ý
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
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o
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
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Delaware
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71-0415188
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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702 S.W. 8th Street
Bentonville, Arkansas
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72716
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(Address of principal executive offices)
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(Zip Code)
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Large Accelerated Filer
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ý
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Accelerated Filer
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o
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Non-Accelerated Filer
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o
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Smaller Reporting Company
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o
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Page
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Item 1.
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Financial Statements
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Three Months Ended October 31,
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Nine Months Ended October 31,
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||||||||||||
(Amounts in millions, except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$
|
117,176
|
|
|
$
|
116,598
|
|
|
$
|
351,567
|
|
|
$
|
349,930
|
|
Membership and other income
|
|
1,003
|
|
|
810
|
|
|
3,370
|
|
|
2,533
|
|
||||
Total revenues
|
|
118,179
|
|
|
117,408
|
|
|
354,937
|
|
|
352,463
|
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||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
|
87,484
|
|
|
87,446
|
|
|
263,513
|
|
|
263,985
|
|
||||
Operating, selling, general and administrative expenses
|
|
25,576
|
|
|
24,248
|
|
|
74,865
|
|
|
71,015
|
|
||||
Operating income
|
|
5,119
|
|
|
5,714
|
|
|
16,559
|
|
|
17,463
|
|
||||
Interest:
|
|
|
|
|
|
|
|
|
||||||||
Debt
|
|
528
|
|
|
509
|
|
|
1,536
|
|
|
1,555
|
|
||||
Capital lease and financing obligations
|
|
81
|
|
|
64
|
|
|
246
|
|
|
428
|
|
||||
Interest income
|
|
(24
|
)
|
|
(21
|
)
|
|
(70
|
)
|
|
(64
|
)
|
||||
Interest, net
|
|
585
|
|
|
552
|
|
|
1,712
|
|
|
1,919
|
|
||||
Income before income taxes
|
|
4,534
|
|
|
5,162
|
|
|
14,847
|
|
|
15,544
|
|
||||
Provision for income taxes
|
|
1,332
|
|
|
1,748
|
|
|
4,540
|
|
|
5,212
|
|
||||
Consolidated net income
|
|
3,202
|
|
|
3,414
|
|
|
10,307
|
|
|
10,332
|
|
||||
Consolidated net income attributable to noncontrolling interest
|
|
(168
|
)
|
|
(110
|
)
|
|
(421
|
)
|
|
(212
|
)
|
||||
Consolidated net income attributable to Walmart
|
|
$
|
3,034
|
|
|
$
|
3,304
|
|
|
$
|
9,886
|
|
|
$
|
10,120
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to Walmart
|
|
$
|
0.98
|
|
|
$
|
1.03
|
|
|
$
|
3.17
|
|
|
$
|
3.14
|
|
Diluted net income per common share attributable to Walmart
|
|
0.98
|
|
|
1.03
|
|
|
3.16
|
|
|
3.13
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
3,089
|
|
|
3,210
|
|
|
3,114
|
|
|
3,221
|
|
||||
Diluted
|
|
3,100
|
|
|
3,219
|
|
|
3,124
|
|
|
3,231
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.00
|
|
|
$
|
1.96
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Consolidated net income
|
$
|
3,202
|
|
|
$
|
3,414
|
|
|
$
|
10,307
|
|
|
$
|
10,332
|
|
Less consolidated net income attributable to nonredeemable noncontrolling interest
|
(168
|
)
|
|
(110
|
)
|
|
(421
|
)
|
|
(212
|
)
|
||||
Consolidated net income attributable to Walmart
|
3,034
|
|
|
3,304
|
|
|
9,886
|
|
|
10,120
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), net of income taxes
|
|
|
|
|
|
|
|
||||||||
Currency translation and other
|
(757
|
)
|
|
(2,694
|
)
|
|
(1,086
|
)
|
|
(3,941
|
)
|
||||
Net investment hedges
|
258
|
|
|
182
|
|
|
468
|
|
|
101
|
|
||||
Cash flow hedges
|
(179
|
)
|
|
(56
|
)
|
|
(123
|
)
|
|
(75
|
)
|
||||
Minimum pension liability
|
17
|
|
|
(1
|
)
|
|
(89
|
)
|
|
73
|
|
||||
Other comprehensive income (loss), net of income taxes
|
(661
|
)
|
|
(2,569
|
)
|
|
(830
|
)
|
|
(3,842
|
)
|
||||
Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest
|
(2
|
)
|
|
298
|
|
|
92
|
|
|
351
|
|
||||
Other comprehensive income (loss) attributable to Walmart
|
(663
|
)
|
|
(2,271
|
)
|
|
(738
|
)
|
|
(3,491
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income, net of income taxes
|
2,541
|
|
|
845
|
|
|
9,477
|
|
|
6,490
|
|
||||
Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest
|
(170
|
)
|
|
188
|
|
|
(329
|
)
|
|
139
|
|
||||
Comprehensive income attributable to Walmart
|
$
|
2,371
|
|
|
$
|
1,033
|
|
|
$
|
9,148
|
|
|
$
|
6,629
|
|
|
|
October 31,
|
|
January 31,
|
|
October 31,
|
||||||
(Amounts in millions)
|
|
2016
|
|
2016
|
|
2015
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
5,939
|
|
|
$
|
8,705
|
|
|
$
|
6,990
|
|
Receivables, net
|
|
5,344
|
|
|
5,624
|
|
|
5,012
|
|
|||
Inventories
|
|
49,822
|
|
|
44,469
|
|
|
50,706
|
|
|||
Prepaid expenses and other
|
|
2,296
|
|
|
1,441
|
|
|
2,404
|
|
|||
Total current assets
|
|
63,401
|
|
|
60,239
|
|
|
65,112
|
|
|||
Property and equipment:
|
|
|
|
|
|
|
||||||
Property and equipment
|
|
179,667
|
|
|
176,958
|
|
|
176,660
|
|
|||
Less accumulated depreciation
|
|
(70,991
|
)
|
|
(66,787
|
)
|
|
(65,825
|
)
|
|||
Property and equipment, net
|
|
108,676
|
|
|
110,171
|
|
|
110,835
|
|
|||
Property under capital lease and financing obligations:
|
|
|
|
|
|
|
||||||
Property under capital lease and financing obligations
|
|
11,482
|
|
|
11,096
|
|
|
10,948
|
|
|||
Less accumulated amortization
|
|
(5,070
|
)
|
|
(4,751
|
)
|
|
(4,827
|
)
|
|||
Property under capital lease and financing obligations, net
|
|
6,412
|
|
|
6,345
|
|
|
6,121
|
|
|||
|
|
|
|
|
|
|
||||||
Goodwill
|
|
17,792
|
|
|
16,695
|
|
|
17,051
|
|
|||
Other assets and deferred charges
|
|
10,576
|
|
|
6,131
|
|
|
6,025
|
|
|||
Total assets
|
|
$
|
206,857
|
|
|
$
|
199,581
|
|
|
$
|
205,144
|
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
|
||||||
Short-term borrowings
|
|
$
|
5,082
|
|
|
$
|
2,708
|
|
|
$
|
4,960
|
|
Accounts payable
|
|
42,990
|
|
|
38,487
|
|
|
40,553
|
|
|||
Dividends payable
|
|
1,541
|
|
|
—
|
|
|
1,589
|
|
|||
Accrued liabilities
|
|
21,243
|
|
|
19,607
|
|
|
19,499
|
|
|||
Accrued income taxes
|
|
459
|
|
|
521
|
|
|
587
|
|
|||
Long-term debt due within one year
|
|
2,266
|
|
|
2,745
|
|
|
2,746
|
|
|||
Capital lease and financing obligations due within one year
|
|
549
|
|
|
551
|
|
|
558
|
|
|||
Total current liabilities
|
|
74,130
|
|
|
64,619
|
|
|
70,492
|
|
|||
|
|
|
|
|
|
|
||||||
Long-term debt
|
|
36,178
|
|
|
38,214
|
|
|
38,617
|
|
|||
Long-term capital lease and financing obligations
|
|
5,930
|
|
|
5,816
|
|
|
5,581
|
|
|||
Deferred income taxes and other
|
|
10,144
|
|
|
7,321
|
|
|
7,824
|
|
|||
|
|
|
|
|
|
|
||||||
Commitments and contingencies
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Equity:
|
|
|
|
|
|
|
||||||
Common stock
|
|
308
|
|
|
317
|
|
|
321
|
|
|||
Capital in excess of par value
|
|
2,084
|
|
|
1,805
|
|
|
2,006
|
|
|||
Retained earnings
|
|
87,636
|
|
|
90,021
|
|
|
87,903
|
|
|||
Accumulated other comprehensive loss
|
|
(12,335
|
)
|
|
(11,597
|
)
|
|
(10,659
|
)
|
|||
Total Walmart shareholders' equity
|
|
77,693
|
|
|
80,546
|
|
|
79,571
|
|
|||
Nonredeemable noncontrolling interest
|
|
2,782
|
|
|
3,065
|
|
|
3,059
|
|
|||
Total equity
|
|
80,475
|
|
|
83,611
|
|
|
82,630
|
|
|||
Total liabilities and equity
|
|
$
|
206,857
|
|
|
$
|
199,581
|
|
|
$
|
205,144
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
Total
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
Capital in
|
|
|
|
Other
|
|
Walmart
|
|
Nonredeemable
|
|
|
|||||||||||||||
(Amounts in millions)
|
Common Stock
|
|
Excess of
|
|
Retained
|
|
Comprehensive
|
|
Shareholders'
|
|
Noncontrolling
|
|
Total
|
|||||||||||||||||
Shares
|
|
Amount
|
|
Par Value
|
|
Earnings
|
|
Loss
|
|
Equity
|
|
Interest
|
|
Equity
|
||||||||||||||||
Balances as of February 1, 2016
|
3,162
|
|
|
$
|
317
|
|
|
$
|
1,805
|
|
|
$
|
90,021
|
|
|
$
|
(11,597
|
)
|
|
$
|
80,546
|
|
|
$
|
3,065
|
|
|
$
|
83,611
|
|
Consolidated net income
|
—
|
|
|
—
|
|
|
—
|
|
|
9,886
|
|
|
—
|
|
|
9,886
|
|
|
421
|
|
|
10,307
|
|
|||||||
Other comprehensive income (loss), net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(738
|
)
|
|
(738
|
)
|
|
(92
|
)
|
|
(830
|
)
|
|||||||
Cash dividends declared ($2.00 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,221
|
)
|
|
—
|
|
|
(6,221
|
)
|
|
—
|
|
|
(6,221
|
)
|
|||||||
Purchase of Company stock
|
(89
|
)
|
|
(9
|
)
|
|
(125
|
)
|
|
(6,044
|
)
|
|
—
|
|
|
(6,178
|
)
|
|
—
|
|
|
(6,178
|
)
|
|||||||
Cash dividend declared to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(522
|
)
|
|
(522
|
)
|
|||||||
Other
|
6
|
|
|
—
|
|
|
404
|
|
|
(6
|
)
|
|
—
|
|
|
398
|
|
|
(90
|
)
|
|
308
|
|
|||||||
Balances as of October 31, 2016
|
3,079
|
|
|
$
|
308
|
|
|
$
|
2,084
|
|
|
$
|
87,636
|
|
|
$
|
(12,335
|
)
|
|
$
|
77,693
|
|
|
$
|
2,782
|
|
|
$
|
80,475
|
|
|
|
Nine Months Ended October 31,
|
||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Consolidated net income
|
|
$
|
10,307
|
|
|
$
|
10,332
|
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
7,374
|
|
|
7,023
|
|
||
Deferred income taxes
|
|
1,167
|
|
|
(987
|
)
|
||
Other operating activities
|
|
(387
|
)
|
|
644
|
|
||
Changes in certain assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
||||
Receivables, net
|
|
271
|
|
|
783
|
|
||
Inventories
|
|
(5,516
|
)
|
|
(6,637
|
)
|
||
Accounts payable
|
|
5,121
|
|
|
3,603
|
|
||
Accrued liabilities
|
|
1,256
|
|
|
662
|
|
||
Accrued income taxes
|
|
51
|
|
|
(418
|
)
|
||
Net cash provided by operating activities
|
|
19,644
|
|
|
15,005
|
|
||
|
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
||||
Payments for property and equipment
|
|
(7,459
|
)
|
|
(8,223
|
)
|
||
Proceeds from the disposal of property and equipment
|
|
783
|
|
|
362
|
|
||
Proceeds from the disposal of certain operations
|
|
—
|
|
|
246
|
|
||
Purchase of available for sale securities
|
|
(1,901
|
)
|
|
—
|
|
||
Investment and business acquisitions, net of cash acquired
|
|
(2,406
|
)
|
|
—
|
|
||
Other investing activities
|
|
(67
|
)
|
|
48
|
|
||
Net cash used in investing activities
|
|
(11,050
|
)
|
|
(7,567
|
)
|
||
|
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
||||
Net change in short-term borrowings
|
|
2,302
|
|
|
3,537
|
|
||
Proceeds from issuance of long-term debt
|
|
134
|
|
|
41
|
|
||
Payments of long-term debt
|
|
(2,040
|
)
|
|
(4,422
|
)
|
||
Dividends paid
|
|
(4,682
|
)
|
|
(4,728
|
)
|
||
Purchase of Company stock
|
|
(6,254
|
)
|
|
(1,720
|
)
|
||
Dividends paid to noncontrolling interest
|
|
(320
|
)
|
|
(609
|
)
|
||
Purchase of noncontrolling interest
|
|
(89
|
)
|
|
(890
|
)
|
||
Other financing activities
|
|
(186
|
)
|
|
(468
|
)
|
||
Net cash used in financing activities
|
|
(11,135
|
)
|
|
(9,259
|
)
|
||
|
|
|
|
|
||||
Effect of exchange rates on cash and cash equivalents
|
|
(225
|
)
|
|
(324
|
)
|
||
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
|
(2,766
|
)
|
|
(2,145
|
)
|
||
Cash and cash equivalents at beginning of year
|
|
8,705
|
|
|
9,135
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
5,939
|
|
|
$
|
6,990
|
|
•
|
insurance companies resulting from pharmacy sales;
|
•
|
banks for customer credit and debit cards and electronic bank transfers that take in excess of seven days to process;
|
•
|
consumer financing programs in certain international operations;
|
•
|
suppliers for marketing or incentive programs; and
|
•
|
real estate transactions.
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions, except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Numerator
|
|
|
|
|
|
|
|
|
||||||||
Consolidated net income
|
|
$
|
3,202
|
|
|
$
|
3,414
|
|
|
$
|
10,307
|
|
|
$
|
10,332
|
|
Consolidated net income attributable to noncontrolling interest
|
|
(168
|
)
|
|
(110
|
)
|
|
(421
|
)
|
|
(212
|
)
|
||||
Consolidated net income attributable to Walmart
|
|
$
|
3,034
|
|
|
$
|
3,304
|
|
|
$
|
9,886
|
|
|
$
|
10,120
|
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding, basic
|
|
3,089
|
|
|
3,210
|
|
|
3,114
|
|
|
3,221
|
|
||||
Dilutive impact of stock options and other share-based awards
|
|
11
|
|
|
9
|
|
|
10
|
|
|
10
|
|
||||
Weighted-average common shares outstanding, diluted
|
|
3,100
|
|
|
3,219
|
|
|
3,124
|
|
|
3,231
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share attributable to Walmart
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.98
|
|
|
$
|
1.03
|
|
|
$
|
3.17
|
|
|
$
|
3.14
|
|
Diluted
|
|
0.98
|
|
|
1.03
|
|
|
3.16
|
|
|
3.13
|
|
(Amounts in millions and net of income taxes)
|
|
Currency Translation
and Other
|
|
Net Investment Hedges
|
|
Cash Flow Hedges
|
|
Minimum
Pension Liability
|
|
Total
|
||||||||||
Balances as of February 1, 2016
|
|
$
|
(11,690
|
)
|
|
$
|
1,022
|
|
|
$
|
(336
|
)
|
|
$
|
(593
|
)
|
|
$
|
(11,597
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(994
|
)
|
|
468
|
|
|
(151
|
)
|
|
(83
|
)
|
|
(760
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
28
|
|
|
(6
|
)
|
|
22
|
|
|||||
Balances as of October 31, 2016
|
|
$
|
(12,684
|
)
|
|
$
|
1,490
|
|
|
$
|
(459
|
)
|
|
$
|
(682
|
)
|
|
$
|
(12,335
|
)
|
(Amounts in millions)
|
|
Long-term debt due within one year
|
|
Long-term debt
|
|
Total
|
||||||
Balances as of February 1, 2016
|
|
$
|
2,745
|
|
|
$
|
38,214
|
|
|
$
|
40,959
|
|
Proceeds from long-term debt
|
|
—
|
|
|
134
|
|
|
134
|
|
|||
Repayments of long-term debt
|
|
(2,040
|
)
|
|
—
|
|
|
(2,040
|
)
|
|||
Reclassifications of long-term debt
|
|
1,500
|
|
|
(1,500
|
)
|
|
—
|
|
|||
Other
|
|
61
|
|
|
(670
|
)
|
|
(609
|
)
|
|||
Balances as of October 31, 2016
|
|
$
|
2,266
|
|
|
$
|
36,178
|
|
|
$
|
38,444
|
|
(Amounts in millions)
|
|
|
|
|
|
|
|
|
||
Maturity Date
|
|
Principal Amount
|
|
Fixed vs. Floating
|
|
Interest Rate
|
|
Repayment
|
||
April 11, 2016
|
|
1,000 USD
|
|
Fixed
|
|
0.600%
|
|
$
|
1,000
|
|
April 15, 2016
|
|
1,000 USD
|
|
Fixed
|
|
2.800%
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
$
|
2,000
|
|
•
|
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.
|
|
October 31, 2016
|
|
January 31, 2016
|
||||||||||||
(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
|
$
|
5,000
|
|
|
$
|
172
|
|
|
$
|
5,000
|
|
|
$
|
173
|
|
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as net investment hedges
|
1,250
|
|
|
532
|
|
|
1,250
|
|
|
319
|
|
||||
Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges
|
3,970
|
|
|
(837
|
)
|
|
4,132
|
|
|
(609
|
)
|
||||
Total
|
$
|
10,220
|
|
|
$
|
(133
|
)
|
|
$
|
10,382
|
|
|
$
|
(117
|
)
|
|
|
October 31, 2016
|
|
January 31, 2016
|
||||||||||||
(Amounts in millions)
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Long-term debt, including amounts due within one year
|
|
$
|
38,444
|
|
|
$
|
46,797
|
|
|
$
|
40,959
|
|
|
$
|
46,965
|
|
|
October 31, 2016
|
|
January 31, 2016
|
||||||||||||||||||||
(Amounts in millions)
|
Fair Value
Instruments
|
|
Net Investment
Instruments
|
|
Cash Flow
Instruments
|
|
Fair Value
Instruments
|
|
Net Investment
Instruments
|
|
Cash Flow
Instruments
|
||||||||||||
Derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets and deferred charges
|
$
|
172
|
|
|
$
|
532
|
|
|
$
|
—
|
|
|
$
|
173
|
|
|
$
|
319
|
|
|
$
|
129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income taxes and other
|
—
|
|
|
—
|
|
|
837
|
|
|
—
|
|
|
—
|
|
|
738
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonderivative hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
3,142
|
|
|
—
|
|
|
—
|
|
|
3,644
|
|
|
—
|
|
|
|
Nine Months Ended October 31,
|
||||||
(Amounts in millions, except per share data)
|
|
2016
|
|
2015
|
||||
Total number of shares repurchased
|
|
90.6
|
|
|
23.2
|
|
||
Average price paid per share
|
|
$
|
69.04
|
|
|
$
|
74.20
|
|
Total amount paid for share repurchases
|
|
$
|
6,254
|
|
|
$
|
1,720
|
|
Record Date
|
|
Payable Date
|
March 11, 2016
|
|
April 4, 2016
|
May 13, 2016
|
|
June 6, 2016
|
August 12, 2016
|
|
September 6, 2016
|
December 9, 2016
|
|
January 3, 2017
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Ongoing inquiries and investigations
|
|
$
|
24
|
|
|
$
|
22
|
|
|
$
|
68
|
|
|
$
|
70
|
|
Global compliance program and organizational enhancements
|
|
5
|
|
|
8
|
|
|
14
|
|
|
23
|
|
||||
Total
|
|
$
|
29
|
|
|
$
|
30
|
|
|
$
|
82
|
|
|
$
|
93
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
|
||||||||
Walmart U.S.
|
|
$
|
74,550
|
|
|
$
|
72,712
|
|
|
$
|
224,086
|
|
|
$
|
216,916
|
|
Walmart International
|
|
28,390
|
|
|
29,811
|
|
|
85,094
|
|
|
90,726
|
|
||||
Sam's Club
|
|
14,236
|
|
|
14,075
|
|
|
42,387
|
|
|
42,288
|
|
||||
Net sales
|
|
$
|
117,176
|
|
|
$
|
116,598
|
|
|
$
|
351,567
|
|
|
$
|
349,930
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Walmart U.S.
|
|
$
|
3,999
|
|
|
$
|
4,506
|
|
|
$
|
12,750
|
|
|
$
|
13,964
|
|
Walmart International
|
|
1,354
|
|
|
1,338
|
|
|
4,245
|
|
|
3,685
|
|
||||
Sam's Club
|
|
396
|
|
|
539
|
|
|
1,281
|
|
|
1,394
|
|
||||
Corporate and support
|
|
(630
|
)
|
|
(669
|
)
|
|
(1,717
|
)
|
|
(1,580
|
)
|
||||
Operating income
|
|
5,119
|
|
|
5,714
|
|
|
16,559
|
|
|
17,463
|
|
||||
Interest, net
|
|
585
|
|
|
552
|
|
|
1,712
|
|
|
1,919
|
|
||||
Income before income taxes
|
|
$
|
4,534
|
|
|
$
|
5,162
|
|
|
$
|
14,847
|
|
|
$
|
15,544
|
|
•
|
Walmart U.S. is our largest segment with three primary store formats, as well as digital retail. Of our three reportable segments, Walmart U.S. has historically had the highest gross profit as a percentage of net sales ("gross profit rate"). In addition, it has historically contributed the greatest amount to the Company's net sales and operating income.
|
•
|
Walmart International consists of our operations outside of the U.S. and includes retail, wholesale and other businesses. These businesses consist of numerous formats, including supercenters, supermarkets, hypermarkets, warehouse clubs, including Sam's Clubs, cash & carry, home improvement, specialty electronics, apparel stores, drug stores and convenience stores, as well as digital retail. The overall gross profit rate for Walmart International is lower than that of Walmart U.S. because of its merchandise mix. Walmart International is our second largest segment and has grown through acquisitions, as well as by adding retail, wholesale and other units, and expanding digital retail.
|
•
|
Sam's Club consists of membership-only warehouse clubs as well as digital retail. As a membership-only warehouse club, membership income is a significant component of the segment's operating income. Sam's Club operates with a lower gross profit rate and lower operating expenses as a percentage of net sales than our other segments.
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||
(Amounts in millions)
|
|
Net Sales
|
|
Percent
of Total
|
|
Percent
Change
|
|
Net Sales
|
|
Percent
of Total
|
|
Net Sales
|
|
Percent
of Total
|
|
Percent
Change
|
|
Net Sales
|
|
Percent
of Total
|
||||||||||||||
Walmart U.S.
|
|
$
|
74,550
|
|
|
63.7
|
%
|
|
2.5
|
%
|
|
$
|
72,712
|
|
|
62.3
|
%
|
|
$
|
224,086
|
|
|
63.7
|
%
|
|
3.3
|
%
|
|
$
|
216,916
|
|
|
62.0
|
%
|
Walmart International
|
|
28,390
|
|
|
24.2
|
%
|
|
(4.8
|
)%
|
|
29,811
|
|
|
25.6
|
%
|
|
85,094
|
|
|
24.2
|
%
|
|
(6.2
|
)%
|
|
90,726
|
|
|
25.9
|
%
|
||||
Sam's Club
|
|
14,236
|
|
|
12.1
|
%
|
|
1.1
|
%
|
|
14,075
|
|
|
12.1
|
%
|
|
42,387
|
|
|
12.1
|
%
|
|
0.2
|
%
|
|
42,288
|
|
|
12.1
|
%
|
||||
Net sales
|
|
$
|
117,176
|
|
|
100.0
|
%
|
|
0.5
|
%
|
|
$
|
116,598
|
|
|
100.0
|
%
|
|
$
|
351,567
|
|
|
100.0
|
%
|
|
0.5
|
%
|
|
$
|
349,930
|
|
|
100.0
|
%
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
With Fuel
|
|
Fuel Impact
|
|
With Fuel
|
|
Fuel Impact
|
||||||||||||||||
Walmart U.S.
|
|
0.8
|
%
|
|
1.4
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
1.7
|
%
|
|
1.3
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
Sam's Club
|
|
0.6
|
%
|
|
(3.2
|
)%
|
|
(0.7
|
)%
|
|
(3.8
|
)%
|
|
(0.3
|
)%
|
|
(3.2
|
)%
|
|
(1.4
|
)%
|
|
(3.8
|
)%
|
Total U.S.
|
|
0.8
|
%
|
|
0.6
|
%
|
|
(0.1
|
)%
|
|
(0.7
|
)%
|
|
1.4
|
%
|
|
0.5
|
%
|
|
(0.2
|
)%
|
|
(0.7
|
)%
|
|
|
For the Trailing Twelve Months Ending October 31,
|
||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
||||
CALCULATION OF RETURN ON INVESTMENT
|
||||||||
Numerator
|
|
|
|
|
||||
Operating income
|
|
$
|
23,201
|
|
|
$
|
25,412
|
|
+ Interest income
|
|
86
|
|
|
101
|
|
||
+ Depreciation and amortization
|
|
9,805
|
|
|
9,315
|
|
||
+ Rent
|
|
2,610
|
|
|
2,579
|
|
||
= Adjusted operating income
|
|
$
|
35,702
|
|
|
$
|
37,407
|
|
|
|
|
|
|
||||
Denominator
|
|
|
|
|
||||
Average total assets
(1)
|
|
$
|
206,001
|
|
|
$
|
206,406
|
|
+ Average accumulated depreciation and amortization
(1)
|
|
73,357
|
|
|
68,143
|
|
||
- Average accounts payable
(1)
|
|
41,772
|
|
|
40,105
|
|
||
- Average accrued liabilities
(1)
|
|
20,371
|
|
|
19,136
|
|
||
+ Rent x 8
|
|
20,880
|
|
|
20,632
|
|
||
= Average invested capital
|
|
$
|
238,095
|
|
|
$
|
235,940
|
|
Return on investment (ROI)
|
|
15.0
|
%
|
|
15.9
|
%
|
||
|
|
|
|
|
||||
CALCULATION OF RETURN ON ASSETS
|
||||||||
Numerator
|
|
|
|
|
||||
Consolidated net income
|
|
$
|
15,055
|
|
|
$
|
15,520
|
|
Denominator
|
|
|
|
|
||||
Average total assets
(1)
|
|
$
|
206,001
|
|
|
$
|
206,406
|
|
Return on assets (ROA)
|
|
7.3
|
%
|
|
7.5
|
%
|
|
|
As of October 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
Certain Balance Sheet Data
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
206,857
|
|
|
$
|
205,144
|
|
|
$
|
207,668
|
|
Accumulated depreciation and amortization
|
|
76,061
|
|
|
70,652
|
|
|
65,634
|
|
|||
Accounts payable
|
|
42,990
|
|
|
40,553
|
|
|
39,656
|
|
|||
Accrued liabilities
|
|
21,243
|
|
|
19,499
|
|
|
18,773
|
|
|
|
Nine Months Ended October 31,
|
||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
||||
Net cash provided by operating activities
|
|
$
|
19,644
|
|
|
$
|
15,005
|
|
Payments for property and equipment
|
|
(7,459
|
)
|
|
(8,223
|
)
|
||
Free cash flow
|
|
$
|
12,185
|
|
|
$
|
6,782
|
|
|
|
|
|
|
||||
Net cash used in investing activities
(1)
|
|
$
|
(11,050
|
)
|
|
$
|
(7,567
|
)
|
Net cash used in financing activities
|
|
(11,135
|
)
|
|
(9,259
|
)
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions, except unit counts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Total revenues
|
|
$
|
118,179
|
|
|
$
|
117,408
|
|
|
$
|
354,937
|
|
|
$
|
352,463
|
|
Percentage change from comparable period
|
|
0.7
|
%
|
|
(1.3
|
)%
|
|
0.7
|
%
|
|
(0.5
|
)%
|
||||
Net sales
|
|
$
|
117,176
|
|
|
$
|
116,598
|
|
|
$
|
351,567
|
|
|
$
|
349,930
|
|
Percentage change from comparable period
|
|
0.5
|
%
|
|
(1.3
|
)%
|
|
0.5
|
%
|
|
(0.5
|
)%
|
||||
Total U.S. calendar comparable store and club sales increase
|
|
0.8
|
%
|
|
0.6
|
%
|
|
1.4
|
%
|
|
0.5
|
%
|
||||
Gross profit margin as a percentage of net sales
|
|
25.3
|
%
|
|
25.0
|
%
|
|
25.1
|
%
|
|
24.6
|
%
|
||||
Operating income
|
|
$
|
5,119
|
|
|
$
|
5,714
|
|
|
$
|
16,559
|
|
|
$
|
17,463
|
|
Operating income as a percentage of net sales
|
|
4.4
|
%
|
|
4.9
|
%
|
|
4.7
|
%
|
|
5.0
|
%
|
||||
Consolidated net income
|
|
$
|
3,202
|
|
|
$
|
3,414
|
|
|
$
|
10,307
|
|
|
$
|
10,332
|
|
Unit counts at period end
|
|
11,593
|
|
|
11,554
|
|
|
11,593
|
|
|
11,554
|
|
||||
Retail square feet at period end
|
|
1,157
|
|
|
1,145
|
|
|
1,157
|
|
|
1,145
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions, except unit counts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales
|
|
$
|
74,550
|
|
|
$
|
72,712
|
|
|
$
|
224,086
|
|
|
$
|
216,916
|
|
Percentage change from comparable period
|
|
2.5
|
%
|
|
3.8
|
%
|
|
3.3
|
%
|
|
4.0
|
%
|
||||
Calendar comparable store sales increase
|
|
0.8
|
%
|
|
1.4
|
%
|
|
1.7
|
%
|
|
1.3
|
%
|
||||
Operating income
|
|
$
|
3,999
|
|
|
$
|
4,506
|
|
|
$
|
12,750
|
|
|
$
|
13,964
|
|
Operating income as a percentage of net sales
|
|
5.4
|
%
|
|
6.2
|
%
|
|
5.7
|
%
|
|
6.4
|
%
|
||||
Unit counts at period end
|
|
4,648
|
|
|
4,631
|
|
|
4,648
|
|
|
4,631
|
|
||||
Retail square feet at period end
|
|
697
|
|
|
688
|
|
|
697
|
|
|
688
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions, except unit counts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales
|
|
$
|
28,390
|
|
|
$
|
29,811
|
|
|
$
|
85,094
|
|
|
$
|
90,726
|
|
Percentage change from comparable period
|
|
(4.8
|
)%
|
|
(11.4
|
)%
|
|
(6.2
|
)%
|
|
(9.2
|
)%
|
||||
Operating income
|
|
$
|
1,354
|
|
|
$
|
1,338
|
|
|
$
|
4,245
|
|
|
$
|
3,685
|
|
Operating income as a percentage of net sales
|
|
4.8
|
%
|
|
4.5
|
%
|
|
5.0
|
%
|
|
4.1
|
%
|
||||
Unit counts at period end
|
|
6,289
|
|
|
6,271
|
|
|
6,289
|
|
|
6,271
|
|
||||
Retail square feet at period end
|
|
372
|
|
|
370
|
|
|
372
|
|
|
370
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
(Amounts in millions, except unit counts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Including Fuel
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$
|
14,236
|
|
|
$
|
14,075
|
|
|
$
|
42,387
|
|
|
$
|
42,288
|
|
Percentage change from comparable period
|
|
1.1
|
%
|
|
(2.2
|
)%
|
|
0.2
|
%
|
|
(2.0
|
)%
|
||||
Calendar comparable club sales increase (decrease)
|
|
0.6
|
%
|
|
(3.2
|
)%
|
|
(0.3
|
)%
|
|
(3.2
|
)%
|
||||
Operating income
|
|
$
|
396
|
|
|
$
|
539
|
|
|
$
|
1,281
|
|
|
$
|
1,394
|
|
Operating income as a percentage of net sales
|
|
2.8
|
%
|
|
3.8
|
%
|
|
3.0
|
%
|
|
3.3
|
%
|
||||
Unit counts at period end
|
|
656
|
|
|
652
|
|
|
656
|
|
|
652
|
|
||||
Retail square feet at period end
|
|
88
|
|
|
87
|
|
|
88
|
|
|
87
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Excluding Fuel
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$
|
13,169
|
|
|
$
|
12,935
|
|
|
$
|
39,345
|
|
|
$
|
38,693
|
|
Percentage change from comparable period
|
|
1.8
|
%
|
|
1.6
|
%
|
|
1.7
|
%
|
|
1.9
|
%
|
||||
Operating income
|
|
$
|
381
|
|
|
$
|
493
|
|
|
$
|
1,243
|
|
|
$
|
1,350
|
|
Operating income as a percentage of net sales
|
|
2.9
|
%
|
|
3.8
|
%
|
|
3.2
|
%
|
|
3.5
|
%
|
|
|
Nine Months Ended October 31,
|
||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
||||
Net cash provided by operating activities
|
|
$
|
19,644
|
|
|
$
|
15,005
|
|
|
|
Nine Months Ended October 31,
|
||||||
(Amounts in millions)
|
|
2016
|
|
2015
|
||||
Net cash used in investing activities
|
|
$
|
(11,050
|
)
|
|
$
|
(7,567
|
)
|
|
|
Nine Months Ended October 31,
|
||||
(Amounts in millions)
|
|
2016
|
|
2015
|
||
Net cash used in financing activities
|
|
(11,135
|
)
|
|
(9,259
|
)
|
(Amounts in millions)
|
|
Long-term debt due within one year
|
|
Long-term debt
|
|
Total
|
||||||
Balances as of February 1, 2016
|
|
$
|
2,745
|
|
|
$
|
38,214
|
|
|
$
|
40,959
|
|
Proceeds from issuance of long-term debt
|
|
—
|
|
|
134
|
|
|
134
|
|
|||
Payments of long-term debt
|
|
(2,040
|
)
|
|
—
|
|
|
(2,040
|
)
|
|||
Reclassifications of long-term debt
|
|
1,500
|
|
|
(1,500
|
)
|
|
—
|
|
|||
Other
|
|
61
|
|
|
(670
|
)
|
|
(609
|
)
|
|||
Balances as of October 31, 2016
|
|
$
|
2,266
|
|
|
$
|
36,178
|
|
|
$
|
38,444
|
|
Record Date
|
|
Payable Date
|
March 11, 2016
|
|
April 4, 2016
|
May 13, 2016
|
|
June 6, 2016
|
August 12, 2016
|
|
September 6, 2016
|
December 9, 2016
|
|
January 3, 2017
|
|
|
Nine Months Ended October 31,
|
||||||
(Amounts in millions, except per share data)
|
|
2016
|
|
2015
|
||||
Total number of shares repurchased
|
|
90.6
|
|
|
23.2
|
|
||
Average price paid per share
|
|
$
|
69.04
|
|
|
$
|
74.20
|
|
Total amount paid for share repurchases
|
|
$
|
6,254
|
|
|
$
|
1,720
|
|
Rating agency
|
|
Commercial paper
|
|
Long-term debt
|
Standard & Poor's
|
|
A-1+
|
|
AA
|
Moody's Investors Service
|
|
P-1
|
|
Aa2
|
Fitch Ratings
|
|
F1+
|
|
AA
|
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
(billions)
|
||||||
August 1-31, 2016
|
|
6,387,184
|
|
|
$
|
72.87
|
|
|
6,387,184
|
|
|
$
|
12.2
|
|
September 1-30, 2016
|
|
6,068,804
|
|
|
72.03
|
|
|
6,068,804
|
|
|
11.8
|
|
||
October 1-31, 2016
|
|
7,372,047
|
|
|
69.20
|
|
|
7,372,047
|
|
|
11.3
|
|
||
Total
|
|
19,828,035
|
|
|
|
|
19,828,035
|
|
|
|
•
|
statements in Note 1 to Walmart's Condensed Consolidated Financial Statements as of and for the three and nine months ended October 31, 2016, regarding management's expectations of or determinations regarding the materiality of any impact of certain ASUs issued by the FASB in 2016; statements in Note 6 to those Condensed Consolidated Financial Statements regarding the expected insignificance of any ineffective portion of certain net investment and cash flow derivative financial instruments to which Walmart is a party and of the amounts relating to such derivative financial instruments expected to be reclassified from accumulated other comprehensive loss to net income in the next 12 months; a statement in Note 8 to those Condensed Consolidated Financial Statements regarding the payment of dividends in the remainder of fiscal 2017; statements in Note 9 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 Walmart's existing FCPA matters, and the liabilities, losses, expenses and costs that Walmart may incur in connection with such matters; and statements in Note 10 to those Condensed Consolidated Financial Statements regarding the expected closing date for the sale of the Suburbia apparel retail division and the anticipated benefits of the recent acquisition of Jet.com, Inc.;
|
•
|
in Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations": statements under the caption "Overview" relating to the possible impact of 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" regarding the impact of Walmart's strategic investments on long-term growth, continuing to grow through new stores and clubs and our focus on growth going forward through increasing comparable store and club sales and investments to accelerate e-commerce sales growth, Walmart's operating expenses potentially growing at a rate greater than or equal to the rate of Walmart's sales growth and Walmart's operating income potentially growing at a rate equal to or less than the rate of Walmart's net sales growth, Walmart's objective of balancing growth with returns, and Walmart continuing to provide returns to shareholders through share repurchases and dividends; a statement under the caption "Company Performance Metrics - Growth" regarding Walmart's strategic investments potentially not benefiting net sales and comparable store and club sales in the near term; statements under the caption "Results of Operations - Consolidated Results of Operations" 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 under the caption "Liquidity and Capital Resources - Liquidity - Net Cash Provided by Operating Activities
|
•
|
in Part I, Item 4 "Controls and Procedures": the statements regarding the effect of changes to systems and processes on our internal control over financial reporting; and
|
•
|
statements in Part II, Item 1 "Legal Proceedings" 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.
|
•
|
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;
|
•
|
changes in market levels of wages;
|
•
|
changes in the size of various markets, including e-commerce markets;
|
•
|
unemployment levels;
|
•
|
inflation or deflation, generally and in certain product categories;
|
•
|
transportation, energy and utility costs;
|
•
|
commodity prices, including the prices of oil and natural gas;
|
•
|
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
|
•
|
initiatives of competitors, competitors' entry into and expansion in Walmart's markets, and competitive pressures;
|
•
|
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 amounts of Walmart's cash flow during various periods;
|
•
|
the Company's need to repatriate earnings held outside of the U.S.;
|
•
|
customer traffic and average ticket in Walmart's stores and clubs and on its e-commerce websites;
|
•
|
the mix of merchandise Walmart sells;
|
•
|
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;
|
•
|
Walmart's ability to successfully integrate acquired businesses, including Jet.com, Inc.;
|
•
|
the amount of shrinkage Walmart experiences;
|
•
|
consumer acceptance of and response to Walmart's stores and clubs, e-commerce websites, mobile apps, programs and merchandise offerings, including the Walmart U.S. segment's Grocery Pickup program;
|
•
|
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;
|
•
|
Walmart's expenditures for FCPA and other compliance-related matters;
|
•
|
disruptions in Walmart's supply chain;
|
•
|
cybersecurity events affecting Walmart and related costs;
|
•
|
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;
|
•
|
unexpected changes in Walmart's objectives and plans;
|
•
|
the availability of necessary personnel to staff Walmart's stores, clubs and other facilities;
|
•
|
delays in the opening of new, expanded or relocated 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;
|
•
|
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;
|
•
|
governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere;
|
•
|
tariff rates and trade restrictions;
|
•
|
changes in currency control laws;
|
•
|
the level of public assistance payments;
|
•
|
natural disasters, public health emergencies, civil disturbances, and terrorist attacks; and
|
•
|
changes in generally accepted accounting principles in the United States.
|
Date: December 1, 2016
|
By:
|
|
/s/ C. Douglas McMillon
|
|
|
|
C. Douglas McMillon
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
Date: December 1, 2016
|
By:
|
|
/s/ M. Brett Biggs
|
|
|
|
M. Brett Biggs
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
Date: December 1, 2016
|
By:
|
|
/s/ Steven P. Whaley
|
|
|
|
Steven P. Whaley
Senior Vice President and Controller
(Principal Accounting Officer)
|
Exhibit 3.1
|
|
Restated Certificate of Incorporation of the Company, the Certificate of Amendment to the Restated Certificate of Incorporation executed August 19, 1991, and the Certificate of Amendment to the Restated Certificate of Incorporation executed July 27, 1999 are incorporated herein by reference to Exhibits 4.1, 4.2 and 4.3, respectively, to the Registration Statement on Form S-3 of the Company (File Number 333-178385) filed with the SEC on December 8, 2011.
|
|
|
|
Exhibit 3.2
|
|
Amended and Restated Bylaws of Wal-Mart Stores, Inc., effective as of June 5, 2014, are incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended April 30, 2014 as filed with the SEC on June 6, 2014.
|
|
|
|
Exhibit 10.(a)*
|
|
Share-Settled Restricted Stock Unit Notification and Terms and Conditions dated September 19, 2016, evidencing grant of Restricted Stock Units to Marc Lore, President and Chief Executive Officer, Walmart eCommerce US.
|
|
|
|
Exhibit 10.(b)*
|
|
Separation Agreement by and between Wal-Mart Stores, Inc. and Neil Ashe, dated November 29, 2016.
|
|
|
|
Exhibit 12.1*
|
|
Ratio of Earnings to Fixed Charges
|
|
|
|
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
|
|
The information incorporated by reference in Part I, Item 3 of this Quarterly Report on Form 10-Q is incorporated herein by reference to the material set forth under the sub-caption "Market Risk" in Management's Discussion and Analysis of Financial Condition and Results of Operations, which is contained in Exhibit 13 to the Company's Annual Report on Form 10-K for the year ended January 31, 2016, as filed with the SEC.
|
|
|
|
Exhibit 101.INS*
|
|
XBRL Instance Document
|
|
|
|
Exhibit 101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
Exhibit 101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
Exhibit 101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
Exhibit 101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
Exhibit 101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith as an Exhibit.
|
**
|
Furnished herewith as an Exhibit.
|
Name of Grantee:
|
Marc Lore
|
Grant Date:
|
September 19, 2016
|
Number of Restricted Stock Units:
|
3,554,093
|
5.
|
Vesting of the RSUs and Delivery of Shares
. Your RSUs will vest as follows, provided you have not incurred a Forfeiture Situation (as defined in Paragraph 6 below):
|
Percentage of RSUs Vesting
|
Vesting Dates
|
10%
|
1
st
anniversary of the Grant Date
|
1.25%
|
Per month for the 12 months between the 1
st
and 2
nd
anniversary of the Grant Date
|
1.67%
|
Per month for the 12 months between the 2
nd
and 3
rd
anniversary of the Grant Date
|
2.08%
|
Per month for the 12 months between the 3
rd
and 4
th
anniversary of the Grant Date
|
2.5%
|
Per month for the 12 months between the 4
th
and 5
th
anniversary of the Grant Date
|
8.
|
Taxes and Tax Withholding
.
|
a.
|
You are an “
accredited investor
” (within the meaning of Rule 501(a) of the Securities and Exchange Commission (the “Commission”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”)), and have a net worth, either individually or upon a joint basis with your spouse, of at least $1,000,000 (within the meaning of such terms as used in the definition of accredited investor contained in Rule 501 under the Securities Act),
or
has had an individual income in excess of $200,000 for each of the two most recent years, or a joint income with your spouse in excess of $300,000 in each of those years, and have a reasonable expectation of reaching the same income level in the current year.
|
b.
|
You are acquiring and receiving the RSUs and underlying Shares solely for investment purposes only for your own account and not directly or indirectly for the account of any other person whatsoever and not with a view to, or for sale in connection with, any distribution of the RSUs or the underlying Shares. You do not have any contract, undertaking or arrangement with any person to sell, transfer or grant a participation to any person with respect to the RSUs or the underlying Shares.
|
c.
|
You are a sophisticated investor and have such knowledge and experience in financial and business matters and investments that you are capable of evaluating the merits and risks of the investment evidenced by this Agreement, and you are able to bear the economic risk and loss of such investment.
|
d.
|
You have had access to such information, including review of the merits of an investment in the Company with tax and legal counsel and an investment advisor as you deem necessary to enable you to make an informed decision concerning the receipt of the RSUs and the underlying Shares. You have had access to the Board and the appropriate officers of the Company and the opportunity to ask questions of, and receive answers satisfactory to you from, such Board members and officers of the Company concerning the RSUs and underlying Shares and the Company generally. You have obtained all additional information requested by you to verify the accuracy of all information furnished in connection with the receipt of the RSUs and the underlying Shares.
|
e.
|
You further acknowledge that you are receiving the RSUs and underlying Shares without being furnished any offering literature or prospectus other than this Agreement. You also understand and agree that: (1) neither the RSUs nor the underlying Shares nor the offer and sale of the RSUs and underlying Shares have been registered under the Securities Act or registered or qualified under the securities or “blue sky” laws of any state in reliance upon specific exemptions from registration thereunder; (2) any Shares delivered to you pursuant to this Agreement will be “restricted securities” (as that term is defined in Rule 144 of the Commission promulgated under the Securities Act) of the Company; (3) neither the Shares nor any interest therein may be sold, offered for sale, transferred, pledged, hypothecated or otherwise disposed of except in compliance with the Securities Act and applicable state securities or “blue sky” laws; (4) that the undersigned must bear the economic risk of the undersigned’s investment in the Shares for an indefinite period of time; (5) any stock certificates, if any, representing the Shares and/or the book-entry Shares will bear the following restrictive legend: THESE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT") OR UNDER ANY APPLICABLE STATE LAW. THEY MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
|
f.
|
You understand that the Company is under no obligation, and does not intend, to effect any registration under the Securities Act at any time or to comply with any exemption under the Securities Act, including by not limited to that set forth in Section 4(1) of the Securities Act and Rule 144 promulgated under the Securities Act, which would permit the Shares to be sold by the undersigned. You also understand that sales or transfers of the RSUs and the underlying Shares are further restricted by the provisions of this Agreement and, as applicable, securities laws of other jurisdictions and the states of the United States.
|
g.
|
You understand and acknowledge that the RSUs are offered and issued in reliance on the exemption from the registration requirements of the Securities Act, provided by Section 4(a)(2) of the Securities Act, and shall be granted by the Company to you in reliance on the exemption from the shareholder approval requirements of Section 303A.08 of the New York Stock Exchange Listed Company Manual as a grant that is made as an inducement to your becoming an employee of the Company.
|
h.
|
You agree to notify the Company immediately of any change in accuracy or completeness of any representation, warranty or other information relating to you as set forth herein this Paragraph 14.L.
|
/s/ Marc Lore
|
Marc Lore
|
1.
|
Separation Date.
The parties acknowledge that the Associate’s employment with Walmart will terminate on
January 31, 2017
(the “Separation Date”). The Associate shall continue to receive his current annual base salary through the Separation Date, which will be paid through Walmart’s regular payroll. During the remainder of his employment with Walmart, the Associate shall serve as an Executive Vice President reporting to Walmart’s President and Chief Executive Officer, and shall be available on a full-time basis for consultation and advice to Walmart’s President and Chief Executive officer and other members of management on a variety of strategic and transitional matters.
|
2.
|
Separation Benefits.
|
a)
|
Separation Payments.
Subject to compliance with the terms and conditions of this Agreement, and specifically Sections 4(b)(iv), 5, 6, 7, 8, and 9, the Associate shall receive total separation payments of
$2,069,386
, less applicable withholding (the “Transition Payments”). As soon as practical after the Separation Date, but not to exceed 45 days after the Separation Date, the Associate will receive the first installment of the Transition Payments in a lump-sum payment in the amount of
$517,347
, less applicable withholding. Thereafter, the Associate shall receive the remaining
$1,552,039
of the Transition Payments, less applicable withholding, over an eighteen (18) month period in equal bi-weekly installments beginning at the end of the regularly scheduled pay period six (6) months after the Separation Date. Such amounts are inclusive of all amounts to which the Associate would have been entitled under the Post-Termination Agreement and Protective Covenants Agreement entered into as of January 16, 2012 between the Associate and Walmart (the “Non-Competition Agreement”).
|
b)
|
Unvested Equity.
Walmart and the Associate acknowledge that the Associate currently has unvested restricted stock grants that have been granted to the Associate under the
Wal-Mart Stores, Inc. Stock Incentive Plan of 2015
and predecessor equity compensation plans of Walmart (collectively, the “Plan”), which such equity awards are subject to the award notices relating to such grants (the “Awards”). Subject to the approval of the appropriate committee of Walmart’s Board of Directors, and subject to compliance with the terms and conditions of this Agreement, and specifically Sections 4(b)(iv), 5, 6, 7, 8, and 9, as consideration for the releases set forth in Section 4 of this Agreement and for other good and sufficient consideration, the vesting of certain shares of unvested restricted stock held by the Associate shall be accelerated to the Separation Date, as set forth in
Exhibit A
. All other terms of such restricted stock awards, including any deferral elections with respect to such awards, as set forth in the Plan and the Awards, shall continue in full force and effect. All other stock options, restricted stock awards, performance shares, and any other equity awards issued to the Associate under Walmart’s equity compensation plans that are not vested as of the Separation Date shall be forfeited and cancelled as of the Separation Date.
|
3.
|
Other Benefits.
After the Separation Date, Walmart will provide the Associate certain benefits in accordance with the terms and conditions of the Walmart plan or program pursuant to which such benefits were issued:
|
a)
|
COBRA.
At the Associate’s election and at the Associate’s expense, the Associate may choose to continue the Associate’s group medical and dental coverage for up to eighteen (18) months from the Separation Date under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).
|
b)
|
Incentive Payments and Performance Shares.
The Associate must remain employed with Walmart through January 31, 2017 in order to be eligible for a cash incentive payment and performance share payout for the fiscal year ending January 31, 2017. The Associate must also remain employed through January 31, 2017 in order to be eligible for a payout of the portion of the Associate’s special performance-based restricted stock award with a performance period ending January 31, 2017, assuming the performance goal established by the Compensation, Nominating and Governance Committee of Walmart’s Board of Directors applicable to such award is satisfied. The Associate will not be eligible for a cash incentive payment or a performance share payout for the fiscal year ending January 31, 2018 or any subsequent fiscal year.
|
c)
|
Other Payments and Benefits.
The Associate is not entitled to any other payments or benefits not provided for in this Agreement, unless the payment or benefit is provided for through the Associate’s participation in an established Walmart-sponsored plan or program. In addition, unless otherwise provided for in the plan, the Associate’s participation in all Walmart-sponsored benefit plans or programs will end on the Separation Date.
|
d)
|
Section 409A.
Notwithstanding anything contained herein or in any Walmart-sponsored plan to the contrary, the Associate acknowledges that any and all distributions of benefits under any Walmart deferred compensation plan which is subject to Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), shall not commence until six (6) months after the Associates incurs a “separation from service” as defined in Section 409A.
|
4.
|
Releases.
|
a)
|
Release and Waiver of Claims.
In exchange for, and in consideration of, the payments, benefits, and other commitments described above, the Associate releases Walmart from any and all claims of any kind, whether known or unknown, that arose up to and including the date the Associate signs this Agreement (including claims arising out of or relating to the termination of the Associate’s employment with Walmart). For illustration purposes and not as a limitation, the claims the Associate is releasing include any claims for damages, costs, attorneys’ fees, expenses, compensation or any other monetary recovery. Further, the Associate specifically waives and releases all claims he may have that arose up to and including the date the Associate signs this Agreement (including claims arising out of or relating to the termination of the Associate’s employment with Walmart) regarding veteran’s status; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Equal Pay Act; the Americans With Disabilities Act of 1990, as amended; the Rehabilitation Act of 1973, as amended; the Age Discrimination in Employment Act, as amended (“ADEA”); the Family and Medical Leave Act (“FMLA”), as amended; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Genetic Information Non-Discrimination Act; the Immigration Reform and Control Act, as amended; the Workers Adjustment and Retraining Notification Act (“WARN”), as amended; any applicable state WARN-like statute; the Occupational Safety and Health Act, as amended; the Sarbanes-Oxley Act of 2002; the Consolidated Omnibus Budget Reconciliation Act (COBRA); the Employee Retirement Income Security Act of 1974, as amended; the National Labor Relations Act; the Fair Labor Standards Act (FLSA); the Massachusetts Overtime Law; the Massachusetts Payment of Wages Law; the Massachusetts Fair Employment Practices Act; the New Jersey Conscientious Employee Protection Act, N.J.S.A. 34:19-1, et seq.; the New Jersey Law Against Discrimination; the West Virginia Human Rights Act, W. Va. CSR §77-6-3; the California Fair Employment and Housing Act; the California Family Rights Act; the California Labor Code; the Wage Orders of the California Industrial Welfare Commission; the California Unfair Business Practices law (Cal. Bus. and Prof. Code Sec. 17200, et seq.); California WARN (CA Labor Code Section 1400-1408); and all state or local statutes, ordinances, or regulations regarding anti-discrimination employment laws, as well as all matters arising under federal, state, or local law
|
b)
|
Release of Age Discrimination Claims.
With respect to the Associate’s release and waiver of claims under the ADEA as described in Section 4(a) above, the Associate agrees and acknowledges the following:
|
(i)
|
The Associate has reviewed this Agreement carefully and understands its terms and conditions. The Associate has been advised, and by this Agreement is again advised, to consult with an attorney of the Associate’s choice prior to entering into this Agreement.
|
(ii)
|
The Associate shall have twenty-one (21) days from receipt of this Agreement to consider and execute the Agreement by fully executing it below and returning it to Walmart; otherwise, the terms and provisions of this Agreement become null and void. The Associate agrees that any modifications, material or otherwise, made to this Agreement do not restart or affect in any manner the original review period.
|
(iii)
|
The Associate will have a period of seven (7) calendar days after Associate signs the Agreement during which to revoke the Agreement. The Associate must provide written notice of revocation during the seven (7) day period to Jackie Telfair, Senior Vice President, Global Compensation and Organizational Effectiveness. Any revocation within this period must expressly state, “I hereby revoke my Agreement.” The written revocation must be delivered to Jackie Telfair, Senior Vice President, Global Compensation and Organizational Effectiveness, or to her successor, and be postmarked within seven (7) calendar days of the Associate’s execution of this Agreement. This Agreement will not become effective or enforceable until the revocation period has expired. If the last day of the revocation period is a Saturday, Sunday, or legal holiday, then the revocation period will not expire until the next following day that is not a Saturday, Sunday, or legal holiday.
|
(iv)
|
The Associate knows that he is waiving his rights under the ADEA and does so voluntarily. The Associate realizes the waiver does not include any ADEA rights which may arise after the Associate signs this Agreement. By signing this Agreement, the Associate acknowledges that he is receiving consideration that the Associate would not otherwise be entitled to receive.
|
(v)
|
No payments or acceleration of equity pursuant to Section 2 of this Agreement shall occur or be effective until after the Associate has executed and delivered this Agreement to Walmart, the above-mentioned seven-day revocation period has expired, and the Associate has separated from employment as set forth in Section 1 of this Agreement.
|
c)
|
Limitation of Release.
Nothing in this Agreement releases claims for workers’ compensation or unemployment benefits. Nothing in this Agreement prevents Associate from pursuing administrative claims with or otherwise assisting government agencies, including engaging in or participating in an investigation or proceeding conducted by, or providing information to, the EEOC, NLRB, the Securities and Exchange Commission, or any federal, state or local agency charged with the enforcement of employment or other laws. This release and waiver of claims will not apply to rights or claims that may arise after the effective date of this Agreement. This Agreement is not intended to release and does not release or include claims that the law states cannot be waived by private agreement, nor does it prevent the Associate from receiving any whistleblower or similar award. Nothing in this subparagraph or in this Agreement is intended to limit or restrict any rights the Associate may have to enforce this Agreement or challenge the Agreement’s validity under the ADEA, or any other right that cannot, by express and unequivocal terms of law, be limited, waived, or extinguished by settlement. Further, nothing in this Agreement is intended to waive the Associate’s right to vested benefits under any Walmart-sponsored benefit plan or program.
|
d)
|
Agreement not to File Suits.
By signing this Agreement, Associate agrees not to file a lawsuit to assert any claims released under this Section 4. Associate also agrees that if Associate breaches this provision, Associate will be liable for all costs and attorneys’ fees incurred by any person against whom claims were released under Section 4(a) resulting from such action and shall pay all expenses incurred by such person in defending any proceeding pursuant to this Section 4(d) as they are incurred
|
5.
|
Confidential Information.
The Associate agrees that he will not at any time, whether prior to or subsequent to the Separation Date, directly or indirectly use any Confidential Information (as defined below) obtained during the course of his employment with Walmart or otherwise, except as previously authorized by Walmart in writing. Additionally, the Associate shall not at any time, whether prior to or subsequent to the Separation Date, disclose any Confidential Information obtained during the course of his employment with Walmart or otherwise, unless such disclosure is (a) previously authorized by Walmart in writing, (b) required by applicable legal proceeding, or (c) as permitted by Section 18(a) of this Agreement. In addition, the Associate shall not disclose any information for which Walmart holds a legally recognized privilege against disclosure or discovery (“Privileged Information”), or take any other action that would cause such privilege to be waived by Walmart. With respect to (b) above only, in the event that the Associate is required by applicable legal proceeding (including, without limitation, by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, or other legal proceeding) to disclose any Confidential Information or Privileged Information, the Associate shall provide Walmart with prompt prior written notice of such requirement. The Associate shall also, to the extent legally permissible, provide Walmart as promptly as practicable with a description of the information that may be required to be disclosed (and, if applicable, the text of the disclosure itself) and cooperate with Walmart (at Walmart’s expense) to the extent Walmart may seek to limit such disclosure, including, if requested, by taking all reasonable steps to resist or narrow any such disclosure or to obtain a protective order or other remedy with respect thereto. If a protective order or other remedy is not obtained and disclosure is legally required, the Associate shall (a) disclose such information only to the extent required in the written opinion of the Associate’s legal counsel, and (b) give advance notice to Walmart of the information to be actually disclosed as far in advance as is reasonably possible. In any such event, the Associate and his legal counsel shall use reasonable commercial efforts to ensure that all Confidential Information or Privileged Information that is so disclosed is accorded confidential treatment by the recipient thereof.
|
6.
|
Cooperation.
|
a)
|
Cooperation with Walmart.
The Associate may from time to time after the Separation Date be called upon to testify or provide information to Walmart in connection with employment-related and other legal proceedings against Walmart. The Associate will provide reasonable assistance to, and will cooperate with, Walmart in connection with any litigation, arbitration, investigations, or judicial or non-judicial administrative proceedings that may exist or may subsequently arise regarding events
|
b)
|
Cooperation with Governmental Authorities.
From time to time, Walmart may be under investigation by various governmental authorities. Walmart encourages the Associate to cooperate with all such investigations. If such assistance is requested by a governmental authority, Walmart shall reimburse the Associate for all reasonable costs and expenses.
|
c)
|
Board Membership.
Effective as of the Separation Date, the Associate hereby resigns from any boards of directors, boards of managers, and similar governing boards of any Walmart entities of which the Associate may be a member, resigns as an officer of any and all Walmart entities, resigns as Walmart’s representative on any external trade, industry or similar associations, and agrees to sign any documents acknowledging such resignations, as may be requested by Walmart.
|
7.
|
Non-disclosure and Non-disparagement
. The Associate agrees, acknowledges and confirms that he has complied with and will continue to comply with the most recent Non-Disclosure and Restricted Use Agreement between the Associate and Walmart (the “Non-Disclosure Agreement”). The Associate further agrees, promises and covenants that he shall not directly or indirectly at any time, whether prior to or subsequent to the Separation Date: a) discuss or disclose the existence or terms of this Agreement with anyone, except as provided below; or b) make disparaging comments regarding Walmart, its business strategies and operations, and any of Walmart’s officers, directors, associates, and shareholders, except that nothing herein shall prevent the Associate from providing truthful information and testimony to government authorities, nor shall in prevent the Associate from providing truthful information and testimony in any legal proceedings or as otherwise provided by law. The Associate agrees and understands that the terms of this Agreement are CONFIDENTIAL including the existence, fact and terms of this Agreement and the fact that money was paid to the Associate. Except as provided by Section 18(a) below, the Associate warrants to have not disclosed the above to anyone prior to signing and will not disclose to anyone the existence, fact and terms of this Agreement, except for the Associate’s spouse, attorney, and financial advisor, all of whom shall be informed of the confidential nature of this Agreement and agree to abide by its terms.
|
8.
|
Statement of Ethics and Compliance with Laws.
The Associate has read and understands the provisions of Walmart’s Statement of Ethics and agrees to abide by the provisions thereof to the extent applicable to former Walmart associates. The Associate further acknowledges that the Associate has complied with the applicable Statement of Ethics, as well as with all applicable laws, rules and regulations, during the Associate’s employment with Walmart. The discovery of a failure to abide by the Statement of Ethics and/or comply with all applicable laws, rules or regulations, whenever discovered, shall, in addition to any other remedies under this Agreement, entitle Walmart to suspend and recoup any payments paid or due under this Agreement or any other agreements between the parties.
|
9.
|
Covenant not to Compete.
The Associate agrees, promises, and covenants that:
|
a)
|
For a period of two (2) years from the Separation Date, the Associate will not directly or indirectly:
|
(i)
|
own, manage, operate, finance, join, control, advise, consult, render services to, have a current or future interest in, or participate in the ownership, management, operation, financing, or control of, or be employed by or connected in any manner with, any Competing Business as defined below in Section 9.b(i), and/or any Global Retail Business as defined below in Section 9.b(ii); and/or
|
(ii)
|
participate in any other activity that risks the use or disclosure of confidential Walmart information either overtly by the Associate or inevitably through the performance of such activity by the Associate; and/or
|
(iii)
|
solicit for employment, hire or offer employment to, or otherwise aid or assist any person or entity other than Walmart in soliciting for employment, hiring, or offering employment to, any Officer, Officer Equivalent or Management Associate of Walmart, or any of its subsidiaries or affiliates.
|
(i)
|
the term “Competing Business” shall include any general or specialty retail, grocery, wholesale membership club, or merchandising business, inclusive of its respective parent companies, subsidiaries and/or affiliates that: (a) sells goods or merchandise at retail to consumers and/or businesses (whether through physical locations, via the internet or combined) or has plans to sell goods or merchandise at retail to consumers and/or businesses (whether through physical locations, via the internet or combined) within twelve (12) months following Associate’s last day of employment with Walmart in the United States; and (b) has gross annual consolidated sales volume or revenues attributable to its retail operations (whether through physical locations, via the internet or combined) equal to or in excess of U.S.D. $5 billion.
|
(ii)
|
the term “Global Retail Business” shall include any general or specialty retail, grocery, wholesale membership club, or merchandising business, inclusive of its respective parent companies, subsidiaries and/or affiliates, that: (a) in any country or countries outside of the United States in which Walmart conducts business or intends to conduct business in the twelve (12) months following Associate’s last day of employment with Walmart, sells goods or merchandise at retail to consumers and/or businesses (whether through physical locations, via the internet or combined); and (b) has gross annual consolidated sales volume or revenues attributable to its retail operations (whether through physical locations, via the internet or combined) equal to or in excess of U.S.D. $5 billion in any country pursuant to b(ii)(a) or in the aggregate equal to or in excess of U.S.D. $5 billion in any countries taken together pursuant to b(ii)(a) when no business in any one country has annual consolidated sales volume or revenues attributable to its retail operations equal to or in excess of U.S.D. $5 billion.
|
c)
|
For purposes of this Agreement, the term “Management Associate” shall mean any domestic or international associate holding the title of “manager” or above.
|
d)
|
For purposes of this Agreement, the term “Officer” shall mean any domestic Walmart associate who holds a title of Vice President or above.
|
e)
|
For purposes of this Agreement, the term “Officer Equivalent” shall mean any non-U.S. Walmart associate who Walmart views as holding a position equivalent to an officer position, such as managers and directors in international markets, irrespective of whether such managers and directors are on assignment in the U.S.
|
f)
|
Ownership of an investment of less than the greater of $25,000 or 1% of any class of equity or debt security of a Competing Business and/or a Global Retail Business will not be deemed ownership or participation in ownership of a Competing Business and/or a Global Retail Business for purposes of this Agreement.
|
10.
|
Affirmation.
Other than may be provided for in any class or collective action that was pending against Walmart as of the date of this Agreement, the Associate states and acknowledges that he has been paid and/or received all leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits are due him, except as provided for in this Agreement. The Associate also states and confirms that he has reported to Walmart any and all work-related injuries incurred by him during his employment by Walmart. Further, Associate acknowledges that he has been properly provided any leave of absence because of the Associate’s or the Associate’s family member’s health condition and has not been subjected to any improper treatment, conduct, or actions due to a request for or taking such leave. Additionally, Associate specifically acknowledges that he has not made any request for leave pursuant to FMLA which was not granted; and, Walmart has not interfered in any way with Associate’s efforts to take leave pursuant to FMLA.
|
11.
|
Insider Trading Policy.
The Associate acknowledges that he is currently subject to Walmart’s Insider Trading Policy and subject to certain restrictions regarding the timing of his trades in Walmart securities, as set forth in the Insider Trading Policy (the “trading windows”). The Associate further acknowledges that the trading window is scheduled to be “closed” on the Separation Date, and is not scheduled to open
|
12.
|
Advice of Counsel.
The Associate has been advised, and by this Agreement is again advised, to consider this Agreement carefully and to review it with legal counsel of the Associate’s choice. The Associate understands the provisions of this Agreement and has been given the opportunity to seek independent legal advice before signing this Agreement.
|
13.
|
Non-Admission.
The parties acknowledge that the terms and execution of this Agreement are the result of negotiation and compromise, that this Agreement is entered into in good faith, and that this Agreement shall never be considered at any time or for any purpose as an admission of liability by Walmart or that Walmart acted wrongfully with respect to the Associate, or any other person, or that the Associate has any rights or claims whatsoever against Walmart arising out of or from the Associate’s employment. Walmart specifically denies any liability to the Associate on the part of itself, its employees, its agents, and all other persons and entities released herein.
|
14.
|
Return of Company Property.
As soon as practical after the Separation Date, the Associate will return all Walmart-owned property including but not limited to computers, hand-held computing devices (e.g., Blackberry, iPhone, iPad, etc.), cell phones, videoconferencing equipment (e.g., Tandberg), documents, files, computer files, keys, ID’s, credit cards, Associate Discount Card, and spouse card, if any.
|
15.
|
Taxes.
The Associate acknowledges and agrees that the Associate is responsible for paying all taxes and related penalties, and interest on the Associate’s income. Walmart will withhold taxes, including from amounts or benefits payable under this Agreement, and report them to tax authorities, as it determines it is required to do. Although the payments under this Agreement are intended to comply with the requirements of Section 409A and Walmart intends to administer this Agreement so that it will comply with Section 409A, Walmart has not warranted to the Associate that taxes and penalties will not be imposed under Section 409A or any other provision of federal, state, local, or non-United States law. The Associate will indemnify Walmart and hold it harmless with respect to all such taxes, penalties, and interest (other than FICA taxes imposed on Walmart with respect to the Associate’s income).
|
16.
|
Remedies for Breach.
The parties shall each be entitled to pursue all legal and equitable rights and remedies to secure performance of their respective obligations and duties under this Agreement, and enforcement of one or more of these rights and remedies will not preclude the parties from pursuing any other rights or remedies. Associate acknowledges that a breach of the provisions of Sections 5 through 9 above could result in substantial and irreparable damage to Walmart’s business, and that the restrictions contained in Sections 5 through 9 are a reasonable attempt by Walmart to safeguard its rights and protect its confidential information. Associate expressly agrees that upon a breach or a threatened breach of the provisions of Sections 5 through 9, Walmart shall be entitled to injunctive relief to restrain such violation, and Associate hereby expressly consents to the entry of such temporary, preliminary, and/or permanent injunctive relief, as may be necessary to enjoin the violation or threatened violation of Sections 5 through 9. With respect to any breach of this Agreement by the Associate, the Associate agrees to indemnify and hold Walmart harmless from and against any and all loss, cost, damage, or expense, including, but not limited to, attorneys’ fees incurred by Walmart and to return immediately to Walmart all of the monies previously paid to the Associate by Walmart under this Agreement; provided, however, that such repayment shall not constitute a waiver by Walmart of any other remedies available under this Agreement or by law, including injunctive relief. In addition to any other remedies at law or at equity, if at any time the Associate fails to comply with the terms, provisions or conditions of this Agreement, the Associate acknowledges that Walmart is not obligated to make any further Transition Payments to the Associate.
|
17.
|
Recoupment.
Notwithstanding any other provision of this Agreement to the contrary, Associate agrees and acknowledges that all amounts and benefits provided under this Agreement and all compensation paid during the course of Associate’s employment with Walmart will be subject to the recoupment policies adopted by the Company from time to time, including any policy adopted or amended after the date of this Agreement, and including any policy adopted pursuant to the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act or other law or the listing requirements of any national securities exchange on which the common stock of Walmart may be listed.
|
18.
|
Miscellaneous.
|
a)
|
Protected Rights.
Nothing in this Agreement is intended to prohibit the Associate from engaging in any legally protected communication or action. Nothing contained in this Agreement shall restrict, limit or otherwise modify Associate’s rights under Walmart’s Open Door Policy. Nothing contained in this Agreement is intended to discourage the Associate from reporting any activity or information under the Global Statement of Ethics or to a governmental agency as permitted by any “whistleblower” laws. Associate shall not be held liable under this Agreement or any other agreement or any federal or state trade secret law for making any confidential disclosure of a Walmart trade secret or other confidential information to a government official or an attorney for purposes of reporting or investigating a suspected violation of law or regulation, or in a court filing under seal, nor shall Associate be required to obtain approval or notify Walmart prior to making any such disclosure.
|
b)
|
Entire Agreement.
This Agreement, along with the Non-Disclosure Agreement, contains the entire agreement and understanding of the parties, and no prior statements by either party will be binding unless contained in this Agreement or incorporated by reference in this Agreement or the Non-Disclosure Agreement. The parties agree that no prior statements by either party will be binding unless contained in this Agreement or the Non-Disclosure Agreement. In addition, to be binding on the parties, any handwritten changes to this Agreement must be initialed and dated by the Associate and the authorized representative of Walmart whose signature appears below. This Agreement supercedes and specifically terminates all prior agreements between the Associate and Walmart with respect to the subject matter hereof, including the Non-Competition Agreement, including but not limited to the fact that no Transition Payments (as described in the Non-Competition Agreement) will be due and owing by Walmart to the Associate under or pursuant to the Non-Competition Agreement.
|
c)
|
Conflict with Exhibits.
If the terms and provisions of this Agreement conflict with the terms and provisions of any exhibit to this Agreement, the terms and provisions of this Agreement will govern.
|
d)
|
Severability.
If any portion or provision of this Agreement is found to be unenforceable or invalid, the parties agree that the remaining portions will remain in full force and effect. The parties will negotiate in good faith to give such unenforceable or invalid provisions the effect the parties intended.
|
e)
|
Section Titles.
Section titles are informational only and are not to be considered in construing this Agreement.
|
f)
|
Successors and Assigns.
The parties acknowledge that this Agreement will be binding on their respective successors, assigns, and heirs.
|
g)
|
Governing Law and Dispute Resolution.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to Delaware law concerning the conflicts of law. The Parties further agree that any action relating to the interpretation, validity, or enforcement of this Agreement shall be brought in the of the courts of the State of Delaware, County of New Castle, or in the United States District Court of Delaware, and the parties hereby expressly consent to the jurisdiction of such courts and agree that venue is proper in those courts. The parties do hereby irrevocably: (a) submit themselves to the personal jurisdiction of such courts; (b) agree to service of such courts’ process upon them with respect to any such proceeding; (c) waive any objection to venue laid therein; and (d) consent to service of process by registered mail, return receipt requested. Associate further agrees that in any claim or action involving the execution, interpretation, validity, or enforcement of this Agreement, Associate will seek satisfaction exclusively from the assets of Walmart and will hold harmless all of Walmart’s individual directors, officers, employees, and representatives.
|
NEIL M. ASHE
|
|
WAL-MART STORES, INC.
|
|
|
|
/s/Neil M. Ashe
|
|
By:
/s/Jacquelin L. Telfair
|
|
|
Name:
Jacquelin L. Telfair
|
|
|
Title:
SVP, Global Compensation and Organizational Effectiveness
|
Grant Date
|
Number of Shares to be Accelerated
|
Original Vesting Date
|
January 26, 2015
|
13,255
|
January 26, 2018
|
January 25, 2016
|
9,347
|
January 25, 2019
|
|
Nine Months Ended
|
|
Fiscal Years Ended
|
||||||||||||||||||||||||
|
October 31,
|
|
January 31,
|
||||||||||||||||||||||||
(Amounts in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||
Income from continuing operations before income taxes
|
$
|
14,847
|
|
|
$
|
15,544
|
|
|
$
|
21,638
|
|
|
$
|
24,799
|
|
|
$
|
24,656
|
|
|
$
|
25,662
|
|
|
$
|
24,332
|
|
Capitalized interest
|
(27
|
)
|
|
(28
|
)
|
|
(39
|
)
|
|
(59
|
)
|
|
(78
|
)
|
|
(74
|
)
|
|
(60
|
)
|
|||||||
Consolidated net income attributable to the noncontrolling interest
|
(421
|
)
|
|
(212
|
)
|
|
(386
|
)
|
|
(736
|
)
|
|
(673
|
)
|
|
(757
|
)
|
|
(688
|
)
|
|||||||
Adjusted income before income taxes
|
14,399
|
|
|
15,304
|
|
|
21,213
|
|
|
24,004
|
|
|
23,905
|
|
|
24,831
|
|
|
23,584
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest
(1)
|
1,809
|
|
|
2,011
|
|
|
2,587
|
|
|
2,520
|
|
|
2,413
|
|
|
2,325
|
|
|
2,382
|
|
|||||||
Interest component of rent
|
632
|
|
|
606
|
|
|
836
|
|
|
916
|
|
|
933
|
|
|
859
|
|
|
790
|
|
|||||||
Total fixed charges
|
2,441
|
|
|
2,617
|
|
|
3,423
|
|
|
3,436
|
|
|
3,346
|
|
|
3,184
|
|
|
3,172
|
|
|||||||
Income before income taxes and fixed charges
|
$
|
16,840
|
|
|
$
|
17,921
|
|
|
$
|
24,636
|
|
|
$
|
27,440
|
|
|
$
|
27,251
|
|
|
$
|
28,015
|
|
|
$
|
26,756
|
|
Ratio of earnings to fixed charges
|
6.9
|
|
|
6.8
|
|
|
7.2
|
|
|
8.0
|
|
|
8.1
|
|
|
8.8
|
|
|
8.4
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Wal-Mart Stores, Inc. (the "registrant");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluations; and
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the Audit Committee of registrant's Board of Directors:
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: December 1, 2016
|
/s/ C. Douglas McMillon
|
|
C. Douglas McMillon
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Wal-Mart Stores, Inc. (the "registrant");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluations; and
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the Audit Committee of registrant's Board of Directors:
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: December 1, 2016
|
/s/ M. Brett Biggs
|
|
M. Brett Biggs
Executive Vice President and Chief Financial Officer
|
/s/ C. Douglas McMillon
|
C. Douglas McMillon
President and Chief Executive Officer
|
/s/ M. Brett Biggs
|
M. Brett Biggs
Executive Vice President and Chief Financial Officer
|