Whole Foods 2008 Annual Report Download - page 70

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Minimum rental commitments and sublease rental income required by all noncancelable leases are approximately as follows
(in thousands):
Capital Operating Sublease
2009 $ 2,089 $ 261,467 $ 3,817
2010 2,088 307,356 2,997
2011 2,091 320,127 2,500
2012 2,103 321,762 2,374
2013 2,076 319,666 2,255
Future fiscal years 30,678 4,487,385 12,407
41,125 $ 6,017,763 $ 26,350
Less amounts representing interest 22,104
Net present value of capital lease obligations 19,021
Less current installments 380
Long-term capital lease obligations, less current installments $ 18,641
The present values of future minimum obligations for capital leases shown above are calculated based on interest rates
determined at the inception of the lease, or upon acquisition of the original lease.
During fiscal years 2008, 2007 and 2006, we paid contingent rentals totaling approximately $10.8 million, $9.9 million and
$9.6 million, respectively. During fiscal year 2007, we recorded an asset retirement obligation associated with operating
leases totaling approximately $825,000. No asset retirement obligations associated with operating leases were incurred
during fiscal years 2008 and 2006. Sublease rental income totaled approximately $5.4 million, $3.9 million and $1.6 million
during fiscal years 2008, 2007 and 2006, respectively. John Mackey and Glenda Chamberlain, executive officers of the
Company, own approximately 51% and 2%, respectively, of BookPeople, Inc., a retailer of books and periodicals that is
unaffiliated with the Company, which leases retail space in Austin, Texas from the Company. The lease provides for an
aggregate annual minimum rent of approximately $0.5 million, $0.4 million, and $0.4 million which the Company received
in rental income in fiscal years 2008, 2007 and 2006, respectively.
(10) Income Taxes
Components of income tax expense attributable to continuing operations are as follows (in thousands):
2008 2007 2006
Current federal income tax $ 62,835 $ 114,503 $ 120,774
Current state income tax 22,906 34,138 30,632
Current foreign income tax 6,758 389 -
Total current tax 92,499 149,030 151,406
Deferred federal income tax (1,086) (17,014) (13,350)
Deferred state income tax (1,589) (5,091) (2,171)
Deferred foreign income tax 2,171 (5,098) -
Total deferred tax (504) (27,203) (15,521)
Total income tax expense $ 91,995 $ 121,827 $ 135,885
Actual income tax expense differed from the amount computed by applying statutory corporate income tax rates to income
from continuing operations before income taxes as follows (in thousands):
2008 2007 2006
Federal tax based on statutory rates $ 72,282 $ 106,599 $ 118,900
Increase (reduction) in income taxes resulting from:
Change in valuation allowance - (626) (31)
Tax exempt interest (112) (1,010) (1,352)
Share-based compensation (181) 669 (462)
Deductible state income taxes (7,461) (10,167) (9,962)
Tax rate differential relating to foreign operations (4,953) - -
Other, net 2,174 2,024 331
Total federal taxes 61,749 97,489 107,424
State income taxes 21,317 29,047 28,461
Foreign income taxes 8,929 (4,709) -
Total income tax expense $ 91,995 $ 121,827 $ 135,885