Our process of assessing and responding to the governmental investigations and the shareholder lawsuits continues. Executive Vice President, President and Chief Executive Officer, Global eCommerce, beginning in January 2012. We do not believe it will be necessary to repatriate cash and cash equivalents held outside of the U. Second Supplemental Indenture, dated December 19, 2014, between Wal-Mart Stores, Inc. Thus, our accounting estimates may change from period to period. Derivative Lawsuits: In re Wal-Mart Stores, Inc.
Changes in the fair values of these derivative instruments are recorded in earnings, but are offset by corresponding changes in the fair values of the hedged items and, accordingly, do not impact the Company's Consolidated Statements of Income. For fiscal 2016 , approximately 79% of the Walmart U. The forward-looking statements included in this Annual Report and that we make elsewhere are subject to certain factors, in the United States and internationally, that could materially affect our financial performance, our results of operations, including our sales, earnings per share or com- parable store sales or comparable club sales and our effective income tax rate for any period and our business operations, business strategy, plans, goals or objectives. Historically, its highest sales volume and segment operating income have occurred in the fiscal quarter ending January 31. Management estimates unredeemed shopping cards and recognizes revenue for these amounts over shopping card historical usage periods based on historical redemption rates. The plaintiffs allege that the Company failed to pay class members for all hours worked and prevented class members from taking their full meal and rest breaks. In February 2014, a division of the Health Department of the City of Vitória notified Walmart Brazil that a wastewater leak had been observed in the parking lot of a store.
Indicate by check mark whether the registrant 1 has filed all reports required to be filed by Section 13 or 15 d of the Securities Exchange Act of 1934 during the preceding 12 months or for such shorter period that the registrant was required to file such reports , and 2 has been subject to such filing requirements for at least the past 90 days. The Company is focused on resolving tax audits as expeditiously as possible. See Note 14 for further discussion of the Company's segments. The Company expects that there will be on-going media and governmental interest, including additional news articles from media publications on these matters, which could impact the perception among certain audiences of the Company's role as a corporate citizen. We are proud of our record of consistent and strong performance, even during times when the glob- al economy was volatile. On January 30, 2015, the Employment Tribunal held a case management conference in order to set a schedule for addressing jurisdictional challenges and other issues involved in the first phase of the litigation.
Our Walmart International segment is comprised of our wholly-owned subsidiaries operating in Argentina, Brazil, Canada, China, India, Japan and the United Kingdom; our majority-owned subsidiaries operating in Africa which includes Botswana, Ghana, Lesotho, Malawi, Mozambique, Namibia, Nigeria, South Africa, Swaziland, Tanzania, Uganda and Zambia , Central America which includes Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua , Chile, China and Mexico; and our joint ventures and other controlled subsidiaries in China. The occurrence of one or more natural disasters, such as hurricanes, cyclones, typhoons, tropical storms, floods, earthquakes, tsunamis, weather conditions such as major or extended winter storms, droughts and tornadoes, whether as a result of climate change or otherwise, severe changes in climate and geo-political events, such as civil unrest or terrorist attacks in a country in which we operate or in which our suppliers are located could adversely affect our operations and financial performance. Finally, on February 20, 2013, the plaintiffs' attorneys filed another similar complaint in the United States District Court for the Western District of Wisconsin, entitled Ladik v. The jury found in favor of the Company on the plaintiffs' meal-period claims. On October 28, 2011, the attorneys for the plaintiffs in the Dukes case filed a similar complaint in the United States District Court for the Northern District of Texas entitled Odle v.
In that year, the first Wal-Mart Discount City, which was a discount store, opened in Rogers, Arkansas. The method of calculating comparable store and club sales varies across the retail industry. From time to time, we revise the measurement of each segment's operating income or other measures, including any corporate overhead allocations and other items impacting the measures used to evaluate our segment's results, as dictated by the information regularly reviewed by our chief operating decision maker. In connection with certain debt financing, we could be liable for early termination payments if certain unlikely events were to occur. Although we leveraged operating expenses in fiscal 2013 and 2012, operating income for both years grew at a slower rate than sales. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Walmart International operates units in three major categories: retail, wholesale and other.
Moreover, the economies of some of the countries in which we have operations have in the past suffered from high rates of inflation and currency devaluations, which, if they occurred again, could adversely affect our financial performance. Although we do not presently believe that these matters will have a material adverse affect on our business, given the inherent uncertainties in such situations, we can provide no assurance that these matters will not be material to our business in the future. We also compete with others for desirable sites for new or relocated retail units. Forward-looking statements that we make or that are made by others on our behalf are based on a knowledge of our business and the environment in which we operate and assumptions that we believe to be reasonable at the time such forward-looking statements are made, but because of the factors described and listed above, as well as the other risks, uncertainties and factors we disclose below and in the other reports mentioned above, as well as other risks not known to us at this time, or as a result of changes in facts, assumptions not being realized or other circumstances, actual results may differ materially from those contemplated in the forward-looking statements. Concerns regarding the safety of food and non-food products that we source from our suppliers or that we prepare and then sell could cause customers to avoid purchasing certain products from us, or to seek alternative sources of supply for all of their food and non-food needs, even if the basis for the concern is outside of our control.
We owned and third parties operated two facilities, and we leased and operated three facilities. Recurring Fair Value Measurements The Company holds derivative instruments that are required to be measured at fair value on a recurring basis. We also operate some restaurants and, on a limited basis, consumer finance operations. We caution readers not to place undue reliance on such forward-looking statements, which speak only as of their dates. In addition, our e-commerce website includes Marketplace, a feature of the website that permits third parties to sell merchandise on walmart.
. Our expansion strategy in the U. Also, we have investments in unconsolidated entities. Consumers are increasingly embracing shopping online and through mobile commerce applications. Walmart Brazil is cooperating with the agency and monitoring the affected area.
Management does not believe any possible loss or the range of any possible loss that may be incurred in connection with this matter will be material to the Company's financial condition or results of operations. The Company also offers health-care benefits to eligible full-time and part-time associates in the U. If we cannot offset the increases in our wage expenses resulting from those wage increases by increasing our gross profit, achieving decreases in our operating, selling, general and administrative expense or a combination of both in the year ending January 31, 2018 and thereafter, our consolidated operating income and our consolidated income from continuing operations could continue to be less than our consolidated operating income and consolidated income from continuing operations for our fiscal years prior to fiscal 2017. The Company's process of assessing and responding to the governmental investigations and the shareholder lawsuits continues. Sam's Club accounted for approximately 12% of our fiscal 2014 net sales. These risks are not the only risks that we face.