Document and Entity
Document and Entity - shares | 9 Months Ended | |
Jul. 03, 2016 | Jul. 29, 2016 | |
Document and Entity [Abstract] | ||
Entity Registrant Name | WHOLE FOODS MARKET INC | |
Entity Central Index Key | 865,436 | |
Document Type | 10-Q | |
Entity Filer Category | Large Accelerated Filer | |
Current Fiscal Year End Date | --09-25 | |
Document Period End Date | Jul. 3, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 318,804,485 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 03, 2016 | Sep. 27, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 472 | $ 237 |
Short-term investments - available-for-sale securities | 153 | 155 |
Restricted cash | 123 | 127 |
Accounts receivable | 319 | 218 |
Merchandise inventories | 523 | 500 |
Prepaid expenses and other current assets | 147 | 108 |
Deferred income taxes | 188 | 199 |
Total current assets | 1,925 | 1,544 |
Property and equipment, net of accumulated depreciation and amortization | 3,376 | 3,163 |
Long-term investments - available-for-sale securities | 63 | |
Goodwill | 710 | 710 |
Intangible assets, net of accumulated amortization | 76 | 79 |
Deferred income taxes | 143 | 144 |
Other assets | 45 | 38 |
Total assets | 6,275 | 5,741 |
Current liabilities: | ||
Current installments of long-term debt and capital lease obligations | 3 | 3 |
Accounts payable | 292 | 295 |
Accrued payroll, bonus and other benefits due team members | 409 | 436 |
Dividends payable | 43 | 45 |
Other current liabilities | 577 | 473 |
Total current liabilities | 1,324 | 1,252 |
Long-term debt and capital lease obligations, less current installments | 1,049 | 62 |
Deferred lease liabilities | 626 | 587 |
Other long-term liabilities | 91 | 71 |
Total liabilities | 3,090 | 1,972 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value, 1,200 shares authorized; 377.0 and 377.1 shares issued; 318.8 and 348.9 shares outstanding at 2016 and 2015, respectively | 2,924 | 2,904 |
Common stock in treasury, at cost, 58.2 and 28.2 shares at 2016 and 2015, respectively | (2,014) | (1,124) |
Accumulated other comprehensive loss | (29) | (28) |
Retained earnings | 2,304 | 2,017 |
Total shareholders’ equity | 3,185 | 3,769 |
Total liabilities and shareholders’ equity | $ 6,275 | $ 5,741 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 03, 2016 | Sep. 27, 2015 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 1,200,000,000 | 1,200,000,000 |
Common Stock, Shares, Issued | 377,000,000 | 377,100,000 |
Common Stock, Shares, Outstanding | 318,800,000 | 348,900,000 |
Common Stock, No Par Value | ||
Treasury Stock, Shares | 58,200,000 | 28,200,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | |
Income Statement [Abstract] | ||||
Sales | $ 3,703 | $ 3,632 | $ 12,227 | $ 11,951 |
Cost of goods sold and occupancy costs | 2,417 | 2,339 | 8,010 | 7,721 |
Gross profit | 1,286 | 1,293 | 4,217 | 4,230 |
Selling, general and administrative expenses | 1,057 | 1,032 | 3,458 | 3,392 |
Pre-opening expenses | 18 | 12 | 49 | 53 |
Relocation, store closure and lease termination costs | 2 | 2 | 8 | 12 |
Operating income | 209 | 247 | 702 | 773 |
Interest expense | (12) | (30) | ||
Investment and other income (expense) | (1) | 5 | 8 | 12 |
Income before income taxes | 196 | 252 | 680 | 785 |
Provision for income taxes | 76 | 98 | 261 | 306 |
Net income | $ 120 | $ 154 | $ 419 | $ 479 |
Basic earnings per share (in dollars per share) | $ 0.37 | $ 0.43 | $ 1.27 | $ 1.33 |
Weighted average shares outstanding (in shares) | 320.6 | 358.5 | 328.4 | 359.6 |
Diluted earnings per share (in dollars per share) | $ 0.37 | $ 0.43 | $ 1.27 | $ 1.32 |
Weighted average shares outstanding, diluted basis (in shares) | 321.2 | 360.5 | 329.3 | 362.2 |
Dividends declared per common share (in dollars per share) | $ 0.135 | $ 0.13 | $ 0.405 | $ 0.39 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 120 | $ 154 | $ 419 | $ 479 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (1) | 3 | (1) | (15) |
Other comprehensive income (loss), net of tax | (1) | 3 | (1) | (15) |
Comprehensive income | $ 119 | $ 157 | $ 418 | $ 464 |
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 loss | Retained earnings |
Balances at Sep. 28, 2014 | $ 3,813 | $ 2,863 | $ (711) | $ (7) | $ 1,668 |
Balances (in shares) at Sep. 28, 2014 | 360.4 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 536 | 536 | |||
Other comprehensive loss, net of tax | (21) | (21) | |||
Dividends ($0.405 and $0.52 per common share for the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015, respectively) | (186) | (186) | |||
Issuance of common stock pursuant to team member stock plans | 66 | $ (34) | 100 | ||
Issuance of common stock pursuant to team member stock plans (in shares) | 2.3 | ||||
Purchase of treasury stock | (513) | (513) | |||
Purchase of treasury stock (in shares) | (13.8) | ||||
Tax benefit related to exercise of team member stock options | 11 | $ 11 | |||
Share-based payment expense | 64 | 64 | |||
Other | (1) | (1) | |||
Balances at Sep. 27, 2015 | $ 3,769 | $ 2,904 | (1,124) | (28) | 2,017 |
Balances (in shares) at Sep. 27, 2015 | 348.9 | 348.9 | |||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | $ 419 | 419 | |||
Other comprehensive loss, net of tax | (1) | (1) | |||
Dividends ($0.405 and $0.52 per common share for the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015, respectively) | (131) | (131) | |||
Issuance of common stock pursuant to team member stock plans | 17 | $ (22) | 39 | ||
Issuance of common stock pursuant to team member stock plans (in shares) | 1.1 | ||||
Purchase of treasury stock | $ (929) | (929) | |||
Purchase of treasury stock (in shares) | (31.2) | (31.2) | |||
Tax benefit related to exercise of team member stock options | $ 3 | $ 3 | |||
Share-based payment expense | 39 | 39 | |||
Other | (1) | (1) | |||
Balances at Jul. 03, 2016 | $ 3,185 | $ 2,924 | $ (2,014) | $ (29) | $ 2,304 |
Balances (in shares) at Jul. 03, 2016 | 318.8 | 318.8 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jul. 03, 2016 | Apr. 10, 2016 | Sep. 27, 2015 | Jul. 05, 2015 | Apr. 12, 2015 | Jan. 17, 2016 | Jan. 18, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | Sep. 27, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||
Dividends declared per common share (in dollars per share) | $ 0.135 | $ 0.135 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.135 | $ 0.13 | $ 0.405 | $ 0.39 | $ 0.52 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 03, 2016 | Jul. 05, 2015 | |
Cash flows from operating activities | ||
Net income | $ 419 | $ 479 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 376 | 331 |
Share-based payment expense | 39 | 51 |
LIFO expense | 1 | 3 |
Deferred income tax expense | 16 | 47 |
Excess tax benefit related to exercise of team member stock options | (4) | (10) |
Accretion of premium/discount on marketable securities | 1 | 14 |
Deferred lease liabilities | 31 | 24 |
Other | 7 | 10 |
Net change in current assets and liabilities: | ||
Accounts receivable | (100) | (19) |
Merchandise inventories | (25) | (47) |
Prepaid expenses and other current assets | (39) | (4) |
Accounts payable | (2) | 16 |
Accrued payroll, bonus and other benefits due team members | (27) | 26 |
Other current liabilities | 57 | 72 |
Net change in other long-term liabilities | 14 | 4 |
Net cash provided by operating activities | 764 | 997 |
Cash flows from investing activities | ||
Development costs of new locations | (295) | (411) |
Other property and equipment expenditures | (226) | (268) |
Purchases of available-for-sale securities | (311) | (458) |
Sales and maturities of available-for-sale securities | 375 | 497 |
Decrease (increase) in restricted cash | 3 | (19) |
Payment for purchase of acquired entities, net of cash acquired | (11) | (4) |
Other investing activities | (12) | (8) |
Net cash used in investing activities | (477) | (671) |
Cash flows from financing activities | ||
Purchases of treasury stock | (929) | (188) |
Common stock dividends paid | (133) | (137) |
Issuance of common stock | 17 | 61 |
Excess tax benefit related to exercise of team member stock options | 4 | 10 |
Proceeds from long-term borrowings | 999 | |
Proceeds from revolving line of credit | 300 | |
Payments on long-term debt and capital lease obligations | (306) | |
Other financing activities | (9) | (1) |
Net cash used in financing activities | (57) | (255) |
Effect of exchange rate changes on cash and cash equivalents | 5 | (4) |
Net change in cash and cash equivalents | 235 | 67 |
Cash and cash equivalents at beginning of period | 237 | 190 |
Cash and cash equivalents at end of period | 472 | 257 |
Supplemental disclosure of cash flow information: | ||
Federal and state income taxes paid | 357 | $ 263 |
Interest paid | $ 27 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 03, 2016 | |
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 27, 2015 . 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 2016 and 2015 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 3, July 5, July 3, July 5, Sales: United States 96.9 % 96.9 % 97.1 % 96.9 % Canada and United Kingdom 3.1 3.1 2.9 3.1 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 3, September 27, Long-lived assets, net: United States 97.5 % 97.4 % Canada and United Kingdom 2.5 2.6 Total long-lived assets, net 100.0 % 100.0 % |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 03, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Recent Accounting Pronouncements Effective September 28, 2015, the Company early adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” which amends the Accounting Standards Codification Subtopic 835-30. The amendments, which require that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, were adopted on a retrospective basis. The adoption of these amendments did not have a significant effect on the Company’s financial statements. The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted. Early adoption is permitted for all updates unless stated. Standard Description Effective Date Effect on financial statements and other significant matters ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments(Topic 326) The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. First quarter of fiscal year ending September 29, 2021 We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (Topic 718) The amendments aim to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, and certain classifications on the statement of cash flows. The amendments should be applied on either a prospective, retrospective, or modified-retrospective basis depending on the subtopic. 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. ASU No. 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606) The amendments, which do not change the core principle of the guidance in Topic 606, clarify the implementation guidance on principal versus agent considerations, including how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments may be applied on either a full or modified retrospective basis. First quarter of 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. ASU No. 2016-07 Simplifying the Transition to the Equity Method of Accounting (Topic 323) The amendments eliminate the requirement to retroactively apply the equity method of accounting when an investment qualifies for the use of the equity method due to an increase in the level of ownership interest or degree of influence. The amendments should be applied on a prospective basis. First quarter of fiscal year ending September 30, 2018 We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. ASU No. 2016-04 Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force) (Subtopic 405-20) The amendments require entities to recognize liabilities related to the sale of prepaid stored-value products redeemable for goods, services or cash as financial liabilities in the scope of ASC 405. Additionally, the new guidance amends ASC 405-20 to include a narrow scope exception requiring entities to recognize breakage for these liabilities in a way that is consistent with how gift card breakage will be recognized under the new revenue recognition standard. The amendments may be applied on either a full or modified retrospective basis. First quarter of 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. Standard Description Effective Date Effect on financial statements and other significant matters ASU No. 2016-02 Leases (Topic 842) The amendments require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. Accounting guidance for lessors is largely unchanged. The amendments should be applied on a modified retrospective basis. First quarter of fiscal year ending September 27, 2020 We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet in year of adoption. Early adoption is permitted for only certain amendments of the update. First quarter of 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. ASU No. 2015-17 Balance Sheet Classification of Deferred Taxes (Topic 740) The amendments simplify the presentation of deferred income taxes by requiring that all deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. The amendments may be applied on either a prospective or retrospective basis. First quarter of fiscal year ending September 30, 2018 We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. ASU No. 2015-16 Simplifying the Accounting for Measurement-Period Adjustments (Topic 805) The amendments require that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined and eliminate the requirement to retrospectively revise prior periods. Additionally, an acquirer should record in the same period the effects on earnings of any changes in the provisional accounts, calculated as if the accounting had been completed at the acquisition date. The amendments should be applied on a prospective basis. 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. ASU No. 2015-11 Simplifying the Measurement of Inventory (Topic 330) 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 should be applied on a prospective basis. First quarter of fiscal year ending September 30, 2018 We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. ASU No. 2015-05 Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (Topic 350) 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 may be applied on either a prospective or retrospective basis. 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. Standard Description Effective Date Effect on financial statements and other significant matters ASU No. 2015-02 Amendments to the Consolidation Analysis (Topic 810) The amendments revise the consolidation analysis related to limited partnerships and similar legal entities, variable interest entities, and certain investment funds. The amendments may be applied on either a full or modified retrospective basis. 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. ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) 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 may be applied on either a full or modified retrospective basis. First quarter of fiscal year ending September 29, 2019 We are currently evaluating the timing, method, and impact that the adoption of these provisions will have on the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 03, 2016 | |
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. Equity interests measured at fair value are based on quoted prices for similar assets in active markets. 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 3, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 165 $ — $ — $ 165 Commercial paper — 46 — 46 Municipal bonds — 18 — 18 Marketable securities - available-for-sale: Municipal bonds — 153 — 153 Other assets: Equity interests — 7 — 7 Total $ 165 $ 224 $ — $ 389 September 27, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 32 $ — $ — $ 32 Marketable securities - available-for-sale: Asset-backed securities — 13 — 13 Certificates of deposit — 2 — 2 Corporate bonds — 30 — 30 Municipal bonds — 173 — 173 Total $ 32 $ 218 $ — $ 250 The estimated fair value of the Company’s long-term debt is included in Note 8 “Long-Term Debt.” |
Investments
Investments | 9 Months Ended |
Jul. 03, 2016 | |
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 3, September 27, Short-term marketable securities - available-for-sale: Asset-backed securities $ — $ 10 Certificates of deposit — 2 Corporate bonds — 15 Municipal bonds 153 128 Total short-term marketable securities $ 153 $ 155 Long-term marketable securities - available-for-sale: Asset-backed securities $ — $ 3 Corporate bonds — 15 Municipal bonds — 45 Total long-term marketable securities $ — $ 63 Gross unrealized holding gains and losses were not material at July 3, 2016 or September 27, 2015 . There were no available-for-sale securities in unrealized loss position at July 3, 2016 . Available-for-sale securities totaling approximately $58 million were in unrealized loss positions at September 27, 2015 . The aggregate value of available-for-sale securities in a continuous unrealized loss position for greater than 12 months was not material at September 27, 2015 . The Company did not recognize any other-than-temporary impairments during the forty weeks ended July 3, 2016 or fiscal year ended September 27, 2015 . The average effective maturity of the Company’s short-term available-for-sale securities was less than one month at July 3, 2016 and approximately seven months at September 27, 2015 . The average effective maturity of the Company’s long-term available-for-sale securities was approximately 16 months at September 27, 2015 . At July 3, 2016 and September 27, 2015 , the Company held approximately $14 million in equity interests which were accounted for using the cost method of accounting. In addition, the Company held approximately $7 million in equity interests which are measured at fair value at July 3, 2016 . Equity interests accounted for using the equity method were not material at July 3, 2016 or September 27, 2015 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jul. 03, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets There were no additions or adjustments to goodwill during the forty weeks ended July 3, 2016 . Additions and adjustments to goodwill were not material during the forty weeks ended July 5, 2015 . Additions of other intangible assets were not material during the forty weeks ended July 3, 2016 or the same period of the prior fiscal year. The components of intangible assets as of the dates indicated were as follows (in millions): July 3, 2016 September 27, 2015 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Definite-lived contract-based $ 122 $ (54 ) $ 122 $ (50 ) Indefinite-lived contract-based 8 7 Total $ 130 $ (54 ) $ 129 $ (50 ) Amortization expense associated with intangible assets was not material during the twelve and forty weeks ended July 3, 2016 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 2016 $ 1 Fiscal year 2017 6 Fiscal year 2018 5 Fiscal year 2019 5 Fiscal year 2020 5 Future fiscal years 46 Total $ 68 |
One-Time Termination Benefits
One-Time Termination Benefits | 9 Months Ended |
Jul. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | One-Time Termination Benefits During fiscal year 2015 , the Company communicated to certain team members its plan of termination to reduce a number of positions through the first quarter of fiscal year 2016 as part of its ongoing commitment to lower prices for its customers and invest in technology upgrades while improving its cost structure. The Company recorded one-time termination benefits in the fourth quarter of fiscal year 2015 totaling $34 million , included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations. The plan was substantially completed during the first quarter of fiscal year 2016 , and adjustments to the related restructuring charges were not material. |
Reserves for Closed Properties
Reserves for Closed Properties | 9 Months Ended |
Jul. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Reserves for Closed Properties The following table provides a summary of activity in reserves for closed properties during the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015 (in millions): July 3, September 27, Beginning balance $ 28 $ 31 Additions 4 9 Usage (8 ) (13 ) Adjustments 2 1 Ending balance $ 26 $ 28 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | Long-Term Debt Credit Agreement On November 2, 2015 , the Company entered into a credit facility (the “Credit Agreement”) that provides for an unsecured revolving credit facility in the aggregate principal amount of $500 million , which may be increased from time to time by up to $250 million in the aggregate pursuant to an expansion feature set forth in the Credit Agreement. The Credit Agreement also provides for a letter of credit subfacility of up to $250 million and a swingline subfacility of up to $50 million . The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate, on November 2, 2020 . Under the Credit Agreement, Eurodollar borrowings bear interest at a variable rate equal to an adjusted London interbank offered rate (“Adjusted LIBO Rate”) for a one, two, three, or six month interest period , plus a margin between 1.125% to 1.750% . Other borrowings, including swingline loans, bear interest at a variable rate equal to the greatest of the Prime Rate , the Federal Funds Rate plus 0.5% , and the Adjusted LIBO Rate for a one-month interest period plus 1% , in each case plus a margin of 0.125% to 0.750% . For all borrowings, the applicable margin is based on the Company’s leverage ratio. Additionally, the Company will pay a commitment fee ranging from 0.125% to 0.300% , based on the Company’s leverage ratio, on the average daily amount of the undrawn commitments under the Credit Agreement payable quarterly . The Credit Agreement includes customary representations and warranties, certain affirmative covenants including the maintenance of certain financial ratios, certain negative covenants including limitations on additional indebtedness and payments as defined in the agreement, and events of default. At July 3, 2016 , we were in compliance with all applicable debt covenants. Subject to certain exceptions, obligations under the Credit Agreement are guaranteed by certain of the Company’s material domestic subsidiaries. During the first quarter of fiscal year 2016 , the Company borrowed and repaid $300 million under the Credit Agreement. At July 3, 2016 , the Company had no amounts outstanding. Commitment fees paid on undrawn amounts were not material during the forty weeks ended July 3, 2016 . Senior Notes On December 3, 2015 , the Company completed the offering of $ 1.0 billion of 5.2% senior notes due 2025 (the “Notes”). The Notes were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws. The Notes bear interest at a fixed rate equal to 5.2% per year, payable semiannually , and mature on December 3, 2025 . The interest rate payable on the Notes is subject to adjustment upon the occurrence of certain credit rating events described in the indenture. The Notes are guaranteed on an unsecured, unsubordinated basis by certain subsidiaries of the Company. The Notes are subject to customary covenants restricting the Company’s and its subsidiaries’ ability, subject to certain exceptions, to incur debt secured by liens or to enter into sale and leaseback transactions and restricting the Company’s ability to merge or consolidate with another entity or sell substantially all of its assets to another person. Prior to September 3, 2025, the Company may redeem the Notes at the Company’s option at any time either in whole or in part for a redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed plus the applicable make-whole premium, plus accrued and unpaid interest thereon. On or after September 3, 2025, the Company may redeem the Notes at the Company’s option at any time either in whole or in part for a redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed, plus accrued and unpaid interest thereon. The components of long-term debt as of the dates indicated were as follows (in millions): July 3, September 27, 5.2% senior notes due 2025 $ 1,000 $ — Less: unamortized discount and debt issuance costs related to senior notes (7 ) — Carrying value of senior notes 993 — Capital lease obligations 59 65 Total long-term debt and capital lease obligations 1,052 65 Less: current installments (3 ) (3 ) Total long-term debt and capital lease obligations, less current installments $ 1,049 $ 62 The Notes are recorded at cost net of discount and issuance costs. The effective interest rate of the Notes, which includes interest on the Notes and amortization of discount and issuance costs, is approximately 5.28% . The estimated fair value of the Notes at July 3, 2016 , based on observable market prices (Level 2), exceeded the carrying value by approximately $80 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income taxes resulted in an effective tax rate of approximately 39.0% and 38.4% for the twelve and forty weeks ended July 3, 2016 , respectively, compared to approximately 39.0% for each of the same periods of the prior fiscal year. The lower effective tax rate for the forty weeks ended July 3, 2016 compared to the prior fiscal year is due to the recognition of an environmental tax credit related to the development of a new store. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jul. 03, 2016 | |
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 2016 to date and fiscal year 2015 (in millions, except per share amounts): Date of declaration Dividend per common share Date of record Date of payment Total amount Fiscal year 2016: November 4, 2015 $ 0.135 January 15, 2016 January 26, 2016 $ 44 March 9, 2016 0.135 April 8, 2016 April 19, 2016 44 June 7, 2016 (1) 0.135 July 1, 2016 July 12, 2016 43 Fiscal year 2015: November 5, 2014 $ 0.130 January 16, 2015 January 27, 2015 $ 47 March 10, 2015 0.130 April 10, 2015 April 21, 2015 47 June 9, 2015 0.130 July 2, 2015 July 14, 2015 47 September 15, 2015 0.130 October 2, 2015 October 13, 2015 45 (1) Dividend accrued at July 3, 2016 Treasury Stock On November 4, 2015, a new share repurchase program was authorized pursuant to the authority of the Company’s Board of Directors (the “Board”) whereby the Company may make up to $1.0 billion in stock repurchases of outstanding shares of the common stock of the Company. The following table outlines the share repurchase programs authorized by the Board, and the related repurchase activity and available authorization as of July 3, 2016 (in millions): Effective date Expiration date Amount authorized Cost of repurchases Authorization available August 1, 2014 August 1, 2016 $ 1,000 $ 1,000 $ — November 4, 2015 Not applicable 1,000 542 458 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 current repurchase program does not have an expiration date and 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 the program may be suspended or discontinued at any time at the Company’s discretion. Share repurchase activity for the periods indicated was as follows (in millions, except per share amounts): Twelve weeks ended Forty weeks ended July 3, July 5, July 3, July 5, Number of common shares acquired 6.5 2.1 31.2 3.9 Average price per common share acquired $ 30.01 $ 45.98 $ 29.85 $ 48.29 Total cost of common shares acquired $ 195 $ 98 $ 929 $ 188 The Company reissued approximately 1.1 million treasury shares at cost of approximately $39 million and 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 during the forty weeks ended July 3, 2016 and July 5, 2015 , respectively. At July 3, 2016 and September 27, 2015 , the Company held in treasury approximately 58.2 million shares and 28.2 million shares, respectively, totaling approximately $2.0 billion and $1.1 billion , respectively. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jul. 03, 2016 | |
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 3, July 5, July 3, July 5, Net income (numerator for basic and diluted earnings per share) $ 120 $ 154 $ 419 $ 479 Weighted average common shares outstanding (denominator for basic earnings per share) 320.6 358.5 328.4 359.6 Incremental common shares attributable to dilutive effect of share-based awards 0.6 2.0 0.9 2.6 Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share) 321.2 360.5 329.3 362.2 Basic earnings per share $ 0.37 $ 0.43 $ 1.27 $ 1.33 Diluted earnings per share $ 0.37 $ 0.43 $ 1.27 $ 1.32 The computation of diluted earnings per share for the twelve and forty weeks ended July 3, 2016 does not include share-based awards to purchase approximately 23.6 million shares and 20.8 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 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. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Jul. 03, 2016 | |
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, primarily included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations, totaled approximately $11 million and $39 million , respectively, during the twelve and forty weeks ended July 3, 2016 , and totaled approximately $14 million and $51 million , respectively, for the same periods of the prior fiscal year. At July 3, 2016 and September 27, 2015 , approximately 29.8 million shares and 32.9 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 3, 2016 , the Company awarded approximately 4.9 million stock options and 5.0 million stock options, respectively, pursuant to the Whole Foods Market 2009 Stock Incentive Plan compared to approximately 4.8 million stock options and 5.3 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 3, 2016 and July 5, 2015 was $6.71 and $10.19 , respectively. The fair value of stock option grants during the forty weeks ended July 3, 2016 and July 5, 2015 has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2016 2015 Expected dividend yield 1.73 % 1.00 % Risk-free interest rate 1.08 % 1.20 % Expected volatility 31.30 % 29.73 % Expected life, in years 4.05 4.04 Total share-based payment expense related to vesting stock options totaled approximately $10 million and $37 million for the twelve and forty weeks ended July 3, 2016 , respectively, and approximately $13 million and $48 million , respectively, for the same periods of the prior fiscal year. At July 3, 2016 and September 27, 2015 , there was approximately $82 million and $95 million of unrecognized share-based payment expense, respectively, related to unvested stock options, net of estimated forfeitures, related to approximately 10.5 million shares and 11.5 million shares, respectively. The Company anticipates this expense to be recognized over a weighted average period of 3.1 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 03, 2016 | |
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. From time to time we are a party to legal proceedings including matters involving shareholder claims, personnel and employment issues, personal injury, product liability, protecting our intellectual property, regulatory practices, acquisitions and other proceedings arising in the ordinary course of business. These matters have not resulted in any material losses to date. Certain litigation cases have been certified as class or collective actions and may seek substantial damages. 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, and is not currently a party to any legal proceeding that management believes could have a material adverse effect on our results of operations. 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. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 03, 2016 | |
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 2016 and 2015 are 52 -week years. |
New Accounting Pronouncements, Policy [Policy Text Block] | The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted. Early adoption is permitted for all updates unless stated. Standard Description Effective Date Effect on financial statements and other significant matters ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments(Topic 326) The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. First quarter of fiscal year ending September 29, 2021 We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (Topic 718) The amendments aim to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, and certain classifications on the statement of cash flows. The amendments should be applied on either a prospective, retrospective, or modified-retrospective basis depending on the subtopic. 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. ASU No. 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606) The amendments, which do not change the core principle of the guidance in Topic 606, clarify the implementation guidance on principal versus agent considerations, including how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments may be applied on either a full or modified retrospective basis. First quarter of 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. ASU No. 2016-07 Simplifying the Transition to the Equity Method of Accounting (Topic 323) The amendments eliminate the requirement to retroactively apply the equity method of accounting when an investment qualifies for the use of the equity method due to an increase in the level of ownership interest or degree of influence. The amendments should be applied on a prospective basis. First quarter of fiscal year ending September 30, 2018 We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. ASU No. 2016-04 Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force) (Subtopic 405-20) The amendments require entities to recognize liabilities related to the sale of prepaid stored-value products redeemable for goods, services or cash as financial liabilities in the scope of ASC 405. Additionally, the new guidance amends ASC 405-20 to include a narrow scope exception requiring entities to recognize breakage for these liabilities in a way that is consistent with how gift card breakage will be recognized under the new revenue recognition standard. The amendments may be applied on either a full or modified retrospective basis. First quarter of 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. Standard Description Effective Date Effect on financial statements and other significant matters ASU No. 2016-02 Leases (Topic 842) The amendments require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. Accounting guidance for lessors is largely unchanged. The amendments should be applied on a modified retrospective basis. First quarter of fiscal year ending September 27, 2020 We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements. ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet in year of adoption. Early adoption is permitted for only certain amendments of the update. First quarter of 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. ASU No. 2015-17 Balance Sheet Classification of Deferred Taxes (Topic 740) The amendments simplify the presentation of deferred income taxes by requiring that all deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. The amendments may be applied on either a prospective or retrospective basis. First quarter of fiscal year ending September 30, 2018 We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. ASU No. 2015-16 Simplifying the Accounting for Measurement-Period Adjustments (Topic 805) The amendments require that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined and eliminate the requirement to retrospectively revise prior periods. Additionally, an acquirer should record in the same period the effects on earnings of any changes in the provisional accounts, calculated as if the accounting had been completed at the acquisition date. The amendments should be applied on a prospective basis. 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. ASU No. 2015-11 Simplifying the Measurement of Inventory (Topic 330) 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 should be applied on a prospective basis. First quarter of fiscal year ending September 30, 2018 We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. ASU No. 2015-05 Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (Topic 350) 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 may be applied on either a prospective or retrospective basis. 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. Standard Description Effective Date Effect on financial statements and other significant matters ASU No. 2015-02 Amendments to the Consolidation Analysis (Topic 810) The amendments revise the consolidation analysis related to limited partnerships and similar legal entities, variable interest entities, and certain investment funds. The amendments may be applied on either a full or modified retrospective basis. 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. ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) 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 may be applied on either a full or modified retrospective basis. First quarter of fiscal year ending September 29, 2019 We are currently evaluating the timing, method, and impact that the adoption of these provisions will have on the Company’s consolidated financial statements. |
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. 03, 2016 | |
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 3, July 5, July 3, July 5, Sales: United States 96.9 % 96.9 % 97.1 % 96.9 % Canada and United Kingdom 3.1 3.1 2.9 3.1 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 3, September 27, Long-lived assets, net: United States 97.5 % 97.4 % Canada and United Kingdom 2.5 2.6 Total long-lived assets, net 100.0 % 100.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
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 3, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 165 $ — $ — $ 165 Commercial paper — 46 — 46 Municipal bonds — 18 — 18 Marketable securities - available-for-sale: Municipal bonds — 153 — 153 Other assets: Equity interests — 7 — 7 Total $ 165 $ 224 $ — $ 389 September 27, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 32 $ — $ — $ 32 Marketable securities - available-for-sale: Asset-backed securities — 13 — 13 Certificates of deposit — 2 — 2 Corporate bonds — 30 — 30 Municipal bonds — 173 — 173 Total $ 32 $ 218 $ — $ 250 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
Investments [Abstract] | |
Marketable Securities [Table Text Block] | The Company held the following investments at fair value as of the dates indicated (in millions): July 3, September 27, Short-term marketable securities - available-for-sale: Asset-backed securities $ — $ 10 Certificates of deposit — 2 Corporate bonds — 15 Municipal bonds 153 128 Total short-term marketable securities $ 153 $ 155 Long-term marketable securities - available-for-sale: Asset-backed securities $ — $ 3 Corporate bonds — 15 Municipal bonds — 45 Total long-term marketable securities $ — $ 63 |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
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 3, 2016 September 27, 2015 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Definite-lived contract-based $ 122 $ (54 ) $ 122 $ (50 ) Indefinite-lived contract-based 8 7 Total $ 130 $ (54 ) $ 129 $ (50 ) |
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 2016 $ 1 Fiscal year 2017 6 Fiscal year 2018 5 Fiscal year 2019 5 Fiscal year 2020 5 Future fiscal years 46 Total $ 68 |
Reserves for Closed Properties
Reserves for Closed Properties (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table provides a summary of activity in reserves for closed properties during the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015 (in millions): July 3, September 27, Beginning balance $ 28 $ 31 Additions 4 9 Usage (8 ) (13 ) Adjustments 2 1 Ending balance $ 26 $ 28 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The components of long-term debt as of the dates indicated were as follows (in millions): July 3, September 27, 5.2% senior notes due 2025 $ 1,000 $ — Less: unamortized discount and debt issuance costs related to senior notes (7 ) — Carrying value of senior notes 993 — Capital lease obligations 59 65 Total long-term debt and capital lease obligations 1,052 65 Less: current installments (3 ) (3 ) Total long-term debt and capital lease obligations, less current installments $ 1,049 $ 62 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | The following table provides a summary of dividends declared per common share during fiscal year 2016 to date and fiscal year 2015 (in millions, except per share amounts): Date of declaration Dividend per common share Date of record Date of payment Total amount Fiscal year 2016: November 4, 2015 $ 0.135 January 15, 2016 January 26, 2016 $ 44 March 9, 2016 0.135 April 8, 2016 April 19, 2016 44 June 7, 2016 (1) 0.135 July 1, 2016 July 12, 2016 43 Fiscal year 2015: November 5, 2014 $ 0.130 January 16, 2015 January 27, 2015 $ 47 March 10, 2015 0.130 April 10, 2015 April 21, 2015 47 June 9, 2015 0.130 July 2, 2015 July 14, 2015 47 September 15, 2015 0.130 October 2, 2015 October 13, 2015 45 (1) Dividend accrued at July 3, 2016 |
Schedule of Share Repurchase Programs [Table Text Block] | The following table outlines the share repurchase programs authorized by the Board, and the related repurchase activity and available authorization as of July 3, 2016 (in millions): Effective date Expiration date Amount authorized Cost of repurchases Authorization available August 1, 2014 August 1, 2016 $ 1,000 $ 1,000 $ — November 4, 2015 Not applicable 1,000 542 458 |
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 3, July 5, July 3, July 5, Number of common shares acquired 6.5 2.1 31.2 3.9 Average price per common share acquired $ 30.01 $ 45.98 $ 29.85 $ 48.29 Total cost of common shares acquired $ 195 $ 98 $ 929 $ 188 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
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 3, July 5, July 3, July 5, Net income (numerator for basic and diluted earnings per share) $ 120 $ 154 $ 419 $ 479 Weighted average common shares outstanding (denominator for basic earnings per share) 320.6 358.5 328.4 359.6 Incremental common shares attributable to dilutive effect of share-based awards 0.6 2.0 0.9 2.6 Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share) 321.2 360.5 329.3 362.2 Basic earnings per share $ 0.37 $ 0.43 $ 1.27 $ 1.33 Diluted earnings per share $ 0.37 $ 0.43 $ 1.27 $ 1.32 |
Share-Based Payments Schedule o
Share-Based Payments Schedule of Share-based Payments (Tables) | 9 Months Ended |
Jul. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 3, 2016 and July 5, 2015 has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2016 2015 Expected dividend yield 1.73 % 1.00 % Risk-free interest rate 1.08 % 1.20 % Expected volatility 31.30 % 29.73 % Expected life, in years 4.05 4.04 |
Basis of Presentation (Percenta
Basis of Presentation (Percentage Sales by Geographic Area) (Details) | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | |
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% | 96.90% | 97.10% | 96.90% |
Canada and United Kingdom [Member] | ||||
Percentage sales by geographic area | ||||
Percentage of Total Sales | 3.10% | 3.10% | 2.90% | 3.10% |
Basis of Presentation (Percen33
Basis of Presentation (Percentage of Net Long-Lived Assets by Geographic Area) (Details) | Jul. 03, 2016 | Sep. 27, 2015 |
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 | 97.50% | 97.40% |
Canada and United Kingdom [Member] | ||
Percentage net long-lived assets by geographic area | ||
Percentage of Total Net Long-Lived Assets | 2.50% | 2.60% |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - Segment | 9 Months Ended | 12 Months Ended |
Jul. 03, 2016 | Sep. 27, 2015 | |
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 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy) (Details) - Fair value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jul. 03, 2016 | Sep. 27, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Total | $ 389 | $ 250 |
Level 1 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 165 | 32 |
Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 224 | 218 |
Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents, Fair Value Disclosure | 165 | 32 |
Money Market Funds [Member] | Level 1 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents, Fair Value Disclosure | 165 | 32 |
Commercial Paper [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents, Fair Value Disclosure | 46 | |
Commercial Paper [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents, Fair Value Disclosure | 46 | |
Asset-backed Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 13 | |
Asset-backed Securities [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 13 | |
Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 2 | |
Certificates of Deposit [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 2 | |
Corporate Debt Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 30 | |
Corporate Debt Securities [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 30 | |
Municipal Notes Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents, Fair Value Disclosure | 18 | |
Marketable Securities - Available-for-sale | 153 | 173 |
Municipal Notes Bonds [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents, Fair Value Disclosure | 18 | |
Marketable Securities - Available-for-sale | 153 | $ 173 |
Equity Interests [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other Assets, Fair Value Disclosure | 7 | |
Equity Interests [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other Assets, Fair Value Disclosure | $ 7 |
Investments (Investments at Fai
Investments (Investments at Fair Value) (Details) - USD ($) $ in Millions | Jul. 03, 2016 | Sep. 27, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | $ 153 | $ 155 |
Available-for-sale Securities, Noncurrent | 63 | |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 10 | |
Available-for-sale Securities, Noncurrent | 3 | |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 2 | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 15 | |
Available-for-sale Securities, Noncurrent | 15 | |
Municipal Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | $ 153 | 128 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Noncurrent | $ 45 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 03, 2016 | Sep. 27, 2015 | |
Investments [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 0 | $ 58 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | |
Short-term Investments Average Effective Maturity Period (in months), Less Than and Approximately, Respectively | 1 month | 7 months |
Long-term Investments Average Effective Maturity Period (in months) | 16 months | |
Cost Method Investments | $ 14 | $ 14 |
Equity Interests at Fair Value | $ 7 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions | Jul. 03, 2016 | Sep. 27, 2015 |
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | $ 130 | $ 129 |
Finite-Lived Intangible Assets, Accumulated Amortization | (54) | (50) |
Contract-Based Intangible Assets [Member] | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 122 | 122 |
Finite-Lived Intangible Assets, Accumulated Amortization | (54) | (50) |
Contract-Based Intangible Assets [Member] | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | $ 8 | $ 7 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Future Amortization Expense) (Details) $ in Millions | Jul. 03, 2016USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 1 |
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 | 46 |
Finite-Lived Intangible Assets, Future Amortization Expense | $ 68 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Narrative) (Details) $ in Millions | 9 Months Ended |
Jul. 03, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Additions | $ 0 |
Goodwill, Adjustments | $ 0 |
One-Time Termination Benefits (
One-Time Termination Benefits (Narrative) (Details) $ in Millions | 3 Months Ended |
Sep. 27, 2015USD ($) | |
Selling, General and Administrative Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Incurred Cost | $ 34 |
Reserves for Closed Propertie42
Reserves for Closed Properties (Reserves for Closed Properties) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 03, 2016 | Sep. 27, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 28 | $ 31 |
Additions | 4 | 9 |
Usage | (8) | (13) |
Adjustments | 2 | 1 |
Ending Balance | $ 26 | $ 28 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | Jul. 03, 2016 | Sep. 27, 2015 |
Debt Instrument [Line Items] | ||
Total Long-Term Debt and Capital Lease Obligations | $ 1,052 | $ 65 |
Less: Current Installments | (3) | (3) |
Total Long-Term Debt and Capital Lease Obligations, Less Current Installments | 1,049 | 62 |
Unsecured Debt [Member] | 5.2% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
5.2% Senior Notes due 2025 | 1,000 | |
Less: Unamortized Discount and Debt Issuance Costs Related to Senior Notes | (7) | |
Carrying Value of Senior Notes | 993 | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Capital Lease Obligations | $ 59 | $ 65 |
Long-Term Debt (Credit Agreemen
Long-Term Debt (Credit Agreement) (Narrative) (Details) - USD ($) $ in Millions | 4 Months Ended | 9 Months Ended |
Jan. 17, 2016 | Jul. 03, 2016 | |
Line of Credit Facility [Line Items] | ||
Proceeds from Revolving Line of Credit | $ 300 | $ 300 |
Repayments of Revolving Line of Credit | $ 300 | |
Revolving Line of Credit | $ 0 | |
Unsecured Debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Initiation Date | Nov. 2, 2015 | |
Line of Credit Facility, Expiration Date | Nov. 2, 2020 | |
Unsecured Debt [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | |
Conditional Additional Borrowing Capacity Under Line of Credit Facility | $ 250 | |
Line of Credit Facility, Frequency of Commitment Fee Payment | quarterly | |
Unsecured Debt [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | |
Unsecured Debt [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | |
Unsecured Debt [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Conditional Additional Borrowing Capacity Under Line of Credit Facility | $ 250 | |
Unsecured Debt [Member] | Swingline Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Conditional Additional Borrowing Capacity Under Line of Credit Facility | $ 50 | |
Unsecured Debt [Member] | Eurodollar [Member] | Adjusted LIBO Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | adjusted London interbank offered rate (“Adjusted LIBO Rate”) for a one, two, three, or six month interest period | |
Unsecured Debt [Member] | Eurodollar [Member] | Minimum [Member] | Adjusted LIBO Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | |
Unsecured Debt [Member] | Eurodollar [Member] | Maximum [Member] | Adjusted LIBO Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Unsecured Debt [Member] | Non Eurodollar Borrowings [Member] | Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | Prime Rate | |
Unsecured Debt [Member] | Non Eurodollar Borrowings [Member] | Federal Funds Rate plus 0.5% [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | Federal Funds Rate plus 0.5% | |
Unsecured Debt [Member] | Non Eurodollar Borrowings [Member] | Adjusted LIBO Rate for a one-month interest period plus 1% [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | Adjusted LIBO Rate for a one-month interest period plus 1% | |
Unsecured Debt [Member] | Non Eurodollar Borrowings [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | |
Unsecured Debt [Member] | Non Eurodollar Borrowings [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Long-Term Debt (Senior Notes) (
Long-Term Debt (Senior Notes) (Narrative) (Details) $ in Millions | 9 Months Ended |
Jul. 03, 2016USD ($) | |
Unsecured Debt [Member] | 5.2% Senior Notes due 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Issuance Date | Dec. 3, 2015 |
Debt Instrument, Face Amount | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.20% |
Debt Instrument, Frequency of Interest Payment | semiannually |
Debt Instrument, Maturity Date | Dec. 3, 2025 |
Debt Instrument, Interest Rate During Period | 5.28% |
Fair Value, Debt Instrument, Fair Value Exceeded Carrying Value | $ 80 |
Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Period, Start Date | Dec. 3, 2015 |
Debt Instrument, Redemption Period, End Date | Sep. 2, 2025 |
Debt Instrument, Redemption, Description | Prior to September 3, 2025, the Company may redeem the Notes at the Company’s option at any time either in whole or in part for a redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed plus the applicable make-whole premium, plus accrued and unpaid interest thereon. |
Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Period, Start Date | Sep. 3, 2025 |
Debt Instrument, Redemption Period, End Date | Dec. 3, 2025 |
Debt Instrument, Redemption, Description | On or after September 3, 2025, the Company may redeem the Notes at the Company’s option at any time either in whole or in part for a redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed, plus accrued and unpaid interest thereon. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective Tax Rate, Percent | 39.00% | 39.00% | 38.40% | 39.00% |
Shareholders' Equity (Dividends
Shareholders' Equity (Dividends Declared per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jul. 03, 2016 | Apr. 10, 2016 | Sep. 27, 2015 | Jul. 05, 2015 | Apr. 12, 2015 | Jan. 17, 2016 | Jan. 18, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | Sep. 27, 2015 | ||
Dividends Per Common Share [Abstract] | |||||||||||
Dividends Payable, Date Declared | Jun. 7, 2016 | Mar. 9, 2016 | Sep. 15, 2015 | Jun. 9, 2015 | Mar. 10, 2015 | Nov. 4, 2015 | Nov. 5, 2014 | ||||
Dividends declared per common share (in dollars per share) | $ 0.135 | $ 0.135 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.135 | $ 0.13 | $ 0.405 | $ 0.39 | $ 0.52 | |
Dividends Payable, Date of Record | Jul. 1, 2016 | Apr. 8, 2016 | Oct. 2, 2015 | Jul. 2, 2015 | Apr. 10, 2015 | Jan. 15, 2016 | Jan. 16, 2015 | ||||
Dividends Payable, Date to be Paid | Jul. 12, 2016 | Apr. 19, 2016 | Oct. 13, 2015 | Jul. 14, 2015 | Apr. 21, 2015 | Jan. 26, 2016 | Jan. 27, 2015 | ||||
Dividends, Common Stock, Cash | $ 43 | [1] | $ 44 | $ 45 | $ 47 | $ 47 | $ 44 | $ 47 | $ 131 | $ 186 | |
[1] | Dividend accrued at July 3, 2016 |
Shareholders' Equity (Share Rep
Shareholders' Equity (Share Repurchase Programs) (Details) | 9 Months Ended |
Jul. 03, 2016USD ($) | |
Aug. 1, 2014 Share Repurchase Program [Member] | |
Stock Repurchase Program Expiration Date | Aug. 1, 2016 |
Stock Repurchase Program, Authorized Amount | $ 1,000,000,000 |
Stock Repurchase Program, Amount Utilized For Repurchases | 1,000,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 |
Nov. 4, 2015 Share Repurchase Program [Member] | |
Stock Repurchase Program, Authorized Amount | 1,000,000,000 |
Stock Repurchase Program, Amount Utilized For Repurchases | 542,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 458,000,000 |
Shareholders' Equity (Share R49
Shareholders' Equity (Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | Sep. 27, 2015 | |
Equity [Abstract] | |||||
Treasury Stock, Shares, Acquired | 6.5 | 2.1 | 31.2 | 3.9 | |
Treasury Stock Acquired, Average Cost Per Share | $ 30.01 | $ 45.98 | $ 29.85 | $ 48.29 | |
Treasury Stock, Value, Acquired, Cost Method | $ 195 | $ 98 | $ 929 | $ 188 | $ 513 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Sep. 27, 2015 | |
Treasury Stock [Abstract] | |||
Treasury Stock Reissued During Period, Shares | 1.1 | 2.1 | |
Treasury Stock Reissued During Period, Value | $ 39 | $ 90 | |
Treasury Stock, Shares | 58.2 | 28.2 | |
Treasury Stock, Value | $ 2,014 | $ 1,124 |
Earnings per Share (Earnings pe
Earnings per Share (Earnings per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | Sep. 27, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |||||
Net Income | $ 120 | $ 154 | $ 419 | $ 479 | $ 536 |
Weighted Average Number of Shares Outstanding, Basic | 320.6 | 358.5 | 328.4 | 359.6 | |
Weighted Average Number of Shares Outstanding, Diluted | 321.2 | 360.5 | 329.3 | 362.2 | |
Basic earnings per share (in dollars per share) | $ 0.37 | $ 0.43 | $ 1.27 | $ 1.33 | |
Diluted earnings per share (in dollars per share) | $ 0.37 | $ 0.43 | $ 1.27 | $ 1.32 | |
Potential common shares outstanding [Abstract] | |||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Awards | 0.6 | 2 | 0.9 | 2.6 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 23.6 | 13.8 | 20.8 | 9.8 |
Share-Based Payments Share-Base
Share-Based Payments Share-Based Payments (Option Pricing Model) (Details) - Stock Option [Member] | 9 Months Ended | |
Jul. 03, 2016 | Jul. 05, 2015 | |
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 Yield | 1.73% | 1.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk-free Interest Rate | 1.08% | 1.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility | 31.30% | 29.73% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Life, in Years | 4 years 18 days | 4 years 14 days |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 03, 2016 | Jul. 05, 2015 | Jul. 03, 2016 | Jul. 05, 2015 | Sep. 27, 2015 | |
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 | 29.8 | 29.8 | 32.9 | ||
Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Payment Expense | $ 10 | $ 13 | $ 37 | $ 48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4.9 | 4.8 | 5 | 5.3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6.71 | $ 10.19 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 82 | $ 82 | $ 95 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 10.5 | 10.5 | 11.5 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 24 days |