Walmart Inc. (WMT)

Sales

Walmart recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise to the customer. eCommerce sales include shipping revenue and are recorded upon delivery to the customer. Additionally, estimated sales returns are calculated using historical experience of actual returns as a percent of sales.

Membership Fee Revenue

Walmart recognizes membership fee revenue both in the U.S. and internationally over the term of the membership, which is typically 12 months.

Membership fee revenue is included in membership and other income in Walmart’s Consolidated Statements of Income. The deferred membership fee is included in accrued liabilities in Walmart’s Consolidated Balance Sheets.

Gift Cards

Customer purchases of gift cards, to be utilized in Walmart’s stores or on Walmart’s eCommerce websites, are not recognized as revenue until the card is redeemed and the customer purchases merchandise using the gift card. Gift cards in the U.S. and some countries do not carry an expiration date; therefore, customers and members can redeem their gift cards for merchandise indefinitely. Gift cards in some foreign countries where Walmart does business have expiration dates. A certain number of gift cards, both with and without expiration dates, will not be fully redeemed. Management estimates unredeemed gift cards and recognizes revenue for these amounts when it is determined the likelihood of redemption is remote. Management periodically reviews and updates its estimates.

Financial and Other Services

Walmart recognizes revenue from service transactions at the time the service is performed. Generally, revenue from services is classified as a component of net sales in Walmart’s Consolidated Statements of Income.

Source: 10-K (filing date: 2018-03-30).

Walmart Inc., Income Statement, Revenues

USD $ in millions

Based on: 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21), 10-K (filing date: 2013-03-26).

Item	Description	The company
Net sales	Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).	Walmart Inc.’s net sales increased from 2016 to 2017 and from 2017 to 2018.