Walmart Inc 2023 Annual Report

Annual Report

Read the full repor and Doug’s letter here:

Doug McMillon

President and Chief Executive Officer

Walmar Inc.

“We started this new year with momentum across the business through

strength in our omnichannel model and by living our purpose every day.

Our customers and members expect to shop with us when and how they

choose, and that’s what we do for them. We’re thankful to our associates

that create a seamless experience that’s uniquely Walmart.”

A message from our CEO

NITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________

FORM

10-K

___________________________________________

☒

Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended January 31, 2023, or

☐

Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

Commission file number 001-06991.

___________________________________________

ALMART INC.

xact name of registrant as specified in its charter)

___________________________________________

DE 71-0415188

(State or other jurisdiction of

incorporation or organization)

(IRS Employer Identification No.)

702 S.W. 8th Street

72716Bentonville, AR

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (479) 273-4000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock, par value $0.10 per share WMT NYSE

2.550% Notes Due 2026 WMT26 NYSE

curities registered pursuant to Section 12(g) of the Act: None

___________________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ý No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the

Exchange Act.

Yes ¨ No ý

ndi

cate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.

Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period

that the registrant was required to submit such files).

Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"

"smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period

for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the

effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.

7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the

registrant included in the filing reflect the correction of an error to previously issued financial statements. ¨

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-

based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to

§240.10D-1(b). ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of July 31, 2022, the aggregate market value of the voting common stock of the registrant held by non-affiliates of the

registrant, based on the closing sale price of those shares on the New York Stock Exchange reported on July 29, 2022, was

$186,168,142,989. For the purposes of this disclosure only, the registrant has assumed that its directors, executive officers (as

defined in Rule 3b-7 under the Exchange Act) and the beneficial owners of 5% or more of the registrant's outstanding common

stock are the affiliates of the registrant.

The registrant had 2,695,655,933 shares of common stock outstanding as of March 15, 2023.

DOCUMENTS INCORPORATED BY REFERENCE

Document Parts Into Which Incorporated

Portions of the registrant's Proxy Statement for the Annual

Meeting of Shareholders to be held May 31, 2023 (the "Proxy

Statement")

Part III

mart Inc.

Form 10-K

For the Fiscal Year Ended January 31, 2023

Table of Contents

Page

Part I

tem 1

usiness

tem 1A

isk Factors

tem 1B

nresolved Staff Comments

tem 2

roperties

tem 3

egal Proceedings

tem 4

ine Safety Disclosures

art II

tem 5

arket for Registrant's Common Equity, Related Stockholder Matte

rs and Issuer Purchases of Equity Securities

tem 6

eserved

tem 7

anagement's Discussion and Analysis of Financial Condition and

Results of Operations

tem 7A

uantitative and Qualitative Disclosures About Market Risk

tem 8

inancial Statements and Supplementary Data

tem 9

hanges in and Disagreements with Accountants on Accounting and

Financial Disclosure

tem 9A

ontrols and Procedures

tem 9B

ther Information

tem 9C

isclosure Regarding Foreign Jurisdictions that Prevent Inspecti

ons

art III

tem 10

irectors, Executive Officers and Corporate Governance

tem 11

xecutive Compensation

tem 12

ecurity Ownership of Certain Beneficial Owners and Management a

nd Related Stockholder Matters

tem 13

ertain Relationships and Related Transactions, and Director Ind

ependence

tem 14

rincipal Accounting Fees and Services

art IV

tem 15

xhibits, Financial Statement Schedules

tem 16

orm 10-K Summary

ignatures

MART INC.

ANNUAL REPORT ON FORM 10-K

FOR THE FISCAL YEAR ENDED JANUARY 31, 2023

All references in this Annual Report on Form 10-K, the information incorporated into this Annual Report on Form 10-K by

reference to information in the Proxy Statement of Walmart Inc. for its Annual Shareholders' Meeting to be held on May 31,

2023 and in the exhibits to this Annual Report on Form 10-K to "Walmart Inc.," "Walmart," "the Company," "our Company,"

"we," "us" and "our" are to the Delaware corporation named "Walmart Inc." and, except where expressly noted otherwise or the

context otherwise requires, that corporation's consolidated subsidiaries.

PART I

auti

onary Statement Regarding Forward-Looking Statements

This Annual Report on Form 10-K and other reports, statements, and information that Walmart Inc. (which individually or

together with its subsidiaries, as the context otherwise requires, is referred to as "we," "Walmart" or the "Company") has filed

with or furnished to the Securities and Exchange Commission ("SEC") or may file with or furnish to the SEC in the future, and

prior or future public announcements and presentations that we or our management have made or may make, include or may

include, or incorporate or may incorporate by reference, statements that may be deemed to be "forward-looking statements"

within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), that are intended to enjoy

the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other

federal securities laws.

Nature of

Forwa

rd-Looking

atements

h forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our

consolidated, or one of our segment's, economic performance or results of operations for future periods or as of future dates or

events or developments that may occur in the future or discuss our plans, objectives or goals. These forward-looking

statements may relate to:

• macroeconomic, geopolitical, and business conditions, trends and events around the world and in the markets in which

we operate, including inflation or deflation, generally and in certain product categories, the impact of supply chain

challenges, and recessionary pressures;

• the growth of our business or change in our competitive position in the future or in or over particular periods, both

generally and with respect to particular markets, segments or lines of business, including, but not limited to,

advertising, fulfillment, healthcare, and financial services;

• the amount, number, growth, increase, reduction or decrease in or over certain periods, of or in certain financial items

or measures or operating measures, including our earnings per share, net sales, comparable store and club sales, our

eCommerce sales, liabilities, expenses of certain categories, expense leverage, operating income, returns, capital and

operating investments or expenditures of particular types and new store and club openings, inventory levels and

associated costs, product mix and demand for certain merchandise, consumer confidence, disposable income, credit

availability, spending levels, shopping patterns and debt levels;

• our increasing investments in eCommerce, technology, automation, supply chain, new stores and clubs as well as

remodels and other omni-channel customer initiatives, such as same day pickup and delivery;

• investments and capital expenditures we will make and how certain of those investments and capital expenditures are

expected to be financed;

• our workforce strategy, including the availability of necessary personnel to staff our stores, clubs and other facilities

and the potential impact of changes to the costs of labor;

• volatility in currency exchange rates affecting our consolidated, or one or more of our segments' results of operations;

• the Company continuing to provide returns to shareholders through share repurchases and dividends, the use of share

repurchase authorization over a certain period or the source of funding of a certain portion of our share repurchases;

• our sources of liquidity, including our cash, continuing to be adequate or sufficient to fund our operations, finance our

global investment and expansion activities, pay dividends and fund share repurchases;

• cash flows from operations, our current cash position and access to capital markets or credit will continue to be

sufficient to meet our anticipated operating cash needs;

• the reclassification of amounts related to our derivatives;

• our effective tax rate for certain periods and the realization of certain net deferred tax assets and the effects of

resolutions of tax-related matters;

• the adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions

in the markets in which we operate and elsewhere and actions with respect to such policies, programs and initiatives

(including, but not limited to, changes in the enforcement priorities of regulatory authorities);

• t

effect of adverse decisions in, or settlement of, litigation or other proceedings or investigations to which we are

subject;

• the effect on the Company's results of operations or financial position of the Company's adoption of certain new, or

amendments to existing, accounting standards; or

• our commitments, intentions, plans or goals related to environmental, social, and governance ("ESG") priorities,

including, but not limited to, the sustainability of our environment and supply chains, the promotion of economic

opportunity or other societal initiatives.

Our forward-looking statements may also include statements of our strategies, plans and objectives for our operations, including

areas of future focus in our operations, and the assumptions underlying any of the forward-looking statements we make. The

forward-looking statements we make can typically be identified by the use therein of words and phrases such as "aim,"

"anticipate," "believe," "could be," "could increase," "could occur," "could result," "continue," "estimate," "expansion,"

"expect," "expectation," "expected to be," "focus," "forecast," "goal," "grow," "guidance," "intend," "invest," "is expected,"

"may continue," "may fluctuate," "may grow," "may impact," "may result," "objective," "plan," "priority," "project," "strategy,"

"to be," "we'll," "we will," "will add," "will allow," "will be," "will benefit," "will change," "will come in at," "will continue,"

"will decrease," "will grow," "will have," "will impact," "will include," "will increase," "will open," "will remain," "will result,"

"will stay," "will strengthen," "would be," "would decrease" and "would increase," variations of such words or phrases, other

phrases commencing with the word "will" or similar words and phrases denoting anticipated or expected occurrences or results.

The forward-looking statements that we make or that are made by others on our behalf are based on our knowledge of our

business and our operating environment and assumptions that we believe to be or will believe to be reasonable when such

forward-looking statements were or are made. As a consequence of the factors described above, the other risks, uncertainties

and factors we disclose below and in the other reports as mentioned above, other risks not known to us at this time, changes in

facts, assumptions not being realized or other circumstances, our actual results may differ materially from those discussed in or

implied or contemplated by our forward-looking statements. Consequently, this cautionary statement qualifies all forward-

looking statements we make or that are made on our behalf, including those made herein and incorporated by reference herein.

We cannot assure you that the results or developments expected or anticipated by us will be realized or, even if substantially

realized, that those results or developments will result in the expected consequences for us or affect us, our business, our

operations or our operating results in the manner or to the extent we expect. We caution readers not to place undue reliance on

such forward-looking statements, which speak only as of their dates. We undertake no obligation to revise or update any of the

forward-looking statements to reflect subsequent events or circumstances except to the extent required by applicable law.

EM 1.

USINE

neral

Walmart Inc. ("Walmart," the "Company" or "we") is a people-led, technology-powered omni-channel retailer dedicated to help

people around the world save money and live better – anytime and anywhere – by providing the opportunity to shop in both

retail stores and through eCommerce, and to access our other service offerings. Through innovation, we strive to continuously

improve a customer-centric experience that seamlessly integrates our eCommerce and retail stores in an omni-channel offering

that saves time for our customers. Each week, we serve approximately 240 million customers who visit more than 10,500

stores and numerous eCommerce websites in 20 countries.

Our strategy is to make every day easier for busy families, operate with discipline, sharpen our culture and become more digital,

and make trust a competitive advantage. Making life easier for busy families includes our commitment to price leadership,

which has been and will remain a cornerstone of our business, as well as increasing convenience to save our customers time.

By leading on price, we earn the trust of our customers every day by providing a broad assortment of quality merchandise and

services at everyday low prices ("EDLP"). EDLP is our pricing philosophy under which we price items at a low price every

day so our customers trust that our prices will not change under frequent promotional activity. Everyday low cost ("EDLC") is

our commitment to control expenses so our cost savings can be passed along to our customers.

Our operations comprise three reportable segments: Walmart U.S., Walmart International and Sam's Club. Our fiscal year ends

on January 31 for our United States ("U.S.") and Canadian operations. We consolidate all other operations generally using a

one-month lag and on a calendar year basis. Our discussion is as of and for the fiscal years ended January 31, 2023 ("fiscal

2023"), January 31, 2022 ("fiscal 2022") and January 31, 2021 ("fiscal 2021"). During fiscal 2023, we generated total revenues

of $611.3 billion, which was comprised primarily of net sales of $605.9 billion.

We maintain our principal offices in Bentonville, Arkansas. Our common stock trades on the New York Stock Exchange under

the symbol "WMT."

The Development of Our Company

The businesses conducted by our founders began in 1945 when Sam M. Walton opened a franchise Ben Franklin variety store

in Newport, Arkansas. In 1946, his brother, James L. Walton, opened a similar store in Versailles, Missouri. Until 1962, our

founders' business was devoted entirely to the operation of variety stores. In 1983, we opened our first Sam's Club, and in 1988,

we opened our first supercenter. In 1998, we opened our first Walmart Neighborhood Market. In 1991, we began our first

international initiative when we entered into a joint venture in Mexico and, as of January 31, 2023, our Walmart International

segment conducted business in 19 countries.

In 2000, we began our first eCommerce initiative by creating both walmart.com and samsclub.com. Since then, our

eCommerce presence has continued to grow. In 2007, leveraging our physical stores, walmart.com launched its Site to Store

service, enabling customers to make a purchase online and pick up merchandise in stores. To date, we now have over 8,100

pickup and approximately 7,000 delivery locations globally. In recent years, we have heavily invested in omni-channel and

eCommerce innovation, which has enabled us to leverage technology, talent and expertise, incubate digitally-native brands, and

expand our assortment and service offerings. We have also continued to enhance our eCommerce initiatives, such as with our

acquisition of a majority stake in Flipkart Private Limited ("Flipkart"), which is our ecosystem in India that includes

eCommerce platforms of Flipkart and Myntra, as well as with our majority stake in PhonePe Private Limited ("PhonePe"), a

digital transaction platform.

We are enhancing our ecosystem with our omni-channel capabilities, stores, service offerings, eCommerce websites and

marketplaces as well as our supply chain combined with approximately 2.1 million associates as of January 31, 2023 to better

serve our customers. Together, we believe these elements produce a flywheel effect which creates relationships where

customers view Walmart as their primary destination. In the U.S., our Walmart+ membership incorporates several service

offerings which provide enhanced omni-channel shopping experiences and benefits for members. As we execute on our

strategy globally, our flywheel is accelerating through offerings such as our Walmart Connect advertising business, Walmart

Fulfillment Services, providing access to quality, affordable healthcare via Walmart Health and Flipkart Health+, and our

financial services businesses. These offerings represent mutually reinforcing pieces of our flywheel centered around our

customers around the world who are increasingly seeking convenience.

nfor

mation About Our Segments

We are engaged in global operations of retail, wholesale and other units, as well as eCommerce, located throughout the U.S.,

Africa, Canada, Central America, Chile, China, India and Mexico. We also previously operated in Argentina prior to the sale of

Walmart Argentina in fiscal 2021 and operated in the United Kingdom and Japan prior to the sale of those operations in the first

quarter of fiscal 2022. Refer to Note 12

o our Consolidated Financial Statements for information on these divestitures. Our

operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club, which are further

described below. Each segment contributes to the Company's operating results differently. However, each has generally

maintained a consistent contribution rate to the Company's net sales in recent years other than minor changes to the contribution

rate for the Walmart International segment due to the exit of certain markets and fluctuations in currency exchange rates.

Additional information on our operating segments and geographic information is contained in Note 13

o our Consolidated

Financial Statements.

Walmart U.S. Segment

Walmart U.S. is our largest segment and operates in the U.S., including in all 50 states, Washington D.C. and Puerto Rico.

Walmart U.S. is a mass merchandiser of consumer products, operating under the "Walmart" and "Walmart Neighborhood

Market" brands, as well as walmart.com and other eCommerce brands. Walmart U.S. had net sales of $420.6 billion for fiscal

2023, representing 69% of our fiscal 2023 consolidated net sales, and had net sales of $393.2 billion and $370.0 billion for

fiscal 2022 and 2021, respectively. Of our three segments, Walmart U.S. has historically had the highest gross profit as a

percentage of net sales ("gross profit rate"). In addition, Walmart U.S. has historically contributed the greatest amount to the

Company's net sales and operating income.

Omni-channel.

almart U.S. provides an omni-channel experience to customers, integrating retail stores and eCommerce,

through services such as pickup and delivery, in-home delivery, ship-from-store, and digital pharmacy fulfillment options. As

of January 31, 2023, we had more tha

n 4

,600

ckup locations and more than

,900

me-day delivery locations. Our

Walmart+ membership offering provides enhanced omni-channel shopping benefits including unlimited free shipping on

eligible items with no order minimum, unlimited delivery from store, fuel discounts, access to Paramount+ streaming service,

and mobile scan & go for a streamlined in-store shopping experience. We have several eCommerce websites, the largest of

which is walmart.com. We define eCommerce sales as sales initiated by customers digitally and fulfilled by a number of

methods including our dedicated eCommerce fulfillment centers and leveraging our stores, as well as certain other business

offerings that are part of our flywheel strategy, such as our Walmart Connect advertising business. The following table

provides the approximate size of our retail stores as of January 31, 2023:

imum

Square Feet

Maximum

Square Feet

Average

Square Feet

Supercenters (general merchandise and grocery) 69,000 260,000 178,000

Discount stores (general merchandise and limited grocery) 30,000 206,000 105,000

Neighborhood markets

(1)

(grocery) 28,000 65,000 42,000

(

Excludes other small formats.

Merchandise

. W

lmart U.S. does business primarily in three strategic merchandise units, listed below:

• Grocery consists of a full line of grocery items, including dry grocery, snacks, dairy, meat, produce, deli & bakery,

frozen foods, alcoholic and nonalcoholic beverages, as well as consumables such as health and beauty aids, pet

supplies, household chemicals, paper goods and baby products;

• General merchandise includes:

◦ Entertainment (e.g., electronics, toys, seasonal merchandise, wireless, video games, movies, music and

books);

◦ Hardlines (e.g., automotive, hardware and paint, sporting goods, outdoor living and stationery);

◦ Apparel (e.g., apparel for men, women, girls, boys and infants, as well as shoes, jewelry and accessories); and

◦ Home (e.g., housewares and small appliances, bed & bath, furniture and home organization, home

furnishings, home decor, fabrics and crafts).

• Health and wellness includes pharmacy, over-the-counter drugs and other medical products, optical services and other

clinical services.

Other categories in the Walmart U.S. business include an in-house advertising offering via Walmart Connect, supply chain and

fulfillment capabilities to online marketplace sellers via Walmart Fulfillment Services, and newer initiatives such as B2B last

mile delivery services via Walmart GoLocal, and a suite of data products for merchants and suppliers via Walmart Luminate.

Additional service offerings include fuel, financial services and related products (including through our digital channels, stores

and our fintech venture, ONE), such as money orders, prepaid access, money transfers, check cashing, bill payment, and certain

types of installment lending.

nd name merchandise represents a significant portion of the merchandise sold in Walmart U.S. We also market lines of

merchandise under our private brands, including brands such as: "Allswell," "Athletic Works," "Eloquii Elements," "Equate,"

"Free Assembly," "Freshness Guaranteed," "George," "Great Value," "Holiday Time," "Hyper Tough," "Mainstays,"

"Marketside," "No Boundaries," "onn.," "Ozark Trail," "Parent's Choice," "Sam's Choice," "Scoop," "Spring Valley," "Time

and Tru," "Way to Celebrate" and "Wonder Nation." The Company also markets lines of merchandise under licensed brands,

some of which include: "Avia," "Love & Sports," "Better Homes & Gardens," "Pioneer Woman" and "Sofia Jeans by Sofia

Vergara."

Periodically, revisions are made to the categorization of the components comprising our strategic merchandise units. When

revisions are made, the previous periods' presentation is adjusted to maintain comparability.

Operations.

almart U.S. is available to customers through supercenters, discount stores and neighborhood markets, as well

as online or through the mobile application 24 hours a day. Consistent with its strategy, Walmart U.S. continues to develop

technology tools and services to better serve customers and help stores operate more efficiently, such as pickup and delivery,

Walmart+, ship-from-store and other initiatives which provide convenient and seamless omni-channel shopping experiences.

Seasonal Aspects of Operations.

almart U.S.'s business is seasonal to a certain extent due to calendar events and national

and religious holidays, as well as different weather patterns. Historically, its highest sales volume has occurred in the fiscal

quarter ending January 31.

Competition.

almart U.S. competes with brick and mortar, eCommerce, and omni-channel retailers operating discount,

department, retail and wholesale grocers, drug, dollar, variety and specialty stores, supermarkets, hypermarkets and

supercenter-type stores, social commerce platforms, as well as companies that offer services in digital advertising, fulfillment

and delivery services, health and wellness, and financial services. Each of these landscapes is highly competitive and rapidly

evolving, and new business models and the entry of new, well-funded competitors continue to intensify this competition. Some

of our competitors have longer histories in these lines of business, more customers, and greater brand recognition. They may be

able to obtain more favorable terms from suppliers and business partners and to devote greater resources to the development of

these businesses. In addition, for eCommerce and other internet-based businesses, newer or smaller businesses may be better

able to innovate and compete with us.

Our ability to develop and operate units at the right locations and to deliver a customer-centric omni-channel experience largely

determines our competitive position within the retail industry. We compete in a variety of ways, including the prices at which

we sell our merchandise, merchandise and selection availability, services offered to customers, location, store hours, in-store

amenities, the shopping convenience and overall shopping experience we offer, the attractiveness and ease of use of our digital

platforms, cost and speed of and options for delivery to customers of merchandise purchased through our digital platforms or

through our omni-channel integration of our physical and digital operations. We employ many strategies and programs

designed to meet competitive pressures within our industry. These strategies include the following:

• EDLP: our pricing philosophy under which we price items at everyday low prices so our customers trust that our

prices will not change under frequent promotional activity;

• EDLC: everyday low cost is our commitment to control expenses so our cost savings can be passed along to our

customers;

• Omni-channel offerings such as pickup and delivery and our Walmart+ membership offering, all of which enhance

convenience and seek to serve customers in the ways they want to be served; and

• Expanding our flywheel and the products and services we offer in areas such as digital advertising, fulfillment

services, health and wellness, and financial services to provide our customers a broader set of offerings to meet

expanding needs.

Distribution

. W

continue to invest in supply chain automation and utilize a total of 163 distribution facilities which are

located strategically throughout the U.S. For fiscal 2023, the majority of Walmart U.S.'s purchases of store merchandise were

shipped through these facilities, while most of the remaining store merchandise we purchased was shipped directly from

suppliers. General merchandise and dry grocery merchandise is transported primarily through the segment's private truck fleet;

however, we contract with common carriers to transport the majority of our perishable grocery merchandise. We ship

merchandise purchased by customers on our eCommerce platforms by a number of methods from multiple locations including

from our 34 dedicated eCommerce fulfillment centers, as well as leveraging our ability to ship or deliver directly from more

tha

n 3,900 st

ores.

mart International Segment

Walmart International is our second largest segment and operated in 19 countries outside of the U.S. as of January 31, 2023.

Walmart International operates through our wholly-owned subsidiaries in Canada, Chile, China, and Africa (which includes

Botswana, Kenya, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, and Zambia), and our majority-owned

subsidiaries in India, as well as Mexico and Central America (which includes Costa Rica, El Salvador, Guatemala, Honduras

and Nicaragua). Walmart International previously operated in Argentina prior to the sale of Walmart Argentina in fiscal 2021

and operated in the United Kingdom and Japan prior to the sale of those operations in the first quarter of fiscal 2022. Refer to

Note 12

o our Consolidated Financial Statements for discussion of recent divestitures.

Walmart International includes numerous formats divided into two major categories: retail and wholesale. These categories

consist of many formats, including: supercenters, supermarkets, hypermarkets, warehouse clubs (including Sam's Clubs) and

cash & carry, as well as eCommerce through walmart.com.mx, walmart.ca, flipkart.com, walmart.cn and other sites. Walmart

International had net sales of $101.0 billion for fiscal 2023, representing 17% of our fiscal 2023 consolidated net sales, and had

net sales of $101.0 billion and $121.4 billion for fiscal 2022 and 2021, respectively. The gross profit rate is lower than that of

Walmart U.S. primarily because of its format mix.

Walmart International's strategy is to create strong local businesses powered by Walmart which means being locally relevant

and customer-focused in each of the markets it operates. We are being deliberate about where and how we choose to operate

and continue to re-shape the portfolio to best enable long-term, sustainable and profitable growth. As such, we have taken

certain strategic actions to strengthen our Walmart International portfolio for the long-term, which include the following

highlights over the last three years:

• Divested of Walmart Argentina in November 2020.

• Divested of Asda Group Limited ("Asda"), our retail operations in the U.K., in February 2021.

• Divested of a majority stake in Seiyu, our retail operations in Japan, in March 2021.

• Bought out the noncontrolling interest shareholders of our Massmart subsidiary in November 2022 and exited

operations in certain countries in Africa in December 2022.

• Increased our ownership in PhonePe, our digital transaction platform in India, as part of the separation from Flipkart in

December 2022.

Omni-channel.

almart International provides an omni-channel experience to customers, integrating retail stores and

eCommerce, such as through pickup and delivery services in most of our markets and our marketplaces such as Flipkart in

India. Our financial services offerings continue to expand with our digital transaction platform anchored in payments at

PhonePe in India. We have expanded our marketplace in Mexico and Canada, which unlocks fulfillment and advertising

services, and in China, our partnerships with JD.com and JD Daojia continue to drive ecommerce growth.

Generally, retail units' selling areas range in size from 1,400 square feet to 186,000 square feet. Our wholesale stores' selling

areas generally range in size from 24,000 square feet to 158,000 square feet. As of January 31, 2023, Walmart International

had over 2,900 pickup and approximately 2,500 delivery locations.

Merchandise.

he merchandising strategy for Walmart International is similar to that of our operations in the U.S. in terms of

the breadth and scope of merchandise offered for sale. While brand name merchandise accounts for a majority of our sales, we

have both leveraged U.S. private brands and developed market specific private brands to serve our customers with high quality,

low priced items. Along with the private brands we market globally, such as "Equate," "George," "Great Value," "Holiday

Time," "Mainstays," "Marketside" and "Parent's Choice," our international markets have developed market specific brands

including "Aurrera," "Lider," and "PhonePe." In addition, we have developed and continue to grow our relationships with

regional and local suppliers in each market to ensure reliable sources of quality merchandise that is equal to national brands at

low prices.

Consistent with its strategy, Walmart International continues to build mutually reinforcing businesses in areas such as

advertising, marketplace and fulfillment services, healthcare and financial services. Our businesses in Mexico and Canada, for

example, offer prepaid cards and money transfers, and our PhonePe business in India continues to grow, providing a platform

that offers mobile and bill payment, person-to-person (P2P) payment, investment and insurance solutions, financial services and

advertising. In Mexico, we also offer a value-based internet and telephone service allowing customers to enjoy digital

connectivity, and in India we launched Flipkart Health+ enabling us to increase access to affordable care in that country.

Combined, these offerings did not represent a significant portion of annual segment revenues.

Operations.

he hours of operation for operating units in Walmart International vary by country and by individual markets

within countries, depending upon local and national ordinances governing hours of operation. Consistent with its strategy,

Walmart International continues to develop technology tools and services to better serve customers and help its various formats

operate more efficiently, as well as to provide convenient and seamless omni-channel shopping experiences.

asonal Aspects of Operations.

almart International's business is seasonal to a certain extent. Historically, its highest sales

volume has occurred in the fourth quarter of our fiscal year. The seasonality of the business varies by country due to different

national and religious holidays, festivals and customs, as well as different weather patterns.

Competition

almart International competes with brick and mortar, eCommerce, and omni-channel retailers who operate

department, drug, discount, variety and specialty stores, supermarkets, hypermarkets and supercenter-type stores, wholesale

clubs, home-improvement stores, specialty electronics stores, cash & carry operations and convenience stores, and eCommerce

retailers, as well as companies that offer services in digital advertising, fulfillment services, health and wellness, and financial

services. Our ability to develop and operate units at the right locations and to deliver a customer-centric omni-channel

experience largely determines our competitive position within the retail industry. We believe price leadership is a critical part

of our business model and we continue to focus on moving our markets towards an EDLP approach. Additionally, our ability

to operate food departments effectively has a significant impact on our competitive position in the markets where we operate.

Each of these landscapes is highly competitive and rapidly evolving, and new business models and the entry of new, well-

funded competitors continue to intensify this competition. Some of our competitors have longer histories in these lines of

business, more customers, and greater brand recognition. They may be able to obtain more favorable terms from suppliers and

business partners and to devote greater resources to the development of these businesses. In addition, for eCommerce and other

internet-based businesses, newer or smaller businesses may be better able to innovate and compete with us.

Distribution.

e utilize a total of 188 distribution facilities located in Canada, Central America, Chile, China, India, Mexico

and South Africa. Through these facilities, we process and distribute both imported and domestic products to the operating

units of the Walmart International segment. During fiscal 2023, the majority of Walmart International's purchases passed

through these distribution facilities. Suppliers ship the remainder of Walmart International's purchases directly to our stores in

the various markets in which we operate. Across the segment, we have efficient networks connecting physical stores and

distribution and fulfillment centers which facilitate the movement of goods to where our customers live. We ship merchandise

purchased by customers on our eCommerce platforms by a number of methods from multiple locations including from our 100

dedicated eCommerce fulfillment centers, more than 3,600 eCommerce sort centers and last-mile delivery facilities in India, as

well as our physical retail stores.

Sam's Club Segment

Sam's Club operates in 44 states in the U.S. and in Puerto Rico. Sam's Club is a membership-only warehouse club that also

operates samsclub.com. Sam's Club had net sales of $84.3 billion for fiscal 2023, representing 14% of our consolidated fiscal

2023 net sales, and had net sales of $73.6 billion and $63.9 billion for fiscal 2022 and 2021, respectively. As a membership-

only warehouse club, membership income is a significant component of the segment's operating income. Sam's Club operates

with a lower gross profit rate and lower operating expenses as a percentage of net sales than our other segments.

Membership.

he following two options are available to members:

s Membership Club Membership

Annual Membership Fee $110 $50

Number of Add-on Memberships ($45 each) Up to 16 Up to 8

l memberships include a spouse/household card at no additional cost. Plus Members are also eligible for free shipping on the

majority of merchandise, with no minimum order size, and receive discounts on prescriptions and glasses. Beginning in fiscal

2023, Sam's Club launched a single loyalty rewards currency called Sam's Cash which merges and replaces existing Cash

Rewards for Plus members and Cash Back for Sam's Club Mastercard holders. Members may redeem Sam's Cash on purchases

in the club and online, to pay for membership fees or for cash in clubs. Sam's Cash does not expire and is available for monthly

redemption.

Omni-channel.

m's Club provides an omni-channel experience to members, integrating warehouse clubs and eCommerce

through such services as Curbside Pickup, mobile Scan & Go, ship-from-club, and delivery-from-club. Members have access

to a broad assortment of merchandise and services, including those not found in our clubs, online at samsclub.com and through

our mobile commerce applications. The warehouse facility sizes generally range between 32,000 and 168,000 square feet, with

an average size of approximately 134,000 square feet.

Merchandise.

m's Club offers merchandise in the following five merchandise categories:

• Grocery and consumables includes dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic

and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods,

laundry and home care, baby care, pet supplies and other consumable items;

• Fuel, tobacco and other categories;

• H

e and apparel includes home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power

equipment, housewares, toys, seasonal items, mattresses, and tire and battery centers;

• Health and wellness includes pharmacy, optical and hearing services and over-the-counter drugs; and

• Technology, office and entertainment includes consumer electronics and accessories, software, video games, office

supplies, appliances, and third-party gift cards.

Within the categories above, the Member's Mark private label brand continues to expand its assortment and deliver member

value.

Operations.

m's Club is available to members through warehouse club locations, as well as online or through the mobile

application 24 hours a day. Club locations offer Plus Members the ability to shop before regular operating hours. Consistent

with its strategy, Sam's Club continues to develop technology tools to drive a great member experience. Curbside Pickup is

available at all clubs to help provide fast, easy and contact-free shopping for members. Sam's Club also offers "Scan & Go," a

mobile checkout and payment solution, which allows members to bypass the checkout line.

Seasonal Aspects of Operations.

m's Club's business is seasonal to a certain extent due to calendar events and national and

religious holidays, as well as different weather patterns. Historically, its highest sales volume has occurred in the fiscal quarter

ending January 31.

Competition.

m's Club competes with other membership-only warehouse clubs, the largest of which is Costco, as well as

with discount retailers, retail and wholesale grocers, general merchandise wholesalers and distributors, gasoline stations as well

as omni-channel and eCommerce retailers and catalog businesses. At Sam's Club, we provide value at members-only prices, a

quality merchandise assortment, and bulk sizing to serve both our Plus and Club members. Our eCommerce website and

mobile commerce applications have increasingly become important factors in our ability to compete.

Distribution.

e utilize 29 dedicated distribution facilities located strategically throughout the U.S., as well as some of the

Walmart U.S. segment's distribution facilities which service the Sam's Club segment for certain items. During fiscal 2023, the

majority of Sam's Club's non-fuel club purchases were shipped from these facilities, while the remainder of our purchases were

shipped directly to Sam's Club locations by suppliers. Sam's Club ships merchandise purchased on samsclub.com and through

its mobile commerce applications by a number of methods including shipments made directly from clubs, 13 dedicated

eCommerce fulfillment centers and other distribution centers.

Sam's Club uses a combination of our private truck fleet, as well as common carriers, to transport perishable and non-perishable

merchandise from distribution facilities to clubs.

Intellectual Property

We regard our trademarks, service marks, copyrights, patents, domain names, trade dress, trade secrets, proprietary

technologies, and similar intellectual property as important to our success, and with respect to our associates, customers and

others, we rely on trademark, copyright, and patent law, trade-secret protection, and confidentiality and/or license agreements to

protect our proprietary rights. We have registered, or applied for the registration of, a number of U.S. and international domain

names, trademarks, service marks and copyrights. Additionally, we have filed U.S. and international patent applications

covering certain of our proprietary technology. We have licensed in the past, and expect that we may license in the future,

certain of our proprietary rights to third parties.

uppl

iers and Supply Chain

As a retailer and warehouse club operator, we utilize a global supply chain that includes both U.S. and international suppliers

from whom we purchase the merchandise that we sell in our stores, clubs and online. In many instances, we purchase

merchandise from producers located near the stores and clubs in which such merchandise will be sold, particularly products in

the "fresh" category. Consistent with applicable laws, we offer our suppliers the opportunity to efficiently sell significant

quantities of their products to us. These relationships enable us to obtain pricing that reflects the volume, certainty and cost-

effectiveness these arrangements provide to such suppliers, which in turn enables us to provide low prices to our customers.

Our suppliers are subject to standards of conduct, including requirements that they comply with local labor laws, local worker

safety laws and other applicable laws. Our ability to acquire from our suppliers the assortment and volume of products we wish

to offer to our customers, to receive those products within the required time through our supply chain and to distribute those

products to our stores and clubs, determines, along with other supply chain logistics matters (such as containers or port access

for example), in part, our in-stock levels in our stores and clubs and the attractiveness of our merchandise assortment we offer

to our customers and members.

Government Regulation

As a company with global operations, we are subject to the laws of the United States and multiple foreign jurisdictions in which

we operate and the rules and regulations of various governing bodies, which may differ among jurisdictions. For additional

information, see the risk factors herein in "Item 1A. Risk Factors

unde

r the sub-caption "Legal, Tax, Regulatory, Compliance,

Reputational and Other Risks."

Environmental, Social and Governance ("ESG") Priorities

Our ESG strategy is centered on the concept of creating shared value: we believe we maximize long-term value and create

competitive advantage for the Company by serving our stakeholders, including our customers, associates, shareholders,

suppliers, business partners, and communities. We believe that addressing such societal needs builds the value of our business,

including by enhancing customer and associate trust, creating new revenue streams, managing cost and risk, building

capabilities for future advantage, and strengthening the underlying systems on which Walmart and our stakeholders rely.

We prioritize the ESG issues that offer the greatest potential for Walmart to create shared value: issues that rank high in

relevance to our business and stakeholders and which Walmart is positioned to make a positive impact. Our current ESG

priorities are categorized into four broad themes: opportunity, sustainability, community, and ethics and integrity.

• Opportunity. Retail can be a powerful engine for inclusive economic opportunity. We aim to advance diversity,

equity, and inclusion, and create opportunity for Walmart associates (as further described in the Human Capital

Management section below), our suppliers and workers in supply chains, and the communities in which we operate.

Doing so helps us fulfill our customer mission, strengthens our business and helps people build a better life for

themselves and their families.

• Sustainability. Walmart's sustainability efforts focus on our ability to create and preserve long-term value for both

people and planet. With respect to people, our sustainability efforts include sourcing responsibly, helping prevent

forced labor, empowering women, creating inclusive economic opportunity and selling safer, healthier products. With

respect to the planet, our efforts aim to enhance the sustainability of product supply chains by reducing emissions,

protecting and restoring nature, and reducing waste. To help address the effects of climate change, Walmart has set

science-based targets for emissions reduction, including our goal to achieve zero emissions in our operations by 2040

—without offsets—and to reduce or avoid one billion metric tons of emissions in our value chain by 2030 under our

Project Gigaton™ initiative.

• Community. Walmart aims to serve and strengthen communities

y ope

rating our business in a way that meets the

eds of our customer and community stakeholder groups, including

y provi

ding

fer, healthier and more affordable

ood a

nd other products, disaster support, associate volunteerism, local grant programs and community cohesion

tiatives.

• Ethics and Integrity.

every level of our Company, we work to create a culture that inspires trust among our

ssoc

iates, with our customers, and in the communities we serve.

periodically publish information on our ESG priorities, strategies, and progress on our corporate website and may update

hose

disclosures from time to time. Nothing on our website, including our ESG reporting, documents or sections thereof, shall

deemed incorporated by reference into this Annual Report on

Form

10-K

or i

ncorporated by reference into any of our other

lings with the Securities and Exchange Commission.

Human Capital Management

At Walmart, we're committed to help people save money and live better around the world. This mission is delivered by our

associates who make the difference for our millions of customers and members every day. As of the end of fiscal 2023, we

ployed approximately 2.1 million associates worldwide, with approximately 1.6 million associates in the U.S. and

approximately 0.5 million associates internationally. In the U.S., approximately 93% of our associates are hourly and

approximately 70% of our associates are full-time.

We know the success and progress we've seen this year and throughout our Company's history is because of our associates who

work every day to fulfill our mission. That's why we're focused on providing opportunities for associates to grow and learn.

For some, we are a foundational entry point to develop critical skills that are relevant for a variety of careers, and for others a

place where associates can grow their careers across our global omni-channel business. No matter the role or location, we're

focused on developing, rewarding, and retaining associates in an ever-changing environment. As customer expectations and

technology change the nature of work, we know it's our people – our humanity – that will differentiate us from the competition,

so this must be a top priority.

Our workforce strategy includes the following strategic priorities: belonging, well-being, growth and digital.

Belonging

Build a Walmart for everyone: a diverse, equitable and inclusive company, where associates' ideas and opinions

matter. We are focused on having an inclusive culture where everyone feels they belong. We publish our diversity

representation twice yearly, and hold ourselves accountable to providing recurring culture, diversity, equity, and inclusion

updates to senior leadership, including our President and CEO, and members of the Board of Directors. Of the approximately

2.1 million associates employed worldwide, 52% identify as women. In the U.S., 50% of the approximately 1.6 million

associates identify as people of color.

We review our processes regarding our commitment to fair-pay practices. We are committed to creating a performance culture

where associates are rewarded based on meaningful factors such as qualifications, experience, performance, and the work they

do.

To build a company where associates feel engaged, valued and heard, we gather and respond to associates' feedback in a variety

of ways, including but not limited to our annual associate engagement survey, our Open Door process, and one-on-one

interactions. Management reviews the results of feedback obtained from our formal associate engagement survey.

Well-being

Focus on the physical, emotional, and financial well-being of our associates. We invest in our associates by

offering competitive wages, as well as a broad range of benefits that vary based on customary local practices and statutory

requirements. In the U.S., we offer affordable healthcare coverage to our full-time and eligible part-time associates as well as

company paid benefits such as 401(k) match, family building support, maternity leave, a paid parental leave program to all full-

time associates, paid time off, Associate Stock Purchase Plan match, life insurance, behavioral and mental health services, and a

store discount card or Sam's Club membership. Additional information about how we invest in our associates' well-being,

including wage structure and pay, can be found in our Human Capital brief in our most recent ESG reporting, which is available

on our corporate website. Nothing on our website, including our ESG reporting documents, or sections thereof, shall be

deemed incorporated by reference into this Annual Report on Form 10-K or incorporated by reference into any of our other

filings with the Securities and Exchange Commission. Certain information relating to retirement-related benefits we provide to

our associates is included in Note 11

o our Consolidated Financial Statements.

Growth

Provide ongoing growth, development and learning opportunities for associates and continue to attract talent with

new skills. We are invested in the growth of our associates in support of our business and their success by offering good jobs

that lead to great careers and better lives. We launched the global Walmart Academy to help associates build and grow their

careers, creating one of the largest learning ecosystems in the world. The global Walmart Academy offers training for on-the-

job retail skills, leadership courses, and well-being training, serving associates through combination of digital and in-person

offerings. The global focus builds on moving much more to a learning in the flow of work approach.

We also provide access to educational opportunities for our part-time and full-time frontline eligible associates in the U.S.

through our Live Better U program, which provides access to earn a high school diploma or a college degree. Walmart pays

100% of associates' college tuition, books and fees. Our Live Better U program aligns education offerings with Walmart's own

areas of growth, providing opportunities for associates to become great at the job they have today and prepare for the job of

tomorrow. Approximately 75% of our U.S. salaried store, club and supply chain management started their careers in hourly

positions. Our focus on providing a path of opportunity for our associates through robust training, competitive wages and

benefits, and career advancement creates a strong associate value proposition and strengthens our workforce.

Digital

Accelerate digital transformation and ways of working to improve the associate experience and drive business results.

To deliver a seamless customer and associate experience, we continue to invest in digital tools like Me@Walmart, MyClub and

Me@Campus to improve associate productivity, engagement, and performance. The MyFeedback app was developed to capture

real-time associate feedback. Walmart supports associates who are on the U.S. Medical Plan with free virtual visits which

include visits for medical doctor urgent care, along with mental health care with psychiatrist and psychologists.

nfor

mation About Our Executive Officers

The following chart names the executive officers of the Company as of the date of the filing of this Annual Report on Form 10-

K with the SEC, each of whom is elected by and serves at the pleasure of the Board of Directors. The business experience

shown for each officer has been his or her principal occupation for at least the past five years, unless otherwise noted.

Name Business Experience

Current

Position

Held Since Age

Daniel J. Bartlett Executive Vice President, Corporate Affairs, effective June 2013. From

November 2007 to June 2013, he served as the Chief Executive Officer and

President of U.S. Operations at Hill & Knowlton, Inc., a public relations

company.

2013 51

Rachel Brand Executive Vice President, Global Governance, Chief Legal Officer and

Corporate Secretary, effective April 2018. From May 2017 to February 2018,

she served as Associate Attorney General in the United States Department of

Justice.

2018 49

David M. Chojnowski Senior Vice President and Controller effective January 2017. From October

2014 to January 2017, he served as Vice President and Controller, Walmart

U.S.

2017 53

John Furner Executive Vice President, President and Chief Executive Officer, Walmart U.S.

effective November 2019. From February 2017 until November 2019, he

served as President and Chief Executive Officer, Sam's Club.

2019 48

Suresh Kumar Executive Vice President, Global Chief Technology Officer and Chief

Development Officer effective July 2019. From February 2018 until June 2019,

Mr. Kumar was Vice President and General Manager at Google LLC.

2019 58

Judith McKenna Executive Vice President, President and Chief Executive Officer, Walmart

International, effective February 2018. From February 2015 to January 2018,

she served as Executive Vice President and Chief Operating Officer of

Walmart U.S.

2018 56

Kathryn McLay Executive Vice President, President and Chief Executive Officer, Sam's Club

effective November 15, 2019. From February 2019 to November 2019, she

served as Executive Vice President, Walmart U.S. Neighborhood Markets.

From December 2015 until February 2019, she served as Senior Vice President,

U.S. Supply Chain.

2019 49

C. Douglas McMillon President and Chief Executive Officer, effective February 2014. From February

2009 to January 2014, he served as Executive Vice President, President and

Chief Executive Officer, Walmart International.

2014 56

Donna Morris Executive Vice President, Global People, and Chief People Officer, effective

February 2020. From April 2002 to January 2020, she worked at Adobe Inc. in

various roles, including most recently, Chief Human Resources Officer and

Executive Vice President, Employee Experience.

2020 55

John David Rainey Executive Vice President and Chief Financial Officer, effective June 2022.

From September 2016 to June 2022, he served as Chief Financial Officer and

Executive Vice President, Global Customer Operations for PayPal Holdings,

Inc.

2022 52

Website and Availability of SEC Reports and Other Information

Our corporate website is located at www.stock.walmart.com. We file with or furnish to the SEC Annual Reports on Form 10-

K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, amendments to those reports, proxy statements and annual

reports to shareholders, and, from time to time, other documents. The reports and other documents filed with or furnished to

the SEC are available to investors on or through our corporate website free of charge as soon as reasonably practicable after we

electronically file them with or furnish them to the SEC. The SEC maintains a website that contains reports, proxy and

information statements and other information regarding issuers, such as the Company, that file electronically with the SEC.

The address of that website is www.sec.gov. Our SEC filings, our Reporting Protocols for Senior Financial Officers and our

Code of Conduct can be found on our website at www.stock.walmart.com. These documents are available in print to any

shareholder who requests a copy by writing or calling our Investor Relations Department, which is located at our principal

offices.

scription of any substantive amendment or waiver of Walmart's Reporting Protocols for Senior Financial Officers or our

Code of Conduct for our chief executive officer, our chief financial officer and our controller, who is our principal accounting

officer, will be disclosed on our website at www.stock.walmart.com under the Corporate Governance section. Any such

description will be located on our website for a period of 12 months following the amendment or waiver.

ITEM 1A.

ISK

FACTORS

risks described below could, in ways we may or may not be able to accurately predict, materially and adversely affect our

business, results of operations, financial position and liquidity. Our business operations could also be affected by additional

factors that apply to all companies operating in the U.S. and globally. The following risk factors do not identify all risks that we

may face.

Strategic Risks

lure to successfully execute our omni-channel strategy and the cost of our investments in eCommerce and technology

may materially adversely affect our market position, net sales and financial performance.

The retail business continues to rapidly evolve and consumers increasingly embrace digital shopping. As a result, the portion of

total consumer expenditures with retailers and wholesale clubs occurring through digital platforms is increasing and the pace of

this increase could continue to accelerate.

Our strategy, which includes investments in eCommerce, technology, talent, supply chain automation, acquisitions, joint

ventures, store remodels and other customer initiatives, may not adequately or effectively allow us to continue to grow our

eCommerce business, increase comparable sales, maintain or grow our overall market position or otherwise offset the impact on

the growth of our business of a moderated pace of new store and club openings. The success of this strategy will depend in

large measure on our ability to continue building and delivering a seamless omni-channel shopping experience and

interconnected ecosystem for our customers that deepens and maintains our relationships with our customers across our various

businesses and partnerships and reinforces our overall enterprise strategy. The success of this strategy is further subject to the

related risks discussed in this Item 1A

ith the interconnected components of this enterprise strategy and an increasing

allocation of capital expenditures focused on these initiatives, changes in customer or member perceptions about our reputation

or our failure to successfully execute on individual components of this strategy may adversely affect our market position, net

sales and financial performance which could also result in impairment charges to intangible assets or other long-lived assets. In

addition, a greater concentration of eCommerce sales, including increasing online grocery sales, could result in a reduction in

the amount of traffic in our stores and clubs, which would, in turn, reduce the opportunities for cross-store or cross-club sales of

merchandise that such traffic creates and could reduce our sales within our stores and clubs and materially adversely affect our

financial performance.

Furthermore, the cost of certain investments in eCommerce, technology, talent, automation, including any operating losses

incurred, will adversely impact our financial performance in the short-term and failure to realize the benefits of these

investments may adversely impact our financial performance over the longer term.

If we do not timely identify or effectively respond to consumer trends or preferences, it could negatively affect our

relationship with our customers, demand for the products and services we sell, our market share and the growth of our

business.

It is difficult to predict consistently and successfully the products and services our customers will demand and changes in their

shopping patterns. The success of our business depends in part on how accurately we predict consumer demand, availability of

merchandise, the related impact on the demand for existing products and services and the competitive environment. Price

transparency, assortment of products, customer experience, convenience, ease and the speed and cost of shipping are of primary

importance to customers and continue to increase in importance, particularly as a result of digital tools and social media

available to consumers and the choices available to consumers for purchasing products. Our failure to adequately or effectively

respond to changing consumer tastes, preferences (including those related to ESG issues) and shopping patterns, or any other

failure on our part to timely identify or effectively respond to changing consumer tastes, preferences and shopping patterns

could negatively affect our reputation and relationship with our customers, the demand for the products we sell or services we

offer, our market share and the growth of our business.

We face strong competition from other retailers, wholesale club operators, omni-channel retailers, and other businesses

which could materially adversely affect our financial performance.

Each of our segments competes for customers, employees, digital prominence, products and services and in other important

aspects of its business with many other local, regional, national and global physical, eCommerce and omni-channel retailers,

social commerce platforms, wholesale club operators and retail intermediaries, as well as companies that offer services in

digital advertising, fulfillment and delivery services, health and wellness, and financial services. The omni-channel retail

landscape is highly competitive and rapidly evolving, and the entry of new, well-funded competitors may increase competitive

ssures. In addition, for eCommerce and other internet-based businesses, newer or smaller businesses may be better able to

innovate and compete with us.

We compete in a variety of ways, including the prices at which we sell our merchandise, merchandise selection and availability,

services offered to customers, location, store hours, in-store amenities, the shopping convenience and overall shopping

experience we offer, the attractiveness and ease of use of our digital platforms, cost and speed of and options for delivery to

customers of merchandise purchased through our digital platforms or through our omni-channel integration of our physical and

digital operations.

A failure to respond effectively to competitive pressures and changes in the retail and other markets in which we operate, omni-

channel innovations and omni-channel ecosystems developed by our competitors or delays or failure in execution of our

strategy could materially adversely affect our financial performance. See "Item 1. Business

bove for additional discussion of

the competitive situation of each of our reportable segments.

Certain segments of the retail industry are undergoing consolidation or substantially reducing operations, whether due to

bankruptcy, consolidation or other factors. Such consolidation, or other business combinations or alliances, competitive omni-

channel ecosystems, or reductions in operations may result in competitors with greatly improved financial resources, improved

access to merchandise, greater market penetration and other improvements in their competitive positions. Such business

combinations or alliances could allow these companies to provide a wider variety of products and services at competitive prices,

which could adversely affect our financial performance.

General or macro-economic factors, both domestically and internationally, may materially adversely affect our financial

performance.

General economic conditions and other economic factors, globally or in one or more of the markets we serve, may adversely

affect our financial performance. Higher interest rates, lower or higher prices of petroleum products, including crude oil,

natural gas, gasoline, and diesel fuel, higher costs for electricity and other energy, weakness in the housing market, inflation,

deflation, increased costs of essential services, such as medical care and utilities, higher levels of unemployment, decreases in

consumer disposable income, unavailability of consumer credit, higher consumer debt levels, changes in consumer spending

and shopping patterns, fluctuations in currency exchange rates, higher tax rates, imposition of new taxes or other changes in tax

laws, changes in healthcare laws, other regulatory changes, the imposition of tariffs or other measures that create barriers to or

increase the costs associated with international trade, overall economic slowdown or recession and other economic factors in

the U.S. or in any of the other markets in which we operate could adversely affect consumer demand for the products and

services we sell in the U.S. or such other markets, change the mix of products we sell to one with a lower average gross margin,

cause a slowdown in discretionary purchases of goods, adversely affect our net sales and result in slower inventory turnover and

greater markdowns of inventory, or otherwise materially adversely affect our operations and operating results and could result

in impairment charges to intangible assets, goodwill or other long-lived assets.

In addition, the economic factors listed above, any other economic factors or circumstances resulting in higher transportation,

labor, insurance or healthcare costs or commodity prices, including energy prices, and other economic factors in the U.S. and

other countries in which we operate can increase our cost of sales and operating, selling, general and administrative expenses

and otherwise materially adversely affect our operations and operating results.

The economic factors that affect our operations may also adversely affect the operations of our suppliers, which can result in an

increase in the cost to us of the goods we sell to our customers or, in more extreme cases, in certain suppliers not producing

goods in the volume typically available to us for sale.

The performance of strategic alliances and other business relationships to support the expansion of our business could

materially adversely affect our financial performance.

We may enter into strategic alliances and other business relationships in the countries in which we have existing operations or

in other markets to expand our business. These arrangements (such as ONE, our fintech joint venture, and our healthcare

initiative with UnitedHealth Group) may not generate the level of sales we anticipate when entering into the arrangement or

may otherwise adversely impact our business and competitive position relative to the results we could have achieved in the

absence of such alliance. In addition, any investment we make in connection with a strategic alliance, business relationship or

in certain of our recently divested markets, could materially adversely affect our financial performance.

rational Risks

obal or regional health pandemics or epidemics, including COVID-19, could negatively impact our business, financial

position and results of operations.

The emergence, severity, magnitude and duration of global or regional pandemics or epidemics are uncertain and difficult to

predict. A pandemic, such as COVID-19, or other epidemic could impact our business operations, demand for our products and

services, in-stock positions, costs of doing business, access to inventory, supply chain operations, the extent and duration of

measures to try to contain the spread of a virus or other disease (such as travel bans and restrictions, quarantines, shelter-in-

place orders, business and government shutdowns, and other restrictions on retailers), our ability to predict future performance,

exposure to litigation, and our financial performance, among other things. Customer behaviors changed rapidly during the

course of the COVID-19 pandemic. In the event of a resurgence of infections or future mutations, variants or related strains of

the virus become prevalent, customer demand for certain products may fluctuate and customer behaviors may change, which

may challenge our ability to anticipate and/or adjust inventory levels to meet that demand. These factors may result in higher

demand for certain products and less demand for others, as well as out-of-stock positions in certain products, along with delays

in delivering those products (due to supply chain and transportation issues) and could impact inventory levels in the future.

Other factors and uncertainties may include, but are not limited to: the severity and duration of the pandemic, including whether

there are additional outbreaks or spikes in the number of cases, future mutations or related strains of the virus in areas in which

we and our suppliers operate; further increased operational costs; evolving macroeconomic factors, including general economic

uncertainty, unemployment rates, and recessionary pressures; unknown consequences on our business performance and

initiatives stemming from the substantial investment of time, capital and other resources to the pandemic response; the

effectiveness and extent of administration of vaccinations and medical treatments, including for any variants; the pace of

recovery when the pandemic subsides; and the long-term impact of the pandemic or epidemic on our business, including

consumer behaviors. These risks and their impacts are difficult to predict and could otherwise disrupt and adversely affect our

operations and our financial performance.

To the extent that the COVID-19 pandemic continues to adversely affect the U.S. and the global economy, or a future pandemic

or epidemic occurs, such events may also heighten other risks described in this section, including but not limited to those

related to consumer behavior and expectations, competition, our reputation, implementation of strategic initiatives,

cybersecurity threats, payment-related risks, technology systems disruption, supply chain disruptions, labor availability and

cost, litigation, and regulatory requirements.

Natural disasters, climate change, geopolitical events, global health epidemics or pandemics, catastrophic and other

events could materially adversely affect our financial performance.

The occurrence of one or more natural disasters, such as hurricanes, tropical storms, floods, fires, earthquakes, tsunamis,

cyclones, typhoons; weather conditions such as major or extended winter storms, droughts and tornadoes, whether as a result of

climate change or otherwise; geopolitical tensions or events; regional or global health epidemics or pandemics or other

contagious outbreaks (such as COVID-19); and catastrophic and other events, such as war, civil unrest (including theft, looting

or vandalism), terrorist attacks or other acts of violence, including active shooter situations (such as those that have occurred in

our U.S. stores), or the loss of merchandise as a result of shrink or theft in countries in which we operate, in which our suppliers

are located, or in other areas of the world (such as in Ukraine where a war currently exists between Ukraine and Russia) could

adversely affect our operations and financial performance.

Such events could result in physical damage to, or the complete loss of, one or more of our properties, the closure of one or

more stores, clubs and distribution or fulfillment centers, limitations on store or club operating hours, the lack of an adequate

work force in a market, the inability of customers and associates to reach or have transportation to our stores and clubs affected

by such events, the evacuation of the populace from areas in which our stores, clubs and distribution and fulfillment centers are

located, the unavailability of our digital platforms to our customers, changes in the purchasing patterns of consumers (including

the frequency of visits by consumers to physical retail locations, whether as a result of limitations on large gatherings, travel

and movement limitations or otherwise) and in consumers' disposable income, the temporary or long-term disruption in the

supply of products from some suppliers, the disruption in the transport of goods from overseas, the disruption or delay in the

delivery of goods to our distribution and fulfillment centers or stores within a country in which we are operating, the reduction

in the availability of products in our stores, increases in the costs of procuring products as a result of either reduced availability

or economic sanctions, increased transportation costs (whether due to fuel prices, fuel supply, or otherwise), the disruption

(whether directly or indirectly) of critical infrastructure systems, banking systems, utility services or energy availability to our

stores, clubs and our facilities, and the disruption in our communications with our stores, clubs and our other facilities.

Furthermore, the long-term impacts of climate change, whether involving physical risks (such as extreme weather conditions,

drought, or rising sea levels) or transition risks (such as regulatory or technology changes) are expected to be widespread and

unpredictable. Certain impacts of physical risk may include: temperature changes that increase the heating and cooling costs at

stores, clubs, and distribution or fulfillment centers; extreme weather patterns that affect the production or sourcing of certain

commodities; flooding and extreme storms that damage or destroy our buildings and inventory; and heat and extreme weather

nts that cause long-term disruption or threats to the habitability of the communities in which Walmart operates. Relative to

transition risk, certain impacts may include: changes in energy and commodity prices driven by climate-related weather events;

prolonged climate-related events affecting macroeconomic conditions with related effects on consumer spending and

confidence; stakeholder perception of our engagement in climate-related policies; and new regulatory requirements resulting in

higher compliance risk and operational costs.

We bear the risk of losses incurred as a result of physical damage to, or destruction of, any stores, clubs and distribution or

fulfillment centers; theft, loss or spoilage of inventory; and business interruption caused by such events. These events and their

impacts could otherwise disrupt and adversely affect our operations and could materially adversely affect our financial

performance. Moreover, our operations in the U.S. comprise a significant portion of our financial and operational performance.

Therefore, any of the above matters that uniquely impact or are specifically concentrated in the U.S. could materially adversely

affect our financial and operational performance.

Risks associated with our suppliers could materially adversely affect our financial performance.

The products we sell are sourced from a wide variety of domestic and international suppliers. Global sourcing of many of the

products we sell is an important factor in our financial performance. We expect our suppliers to comply with applicable laws,

including labor, safety, anti-corruption and environmental laws, and to otherwise meet our required supplier standards of

conduct. Our ability to find qualified suppliers who uphold our standards, and to access products in a timely and efficient

manner and in the large volumes we may demand, is a significant challenge, especially with respect to suppliers located and

goods sourced outside the U.S.

Political and economic instability, as well as other impactful events and circumstances in the countries in which our suppliers

and their manufacturers are located (such as the COVID-19 pandemic), the financial instability of suppliers, suppliers' failure to

meet our terms and conditions or our supplier standards (including our responsible sourcing standards), labor problems

experienced by our suppliers and their manufacturers, the availability of raw materials to suppliers, merchandise safety and

quality issues, disruption or delay in the transportation of merchandise from the suppliers and manufacturers to our stores,

clubs, and other facilities, including as a result of labor slowdowns at any port at which a material amount of merchandise we

purchase enters into the markets in which we operate, currency exchange rates, transport availability and cost, transport

security, inflation and other factors relating to the suppliers and the countries in which they are located are beyond our control

(such as, for example, the factors that occurred with respect to the availability of supply for baby formula during the prior fiscal

year).

In addition, U.S. and international trade policies, tariffs and other restrictions on the exportation and importation of goods, trade

sanctions imposed between certain countries and entities, the limitation on the exportation or importation of certain types of

goods or of goods containing certain materials from other countries and other factors relating to foreign trade are beyond our

control. These and other factors affecting our suppliers and our access to products could adversely affect our operations and

financial performance.

If the products we sell are not safe or otherwise fail to meet our customers' expectations, we could lose customers, incur

liability for any injuries suffered by customers using or consuming a product we sell or otherwise experience a material

impact to our brand, reputation and financial performance. We are also subject to reputational and other risks related

to third-party sales on our digital platforms.

Our customers count on us to provide them with safe products. Concerns regarding the safety of food and non-food products

that we source from our suppliers or that we prepare and then sell could cause customers to avoid purchasing certain products

from us, or to seek alternative sources of supply for all of their food and non-food needs, even if the basis for the concern is

outside of our control. Any lost confidence on the part of our customers would be difficult and costly to reestablish and such

products also expose us to product liability or food safety claims. As such, any issue regarding the safety of any food or non-

food items we sell, regardless of the cause, could adversely affect our brand, reputation and financial performance. In addition,

third-parties sell goods on some of our digital platforms, which we refer to as marketplace transactions. Whether laws related

to these marketplace transactions, including, but not limited to, intellectual property and products liability laws, apply to us is

currently unsettled and any unfavorable changes or interpretations could expose us to liability, loss of sales, reduction in

transactions and deterioration of our competitive position. In addition, we may face reputational, financial and other risks,

including liability, for third-party sales of goods that are controversial, counterfeit, pirated, or stolen, or otherwise fail to

comply with applicable law or the proprietary rights of others. Although we have marketplace compliance controls and impose

contractual terms on sellers to prohibit sales of certain type of products, we may not be able to detect certain prohibited items,

enforce such terms, or collect sufficient damages for breaches. Any of these events could have a material adverse impact on our

business and results of operations and impede the execution of our eCommerce growth and enterprise strategy.

rely extensively on information and financial systems to process transactions, summarize results and manage our

business. Disruptions in our systems could harm our ability to conduct our operations.

Given the number of individual transactions we have each year, it is crucial that we maintain uninterrupted operation of our

business-critical information systems. Our information systems are subject to damage or interruption from power outages,

computer and telecommunications failures, computer viruses, worms, other malicious computer programs, denial-of-service

attacks, security incidents and breaches (including through cyberattacks, which may be from cybercriminals or sophisticated

state-sponsored threat actors), catastrophic events such as fires, major or extended winter storms, tornadoes, earthquakes and

hurricanes, usage errors by our associates or contractors, civil or political unrest, or armed hostilities. Our information systems

are essential to our business operations, including the processing of transactions, management of our associates, facilities,

logistics, inventories, physical stores and clubs and our online operations. Our information systems are not fully redundant and

our disaster recovery planning cannot account for all eventualities. If our systems are damaged, breached, attacked, interrupted,

or otherwise cease to function properly, we may have to make a significant investment to repair or replace them, and may

experience loss or corruption of critical data as well as suffer interruptions in our business operations in the interim. Any

interruption to our information systems may have a material adverse effect on our business or results of operations. In addition,

we frequently update our information technology hardware, software, processes and systems. The risk of system disruption is

increased when significant system changes are undertaken. If we fail to timely or successfully integrate and update our

information systems and processes, we may fail to realize the cost savings or operational benefits anticipated to be derived from

these initiatives. For example, during the first quarter of fiscal year ending January 31, 2024, we initiated an upgrade to our

existing financial system, including our general ledger and other applications. If we are unable to implement this upgrade as

planned, the effectiveness of our internal control over financial reporting could be adversely affected; our ability to assess those

controls adequately could be delayed; and our reputation, business, results of operations, financial condition and cash flows

could be negatively impacted.

If the technology-based systems that give our customers the ability to shop with us online and enable us to deliver

products and services do not function effectively, our operating results, as well as our ability to grow our omni-channel

business globally, could be materially adversely affected.

Increasingly, customers are using computers, tablets, and smart phones to shop with us and with our competitors and to do

comparison shopping. We use social media, online advertising, and email to interact with our customers and as a means to

enhance their shopping experience. As a part of our omni-channel sales strategy, we offer various pickup, delivery and

shipping programs including options where many products available for purchase online can be picked up by the customer or

member at a local Walmart store or Sam's Club, which provides additional customer traffic at such stores and clubs. Omni-

channel retailing is a rapidly evolving part of the retail industry and of our operations around the world, and we continue to

make investments in supply chain automation to support our omni-channel strategy. We must anticipate and meet our

customers' changing expectations while adjusting for technology investments and developments in our competitors' operations

through focusing on the building and delivery of a seamless shopping experience across all channels by each operating

segment. Moreover, some of the various technology systems and services on which we rely are provided and managed by

third-party service providers. To the extent either our or such other third-party systems and services do not perform or function

as anticipated, whether because of an inherent flaw in the technology or a faulty implementation, such failure can significantly

interfere with our ability to meet our customers' changing expectations. Any disruption or failure on our part to provide

attractive, user-friendly, and secure digital platforms that offer a wide assortment of merchandise and services at competitive

prices and with low cost and rapid delivery options and that continually meet the changing expectations of online shoppers and

developments in online and digital platform merchandising and related technology in a cost-efficient manner could place us at a

competitive disadvantage, result in the loss of eCommerce and other sales, harm our reputation with customers, have a material

adverse impact on the growth of our eCommerce business globally and have a material adverse impact on our business and

results of operations.

Our digital platforms, which are increasingly important to our business and continue to grow in complexity and scope, and the

systems on which they run, including those applications and systems used in our acquired eCommerce, technology or other

businesses, are regularly subject to cyberattacks. Those attacks involve attempts to gain unauthorized access to our eCommerce

websites (including marketplace platforms) or mobile commerce applications to obtain and misuse customers' or members'

information including personal information and/or payment information and related risks discussed in this Item 1A

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attacks, if successful, in addition to potential data misuse and/or loss, may also create denials of service or otherwise disable,

degrade or sabotage one or more of our digital platforms or otherwise significantly disrupt our customers' and members'

shopping experience, our supply chain integrity and continuity, and our ability to efficiently operate our business. If we are

unable to maintain the security of our digital platforms and keep them operating within acceptable parameters, we could suffer

loss of sales, reductions in transactions, reputational damage and deterioration of our competitive position and incur liability for

any damage to customers, members or others whose personal or confidential information is unlawfully obtained and misused,

any of which events could have a material adverse impact on our business and results of operations and impede the execution of

our strategy for the growth of our business.

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lure to maintain the privacy or security of the information relating to our company, customers, members,

associates, business partners and vendors, whether as a result of cyberattacks on our information systems or otherwise,

could damage our reputation, result in litigation or other legal actions against us, result in fines, penalties, and liability,

cause us to incur substantial additional costs, and materially adversely affect our business and operating results.

Like most retailers, we receive and store in our information systems personal information and/or payment information about our

customers and members, and we also receive and store information concerning our associates and vendors. In addition, our

health and wellness business operations, the Walmart Health locations, and third-party service providers who handle

information on our behalf, store and maintain personal health information. Some of this information is stored digitally in

connection with the digital platforms and technologies that we use to conduct and facilitate our various businesses. We utilize

third-party service providers for a variety of reasons, including, without limitation, for digital storage technology, content

delivery to customers and members, back-office support, and other functions. Such providers may have access to information

we hold about our customers, members, associates, business partners or vendors. In addition, our eCommerce operations

depend upon the secure transmission of confidential information over public networks, including information permitting

cashless payments.

Cyber threats are rapidly evolving and those threats and the means for obtaining access to information in digital and other

storage media are becoming increasingly sophisticated and frequent. Attacks against information systems and devices, whether

our own or those of our third-party service providers, create risk of cybersecurity incidents, including ransomware, malware, or

phishing incidents. We expect to continue to experience such attempted attacks in the future. Cyberattacks and threat actors can

be sponsored by particular countries or sophisticated criminal organizations or be the work of hackers with a wide range of

motives and expertise. We and the businesses with which we interact have experienced and continue to experience threats to

data and systems, including by perpetrators of random or targeted malicious cyberattacks, computer viruses, phishing incidents,

worms, bot attacks, ransomware or other destructive or disruptive software and attempts to misappropriate customer

information, including credit card and payment information, and cause system failures and disruptions. Mitigation and

remediation recommendations continue to evolve, and addressing vulnerabilities is a priority for us. The increased use of

remote work infrastructure in recent years has also increased the possible attack surfaces. Some of our systems and third-party

service providers' systems have experienced security incidents or breaches and although they have not had a material adverse

effect on our operating results, there can be no assurance of a similar result in the future.

Associate error or malfeasance, faulty password management, social engineering or other vulnerabilities and irregularities may

also result in a defeat of our or our third-party service providers' security measures and a compromise or breach of our or their

information systems. Moreover, hardware, software or applications we use may have inherent vulnerabilities or defects of

design, manufacture or operations or could be inadvertently or intentionally implemented or used in a manner that could

compromise information security.

Any compromise of our data security systems or of those of businesses with which we interact, which results in confidential

information being accessed, obtained, damaged, disclosed, destroyed, modified, lost or used by unauthorized persons could

harm our reputation and expose us to regulatory actions (including, with respect to health information, liability under the Health

Insurance Portability and Accountability Act of 1996, or "HIPAA"), customer attrition, remediation expenses, and claims from

customers, members, associates, vendors, financial institutions, payment card networks and other persons, any of which could

materially and adversely affect our business operations, financial position and results of operations. Because the techniques

used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may not immediately

produce signs of a compromise, we may be unable to anticipate these techniques or to implement adequate preventative

measures and we or our third-party service providers may not discover any security event, breach, vulnerability or compromise

of information for a significant period of time after the security incident occurs. To the extent that any cyberattack, ransomware

or incursion in our or one of our third-party service provider's information systems results in the loss, damage, misappropriation

or other compromise of information, we may be materially adversely affected by claims from customers, members, financial

institutions, regulatory authorities, payment card networks and others.

Our compliance programs, information technology, and enterprise risk management efforts cannot eliminate all systemic risk.

Disruptions in our systems caused by security incidents, breaches or cyberattacks – including attacks on those parties we do

business with (such as strategic partners, suppliers, banks, or utility companies) – could harm our ability to conduct our

operations, which may have a material effect on us, may result in losses that could have a material adverse effect on our

financial position or results of operations, or may have a cascading effect that adversely impacts our partners, third-party

service providers, customers, members, financial services firms, and other third parties that we interact with on a regular basis.

Our reputation with our customers and members is important to the success of our enterprise strategy, which combines

traditional retail, membership models, marketplaces, financial services, healthcare, and other customer and business services

into a series of interconnected assets to make it seamless for customers to interact with us. Security-related events could be

widely publicized and could materially adversely affect our reputation with our customers, members, associates, vendors and

shareholders, could harm our competitive position particularly with respect to our eCommerce operations, and could result in a

material reduction in our net sales in our eCommerce operations, as well as in our stores thereby materially adversely affecting

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rations, net sales, results of operations, financial position, cash flows and liquidity. Such events could also result in the

release to the public of confidential information about our operations and financial position and performance and could result in

litigation or other legal actions against us or the imposition of penalties, fines, fees or liabilities, which may not be covered by

our insurance policies. Moreover, a security compromise or ransomware event could require us to devote significant

management resources to address the problems created by the issue and to expend significant additional resources to upgrade

further the security measures we employ to guard personal and confidential information against cyberattacks and other attempts

to access or otherwise compromise such information and could result in a disruption of our operations, particularly our digital

operations.

We accept payments using a variety of methods, including cash, checks, credit and debit cards, electronic benefits transfer

(EBT) cards, mobile payments, and our private label credit cards and gift cards, and we may offer new payment options over

time, which may have information security risk implications. As a retailer accepting debit and credit cards for payment, we are

subject to various industry data protection standards and protocols, such as payment network security operating guidelines and

the Payment Card Industry Data Security Standard. We cannot be certain that the security measures we maintain to protect all

of our information technology systems are able to prevent, contain or detect cyberattacks, cyberterrorism, security incidents,

breaches, or other compromises from known malware or ransomware or other threats that may be developed in the future. In

certain circumstances, our contracts with payment card processors and payment card networks (such as Visa, Mastercard,

American Express and Discover) generally require us to adhere to payment card network rules which could make us liable to

payment card issuers and others if information in connection with payment cards and payment card transactions that we process

is compromised, which liabilities could be substantial.

Additionally, through various financial service partners and our ONE fintech joint venture, we offer various services such as

money transfers, digital payment platforms, bill payment, money orders, check cashing, prepaid access, co-branded credits

cards, installment lending, and earned wage access. These products and services require us to comply with legal and regulatory

requirements, including privacy, authentication and tokenization, global anti-money laundering and sanctions laws and

regulations as well as international, federal and state consumer financial laws and regulations. Failure to comply with these laws

and regulations could result in fines, sanctions, penalties and harm to our reputation.

The Company also has compliance obligations associated with privacy laws enacted to protect and regulate the collection, use,

retention, disclosure and transfer of personal information, which include liability for security and privacy breaches. Among

other obligations, breaches may trigger obligations under international, federal and state laws to notify affected individuals,

government agencies and the media. Consequently, cybersecurity attacks that cause a data breach could subject us to fines,

sanctions and other legal liability and harm our reputation.

Changes in type or scope of offerings of our health and wellness business or the Walmart Health business could

adversely affect our overall results of operations, cash flows and liquidity.

Walmart has retail pharmacy operations in our Walmart U.S. and Sam's Club segments across the U.S. and in various of our

international markets such as Canada and Mexico. We also provide management services to Walmart Health centers that offer

medical, dental, behavioral health and other health services in a number of states, as well as a national telehealth service

provider. In addition, Walmart's 10-year collaboration with UnitedHealth Group includes agreements for Walmart Health to

provide value-based care to patients in certain areas of the U.S., among other initiatives.

A large majority of our retail pharmacy net sales are generated by filling prescriptions for which we receive payment through

established contractual relationships with third-party payers and payment administrators, such as private insurers, governmental

agencies and pharmacy benefit managers ("PBMs"). Our retail pharmacy operations are subject to numerous risks, including:

reductions in the third-party reimbursement rates for drugs; changes in our payer mix (i.e., shifts in the relative distribution of

our pharmacy customers across drug insurance plans and programs toward plans and programs with less favorable

reimbursement terms); changes in third-party payer drug formularies (i.e., the schedule of prescription drugs approved for

reimbursement or which otherwise receive preferential coverage treatment); growth in, and our participation in or exclusion

from, pharmacy payer network arrangements including exclusive and preferred pharmacy network arrangements operated by

PBMs and/or any insurance plan or program; increases in the prices we pay for brand name and generic prescription drugs we

sell; increases in the administrative burdens associated with seeking third-party reimbursement; changes in the frequency with

which new brand name pharmaceuticals become available to consumers; introduction of lower cost generic drugs as substitutes

for existing brand name drugs for which there was no prior generic drug competition; changes in drug mix (i.e., the relative

distribution of drugs customers purchase at our pharmacies between brands and generics); changes in the health insurance

market generally; changes in the scope of or the elimination of Medicare Part D or Medicaid drug programs; increased

competition from other retail pharmacy operations including competitors offering online retail pharmacy options and/or home

delivery options; further consolidation and strategic alliances among third-party payers, PBMs or purchasers of drugs; overall

economic conditions and the ability of our pharmacy customers to pay for drugs prescribed for them to the extent the costs are

not reimbursed by a third-party; failure to meet any performance or incentive thresholds to which our level of third-party

reimbursement may be subject; changes in laws or regulations or the practices of third-party payers and PBMs related to the use

of third-party financial assistance to assist our pharmacy customers with paying for drugs prescribed for them; and any

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tional changes in the state or federal regulatory environment for the retail pharmacy industry and the pharmaceutical

industry, including as a result of health reform efforts, and other changes to or novel interpretations of existing state or federal

laws, rules and regulations that affect our retail pharmacy business.

If the supply of certain pharmaceuticals provided by one or more of our vendors were to be disrupted for any reason, our

pharmacy operations could be severely affected until at least such time as we could obtain a new supplier for such

pharmaceuticals. Any such disruption could cause reputational damage and result in a significant number of our pharmacy

customers transferring their prescriptions to other pharmacies.

Walmart Health clinical operations are also subject to numerous risks, including but not limited to: reductions in the third-party

reimbursement rates for services; changes in our payer mix; changes in the health insurance market generally; our inability to

retain and negotiate favorable contracts with private third-party payers, including managed care plans; competition for patients

from other healthcare providers, including those that offer telehealth services; changes to healthcare provider utilization

practices and treatment methodologies; trends toward value-based purchasing and price transparency; overall economic

conditions and the ability of patients to pay for services; staffing challenges, including retention of a sufficient number and

quality of healthcare professionals; compliance with the complex and extensive laws and regulations governing the healthcare

industry; changes in laws and regulations, including as a result of health reform efforts; and healthcare technology initiatives,

including those related to patient data and interoperability; and public health conditions.

One or a combination of the factors above may adversely affect the volumes of brand name and generic pharmaceuticals we

sell, our cost of sales associated with our retail pharmacy operations, and the net sales and gross margin of those operations or

result in the loss of cross-store or cross-club selling opportunities. In addition, these and other factors may adversely affect the

type, volume and mix of services we provide, the reimbursement we receive for health and wellness services rendered, and the

scope and pace of expansion of Walmart Health and related offerings. Any of these developments could, in turn, adversely

affect our overall net sales, other results of operations, cash flows and liquidity.

Our failure to attract and retain qualified associates, increases in wage and benefit costs, changes in laws and other

labor issues could materially adversely affect our financial performance.

Our ability to continue to conduct and expand our operations depends on our ability to attract and retain a large and growing

number of qualified associates globally. Our ability to meet our labor needs, including our ability to find qualified personnel to

fill positions that become vacant at our existing stores, clubs, distribution and fulfillment centers and corporate offices, while

controlling our associate wage and related labor costs, is generally subject to numerous external factors, including the

availability of a sufficient number of qualified persons in the work force of the markets in which we operate, unemployment

levels within those markets, prevailing wage rates, changing demographics, health and other insurance costs and adoption of

new or revised employment and labor laws and regulations. Additionally, our ability to successfully execute organizational

changes, including our enterprise strategy and management transitions within the Company's senior leadership, and to

effectively motivate and retain associates are critical to our business success. We compete for talent with other retail and non-

retail businesses, including, for example, technology, health and wellness, and fintech businesses, and invest significant

resources in training and motivating our associates. Increased competition among potential employers at all levels, including

senior management and executive levels, could result in increased associate costs or make it more difficult to recruit and retain

associates. If we are unable to locate, attract or retain qualified personnel, or manage leadership transition successfully, the

quality of service we provide to our customers may decrease and our financial performance may be adversely affected.

In addition, if our costs of labor or related costs increase for other reasons or if new, revised, or novel interpretations of existing

labor laws, rules or regulations or healthcare laws are adopted or implemented that further increase our labor costs, our financial

performance could be materially adversely affected.

Financial Risks

lure to meet market expectations for our financial performance could adversely affect the market price and volatility

of our stock.

We believe that the price of our stock generally reflects high market expectations for our future operating results. Any failure

to meet or delay in meeting these expectations, including our consolidated net sales, consolidated operating income, capital

expenditures, comparable store and club sales growth rates, eCommerce growth rates, gross margin, or earnings and adjusted

earnings per share could cause the market price of our stock to decline, as could changes in our dividend or stock repurchase

programs or policies, changes in our effective tax rates, changes in our financial estimates and recommendations by securities

analysts or, failure of Walmart's performance to compare favorably to that of other retailers may have a negative effect on the

price of our stock.

uctuations in foreign exchange rates may materially adversely affect our financial performance and our reported

results of operations.

Our operations in countries other than the U.S. are conducted primarily in the local currencies of those countries. Our

Consolidated Financial Statements are denominated in U.S. dollars, and to prepare those financial statements we must translate

the amounts of the assets, liabilities, net sales, other revenues and expenses of our operations outside of the U.S. from local

currencies into U.S. dollars using exchange rates for the current period. In recent years, fluctuations in currency exchange rates

that were unfavorable have had adverse effects on our reported results of operations.

As a result of such translations, fluctuations in currency exchange rates from period-to-period that are unfavorable to us may

also result in our Consolidated Financial Statements reflecting significant adverse period-over-period changes in our financial

performance or reflecting a period-over-period improvement in our financial performance that is not as robust as it would be

without such fluctuations in the currency exchange rates. Such unfavorable currency exchange rate fluctuations will adversely

affect the reported performance of our Walmart International operating segment and have a corresponding adverse effect on our

reported consolidated results of operations.

We may pay for products we purchase for sale in our stores and clubs around the world with a currency other than the local

currency of the country in which the goods will be sold. When we must acquire the currency to pay for such products and the

exchange rates for the payment currency fluctuate in a manner unfavorable to us, our cost of sales may increase and we may be

unable or unwilling to change the prices at which we sell those goods to address that increase in our costs, with a corresponding

adverse effect on our gross profit. Consequently, unfavorable fluctuations in currency exchange rates have and may continue to

adversely affect our results of operations.

Legal, Tax, Regulatory, Compliance, Reputational and Other Risks

international operations subject us to legislative, judicial, accounting, legal, regulatory, tax, political and economic

risks and conditions specific to the countries or regions in which we operate, which could materially adversely affect our

business or financial performance.

In addition to our U.S. operations, we operate retail and eCommerce businesses in Africa, Canada, Central America, Chile,

China, India and Mexico.

During fiscal 2023, our Walmart International operations generated approximately 17% of our consolidated net sales. Walmart

International's operations in various countries also source goods and services from other countries. Our future operating results

in these countries could be negatively affected by a variety of factors, most of which are beyond our control. These factors

include political conditions, including political instability, local and global economic conditions, legal and regulatory

constraints (such as regulation of product and service offerings including regulatory restrictions (such as foreign ownership

restrictions) on eCommerce and retail operations in international markets, such as India), restrictive governmental actions (such

as trade protection measures or nationalization), antitrust and competition law regulatory matters (such as the competition

investigations currently underway in Mexico related to our subsidiary Wal-Mart de Mexico, in Canada related to our subsidiary

Wal-Mart Canada and competition proceedings in India related to our Flipkart subsidiary), local product safety and

environmental laws, tax regulations, local labor laws, anti-money laundering laws and regulations, trade policies, foreign

exchange or currency regulations, laws and regulations regarding consumer and data protection, and other matters in any of the

countries or regions in which we operate, now or in the future.

The economies of some of the countries in which we have operations have in the past suffered from high rates of inflation and

currency devaluations, which, if they occurred again, could adversely affect our financial performance. Other factors which

may impact our international operations include foreign trade, monetary and fiscal policies of the U.S. and of other countries,

laws, regulations and other activities of foreign governments, agencies and similar organizations, and risks associated with

having numerous facilities located in countries that have historically been less stable than the U.S. Additional risks inherent in

our international operations generally include, among others, the costs and difficulties of managing international operations,

adverse tax consequences and greater difficulty in enforcing intellectual property rights in countries other than the U.S. The

various risks inherent in doing business in the U.S. generally also exist when doing business outside of the U.S., and may be

exaggerated by the difficulty of doing business in numerous sovereign jurisdictions due to differences in culture, geopolitical

tensions or events, laws and regulations.

In foreign countries in which we have operations, a risk exists that our associates, contractors or agents could, in contravention

of our policies, engage in business practices prohibited by U.S. laws and regulations applicable to us, such as the Foreign

Corrupt Practices Act or the laws and regulations of other countries. We maintain a global policy prohibiting such business

practices and have in place a global anti-corruption compliance program designed to ensure compliance with these laws and

regulations. Nevertheless, we remain subject to the risk that one or more of our associates, contractors or agents, including

those based in or from countries where practices that violate such U.S. laws and regulations or the laws and regulations of other

countries may be customary, will engage in business practices that are prohibited by our policies, circumvent our compliance

rogra

ms and, by doing so, violate such laws and regulations. Any such violations, even if prohibited by our internal policies,

could adversely affect our business or financial performance and our reputation.

Changes in tax and trade laws and regulations could materially adversely affect our financial performance.

In fiscal 2023, our Walmart U.S. and Sam's Club operating segments generated approximately 83% of our consolidated net

sales. Significant changes in tax and trade policies, including tariffs and government regulations affecting trade between the

U.S. and other countries where we source many of the products we sell in our stores and clubs could have an adverse effect on

our business and financial performance. A significant portion of the general merchandise we sell in our U.S. stores and clubs is

manufactured in other countries. Any such actions including the imposition of further tariffs on imports could increase the cost

to us of such merchandise (whether imported directly or indirectly) and cause increases in the prices at which we sell such

merchandise to our customers, which could materially adversely affect the financial performance of our U.S. and international

operations as well as our business.

We are subject to income taxes and other taxes in both the U.S. and the foreign jurisdictions in which we currently operate or

have historically operated. The determination of our worldwide provision for income taxes and current and deferred tax assets

and liabilities requires judgment and estimation. Our income taxes could be materially adversely affected by earnings being

lower than anticipated in jurisdictions that have lower statutory tax rates and higher than anticipated in jurisdictions that have

higher statutory tax rates, by changes in the valuation of our deferred tax assets and liabilities, or by changes in worldwide tax

laws, tax rates, regulations or accounting principles.

We are also exposed to future tax legislation, as well as the issuance of future regulations and changes in administrative

interpretations of existing tax laws, any of which can impact our current and future years' tax provision. The effect of such

changes in tax law could have a material effect on our business, financial position and results of operations. In the U.S., the Tax

Cuts and Jobs Act of 2017 (the "Tax Act") significantly changed federal income tax laws that affect U.S. corporations. As

further guidance is issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, any resulting changes in

our estimates will be treated in accordance with the relevant accounting guidance. Compliance with the Tax Act and any other

new tax rules, regulations, guidance, and interpretations, including collecting information not regularly produced by the

Company or unexpected changes in our estimates, may require us to incur additional costs and could affect our results of

operations.

In addition, legislatures and taxing authorities in many jurisdictions in which we operate may enact changes to or seek to

enforce novel interpretations of their tax rules. These changes could include modifications that have temporary effect and more

permanent changes. For example, the Organization for Economic Cooperation and Development (the "OECD"), the European

Union and other countries (including countries in which we operate) have committed to enacting substantial changes to

numerous long-standing tax principles impacting how large multinational enterprises are taxed. In particular, the OECD's Pillar

Two initiative introduces a 15% global minimum tax applied on a country-by-country basis and for which many jurisdictions

have now committed to an effective enactment date starting January 1, 2024. The impact of these potential new rules as well as

any other changes in domestic and international tax rules and regulations could have a material effect on our effective tax rate.

Furthermore, we are subject to regular review and audit by both domestic and foreign tax authorities as well as subject to the

prospective and retrospective effects of changing tax regulations and legislation. Although we believe our tax estimates are

reasonable, the ultimate tax outcome may materially differ from the tax amounts recorded in our Consolidated Financial

Statements and may materially affect our income tax provision, net income, or cash flows in the period or periods for which

such determination and settlement is made.

Changes in and/or failure to comply with other laws, regulations, and interpretations of such laws and regulations

specific to the businesses and jurisdictions in which we operate could materially adversely affect our reputation, market

position, or our business and financial performance.

We operate in complex regulated environments in the U.S. and in other countries in which we operate and could be materially

adversely affected by changes to existing legal requirements including the related interpretations and enforcement practices,

new legal requirements and/or any failure to comply with applicable regulations. In addition, the degree of regulatory, political,

and media scrutiny we face increases the likelihood that our efforts to adhere our practices and procedures to comply with these

laws and legal requirements may be subject to frequent or increasing challenges.

Our health and wellness operations in the U.S. and the operations of the Walmart Health locations are subject to numerous

federal, state and local laws and regulations including, but not limited to, those related to: licensing, reimbursement

arrangements, and other requirements and restrictions; registration and regulation of pharmacies; dispensing and sale of

controlled substances and products containing pseudoephedrine; governmental and commercial reimbursement (including

Medicare and Medicaid); data privacy and security and the sharing and interoperability of data, including obligations and

restrictions related to health information (such as those imposed under HIPAA); billing and coding for healthcare services and

properly handling overpayments; debt collection; necessity and adequacy of healthcare services; relationships with referral

sources and referral recipients and other fraud and abuse issues, such as those addressed by anti-kickback and false claims laws

and patient inducement regulations; qualification of healthcare practitioners; quality and standards of medical services and

qui

pment; and the practice of the professions of pharmacy, medical, dental, and behavioral healthcare services, including

limitations on the corporate practice of medicine in certain states.

Health-related legislation at the federal and state level may have an adverse effect on our business or require us to modify

certain aspects of our operations. For example, in the U.S., the Drug Enforcement Administration ("DEA") and various other

regulatory authorities regulate the purchase, distribution, maintenance and dispensing of pharmaceuticals and controlled

substances. We are required to hold valid DEA and state-level licenses, meet various security and operating standards and

comply with the federal and various state controlled substance acts and related regulations governing the sale, dispensing,

disposal and holding of controlled substances. The DEA, the U.S. Food and Drug Administration and state regulatory

authorities have broad enforcement powers, including the ability to seize or recall products and impose significant criminal,

civil and administrative sanctions for violations of these laws and regulations. In addition, there has been recent heightened

governmental and public scrutiny of pharmaceutical product pricing, which has resulted in federal and state legislation and

regulations, executive orders and other initiatives and proposals designed to increase transparency in pharmaceutical product

pricing and reform government program reimbursement methodologies (for example, the Inflation Reduction Act, which

includes, among other matters, policies designed to impact drug prices and reduce drug spending by the federal government).

Other health reform efforts at the federal and state levels may also impact our business or require us to modify certain aspects of

our operations. We may not be able to predict the nature or success of reform initiatives, and the resulting uncertainties may

have an adverse effect on our business.

We are also governed by foreign, national and state laws and regulations of general applicability, including laws and regulations

related to competition and antitrust matters; protection of the environment and health and safety matters, including exposure to,

and the management and disposal of, hazardous substances; food and drug safety, including drug supply chain security

requirements; trade, consumer protection, and safety, including the availability, sale, price label accuracy, advertisement, and

promotion of products we sell and the financial services we offer (including through our digital channels, stores and clubs as

well as our ONE fintech joint venture); anti-money laundering prohibitions; consumer financial protection laws; economic,

trade, and other sanctions matters; licensure, certification, and enrollment with government programs; data privacy and security

and the sharing and interoperability of data; working conditions, health and safety, equal employment opportunity, employee

benefit and other labor and employment matters; and health and wellness related regulations for our pharmacy operations

outside of the U.S. In addition, certain financial services we offer or make available are subject to legal and regulatory

requirements, including those intended to help detect and prevent money laundering, fraud and other illicit activity as well as

consumer financial protections laws and U.S. sanctions. Increasing governmental and societal attention to ESG matters,

including expanding mandatory and voluntary reporting diligence, and disclosure topics such as climate change, sustainability

(including with respect to our supply chain), natural resources, waste reduction, energy, human capital, and risk oversight could

expand the nature, scope, and complexity of matters that we are required to control, assess, and report.

Moreover, we are also subject to data privacy and protection laws regulating the collection, use, retention, disclosure, transfer

and processing of personal information, such as the California Consumer Privacy Act ("CCPA"), which was significantly

modified by the California Privacy Rights Act ("CPRA"), new comprehensive privacy legislation passed in Connecticut (the

Connecticut Data Protection Act), Colorado (the Colorado Privacy Act), Utah (the Utah Privacy Act) and Virginia (the

Consumer Data Protection Act), each of which go into effect in 2023, as well as other laws and regulations such as the Illinois

Biometric Information Privacy Act, the European Union's General Data Protection Regulation ("GDPR"), the United

Kingdom's General Data Protection Regulation (which implements the GDPR into U.K. law), China's Personal Information

Protection Act, and similar legislation in Quebec (An Act to modernize legislative provisions as regards the protection of

personal information, SQ 2021, c 25). The potential effects of these laws are far-reaching, continue to evolve, and may require

us to modify our data processing practices and policies and to incur substantial costs and expenses to comply. These and other

privacy and cybersecurity laws may carry significant potential penalties for noncompliance. For example, in the case of non-

compliance with a material provision of the GDPR (such as non-adherence to the core principles of processing personal data),

regulators have the authority to levy a fine in an amount that is up to the greater of €20 million or 4% of global annual turnover

in the prior year. These administrative fines are discretionary and based, in each case, on a multi-factored approach. Residents

in jurisdictions with comprehensive privacy laws have expanded rights to access, correct and require deletion of their personal

information, opt out of certain personal information sharing and receive detailed information about how their personal

information is used. Laws such as those in California, Connecticut, Colorado, Illinois, Utah, and Virginia may allow civil

penalties for violations, and CCPA and CPRA provide a private right of action for data breaches. Furthermore, our marketing

and customer engagement activities are subject to communications privacy laws such as the Telephone Consumer Protection

Act. We may be subjected to penalties and other consequences for noncompliance, including changing some portions of our

business. Even an unsuccessful challenge by customer or regulatory authorities of our activities could result in adverse

publicity, impact our reputation and could require a costly response from and defense by us.

The impact of new laws, regulations and policies and the related interpretations, as well as changes in enforcement practices or

regulatory scrutiny as to existing laws and regulations (including, but not limited to, in the U.S., shifting enforcement priorities

for existing antitrust, competition, and pricing laws, as well as proposed new rules and regulations) generally cannot be

predicted, and changes in applicable laws, regulations and policies and the related interpretations and enforcement practices of

sting laws and regulations may require extensive system and operational changes, be difficult to implement, increase our

operating costs, require significant capital expenditures, or adversely impact the cost or attractiveness of the products or

services we offer, or result in adverse publicity and harm our reputation. If we fail to predict or respond adequately to changes,

including by implementing strategic and operational initiatives, or do not respond as effectively as our competitors, our

business, operations, and financial performance may be adversely affected.

In addition, we may face audits or investigations by one or more government agencies relating to our compliance with

applicable laws and regulations. The regulatory, political, and media scrutiny we face, which may continue, amplifies these

risks. To the extent a regulator or court disagrees with our interpretation of these laws and determines that our practices are not

in compliance with applicable laws and regulations, we could be subject to civil and criminal penalties that could adversely

affect the continued operation of our businesses, including: suspension of payments from government programs; loss of

required licenses and certifications; loss of authorizations to participate in or exclusion from government programs, including

the Medicare and Medicaid programs in the U.S.; termination from contractual relationships, including those with our drug

suppliers and third-party payers; and significant fines or monetary damages. Failure to comply with applicable legal or

regulatory requirements in the U.S. or in any of the countries in which we operate could result in significant legal and financial

exposure, damage to our reputation, and have a material adverse effect on our business operations, financial position and results

of operations.

We are subject to risks related to litigation and other legal proceedings that may materially adversely affect our results

of operations, financial position and liquidity.

We operate in a highly regulated and litigious environment. We are involved in legal proceedings, including litigation,

arbitration and other claims, and investigations, inspections, audits, claims, inquiries and similar actions by pharmacy,

healthcare, tax, environmental and other governmental authorities. We may also have indemnification obligations for legal

commitments of certain businesses we have divested. Legal proceedings, in general, and securities, derivative action and class

action and multi-district litigation, in particular, can be expensive and disruptive. Some of these suits may purport or may be

determined to be class actions and/or involve parties seeking large and/or indeterminate amounts, including punitive or

exemplary damages, and may remain unresolved for several years. For example, we are currently a defendant in a number of

cases containing class or collective-action allegations, or both, in which the plaintiffs have brought claims under federal and

state wage and hour laws, as well as a number of cases containing class-action allegations in which the plaintiffs have brought

claims under federal and state consumer laws.

The Company has been responding to subpoenas, information requests and investigations from governmental entities related to

nationwide controlled substance dispensing and distribution practices involving opioids and also is a defendant in numerous

litigation proceedings related to opioids, including the consolidated multidistrict litigation entitled In re National Prescription

Opiate Litigation (MDL No. 2804) currently pending in the U.S. District Court for the Northern District of Ohio. Similar cases

that name the Company also have been filed in state courts by state, local and tribal governments, healthcare providers and

other plaintiffs. Plaintiffs are seeking compensatory and punitive damages, as well as injunctive relief including abatement.

The Company cannot predict the number of such claims that may be filed, and cannot reasonably estimate any loss or range of

loss that may arise from such claims and the related opioid matters. In addition, in July 2021, the Directorate of Enforcement in

India issued a show cause notice to Flipkart and other parties requesting the recipients show cause as to why further

proceedings under India's Foreign Direct Investment rules and regulations should not be initiated against them based on alleged

violations that related to a period prior to the Company's acquisition of a majority stake in Flipkart in 2018. The Company can

provide no assurance as to the scope or outcome of any proceeding that might result from the notice, the amount of proceeds the

Company may receive in indemnification, and can provide no assurance as to whether there will be a material adverse effect to

its business or its consolidated financial statements. The Company is also a defendant in litigation with the Federal Trade

Commission regarding the Company's money transfer agent services and is also cooperating with and responding to subpoenas

issued by the U.S Attorney's Office for the Middle District of Pennsylvania on behalf of the U.S. Department of Justice

regarding the Company's consumer fraud prevention program and anti-money laundering compliance related to the Company's

money transfer services, where Walmart is an agent. The Company is unable to predict the outcome of the litigation or

investigations or any other related actions by governmental entities regarding these matters and can provide no assurance as to

the scope and outcome of these matters and whether its business, financial position, results of operations or cash flows will not

be materially adversely affected. We discuss in more detail these cases and other litigation to which we are party below under

the caption "Item 3. Legal Proceedings" and in Note 10

n the "Notes to our Consolidated Financial Statements," which are part

of this Annual Report on Form 10-K.

amended and restated bylaws designate the Court of Chancery of the State of Delaware as the sole and exclusive

forum for certain types of actions and proceedings that may be initiated by our shareholders, which could increase the

costs for our shareholders to bring claims, discourage our shareholders from bringing claims, or limit our shareholders'

ability to obtain a favorable judicial forum for disputes with us or our directors, officers, associates or shareholders in

such capacity.

Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the

State of Delaware will, to the fullest extent permitted by law, be the sole and exclusive forum for claims, including derivative

claims that are based upon a violation of a duty by a current or former director, officer, associate or shareholder in such capacity

or as to which the Delaware General Corporation Law confers jurisdiction upon the Court of Chancery. The exclusive forum

provision may increase the costs for a shareholder to bring a claim or limit a shareholder's ability to bring a claim in a judicial

forum that the shareholder finds favorable for disputes with us or our directors, officers, associates or shareholders in such

capacity, which may discourage such lawsuits against us and such persons. Alternatively, if a court were to find these

provisions of our bylaws inapplicable to, or unenforceable in respect of, the claims as to which they are intended to apply, then

we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our

business, financial position or results of operations. While the exclusive forum provision applies to state and federal law claims,

our shareholders will not be deemed to have waived our compliance with, and the exclusive forum provision will not preclude

or contract the scope of exclusive federal or concurrent jurisdiction for actions brought under, the federal securities laws,

including the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, and the rules and

regulations promulgated thereunder.

Our reputation may be adversely affected if we are not able to achieve our ESG goals.

We strive to deliver shared value through our business and our diverse stakeholders expect us to make significant progress in

certain ESG priority issue areas. From time to time, we announce certain aspirations and goals relevant to our priority ESG

issues. We periodically publish information about our ESG priorities, strategies, and progress on our corporate website and

update our ESG reporting from time to time. Achievement of these aspirations and goals is subject to risks and uncertainties,

many of which are outside of our control, and it is possible that we may fail, or be perceived to have failed, in the achievement

of our ESG goals or that certain of our customers, associates, shareholders, investors, suppliers, business partners, government

agencies, and non-governmental organizations might not be satisfied with our goals or our efforts toward achieving those goals.

Certain challenges we face in the achievement of our ESG objectives are also captured within our ESG reporting, which is not

incorporated by reference into and does not form any part of this Annual Report on Form 10-K. A failure or perceived failure to

meet our goals could adversely affect public perception of our business, associate morale or customer or shareholder support.

ITEM 1B.

NRE

SOLVED STAFF COMMENTS

one

EM 2.

PERTIES

ted States

The Walmart U.S. and Sam's Club segments comprise the Company's operations in the U.S. As of January 31, 2023, unit

counts for Walmart U.S. and Sam's Club are summarized by format for each state and territory as follows:

almart U.S

. Sam's Club

State or Territory Supercenters Discount Stores

Neighborhood

Markets and

other small

formats Clubs Grand Total

Alabama 101 1 29 13 144

Alaska 7 2 — — 9

Arizona 83 2 28 12 125

Arkansas 76 5 36 9 126

California 144 68 78 30 320

Colorado 70 4 18 17 109

Connecticut 12 20 1 1 34

Delaware 6 3 — 1 10

Florida 233 9 98 46 386

Georgia 154 2 35 24 215

Hawaii — 10 — 2 12

Idaho 23 — 3 1 27

Illinois 139 15 11 25 190

Indiana 97 6 11 13 127

Iowa 58 2 — 9 69

Kansas 58 2 15 9 84

Kentucky 77 7 9 9 102

Louisiana 88 2 34 14 138

Maine 19 3 — 3 25

Maryland 31 16 3 11 61

Massachusetts 27 21 4 — 52

Michigan 90 3 9 23 125

Minnesota 65 3 1 12 81

Mississippi 65 3 11 7 86

Missouri 112 9 18 19 158

Montana 14 — — 2 16

Nebraska 35 — 7 5 47

Nevada 30 2 11 7 50

New Hampshire 19 7 — 2 28

New Jersey 35 27 1 8 71

New Mexico 35 2 9 7 53

New York 82 16 9 12 119

North Carolina 143 6 45 22 216

North Dakota 14 — — 3 17

Ohio 138 5 2 27 172

Oklahoma 81 7 34 13 135

Oregon 29 7 10 — 46

Pennsylvania 116 19 3 24 162

Puerto Rico 13 5 — 7 25

Rhode Island 5 4 — — 9

South Carolina 83 — 26 13 122

South Dakota 15 — — 2 17

Tennessee 117 1 19 14 151

Texas 391 18 110 82 601

Utah 41 — 11 8 60

Vermont 3 3 — — 6

Virginia 110 4 22 15 151

Washington 52 9 5 — 66

Washington D.C. 3 — 2 — 5

West Virginia 38 — 1 5 44

Wisconsin 83 4 2 10 99

Wyoming 12 — — 2 14

U.S. total 3,572 364 781 600 5,317

Square feet (in thousands)

634,615 38,226 28,885 80,351 782,076

nte

rnational

The Walmart International segment comprises the Company's operations outside of the U.S. Unit counts as of January 31,

2023

(1)

for Walmart International are summarized by major category for each geographic market as follows:

eograp

hic Market Retail Wholesale Total

Square

feet

(2)

Africa

(3)

289 86 375 20,939

Canada 402 — 402 52,557

Central America

(4)

882 — 882 13,996

Chile 379 13 392 17,688

China 322 43 365 60,331

India — 28 28 1,527

Mexico 2,694 168 2,862 106,412

International total

4,968 338 5,306 273,450

(

Walmart International unit counts, with the exception of Canada

, are as of December 31, 2022, to correspond with the balance sheet date of the related

geographic market. Canada unit counts are as of January 31, 2023.

(2)

Square feet reported in thousands.

(3)

Africa unit counts primarily reside in South Africa, with other locations in Botswana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Swaziland, and

Zambia.

(4)

Central America unit counts reside in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.

Owned and Leased Properties

The following table provides further details of our retail units and distribution facilities, including return facilities and dedicated

eCommerce fulfillment centers, as of January 31, 2023

(1)

ed Leased

(2)

Total

U.S. properties

Walmart U.S. retail units 4,057 660 4,717

Sam's Club retail units 513 87 600

Total U.S. retail units

4,570 747 5,317

Walmart U.S. distribution facilities 110 53 163

Sam's Club distribution facilities 12 17 29

Total U.S. distribution facilities

122 70 192

Total U.S. properties 4,692 817 5,509

International properties

Africa 33 342 375

Canada 124 278 402

Central America 380 502 882

Chile 205 187 392

China 2 363 365

India 2 26 28

Mexico 710 2,152 2,862

Total International retail units

1,456 3,850 5,306

International distribution facilities 23 165 188

Total International properties

1,479 4,015 5,494

Total properties 6,171 4,832 11,003

Total retail units

6,026 4,597 10,623

Total distribution facilities

145 235 380

Total properties 6,171 4,832 11,003

(1)

Walmart International properties, with the exception of Canada,

are as of December 31, 2022, to correspond with the balance sheet date of the related

geographic market. Canada unit counts are as of January 31, 2023.

(2)

Also includes U.S. and international distribution facilities which are third-party owned and operated.

own office facilities in Bentonville, Arkansas, that serve as our principal office and own and lease office facilities

throughout the U.S. and internationally for operations as well as for field and market management. The land on which our

stores are located is either owned or leased by the Company. We use independent contractors to construct our buildings. All

store leases provide for annual rentals, some of which escalate during the original lease or provide for additional rent based on

sales volume. Substantially all of the Company's store and club leases have renewal options, some of which include rent

escalation clauses. For further information on our distribution centers, see the caption "Distribution" provided for each of our

segments under "Item 1. Business

EM 3.

GAL PROCEEDINGS

. SUP

PLEMENTAL INFORMATION: We discuss certain legal proceedings in Note 10

o our Consolidated Financial

Statements included in "Item 8. Financial Statements and Supplementary Data

" whi

ch is captioned "Contingencies," under the

sub-caption "Legal Proceedings." We refer you to that discussion for important information concerning those legal

proceedings, including the basis for such actions and, where known, the relief sought. We provide the following additional

information concerning those legal proceedings, including the name of the lawsuit, the court in which the lawsuit is pending,

and the date on which the petition commencing the lawsuit was filed.

Prescription Opiate Litigation: In re National Prescription Opiate Litigation (MDL No. 2804) (the "MDL"). The MDL is

pending in the U.S. District Court for the Northern District of Ohio and includes over 2,000 cases as of March 3, 2023. The

liability phase of a single, two-county trial in one of the MDL cases against a number of parties, including the Company,

regarding opioid dispensing claims resulted in a jury verdict on November 23, 2021, finding in favor of the plaintiffs as to the

liability of all defendants, including the Company. The abatement phase of the single, two-county trial resulted in a judgment

on August 17, 2022, that ordered all three defendants, including the Company, to pay an aggregate amount of approximately

$651 million over fifteen years, on a joint and several liability basis, and granted the plaintiffs injunctive relief. The Company

has filed an appeal with the Sixth Circuit Court of Appeals. The monetary aspect of the judgment is stayed pending appeal, and

the injunctive portion of the judgment went into effect on February 20, 2023. The MDL has designated five additional single-

county cases as bellwethers to proceed through discovery. In addition, there are over 300 other cases pending in state and

federal courts throughout the country as of March 3, 2023. The case citations and currently scheduled trial dates, where

applicable, are listed on Exhibit 99.1 to this Form 10-K.

Opioid Settlement Framework: On November 15, 2022, the Company announced that it had agreed to a Settlement

Framework to resolve substantially all opioids-related lawsuits filed against the Company by states, political subdivisions, and

Native American tribes (other than the single, two-county trial on appeal to the Sixth Circuit Court of Appeals as described

above), as described in more detail in Note 10

o t

he Consolidated Financial Statements. The Company now has settlement

agreements with all 50 states, including four states that previously settled with the Company, as well as the District of

Columbia, Puerto Rico, and three other U.S. territories, that are intended to resolve substantially all opioids-related lawsuits

brought by state and local governments against the Company. The settlement will take effect if a sufficient number of political

subdivisions also join.

DOJ Opioid Civil Litigation: A civil complaint pending in the U.S. District Court for the District of Delaware has been filed

by the U.S. Department of Justice (the "DOJ") against the Company, in which the DOJ alleges violations of the Controlled

Substances Act related to nationwide distribution and dispensing of opioids. U.S. v. Walmart Inc., et al., USDC, Dist. of DE,

12/22/20. The Company filed a motion to dismiss the DOJ complaint on February 22, 2021. After the parties had fully briefed

the Company's motion to dismiss, the DOJ filed an amended complaint on October 7, 2022. On November 7, 2022, the

Company filed a partial motion to dismiss the amended complaint. The motion remains pending.

Opioids Related Securities Class Actions and Derivative Litigation: Three derivative complaints and two securities class

actions drawing heavily on the allegations of the DOJ complaint have been filed in Delaware naming the Company and various

current and former directors and certain current and former officers as defendants. The plaintiffs in the derivative suits (in

which the Company is a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties in

connection with oversight of opioids dispensing and distribution and that the defendants violated Section 14(a) of the Securities

Exchange Act of 1934, as amended (the "Exchange Act"), and are liable for contribution under Section 10(b) of the Exchange

Act in connection with the Company's disclosures about opioids. Two of the derivative suits have been filed in the U.S. District

Court in Delaware and those suits have been stayed pending further developments in other opioids litigation matters. The other

derivative suit has been filed in the Delaware Court of Chancery. The defendants in the derivative suit pending in the Delaware

Court of Chancery moved to dismiss and/or to stay that case on December 21, 2021; the plaintiffs responded by filing an

amended complaint on February 22, 2022. On April 20, 2022, the defendants moved to dismiss and/or stay proceedings on the

amended complaint. The court held a hearing on that motion on September 26, 2022; a ruling remains pending. The securities

class actions, alleging violations of Sections 10(b) and 20(a) of the Exchange Act regarding the Company's disclosures with

respect to opioids, purport to be filed on behalf of a class of investors who acquired Walmart stock from March 30, 2016,

through December 22, 2020. On May 11, 2021, the U.S. District Court in Delaware consolidated the class actions and

appointed a lead plaintiff and lead counsel. The defendants moved to dismiss the consolidated securities class action on October

8, 2021. On October 14, 2022, plaintiffs filed an amended complaint, which revised the applicable putative class of investors to

those who acquired Walmart stock from March 31, 2017, through December 22, 2020. On November 16, 2022, the Company

moved to dismiss the amended complaint. That motion remains pending.

Derivative Lawsuits: Abt v. Alvarez et al., USDC, Dist. of DE, 2/9/21; Nguyen v. McMillon et al., USDC, Dist. of DE,

4/16/21: Ontario Provincial Council of Carpenters' Pension Trust Fund et al. v. Walton et al., DE Court of Chancery, 9/27/21.

curities Class Actions: Stanton v. Walmart Inc. et al., USDC, Dist. of DE, 1/20/21 and Martin v. Walmart Inc. et al., USDC,

Dist. of DE, 3/5/21, consolidated into In re Walmart Inc. Securities Litigation, USDC, Dist. of DE, 5/11/21.

ASDA Equal Value Claims: Ms S Brierley & Others v. ASDA Stores Ltd (2406372/2008 & Others – Manchester

Employment Tribunal); Abbas & Others v Asda Stores limited (KB-2022-003243); and Abusubih & Others v Asda Stores

limited (KB-2022-003240).

Money Transfer Agent Services Litigation: Federal Trade Commission v. Walmart Inc. (CV-3372), USDC, N. Dist. Of Ill,

6/28/22.

II. CERTAIN OTHER MATTERS:

Foreign Direct Investment Matters: In July 2021, the Directorate of Enforcement in India issued a show cause notice to

Flipkart Private Limited and one of its subsidiaries ("Flipkart"), and to unrelated companies and individuals, including certain

current and former shareholders and directors of Flipkart. The notice requests the recipients to show cause as to why further

proceedings under India's Foreign Direct Investment rules and regulations (the "Rules") should not be initiated against them

based on alleged violations during the period from 2009 to 2015, prior to the Company's acquisition of a majority stake in

Flipkart in 2018. The notice is an initial stage of proceedings under the Rules which could, depending upon the conclusions at

the end of the initial stage, lead to a hearing to consider the merits of the allegations described in the notice. If a hearing is

initiated and if it is determined that violations of the Rules occurred, the regulatory authority has the authority to impose

monetary and/or non-monetary relief. Flipkart has begun the process of responding to the notice and, if the matter progresses to

a consideration of the merits of the allegations described in the notice is initiated, Flipkart intends to defend against the

allegations vigorously. Due to the fact that this process is in an early stage, the Company is unable to predict whether the notice

will lead to a hearing on the merits or, if it does, the final outcome of the resulting proceedings. While the Company does not

currently believe that this matter will have a material adverse effect on its business, financial condition, results of operations or

cash flows, the Company can provide no assurance as to the scope or outcome of any proceeding that might result from the

notice, the amount of the proceeds the Company may receive in indemnification from individuals and entities that sold shares to

the Company under the 2018 agreement pursuant to which the Company acquired its majority stake in Flipkart, and can provide

no assurance as to whether there will be a material adverse effect to its business or its consolidated financial statements.

III. ENVIRONMENTAL MATTERS: Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters

when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the

Company reasonably believes will exceed an applied threshold not to exceed $1 million.

In December 2021, the Office of the Attorney General of the State of California filed suit against the Company, bringing

enforcement claims regarding Walmart's management of waste consumer products at its California facilities that are alleged to

be hazardous. The suit was filed in Superior Court of Alameda County, California, Case No. 21CV004367, People v. Walmart

Inc., and a trial date has been scheduled for April 22, 2024. The Company believes the suit is without merit and is vigorously

defending this litigation matter. While the Company cannot predict the ultimate outcome of this matter, the potential for

penalties or settlement costs could exceed $1 million. Although the Company does not believe that this matter will have a

material adverse effect on its business, financial position, results of operations, or cash flows, the Company can provide no

assurance as to the scope and outcome of this matter and no assurance as to whether there will be a material adverse effect to its

business or its consolidated financial statements.

ITEM 4.

INE

SAFETY DISCLOSURES

applicable.

ART

EM 5.

ARK

ET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND

SSUE

R PURCHASES OF EQUITY SECURITIES

ket for Common Stock

The principal market on which Walmart's common stock is listed for trading is the New York Stock Exchange. The common

stock trades under the symbol "WMT."

Holders of Record of Common Stock

As of March 15, 2023, there were 205,465 holders of record of Walmart's common stock.

Stock Performance Chart

This graph compares the cumulative total shareholder return on Walmart's common stock during the five fiscal years ended

through fiscal 2023 to the cumulative total returns on the S&P 500 Retailing Index and the S&P 500 Index. The comparison

assumes $100 was invested on February 1, 2018 in shares of our common stock and in each of the indices shown and assumes

that all of the dividends were reinvested.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*

Among Walmart Inc., the S&P 500 Index

and S&P 500 Retailing Index

(Fiscal Years Ended January 31)

Walmart Inc. S&P 500 Index S&P 500 Retailing Index

2018 2019 2020 2021 2022 2023

$50

$100

$150

$200

$250

Assume

s $100 Invested on February 1, 2018

Assumes Dividends Reinvested

Fiscal Year ended January 31, 2023

iscal Years En

ded January 31,

2018 2019 2020 2021 2022 2023

Walmart Inc. $ 100.00 $ 92.03 $ 112.17 $ 139.96 $ 141.50 $ 147.89

S&P 500 Index 100.00 97.69 118.87 139.37 171.83 157.71

S&P 500 Retailing Index 100.00 108.42 127.45 180.19 195.77 160.10

ssue

r Repurchases of Equity Securities

From time to time, the Company repurchases shares of our common stock under share repurchase programs authorized by the

Company's Board of Directors. All repurchases made during the fiscal year prior to November 21, 2022 were made under the

plan in effect at the beginning of fiscal 2022. In November 2022, the Company approved a new $20.0 billion share repurchase

program which, beginning on November 21, 2022, replaced the previous share repurchase program. As of January 31, 2023,

authorization for $19.3 billion of share repurchases remained under the share repurchase program. Any repurchased shares are

constructively retired and returned to an unissued status.

re repurchase activity under our share repurchase programs, on a trade date basis, for each month in the quarter ended

January 31, 2023, was as follows:

iscal P

eriod

Total Number of

Shares Repurchased

Average Price Paid

per Share

(in dollars)

Total Number of

Shares Repurchased

as Part of Publicly

Announced Plans or

Programs

Approximate Dollar Value of

Shares that May Yet Be

Repurchased Under the

Plans or Programs

(1)

(in billions)

November 1-30, 2022 3,972,269 $ 144.52 3,972,269 $ 19.9

December 1-31, 2022 2,035,515 145.82 2,035,515 19.6

January 1-31, 2023 2,108,707 143.15 2,108,707 19.3

Total

8,116,491 8,116,491

(

Represents the approximate dollar value of shares that could

have been repurchased under the current plan at the end of the month. The approximate dollar

value of shares that could still have been purchased under the plan in effect at the beginning of fiscal 2022, as of November 21, 2022, when such plan was

replaced, was $1.4 billion.

ITEM 6.

SERVED

EM 7.

ANAG

EMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

ERATIONS

rview

This discussion, which presents our results for the fiscal years ended January 31, 2023 ("fiscal 2023"), January 31, 2022 ("fiscal

2022") and January 31, 2021 ("fiscal 2021"), should be read in conjunction with our Consolidated Financial Statements and the

accompanying notes. We intend for this discussion to provide the reader with information that will assist in understanding our

financial statements, the changes in certain key items in those financial statements from period to period and the primary factors

that accounted for those changes. We also discuss certain performance metrics that management uses to assess the Company's

performance. Additionally, the discussion provides information about the financial results of each of the three segments to

provide a better understanding of how each of those segments and its results of operations affect the financial position and

results of operations of the Company as a whole.

Throughout this Item 7, we discuss segment operating income, comparable store and club sales and other measures.

Management measures the results of the Company's segments using each segment's operating income, including certain

corporate overhead allocations, as well as other measures. From time to time, we revise the measurement of each segment's

operating income and other measures as determined by the information regularly reviewed by our chief operating decision

maker.

Management also measures the results of comparable store and club sales, or comparable sales, a metric that indicates the

performance of our existing stores and clubs by measuring the change in sales for such stores and clubs, for a particular period

from the corresponding period in the previous year. Walmart's definition of comparable sales includes sales from stores and

clubs open for the previous 12 months, including remodels, relocations, expansions and conversions, as well as eCommerce

sales. We measure the eCommerce sales impact by including all sales initiated digitally, including omni-channel transactions

which are fulfilled through our stores and clubs as well as certain other business offerings that are part of our flywheel strategy,

such as our Walmart Connect advertising business. Sales at a store that has changed in format are excluded from comparable

sales when the conversion of that store is accompanied by a relocation or expansion that results in a change in the store's retail

square feet of more than five percent. Sales related to divested businesses are excluded from comparable sales, and sales

related to acquisitions are excluded until such acquisitions have been owned for 12 months. Comparable sales are also referred

to as "same-store" sales by others within the retail industry. The method of calculating comparable sales varies across the retail

industry. As a result, our calculation of comparable sales is not necessarily comparable to similarly titled measures reported by

other companies.

In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the

operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of

changes in currency exchange rates as the difference between current period activity translated using the current period's

currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange

rate fluctuations are calculated for non-USD acquisitions until owned for 12 months. Throughout our discussion, we refer to

the results of this calculation as the impact of currency exchange rate fluctuations. Volatility in currency exchange rates may

impact the results, including net sales and operating income, of the Company and the Walmart International segment in the

future.

We have taken certain strategic actions to strengthen our portfolio, primarily in the Walmart International segment, including

the following highlights over the last three years:

• In November 2020, we completed the sale of Walmart Argentina and recorded a pre-tax non-cash loss in fiscal 2021 of

$1.0 billion, primarily due to cumulative foreign currency translation losses. Refer to Note 12

• I

n Fe

bruary 2021, we completed the sale of Asda for net consideration of $9.6 billion, for which we recognized an

estimated pre-tax loss in fiscal 2021 of $5.5 billion, and an incremental loss of $0.2 billion in fiscal 2022 upon closing

of the transaction. Refer to Note 11

nd Note 12

• I

n Ma

rch 2021, we completed the sale of Seiyu for net consideration of $1.2 billion, for which we recognized an

estimated pre-tax loss in fiscal 2021 of $1.9 billion, and an incremental loss of $0.2 billion in fiscal 2022 upon closing

of the transaction. Refer to Note 12

• I

n Nove

mber 2022, we completed the buyout of the noncontrolling interest shareholders of our Massmart subsidiary

(Refer to Note 3

)

nd in December 2022, we exited operations in certain countries in Africa.

• In December 2022, we increased our ownership in PhonePe as part of the separation from our majority-owned Flipkart

subsidiary. Refer to Note 3

operate in a highly competitive omni-channel retail industry in all of the markets we serve. We face strong sales

competition from other discount, department, drug, dollar, variety and specialty stores, warehouse clubs and supermarkets, as

well as eCommerce, health and wellness, financial services, advertising, and data service businesses. Many of these

competitors are national, regional or international chains or have a national or international omni-channel or eCommerce

sence. We compete with a number of companies for attracting and retaining quality associates. We, along with other retail

companies, are influenced by a number of factors including, but not limited to: catastrophic events, weather and other risks

related to climate change, global health epidemics, including the COVID-19 pandemic, competitive pressures, consumer

disposable income, consumer debt levels and buying patterns, consumer credit availability, disruptions in supply chain,

inventory management, cost and availability of goods, currency exchange rate fluctuations, customer preferences, inflation,

deflation, fuel and energy prices, general economic conditions, insurance costs, interest rates, labor availability and costs, tax

rates, the imposition of tariffs, cybersecurity attacks and unemployment. Further information on the factors that can affect our

operating results and on certain risks to our Company and an investment in its securities can be found herein under "Item 1A.

sk Factors

e are committed to helping customers save money and live better through everyday low prices, supported by everyday low

costs. However, like other retail companies, we have seen supply chain disruptions contributing to higher than

normal inventory levels throughout the year. In addition, our merchandise costs for the fiscal year ended January 31, 2023 have

been impacted by high inflation, greater than what we have experienced in recent years. The impact to our net sales and gross

profit margin is influenced in part by our pricing and merchandising strategies in response to cost increases. Those pricing

strategies include, but are not limited to: absorbing cost increases instead of passing those cost increases on to our customers

and members; reducing prices in certain merchandise categories; focusing on opening price points for certain food categories;

and when necessary, passing cost increases on to our customers and members. Merchandising strategies include, but are not

limited to: working with our suppliers to reduce product costs and share in absorbing cost increases; focusing on private label

brands and smaller pack sizes; earlier-than-usual purchasing and in greater volumes or moderating purchasing in certain

categories; and securing ocean carrier and container capacity. These strategies have and may continue to impact gross profit as

a percentage of net sales.

We expect continued uncertainty in our business and the global economy due to pressure from inflation; swings in

macroeconomic conditions and their effect on consumer confidence; volatility in employment trends; supply chain pressures;

and ongoing uncertainties related to global health epidemics or pandemics, any of which may impact our results. For a detailed

discussion on results of operations by reportable segment, refer to "Results of Operations

low.

Company Performance Metrics

We are committed to helping customers save money and live better through everyday low prices, supported by everyday low

costs. At times, we adjust our business strategies to maintain and strengthen our competitive positions in the countries in which

we operate. We define our financial framework as:

• strong, efficient growth;

• consistent operating discipline; and

• strategic capital allocation.

As we execute on this financial framework, we believe our returns on capital will improve over time.

Strong, Efficient Growth

ur obj

ective of prioritizing strong, efficient growth means we will focus on the most productive growth opportunities,

increasing comparable store and club sales through increasing membership at Sam's Club and through Walmart+, accelerating

eCommerce sales growth and expanding omni-channel initiatives that complement our flywheel strategy. At times, we make

strategic investments which are focused on the long-term growth of the Company.

Comparable sales is a metric that indicates the performance of our existing stores and clubs by measuring the change in sales

for such stores and clubs, including eCommerce sales, for a particular period over the corresponding period in the previous

year. The retail industry generally reports comparable sales using the retail calendar (also known as the 4-5-4 calendar). To be

consistent with the retail industry, we provide comparable sales using the retail calendar in our quarterly earnings releases.

However, when we discuss our comparable sales below, we are referring to our calendar comparable sales calculated using our

fiscal calendar, which may result in differences when compared to comparable sales using the retail calendar.

Calendar comparable sales, including the impact of fuel, for fiscal 2023 and 2022, were as follows:

iscal Years En

ded January 31,

2023 2022 2023 2022

With Fuel Fuel Impact

Walmart U.S. 7.0% 6.4% 0.4% 0.3%

Sam's Club 14.6% 15.0% 4.2% 5.5%

Total U.S.

8.2% 7.7% 1.0% 1.2%

Com

parable sales in the U.S., including fuel, increased 8.2% and 7.7% in fiscal 2023 and 2022, respectively, when compared to

the previous fiscal year. Walmart U.S. comparable sales increased 7.0% and 6.4% in fiscal 2023 and 2022, respectively. For

scal 2023, comparable sales growth was driven by growth in average ticket, including strong food sales and higher inflation

impacts in certain merchandise categories, as well as growth in transactions. For fiscal 2022, comparable sales growth was

driven driven by growth in average ticket and transactions, which included strong consumer spending from government

stimulus and some higher inflation impacts in certain merchandise categories compared to recent years. Walmart U.S.

eCommerce sales positively contributed approximately 0.7% to comparable sales for both fiscal 2023 and 2022 as we continue

to focus on a seamless omni-channel experience for our customers.

Comparable sales at Sam's Club increased 14.6% and 15.0% in fiscal 2023 and 2022, respectively. For fiscal 2023, Sam's Club

comparable sales benefited from growth in transactions and average ticket and included higher inflation impacts in certain

merchandise categories. Sam's Club comparable sales for fiscal 2022 benefited from growth in transactions and average ticket

and was aided by consumer spending due to government stimulus, and also included some higher inflation impacts in certain

merchandise categories compared to recent years. The growth in comparable sales was partially offset by our decision to

remove tobacco from certain club locations. Sam's Club eCommerce sales

osi

tively contributed approximately

.8% a

nd 1.3%

to comparable sales for fiscal 2023 and 2022, respectively.

Consistent Operating Discipline

operate with discipline by managing expenses, optimizing the efficiency of how we work and creating an environment in

which we have sustainable lowest cost to serve. We invest in technology and process improvements to increase productivity,

manage inventory and reduce costs. We measure operating discipline through expense leverage, which we define as net sales

growing at a faster rate than operating, selling, general and administrative ("operating") expenses.

iscal Years En

ded January 31,

(Amounts in millions, except unit counts) 2023 2022

Net sales $ 605,881 $ 567,762

Percentage change from comparable period 6.7 % 2.3 %

Operating, selling, general and administrative expenses $ 127,140 $ 117,812

Percentage change from comparable period 7.9 % 1.3 %

Operating, selling, general and administrative expenses as a percentage of net sales 21.0 % 20.8 %

or fi

scal 2023, operating expenses as a percentage of net sales increased 23 basis points when compared to the previous fiscal

year. Operating expenses as a percentage of net sales were impacted by charges of $3.3 billion related to opioid-related legal

settlements and charges of $0.8 billion related to the reorganization and restructuring of certain businesses in the Walmart

International segment. These charges were partially offset by growth in net sales and lower incremental COVID-19 costs.

For fiscal 2022, operating expenses as a percentage of net sales decreased 19 basis points when compared to the previous fiscal

year. Operating expenses as a percentage of net sales benefited from growth in comparable sales and lower incremental

COVID-19 related costs of $2.5 billion as compared to the previous year, partially offset by increased wage investments

primarily in the Walmart U.S. segment.

Strategic Capital Allocation

ur st

rategy includes improving our customer-facing initiatives in stores and clubs and creating a seamless omni-channel

experience for our customers. As such, we continue to allocate more capital to supply chain, omni-channel initiatives,

technology and store remodels and less to new store and club openings. The following table provides additional detail:

(

mounts in millions)

Fiscal Years Ended January 31,

Allocation of Capital Expenditures 2023 2022

Supply chain, customer-facing initiatives and technology $ 9,209 $ 7,197

Store and club remodels 4,990 3,278

New stores and clubs, including expansions and relocations 33 134

Total U.S.

$ 14,232 $ 10,609

Walmart International 2,625 2,497

Total capital expenditures

$ 16,857 $ 13,106

turns

s we

execute our financial framework, we believe our return on capital will improve over time. We measure return on capital

with our return on assets, return on investment and free cash flow metrics. We also provide returns in the form of share

repurchases and dividends, which are discussed in the Liquidity and Capital Resources

ction.

Return on Assets and Return on Investment

We include Return on Assets ("ROA"), the most directly comparable measure based on our financial statements presented in

accordance with generally accepted accounting principles in the U.S. ("GAAP"), and Return on Investment ("ROI") as metrics

o a

ssess returns on assets. While ROI is considered a non-GAAP financial measure, management believes ROI is a

meaningful metric to share with investors because it helps investors assess how effectively Walmart is deploying its assets.

Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts.

ROA was 4.6% and 5.6% for fiscal 2023 and 2022, respectively. The decrease in ROA was primarily due to the decrease in net

income, which was driven by lower operating income, partially offset by lapping debt extinguishment charges.ROI was 12.7%

and 14.9% for fiscal 2023 and 2022, respectively, which was primarily due to a decrease in operating income which included

charges associated with opioid-related legal settlements as well as reorganization and restructuring expenses, all recorded in

fiscal 2023.

We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent

expense) for the trailing twelve months divided by average invested capital during that period. We consider average invested

capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and average

amortization, less average accounts payable and average accrued liabilities for that period.

Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that

exclude and include amounts that are included and excluded in the most directly comparable GAAP financial measure. For

example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the

numerator of our calculation of ROI. As mentioned above, we consider ROA to be the financial measure computed in

accordance with GAAP most directly comparable to our calculation of ROI. ROI differs from ROA (which is consolidated net

income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain

expense items and adds interest income; and adjusts total assets for the impact of accumulated depreciation and amortization,

accounts payable and accrued liabilities to arrive at total invested capital. Because of the adjustments mentioned above, we

believe ROI more accurately measures how we are deploying our key assets and is more meaningful to investors than ROA.

Although ROI is a standard financial measure, numerous methods exist for calculating a company's ROI. As a result, the

method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI.

The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, the most comparable GAAP

financial measure, is as follows:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022

CALCULATION OF RETURN ON ASSETS

Numerator

Consolidated net income $ 11,292 $ 13,940

Denominator

Average total assets

(1)

$ 244,029 $ 248,678

Return on assets (ROA)

4.6 % 5.6 %

CALCULATION OF RETURN ON INVESTMENT

Numerator

Operating income $ 20,428 $ 25,942

+ Interest income 254 158

+ Depreciation and amortization 10,945 10,658

+ Rent 2,306 2,274

ROI operating income $ 33,933 $ 39,032

Denominator

Average total assets

(1)

$ 244,029 $ 248,678

+ Average accumulated depreciation and amortization

(1)

106,249 98,199

- Average accounts payable

(1)

54,502 52,201

- Average accrued liabilities

(1)

28,593 32,013

Average invested capital $ 267,183 $ 262,663

Return on investment (ROI)

12.7 % 14.9 %

(

he average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing

by 2.

s of Jan

uary 31,

2023 2022 2021

Certain Balance Sheet Data

Total assets $ 243,197 $ 244,860 $ 252,496

Accumulated depreciation and amortization 110,286 102,211 94,187

Accounts payable 53,742 55,261 49,141

Accrued liabilities 31,126 26,060 37,966

e Cash Flow

Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which

measures our ability to generate additional cash from our business operations, is an important financial measure for use in

evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute

for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our

liquidity. See "Liquidity and Capital Resources

for di

scussions of GAAP metrics including net cash provided by operating

activities, net cash used in investing activities and net cash used in financing activities.

We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment

made in that period. We had net cash provided by operating activities of $28.8 billion, $24.2 billion and $36.1 billion for fiscal

2023, 2022 and 2021, respectively. We generated free cash flow of $12.0 billion, $11.1 billion and $25.8 billion for fiscal

2023, 2022 and 2021, respectively. Net cash provided by operating activities for fiscal 2023 increased when compared to fiscal

2022. The increase is primarily due to moderated levels of inventory purchases, partially offset by a decline in operating income

and the timing of certain payments. Free cash flow for fiscal 2023 increased when compared to fiscal 2022 due to the increase

in operating cash flows described above, partially offset by an increase of $3.8 billion in capital expenditures to support our

investment strategy. Net cash provided by operating activities for fiscal 2022 decreased when compared to fiscal 2021

primarily due to an increase in inventory costs and purchases to support strong sales and lapping the impact of accelerated

inventory sell-through in fiscal 2021, as well as timing and payment of wages. Free cash flow for fiscal 2022 decreased when

compared to fiscal 2021 due to the same reasons as the decrease in net cash provided by operating activities, as well as $2.8

billion in increased capital expenditures.

Walmart's definition of free cash flow is limited in that it does not represent residual cash flows available for discretionary

expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual

obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a

measure that provides supplemental information to our Consolidated Statements of Cash Flows

though other companies report their free cash flow, numerous methods may exist for calculating a company's free cash flow.

As a result, the method used by management to calculate our free cash flow may differ from the methods used by other

companies to calculate their free cash flow.

The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by

operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as

information regarding net cash used in investing activities and net cash used in financing activities.

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Net cash provided by operating activities $ 28,841 $ 24,181 $ 36,074

Payments for property and equipment (16,857) (13,106) (10,264)

Free cash flow

$ 11,984 $ 11,075 $ 25,810

Net cash used in investing activities

(1)

$ (17,722) $ (6,015) $ (10,071)

Net cash used in financing activities (17,039) (22,828) (16,117)

(

"Net cash used in investing activities" includes payments for

property and equipment, which is also included in our computation of free cash flow.

sults of Operations

Consolidated Results of Operations

iscal Years En

ded January 31,

(Amounts in millions, except unit counts) 2023 2022 2021

Total revenues $ 611,289 $ 572,754 $ 559,151

Percentage change from comparable period 6.7 % 2.4 % 6.7 %

Net sales $ 605,881 $ 567,762 $ 555,233

Percentage change from comparable period 6.7 % 2.3 % 6.8 %

Total U.S. calendar comparable sales increase 8.2 % 7.7 % 8.7 %

Gross profit rate 23.5 % 24.4 % 24.3 %

Operating income $ 20,428 $ 25,942 $ 22,548

Operating income as a percentage of net sales 3.4 % 4.6 % 4.1 %

Loss on extinguishment of debt $ — $ 2,410 $ —

Other (gains) and losses $ 1,538 $ 3,000 $ (210)

Consolidated net income $ 11,292 $ 13,940 $ 13,706

Unit counts at period end

(1)

10,623 10,593 11,443

Retail square feet at period end

(1)

1,056 1,060 1,121

(

Unit counts and associated retail square feet are presented for stores and clubs generally open as of period end, and reflects the removal of stores in the

U.K. and Japan subsequent to closing the divestitures in fiscal 2022. Permanently closed locations are not included in these metrics.

Our total revenues, which includes net sales and membership and other income, increased $38.5 billion or 6.7% and $13.6

billion or 2.4% for fiscal 2023 and 2022, respectively, when compared to the previous fiscal year. These increases in revenues

were primarily due to increases in net sales, which increased $38.1 billion or 6.7% and $12.5 billion or 2.3% for fiscal 2023 and

2022, respectively, when compared to the previous fiscal year. For fiscal 2023, the increase was primarily due to strong

positive comparable sales for the Walmart U.S. and Sam's Club segments which was driven by growth in average ticket,

including strong food sales and higher inflation impacts in certain merchandise categories, as well as growth in transactions,

along with positive comparable sales in all of our international markets. Additionally, net sales were negatively impacted by a

decrease of $5.0 billion related to the divestiture of our operations in the U.K. and Japan, which closed in the first quarter of

fiscal 2022 and $3.7 billion of fluctuations in currency exchange rates during fiscal 2023. For fiscal 2022, the increase was

primarily due to strong positive comparable sales for the Walmart U.S. and Sam's Club which benefited from strong U.S.

consumer spending and some inflation, along with positive comparable sales in most of our remaining international markets.

The increase was partially offset by a $32.6 billion net sales decrease primarily related to the divestiture of our operations in the

U.K. and Japan, which closed in the first quarter of fiscal 2022. Net sales also benefited from a $4.5 billion positive impact of

fluctuations in currency exchange rates during fiscal 2022.

Our gross profit rate decreased 98 and increased 14 basis points for fiscal 2023 and 2022, respectively, when compared to the

previous fiscal year. For fiscal 2023, the decrease was primarily due to markdowns and merchandise mix in the U.S., higher

supply chain costs and inflation related LIFO charges in the Sam's Club segment. For fiscal 2022, the increase was primarily

due to price management in the Walmart U.S. segment driven by cost inflation as well as merchandise mix, partially offset by

increased supply chain costs.

For fiscal 2023, operating expenses as a percentage of net sales increased 23 basis points when compared to the previous fiscal

year. Operating expenses as a percentage of net sales were impacted by charges of $3.3 billion related to opioid-related legal

settlements and charges of $0.8 billion related to the reorganization and restructuring of certain businesses in the Walmart

International segment. These charges were partially offset by growth in net sales and lower incremental COVID-19 costs. For

fiscal 2022, operating expenses as a percentage of net sales decreased 19 basis points when compared to the previous fiscal

year. Operating expenses as a percentage of net sales benefited from growth in comparable sales and lower incremental

COVID-19 related costs of $2.5 billion as compared to the previous year, partially offset by increased wage investments

primarily in the Walmart U.S. segment.

Loss on extinguishment of debt was $2.4 billion in fiscal 2022 due to the early retirement of certain higher rate long-term debt

to reduce interest expense in future periods.

Other gains and losses consist of certain non-operating items, such as the change in the fair value of our investments and gains

or losses on business dispositions, which by their nature can fluctuate from period to period. Other gains and losses consisted of

a net loss of $1.5 billion and $3.0 billion for fiscal 2023 and 2022, respectively. The net loss in fiscal 2023 primarily consists

of: (a) net losses associated with the fair value changes of our equity and other investments; (b) a gain of $0.4 billion

recognized on the sale of our remaining equity method investment in Brazil; and (c) a $0.2 billion dividend from one of our

investments. The net loss in fiscal 2022 primarily consists of net losses associated with the fair value changes of our equity

investments, as well as $0.4 billion in incremental losses associated with the divestitures of our operations in the U.K. and

Japan, which closed in the first quarter of fiscal 2022.

ur e

ffective income tax rate was 33.6% for fiscal 2023, 25.4% for fiscal 2022, and 33.3% for fiscal 2021, respectively. The

increase in our effective tax rate for fiscal 2023 as compared to fiscal 2022 is primarily due to the tax impact of the business

reorganization resulting in the full separation of PhonePe from Flipkart. The decrease in our effective tax rate for fiscal 2022 as

compared to fiscal 2021 is primarily due to the $8.3 billion loss related to the divestiture of certain international operations

classified as held for sale or sold in fiscal 2021, which provided minimal realizable tax benefit. Our effective income tax rate

may also fluctuate as a result of various factors, including changes in our assessment of unrecognized tax benefits, valuation

allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items and the mix and size of earnings

among our U.S. operations and international operations, which are subject to statutory rates that are generally higher than the

U.S. statutory rate. The reconciliation from the U.S. statutory rate to the effective income tax rates for fiscal 2023, 2022 and

2021 is presented in Note 9

s a

result of the factors discussed above, we reported $11.3 billion and $13.9 billion of consolidated net income for fiscal 2023

and 2022, respectively, which represents a decrease of $2.6 billion and an increase of $0.2 billion for fiscal 2023 and 2022,

respectively, when compared to the previous fiscal year. Diluted net income per common share attributable to Walmart

("EPS") was $4.27, $4.87 and $4.75 for fiscal 2023, 2022 and 2021, respectively.

Walmart U.S. Segment

iscal Years En

ded January 31,

(Amounts in millions, except unit counts)

2023 2022 2021

Net sales $ 420,553 $ 393,247 $ 369,963

Percentage change from comparable period 6.9 % 6.3 % 8.5 %

Calendar comparable sales increase 7.0 % 6.4 % 8.7 %

Operating income $ 20,620 $ 21,587 $ 19,116

Operating income as a percentage of net sales 4.9 % 5.5 % 5.2 %

Unit counts at period end 4,717 4,742 4,743

Retail square feet at period end 702 703 703

t sales for the Walmart U.S. segment increased $27.3 billion or 6.9% and $23.3 billion or 6.3% for fiscal 2023 and 2022,

respectively, when compared to the previous fiscal year. The increases in net sales were primarily due to increases in

comparable sales of 7.0% and 6.4% for fiscal 2023 and 2022, respectively. Comparable sales in fiscal 2023 were driven by

growth in average ticket, including strong food sales and higher inflation impacts in certain merchandise categories, as well as

growth in transactions. Comparable sales in fiscal 2022 were driven by growth in average ticket and transactions, which

included strong consumer spending from government stimulus and some higher inflation impacts in certain merchandise

categories compared to recent years. Walmart U.S. eCommerce sales positively contributed approximately 0.7% to comparable

sales for both fiscal 2023 and 2022, as we continue to focus on a seamless omni-channel experience for our customers.

Gross profit rate decreased 85 basis points for fiscal 2023 and increased 51 basis points for fiscal 2022, when compared to the

respective previous fiscal year. The decrease in fiscal 2023 gross profit rate was primarily due to net markdowns and product

mix shifts into lower margin categories and increased supply chain costs, partially offset by price management impacts driven

by cost inflation. Gross profit rate for fiscal 2022 benefited from price management driven by cost inflation as well as

merchandise mix, which includes lapping the temporary closures of our Auto Care and Vision Centers and growth in our

advertising business, partially offset by increased supply chain costs.

Operating expenses as a percentage of segment net sales decreased 25 basis points for fiscal 2023 when compared to the

previous fiscal year primarily driven by strong sales growth and lower incremental COVID-19 related costs, partially offset by

increased wage costs. For fiscal 2022, operating expenses as a percentage of segment net sales increased 31 basis points

primarily due to investments in wages, partially offset by lower incremental COVID-19 related costs of $1.9 billion.

As a result of the factors discussed above, segment operating income decreased $1.0 billion and increased $2.5 billion for fiscal

2023 and 2022, respectively, when compared to the previous fiscal year.

mart International Segment

iscal Years En

ded January 31,

(Amounts in millions, except unit counts)

2023 2022 2021

Net sales $ 100,983 $ 100,959 $ 121,360

Percentage change from comparable period — % (16.8) % 1.0 %

Operating income $ 2,965 $ 3,758 $ 3,660

Operating income as a percentage of net sales 2.9 % 3.7 % 3.0 %

Unit counts at period end 5,306 5,251 6,101

Retail square feet at period end 273 277 337

t sales for the Walmart International segment were flat and decreased $20.4 billion or 16.8% for fiscal 2023 and 2022,

respectively, when compared to the previous fiscal year. For fiscal 2023, net sales benefited from positive comparable sales in

all of our international markets, offset by the impacts of a decrease of $5.0 billion related to the divestiture of our operations in

the U.K. and Japan, which closed in the first quarter of fiscal 2022, as well as $3.7 billion of fluctuations in currency exchange

rates during fiscal 2023. For fiscal 2022, the reduction in net sales was driven by a $32.6 billion decrease primarily related to

the divestitures of our operations in the U.K. and Japan, which closed during the first quarter of fiscal 2022. This decrease was

partially offset by positive comparable sales in most of our remaining markets, as well as positive fluctuations in currency

exchange rates of $4.5 billion.

Gross profit rate decreased 50 basis points and 55 basis points for fiscal 2023 and 2022, respectively, when compared to the

previous fiscal year. For fiscal 2023, the decrease was primarily driven by continued growth in lower margin formats and

channels in China and category mix shifts into lower margin categories. For fiscal 2022, the decrease was primarily driven by

shifts into lower margin formats and the impact related to our divested markets.

Operating expenses as a percentage of segment net sales increased 41 basis points and decreased 71 basis points for fiscal 2023

and 2022, respectively, when compared to the previous fiscal year. The increase in operating expenses as a percentage of

segment net sales for fiscal 2023 was primarily due to business reorganization and restructuring charges incurred related to

Flipkart and Massmart during the fourth quarter. For fiscal 2022, the decrease was primarily due to impacts from the divested

markets and $0.4 billion of lower incremental COVID-19 related costs. Operating expenses as a percentage of net sales

benefited from depreciation and amortization expense not having been recorded for our operations in the U.K. and Japan

subsequent to their held for sale classification at the end of fiscal 2021 and prior to closing during the first quarter of fiscal

2022.

As a result of the factors discussed above, segment operating income decreased $0.8 billion and increased $0.1 billion for fiscal

2023 and 2022, respectively, when compared to the previous fiscal year.

Sam's Club Segment

iscal Years En

ded January 31,

(Amounts in millions, except unit counts) 2023 2022 2021

Including Fuel

Net sales $ 84,345 $ 73,556 $ 63,910

Percentage change from comparable period 14.7 % 15.1 % 8.7 %

Calendar comparable sales increase 14.6 % 15.0 % 8.7 %

Operating income $ 1,964 $ 2,259 $ 1,906

Operating income as a percentage of net sales 2.3 % 3.1 % 3.0 %

Unit counts at period end 600 600 599

Retail square feet at period end 80 80 80

Excluding Fuel

(1)

Net sales $ 71,665 $ 64,860 $ 59,184

Percentage change from comparable period 10.5 % 9.6 % 12.1 %

Operating income $ 1,352 $ 1,923 $ 1,645

Operating income as a percentage of net sales 1.9 % 3.0 % 2.8 %

(1)

We believe the "E

xcluding Fuel" information is useful to investors because it permits investors to understand the effect of the Sam's Club segment's fuel

sales on its results of operations, which are impacted by the volatility of fuel prices. Volatility in fuel prices may continue to impact the operating results of

the Sam's Club segment in the future. Management uses such information to better measure underlying operating results in the segment.

Net sales for the Sam's Club segment increased $10.8 billion or 14.7% and $9.6 billion or 15.1% for fiscal 2023 and 2022,

respectively, when compared to the previous fiscal year. For fiscal 2023, the increase was primarily due to comparable sales

growth, including fuel, of 14.6%. Comparable sales benefited from growth in transactions and average ticket and included

higher inflation impacts in certain merchandise categories. Sam's Club eCommerce sales positively contributed approximately

0.8% t

o comparable sales which was primarily driven by ship to home and curbside pickup. For fiscal 2022, the increase was

primarily due to comparable sales growth, including fuel, of 15.0%. Comparable sales benefited from growth in transactions

and average ticket due to increased consumer spending, which was aided by government stimulus, and also includes some

gher inflation impacts in certain merchandise categories. The growth in comparable sales was partially offset by our decision

to remove tobacco from certain club locations. Sam's Club eCommerce sales positively contributed approximately 1.3% to

comparable sales.

Gross profit rate decreased 155 basis points and 68 basis points for fiscal 2023 and 2022, respectively, when compared to the

previous fiscal year. For fiscal 2023, the decrease in gross profit rate was primarily due to inventory write-downs, elevated

supply chain and eCommerce fulfillment costs and inflation related LIFO charges. For fiscal

022, gross profi

t rate decreased

primarily due to increased fuel sales which have lower margins, cost inflation, and higher supply chain costs, partially offset by

favorable sales mix, including reduced tobacco sales.

Membership and other income increased 7.0% and 13.1% for fiscal 2023 and 2022, respectively, when compared to the

previous fiscal year. For fiscal 2023 and 2022, the increase was primarily due to increases in new member sign-ups and Plus

member penetration.

Operating expenses as a percentage of segment net sales decreased 97 basis points and 82 basis points for fiscal 2023 and 2022,

respectively, when compared to the previous fiscal year. Fiscal 2023 operating expenses as a percentage of net sales decreased

primarily due to higher sales. Fiscal 2022 operating expenses as a percentage of net sales decreased primarily due to higher

sales as well as a benefit from $0.2 billion of lower incremental COVID-19 related costs, partially offset by reduced tobacco

sales.

As a result of the factors discussed above, segment operating income decreased $0.3 billion and increased $0.4 billion for fiscal

023

nd 2022, respectively, when compared to the previous fiscal year.

Liquidity and Capital Resources

Liquidity

strength and stability of our operations have historically supplied us with a significant source of liquidity. Our cash flows

provided by operating activities, supplemented with our long-term debt and short-term borrowings, have been sufficient to fund

our operations while allowing us to invest in activities that support the long-term growth of our operations. Generally, some or

all of the remaining available cash flow has been used to fund dividends on our common stock and share repurchases. We

believe our sources of liquidity will continue to be sufficient to fund operations, finance our global investment activities, pay

dividends and fund our share repurchases for at least the next 12 months and thereafter for the foreseeable future.

Net Cash Provided by Operating Activities

iscal Years En

ded January 31,

(Amounts in millions)

2023 2022 2021

Net cash provided by operating activities $ 28,841 $ 24,181 $ 36,074

t cash provided by operating activities was $28.8 billion, $24.2 billion and $36.1 billion for fiscal 2023, 2022 and 2021,

respectively. Net cash provided by operating activities for fiscal 2023 increased when compared to the previous fiscal year. The

increase is primarily due to moderated levels of inventory purchases, partially offset by a decline in operating income and the

timing of certain payments. The decrease in net cash provided by operating activities for fiscal 2022, when compared to the

previous fiscal year, was primarily due to an increase in inventory costs and purchases to support strong sales and lapping the

impact of accelerated inventory sell-through in fiscal 2021, as well as timing and payment of wages.

Cash Equivalents and Working Capital Deficit

Cash and cash equivalents were $8.6 billion and $14.8 billion as of January 31, 2023 and 2022, respectively. Our working

capital deficit, defined as total current assets less total current liabilities, was $16.5 billion and $6.3 billion as of January 31,

2023 and 2022, respectively. The increase in our working capital deficit is primarily driven by a decrease in cash and cash

equivalents and an increase in accrued liabilities. We generally operate with a working capital deficit due to our efficient use of

cash in funding operations, consistent access to the capital markets and returns provided to our shareholders in the form of

payments of cash dividends and share repurchases.

We use intercompany financing arrangements in an effort to ensure cash can be made available in the country in which it is

needed with the minimum cost possible. Additionally, from time-to-time, we repatriate earnings and related cash from

jurisdictions outside of the U.S. Historically, U.S. taxes were due upon repatriation of foreign earnings. Due to the enactment

of U.S. tax reform, repatriations of foreign earnings will generally be free of U.S. federal tax, but may incur other taxes such as

withholding or state taxes. We do not expect current local laws, other existing limitations on anticipated future repatriations of

cash amounts held outside the U.S. to have a material effect on our overall liquidity, financial position or results of operations.

As of January 31, 2023 and 2022, cash and cash equivalents of $2.9 billion and $4.3 billion, respectively, may not be freely

transferable to the U.S. due to local laws or other restrictions or are subject to the approval of the noncontrolling interest

shareholders.

t Cash Used in Investing Activities

iscal Years En

ded January 31,

(Amounts in millions)

2023 2022 2021

Net cash used in investing activities $ (17,722) $ (6,015) $ (10,071)

t cash used in investing activities was

17.7 bi

llion, $6.0 billion and $10.1 billion for fiscal 2023, 2022 and 2021,

respectively, and generally consisted of capital expenditures. Net cash used in investing activities increased

11.7 bi

llion

for

scal

023

whe

n compared to the previous fiscal year primarily due to the result of lapping the net proceeds received from the

divestitures of our operations in the U.K. and Japan and an increase in capital expenditures to support our investment strategy.

Net cash used in investing activities decreased $4.1 billion for fiscal 2022 when compared to the previous fiscal year, primarily

due to the net proceeds received from the divestitures of our operations in the U.K. and Japan, partially offset by increased

capital expenditures.

Capital expenditures

Refer to the "Strategic Capital Allocation

ction in our Company Performance Metrics

for c

apital expenditure detail for fiscal

2023 and 2022. For the fiscal year ending January 31, 2024 ("fiscal 2024"), we project capital expenditures will be

approximately $17 billion to $18 billion, with a focus on technology, supply chain, and customer-facing initiatives.

Net Cash Used in Financing Activities

iscal Years En

ded January 31,

(Amounts in millions)

2023 2022 2021

Net cash used in financing activities $ (17,039) $ (22,828) $ (16,117)

t cash from financing activities generally consists of debt transactions, dividends paid, repurchases of Company stock and

transactions with noncontrolling interest shareholders. Fiscal 2023 net cash used in financing activities decreased

5.8 bi

llion

when compared to the previous fiscal year. The decrease is primarily due to repayments of long-term debt and related payment

of premiums for the early extinguishment of certain notes in the prior fiscal period, partially offset by the equity funding from

the sale of subsidiary stock in the prior fiscal period. Fiscal 2022 net cash used in financing activities increased $6.7 billion

when compared to the previous fiscal year. The increase was primarily due to repayments of long-term debt and related

payment of premiums for the early extinguishment of certain notes, as well as increased share repurchases, partially offset by

long-term debt issuances and equity funding from the sale of subsidiary stock.

Purchase and Sale of Subsidiary Stock

In the fourth quarter of fiscal 2023, the Company completed a $0.4 billion buyout of the noncontrolling interest shareholders of

the Company's Massmart subsidiary. This transaction increased the Company's ownership of Massmart from approximately

53% to 100%. Additionally, the Company completed a $0.4 billion acquisition of Alert Innovation, which was previously

consolidated as a variable interest entity and resulted in the Company becoming a 100% owner.

During fiscal 2022, the Company received $3.2 billion primarily related to a new equity funding for the Company's majority-

owned Flipkart subsidiary, which reduced the Company's ownership from approximately 83% as of January 31, 2021 to

approximately 75%.

Short-term Borrowings

We generally utilize the liquidity provided by short-term borrowings to provide funding for our operations, dividend payments,

share repurchases, capital expenditures and other cash requirements. The following table includes additional information related

to the Company's short-term borrowings for fiscal 2023, 2022 and 2021:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Maximum amount outstanding at any month-end $ 11,432 $ 716 $ 4,048

Average daily short-term borrowings 7,250 626 1,577

Annual weighted-average interest rate 2.4 % 3.7 % 3.1 %

hort

-term borrowings as of January 31, 2023 and 2022 were $0.4 billion, with weighted-average interest rates of 6.6% and

2.9%, respectively. We also have $15.0 billion of various undrawn committed lines of credit in the U.S. as of January 31, 2023

that provide additional liquidity, if needed. Additionally, we maintain access to various credit facilities outside of the U.S. to

further support our Walmart International segment operations, as needed.

As of January 31, 2023, we have $2.1 billion of syndicated and fronted letters of credit available, of which $1.8 billion was

drawn and represents an unrecorded current obligation.

ong-t

erm Debt

The following table provides the changes in our long-term debt for fiscal 2023:

(

mounts in millions)

Long-term debt due

within one year Long-term debt Total

Balances as of February 1, 2022

$ 2,803 $ 34,864 $ 37,667

Proceeds from issuance of long-term debt — 5,041 5,041

Repayments of long-term debt (2,689) — (2,689)

Reclassifications of long-term debt 4,197 (4,197) —

Currency and other adjustments

(120)

(1,059) (1,179)

Balances as of January 31, 2023

$ 4,191 $ 34,649 $ 38,840

ur t

otal outstanding long-term debt increased $1.2 billion during fiscal 2023, primarily due to the issuance of new long-term

debt in September 2022, partially offset by the maturities of certain long-term debt. Refer to Note 6

o our Consolidated

Financial Statements for details on the issuances of long-term debt.

Estimated contractual interest payments associated with our long-term debt amount to $18.8 billion, with approximately $1.7

billion expected to be paid in fiscal 2024. Estimated interest payments are based on our principal amounts and expected

maturities of all debt outstanding as of January 31, 2023 and assumes interest rates remain at current levels for our variable rate

instruments.

Dividends

Our total dividend payments were

6.1 bi

llion, $6.2 billion and $6.1 billion for fiscal 2023, 2022 and 2021, respectively.

Effective February 21, 2023, the Company approved the fiscal 2024 annual dividend of $2.28 per share, an increase over the

fiscal 2023 annual dividend of $2.24 per share. For fiscal 2024, the annual dividend will be paid in four quarterly installments

of $0.57 per share, according to the following record and payable dates:

ecord

Date Payable Date

March 17, 2023 April 3, 2023

May 5, 2023 May 30, 2023

August 11, 2023 September 5, 2023

December 8, 2023 January 2, 2024

ompany

Share Repurchase Program

From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the

Company's Board of Directors. All repurchases made during the fiscal year prior to November 21, 2022 were made under the

plan in effect at the beginning of fiscal 2022. In November 2022, the Company approved a new $20.0 billion share repurchase

program which, beginning on November 21, 2022, replaced the previous share repurchase program. As of January 31, 2023,

authorization for $

9.3 bi

llion of share repurchases remained under the share repurchase program. Any repurchased shares are

constructively retired and returned to an unissued status.

We regularly review share repurchase activity and consider several factors in determining when to execute share repurchases,

including, among other things, current cash needs, capacity for leverage, cost of borrowings, our results of operations and the

market price of our common stock. We anticipate that a majority of the ongoing share repurchase program will be funded

through the Company's free cash flow.

The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and

total amount paid for share repurchases for fiscal 2023, 2022 and 2021:

iscal Years En

ded January 31,

(Amounts in millions, except per share data) 2023 2022 2021

Total number of shares repurchased 73.9 69.7 19.4

Average price paid per share $ 134.17 $ 140.45 $ 135.20

Total amount paid for share repurchases $ 9,920 $ 9,787 $ 2,625

erial Cash Requirements

Material cash requirements from operating activities primarily consist of inventory purchases, employee related costs, taxes,

interest and other general operating expenses, which we expect to be primarily satisfied by our cash from operations. Other

material cash requirements from known contractual and other obligations include opioid and other legal settlements, short-term

borrowings, long-term debt and related interest payments, leases, purchases of subsidiary stock and purchase obligations. See

Note 3

Note 6

nd Note 7

o our Consolidated Financial Statements for information regarding purchase of subsidiary stock,

outstanding short-term borrowings and long-term debt, and leases, respectively.

s of Ja

nuary 31, 2023, the Company has $33.3 billion of unrecorded purchase obligations outstanding, of which $11.6 billion

is due within one year. Purchase obligations include legally binding contracts, such as firm commitments for inventory and

utility purchases, as well as commitments to make capital expenditures, software acquisition and license commitments and

legally binding service contracts. Contractual obligations for the purchase of goods or services are defined as agreements that

are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be

purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Contracts that specify

the Company will purchase all or a portion of its requirements of a specific product or service from a supplier, but do not

include a fixed or minimum quantity, are excluded from the obligations quantified above. Accordingly, purchase orders for

inventory are also excluded as purchase orders represent authorizations to purchase rather than binding agreements. Our

purchase orders are based on our current inventory needs and are fulfilled by our suppliers within short time periods. We also

enter into contracts for outsourced services; however, the obligations under these contracts are not significant and the contracts

generally contain clauses allowing for cancellation without significant penalty. Timing of payments and actual amounts paid

may be different depending on the timing of receipt of goods or services or changes to agreed-upon amounts for some

obligations.

Capital Resources

believe our cash flows from operations, current cash position, short-term borrowings and access to capital markets will

continue to be sufficient to meet our anticipated cash requirements and contractual obligations, which includes funding seasonal

buildups in merchandise inventories and funding our capital expenditures, acquisitions, dividend payments and share

repurchases.

We have strong commercial paper and long-term debt ratings that have enabled and should continue to enable us to refinance

our debt as it becomes due at favorable rates in capital markets. As of January 31, 2023, the ratings assigned to our commercial

paper and rated series of our outstanding long-term debt were as follows:

atin

g agency Commercial paper Long-term debt

Standard & Poor's A-1+ AA

Moody's Investors Service P-1 Aa2

Fitch Ratings F1+ AA

dit rating agencies review their ratings periodically and, therefore, the credit ratings assigned to us by each agency may be

subject to revision at any time. Accordingly, we are not able to predict whether our current credit ratings will remain consistent

over time. Factors that could affect our credit ratings include changes in our operating performance, the general economic

environment, conditions in the retail industry, our financial position, including our total debt and capitalization, and changes in

our business strategy. Any downgrade of our credit ratings by a credit rating agency could increase our future borrowing costs

or impair our ability to access capital and credit markets on terms commercially acceptable to us. In addition, any downgrade

of our current short-term credit ratings could impair our ability to access the commercial paper markets with the same flexibility

that we have experienced historically, potentially requiring us to rely more heavily on more expensive types of debt financing.

The credit rating agency ratings are not recommendations to buy, sell or hold our commercial paper or debt securities. Each

rating may be subject to revision or withdrawal at any time by the assigning rating organization and should be evaluated

independently of any other rating. Moreover, each credit rating is specific to the security to which it applies.

the

r Matters

In Note 10

o our Consolidated Financial Statements, which is captioned "Contingencies" and appears in Part II

of t

his Annual

Report on Form 10-K under the caption "Item 8. Financial Statements and Supplementary Data

" we

discuss, under the sub-

captions "Settlement Framework Regarding Multidistrict and State or Local Opioid Related Litigation," and "Other Opioid

Related Litigation" the Prescription Opiate Litigation, the Settlement Framework, and other matters, including certain risks

arising therefrom. In that Note 10

also discuss under the sub-caption "Asda Equal Value Claims" the Company's

indemnification obligation for the Asda Equal Value Claims matter as well as under the sub-caption "Money Transfer Agent

Services Matters", a United States Federal Trade Commission complaint related to money transfers and the Company's anti-

fraud program and a government investigation by the U.S. Attorney's Office for the Middle District of Pennsylvania into the

Company's consumer fraud prevention and anti-money laundering compliance related to the Company's money transfer agent

services. We discuss various legal proceedings related to the Federal and State Prescription Opiate Litigation, the Settlement

Framework, DOJ Opioid Civil Litigation and Opioids Related Securities Class Actions and Derivative Litigation in Part I

his Annual Report on Form 10-K under the caption "Item 3. Legal Proceedings

" unde

r the sub-caption "I. Supplemental

Information." We also discuss items related to the Asda Equal Value Claims matter, the Money Transfer Agent Services

Matters and the Foreign Direct Investment matters in Part I

of t

his Annual Report on Form 10-K under the caption "Item 3.

gal Proceedings

" unde

r the sub-caption "II. Certain Other Matters." We also discuss an environmental matter with the State

of California in Part I

of t

his Annual Report on Form 10-K under the caption "Item 3. Legal Proceedings

" unde

r the sub-

caption "III. Environmental Matters." The foregoing matters and other matters described elsewhere in this Annual Report on

Form 10-K represent contingent liabilities of the Company that may or may not result in the incurrence of a material liability by

the Company upon their final resolution.

Summary of Critical Accounting Estimates

Management strives to report our financial results in a clear and understandable manner, although in some cases accounting and

disclosure rules are complex and require us to use technical terminology. In preparing the Company's Consolidated Financial

Statements, we follow accounting principles generally accepted in the U.S. These principles require us to make certain

estimates and apply judgments that affect our financial position and results of operations as reflected in our financial statements.

These judgments and estimates are based on past events and expectations of future outcomes. Actual results may differ from

our estimates.

Management continually reviews our accounting policies including how they are applied and how they are reported and

disclosed in our financial statements. Following is a summary of our critical accounting estimates and how they are applied in

preparation of the financial statements.

Inventories

The Walmart U.S. segment comprises the largest portion of our inventory and is primarily accounted for under the retail

inventory method of accounting to determine inventory cost, using the last-in, first-out ("LIFO") valuation method. The

majority of the Sam's Club segment inventories are accounted for and valued using the weighted-average cost LIFO method.

When necessary, we record a LIFO provision for the estimated annual effect of inflation, and these estimates are adjusted to

actual results determined at year-end. As a measure of sensitivity, an incremental 1% inflationary impact to the cost of our

inventory purchases would not have resulted in a material increase to the LIFO provision recorded during fiscal 2023.

Indefinite-Lived Intangible Assets

Intangible assets acquired in a business combination are stated at the fair value acquired as determined by a valuation technique

commensurate with the intended use of the related asset. Significant estimates in valuing certain intangible assets include, but

are not limited to, the amount and timing of future cash flows, growth rates, discount rates and useful lives. Indefinite-lived

acquired intangible assets are not amortized but are evaluated for impairment annually and whenever events or changes in

circumstances indicate that the value of the asset may be impaired. Generally, this evaluation begins with a qualitative

assessment to determine whether a quantitative impairment test is necessary. If we determine, after performing an assessment

based on qualitative factors, that the fair value of the indefinite-lived acquired intangible asset is more likely than not less than

the carrying amount, then a quantitative impairment test would be performed. The quantitative test for impairment requires

management to make judgments relating to future cash flows, growth rates and economic and market conditions. Our

indefinite-lived acquired intangible assets have historically generated sufficient returns to recover their cost. Because of the

nature of the factors used in these tests, if different conditions occur in future periods, future operating results could be

materially impacted.

Contingencies

We are involved in a number of legal proceedings and certain regulatory matters. We record a liability when it is probable that a

loss has been incurred and the amount is reasonably estimable. We also perform an assessment of the materiality of loss

contingencies where a loss is either reasonably possible or it is reasonably possible that a loss could be incurred in excess of

ounts accrued. If a loss or an additional loss has at least a reasonable possibility of occurring and the impact on the financial

statements would be material, we provide disclosure of the loss contingency in the footnotes to our financial statements. We

review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a

reasonable estimate of the loss or the range of the loss can be made. Although we are not able to predict the outcome or

reasonably estimate a range of possible losses in certain matters described in Note 10

o our Consolidated Financial Statements

and have not recorded an associated accrual related to these matters, an adverse judgment or negotiated resolution in any of

these matters could have a material adverse effect on our business, reputation, financial position, results of operations or cash

flows.

Income Taxes

Income taxes have a significant effect on our net earnings. We are subject to income taxes in the U.S. and numerous foreign

jurisdictions. Accordingly, the determination of our provision for income taxes requires judgment, the use of estimates in

certain cases and the interpretation and application of complex tax laws. Our effective income tax rate is affected by many

factors, including changes in our assessment of unrecognized tax benefits, increases and decreases in valuation allowances,

changes in tax law, outcomes of administrative audits, the impact of discrete items and the mix of earnings among our U.S. and

international operations where the statutory rates are generally higher than the U.S. statutory rate, and may fluctuate as a result.

Our tax returns are routinely audited and settlements of issues raised in these audits sometimes affect our tax provisions. The

benefits of uncertain tax positions are recorded in our financial statements only after determining a more likely than not

probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and

circumstances change, we reassess these probabilities and record any changes in the financial statements as appropriate. We

account for uncertain tax positions by determining the minimum recognition threshold that a tax position is required to meet

before being recognized in the financial statements. This determination requires the use of judgment in evaluating our tax

positions and assessing the timing and amounts of deductible and taxable items.

Deferred tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets

arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net

operating loss and tax credit carryforwards. Deferred tax assets are evaluated for future realization and reduced by a valuation

allowance to the extent that a portion is not more likely than not to be realized. Many factors are considered when assessing

whether it is more likely than not that the deferred tax assets will be realized, including recent cumulative earnings, expectations

of future taxable income, carryforward periods and other relevant quantitative and qualitative factors. The recoverability of the

deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal

of taxable temporary differences, forecasted operating earnings and available tax planning strategies. This evaluation relies on

estimates.

As guidance is issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, any resulting changes to our

estimates will be treated in accordance with the relevant accounting guidance.

ITEM 7A.

UANT

ITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ket Risk

In addition to the risks inherent in our operations, we are exposed to certain market risks, including changes in interest rates,

currency exchange rates and the fair values of certain equity and equity method investments measured on a recurring basis.

The analysis presented below for each of our market risk sensitive instruments is based on a hypothetical scenario used to

calibrate potential risk and does not represent our view of future market changes. The effect of a change in a particular

assumption is calculated without adjusting any other assumption. In reality, however, a change in one factor could cause a

change in another, which may magnify or negate other sensitivities.

Interest Rate Risk

We are exposed to changes in interest rates as a result of our short-term borrowings and long-term debt. We hedge a portion of

our interest rate risk by managing the mix of fixed and variable rate debt and by entering into interest rate swaps. For fiscal

2023, the net fair value of our interest rate swaps decreased $0.6 billion primarily due to fluctuations in market interest rates.

The table below provides information about our financial instruments that are sensitive to changes in interest rates. For long-

term debt, the table represents the principal cash flows and related weighted-average interest rates by expected maturity dates.

For interest rate swaps, the table represents the contractual cash flows and weighted-average interest rates by the contractual

maturity date, unless otherwise noted. The notional amounts are used to calculate contractual cash flows to be exchanged under

the contracts. The weighted-average variable rates are based upon prevailing market rates as of January 31, 2023.

ected Maturity Date

(Amounts in millions) Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Fiscal 2028 Thereafter Total

Liabilities

Short-term borrowings:

Variable rate $ 372 $ — $ — $ — $ — $ — $ 372

Weighted-average interest rate 6.6 % — % — % — % — % — % 6.6 %

Long-term debt

(1)

Fixed rate $ 4,191 $ 3,516 $ 2,604 $ 2,737 $ 1,817 $ 23,975 $ 38,840

Weighted-average interest rate 3.2 % 2.9 % 3.8 % 2.0 % 3.5 % 4.3 % 3.8 %

Interest rate derivatives

Interest rate swaps:

Fixed to variable $ 1,750 $ 1,500 $ — $ — $ — $ 4,771 $ 8,021

Weighted-average pay rate 5.2 % 5.9 % — % — % — % 5.8 % 5.7 %

Weighted-average receive rate 2.6 % 3.3 % — % — % — % 2.5 % 2.7 %

(

Includes deferred loan costs, discounts, fair value hedges, for

eign-held debt and secured debt.

As of January 31, 2023, our variable rate borrowings, including the effect of our commercial paper and interest rate swaps,

represented 21% of our total short-term and long-term debt. Based on January 31, 2023 debt levels, a 100 basis point change in

prevailing market rates would cause our annual interest costs to change by approximately $0.1 billion.

Foreign Currency Risk

We are exposed to fluctuations in currency exchange rates as a result of our investments and operations in countries other than

the U.S., as well as our foreign-currency-denominated long-term debt. For fiscal 2023, movements in currency exchange rates

and the related impact on the translation of the balance sheets resulted in the $1.1 billion net loss in the currency translation and

other category of accumulated other comprehensive loss.

We hedge a portion of our foreign currency risk by entering into currency swaps. The aggregate fair value of these swaps was

in a liability position of $1.4 billion and $1.0 billion as of January 31, 2023 and January 31, 2022, respectively. The change in

the fair value of these swaps was due to fluctuations in currency exchange rates, primarily due to the strengthening of the U.S.

dollar relative to certain currencies in fiscal 2023. The hypothetical result of a uniform 10% weakening in the value of the U.S.

dollar relative to other currencies underlying these swaps would have resulted in a change in the value of the swaps of $0.7

billion. A hypothetical 10% change in interest rates underlying these swaps from the market rates in effect as of January 31,

2023 would have resulted in a change in the value of the swaps of $0.1 billion.

In certain countries, we also enter into immaterial foreign currency forward contracts to hedge the purchase and payment of

purchase commitments denominated in non-functional currencies.

Investment Risk

We are exposed to investment risk primarily related to changes in the fair value of equity securities, as well as certain

immaterial equity method investments where we have elected the fair value option measured on a recurring basis. These

changes in fair value are recorded within other gains and losses and resulted in a loss of $1.7 billion in fiscal 2023 primarily due

to net decreases in the underlying stock prices of those investments. As of January 31, 2023, the fair value of our equity

investments, including certain equity method investments, measured on a recurring basis was $10.7 billion. As of January 31,

2023, a hypothetical 10% change in the stock price of such investments would have changed the fair value of such investments

by approximately $1.1 billion.

EM 8.

INANCIAL

STATEMENTS AND SUPPLEMENTARY DATA

onsol

idated Financial Statements of Walmart Inc.

For the Fiscal Year Ended January 31, 2023

Table of Contents

age

eport of Independent Registered Public Accounting Firm (PCAOB ID: 42) 51

Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting 53

Consolidated Statements of Income 54

Consolidated Statements of Comprehensive Income 55

Consolidated Balance Sheets 56

Consolidated Statements of Shareholders' Equity 57

Consolidated Statements of Cash Flows 58

Notes to Consolidated Financial Statements 59

port of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Walmart Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Walmart Inc. (the Company) as of January 31, 2023 and

2022, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the

three years in the period ended January 31, 2023, and the related notes (collectively referred to as the "Consolidated Financial

Statements"). In our opinion, the Consolidated Financial Statements present fairly, in all material respects, the financial

position of the Company at January 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three

years in the period ended January 31, 2023, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)

(PCAOB), the Company's internal control over financial reporting as of January 31, 2023, based on criteria established in

Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission

(2013 framework) and our report dated March 17, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on

the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are

required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable

rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to

error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial

statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included

examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included

evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall

presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that

was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that

are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The

communication of the critical audit matter does not alter in any way our opinion on the Consolidated Financial Statements,

taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical

audit matter or on the account or disclosure to which it relates.

Contingencies

Description of

the Matter

As described in Note 10 to the Consolidated Financial Statements, at January 31, 2023, the Company is

involved in a number of legal proceedings and regulatory matters. The Company records a liability for

those legal proceedings and regulatory matters when management determines it is probable that a loss

has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses

when it is reasonably possible that a material loss may be incurred. In assessing the probability of

occurrence and whether an estimate of loss can be reasonably estimated for a particular legal proceeding,

management exercises judgment on matters relevant to each proceeding, such as whether sufficient

participation in settlement proceedings will occur, or whether it can predict the number of claims that

may be filed. For example, management exercised judgment in accruing a liability for approximately

$3.3 billion for the Settlement Framework and other previously agreed state and tribal settlements

regarding opioid-related lawsuits. Auditing management's accounting for, and disclosure of, loss

contingencies was complex and highly judgmental as it involved our assessment of the significant

judgments made by management when assessing the probability of occurrence for contingencies or when

determining whether an estimate of the loss or range of loss could be made.

ow W

Addressed the

Matter in Our

Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls

over the identification and evaluation of contingencies. For example, we tested controls over the

Company's assessment of the likelihood of loss and the Company's determinations regarding the

measurement of loss.

To test the Company's assessment of the probability of occurrence or determination of an estimate of

loss, or range of loss, among other procedures, we read the minutes of the meetings of the board of

directors and committees of the board of directors, reviewed documents provided to the Company by

certain outside legal counsel, read letters received directly by us from internal and outside legal counsel,

and evaluated the current status of contingencies based on discussions with internal and outside legal

counsel. As part of this assessment, we evaluated management's assumptions and calculations by, among

other things, comparing those assumptions to key terms in the Settlement Framework and to payments

made during the year. We also assessed the adequacy of the related disclosures.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1969.

Rogers, Arkansas

March 17, 2023

port of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Walmart Inc.

Opinion on Internal Control over Financial Reporting

We have audited Walmart Inc.'s internal control over financial reporting as of January 31, 2023, based on criteria established in

Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission

(2013 framework) (the COSO criteria). In our opinion, Walmart Inc. (the Company) maintained, in all material respects,

effective internal control over financial reporting as of January 31, 2023, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)

(PCAOB), the consolidated balance sheets of Walmart Inc. as of January 31, 2023 and 2022, the related consolidated statements

of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended

January 31, 2023, and the related notes and our report dated March 17, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its

assessment of the effectiveness of internal control over financial reporting included in the accompanying Report on Internal

Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial

reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent

with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the

Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all

material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material

weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and

performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a

reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally

accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures

that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit

preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and

expenditures of the company are being made only in accordance with authorizations of management and directors of the

company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or

disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,

projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate

because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Rogers, Arkansas

March 17, 2023

mart Inc.

Consolidated Statements of Income

iscal Years En

ded January 31,

(Amounts in millions, except per share data) 2023 2022 2021

Revenues:

Net sales $ 605,881 $ 567,762 $ 555,233

Membership and other income 5,408 4,992 3,918

Total revenues 611,289 572,754 559,151

Costs and expenses:

Cost of sales

463,721 429,000 420,315

Operating, selling, general and administrative expenses

127,140 117,812 116,288

Operating income

20,428 25,942 22,548

Interest:

Debt

1,787 1,674 1,976

Finance lease

341 320 339

Interest income

(254) (158) (121)

Interest, net

1,874 1,836 2,194

Loss on extinguishment of debt

— 2,410 —

Other (gains) and losses

1,538 3,000 (210)

Income before income taxes

17,016 18,696 20,564

Provision for income taxes

5,724 4,756 6,858

Consolidated net income

11,292 13,940 13,706

Consolidated net (income) loss attributable to noncontrolling interest

388 (267) (196)

Consolidated net income attributable to Walmart

$ 11,680 $ 13,673 $ 13,510

Net income per common share:

Basic net income per common share attributable to Walmart $ 4.29 $ 4.90 $ 4.77

Diluted net income per common share attributable to Walmart 4.27 4.87 4.75

Weighted-average common shares outstanding:

Basic

2,724 2,792 2,831

Diluted

2,734 2,805 2,847

Dividends declared per common share

$ 2.24 $ 2.20 $ 2.16

ee accompanying notes.

mart Inc.

Consolidated Statements of Comprehensive Income

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Consolidated net income

$ 11,292 $ 13,940 $ 13,706

Consolidated net (income) loss attributable to noncontrolling interest 388 (267) (196)

Consolidated net income attributable to Walmart

11,680 13,673 13,510

Other comprehensive income (loss), net of income taxes

Currency translation and other (1,858) 2,442 842

Net investment hedges — (1,202) (221)

Cash flow hedges (203) (444) 235

Minimum pension liability 5 1,974 (30)

Other comprehensive income (loss), net of income taxes (2,056) 2,770 826

Other comprehensive loss attributable to noncontrolling interest 404 230 213

Other comprehensive income (loss) attributable to Walmart

(1,652) 3,000 1,039

Comprehensive income, net of income taxes 9,236 16,710 14,532

Comprehensive (income) loss attributable to noncontrolling interest

792 (37) 17

Comprehensive income attributable to Walmart

$ 10,028 $ 16,673 $ 14,549

See accompanying notes.

mart Inc.

Consolidated Balance Sheets

s of Jan

uary 31,

(Amounts in millions) 2023 2022

ASSETS

Current assets:

Cash and cash equivalents $ 8,625 $ 14,760

Receivables, net 7,933 8,280

Inventories 56,576 56,511

Prepaid expenses and other 2,521 1,519

Total current assets 75,655 81,070

Property and equipment, net 100,760 94,515

Operating lease right-of-use assets 13,555 13,758

Finance lease right-of-use assets, net 4,919 4,351

Goodwill 28,174 29,014

Other long-term assets

20,134 22,152

Total assets

$ 243,197 $ 244,860

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY

Current liabilities:

Short-term borrowings $ 372 $ 410

Accounts payable 53,742 55,261

Accrued liabilities 31,126 26,060

Accrued income taxes 727 851

Long-term debt due within one year 4,191 2,803

Operating lease obligations due within one year 1,473 1,483

Finance lease obligations due within one year 567 511

Total current liabilities 92,198 87,379

Long-term debt 34,649 34,864

Long-term operating lease obligations 12,828 13,009

Long-term finance lease obligations 4,843 4,243

Deferred income taxes and other 14,688 13,474

Commitments and contingencies

Redeemable noncontrolling interest 237 —

Equity:

Common stock 269 276

Capital in excess of par value 4,969 4,839

Retained earnings 83,135 86,904

Accumulated other comprehensive loss (11,680) (8,766)

Total Walmart shareholders' equity 76,693 83,253

Noncontrolling interest 7,061 8,638

Total equity 83,754 91,891

Total liabilities, redeemable noncontrolling interest, and equity

$ 243,197 $ 244,860

See accompanying notes.

mart Inc.

Consolidated Statements of Shareholders' Equity

ccu

mulated Total

Capital in Other Walmart

(Amounts in millions)

Common Stock Excess of Retained Comprehensive Shareholders' Noncontrolling Total

Shares Amount Par Value Earnings Income (Loss) Equity Interest Equity

Balances as of February 1,

2020

2,832 $ 284 $ 3,247 $ 83,943 $ (12,805) $ 74,669 $ 6,883 $ 81,552

Consolidated net income — — — 13,510 — 13,510 196 13,706

Other comprehensive income

(loss), net of income taxes

— — — — 1,039 1,039 (213) 826

Cash dividends declared

($2.16 per share)

— — — (6,116) — (6,116) — (6,116)

Purchase of Company stock (20) (2) (97) (2,559) — (2,658) — (2,658)

Cash dividend declared to

noncontrolling interest

— — — — — — (365) (365)

Sale of subsidiary stock — — 29 — — 29 111 140

Other 9 — 467 (15) — 452 (6) 446

Balances as of January 31,

2021

2,821 282 3,646 88,763 (11,766) 80,925 6,606 87,531

Consolidated net income — — — 13,673 — 13,673 267 13,940

Other comprehensive income

(loss), net of income taxes

— — — — 3,000 3,000 (230) 2,770

Cash dividends declared

($2.20 per share)

— — — (6,152) — (6,152) — (6,152)

Purchase of Company stock (70) (7) (426) (9,375) — (9,808) — (9,808)

Cash dividend declared to

noncontrolling interest

— — — — — — (416) (416)

Sale of subsidiary stock — — 952 — — 952 2,287 3,239

Other 10 1 667 (5) — 663 124 787

Balances as of January 31,

2022

2,761 276 4,839 86,904 (8,766) 83,253 8,638 91,891

Consolidated net income — — — 11,680 — 11,680 (388) 11,292

Other comprehensive loss,

net of income taxes

— — — — (1,652) (1,652) (404) (2,056)

Cash dividends declared

($2.24 per share)

— — — (6,114) — (6,114) — (6,114)

Purchase of Company stock (74) (7) (533) (9,326) — (9,866) — (9,866)

Cash dividend declared to

noncontrolling interest

— — — — — — (449) (449)

Purchase of noncontrolling

interest

— — (18) — (1,262) (1,280) (493) (1,773)

Sale of subsidiary stock — — 48 — — 48 18 66

Other 6 — 633 (9) — 624 139 763

Balances as of January 31,

2023

2,693 269 4,969 83,135 (11,680) 76,693 7,061 83,754

See accompanying notes.

mart Inc.

Consolidated Statements of Cash Flows

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Cash flows from operating activities:

Consolidated net income $ 11,292 $ 13,940 $ 13,706

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation and amortization 10,945 10,658 11,152

Net unrealized and realized (gains) and losses 1,683 2,440 (8,589)

Losses on disposal of business operations — 433 8,401

Deferred income taxes 449 (755) 1,911

Loss on extinguishment of debt — 2,410 —

Other operating activities 1,919 1,652 1,521

Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:

Receivables, net 240 (1,796) (1,086)

Inventories (528) (11,764) (2,395)

Accounts payable (1,425) 5,520 6,966

Accrued liabilities 4,393 1,404 4,623

Accrued income taxes (127) 39 (136)

Net cash provided by operating activities 28,841 24,181 36,074

Cash flows from investing activities:

Payments for property and equipment (16,857) (13,106) (10,264)

Proceeds from the disposal of property and equipment 170 394 215

Proceeds from disposal of certain operations, net of divested cash — 7,935 56

Payments for business acquisitions, net of cash acquired (740) (359) (180)

Other investing activities (295) (879) 102

Net cash used in investing activities (17,722) (6,015) (10,071)

Cash flows from financing activities:

Net change in short-term borrowings (34) 193 (324)

Proceeds from issuance of long-term debt 5,041 6,945 —

Repayments of long-term debt (2,689) (13,010) (5,382)

Premiums paid to extinguish debt — (2,317) —

Dividends paid (6,114) (6,152) (6,116)

Purchase of Company stock (9,920) (9,787) (2,625)

Dividends paid to noncontrolling interest (444) (424) (434)

Purchase of noncontrolling interest (827) — —

Sale of subsidiary stock 66 3,239 140

Other financing activities (2,118) (1,515) (1,376)

Net cash used in financing activities (17,039) (22,828) (16,117)

Effect of exchange rates on cash, cash equivalents and restricted cash (73) (140) 235

Net increase (decrease) in cash, cash equivalents and restricted cash (5,993) (4,802) 10,121

Change in cash and cash equivalents reclassified from (to) assets held for sale — 1,848 (1,848)

Cash, cash equivalents and restricted cash at beginning of year 14,834 17,788 9,515

Cash, cash equivalents and restricted cash at end of year $ 8,841 $ 14,834 $ 17,788

Supplemental disclosure of cash flow information:

Income taxes paid $ 3,310 $ 5,918 $ 5,271

Interest paid 2,051 2,237 2,216

See accompanying notes.

mart Inc.

Notes to Consolidated Financial Statements

Note 1. Summary of Significant Accounting Policies

General

Walmart Inc. ("Walmart" or the "Company") people-led, technology-powered omni-channel retailer dedicated to help people

around the world save money and live better – anytime and anywhere – by providing the opportunity to shop in both retail

stores and through eCommerce. Through innovation, the Company is striving to continuously improve a customer-centric

experience that seamlessly integrates eCommerce and retail stores in an omni-channel offering that saves time for its customers.

The Company's operations comprise three reportable segments: Walmart U.S., Walmart International and Sam's Club.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Walmart and its subsidiaries as of and for the fiscal years ended

January 31, 2023 ("fiscal 2023"), January 31, 2022 ("fiscal 2022") and January 31, 2021 ("fiscal 2021"). Intercompany

accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it

has been determined that the Company is the primary beneficiary of those entities' operations. Investments in common stock or

in-substance common stock for which the Company exercises significant influence but does not have control are accounted for

under the equity method. These variable interest entities and equity method investments are immaterial to the Company's

Consolidated Financial Statements.

The Company's Consolidated Financial Statements are based on a fiscal year ending on January 31 for the United States

("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based

on a calendar year. There were no significant intervening events during the month of January 2023 related to the operations

consolidated using a lag that materially affected the Consolidated Financial Statements.

Use of Estimates

The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles.

Those principles require management to make estimates and assumptions that affect the reported amounts of assets and

liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of

the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may

differ from those estimates.

Cash and Cash Equivalents

The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. All credit

card, debit card and electronic transfer transactions that process in less than seven days are classified as cash and cash

equivalents. The amounts due from banks for these transactions classified as cash and cash equivalents totaled $2.0 billion and

$1.7 billion as of January 31, 2023 and 2022, respectively.

The Company's cash balances are held in various locations around the world. Of the Company's $8.6 billion and $14.8 billion

in cash and cash equivalents as of January 31, 2023 and January 31, 2022, approximately 62% and 50% were held outside of

the U.S., respectively. Cash and cash equivalents held outside of the U.S. are generally utilized to support liquidity needs in the

Company's non-U.S. operations.

The Company uses intercompany financing arrangements in an effort to ensure cash can be made available in the country in

which it is needed with the minimum cost possible.

As of January 31, 2023 and 2022, cash and cash equivalents of approximately $2.9 billion and $4.3 billion, respectively, may

not be freely transferable to the U.S. due to local laws, other restrictions or are subject to the approval of the noncontrolling

interest shareholders.

Receivables

Receivables are stated at their carrying values, net of a reserve for doubtful accounts, and are primarily due from the following:

customers, which includes pharmacy insurance companies as well as advertisers, and banks for customer credit, debit cards and

electronic transfer transactions that take in excess of seven days to process; suppliers for marketing or incentive programs;

governments for income taxes; and real estate transactions. As of January 31, 2023 and January 31, 2022, net receivables from

transactions with customers were $3.7 billion and $3.4 billion, respectively.

entories

The Company utilizes various inventory methods to account for and value its inventories depending upon the nature of the store

formats and businesses in each of its segments, resulting in inventories that are recorded at the lower of cost or market or net

realizable value, as appropriate.

• Walmart U.S. Segment - Inventories are primarily accounted for under the retail inventory method of accounting

("RIM") to determine inventory cost, using the last-in, first-out ("LIFO") valuation method. RIM generally results in

inventory being valued at the lower of cost or market as permanent markdowns are immediately recorded as a

reduction of the retail value of inventory.

• Walmart International Segment – Depending on the store format in each market, inventories are generally accounted

for using either the RIM or weighted-average cost method, using the first-in, first-out valuation method.

• Sam's Club Segment - The majority of this segment's inventory is accounted for and valued using the weighted-

average cost LIFO method.

For those segments that utilize the LIFO method, the Company records an adjustment each quarter, if necessary, for the

projected annual effect of inflation or deflation. These estimates are adjusted to actual results determined at year end for

inflation or deflation and inventory levels.

Property and Equipment

Property and equipment are initially recorded at cost. Gains or losses on disposition are recognized as earned or incurred.

Costs of major improvements are capitalized, while costs of normal repairs and maintenance are expensed as incurred. The

following table summarizes the Company's property and equipment balances and includes the estimated useful lives that are

generally used to depreciate the assets on a straight-line basis:

stimated

Useful Lives As of January 31,

(Dollars in millions) (in Years) 2023 2022

Land N/A $ 19,317 $ 19,204

Buildings and improvements 3 - 40 104,554 100,376

Fixtures and equipment 2 - 30 65,235 60,282

Transportation equipment 3 - 15 2,462 2,263

Construction in progress N/A 10,802 7,199

Property and equipment

202,370 189,324

Accumulated depreciation (101,610) (94,809)

Property and equipment, net

$ 100,760 $ 94,515

asehold improvements are depreciated or amortized over the shorter of the estimated useful life of the asset or the remaining

expected lease term. Total depreciation and amortization expense for property and equipment, property under finance leases

and intangible assets for fiscal 2023, 2022 and 2021 was $10.9 billion, $10.7 billion and $11.2 billion, respectively.

Leases

For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a

lease. The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are

initially recognized based on the discounted future lease payments over the term of the lease. If the rate implicit in the

Company's leases is not readily determinable, the Company's applicable incremental borrowing rate is used in calculating the

present value of the sum of the lease payments.

Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is

reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease

obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.

For a majority of all classes of underlying assets, the Company has elected to not separate lease from non-lease components.

For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such

as common area maintenance, utilities, and repairs and maintenance.

pairment of Long-Lived Assets

Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that

the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows, which

is at the individual store or club level. Undiscounted cash flows expected to be generated by the related assets are estimated

over the assets' useful lives based on updated projections. If the evaluation indicates that the carrying amount of the assets may

not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as

determined by an appropriate market appraisal or other valuation technique.

Goodwill and Other Acquired Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is

allocated to the appropriate reporting unit when acquired. Other acquired intangible assets are stated at the fair value acquired

as determined by a valuation technique commensurate with the intended use of the related asset. Goodwill and indefinite-lived

intangible assets are not amortized; rather, they are evaluated for impairment annually and whenever events or changes in

circumstances indicate that the value of the asset may be impaired. Definite-lived intangible assets are considered long-lived

assets and are amortized on a straight-line basis over the periods that expected economic benefits will be provided.

Goodwill is typically assigned to the reporting unit which consolidates the acquisition. Components within the same reportable

segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of

January 31, 2023, the Company's reporting units consisted of Walmart U.S., Walmart International and Sam's Club. Goodwill

and other indefinite-lived acquired intangible assets are evaluated for impairment using either a qualitative or quantitative

approach for each of the Company's reporting units. Generally, a qualitative assessment is first performed to determine whether

a quantitative goodwill impairment test is necessary. If management determines, after performing an assessment based on the

qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, or that a fair

value of the reporting unit substantially in excess of the carrying amount cannot be assured, then a quantitative goodwill

impairment test would be required. The quantitative test for goodwill impairment is performed by determining the fair value of

the related reporting units. Fair value is measured based on the discounted cash flow method and relative market-based

approaches. Management has performed its evaluation and determined the fair value of each reporting unit is significantly

greater than the carrying amount and, accordingly, the Company has not recorded any impairment charges related to goodwill.

The following table reflects goodwill activity, by reportable segment, for fiscal 2023 and 2022:

(

mounts in millions) Walmart U.S.

Walmart

International Sam's Club Total

Balances as of February 1, 2021

$ 2,696 $ 25,966 $ 321 $ 28,983

Changes in currency translation and other — (415) — (415)

Acquisitions 245 201 — 446

Balances as of January 31, 2022

2,941 25,752 321 29,014

Changes in currency translation and other — (1,475) — (1,475)

Acquisitions 433 202 — 635

Balances as of January 31, 2023

$ 3,374 $ 24,479 $ 321 $ 28,174

angible assets are recorded in other long-term assets in the Company's Consolidated Balance Sheets. As of January 31, 2023

and 2022, the Company had $4.3 billion and $4.8 billion, respectively, in indefinite-lived intangible assets which primarily

consists of acquired trade names. There were no significant impairment charges related to intangible assets for fiscal 2023,

2022 or 2021.

Fair Value Measurement

The Company records and discloses certain financial and non-financial assets and liabilities at fair value. The fair value of an

asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties

able to engage in the transaction. The fair value of a liability is the amount that would be paid to transfer the liability to a new

obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor. Refer to

Note 8

for m

ore information.

Investments

Investments in equity securities are recorded in other long-term assets in the Consolidated Balance Sheets. Changes in fair

value of equity securities, as well as certain immaterial equity method investments where the Company has elected the fair

value option measured on a recurring basis, are recognized within other gains and losses in the Consolidated Statements of

Income. These fair value changes, along with certain other immaterial investment activity, resulted in net losses of $1.7 billion

and $2.4 billion for fiscal 2023 and fiscal 2022, respectively and net gains of $8.6 billion in fiscal 2021, primarily due to net

changes in the underlying stock prices of those investments. Refer to Note 8

for de

tails. Equity investments without readily

terminable fair values are carried at cost and adjusted for any observable price changes or impairments within other gains and

losses in the Consolidated Statements of Income.

Investments in debt securities classified as trading are reported at fair value and adjustments in fair value are recorded within

other gains and losses in the Consolidated Statements of Income. As of January 31, 2023 and January 31, 2022, the Company

had $0.5 billion and $1.0 billion, respectively, in debt securities classified as trading.

Indemnification Liabilities

The Company has provided certain indemnifications in connection with its divestitures and has recorded indemnification

liabilities equal to the estimated fair value of the obligations upon inception. As of January 31, 2023 and January 31, 2022, the

Company had $0.6 billion and $0.7 billion, respectively, of certain legal indemnification liabilities recorded within deferred

income taxes and other in the Consolidated Balance Sheets. The maximum of potential future payments under these

indemnities was $3.1 billion, based on exchange rates as of January 31, 2023.

Self Insurance Reserves

The Company self-insures a number of risks, including, but not limited to, workers' compensation, general liability, auto

liability, product liability and certain employee-related healthcare benefits. Standard actuarial procedures and data analysis are

used to estimate the liabilities associated with these risks on an undiscounted basis. The recorded liabilities reflect the ultimate

cost for claims incurred but not paid and any estimable administrative run-out expenses related to the processing of these

outstanding claim payments. On a regular basis, the liabilities are evaluated for appropriateness with claims reserve valuations.

To limit exposure to some risks, the Company maintains insurance coverage with varying limits and retentions, including stop-

loss insurance coverage for workers' compensation, general liability and auto liability.

Derivatives

The Company uses derivatives for hedging purposes to manage its exposure to changes in interest and currency exchange rates,

as well as to maintain an appropriate mix of fixed- and variable-rate debt. Use of derivatives in hedging programs subjects the

Company to certain risks, such as market and credit risks. The Company may be exposed to credit-related losses in the event of

nonperformance by its counterparties to derivatives. Credit risk is monitored through established approval procedures,

including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral from the counterparty.

The Company enters into derivatives with counterparties rated generally "A-" or better by nationally recognized credit rating

agencies. The Company is subject to master netting arrangements which provides set-off and close-out netting of exposures

with counterparties, but the Company does not offset derivative assets and liabilities in its Consolidated Balance Sheets. The

Company's collateral arrangements require the counterparty in a net liability position in excess of pre-determined thresholds,

after considering the effects of netting arrangements, to pledge cash collateral. Cash collateral received from counterparties and

cash collateral provided to counterparties under these arrangement

s not significant

s of Ja

nuary 31, 2023 and 2022.

In order to qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk

management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. If a

derivative is recorded using hedge accounting, depending on the nature of the hedge, derivative gains and losses are recorded

through the same financial statement line item in earnings or are recognized in accumulated other comprehensive loss until the

hedged item is recognized in earnings. Derivatives that do not meet the criteria for hedge accounting, or contracts for which the

Company has not elected hedge accounting, are recorded at fair value with unrealized gains or losses reported in earnings.

Derivatives with an unrealized gain are recorded in the Company's Consolidated Balance Sheets as either current or non-current

assets, based on maturity date, and derivatives with an unrealized loss are recorded as either current or non-current liabilities,

based on maturity date. Refer to Note 8

for t

he presentation of the Company's derivative assets and liabilities.

Fair Value Hedges

The Company is a party to receive fixed-rate, pay variable-rate interest rate swaps that the Company uses to hedge the fair value

of fixed-rate debt. All interest rate swaps designated as fair value hedges of the related long-term debt meet the shortcut

method requirements under U.S. GAAP. Accordingly, changes in the fair values of these interest rate swaps are considered to

exactly offset changes in the fair value of the underlying long-term debt. These derivatives will mature on dates ranging from

April 2023 to September 2031.

Cash Flow Hedges

The Company is a party to receive fixed-rate, pay fixed-rate cross currency interest rate swaps used to hedge the currency

exposure associated with the forecasted payments of principal and interest of certain non-U.S. denominated debt. The

Company records changes in the fair value of these swaps in accumulated other comprehensive loss which is subsequently

reclassified into earnings in the period that the hedged forecasted transaction affects earnings. These derivatives will mature on

dates ranging from July 2024 to January 2039.

t Investment Hedges

Prior to the divestiture of the Company's operations in the United Kingdom and Japan as discussed in Note 12

he Company

was a party to receive fixed-rate, pay fixed-rate cross currency interest rate swaps used to hedge the currency exposure

associated with net investments of these foreign operations. Changes in fair value attributable to the hedged risk were recorded

in accumulated other comprehensive loss. The Company also previously designated certain foreign currency denominated

long-term debt as a hedge of currency exposure associated with the net investment of these divested operations and recorded

foreign currency gain or loss associated with designated long-term debt in accumulated other comprehensive loss. Upon

closing of the sale of the Company's operations in the U.K. and Japan during the first quarter of fiscal 2022, these amounts were

released from accumulated other comprehensive loss as discussed in Note 4

ome Taxes

Income taxes are accounted for under the balance sheet method. Deferred tax assets and liabilities are recognized for the

estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing

assets and liabilities and their respective tax bases ("temporary differences"). Deferred tax assets and liabilities are measured

using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The

effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the

enactment date.

Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that a portion is not

more likely than not to be realized. Many factors are considered when assessing whether it is more likely than not that the

deferred tax assets will be realized, including recent cumulative earnings, expectations of future taxable income, carryforward

periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by

assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences,

forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates.

In determining the provision for income taxes, an annual effective income tax rate is used based on annual income, permanent

differences between book and tax income, and statutory income tax rates. Discrete events such as audit settlements or changes

in tax laws are recognized in the period in which they occur.

The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be

taken in a tax return. The Company records interest and penalties related to unrecognized tax benefits in interest expense and

operating, selling, general and administrative expenses, respectively, in the Company's Consolidated Statements of Income.

Refer to Note 9

for a

dditional income tax disclosures.

Redeemable Noncontrolling Interest

Noncontrolling interests that are redeemable outside the Company's control at fixed or determinable prices and dates are

presented as temporary equity on the Consolidated Balance Sheets. Redeemable noncontrolling interests are

recorded at the greater of the redemption fair value or the carrying value of the noncontrolling interest and adjusted each

reporting period for income, loss and any distributions made. Remeasurements to the redemption value of the redeemable

noncontrolling interest are recognized in capital in excess of par. As of January 31, 2023, the Company has a redeemable

noncontrolling interest related to an acquisition in the Walmart U.S. segment as the minority interest owner holds a put option

which may require the Company to purchase its interest beginning in December 2027 with annual options thereafter.

Revenue Recognition

Net Sales

The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise or

services to the customer. eCommerce sales include shipping revenue and are recorded upon delivery to the customer.

Estimated sales returns are calculated based on expected returns.

Membership Fee Revenue

The Company recognizes membership fee revenue over the term of the membership, which is typically 12 months.

Membership fee revenue was $2.6 billion for fiscal 2023, $2.2 billion for fiscal 2022 and $1.7 billion for fiscal 2021.

Membership fee revenue is included in membership and other income in the Company's Consolidated Statements of Income.

Deferred membership fee revenue is included in accrued liabilities in the Company's Consolidated Balance Sheets.

ft Cards

Customer purchases of gift cards are not recognized as sales until the card is redeemed and the customer purchases merchandise

using the gift card. Gift cards in the U.S. and some countries do not carry an expiration date; therefore, customers and members

can redeem their gift cards for merchandise and services indefinitely. Gift cards in some countries where the Company does

business have expiration dates. While gift cards are generally redeemed within 12 months, a certain number of gift cards, both

with and without expiration dates, will not be fully redeemed. Management estimates unredeemed balances and recognizes

revenue for these amounts in membership and other income in the Company's Consolidated Statements of Income over the

expected redemption period.

Financial, Advertising and Other Services

The Company recognizes revenue from service transactions at the time the service is performed. Generally, revenue from

services is classified as a component of net sales in the Company's Consolidated Statements of Income.

Cost of Sales

Cost of sales includes actual product cost, the cost of transportation to the Company's distribution facilities, stores and clubs

from suppliers, the cost of transportation from the Company's distribution facilities to the stores, clubs and customers and the

cost of warehousing for the Sam's Club segment and import distribution centers. Cost of sales is reduced by supplier payments

that are not a reimbursement of specific, incremental and identifiable costs.

Payments from Suppliers

The Company receives consideration from suppliers for various programs, primarily volume incentives, warehouse allowances

and reimbursements for specific programs such as markdowns, margin protection, certain advertising arrangements and

supplier-specific fixtures. Payments from suppliers are accounted for as a reduction of cost of sales, except in certain limited

situations when the payment is a reimbursement of specific, incremental and identifiable costs, and are recognized in the

Company's Consolidated Statements of Income when the related inventory is sold.

Operating, Selling, General and Administrative Expenses

Operating, selling, general and administrative expenses include all operating costs of the Company, except cost of sales, as

described above. As a result, the majority of the cost of warehousing and occupancy for the Walmart U.S. and Walmart

International segments' distribution facilities is included in operating, selling, general and administrative expenses. Because the

Company only includes a portion of the cost of its Walmart U.S. and Walmart International segments' distribution facilities in

cost of sales, its gross profit and gross profit as a percentage of net sales may not be comparable to those of other retailers that

may include all costs related to their distribution facilities in cost of sales and in the calculation of gross profit.

Advertising Costs

Advertising costs are expensed as incurred, consist primarily of digital, television and print advertisements and are recorded in

operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. Advertising costs

were $4.1 billion, $3.9 billion and $3.2 billion for fiscal 2023, 2022 and 2021, respectively.

Currency Translation

The assets and liabilities of all international subsidiaries are translated from the respective local currency to the U.S. dollar

using exchange rates at the balance sheet date. Related translation adjustments are recorded as a component of accumulated

other comprehensive loss. The Company's Consolidated Statements of Income of all international subsidiaries are translated

from the respective local currencies to the U.S. dollar using average exchange rates for the period covered by the income

statements.

Recent Accounting Pronouncements

In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of

Supplier Finance Program Obligations, which enhances the transparency about the use of supplier finance programs for

investors and other allocators of capital. The amendments are effective for fiscal years beginning after December 15, 2022,

including interim periods within those fiscal years, except for the disclosure of rollforward information, which is effective for

fiscal years beginning after December 15, 2023. Early adoption is permitted. The amendments should be applied retrospectively

to each period in which a balance sheet is presented, except for disclosure of rollforward information, which should be applied

prospectively. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

ote

2. Net Income Per Common Share

Basic net income per common share attributable to Walmart is based on the weighted-average common shares outstanding

during the relevant period. Diluted net income per common share attributable to Walmart is based on the weighted-average

common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. The Company did

not have significant share-based awards outstanding that were antidilutive and not included in the calculation of diluted net

income per common share attributable to Walmart for fiscal 2023, 2022 and 2021.

The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net

income per common share attributable to Walmart:

iscal Years En

ded January 31,

(Amounts in millions, except per share data) 2023 2022 2021

Numerator

Consolidated net income

$ 11,292 $ 13,940 $ 13,706

Consolidated net (income) loss attributable to noncontrolling interest 388 (267) (196)

Consolidated net income attributable to Walmart

$ 11,680 $ 13,673 $ 13,510

Denominator

Weighted-average common shares outstanding, basic 2,724 2,792 2,831

Dilutive impact of stock options and other share-based awards

10 13 16

Weighted-average common shares outstanding, diluted 2,734 2,805 2,847

Net income per common share attributable to Walmart

Basic

$ 4.29 $ 4.90 $ 4.77

Diluted

4.27 4.87 4.75

ote

3. Shareholders' Equity

The total authorized shares of $0.10 par value common stock is 11.0 billion, of which 2.7 billion and 2.8 billion were issued and

outstanding as of January 31, 2023 and 2022, respectively.

Purchases and Sales of Subsidiary Stock

During fiscal 2023, the Company completed a $0.4 billion buyout of the noncontrolling interest shareholders of the Company's

Massmart subsidiary. This transaction increased the Company's ownership in Massmart from approximately 53% to 100%.

Additionally, the Company completed a $0.4 billion acquisition of Alert Innovation, which was previously consolidated as a

variable interest entity, and resulted in the Company becoming a 100% owner.

Also during fiscal 2023, the Company increased its ownership in PhonePe, a digital transaction platform in India, from

approximately 76% to approximately 89% as part of the separation from the Company's majority-owned Flipkart subsidiary. In

consideration for the transaction, the Company recorded a liability to noncontrolling interest holders of $0.9 billion within

accrued liabilities on the Company's Consolidated Balance Sheet.

During fiscal 2022, the Company received $3.2 billion primarily related to a new equity funding for the Company's majority-

owned Flipkart subsidiary, which reduced the Company's ownership from approximately 83% as of January 31, 2021 to

approximately 75%.

Share-Based Compensation

The Company has awarded share-based compensation to associates and nonemployee directors of the Company. The

compensation expense recognized for all stock incentive plans, including expense associated with plans of the Company's

consolidated subsidiaries granted in the subsidiaries' respective stock, was $1.6 billion, $1.2 billion and $1.2 billion for fiscal

2023, 2022 and 2021, respectively. Share-based compensation expense is generally included in operating, selling, general and

administrative expenses in the Company's Consolidated Statements of Income. The total income tax benefit recognized for

share-based compensation was $0.4 billion, $0.3 billion and $0.3 billion for fiscal 2023, 2022 and 2021, respectively. The

following table summarizes the Company's share-based compensation expense by award type for all plans:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Restricted stock units $ 927 $ 659 $ 742

Restricted stock and performance-based restricted stock units 444 321 277

Other 207 183 150

Share-based compensation expense

$ 1,578 $ 1,163 $ 1,169

The

Walmart Inc. Stock Incentive Plan of 2015 (the "Plan"), as subsequently amended and restated, was established to grant

stock options, restricted (non-vested) stock, restricted stock units, performance share units and other equity compensation

rds for which 260 million shares of Walmart common stock issued or to be issued under the Plan have been registered

under the Securities Act of 1933. The Company believes that such awards serve to align the interests of its associates with

those of its shareholders.

The Plan's award types are summarized as follows:

• Restricted Stock Units. Restricted stock units provide rights to Company stock after a specified service period.

Beginning in fiscal 2023, restricted stock units generally vest at a rate of 8% each quarter over a three year period from

the date of grant. For grants made from fiscal 2020 through fiscal 2022, restricted stock units generally vest at a rate of

25% each year over a four year period from the date of the grant. Prior to fiscal 2020, 50% of restricted stock units

generally vested three years from the grant date and the remaining 50% were vested five years from the grant date. The

fair value of each restricted stock unit is determined on the date of grant using the stock price discounted for the

expected dividend yield through the vesting period and is recognized ratably over the vesting period. The expected

dividend yield is based on the anticipated dividends over the vesting period. The weighted-average discount for the

dividend yield used to determine the fair value of restricted stock units granted in fiscal 2023, 2022 and 2021 was 2.3%,

3.8% and 4.4%, respectively.

• Restricted Stock and Performance-based Restricted Stock Units. Restricted stock awards are for shares that vest based

on the passage of time and include restrictions related to employment. Performance-based restricted stock units vest

based on the passage of time and achievement of performance criteria and generally range from 0% to 150% of the

original award amount. Vesting periods for restricted stock are generally between one month and three years. Vesting

periods for performance-based restricted stock units are generally between one and three years. Restricted stock and

performance-based restricted stock units may be settled or deferred in stock and are accounted for as equity in the

Company's Consolidated Balance Sheets. The fair value of restricted stock awards is determined on the date of grant

and is expensed ratably over the vesting period. The fair value of performance-based restricted stock units is

determined on the date of grant using the Company's stock price discounted for the expected dividend yield through the

vesting period and is recognized over the vesting period. The weighted-average discount for the dividend yield used to

determine the fair value of performance-based restricted stock units in fiscal 2023, 2022 and 2021 was 3.3%, 4.2% and

4.5%, respectively.

In addition to the Plan, Flipkart and PhonePe have share-based compensation plans for associates under which options to

acquire their own common shares may be issued. These plans may be subject to performance or other conditions, including

vesting upon an initial public offering. Share-based compensation expense associated with certain of these plans is included in

the Other line in the table above.

The following table shows the activity for restricted stock units and restricted stock and performance-based restricted stock

units during fiscal 2023:

estricted

Stock Units

Restricted Stock and

Performance-based Restricted Stock

Units

(Shares in thousands) Shares

Weighted-Average

Grant-Date Fair

Value Per Share Shares

Weighted-Average

Grant-Date Fair

Value Per Share

Outstanding as of February 1, 2022 17,283 $ 111.42 6,140 $ 125.25

Granted 9,357 143.97 4,572 142.74

Adjustment for performance achievement

(1)

— — 638 132.00

Vested/exercised (8,338) 111.69 (3,242) 120.18

Forfeited (2,082) 127.36 (948) 128.68

Outstanding as of January 31, 2023

16,220 $ 128.01 7,160 $ 138.86

(1)

Represents the adjustment to previously granted performance s

hare units for performance achievement.

The following table includes additional information related to restricted stock units and restricted stock and performance-based

restricted stock units:

iscal Years En

ded January 31,

(Amounts in millions, except years) 2023 2022 2021

Fair value of restricted stock units vested $ 931 $ 703 $ 597

Fair value of restricted stock and performance-based restricted stock units vested 390 264 275

Unrecognized compensation cost for restricted stock units 1,323 1,102 1,062

Unrecognized compensation cost for restricted stock and performance-based restricted stock units 548 417 344

Weighted average remaining period to expense for restricted stock units (years) 1.0 1.2 1.1

Weighted average remaining period to expense for restricted stock and performance-based restricted stock

units (years)

1.4 1.5 1.4

are

Repurchase Program

From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the

Company's Board of Directors. All repurchases made during the fiscal year prior to November 21, 2022 were made under the

plan in effect at the beginning of fiscal 2022. In November 2022, the Company approved a new $20.0 billion share repurchase

program which has no expiration date or other restrictions limiting the period over which the Company can make repurchases,

and beginning November 21, 2022, replaced the previous share repurchase program. As of January 31, 2023 authorization for

$19.3 billion of share repurchases remained under the share repurchase program. Any repurchased shares are constructively

retired and returned to an unissued status.

The Company regularly reviews share repurchase activity and considers several factors in determining when to execute share

repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings, results of operations

and the market price of the Company's common stock. The following table provides, on a settlement date basis, the number of

shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2023, 2022 and 2021:

iscal Years En

ded January 31,

(Amounts in millions, except per share data) 2023 2022 2021

Total number of shares repurchased 73.9 69.7 19.4

Average price paid per share

$ 134.17 $ 140.45 $ 135.20

Total cash paid for share repurchases

$ 9,920 $ 9,787 $ 2,625

ote

4. Accumulated Other Comprehensive Loss

The following table provides the changes in the composition of total accumulated other comprehensive loss for fiscal 2023,

2022 and 2021:

(

mounts in millions and net of immaterial income

taxes)

Currency

Translation

and Other

Net Investment

Hedges

Cash Flow

Hedges

Minimum

Pension Liability Total

Balances as of February 1, 2020

$ (11,827) $ 1,517 $ (539) $ (1,956) $ (12,805)

Other comprehensive income (loss) before

reclassifications, net

214 (221) 186 (172) 7

Reclassifications to income, net

(1)

841 — 49 142 1,032

Balances as of January 31, 2021

(10,772) 1,296 (304) (1,986) (11,766)

Other comprehensive loss before reclassifications,

net

(586) (7) (540) — (1,133)

Reclassifications related to business dispositions,

net

(2)

3,258 (1,195) 30 1,966 4,059

Reclassifications to income, net

— — 66 8 74

Balances as of January 31, 2022

(8,100) 94 (748) (12) (8,766)

Other comprehensive income (loss) before

reclassifications, net

(1,145) — (571) 5 (1,711)

Return of currency translation to parent

(3)

(1,262) — — — (1,262)

Reclassifications to income, net

(309) — 368 — 59

Balances as of January 31, 2023

$ (10,816) $ 94 $ (951) $ (7) $ (11,680)

(1)

Includes a cumulative foreign currency translation loss of

$0.8 billion, for which there was no related income taxes, upon sale of the majority stake in

Walmart Argentina. Refer to Note 12

(

Upon closing of the sale of the Company's operations in the U.

K. and Japan during the first quarter of fiscal 2022, these amounts were released from

accumulated other comprehensive loss, the majority of which was considered in the impairment evaluation when the individual disposal groups met the held

for sale classification in fiscal 2021.

(3)

Upon closing of the noncontrolling interest shareholder buyout of the Company's Massmart subsidiary during the fourth quarter of fiscal 2023, the

cumulative amount of currency translation was reallocated from the Company's noncontrolling interest back to the Company. Refer to

ote 3

ounts reclassified from accumulated other comprehensive loss for foreign currency on matured bonds (reflected in currency

translation and other) and derivatives are recorded in interest, net, in the Company's Consolidated Statements of Income. The

amounts for the minimum pension liability, as well as the cumulative translation resulting from the disposition of a business,

are recorded in other gains and losses in the Company's Consolidated Statements of Income. Amounts related to the Company's

derivatives expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months are

not significant.

ote

5. Accrued Liabilities

The Company's accrued liabilities consist of the following as of January 31, 2023 and 2022:

uary 31,

(Amounts in millions) 2023 2022

Accrued wages and benefits

(1)

8,287 7,908

Self-insurance

(2)

4,724 4,652

Accrued non-income taxes

(3)

3,425 3,247

Opioid litigation settlement

(4)

2,949 —

Deferred gift card revenue

2,488 2,559

Other

(5)

9,253 7,694

Total accrued liabilities

$ 31,126 $ 26,060

(

Accrued wages and benefits include accrued wages, salaries,

vacation, bonuses and other incentive plans.

(2)

Self-insurance consists of insurance-related liabilities, such as workers' compensation, general liability, auto liability, product liability and certain

employee-related healthcare benefits.

(3)

Accrued non-income taxes include accrued payroll, property, value-added, sales and miscellaneous other taxes.

(4)

Represents the remaining balance for the opioids litigation settlement. See Note 10

(

Other accr

ued liabilities includes items such as deferred membership revenue, the purchase of PhonePe stock (see Note 3

)

, interest, supply chain,

advertising, and maintenance & utilit

ies.

Note 6. Short-term Borrowings and Long-term Debt

Short-term borrowings consist of commercial paper and lines of credit. Short-term borrowings as of January 31, 2023 and 2022

were $0.4 billion, with weighted-average interest rates of 6.6% and 2.9%, respectively.

The Company has various committed lines of credit in the U.S. to support its commercial paper program and are summarized in

the following table:

uary 31, 2023 January 31, 2022

(Amounts in millions) Available Drawn Undrawn Available Drawn Undrawn

Five-year credit facility

(1)

$ 5,000 $ — $ 5,000 $ 5,000 $ — $ 5,000

364-day revolving credit facility

(1)

10,000 — 10,000 10,000 — 10,000

Total

$ 15,000 $ — $ 15,000 $ 15,000 $ — $ 15,000

(

In April 2022, the Company renewed and extended its existing 364-day revolving credit facility as well as its five year credit facility.

The committed lines of credit in the table above mature in April 2023 and April 2027, carry interest rates of SOFR plus 60 basis

points, and incur commitment fees ranging between 1.5 and 4.0 basis points. In conjunction with the committed lines of credit

listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to the

maximum amount of secured debt. Additionally, the Company has syndicated and fronted letters of credit available which

totaled $2.1 billion and $1.8 billion as of January 31, 2023 and 2022, respectively, of which $1.8 billion and $1.7 billion was

drawn as of January 31, 2023 and 2022, respectively.

The Company's long-term debt, which includes the fair value instruments further discussed in Note 8

onsists of the following

as of January 31, 2023 and 2022:

uary 31, 2023 January 31, 2022

(Amounts in millions)

Maturity Dates

By Fiscal Year Amount

Average

Rate

(1)

Amount

Average

Rate

(1)

Unsecured debt

Fixed 2024 - 2053 $ 33,707 3.6% $ 29,957 3.5%

Total U.S. dollar denominated

33,707 29,957

Fixed 2027 - 2030 1,790 4.0% 2,787 3.3%

Total Euro denominated

1,790 2,787

Fixed 2031 - 2039 3,318 5.4% 3,601 5.4%

Total Sterling denominated

3,318 3,601

Fixed 2025 - 2028 767 0.4% 1,475 0.3%

Total Yen denominated

767 1,475

Total unsecured debt

39,582 37,820

Total other

(2)

(742) (153)

Total debt

38,840 37,667

Less amounts due within one year (4,191) (2,803)

Long-term debt

$ 34,649 $ 34,864

(1)

he average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end interest rates.

(2)

Includes deferred loan costs, discounts, fair value hedges, foreign-held debt and secured debt.

nnua

l maturities of long-term debt during the next five years and thereafter are as follows:

(

mounts in millions) Annual

Fiscal Year Maturities

2024 $ 4,191

2025 3,516

2026 2,604

2027 2,737

2028 1,817

Thereafter 23,975

Total

$ 38,840

bt Issuances

Information on significant long-term debt issued during fiscal 2023, for general corporate purposes, is as follows:

(

mounts in millions)

Issue Date Principal Amount Maturity Date Fixed vs. Floating Interest Rate Net Proceeds

September 9, 2022 $1,750 September 9, 2025 Fixed 3.900% $ 1,744

September 9, 2022 $1,000 September 9, 2027 Fixed 3.950% $ 994

September 9, 2022 $1,250 September 9, 2032 Fixed 4.150% $ 1,239

September 9, 2022 $1,000 September 9, 2052 Fixed 4.500% $ 992

Total $ 4,969

se issuances are senior, unsecured notes which rank equally with all other senior, unsecured debt obligations of the

Company, and are not convertible or exchangeable. These issuances do not contain any financial covenants which restrict the

Company's ability to pay dividends or repurchase Company stock. Additionally, the Company received immaterial proceeds

from debt issuances by certain international markets.

Maturities and Extinguishments

The following table provides details of debt repayments during fiscal 2023:

(

mounts in millions)

Maturity Date Principal Amount Fixed vs. Floating Interest Rate Repayment

April 8, 2022 €850 Fixed 1.900% $ 927

July 15, 2022 ¥70,000 Fixed 0.183% 512

December 15, 2022 $1,250 Fixed 2.350% 1,250

Total repayment of matured debt 2,689

following table provides details of debt repayments during fiscal 2022:

(

mounts in millions)

Maturity Date Principal Amount Fixed vs. Floating Interest Rate Repayment

April 15, 2021 $510 Fixed 4.250% $ 510

June 23, 2021 $750 Floating Floating 750

June 23, 2021 $1,750 Fixed 3.125% 1,750

Total repayment of matured debt 3,010

June 26, 2023 $2,750 Fixed 3.400% 470

October 15, 2023 $152 Fixed 6.750% 2

July 8, 2024 $1,500 Fixed 2.850% 510

December 15, 2024 $1,000 Fixed 2.650% 370

June 26, 2025 $1,500 Fixed 3.550% 625

July 8, 2026 $1,250 Fixed 3.050% 451

April 5, 2027 $483 Fixed 5.875% 110

June 26, 2028 $2,750 Fixed 3.700% 1,271

July 8, 2029 $1,250 Fixed 3.250% 517

September 24, 2029 $500 Fixed 2.375% 181

February 15, 2030 $588 Fixed 7.550% 119

September 1, 2035 $1,968 Fixed 5.250% 635

August 15, 2037 $1,300 Fixed 6.500% 262

April 15, 2038 $919 Fixed 6.200% 116

June 28, 2038 $1,500 Fixed 3.950% 925

April 1, 2040 $751 Fixed 5.625% 142

July 8, 2040 $378 Fixed 4.875% 101

October 25, 2040 $519 Fixed 5.000% 125

April 15, 2041 $918 Fixed 5.625% 305

April 11, 2043 $709 Fixed 4.000% 296

October 2, 2043 $269 Fixed 4.750% 38

April 22, 2044 $502 Fixed 4.300% 172

December 15, 2047 $1,000 Fixed 3.625% 566

June 29, 2048 $3,000 Fixed 4.050% 1,317

September 24, 2049 $1,000 Fixed 2.950% 371

Total repayment of extinguished debt

(1)

10,000

Total 13,010

(

Represents portion of the outstanding principal amount which wa

s repaid during fiscal 2022.

Individual repayment amounts may not sum due to rounding.

The Company recorded a $2.4 billion loss on extinguishment of debt during fiscal 2022, which included payment of $2.3 billion

in early extinguishment premiums.

Note 7. Leases

The Company leases certain retail locations, distribution and fulfillment centers, warehouses, office spaces, land and equipment

throughout the U.S. and internationally. The Company's lease costs recognized in the Consolidated Statement of Income consist

of the following:

iscal years en

ded January 31,

(Amounts in millions) 2023 2022 2021

Operating lease cost $ 2,306

$ 2,274 $ 2,626

Finance lease cost:

Amortization of right-of-use assets 596

565 583

Interest on lease obligations 256

232 298

Variable lease cost 899

823 777

her lease information is as follows:

iscal years en

ded January 31,

(Amounts in millions) 2023 2022 2021

Cash paid for amounts included in measurement of lease obligations:

Operating cash flows from operating leases $ 2,280 2,234 2,629

Operating cash flows from finance leases 248 225 286

Financing cash flows from finance leases 563 538 546

Assets obtained in exchange for operating lease obligations 1,714 1,816 2,131

Assets obtained in exchange for finance lease obligations 1,226 1,044 1,547

s of Jan

uary 31,

2023 2022

Weighted-average remaining lease term - operating leases

12.0 years 12.2 years

Weighted-average remaining lease term - finance leases

13.3 years 13.4 years

Weighted-average discount rate - operating leases

6.0 % 5.9 %

Weighted-average discount rate - finance leases

6.5 % 6.5 %

aggregate annual lease obligations at January 31, 2023, are as follows:

(

mounts in millions)

Fiscal Year Operating Leases Finance Leases

2024 $ 2,166 $ 834

2025 2,077 774

2026 1,917 712

2027 1,735 638

2028 1,556 545

Thereafter 11,018 5,438

Total undiscounted lease obligations 20,469 8,941

Less imputed interest (6,168) (3,531)

Net lease obligations $ 14,301 $ 5,410

ote

8. Fair Value Measurements

Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in

measuring fair value. The levels of the fair value hierarchy are:

• Level 1: observable inputs such as quoted prices in active markets;

• Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and

• Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop

its own assumptions.

As described in Note 1

he Company measures the fair value of certain equity investments, including certain equity method

investments, on a recurring basis in the accompanying Consolidated Balance Sheets. The fair values of the Company's equity

investments measured on a recurring basis are as follows:

(

mounts in millions)

Fair Value as of

January 31, 2023

Fair Value as of

January 31, 2022

Equity investments measured using Level 1 inputs $ 5,099 $ 6,069

Equity investments measured using Level 2 inputs 5,570 5,819

Total

$ 10,669 $ 11,888

rivatives

The Company also has derivatives recorded at fair value. Derivative fair values are the estimated amounts the Company would

receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been

measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward

curves. As of January 31, 2023 and January 31, 2022, the notional amounts and fair values of these derivatives were as follows:

uary 31, 2023 January 31, 2022

(Amounts in millions)

Notional

Amount Fair Value

Notional

Amount Fair Value

Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges $ 8,021 $ (689)

(1)

$ 8,021 $ (47)

(1)

Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges 5,900 (1,423)

(1)

7,855 (1,048)

(1)

Total

$ 13,921 $ (2,112) $ 15,876 $ (1,095)

(

rimarily classified in deferred income taxes and other in the Company's Consolidated Balance Sheets.

Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are

also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a

result of impairment charges.

Upon completing the sales of the Company's operations in the U.K. in February 2021 and Japan in March 2021, the Company

recorded incremental non-recurring impairment charges of $0.4 billion in the first quarter of fiscal 2022 within other gains and

losses in the Consolidated Statements of Income. Refer to Note 12

he Company did not have any material assets or liabilities

resulting in nonrecurring fair value measurements as of January 31, 2023.

For the fiscal year ended January 31, 2021, the Company's operations in Argentina, Japan and the U.K. met the held for sale

criteria in fiscal 2021, as further discussed in Note 12

As a

result, the individual disposal groups were measured at fair value,

less costs to sell, which is considered a Level 3 fair value measurement based on each transaction's expected consideration. The

carrying value of the Argentina, Japan and U.K. disposal groups exceeded their fair value, less costs to sell, and as a result, the

Company recognized non-recurring impairment charges. The aggregate pre-tax loss of $8.3 billion associated with the

divestiture of these operations in the Walmart International segment was recorded in other gains and losses in the Consolidated

Statements of Income for the year ended January 31, 2021, and included these impairment charges as well as a $2.3 billion

charge related to the Asda pension plan. These impairment charges included the anticipated release of non-cash cumulative

foreign currency translation losses associated with the disposal groups. Other impairment charges for assets measured at fair

value on a nonrecurring basis during fiscal 2021 were immaterial.

Other Fair Value Disclosures

The Company records cash and cash equivalents, restricted cash and short-term borrowings at cost. The carrying values of

these instruments approximate their fair value due to their short-term maturities.

The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on the

Company's current incremental borrowing rate for similar types of borrowing arrangements. The carrying value and fair value

of the Company's long-term debt as of January 31, 2023 and 2022, are as follows:

uary 31, 2023 January 31, 2022

(Amounts in millions)

Carrying Value

Fair Value Carrying Value Fair Value

Long-term debt, including amounts due within one year $ 38,840 $ 38,169 $ 37,667 $ 42,381

ote

9. Taxes

The components of income before income taxes are as follows:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

U.S. $ 15,089 $ 15,536 $ 18,068

Non-U.S. 1,927 3,160 2,496

Total income before income taxes

$ 17,016 $ 18,696 $ 20,564

sum

mary of the provision for income taxes is as follows:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Current:

U.S. federal $ 2,030 $ 3,313 $ 2,991

U.S. state and local 610 649 742

International 2,654 1,553 1,127

Total current tax provision

5,294 5,515 4,860

Deferred:

U.S. federal 608 (671) 2,316

U.S. state and local 119 41 23

International (297) (129) (341)

Total deferred tax expense (benefit)

430 (759) 1,998

Total provision for income taxes

$ 5,724 $ 4,756 $ 6,858

fective Income Tax Rate Reconciliation

A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax

income from continuing operations is as follows:

iscal Years En

ded January 31,

2023 2022 2021

U.S. statutory tax rate 21.0 % 21.0 % 21.0 %

U.S. state income taxes, net of federal income tax benefit 3.1 % 2.8 % 2.9 %

Income taxed outside the U.S. 1.1 % (1.5) % (0.1) %

Separation, disposal and wind-down of certain business operations 6.3 % 0.5 % 7.1 %

Valuation allowance 1.7 % 4.4 % 2.3 %

Net impact of repatriated international earnings (0.4) % (0.3) % (0.4) %

Federal tax credits (1.3) % (1.1) % (0.9) %

Change in unrecognized tax benefits 0.3 % 0.2 % 0.8 %

Other, net 1.8 % (0.6) % 0.6 %

Effective income tax rate

33.6 % 25.4 % 33.3 %

following sections regarding deferred taxes, unremitted earnings, net operating losses, tax credit carryforwards, valuation

allowances and uncertain tax positions exclude amounts related to operations classified as held for sale.

Deferred Taxes

The significant components of the Company's deferred tax account balances are as follows:

uary 31,

(Amounts in millions) 2023 2022

Deferred tax assets:

Loss and tax credit carryforwards $ 7,690 $ 9,456

Accrued liabilities 3,312 2,752

Share-based compensation 237 231

Lease obligations 4,653 4,320

Other 839 893

Total deferred tax assets

16,731 17,652

Valuation allowances (7,815) (9,542)

Deferred tax assets, net of valuation allowances

8,916 8,110

Deferred tax liabilities:

Property and equipment 4,352 4,414

Acquired intangibles 932 1,065

Inventory 3,032 1,588

Lease right of use assets 4,727 4,355

Mark-to-market investments 1,390 1,825

Other 249 307

Total deferred tax liabilities

14,682 13,554

Net deferred tax liabilities

$ 5,766 $ 5,444

deferred taxes noted above are classified as follows in the Company's Consolidated Balance Sheets:

Jan

uary 31,

(Amounts in millions) 2023 2022

Balance Sheet classification

Assets:

Other long-term assets

$ 1,503 $ 1,473

Liabilities:

Deferred income taxes and other 7,269 6,917

Net deferred tax liabilities

$ 5,766 $ 5,444

nre

mitted Earnings

Prior to the Tax Cuts and Jobs Act of 2017 (the "Tax Act"), the Company asserted that all unremitted earnings of its foreign

subsidiaries were considered indefinitely reinvested. As a result of the Tax Act, the Company reported and paid U.S. tax on the

majority of its previously unremitted foreign earnings, and repatriations of foreign earnings will generally be free of U.S.

federal tax, but may incur other taxes such as withholding or state taxes. As of January 31, 2023, the Company has not

recorded approximately $3 billion of deferred tax liabilities associated with remaining unremitted foreign earnings considered

indefinitely reinvested, for which U.S. and foreign income and withholding taxes would be due upon repatriation.

Net Operating Losses, Tax Credit Carryforwards and Valuation Allowances

As of January 31, 2023, the Company's net operating loss and capital loss carryforwards totaled approximately $32.3 billion.

Of these carryforwards, approximately $19.6 billion will expire, if not utilized, in various years through 2043. The remaining

carryforwards have no expiration.

The realizability of these future tax deductions and credits is evaluated by assessing the adequacy of future expected taxable

income from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences,

forecasted operating earnings and available tax planning strategies. To the extent the Company does not consider it more likely

than not that a deferred tax asset will be recovered, a valuation allowance is generally established. To the extent that a

valuation allowance was established and it is subsequently determined that it is more likely than not that the deferred tax assets

will be recovered, the change in the valuation allowance is recognized in the Consolidated Statements of Income.

The Company had valuation allowances of approximately $7.8 billion and $9.5 billion as of January 31, 2023 and 2022,

respectively, on deferred tax assets associated primarily with the net operating loss carryforwards. Activity in the valuation

allowance during fiscal 2023 related to valuation allowance builds in multiple markets, as well as releases due to the expiration

of unrealized deferred tax assets.

Uncertain Tax Positions

The benefits of uncertain tax positions are recorded in the Company's Consolidated Financial Statements only after determining

a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities.

As of January 31, 2023 and 2022, the amount of gross unrecognized tax benefits related to continuing operations was $3.3

billion and $3.2 billion, respectively. The amount of unrecognized tax benefits that would affect the Company's effective

income tax rate was $1.5 billion and $1.8 billion as of January 31, 2023 and 2022, respectively.

A reconciliation of gross unrecognized tax benefits from continuing operations is as follows:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Gross unrecognized tax benefits, beginning of year

$ 3,245 $ 3,135 $ 1,817

Increases related to prior year tax positions 79 170 92

Decreases related to prior year tax positions (248) (97) (264)

Increases related to current year tax positions 357 75 1,582

Settlements during the period (89) (5) (64)

Lapse in statutes of limitations (37) (33) (28)

Gross unrecognized tax benefits, end of year

$ 3,307 $ 3,245 $ 3,135

The

Company classifies interest and penalties related to uncertain tax benefits as interest expense and as operating, selling,

general and administrative expenses, respectively. Interest expense and penalties related to these positions were immaterial for

fiscal 2023, 2022 and 2021. During the next twelve months, it is reasonably possible that tax audit resolutions could reduce

unrecognized tax benefits by an immaterial amount, either because the tax positions are sustained on audit or because the

Company agrees to their disallowance. The Company does not expect any change to have a material impact to its Consolidated

Financial Statements.

Company remains subject to income tax examinations for its U.S. federal income taxes generally for fiscal 2018 through

2022. The Company also remains subject to income tax examinations for international income taxes for fiscal 2013 through

2022, and for U.S. state and local income taxes generally for the fiscal years ended 2015 through 2022. With few exceptions,

the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before fiscal

2013.

Other Taxes

The Company is subject to tax examinations for value added, sales-based, payroll and other non-income taxes. A number of

these examinations are ongoing in various jurisdictions. In certain cases, the Company has received assessments and judgments

from the respective taxing authorities in connection with these examinations. Unless otherwise indicated, the possible losses or

range of possible losses associated with these matters are individually immaterial, but a group of related matters, if decided

adversely to the Company, could result in a liability material to the Company's Consolidated Financial Statements.

Note 10. Contingencies

Legal Proceedings

The Company is involved in a number of legal proceedings and certain regulatory matters. The Company records a liability for

those legal proceedings and regulatory matters when it determines it is probable that a loss has been incurred and the amount of

the loss can be reasonably estimated. The Company also discloses when it is reasonably possible that a material loss may be

incurred. From time to time, the Company may enter into discussions regarding settlement of these matters, and may enter into

settlement agreements, if it believes settlement is in the best interest of the Company and its shareholders.

Unless stated otherwise, the matters discussed below, if decided adversely to or settled by the Company, individually or in the

aggregate, may result in a liability material to the Company's financial position, results of operations or cash flows.

Settlement Framework Regarding Multidistrict and State or Local Opioid Related Litigation

uri

ng fiscal 2023, the Company accrued a liability for approximately $3.3 billion for the Settlement Framework (described

below) and other previously agreed upon state and tribal settlements. Because loss contingencies are inherently unpredictable

and unfavorable developments or resolutions can occur, the assessment is highly subjective and requires judgments about future

events. Moreover, the Settlement Framework will only take effect once a sufficient number of political subdivisions join, and

there is no assurance regarding such participation. The amount of ultimate loss may thus differ materially from this accrual. The

Settlement Framework includes no admission of wrongdoing or liability by the Company, and the Company continues to

believe it has substantial factual and legal defenses to opioids-related litigation.

In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous lawsuits filed against a

wide array of defendants by various plaintiffs, including counties, cities, healthcare providers, Native American tribes,

individuals, and third-party payers, asserting claims generally concerning the impacts of widespread opioid abuse. The

consolidated multidistrict litigation is entitled In re National Prescription Opiate Litigation (MDL No. 2804) (the "MDL") and

is pending in the U.S. District Court for the Northern District of Ohio. The Company is named as a defendant in some of the

cases included in the MDL.

Similar cases that name the Company also have been filed in state courts by state, local, and tribal governments, healthcare

providers, and other plaintiffs. Plaintiffs in these state court cases and in the MDL are seeking compensatory and punitive

damages, as well as injunctive relief including abatement. The Company has also been responding to subpoenas, information

requests, and investigations from governmental entities related to nationwide controlled substance dispensing and distribution

practices involving opioids.

On November 15, 2022, the Company announced it had agreed to financial amounts and payment terms to resolve substantially

all opioids-related lawsuits filed against the Company by states, political subdivisions, and Native American tribes whether as

part of the MDL (excluding, however, a single, two-county trial described further below) or pending state court, as well as all

potential claims that could be made against the Company by states, political subdivisions, and Native American tribes for up to

approximately $3.1 billion (the "Settlement Amount"). The Settlement Amount includes amounts for remediation of alleged

harms as well as attorneys' fees and costs and also includes some, but not all, amounts from previously agreed recent

settlements by the Company. One settlement framework with corresponding conditions and participation thresholds applies for

the states and political subdivisions, and another settlement framework with corresponding conditions and participation

thresholds applies for the Native American tribes. Both settlement frameworks are referred to collectively as the "Settlement

Framework."

The Settlement Framework, among other applicable conditions, provides that payments to states and political subdivisions are

contingent upon the number of states and political subdivisions, including those states and political subdivisions who have not

yet sued the Company, that agree to participate in the Settlement Framework or otherwise have their claims foreclosed within a

prescribed deadline. On December 20, 2022, the Company announced that it had settlement agreements with all 50 states,

including four states that previously settled with the Company, as well as the District of Columbia, Puerto Rico, and three other

.S. t

erritories (the "Settling States"), thus satisfying the initial threshold of required participation by Settling States. The

settlement with the Settling States is now contingent upon, among other applicable terms and conditions, a sufficient number of

political subdivisions also agreeing to participate in the Settlement Framework.

If all conditions for the Settlement Framework, including, but not limited to, the minimum participation thresholds applicable

for political subdivisions are satisfied within the prescribed deadlines, then the Company would expect to pay up to the full

portion of the Settlement Amount attributable to the Settling States, beginning as early as the second quarter of fiscal 2024 and

being completed during fiscal 2024. However, the Company cannot predict if, when, or to what extent the Settlement

Framework will be finalized with any of the Settling States.

In the fourth quarter of fiscal 2023, the Company paid $0.4 billion for separate settlements with Cherokee Nation, New Mexico,

and Florida. Following these payments, the remaining $2.9 billion liability for the Settlement Framework and other settlements

is recorded in accrued liabilities within the Company's Consolidated Balance Sheet as of January 31, 2023.

The Settlement Framework also provides for payments to Native American tribes (excluding Cherokee Nation), contingent

upon the number of tribes, including those tribes that have not yet sued the Company, that agreed to participate in the

Settlement Framework or otherwise have their claims foreclosed within a prescribed deadline (the "Settling Tribes"). Pursuant

to the terms of the Settlement Framework, on March 3, 2023, the Company paid approximately $0.1 billion to the Settling

Tribes in satisfaction of their claims against the Company.

Other Opioid Related Litigation

Company will continue to vigorously defend against any opioid-related litigation not covered or otherwise extinguished by

the Settlement Framework, including, but not limited to, each of the matters described below; any other actions filed by

healthcare providers, individuals, and third-party payers, as well as any action filed by a state, political subdivision, or Native

American tribe that does not agree to the Settlement Framework. Accordingly, the Company has not accrued a liability for these

opioid-related litigation matters nor can the Company reasonably estimate any loss or range of loss that may arise from these

matters. The Company can provide no assurance as to the scope and outcome of any of these matters and no assurance that its

business, financial position, results of operations or cash flows will not be materially adversely affected.

Two-county Trial and MDL Bellwethers. The liability phase of a single, two-county trial in one of the MDL cases resulted in a

jury verdict on November 23, 2021, finding in favor of the plaintiffs as to the liability of all defendants, including the Company.

The abatement phase of the single, two-county trial resulted in a judgment on August 17, 2022, that ordered all three

defendants, including the Company, to pay an aggregate amount of approximately $0.7 billion over fifteen years, on a joint and

several liability basis, and granted the plaintiffs injunctive relief. On September 7, 2022, the Company filed an appeal with the

Sixth Circuit Court of Appeals. The monetary aspect of the judgment is stayed pending appeal, and the injunctive aspect of the

judgment went into effect on February 20, 2023.

The MDL has designated five additional single-county cases as bellwethers to proceed through discovery; however, these five

counties ultimately may elect to participate in the Settlement Framework and receive a portion of the Settlement Amount rather

than go to trial.

DOJ Opioid Civil Litigation. On December 22, 2020, the U.S. Department of Justice (the "DOJ") filed a civil complaint in the

U.S. District Court for the District of Delaware alleging that the Company unlawfully dispensed controlled substances from its

pharmacies and unlawfully distributed controlled substances to those pharmacies. The complaint alleges that this conduct

resulted in violations of the Controlled Substances Act. The DOJ is seeking civil penalties and injunctive relief. The Company

initially moved to dismiss the DOJ complaint on February 22, 2021. After that motion was fully briefed, the DOJ filed an

amended complaint on October 7, 2022. On November 7, 2022, the Company filed a partial motion to dismiss the amended

complaint. That motion remains pending.

Opioid Related Securities Class Actions and Derivative Litigation. In addition, the Company is the subject of two securities

class actions alleging violations of the federal securities laws regarding the Company's disclosures with respect to opioids, filed

in the U.S. District Court for the District of Delaware on January 20, 2021 and March 5, 2021 purportedly on behalf of a class

of investors who acquired Walmart stock from March 30, 2016 through December 22, 2020. Those cases have been

consolidated. On October 8, 2021, the defendants filed a motion to dismiss the consolidated securities action. After the parties

had fully briefed the motion to dismiss, on September 9, 2022, the Court entered an order permitting the plaintiffs to file an

amended complaint, which was filed on October 14, 2022 and which revised the applicable putative class of investors to those

who acquired Walmart stock from March 31, 2017, through December 22, 2020. On November 16, 2022, the defendants filed a

motion to dismiss the amended complaint. That motion remains pending.

Derivative actions were also filed by two of the Company's shareholders in the U.S. District Court for the District of Delaware

on February 9, 2021 and April 16, 2021 alleging breach of fiduciary duties against certain of its current and former directors

with respect to oversight of the Company's distribution and dispensing of opioids and also alleging violations of the federal

securities laws and other breaches of duty by current directors and two current officers in connection with the Company's

opioids disclosures. Those cases have been stayed pending developments in other opioids litigation matters. On September 27,

2021, three shareholders filed a derivative action in the Delaware Court of Chancery alleging that certain members of the

urre

nt Board and certain former officers breached their fiduciary duties in failing to adequately oversee the Company's

prescription opioids business. The defendants moved to dismiss and/or to stay proceedings on December 21, 2021, and the

plaintiffs responded by filing an amended complaint on February 22, 2022. On April 20, 2022, the defendants moved to dismiss

and/or to stay proceedings with respect to the amended complaint. On September 26, 2022, the court held a hearing on that

motion, and a ruling remains pending.

Other Legal Proceedings

sda E

qual Value Claims. Asda, formerly a subsidiary of the Company, was and still is a defendant in certain equal value

claims that began in 2008 and are proceeding before an Employment Tribunal in Manchester in the United Kingdom on behalf

of current and former Asda store employees, as well as additional claims in the High Court of the United Kingdom (the "Asda

Equal Value Claims"). Further claims may be asserted in the future. Subsequent to the divestiture of Asda in February 2021, the

Company continues to oversee the conduct of the defense of these claims. While potential liability for these claims remains

with Asda, the Company has agreed to provide indemnification with respect to certain of these claims up to a contractually

determined amount. The Company cannot predict the number of such claims that may be filed, and cannot reasonably estimate

any loss or range of loss that may arise related to these proceedings. Accordingly, the Company can provide no assurance as to

the scope and outcome of these matters.

Money Transfer Agent Services Matters. The Company has responded to grand jury subpoenas issued by the United States

Attorney's Office for the Middle District of Pennsylvania on behalf of the U.S. Department of Justice (the "DOJ") seeking

documents regarding the Company's consumer fraud prevention program and anti-money laundering compliance related to the

Company's money transfer services, where Walmart is an agent. The most recent subpoena was issued in August 2020. The

Company continues to cooperate with and provide information in response to requests from the DOJ. The Company has also

responded to civil investigative demands from the United States Federal Trade Commission (the "FTC") in connection with the

FTC's investigation related to money transfers and the Company's anti-fraud program in its capacity as an agent. On June 28,

2022, the FTC filed a complaint against the Company in the U.S. District Court for the Northern District of Illinois alleging that

Walmart violated the Federal Trade Commission Act and the Telemarketing Sales Rule regarding its money transfer agent

services and is requesting non-monetary relief and civil penalties. On August 29, 2022, the Company filed a motion to dismiss

the complaint, on October 5, 2022, the FTC responded to the motion, and on October 28, 2022, the Company filed its reply.

The court has entered an order staying discovery pending a decision on the Company's motion to dismiss. The Company intends

to vigorously defend these matters. However, the Company can provide no assurance as to the scope and outcome of these

matters and cannot reasonably estimate any loss or range of loss that may arise. Accordingly, the Company can provide no

assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.

Note 11. Retirement-Related Benefits

The Company offers a 401(k) plan for associates in the U.S. under which eligible associates can begin contributing to the plan

immediately upon hire. The Company also offers a 401(k) type plan for associates in Puerto Rico under which associates can

begin to contribute generally after one year of employment. Under these plans, after one year of employment, the Company

matches 100% of participant contributions up to 6% of annual eligible earnings. The matching contributions immediately vest

at 100% for each associate. Participants can contribute up to 50% of their pre-tax earnings, but not more than the statutory

limits.

Associates in international countries who are not U.S. citizens are covered by various defined contribution post-employment

benefit arrangements. These plans are administered based upon the legislative and tax requirements in the countries in which

they are established.

The following table summarizes the contribution expense related to the Company's defined contribution plans for fiscal 2023,

2022 and 2021:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Defined contribution plans:

U.S. $ 1,491 $ 1,441 $ 1,290

International 74 39 200

Total contribution expense for defined contribution plans

$ 1,565 $ 1,480 $ 1,490

ddi

tionally, the Company's previously owned subsidiary in the United Kingdom sponsored a defined benefit pension plan. In

fiscal 2020, Asda, Walmart and the Trustee of the Asda Group Pension Scheme (the "Plan") entered into an agreement pursuant

to which Asda made a cash contribution of $1.0 billion to the Plan (the "Asda Pension Contribution") which enabled the Plan to

purchase a bulk annuity insurance contract for the benefit of Plan participants, and released the Plan and Asda from any future

obligations. In connection with the sale of Asda, all accumulated pension components of $2.3 billion were included in the

disposal group and the estimated pre-tax loss recognized during the fourth quarter of fiscal 2021 as discussed in Note 8

Note 12

ote

12. Disposals, Acquisitions and Related Items

The following dispositions impact the Company's Walmart International segment. Other immaterial transactions have also

occurred.

Asda

In February 2021, the Company completed the divestiture of Asda, the Company's retail operations in the U.K., for net

consideration of $9.6 billion. Upon closing of the transaction, the Company recorded an incremental pre-tax loss of $0.2 billion

in other gains and losses in its Consolidated Statement of Income in the first quarter of fiscal 2022, primarily related to changes

in the net assets of the disposal group, currency exchange rate fluctuations and customary purchase price adjustments upon

closing. During the first quarter of fiscal 2022, the Company deconsolidated the financial statements of Asda and recognized

its retained investment in Asda as a debt security within other long-term assets and also recognized certain legal and tax

indemnity liabilities within deferred income taxes and other on the Consolidated Balance Sheet.

Asda was classified as held for sale in the Consolidated Balance Sheet as of January 31, 2021, and as a result, the Company

recognized an estimated pre-tax loss of $5.5 billion in other gains and losses in its Consolidated Statement of Income in the

fourth quarter of fiscal 2021. Upon classifying the Asda disposal group as held for sale, $2.3 billion of accumulated pension

components associated with the expected derecognition of the Asda pension plan were included as part of the loss. In

calculating the loss, the fair value of the disposal group was reduced by approximately $0.8 billion related to the estimated fair

value of certain indemnities and other transaction related costs.

Seiyu

In March 2021, the Company completed the divestiture of Seiyu, the Company's retail operations in Japan, for net consideration

of $1.2 billion. Upon closing of the transaction, the Company recorded an incremental pre-tax loss of $0.2 billion in other gains

and losses in its Consolidated Statement of Income in the first quarter of fiscal 2022, primarily related to changes in the net

assets of the disposal group, currency exchange rate fluctuations and customary purchase price adjustments upon closing.

During the first quarter of fiscal 2022, the Company deconsolidated the financial statements of Seiyu and recognized its

retained 15 percent ownership interest in Seiyu as an equity investment within other long-term assets on the Consolidated

Balance Sheet.

Seiyu was classified as held for sale in the Consolidated Balance Sheet as of January 31, 2021, and as a result, the Company

recognized an estimated pre-tax loss of $1.9 billion in other gains and losses in its Consolidated Statement of Income in the

fourth quarter of fiscal 2021.

Walmart Argentina

In November 2020, the Company completed the sale of Walmart Argentina. As a result, the Company recorded a pre-tax loss of

$1.0 billion in the third quarter of fiscal 2021 in other gains and losses in its Consolidated Statement of Income primarily due to

the impact of cumulative translation losses on the carrying value of the disposal group.

Note 13. Segments and Disaggregated Revenue

Segments

The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce websites, located

throughout the U.S., Africa, Canada, Central America, Chile, China, India and Mexico. The Company previously operated in

Argentina prior to the sale of Walmart Argentina in the fourth quarter of fiscal 2021 and operated in the United Kingdom and

Japan prior to the sale of those operations in the first quarter of fiscal 2022. Refer to Note 12

for di

scussion of recent

divestitures. 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 impracticable to segregate and identify revenues for each of these individual products

and services.

The Walmart U.S. segment includes the Company's mass merchant concept in the U.S., as well as eCommerce, which includes

omni-channel initiatives and certain other business offerings such as advertising services through Walmart Connect. 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 eCommerce 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

viewed by its CODM. Information for the Company's segments, as well as for Corporate and support, including the

reconciliation to income before income taxes, is provided in the following table:

(

mounts in millions) Walmart U.S.

Walmart

International Sam's Club

Corporate

and support Consolidated

Fiscal Year Ended January 31, 2023

Net sales $ 420,553 $ 100,983 $ 84,345 $ — $ 605,881

Operating income (loss) 20,620 2,965 1,964 (5,121) 20,428

Interest, net (1,874)

Other gains and (losses) (1,538)

Income before income taxes $ 17,016

Total assets $ 130,659 $ 86,766 $ 15,490 $ 10,282 $ 243,197

Depreciation and amortization 7,054 1,964 609 1,318 10,945

Capital expenditures 11,425 2,625 727 2,080 16,857

Fiscal Year Ended January 31, 2022

Net sales $ 393,247 $ 100,959 $ 73,556 $ — $ 567,762

Operating income (loss) 21,587 3,758 2,259 (1,662) 25,942

Interest, net (1,836)

Loss on extinguishment of debt (2,410)

Other gains and (losses) (3,000)

Income before income taxes $ 18,696

Total assets $ 125,044 $ 91,403 $ 14,678 $ 13,735 $ 244,860

Depreciation and amortization $ 6,773 $ 1,963 $ 601 $ 1,321 10,658

Capital expenditures $ 8,475 $ 2,497 $ 622 $ 1,512 13,106

Fiscal Year Ended January 31, 2021

Net sales $ 369,963 $ 121,360 $ 63,910 $ — $ 555,233

Operating income (loss) 19,116 3,660 1,906 (2,134) 22,548

Interest, net (2,194)

Other gains and (losses) 210

Income before income taxes $ 20,564

Total assets $ 113,490 $ 109,445 $ 13,415 $ 16,146 $ 252,496

Depreciation and amortization 6,561 2,633 599 1,359 11,152

Capital expenditures 6,131 2,436 488 1,209 10,264

al revenues, consisting of net sales and membership and other income, and long-lived assets, consisting primarily of

property and equipment, net and lease right-of-use assets, aggregated by the Company's U.S. and non-U.S. operations for fiscal

2023, 2022 and 2021, are as follows:

iscal Years En

ded January 31,

(Amounts in millions) 2023 2022 2021

Revenues

U.S. operations $ 508,685 $ 470,295 $ 436,649

Non-U.S. operations 102,604 102,459 122,502

Total revenues

$ 611,289 $ 572,754 $ 559,151

Long-lived assets

U.S. operations $ 95,567 $ 89,795 $ 87,068

Non-U.S. operations 23,667 22,829 22,780

Total long-lived assets

$ 119,234 $ 112,624 $ 109,848

o i

ndividual country outside of the U.S. had total revenues or long-lived assets that were material to the consolidated totals.

Long-lived assets related to operations classified as held for sale are excluded from the table above. Additionally, the Company

did not generate material revenues from any single customer.

saggregated 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

digitally and the order is fulfilled through a store or club.

(

mounts in millions) Fiscal Years Ended January 31,

Walmart U.S. net sales by merchandise category 2023 2022 2021

Grocery

$ 247,299 $ 218,944 $ 208,413

General merchandise 118,597 125,876 119,406

Health and wellness 46,591 42,839 38,522

Other categories 8,066 5,588 3,622

Total $ 420,553 $ 393,247 $ 369,963

f W

almart U.S.'s total net sales, approximately $53.4 billion, $47.8 billion and $43.0 billion related to eCommerce for fiscal

2023, 2022 and 2021, respectively.

(

mounts in millions) Fiscal Years Ended January 31,

Walmart International net sales by market 2023 2022 2021

Mexico and Central America

$ 40,496 $ 35,964 $ 32,642

Canada 22,300 21,773 19,991

China 14,711 13,852 11,430

United Kingdom

— 3,811 29,234

Other

23,476 25,559 28,063

Total $ 100,983 $ 100,959 $ 121,360

f W

almart International's total net sales, approximately $20.3 billion, $18.5 billion and $16.6 billion related to eCommerce for

fiscal 2023, 2022 and 2021, respectively.

(

mounts in millions) Fiscal Years Ended January 31,

Sam's Club net sales by merchandise category 2023 2022 2021

Grocery and consumables

$ 53,027 $ 46,822 $ 42,148

Fuel, tobacco and other categories

14,636 10,751 7,590

Home and apparel

9,579 9,037 7,340

Health and wellness

4,248 3,956 3,792

Technology, office and entertainment 2,855 2,990 3,040

Total

$ 84,345 $ 73,556 $ 63,910

f Sa

m's Club's total net sales, approximately $8.4 billion, $6.9 billion and $5.3 billion related to eCommerce for fiscal 2023,

2022 and 2021, respectively.

Note 14. Subsequent Event

Dividends Declared

The Company approved, effective February 21, 2023, the fiscal 2024 annual dividend of $2.28 per share, an increase over the

fiscal 2023 dividend of $2.24 per share. For fiscal 2024, the annual dividend will be paid in four quarterly installments of $0.57

per share, according to the following record and payable dates:

ecord

Date Payable Date

March 17, 2023 April 3, 2023

May 5, 2023 May 30, 2023

August 11, 2023 September 5, 2023

December 8, 2023 January 2, 2024

EM 9.

ANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

INANCIAL

DISCLOSURE

one

ITEM 9A.

NTROLS AND PROCEDURES

val

uation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information, which is

required to be timely disclosed, is accumulated and communicated to management in a timely fashion. In designing and

evaluating such controls and procedures, we recognize that any controls and procedures, no matter how well designed and

operated, can provide only reasonable assurance of achieving the desired control objectives. Our management is necessarily

required to use judgment in evaluating controls and procedures. Also, we have investments in unconsolidated entities. Since

we do not control or manage those entities, our controls and procedures with respect to those entities are substantially more

limited than those we maintain with respect to our consolidated subsidiaries.

In the ordinary course of business, we review our internal control over financial reporting and make changes to our systems and

processes to improve such controls and increase efficiency, while ensuring that we maintain an effective internal control

environment. Changes may include such activities as implementing new, more efficient systems, updating existing systems,

automating manual processes, standardizing controls globally, migrating certain processes to our shared services organizations

and increasing monitoring controls. These changes have not materially affected, and are not reasonably likely to materially

affect, the Company's internal control over financial reporting. However, they allow us to continue to enhance our internal

control over financial reporting and ensure that our internal control environment remains effective.

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the

period covered by this report was performed under the supervision and with the participation of management, including our

Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief

Financial Officer concluded that our disclosure controls and procedures are effective to provide reasonable assurance that

information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of

1934, as amended, is accumulated and communicated to management, including our Chief Executive Officer and Chief

Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable

assurance that such information is recorded, processed, summarized and reported within the time periods specified by the SEC's

rules and forms.

Report on Internal Control Over Financial Reporting

Management has responsibility for establishing and maintaining adequate internal control over financial reporting. Internal

control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles

generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting may not

prevent or detect misstatements. Management has assessed the effectiveness of the Company's internal control over financial

reporting as of January 31, 2023. In making its assessment, management has utilized the criteria set forth by the Committee of

Sponsoring Organizations ("COSO") of the Treadway Commission in Internal Control-Integrated Framework (2013).

Management concluded that based on its assessment, Walmart's internal control over financial reporting was effective as of

January 31, 2023. The Company's internal control over financial reporting as of January 31, 2023, has been audited by Ernst &

Young LLP as stated in their report which appears herein.

Changes in Internal Control Over Financial Reporting

There has been no change in the Company's internal control over financial reporting as of January 31, 2023, that has materially

affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

In the first quarter of fiscal 2024, we will begin upgrading our financial system, including our general ledger and other

applications, in stages. This financial system will continue to be a significant component of our internal control over financial

reporting as it is implemented.

ITEM 9B.

HER INFORMATION

None

ITEM 9C.

DISCL

OSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not

applicable.

ART

III

EM 10.

IRE

CTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ease see the information concerning our executive officers contained in "Item 1. Business

rein under the caption

"Information About Our Executive Officers," which is included in accordance with the Instruction to Item 401 of the SEC's

Regulation S-K.

Information required by this Item 10 with respect to the Company's directors and certain family relationships is incorporated by

reference to such information under the caption "Proposal No. 1 – Election of Directors" included in our Proxy Statement

relating to our 2023 Annual Meeting of Shareholders (our "Proxy Statement").

No material changes have been made to the procedures by which shareholders of the Company may recommend nominees to

our Board of Directors since those procedures were disclosed in our proxy statement relating to our 2022 Annual Shareholders'

Meeting as previously filed with the SEC.

The information regarding our Audit Committee, including our audit committee financial experts, our Reporting Protocols for

Senior Financial Officers and our Code of Conduct applicable to all of our associates, including our Chief Executive Officer,

Chief Financial Officer and our Controller, who is our principal accounting officer, required by this Item 10 is incorporated

herein by reference to the information under the captions "Corporate Governance" and "Proposal No. 4: Ratification of

Independent Accountants" included in our Proxy Statement. "Item 1. Business

bove contains information relating to the

availability of a copy of our Reporting Protocols for Senior Financial Officers and our Code of Conduct and the posting of

amendments to and any waivers of the Reporting Protocols for Senior Financial Officers and our Code of Conduct on our

website.

ITEM 11.

CUTIVE COMPENSATION

information required by this Item 11 is incorporated herein by reference to the information under the captions "Corporate

Governance – Director Compensation" and "Executive Compensation" included in our Proxy Statement.

ITEM 12.

CURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND

LATED STOCKHOLDER MATTERS

information required by this Item 12 is incorporated herein by reference to the information that appears under the caption

"Stock Ownership" included in our Proxy Statement.

ITEM 13.

RTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR

NDE

PENDENCE

information required by this Item 13 is incorporated herein by reference to the information under the caption "Corporate

Governance – Board Processes and Practices" included in our Proxy Statement.

ITEM 14.

RINCIP

AL ACCOUNTING FEES AND SERVICES

information required by this Item 14 is incorporated herein by reference to the information under the caption "Proposal No.

4 – Ratification of Independent Accountants" included in our Proxy Statement.

ART

EM 15.

IBITS, FINANCIAL STATEMENT SCHEDULES

(

) Documents filed as part of this report are as follows:

1. Financial Statements: See the Financial Statements in "Item 8. Financial Statements and Supplementary Data

2. Fi

nancial Statement Schedules:

Certain schedules have been omitted because the required information is not present or is not present in

amounts sufficient to require submission of the schedule, or because the information required is included in

the Consolidated Financial Statements, including the notes thereto.

3. Exhibits:

See exhibits listed under part (b) below.

(b) The required exhibits are filed as part of this Form 10-K or are incorporated by reference herein.

(1)

3.1 Restated Certificate of Incorporation of the Company dated February 1, 2018 is incorporated herein by

ference to Exhibit 3.1 to the Report on Form 8-K filed by the Company on February 1, 2018

.2 Am

ended and Restated Bylaws of the Company dated November 10, 2022 are incorporated herein by

ference to Exhibit 3.1 to the Report on Form 8-K filed by the Company on November 16, 2022

.1 Inde

nture dated as of April 1, 1991, between the Company and J.P. Morgan Trust Company, National

Association, as successor trustee to Bank One Trust Company, NA, as successor trustee to The First National

Bank of Chicago, Trustee, is incorporated herein by reference to Exhibit 4(a) to Registration Statement on

Form S-3 (File Number 33-51344)

(P)

4.2 First Supplemental Indenture dated as of September 9, 1992, to the Indenture dated as of April 1, 1991,

between the Company and J.P. Morgan Trust Company, National Association, as successor trustee to Bank

One Trust Company, NA, as successor trustee to The First National Bank of Chicago, Trustee, is incorporated

herein by reference to Exhibit 4(b) to Registration Statement on Form S-3 (File Number 33-51344)

(P)

4.3 Indenture dated as of December 11, 2002, between the Company and J.P. Morgan Trust Company, National

ssoc

iation, as successor trustee to Bank One Trust Company, NA, is incorporated by reference to Exhibit 4.5

o R

egistration Statement on Form S-3 (File Number 333-101847)

.4 Inde

nture dated as of July 19, 2005, between the Company and J.P. Morgan Trust Company, National

ssoc

iation is incorporated by reference to Exhibit 4.5 to Registration Statement on Form S-3 (File Number

33-126512)

.5 Fi

rst Supplemental Indenture, dated December 1, 2006, between the Company and The Bank of New York

rust

Company, N.A., as successor-in-interest to J.P. Morgan Trust Company, National Association, as

rust

ee, under the Indenture, dated as of July 19, 2005, between the Company and J.P. Morgan Trust

pany, National Association, as Trustee, is incorporated herein by reference to Exhibit 4.6 to Post-

ffe

ctive Amendment No. 1 to Registration Statement on Form S-3 (File Number 333-130569)

.6 Se

cond Supplemental Indenture, dated December 19, 2014, between the Company and The Bank of New York

rust

Company, N.A., as successor-in-interest to J.P. Morgan Trust Company, National Association, as

rust

ee, under the Indenture, dated as of July 19, 2005, between the Company and J.P. Morgan Trust

pany, National Association, as Trustee, is incorporated herein by reference to Exhibit 4.3 to Registration

atement on Form S-3 (File Number 333-201074)

.7 T

hird Supplemental Indenture, dated June 26, 2018, between the Company and The Bank of New York Trust

pany, N.A., as successor-in-interest to J.P. Morgan Trust Company, National Association, as Trustee,

nde

r the Indenture, dated as of July 19, 2005, between the Company and J.P. Morgan Trust Company,

tional Association, as Trustee, is incorporated herein by reference to Exhibit 4(S) to Current Report on

orm

8-K filed on June 26, 2018

4.8* De

scription of Registrant's Securities

0.1* W

almart Inc. Deferred Compensation Matching Plan, as amended and restated effective February 1, 2023

(C)

10.2 W

almart Inc. Management Incentive Plan, as amended effective February 1, 2018 is incorporated by reference

o E

xhibit 10(b) to the Annual Report on Form 10-K of the Company for the fiscal year ended January 31,

018, fi

led on March 30, 2018

(C)

10.3 W

almart Inc. 2016 Associate Stock Purchase Plan, as amended effective February 1, 2018 is incorporated by

ference to Exhibit 10(c) to the Annual Report on Form 10-K of the Company for the fiscal year ended

nuary 31, 2018, filed on March 30, 2018

(C)

10.4 W

almart Inc. Stock Incentive Plan of 2015, as amended effective February 1, 2018 is incorporated by

ference to Exhibit 10(d) to the Annual Report on Form 10-K of the Company for the fiscal year ended

nuary 31, 2018, filed on March 30, 2018

(C)

10.5* W

almart Inc. Supplemental Executive Retirement Plan, as amended and restated effective February 1, 2023

(

10.6 W

almart Inc. Director Compensation Deferral Plan, as amended effective February 1, 2018 is incorporated by

ference to Exhibit 10(f) to the Annual Report on Form 10-K of the Company for the fiscal year ended

nuary 31, 2018, filed on March 30, 2018

(C)

10.7 Form

of Post-Termination Agreement and Covenant Not to Compete with attached Schedule of Executive

ffi

cers who have executed a Post-Termination Agreement and Covenant Not to Compete is incorporated by

ference to Exhibit 10(p) to the Annual Report on Form 10-K of the Company for the fiscal year ended

nuary 31, 2011, filed on March 30, 2011

(

10.7(a

)* Amended Schedule of Executive Officers who have executed a Post-Termination Agreement and Covenant

to Compete in the form filed as Exhibit 10(p) to the Annual Report on Form 10-K of the Company for the

scal year ended January 31, 2011

(C)

10.8 Form

of Walmart Inc. Stock Incentive Plan of 2015 Restricted Stock Notification of Award and Terms and

ondi

tions of Award is incorporated by reference to Exhibit 10.8 to the Annual Report on Form 10-K of the

pany for the fiscal year ended January 31, 2022, filed March 18, 2022

(C)

10.9 Form

of Walmart Inc. Stock Incentive Plan of 2015 Global Share-Settled Performance-Based Restricted Stock

t Notification and Terms and Conditions is incorporated by reference to Exhibit 10.9 to the Annual Report

n Form

10-K of the Company for the fiscal year ended January 31, 2022, filed on March 18, 2022

(

10.10* W

almart Inc. Officer Deferred Compensation Plan, as amended and restated effective February 1, 2023

(C)

10.11 Form

of Share Settled Restricted Stock Unit Notification and Terms and Conditions Awarded to Suresh

ar on July 9, 2019 is incorporated by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q of

Company for the fiscal quarter ended July 31, 2019 filed on September 6, 2019

(C)

10.12 Post

Termination Agreement and Covenant Not to Compete between the Company and Suresh Kumar dated

une

6, 2019 is incorporated herein by reference to Exhibit 10.16 to the Annual Report on Form 10-K for the

scal year ended January 31, 2020 filed on March 20, 2020

(

10.13 Se

paration Agreement between the Company and Marc Lore dated January 26, 2021 is incorporated herein by

ference to Exhibit 10.18 to the Annual Report on Form 10-K for the fiscal year ended January 31, 2021 filed

n Ma

rch 19, 2021

(

10.14 R

etirement Agreement between the Company and M. Brett Biggs dated November 29, 2021 is incorporated

rein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on November 29, 2021

(

10.15 Sha

re Issuance and Acquisition Agreement by and Between Flipkart Private Limited and Walmart Inc. dated

s of Ma

y 9, 2018 is incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of

Company for the fiscal quarter ended July 31, 2018 filed on September 6, 2018 (portions of this exhibit

ve been omitted and filed separately with the SEC pursuant to a request for confidential treatment.)

0.16 C

ounterpart Form of Share Purchase Agreement by and Among Wal-Mart International Holdings, Inc., the

sha

reholders of Flipkart Private Limited identified on Schedule I thereto, Fortis Advisors LLC and Walmart

Inc

. dated as of May 9, 2018 is incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on

Form

10-Q of the Company for the fiscal quarter ended July 31, 2018 filed on September 6, 2018 (portions of

thi

s exhibit have been omitted and filed separately with the SEC pursuant to a request for confidential

tre

atment.)

1* L

ist of the Company's Significant Subsidiaries

3* C

onsent of Independent Registered Public Accounting Firm

1.1* C

hief Executive Officer Section 302 Certification

1.2* C

hief Financial Officer Section 302 Certification

2.1** C

hief Executive Officer Section 906 Certification

2.2** C

hief Financial Officer Section 906 Certification

9.1* C

ertain Federal and State Court Opioids Litigation Case Citations and Currently Scheduled Trial Dates

01.INS*

Inline XBRL Instance Document

101.SCH* Inline XBRL Taxonomy Extension Schema Document

101.CAL* Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF* Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB* Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE* Inline XBRL Taxonomy Extension Presentation Linkbase Document

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith as an Exhibit.

** Furnished herewith as an Exhibit.

(P) This Exhibit was originally filed in paper format. Accordingly, a hyperlink has not been provided.

(1) Certain instruments defining the rights of holders of long-term debt securities of the Registrant are omitted pursuant to Item601(b)(4)(iii) of Regulation

S-K. The Company hereby undertakes to furnish to the SEC, upon request, copies of any such instruments.

ITEM 16.

RM 10-K SUMMARY

one

NATURES

ursua

nt to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this

report to be signed on its behalf by the undersigned, thereunto duly authorized.

Walmart Inc.

Date: March 17, 2023

/s/ C. Douglas McMillon

C. Douglas McMillon

President and Chief Executive Officer

ursua

nt to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following

persons on behalf of the registrant and in the capacities and on the dates indicated:

Date: March 17, 2023

/s/ C. Douglas McMillon

C. Douglas McMillon

President and Chief Executive Officer and Director

(Principal Executive Officer)

Date: March 17, 2023

/s/ Gregory B. Penner

Gregory B. Penner

Chairman of the Board and Director

Date: March 17, 2023

/s/ John David Rainey

John David Rainey

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

Date: March 17, 2023

/s/ David M. Chojnowski

David M. Chojnowski

Senior Vice President and Controller

(Principal Accounting Officer)

gnature Page to Walmart Inc.

Form 10-K for the Fiscal Year Ended January 31, 2023

te: March 17, 2023

/s/ Cesar Conde

Cesar Conde

Director

Date: March 17, 2023 By /s/ Timothy P. Flynn

Timothy P. Flynn

Director

Date: March 17, 2023 By /s/ Sarah Friar

Sarah Friar

Director

Date: March 17, 2023 By /s/ Carla A. Harris

Carla A. Harris

Director

Date: March 17, 2023 By /s/ Thomas W. Horton

Thomas W. Horton

Director

Date: March 17, 2023

By /s/ Marissa A. Mayer

Marissa A. Mayer

Director

Date: March 17, 2023

By /s/ Randall L. Stephenson

Randall L. Stephenson

Director

Date: March 17, 2023

/s/ S. Robson Walton

S. Robson Walton

Director

Date: March 17, 2023

/s/ Steuart L. Walton

Steuart L. Walton

Director

gnature Page to Walmart Inc.

Form 10-K for the Fiscal Year Ended January 31, 2023

xhi

bit 21

Significant Subsidiaries of Walmart Inc.

The following list details certain of the subsidiaries of Walmart Inc. Subsidiaries not included in the list are omitted because, in

the aggregate, they are not significant as permitted by Item 601(b)(21) of Regulation S-K.

bsidiary

Organized or

Incorporated

Percent of Equity

Securities Owned

Name Under Which Doing Business

Other Than Subsidiary's

Wal-Mart Stores East, LP Delaware, U.S. 100% Walmart

Wal-Mart Stores Texas, LLC Delaware, U.S. 100% Walmart

Wal-Mart Property Company Delaware, U.S. 100% NA

Wal-Mart Real Estate Business Trust Delaware, U.S. 100% NA

Sam's West, Inc. Arkansas, U.S. 100% Sam's Club

Sam's East, Inc. Arkansas, U.S. 100% Sam's Club

Sam's Property Company Delaware, U.S. 100% NA

Sam's Real Estate Business Trust Delaware, U.S. 100% NA

Wal-Mart de Mexico, S.A.B. de C.V. Mexico 71% Walmex

Wal-Mart Canada Corp. Canada 100% Walmart

Flipkart Private Limited Singapore 75% Flipkart

Walmart Chile S.A.

(1)

Chile 100% Walmart Chile

Massmart Holdings Ltd. South Africa 100% Massmart

Qomolangma Holdings Ltd. Cayman Islands 100% NA

(

The Company owns substantially all of Walmart Chile.

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bit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Shareholder Investment Plan of Wal-Mart Stores, Inc. Form S-3 File No. 333-02089

(2) Wal-Mart Stores, Inc. Director Compensation Plan Form S-8 File No. 333-24259

(3) Wal-Mart Stores, Inc. 401(k) Retirement Savings Plan Form S-8 File No. 333-29847

(4) Wal-Mart Puerto Rico, Inc., 401(k) Retirement Savings Plan Form S-8 File No. 333-44659

(5) Wal-Mart Stores, Inc. Associate Stock Purchase Plan of 1996 Form S-8 File No. 333-62965

(6) Wal-Mart Stores, Inc. Stock Incentive Plan of 2015, which amended and

restated the 2010 plan

Form S-8 File No. 333-60329

(7) Wal-Mart Profit Sharing and 401(k) Plan Form S-8 File No. 333-109421

(8) Wal-Mart Stores, Inc. Associate Stock Purchase Plan of 1996 Form S-8 File No. 333-109417

(9) Wal-Mart Puerto Rico Profit Sharing and 401(k) Plan Form S-8 File No. 333-109414

(10) Wal-Mart Stores, Inc. Stock Incentive Plan of 2015, which amended and

restated the 2010 plan

Form S-8 File No. 333-128204

(11) Walmart Deferred Compensation Matching Plan Form S-8 File No. 333-178717

(12) Wal-Mart Stores, Inc. Common Stock Form S-3 ASR File No. 333-178385

(13) Walmart 401(k) Plan Form S-8 File No. 333-187577

(14) Wal-Mart Stores, Inc. Associate Stock Purchase Plan Form S-8 File No. 333-214060

(15) Debt Securities of Walmart Inc. Form S-3 ASR File No. 333-251124

(16) Walmart Inc. 2016 Associate Stock Purchase Plan Form S-8 File No. 333-228631

(17) Walmart Inc. Stock Incentive Plan of 2015 Form S-8 File No. 333-228635

(18) Walmart 401(k) Plan Form S-8 File No. 333-233682

of our reports dated March 17, 2023, with respect to the Consolidated Financial Statements of Walmart Inc. and the

effectiveness of internal control over financial reporting of Walmart Inc. included in this Annual Report (Form 10-K) of

Walmart Inc. for the year ended January 31, 2023.

/s/ Ernst & Young LLP

Rogers, Arkansas

March 17, 2023

xhi

bit 31.1

I, C. Douglas McMillon, certify that:

1. I have reviewed this Annual Report on Form 10-K of Walmart Inc. (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a

material fact necessary to make the statements made, in light of the circumstances under which such statements

were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as of,

and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial

reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the registrant, including its

consolidated subsidiaries, is made known to us by others within those entities, particularly during the period

in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of

financial reporting and the preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report

our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period

covered by this report, based on such evaluations; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred

during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to

materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control

over financial reporting, to the registrant's auditors and the Audit Committee of registrant's Board of Directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process,

summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant

role in the registrant's internal control over financial reporting.

Date: March 17, 2023 /s/ C. Douglas McMillon

C. Douglas McMillon

President and Chief Executive Officer

xhi

bit 31.2

I, John David Rainey, certify that:

1. I have reviewed this Annual Report on Form 10-K of Walmart Inc. (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a

material fact necessary to make the statements made, in light of the circumstances under which such statements

were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as of,

and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial

reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the registrant, including its

consolidated subsidiaries, is made known to us by others within those entities, particularly during the period

in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of

financial reporting and the preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report

our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period

covered by this report, based on such evaluations; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred

during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to

materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control

over financial reporting, to the registrant's auditors and the Audit Committee of registrant's Board of Directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process,

summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant

role in the registrant's internal control over financial reporting.

Date: March 17, 2023 /s/ John David Rainey

John David Rainey

Executive Vice President and Chief Financial Officer

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bit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350 (AS ADOPTED

PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002)

In connection with the Annual Report of Walmart Inc. (the "Company") on Form 10-K for the period ending January 31,

2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, C. Douglas McMillon,

President and Chief Executive Officer of the Company, certify to my knowledge and in my capacity as an officer of the

Company, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as

amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of

operations of the Company as of the dates and for the periods expressed in the Report.

IN WITNESS WHEREOF, the undersigned has executed this Certificate, effective as of March 17, 2023.

/s/ C. Douglas McMillon

C. Douglas McMillon

President and Chief Executive Officer

xhi

bit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350 (AS ADOPTED

PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002)

In connection with the Annual Report of Walmart Inc. (the "Company") on Form 10-K for the period ending January 31,

2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John David Rainey, Executive

Vice President and Chief Financial Officer of the Company, certify to my knowledge and in my capacity as an officer of the

Company, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as

amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of

operations of the Company as of the dates and for the periods expressed in the Report.

IN WITNESS WHEREOF, the undersigned has executed this Certificate, effective as of March 17, 2023.

/s/ John David Rainey

John David Rainey

Executive Vice President and Chief Financial Officer

[THIS PAGE INTENTIONALLY LEFT BLANK]

Corporate and Stock Information

Listing

New York Stock Exchange

Stock Symbol: WMT

Corporate Information

Stock Registrar and Transfer Agent:

Computershare Trust Company, N.A.

P.O. Box 43006

Providence RI 02940-3006

1-800-438-6278

TDD for hearing-impaired inside the U.S. 1-800-952-9245

Internet: h ttp://ww w.computershare.com

Annual Meeting

Our 2023 Annual Shareholders’ Meeting will be held on Wednesday,

May 31, 2023 at 10:30am CDT in a virual meeting format only, with

no physical in-person meeting. Our Annual Shareholders’ Meeting

will be available for viewing at ww w.virualshareholdermeeting.com/

WMT2023.

Communication with Shareholders

Walmar Inc. periodically communicates with our shareholders and

other members of the investment community about our operations.

For furher information regarding our policy on shareholder and

investor communications refer to our website, ww w.stock.walmar.com.

The following repors are available without charge upon request

bywriting the company c/o Investor Relations or by emailing

I R@walmar . com. These repors are also available via the

corporatewebsite.

• Annual Repor on Form 10-K

• Quarerly Repors on Form 10-Q

• Earnings Releases

• Current Repors on Form 8-K

• Annual Shareholders’ Meeting Proxy Statement

• Environmental, Social and Governance Repor

• Culture, Diversity, Equity & Inclusion Repor

Independent Registered Public Accounting Firm

Ernst & Young LLP

5417 Pinnacle Point Dr., Suite 501

Rogers, AR 72758

Market Price of Common Stock

The high market price and low market price per share for the

Company’s common stock for each fiscal quarer in fiscal 2023

and2022 were as follows:

2023 2022

High Low High Low

st Quarer $. $. $. $.

nd Quarer . . . .

rd Quarer . . . .

th Quarer . . . .

The high market price and low market price per share for the

Company’s common stock for the first fiscal quarer of fiscal 2024,

were as follows:

2024

High Low

1st Quarer

(1)

$. $.

(1)

Through March 15, 2023

Dividends Payable Per Share

For fiscal 2024, dividends will be paid based on the following schedule:

April 3, 2023 $0.57

May 30, 2023 0.57

September 5, 2023 0.57

January 2, 2024 0.57

Dividends Payable Per Share

For fiscal 2023, dividends were paid based on the following schedule:

April 4, 2022 $0.56

May 31, 2022 0.56

September 6, 2022 0.56

January 3, 2023 0.56

Dividends Payable Per Share

For fiscal 2022, dividends were paid based on the following schedule:

April 5, 2021 $0.55

June 1, 2021 0.55

September 7, 2021 0.55

January 3, 2022 0.55

Stock Perormance Char

This graph compares the cumulative total shareholder return

onWalmar’s common stock during the five fiscal years ending

through fiscal 2023 to the cumulative total returns on the S&P 500

Retailing Index and the S&P 500 Index. The comparison assumes

$100 was invested on February 1, 2018, in shares of our common

stock and in each of the indices shown and assumes that all of the

dividends were reinvested.

Comparison of 5-Year Cumulative Total Return*

Among Walmar Inc., the S&P 500 Index and S&P 500 Retailing Index

(Fiscal Years Ended January 31)

* Assumes $100 Invested on February 1, 2018

Assumes Dividends Reinvested

Fiscal Year Ended January 31, 2023

Fiscal Years Ended January 31,

     

Walmar Inc. $. $ . $. $. $. $.

S&P  Index . . . . . .

S&P 

Retailing Index

. . . . . .

Holders of Record of Common Stock

As of March 15, 2023, there were 205,465 holders of record of

Walmar’s common stock.

$250

$200

$100

$150

$ 50

$ 0

20232018 2019 2020 20222021

Fiscal Years

S&P 500 Retailing IndexS&P 500 IndexWalmart Inc.

Comparison of 5-Year Cumulative Total Return – 2022

ESG Themes and Priority Issues

Opportunity

• Good jobs and advancement for associates

• Equity and inclusion at Walmart and beyond

• Growth for suppliers, sellers and local economies

Sustainability

• Climate & renewable energy leadership

• Zero waste in operation, products and packaging

• Regeneration of natural resources: forests, land & oceans

• Sustainable product supply chains

• Dignity of people in supply chains

Community

• Serving communities

• Access to safer, healthier food, products & services

• Disaster preparedness and relief

Ethics & integrity

• Highest ethical & compliance standards

• Strong corporate governance

• Engagement in public policy

• Digital citizenship

• Respect for human rights

~75% of U.S. product net sales dollars

represented by suppliers reporting to

Project Gigaton

for the most recent year

>750 million metric tons CO₂e

emissions reduced or avoided

reported by suppliers cumulatively

since 2017 through Project Gigaton

Achieved the highest level of women

and people of color in senior leadership

roles in the U.S. since 2020

Raised average U.S. hourly wage to

more than $17.00

Donated more than 665 million pounds

of food to help fight hunger in the U.S.

>180,000 U.S. associates were promoted

to jobs of greater responsibility and

higher pay

ESG Accomplishments FY23