Whole Foods 2009 Annual Report Download - page 38

32
The Company is committed under certain capital leases for rental of equipment, buildings, and land and certain operating
leases for rental of facilities and equipment. These leases expire or become subject to renewal clauses at various dates from
2010 to 2054.
The following table shows payments due by period on contractual obligations as of September 27, 2009 (in thousands):
Less than 1 1-3 3-5 More than 5
Total Year Years Years Years
Long term debt obligations $ 700,000 $ - $ 700,000 $ - $ -
Estimated interest on long term debt obligations 64,491 35,904 28,587 - -
Capital lease obligations (including interest) 39,040 2,066 4,153 4,182 28,639
Operating lease obligations1 5,650,318 265,408 591,489 619,125 4,174,296
Total $ 6,453,849 $ 303,378 $ 1,324,229 $ 623,307 $ 4,202,935
1Amounts exclude taxes, insurance and other related expenses.
At September 27, 2009, the company had gross unrecognized tax benefits totaling approximately $18.1 million including
interest and penalties. The Company believes it is reasonably possible that tax audit resolutions could reduce its
unrecognized tax benefits by $0.5 million in the next 12 months. 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 on common shares in fiscal year 2008 (in thousands, except per share
amounts):
Date of Dividend per Date of Date of Total
Declaration Common Share Record Payment Amount
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
During the fourth quarter of fiscal year 2008, the Company’s Board of Directors suspended the quarterly cash dividend on
common shares 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. During fiscal year 2008, the Company
retired approximately 4.5 million shares held in treasury that had been repurchased for a total of approximately $200 million.
The Company’s remaining authorization under the stock repurchase program at September 27, 2009 was approximately $200
million. On November 8, 2009, the Company’s stock repurchase program expired in accordance with its terms.
The effect of exchange rate changes on cash included in the Consolidated Statements of Cash Flows resulted in decreases in
cash and cash equivalents totaling approximately $1.3 million and $1.6 million for fiscal years 2009 and 2008, respectively,
reflecting the relative weakening of the Canadian and United Kingdom currencies compared to the U.S. dollar during these
periods. For fiscal year 2007, the effect of exchange rate changes on cash resulted in an increase in cash and cash equivalents
totaling approximately $2.5 million.
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. 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. 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.
Off-Balance Sheet Arrangements
Our off-balance sheet arrangements at September 27, 2009 consist of operating leases disclosed in the above contractual
obligations table and the undrawn portion of our revolving credit facility discussed in Note 8 to the Consolidated Financial