Whole Foods 2014 Annual Report Download - page 50

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47
(7) Reserves for Closed Properties
The following table provides a summary of activity in reserves for closed properties during the fiscal years indicated (in millions):
2014 2013
Beginning balance $ 36 $ 41
Additions 4 5
Usage (11) (11)
Adjustments 2 1
Ending balance $ 31 $ 36
Additions to store closure reserves primarily relate to the accretion of interest on existing reserves. Additions related to two and
eight new closures during fiscal years 2014 and 2013, respectively, were not material. Usage primarily related to ongoing cash
rental payments totaled approximately $11 million for each of fiscal years 2014 and 2013.
(8) Leases
The Company is committed under certain capital leases for rental of certain buildings, land and equipment, and certain operating
leases for rental of facilities and equipment. These leases expire or become subject to renewal clauses at various dates from 2015
to 2054. The Company had capital lease obligations totaling approximately $62 million and $27 million at September 28, 2014
and September 29, 2013, respectively.
Rental expense charged to operations under operating leases for fiscal years 2014, 2013 and 2012 totaled approximately $407
million, $374 million and $353 million, respectively, which included contingent rentals totaling approximately $13 million, $13
million and $12 million during those same periods. Sublease rental income totaled approximately $9 million, $8 million and $8
million during fiscal years 2014, 2013 and 2012, respectively.
Minimum rental commitments and sublease rental income required by all noncancelable leases are approximately as follows
(in millions):
Capital Operating Sublease
Fiscal year 2015 $ 5 $ 401 $ 8
Fiscal year 2016 5 458 8
Fiscal year 2017 5 481 7
Fiscal year 2018 5 491 6
Fiscal year 2019 5 493 5
Future fiscal years 72 5,948 10
97 $ 8,272 $ 44
Less amounts representing interest 35
Net present value of capital lease obligations $ 62
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.
(9) Income Taxes
Components of income tax expense for the fiscal years indicated were as follows (in millions):
2014 2013 2012
Current federal income tax $ 359 $ 321 $ 234
Current state income tax 82 73 53
Current foreign income tax 2 3 4
Total current tax 443 397 291
Deferred federal income tax (66) (44) 1
Deferred state income tax (10) (10) (6)
Deferred foreign income tax — — —
Total deferred tax (76) (54) (5)
Total income tax expense $ 367 $ 343 $ 286