Whole Foods 2014 Annual Report Download - page 56

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53
The following tables set forth selected unaudited quarterly Consolidated Statements of Operations information for the fiscal
years ended September 28, 2014 and September 29, 2013 (in millions, except per share amounts):
First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Fiscal Year 2014
Sales $ 4,239 $ 3,322 $ 3,377 $ 3,256
Cost of goods sold and occupancy costs 2,754 2,131 2,163 2,102
Gross profit 1,485 1,191 1,214 1,154
Direct store expenses 1,077 840 849 820
General and administrative expenses 132 107 102 105
Pre-opening expenses 16 11 18 22
Relocation, store closure and lease termination costs 5 2 2 2
Operating income 255 231 243 205
Investment and other income, net of interest expense 4 2 4 2
Income before income taxes 259 233 247 207
Provision for income taxes 101 91 96 79
Net income $ 158 $ 142 $ 151 $ 128
Basic earnings per share $ 0.42 $ 0.38 $ 0.41 $ 0.35
Diluted earnings per share $ 0.42 $ 0.38 $ 0.41 $ 0.35
Dividends declared per common share $ 0.12 $ 0.12 $ 0.12 $ 0.12
First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Fiscal Year 2013
Sales $ 3,856 $ 3,027 $ 3,058 $ 2,976
Cost of goods sold and occupancy costs 2,508 1,926 1,939 1,915
Gross profit 1,348 1,101 1,119 1,061
Direct store expenses 979 769 781 756
General and administrative expenses 116 91 95 95
Pre-opening expenses 14 10 13 15
Relocation, store closure and lease termination costs 4 3 2 3
Operating income 235 228 228 192
Investment and other income, net of interest expense 3 3 2 3
Income before income taxes 238 231 230 195
Provision for income taxes 92 89 88 74
Net income $ 146 $ 142 $ 142 $ 121
Basic earnings per share $ 0.39 $ 0.38 $ 0.38 $ 0.33
Diluted earnings per share $ 0.39 $ 0.38 $ 0.38 $ 0.32
Dividends declared per common share $ 1.10 $ 0.10 $ 0.10 $ 0.10
Per share amounts are computed independently for each of the quarters presented and the sum of the quarters may not equal
the total year amount.
(15) 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. Additionally, the Company has retention
agreements with certain members of Company management which provide for payments under certain circumstances including
change of control. 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