Whole Foods 2014 Annual Report Download - page 47

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Foreign currency gains and losses were not material in fiscal year 2014, 2013 or 2012. Intercompany transaction gains and losses
associated with our U.K. operations are excluded from the determination of net income since these transactions are considered
long-term investments in nature. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income
and expense accounts are translated at the average exchange rates during the fiscal year. Resulting translation adjustments are
recorded as a separate component of accumulated other comprehensive income.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements, and revenues and expenses during the period reported. Actual amounts could
differ from those estimates.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09,
“Revenue from Contracts with Customers,” which creates a new topic in the Accounting Standards Codification (“ASC”), topic
606, “Revenue from Contracts with Customers.” The core principle of the new guidance is that an entity will recognize revenue
to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services. Additionally, the guidance requires disclosures related to the
nature, amount, timing, and uncertainty of revenue that is recognized. The amendments are effective for fiscal years, and interim
periods within those years, beginning after December 15, 2016 and may be applied on either a full or modified retrospective
basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 30, 2018. We are currently
evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of
Components of an Entity,” which amends ASC 205, “Presentation of Financial Statements,” and ASC 360, “Property, Plant, and
Equipment.” The amendments raise the threshold for reporting discontinued operations to only those disposals that represent a
strategic shift or have a major impact on an entity’s financial results and operations. The amendments also expand related
disclosure requirements. The amendments are effective for fiscal years, and interim periods within those years, beginning after
December 15, 2014 and should be applied on prospective basis. The provisions are effective for the Company’s first quarter of
fiscal year ending September 25, 2016. We do not expect the adoption of these provisions to have a significant impact on the
Company’s consolidated financial statements.
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which amends ASC 740, “Income Taxes.” The
amendments provide guidance on the financial statement presentation of an unrecognized tax benefit, as either a reduction of a
deferred tax asset or as a liability, when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists.
The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and
may be applied on either a prospective or retrospective basis. The provisions are effective for the Company’s first quarter of
fiscal year ending September 27, 2015. We do not expect the adoption of these provisions to have a significant impact on the
Company’s consolidated financial statements.
In February 2013, the FASB issued ASU No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements
for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task
Force),” which amends ASC 405, “Liabilities.” The amendments provide guidance on the recognition, measurement, and
disclosure of obligations resulting from joint and several liability arrangements, including debt arrangements, other contractual
obligations, and settled litigation and judicial rulings, for which the total amount of the obligation is fixed at the reporting date.
The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and
should be applied retrospectively. The provisions are effective for the Company’s first quarter of fiscal year ending September
27, 2015. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial
statements.