Walmart 2011 Annual Report Download - page 50

48 Walmart 2011 Annual Report
13 Commitments
The Company and certain of its subsidiaries have long-term leases for
stores and equipment. Rentals (including amounts applicable to taxes,
insurance, maintenance, other operating expenses and contingent rentals)
under operating leases and other short-term rental arrangements were
$2.0 billion in fiscal 2011 and $1.8 billion in each of fiscal 2010 and
2009. Aggregate minimum annual rentals at January 31, 2011, under
non-cancelable leases are as follows:
(Amounts in millions) Operating Capital
Fiscal Year Leases Leases
2012 $ 1,406 $ 609
2013 1,336 574
2014 1,271 545
2015 1,205 496
2016 1,120 462
Thereafter 7,785 3,230
Total minimum rentals $14,123 $ 5,916
Less estimated executory costs (51)
Net minimum lease payments 5,865
Less imputed interest (2,379)
Present value of minimum lease payments $ 3,486
Certain of the Company’s leases provide for the payment of contingent
rentals based on a percentage of sales. Such contingent rentals were
immaterial for scal years 2011, 2010 and 2009. Substantially all of the
Company’s store leases have renewal options, some of which may
trigger an escalation in rentals.
In connection with certain debt nancing, we could be liable for early
termination payments if certain unlikely events were to occur. At
January 31, 2011, the aggregate termination payment would have been
$84 million. The arrangements pursuant to which these payments
could be made expire in scal 2019.
The Company has future lease commitments for land and buildings
for approximately 424 future locations. These lease commitments
have lease terms ranging from 4 to 30 years and provide for certain
minimum rentals. If executed, payments under operating leases
would increase by $109 million for scal 2012, based on current
cost estimates.
14 Retirement-Related Benets
The Company maintains separate Prot Sharing and 401(k) Plans for
associates in the United States and Puerto Rico, under which associates
generally become participants following one year of employment.
Through scal 2011, the Prot Sharing component of the plan was
entirely funded by the Company, and the Company made an additional
contribution to the associates’ 401(k) component of the plan. In addition
to the Company’s contributions, associates could elect to contribute a
percentage of their earnings to the 401(k) component of the plan.
Beginning in scal 2012, the Company will oer a safe harbor 401(k) plan
to all eligible United States associates. The Company will match 100%
of participant contributions up to 6% of annual eligible earnings. The
Company will oer the same matching contribution to all eligible Puerto
Rico associates. The matching contributions will immediately vest at 100%
for each associate. Participants can contribute up to 50% of their pretax
earnings, but not more than the statutory limits. Participants age 50 or
older may defer additional earnings in catch-up contributions up to the
maximum statutory limits.
Annual contributions made by the Company to the United States and
Puerto Rico Prot Sharing and 401(k) Plans are made at the sole discretion
of the Company. Contribution expense associated with these plans was
$1.1 billion in scal 2011 and 2010 and $1.0 billion in scal 2009.
Employees in international countries who are not U.S. citizens are covered
by various post-employment benet arrangements. These plans are
administered based upon the legislative and tax requirements in the
countries in which they are established. Annual contributions to international
retirement savings and prot sharing plans are made at the discretion
of the Company, and were $221 million, $218 million and $210 million in
scal 2011, 2010 and 2009, respectively.
The Company’s subsidiaries in the United Kingdom and Japan have
dened benet pension plans. The plan in the United Kingdom was
underfunded by $494 million and $339 million at January 31, 2011 and
2010, respectively. The plan in Japan was underfunded by $309 million and
$249 million at January 31, 2011 and 2010, respectively. These underfunded
amounts have been recorded in “Deferred income taxes and other” in
our Consolidated Balance Sheets at January 31, 2011 and 2010. Certain
other international operations have dened benet arrangements that
are not signicant.
In February 2011, ASDA and the trustees of ASDA’s dened benet plan
agreed to remove future benet accruals from the plan and, with the
consent of a majority of the plan participants, also removed the link
between past accrual and future pay increases. In return, ASDA will pay
£43 million (approximately $70 million) in compensation costs to the plan
participants. This curtailment charge will be recorded in expense in the
rst quarter of scal 2012.
Notes to Consolidated Financial Statements