Document and Entity
Document and Entity - USD ($) | 12 Months Ended | ||
Sep. 25, 2016 | Nov. 11, 2016 | Apr. 10, 2016 | |
Document and Entity [Abstract] | |||
Entity Registrant Name | WHOLE FOODS MARKET INC | ||
Entity Central Index Key | 865,436 | ||
Document Type | 10-K | ||
Entity Filer Category | Large Accelerated Filer | ||
Current Fiscal Year End Date | --09-25 | ||
Document Period End Date | Sep. 25, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Entity Public Float | $ 9,736,323,562 | ||
Entity Common Stock, Shares Outstanding | 318,405,710 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 351 | $ 237 |
Short-term investments - available-for-sale securities | 379 | 155 |
Restricted cash | 122 | 127 |
Accounts receivable | 242 | 218 |
Merchandise inventories | 517 | 500 |
Prepaid expenses and other current assets | 167 | 108 |
Deferred income taxes | 197 | 199 |
Total current assets | 1,975 | 1,544 |
Property and equipment, net of accumulated depreciation and amortization | 3,442 | 3,163 |
Long-term investments - available-for-sale securities | 63 | |
Goodwill | 710 | 710 |
Intangible assets, net of accumulated amortization | 74 | 79 |
Deferred income taxes | 100 | 144 |
Other assets | 40 | 38 |
Total assets | 6,341 | 5,741 |
Current liabilities: | ||
Current installments of long-term debt and capital lease obligations | 3 | 3 |
Accounts payable | 307 | 295 |
Accrued payroll, bonus and other benefits due team members | 407 | 436 |
Dividends payable | 43 | 45 |
Other current liabilities | 581 | 473 |
Total current liabilities | 1,341 | 1,252 |
Long-term capital lease obligations, less current installments | 1,048 | 62 |
Deferred lease liabilities | 640 | 587 |
Other long-term liabilities | 88 | 71 |
Total liabilities | 3,117 | 1,972 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value, 1,200 shares authorized; 377.0 and 377.1 shares issued; 318.3 and 348.9 shares outstanding at 2016 and 2015, respectively | 2,933 | 2,904 |
Common stock in treasury, at cost, 58.7 and 28.2 shares at 2016 and 2015, respectively | (2,026) | (1,124) |
Accumulated other comprehensive loss | (32) | (28) |
Retained earnings | 2,349 | 2,017 |
Total shareholders’ equity | 3,224 | 3,769 |
Total liabilities and shareholders’ equity | $ 6,341 | $ 5,741 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 25, 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 | 318,300,000 | 348,900,000 |
Common Stock, No Par Value | ||
Treasury Stock, Shares | 58,700,000 | 28,200,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | Jul. 03, 2016 | Apr. 10, 2016 | Sep. 27, 2015 | Jul. 05, 2015 | Apr. 12, 2015 | Jan. 17, 2016 | Jan. 18, 2015 | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||
Sales | $ 3,497 | [1] | $ 3,703 | [1] | $ 3,696 | [1] | $ 3,438 | [1] | $ 3,632 | [1] | $ 3,647 | [1] | $ 4,829 | [1] | $ 4,671 | [1] | $ 15,724 | $ 15,389 | $ 14,194 |
Cost of goods sold and occupancy costs | 2,303 | [1] | 2,417 | [1] | 2,406 | [1] | 2,252 | [1] | 2,339 | [1] | 2,337 | [1] | 3,188 | [1] | 3,045 | [1] | 10,313 | 9,973 | 9,150 |
Gross profit | 1,194 | [1] | 1,286 | [1] | 1,290 | [1] | 1,186 | [1] | 1,293 | [1] | 1,310 | [1] | 1,641 | [1] | 1,626 | [1] | 5,411 | 5,416 | 5,044 |
Selling, general and administrative expenses | 1,019 | [1] | 1,057 | [1] | 1,028 | [1] | 1,080 | [1] | 1,032 | [1] | 1,029 | [1] | 1,373 | [1] | 1,330 | [1] | 4,477 | 4,472 | 4,032 |
Pre-opening expenses | 15 | [1] | 18 | [1] | 18 | [1] | 14 | [1] | 12 | [1] | 20 | [1] | 13 | [1] | 21 | [1] | 64 | 67 | 67 |
Relocation, store closure and lease termination costs | 5 | [1] | 2 | [1] | 3 | [1] | 4 | [1] | 2 | [1] | 6 | [1] | 3 | [1] | 4 | [1] | 13 | 16 | 11 |
Operating income | 155 | [1] | 209 | [1] | 241 | [1] | 88 | [1] | 247 | [1] | 255 | [1] | 252 | [1] | 271 | [1] | 857 | 861 | 934 |
Interest expense | (11) | [1] | (12) | [1] | (11) | [1] | (7) | [1] | (41) | ||||||||||
Investment and other income | 3 | [1] | (1) | [1] | 5 | [1] | 4 | [1] | 5 | [1] | 4 | [1] | 4 | [1] | 3 | [1] | 11 | 17 | 12 |
Income before income taxes | 147 | [1] | 196 | [1] | 235 | [1] | 92 | [1] | 252 | [1] | 259 | [1] | 249 | [1] | 274 | [1] | 827 | 878 | 946 |
Provision for income taxes | 59 | [1] | 76 | [1] | 93 | [1] | 36 | [1] | 98 | [1] | 101 | [1] | 92 | [1] | 107 | [1] | 320 | 342 | 367 |
Net income | $ 88 | [1] | $ 120 | [1] | $ 142 | [1] | $ 56 | [1] | $ 154 | [1] | $ 158 | [1] | $ 157 | [1] | $ 167 | [1] | $ 507 | $ 536 | $ 579 |
Basic earnings per share (in dollars per share) | $ 0.28 | [1] | $ 0.37 | [1] | $ 0.44 | [1] | $ 0.16 | [1] | $ 0.43 | [1] | $ 0.44 | [1] | $ 0.47 | [1] | $ 0.46 | [1] | $ 1.55 | $ 1.49 | $ 1.57 |
Weighted average shares outstanding (in shares) | 326.1 | 358.5 | 367.8 | ||||||||||||||||
Diluted earnings per share (in dollars per share) | 0.28 | [1] | 0.37 | [1] | 0.44 | [1] | 0.16 | [1] | 0.43 | [1] | 0.44 | [1] | 0.46 | [1] | 0.46 | [1] | $ 1.55 | $ 1.48 | $ 1.56 |
Weighted average shares outstanding, diluted basis (in shares) | 326.9 | 360.8 | 370.5 | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.135 | $ 0.13 | $ 0.54 | $ 0.52 | $ 0.48 | ||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | [1] | Jul. 03, 2016 | [1] | Apr. 10, 2016 | [1] | Sep. 27, 2015 | [1] | Jul. 05, 2015 | [1] | Apr. 12, 2015 | [1] | Jan. 17, 2016 | [1] | Jan. 18, 2015 | [1] | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||||||||||||||||
Net income | $ 88 | $ 120 | $ 142 | $ 56 | $ 154 | $ 158 | $ 157 | $ 167 | $ 507 | $ 536 | $ 579 | ||||||||
Other comprehensive loss, net of tax: | |||||||||||||||||||
Foreign currency translation adjustments | (4) | (21) | (8) | ||||||||||||||||
Other comprehensive loss, net of tax | (4) | (21) | (8) | ||||||||||||||||
Comprehensive income | $ 503 | $ 515 | $ 571 | ||||||||||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
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 ($0.54, $0.52 and $0.48 per common share for the fiscal years ended September 25, 2016, September 27, 2015, and 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 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 536 | 536 | |||
Other comprehensive loss, net of tax | (21) | (21) | |||
Dividends ($0.54, $0.52 and $0.48 per common share for the fiscal years ended September 25, 2016, September 27, 2015, and September 28, 2014 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) | (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 | $ 507 | 507 | |||
Other comprehensive loss, net of tax | (4) | (4) | |||
Dividends ($0.54, $0.52 and $0.48 per common share for the fiscal years ended September 25, 2016, September 27, 2015, and September 28, 2014 respectively) | (174) | (174) | |||
Issuance of common stock pursuant to team member stock plans | 19 | $ (23) | 42 | ||
Issuance of common stock pursuant to team member stock plans (in shares) | 1.1 | ||||
Purchase of treasury stock | $ (944) | (944) | |||
Purchase of treasury stock (in shares) | (31.7) | (31.7) | |||
Tax benefit related to exercise of team member stock options | $ 3 | $ 3 | |||
Share-based payment expense | 49 | 49 | |||
Other | (1) | (1) | |||
Balances at Sep. 25, 2016 | $ 3,224 | $ 2,933 | $ (2,026) | $ (32) | $ 2,349 |
Balances (in shares) at Sep. 25, 2016 | 318.3 | 318.3 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 25, 2016 | Jul. 03, 2016 | Apr. 10, 2016 | Sep. 27, 2015 | Jul. 05, 2015 | Apr. 12, 2015 | Jan. 17, 2016 | Jan. 18, 2015 | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared per common share (in dollars per share) | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.135 | $ 0.13 | $ 0.54 | $ 0.52 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Cash flows from operating activities | |||
Net income | $ 507 | $ 536 | $ 579 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 498 | 439 | 377 |
Impairment of long-lived assets | 5 | 48 | 1 |
Share-based payment expense | 49 | 64 | 68 |
LIFO expense (benefit) | (7) | 1 | 16 |
Deferred income tax expense (benefit) | 47 | (43) | (78) |
Excess tax benefit related to exercise of team member stock options | (4) | (11) | (9) |
Accretion of premium/discount on marketable securities | 1 | 17 | 27 |
Deferred lease liabilities | 43 | 32 | 36 |
Other | 11 | 5 | 11 |
Net change in current assets and liabilities: | |||
Accounts receivable | (24) | (21) | (14) |
Merchandise inventories | (11) | (61) | (41) |
Prepaid expenses and other current assets | (59) | (9) | (4) |
Accounts payable | 13 | 20 | 30 |
Accrued payroll, bonus and other benefits due team members | (29) | 58 | 12 |
Other current liabilities | 62 | 47 | 54 |
Net change in other long-term liabilities | 14 | 7 | 23 |
Net cash provided by operating activities | 1,116 | 1,129 | 1,088 |
Cash flows from investing activities | |||
Development costs of new locations | (395) | (516) | (447) |
Other property and equipment expenditures | (321) | (335) | (263) |
Purchases of available-for-sale securities | (593) | (494) | (720) |
Sales and maturities of available-for-sale securities | 431 | 928 | 1,054 |
Purchases of intangible assets | (2) | (3) | (20) |
Decrease (increase) in restricted cash | 4 | (19) | 2 |
Payment for purchase of acquired entities, net of cash acquired | (11) | (4) | (73) |
Other investing activities | (8) | (12) | (17) |
Net cash used in investing activities | (895) | (455) | (484) |
Cash flows from financing activities | |||
Purchases of treasury stock | (944) | (513) | (578) |
Common stock dividends paid | (177) | (184) | (170) |
Issuance of common stock | 19 | 66 | 42 |
Excess tax benefit related to exercise of team member stock options | 4 | 11 | 9 |
Proceeds from long-term borrowings | 999 | ||
Proceeds from revolving line of credit | 300 | ||
Payments on long-term debt and capital lease obligations | (306) | (1) | (1) |
Other financing activities | (8) | (1) | |
Net cash used in financing activities | (113) | (622) | (698) |
Effect of exchange rate changes on cash and cash equivalents | 6 | (5) | (6) |
Net change in cash and cash equivalents | 114 | 47 | (100) |
Cash and cash equivalents at beginning of period | 237 | 190 | 290 |
Cash and cash equivalents at end of period | 351 | 237 | 190 |
Supplemental disclosure of cash flow information: | |||
Federal and state income taxes paid | 377 | $ 383 | $ 429 |
Interest Paid | $ 27 |
Description of Business
Description of Business | 12 Months Ended |
Sep. 25, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | Description of Business Whole Foods Market is the leading natural and organic foods supermarket and is a mission-driven company that aims to set the standards of excellence in food retailing. Through our growth, we have had a significant and positive impact on the natural and organic foods movement throughout the United States, helping lead the industry to nationwide acceptance over the last 38 years. As of September 25, 2016 , we operated 456 stores: 436 stores in 42 United States (“U.S.”) states and the District of Columbia; 11 stores in Canada; and 9 stores in the United Kingdom (“U.K.”). The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets. The following is a summary of annual percentage sales and net long-lived assets by geographic area for the fiscal years indicated: 2016 2015 2014 Sales: United States 97.1 % 96.9 % 96.7 % Canada and United Kingdom 2.9 3.1 3.3 Total sales 100.0 % 100.0 % 100.0 % Long-lived assets, net: United States 97.5 % 97.4 % 96.0 % Canada and United Kingdom 2.5 2.6 4.0 Total long-lived assets, net 100.0 % 100.0 % 100.0 % The following is a summary of annual percentage sales by product category for the fiscal years indicated: 2016 2015 2014 Perishables: Prepared foods and bakery 18.9 % 19.0 % 19.2 % Other perishables 47.6 47.5 47.6 Total perishables 66.5 66.5 66.8 Non-perishables 33.5 33.5 33.2 Total sales 100.0 % 100.0 % 100.0 % |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 25, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Definition of Fiscal Year The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal years 2016 , 2015 and 2014 were 52-week years. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant majority-owned subsidiaries are consolidated on a line-by-line basis, and all significant intercompany accounts and transactions are eliminated upon consolidation. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. Investments Available-for-sale investments are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale investments are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. A decline in the fair value of any available-for-sale security below cost that is deemed to be other than temporary results in a reduction of the carrying amount to fair value. The impairment is charged to earnings and a new cost basis of the security is established. The Company considers several factors when determining whether an impairment is other than temporary, including the extent and duration of the decline in fair value and whether it is more likely than not that we will be required to sell the security before recovery of its basis. Cost basis is established and maintained utilizing the specific identification method. The Company also holds certain equity interests accounted for using the cost method of accounting. Equity investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and classified as “Other assets” on the Consolidated Balance Sheet. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. Additionally, the Company holds certain equity interests accounted for using the equity method of accounting. The Company’s share of income and losses from equity method investments is included in “Selling, general and administrative expenses” on the Consolidated Statements of Operations. Restricted Cash Restricted cash primarily relates to cash held as collateral to support a portion of our projected workers’ compensation obligations. Additionally, the Company holds restricted cash as a rent guarantee on certain operating leases through fiscal year 2020 . Accounts Receivable Accounts receivable are shown net of related allowances and consist primarily of credit card receivables, vendor receivables, customer purchases, and occupancy-related receivables. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method and was not material in fiscal year 2016 or 2015 . Inventories The Company values inventories at the lower of cost or market. Cost was determined using the dollar value retail last-in, first-out (“LIFO”) method for approximately 91.8% and 92.2% of inventories in fiscal years 2016 and 2015 , respectively. Under the LIFO method, the cost assigned to items sold is based on the cost of the most recent items purchased. As a result, the costs of the first items purchased remain in inventory and are used to value ending inventory. The excess of estimated current costs over LIFO carrying value, or LIFO reserve, was approximately $42 million and $49 million at September 25, 2016 and September 27, 2015 , respectively. Costs for remaining inventories are determined by the first-in, first-out method. Cost before the LIFO adjustment is principally determined using the item cost method, which is calculated by counting each item in inventory, assigning costs to each of these items based on the actual purchase cost (net of vendor allowances) of each item and recording the actual cost of items sold. Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation and amortization. The Company provides depreciation of equipment over the estimated useful lives (generally 3 to 15 years) using the straight-line method, and provides amortization of leasehold improvements and real estate assets under capital leases on a straight-line basis over the shorter of the estimated useful lives of the improvements or the expected terms of the related leases. The Company provides depreciation of buildings over the estimated useful lives (generally 20 to 50 years) using the straight-line method. Costs related to a projected site determined to be unsatisfactory and general site selection costs that cannot be identified with a specific store location are charged to operations currently. The Company recognizes a liability for the fair value of a conditional asset retirement obligation when the obligation is incurred. Repair and maintenance costs are expensed as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in earnings. Leases The Company generally leases stores, non-retail facilities and administrative offices under operating leases. Store lease agreements generally include rent holidays, rent escalation clauses and contingent rent provisions for percentage of sales in excess of specified levels. We recognize rent on a straight-line basis over the expected term of the lease, which includes rent holiday periods and scheduled rent increases. The expected lease term begins with the date the Company has the right to possess the leased space for construction and other purposes. The expected lease term may also include the exercise of renewal options if the exercise of the option is determined to be reasonably assured. The expected lease term is also used in the determination of whether a store lease is a capital or operating lease. Amortization of land and building under capital lease is included with occupancy costs, while the amortization of equipment under capital lease is included with depreciation expense. Additionally, we review leases for which we are involved in construction to determine whether build-to-suit and sale-leaseback criteria are met. For those leases that trigger specific build-to-suit accounting, developer assets are recorded during the construction period with an offsetting liability. Developer assets recorded as of September 25, 2016 totaling approximately $14 million , with the offsetting liability included in the “Other current liabilities” line item on the Consolidated Balance Sheets. As of September 27, 2015 , developer assets were not material. Sale-leaseback transactions are recorded as financing lease obligations. We record tenant improvement allowances and rent holidays as deferred rent liabilities, and amortize the deferred rent over the expected lease term to rent. We record rent liabilities for contingent percentage of sales lease provisions when we determine that it is probable that the specified levels as defined by the lease will be reached. Goodwill and Intangible Assets Goodwill consists of the excess of cost of acquired enterprises over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is reviewed for impairment annually at the Company’s fiscal year end, or more frequently if impairment indicators arise, on a reporting unit level. We allocate goodwill to one reporting unit for goodwill impairment testing. A qualitative assessment, based on macroeconomic factors, industry and market conditions and company-specific performance, is performed to determine whether it is more likely than not that the fair value of the reporting unit is impaired. If it is more likely than not, we compare our fair value, which is determined utilizing both a market value method and discounted projected future cash flows, to our carrying value for the purpose of identifying impairment. Intangible assets include acquired leasehold rights, favorable lease assets, trade names, brand names, patents, liquor licenses, license agreements, and non-competition agreements. The Company amortizes definite-lived intangible assets on a straight-line basis over the period the intangible asset is expected to generate cash flows, generally the life of the related agreement. Currently, the weighted average life is approximately 15 years for contract-based intangible assets and approximately 1 years for marketing-related and other identifiable intangible assets. Indefinite-lived intangible assets are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate the carrying amount of an intangible asset may not be recoverable. Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of The Company evaluates long-lived assets for impairment whenever events or changes in circumstances, such as unplanned negative cash flow, short lease life, or a plan to close is established, indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are determined to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds the fair value of the assets. The fair value, based on hierarchy input Level 3, is determined using management’s best estimate based on a discounted cash flow model based on future store operating results using internal projections of future net sales and comparable store sales, or based on a review of the future benefit the Company anticipates receiving from the related assets. Additionally for closing locations, the Company estimates net future cash flows based on its experience and knowledge of the area in which the closed property is located and, when necessary, utilizes local real estate brokers. Estimates of future net sales and comparable store sales may vary based upon current and anticipated business trends, including increased competition and the opening of new stores that cannibalize store sales in existing areas. Changes in these forecasts could significantly change the amount of impairment recorded, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. When the Company impairs assets related to an operating location, a charge to write down the related assets is included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations. When the Company commits to relocate, close, or dispose of a location, a charge to write down the related assets to their estimated recoverable value is included in the “Relocation, store closure and lease termination costs” line item on the Consolidated Statements of Operations. Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in generally accepted accounting principles. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: • Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities generally consisting of state and local municipal obligations and corporate bonds and commercial paper which hold high credit ratings. These instruments are valued using a series of multi-dimensional relational models and series of matrices with standard inputs obtained from readily available pricing sources and other observable market data, such as benchmark yields and base spread. Investments are stated at fair value with unrealized gains and losses, net of related tax effect, included as a component of shareholders’ equity until realized. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. The carrying amounts of accrued payroll, bonuses and other benefits due team members, and other accrued expenses approximate fair value because of their short maturities. Store closure reserves and estimated workers’ compensation claims are recorded at net present value to approximate fair value. Insurance and Self-Insurance Reserves The Company uses a combination of insurance and self-insurance plans to provide for the potential liabilities for workers’ compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability, and employee health care benefits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. The Company had insurance liabilities totaling approximately $180 million and $170 million at September 25, 2016 and September 27, 2015 , respectively, included in the “Other current liabilities” line item on the Consolidated Balance Sheets. Reserves for Closed Properties The Company maintains reserves for retail stores and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using the present value of the remaining noncancelable lease payments and lease termination fees after the closing date, net of estimated subtenant income. The closed property lease liabilities are expected to be paid over the remaining lease terms, which generally range from four months to eight years . The Company estimates subtenant income and future cash flows based on the Company’s experience and knowledge of the area in which the closed property is located, the Company’s previous efforts to dispose of similar assets and existing economic conditions. Reserves for closed properties are included in the “Other current liabilities” and “Other long-term liabilities” line items on the Consolidated Balance Sheets. The reserves for closed properties include management’s estimates for lease subsidies, lease terminations and future payments on exited real estate. Adjustments to closed property reserves primarily relate to changes in existing economic conditions, subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. Revenue Recognition We recognize revenue for sales of our products at the point of sale. Discounts provided to customers at the point of sale are recognized as a reduction in sales as the products are sold. Sales taxes are not included in revenue. Cost of Goods Sold and Occupancy Costs Cost of goods sold includes cost of inventory sold during the period (net of discounts and allowances), distribution and food preparation costs, and shipping and handling costs. The Company receives various rebates from third-party vendors in the form of purchase or sales volume discounts and payments under cooperative advertising agreements. Purchase volume discounts are calculated based on actual purchase volumes. Volume discounts and cooperative advertising discounts in excess of identifiable advertising costs are recognized as a reduction of cost of goods sold when the related merchandise is sold. The Company utilizes forward purchases to limit its exposures to changes in commodity prices. All forward purchase commitments are established at current prices and recorded through cost of goods sold at settlement. Occupancy costs include store rental costs, property taxes, utility costs, repair and maintenance costs, and property insurance. Our largest supplier, United Natural Foods, Inc., accounted for approximately 32.5% , 32.0% and 31.8% of our total purchases in fiscal years 2016 , 2015 and 2014 , respectively. Selling, General and Administrative Expenses Selling, general and administrative expenses consist of retail operational expenses, marketing, and corporate and regional administrative support costs. Advertising expense for fiscal years 2016 , 2015 and 2014 was approximately $96 million , $89 million and $63 million , respectively. Advertising costs are charged to expense when incurred, except for certain production costs that are charged to expense when the advertising first takes place. Pre-opening Expenses Pre-opening expenses include rent expense incurred during construction of new facilities and costs related to new location openings, including costs associated with hiring and training personnel, smallwares, supplies and other miscellaneous costs. Rent expense is generally incurred approximately nine months prior to a store’s opening date. Other pre-opening expenses are incurred primarily in the 60 days prior to a new store opening. Pre-opening costs are expensed as incurred. Relocation, Store Closure and Lease Termination Costs Relocation costs consist of moving costs, estimated remaining net lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with replaced facilities. Store closure costs consist of estimated remaining lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with closed facilities. Lease termination costs consist of estimated remaining net lease payments for terminated leases and idle properties, and associated asset impairments. Share-Based Payments The Company maintains several share-based incentive plans. We grant both options to purchase common stock and restricted common stock under our Whole Foods Market 2009 Stock Incentive Plan. Options outstanding are governed by the original terms and conditions of the grants, unless modified by a subsequent agreement. Options are granted at an option price equal to the market value of the stock at the grant date and generally vest ratably over a four - or nine -year period beginning one year from grant date and have a five , seven , or ten year term. The grant date is established once the Company’s Board of Directors approves the grant and all key terms have been determined. Stock option grant terms and conditions are communicated to team members within a relatively short period of time. The Company generally approves one primary stock option grant annually, occurring during a trading window. Restricted common stock is granted at the market price of the stock on the day of grant and generally vests over a four - or six -year period. The Company uses the Black-Scholes multiple option pricing model which requires extensive use of accounting judgment and financial estimates, including estimates of the expected term team members will retain their vested stock options before exercising them, the estimated volatility of the Company’s common stock price over the expected term, and the number of options that will be forfeited prior to the completion of their vesting requirements. The related share-based payment expense is recognized on a straight-line basis over the requisite service period. The tax savings resulting from tax deductions in excess of expense reflected in the Company’s financial statements are reflected as a financing cash flow. All full-time team members with a minimum of 400 hours of service may purchase our common stock through payroll deductions under the Company’s Team Member Stock Purchase Plan (“TMSPP”). The TMSPP provides for a 5% discount on the shares’ purchase date market value, which meets the share-based payment “Safe Harbor” provisions, and therefore is non-compensatory. As a result, no compensation expense is recognized for our team member stock purchase plan. Income Taxes The Company recognizes deferred income tax assets and liabilities by applying statutory tax rates in effect at the balance sheet date to differences between the book basis and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Deferred tax assets and liabilities are adjusted to reflect changes in tax laws or rates in the period that includes the enactment date. The Company may recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained by the taxing authorities based on technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Significant accounting judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. The Company believes that its tax positions are consistent with applicable tax law, but certain positions may be challenged by taxing authorities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. In addition, we are subject to periodic audits and examinations by the IRS and other state and local taxing authorities. Although we believe that our estimates are reasonable, actual results could differ from these estimates. Treasury Stock Under the Company’s stock repurchase program, the Company can repurchase shares of the Company’s common stock on the open market that are held in treasury at cost. Shares held in treasury may be reissued to satisfy exercises of stock options and issuances of restricted stock awards. The Company does not currently intend to retire its treasury shares. The Company’s common stock has no par value. Earnings per Share Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the fiscal period. Diluted earnings per share are based on the weighted average number of common shares outstanding plus, where applicable, the additional common shares that would have been outstanding related to dilutive share-based awards using the treasury stock method. Dilutive potential common shares include outstanding stock options and unvested restricted stock awards. Comprehensive Income Comprehensive income consists of: net income; foreign currency translation adjustments; and unrealized gains and losses on available-for-sale securities, net of income tax, and is reflected in the Consolidated Statements of Comprehensive Income. Foreign Currency Translation The Company’s operations in Canada and the U.K. use their local currency as their functional currency. Foreign currency transaction gains and losses related to Canadian intercompany operations are charged to net income in the period incurred. Foreign currency gains and losses were not material in fiscal year 2016 , 2015 or 2014 . Intercompany transaction gains and losses associated with our U.K. operations are excluded from the determination of net income since these transactions are considered long-term investments in nature. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average exchange rates during the fiscal year. Resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. Actual amounts could differ from those estimates. Reclassifications Where appropriate, we have reclassified prior years’ financial statements to conform to current year presentation. Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting pronouncements: 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. Standard Description Effective Date Effect on financial statements and other significant matters 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. 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. Standard Description Effective Date Effect on financial statements and other significant matters 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 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 25, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels indicated (in millions): September 25, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 62 $ — $ — $ 62 Commercial paper — 30 — 30 Municipal bonds — 46 — 46 Marketable securities - available-for-sale: Commercial paper — 30 — 30 Municipal bonds — 26 — 26 Variable-rate demand notes — 323 — 323 Total $ 62 $ 455 $ — $ 517 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 Assets Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value on a nonrecurring basis include items such as property and equipment, intangible assets, and other assets. These assets are measured at fair value if determined to be impaired. Fair value adjustments, based on hierarchy input Level 3, were not material during fiscal year 2016 or 2014. During fiscal year 2015, the Company recorded fair value adjustments, based on hierarchy input Level 3, totaling approximately $46 million related to certain locations for which asset value exceeded expected future cash flows, which were primarily included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations. These asset impairment charges reduced the carrying value of related long-term assets to fair value of zero. |
Investments
Investments | 12 Months Ended |
Sep. 25, 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): September 25, September 27, Short-term marketable securities - available-for-sale: Asset-backed securities $ — $ 10 Certificates of deposit — 2 Commercial paper 30 — Corporate bonds — 15 Municipal bonds 26 128 Variable rate demand notes 323 — Total short-term marketable securities $ 379 $ 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 September 25, 2016 or September 27, 2015 . Available-for-sale securities totaling approximately $33 million and $58 million were in unrealized loss positions at September 25, 2016 and September 27, 2015 , respectively. The aggregate value of available-for-sale securities in a continuous unrealized loss position for greater than 12 months was not material at September 25, 2016 or September 27, 2015 . The Company did not recognize any other-than-temporary impairments during the last three fiscal years. At September 25, 2016 , the average effective maturity of the Company’s short-term available-for-sale securities was less than one month. The average effective maturity of the Company’s short- and long-term available-for-sale securities was approximately 7 months and 16 months, respectively, at September 27, 2015 . The Company held approximately $19 million and $14 million in equity interests that are accounted for using the cost method of accounting at September 25, 2016 and September 27, 2015 , respectively. Equity interests accounted for using the equity method were not material at September 25, 2016 or September 27, 2015 . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 25, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Balances of major classes of property and equipment were as follows (in millions): September 25, September 27, Land $ 161 $ 151 Buildings and leasehold improvements 3,390 3,116 Capitalized real estate leases 80 81 Fixtures and equipment 2,499 2,330 Construction in progress and equipment not yet in service 284 176 Property and equipment, gross 6,414 5,854 Less accumulated depreciation and amortization (2,972 ) (2,691 ) Property and equipment, net of accumulated depreciation and amortization $ 3,442 $ 3,163 Depreciation and amortization expense related to property and equipment totaled approximately $478 million , $422 million and $360 million for fiscal years 2016 , 2015 and 2014 , respectively. Asset impairment charges related to property and equipment were not material in fiscal year 2016 . During fiscal year 2015 , asset impairment charges related to property and equipment totaled approximately $48 million , including approximately $46 million related to locations as discussed in Note 3, Fair Value Measurements. These charges were incurred because future estimated cash flows were less than the carrying value of assets. The Company reduced the future estimated cash flows based on current comparable store sales trends and reductions in estimated future net sales projections based on future and anticipated business trends, including increased competition. Development costs of new locations totaled approximately $395 million , $516 million and $447 million in fiscal years 2016 , 2015 and 2014 , respectively. Construction accruals related to development sites, remodels, and expansions were included in the “Other current liabilities” line item on the Consolidated Balance Sheets and totaled approximately $94 million and $54 million at September 25, 2016 and September 27, 2015 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 25, 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 fiscal year 2016. Additions and adjustments to goodwill during fiscal year 2015 were not material. There were no impairments of goodwill during fiscal years 2016 , 2015 or 2014 . Additions of other intangible assets were not material during fiscal years 2016 and 2015. The components of intangible assets as of the dates indicated were as follows (in millions): September 25, 2016 September 27, 2015 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Definite-lived contract-based $ 120 $ (55 ) $ 122 $ (50 ) Indefinite-lived contract-based 9 — 7 — Total $ 129 $ (55 ) $ 129 $ (50 ) Amortization expense associated with intangible assets was not material during fiscal year 2016 , 2015 or 2014 . Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions): Fiscal year 2017 $ 6 Fiscal year 2018 5 Fiscal year 2019 5 Fiscal year 2020 5 Fiscal year 2021 4 Future fiscal years 40 Total $ 65 |
One-Time Termination Benefits
One-Time Termination Benefits | 12 Months Ended |
Sep. 25, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | One-Time Termination Benefits During fiscal year 2015, the Company recorded one-time termination benefits totaling $34 million , included in the “Selling, general, and administrative expenses” line item on the Consolidated Statements of Operations as part of its ongoing commitment to lower prices for its customers and invest in technology upgrades while improving its cost structure. The Company reduced more than 2,000 positions, which represented approximately 2.1% of its workforce at the time of the reduction. Affected team members were offered several options, including transition pay, severance pay, or the opportunity to apply for other jobs. 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 | 12 Months Ended |
Sep. 25, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, Other Activities Disclosure [Text Block] | Reserves for Closed Properties The following table provides a summary of activity in reserves for closed properties during the fiscal years indicated (in millions): 2016 2015 Beginning balance $ 28 $ 31 Additions 6 9 Usage (10 ) (13 ) Adjustments 2 1 Ending balance $ 26 $ 28 Additions to store closure reserves primarily relate to the accretion of interest on existing reserves. Additions related to six and seven new closures during fiscal years 2016 and 2015 , respectively, were not material. Usage primarily related to ongoing cash rental payments totaled approximately $10 million and $13 million for fiscal years 2016 and 2015 , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 25, 2016 | |
Long-term Debt, Unclassified [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 September 25, 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 September 25, 2016 , the Company had no amounts outstanding. Commitment fees paid on undrawn amounts were not material during the fifty-two weeks ended September 25, 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. Subsequent to fiscal year 2016, the Company commenced a registered exchange offer to exchange the Notes for new notes that are identical in all material respects to the Notes, except that the new notes have been registered under the Securities Act. The exchange offer expired on October 28, 2016, and approximately 99.1% of the Notes were exchanged. The Notes that were not exchanged 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. 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): September 25, 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 58 65 Total long-term debt and capital lease obligations 1,051 65 Less: current installments (3 ) (3 ) Total long-term debt and capital lease obligations, less current installments $ 1,048 $ 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 September 25, 2016 , based on observable market prices (Level 2), exceeded the carrying value by approximately $92 million . |
Leases
Leases | 12 Months Ended |
Sep. 25, 2016 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Company is committed under certain capital leases for rental of certain buildings, land and equipment, and certain operating leases for rental of facilities and equipment. These leases expire or become subject to renewal clauses at various dates from 2016 to 2054 . The Company had capital lease obligations totaling approximately $58 million and $65 million at September 25, 2016 and September 27, 2015 , respectively. Rental expense charged to operations under operating leases for fiscal years 2016 , 2015 and 2014 totaled approximately $477 million , $441 million and $407 million , respectively, which included contingent rentals totaling approximately $12 million , $14 million and $13 million during those same periods. Sublease rental income was not material during fiscal year 2016 , 2015 or 2014 . Prepaid rent is included in the “Other current assets” line item on the Consolidated Balance Sheets and totaled approximately $44 million and $38 million at September 25, 2016 and September 27, 2015, respectively. Minimum rental commitments and sublease rental income required by all noncancelable leases are approximately as follows (in millions): Capital Operating Sublease Fiscal year 2017 $ 6 $ 433 $ 8 Fiscal year 2018 5 522 7 Fiscal year 2019 4 557 5 Fiscal year 2020 5 568 5 Fiscal year 2021 5 569 3 Future fiscal years 65 6,485 4 90 $ 9,134 $ 32 Less amounts representing interest 32 Net present value of capital lease obligations $ 58 The present values of future minimum obligations for capital leases shown above are calculated based on interest rates determined at the inception of the lease, or upon acquisition of the original lease. The future minimum obligations for operating leases shown above include locations in development. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Components of income tax expense for the fiscal years indicated were as follows (in millions): 2016 2015 2014 Current federal income tax $ 223 $ 310 $ 359 Current state income tax 52 76 82 Current foreign income tax (1 ) (1 ) 2 Total current tax 274 385 443 Deferred federal income tax 41 (40 ) (66 ) Deferred state income tax 8 (2 ) (10 ) Deferred foreign income tax (3 ) (1 ) — Total deferred tax 46 (43 ) (76 ) Total income tax expense $ 320 $ 342 $ 367 Actual income tax expense for the fiscal years indicated differed from the amount computed by applying statutory corporate income tax rates to income before income taxes as follows (in millions): 2016 2015 2014 Federal income tax based on statutory rates $ 289 $ 307 $ 331 Increase (reduction) in income taxes resulting from: Tax-exempt interest — (1 ) (1 ) Excess charitable contributions (10 ) (9 ) (8 ) Federal income tax credits (4 ) (3 ) (3 ) Other, net 10 2 2 Total federal income taxes 285 296 321 State income taxes, net of federal income tax benefit 39 48 47 Tax impact of foreign operations (4 ) (2 ) (1 ) Total income tax expense $ 320 $ 342 $ 367 Current income taxes receivable were not material at September 25, 2016 or September 27, 2015 . The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows (in millions): September 25, September 27, Deferred tax assets: Compensation-related costs $ 215 $ 207 Insurance-related costs 60 59 Inventories 5 2 Lease and other termination accruals 10 11 Lease negotiation legal fees 7 6 Rent differential 189 170 Tax basis of fixed assets in excess of financial basis 8 11 Net domestic and international operating loss carryforwards 14 23 Other 13 9 Gross deferred tax assets 521 498 Valuation allowance (23 ) (35 ) Deferred tax assets 498 463 Deferred tax liabilities: Financial basis of fixed assets in excess of tax basis (197 ) (117 ) Capitalized costs expensed for tax purposes (4 ) (3 ) Deferred tax liabilities (201 ) (120 ) Net deferred tax asset $ 297 $ 343 Deferred taxes have been classified on the Consolidated Balance Sheets as follows (in millions): September 25, September 27, Current assets $ 197 $ 199 Noncurrent assets 100 144 Net deferred tax asset $ 297 $ 343 At September 25, 2016 , the Company had international operating loss carryforwards totaling approximately $71 million , all of which have an indefinite life. The Company provided a valuation allowance totaling approximately $23 million for deferred tax assets associated with international operating loss carryforwards, federal credit carryforwards, and deferred tax assets associated with unrecognized tax benefits, for which management has determined it is more likely than not that the deferred tax asset will not be realized. Management believes that it is more likely than not that we will fully realize the remaining domestic deferred tax assets in the form of future tax deductions based on the nature of these deductible temporary differences and a history of profitable operations. The Company intends to utilize earnings in foreign operations for an indefinite period of time, or to repatriate such earnings only when tax-efficient to do so. If these amounts were distributed to the United States, in the form of dividends or otherwise, the Company would be subject to additional U.S. income taxes. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. The Company’s total gross unrecognized tax benefits are classified in the “Other long-term liabilities” line item on the Consolidated Balance Sheets and were not material during the last three fiscal years. The Company and its domestic subsidiaries file income tax returns with federal, state and local tax authorities within the United States. The Company’s foreign affiliates file income tax returns in Canada and the United Kingdom. The IRS of the United States completed its examination of the Company’s federal tax returns for fiscal year 2014 during the first quarter of fiscal year 2016 . With limited exceptions, the Company is no longer subject to federal income tax examinations for fiscal years before 2015 and is no longer subject to state and local income tax examinations for fiscal years before 2009. Additionally, the Company entered into a Compliance Agreement Program (“CAP”) with the IRS under which the Company’s federal income tax return is reviewed and accepted by the Internal Revenue Service in conjunction with the filing of its tax return. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 25, 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 years 2016 and 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 0.135 July 1, 2016 July 12, 2016 43 September 22, 2016 0.135 October 3, 2016 October 14, 2016 43 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 0.13 July 2, 2015 July 14, 2015 47 September 15, 2015 0.13 October 2, 2015 October 13, 2015 45 (1) Dividend accrued at September 25, 2016 Treasury Stock Share repurchase activity prior to the fourth quarter of fiscal year 2014 was pursuant to various share repurchase programs authorized by the Company’s Board of Directors (“the Board”). As of September 25, 2016 , one share repurchase program remains in effect, with prior programs having been fully utilized, expired or cancelled. The following table outlines the share repurchase programs authorized by the Board, and the related repurchase activity as of September 25, 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 $ 556 $ 444 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 the program may be suspended or discontinued at any time at the Company’s discretion. Share repurchase activity for the fiscal years indicated was as follows (in millions, except per share amounts): 2016 2015 Number of common shares acquired 31.7 13.8 Average price per common share acquired $ 29.82 $ 37.06 Total cost of common shares acquired $ 944 $ 513 The Company reissued approximately 1.1 million treasury shares at cost of approximately $42 million and approximately 2.3 million treasury shares at cost of approximately $100 million to satisfy the issuance of common stock pursuant to team member stock plans during fiscal years 2016 and 2015 , respectively. At September 25, 2016 and September 27, 2015 , the Company held in treasury approximately 58.7 million shares and 28.2 million shares, respectively, totaling approximately $2.0 billion and $1.1 billion , respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 25, 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): 2016 2015 2014 Net income (numerator for basic and diluted earnings per share) $ 507 $ 536 $ 579 Weighted average common shares outstanding (denominator for basic earnings per share) 326.1 358.5 367.8 Incremental common shares attributable to dilutive effect of share-based awards 0.8 2.3 2.7 Weighted average common shares outstanding and potential additional common shares outstanding(denominator for diluted earnings per share) 326.9 360.8 370.5 Basic earnings per share $ 1.55 $ 1.49 $ 1.57 Diluted earnings per share $ 1.55 $ 1.48 $ 1.56 The computation of diluted earnings per share for fiscal years 2016 , 2015 and 2014 does not include share-based awards to purchase approximately 21.8 million shares, 12.0 million shares and 9.1 million shares of common stock, respectively, due to their antidilutive effect. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Sep. 25, 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 $49 million , $64 million and $68 million , respectively, during fiscal years 2016 , 2015 and 2014 . At September 25, 2016 , September 27, 2015 and September 28, 2014 approximately 29.8 million shares, 32.9 million shares and 37.6 million shares of the Company’s common stock, respectively, were available for future stock incentive grants. Stock Options The following table summarizes stock option activity (in millions, except per share amounts and contractual lives in years): Number Weighted Weighted Aggregate Outstanding options at September 29, 2013 19.2 $ 36.90 Options granted 5.3 40.25 Options exercised (1.5 ) 24.13 Options expired (0.1 ) 36.10 Options forfeited (0.6 ) 42.32 Outstanding options at September 28, 2014 22.3 $ 38.37 Options granted 5.3 44.30 Options exercised (2.2 ) 27.81 Options expired (0.3 ) 42.88 Options forfeited (0.8 ) 42.66 Outstanding options at September 27, 2015 24.3 $ 40.45 Options granted 5.0 30.31 Options exercised (0.9 ) 15.23 Options expired (0.9 ) 41.73 Options forfeited (1.2 ) 41.72 Outstanding options at September 25, 2016 26.3 $ 39.35 4.17 $ 13 Vested/expected to vest at September 25, 2016 25.2 $ 39.53 4.09 $ 12 Exercisable options at September 25, 2016 14.8 $ 40.47 3.01 $ 11 The weighted average grant date fair value of options granted during fiscal years 2016 , 2015 and 2014 was $6.71 , $10.19 and $9.67 , respectively. The aggregate intrinsic value of stock options at exercise, represented in the table above, was approximately $16 million , $46 million and $36 million during fiscal years 2016 , 2015 and 2014 , respectively. The Company realized a tax benefit from stock options exercised during fiscal years 2016 , 2015 and 2014 totaling approximately $15 million , $46 million and $36 million , respectively. The total fair value of shares vested during fiscal years 2016 , 2015 and 2014 was approximately $141 million , $209 million and $192 million , respectively, including the value of vested options exercised during those same periods. As of the end of fiscal years 2016 and 2015 , there was approximately $73 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 2.9 years. Share-based payment expense related to vesting stock options recognized during fiscal years 2016 , 2015 and 2014 totaled approximately $45 million , $60 million and $63 million , respectively. A summary of stock options outstanding and exercisable at September 25, 2016 follows (share amounts in millions): Range of Exercise Prices Options Outstanding Options Exercisable From To Number of options outstanding Weighted average exercise price Weighted average remaining life (in years) Number of options exercisable Weighted average exercise price $ 20.42 $ 29.55 1.6 $ 20.49 1.62 1.4 $ 20.43 30.30 38.50 11.0 33.00 4.78 4.4 33.98 40.81 46.28 9.2 43.73 3.98 6.0 44.06 51.25 59.15 4.5 52.40 3.96 3.0 52.12 26.3 $ 39.35 4.17 14.8 $ 40.47 The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2016 2015 2014 Expected dividend yield 1.73 % 1.00 % 0.95 % Risk-free interest rate 1.08 % 1.20 % 1.18 % Expected volatility 31.30 % 29.73 % 30.96 % Expected life, in years 4.05 4.04 4.04 Risk-free interest rate is based on the U.S. Treasury yield curve on the date of the grant for the time period equal to the expected term of the grant. Expected volatility is calculated using a ratio of implied volatility based on the Newton-Raphson method of bisection, and four or six year historical volatilities based on the expected life of each tranche of options. The Company determined the use of blended volatility versus historical or implied volatility represents a more accurate calculation of option fair value. Expected life is calculated in two tranches based on weighted average percentage of unexpired options and exercise-after-vesting information over the last five or seven years. Unvested options are included in the term calculation using the “mid-point scenario” which assumes that unvested options will be exercised halfway between vest and expiration date. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and experience. In addition to the above valuation assumptions, the Company estimates an annual forfeiture rate for unvested options and adjusts fair value expense accordingly. The Company monitors actual forfeiture experience and adjusts the rate from time to time as necessary. |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Sep. 25, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Results (unaudited) The Company’s first fiscal quarter consists of 16 weeks, the second and third fiscal quarters each are 12 weeks, and the fourth fiscal quarter is 12 or 13 weeks. Fiscal years 2016 and 2015 were 52-week years with twelve weeks in the fourth quarter. Because the first fiscal quarter is longer than the remaining quarters, it typically represents a larger share of the Company’s annual sales from existing stores. Quarter-to-quarter comparisons of results of operations have been and may be materially impacted by the timing of new store openings. The Company believes that the following information reflects all adjustments, consisting of normal recurring accruals, necessary for a fair presentation. The operating results for any quarter are not necessarily indicative of results for any future period. During the fourth quarter of fiscal year 2015, “Selling, general, and administrative expenses” included asset impairment charges totaling approximately $46 million related to certain locations for which asset value exceeded expected future cash flows and a one-time termination charge of $34 million related to restructuring. The following tables set forth selected unaudited quarterly Consolidated Statements of Operations information for the fiscal years ended September 25, 2016 and September 27, 2015 (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year 2016 (1) Sales $ 4,829 $ 3,696 $ 3,703 $ 3,497 Cost of goods sold and occupancy costs 3,188 2,406 2,417 2,303 Gross profit 1,641 1,290 1,286 1,194 Selling, general and administrative expenses 1,373 1,028 1,057 1,019 Pre-opening expenses 13 18 18 15 Relocation, store closure and lease termination costs 3 3 2 5 Operating income 252 241 209 155 Interest expense (7 ) (11 ) (12 ) (11 ) Investment and other income (expense) 4 5 (1 ) 3 Income before income taxes 249 235 196 147 Provision for income taxes 92 93 76 59 Net income $ 157 $ 142 $ 120 $ 88 Basic earnings per share $ 0.47 $ 0.44 $ 0.37 $ 0.28 Diluted earnings per share $ 0.46 $ 0.44 $ 0.37 $ 0.28 Dividends declared per common share $ 0.135 $ 0.135 $ 0.135 $ 0.135 First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year 2015 (1) Sales $ 4,671 $ 3,647 $ 3,632 $ 3,438 Cost of goods sold and occupancy costs 3,045 2,337 2,339 2,252 Gross profit 1,626 1,310 1,293 1,186 Selling, general and administrative expenses 1,330 1,029 1,032 1,080 Pre-opening expenses 21 20 12 14 Relocation, store closure and lease termination costs 4 6 2 4 Operating income 271 255 247 88 Interest expense — — — — Investment and other income 3 4 5 4 Income before income taxes 274 259 252 92 Provision for income taxes 107 101 98 36 Net income $ 167 $ 158 $ 154 $ 56 Basic earnings per share $ 0.46 $ 0.44 $ 0.43 $ 0.16 Diluted earnings per share $ 0.46 $ 0.44 $ 0.43 $ 0.16 Dividends declared per common share $ 0.13 $ 0.13 $ 0.13 $ 0.13 (1) Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 25, 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, 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. |
Guarantor Financial Statements
Guarantor Financial Statements | 12 Months Ended |
Sep. 25, 2016 | |
Guarantor Financial Statements [Abstract] | |
Guarantor Financial Statements [Text Block] | Guarantor Financial Statement Information The Notes issued on December 3, 2015 are fully and unconditionally guaranteed, jointly and severally, on an unsecured, unsubordinated basis by certain wholly owned domestic subsidiaries of the Company (the “Guarantors”). Supplemental condensed consolidating financial information of the Company, including such information for the Guarantors, is presented below. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the non-Guarantor subsidiaries operated as independent entities. Investments in subsidiaries are presented using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Separate financial statements of the Guarantors are not provided as the consolidating financial information contained herein provides a more meaningful disclosure to allow investors to determine the nature of the assets held by, and the operations of, the combined groups. Consolidated Balance Sheets (In millions) September 25, 2016 Assets Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Current assets: Cash and cash equivalents $ — $ 254 $ 97 $ — $ 351 Short-term investments - available-for-sale securities — 379 — — 379 Restricted cash — 114 8 — 122 Accounts receivable — 216 26 — 242 Intercompany receivable — 649 — (649 ) — Merchandise inventories — 441 76 — 517 Prepaid expenses and other current assets — 150 17 — 167 Deferred income taxes — 197 — — 197 Total current assets — 2,400 224 (649 ) 1,975 Property and equipment, net of accumulated depreciation and amortization — 3,063 379 — 3,442 Long-term investments - available-for-sale securities — — — — — Investments in consolidated subsidiaries 4,593 103 472 (5,168 ) — Goodwill — 702 8 — 710 Intangible assets, net of accumulated amortization 1 63 10 — 74 Deferred income taxes — 94 6 — 100 Other assets — 16 24 — 40 Total assets $ 4,594 $ 6,441 $ 1,123 $ (5,817 ) $ 6,341 Liabilities and Shareholders’ Equity Current liabilities: Current installments of capital lease obligations $ — $ 3 $ — $ — $ 3 Accounts payable — 227 80 — 307 Intercompany payable 316 — 333 (649 ) — Accrued payroll, bonus and other benefits due team members — 381 26 — 407 Dividends payable 43 — — — 43 Other current liabilities 17 536 28 — 581 Total current liabilities 376 1,147 467 (649 ) 1,341 Long-term capital lease obligations, less current installments 993 48 7 — 1,048 Deferred lease liabilities — 592 48 — 640 Other long-term liabilities — 87 1 — 88 Total liabilities 1,369 1,874 523 (649 ) 3,117 Commitments and contingencies Total shareholders’ equity 3,225 4,567 600 (5,168 ) 3,224 Total liabilities and shareholders’ equity $ 4,594 $ 6,441 $ 1,123 $ (5,817 ) $ 6,341 Consolidated Balance Sheets (In millions) September 27, 2015 Assets Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Current assets: Cash and cash equivalents $ — $ 147 $ 90 $ — $ 237 Short-term investments - available-for-sale securities — 155 — — 155 Restricted cash — 115 12 — 127 Accounts receivable — 194 24 — 218 Intercompany receivable — 533 — (533 ) — Merchandise inventories — 430 70 — 500 Prepaid expenses and other current assets — 96 12 — 108 Deferred income taxes — 199 — — 199 Total current assets — 1,869 208 (533 ) 1,544 Property and equipment, net of accumulated depreciation and amortization — 2,832 331 — 3,163 Long-term investments - available-for-sale securities — 63 — — 63 Investments in consolidated subsidiaries 4,060 93 445 (4,598 ) — Goodwill — 703 7 — 710 Intangible assets, net of accumulated amortization — 69 10 — 79 Deferred income taxes — 141 3 — 144 Other assets 10 18 10 — 38 Total assets $ 4,070 $ 5,788 $ 1,014 $ (5,131 ) $ 5,741 Liabilities and Shareholders’ Equity Current liabilities: Current installments of capital lease obligations $ — $ 3 $ — $ — $ 3 Accounts payable — 216 79 — $ 295 Intercompany payable 256 — 277 (533 ) $ — Accrued payroll, bonus and other benefits due team members — 411 25 — $ 436 Dividends payable 45 — — — $ 45 Other current liabilities — 452 21 — $ 473 Total current liabilities 301 1,082 402 (533 ) 1,252 Long-term capital lease obligations, less current installments — 55 7 — 62 Deferred lease liabilities — 544 43 — 587 Other long-term liabilities — 69 2 — 71 Total liabilities 301 1,750 454 (533 ) 1,972 Commitments and contingencies Total shareholders’ equity 3,769 4,038 560 (4,598 ) 3,769 Total liabilities and shareholders’ equity $ 4,070 $ 5,788 $ 1,014 $ (5,131 ) $ 5,741 Consolidated Statements of Operations (In millions) September 25, 2016 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Sales $ — $ 14,928 $ 949 $ (153 ) $ 15,724 Cost of goods sold and occupancy costs — 9,798 664 (149 ) 10,313 Gross profit — 5,130 285 (4 ) 5,411 Selling, general and administrative expenses — 4,224 253 — 4,477 Pre-opening expenses — 58 6 — 64 Relocation, store closure and lease termination costs — 10 3 — 13 Operating income — 838 23 (4 ) 857 Interest expense (41 ) — — — (41 ) Investment and other income (expense) (1 ) 12 (4 ) 4 11 Equity in net income of subsidiaries 533 10 28 (571 ) — Income before income taxes 491 860 47 (571 ) 827 Provision for income taxes (16 ) 329 7 — 320 Net income $ 507 $ 531 $ 40 $ (571 ) $ 507 September 27, 2015 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Sales $ — $ 14,565 $ 968 $ (144 ) $ 15,389 Cost of goods sold and occupancy costs — 9,433 679 (139 ) 9,973 Gross profit — 5,132 289 (5 ) 5,416 Selling, general and administrative expenses — 4,182 290 — 4,472 Pre-opening expenses — 65 2 — 67 Relocation, store closure and lease termination costs — 15 1 — 16 Operating income (loss) — 870 (4 ) (5 ) 861 Interest expense — — — — — Investment and other income (expense) — 16 (3 ) 4 17 Equity in net income of subsidiaries 536 9 38 (583 ) — Income before income taxes 536 895 31 (584 ) 878 Provision for income taxes — 345 (3 ) — 342 Net income $ 536 $ 550 $ 34 $ (584 ) $ 536 September 28, 2014 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Sales $ — $ 13,408 $ 920 $ (134 ) $ 14,194 Cost of goods sold and occupancy costs — 8,648 632 (130 ) 9,150 Gross profit — 4,760 288 (4 ) 5,044 Selling, general and administrative expenses — 3,780 252 — 4,032 Pre-opening expenses — 60 7 — 67 Relocation, store closure and lease termination costs — 10 1 — 11 Operating income — 910 28 (4 ) 934 Interest expense — — — — — Investment and other income (expense) — 10 (2 ) 4 12 Equity in net income of subsidiaries 579 11 48 (638 ) — Income before income taxes 579 931 74 (638 ) 946 Provision for income taxes — 357 10 — 367 Net income $ 579 $ 574 $ 64 $ (638 ) $ 579 Consolidated Statements of Comprehensive Income (In millions) September 25, 2016 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net income $ 507 $ 531 $ 40 $ (571 ) $ 507 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — (12 ) 8 — (4 ) Other comprehensive income (loss), net of tax — (12 ) 8 — (4 ) Comprehensive income $ 507 $ 519 $ 48 $ (571 ) $ 503 September 27, 2015 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net income $ 536 $ 550 $ 34 $ (584 ) $ 536 Other comprehensive loss, net of tax: Foreign currency translation adjustments — (7 ) (14 ) — (21 ) Other comprehensive loss, net of tax — (7 ) (14 ) — (21 ) Comprehensive income $ 536 $ 543 $ 20 $ (584 ) $ 515 September 28, 2014 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net income $ 579 $ 574 $ 64 $ (638 ) $ 579 Other comprehensive loss, net of tax: Foreign currency translation adjustments — — (8 ) — (8 ) Other comprehensive loss, net of tax — — (8 ) — (8 ) Comprehensive income $ 579 $ 574 $ 56 $ (638 ) $ 571 Condensed Consolidated Statements of Cash Flows (In millions) September 25, 2016 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net cash provided by (used in) operating activities $ (27 ) $ 1,114 $ 29 $ — $ 1,116 Cash flows from investing activities Purchases of property, plant and equipment — (643 ) (73 ) — (716 ) Purchases of available-for-sale securities — (593 ) — — (593 ) Sales and maturities of available-for-sale securities — 431 — — 431 Purchases of intangible assets — (2 ) — — (2 ) Increase in restricted cash — 4 — — 4 Payment for purchase of acquired entities, net of cash acquired — — (11 ) — (11 ) Intercompany activity 140 — — (140 ) — Other investing activities — (8 ) — — (8 ) Net cash provided by (used in) investing activities 140 (811 ) (84 ) (140 ) (895 ) Cash flows from financing activities Purchases of treasury stock (944 ) — — — (944 ) Common stock dividends paid (177 ) — — — (177 ) Issuance of common stock 19 — — — 19 Excess tax benefit related to exercise of team member stock options 4 — — — 4 Proceeds from long-term borrowings 999 — — — 999 Proceed for revolving line of credit 300 — — — 300 Payments on long-term debt and capital lease obligations (306 ) — — — (306 ) Intercompany activity — (196 ) 56 140 — Other financing activities (8 ) — — — (8 ) Net cash provided by (used in) financing activities (113 ) (196 ) 56 140 (113 ) Effect of exchange rate changes on cash and cash equivalents — — 6 — 6 Net change in cash and cash equivalents — 107 7 — 114 Cash and cash equivalents at beginning of period — 147 90 — 237 Cash and cash equivalents at end of period $ — $ 254 $ 97 $ — $ 351 Condensed Consolidated Statements of Cash Flows (In millions) September 27, 2015 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net cash provided by operating activities $ — $ 1,095 $ 34 $ — $ 1,129 Cash flows from investing activities Purchases of property, plant and equipment — (803 ) (48 ) — (851 ) Purchases of available-for-sale securities — (494 ) — — (494 ) Sales and maturities of available-for-sale securities — 928 — — 928 Purchases of intangible assets — (3 ) — — (3 ) Increase in restricted cash — (19 ) — — (19 ) Payment for purchase of acquired entities, net of cash acquired — — (4 ) — (4 ) Intercompany activity 622 — — (622 ) — Other investing activities — (12 ) — — (12 ) Net cash provided by (used in) investing activities 622 (403 ) (52 ) (622 ) (455 ) Cash flows from financing activities Purchases of treasury stock (513 ) — — — (513 ) Common stock dividends paid (184 ) — — — (184 ) Issuance of common stock 66 — — — 66 Excess tax benefit related to exercise of team member stock options 11 — — — 11 Proceeds from long-term borrowings — — — — — Proceeds from revolving line of credit — — — — — Payments on long-term debt and capital lease obligations (1 ) — — — (1 ) Intercompany activity — (641 ) 19 622 — Other financing activities (1 ) — — — (1 ) Net cash provided by (used in) financing activities (622 ) (641 ) 19 622 (622 ) Effect of exchange rate changes on cash and cash equivalents — — (5 ) — (5 ) Net change in cash and cash equivalents — 51 (4 ) — 47 Cash and cash equivalents at beginning of period — 96 94 — 190 Cash and cash equivalents at end of period $ — $ 147 $ 90 $ — $ 237 Condensed Consolidated Statements of Cash Flows (In millions) September 28, 2014 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net cash provided by operating activities $ — $ 977 $ 111 $ — $ 1,088 Cash flows from investing activities Purchases of property, plant and equipment — (623 ) (87 ) — (710 ) Purchases of available-for-sale securities — (720 ) — — (720 ) Sales and maturities of available-for-sale securities — 1,054 — — 1,054 Purchases of intangible assets — (20 ) — — (20 ) Decrease in restricted cash — 2 — — 2 Payment for purchase of acquired entities, net of cash acquired — (32 ) (41 ) — (73 ) Intercompany activity 698 — — (698 ) — Other investing activities — (17 ) — — (17 ) Net cash provided by (used in) investing activities 698 (356 ) (128 ) (698 ) (484 ) Cash flows from financing activities Purchases of treasury stock (578 ) — — — (578 ) Common stock dividends paid (170 ) — — — (170 ) Issuance of common stock 42 — — — 42 Excess tax benefit related to exercise of team member stock options 9 — — — 9 Proceeds from long-term borrowings — — — — — Proceeds from revolving line of credit — — — — — Payments on long-term debt and capital lease obligations (1 ) — — — (1 ) Intercompany activity — (730 ) 32 698 — Other financing activities — — — — — Net cash provided by (used in) financing activities (698 ) (730 ) 32 698 (698 ) Effect of exchange rate changes on cash and cash equivalents — — (6 ) — (6 ) Net change in cash and cash equivalents — (109 ) 9 — (100 ) Cash and cash equivalents at beginning of period — 205 85 — 290 Cash and cash equivalents at end of period $ — $ 96 $ 94 $ — $ 190 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 25, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Subsequent to the end of fiscal year 2016, the Company announced certain structure and leadership changes including the resignation of Walter Robb, the Company’s Co-Chief Executive Officer effective December 31, 2016. In the first quarter of fiscal year 2017, the Company expects to incur a charge of approximately $13 million associated with Mr. Robb’s separation agreement. Mr. Robb will remain on the Company’s Board of Directors and will serve as a senior advisor of the Company from January 1, 2017 to September 24, 2017. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 25, 2016 | |
Accounting Policies [Abstract] | |
Definition of Fiscal Year | Definition of Fiscal Year The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal years 2016 , 2015 and 2014 were 52-week years. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant majority-owned subsidiaries are consolidated on a line-by-line basis, and all significant intercompany accounts and transactions are eliminated upon consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. |
Investments | Investments Available-for-sale investments are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale investments are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. A decline in the fair value of any available-for-sale security below cost that is deemed to be other than temporary results in a reduction of the carrying amount to fair value. The impairment is charged to earnings and a new cost basis of the security is established. The Company considers several factors when determining whether an impairment is other than temporary, including the extent and duration of the decline in fair value and whether it is more likely than not that we will be required to sell the security before recovery of its basis. Cost basis is established and maintained utilizing the specific identification method. The Company also holds certain equity interests accounted for using the cost method of accounting. Equity investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and classified as “Other assets” on the Consolidated Balance Sheet. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. Additionally, the Company holds certain equity interests accounted for using the equity method of accounting. The Company’s share of income and losses from equity method investments is included in “Selling, general and administrative expenses” on the Consolidated Statements of Operations. |
Restricted Cash | Restricted Cash Restricted cash primarily relates to cash held as collateral to support a portion of our projected workers’ compensation obligations. Additionally, the Company holds restricted cash as a rent guarantee on certain operating leases through fiscal year 2020 . |
Accounts Receivable | Accounts Receivable Accounts receivable are shown net of related allowances and consist primarily of credit card receivables, vendor receivables, customer purchases, and occupancy-related receivables. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method and was not material in fiscal year 2016 or 2015 . |
Inventories | Inventories The Company values inventories at the lower of cost or market. Cost was determined using the dollar value retail last-in, first-out (“LIFO”) method for approximately 91.8% and 92.2% of inventories in fiscal years 2016 and 2015 , respectively. Under the LIFO method, the cost assigned to items sold is based on the cost of the most recent items purchased. As a result, the costs of the first items purchased remain in inventory and are used to value ending inventory. The excess of estimated current costs over LIFO carrying value, or LIFO reserve, was approximately $42 million and $49 million at September 25, 2016 and September 27, 2015 , respectively. Costs for remaining inventories are determined by the first-in, first-out method. Cost before the LIFO adjustment is principally determined using the item cost method, which is calculated by counting each item in inventory, assigning costs to each of these items based on the actual purchase cost (net of vendor allowances) of each item and recording the actual cost of items sold. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation and amortization. The Company provides depreciation of equipment over the estimated useful lives (generally 3 to 15 years) using the straight-line method, and provides amortization of leasehold improvements and real estate assets under capital leases on a straight-line basis over the shorter of the estimated useful lives of the improvements or the expected terms of the related leases. The Company provides depreciation of buildings over the estimated useful lives (generally 20 to 50 years) using the straight-line method. Costs related to a projected site determined to be unsatisfactory and general site selection costs that cannot be identified with a specific store location are charged to operations currently. The Company recognizes a liability for the fair value of a conditional asset retirement obligation when the obligation is incurred. Repair and maintenance costs are expensed as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in earnings. |
Leases | Leases The Company generally leases stores, non-retail facilities and administrative offices under operating leases. Store lease agreements generally include rent holidays, rent escalation clauses and contingent rent provisions for percentage of sales in excess of specified levels. We recognize rent on a straight-line basis over the expected term of the lease, which includes rent holiday periods and scheduled rent increases. The expected lease term begins with the date the Company has the right to possess the leased space for construction and other purposes. The expected lease term may also include the exercise of renewal options if the exercise of the option is determined to be reasonably assured. The expected lease term is also used in the determination of whether a store lease is a capital or operating lease. Amortization of land and building under capital lease is included with occupancy costs, while the amortization of equipment under capital lease is included with depreciation expense. Additionally, we review leases for which we are involved in construction to determine whether build-to-suit and sale-leaseback criteria are met. For those leases that trigger specific build-to-suit accounting, developer assets are recorded during the construction period with an offsetting liability. Developer assets recorded as of September 25, 2016 totaling approximately $14 million , with the offsetting liability included in the “Other current liabilities” line item on the Consolidated Balance Sheets. As of September 27, 2015 , developer assets were not material. Sale-leaseback transactions are recorded as financing lease obligations. We record tenant improvement allowances and rent holidays as deferred rent liabilities, and amortize the deferred rent over the expected lease term to rent. We record rent liabilities for contingent percentage of sales lease provisions when we determine that it is probable that the specified levels as defined by the lease will be reached. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill consists of the excess of cost of acquired enterprises over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is reviewed for impairment annually at the Company’s fiscal year end, or more frequently if impairment indicators arise, on a reporting unit level. We allocate goodwill to one reporting unit for goodwill impairment testing. A qualitative assessment, based on macroeconomic factors, industry and market conditions and company-specific performance, is performed to determine whether it is more likely than not that the fair value of the reporting unit is impaired. If it is more likely than not, we compare our fair value, which is determined utilizing both a market value method and discounted projected future cash flows, to our carrying value for the purpose of identifying impairment. Intangible assets include acquired leasehold rights, favorable lease assets, trade names, brand names, patents, liquor licenses, license agreements, and non-competition agreements. The Company amortizes definite-lived intangible assets on a straight-line basis over the period the intangible asset is expected to generate cash flows, generally the life of the related agreement. Currently, the weighted average life is approximately 15 years for contract-based intangible assets and approximately 1 years for marketing-related and other identifiable intangible assets. Indefinite-lived intangible assets are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate the carrying amount of an intangible asset may not be recoverable. |
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of | Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of The Company evaluates long-lived assets for impairment whenever events or changes in circumstances, such as unplanned negative cash flow, short lease life, or a plan to close is established, indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are determined to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds the fair value of the assets. The fair value, based on hierarchy input Level 3, is determined using management’s best estimate based on a discounted cash flow model based on future store operating results using internal projections of future net sales and comparable store sales, or based on a review of the future benefit the Company anticipates receiving from the related assets. Additionally for closing locations, the Company estimates net future cash flows based on its experience and knowledge of the area in which the closed property is located and, when necessary, utilizes local real estate brokers. Estimates of future net sales and comparable store sales may vary based upon current and anticipated business trends, including increased competition and the opening of new stores that cannibalize store sales in existing areas. Changes in these forecasts could significantly change the amount of impairment recorded, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. When the Company impairs assets related to an operating location, a charge to write down the related assets is included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations. When the Company commits to relocate, close, or dispose of a location, a charge to write down the related assets to their estimated recoverable value is included in the “Relocation, store closure and lease termination costs” line item on the Consolidated Statements of Operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in generally accepted accounting principles. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: • Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities generally consisting of state and local municipal obligations and corporate bonds and commercial paper which hold high credit ratings. These instruments are valued using a series of multi-dimensional relational models and series of matrices with standard inputs obtained from readily available pricing sources and other observable market data, such as benchmark yields and base spread. Investments are stated at fair value with unrealized gains and losses, net of related tax effect, included as a component of shareholders’ equity until realized. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. The carrying amounts of accrued payroll, bonuses and other benefits due team members, and other accrued expenses approximate fair value because of their short maturities. Store closure reserves and estimated workers’ compensation claims are recorded at net present value to approximate fair value. |
Insurance and Self-Insurance Reserves | Insurance and Self-Insurance Reserves The Company uses a combination of insurance and self-insurance plans to provide for the potential liabilities for workers’ compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability, and employee health care benefits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. The Company had insurance liabilities totaling approximately $180 million and $170 million at September 25, 2016 and September 27, 2015 , respectively, included in the “Other current liabilities” line item on the Consolidated Balance Sheets. |
Reserves for Closed Properties | Reserves for Closed Properties The Company maintains reserves for retail stores and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using the present value of the remaining noncancelable lease payments and lease termination fees after the closing date, net of estimated subtenant income. The closed property lease liabilities are expected to be paid over the remaining lease terms, which generally range from four months to eight years . The Company estimates subtenant income and future cash flows based on the Company’s experience and knowledge of the area in which the closed property is located, the Company’s previous efforts to dispose of similar assets and existing economic conditions. Reserves for closed properties are included in the “Other current liabilities” and “Other long-term liabilities” line items on the Consolidated Balance Sheets. The reserves for closed properties include management’s estimates for lease subsidies, lease terminations and future payments on exited real estate. Adjustments to closed property reserves primarily relate to changes in existing economic conditions, subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. |
Revenue Recognition | Revenue Recognition We recognize revenue for sales of our products at the point of sale. Discounts provided to customers at the point of sale are recognized as a reduction in sales as the products are sold. Sales taxes are not included in revenue. |
Cost of Goods Sold and Occupancy Costs | Cost of Goods Sold and Occupancy Costs Cost of goods sold includes cost of inventory sold during the period (net of discounts and allowances), distribution and food preparation costs, and shipping and handling costs. The Company receives various rebates from third-party vendors in the form of purchase or sales volume discounts and payments under cooperative advertising agreements. Purchase volume discounts are calculated based on actual purchase volumes. Volume discounts and cooperative advertising discounts in excess of identifiable advertising costs are recognized as a reduction of cost of goods sold when the related merchandise is sold. The Company utilizes forward purchases to limit its exposures to changes in commodity prices. All forward purchase commitments are established at current prices and recorded through cost of goods sold at settlement. Occupancy costs include store rental costs, property taxes, utility costs, repair and maintenance costs, and property insurance. Our largest supplier, United Natural Foods, Inc., accounted for approximately 32.5% , 32.0% and 31.8% of our total purchases in fiscal years 2016 , 2015 and 2014 , respectively. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses consist of retail operational expenses, marketing, and corporate and regional administrative support costs. Advertising expense for fiscal years 2016 , 2015 and 2014 was approximately $96 million , $89 million and $63 million , respectively. Advertising costs are charged to expense when incurred, except for certain production costs that are charged to expense when the advertising first takes place. |
Pre-opening Expenses | Pre-opening Expenses Pre-opening expenses include rent expense incurred during construction of new facilities and costs related to new location openings, including costs associated with hiring and training personnel, smallwares, supplies and other miscellaneous costs. Rent expense is generally incurred approximately nine months prior to a store’s opening date. Other pre-opening expenses are incurred primarily in the 60 days prior to a new store opening. Pre-opening costs are expensed as incurred. |
Relocation, Store Closure and Lease Termination Costs | Relocation, Store Closure and Lease Termination Costs Relocation costs consist of moving costs, estimated remaining net lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with replaced facilities. Store closure costs consist of estimated remaining lease payments, accelerated depreciation costs, related asset impairment, and other costs associated with closed facilities. Lease termination costs consist of estimated remaining net lease payments for terminated leases and idle properties, and associated asset impairments. |
Share-Based Payments | Share-Based Payments The Company maintains several share-based incentive plans. We grant both options to purchase common stock and restricted common stock under our Whole Foods Market 2009 Stock Incentive Plan. Options outstanding are governed by the original terms and conditions of the grants, unless modified by a subsequent agreement. Options are granted at an option price equal to the market value of the stock at the grant date and generally vest ratably over a four - or nine -year period beginning one year from grant date and have a five , seven , or ten year term. The grant date is established once the Company’s Board of Directors approves the grant and all key terms have been determined. Stock option grant terms and conditions are communicated to team members within a relatively short period of time. The Company generally approves one primary stock option grant annually, occurring during a trading window. Restricted common stock is granted at the market price of the stock on the day of grant and generally vests over a four - or six -year period. The Company uses the Black-Scholes multiple option pricing model which requires extensive use of accounting judgment and financial estimates, including estimates of the expected term team members will retain their vested stock options before exercising them, the estimated volatility of the Company’s common stock price over the expected term, and the number of options that will be forfeited prior to the completion of their vesting requirements. The related share-based payment expense is recognized on a straight-line basis over the requisite service period. The tax savings resulting from tax deductions in excess of expense reflected in the Company’s financial statements are reflected as a financing cash flow. All full-time team members with a minimum of 400 hours of service may purchase our common stock through payroll deductions under the Company’s Team Member Stock Purchase Plan (“TMSPP”). The TMSPP provides for a 5% discount on the shares’ purchase date market value, which meets the share-based payment “Safe Harbor” provisions, and therefore is non-compensatory. As a result, no compensation expense is recognized for our team member stock purchase plan. |
Income Taxes | Income Taxes The Company recognizes deferred income tax assets and liabilities by applying statutory tax rates in effect at the balance sheet date to differences between the book basis and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Deferred tax assets and liabilities are adjusted to reflect changes in tax laws or rates in the period that includes the enactment date. The Company may recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained by the taxing authorities based on technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Significant accounting judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. The Company believes that its tax positions are consistent with applicable tax law, but certain positions may be challenged by taxing authorities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. In addition, we are subject to periodic audits and examinations by the IRS and other state and local taxing authorities. Although we believe that our estimates are reasonable, actual results could differ from these estimates. |
Treasury Stock | Treasury Stock Under the Company’s stock repurchase program, the Company can repurchase shares of the Company’s common stock on the open market that are held in treasury at cost. Shares held in treasury may be reissued to satisfy exercises of stock options and issuances of restricted stock awards. The Company does not currently intend to retire its treasury shares. The Company’s common stock has no par value. |
Earnings per Share | Earnings per Share Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the fiscal period. Diluted earnings per share are based on the weighted average number of common shares outstanding plus, where applicable, the additional common shares that would have been outstanding related to dilutive share-based awards using the treasury stock method. Dilutive potential common shares include outstanding stock options and unvested restricted stock awards. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of: net income; foreign currency translation adjustments; and unrealized gains and losses on available-for-sale securities, net of income tax, and is reflected in the Consolidated Statements of Comprehensive Income. |
Foreign Currency Translation | Foreign Currency Translation The Company’s operations in Canada and the U.K. use their local currency as their functional currency. Foreign currency transaction gains and losses related to Canadian intercompany operations are charged to net income in the period incurred. Foreign currency gains and losses were not material in fiscal year 2016 , 2015 or 2014 . Intercompany transaction gains and losses associated with our U.K. operations are excluded from the determination of net income since these transactions are considered long-term investments in nature. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average exchange rates during the fiscal year. Resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. Actual amounts could differ from those estimates. |
Reclassifications | Reclassifications Where appropriate, we have reclassified prior years’ financial statements to conform to current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting pronouncements: 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. Standard Description Effective Date Effect on financial statements and other significant matters 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. 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. Standard Description Effective Date Effect on financial statements and other significant matters 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. 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. |
Description of Business (Tables
Description of Business (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following is a summary of annual percentage sales and net long-lived assets by geographic area for the fiscal years indicated: 2016 2015 2014 Sales: United States 97.1 % 96.9 % 96.7 % Canada and United Kingdom 2.9 3.1 3.3 Total sales 100.0 % 100.0 % 100.0 % Long-lived assets, net: United States 97.5 % 97.4 % 96.0 % Canada and United Kingdom 2.5 2.6 4.0 Total long-lived assets, net 100.0 % 100.0 % 100.0 % |
Revenue from External Customers by Products and Services [Table Text Block] | The following is a summary of annual percentage sales by product category for the fiscal years indicated: 2016 2015 2014 Perishables: Prepared foods and bakery 18.9 % 19.0 % 19.2 % Other perishables 47.6 47.5 47.6 Total perishables 66.5 66.5 66.8 Non-perishables 33.5 33.5 33.2 Total sales 100.0 % 100.0 % 100.0 % |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements [Table Text Block] | The following table provides a brief description of recently issued accounting pronouncements: 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. Standard Description Effective Date Effect on financial statements and other significant matters 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. 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. Standard Description Effective Date Effect on financial statements and other significant matters 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. 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 (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 25, 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): September 25, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Cash equivalents: Money market fund $ 62 $ — $ — $ 62 Commercial paper — 30 — 30 Municipal bonds — 46 — 46 Marketable securities - available-for-sale: Commercial paper — 30 — 30 Municipal bonds — 26 — 26 Variable-rate demand notes — 323 — 323 Total $ 62 $ 455 $ — $ 517 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) | 12 Months Ended |
Sep. 25, 2016 | |
Investments [Abstract] | |
Marketable Securities [Table Text Block] | The Company held the following investments at fair value as of the dates indicated (in millions): September 25, September 27, Short-term marketable securities - available-for-sale: Asset-backed securities $ — $ 10 Certificates of deposit — 2 Commercial paper 30 — Corporate bonds — 15 Municipal bonds 26 128 Variable rate demand notes 323 — Total short-term marketable securities $ 379 $ 155 Long-term marketable securities - available-for-sale: Asset-backed securities $ — $ 3 Corporate bonds — 15 Municipal bonds — 45 Total long-term marketable securities $ — $ 63 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Balances of major classes of property and equipment were as follows (in millions): September 25, September 27, Land $ 161 $ 151 Buildings and leasehold improvements 3,390 3,116 Capitalized real estate leases 80 81 Fixtures and equipment 2,499 2,330 Construction in progress and equipment not yet in service 284 176 Property and equipment, gross 6,414 5,854 Less accumulated depreciation and amortization (2,972 ) (2,691 ) Property and equipment, net of accumulated depreciation and amortization $ 3,442 $ 3,163 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 25, 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): September 25, 2016 September 27, 2015 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Definite-lived contract-based $ 120 $ (55 ) $ 122 $ (50 ) Indefinite-lived contract-based 9 — 7 — Total $ 129 $ (55 ) $ 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): Fiscal year 2017 $ 6 Fiscal year 2018 5 Fiscal year 2019 5 Fiscal year 2020 5 Fiscal year 2021 4 Future fiscal years 40 Total $ 65 |
Reserves for Closed Properties
Reserves for Closed Properties (Tables) | 12 Months Ended |
Sep. 25, 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 fiscal years indicated (in millions): 2016 2015 Beginning balance $ 28 $ 31 Additions 6 9 Usage (10 ) (13 ) Adjustments 2 1 Ending balance $ 26 $ 28 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Long-term Debt, Unclassified [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): September 25, 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 58 65 Total long-term debt and capital lease obligations 1,051 65 Less: current installments (3 ) (3 ) Total long-term debt and capital lease obligations, less current installments $ 1,048 $ 62 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital and Operating Leases [Table Text Block] | Minimum rental commitments and sublease rental income required by all noncancelable leases are approximately as follows (in millions): Capital Operating Sublease Fiscal year 2017 $ 6 $ 433 $ 8 Fiscal year 2018 5 522 7 Fiscal year 2019 4 557 5 Fiscal year 2020 5 568 5 Fiscal year 2021 5 569 3 Future fiscal years 65 6,485 4 90 $ 9,134 $ 32 Less amounts representing interest 32 Net present value of capital lease obligations $ 58 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Components of income tax expense for the fiscal years indicated were as follows (in millions): 2016 2015 2014 Current federal income tax $ 223 $ 310 $ 359 Current state income tax 52 76 82 Current foreign income tax (1 ) (1 ) 2 Total current tax 274 385 443 Deferred federal income tax 41 (40 ) (66 ) Deferred state income tax 8 (2 ) (10 ) Deferred foreign income tax (3 ) (1 ) — Total deferred tax 46 (43 ) (76 ) Total income tax expense $ 320 $ 342 $ 367 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Actual income tax expense for the fiscal years indicated differed from the amount computed by applying statutory corporate income tax rates to income before income taxes as follows (in millions): 2016 2015 2014 Federal income tax based on statutory rates $ 289 $ 307 $ 331 Increase (reduction) in income taxes resulting from: Tax-exempt interest — (1 ) (1 ) Excess charitable contributions (10 ) (9 ) (8 ) Federal income tax credits (4 ) (3 ) (3 ) Other, net 10 2 2 Total federal income taxes 285 296 321 State income taxes, net of federal income tax benefit 39 48 47 Tax impact of foreign operations (4 ) (2 ) (1 ) Total income tax expense $ 320 $ 342 $ 367 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows (in millions): September 25, September 27, Deferred tax assets: Compensation-related costs $ 215 $ 207 Insurance-related costs 60 59 Inventories 5 2 Lease and other termination accruals 10 11 Lease negotiation legal fees 7 6 Rent differential 189 170 Tax basis of fixed assets in excess of financial basis 8 11 Net domestic and international operating loss carryforwards 14 23 Other 13 9 Gross deferred tax assets 521 498 Valuation allowance (23 ) (35 ) Deferred tax assets 498 463 Deferred tax liabilities: Financial basis of fixed assets in excess of tax basis (197 ) (117 ) Capitalized costs expensed for tax purposes (4 ) (3 ) Deferred tax liabilities (201 ) (120 ) Net deferred tax asset $ 297 $ 343 |
Summary of Net Deferred Tax Assets Classification [Table Text Block] | Deferred taxes have been classified on the Consolidated Balance Sheets as follows (in millions): September 25, September 27, Current assets $ 197 $ 199 Noncurrent assets 100 144 Net deferred tax asset $ 297 $ 343 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | The following table provides a summary of dividends declared per common share during fiscal years 2016 and 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 0.135 July 1, 2016 July 12, 2016 43 September 22, 2016 0.135 October 3, 2016 October 14, 2016 43 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 0.13 July 2, 2015 July 14, 2015 47 September 15, 2015 0.13 October 2, 2015 October 13, 2015 45 (1) Dividend accrued at September 25, 2016 |
Schedule of Share Repurchase Programs [Table Text Block] | 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 $ 556 $ 444 |
Schedule of Shares Repurchased [Table Text Block] | Share repurchase activity for the fiscal years indicated was as follows (in millions, except per share amounts): 2016 2015 Number of common shares acquired 31.7 13.8 Average price per common share acquired $ 29.82 $ 37.06 Total cost of common shares acquired $ 944 $ 513 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 25, 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): 2016 2015 2014 Net income (numerator for basic and diluted earnings per share) $ 507 $ 536 $ 579 Weighted average common shares outstanding (denominator for basic earnings per share) 326.1 358.5 367.8 Incremental common shares attributable to dilutive effect of share-based awards 0.8 2.3 2.7 Weighted average common shares outstanding and potential additional common shares outstanding(denominator for diluted earnings per share) 326.9 360.8 370.5 Basic earnings per share $ 1.55 $ 1.49 $ 1.57 Diluted earnings per share $ 1.55 $ 1.48 $ 1.56 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes stock option activity (in millions, except per share amounts and contractual lives in years): Number Weighted Weighted Aggregate Outstanding options at September 29, 2013 19.2 $ 36.90 Options granted 5.3 40.25 Options exercised (1.5 ) 24.13 Options expired (0.1 ) 36.10 Options forfeited (0.6 ) 42.32 Outstanding options at September 28, 2014 22.3 $ 38.37 Options granted 5.3 44.30 Options exercised (2.2 ) 27.81 Options expired (0.3 ) 42.88 Options forfeited (0.8 ) 42.66 Outstanding options at September 27, 2015 24.3 $ 40.45 Options granted 5.0 30.31 Options exercised (0.9 ) 15.23 Options expired (0.9 ) 41.73 Options forfeited (1.2 ) 41.72 Outstanding options at September 25, 2016 26.3 $ 39.35 4.17 $ 13 Vested/expected to vest at September 25, 2016 25.2 $ 39.53 4.09 $ 12 Exercisable options at September 25, 2016 14.8 $ 40.47 3.01 $ 11 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | A summary of stock options outstanding and exercisable at September 25, 2016 follows (share amounts in millions): Range of Exercise Prices Options Outstanding Options Exercisable From To Number of options outstanding Weighted average exercise price Weighted average remaining life (in years) Number of options exercisable Weighted average exercise price $ 20.42 $ 29.55 1.6 $ 20.49 1.62 1.4 $ 20.43 30.30 38.50 11.0 33.00 4.78 4.4 33.98 40.81 46.28 9.2 43.73 3.98 6.0 44.06 51.25 59.15 4.5 52.40 3.96 3.0 52.12 26.3 $ 39.35 4.17 14.8 $ 40.47 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2016 2015 2014 Expected dividend yield 1.73 % 1.00 % 0.95 % Risk-free interest rate 1.08 % 1.20 % 1.18 % Expected volatility 31.30 % 29.73 % 30.96 % Expected life, in years 4.05 4.04 4.04 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following tables set forth selected unaudited quarterly Consolidated Statements of Operations information for the fiscal years ended September 25, 2016 and September 27, 2015 (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year 2016 (1) Sales $ 4,829 $ 3,696 $ 3,703 $ 3,497 Cost of goods sold and occupancy costs 3,188 2,406 2,417 2,303 Gross profit 1,641 1,290 1,286 1,194 Selling, general and administrative expenses 1,373 1,028 1,057 1,019 Pre-opening expenses 13 18 18 15 Relocation, store closure and lease termination costs 3 3 2 5 Operating income 252 241 209 155 Interest expense (7 ) (11 ) (12 ) (11 ) Investment and other income (expense) 4 5 (1 ) 3 Income before income taxes 249 235 196 147 Provision for income taxes 92 93 76 59 Net income $ 157 $ 142 $ 120 $ 88 Basic earnings per share $ 0.47 $ 0.44 $ 0.37 $ 0.28 Diluted earnings per share $ 0.46 $ 0.44 $ 0.37 $ 0.28 Dividends declared per common share $ 0.135 $ 0.135 $ 0.135 $ 0.135 First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year 2015 (1) Sales $ 4,671 $ 3,647 $ 3,632 $ 3,438 Cost of goods sold and occupancy costs 3,045 2,337 2,339 2,252 Gross profit 1,626 1,310 1,293 1,186 Selling, general and administrative expenses 1,330 1,029 1,032 1,080 Pre-opening expenses 21 20 12 14 Relocation, store closure and lease termination costs 4 6 2 4 Operating income 271 255 247 88 Interest expense — — — — Investment and other income 3 4 5 4 Income before income taxes 274 259 252 92 Provision for income taxes 107 101 98 36 Net income $ 167 $ 158 $ 154 $ 56 Basic earnings per share $ 0.46 $ 0.44 $ 0.43 $ 0.16 Diluted earnings per share $ 0.46 $ 0.44 $ 0.43 $ 0.16 Dividends declared per common share $ 0.13 $ 0.13 $ 0.13 $ 0.13 (1) Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Guarantor Financial Statements
Guarantor Financial Statements (Tables) | 12 Months Ended |
Sep. 25, 2016 | |
Guarantor Financial Statements [Abstract] | |
Consolidated Statements of Balance Sheets with Guarantor Information [Table Text Block] | Consolidated Balance Sheets (In millions) September 25, 2016 Assets Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Current assets: Cash and cash equivalents $ — $ 254 $ 97 $ — $ 351 Short-term investments - available-for-sale securities — 379 — — 379 Restricted cash — 114 8 — 122 Accounts receivable — 216 26 — 242 Intercompany receivable — 649 — (649 ) — Merchandise inventories — 441 76 — 517 Prepaid expenses and other current assets — 150 17 — 167 Deferred income taxes — 197 — — 197 Total current assets — 2,400 224 (649 ) 1,975 Property and equipment, net of accumulated depreciation and amortization — 3,063 379 — 3,442 Long-term investments - available-for-sale securities — — — — — Investments in consolidated subsidiaries 4,593 103 472 (5,168 ) — Goodwill — 702 8 — 710 Intangible assets, net of accumulated amortization 1 63 10 — 74 Deferred income taxes — 94 6 — 100 Other assets — 16 24 — 40 Total assets $ 4,594 $ 6,441 $ 1,123 $ (5,817 ) $ 6,341 Liabilities and Shareholders’ Equity Current liabilities: Current installments of capital lease obligations $ — $ 3 $ — $ — $ 3 Accounts payable — 227 80 — 307 Intercompany payable 316 — 333 (649 ) — Accrued payroll, bonus and other benefits due team members — 381 26 — 407 Dividends payable 43 — — — 43 Other current liabilities 17 536 28 — 581 Total current liabilities 376 1,147 467 (649 ) 1,341 Long-term capital lease obligations, less current installments 993 48 7 — 1,048 Deferred lease liabilities — 592 48 — 640 Other long-term liabilities — 87 1 — 88 Total liabilities 1,369 1,874 523 (649 ) 3,117 Commitments and contingencies Total shareholders’ equity 3,225 4,567 600 (5,168 ) 3,224 Total liabilities and shareholders’ equity $ 4,594 $ 6,441 $ 1,123 $ (5,817 ) $ 6,341 Consolidated Balance Sheets (In millions) September 27, 2015 Assets Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Current assets: Cash and cash equivalents $ — $ 147 $ 90 $ — $ 237 Short-term investments - available-for-sale securities — 155 — — 155 Restricted cash — 115 12 — 127 Accounts receivable — 194 24 — 218 Intercompany receivable — 533 — (533 ) — Merchandise inventories — 430 70 — 500 Prepaid expenses and other current assets — 96 12 — 108 Deferred income taxes — 199 — — 199 Total current assets — 1,869 208 (533 ) 1,544 Property and equipment, net of accumulated depreciation and amortization — 2,832 331 — 3,163 Long-term investments - available-for-sale securities — 63 — — 63 Investments in consolidated subsidiaries 4,060 93 445 (4,598 ) — Goodwill — 703 7 — 710 Intangible assets, net of accumulated amortization — 69 10 — 79 Deferred income taxes — 141 3 — 144 Other assets 10 18 10 — 38 Total assets $ 4,070 $ 5,788 $ 1,014 $ (5,131 ) $ 5,741 Liabilities and Shareholders’ Equity Current liabilities: Current installments of capital lease obligations $ — $ 3 $ — $ — $ 3 Accounts payable — 216 79 — $ 295 Intercompany payable 256 — 277 (533 ) $ — Accrued payroll, bonus and other benefits due team members — 411 25 — $ 436 Dividends payable 45 — — — $ 45 Other current liabilities — 452 21 — $ 473 Total current liabilities 301 1,082 402 (533 ) 1,252 Long-term capital lease obligations, less current installments — 55 7 — 62 Deferred lease liabilities — 544 43 — 587 Other long-term liabilities — 69 2 — 71 Total liabilities 301 1,750 454 (533 ) 1,972 Commitments and contingencies Total shareholders’ equity 3,769 4,038 560 (4,598 ) 3,769 Total liabilities and shareholders’ equity $ 4,070 $ 5,788 $ 1,014 $ (5,131 ) $ 5,741 |
Consolidated Statements of Operations with Guarantor Information [Table Text Block] | Consolidated Statements of Operations (In millions) September 25, 2016 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Sales $ — $ 14,928 $ 949 $ (153 ) $ 15,724 Cost of goods sold and occupancy costs — 9,798 664 (149 ) 10,313 Gross profit — 5,130 285 (4 ) 5,411 Selling, general and administrative expenses — 4,224 253 — 4,477 Pre-opening expenses — 58 6 — 64 Relocation, store closure and lease termination costs — 10 3 — 13 Operating income — 838 23 (4 ) 857 Interest expense (41 ) — — — (41 ) Investment and other income (expense) (1 ) 12 (4 ) 4 11 Equity in net income of subsidiaries 533 10 28 (571 ) — Income before income taxes 491 860 47 (571 ) 827 Provision for income taxes (16 ) 329 7 — 320 Net income $ 507 $ 531 $ 40 $ (571 ) $ 507 September 27, 2015 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Sales $ — $ 14,565 $ 968 $ (144 ) $ 15,389 Cost of goods sold and occupancy costs — 9,433 679 (139 ) 9,973 Gross profit — 5,132 289 (5 ) 5,416 Selling, general and administrative expenses — 4,182 290 — 4,472 Pre-opening expenses — 65 2 — 67 Relocation, store closure and lease termination costs — 15 1 — 16 Operating income (loss) — 870 (4 ) (5 ) 861 Interest expense — — — — — Investment and other income (expense) — 16 (3 ) 4 17 Equity in net income of subsidiaries 536 9 38 (583 ) — Income before income taxes 536 895 31 (584 ) 878 Provision for income taxes — 345 (3 ) — 342 Net income $ 536 $ 550 $ 34 $ (584 ) $ 536 September 28, 2014 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Sales $ — $ 13,408 $ 920 $ (134 ) $ 14,194 Cost of goods sold and occupancy costs — 8,648 632 (130 ) 9,150 Gross profit — 4,760 288 (4 ) 5,044 Selling, general and administrative expenses — 3,780 252 — 4,032 Pre-opening expenses — 60 7 — 67 Relocation, store closure and lease termination costs — 10 1 — 11 Operating income — 910 28 (4 ) 934 Interest expense — — — — — Investment and other income (expense) — 10 (2 ) 4 12 Equity in net income of subsidiaries 579 11 48 (638 ) — Income before income taxes 579 931 74 (638 ) 946 Provision for income taxes — 357 10 — 367 Net income $ 579 $ 574 $ 64 $ (638 ) $ 579 |
Consolidated Statements of Comprehensive Income with Guarantor Information [Table Text Block] | Consolidated Statements of Comprehensive Income (In millions) September 25, 2016 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net income $ 507 $ 531 $ 40 $ (571 ) $ 507 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — (12 ) 8 — (4 ) Other comprehensive income (loss), net of tax — (12 ) 8 — (4 ) Comprehensive income $ 507 $ 519 $ 48 $ (571 ) $ 503 September 27, 2015 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net income $ 536 $ 550 $ 34 $ (584 ) $ 536 Other comprehensive loss, net of tax: Foreign currency translation adjustments — (7 ) (14 ) — (21 ) Other comprehensive loss, net of tax — (7 ) (14 ) — (21 ) Comprehensive income $ 536 $ 543 $ 20 $ (584 ) $ 515 September 28, 2014 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net income $ 579 $ 574 $ 64 $ (638 ) $ 579 Other comprehensive loss, net of tax: Foreign currency translation adjustments — — (8 ) — (8 ) Other comprehensive loss, net of tax — — (8 ) — (8 ) Comprehensive income $ 579 $ 574 $ 56 $ (638 ) $ 571 |
Condensed Consolidated Statements of Cash Flows with Guarantor Information [Table Text Block] | Condensed Consolidated Statements of Cash Flows (In millions) September 25, 2016 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net cash provided by (used in) operating activities $ (27 ) $ 1,114 $ 29 $ — $ 1,116 Cash flows from investing activities Purchases of property, plant and equipment — (643 ) (73 ) — (716 ) Purchases of available-for-sale securities — (593 ) — — (593 ) Sales and maturities of available-for-sale securities — 431 — — 431 Purchases of intangible assets — (2 ) — — (2 ) Increase in restricted cash — 4 — — 4 Payment for purchase of acquired entities, net of cash acquired — — (11 ) — (11 ) Intercompany activity 140 — — (140 ) — Other investing activities — (8 ) — — (8 ) Net cash provided by (used in) investing activities 140 (811 ) (84 ) (140 ) (895 ) Cash flows from financing activities Purchases of treasury stock (944 ) — — — (944 ) Common stock dividends paid (177 ) — — — (177 ) Issuance of common stock 19 — — — 19 Excess tax benefit related to exercise of team member stock options 4 — — — 4 Proceeds from long-term borrowings 999 — — — 999 Proceed for revolving line of credit 300 — — — 300 Payments on long-term debt and capital lease obligations (306 ) — — — (306 ) Intercompany activity — (196 ) 56 140 — Other financing activities (8 ) — — — (8 ) Net cash provided by (used in) financing activities (113 ) (196 ) 56 140 (113 ) Effect of exchange rate changes on cash and cash equivalents — — 6 — 6 Net change in cash and cash equivalents — 107 7 — 114 Cash and cash equivalents at beginning of period — 147 90 — 237 Cash and cash equivalents at end of period $ — $ 254 $ 97 $ — $ 351 Condensed Consolidated Statements of Cash Flows (In millions) September 27, 2015 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net cash provided by operating activities $ — $ 1,095 $ 34 $ — $ 1,129 Cash flows from investing activities Purchases of property, plant and equipment — (803 ) (48 ) — (851 ) Purchases of available-for-sale securities — (494 ) — — (494 ) Sales and maturities of available-for-sale securities — 928 — — 928 Purchases of intangible assets — (3 ) — — (3 ) Increase in restricted cash — (19 ) — — (19 ) Payment for purchase of acquired entities, net of cash acquired — — (4 ) — (4 ) Intercompany activity 622 — — (622 ) — Other investing activities — (12 ) — — (12 ) Net cash provided by (used in) investing activities 622 (403 ) (52 ) (622 ) (455 ) Cash flows from financing activities Purchases of treasury stock (513 ) — — — (513 ) Common stock dividends paid (184 ) — — — (184 ) Issuance of common stock 66 — — — 66 Excess tax benefit related to exercise of team member stock options 11 — — — 11 Proceeds from long-term borrowings — — — — — Proceeds from revolving line of credit — — — — — Payments on long-term debt and capital lease obligations (1 ) — — — (1 ) Intercompany activity — (641 ) 19 622 — Other financing activities (1 ) — — — (1 ) Net cash provided by (used in) financing activities (622 ) (641 ) 19 622 (622 ) Effect of exchange rate changes on cash and cash equivalents — — (5 ) — (5 ) Net change in cash and cash equivalents — 51 (4 ) — 47 Cash and cash equivalents at beginning of period — 96 94 — 190 Cash and cash equivalents at end of period $ — $ 147 $ 90 $ — $ 237 Condensed Consolidated Statements of Cash Flows (In millions) September 28, 2014 Parent/Issuer Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Total Net cash provided by operating activities $ — $ 977 $ 111 $ — $ 1,088 Cash flows from investing activities Purchases of property, plant and equipment — (623 ) (87 ) — (710 ) Purchases of available-for-sale securities — (720 ) — — (720 ) Sales and maturities of available-for-sale securities — 1,054 — — 1,054 Purchases of intangible assets — (20 ) — — (20 ) Decrease in restricted cash — 2 — — 2 Payment for purchase of acquired entities, net of cash acquired — (32 ) (41 ) — (73 ) Intercompany activity 698 — — (698 ) — Other investing activities — (17 ) — — (17 ) Net cash provided by (used in) investing activities 698 (356 ) (128 ) (698 ) (484 ) Cash flows from financing activities Purchases of treasury stock (578 ) — — — (578 ) Common stock dividends paid (170 ) — — — (170 ) Issuance of common stock 42 — — — 42 Excess tax benefit related to exercise of team member stock options 9 — — — 9 Proceeds from long-term borrowings — — — — — Proceeds from revolving line of credit — — — — — Payments on long-term debt and capital lease obligations (1 ) — — — (1 ) Intercompany activity — (730 ) 32 698 — Other financing activities — — — — — Net cash provided by (used in) financing activities (698 ) (730 ) 32 698 (698 ) Effect of exchange rate changes on cash and cash equivalents — — (6 ) — (6 ) Net change in cash and cash equivalents — (109 ) 9 — (100 ) Cash and cash equivalents at beginning of period — 205 85 — 290 Cash and cash equivalents at end of period $ — $ 96 $ 94 $ — $ 190 |
Description of Business (Percen
Description of Business (Percentage Sales and Percentage of Net Long-Lived Assets by Geographic Area) (Details) | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of Total Sales | 100.00% | 100.00% | 100.00% |
Percentage of Total Net Long-Lived Assets | 100.00% | 100.00% | 100.00% |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of Total Sales | 97.10% | 96.90% | 96.70% |
Percentage of Total Net Long-Lived Assets | 97.50% | 97.40% | 96.00% |
Canada and United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of Total Sales | 2.90% | 3.10% | 3.30% |
Percentage of Total Net Long-Lived Assets | 2.50% | 2.60% | 4.00% |
Description of Business (Perc44
Description of Business (Percentage Sales by Product Category) (Details) | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Product Information [Line Items] | |||
Percentage of Total Sales | 100.00% | 100.00% | 100.00% |
Prepared Foods and Bakery [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Sales | 18.90% | 19.00% | 19.20% |
Other Perishables [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Sales | 47.60% | 47.50% | 47.60% |
Total Perishables [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Sales | 66.50% | 66.50% | 66.80% |
Non-Perishables [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Sales | 33.50% | 33.50% | 33.20% |
Description of Business (Narrat
Description of Business (Narrative) (Details) | 12 Months Ended |
Sep. 25, 2016SegmentStateStore | |
Entity Location [Line Items] | |
Number of Years Existence | 38 years |
Number of Stores | 456 |
Number of States in which Entity Operates | State | 42 |
Number of Operating Segments | Segment | 1 |
Number of Reportable Segments | Segment | 1 |
United States [Member] | |
Entity Location [Line Items] | |
Number of Stores | 436 |
Canada [Member] | |
Entity Location [Line Items] | |
Number of Stores | 11 |
United Kingdom [Member] | |
Entity Location [Line Items] | |
Number of Stores | 9 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Definition of Fiscal Year) (Details) - Fiscal Year [Member] | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Fiscal Year [Line Items] | |||
Fiscal Period Duration | 364 days | 364 days | 364 days |
Minimum [Member] | |||
Fiscal Year [Line Items] | |||
Fiscal Period Duration | 364 days | ||
Maximum [Member] | |||
Fiscal Year [Line Items] | |||
Fiscal Period Duration | 371 days |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Inventories, Property and Equipment and Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Inventories [Abstract] | ||
Percentage of LIFO Inventory | 91.80% | 92.20% |
Inventory, LIFO Reserve | $ 42 | $ 49 |
Leases [Abstract] | ||
Property Resulting from Build-to-Suit Leases | $ 14 | |
Equipment | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Buildings | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Buildings | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 50 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Share-Based Payments) (Details) | 12 Months Ended |
Sep. 25, 2016 | |
Stock Purchase Plan [Abstract] | |
Minimum service hours for stock purchase plan eligibility | 400 hours |
Percentage discount from purchase date market value under stock purchase plan | 5.00% |
Stock Option [Member] | |
Stock Incentive Plan [Abstract] | |
Period from grant date to beginning of options vesting | 1 year |
Stock Option Vesting Term 1 [Member] | Stock Option [Member] | |
Stock Incentive Plan [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Stock Option Vesting Term 2 [Member] | Stock Option [Member] | |
Stock Incentive Plan [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 9 years |
Restricted Stock Vesting Term 1 [Member] | Restricted Stock [Member] | |
Stock Incentive Plan [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Restricted Stock Vesting Term 2 [Member] | Restricted Stock [Member] | |
Stock Incentive Plan [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 years |
Expiration Period 1 [Member] | Stock Option [Member] | |
Stock Incentive Plan [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years |
Expiration Period 2 [Member] | Stock Option [Member] | |
Stock Incentive Plan [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years |
Expiration Period 3 [Member] | Stock Option [Member] | |
Stock Incentive Plan [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Other Policies) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Restricted Cash [Abstract] | |||
Restricted Cash, Description | the Company holds restricted cash as a rent guarantee on certain operating leases through fiscal year 2020 | ||
Insurance and Self-Insurance Reserves [Abstract] | |||
Insurance Liabilities | $ 180 | $ 170 | |
Cost of Goods Sold and Occupancy Costs [Abstract] | |||
Percentage of Purchases from Largest Supplier | 32.50% | 32.00% | 31.80% |
Direct Store Expenses [Abstract] | |||
Advertising Expense | $ 96 | $ 89 | $ 63 |
Pre-opening Expenses [Abstract] | |||
Average period for pre-opening rent expense (in months) | 9 months | ||
Average period for pre-opening costs other than rent (in days) | 60 days | ||
Minimum [Member] | |||
Reserves for Closed Properties [Abstract] | |||
Remaining Lease Terms, Closed Properties | 4 months | ||
Maximum [Member] | |||
Reserves for Closed Properties [Abstract] | |||
Remaining Lease Terms, Closed Properties | 8 years | ||
Contract-Based Intangible Assets [Member] | |||
Goodwill and Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Weighted Average Life (in years) | 15 years | ||
Marketing-Related and Other Intangible Assets [Member] | |||
Goodwill and Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Weighted Average Life (in years) | 1 year |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierachy Levels) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Total | $ 517 | $ 250 |
Level 1 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 62 | 32 |
Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 455 | 218 |
Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 62 | 32 |
Money Market Funds [Member] | Level 1 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 62 | 32 |
Commercial Paper [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 30 | |
Marketable Securities - Available-for-sale | 30 | |
Commercial Paper [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 30 | |
Marketable Securities - Available-for-sale | 30 | |
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 | 46 | |
Marketable Securities - Available-for-sale | 26 | 173 |
Municipal Notes Bonds [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash Equivalents | 46 | |
Marketable Securities - Available-for-sale | 26 | $ 173 |
Variable Rate Demand Obligation [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | 323 | |
Variable Rate Demand Obligation [Member] | Level 2 Inputs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable Securities - Available-for-sale | $ 323 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) $ in Millions | 3 Months Ended |
Sep. 27, 2015USD ($) | |
Selling, General and Administrative Expenses [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment of Long-Lived Assets, on a Nonrecurring Basis | $ 46 |
Investments (Marketable Sercuri
Investments (Marketable Sercurities) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | $ 379 | $ 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 | |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 30 | |
Corporate Note Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 15 | |
Municipal Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | 26 | 128 |
Variable Rate Demand Obligation [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Current | $ 323 | |
Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Noncurrent | 15 | |
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 | 12 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Investments [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 33 | $ 58 |
Short-term Investments Average Effective Maturity Period (in months) | 1 month | 7 months |
Long-term Investments Average Effective Maturity Period (in months) | 16 months | |
Cost Method Investments | $ 19 | $ 14 |
Property and Equipment (Major C
Property and Equipment (Major Classes of Property and Equipment) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,414 | $ 5,854 |
Less accumulated depreciation and amortization | (2,972) | (2,691) |
Property and equipment, net of accumulated depreciation and amortization | 3,442 | 3,163 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 161 | 151 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,390 | 3,116 |
Capitalized Real Estate Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 80 | 81 |
Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,499 | 2,330 |
Construction in Progress and Equipment not yet in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 284 | $ 176 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense related to property and equipment | $ 478 | $ 422 | $ 360 | |
Impairment of Tangible Assets | 48 | |||
Development costs of new locations | 395 | 516 | $ 447 | |
Construction accruals included in other current liabilities | $ 54 | $ 94 | $ 54 | |
Selling, general and administrative expenses | Fair Value, Measurements, Nonrecurring [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of Long-Lived Assets, on a Nonrecurring Basis | $ 46 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | $ 129 | $ 129 |
Finite-Lived Intangible Assets, Accumulated Amortization | (55) | (50) |
Contract-Based Intangible Assets [Member] | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 120 | 122 |
Indefinite-Lived Intangible Assets | 9 | 7 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ (55) | $ (50) |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets (Definite-lived Intangible Assets Future Amortization Expense) (Details) $ in Millions | Sep. 25, 2016USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 5 |
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 | 4 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 40 |
Finite-Lived Intangible Assets, Future Amortization Expense | $ 65 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Additions | $ 0 | ||
Goodwill, Adjustments | 0 | ||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
One-Time Termination Benefits (
One-Time Termination Benefits (Narrative) (Details) $ in Millions | 12 Months Ended |
Sep. 27, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Number of Positions Eliminated (more than) | 2,000 |
Restructuring and Related Cost, Number of Positions Eliminated, Inception to Date Percent | 2.10% |
Selling, general and administrative expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Incurred Cost | $ 34 |
Reserves for Closed Propertie60
Reserves for Closed Properties (Activity in Reserves for Closed Properties) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 28 | $ 31 |
Additions | 6 | 9 |
Usage | (10) | (13) |
Adjustments | 2 | 1 |
Ending Balance | $ 26 | $ 28 |
Reserves for Closed Propertie61
Reserves for Closed Properties Reserves for Closed Properties (Narrative) (Details) $ in Millions | 12 Months Ended | |
Sep. 25, 2016USD ($)Closure | Sep. 27, 2015USD ($)Closure | |
Restructuring and Related Activities [Abstract] | ||
New Closures, Number | Closure | 6 | 7 |
Usage | $ | $ 10 | $ 13 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 58 | $ 65 |
Total long-term debt and capital lease obligations | 1,051 | 65 |
Less: current installments | (3) | (3) |
Total long-term debt and capital lease obligations, less current installments | 1,048 | 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 | $ 58 | $ 65 |
Long-Term Debt (Credit Agreemen
Long-Term Debt (Credit Agreement) (Narrative) (Details) - USD ($) $ in Millions | 4 Months Ended | 12 Months Ended |
Jan. 17, 2016 | Sep. 25, 2016 | |
Line of Credit Facility [Line Items] | ||
Proceeds from revolving line of credit | $ 300 | $ 300 |
Repayments of Lines of Credit | $ 300 | |
Outstanding 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 | an 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) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 2016 | Oct. 28, 2016 | |
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 Periodic Payment | semiannually | |
Debt Instrument, Maturity Date | Dec. 3, 2025 | |
Fair Value, Debt Instrument, Difference in Fair Value to Carrying Value | $ 92 | |
Debt Instrument, Interest Rate During Period | 5.28% | |
Debt Instrument, Redemption, Period One [Member] | ||
Debt Instrument [Line Items] | ||
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, Start Date | Dec. 3, 2015 | |
Debt Instrument, Redemption Period, End Date | Sep. 2, 2025 | |
Debt Instrument, Redemption, Period Two [Member] | ||
Debt Instrument [Line Items] | ||
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. | |
Debt Instrument, Redemption Period, Start Date | Sep. 3, 2025 | |
Debt Instrument, Redemption Period, End Date | Dec. 3, 2025 | |
Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of Registered Senior Notes | 99.10% |
Leases (Minimum Rental Commitme
Leases (Minimum Rental Commitments and Sublease Rental Income) (Details) $ in Millions | Sep. 25, 2016USD ($) |
Leases [Abstract] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 6 |
Capital Leases, Future Minimum Payments Due in Two Years | 5 |
Capital Leases, Future Minimum Payments Due in Three Years | 4 |
Capital Leases, Future Minimum Payments Due in Four Years | 5 |
Capital Leases, Future Minimum Payments Due in Five Years | 5 |
Capital Leases, Future Minimum Payments Due Thereafter | 65 |
Capital Leases, Future Minimum Payments Due | 90 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | 32 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 58 |
Operating Leases, Future Minimum Payments, Due, Next Twelve Months | 433 |
Operating Leases Future Minimum Payments Due In Two Years | 522 |
Operating Leases, Future Minimum Payments, Due in Three Years | 557 |
Operating Leases, Future Minimum Payments, Due in Four Years | 568 |
Operating Leases, Future Minimum Payments, Due in Five Years | 569 |
Operating Leases, Future Minimum Payments, Due Thereafter | 6,485 |
Operating Leases, Future Minimum Payments Due | 9,134 |
Operating Leases, Future Minimum Payments Receivable, Current | 8 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 7 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 5 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 5 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 3 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 4 |
Operating Leases, Future Minimum Payments Receivable | $ 32 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Lease Expiration Date [Line Items] | |||
Capital Lease Obligations | $ 58 | $ 65 | |
Operating Leases, Rent Expense | 477 | 441 | $ 407 |
Operating Leases, Rent Expense, Contingent Rental | 12 | 14 | $ 13 |
Prepaid Rent | $ 44 | $ 38 | |
Minimum [Member] | |||
Lease Expiration Date [Line Items] | |||
Lease Expiration Date | Sep. 30, 2016 | ||
Maximum [Member] | |||
Lease Expiration Date [Line Items] | |||
Lease Expiration Date | Feb. 28, 2054 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | [1] | Jul. 03, 2016 | [1] | Apr. 10, 2016 | [1] | Sep. 27, 2015 | [1] | Jul. 05, 2015 | [1] | Apr. 12, 2015 | [1] | Jan. 17, 2016 | [1] | Jan. 18, 2015 | [1] | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Components of income tax expense | |||||||||||||||||||
Current federal income tax | $ 223 | $ 310 | $ 359 | ||||||||||||||||
Current state income tax | 52 | 76 | 82 | ||||||||||||||||
Current foreign income tax | (1) | (1) | 2 | ||||||||||||||||
Total current tax | 274 | 385 | 443 | ||||||||||||||||
Deferred federal income tax | 41 | (40) | (66) | ||||||||||||||||
Deferred state income tax | 8 | (2) | (10) | ||||||||||||||||
Deferred foreign income tax | (3) | (1) | |||||||||||||||||
Total deferred tax | 46 | (43) | (76) | ||||||||||||||||
Total income tax expense | $ 59 | $ 76 | $ 93 | $ 36 | $ 98 | $ 101 | $ 92 | $ 107 | $ 320 | $ 342 | $ 367 | ||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Income Taxes Income Taxes (Reco
Income Taxes Income Taxes (Reconciliation of Income Tax Expense to Federal Statutory Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | [1] | Jul. 03, 2016 | [1] | Apr. 10, 2016 | [1] | Sep. 27, 2015 | [1] | Jul. 05, 2015 | [1] | Apr. 12, 2015 | [1] | Jan. 17, 2016 | [1] | Jan. 18, 2015 | [1] | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||||||||||
Federal income tax based on statutory rates | $ 289 | $ 307 | $ 331 | ||||||||||||||||
Increase (reduction) in income taxes resulting from: | |||||||||||||||||||
Tax-exempt interest | (1) | (1) | |||||||||||||||||
Excess charitable contributions | (10) | (9) | (8) | ||||||||||||||||
Federal income tax credits | (4) | (3) | (3) | ||||||||||||||||
Other, net | 10 | 2 | 2 | ||||||||||||||||
Total federal income taxes | 285 | 296 | 321 | ||||||||||||||||
State income taxes, net of federal income tax benefit | 39 | 48 | 47 | ||||||||||||||||
Tax impact of foreign operations | (4) | (2) | (1) | ||||||||||||||||
Total income tax expense | $ 59 | $ 76 | $ 93 | $ 36 | $ 98 | $ 101 | $ 92 | $ 107 | $ 320 | $ 342 | $ 367 | ||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Deferred tax assets: | ||
Compensation-related costs | $ 215 | $ 207 |
Insurance-related costs | 60 | 59 |
Inventories | 5 | 2 |
Lease and other termination accruals | 10 | 11 |
Lease negotiation legal fees | 7 | 6 |
Rent differential | 189 | 170 |
Tax basis of fixed assets in excess of financial basis | 8 | 11 |
Net domestic and international operating loss carryforwards | 14 | 23 |
Other | 13 | 9 |
Gross deferred tax assets | 521 | 498 |
Valuation allowance | (23) | (35) |
Deferred tax assets | 498 | 463 |
Deferred tax liabilities: | ||
Financial basis of fixed assets in excess of tax basis | (197) | (117) |
Capitalized costs expensed for tax purposes | (4) | (3) |
Deferred tax liabilities | (201) | (120) |
Net deferred tax asset | $ 297 | $ 343 |
Income Taxes Income Taxes (Net
Income Taxes Income Taxes (Net Deferred Tax Assets) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Income Tax Disclosure [Abstract] | ||
Current assets | $ 197 | $ 199 |
Noncurrent assets | 100 | 144 |
Net deferred tax asset | $ 297 | $ 343 |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets, valuation allowance | $ 23 | $ 35 |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 71 |
Shareholders' Equity (Dividends
Shareholders' Equity (Dividends Declared per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2016 | Jul. 03, 2016 | Apr. 10, 2016 | Sep. 27, 2015 | Jul. 05, 2015 | Apr. 12, 2015 | Jan. 17, 2016 | Jan. 18, 2015 | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | ||
Dividends Per Common Share [Abstract] | ||||||||||||
Dividends Payable, Date Declared | Sep. 22, 2016 | 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 | $ 0.135 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.135 | $ 0.13 | $ 0.54 | $ 0.52 | $ 0.48 | |
Dividends Payable, Date of Record | Oct. 3, 2016 | 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 | Oct. 14, 2016 | 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] | $ 43 | $ 44 | $ 45 | $ 47 | $ 47 | $ 44 | $ 47 | $ 174 | $ 186 | $ 176 |
[1] | Dividend accrued at September 25, 2016 |
Shareholders' Equity (Share Rep
Shareholders' Equity (Share Repurchase Programs) (Details) $ in Millions | 12 Months Ended |
Sep. 25, 2016USD ($) | |
Aug. 1, 2014 Share Repurchase Program [Member] | |
Shareholders' Equity [Line Items] | |
Stock Repurchase Program Expiration Date | Aug. 1, 2016 |
Stock Repurchase Program, Authorized Amount | $ 1,000 |
Stock Repurchase Program, Amount Utilized For Repurchases | 1,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 |
Nov. 4, 2015 Share Repurchase Program [Member] | |
Shareholders' Equity [Line Items] | |
Stock Repurchase Program, Authorized Amount | 1,000 |
Stock Repurchase Program, Amount Utilized For Repurchases | 556 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 444 |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity (Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Equity [Abstract] | |||
Treasury Stock, Shares, Acquired | 31.7 | 13.8 | |
Treasury Stock Acquired, Average Cost Per Share | $ 29.82 | $ 37.06 | |
Treasury Stock, Value, Acquired, Cost Method | $ 944 | $ 513 | $ 578 |
Shareholders' Equity Sharehol75
Shareholders' Equity Shareholders' Equtiy (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Equity [Abstract] | ||
Treasury Stock Reissued During Period, Shares | 1.1 | 2.3 |
Treasury Stock Reissued During Period, Value | $ 42 | $ 100 |
Treasury Stock, Shares | 58.7 | 28.2 |
Treasury Stock, Value | $ 2,026 | $ 1,124 |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation of Numerators and Denominators of the Basic and Diluted per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | [1] | Jul. 03, 2016 | [1] | Apr. 10, 2016 | [1] | Sep. 27, 2015 | [1] | Jul. 05, 2015 | [1] | Apr. 12, 2015 | [1] | Jan. 17, 2016 | [1] | Jan. 18, 2015 | [1] | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Earnings Per Share [Abstract] | |||||||||||||||||||
Net Income | $ 88 | $ 120 | $ 142 | $ 56 | $ 154 | $ 158 | $ 157 | $ 167 | $ 507 | $ 536 | $ 579 | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 326.1 | 358.5 | 367.8 | ||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0.8 | 2.3 | 2.7 | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 326.9 | 360.8 | 370.5 | ||||||||||||||||
Basic earnings per share (in dollars per share) | $ 0.28 | $ 0.37 | $ 0.44 | $ 0.16 | $ 0.43 | $ 0.44 | $ 0.47 | $ 0.46 | $ 1.55 | $ 1.49 | $ 1.57 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.28 | $ 0.37 | $ 0.44 | $ 0.16 | $ 0.43 | $ 0.44 | $ 0.46 | $ 0.46 | $ 1.55 | $ 1.48 | $ 1.56 | ||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings per Share, Amount | 21.8 | 12 | 9.1 |
Share-Based Payments (Stock Opt
Share-Based Payments (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 24.3 | 22.3 | 19.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5 | 5.3 | 5.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (0.9) | (2.2) | (1.5) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (0.9) | (0.3) | (0.1) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (1.2) | (0.8) | (0.6) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 26.3 | 24.3 | 22.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 25.2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 14.8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 40.45 | $ 38.37 | $ 36.90 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 30.31 | 44.30 | 40.25 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 15.23 | 27.81 | 24.13 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 41.73 | 42.88 | 36.10 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 41.72 | 42.66 | 42.32 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | 39.35 | $ 40.45 | $ 38.37 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 39.53 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ 40.47 | ||
Weighted Average Remaining Contractual Life [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 1 day | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 1 month 2 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 3 years 4 days | ||
Aggregate Intrinsic Value [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 12 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 11 |
Share-Based Payments (Summary o
Share-Based Payments (Summary of Stock Options Outstanding and Exercisable) (Details) - $ / shares shares in Millions | 12 Months Ended | |||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 26.3 | 24.3 | 22.3 | 19.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 39.35 | $ 40.45 | $ 38.37 | $ 36.90 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 1 day | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 14.8 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ 40.47 | |||
Range of Exercise Prices Group 1 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 20.42 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 29.55 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1.6 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 20.49 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 7 months 13 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1.4 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 20.43 | |||
Range of Exercise Prices Group 2 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 30.30 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 38.50 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 11 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 33 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 9 months 11 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 4.4 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 33.98 | |||
Range of Exercise Prices Group 3 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 40.81 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 46.28 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 9.2 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 43.73 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 11 months 23 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 6 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 44.06 | |||
Range of Exercise Prices Group 4 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 51.25 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 59.15 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4.5 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 52.40 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 11 months 16 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 3 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 52.12 |
Share-Based Payments (Black-Sch
Share-Based Payments (Black-Scholes Option Pricing Model Information) (Details) - Stock Option [Member] | 12 Months Ended | ||
Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.73% | 1.00% | 0.95% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.08% | 1.20% | 1.18% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 31.30% | 29.73% | 30.96% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 18 days | 4 years 15 days | 4 years 15 days |
Share-Based Payments Share-Base
Share-Based Payments Share-Based Payments (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 25, 2016USD ($)Tranche$ / sharesshares | Sep. 27, 2015USD ($)$ / sharesshares | Sep. 28, 2014USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based payment expense before income taxes | $ 49 | $ 64 | $ 68 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 29.8 | 32.9 | 37.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 6.71 | $ 10.19 | $ 9.67 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 16 | $ 46 | $ 36 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 15 | 46 | 36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 141 | 209 | 192 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 73 | $ 95 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | shares | 10.5 | 11.5 | |
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based payment expense before income taxes | $ 45 | $ 60 | $ 63 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition (in years) | 2 years 10 months 24 days | ||
Number of tranches | Tranche | 2 | ||
Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Historical volatility | 4 years | ||
Expected Life Assumption Period | 5 years | ||
Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Historical volatility | 6 years | ||
Expected Life Assumption Period | 7 years |
Quarterly Results (unaudited)82
Quarterly Results (unaudited) (Selected Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | Jul. 03, 2016 | Apr. 10, 2016 | Sep. 27, 2015 | Jul. 05, 2015 | Apr. 12, 2015 | Jan. 17, 2016 | Jan. 18, 2015 | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Sales | $ 3,497 | [1] | $ 3,703 | [1] | $ 3,696 | [1] | $ 3,438 | [1] | $ 3,632 | [1] | $ 3,647 | [1] | $ 4,829 | [1] | $ 4,671 | [1] | $ 15,724 | $ 15,389 | $ 14,194 |
Cost of goods sold and occupancy costs | 2,303 | [1] | 2,417 | [1] | 2,406 | [1] | 2,252 | [1] | 2,339 | [1] | 2,337 | [1] | 3,188 | [1] | 3,045 | [1] | 10,313 | 9,973 | 9,150 |
Gross profit | 1,194 | [1] | 1,286 | [1] | 1,290 | [1] | 1,186 | [1] | 1,293 | [1] | 1,310 | [1] | 1,641 | [1] | 1,626 | [1] | 5,411 | 5,416 | 5,044 |
Selling, general and administrative expenses | 1,019 | [1] | 1,057 | [1] | 1,028 | [1] | 1,080 | [1] | 1,032 | [1] | 1,029 | [1] | 1,373 | [1] | 1,330 | [1] | 4,477 | 4,472 | 4,032 |
Pre-opening expenses | 15 | [1] | 18 | [1] | 18 | [1] | 14 | [1] | 12 | [1] | 20 | [1] | 13 | [1] | 21 | [1] | 64 | 67 | 67 |
Relocation, store closure and lease termination costs | 5 | [1] | 2 | [1] | 3 | [1] | 4 | [1] | 2 | [1] | 6 | [1] | 3 | [1] | 4 | [1] | 13 | 16 | 11 |
Operating income | 155 | [1] | 209 | [1] | 241 | [1] | 88 | [1] | 247 | [1] | 255 | [1] | 252 | [1] | 271 | [1] | 857 | 861 | 934 |
Interest expense | (11) | [1] | (12) | [1] | (11) | [1] | (7) | [1] | (41) | ||||||||||
Investment and other income (expense) | 3 | [1] | (1) | [1] | 5 | [1] | 4 | [1] | 5 | [1] | 4 | [1] | 4 | [1] | 3 | [1] | 11 | 17 | 12 |
Income before income taxes | 147 | [1] | 196 | [1] | 235 | [1] | 92 | [1] | 252 | [1] | 259 | [1] | 249 | [1] | 274 | [1] | 827 | 878 | 946 |
Provision for income taxes | 59 | [1] | 76 | [1] | 93 | [1] | 36 | [1] | 98 | [1] | 101 | [1] | 92 | [1] | 107 | [1] | 320 | 342 | 367 |
Net income | $ 88 | [1] | $ 120 | [1] | $ 142 | [1] | $ 56 | [1] | $ 154 | [1] | $ 158 | [1] | $ 157 | [1] | $ 167 | [1] | $ 507 | $ 536 | $ 579 |
Basic earnings per share (in dollars per share) | $ 0.28 | [1] | $ 0.37 | [1] | $ 0.44 | [1] | $ 0.16 | [1] | $ 0.43 | [1] | $ 0.44 | [1] | $ 0.47 | [1] | $ 0.46 | [1] | $ 1.55 | $ 1.49 | $ 1.57 |
Diluted earnings per share (in dollars per share) | 0.28 | [1] | 0.37 | [1] | 0.44 | [1] | 0.16 | [1] | 0.43 | [1] | 0.44 | [1] | 0.46 | [1] | 0.46 | [1] | 1.55 | 1.48 | 1.56 |
Dividends declared per common share (in dollars per share) | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.135 | $ 0.13 | $ 0.54 | $ 0.52 | $ 0.48 | ||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Quarterly Results (unaudited)83
Quarterly Results (unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Selling, general and administrative expenses | ||||
Quarterly Information [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | $ 34 | |||
Selling, general and administrative expenses | Fair Value, Measurements, Nonrecurring [Member] | ||||
Quarterly Information [Line Items] | ||||
Impairment of Long-Lived Assets, on a Nonrecurring Basis | $ 46 | |||
Fiscal Year [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 364 days | 364 days | 364 days | |
Fiscal Year [Member] | Maximum [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 371 days | |||
Fiscal Year [Member] | Minimum [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 364 days | |||
First Quarter [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 112 days | |||
Second Quarter [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 84 days | |||
Third Quarter [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 84 days | |||
Fourth Quarter [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 84 days | |||
Fourth Quarter [Member] | Maximum [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 91 days | |||
Fourth Quarter [Member] | Minimum [Member] | ||||
Quarterly Information [Line Items] | ||||
Fiscal Period Duration | 84 days |
Guarantor Financial Statement84
Guarantor Financial Statements (Consolidated Statement of Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 351 | $ 237 | $ 190 | $ 290 |
Short-term investments - available-for-sale securities | 379 | 155 | ||
Restricted cash | 122 | 127 | ||
Accounts receivable | 242 | 218 | ||
Merchandise inventories | 517 | 500 | ||
Prepaid expenses and other current assets | 167 | 108 | ||
Deferred income taxes | 197 | 199 | ||
Total current assets | 1,975 | 1,544 | ||
Property and equipment, net of accumulated depreciation and amortization | 3,442 | 3,163 | ||
Long-term investments - available-for-sale securities | 63 | |||
Goodwill | 710 | 710 | ||
Intangible assets, net of accumulated amortization | 74 | 79 | ||
Deferred income taxes | 100 | 144 | ||
Other assets | 40 | 38 | ||
Total assets | 6,341 | 5,741 | ||
Long-term capital lease obligations, less current installments | 1,048 | 62 | ||
Deferred lease liabilities | 640 | 587 | ||
Other long-term liabilities | 88 | 71 | ||
Total liabilities | 3,117 | 1,972 | ||
Commitments and contingencies | ||||
Total liabilities and shareholders’ equity | 6,341 | 5,741 | ||
Current liabilities: | ||||
Current installments of long-term debt and capital lease obligations | 3 | 3 | ||
Accounts payable | 307 | 295 | ||
Accrued payroll, bonus and other benefits due team members | 407 | 436 | ||
Dividends payable | 43 | 45 | ||
Other current liabilities | 581 | 473 | ||
Total current liabilities | 1,341 | 1,252 | ||
Shareholders' equity: | ||||
Total shareholders’ equity | 3,224 | 3,769 | 3,813 | 3,878 |
Parent Company [Member] | ||||
Current assets: | ||||
Investments in consolidated subsidiaries | 4,593 | 4,060 | ||
Intangible assets, net of accumulated amortization | 1 | |||
Other assets | 10 | |||
Total assets | 4,594 | 4,070 | ||
Long-term capital lease obligations, less current installments | 993 | |||
Total liabilities | 1,369 | 301 | ||
Commitments and contingencies | ||||
Total liabilities and shareholders’ equity | 4,594 | 4,070 | ||
Current liabilities: | ||||
Intercompany payable | 316 | 256 | ||
Dividends payable | 43 | 45 | ||
Other current liabilities | 17 | |||
Total current liabilities | 376 | 301 | ||
Shareholders' equity: | ||||
Total shareholders’ equity | 3,225 | 3,769 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 254 | 147 | 96 | 205 |
Short-term investments - available-for-sale securities | 379 | 155 | ||
Restricted cash | 114 | 115 | ||
Accounts receivable | 216 | 194 | ||
Intercompany receivable | 649 | 533 | ||
Merchandise inventories | 441 | 430 | ||
Prepaid expenses and other current assets | 150 | 96 | ||
Deferred income taxes | 197 | 199 | ||
Total current assets | 2,400 | 1,869 | ||
Property and equipment, net of accumulated depreciation and amortization | 3,063 | 2,832 | ||
Long-term investments - available-for-sale securities | 63 | |||
Investments in consolidated subsidiaries | 103 | 93 | ||
Goodwill | 702 | 703 | ||
Intangible assets, net of accumulated amortization | 63 | 69 | ||
Deferred income taxes | 94 | 141 | ||
Other assets | 16 | 18 | ||
Total assets | 6,441 | 5,788 | ||
Long-term capital lease obligations, less current installments | 48 | 55 | ||
Deferred lease liabilities | 592 | 544 | ||
Other long-term liabilities | 87 | 69 | ||
Total liabilities | 1,874 | 1,750 | ||
Commitments and contingencies | ||||
Total liabilities and shareholders’ equity | 6,441 | 5,788 | ||
Current liabilities: | ||||
Current installments of long-term debt and capital lease obligations | 3 | 3 | ||
Accounts payable | 227 | 216 | ||
Accrued payroll, bonus and other benefits due team members | 381 | 411 | ||
Other current liabilities | 536 | 452 | ||
Total current liabilities | 1,147 | 1,082 | ||
Shareholders' equity: | ||||
Total shareholders’ equity | 4,567 | 4,038 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 97 | 90 | $ 94 | $ 85 |
Restricted cash | 8 | 12 | ||
Accounts receivable | 26 | 24 | ||
Merchandise inventories | 76 | 70 | ||
Prepaid expenses and other current assets | 17 | 12 | ||
Total current assets | 224 | 208 | ||
Property and equipment, net of accumulated depreciation and amortization | 379 | 331 | ||
Investments in consolidated subsidiaries | 472 | 445 | ||
Goodwill | 8 | 7 | ||
Intangible assets, net of accumulated amortization | 10 | 10 | ||
Deferred income taxes | 6 | 3 | ||
Other assets | 24 | 10 | ||
Total assets | 1,123 | 1,014 | ||
Long-term capital lease obligations, less current installments | 7 | 7 | ||
Deferred lease liabilities | 48 | 43 | ||
Other long-term liabilities | 1 | 2 | ||
Total liabilities | 523 | 454 | ||
Commitments and contingencies | ||||
Total liabilities and shareholders’ equity | 1,123 | 1,014 | ||
Current liabilities: | ||||
Accounts payable | 80 | 79 | ||
Intercompany payable | 333 | 277 | ||
Accrued payroll, bonus and other benefits due team members | 26 | 25 | ||
Other current liabilities | 28 | 21 | ||
Total current liabilities | 467 | 402 | ||
Shareholders' equity: | ||||
Total shareholders’ equity | 600 | 560 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Intercompany receivable | (649) | (533) | ||
Total current assets | (649) | (533) | ||
Investments in consolidated subsidiaries | (5,168) | (4,598) | ||
Total assets | (5,817) | (5,131) | ||
Total liabilities | (649) | (533) | ||
Commitments and contingencies | ||||
Total liabilities and shareholders’ equity | (5,817) | (5,131) | ||
Current liabilities: | ||||
Intercompany payable | (649) | (533) | ||
Total current liabilities | (649) | (533) | ||
Shareholders' equity: | ||||
Total shareholders’ equity | $ (5,168) | $ (4,598) |
Guarantor Financial Statement85
Guarantor Financial Statements (Consolidated Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | [1] | Jul. 03, 2016 | [1] | Apr. 10, 2016 | [1] | Sep. 27, 2015 | [1] | Jul. 05, 2015 | [1] | Apr. 12, 2015 | [1] | Jan. 17, 2016 | [1] | Jan. 18, 2015 | [1] | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Income Statement | |||||||||||||||||||
Sales | $ 3,497 | $ 3,703 | $ 3,696 | $ 3,438 | $ 3,632 | $ 3,647 | $ 4,829 | $ 4,671 | $ 15,724 | $ 15,389 | $ 14,194 | ||||||||
Cost of goods sold and occupancy costs | 2,303 | 2,417 | 2,406 | 2,252 | 2,339 | 2,337 | 3,188 | 3,045 | 10,313 | 9,973 | 9,150 | ||||||||
Gross profit | 1,194 | 1,286 | 1,290 | 1,186 | 1,293 | 1,310 | 1,641 | 1,626 | 5,411 | 5,416 | 5,044 | ||||||||
Selling, general and administrative expenses | 1,019 | 1,057 | 1,028 | 1,080 | 1,032 | 1,029 | 1,373 | 1,330 | 4,477 | 4,472 | 4,032 | ||||||||
Pre-opening expenses | 15 | 18 | 18 | 14 | 12 | 20 | 13 | 21 | 64 | 67 | 67 | ||||||||
Relocation, store closure and lease termination costs | 5 | 2 | 3 | 4 | 2 | 6 | 3 | 4 | 13 | 16 | 11 | ||||||||
Operating income | 155 | 209 | 241 | 88 | 247 | 255 | 252 | 271 | 857 | 861 | 934 | ||||||||
Interest expense | (11) | (12) | (11) | (7) | (41) | ||||||||||||||
Investment and other income (expense) | 3 | (1) | 5 | 4 | 5 | 4 | 4 | 3 | 11 | 17 | 12 | ||||||||
Income before income taxes | 147 | 196 | 235 | 92 | 252 | 259 | 249 | 274 | 827 | 878 | 946 | ||||||||
Provision for income taxes | 59 | 76 | 93 | 36 | 98 | 101 | 92 | 107 | 320 | 342 | 367 | ||||||||
Net income | $ 88 | $ 120 | $ 142 | $ 56 | $ 154 | $ 158 | $ 157 | $ 167 | 507 | 536 | 579 | ||||||||
Parent Company [Member] | |||||||||||||||||||
Income Statement | |||||||||||||||||||
Interest expense | (41) | ||||||||||||||||||
Investment and other income (expense) | (1) | ||||||||||||||||||
Equity in net income of subsidiaries | 533 | 536 | 579 | ||||||||||||||||
Income before income taxes | 491 | 536 | 579 | ||||||||||||||||
Provision for income taxes | (16) | ||||||||||||||||||
Net income | 507 | 536 | 579 | ||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||
Income Statement | |||||||||||||||||||
Sales | 14,928 | 14,565 | 13,408 | ||||||||||||||||
Cost of goods sold and occupancy costs | 9,798 | 9,433 | 8,648 | ||||||||||||||||
Gross profit | 5,130 | 5,132 | 4,760 | ||||||||||||||||
Selling, general and administrative expenses | 4,224 | 4,182 | 3,780 | ||||||||||||||||
Pre-opening expenses | 58 | 65 | 60 | ||||||||||||||||
Relocation, store closure and lease termination costs | 10 | 15 | 10 | ||||||||||||||||
Operating income | 838 | 870 | 910 | ||||||||||||||||
Investment and other income (expense) | 12 | 16 | 10 | ||||||||||||||||
Equity in net income of subsidiaries | 10 | 9 | 11 | ||||||||||||||||
Income before income taxes | 860 | 895 | 931 | ||||||||||||||||
Provision for income taxes | 329 | 345 | 357 | ||||||||||||||||
Net income | 531 | 550 | 574 | ||||||||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||||||||
Income Statement | |||||||||||||||||||
Sales | 949 | 968 | 920 | ||||||||||||||||
Cost of goods sold and occupancy costs | 664 | 679 | 632 | ||||||||||||||||
Gross profit | 285 | 289 | 288 | ||||||||||||||||
Selling, general and administrative expenses | 253 | 290 | 252 | ||||||||||||||||
Pre-opening expenses | 6 | 2 | 7 | ||||||||||||||||
Relocation, store closure and lease termination costs | 3 | 1 | 1 | ||||||||||||||||
Operating income | 23 | (4) | 28 | ||||||||||||||||
Investment and other income (expense) | (4) | (3) | (2) | ||||||||||||||||
Equity in net income of subsidiaries | 28 | 38 | 48 | ||||||||||||||||
Income before income taxes | 47 | 31 | 74 | ||||||||||||||||
Provision for income taxes | 7 | (3) | 10 | ||||||||||||||||
Net income | 40 | 34 | 64 | ||||||||||||||||
Eliminations [Member] | |||||||||||||||||||
Income Statement | |||||||||||||||||||
Sales | (153) | (144) | (134) | ||||||||||||||||
Cost of goods sold and occupancy costs | (149) | (139) | (130) | ||||||||||||||||
Gross profit | (4) | (5) | (4) | ||||||||||||||||
Operating income | (4) | (5) | (4) | ||||||||||||||||
Investment and other income (expense) | 4 | 4 | 4 | ||||||||||||||||
Equity in net income of subsidiaries | (571) | (583) | (638) | ||||||||||||||||
Income before income taxes | (571) | (584) | (638) | ||||||||||||||||
Net income | $ (571) | $ (584) | $ (638) | ||||||||||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Guarantor Financial Statement86
Guarantor Financial Statements (Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 25, 2016 | [1] | Jul. 03, 2016 | [1] | Apr. 10, 2016 | [1] | Sep. 27, 2015 | [1] | Jul. 05, 2015 | [1] | Apr. 12, 2015 | [1] | Jan. 17, 2016 | [1] | Jan. 18, 2015 | [1] | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | |
Net income | $ 88 | $ 120 | $ 142 | $ 56 | $ 154 | $ 158 | $ 157 | $ 167 | $ 507 | $ 536 | $ 579 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Foreign currency translation adjustments | (4) | (21) | (8) | ||||||||||||||||
Other comprehensive income (loss), net of tax | (4) | (21) | (8) | ||||||||||||||||
Comprehensive income | 503 | 515 | 571 | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Net income | 507 | 536 | 579 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Comprehensive income | 507 | 536 | 579 | ||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||
Net income | 531 | 550 | 574 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Foreign currency translation adjustments | (12) | (7) | |||||||||||||||||
Other comprehensive income (loss), net of tax | (12) | (7) | |||||||||||||||||
Comprehensive income | 519 | 543 | 574 | ||||||||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||||||||
Net income | 40 | 34 | 64 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Foreign currency translation adjustments | 8 | (14) | (8) | ||||||||||||||||
Other comprehensive income (loss), net of tax | 8 | (14) | (8) | ||||||||||||||||
Comprehensive income | 48 | 20 | 56 | ||||||||||||||||
Eliminations [Member] | |||||||||||||||||||
Net income | (571) | (584) | (638) | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Comprehensive income | $ (571) | $ (584) | $ (638) | ||||||||||||||||
[1] | Sum of quarterly amounts, including per share amounts, may not equal fiscal year totals due to the effect of rounding and the independent quarterly computation of per share amounts. |
Guarantor Financial Statement87
Guarantor Financial Statements (Condensed Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Millions | 4 Months Ended | 12 Months Ended | |||
Jan. 17, 2016 | Sep. 25, 2016 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Cash flows from operating activities | |||||
Net cash provided by (used in) operating activities | $ 1,116 | $ 1,129 | $ 1,088 | ||
Cash flows from investing activities | |||||
Purchases of property, plant and equipment | (716) | (851) | (710) | ||
Purchases of available-for-sale securities | (593) | (494) | (720) | ||
Sales and maturities of available-for-sale securities | 431 | 928 | 1,054 | ||
Purchases of intangible assets | (2) | (3) | (20) | ||
Increase (Decrease) in Restricted Cash | 4 | (19) | 2 | ||
Payment for purchase of acquired entities, net of cash acquired | (11) | (4) | (73) | ||
Other investing activities | (8) | (12) | (17) | ||
Net cash provided by (used in) investing activities | (895) | (455) | (484) | ||
Cash flows from financing activities | |||||
Purchases of treasury stock | (944) | (513) | (578) | ||
Common stock dividends paid | (177) | (184) | (170) | ||
Issuance of common stock | 19 | 66 | 42 | ||
Excess tax benefit related to exercise of team member stock options | 4 | 11 | 9 | ||
Proceeds from long-term borrowings | 999 | ||||
Proceed for revolving line of credit | $ 300 | 300 | |||
Payments on long-term debt and capital lease obligations | (306) | (1) | (1) | ||
Other financing activities | (8) | (1) | |||
Net cash provided by (used in) financing activities | (113) | (622) | (698) | ||
Effect of exchange rate changes on cash and cash equivalents | 6 | (5) | (6) | ||
Net change in cash and cash equivalents | 114 | 47 | (100) | ||
Cash and cash equivalents | 351 | 237 | 190 | $ 290 | |
Parent Company [Member] | |||||
Cash flows from operating activities | |||||
Net cash provided by (used in) operating activities | (27) | ||||
Cash flows from investing activities | |||||
Intercompany activity | 140 | 622 | 698 | ||
Net cash provided by (used in) investing activities | 140 | 622 | 698 | ||
Cash flows from financing activities | |||||
Purchases of treasury stock | (944) | (513) | (578) | ||
Common stock dividends paid | (177) | (184) | (170) | ||
Issuance of common stock | 19 | 66 | 42 | ||
Excess tax benefit related to exercise of team member stock options | 4 | 11 | 9 | ||
Proceeds from long-term borrowings | 999 | ||||
Proceed for revolving line of credit | 300 | ||||
Payments on long-term debt and capital lease obligations | (306) | (1) | (1) | ||
Other financing activities | (8) | (1) | |||
Net cash provided by (used in) financing activities | (113) | (622) | (698) | ||
Guarantor Subsidiaries [Member] | |||||
Cash flows from operating activities | |||||
Net cash provided by (used in) operating activities | 1,114 | 1,095 | 977 | ||
Cash flows from investing activities | |||||
Purchases of property, plant and equipment | (643) | (803) | (623) | ||
Purchases of available-for-sale securities | (593) | (494) | (720) | ||
Sales and maturities of available-for-sale securities | 431 | 928 | 1,054 | ||
Purchases of intangible assets | (2) | (3) | (20) | ||
Increase (Decrease) in Restricted Cash | 4 | (19) | 2 | ||
Payment for purchase of acquired entities, net of cash acquired | (32) | ||||
Other investing activities | (8) | (12) | (17) | ||
Net cash provided by (used in) investing activities | (811) | (403) | (356) | ||
Cash flows from financing activities | |||||
Intercompany activity | (196) | (641) | (730) | ||
Net cash provided by (used in) financing activities | (196) | (641) | (730) | ||
Net change in cash and cash equivalents | 107 | 51 | (109) | ||
Cash and cash equivalents | 254 | 147 | 96 | 205 | |
Non-Guarantor Subsidiaries [Member] | |||||
Cash flows from operating activities | |||||
Net cash provided by (used in) operating activities | 29 | 34 | 111 | ||
Cash flows from investing activities | |||||
Purchases of property, plant and equipment | (73) | (48) | (87) | ||
Payment for purchase of acquired entities, net of cash acquired | (11) | (4) | (41) | ||
Net cash provided by (used in) investing activities | (84) | (52) | (128) | ||
Cash flows from financing activities | |||||
Intercompany activity | 56 | 19 | 32 | ||
Net cash provided by (used in) financing activities | 56 | 19 | 32 | ||
Effect of exchange rate changes on cash and cash equivalents | 6 | (5) | (6) | ||
Net change in cash and cash equivalents | 7 | (4) | 9 | ||
Cash and cash equivalents | 97 | 90 | 94 | $ 85 | |
Eliminations [Member] | |||||
Cash flows from investing activities | |||||
Intercompany activity | (140) | (622) | (698) | ||
Net cash provided by (used in) investing activities | (140) | (622) | (698) | ||
Cash flows from financing activities | |||||
Intercompany activity | 140 | 622 | 698 | ||
Net cash provided by (used in) financing activities | $ 140 | $ 622 | $ 698 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended |
Nov. 02, 2016USD ($) | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Separation, Advisory and Noncompetition charge | $ 13 |