Whole Foods 2007 Annual Report Download - page 39

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Following is a summary of dividends declared in fiscal years 2007 and 2006 (in thousands, except per share amounts):
Date of Dividend Date of Date of Total
Declaration per Share Record Payment Amount
Fiscal year 2007:
September 27, 2006 $0.15 October 13, 2006 October 23, 2006 $ 20,971
November 2, 2006 0.18 January 12, 2007 January 22, 2007 25,303
March 5, 2007 0.18 April 13, 2007 April 24, 2007 25,448
June 5, 2007 0.18 July 13, 2007 July 24, 2007 25,019
September 20, 2007 0.18 October 12, 2007 October 23, 2007 25,060 (1)
Fiscal year 2006:
November 9, 2005 $0.15 January 13, 2006 January 23, 2006 $ 20,918
November 9, 2005 2.00 January 13, 2006 January 23, 2006 277,904
March 6, 2006 0.15 April 14, 2006 April 24, 2006 21,004
June 13, 2006 0.15 July 14, 2006 July 24, 2006 21,186
(1) Dividend accrued at September 30, 2007
On November 20, 2007, the Company’s Board of Directors approved an 11% increase in the Company’s quarterly dividend
to $0.20 per share payable January 22, 2008 to shareholders of record on January 11, 2008. The Company will pay future
dividends at the discretion of the Board of Directors. The continuation of these payments, the amount of such dividends, and
the form in which the dividends are paid (cash or stock) depend on many factors, including the results of operations and the
financial condition of the Company. Subject to these qualifications, the Company currently expects to pay dividends on a
quarterly basis.
On November 8, 2005, the Company’s Board of Directors approved a stock repurchase program of up to $200 million over
four years. During the fourth quarter of fiscal year 2006, the Company repurchased on the open market approximately 2.0
million shares of Company common stock that were held in treasury at September 24, 2006 for a total of approximately $100
million. On November 6, 2006, the Company’s Board of Directors approved a $100 million increase in the Company’s stock
repurchase program, bringing the total remaining authorization to $200 million. During the third quarter of fiscal year 2007,
the Company repurchased approximately 2.5 million additional shares of Company common stock on the open market for a
total of approximately $100 million. The average price per share paid for shares held in treasury at September 30, 2007 was
$43.98, for a total of approximately $200 million. Subsequent to the end of fiscal year 2007, the Company retired all shares
held in treasury at September 30, 2007. The Company’s remaining authorization under the stock repurchase program at
September 30, 2007 is approximately $100 million through November 8, 2009. The specific timing and repurchase of future
amounts will vary based on market conditions, securities law limitations and other factors and will be made using the
Company's available resources. The repurchase program may be suspended or discontinued at any time without prior notice.
Our principal historical sources of liquidity have been cash generated by operations, available unrestricted cash and cash
equivalents, short-term investments and amounts available under our revolving line of credit. There can be no assurance,
however, that we will continue to generate cash flows at or above current levels or that our revolving line of credit or other
sources of capital will be available to us in the future. We continually evaluate the need to establish other sources of working
capital and will seek those considered appropriate based upon the Company’s needs and market conditions. Absent any
significant cash acquisition or 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.
Critical Accounting Policies
The preparation of our financial statements in conformity with generally accepted accounting principles requires us to make
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures of
contingent assets and liabilities. Actual amounts may differ from these estimates. We base our estimates on historical
experience and on various other assumptions and factors that we believe to be reasonable under the circumstances. On an
ongoing basis, we evaluate the continued appropriateness of our accounting policies and resulting estimates to make
adjustments we consider appropriate under the facts and circumstances.
We have chosen accounting policies that we believe are appropriate to report accurately and fairly our operating results and
financial position, and we apply those accounting policies in a consistent manner. Our significant accounting policies are
summarized in Note 2 to the consolidated financial statements. We believe that the following accounting policies are the
most critical in the preparation of our financial statements because they involve the most difficult, subjective or complex
judgments about the effect of matters that are inherently uncertain.