Whole Foods 2008 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2008 Whole Foods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

67
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.
(12) Comprehensive Income
Our comprehensive income was comprised of net income, unrealized losses on marketable securities, unrealized losses on
cash flow hedge instruments, and foreign currency translation adjustments, net of income taxes. Comprehensive income, net
of related tax effects, was as follows (in thousands):
2008 2007
Net income $ 114,524 $ 182,740
Foreign currency translation adjustment, net (7,714) 8,824
Unrealized loss on investments, net - (77)
Unrealized loss on cash flow hedge instruments, net (7,586) -
Comprehensive income $ 99,224 $ 191,487
At September 28, 2008, accumulated other comprehensive income consisted of foreign currency translation adjustment gains
of approximately $8.0 million and unrealized losses on cash flow hedge instruments of approximately $7.6 million, net of
related income tax effect of approximately $4.9 million.
(13) Earnings per Share
The computation of basic earnings per share is based on the number of weighted average common shares outstanding during
the period. The computation of diluted earnings per share includes the dilutive effect of common stock equivalents consisting
of common shares deemed outstanding from the assumed exercise of stock options and the assumed conversion of zero
coupon convertible subordinated debentures.
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in
thousands, except per share amounts):
2008 2007 2006
Net income (numerator for basic earnings per share) $ 114,524 $ 182,740 $ 203,828
Interest on 5% zero coupon convertible subordinated
debentures, net of income taxes - 98 283
Adjusted net income (numerator for diluted earnings
per share) $ 114,524 $ 182,838 $ 204,111
Weighted average common shares outstanding (denominator
for basic earnings per share) 139,886 140,088 139,328
Potential common shares outstanding:
Assumed conversion of 5% zero coupon convertible
subordinated debentures - 116 363
Assumed exercise of stock options 125 1,632 5,391
Weighted average common shares outstanding and
potential additional common shares outstanding
(denominator for diluted earnings per share) 140,011 141,836 145,082
Basic earnings per share $ 0.82 $ 1.30 $ 1.46
Diluted earnings per share $ 0.82 $ 1.29 $ 1.41
The computation of diluted earnings per share does not include approximately 70,000 shares of common stock related to the
zero coupon convertible subordinated debentures at the end of fiscal year 2008 and options to purchase approximately 13.4
million, 10.6 million and 4.3 million shares of common stock at the end of fiscal years 2008, 2007 and 2006, respectively,
due to their antidilutive effect.