Sam’s Club did not leverage expenses for fiscal 2014 as operating
expenses as a percentage of segment net sales increased 26 basis points,
when compared to the previous fiscal year. The increase in operating
expenses as a percentage of segment net sales was primarily due to a
$59 million charge for the implementation of a new in-club staffing
structure and the pending closure of one club, as well as a state excise
tax refund credit we received in the previous fiscal year. Sam’s Club
leveraged expenses for fiscal 2013 as operating expenses as a percentage
of segment net sales decreased 9 basis points, when compared to the
previous fiscal year. The fiscal 2013 decrease was due to improved wage
management, a state excise tax refund credit we received and lower
expenses in connection with club remodels.