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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