item 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements schedules financial statements listed index consolidated financial statements schedules appears page 18 incorporated reference herein filed part form 10k 3 exhibits following documents filed exhibits form 10k 3a restated certificate incorporation company incorporated herein reference annual report form 10k company year ended january 31 1989 certificate amendment restated certificate incorporation incorporated herein reference registration statement form s8 file number 3343315 3b bylaws company amended june 3 1993 incorporated herein reference exhibit 3b companys annual report form 10k year ended january 31 1994 4a form indenture dated june 1 1985 company boatmens trust company formerly centerre trust company st louis trustee incorporated herein reference exhibit 4c registration statement form s3 file number 297917 4b form indenture dated august 1 1985 company boatmens trust company formerly centerre trust company st louis trustee incorporated herein reference exhibit 4c registration statement form s3 file number 299162 4c form indenture dated august 15 1985 company bankers trust company trustee incorporated herein reference exhibit 4b registration statement form s3 file number 299485 4d form amended restated indenture mortgage deed trust assignment rents security agreement dated december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 4e form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4f indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4g first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 10a form individual deferred compensation agreements incorporated herein reference annual report form 10k company amended year ended january 31 1986 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1986 amendment walmart stores inc stock option plan 1984 incorporated herein reference annual report form 10k company year ended january 31 1987 10d 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference annual report form 10k company year ended january 31 1992 10e 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference annual report form 10k company year ended january 31 1993 10f walmart stores inc stock option plan 1994 incorporated herein reference exhibit 4c registration statement form s8 file number 335325 10g exchange agreement walmart stores inc walton enterprises inc dated may 23 1990 incorporated herein reference current report form 8k dated june 14 1990 10h written description consulting agreement walmart stores inc jack c shewmaker incorporated herein reference description contained third paragraph caption compensation directors companys definitive proxy statement filed connection annual meeting shareholders held june 2 1995 10i walmart stores inc directors deferred compensation plan incorporated herein reference exhibit 4d registration statement form s8 file number 3355178 13 information incorporated reference items 5 6 7 8 annual report form 10k annual report shareholders year ended january 31 1995 21 list companys subsidiaries 23 consent independent auditors 27 financial data schedule filed herewith exhibit management contract compensatory plan arrangement b reports form 8k last quarter fiscal year ended january 31 1995 company filed two reports form 8k securities exchange commission described 1 form 8k dated november 11 1994 filed commission november 14 1994 form 8k filed purpose filing certain documents exhibits item 7 form 8k connection incorporation reference companys registration statement form s3 file 3355725 documents related closing november 10 1994 issuance certain pass certificates described prospectus supplement dated november 3 1994 2 form 8k dated december 28 1994 filed commission december 28 1994 form 8k filed purpose filing certain documents exhibits item 7 form 8k connection incorporation reference companys registration statement form s3 file 3355725 documents related closing december 22 1994 issuance certain pass certificates described prospectus supplement dated december 15 1994 index consolidated financial statements schedules annual report shareholders page covered report independent auditors consolidated statements income three years period ended january 31 1995 17 consolidated balance sheets january 31 1995 1994 18 consolidated statements shareholders equity three years period ended january 31 1995 19 consolidated statements cash flows three years period ended january 31 1995 20 notes consolidated financial statements except note 8 2125 covered report independent auditors note 8 quarterly financial data unaudited 25 schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date april 21 1995 walmart stores inc bysdavid glass david glass president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated date april 21 1995 ss robson walton robson walton chairman board date april 21 1995 sdavid glass david glass president chief executive officer director date april 21 1995 sdonald g soderquist donald g soderquist vice chairman chief operating officer director date april 21 1995 spaul r carter paul r carter executive vice president chief financial officer director date april 21 1995 sjames walker jr james walker jr senior vice president controller principal accounting officer date april 21 1995 sdavid r banks david r banks director date april 21 1995 john cooper jr director date april 21 1995 robert h dedman director date april 21 1995 sfrederick humphries frederick humphries director date april 21 1995 sf kenneth iverson f kenneth iverson director date april 21 1995 selizabeth sanders elizabeth sanders director date april 21 1995 sjack shewmaker jack shewmaker director date april 21 1995 sjohn walton john walton directoritem 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 19 incorporated reference herein filed part form 10k 3 exhibits following documents filed exhibits form 10k 3a restated certificate incorporation company incorporated herein reference exhibit 3a annual report form 10k company year ended january 31 1989 certificate amendment restated certificate incorporation incorporated herein reference registration statement form s8 file number 3343315 3b bylaws company amended june 3 1993 incorporated herein reference exhibit 3b companys annual report form 10k year ended january 31 1994 4a form indenture dated june 1 1985 company boatmens trust company formerly centerre trust company st louis trustee incorporated herein reference exhibit 4c registration statement form s3 file number 297917 4b form indenture dated august 1 1985 company boatmens trust company formerly centerre trust company st louis trustee incorporated herein reference exhibit 4c registration statement form s3 file number 299162 4c form amended restated indenture mortgage deed trust assignment rents security agreement dated december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 10a form individual deferred compensation agreements incorporated herein reference exhibit 10b annual report form 10k company amended year ended january 31 1986 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1986 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1987 10d 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1992 10e 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1993 10f walmart stores inc stock option plan 1994 incorporated herein reference exhibit 4c registration statement form s8 file number 335325 10g written description consulting agreement walmart stores inc jack c shewmaker incorporated herein reference description contained second paragraph caption compensation directors page 7 companys definitive proxy statement filed connection annual meeting shareholders held june 7 1996 10h walmart stores inc directors deferred compensation plan incorporated herein reference exhibit 4d registration statement form s8 file number 3355178 10i walmart stores inc officer deferred compensation plan 13 information incorporated reference items 2 5 6 7 8 annual report form 10k annual report shareholders year ended january 31 1996 21 list companys subsidiaries 23 consent independent auditors 27 financial data schedule filed herewith exhibit management contract compensatory plan arrangement b reports form 8k company file report form 8k last quarter fiscal year ended january 31 1996 index consolidated financial statements annual report shareholders page covered report independent auditors consolidated statements income three years period ended january 31 1996 23 consolidated balance sheets january 31 1996 1995 24 consolidated statements shareholders equity three years period ended january 31 1996 25 consolidated statements cash flows three years period ended january 31 1996 26 notes consolidated financial statements except note 8 2731 covered report independent auditors note 8 quarterly financial data unaudited 31 schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date april 22 1996 bysdavid glass david glass president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated date april 22 1996 robson walton chairman board date april 22 1996 sdavid glass david glass president chief executive officer director date april 22 1996 sdonald g soderquist donald g soderquist vice chairman chief operating officer director date april 22 1996 spaul r carter paul r carter executive vice president walmart realty company director date april 22 1996 sjohn b menzer john b menzer executive vice president chief financial officer principal financial officer date april 22 1996 sjames walker jr james walker jr senior vice president controller principal accounting officer date april 22 1996 sjohn cooper jr john cooper jr director date april 22 1996 robert h dedman director date april 22 1996 sfrederick humphries frederick humphries director date april 22 1996 sf kenneth iverson f kenneth iverson director date april 22 1996 e stanley kroenke director date april 22 1996 selizabeth sanders elizabeth sanders director date april 22 1996 sjack c shewmaker jack c shewmaker director date april 22 1996 paula stern director date april 22 1996 john walton directoritem 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 18 incorporated reference herein filed part form 10k 3 exhibits following documents filed exhibits form 10k 3a restated certificate incorporation company incorporated herein reference exhibit 3a annual report form 10k company year ended january 31 1989 certificate amendment restated certificate incorporation incorporated herein reference registration statement form s8 file number 3343315 3b bylaws company amended june 3 1993 incorporated herein reference exhibit 3b companys annual report form 10k year ended january 31 1994 4a form indenture dated june 1 1985 company boatmens trust company formerly centerre trust company st louis trustee incorporated herein reference exhibit 4c registration statement form s3 file number 297917 4b form indenture dated august 1 1985 company boatmens trust company formerly centerre trust company st louis trustee incorporated herein reference exhibit 4c registration statement form s3 file number 299162 4c form amended restated indenture mortgage deed trust assignment rents security agreement dated december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 10a form individual deferred compensation agreements incorporated herein reference exhibit 10b annual report form 10k company amended year ended january 31 1986 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1986 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1987 10d 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1992 10e 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1993 10f walmart stores inc stock option plan 1994 incorporated herein reference exhibit 4c registration statement form s8 file number 3355325 10g written description consulting agreement walmart stores inc jack c shewmaker incorporated herein reference description contained third paragraph caption compensation directors page 8 companys definitive proxy statement filed connection annual meeting shareholders held june 6 1997 10h walmart stores inc director compensation plan incorporated herein reference exhibit 4d registration statement form s8 file number 33324259 10i walmart stores inc officer deferred compensation plan 10j walmart stores inc restricted stock plan 13 information incorporated reference items 2 5 6 7 8 annual report form 10k annual report shareholders year ended january 31 1997 21 list companys subsidiaries 23 consent independent auditors 27 financial data schedule filed herewith exhibit management contract compensatory plan arrangement b reports form 8k company file report form 8k last quarter fiscal year ended january 31 1997 index consolidated financial statements annual report shareholders page covered report independent auditors consolidated statements income three years period ended january 31 1997 26 consolidated balance sheets january 31 1997 1996 27 consolidated statements shareholders equity three years period ended january 31 1997 28 consolidated statements cash flows three years period ended january 31 1997 29 notes consolidated financial statements except note 8 3034 covered report independent auditors note 8 quarterly financial data unaudited 34 schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date april 21 1997 bysdavid glass david glass president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated date april 21 1997 ss robson walton robson walton chairman board date april 21 1997 sdavid glass david glass president chief executive officer director date april 21 1997 sdonald g soderquist donald g soderquist vice chairman chief operating officer director date april 21 1997 spaul r carter paul r carter executive vice president walmart realty company director date april 21 1997 sjohn b menzer john b menzer executive vice president chief financial officer principal financial officer date april 21 1997 sjames walker jr james walker jr senior vice president controller principal accounting officer date april 21 1997 sjohn cooper jr john cooper jr director date april 21 1997 sstephen friedman stephen friedman director date april 21 1997 stanley c gault director date april 21 1997 sfrederick humphries frederick humphries director date april 21 1997 se stanley kroenke e stanley kroenke director date april 21 1997 selizabeth sanders elizabeth sanders director date april 21 1997 sjack c shewmaker jack c shewmaker director date april 21 1997 spaula stern paula stern director date april 21 1997 sjohn walton john walton directoritem 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 23 annual report incorporated reference herein filed part form 10k 3 exhibits following documents filed exhibits form 10k 3a restated certificate incorporation company incorporated herein reference exhibit 3a annualreport form 10k company year ended january 31 1989 certificate amendment restated certificate incorporation incorporated herein reference registration statement form s8 file number 3343315 3b bylaws company amended june 3 1993 incorporated herein reference exhibit 3b company’s annual report form 10k year ended january 31 1994 4a form indenture dated june 1 1985 company bank new york trustee formerly boatmen’s trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 297917 4b form indenture dated august 1 1985 company bank new york trustee formerly boatmen’s trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 299162 4c form amended restated indenture mortgage deed trust assignment rents security agreement dated december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 page 20 25 form 10k 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 10a form individual deferred compensation agreements incorporated herein reference exhibit 10bfrom annual report form 10k company amended year ended january 31 1986 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1986 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1987 10d 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1992 10e 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1993 10f walmart stores inc stock option plan 1994 incorporated herein reference exhibit 4c registration statement form s8 file number 3355325 page 21 25 form 10k 10g walmart stores inc director compensation plan incorporated herein reference exhibit 4d registration statement form s8 file number 33324259 10h walmart stores inc officer deferred compensation plan incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1996 10i walmart stores inc restricted stock plan incorporated herein reference exhibit 10j annual report form 10k company year ended january 31 1997 10j 1996 amendment walmart stores inc stock option plan 1994 incorporated herein reference exhibit 10j annual report form 10k company year ended january 31 1998 10k 1997 amendment walmart stores inc stock option plan 1994 incorporated herein reference exhibit 10k annual report form 10k company year ended january 31 1998 10l walmart stores inc stock incentive plan 1998 filed herewith exhibit form 10k 10m walmart stores inc management incentive plan 1998 filed herewith exhibit form 10k 12 statement computation ratios 13 information incorporated reference items 1 2 5 6 7 8 annual report form 10k annual report shareholders year ended january 31 2000 21 list company’s subsidiaries 23 consent independent auditors 27 financial data schedule filed herewith exhibit management contract compensatory plan arrangement b reports form 8k reports form 8k filed fourth quarter fiscal 2000 page 22 25 form 10k schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto page 23 25 form 10k signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date april 15 2000 sh lee scott h lee scott president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated page 25 form 10kitem 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 25 annual report incorporated reference herein filed part form 10k december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 10a form individual deferred compensation agreements incorporated herein reference exhibit 10bfrom annual report form 10k company amended year ended january 31 1986 document located securities exchange commissions public reference room washington dc securities exchange commissions file 16991 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1992 document located securities exchange commissions public reference room washington dc securities exchange commissions file 16991 10d 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1993 document located securities exchange commissions public reference room washington dc securities exchange commissions file 16991 b reports form 8k report form 8k dated november 6 2000 respect companys november 3 2000 sale 500000000 floating rate notes due november 30 2001 report form 8k dated december 4 2000 respect companys november 30 2000 sale 500000000 floating rate notes due december 27 2001 report form 8k dated december 21 2000 respect companys december 19 2000 sale 500000000 pounds 575 notes due 2030 schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicateditem 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statement schedules financial statements listed index consolidated financial statements appears page 19 annual report incorporated reference herein filed part form 10k page 17 23 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 4g indenture dated july 5 2001 company bank one trust company na incorporated reference exhibit 41 registration statement form s3 file number 33364740 10a form individual deferred compensation agreements incorporated herein reference exhibit 10bfrom annual report form 10k company amended year ended january 31 1986 document located securities exchange commission’s public reference room washington dc securities exchange commission’s file 16991 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1992 document located securities exchange commission’s public reference room washington dc securities exchange commission’s file 16991 10d 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1993 document located securities exchange commission’s public reference room washington dc securities exchange commission’s file 16991 breports form 8k none index consolidated financial statements page 19 23 schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto page 20 23 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated page 23 23item 14 controls procedures maintain set disclosure controls procedures designed ensure information required disclosed us reports filed us securities exchange act 1934 amended exchange act recorded processed summarized reported within time periods specified sec’s rules forms within 90 days prior date report carried evaluation supervision chief executive officer chief financial officer effectiveness design operation disclosure controls procedures pursuant rule 13a14 exchange act based evaluation chief executive officer chief financial officer concluded disclosure controls procedures effective significant changes internal controls factors could significantly affect controls subsequent date evaluation corrective actions regard significant deficiencies material weaknesses taken date part iv item 15item 14 principal accountant fees services information required item incorporated reference information caption “ratification independent accountants” included proxy statement part iv item 15item 14 principal accountant fees services information required item incorporated reference information caption “ratification independent accountants” included proxy statement part iv item 15item 14 principal accountant fees services information required item incorporated reference information caption “ratification independent accountants” included proxy statement part iv item 15item 14 principal accountant fees services information required item incorporated herein reference information caption “corporate governanceaudit committee preapproval policy” caption “company proposal 2 ratification independent accountants” included proxy statement part iv item 15item 14 principal accountant fees services information required item incorporated herein reference information caption “corporate governanceaudit committee preapproval policy” caption “company proposal 2 ratification independent accountants” included proxy statement part iv item 15item 14 principal accountant fees services information required item incorporated herein reference information caption “corporate governanceaudit committee preapproval policy” caption “company proposal 2 ratification independent accountants” included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption “corporate governanceaudit committee preapproval policy” caption “company proposals proposal 2 ratification independent accountants” included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption “corporate governanceaudit committee preapproval policy” caption “company proposalsproposal 2 ratification independent accountants” included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption “corporate governanceaudit committee preapproval policy” caption “company proposalsproposal 2 ratification independent accountants” included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption corporate governanceaudit committee preapproval policy caption corporate governanceproposal 2 ratification independent accountants included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption corporate governance audit committee preapproval policy caption corporate governance proposal 2 ratification independent accountants included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption audit matters audit committee preapproval policy caption audit matters proposal 4 ratification independent accountants included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption proposal no4 ratification independent accountants subcaption thereunder audit committee preapproval policy included proxy statement part iv item 15item 14 principal accounting fees services information required item incorporated herein reference information caption proposal 3 ratification independent accountants subcaption thereunder audit committee preapproval policy included proxy statement part iv item 15item 14 principal accounting fees services information required item 14 incorporated herein reference information caption proposal 3 ratification independent accountants included proxy statement part iv item 15item 14 principal accounting fees services information required item 14 incorporated herein reference information caption proposal 3 ratification independent accountants included proxy statement part iv item 15item 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 21 annual report incorporated reference herein filed part form 10k 3 exhibits following documents filed exhibits form 10k 3a restated certificate incorporation company incorporated herein reference exhibit 3a annual report form 10k company year ended january 31 1989 certificate amendment restated certificate incorporation incorporated herein reference registration statement form s8 file number 3343315 3b bylaws company amended june 3 1993 incorporated herein reference exhibit 3b companys annual report form 10k year ended january 31 1994 4a form indenture dated june 1 1985 company bank new york trustee formerly boatmens trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 297917 4b form indenture dated august 1 1985 company bank new york trustee formerly boatmens trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 299162 4c form amended restated indenture mortgage deed trust assignment rents security agreement dated december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 10a form individual deferred compensation agreements incorporated herein reference exhibit 10bfrom annual report form 10k company amended year ended january 31 1986 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1986 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1987 10d 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1992 10e 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1993 10f walmart stores inc stock option plan 1994 incorporated herein reference exhibit 4c registration statement form s8 file number 3355325 10g written description consulting agreement walmart stores inc jack c shewmaker incorporated herein reference description contained second paragraph caption compensation directors page 6 companys definitive proxy statement filed connection annual meeting shareholders held june 5 1998 10h walmart stores inc director compensation plan incorporated herein reference exhibit 4d registration statement form s8 file number 33324259 10i walmart stores inc officer deferred compensation plan incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1996 10j walmart stores inc restricted stock plan incorporated herein reference exhibit 10j annual report form 10k company year ended january 31 1997 10k 1996 amendment walmart stores inc stock option plan 1994 filed herewith exhibit form 10 k 10l 1997 amendment walmart stores inc stock option plan 1994 filed herewith exhibit form 10 k 13 information incorporated reference items 1 2 5 6 7 8 annual report form 10k annual report shareholders year ended january 31 1998 21 list companys subsidiaries 23 consent independent auditors 27 financial data schedule filed herewith exhibit management contract compensatory plan arrangement b reports form 8k company file report form 8k last quarter fiscal year ended january 31 1998 index consolidated financial statements annual report shareholders page covered report independent auditors consolidated statements income three years period ended january 31 1998 26 consolidated balance sheets january 31 1998 1997 27 consolidated statements shareholders equity three years period ended january 31 1998 28 consolidated statements cash flows three years period ended january 31 1998 29 notes consolidated financial statements except note 10 3037 covered report independent auditors note 10 quarterly financial data unaudited 37 schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date april 16 1998 bysdavid glass david glass president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated date april 16 1998 ss robson walton robson walton chairman board date april 16 1998 sdavid glass david glass president chief executive officer director date april 16 1998 sdonald g soderquist donald g soderquist vice chairman board chief operating officer director date april 16 1998 spaul r carter paul r carter executive vice president walmart realty company director date april 16 1998 sjohn b menzer john b menzer executive vice president chief financial officer principal financial officer date april 16 1998 sjames walker jr james walker jr senior vice president controller principal accounting officer date april 16 1998 sjeronimo arango jeronimo arango chairman board cifra de cv director date april 16 1998 sjohn cooper jr john cooper jr director date april 16 1998 sstephen friedman stephen friedman director date april 16 1998 sstanley c gault stanley c gault director date april 16 1998 sfrederick humphries frederick humphries director date april 16 1998 se stanley kroenke e stanley kroenke director date april 16 1998 selizabeth sanders elizabeth sanders director date april 16 1998 sjack c shewmaker jack c shewmaker director date april 16 1998 spaula stern paula stern director date april 16 1998 sjohn walton john walton directoritem 14 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 21 annual report incorporated reference herein filed part form 10k 3 exhibits following documents filed exhibits form 10k 3a restated certificate incorporation company incorporated herein reference exhibit 3a annual report form 10k company year ended january 31 1989 certificate amendment restated certificate incorporation incorporated herein reference registration statement form s8 file number 3343315 3b bylaws company amended june 3 1993 incorporated herein reference exhibit 3b companys annual report form 10k year ended january 31 1994 4a form indenture dated june 1 1985 company bank new york trustee formerly boatmens trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 297917 4b form indenture dated august 1 1985 company bank new york trustee formerly boatmens trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 299162 4c form amended restated indenture mortgage deed trust assignment rents security agreement dated december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 10a form individual deferred compensation agreements incorporated herein reference exhibit 10bfrom annual report form 10k company amended year ended january 31 1986 10b walmart stores inc stock option plan 1984 incorporated herein reference registration statement form s8 file number 294358 10c 1986 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1987 10d 1991 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10h annual report form 10k company year ended january 31 1992 10e 1993 amendment walmart stores inc stock option plan 1984 incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1993 10f walmart stores inc stock option plan 1994 incorporated herein reference exhibit 4c registration statement form s8 file number 3355325 10g walmart stores inc director compensation plan incorporated herein reference exhibit 4d registration statement form s8 file number 33324259 10h walmart stores inc officer deferred compensation plan incorporated herein reference exhibit 10i annual report form 10k company year ended january 31 1996 10i walmart stores inc restricted stock plan incorporated herein reference exhibit 10j annual report form 10k company year ended january 31 1997 10j 1996 amendment walmart stores inc stock option plan 1994 incorporated herein reference exhibit 10j annual report form 10k company year ended january 31 1998 10k 1997 amendment walmart stores inc stock option plan 1994 incorporated herein reference exhibit 10k annual report form 10k company year ended january 31 1998 10l walmart stores inc stock incentive plan 1998 filed herewith exhibit form 10k 10m walmart stores inc management incentive plan 1998 filed herewith exhibit form 10k 13 information incorporated reference items 1 2 5 6 7 8 annual report form 10k annual report shareholders year ended january 31 1999 21 list companys subsidiaries 23 consent independent auditors 27 financial data schedule filed herewith exhibit management contract compensatory plan arrangement b reports form 8k company file report form 8k last quarter fiscal year ended january 31 1999 index consolidated financial statements annual report shareholders page covered report independent auditors consolidated statements income three years period ended january 31 1999 26 consolidated balance sheets january 31 1999 1998 27 consolidated statements shareholders equity three years period ended january 31 1999 28 consolidated statements cash flows three years period ended january 31 1999 29 notes consolidated financial statements except note 10 3037 covered report independent auditors note 10 quarterly financial data unaudited 38 schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date april 15 1999 sdavid glass david glass president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated date april 15 1999 robson walton chairman board date april 15 1999 sdavid glass david glass president chief executive officer director date april 15 1999 sdonald g soderquist donald g soderquist senior vice chairman board director date april 15 1999 sjohn b menzer john b menzer executive vice president chief financial officer principal financial officer date april 15 1999 sjames walker jr james walker jr senior vice president controller principal accounting officer date april 15 1999 sjeronimo arango jeronimo arango founder cifra sa de cv director walmart stores inc date april 15 1999 sjohn cooper jr john cooper jr director date april 15 1999 stephen friedman director date april 15 1999 stanley c gault director date april 15 1999 sroland hernandez roland hernandez director date april 15 1999 frederick humphries director date april 15 1999 se stanley kroenke e stanley kroenke director date april 15 1999 selizabeth sanders elizabeth sanders director date april 15 1999 sjack c shewmaker jack c shewmaker director date april 15 1999 paula stern director date april 15 1999 sjose h villarreal jose h villarreal director date april 15 1999 sjohn walton john walton directoritem 14 principal accounting fees services information required item incorporated herein reference information caption corporate governanceaudit committee preapproval policy caption corporate governanceproposal 2 ratification independent accountants included proxy statement part iv item 15 item 7 managements discussion analysis financial condition results operations information required item furnished incorporation reference information caption managements discussion analysis pages 14 15 16 annual report shareholders year ended january 31 1995 item 8item 7 managements discussion analysis financial condition results operations information required item furnished incorporation reference information caption managements discussion analysis pages 20 22 annual report shareholders year ended january 31 1996 item 8item 7 managements discussion analysis financial condition results operations information required item furnished incorporation reference information caption managements discussion analysis pages 24 26 annual report shareholders year ended january 31 1997 item 8item 7 management’s discussion analysis financial condition results operations information required item furnished incorporation reference information caption management’s discussion analysis pages 20 25 annual report shareholders year ended january 31 2000 item 7aitem 7 managements discussion analysis financial condition results operations information required item furnished incorporation reference information caption managements discussion analysis pages 18 23 annual report shareholders year ended january 31 2001 item 7ananitem 7 management’s discussion analysis financial condition results operations information required item furnished incorporation reference information caption management’s discussion analysis pages 18 29 annual report shareholders year ended january 31 2003 information included exhibit annual report item 7aitem 7 management’s discussion analysis results operations financial condition information required item incorporated reference information caption “management’s discussion analysis results operations financial condition” included annual report shareholders year ended january 31 2004 information included exhibit annual report item 7aitem 7 management’s discussion analysis results operations financial condition information required item incorporated reference information caption “management’s discussion analysis results operations financial condition” included annual report shareholders year ended january 31 2005 information included exhibit annual report form 10k item 7aitem 7 management’s discussion analysis financial condition results operations information required item incorporated reference information caption “management’s discussion analysis results operations financial condition” included annual report shareholders year ended january 31 2006 information included exhibit annual report form 10k item 7aitem 7 management’s discussion analysis financial condition results operations information required item incorporated reference information caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 7aitem 7 management’s discussion analysis financial condition results operations information required item incorporated reference information caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 7aitem 7 management’s discussion analysis financial condition results operations information required item incorporated reference information caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 7aitem 7 management’s discussion analysis financial condition results operations information required item incorporated reference information caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 7aitem 7 management’s discussion analysis financial condition results operations information required item incorporated reference information caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 7aitem 7 management’s discussion analysis financial condition results operations information required item incorporated reference information caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 7aitem 7 managements discussion analysis financial condition results operations information required item incorporated reference information caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 7aitem 7 managements discussion analysis financial condition results operations information required item incorporated reference information caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 7aitem 7 managements discussion analysis financial condition results operations information required item incorporated reference information caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 7aitem 7 managements discussion analysis financial condition results operations information required item incorporated reference information caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 7aitem 7 managements discussion analysis financial condition results operations overview walmart inc walmart company engaged retail wholesale operations various formats around world operations help people around world save money live better anytime anywhere retail stores ecommerce innovation striving create customercentric experience seamlessly integrates digital physical shopping omnichannel offering saves time customers physical retail encompasses brick mortar presence markets operate digital retail ecommerce comprised ecommerce websites mobile commerce applications transactions involving ecommerce platform physical format refer omnichannel week serve nearly 270 million customers visit 11700 stores numerous ecommerce websites 65 banners 28 countries strategy lead price invest differentiate access competitive assortment deliver great experience leading price earn trust customers every day providing broad assortment quality merchandise services everyday low prices edlp pricing philosophy price items low price every day customers trust prices change frequent promotional activity price leadership core everyday low cost edlc commitment control expenses cost savings passed along customers physical digital presence investing integrate seamless omnichannel provides customers convenient access broad assortment anytime anywhere strive give customers members great shopping experience whichever shopping method prefer operations consist three reportable segments walmart us walmart international sams club • walmart us largest segment three primary store formats ecommerce well omnichannel offering three reportable segments walmart us historically highest gross profit percentage net sales gross profit rate addition historically contributed greatest amount companys net sales operating income • walmart international consists operations outside us includes retail wholesale businesses categories including ecommerce consist many formats including supercenters supermarkets hypermarkets warehouse clubs including sams clubs cash carry overall gross profit rate walmart international lower walmart us primarily merchandise mix walmart international second largest segment grown recent years adding retail wholesale units expanding ecommerce • sams club consists membershiponly warehouse clubs well ecommerce samsclubcom membershiponly warehouse club membership income significant component segments operating income sams club operates lower gross profit rate lower operating expenses percentage net sales segments contributes companys operating results differently however generally maintained consistent contribution rate companys net sales operating income recent years minor changes contribution rate walmart international segment due fluctuations currency exchange rates fiscal year ends january 31 us canadian operations consolidate operations generally using onemonth lag calendar year basis business seasonal certain extent due calendar events national religious holidays well weather patterns generally highest sales volume operating income occurred fiscal quarter ending january 31 discussion presents results fiscal years ended january 31 2018 fiscal 2018 january 31 2017 fiscal 2017 january 31 2016 fiscal 2016 read conjunction consolidated financial statements accompanying notes intend discussion provide reader information assist understanding financial statements changes certain key items financial statements period primary factors accounted changes also discuss certain performance metrics management uses assess companys performance additionally discussion provides information financial results three segments business provide better understanding segments results operations affect financial condition results operations company whole throughout managements discussion analysis financial condition results operations discuss segment operating income comparable store club sales measures management measures results companys segments using segments operating income including certain corporate overhead allocations well measures time revise measurement segments operating income including certain corporate overhead allocations measures determined information regularly reviewed chief operating decision maker previous period amounts balances reclassified conform current periods presentation comparable store club sales comparable sales metric indicates performance existing stores clubs measuring change sales stores clubs including ecommerce sales particular period corresponding period previous year walmarts definition comparable sales includes sales stores clubs open previous 12 months including remodels relocations expansions conversions well ecommerce sales measure ecommerce sales impact including sales initiated online though mobile applications including omnichannel transactions fulfilled stores clubs sales store changed format excluded comparable sales conversion store accompanied relocation expansion results change stores retail square feet five percent additionally sales related ecommerce acquisitions excluded acquisitions owned 12 months comparable sales also referred samestore sales others within retail industry method calculating comparable sales varies across retail industry result calculation comparable sales necessarily comparable similarly titled measures reported companies discussing operating results use term currency exchange rates refer currency exchange rates use convert operating results countries functional currency us dollar us dollars financial reporting purposes calculate effect changes currency exchange rates prior period current period difference current period activity translated using current periods currency exchange rates current period activity translated using comparable prior year periods currency exchange rates throughout discussion refer results calculation impact currency exchange rate fluctuations volatility currency exchange rates may impact results including net sales operating income company walmart international segment future retail industry operate highly competitive retail industry markets serve face strong sales competition discount department drug dollar variety specialty stores warehouse clubs supermarkets well ecommerce businesses many competitors national regional international chains national international online presence compete number companies prime retail site locations well attracting retaining quality employees associates along retail companies influenced number factors including limited catastrophic events weather competitive pressures consumer disposable income consumer debt levels buying patterns consumer credit availability cost goods currency exchange rate fluctuations customer preferences deflation inflation fuel energy prices general economic conditions insurance costs interest rates labor costs tax rates cybersecurity attacks unemployment information factors affect operating results certain risks company investment securities found herein item 1a risk factors cautionary statement regarding forwardlooking statements company performance metrics committed helping customers save money live better everyday low prices supported everyday low costs times adjust business strategies maintain strengthen competitive positions countries operate financial framework defined • strong efficient growth • operating discipline • strategic capital allocation execute financial framework believe returns capital improve time strong efficient growth objective prioritizing strong efficient growth means focus increasing comparable sales ecommerce sales growth slowing rate growth new stores clubs times make strategic investments focused longterm growth company may benefit comparable sales near term comparable sales metric indicates performance existing stores clubs measuring change sales stores clubs including ecommerce sales particular period corresponding period previous year retail industry generally reports comparable sales using retail calendar also known 454 calendar consistent retail industry provide comparable sales using retail calendar quarterly earnings releases however discuss comparable sales referring calendar comparable sales calculated using fiscal calendar fiscal calendar differs retail calendar fiscal calendar comparable sales also differ retail calendar comparable sales provided quarterly earnings releases calendar comparable sales well impact fuel fiscal 2018 2017 follows comparable sales us including fuel increased 22 14 fiscal 2018 2017 respectively compared previous fiscal year fiscal 2018 total us comparable sales positively impacted continued traffic improvement higher ecommerce sales impact higher fuel sales ecommerce sales positively impacted comparable sales approximately 07 walmart us sams club fiscal 2018 fiscal 2017 total us comparable sales positively impacted continued traffic improvement higher ecommerce sales walmart us segment partially offset negative impact lower fuel sales primarily due lower fuel prices sams club segment ecommerce sales positively impacted comparable sales approximately 04 07 walmart us sams club respectively fiscal 2017 past focused adding new stores clubs us understanding additional stores clubs may take sales away existing units reduced number new store club openings fiscal 2018 negative impact comparable sales result openings significant expect trend continue future well fiscal 2017 estimate negative impact comparable sales result opening new stores clubs approximately 07 estimate calculated primarily comparing sales trends impacted stores clubs identified based proximity new stores clubs nearby nonimpacted stores clubs case measured new stores clubs opened operating discipline operate discipline managing expenses optimizing efficiency work measure operating discipline expense leverage define net sales growing faster rate operating expenses fiscal 2018 operating selling general administrative operating expenses percentage net sales increased 32 basis points compared period previous fiscal year increase net sales improving expense management positive impact operating expenses percentage net sales leverage expenses result approximately 06 billion charges related sams club closures discontinued real estate projects approximately 400 million related lump sum bonus paid associates 300 million related home office severance legal accrual 283 million related fcpa matter charge 244 million related walmart us discontinued real estate projects decisions exit certain international properties wind first party brazil ecommerce operations strategic capital allocation allocating capital remodels ecommerce technology supply chain less new store club openings compared prior years allocation aligns initiatives improving customer proposition stores clubs integrating digital physical shopping following table provides additional detail total us capital expenditures decreased 478 million fiscal 2018 compared previous fiscal year capital expenditures related new stores clubs including expansions relocations decreased 13 billion partially offset increases capital expenditures remodels ecommerce technology supply chain changes result shift capital allocation strategy support growth comparable store club sales ecommerce slowing rate open new stores clubs returns execute financial framework believe returns capital improve time measure returns capital return investment free cash flow metrics addition provide returns form share repurchases dividends discussed liquidity capital resources section return assets return investment include return assets roa directly comparable measure based financial statements presented accordance generally accepted accounting principles us gaap return investment roi metrics assess returns assets roi considered nongaap financial measure management believes roi meaningful metric share investors helps investors assess effectively walmart deploying assets trends roi fluctuate time management balances longterm potential strategic initiatives possible shortterm impacts roa 52 72 fiscal years ended january 31 2018 2017 respectively decline roa primarily due loss extinguishment debt decrease operating income fiscal year ended january 31 2018 roi 142 152 fiscal years ended january 31 2018 2017 respectively decline roi primarily due decrease operating income fiscal year ended january 31 2018 define roi adjusted operating income operating income plus interest income depreciation amortization rent expense fiscal year trailing 12 months divided average invested capital period consider average invested capital average beginning ending total assets plus average accumulated depreciation average accumulated amortization less average accounts payable average accrued liabilities period plus rent factor equal rent fiscal year trailing 12 months multiplied factor eight discontinued operations exclude impact discontinued operations calculation roi considered nongaap financial measure calculate roi using financial measures exclude include amounts included excluded directly comparable financial measure calculated presented accordance gaap example exclude impact depreciation amortization reported operating income calculating numerator calculation roi addition include factor eight rent expense estimates hypothetical capitalization operating leases mentioned consider roa financial measure computed accordance gaap directly comparable financial measure calculation roi differs roa consolidated net income period divided average total assets period roi adjusts operating income exclude certain expense items adds interest income adjusts total assets impact accumulated depreciation amortization accounts payable accrued liabilities incorporates factor rent arrive total invested capital adjustments mentioned believe roi accurately measures deploying key assets meaningful investors roa although roi standard financial metric numerous methods exist calculating companys roi result method used management calculate roi may differ methods used companies calculate roi calculation roa roi along reconciliation roi calculation roa comparable gaap financial measure follows 1 average based addition account balance end current period account balance end prior period dividing 2 free cash flow free cash flow considered nongaap financial measure management believes however free cash flow measures ability generate additional cash business operations important financial measure use evaluating companys financial performance free cash flow considered addition rather substitute consolidated net income measure performance net cash provided operating activities measure liquidity see liquidity capital resources discussions gaap metrics including net cash provided operating activities net cash used investing activities net cash used financing activities define free cash flow net cash provided operating activities period minus payments property equipment made period net cash provided operating activities 283 billion 317 billion 276 billion fiscal 2018 2017 2016 respectively generated free cash flow 183 billion 211 billion 161 billion fiscal 2018 2017 2016 respectively decreases net cash provided operating activities free cash flow fiscal 2018 fiscal 2017 primarily due timing tax payments well lapping previous years improvements working capital management benefit application tax regulations adopted fiscal 2017 increase net cash provided operating activities free cash flow fiscal 2017 fiscal 2016 primarily due improved working capital management additionally benefited application new tax regulations related accelerated deduction remodels related expenses walmarts definition free cash flow limited represent residual cash flows available discretionary expenditures due fact measure deduct payments required debt service contractual obligations payments made business acquisitions therefore believe important view free cash flow measure provides supplemental information consolidated statements cash flows although companies report free cash flow numerous methods may exist calculating companys free cash flow result method used walmarts management calculate free cash flow may differ methods used companies calculate free cash flow following table sets forth reconciliation free cash flow nongaap financial measure net cash provided operating activities believe gaap financial measure directly comparable free cash flow well information regarding net cash used investing activities net cash used financing activities 1 net cash used investing activities includes payments property equipment also included computation free cash flow results operations consolidated results operations total revenues mostly comprised net sales also include membership income increased 145 billion 30 37 billion 08 fiscal 2018 2017 respectively compared previous fiscal year net sales increased 144 billion 30 27 billion 06 fiscal 2018 2017 respectively compared previous fiscal year fiscal 2018 net sales positively impacted overall positive comparable sales impact new store openings sales generated ecommerce acquisitions additionally fiscal 2018 increase net sales partially offset reduction net sales 19 billion due divesting yihaodian suburbia businesses 05 billion negative impact fluctuations currency exchange rates fiscal 2017 net sales positively impacted overall positive comparable sales 13 yearoveryear growth consolidated retail square feet positive effect factors consolidated net sales fiscal 2017 partially offset negative impact 110 billion 23 result fluctuations currency exchange rates 04 billion decrease fuel sales lower fuel prices sams club segment gross profit rate decreased 26 basis points fiscal 2018 increased 36 basis points fiscal 2017 compared previous fiscal year fiscal 2018 decrease primarily due strategic price investments mix impact ecommerce fiscal 2017 increase gross profit rate primarily due improved margin food consumables including impact savings procuring merchandise lower transportation expense lower fuel costs walmart us segment additionally improvement certain markets inventory management cost analytics programs walmart international segment also positively impacted gross profit rate fiscal 2017 operating expenses percentage net sales increased 32 88 basis points fiscal 2018 2017 respectively compared previous fiscal year fiscal 2018 increase operating expenses percentage net sales primarily due approximately 06 billion charges related sams club closures discontinued real estate projects approximately 400 million related lump sum bonus paid associates 300 million related home office severance legal accrual 283 million related fcpa matter third quarter charge 244 million related discontinued real estate projects walmart us decisions exit certain international properties wind first party brazil ecommerce operations fiscal 2017 increase operating expenses percentage net sales primarily due increase wage expense walmart us sams club segments resulting continued investment associate wage structure 370 million charge related discontinued domestic real estate projects severance continued investments ecommerce technology increase operating expenses percentage net sales fiscal 2017 partially offset impact store closures fourth quarter fiscal 2016 membership income relatively flat fiscal 2018 increased 10 billion fiscal 2017 compared period previous fiscal year fiscal 2018 included 387 million gain sale suburbia 47 million gain land sale higher recycling income sustainability efforts higher membership income increased plus member penetration sams club gains less gains recognized fiscal 2017 fiscal 2017 included 535 million gain sale yihaodian business 194 million gain sale shopping malls chile fiscal 2018 loss extinguishment debt 31 billion due early extinguishment longterm debt allowed us retire higher rate debt reduce interest expense future periods effective income tax rate 304 fiscal 2018 303 fiscal 2017 2016 although relatively consistent yearoveryear effective income tax rate may fluctuate period result factors including changes assessment certain tax contingencies valuation allowances changes tax laws outcomes administrative audits impact discrete items mix earnings among us operations international operations reconciliation us statutory rate effective income tax rates fiscal 2018 2017 2016 presented note 9 notes consolidated financial statements describes impact enactment tax cuts jobs act 2017 tax act fiscal 2018 effective income tax rate result factors discussed reported 105 billion 143 billion consolidated net income fiscal 2018 2017 respectively represents decrease 38 billion 08 billion fiscal 2018 2017 respectively compared previous fiscal year diluted net income per common share attributable walmart eps 328 438 fiscal 2018 2017 respectively walmart us segment net sales walmart us segment increased 106 billion 35 95 billion 32 fiscal 2018 2017 respectively compared previous fiscal year increases net sales primarily due increases comparable store sales 21 16 fiscal 2018 2017 respectively yearoveryear growth retail square feet 07 14 fiscal 2018 2017 respectively additionally fiscal 2018 sales generated ecommerce acquisitions contributed yearoveryear increase gross profit rate decreased 24 basis points fiscal 2018 increased 24 basis points fiscal 2017 compared previous fiscal year fiscal 2018 decrease primarily due strategic price investments mix impact ecommerce partially offsetting negative factors fiscal 2018 positive impact savings procuring merchandise fiscal 2017 increase gross profit rate primarily due improved margin food consumables including impact savings procuring merchandise lower transportation expense lower fuel costs operating expenses percentage segment net sales relatively flat fiscal 2018 increased 101 basis points fiscal 2017 compared previous fiscal year fiscal 2018 fiscal 2017 included charges related discontinued real estate projects 244 million 249 million respectively fiscal 2017 increase primarily driven increase wage expense due investment associate wage structure charge related discontinued real estate projects investments digital retail technology increase operating expenses percentage segment net sales fiscal 2017 partially offset impact store closures fiscal 2016 result factors discussed segment operating income increased 124 million fiscal 2018 decreased 13 billion fiscal 2017 respectively walmart international segment net sales walmart international segment increased 19 billion 17 fiscal 2018 decreased 73 billion 59 fiscal 2017 compared previous fiscal year fiscal 2018 increase net sales due positive comparable sales majority markets impact new stores partially offset reduction net sales 19 billion due divesting yihaodian suburbia businesses 05 billion negative impact fluctuations currency exchange rates fiscal 2017 decrease net sales due 110 billion negative impact fluctuations currency exchange rates additionally net sales fiscal 2017 impacted positive comparable sales markets except united kingdom yearoveryear growth retail square feet 12 gross profit rate decreased 28 basis points fiscal 2018 increased 46 basis points fiscal 2017 compared previous fiscal year fiscal 2018 decrease gross profit rate primarily due strategic price investments certain markets fiscal 2017 increase gross profit rate primarily due improvement certain markets inventory management cost analytics programs membership income decreased 140 fiscal 2018 increased 694 fiscal 2017 compared previous fiscal year fiscal 2018 included 387 million gain sale suburbia 47 million gain land sale gains less gains recognized fiscal 2017 fiscal 2017 included 535 million gain sale yihaodian business 194 million gain sale shopping malls chile operating expenses percentage segment net sales decreased 11 basis points fiscal 2018 increased 58 basis points fiscal 2017 compared previous fiscal year decrease operating expenses percentage segment net sales fiscal 2018 primarily due increase net sales partially offset restructuring impairment charges certain markets approximately 05 billion including charges decisions exit certain properties wind first party brazil ecommerce operations increase operating expenses percentage segment net sales fiscal 2017 primarily due declining sales relatively flat fixed costs united kingdom well adjustments useful lives certain assets impairment charges certain markets segment operating income negatively impacted fluctuations currency exchange rates 68 million 642 million fiscal 2018 2017 respectively result factors discussed segment operating income decreased 406 million fiscal 2018 increased 412 million fiscal 2017 respectively sams club segment believe information table caption excluding fuel useful investors permits investors understand effect sams club segments fuel sales results operations impacted volatility fuel prices volatility fuel prices may continue impact operating results sams club segment future net sales sams club segment increased 19 billion 32 05 billion 09 fiscal 2018 2017 respectively compared previous fiscal year fiscal 2018 increase net sales primarily due increase comparable sales benefited increase 07 billion fuel sales higher fuel prices fiscal 2018 fiscal 2017 increase net sales primarily due increase comparable sales without fuel driven higher ecommerce sales yearoveryear increase retail square feet 09 partially offset decrease 04 billion fuel sales primarily lower fuel prices fiscal 2017 future net sales negatively impacted decision remove tobacco certain clubs gross profit rate decreased 44 basis points fiscal 2018 increased 39 basis points fiscal 2017 compared previous fiscal year fiscal 2018 decrease gross profit rate primarily due impact markdowns liquidate inventory related club closures reclassification certain supply expenses operating expenses cost goods sold higher inventory shrink increased shipping costs samsclubcom investment cash rewards fiscal 2017 increase gross profit rate primarily due margin rate improvement home apparel health wellness grocery partially offset changes merchandise mix growth cash rewards program membership income increased 23 fiscal 2018 decreased 65 fiscal 2017 compared previous fiscal year fiscal 2018 increase membership income primarily due higher recycling income sustainability efforts increase 13 membership income resulting increased plus member penetration fiscal 2017 decrease primarily due reduction income partially offset increase 23 membership income result increased plus member renewals operating expenses percentage segment net sales increased 80 49 basis points fiscal 2018 2017 respectively compared previous fiscal year fiscal 2018 increase operating expenses percentage segment net sales primarily due charge approximately 06 billion related club closures discontinued real estate projects fiscal 2017 increase operating expenses percentage segment net sales primarily due increase wage benefit incentive expenses investment associate wage structure well investments ecommerce technology increase advertising expense result factors discussed segment operating income decreased 689 million 149 million fiscal 2018 2017 respectively liquidity capital resources liquidity strength stability operations historically supplied us significant source liquidity cash flows provided operating activities supplemented longterm debt shortterm borrowings sufficient fund operations allowing us invest activities support longterm growth operations generally remaining available cash flow used fund dividends common stock share repurchases believe sources liquidity continue adequate fund operations finance global investment expansion activities pay dividends fund share repurchases foreseeable future net cash provided operating activities net cash provided operating activities 283 billion 317 billion 276 billion fiscal 2018 2017 2016 respectively decrease net cash provided operating activities fiscal 2018 compared previous fiscal year due timing tax payments well lapping previous years improvements working capital management benefit application tax regulations adopted fiscal 2017 increase net cash provided operating activities fiscal 2017 compared previous fiscal year primarily due improved working capital management additionally benefited application new tax regulations related accelerated deduction remodels related expenses cash equivalents working capital cash equivalents 68 billion 69 billion january 31 2018 2017 respectively working capital deficit 189 billion 92 billion january 31 2018 2017 respectively increase working capital deficit reflects increase shortterm borrowings part longterm debt extinguishment activity well improved procurement inventory management generally operate working capital deficit due efficient use cash funding operations consistent access capital markets returns provided shareholders form payments cash dividends share repurchases use intercompany financing arrangements effort ensure cash made available country needed minimum cost possible believe necessary repatriate earnings held outside us anticipate domestic liquidity needs met cash flows provided domestic operating activities supplemented longterm debt shortterm borrowings accordingly intend certain exceptions continue indefinitely reinvest earnings held outside us foreign operations part us tax reform enacted december 22 2017 currently assessing impact new legislation turn impact assertion regarding potential future repatriation intentions respect reinvestment change amounts held within foreign operations could repatriated us although repatriation new us tax laws could subject incremental withholding taxes expect current local laws existing limitations potential taxes anticipated future repatriations cash amounts held outside us material effect overall liquidity financial condition results operations january 31 2018 2017 cash equivalents 14 billion 10 billion respectively may freely transferable us due local laws restrictions net cash used investing activities net cash used investing activities 91 billion 140 billion 107 billion fiscal 2018 2017 2016 respectively generally consisted payments remodel existing stores clubs expand ecommerce capabilities invest technologies add stores clubs net cash used investing activities decreased 49 billion fiscal 2018 compared previous fiscal year fiscal 2018 included cash received 10 billion sale suburbia mexico fiscal 2017 included acquisition jetcom inc jetcom approximately 24 billion purchase 19 billion available sale securities jdcom jd net cash used investing activities increased 33 billion fiscal 2017 compared previous fiscal year primarily due acquisition jetcom investment jd partially offset 07 billion cash received sales shopping malls chile refer note 13 consolidated financial statements details acquisition jetcom investment jd additionally refer strategic capital allocation section company performance metrics capital expenditure detail fiscal 2018 2017 continued focus ecommerce including seamless omnichannel shopping experience segments fiscal 2018 fiscal 2018 accomplishments area include growing online grocery 1100 pickup locations us new dedicated ecommerce fulfillment centers twoday free shipping membership fee walmart us onehour delivery stores china growth activities fiscal year ending january 31 2019 fiscal 2019 project capital expenditures approximately 110 billion involve • walmart us continuing prioritize store remodels digital experiences approximately 1000 additional online grocery locations • walmart international investing fulfillment capabilities addition new stores • ecommerce investments include enhanced supply chain capabilities globally fiscal 2019 expect add approximately 280 new expanded relocated stores clubs approximately 255 walmart international focusing key markets mexico china net cash used financing activities net cash flows used financing activities generally consist transactions related shortterm longterm debt financing obligations dividends paid repurchase company stock transactions noncontrolling interests also classified cash flows financing activities net cash used financing activities increased 08 billion 28 billion fiscal 2018 2017 respectively compared period previous fiscal year net cash used financing activities fiscal 2018 increased due premiums paid early extinguishment debt net cash used financing activities fiscal 2017 increased primarily due repurchases company stock partially offset lower repayments longterm debt discussion financing activities provided major category shortterm borrowings net cash flows provided shortterm borrowings increased 41 billion fiscal 2018 decreased 17 billion fiscal 2017 compared balance end previous fiscal year generally utilize liquidity provided shortterm borrowings provide funding operations dividend payments share repurchases capital expenditures cash requirements fiscal 2018 additional cash provided shortterm borrowings primarily due timing january 2018 debt extinguishment fiscal 2017 decrease net cash flows provided shortterm borrowings due improved cash flows operations driven working capital improvements changes tax regulations following table includes additional information related companys shortterm borrowings fiscal 2018 2017 2016 addition shortterm borrowings also various undrawn committed lines credit us provide 125 billion various undrawn committed lines credit outside us provide approximately 40 billion additional liquidity needed longterm debt following table provides changes longterm debt fiscal 2018 total longterm debt decreased 45 billion fiscal 2018 primarily due extinguishment maturities certain longterm debt partially offset issuance longterm debt extinguishment certain longterm debt allowed us retire higher rate debt reduce interest expense future periods dividends total dividend payments 61 billion 62 billion 63 billion fiscal 2018 2017 2016 respectively february 20 2018 board directors approved fiscal 2019 annual dividend 208 per share increase fiscal 2018 annual dividend 204 per share fiscal 2019 annual dividend paid four quarterly installments 052 per share according following record payable dates company share repurchase program time repurchase shares common stock share repurchase programs authorized companys board directors repurchases made fiscal year prior november 20 2017 made plan effect beginning fiscal 2018 october 9 2017 board directors approved new 200 billion share repurchase program beginning november 20 2017 replaced previous share repurchase program january 31 2018 authorization 188 billion share repurchases remained current share repurchase program repurchased shares constructively retired returned unissued status regularly review share repurchase activity consider several factors determining execute share repurchases including among things current cash needs capacity leverage cost borrowings results operations market price common stock anticipate significant majority ongoing share repurchase program funded companys free cash flows following table provides settlement date basis number shares repurchased average price paid per share total amount paid share repurchases fiscal 2018 2017 2016 share repurchases flat fiscal 2018 increased 42 billion fiscal 2017 respectively compared previous fiscal year significant transactions noncontrolling interests fiscal 2016 described note 13 consolidated financial statements completed purchase remaining noncontrolling interest yihaodian ecommerce operations china approximately 760 million using existing cash complete transaction company subsequently sold yihaodian jd fiscal 2017 capital resources believe cash flows operations current cash position access capital markets continue sufficient meet anticipated operating cash needs include funding seasonal buildups merchandise inventories funding capital expenditures dividend payments share repurchases strong commercial paper longterm debt ratings enabled continue enable us refinance debt becomes due favorable rates capital markets january 31 2018 ratings assigned commercial paper rated series outstanding longterm debt follows credit rating agencies review ratings periodically therefore credit ratings assigned us agency may subject revision time accordingly able predict whether current credit ratings remain consistent time factors could affect credit ratings include changes operating performance general economic environment conditions retail industry financial position including total debt capitalization changes business strategy downgrade credit ratings credit rating agency could increase future borrowing costs impair ability access capital credit markets terms commercially acceptable us addition downgrade current shortterm credit ratings could impair ability access commercial paper markets flexibility experienced historically potentially requiring us rely heavily expensive types debt financing credit rating agency ratings recommendations buy sell hold commercial paper debt securities rating may subject revision withdrawal time assigning rating organization evaluated independently rating moreover credit rating specific security applies contractual obligations following table sets forth certain information concerning obligations make contractual future payments debt lease agreements certain contingent commitments january 31 2018 1 longterm debt includes fair value derivatives designated fair value hedges 2 capital lease financing obligations includes executory costs imputed interest related capital lease financing obligations yet recorded refer note 11 consolidated financial statements information 3 represents minimum contractual obligation noncancelable leases initial remaining terms greater 12 months january 31 2018 additionally company 125 billion undrawn committed lines credit us approximately 40 billion undrawn committed lines credit outside us drawn upon would included current liabilities section companys consolidated balance sheets estimated interest payments based principal amounts expected maturities debt outstanding january 31 2018 assumes interest rates remain current levels variable rate debt purchase obligations include legally binding contracts firm commitments inventory utility purchases well commitments make capital expenditures software acquisition license commitments legally binding service contracts purposes table contractual obligations purchase goods services defined agreements enforceable legally binding specify significant terms including fixed minimum quantities purchased fixed minimum variable price provisions approximate timing transaction contracts specify company purchase portion requirements specific product service supplier include fixed minimum quantity excluded table additionally purchase orders inventory included table purchase orders represent authorizations purchase rather binding agreements purchase orders based current inventory needs fulfilled suppliers within short time periods also enter contracts outsourced services however obligations contracts significant contracts generally contain clauses allowing cancellation without significant penalty expected timing payment discussed estimated based current information timing payments actual amounts paid may different depending timing receipt goods services changes agreedupon amounts obligations addition amounts shown table 10 billion unrecognized tax benefits considered uncertain tax positions recorded liabilities timing payment associated liabilities uncertain refer note 9 consolidated financial statements additional discussion unrecognized tax benefits balance sheet arrangements january 31 2018 offbalance sheet arrangements reasonably likely current future material effect consolidated financial condition results operations liquidity capital expenditures capital resources matters discuss existing fcpa investigation related matters including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein also discuss various legal proceedings related fcpa investigation item 3 herein caption part item 3 legal proceedings subcaption ii certain proceedings discuss equal value claims united kingdom subsidiary asda stores ltd including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein discuss national prescription opiate litigation including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein summary critical accounting estimates management strives report financial results clear understandable manner although cases accounting disclosure rules complex require us use technical terminology preparing companys consolidated financial statements follow accounting principles generally accepted us principles require us make certain estimates apply judgments affect financial position results operations reflected financial statements judgments estimates based past events expectations future outcomes actual results may differ estimates management continually reviews accounting policies applied reported disclosed financial statements following summary critical accounting estimates applied preparation financial statements inventories value inventories lower cost market determined primarily retail inventory method accounting using lastin firstout lifo method walmart us segments inventories inventory walmart international segment valued primarily retail inventory method accounting using firstin firstout fifo method retail inventory method accounting results inventory valued lower cost market since permanent markdowns immediately recorded reduction retail value inventory sams club segment valued using weightedaverage cost lifo method retail method accounting inventory valued lower cost market determined applying costtoretail ratio merchandise groupings retail value fifo costtoretail ratio generally based fiscal year purchase activity costtoretail ratio measuring lifo provision based initial margin fiscal year purchase activity less impact permanent markdowns retail method accounting requires management make certain judgments estimates may significantly impact ending inventory valuation cost well amount gross profit recognized judgments made include recording markdowns used sell inventory shrinkage management determines ability sell inventory diminished markdowns clearance activity related cost impact recorded factors considered determination markdowns include current anticipated demand customer preferences age merchandise well seasonal fashion trends changes weather customer preferences could also cause changes amount timing markdowns year necessary record lifo provision estimated annual effect inflation estimates adjusted actual results determined yearend lifo provision calculated based inventory levels markup rates internally generated retail price indices measure sensitivity 1 increase retail price indices would resulted decrease carrying value inventory january 31 2018 2017 inventories valued lifo approximated inventories valued fifo provide estimated inventory losses shrinkage physical inventory counts basis historical percentage sales following annual inventory counts provision adjusted reflect updated historical results historically estimated inventory losses materially accurate compared annual inventory counts expect trend continue impairment assets evaluate longlived assets goodwill assets indefinite lives indicators impairment whenever events changes circumstances indicate carrying amounts may recoverable managements judgments regarding existence impairment indicators based market conditions financial performance evaluation longlived assets performed lowest level identifiable cash flows generally individual store level variability factors depends number conditions including uncertainty future events changes demographics thus accounting estimates may change period factors could cause management conclude indicators impairment exist require impairment tests performed could result management determining value longlived assets impaired resulting writedown related longlived assets although impairment charges fiscal 2018 14 billion charges primarily related restructuring activities described note 14 well discontinued real estate projects us decisions exit certain international properties impairment charges related restructuring activities decisions exit properties fiscal 2018 material would change materially 10 decrease undiscounted cash flows stores indicators impairment additionally total impairment charges fiscal 2017 material goodwill indefinitelived acquired intangible assets amortized evaluated impairment annually whenever events changes circumstances indicate value certain asset may impaired generally evaluation begins qualitative assessment determine whether quantitative impairment test necessary determine performing assessment based qualitative factors fair value reporting unit likely less carrying amount fair value reporting unit substantially excess carrying amount cannot assured quantitative impairment test would performed quantitative test impairment requires management make judgments relating future cash flows growth rates economic market conditions evaluations based determining fair value reporting unit asset using valuation method discounted cash flow relative marketbased approach historically reporting units indefinitelived acquired intangible assets generated sufficient returns recover cost goodwill indefinitelived acquired intangible assets nature factors used tests different conditions occur future periods future operating results could materially impacted approximately 300 million certain acquired indefinitelived intangible assets fair value approximated carrying value deterioration fair value may result impairment charge income taxes income taxes significant effect net earnings subject income taxes us numerous foreign jurisdictions accordingly determination provision income taxes requires significant judgment use estimates interpretation application complex tax laws effective income tax rate affected many factors including changes assessment certain tax contingencies increases decreases valuation allowances changes tax law outcomes administrative audits impact discrete items mix earnings among us international operations statutory rates generally lower us statutory rate may fluctuate result tax returns routinely audited settlements issues raised audits sometimes affect tax provisions benefits uncertain tax positions recorded financial statements determining likely probability uncertain tax positions withstand challenge taxing authorities facts circumstances change reassess probabilities record changes financial statements appropriate account uncertain tax positions determining minimum recognition threshold tax position required meet recognized financial statements determination requires use significant judgment evaluating tax positions assessing timing amounts deductible taxable items deferred tax assets represent amounts available reduce income taxes payable taxable income future years assets arise temporary differences financial reporting tax bases assets liabilities well net operating loss tax credit carryforwards deferred tax assets evaluated future realization reduced valuation allowance extent portion likely realized many factors considered assessing whether likely deferred tax assets realized including recent cumulative earnings expectations future taxable income carryforward periods relevant quantitative qualitative factors recoverability deferred tax assets evaluated assessing adequacy future expected taxable income sources including reversal taxable temporary differences forecasted operating earnings available tax planning strategies evaluation relies heavily estimates december 22 2017 tax cuts jobs act 2017 tax act enacted contains significant changes us income tax law effective 2018 tax act reduces us statutory tax rate 35 percent 21 percent creates new taxes foreignsourced earnings relatedparty payments addition company subject onetime transition tax fiscal 2018 accumulated foreign subsidiary earnings previously subject us income tax fourth quarter fiscal 2018 company recorded net tax benefit 02 billion related enactment tax act benefit primarily related remeasurement companys deferred tax assets liabilities considering tax acts newly enacted tax rates net tax acts onetime transition tax previously unremitted earnings nonus subsidiaries discussed note 9 consolidated financial statements company collects prepares necessary data interprets tax act additional guidance issued us treasury department irs standardsetting bodies company may make adjustments provisional amounts adjustments may materially impact provision income taxes effective tax rate period adjustments made accounting tax effects tax act provisional completed measurement period provided staff accounting bulletin 118 item 7aitem 7 managements discussion analysis financial condition results operations overview discussion presents results fiscal years ended january 31 2019 fiscal 2019 january 31 2018 fiscal 2018 january 31 2017 fiscal 2017 read conjunction consolidated financial statements accompanying notes intend discussion provide reader information assist understanding financial statements changes certain key items financial statements period primary factors accounted changes also discuss certain performance metrics management uses assess companys performance additionally discussion provides information financial results three segments provide better understanding segments results operations affect financial condition results operations company whole management measures results companys segments using segments operating income including certain corporate overhead allocations well measures time revise measurement segments operating income measures determined information regularly reviewed chief operating decision maker fiscal 2019 company revised certain corporate overhead allocations including depreciation expense operating segments accordingly revised prior period amounts comparability management also measures results comparable store club sales comparable sales metric indicates performance existing stores clubs measuring change sales stores clubs including ecommerce sales particular period corresponding period previous year walmarts definition comparable sales includes sales stores clubs open previous 12 months including remodels relocations expansions conversions well ecommerce sales measure ecommerce sales impact including sales initiated online though mobile applications including omnichannel transactions fulfilled stores clubs sales store changed format excluded comparable sales conversion store accompanied relocation expansion results change stores retail square feet five percent additionally sales related acquisitions excluded acquisitions owned 12 months comparable sales also referred samestore sales others within retail industry method calculating comparable sales varies across retail industry result calculation comparable sales necessarily comparable similarly titled measures reported companies discussing operating results term currency exchange rates refers currency exchange rates use convert operating results countries functional currency us dollar us dollars countries experiencing hyperinflation calculate effect changes currency exchange rates difference current period activity translated using current periods currency exchange rates comparable prior year periods currency exchange rates additionally currency exchange rate fluctuations calculated nonusd acquisitions owned 12 months throughout discussion refer results calculation impact currency exchange rate fluctuations volatility currency exchange rates may impact results including net sales operating income company walmart international segment future business seasonal certain extent due calendar events national religious holidays well weather patterns generally highest sales volume operating income occurred fiscal quarter ending january 31 made certain strategic portfolio decisions discussed item 1 business include following • acquisition 81 percent outstanding shares 77 percent diluted shares flipkart private limited flipkart august 2018 ongoing operations negatively impacted fiscal 2019 net income negative impact continue fiscal 2020 • proposed combination j sainsbury plc asda group limited asda would receive approximately 42 percent share capital combined company however held sale criteria met january 31 2019 assurance whether regulatory approval obtained proposed combination consummated future held sale classification criteria met disposal group expect recognize loss amount may fluctuate based changes value share capital received foreign exchange rates • divestiture 80 percent walmart brazil advent international advent august 2018 recorded pretax loss 48 billion fiscal 2019 • divestiture banking operations walmart chile december 2018 proposed divestiture banking operations walmart canada classified held sale january 31 2019 retail industry operate highly competitive omnichannel retail industry markets serve face strong sales competition discount department drug dollar variety specialty stores warehouse clubs supermarkets well ecommerce businesses many competitors national regional international chains national international omnichannel ecommerce presence also compete number companies attracting retaining quality employees associates along retail companies influenced number factors including limited catastrophic events weather competitive pressures consumer disposable income consumer debt levels buying patterns consumer credit availability cost goods currency exchange rate fluctuations customer preferences deflation inflation fuel energy prices general economic conditions insurance costs interest rates labor costs tax rates imposition tariffs cybersecurity attacks unemployment information factors affect operating results certain risks company investment securities found herein item 1a risk factors cautionary statement regarding forwardlooking statements company performance metrics committed helping customers save money live better everyday low prices supported everyday low costs times adjust business strategies maintain strengthen competitive positions countries operate define financial framework • strong efficient growth • consistent operating discipline • strategic capital allocation execute financial framework believe returns capital improve time strong efficient growth objective prioritizing strong efficient growth means focus productive growth opportunities increasing comparable store club sales accelerating ecommerce sales growth expansion omnichannel initiatives slowing rate growth new stores clubs times make strategic investments focused longterm growth company comparable sales metric indicates performance existing stores clubs measuring change sales stores clubs including ecommerce sales particular period corresponding period previous year retail industry generally reports comparable sales using retail calendar also known 454 calendar consistent retail industry provide comparable sales using retail calendar quarterly earnings releases however discuss comparable sales referring calendar comparable sales calculated using fiscal calendar may result differences compared comparable sales using retail calendar comparable sales well impact fuel fiscal 2019 2018 follows walmart us comparable sales increased 37 21 fiscal 2019 2018 respectively driven ticket traffic growth walmart us ecommerce sales positively contributed approximately 13 07 comparable sales fiscal 2019 fiscal 2018 respectively continue focus seamless omnichannel experience customers sams club comparable sales increased 54 28 fiscal 2019 2018 respectively sams club fiscal 2019 comparable sales driven strong traffic aided transfers sales closed clubs existing clubs fuel sales increases partially offset reduced tobacco sales due decision remove tobacco certain locations fiscal 2019 sams club fiscal 2018 comp sales driven strong traffic fuel sales sams club ecommerce sales positively contributed approximately 09 07 comparable sales fiscal 2019 2018 respectively consistent operating discipline operate discipline managing expenses optimizing efficiency work creating environment sustainable lowest cost serve invest technology process improvements increase productivity manage inventory reduce costs measure operating discipline expense leverage define net sales growing faster rate operating selling general administrative expenses fiscal 2019 operating selling general administrative operating expenses percentage net sales decreased 48 basis points compared period previous fiscal year primary drivers expense leverage strong sales performance conjunction productivity improvements lapping fiscal 2018 charges discussed following paragraph improvements fiscal 2019 partially offset additional investments ecommerce technology well 160 million charge related securities class action lawsuit fiscal 2018 operating expenses percentage net sales increased 32 basis points compared previous fiscal year increase net sales improving expense management positive impact operating expenses percentage net sales leverage expenses result approximately 06 billion charges related sams club closures discontinued real estate projects 400 million related lump sum bonus paid associates 300 million related home office severance legal accrual 283 million related fcpa matter charge 244 million related discontinued real estate projects walmart us decisions exit certain international properties wind first party brazil ecommerce operations strategic capital allocation allocating capital ecommerce technology supply chain store remodels less new store club openings compared prior years allocation aligns initiatives improving customer proposition stores clubs seamless omnichannel experience customers total fiscal 2019 capital expenditures increased slightly compared prior year following table provides additional detail returns execute financial framework believe return capital improve time measure return capital return assets return investment free cash flow metrics also provide returns form share repurchases dividends discussed liquidity capital resources section return assets return investment include return assets roa directly comparable measure based financial statements presented accordance generally accepted accounting principles us gaap return investment roi metrics assess returns assets roi considered nongaap financial measure management believes roi meaningful metric share investors helps investors assess effectively walmart deploying assets trends roi fluctuate time management balances longterm strategic initiatives possible shortterm impacts roa 34 52 fiscal years ended january 31 2019 2018 respectively fiscal 2019 decline roa primarily due decrease consolidated net income resulting 45 billion net loss related sale majority stake walmart brazil also 28 billion net unrealized loss jdcom investment fiscal 2018 decline roa primarily due loss extinguishment debt decrease operating income roi 142 fiscal 2019 flat compared fiscal 2018 define roi adjusted operating income operating income plus interest income depreciation amortization rent expense trailing 12 months divided average invested capital period consider average invested capital average beginning ending total assets plus average accumulated depreciation average amortization less average accounts payable average accrued liabilities period plus rent factor equal rent fiscal year trailing 12 months multiplied factor 8 calculation roi considered nongaap financial measure calculate roi using financial measures exclude include amounts included excluded directly comparable gaap financial measure example exclude impact depreciation amortization reported operating income calculating numerator calculation roi addition include factor 8 rent expense estimates hypothetical capitalization operating leases mentioned consider roa financial measure computed accordance generally accepted accounting principles directly comparable calculation roi differs roa consolidated net income period divided average total assets period roi adjusts operating income exclude certain expense items adds interest income adjusts total assets impact accumulated depreciation amortization accounts payable accrued liabilities incorporates factor rent arrive total invested capital adjustments mentioned believe roi accurately measures deploying key assets meaningful investors roa although roi standard financial measure numerous methods exist calculating companys roi result method used management calculate roi may differ methods used companies calculate roi beginning fiscal 2020 calculation roi change upon adoption asu 201602 leases primarily replace factor 8 rent expense us gaap operating lease assets calculation roa roi along reconciliation roi calculation roa comparable gaap financial measure follows 1 average based addition account balance end current period account balance end prior period dividing 2 free cash flow free cash flow considered nongaap financial measure management believes however free cash flow measures ability generate additional cash business operations important financial measure use evaluating companys financial performance free cash flow considered addition rather substitute consolidated net income measure performance net cash provided operating activities measure liquidity see liquidity capital resources discussions gaap metrics including net cash provided operating activities net cash used investing activities net cash used financing activities define free cash flow net cash provided operating activities period minus payments property equipment made period net cash provided operating activities 278 billion 283 billion 317 billion fiscal 2019 2018 2017 respectively generated free cash flow 174 billion 183 billion 211 billion fiscal 2019 2018 2017 respectively net cash provided operating activities fiscal 2019 declined compared fiscal 2018 primarily due timing vendor payments partially offset lower tax payments mainly resulting us tax reform enacted december 22 2017 tax reform timing tax payments free cash flow fiscal 2019 declined compared fiscal 2018 due reasons decline net cash provided operating activities well 03 billion increased capital expenditures decrease net cash provided operating activities free cash flow fiscal 2018 fiscal 2017 primarily due timing tax payments well lapping previous years improvements working capital management benefit application tax regulations adopted fiscal 2017 walmarts definition free cash flow limited represent residual cash flows available discretionary expenditures due fact measure deduct payments required debt service contractual obligations payments made business acquisitions therefore believe important view free cash flow measure provides supplemental information consolidated statements cash flows although companies report free cash flow numerous methods may exist calculating companys free cash flow result method used management calculate free cash flow may differ methods used companies calculate free cash flow following table sets forth reconciliation free cash flow nongaap financial measure net cash provided operating activities believe gaap financial measure directly comparable free cash flow well information regarding net cash used investing activities net cash used financing activities 1 net cash used investing activities includes payments property equipment also included computation free cash flow results operations consolidated results operations total revenues mostly comprised net sales also include membership income increased 141 billion 28 145 billion 30 fiscal 2019 2018 respectively compared previous fiscal year net sales increased 146 billion 29 144 billion 30 fiscal 2019 2018 respectively compared previous fiscal year fiscal 2019 net sales positively impacted overall positive comparable sales walmart us sams club segments along positive comparable sales majority international markets net sales flipkart acquired third quarter fiscal 2019 additionally fiscal 2019 increase net sales partially offset 45 billion decrease net sales due club closures sams club segment fiscal 2018 31 billion reduction net sales due sale majority stake walmart brazil international segment 07 billion negative impact fluctuations currency exchange rates fiscal 2018 net sales positively impacted overall positive comparable sales impact new store openings sales generated ecommerce acquisitions positive effect factors consolidated net sales fiscal 2018 partially offset reduction net sales 19 billion due divesting yihaodian suburbia businesses 05 billion negative impact fluctuations currency exchange rates gross profit rate decreased 18 26 basis points fiscal 2019 2018 respectively compared previous fiscal year fiscal 2019 decrease due mix effects growing ecommerce business consolidation flipkart planned pricing strategy increased transportation expenses fiscal 2018 decrease primarily due planned pricing strategy mix effects growing ecommerce business membership income decreased fiscal 2019 compared previous fiscal year primarily due prior year recognition 387 million gain sale suburbia international segment membership income relatively flat fiscal 2018 compared previous fiscal year fiscal 2018 included 387 million gain sale suburbia along 47 million gain land sale higher recycling income sustainability efforts higher membership income increased plus member penetration sams club gains offset gains recognized fiscal 2017 fiscal 2019 operating expenses percentage net sales decreased 48 basis points compared period previous fiscal year primary drivers expense leverage strong sales performance conjunction productivity improvements lapping fiscal 2018 charges discussed following paragraph improvements fiscal 2019 partially offset additional investments ecommerce technology well 160 million charge related securities class action lawsuit fiscal 2018 operating expenses percentage net sales increased 32 basis points compared previous fiscal year increase net sales improving expense management positive impact operating expenses percentage net sales leverage expenses result approximately 06 billion charges related sams club closures discontinued real estate projects 400 million related lump sum bonus paid associates 300 million related home office severance legal accrual 283 million related fcpa matter charge 244 million related discontinued real estate projects walmart us decisions exit certain international properties wind first party brazil ecommerce operations losses 84 billion fiscal 2019 primarily result 48 billion pretax loss sale majority stake walmart brazil 35 billion pretax decrease market value investment jdcom fiscal 2018 results included loss extinguishment debt 31 billion effective income tax rate 374 fiscal 2019 304 fiscal 2018 303 fiscal 2017 although us statutory rate lowered due tax cuts jobs act 2017 tax act effective income tax rate increased fiscal 2019 primarily recognized minimal tax benefit related sale majority stake walmart brazil flipkarts results additionally effective income tax rate may also fluctuate result factors including changes assessment certain tax contingencies valuation allowances changes tax law outcomes administrative audits impact discrete items mix size earnings among us operations international operations subject statutory rates beginning fiscal 2019 generally higher us statutory rate reconciliation us statutory rate effective income tax rates fiscal 2019 2018 2017 presented note 9 notes consolidated financial statements result factors discussed reported 72 billion 105 billion consolidated net income fiscal 2019 2018 respectively represents decrease 33 billion 38 billion fiscal 2019 2018 respectively compared previous fiscal year diluted net income per common share attributable walmart eps 226 328 438 fiscal 2019 2018 2017 respectively walmart us segment net sales walmart us segment increased 132 billion 41 106 billion 35 fiscal 2019 2018 respectively compared previous fiscal year increases net sales primarily due increases comparable store sales 37 21 fiscal 2019 2018 respectively driven ticket traffic growth walmart us ecommerce sales positively contributed approximately 13 07 comparable sales fiscal 2019 2018 additionally fiscal 2018 yearoveryear growth retail square feet contributed yearoveryear increase gross profit rate decreased 28 24 basis points fiscal 2019 2018 respectively compared previous fiscal year fiscal 2019 decrease primarily due planned pricing strategy increased transportation expenses mix effects growing ecommerce business fiscal 2018 decrease primarily due planned pricing strategy mix effects growing ecommerce business partially offsetting negative factors fiscal 2018 positive impact savings procuring merchandise operating expenses percentage segment net sales decreased 23 basis points fiscal 2019 relatively flat fiscal 2018 compared previous fiscal year decrease fiscal 2019 primarily due strong sales performance conjunction productivity improvements prior year comparable period including charges related discontinued real estate projects 244 million improvements offset investments ecommerce technology omnichannel initiatives raising starting wage rate beginning fiscal 2019 result factors discussed segment operating income increased 391 million fiscal 2019 relatively flat fiscal 2018 respectively compared periods previous fiscal year walmart international segment net sales walmart international segment increased 28 billion 23 19 billion 17 fiscal 2019 2018 respectively compared previous fiscal year fiscal 2019 increase primarily due positive comparable sales majority markets net sales flipkart acquired third quarter fiscal 2019 increases partially offset 31 billion reduction net sales due sale majority stake walmart brazil 07 billion negative impact fluctuations currency exchange rates continued wind first party brazil ecommerce operations reduction net sales 140 million due divesting suburbia business second quarter fiscal 2018 fiscal 2018 increase net sales due positive comparable sales majority markets impact new stores partially offset reduction net sales 19 billion due divesting yihaodian suburbia businesses 05 billion negative impact fluctuations currency exchange rates gross profit rate decreased 41 28 basis points fiscal 2019 2018 respectively compared previous fiscal year fiscal 2019 decrease due flipkart strategic price investments certain markets fiscal 2018 decrease gross profit rate primarily due strategic price investments certain markets membership income decreased 224 140 fiscal 2019 2018 respectively compared previous fiscal year decrease fiscal 2019 due prior year recognition 387 million gain sale suburbia fiscal 2018 included 387 million gain sale suburbia 47 million gain land sale gains less gains recognized fiscal 2017 included 535 million gain sale yihaodian business 194 million gain sale shopping malls chile operating expenses percentage segment net sales decreased 37 basis points fiscal 2019 flat 2018 compared previous fiscal year decrease operating expenses percentage segment net sales fiscal 2019 primarily due impairment charges previous fiscal year approximately 05 billion included charges decisions exit certain properties wind first party brazil ecommerce operations decrease operating expenses partially offset addition operating expenses flipkart fiscal 2019 fiscal 2018 benefited increase net sales benefit offset restructuring impairment charges certain markets approximately 05 billion including charges decisions exit certain properties wind first party brazil ecommerce operations result factors discussed segment operating income decreased 346 million 508 million fiscal 2019 2018 respectively sams club segment 1 believe excluding fuel information useful investors permits investors understand effect sams club segments fuel sales results operations impacted volatility fuel prices volatility fuel prices may continue impact operating results sams club segment future net sales sams club segment decreased 14 billion 23 fiscal 2019 increased 19 billion 32 fiscal 2018 compared previous fiscal year fiscal 2019 decrease primarily due 45 billion decrease net sales resulting net closure 63 clubs fiscal 2018 well reduced tobacco sales due decision remove tobacco certain locations decreases partially offset increases comparable sales benefited transfers sales closed clubs existing clubs sams club ecommerce sales positively contributed approximately 09 comparable sales fiscal 2019 additional fuel sales 07 billion partially offset decreases net sales fiscal 2019 fiscal 2018 increase net sales primarily due increase comparable sales benefited increase 07 billion fuel sales higher fuel prices sams club ecommerce sales positively contributed approximately 07 comparable sales fiscal 2018 gross profit rate relatively flat fiscal 2019 decreased 44 basis points fiscal 2018 compared previous fiscal year fiscal 2019 gross profit rate benefited lapping impact markdowns liquidate inventory related club closures fiscal 2018 decreased tobacco sales fiscal 2019 lower margins benefit gross profit rate offset higher transportation costs ecommerce shipping costs investments price increased shrink fiscal 2019 fiscal 2018 decrease gross profit rate primarily due impact markdowns liquidate inventory related club closures reclassification certain supply expenses operating expenses cost goods sold increased shrink increased ecommerce shipping costs investment cash rewards membership income increased 26 23 fiscal 2019 2018 respectively compared previous fiscal year fiscal 2019 increase due increase 15 membership income resulting increased plus member penetration gains property sales increases partially offset lower recycling income compared previous fiscal year fiscal 2018 increase membership income primarily due higher recycling income sustainability efforts increase 13 membership income resulting increased plus member penetration operating expenses percentage segment net sales decreased 99 basis points fiscal 2019 increased 83 basis points fiscal 2018 compared previous fiscal year fiscal 2019 decrease operating expenses percentage segment net sales primarily due charge approximately 06 billion prior years comparable period related club closures discontinued real estate projects charge resulted increase operating expenses percentage segment net sales fiscal 2018 result factors discussed segment operating income increased 605 million fiscal 2019 decreased 713 million fiscal 2018 compared previous fiscal year liquidity capital resources liquidity strength stability operations historically supplied us significant source liquidity cash flows provided operating activities supplemented longterm debt shortterm borrowings sufficient fund operations allowing us invest activities support longterm growth operations generally remaining available cash flow used fund dividends common stock share repurchases believe sources liquidity continue adequate fund operations finance global investment expansion activities pay dividends fund share repurchases foreseeable future net cash provided operating activities net cash provided operating activities 278 billion 283 billion 317 billion fiscal 2019 2018 2017 respectively net cash provided operating activities fiscal 2019 declined compared previous fiscal year primarily due timing vendor payments partially offset lower tax payments mainly resulting tax reform timing tax payments decrease net cash provided operating activities fiscal 2018 compared previous fiscal year due timing tax payments well lapping previous years improvements working capital management benefit application tax regulations adopted fiscal 2017 cash equivalents working capital cash equivalents 77 billion 68 billion january 31 2019 2018 respectively working capital deficit 156 billion 189 billion january 31 2019 2018 respectively generally operate working capital deficit due efficient use cash funding operations consistent access capital markets returns provided shareholders form payments cash dividends share repurchases decreased working capital deficit january 31 2019 compared 2018 primarily due higher current assets result consolidation flipkart historically used intercompany financing arrangements make cash available country needed minimum cost possible fiscal 2019 repatriated us 53 billion cash tax cost approximately 40 million january 31 2019 2018 cash equivalents 28 billion 14 billion respectively may freely transferable us due local laws restrictions 28 billion january 31 2019 approximately 12 billion accessed dividends intercompany financing arrangements subject approval flipkart minority shareholders however cash expected utilized fund operations flipkart net cash used investing activities net cash used investing activities 240 billion 91 billion 139 billion fiscal 2019 2018 2017 respectively generally consisted payments business acquisitions expand ecommerce capabilities invest technologies remodel existing stores club add new stores clubs net cash used investing activities increased 150 billion fiscal 2019 compared previous fiscal year increase primarily due 138 billion payment flipkart net cash acquired well payments smaller acquisitions net cash used investing activities decreased 48 billion fiscal 2018 compared previous fiscal year fiscal 2018 included cash received 10 billion sale suburbia mexico fiscal 2017 included acquisition jetcom inc jetcom 24 billion purchase 19 billion shares jdcom jd refer note 13 consolidated financial statements details acquisition jetcom investment jd additionally refer strategic capital allocation section company performance metrics capital expenditure detail fiscal 2019 2018 growth activities fiscal year ending january 31 2020 fiscal 2020 project capital expenditures approximately 110 billion fiscal 2020 expect add approximately 300 new stores walmart international primarily mexico central america china add less 10 stores walmart us net cash used financing activities net cash used financing activities generally consists transactions related shortterm longterm debt financing obligations dividends paid repurchase company stock transactions noncontrolling interest shareholders also classified cash flows financing activities fiscal 2019 net cash used financing activities decreased 173 billion compared period previous fiscal year decrease primarily due 159 billion net proceeds received issuance longterm debt fund portion purchase price flipkart general corporate purposes well decrease share repurchases due suspension repurchases anticipation flipkart announcement fiscal 2018 net cash used financing activities increased 08 billion fiscal 2018 compared period previous fiscal year increase primarily due premiums paid early extinguishment debt discussion financing activities provided major categories shortterm borrowings net cash flows provided shortterm borrowings relatively flat fiscal 2019 increased 41 billion fiscal 2018 compared balance end previous fiscal year generally utilize liquidity provided shortterm borrowings provide funding operations dividend payments share repurchases capital expenditures cash requirements fiscal 2018 additional cash provided shortterm borrowings primarily due timing january 2018 debt extinguishment following table includes additional information related companys shortterm borrowings fiscal 2019 2018 2017 addition shortterm borrowings 150 billion various undrawn committed lines credit us approximately 28 billion various undrawn committed lines credit outside us january 31 2019 provide additional liquidity needed longterm debt following table provides changes longterm debt fiscal 2019 total longterm debt increased 116 billion fiscal 2019 primarily due net proceeds issuance longterm debt fund portion purchase price flipkart general corporate purposes dividends total dividend payments 61 billion 61 billion 62 billion fiscal 2019 2018 2017 respectively board directors approved effective february 19 2019 fiscal 2020 annual dividend 212 per share increase fiscal 2019 annual dividend 208 per share fiscal 2020 annual dividend paid four quarterly installments 053 per share according following record payable dates company share repurchase program time company repurchases shares common stock share repurchase programs authorized companys board directors repurchases made fiscal 2019 made current 20 billion share repurchase program approved october 2017 expiration date restrictions limiting period company make share repurchases january 31 2019 authorization 113 billion share repurchases remained share repurchase program repurchased shares constructively retired returned unissued status regularly review share repurchase activity consider several factors determining execute share repurchases including among things current cash needs capacity leverage cost borrowings results operations market price common stock anticipate majority ongoing share repurchase program funded companys free cash flow following table provides settlement date basis number shares repurchased average price paid per share total amount paid share repurchases fiscal 2019 2018 2017 share repurchases decreased fiscal 2019 relatively flat fiscal 2018 respectively compared previous fiscal year decrease fiscal 2019 due suspension repurchases anticipation announcement flipkart acquisition repurchases company stock returned normalized level latter half fiscal 2019 capital resources believe cash flows operations current cash position access capital markets continue sufficient meet anticipated operating cash needs include funding seasonal buildups merchandise inventories funding capital expenditures acquisitions dividend payments share repurchases strong commercial paper longterm debt ratings enabled continue enable us refinance debt becomes due favorable rates capital markets january 31 2019 ratings assigned commercial paper rated series outstanding longterm debt follows credit rating agencies review ratings periodically therefore credit ratings assigned us agency may subject revision time accordingly able predict whether current credit ratings remain consistent time factors could affect credit ratings include changes operating performance general economic environment conditions retail industry financial position including total debt capitalization changes business strategy downgrade credit ratings credit rating agency could increase future borrowing costs impair ability access capital credit markets terms commercially acceptable us addition downgrade current shortterm credit ratings could impair ability access commercial paper markets flexibility experienced historically potentially requiring us rely heavily expensive types debt financing credit rating agency ratings recommendations buy sell hold commercial paper debt securities rating may subject revision withdrawal time assigning rating organization evaluated independently rating moreover credit rating specific security applies contractual obligations following table sets forth certain information concerning obligations make contractual future payments debt lease agreements certain contingent commitments january 31 2019 1 longterm debt includes fair value derivatives designated fair value hedges 2 capital lease financing obligations represents undiscounted aggregate minimum annual rentals recorded balance sheet present value refer note 11 consolidated financial statements information 3 represents minimum contractual obligation noncancelable leases initial remaining terms greater 12 months january 31 2019 terms sale majority stake walmart brazil agreed indemnify advent certain preclosing tax legal contingencies matters r23 billion adjusted interest based brazilian interbank deposit rate january 31 2019 indemnification liability recorded 08 billion included deferred income taxes companys consolidated balance sheet additionally 150 billion various undrawn committed lines credit us approximately 28 billion various undrawn committed lines credit outside us drawn upon would included current liabilities section companys consolidated balance sheets estimated interest payments based principal amounts expected maturities debt outstanding january 31 2019 assumes interest rates remain current levels variable rate debt purchase obligations include legally binding contracts firm commitments inventory utility purchases well commitments make capital expenditures software acquisition license commitments legally binding service contracts purposes table contractual obligations purchase goods services defined agreements enforceable legally binding specify significant terms including fixed minimum quantities purchased fixed minimum variable price provisions approximate timing transaction contracts specify company purchase portion requirements specific product service supplier include fixed minimum quantity excluded table accordingly purchase orders inventory included table purchase orders represent authorizations purchase rather binding agreements purchase orders based current inventory needs fulfilled suppliers within short time periods also enter contracts outsourced services however obligations contracts significant contracts generally contain clauses allowing cancellation without significant penalty expected timing payment discussed estimated based current information timing payments actual amounts paid may different depending timing receipt goods services changes agreedupon amounts obligations addition amounts shown table 13 billion unrecognized tax benefits considered uncertain tax positions recorded liabilities timing payment associated liabilities uncertain refer note 9 consolidated financial statements additional discussion unrecognized tax benefits balance sheet arrangements january 31 2019 offbalance sheet arrangements reasonably likely current future material effect consolidated financial condition results operations liquidity capital expenditures capital resources matters discuss existing fcpa investigation related matters possible effects matters walmarts business including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein discuss asda equal value claims includes certain existing employment claims united kingdom subsidiary asda stores ltd including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein also discuss national prescription opiate litigation related matters including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein also discuss various legal proceedings related fcpa investigation asda equal value claims national prescription opiate litigation part item 3 herein caption legal proceedings foregoing matters described elsewhere annual report form 10k represent contingent liabilities company may result company incurring material liability upon final resolution summary critical accounting estimates management strives report financial results clear understandable manner although cases accounting disclosure rules complex require us use technical terminology preparing companys consolidated financial statements follow accounting principles generally accepted us principles require us make certain estimates apply judgments affect financial position results operations reflected financial statements judgments estimates based past events expectations future outcomes actual results may differ estimates management continually reviews accounting policies applied reported disclosed financial statements following summary critical accounting estimates applied preparation financial statements inventories value inventories lower cost market determined primarily retail inventory method accounting using lastin firstout lifo method walmart us segments inventories inventory sams club segment valued using weightedaverage cost lifo method necessary record lifo provision estimated annual effect inflation estimates adjusted actual results determined yearend lifo provision calculated based inventory levels markup rates internally generated retail price indices measure sensitivity 1 increase retail price indices would resulted decrease carrying value inventory january 31 2019 2018 inventories valued lifo approximated inventories valued fifo impairment assets evaluate longlived assets indicators impairment whenever events changes circumstances indicate carrying amounts may recoverable managements judgments regarding existence impairment indicators based market conditions financial performance evaluation longlived assets performed lowest level identifiable cash flows generally individual store level variability factors depends number conditions including uncertainty future events changes demographics thus accounting estimates may change period factors could cause management conclude indicators impairment exist require impairment tests performed could result management determining value longlived assets impaired resulting writedown related longlived assets fiscal 2019 included pretax loss 48 billion related sale majority stake walmart brazil included full impairment relatedassets material impairment charges fiscal 2019 measure sensitivity fiscal 2019 impairment would change materially 10 decrease undiscounted cash flows stores clubs indicators impairment fiscal 2018 although impairment charges 14 billion charges primarily related restructuring activities described note 14 well discontinued real estate projects us decisions exit certain international properties impairment charges related restructuring activities decisions exit properties fiscal 2019 2018 material business combinations goodwill acquired intangible assets account business combinations using acquisition method accounting requires control obtained assets acquired liabilities assumed including amounts attributable noncontrolling interests recorded respective fair values date acquisition determination fair values identifiable assets liabilities requires estimates use valuation techniques market value readily available intangible assets acquired business combination typically use income method significant estimates valuing certain intangible assets include limited amount timing future cash flows growth rates discount rates useful lives excess purchase price fair values identifiable assets liabilities recorded goodwill assigned reporting unit consolidates acquisition components within reportable segment aggregated deemed single reporting unit components similar economic characteristics january 31 2019 reporting units consisted walmart us walmart international sams club goodwill indefinitelived acquired intangible assets amortized evaluated impairment annually whenever events changes circumstances indicate value certain asset may impaired generally evaluation begins qualitative assessment determine whether quantitative impairment test necessary determine performing assessment based qualitative factors fair value reporting unit likely less carrying amount fair value reporting unit substantially excess carrying amount cannot assured quantitative impairment test would performed quantitative test impairment requires management make judgments relating future cash flows growth rates economic market conditions evaluations based determining fair value reporting unit asset using valuation method discounted cash flow relative marketbased approach historically reporting units indefinitelived acquired intangible assets generated sufficient returns recover cost goodwill indefinitelived acquired intangible assets nature factors used tests different conditions occur future periods future operating results could materially impacted approximately 300 million certain acquired indefinitelived intangible assets fair value approximated carrying value deterioration fair value may result impairment charge income taxes income taxes significant effect net earnings subject income taxes us numerous foreign jurisdictions accordingly determination provision income taxes requires significant judgment use estimates interpretation application complex tax laws effective income tax rate affected many factors including changes assessment certain tax contingencies increases decreases valuation allowances changes tax law outcomes administrative audits impact discrete items mix earnings among us international operations statutory rates generally lower us statutory rate may fluctuate result tax returns routinely audited settlements issues raised audits sometimes affect tax provisions benefits uncertain tax positions recorded financial statements determining likely probability uncertain tax positions withstand challenge taxing authorities facts circumstances change reassess probabilities record changes financial statements appropriate account uncertain tax positions determining minimum recognition threshold tax position required meet recognized financial statements determination requires use significant judgment evaluating tax positions assessing timing amounts deductible taxable items deferred tax assets represent amounts available reduce income taxes payable taxable income future years assets arise temporary differences financial reporting tax bases assets liabilities well net operating loss tax credit carryforwards deferred tax assets evaluated future realization reduced valuation allowance extent portion likely realized many factors considered assessing whether likely deferred tax assets realized including recent cumulative earnings expectations future taxable income carryforward periods relevant quantitative qualitative factors recoverability deferred tax assets evaluated assessing adequacy future expected taxable income sources including reversal taxable temporary differences forecasted operating earnings available tax planning strategies evaluation relies heavily estimates december 22 2017 tax cuts jobs act 2017 tax act enacted contains significant changes us income tax law effective beginning january 2018 tax act reduced us statutory tax rate 35 21 created new taxes foreignsourced earnings relatedparty payments discussed note 9 consolidated financial statements completed accounting tax effects tax act fiscal 2019 guidance issued us treasury department irs standardsetting bodies resulting changes estimates treated accordance relevant accounting guidance item 7aitem 7 managements discussion analysis financial condition results operations overview discussion presents results fiscal years ended january 31 2020 fiscal 2020 january 31 2019 fiscal 2019 january 31 2018 fiscal 2018 read conjunction consolidated financial statements accompanying notes intend discussion provide reader information assist understanding financial statements changes certain key items financial statements period primary factors accounted changes also discuss certain performance metrics management uses assess companys performance additionally discussion provides information financial results three segments provide better understanding segments results operations affect financial condition results operations company whole throughout item 7 discuss segment operating income comparable store club sales measures management measures results companys segments using segments operating income including certain corporate overhead allocations well measures time revise measurement segments operating income measures determined information regularly reviewed chief operating decision maker management also measures results comparable store club sales comparable sales metric indicates performance existing stores clubs measuring change sales stores clubs including ecommerce sales particular period corresponding period previous year walmarts definition comparable sales includes sales stores clubs open previous 12 months including remodels relocations expansions conversions well ecommerce sales measure ecommerce sales impact including sales initiated online mobile applications including omnichannel transactions fulfilled stores clubs sales store changed format excluded comparable sales conversion store accompanied relocation expansion results change stores retail square feet five percent additionally sales related acquisitions excluded acquisitions owned 12 months comparable sales also referred samestore sales others within retail industry method calculating comparable sales varies across retail industry result calculation comparable sales necessarily comparable similarly titled measures reported companies beginning first quarter fiscal 2020 updated definition previously referred traffic component along ticket comparable sales traffic referred transactions measures percentage change number sales transactions comparable stores well comparable ecommerce activity discussing operating results term currency exchange rates refers currency exchange rates use convert operating results countries functional currency us dollar us dollars countries experiencing hyperinflation calculate effect changes currency exchange rates difference current period activity translated using current period’s currency exchange rates comparable prior year period’s currency exchange rates additionally currency exchange rate fluctuations calculated nonusd acquisitions owned 12 months throughout discussion refer results calculation impact currency exchange rate fluctuations volatility currency exchange rates may impact results including net sales operating income company walmart international segment future business seasonal certain extent due calendar events national religious holidays well weather patterns generally highest sales volume operating income occurred fiscal quarter ending january 31 taken strategic actions strengthen portfolio longterm including • acquisition 81 percent outstanding shares 77 percent diluted shares flipkart private limited flipkart august 2018 negatively impacted fiscal 2020 2019 net income refer note 12 additional information transaction • divestiture 80 percent walmart brazil advent international advent august 2018 recorded pretax loss 48 billion fiscal 2019 refer note 12 additional information transaction • divestiture banking operations walmart chile walmart canada december 2018 april 2019 respectively • asda made 10 billion cash contribution asda group pension scheme plan october 2019 enabled plan purchase bulk insurance annuity contract benefit plan participants anticipation plan participant issued individual annuity contract issuer individual annuity insurance contracts solely responsible paying participant’s benefits full release plan asda future obligations plan participants issued individual annuity contracts currently estimate recognize total pretax charge approximately 22 billion related pension settlement late fiscal 2021 early fiscal 2022 refer note 11 additional information transaction operate highly competitive omnichannel retail industry markets serve face strong sales competition discount department drug dollar variety specialty stores warehouse clubs supermarkets well ecommerce businesses many competitors national regional international chains national international omnichannel ecommerce presence compete number companies attracting retaining quality employees associates along retail companies influenced number factors including limited catastrophic events weather global health epidemics competitive pressures consumer disposable income consumer debt levels buying patterns consumer credit availability cost goods currency exchange rate fluctuations customer preferences deflation inflation fuel energy prices general economic conditions insurance costs interest rates labor costs tax rates imposition tariffs cybersecurity attacks unemployment additionally monitoring potential impact recent coronavirus outbreak global business financial impact unknown time information factors affect operating results certain risks company investment securities found herein item 1a risk factors cautionary statement regarding forwardlooking statements company performance metrics committed helping customers save money live better everyday low prices supported everyday low costs times adjust business strategies maintain strengthen competitive positions countries operate define financial framework • strong efficient growth • consistent operating discipline • strategic capital allocation execute financial framework believe returns capital improve time strong efficient growth objective prioritizing strong efficient growth means focus productive growth opportunities increasing comparable store club sales accelerating ecommerce sales growth expanding omnichannel initiatives slowing rate growth new stores clubs times make strategic investments focused longterm growth company comparable sales metric indicates performance existing stores clubs measuring change sales stores clubs including ecommerce sales particular period corresponding period previous year retail industry generally reports comparable sales using retail calendar also known 454 calendar consistent retail industry provide comparable sales using retail calendar quarterly earnings releases however discuss comparable sales referring calendar comparable sales calculated using fiscal calendar may result differences compared comparable sales using retail calendar comparable sales well impact fuel fiscal 2020 2019 follows walmart us comparable sales increased 29 37 fiscal 2020 2019 respectively driven ticket transactions growth walmart us ecommerce sales positively contributed approximately 17 13 comparable sales fiscal 2020 2019 respectively continue focus seamless omnichannel experience customers sams club comparable sales increased 16 54 fiscal 2020 2019 respectively sams club comparable sales fiscal 2020 2019 benefited growth transactions higher fuel sales partially offset lower ticket due decision remove tobacco certain club locations sams club fiscal 2019 comparable sales aided transfers sales closed clubs existing clubs sams club ecommerce sales positively contributed approximately 15 09 comparable sales fiscal 2020 2019 respectively consistent operating discipline operate discipline managing expenses optimizing efficiency work creating environment sustainable lowest cost serve invest technology process improvements increase productivity manage inventory reduce costs measure operating discipline expense leverage define net sales growing faster rate operating selling general administrative expenses fiscal 2020 operating selling general administrative operating expenses percentage net sales decreased 8 basis points compared previous fiscal year due focus expense management combined growth comparable store sales improvements partially offset 09 billion business restructuring charges consisting primarily noncash impairment charges certain trade names acquired developed technology business restructuring charges due strategic decisions resulted write certain assets walmart us walmart international segments fiscal 2019 operating expenses percentage net sales decreased 48 basis points compared previous fiscal year primary drivers expense leverage strong sales performance conjunction productivity improvements lapping certain fiscal 2018 charges improvements fiscal 2019 partially offset additional investments ecommerce technology well 160 million charge related securities class action lawsuit strategic capital allocation strategy includes improving customerfacing initiatives stores clubs creating seamless omnichannel experience customers allocating capital ecommerce technology supply chain store remodels less new store club openings compared prior years total fiscal 2020 capital expenditures increased slightly compared prior year following table provides additional detail returns execute financial framework believe return capital improve time measure return capital return assets return investment free cash flow metrics also provide returns form share repurchases dividends discussed liquidity capital resources section return assets return investment include return assets roa directly comparable measure based financial statements presented accordance generally accepted accounting principles us gaap return investment roi metrics assess returns assets roi considered nongaap financial measure management believes roi meaningful metric share investors helps investors assess effectively walmart deploying assets trends roi fluctuate time management balances longterm strategic initiatives possible shortterm impacts roa 67 34 fiscal 2020 2019 respectively increase roa primarily due increase consolidated net income primarily due change fair value investment jdcom lapping 45 billion net loss recorded fiscal 2019 related sale majority stake walmart brazil partially offset dilution operating income related flipkart roi 134 142 fiscal 2020 2019 respectively decrease roi due decrease operating income primarily result dilution flipkart well business restructuring charges recorded fiscal 2020 denominator remained relatively flat increase average total assets due acquisition flipkart offset decrease average invested capital resulting removal eight times rent factor upon adoption asu 201602 leases asu 201602 since operating lease right use assets included total assets define roi operating income plus interest income depreciation amortization rent expense trailing 12 months divided average invested capital period consider average invested capital average beginning ending total assets plus average accumulated depreciation average amortization less average accounts payable average accrued liabilities period upon adoption asu 201602 rent trailing 12 months multiplied factor 8 longer included calculation roi prospective basis operating lease assets capitalized fiscal 2020 lease related assets associated accumulated amortization included denominator carrying amount current balance sheet date rather averaged longer directly comparable prior year calculation included rent trailing 12 months multiplied factor 8 twopoint average used leased assets beginning fiscal 2021 one full year date adoption new lease standard beginning prospectively fiscal 2020 rent expense numerator excludes shortterm variable lease costs included operating lease right use asset balance prior adoption asu 201602 defined roi operating income plus interest income depreciation amortization rent expense trailing 12 months divided average invested capital period considered average invested capital average beginning ending total assets plus average accumulated depreciation average amortization less average accounts payable average accrued liabilities period plus rent factor equal rent fiscal year trailing 12 months multiplied factor 8 estimated hypothetical capitalization operating leases new lease standard adopted modified retrospective approach february 1 2019 calculation roi fiscal 2019 revised calculation roi considered nongaap financial measure calculate roi using financial measures exclude include amounts included excluded directly comparable gaap financial measure example exclude impact depreciation amortization reported operating income calculating numerator calculation roi mentioned consider roa financial measure computed accordance generally accepted accounting principles directly comparable calculation roi differs roa consolidated net income period divided average total assets period roi adjusts operating income exclude certain expense items adds interest income adjusts total assets impact accumulated depreciation amortization accounts payable accrued liabilities arrive total invested capital adjustments mentioned believe roi accurately measures deploying key assets meaningful investors roa although roi standard financial measure numerous methods exist calculating companys roi result method used management calculate roi may differ methods used companies calculate roi calculation roa roi along reconciliation roi calculation roa comparable gaap financial measure follows 1 average based addition account balance end current period account balance end corresponding prior period dividing 2 average total assets used roa includes average impact adoption asu 201602 2 fiscal 2020 result adopting asu 201602 average total assets based average total assets without leased assets net plus leased assets net january 31 2020 average accumulated depreciation amortization based average accumulated depreciation amortization without leased assets plus accumulated amortization leased assets january 31 2020 np provided free cash flow free cash flow considered nongaap financial measure management believes however free cash flow measures ability generate additional cash business operations important financial measure use evaluating companys financial performance free cash flow considered addition rather substitute consolidated net income measure performance net cash provided operating activities measure liquidity see liquidity capital resources discussions gaap metrics including net cash provided operating activities net cash used investing activities net cash used financing activities define free cash flow net cash provided operating activities period minus payments property equipment made period net cash provided operating activities 253 billion 278 billion 283 billion fiscal 2020 2019 2018 respectively generated free cash flow 146 billion 174 billion 183 billion fiscal 2020 2019 2018 respectively net cash provided operating activities fiscal 2020 declined compared fiscal 2019 primarily due contribution asda pension plan anticipation future settlement inclusion full year flipkart operations timing vendor payments free cash flow fiscal 2020 declined compared fiscal 2019 due reasons decline net cash provided operating activities well 04 billion increased capital expenditures net cash provided operating activities fiscal 2019 declined compared fiscal 2018 primarily due timing vendor payments partially offset lower tax payments mainly resulting tax act timing tax payments free cash flow fiscal 2019 declined compared fiscal 2018 due reasons decline net cash provided operating activities well 03 billion increased capital expenditures walmarts definition free cash flow limited represent residual cash flows available discretionary expenditures due fact measure deduct payments required debt service contractual obligations payments made business acquisitions therefore believe important view free cash flow measure provides supplemental information consolidated statements cash flows although companies report free cash flow numerous methods may exist calculating companys free cash flow result method used management calculate free cash flow may differ methods used companies calculate free cash flow following table sets forth reconciliation free cash flow nongaap financial measure net cash provided operating activities believe gaap financial measure directly comparable free cash flow well information regarding net cash used investing activities net cash used financing activities 1 net cash used investing activities includes payments property equipment also included computation free cash flow results operations consolidated results operations 1 unit counts associated retail square feet presented stores clubs generally open period end permanently closed locations included total revenues includes net sales membership income increased 96 billion 19 141 billion 28 fiscal 2020 2019 respectively compared previous fiscal year increases revenues due increases net sales increased 96 billion 19 146 billion 29 fiscal 2020 2019 respectively compared previous fiscal year fiscal 2020 net sales positively impacted overall positive comparable sales walmart us sams club segments along addition net sales flipkart acquired august 2018 positive comparable sales majority international markets increases partially offset 41 billion negative impact fluctuations currency exchange rates fiscal 2020 sale majority stake walmart brazil august 2018 fiscal 2019 net sales positively impacted overall positive comparable sales walmart us sams club segments along positive comparable sales majority international markets net sales flipkart acquired third quarter fiscal 2019 additionally fiscal 2019 increase net sales partially offset 45 billion decrease net sales due club closures sams club segment fiscal 2018 31 billion reduction net sales due sale majority stake walmart brazil international segment 07 billion negative impact fluctuations currency exchange rates gross profit rate decreased 40 18 basis points fiscal 2020 2019 respectively compared previous fiscal year fiscal 2020 decreases primarily due price investment walmart us segment addition flipkart walmart international segment partially offset favorable merchandise mix including strength private brands less pressure transportation costs walmart us segment fiscal 2019 decrease due mix effects growing ecommerce business acquisition flipkart planned pricing strategy increased transportation expenses fiscal 2020 operating expenses percentage net sales decreased 8 basis points compared period previous fiscal year due focus expense management combined growth comparable store sales improvements partially offset 09 billion business restructuring charges consisting primarily noncash impairment charges certain trade names acquired developed technology business restructuring charges due strategic decisions resulted write certain assets walmart us walmart international segments fiscal 2019 operating expenses percentage net sales decreased 48 basis points compared previous fiscal year primary drivers expense leverage strong sales performance conjunction productivity improvements lapping approximately 18 billion certain charges fiscal 2018 improvements fiscal 2019 partially offset additional investments ecommerce technology well 02 billion charge related securities class action lawsuit gains losses consisted gain 20 billion fiscal 2020 loss 84 billion fiscal 2019 gain fiscal 2020 primarily result 19 billion increase market value investment jdcom loss fiscal 2019 primarily result 48 billion pretax loss sale majority stake walmart brazil 35 billion decrease market value investment jdcom fiscal 2018 results included loss extinguishment debt 31 billion effective income tax rate 244 fiscal 2020 374 fiscal 2019 304 fiscal 2018 decrease effective tax rate fiscal 2020 primarily due fiscal 2019 loss sale majority stake walmart brazil increased comparative periods effective tax rate provided minimal realizable tax benefit increase effective tax rate fiscal 2019 primarily due aforementioned loss sale majority stake walmart brazil flipkarts results additionally effective income tax rate may also fluctuate result various factors including changes assessment certain tax contingencies valuation allowances changes tax law outcomes administrative audits impact discrete items mix size earnings among us operations international operations subject statutory rates beginning fiscal 2019 generally higher us statutory rate reconciliation us statutory rate effective income tax rates fiscal 2020 2019 2018 presented note 9 notes consolidated financial statements result factors discussed reported 152 billion 72 billion consolidated net income fiscal 2020 2019 respectively represents increase 80 billion decrease 33 billion fiscal 2020 2019 respectively compared previous fiscal year diluted net income per common share attributable walmart eps 519 226 328 fiscal 2020 2019 2018 respectively walmart us segment net sales walmart us segment increased 93 billion 28 132 billion 41 fiscal 2020 2019 respectively compared previous fiscal year increases net sales primarily due increases comparable store sales 29 37 fiscal 2020 2019 respectively driven ticket transaction growth walmart us ecommerce sales positively contributed approximately 17 13 comparable sales fiscal 2020 2019 gross profit rate decreased 14 28 basis points fiscal 2020 2019 respectively compared previous fiscal year fiscal 2020 decreases primarily result continued price investments partially offset better merchandise mix including strength private brands less pressure transportation costs fiscal 2019 decrease primarily due planned pricing strategy increased transportation expenses mix effects growing ecommerce business operating expenses percentage segment net sales decreased 4 basis points fiscal 2020 decreased 23 basis points fiscal 2019 compared previous fiscal year leveraged operating expenses fiscal 2020 result strong sales productivity improvements mostly offset business restructuring charges 05 billion consisting primarily noncash impairment charges certain trade names acquired developed technology business restructuring charges due decisions resulted write certain ecommerce assets decrease fiscal 2019 primarily due strong sales performance conjunction productivity improvements prior year comparable period including charges related discontinued real estate projects 02 billion improvements offset investments ecommerce technology omnichannel initiatives raising starting wage rate beginning fiscal 2019 result factors discussed segment operating income decreased 6 million increased 391 million fiscal 2020 2019 respectively compared periods previous fiscal year walmart international segment net sales walmart international segment decreased 07 billion 06 increased 28 billion 23 fiscal 2020 2019 respectively compared previous fiscal year fiscal 2020 decrease primarily due negative fluctuations currency exchange rates 41 billion well reduction sales due sale majority stake walmart brazil august 2018 offset full year net sales flipkart positive comparable sales growth majority markets fiscal 2019 increase primarily due positive comparable sales majority markets net sales flipkart acquired third quarter fiscal 2019 increases partially offset 31 billion reduction net sales due sale majority stake walmart brazil 07 billion negative impact fluctuations currency exchange rates continued wind first party brazil ecommerce operations reduction net sales 140 million due divesting suburbia business second quarter fiscal 2018 gross profit rate decreased 136 41 basis points fiscal 2020 2019 respectively compared previous fiscal year fiscal 2020 decrease primarily due flipkart well change merchandise mix fiscal 2019 decrease due flipkart strategic price investments certain markets membership income decreased 11 224 fiscal 2020 2019 respectively compared previous fiscal year decrease fiscal 2020 primarily due currency fiscal 2019 decreased due prior year recognition 387 million gain sale suburbia operating expenses percentage segment net sales decreased 13 basis points fiscal 2020 37 basis points 2019 compared previous fiscal year decrease operating expenses percentage segment net sales fiscal 2020 primarily due positive comparable sales majority markets cost discipline across multiple markets partially offset 04 billion impairment charges due primarily writeoff carrying value one flipkarts two fashion trade names jabongcom result strategic decision focus efforts single fashion platform order simplify business customer proposition fiscal 2019 decreased primarily due impairment charges previous fiscal year approximately 05 billion included charges decisions exit certain properties wind first party brazil ecommerce operations decrease operating expenses partially offset addition operating expenses flipkart fiscal 2019 result factors discussed segment operating income decreased 15 billion 03 billion fiscal 2020 2019 respectively sams club segment 1 believe excluding fuel information useful investors permits investors understand effect sams club segments fuel sales results operations impacted volatility fuel prices volatility fuel prices may continue impact operating results sams club segment future management uses information better measure underlying operating results segment net sales sams club segment increased 10 billion 16 fiscal 2020 decreased 14 billion 23 fiscal 2019 compared previous fiscal year fiscal 2020 increases primarily due comparable sales including fuel 16 comparable sales benefited growth transactions higher fuel sales partially offset lower ticket due decision remove tobacco certain club locations sams club ecommerce sales positively contributed approximately 15 comparable sales fiscal 2019 decrease primarily due 45 billion decrease net sales resulting net closure 63 clubs fiscal 2018 well reduced tobacco sales due decision remove tobacco certain locations decreases partially offset increases comparable sales benefited transfers sales closed clubs existing clubs sams club ecommerce sales positively contributed approximately 09 comparable sales fiscal 2019 additional fuel sales 07 billion partially offset decreases net sales fiscal 2019 gross profit rate decreased 11 basis points fiscal 2020 remained relatively flat fiscal 2019 compared previous fiscal year gross profit rate decreased due investments price higher ecommerce fulfillment costs partially offset reduced tobacco sales lower margins fiscal 2019 gross profit rate benefited lapping impact markdowns liquidate inventory related club closures fiscal 2018 decreased tobacco sales fiscal 2019 benefit gross profit rate offset higher transportation costs ecommerce shipping costs investments price increased shrink fiscal 2019 membership income increased 47 26 fiscal 2020 2019 respectively compared previous fiscal year fiscal 2020 increase primarily due growth total members benefited higher overall renewal rates higher plus member penetration along gains property sales income fiscal 2019 increase due increase 15 membership income resulting increased plus member penetration gains property sales increases partially offset lower recycling income compared previous fiscal year operating expenses percentage segment net sales decreased 19 99 basis points fiscal 2020 2019 respectively compared previous fiscal year fiscal 2020 decrease primarily result lower laborrelated costs charge approximately 50 million related lease exit costs prior comparable period benefits partially offset reduction sales tobacco higher level technology investment fiscal 2019 decrease operating expenses percentage segment net sales primarily due charge approximately 06 billion prior years comparable period related club closures discontinued real estate projects result factors discussed segment operating income increased 122 million fiscal 2020 increased 605 million fiscal 2019 compared previous fiscal year liquidity capital resources liquidity strength stability operations historically supplied us significant source liquidity cash flows provided operating activities supplemented longterm debt shortterm borrowings sufficient fund operations allowing us invest activities support longterm growth operations generally remaining available cash flow used fund dividends common stock share repurchases believe sources liquidity continue adequate fund operations finance global investment expansion activities pay dividends fund share repurchases foreseeable future net cash provided operating activities net cash provided operating activities 253 billion 278 billion 283 billion fiscal 2020 2019 2018 respectively net cash provided operating activities fiscal 2020 decreased compared previous fiscal year primarily due contribution asda pension plan anticipation future settlement inclusion full year flipkart operations timing vendor payments decrease net cash provided operating activities fiscal 2019 compared previous fiscal year primarily due timing vendor payments partially offset lower tax payments mainly resulting tax reform timing tax payments cash equivalents working capital deficit cash equivalents 95 billion 77 billion january 31 2020 2019 respectively working capital deficit defined total current assets less total current liabilities 160 billion 156 billion january 31 2020 2019 respectively generally operate working capital deficit due efficient use cash funding operations consistent access capital markets returns provided shareholders form payments cash dividends share repurchases use intercompany financing arrangements effort ensure cash made available country needed minimum cost possible additionally timetotime repatriate earnings related cash jurisdictions outside us historically us taxes due upon repatriation foreign earnings due enactment us tax reform repatriations foreign earnings generally free us federal tax may incur taxes withholding state taxes awaiting anticipated technical guidance irs us treasury department expect current local laws existing limitations potential taxes anticipated future repatriations cash amounts held outside us material effect overall liquidity financial condition results operations january 31 2020 2019 cash equivalents 23 billion 28 billion respectively may freely transferable us due local laws restrictions 23 billion january 31 2020 approximately 06 billion accessed dividends intercompany financing arrangements subject approval flipkart minority shareholders however cash expected utilized fund operations flipkart net cash used investing activities net cash used investing activities 91 billion 240 billion 91 billion fiscal 2020 2019 2018 respectively generally consisted payments business acquisitions expand ecommerce capabilities invest technologies remodel existing stores club add new stores clubs net cash used investing activities decreased 149 billion fiscal 2020 compared previous fiscal year primarily result 138 billion payment acquisition flipkart net cash acquired well payments smaller acquisitions fiscal 2019 net cash used investing activities increased 150 billion fiscal 2019 compared previous fiscal year primarily due previously mentioned fiscal 2019 acquisitions additionally refer strategic capital allocation section company performance metrics capital expenditure detail fiscal 2020 2019 growth activities fiscal year ending january 31 2021 fiscal 2021 project capital expenditures approximately 11 billion focus store remodels customer initiatives ecommerce technology supply chain also expect add approximately 250 new stores walmart international primarily mexico china net cash used financing activities net cash used financing activities generally consists transactions related shortterm longterm debt financing obligations dividends paid repurchase company stock transactions noncontrolling interest shareholders also classified cash flows financing activities fiscal 2020 net cash used financing activities increased 118 billion compared period previous fiscal year increase primarily due 159 billion net proceeds received prior year issuance longterm debt fund portion purchase price flipkart partially offset 55 billion additional longterm debt current year fund general business operations fiscal 2019 net cash used financing activities decreased 173 billion fiscal 2019 compared period previous fiscal year decrease primarily due 159 billion net proceeds received issuance longterm debt fund portion purchase price flipkart general corporate purposes well decrease share repurchases due suspension repurchases anticipation flipkart announcement shortterm borrowings net cash flows used shortterm borrowings increased fiscal 2020 relatively flat fiscal 2019 generally utilize liquidity provided shortterm borrowings provide funding operations dividend payments share repurchases capital expenditures cash requirements fiscal 2020 additional cash used shortterm borrowings primarily due longterm debt issuances used pay shortterm borrowings following table includes additional information related companys shortterm borrowings fiscal 2020 2019 2018 addition shortterm borrowings 150 billion various undrawn committed lines credit us approximately 29 billion various undrawn committed lines credit outside us january 31 2020 provide additional liquidity needed longterm debt following table provides changes longterm debt fiscal 2020 total longterm debt increased 37 billion fiscal 2020 primarily due net proceeds issuance longterm debt april 2019 september 2019 fund general business operations partially offset repayments longterm debt dividends total dividend payments 60 billion 61 billion 61 billion fiscal 2020 2019 2018 respectively board directors approved effective february 18 2020 fiscal 2021 annual dividend 216 per share increase fiscal 2020 annual dividend 212 per share fiscal 2021 annual dividend paid four quarterly installments 054 per share according following record payable dates company share repurchase program time company repurchases shares common stock share repurchase programs authorized companys board directors repurchases made fiscal 2020 made current 20 billion share repurchase program approved october 2017 expiration date restrictions limiting period company make share repurchases january 31 2020 authorization 57 billion share repurchases remained share repurchase program repurchased shares constructively retired returned unissued status regularly review share repurchase activity consider several factors determining execute share repurchases including among things current cash needs capacity leverage cost borrowings results operations market price common stock anticipate majority ongoing share repurchase program funded companys free cash flow following table provides settlement date basis number shares repurchased average price paid per share total amount paid share repurchases fiscal 2020 2019 2018 capital resources believe cash flows operations current cash position access capital markets continue sufficient meet anticipated operating cash needs include funding seasonal buildups merchandise inventories funding capital expenditures acquisitions dividend payments share repurchases strong commercial paper longterm debt ratings enabled continue enable us refinance debt becomes due favorable rates capital markets january 31 2020 ratings assigned commercial paper rated series outstanding longterm debt follows credit rating agencies review ratings periodically therefore credit ratings assigned us agency may subject revision time accordingly able predict whether current credit ratings remain consistent time factors could affect credit ratings include changes operating performance general economic environment conditions retail industry financial position including total debt capitalization changes business strategy downgrade credit ratings credit rating agency could increase future borrowing costs impair ability access capital credit markets terms commercially acceptable us addition downgrade current shortterm credit ratings could impair ability access commercial paper markets flexibility experienced historically potentially requiring us rely heavily expensive types debt financing credit rating agency ratings recommendations buy sell hold commercial paper debt securities rating may subject revision withdrawal time assigning rating organization evaluated independently rating moreover credit rating specific security applies contractual obligations following table sets forth certain information concerning obligations make contractual future payments debt lease agreements certain contingent commitments january 31 2020 1 longterm debt includes fair value derivatives designated fair value hedges 2 represents contractual obligations make future payments noncancelable operating leases finance lease agreements recorded balance sheet present value refer note 7 consolidated financial statements additional information regarding operating finance leases 3 finance lease obligations includes contractual obligations financing obligations 14 billion terms sale majority stake walmart brazil agreed indemnify advent certain preclosing tax legal contingencies matters r23 billion adjusted interest based brazilian interbank deposit rate january 31 2020 indemnification liability recorded 07 billion included deferred income taxes companys consolidated balance sheet additionally 150 billion various undrawn committed lines credit us approximately 29 billion various undrawn committed lines credit outside us drawn upon would included current liabilities section companys consolidated balance sheets estimated interest payments based principal amounts expected maturities debt outstanding january 31 2020 assumes interest rates remain current levels variable rate debt purchase obligations include legally binding contracts firm commitments inventory utility purchases well commitments make capital expenditures software acquisition license commitments legally binding service contracts purposes table contractual obligations purchase goods services defined agreements enforceable legally binding specify significant terms including fixed minimum quantities purchased fixed minimum variable price provisions approximate timing transaction contracts specify company purchase portion requirements specific product service supplier include fixed minimum quantity excluded table accordingly purchase orders inventory included table purchase orders represent authorizations purchase rather binding agreements purchase orders based current inventory needs fulfilled suppliers within short time periods also enter contracts outsourced services however obligations contracts significant contracts generally contain clauses allowing cancellation without significant penalty expected timing payment discussed estimated based current information timing payments actual amounts paid may different depending timing receipt goods services changes agreedupon amounts obligations addition amounts shown table 18 billion unrecognized tax benefits considered uncertain tax positions recorded liabilities timing payment associated liabilities uncertain refer note 9 consolidated financial statements additional discussion unrecognized tax benefits balance sheet arrangements january 31 2020 offbalance sheet arrangements reasonably likely current future material effect consolidated financial condition results operations liquidity capital expenditures capital resources matters discuss recently resolved fcpa investigation note 10 consolidated financial statements captioned contingencies appears elsewhere herein discuss asda equal value claims includes certain existing employment claims united kingdom subsidiary asda stores ltd including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein also discuss national prescription opiate litigation related matters including certain risks arising therefrom part item 1a form 10k caption risk factors subcaption legal proceedings note 10 consolidated financial statements captioned contingencies appears elsewhere herein also discuss various legal proceedings related asda equal value claims national prescription opiate litigation part item 3 herein caption legal proceedings foregoing matters described elsewhere annual report form 10k represent contingencies company may result company incurring material liability upon final resolution summary critical accounting estimates management strives report financial results clear understandable manner although cases accounting disclosure rules complex require us use technical terminology preparing companys consolidated financial statements follow accounting principles generally accepted us principles require us make certain estimates apply judgments affect financial position results operations reflected financial statements judgments estimates based past events expectations future outcomes actual results may differ estimates management continually reviews accounting policies applied reported disclosed financial statements following summary critical accounting estimates applied preparation financial statements inventories value inventories lower cost market determined primarily retail inventory method accounting using lastin firstout lifo method walmart us segments inventories inventory sams club segment valued using weightedaverage cost lifo method necessary record lifo provision estimated annual effect inflation estimates adjusted actual results determined yearend lifo provision calculated based inventory levels markup rates internally generated retail price indices measure sensitivity 1 increase retail price indices would resulted decrease carrying value inventory january 31 2020 2019 inventories valued lifo approximated inventories valued fifo impairment assets evaluate longlived assets indicators impairment whenever events changes circumstances indicate carrying amounts may recoverable managements judgments regarding existence impairment indicators based market conditions financial performance evaluation longlived assets performed lowest level identifiable cash flows generally individual store level variability factors depends number conditions including uncertainty future events changes demographics thus accounting estimates may change period factors could cause management conclude indicators impairment exist require impairment tests performed could result management determining value longlived assets impaired resulting writedown related longlived assets impairment charges recorded fiscal 2020 immaterial measure sensitivity fiscal 2020 impairment would change materially 10 decrease undiscounted cash flows stores clubs indicators impairment fiscal 2019 included pretax loss 48 billion related sale majority stake walmart brazil included full impairment relatedassets material impairment charges fiscal 2019 business combinations goodwill acquired intangible assets account business combinations using acquisition method accounting requires control obtained assets acquired liabilities assumed including amounts attributable noncontrolling interests recorded respective fair values date acquisition determination fair values identifiable assets liabilities requires estimates use valuation techniques market value readily available intangible assets acquired business combination typically use income method significant estimates valuing certain intangible assets include limited amount timing future cash flows growth rates discount rates useful lives excess purchase price fair values identifiable assets liabilities recorded goodwill assigned reporting unit consolidates acquisition components within reportable segment aggregated deemed single reporting unit components similar economic characteristics january 31 2020 reporting units consisted walmart us walmart international sams club goodwill indefinitelived acquired intangible assets amortized evaluated impairment annually whenever events changes circumstances indicate value certain asset may impaired generally evaluation begins qualitative assessment determine whether quantitative impairment test necessary determine performing assessment based qualitative factors fair value reporting unit likely less carrying amount fair value reporting unit substantially excess carrying amount cannot assured quantitative impairment test would performed quantitative test impairment requires management make judgments relating future cash flows growth rates economic market conditions evaluations based determining fair value reporting unit asset using valuation method discounted cash flow relative marketbased approach historically reporting units generated sufficient returns recover cost goodwill fair value significantly exceeded carrying value indefinitelived acquired intangible assets also historically generated sufficient returns recover cost however due certain strategic restructuring decisions fiscal 2020 recorded approximately 07 billion impairment related acquired trade names acquired developed software nature factors used tests different conditions occur future periods future operating results could materially impacted contingencies involved number legal proceedings record liability probable loss incurred amount reasonably estimable also perform assessment materiality loss contingencies loss either probable reasonably possible loss could incurred excess amounts accrued loss additional loss least reasonable possibility occurring impact financial statements would material provide disclosure loss contingency footnotes financial statements review contingencies least quarterly determine whether likelihood loss changed assess whether reasonable estimate loss range loss made although able predict outcome reasonably estimate range possible losses certain matters described note 10 notes consolidated financial statements recorded associated accrual related matters adverse judgment negotiated resolution matters could material adverse effect business financial position results operations cash flows income taxes income taxes significant effect net earnings subject income taxes us numerous foreign jurisdictions accordingly determination provision income taxes requires judgment use estimates certain cases interpretation application complex tax laws effective income tax rate affected many factors including changes assessment certain tax contingencies increases decreases valuation allowances changes tax law outcomes administrative audits impact discrete items mix earnings among us international operations statutory rates generally higher us statutory rate may fluctuate result tax returns routinely audited settlements issues raised audits sometimes affect tax provisions benefits uncertain tax positions recorded financial statements determining likely probability uncertain tax positions withstand challenge taxing authorities facts circumstances change reassess probabilities record changes financial statements appropriate account uncertain tax positions determining minimum recognition threshold tax position required meet recognized financial statements determination requires use judgment evaluating tax positions assessing timing amounts deductible taxable items deferred tax assets represent amounts available reduce income taxes payable taxable income future years assets arise temporary differences financial reporting tax bases assets liabilities well net operating loss tax credit carryforwards deferred tax assets evaluated future realization reduced valuation allowance extent portion likely realized many factors considered assessing whether likely deferred tax assets realized including recent cumulative earnings expectations future taxable income carryforward periods relevant quantitative qualitative factors recoverability deferred tax assets evaluated assessing adequacy future expected taxable income sources including reversal taxable temporary differences forecasted operating earnings available tax planning strategies evaluation relies estimates december 22 2017 tax cuts jobs act 2017 tax act enacted contains significant changes us income tax law effective beginning january 2018 tax act reduced us statutory tax rate 35 21 created new taxes foreignsourced earnings relatedparty payments discussed note 9 consolidated financial statements completed accounting tax effects tax act fiscal 2019 guidance issued us treasury department irs standardsetting bodies resulting changes estimates treated accordance relevant accounting guidance item 7aitem 7 managements discussion analysis financial condition results operations information required item furnished incorporation reference information caption managements discussion analysis pages 22 25 annual report shareholders year ended january 31 1998 item 8item 7 managements discussion analysis financial condition results operations information required item furnished incorporation reference information caption managements discussion analysis pages 20 25 annual report shareholders year ended january 31 1999 item 8item 7 managements discussion analysis financial condition results operations information required item incorporated reference information caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit annual report form 10k item 7a nannannanitem 7a quantitative qualitative disclosure market risk information required item furnished incorporation reference information subcaption market risk caption management’s discussion analysis pages 21 24 annual page 18 25 form 10k report shareholders year ended january 31 2000 item 8item 7a quantitative qualitative disclosure market risk information required item furnished incorporation reference information subcaption market risk caption managements discussion analysis pages 19 22 annual report shareholders year ended january 31 2001 item 8item 7a quantitative qualitative disclosure market risk information required item furnished incorporation reference information subcaption market risk caption management’s discussion analysis pages 20 23 annual report shareholders year ended january 31 2002 information included exhibit annual report item 8item 7a quantitative qualitative disclosure market risk information required item furnished incorporation reference information subcaption market risk caption management’s discussion analysis pages 25 28 annual report shareholders year ended january 31 2003 information included exhibit annual report item 8item 7a quantitative qualitative disclosure market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis results operations financial condition” included annual report shareholders year ended january 31 2004 information included exhibit annual report item 8item 7a quantitative qualitative disclosure market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis results operations financial condition” included annual report shareholders year ended january 31 2005 information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis results operations financial condition” included annual report shareholders year ended january 31 2006 information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption “market risk” caption “management’s discussion analysis financial condition results operations” included annual report shareholders information included exhibit annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption market risk caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption market risk caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption market risk caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 8item 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption market risk caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit 13 annual report form 10k item 8item 7a quantitative qualitative disclosures market risk market risk addition risks inherent operations exposed certain market risks including changes interest rates fluctuations currency exchange rates analysis presented market risk sensitive instruments based hypothetical scenario used calibrate potential risk represent view future market changes effect change particular assumption calculated without adjusting assumption reality however change one factor could cause change another may magnify negate sensitivities interest rate risk exposed changes interest rates result shortterm borrowings longterm debt issuances hedge portion interest rate risk managing mix fixed variable rate debt entering interest rate swaps fiscal 2018 net fair value interest rate swaps decreased approximately 87 million primarily due fluctuations market interest rates table provides information financial instruments sensitive changes interest rates debt obligations table represents principal cash flows related weightedaverage interest rates expected maturity dates interest rate swaps table represents contractual cash flows weightedaverage interest rates contractual maturity date unless otherwise noted notional amounts used calculate contractual cash flows exchanged contracts weightedaverage variable rates based upon prevailing market rates january 31 2018 1 longterm debt amounts table exclude companys derivatives classified fair value hedges january 31 2018 variable rate borrowings including effect commercial paper interest rate swaps represented 26 total shortterm longterm debt based january 31 2018 debt levels 100 basis point change prevailing market rates would cause annual interest costs change approximately 96 million foreign currency risk exposed fluctuations foreign currency exchange rates result net investments operations countries us fiscal 2018 movements currency exchange rates related impact translation balance sheets companys subsidiaries united kingdom canada primary cause 23 billion gain currency translation category accumulated comprehensive loss hedge portion foreign currency risk entering currency swaps designating certain foreigncurrencydenominated longterm debt net investment hedges hold currency swaps hedge currency exchange component net investments also hedge currency exchange rate fluctuation exposure associated forecasted payments principal interest nonus denominated debt aggregate fair value swaps asset position 413 million january 31 2018 liability position 147 million january 31 2017 change fair value swaps due fluctuations currency exchange rates primarily strengthening currencies relative us dollar fiscal 2018 hypothetical 10 increase decrease currency exchange rates underlying swaps market rate january 31 2018 would resulted loss gain value swaps 560 million hypothetical 10 change interest rates underlying swaps market rates effect january 31 2018 would resulted loss gain value swaps 22 million addition currency swaps designated foreigncurrencydenominated longterm debt nonderivative hedges net investments certain foreign operations outstanding longterm debt £17 billion january 31 2018 £25 billion january 31 2017 designated hedge net investment united kingdom january 31 2018 hypothetical 10 increase decrease value us dollar relative british pound would resulted change value debt 217 million addition outstanding longterm debt ¥180 billion january 31 2018 ¥10 billion january 31 2017 designated hedge net investment japan january 31 2018 hypothetical 10 increase decrease value us dollar relative japanese yen would resulted change value debt 150 million certain countries also enter immaterial foreign currency forward contracts hedge purchase payment purchase commitments denominated nonfunctional currencies investment risk fiscal 2018 fair value availableforsale investment jd increased approximately 15 billion due increase market value jd item 8item 7a quantitative qualitative disclosures market risk market risk addition risks inherent operations exposed certain market risks including changes interest rates currency exchange rates fair value equity investment jdcom analysis presented market risk sensitive instruments based hypothetical scenario used calibrate potential risk represent view future market changes effect change particular assumption calculated without adjusting assumption reality however change one factor could cause change another may magnify negate sensitivities interest rate risk exposed changes interest rates result shortterm borrowings longterm debt hedge portion interest rate risk managing mix fixed variable rate debt entering interest rate swaps fiscal 2019 net fair value interest rate swaps increased 13 million primarily due fluctuations market interest rates table provides information financial instruments sensitive changes interest rates longterm debt table represents principal cash flows related weightedaverage interest rates expected maturity dates interest rate swaps table represents contractual cash flows weightedaverage interest rates contractual maturity date unless otherwise noted notional amounts used calculate contractual cash flows exchanged contracts weightedaverage variable rates based upon prevailing market rates january 31 2019 1 longterm debt amounts table exclude companys derivatives classified fair value hedges january 31 2019 variable rate borrowings including effect commercial paper interest rate swaps represented 22 total shortterm longterm debt based january 31 2019 debt levels 100 basis point change prevailing market rates would cause annual interest costs change approximately 110 million foreign currency risk exposed fluctuations currency exchange rates result net investments operations countries us well foreigncurrencydenominated longterm debt fiscal 2019 movements currency exchange rates related impact translation balance sheets companys subsidiaries uk chile canada primary cause 21 billion loss currency translation category accumulated comprehensive loss hedge portion foreign currency risk entering currency swaps aggregate fair value swaps asset position 62 million 413 million january 31 2019 january 31 2018 respectively change fair value swaps due fluctuations currency exchange rates primarily strengthening us dollar relative currencies fiscal 2019 hypothetical 10 change currency exchange rates underlying swaps market rate january 31 2019 would resulted change value swaps 515 million hypothetical 10 change interest rates underlying swaps market rates effect january 31 2019 would resulted change value swaps 13 million addition currency swaps also hedge portion foreign currency risk designating foreigncurrencydenominated longterm debt nonderivative hedges net investments certain foreign operations outstanding longterm debt £17 billion january 31 2019 january 31 2018 designated hedge net investment united kingdom january 31 2019 hypothetical 10 increase decrease value us dollar relative british pound would resulted change value debt 201 million addition outstanding longterm debt ¥180 billion january 31 2019 january 31 2018 designated hedge net investment japan january 31 2019 hypothetical 10 change value us dollar relative japanese yen would resulted change value debt 150 million certain countries also enter immaterial foreign currency forward contracts hedge purchase payment purchase commitments denominated nonfunctional currencies investment risk exposed changes jdcom jd stock price result equity investment jd since february 1 2018 adopted new financial instrument accounting standard change fair value recorded within gains losses resulted loss 35 billion due decrease stock price jd january 31 2019 fair value equity investment jd 36 billion item 8item 7a quantitative qualitative disclosures market risk market risk addition risks inherent operations exposed certain market risks including changes interest rates currency exchange rates fair value equity investment jdcom analysis presented market risk sensitive instruments based hypothetical scenario used calibrate potential risk represent view future market changes effect change particular assumption calculated without adjusting assumption reality however change one factor could cause change another may magnify negate sensitivities interest rate risk exposed changes interest rates result shortterm borrowings longterm debt hedge portion interest rate risk managing mix fixed variable rate debt entering interest rate swaps fiscal 2020 net fair value interest rate swaps increased 175 million primarily due fluctuations market interest rates table provides information financial instruments sensitive changes interest rates longterm debt table represents principal cash flows related weightedaverage interest rates expected maturity dates interest rate swaps table represents contractual cash flows weightedaverage interest rates contractual maturity date unless otherwise noted notional amounts used calculate contractual cash flows exchanged contracts weightedaverage variable rates based upon prevailing market rates january 31 2020 1 longterm debt amounts table exclude companys derivatives classified fair value hedges january 31 2020 variable rate borrowings including effect commercial paper interest rate swaps represented 12 total shortterm longterm debt based january 31 2020 debt levels 100 basis point change prevailing market rates would cause annual interest costs change approximately 61 million foreign currency risk exposed fluctuations currency exchange rates result net investments operations countries us well foreigncurrencydenominated longterm debt fiscal 2020 movements currency exchange rates related impact translation balance sheets companys subsidiaries uk mexico primary cause 03 billion gain currency translation category accumulated comprehensive loss hedge portion foreign currency risk entering currency swaps aggregate fair value swaps liability position 241 million asset position 62 million january 31 2020 january 31 2019 respectively change fair value swaps due fluctuations currency exchange rates primarily strengthening us dollar relative currencies fiscal 2020 hypothetical result uniform 10 weakening value us dollar relative currencies underlying swaps would resulted change value swaps 173 million hypothetical 10 change interest rates underlying swaps market rates effect january 31 2020 would resulted change value swaps 42 million addition currency swaps also hedge portion foreign currency risk designating foreigncurrencydenominated longterm debt nonderivative hedges net investments certain foreign operations outstanding longterm debt £17 billion january 31 2020 january 31 2019 designated hedge net investment uk january 31 2020 hypothetical 10 increase decrease value us dollar relative british pound would resulted change value debt 201 million addition outstanding longterm debt ¥180 billion january 31 2020 january 31 2019 designated hedge net investment japan january 31 2020 hypothetical 10 change value us dollar relative japanese yen would resulted change value debt 150 million certain countries also enter immaterial foreign currency forward contracts hedge purchase payment purchase commitments denominated nonfunctional currencies investment risk exposed changes jdcom jd stock price result equity investment jd change fair value recorded within gains losses resulted gain 19 billion fiscal 2020 due increase stock price jd january 31 2020 fair value equity investment jd 54 billion january 31 2020 hypothetical 10 change stock price jd would changed investment jd approximately 550 million item 8nannanitem 7a quantitative qualitative disclosures market risk information required item incorporated reference information subcaption market risk caption managements discussion analysis financial condition results operations included annual report shareholders information included exhibit annual report form 10k item 8 item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements pages 17 25 annual report shareholders year ended january 31 1995 item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements pages 23 31 annual report shareholders year ended january 31 1996 item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements pages 26 34 annual report shareholders year ended january 31 1997 item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders’ equity consolidated statements cash flows notes consolidated financial statements report independent auditors pages 26 40 annual report shareholders year ended january 31 2000 item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements report independent auditors pages 24 40 annual report shareholders year ended january 31 2001 item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders’ equity consolidated statements cash flows notes consolidated financial statements report independent auditors pages 24 40 annual report shareholders year ended january 31 2002 information included exhibit annual report item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders’ equity consolidated statements cash flows notes consolidated financial statements report independent auditors pages 30 51 annual report shareholders year ended january 31 2003 information included exhibit annual report item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent auditors” included annual report shareholders year ended january 31 2004 information included exhibit annual report item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent auditors” included annual report shareholders year ended january 31 2005 information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent auditors” included annual report shareholders year ended january 31 2006 information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent auditors” included annual report shareholders information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent registered public accounting firm” included annual report shareholders information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent registered public accounting firm” included annual report shareholders information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent registered public accounting firm” included annual report shareholders information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements cash flows” “notes consolidated financial statements” “report independent registered public accounting firm” included annual report shareholders information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions “consolidated statements income” “consolidated balance sheets” “consolidated statements shareholders’ equity” “consolidated statements comprehensive income” “consolidated statements cash flows” “notes consolidated financial statements” “report independent registered public accounting firm” included annual report shareholders information included exhibit annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions consolidated statements income consolidated statements comprehensive income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements report independent registered public accounting firm included annual report shareholders information included exhibit 13 annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions consolidated statements income consolidated statements comprehensive income consolidated balance sheets consolidated statements shareholders equity redeemable noncontrolling interest consolidated statements cash flows notes consolidated financial statements report independent registered public accounting firm included annual report shareholders information included exhibit 13 annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions consolidated statements income consolidated statements comprehensive income consolidated balance sheets consolidated statements shareholders equity redeemable noncontrolling interest consolidated statements cash flows notes consolidated financial statements report independent registered public accounting firm included annual report shareholders information included exhibit 13 annual report form 10k item 9item 8 financial statements supplementary data information required item incorporated reference information captions consolidated statements income consolidated statements comprehensive income consolidated balance sheets consolidated statements shareholders equity redeemable noncontrolling interest consolidated statements cash flows notes consolidated financial statements report independent registered public accounting firm included annual report shareholders information included exhibit 13 annual report form 10k item 9item 8 financial statements supplementary data consolidated financial statements walmart inc formerly walmart stores inc fiscal year ended january 31 2018 managements report shareholders walmart inc management walmart inc walmart company responsible preparation integrity objectivity walmarts consolidated financial statements financial information contained annual report form 10k consolidated financial statements prepared conformity accounting principles generally accepted united states preparing consolidated financial statements management required make certain estimates judgments based upon currently available information managements view current conditions circumstances audit committee board directors oversees process reporting financial information audit consolidated financial statements audit committee stays informed financial condition walmart regularly reviews managements financial policies procedures independence independent auditors internal control financial reporting objectivity financial reporting independent auditors internal auditors free access audit committee meet audit committee regularly without management present acting audit committee retained ernst young llp independent registered public accounting firm audit consolidated financial statements appearing made available ernst young llp financial records related data connection audit consolidated financial statements filed securities exchange commission sec required certifications related consolidated financial statements year ended january 31 2018 certifications attached exhibits annual report form 10k additionally also provided new york stock exchange required annual certification chief executive officer regarding compliance new york stock exchanges corporate governance listing standards report independent registered public accounting firm shareholders board directors walmart inc opinion financial statements audited accompanying consolidated balance sheets walmart inc company january 31 2018 2017 related consolidated statements income comprehensive income shareholders equity cash flows three years period ended january 31 2018 related notes collectively referred consolidated financial statements opinion consolidated financial statements present fairly material respects financial position company january 31 2018 2017 results operations cash flows three years period ended january 31 2018 conformity us generally accepted accounting principles also audited accordance standards public company accounting oversight board united states pcaob companys internal control financial reporting january 31 2018 based criteria established internal controlintegrated framework issued committee sponsoring organizations treadway commission 2013 framework report dated march 30 2018 expressed unqualified opinion thereon basis opinion financial statements responsibility companys management responsibility express opinion companys financial statements based audits public accounting firm registered pcaob required independent respect company accordance us federal securities laws applicable rules regulations securities exchange commission pcaob conducted audits accordance standards pcaob standards require plan perform audit obtain reasonable assurance whether financial statements free material misstatement whether due error fraud audits included performing procedures assess risks material misstatement financial statements whether due error fraud performing procedures respond risks procedures included examining test basis evidence regarding amounts disclosures financial statements audits also included evaluating accounting principles used significant estimates made management well evaluating overall presentation financial statements believe audits provide reasonable basis opinion ernst young llp served companys auditor since 1969 rogers arkansas march 30 2018 report independent registered public accounting firm shareholders board directors walmart inc opinion internal control financial reporting audited walmart incs internal control financial reporting january 31 2018 based criteria established internal controlintegrated framework issued committee sponsoring organizations treadway commission 2013 framework coso criteria opinion walmart inc company maintained material respects effective internal control financial reporting january 31 2018 based coso criteria also audited accordance standards public company accounting oversight board united states pcaob accompanying consolidated balance sheets walmart inc january 31 2018 2017 related consolidated statements income comprehensive income shareholders equity cash flows three years period ended january 31 2018 related notes report dated march 30 2018 expressed unqualified opinion thereon basis opinion companys management responsible maintaining effective internal control financial reporting assessment effectiveness internal control financial reporting included accompanying report internal control financial reporting responsibility express opinion companys internal control financial reporting based audit public accounting firm registered pcaob required independent respect company accordance us federal securities laws applicable rules regulations securities exchange commission pcaob conducted audit accordance standards pcaob standards require plan perform audit obtain reasonable assurance whether effective internal control financial reporting maintained material respects audit included obtaining understanding internal control financial reporting assessing risk material weakness exists testing evaluating design operating effectiveness internal control based assessed risk performing procedures considered necessary circumstances believe audit provides reasonable basis opinion definition limitations internal control financial reporting companys internal control financial reporting process designed provide reasonable assurance regarding reliability financial reporting preparation financial statements external purposes accordance generally accepted accounting principles companys internal control financial reporting includes policies procedures 1 pertain maintenance records reasonable detail accurately fairly reflect transactions dispositions assets company 2 provide reasonable assurance transactions recorded necessary permit preparation financial statements accordance generally accepted accounting principles receipts expenditures company made accordance authorizations management directors company 3 provide reasonable assurance regarding prevention timely detection unauthorized acquisition use disposition companys assets could material effect financial statements inherent limitations internal control financial reporting may prevent detect misstatements also projections evaluation effectiveness future periods subject risk controls may become inadequate changes conditions degree compliance policies procedures may deteriorate ernst young llp rogers arkansas march 30 2018 walmart inc consolidated statements income see accompanying notes walmart inc consolidated statements comprehensive income see accompanying notes walmart inc consolidated balance sheets see accompanying notes walmart inc consolidated statements shareholders equity see accompanying notes walmart inc consolidated statements cash flows see accompanying notes walmart inc notes consolidated financial statements note 1 summary significant accounting policies general walmart inc formerly walmart stores inc walmart company helps people around world save money live better anytime anywhere retail stores ecommerce innovation company striving create customercentric experience seamlessly integrates digital physical shopping omnichannel offering saves time customers week company serves nearly 270 million customers visit 11700 stores numerous ecommerce websites 65 banners 28 countries companys strategy lead price invest differentiate access competitive assortment deliver great experience companys operations comprise three reportable segments walmart us walmart international sams club principles consolidation consolidated financial statements include accounts walmart subsidiaries fiscal years ended january 31 2018 fiscal 2018 january 31 2017 fiscal 2017 january 31 2016 fiscal 2016 material intercompany accounts transactions eliminated consolidation company consolidates variable interest entities determined company primary beneficiary entities operations investments unconsolidated affiliates 50 less owned otherwise meet consolidation requirements accounted primarily using equity method equity method investments immaterial companys consolidated financial statements companys consolidated financial statements based fiscal year ending january 31 united states us canadian operations company consolidates operations generally using onemonth lag based calendar year significant intervening events month january 2018 related operations consolidated using lag materially affected consolidated financial statements use estimates consolidated financial statements prepared conformity us generally accepted accounting principles require management make estimates assumptions affect reported amounts assets liabilities managements estimates assumptions also affect disclosure contingent assets liabilities date financial statements reported amounts revenues expenses reporting period actual results may differ estimates cash equivalents company considers investments maturity purchased three months less cash equivalents credit card debit card electronic transfer transactions process less seven days classified cash equivalents amounts due banks transactions classified cash equivalents totaled 16 billion 15 billion january 31 2018 2017 respectively addition cash equivalents included restricted cash 300 million 265 million january 31 2018 2017 respectively primarily related cash collateral holdings various counterparties required certain derivative trust agreements companys cash balances held various locations around world substantially companys 68 billion cash equivalents january 31 2018 held outside us companys 69 billion cash equivalents january 31 2017 59 billion held outside us cash equivalents held outside us generally utilized support liquidity needs companys nonus operations company uses intercompany financing arrangements effort ensure cash made available country needed minimum cost possible management believe necessary repatriate earnings held outside us anticipates companys domestic liquidity needs met cash flows provided domestic operating activities supplemented longterm debt shortterm borrowings accordingly company intends certain exceptions continue indefinitely reinvest companys earnings held outside us foreign operations part us tax reform enacted december 22 2017 company currently assessing impact new legislation turn impact assertion regarding potential future repatriation companys intentions respect reinvestment change amounts held within companys foreign operations could repatriated us although repatriation new us tax laws could subject incremental withholding taxes company expect current local laws existing limitations potential taxes anticipated future repatriations earnings held outside us material effect companys overall liquidity financial condition results operations january 31 2018 2017 cash equivalents approximately 14 billion 10 billion respectively may freely transferable us due local laws restrictions receivables stated carrying values net reserve doubtful accounts receivables consist primarily amounts due • insurance companies resulting pharmacy sales • banks customer credit debit cards electronic bank transfers take excess seven days process • suppliers marketing incentive programs • real estate transactions inventories company values inventories lower cost market determined primarily retail inventory method accounting using lastin firstout lifo method walmart us segments inventories inventory walmart international segment valued primarily retail inventory method accounting using firstin firstout fifo method retail inventory method accounting results inventory valued lower cost market since permanent markdowns immediately recorded reduction retail value inventory sams club segment valued using weightedaverage cost lifo method january 31 2018 january 31 2017 companys inventories valued lifo approximated inventories valued fifo assets held sale assets held sale represent components businesses meet accounting requirements classified held sale presented single asset liability amounts companys financial statements valuation allowance necessary recognize net carrying amount lower cost fair value less cost sell company reviews businesses assets held sale reporting period determine whether existing carrying amounts fully recoverable comparison estimated fair values january 31 2018 2017 immaterial amounts assets liabilities held sale classified within prepaid expenses accrued liabilities respectively consolidated balance sheets property equipment property equipment initially recorded cost gains losses disposition recognized earned incurred costs major improvements capitalized costs normal repairs maintenance charged expense incurred following table summarizes companys property equipment balances includes estimated useful lives generally used depreciate assets straightline basis leasehold improvements depreciated amortized shorter estimated useful life asset remaining expected lease term total depreciation amortization expense property equipment property financing obligations property capital leases fiscal 2018 2017 2016 105 billion 101 billion 95 billion respectively leases company estimates expected term lease assuming exercise renewal options economic penalty exists would preclude abandonment lease end initial noncancelable term exercise renewal sole discretion company expected term used determination whether store club lease capital operating lease calculation straightline rent expense additionally useful life leasehold improvements limited expected lease term economic life asset whichever shorter significant expenditures made leasehold improvements late expected term lease renewal reasonably assured useful life leasehold improvement limited end renewal period economic life asset whichever shorter rent abatements escalations considered calculation minimum lease payments companys capital lease tests determining straightline rent expense operating leases company often involved construction leased stores certain cases payments made certain structural components included lessors construction leased assets result company deemed owner leased assets accounting purposes result payments regardless significance automatic indicators ownership require company capitalize lessors total project cost corresponding financing obligation upon completion lessors project company performs saleleaseback analysis determine assets related financing obligation derecognized companys consolidated balance sheets company deemed continuing involvement leased assets related financing obligation remain companys consolidated balance sheets generally amortized lease term end lease term including exercise renewal options net remaining financing obligation net carrying value fixed asset recognized noncash gain sale property longlived assets longlived assets initially recorded cost management reviews longlived assets indicators impairment whenever events changes circumstances indicate carrying amount may recoverable evaluation performed lowest level identifiable cash flows individual store club level undiscounted cash flows expected generated related assets estimated assets useful lives based updated projections evaluation indicates carrying amount assets may recoverable potential impairment measured based upon fair value related asset group determined appropriate market appraisal valuation technique goodwill acquired intangible assets goodwill represents excess purchase price fair value net assets acquired business combinations allocated appropriate reporting unit acquired intangible assets stated fair value acquired determined valuation technique commensurate intended use related asset goodwill indefinitelived intangible assets amortized rather evaluated impairment annually whenever events changes circumstances indicate value asset may impaired definitelived intangible assets considered longlived assets amortized straightline basis periods expected economic benefits provided goodwill evaluated impairment using either qualitative quantitative approach companys reporting units generally qualitative assessment first performed determine whether quantitative goodwill impairment test necessary management determines performing assessment based qualitative factors fair value reporting unit likely less carrying amount fair value reporting unit substantially excess carrying amount cannot assured quantitative goodwill impairment test would required quantitative test goodwill impairment performed determining fair value related reporting units fair value measured based discounted cash flow method relative marketbased approaches evaluation management determined fair value reporting unit greater carrying amount accordingly company recorded impairment charges related goodwill following table reflects goodwill activity reportable segment fiscal 2018 2017 1 goodwill recorded fiscal 2017 walmart us acquisitions primarily relates jetcom inc jetcom indefinitelived intangible assets included assets deferred charges companys consolidated balance sheets assets evaluated impairment based fair values using valuation techniques updated annually based recent variables assumptions significant impairment charges related indefinitelived intangible assets recorded fiscal 2018 2017 2016 self insurance reserves company selfinsures number risks including limited workers compensation general liability auto liability product liability certain employeerelated healthcare benefits standard actuarial procedures data analysis used estimate liabilities associated risks balance sheet date undiscounted basis recorded liabilities reflect ultimate cost claims incurred paid estimable administrative runout expenses related processing outstanding claim payments regular basis liabilities evaluated appropriateness claims reserve valuations provided independent thirdparty actuaries limit exposure risks company maintains insurance coverage varying limits retentions including stoploss insurance coverage workers compensation general liability auto liability income taxes income taxes accounted balance sheet method deferred tax assets liabilities recognized estimated future tax consequences attributable differences financial statement carrying amounts existing assets liabilities respective tax bases temporary differences deferred tax assets liabilities measured using enacted tax rates effect year temporary differences expected recovered settled effect deferred tax assets liabilities change tax rate recognized income period includes enactment date deferred tax assets evaluated future realization reduced valuation allowance extent portion likely realized many factors considered assessing whether likely deferred tax assets realized including recent cumulative earnings expectations future taxable income carryforward periods relevant quantitative qualitative factors recoverability deferred tax assets evaluated assessing adequacy future expected taxable income sources including reversal taxable temporary differences forecasted operating earnings available tax planning strategies sources income rely heavily estimates determining provision income taxes annual effective income tax rate used based annual income permanent differences book tax income statutory income tax rates discrete events audit settlements changes tax laws recognized period occur company records liability unrecognized tax benefits resulting uncertain tax positions taken expected taken tax return company records interest penalties related unrecognized tax benefits interest expense operating selling general administrative expenses respectively companys consolidated statements income refer note 9 additional income tax disclosures revenue recognition sales company recognizes sales revenue net sales taxes estimated sales returns time sells merchandise customer ecommerce sales include shipping revenue recorded upon delivery customer additionally estimated sales returns calculated using historical experience actual returns percent sales membership fee revenue company recognizes membership fee revenue us internationally term membership typically 12 months following table summarizes membership fee activity fiscal 2018 2017 2016 membership fee revenue included membership income companys consolidated statements income deferred membership fee included accrued liabilities companys consolidated balance sheets gift cards customer purchases gift cards utilized stores ecommerce websites recognized revenue card redeemed customer purchases merchandise using gift card gift cards us countries carry expiration date therefore customers members redeem gift cards merchandise indefinitely gift cards foreign countries company business expiration dates certain number gift cards without expiration dates fully redeemed management estimates unredeemed gift cards recognizes revenue amounts determined likelihood redemption remote management periodically reviews updates estimates financial services company recognizes revenue service transactions time service performed generally revenue services classified component net sales companys consolidated statements income cost sales cost sales includes actual product cost transportation companys distribution facilities stores clubs suppliers cost transportation companys distribution facilities stores clubs customers cost warehousing sams club segment import distribution centers cost sales reduced supplier payments reimbursement specific incremental identifiable costs payments suppliers company receives consideration suppliers various programs primarily volume incentives warehouse allowances reimbursements specific programs markdowns margin protection advertising supplierspecific fixtures payments suppliers accounted reduction cost sales except certain limited situations payment reimbursement specific incremental identifiable costs recognized companys consolidated statements income related inventory sold operating selling general administrative expenses operating selling general administrative expenses include operating costs company except cost sales described result majority cost warehousing occupancy walmart us walmart international segments distribution facilities included operating selling general administrative expenses company includes portion cost walmart us walmart international segments distribution facilities cost sales gross profit gross profit percentage net sales may comparable retailers may include costs related distribution facilities cost sales calculation gross profit advertising costs advertising costs expensed incurred consist primarily print television digital advertisements recorded operating selling general administrative expenses companys consolidated statements income certain limited situations reimbursements suppliers specific incremental identifiable advertising costs recognized reduction advertising costs operating selling general administrative expenses advertising costs 31 billion 29 billion 25 billion fiscal 2018 2017 2016 respectively preopening costs cost startup activities including organization costs related new store openings store remodels relocations expansions conversions expensed incurred included operating selling general administrative expenses companys consolidated statements income preopening costs totaled 106 million 131 million 271 million fiscal 2018 2017 2016 respectively currency translation assets liabilities international subsidiaries translated respective local currency us dollar using exchange rates balance sheet date related translation adjustments recorded component accumulated comprehensive loss companys consolidated statements income international subsidiaries translated respective local currencies us dollar using average exchange rates period covered income statements recent accounting pronouncements adopted fiscal 2018 march 2016 financial accounting standards board fasb issued accounting standards update asu 201609 compensationstock compensation topic 718 intended simplify accounting sharebased payment transactions asu changed several aspects accounting sharebased payment award transactions including accounting income taxes forfeitures minimum statutory tax withholding requirements management adopted asu beginning february 1 2017 result reclassified immaterial amount operating activities financing activities companys prior year consolidated cash flows december 22 2017 securities exchange commission sec staff issued staff accounting bulletin 118 income tax accounting implications tax cuts jobs act sab 118 response tax cuts jobs act 2017 tax act company elected record provisional amounts allowed sab 118 measurement period extend beyond one year enactment date management expects complete analysis within measurement period accordance sab 118 pronouncements adopted year ending january 31 2019 fiscal 2019 may 2014 fasb issued asu 201409 revenue contracts customers topic 606 asu represents single comprehensive model recognize revenue depict transfer promised goods services customer amount reflects consideration expects entitled exchange goods services company adopted asu february 1 2018 modified retrospective approach resulted immaterial cumulative adjustment retained earnings also asu require additional disclosures january 2016 fasb issued asu 201601 financial instrumentsoverall topic 825 updates certain aspects recognition measurement presentation disclosure financial instruments asu primarily impacts companys accounting investment jdcom jd company adopted asu february 1 2018 resulted cumulative positive adjustment retained earnings approximately 29 billion based market value investment jd january 31 2018 retained earnings adjustment relates available sale portion cost portion investment beginning february 1 2018 adoption requires remeasurement investment jd due observable price changes impairments recorded consolidated statement income introducing volatility reported net income november 2016 fasb issued asu 201618 statement cash flowsrestricted cash topic 230 requires restricted cash included cash equivalents reconciling beginning ending amounts statement cash flows company adopted asu february 1 2018 immaterial modify companys presentation consolidated statements cash flows january 31 2018 company restricted cash recorded line items cash equivalents 258 million february 2018 fasb issued accounting standards update asu 201802 income statementreporting comprehensive income topic 220 reclassification certain tax effects accumulated comprehensive income asu provides stranded tax effects tax act accumulated comprehensive loss may reclassified retained earnings asu effective february 1 2019 early adoption permitted management anticipates early adopting optional standard evaluating effect companys consolidated financial statements pronouncements evaluated february 2016 fasb issued asu 201602 leases topic 842 requires lease assets liabilities recorded balance sheet certain qualitative quantitative disclosures also required well retrospective recognition measurement impacted leases company adopt asu february 1 2019 implementing new lease systems connection adoption management progressing implementation continuing evaluate effect companys consolidated financial statements disclosures management expects material impact companys consolidated balance sheet june 2016 fasb issued asu 201613 financial instrumentscredit losses topic 326 modifies measurement expected credit losses certain financial instruments company adopt asu february 1 2020 management currently evaluating asu determine impact companys consolidated financial statements note 2 net income per common share basic net income per common share attributable walmart based weightedaverage common shares outstanding relevant period diluted net income per common share attributable walmart based weightedaverage common shares outstanding relevant period adjusted dilutive effect sharebased awards company significant sharebased awards outstanding antidilutive included calculation diluted net income per common share attributable walmart fiscal 2018 2017 2016 following table provides reconciliation numerators denominators used determine basic diluted net income per common share attributable walmart note 3 shareholders equity sharebased compensation company awarded sharebased compensation associates nonemployee directors company compensation expense recognized plans 626 million 596 million 448 million fiscal 2018 2017 2016 respectively sharebased compensation expense generally included operating selling general administrative expenses companys consolidated statements income total income tax benefit recognized sharebased compensation 150 million 212 million 151 million fiscal 2018 2017 2016 respectively following table summarizes companys sharebased compensation expense award type walmart inc stock incentive plan 2015 plan amended restated effective february 23 2016 amended february 1 2017 renamed february 1 2018 established grant stock options restricted nonvested stock performance share units equity compensation awards 210 million shares walmart common stock issued plan registered securities act 1933 amended company believes awards serve align interests associates shareholders plans award types summarized follows • restricted stock performance share units restricted stock awards shares vest based passage time include restrictions related employment performance share units vest based passage time achievement performance criteria may range 0 150 original award amount vesting periods awards generally one three years restricted stock performance share units may settled deferred stock accounted equity companys consolidated balance sheets fair value restricted stock awards determined date grant expensed ratably vesting period fair value performance share units determined date grant using companys stock price discounted expected dividend yield vesting period recognized vesting period weightedaverage discount dividend yield used determine fair value performance share units fiscal 2018 2017 2016 72 83 74 respectively • restricted stock units restricted stock units provide rights company stock specified service period generally 50 vest three years grant date remaining 50 vest five years grant date fair value restricted stock unit determined date grant using stock price discounted expected dividend yield vesting period recognized ratably vesting period expected dividend yield based anticipated dividends vesting period weightedaverage discount dividend yield used determine fair value restricted stock units granted fiscal 2018 2017 2016 90 87 respectively addition plan companys subsidiary united kingdom stock option plans certain colleagues generally vest three years stock option sharebased compensation expense included line table following table shows activity restricted stock performance share units restricted stock units fiscal 2018 1 assumes payout rate 100 performance share units following table includes additional information related restricted stock performance share units restricted stock units share repurchase program time company repurchases shares common stock share repurchase programs authorized companys board directors repurchases made fiscal year prior november 20 2017 made plan effect beginning fiscal 2018 october 9 2017 board directors approved new 200 billion share repurchase program beginning november 20 2017 replaced previous share repurchase program january 31 2018 authorization 188 billion share repurchases remained current share repurchase program repurchased shares constructively retired returned unissued status company considers several factors determining execute share repurchases including among things current cash needs capacity leverage cost borrowings results operations market price common stock following table provides settlement date basis number shares repurchased average price paid per share total amount paid share repurchases fiscal 2018 2017 2016 note 4 accumulated comprehensive loss following table provides changes composition total accumulated comprehensive loss fiscal 2018 2017 2016 amounts reclassified accumulated comprehensive loss derivative instruments recorded interest net companys consolidated statements income amounts minimum pension liability recorded operating selling general administrative expenses companys consolidated statements income tax impact amounts shown table immaterial note 5 accrued liabilities companys accrued liabilities consist following 1 accrued wages benefits include accrued wages salaries vacation bonuses incentive plans 2 selfinsurance consists insurancerelated liabilities workers compensation general liability auto liability product liability certain employeerelated healthcare benefits 3 accrued nonincome taxes include accrued payroll value added sales miscellaneous taxes 4 accrued liabilities consist various items maintenance utilities advertising interest legal contingencies note 6 shortterm borrowings longterm debt shortterm borrowings consist commercial paper lines credit shortterm borrowings january 31 2018 2017 53 billion 11 billion respectively weightedaverage interest rates 15 62 respectively company various committed lines credit us committed 23 financial institutions totaling 125 billion january 31 2018 2017 respectively committed lines credit summarized following table 1 may 2017 company renewed extended existing fiveyear credit facility existing 364day revolving credit facility used support commercial paper program committed lines credit table mature various times may 2018 may 2022 carry interest rates generally ranging libor plus 10 basis points libor plus 75 basis points incur commitment fees ranging 15 40 basis points conjunction committed lines credit listed table company agreed observe certain covenants restrictive relates maximum amount secured debt additionally company also maintains committed lines credit outside us available undrawn amount approximately 40 billion january 31 2018 apart committed lines credit company trade standby letters credit totaling 26 billion 36 billion january 31 2018 2017 respectively letters credit utilized normal business activities companys longterm debt includes fair value instruments discussed note 8 consists following 1 average rate represents weightedaverage stated rate corresponding debt category based yearend balances yearend interest rates interest costs also impacted certain derivative financial instruments described note 8 2 includes deferred loan costs discounts fair value hedges foreignheld debt secured debt january 31 2018 2017 company secured debt amount 10 million 14 million respectively collateralized property aggregate carrying amount approximately 101 million 82 million respectively january 31 2018 2017 company 500 million debt embedded put options issuance money market puttable reset securities amount 500 million structured remarketed connection annual reset interest rate reason remarketing notes occur time interest rate reset holders notes must sell company must repurchase notes par accordingly issuance classified longterm debt due within one year companys consolidated balance sheets annual maturities longterm debt next five years thereafter follows debt issuances information significant longterm debt issued fiscal 2018 follows described note 8 current year issuances foreigncurrencydenominated longterm debt designated hedge companys net investment japan company significant longterm debt issuances fiscal 2017 received proceeds number small longterm debt issuances several nonus operations maturities extinguishments following table provides details debt repayments fiscal 2018 1 represents portion principal amount repaid fiscal 2018 connection extinguishing debt company paid premiums approximately 31 billion fiscal 2018 resulting loss extinguishment debt approximately 31 billion fiscal 2017 following longterm debt matured repaid fiscal 2018 2017 company also repaid smaller longterm debt matured several nonus operations note 7 fair value measurements company records discloses certain financial nonfinancial assets liabilities fair value fair value asset price asset could sold orderly transaction unrelated knowledgeable willing parties able engage transaction fair value liability amount would paid transfer liability new obligor transaction parties amount would paid settle liability creditor assets liabilities recorded fair value measured using fair value hierarchy prioritizes inputs used measuring fair value levels fair value hierarchy • level 1 observable inputs quoted prices active markets • level 2 inputs quoted prices active markets either directly indirectly observable • level 3 unobservable inputs little market data exists therefore requiring company develop assumptions recurring fair value measurements company holds derivative instruments required measured fair value recurring basis fair values estimated amounts company would receive pay upon termination related derivative agreements reporting dates fair values measured using income approach level 2 inputs include relevant interest rate foreign currency forward curves january 31 2018 2017 notional amounts fair values derivatives follows additionally companys availableforsale securities measured fair value recurring basis using level 1 inputs changes fair value recorded accumulated comprehensive loss cost basis fair value companys availableforsale securities january 31 2018 2017 follows nonrecurring fair value measurements addition assets liabilities recorded fair value recurring basis companys assets liabilities also subject nonrecurring fair value measurements generally assets recorded fair value nonrecurring basis result impairment charges fiscal 2018 impairment charges assets measured fair value nonrecurring basis 14 billion primarily related restructuring activities described note 14 well discontinued real estate projects us decisions exit certain international properties impairment charges classified operating selling general administrative expenses companys consolidated statement income fair value determined based comparable market values similar properties rental income approach using level 2 inputs impairment charges related restructuring decisions exit properties fiscal 2018 material additionally total impairment charges fiscal 2017 material fair value disclosures company records cash equivalents shortterm borrowings cost carrying values instruments approximate fair value due shortterm maturities companys longterm debt also recorded cost fair value estimated using level 2 inputs based companys current incremental borrowing rate similar types borrowing arrangements carrying value fair value companys longterm debt january 31 2018 2017 follows note 8 derivative financial instruments company uses derivative financial instruments hedging nontrading purposes manage exposure changes interest currency exchange rates well maintain appropriate mix fixed variablerate debt use derivative financial instruments hedging programs subjects company certain risks market credit risks market risk represents possibility value derivative financial instrument change hedging relationship change value derivative financial instrument offset great extent change value underlying hedged item credit risk related derivative financial instrument represents possibility counterparty fulfill terms contract notional contractual amount companys derivative financial instruments used measure interest paid received represent companys exposure due credit risk credit risk monitored established approval procedures including setting concentration limits counterparty reviewing credit ratings requiring collateral counterparty appropriate company enters derivative transactions counterparties rated better nationally recognized credit rating agencies subsequent entering derivative transactions company regularly monitors credit ratings counterparties connection various derivative agreements including master netting arrangements company held cash collateral counterparties 279 million 242 million january 31 2018 january 31 2017 respectively company records cash collateral received amounts due counterparties exclusive derivative asset furthermore part master netting arrangements counterparties company also required post collateral counterparty companys net derivative liability position exceeds 150 million counterparties company cash collateral posted counterparties january 31 2018 january 31 2017 respectively company records cash collateral posts counterparties amounts receivable counterparties exclusive derivative liability company uses derivative financial instruments purpose hedging exposure interest currency exchange rate risks accordingly contractual terms hedged instrument closely mirror hedged item providing high degree risk reduction correlation contracts effective meeting risk reduction correlation criteria recorded using hedge accounting derivative financial instrument recorded using hedge accounting depending nature hedge changes fair value instrument either offset change fair value hedged assets liabilities firm commitments earnings recognized accumulated comprehensive loss hedged item recognized earnings hedge ineffectiveness immediately recognized earnings companys net investment cash flow instruments highly effective hedges ineffective portion expected significant instruments meet criteria hedge accounting contracts company elected hedge accounting recorded fair value unrealized gains losses reported earnings period change fair value instruments company party receive fixedrate pay variablerate interest rate swaps company uses hedge fair value fixedrate debt notional amounts used measure interest paid received represent companys exposure due credit loss companys interest rate swaps receive fixedinterest rate payments pay variableinterest rate payments designated fair value hedges specific terms notional amounts derivative instruments match fixedrate debt hedged derivative instruments assumed perfectly effective hedges changes fair values derivative instruments recorded earnings offset corresponding changes fair values hedged items also recorded earnings accordingly impact companys consolidated statements income fair value instruments mature dates ranging october 2020 april 2024 net investment instruments company party crosscurrency interest rate swaps company uses hedge net investments agreements contracts exchange fixedrate payments one currency fixedrate payments another currency changes fair value instruments recorded accumulated comprehensive loss offsetting currency translation adjustment related investment also recorded accumulated comprehensive loss instruments mature dates ranging july 2020 february 2030 company issued foreigncurrencydenominated longterm debt hedges net investments certain foreign operations foreigncurrencydenominated longterm debt issuances designated qualify nonderivative hedging instruments accordingly foreign currency translation debt instruments recorded accumulated comprehensive loss offsetting foreign currency translation adjustment related net investment also recorded accumulated comprehensive loss january 31 2018 january 31 2017 company ¥180 billion ¥10 billion respectively outstanding longterm debt designated hedge net investment japan well outstanding longterm debt £17 billion £25 billion january 31 2018 january 31 2017 respectively designated hedge net investment united kingdom nonderivative net investment hedges mature dates ranging july 2020 january 2039 cash flow instruments company party receive fixedrate pay fixedrate crosscurrency interest rate swaps hedge currency exposure associated forecasted payments principal interest certain nonus denominated debt swaps designated cash flow hedges currency risk related payments nonus denominated debt effective portion changes fair value derivatives designated cash flow hedges foreign exchange risk recorded accumulated comprehensive loss subsequently reclassified earnings period hedged forecasted transaction affects earnings hedged items recognized foreign currencydenominated liabilities remeasured spot exchange rates period assessment effectiveness measurement ineffectiveness based total changes related derivatives cash flows result amount reclassified earnings period includes amount offsets related transaction gain loss arising remeasurement adjustment earnings periods allocable portion initial spotforward difference associated hedging instrument cash flow instruments mature dates ranging april 2022 march 2034 financial statement presentation although subject master netting arrangements company offset derivative assets derivative liabilities consolidated balance sheets derivative instruments unrealized gain recorded companys consolidated balance sheets either current noncurrent assets based maturity date hedging instruments unrealized loss recorded either current noncurrent liabilities based maturity date refer note 7 net presentation companys derivative instruments companys derivative instruments well nonderivative debt instruments designated qualifying net investment hedges classified follows january 31 2018 2017 companys consolidated balance sheets realized gains losses related companys derivatives recorded interest net companys consolidated statements income amounts related companys derivatives expected reclassified accumulated comprehensive loss net income next 12 months significant note 9 taxes income taxes components income taxes follows summary provision income taxes follows december 22 2017 tax act enacted contains significant changes us income tax law effective 2018 tax act reduces us statutory tax rate 35 21 creates new taxes focused foreignsourced earnings relatedparty payments including creation base erosion antiabuse tax new tax global intangible lowtaxed income gilti operation law company apply blended us statutory federal income tax rate 338 fiscal 2018 addition company subject onetime transition tax fiscal 2018 accumulated foreign subsidiary earnings previously subject us income tax securities exchange commission sec staff issued sab 118 december 22 2017 allows companies record provisional amounts measurement period extend beyond one year enactment date due timing enactment complexity involved applying provisions tax act company made reasonable estimates effects recorded provisional amounts financial statements january 31 2018 accordance sab 118 company collects prepares necessary data interprets tax act additional guidance issued us treasury department irs standardsetting bodies company may make adjustments provisional amounts fiscal 2019 adjustments may materially impact companys provision income taxes effective tax rate period adjustments made accounting tax effects tax act completed measurement period provided sab 118 provisional amounts following income tax effects tax act recorded january 31 2018 subject change fiscal 2019 net tax benefit recognized fiscal 2018 related tax act 02 billion company completes analysis tax act incorporates additional guidance may issued us treasury department irs standardsetting bodies company may identify additional effects reflected january 31 2018 onetime transition tax act requires company pay us income taxes accumulated foreign subsidiary earnings previously subject us income tax rate 155 extent foreign cash certain net current assets defined tax act 80 remaining earnings company recorded provisional amount 19 billion additional income tax expense onetime transitional tax liability company recorded provisional amount based estimates completes analysis application effects tax act well finalize calculations surrounding components foreign subsidiaries subject transition tax including potential correlative adjustments deferred tax effects tax act reduces us statutory tax rate 35 21 years 2017 accordingly company remeasured deferred taxes january 31 2018 reflect reduced rate apply future periods deferred taxes settled realized company recognized deferred tax benefit 21 billion reflect reduced us tax rate effects tax act benefit associated remeasurement deferred taxes provisional january 31 2018 company continues gathering necessary information complete calculations company provisional adjustment respect gilti provision tax act company able make reasonable estimates related effects time company yet elected accounting policy determine whether recognize gilti period cost incurred recognize deferred taxes basis differences expected reverse effective income tax rate reconciliation companys effective income tax rate typically lower us statutory tax rate primarily benefits lowertaxed global operations including use global funding structures certain us tax credits discussed cash equivalents section companys significant accounting policies note 1 companys nonus income generally subject local country tax rates us statutory tax rate certain nonus earnings indefinitely reinvested outside us reconciliation significant differences us statutory tax rate effective income tax rate pretax income continuing operations follows deferred taxes company recorded provisional adjustment us deferred income taxes january 31 2018 reflect reduction us statutory tax rate 35 21 resulting tax act significant components companys deferred tax account balances follows deferred taxes noted classified follows companys consolidated balance sheets unremitted earnings company previously asserted unremitted earnings offshore permanently reinvested accordingly company record deferred taxes related outside basis differences associated foreign subsidiaries part tax reform enacted december 22 2017 company currently assessing impact new legislation turn impact assertion regarding potential future repatriation consideration provisional transition tax calculation deemed repatriation previously unremitted earnings company estimating provisional basis outside tax basis exceeds outside book basis foreign subsidiaries approximately 100 billion calculations completed regarding transition tax taking account timeline provided sab 118 company provide updated disclosures regarding potential changes previous assertions net operating losses tax credit carryforwards valuation allowances january 31 2018 company net operating loss capital loss carryforwards totaling approximately 67 billion carryforwards approximately 36 billion expire utilized various years 2038 remaining carryforwards expiration january 31 2018 companys provisional transition tax calculation fully utilized foreign tax credit carryforwards recoverability future tax deductions credits evaluated assessing adequacy future expected taxable income sources including taxable income prior carryback years reversal taxable temporary differences forecasted operating earnings available tax planning strategies extent company consider likely deferred tax asset recovered valuation allowance established extent valuation allowance established subsequently determined likely deferred tax assets recovered valuation allowance released company valuation allowances approximately 18 billion 15 billion january 31 2018 2017 respectively deferred tax assets associated primarily net operating loss carryforwards management determined likely deferred tax asset realized net activity valuation allowance fiscal 2018 related releases arising use deferred tax assets changes judgment regarding future realization deferred tax assets increases certain net operating losses deductible temporary differences arising fiscal 2018 decreases due operating loss expirations fluctuations currency exchange rates management believes likely remaining deferred tax assets fully realized uncertain tax positions benefits uncertain tax positions recorded companys consolidated financial statements determining morelikelythannot probability uncertain tax positions withstand challenge taxing authorities january 31 2018 2017 amount unrecognized tax benefits related continuing operations 10 billion 11 billion respectively amount unrecognized tax benefits would affect companys effective income tax rate 690 million 703 million january 31 2018 2017 respectively reconciliation unrecognized tax benefits continuing operations follows company classifies interest penalties related uncertain tax benefits interest expense operating selling general administrative expenses respectively fiscal 2018 2017 2016 company recognized interest expense related uncertain tax positions 32 million 35 million 5 million respectively january 31 2018 2017 accrued interest related uncertain tax positions 96 million 72 million respectively recorded companys consolidated balance sheets january 31 2018 accrued penalties related uncertain tax positions 12 million recorded companys consolidated balance sheets january 31 2017 accrued penalties related uncertain tax positions recorded companys consolidated balance sheets next twelve months reasonably possible tax audit resolutions could reduce unrecognized tax benefits 50 million 400 million either tax positions sustained audit company agrees disallowance company focused resolving tax audits expeditiously possible result efforts unrecognized tax benefits could potentially reduced beyond provided range next twelve months company expect change material impact consolidated financial statements company remains subject income tax examinations us federal income taxes generally fiscal 2013 2018 company also remains subject income tax examinations international income taxes fiscal 2011 2018 us state local income taxes generally fiscal years ended 2013 2018 taxes company subject tax examinations value added salesbased payroll nonincome taxes number examinations ongoing various jurisdictions certain cases company received assessments respective taxing authorities connection examinations unless otherwise indicated possible losses range possible losses associated matters individually immaterial group related matters decided adversely company could result liability material companys consolidated financial statements particular brazil federal state local laws complex subject varying interpretations companys subsidiaries brazil party large number nonincome tax assessments one interpretations common retail industry brazil relates whether credits received suppliers treated reduction cost purposes calculating certain indirect taxes company believes credits received suppliers reductions cost substantial legal defenses matter intends defend matter vigorously company accrued matter although company may required deposit funds escrow secure financial guarantees continue judicial process defending matter brazil note 10 contingencies legal proceedings company involved number legal proceedings company made accruals respect matters appropriate reflected companys consolidated financial statements matters liability probable amount cannot reasonably estimated therefore accrual made however liability reasonably possible may material matters disclosed company may enter discussions regarding settlement matters may enter settlement agreements believes settlement best interest company shareholders unless stated otherwise matters discussed decided adversely settled company individually aggregate may result liability material companys financial condition results operations asda equal value claims asda stores ltd asda whollyowned subsidiary company defendant 10000 equal value claims proceeding employment tribunal manchester employment tribunal united kingdom uk behalf current former asda store employees claims may asserted future claimants allege work performed female employees asdas retail stores equal value terms among things demands jobs compared male employees working asdas warehouse distribution facilities disparity pay different job positions objectively justified result claimants requesting differential back pay based higher wage rates warehouse distribution facilities higher wage rates prospective basis march 23 2015 asda asked employment tribunal stay proceedings strike substantially claims claimants adhered tribunals procedural rule including multiple claimants claim form july 23 2015 employment tribunal denied asdas requests following additional proceedings june 20 2017 employment appeal tribunal ruled favor asda strike issue remitted matter employment tribunal determine whether improperly filed claims struck july 12 2017 claimants sought permission court appeals appeal ruling granted october 3 2017 hearing court appeals scheduled october 23 2018 initial phase equal value claims october 14 2016 following preliminary hearing employment tribunal ruled claimants could compare positions asdas retail stores employees asdas warehouse distribution facilities august 31 2017 employment appeal tribunal affirmed employment tribunals ruling employment appeal tribunal also granted permission asda appeal substantially findings august 31 2017 asda sought permission appeal remainder employment appeal tribunals findings court appeals september 21 2017 hearing court appeals scheduled october 10 2018 claimants proceeding next phase claims phase determine whether work performed claimants equal value work performed employees asdas warehouse distribution facilities present company cannot predict number claims may filed cannot reasonably estimate loss range loss may arise proceedings company believes substantial factual legal defenses claims intends defend claims vigorously national prescription opiate litigation december 2017 united states judicial panel multidistrict litigation ordered consolidated numerous lawsuits filed wide array defendants various plaintiffs including counties cities healthcare providers native american tribes individuals thirdparty payors asserting claims generally concerning impacts widespread opioid abuse consolidated multidistrict litigation entitled national prescription opiate litigation mdl 2804 pending us district court northern district ohio company named defendant cases included multidistrict litigation including cases filed several counties west virginia healthcare providers mississippi alabama texas florida st croix chippewa indians wisconsin similar cases name company filed state courts various counties municipalities health care providers various native american tribes company cannot predict number claims may filed cannot reasonably estimate loss range loss may arise claims company believes substantial factual legal defenses claims intends defend claims vigorously fcpa investigation related matters audit committee audit committee board directors company conducting internal investigation among things alleged violations us foreign corrupt practices act fcpa alleged crimes misconduct connection foreign subsidiaries including walmart de méxico sab de cv walmex whether prior allegations violations andor misconduct appropriately handled company audit committee company engaged outside counsel number law firms advisors assisting ongoing investigation matters company also conducting voluntary global review policies practices internal controls anticorruption compliance company engaged strengthening global anticorruption compliance program appropriate remedial anticorruption measures november 2011 company voluntarily disclosed investigative activity us department justice doj securities exchange commission sec since implementation global review enhanced anticorruption compliance program audit committee company identified made aware additional allegations regarding potential violations fcpa allegations reported identified audit committee company together third party advisors conducted inquiries warranted based inquiries opened investigations inquiries investigations regarding allegations potential fcpa violations commenced number foreign markets company operates including limited brazil china india previously disclosed company investigation doj sec regarding possible violations fcpa company cooperating agencies discussions ongoing regarding resolution matters discussions progressed point company reasonably estimate probable loss recorded aggregate accrual 283 million respect matters accrual discussions continuing assurance timing terms final resolution matters number federal local government agencies mexico also initiated investigations matters walmex cooperating mexican governmental agencies conducting investigations furthermore lawsuits relating matters investigation filed several companys shareholders certain current directors certain former directors certain former officers certain walmexs former officers company could exposed variety negative consequences result matters noted could one enforcement actions respect matters subject ongoing government investigations actions brought may result judgments settlements fines penalties injunctions cease desist orders debarment relief criminal convictions andor penalties shareholder lawsuits referenced may result judgments company current former directors officers named proceedings company expects ongoing media governmental interest including additional news articles media publications matters could impact perception among certain audiences companys role corporate citizen addition company incurred expects continue incur costs responding requests information subpoenas seeking documents testimony information connection government investigations defending shareholder lawsuits conducting review investigations costs expensed incurred fiscal years ended january 31 2018 2017 2016 company incurred following thirdparty expenses connection fcpa investigation related matters company presently believe matters including accrual payment accrual pointintime future material adverse effect business although given inherent uncertainties situations company provide assurance matters material business future note 11 commitments company longterm leases stores equipment rentals including amounts applicable taxes insurance maintenance operating expenses contingent rentals operating leases shortterm rental arrangements 29 billion 26 billion 25 billion fiscal 2018 2017 2016 respectively aggregate minimum annual rentals january 31 2018 noncancelable leases follows 1 represents minimum contractual obligation noncancelable leases initial remaining terms greater 12 months january 31 2018 certain companys leases provide payment contingent rentals based percentage sales contingent rentals material fiscal 2018 2017 2016 substantially companys store leases renewal options may trigger escalation rentals note 12 retirementrelated benefits company offers 401k plan associates us eligible associates begin contributing plan immediately upon hire company also offers 401k type plan associates puerto rico associates begin contribute generally one year employment plans one year employment company matches 100 participant contributions 6 annual eligible earnings matching contributions immediately vest 100 associate participants contribute 50 pretax earnings statutory limits associates international countries us citizens covered various defined contribution postemployment benefit arrangements plans administered based upon legislative tax requirements countries established following table summarizes contribution expense related companys defined contribution plans fiscal 2018 2017 2016 additionally companys subsidiaries united kingdom japan sponsored defined benefit pension plans plan united kingdom overfunded 97 million january 31 2018 underfunded 129 million january 31 2017 plan japan underfunded 184 million 203 million january 31 2018 2017 respectively overfunded amounts recorded assets companys consolidated balance sheets assets deferred charges underfunded amounts recorded liabilities companys consolidated balance sheets deferred income taxes certain international operations also defined benefit arrangements significant note 13 acquisitions disposals related items jetcom transaction discussed company completed certain ecommerce acquisitions fiscal 2018 2017 immaterial individually aggregate companys consolidated financial statements following significant transaction primarily impacts operations companys walmart us segment jetcom inc september 2016 company completed acquisition jetcom usbased ecommerce company integration jetcom walmart us segment building upon current ecommerce foundation allowing synergies talent logistical operations access broader customer base total purchase price acquisition 24 billion net cash acquired allocation purchase price includes 17 billion goodwill 06 billion intangible assets part transaction company agreed pay additional compensation approximately 08 billion five year period following significant transactions impact operations companys walmart international segment suburbia april 2017 one companys subsidiaries sold suburbia apparel retail division mexico 10 billion part sales agreement company also leasing certain real estate purchaser sale resulted pretax gain 07 billion 04 billion recognized second quarter fiscal 2018 membership income remainder deferred recognized lease terms approximately 20 years yihaodian jdcom inc jd june 2016 company sold certain assets relating yihaodian ecommerce operations china including yihaodian brand website application jd exchange class ordinary shares jd representing approximately five percent jds outstanding ordinary shares fully diluted basis 15 billion investment jd carried cost included assets deferred charges accompanying consolidated balance sheets sale resulted recognition 535 million noncash gain included membership income accompanying consolidated statements income subsequently fiscal 2017 company purchased 19 billion additional jd shares classified available sale securities representing incremental ownership percentage approximately five percent total ownership approximately ten percent jds outstanding ordinary shares fiscal 2016 company completed purchase remaining noncontrolling interest yihaodian approximately 760 million using existing cash complete transaction note 14 restructuring charges fourth quarter fiscal 2018 company announced several organizational changes position business efficient growth going forward result company recorded 12 billion pretax restructuring charges fiscal 2018 follows asset impairment charges primarily relate real estate sams club closures winddown brazil firstparty ecommerce business written estimated fair value refer note 7 information fair value measurement pretax restructuring charges 12 billion classified operating selling general administrative expenses companys consolidated statement income fiscal 2018 january 31 2018 substantially severances costs recorded accrued liabilities companys consolidated balance sheet almost severance costs expected paid first quarter fiscal 2019 note 15 segments company engaged operation retail wholesale units well ecommerce websites located throughout us africa argentina brazil canada central america chile china india japan mexico united kingdom companys operations conducted three reportable segments walmart us walmart international sams club company defines segments operations whose results chief operating decision maker codm regularly reviews analyze performance allocate resources company sells similar individual products services segments impractical segregate identify revenues individual products services walmart us segment includes companys mass merchant concept us operating walmart brands well ecommerce walmart international segment consists companys operations outside us including ecommerce sams club segment includes warehouse membership clubs us well samsclubcom corporate support consists corporate overhead items allocated companys segments company measures results segments using among measures segments net sales operating income includes certain corporate overhead allocations time company revises measurement segments operating income including corporate overhead allocations determined information regularly reviewed codm measurement segment changes previous period amounts balances reclassified comparable current periods presentation information companys segments well corporate support including reconciliation income taxes provided following table total revenues consisting net sales membership income longlived assets consisting primarily property equipment net aggregated companys us nonus operations fiscal 2018 2017 2016 follows individual country outside us total revenues longlived assets material consolidated totals additionally company generate material total revenues single customer note 16 subsequent event dividends declared february 20 2018 board directors approved fiscal 2019 annual dividend 208 per share increase fiscal 2018 dividend 204 per share fiscal 2019 annual dividend paid four quarterly installments 052 per share according following record payable dates note 17 quarterly financial data unaudited 1 sum quarterly amounts may agree annual amount due rounding impact decreasing amount shares outstanding year item 9item 8 financial statements supplementary data consolidated financial statements walmart inc fiscal year ended january 31 2019 report independent registered public accounting firm shareholders board directors walmart inc opinion financial statements audited accompanying consolidated balance sheets walmart inc company january 31 2019 2018 related consolidated statements income comprehensive income shareholders equity cash flows three years period ended january 31 2019 related notes collectively referred consolidated financial statements opinion consolidated financial statements present fairly material respects financial position company january 31 2019 2018 results operations cash flows three years period ended january 31 2019 conformity us generally accepted accounting principles also audited accordance standards public company accounting oversight board united states pcaob companys internal control financial reporting january 31 2019 based criteria established internal controlintegrated framework issued committee sponsoring organizations treadway commission 2013 framework report dated march 28 2019 expressed unqualified opinion thereon adoption asu 201601 discussed note 1 consolidated financial statements company changed method measuring certain equity investments fair value recognizing change fair value net income effective february 1 2018 due adoption accounting standards update “asu” 201601 financial instrumentsoverall topic 825 basis opinion financial statements responsibility companys management responsibility express opinion company’s financial statements based audits public accounting firm registered pcaob required independent respect company accordance us federal securities laws applicable rules regulations securities exchange commission pcaob conducted audits accordance standards pcaob standards require plan perform audit obtain reasonable assurance whether financial statements free material misstatement whether due error fraud audits included performing procedures assess risks material misstatement financial statements whether due error fraud performing procedures respond risks procedures included examining test basis evidence regarding amounts disclosures financial statements audits also included evaluating accounting principles used significant estimates made management well evaluating overall presentation financial statements believe audits provide reasonable basis opinion ernst young llp served companys auditor since 1969 rogers arkansas march 28 2019 report independent registered public accounting firm shareholders board directors walmart inc opinion internal control financial reporting audited walmart incs internal control financial reporting january 31 2019 based criteria established internal controlintegrated framework issued committee sponsoring organizations treadway commission 2013 framework coso criteria opinion walmart inc company maintained material respects effective internal control financial reporting january 31 2019 based coso criteria indicated accompanying report internal control financial reporting management’s assessment conclusion effectiveness internal control financial reporting include internal controls flipkart private limited “flipkart” except recognition goodwill intangible assets included management’s assessment flipkart included 2019 consolidated financial statements company constituted approximately 2 company’s total assets january 31 2019 excluding goodwill intangible assets recorded approximately 1 company’s net sales year ended january 31 2019 accordingly audit internal control financial reporting company also include evaluation internal control financial reporting flipkart except recognition goodwill intangible assets also audited accordance standards public company accounting oversight board united states pcaob accompanying consolidated balance sheets walmart inc january 31 2019 2018 related consolidated statements income comprehensive income shareholders equity cash flows three years period ended january 31 2019 related notes report dated march 28 2019 expressed unqualified opinion thereon basis opinion company’s management responsible maintaining effective internal control financial reporting assessment effectiveness internal control financial reporting included accompanying report internal control financial reporting responsibility express opinion company’s internal control financial reporting based audit public accounting firm registered pcaob required independent respect company accordance us federal securities laws applicable rules regulations securities exchange commission pcaob conducted audit accordance standards pcaob standards require plan perform audit obtain reasonable assurance whether effective internal control financial reporting maintained material respects audit included obtaining understanding internal control financial reporting assessing risk material weakness exists testing evaluating design operating effectiveness internal control based assessed risk performing procedures considered necessary circumstances believe audit provides reasonable basis opinion definition limitations internal control financial reporting company’s internal control financial reporting process designed provide reasonable assurance regarding reliability financial reporting preparation financial statements external purposes accordance generally accepted accounting principles company’s internal control financial reporting includes policies procedures 1 pertain maintenance records reasonable detail accurately fairly reflect transactions dispositions assets company 2 provide reasonable assurance transactions recorded necessary permit preparation financial statements accordance generally accepted accounting principles receipts expenditures company made accordance authorizations management directors company 3 provide reasonable assurance regarding prevention timely detection unauthorized acquisition use disposition company’s assets could material effect financial statements inherent limitations internal control financial reporting may prevent detect misstatements also projections evaluation effectiveness future periods subject risk controls may become inadequate changes conditions degree compliance policies procedures may deteriorate ernst young llp rogers arkansas march 28 2019 walmart inc consolidated statements income see accompanying notes walmart inc consolidated statements comprehensive income see accompanying notes walmart inc consolidated balance sheets see accompanying notes walmart inc consolidated statements shareholders equity see accompanying notes walmart inc consolidated statements cash flows see accompanying notes walmart inc notes consolidated financial statements note 1 summary significant accounting policies general walmart inc walmart company helps people around world save money live better anytime anywhere providing opportunity shop retail stores ecommerce innovation company striving continuously improve customercentric experience seamlessly integrates ecommerce retail stores omnichannel offering saves time customers week company serves 275 million customers visit 11300 stores numerous ecommerce websites 58 banners 27 countries companys operations comprise three reportable segments walmart us walmart international sams club principles consolidation consolidated financial statements include accounts walmart subsidiaries fiscal years ended january 31 2019 fiscal 2019 january 31 2018 fiscal 2018 january 31 2017 fiscal 2017 intercompany accounts transactions eliminated consolidation company consolidates variable interest entities determined company primary beneficiary entities operations investments company exercises significant influence control accounted equity method variable interest entities equity method investments immaterial companys consolidated financial statements companys consolidated financial statements based fiscal year ending january 31 united states us canadian operations company consolidates operations generally using onemonth lag based calendar year significant intervening events month january 2019 related operations consolidated using lag materially affected consolidated financial statements use estimates consolidated financial statements prepared conformity us generally accepted accounting principles require management make estimates assumptions affect reported amounts assets liabilities managements estimates assumptions also affect disclosure contingent assets liabilities date financial statements reported amounts revenues expenses reporting period actual results may differ estimates cash equivalents company considers investments maturity purchased three months less cash equivalents credit card debit card electronic transfer transactions process less seven days classified cash equivalents amounts due banks transactions classified cash equivalents totaled 14 billion 16 billion january 31 2019 2018 respectively companys cash balances held various locations around world substantially companys 77 billion 68 billion cash equivalents january 31 2019 january 31 2018 held outside us cash equivalents held outside us generally utilized support liquidity needs companys nonus operations company uses intercompany financing arrangements effort ensure cash made available country needed minimum cost possible fiscal 2019 company repatriated us 53 billion cash tax cost approximately 40 million january 31 2019 2018 cash equivalents approximately 28 billion 14 billion respectively may freely transferable us due local laws restrictions 28 billion january 31 2019 approximately 12 billion accessed dividends intercompany financing arrangements subject approval flipkart private limited flipkart minority shareholders however cash expected utilized fund operations flipkart restricted cash november 2016 fasb issued asu 201618 statement cash flowsrestricted cash topic 230 requires restricted cash included cash equivalents reconciling beginning ending amounts statement cash flows company adopted asu february 1 2018 restricted cash held outside cash equivalents 34 million january 31 2019 primarily recorded prepaid expenses consolidated balance sheets 300 million january 31 2018 primarily recorded longterm assets consolidated balance sheets receivables stated carrying values net reserve doubtful accounts primarily due following insurance companies resulting pharmacy sales banks customer credit debit cards electronic bank transfers take excess seven days process governments income taxes suppliers marketing incentive programs real estate transactions inventories company values inventories lower cost market determined primarily retail inventory method accounting using lastin firstout lifo method walmart us segments inventories inventory walmart international segment valued primarily retail inventory method accounting using firstin firstout fifo method retail inventory method accounting results inventory valued lower cost market since permanent markdowns immediately recorded reduction retail value inventory sams club segment valued using weightedaverage cost lifo method january 31 2019 january 31 2018 companys inventories valued lifo approximated inventories valued fifo assets held sale assets held sale represent components businesses meet accounting requirements classified held sale presented single asset liability amounts companys financial statements valuation allowance necessary recognize net carrying amount lower cost fair value less costs sell company reviews businesses assets held sale reporting period determine whether existing carrying amounts fully recoverable comparison estimated fair values january 31 2019 january 31 2018 immaterial amounts assets liabilities held sale classified prepaid expenses accrued liabilities respectively consolidated balance sheets property equipment property equipment initially recorded cost gains losses disposition recognized earned incurred costs major improvements capitalized costs normal repairs maintenance expensed incurred following table summarizes companys property equipment balances includes estimated useful lives generally used depreciate assets straightline basis leasehold improvements depreciated amortized shorter estimated useful life asset remaining expected lease term total depreciation amortization expense property equipment property financing obligations property capital leases intangible assets fiscal 2019 2018 2017 107 billion 105 billion 101 billion respectively leases company leases land buildings fixtures equipment transportation equipment company estimates expected lease term assuming exercise renewal options economic penalty exists would preclude abandonment lease end initial noncancelable term exercise renewal sole discretion company expected lease term used determination whether store club lease capital operating lease calculation straightline rent expense additionally useful life leasehold improvements limited expected lease term economic life asset whichever shorter significant expenditures made leasehold improvements late expected lease term renewal reasonably assured useful life leasehold improvement limited end renewal period economic life asset whichever shorter rent abatements escalations considered calculation minimum lease payments companys capital lease tests determining straightline rent expense operating leases company often involved construction leased stores certain cases payments made certain structural components included lessors construction leased assets result company deemed owner leased assets accounting purposes result payments regardless significance automatic indicators ownership require company capitalize lessors total project cost corresponding financing obligation upon completion lessors project company performs saleleaseback analysis determine assets related financing obligation derecognized companys consolidated balance sheets company deemed continuing involvement leased assets related financing obligation remain companys consolidated balance sheets generally amortized lease term end lease term including exercise renewal options net remaining financing obligation net carrying value fixed asset recognized noncash gain longlived assets longlived assets initially recorded cost management reviews longlived assets indicators impairment whenever events changes circumstances indicate carrying amount may recoverable evaluation performed lowest level identifiable cash flows individual store club level undiscounted cash flows expected generated related assets estimated assets useful lives based updated projections evaluation indicates carrying amount assets may recoverable potential impairment measured based upon fair value related asset group determined appropriate market appraisal valuation technique goodwill acquired intangible assets goodwill represents excess purchase price fair value net assets acquired business combinations allocated appropriate reporting unit acquired intangible assets stated fair value acquired determined valuation technique commensurate intended use related asset goodwill indefinitelived intangible assets amortized rather evaluated impairment annually whenever events changes circumstances indicate value asset may impaired definitelived intangible assets considered longlived assets amortized straightline basis periods expected economic benefits provided goodwill assigned reporting unit consolidates acquisition components within reportable segment aggregated deemed single reporting unit components similar economic characteristics january 31 2019 companys reporting units consisted walmart us walmart international sams club goodwill evaluated impairment using either qualitative quantitative approach companys reporting units generally qualitative assessment first performed determine whether quantitative goodwill impairment test necessary management determines performing assessment based qualitative factors fair value reporting unit likely less carrying amount fair value reporting unit substantially excess carrying amount cannot assured quantitative goodwill impairment test would required quantitative test goodwill impairment performed determining fair value related reporting units fair value measured based discounted cash flow method relative marketbased approaches evaluation management determined fair value reporting unit greater carrying amount accordingly company recorded impairment charges related goodwill following table reflects goodwill activity reportable segment fiscal 2019 2018 1 goodwill recorded fiscal 2019 walmart international relates flipkart intangible assets included longterm assets companys consolidated balance sheets assets evaluated impairment based fair values using valuation techniques updated annually based recent variables assumptions significant impairment charges related intangible assets fiscal 2019 2018 2017 fair value measurement january 2016 financial accounting standards board fasb issued accounting standards update asu 201601 financial instrumentsoverall topic 825 updated certain aspects recognition measurement presentation disclosure financial instruments asu 201601 company adopted asu february 1 2018 primarily impacted companys accounting investment jdcom inc jd resulted positive adjustment retained earnings approximately 26 billion net tax based market value companys investment jd january 31 2018 adoption required prospective changes fair value companys investment jd recorded consolidated statement income company classifies gains losses company records discloses certain financial nonfinancial assets liabilities fair value fair value asset price asset could sold orderly transaction unrelated knowledgeable willing parties able engage transaction fair value liability amount would paid transfer liability new obligor transaction parties amount would paid settle liability creditor self insurance reserves company selfinsures number risks including limited workers compensation general liability auto liability product liability certain employeerelated healthcare benefits standard actuarial procedures data analysis used estimate liabilities associated risks balance sheet date undiscounted basis recorded liabilities reflect ultimate cost claims incurred paid estimable administrative runout expenses related processing outstanding claim payments regular basis liabilities evaluated appropriateness claims reserve valuations limit exposure risks company maintains insurance coverage varying limits retentions including stoploss insurance coverage workers compensation general liability auto liability derivatives company uses derivatives hedging purposes manage exposure changes interest currency exchange rates well maintain appropriate mix fixed variablerate debt use derivatives hedging programs subjects company certain risks market credit risks market risk represents possibility value derivatives change hedging relationship change value derivative offset great extent change value underlying hedged item credit risk related derivative represents possibility counterparty fulfill terms contract credit risk monitored established approval procedures including setting concentration limits counterparty reviewing credit ratings requiring collateral counterparty appropriate company enters derivatives counterparties rated better nationally recognized credit rating agencies subsequent entering derivatives company regularly monitors credit ratings counterparties notional contractual amount companys derivatives used measure interest paid received represent companys exposure due credit risk contractual terms companys derivatives closely mirror hedged items providing high degree risk reduction correlation contracts effective meeting risk reduction correlation criteria recorded using hedge accounting derivative recorded using hedge accounting depending nature hedge changes fair value either offset change fair value hedged assets liabilities firm commitments earnings recognized accumulated comprehensive loss hedged item recognized earnings hedge ineffectiveness immediately recognized earnings companys net investment cash flow hedges highly effective ineffective portion expected significant derivatives meet criteria hedge accounting contracts company elected hedge accounting recorded fair value unrealized gains losses reported earnings period change fair value hedges company party receive fixedrate pay variablerate interest rate swaps company uses hedge fair value fixedrate debt notional amounts used measure interest paid received represent companys exposure due credit loss companys interest rate swaps receive fixedinterest rate payments pay variableinterest rate payments designated fair value hedges specific terms notional amounts derivatives match fixedrate debt hedged derivatives assumed perfectly effective hedges changes fair values derivatives recorded earnings offset corresponding changes fair values hedged items also recorded earnings accordingly impact companys consolidated statements income derivatives mature dates ranging october 2020 april 2024 net investment hedges company party crosscurrency interest rate swaps company uses hedge net investments agreements contracts exchange fixedrate payments one currency fixedrate payments another currency changes fair value derivatives recorded accumulated comprehensive loss offsetting currency translation adjustment related investment also recorded accumulated comprehensive loss derivatives mature dates ranging july 2020 february 2030 company issued foreigncurrencydenominated longterm debt hedges net investments certain foreign operations foreigncurrencydenominated longterm debt issuances designated qualify nonderivative hedging instruments accordingly foreign currency translation debt instruments recorded accumulated comprehensive loss offsetting foreign currency translation adjustment related net investment also recorded accumulated comprehensive loss cash flow hedges company party receive fixedrate pay fixedrate crosscurrency interest rate swaps hedge currency exposure associated forecasted payments principal interest certain nonus denominated debt swaps designated cash flow hedges currency risk related payments nonus denominated debt effective portion changes fair value derivatives designated cash flow hedges foreign exchange risk recorded accumulated comprehensive loss subsequently reclassified earnings period hedged forecasted transaction affects earnings hedged items recognized foreign currencydenominated liabilities remeasured spot exchange rates period assessment effectiveness measurement ineffectiveness based total changes related derivatives cash flows result amount reclassified earnings period includes amount offsets related transaction gain loss arising remeasurement adjustment earnings periods allocable portion initial spotforward difference associated hedging instrument derivatives mature dates ranging april 2022 march 2034 financial statement presentation realized derivative gains losses recorded interest net companys consolidated statements income although subject master netting arrangements company offset derivative assets liabilities consolidated balance sheets derivatives unrealized gain recorded companys consolidated balance sheets either current noncurrent assets based maturity date derivatives unrealized loss recorded either current noncurrent liabilities based maturity date refer note 7 net presentation companys derivatives additionally company records cash collateral received amounts due counterparties exclusive derivative asset records cash collateral posts counterparties amounts receivable counterparties exclusive derivative liability income taxes income taxes accounted balance sheet method deferred tax assets liabilities recognized estimated future tax consequences attributable differences financial statement carrying amounts existing assets liabilities respective tax bases temporary differences deferred tax assets liabilities measured using enacted tax rates effect year temporary differences expected recovered settled effect deferred tax assets liabilities change tax rate recognized income period includes enactment date deferred tax assets evaluated future realization reduced valuation allowance extent portion likely realized many factors considered assessing whether likely deferred tax assets realized including recent cumulative earnings expectations future taxable income carryforward periods relevant quantitative qualitative factors recoverability deferred tax assets evaluated assessing adequacy future expected taxable income sources including reversal taxable temporary differences forecasted operating earnings available tax planning strategies sources income rely heavily estimates tax cuts jobs act contains provision subjects us parent foreign subsidiary current us tax global intangible lowtaxed income “gilti” gilti income eligible deduction lowers effective tax rate 105 calendar years 2018 2025 13125 2025 company report tax impact gilti period cost incurred accordingly company providing deferred taxes basis differences expected reverse gilti determining provision income taxes annual effective income tax rate used based annual income permanent differences book tax income statutory income tax rates discrete events audit settlements changes tax laws recognized period occur company records liability unrecognized tax benefits resulting uncertain tax positions taken expected taken tax return company records interest penalties related unrecognized tax benefits interest expense operating selling general administrative expenses respectively companys consolidated statements income refer note 9 additional income tax disclosures february 2018 fasb issued asu 201802 income statementreporting comprehensive income topic 220 reclassification certain tax effects accumulated comprehensive income asu 201802 asu provides stranded tax effects tax cuts jobs act 2017 tax act accumulated comprehensive loss may reclassified retained earnings company adopted asu february 1 2018 resulted immaterial negative adjustment retained earnings revenue recognition may 2014 fasb issued asu 201409 revenue contracts customers topic 606 asu comprehensive new revenue recognition model requires company recognize revenue depict transfer goods services customer amount reflects consideration expects receive exchange goods services company adopted asu february 1 2018 using modified retrospective approach applied asu contracts completed february 1 2018 accounting policies disclosures well disclosure disaggregated revenues note 15 impact adopting asu material consolidated financial statements net sales company recognizes sales revenue net sales taxes estimated sales returns time sells merchandise customer ecommerce sales include shipping revenue recorded upon delivery customer additionally estimated sales returns calculated based expected returns membership fee revenue company recognizes membership fee revenue us internationally term membership typically 12 months membership fee revenue 14 billion fiscal 2019 2018 2017 respectively membership fee revenue included membership income companys consolidated statements income deferred membership fee included accrued liabilities companys consolidated balance sheets gift cards customer purchases gift cards recognized sales card redeemed customer purchases merchandise using gift card gift cards us countries carry expiration date therefore customers members redeem gift cards merchandise services indefinitely gift cards countries company business expiration dates gift cards generally redeemed within 12 months certain number gift cards without expiration dates fully redeemed management estimates unredeemed balances recognizes revenue amounts membership income companys consolidated statements income expected redemption period management periodically reviews updates estimates financial services company recognizes revenue service transactions time service performed generally revenue services classified component net sales companys condensed consolidated statements income contract balances contract balances result transactions customers primarily consist receivables included receivables net deferred gift card revenue included accrued liabilities companys condensed consolidated balance sheets following table provides companys receivables deferred gift card revenue transactions customers cost sales cost sales includes actual product cost transportation companys distribution facilities stores clubs suppliers cost transportation companys distribution facilities stores clubs customers cost warehousing sams club segment import distribution centers cost sales reduced supplier payments reimbursement specific incremental identifiable costs payments suppliers company receives consideration suppliers various programs primarily volume incentives warehouse allowances reimbursements specific programs markdowns margin protection advertising supplierspecific fixtures payments suppliers accounted reduction cost sales except certain limited situations payment reimbursement specific incremental identifiable costs recognized companys consolidated statements income related inventory sold operating selling general administrative expenses operating selling general administrative expenses include operating costs company except cost sales described result majority cost warehousing occupancy walmart us walmart international segments distribution facilities included operating selling general administrative expenses company includes portion cost walmart us walmart international segments distribution facilities cost sales gross profit gross profit percentage net sales may comparable retailers may include costs related distribution facilities cost sales calculation gross profit advertising costs advertising costs expensed incurred consist primarily print television digital advertisements recorded operating selling general administrative expenses companys consolidated statements income certain limited situations reimbursements suppliers specific incremental identifiable advertising costs recognized reduction advertising costs operating selling general administrative expenses advertising costs 35 billion 31 billion 29 billion fiscal 2019 2018 2017 respectively currency translation assets liabilities international subsidiaries translated respective local currency us dollar using exchange rates balance sheet date related translation adjustments recorded component accumulated comprehensive loss companys consolidated statements income international subsidiaries translated respective local currencies us dollar using average exchange rates period covered income statements recent accounting pronouncements leases february 2016 fasb issued asu 201602 leases topic 842 requires lease assets liabilities recorded balance sheet certain qualitative quantitative disclosures also required company adopt asu related amendments beginning first quarter year ending january 31 2020 fiscal 2020 electing certain practical expedients permitted transition guidance including retain historical lease classification well relief reviewing expired existing contracts determine contain leases company exempting leases initial term twelve months less balance sheet recognition classes assets company combining nonlease components lease components management implemented continues implement new lease systems connection adoption asu related amendments result total assets liabilities increasing approximately 15 billion primarily due recognizing approximately 175 billion operating lease assets liabilities partially offset derecognizing approximately 3 billion assets liabilities related financial obligations connected construction leased stores several line items company’s consolidated balance sheet also impacted immaterial amounts company’s consolidated statements income consolidated statements cash flows materially impacted finally management expects first quarter fiscal 2020 disclosure future operating commitments significantly increase compared aggregate minimum rentals disclosed note 11 primarily new standard requires reasonably assured renewals included financial instruments june 2016 fasb issued asu 201613 financial instrumentscredit losses topic 326 modifies measurement expected credit losses certain financial instruments company adopt asu february 1 2020 management currently evaluating asu determine impact companys consolidated financial statements note 2 net income per common share basic net income per common share attributable walmart based weightedaverage common shares outstanding relevant period diluted net income per common share attributable walmart based weightedaverage common shares outstanding relevant period adjusted dilutive effect sharebased awards company significant sharebased awards outstanding antidilutive included calculation diluted net income per common share attributable walmart fiscal 2019 2018 2017 following table provides reconciliation numerators denominators used determine basic diluted net income per common share attributable walmart note 3 shareholders equity total authorized shares 010 par value common stock 110 billion 29 billion 30 billion issued outstanding january 31 2019 2018 respectively sharebased compensation company awarded sharebased compensation associates nonemployee directors company compensation expense recognized stock incentive plans including expense associated plans companys consolidated subsidiaries granted subsidiaries respective stock 773 million 626 million 596 million fiscal 2019 2018 2017 respectively sharebased compensation expense generally included operating selling general administrative expenses companys consolidated statements income total income tax benefit recognized sharebased compensation 181 million 150 million 212 million fiscal 2019 2018 2017 respectively following table summarizes companys sharebased compensation expense award type plans walmart inc stock incentive plan 2015 plan amended restated effective february 23 2016 amended february 1 2017 renamed february 1 2018 established grant stock options restricted nonvested stock performance share units equity compensation awards 260 million shares walmart common stock issued plan registered securities act 1933 amended company believes awards serve align interests associates shareholders plans award types summarized follows • restricted stock performance share units restricted stock awards shares vest based passage time include restrictions related employment performance share units vest based passage time achievement performance criteria may range 0 150 original award amount vesting periods awards generally one three years restricted stock performance share units may settled deferred stock accounted equity companys consolidated balance sheets fair value restricted stock awards determined date grant expensed ratably vesting period fair value performance share units determined date grant using companys stock price discounted expected dividend yield vesting period recognized vesting period weightedaverage discount dividend yield used determine fair value performance share units fiscal 2019 2018 2017 62 72 83 respectively • restricted stock units restricted stock units provide rights company stock specified service period generally 50 vest three years grant date remaining 50 vest five years grant date fair value restricted stock unit determined date grant using stock price discounted expected dividend yield vesting period recognized ratably vesting period expected dividend yield based anticipated dividends vesting period weightedaverage discount dividend yield used determine fair value restricted stock units granted fiscal 2019 2018 2017 72 90 respectively addition plan companys united kingdom subsidiary stock option plans certain colleagues generally vest three years stock option sharebased compensation expense included line table flipkart also maintains stock option plan primarily benefit employees nonemployee directors options acquire flipkart common shares may issued grants exercise price compensation expense recognized fiscal 2019 due liquidity event performance condition deemed probable occurrence following table shows activity restricted stock performance share units restricted stock units fiscal 2019 1 assumes payout rate 100 performance share units following table includes additional information related restricted stock performance share units restricted stock units share repurchase program time company repurchases shares common stock share repurchase programs authorized companys board directors repurchases made fiscal year 2019 made current 200 billion share repurchase program approved october 2017 expiration date restrictions limiting period company make share repurchases january 31 2019 authorization 113 billion share repurchases remained share repurchase program repurchased shares constructively retired returned unissued status company regularly reviews share repurchase activity considers several factors determining execute share repurchases including among things current cash needs capacity leverage cost borrowings results operations market price companys common stock following table provides settlement date basis number shares repurchased average price paid per share total amount paid share repurchases fiscal 2019 2018 2017 note 4 accumulated comprehensive loss following table provides changes composition total accumulated comprehensive loss fiscal 2019 2018 2017 1 primarily relates adoption asu 201601 asu 201802 2 includes cumulative foreign currency translation loss 20 billion related income taxes upon sale majority stake walmart brazil see note 13 income tax impact amounts shown table immaterial amounts reclassified accumulated comprehensive loss derivatives recorded interest net companys consolidated statements income amounts minimum pension liability well cumulative translation resulting disposition business recorded gains losses companys consolidated statements income note 5 accrued liabilities companys accrued liabilities consist following january 31 2019 2018 1 accrued wages benefits include accrued wages salaries vacation bonuses incentive plans 2 selfinsurance consists insurancerelated liabilities workers compensation general liability auto liability product liability certain employeerelated healthcare benefits 3 accrued nonincome taxes include accrued payroll value added sales miscellaneous taxes 4 accrued liabilities consist various items maintenance utilities advertising interest legal contingencies note 6 shortterm borrowings longterm debt shortterm borrowings consist commercial paper lines credit shortterm borrowings january 31 2019 2018 52 billion 53 billion respectively weightedaverage interest rates 27 15 respectively company various committed lines credit us committed 22 financial institutions totaling 150 billion 125 billion january 31 2019 2018 respectively committed lines credit summarized following table 1 may 2018 company renewed extended existing fiveyear credit facility existing 364day revolving credit facility used support commercial paper program committed lines credit table mature various times may 2019 may 2023 carry interest rates generally ranging libor plus 10 basis points libor plus 75 basis points incur commitment fees ranging 15 40 basis points conjunction committed lines credit listed table company agreed observe certain covenants restrictive relates maximum amount secured debt additionally company also maintains committed lines credit outside us available amounts approximately 30 billion 40 billion january 31 2019 2018 respectively approximately 02 billion amount drawn january 31 2019 2018 respectively apart committed lines credit company syndicated fronted letters credit available totaling 18 billion january 31 2019 2018 16 billion 15 billion drawn january 31 2019 2018 respectively company also trade letters credit without stated limits 04 billion drawn january 31 2019 2018 companys longterm debt includes fair value instruments discussed note 8 consists following january 31 2019 2018 1 average rate represents weightedaverage stated rate corresponding debt category based yearend balances yearend interest rates interest costs also impacted certain derivatives described note 8 2 includes deferred loan costs discounts fair value hedges foreignheld debt secured debt january 31 2019 2018 company secured debt amount 8 million 10 million respectively collateralized property aggregate carrying amount 82 million 101 million respectively january 31 2018 company 500 million debt embedded put options bonds matured june 2018 fully repaid issuance money market puttable reset securities amount 500 million structured remarketed connection annual reset interest rate reason remarketing notes occur time interest rate reset holders notes must sell company must repurchase notes par accordingly january 31 2018 issuance classified longterm debt due within one year companys consolidated balance sheets annual maturities longterm debt next five years thereafter follows debt issuances information longterm debt issued fiscal 2019 fund portion purchase price flipkart acquisition discussed note 13 general corporate purposes follows june 2018 issuances senior unsecured notes rank equally senior unsecured debt obligations company convertible exchangeable issuances contain financial covenants restrict companys ability pay dividends repurchase company stock fiscal 2018 significant longterm debt issuances follows described note 8 prior year issuances foreigncurrencydenominated longterm debt designated hedge companys net investment japan repayments extinguishments following table provides details debt repayments fiscal 2019 1 includes repayments smaller longterm debt matured several nonus operations fiscal 2018 following longterm debt matured repaid 1 includes repayments smaller longterm debt matured several nonus operations 2 represents portion principal amount repaid fiscal 2018 fiscal 2018 connection extinguishing debt company paid premiums approximately 31 billion resulted loss extinguishment debt approximately 31 billion note 7 fair value measurements assets liabilities recorded fair value measured using fair value hierarchy prioritizes inputs used measuring fair value levels fair value hierarchy • level 1 observable inputs quoted prices active markets • level 2 inputs quoted prices active markets either directly indirectly observable • level 3 unobservable inputs little market data exists therefore requiring company develop assumptions company measures fair value equity investments primarily investment jd recurring basis records longterm assets accompanying consolidated balance sheets measurement details companys two portions investment jd follows • purchased portion investment jd measured using level 1 inputs prior fiscal 2019 classified availableforsale changes fair value recognized comprehensive income • portion investment jd received exchange selling certain assets related yihaodian companys former ecommerce operation china measured using level 2 inputs fair value determined primarily using quoted prices active markets similar assets prior fiscal 2019 investment carried cost information cost basis carrying value fair value companys investment jd follows 1 fair value already recognized balance sheet upon adoption new financial instrument standard february 1 2018 excess fair value cost reclassified accumulated comprehensive loss retained earnings 2 upon adoption new financial instrument standard february 1 2018 excess fair value cost recognized increasing carrying value asset retained earnings 3 decreases fair value february 1 2018 january 31 2019 35 billion recognized net income included gains losses companys consolidated statements income company also derivatives derivative fair values estimated amounts company would receive pay upon termination related derivative agreements reporting dates fair values measured using income approach level 2 inputs include relevant interest rate foreign currency forward curves january 31 2019 january 31 2018 notional amounts fair values derivatives follows nonrecurring fair value measurements addition assets liabilities recorded fair value recurring basis companys assets liabilities also subject nonrecurring fair value measurements generally assets recorded fair value nonrecurring basis result impairment charges discussed note 13 company sold majority stake walmart brazil fiscal 2019 assets disposal group totaled 33 billion comprised 10 billion current assets 16 billion property equipment property capital lease financing obligations net 07 billion longterm assets measured held sale assets fully impaired carrying value disposal group exceeded fair value less costs sell contributed pretax net loss 48 billion walmart international segment recorded gains losses companys consolidated statement income impairment charges assets measured fair value nonrecurring basis fiscal 2019 immaterial fiscal year ended january 31 2018 company recorded impairment charges related assets measured fair value nonrecurring basis approximately 14 billion primarily related following • sams club segment discussed note 14 06 billion restructuring charges closures underperforming clubs impaired assets consisted primarily buildings related store fixtures leased assets retail operations • walmart international segment discussed note 14 02 billion restructuring charges winddown brazil firstparty ecommerce business impaired assets consisted primarily fixtures equipment • immaterial discontinued real estate projects walmart us sams club segments decisions exit certain international properties walmart international segment impairment charges classified operating selling general administrative expenses companys consolidated statements income fair value determined based comparable market values similar properties rental income approach using level 2 inputs impairment charges related restructuring decisions exit properties fiscal 2018 material fair value disclosures company records cash equivalents restricted cash shortterm borrowings cost carrying values instruments approximate fair value due shortterm maturities companys longterm debt also recorded cost fair value estimated using level 2 inputs based companys current incremental borrowing rate similar types borrowing arrangements carrying value fair value companys longterm debt january 31 2019 2018 follows note 8 derivatives connection various derivative agreements including master netting arrangements company held cash collateral counterparties 220 million 279 million january 31 2019 january 31 2018 respectively furthermore part master netting arrangements counterparties company also required post collateral counterparty companys net derivative liability position exceeds 150 million counterparties company cash collateral posted counterparties january 31 2019 january 31 2018 respectively january 31 2019 january 31 2018 company ¥180 billion outstanding longterm debt designated hedge net investment japan well outstanding longterm debt £17 billion january 31 2019 january 31 2018 designated hedge net investment united kingdom nonderivative net investment hedges mature dates ranging july 2020 january 2039 companys derivatives well nonderivative debt instruments designated qualifying net investment hedges classified follows january 31 2019 2018 companys consolidated balance sheets amounts related companys derivatives expected reclassified accumulated comprehensive loss net income next 12 months significant note 9 taxes components income taxes follows summary provision income taxes follows december 2017 tax act enacted significantly changed us income tax law beginning january 2018 tax act reduced us statutory tax rate created new taxes focused foreignsourced earnings relatedparty payments including creation base erosion antiabuse tax new tax global intangible lowtaxed income gilti addition company subject onetime transition tax fiscal 2018 accumulated foreign subsidiary earnings previously subject us income tax sec staff issued staff accounting bulletin 118 income tax accounting implications tax cuts jobs act sab 118 allowed companies record provisional amounts measurement period extend beyond one year enactment date due timing enactment complexity involved applying provisions tax act company made reasonable estimates effects recorded provisional amounts financial statements january 31 2018 accordance sab 118 company elected apply measurement period provisions guidance certain income tax effects tax act became effective provisional measurement period ended fourth quarter fiscal 2019 management believes companys accounting tax reform complete based prevailing regulations currently available information additional guidance issued irs could impact aforementioned amounts future periods net tax benefit recognized fiscal 2018 related tax act 207 million fiscal 2019 company recorded 442 million additional tax expense related tax act included component provision income taxes onetime transition tax act required company pay us income taxes accumulated foreign subsidiary earnings previously subject us income tax rate 155 extent foreign cash certain net current assets defined tax act 80 remaining earnings fiscal 2018 company recorded provisional amount 19 billion additional income tax expense onetime transitional tax liability company finalized calculations transition tax liability increased provisional amount 413 million increase included component provision income taxes fiscal 2019 deferred tax effects tax act reduced us statutory tax rate 350 210 beginning january 2018 accordingly company remeasured deferred taxes january 31 2018 reflect reduced rate apply future periods deferred taxes settled realized fiscal 2018 company recognized deferred tax benefit 21 billion reflect reduced us tax rate effects tax act fiscal 2018 company made provisional adjustment respect gilti provision tax act upon finalizing provisional accounting remeasurement us deferred tax assets liabilities fiscal 2019 company recorded additional tax benefit 75 million included component provision income taxes effective income tax rate reconciliation past companys effective income tax rate typically lower us statutory tax rate primarily benefits lowertaxed global operations including use global funding structures certain us tax credits discussed cash equivalents section note 1 however beginning january 2018 us statutory rate 210 generally falls statutory rates international jurisdictions reconciliation significant differences us statutory tax rate effective income tax rate pretax income continuing operations follows deferred taxes significant components companys deferred tax account balances follows deferred taxes noted classified follows companys consolidated balance sheets unremitted earnings prior tax act company asserted unremitted earnings foreign subsidiaries considered indefinitely reinvested result tax act company reported paid us tax majority previously unremitted foreign earnings fiscal 2019 company repatriated us 53 billion cash relating fiscal 2019 prior earnings tax cost approximately 40 million january 31 2019 company recorded approximately 3 billion deferred tax liabilities associated remaining unremitted foreign earnings considered indefinitely reinvested us foreign income withholding taxes would due upon repatriation net operating losses tax credit carryforwards valuation allowances january 31 2019 company net operating loss capital loss carryforwards totaling 122 billion carryforwards 80 billion expire utilized various years 2039 remaining carryforwards expiration january 31 2019 companys transition tax calculation fully utilized foreign tax credit carryforwards recoverability future tax deductions credits evaluated assessing adequacy future expected taxable income sources including taxable income prior carryback years reversal taxable temporary differences forecasted operating earnings available tax planning strategies extent company consider likely deferred tax asset recovered valuation allowance established extent valuation allowance established subsequently determined likely deferred tax assets recovered valuation allowance released company valuation allowances 24 billion 18 billion january 31 2019 2018 respectively deferred tax assets associated primarily net operating loss carryforwards management determined likely deferred tax assets realized net activity valuation allowance fiscal 2019 related acquisition flipkart disposal walmart brazil changes judgment regarding future realization deferred tax assets releases arising use deferred tax assets decreases due operating loss expirations fluctuations currency exchange rates management believes likely remaining deferred tax assets fully realized uncertain tax positions benefits uncertain tax positions recorded companys consolidated financial statements determining morelikelythannot probability uncertain tax positions withstand challenge taxing authorities january 31 2019 2018 amount unrecognized tax benefits related continuing operations 13 billion 10 billion respectively amount unrecognized tax benefits would affect companys effective income tax rate 11 billion 690 million january 31 2019 2018 respectively reconciliation unrecognized tax benefits continuing operations follows interest expense penalties related positions immaterial fiscal 2019 2018 2017 next twelve months reasonably possible tax audit resolutions could reduce unrecognized tax benefits immaterial amount either tax positions sustained audit company agrees disallowance company focused resolving tax audits expeditiously possible result efforts unrecognized tax benefits could potentially reduced beyond provided range next twelve months company expect change material impact consolidated financial statements company remains subject income tax examinations us federal income taxes generally fiscal 2014 2019 company also remains subject income tax examinations international income taxes fiscal 2012 2019 us state local income taxes generally fiscal years ended 2013 2019 taxes company subject tax examinations value added salesbased payroll nonincome taxes number examinations ongoing various jurisdictions certain cases company received assessments respective taxing authorities connection examinations unless otherwise indicated possible losses range possible losses associated matters individually immaterial group related matters decided adversely company could result liability material companys consolidated financial statements note 10 contingencies legal proceedings company involved number legal proceedings company made accruals respect matters appropriate reflected companys consolidated financial statements matters liability probable amount cannot reasonably estimated therefore accrual made however liability reasonably possible may material matters disclosed company may enter discussions regarding settlement matters may enter settlement agreements believes settlement best interest company shareholders unless stated otherwise matters discussed decided adversely settled company individually aggregate may result liability material companys financial condition results operations asda equal value claims asda stores ltd asda whollyowned subsidiary company defendant nearly 30000 equal value claims proceeding employment tribunal manchester employment tribunal united kingdom uk behalf current former asda store employees claims may asserted future claimants allege work performed female employees asdas retail stores equal value terms among things demands jobs compared male employees working asdas warehouse distribution facilities disparity pay different job positions objectively justified result claimants requesting differential back pay based higher wage rates warehouse distribution facilities higher wage rates prospective basis march 23 2015 asda asked employment tribunal stay proceedings strike substantially claims claimants adhered tribunals procedural rule including multiple claimants claim form july 23 2015 employment tribunal denied asdas requests following additional proceedings june 20 2017 employment appeal tribunal ruled favor asda strike issue remitted matter employment tribunal determine whether improperly filed claims struck july 12 2017 claimants sought permission court appeals appeal ruling granted october 3 2017 hearing court appeals strike issue held october 23 2018 january 17 2019 court appeals declined strike claims relying employment tribunal’s finding claimants deliberately disregarded tribunal’s procedural rule initial phase equal value claims october 14 2016 following preliminary hearing employment tribunal ruled claimants could compare positions asdas retail stores employees asdas warehouse distribution facilities august 31 2017 employment appeal tribunal affirmed employment tribunals ruling also granted permission asda appeal substantially findings asda sought permission appeal remainder employment appeal tribunals findings court appeals hearing court appeals comparability findings held october 10 2018 court appeals upheld employment tribunal’s findings claimants proceeding next phase claims phase determine whether work performed claimants equal value work performed employees asdas warehouse distribution facilities present company cannot predict number claims may filed cannot reasonably estimate loss range loss may arise proceedings company believes substantial factual legal defenses claims intends defend claims vigorously national prescription opiate litigation related matters december 2017 united states judicial panel multidistrict litigation consolidated numerous lawsuits filed wide array defendants various plaintiffs including counties cities healthcare providers native american tribes individuals thirdparty payors asserting claims generally concerning impacts widespread opioid abuse consolidated multidistrict litigation entitled national prescription opiate litigation mdl 2804 pending us district court northern district ohio company named defendant cases included multidistrict litigation similar cases name company also filed state courts state local tribal governments health care providers plaintiffs seeking compensatory punitive damages well injunctive relief including abatement company cannot predict number claims may filed believes substantial factual legal defenses claims intends defend claims vigorously company also responding subpoenas information requests investigations governmental entities related nationwide controlled substance dispensing distribution practices involving opioids company cannot reasonably estimate loss range loss may arise matters accordingly company provide assurance scope outcome matters assurance whether business financial position results operations cash flows materially adversely affected fcpa investigation related matters audit committee audit committee board directors company conducting internal investigation among things alleged violations us foreign corrupt practices act fcpa alleged crimes misconduct connection foreign subsidiaries including walmart de méxico sab de cv walmex whether prior allegations violations andor misconduct appropriately handled company audit committee company engaged outside counsel number law firms advisors assisting ongoing investigation matters company also conducting voluntary global review policies practices internal controls anticorruption compliance company engaged strengthening global anticorruption compliance program appropriate remedial anticorruption measures november 2011 company voluntarily disclosed investigative activity us department justice doj securities exchange commission sec since implementation global review enhanced anticorruption compliance program audit committee company identified made aware additional allegations regarding potential violations fcpa allegations reported identified audit committee company together third party advisors conducted inquiries warranted based inquiries opened investigations inquiries investigations regarding allegations potential fcpa violations commenced number foreign markets company operates operated including limited brazil china india previously disclosed company investigation doj sec regarding possible violations fcpa company cooperating agencies discussions ongoing regarding resolution matters discussions progressed point fiscal 2018 company reasonably estimated probable loss recorded aggregate accrual 283 million respect matters accrual discussions continuing assurance timing terms final resolution matters number federal local government agencies mexico also investigated matters walmex cooperated mexican governmental agencies conducted investigations furthermore lawsuits relating matters investigation filed several companys shareholders walmart certain current former directors former officers certain walmexs former officers matters resolved immaterial accruals made proposed settlements company could exposed variety negative consequences result matters noted could one enforcement actions respect matters subject ongoing government investigations actions brought may result judgments settlements fines penalties injunctions cease desist orders debarment relief criminal convictions andor penalties shareholder lawsuits may result judgments company current former directors officers named proceedings company expects ongoing media governmental interest including additional news articles media publications matters could impact perception among certain audiences companys role corporate citizen addition company incurred expects continue incur costs responding requests information subpoenas seeking documents testimony information connection government investigations defending shareholder lawsuits conducting review investigations costs expensed incurred fiscal years ended january 31 2019 2018 2017 company incurred following thirdparty expenses connection fcpa investigation related matters company presently believe matters including accrual payment accrual pointintime future material adverse effect business financial position results operations cash flows although given inherent uncertainties situations company provide assurance matters material business financial position results operations cash flows future note 11 commitments rentals including amounts applicable taxes insurance maintenance operating expenses contingent rentals operating leases shortterm rental arrangements 30 billion 29 billion 26 billion fiscal 2019 2018 2017 respectively aggregate minimum annual rentals january 31 2019 noncancelable leases follows 1 represents minimum contractual obligation noncancelable leases initial remaining terms greater 12 months january 31 2019 certain companys leases provide payment contingent rentals based percentage sales contingent rentals material fiscal 2019 2018 2017 substantially companys store leases renewal options may trigger escalation rentals note 12 retirementrelated benefits company offers 401k plan associates us eligible associates begin contributing plan immediately upon hire company also offers 401k type plan associates puerto rico associates begin contribute generally one year employment plans one year employment company matches 100 participant contributions 6 annual eligible earnings matching contributions immediately vest 100 associate participants contribute 50 pretax earnings statutory limits associates international countries us citizens covered various defined contribution postemployment benefit arrangements plans administered based upon legislative tax requirements countries established following table summarizes contribution expense related companys defined contribution plans fiscal 2019 2018 2017 additionally companys subsidiaries united kingdom japan sponsored defined benefit pension plans plan united kingdom overfunded 326 million 97 million january 31 2019 2018 respectively plan japan underfunded 175 million 184 million january 31 2019 2018 respectively overfunded amounts recorded assets companys consolidated balance sheets assets deferred charges underfunded amounts recorded liabilities companys consolidated balance sheets deferred income taxes certain international operations also defined benefit arrangements significant note 13 acquisitions disposals related items following significant transactions impact expected impact operations companys walmart international segment immaterial transactions also occurred announced walmart brazil august 2018 company sold 80 percent stake walmart brazil advent international advent terms advent agreed contribute additional capital business threeyear period walmart agreed indemnify advent certain matters additionally company may receive approximately 250 million contingent consideration disposal group consisted following • assets 33 billion fully impaired discussed note 7 upon meeting held sale criteria • liabilities 13 billion consisting 07 billion accounts payable accrued liabilities 01 billion capital lease financing obligations 05 billion deferred taxes longterm liabilities • cumulative foreign currency translation loss 20 billion reclassified accumulated comprehensive loss see note 4 result company recorded pretax net loss 48 billion fiscal 2019 gains losses companys consolidated statement income calculating loss fair value disposal group reduced 08 billion related indemnity liability recognized upon closing recorded deferred income taxes companys consolidated balance sheets indemnity company indemnify advent certain preclosing tax legal contingencies matters r23 billion adjusted interest based brazilian interbank deposit rate company deconsolidated financial statements walmart brazil third quarter fiscal 2019 began accounting remaining 20 percent ownership interest determined initial fair value using equity method accounting flipkart august 2018 company acquired 81 percent outstanding shares 77 percent diluted shares flipkart indianbased ecommerce marketplace cash consideration approximately 16 billion acquisition increases companys investment india large growing economy purchase price allocation still preliminary primarily due certain tax items follows • assets 241 billion comprise primarily 22 billion cash equivalents 28 billion current assets 50 billion intangible assets 136 billion goodwill intangible assets 47 billion represents fair value trade names indefinite life estimated using income approach based level 3 unobservable inputs remaining 03 billion intangible assets primarily relate acquired technology life 3 years goodwill arising acquisition consists largely anticipated synergies economies scale primarily related procurement logistics expected deductible tax purposes • liabilities 37 billion comprise primarily 18 billion current liabilities 18 billion deferred income taxes • noncontrolling interest 43 billion fair value estimated using income approach based level 3 unobservable inputs company began consolidating financial statements flipkart third quarter fiscal 2019 using onemonth lag finance acquisition company used combination cash provided longterm debt discussed note 6 cash hand flipkart results operations since acquisition pro forma financial information immaterial asda april 2018 company entered definitive agreement announced proposed combination j sainsbury plc asda group limited asda group companys wholly owned uk retail subsidiary terms combination company would receive approximately 42 percent share capital combined company addition company would receive approximately £3 billion cash subject customary closing adjustments retain obligations asda group defined benefit pension plan due complex regulatory review process outcome continues uncertain held sale classification criteria disposal group met january 31 2019 transaction closes company would deconsolidate financial statements asda group account ongoing investment combined company using equity method accounting suburbia april 2017 company sold suburbia apparel retail division mexico 10 billion part sales agreement company also leasing certain real estate purchaser sale resulted pretax gain 07 billion 04 billion recognized second quarter fiscal 2018 membership income remainder deferred recognized lease terms approximately 20 years yihaodian jd june 2016 company sold certain assets relating yihaodian ecommerce operations china including yihaodian brand website application jd exchange class ordinary shares jd valued 15 billion representing approximately five percent jds outstanding ordinary shares fully diluted basis sale resulted recognition 535 million noncash gain included membership income accompanying consolidated statements income subsequently fiscal 2017 company purchased 19 billion additional jd shares representing incremental ownership percentage approximately five percent total ownership approximately ten percent jds outstanding ordinary shares following significant transaction primarily impacts companys walmart us segment immaterial transactions also occurred announced jetcom inc september 2016 company completed acquisition jetcom usbased ecommerce company integration jetcom walmart us segment building upon current ecommerce foundation allowing synergies talent logistical operations access broader customer base total purchase price acquisition 24 billion net cash acquired allocation purchase price includes 17 billion goodwill 06 billion intangible assets part transaction company paying additional compensation approximately 08 billion five year period note 14 restructuring charges fiscal 2018 company announced several organizational changes position business efficient growth going forward result company recorded 12 billion pretax restructuring charges fiscal 2018 follows asset impairment charges primarily relate real estate sams club closures winddown brazil firstparty ecommerce business written estimated fair value refer note 7 information fair value measurement pretax restructuring charges 12 billion classified operating selling general administrative expenses companys consolidated statement income fiscal 2018 january 31 2018 substantially severance costs recorded accrued liabilities companys consolidated balance sheets subsequently paid fiscal 2019 note 15 segments disaggregated revenue segments company engaged operation retail wholesale units well ecommerce websites located throughout us africa argentina canada central america chile china india japan mexico united kingdom well brazil prior sale majority stake walmart brazil discussed note 13 companys operations conducted three reportable segments walmart us walmart international sams club company defines segments operations whose results chief operating decision maker codm regularly reviews analyze performance allocate resources company sells similar individual products services segments impractical segregate identify revenues individual products services walmart us segment includes companys mass merchant concept us well ecommerce omnichannel initiatives walmart international segment consists companys operations outside us well ecommerce omnichannel initiatives sams club segment includes warehouse membership clubs us well samsclubcom omnichannel initiatives corporate support consists corporate overhead items allocated companys segments company measures results segments using among measures segments net sales operating income includes certain corporate overhead allocations time company revises measurement segments operating income including corporate overhead allocations determined information regularly reviewed codm fiscal 2019 company revised certain corporate overhead allocations including depreciation expense operating segments accordingly revised prior period amounts comparability information companys segments well corporate support including reconciliation income taxes provided following table total revenues consisting net sales membership income longlived assets consisting primarily property equipment net aggregated companys us nonus operations fiscal 2019 2018 2017 follows individual country outside us total revenues longlived assets material consolidated totals additionally company generate material total revenues single customer disaggregated revenues following tables segment net sales disaggregated either merchandise category market addition net sales related ecommerce provided segment include omnichannel sales customer initiates order online order fulfilled store club walmart uss total net sales approximately 157 billion related ecommerce fiscal 2019 internationals total net sales approximately 67 billion related ecommerce fiscal 2019 sams clubs total net sales approximately 27 billion related ecommerce fiscal 2019 note 16 subsequent event dividends declared board directors approved effective february 19 2019 fiscal 2020 annual dividend 212 per share increase fiscal 2019 dividend 208 per share fiscal 2020 annual dividend paid four quarterly installments 053 per share according following record payable dates note 17 quarterly financial data unaudited 1 sum quarterly amounts may agree annual amount due rounding impact decreasing amount shares outstanding year item 9item 8 financial statements supplementary data consolidated financial statements walmart inc fiscal year ended january 31 2020 report independent registered public accounting firm shareholders board directors walmart inc opinion financial statements audited accompanying consolidated balance sheets walmart inc company january 31 2020 2019 related consolidated statements income comprehensive income shareholders equity cash flows three years period ended january 31 2020 related notes collectively referred consolidated financial statements opinion consolidated financial statements present fairly material respects financial position company january 31 2020 2019 results operations cash flows three years period ended january 31 2020 conformity us generally accepted accounting principles also audited accordance standards public company accounting oversight board united states pcaob companys internal control financial reporting january 31 2020 based criteria established internal controlintegrated framework issued committee sponsoring organizations treadway commission 2013 framework report dated march 20 2020 expressed unqualified opinion thereon adoption asu 201602 discussed note 1 consolidated financial statements company changed method accounting leases effective february 1 2019 due adoption accounting standards update “asu” 201602 leases topic 842 basis opinion financial statements responsibility companys management responsibility express opinion company’s financial statements based audits public accounting firm registered pcaob required independent respect company accordance us federal securities laws applicable rules regulations securities exchange commission pcaob conducted audits accordance standards pcaob standards require plan perform audit obtain reasonable assurance whether financial statements free material misstatement whether due error fraud audits included performing procedures assess risks material misstatement financial statements whether due error fraud performing procedures respond risks procedures included examining test basis evidence regarding amounts disclosures financial statements audits also included evaluating accounting principles used significant estimates made management well evaluating overall presentation financial statements believe audits provide reasonable basis opinion critical audit matters critical audit matters communicated matters arising current period audit financial statements communicated required communicated audit committee 1 relate accounts disclosures material financial statements 2 involved especially challenging subjective complex judgments communication critical audit matters alter way opinion consolidated financial statements taken whole communicating critical audit matters providing separate opinions critical audit matters accounts disclosures relate contingencies description matter described note 10 consolidated financial statements january 31 2020 company involved number legal proceedings made accruals respect certain matters liability probable amount cannot reasonably estimated therefore accrual made liability reasonably possible may material matters disclosed management assessed probability occurrence estimation potential loss based ability predict number claims may filed whether loss range loss reasonably estimated example assessing probability occurrence particular legal proceeding management exercises judgment determine predict number claims may filed whether reasonably estimate loss range loss may arise proceeding auditing management’s accounting disclosure loss contingencies complex highly judgmental involved assessment significant judgments made management assessing probability occurrence determining whether estimate loss range loss could made addressed matter audit obtained understanding evaluated design tested operating effectiveness controls identification evaluation contingencies example tested controls company’s assessment likelihood loss company’s determinations regarding measurement loss test company’s assessment probability occurrence determination estimate loss range loss among procedures read minutes meetings board directors committees board directors reviewed opinions provided company certain outside legal counsel read letters received directly us internal external counsel evaluated current status contingencies based discussions internal legal counsel also evaluated appropriateness related disclosures valuation indefinitelived intangible assets description matter january 31 2020 company 52 billion indefinitelived intangible assets disclosed notes 1 8 12 consolidated financial statements assets evaluated impairment least annually using valuation techniques estimate fair value fair value estimates sensitive certain significant assumptions including revenue growth rates discount rates royalty rates auditing management’s annual indefinitelived intangible assets impairment tests complex highly judgmental due significant measurement uncertainty determining fair values indefinitelived intangibles example fair value estimates sensitive significant assumptions identified affected future market economic conditions addressed matter audit obtained understanding evaluated design tested operating effectiveness controls company’s indefinitelived intangible asset impairment review process procedures included testing controls management’s review significant assumptions described used estimate fair values indefinitelived intangible assets test estimated fair values indefinitelived intangible assets performed audit procedures included among others assessing methodologies used determine fair value testing significant assumptions discussed testing completeness accuracy underlying data used company example evaluated management’s forecasted revenue growth rates used fair value estimates comparing assumptions historical results company current industry market economic forecasts involved valuation specialist assist evaluating valuation methodologies significant assumptions discount rates royalty rates additionally performed sensitivity analyses significant assumptions evaluate effect fair value estimates indefinitelived intangible assets ernst young llp served companys auditor since 1969 rogers arkansas march 20 2020 report independent registered public accounting firm shareholders board directors walmart inc opinion internal control financial reporting audited walmart incs internal control financial reporting january 31 2020 based criteria established internal controlintegrated framework issued committee sponsoring organizations treadway commission 2013 framework coso criteria opinion walmart inc company maintained material respects effective internal control financial reporting january 31 2020 based coso criteria also audited accordance standards public company accounting oversight board united states pcaob accompanying consolidated balance sheets walmart inc january 31 2020 2019 related consolidated statements income comprehensive income shareholders equity cash flows three years period ended january 31 2020 related notes report dated march 20 2020 expressed unqualified opinion thereon basis opinion company’s management responsible maintaining effective internal control financial reporting assessment effectiveness internal control financial reporting included accompanying report internal control financial reporting responsibility express opinion company’s internal control financial reporting based audit public accounting firm registered pcaob required independent respect company accordance us federal securities laws applicable rules regulations securities exchange commission pcaob conducted audit accordance standards pcaob standards require plan perform audit obtain reasonable assurance whether effective internal control financial reporting maintained material respects audit included obtaining understanding internal control financial reporting assessing risk material weakness exists testing evaluating design operating effectiveness internal control based assessed risk performing procedures considered necessary circumstances believe audit provides reasonable basis opinion definition limitations internal control financial reporting company’s internal control financial reporting process designed provide reasonable assurance regarding reliability financial reporting preparation financial statements external purposes accordance generally accepted accounting principles company’s internal control financial reporting includes policies procedures 1 pertain maintenance records reasonable detail accurately fairly reflect transactions dispositions assets company 2 provide reasonable assurance transactions recorded necessary permit preparation financial statements accordance generally accepted accounting principles receipts expenditures company made accordance authorizations management directors company 3 provide reasonable assurance regarding prevention timely detection unauthorized acquisition use disposition company’s assets could material effect financial statements inherent limitations internal control financial reporting may prevent detect misstatements also projections evaluation effectiveness future periods subject risk controls may become inadequate changes conditions degree compliance policies procedures may deteriorate ernst young llp rogers arkansas march 20 2020 walmart inc consolidated statements income see accompanying notes walmart inc consolidated statements comprehensive income see accompanying notes walmart inc consolidated balance sheets see accompanying notes walmart inc consolidated statements shareholders equity see accompanying notes walmart inc consolidated statements cash flows see accompanying notes walmart inc notes consolidated financial statements note 1 summary significant accounting policies general walmart inc walmart company helps people around world save money live better anytime anywhere providing opportunity shop retail stores ecommerce innovation company striving continuously improve customercentric experience seamlessly integrates ecommerce retail stores omnichannel offering saves time customers week company serves 265 million customers visit approximately 11500 stores numerous ecommerce websites 56 banners 27 countries companys operations comprise three reportable segments walmart us walmart international sams club principles consolidation consolidated financial statements include accounts walmart subsidiaries fiscal years ended january 31 2020 fiscal 2020 january 31 2019 fiscal 2019 january 31 2018 fiscal 2018 intercompany accounts transactions eliminated consolidation company consolidates variable interest entities determined company primary beneficiary entities operations investments company exercises significant influence control accounted equity method variable interest entities equity method investments immaterial companys consolidated financial statements companys consolidated financial statements based fiscal year ending january 31 united states us canadian operations company consolidates operations generally using onemonth lag based calendar year significant intervening events month january 2020 related operations consolidated using lag materially affected consolidated financial statements use estimates consolidated financial statements prepared conformity us generally accepted accounting principles require management make estimates assumptions affect reported amounts assets liabilities managements estimates assumptions also affect disclosure contingent assets liabilities date financial statements reported amounts revenues expenses reporting period actual results may differ estimates cash equivalents company considers investments maturity purchased three months less cash equivalents credit card debit card electronic transfer transactions process less seven days classified cash equivalents amounts due banks transactions classified cash equivalents totaled 17 billion 14 billion january 31 2020 2019 respectively companys cash balances held various locations around world companys 95 billion 77 billion cash equivalents january 31 2020 january 31 2019 held outside us cash equivalents held outside us generally utilized support liquidity needs companys nonus operations company uses intercompany financing arrangements effort ensure cash made available country needed minimum cost possible january 31 2020 2019 cash equivalents approximately 23 billion 28 billion respectively may freely transferable us due local laws restrictions 23 billion january 31 2020 approximately 06 billion accessed dividends intercompany financing arrangements subject approval flipkart private limited flipkart minority shareholders however cash expected utilized fund operations flipkart receivables stated carrying values net reserve doubtful accounts primarily due following customers also includes insurance companies resulting pharmacy sales banks customer credit debit cards electronic transfer transactions take excess seven days process suppliers marketing incentive programs governments income taxes real estate transactions january 31 2020 january 31 2019 receivables transactions customers net 29 billion 25 billion respectively inventories company values inventories lower cost market determined primarily retail inventory method accounting using lastin firstout lifo method walmart us segments inventories inventory walmart international segment valued primarily retail inventory method accounting using firstin firstout fifo method retail inventory method accounting results inventory valued lower cost market since permanent markdowns immediately recorded reduction retail value inventory sams club segment valued using weightedaverage cost lifo method january 31 2020 january 31 2019 companys inventories valued lifo approximated inventories valued fifo assets held sale assets held sale represent components businesses meet accounting requirements classified held sale presented single asset liability amounts companys financial statements valuation allowance necessary recognize net carrying amount lower cost fair value less costs sell company reviews businesses assets held sale reporting period determine whether existing carrying amounts fully recoverable comparison estimated fair values january 31 2020 january 31 2019 immaterial amounts assets liabilities held sale classified prepaid expenses accrued liabilities respectively consolidated balance sheets property equipment property equipment initially recorded cost gains losses disposition recognized earned incurred costs major improvements capitalized costs normal repairs maintenance expensed incurred following table summarizes companys property equipment balances includes estimated useful lives generally used depreciate assets straightline basis leasehold improvements depreciated amortized shorter estimated useful life asset remaining expected lease term total depreciation amortization expense property equipment property finance leases financing obligations property capital leases intangible assets fiscal 2020 2019 2018 110 billion 107 billion 105 billion respectively leases february 2016 fasb issued asu 201602 leases topic 842 requires lease assets liabilities recorded balance sheet company adopted asu related amendments february 1 2019 modified retrospective approach elected certain practical expedients permitted transition guidance including retain historical lease classification well relief reviewing expired existing contracts determine contain leases subject index rate adjustments current index rate adjustments included measurement operating lease obligations adoption asu related amendments resulted 148 billion increase total assets 151 billion increase total liabilities first quarter fiscal 2020 first quarter fiscal 2020 company recognized 168 billion 175 billion operating lease rightofuse assets operating lease obligations respectively removed 22 billion 17 billion respectively assets liabilities related financial obligations connected construction leased stores several asset liability line items companys consolidated balance sheet also impacted immaterial amounts additionally adoption resulted cumulativeeffect adjustment retained earnings approximately 03 billion net tax primarily consisted recognition impairment company’s consolidated statement income consolidated statement cash flows immaterially impacted accounting policies result adoption asu described refer note 7 additional lease disclosures new modified lease company inception contract determines whether contract contains lease company records rightofuse rou assets lease obligations finance operating leases initially recognized based discounted future lease payments term lease rate implicit companys leases easily determinable company’s applicable incremental borrowing rate used calculating present value sum lease payments lease term defined noncancelable period lease plus options extend terminate lease reasonably certain company exercise option company elected recognize rou asset lease obligations shortterm leases defined leases initial term 12 months less majority classes underlying assets company elected separate lease nonlease components leases lease nonlease components combined variable lease expense includes expenses common area maintenance utilities repairs maintenance impairment longlived assets management reviews longlived assets indicators impairment whenever events changes circumstances indicate carrying amount may recoverable evaluation performed lowest level identifiable cash flows individual store club level undiscounted cash flows expected generated related assets estimated assets useful lives based updated projections evaluation indicates carrying amount assets may recoverable potential impairment measured based upon fair value related asset group determined appropriate market appraisal valuation technique goodwill acquired intangible assets goodwill represents excess purchase price fair value net assets acquired business combinations allocated appropriate reporting unit acquired intangible assets stated fair value acquired determined valuation technique commensurate intended use related asset goodwill indefinitelived intangible assets amortized rather evaluated impairment annually whenever events changes circumstances indicate value asset may impaired definitelived intangible assets considered longlived assets amortized straightline basis periods expected economic benefits provided goodwill assigned reporting unit consolidates acquisition components within reportable segment aggregated deemed single reporting unit components similar economic characteristics january 31 2020 companys reporting units consisted walmart us walmart international sams club goodwill evaluated impairment using either qualitative quantitative approach companys reporting units generally qualitative assessment first performed determine whether quantitative goodwill impairment test necessary management determines performing assessment based qualitative factors fair value reporting unit likely less carrying amount fair value reporting unit substantially excess carrying amount cannot assured quantitative goodwill impairment test would required quantitative test goodwill impairment performed determining fair value related reporting units fair value measured based discounted cash flow method relative marketbased approaches evaluation management determined fair value reporting unit significantly greater carrying amount accordingly company recorded impairment charges related goodwill following table reflects goodwill activity reportable segment fiscal 2020 2019 1 goodwill recorded fiscal 2019 walmart international relates flipkart intangible assets included longterm assets companys consolidated balance sheets january 31 2020 2019 company 52 billion 58 billion respectively indefinitelived intangible assets primarily made acquired trade names refer note 12 additional information related acquired intangible assets flipkart acquisition fiscal 2020 company incurred approximately 07 billion impairment charges related intangible assets significant impairment charges related intangible assets fiscal 2019 2018 refer note 8 additional information fair value measurement january 2016 financial accounting standards board fasb issued accounting standards update asu 201601 financial instrumentsoverall topic 825 updated certain aspects recognition measurement presentation disclosure financial instruments asu 201601 company adopted asu february 1 2018 primarily impacted companys accounting investment jdcom inc jd resulted positive adjustment retained earnings approximately 26 billion net tax fiscal 2019 based market value companys investment jd january 31 2018 adoption required prospective changes fair value companys investment jd recorded consolidated statement income company classifies gains losses company records discloses certain financial nonfinancial assets liabilities fair value fair value asset price asset could sold orderly transaction unrelated knowledgeable willing parties able engage transaction fair value liability amount would paid transfer liability new obligor transaction parties amount would paid settle liability creditor refer note 8 information self insurance reserves company selfinsures number risks including limited workers compensation general liability auto liability product liability certain employeerelated healthcare benefits standard actuarial procedures data analysis used estimate liabilities associated risks balance sheet date undiscounted basis recorded liabilities reflect ultimate cost claims incurred paid estimable administrative runout expenses related processing outstanding claim payments regular basis liabilities evaluated appropriateness claims reserve valuations limit exposure risks company maintains insurance coverage varying limits retentions including stoploss insurance coverage workers compensation general liability auto liability derivatives company uses derivatives hedging purposes manage exposure changes interest currency exchange rates well maintain appropriate mix fixed variablerate debt use derivatives hedging programs subjects company certain risks market credit risks company may exposed creditrelated losses event nonperformance counterparties derivatives credit risk monitored established approval procedures including setting concentration limits counterparty reviewing credit ratings requiring collateral counterparty company enters derivatives counterparties rated better nationally recognized credit rating agencies company subject master netting arrangements provides setoff close netting exposures counterparties company offset derivative assets liabilities consolidated balance sheets company’s collateral arrangements requires counterparty net liability position excess predetermined thresholds considering effects netting arrangements pledge cash collateral cash collateral received arrangements significant january 31 2020 2019 company required provide cash collateral counterparties january 31 2020 2019 order qualify hedge accounting inception hedging relationship company formally documents risk management objective strategy undertaking hedging transaction well designation hedge derivative recorded using hedge accounting depending nature hedge derivative gains losses recorded financial statement line item earnings recognized accumulated comprehensive loss hedged item recognized earnings derivatives meet criteria hedge accounting contracts company elected hedge accounting recorded fair value unrealized gains losses reported earnings derivatives unrealized gain recorded companys consolidated balance sheets either current noncurrent assets based maturity date derivatives unrealized loss recorded either current noncurrent liabilities based maturity date refer note 8 presentation companys derivative assets liabilities fair value hedges company party receive fixedrate pay variablerate interest rate swaps company uses hedge fair value fixedrate debt interest rate swaps designated fair value hedges related longterm debt meet shortcut method requirements us gaap accordingly changes fair values interest rate swaps considered exactly offset changes fair value underlying longterm debt derivatives mature dates ranging october 2020 april 2024 cash flow hedges company party receive fixedrate pay fixedrate cross currency interest rate swaps used hedge currency exposure associated forecasted payments principal interest certain nonus denominated debt company records changes fair value swaps accumulated comprehensive loss subsequently reclassified earnings period hedged forecasted transaction affects earnings derivatives mature dates ranging april 2022 march 2034 net investment hedges company party receive fixedrate pay fixedrate cross currency interest rate swaps used hedge currency exposure associated net investments certain foreign operations company records changes fair value attributable hedged risk accumulated comprehensive loss derivatives mature dates ranging july 2020 february 2030 company also designated certain foreign currency denominated longterm debt hedge currency exposure associated net investment operations company records foreign currency gain loss associated designated longterm debt accumulated comprehensive loss january 31 2020 2019 company 39 billion respectively outstanding longterm debt designated net investment hedges derivative nonderivative gains losses continue defer accumulated comprehensive loss sale substantial liquidation foreign operations income taxes income taxes accounted balance sheet method deferred tax assets liabilities recognized estimated future tax consequences attributable differences financial statement carrying amounts existing assets liabilities respective tax bases temporary differences deferred tax assets liabilities measured using enacted tax rates effect year temporary differences expected recovered settled effect deferred tax assets liabilities change tax rate recognized income period includes enactment date deferred tax assets evaluated future realization reduced valuation allowance extent portion likely realized many factors considered assessing whether likely deferred tax assets realized including recent cumulative earnings expectations future taxable income carryforward periods relevant quantitative qualitative factors recoverability deferred tax assets evaluated assessing adequacy future expected taxable income sources including reversal taxable temporary differences forecasted operating earnings available tax planning strategies sources income rely estimates tax cuts jobs act contains provision subjects us parent foreign subsidiary current us tax global intangible lowtaxed income “gilti” gilti income eligible deduction lowers effective tax rate 105 calendar years 2018 2025 13125 2025 company report tax impact gilti period cost incurred accordingly company providing deferred taxes basis differences expected reverse gilti determining provision income taxes annual effective income tax rate used based annual income permanent differences book tax income statutory income tax rates discrete events audit settlements changes tax laws recognized period occur company records liability unrecognized tax benefits resulting uncertain tax positions taken expected taken tax return company records interest penalties related unrecognized tax benefits interest expense operating selling general administrative expenses respectively companys consolidated statements income refer note 9 additional income tax disclosures revenue recognition net sales company recognizes sales revenue net sales taxes estimated sales returns time sells merchandise services customer ecommerce sales include shipping revenue recorded upon delivery customer estimated sales returns calculated based expected returns membership fee revenue company recognizes membership fee revenue us internationally term membership typically 12 months membership fee revenue 15 billion fiscal 2020 14 billion fiscal 2019 2018 respectively membership fee revenue included membership income companys consolidated statements income deferred membership fee revenue included accrued liabilities companys consolidated balance sheets gift cards customer purchases gift cards recognized sales card redeemed customer purchases merchandise using gift card gift cards us countries carry expiration date therefore customers members redeem gift cards merchandise services indefinitely gift cards countries company business expiration dates gift cards generally redeemed within 12 months certain number gift cards without expiration dates fully redeemed management estimates unredeemed balances recognizes revenue amounts membership income companys consolidated statements income expected redemption period financial services company recognizes revenue service transactions time service performed generally revenue services classified component net sales companys consolidated statements income cost sales cost sales includes actual product cost transportation companys distribution facilities stores clubs suppliers cost transportation companys distribution facilities stores clubs customers cost warehousing sams club segment import distribution centers cost sales reduced supplier payments reimbursement specific incremental identifiable costs payments suppliers company receives consideration suppliers various programs primarily volume incentives warehouse allowances reimbursements specific programs markdowns margin protection advertising supplierspecific fixtures payments suppliers accounted reduction cost sales except certain limited situations payment reimbursement specific incremental identifiable costs recognized companys consolidated statements income related inventory sold operating selling general administrative expenses operating selling general administrative expenses include operating costs company except cost sales described result majority cost warehousing occupancy walmart us walmart international segments distribution facilities included operating selling general administrative expenses company includes portion cost walmart us walmart international segments distribution facilities cost sales gross profit gross profit percentage net sales may comparable retailers may include costs related distribution facilities cost sales calculation gross profit advertising costs advertising costs expensed incurred consist primarily print television digital advertisements recorded operating selling general administrative expenses companys consolidated statements income certain limited situations reimbursements suppliers specific incremental identifiable advertising costs recognized reduction advertising costs operating selling general administrative expenses advertising costs 37 billion 35 billion 31 billion fiscal 2020 2019 2018 respectively currency translation assets liabilities international subsidiaries translated respective local currency us dollar using exchange rates balance sheet date related translation adjustments recorded component accumulated comprehensive loss companys consolidated statements income international subsidiaries translated respective local currencies us dollar using average exchange rates period covered income statements recent accounting pronouncements financial instruments june 2016 fasb issued asu 201613 financial instrumentscredit losses topic 326 modifies measurement expected credit losses certain financial instruments company adopted asu february 1 2020 material impact companys consolidated financial statements note 2 net income per common share basic net income per common share attributable walmart based weightedaverage common shares outstanding relevant period diluted net income per common share attributable walmart based weightedaverage common shares outstanding relevant period adjusted dilutive effect sharebased awards company significant sharebased awards outstanding antidilutive included calculation diluted net income per common share attributable walmart fiscal 2020 2019 2018 following table provides reconciliation numerators denominators used determine basic diluted net income per common share attributable walmart note 3 shareholders equity total authorized shares 010 par value common stock 110 billion 28 billion 29 billion issued outstanding january 31 2020 2019 respectively sharebased compensation company awarded sharebased compensation associates nonemployee directors company compensation expense recognized stock incentive plans including expense associated plans companys consolidated subsidiaries granted subsidiaries respective stock 854 million 773 million 626 million fiscal 2020 2019 2018 respectively sharebased compensation expense generally included operating selling general administrative expenses companys consolidated statements income total income tax benefit recognized sharebased compensation 202 million 181 million 150 million fiscal 2020 2019 2018 respectively following table summarizes companys sharebased compensation expense award type plans walmart inc stock incentive plan 2015 plan amended restated effective february 23 2016 amended february 1 2017 renamed february 1 2018 established grant stock options restricted nonvested stock performance share units equity compensation awards 260 million shares walmart common stock issued plan registered securities act 1933 amended company believes awards serve align interests associates shareholders plans award types summarized follows • restricted stock performance share units restricted stock awards shares vest based passage time include restrictions related employment performance share units vest based passage time achievement performance criteria may range 0 150 original award amount vesting periods awards generally one three years restricted stock performance share units may settled deferred stock accounted equity companys consolidated balance sheets fair value restricted stock awards determined date grant expensed ratably vesting period fair value performance share units determined date grant using companys stock price discounted expected dividend yield vesting period recognized vesting period weightedaverage discount dividend yield used determine fair value performance share units fiscal 2020 2019 2018 51 62 72 respectively • restricted stock units restricted stock units provide rights company stock specified service period beginning fiscal 2020 restricted stock units generally vest rate 25 year four year period date grant prior fiscal 2020 50 restricted stock units generally vested three years grant date remaining 50 vested five years grant date fair value restricted stock unit determined date grant using stock price discounted expected dividend yield vesting period recognized ratably vesting period expected dividend yield based anticipated dividends vesting period weightedaverage discount dividend yield used determine fair value restricted stock units granted fiscal 2020 2019 2018 49 72 90 respectively addition plan companys united kingdom subsidiary stock option plans certain colleagues generally vest three years stock option sharebased compensation expense included line table flipkart also maintains stock option plan primarily benefit employees nonemployee directors options acquire flipkart common shares may issued grants exercise price compensation expense recognized fiscal 2020 fiscal 2019 performance condition deemed probable occurring following table shows activity restricted stock performance share units restricted stock units fiscal 2020 1 represents adjustment previously granted performance share units performance achievement following table includes additional information related restricted stock performance share units restricted stock units share repurchase program time company repurchases shares common stock share repurchase programs authorized companys board directors repurchases made fiscal 2020 made current 200 billion share repurchase program approved october 2017 expiration date restrictions limiting period company make share repurchases january 31 2020 authorization 57 billion share repurchases remained share repurchase program repurchased shares constructively retired returned unissued status company regularly reviews share repurchase activity considers several factors determining execute share repurchases including among things current cash needs capacity leverage cost borrowings results operations market price companys common stock following table provides settlement date basis number shares repurchased average price paid per share total amount paid share repurchases fiscal 2020 2019 2018 note 4 accumulated comprehensive loss following table provides changes composition total accumulated comprehensive loss fiscal 2020 2019 2018 1 primarily relates adoption asu 201601 asu 201802 income statementreporting comprehensive income topic 220 reclassification certain tax effects accumulated comprehensive income 2 includes cumulative foreign currency translation loss 20 billion related income taxes upon sale majority stake walmart brazil see note 12 3 primarily includes remeasurement asdas pension benefit obligation subsequent cash contribution made asda described fully note 11 amounts reclassified accumulated comprehensive loss derivatives recorded interest net companys consolidated statements income amounts minimum pension liability well cumulative translation resulting disposition business recorded gains losses companys consolidated statements income amounts related companys derivatives expected reclassified accumulated comprehensive loss net income next 12 months significant note 5 accrued liabilities companys accrued liabilities consist following january 31 2020 2019 1 accrued wages benefits include accrued wages salaries vacation bonuses incentive plans 2 selfinsurance consists insurancerelated liabilities workers compensation general liability auto liability product liability certain employeerelated healthcare benefits 3 accrued nonincome taxes include accrued payroll property valueadded sales miscellaneous taxes 4 accrued liabilities consist various items interest maintenance utilities legal contingencies advertising note 6 shortterm borrowings longterm debt shortterm borrowings consist commercial paper lines credit shortterm borrowings january 31 2020 2019 06 billion 52 billion respectively weightedaverage interest rates 50 27 respectively shortterm borrowings january 31 2020 primarily outside us company various committed lines credit us totaling 150 billion january 31 2020 2019 respectively committed lines credit summarized following table 1 may 2019 company renewed extended existing fiveyear credit facility existing 364day revolving credit facility used support commercial paper program committed lines credit table mature various times may 2020 may 2024 carry interest rates generally ranging libor plus 10 basis points libor plus 75 basis points incur commitment fees ranging 15 40 basis points conjunction committed lines credit listed table company agreed observe certain covenants restrictive relates maximum amount secured debt additionally company also maintains committed lines credit outside us available amounts approximately 30 billion january 31 2020 2019 respectively approximately 01 billion 02 billion drawn january 31 2020 2019 respectively apart committed lines credit company syndicated fronted letters credit available totaling 18 billion january 31 2020 2019 respectively 16 billion drawn january 31 2020 2019 respectively company also trade letters credit without stated limits 02 billion 04 billion drawn january 31 2020 2019 respectively companys longterm debt includes fair value instruments discussed note 8 consists following january 31 2020 2019 1 average rate represents weightedaverage stated rate corresponding debt category based yearend balances yearend interest rates 2 includes deferred loan costs discounts fair value hedges foreignheld debt secured debt annual maturities longterm debt next five years thereafter follows debt issuances information longterm debt issued fiscal 2020 general corporate purposes follows information longterm debt issued fiscal 2019 fund portion purchase price flipkart acquisition general corporate purposes follows fiscal 2020 fiscal 2019 issuances senior unsecured notes rank equally senior unsecured debt obligations company convertible exchangeable issuances contain financial covenants restrict companys ability pay dividends repurchase company stock repayments following table provides details debt repayments fiscal 2020 1 includes repayments smaller longterm debt matured several nonus operations following table provides details debt repayments fiscal 2019 1 includes repayments smaller longterm debt matured several nonus operations note 7 leases company leases certain retail locations distribution fulfillment centers warehouses office spaces land equipment throughout us internationally companys lease costs recognized consolidated statement income consist following 1 rentals including amounts applicable taxes insurance maintenance operating expenses contingent rentals operating leases shortterm rental arrangements 30 billion 29 billion fiscal 2019 2018 respectively lease information follows aggregate annual lease obligations january 31 2020 follows upon adoption asu 201602 leases topic 842 companys aggregate annual lease obligations includes leases reasonably assured renewals aggregate minimum annual lease rentals january 31 2019 remaining contractual term noncancelable leases asc 840 follows 1 represents minimum contractual obligation noncancelable leases initial remaining terms greater 12 months january 31 2019 note 8 fair value measurements assets liabilities recorded fair value measured using fair value hierarchy prioritizes inputs used measuring fair value levels fair value hierarchy • level 1 observable inputs quoted prices active markets • level 2 inputs quoted prices active markets either directly indirectly observable • level 3 unobservable inputs little market data exists therefore requiring company develop assumptions company measures fair value equity investments primarily investment jd recurring basis records longterm assets accompanying consolidated balance sheets measurement details companys two portions investment jd follows • purchased portion investment jd measured using level 1 inputs • portion investment jd received exchange selling certain assets related yihaodian companys former ecommerce operation china measured using level 2 inputs fair value determined primarily using quoted prices active markets similar assets fair value companys investment jd follows derivatives company also derivatives recorded fair value derivative fair values estimated amounts company would receive pay upon termination related derivative agreements reporting dates fair values measured using income approach level 2 inputs include relevant interest rate foreign currency forward curves january 31 2020 january 31 2019 notional amounts fair values derivatives follows 1 classified longterm assets within companys consolidated balance sheets 2 classified deferred income taxes within companys consolidated balance sheets 3 approximately 350 million cash flow hedges classified deferred income taxes 78 million cash flow classified longterm assets companys consolidated balance sheets nonrecurring fair value measurements addition assets liabilities recorded fair value recurring basis companys assets liabilities also subject nonrecurring fair value measurements generally assets recorded fair value nonrecurring basis result impairment charges fiscal year ended january 31 2020 company recorded impairment charges related assets measured fair value nonrecurring basis primarily related following • walmart us segment 05 billion impairment charges impaired assets consisting primarily trade names acquired developed software due strategic decisions resulted writedown certain ecommerce assets • walmart international segment 04 billion impairment charges consisting primarily writeoff carrying value one flipkarts two fashion trade names jabongcom result strategic decision focus myntracom fashion platform impairment charges classified operating selling general administrative expenses companys consolidated statements income impairment charges assets measured fair value nonrecurring basis fiscal 2020 immaterial discussed note 12 company sold majority stake walmart brazil fiscal 2019 assets disposal group totaled 33 billion comprised 10 billion current assets 16 billion property equipment property capital lease financing obligations net 07 billion longterm assets measured held sale assets fully impaired carrying value disposal group exceeded fair value less costs sell contributed pretax net loss 48 billion walmart international segment recorded gains losses companys consolidated statement income impairment charges assets measured fair value nonrecurring basis fiscal 2019 immaterial fair value disclosures company records cash equivalents restricted cash shortterm borrowings cost carrying values instruments approximate fair value due shortterm maturities companys longterm debt also recorded cost fair value estimated using level 2 inputs based companys current incremental borrowing rate similar types borrowing arrangements carrying value fair value companys longterm debt january 31 2020 2019 follows note 9 taxes components income loss income taxes follows summary provision income taxes follows december 2017 tax act enacted significantly changed us income tax law beginning january 2018 tax act reduced us statutory tax rate created new taxes focused foreignsourced earnings relatedparty payments including creation base erosion antiabuse tax new tax global intangible lowtaxed income gilti addition company subject onetime transition tax fiscal 2018 accumulated foreign subsidiary earnings previously subject us income tax sec staff issued staff accounting bulletin 118 income tax accounting implications tax cuts jobs act sab 118 allowed companies record provisional amounts measurement period extend beyond one year enactment date due timing enactment complexity involved applying provisions tax act company made reasonable estimates effects recorded provisional amounts financial statements january 31 2018 accordance sab 118 company elected apply measurement period provisions guidance certain income tax effects tax act became effective provisional measurement period ended fourth quarter fiscal 2019 management completed companys accounting tax reform fiscal 2019 based prevailing regulations currently available information additional guidance issued irs could impact aforementioned amounts future periods net tax benefit recognized fiscal 2018 related tax act 207 million fiscal 2019 company recorded 442 million additional tax expense related tax act included component provision income taxes onetime transition tax act required company pay us income taxes accumulated foreign subsidiary earnings previously subject us income tax rate 155 extent foreign cash certain net current assets defined tax act 80 remaining earnings fiscal 2018 company recorded provisional amount 19 billion additional income tax expense onetime transitional tax liability company calculated transition tax liability increased provisional amount 413 million increase included component provision income taxes fiscal 2019 deferred tax effects tax act reduced us statutory tax rate 350 210 beginning january 2018 accordingly company remeasured deferred taxes january 31 2018 reflect reduced rate apply future periods deferred taxes settled realized fiscal 2018 company recognized deferred tax benefit 21 billion reflect reduced us tax rate effects tax act fiscal 2018 company made provisional adjustment respect gilti provision tax act upon finalizing provisional accounting remeasurement us deferred tax assets liabilities fiscal 2019 company recorded additional tax benefit 75 million included component provision income taxes effective income tax rate reconciliation past companys effective income tax rate typically lower us statutory tax rate primarily benefits lowertaxed global operations partially offset valuation allowance however beginning january 2018 us statutory rate 210 generally falls statutory rates international jurisdictions reconciliation significant differences us statutory tax rate effective income tax rate pretax income continuing operations follows deferred taxes significant components companys deferred tax account balances follows deferred taxes noted classified follows companys consolidated balance sheets unremitted earnings prior tax act company asserted unremitted earnings foreign subsidiaries considered indefinitely reinvested result tax act company reported paid us tax majority previously unremitted foreign earnings repatriations foreign earnings generally free us federal tax may incur taxes withholding state taxes january 31 2020 company recorded approximately 3 billion deferred tax liabilities associated remaining unremitted foreign earnings considered indefinitely reinvested us foreign income withholding taxes would due upon repatriation net operating losses tax credit carryforwards valuation allowances january 31 2020 companys net operating loss capital loss carryforwards totaled approximately 378 billion carryforwards approximately 252 billion expire utilized various years 2040 remaining carryforwards expiration recoverability future tax deductions credits evaluated assessing adequacy future expected taxable income sources including taxable income prior carryback years reversal taxable temporary differences forecasted operating earnings available tax planning strategies extent company consider likely deferred tax asset recovered valuation allowance generally established extent valuation allowance established subsequently determined likely deferred tax assets recovered change valuation allowance recognized consolidated statements income company valuation allowances 86 billion 24 billion january 31 2020 2019 respectively deferred tax assets associated primarily net operating loss carryforwards management determined likely deferred tax assets realized due tax law changes luxembourg enacted december 2019 company recognized additional deferred tax assets related valuation allowances 62 billion associated existing net operating loss carryforwards activity valuation allowance fiscal 2020 related valuation allowance increases markets well releases due expiration underlying deferred tax assets uncertain tax positions benefits uncertain tax positions recorded companys consolidated financial statements determining morelikelythannot probability uncertain tax positions withstand challenge taxing authorities january 31 2020 2019 amount unrecognized tax benefits related continuing operations 18 billion 13 billion respectively amount unrecognized tax benefits would affect companys effective income tax rate 16 billion 11 billion january 31 2020 2019 respectively reconciliation unrecognized tax benefits continuing operations follows company classifies interest penalties related uncertain tax benefits interest expense operating selling general administrative expenses respectively interest expense penalties related positions immaterial fiscal 2020 2019 2018 next twelve months reasonably possible tax audit resolutions could reduce unrecognized tax benefits immaterial amount either tax positions sustained audit company agrees disallowance company focused resolving tax audits expeditiously possible result efforts unrecognized tax benefits could potentially reduced beyond provided range next twelve months company expect change material impact consolidated financial statements company remains subject income tax examinations us federal income taxes generally fiscal 2014 2017 2020 company also remains subject income tax examinations international income taxes fiscal 2013 2020 us state local income taxes generally fiscal years ended 2013 2020 exceptions company longer subject us federal state local foreign examinations tax authorities years fiscal 2012 taxes company subject tax examinations value added salesbased payroll nonincome taxes number examinations ongoing various jurisdictions certain cases company received assessments respective taxing authorities connection examinations unless otherwise indicated possible losses range possible losses associated matters individually immaterial group related matters decided adversely company could result liability material companys consolidated financial statements note 10 contingencies legal proceedings company involved number legal proceedings company made accruals respect matters appropriate reflected companys consolidated financial statements matters liability probable amount cannot reasonably estimated therefore accrual made however liability reasonably possible may material matters disclosed company may enter discussions regarding settlement matters may enter settlement agreements believes settlement best interest company shareholders unless stated otherwise matters discussed decided adversely settled company individually aggregate may result liability material companys financial condition results operations cash flows asda equal value claims asda stores ltd asda whollyowned subsidiary company defendant 35000 equal value claims began 2008 proceeding employment tribunal manchester employment tribunal united kingdom uk behalf current former asda store employees claims may asserted future claimants allege work performed employees asdas retail stores equal value terms among things demands jobs compared employees working asdas warehouse distribution facilities difference pay job positions disparately impacts women work retail stores men work warehouses distribution facilities pay difference objectively justified claimants requesting differential back pay based higher wage rates warehouse distribution facilities higher wage rates prospective basis october 2016 following preliminary hearing employment tribunal ruled claimants could compare positions asdas retail stores employees asdas warehouse distribution facilities asda appealed ruling appeal scheduled heard supreme court united kingdom july 1415 2020 notwithstanding appeal claimants proceeding next phase claims phase determine whether work performed claimants equal value work performed employees asdas warehouse distribution facilities present company cannot predict number claims may filed cannot reasonably estimate loss range loss may arise proceedings accordingly company provide assurance scope outcomes matters assurance whether business financial position results operations cash flows materially adversely affected company believes substantial factual legal defenses claims intends defend claims vigorously national prescription opiate litigation related matters december 2017 united states judicial panel multidistrict litigation consolidated numerous lawsuits filed wide array defendants various plaintiffs including counties cities healthcare providers native american tribes individuals thirdparty payors asserting claims generally concerning impacts widespread opioid abuse consolidated multidistrict litigation entitled national prescription opiate litigation mdl 2804 pending us district court northern district ohio company named defendant cases included multidistrict litigation similar cases name company also filed state courts state local tribal governments health care providers plaintiffs seeking compensatory punitive damages well injunctive relief including abatement company cannot predict number claims may filed believes substantial factual legal defenses claims intends defend claims vigorously company also responding subpoenas information requests investigations governmental entities related nationwide controlled substance dispensing distribution practices involving opioids company cannot reasonably estimate loss range loss may arise matters accordingly company provide assurance scope outcome matters assurance whether business financial position results operations cash flows materially adversely affected fcpa investigation related matters previously disclosed company investigation us department justice doj securities exchange commission sec regarding possible violations us foreign corrupt practices act fcpa throughout investigative process company cooperated doj sec june 20 2019 company announced resolution investigations doj sec paid 283 million june 2019 consisting combination penalties disgorgement interest described settlement amount company previously recorded settlement amount companys fiscal 2018 consolidated financial statements anticipated settlement matters resolution investigations doj sec included 1 nonprosecution agreement npa doj company threeyear term pursuant npa company paid 138 million penalty agreed maintain companys anticorruption compliance program three years certain reporting obligations three years limited monitorship thirdparty two years regarding companys anticorruption compliance program possibility third year pending results monitorship initial twoyear period doj agreed prosecute company conduct described npa provided company performs obligations npa threeyear term 2 plea agreement plea agreement entered threeyear term doj wmt brasilia sarl indirect whollyowned foreign subsidiary company wmt brasilia previously owned majority stake companys brazilian business plea agreement entered united states district court eastern district virginia wmt brasilia pled guilty one count causing books records violation fcpa company behalf wmt brasilia assessed 4 million penalty including forfeiture deducted amount paid company npa 3 ceaseanddesist order entered sec civil administrative proceeding sec order entry company consented respect certain violations books records internal controls provisions fcpa company paid 145 million disgorgement interest agreed make certain reports sec anticorruption compliance remediation efforts two years cease desist violations books records internal controls provisions fcpa june 20 2019 company also entered administrative agreement us environmental protection agency epa threeyear term replaces interim administrative agreement company epa dated may 28 2013 may 28 2013 agreement arose part settlement company regarding certain hazardous waste materials matters several governmental authorities new epa agreement among things resolved debarment suspension participation federal government programs company due npa plea agreement sec order provided company fulfills terms conditions new epa agreement requires reporting company epa periodically threeyear term requires new limited twoyear monitorship monitor referenced engaged company npa also monitor compliance new epa agreement doj monitorship extended referenced epa monitorship may also extended additional year addition company expects incur costs implementing settlement may incur costs responding new civil regulatory actions company presently believe matters material adverse effect business financial position results operations cash flows note 11 retirementrelated benefits company offers 401k plan associates us eligible associates begin contributing plan immediately upon hire company also offers 401k type plan associates puerto rico associates begin contribute generally one year employment plans one year employment company matches 100 participant contributions 6 annual eligible earnings matching contributions immediately vest 100 associate participants contribute 50 pretax earnings statutory limits associates international countries us citizens covered various defined contribution postemployment benefit arrangements plans administered based upon legislative tax requirements countries established following table summarizes contribution expense related companys defined contribution plans fiscal 2020 2019 2018 additionally companys subsidiaries united kingdom japan sponsored defined benefit pension plans october 2019 asda walmart trustee asda group pension scheme plan entered agreement pursuant asda made cash contribution 10 billion plan asda pension contribution enabled plan purchase bulk annuity insurance contract benefit plan participants agreement asda walmart trustee plan contemplates subsequent purchase bulk annuity insurance contract plan participants issued individual annuity contract issuer individual annuity insurance contracts solely responsible paying participant’s benefits full release plan asda future obligations company expects issuance individual annuity contracts plan participants take place late fiscal 2021 early fiscal 2022 trigger pension settlement result plan balances including accumulated pension components within comprehensive income charged expense defined benefit pension plan japan underfunded 140 million 175 million january 31 2020 2019 respectively recorded liability companys consolidated balance sheets deferred income taxes certain international operations also defined benefit arrangements significant note 12 disposals acquisitions related items following material disposals acquisitions items impact companys walmart international segment immaterial transactions also occurred announced walmart brazil august 2018 company sold 80 percent stake walmart brazil advent international advent terms sale advent agreed contribute additional capital business threeyear period walmart agreed indemnify advent certain matters result company recorded pretax net loss 48 billion fiscal 2019 gains losses companys consolidated statement income substantially charge recorded second quarter fiscal 2019 upon meeting held sale criteria calculating loss fair value disposal group reduced 08 billion related indemnity liability recognized upon closing recorded deferred income taxes companys consolidated balance sheets indemnity company indemnify advent certain preclosing tax legal contingencies matters r23 billion adjusted interest based brazilian interbank deposit rate company deconsolidated financial statements walmart brazil third quarter fiscal 2019 began accounting remaining 20 percent ownership interest using equity method accounting equity method investment determined fair value continues carrying value flipkart august 2018 company acquired 81 percent outstanding shares 77 percent diluted shares flipkart indianbased ecommerce marketplace cash consideration approximately 16 billion acquisition increases companys investment india large growing economy second quarter fiscal 2020 company finalized valuation assets acquired liabilities assumed flipkart acquisition follows • assets 241 billion comprise primarily 22 billion cash equivalents 28 billion current assets 50 billion intangible assets 135 billion goodwill intangible assets 47 billion represents fair value trade names indefinite life estimated using income approach based level 3 unobservable inputs remaining 03 billion intangible assets primarily relate acquired technology life 3 years goodwill arising acquisition consists largely anticipated synergies economies scale primarily related procurement logistics expected deductible tax purposes • liabilities 37 billion comprise primarily 18 billion current liabilities 17 billion deferred income taxes • noncontrolling interest 43 billion fair value estimated using income approach based level 3 unobservable inputs company began consolidating financial statements flipkart third quarter fiscal 2019 using onemonth lag finance acquisition company used combination cash provided longterm debt discussed note 6 cash hand flipkart results operations since acquisition pro forma financial information immaterial note 13 segments disaggregated revenue segments company engaged operation retail wholesale units well ecommerce websites located throughout us africa argentina canada central america chile china india japan mexico united kingdom company previously operated brazil prior sale majority stake walmart brazil fiscal 2019 discussed note 12 companys operations conducted three reportable segments walmart us walmart international sams club company defines segments operations whose results chief operating decision maker codm regularly reviews analyze performance allocate resources company sells similar individual products services segments impracticable segregate identify revenues individual products services walmart us segment includes companys mass merchant concept us well ecommerce omnichannel initiatives walmart international segment consists companys operations outside us well ecommerce omnichannel initiatives sams club segment includes warehouse membership clubs us well samsclubcom omnichannel initiatives corporate support consists corporate overhead items allocated companys segments company measures results segments using among measures segments net sales operating income includes certain corporate overhead allocations time company revises measurement segments operating income including corporate overhead allocations determined information regularly reviewed codm information companys segments well corporate support including reconciliation income taxes provided following table total revenues consisting net sales membership income longlived assets consisting primarily property equipment net lease rightofuse assets aggregated companys us nonus operations fiscal 2020 2019 2018 follows individual country outside us total revenues longlived assets material consolidated totals additionally company generate material total revenues single customer disaggregated revenues following tables segment net sales disaggregated either merchandise category market addition net sales related ecommerce provided segment include omnichannel sales customer initiates order online order fulfilled store club walmart uss total net sales approximately 215 billion 157 billion related ecommerce fiscal 2020 fiscal 2019 respectively internationals total net sales approximately 118 billion 67 billion related ecommerce fiscal 2020 fiscal 2019 respectively sams clubs total net sales approximately 36 billion 27 billion related ecommerce fiscal 2020 fiscal 2019 respectively note 14 subsequent event dividends declared board directors approved effective february 18 2020 fiscal 2021 annual dividend 216 per share increase fiscal 2020 dividend 212 per share fiscal 2021 annual dividend paid four quarterly installments 054 per share according following record payable dates note 15 quarterly financial data unaudited 1 sum quarterly amounts may agree annual amount due rounding impact decreasing amount shares outstanding year item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements report independent auditors pages 26 38 annual report shareholders year ended january 31 1998 item 9item 8 financial statements supplementary data information required item furnished incorporation reference information captions consolidated statements income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements report independent auditors pages 26 38 annual report shareholders year ended january 31 1999 item 9item 8 financial statements supplementary data information required item incorporated reference information captions consolidated statements income consolidated statements comprehensive income consolidated balance sheets consolidated statements shareholders equity consolidated statements cash flows notes consolidated financial statements report independent registered public accounting firm included annual report shareholders information included exhibit annual report form 10k item 9 nannannannannannanitem 15 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 21 annual report incorporated reference herein filed part form 10k b reports form 8k page 20 26 index consolidated financial statements schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto page 21 26 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized walmart stores inc pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated page 22 26 page 23 26 page 24 26 certifications h lee scott jr certify reviewed annual report form 10k walmart stores inc registrant based knowledge annual report contain untrue statement material fact omit state material fact necessary make statements made light circumstances statements made misleading respect period covered annual report based knowledge financial statements financial information included annual report fairly present material respects financial condition results operations cash flows registrant periods presented annual report registrants certifying officers responsible establishing maintaining disclosure controls procedures defined exchange act rules 13a14 15d14 registrant designed disclosure controls procedures ensure material information relating registrant including consolidated subsidiaries made known us others within entities particularly period annual report prepared evaluated effectiveness registrants disclosure controls procedures date within 90 days prior filing date annual report evaluation date presented annual report conclusions effectiveness disclosure controls procedures based evaluation date registrants certifying officers disclosed based recent evaluation registrants auditors audit committee registrants board directors persons performing equivalent function significant deficiencies design operation internal controls could adversely affect registrants ability record process summarize report financial data identified registrants auditors material weaknesses internal controls fraud whether material involves management employees significant role registrants internal controls registrants certifying officers indicated annual report whether significant changes internal controls factors could significantly affect internal controls subsequent date recent evaluation including corrective actions regard significant deficiencies material weaknesses date april 15 2003 h lee scott jr h lee scott jr president chief executive officer page 25 26 thomas schoewe certify reviewed annual report form 10k walmart stores inc registrant based knowledge annual report contain untrue statement material fact omit state material fact necessary make statements made light circumstances statements made misleading respect period covered annual report based knowledge financial statements financial information included annual report fairly present material respects financial condition results operations cash flows registrant periods presented annual report registrants certifying officers responsible establishing maintaining disclosure controls procedures defined exchange act rules 13a14 15d14 registrant designed disclosure controls procedures ensure material information relating registrant including consolidated subsidiaries made known us others within entities particularly period annual report prepared evaluated effectiveness registrants disclosure controls procedures date within 90 days prior filing date annual report evaluation date presented annual report conclusions effectiveness disclosure controls procedures based evaluation date registrants certifying officers disclosed based recent evaluation registrants auditors audit committee registrants board directors persons performing equivalent function significant deficiencies design operation internal controls could adversely affect registrants ability record process summarize report financial data identified registrants auditors material weaknesses internal controls fraud whether material involves management employees significant role registrants internal controls registrants certifying officers indicated annual report whether significant changes internal controls factors could significantly affect internal controls subsequent date recent evaluation including corrective actions regard significant deficiencies material weaknesses date april 15 2003 thomas schoewe thomas schoewe executive vice president chief financial officer page 26 26item 15 exhibits financial statement schedules reports form 8k 1 2 consolidated financial statements financial statements listed index consolidated financial statements appears page 26 annual report incorporated reference herein filed part form 10k exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15c report b reports form 8k 1 company furnished report form 8k february 18 2003 providing item 7 “financial statements exhibits” item 9 “regulation fd disclosure” press release issued company regarding results operations fourth quarter fiscal year ended january 31 2003 2 company filed report form 8k february 19 2003 reporting item 5 “other events required fd disclosure” mr charles holley became senior vice president controller company effective january 21 2003 principal accounting officer company 3 company furnished report form 8ka february 21 2003 providing item 7 “financial statements exhibits” item 9 “regulation fd disclosure” corrected copy press release issued february 18 2003 4 company filed report form 8k february 24 2003 reporting item 5 “other events” company completed sale morgan stanley co incorporated 1500000000 aggregate principal amount company’s floating rate notes due 2005 pursuant pricing agreement dated february 18 2003 company morgan stanley co incorporated company included item 7 “financial statements exhibits” material documentation regarding sale company’s floating rate notes due 2005 5 company filed report form 8k april 29 2003 reporting item 5 “other events” company completed underwritten offer sale 1500000000 aggregate principal amount company’s 455 notes due 2013 pursuant pricing agreement “pricing agreement” dated april 22 2003 company lehman brothers inc deutsche bank securities inc goldman sachs co acting representatives underwriters named schedule pricing agreement company included item 7 “financial statements exhibits” material documentation regarding sale company’s 455 notes due 2013 6 company furnished report form 8k may 7 2003 providing item 12 “results operations financial condition” press release issued may 8 2003 disclosing information regarding company’s results operations fiscal quarter ended april 30 2003 7 company furnished report form 8k may 13 2003 providing item 12 “results operations financial condition” press release issued may 13 2003 disclosing information regarding company’s results operations fiscal quarter ended april 30 2003 8 company furnished report form 8k august 7 2003 providing item 12 “results operations financial condition” press release issued august 7 2003 disclosing information regarding company’s expected results operations fiscal quarter ended july 31 2003 9 company furnished report form 8k august 13 2003 providing item 12 “results operations financial condition” press release issued august 13 2003 disclosing information regarding company’s results operations fiscal quarter ended july 31 2003 10 company filed report form 8k september 30 2003 reporting item 5 “other events” company completed underwritten offer sale 1000000000 aggregate principal amount company’s 3375 notes due 2008 pursuant pricing agreement “pricing agreement” dated september 25 2003 company jp morgan securities inc credit suisse first boston llc acting representatives underwriters named schedule pricing agreement company included item 7 “financial statements exhibits” material documentation regarding sale company’s 3375 notes due 2008 addition company furnished item 9 “regulation fd disclosure” information regarding certain reclassifications restatements amounts included consolidated balance sheets consolidated statements results operations company subsidiaries 11 company filed report form 8k october 7 2003 reporting item 5 “other events” company completed underwritten offer sale 1000000000 aggregate principal amount company’s 3375 notes due 2008 pursuant pricing agreement “pricing agreement” dated september 25 2003 company jp morgan securities inc credit suisse first boston llc acting representatives underwriters named schedule pricing agreement company included item 7 “financial statements exhibits” opinion hughes luce llp regarding legality company’s 3375 notes due 2008 12 company furnished report form 8k november 13 2003 providing item 12 “results operations financial condition” press release issued november 13 2003 disclosing information regarding company’s results operations fiscal quarter ended october 31 2003 index consolidated financial statements schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicateditem 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated reference herein filed part annual report form 10k financial statements located exhibit 13 filed herewith schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized walmart stores inc date march 31 2005 h lee scott jr h lee scott jr president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicateditem 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated herein reference portions annual report form 10k filed exhibit 13 hereto schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized walmart stores inc pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicateditem 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated herein reference portions annual report form 10k filed exhibit 13 hereto schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2007 signature page walmart stores inc form 10k fiscal year ended january 31 2007item 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated herein reference portions annual report form 10k filed exhibit 13 hereto schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2008 signature page walmart stores inc form 10k fiscal year ended january 31 2008item 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated herein reference portions annual report form 10k filed exhibit 13 hereto schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k 3a restated certificate incorporation company incorporated herein reference exhibit 3a annual report form 10k company year ended january 31 1989 document may found reviewed sec’s public reference room 100 f street ne room 1580 washington dc 20549 files therein relating company whose sec file number 16991 certificate amendment restated certificate incorporation incorporated herein reference registration statement form s8 file number 3313315 certificate amendment restated certificate incorporation incorporated hereby reference current report form 8k company dated august 11 1999 document may found reviewed sec’s public reference room 100 f street ne room 1580 washington dc 20549 files therein relating company whose sec file number 16991 3b amended restated bylaws company incorporated herein reference exhibit 31 current report form 8k company dated september 25 2006 4a form indenture dated june 1 1985 company bank new york trustee formerly boatmen’s trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 297917 4b form indenture dated august 1 1985 company bank new york trustee formerly boatmen’s trust company centerre trust company incorporated herein reference exhibit 4c registration statement form s3 file number 299162 4c form amended restated indenture mortgage deed trust assignment rents security agreement dated december 1 1986 among first national bank boston james e mogavero owner trustees rewal corporation estate years holder rewal corporation ii remainderman company first national bank chicago rd manella indenture trustees incorporated herein reference exhibit 4b registration statement form s3 file number 3311394 4d form indenture dated july 15 1990 company harris trust savings bank trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3335710 4e indenture dated april 1 1991 company jp morgan trust company national association successor trustee bank one trust company na successor trustee first national bank chicago trustee incorporated herein reference exhibit 4a registration statement form s3 file number 3351344 4f first supplemental indenture dated september 9 1992 indenture dated april 1 1991 company jp morgan trust company national association successor trustee bank one trust company na successor trustee first national bank chicago trustee incorporated herein reference exhibit 4b registration statement form s3 file number 3351344 4g indenture dated july 5 2001 company jp morgan trust company national association successor trustee bank one trust company na incorporated reference exhibit 41 registration statement form s3 file number 33364740 4h indenture dated december 11 2002 company jp morgan trust company national association successor trustee bank one trust company na incorporated reference exhibit 45 registration statement form s3 file number 333101847 4i indenture dated july 19 2005 company jp morgan trust company national association incorporated reference exhibit 45 registration statement form s3 file number 333126512 4j first supplemental indenture dated december 1 2006 walmart stores inc bank new york trust company na successorininterest jp morgan trust company national association trustee indenture dated july 19 2005 walmart stores inc jp morgan trust company national association trustee incorporated herein reference exhibit 46 posteffective amendment 1 registration statement form s3 file number 333130569 10a form individual deferred compensation agreements incorporated herein reference exhibit 10b annual report form 10k company amended fiscal year ended january 31 1986 document may found reviewed sec’s public reference room 100 f street ne room 1580 washington dc 20549 files therein relating company whose sec file number 16991 10b walmart stores inc stock option plan 1994 incorporated herein reference exhibit 4c registration statement form s8 file number 3355325 10c walmart stores inc officer deferred compensation plan amended restated effective march 31 2003 incorporated herein reference exhibit 10g annual report form 10k company fiscal year ended january 31 2004 filed april 9 2004 10d walmart stores inc restricted stock plan incorporated herein reference exhibit 10j annual report form 10k company fiscal year ended january 31 1997 filed april 21 1997 10e walmart stores inc management incentive plan amended restated effective february 1 2003 incorporated herein reference exhibit 10l annual report form 10k company fiscal year ended january 31 2004 filed april 9 2004 10f rules asda sharesave plan 2000 amended june 4 2004 incorporated reference exhibit 10m annual report form 10k company fiscal year ended january 31 2005 filed march 31 2005 10g asda colleague share ownership plan 1999 amended june 4 2004 incorporated reference exhibit 10n annual report form 10k company fiscal year ended january 31 2005 filed march 31 2005 10h retirement agreement dated january 22 2005 company thomas coughlin incorporated reference exhibit 101 current report form 8k company dated january 25 2005 10i form notice non qualified stock option grant amended january 3 2005 incorporated reference exhibit 10p annual report form 10k company fiscal year ended january 31 2005 filed march 31 2005 10j form notification restricted stock award terms conditions award amended january 3 2005 incorporated reference exhibit 10q annual report form 10k company fiscal year ended january 31 2005 filed march 31 2005 10k form notification stock value equivalent award terms conditions award incorporated reference exhibit 10r annual report form 10k company fiscal year ended january 31 2005 filed march 31 2005 10l form post termination agreement covenant compete attached schedule executive officers executed posttermination agreement covenant compete together summary material differences form agreement filed incorporated reference exhibit 10o amendment 1 annual report form 10k company fiscal year ended january 31 2004 filed august 26 2004 10m walmart stores inc 2004 associate stock purchase plan amended restated effective february 1 2004 incorporated reference exhibit 10p annual report form 10k company fiscal year ended january 31 2005 filed march 31 2005 10n walmart stores inc stock incentive plan 2005 amended january 1 2005 incorporated reference exhibit 101 current report form 8k company dated june 9 2005 10o form walmart stores inc stock incentive plan notice non qualified stock option grant incorporated reference exhibit 102 current report form 8k company dated june 9 2005 10p form walmart stores inc stock incentive plan restrictive stock award notification award terms conditions award incorporated reference exhibit 103 current report form 8k company dated june 9 2005 10q form walmart stores inc stock incentive plan performance share award notification award terms conditions award incorporated reference exhibit 104 current report form 8k company dated june 9 2005 10r form walmart stores inc stock incentive plan performance based restrictive stock award notification award terms conditions award incorporated reference exhibit 101 current report form 8k company dated september 28 2005 10s amendment form posttermination agreement covenant compete agreements incorporated reference exhibit 101 current report form 8k company dated december 12 2005 10t amendment form posttermination agreement covenant compete agreements incorporated reference exhibit 102 current report form 8k company dated december 12 2005 10u walmart stores inc supplemental executive retirement plan amended effective january 1 2005 incorporated reference exhibit 101 current report form 8k company dated march 7 2006 10v separation agreement walmart stores inc john b menzer dated january 21 2008 incorporated reference exhibit 101 current report form 8k company dated january 25 2008 10w walmart stores inc director compensation plan amended restated effective january 1 2005 except otherwise provided therein incorporated reference exhibit 102 current report form 8k company dated march 7 2006 10x agreement walmart stores inc h lee scott jr dated november 20 2008 incorporated reference exhibit 101 current report form 8k company dated november 21 2008 12 statement computation ratios 13 portions annual report shareholders fiscal year ending january 31 2009 information incorporated reference items 1 2 3 5 6 7 7a 8 9a annual report form 10k annual report shareholders fiscal year ended january 31 2009 filed sec balance information annual report shareholders furnished sec accordance item 601b 13 regulation sk 21 list company’s significant subsidiaries 23 consent independent registered public accounting firm 311 chief executive officer section 302 certification 312 chief financial officer section 302 certification 321 chief executive officer section 906 certification 322 chief financial officer section 906 certification filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2009 signature page walmart stores inc form 10k fiscal year ended january 31 2009item 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated herein reference portions annual report form 10k filed exhibit 13 hereto schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2010 signature page walmart stores inc form 10k fiscal year ended january 31 2010item 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated herein reference portions annual report form 10k filed exhibit 13 hereto schedules omitted required information present amounts sufficient require submission schedule information required included financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2011 signature page walmart stores inc form 10k fiscal year ended january 31 2011item 15 exhibits financial statement schedules 1 2 consolidated financial statements financial statements listed following table included annual report shareholders incorporated herein reference portions annual report form 10k filed exhibit 13 hereto certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits following documents filed exhibits form 10k filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2012 signature page walmart stores inc form 10k fiscal year ended january 31 2012item 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see financial statements incorporated herein reference portions annual report shareholders filed exhibit 13 hereto 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits required exhibits included end form 10k incorporated herein reference described exhibit index immediately preceding first exhibit annual report form 10k b financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2014 signature page walmart stores inc form 10k fiscal year ended january 31 2014 signature page walmart stores inc form 10k fiscal year ended january 31 2014 exhibit index following exhibits filed part form 10k incorporated herein reference filed herewith exhibit furnished herewith exhibititem 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see financial statements incorporated herein reference portions annual report shareholders filed exhibit 13 hereto 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits required exhibits included end form 10k incorporated herein reference described exhibit index immediately preceding first exhibit annual report form 10k b exhibits furnished annual report form 10k accordance requirement form 10k sec listed exhibit index appears immediately following signature pages annual report form 10k incorporated item 15b reference exhibit index c financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized walmart stores inc date april 1 2015 c douglas mcmillon c douglas mcmillon president chief executive officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated date april 1 2015 c douglas mcmillon c douglas mcmillon president chief executive officer director principal executive officer date april 1 2015 robson walton robson walton chairman board director date april 1 2015 charles holley jr charles holley jr executive vice president chief financial officer principal financial officer date april 1 2015 steven p whaley steven p whaley senior vice president controller principal accounting officer signature page walmart stores inc form 10k fiscal year ended january 31 2015 signature page walmart stores inc form 10k fiscal year ended january 31 2015 signature page walmart stores inc form 10k fiscal year ended january 31 2015 exhibit index following exhibits filed part form 10k incorporated herein reference filed herewith exhibit furnished herewith exhibit notes exhibit index 1 exhibits listed exhibit index incorporated exhibits annual report form 10k walmart stores inc company fiscal year ended january 31 2015 reference annual report form 10k quarterly report form 10q current report form 8k company previously filed sec company available review online edgar system sec wwwsecgov exhibits annual report form 10k quarterly report form 10q current report form 8k referred description exhibit incorporated reference 2 company subsidiaries past issued may future issue time longterm debt instruments aggregate principal amount debt instruments one series debt instruments exceeded exceed 10 assets company pertinent time company previously filed sec agreement hereby agrees file copies agreements relating longterm debt instruments representing evidencing longterm debt instruments sec upon request result accordance provisions paragraph b4iiia item 601 regulation sk sec copies long term debt instruments filed exhibits annual report form 10k company fiscal year ended january 31 2015 company previously filed documents instruments establishing specific terms longterm debt instruments offered sold company pursuant effective registration statements filed sec pursuant securities act 1933 amended exhibits applicable registration statement exhibits current report form 8k filed connection applicable registration statement sale issuance longterm debt instrumentsitem 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see financial statements incorporated herein reference portions annual report shareholders filed exhibit 13 hereto 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits required exhibits included end form 10k incorporated herein reference described exhibit index immediately preceding first exhibit annual report form 10k b exhibits furnished annual report form 10k accordance requirement form 10k sec listed exhibit index appears immediately following signature pages annual report form 10k incorporated item 15b reference exhibit index c financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2016 signature page walmart stores inc form 10k fiscal year ended january 31 2016 signature page walmart stores inc form 10k fiscal year ended january 31 2016 exhibit index12 following exhibits filed part form 10k incorporated herein reference filed herewith exhibit furnished herewith exhibit notes exhibit index 1 exhibits listed exhibit index incorporated exhibits annual report form 10k walmart stores inc company fiscal year ended january 31 2016 reference annual report form 10k quarterly report form 10q current report form 8k company previously filed sec company available review online edgar system sec wwwsecgov exhibits annual report form 10k quarterly report form 10q current report form 8k referred description exhibit incorporated reference historical filings company may reviewed copied public reference room sec 100 f street ne washington dc 205492521 commission file 0016991 2 company subsidiaries past issued may future issue time longterm debt instruments aggregate principal amount debt instruments one series debt instruments exceeded exceed 10 assets company pertinent time company previously filed sec agreement hereby agrees file copies agreements relating longterm debt instruments representing evidencing longterm debt instruments sec upon request result accordance provisions paragraph b4iiia item 601 regulation sk sec copies longterm debt instruments filed exhibits annual report form 10k company fiscal year ended january 31 2016 company previously filed documents instruments establishing specific terms longterm debt instruments offered sold company pursuant effective registration statements filed sec pursuant securities act 1933 amended exhibits applicable registration statement exhibits current report form 8k filed connection applicable registration statement sale issuance longterm debt instrumentsitem 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see financial statements incorporated herein reference portions annual report shareholders filed exhibit 13 hereto 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits required exhibits included end form 10k incorporated herein reference described exhibit index immediately preceding first exhibit annual report form 10k b exhibits furnished annual report form 10k accordance requirement form 10k sec listed exhibit index appears immediately following signature pages annual report form 10k incorporated item 15b reference exhibit index c financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2017 signature page walmart stores inc form 10k fiscal year ended january 31 2017 exhibit index12 following exhibits filed furnished part form 10k incorporated herein reference filed herewith exhibit furnished herewith exhibit notes exhibit index 1 exhibits listed exhibit index incorporated exhibits annual report form 10k walmart stores inc company fiscal year ended january 31 2017 reference annual report form 10k quarterly report form 10q current report form 8k company previously filed sec company available review online edgar system sec wwwsecgov exhibits annual report form 10k quarterly report form 10q current report form 8k referred description exhibit incorporated reference historical filings company may reviewed copied public reference room sec 100 f street ne washington dc 205492521 commission file 0016991 2 company subsidiaries past issued may future issue time longterm debt instruments aggregate principal amount debt instruments one series debt instruments exceeded exceed 10 assets company pertinent time company previously filed sec agreement hereby agrees file copies agreements relating longterm debt instruments representing evidencing longterm debt instruments sec upon request result accordance provisions paragraph b4iiia item 601 regulation sk sec copies longterm debt instruments filed exhibits annual report form 10k company fiscal year ended january 31 2017 company previously filed documents instruments establishing specific terms longterm debt instruments offered sold company pursuant effective registration statements filed sec pursuant securities act 1933 amended exhibits applicable registration statement exhibits current report form 8k filed connection applicable registration statement sale issuance longterm debt instrumentsitem 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see financial statements part ii item 8 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits required exhibits included end form 10k incorporated herein reference described exhibit index immediately preceding first exhibit annual report form 10k b exhibits furnished annual report form 10k accordance requirement form 10k sec listed exhibit index appears immediately following signature pages annual report form 10k incorporated item 15b reference exhibit index c financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart inc form 10k fiscal year ended january 31 2018 signature page walmart inc form 10k fiscal year ended january 31 2018 exhibit index12 following exhibits filed furnished part form 10k incorporated herein reference filed herewith exhibit furnished herewith exhibit p exhibit originally filed paper format accordingly hyperlink provided notes exhibit index 1 exhibits listed exhibit index incorporated exhibits annual report form 10k walmart inc company fiscal year ended january 31 2018 reference annual report form 10k quarterly report form 10q current report form 8k company previously filed sec company available review online edgar system sec wwwsecgov exhibits annual report form 10k quarterly report form 10q current report form 8k referred description exhibit incorporated reference historical filings company may reviewed copied public reference room sec 100 f street ne washington dc 205492521 commission file 0016991 2 company subsidiaries past issued may future issue time longterm debt instruments aggregate principal amount debt instruments one series debt instruments exceeded exceed 10 assets company pertinent time company previously filed sec agreement hereby agrees file copies agreements relating longterm debt instruments representing evidencing longterm debt instruments sec upon request result accordance provisions paragraph b4iiia item 601 regulation sk sec copies longterm debt instruments filed exhibits annual report form 10k company fiscal year ended january 31 2018 company previously filed documents instruments establishing specific terms longterm debt instruments offered sold company pursuant effective registration statements filed sec pursuant securities act 1933 amended exhibits applicable registration statement exhibits current report form 8k filed connection applicable registration statement sale issuance longterm debt instrumentsitem 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see financial statements part ii item 8 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits required exhibits included end form 10k incorporated herein reference described exhibit index immediately preceding first exhibit annual report form 10k b exhibits furnished annual report form 10k accordance requirement form 10k sec listed exhibit index appears immediately following signature pages annual report form 10k incorporated item 15b reference exhibit index c financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart inc form 10k fiscal year ended january 31 2019 signature page walmart inc form 10k fiscal year ended january 31 2019 exhibit index12 following exhibits filed furnished part form 10k incorporated herein reference filed herewith exhibit furnished herewith exhibit c exhibit management contract compensatory plan arrangement p exhibit originally filed paper format accordingly hyperlink provided notes exhibit index 1 exhibits listed exhibit index incorporated exhibits annual report form 10k walmart inc company fiscal year ended january 31 2019 reference annual report form 10k quarterly report form 10q current report form 8k company previously filed sec company available review online edgar system sec wwwsecgov exhibits annual report form 10k quarterly report form 10q current report form 8k referred description exhibit incorporated reference historical filings company may reviewed copied public reference room sec 100 f street ne washington dc 205492521 commission file 0016991 2 company subsidiaries past issued may future issue time longterm debt instruments aggregate principal amount debt instruments one series debt instruments exceeded exceed 10 assets company pertinent time company previously filed sec agreement hereby agrees file copies agreements relating longterm debt instruments representing evidencing longterm debt instruments sec upon request result accordance provisions paragraph b4iiia item 601 regulation sk sec copies longterm debt instruments filed exhibits annual report form 10k company fiscal year ended january 31 2019 company previously filed documents instruments establishing specific terms longterm debt instruments offered sold company pursuant effective registration statements filed sec pursuant securities act 1933 amended exhibits applicable registration statement exhibits current report form 8k filed connection applicable registration statement sale issuance longterm debt instrumentsitem 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see financial statements part ii item 8 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits see exhibits listed part b required exhibits filed part form 10k incorporated reference herein1 filed herewith exhibit furnished herewith exhibit c exhibit management contract compensatory plan arrangement p exhibit originally filed paper format accordingly hyperlink provided 1 certain instruments defining rights holders longterm debt securities registrant omitted pursuant item601b4iii regulation sk company hereby undertakes furnish sec upon request copies instruments c financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart inc form 10k fiscal year ended january 31 2020 signature page walmart inc form 10k fiscal year ended january 31 2020nannanitem 15 exhibits financial statement schedules documents filed part report follows 1 financial statements see listing financial statements incorporated herein reference portions annual report shareholders filed exhibit 13 hereto 2 financial statement schedules certain schedules omitted required information present amounts sufficient require submission schedule information required included consolidated financial statements including notes thereto 3 exhibits required exhibits included end form 10k incorporated herein reference described exhibit index immediately preceding first exhibit b financial statement schedules none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature page walmart stores inc form 10k fiscal year ended january 31 2013 signature page walmart stores inc form 10k fiscal year ended january 31 2013 signature page walmart stores inc form 10k fiscal year ended january 31 2013 exhibit index following exhibits filed part form 10k incorporated herein reference filed herewith exhibit furnished herewith exhibit management contracts compensatory plans arrangements required filed exhibits pursuant item 15b report