Whole Foods 2007 Annual Report Download - page 64

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Deferred taxes for continuing operations have been classified on the consolidated balance sheets as follows (in thousands):
2007 2006
Current assets $ 66,899 $ 48,149
Noncurrent assets 104,877 29,412
Net deferred tax asset $ 171,776 $ 77,561
Approximately $68.0 million of the increase in the net deferred tax asset during fiscal year 2007 related to the recognition of
deferred differences related to the acquisition of Wild Oats Markets as a purchase price adjustment.
As of September 30, 2007, we had international operating loss carryforwards totaling approximately $24.7 million, of which
approximately $6.1 million will begin to expire in fiscal year 2014 and approximately $18.6 million has an indefinite life.
During fiscal year 2007, approximately $4.3 million of the valuation allowance related to international operating loss
carryforwards was released due to improved earnings and the likelihood of using such assets in future periods. In addition,
approximately $626,000 of the valuation allowance related to the utilization of certain operating loss carryforwards was
released. The valuation allowance also increased by approximately $1.1 million related to the establishment of a valuation
allowance on certain acquired state operating loss carryforwards. We have provided a valuation allowance of approximately
$9.5 million for deferred tax assets associated with international operating loss carryforwards, state operating loss
carryforwards, and capital loss carryforwards for which management has determined it is more likely than not that the
deferred tax asset will not be realized. Management believes that it is more likely than not that we will fully realize the
remaining domestic deferred tax assets in the form of future tax deductions based on the nature of these deductible temporary
differences and a history of profitable operations.
At September 30, 2007, a provision was not made for any United States or additional foreign taxes on undistributed earnings
related to certain foreign operations as those earnings are considered permanently reinvested. It is the Company’s intention
to utilize those earnings in the foreign operations for an indefinite period of time, or to repatriate such earnings only when
tax-efficient to do so.
(11) Shareholders’ Equity
Dividends
Following is a summary of dividends declared during fiscal year 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.
Treasury Stock
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