Adjusted EPS Financial Overview
Non-GAAP measures - adjusted EPS
Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC's rules because it excludes certain
amounts included in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure
calculated in accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the
performance with that of the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart's core earnings performance and
the ability to make a more informed assessment of such core earnings performance with that of the prior year.
We adjust for the unrealized and realized gains and losses on our equity and other investments each quarter because although the investments are strategic decisions for the
company's retail operations, management's measurement of each strategy is primarily focused on the operational results rather than the fair value of such investments.
Additionally, management does not forecast changes in the fair value of its equity and other investments. Accordingly, management adjusts EPS each quarter for the
realized and unrealized gains and losses related to those equity investments.
We have calculated Adjusted EPS for the trailing five quarters as well as the prior year comparable periods by adjusting EPS for the relevant adjustments for each period
presented.
Three Months Ended Apr 30, 2023
Three Months Ended Apr 30, 2022
Percent
Change
Diluted earnings per share:
Reported EPS
Adjustments:
$0.62
$0.74
-16.2%
Pre-Tax
Impact
Tax
NCI
Impact¹² Impact4
Unrealized and realized (gains) and losses on equity and other investments
$1.13
$(0.27)
$(0.01)
Net Impact
$0.85
Pre-Tax
Impact
Tax
$0.71
Impact¹³
$(0.15)
1.3
NCI
Impact
Net Impact
$0.56
Adjusted EPS
$1.47
$1.30
+13.1%
Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions.
2
3
4
The reported effective tax rate was 29.5% for the three months ended April 30, 2023. Adjusted for the above item, the effective tax rate was 26.5% for the three months ended April 30, 2023.
The reported effective tax rate was 27.5% for the three months ended April 30, 2022. Adjusted for the above item, the effective tax rate was 24.9% for the three months ended April 30, 2022.
Calculated based on the ownership percentages of our noncontrolling interests.View entire presentation