Quarterly Period Ended July 31, 2020

Table of Contents

Part I. Financial Information Item 1. Financial Statements Condensed Consolidated Statements of Income Condensed Consolidated Statements of Comprehensive Income Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Shareholders' Equity Condensed Consolidated Statements of Cash Flows Notes to Condensed Consolidated Financial Statements Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures

Part II. Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Item 5. Other Information Item 6. Exhibits

Signatures

2

Page

3 4 5 6 8 9 15 26 27

28 29 29 29 33

34

Table of Contents PART I. FINANCIAL INFORMATION Item 1. Financial Statements

Walmart Inc. Condensed Consolidated Statements of Income

(Unaudited)

(Amounts in millions, except per share data) Revenues:

Net sales Membership and other income

Total revenues Costs and expenses:

Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Finance lease Interest income

Interest, net Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net (income) loss attributable to noncontrolling interest Consolidated net income attributable to Walmart

Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart

Weighted-average common shares outstanding: Basic Diluted

Dividends declared per common share

See accompanying notes.

3

Three Months Ended July 31,

2020

2019

Six Months Ended July 31,

2020

2019

$ 136,824 918

137,742

$ 129,388 989

130,377

$ 270,496 1,868

272,364

$ 252,337 1,965

254,302

102,689 28,994

6,059

97,923 26,871

5,583

204,715 56,366 11,283

190,957 52,817 10,528

577 81 (23)

635 (3,222) 8,646 2,207 6,439

37 $ 6,476 $

558 83 (56)

585 85

4,913 1,233 3,680

(70) 3,610

1,087 163 (66)

1,184 (3,943) 14,042 3,529 10,513

(47) $ 10,466

1,146 168 (104)

1,210 (752) 10,070 2,484 7,586 (134) $ 7,452

$ 2.29 $ 1.27 $ 3.70 $ 2.60

2.27

1.26

3.67

2.59

2,832 2,848

2,853 2,869

2,832 2,848

2,861 2,878

$

-- $

-- $ 2.16 $ 2.12

Table of Contents

Walmart Inc. Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Amounts in millions) Consolidated net income

Consolidated net (income) loss attributable to noncontrolling interest Consolidated net income attributable to Walmart

Three Months Ended July Six Months Ended July

31,

31,

2020 $ 6,439

2019 $ 3,680

2020

2019

$ 10,513 $ 7,586

37

(70)

(47)

(134)

6,476

3,610

10,466

7,452

Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability

Other comprehensive income (loss), net of income taxes Other comprehensive (income) loss attributable to noncontrolling interest

Other comprehensive income (loss) attributable to Walmart

298 (191) 313

16 436 (52) 384

(81) 140 (158)

4 (95) (84) (179)

(3,670) (34) 34 31

(3,639) 660

(2,979)

426 248 (289)

5 390 (118) 272

Comprehensive income, net of income taxes Comprehensive (income) loss attributable to noncontrolling interest

Comprehensive income attributable to Walmart

See accompanying notes.

4

6,875

3,585

6,874

7,976

(15)

(154)

613

(252)

$ 6,860 $ 3,431 $ 7,487 $ 7,724

Table of Contents

(Amounts in millions) ASSETS Current assets:

Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other

Total current assets

Property and equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Goodwill Other long-term assets Total assets

LIABILITIES AND EQUITY Current liabilities:

Short-term borrowings Accounts payable Dividends payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year

Total current liabilities

Long-term debt Long-term operating lease obligations Long-term finance lease obligations Deferred income taxes and other

Commitments and contingencies

Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity

Total liabilities and equity

See accompanying notes.

Walmart Inc. Condensed Consolidated Balance Sheets

(Unaudited)

July 31, 2020

January 31, 2020

July 31, 2019

$

16,906 $

9,465 $

9,283

5,111

6,284

5,382

41,084

44,435

44,134

1,895

1,622

2,572

64,996

61,806

61,371

101,182

105,208

104,674

16,869

17,424

17,239

4,843

4,417

3,949

29,542

31,073

31,454

19,950

16,567

16,174

$

237,382 $

236,495 $

234,861

$

357 $

575 $

3,681

46,326

46,973

45,871

3,060

--

3,023

23,768

22,296

20,691

610

280

387

5,553

5,362

4,396

1,734

1,793

1,795

549

511

439

81,957

77,790

80,283

40,959 15,669

4,673 12,927

43,714 16,171 4,307 12,961

44,404 16,079 3,915 13,049

283

284

285

3,197

3,247

2,880

87,614

83,943

78,432

(15,784)

(12,805)

(11,270)

75,310

74,669

70,327

5,887

6,883

6,804

81,197

81,552

77,131

$

237,382 $

236,495 $

234,861

5

Table of Contents

(Amounts in millions) Balances as of February 1, 2020 Consolidated net income Other comprehensive loss, net of income taxes Dividends declared ($2.16 per share) Purchase of Company stock Dividends declared to noncontrolling interest Other Balances as of April 30, 2020 Consolidated net income Other comprehensive income, net of income taxes Dividends to noncontrolling interest Other Balances as of July 31, 2020 See accompanying notes.

Walmart Inc. Condensed Consolidated Statements of Shareholders' Equity

(Unaudited)

Common Stock

Shares Amount 2,832 $ 284

--

--

--

--

--

--

(6)

(1)

--

--

6

1

2,832 $ 284

--

--

--

--

--

--

2

(1)

2,834 $ 283

Capital in Excess of Par Value $ 3,247

-- -- -- (26) -- (238) $ 2,983 -- -- -- 214 $ 3,197

Retained Earnings $ 83,943

3,990 --

(6,117) (666) -- (9)

$ 81,141 6,476 -- -- (3)

$ 87,614

Accumulated

Total

Other

Walmart

Comprehensive Shareholders'

Loss

Equity

$ (12,805) $ 74,669

--

3,990

(3,363)

(3,363)

--

(6,117)

--

(693)

--

--

--

(246)

$ (16,168) $ 68,240

--

6,476

384

384

--

--

--

210

$ (15,784) $ 75,310

Noncontrolling

Interest

$

6,883

84

(712)

--

--

(359)

(26)

$

5,870

(37)

52

(3)

5

$

5,887

Total Equity $ 81,552

4,074 (4,075) (6,117)

(693) (359) (272) $ 74,110 6,439 436

(3) 215 $ 81,197

6

Table of Contents

Walmart Inc. Condensed Consolidated Statements of Shareholders' Equity

(Unaudited)

(Amounts in millions) Balances as of February 1, 2019 Adoption of new accounting standards on February 1, 2019, net of income taxes Consolidated net income Other comprehensive income, net of income taxes Dividends declared ($2.12 per share) Purchase of Company stock Dividends declared to noncontrolling interest Other Balances as of April 30, 2019 Consolidated net income Other comprehensive income (loss), net of income taxes Dividends Purchase of Company stock Dividends to noncontrolling interest Other Balances as of July 31, 2019

Common Stock Shares Amount

2,878 $ 288

Capital in Excess of Par Value $ 2,965

Retained Earnings $ 80,785

Accumulated

Total

Other

Walmart

Comprehensive Shareholders' Noncontrolling

Total

Loss

Equity

Interest

Equity

$ (11,542) $ 72,496 $

7,138 $ 79,634

--

--

--

(266)

--

(266)

(34)

(300)

-- -- -- (21) --

5 2,862 $

-- -- -- (15) -- -- 2,847 $

-- -- -- (2) -- -- 286 $ -- -- -- (2) --

1 285 $

-- -- -- (73) -- (158) 2,734 $ -- -- -- (54) -- 200 2,880 $

3,842 --

(6,071) (2,012)

-- (2) 76,276 $ 3,610 -- 15 (1,499) -- 30 78,432 $

-- 451 -- -- -- -- (11,091) $ -- (179) -- -- -- -- (11,270) $

3,842 451

(6,071) (2,087)

-- (160) 68,205 $ 3,610 (179)

15 (1,555)

-- 231 70,327 $

64

3,906

34

485

--

(6,071)

--

(2,087)

(481)

(481)

(16)

(176)

6,705 $ 74,910

70

3,680

84

(95)

--

15

--

(1,555)

6

6

(61)

170

6,804 $ 77,131

See accompanying notes.

7

Table of Contents

Walmart Inc. Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in millions) Cash flows from operating activities:

Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation and amortization Unrealized (gains) and losses Loss on disposal of business operations Deferred income taxes Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:

Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities

Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Payments for business acquisitions, net of cash acquired Other investing activities

Net cash used in investing activities

Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Other financing activities

Net cash used in financing activities

Effect of exchange rates on cash, cash equivalents and restricted cash

Net increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of period

See accompanying notes.

8

Six Months Ended July 31,

2020

2019

$

10,513 $

7,586

5,562 (4,006)

37 472 305

5,436 (731)

-- 241 348

823 2,466 1,052 1,428

304 18,956

978 220 (1,242) (1,657)

6 11,185

(3,569) 83 --

(175) 27

(3,634)

(4,871) 128 833 (56) 142

(3,824)

(178) --

(2,937) (3,058)

(723) (66)

(852) (7,814)

(1,564) 4,020 (407) (3,036) (3,707) (259) (578) (5,531)

(69)

(266)

7,439

9,515

$

16,954 $

1,564 7,756 9,320

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