According to the consolidated statements of income of Walmart, the operating, selling, general and administrative expenses (operating expenses in short) in 2018 amounted to $106.5 billion.

Using the footnotes to the financial statements and other information available throughout the 10-K and the proxy statement, try to identify specific cost items that are included in the expenses such as advertising, rent, etc. Some of the specific costs are listed in the 10-K report, while others may need to be estimated. If you need to make an estimation, set up a set of reasonable assumptions based on relevant facts and make the assumptions explicit.

Additionally, explain what strategic insights you could get from analyzing operating expenses more specifically. Why do you think firms typically do not reveal different components of their expenses?

10K report

http://www.corporatereport.com/walmart/2018/ar/Walmart_Form_10-K_01-31-2018.pdf

Proxy Report

http://s2.q4cdn.com/056532643/files/doc_financials/2018/annual/58888_Walmart_2018_Proxy_Bookmarked.pdf