Whole Foods 2008 Annual Report Download - page 76

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70
In fiscal years 2007 and 2006 we recognized approximately $0.3 million and $0.6 million, respectively, of share-based
payments expense related to team member stock purchase plan discounts. Under the TMSPP, we issued approximately
68,000, 83,000 and 51,000 shares in fiscal years 2008, 2007 and 2006, respectively. At September 28, 2008, September 30,
2007 and September 24, 2006 approximately 218,000, 286,000, and 369,000 shares of our common stock, respectively, were
available for future issuance.
(15) Team Member 401(k) Plan
Our Company offers a team member 401(k) plan to all team members with a minimum of 1,000 services hours in one year.
In fiscal years 2008, 2007 and 2006, the Company made a matching contribution to the plan of approximately $3.0 million,
$2.3 million, and $2.3 million, respectively, in cash.
(16) Quarterly Results (unaudited)
The Company’s first quarter consists of 16 weeks, and the second and third quarters each are 12 weeks, and the fourth
quarters is 12 or 13 weeks. Fiscal year 2008 is a 52-week year with twelve weeks in the fourth quarter. Fiscal year 2007 is a
53-week year with thirteen weeks in the fourth quarter. Because the first quarter is longer than the remaining quarters, it
typically represents a larger share of our annual sales from existing stores. Quarter to quarter comparisons of results of
operations have been and may be materially impacted by the timing of new store openings. The Company believes that the
following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the
periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.
During the fourth quarter of fiscal year 2008, “Relocation, store closure and lease termination costs” include charges
recorded totaling approximately $14.7 million to increase store closure reserves for increased estimated net lease obligations
for closed Wild Oats stores and approximately $5.5 million in costs related to 13 lease terminations for stores previously in
development.
The Company’s effective tax rate for the fourth quarter and fiscal year 2008 was higher than its historical rate primarily due
to repatriation of approximately $59.8 million in cash from the Company’s Canadian subsidiary.
Operating results for the fourth quarter of fiscal year 2007 include Wild Oats for the period beginning August 28, 2007
through September 30, 2007.