Walmart 2004 Annual Report Download - page 52

The Company has entered into lease commitments for land and buildings for 11 future locations. These lease commitments with real
estate developers provide for minimum rentals for 20 years, excluding renewal options, which if consummated based on current cost
estimates, will approximate $17 million annually over the lease terms.
There are no recourse provisions which would enable us to recover any amounts paid under the above guarantees from third parties. No
liability has been recorded in our financial statements for these guarantees.
10 Retirement-Related Benefits
In the United States, the Company maintains a Profit Sharing and 401(k) Retirement Savings Plan under which most full-time and many
part-time Associates become participants following one year of employment. The Profit Sharing component of the plan is entirely
funded by the Company, with an additional contribution made by the Company to the Associates’ 401(k) component of the plan. In
addition to the Company contributions to the 401(k) Retirement Savings component of the plan, Associates may elect to contribute a
percentage of their earnings. During fiscal 2004, participants could contribute up to 15% of their pretax earnings, but not more than
statutory limits.
Associates may choose from among 14 different investment options for the 401(k) Retirement Savings component of the plan. For
Associates who did not make any election, their 401(k) balance in the plan is placed in a balanced fund. Associates are immediately
vested in their 401(k) funds and may change their investment options at any time. Additionally, fully vested Associates have the same
14 investment options for the Profit Sharing component of the plan. Associates are fully vested in the Profit Sharing component of the
plan after seven years of service.
Annual contributions to the United States and Puerto Rico 401(k) and profit sharing plans are made at the sole discretion of the
Company, and were $662 million, $574 million and $479 million in fiscal 2004, 2003 and 2002, respectively. In addition, in fiscal 2002,
eligible Associates could choose to receive a cash payout equal to one-half of the Company contribution that otherwise would have
been made into the 401(k) plan. The Company paid $34 million in cash to Associates in lieu of Company contributions to the 401(k)
plan in fiscal 2002.
Employees in foreign countries who are not U.S. citizens are covered by various postemployment benefit arrangements. These plans are
administered based upon the legislative and tax requirements in the country in which they are established. Annual contributions to
foreign retirement savings and profit sharing plans are made at the discretion of the Company, and were $89 million, $73 million and
$55 million in fiscal 2004, 2003 and 2002, respectively.
The Company’s United Kingdom subsidiary, ASDA, has in place a defined benefit pension plan. The plan was underfunded by
$303 million and $206 million at January 31, 2004 and 2003, respectively.
11 Segments
The Company and its subsidiaries are principally engaged in the operation of mass merchandising stores located in all 50 states,
Argentina, Canada, Germany, South Korea, Puerto Rico and the United Kingdom, through joint ventures in China, and through majority-
owned subsidiaries in Brazil and Mexico. The Company identifies segments based on management responsibility within the United States
and for total international units.
The Wal-Mart Stores segment includes the Company’s Discount Stores, Supercenters and Neighborhood Markets in the United States as
well as Wal-Mart.com. The SAM’S CLUB segment includes the warehouse membership Clubs in the United States. The International
segment consists of the Company’s operations in Argentina, Brazil, China, Germany, South Korea, Mexico and the United Kingdom,
which are consolidated using a December 31 fiscal year-end, generally due to statutory reporting requirements. There were no
significant intervening events which materially affected the financial statements. The Company’s operations in Canada and Puerto Rico
are consolidated using a January 31 fiscal year-end. The amounts under the caption “Other” in the following table are corporate
overhead, including our real estate operations. Wal-Mart’s portion of the results of our unconsolidated 37.8% minority interest in
Japanese retailer Seiyu is also included under the caption “Other.”
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