Conduct a financial analysis on Walmart

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3. Section 3: Assets
a. Record the following weekly market activity for the company’s stock for the previous year (any day such as Friday, Monday etc.). Make sure to record:
i. Closing price
ii. One source: search online for yahoo finance, click on quotes & info, type in your company name – follow instructions on web page, click on search, click on historical data, click on daily – change to weekly, click on apply, get close price.
iii. Analyze, evaluate, and discuss the information
b. List the total of Property, Plant, and Equipment for the years covered in your annual report
i. List the total of Accumulated Depreciation associated with Property, Plant, and Equipment for 2 years listed in your annual report
ii. List the total of all assets for 2 years listed in the annual report
iii. List the total of the current assets for 2 years listed in the annual report
iv. As shown in the balance sheet, has your company had significant changes in asset structure, such as major purchases of other companies, investments, or discontinued operations?
v. Identify the method or methods used by your company to value the inventories.
1. List the total dollar value of the inventory for 2 years on balance sheet presented in the annual report.
2. Compute the percentage of inventories to total assets for 2 years of your annual report’s balance sheets and assess the results.
c. List the Cost of Goods Sold and the Gross Profit for your company for 2 years in income statement appearing in the annual report.
i. Calculate the percentage of Cost of Goods Sold to Net Sales and the percentage of Gross Profit to Net Sales for 2 periods and assess the results
d. Analyze/assess/discuss your findings

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Providing opportunity & serving our communities 2018 ANNUAL REPORT $250B 250,000+ U.S. associates graduated from Walmart Academy Commitment to purchase products that support American jobs 1 Gigaton $35M+ Commitment to work with suppliers to reduce emissions in the value chain Donated to 2017 hurricane relief Walmart Inc. (NYSE: WMT) 702 S.W. 8th Street Bentonville, Arkansas 72716 USA 479-273-4000 walmart.com The minimized environmental footprint of this report is the result of an extensive, collaborative effort of Walmart and our supply chain partners. The environmental and social impact continues to be an important consideration. It is printed on paper from well-managed forests containing recycled PCW fiber that is Elementally Chlorine Free (ECF). It is printed using environmental manufacturing principles that were utilized in the printing process. These practices include environmentally responsible procurement, lean manufacturing, green chemistry principles, the recycling of residual materials and reduced volatile organic compound inks and coatings. 2018 Annual Report For more information, please see our Global Responsibility Report at: corporate.walmart.com/global-responsibility ACCELERATING INNOVATION 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 505000 Louisville, Kentucky 40233-5000 1-800-438-6278 TDD for hearing-impaired inside the U.S. 1-800-952-9245 Internet: http://www.computershare.com $500.3 billion Total Revenue Annual Meeting Our Annual Meeting of Shareholders will be held on Wednesday, May 30, 2018 at 10:00 a.m. (Central Time) in the John Q. Hammons Center, Rogers, Arkansas. Communication With Shareholders Walmart Inc. periodically communicates with its shareholders and other members of the investment community about our operations. For further information regarding our policy on shareholder and investor communications refer to our website: www.stock.walmart.com. $28.3 billion Operating Cash Flow The following reports are available without charge upon request by ­writing the Company c/o Investor Relations or by calling (479) 273-8446. These reports are also available via the corporate website. $14.4 billion cash returned to shareholders through dividends and share repurchases $11.5 billion Walmart U.S. eCommerce sales $10.1 billion Capital Expenditures • Annual Report on Form 10-K • Quarterly Reports on Form 10-Q • Earnings Releases • Current Reports on Form 8-K • Annual Shareholders’ Meeting Proxy Statement • Global Responsibility Report • Culture, Diversity & Inclusion Report Dividends Paid Per Share For fiscal 2018, dividends were paid based on the following schedule: April 3, 2017 $0.51 June 5, 2017 0.51 September 5, 2017 0.51 January 2, 2018 0.51 For fiscal 2017, dividends were paid based on the following schedule: April 4, 2016 $0.50 June 6, 2016 0.50 September 6, 2016 0.50 January 3, 2017 0.50 Stock Performance Chart This graph compares the cumulative total shareholder return on Walmart’s common stock during the five fiscal years ending in fiscal 2018 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, 2013, 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 Walmart Inc. Independent Registered Public Accounting Firm Ernst & Young LLP 5417 Pinnacle Point Dr., Suite 501 Rogers, AR 72758 $300 Market Price of Common Stock The high market price and low market price per share for the Company’s common stock for each fiscal quarter in fiscal 2018 and 2017 were as follows: $100 $250 $200 $150 2018 270 million customers a week over 11,700 stores operating in 28 countries 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter High 2017 Low $ 75.77 $ 66.04 80.47 73.13 89.11 77.50 109.98 87.00 High Low $ 70.08 $ 62.35 74.35 62.72 75.19 67.07 72.48 65.28 The high market price and low market price per share for the Company’s common stock for the first fiscal quarter of fiscal 2019, were as follows: 2019 1st Quarter(1) (1) Through March 28, 2018. 2 | WALMART S&P 500 Retailing Index $350 $ 50 $ 0 2013 2014 2015 High $106.56 Low $85.28 2016 2017 2018 Fiscal Years Fiscal Years Ended January 31, Serve nearly S&P 500 Index *A ssumes $100 Invested on February 1, 2013 Assumes Dividends Reinvested Fiscal Year Ending January 31, 2018 Fiscal Years Ended January 31, 2013 2014 2015 2016 2017 2018 Walmart Inc. $100.00 $109.39 $127.58 $102.39 $105.97 $173.61 S&P 500 Index 100.00 121.52 138.80 137.88 165.51 209.22 S&P 500 Retailing Index 100.00 127.72 153.64 184.32 218.76 321.37 Holders of Record of Common Stock As of March 28, 2018, there were 229,858 holders of record of Walmart’s common stock. Designed and produced by Corporate Reports Inc./Atlanta   www.cricommunications.com Walmart by the numbers Dividends Payable Per Share For fiscal 2019, dividends will be paid based on the following schedule: April 2, 2018 $0.52 June 4, 2018 0.52 September 4, 2018 0.52 January 2, 2019 0.52 CEO LETTER Dear shareholders, associates and customers: Recently I was talking to Chad Daggett about his experience leading our Sam’s Club in Bangor, Maine (he was recently promoted to a new role). Chad’s club had a good year and we were recognizing him for his servant leadership in the club and the community. He was quick to give credit to his team and said, “If you treat people like they make a difference, they will.” In that moment, he captured what makes our company unique: it’s our people, our culture, our purpose and our values that make the difference for our business and have enabled our success since the start. And those are the things that will empower our success in the future. We’ve had an exciting year at Walmart. We have the right strategy and we’re making progress putting our unique assets to work to serve customers in all the ways they want to shop. We are confident in our strategy because customers are responding. We are confident in our ability to execute the strategy because we have the culture, the talent and the resources not only to deliver the current plan, but also to dream of new things and new ways to transform our business. We will delight customers in ways they might not have even thought of yet. We’re out to provide an easy, fast, friendly and fun shopping experience for them whether they shop with us in stores, online, via a mobile device, with their voice or with virtual reality, augmented reality or whatever comes next. This year we made great progress accelerating innovation to save customers both money and time. In our stores, we’re digitizing experiences to make it easier for customers to shop and more efficient for associates to manage inventory and perform routine tasks. Our eCommerce business continues to scale as we launch new ways to enhance the customer experience. We’re moving faster, getting stronger and we have good momentum throughout the business. Last fiscal year we reached more than $500 billion in revenue for the first time as a company. Walmart U.S. delivered the highest comp sales growth in nine years and U.S. eCommerce sales grew 44 percent. Walmart International had 10 of 11 markets post positive comp sales for the year and five of those markets grew comp sales by more than 5 percent. Sam’s Club comp sales continue to improve and the business is repositioned to capitalize on future growth. We have a strong foundation and great opportunities to better serve customers. I’m excited about what the future holds. HERE’S MORE ABOUT WHAT WE’VE BEEN UP TO: First, we know our customers’ lives are busier than ever before, so our first objective is to make every day easier for them. They rely on us for low prices and they want us to save them time. We’re leveraging our stores as a strategic advantage in new ways. This past year, we nearly doubled the number of stores offering online grocery pickup to more than 1,100 locations in the U.S. and we’ll add another 1,000 locations in fiscal 2019. We’re expanding online grocery in Canada, Mexico and China as well. We’re also broadening our delivery capabilities in the U.S., China and other international markets. For example, through our partnership with JD Daojia in China, we offer grocery delivery in less than one hour in over 160 stores in China. We launched an express checkout experience in pharmacy, money services, and returns at Walmart U.S. Sam’s Club Scan & Go has been well-received by members and we’ve introduced this capability in certain Walmart U.S. stores as well as in Canada. We launched free 2-day shipping and easy reorder on Walmart.com and the response has been strong. Sam’s Club also enhanced the value of the Plus membership with the offer of free shipping. Our eCommerce assortment has also improved. In the U.S., we’ve doubled the number of items on Walmart.com over the past year. Jet.com continues to complement Walmart.com nicely with its appeal to higher-income, urban, millennial customers. Acquisitions like Bonobos bring unique, private branded products to our shopping experience, and relationships with partners like Lord & Taylor enable us to offer brands and experiences that complement our own assortment. We’re also partnering with Google on personalized voice shopping. Outside the U.S., we launched eCommerce marketplaces in Canada and Mexico so that customers have access to more of the general merchandise assortments they desire. Overall, it’s a lot easier to shop with Walmart today than it used to be. And, we’re going to keep getting better as we focus on serving customers seamlessly across our apps, sites and stores. Nearly Stores 2X the spend eCommerce Customers who shop in store and become eCommerce customers spend nearly twice as much overall. Second, we’re changing how we work to become more efficient. We’re equipping and empowering our associates to be successful with better information, tools and training. In stores, this means our associates are spending more time driving sales and less time doing repetitive tasks. We’ve opened training academies to further develop the retail skills of our associates and we’ve deployed new technology and apps to help them improve in-stock levels and better manage price changes. We’re also testing shelf-scanning technology in stores and distribution centers to handle routine tasks. We will compete with technology, but we will win with our people. We’re creating a high-performance culture that rewards achievements and fosters accountability while remaining true to our core values. A YEAR OF ACCELERATED INNOVATION JANUARY Launched 2-day free shipping on Walmart.com for orders over $35 2 | WALMART FEBRUARY Walmart U.S. mobile express money and pharmacy services launched MARCH Acquired ModCloth APRIL Introduced pickup discount on Walmart.com MAY Launched Sam’s Club Global Flagship Store on JD.com in China JUNE Acquired Bonobos CEO LETTER The investments we’re making are critical to winning with customers as we’re focused on delivering results and operating with discipline. An everyday low cost mindset is core to who we are as a company and it helps fuel the productivity loop enabling lower prices for customers. We’re laser-focused on improving productivity throughout the organization and leveraging expenses as a company. We’re also being more strategic with capital allocation to deliver strong efficient growth. We’re prioritizing eCommerce, store remodels and customer initiatives like online grocery over new store openings. In addition, we’ve made strategic choices around our portfolio including closing certain stores and clubs and winding-down the first party eCommerce business in Brazil. These decisions are positioning the business for more efficient, sustainable growth in the future. Finally, we want to be the most trusted retailer. We believe in the concept of shared value where Walmart operates for the benefit of not just customers, associates and shareholders, but all stakeholders including suppliers, communities and society in general. It’s important for us to do things ethically and the right way. Customers trust us for low prices on quality merchandise. They also want the products they buy to be good for the planet and the people who made them so we’ve invested to promote the safety and dignity of the people who make the products we sell. We’ve also implemented leading technologies in our stores and supply chain to promote the highest freshness, quality and safety in the food we sell, while at the same time improving the safety of our operations worldwide. JULY Opened new eCommerce fulfillment center in Florida AUGUST Google partnership to deliver personalized voice shopping SEPTEMBER 1,000th Online Grocery location in Walmart U.S. Many of our customers also value the role we play in their communities. We provide good jobs for our associates with opportunity to build a career with Walmart. Earlier this year, we increased the starting wage for our U.S. associates to $11 per hour and expanded maternity and parental leave for salaried and hourly associates. Families are a priority to us and connecting with and caring for a new family member is obviously important. We’re working hard to provide opportunities for associates to be successful at Walmart or wherever their careers take them. We’re also ready to support the communities we serve during times of crisis. I could not be more proud of the resolve our associates displayed this past year in responding to the devastating damage caused by the hurricanes in Puerto Rico, Texas and Florida and the earthquake in Mexico. The character of our people was on full display. We believed they would make a difference and they did not disappoint. In addition, we’re enhancing the environmental sustainability of our operations and we’re investing to make our supply chain more transparent. It’s really all about being true to our purpose: we save people money so they can live better. Thanks for your continued interest in our company and for investing in our future. We’re well-positioned to win—we have the plan, we have the assets, and most importantly, we have the people who are hungry to make a difference and innovate for customers in new ways. This is a great time to be at Walmart. I am excited for the year and what we will accomplish. Sincerely, Doug McMillon President and Chief Executive Officer Walmart Inc. OCTOBER New membership sign-up process at Sam’s Club NOVEMBER Expanded one-hour grocery delivery to nearly 140 stores in China DECEMBER Announced our name change to Walmart Inc. 2018 ANNUAL REPORT | 3 CFO MESSAGE Winning with customers and shareholders It’s an exciting time at Walmart as we’re transforming the business to serve customers more effectively. Customers are busier than ever, so we’re innovating and leveraging technology to save them time as well as money. Our financial strength provides the flexibility to win with both customers and shareholders. For customers, we’ve invested in initiatives such as online grocery, mobile express checkout in our stores, and free 2-day shipping for orders over $35 from Walmart.com. We made acquisitions to improve our online assortment and we’re partnering with others, like Google and JD.com, in new ways. At the same time, we provided solid cash returns to shareholders through a meaningful and growing dividend and continued share repurchases. We’re incredibly well-positioned with unique assets to win in this new age of retail and the fiscal 2018 results reflect Walmart’s strong financial position: • Total revenue surpassed $500 billion for the first time; • Walmart U.S. comp sales were the highest since fiscal 2009; • Walmart U.S. eCommerce sales grew 44 percent; • Operating cash flow was $28.3 billion, and; • We returned $14.4 billion to shareholders through dividends and share repurchases. Our financial framework helps guide decisions as we grow the business. The three key elements are: strong, efficient growth; consistent operating discipline; and strategic capital allocation. STRONG, EFFICIENT GROWTH. We’re focused on our most productive and profitable growth opportunities by prioritizing growth from comp sales and eCommerce versus opening new stores. We’ve seen good momentum with each of our segments delivering strong comp sales growth this past year. The customer experience in our stores has improved as we’re making shopping easy, fast, friendly and fun. Walmart U.S. eCommerce sales growth was also strong and we’re focused on continuing to accelerate eCommerce innovation and omni-channel offerings to provide the convenience customers expect. 4 | WALMART CONSISTENT OPERATING DISCIPLINE. The everyday low prices we provide to customers are enabled when we operate at everyday low costs. We’ve made headway in cost of goods efficiencies and working capital productivity with strong inventory management. Expenses are not where we want them to be overall, but we started bending the cost curve last year, particularly in Walmart U.S. stores and in International. We’re changing how we work by improving processes and increasingly using technology and automation to be more productive, especially in support functions. We’ll continue to make smart investments that help us grow faster and compete more effectively to win long-term. STRATEGIC CAPITAL ALLOCATION. Walmart generates substantial cash and we’ve aligned our capital priorities with the long-term strategy. Our first priority is to invest in growing the business efficiently. We’re being more disciplined and thoughtful with every dollar of capital, which led to a decline in capital expenditures in fiscal 2018. We’ve shifted spend from opening new stores to remodels, eCommerce, supply chain and technology to set us up for the future. We’ll continue to invest in customer initiatives like online grocery, pickup towers, and an expansion of grocery delivery. We’ll also be opportunistic with M&A while being open to taking action on assets within our portfolio to simplify the business. Secondly, our dividend is important and we’ve increased it for 45 consecutive years. Finally, we’re committed to the share repurchase program we announced last October as we continue to believe in the long-term value of Walmart. We’re confident that over time, these financial priorities will help us drive sustainable top line and bottom line growth, and generate solid returns for shareholders. In closing, we’re executing our strategy, we’re delivering results and we’re doing this from a base of incredible financial strength. We’re committed to growing the value of the company for our shareholders while we win with customers. Thanks for your investment in Walmart. Sincerely, Brett Biggs Executive Vice President and Chief Financial Officer Walmart Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-K ___________________________________________ ý Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended January 31, 2018, or ¨ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 001-6991. ___________________________________________ WALMART INC. (Exact name of registrant as specified in its charter) ___________________________________________ Delaware 71-0415188 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 702 S.W. 8th Street Bentonville, Arkansas 72716 (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 Name of each exchange on which registered Common Stock, par value $0.10 per share 1.900% Notes Due 2022 2.550% Notes Due 2026 New York Stock Exchange New York Stock Exchange New York Stock Exchange Securities 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 Indicate 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes ý No ¨ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨ 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 Non-Accelerated Filer ý o Accelerated Filer Smaller Reporting Company Emerging Growth Company o o o 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý As of July 31, 2017, 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 31, 2017, was $114,770,199,895. 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 2,950,696,818 shares of common stock outstanding as of March 28, 2018. 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 30, 2018 (the "Proxy Statement") Part III Walmart Inc. Form 10-K For the Fiscal Year Ended January 31, 2018 Table of Contents Page Part I Item 1 Item 1A Item 1B Item 2 Item 3 Item 4 Business Risk Factors Unresolved Staff Comments Properties Legal Proceedings Mine Safety Disclosures 7 17 26 27 29 30 Part II Item 5 Item 6 Item 7 Item 7A Item 8 Item 9 Item 9A Item 9B Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information 31 33 34 48 51 85 85 86 Part III Item 10 Item 11 Item 12 Item 13 Item 14 Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services 87 87 87 87 87 Exhibits, Financial Statement Schedules Signatures Exhibit Index 88 88 90 Part IV Item 15 WALMART INC. (formerly "WAL-MART STORES, INC.") ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED JANUARY 31, 2018 On February 1, 2018, the legal name of our corporation became "Walmart Inc.," changing from "Wal-Mart Stores, Inc." 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 30, 2018 and in the exhibits to this Annual Report on Form 10-K to "Walmart Inc.," "Wal-Mart Stores, Inc.," "Walmart," "the Company," "our Company," "we," "us" and "our" are to the Delaware corporation named "Wal-Mart Stores, Inc." prior to February 1, 2018 and named "Walmart Inc." commencing on February 1, 2018 and, except where expressly noted otherwise or the context otherwise requires, that corporation's consolidated subsidiaries. PART I Cautionary 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. Nature of Forward-Looking Statements Such 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 relate to: • the growth of our business or change in our competitive position in the future or in or over particular periods; • the amount, number, growth or increase, in or over certain periods, of or in certain financial items or measures or operating measures, including our earnings per share, including as adjusted for certain items, net sales, comparable store and club sales, our Walmart U.S. operating segment's eCommerce sales, liabilities, expenses of certain categories, expense leverage, returns, capital and operating investments or expenditures of particular types, new store openings and investments in particular formats; • investments and capital expenditures we will make and how certain of those investments and capital expenditures are expected to be financed; • our plans to increase investments in eCommerce, technology, store remodels and other customer initiatives, such as online grocery locations; • volatility in currency exchange rates and fuel prices affecting our or one 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 and finance our operations, expansion activities, dividends and share repurchases, to meet our cash needs and to fund our domestic operations without repatriating earnings we hold outside of the United States; • our intention to reinvest the earnings we hold outside of the United States in our foreign operations and certain laws, other limitations and potential taxes on anticipated future repatriations of such earnings not materially affecting our liquidity, financial condition or results of operations; • the insignificance of ineffective hedges and 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 effect of adverse decisions in, or settlement of, litigation or other proceedings to which we are subject; or • the effect on the Company's results of operations or financial condition of the Company's adoption of certain new, or amendments to existing, accounting standards. 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," 4 "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 include statements made in Part I, Item 3. "Legal Proceedings" in this Annual Report on Form 10-K as to our belief that the possible loss or range of any possible loss that may be incurred in connection with certain legal proceedings will not be material to our financial condition, results of operations, or liquidity. Risks Factors and Uncertainties Affecting Our Business Our business operations are subject to numerous risks, factors and uncertainties, domestically and internationally, outside of our control. One, or a combination, of these risks, factors and uncertainties could materially affect any of those matters as to which we have made forward-looking statements and cause our actual results or an actual event or occurrence to differ materially from those results or an event or occurrence described in a forward-looking statement. These risks, factors and uncertainties, which may be global in their effect or affect only some of the markets in which we operate and which may affect us on a consolidated basis or affect only some of our reportable segments, include, but are not limited to: Economic Factors • economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates; • currency exchange rate fluctuations; • changes in market rates of interest; • changes in market levels of wages; • changes in the size of various markets, including eCommerce markets; • unemployment levels; • inflation or deflation, generally and in certain product categories; • transportation, energy and utility costs; • commodity prices, including the prices of oil and natural gas; • consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels, and demand for certain merchandise; • trends in consumer shopping habits around the world and in the markets in which Walmart operates; • consumer enrollment in health and drug insurance programs and such programs' reimbursement rates and drug formularies; and • initiatives of competitors, competitors' entry into and expansion in Walmart's markets, and competitive pressures; Operating Factors • the amount of Walmart's net sales and operating expenses denominated in U.S. dollar and various foreign currencies; • the financial performance of Walmart and each of its segments, including the amounts of Walmart's cash flow during various periods; • Walmart's need to repatriate earnings held outside of the U.S. and changes in U.S. and international tax regulations; • customer traffic and average ticket in Walmart's stores and clubs and on its eCommerce platforms; • the mix of merchandise Walmart sells and its customers purchase; • the availability of goods from suppliers and the cost of goods acquired from suppliers; • the effectiveness of the implementation and operation of Walmart's strategies, plans, programs and initiatives; • Walmart's ability to successfully integrate acquired businesses, including within the eCommerce space; • the amount of shrinkage Walmart experiences; • consumer acceptance of and response to Walmart's stores and clubs, digital platforms, programs, merchandise offerings and delivery methods; • Walmart's gross profit margins, including pharmacy margins and margins of other product categories; • the selling prices of gasoline and diesel fuel; • disruption of seasonal buying patterns in Walmart's markets; • Walmart's expenditures for Foreign Corrupt Practices Act ("FCPA") and other compliance-related matters including the adequacy of our accrual for the FCPA matter; • disruptions in Walmart's supply chain; • cybersecurity events affecting Walmart and related costs and impact of any disruption in business; • Walmart's labor costs, including healthcare and other benefit costs; • Walmart's casualty and accident-related costs and insurance costs; • the size of and turnover in Walmart's workforce and the number of associates at various pay levels within that workforce; • the availability of necessary personnel to staff Walmart's stores, clubs and other facilities; 5 • • • • • unexpected changes in Walmart's objectives and plans; developments in, and the outcome of, legal and regulatory proceedings and investigations to which Walmart is a party or is subject, and the liabilities, obligations and expenses, if any, that Walmart may incur in connection therewith; changes in the credit ratings assigned to the Company's commercial paper and debt securities by credit rating agencies; Walmart's effective tax rate; and unanticipated changes in accounting judgments and estimates; Regulatory and Other Factors • changes in existing tax, labor and other laws and changes in tax rates, including the enactment of laws and the adoption and interpretation of administrative rules and regulations; • adoption or creation of new, and modification of existing, governmental policies, programs and initiatives in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; • the possibility of the imposition of new taxes on imports and new tariffs and trade restrictions and changes in tariff rates and trade restrictions; • changes in currency control laws; • changes in the level of public assistance payments; • the timing of federal income tax refunds; • natural disasters, public health emergencies, civil disturbances, and terrorist attacks; and • changes in generally accepted accounting principles in the United States. We typically earn a disproportionate part of our annual operating income in the fourth quarter as a result of seasonal buying patterns, which patterns are difficult to forecast with certainty and can be affected by many factors. Other Risk Factors; No Duty to Update The above list of factors that may affect the estimates and expectations discussed in or implied or contemplated by forwardlooking statements we make or made on our behalf is not exclusive. We are subject to other risks discussed under the caption "Item 1A. Risk Factors," and that we may discuss in Management's Discussions and Analysis of Financial Condition and Results of Operations and in risks that may be discussed under "Part II, Item 1A. Risk Factors" and "Part I, Item 2. Management's Discussions and Analysis of Financial Condition and Results of Operations" appearing in our Quarterly Reports on Form 10-Q or may otherwise be disclosed in our Quarterly Reports on Form 10-Q and other reports filed with the SEC. Investors and other readers are urged to consider all of these risks, uncertainties and other factors carefully in evaluating our forward-looking statements. The forward-looking statements that we make or 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 forwardlooking 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 forwardlooking 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. 6 ITEM 1. BUSINESS General Walmart Inc. ("Walmart," the "Company" or "we") helps people around the world save money and live better – anytime and anywhere – in retail stores and through eCommerce. Through innovation, we are striving to create 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 nearly 270 million customers who visit our more than 11,700 stores and numerous eCommerce websites under 65 banners in 28 countries. Our strategy is to lead on price, invest to differentiate on access, be competitive on assortment and deliver a great experience. Leading on price is designed to 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. Price leadership is core to who we are. Everyday low cost ("EDLC") is our commitment to control expenses so those cost savings can be passed along to our customers. Our omni-channel presence provides customers access to our broad assortment anytime and anywhere. We strive to give our customers and members a great digital and physical shopping experience. 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, 2018 ("fiscal 2018"), January 31, 2017 ("fiscal 2017") and January 31, 2016 ("fiscal 2016"). During fiscal 2018, we generated total revenues of $500.3 billion, which was primarily comprised of net sales of $495.8 billion. We maintain our principal offices at 702 S.W. 8th Street, Bentonville, Arkansas 72716, USA. Our common stock trades on the New York Stock Exchange under the symbol "WMT." The Development of Our Company Although Walmart was incorporated in Delaware in October 1969, 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 that year, the first Wal-Mart Discount City, which was a discount store, opened in Rogers, Arkansas. In 1983, we opened our first Sam's Club, and in 1988, we opened our first supercenter. In 1998, we opened our first Neighborhood Market. In 1991, we began our first international initiative when we entered into a joint venture in Mexico. Since then, our international presence has expanded and, as of January 31, 2018, our Walmart International segment conducted business in 27 countries. In 2000, we began our first eCommerce initiative by creating walmart.com. That same year, we also created samsclub.com. Since then, our digital presence has continued to grow. In 2007, walmart.com launched its Site to Store service, enabling customers to make a purchase online and pick up merchandise in stores. In 2016, we acquired jet.com in the U.S. and formed a strategic alliance with JD.com in China. Subsequent to the jet.com purchase, we have acquired several other U.S. eCommerce entities. In 2017, walmart.com launched free two-day shipping on more than 2 million items and we created Store No 8, a tech incubator with a focus to drive commerce forward. These eCommerce efforts have led to omni-channel offerings in many markets, including over 1,100 "Online Grocery" pickup locations in the U.S. Information About Our Segments The Company is engaged in the operation of retail, wholesale and other units, as well as eCommerce websites, located throughout the U.S., Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico and the United Kingdom. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services. Walmart U.S. is our largest segment and operates retail stores in all 50 states in the U.S., Washington D.C. and Puerto Rico, with three primary store formats, as well as eCommerce. Walmart U.S. generated approximately 64% of our net sales in fiscal 2018, and of our three segments, Walmart U.S. is the largest and 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. Walmart International consists of operations in 27 countries outside of the U.S. and is divided into three major categories: retail, wholesale and other. These categories consist of many formats, including: supercenters, supermarkets, hypermarkets, warehouse clubs (including Sam's Clubs) and cash & carry, as well as eCommerce. Walmart International generated 7 approximately 24% of our fiscal 2018 net sales. The overall gross profit rate for Walmart International is lower than that of Walmart U.S. primarily because of its merchandise mix. Walmart International is our second largest segment. Sam's Club consists of membership-only warehouse clubs and operates in 44 states in the U.S. and in Puerto Rico, as well as eCommerce. Sam's Club accounted for approximately 12% of our fiscal 2018 net sales. 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. 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, we revise the measurement of each segment's operating income, including any corporate overhead allocations, as determined by the information regularly reviewed by our CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation. Walmart U.S. Segment The Walmart U.S. segment is a mass merchandiser of consumer products, operating under the "Walmart," "Wal-Mart" and "Walmart Neighborhood Market" brands, as well as walmart.com and other eCommerce brands. The Walmart U.S. segment had net sales of $318.5 billion, $307.8 billion and $298.4 billion for fiscal 2018, 2017 and 2016, respectively. During the most recent fiscal year, no single unit accounted for as much as 1% of total Company consolidated net sales. Physical. Walmart U.S. operates retail stores in the U.S., including in all 50 states, Washington D.C. and Puerto Rico, with supercenters in 49 states, Washington D.C. and Puerto Rico, discount stores in 41 states and Puerto Rico and Neighborhood Markets and other small store formats in 36 states, Washington D.C. and Puerto Rico. The following table provides square footage details on each of our formats as of January 31, 2018: Minimum Square Feet Supercenters (general merchandise and grocery) Discount stores (general merchandise and limited grocery) Neighborhood Markets(1) (grocery) (1) Maximum Square Feet 69,000 30,000 28,000 Average Square Feet 260,000 206,000 65,000 178,000 105,000 42,000 Excludes other small formats. The following table provides the retail unit count and retail square feet by format for the fiscal years shown: Supercenters Fiscal Year Balance forward 2014 2015 2016 2017 2018 Opened 72 79 55 38 30 Closed — — (16) (2) — Conversions(1) 58 40 19 21 9 Discount Stores Total(2) 3,158 3,288 3,407 3,465 3,522 3,561 Square Feet(2) 570,409 589,858 607,415 616,428 625,930 632,479 Opened 4 2 — — — Closed — — (9) (6) (6) Neighborhood Markets and Other Small Formats Fiscal Year Balance forward 2014 2015 2016 2017 2018 (1) (2) (3) Opened 122 235 161 73 85 Closed — (3) (133) (5) (20) Conversions(1) (1) — — — — Total(2) 286 407 639 667 735 800 Square Feet(2) 11,226 15,778 23,370 27,228 30,012 30,111 Conversions(1) Total(2) 561 508 470 442 415 400 (57) (40) (19) (21) (9) Square Feet(2) 59,098 53,496 49,327 45,991 43,347 41,926 Total Segment Opened(3) Total(2) Closed 198 316 216 111 115 — (3) (158) (13) (26) 4,005 4,203 4,516 4,574 4,672 4,761 Square Feet(2) 640,733 659,132 680,112 689,647 699,289 704,516 Conversions of discount stores or Neighborhood Markets to supercenters. "Total" and "Square Feet" columns are as of January 31 for the years shown. Retail square feet are reported in thousands. Total opened, net of conversions of discount stores or Neighborhood Markets to supercenters. Digital. Walmart U.S. provides its customers access to a broad assortment of merchandise, including products not found in our physical stores, and services online through our eCommerce family of brands' websites and third party retail partnership channels, as well as through related mobile commerce and voice-activated commerce applications. Our eCommerce family of brands includes walmart.com, jet.com, hayneedle.com, shoes.com, moosejaw.com, modcloth.com and bonobos.com. Walmart.com offers access to nearly 75 million SKUs, including those carried on Marketplace, a feature of the website that permits third parties to sell merchandise on walmart.com. Walmart.com is also integrated with our physical stores through 8 services like "Walmart Pickup," "Pickup Today" and in over 1,100 "Online Grocery" pickup locations to provide an omnichannel offering to our customers. Walmart U.S. also offers access to digital content and services including Vudu. Merchandise. Walmart U.S. does business in three strategic merchandise units, listed below, across several store formats including supercenters, discount stores, Neighborhood Markets and other small store formats, as well as on our eCommerce websites. • Grocery consists of a full line of grocery items, including meat, produce, natural & organics, deli & bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, floral and dry grocery, as well as consumables such as health and beauty aids, baby products, household chemicals, paper goods and pet supplies; • Health and wellness includes pharmacy, optical services, clinical services, and over-the-counter drugs and other medical products; • General merchandise includes: ◦ Entertainment (e.g., electronics, cameras and supplies, photo processing services, wireless, movies, music, video games and books); ◦ Hardlines (e.g., stationery, automotive, hardware and paint, sporting goods, outdoor living and horticulture); ◦ Apparel (e.g., apparel for women, girls, men, boys and infants, as well as shoes, jewelry and accessories); and ◦ Home/Seasonal (e.g., home furnishings, housewares and small appliances, bedding, home decor, toys, fabrics and crafts and seasonal merchandise). Walmart U.S. also offers fuel and financial services and related products, including money orders, prepaid cards, wire transfers, money transfers, check cashing and bill payment. These services total less than 1% of annual net sales. Brand name merchandise represents a significant portion of the merchandise sold in Walmart U.S. We also market lines of merchandise under our private-label store brands, including: "Adventure Force," "AutoDrive," "BlackWeb," "Equate," "Everstart," "Faded Glory," "George," "Great Value," "Holiday Time," "Hyper Tough," "Kid Connection," "Mainstays," "Marketside," "My Life As," "No Boundaries," "Ol' Roy," "Onn," "Ozark Trail," "Parent's Choice," "Prima Della," "Pure Balance," "Sam's Choice," "Special Kitty," "Spring Valley," "Terra & Sky," "Time and Tru," "Way to Celebrate" and "Wonder Nation." The Company also markets lines of merchandise under licensed brands, some of which include: "Better Homes & Gardens," "Farberware," "Russell" and "SwissTech." The percentage of strategic merchandise unit net sales for Walmart U.S., including online sales, was as follows for fiscal 2018, 2017 and 2016: STRATEGIC MERCHANDISE UNITS Fiscal Years Ended January 31, 2018 2017 2016 Grocery Health and wellness General merchandise Total 56% 11% 33% 100% 56% 11% 33% 100% 56% 11% 33% 100% 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. Many supercenters, discount stores and Neighborhood Markets are open 24 hours each day. A variety of payment methods are accepted at our stores and through our eCommerce websites and mobile commerce applications. Seasonal Aspects of Operations. Walmart 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 and segment operating income have occurred in the fiscal quarter ending January 31. Competition. Walmart U.S. competes with both physical retailers operating discount, department, retail and wholesale grocers, drug, dollar, variety and specialty stores, supermarkets, hypermarkets and supercenter-type stores, and digital retailers, as well as catalog businesses. We also compete with others for desirable sites for new or relocated retail units. Our ability to develop, open 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 employ many programs designed to meet competitive pressures within our industry. These programs include the following: • EDLP: 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; • EDLC: everyday low cost is our commitment to control expenses so our cost savings can be passed along to our customers; 9 • • • • • • Rollbacks: our commitment to pass cost savings on to the customer by lowering prices on selected goods; Savings Catcher, Save Even More and Ad Match: strategies to meet or be below a competitor's advertised price; Walmart Pickup: customer places order online and picks it up for free from a store. The merchandise is fulfilled through our distribution facilities; Pickup Today: customer places order online and picks it up at a store within four hours for free. The order is fulfilled through existing store inventory; Online Grocery: customer places grocery order online and has it delivered to home or picks it up at one of our participating stores or remote locations; and Money Back Guarantee: our commitment to ensure the quality and freshness of the fruits and vegetables in our stores by offering our customers a 100 percent money-back guarantee if they are not satisfied. We offer a broad assortment of merchandise that provides one-stop shopping, in-stock levels that give our customers confidence that we will have the products they need and operating hours that allow customers to shop at their convenience. In addition, our eCommerce capabilities, including omni-channel transactions that involve both an eCommerce platform and a physical format, are important factors in our competition with other retailers. Distribution. For fiscal 2018, approximately 78% of Walmart U.S.'s purchases of store merchandise were shipped through our 157 distribution facilities, which are located strategically throughout the U.S. The remaining 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 30 dedicated eCommerce fulfillment centers. The following table provides further details of our distribution facilities, including return facilities and dedicated eCommerce fulfillment centers, as of January 31, 2018: Walmart U.S. distribution facilities Owned and Operated Owned and Third Party Operated Leased and Operated Third Party Owned and Operated Total 103 2 23 29 157 Walmart International Segment The Walmart International segment consists of operations in 27 countries outside of the U.S. and includes numerous formats divided into three major categories: retail, wholesale and other. These categories, including eCommerce, consist of many formats, including: supercenters, supermarkets, hypermarkets, warehouse clubs (including Sam's Clubs) and cash & carry. The segment's net sales for fiscal 2018, 2017 and 2016, were $118.1 billion, $116.1 billion and $123.4 billion, respectively, which have been impacted by currency exchange rate fluctuations. During the most recent fiscal year, no single unit accounted for as much as 1% of total Company net sales. Physical. Walmart International includes physical stores operated by: our wholly-owned subsidiaries operating in Argentina, Brazil, Canada, Chile, China, India, Japan and the United Kingdom; and our majority-owned subsidiaries operating in Africa (which includes Botswana, Ghana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Nigeria, South Africa, Swaziland, Tanzania, Uganda and Zambia), Central America (which includes Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) and Mexico. Generally, retail units range in size from 8,900 square feet to 186,000 square feet. Our wholesale stores generally range in size from 35,000 square feet to 185,000 square feet. Other, which includes drugstores and convenience stores operating under various banners in Brazil, Mexico and the United Kingdom, range in size up to 2,400 square feet. Also, on a limited basis, Walmart International operates financial institutions that provide consumer credit. 10 The following table provides the retail unit count(1) and retail square feet(2) for the fiscal years shown: Africa Fiscal Year Balance forward 2014 2015 2016 2017 2018 Unit Count Square Feet 377 379 396 408 412 424 19,775 20,513 21,223 21,869 22,542 23,134 China Fiscal Year Balance forward 2014 2015 2016 2017 2018 (1) (2) (3) Unit Count 393 405 411 432 439 443 Argentina Unit Count Square Feet 94 104 105 108 107 106 7,531 8,062 8,119 8,280 8,264 8,305 India Square Feet 65,801 67,205 68,269 71,724 73,172 73,615 Unit Count 20 20 20 21 20 20 Brazil Unit Count Canada Square Feet 558 556 557 499 498 465 32,494 32,501 33,028 30,675 30,642 29,824 1,083 1,083 1,083 1,146 1,091 1,091 Unit Count Square Feet 438 438 431 346 341 336 379 389 394 400 410 410 Square Feet 48,354 49,914 50,927 51,784 53,088 53,082 Mexico(3) Japan Square Feet Unit Count 24,448 24,489 24,429 22,551 21,921 21,181 Unit Count 1,988 2,199 2,290 2,360 2,411 2,358 Square Feet 88,833 94,900 98,419 100,308 101,681 97,024 Central America Unit Square Count Feet 642 661 690 709 731 778 Chile Unit Count 9,873 10,427 11,094 11,410 11,770 12,448 United Kingdom Unit Square Count Feet 565 576 592 621 631 642 34,810 35,416 36,277 37,044 37,338 37,587 329 380 404 395 363 378 Square Feet 12,671 13,697 14,762 15,407 15,260 15,990 Total Segment Unit Count 5,783 6,107 6,290 6,299 6,363 6,360 Square Feet 345,673 358,207 367,630 372,198 376,769 373,281 "Unit Count" includes retail stores, wholesale clubs and other, which includes drugstores and convenience stores. Walmart International unit counts, with the exception of Canada, are stated as of December 31, to correspond with the fiscal year end of the related geographic market. Canada unit counts and square footage are stated as of January 31. For the balance forward, all country balances are stated as of the end of fiscal year 2013. "Square Feet" columns are reported in thousands. All periods presented exclude units and square feet for the Vips restaurant business. The Company completed the sale of the Vips restaurant business in fiscal 2015. Unit counts(1) as of January 31, 2018 for Walmart International are summarized by major category for each geographic market as follows: Geographic Market Retail (3) Wholesale Other(2) Total Africa Argentina Brazil Canada Central America(4) Chile China India Japan Mexico United Kingdom 335 106 380 410 778 373 424 — 336 2,186 617 89 — 70 — — 5 19 20 — 162 — — — 15 — — — — — — 10 25 424 106 465 410 778 378 443 20 336 2,358 642 Total 5,945 365 50 6,360 (1) (2) (3) (4) Walmart International unit counts, with the exception of Canada, are stated as of December 31, 2017, to correspond with the balance sheet date of the related geographic market. Canada unit counts are stated as of January 31, 2018. Other includes drug stores and convenience stores. Africa unit counts by country are Botswana (11), Ghana (2), Kenya (1), Lesotho (3), Malawi (2), Mozambique (5), Namibia (4), Nigeria (5), South Africa (382), Swaziland (1), Tanzania (1), Uganda (1) and Zambia (6). Central America unit counts by country are Costa Rica (247), El Salvador (95), Guatemala (238), Honduras (103) and Nicaragua (95). Digital. Walmart International operates eCommerce websites in numerous countries. Customers have access through our eCommerce websites and, in countries where available, mobile commerce applications to a broad assortment of merchandise and services, both of which vary by country. Our omni-channel offerings include capabilities like "Click & Collect" in the United Kingdom and our grocery pick-up and delivery business in several other markets. Merchandise. The 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, lower priced items. Along with the private brands we market globally, such as "Equate," "George," "Great Value," "Holiday Time," "Mainstays," "Ol' Roy" and "Parent's Choice," our international markets have developed market specific brands including "Aurrera," "Cambridge," "Chosen by You" and "Extra Special." In addition, we have developed relationships with 11 regional and local suppliers in each market to ensure reliable sources of quality merchandise that is equal to national brands at low prices. Operations. The 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. Operating units in each country accept a variety of payment methods. Seasonal Aspects of Operations. Walmart International's business is seasonal to a certain extent. Historically, the segment's highest sales volume and operating income have 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. Walmart International competes with both physical 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 digital retailers, as well as catalog businesses. We also operate, on a limited basis, consumer credit operations. We compete with others for desirable sites for new or relocated units. Our ability to develop, open and operate units at the right locations and to deliver a customer-centric experience that seamlessly integrates digital and physical shopping determines, to a large extent, our competitive position in the markets in which Walmart International operates. 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. In the markets in which we have eCommerce websites or mobile commerce applications, those websites and applications help differentiate us from our competitors and help us compete with other retailers for customers and their purchases, both in our digital and physical retail operations. Distribution. We utilize a total of 188 distribution facilities located in Argentina, Brazil, Canada, Central America, Chile, China, Japan, Mexico, South Africa and the United Kingdom. Through these facilities, we process and distribute both imported and domestic products to the operating units of the Walmart International segment. During fiscal 2018, approximately 83% of Walmart International's purchases passed through these distribution facilities. Suppliers ship the balance of Walmart International's purchases directly to our stores in the various markets in which we operate. The following table provides further details of our international distribution facilities, including 17 dedicated eCommerce fulfillment centers, as of December 31, 2017, with the exception of distribution facilities in Canada, which are stated as of January 31, 2018: International distribution facilities Owned and Operated Owned and Third Party Operated Leased and Operated Third Party Owned and Operated Total 43 12 87 46 188 We ship merchandise purchased by customers on our eCommerce websites and through our mobile commerce applications by a number of methods from multiple locations including from our dedicated eCommerce fulfillment centers. Sam's Club Segment The Sam's Club segment operates membership-only warehouse clubs, as well as samsclub.com, in the U.S. and had net sales of $59.2 billion, $57.4 billion and $56.8 billion for fiscal 2018, 2017 and 2016, respectively. During the most recent fiscal year, no single club location accounted for as much as 1% of total Company net sales. Membership. Beginning in the year ending January 31, 2019 ("fiscal 2019"), Sam's Club simplified the membership program. The following two options are available to members: Membership Type Plus Annual Membership Fee Club $100 $45 Up to 16 Up to 8 Eligible for Cash Rewards Yes No Eligible for Free Shipping Yes No Number of Add-on Memberships ($40 each) All memberships include a spouse/household card at no additional cost. Plus Members are eligible for Cash Rewards, which is a benefit that provides $10 for every $500 in qualifying Sam's Club purchases up to a $500 cash reward annually. The amount earned can be used for purchases, membership fees or redeemed for cash. Plus Members are also eligible for Free Shipping on the vast majority of merchandise available online, with no minimum order size. Free Shipping is yet another example of creating a new Sam's Club for our members. 12 Physical. As a membership-only warehouse club, Sam's Club facility sizes generally range between 94,000 and 168,000 square feet, with an average size of approximately 134,000 square feet. The following table provides the retail unit count and retail square feet for the fiscal years shown: Fiscal Year Opened Closed Balance forward Total(1) Square Feet(1) 620 82,653 2014 12 — 632 84,382 2015 16 (1) 647 86,510 2016 8 — 655 87,552 2017 9 (4) 660 88,376 2018 4 (67) 597 80,068 (1) "Total" and "Square Feet" columns are as of January 31 for the fiscal years shown. Retail square feet are reported in thousands. Digital. Sam's Club provides its members access to a broad assortment of merchandise, including products not found in our clubs, and services online at samsclub.com and through our mobile commerce applications. Samsclub.com experiences on average 20.4 million unique visitors a month and offers access to approximately 59,000 SKUs providing the member the option of delivery direct-to-home or to the club through services such as "Club Pickup." Digital retail supports our physical clubs with capabilities like "Scan and Go," a mobile checkout and payment solution, which allows members to bypass the checkout line. Merchandise. Sam'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 and other categories consists of gasoline stations, tobacco, tools and power equipment, and tire and battery centers; • Home and apparel includes home improvement, outdoor living, grills, gardening, furniture, apparel, jewelry, housewares, toys, seasonal items, mattresses and small appliances; • Technology, office and entertainment includes electronics, wireless, software, video games, movies, books, music, office supplies, office furniture, photo processing and third-party gift cards; and • Health and wellness includes pharmacy, optical and hearing services and over-the-counter drugs. The Member's Mark brand continues to expand assortment and deliver member value. In fiscal 2018, Member's Mark sales exceeded $10 billion, driven by growth in grocery, seasonal items and apparel. The percentage of net sales for Sam's Club, including eCommerce sales, by merchandise category, was as follows for fiscal 2018, 2017 and 2016: MERCHANDISE CATEGORY Fiscal Years Ended January 31, 2018 2017 2016 Grocery and consumables 58% 59% 59% Fuel and other categories 21% 20% 20% Home and apparel 9% 9% 9% Technology, office and entertainment 6% 6% 7% Health and wellness 6% 6% 5% 100% 100% 100% Total Operations. Operating hours for Sam's Clubs are generally Monday through Friday from 10:00 a.m. to 8:30 p.m., Saturday from 9:00 a.m. to 8:30 p.m. and Sunday from 10:00 a.m. to 6:00 p.m. Additionally, all club locations offer Plus Members the ability to shop before the regular operating hours Monday through Saturday, starting at 7:00 a.m. A variety of payment methods are accepted at our clubs and online, including the co-branded Sam's Club "Cash Back" MasterCard. Seasonal Aspects of Operations. Sam'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 and segment operating income have occurred in the fiscal quarter ending January 31. Competition. Sam'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 digital 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 13 applications have increasingly become important factors in our ability to compete with other membership-only warehouse clubs. Distribution. During fiscal 2018, approximately 68% of Sam's Club's non-fuel purchases were shipped from Sam's Club's 22 dedicated distribution facilities located strategically throughout the U.S., or from some of the Walmart U.S. segment's distribution facilities, which service the Sam's Club segment for certain items. Suppliers shipped the balance of the Sam's Club segment's purchases directly to Sam's Club locations. The following table provides further details of our dedicated distribution facilities, including two dedicated eCommerce fulfillment centers and two dedicated import facilities, as of January 31, 2018: Sam's Club distribution facilities Owned and Operated Owned and Third Party Operated Leased and Operated Third Party Owned and Operated Total 3 3 3 13 22 The principal focus of Sam's Club's distribution operations is on cross-docking merchandise, while stored inventory is minimized. Cross-docking is a distribution process under which shipments are directly transferred from inbound to outbound trailers. Shipments typically spend less than 24 hours in a cross-dock facility, and sometimes less than an hour. Sam's Club uses a combination of our private truck fleet, as well as common carriers, to transport non-perishable merchandise from distribution facilities to clubs. The segment contracts with common carriers to transport perishable grocery merchandise from distribution facilities to clubs. Sam's Club ships merchandise purchased by members on samsclub.com and through its mobile commerce applications by a number of methods from its dedicated eCommerce fulfillment centers and other distribution centers. Other Segment Information Certain financial information relating to our segments is included in Part II, Item 7 under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in Note 15 to our Consolidated Financial Statements. Note 15 also includes information regarding total revenues and long-lived assets aggregated by our U.S. and nonU.S. operations. 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. Suppliers and Supply Chain As a retailer and warehouse club operator, we utilize a global supply chain that includes over 100,000 suppliers located around the world, including in the United States, 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. Our purchases may represent a significant percentage of a number of our suppliers' annual sales, and the volume of product we acquire from many suppliers allows us to obtain favorable pricing from such suppliers. 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 customer, to receive those products within the required time through our supply chain and to distribute those products to our stores and clubs determines, 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. Employees As of the end of fiscal 2018, Walmart Inc. and our subsidiaries employed approximately 2.3 million employees ("associates") worldwide, with 1.5 million associates in the U.S. and 0.8 million associates internationally. Similar to other retailers, the Company has a large number of part-time, hourly or non-exempt associates. We believe our relationships with our associates are good and are continuing to improve. A large number of associates turn over each year, although Walmart U.S. turnover has been improving in fiscal 2018 as a result of our focus on increasing wages and providing improved tools, technology and training to associates. 14 Certain information relating to retirement-related benefits we provide to our associates is included in Note 12 to our Consolidated Financial Statements. In addition to retirement-related benefits, in the U.S., we offer a broad range of Company-paid benefits to our associates. These include a store discount card or Sam's Club membership, bonuses based on Company performance, matching a portion of purchases of our stock by associates through our Associate Stock Purchase Plan and life insurance. In addition to the healthcare benefits for eligible full-time and part-time associates in the U.S., as announced in January 2018, we expanded maternity leave and implemented a new paid parental leave program to all full-time associates. We also introduced a $5,000 benefit to assist eligible associates with adoption. Similarly, in the operations outside the U.S., we provide a variety of associate benefits that vary based on customary local practices and statutory requirements. 15 Executive Officers of the Registrant The following chart names the executive officers of the Company as of the date of the filing of this Annual Report on Form 10K 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. Current Position Held Since Age Name Business Experience 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 46 M. Brett Biggs Executive Vice President and Chief Financial Officer, effective January 1, 2016. From January 2014 to December 2015, he served as Executive Vice President and Chief Financial Officer of Walmart International. From January 2013 to January 2014, he was Executive Vice President and Chief Financial Officer of Walmart U.S. 2016 49 Jacqueline P. Canney Executive Vice President, Global People, effective August 3, 2015. From September 2003 to July 2015, she served as the Managing Director of Global Human Resources at Accenture plc., a global management consulting, technology services and outsourcing company. 2015 50 David M. Chojnowski Senior Vice President and Controller effective January 1, 2017. From October 2014 to January 2017, he served as Vice President and Controller, Walmart U.S. From January 2013 to October 2014, he served as Vice President, Finance Transformation, of Walmart International. 2017 48 Gregory Foran Executive Vice President, President and Chief Executive Officer, Walmart U.S. effective August 2014. From May 2014 to August 2014, he served as President and Chief Executive Officer for the Walmart Asia region. From March 2012 to May 2014, he served as President and Chief Executive Officer of Walmart China. 2014 56 John Furner Executive Vice President, President and Chief Executive Officer, Sam's Club, effective February 1, 2017. From October 2015 to January 2017, he served as Executive Vice President and Chief Merchandising Officer of Sam's Club. From January 2013 to October 2015, he served as Senior Vice President and Chief Merchandising Officer of Walmart China. 2017 43 Marc Lore Executive Vice President, President and Chief Executive Officer, U.S. eCommerce, effective September 2016. From April 2014 to September 2016, he served as President and Chief Executive Officer of Jet.com, Inc. From January 2005 to July 2013, he served as Chief Executive Officer of Quidsi, Inc., an eCommerce retailer that became a wholly-owned subsidiary of Amazon.com, Inc. in April 2011. 2016 46 Judith McKenna Executive Vice President, President and Chief Executive Officer, Walmart International, effective February 1, 2018. From February 2015 to January 2018, she served as Executive Vice President and Chief Operating Officer of Walmart U.S. Prior to that position, she served as Executive Vice President and Chief Development Officer for Walmart U.S. from April 2014 to February 2015; as Executive Vice President, Strategy and Development, for Walmart International, from April 2013 to April 2014; and as Chief Operating Officer of Asda Group Limited, the Company's subsidiary in the United Kingdom, from July 2011 to April 2013. 2018 51 C. Douglas McMillon President and Chief Executive Officer, effective February 1, 2014. From February 2009 to January 2014, he served as Executive Vice President, President and Chief Executive Officer, Walmart International. 2014 51 New Executive Officer Effective April 2, 2018, Rachel Brand, age 44, will join the Company as Executive Vice President, Global Governance and Corporate Secretary. From May 2017 to February 2018, she served as Associate Attorney General in the United States Department of Justice. From January 2017 to May 2017, she was an Associate Professor of Law at George Mason University Antonin Scalia Law School. Prior to that position, she served as a Board Member on the Privacy and Civil Liberties Oversight Board of the U.S. government from August 2012 to February 2017. 16 Our 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. In addition, the public may read and copy any of the materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Our SEC filings, our Code of Ethics for our CEO and Senior Financial Officers and our Statement of Ethics 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. A description of any substantive amendment or waiver of Walmart's Code of Ethics for the CEO and Senior Financial Officers or our Statement of Ethics 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. RISK FACTORS The risks described below could materially and adversely affect our business, results of operations, financial condition and liquidity. Our business operations could also be affected by additional factors that apply to all companies operating in the U.S. and globally. Strategic Risks 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 measures that create barriers to or increase the costs associated with international trade, overall economic slowdown 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 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. 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, 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. We face strong competition from other retailers and wholesale club operators (whether through physical retail, digital retail or the integration of both), which could materially adversely affect our financial performance. Each of our segments competes for customers, employees, store and club sites, digital prominence, products and services and in other important aspects of its business with many other local, regional, national and global physical and digital retailers, wholesale club operators and retail intermediaries. Our Walmart U.S. segment competes with both physical retailers operating discount, department, retail and wholesale grocers, drug, dollar, variety and specialty stores, supermarkets, hypermarkets and supercenter-type stores, and digital retailers, as well as catalog businesses. Our Sam's Club segment competes with other wholesale club operators, as well as discount retailers, retail and wholesale grocers, general merchandise wholesalers and distributors, gasoline stations, as well as digital retailers and catalog businesses. 17 Our Walmart International segment competes with both physical 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 digital retailers, as well as catalog businesses. 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 the omni-channel integration of our physical and digital retail operations. A failure to respond effectively to competitive pressures and changes in the retail markets or delays or failure in execution of our strategy could materially adversely affect our financial performance. See "Item 1. Business" above for additional discussion of the competitive situation of each of our reportable segments. Certain segments of the retail industry are undergoing consolidation, which could result in increased competition and significantly alter the dynamics of the retail marketplace. Such consolidation, or other business combinations or alliances, may result in competitors with greatly improved financial resources, improved access to merchandise, greater market penetration than they previously enjoyed and other improvements in their competitive positions. Such business combinations or alliances could result in the provision of a wider variety of products and services at competitive prices by such consolidated or aligned companies, which could adversely affect our financial performance. We may not timely identify or effectively respond to consumer trends or preferences, which 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 the competitive environment, whether for customers purchasing products at our stores and clubs, through our digital platforms or through the combination of both. Price transparency, assortment of products, customer experience, convenience 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 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 relationship with our customers, the demand for the products we sell, our market share and the growth of our business. Failure to grow our eCommerce business through the omni-channel integration of physical and digital retail or otherwise, and the cost of our increasing eCommerce investments, may materially adversely affect our market position, net sales and financial performance. The retail business is rapidly evolving and consumers are increasingly embracing shopping online and through mobile commerce applications. 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 accelerate. Our strategy, which includes investments in eCommerce, technology, store remodels and other customer initiatives may not adequately or effectively allow us to grow our eCommerce business, increase comparable store 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 build and deliver a seamless omni-channel shopping experience and is further subject to the risks we face as outlined in this Item 1A. As a result, our market position, net sales and financial performance could be adversely affected. In addition, a greater concentration of eCommerce sales could result in a reduction in the amount of traffic in our stores and clubs, which would, in turn, reduce the opportunities for crossstore or cross-club sales of merchandise that such traffic creates and could reduce our sales within our stores and clubs and materially adversely affect the financial performance of the physical retail side of our operations. Furthermore, the cost of certain eCommerce and technology investments, including any operating losses incurred by acquired eCommerce businesses will adversely impact our financial performance in the short-term and may adversely impact our financial performance over the longer term. The performance of strategic alliances to support the expansion of our Walmart International segment could materially adversely affect our financial performance. Our Walmart International segment may enter into strategic alliances in the countries in which we have existing operations or in other markets to expand our digital retail operations, physical retail operations or both. Any strategic alliance may not generate the level of eCommerce or other sales we anticipate when entering into that alliance or may otherwise adversely impact our 18 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 could materially adversely affect our financial performance. Operational Risks Natural disasters, changes in climate, and geo-political 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, severe changes in climate and geo-political events, such as war, civil unrest or terrorist attacks in a country in which we operate or in which our suppliers are located 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 facilities, 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 facilities are located, the unavailability of our digital platforms to our customers, changes in the purchasing patterns of consumers and in consumers' disposable income, the temporary or long-term disruption in the supply of products from some local and overseas suppliers, the disruption in the transport of goods from overseas, the disruption or delay in the delivery of goods to our distribution facilities or stores within a country in which we are operating, the reduction in the availability of products in our stores, the disruption of utility services to our stores and our facilities, and disruption in our communications with our stores. We bear the risk of losses incurred as a result of physical damage to, or destruction of, any stores, clubs and distribution facilities, 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 in the areas in which they occur and could materially adversely affect our financial performance. Risks associated with the suppliers from whom our products are sourced 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 all of our suppliers to comply with applicable laws, including labor, safety 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, is a significant challenge, especially with respect to suppliers located and goods sourced outside the U.S. Political and economic instability in the countries in which our foreign suppliers and their manufacturers are located, the financial instability of suppliers, suppliers' failure to meet certain of 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 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 U.S., 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. In addition, the U.S.'s foreign trade policies, tariffs and other impositions on imported goods, trade sanctions imposed on certain countries, the limitation on the 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 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 material adverse effects to our brand, reputation and financial performance. 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. 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. 19 We rely extensively on information 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 breaches (through cyber-attacks from cyber-attackers and sophisticated organizations), catastrophic events such as fires, tornadoes, earthquakes and hurricanes, and usage errors by our associates or contractors. 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 if our systems are damaged, breached or cease to function properly, we may have to make a significant investment to repair or replace them, and we may 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 are constantly updating our information technology processes and systems. The risk of system disruption is increased when significant system changes are undertaken. If we fail to timely integrate and update our information systems and processes, we may fail to realize the cost...
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Average closing price
Standard deviation
Maximum
Minimum
Range
Mean weekly return
Standard deviation

WMT-Close prices
$ 92.31
$ 6.50
$ 108.39
$ 82.46
$ 25.93
0.23%
3.12%

Close prices
120
100

Stock prices

Date
Close pricesChange
10/23/2017
88.17
10/30/2017
89.68
1.71%
11/6/2017
90.92
1.38%
11/13/2017
97.47
7.20%
11/20/2017
96.62
-0.87%
11/27/2017
97.35
0.76%
12/4/2017
96.55
-0.82%
12/11/2017
97.11
0.58%
12/18/2017
98.21
1.13%
12/25/2017
98.75
0.55%
1/1/2018
100.13
1.40%
1/8/2018
100.87
0.74%
1/15/2018
104.59
3.69%
1/22/2018
108.39
3.63%
1/29/2018
104.48
-3.61%
2/5/2018
99.37
-4.89%
2/12/2018
104.78
5.44%
2/19/2018
92.89 -11.35%
2/26/2018
88.77
-4.44%
3/5/2018
88.72
-0.06%
3/12/2018
89.17
0.51%
3/19/2018
85.42
-4.21%
3/26/2018
88.97
4.16%
4/2/2018
86.69
-2.56%
4/9/2018
86.02
-0.77%
4/16/2018
86.98
1.12%
4/23/2018
87.29
0.36%
4/30/2018
87.53
0.27%
5/7/2018
83.38
-4.74%
5/14/2018
83.64
0.31%
5/21/2018
82.46
-1.41%
5/28/2018
82.99
0.64%
6/4/2018
84.36
1.65%
6/11/2018
83.7
-0.78%
6/18/2018
84.82
1.34%
6/25/2018
85.65
0.98%
7/2/2018
84.51
-1.33%
7/9/2018
87.7
3.77%
7/16/2018
88.06
0.41%
7/23/2018
88.13
0.0...


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