Divestitures

9 Months Ended

Oct. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Divestitures

During fiscal 2021, the Company announced the following actions related to the Company's Walmart International segment.

Asda

In October 2020, the Company entered into a definitive agreement and announced the proposed divestiture of Asda Group Limited, a wholly-owned subsidiary of the Company ("Asda”), for an enterprise value of £6.8 billion, or approximately $9.1 billion based on current exchange rates. Due to uncertainty of the macro-economic environment and a complex regulatory review process, the outcome of which is uncertain, the held for sale criteria for the disposal group was not met as of October 31, 2020, and accordingly no impacts have been reflected in the Condensed Consolidated Financial Statements.

Walmart Argentina

In November 2020, the Company completed the sale of Walmart Argentina and classified the disposal group as held for sale as of October 31, 2020 in the Condensed Consolidated Balance Sheet. As a result, the Company recorded a pre-tax loss of $1.0 billion during the three and nine months ended October 31, 2020 in other gains and losses in its Condensed Consolidated Statement of Income primarily due to the impact of cumulative translation losses on the carrying value of the disposal group.

Seiyu

In November 2020, the Company entered into a definitive agreement to sell a majority stake in Seiyu, the Company's retail business in Japan, for an enterprise value of ¥172.5 billion, or approximately $1.7 billion based on current exchange rates. As the disposal group met the held for sale criteria subsequent to October 31, 2020, the Company will recognize a non-cash loss of approximately $2.0 billion, after tax, in the fourth quarter of fiscal 2021. This estimate may fluctuate based on currency exchange rates and customary purchase price adjustments up to the closing date of the transaction, which is expected to occur in the first quarter of fiscal 2022 and is subject to regulatory approvals.