Walmart Reports $5.7 Billion Loss on Asda Sale

Walmart Inc. has disclosed that it has sold its retail business in the United Kingdom, Asda Group Limited, for an undisclosed price. The company recorded a non-cash loss of approximately $5.7 billion after taxes in the fourth quarter of its fiscal year ended January 31, 2021. This loss includes the loss on sale as well as the loss associated with the derecognition of the Asda pension plan. The sale is expected to result in earnings per share dilution of approximately $0.20 in the fiscal year ending January 31, 2022.

Key Takeaways:

• Walmart has sold its retail business in the UK, Asda Group Limited, for an undisclosed price.
• The sale resulted in a non-cash loss of approximately $5.7 billion after taxes in the fourth quarter of fiscal year 2021.
• The loss includes the loss on sale as well as the loss associated with the derecognition of the Asda pension plan.
• The sale is expected to result in earnings per share dilution of approximately $0.20 in the fiscal year ending January 31, 2022.
• The loss was recognized in the fourth quarter of fiscal year 2021 when the business met the held for sale accounting criteria.
• Walmart considers the estimated earnings per share dilution related to this transaction to be a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995.

Statistics:

• Non-cash loss: $5.7 billion
• Earnings per share dilution: $0.20
• Fiscal year ending: January 31, 2022
• Date of sale: February 16, 2021

Sources:

• Walmart Inc. (Form 8-K filing, 2021)
• Securities Exchange Act of 1934 (anticipatory)
• Securities Act of 1933 (rule 235)