Whole Foods 2008 Annual Report Download - page 42

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The following table shows payments due by period on contractual obligations as of September 28, 2008 (in thousands):
Less than 1 1-3 3-5 More than 5
Total Year Years Years Years
Long term debt obligations $ 897,698 $ - $ - $ 897,698 $ -
Estimated interest on long term debt obligations 126,956 40,591 64,010 22,355 -
Capital lease obligations (including interest) 41,125 2,089 4,179 4,179 30,678
Operating lease obligations1 6,017,763 261,467 627,483 641,428 4,487,385
Total $7,083,542 $ 304,147 $ 695,672 $1,565,660 $4,518,063
1Amounts exclude taxes, insurance and other related expense.
The Company adopted Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty
in Income Taxes, an interpretation of FASB Statement No. 109” (“FIN 48”) on October 1, 2007, the first day of fiscal year
2008. The amount of gross unrecognized tax benefits and related interest and penalties at September 28, 2008 was
approximately $26.8 million. These amounts have been excluded from the contractual obligations table because a reasonably
reliable estimate of the period of cash settlement with the respective taxing authorities cannot be determined due to the high
degree of uncertainty regarding the timing of future cash outflows associated with these liabilities.
We periodically make other commitments and become subject to other contractual obligations that we believe to be routine
in nature and incidental to the operation of the business. Management believes that such routine commitments and
contractual obligations do not have a material impact on our business, financial condition or results of operations.
Following is a summary of dividends declared in fiscal years 2008 and 2007 (in thousands, except per share amounts):
Date of Dividend Date of Date of Total
Declaration per Share Record Payment Amount
Fiscal year 2008:
November 20, 2007 $0.20 January 11, 2008 January 22, 2008 $ 27,901
March 10, 2008 0.20 April 11, 2008 April 22, 2008 28,041
June 11, 2008 0.20 July 11, 2008 July 22, 2008 28,057
Fiscal year 2007:
September 27, 2006 $0.15 October 13, 2006 October 23, 2006 $ 20,971
November 2, 2006 0.18 January 12, 2007 January 22, 2007 25,303
March 5, 2007 0.18 April 13, 2007 April 24, 2007 25,448
June 5, 2007 0.18 July 13, 2007 July 24, 2007 25,019
September 20, 2007 0.18 October 12, 2007 October 23, 2007 25,071
During the fourth quarter of fiscal year 2008, the Company’s Board of Directors suspended the quarterly cash dividend for
the foreseeable future.
On July 31, 2008, the Company’s Board of Directors approved a $100 million increase in the Company’s stock repurchase
program, bringing the total authorization to $400 million through November 8, 2009 and the current remaining authorization
to approximately $200 million. At September 30, 2007, the Company held in treasury approximately 4.5 million shares of
common stock. The average price per share paid for shares held in treasury at September 30, 2007 was $43.98, for a total of
approximately $200 million. During the first quarter of fiscal year 2008, the Company retired all shares held in treasury. The
specific timing and repurchase of future amounts will vary based on market conditions, securities law limitations and other
factors and will be made using the Company's available resources. The repurchase program may be suspended or
discontinued at any time without prior notice.
Our principal historical sources of liquidity have been cash generated by operations, available cash and cash equivalents,
short-term investments and amounts available under our revolving line of credit. There can be no assurance, however, that
the Company will continue to generate cash flows at or above current levels or that our revolving line of credit and other
sources of capital will be available to us in the future. On November 5, 2008, the Company announced an agreement to sell
Series A Preferred Stock for $425 million. We believe this investment, combined with cash generated by operations, will
give us the financial flexibility to manage through the currently difficult economic times while continuing to prudently invest
in our long-term growth. Absent any significant change in market condition, we expect planned expansion and other
anticipated working capital and capital expenditure requirements for the next twelve months will be funded by these sources.