8-KRegulation FDExhibits & Filings

Walmart Inc. 8-K Report, Regulation FD Disclosure (Oct 2, 2020)

Filed October 2, 2020For Securities:WMT

Summary

Walmart Inc. (WMT) has announced the agreement to sell its entire stake in ASDA Group Limited, its United Kingdom retail subsidiary. This transaction is a significant strategic move for Walmart, allowing it to divest its UK operations. Investors should note that Walmart anticipates recognizing a substantial non-cash loss of approximately $2.5 billion after tax in fiscal year 2021 due to this sale. This estimate is subject to change based on currency fluctuations and purchase price adjustments prior to the deal's expected closing in the first half of fiscal year 2022, which is contingent on regulatory approvals.

Key Highlights

  • 1Walmart is selling its UK retail business, ASDA Group Limited.
  • 2A non-cash loss of approximately $2.5 billion (after tax) is expected in fiscal year 2021 from the sale.
  • 3The estimated loss is subject to adjustments for currency exchange rates and purchase price.
  • 4The transaction is anticipated to close in the first half of fiscal year 2022, pending regulatory approvals.
  • 5Walmart expects approximately $0.25 per share dilution in the first full year post-completion, primarily due to the absence of ASDA's net income.
  • 6The impact of cash proceeds from the sale on offsetting dilution will be determined later.
  • 7This disclosure is made under Regulation FD, with information furnished rather than filed.

Frequently Asked Questions

Walmart Inc. is disclosing an agreement to sell its entire stake in ASDA Group Limited, its retail business in the United Kingdom.

Walmart expects to recognize a non-cash loss of approximately $2.5 billion, after tax, in fiscal year 2021. Additionally, it anticipates an earnings per share dilution of about $0.25 in the first full year after the transaction closes.

The transaction is expected to close in the first half of fiscal year 2022, subject to obtaining necessary regulatory approvals.

Yes, the estimated non-cash loss of $2.5 billion could fluctuate due to changes in currency exchange rates and purchase price adjustments until the closing date. The estimate also does not include amounts related to ASDA's pension plan settlement previously disclosed.