Segments and Disaggregated Revenue

Segments

The Company is engaged in the operation of retail, wholesale and other units, as well as eCommerce websites, located throughout the U.S., Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico and the United Kingdom. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services entity-wide.

The Walmart U.S. segment includes the Company's mass merchant concept in the U.S., as well as eCommerce. The Walmart International segment consists of the Company's operations outside of the U.S., as well as eCommerce. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as eCommerce. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments.

The Company measures the results of its segments using, among other measures, each segment's net sales and operating income, which includes certain corporate overhead allocations. From time to time, the Company revises the measurement of each segment's operating income, including any corporate overhead allocations, as determined by the information regularly reviewed by its CODM. In fiscal 2019, the Company revised certain of its corporate overhead allocations to the operating segments and, accordingly, revised prior period amounts for comparability.

Net sales by segment are as follows:



	Three Months Ended July 31,				Six Months Ended July 31,
(Amounts in millions)	2018		2017		2018		2017
Net sales:
Walmart U.S.	$	82,815	$	78,738	$	160,563	$	154,174
Walmart International	29,454		28,331		59,714		55,428
Sam's Club	14,790		14,880		28,412		28,873
Net sales	$	127,059	$	121,949	$	248,689	$	238,475

Operating income by segment, as well as operating loss for corporate and support, interest, net, loss on extinguishment of debt and other gains and losses are as follows:



	Three Months Ended July 31,						Six Months Ended July 31,
(Amounts in millions)	2018			2017			2018			2017
Operating income (loss):
Walmart U.S.	$	4,479		$	4,417		$	8,406		$	8,469
Walmart International	1,269			1,568			2,534			2,707
Sam's Club	402			391			727			790
Corporate and support	(400		)	(407		)	(763		)	(760		)
Operating income	5,750			5,969			10,904			11,206
Interest, net	503			575			990			1,138
Loss on extinguishment of debt	—			788			—			788
Other (gains) and losses	4,849			—			6,694			—
Income before income taxes	$	398		$	4,606		$	3,220		$	9,280

Disaggregated Revenues

In the following tables, segment net sales are disaggregated by either merchandise category or market. In addition, net sales related to eCommerce are provided for each segment, which include omni-channel sales, where a customer initiates an order online and the order is fulfilled through a store or club.



(Amounts in millions)	Three Months Ended July 31, 2018		Six Months Ended July 31, 2018
Walmart U.S. net sales by merchandise category	Three Months Ended July 31, 2018		Six Months Ended July 31, 2018
Grocery	$	45,991	$	89,851
General merchandise	27,305		51,479
Health and wellness	8,837		17,965
Other categories	682		1,268
Total	$	82,815	$	160,563

Of Walmart U.S.'s total net sales, approximately $3.5 billion and $6.6 billion related to eCommerce for the three and six months ended July 31, 2018, respectively.



(Amounts in millions)	Three Months Ended July 31, 2018		Six Months Ended July 31, 2018
Walmart International net sales by market	Three Months Ended July 31, 2018		Six Months Ended July 31, 2018
Mexico and Central America	$	7,510	$	15,194
United Kingdom	7,650		15,165
Canada	4,703		8,957
China	2,480		5,685
Other	7,111		14,713
Total	$	29,454	$	59,714

Of International's total net sales, approximately $1.0 billion and $1.9 billion related to eCommerce for the three and six months ended July 31, 2018, respectively.



(Amounts in millions)	Three Months Ended July 31, 2018		Six Months Ended July 31, 2018
Sam’s Club net sales by merchandise category	Three Months Ended July 31, 2018		Six Months Ended July 31, 2018
Grocery and consumables	$	8,585	$	16,597
Fuel, tobacco and other categories	3,261		6,180
Home and apparel	1,398		2,600
Health and wellness	789		1,590
Technology, office and entertainment	757		1,445
Total	$	14,790	$	28,412

Of Sam's Club's total net sales, approximately $0.7 billion and $1.2 billion related to eCommerce for the three and six months ended July 31, 2018, respectively.