Whole Foods 2010 Annual Report Download - page 60

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The following tables set forth selected quarterly unaudited Consolidated Statements of Operations information for the fiscal
years ended September 26, 2010 and September 27, 2009 (in thousands except per share amounts):
First Second Third Fourth
Quarter Quarter Quarter Quarter
Fiscal Year 2010
Sales $ 2,639,158 $ 2,106,061 $ 2,163,181 $ 2,097,394
Cost of goods sold and occupancy costs 1,732,942 1,363,632 1,402,847 1,370,972
Gross profit 906,216 742,429 760,334 726,422
Direct store expenses 702,806 551,705 567,191 554,014
General and administrative expenses 75,936 62,540 68,153 65,820
Pre-opening expenses 12,809 11,636 8,692 4,907
Relocation, store closure and lease termination costs 12,412 (2,688) 728 765
Operating income 102,253 119,236 115,570 100,916
Interest expense (10,553) (7,783) (7,421) (7,291)
Investment and other income 1,783 1,910 1,543 1,618
Income before income taxes 93,483 113,363 109,692 95,243
Provision for income taxes 38,328 45,912 43,963 37,745
Net income 55,155 67,451 65,729 57,498
Preferred stock dividends 5,478 - - -
Income available to common shareholders $ 49,677 $ 67,451 $ 65,729 $ 57,498
Basic earnings per share $ 0.32 $ 0.39 $ 0.38 $ 0.33
Diluted earnings per share $ 0.32 $ 0.39 $ 0.38 $ 0.33
First Second Third Fourth
Quarter Quarter Quarter Quarter
Fiscal Year 2009
Sales $ 2,466,503 $ 1,857,550 $ 1,878,338 $ 1,829,229
Cost of goods sold and occupancy costs 1,643,785 1,212,233 1,218,029 1,203,263
Gross profit 822,718 645,317 660,309 625,966
Direct store expenses 653,974 500,392 499,830 491,613
General and administrative expenses 82,600 56,832 52,592 51,725
Pre-opening expenses 14,064 13,789 10,763 10,602
Relocation, store closure and lease termination costs 5,077 4,651 18,209 3,248
Operating income 67,003 69,653 78,915 68,778
Interest expense (13,580) (7,696) (7,688) (7,892)
Investment and other income (loss) 1,841 (639) 1,326 921
Income before income taxes 55,264 61,318 72,553 61,807
Provision for income taxes 22,935 26,060 29,746 25,397
Net income 32,329 35,258 42,807 36,410
Preferred stock dividends 4,533 7,934 7,839 7,744
Income available to common shareholders $ 27,796 $ 27,324 $ 34,968 $ 28,666
Basic earnings per share $ 0.20 $ 0.19 $ 0.25 $ 0.20
Diluted earnings per share $ 0.20 $ 0.19 $ 0.25 $ 0.20
(20) Commitments and Contingencies
The Company uses a combination of insurance and self-insurance plans to provide for the potential liabilities for workers’
compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability and employee
health care benefits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by
considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. While we
believe that our assumptions are appropriate, the estimated accruals for these liabilities could be significantly affected if
future occurrences and claims differ from these assumptions and historical trends.
The Company has entered into retention agreements with certain members of the Company’s management pursuant to which:
(1) if at any time after a change of control or March 1, 2012, the management member’s employment is terminated (a) other
than for “cause” (as defined in the agreement) or (b) by the management member and the management member signs a
release, then, subject to the management member’s continued compliance with the agreement, the management member will
receive a severance payment, immediate vesting of stock options and reimbursement of COBRA premiums; and (2) if at any