Document and Entity
Document and Entity - shares | 9 Months Ended | |
Jul. 05, 2015 | Jul. 31, 2015 | |
Document and Entity [Abstract] | ||
Entity Registrant Name | WHOLE FOODS MARKET INC | |
Entity Central Index Key | 865,436 | |
Current Fiscal Year End Date | --09-27 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 5, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 357,858,014 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 05, 2015 | Sep. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 257 | $ 190 |
Short-term investments - available-for-sale securities | 434 | 553 |
Restricted cash | 128 | 109 |
Accounts receivable | 216 | 198 |
Merchandise inventories | 484 | 441 |
Prepaid expenses and other current assets | 102 | 97 |
Deferred income taxes | 183 | 168 |
Total current assets | 1,804 | 1,756 |
Property and equipment, net of accumulated depreciation and amortization | 3,163 | 2,923 |
Long-term investments - available-for-sale securities | 178 | 120 |
Goodwill | 710 | 708 |
Intangible assets, net of accumulated amortization | 80 | 81 |
Deferred income taxes | 69 | 132 |
Other assets | 32 | 24 |
Total assets | 6,036 | 5,744 |
Current liabilities: | ||
Current installments of capital lease obligations | 3 | 2 |
Accounts payable | 291 | 276 |
Accrued payroll, bonus and other benefits due team members | 405 | 379 |
Dividends payable | 47 | 43 |
Other current liabilities | 511 | 557 |
Total current liabilities | 1,257 | 1,257 |
Long-term capital lease obligations, less current installments | 60 | 60 |
Deferred lease liabilities | 578 | 548 |
Other long-term liabilities | 71 | 66 |
Total liabilities | $ 1,966 | $ 1,931 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value, 600.0 shares authorized; 377.1 shares issued; 358.6 and 360.4 shares outstanding at 2015 and 2014, respectively | $ 2,895 | $ 2,863 |
Common stock in treasury, at cost, 18.5 and 16.7 shares at 2015 and 2014, respectively | (809) | (711) |
Accumulated other comprehensive loss | (22) | (7) |
Retained earnings | 2,006 | 1,668 |
Total shareholders’ equity | 4,070 | 3,813 |
Total liabilities and shareholders’ equity | $ 6,036 | $ 5,744 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions, None in scaling factor is -9223372036854775296 | Jul. 05, 2015 | Sep. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 600 | 600 |
Common Stock, Shares, Issued | 377.1 | 377.1 |
Common Stock, Shares, Outstanding | 358.6 | 360.4 |
Common Stock, No Par Value | ||
Treasury Stock, Shares | 18.5 | 16.7 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 3,632 | $ 3,377 | $ 11,951 | $ 10,938 |
Cost of goods sold and occupancy costs | 2,339 | 2,163 | 7,721 | 7,048 |
Gross profit | 1,293 | 1,214 | 4,230 | 3,890 |
Selling, general and administrative expenses | 1,032 | 951 | 3,392 | 3,107 |
Pre-opening expenses | 12 | 18 | 53 | 45 |
Relocation, store closure and lease termination costs | 2 | 2 | 12 | 9 |
Operating income | 247 | 243 | 773 | 729 |
Investment and other income, net of interest expense | 5 | 4 | 12 | 10 |
Income before income taxes | 252 | 247 | 785 | 739 |
Provision for income taxes | 98 | 96 | 306 | 288 |
Net income | $ 154 | $ 151 | $ 479 | $ 451 |
Basic earnings per share (in dollars per share) | $ 0.43 | $ 0.41 | $ 1.33 | $ 1.22 |
Weighted average shares outstanding (in shares) | 358.5 | 365 | 359.6 | 369.9 |
Diluted earnings per share (in dollars per share) | $ 0.43 | $ 0.41 | $ 1.32 | $ 1.21 |
Weighted average shares outstanding, diluted basis (in shares) | 360.5 | 367.2 | 362.2 | 372.9 |
Dividends declared per common share (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.39 | $ 0.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 154 | $ 151 | $ 479 | $ 451 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 3 | 4 | (15) | 1 |
Other comprehensive income (loss), net of tax | 3 | 4 | (15) | 1 |
Comprehensive income | $ 157 | $ 155 | $ 464 | $ 452 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Common stock in treasury | Accumulated other comprehensive income (loss) | Retained earnings |
Balances at Sep. 29, 2013 | $ 3,878 | $ 2,765 | $ (153) | $ 1 | $ 1,265 |
Balances (in shares) at Sep. 29, 2013 | 372.4 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 579 | 579 | |||
Other comprehensive loss, net of tax | (8) | (8) | |||
Dividends ($0.39 and $0.48 per common share for the forty weeks ended July 5, 2015 and fiscal year ended September 28, 2014, respectively) | (176) | (176) | |||
Issuance of common stock pursuant to team member stock plans | 41 | $ 21 | 20 | ||
Issuance of common stock pursuant to team member stock plans (in shares) | 1.9 | ||||
Purchase of treasury stock | (578) | (578) | |||
Purchase of treasury stock (in shares) | (13.9) | ||||
Tax benefit related to exercise of team member stock options | 9 | $ 9 | |||
Share-based payment expense | 68 | 68 | |||
Balances at Sep. 28, 2014 | $ 3,813 | $ 2,863 | (711) | (7) | 1,668 |
Balances (in shares) at Sep. 28, 2014 | 360.4 | 360.4 | |||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | $ 479 | 479 | |||
Other comprehensive loss, net of tax | (15) | (15) | |||
Dividends ($0.39 and $0.48 per common share for the forty weeks ended July 5, 2015 and fiscal year ended September 28, 2014, respectively) | (140) | (140) | |||
Issuance of common stock pursuant to team member stock plans | 61 | $ (29) | 90 | ||
Issuance of common stock pursuant to team member stock plans (in shares) | 2.1 | ||||
Purchase of treasury stock | $ (188) | (188) | |||
Purchase of treasury stock (in shares) | (3.9) | (3.9) | |||
Tax benefit related to exercise of team member stock options | $ 10 | $ 10 | |||
Share-based payment expense | 51 | 51 | |||
Other | (1) | (1) | |||
Balances at Jul. 05, 2015 | $ 4,070 | $ 2,895 | $ (809) | $ (22) | $ 2,006 |
Balances (in shares) at Jul. 05, 2015 | 358.6 | 358.6 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jul. 05, 2015 | Apr. 12, 2015 | Sep. 28, 2014 | Jul. 06, 2014 | Apr. 13, 2014 | Jan. 18, 2015 | Jan. 19, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | Sep. 28, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||
Dividends declared per common share (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.13 | $ 0.12 | $ 0.39 | $ 0.36 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 05, 2015 | Jul. 06, 2014 | |
Cash flows from operating activities | ||
Net income | $ 479 | $ 451 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 331 | 286 |
Share-based payment expense | 51 | 51 |
LIFO expense | 3 | 11 |
Deferred income tax expense (benefit) | 47 | (30) |
Excess tax benefit related to exercise of team member stock options | (10) | (8) |
Accretion of premium/discount on marketable securities | 14 | 22 |
Deferred lease liabilities | 24 | 28 |
Other | 10 | 8 |
Net change in current assets and liabilities: | ||
Accounts receivable | (19) | (46) |
Merchandise inventories | (47) | (24) |
Prepaid expenses and other current assets | (4) | (13) |
Accounts payable | 16 | 22 |
Accrued payroll, bonus and other benefits due team members | 26 | 28 |
Other current liabilities | 72 | 76 |
Net change in other long-term liabilities | 4 | (3) |
Net cash provided by operating activities | 997 | 859 |
Cash flows from investing activities | ||
Development costs of new locations | (411) | (329) |
Other property and equipment expenditures | (268) | (196) |
Purchases of available-for-sale securities | (458) | (648) |
Sales and maturities of available-for-sale securities | 497 | 959 |
Purchases of intangible assets | (3) | (19) |
Decrease (increase) in restricted cash | (19) | 2 |
Payment for purchase of acquired entities, net of cash acquired | (4) | (73) |
Other investing activities | (5) | (17) |
Net cash used in investing activities | (671) | (321) |
Cash flows from financing activities | ||
Purchase of treasury stock | (188) | (478) |
Common stock dividends paid | (137) | (126) |
Issuance of common stock | 61 | 35 |
Excess tax benefit related to exercise of team member stock options | 10 | 8 |
Other financing activities | (1) | (1) |
Net cash used in financing activities | (255) | (562) |
Effect of exchange rate changes on cash and cash equivalents | (4) | (2) |
Net change in cash and cash equivalents | 67 | (26) |
Cash and cash equivalents at beginning of period | 190 | 290 |
Cash and cash equivalents at end of period | 257 | 264 |
Supplemental disclosure of cash flow information: | ||
Federal and state income taxes paid | $ 263 | $ 329 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 05, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements of Whole Foods Market, Inc. and its consolidated subsidiaries (collectively “Whole Foods Market,” “Company,” or “we”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2014 . In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation. Where appropriate, we have reclassified prior year financial statements to conform to current year presentation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a 52 - or 53 -week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal years 2015 and 2014 are 52 -week years. The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets. The following is a summary of percentage sales by geographic area for the periods indicated: Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Sales: United States 96.9 % 96.6 % 96.9 % 96.7 % Canada and United Kingdom 3.1 3.4 3.1 3.3 Total sales 100.0 % 100.0 % 100.0 % 100.0 % The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated: July 5, September 28, Long-lived assets, net: United States 96.7 % 96.0 % Canada and United Kingdom 3.3 4.0 Total long-lived assets, net 100.0 % 100.0 % |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 05, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Selling, General and Administrative Expenses Selling, general and administrative expenses consist of retail operational expenses, marketing, and corporate and regional administrative support costs. Advertising costs are charged to expense as incurred, except for certain production costs that are charged to expense when the advertising first takes place. Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Simplifying the Measurement of Inventory,” which amends Accounting Standards Codification (“ASC”) topic 330, “Inventory.” The amendments, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and should be applied on a prospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 30, 2018. We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which amends ASC topic 820, “Fair Value Measurements.” The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and remove certain related disclosure requirements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and should be applied on a retrospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 24, 2017. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which amends ASC 350, “Intangibles – Goodwill and Other.” The amendments provide guidance as to whether a cloud computing arrangement (e.g., software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 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 24, 2017. We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis,” which amends ASC 810, “Consolidation.” The amendments revise the consolidation analysis related to limited partnerships and similar legal entities, variable interest entities, and certain investment funds. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and may be applied on either a modified or full retrospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 24, 2017. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which creates a new topic in the ASC, topic 606, “Revenue from Contracts with Customers.” The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and may be applied on either a full or modified retrospective basis. In July 2015, the FASB approved an optional one-year deferral of the effective date. Based on the deferral, the provisions are effective for the Company’s first quarter of fiscal year ending September 30, 2018 or fiscal year ending September 29, 2019. We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements, as well as the timing and method of adoption. In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which amends ASC 205, “Presentation of Financial Statements,” and ASC 360, “Property, Plant, and Equipment.” The amendments raise the threshold for reporting discontinued operations to only those disposals that represent a strategic shift or have a major impact on an entity’s financial results and operations. The amendments also expand related disclosure requirements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and should be applied on a prospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 25, 2016. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. Effective September 29, 2014, the Company adopted 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 adoption, which provides 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 did not have a significant impact on the Company’s consolidated financial statements. Effective September 29, 2014, the Company adopted 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 adoption, which provides 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 did not have a significant impact on the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 05, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements 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 that 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. 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. The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels indicated (in millions): July 5, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 78 $ — $ — $ 78 Marketable securities - available-for-sale: Asset-backed securities — 29 — 29 Certificates of deposit — 3 — 3 Corporate bonds — 115 — 115 Municipal bonds — 465 — 465 Total $ 78 $ 612 $ — $ 690 September 28, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 46 $ — $ — $ 46 Treasury bills 4 — — 4 Commercial paper — 15 — 15 Marketable securities - available-for-sale: Asset-backed securities — 13 — 13 Commercial paper — 33 — 33 Corporate bonds — 97 — 97 Municipal bonds — 530 — 530 Total $ 50 $ 688 $ — $ 738 |
Investments
Investments | 9 Months Ended |
Jul. 05, 2015 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investments The Company holds investments primarily 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): July 5, September 28, Short-term marketable securities - available-for-sale: Asset-backed securities $ 22 $ 9 Certificates of deposit 3 — Commercial paper — 33 Corporate bonds 79 56 Municipal bonds 330 455 Total short-term marketable securities $ 434 $ 553 Long-term marketable securities - available-for-sale: Asset-backed securities $ 7 $ 4 Corporate bonds 36 41 Municipal bonds 135 75 Total long-term marketable securities $ 178 $ 120 Gross unrealized holding gains and losses were not material at July 5, 2015 or September 28, 2014 . Available-for-sale securities totaling approximately $378 million and $142 million were in unrealized loss positions at July 5, 2015 and September 28, 2014 , respectively. The aggregate value of available-for-sale securities in a continuous unrealized loss position for greater than 12 months was not material at July 5, 2015 or September 28, 2014 . The Company did not recognize any other-than-temporary impairments during the forty weeks ended July 5, 2015 or fiscal year ended September 28, 2014 . At July 5, 2015 , the average effective maturity of the Company’s short- and long-term available-for-sale securities was approximately 7 months and 17 months, respectively, compared to approximately 6 months and 15 months, respectively, at September 28, 2014 . At July 5, 2015 and September 28, 2014 , the Company held $10 million in equity interest that is accounted for using the cost method of accounting. Additionally, the Company held ownership interests in supplier companies totaling approximately $5 million and $4 million at July 5, 2015 and September 28, 2014 , respectively, which are accounted for using the equity method of accounting. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jul. 05, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Additions and adjustments to goodwill and additions of other intangible assets during the forty weeks ended July 5, 2015 were not material. The Company recorded goodwill totaling approximately $29 million related to the acquisition of four retail locations and acquired definite-lived intangible assets totaling approximately $18 million , primarily related to acquired leasehold rights, during the forty weeks ended July 6, 2014 . The components of intangible assets as of the dates indicated were as follows (in millions): July 5, 2015 September 28, 2014 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Definite-lived contract-based $ 122 $ (49 ) $ 120 $ (45 ) Definite-lived marketing-related and other — — 1 (1 ) Indefinite-lived contract-based 7 6 Total $ 129 $ (49 ) $ 127 $ (46 ) Amortization expense associated with intangible assets was not material during the twelve and forty weeks ended July 5, 2015 or the same periods of the prior fiscal year. Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions): Remainder of fiscal year 2015 $ 2 Fiscal year 2016 6 Fiscal year 2017 5 Fiscal year 2018 5 Fiscal year 2019 5 Future fiscal years 50 Total $ 73 |
Reserves for Closed Properties
Reserves for Closed Properties | 9 Months Ended |
Jul. 05, 2015 | |
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 forty weeks ended July 5, 2015 and fiscal year ended September 28, 2014 (in millions): July 5, September 28, Beginning balance $ 31 $ 36 Additions 7 4 Usage (10 ) (11 ) Adjustments 1 2 Ending balance $ 29 $ 31 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jul. 05, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity Dividends per Common Share The following table provides a summary of dividends declared per common share during fiscal year 2015 to date and fiscal year 2014 (in millions, except per share amounts): Date of declaration Dividend per common share Date of record Date of payment Total amount Fiscal year 2015: November 5, 2014 $ 0.13 January 16, 2015 January 27, 2015 $ 47 March 10, 2015 0.13 April 10, 2015 April 21, 2015 47 June 9, 2015 (1) 0.13 July 2, 2015 July 14, 2015 47 Fiscal year 2014: November 1, 2013 $ 0.12 January 17, 2014 January 28, 2014 $ 45 February 24, 2014 0.12 April 11, 2014 April 22, 2014 44 June 12, 2014 0.12 July 3, 2014 July 15, 2014 44 September 11, 2014 0.12 September 26, 2014 October 7, 2014 43 (1) Dividend accrued at July 5, 2015 Treasury Stock During fiscal year 2014, a new share repurchase program was authorized pursuant to the authority of the Company’s Board of Directors whereby the Company may make up to $1.0 billion in stock purchases of outstanding shares of the common stock of the Company through August 1, 2016. The following table outlines the share repurchase program authorized by the Company’s Board of Directors, and the related repurchase activity as of July 5, 2015 (in millions): Effective date Expiration date Amount authorized Cost of repurchases Authorization available August 1, 2014 August 1, 2016 $ 1,000 $ 288 $ 712 Under the share repurchase program, purchases can be made from time to time using a variety of methods, which may include open market purchases. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. Purchases may be made through a Rule 10b5-1 plan pursuant to pre-determined metrics set forth in such plan. The Board’s authorization of the share repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or discontinued at any time at the Company’s discretion. Share repurchase activity prior to the fourth quarter of fiscal year 2014 was pursuant to various repurchase programs authorized by the Company’s Board of Directors. As of July 5, 2015 , one share repurchase program remains in effect, with prior programs having expired or been cancelled. Share repurchase activity for the periods indicated was as follows (in millions, except per share amounts): Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Number of common shares acquired 2.1 9.1 3.9 11.2 Average price per common share acquired $ 45.98 $ 39.45 $ 48.29 $ 42.31 Total cost of common shares acquired $ 98 $ 361 $ 188 $ 478 During the forty weeks ended July 5, 2015 , the Company reissued approximately 2.1 million treasury shares at cost of approximately $90 million to satisfy the issuance of common stock pursuant to team member stock plans. At July 5, 2015 and September 28, 2014 , the Company held in treasury approximately 18.5 million shares and 16.7 million shares, respectively, totaling approximately $809 million and $711 million , respectively. Subsequent to the end of the third quarter of fiscal year 2015, the Company repurchased approximately 0.9 million shares of the Company’s common stock at an average price per share of $36.38 for a total of approximately $33 million bringing the total current available authorization to approximately $679 million . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jul. 05, 2015 | |
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 follows (in millions, except per share amounts): Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Net income (numerator for basic and diluted earnings per share) $ 154 $ 151 $ 479 $ 451 Weighted average common shares outstanding (denominator for basic earnings per share) 358.5 365.0 359.6 369.9 Incremental common shares attributable to dilutive effect of share-based awards 2.0 2.2 2.6 3.0 Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share) 360.5 367.2 362.2 372.9 Basic earnings per share $ 0.43 $ 0.41 $ 1.33 $ 1.22 Diluted earnings per share $ 0.43 $ 0.41 $ 1.32 $ 1.21 The computation of diluted earnings per share for the twelve and forty weeks ended July 5, 2015 does not include share-based awards to purchase approximately 13.8 million shares and 9.8 million shares of common stock, respectively, due to their antidilutive effect. The computation of diluted earnings per share for the twelve and forty weeks ended July 6, 2014 does not include share-based awards to purchase approximately 13.8 million shares and 7.2 million shares of common stock, respectively, due to their antidilutive effect. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Jul. 05, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Share-Based Payments Share-based payment expense before income taxes recognized during the twelve and forty weeks ended July 5, 2015 totaled approximately $14 million and $51 million , respectively, and approximately $15 million and $51 million , respectively, for the same periods of the prior fiscal year. Share-based payment expense was included in the following line items on the Consolidated Statements of Operations for the periods indicated (in millions): Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Cost of goods sold and occupancy costs $ 1 $ 1 $ 2 $ 2 Selling, general and administrative expenses 13 14 49 49 Share-based payment expense before income taxes 14 15 51 51 Income tax benefit (5 ) (6 ) (20 ) (20 ) Net share-based payment expense $ 9 $ 9 $ 31 $ 31 At July 5, 2015 and September 28, 2014 , approximately 32.6 million shares and 37.6 million shares of the Company’s common stock, respectively, were available for future stock incentive grants. Stock Options During the twelve and forty weeks ended July 5, 2015 , the Company awarded approximately 4.8 million stock options and 5.3 million stock options, respectively, pursuant to the Whole Foods Market 2009 Stock Incentive Plan compared to approximately 4.4 million stock options and 5.2 million stock options, respectively, for the same periods of the prior fiscal year. The weighted average grant date fair value of options granted during the forty weeks ended July 5, 2015 and July 6, 2014 was $10.19 and $9.68 , respectively. The fair value of stock option grants during the forty weeks ended July 5, 2015 and July 6, 2014 has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2015 2014 Expected dividend yield 1.000 % 0.960 % Risk-free interest rate 1.20 % 1.16 % Expected volatility 29.73 % 30.61 % Expected life, in years 4.04 3.94 Total share-based payment expense related to vesting stock options totaled approximately $13 million and $48 million for the twelve and forty weeks ended July 5, 2015 , respectively, and approximately $14 million and $48 million , respectively, for the same periods of the prior fiscal year. At July 5, 2015 and September 28, 2014 , there was approximately $108 million of unrecognized share-based payment expense, respectively, related to unvested stock options, net of estimated forfeitures, related to approximately 11.5 million shares and 11.9 million shares, respectively. The Company anticipates this expense to be recognized over a weighted average period of 3.1 years. Restricted Stock During the forty weeks ended July 5, 2015 and July 6, 2014 , the Company awarded approximately 0.1 million shares and 0.2 million shares of restricted common stock, respectively, pursuant to the Whole Foods Market 2009 Stock Incentive Plan. Fair value of the restricted share issuances on grant date for the forty weeks ended July 5, 2015 and July 6, 2014 totaled approximately $3 million and $11 million , respectively. Total share-based payment expense related to restricted shares for the twelve and forty weeks ended July 5, 2015 and July 6, 2014 included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations was not material. At July 5, 2015 and September 28, 2014 , there was approximately $10 million of unrecognized share-based payment expense, respectively, related to unvested restricted stock. The Company anticipates this expense to be recognized over a weighted average period of 3.3 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 05, 2015 | |
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. Additionally, the Company has retention agreements with certain members of Company management which provide for payments under certain circumstances including change of control. 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 | 9 Months Ended |
Jul. 05, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions The Company provides ongoing support to three independent nonprofit organizations: Whole Planet Foundation, Whole Kids Foundation, and Whole Cities 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 dedicated to improving children’s nutrition through partnerships with schools, educators, and other organizations. Whole Cities Foundation is dedicated to supporting efforts to increase access to nutritious, fresh food and health education in underserved communities. 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 Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 05, 2015 | |
Accounting Policies [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | The Company reports its results of operations on a 52 - or 53 -week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal years 2015 and 2014 are 52 -week years. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling, general and administrative expenses consist of retail operational expenses, marketing, and corporate and regional administrative support costs. Advertising costs are charged to expense as incurred, except for certain production costs that are charged to expense when the advertising first takes place. |
New Accounting Pronouncements, Policy [Policy Text Block] | In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Simplifying the Measurement of Inventory,” which amends Accounting Standards Codification (“ASC”) topic 330, “Inventory.” The amendments, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and should be applied on a prospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 30, 2018. We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which amends ASC topic 820, “Fair Value Measurements.” The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and remove certain related disclosure requirements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and should be applied on a retrospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 24, 2017. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which amends ASC 350, “Intangibles – Goodwill and Other.” The amendments provide guidance as to whether a cloud computing arrangement (e.g., software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 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 24, 2017. We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis,” which amends ASC 810, “Consolidation.” The amendments revise the consolidation analysis related to limited partnerships and similar legal entities, variable interest entities, and certain investment funds. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and may be applied on either a modified or full retrospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 24, 2017. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which creates a new topic in the ASC, topic 606, “Revenue from Contracts with Customers.” The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and may be applied on either a full or modified retrospective basis. In July 2015, the FASB approved an optional one-year deferral of the effective date. Based on the deferral, the provisions are effective for the Company’s first quarter of fiscal year ending September 30, 2018 or fiscal year ending September 29, 2019. We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements, as well as the timing and method of adoption. In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which amends ASC 205, “Presentation of Financial Statements,” and ASC 360, “Property, Plant, and Equipment.” The amendments raise the threshold for reporting discontinued operations to only those disposals that represent a strategic shift or have a major impact on an entity’s financial results and operations. The amendments also expand related disclosure requirements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and should be applied on a prospective basis. The provisions are effective for the Company’s first quarter of fiscal year ending September 25, 2016. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. Effective September 29, 2014, the Company adopted 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 adoption, which provides 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 did not have a significant impact on the Company’s consolidated financial statements. Effective September 29, 2014, the Company adopted 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 adoption, which provides 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 did not have a significant impact on the Company’s consolidated financial statements. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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 that 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. 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. |
Earnings Per Share, Policy [Policy Text Block] | 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Entity Wide Information Geographic Area Revenue [Table Text Block] | The following is a summary of percentage sales by geographic area for the periods indicated: Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Sales: United States 96.9 % 96.6 % 96.9 % 96.7 % Canada and United Kingdom 3.1 3.4 3.1 3.3 Total sales 100.0 % 100.0 % 100.0 % 100.0 % |
Schedule of Entity Wide Information Geographic Area Long-Lived Assets [Table Text Block] | The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated: July 5, September 28, Long-lived assets, net: United States 96.7 % 96.0 % Canada and United Kingdom 3.3 4.0 Total long-lived assets, net 100.0 % 100.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
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): July 5, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 78 $ — $ — $ 78 Marketable securities - available-for-sale: Asset-backed securities — 29 — 29 Certificates of deposit — 3 — 3 Corporate bonds — 115 — 115 Municipal bonds — 465 — 465 Total $ 78 $ 612 $ — $ 690 September 28, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 46 $ — $ — $ 46 Treasury bills 4 — — 4 Commercial paper — 15 — 15 Marketable securities - available-for-sale: Asset-backed securities — 13 — 13 Commercial paper — 33 — 33 Corporate bonds — 97 — 97 Municipal bonds — 530 — 530 Total $ 50 $ 688 $ — $ 738 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
Investments [Abstract] | |
Marketable Securities [Table Text Block] | The Company held the following investments at fair value as of the dates indicated (in millions): July 5, September 28, Short-term marketable securities - available-for-sale: Asset-backed securities $ 22 $ 9 Certificates of deposit 3 — Commercial paper — 33 Corporate bonds 79 56 Municipal bonds 330 455 Total short-term marketable securities $ 434 $ 553 Long-term marketable securities - available-for-sale: Asset-backed securities $ 7 $ 4 Corporate bonds 36 41 Municipal bonds 135 75 Total long-term marketable securities $ 178 $ 120 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
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 as of the dates indicated were as follows (in millions): July 5, 2015 September 28, 2014 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Definite-lived contract-based $ 122 $ (49 ) $ 120 $ (45 ) Definite-lived marketing-related and other — — 1 (1 ) Indefinite-lived contract-based 7 6 Total $ 129 $ (49 ) $ 127 $ (46 ) |
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 as follows (in millions): Remainder of fiscal year 2015 $ 2 Fiscal year 2016 6 Fiscal year 2017 5 Fiscal year 2018 5 Fiscal year 2019 5 Future fiscal years 50 Total $ 73 |
Reserves for Closed Properties
Reserves for Closed Properties (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
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 forty weeks ended July 5, 2015 and fiscal year ended September 28, 2014 (in millions): July 5, September 28, Beginning balance $ 31 $ 36 Additions 7 4 Usage (10 ) (11 ) Adjustments 1 2 Ending balance $ 29 $ 31 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | The following table provides a summary of dividends declared per common share during fiscal year 2015 to date and fiscal year 2014 (in millions, except per share amounts): Date of declaration Dividend per common share Date of record Date of payment Total amount Fiscal year 2015: November 5, 2014 $ 0.13 January 16, 2015 January 27, 2015 $ 47 March 10, 2015 0.13 April 10, 2015 April 21, 2015 47 June 9, 2015 (1) 0.13 July 2, 2015 July 14, 2015 47 Fiscal year 2014: November 1, 2013 $ 0.12 January 17, 2014 January 28, 2014 $ 45 February 24, 2014 0.12 April 11, 2014 April 22, 2014 44 June 12, 2014 0.12 July 3, 2014 July 15, 2014 44 September 11, 2014 0.12 September 26, 2014 October 7, 2014 43 (1) Dividend accrued at July 5, 2015 |
Schedule of Share Repurchase Programs [Table Text Block] | The following table outlines the share repurchase program authorized by the Company’s Board of Directors, and the related repurchase activity as of July 5, 2015 (in millions): Effective date Expiration date Amount authorized Cost of repurchases Authorization available August 1, 2014 August 1, 2016 $ 1,000 $ 288 $ 712 |
Schedule of Shares Repurchased [Table Text Block] | Share repurchase activity for the periods indicated was as follows (in millions, except per share amounts): Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Number of common shares acquired 2.1 9.1 3.9 11.2 Average price per common share acquired $ 45.98 $ 39.45 $ 48.29 $ 42.31 Total cost of common shares acquired $ 98 $ 361 $ 188 $ 478 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts): Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Net income (numerator for basic and diluted earnings per share) $ 154 $ 151 $ 479 $ 451 Weighted average common shares outstanding (denominator for basic earnings per share) 358.5 365.0 359.6 369.9 Incremental common shares attributable to dilutive effect of share-based awards 2.0 2.2 2.6 3.0 Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share) 360.5 367.2 362.2 372.9 Basic earnings per share $ 0.43 $ 0.41 $ 1.33 $ 1.22 Diluted earnings per share $ 0.43 $ 0.41 $ 1.32 $ 1.21 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Jul. 05, 2015 | |
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 periods indicated (in millions): Twelve weeks ended Forty weeks ended July 5, July 6, July 5, July 6, Cost of goods sold and occupancy costs $ 1 $ 1 $ 2 $ 2 Selling, general and administrative expenses 13 14 49 49 Share-based payment expense before income taxes 14 15 51 51 Income tax benefit (5 ) (6 ) (20 ) (20 ) Net share-based payment expense $ 9 $ 9 $ 31 $ 31 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of stock option grants during the forty weeks ended July 5, 2015 and July 6, 2014 has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2015 2014 Expected dividend yield 1.000 % 0.960 % Risk-free interest rate 1.20 % 1.16 % Expected volatility 29.73 % 30.61 % Expected life, in years 4.04 3.94 |
Basis of Presentation (Details)
Basis of Presentation (Details) - Segment | 9 Months Ended | 12 Months Ended |
Jul. 05, 2015 | Sep. 28, 2014 | |
Organization Consolidation and Presentation [Line Items] | ||
Number of Operating Segments | 1 | |
Number of Reportable Segments | 1 | |
Fiscal Year [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 364 days | 364 days |
Fiscal Year [Member] | Minimum [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 364 days | |
Fiscal Year [Member] | Maximum [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 371 days | |
First Quarter [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 112 days | |
Second Quarter [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 84 days | |
Third Quarter [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 84 days | |
Fourth Quarter [Member] | Minimum [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 84 days | |
Fourth Quarter [Member] | Maximum [Member] | ||
Organization Consolidation and Presentation [Line Items] | ||
Fiscal Period Duration | 91 days |
Basis of Presentation (Details
Basis of Presentation (Details 2) | 3 Months Ended | 9 Months Ended | ||
Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | |
Percentage sales by geographic area | ||||
Percentage of Total Sales | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ||||
Percentage sales by geographic area | ||||
Percentage of Total Sales | 96.90% | 96.60% | 96.90% | 96.70% |
Canada and United Kingdom [Member] | ||||
Percentage sales by geographic area | ||||
Percentage of Total Sales | 3.10% | 3.40% | 3.10% | 3.30% |
Basis of Presentation (Detail31
Basis of Presentation (Details 3) | Jul. 05, 2015 | Sep. 28, 2014 |
Percentage net long-lived assets by geographic area | ||
Percentage of Total Net Long-Lived Assets | 100.00% | 100.00% |
United States [Member] | ||
Percentage net long-lived assets by geographic area | ||
Percentage of Total Net Long-Lived Assets | 96.70% | 96.00% |
Canada and United Kingdom [Member] | ||
Percentage net long-lived assets by geographic area | ||
Percentage of Total Net Long-Lived Assets | 3.30% | 4.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jul. 05, 2015 | Sep. 28, 2014 |
Assets, Fair Value Disclosure [Abstract] | ||
Total | $ 690 | $ 738 |
Level 1 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 78 | 50 |
Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 612 | 688 |
Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 78 | 46 |
Money Market Funds [Member] | Level 1 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 78 | 46 |
US Treasury Bill Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 4 | |
US Treasury Bill Securities [Member] | Level 1 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 4 | |
Commercial Paper [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 15 | |
Marketable Securities - Available-for-sale | 33 | |
Commercial Paper [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 15 | |
Marketable Securities - Available-for-sale | 33 | |
Asset-backed Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 29 | 13 |
Asset-backed Securities [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 29 | 13 |
Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 3 | |
Certificates of Deposit [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 3 | |
Corporate Debt Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 115 | 97 |
Corporate Debt Securities [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 115 | 97 |
Municipal Notes Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 465 | 530 |
Municipal Notes Bonds [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | $ 465 | $ 530 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Jul. 05, 2015 | Sep. 28, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | $ 434 | $ 553 |
Available-for-sale Securities, Noncurrent | 178 | 120 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 22 | 9 |
Available-for-sale Securities, Noncurrent | 7 | 4 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 3 | |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 33 | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 79 | 56 |
Available-for-sale Securities, Noncurrent | 36 | 41 |
Municipal Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 330 | 455 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Noncurrent | $ 135 | $ 75 |
Investments (Details 2)
Investments (Details 2) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 05, 2015 | Sep. 28, 2014 | |
Investments [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 378 | $ 142 |
Short-term Investments Average Effective Maturity Period (in months) | 7 months | 6 months |
Long-term Investments Average Effective Maturity Period (in months) | 17 months | 15 months |
Cost Method Investments | $ 10 | $ 10 |
Equity Method Investments | $ 5 | $ 4 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Details) $ in Millions | 9 Months Ended | ||
Jul. 06, 2014USD ($)Store | Jul. 05, 2015USD ($) | Sep. 28, 2014USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Acquired During Period | $ 29 | ||
Number of Stores Acquired | Store | 4 | ||
Finite-lived Intangible Assets Acquired | $ 18 | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Finite and Indefinite-Lived Intangible Assets, Gross | $ 129 | $ 127 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (49) | (46) | |
Contract-Based Intangible Assets [Member] | |||
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 122 | 120 | |
Indefinite-Lived Intangible Assets | 7 | 6 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ (49) | (45) | |
Marketing-Related and Other Intangible Assets [Member] | |||
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 1 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (1) |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Details 2) $ in Millions | Jul. 05, 2015USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 2 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 5 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 50 |
Finite-Lived Intangible Assets, Future Amortization Expense | $ 73 |
Reserves for Closed Propertie37
Reserves for Closed Properties (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 05, 2015 | Sep. 28, 2014 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 31 | $ 36 |
Additions | 7 | 4 |
Usage | (10) | (11) |
Adjustments | 1 | 2 |
Ending Balance | $ 29 | $ 31 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jul. 05, 2015 | Apr. 12, 2015 | Sep. 28, 2014 | Jul. 06, 2014 | Apr. 13, 2014 | Jan. 18, 2015 | Jan. 19, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | Sep. 28, 2014 | |
Dividends Per Common Share [Abstract] | ||||||||||
Dividends Payable, Date Declared | Jun. 9, 2015 | Mar. 10, 2015 | Sep. 11, 2014 | Jun. 12, 2014 | Feb. 24, 2014 | Nov. 5, 2014 | Nov. 1, 2013 | |||
Dividends declared per common share (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.13 | $ 0.12 | $ 0.39 | $ 0.36 | $ 0.48 |
Dividends Payable, Date of Record | Jul. 2, 2015 | Apr. 10, 2015 | Sep. 26, 2014 | Jul. 3, 2014 | Apr. 11, 2014 | Jan. 16, 2015 | Jan. 17, 2014 | |||
Dividends Payable, Date to be Paid | Jul. 14, 2015 | Apr. 21, 2015 | Oct. 7, 2014 | Jul. 15, 2014 | Apr. 22, 2014 | Jan. 27, 2015 | Jan. 28, 2014 | |||
Dividends, Common Stock, Cash | $ 47 | $ 47 | $ 43 | $ 44 | $ 44 | $ 47 | $ 45 | $ 140 | $ 176 |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 30, 2015 | Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | Sep. 28, 2014 | |
Treasury Stock [Abstract] | ||||||
Treasury Stock, Shares, Acquired | 2.1 | 9.1 | 3.9 | 11.2 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 45.98 | $ 39.45 | $ 48.29 | $ 42.31 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 98 | $ 361 | $ 188 | $ 478 | $ 578 | |
Treasury Stock Reissued During Period, Shares | 2.1 | |||||
Treasury Stock Reissued During Period, Value | $ 90 | |||||
Treasury Stock, Shares | 18.5 | 18.5 | 16.7 | |||
Treasury Stock, Value | $ 809 | $ 809 | $ 711 | |||
Aug. 1, 2014 Share Repurchase Program [Member] | ||||||
Treasury Stock [Abstract] | ||||||
Stock Repurchase Program, Expiration Date | Aug. 1, 2016 | |||||
Stock Repurchase Program, Authorized Amount | 1,000 | $ 1,000 | ||||
Stock Repurchase Program, Amount Utilized For Repurchases | 288 | 288 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 712 | $ 712 | ||||
Subsequent Event [Member] | ||||||
Treasury Stock [Abstract] | ||||||
Treasury Stock, Shares, Acquired | 0.9 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 36.38 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 33 | |||||
Subsequent Event [Member] | Aug. 1, 2014 Share Repurchase Program [Member] | ||||||
Treasury Stock [Abstract] | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 679 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | Sep. 28, 2014 | |
Earnings Per Share Reconciliation [Abstract] | |||||
Net Income | $ 154 | $ 151 | $ 479 | $ 451 | $ 579 |
Weighted Average Number of Shares Outstanding, Basic | 358.5 | 365 | 359.6 | 369.9 | |
Weighted Average Number of Shares Outstanding, Diluted | 360.5 | 367.2 | 362.2 | 372.9 | |
Basic earnings per share (in dollars per share) | $ 0.43 | $ 0.41 | $ 1.33 | $ 1.22 | |
Diluted earnings per share (in dollars per share) | $ 0.43 | $ 0.41 | $ 1.32 | $ 1.21 | |
Potential common shares outstanding [Abstract] | |||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Awards | 2 | 2.2 | 2.6 | 3 |
Earnings per Share (Details 2)
Earnings per Share (Details 2) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13.8 | 13.8 | 9.8 | 7.2 |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Payment Expense | $ 14 | $ 15 | $ 51 | $ 51 |
Share-based Payment, Tax Benefit | (5) | (6) | (20) | (20) |
Allocated Share-based Payment Expense, Net of Tax | 9 | 9 | 31 | 31 |
Cost of Goods Sold and Occupancy Costs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Payment Expense | 1 | 1 | 2 | 2 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Payment Expense | $ 13 | $ 14 | $ 49 | $ 49 |
Share-Based Payments (Details 2
Share-Based Payments (Details 2) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 05, 2015 | Jul. 06, 2014 | Jul. 05, 2015 | Jul. 06, 2014 | Sep. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 32.6 | 32.6 | 37.6 | ||
Allocated Share-based Payment Expense | $ 14 | $ 15 | $ 51 | $ 51 | |
Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4.8 | 4.4 | 5.3 | 5.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.19 | $ 9.68 | |||
Allocated Share-based Payment Expense | $ 13 | $ 14 | $ 48 | $ 48 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 108 | $ 108 | $ 108 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 11.5 | 11.5 | 11.9 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 1 month 10 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 0.1 | 0.2 | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 3 | $ 11 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $ 10 | $ 10 | $ 10 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 3 months 18 days |
Share-Based Payments (Details 3
Share-Based Payments (Details 3) - Stock Option [Member] | 9 Months Ended | |
Jul. 05, 2015 | Jul. 06, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.00% | 0.96% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.20% | 1.16% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 29.73% | 30.61% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 14 days | 3 years 11 months 9 days |
Related Party Transactions (Det
Related Party Transactions (Details) | 9 Months Ended |
Jul. 05, 2015Foundation | |
Related Party Transactions [Abstract] | |
Number of Nonprofit Organizations | 3 |