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Acquisitions, Disposals and Related Items
3 Months Ended
Apr. 30, 2017
Business Combinations [Abstract]  
Acquisitions, disposals and related items
Acquisitions, Disposals and Related Items
The Company completed two e-commerce acquisitions in the three months ended April 30, 2017, which were immaterial, individually and in the aggregate, to the Company's Condensed Consolidated Financial Statements.
The following significant transaction primarily impacts the operations of the Company's Walmart U.S. segment:
Jet.com, Inc. ("jet.com")
In September 2016, the Company completed the acquisition of jet.com, a U.S.-based e-commerce company. The integration of jet.com into the Walmart U.S. e-commerce business is building upon the current e-commerce foundation, allowing for synergies from talent, logistical operations and access to a broader customer base. The total purchase price for the acquisition was $2.4 billion, net of cash acquired. The preliminary allocation of the purchase price includes $1.7 billion in goodwill and $0.6 billion in intangible assets. As part of the transaction, the Company will pay additional compensation of approximately $0.8 billion over a five year period.
The following significant transactions impact the operations of the Company's Walmart International segment:
Suburbia
In August 2016, one of the Company's subsidiaries entered into a definitive agreement to sell Suburbia, the apparel retail division in Mexico, for approximately $1.0 billion in total consideration, resulting in $698 million in current assets held for sale and $172 million in current liabilities held for sale as of April 30, 2017.  As part of the agreement, the Company is also leasing certain real estate to the purchaser. The transaction received regulatory approval and the sale closed during the Company's second quarter of fiscal 2018. The sale will result in a pre-tax gain of approximately $650 million, subject to customary closing adjustments, of which approximately $380 million will be recognized in the second quarter of fiscal 2018 and the remainder will be deferred and recognized over the lease terms of approximately 20 years. The gain to be recognized in the second quarter of fiscal 2018 will result in net income attributable to Walmart of approximately $160 million.
Yihaodian and JD
In June 2016, the Company sold certain assets relating to Yihaodian, its e-commerce operations in China, including the Yihaodian brand, website and application, to JD in exchange for Class A ordinary shares of JD representing approximately five percent of JD's outstanding ordinary shares on a fully diluted basis. The $1.5 billion investment in JD is carried at cost and is included in other assets and deferred charges in the accompanying Consolidated Balance Sheets. The sale resulted in the recognition of a $535 million noncash gain, which was included in membership and other income at that time. Subsequently, during fiscal 2017, the Company purchased $1.9 billion of additional JD shares classified as available for sale securities, representing an incremental ownership percentage of approximately five percent, for a total ownership of approximately ten percent of JD's outstanding ordinary shares.