Walmart Earnings 2020-10-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

wmt-20201031

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 October 31, 2020.


☐			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		71-0415188
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

702 S.W. 8th Street		72716
Bentonville	AR
(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

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

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.10 per share

WMT

New York Stock Exchange

1.900% Notes Due 2022

WMT22

New York Stock Exchange

2.550% Notes Due 2026

WMT26

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

☒

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 2,829,285,926 shares of common stock outstanding as of November 30, 2020.

Table of Contents

Walmart Inc.

Form 10-Q

For the Quarterly Period Ended October 31, 2020

Table of Contents

Table of C ontents

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

Walmart Inc.

Condensed Consolidated Statements of Income

(Unaudited)


	Three Months Ended October 31,				Nine Months Ended October 31,
(Amounts in millions, except per share data)	2020		2019		2020		2019
Revenues:
Net sales	$	133,752	$	126,981	$	404,248	$	379,318
Membership and other income	956		1,010		2,824		2,975
Total revenues	134,708		127,991		407,072		382,293
Costs and expenses:
Cost of sales	100,339		95,900		305,054		286,857
Operating, selling, general and administrative expenses	28,591		27,373		84,957		80,190
Operating income	5,778		4,718		17,061		15,246
Interest:
Debt	455		547		1,542		1,693
Finance lease	86		86		249		254
Interest income	(25)		(44)		(91)		(148)
Interest, net	516		589		1,700		1,799

Other (gains) and losses	(1,853)		(244)		(5,796)		(996)
Income before income taxes	7,115		4,373		21,157		14,443
Provision for income taxes	1,914		1,052		5,443		3,536


Consolidated net income	5,201		3,321		15,714		10,907
Consolidated net income attributable to noncontrolling interest	(66)		(33)		(113)		(167)
Consolidated net income attributable to Walmart	$	5,135	$	3,288	$	15,601	$	10,740





Net income per common share:
Basic net income per common share attributable to Walmart	$	1.81	$	1.16	$	5.51	$	3.76




Diluted net income per common share attributable to Walmart	1.80		1.15		5.48		3.74

Weighted-average common shares outstanding:
Basic	2,833		2,843		2,832		2,855
Diluted	2,849		2,861		2,849		2,872

Dividends declared per common share	$	—	$	—	$	2.16	$	2.12

See accompanying notes.

Table of C ontents

Walmart Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended October 31,				Nine Months Ended October 31,
(Amounts in millions)	2020		2019		2020		2019
Consolidated net income	$	5,201	$	3,321	$	15,714	$	10,907
Consolidated net income attributable to noncontrolling interest	(66)		(33)		(113)		(167)

Consolidated net income attributable to Walmart	5,135		3,288		15,601		10,740

Other comprehensive income (loss), net of income taxes
Currency translation and other	1,262		(1,188)		(2,408)		(762)
Net investment hedges	(1)		(113)		(35)		135
Cash flow hedges	—		(12)		34		(301)
Minimum pension liability	16		8		47		13

Other comprehensive income (loss), net of income taxes	1,277		(1,305)		(2,362)		(915)
Other comprehensive (income) loss attributable to noncontrolling interest	(109)		193		551		75

Other comprehensive income (loss) attributable to Walmart	1,168		(1,112)		(1,811)		(840)

Comprehensive income, net of income taxes	6,478		2,016		13,352		9,992
Comprehensive (income) loss attributable to noncontrolling interest	(175)		160		438		(92)

Comprehensive income attributable to Walmart	$	6,303	$	2,176	$	13,790	$	9,900

See accompanying notes.

Table of C ontents

Walmart Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


	October 31,		January 31,		October 31,
(Amounts in millions)	2020		2020		2019
ASSETS
Current assets:
Cash and cash equivalents	$	14,325	$	9,465	$	8,606
Receivables, net	5,770		6,284		5,612
Inventories	51,842		44,435		51,546
Prepaid expenses and other	1,665		1,622		2,148

Total current assets	73,602		61,806		67,912



Property and equipment, net	102,232		105,208		104,326
Operating lease right-of-use assets	17,128		17,424		16,944
Finance lease right-of-use assets, net	4,929		4,417		4,155

Goodwill	30,236		31,073		30,716
Other long-term assets	22,736		16,567		15,777
Total assets	$	250,863	$	236,495	$	239,830

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	240	$	575	$	4,926
Accounts payable	54,152		46,973		49,750
Dividends payable	1,529		—		1,507
Accrued liabilities	24,995		22,296		20,973
Accrued income taxes	548		280		327
Long-term debt due within one year	4,358		5,362		4,093
Operating lease obligations due within one year	1,725		1,793		1,740
Finance lease obligations due within one year	574		511		468


Total current liabilities	88,121		77,790		83,784

Long-term debt	40,849		43,714		44,912
Long-term operating lease obligations	15,982		16,171		15,741
Long-term finance lease obligations	4,750		4,307		4,068

Deferred income taxes and other	13,657		12,961		13,018



Commitments and contingencies

Equity:
Common stock	283		284		284
Capital in excess of par value	3,485		3,247		3,091
Retained earnings	92,279		83,943		80,656
Accumulated other comprehensive loss	(14,616)		(12,805)		(12,382)
Total Walmart shareholders' equity	81,431		74,669		71,649
Noncontrolling interest	6,073		6,883		6,658
Total equity	87,504		81,552		78,307
Total liabilities and equity	$	250,863	$	236,495	$	239,830

See accompanying notes.

Table of C ontents

Walmart Inc.

Condensed Consolidated Statements of Shareholders' Equity

(Unaudited)


								Accumulated		Total
				Capital in				Other		Walmart
(Amounts in millions)	Common Stock			Excess of		Retained		Comprehensive		Shareholders'		Noncontrolling		Total
	Shares	Amount		Par Value		Earnings		Loss		Equity		Interest		Equity
Balances as of February 1, 2020	2,832	$	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)
Other	6	1		(238)		(9)		—		(246)		(26)		(272)
Balances as of April 30, 2020	2,832	$	284	$	2,983	$	81,141	$	(16,168)	$	68,240	$	5,870	$	74,110
Consolidated net income	—	—		—		6,476		—		6,476		(37)		6,439
Other comprehensive income, net of income taxes	—	—		—		—		384		384		52		436






Dividends to noncontrolling interest	—	—		—		—		—		—		(3)		(3)
Other	2	(1)		214		(3)		—		210		5		215
Balances as of July 31, 2020	2,834	$	283	$	3,197	$	87,614	$	(15,784)	$	75,310	$	5,887	$	81,197

Consolidated net income	—	—		—		5,135		—		5,135		66		5,201
Other comprehensive income, net of income taxes	—	—		—		—		1,168		1,168		109		1,277





Purchase of Company stock	(4)	—		(17)		(469)		—		(486)		—		(486)
Dividends to noncontrolling interest	—	—		—		—		—		—		(8)		(8)
Other	1	—		305		(1)		—		304		19		323










Balances as of October 31, 2020	2,831	$	283	$	3,485	$	92,279	$	(14,616)	$	81,431	$	6,073	$	87,504

See accompanying notes.

Table of C ontents

Walmart Inc.

Condensed Consolidated Statements of Shareholders' Equity

(Unaudited)


								Accumulated		Total
				Capital in				Other		Walmart
(Amounts in millions)	Common Stock			Excess of		Retained		Comprehensive		Shareholders'		Noncontrolling		Total
	Shares	Amount		Par Value		Earnings		Loss		Equity		Interest		Equity
Balances as of February 1, 2019	2,878	$	288	$	2,965	$	80,785	$	(11,542)	$	72,496	$	7,138	$	79,634
Adoption of new accounting standards on February 1, 2019, net of income taxes	—	—		—		(266)		—		(266)		(34)		(300)
Consolidated net income	—	—		—		3,842		—		3,842		64		3,906
Other comprehensive income, net of income taxes	—	—		—		—		451		451		34		485




Dividends declared ($2.12 per share)	—	—		—		(6,071)		—		(6,071)		—		(6,071)
Purchase of Company stock	(21)	(2)		(73)		(2,012)		—		(2,087)		—		(2,087)
Dividends declared to noncontrolling interest	—	—		—		—		—		—		(481)		(481)
Other	5	—		(158)		(2)		—		(160)		(16)		(176)
Balances as of April 30, 2019	2,862	$	286	$	2,734	$	76,276	$	(11,091)	$	68,205	$	6,705	$	74,910
Consolidated net income	—	—		—		3,610		—		3,610		70		3,680
Other comprehensive income (loss), net of income taxes	—	—		—		—		(179)		(179)		84		(95)




Dividends	—	—		—		15		—		15		—		15
Purchase of Company stock	(15)	(2)		(54)		(1,499)		—		(1,555)		—		(1,555)
Dividends to noncontrolling interest	—	—		—		—		—		—		6		6
Other	—	1		200		30		—		231		(61)		170
Balances as of July 31, 2019	2,847	$	285	$	2,880	$	78,432	$	(11,270)	$	70,327	$	6,804	$	77,131

Consolidated net income	—	—		—		3,288		—		3,288		33		3,321
Other comprehensive loss, net of income taxes	—	—		—		—		(1,112)		(1,112)		(193)		(1,305)




Dividends	—	—		—		5		—		5		—		5
Purchase of Company stock	(10)	(1)		(39)		(1,068)		—		(1,108)		—		(1,108)
Dividends to noncontrolling interest	—	—		—		—		—		—		3		3
Other	2	—		250		(1)		—		249		11		260
Balances as of October 31, 2019	2,839	$	284	$	3,091	$	80,656	$	(12,382)	$	71,649	$	6,658	$	78,307

See accompanying notes.

Table of C ontents

Walmart Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended October 31,
(Amounts in millions)	2020		2019
Cash flows from operating activities:
Consolidated net income	$	15,714	$	10,907


Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	8,333		8,159
Unrealized (gains) and losses	(6,883)		(911)
Losses and (gains) on disposal of business operations	1,028		(1)
Deferred income taxes	1,246		574

Other operating activities	930		938
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:
Receivables, net	165		661
Inventories	(8,260)		(7,558)
Accounts payable	8,553		2,925
Accrued liabilities	1,796		(1,107)
Accrued income taxes	258		(48)
Net cash provided by operating activities	22,880		14,539

Cash flows from investing activities:
Payments for property and equipment	(6,438)		(7,765)
Proceeds from the disposal of property and equipment	99		218
Proceeds from the disposal of certain operations	12		833

Payments for business acquisitions, net of cash acquired	(180)		(56)
Other investing activities	—		485
Net cash used in investing activities	(6,507)		(6,285)

Price	115.63	EPS	5
Shares	2,832	P/E	22
MCap	327,501	P/FCF	13
Net Debt	39,611	EBIT	24,325
TEV	367,112	TEV/EBIT	15
TTM 2020-01-31, in MM, except price, ratios

10-Q	2020-10-31	Filed 2020-12-02
10-Q	2020-07-31	Filed 2020-09-02
10-Q	2020-04-30	Filed 2020-06-03
10-K	2020-01-31	Filed 2020-03-20
10-Q	2019-10-31	Filed 2019-12-04
10-Q	2019-07-31	Filed 2019-09-06
10-Q	2019-04-30	Filed 2019-06-07
10-K	2019-01-31	Filed 2019-03-28
10-Q	2018-10-31	Filed 2018-11-30
10-Q	2018-07-31	Filed 2018-09-06
10-Q	2018-04-30	Filed 2018-06-04
10-K	2018-01-31	Filed 2018-03-30
10-Q	2017-10-31	Filed 2017-12-01
10-Q	2017-07-31	Filed 2017-08-31
10-Q	2017-04-30	Filed 2017-06-02
10-K	2017-01-31	Filed 2017-03-31
10-Q	2016-10-31	Filed 2016-12-01
10-Q	2016-07-31	Filed 2016-08-31
10-Q	2016-04-30	Filed 2016-06-03
10-K	2016-01-31	Filed 2016-03-30
10-Q	2015-10-31	Filed 2015-12-02
10-Q	2015-07-31	Filed 2015-09-09
10-Q	2015-04-30	Filed 2015-06-05
10-K	2015-01-31	Filed 2015-04-01
10-Q	2014-10-31	Filed 2014-12-01
10-Q	2014-07-31	Filed 2014-09-05
10-Q	2014-04-30	Filed 2014-06-06
10-K	2014-01-31	Filed 2014-03-21
10-Q	2013-10-31	Filed 2013-12-06
10-Q	2013-07-31	Filed 2013-09-05
10-Q	2013-04-30	Filed 2013-06-07
10-K	2013-01-31	Filed 2013-03-26
10-Q	2012-10-31	Filed 2012-12-04
10-Q	2012-07-31	Filed 2012-09-06
10-Q	2012-04-30	Filed 2012-06-01
10-K	2012-01-31	Filed 2012-03-27
10-Q	2011-10-31	Filed 2011-12-08
10-Q	2011-07-31	Filed 2011-09-01
10-Q	2011-04-30	Filed 2011-06-03
10-K	2011-01-31	Filed 2011-03-30
10-Q	2010-10-31	Filed 2010-12-06
10-Q	2010-07-31	Filed 2010-09-01
10-Q	2010-04-30	Filed 2010-06-04
10-K	2010-01-31	Filed 2010-03-30

8-K	2020-11-17
8-K	2020-11-15
8-K	2020-11-06
8-K	2020-10-22
8-K	2020-10-02
8-K	2020-09-19
8-K	2020-09-14
8-K	2020-09-13
8-K	2020-08-18
8-K	2020-06-03
8-K	2020-05-19
8-K	2020-02-18
8-K	2019-11-19
8-K	2019-11-14
8-K	2019-11-14
8-K	2019-11-04
8-K	2019-10-18
8-K	2019-10-09
8-K	2019-09-19
8-K	2019-08-15
8-K	2019-07-23
8-K	2019-06-20
8-K	2019-06-05
8-K	2019-05-16
8-K	2019-04-16
8-K	2019-02-19
8-K	2019-02-07
8-K	2018-12-07
8-K	2018-11-15
8-K	2018-11-13
8-K	2018-10-26
8-K	2018-10-16
8-K	2018-08-16
8-K	2018-06-20
8-K	2018-06-04
8-K	2018-05-30
8-K	2018-05-17
8-K	2018-05-09
8-K	2018-05-09
8-K	2018-04-30
8-K	2018-02-20
8-K	2018-02-07
8-K	2018-02-01
8-K	2018-01-23
8-K	2018-01-16
8-K	2018-01-09

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EX-31.2	wmt312fy21q3.htm
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EX-32.2	wmt322fy21q3.htm
EX-99.1	wmt991fy21q3.htm


			Page
Part I. Financial Information
	Item 1. Financial Statements
		Condensed Consolidated Statements of Income	3
		Condensed Consolidated Statements of Comprehensive Income	4
		Condensed Consolidated Balance Sheets	5
		Condensed Consolidated Statements of Shareholders' Equity	6
		Condensed Consolidated Statements of Cash Flows	8
		Notes to Condensed Consolidated Financial Statements	9
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		16
	Item 3. Quantitative and Qualitative Disclosures About Market Risk		27
	Item 4. Controls and Procedures		28

Part II. Other Information
	Item 1. Legal Proceedings		29
	Item 1A. Risk Factors		30
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		30
	Item 5. Other Information		30
	Item 6. Exhibits		34

Signatures			35

WMT 10Q Quarterly Report

Walmart Earnings 2020-10-31