Table of Contents
Consolidated Statement of Income
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020
(in millions except per share amounts)
2022
2021
2020
Net Revenue
$
86,392 $
79,474 $
70,372
Cost of sales
40,576
37,075
31,797
Gross profit
45,816
42,399
38,575
Selling, general and administrative expenses
34,459
31,237
28,453
Gain associated with the Juice Transaction (see Note 13)
(3,321)
—
—
Impairment of intangible assets (see Notes 1 and 4)
3,166
—
42
Operating Profit
11,512
11,162
10,080
Other pension and retiree medical benefits income
132
522
117
Net interest expense and other
(939)
(1,863)
(1,128)
Income before income taxes
10,705
9,821
9,069
Provision for income taxes
1,727
2,142
1,894
Net income
8,978
7,679
7,175
Less: Net income attributable to noncontrolling interests
68
61
55
Net Income Attributable to PepsiCo
$
8,910 $
7,618 $
7,120
Net Income Attributable to PepsiCo per Common Share
Basic
$
6.45 $
5.51 $
5.14
Diluted
$
6.42 $
5.49 $
5.12
Weighted-average common shares outstanding
Basic
1,380
1,382
1,385
Diluted
1,387
1,389
1,392
See accompanying notes to the consolidated financial statements.
60___FINANCEBENCH_DELIMITER___Table of Contents
Consolidated Statement of Cash Flows
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020
(in millions)
2022
2021
2020
Operating Activities
Net income
$
8,978 $
7,679 $
7,175
Depreciation and amortization
2,763
2,710
2,548
Gain associated with the Juice Transaction
(3,321)
—
—
Impairment and other charges
3,618
—
—
Operating lease right-of-use asset amortization
517
505
478
Share-based compensation expense
343
301
264
Restructuring and impairment charges
411
247
289
Cash payments for restructuring charges
(224)
(256)
(255)
Acquisition and divestiture-related charges
80
(4)
255
Cash payments for acquisition and divestiture-related charges
(46)
(176)
(131)
Pension and retiree medical plan expenses
419
123
408
Pension and retiree medical plan contributions
(384)
(785)
(562)
Deferred income taxes and other tax charges and credits
(873)
298
361
Tax expense related to the TCJ Act
86
190
—
Tax payments related to the TCJ Act
(309)
(309)
(78)
Change in assets and liabilities:
Accounts and notes receivable
(1,763)
(651)
(420)
Inventories
(1,142)
(582)
(516)
Prepaid expenses and other current assets
118
159
26
Accounts payable and other current liabilities
1,842
1,762
766
Income taxes payable
57
30
(159)
Other, net
(359)
375
164
Net Cash Provided by Operating Activities
10,811
11,616
10,613
Investing Activities
Capital spending
(5,207)
(4,625)
(4,240)
Sales of property, plant and equipment
251
166
55
Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of
intangible and other assets
(873)
(61)
(6,372)
Proceeds associated with the Juice Transaction
3,456
—
—
Other divestitures, sales of investments in noncontrolled affiliates and other assets
49
169
6
Short-term investments, by original maturity:
More than three months - purchases
(291)
—
(1,135)
More than three months - maturities
150
1,135
—
Three months or less, net
24
(58)
27
Other investing, net
11
5
40
Net Cash Used for Investing Activities
(2,430)
(3,269)
(11,619)
(Continued on following page)
62


(8) The shareholder proposal regarding a congruency report on net-zero emissions policies was defeated:
For
19,718,780
Against
977,228,788


Effective May 26, 2023, PepsiCo terminated the $3,800,000,000 five year unsecured revolving credit agreement, dated as of May 27, 2022, amongPepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent (the “
2022 Five Year Credit Agreement
”). There were nooutstanding borrowings under the 2022 Five Year Credit Agreement at the time of its termination.
On May 26, 2023, PepsiCo entered into a new $4,200,000,000 five year unsecured revolving credit agreement (the “
2023 Five Year CreditAgreement
”) among PepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent. The 2023 Five Year Credit Agreementenables PepsiCo and its borrowing subsidiaries to borrow up to $4,200,000,000 in U.S. Dollars and/or Euros, including a $750,000,000 swing linesubfacility for Euro-denominated borrowings permitted to be borrowed on a same day basis, subject to customary terms and conditions, and expires onMay 26, 2028. PepsiCo may also, upon the agreement of either the then existing lenders or of additional banks not currently party to the 2023 Five YearCredit Agreement, increase the commitments under the 2023 Five Year Credit Agreement to up to $4,950,000,000 in U.S. Dollars and/or Euros. PepsiComay, once a year, request renewal of the 2023 Five Year Credit Agreement for an additional one year period. Subject to certain conditions stated in the 2023Five Year Credit Agreement, PepsiCo and its borrowing subsidiaries may borrow, prepay and reborrow amounts under the 2023 Five Year CreditAgreement at any time during the term of the 2023 Five Year Credit Agreement. Funds borrowed under the 2023 Five Year Credit Agreement may be usedfor general corporate purposes of PepsiCo and its subsidiaries. The 2023 Five Year Credit Agreement contains customary representations and warrantiesand events of default. In the ordinary course of their respective businesses, the lenders under the 2023 Five Year Credit Agreement and their affiliates haveengaged, and may in the future engage, in commercial banking and/or investment banking transactions with PepsiCo and its affiliates.


Item 8.01.
Other Events.
Effective May 26, 2023, PepsiCo, Inc. (“
PepsiCo
”) terminated the $3,800,000,000 364 day unsecured revolving credit agreement, dated as ofMay 27, 2022, among PepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent (the “
2022 364 Day CreditAgreement
”). There were no outstanding borrowings under the 2022 364 Day Credit Agreement at the time of its termination.
On May 26, 2023, PepsiCo entered into a new $4,200,000,000 364 day unsecured revolving credit agreement (the “
2023 364 Day CreditAgreement
”) among PepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent. The 2023 364 Day Credit Agreementenables PepsiCo and its borrowing subsidiaries to borrow up to $4,200,000,000 in U.S. Dollars and/or Euros, subject to customary terms and conditions,and expires on May 24, 2024. PepsiCo may also, upon the agreement of either the then existing lenders or of additional banks not currently party to the2023 364 Day Credit Agreement, increase the commitments under the 2023 364 Day Credit Agreement to up to $4,950,000,000 in U.S. Dollars and/orEuros. PepsiCo may request renewal of the 2023 364 Day Credit Agreement for an additional 364 day period or convert any amounts outstanding into aterm loan for a period of up to one year, which term loan would mature no later than the anniversary of the then effective termination date. Subject tocertain conditions stated in the 2023 364 Day Credit Agreement, PepsiCo and its borrowing subsidiaries may borrow, prepay and reborrow amounts underthe 2023 364 Day Credit Agreement at any time during the term of the 2023 364 Day Credit Agreement. Funds borrowed under the 2023 364 Day CreditAgreement may be used for general corporate purposes of PepsiCo and its subsidiaries. The 2023 364 Day Credit Agreement contains customaryrepresentations and warranties and events of default. In the ordinary course of their respective businesses, the lenders under the 2023 364 Day CreditAgreement and their affiliates have engaged, and may in the future engage, in commercial banking and/or investment banking transactions with PepsiCoand its affiliates.
Effective May 26, 2023, PepsiCo terminated the $3,800,000,000 five year unsecured revolving credit agreement, dated as of May 27, 2022, amongPepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent (the “
2022 Five Year Credit Agreement
”). There were nooutstanding borrowings under the 2022 Five Year Credit Agreement at the time of its termination.
On May 26, 2023, PepsiCo entered into a new $4,200,000,000 five year unsecured revolving credit agreement (the “
2023 Five Year CreditAgreement
”) among PepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent. The 2023 Five Year Credit Agreementenables PepsiCo and its borrowing subsidiaries to borrow up to $4,200,000,000 in U.S. Dollars and/or Euros, including a $750,000,000 swing linesubfacility for Euro-denominated borrowings permitted to be borrowed on a same day basis, subject to customary terms and conditions, and expires onMay 26, 2028. PepsiCo may also, upon the agreement of either the then existing lenders or of additional banks not currently party to the 2023 Five YearCredit Agreement, increase the commitments under the 2023 Five Year Credit Agreement to up to $4,950,000,000 in U.S. Dollars and/or Euros. PepsiComay, once a year, request renewal of the 2023 Five Year Credit Agreement for an additional one year period. Subject to certain conditions stated in the 2023Five Year Credit Agreement, PepsiCo and its borrowing subsidiaries may borrow, prepay and reborrow amounts under the 2023 Five Year CreditAgreement at any time during the term of the 2023 Five Year Credit Agreement. Funds borrowed under the 2023 Five Year Credit Agreement may be usedfor general corporate purposes of PepsiCo and its subsidiaries. The 2023 Five Year Credit Agreement contains customary representations and warrantiesand events of default. In the ordinary course of their respective businesses, the lenders under the 2023 Five Year Credit Agreement and their affiliates haveengaged, and may in the future engage, in commercial banking and/or investment banking transactions with PepsiCo and its affiliates.


“We are very pleased with our performance and business momentum as our categories and
geographies remained resilient during the first quarter. Given our strong start to the year, we
now expect our full-year 2023 organic revenue to increase 8 percent (previously 6 percent) and
core constant currency EPS to increase 9 percent (previously 8 percent),” said Chairman and
CEO Ramon Laguarta.


As of December 31,
(MILLIONS, EXCEPT PER COMMON SHARE DATA) 2021 2020
Assets
Cash and cash equivalents $ 1,944 $ 1,786
Short-term investments 29,125 10,437
Trade accounts receivable, less allowance for doubtful accounts: 2021—$492; 2020—$508 11,479 7,913
Inventories 9,059 8,020
Current tax assets 4,266 3,264
Other current assets 3,820 3,646
Total current assets 59,693 35,067
Equity-method investments 16,472 16,856
Long-term investments 5,054 3,406
Property, plant and equipment 14,882 13,745


Year Ended December 31,
(MILLIONS, EXCEPT PER COMMON SHARE DATA) 2021 2020 2019
Revenues $ 81,288 $ 41,651 $ 40,905
Costs and expenses:
Cost of sales(a) 30,821 8,484 8,054
Selling, informational and administrative expenses(a) 12,703 11,597 12,726
Research and development expenses(a) 13,829 9,393 8,385
Amortization of intangible assets 3,700 3,348 4,429
Restructuring charges and certain acquisition-related costs 802 579 601
(Gain) on completion of Consumer Healthcare JV transaction — (6) (8,107)
Other (income)/deductions––net (4,878) 1,219 3,497
Income from continuing operations before provision/(benefit) for taxes on income 24,311 7,036 11,321
Provision/(benefit) for taxes on income 1,852 370 583
Income from continuing operations 22,459 6,666 10,738
Discontinued operations––net of tax (434) 2,529 5,318
Net income before allocation to noncontrolling interests 22,025 9,195 16,056
Less: Net income attributable to noncontrolling interests 45 36 29
Net income attributable to Pfizer Inc. common shareholders $ 21,979 $ 9,159 $ 16,026


Note 2. Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative
Arrangements
A. Acquisitions
Trillium
On November 17, 2021, we acquired all of the issued and outstanding common stock not already owned by Pfizer of Trillium, a clinical stage
immuno-oncology company developing therapies targeting cancer immune evasion pathways and specific cell targeting approaches, for a
price of $18.50 per share in cash, for total consideration of $2.0 billion, net of cash acquired. As a result, Trillium became our wholly owned
subsidiary. We previously held a 2% ownership investment in Trillium. Trillium’s lead program, TTI-622, is an investigational fusion protein that
is designed to block the inhibitory activity of CD47, a molecule that is overexpressed by a wide variety of tumors.
We accounted for the transaction as an asset acquisition since the lead asset, TTI-622, represented substantially all of the fair value of the
gross assets acquired, which exclude cash acquired. At the acquisition date, we recorded a $2.1 billion charge representing an acquired
IPR&D asset with no alternative future use in Research and development expenses, of which the $2.0 billion net cash consideration is
presented as a cash outflow from operating activities. In connection with this acquisition, we recorded $256 million of assets acquired primarily
consisting of cash and investments. Liabilities assumed were approximately $81 million.
Array
On July 30, 2019, we acquired Array, a commercial stage biopharmaceutical company focused on the discovery, development and
commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need, for $48 per share in cash. The
total fair value of the consideration transferred was $11.2 billion ($10.9 billion, net of cash acquired). In addition, $157 million in payments to
Array employees for the fair value of previously unvested stock options was recognized as post-closing compensation expense and recorded
in Restructuring charges and certain acquisition-related costs (see Note 3). We financed the majority of the transaction with debt and the
balance with existing cash.___FINANCEBENCH_DELIMITER___Therachon
On July 1, 2019, we acquired all the remaining shares of Therachon, a privately-held clinical-stage biotechnology company focused on rare
diseases, with assets in development for the treatment of achondroplasia, a genetic condition and the most common form of short-limb
dwarfism, for $340 million upfront, plus potential milestone payments of up to $470 million contingent on the achievement of key milestones in
the development and commercialization of the lead asset. We accounted for the transaction as an asset acquisition since the lead asset
represented substantially all the fair value of the gross assets acquired. The total fair value of the consideration transferred for Therachon was
$322 million, which consisted of $317 million of cash and our previous $5 million investment in Therachon. In connection with this asset
acquisition, we recorded a charge of $337 million in Research and development expenses.


We expect to incur costs of approximately $700 million in connection with separating Upjohn, of which approximately 90% has been incurred since inception and through the second quarter of 2023. These charges include costs and expenses related to separation of legal entities and transaction costs.


The following summarizes revenues by geographic area:
Three Months Ended Six Months Ended
(MILLIONS)
July 2,
2023
July 3,
2022
%
Change
July 2,
2023
July 3,
2022
%
Change
United States $ 6,185 $ 11,222 (45) $ 14,692 $ 20,140 (27)
Developed Europe 2,415 5,480 (56) 5,236 11,569 (55)
Developed Rest of World 1,305 5,034 (74) 3,778 8,320 (55)
Emerging Markets 2,828 6,006 (53) 7,308 13,373 (45)
Revenues $ 12,734 $ 27,742 (54) $ 31,015 $ 53,402 (42)


We expect to incur costs of approximately $700 million in connection with separating Upjohn, of which approximately 90% has been incurred since inception
and through the second quarter of 2023. These charges include costs and expenses related to separation of legal entities and transaction costs.


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
10-K
☒
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended
January 28, 2023
or
☐
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _____________ to _____________
Commission File Number:
001-33764
ULTA BEAUTY, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
38-4022268
(I.R.S. Employer
Identification No.)
1000 Remington Blvd.
,
Suite 120
Bolingbrook
,
Illinois
(Address of principal executive offices)
60440
(Zip code)
Registrant’s telephone number, including area code: (
630
)
410-4800
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common stock, par value $0.01 per share
ULTA
The
NASDAQ
Global Select Market
Securities registered pursuant to Section 12(g) of the Act:
None


Ulta Beauty, Inc.
Consolidated Statements of Cash Flows
Fiscal year ended
January 28,
January 29,
January 30,
(In thousands)
2023
2022
2021
Operating activities
Net income
$
1,242,408
$
985,837
$
175,835
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
241,372
268,460
297,772
Non-cash lease expense
301,912
276,229
268,071
Long-lived asset impairment charge
—
—
72,533
Deferred income taxes
15,653
(
25,666
)
(
24,008
)
Stock-based compensation expense
43,044
47,259
27,583
Loss on disposal of property and equipment
6,688
5,358
6,827
Change in operating assets and liabilities:
Receivables
34,260
(
40,573
)
(
53,772
)
Merchandise inventories
(
104,233
)
(
331,003
)
125,486
Prepaid expenses and other current assets
(
19,432
)
(
3,412
)
(
4,363
)
Income taxes
(
45,182
)
(
35,652
)
58,916
Accounts payable
8,309
66,156
62,324
Accrued liabilities
48,249
58,598
58,599
Deferred revenue
41,098
79,196
36,848
Operating lease liabilities
(
324,500
)
(
303,914
)
(
297,513
)
Other assets and liabilities
(
7,731
)
12,392
(
783
)
Net cash provided by operating activities
1,481,915
1,059,265
810,355
Investing activities
Proceeds from short-term investments
—
—
110,000
Capital expenditures
(
312,126
)
(
172,187
)
(
151,866
)
Acquisitions, net of cash acquired
—
—
(
1,220
)


For the Full Year of Fiscal 2022
Net sales increased 18.3% to $10.2 billion compared to $8.6 billion in fiscal 2021,
primarily due to the favorable impact from the continued resilience of the beauty
category, retail price increases, the impact of new brands and product innovation,
increased social occasions, and fewer COVID-19 limitations compared to fiscal 2021.
Comparable sales increased 15.6% compared to an increase of 37.9% in fiscal 2021,
driven by a 10.8% increase in transactions and a 4.3% increase in average ticket.
Gross profit increased 20.1% to $4.0 billion compared to $3.4 billion in fiscal 2021. As
a percentage of net sales, gross profit increased to 39.6% compared to 39.0% in fiscal
2021, primarily due to leverage of fixed costs, strong growth in other revenue, and
favorable channel mix shifts, partially offset by higher inventory shrink and lower
merchandise margin.
SG&A expenses increased 16.2% to $2.4 billion compared to $2.1 billion in fiscal
2021. As a percentage of net sales, SG&A expenses decreased to 23.5% compared to
23.9% in fiscal 2021, primarily due to lower marketing expenses and leverage of
incentive compensation due to higher sales, partially offset by deleverage of corporate
overhead due to strategic investments and deleverage of store payroll and benefits
due to wage investments.


Balance Sheet
Cash and cash equivalents at the end of the fourth quarter of fiscal 2022 were $737.9
million.
Merchandise inventories, net at the end of the fourth quarter of fiscal 2022 totaled $1.6
billion compared to $1.5 billion at the end of the fourth quarter of fiscal 2021. The $104.2
million increase was primarily due to the opening of 47 new stores since January 29, 2022,
inventory to support new brand launches and brand expansions, and inventory cost
increases.


Share Repurchase Program
During the fourth quarter of fiscal 2022, the Company repurchased 722,457 shares of its
common stock at a cost of $328.1 million. During fiscal 2022, the Company repurchased 2.2
million shares of its common stock at a cost of $900.0 million. As of January 28, 2023, $1.1
billion remained available under the $2.0 billion share repurchase program announced in
March 2022.


Derivative Instruments
We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates.
We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency
swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps, swaptions and foreign exchange forwards. We do not hold
derivatives for trading purposes.
The following table sets forth the notional amounts of our outstanding derivative instruments:
(dollars in millions)
At December 31, 2021 2020
Interest rate swaps $ 19,779 $ 17,768
Cross currency swaps 32,502 26,288
Forward starting interest rate swaps 1,000 2,000
Foreign exchange forwards 932 1,405


Pension and postretirement health care and life insurance benefits earned during the year, as well as interest on projected benefit obligations,
are accrued.___FINANCEBENCH_DELIMITER___Estimated Future Benefit Payments
The benefit payments to retirees are expected to be paid as follows:
(dollars in millions)
Year Pension Benefits Health Care and Life
2022 $ 2,049 $ 906
2023 1,648 883
2024 1,097 862
2025 1,066 850
2026 1,034 840
2027 to 2031 5,097 4,139


Consolidated Balance Sheets
Verizon Communications Inc. and Subsidiaries
(dollars in millions, except per share amounts)
At December 31, 2022 2021
Assets
Current assets
Cash and cash equivalents $ 2,605 $ 2,921
Accounts receivable 25,332 24,742
Less Allowance for credit losses 826 896
Accounts receivable, net 24,506 23,846
Inventories 2,388 3,055
Prepaid expenses and other 8,358 6,906
Total current assets 37,857 36,728
Property, plant and equipment 307,689 289,897
Less Accumulated depreciation 200,255 190,201
Property, plant and equipment, net 107,434 99,696
Investments in unconsolidated businesses 1,071 1,061
Wireless licenses 149,796 147,619
Goodwill 28,671 28,603
Other intangible assets, net 11,461 11,677
Operating lease right-of-use assets 26,130 27,883
Other assets 17,260 13,329
Total assets $ 379,680 $ 366,596
Liabilities and Equity
Current liabilities
Debt maturing within one year $ 9,963 $ 7,443
Accounts payable and accrued liabilities 23,977 24,833
Current operating lease liabilities 4,134 3,859
Other current liabilities 12,097 11,025
Total current liabilities 50,171 47,160


Consolidated Balance Sheets
Verizon Communications Inc. and Subsidiaries
(dollars in millions, except per share amounts)
At December 31, 2022 2021
Assets
Current assets
Cash and cash equivalents $ 2,605 $ 2,921
Accounts receivable 25,332 24,742
Less Allowance for credit losses 826 896
Accounts receivable, net 24,506 23,846
Inventories 2,388 3,055
Prepaid expenses and other 8,358 6,906
Total current assets 37,857 36,728
Property, plant and equipment 307,689 289,897
Less Accumulated depreciation 200,255 190,201
Property, plant and equipment, net 107,434 99,696
Investments in unconsolidated businesses 1,071 1,061
Wireless licenses 149,796 147,619
Goodwill 28,671 28,603
Other intangible assets, net 11,461 11,677
Operating lease right-of-use assets 26,130 27,883
Other assets 17,260 13,329
Total assets $ 379,680 $ 366,596___FINANCEBENCH_DELIMITER___Consolidated Operating Revenues
(dollars in millions)
Increase/(Decrease)
Years Ended December 31, 2022 2021 2022 vs. 2021
Consumer $ 103,506 $ 95,300 $ 8,206 8.6 %
Business 31,072 31,042 30 0.1
Corporate and other 2,510 7,722 (5,212) (67.5)
Eliminations (253) (451) 198 43.9
Consolidated Operating Revenues $ 136,835 $ 133,613 $ 3,222 2.4


At December 31, Maturities
Interest
Rates % 2022 2021
Verizon Communications < 5 Years 0.75 - 5.82 $ 23,929 $ 18,406
5-10 Years 1.50 - 7.88 42,637 43,225
> 10 Years 1.13 - 8.95 60,134 73,520
< 5 Years Floating (1) 2,992 4,086
5-10 Years Floating (1) 3,029 824
Alltel Corporation 5-10 Years 6.80 - 7.88 94 38
> 10 Years N/A N/A 58
Operating telephone company subsidiaries—debentures < 5 Years N/A N/A 141
5-10 Years 6.00 - 8.75 475 375
> 10 Years 5.13 - 7.38 139 250
Other subsidiaries—asset-backed debt < 5 Years 0.41 - 5.72 9,767 9,620
< 5 Years Floating (2) 10,271 4,610
Finance lease obligations (average rate of 2.5% and 2.2% in
2022 and 2021, respectively) 1,732 1,325
Unamortized discount, net of premium (4,039) (4,922)
Unamortized debt issuance costs (671) (688)
Total long-term debt, including current maturities 150,489 150,868
Less long-term debt maturing within one year 9,813 7,443
Total long-term debt $ 140,676 $ 143,425
Long-term debt maturing within one year $ 9,813 $ 7,443
Add commercial paper 150 —
Debt maturing within one year 9,963 7,443
Add long-term debt 140,676 143,425
Total debt $ 150,639 $ 150,868


Walmart Inc.
Consolidated Statements of Income

Fiscal Years Ended January 31,
(Amounts in millions, except per share data)

2018

2017

2016
Revenues:

Net sales
 $
495,761
 $
481,317  $
478,614
Membership and other income

4,582

4,556
3,516
Total revenues

500,343

485,873
482,130
Costs and expenses:

Cost of sales

373,396

361,256
360,984
Operating, selling, general and administrative expenses

106,510

101,853
97,041
Operating income

20,437

22,764
24,105
Interest:

Debt

1,978

2,044
2,027
Capital lease and financing obligations

352

323
521
Interest income

(152)
(100)
(81)
Interest, net

2,178

2,267
2,467
Loss on extinguishment of debt

3,136

—
—
Income before income taxes

15,123

20,497
21,638
Provision for income taxes

4,600

6,204
6,558
Consolidated net income

10,523

14,293
15,080
Consolidated net income attributable to noncontrolling interest

(661)
(650)
(386)
Consolidated net income attributable to Walmart
 $
9,862
 $
13,643  $
14,694

Net income per common share:

Basic net income per common share attributable to Walmart
 $
3.29
 $
4.40  $
4.58
Diluted net income per common share attributable to Walmart

3.28

4.38
4.57

Weighted-average common shares outstanding:

Basic

2,995

3,101
3,207
Diluted

3,010

3,112
3,217

Dividends declared per common share
 $
2.04
 $
2.00  $
1.96
See accompanying notes.
55___FINANCEBENCH_DELIMITER___Walmart Inc.
Consolidated Balance Sheets

As of January 31,
(Amounts in millions)

2018

2017
ASSETS

Current assets:

Cash and cash equivalents
 $
6,756
 $
6,867
Receivables, net

5,614

5,835
Inventories

43,783

43,046
Prepaid expenses and other

3,511

1,941
Total current assets

59,664

57,689
Property and equipment:

Property and equipment

185,154

179,492
Less accumulated depreciation

(77,479)
(71,782)
Property and equipment, net

107,675

107,710
Property under capital lease and financing obligations:

Property under capital lease and financing obligations

12,703

11,637
Less accumulated amortization

(5,560)
(5,169)
Property under capital lease and financing obligations, net

7,143

6,468

Goodwill

18,242

17,037
Other assets and deferred charges

11,798

9,921
Total assets
 $
204,522
 $
198,825

LIABILITIES AND EQUITY

Current liabilities:

Short-term borrowings
 $
5,257
 $
1,099
Accounts payable

46,092

41,433
Accrued liabilities

22,122

20,654
Accrued income taxes

645

921
Long-term debt due within one year

3,738

2,256
Capital lease and financing obligations due within one year

667

565
Total current liabilities

78,521

66,928

Long-term debt

30,045

36,015
Long-term capital lease and financing obligations

6,780

6,003
Deferred income taxes and other

8,354

9,344

Commitments and contingencies

Equity:

Common stock

295

305
Capital in excess of par value

2,648

2,371
Retained earnings

85,107

89,354
Accumulated other comprehensive loss

(10,181)
(14,232)
Total Walmart shareholders' equity

77,869

77,798
Noncontrolling interest

2,953

2,737
Total equity

80,822

80,535
Total liabilities and equity
 $
204,522
 $
198,825
See accompanying notes.
57


Walmart�Inc.
Consolidated�Statements�of�Income

Fiscal�Years�Ended�January�31,
(Amounts in millions, except per share data)

2019

2018

2017
Revenues:

Net sales
 $
510,329
 $
495,761
 $
481,317
Membership and other income

4,076

4,582

4,556
Total revenues

514,405

500,343

485,873
Costs�and�expenses:

Cost of sales

385,301

373,396

361,256
Operating, selling, general and administrative expenses

107,147

106,510

101,853
Operating�income

21,957

20,437

22,764
Interest:

Debt

1,975

1,978

2,044
Capital lease and financing obligations

371

352

323
Interest income

(217)
(152)
(100)
Interest, net

2,129

2,178

2,267
Loss on extinguishment of debt

—

3,136

—
Other (gains) and losses

8,368

—

—
Income�before�income�taxes

11,460

15,123

20,497
Provision for income taxes

4,281

4,600

6,204
Consolidated�net�income

7,179

10,523

14,293
Consolidated�net�income�attributable�to�noncontrolling�interest

(509)
(661)
(650)
Consolidated�net�income�attributable�to�Walmart
 $
6,670
 $
9,862
 $
13,643

Net�income�per�common�share:

Basic�net�income�per�common�share�attributable�to�Walmart
 $
2.28
 $
3.29
 $
4.40
Diluted�net�income�per�common�share�attributable�to�Walmart

2.26

3.28

4.38

Weighted-average�common�shares�outstanding:

Basic

2,929

2,995

3,101
Diluted

2,945

3,010

3,112

Dividends�declared�per�common�share
 $
2.08
 $
2.04
 $
2.00
See accompanying notes.
48


Walmart Inc.
Consolidated Statements of Income

Fiscal Years Ended January 31,
(Amounts in millions, except per share data)

2020

2019

2018
Revenues:

Net sales
 $
519,926
 $
510,329  $
495,761
Membership and other income

4,038

4,076
4,582
Total revenues

523,964

514,405
500,343
Costs and expenses:

Cost of sales

394,605

385,301
373,396
Operating, selling, general and administrative expenses

108,791

107,147
106,510
Operating income

20,568

21,957
20,437
Interest:

Debt

2,262

1,975
1,978
Finance, capital lease and financing obligations

337

371
352
Interest income

(189)
(217)
(152)
Interest, net

2,410

2,129
2,178
Loss on extinguishment of debt

—

—
3,136
Other (gains) and losses

(1,958)
8,368
—
Income before income taxes

20,116

11,460
15,123
Provision for income taxes

4,915

4,281
4,600
Consolidated net income

15,201

7,179
10,523
Consolidated net income attributable to noncontrolling interest

(320)
(509)
(661)
Consolidated net income attributable to Walmart
 $
14,881
 $
6,670  $
9,862

Net income per common share:

Basic net income per common share attributable to Walmart
 $
5.22
 $
2.28  $
3.29
Diluted net income per common share attributable to Walmart

5.19

2.26
3.28

Weighted-average common shares outstanding:

Basic

2,850

2,929
2,995
Diluted

2,868

2,945
3,010

Dividends declared per common share
 $
2.12
 $
2.08  $
2.04
See accompanying notes.
50___FINANCEBENCH_DELIMITER___Walmart Inc.
Consolidated Statements of Cash Flows

Fiscal Years Ended January 31,
(Amounts in millions)

2020

2019

2018
Cash flows from operating activities:

Consolidated net income
 $
15,201
 $
7,179  $
10,523
Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation and amortization

10,987

10,678
10,529
Unrealized (gains) and losses

(1,886)
3,516
—
(Gains) and losses for disposal of business operations

15

4,850
—
Asda pension contribution

(1,036)
—
—
Deferred income taxes

320

(499)
(304)
Loss on extinguishment of debt

—

—
3,136
Other operating activities

1,981

1,734
1,210
Changes in certain assets and liabilities, net of effects of acquisitions:

Receivables, net

154

(368)
(1,074)
Inventories

(300)
(1,311)
(140)
Accounts payable

(274)
1,831
4,086
Accrued liabilities

186

183
928
Accrued income taxes

(93)
(40)
(557)
Net cash provided by operating activities

25,255

27,753
28,337

Cash flows from investing activities:

Payments for property and equipment

(10,705)
(10,344)
(10,051)
Proceeds from the disposal of property and equipment

321

519
378
Proceeds from the disposal of certain operations

833

876
1,046
Payments for business acquisitions, net of cash acquired

(56)
(14,656)
(375)
Other investing activities

479

(431)
(77)
Net cash used in investing activities

(9,128)
(24,036)
(9,079)

Cash flows from financing activities:

Net change in short-term borrowings

(4,656)
(53)
4,148
Proceeds from issuance of long-term debt

5,492

15,872
7,476
Repayments of long-term debt

(1,907)
(3,784)
(13,061)
Premiums paid to extinguish debt

—

—
(3,059)
Dividends paid

(6,048)
(6,102)
(6,124)
Purchase of Company stock

(5,717)
(7,410)
(8,296)
Dividends paid to noncontrolling interest

(555)
(431)
(690)
Purchase of noncontrolling interest

—

—
(8)
Other financing activities

(908)
(629)
(261)
Net cash used in financing activities

(14,299)
(2,537)
(19,875)

Effect of exchange rates on cash, cash equivalents and restricted cash

(69)
(438)
487

Net increase (decrease) in cash, cash equivalents and restricted cash

1,759

742
(130)
Cash, cash equivalents and restricted cash at beginning of year

7,756

7,014
7,144
Cash, cash equivalents and restricted cash at end of year
 $
9,515
 $
7,756  $
7,014

Supplemental disclosure of cash flow information:

Income taxes paid
 $
3,616
 $
3,982  $
6,179
Interest paid

2,464

2,348
2,450
See accompanying notes.