Whole Foods 2010 Annual Report Download - page 49

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43
year 2010. The 11 remaining operating stores and 18 non-operating stores have been retained by the Company without
further obligation to divest.
Pursuant to the FTC’s approval of the final consent order, the Company recorded adjustments during the second half of fiscal
year 2009 totaling approximately $4.8 million to measure long-lived assets and certain lease liabilities related to certain of
the operating stores for which sale and transfer of the assets was determined to be probable or more likely than not at the
lower of carrying amount or fair value less costs to sell. Additionally, the Company recorded adjustments totaling $3.0
million during fiscal year 2010 to measure the disposed assets and liabilities at fair value.
(5) Investments
The Company had money market fund investments that are classified as short-term cash equivalent investments and
restricted cash investments totaling approximately $25.8 million and $86.6 million at September 26, 2010, compared to
approximately $439.0 million and $70.4 million at September 27, 2009, respectively.
At September 26, 2010, the Company also had available-for-sale securities, generally consisting of state and local
government obligations totaling approximately $425.9 million, of which approximately $329.7 million were classified as
short-term. No available-for sale securities were held at September 27, 2009.
(6) Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The Company held the following financial assets and liabilities at fair value, based on the hierarchy input levels indicated, on
a recurring basis (in thousands):
September 26, 2010 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total
Assets:
Money market fund investments $ 112,363 $ - $ - $ 112,363
Marketable securities – available-for-sale 425,884 - - 425,884
Total $ 538,247 $ - $ - $ 538,247
Liabilities:
Interest rate swap $ - $ 399 $ - $ 399
September 27, 2009 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total
Assets:
Money market fund investments $ 509,395 $ - $ - $ 509,395
Liabilities:
Interest rate swap $ - $ 20,588 $ - $ 20,588
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Fair value adjustments were included in the following line items on the Consolidated Statements of Operations for the fiscal
years indicated (in thousands):
2010 2009 2008
Direct store expenses $ 1,261 $ 14,827 $ 1,492
Relocation, store closure and lease termination costs 976 9,681 7,703
Total impairment of long-lived assets $ 2,237 $ 24,508 $ 9,195
The Company recorded fair value adjustments totaling approximately $2.2 million, $19.1 million and $6.9 million during
fiscal years 2010, 2009 and 2008, respectively, reducing the carrying value of related property and equipment to zero.
During fiscal year 2009, total long-lived asset impairment charges also included approximately $5.3 million related to
locations included in the FTC settlement, reducing the carrying value to fair value. The FTC settlement is discussed further
in Note 4 to the consolidated financial statements, “FTC Settlement Agreement.”