Substantially all of the Companys store and club leases have renewal options, some of which include escalation clauses causing an increase in rents. Our Walmart International segment is comprised of our wholly-owned subsidiaries operating in Argentina, Brazil, Canada, Japan, and the United Kingdom; our majority-owned subsidiaries operating in Chile, Mexico and five countries in Central America; our joint ventures in India and China and our other controlled subsidiaries in China. The Department alleges that the Company provided certain items to the contractor for recycling that should have been managed as hazardous waste. Our Sams Club segment competes with other wholesale club operators, as well as discount retailers, retail and wholesale grocers and general merchandise wholesalers and distributors, gasoline stations, as well as internet-based retailers, wholesalers and catalog businesses. As a result, the Companys Petition for Rehearing En Banc was denied as moot. If we are unable to locate, to attract or to retain qualified personnel, if our costs of labor or related costs increase significantly or if new or revised labor laws, rules or regulations are adopted, our financial performance could be affected adversely.
Our discount stores range in size from 30,000 square feet to 219,000 square feet, with an average size of approximately 106,000 square feet. During fiscal 2016 , approximately 77% of the Walmart International segment's purchases passed through these distribution facilities. Our forward-looking statements also include statements of our strategies, plans and objectives for our operations, including areas of future focus in our operations, and the assumptions underlying any of the forward-looking statements we make. Consequently, this cautionary statement qualifies all of the forward-looking statements we make or that are made on our behalf, including those made herein and that are incorporated by reference herein. As a result of our expansion activities in countries outside the United States, we expect that our Walmart International operations could account for a larger portion of our net sales in future years. In 1992, we began our first international initiative when we entered into a joint venture in Mexico, in which we owned a 50% interest along with Cifra S. The Sams Club segments business is seasonal to a certain extent due to different calendar events, national and religious holidays, as well as different climatic conditions.
Our digital and physical presence provides customers access to our broad assortment anytime and anywhere. Our Walmart International segment consists of retail operations in 14 countries. Internationally, we compete with retailers who operate department, drug, variety and specialty stores, supermarkets, supercenter-type stores, hypermarts, wholesale clubs, internet-based retailers and catalog businesses. If we do not maintain the security of customer-related information, we could damage our reputation with customers, incur substantial additional costs and become subject to litigation. Our supercenters compete with other supercenter-type stores, hypermarts, discount stores, supermarkets, department, drug, variety and specialty stores, many of which are national or regional chains.
The Company sells similar individual products and services in each of its segments. If we are unable to locate, to attract or to retain qualified personnel, the quality of service we provide to our customers may decrease and our financial performance may be adversely affected. Sam's Club accounted for approximately 12% of our fiscal 2016 net sales. The seasonality of the business varies by country due to different national and religious holidays, festivals and customs, as well as different climatic conditions. Although we do not presently believe that these matters will have a material adverse effect 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.
Through innovation, we are striving to create a customer-centric experience that seamlessly integrates digital and physical shopping. Yes x No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 d of the Exchange Act. Many of our customers shop with us over our e-commerce websites and mobile commerce applications, including walmart. In recent years, fluctuations in currency exchange rates that were unfavorable to us coupled with such translations have had a material adverse effect on our reported results of operations. One of these is a securities lawsuit that was filed on May 7, 2012, in the United States District Court for the Middle District of Tennessee, and subsequently transferred to the Western District of Arkansas, in which the plaintiff alleges various violations of the U. In addition to servicing the Walmart U.
Our eCommerce business continues to scale as we launch new ways to enhance the customer experience. Price leadership is core to who we are. Such information is included in an exhibit to this Annual Report on Form 10-K. During the most recent fiscal year, no single club location accounted for as much as 1% of total Company net sales. These events and their impacts could otherwise disrupt and adversely affect our operations in the areas in which these types of events occur, such as Superstorm Sandy in the U. Suppliers ship the balance of the Walmart International segment's purchases directly to our stores in the various markets in which we operate. In February 2014, a division of the Health Department of the City of Vitória notified Walmart Brazil, a subsidiary of the Company, that a wastewater leak had been observed in the parking lot of a store.
Global sourcing of many of the products we sell is an important factor in our financial performance. In addition, we are a defendant in Dukes v. Stock Incentive Plan of 2010 Restricted Stock Award, Notification of Award and Terms and Conditions of Award is incorporated by reference to Exhibit 10 t to the Annual Report on Form 10-K of the Company for the fiscal year ended January 31, 2014, filed on March 21, 2014. In 1946, his brother, James L. These factors include, but are not limited to: general economic conditions, including changes in the economy of the United States or other countries, economic instability, changes in the monetary policies of the United States, the Board of Governors of the Federal Reserve System, other governments or central banks, the current economic crisis and disruptions in the financial markets, including as a result of sovereign debt crises, governmental budget deficits, unemployment levels, credit availability to consumers and businesses, levels of consumer disposable income, consumer confidence, consumer spending patterns and debt levels, inflation, deflation, the cost of the goods we sell, labor costs, transportation costs, the cost of diesel fuel, gasoline, natural gas and electricity, the cost of healthcare benefits, accident costs, our casualty and other insurance costs, information security costs, the cost of construction materials, availability of acceptable building sites for new stores, clubs and other formats, competitive pressures, accident-related costs, weather patterns, catastrophic events, storm and other damage to our stores and distribution centers, weather-related closing of stores, availability and transport of goods from domestic and foreign suppliers, currency exchange fluctuations and volatility, trade restrictions, changes in tariff and freight rates, adoption of or changes in tax, labor and other laws and regulations that affect our business, costs of compliance with laws and regulations, the resolution of tax matters, the outcome of legal proceedings to which we are a party, interest rate fluctuations, and other capital market, economic and geo-political conditions and events, including civil unrest and terrorist attacks.
We maintain substantial security measures to protect, and to prevent unauthorized access to, such information and have security processes, protocols and standards that are applicable to our third-party service providers to protect information from our systems to which they have access to under their engagements with us. If we are unable to open new supercenters, discount stores, Neighborhood Markets, other small formats or Sam's Clubs or continue to convert discount stores into supercenters, our financial performance, such as net sales and operating income growth, could be materially adversely affected. If we fail to maintain or grow our overall market position through the integration of our physical retail presence and digital retail, our net sales and financial performance could be adversely affected. We may be unable to continue to identify suitable acquisition candidates at acceptable prices and may not be successful in completing the acquisition of any such candidate identified. Portions of such Annual Report to Shareholders are included as an exhibit to this Annual Report on Form 10-K. The Company has been informed by the U.
Supercenters range in size from 80,000 square feet to 260,000 square feet, with an average size of approximately 184,000 square feet. Discount Stores Fiscal Year Opened Closed Conversions 3 Total Square Feet Opened Closed Conversions 3 Total Square Feet Balance Forward 1,985 371,509 1,218 124,695 2007 132 3 148 2,262 422,167 15 2 148 1,083 115,487 2008 82 109 2,453 457,472 7 2 109 979 105,541 2009 88 79 2,620 487,907 2 4 79 898 97,156 2010 49 86 2,755 510,757 2 86 810 87,721 2011 50 102 2,907 534,577 102 708 75,116 Walmart U. In the United States, we lease the remaining buildings in which our stores and clubs operate from either commercial property developers pursuant to capital or operating lease arrangements or from local governmental entities in connection with industrial revenue bond financing arrangements. On April 26, 2010, the Ninth Circuit issued a divided 6-5 opinion affirming certain portions of the district courts ruling and reversing other portions. In 1983, we opened our first Sam's Club, and in 1988, we opened our first supercenter. At January 31, 2011, our Walmart International segment conducted retail business in 14 countries.