Walmart had a solid year in fiscal 2015 as each operating segment improved its performance as the year progressed. While net sales grew nearly 2 percent and operating income increased 1 percent, our underlying performance was actually stronger. Our results were impacted by significant headwinds from currency exchange rate fluctuations. These currency headwinds may continue throughout this current year. Our top priority is to run great stores in all of our markets. That is the only way to have sustainable increases in comp sales, as well as top line growth. We’re pleased that e-commerce sales rose faster than the market globally last year at approximately 22 percent. As we continue to integrate our websites and mobile apps with our stores and clubs, we’ll enable customers to shop anytime and anywhere they want.

Walmart is well-positioned to deliver for customers because we have the financial strength to invest in growth. Our AA credit rating, unmatched in retail, is a testament to our financial discipline and strong balance sheet. We’ve consistently delivered strong cash flow for many years. In fact, in fiscal 2015, Walmart generated free cash flow of more than $16 billion, the best performance in over a decade. Our return on investment was 16.9 percent, as we continue to invest in store growth and e-commerce initiatives.

Retail is changing and we’re investing to serve customers more effectively, which we believe will benefit shareholders over time. We know that customers expect value, a broad assortment, and various options in how and where they shop. They also want an enjoyable shopping experience, both in stores and online. Our fiscal 2016 investments in associate wages and training, as well as our stepped-up investments in global e-commerce, will strengthen our ability to deliver a great experience for customers. These important investments will make us even more relevant in the future.

Investing for customers to drive growth

We take a long-term view as we position our business for the future. Globally, customers will always need to shop in stores, and we will continue to serve customers with a variety of formats. That is why we will add 26–30 million net retail square feet this year with new stores and clubs around the world, to bring Walmart closer to customers.

Sometimes, it is more convenient for customers to shop online and have their order delivered to their doorstep. Other times, they may want to pick up their online order when they are already shopping at our store. We are building the capabilities to provide customers with best-in-class e-commerce – from user-friendly websites and mobile apps to high-tech fulfillment centers and the infrastructure required for grocery home shopping. Our incremental investments in and around e-commerce will be well over $1 billion this year, and we will continue to seek the right balance between sales growth and profitability as we grow our e-commerce business.

Investing in our people and shareholders

This year, we’re making a $1 billion incremental investment in strategic people initiatives within our U.S. businesses. This wage restructuring and expanded training opportunities will help hourly associates earn higher pay and advance their careers. This investment will benefit our customers through a better store and club experience, leading to higher sales and returns.

I’m proud of Walmart’s long record of consistent returns to shareholders. After growth initiatives, we use our remaining cash flows to provide shareholder returns through dividends and share repurchases. Last year, we returned over $7 billion to shareholders. This year, we increased our annual dividend to $1.96 per share, representing 42 consecutive years of dividend increases.

As I close, I encourage you to review our financial results in the next section. Walmart’s business is strong, and we are confident that our strategic investments will make Walmart’s future even brighter.