Walmart 2006 Annual Report Download - page 47

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There are no recourse provisions which would enable us to
recover from third parties any amounts paid under the above
guarantees. No liability for these guarantees has been recorded
in our fi nancial statements.
The Company has entered into lease commitments for land and
buildings for 60 future locations. These lease commitments with
real estate developers provide for minimum rentals ranging from
5 to 35 years, which if consummated based on current cost esti-
mates, will approximate $95 million annually over the lease terms.
10 RETIREMENT-RELATED BENEFITS
In the United States, the Company maintains a Profi t 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 Profi t 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 fi scal 2006, participants could
contribute up to 25% of their pretax earnings, but not more than
statutory limits.
Associates may choose from among 13 different investment
options for the 401(k) Retirement Savings component of the plan.
For associates who did not make an 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 13 investment options for the Profi t Sharing component of
the plan. Associates are fully vested in the Profi t Sharing compo-
nent of the plan after seven years of service.
Annual contributions made by the Company to the United States
and Puerto Rico Profi t Sharing and 401(k) Retirement Savings
Plans are made at the sole discretion of the Company, and were
$827 million, $756 million and $662 million for fi scal 2006, 2005
and 2004, respectively.
Employees in foreign countries who are not U.S. citizens are covered
by various post-employment benefi t arrangements. These plans are
administered based upon the legislative and tax requirements in the
country in which they are established. Annual contributions to for-
eign retirement savings and profi t sharing plans are made at the dis-
cretion of the Company, and were $244 million, $199 million and
$123 million in fi scal 2006, 2005 and 2004, respectively.
The Company’s subsidiaries in the United Kingdom and Japan have
defi ned benefi t pension plans. The plan in the United Kingdom was
underfunded by $332 million and $419 million at January 31, 2006
and 2005, respectively. The plan in Japan was underfunded by
$228 million at January 31, 2006.
11 SEGMENTS
At January 31, 2006, the Company and its subsidiaries were princi-
pally engaged in the operation of retail stores located in all 50 states,
Argentina, Brazil, Canada, Germany, South Korea, Puerto Rico and
the United Kingdom, through joint ventures in China, and through
majority-owned subsidiaries in Japan and Mexico. The Company
identifi es segments based on management responsibility within the
United States and in total for international units.
The Wal-Mart Stores segment includes the Company’s supercenters,
discount stores and Neighborhood Markets in the United States,
as well as Walmart.com. The SAM’S CLUB segment includes the
warehouse membership clubs in the United States as well as
samsclub.com. At January 31, 2006, the International segment
consisted of the Company’s operations in Argentina, Brazil,
China, Germany, Mexico, South Korea, Japan and the United
Kingdom, which are consolidated using a December 31 fi scal year-
end, generally due to statutory reporting requirements. There were
no signifi cant intervening events which materially affected the
fi nancial statements. The Company’s operations in Canada and
Puerto Rico are consolidated using a January 31 fi scal year-end. The
amounts under the caption “Other” in the following table include
unallocated corporate overhead. The Company’s portion of the
results of our unconsolidated minority interest in Seiyu prior to
December 20, 2005, and our unconsolidated minority interest
in CARHCO are also included under the caption “Other.”