Examples: SG&A expenses for Walmart and Visa
In practice, companies may define SG&A expenses in their own way to some degree. You can see this when comparing income statements from different public companies. Some include only a single SG&A line within operating expenses, while others may break out multiple expense types and separate selling expenses from general and administrative costs.
The examples below from Walmart (NYSE:WMT) and Visa (V +0.61%) demonstrate two different reporting strategies for SG&A expenses.
Mass-market retailer Walmart reported $130 billion in "operating, selling, general and administrative expenses" for its fiscal year ended Jan. 31, 2024. This line item was $127 billion in fiscal year 2023 and $117 billion in fiscal year 2022.
Walmart's income statement deducts cost of sales and the operating/SG&A expenses from total revenues to calculate operating income. Items below the operating income line include interest, loss on extinguishment of debt, and other gains and losses.
Payment processor Visa reports on operating expenses in more detail. The company's year-end income statements include seven line items within the operating expense bucket.
General and administrative expenses are on one line, while marketing is on another. Combined, these two totaled $2.6 billion in Visa's fiscal year ended Sept. 30, 2023. The previous year's total was $2.5 billion, up from $2.1 billion in fiscal year 2021.
Other operating expenses Visa breaks out include personnel, network and processing, professional fees, depreciation and amortization, and litigation provision. Visa includes all costs except interest, investment income, and taxes as operating expenses. There is no cost of sales section on Visa's income statement.
