Document_and_Entity
Document and Entity (USD $) | 12 Months Ended | ||
Sep. 29, 2013 | Nov. 15, 2013 | Apr. 14, 2013 | |
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'WHOLE FOODS MARKET INC | ' | ' |
Entity Central Index Key | '0000865436 | ' | ' |
Document Type | '10-K | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Current Fiscal Year End Date | '--09-29 | ' | ' |
Document Period End Date | 29-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Public Float | ' | ' | $16,168,544,914 |
Entity Common Stock, Shares Outstanding | ' | 372,138,322 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 29, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $290 | $89 |
Short-term investments - available-for-sale securities | 733 | 1,131 |
Restricted cash | 111 | 103 |
Accounts receivable | 188 | 197 |
Merchandise inventories | 414 | 374 |
Prepaid expenses and other current assets | 93 | 77 |
Deferred income taxes | 151 | 132 |
Total current assets | 1,980 | 2,103 |
Property and equipment, net of accumulated depreciation and amortization | 2,428 | 2,193 |
Long-term investments - available-for-sale securities | 302 | 221 |
Goodwill | 679 | 663 |
Intangible assets, net of accumulated amortization | 65 | 62 |
Deferred income taxes | 72 | 43 |
Other assets | 12 | 9 |
Total assets | 5,538 | 5,294 |
Current liabilities: | ' | ' |
Current installments of capital lease obligations | 1 | 1 |
Accounts payable | 247 | 247 |
Accrued payroll, bonus and other benefits due team members | 367 | 307 |
Dividends payable | 37 | 26 |
Other current liabilities | 436 | 396 |
Total current liabilities | 1,088 | 977 |
Long-term capital lease obligations, less current installments | 26 | 23 |
Deferred lease liabilities | 500 | 441 |
Other long-term liabilities | 46 | 51 |
Total liabilities | 1,660 | 1,492 |
Commitments and contingencies | ' | ' |
Shareholders’ equity: | ' | ' |
Common stock, no par value, 600.0 shares authorized; 375.7 and 371.6 shares issued; 372.4 and 370.9 shares oustanding at 2013 and 2012, respectively | 2,765 | 2,592 |
Common stock in treasury, at cost, 3.3 and 0.7 shares at 2013 and 2012, respectively | -153 | -28 |
Accumulated other comprehensive income | 1 | 5 |
Retained earnings | 1,265 | 1,233 |
Total shareholders' equity | 3,878 | 3,802 |
Total liabilities and shareholders' equity | $5,538 | $5,294 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 29, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, shares authorized | 600 | 600 |
Common stock, shares issued | 375.7 | 371.6 |
Common stock, shares outstanding | 372.4 | 370.9 |
Common stock, par value | ' | ' |
Treasury stock, shares | 3.3 | 0.7 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Jul. 07, 2013 | Apr. 14, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 08, 2012 | Jan. 20, 2013 | Jan. 15, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $2,976 | $3,058 | $3,027 | $2,911 | $2,727 | $2,670 | $3,856 | $3,391 | $12,917 | $11,699 | $10,108 |
Cost of goods sold and occupancy costs | 1,915 | 1,939 | 1,926 | 1,884 | 1,746 | 1,700 | 2,508 | 2,213 | 8,288 | 7,543 | 6,571 |
Gross profit | 1,061 | 1,119 | 1,101 | 1,027 | 981 | 970 | 1,348 | 1,178 | 4,629 | 4,156 | 3,537 |
Direct store expenses | 756 | 781 | 769 | 741 | 689 | 682 | 979 | 871 | 3,285 | 2,983 | 2,629 |
General and administrative expenses | 95 | 95 | 91 | 94 | 88 | 86 | 116 | 104 | 397 | 372 | 311 |
Pre-opening expenses | 15 | 13 | 10 | 14 | 12 | 11 | 14 | 10 | 52 | 47 | 41 |
Relocation, store closure and lease termination costs | 3 | 2 | 3 | 2 | 4 | 1 | 4 | 3 | 12 | 10 | 8 |
Operating income | 192 | 228 | 228 | 176 | 188 | 190 | 235 | 190 | 883 | 744 | 548 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 |
Investment and other income | 3 | 2 | 3 | 2 | 2 | 2 | 3 | 2 | 11 | 8 | 8 |
Income before income taxes | 195 | 230 | 231 | 178 | 190 | 192 | 238 | 192 | 894 | 752 | 552 |
Provision for income taxes | 74 | 88 | 89 | 65 | 73 | 74 | 92 | 74 | 343 | 286 | 209 |
Net income | $121 | $142 | $142 | $113 | $117 | $118 | $146 | $118 | $551 | $466 | $343 |
Basic earnings per share (in dollars per share) | $0.33 | $0.38 | $0.38 | $0.30 | $0.32 | $0.32 | $0.39 | $0.33 | $1.48 | $1.28 | $0.98 |
Weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 371.2 | 364.8 | 350.5 |
Diluted earnings per share (in dollars per share) | $0.32 | $0.38 | $0.38 | $0.30 | $0.31 | $0.32 | $0.39 | $0.33 | $1.47 | $1.26 | $0.97 |
Weighted average shares outstanding, diluted basis (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 374.5 | 368.9 | 354.6 |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.07 | $0.07 | $0.07 | $1.10 | $0.07 | $1.40 | $0.28 | $0.20 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income Statement (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $551 | $466 | $343 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Foreign currency translation adjustments | -4 | 5 | -1 |
Other comprehensive income (loss), net of tax | -4 | 5 | -1 |
Comprehensive income | $547 | $471 | $342 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common stock | Common stock in treasury | Accumulated other comprehensive income | Retained earnings |
In Millions, unless otherwise specified | |||||
Balances at Sep. 26, 2010 | $2,373 | $1,774 | ' | $1 | $598 |
Balances (in shares) at Sep. 26, 2010 | ' | 344.1 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 343 | ' | ' | ' | 343 |
Other comprehensive income (loss), net of tax | -1 | ' | ' | -1 | ' |
Dividends ($1.40, $0.28 and $0.20 per common share for the fiscal years ended September 29, 2013, September 30, 2012 and September 25, 2011, respectively) | -71 | ' | ' | ' | -71 |
Issuance of common stock pursuant to team member stock plans | 302 | 302 | ' | ' | ' |
Issuance of common stock pursuant to team member stock plans (in shares) | ' | 13.7 | ' | ' | ' |
Tax benefit related to exercise of team member stock options | 18 | 18 | ' | ' | ' |
Share-based payment expense | 27 | 27 | ' | ' | ' |
Balances at Sep. 25, 2011 | 2,991 | 2,121 | ' | ' | 870 |
Balances (in shares) at Sep. 25, 2011 | ' | 357.8 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 466 | ' | ' | ' | 466 |
Other comprehensive income (loss), net of tax | 5 | ' | ' | 5 | ' |
Dividends ($1.40, $0.28 and $0.20 per common share for the fiscal years ended September 29, 2013, September 30, 2012 and September 25, 2011, respectively) | -103 | ' | ' | ' | -103 |
Issuance of common stock pursuant to team member stock plans | 366 | 366 | ' | ' | ' |
Issuance of common stock pursuant to team member stock plans (in shares) | ' | 13.8 | ' | ' | ' |
Purchase of treasury stock | -28 | ' | -28 | ' | ' |
Purchase of treasury stock (in shares) | -0.7 | -0.7 | ' | ' | ' |
Tax benefit related to exercise of team member stock options | 63 | 63 | ' | ' | ' |
Share-based payment expense | 42 | 42 | ' | ' | ' |
Balances at Sep. 30, 2012 | 3,802 | 2,592 | -28 | 5 | 1,233 |
Balances (in shares) at Sep. 30, 2012 | 370.9 | 370.9 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 551 | ' | ' | ' | 551 |
Other comprehensive income (loss), net of tax | -4 | ' | ' | -4 | ' |
Dividends ($1.40, $0.28 and $0.20 per common share for the fiscal years ended September 29, 2013, September 30, 2012 and September 25, 2011, respectively) | -519 | ' | ' | ' | -519 |
Issuance of common stock pursuant to team member stock plans | 81 | 81 | ' | ' | ' |
Issuance of common stock pursuant to team member stock plans (in shares) | ' | 4.1 | ' | ' | ' |
Purchase of treasury stock | -125 | ' | -125 | ' | ' |
Purchase of treasury stock (in shares) | -2.6 | -2.6 | ' | ' | ' |
Tax benefit related to exercise of team member stock options | 36 | 36 | ' | ' | ' |
Share-based payment expense | 56 | 56 | ' | ' | ' |
Balances at Sep. 29, 2013 | $3,878 | $2,765 | ($153) | $1 | $1,265 |
Balances (in shares) at Sep. 29, 2013 | 372.4 | 372.4 | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 29, 2013 | Jul. 07, 2013 | Apr. 14, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 08, 2012 | Jan. 20, 2013 | Jan. 15, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.07 | $0.07 | $0.07 | $1.10 | $0.07 | $1.40 | $0.28 | $0.20 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $551 | $466 | $343 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 339 | 311 | 287 |
Share-based payment expense | 57 | 42 | 27 |
LIFO expense | 2 | ' | 10 |
Deferred income tax (benefit) expense | -51 | -8 | 20 |
Excess tax benefit related to exercise of team member stock options | -37 | -50 | -23 |
Accretion of premium/discount on marketable securities | 31 | 16 | 6 |
Deferred lease liabilities | 51 | 77 | 53 |
Other | 9 | 1 | 3 |
Net change in current assets and liabilities: | ' | ' | ' |
Accounts receivable | 9 | -30 | -35 |
Merchandise inventories | -42 | -37 | -23 |
Prepaid expenses and other current assets | -17 | -2 | -19 |
Accounts payable | ' | 10 | 24 |
Accrued payroll, bonus and other benefits due team members | 60 | 25 | 37 |
Other current liabilities | 51 | 95 | 54 |
Net change in other long-term liabilities | -4 | 4 | -9 |
Net cash provided by operating activities | 1,009 | 920 | 755 |
Cash flows from investing activities | ' | ' | ' |
Development costs of new locations | -339 | -262 | -203 |
Other property and equipment expenditures | -198 | -194 | -162 |
Purchases of available-for-sale securities | -1,252 | -3,009 | -1,229 |
Sales and maturities of available-for-sale securities | 1,534 | 2,138 | 1,156 |
Increase in restricted cash | -8 | -11 | -5 |
Payment for purchase of acquired entities, net of cash acquired | -22 | ' | -2 |
Other investing activities | -4 | -3 | -6 |
Net cash used in investing activities | -289 | -1,341 | -451 |
Cash flows from financing activities | ' | ' | ' |
Common stock dividends paid | -508 | -95 | -53 |
Issuance of common stock | 81 | 370 | 297 |
Purchase of treasury stock | -125 | -28 | ' |
Excess tax benefit related to exercise of team member stock options | 37 | 50 | 23 |
Payments on long-term debt and capital lease obligations | -2 | ' | -490 |
Net cash provided by (used in) financing activities | -517 | 297 | -223 |
Effect of exchange rate changes on cash and cash equivalents | -2 | 1 | -1 |
Net change in cash and cash equivalents | 201 | -123 | 80 |
Cash and cash equivalents at beginning of period | 89 | 212 | 132 |
Cash and cash equivalents at end of period | 290 | 89 | 212 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Interest paid | 2 | 3 | 16 |
Federal and state income taxes paid | $378 | $202 | $192 |
Description_of_Business
Description of Business | 12 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Nature of Operations [Text Block] | ' | ||||||||
Description of Business | |||||||||
Whole Foods Market, Inc. and its consolidated subsidiaries (collectively “Whole Foods Market,” “Company,” or “we”) is the leading retailer of natural and organic foods. The Company’s mission is to promote the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available. Through our growth, we have had a significant and positive impact on the natural and organic foods movement throughout the United States, helping lead the industry to nationwide acceptance over the last 35 years. As of September 29, 2013, we operated 362 stores: 347 stores in 40 United States (“U.S.”) states and the District of Columbia; 8 stores in Canada; and 7 stores in the United Kingdom (“U.K.”). | |||||||||
On May 29, 2013, the Company completed a two-for-one stock split. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures reflect this two-for-one stock split. | |||||||||
The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets. The following is a summary of annual percentage sales and net long-lived assets by geographic area for the fiscal years indicated: | |||||||||
2013 | 2012 | 2011 | |||||||
Sales: | |||||||||
United States | 96.7 | % | 96.8 | % | 96.9 | % | |||
Canada and United Kingdom | 3.3 | 3.2 | 3.1 | ||||||
Total sales | 100 | % | 100 | % | 100 | % | |||
Long-lived assets, net: | |||||||||
United States | 95.7 | % | 95.2 | % | 95.9 | % | |||
Canada and United Kingdom | 4.3 | 4.8 | 4.1 | ||||||
Total long-lived assets, net | 100 | % | 100 | % | 100 | % | |||
The following is a summary of annual percentage sales by product category for the fiscal years indicated: | |||||||||
2013 | 2012 | 2011 | |||||||
Perishables: | |||||||||
Prepared foods and bakery | 19 | % | 18.9 | % | 18.8 | % | |||
Other perishables | 47.2 | 47 | 46.8 | ||||||
Total perishables | 66.2 | 65.9 | 65.6 | ||||||
Non-perishables | 33.8 | 34.1 | 34.4 | ||||||
Total sales | 100 | % | 100 | % | 100 | % |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Sep. 29, 2013 | ||
Accounting Policies [Abstract] | ' | |
Significant Accounting Policies [Text Block] | ' | |
Summary of Significant Accounting Policies | ||
Definition of Fiscal Year | ||
The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal years 2013 and 2011 were 52-week years and fiscal year 2012 was a 53-week year. | ||
Principles of Consolidation | ||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant majority-owned subsidiaries are consolidated on a line-by-line basis, and all significant intercompany accounts and transactions are eliminated upon consolidation. | ||
Cash and Cash Equivalents | ||
We consider all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. | ||
Investments | ||
Available-for-sale investments are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale investments are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. A decline in the fair value of any available-for-sale security below cost that is deemed to be other than temporary for a period greater than two fiscal quarters results in a reduction of the carrying amount to fair value. The impairment is charged to earnings and a new cost basis of the security is established. Cost basis is established and maintained utilizing the specific identification method. | ||
Restricted Cash | ||
Restricted cash primarily relates to cash held as collateral to support a portion of our projected workers’ compensation obligations. Additionally, the Company holds restricted cash as a rent guarantee on certain operating leases through March 2014. | ||
Accounts Receivable | ||
Accounts receivable are shown net of related allowances and consist primarily of credit card receivables, occupancy-related receivables, customer purchases and vendor receivables. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method and totaled approximately $3 million and $4 million in fiscal years 2013 and 2012, respectively. | ||
Inventories | ||
The Company values inventories at the lower of cost or market. Cost was determined using the dollar value retail last-in, first-out (“LIFO”) method for approximately 92.8% and 92.1% of inventories in fiscal years 2013 and 2012, respectively. Under the LIFO method, the cost assigned to items sold is based on the cost of the most recent items purchased. As a result, the costs of the first items purchased remain in inventory and are used to value ending inventory. The excess of estimated current costs over LIFO carrying value, or LIFO reserve, was approximately $32 million and $30 million at September 29, 2013 and September 30, 2012, respectively. Costs for remaining inventories are determined by the first-in, first-out method. Cost before the LIFO adjustment is principally determined using the item cost method, which is calculated by counting each item in inventory, assigning costs to each of these items based on the actual purchase cost (net of vendor allowances) of each item and recording the actual cost of items sold. | ||
Property and Equipment | ||
Property and equipment is stated at cost, net of accumulated depreciation and amortization. The Company provides depreciation of equipment over the estimated useful lives (generally 3 to 15 years) using the straight-line method, and provides amortization of leasehold improvements and real estate assets under capital leases on a straight-line basis over the shorter of the estimated useful lives of the improvements or the expected terms of the related leases. The Company provides depreciation of buildings over the estimated useful lives (generally 20 to 50 years) using the straight-line method. Costs related to a projected site determined to be unsatisfactory and general site selection costs that cannot be identified with a specific store location are charged to operations currently. The Company recognizes a liability for the fair value of a conditional asset retirement obligation when the obligation is incurred. Repair and maintenance costs are expensed as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in earnings. | ||
Leases | ||
The Company leases stores, non-retail facilities and administrative offices under operating leases. Store lease agreements generally include rent holidays, rent escalation clauses and contingent rent provisions for percentage of sales in excess of specified levels. We recognize rent on a straight-line basis over the expected term of the lease, which includes rent holiday periods and scheduled rent increases. The expected lease term begins with the date the Company takes possession of the leased space for construction and other purposes. The expected lease term may also include the exercise of renewal options if the exercise of the option is determined to be reasonably assured. The expected term is also used in the determination of whether a store is a capital or operating lease. Amortization of land and building under capital lease is included with occupancy costs, while the amortization of equipment under capital lease is included with depreciation expense. Additionally, we review leases for which we are involved in construction to determine whether build-to-suit and sale-leaseback criteria are met. For those leases that trigger specific build-to-suit accounting, developer assets are recorded during the construction period with an offsetting liability. Sale-leaseback transactions are recorded as financing lease obligations. We record tenant improvement allowances and rent holidays as deferred rent liabilities, and amortize the deferred rent over the expected lease term to rent. We record rent liabilities for contingent percentage of sales lease provisions when we determine that it is probable that the specified levels as defined by the lease will be reached. | ||
Goodwill and Intangible Assets | ||
Goodwill consists of the excess of cost of acquired enterprises over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is reviewed for impairment annually at the Company’s fiscal year end, or more frequently if impairment indicators arise, on a reporting unit level. We allocate goodwill to one reporting unit for goodwill impairment testing. | ||
Intangible assets include acquired leasehold rights, favorable lease assets, trade names, brand names, patents, liquor licenses, license agreements, and non-competition agreements. The Company amortizes definite-lived intangible assets on a straight-line basis over the period the intangible asset is expected to generate cash flows, generally the life of the related agreement. Currently, the weighted average life is approximately 17 years for contract-based intangible assets, and approximately 2 years for marketing-related and other identifiable intangible assets. Indefinite-lived intangible assets are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate the carrying amount of an intangible asset may not be recoverable. Effective October 1, 2012, the Company adopted Accounting Standards Update (“ASU”) No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” which amends Accounting Standards Codification (“ASC”) 350, “Intangibles – Goodwill and Other.” The adoption of ASU No. 2012-02, which permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount as a basis for determining if performing a quantitative test is necessary, did not have a significant effect on our consolidated financial statements. | ||
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of | ||
The Company evaluates long-lived assets for impairment whenever events or changes in circumstances, such as unplanned negative cash flow or short lease life, indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are determined to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds the fair value of the assets. The fair value, based on hierarchy input Level 3, is determined using management’s best estimate based on a discounted cash flow model based on future store operating results using internal projections or based on a review of the future benefit the Company anticipates receiving from the related assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. When the Company impairs assets related to an operating location, a charge to write down the related assets is included in the “Direct store expenses” or “General and administrative expenses” line item on the Consolidated Statements of Operations. When the Company commits to relocate, close, or dispose of a location, a charge to write down the related assets to their estimated recoverable value is included in the “Relocation, store closure and lease termination costs” line item on the Consolidated Statements of Operations. | ||
Fair Value of Financial Instruments | ||
The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in generally accepted accounting principles. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: | ||
• | Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | |
• | Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |
• | Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | |
The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities generally consisting of state and local municipal obligations and variable rate demand notes which hold high credit ratings. These instruments are valued using a series of multi-dimensional relational models and series of matrices with standard inputs obtained from readily available pricing sources and other observable market data, such as benchmark yields and base spread. Investments are stated at fair value with unrealized gains and losses, net of related tax effect, included as a component of shareholders’ equity until realized. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. | ||
The carrying amounts of accrued payroll, bonuses and other benefits due team members, and other accrued expenses approximate fair value because of their short maturities. Store closure reserves and estimated workers’ compensation claims are recorded at net present value to approximate fair value. | ||
Insurance and Self-Insurance Reserves | ||
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. The Company had insurance liabilities totaling approximately $135 million and $115 million at September 29, 2013 and September 30, 2012, respectively, included in the “Other current liabilities” line item on the Consolidated Balance Sheets. | ||
Reserves for Closed Properties | ||
The Company maintains reserves for retail stores and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using the present value of the remaining noncancelable lease payments and lease termination fees after the closing date, net of estimated subtenant income. The closed property lease liabilities are expected to be paid over the remaining lease terms, which generally range from 4 months to 16 years. The Company estimates subtenant income and future cash flows based on the Company’s experience and knowledge of the area in which the closed property is located, the Company’s previous efforts to dispose of similar assets and existing economic conditions. Reserves for closed properties are included in the “Other current liabilities” and “Other long-term liabilities” line items on the Consolidated Balance Sheets. | ||
The reserves for closed properties include management’s estimates for lease subsidies, lease terminations and future payments on exited real estate. Adjustments to closed property reserves primarily relate to changes in existing economic conditions, subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. | ||
Capital lease properties that are closed are reduced to their estimated fair value. Reduction in the carrying values of property, equipment and leasehold improvements are recognized when expected net future cash flows are less than the assets’ carrying value. The Company estimates net future cash flows based on its experience and knowledge of the area in which the closed property is located and, when necessary, utilizes local real estate brokers. | ||
Revenue Recognition | ||
We recognize revenue for sales of our products at the point of sale. Discounts provided to customers at the point of sale are recognized as a reduction in sales as the products are sold. Sales taxes are not included in revenue. | ||
Cost of Goods Sold and Occupancy Costs | ||
Cost of goods sold includes cost of inventory sold during the period (net of discounts and allowances), distribution and food preparation costs, and shipping and handling costs. The Company receives various rebates from third-party vendors in the form of purchase or sales volume discounts and payments under cooperative advertising agreements. Purchase volume discounts are calculated based on actual purchase volumes. Volume discounts and cooperative advertising discounts in excess of identifiable advertising costs are recognized as a reduction of cost of goods sold when the related merchandise is sold. Occupancy costs include store rental costs, property taxes, utility costs, repair and maintenance costs, and property insurance. Our largest supplier, United Natural Foods, Inc., accounted for approximately 32%, 31% and 31% of our total purchases in fiscal years 2013, 2012 and 2011, respectively. | ||
Direct Store Expenses | ||
Direct store expenses consist of store-level expenses such as salaries and benefits costs, supplies, depreciation, community marketing and other store-specific costs. Advertising and marketing expense for fiscal years 2013, 2012 and 2011 was approximately $56 million, $51 million and $43 million, respectively. Advertising costs are charged to expense as incurred. | ||
General and Administrative Expenses | ||
General and administrative expenses consist of salaries and benefits costs, occupancy and other related costs associated with corporate and regional administrative support services. | ||
Pre-opening Expenses | ||
Pre-opening expenses include rent expense incurred during construction of new facilities and costs related to new location openings, including costs associated with hiring and training personnel, smallwares, supplies and other miscellaneous costs. Rent expense is generally incurred approximately nine months prior to a store’s opening date. Other pre-opening expenses are incurred primarily in the 60 days prior to a new store opening. Pre-opening costs are expensed as incurred. | ||
Relocation, Store Closure and Lease Termination Costs | ||
Relocation costs consist of moving costs, estimated remaining net lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with replaced facilities. Store closure costs consist of estimated remaining lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with closed facilities. Lease termination costs consist of estimated remaining net lease payments for terminated leases and idle properties, and associated asset impairments. | ||
Share-Based Payments | ||
The Company maintains several share-based incentive plans. We grant both options to purchase common stock and restricted common stock under our Whole Foods Market 2009 Stock Incentive Plan. All options outstanding are governed by the original terms and conditions of the grants. Options are granted at an option price equal to the market value of the stock at the grant date and generally vest ratably over a four- or nine-year period beginning one year from grant date and have a five, seven, or ten year term. The grant date is established once the Company’s Board of Directors approves the grant and all key terms have been determined. The exercise prices of our stock option grants are the closing price on the grant date. Stock option grant terms and conditions are communicated to team members within a relatively short period of time. The Company generally approves one primary stock option grant annually, occurring during a trading window. Restricted common stock is granted at the market price of the stock on the day of grant and generally vests over a three-, four- or six-year period. | ||
The Company uses the Black-Scholes multiple option pricing model which requires extensive use of accounting judgment and financial estimates, including estimates of the expected term team members will retain their vested stock options before exercising them, the estimated volatility of the Company’s common stock price over the expected term, and the number of options that will be forfeited prior to the completion of their vesting requirements. The related share-based payment expense is recognized on a straight-line basis over the vesting period. The tax savings resulting from tax deductions in excess of expense reflected in the Company’s financial statements are reflected as a financing cash flow. | ||
All full-time team members with a minimum of 400 hours of service may purchase our common stock through payroll deductions under the Company’s Team Member Stock Purchase Plan (“TMSPP”). The TMSPP provides for a 5% discount on the shares’ purchase date market value which meets the share-based payment “Safe Harbor” provisions, and therefore is non-compensatory. As a result, no compensation expense is recognized for our team member stock purchase plan. | ||
Income Taxes | ||
The Company recognizes deferred income tax assets and liabilities by applying statutory tax rates in effect at the balance sheet date to differences between the book basis and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Deferred tax assets and liabilities are adjusted to reflect changes in tax laws or rates in the period that includes the enactment date. The Company may recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained by the taxing authorities based on technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Significant accounting judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. The Company believes that its tax positions are consistent with applicable tax law, but certain positions may be challenged by taxing authorities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. In addition, we are subject to periodic audits and examinations by the Internal Revenue Service (“IRS”) and other state and local taxing authorities. Although we believe that our estimates are reasonable, actual results could differ from these estimates. | ||
Treasury Stock | ||
Under the Company’s stock repurchase program, the Company can repurchase shares of the Company’s common stock on the open market that are held in treasury at cost. The subsequent retirement of treasury stock is recorded as a reduction in retained earnings at cost. The Company’s common stock has no par value. | ||
Earnings per Share | ||
Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the fiscal period. Diluted earnings per share are based on the weighted average number of common shares outstanding plus, where applicable, the additional common shares that would have been outstanding related to dilutive options and unvested restricted stock. | ||
Comprehensive Income | ||
Comprehensive income consists of: net income; unrealized gains and losses on available-for-sale securities; and foreign currency translation adjustments, net of income taxes. Effective October 1, 2012, the Company concurrently adopted ASU No. 2011-05, “Presentation of Comprehensive Income,” and ASU No. 2013-02, “Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income,” both of which amend ASC 220, “Comprehensive Income.” In adopting ASU No. 2011-05, which requires that all nonowner changes in stockholders’ equity be presented in either a single statement of comprehensive income or two separate but consecutive statements, the Company added Consolidated Statements of Comprehensive Income following our Consolidated Statements of Operations. The amended guidance in ASU No. 2013-02 requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income. The adoption of ASU No. 2013-02 did not have a significant impact on the Company’s consolidated financial statements. | ||
Foreign Currency Translation | ||
The Company’s Canadian and U.K. operations use their local currency as their functional currency. Foreign currency transaction gains and losses related to Canadian intercompany operations are charged to net income in the period incurred. Foreign currency gains and losses were not material in fiscal year 2013, 2012 or 2011. 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. | ||
Reclassifications | ||
Where appropriate, we have reclassified prior years’ financial statements to conform to current year presentation. | ||
Recent Accounting Pronouncements | ||
In July 2013, the Financial Accounting Standards Board (“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. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ||||||||||||||||
The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels indicated (in millions): | ||||||||||||||||
September 29, 2013 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market fund | $ | 73 | $ | — | $ | — | $ | 73 | ||||||||
Commercial paper | — | 104 | — | 104 | ||||||||||||
Municipal bonds | — | 17 | — | 17 | ||||||||||||
Marketable securities - available-for-sale: | ||||||||||||||||
Corporate bonds | — | 5 | — | 5 | ||||||||||||
Municipal bonds | — | 1,010 | — | 1,010 | ||||||||||||
Variable rate demand notes | — | 20 | — | 20 | ||||||||||||
Total | $ | 73 | $ | 1,156 | $ | — | $ | 1,229 | ||||||||
September 30, 2012 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market fund | $ | 16 | $ | — | $ | — | $ | 16 | ||||||||
Municipal bonds | — | 8 | — | 8 | ||||||||||||
Marketable securities - available-for-sale: | ||||||||||||||||
Commercial paper | — | 10 | — | 10 | ||||||||||||
Corporate bonds | — | 11 | — | 11 | ||||||||||||
Municipal bonds | — | 983 | — | 983 | ||||||||||||
Variable rate demand notes | — | 348 | — | 348 | ||||||||||||
Total | $ | 16 | $ | 1,360 | $ | — | $ | 1,376 | ||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||
Assets recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, intangible assets, and other assets. These assets are measured at fair value if determined to be impaired. Fair value adjustments, based on hierarchy input Level 3, were not material during fiscal year 2013, 2012, or 2011. |
Investments
Investments | 12 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | |||||||
Investments | ||||||||
The Company holds investments in marketable securities that are classified as either short- or long-term available-for-sale securities. The Company held the following investments at fair value as of the dates indicated (in millions): | ||||||||
September 29, | September 30, | |||||||
2013 | 2012 | |||||||
Short-term investments - available-for-sale securities: | ||||||||
Commercial paper | $ | — | $ | 10 | ||||
Corporate bonds | — | 5 | ||||||
Municipal bonds | 713 | 768 | ||||||
Variable rate demand notes | 20 | 348 | ||||||
Total short-term investments - available-for-sale securities | $ | 733 | $ | 1,131 | ||||
Long-term investments - available-for-sale securities: | ||||||||
Corporate bonds | $ | 5 | $ | 6 | ||||
Municipal bonds | 297 | 215 | ||||||
Total long-term investments - available-for-sale securities | $ | 302 | $ | 221 | ||||
Gross unrealized holding gains and losses were not material at September 29, 2013 or September 30, 2012. Available-for-sale securities totaling approximately $252 million and $382 million, were in unrealized loss positions at September 29, 2013 and September 30, 2012, respectively. The aggregate value of available-for-sale securities in a continuous unrealized loss position for greater than 12 months at September 29, 2013 was approximately $22 million. There were no investments in a continuous unrealized loss position for greater than 12 months at September 30, 2012. The Company did not recognize any other-than-temporary impairments during the last three fiscal years. | ||||||||
At September 29, 2013, the average effective maturity of the Company’s short- and long-term investments was approximately 5 months and 16 months, respectively, compared to approximately 5 months and 15 months, respectively, at September 30, 2012. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
Property and Equipment | ||||||||
Balances of major classes of property and equipment were as follows (in millions): | ||||||||
September 29, | September 30, | |||||||
2013 | 2012 | |||||||
Land | $ | 77 | $ | 77 | ||||
Buildings and leasehold improvements | 2,427 | 2,220 | ||||||
Capitalized real estate leases | 33 | 25 | ||||||
Fixtures and equipment | 1,706 | 1,513 | ||||||
Construction in progress and equipment not yet in service | 269 | 214 | ||||||
Property and equipment, gross | 4,512 | 4,049 | ||||||
Less accumulated depreciation and amortization | (2,084 | ) | (1,856 | ) | ||||
Property and equipment, net of accumulated depreciation and amortization | $ | 2,428 | $ | 2,193 | ||||
Depreciation and amortization expense related to property and equipment totaled approximately $324 million, $297 million and $274 million for fiscal years 2013, 2012 and 2011, respectively. Property and equipment included accumulated accelerated depreciation and other asset impairments totaling approximately $4 million and $3 million at September 29, 2013 and September 30, 2012, respectively. Development costs of new locations totaled approximately $339 million, $262 million and $203 million in fiscal years 2013, 2012 and 2011, respectively. Construction accruals related to development sites, remodels, and expansions were included in the “Other current liabilities” line item on the Consolidated Balance Sheets and totaled approximately $103 million and $80 million at September 29, 2013 and September 30, 2012, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||
The Company recorded goodwill totaling approximately $16 million primarily related to the acquisition of six retail locations during fiscal year 2013. No additions or adjustments to goodwill were recorded during fiscal year 2012. There were no impairments of goodwill during fiscal years 2013, 2012 or 2011. The Company acquired definite-lived intangible assets totaling approximately $6 million, primarily favorable lease assets related to the acquisition of six retail locations, during fiscal year 2013. Acquisitions of definite-lived intangible assets were not material during fiscal year 2012. The components of intangible assets were as follows (in millions): | ||||||||||||||||
September 29, 2013 | September 30, 2012 | |||||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | |||||||||||||
amount | amortization | amount | amortization | |||||||||||||
Definite-lived contract-based | $ | 102 | $ | (40 | ) | $ | 95 | $ | (35 | ) | ||||||
Definite-lived marketing-related and other | 1 | (1 | ) | 2 | (2 | ) | ||||||||||
Indefinite-lived contract-based | 3 | 2 | ||||||||||||||
Intangible assets | $ | 106 | $ | (41 | ) | $ | 99 | $ | (37 | ) | ||||||
Amortization expense associated with intangible assets totaled approximately $5 million, $6 million and $7 million, during fiscal years 2013, 2012 and 2011, respectively. Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be approximately as follows (in millions): | ||||||||||||||||
Fiscal year 2014 | $ | 5 | ||||||||||||||
Fiscal year 2015 | 5 | |||||||||||||||
Fiscal year 2016 | 4 | |||||||||||||||
Fiscal year 2017 | 4 | |||||||||||||||
Fiscal year 2018 | 4 | |||||||||||||||
Future fiscal years | 40 | |||||||||||||||
Total future estimated amortization associated with definite-lived intangible assets | $ | 62 | ||||||||||||||
Reserves_for_Closed_Properties
Reserves for Closed Properties | 12 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||
Reserves for Closed Properties | ||||||||
The following table provides a summary of store closure reserve activity during the fiscal years indicated (in millions): | ||||||||
2013 | 2012 | |||||||
Beginning balance | $ | 41 | $ | 45 | ||||
Additions | 5 | 4 | ||||||
Usage | (11 | ) | (10 | ) | ||||
Adjustments | 1 | 2 | ||||||
Ending balance | $ | 36 | $ | 41 | ||||
Additions to store closure reserves primarily relate to the accretion of interest on existing reserves. The Company recorded reserves totaling approximately $1 million related to eight and four new closures during fiscal years 2013 and 2012, respectively. Usage primarily related to ongoing cash rental payments totaled approximately $11 million and $10 million during fiscal years 2013 and 2012, respectively. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended |
Sep. 29, 2013 | |
Debt Disclosure [Abstract] | ' |
Long-term Debt [Text Block] | ' |
Long-Term Debt | |
During fiscal year 2011, the Company repaid the $490 million outstanding balance on the term loan agreement due in 2012. The Company had no long-term debt amounts outstanding during fiscal year 2013 or 2012, and its $350 million line of credit expired in 2012. |
Leases
Leases | 12 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Leases of Lessee Disclosure [Text Block] | ' | |||||||||||
Leases | ||||||||||||
The Company is committed under certain capital leases for rental of certain equipment, buildings, and land and certain operating leases for rental of facilities and equipment. These leases expire or become subject to renewal clauses at various dates from 2014 to 2054. The Company had capital lease obligations totaling approximately $27 million and $24 million at September 29, 2013 and September 30, 2012, respectively. | ||||||||||||
Rental expense charged to operations under operating leases for fiscal years 2013, 2012 and 2011 totaled approximately $374 million, $353 million and $322 million, respectively, which included contingent rentals totaling approximately $13 million, $12 million and $10 million during those same periods. Sublease rental income totaled approximately $8 million, $8 million and $7 million during fiscal years 2013, 2012 and 2011, respectively. | ||||||||||||
Minimum rental commitments and sublease rental income required by all noncancelable leases are approximately as follows (in millions): | ||||||||||||
Capital | Operating | Sublease | ||||||||||
Fiscal year 2014 | $ | 3 | $ | 359 | $ | 7 | ||||||
Fiscal year 2015 | 3 | 404 | 6 | |||||||||
Fiscal year 2016 | 3 | 432 | 6 | |||||||||
Fiscal year 2017 | 3 | 437 | 5 | |||||||||
Fiscal year 2018 | 3 | 444 | 4 | |||||||||
Future fiscal years | 33 | 5,366 | 9 | |||||||||
48 | $ | 7,442 | $ | 37 | ||||||||
Less amounts representing interest | 19 | |||||||||||
Net present value of capital lease obligations | $ | 29 | ||||||||||
The present values of future minimum obligations for capital leases shown above are calculated based on interest rates determined at the inception of the lease, or upon acquisition of the original lease. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Tax Disclosure [Text Block] | ' | |||||||||||
Income Taxes | ||||||||||||
Components of income tax expense for the fiscal years indicated were as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current federal income tax | $ | 321 | $ | 234 | $ | 145 | ||||||
Current state income tax | 73 | 53 | 39 | |||||||||
Current foreign income tax | 3 | 4 | 5 | |||||||||
Total current tax | 397 | 291 | 189 | |||||||||
Deferred federal income tax | (44 | ) | 1 | 21 | ||||||||
Deferred state income tax | (10 | ) | (6 | ) | — | |||||||
Deferred foreign income tax | — | — | (1 | ) | ||||||||
Total deferred tax | (54 | ) | (5 | ) | 20 | |||||||
Total income tax expense | $ | 343 | $ | 286 | $ | 209 | ||||||
Actual income tax expense for the fiscal years indicated differed from the amount computed by applying statutory corporate income tax rates to income before income taxes as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal income tax based on statutory rates | $ | 313 | $ | 263 | $ | 193 | ||||||
Increase (reduction) in income taxes resulting from: | ||||||||||||
Tax-exempt interest | (1 | ) | (1 | ) | (1 | ) | ||||||
Share-based payment expense | — | — | (1 | ) | ||||||||
Excess charitable contributions | (7 | ) | (5 | ) | (1 | ) | ||||||
Federal income tax credits | (2 | ) | (2 | ) | (4 | ) | ||||||
Other, net | — | 1 | — | |||||||||
Total federal income taxes | 303 | 256 | 186 | |||||||||
State income taxes, net of federal income tax benefit | 41 | 31 | 24 | |||||||||
Tax impact of foreign operations | (1 | ) | (1 | ) | (1 | ) | ||||||
Total income tax expense | $ | 343 | $ | 286 | $ | 209 | ||||||
Current income taxes receivable totaled approximately $7 million at September 29, 2013 and current income taxes payable totaled approximately $14 million at September 30, 2012. | ||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows (in millions): | ||||||||||||
September 29, | September 30, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Compensation-related costs | $ | 122 | $ | 98 | ||||||||
Insurance-related costs | 48 | 41 | ||||||||||
Inventories | 1 | 1 | ||||||||||
Lease and other termination accruals | 15 | 17 | ||||||||||
Rent differential | 139 | 123 | ||||||||||
Deferred taxes associated with unrecognized tax benefit | — | 1 | ||||||||||
Tax basis of fixed assets in excess of book basis | 7 | 6 | ||||||||||
Net domestic and international operating loss carryforwards | 18 | 18 | ||||||||||
Other | 5 | 5 | ||||||||||
Gross deferred tax assets | 355 | 310 | ||||||||||
Valuation allowance | (26 | ) | (25 | ) | ||||||||
Deferred tax assets | 329 | 285 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Financial basis of fixed assets in excess of tax basis | (102 | ) | (106 | ) | ||||||||
Capitalized costs expensed for tax purposes | (4 | ) | (4 | ) | ||||||||
Deferred tax liabilities | (106 | ) | (110 | ) | ||||||||
Net deferred tax asset | $ | 223 | $ | 175 | ||||||||
Deferred taxes have been classified on the Consolidated Balance Sheets as follows (in millions): | ||||||||||||
September 29, | September 30, | |||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 151 | $ | 132 | ||||||||
Noncurrent assets | 72 | 43 | ||||||||||
Net deferred tax asset | $ | 223 | $ | 175 | ||||||||
At September 29, 2013, the Company had international operating loss carryforwards totaling approximately $89 million, all of which have an indefinite life. The Company provided a valuation allowance totaling approximately $26 million for deferred tax assets associated with international operating loss carryforwards, federal credit carryforwards, and deferred tax assets associated with unrecognized tax benefits, 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. | ||||||||||||
The Company intends to utilize earnings in foreign operations for an indefinite period of time, or to repatriate such earnings only when tax-efficient to do so. If these amounts were distributed to the United States, in the form of dividends or otherwise, the Company would be subject to additional U.S. income taxes. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. | ||||||||||||
At September 29, 2013, the Company had unrecognized tax benefits totaling approximately $3 million (not including accrued interest and penalties). The aggregate changes in the balance of gross unrecognized tax benefits, which exclude interest and penalties, for the two fiscal years ended September 29, 2013, is as follows (in millions): | ||||||||||||
Balance at September 25, 2011 | $ | 6 | ||||||||||
Decrease related to prior year tax positions | (2 | ) | ||||||||||
Balance at September 30, 2012 | 4 | |||||||||||
Decrease related to lapse of statute of limitations | (1 | ) | ||||||||||
Balance at September 29, 2013 | $ | 3 | ||||||||||
The Company’s total gross unrecognized tax benefits are classified in the “Other long-term liabilities” line item on the Consolidated Balance Sheets. If the Company were to prevail on all unrecognized tax benefits recorded at September 29, 2013, the total gross unrecognized tax benefit totaling approximately $3 million would benefit the Company’s effective tax rate if recognized. In addition, associated penalties and interest previously recognized would also benefit the effective tax rate. The Company recognizes accrued interest and penalties related to unrecognized tax benefits within its global operations as a component of income tax expense. Interest and penalties were not material for the last three fiscal years. The Company had accrued approximately $2 million for the payment of interest and penalties at September 29, 2013 and September 30, 2012, respectively. | ||||||||||||
The Company and its domestic subsidiaries file income tax returns with federal, state and local tax authorities within the United States. The Company’s foreign affiliates file income tax returns in Canada and the United Kingdom. The IRS of the United States completed its examination of the Company’s federal tax returns for its fiscal years 2009 and 2010 during the fourth quarter of fiscal year 2012. With limited exceptions, the Company is no longer subject to federal income tax examinations for fiscal years before 2009 and is no longer subject to state and local income tax examinations for fiscal years before 2008. | ||||||||||||
Although a reasonably reliable estimate of the period of cash settlement with respective taxing authorities cannot be determined due to the high degree of uncertainty regarding the timing of future cash outflows associated with the Company’s unrecognized tax benefits, as of September 29, 2013, the Company does not expect tax audit resolutions will reduce its unrecognized tax benefits in the next 12 months. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||
Sep. 29, 2013 | |||||||||||||||
Equity [Abstract] | ' | ||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||||
Shareholders’ Equity | |||||||||||||||
Common Stock | |||||||||||||||
On May 7, 2013, the Company’s Board of Directors declared a two-for-one stock split of the Company’s common stock, which was effected through a stock dividend distributed on May 29, 2013. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures reflect this two-for-one stock split. | |||||||||||||||
Dividends per Common Share | |||||||||||||||
The following table provides a summary of dividends declared per common share during fiscal years 2013 and 2012 (in millions, except per share amounts): | |||||||||||||||
Date of declaration | Dividend per | Date of record | Date of payment | Total amount | |||||||||||
common share | |||||||||||||||
Fiscal year 2013: | |||||||||||||||
November 29, 2012 | $ | 1 | December 10, 2012 | December 21, 2012 | $ | 371 | |||||||||
November 7, 2012 | 0.1 | January 18, 2013 | January 29, 2013 | 37 | |||||||||||
March 15, 2013 | 0.1 | April 12, 2013 | April 23, 2013 | 37 | |||||||||||
June 12, 2013 | 0.1 | July 5, 2013 | July 16, 2013 | 37 | |||||||||||
September 10, 2013 (1) | 0.1 | September 27, 2013 | October 8, 2013 | 37 | |||||||||||
Fiscal year 2012: | |||||||||||||||
November 2, 2011 | $ | 0.07 | January 13, 2012 | January 24, 2012 | $ | 25 | |||||||||
March 9, 2012 | 0.07 | April 5, 2012 | April 17, 2012 | 26 | |||||||||||
May 30, 2012 | 0.07 | June 29, 2012 | July 10, 2012 | 26 | |||||||||||
September 6, 2012 | 0.07 | September 28, 2012 | October 9, 2012 | 26 | |||||||||||
(1) Dividend accrued at September 29, 2013 | |||||||||||||||
Treasury Stock | |||||||||||||||
The following table outlines the share repurchase programs authorized by the Company’s Board of Directors, and the related repurchase activity as of September 29, 2013 (in millions): | |||||||||||||||
Authorization date | Expiration date | Amount authorized | Cost of repurchases | Authorization available | |||||||||||
November 2, 2011 | November 1, 2013 | $ | 200 | $ | 153 | $ | 47 | ||||||||
November 15, 2012 | December 31, 2014 | 300 | — | 300 | |||||||||||
$ | 500 | $ | 153 | $ | 347 | ||||||||||
Share repurchase activity for the fiscal years indicated was as follows (in millions, except per share amounts): | |||||||||||||||
2013 | 2012 | ||||||||||||||
Number of common shares acquired | 2.6 | 0.7 | |||||||||||||
Average price per common share acquired | $ | 48.7 | $ | 41.34 | |||||||||||
Total cost of common shares acquired | $ | 125 | $ | 28 | |||||||||||
Subsequent to fiscal year-end, the Company’s Board of Directors authorized a new share repurchase program whereby the Company may make up to $500 million in stock purchases of outstanding shares of common stock of the Company through December 31, 2015. This repurchase program is in addition to, and does not supersede or modify, the Company’s previously authorized program to repurchase an amount of outstanding common shares of the Company having an aggregate value of $300 million through December 31, 2014 bringing the Company’s total share repurchase authority to $800 million. | |||||||||||||||
Under the repurchase programs, purchases can be made from time to time using a variety of methods, which may include open market purchases or purchases through a Rule 10b5-1 trading plan, all in accordance with Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic conditions and market conditions, and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s discretion. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||
Earnings per Share | ||||||||||||
The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period. The computation of diluted earnings per share includes the dilutive effect of common stock equivalents consisting of incremental common shares deemed outstanding from the assumed exercise of stock options and the dilutive effect of restricted stock awards. | ||||||||||||
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the fiscal years indicated follows (in millions, except per share amounts): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income (numerator for basic and diluted earnings per share) | $ | 551 | $ | 466 | $ | 343 | ||||||
Weighted average common shares outstanding | 371.2 | 364.8 | 350.5 | |||||||||
(denominator for basic earnings per share) | ||||||||||||
Potential common shares outstanding: | ||||||||||||
Incremental shares from assumed exercise of stock options | 3.3 | 4.1 | 4.1 | |||||||||
Weighted average common shares outstanding and potential additional | 374.5 | 368.9 | 354.6 | |||||||||
common shares outstanding (denominator for diluted earnings per share) | ||||||||||||
Basic earnings per share | $ | 1.48 | $ | 1.28 | $ | 0.98 | ||||||
Diluted earnings per share | $ | 1.47 | $ | 1.26 | $ | 0.97 | ||||||
The computation of diluted earnings per share for the fiscal years 2013, 2012 and 2011 does not include options to purchase approximately 7.1 million shares, 0.8 million shares and 11.6 million shares of common stock, respectively, due to their antidilutive effect. The dilutive effect of restricted stock awards was not material. |
ShareBased_Payments
Share-Based Payments | 12 Months Ended | ||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||
Share-Based Payments | |||||||||||||||||||||||
Total share-based payment expense before income taxes recognized during fiscal years 2013, 2012 and 2011 was approximately $57 million, $42 million and $27 million, respectively. Share-based payment expense was included in the following line items on the Consolidated Statements of Operations for the fiscal years indicated (in millions): | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Cost of goods sold and occupancy costs | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||
Direct store expenses | 32 | 22 | 14 | ||||||||||||||||||||
General and administrative expenses | 23 | 18 | 12 | ||||||||||||||||||||
Share-based payment expense before income taxes | 57 | 42 | 27 | ||||||||||||||||||||
Income tax benefit | (22 | ) | (16 | ) | (10 | ) | |||||||||||||||||
Net share-based payment expense | $ | 35 | $ | 26 | $ | 17 | |||||||||||||||||
Stock Options | |||||||||||||||||||||||
At September 29, 2013, September 30, 2012 and September 25, 2011 approximately 42.3 million shares, 16.8 million shares and 23.4 million shares of the Company’s common stock, respectively, were available for future stock incentive grants. The following table summarizes option activity (in millions, except per share amounts and contractual lives in years): | |||||||||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||||||||
of options | average | average | intrinsic | ||||||||||||||||||||
outstanding | exercise price | remaining | value | ||||||||||||||||||||
contractual life | |||||||||||||||||||||||
Outstanding options at September 26, 2010 | 37.9 | $ | 23 | ||||||||||||||||||||
Options granted | 6.4 | 31.25 | |||||||||||||||||||||
Options exercised | (13.6 | ) | 21.97 | ||||||||||||||||||||
Options expired | (2.8 | ) | 33.31 | ||||||||||||||||||||
Options forfeited | (0.6 | ) | 18.97 | ||||||||||||||||||||
Outstanding options at September 25, 2011 | 27.3 | $ | 24.5 | ||||||||||||||||||||
Options granted | 7.2 | 44.23 | |||||||||||||||||||||
Options exercised | (13.7 | ) | 26.44 | ||||||||||||||||||||
Options expired | (0.1 | ) | 25.1 | ||||||||||||||||||||
Options forfeited | (0.7 | ) | 28.32 | ||||||||||||||||||||
Outstanding options at September 30, 2012 | 20 | $ | 30.17 | ||||||||||||||||||||
Options granted | 4.3 | 51.33 | |||||||||||||||||||||
Options exercised | (4.1 | ) | 20.52 | ||||||||||||||||||||
Options expired | (0.1 | ) | 18.86 | ||||||||||||||||||||
Options forfeited | (0.9 | ) | 37.2 | ||||||||||||||||||||
Outstanding options at September 29, 2013 | 19.2 | $ | 36.9 | 5.2 | $ | 413 | |||||||||||||||||
Vested/expected to vest at September 29, 2013 | 18 | $ | 36.37 | 5.15 | $ | 395 | |||||||||||||||||
Exercisable options at September 29, 2013 | 5.6 | $ | 26.6 | 4.22 | $ | 179 | |||||||||||||||||
The weighted average fair value per option granted during fiscal years 2013, 2012 and 2011 was $12.36, $13.68 and $10.92, respectively. The aggregate intrinsic value of stock options at exercise, represented in the table above, was approximately $125 million, $201 million, and $106 million during fiscal years 2013, 2012 and 2011, respectively. The Company realized a tax benefit from stock options exercised during fiscal years 2013, 2012 and 2011 totaling approximately $123 million, $198 million and $105 million, respectively. The total fair value of shares vested during fiscal years 2013, 2012 and 2011 was approximately $246 million, $186 million and $129 million, respectively, including the value of vested options exercised during those same periods. As of the end of fiscal years 2013 and 2012, there was approximately $130 million and $135 million of unrecognized share-based payment expense, respectively, related to nonvested stock options, net of estimated forfeitures, related to approximately 12.4 million shares and 14.2 million shares, respectively. The Company anticipates this expense to be recognized over a weighted average period of approximately 3.1 years. | |||||||||||||||||||||||
A summary of options outstanding and exercisable at September 29, 2013 follows (share amounts in millions): | |||||||||||||||||||||||
Range of Exercise Prices | Options Outstanding | Options Exercisable | |||||||||||||||||||||
From | To | Number | Weighted | Weighted average | Number | Weighted | |||||||||||||||||
of options | average | remaining | of options | average | |||||||||||||||||||
outstanding | exercise price | life (in years) | exercisable | exercise price | |||||||||||||||||||
$ | 5.56 | $ | 18.49 | 1.3 | $ | 9.6 | 2.64 | 1.2 | $ | 9.5 | |||||||||||||
20.42 | 28.5 | 3 | 20.43 | 4.21 | 1.5 | 20.42 | |||||||||||||||||
31.25 | 31.25 | 4.3 | 31.25 | 4.6 | 1.6 | 31.25 | |||||||||||||||||
40.81 | 46.28 | 6.6 | 44.29 | 5.63 | 1.3 | 44.22 | |||||||||||||||||
51.25 | 51.86 | 4 | 51.86 | 6.67 | — | — | |||||||||||||||||
Total | 19.2 | $ | 36.9 | 5.2 | 5.6 | $ | 26.6 | ||||||||||||||||
Share-based payment expense related to vesting stock options recognized during fiscal years 2013, 2012 and 2011 totaled approximately $56 million, $42 million and $27 million, respectively. | |||||||||||||||||||||||
The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected dividend yield | 0.88 | % | 0.8 | % | 0.698 | % | |||||||||||||||||
Risk-free interest rate | 0.77 | % | 0.58 | % | 1.76 | % | |||||||||||||||||
Expected volatility | 31.25 | % | 40.89 | % | 43.84 | % | |||||||||||||||||
Expected life, in years | 3.96 | 4.14 | 4.18 | ||||||||||||||||||||
Risk-free interest rate is based on the U.S. Treasury yield curve on the date of the grant for the time period equal to the expected term of the grant. Expected volatility is calculated using a ratio of implied volatility based on the Newton-Raphson method of bisection, and four or six year historical volatilities based on the expected life of each tranche of options. The Company determined the use of implied volatility versus historical volatility represents a more accurate calculation of option fair value. Expected life is calculated in two tranches based on weighted average percentage of unexpired options and exercise-after-vesting information over the last five or seven years. Unvested options are included in the term calculation using the “mid-point scenario” which assumes that unvested options will be exercised halfway between vest and expiration date. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and experience. In addition to the above valuation assumptions, the Company estimates an annual forfeiture rate for unvested options and adjusts fair value expense accordingly. The Company monitors actual forfeiture activity and adjusts the rate from time to time as necessary. | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||
During fiscal year 2013, the Company awarded approximately 83,000 shares of restricted common stock pursuant to the Whole Foods Market 2009 Stock Incentive Plan. Fair value of the restricted share issuance on grant date totaled approximately $4 million. Restricted shares vest over a three-, four- or six-year term. Share-based payment expense related to restricted shares, included in the “General and administrative expenses” line item on the Consolidated Statements of Operations, was not material during fiscal year 2013. At September 29, 2013, there was approximately $3 million of unrecognized share-based payment expense related to unvested restricted stock. The number of shares, grant date fair value, and share-based payment expense related to the issuance of restricted common stock were not material during fiscal year 2012 or 2011. | |||||||||||||||||||||||
Team Member Stock Purchase Plan | |||||||||||||||||||||||
Under the Team Member Stock Purchase Plan, the Company issued approximately 80,000, 120,000 and 120,000 shares of common stock in fiscal years 2013, 2012 and 2011, respectively. At September 29, 2013, September 30, 2012 and September 25, 2011, approximately 540,000, 620,000 and 740,000 shares of our common stock, respectively, were available for future issuance. |
Team_Member_401k_Plan
Team Member 401(k) Plan | 12 Months Ended |
Sep. 29, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
Team Member 401(k) Plan | |
The Company offers a team member 401(k) plan to all team members with a minimum of 1,000 service hours in one year. In fiscal years 2013, 2012 and 2011, the Company made cash contributions to the plan of approximately $6 million, $5 million and $5 million, respectively. |
Quarterly_Results_unaudited
Quarterly Results (unaudited) | 12 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Information [Text Block] | ' | |||||||||||||||
Quarterly Results (unaudited) | ||||||||||||||||
The Company’s first quarter consists of 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal year 2013 was a 52-week year with 12 weeks in the fourth quarter and fiscal year 2012 was a 53-week year with 13 weeks in the fourth quarter. Because the first quarter is longer than the remaining quarters, it typically represents a larger share of our annual sales from existing stores. Quarter-to-quarter comparisons of results of operations have been and may be materially impacted by the timing of new store openings. The Company believes that the following information reflects all adjustments, consisting of normal recurring accruals, necessary for a fair presentation. The operating results for any quarter are not necessarily indicative of results for any future period. | ||||||||||||||||
The following tables set forth selected unaudited quarterly Consolidated Statements of Operations information for the fiscal years ended September 29, 2013 and September 30, 2012 (in millions, except per share amounts): | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Fiscal Year 2013 | ||||||||||||||||
Sales | $ | 3,856 | $ | 3,027 | $ | 3,058 | $ | 2,976 | ||||||||
Cost of goods sold and occupancy costs | 2,508 | 1,926 | 1,939 | 1,915 | ||||||||||||
Gross profit | 1,348 | 1,101 | 1,119 | 1,061 | ||||||||||||
Direct store expenses | 979 | 769 | 781 | 756 | ||||||||||||
General and administrative expenses | 116 | 91 | 95 | 95 | ||||||||||||
Pre-opening expenses | 14 | 10 | 13 | 15 | ||||||||||||
Relocation, store closure and lease termination costs | 4 | 3 | 2 | 3 | ||||||||||||
Operating income | 235 | 228 | 228 | 192 | ||||||||||||
Interest expense | — | — | — | — | ||||||||||||
Investment and other income | 3 | 3 | 2 | 3 | ||||||||||||
Income before income taxes | 238 | 231 | 230 | 195 | ||||||||||||
Provision for income taxes | 92 | 89 | 88 | 74 | ||||||||||||
Net income | $ | 146 | $ | 142 | $ | 142 | $ | 121 | ||||||||
Basic earnings per share | $ | 0.39 | $ | 0.38 | $ | 0.38 | $ | 0.33 | ||||||||
Diluted earnings per share | $ | 0.39 | $ | 0.38 | $ | 0.38 | $ | 0.32 | ||||||||
Dividends declared per common share | $ | 1.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | ||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Fiscal Year 2012 | ||||||||||||||||
Sales | $ | 3,391 | $ | 2,670 | $ | 2,727 | $ | 2,911 | ||||||||
Cost of goods sold and occupancy costs | 2,213 | 1,700 | 1,746 | 1,884 | ||||||||||||
Gross profit | 1,178 | 970 | 981 | 1,027 | ||||||||||||
Direct store expenses | 871 | 682 | 689 | 741 | ||||||||||||
General and administrative expenses | 104 | 86 | 88 | 94 | ||||||||||||
Pre-opening expenses | 10 | 11 | 12 | 14 | ||||||||||||
Relocation, store closure and lease termination costs | 3 | 1 | 4 | 2 | ||||||||||||
Operating income | 190 | 190 | 188 | 176 | ||||||||||||
Interest expense | — | — | — | — | ||||||||||||
Investment and other income | 2 | 2 | 2 | 2 | ||||||||||||
Income before income taxes | 192 | 192 | 190 | 178 | ||||||||||||
Provision for income taxes | 74 | 74 | 73 | 65 | ||||||||||||
Net income | $ | 118 | $ | 118 | $ | 117 | $ | 113 | ||||||||
Basic earnings per share | $ | 0.33 | $ | 0.32 | $ | 0.32 | $ | 0.3 | ||||||||
Diluted earnings per share | $ | 0.33 | $ | 0.32 | $ | 0.31 | $ | 0.3 | ||||||||
Dividends declared per common share | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 29, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Commitments and Contingencies | |
The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters in a manner that we believe best serves the interests of our stakeholders. Our primary contingencies are associated with insurance and self-insurance obligations and litigation matters. Estimation of our insurance and self-insurance liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing and estimating the outcomes of these matters involve substantial uncertainties. | |
The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. Insurance and legal settlement liabilities are included in the “Other current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 29, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Related Party Transactions | |
The Company provides ongoing support to two independent nonprofit organizations: Whole Planet Foundation and Whole Kids Foundation (the “Foundations”). Whole Planet Foundation’s mission is to empower the poor through microcredit, with a focus on developing-world communities that supply the Company’s stores with product. Whole Kids Foundation is a nonprofit organization dedicated to improving children’s nutrition through partnerships with schools, educators and other organizations. The Board of Directors of each of the Foundations is principally comprised of members of the Company’s management. Additionally, the Company provides administrative support and covers all operating costs of the Foundations. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Sep. 29, 2013 | ||
Accounting Policies [Abstract] | ' | |
Definition of Fiscal Year | ' | |
Definition of Fiscal Year | ||
The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal years 2013 and 2011 were 52-week years and fiscal year 2012 was a 53-week year. | ||
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant majority-owned subsidiaries are consolidated on a line-by-line basis, and all significant intercompany accounts and transactions are eliminated upon consolidation. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
We consider all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. | ||
Investments | ' | |
Investments | ||
Available-for-sale investments are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale investments are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. A decline in the fair value of any available-for-sale security below cost that is deemed to be other than temporary for a period greater than two fiscal quarters results in a reduction of the carrying amount to fair value. The impairment is charged to earnings and a new cost basis of the security is established. Cost basis is established and maintained utilizing the specific identification method. | ||
Restricted Cash | ' | |
Restricted Cash | ||
Restricted cash primarily relates to cash held as collateral to support a portion of our projected workers’ compensation obligations. Additionally, the Company holds restricted cash as a rent guarantee on certain operating leases through March 2014. | ||
Accounts Receivable | ' | |
Accounts Receivable | ||
Accounts receivable are shown net of related allowances and consist primarily of credit card receivables, occupancy-related receivables, customer purchases and vendor receivables. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method and totaled approximately $3 million and $4 million in fiscal years 2013 and 2012, respectively. | ||
Inventories | ' | |
Inventories | ||
The Company values inventories at the lower of cost or market. Cost was determined using the dollar value retail last-in, first-out (“LIFO”) method for approximately 92.8% and 92.1% of inventories in fiscal years 2013 and 2012, respectively. Under the LIFO method, the cost assigned to items sold is based on the cost of the most recent items purchased. As a result, the costs of the first items purchased remain in inventory and are used to value ending inventory. The excess of estimated current costs over LIFO carrying value, or LIFO reserve, was approximately $32 million and $30 million at September 29, 2013 and September 30, 2012, respectively. Costs for remaining inventories are determined by the first-in, first-out method. Cost before the LIFO adjustment is principally determined using the item cost method, which is calculated by counting each item in inventory, assigning costs to each of these items based on the actual purchase cost (net of vendor allowances) of each item and recording the actual cost of items sold. | ||
Property and Equipment | ' | |
Property and Equipment | ||
Property and equipment is stated at cost, net of accumulated depreciation and amortization. The Company provides depreciation of equipment over the estimated useful lives (generally 3 to 15 years) using the straight-line method, and provides amortization of leasehold improvements and real estate assets under capital leases on a straight-line basis over the shorter of the estimated useful lives of the improvements or the expected terms of the related leases. The Company provides depreciation of buildings over the estimated useful lives (generally 20 to 50 years) using the straight-line method. Costs related to a projected site determined to be unsatisfactory and general site selection costs that cannot be identified with a specific store location are charged to operations currently. The Company recognizes a liability for the fair value of a conditional asset retirement obligation when the obligation is incurred. Repair and maintenance costs are expensed as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in earnings. | ||
Leases | ' | |
Leases | ||
The Company leases stores, non-retail facilities and administrative offices under operating leases. Store lease agreements generally include rent holidays, rent escalation clauses and contingent rent provisions for percentage of sales in excess of specified levels. We recognize rent on a straight-line basis over the expected term of the lease, which includes rent holiday periods and scheduled rent increases. The expected lease term begins with the date the Company takes possession of the leased space for construction and other purposes. The expected lease term may also include the exercise of renewal options if the exercise of the option is determined to be reasonably assured. The expected term is also used in the determination of whether a store is a capital or operating lease. Amortization of land and building under capital lease is included with occupancy costs, while the amortization of equipment under capital lease is included with depreciation expense. Additionally, we review leases for which we are involved in construction to determine whether build-to-suit and sale-leaseback criteria are met. For those leases that trigger specific build-to-suit accounting, developer assets are recorded during the construction period with an offsetting liability. Sale-leaseback transactions are recorded as financing lease obligations. We record tenant improvement allowances and rent holidays as deferred rent liabilities, and amortize the deferred rent over the expected lease term to rent. We record rent liabilities for contingent percentage of sales lease provisions when we determine that it is probable that the specified levels as defined by the lease will be reached. | ||
Goodwill and Intangible Assets | ' | |
Goodwill and Intangible Assets | ||
Goodwill consists of the excess of cost of acquired enterprises over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is reviewed for impairment annually at the Company’s fiscal year end, or more frequently if impairment indicators arise, on a reporting unit level. We allocate goodwill to one reporting unit for goodwill impairment testing. | ||
Intangible assets include acquired leasehold rights, favorable lease assets, trade names, brand names, patents, liquor licenses, license agreements, and non-competition agreements. The Company amortizes definite-lived intangible assets on a straight-line basis over the period the intangible asset is expected to generate cash flows, generally the life of the related agreement. Currently, the weighted average life is approximately 17 years for contract-based intangible assets, and approximately 2 years for marketing-related and other identifiable intangible assets. Indefinite-lived intangible assets are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate the carrying amount of an intangible asset may not be recoverable. Effective October 1, 2012, the Company adopted Accounting Standards Update (“ASU”) No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” which amends Accounting Standards Codification (“ASC”) 350, “Intangibles – Goodwill and Other.” The adoption of ASU No. 2012-02, which permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount as a basis for determining if performing a quantitative test is necessary, did not have a significant effect on our consolidated financial statements. | ||
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of | ' | |
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of | ||
The Company evaluates long-lived assets for impairment whenever events or changes in circumstances, such as unplanned negative cash flow or short lease life, indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are determined to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds the fair value of the assets. The fair value, based on hierarchy input Level 3, is determined using management’s best estimate based on a discounted cash flow model based on future store operating results using internal projections or based on a review of the future benefit the Company anticipates receiving from the related assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. When the Company impairs assets related to an operating location, a charge to write down the related assets is included in the “Direct store expenses” or “General and administrative expenses” line item on the Consolidated Statements of Operations. When the Company commits to relocate, close, or dispose of a location, a charge to write down the related assets to their estimated recoverable value is included in the “Relocation, store closure and lease termination costs” line item on the Consolidated Statements of Operations. | ||
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments | ||
The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in generally accepted accounting principles. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: | ||
• | Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | |
• | Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |
• | Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | |
The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities generally consisting of state and local municipal obligations and variable rate demand notes which hold high credit ratings. These instruments are valued using a series of multi-dimensional relational models and series of matrices with standard inputs obtained from readily available pricing sources and other observable market data, such as benchmark yields and base spread. Investments are stated at fair value with unrealized gains and losses, net of related tax effect, included as a component of shareholders’ equity until realized. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. | ||
The carrying amounts of accrued payroll, bonuses and other benefits due team members, and other accrued expenses approximate fair value because of their short maturities. Store closure reserves and estimated workers’ compensation claims are recorded at net present value to approximate fair value. | ||
Insurance and Self-Insurance Reserves | ' | |
Insurance and Self-Insurance Reserves | ||
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. The Company had insurance liabilities totaling approximately $135 million and $115 million at September 29, 2013 and September 30, 2012, respectively, included in the “Other current liabilities” line item on the Consolidated Balance Sheets. | ||
Reserves for Closed Properties | ' | |
Reserves for Closed Properties | ||
The Company maintains reserves for retail stores and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using the present value of the remaining noncancelable lease payments and lease termination fees after the closing date, net of estimated subtenant income. The closed property lease liabilities are expected to be paid over the remaining lease terms, which generally range from 4 months to 16 years. The Company estimates subtenant income and future cash flows based on the Company’s experience and knowledge of the area in which the closed property is located, the Company’s previous efforts to dispose of similar assets and existing economic conditions. Reserves for closed properties are included in the “Other current liabilities” and “Other long-term liabilities” line items on the Consolidated Balance Sheets. | ||
The reserves for closed properties include management’s estimates for lease subsidies, lease terminations and future payments on exited real estate. Adjustments to closed property reserves primarily relate to changes in existing economic conditions, subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. | ||
Capital lease properties that are closed are reduced to their estimated fair value. Reduction in the carrying values of property, equipment and leasehold improvements are recognized when expected net future cash flows are less than the assets’ carrying value. The Company estimates net future cash flows based on its experience and knowledge of the area in which the closed property is located and, when necessary, utilizes local real estate brokers. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
We recognize revenue for sales of our products at the point of sale. Discounts provided to customers at the point of sale are recognized as a reduction in sales as the products are sold. Sales taxes are not included in revenue. | ||
Cost of Goods Sold and Occupancy Costs | ' | |
Cost of Goods Sold and Occupancy Costs | ||
Cost of goods sold includes cost of inventory sold during the period (net of discounts and allowances), distribution and food preparation costs, and shipping and handling costs. The Company receives various rebates from third-party vendors in the form of purchase or sales volume discounts and payments under cooperative advertising agreements. Purchase volume discounts are calculated based on actual purchase volumes. Volume discounts and cooperative advertising discounts in excess of identifiable advertising costs are recognized as a reduction of cost of goods sold when the related merchandise is sold. Occupancy costs include store rental costs, property taxes, utility costs, repair and maintenance costs, and property insurance. Our largest supplier, United Natural Foods, Inc., accounted for approximately 32%, 31% and 31% of our total purchases in fiscal years 2013, 2012 and 2011, respectively. | ||
Direct Store Expenses | ' | |
Direct Store Expenses | ||
Direct store expenses consist of store-level expenses such as salaries and benefits costs, supplies, depreciation, community marketing and other store-specific costs. Advertising and marketing expense for fiscal years 2013, 2012 and 2011 was approximately $56 million, $51 million and $43 million, respectively. Advertising costs are charged to expense as incurred. | ||
General and Administrative Expenses | ' | |
General and Administrative Expenses | ||
General and administrative expenses consist of salaries and benefits costs, occupancy and other related costs associated with corporate and regional administrative support services. | ||
Pre-opening Expenses | ' | |
Pre-opening Expenses | ||
Pre-opening expenses include rent expense incurred during construction of new facilities and costs related to new location openings, including costs associated with hiring and training personnel, smallwares, supplies and other miscellaneous costs. Rent expense is generally incurred approximately nine months prior to a store’s opening date. Other pre-opening expenses are incurred primarily in the 60 days prior to a new store opening. Pre-opening costs are expensed as incurred. | ||
Relocation, Store Closure and Lease Termination Costs | ' | |
Relocation, Store Closure and Lease Termination Costs | ||
Relocation costs consist of moving costs, estimated remaining net lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with replaced facilities. Store closure costs consist of estimated remaining lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with closed facilities. Lease termination costs consist of estimated remaining net lease payments for terminated leases and idle properties, and associated asset impairments. | ||
Share-Based Payments | ' | |
Share-Based Payments | ||
The Company maintains several share-based incentive plans. We grant both options to purchase common stock and restricted common stock under our Whole Foods Market 2009 Stock Incentive Plan. All options outstanding are governed by the original terms and conditions of the grants. Options are granted at an option price equal to the market value of the stock at the grant date and generally vest ratably over a four- or nine-year period beginning one year from grant date and have a five, seven, or ten year term. The grant date is established once the Company’s Board of Directors approves the grant and all key terms have been determined. The exercise prices of our stock option grants are the closing price on the grant date. Stock option grant terms and conditions are communicated to team members within a relatively short period of time. The Company generally approves one primary stock option grant annually, occurring during a trading window. Restricted common stock is granted at the market price of the stock on the day of grant and generally vests over a three-, four- or six-year period. | ||
The Company uses the Black-Scholes multiple option pricing model which requires extensive use of accounting judgment and financial estimates, including estimates of the expected term team members will retain their vested stock options before exercising them, the estimated volatility of the Company’s common stock price over the expected term, and the number of options that will be forfeited prior to the completion of their vesting requirements. The related share-based payment expense is recognized on a straight-line basis over the vesting period. The tax savings resulting from tax deductions in excess of expense reflected in the Company’s financial statements are reflected as a financing cash flow. | ||
All full-time team members with a minimum of 400 hours of service may purchase our common stock through payroll deductions under the Company’s Team Member Stock Purchase Plan (“TMSPP”). The TMSPP provides for a 5% discount on the shares’ purchase date market value which meets the share-based payment “Safe Harbor” provisions, and therefore is non-compensatory. As a result, no compensation expense is recognized for our team member stock purchase plan. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company recognizes deferred income tax assets and liabilities by applying statutory tax rates in effect at the balance sheet date to differences between the book basis and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Deferred tax assets and liabilities are adjusted to reflect changes in tax laws or rates in the period that includes the enactment date. The Company may recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained by the taxing authorities based on technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Significant accounting judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. The Company believes that its tax positions are consistent with applicable tax law, but certain positions may be challenged by taxing authorities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. In addition, we are subject to periodic audits and examinations by the Internal Revenue Service (“IRS”) and other state and local taxing authorities. Although we believe that our estimates are reasonable, actual results could differ from these estimates. | ||
Treasury Stock | ' | |
Treasury Stock | ||
Under the Company’s stock repurchase program, the Company can repurchase shares of the Company’s common stock on the open market that are held in treasury at cost. The subsequent retirement of treasury stock is recorded as a reduction in retained earnings at cost. The Company’s common stock has no par value. | ||
Earnings per Share | ' | |
Earnings per Share | ||
Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the fiscal period. Diluted earnings per share are based on the weighted average number of common shares outstanding plus, where applicable, the additional common shares that would have been outstanding related to dilutive options and unvested restricted stock. | ||
Comprehensive Income | ' | |
Comprehensive Income | ||
Comprehensive income consists of: net income; unrealized gains and losses on available-for-sale securities; and foreign currency translation adjustments, net of income taxes. Effective October 1, 2012, the Company concurrently adopted ASU No. 2011-05, “Presentation of Comprehensive Income,” and ASU No. 2013-02, “Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income,” both of which amend ASC 220, “Comprehensive Income.” In adopting ASU No. 2011-05, which requires that all nonowner changes in stockholders’ equity be presented in either a single statement of comprehensive income or two separate but consecutive statements, the Company added Consolidated Statements of Comprehensive Income following our Consolidated Statements of Operations. The amended guidance in ASU No. 2013-02 requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income. The adoption of ASU No. 2013-02 did not have a significant impact on the Company’s consolidated financial statements. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
The Company’s Canadian and U.K. operations use their local currency as their functional currency. Foreign currency transaction gains and losses related to Canadian intercompany operations are charged to net income in the period incurred. Foreign currency gains and losses were not material in fiscal year 2013, 2012 or 2011. 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 | ' | |
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. | ||
Reclassifications | ' | |
Reclassifications | ||
Where appropriate, we have reclassified prior years’ financial statements to conform to current year presentation. | ||
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
In July 2013, the Financial Accounting Standards Board (“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. |
Description_of_Business_Tables
Description of Business (Tables) | 12 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||
The following is a summary of annual percentage sales and net long-lived assets by geographic area for the fiscal years indicated: | |||||||||
2013 | 2012 | 2011 | |||||||
Sales: | |||||||||
United States | 96.7 | % | 96.8 | % | 96.9 | % | |||
Canada and United Kingdom | 3.3 | 3.2 | 3.1 | ||||||
Total sales | 100 | % | 100 | % | 100 | % | |||
Long-lived assets, net: | |||||||||
United States | 95.7 | % | 95.2 | % | 95.9 | % | |||
Canada and United Kingdom | 4.3 | 4.8 | 4.1 | ||||||
Total long-lived assets, net | 100 | % | 100 | % | 100 | % | |||
Revenue from External Customers by Products and Services [Table Text Block] | ' | ||||||||
The following is a summary of annual percentage sales by product category for the fiscal years indicated: | |||||||||
2013 | 2012 | 2011 | |||||||
Perishables: | |||||||||
Prepared foods and bakery | 19 | % | 18.9 | % | 18.8 | % | |||
Other perishables | 47.2 | 47 | 46.8 | ||||||
Total perishables | 66.2 | 65.9 | 65.6 | ||||||
Non-perishables | 33.8 | 34.1 | 34.4 | ||||||
Total sales | 100 | % | 100 | % | 100 | % |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | |||||||||||||||
The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels indicated (in millions): | ||||||||||||||||
September 29, 2013 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market fund | $ | 73 | $ | — | $ | — | $ | 73 | ||||||||
Commercial paper | — | 104 | — | 104 | ||||||||||||
Municipal bonds | — | 17 | — | 17 | ||||||||||||
Marketable securities - available-for-sale: | ||||||||||||||||
Corporate bonds | — | 5 | — | 5 | ||||||||||||
Municipal bonds | — | 1,010 | — | 1,010 | ||||||||||||
Variable rate demand notes | — | 20 | — | 20 | ||||||||||||
Total | $ | 73 | $ | 1,156 | $ | — | $ | 1,229 | ||||||||
September 30, 2012 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market fund | $ | 16 | $ | — | $ | — | $ | 16 | ||||||||
Municipal bonds | — | 8 | — | 8 | ||||||||||||
Marketable securities - available-for-sale: | ||||||||||||||||
Commercial paper | — | 10 | — | 10 | ||||||||||||
Corporate bonds | — | 11 | — | 11 | ||||||||||||
Municipal bonds | — | 983 | — | 983 | ||||||||||||
Variable rate demand notes | — | 348 | — | 348 | ||||||||||||
Total | $ | 16 | $ | 1,360 | $ | — | $ | 1,376 | ||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
Marketable Securities [Table Text Block] | ' | |||||||
The Company held the following investments at fair value as of the dates indicated (in millions): | ||||||||
September 29, | September 30, | |||||||
2013 | 2012 | |||||||
Short-term investments - available-for-sale securities: | ||||||||
Commercial paper | $ | — | $ | 10 | ||||
Corporate bonds | — | 5 | ||||||
Municipal bonds | 713 | 768 | ||||||
Variable rate demand notes | 20 | 348 | ||||||
Total short-term investments - available-for-sale securities | $ | 733 | $ | 1,131 | ||||
Long-term investments - available-for-sale securities: | ||||||||
Corporate bonds | $ | 5 | $ | 6 | ||||
Municipal bonds | 297 | 215 | ||||||
Total long-term investments - available-for-sale securities | $ | 302 | $ | 221 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Balances of major classes of property and equipment were as follows (in millions): | ||||||||
September 29, | September 30, | |||||||
2013 | 2012 | |||||||
Land | $ | 77 | $ | 77 | ||||
Buildings and leasehold improvements | 2,427 | 2,220 | ||||||
Capitalized real estate leases | 33 | 25 | ||||||
Fixtures and equipment | 1,706 | 1,513 | ||||||
Construction in progress and equipment not yet in service | 269 | 214 | ||||||
Property and equipment, gross | 4,512 | 4,049 | ||||||
Less accumulated depreciation and amortization | (2,084 | ) | (1,856 | ) | ||||
Property and equipment, net of accumulated depreciation and amortization | $ | 2,428 | $ | 2,193 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Finite-Lived And Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | ' | |||||||||||||||
The components of intangible assets were as follows (in millions): | ||||||||||||||||
September 29, 2013 | September 30, 2012 | |||||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | |||||||||||||
amount | amortization | amount | amortization | |||||||||||||
Definite-lived contract-based | $ | 102 | $ | (40 | ) | $ | 95 | $ | (35 | ) | ||||||
Definite-lived marketing-related and other | 1 | (1 | ) | 2 | (2 | ) | ||||||||||
Indefinite-lived contract-based | 3 | 2 | ||||||||||||||
Intangible assets | $ | 106 | $ | (41 | ) | $ | 99 | $ | (37 | ) | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||||||||
Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be approximately as follows (in millions): | ||||||||||||||||
Fiscal year 2014 | $ | 5 | ||||||||||||||
Fiscal year 2015 | 5 | |||||||||||||||
Fiscal year 2016 | 4 | |||||||||||||||
Fiscal year 2017 | 4 | |||||||||||||||
Fiscal year 2018 | 4 | |||||||||||||||
Future fiscal years | 40 | |||||||||||||||
Total future estimated amortization associated with definite-lived intangible assets | $ | 62 | ||||||||||||||
Reserves_for_Closed_Properties1
Reserves for Closed Properties (Tables) | 12 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||
The following table provides a summary of store closure reserve activity during the fiscal years indicated (in millions): | ||||||||
2013 | 2012 | |||||||
Beginning balance | $ | 41 | $ | 45 | ||||
Additions | 5 | 4 | ||||||
Usage | (11 | ) | (10 | ) | ||||
Adjustments | 1 | 2 | ||||||
Ending balance | $ | 36 | $ | 41 | ||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Schedule of Future Minimum Lease Payments for Capital and Operating Leases [Table Text Block] | ' | |||||||||||
Minimum rental commitments and sublease rental income required by all noncancelable leases are approximately as follows (in millions): | ||||||||||||
Capital | Operating | Sublease | ||||||||||
Fiscal year 2014 | $ | 3 | $ | 359 | $ | 7 | ||||||
Fiscal year 2015 | 3 | 404 | 6 | |||||||||
Fiscal year 2016 | 3 | 432 | 6 | |||||||||
Fiscal year 2017 | 3 | 437 | 5 | |||||||||
Fiscal year 2018 | 3 | 444 | 4 | |||||||||
Future fiscal years | 33 | 5,366 | 9 | |||||||||
48 | $ | 7,442 | $ | 37 | ||||||||
Less amounts representing interest | 19 | |||||||||||
Net present value of capital lease obligations | $ | 29 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||||||
Components of income tax expense for the fiscal years indicated were as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current federal income tax | $ | 321 | $ | 234 | $ | 145 | ||||||
Current state income tax | 73 | 53 | 39 | |||||||||
Current foreign income tax | 3 | 4 | 5 | |||||||||
Total current tax | 397 | 291 | 189 | |||||||||
Deferred federal income tax | (44 | ) | 1 | 21 | ||||||||
Deferred state income tax | (10 | ) | (6 | ) | — | |||||||
Deferred foreign income tax | — | — | (1 | ) | ||||||||
Total deferred tax | (54 | ) | (5 | ) | 20 | |||||||
Total income tax expense | $ | 343 | $ | 286 | $ | 209 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||||
Actual income tax expense for the fiscal years indicated differed from the amount computed by applying statutory corporate income tax rates to income before income taxes as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal income tax based on statutory rates | $ | 313 | $ | 263 | $ | 193 | ||||||
Increase (reduction) in income taxes resulting from: | ||||||||||||
Tax-exempt interest | (1 | ) | (1 | ) | (1 | ) | ||||||
Share-based payment expense | — | — | (1 | ) | ||||||||
Excess charitable contributions | (7 | ) | (5 | ) | (1 | ) | ||||||
Federal income tax credits | (2 | ) | (2 | ) | (4 | ) | ||||||
Other, net | — | 1 | — | |||||||||
Total federal income taxes | 303 | 256 | 186 | |||||||||
State income taxes, net of federal income tax benefit | 41 | 31 | 24 | |||||||||
Tax impact of foreign operations | (1 | ) | (1 | ) | (1 | ) | ||||||
Total income tax expense | $ | 343 | $ | 286 | $ | 209 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows (in millions): | ||||||||||||
September 29, | September 30, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Compensation-related costs | $ | 122 | $ | 98 | ||||||||
Insurance-related costs | 48 | 41 | ||||||||||
Inventories | 1 | 1 | ||||||||||
Lease and other termination accruals | 15 | 17 | ||||||||||
Rent differential | 139 | 123 | ||||||||||
Deferred taxes associated with unrecognized tax benefit | — | 1 | ||||||||||
Tax basis of fixed assets in excess of book basis | 7 | 6 | ||||||||||
Net domestic and international operating loss carryforwards | 18 | 18 | ||||||||||
Other | 5 | 5 | ||||||||||
Gross deferred tax assets | 355 | 310 | ||||||||||
Valuation allowance | (26 | ) | (25 | ) | ||||||||
Deferred tax assets | 329 | 285 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Financial basis of fixed assets in excess of tax basis | (102 | ) | (106 | ) | ||||||||
Capitalized costs expensed for tax purposes | (4 | ) | (4 | ) | ||||||||
Deferred tax liabilities | (106 | ) | (110 | ) | ||||||||
Net deferred tax asset | $ | 223 | $ | 175 | ||||||||
Summary of Net Deferred Tax Assets Classification [Table Text Block] | ' | |||||||||||
Deferred taxes have been classified on the Consolidated Balance Sheets as follows (in millions): | ||||||||||||
September 29, | September 30, | |||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 151 | $ | 132 | ||||||||
Noncurrent assets | 72 | 43 | ||||||||||
Net deferred tax asset | $ | 223 | $ | 175 | ||||||||
Summary of Income Tax Contingencies [Table Text Block] | ' | |||||||||||
The aggregate changes in the balance of gross unrecognized tax benefits, which exclude interest and penalties, for the two fiscal years ended September 29, 2013, is as follows (in millions): | ||||||||||||
Balance at September 25, 2011 | $ | 6 | ||||||||||
Decrease related to prior year tax positions | (2 | ) | ||||||||||
Balance at September 30, 2012 | 4 | |||||||||||
Decrease related to lapse of statute of limitations | (1 | ) | ||||||||||
Balance at September 29, 2013 | $ | 3 | ||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||
Sep. 29, 2013 | |||||||||||||||
Equity [Abstract] | ' | ||||||||||||||
Dividends Declared [Table Text Block] | ' | ||||||||||||||
The following table provides a summary of dividends declared per common share during fiscal years 2013 and 2012 (in millions, except per share amounts): | |||||||||||||||
Date of declaration | Dividend per | Date of record | Date of payment | Total amount | |||||||||||
common share | |||||||||||||||
Fiscal year 2013: | |||||||||||||||
November 29, 2012 | $ | 1 | December 10, 2012 | December 21, 2012 | $ | 371 | |||||||||
November 7, 2012 | 0.1 | January 18, 2013 | January 29, 2013 | 37 | |||||||||||
March 15, 2013 | 0.1 | April 12, 2013 | April 23, 2013 | 37 | |||||||||||
June 12, 2013 | 0.1 | July 5, 2013 | July 16, 2013 | 37 | |||||||||||
September 10, 2013 (1) | 0.1 | September 27, 2013 | October 8, 2013 | 37 | |||||||||||
Fiscal year 2012: | |||||||||||||||
November 2, 2011 | $ | 0.07 | January 13, 2012 | January 24, 2012 | $ | 25 | |||||||||
March 9, 2012 | 0.07 | April 5, 2012 | April 17, 2012 | 26 | |||||||||||
May 30, 2012 | 0.07 | June 29, 2012 | July 10, 2012 | 26 | |||||||||||
September 6, 2012 | 0.07 | September 28, 2012 | October 9, 2012 | 26 | |||||||||||
(1) Dividend accrued at September 29, 2013 | |||||||||||||||
Schedule of Share Repurchase Programs [Table Text Block] | ' | ||||||||||||||
The following table outlines the share repurchase programs authorized by the Company’s Board of Directors, and the related repurchase activity as of September 29, 2013 (in millions): | |||||||||||||||
Authorization date | Expiration date | Amount authorized | Cost of repurchases | Authorization available | |||||||||||
November 2, 2011 | November 1, 2013 | $ | 200 | $ | 153 | $ | 47 | ||||||||
November 15, 2012 | December 31, 2014 | 300 | — | 300 | |||||||||||
$ | 500 | $ | 153 | $ | 347 | ||||||||||
Schedule of Shares Repurchased [Table Text Block] | ' | ||||||||||||||
Share repurchase activity for the fiscal years indicated was as follows (in millions, except per share amounts): | |||||||||||||||
2013 | 2012 | ||||||||||||||
Number of common shares acquired | 2.6 | 0.7 | |||||||||||||
Average price per common share acquired | $ | 48.7 | $ | 41.34 | |||||||||||
Total cost of common shares acquired | $ | 125 | $ | 28 | |||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | ' | |||||||||||
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the fiscal years indicated follows (in millions, except per share amounts): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income (numerator for basic and diluted earnings per share) | $ | 551 | $ | 466 | $ | 343 | ||||||
Weighted average common shares outstanding | 371.2 | 364.8 | 350.5 | |||||||||
(denominator for basic earnings per share) | ||||||||||||
Potential common shares outstanding: | ||||||||||||
Incremental shares from assumed exercise of stock options | 3.3 | 4.1 | 4.1 | |||||||||
Weighted average common shares outstanding and potential additional | 374.5 | 368.9 | 354.6 | |||||||||
common shares outstanding (denominator for diluted earnings per share) | ||||||||||||
Basic earnings per share | $ | 1.48 | $ | 1.28 | $ | 0.98 | ||||||
Diluted earnings per share | $ | 1.47 | $ | 1.26 | $ | 0.97 | ||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | ||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||||||||
Share-based payment expense was included in the following line items on the Consolidated Statements of Operations for the fiscal years indicated (in millions): | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Cost of goods sold and occupancy costs | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||
Direct store expenses | 32 | 22 | 14 | ||||||||||||||||||||
General and administrative expenses | 23 | 18 | 12 | ||||||||||||||||||||
Share-based payment expense before income taxes | 57 | 42 | 27 | ||||||||||||||||||||
Income tax benefit | (22 | ) | (16 | ) | (10 | ) | |||||||||||||||||
Net share-based payment expense | $ | 35 | $ | 26 | $ | 17 | |||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||
The following table summarizes option activity (in millions, except per share amounts and contractual lives in years): | |||||||||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||||||||
of options | average | average | intrinsic | ||||||||||||||||||||
outstanding | exercise price | remaining | value | ||||||||||||||||||||
contractual life | |||||||||||||||||||||||
Outstanding options at September 26, 2010 | 37.9 | $ | 23 | ||||||||||||||||||||
Options granted | 6.4 | 31.25 | |||||||||||||||||||||
Options exercised | (13.6 | ) | 21.97 | ||||||||||||||||||||
Options expired | (2.8 | ) | 33.31 | ||||||||||||||||||||
Options forfeited | (0.6 | ) | 18.97 | ||||||||||||||||||||
Outstanding options at September 25, 2011 | 27.3 | $ | 24.5 | ||||||||||||||||||||
Options granted | 7.2 | 44.23 | |||||||||||||||||||||
Options exercised | (13.7 | ) | 26.44 | ||||||||||||||||||||
Options expired | (0.1 | ) | 25.1 | ||||||||||||||||||||
Options forfeited | (0.7 | ) | 28.32 | ||||||||||||||||||||
Outstanding options at September 30, 2012 | 20 | $ | 30.17 | ||||||||||||||||||||
Options granted | 4.3 | 51.33 | |||||||||||||||||||||
Options exercised | (4.1 | ) | 20.52 | ||||||||||||||||||||
Options expired | (0.1 | ) | 18.86 | ||||||||||||||||||||
Options forfeited | (0.9 | ) | 37.2 | ||||||||||||||||||||
Outstanding options at September 29, 2013 | 19.2 | $ | 36.9 | 5.2 | $ | 413 | |||||||||||||||||
Vested/expected to vest at September 29, 2013 | 18 | $ | 36.37 | 5.15 | $ | 395 | |||||||||||||||||
Exercisable options at September 29, 2013 | 5.6 | $ | 26.6 | 4.22 | $ | 179 | |||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||||||
A summary of options outstanding and exercisable at September 29, 2013 follows (share amounts in millions): | |||||||||||||||||||||||
Range of Exercise Prices | Options Outstanding | Options Exercisable | |||||||||||||||||||||
From | To | Number | Weighted | Weighted average | Number | Weighted | |||||||||||||||||
of options | average | remaining | of options | average | |||||||||||||||||||
outstanding | exercise price | life (in years) | exercisable | exercise price | |||||||||||||||||||
$ | 5.56 | $ | 18.49 | 1.3 | $ | 9.6 | 2.64 | 1.2 | $ | 9.5 | |||||||||||||
20.42 | 28.5 | 3 | 20.43 | 4.21 | 1.5 | 20.42 | |||||||||||||||||
31.25 | 31.25 | 4.3 | 31.25 | 4.6 | 1.6 | 31.25 | |||||||||||||||||
40.81 | 46.28 | 6.6 | 44.29 | 5.63 | 1.3 | 44.22 | |||||||||||||||||
51.25 | 51.86 | 4 | 51.86 | 6.67 | — | — | |||||||||||||||||
Total | 19.2 | $ | 36.9 | 5.2 | 5.6 | $ | 26.6 | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||||
The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected dividend yield | 0.88 | % | 0.8 | % | 0.698 | % | |||||||||||||||||
Risk-free interest rate | 0.77 | % | 0.58 | % | 1.76 | % | |||||||||||||||||
Expected volatility | 31.25 | % | 40.89 | % | 43.84 | % | |||||||||||||||||
Expected life, in years | 3.96 | 4.14 | 4.18 | ||||||||||||||||||||
Quarterly_Results_unaudited_Ta
Quarterly Results (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | |||||||||||||||
The following tables set forth selected unaudited quarterly Consolidated Statements of Operations information for the fiscal years ended September 29, 2013 and September 30, 2012 (in millions, except per share amounts): | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Fiscal Year 2013 | ||||||||||||||||
Sales | $ | 3,856 | $ | 3,027 | $ | 3,058 | $ | 2,976 | ||||||||
Cost of goods sold and occupancy costs | 2,508 | 1,926 | 1,939 | 1,915 | ||||||||||||
Gross profit | 1,348 | 1,101 | 1,119 | 1,061 | ||||||||||||
Direct store expenses | 979 | 769 | 781 | 756 | ||||||||||||
General and administrative expenses | 116 | 91 | 95 | 95 | ||||||||||||
Pre-opening expenses | 14 | 10 | 13 | 15 | ||||||||||||
Relocation, store closure and lease termination costs | 4 | 3 | 2 | 3 | ||||||||||||
Operating income | 235 | 228 | 228 | 192 | ||||||||||||
Interest expense | — | — | — | — | ||||||||||||
Investment and other income | 3 | 3 | 2 | 3 | ||||||||||||
Income before income taxes | 238 | 231 | 230 | 195 | ||||||||||||
Provision for income taxes | 92 | 89 | 88 | 74 | ||||||||||||
Net income | $ | 146 | $ | 142 | $ | 142 | $ | 121 | ||||||||
Basic earnings per share | $ | 0.39 | $ | 0.38 | $ | 0.38 | $ | 0.33 | ||||||||
Diluted earnings per share | $ | 0.39 | $ | 0.38 | $ | 0.38 | $ | 0.32 | ||||||||
Dividends declared per common share | $ | 1.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | ||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Fiscal Year 2012 | ||||||||||||||||
Sales | $ | 3,391 | $ | 2,670 | $ | 2,727 | $ | 2,911 | ||||||||
Cost of goods sold and occupancy costs | 2,213 | 1,700 | 1,746 | 1,884 | ||||||||||||
Gross profit | 1,178 | 970 | 981 | 1,027 | ||||||||||||
Direct store expenses | 871 | 682 | 689 | 741 | ||||||||||||
General and administrative expenses | 104 | 86 | 88 | 94 | ||||||||||||
Pre-opening expenses | 10 | 11 | 12 | 14 | ||||||||||||
Relocation, store closure and lease termination costs | 3 | 1 | 4 | 2 | ||||||||||||
Operating income | 190 | 190 | 188 | 176 | ||||||||||||
Interest expense | — | — | — | — | ||||||||||||
Investment and other income | 2 | 2 | 2 | 2 | ||||||||||||
Income before income taxes | 192 | 192 | 190 | 178 | ||||||||||||
Provision for income taxes | 74 | 74 | 73 | 65 | ||||||||||||
Net income | $ | 118 | $ | 118 | $ | 117 | $ | 113 | ||||||||
Basic earnings per share | $ | 0.33 | $ | 0.32 | $ | 0.32 | $ | 0.3 | ||||||||
Diluted earnings per share | $ | 0.33 | $ | 0.32 | $ | 0.31 | $ | 0.3 | ||||||||
Dividends declared per common share | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | ||||||||
Description_of_Business_Detail
Description of Business (Details) | 12 Months Ended |
Sep. 29, 2013 | |
Segment | |
State | |
Store | |
Entity Information [Line Items] | ' |
Number of Years Existence | '35 years |
Number of Stores | 362 |
Number of States in Which Entity Operates | 40 |
Number of Operating Segments | 1 |
Number of Reportable Segments | 1 |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 |
United States [Member] | ' |
Entity Information [Line Items] | ' |
Number of Stores | 347 |
United Kingdom [Member] | ' |
Entity Information [Line Items] | ' |
Number of Stores | 7 |
Canada [Member] | ' |
Entity Information [Line Items] | ' |
Number of Stores | 8 |
Desciption_of_Business_Details
Desciption of Business (Details 2) | 12 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 | |
Percentage sales by geographic area | ' | ' | ' |
Percentage of Total Sales | 100.00% | 100.00% | 100.00% |
Percentage of Total Net Long-Lived Assets | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' |
Percentage sales by geographic area | ' | ' | ' |
Percentage of Total Sales | 96.70% | 96.80% | 96.90% |
Percentage of Total Net Long-Lived Assets | 95.70% | 95.20% | 95.90% |
Canada and United Kingdom [Member] | ' | ' | ' |
Percentage sales by geographic area | ' | ' | ' |
Percentage of Total Sales | 3.30% | 3.20% | 3.10% |
Percentage of Total Net Long-Lived Assets | 4.30% | 4.80% | 4.10% |
Desciption_of_Business_Details1
Desciption of Business (Details 3) | 12 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 | |
Product Information [Line Items] | ' | ' | ' |
Percentage of Total Sales | 100.00% | 100.00% | 100.00% |
Prepared Foods and Bakery [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of Total Sales | 19.00% | 18.90% | 18.80% |
Other Perishables [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of Total Sales | 47.20% | 47.00% | 46.80% |
Total Perishables [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of Total Sales | 66.20% | 65.90% | 65.60% |
Non-perishables [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of Total Sales | 33.80% | 34.10% | 34.40% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 | |
Definition of fiscal year | ' | ' | ' |
Duration of fiscal year | '364 days | '371 days | '364 days |
Minimum [Member] | ' | ' | ' |
Definition of fiscal year | ' | ' | ' |
Duration of fiscal year | '364 days | ' | ' |
Maximum [Member] | ' | ' | ' |
Definition of fiscal year | ' | ' | ' |
Duration of fiscal year | '371 days | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Quarter | ||
Investments | ' | ' |
Number of fiscal quarters for a decline in the fair value of any investment below cost that is deemed to be other-than-temporary | 2 | ' |
Accounts Receivable | ' | ' |
Allowance for doubtful accounts | $3 | $4 |
Inventories | ' | ' |
Percentage of inventories covered under LIFO | 92.80% | 92.10% |
LIFO reserve | $32 | $30 |
Equipment | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' |
Equipment | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' |
Buildings | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '20 years | ' |
Buildings | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '50 years | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Insurance | ' | ' | ' |
Insurance liabilities | $135 | $115 | ' |
Cost of Goods Solds and Occupancy Costs | ' | ' | ' |
Percentage of purchases from largest supplier | 32.00% | 31.00% | 31.00% |
Direct Store Expenses | ' | ' | ' |
Advertising and marketing expense | $56 | $51 | $43 |
Definite-lived contract-based [Member] | ' | ' | ' |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Weighted average life (in years) | '17 years | ' | ' |
Definite-lived marketing-related and other [Member] | ' | ' | ' |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Weighted average life (in years) | '2 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Reserves for Closed Properties | ' | ' | ' |
Remaining lease terms, closed properties | '4 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Reserves for Closed Properties | ' | ' | ' |
Remaining lease terms, closed properties | '16 years | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 4) | 12 Months Ended |
Sep. 29, 2013 | |
Pre-opening Expenses | ' |
Average period for pre-opening rent expense (in years) | '9 months |
Average period for pre-opening costs other than rent (in days) | '60 days |
Stock Incentive Plan | ' |
Period from grant date to beginning of options vesting | '1 year |
Stock Purchase Plan | ' |
Minimum service hours for stock purchase plan eligibility | '400 hours |
Percentage discount from purchase date market value under stock purchase plan | 5.00% |
Option 1 [Member] | ' |
Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '5 years |
Option 2 [Member] | ' |
Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '9 years |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '7 years |
Option 3 [Member] | ' |
Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '10 years |
Restricted Stock [Member] | Option 1 [Member] | ' |
Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years |
Restricted Stock [Member] | Option 2 [Member] | ' |
Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years |
Restricted Stock [Member] | Option 3 [Member] | ' |
Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '6 years |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair value, Measurements, Recurring [Member], USD $) | Sep. 29, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Level 1 Inputs [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total | $73 | $16 |
Level 2 Inputs [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total | 1,156 | 1,360 |
Total [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total | 1,229 | 1,376 |
Money Market Funds [Member] | Level 1 Inputs [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash equivalents | 73 | 16 |
Money Market Funds [Member] | Total [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash equivalents | 73 | 16 |
Commercial Paper [Member] | Level 2 Inputs [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash equivalents | 104 | ' |
Marketable securities - available-for-sale | ' | 10 |
Commercial Paper [Member] | Total [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash equivalents | 104 | ' |
Marketable securities - available-for-sale | ' | 10 |
Municipal Notes Bonds [Member] | Level 2 Inputs [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash equivalents | 17 | 8 |
Marketable securities - available-for-sale | 1,010 | 983 |
Municipal Notes Bonds [Member] | Total [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash equivalents | 17 | 8 |
Marketable securities - available-for-sale | 1,010 | 983 |
Corporate Debt Securities [Member] | Level 2 Inputs [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Marketable securities - available-for-sale | 5 | 11 |
Corporate Debt Securities [Member] | Total [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Marketable securities - available-for-sale | 5 | 11 |
Variable Rate Demand Obligation [Member] | Level 2 Inputs [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Marketable securities - available-for-sale | 20 | 348 |
Variable Rate Demand Obligation [Member] | Total [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Marketable securities - available-for-sale | $20 | $348 |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Investments [Abstract] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $252 | $382 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $22 | $0 |
Short-term Investment Average Effective Maturity Period (in months) | '5 months | '5 months |
Long-term Investment Average Effective Maturity Period (in months) | '16 months | '15 months |
Investments_Details_2
Investments (Details 2) (USD $) | Sep. 29, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Current | $733 | $1,131 |
Available-for-sale Securities, Noncurrent | 302 | 221 |
Available-for-sale Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Current | 733 | 1,131 |
Available-for-sale Securities, Noncurrent | 302 | 221 |
Available-for-sale Securities [Member] | Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Current | ' | 10 |
Available-for-sale Securities [Member] | Corporate Note Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Current | ' | 5 |
Available-for-sale Securities [Member] | Municipal Notes [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Current | 713 | 768 |
Available-for-sale Securities [Member] | Variable Rate Demand Obligation [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Current | 20 | 348 |
Available-for-sale Securities [Member] | Corporate Bond Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Noncurrent | 5 | 6 |
Available-for-sale Securities [Member] | Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Noncurrent | $297 | $215 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 29, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $4,512 | $4,049 |
Less accumulated depreciation and amortization | -2,084 | -1,856 |
Property and equipment, net of accumulated depreciation and amortization | 2,428 | 2,193 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 77 | 77 |
Building and Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 2,427 | 2,220 |
Capitalized Real Estate Leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 33 | 25 |
Fixtures and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,706 | 1,513 |
Construction in Progress and Equipment not yet in Service [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $269 | $214 |
Property_and_Equipment_Details1
Property and Equipment (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation and amortization expense related to property and equipment | $324 | $297 | $274 |
Accumulated accelerated depreciation and other asset impairments included in property and equipment | 4 | 3 | ' |
Development costs of new locations | 339 | 262 | 203 |
Construction accruals included in other current liabilities | $103 | $80 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Store | |||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Goodwill, Acquired During Period | $16 | $0 | ' |
Number of Stores Acquired | 6 | ' | ' |
Goodwill, Impairment Loss | 0 | 0 | ' |
Finite-lived Intangible Assets Acquired | 6 | ' | ' |
Amortization of intangible assets | 5 | 6 | 7 |
Finite and Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 106 | 99 | ' |
Accumulated amortization | -41 | -37 | ' |
Definite-lived contract-based [Member] | ' | ' | ' |
Finite and Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 102 | 95 | ' |
Accumulated amortization | -40 | -35 | ' |
Definite-lived marketing-related and other [Member] | ' | ' | ' |
Finite and Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 1 | 2 | ' |
Accumulated amortization | -1 | -2 | ' |
Indefinite-lived contract-based [Member] | ' | ' | ' |
Finite and Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | $3 | $2 | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | Sep. 29, 2013 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 4 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 4 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 4 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 40 |
Finite-Lived Intangible Assets, Net | $62 |
Reserves_for_Closed_Properties2
Reserves for Closed Properties (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Store | Store | |
Restructuring Reserve [Roll Forward] | ' | ' |
Beginning balance | $41 | $45 |
Additions | 5 | 4 |
Usage | -11 | -10 |
Adjustments | 1 | 2 |
Ending Balance | 36 | 41 |
Restructuring Reserve, Period Expense, New Store Closures | $1 | ' |
New Closures, Number | 8 | 4 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2011 | Sep. 29, 2013 | Sep. 30, 2012 |
Debt Disclosure [Abstract] | ' | ' | ' |
Repayments of Secured Debt | $490 | ' | ' |
Long-term Debt | ' | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $350 | ' | ' |
Leases_Details
Leases (Details) (USD $) | Sep. 29, 2013 |
In Millions, unless otherwise specified | |
Leases [Abstract] | ' |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $3 |
Capital Leases, Future Minimum Payments Due in Two Years | 3 |
Capital Leases, Future Minimum Payments Due in Three Years | 3 |
Capital Leases, Future Minimum Payments Due in Four Years | 3 |
Capital Leases, Future Minimum Payments Due in Five Years | 3 |
Capital Leases, Future Minimum Payments Due Thereafter | 33 |
Minimum capital lease commitments | 48 |
Less amounts representing interest | 19 |
Net present value of capital lease obligations | 29 |
Operating leases, Future Minimum Payments, Due, Next Twelve Months | 359 |
Operating Leases Future Minimum Payments Due In Two Years | 404 |
Operating Leases, Future Minimum Payments, Due in Three Years | 432 |
Operating Leases, Future Minimum Payments, Due in Four Years | 437 |
Operating Leases, Future Minimum Payments, Due in Five Years | 444 |
Operating Leases, Future Minimum Payments, Due Thereafter | 5,366 |
Minimum operating lease commitments | 7,442 |
Operating Leases, Future Minimum Payments Receivable, Current | 7 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 6 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 6 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 5 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 4 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 9 |
Minimum sublease rental income | $37 |
Leases_Details_2
Leases (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Leases [Abstract] | ' | ' | ' |
Capital Lease Obligations | $27 | $24 | ' |
Rental expense charged to operations under operating leases | 374 | 353 | 322 |
Payment of contingent rentals | 13 | 12 | 10 |
Sublease rental income | $8 | $8 | $7 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Jul. 07, 2013 | Apr. 14, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 08, 2012 | Jan. 20, 2013 | Jan. 15, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Components of income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | $321 | $234 | $145 |
Current state income tax | ' | ' | ' | ' | ' | ' | ' | ' | 73 | 53 | 39 |
Current foreign income tax | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 4 | 5 |
Total current tax | ' | ' | ' | ' | ' | ' | ' | ' | 397 | 291 | 189 |
Deferred federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -44 | 1 | 21 |
Deferred state income tax | ' | ' | ' | ' | ' | ' | ' | ' | -10 | -6 | ' |
Deferred foreign income tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 |
Total deferred tax | ' | ' | ' | ' | ' | ' | ' | ' | -54 | -5 | 20 |
Total income tax expense | 74 | 88 | 89 | 65 | 73 | 74 | 92 | 74 | 343 | 286 | 209 |
Reconciliation of income tax expense to federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal income tax based on statutory rates | ' | ' | ' | ' | ' | ' | ' | ' | 313 | 263 | 193 |
Increase (reduction) in income taxes resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax-exempt interest | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Share-based payment expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 |
Excess charitable contributions | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -5 | -1 |
Federal income tax credits | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -2 | -4 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Total federal income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 303 | 256 | 186 |
State income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 41 | 31 | 24 |
Foreign income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Total income tax expense | 74 | 88 | 89 | 65 | 73 | 74 | 92 | 74 | 343 | 286 | 209 |
Income Taxes Receivable, Current | 7 | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
Accrued Income Taxes, Current | ' | ' | ' | $14 | ' | ' | ' | ' | ' | $14 | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Sep. 29, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Compensation-related costs | $122 | $98 |
Insurance-related costs | 48 | 41 |
Inventories | 1 | 1 |
Lease and other termination accruals | 15 | 17 |
Rent differential | 139 | 123 |
Deferred taxes associated with unrecognized tax benefit | ' | 1 |
Tax basis of fixed assets in excess of book basis | 7 | 6 |
Net domestic and international operating loss carryforwards | 18 | 18 |
Other | 5 | 5 |
Gross deferred tax assets | 355 | 310 |
Valuation allowance | -26 | -25 |
Total deferred tax assets | 329 | 285 |
Financial basis of fixed assets in excess of tax basis | -102 | -106 |
Capitalized costs expensed for tax purposes | -4 | -4 |
Total deferred tax liabilities | -106 | -110 |
Net deferred tax asset | 223 | 175 |
Deferred taxes for continuing operations | ' | ' |
Current assets | 151 | 132 |
Noncurrent assets | 72 | 43 |
Net deferred tax asset | $223 | $175 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax assets valuation allowance associated with international operating loss and federal tax credit carryforwards and unrecognized tax benefits | $26 | $25 |
Amount of unrecognized tax benefit that would affect the company's effective tax rate if recognized | 3 | ' |
Accrued interest and penalties related to uncertain tax positions | 2 | 2 |
Aggregate changes in the balance of gross unrecognized tax benefits, excludes interest and penalties | ' | ' |
Balance at beginning of period | 4 | 6 |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | ' | -2 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | -1 | ' |
Balance at end of period | 3 | 4 |
Foreign Tax Authority [Member] | ' | ' |
Operating loss carryforwards: | ' | ' |
International operating loss carryforwards having an indefinite life | $89 | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Jul. 07, 2013 | Apr. 14, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 08, 2012 | Jan. 20, 2013 | Jan. 15, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Common Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' Equity Note, Stock Split, Conversion Ratio | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Dividends Per Common Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.07 | $0.07 | $0.07 | $1.10 | $0.07 | $1.40 | $0.28 | $0.20 |
Dividends, Common Stock, Cash | ' | ' | ' | ' | ' | ' | ' | ' | $519 | $103 | $71 |
Special Dividend [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Per Common Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date Declared | ' | ' | ' | ' | ' | ' | 29-Nov-12 | ' | ' | ' | ' |
Dividends declared per common share (in dollars per share) | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' |
Dividends Payable, Date of Record | ' | ' | ' | ' | ' | ' | 10-Dec-12 | ' | ' | ' | ' |
Dividends Payable, Date to be Paid | ' | ' | ' | ' | ' | ' | 21-Dec-12 | ' | ' | ' | ' |
Dividends, Common Stock, Cash | ' | ' | ' | ' | ' | ' | 371 | ' | ' | ' | ' |
Dividend Declared [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Per Common Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date Declared | 10-Sep-13 | 12-Jun-13 | 15-Mar-13 | 6-Sep-12 | 30-May-12 | 9-Mar-12 | 7-Nov-12 | 2-Nov-11 | ' | ' | ' |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.07 | $0.07 | $0.07 | $0.10 | $0.07 | ' | ' | ' |
Dividends Payable, Date of Record | 27-Sep-13 | 5-Jul-13 | 12-Apr-13 | 28-Sep-12 | 29-Jun-12 | 5-Apr-12 | 18-Jan-13 | 13-Jan-12 | ' | ' | ' |
Dividends Payable, Date to be Paid | 8-Oct-13 | 16-Jul-13 | 23-Apr-13 | 9-Oct-12 | 10-Jul-12 | 17-Apr-12 | 29-Jan-13 | 24-Jan-12 | ' | ' | ' |
Dividends, Common Stock, Cash | $37 | $37 | $37 | $26 | $26 | $26 | $37 | $25 | ' | ' | ' |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Treasury Stock [Abstract] | ' | ' |
Treasury Stock, Shares, Acquired | 2.6 | 0.7 |
Treasury Stock Acquired, Average Cost Per Share | $48.70 | $41.34 |
Treasury Stock, Value, Acquired, Cost Method | $125 | $28 |
Nov. 2, 2011 Share Repurchase Program [Member] | ' | ' |
Treasury Stock [Abstract] | ' | ' |
Stock Repurchase Program, Authorized Amount | 200 | ' |
Stock Repurchase Program, Amount Utilized for Repurchases | 153 | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 47 | ' |
Nov. 15, 2012 Share Repurchase Program [Member] | ' | ' |
Treasury Stock [Abstract] | ' | ' |
Stock Repurchase Program, Authorized Amount | 300 | ' |
Stock Repurchase Program, Amount Utilized for Repurchases | 0 | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 300 | ' |
Total Share Repurchase Program [Member] | ' | ' |
Treasury Stock [Abstract] | ' | ' |
Stock Repurchase Program, Authorized Amount | 500 | ' |
Stock Repurchase Program, Amount Utilized for Repurchases | 153 | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 347 | ' |
Subsequent Event [Member] | Subsequent Share Repurchase Program [Member] | ' | ' |
Treasury Stock [Abstract] | ' | ' |
Stock Repurchase Program, Authorized Amount | 500 | ' |
Subsequent Event [Member] | Total Share Repurchase Program [Member] | ' | ' |
Treasury Stock [Abstract] | ' | ' |
Stock Repurchase Program, Authorized Amount | $800 | ' |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Jul. 07, 2013 | Apr. 14, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 08, 2012 | Jan. 20, 2013 | Jan. 15, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (numerator for basic and diluted earnings per share) | $121 | $142 | $142 | $113 | $117 | $118 | $146 | $118 | $551 | $466 | $343 |
Weighted average common shares outstanding (denominator for basic earnings per share) | ' | ' | ' | ' | ' | ' | ' | ' | 371.2 | 364.8 | 350.5 |
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share) | ' | ' | ' | ' | ' | ' | ' | ' | 374.5 | 368.9 | 354.6 |
Basic earnings per share (in dollars per share) | $0.33 | $0.38 | $0.38 | $0.30 | $0.32 | $0.32 | $0.39 | $0.33 | $1.48 | $1.28 | $0.98 |
Diluted earnings per share (in dollars per share) | $0.32 | $0.38 | $0.38 | $0.30 | $0.31 | $0.32 | $0.39 | $0.33 | $1.47 | $1.26 | $0.97 |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential common shares outstanding [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental common shares attributable to share-based payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 3.3 | 4.1 | 4.1 |
Earnings_per_Share_Details_2
Earnings per Share (Details 2) (Stock Options [Member]) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7.1 | 0.8 | 11.6 |
ShareBased_Payments_Details
Share-Based Payments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based payment expense before income taxes | $57 | $42 | $27 |
Income tax benefit | -22 | -16 | -10 |
Net share-based payment expense | 35 | 26 | 17 |
Cost of goods sold and occupancy costs [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based payment expense before income taxes | 2 | 2 | 1 |
Direct store expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based payment expense before income taxes | 32 | 22 | 14 |
General and administrative expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based payment expense before income taxes | $23 | $18 | $12 |
ShareBased_Payments_Details_2
Share-Based Payments (Details 2) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Common Stock Available for Future Stock Option Grants (in shares) | 42.3 | 16.8 | 23.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period, Weighted Average Grant Date Fair Value | $12.36 | $13.68 | $10.92 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $125 | $201 | $106 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 123 | 198 | 105 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 246 | 186 | 129 |
Unrecognized Share-based Payment Expense, Net of Estimated Forfeitures | 130 | 135 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 12.4 | 14.2 | ' |
Weighted Average Period for Recognition of Unrecognized Share-based Payment Expense (in years) | '3 years 1 month 6 days | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Vesting Options | 56 | 42 | 27 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 20 | 27.3 | 37.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4.3 | 7.2 | 6.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -4.1 | -13.7 | -13.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | -0.1 | -0.1 | -2.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | -0.9 | -0.7 | -0.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 19.2 | 20 | 27.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 18 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 5.6 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $30.17 | $24.50 | $23 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $51.33 | $44.23 | $31.25 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $20.52 | $26.44 | $21.97 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $18.86 | $25.10 | $33.31 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $37.20 | $28.32 | $18.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $36.90 | $30.17 | $24.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $36.37 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $26.60 | ' | ' |
Weighted Average Remaining Contractual Life [Abstract] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '5 years 2 months 12 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | '5 years 1 month 24 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | '4 years 2 months 19 days | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 413 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 395 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $179 | ' | ' |
ShareBased_Payments_Details_3
Share-Based Payments (Details 3) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 | Sep. 26, 2010 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 19.2 | 20 | 27.3 | 37.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $36.90 | $30.17 | $24.50 | $23 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '5 years 2 months 12 days | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 5.6 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $26.60 | ' | ' | ' |
Range of Exercise Prices from $5.56 to $18.49 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $5.56 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $18.49 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 1.3 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $9.60 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | '2 years 7 months 21 days | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1.2 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $9.50 | ' | ' | ' |
Range of Exercise Prices from $20.42 to $28.50 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $20.42 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $28.50 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 3 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $20.43 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | '4 years 2 months 16 days | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1.5 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $20.42 | ' | ' | ' |
Range of Exercise Prices from $31.25 to $31.25 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $31.25 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $31.25 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 4.3 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $31.25 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | '4 years 7 months 6 days | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1.6 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $31.25 | ' | ' | ' |
Range of Exercise Prices from $40.81 to $46.28 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $40.81 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $46.28 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 6.6 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $44.29 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | '5 years 7 months 17 days | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1.3 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $44.22 | ' | ' | ' |
Range of Exercise Prices from $51.25 to $51.86 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $51.25 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $51.86 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 4 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $51.86 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | '6 years 8 months 1 day | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 0 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $0 | ' | ' | ' |
ShareBased_Payments_Details_4
Share-Based Payments (Details 4) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Tranche | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.88% | 0.80% | 0.70% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.77% | 0.58% | 1.76% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 31.25% | 40.89% | 43.84% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '3 years 11 months 16 days | '4 years 1 month 21 days | '4 years 2 months 5 days |
Expected life calculation assumption, number of tranches | 2 | ' | ' |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 80,000 | 120,000 | 120,000 |
Common Stock Capital Shares Reserved for Future Issuance Employee Stock Purchase Plan | 540,000 | 620,000 | 740,000 |
Option 1 [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Expected volatility calculation assumption, historical volatility | '4 years | ' | ' |
Expected life calculation assumption, years of data | '5 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years | ' | ' |
Option 2 [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Expected volatility calculation assumption, historical volatility | '6 years | ' | ' |
Expected life calculation assumption, years of data | '7 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '9 years | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 83,000 | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross | 4 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 3 | ' | ' |
Restricted Stock [Member] | Option 1 [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' | ' |
Restricted Stock [Member] | Option 2 [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years | ' | ' |
Restricted Stock [Member] | Option 3 [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '6 years | ' | ' |
Team_Member_401k_Plan_Details
Team Member 401(k) Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Minimum annual services hours for 401 (k) plan eligibility | '1000 hours | ' | ' |
Period of time service hours acquired | '1 year | ' | ' |
Employer contributions to 401(k) plan | $6 | $5 | $5 |
Quarterly_Results_unaudited_De
Quarterly Results (unaudited) (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Jul. 07, 2013 | Apr. 14, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 08, 2012 | Jan. 20, 2013 | Jan. 15, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 25, 2011 |
Quarterly Financial [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | '371 days | '364 days |
Duration of first quarter | ' | ' | ' | ' | ' | ' | ' | ' | '112 days | ' | ' |
Duration of second quarter | ' | ' | ' | ' | ' | ' | ' | ' | '84 days | ' | ' |
Duration of third quarter | ' | ' | ' | ' | ' | ' | ' | ' | '84 days | ' | ' |
Duration of fourth quarter | ' | ' | ' | ' | ' | ' | ' | ' | '84 days | '91 days | ' |
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $2,976 | $3,058 | $3,027 | $2,911 | $2,727 | $2,670 | $3,856 | $3,391 | $12,917 | $11,699 | $10,108 |
Cost of goods sold and occupancy costs | 1,915 | 1,939 | 1,926 | 1,884 | 1,746 | 1,700 | 2,508 | 2,213 | 8,288 | 7,543 | 6,571 |
Gross profit | 1,061 | 1,119 | 1,101 | 1,027 | 981 | 970 | 1,348 | 1,178 | 4,629 | 4,156 | 3,537 |
Direct store expenses | 756 | 781 | 769 | 741 | 689 | 682 | 979 | 871 | 3,285 | 2,983 | 2,629 |
General and administrative expenses | 95 | 95 | 91 | 94 | 88 | 86 | 116 | 104 | 397 | 372 | 311 |
Pre-opening expenses | 15 | 13 | 10 | 14 | 12 | 11 | 14 | 10 | 52 | 47 | 41 |
Relocation, store closure and lease termination costs | 3 | 2 | 3 | 2 | 4 | 1 | 4 | 3 | 12 | 10 | 8 |
Operating income | 192 | 228 | 228 | 176 | 188 | 190 | 235 | 190 | 883 | 744 | 548 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 |
Investment and other income | 3 | 2 | 3 | 2 | 2 | 2 | 3 | 2 | 11 | 8 | 8 |
Income before income taxes | 195 | 230 | 231 | 178 | 190 | 192 | 238 | 192 | 894 | 752 | 552 |
Provision for income taxes | 74 | 88 | 89 | 65 | 73 | 74 | 92 | 74 | 343 | 286 | 209 |
Net income | $121 | $142 | $142 | $113 | $117 | $118 | $146 | $118 | $551 | $466 | $343 |
Basic earnings per share (in dollars per share) | $0.33 | $0.38 | $0.38 | $0.30 | $0.32 | $0.32 | $0.39 | $0.33 | $1.48 | $1.28 | $0.98 |
Diluted earnings per share (in dollars per share) | $0.32 | $0.38 | $0.38 | $0.30 | $0.31 | $0.32 | $0.39 | $0.33 | $1.47 | $1.26 | $0.97 |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.07 | $0.07 | $0.07 | $1.10 | $0.07 | $1.40 | $0.28 | $0.20 |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of fourth quarter | ' | ' | ' | ' | ' | ' | ' | ' | '84 days | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of fourth quarter | ' | ' | ' | ' | ' | ' | ' | ' | '91 days | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) | 12 Months Ended |
Sep. 29, 2013 | |
Foundation | |
Related Party Transactions [Abstract] | ' |
Number of nonprofit organizations | 2 |