Whole Foods 2013 Annual Report Download - page 65

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56
(16) Commitments and Contingencies
The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods
to resolve these matters in a manner that we believe best serves the interests of our stakeholders. Our primary contingencies are
associated with insurance and self-insurance obligations and litigation matters. Estimation of our insurance and self-insurance
liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current
provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing
and estimating the outcomes of these matters involve substantial uncertainties.
The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are
probable and the amount of loss can be reasonably estimated. Insurance and legal settlement liabilities are included in the “Other
current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial
statements are adequate in light of the probable and estimable liabilities.
(17) Related Party Transactions
The Company provides ongoing support to two independent nonprofit organizations: Whole Planet Foundation and Whole Kids
Foundation (the “Foundations”). Whole Planet Foundation’s mission is to empower the poor through microcredit, with a focus
on developing-world communities that supply the Company’s stores with product. Whole Kids Foundation is a nonprofit
organization dedicated to improving children’s nutrition through partnerships with schools, educators and other organizations.
The Board of Directors of each of the Foundations is principally comprised of members of the Company’s management.
Additionally, the Company provides administrative support and covers all operating costs of the Foundations.