Walmart: Segments and Disclosure

The management of Walmart is responsible for measuring the company’s segments
through the use of the operating income. There is a measure of the comparable stores that relate
to the disclosure and segments. The main store that Walmart used to make the comparison is
Sam’s Club. The e-commerce sales are measured by including the sales made online and
through various mobile applications. There is a variation in the method used in measuring
comparable sales. They include net sales and the operating income of Walmart. The company’s
business is seasonal and largely depends on the events calendar and the various religious
holidays and not on their geographical location.
The primary customers for Walmart are Flipkart, Asda, and Advent. The allocation of the
level of profitability is on the shares that the customers have. There is no certainty whether there
will be regulatory approval based on the proposed combination for the customers. There is a
need to meet the sales classification in the future for all the disposal groups. There is an
expectation that there will be a loss as the amount of shared capital is changing.
Flipkart has 81%, Asda 42%, and Advent 80 %. The commitment is towards helping the
customers save money and live a better life. The amount had negative implications on the
operating income of Walmart in the 2019 fiscal year. There is a need to evaluate the capital
shares for each of the segments. The segment with more profits should have the priority and get a
larger portion of the capital share. The aim will be to capitalize on their capital gain and increase
their profits in the future.