Whole Foods 2008 Annual Report Download - page 61

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and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual amounts
could differ from those estimates.
Reclassifications
Where appropriate, we have reclassified prior years' financial statements to conform to current year presentation.
Recent Accounting Pronouncements
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements,” as amended. SFAS No. 157 defines fair
value, establishes a framework for measuring fair value, and requires additional disclosures about fair value measurements.
SFAS No. 157 applies to fair value measurements that are already required or permitted by other accounting standards,
except for measurements of share-based payments and measurements that are similar to, but not intended to be, fair value
and does not change existing guidance as to whether or not an instrument is carried at fair value. SFAS No. 157 is amended
by FSP No. FAS 157-1, “Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting
Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under
Statement 13,” which excludes from the scope of this provision arrangements accounted for under SFAS No. 13,
“Accounting for Leases.” The statement is further amended by FSP No. FAS 157-3, “Determining the Fair Value of a
Financial Asset When the Market for That Asset Is Not Active,” which clarifies the application of SFAS No. 157 in a market
that is not active and provides an example to illustrate key considerations in determining the fair value of a financial asset
when the market for that financial asset is not active. The provisions of SFAS No. 157 are effective for the specified fair
value measures of financial assets and liabilities for financial statements issued for fiscal years beginning after November 15,
2007 and interim periods within those fiscal years for items within scope. SFAS No. 157 is effective for the Company’s first
quarter of fiscal year ending September 27, 2009. The company does not expect that the adoption of SFAS No. 157 will have
an impact on our consolidated financial statements. The provisions of FSP No. FAS 157-2, “Effective Date of FASB
Statement No. 157,” are effective for the specified fair value measures of nonfinancial assets and liabilities for financial
statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years for items
within scope. FSP No. FAS 157-2 is effective for the Company’s first quarter of fiscal year ending September 26, 2010. We
are currently evaluating the impact, if any, that the adoption of SFAS No. 157 will have on our consolidated financial
statements.
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities,
including an amendment of FASB Statement No. 115.” SFAS No. 159 permits entities to choose to measure many financial
instruments and certain other items at fair value. SFAS No. 159 applies to all entities that elect the fair value option.
However, the amendment to SFAS No. 115 “Accounting for Certain Investments in Debt and Equity Securities” applies to
all entities with available-for-sale and trading securities. The provisions of SFAS No. 159 are effective for fiscal years
beginning after November 15, 2007. SFAS No. 159 is effective for the Company’s fiscal year ending September 27, 2009.
We are currently evaluating the impact, if any, that the adoption of SFAS No. 159 will have on our consolidated financial
statements.
In December 2007, the FASB issued SFAS No. 141R, “Business Combinations,” which replaces SFAS No. 141, “Business
Combinations,” and applies to all transactions or other events in which an entity obtains control of one or more businesses,
including those sometimes referred to as “true mergers” or “mergers of equals” and combinations achieved without the
transfer of consideration. SFAS No. 141R establishes principles and requirements for how the acquirer recognizes and
measures identifiable assets acquired, liabilities assumed, any noncontrolling interest and goodwill acquired. The Statement
also provides for disclosures to enable users of the financial statements to evaluate the nature and financial effects of the
business combination. The provisions of SFAS No. 141R are effective for fiscal years beginning after December 15, 2008
and are applied prospectively to business combinations completed on or after that date. SFAS No. 141R is effective for the
Company’s fiscal year ending September 26, 2010. We will evaluate the impact, if any, that the adoption of SFAS No. 141R
could have on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements – an
amendment of ARB No. 51.” SFAS No. 160 establishes accounting and reporting standards for noncontrolling interests
(“minority interests”) in subsidiaries. Additionally, SFAS No. 160 amends certain consolidation procedures contained in
Accounting Reporting Bulletin No. 51 “Consolidated Financial Statements” to make them consistent with the requirements
of SFAS No. 141 “Business Combinations,” as revised. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary
should be accounted for as a component of equity separate from the parent’s equity. The provisions of SFAS No. 160 are
effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2008 and are applied
prospectively, except for presentation and disclosure requirements, which will apply retrospectively. SFAS No. 160 is
effective for the Company’s first quarter of fiscal year ending September 26, 2010. We are currently evaluating the impact, if
any, that the adoption of SFAS No. 160 will have on our consolidated financial statements.