Walmart 2003 Annual Report Download - page 49

during the relevant time period. The class seeks amendment of the Plan to include coverage for prescription contraceptives,
back pay for all members in the form of reimbursement of the cost of prescription contraceptives (from no earlier than
September 5, 1999), pre-judgment interest and attorney fees and coverage of prescription contraceptives and attendant
office visits. The complaint alleges that the Company’s Health Plan violates Title VII’s prohibition against gender
discrimination in that the Reproductive Systems provision does not provide coverage for contraceptives.
The Company is a defendant in a lawsuit that was filed on August 31, 2001, in the United States District Court for the
Eastern District of Kentucky. EEOC (Janice Smith) v. Wal-Mart Stores, Inc. is an action brought by the EEOC on behalf
of Janice Smith and all other females who made application or transfer requests at the London, Kentucky Distribution
Center from 1995 to the present, and who were not hired or transferred into the warehouse positions for which they
applied. The class seeks back pay for those females not selected for hire or transfer during the relevant time period.
The class also seeks injunctive and prospective affirmative relief. The complaint alleges that the Company based hiring
decisions on gender in violation of Title VII of the 1964 Civil Rights Act as amended. The EEOC can maintain this action
as a class without certification.
The Company is a defendant in seven putative class actions filed in Massachusetts, in which the plaintiffs allege that
the Company violated a state statute requiring individual price stickers to be affixed to certain items offered for retail
sale. Plaintiffs seek equitable relief requiring Wal-Mart to affix individual prices to such items when they are placed
for sale in Massachusetts, compensatory damages calculated at $25 for each transaction in Massachusetts since 1998,
treble damages, and attorney fees. The first suit was filed in the Plymouth County Superior Court on November 26, 2002.
Wal-Mart recently filed a motion to consolidate the actions; motions to dismiss the statutory damage claims as to the
class members; and a motion to stay discovery pending the outcome of the other motions. Class certification has not
been decided in any of these cases.
9 Commitments
The Company and certain of its subsidiaries have long-term leases for stores and equipment. Rentals (including, for
certain leases, amounts applicable to taxes, insurance, maintenance, other operating expenses and contingent rentals)
under all operating leases were $1,091 million, $1,043 million, and $893 million in 2003, 2002, and 2001, respectively.
Aggregate minimum annual rentals at January 31, 2003, under non-cancelable leases are as follows (in millions):
Fiscal Year Operating Leases Capital Leases
2004 $589 $440
2005 576 431
2006 560 428
2007 546 419
2008 515 412
Thereafter 5,202 3,152
Total minimum rentals $ 7,988 5,282
Less estimated executory costs 57
Net minimum lease payments 5,225
Less imputed interest at rates ranging from 6.1% to 14.0% 2,048
Present value of minimum lease payments $ 3,177
Certain of the leases provide for contingent additional rentals based on percentage of sales. The additional rentals
amounted to $51 million, $63 million and $56 million in 2003, 2002 and 2001, respectively. Substantially all of the
store leases have renewal options for additional terms of from 5 to 30 years at comparable rentals.
We have guaranteed specific obligations of certain third party construction contractors in the amount of $110 million.
In connection with debt financing of $500 million we entered into related interest rate swaps; should an unlikely event
terminate these financing transactions and the related swaps we would be liable for a termination payment that at
January 31, 2003 approximated $99 million. Additionally we have entered into agreements with third party distribution
companies that would require us to purchase specified transportation equipment for up to approximately $133 million
in the unlikely termination of some or all of these agreements.
The Company has entered into lease commitments for land and buildings for ten future locations. These lease
commitments with real estate developers provide for minimum rentals for 10 to 25 years, excluding renewal options,
which if consummated based on current cost estimates, will approximate $12 million annually over the lease terms.
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