Walmart 2013 Annual Report Download - page 54

52 || Walmart 2013 Annual Report
11 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 $2.6 billion, $2.4 billion and $2.0 billion in  scal 2013, 2012 and
2011, respectively.
Aggregate minimum annual rentals at January 31, 2013, under
non-cancelable leases are as follows:
(Amounts in millions) Operating Capital
Fiscal Year Leases Leases
2014 $ 1,722 $ 620
2015 1,598 584
2016 1,480 535
2017 1,384 490
2018 1,246 449
Thereafter 9,373 3,590
Total minimum rentals $16,803 $6,268
Less estimated executory costs 55
Net minimum lease payments 6,213
Less imputed interest 2,863
Present value of minimum lease payments $3,350
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 2013, 2012 and 2011. Substantially all of the Company’s
store leases have renewal options, some of which may trigger an
escalation in rentals.
The Company has future lease commitments for land and buildings for
approximately 366 future locations. These lease commitments have
lease terms ranging from 4 to 50 years and provide for certain minimum
rentals. If executed, payments under operating leases would increase by
$82 million for  scal 2014, based on current cost estimates.
In connection with certain long-term debt issuances, the Company
could be liable for early termination payments if certain unlikely events
were to occur. At January 31, 2013, the aggregate termination payment
would have been $104 million. The arrangements pursuant to which
these payments could be made expire in  scal 2019.
12 Retirement-Related Bene ts
Through  scal 2011, the Company maintained separate pro t sharing
and 401(k) plans for associates in the United States and Puerto Rico,
under which associates generally became participants following one
year of employment. The pro t sharing component was entirely funded
by the Company, and the Company also made additional contributions
to the 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.
E ective February 1, 2011, the Company terminated the previous pro t
sharing and 401(k) plans and o ered new safe harbor 401(k) plans for
associates in the United States and Puerto Rico, under which associates
generally become participants following one year of employment.
Under the safe harbor 401(k) plans, the Company matches 100% of
participant contributions up to 6% of annual eligible earnings. The
matching contributions 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.
Employees in international countries who are not U.S. citizens are
covered by various de ned contribution post-employment bene t
arrangements. These plans are administered based upon the legislative
and tax requirements in the countries in which they are established.
Additionally, the Company’s subsidiaries in the United Kingdom (“ASDA”)
and Japan have de ned bene t pension plans. The plan in the United
Kingdom was underfunded by $346 million and $339 million at January 31,
2013 and 2012, respectively. The plan in Japan was underfunded by
$338 million and $325 million at January 31, 2013 and 2012, respectively.
These underfunded amounts are recorded as liabilities in the Company’s
Consolidated Balance Sheets in deferred income taxes and other. Certain
other international operations also have de ned bene t arrangements
that are not signi cant.
In  scal 2012, 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 paid
approximately $70 million in  scal 2012 to the plan participants. The
related curtailment gain of approximately $90 million was recorded
in  scal 2012 as a decrease to deferred actuarial losses in other
comprehensive income.
The following table summarizes the contribution expense related to the
Company’s retirement-related bene ts for  scal 2013, 2012 and 2011:
Fiscal Years Ended January 31,
(Amounts in millions) 2013 2012 2011
De ned contribution plans:
U.S. $ 818 $ 752 $1,098
International 166 230 75
De ned bene t plans:
International 26 54 146
Total contribution expense for
retirement-related bene ts $1,010 $1,036 $1,319
Notes to Consolidated Financial Statements