Segments and Disaggregated Revenue (Notes)

6 Months Ended

Jul. 31, 2020

Segment Reporting Information, Profit (Loss) [Abstract]

Segments and Disaggregated Revenue

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, 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.

The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce and omni-channel initiatives. The Walmart International segment consists of the Company's operations outside of the U.S., as well as eCommerce and omni-channel initiatives. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives. 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. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation. Beginning with the first quarter in fiscal 2021, the Company revised its definition of eCommerce net sales to include certain pharmacy transactions and, accordingly, revised prior period amounts to maintain comparability.

Net sales by segment are as follows:

	Three Months Ended July 31,				Six Months Ended July 31,
(Amounts in millions)	2020		2019		2020		2019
Net sales:
Walmart U.S.	$	93,282	$	85,200	$	182,025	$	165,544
Walmart International	27,167		29,139		56,933		57,914
Sam's Club	16,375		15,049		31,538		28,879
Net sales	$	136,824	$	129,388	$	270,496	$	252,337

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

	Three Months Ended July 31,						Six Months Ended July 31,
(Amounts in millions)	2020			2019			2020			2019
Operating income (loss):
Walmart U.S.	$	5,057		$	4,659		$	9,359		$	8,801
Walmart International	812			893			1,618			1,631
Sam's Club	592			480			1,086			931
Corporate and support	(402		)	(449		)	(780		)	(835		)
Operating income	6,059			5,583			11,283			10,528
Interest, net	635			585			1,184			1,210
Other (gains) and losses	(3,222		)	85			(3,943		)	(752		)
Income before income taxes	$	8,646		$	4,913		$	14,042		$	10,070

Disaggregated Revenues

In the following tables, segment net sales are disaggregated by either merchandise category or by market. From time to time, the Company revises the assignment of net sales of a particular item to a merchandise category. When the assignment changes, previous period amounts are reclassified to be comparable to the current period's presentation.

In addition, net sales related to eCommerce are provided for each segment, which include omni-channel sales, where a customer initiates an order digitally and the order is fulfilled through a store or club.

(Amounts in millions)	Three Months Ended July 31,				Six Months Ended July 31,
Walmart U.S. net sales by merchandise category	2020		2019		2020		2019
Grocery	$	51,545	$	48,196	$	104,466	$	94,395
General merchandise	31,682		27,246		57,148		51,637
Health and wellness	9,154		8,949		18,754		17,888
Other categories	901		809		1,657		1,624
Total	$	93,282	$	85,200	$	182,025	$	165,544

Of Walmart U.S.'s total net sales, approximately $10.5 billion and $5.4 billion related to eCommerce for the three months ended July 31, 2020 and 2019, respectively. Approximately $18.8 billion and $10.1 billion related to eCommerce for the six months ended July 31, 2020 and 2019, respectively.

(Amounts in millions)	Three Months Ended July 31,				Six Months Ended July 31,
Walmart International net sales by market	2020		2019		2020		2019
Mexico and Central America	$	7,208	$	8,014	$	15,704	$	15,852
United Kingdom	6,698		7,316		13,830		14,393
Canada	5,127		4,635		9,413		8,758
China	2,579		2,428		5,947		5,491
Other	5,555		6,746		12,039		13,420
Total	$	27,167	$	29,139	$	56,933	$	57,914

Of Walmart International's total net sales, approximately $3.3 billion and $2.6 billion related to eCommerce for the three months ended July 31, 2020 and 2019, respectively. Approximately $6.2 billion and $5.1 billion related to eCommerce for the six months ended July 31, 2020 and 2019, respectively.

(Amounts in millions)	Three Months Ended July 31,				Six Months Ended July 31,
Sam’s Club net sales by merchandise category	2020		2019		2020		2019
Grocery and consumables	$	10,715	$	8,931	$	21,076	$	17,251
Fuel, tobacco and other categories	2,068		2,863		4,081		5,481
Home and apparel	1,953		1,763		3,233		3,193
Health and wellness	931		842		1,832		1,669
Technology, office and entertainment	708		650		1,316		1,285
Total	$	16,375	$	15,049	$	31,538	$	28,879

Of Sam's Club's total net sales, approximately $1.3 billion and $1.0 billion related to eCommerce for the three months ended July 31, 2020 and 2019, respectively. Approximately $2.3 billion and $1.7 billion related to eCommerce for the six months ended July 31, 2020 and 2019, respectively.