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 ~~July 31, 2022.~~April 30, 2023.


☐			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

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

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

2.550% Notes Due 2026

WMT26

New 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, a 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 ~~2,714,237,937~~2,692,835,112 shares of common stock outstanding as of ~~August~~May 31, ~~2022.~~2023.

Table of Contents

Walmart Inc.

Form 10-Q

For the Quarterly Period Ended ~~July 31, 2022~~April 30, 2023

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

Walmart Inc.

Condensed Consolidated Statements of Income

(Unaudited)


		Three Months Ended July 31,				Six Months Ended July 31,					Three Months Ended April 30,
(Amounts in millions, except per share data)	(Amounts in millions, except per share data)	2022		2021		2022		2021		(Amounts in millions, except per share data)	2023		2022
Revenues:	Revenues:									Revenues:
Net sales	Net sales	$	151,381	$	139,871	$	291,669	$	277,030	Net sales	$	151,004	$	140,288
Membership and other income	Membership and other income	1,478		1,177		2,759		2,328		Membership and other income	1,297		1,281
Total revenues	Total revenues	152,859		141,048		294,428		279,358		Total revenues	152,301		141,569
Costs and expenses:	Costs and expenses:									Costs and expenses:
Cost of sales	Cost of sales	115,838		105,183		222,685		208,455		Cost of sales	115,284		106,847
Operating, selling, general and administrative expenses	Operating, selling, general and administrative expenses	30,167		28,511		59,571		56,640		Operating, selling, general and administrative expenses	30,777		29,404
Operating income	Operating income	6,854		7,354		12,172		14,263		Operating income	6,240		5,318
Interest:	Interest:									Interest:
Debt	Debt	395		437		767		918		Debt	568		372
Finance lease	Finance lease	84		78		167		163		Finance lease	96		83
Interest income	Interest income	(31)		(37)		(67)		(67)		Interest income	(107)		(36)
Interest, net	Interest, net	448		478		867		1,014		Interest, net	557		419

Other (gains) and losses	Other (gains) and losses	(238)		953		1,760		3,482		Other (gains) and losses	2,995		1,998
Income before income taxes	Income before income taxes	6,644		5,923		9,545		9,767		Income before income taxes	2,688		2,901
Provision for income taxes	Provision for income taxes	1,497		1,559		2,295		2,592		Provision for income taxes	792		798

Consolidated net income	Consolidated net income	5,147		4,364		7,250		7,175		Consolidated net income	1,896		2,103
Consolidated net loss (income) attributable to noncontrolling interest		2		(88)		(47)		(169)
Consolidated net income attributable to noncontrolling interest										Consolidated net income attributable to noncontrolling interest	(223)		(49)
Consolidated net income attributable to Walmart	Consolidated net income attributable to Walmart	$	5,149	$	4,276	$	7,203	$	7,006	Consolidated net income attributable to Walmart	$	1,673	$	2,054

Net income per common share:	Net income per common share:									Net income per common share:
Basic net income per common share attributable to Walmart	Basic net income per common share attributable to Walmart	$	1.88	$	1.53	$	2.62	$	2.50	Basic net income per common share attributable to Walmart	$	0.62	$	0.75

Diluted net income per common share attributable to Walmart	Diluted net income per common share attributable to Walmart	1.88		1.52		2.61		2.48		Diluted net income per common share attributable to Walmart	0.62		0.74

Weighted-average common shares outstanding:	Weighted-average common shares outstanding:									Weighted-average common shares outstanding:
Basic	Basic	2,736		2,799		2,745		2,807		Basic	2,694		2,754
Diluted	Diluted	2,745		2,812		2,755		2,820		Diluted	2,704		2,765

Dividends declared per common share	Dividends declared per common share	$	—	$	—	$	2.24	$	2.20	Dividends declared per common share	$	2.28	$	2.24

See accompanying notes.

Table of Contents

Walmart Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


		Three Months Ended July 31,				Six Months Ended July 31,					Three Months Ended April 30,
(Amounts in millions)	(Amounts in millions)	2022		2021		2022		2021		(Amounts in millions)	2023		2022
Consolidated net income	Consolidated net income	$	5,147	$	4,364	$	7,250	$	7,175	Consolidated net income	$	1,896	$	2,103
Consolidated net loss (income) attributable to noncontrolling interest		2		(88)		(47)		(169)
Consolidated net income attributable to noncontrolling interest										Consolidated net income attributable to noncontrolling interest	(223)		(49)

Consolidated net income attributable to Walmart	Consolidated net income attributable to Walmart	5,149		4,276		7,203		7,006		Consolidated net income attributable to Walmart	1,673		2,054

Other comprehensive (loss) income, net of income taxes
Other comprehensive income (loss), net of income taxes										Other comprehensive income (loss), net of income taxes
Currency translation and other	Currency translation and other	(1,380)		201		(1,148)		3,160		Currency translation and other	809		232
Net investment hedges	Net investment hedges	—		—		—		(1,202)		Net investment hedges	—		—
Cash flow hedges	Cash flow hedges	(293)		(155)		(251)		(135)		Cash flow hedges	(69)		42
Minimum pension liability	Minimum pension liability	2		2		3		1,971		Minimum pension liability	2		1

Other comprehensive (loss) income, net of income taxes		(1,671)		48		(1,396)		3,794
Other comprehensive loss (income) attributable to noncontrolling interest		275		(78)		268		(4)
Other comprehensive income (loss), net of income taxes										Other comprehensive income (loss), net of income taxes	742		275
Other comprehensive (income) loss attributable to noncontrolling interest										Other comprehensive (income) loss attributable to noncontrolling interest	(209)		(7)

Other comprehensive (loss) income attributable to Walmart		(1,396)		(30)		(1,128)		3,790
Other comprehensive income (loss) attributable to Walmart										Other comprehensive income (loss) attributable to Walmart	533		268

Comprehensive income, net of income taxes	Comprehensive income, net of income taxes	3,476		4,412		5,854		10,969		Comprehensive income, net of income taxes	2,638		2,378
Comprehensive loss (income) attributable to noncontrolling interest		277		(166)		221		(173)
Comprehensive income attributable to noncontrolling interest										Comprehensive income attributable to noncontrolling interest	(432)		(56)

Comprehensive income attributable to Walmart	Comprehensive income attributable to Walmart	$	3,753	$	4,246	$	6,075	$	10,796	Comprehensive income attributable to Walmart	$	2,206	$	2,322

See accompanying notes.

Table of Contents

Walmart Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


		July 31,		January 31,		July 31,			April 30,		January 31,		April 30,
(Amounts in millions)	(Amounts in millions)	2022		2022		2021		(Amounts in millions)	2023		2023		2022
ASSETS	ASSETS							ASSETS
Current assets:	Current assets:							Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	13,923	$	14,760	$	22,831	Cash and cash equivalents	$	10,575	$	8,625	$	11,817
Receivables, net	Receivables, net	7,522		8,280		6,103		Receivables, net	7,647		7,933		7,674
Inventories	Inventories	59,921		56,511		47,754		Inventories	56,932		56,576		61,229
Prepaid expenses and other	Prepaid expenses and other	2,798		1,519		1,555		Prepaid expenses and other	3,357		2,521		2,500

Total current assets	Total current assets	84,164		81,070		78,243		Total current assets	78,511		75,655		83,220

Property and equipment, net	Property and equipment, net	96,006		94,515		91,621		Property and equipment, net	102,335		100,760		94,741
Operating lease right-of-use assets	Operating lease right-of-use assets	13,872		13,758		13,868		Operating lease right-of-use assets	13,679		13,555		13,971
Finance lease right-of-use assets, net	Finance lease right-of-use assets, net	4,514		4,351		4,109		Finance lease right-of-use assets, net	5,124		4,919		4,505

Goodwill	Goodwill	28,664		29,014		29,159		Goodwill	28,306		28,174		29,438
Other long-term assets	Other long-term assets	19,979		22,152		21,552		Other long-term assets	17,098		20,134		20,267
Total assets	Total assets	$	247,199	$	244,860	$	238,552	Total assets	$	245,053	$	243,197	$	246,142

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY	LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY							LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
Current liabilities:	Current liabilities:							Current liabilities:
Short-term borrowings	Short-term borrowings	$	10,634	$	410	$	671	Short-term borrowings	$	1,711	$	372	$	11,432
Accounts payable	Accounts payable	54,191		55,261		49,601		Accounts payable	54,268		53,742		52,926
Dividends payable	Dividends payable	3,049		—		3,109		Dividends payable	4,602		—		4,631
Accrued liabilities	Accrued liabilities	23,843		26,060		23,915		Accrued liabilities	27,527		31,126		21,061
Accrued income taxes	Accrued income taxes	868		851		267		Accrued income taxes	1,325		727		904
Long-term debt due within one year	Long-term debt due within one year	5,316		2,803		1,617		Long-term debt due within one year	3,975		4,191		3,580
Operating lease obligations due within one year	Operating lease obligations due within one year	1,464		1,483		1,441		Operating lease obligations due within one year	1,490		1,473		1,485
Finance lease obligations due within one year	Finance lease obligations due within one year	534		511		501		Finance lease obligations due within one year	607		567		511

Total current liabilities	Total current liabilities	99,899		87,379		81,122		Total current liabilities	95,505		92,198		96,530

Long-term debt	Long-term debt	29,801		34,864		39,581		Long-term debt	38,120		34,649		32,174
Long-term operating lease obligations	Long-term operating lease obligations	13,140		13,009		13,116		Long-term operating lease obligations	12,925		12,828		13,226
Long-term finance lease obligations	Long-term finance lease obligations	4,420		4,243		3,952		Long-term finance lease obligations	5,039		4,843		4,409

Deferred income taxes and other	Deferred income taxes and other	14,092		13,474		13,654		Deferred income taxes and other	13,999		14,688		13,943

Commitments and contingencies	Commitments and contingencies							Commitments and contingencies

Redeemable noncontrolling interest	Redeemable noncontrolling interest	260		—		—		Redeemable noncontrolling interest	234		237		260

Equity:	Equity:							Equity:
Common stock	Common stock	272		276		278		Common stock	269		269		275
Capital in excess of par value	Capital in excess of par value	4,672		4,839		3,655		Capital in excess of par value	5,248		4,969		4,587
Retained earnings	Retained earnings	82,519		86,904		84,572		Retained earnings	78,035		83,135		80,532
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(9,894)		(8,766)		(7,976)		Accumulated other comprehensive loss	(11,147)		(11,680)		(8,498)
Total Walmart shareholders' equity	Total Walmart shareholders' equity	77,569		83,253		80,529		Total Walmart shareholders' equity	72,405		76,693		76,896
Nonredeemable noncontrolling interest	Nonredeemable noncontrolling interest	8,018		8,638		6,598		Nonredeemable noncontrolling interest	6,826		7,061		8,704
Total equity	Total equity	85,587		91,891		87,127		Total equity	79,231		83,754		85,600
Total liabilities, redeemable noncontrolling interest, and equity	Total liabilities, redeemable noncontrolling interest, and equity	$	247,199	$	244,860	$	238,552	Total liabilities, redeemable noncontrolling interest, and equity	$	245,053	$	243,197	$	246,142

See accompanying notes.

Table of Contents

Walmart Inc.

Condensed Consolidated Statements of Shareholders' Equity

(Unaudited)


									Accumulated		Total														Accumulated		Total
					Capital in				Other		Walmart		Nonredeemable								Capital in				Other		Walmart		Nonredeemable
(Amounts in millions)	(Amounts in millions)	Common Stock			Excess of		Retained		Comprehensive		Shareholders'		Noncontrolling		Total		(Amounts in millions)	Common Stock			Excess of		Retained		Comprehensive		Shareholders'		Noncontrolling		Total
		Shares	Amount		Par Value		Earnings		Loss		Equity		Interest		Equity			Shares	Amount		Par Value		Earnings		Loss		Equity		Interest		Equity
Balances as of February 1, 2022		2,761	$	276	$	4,839	$	86,904	$	(8,766)	$	83,253	$	8,638	$	91,891
Balances as of February 1, 2023																	Balances as of February 1, 2023	2,693	$	269	$	4,969	$	83,135	$	(11,680)	$	76,693	$	7,061	$	83,754
Consolidated net income	Consolidated net income	—	—		—		2,054		—		2,054		49		2,103		Consolidated net income	—	—		—		1,673		—		1,673		223		1,896
Other comprehensive income, net of income taxes	Other comprehensive income, net of income taxes	—	—		—		—		268		268		7		275		Other comprehensive income, net of income taxes	—	—		—		—		533		533		209		742
Dividends declared ($2.24 per share)		—	—		—		(6,173)		—		(6,173)		—		(6,173)
Dividends declared ($2.28 per share)																	Dividends declared ($2.28 per share)	—	—		—		(6,139)		—		(6,139)		—		(6,139)
Purchase of Company stock	Purchase of Company stock	(17)	(2)		(125)		(2,249)		—		(2,376)		—		(2,376)		Purchase of Company stock	(5)	(1)		(38)		(632)		—		(671)		—		(671)

Dividends declared to noncontrolling interest																	Dividends declared to noncontrolling interest	—	—		—		—		—		—		(761)		(761)
Sale of subsidiary stock	Sale of subsidiary stock	—	—		24		—		—		24		11		35		Sale of subsidiary stock	—	—		389		—		—		389		94		483
Other	Other	4	1		(151)		(4)		—		(154)		(1)		(155)		Other	6	1		(72)		(2)		—		(73)		—		(73)
Balances as of April 30, 2022		2,748	$	275	$	4,587	$	80,532	$	(8,498)	$	76,896	$	8,704	$	85,600
Consolidated net income		—	—		—		5,149		—		5,149		(2)		5,147
Other comprehensive (loss), net of income taxes		—	—		—		—		(1,396)		(1,396)		(275)		(1,671)

Purchase of Company stock		(26)	(3)		(182)		(3,201)		—		(3,386)		—		(3,386)
Dividends to noncontrolling interest		—	—		—		—		—		—		(434)		(434)
Sale of subsidiary stock		—	—		8		—		—		8		2		10
Other		—	—		259		39		—		298		23		321
Balances as of July 31, 2022		2,722	272		4,672		82,519		(9,894)		77,569		8,018		85,587
Balances as of April 30, 2023																	Balances as of April 30, 2023	2,694	$	269	$	5,248	$	78,035	$	(11,147)	$	72,405	$	6,826	$	79,231

See accompanying notes.


									Accumulated		Total														Accumulated		Total
					Capital in				Other		Walmart		Nonredeemable								Capital in				Other		Walmart		Nonredeemable
(Amounts in millions)	(Amounts in millions)	Common Stock			Excess of		Retained		Comprehensive		Shareholders'		Noncontrolling		Total		(Amounts in millions)	Common Stock			Excess of		Retained		Comprehensive		Shareholders'		Noncontrolling		Total
		Shares	Amount		Par Value		Earnings		Loss		Equity		Interest		Equity			Shares	Amount		Par Value		Earnings		Loss		Equity		Interest		Equity
Balances as of February 1, 2021		2,821	$	282	$	3,646	$	88,763	$	(11,766)	$	80,925	$	6,606	$	87,531
Balances as of February 1, 2022																	Balances as of February 1, 2022	2,761	$	276	$	4,839	$	86,904	$	(8,766)	$	83,253	$	8,638	$	91,891
Consolidated net income	Consolidated net income	—	—		—		2,730		—		2,730		81		2,811		Consolidated net income	—	—		—		2,054		—		2,054		49		2,103
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)
Other comprehensive income, net of income taxes																	Other comprehensive income, net of income taxes	—	—		—		—		268		268		7		275
Dividends declared ($2.24 per share)																	Dividends declared ($2.24 per share)	—	—		—		(6,173)		—		(6,173)		—		(6,173)
Purchase of Company stock	Purchase of Company stock	(21)	(2)		(112)		(2,718)		—		(2,832)		—		(2,832)		Purchase of Company stock	(17)	(2)		(125)		(2,249)		—		(2,376)		—		(2,376)
Dividends to noncontrolling interest		—	—		—		—		—		—		(408)		(408)

Sale of subsidiary stock	Sale of subsidiary stock	—	—		18		—		—		18		57		75		Sale of subsidiary stock	—	—		24		—		—		24		11		35
Other	Other	5	—		(128)		2		—		(126)		(5)		(131)		Other	4	1		(151)		(4)		—		(154)		(1)		(155)
Balances as of April 30, 2021		2,805	$	280	$	3,424	$	82,577	$	(7,946)	$	78,335	$	6,257	$	84,592
Consolidated net income		—	—		—		4,276		—		4,276		88		4,364
Other comprehensive (loss) income, net of income taxes		—	—		—		—		(30)		(30)		78		48

Purchase of Company stock		(17)	(2)		(94)		(2,273)		—		(2,369)		—		(2,369)
Dividends to noncontrolling interest		—	—		—		—		—		—		(10)		(10)
Sale of subsidiary stock		—	—		6		—		—		6		171		177
Other		3	—		319		(8)		—		311		14		325
Balances as of July 31, 2021		2,791	$	278	$	3,655	$	84,572	$	(7,976)	$	80,529	$	6,598	$	87,127
Balances as of April 30, 2022																	Balances as of April 30, 2022	2,748	$	275	$	4,587	$	80,532	$	(8,498)	$	76,896	$	8,704	$	85,600

See accompanying notes.

Table of Contents

Walmart Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


		Six Months Ended July 31,					Three Months Ended April 30,
(Amounts in millions)	(Amounts in millions)	2022		2021		(Amounts in millions)	2023		2022
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Consolidated net income	Consolidated net income	$	7,250	$	7,175	Consolidated net income	$	1,896	$	2,103

Adjustments to reconcile consolidated net income to net cash provided by operating activities:	Adjustments to reconcile consolidated net income to net cash provided by operating activities:					Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	5,379		5,302		Depreciation and amortization	2,845		2,680
Net unrealized and realized (gains) and losses		1,988		3,019
Losses on disposal of business operations		—		433
Investment (gains) and losses, net						Investment (gains) and losses, net	3,062		1,989

Deferred income taxes	Deferred income taxes	111		(385)		Deferred income taxes	(725)		(69)

Other operating activities	Other operating activities	244		606		Other operating activities	249		(59)
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:	Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:					Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:
Receivables, net	Receivables, net	874		452		Receivables, net	376		837
Inventories	Inventories	(3,730)		(2,725)		Inventories	(154)		(4,699)
Accounts payable	Accounts payable	(453)		119		Accounts payable	971		(1,640)
Accrued liabilities	Accrued liabilities	(2,439)		(1,412)		Accrued liabilities	(4,447)		(4,949)
Accrued income taxes	Accrued income taxes	16		(161)		Accrued income taxes	560		49
Net cash provided by operating activities		9,240		12,423
Net cash provided by (used in) operating activities						Net cash provided by (used in) operating activities	4,633		(3,758)

Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Payments for property and equipment	Payments for property and equipment	(7,492)		(5,019)		Payments for property and equipment	(4,429)		(3,539)
Proceeds from the disposal of property and equipment	Proceeds from the disposal of property and equipment	72		176		Proceeds from the disposal of property and equipment	47		35
Proceeds from disposal of certain operations, net of divested cash		—		7,935
Proceeds from disposal of certain operations						Proceeds from disposal of certain operations	48		—

Payments for business acquisitions, net of cash acquired	Payments for business acquisitions, net of cash acquired	(616)		(248)		Payments for business acquisitions, net of cash acquired	—		(598)
Other investing activities	Other investing activities	(548)		(442)		Other investing activities	(526)		(456)
Net cash (used in) provided by investing activities		(8,584)		2,402
Net cash used in investing activities						Net cash used in investing activities	(4,860)		(4,558)

Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Net change in short-term borrowings	Net change in short-term borrowings	10,230		441		Net change in short-term borrowings	1,343		10,995

Proceeds from issuance of long-term debt						Proceeds from issuance of long-term debt	4,967		—
Repayments of long-term debt	Repayments of long-term debt	(1,439)		(3,010)		Repayments of long-term debt	(1,784)		(926)

Dividends paid	Dividends paid	(3,081)		(3,091)		Dividends paid	(1,538)		(1,543)
Purchase of Company stock	Purchase of Company stock	(5,747)		(5,200)		Purchase of Company stock	(686)		(2,408)

Sale of subsidiary stock	Sale of subsidiary stock	45		252		Sale of subsidiary stock	483		35
Other financing activities	Other financing activities	(1,408)		(951)		Other financing activities	(845)		(838)
Net cash used in financing activities		(1,400)		(11,559)
Net cash provided by financing activities						Net cash provided by financing activities	1,940		5,315

Effect of exchange rates on cash, cash equivalents and restricted cash	Effect of exchange rates on cash, cash equivalents and restricted cash	(100)		(21)		Effect of exchange rates on cash, cash equivalents and restricted cash	154		49

Net (decrease) increase in cash, cash equivalents and restricted cash		(844)		3,245
Change in cash and cash equivalents reclassified from assets held for sale		—		1,848
Net increase (decrease) in cash, cash equivalents and restricted cash						Net increase (decrease) in cash, cash equivalents and restricted cash	1,867		(2,952)

Cash, cash equivalents and restricted cash at beginning of year	Cash, cash equivalents and restricted cash at beginning of year	14,834		17,788		Cash, cash equivalents and restricted cash at beginning of year	8,841		14,834
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period	$	13,990	$	22,881	Cash, cash equivalents and restricted cash at end of period	$	10,708	$	11,882

See accompanying notes.

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~~2023 ("fiscal ~~2022"~~2023"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K.

The Company's Condensed 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 ~~July 2022~~April 2023 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~~Supplier Financing Program Obligations

~~Noncontrolling interests~~In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which ~~are redeemable outside~~enhances the transparency about the use of supplier finance programs for investors and other allocators of capital. The Company adopted this ASU as of February 1, 2023, other than the roll-forward disclosure requirement which the Company will adopt in fiscal 2025.

The Company has supplier financing programs with financial institutions, in which the Company agrees to pay the financial institution the stated amount of confirmed invoices on the invoice due date for participating suppliers. Participation in these programs is optional and solely up to the supplier, who negotiate the terms of the arrangement directly with the financial institution and may allow early payment. Supplier participation in these programs has no bearing on the Company's ~~control at fixed~~amounts due. The payment terms that the Company has with participating suppliers under these programs generally range between 30 and 90 days. The Company does not have an economic interest in a supplier's participation in the program or ~~determinable prices~~a direct financial relationship with the financial institution funding the program. The Company is responsible for ensuring that participating financial institutions are paid according to the terms negotiated with the supplier, regardless of whether the supplier elects to receive early payment from the financial institution. The outstanding payment obligations to financial institutions under these programs were $4.7 billion, $5.2 billion and ~~dates~~$6.0 billion, as of April 30, 2023, January 31, 2023 and April 30, 2022, respectively. These obligations are ~~presented as temporary equity on~~primarily recorded within the accounts payable account within the Condensed Consolidated Balance Sheets. ~~Redeemable noncontrolling interests are recorded at~~The activity related to these programs is reflected within the ~~greater~~operating activities section of the ~~redemption fair value or the carrying value~~Condensed Consolidated Statements of the noncontrolling interest and adjusted each reporting period for income, loss and any distributions made. As of July 31, 2022, the Company has a redeemable noncontrolling interest related to an 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 beginning in December 2027 and annually thereafter.Cash Flows.

~~Inventories~~

The Company values inventories at the lower of cost or market as determined primarily by the retail inventory method of accounting, using the last-in, first-out ("LIFO") method for the Walmart U.S. segment's inventories. The inventory for the Walmart International segment is generally valued in most markets by the retail inventory method of accounting, using the first-in, first-out ("FIFO") method. The retail inventory method of accounting results in inventory being valued at the lower of cost or market, since permanent markdowns are immediately recorded as a reduction of the carrying value of inventory. The inventory at the Sam's Club segment is valued using the weighted-average cost LIFO method. If necessary, the Company records a LIFO adjustment during interim periods for the projected annual effect of inflation or deflation which is adjusted to actual results based on rates and inventory levels at the end of the year.

Table of Contents

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 ~~and six~~ months ended ~~July 31, 2022~~April 30, 2023 and ~~2021.~~2022.

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 July 31,				Six Months Ended July 31,					Three Months Ended April 30,
(Amounts in millions, except per share data)	(Amounts in millions, except per share data)	2022		2021		2022		2021		(Amounts in millions, except per share data)	2023		2022
Numerator	Numerator									Numerator
Consolidated net income	Consolidated net income	$	5,147	$	4,364	$	7,250	$	7,175	Consolidated net income	$	1,896	$	2,103
Consolidated net loss (income) attributable to noncontrolling interest		2		(88)		(47)		(169)
Consolidated net income attributable to noncontrolling interest										Consolidated net income attributable to noncontrolling interest	(223)		(49)
Consolidated net income attributable to Walmart	Consolidated net income attributable to Walmart	$	5,149	$	4,276	$	7,203	$	7,006	Consolidated net income attributable to Walmart	$	1,673	$	2,054

Denominator	Denominator									Denominator
Weighted-average common shares outstanding, basic	Weighted-average common shares outstanding, basic	2,736		2,799		2,745		2,807		Weighted-average common shares outstanding, basic	2,694		2,754
Dilutive impact of share-based awards	Dilutive impact of share-based awards	9		13		10		13		Dilutive impact of share-based awards	10		11
Weighted-average common shares outstanding, diluted	Weighted-average common shares outstanding, diluted	2,745		2,812		2,755		2,820		Weighted-average common shares outstanding, diluted	2,704		2,765

Net income per common share attributable to Walmart	Net income per common share attributable to Walmart									Net income per common share attributable to Walmart
Basic	Basic	$	1.88	$	1.53	$	2.62	$	2.50	Basic	$	0.62	$	0.75
Diluted	Diluted	1.88		1.52		2.61		2.48		Diluted	0.62		0.74

Note 3. Accumulated Other Comprehensive Loss

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 Hedges		Cash Flow Hedges		Minimum Pension Liability		Total
Balances as of February 1, 2023	$	(10,816)	$	94	$	(951)	$	(7)	$	(11,680)
Other comprehensive income (loss) before reclassifications, net	600		—		(82)		2		520
Reclassifications to income, net	—		—		13		—		13
Balances as of April 30, 2023	$	(10,216)	$	94	$	(1,020)	$	(5)	$	(11,147)


(Amounts in millions and net of immaterial income taxes)	Currency Translation and Other		Net Investment Hedges		Cash Flow Hedges		Minimum Pension Liability		Total
Balances as of February 1, 2022	$	(8,100)	$	94	$	(748)	$	(12)	$	(8,766)
Other comprehensive income before reclassifications, net	225		—		26		—		251
Reclassifications to income, net	—		—		16		1		17
Balances as of April 30, 2022	$	(7,875)	$	94	$	(706)	$	(11)	$	(8,498)

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 Hedges Cash Flow Hedges Minimum
Pension
Liability Total
Balances as of February 1, 2022 $ (8,100) $ 94 $ (748) $ (12) $ (8,766)
Other comprehensive income before reclassifications, net 225 — 26 — 251
Reclassifications to income, net — — 16 1 17
Balances as of April 30, 2022 $ (7,875) $ 94 $ (706) $ (11) $ (8,498)
Other comprehensive income (loss) before reclassifications, net (796) — (622) 2 (1,416)
Reclassifications to income, net (309) — 329 — 20
Balances as of July 31, 2022 $ (8,980) $ 94 $ (999) $ (9) $ (9,894)

(Amounts in millions and net of immaterial income taxes) Currency
Translation and Other Net Investment Hedges Cash Flow Hedges Minimum
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)
Other comprehensive income (loss) before reclassifications, net 123 — (193) (3) (73)
Reclassifications to income, net — — 38 5 43
Balances as of July 31, 2021 $ (7,616) $ 94 $ (439) $ (15) $ (7,976)

~~(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.

Table of Contents

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,~~2023, 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 ~~July 31, 2022~~April 30, 2023 and January 31, ~~2022,~~2023, all undrawn.

The following table provides the changes in the Company's long-term debt for the ~~six~~three months ended ~~July 31, 2022:~~April 30, 2023:


(Amounts in millions)	(Amounts in millions)	Long-term debt due within one year		Long-term debt		Total		(Amounts in millions)	Long-term debt due within one year		Long-term debt		Total
Balances as of February 1, 2022		$	2,803	$	34,864	$	37,667

Balances as of February 1, 2023								Balances as of February 1, 2023	$	4,191	$	34,649	$	38,840
Proceeds from issuance of long-term debt(1)								Proceeds from issuance of long-term debt(1)	—		4,967		4,967
Repayments of long-term debt	Repayments of long-term debt	(1,439)		—		(1,439)		Repayments of long-term debt	(1,784)		—		(1,784)
Reclassifications of long-term debt	Reclassifications of long-term debt	4,030		(4,030)		—		Reclassifications of long-term debt	1,572		(1,572)		—
Other	Other	(78)		(1,033)		(1,111)		Other	(4)		76		72
Balances as of July 31, 2022		$	5,316	$	29,801	$	35,117
Balances as of April 30, 2023								Balances as of April 30, 2023	$	3,975	$	38,120	$	42,095

(1)Proceeds from issuance of long-term debt are net of deferred loan costs and any related discount or premium.

Debt Issuances

Information on significant long-term debt issued during the three months ended April 30, 2023, for general corporate purposes, is as follows:


(Amounts in millions)
Issue Date	Principal Amount		Maturity Date	Fixed Interest Rate	Net Proceeds
April 18, 2023	$	750	April 15, 2026	4.000%	$	748
April 18, 2023	$	750	April 15, 2028	3.900%	$	746
April 18, 2023	$	500	April 15, 2030	4.000%	$	497
April 18, 2023	$	1,500	April 15, 2033	4.100%	$	1,491
April 18, 2023	$	1,500	April 15, 2053	4.500%	$	1,485
Total					$	4,967

These issuances are senior, unsecured notes which rank equally with all other senior, unsecured debt obligations of the Company, and are not convertible or exchangeable. These issuances do not contain any financial covenants and do not restrict the Company's ability to pay dividends or repurchase company stock.

Debt Repayments

Information on significant long-term debt repayments during the three months ended April 30, 2023 is as follows:

(Amounts in millions)

Maturity Date

Principal Amount

Fixed vs. Floating

Interest Rate

Repayment

April 11, 2023

1,750

Fixed

2.55%

1,750

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.

Table of Contents

The Company measures the fair value of certain equity investments, including certain equity method investments, on a recurring basis within other long-term assets in the accompanying Condensed Consolidated Balance Sheets. The fair value of these investments is as follows:


(Amounts in millions)	(Amounts in millions)	Fair Value as of July 31, 2022		Fair Value as of January 31, 2022		(Amounts in millions)	Fair Value as of April 30, 2023		Fair Value as of January 31, 2023
Equity investments measured using Level 1 inputs	Equity investments measured using Level 1 inputs	$	4,773	$	6,069	Equity investments measured using Level 1 inputs	$	3,433	$	5,099
Equity investments measured using Level 2 inputs	Equity investments measured using Level 2 inputs	5,919		5,819		Equity investments measured using Level 2 inputs	4,082		5,570

Total	Total	$	10,692	$	11,888	Total	$	7,515	$	10,669

Changes in fair value of equity securities, as well as certain immaterial equity method investments where the Company has elected the fair value option measured on a recurring basis, are recognized within other gains and losses in the Condensed Consolidated Statements of Income. These fair value changes, along with certain other immaterial investment activity, resulted in net losses of $3.2 billion and $2.0 billion for three months ended April 30, 2023 and 2022, respectively, primarily due to net changes in the underlying stock prices of those investments. Equity investments without readily determinable fair values are carried at cost and adjusted for any observable price changes or impairments within other gains and losses in the Condensed Consolidated Statements of Income.

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 ~~July 31, 2022~~April 30, 2023 and January 31, ~~2022,~~2023, the notional amounts and fair values of these derivatives were as follows:


		July 31, 2022					January 31, 2022						April 30, 2023					January 31, 2023
(Amounts in millions)	(Amounts in millions)	Notional Amount		Fair Value			Notional Amount		Fair Value			(Amounts in millions)	Notional Amount		Fair Value			Notional Amount		Fair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges	Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges	$	8,021	$	(453)	(1)	$	8,021	$	(47)	(1)	Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges	$	6,271	$	(669)	(1)	$	8,021	$	(689)	(1)

Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges	Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges	5,682		(1,446)		(1)	7,855		(1,048)		(1)	Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges	5,920		(1,522)		(1)	5,900		(1,423)		(1)

Total	Total	$	13,703	$	(1,899)		$	15,876	$	(1,095)		Total	$	12,191	$	(2,191)		$	13,921	$	(2,112)

(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 ~~July 31, 2022.~~April 30, 2023 in the Company's Condensed Consolidated Balance Sheets.

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.

~~Table of~~ ~~Contents~~

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 ~~July 31, 2022~~April 30, 2023 and January 31, ~~2022,~~2023, are as follows:


		July 31, 2022				January 31, 2022					April 30, 2023				January 31, 2023
(Amounts in millions)	(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value		(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including amounts due within one year	Long-term debt, including amounts due within one year	$	35,117	$	36,367	$	37,667	$	42,381	Long-term debt, including amounts due within one year	$	42,095	$	41,296	$	38,840	$	38,169

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,~~records a liability for those legal proceedings and regulatory matters when it determines it is ~~not~~ probable orthat a loss has been incurred and the amount ~~cannot~~of the loss can be reasonably ~~estimated and therefore an accrual has not been recorded. However, where a liability~~estimated. The Company also discloses when it is reasonably possible ~~and~~that a material loss may be ~~material, such matters have been disclosed. The~~incurred. From time to time, 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~~

Table of Contents

Settlement Framework Regarding Multidistrict and State or Local Opioid Related Litigation

During fiscal 2023, the Company accrued a liability for approximately $3.3 billion for the Settlement Framework (described below) and other previously agreed upon state and tribal settlements. Because loss contingencies are inherently unpredictable and unfavorable developments or resolutions can occur, the assessment is highly subjective and requires judgments about future events. Moreover, the Settlement Framework will only take effect once a sufficient number of political subdivisions join, and there is no assurance regarding such participation. The amount of ultimate loss may thus differ materially from this accrual. The Settlement Framework includes no admission of wrongdoing or liability by the Company, and the Company continues to believe it has substantial factual and legal defenses to opioids-related 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 single, two-county 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 single, two-county trial to determine amounts owed by the defendants and any injunctive relief ended on May 17, 2022. On August 17, 2022, the court ordered all three defendants, including the Company, to pay approximately $651 million over fifteen years, on a joint and several liability basis. The court also ordered the defendants to pay approximately $87 million of the total abatement amount into an abatement fund on or before October 1, 2022, reflecting the first two years of abatement. However, the Company plans to appeal both the jury verdict from the liability phase and the court's abatement order.MDL.

Similar cases that name the Company also have ~~also~~ been filed in state courts by state, local, and tribal governments, healthcare providers, and other plaintiffs. Plaintiffs in these state court cases and in the MDL 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 November 15, 2022, the Company announced it had agreed to financial amounts and payment terms to resolve substantially all opioids-related lawsuits filed against the Company by states, political subdivisions, and Native American tribes whether as part of the MDL (excluding, however, a single, two-county trial described further below) or pending state court, as well as all potential claims that could be made against the Company by states, political subdivisions, and Native American tribes for up to approximately $3.1 billion (the "Settlement Amount"). The Settlement Amount includes amounts for remediation of alleged harms as well as attorneys' fees and costs and also includes some, but not all, amounts from previously agreed recent settlements by the Company. One settlement framework with corresponding conditions and participation thresholds applies for the states and political subdivisions, and another settlement framework with corresponding conditions and participation thresholds applies for the Native American tribes. Both settlement frameworks are referred to collectively as the "Settlement Framework."

The Settlement Framework, among other applicable conditions, provides that payments to states and political subdivisions are contingent upon the number of states and political subdivisions, including those states and political subdivisions who have not yet sued the Company, that agree to participate in the Settlement Framework or otherwise have their claims foreclosed within a prescribed deadline. On December 20, 2022, the Company announced that it had settlement agreements with all 50 states, including four states that previously settled with the Company, as well as the District of Columbia, Puerto Rico, and three other U.S. territories (the "Settling States"), thus satisfying the initial threshold of required participation by Settling States. The settlement with the Settling States is now contingent upon, among other applicable terms and conditions, a sufficient number of political subdivisions also agreeing to participate in the Settlement Framework, which condition the Company believes will be satisfied. The Settlement Framework will become effective 15 days following a settlement administrator's determination that this condition has been satisfied. If the Settlement Framework becomes effective, then the Company will be required to deposit into an account up to the full portion of the Settlement Amount attributable to the Settling States within 15 days following the effective date of the Settlement Framework.

If all conditions for the Settlement Framework, including, but not limited to, the minimum participation thresholds applicable for the political subdivisions have been satisfied within the prescribed deadlines, then the Company would expect to pay up to the full portion of the Settlement Amount attributable to the Settling States, beginning as early as the second quarter of fiscal 2024 and being completed during fiscal 2024. However, unless and until the settlement administrator has determined as such, the Company cannot predict if, when, or to what extent the Settlement Framework will be finalized with any of the Settling States.

Through May 2023, the Company has paid approximately $0.6 billion in the aggregate for separate settlements with Cherokee Nation, New Mexico, Florida, West Virginia, and Alabama, as well as various Native American tribes (excluding Cherokee Nation) that agreed to participate in the Settlement Framework or otherwise have their claims foreclosed within a prescribed deadline. Of the original approximately $3.3 billion accrued liability for the Settlement Framework and other settlements, approximately $2.8 billion remains and is recorded in accrued liabilities within the Company's Condensed Consolidated Balance Sheet as of April 30, 2023.

Table of Contents

Other Opioid Related Litigation

The Company will continue to vigorously defend against any opioid-related litigation not covered or otherwise resolved by the Settlement Framework, including, but not limited to, each of the matters described below; any other actions filed by healthcare providers, individuals, and third-party payers; as well as any action filed by a political subdivision or Native American tribe that is not resolved by the Settlement Framework. Accordingly, the Company has not accrued a liability for these opioid-related litigation matters nor can the Company reasonably estimate any loss or range of loss that may arise from these matters. The Company can provide no assurance as to the scope and outcome of any of these matters and no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.

Two-county Trial and MDL Bellwethers; and Canada. The liability phase of a single, two-county trial in one of the MDL cases resulted in a jury verdict on November 23, 2021, finding in favor of the plaintiffs as to the liability of all defendants, including the Company. The abatement phase of the single, two-county trial resulted in a judgment on August 17, 2022, that ordered all three defendants, including the Company, to pay an aggregate amount of approximately $0.7 billion over fifteen years, on a joint and several liability basis, and granted the plaintiffs injunctive relief. On September 7, 2022, the Company filed an appeal with the Sixth Circuit Court of Appeals. The monetary aspect of the judgment is stayed pending appeal, and the injunctive aspect of the judgment went into effect on February 20, 2023.

The MDL has designated five additional single-county cases as bellwethers to proceed through discovery; however, these five counties ultimately may elect to participate in the Settlement Framework and receive a portion of the Settlement Amount rather than go to trial.

Wal-Mart Canada Corp. and certain other subsidiaries of the Company have been named as defendants in two putative class action complaints filed in Canada related to dispensing and distribution practices involving opioids.

DOJ Opioid Civil Litigation. 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").~~Act. The DOJ is seeking civil penalties and injunctive relief. The Company initially moved to dismiss the DOJ complaint on February 22, 2021. After ~~the parties had~~that motion was fully briefed, the ~~Company's~~DOJ filed an amended complaint on October 7, 2022. On November 7, 2022, the Company filed a partial motion to dismiss the ~~District Court stayed proceedings in the case pending the decision of the United States Supreme Court in Ruan v. United States~~amended complaint. That motion remains pending.

Opioid Related Securities Class Actions and Kahn v. United States, 142 S. Ct. 2370 (Jun. 27, 2022) ("Ruan") regarding matters under the CSA. Following the decision in Ruan and pursuant to an agreement of the parties, the District Court set a deadline of October 7, 2022 for the DOJ to file an amended complaint or move for leave to amend its complaint.

Derivative Litigation. 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;~~action. After the ~~lead plaintiff responded to~~parties had fully briefed the motion to dismiss, on ~~January 10, 2022;~~September 9, 2022, the Court entered an order permitting the plaintiffs to file an amended complaint, which was filed on October 14, 2022, and which revised the applicable putative class of investors to those who acquired Walmart stock from March 31, 2017 through December 22, 2020. On November 16, 2022, the defendants filed ~~their reply brief on February 10, 2022. A hearing on~~a motion to dismiss the amended complaint. That motion ~~is currently scheduled for September 9, 2022.~~ remains pending.

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

~~Table of~~ ~~Contents~~

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~~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 adequately oversee the Company's prescription opioids business. The defendants ~~filed the opening brief on their motion~~moved to dismiss ~~that case~~and/or to stay proceedings on December 21, 2021, and the plaintiffs responded by filing an amended complaint on February 22, 2022. On April ~~27,~~20, 2022, the defendants ~~filed their opening brief in support~~moved to dismiss and/or to stay proceedings with respect to the amended complaint. In two orders issued on April 12 and 26, 2023, the Court of ~~their~~Chancery granted the defendants' motion to dismiss with respect to claims involving the ~~amended complaint. The plaintiffs filed an opposition to~~Company's distribution practices and denied the remainder of the motion, ~~on June 1, 2022;~~including the ~~defendants filed their reply brief on June 24, 2022;~~Company's request to stay the litigation. On May 5, 2023, the Company's Board of Directors appointed an independent Special Litigation Committee (the "SLC") to investigate the allegations regarding certain current and ~~the motion has been scheduled for a hearing on September 26, 2022.~~

~~While the Company believes that it is reasonably possible that it will incur a loss from certain of~~former officers and directors named in the various ~~Opioid litigation matters,~~derivative proceedings regarding oversight with respect to opioids. The Board has authorized the ~~Company cannot reasonably estimate any loss or range~~SLC to retain independent legal counsel and such other advisors as the SLC deems appropriate in carrying out its duties.

Table of loss that may arise from these matters 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.Contents

Other Legal Proceedings

Asda Equal Value ~~Claims~~

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, as well as additional claims in the High Court of the United Kingdom (the "Asda Equal Value Claims")~~, and further~~. Further claims may be asserted in the future. Subsequent to the divestiture of Asda in February 2021, the Company ~~will continue~~continues 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 certain of 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 outcome of these matters.

Money Transfer Agent Services ~~Matters~~

Matters. The Company has responded to grand jury subpoenas issued by the United States Attorney's Office for the Middle District of Pennsylvania on behalf of the ~~U.S. Department of Justice (the "DOJ")~~DOJ seeking documents regarding the Company's consumer fraud prevention 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 continues to cooperate with and provide information in response to requests from the DOJ. 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. On June 28, 2022, the FTC filed a complaint against the Company in the U.S. District Court for the Northern District of Illinois alleging that Walmart violated the Federal Trade Commission Act and the Telemarketing Sales Rule regarding its money transfer agent services and is requesting non-monetary relief and civil penalties. On August 29, 2022, the Company filed a motion to dismiss the complaint. On October 5, 2022, the FTC responded to the motion, and on October 28, 2022, the Company filed its reply. On March 27, 2023, the Court issued an opinion dismissing the FTC's claim under the Telemarketing Sales Rule and denying Walmart's motion to dismiss the claim under Section 5 of the FTC Act. On April 12, 2023, Walmart filed a motion to certify the Court's March 27, 2023, order for interlocutory appeal. The FTC's response to Walmart's motion to certify an interlocutory appeal was filed on May 8, 2023; Walmart's reply was filed on May 18, 2023. The FTC's amended complaint ~~and~~is due on June 30, 2023, subject to any further changes based upon the ~~court has entered an order staying discovery pending briefing and a decision~~Court's ruling on the ~~Company's motion to dismiss.~~interlocutory appeal. The Company intends to vigorously defend these matters. However, the Company can provide no assurance as to the scope and outcome of these matters and cannot reasonably estimate any loss or range of loss that may arise. Accordingly, the Company can provide no assurance ~~as to whether~~that 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, which includes omni-channel initiatives and certain other business offerings such as advertising services through Walmart Connect. 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.

~~Table of~~ ~~Contents~~

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.

Table of Contents

Net sales by segment are as follows:


		Three Months Ended July 31,				Six Months Ended July 31,					Three Months Ended April 30,
(Amounts in millions)	(Amounts in millions)	2022		2021		2022		2021		(Amounts in millions)	2023		2022
Net sales:	Net sales:									Net sales:
Walmart U.S.	Walmart U.S.	$	105,130	$	98,192	$	202,034	$	191,359	Walmart U.S.	$	103,901	$	96,904
Walmart International	Walmart International	24,350		23,035		48,113		50,335		Walmart International	26,604		23,763
Sam's Club	Sam's Club	21,901		18,644		41,522		35,336		Sam's Club	20,499		19,621
Net sales	Net sales	$	151,381	$	139,871	$	291,669	$	277,030	Net sales	$	151,004	$	140,288

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 July 31,				Six Months Ended July 31,				Three Months Ended April 30,
(Amounts in millions)	(Amounts in millions)	2022		2021		2022		2021			(Amounts in millions)	2023		2022
Operating income (loss):	Operating income (loss):										Operating income (loss):
Walmart U.S.	Walmart U.S.	$	5,683	$	6,089	$	10,145	$	11,544		Walmart U.S.	$	4,984	$	4,462
Walmart International	Walmart International	1,043		861		1,815		2,055			Walmart International	1,164		772
Sam's Club	Sam's Club	427		660		887		1,235			Sam's Club	458		460
Corporate and support	Corporate and support	(299)		(256)		(675)		(571)			Corporate and support	(366)		(376)
Operating income	Operating income	6,854		7,354		12,172		14,263			Operating income	6,240		5,318
Interest, net	Interest, net	448		478		867		1,014			Interest, net	557		419

Other (gains) and losses	Other (gains) and losses	(238)		953		1,760		3,482			Other (gains) and losses	2,995		1,998
Income before income taxes	Income before income taxes	$	6,644	$	5,923	$	9,545	$	9,767		Income before income taxes	$	2,688	$	2,901

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)	(Amounts in millions)	Three Months Ended July 31,				Six Months Ended July 31,				(Amounts in millions)	Three Months Ended April 30,
Walmart U.S. net sales by merchandise category	Walmart U.S. net sales by merchandise category	2022		2021		2022		2021		Walmart U.S. net sales by merchandise category	2023		2022
Grocery	Grocery	$	61,469	$	54,649	$	118,233	$	106,040	Grocery	$	63,407	$	56,764
General merchandise	General merchandise	30,073		31,707		57,452		62,314		General merchandise	25,765		27,379
Health and wellness	Health and wellness	11,331		10,480		22,225		20,450		Health and wellness	12,848		10,894
Other categories	Other categories	2,257		1,356		4,124		2,555		Other categories	1,881		1,867
Total	Total	$	105,130	$	98,192	$	202,034	$	191,359	Total	$	103,901	$	96,904

Of Walmart U.S.'s total net sales, approximately ~~$12.5~~$14.5 billion and ~~$11.2~~$11.4 billion related to eCommerce for the three months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021, respectively, and approximately $23.9 billion and $22.5 billion related to eCommerce for the six months ended July 31, 2022 and 2021,~~ respectively.


(Amounts in millions)	(Amounts in millions)	Three Months Ended July 31,				Six Months Ended July 31,				(Amounts in millions)	Three Months Ended April 30,
Walmart International net sales by market	Walmart International net sales by market	2022		2021		2022		2021		Walmart International net sales by market	2023		2022
Mexico and Central America	Mexico and Central America	$	9,690	$	8,658	$	18,778	$	16,988	Mexico and Central America	$	10,958	$	9,088
Canada	Canada	5,767		5,492		10,917		10,340		Canada	5,140		5,150
China	China	3,397		3,001		7,524		6,774		China	4,924		4,127
United Kingdom		—		—		—		3,811

Other	Other	5,496		5,884		10,894		12,422		Other	5,582		5,398
Total	Total	$	24,350	$	23,035	$	48,113	$	50,335	Total	$	26,604	$	23,763

Of Walmart International's total net sales, approximately ~~$4.6~~$5.4 billion and ~~$4.1~~$4.3 billion related to eCommerce for the three months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021, respectively, and approximately $8.9 billion and $8.4 billion related to eCommerce for the six months ended July 31, 2022 and 2021,~~ respectively.

1315

Table of Contents


(Amounts in millions)	(Amounts in millions)	Three Months Ended July 31,				Six Months Ended July 31,				(Amounts in millions)	Three Months Ended April 30,
Sam's Club net sales by merchandise category	Sam's Club net sales by merchandise category	2022		2021		2022		2021		Sam's Club net sales by merchandise category	2023		2022
Grocery and consumables	Grocery and consumables	$	13,392	$	12,014	$	25,693	$	22,683	Grocery and consumables	$	13,498	$	12,301
Fuel, tobacco and other categories	Fuel, tobacco and other categories	4,476		2,816		8,099		5,115		Fuel, tobacco and other categories	3,188		3,558
Home and apparel	Home and apparel	2,406		2,194		4,456		4,276		Home and apparel	2,079		2,115
Health and wellness	Health and wellness	1,006		956		2,016		1,897		Health and wellness	1,156		1,010
Technology, office and entertainment	Technology, office and entertainment	621		664		1,258		1,365		Technology, office and entertainment	578		637
Total	Total	$	21,901	$	18,644	$	41,522	$	35,336	Total	$	20,499	$	19,621

Of Sam's Club's total net sales, approximately ~~$2.1~~$2.2 billion and ~~$1.6~~$1.9 billion related to eCommerce for the three months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021, respectively, and approximately $3.9 billion and $3.2 billion related to eCommerce for the six months ended July 31, 2022 and 2021,~~ respectively.

1416

Table of Contents

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~~2024 ("fiscal ~~2023"~~2024") and the fiscal year ended January 31, ~~2022~~2023 ("fiscal ~~2022"~~2023"), should be read in conjunction with our Condensed Consolidated Financial Statements as of and for the three ~~and six~~ months ended ~~July 31, 2022,~~April 30, 2023, and the accompanying notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as our Condensed Consolidated Financial Statements as of and for the year ended January 31, ~~2022,~~2023, 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.~~2023.

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 as well as certain other business offerings that are part of our ~~flywheel~~ strategy, such as our Walmart Connect advertising business. 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 relatively 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, disruptions in supply chain ~~disruptions,~~and inventory management, 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.

1517

Table of Contents

We are committed to helping customers save money and live better through everyday low prices, supported by everyday low costs. However, like other retail companies, we have ~~seen~~experienced continued ~~supply chain disruptions contributing to higher than normal inventory levels. In addition,~~inflation that impacts our merchandise ~~costs for the six months ended July 31, 2022 have been impacted by high inflation, greater than what we have experienced in recent years which has increased costs and decreased profitability.~~costs. The impact to our net sales and gross profit margin is influenced in part by our pricing and merchandising strategies in response to cost increases. Those pricing strategies include, but are not limited to: absorbing cost increases instead of passing those cost increases on to our customers and members; reducing prices in certain merchandise categories; focusing on opening price points for certain food categories; and when necessary, passing cost increases on to our customers and members. Merchandising strategies include, but are not limited to: working with our suppliers to reduce product costs and share in absorbing cost increases; focusing on private label brands and smaller pack sizes; earlier-than-usual purchasing and in greater ~~volumes;~~volumes or moderating purchasing in certain categories; and securing ocean carrier and container capacity. These strategies have and may continue to impact gross profit as a percentage of net sales.

Further information on the factors that can affect our operating results and on certain risks to our Company and an investment in our securities can be found herein under "Item 5. Other Information."

We expect continued uncertainty in our business and the global economy due to pressure from inflation, a challenging macro environment, geopolitical conditions, supply chain disruptions, volatility in employment trends and consumer confidence, ongoing uncertainties related to the COVID-19 pandemic, including, among other matters, the effectiveness and extent of administration of vaccinations and medical treatment, any of which may impact our results.confidence. 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:~~priorities as follows:

•~~strong, efficient growth;~~Growth - serve customers through a seamless omni-channel experience;

•~~consistent~~Margin - improve our operating ~~discipline;~~income margin through productivity initiatives as well as category and business mix; and

•~~strategic~~Returns - improve our Return on Investment ("ROI") through margin improvement and disciplined capital ~~allocation.~~spend.

~~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,~~serving customers and members however they want to shop through our omni-channel business model. This includes increasing comparable store and club sales through increasing membership at Sam's Club and through Walmart+, accelerating eCommerce sales growth and expansion of omni-channel initiatives that complement our ~~flywheel strategy 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.~~strategy.

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. We focus on comparable sales in the U.S. as we believe it is a meaningful metric within the context of the U.S. retail market where there is a single currency, one inflationary market and generally consistent store and club formats from year to year.

Calendar comparable sales, as well as the impact of fuel, for the three ~~and six~~ months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021,~~ were as follows:


		Three Months Ended July 31,								Six Months Ended July 31,									Three Months Ended April 30,
		2022		2021		2022		2021		2022		2021		2022		2021			2023		2022		2023		2022
		With Fuel				Fuel Impact				With Fuel				Fuel Impact					With Fuel				Fuel Impact
Walmart U.S.	Walmart U.S.	7.0	%	5.4	%	0.6	%	0.4	%	5.5	%	5.4	%	0.5	%	0.4	%	Walmart U.S.	7.5	%	4.0	%	(0.2)	%	0.6	%
Sam's Club	Sam's Club	17.3	%	13.9	%	8.0	%	6.2	%	17.4	%	12.0	%	7.5	%	5.0	%	Sam's Club	4.6	%	17.4	%	(3.0)	%	6.9	%
Total U.S.	Total U.S.	8.7	%	6.7	%	1.9	%	1.3	%	7.4	%	6.4	%	1.7	%	1.1	%	Total U.S.	7.1	%	6.0	%	(0.6)	%	1.6	%

Comparable sales in the U.S., including fuel, increased ~~8.7% and 7.4%~~7.1% for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same period in the previous fiscal year. The Walmart U.S. segment had comparable sales growth of ~~7.0% and 5.5%~~7.5% for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, driven by growth in average ticket, including strong food sales and higher inflation impacts in certain merchandise categories, as well as ~~a slight increase~~growth in transactions. The Walmart U.S. segment's eCommerce sales positively contributed approximately ~~0.6%~~2.6% for the three months ended ~~July 31, 2022,~~April 30, 2023, which was primarily driven by store pickup and delivery. ~~For the six months ended July 31, 2022, eCommerce sales growth had a negligible impact on the Walmart U.S. segment total comparable sales growth.~~

~~Table of~~ ~~Contents~~

Comparable sales at the Sam's Club segment increased ~~17.3% and 17.4%~~4.6% for the three ~~and six~~ months ended ~~July 31, 2022, respectively.~~April 30, 2023. Growth in comparable sales benefited from growth in ~~transactions~~average ticket and ~~average ticket~~transactions and included higher inflation impacts in certain merchandise categories. The Sam's Club segment's eCommerce sales positively contributed approximately ~~0.8% and 0.7%~~1.5% to comparable sales for the three ~~and six~~ months ended ~~July 31, 2022, respectively.~~April 30, 2023, which was primarily driven by Curbside Pickup and Ship to Home.

~~Consistent Operating Discipline~~

Table of Contents

~~We operate~~Margin

Our objective of prioritizing margin focuses on growth with ~~discipline by managing expenses~~a focus on incremental margin accretion through a combination of productivity improvements as well as category and ~~optimizing the efficiency of how we work and creating an environment in which we have sustainable lowest cost to serve.~~business mix. We invest in technology and process improvements to increase productivity, manage inventory, and reduce ~~costs. We measure~~costs, and we operate with discipline by managing expenses and optimizing the efficiency of how we work. Additionally, we focus on our mix of businesses, including the expansion of connected value streams with higher margins, such as advertising. Our objective is to achieve operating ~~discipline through expense~~income leverage, which we define as ~~net sales~~ growing operating income at a faster rate than ~~operating, selling, general and administrative~~net sales.


	Three Months Ended April 30,
(Amounts in millions)	2023			2022
Net sales	$	151,004		$	140,288
Percentage change from comparable period	7.6		%	2.3		%
Gross profit as a percentage of net sales	23.7		%	23.8		%
Operating, selling, general and administrative expenses as a percentage of net sales	20.4		%	21.0		%
Operating income	$	6,240		$	5,318
Operating income as a percentage of net sales	4.1		%	3.8		%

Gross profit as a percentage of net sales ("~~operating"~~gross profit rate") ~~expenses.~~

Three Months Ended July 31, Six Months Ended July 31,
(Amounts in millions) 2022 2021 2022 2021
Net sales $ 151,381 $ 139,871 $ 291,669 $ 277,030
Percentage change from comparable period 8.2 % 2.2 % 5.3 % 2.4 %
Operating, selling, general and administrative expenses $ 30,167 $ 28,511 $ 59,571 $ 56,640
Percentage change from comparable period 5.8 % (1.7) % 5.2 % 0.5 %
Operating, selling, general and administrative expenses as a percentage of net sales 19.9 % 20.4 % 20.4 % 20.4 %
decreased 18 basis points for the three months ended April 30, 2023, when compared to the same period in the previous fiscal year. The decrease was primarily due to mix of sales globally, partially offset by the lapping of higher supply chain costs incurred in the previous year.

Operating expenses as a percentage of net sales decreased ~~45 and 3~~58 basis points for the three ~~and six~~ months ended ~~July 31, 2022, respectively.~~April 30, 2023. The decrease was driven by higher sales in each of our segments as well as operating discipline.

Operating income as a percentage of net sales increased 34 basis points for the three months ended ~~July 31, 2022 was primarily driven by growth in net sales, partially offset by increased wage costs in~~April 30, 2023, due to the Walmart U.S. segment. The slight decrease for the six months ended July 31, 2022 was primarily driven by growth in net sales and lower incremental COVID-19 costs, partially offset by increased wage costs in the Walmart U.S. segment.

~~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) Six Months Ended July 31,
Allocation of Capital Expenditures 2022 2021
Supply chain, customer-facing initiatives and technology $ 4,106 $ 2,454
Store and club remodels 2,377 1,446
New stores and clubs, including expansions and relocations 21 73
Total U.S. 6,504 3,973
Walmart International 988 1,046
Total Capital Expenditures $ 7,492 $ 5,019

factors described above.

Returns

As we execute our ~~financial framework,~~strategic priorities, focusing on high return investments that drive operating leverage, 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 ~~5.8%~~4.5% and ~~4.4%~~5.5% for the trailing twelve months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021,~~ respectively. The ~~increase~~decrease in ROA was primarily due to the ~~increase~~decrease in net ~~income.~~income, which was driven by lower operating income, partially offset by lapping debt extinguishment charges. ROI was ~~13.8%~~12.7% and ~~14.8%~~13.9% for the trailing twelve months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021,~~ respectively. The decrease in ROI was primarily due to athe decrease in operating income which included opioid legal charges and ~~increase in average total assets driven by higher inventories.~~reorganization and restructuring charges recorded during the second half of fiscal 2023.

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.

~~Table of~~ ~~Contents~~

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. 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.

Table of Contents

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 July 31,							For the Trailing Twelve Months Ending April 30,
(Amounts in millions)	(Amounts in millions)	2022			2021			(Amounts in millions)	2023			2022
CALCULATION OF RETURN ON ASSETS	CALCULATION OF RETURN ON ASSETS							CALCULATION OF RETURN ON ASSETS
Numerator	Numerator							Numerator
Consolidated net income	Consolidated net income	$	14,015		$	10,368		Consolidated net income	$	11,085		$	13,232
Denominator	Denominator							Denominator
Average total assets(1)	Average total assets(1)	$	242,876		$	237,967		Average total assets(1)	$	245,598		$	241,362
Return on assets (ROA)	Return on assets (ROA)	5.8		%	4.4		%	Return on assets (ROA)	4.5		%	5.5		%

CALCULATION OF RETURN ON INVESTMENT	CALCULATION OF RETURN ON INVESTMENT							CALCULATION OF RETURN ON INVESTMENT
Numerator	Numerator							Numerator
Operating income	Operating income	$	23,851		$	25,528		Operating income	$	21,350		$	24,351
+ Interest income	+ Interest income	155			122			+ Interest income	323			163
+ Depreciation and amortization	+ Depreciation and amortization	10,733			10,892			+ Depreciation and amortization	11,110			10,679
+ Rent	+ Rent	2,302			2,451			+ Rent	2,301			2,270
= ROI operating income	= ROI operating income	$	37,041		$	38,993		= ROI operating income	$	35,084		$	37,463

Denominator	Denominator							Denominator
Average total assets(1)	Average total assets(1)	$	242,876		$	237,967		Average total assets(1)	$	245,598		$	241,362
'+ Average accumulated depreciation and amortization(1)	'+ Average accumulated depreciation and amortization(1)	102,155			97,685			'+ Average accumulated depreciation and amortization(1)	108,730			100,315
'- Average accounts payable(1)	'- Average accounts payable(1)	51,896			47,964			'- Average accounts payable(1)	53,597			50,539
- Average accrued liabilities(1)	- Average accrued liabilities(1)	23,878			23,842			- Average accrued liabilities(1)	24,294			21,216
= Average invested capital	= Average invested capital	$	269,257		$	263,846		= Average invested capital	$	276,437		$	269,922
Return on investment (ROI)	Return on investment (ROI)	13.8		%	14.8		%	Return on investment (ROI)	12.7		%	13.9		%

(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 July 31,							As of April 30,
		2022		2021		2020			2023		2022		2021
Certain Balance Sheet Data	Certain Balance Sheet Data							Certain Balance Sheet Data
Total assets	Total assets	$	247,199	$	238,552	$	237,382	Total assets	$	245,053	$	246,142	$	236,581
Accumulated depreciation and amortization	Accumulated depreciation and amortization	105,963		98,346		97,023		Accumulated depreciation and amortization	113,164		104,295		96,334
Accounts payable	Accounts payable	54,191		49,601		46,326		Accounts payable	54,268		52,926		48,151
Accrued liabilities	Accrued liabilities	23,843		23,915		23,768		Accrued liabilities	27,527		21,061		21,371

Strategic Capital Allocation

Our strategy includes allocating the majority of our capital to higher-return areas focused on automation such as eCommerce, supply chain and store and club investments. The following table provides additional detail:


(Amounts in millions)	Three Months Ended April 30,
Allocation of Capital Expenditures		2023		2022
Supply chain, customer-facing initiatives and technology		$	2,715	$	2,063
Store and club remodels		1,236		981
New stores and clubs, including expansions and relocations		4		11
Total U.S.		3,955		3,055
Walmart International		474		484
Total Capital Expenditures		$	4,429	$	3,539

1820

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 provided by or used in operating activities in a period minus payments for property and equipment made in that period. Net cash provided by operating activities was ~~$9.2~~$4.6 billion for the ~~six~~three months ended ~~July 31, 2022,~~April 30, 2023, which represents ~~a decline~~an increase of ~~$3.2~~$8.4 billion when compared to the same period in the prior year. The ~~decline~~increase is primarily due to ~~a decrease in operating income, higher~~moderated levels of inventory ~~costs~~purchases and ~~purchases to support strong sales and the~~ timing of certain payments. Free cash flow for the ~~six~~three months ended ~~July 31, 2022~~April 30, 2023 was ~~$1.7~~$0.2 billion, which represents ~~a decline~~an increase of ~~$5.7~~$7.5 billion when compared to the same period in the prior year. The ~~decline~~increase in free cash flow is due to the ~~reduction~~increase in operating cash flows described above, ~~as well as~~partially offset by an increase of ~~$2.5~~$0.9 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.~~flow.


		Six Months Ended July 31,					Three Months Ended April 30,
(Amounts in millions)	(Amounts in millions)		2022		2021			(Amounts in millions)	2023		2022
Net cash provided by operating activities			$	9,240	$	12,423
Net cash provided by (used in) operating activities								Net cash provided by (used in) operating activities	$	4,633	$	(3,758)
Payments for property and equipment	Payments for property and equipment		(7,492)		(5,019)			Payments for property and equipment	(4,429)		(3,539)
Free cash flow	Free cash flow		$	1,748	$	7,404		Free cash flow	$	204	$	(7,297)

Net cash (used in) provided by investing activities(1)			$	(8,584)	$	2,402
Net cash used in financing activities			(1,400)		(11,559)

~~(1)~~ ~~"Net cash (used in) provided by investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.~~

1921

Table of Contents

Results of Operations

Consolidated Results of Operations


		Three Months Ended July 31,				Six Months Ended July 31,						Three Months Ended April 30,
(Amounts in millions, except unit counts)	(Amounts in millions, except unit counts)	2022		2021		2022			2021		(Amounts in millions, except unit counts)	2023			2022
Total revenues	Total revenues	$	152,859	$	141,048	$	294,428		$	279,358	Total revenues	$	152,301		$	141,569
Percentage change from comparable period	Percentage change from comparable period	8.4%		2.4%		5.4		%	2.6%		Percentage change from comparable period	7.6		%	2.4		%
Net sales	Net sales	$	151,381	$	139,871	$	291,669		$	277,030	Net sales	$	151,004		$	140,288
Percentage change from comparable period	Percentage change from comparable period	8.2%		2.2%		5.3		%	2.4%		Percentage change from comparable period	7.6		%	2.3		%
Total U.S. calendar comparable sales increase	Total U.S. calendar comparable sales increase	8.7%		6.7%		7.4		%	6.4%		Total U.S. calendar comparable sales increase	7.1		%	6.0		%
Gross profit margin as a percentage of net sales	Gross profit margin as a percentage of net sales	23.5%		24.8%		23.7		%	24.8%		Gross profit margin as a percentage of net sales	23.7		%	23.8		%
Operating income	Operating income	$	6,854	$	7,354	$	12,172		$	14,263	Operating income	$	6,240		$	5,318
Operating income as a percentage of net sales	Operating income as a percentage of net sales	4.5%		5.3%		4.2		%	5.1%		Operating income as a percentage of net sales	4.1		%	3.8		%

Other (gains) and losses	Other (gains) and losses	$	(238)	$	953	$	1,760		$	3,482	Other (gains) and losses	$	2,995		$	1,998
Consolidated net income	Consolidated net income	$	5,147	$	4,364	$	7,250		$	7,175	Consolidated net income	$	1,896		$	2,103
Unit counts at period end	Unit counts at period end	10,585		10,524		10,585			10,524		Unit counts at period end	10,545			10,585
Retail square feet at period end	Retail square feet at period end	1,057		1,063		1,057			1,063		Retail square feet at period end	1,051			1,059

Our total revenues, which are mostly comprised of net sales but also include membership and other income, increased ~~$11.8~~$10.7 billion or ~~8.4% and $15.1 billion or 5.4%~~7.6% for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. The increases in revenues were primarily due to strong positive comparable sales for the Walmart U.S. and Sam's Club segments which were ~~impacted~~driven by growth in average ticket, including strong food sales and higher inflation impacts in certain merchandise categories, as well as growth in transactions, along with positive comparable sales in most of our international markets. For the six months ended July 31, 2022, these increases were partially offset by a net sales decrease of $5.0 billion related to the divestiture of our operations in the U.K. and Japan, which closed in the first quarter of fiscal 2022. Net sales were negatively impacted by ~~$1.0 billion and $1.3~~$0.2 billion of fluctuations in currency exchange rates for the three ~~and six~~ months ended ~~July 31, 2022, respectively.~~April 30, 2023.

Gross profit ~~as a percentage of net sales ("gross profit rate")~~rate decreased ~~132 and 110~~18 basis points ~~respectively~~ for the three ~~and six~~ months ended ~~July 31, 2022,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. The decrease for the three months ended July 31, 2022 was primarily due to markdowns and mix of sales in the U.S., as well as an inflation related LIFO charge in the Sam's Club segment. The decrease for the six months ended July 31, 2022 was primarily due to mix of sales ~~and markdowns in~~globally, partially offset by the ~~U.S. and~~lapping of higher supply chain ~~costs.~~costs incurred in the previous year.

Operating expenses as a percentage of net sales decreased ~~45 and 3~~58 basis points for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. The decrease ~~for the three months ended July 31, 2022~~ was ~~primarily~~ driven by ~~growth~~higher sales in net sales, partially offset by increased wage costs in the Walmart U.S. segment. The slight decrease for the six months ended July 31, 2022 was primarily driven by growth in net sales and lower incremental COVID-19 costs, partially offset by increased wage costs in the Walmart U.S. segment.each of our segments as well as operating discipline.

Other gains and losses consist of certain non-operating items, such as the change in the fair value of our investments and gains or losses on business dispositions, which by their nature can fluctuate from period to period. The net increase of ~~$1.2~~$1.0 billion in other ~~gains~~losses for the three months ended ~~July 31, 2022,~~April 30, 2023, when compared to the same period in the previous fiscal year, was primarily due ~~to: a~~to an increase in net ~~gain of $0.6 billion~~losses from changes in the fair value of our equity and other ~~investments; a gain of $0.4 billion recognized on the sale of our remaining equity method investment~~investments driven by decreases in ~~Brazil; and a $0.2 billion dividend from one of our investments. The net decrease of $1.7 billion in other losses~~their underlying stock prices.

Our effective income tax rate was 29.5% for the ~~six~~three months ended ~~July 31, 2022, when~~April 30, 2023, compared to 27.5% for the same period in the previous fiscal ~~year, was~~year. The increase in effective tax rate is primarily due ~~to: a net gain of $0.6 billion from~~to the tax impact on changes in fair value of our equity and other investments; lapping $0.4 billion in incremental losses associated with the divestiture of our operations in the U.K. and Japan upon closing of the transactions during the first quarter of fiscal 2022; a gain of $0.4 billion recognized on the sale of our remaining equity method investment in Brazil during the second quarter of fiscal 2023; and a $0.2 billion dividend from one of our investments in the second quarter of fiscal 2023.

Our effective income tax rate was 22.5% and 24.0% for the three and six months ended July 31, 2022, respectively, compared to 26.3% and 26.5% for the same periods in the previous fiscal year. The decrease in effective tax rate includes the gain recognized on the sale of our remaining equity method investment in Brazil which provided minimal realizable tax expense and a discrete tax item recognized during the second quarter of fiscal 2023.investments. Our effective income tax rate may fluctuate from quarter to quarter as a result of factors including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items and the mix and size of earnings among our U.S. operations and international operations, which are subject to statutory rates that may be different than the U.S. statutory rate.

~~Table of~~ ~~Contents~~

As a result of the factors discussed above, ~~as well as a benefit in membership and other income related to an insurance settlement for Walmart Chile,~~ consolidated net income ~~increased $0.8 billion and $0.1~~decreased $0.2 billion for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. Additionally, net income attributable to noncontrolling interest increased $0.2 billion, which included stronger results from our Walmex operations. Accordingly, diluted net income per common share attributable to Walmart was ~~$1.88 and $2.61~~$0.62 for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, which represents ~~respective increases~~a decline of ~~$0.36 and $0.13~~$0.12 when compared to the same ~~periods~~period in the previous fiscal year.

Walmart U.S. Segment


		Three Months Ended July 31,						Six Months Ended July 31,							Three Months Ended April 30,
(Amounts in millions, except unit counts)	(Amounts in millions, except unit counts)	2022			2021			2022			2021			(Amounts in millions, except unit counts)	2023			2022
Net sales	Net sales	$	105,130		$	98,192		$	202,034		$	191,359		Net sales	$	103,901		$	96,904
Percentage change from comparable period	Percentage change from comparable period	7.1		%	5.3		%	5.6		%	5.1		%	Percentage change from comparable period	7.2		%	4.0		%
Calendar comparable sales increase	Calendar comparable sales increase	7.0		%	5.4		%	5.5		%	5.4		%	Calendar comparable sales increase	7.5		%	4.0		%
Operating income	Operating income	$	5,683		$	6,089		$	10,145		$	11,544		Operating income	$	4,984		$	4,462
Operating income as a percentage of net sales	Operating income as a percentage of net sales	5.4		%	6.2		%	5.0		%	6.0		%	Operating income as a percentage of net sales	4.8		%	4.6		%
Unit counts at period end	Unit counts at period end	4,735			4,740			4,735			4,740			Unit counts at period end	4,684			4,735
Retail square feet at period end	Retail square feet at period end	702			703			702			703			Retail square feet at period end	699			702

Table of Contents

Net sales for the Walmart U.S. segment increased ~~$6.9~~$7.0 billion or ~~7.1% and $10.7 billion or 5.6%~~7.2% for the three ~~and six~~ months ended ~~July 31, 2022,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. The ~~increases were~~increase was due to comparable sales of ~~7.0% and 5.5%~~7.5% for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, driven by growth in average ticket, including strong food sales and higher inflation impacts in certain merchandise categories, as well as ~~a slight increase~~growth in transactions. The Walmart U.S. segment's eCommerce sales positively contributed approximately ~~0.6% for the~~2.6% three months ended ~~July 31, 2022,~~April 30, 2023, which was primarily driven by store pickup and delivery. ~~For the six months ended July 31, 2022, eCommerce sales growth had a negligible impact on the Walmart U.S. segment total comparable sales growth.~~

Gross profit rate decreased ~~106~~41 basis points for the three months ended ~~July 31, 2022,~~April 30, 2023, when compared to the same period in the previous fiscal year, primarily driven by product mix shifts into lower margin categories, ~~and net markdowns,~~ partially offset by ~~price management impacts driven by~~the lapping of higher ~~inflation. For the six months ended July 31, 2022, gross profit rate decreased 74 basis points primarily due to product mix shifts into lower margin categories and increased~~ supply chain costs ~~partially offset by price management impacts driven by higher inflation.~~incurred in the previous year.

Operating expenses as a percentage of net sales decreased 2165 basis points for three months ended ~~July 31, 2022,~~April 30, 2023, when compared to the same period in the previous fiscal year, primarily driven by strong sales growth and ~~lower incremental~~the lapping of increased COVID-19 related wage costs in the previous year, partially offset by increased ~~wage costs. Operating expenses as a percentage of net sales increased 35 basis points for the six months ended July 31, 2022, when compared to the same period~~investments in ~~the previous fiscal year, primarily driven by increased wage costs, partially offset by strong sales growth and lower incremental COVID-19 costs.~~wages.

As a result of the factors discussed above, operating income ~~decreased $0.4 billion and $1.4~~increased $0.5 billion for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year.

Walmart International Segment


		Three Months Ended July 31,						Six Months Ended July 31,							Three Months Ended April 30,
(Amounts in millions, except unit counts)	(Amounts in millions, except unit counts)	2022			2021			2022			2021			(Amounts in millions, except unit counts)	2023			2022
Net sales	Net sales	$	24,350		$	23,035		$	48,113		$	50,335		Net sales	$	26,604		$	23,763
Percentage change from comparable period	Percentage change from comparable period	5.7		%	(15.2)		%	(4.4)		%	(11.6)		%	Percentage change from comparable period	12.0		%	(13.0)		%
Operating income	Operating income	$	1,043		$	861		$	1,815		$	2,055		Operating income	$	1,164		$	772
Operating income as a percentage of net sales	Operating income as a percentage of net sales	4.3		%	3.7		%	3.8		%	4.1		%	Operating income as a percentage of net sales	4.4		%	3.2		%
Unit counts at period end	Unit counts at period end	5,250			5,185			5,250			5,185			Unit counts at period end	5,262			5,250
Retail square feet at period end	Retail square feet at period end	274			280			274			280			Retail square feet at period end	272			277

Net sales for the Walmart International segment increased ~~$1.3~~$2.8 billion or ~~5.7% and decreased $2.2 billion or 4.4%~~12.0% for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. ~~For the three months ended July 31, 2022, the~~The increase was primarily due to positive comparable sales in most of our international ~~markets,~~markets. These increases were partially offset by negative fluctuations in currency exchange rates of ~~$1.0~~$0.2 billion. For the six months ended July 31, 2022, the reduction in net sales was due to a $5.0 billion decrease related to the divestiture of our operations in the U.K. and Japan during the first quarter of fiscal 2022, as well as negative fluctuations in currency exchange rates of $1.3 billion, partially offset by positive comparable sales in each of our remaining markets.

Gross profit rate ~~decreased 18 basis points and 63~~increased 12 basis points for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year, primarily ~~driven~~due to the lapping of higher markdowns from slower sales growth in the previous year, partially offset by ~~shifts into lower margin formats~~ongoing format and

~~Table of~~ ~~Contents~~

~~channels in China and category~~ channel mix ~~shifts into lower margin categories. Divested markets further impacted the gross profit rate for the six months ended July 31, 2022.~~shifts.

Operating expenses as a percentage of net sales decreased ~~7 basis points and increased 6~~111 basis points for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. For the three months ended July 31, 2022, the decrease was primarily driven by strong sales growth, partially offset by planned strategic investments. For the six months ended July 31, 2022, the increase wasyear, primarily due to ~~impacts from the divested markets, partially offset by~~ strong sales ~~growth.~~and operating efficiencies in most of our markets.

As a result of the factors discussed above, ~~as well as a benefit of $0.2 billion related to an insurance settlement for Walmart Chile recorded in membership and other income,~~ operating income increased ~~$0.2 billion and decreased $0.2~~$0.4 billion for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year.

Sam's Club Segment


		Three Months Ended July 31,						Six Months Ended July 31,							Three Months Ended April 30,
(Amounts in millions, except unit counts)	(Amounts in millions, except unit counts)	2022			2021			2022			2021			(Amounts in millions, except unit counts)	2023			2022
Including Fuel	Including Fuel													Including Fuel
Net sales	Net sales	$	21,901		$	18,644		$	41,522		$	35,336		Net sales	$	20,499		$	19,621
Percentage change from comparable period	Percentage change from comparable period	17.5		%	13.9		%	17.5		%	12.0		%	Percentage change from comparable period	4.5		%	17.5		%
Calendar comparable sales increase	Calendar comparable sales increase	17.3		%	13.9		%	17.4		%	12.0		%	Calendar comparable sales increase	4.6		%	17.4		%
Operating income	Operating income	$	427		$	660		$	887		$	1,235		Operating income	$	458		$	460
Operating income as a percentage of net sales	Operating income as a percentage of net sales	1.9		%	3.5		%	2.1		%	3.5		%	Operating income as a percentage of net sales	2.2		%	2.3		%
Unit counts at period end	Unit counts at period end	600			599			600			599			Unit counts at period end	599			600
Retail square feet at period end	Retail square feet at period end	80			80			80			80			Retail square feet at period end	80			80

Excluding Fuel (1)	Excluding Fuel (1)													Excluding Fuel (1)
Net sales	Net sales	$	17,999		$	16,437		$	34,531		$	31,374		Net sales	$	17,763		$	16,532
Percentage change from comparable period	Percentage change from comparable period	9.5		%	7.7		%	10.1		%	7.0		%	Percentage change from comparable period	7.4		%	10.7		%
Operating income	Operating income	$	222		$	575		$	557		$	1,105		Operating income	$	354		$	335
Operating income as a percentage of net sales	Operating income as a percentage of net sales	1.2		%	3.5		%	1.6		%	3.5		%	Operating income as a percentage of net sales	2.0		%	2.0		%

(1)We believe the "Excluding Fuel" information is useful to investors because it permits investors to understand the effect of the Sam's Club segment's fuel sales on its results of operations, which are impacted by the volatility of fuel prices. Volatility in fuel prices may continue to impact the operating results of the Sam's Club segment in the future.

Table of Contents

Net sales for the Sam's Club segment increased ~~$3.3~~$0.9 billion or ~~17.5% and $6.2 billion or 17.5%~~4.5% for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. The ~~increases were~~increase was primarily due to comparable sales, including fuel, of ~~17.3% and 17.4%~~4.6% for the three ~~and six~~ months ended ~~July 31, 2022, respectively.~~April 30, 2023. Growth in comparable sales benefited from growth in ~~transactions~~average ticket and ~~average ticket~~transactions and included higher inflation impacts in certain merchandise categories. Sam's Club eCommerce ~~net~~ sales positively contributed approximately ~~0.8% and 0.7%~~1.5% to comparable sales, ~~for~~which was primarily driven by Curbside Pickup and Ship to Home. Net sales were negatively impacted by lower fuel sales, which decreased $0.4 billion when compared to the ~~three and six months ended July 31, 2022, respectively.~~same period in the previous fiscal year.

Gross profit rate ~~decreased 272 and 245~~increased 36 basis points for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. The ~~decreases~~increase in gross profit rate ~~were~~was primarily due to ~~inventory write-downs, including an inflation related LIFO charge, and elevated~~the lapping of increased supply chain ~~and eCommerce fulfillment~~ costs.

Membership and other income increased ~~8.4% and 10.1%~~4.7% for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year. The increase was due to increases in new member sign-ups and Plus penetration.

Operating expenses as a percentage of segment net sales ~~decreased 131 and 124~~increased 47 basis points for the three ~~and six~~ months ended ~~July 31, 2022, respectively,~~April 30, 2023, when compared to the same ~~periods~~period in the previous fiscal year, primarily driven by ~~higher sales.~~lower fuel sales and elevated technology spend.

As a result of the factors discussed above, operating income decreased ~~$0.2 billion and $0.3 billion for the three and six months ended July 31, 2022, respectively,~~slightly when compared to the same ~~periods~~period in the previous fiscal year.

Liquidity and Capital Resources

Liquidity

The strength and stability of our operations have historically supplied us with a significant source of liquidity. Our cash flows provided by operating activities, supplemented with our long-term debt and short-term borrowings, have been sufficient to fund our operations while allowing us to invest in activities that support the long-term growth of our operations. Generally, some or all of the remaining available cash flow has been used to fund dividends on our common stock and share repurchases. We believe our sources of liquidity will continue to be sufficient to fund operations, finance our global investment activities, pay dividends and fund our share repurchases for at least the next 12 months and thereafter for the foreseeable future.

~~Table of~~ ~~Contents~~

Net Cash Provided by or Used in Operating Activities


		Six Months Ended July 31,					Three Months Ended April 30,
(Amounts in millions)	(Amounts in millions)		2022		2021			(Amounts in millions)	2023		2022
Net cash provided by operating activities			$	9,240	$	12,423
Net cash provided by (used in) operating activities								Net cash provided by (used in) operating activities	$	4,633	$	(3,758)

Net cash provided by operating activities was ~~$9.2~~$4.6 billion as compared to ~~$12.4~~net cash used in operating activities of $3.8 billion for the ~~six~~three months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021,~~ respectively. The ~~decline~~increase is primarily due to ~~a decrease in operating income, higher~~moderated levels of inventory ~~costs~~purchases and ~~purchases to support strong sales and the~~ timing of certain payments.

Cash Equivalents and Working Capital Deficit

Cash and cash equivalents were ~~$13.9~~$10.6 billion and ~~$22.8~~$11.8 billion at ~~July 31,~~April 30, 2023 and 2022, ~~and 2021,~~ respectively. Our working capital deficit was ~~$15.7~~$17.0 billion as of ~~July 31, 2022,~~April 30, 2023, which increased when compared to ~~$2.9~~the $13.3 billion working capital deficit as of ~~July 31, 2021,~~April 30, 2022, primarily driven by a decrease in short-term borrowings partially offset by an increase in ~~short-term borrowings and a decrease in cash and cash equivalents, partially offset by the increase in inventory described above.~~accrued liabilities. We generally operate with a working capital deficit due to our efficient use of cash in funding operations, consistent access to the capital markets and returns provided to our shareholders in the form of payments of cash dividends and share repurchases.

As of ~~July 31, 2022~~April 30, 2023 and January 31, ~~2022,~~2023, cash and cash equivalents of ~~$3.5~~$3.1 billion and ~~$4.3~~$2.9 billion, respectively, may not be freely transferable to the U.S. due to local laws or other ~~restrictions. Of the $3.5 billion at July 31, 2022, approximately $1.1 billion can only be accessed through dividends~~restrictions or ~~intercompany financing arrangements~~are subject to the approval of the ~~Flipkart minority shareholders; however, this cash is expected to be utilized by Flipkart.~~noncontrolling interest shareholders.

Net Cash Used in ~~or Provided by~~ Investing Activities


		Six Months Ended July 31,						Three Months Ended April 30,
(Amounts in millions)	(Amounts in millions)		2022		2021		(Amounts in millions)		2023		2022
Net cash (used in) provided by investing activities			$	(8,584)	$	2,402
Net cash used in investing activities							Net cash used in investing activities		$	(4,860)	$	(4,558)

Net cash used in investing activities was ~~$8.6~~$4.9 billion as compared to ~~net~~$4.6 billion for the three months ended April 30, 2023 and 2022, respectively. The increase of $0.3 billion for the three months ended April 30, 2023 is primarily the result of an increase in payments for property and equipment.

Table of Contents

Net Cash Provided by Financing Activities


	Three Months Ended April 30,
(Amounts in millions)		2023		2022
Net cash provided by financing activities		$	1,940	$	5,315

Net cash provided by investing activities of $2.4 billion for the six months ended July 31, 2022 and 2021, respectively. Net cash used in investing activities increased $11.0 billion for the six months ended July 31, 2022 primarily as a result of lapping the net proceeds received from the divestitures of our operations in the U.K. and Japan and an increase in capital expenditures to support our investment strategy.

~~Net Cash Used in Financing Activities~~

Six Months Ended July 31,
(Amounts in millions) 2022 2021
Net cash used in financing activities $ (1,400) $ (11,559)

~~Net cash from~~ financing activities generally consists of transactions related to our short-term and long-term debt, dividends paid and the repurchase of Company stock. Transactions with noncontrolling interest shareholders are also classified as cash flows ~~from~~provided by financing activities. Net cash ~~used in~~provided by financing activities was ~~$1.4~~$1.9 billion as compared to ~~$11.6~~$5.3 billion for the ~~six~~three months ended ~~July 31,~~April 30, 2023 and 2022, ~~and 2021,~~ respectively. The decrease in net cash ~~used in~~provided by financing activities is primarily due to ~~an increase~~decreases in short-term borrowings, ~~to fund working capital needs.~~partially offset by proceeds received from the issuance of long-term debt in fiscal 2024 and fewer repurchases of Company stock.

In April ~~2022,~~2023, 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, we had committed lines of credit in the U.S. of $15.0 billion at ~~July 31, 2022,~~April 30, 2023, all undrawn.

Long-term Debt

The following table provides the changes in our long-term debt for the ~~six~~three months ended ~~July 31, 2022:~~April 30, 2023:


(Amounts in millions)	(Amounts in millions)	Long-term debt due within one year		Long-term debt		Total		(Amounts in millions)	Long-term debt due within one year		Long-term debt		Total
Balances as of February 1, 2022		$	2,803	$	34,864	$	37,667

Balances as of February 1, 2023								Balances as of February 1, 2023	$	4,191	$	34,649	$	38,840
Proceeds from issuance of long-term debt								Proceeds from issuance of long-term debt	—		4,967		4,967
Repayments of long-term debt	Repayments of long-term debt	(1,439)		—		(1,439)		Repayments of long-term debt	(1,784)		—		(1,784)
Reclassifications of long-term debt	Reclassifications of long-term debt	4,030		(4,030)		—		Reclassifications of long-term debt	1,572		(1,572)		—
Other	Other	(78)		(1,033)		(1,111)		Other	(4)		76		72
Balances as of July 31, 2022		$	5,316	$	29,801	$	35,117
Balances as of April 30, 2023								Balances as of April 30, 2023	$	3,975	$	38,120	$	42,095

During the three months ended April 30, 2023, our total outstanding long-term debt increased $3.3 billion primarily due to the issuance of new long-term debt in April 2023, partially offset by the maturities of certain long-term debt. Refer to ~~Table~~Note 4 to our Condensed Consolidated Financial Statements for details on the issuances and repayments of ~~Contents~~long-term debt.

Dividends

Effective February ~~17, 2022,~~21, 2023, the Board of Directors approved the fiscal 2024 annual dividend of $2.28 per share, an increase over the fiscal 2023 annual dividend of $2.24 per ~~share, an increase over the fiscal 2022 annual dividend of $2.20 per~~ share. For fiscal ~~2023,~~2024, the annual dividend was or will be paid in four quarterly installments of ~~$0.56~~$0.57 per share, according to the following record and payable dates:


Record Date						Payable Date
March ~~18, 2022~~17, 2023						April ~~4, 2022~~3, 2023
May ~~6, 2022~~5, 2023						May ~~31, 2022~~30, 2023
August ~~12, 2022~~11, 2023						September ~~6, 2022~~5, 2023
December ~~9, 2022~~8, 2023						January ~~3, 2023~~2, 2024

The dividend installments payable on April ~~4, 2022~~3, 2023 and May ~~31, 2022~~30, 2023 were paid as scheduled.

Company Share Repurchase Program

From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. All repurchases made during the ~~six~~three months ended ~~July 31, 2022~~April 30, 2023 were made under the current $20 billion share repurchase program approved in ~~February 2021,~~November 2022, which has no expiration date or other restrictions limiting the period over which the Company can make repurchases. As of ~~July 31, 2022,~~April 30, 2023, authorization for ~~$4.9~~$18.6 billion of share repurchases remained under the share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status.

Table of Contents

We regularly review share repurchase activity and consider several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings, our results of operations and the market price of our common stock. We anticipate that a majority of the ongoing share repurchase program will be funded through the Company's free cash flow. The following table provides, on a settlement date basis, share repurchase information for the ~~six~~three months ended ~~July~~April 30, 2023 and 2022:


	Three Months Ended April 30,
(Amounts in millions, except per share data)		2023		2022
Total number of shares repurchased		4.8		16.9
Average price paid per share		$	143.46	$	142.17
Total amount paid for share repurchases		$	686	$	2,408

Sale of Subsidiary Stock

During the three months ended April 30, 2023, the Company received $0.5 billion related to new rounds of equity funding for the Company's majority-owned PhonePe subsidiary, which reduced the Company's ownership from approximately 89% as of January 31, ~~2022 and 2021:~~

Six Months Ended July 31,
(Amounts in millions, except per share data) 2022 2021
Total number of shares repurchased 43.3 37.7
Average price paid per share $ 132.74 $ 137.94
Total amount paid for share repurchases $ 5,747 $ 5,200
2023 to approximately 85%.

Material Cash Requirements

Material cash requirements from operating activities primarily consist of inventory purchases, employee related costs, taxes, interest and other general operating expenses, which we expect to be primarily satisfied by our cash from operations. Other material cash requirements from known contractual and other obligations include opioid and other legal settlements, short-term borrowings, long-term debt and related interest payments, leases, purchases of subsidiary stock and purchase obligations.

Capital Resources

We believe our cash flows from operations, current cash position, short-term borrowings and access to capital markets will continue to be sufficient to meet our anticipated cash requirements and contractual obligations, which includes funding seasonal buildups in merchandise inventories and funding our capital expenditures, acquisitions, dividend payments and share repurchases.

We have strong commercial paper and long-term debt ratings that have enabled and should continue to enable us to refinance our debt as it becomes due at favorable rates in capital markets. As of ~~July 31, 2022,~~April 30, 2023, the ratings assigned to our commercial paper and rated series of our outstanding long-term debt were as follows:

Rating agency

Commercial paper

Long-term debt

Standard & Poor's

A-1+

Moody's Investors Service

P-1

Aa2

Fitch Ratings

F1+

Credit rating agencies review their ratings periodically and, therefore, the credit ratings assigned to us by each agency may be subject to revision at any time. Accordingly, we are not able to predict whether our current credit ratings will remain consistent over time. Factors that could affect our credit ratings include changes in our operating performance, the general economic environment, conditions in the retail industry, our financial position, including our total debt and capitalization, and changes in our business strategy. Any downgrade of our credit ratings by a credit rating agency could increase our future borrowing costs or impair our ability to access capital and credit markets on terms commercially acceptable to us. In addition, any downgrade of our current short-term credit ratings could impair our ability to access the commercial paper markets with the same flexibility that we have experienced historically, potentially requiring us to rely more heavily on more expensive types of debt financing.

~~Table of~~ ~~Contents~~

The credit rating agency ratings are not recommendations to buy, sell or hold our commercial paper or debt securities. Each rating may be subject to revision or withdrawal at any time by the assigning rating organization and should be evaluated independently of any other rating. Moreover, each credit rating is specific to the security to which it applies.

Table of Contents

Other Matters

In Note 6 to our Condensed Consolidated Financial Statements, which is captioned "Contingencies" and appears in Part I of this Quarterly Report on Form 10-Q under the caption "Item 1. Financial Statements," we discuss, under the ~~sub-caption~~sub-captions "~~Opioids~~Settlement Framework Regarding Multidistrict and State or Local Opioid Related Litigation,," and "Other Opioid Related Litigation," the Prescription Opiate Litigation, the Settlement Framework, and other matters, including certain risks arising therefrom. In ~~that~~ Note 6, we also discuss, under the sub-caption "Asda Equal Value Claims" the Company's indemnification obligation for the Asda Equal Value Claims matter as well as under the sub-caption "Money Transfer Agent Services Matters" a United States Federal Trade Commission complaint related to money transfers and the Company's anti-fraud program and a government investigation by the U.S. Attorney's Office for the Middle District of Pennsylvania into the Company's consumer fraud prevention ~~program~~ and anti-money laundering compliance related to the Company's money transfer agent services. We ~~also~~ discuss various legal proceedings related to the ~~Federal and State~~ Prescription Opiate Litigation, the Settlement Framework, DOJ Opioid Civil Litigation and Opioids Related Securities Class Actions and Derivative ~~Litigation,~~Litigation; Asda Equal Value ~~Claims,~~Claims; and Money Transfer Agent Services ~~litigation~~Litigation in Part II of this Quarterly Report on Form 10-Q under the caption "Item 1. Legal Proceedings," under the sub-caption "I. Supplemental Information." We also discuss items related to the Foreign Direct Investment matter in India in Part II of this Quarterly Report on Form 10-Q under the caption "Item 1. Legal Proceedings," under the sub-caption "II. Certain Other Matters." We also discuss an environmental matter with the State of California in Part II of this Quarterly Report on Form 10-Q under the caption "Item 1. Legal Proceedings," under the sub-caption "III. Environmental Matters." The foregoing matters and other matters described elsewhere in this Quarterly Report on Form 10-Q represent contingent liabilities of the Company that may or may not result in the incurrence of a material liability by the Company upon their final resolution.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risks relating to our operations result primarily from changes in interest rates, currency exchange rates and the fair value of certain equity investments. As of ~~July 31, 2022,~~April 30, 2023, there were no material changes to our market risks disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, ~~2022.~~2023. The information concerning market risk set forth in Part II, Item 7A. of our Annual Report on Form 10-K for the fiscal year ended January 31, ~~2022,~~2023, as filed with the SEC on March ~~18, 2022,~~17, 2023, under the caption "~~Quantitative~~"Quantitative and Qualitative Disclosures About Market Risk,," is hereby incorporated by reference into this Quarterly Report on Form 10-Q.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information, which is required to be timely disclosed, is accumulated and communicated to management in a timely fashion. In designing and evaluating such controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management is necessarily required to use judgment in evaluating controls and procedures. Also, we have investments in unconsolidated entities. Since we do not control or manage those entities, our controls and procedures with respect to those entities are substantially more limited than those we maintain with respect to our consolidated subsidiaries.

In the ordinary course of business, we review our internal control over financial reporting and make changes to our systems and processes to improve such controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems, updating existing systems, automating manual processes, standardizing controls globally, migrating certain processes to our shared services organizations and increasing monitoring controls. ~~These changes have not materially affected,~~In the first quarter of fiscal 2024, we began implementing a new financial system, including our general ledger, in stages beginning in our U.S. and ~~are not reasonably likely to materially affect, the Company's~~Canadian markets. This financial system is a significant component of our internal control over financial ~~reporting and they allow us to~~reporting. We will continue to ~~enhance~~implement other components of our new financial system in stages, and each implementation will impact our internal ~~controls~~control over financial ~~reporting and ensure that they remain effective.~~reporting.

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report was performed under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms.

~~There~~ Except for the new financial system implementation noted above, there has been no significant change in the Company's internal control over financial reporting that occurred during the ~~most recently completed~~ fiscal quarter ended April 30, 2023, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

2527

Table of Contents

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

I. SUPPLEMENTAL INFORMATION: We discuss certain legal proceedings in Part I of this Quarterly Report on Form 10-Q under the caption "Item 1. Financial Statements," in Note 6 to our Condensed Consolidated Financial Statements, which is captioned "Contingencies," under the sub-caption "Legal Proceedings." We refer you to that discussion for important information concerning those legal proceedings, including the basis for such actions and, where known, the relief sought. We provide the following additional information concerning those legal proceedings, including the name of the lawsuit, the court in which the lawsuit is pending, and the date on which the petition commencing the lawsuit was filed.

Prescription Opiate Litigation: In re National Prescription Opiate Litigation (MDL No. 2804) (the "MDL"). The MDL is pending in the U.S. District Court for the Northern District of Ohio and includes over ~~2,150~~2,000 cases as of ~~August 17, 2022.~~May 18, 2023. The liability phase of a single, two-county 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~~claims resulted in a jury verdict on November 23, 2021, ~~the jury found~~finding in favor of the plaintiffs as to the liability of all defendants, including the Company. The abatement phase of the single, two-county trial ~~to determine amounts owed by the defendants and injunctive relief ended~~resulted in a judgment on ~~May 17, 2022. On~~ August 17, 2022, ~~the court~~that ordered all three defendants, including the Company, to pay an aggregate amount of approximately ~~$651 million~~$0.7 billion over fifteen years, on a joint and several liability ~~basis.~~basis, and granted the plaintiffs injunctive relief. The ~~court also ordered~~Company has filed an appeal with the ~~defendants to pay approximately $87 million~~Sixth Circuit Court of Appeals. The monetary aspect of the ~~total abatement amount into an abatement fund on or before October 1, 2022, reflecting the first two years of abatement. However, the Company plans to~~judgment is stayed pending appeal, ~~the jury verdict from the liability phase~~ and the ~~court's abatement order.~~injunctive portion of the judgment went into effect on February 20, 2023. The MDL has designated five additional single-county cases as bellwethers to proceed through discovery. In addition, there are ~~over 250 state court~~approximately 300 other cases pending in state and federal courts throughout the country as of ~~August 17, 2022. This includes~~May 18, 2023, as well as other cases in Canada against Wal-Mart Canada Corp. and certain ~~cases that were remanded by~~other subsidiaries of the ~~MDL court and a case brought by the Cherokee Nation that was remanded by the U.S. District Court for the Eastern District of Oklahoma to the District Court of Sequoya County, Oklahoma.~~Company. The case citations and currently scheduled trial dates, where applicable, ~~for the state court cases~~ are listed on Exhibit 99.1 to this Quarterly Report on Form ~~10-Q,~~10-Q.

Opioid Settlement Framework:On November 15, 2022, the Company announced that it had agreed to a Settlement Framework to resolve substantially all opioids-related lawsuits filed against the Company by states, political subdivisions, and Native American tribes (other than the single, two-county trial on appeal to the Sixth Circuit Court of Appeals as described above), as described in more detail in Note 6 to the Condensed Consolidated Financial Statements. The Company now has settlement agreements with all 50 states, including ~~among others, State~~four states that previously settled with the Company, as well as the District of ~~New Mexico ex rel. Balderas v. Purdue Pharma L.P., et al.~~Columbia, Puerto Rico, and ~~State~~three other U.S. territories, that are intended to resolve substantially all opioids-related lawsuits brought by state and local governments against the Company. The settlement will take effect if a sufficient number of ~~West Virginia ex rel. Morrisey v. Walmart Inc., et al., which currently~~political subdivisions also join. As described in more detail in Note 6 to the Condensed Consolidated Financial Statements, the Settlement Framework will not become effective unless and until a settlement administrator determines whether a sufficient number of political subdivisions have ~~trial dates scheduled~~agreed to ~~occur on September 6, 2022 and September 26, 2022, respectively.~~participate in the Settlement Framework.

DOJ Opioid Civil Litigation: A civil complaint pending in the U.S. District Court for the District of Delaware has been filed by the U.S. Department of Justice (the "DOJ") against the Company, in which the DOJ alleges violations of the Controlled Substances Act ~~(the "CSA")~~ related to nationwide distribution and dispensing of opioids. U.S. v. Walmart Inc., et al., USDC, Dist. of DE, 12/22/20. The Company filed a motion to dismiss the DOJ complaint on February 22, 2021. After the parties had fully briefed the Company's motion to dismiss, the ~~District court stayed proceedings in the case pending the decision of the United States Supreme Court in~~ ~~Ruan v. United States~~ ~~and~~ ~~Kahn v. United States, 142 S. Ct. 2370 (Jun. 27, 2022) ("Ruan") regarding matters under the CSA. Following the decision in~~ ~~Ruan~~ ~~and pursuant to an agreement of the parties, the District Court set a deadline of October 7, 2022 for the~~ DOJ ~~to file~~filed an amended complaint ~~or move for leave~~on October 7, 2022. On November 7, 2022, the Company filed a partial motion to ~~amend its~~dismiss the amended complaint. The motion remains pending.

Opioids Related Securities Class Actions and Derivative Litigation: Three derivative complaints and two securities class actions drawing heavily on the allegations of the DOJ complaint have been filed in Delaware naming the Company and various current and former directors and certain current and former officers as defendants. The plaintiffs in the derivative suits (in which the Company is a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties in connection with oversight of opioids dispensing and distribution and that the defendants violated Section 14(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are liable for contribution under Section 10(b) of the Exchange Act in connection with the Company's disclosures about opioids. Two of the derivative suits have been filed in the U.S. District Court in Delaware and those suits have been stayed pending further developments in other ~~Opioids Litigation~~opioids litigation matters. The other derivative suit has been filed in the Delaware Court of Chancery. The defendants in the derivative suit pending in the Delaware Court of Chancery moved to dismiss and/or to stay that case on December 21, 2021; the plaintiffs responded by filing an amended complaint on February 22, 2022. On April 20, 2022, the defendants moved to dismiss and/or stay proceedings on the amended complaint. In two orders issued on April 12 and 26, 2023, the Court of Chancery granted the defendants' motion to dismiss with respect to claims involving the Company' s distribution practices and denied the remainder of the motion, including the Company's request to stay the litigation. On May 5, 2023, the Company's Board of Directors appointed an independent Special Litigation Committee (the "SLC") to investigate the allegations regarding certain current and former officers and directors named in ~~Delaware.~~ the various proceedings regarding oversight with respect to opioids. The Board has authorized the SLC to retain independent legal counsel and such other advisors as the SLC deems appropriate in carrying out its duties.

Table of Contents

The securities class actions, alleging violations of Sections 10(b) and 20(a) of the Exchange Act regarding the Company's disclosures with respect to opioids, ~~were purportedly~~purport to be filed on behalf of a class of investors who acquired Walmart stock from March 30, 2016 through December 22, 2020. On May 11, 2021, the U.S. District Court in Delaware consolidated the class actions and appointed a lead plaintiff and lead counsel. The defendants ~~filed a motion~~moved to dismiss the consolidated securities class action on October 8, ~~2021; the lead plaintiff responded to the motion on January 10, 2022; and the defendants~~2021. On October 14, 2022, plaintiffs filed their reply brief on February 10, 2022. A hearing on the motion is currently scheduled for September 9, 2022. The defendants in the derivative suit pending in Delaware Chancery Court 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~~which revised the applicable putative class of investors to those who acquired Walmart stock from March 31, 2017 through December 22, ~~2022.~~2020. On ~~April 27,~~November 16, 2022, the ~~defendants filed their opening brief in support of their motion~~Company moved to dismiss the amended complaint. ~~The plaintiffs filed an opposition to the~~That motion ~~on June 1, 2022; the defendants filed their reply brief on June 24, 2022; and the motion has been scheduled for a hearing on September 26, 2022.~~remains pending.

Derivative Lawsuits: Abt v. Alvarez et al., USDC, Dist. of DE, 2/9/21; Nguyen v. McMillon et al., USDC, Dist. of DE, 4/16/21: Ontario Provincial Council of Carpenters' Pension Trust Fund et al. v. Walton et al., DE Court of Chancery, 9/27/21.

Securities Class Actions: Stanton v. Walmart Inc. et al., USDC, Dist. of DE, 1/20/21 and Martin v. Walmart Inc. et al., USDC, Dist. of DE, 3/5/21, consolidated into In re Walmart Inc. Securities Litigation, USDC, Dist. of DE, 5/11/21.

~~Table of~~ ~~Contents~~

ASDA Equal Value ~~Claims~~Claims:: Ms S Brierley & Others v. ASDA Stores Ltd ~~(2406372/~~(2406372/2008 & Others – Manchester Employment Tribunal); ~~ASDA Stores Ltd v Brierley & Ors (A2/2016/0973 – United Kingdom Court of Appeal); ASDA Stores Ltd v Ms S Brierley~~Abbas & Others ~~(UKEAT/0059/16/DM – United Kingdom Employment Appeal Tribunal)~~v Asda Stores limited (KB-2022-003243); ~~ASDA Stores Ltd v Ms S Brierley~~and Abusubih & Others ~~(UKEAT/0009/16/JOJ – United Kingdom Employment Appeal Tribunal)~~v Asda Stores limited (KB-2022-003240).

Money Transfer Agent Services Litigation: Federal Trade Commission v. Walmart Inc. (CV-3372), USDC, N. Dist. Of Ill, 6/28/22.

2729

Table of Contents

II. CERTAIN OTHER MATTERS

Foreign Direct Investment Matters: In July 2021, the Directorate of Enforcement in India issued a show cause notice to Flipkart Private Limited and one of its subsidiaries ("Flipkart"), and to unrelated companies and individuals, including certain current and former shareholders and directors of Flipkart. The notice requests the recipients to show cause as to why further proceedings under India's Foreign Direct Investment rules and regulations (the "Rules") should not be initiated against them based on alleged violations during the period from 2009 to 2015, prior to the Company's acquisition of a majority stake in Flipkart in 2018. The notice is an initial stage of proceedings under the Rules which could, depending upon the conclusions at the end of the initial stage, lead to a hearing to consider the merits of the allegations described in the notice. If a hearing is initiated and if it is determined that violations of the Rules occurred, the regulatory authority has the authority to impose monetary and/or non-monetary relief. Flipkart has begun the process of responding to the notice and, if the matter progresses to a consideration of the merits of the allegations described in the notice is initiated, Flipkart intends to defend against the allegations vigorously. Due to the fact that this process is in an early stage, the Company is unable to predict whether the notice will lead to a hearing on the merits or, if it does, the final outcome of the resulting proceedings. While the Company does not currently believe that this matter will have a material adverse effect on its business, financial condition, results of operations or cash flows, the Company can provide no assurance as to the scope or outcome of any proceeding that might result from the notice, the amount of the proceeds the Company may receive in indemnification from individuals and entities that sold shares to the Company under the 2018 agreement pursuant to which the Company acquired its majority stake in Flipkart, and can provide no assurance as to whether there will be a material adverse effect to its business or ~~whether the Company's business, financial position, results of operations or cash flows will not be materially adversely affected.~~its Condensed Consolidated Financial Statements.

III. ENVIRONMENTAL MATTERS: Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Company reasonably believes will exceed an applied threshold not to exceed $1 million.

In December 2021, the Office of the Attorney General of the State of California filed suit against the Company, bringing enforcement claims regarding Walmart's management of waste consumer products at its California facilities that are alleged to be hazardous. The suit was filed in Superior Court of Alameda County, California, Case No. 21CV004367, People v. Walmart ~~Inc~~.Inc., and a trial date has been scheduled for April 22, 2024. The Company believes the suit is without merit and is vigorously defending this litigation matter. While the Company cannot predict the ultimate outcome of this matter, the potential for penalties or settlement costs could exceed $1 million. Although the Company does not believe that this matter 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~~this matter and no assurance as to whether there will be a material adverse effect to its business ~~financial position, results of operations~~ or ~~cash flows will not be materially adversely affected.~~its Condensed Consolidated Financial Statements.

2830

Table of Contents

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in Part I, Item 1A, under the caption "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended January 31, ~~2022~~2023, which risks could materially and adversely affect our business, results of operations, financial condition, and liquidity. No material change in the risk factors discussed in such Form 10-K has occurred. Such risk factors do not identify all risks that we face because our business operations could also be affected by additional factors that are not presently known to us or that we currently consider to be immaterial to our operations. Our business operations could also be affected by additional factors that apply to all companies operating in the U.S. and globally.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

From time to time, the Company repurchases shares of ~~its~~our common stock under share repurchase programs authorized by the Company's Board of Directors. All repurchases made during the three months ended ~~July 31, 2022~~April 30, 2023 were made under the current $20 billion share repurchase program approved in ~~February 2021,~~November 2022, which has no expiration date or other restrictions limiting the period over which the Company can make repurchases. As of ~~July 31, 2022,~~April 30, 2023, authorization for ~~$4.9~~$18.6 billion of share repurchases remained under the share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status.

The Company regularly reviews its share repurchase activity and considers several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings and the market price of its common stock. Share repurchase activity under our share repurchase program, on a trade date basis, for the three months ended ~~July 31, 2022,~~April 30, 2023, was as follows:

Fiscal Period Total
Number of
Shares
Purchased Average
Price Paid
per Share Total Number of
Shares Purchased
as Part of Publicly
Announced Plans or
Programs
Approximate Dollar
Value of Shares that
May Yet Be
Purchased Under the
Plans or Programs(1)
(billions)
May 1 - 31, 2022 7,062,901 $ 132.30 7,062,901 $ 7.3
June 1 - 30, 2022 10,979,635 122.28 10,979,635 6.0
July 1 - 31, 2022 8,742,142 126.87 8,742,142 4.9
Total 26,784,678 26,784,678


Fiscal Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1) (billions)
February 1 - 28, 2023	1,924,772	$	143.12	1,924,772	$	19.0
March 1 - 31, 2023	1,704,147	140.37		1,704,147	18.8
April 1 - 30, 2023	1,039,542	150.21		1,039,542	18.6
Total	4,668,461			4,668,461

(1) Represents approximate dollar value of shares that could have been purchased under the plan in effect at the end of the month.

Item 5. Other Information

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains statements that Walmart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act as well as protections afforded by other federal securities laws.

Forward-looking Statements

The forward-looking statements in this report include, among other things:

•statements in Note 6 to those Condensed Consolidated Financial Statements regarding the possible outcome of, and future effect on Walmart's financial condition and results of operations of, certain litigation and other proceedings to which Walmart is a party, the possible outcome of, and future effect on Walmart's business of, certain other matters to which Walmart is subject, including the Company's Opioids Litigation, the Settlement Framework, Walmart's ongoing indemnification obligation for the Asda Equal Value Claims, as well as the Company's Money Transfer Agent Services Matters and the liabilities, losses, expenses and costs that Walmart may incur in connection with such matters;

Table of Contents

•in Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations": statements under the caption "Overview" regarding future changes to our business and our expectations about the potential impacts on our business, financial position, results of operations or cash flows as a result of ~~the COVID-19 pandemic;~~macroeconomic factors such as geopolitical conditions, supply chain disruptions, volatility in employment trends, and consumer confidence; statements under the caption "Overview" relating to the possible impact of inflationary pressures and volatility in currency exchange rates on the results, including net sales and operating income, of Walmart and the Walmart International segment; statements under the caption "Company Performance Metrics - ~~Strong, Efficient~~ Growth" regarding ~~the focus of~~ our ~~investments and the impact of such investments;~~strategy to serve customers through a seamless omni-channel experience; statements under the caption "Company Performance Metrics ~~– Strategic Capital Allocation~~- Mar gin" regarding our strategy to improve operating income margin through productivity initiatives as well as category and ~~discipline for capital allocation;~~business mix; statements under the caption "Company Performance Metrics - ~~Return~~sReturns" regarding our belief that returns on capital will improve as we execute on our ~~financial framework;~~strategic priorities; statements under the caption "Results of Operations - Consolidated Results of Operations"

~~Table of~~ ~~Contents~~

regarding the possibility of fluctuations in Walmart's effective income tax rate from quarter to quarter and the factors that may cause those fluctuations; a statement under the caption "Results of Operations - Sam's Club Segment" relating to the possible continuing impact of volatility in fuel prices on the future operating results of the Sam's Club segment; a statement under the caption "Liquidity and Capital Resources - Liquidity" that Walmart's sources of liquidity will be adequate to fund its operations, finance its global investment ~~and expansion~~ activities, pay dividends and fund share repurchases; ~~statements~~a statement under the caption "Liquidity and Capital Resources - Liquidity - Net Cash Provided by ~~Operating Activities - Cash Equivalents and Working Capital Deficit" regarding management's expectation that cash in market will be utilized to fund Flipkart's operations; a statement under the caption "Liquidity and Capital Resources~~ - ~~Liquidity - Net Cash Used in~~ Financing Activities - Dividends" regarding the payment of annual dividends in fiscal ~~2022 and fiscal 2023;~~2024; a statement under the caption "Liquidity and Capital Resources - Liquidity - Net Cash ~~Used~~Provided by in Financing Activities - Company Share Repurchase Program" regarding funding of our share repurchase program; statements under the caption "Liquidity and Capital Resources - Capital Resources" regarding management's expectations regarding the Company's cash flows from operations, current cash position, short-term borrowings and access to capital markets continuing to be sufficient to meet its anticipated ~~operating~~ cash ~~needs,~~requirements and contractual obligations, the Company's commercial paper and long-term debt ratings continuing to enable it to refinance its debts at favorable rates, factors that could affect its credit ratings, and the effect that lower credit ratings would have on its access to capital and credit markets and borrowing costs; and statements under the caption "Other Matters" regarding the contingent liabilities of the Company that may or may not result in the incurrence of a material liability by the Company;

•in Part I, Item 4 "Controls and Procedures": statements regarding the effect of changes to systems and processes on our internal control over financial reporting; and

•in Part II, Item 1 "Legal Proceedings": statements regarding the effect that possible losses or the range of possible losses that might be incurred in connection with the legal proceedings and other matters discussed therein may have on our financial condition or results of operations.

3032

Table of Contents

Risks, Factors and Uncertainties Regarding Our Business

These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including:

Economic Factors

•economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates;

•currency exchange rate fluctuations;

•changes in market rates of interest;

•inflation or deflation, generally and in certain product categories;

•transportation, energy and utility costs;

•commodity prices, including the prices of oil and natural gas;

•changes in market levels of wages;

•changes in the size of various markets, including eCommerce markets;

•unemployment levels;

•consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels, and demand for certain merchandise;

•trends in consumer shopping habits around the world and in the markets in which Walmart operates;

•consumer enrollment in health and drug insurance programs and such programs' reimbursement rates and drug formularies; and

•initiatives of competitors, competitors' entry into and expansion in Walmart's markets or lines of business, and competitive pressures.

Operating Factors

•the amount of Walmart's net sales and operating expenses denominated in U.S. dollar and various foreign currencies;

•the financial performance of Walmart and each of its segments, including the amount of Walmart's cash flow during various periods;

•customer transaction and average ticket in Walmart's stores and clubs and on its eCommerce platforms;

•the mix of merchandise Walmart sells and its customers purchase;

•the availability of goods from suppliers and the cost of goods acquired from suppliers;

•the effectiveness of the implementation and operation of Walmart's strategies, plans, programs and initiatives;

•the financial and operational impacts of our investments in eCommerce, technology, talent, and automation;

•COVID-19 related challenges, including reduced customer transactions and tickets, reduced store hours, shifts in demand from discretionary products, supply chain disruption and production, labor shortages and increases in labor costs, and dissemination of global vaccines, as well as potential impacts of any related vaccine mandates on our workforce;

•the impact of acquisitions, divestitures, store or club closures, and other strategic decisions;

•Walmart's ability to successfully integrate acquired businesses;

•unexpected changes in Walmart's objectives and plans;

•the amount of shrinkage Walmart experiences;

•consumer acceptance of and response to Walmart's stores and clubs, eCommerce platforms, programs, merchandise offerings and delivery methods;

•Walmart's gross profit margins, including pharmacy margins and margins of other product categories;

•the selling prices of gasoline and diesel fuel;

•disruption of seasonal buying patterns in Walmart's markets;

•disruptions in Walmart's supply chain and inventory management;

•cybersecurity events affecting Walmart and related costs and impact of any disruption in business;

•Walmart's labor costs, including healthcare and other benefit costs;

•Walmart's casualty and accident-related costs and insurance costs;

•the size of and turnover in Walmart's workforce and the number of associates at various pay levels within that workforce;

•the availability of necessary personnel to staff Walmart's stores, clubs and other facilities;

•delays in the opening of new, expanded, relocated or remodeled units;

•developments in, and the outcome of, legal and regulatory proceedings and investigations to which Walmart is a party or is subject, and the liabilities, obligations and expenses, if any, that Walmart may incur in connection therewith;

•changes in the credit ratings assigned to the Company's commercial paper and debt securities by credit rating agencies;

•Walmart's effective tax rate; and

•unanticipated changes in accounting judgments and estimates.

3133

Table of Contents

Regulatory and Other Factors

•changes in existing, tax, labor and other laws and changes in tax rates, including the enactment of laws and the adoption and interpretation of administrative rules and regulations;

•the imposition of new taxes on imports, new tariffs and changes in existing tariff rates;

•the imposition of new trade restrictions and changes in existing trade restrictions;

•adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives;

•changes in government-funded benefit programs and the extent and effectiveness of any further COVID-19 related stimulus packages;

•changes in currency control laws;

•changes in the level of public assistance payments;

•one or more prolonged federal government shutdowns;

•the timing of federal income tax refunds;

•natural disasters, changes in climate, catastrophic events and global health epidemics or pandemics, including COVID-19; and

•changes in generally accepted accounting principles in the United States.

Other Risk Factors; No Duty to Update

This Quarterly Report on Form 10-Q should be read in conjunction with Walmart's Annual Report on Form 10-K for the fiscal year ended January 31, ~~2022~~2023 and all of Walmart's subsequent other filings with the Securities and Exchange Commission. Walmart urges investors to consider all of the risks, uncertainties and other factors disclosed in these filings carefully in evaluating the forward-looking statements contained in this Quarterly Report on Form 10-Q. The Company cannot assure you that the results or developments anticipated by the Company and reflected or implied by any forward-looking statement contained in this Quarterly Report on Form 10-Q will be realized or, even if substantially realized, that those results or developments will result in the forecasted or expected consequences for the Company or affect the Company, its operations or its financial performance as the Company has forecasted or expected. As a result of the matters discussed above and other matters, including changes in facts, assumptions not being realized or other factors, the actual results relating to the subject matter of any forward-looking statement in this Quarterly Report on Form 10-Q may differ materially from the anticipated results expressed or implied in that forward-looking statement. The forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date of this report, and Walmart undertakes no obligation to update any such statements to reflect subsequent events or circumstances.

3234

Table of Contents

Item 6. Exhibits

The following documents are filed as an exhibit to this Quarterly Report on Form 10-Q:


Exhibit 3.1						Restated Certificate of Incorporation of the Company dated February 1, 2018 is incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K that the Company filed on February 1, 2018

Exhibit 3.2						Amended and Restated Bylaws of the Company dated ~~July 23, 2019~~November 10, 2022 are incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K that the Company filed on ~~July 26, 2019~~November 16, 2022



Exhibit 31.1*						Chief Executive Officer Section 302 Certification

Exhibit 31.2*						Chief Financial Officer Section 302 Certification

Exhibit 32.1**						Chief Executive Officer Section 906 Certification

Exhibit 32.2**						Chief Financial Officer Section 906 Certification



Exhibit 99.1*						~~State Court~~ Opioids -Related Litigation Case Citations and Currently Scheduled Trial Dates









Exhibit 101.INS*						Inline XBRL Instance Document

Exhibit 101.SCH*						Inline XBRL Taxonomy Extension Schema Document

Exhibit 101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit 101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document

Exhibit 101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document

Exhibit 101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document

Exhibit 104						The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended ~~July 31, 2022,~~April 30, 2023, formatted in Inline XBRL (included in Exhibit 101)


*			Filed herewith as an Exhibit.
**			Furnished herewith as an Exhibit.

3335

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

WALMART INC.


Date: ~~September~~June 2, ~~2022~~2023	By:	/s/ C. Douglas McMillon
		C. Douglas McMillon President and Chief Executive Officer (Principal Executive Officer)

Date: ~~September~~June 2, ~~2022~~2023	By:	/s/ John David Rainey
		John David Rainey Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Date: ~~September~~June 2, ~~2022~~2023	By:	/s/ David M. Chojnowski
		David M. Chojnowski Senior Vice President and Controller (Principal Accounting Officer)

3436


			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	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		1517
	Item 3. Quantitative and Qualitative Disclosures About Market Risk		2527
	Item 4. Controls and Procedures		2527

Part II. Other Information
	Item 1. Legal Proceedings		2628
	Item 1A. Risk Factors		2931
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		2931
	Item 5. Other Information		2931
	Item 6. Exhibits		3335

Signatures			3436