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Investor Presentaiton

The Company has entered into property lease agreements with third parties for compulsory terms ranging from 2 to 15 years. The Company has also entered into finance leases for the rental of residual water treatment plants used to meet environmental protection standards. The terms of these agreements range from 7 to 10 years. Future rental payments are as follows: 13.- TAXES ON PROFITS: Through December 31, 2013, the Company and its subsidiaries, except Walmart Bank and Walmart Central America, have been authorized by the Ministry of Finance and Public Credit to determine their tax results on a consolidated basis. Beginning January 1, 2014, each of the companies of WALMEX shall determine and pay income tax on an individual basis. An analysis of taxes on profits charged to the income statement for the years ended December 31, 2013 and 2012, is as follows: Operating leases Year (compulsory term) Finance leases (minimum payments) December 31, 2014 Ps. 2015 Ps. 321,429 Ps. 311,318 Ps. 723,059 2013 December 31, 2012 817,880 2016 Ps. 272,739 Ps. 915,406 2017 Ps. 193,867 Ps. 509,273 Current year tax Deferred tax Ps. 2018 PS. 130,490 Ps. 439,997 Total Ps. 9,165,940 350,998 9,516,938 Ps. Ps. 8,736,951 499,846 9,236,797 2019 and thereafter PS. 478,282 Ps. 9,622,614 At December 31, 2013, the liability derived from the use of the straight-line method under operating leases was Ps. 524,784, of which Ps. 25,085 is presented in the current liabilities line. Total rent under operating leases charged to the income statement during the years ended December 31, 2013 and 2012 was Ps. 4,551,209 and Ps. 3,614,455, respectively. b) Contingent liability At December 31, 2013 and 2012, the Company recognized a contingent liability for contingent compensation related to the acquisition of Walmart Central America of Ps. 1,069,197 and Ps. 1,190,933, respectively, including amounts payable in less than one year of Ps. 127,674 and Ps. 131,685, respectively. This contingent compensation represents future payments in shares and in cash. An analysis of the payments made by the Company in cash and shares in February of each year to cover the contingent liability payable as part of acquisition is as follows: 2013 2012 Payment in shares Ps. Payment in cash 67,159 Ps. 64,526 63,379 60,894 Total payment of contingent liability Ps. 131,685 Ps. 124,273 Number of Series An analysis of the effects of the temporary differences giving rise to deferred tax assets and liabilities at December 31, 2013 and 2012, is as follows: Property and equipment Inventories Repatriation of earnings of Walmart Central America Walmart Bank available tax loss carryforward Advance collections Other long-term liabilities Other items, net Total December 31, December 31, 2013 Ps. 9,133,637 Ps. ( 663,248) Ps. 1,238,918 2012 8,200,595 ( 787,232) 1,206,647 (1,039,272) ( 846,616) ( 191,539) ( 224,350) ( 239,131) ( 243,378) 1,387,707) 6,851,658 Ps. ( 716,763) 6,588,903 At December 31, 2013, the consolidated effective tax rate is 30.2% (29.0% in 2012). The difference between the statutory tax rate and the effective tax rate is due basically to the effects of annual inflation adjustment and other permanent items. "V" shares issued 2013 Financial and Social Responsibility Report 1,606,084 1,586,861 79
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