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Acquisitions, Disposals and Related Items
3 Months Ended
Apr. 30, 2018
Business Combinations [Abstract]  
Acquisitions, disposals and related items
Acquisitions, Disposals and Subsequent Events
The following significant transactions impact, or are expected to impact, the operations of the Company's Walmart International segment. Other immaterial transactions have also occurred or been announced.
Asda
In April 2018, the Company entered into a definitive agreement and announced the combination of J Sainsbury plc and Asda Group Limited ("Asda Group"), the Company's wholly owned UK retail subsidiary. Under the terms of the combination, the Company would receive approximately 42 percent of the share capital of the combined business. In addition, the Company would receive approximately £3 billion in cash, subject to customary closing adjustments, and retain obligations under the Asda Group defined benefit pension plan. Due to a complex regulatory review process, the outcome of which is uncertain and may take some time to complete, the held for sale classification criteria for the disposal group has not been met as of April 30, 2018. Upon the transaction closing, the Company would deconsolidate the financial statements of the Asda Group and the ongoing investment in the combined company would be accounted for as an equity method investment.
Suburbia
In April 2017, the Company sold Suburbia, the apparel retail division in Mexico, for $1.0 billion.  As part of the sales agreement, the Company is also leasing certain real estate to the purchaser. The sale resulted in a pre-tax gain of $0.7 billion, of which $0.4 billion was recognized in the second quarter of fiscal 2018 in membership and other income, and the remainder was deferred and is being recognized over the lease terms of approximately 20 years.
Subsequent Events
In May 2018, the Company announced it will pay approximately $16 billion in exchange for approximately 77 percent of the outstanding shares of Flipkart Group ("Flipkart"). The investment includes $2 billion of new equity funding. Closing is expected later this calendar year, and is subject to regulatory approval. To finance the acquisition, the Company intends to use a combination of newly issued debt and cash on hand.  Upon regulatory approval and the transaction closing, the Company would consolidate the financial statements of Flipkart with the Company's Condensed Consolidated Financial Statements.
In June 2018, the Company agreed to sell an 80 percent stake of Walmart Brazil to Advent International ("Advent").  Under the terms, the Company would receive up to $250 million in contingent consideration, Advent would contribute additional capital to the business over a three-year period, and Walmart would provide an indemnification for pre-closing tax and legal contingencies, as well as certain other matters.  Due to its decision to sell, the Company will record an estimated net loss of approximately $4.5 billion in the second quarter of fiscal 2019, a significant portion of which is due to the recognition of cumulative foreign currency translation losses.  The transaction is subject to regulatory approval and is expected to close in the second half of fiscal 2019.  Upon closing, the Company would deconsolidate the financial statements of Walmart Brazil and account for its remaining 20 percent ownership interest as an equity method investment.