Summary
Walmart Inc. announced the completion of the sale of its United Kingdom retail business, Asda Group Limited. This divestiture resulted in a significant non-cash loss of approximately $5.7 billion, after tax, recognized in the fourth quarter of the fiscal year ended January 31, 2021. This loss encompasses both the sale itself and the derecognition of the Asda pension plan. Looking ahead, Walmart anticipates an earnings per share (EPS) dilution of approximately $0.20 in the fiscal year ending January 31, 2022. This dilution is primarily attributed to the absence of net income from the Asda business, assuming the transaction proceeds are held as cash. Investors should note that this information is provided under Regulation FD and is not considered 'filed' for certain regulatory purposes.
Key Highlights
- 1Completed sale of Asda Group Limited, Walmart's UK retail business.
- 2Recognized a non-cash loss of approximately $5.7 billion (after tax) in Q4 FY21.
- 3The loss includes both the loss on sale and loss from derecognition of the Asda pension plan.
- 4Expects an approximate $0.20 EPS dilution in FY22 due to the divestiture.
- 5EPS dilution is primarily due to the absence of Asda's net income.
- 6Transaction proceeds are assumed to be held in cash for EPS dilution calculation.
- 7Information disclosed under Regulation FD, not considered 'filed' for Section 18 liability.