10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended April 14, 2013; or

o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________.

Commission File Number:  0-19797

WHOLE FOODS MARKET, INC.

(Exact name of registrant as specified in its charter)

Texas	74-1989366
(State of	(IRS employer
incorporation)	identification no.)

550 Bowie Street

Austin, Texas 78703

(Address of principal executive offices)

512-477-4455

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

The number of shares of the registrant’s common stock, no par value, outstanding as of May 10, 2013 was 185,447,031 shares.

Whole Foods Market, Inc.

Form 10-Q

Table of Contents

	Page
Part I. Financial Information
Item 1. Financial Statements.
Consolidated Balance Sheets (unaudited), April 14, 2013 and September 30, 2012	1
Consolidated Statements of Operations (unaudited), for the twelve and twenty-eight weeks ended April 14, 2013 and April 8, 2012	2
Consolidated Statements of Comprehensive Income (unaudited), for the twelve and twenty-eight weeks ended April 14, 2013 and April 8, 2012	3
Consolidated Statements of Shareholders’ Equity (unaudited), for the twenty-eight weeks ended April 14, 2013 and fiscal year ended September 30, 2012	4
Consolidated Statements of Cash Flows (unaudited), for the twenty-eight weeks ended April 14, 2013 and April 8, 2012	5
Notes to Consolidated Financial Statements (unaudited)	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	12
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	19
Item 4. Controls and Procedures.	19
Part II. Other Information
Item 1. Legal Proceedings.	20
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	20
Item 6. Exhibits.	21
Signature	22

Part I. Financial Information

Item 1. Financial Statements.

Whole Foods Market, Inc.

Consolidated Balance Sheets (unaudited)

(In millions)

Assets	April 14, 2013			September 30, 2012
Current assets:
Cash and cash equivalents	$	202		$	89
Short-term investments - available-for-sale securities	876			1,131
Restricted cash	110			103
Accounts receivable	193			197
Merchandise inventories	380			374
Prepaid expenses and other current assets	67			77
Deferred income taxes	135			132
Total current assets	1,963			2,103
Property and equipment, net of accumulated depreciation and amortization	2,253			2,193
Long-term investments - available-for-sale securities	162			221
Goodwill	679			663
Intangible assets, net of accumulated amortization	66			62
Deferred income taxes	42			43
Other assets	16			9
Total assets	$	5,181		$	5,294
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of capital lease obligations	$	1		$	1
Accounts payable	230			247
Accrued payroll, bonus and other benefits due team members	334			307
Dividends payable	37			26
Other current liabilities	407			396
Total current liabilities	1,009			977
Long-term capital lease obligations, less current installments	26			23
Deferred lease liabilities	467			441
Other long-term liabilities	47			51
Total liabilities	1,549			1,492
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value, 600.0 shares authorized; 186.3 and 185.8 shares issued; 185.2 and 185.4 shares outstanding at 2013 and 2012, respectively	2,646			2,592
Common stock in treasury, at cost, 1.1 and 0.4 shares at 2013 and 2012, respectively	(91		)	(28		)
Accumulated other comprehensive income	—			5
Retained earnings	1,077			1,233
Total shareholders’ equity	3,632			3,802
Total liabilities and shareholders’ equity	$	5,181		$	5,294

The accompanying notes are an integral part of these consolidated financial statements.

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Whole Foods Market, Inc.

Consolidated Statements of Operations (unaudited)

(In millions, except per share amounts)

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Sales	$	3,027	$	2,670	$	6,883	$	6,061
Cost of goods sold and occupancy costs	1,926		1,700		4,434		3,913
Gross profit	1,101		970		2,449		2,148
Direct store expenses	769		682		1,748		1,553
General and administrative expenses	91		86		207		190
Pre-opening expenses	10		11		24		21
Relocation, store closure and lease termination costs	3		1		7		4
Operating income	228		190		463		380
Investment and other income, net of interest expense	3		2		6		4
Income before income taxes	231		192		469		384
Provision for income taxes	89		74		181		148
Net income	$	142	$	118	$	288	$	236
Basic earnings per share	$	0.77	$	0.65	$	1.55	$	1.31
Weighted average shares outstanding	185.3		182.2		185.3		180.6
Diluted earnings per share	$	0.76	$	0.64	$	1.54	$	1.29
Weighted average shares outstanding, diluted basis	186.9		184.6		187.0		182.8
Dividends declared per common share	$	0.20	$	0.14	$	2.40	$	0.28

The accompanying notes are an integral part of these consolidated financial statements.

2

Whole Foods Market, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)

	Twelve weeks ended					Twenty-eight weeks ended
	April 14, 2013			April 8, 2012		April 14, 2013			April 8, 2012
Net income	$	142		$	118	$	288		$	236
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(3		)	2		(5		)	3
Other comprehensive income (loss), net of tax	(3		)	2		(5		)	3
Comprehensive income	$	139		$	120	$	283		$	239

The accompanying notes are an integral part of these consolidated financial statements.

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Whole Foods Market, Inc.

Consolidated Statementsof Shareholders’ Equity(unaudited)

Twenty-eight weeks endedApril 14, 2013 and fiscal year ended September 30, 2012

(In millions)

	Shares outstanding		Common stock		Common stock in treasury			Accumulated other comprehensive income			Retained earnings			Total shareholders’ equity
Balances at September 25, 2011	178.9		$	2,121	$	—		$	—		$	870		$	2,991
Net income	—		—		—			—			466			466
Other comprehensive income, net of tax	—		—		—			5			—			5
Dividends ($0.56 per common share)	—		—		—			—			(103		)	(103		)
Issuance of common stock pursuant to team member stock plans	6.9		366		—			—			—			366
Purchase of treasury stock	(0.4	)	—		(28		)	—			—			(28		)
Excess tax benefit related to exercise of team member stock options	—		63		—			—			—			63
Share-based payment expense	—		42		—			—			—			42
Balances at September 30, 2012	185.4		2,592		(28		)	5			1,233			3,802
Net income	—		—		—			—			288			288
Other comprehensive loss, net of tax	—		—		—			(5		)	—			(5		)
Dividends ($2.40 per common share)	—		—		—			—			(444		)	(444		)
Issuance of common stock pursuant to team member stock plans	0.5		16		—			—			—			16
Purchase of treasury stock	(0.7	)	—		(63		)	—			—			(63		)
Excess tax benefit related to exercise of team member stock options	—		8		—			—			—			8
Share-based payment expense	—		30		—			—			—			30
Balances at April 14, 2013	185.2		$	2,646	$	(91	)	$	—		$	1,077		$	3,632

The accompanying notes are an integral part of these consolidated financial statements.

4

Whole Foods Market, Inc.

Consolidated Statementsof Cash Flows (unaudited)

(In millions)

	Twenty-eight weeks ended
	April 14, 2013			April 8, 2012
Cash flows from operating activities
Net income	$	288		$	236
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	179			162
Share-based payment expense	30			20
LIFO expense	2			1
Deferred income tax (benefit) expense	(2		)	6
Excess tax benefit related to exercise of team member stock options	(8		)	(15		)
Accretion of premium/discount on marketable securities	16			5
Deferred lease liabilities	22			37
Other	6			1
Net change in current assets and liabilities:
Accounts receivable	6			(19		)
Merchandise inventories	(9		)	(29		)
Prepaid expenses and other current assets	8			14
Accounts payable	(17		)	6
Accrued payroll, bonus and other benefits due team members	27			19
Other current liabilities	45			71
Net change in other long-term liabilities	(3		)	2
Net cash provided by operating activities	590			517
Cash flows from investing activities
Development costs of new locations	(157		)	(115		)
Other property and equipment expenditures	(107		)	(99		)
Purchases of available-for-sale securities	(528		)	(1,321		)
Sales and maturities of available-for-sale securities	825			789
Increase in restricted cash	(7		)	(13		)
Payment for purchase of acquired entity	(22		)	—
Other investing activities	(7		)	(1		)
Net cash used in investing activities	(3		)	(760		)
Cash flows from financing activities
Common stock dividends paid	(434		)	(43		)
Issuance of common stock	16			237
Purchase of treasury stock	(63		)	(4		)
Excess tax benefit related to exercise of team member stock options	8			15
Net cash (used in) provided by financing activities	(473		)	205
Effect of exchange rate changes on cash and cash equivalents	(1		)	1
Net change in cash and cash equivalents	113			(37		)
Cash and cash equivalents at beginning of period	89			212
Cash and cash equivalents at end of period	$	202		$	175
Supplemental disclosure of cash flow information:
Federal and state income taxes paid	$	178		$	91

The accompanying notes are an integral part of these consolidated financial statements.

5

Whole Foods Market, Inc.

Notes to Consolidated Financial Statements (unaudited)

April 14, 2013

(1) Basis of Presentation

The accompanying unaudited consolidated financial statements of Whole Foods Market, Inc. and its consolidated subsidiaries (collectively “Whole Foods Market,” “Company,” or “we”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation. Where appropriate, we have reclassified prior years’ financial statements to conform to current year presentation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal year 2013 is a 52-week year and fiscal year 2012 was a 53-week year. The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets. The following is a summary of percentage sales by geographic area for the periods indicated:

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Sales:
United States	96.7	%	96.8	%	96.6	%	96.8	%
Canada and United Kingdom	3.3		3.2		3.4		3.2
Total sales	100.0	%	100.0	%	100.0	%	100.0	%

The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated:

	April 14, 2013		September 30, 2012
Long-lived assets, net:
United States	95.5	%	95.2	%
Canada and United Kingdom	4.5		4.8
Total long-lived assets, net	100.0	%	100.0	%

(2) Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force),” which amends Accounting Standards Codification (“ASC”) 405, “Liabilities.” The amendments provide guidance on the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings, for which the total amount of the obligation is fixed at the reporting date. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied retrospectively. The provisions are effective for the Company’s first quarter of fiscal year ending September 27, 2015. We do not expect the adoption of these provisions to have a significant impact the Company’s consolidated financial statements.

Effective October 1, 2012, the Company concurrently adopted ASU No. 2011-05, “Presentation of Comprehensive Income,” and ASU No. 2013-02, “Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income,” both of which amend ASC 220, “Comprehensive Income.” In adopting ASU No. 2011-05, which requires that all nonowner changes in stockholders’ equity be presented in either a single statement of comprehensive income or two separate but consecutive statements, the Company added Consolidated Statements of Comprehensive Income following our Consolidated Statements of Operations. The amended guidance in ASU No. 2013-02 requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income. The adoption of ASU No. 2013-02 did not have a significant impact on the Company’s consolidated financial statements.

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(3) Fair Value Measurements

The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities generally consisting of state and municipal obligations and variable-rate demand notes which hold high credit ratings. These instruments are valued using a series of multi-dimensional relational models and 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.

The Company held the following financial assets at fair value, based on the hierarchy input levels indicated, on a recurring basis (in millions):

April 14, 2013	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	21	$	—	$	—	$	21
Municipal bonds	—		19		—		19
Marketable securities - available-for-sale:
Municipal bonds	—		973		—		973
Variable-rate demand notes	—		65		—		65
Total	$	21	$	1,057	$	—	$	1,078

September 30, 2012	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	16	$	—	$	—	$	16
Municipal bonds	—		8		—		8
Marketable securities - available-for-sale:
Commercial paper	—		10		—		10
Corporate bonds	—		11		—		11
Municipal bonds	—		983		—		983
Variable-rate demand notes	—		348		—		348
Total	$	16	$	1,360	$	—	$	1,376

(4) Investments

The Company holds investments in marketable securities, generally commercial paper, corporate bonds, municipal bonds and variable-rate demand notes, 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):

	April 14, 2013		September 30, 2012
Short-term marketable securities - available-for-sale:
Commercial paper	$	—	$	10
Corporate bonds	—		5
Municipal bonds	811		768
Variable-rate demand notes	65		348
Total short-term marketable securities	$	876	$	1,131
Long-term marketable securities - available-for-sale:
Corporate bonds	$	—	$	6
Municipal bonds	162		215
Total long-term marketable securities	$	162	$	221

At April 14, 2013 and September 30, 2012, available-for-sale securities totaling approximately $425 million and $382 million, respectively, were in unrealized loss positions. Gross unrealized holding gains and losses were not material at April 14, 2013

7

and September 30, 2012. There were no investments in a continuous unrealized loss position for greater than 12 months at April 14, 2013 or September 30, 2012.

At April 14, 2013, the average effective maturity of the Company’s short- and long-term investments was approximately 4 months and 16 months, respectively, compared to approximately 5 months and 15 months, respectively, at September 30, 2012.

(5) Goodwill and Other Intangible Assets

The Company recorded goodwill totaling approximately $16 million related to the acquisition of six retail locations during the twenty-eight weeks ended April 14, 2013. No additions or adjustments to goodwill were recorded during fiscal year 2012. The Company acquired approximately $6 million in definite-lived intangible assets, primarily favorable lease assets related to the acquisition of six retail locations, during the twenty-eight weeks ended April 14, 2013. Acquisitions of definite-lived intangible assets were not material during fiscal year 2012. The components of intangible assets were as follows (in millions):

	April 14, 2013					September 30, 2012
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Definite-lived contract-based	$	102	$	(38	)	$	95	$	(35	)
Definite-lived marketing-related and other	1		(1		)	2		(2		)
Indefinite-lived contract-based	2					2
	$	105	$	(39	)	$	99	$	(37	)

Amortization associated with intangible assets totaled approximately $1 million and $2 million for the twelve and twenty-eight weeks ended April 14, 2013, respectively, and approximately $1 million and $3 million, respectively, for the same periods of the prior fiscal year. Future amortization associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions):

Remainder of fiscal year 2013	$	2
Fiscal year 2014	5
Fiscal year 2015	5
Fiscal year 2016	4
Fiscal year 2017	4
Future fiscal years	44
Total estimated future amortization associated with definite-lived intangible assets	$	64

(6) Reserves for Closed Properties

Following is a summary of store closure reserve activity during the twenty-eight weeks ended April 14, 2013 and fiscal year ended September 30, 2012 (in millions):

	April 14, 2013			September 30, 2012
Beginning balance	$	41		$	45
Additions	2			4
Usage	(7		)	(10		)
Adjustments	—			2
Ending balance	$	36		$	41

Additions to store closure reserves primarily relate to the accretion of interest on existing reserves. Usage included approximately $7 million primarily related to ongoing cash rental payments during the twenty-eight weeks ended April 14, 2013. During the fiscal year ended September 30, 2012, usage included approximately $10 million in ongoing cash rental payments.

8

(7) Shareholders’ Equity

Dividends per Common Share

Following is a summary of dividends declared per common share during fiscal years 2013 and 2012 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2013:
November 29, 2012	$	2.00	December 10, 2012	December 21, 2012	$	371
November 7, 2012	0.20		January 18, 2013	January 29, 2013	37
March 15, 2013 (1)	0.20		April 12, 2013	April 23, 2013	37
Fiscal year 2012:
November 2, 2011	$	0.14	January 13, 2012	January 24, 2012	$	25
March 9, 2012	0.14		April 5, 2012	April 17, 2012	26
May 30, 2012	0.14		June 29, 2012	July 10, 2012	26
September 6, 2012	0.14		September 28, 2012	October 9, 2012	26

⁽¹⁾ Dividend accrued at April 14, 2013

Treasury Stock

During the first quarter of fiscal year 2012, the Company’s Board of Directors authorized a share repurchase program in the amount of $200 million through November 1, 2013. During the first quarter of fiscal year 2013, the Company’s Board of Directors authorized a new share repurchase program whereby the Company may repurchase an amount of outstanding shares of common stock of the Company up to an aggregate amount of $300 million through December 31, 2014. This repurchase program is in addition to, and does not supersede or modify, the Company’s previously authorized program.

Share repurchase activity for the periods indicated was as follows (in millions, except per share amounts):

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Number of common shares acquired	0.5		—		0.7		0.1
Average price per common share acquired	$	86.92	$	—	$	88.96	$	63.70
Total cost of common shares acquired	$	37	$	—	$	63	$	4

The Company currently has approximately $409 million in share repurchase authority. Under the repurchase programs, purchases can be made from time to time using a variety of methods, which may include open market purchases or purchases through a Rule 10b5-1 trading plan, all in accordance with the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic conditions and market conditions, and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s discretion.

Subsequent Event

Subsequent to the end of the second quarter of fiscal year 2013, the Company announced that its Board of Directors approved a two-for-one stock split of the Company’s outstanding common stock to be effected through a stock dividend. Shareholders of record as of the close of business on May 17, 2013 will be entitled to a stock dividend on May 29, 2013 of one additional share of common stock for each share of common stock they own. Based on the total number of shares of common stock outstanding as of April 14, 2013, the stock split will increase the total number of shares of common stock outstanding from approximately 185.2 million shares to 370.4 million shares, out of the 600.0 million shares of common stock currently authorized. No adjustments have been made to share or per share amounts in the accompanying financial statements and applicable disclosures for the effects of this future stock split.

(8) Earnings per Share

The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period, excluding unvested restricted stock. 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 unvested restricted stock awards.

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A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts):

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Net income (numerator for basic and diluted earnings per share)	$	142	$	118	$	288	$	236
Weighted average common shares outstanding (denominator for basic earnings per share)	185.3		182.2		185.3		180.6
Potential common shares outstanding:
Incremental shares from assumed exercise of stock options	1.6		2.4		1.7		2.2
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	186.9		184.6		187.0		182.8
Basic earnings per share	$	0.77	$	0.65	$	1.55	$	1.31
Diluted earnings per share	$	0.76	$	0.64	$	1.54	$	1.29

The computation of diluted earnings per share for the twelve and twenty-eight weeks ended April 14, 2013 does not include options to purchase approximately 3.6 million shares of common stock due to their antidilutive effect. For the twelve and twenty-eight weeks ended April 8, 2012, the number of stock options excluded from the calculation of diluted earnings per share due to their antidilutive effect was not material. The dilutive effect of unvested restricted stock awards was not material for the twelve and twenty-eight weeks ended April 14, 2013 or the same periods of the prior fiscal year.

(9) Share-Based Payments

Total share-based payment expense before income taxes recognized during the twelve and twenty-eight weeks ended April 14, 2013 totaled approximately $13 million and $30 million, respectively, and approximately $9 million and $20 million, respectively, for the same periods of the prior fiscal year. Share-based payment expense was included in the following line items on the Consolidated Statements of Operations for the periods indicated (in millions):

	Twelve weeks ended						Twenty-eight weeks ended
	April 14, 2013			April 8, 2012			April 14, 2013			April 8, 2012
Cost of goods sold and occupancy costs	$	—		$	—		$	1		$	1
Direct store expenses	8			5			17			11
General and administrative expenses	5			4			12			8
Share-based payment expense before income taxes	13			9			30			20
Income tax benefit	(5		)	(4		)	(11		)	(8		)
Net share-based payment expense	$	8		$	5		$	19		$	12

Stock Options

At April 14, 2013 and September 30, 2012, approximately 8.4 million shares of the Company’s common stock were available for future stock incentive grants. At April 14, 2013 and September 30, 2012, there was approximately $110 million and $135 million of unrecognized share-based payment expense, respectively, related to unvested stock options, net of estimated forfeitures, related to approximately 7.2 million shares and 7.1 million shares, respectively. We anticipate this expense to be recognized over a weighted average period of approximately three years.

Restricted Stock

During the twelve and twenty-eight weeks ended April 14, 2013, the Company awarded 36,000 and 41,400 shares of restricted common stock, respectively, pursuant to the Whole Foods Market 2009 Stock Incentive Plan. Fair value of the restricted share issuances on grant date totaled approximately $3 million and $4 million for the twelve and twenty-eight weeks ended April 14, 2013, respectively. Restricted shares vest over four or seven year terms. Share-based payment expense related to restricted shares, included in the “General and administrative expenses” line item on the Consolidated Statements of Operations, was not material for the twelve and twenty-eight weeks ended April 14, 2013. At April 14, 2013, there was approximately $4 million of unrecognized share-based payment expense related to unvested restricted stock. The number of shares, grant date fair value, and share-based payment expense related to the issuance of restricted common stock during fiscal year 2012 were not material.

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(10) Commitments and Contingencies

The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters in a manner that we believe best serves the interests of our stakeholders. Our primary contingencies are associated with insurance and self-insurance obligations and litigation matters. Estimation of our insurance and self-insurance liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing and estimating the outcomes of these matters involve substantial uncertainties.

The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. Insurance and legal settlement liabilities are included in the “Other current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities.

(11) Related Party Transactions

The Company provides ongoing support to two independent non-profit organizations: Whole Planet Foundation and Whole Kids Foundation (the “Foundations”). Whole Planet Foundation’s mission is to empower the poor through microcredit, with a focus on developing-world communities that supply the Company’s stores with product. Whole Kids Foundation is a non-profit organization dedicated to improving children’s nutrition through partnerships with schools, educators, and other organizations. Members of the Company’s management comprise the Board of Directors of each of the Foundations. Additionally, the Company provides administrative support and covers all operating costs of the Foundations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Disclaimer on Forward-looking Statements

We wish to caution you that there are risks and uncertainties that could cause our actual results to be materially different from those indicated by forward-looking statements that we make from time to time in filings with the Securities and Exchange Commission, news releases, reports, proxy statements, registration statements and other written communications, as well as forward-looking statements made from time to time by representatives of our Company. These risks and uncertainties include those listed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. These risks and uncertainties and additional risks and uncertainties not presently known to us or that we currently deem immaterial may cause our business, financial condition, operating results and cash flows to be materially adversely affected. Except for the historical information contained herein, the matters discussed in this analysis are forward-looking statements that involve risks and uncertainties, including general business conditions, changes in overall economic conditions that impact consumer spending, including fuel prices and housing market trends, the impact of competition and other factors which are often beyond the control of the Company. The Company does not undertake any obligation to update forward-looking statements.

This information should be read in conjunction with the consolidated financial statements and the accompanying notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012.

Overview

Whole Foods Market, Inc. is the world’s leading retailer of natural and organic foods and America’s first national “Certified Organic” grocer. Our Company mission is to promote the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available. Through our growth, we have had a significant and positive impact on the natural and organic foods movement throughout the United States, helping lead the industry to nationwide acceptance. As of April 14, 2013, we operated 348 stores: 333 stores in 40 U.S. states and the District of Columbia; 8 stores in Canada; and 7 stores in the United Kingdom. We have one operating segment, natural and organic foods supermarkets.

Our continued growth depends on our ability to increase sales in our identical stores and open new stores. New stores generally become profitable within the first year of operation, although some new stores may incur operating losses for the first several years of operation. The Company’s average weekly sales and gross profit as a percentage of sales are typically highest in the second and third fiscal quarters, and lowest in the fourth fiscal quarter due to seasonally slower sales during the summer months. Gross profit as a percentage of sales is also typically lower in the first fiscal quarter due to the product mix of holiday sales.

Sales of a store are deemed to be comparable commencing in the fifty-third full week after the store was opened or acquired. Stores acquired in purchase acquisitions enter the comparable store sales base effective the fifty-third full week following the date of the acquisition. Identical store sales exclude sales from relocated stores and remodeled stores with expansions in square footage greater than 20% from the comparable calculation to reduce the impact of square footage growth on the comparison. Stores closed for eight or more days are excluded from the comparable and identical store base from the first fiscal week of closure until re-opened for a full fiscal week.

The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal year 2013 is a 52-week year and fiscal year 2012 was a 53-week year, with the additional week falling the fourth fiscal quarter.

Economic and Industry Factors

Food retailing is a large, intensely competitive industry. Our competition varies across the Company and includes but is not limited to local, regional, national and international conventional and specialty supermarkets, natural foods stores, warehouse membership clubs, online retailers, smaller specialty stores, farmers’ markets and restaurants, each of which competes with us on the basis of store ambiance and experience, product selection, quality, customer service, price or a combination of these factors.

We offer a broad and differentiated selection of high-quality natural and organic products with a strong emphasis on perishable foods. Whole Foods Market defines natural foods as foods that are minimally processed, largely or completely free of artificial ingredients, preservatives and other non-naturally occurring chemicals and as near to their whole, natural state as possible. Organic foods are foods grown through methods that emphasize the use of renewable resources and the conservation of soil and water to enhance environmental quality. We aspire to become an international brand synonymous with not just natural and organic foods, but also with being the highest quality food retailer in every community in which we are located. While we are focused on value, the Whole Foods Market brand is defined by our high quality standards, and we continue to find ways to further differentiate ourselves from other food retailers.

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Highlights for the Second Quarter of Fiscal Year 2013

During the twelve weeks ended April 14, 2013, we delivered another quarter of strong sales and earnings results, producing a 19.1% increase in diluted earnings per share to $0.76 and a record 7.5% operating margin. For the twelve weeks ended April 14, 2013:

• Sales increased 13.3% over the same period of the prior year to $3.0 billion driven by a 6.9% comparable store sales increase. Identical store sales increased 6.6% over the prior year;

• Gross profit as a percentage of sales was 36.4%;

• Operating income as a percentage of sales totaled 7.5%;

• EBITDA margin improved to 10.1%; and

• Return on invested capital (“ROIC”) increased to 16.7%.

We produced approximately $287 million in cash flows from operations and invested approximately $109 million in capital expenditures, of which approximately $61 million related to new stores. During the twelve weeks ended April 14, 2013, we opened six new stores. In addition, the Company paid cash dividends to common shareholders totaling approximately $37 million and repurchased approximately $37 million of its common stock. At April 14, 2013, we had cash, restricted cash and investments totaling approximately $1.3 billion.

On May 7, 2013, the Company announced that its Board of Directors approved a two-for-one stock split of the Company’s outstanding common stock to be effected through a stock dividend. Shareholders of record as of the close of business on May 17, 2013 will be entitled to a stock dividend on May 29, 2013 of one additional share of common stock for each share of common stock they own. Based on the total number of shares of common stock outstanding as of April 14, 2013, the stock split will increase the total number of shares of common stock outstanding from approximately 185.2 million shares to 370.4 million shares, out of the 600.0 million shares of common stock currently authorized. No adjustments have been made to share or per share amounts in the accompanying financial statements and applicable disclosures for the effects of this future stock split.

Updated Outlook for Fiscal Year 2013

Based on our year-to-date results and updated assumptions, the Company is narrowing its comparable and identical store sales growth ranges for the fiscal year, and raising the diluted earnings per share range to $2.86 to $2.89. The Company’s outlook for diluted earnings per share does not reflect the announced two-for-one stock split. The following table provides additional information on the Company’s results through April 14, 2013 and updated expectations for the remainder of fiscal year 2013.

	Twenty-eight weeks ended April 14, 2013	Implied third and fourth quarters of fiscal year 2013	Estimated fiscal year 2013
Sales growth	13.6%	7.0% - 9.0%	10.0% - 11.0%
Comparable store sales growth	7.1%	6.3% - 8.0%	6.7% - 7.5%
Identical store sales growth	6.8%	6.0% - 7.6%	6.5% - 7.2%
General and administrative expenses as a percentage of sales	3.0%	3.2%	3.1%
Pre-opening and relocation expenses	$31 million	$38 - $41 million	$69 - $72 million
Diluted earnings per share	$1.54	$1.32 - $1.35	$2.86 - $2.89
Diluted earnings per share growth	19.3%	7.0% - 10.0%	13.0% - 15.0%

On a 52-week to 52-week basis, excluding the impact of the extra week in the fourth quarter of fiscal year 2012, the Company expects total sales growth of 12% to 14% and diluted earnings per share growth of 15% to 17%.

The Company expects ending square footage growth of 8% in fiscal year 2013. The Company expects capital expenditures for fiscal year 2013 to be in the range of approximately $565 million to $615 million, which includes the opening of 32 new stores. In addition, the Company expects a significant year-over-year increase in pre-opening and relocation expenses in the fourth quarter of fiscal year 2013 based on the opening of 12 new stores along with a high number of openings anticipated in the first quarter of fiscal year 2014.

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Results of Operations

The following table sets forth the Company’s statements of operations data expressed as a percentage of sales:

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of goods sold and occupancy costs	63.6		63.7		64.4		64.6
Gross profit	36.4		36.3		35.6		35.4
Direct store expenses	25.4		25.5		25.4		25.6
General and administrative expenses	3.0		3.2		3.0		3.1
Pre-opening expenses	0.3		0.4		0.4		0.3
Relocation, store closure and lease termination costs	0.1		—		0.1		0.1
Operating income	7.5		7.1		6.7		6.3
Investment and other income, net of interest expense	0.1		0.1		0.1		0.1
Income before income taxes	7.6		7.2		6.8		6.3
Provision for income taxes	2.9		2.8		2.6		2.4
Net income	4.7	%	4.4	%	4.2	%	3.9	%

Figures may not sum due to rounding.

Sales for the twelve and twenty-eight weeks ended April 14, 2013 totaled approximately $3.0 billion and $6.9 billion, respectively, increasing 13.3% and 13.6%, respectively, over the same periods of the prior fiscal year. Comparable store sales increased 6.9% and 7.1% during the twelve and twenty-eight weeks ended April 14, 2013, respectively. As of April 14, 2013, there were 320 locations in the comparable store base. Identical store sales, excluding four relocations and one expansion, increased 6.6% during the twelve weeks and, excluding four relocations and three expansions, increased 6.8% during the twenty-eight weeks ended April 14, 2013. Relocations and expansions are removed from the comparable calculation to reduce the impact of square footage growth on the comparison. Identical store sales growth during the twelve weeks ended April 14, 2013 was driven by approximately equal increases in transaction count and basket size. This reflects a shift from our historical mix of 60% transaction count and 40% basket growth. The Company attributes the shift to more severe winter weather across several regions this year versus last, resulting in customers making fewer trips and buying larger baskets per trip. At April 14, 2013, there were 32 stores that were opened or acquired 52 weeks or less which contributed approximately $167 million and $341 million to total sales during the twelve and twenty-eight weeks ended April 14, 2013, respectively.

The Company’s gross profit as a percentage of sales for the twelve and twenty-eight weeks ended April 14, 2013 was approximately 36.4% and 35.6%, respectively, compared to approximately 36.3% and 35.4%, respectively, for the same periods of the prior fiscal year. Gross profit as a percentage of sales increased5 basis points and 14 basis points for the twelve and twenty-eight weeks ended April 14, 2013, respectively, compared to the same periods of the prior fiscal year. Leverage in occupancy costs drove the slight improvement in gross profit as a percentage of sales during the twelve weeks ended April 14, 2013, with cost of goods sold flat year over year. Our results reflect our commitment to expanding our value offerings across the store, increasing our promotional activity, and improving our relative price positioning, as well as our efforts around shrink reduction. The increase in gross profit as a percentage of sales during the twenty-eight weeks ended April 14, 2013 was due primarily to leverage in cost of goods sold.

Direct store expenses as a percentage of sales for both the twelve and twenty-eight weeks ended April 14, 2013 were approximately 25.4% compared to approximately 25.5% and 25.6%, respectively, for the same periods of the prior fiscal year. The 14 basis point and 23 basis point improvement in direct store expenses as a percentage of sales during the twelve and twenty-eight weeks ended April 14, 2013, respectively, primarily reflects leverage in wages.

General and administrative expenses as a percentage of sales for both the twelve and twenty-eight weeks ended April 14, 2013 were approximately 3.0% compared to approximately 3.2% and 3.1%, respectively, for the same periods of the prior fiscal year. The 24 basis point and 14 basis point decrease in general and administrative expenses as a percentage of sales for the twelve and twenty-eight weeks ended April 14, 2013, respectively, reflects leverage in wages, partially offset by a 3 basis point and 4 basis point increase, respectively, in share-based payment expense.

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Share-based payment expense was included in the following line items on the Consolidated Statements of Operations for the periods indicated (in millions):

	Twelve weeks ended						Twenty-eight weeks ended
	April 14, 2013			April 8, 2012			April 14, 2013			April 8, 2012
Cost of goods sold and occupancy costs	$	—		$	—		$	1		$	1
Direct store expenses	8			5			17			11
General and administrative expenses	5			4			12			8
Share-based payment expense before income taxes	13			9			30			20
Income tax benefit	(5		)	(4		)	(11		)	(8		)
Net share-based payment expense	$	8		$	5		$	19		$	12

Pre-opening expenses totaled approximately $10 million and $24 million for the twelve and twenty-eight weeks ended April 14, 2013, respectively, and approximately $11 million and $21 million, respectively, for the same periods of the prior fiscal year.

Relocation, store closure and lease termination costs totaled approximately $3 million and $7 million for the twelve and twenty-eight weeks ended April 14, 2013, respectively, compared to approximately $1 million and $4 million, respectively, for the same periods of the prior fiscal year.

The numbers of stores opened and relocated were as follows:

	Twelve weeks ended		Twenty-eight weeks ended
	April 14, 2013	April 8, 2012	April 14, 2013	April 8, 2012
New stores	4	3	13	9
Relocated stores	2	—	3	—

Investment and other income, net of interest expense, which includes interest income, investment gains and losses, rental income and other income, totaled approximately $3 million and $6 million for the twelve and twenty-eight weeks ended April 14, 2013, respectively, compared to approximately $2 million and $4 million, respectively, for the same periods of the prior fiscal year.

Income taxes resulted in an effective tax rate of approximately 38.5% and 38.6% for the twelve and twenty-eight weeks ended April 14, 2013, respectively, compared to approximately 38.6% for the same periods of the prior fiscal year.

Non-GAAP measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides information regarding EBITDA margin and ROIC as additional information about its operating results. These measures are not in accordance with, or an alternative to, GAAP. We believe that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to our results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of incentive compensation.

The following is a tabular reconciliation of the non-GAAP financial measure EBITDA margin to GAAP net income, which the Company believes is the most directly comparable GAAP financial measure. EBITDA margin was as follows (in millions):

	Twelve weeks ended						Twenty-eight weeks ended
	April 14, 2013			April 8, 2012			April 14, 2013			April 8, 2012
Net income	$	142		$	118		$	288		$	236
Provision for income taxes	89			74			181			148
Investment and other income, net of interest expense	(3		)	(2		)	(6		)	(4		)
Operating income	228			190			463			380
Depreciation and amortization	77			69			179			162
EBITDA	$	305		$	259		$	642		$	542
Sales	$	3,027		$	2,670		$	6,883		$	6,061
EBITDA margin	10.1%			9.7%			9.3%			8.9%

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The Company defines ROIC as annualized adjusted earnings divided by average invested capital. Earnings are annualized on a 52-week basis. Adjustments to earnings are defined in the following tabular reconciliation. Invested capital reflects an average of the trailing four quarters. ROIC was as follows (in millions):

	Twelve weeks ended						Twenty-eight weeks ended
	April 14, 2013			April 8, 2012			April 14, 2013			April 8, 2012
Net income	$	142		$	118		$	288		$	236
Interest expense, net of tax	—			—			—			—
Adjusted earnings	142			118			288			236
Total rent expense, net of tax (1)	51			47			117			109
Estimated depreciation on capitalized operating leases, net of tax (2)	(34		)	(32		)	(78		)	(73		)
Adjusted earnings, including interest related to operating leases	159			133			327			272
Annualized adjusted earnings	$	615		$	510		$	535		$	438
Annualized adjusted earnings, including interest related to operating leases	$	688		$	578		$	607		$	506
Average working capital, excluding current portion of long-term debt	$	975		$	691		$	975		$	691
Average property and equipment, net	2,196			2,005			2,196			2,005
Average other assets	1,004			860			1,004			860
Average other liabilities	(496		)	(419		)	(496		)	(419		)
Average invested capital	$	3,679		$	3,137		$	3,679		$	3,137
Average estimated asset base of capitalized operating leases (3)	2,841			2,589			2,841			2,589
Average invested capital, adjusted for capitalization of operating leases	$	6,520		$	5,726		$	6,520		$	5,726
ROIC	16.7%			16.3%			14.5%			14.0%
ROIC, adjusted for capitalization of operating leases	10.6%			10.1%			9.3%			8.8%

⁽¹⁾ Total rent includes minimum base rent of all tendered leases

⁽²⁾ Estimated depreciation equals two-thirds of total rent expense

⁽³⁾ Estimated asset base equals eight times total annualized rent expense

Liquidity and Capital Resources and Changes in Financial Condition

The following table summarizes the Company’s cash and short-term investments as of the dates indicated (in millions):

	April 14, 2013		September 30, 2012
Cash and cash equivalents	$	202	$	89
Short-term investments - available-for-sale securities	876		1,131
Total	$	1,078	$	1,220

Additionally, the Company held long-term investments in available-for-sale securities totaling approximately $162 million and $221 million at April 14, 2013 and September 30, 2012, respectively.

We generated cash flows from operating activities totaling approximately $590 million during the twenty-eight weeks ended April 14, 2013 compared to approximately $517 million during the same period of the prior fiscal year. Cash flows from operating activities resulted primarily from our net income plus non-cash expenses and changes in operating working capital.

Net cash used in investing activities totaled approximately $3 million for the twenty-eight weeks ended April 14, 2013 compared to approximately $760 million for the same period of the prior fiscal year. Net sales of available-for-sale securities totaled approximately $297 million during the twenty-eight weeks ended April 14, 2013 compared to net purchases of approximately $532 million in the same period of the prior fiscal year. Our principal historical capital requirements have been the funding of the development or acquisition of new stores and acquisition of property and equipment for existing stores. The required cash investment for new stores varies depending on the size of the new store, geographic location, degree of work performed by the

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landlord and complexity of site development issues. Capital expenditures for the twenty-eight weeks ended April 14, 2013 totaled approximately $264 million, of which approximately $157 million was for new store development. Capital expenditures for the twenty-eight weeks ended April 8, 2012 totaled approximately $214 million, of which approximately $115 million was for new store development.

The following table provides information about the Company’s store development activities:

	Stores opened during fiscal year 2012	Stores opened during fiscal year 2013 as of May 7, 2013	Properties tendered as of May 7, 2013	Total leases signed as of May 7, 2013 (1)
Number of stores (including relocations)	25	17	23	89
Number of relocations	1	3	3	8
New markets	8	6	7	22
Average store size (gross square feet)	35,500	34,500	37,200	37,200
Total square footage	887,400	586,600	855,700	3,326,600
Average tender period in months	7.9	9.3
Average pre-opening expense per store	$1.7 million
Average pre-opening rent per store	$0.6 million

⁽¹⁾ Includes leases for properties tendered

The following table provides information about the Company’s estimated store openings through fiscal year 2014:

	Estimated openings	Relocations	Average new store square footage	Ending square footage growth
Fiscal year 2013	32	5	35,000	8%
Fiscal year 2014	33 - 38	2 - 3	38,000	8% - 9%

We believe we will produce operating cash flows in excess of the capital expenditures needed to open the 89 stores in our store development pipeline and are well positioned to accelerate our ending square footage growth through fiscal year 2014 and hopefully beyond.

Over the long term, the Company considers 1,000 stores to be a reasonable indication of its market opportunity in the United States as the Whole Foods Market brand continues to strengthen, consumer demand for natural and organic products continues to increase, and the Company’s flexibility on new store size opens up additional market opportunities. The Company believes significant opportunities exist in Canada and the United Kingdom as well. Our growth strategy is to expand primarily through new store openings, with the majority of our new stores to fall in the range of 35,000 to 45,000 square feet going forward.

Net cash used in financing activities totaled approximately $473 million for the twenty-eight weeks ended April 14, 2013 compared to net cash provided by financing activities of approximately $205 million for the same period of the prior fiscal year.

During the first quarter of fiscal year 2013, the Company’s Board of Directors declared a 43% increase in the quarterly dividend to $0.20 per common share and a special dividend of $2.00 per common share. Following is a summary of dividends declared per common share during fiscal years 2013 and 2012 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2013:
November 29, 2012	$	2.00	December 10, 2012	December 21, 2012	$	371
November 7, 2012	0.20		January 18, 2013	January 29, 2013	37
March 15, 2013 (1)	0.20		April 12, 2013	April 23, 2013	37
Fiscal year 2012:
November 2, 2011	$	0.14	January 13, 2012	January 24, 2012	$	25
March 9, 2012	0.14		April 5, 2012	April 17, 2012	26
May 30, 2012	0.14		June 29, 2012	July 10, 2012	26
September 6, 2012	0.14		September 28, 2012	October 9, 2012	26

⁽¹⁾ Dividend accrued at April 14, 2013

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The Company will pay future dividends at the discretion of the Company’s Board of Directors. The continuation of these payments, the amount of such dividends, and the form in which dividends are paid (cash or stock) depend on many factors, including the results of operations and the financial condition of the Company. Subject to these qualifications, the Company currently expects to pay dividends on a quarterly basis.

Net proceeds to the Company from the exercise of stock options by team members for the twenty-eight weeks ended April 14, 2013 totaled approximately $16 million compared to approximately $237 million for the same period of the prior fiscal year. The Company intends to keep its broad-based stock option program in place, but also intends to limit the number of shares granted in any one year so that annual earnings dilution from share-based payment expense will not exceed 10%. The Company believes this strategy is best aligned with its stakeholder philosophy because it limits future earnings dilution from options and at the same time retains the broad-based stock option plan, which the Company believes is important to team member morale, its unique corporate culture and its success. At April 14, 2013 and September 30, 2012, approximately 8.4 million shares of our common stock were available for future stock incentive grants.

During the first quarter of fiscal year 2012, the Company’s Board of Directors authorized a share repurchase program in the amount of $200 million through November 1, 2013. During the first quarter of fiscal year 2013, the Company’s Board of Directors authorized a new share repurchase program whereby the Company may repurchase an amount of outstanding shares of common stock of the Company up to an aggregate amount of $300 million through December 31, 2014. This repurchase program is in addition to, and does not supersede or modify, the Company’s previously authorized program.

Share repurchase activity for the periods indicated was as follows (in millions, except per share amounts):

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Number of common shares acquired	0.5		—		0.7		0.1
Average price per common share acquired	$	86.92	$	—	$	88.96	$	63.70
Total cost of common shares acquired	$	37	$	—	$	63	$	4

The Company currently has approximately $409 million in share repurchase authority. Under the repurchase programs, purchases can be made from time to time using a variety of methods, which may include open market purchases or purchases through a Rule 10b5-1 trading plan, all in accordance with the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic conditions and market conditions, and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s discretion.

The Company is committed under certain capital leases for rental of certain equipment, buildings and land, and certain operating leases for rental of facilities and equipment. These leases expire or become subject to renewal clauses at various dates through 2054. The following table shows payments due by period on contractual obligations as of April 14, 2013 (in millions):

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Capital lease obligations (including interest)	$	43	$	3	$	5	$	5	$	30
Operating lease obligations (1)	7,150		337		791		840		5,182
Total	$	7,193	$	340	$	796	$	845	$	5,212

⁽¹⁾ Amounts exclude taxes, insurance and other related expense

Gross unrecognized tax benefits and related interest and penalties at April 14, 2013 totaled approximately $5 million. Although a reasonably reliable estimate of the period of cash settlement with respective taxing authorities cannot be determined due to the high degree of uncertainty regarding the timing of future cash outflows associated with the Company’s unrecognized tax benefits, as of April 14, 2013, the Company does not expect tax audit resolution will reduce its unrecognized tax benefits in the next 12 months.

We periodically make other commitments and become subject to other contractual obligations that we believe to be routine in nature and incidental to the operation of the business. Management believes that such routine commitments and contractual obligations do not have a material impact on our business, financial condition or results of operations.

Our principal historical sources of liquidity have included cash generated by operations, available cash and cash equivalents, and short-term investments. Absent any significant change in market condition, we expect planned expansion and other

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anticipated working capital and capital expenditure requirements for the next 12 months will be funded by these sources. There can be no assurance, however, that the Company will continue to generate cash flows at or above current levels or that other sources of capital will be available to us in the future.

Off-Balance Sheet Arrangements

Our off-balance sheet arrangements at April 14, 2013 consist of operating leases disclosed in the above contractual obligations table. We have no other off-balance sheet arrangements that have had, or are reasonably likely to have, a material current or future effect on our consolidated financial statements or financial condition.

Recent Accounting Pronouncements

Recent accounting pronouncements are included in Note 2 to the consolidated financial statements, “Recent Accounting Pronouncements.”

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

For quantitative and qualitative disclosures about market risk, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of our Annual Report on Form 10-K for the fiscal year ended September 30, 2012. Our exposures to market risk have not changed materially since September 30, 2012.

Item 4. Controls and Procedures.

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Co-Chief Executive Officers (principal executive officers) and Chief Financial Officer (principal financial officer), to allow timely decisions regarding required disclosure. The Company’s management, with the participation of the Company’s Co-Chief Executive Officers and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Co-Chief Executive Officers and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

There have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

19

Part II. Other Information

Item 1. Legal Proceedings.

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. 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. 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. However, resolution of contingencies resulting in amounts that vary materially from the Company’s current estimates could have a material adverse effect on the Company’s results of operations, cash flows, or financial condition.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information about the Company’s share repurchase activity during the twelve weeks ended April 14, 2013.

Period (1)	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs (2)	Approximate dollar value of shares that may yet be purchased under the plans or programs (2)
January 21, 2013 - February 17, 2013	161,839	$	87.89	161,839	$	431,460,485
February 18, 2013 - March 17, 2013	263,848	$	86.32	263,848	$	408,868,012
March 18, 2013 - April 14, 2013	—	$	—	—	$	408,868,012
Total	425,687	$	86.92	425,687

⁽¹⁾  Periodic information is presented by reference to our fiscal periods during the second quarter of fiscal year 2013.

⁽²⁾  On November 2, 2011, the Company’s Board of Directors authorized a share repurchase program in the amount of $200 million through November 1, 2013. On November 15, 2012, the Company’s Board of Directors authorized a new share repurchase program whereby the Company may repurchase an amount of outstanding shares of common stock of the Company up to an aggregate amount of $300 million through December 31, 2014. This repurchase program is in addition to, and does not supersede or modify, the Company’s previously authorized program to repurchase an amount of outstanding shares of common stock having an aggregate value of up to $200 million. At April 14, 2013, the Company had approximately $409 million in share repurchase authority. Under the repurchase programs, purchases can be made from time to time using a variety of methods, which may include open market purchases or purchases through a Rule 10b5-1 trading plan, all in accordance with Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic conditions and market conditions, and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s discretion.

20

Item 6. Exhibits.

Exhibit  31.1 (1)	Certification of Co-Chief Executive Officer Pursuant to 17 CFR 240.13a -14(a)
Exhibit  31.2 (1)	Certification of Co-Chief Executive Officer Pursuant to 17 CFR 240.13a - 14(a)
Exhibit  31.3 (1)	Certification of Chief Financial Officer Pursuant to 17 CFR 240.13a - 14(a)
Exhibit  32.1 (2)	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350
Exhibit  32.2 (2)	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350
Exhibit  32.3 (2)	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350
Exhibit  101 (1)	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended April 14, 2013, formatted in eXtensible Business Reporting Language: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to Consolidated Financial Statements

⁽¹⁾  Filed herewith.

⁽²⁾  Furnished herewith.

21

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		WHOLE FOODS MARKET, INC.
Date:	May 17, 2013	By:	/s/ Glenda Flanagan
		Glenda Flanagan
		Executive Vice President and Chief Financial Officer
		(Duly authorized officer and principal financial officer)

22

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, John Mackey, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Whole Foods Market, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 17, 2013
/s/John Mackey
John Mackey
Co-Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Walter Robb, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Whole Foods Market, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 17, 2013
/s/Walter Robb
Walter Robb
Co-Chief Executive Officer

EX-31.3

Exhibit 31.3

CERTIFICATIONS

I, Glenda Flanagan, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Whole Foods Market, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 17, 2013
/s/Glenda Flanagan
Glenda Flanagan
Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification by Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Whole Foods Market, Inc. (the “Company”) for the period ending April 14, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Mackey, Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o (d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/John Mackey

John Mackey

Co-Chief Executive Officer

May 17, 2013

EX-32.2

Exhibit 32.2

Certification by Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Whole Foods Market, Inc. (the “Company”) for the period ending April 14, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter Robb, Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o (d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/Walter Robb

Walter Robb

Co-Chief Executive Officer

May 17, 2013

EX-32.3

Exhibit 32.3

Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the

Sarbanes - Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Whole Foods Market, Inc. (the “Company”) for the period ending April 14, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Glenda Flanagan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o (d)); and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/Glenda Flanagan

Glenda Flanagan

Chief Financial Officer

May 17, 2013

XML

Shareholders' Equity (Details 2) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		4 Months Ended		6 Months Ended		12 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Jan. 20, 2013	Jan. 15, 2012	Apr. 14, 2013	Apr. 08, 2012	Sep. 30, 2012
Treasury Stock [Abstract]
Stock Repurchase Program, Authorized Amount			$ 300	$ 200
Treasury Stock, Shares, Acquired	500,000				700,000	100,000
Treasury Stock Acquired, Average Cost Per Share	$ 86.92				$ 88.96	$ 63.70
Treasury Stock, Value, Acquired, Cost Method	37				63	4	28
Stock Repurchase Program, Remaining Authorized Repurchase Amount					$ 409
Common Stock [Abstract]
Common Stock, Shares, Outstanding	185,200,000				185,200,000		185,400,000
Common Stock, Shares Authorized	600,000,000				600,000,000		600,000,000
Subsequent Event [Member]
Common Stock [Abstract]
Stockholders' Equity Note, Stock Split, Conversion Ratio					2
Stock Split, Number of Shares to Shareholder for Each Share Owned					1
Common Stock, Shares, Estimated Outstanding After Stock Split	370,400,000				370,400,000

XML

Investments (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Apr. 14, 2013	Sep. 30, 2012
Investments [Abstract]
Aggregate available-for-sale securities with unrealized holding losses	$ 425	$ 382
Short-term Investment Average Effective Maturity Period (in months)	4 months	5 months
Long-term Investment Average Effective Maturity Period (in months)	16 months	15 months

XML

Reserves for Closed Properties (Tables)

6 Months Ended

Apr. 14, 2013

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

Following is a summary of store closure reserve activity during the twenty-eight weeks ended April 14, 2013 and fiscal year ended September 30, 2012 (in millions):

	April 14, 2013			September 30, 2012
Beginning balance	$	41		$	45
Additions	2			4
Usage	(7		)	(10		)
Adjustments	—			2
Ending balance	$	36		$	41

XML

Share-Based Payments (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013	Apr. 08, 2012	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based payment expense before income taxes	$ 13	$ 9	$ 30	$ 20
Income tax benefit	(5)	(4)	(11)	(8)
Net share-based payment expense	8	5	19	12
Common stock available for future stock option grants (in shares)	8.4		8.4		8.4
Unrecognized share-based payment expense, net of estimated forfeitures	110		110		135
Unvested outstanding stock options (in shares)	7.2		7.2		7.1
Weighted average period for recognition of unrecognized share-based payment expense (in years)			3 years
Cost of goods sold and occupancy costs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based payment expense before income taxes	0	0	1	1
Direct store expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based payment expense before income taxes	8	5	17	11
General and administrative expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based payment expense before income taxes	$ 5	$ 4	$ 12	$ 8

XML

Reserves for Closed Properties (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Apr. 14, 2013	Sep. 30, 2012
Restructuring Reserve [Roll Forward]
Beginning balance	$ 41	$ 45
Additions	2	4
Usage	(7)	(10)
Adjustments	0	2
Ending Balance	36	41
Usage in store closure reserve - ongoing cash rental payments		$ 10

XML

Basis of Presentation

6 Months Ended

Apr. 14, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Basis of Presentation

The accompanying unaudited consolidated financial statements of Whole Foods Market, Inc. and its consolidated subsidiaries (collectively “Whole Foods Market,” “Company,” or “we”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation. Where appropriate, we have reclassified prior years’ financial statements to conform to current year presentation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal year 2013 is a 52-week year and fiscal year 2012 was a 53-week year. The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets. The following is a summary of percentage sales by geographic area for the periods indicated:

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Sales:
United States	96.7	%	96.8	%	96.6	%	96.8	%
Canada and United Kingdom	3.3		3.2		3.4		3.2
Total sales	100.0	%	100.0	%	100.0	%	100.0	%

The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated:

	April 14, 2013		September 30, 2012
Long-lived assets, net:
United States	95.5	%	95.2	%
Canada and United Kingdom	4.5		4.8
Total long-lived assets, net	100.0	%	100.0	%

XML

Share-Based Payments (Details 2) (Restricted Stock [Member], USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended	6 Months Ended
	Apr. 14, 2013	Apr. 14, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	36,000	41,400
Stock Issued During Period, Value, Restricted Stock Award, Gross	$ 3	$ 4
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options	$ 4	$ 4
Minimum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Maximum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		7 years

XML

Basis of Presentation (Details)	6 Months Ended	12 Months Ended
	Apr. 14, 2013 Segment	Sep. 30, 2012
Organization Consolidation and Presentation [Line Items]
Number of Operating Segments	1
Number of Reportable Segments	1
Number of weeks in fiscal year	P52W	P53W
Number of weeks in first quarter	P16W
Number of weeks in second quarter	P12W
Number of weeks in third quarter	P12W
Minimum [Member]
Organization Consolidation and Presentation [Line Items]
Number of weeks in fiscal year	P52W
Number of weeks in fourth quarter	P12W
Maximum [Member]
Organization Consolidation and Presentation [Line Items]
Number of weeks in fiscal year	P53W
Number of weeks in fourth quarter	P13W

XML

Share-Based Payments (Tables)

6 Months Ended

Apr. 14, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

Share-based payment expense was included in the following line items on the Consolidated Statements of Operations for the periods indicated (in millions):

	Twelve weeks ended						Twenty-eight weeks ended
	April 14, 2013			April 8, 2012			April 14, 2013			April 8, 2012
Cost of goods sold and occupancy costs	$	—		$	—		$	1		$	1
Direct store expenses	8			5			17			11
General and administrative expenses	5			4			12			8
Share-based payment expense before income taxes	13			9			30			20
Income tax benefit	(5		)	(4		)	(11		)	(8		)
Net share-based payment expense	$	8		$	5		$	19		$	12

XML

Related Party Transactions Related Party Transactions (Details)	6 Months Ended
	Apr. 14, 2013 Foundation
Related Party Transactions [Abstract]
Number of non-profit organizations	2

XML

Basis of Presentation (Details 2)	3 Months Ended		6 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013	Apr. 08, 2012
Percentage sales by geographic area
Percentage of Total Sales	100.00%	100.00%	100.00%	100.00%
United States [Member]
Percentage sales by geographic area
Percentage of Total Sales	96.70%	96.80%	96.60%	96.80%
Canada and United Kingdom [Member]
Percentage sales by geographic area
Percentage of Total Sales	3.30%	3.20%	3.40%	3.20%

XML

Basis of Presentation (Details 3)	Apr. 14, 2013	Sep. 30, 2012
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	100.00%	100.00%
United States [Member]
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	95.50%	95.20%
Canada and United Kingdom [Member]
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	4.50%	4.80%

XML

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 14, 2013	Apr. 08, 2012
Cash flows from operating activities
Net income	$ 288	$ 236
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	179	162
Share-based payment expense	30	20
LIFO expense	2	1
Deferred income tax (benefit) expense	(2)	6
Excess tax benefit related to exercise of team member stock options	(8)	(15)
Accretion of premium/discount on marketable securities	16	5
Deferred lease liabilities	22	37
Other	6	1
Net change in current assets and liabilities:
Accounts receivable	6	(19)
Merchandise inventories	(9)	(29)
Prepaid expenses and other current assets	8	14
Accounts payable	(17)	6
Accrued payroll, bonus and other benefits due team members	27	19
Other current liabilities	45	71
Net change in other long-term liabilities	(3)	2
Net cash provided by operating activities	590	517
Cash flows from investing activities
Development costs of new locations	(157)	(115)
Other property and equipment expenditures	(107)	(99)
Purchases of available-for-sale securities	(528)	(1,321)
Sales and maturities of available-for-sale securities	825	789
Increase in restricted cash	(7)	(13)
Payment for purchase of acquired entity	(22)
Other investing activities	(7)	(1)
Net cash used in investing activities	(3)	(760)
Cash flows from financing activities
Common stock dividends paid	(434)	(43)
Issuance of common stock	16	237
Purchase of treasury stock	(63)	(4)
Excess tax benefit related to exercise of team member stock options	8	15
Net cash (used in) provided by financing activities	(473)	205
Effect of exchange rate changes on cash and cash equivalents	(1)	1
Net change in cash and cash equivalents	113	(37)
Cash and cash equivalents at beginning of period	89	212
Cash and cash equivalents at end of period	202	175
Supplemental disclosure of cash flow information:
Federal and state income taxes paid	$ 178	$ 91

XML

Fair Value Measurements (Details) (Fair value, Measurements, Recurring [Member], USD $) In Millions, unless otherwise specified	Apr. 14, 2013	Sep. 30, 2012
Level 1 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Total	$ 21	$ 16
Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Total	1,057	1,360
Total [Member]
Assets, Fair Value Disclosure [Abstract]
Total	1,078	1,376
Money Market Funds [Member] | Level 1 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents	21	16
Money Market Funds [Member] | Total [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents	21	16
Municipal Notes Bonds [Member] | Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents	19	8
Marketable securities - available-for-sale	973	983
Municipal Notes Bonds [Member] | Total [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents	19	8
Marketable securities - available-for-sale	973	983
Commercial Paper [Member] | Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable securities - available-for-sale		10
Commercial Paper [Member] | Total [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable securities - available-for-sale		10
Corporate Debt Securities [Member] | Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable securities - available-for-sale		11
Corporate Debt Securities [Member] | Total [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable securities - available-for-sale		11
Variable Rate Demand Obligation [Member] | Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable securities - available-for-sale	65	348
Variable Rate Demand Obligation [Member] | Total [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable securities - available-for-sale	$ 65	$ 348

XML

Earnings per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013	Apr. 08, 2012	Sep. 30, 2012
Earnings Per Share Reconciliation [Abstract]
Net Income (numerator for basic and diluted earnings per share)	$ 142	$ 118	$ 288	$ 236	$ 466
Weighted average common shares outstanding (denominator for basic earnings per share)	185.3	182.2	185.3	180.6
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	186.9	184.6	187.0	182.8
Basic earnings per share (in dollars per share)	$ 0.77	$ 0.65	$ 1.55	$ 1.31
Diluted earnings per share (in dollars per share)	$ 0.76	$ 0.64	$ 1.54	$ 1.29
Stock Options [Member]
Potential common shares outstanding [Abstract]
Incremental common shares attributable to share-based payment arrangements	1.6	2.4	1.7	2.2

XML

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Apr. 14, 2013	Sep. 30, 2012
Current assets:
Cash and cash equivalents	$ 202	$ 89
Short-term investments - available-for-sale securities	876	1,131
Restricted cash	110	103
Accounts receivable	193	197
Merchandise inventories	380	374
Prepaid expenses and other current assets	67	77
Deferred income taxes	135	132
Total current assets	1,963	2,103
Property and equipment, net of accumulated depreciation and amortization	2,253	2,193
Long-term investments - available-for-sale securities	162	221
Goodwill	679	663
Intangible assets, net of accumulated amortization	66	62
Deferred income taxes	42	43
Other assets	16	9
Total assets	5,181	5,294
Current liabilities:
Current installments of capital lease obligations	1	1
Accounts payable	230	247
Accrued payroll, bonus and other benefits due team members	334	307
Dividends payable	37	26
Other current liabilities	407	396
Total current liabilities	1,009	977
Long-term capital lease obligations, less current installments	26	23
Deferred lease liabilities	467	441
Other long-term liabilities	47	51
Total liabilities	1,549	1,492
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value, 600.0 shares authorized; 186.3 and 185.8 shares issued; 185.2 and 185.4 shares outstanding at 2013 and 2012, respectively	2,646	2,592
Common stock in treasury, at cost, 1.1 and 0.4 shares at 2013 and 2012, respectively	(91)	(28)
Accumulated other comprehensive income	0	5
Retained earnings	1,077	1,233
Total shareholders' equity	3,632	3,802
Total liabilities and shareholders' equity	$ 5,181	$ 5,294

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Consolidated Statements of Shareholders' Equity (USD $) In Millions, unless otherwise specified	Total	Common stock	Common stock in treasury	Accumulated other comprehensive income	Retained earnings
Balances at Sep. 25, 2011	$ 2,991	$ 2,121			$ 870
Balances (in shares) at Sep. 25, 2011		178.9
Increase (Decrease) in Shareholders' Equity
Net income	466				466
Other comprehensive income (loss), net of tax	5			5
Dividends ($2.40 and $0.56 per common share for the twenty-eight weeks ended April 14, 2013 and fiscal year ended September 30, 2012, respectively)	(103)				(103)
Issuance of common stock pursuant to team member stock plans	366	366
Issuance of common stock pursuant to team member stock plans (in shares)		6.9
Purchase of treasury stock	(28)		(28)
Purchase of treasury stock (in shares)		(0.4)
Excess tax benefit related to exercise of team member stock options	63	63
Share-based payment expense	42	42
Balances at Sep. 30, 2012	3,802	2,592	(28)	5	1,233
Balances (in shares) at Sep. 30, 2012	185.4	185.4
Increase (Decrease) in Shareholders' Equity
Net income	288				288
Other comprehensive income (loss), net of tax	(5)			(5)
Dividends ($2.40 and $0.56 per common share for the twenty-eight weeks ended April 14, 2013 and fiscal year ended September 30, 2012, respectively)	(444)				(444)
Issuance of common stock pursuant to team member stock plans	16	16
Issuance of common stock pursuant to team member stock plans (in shares)		0.5
Purchase of treasury stock	(63)		(63)
Purchase of treasury stock (in shares)	(0.7)	(0.7)
Excess tax benefit related to exercise of team member stock options	8	8
Share-based payment expense	30	30
Balances at Apr. 14, 2013	$ 3,632	$ 2,646	$ (91)	$ 0	$ 1,077
Balances (in shares) at Apr. 14, 2013	185.2	185.2

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Goodwill and Other Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013 Store	Apr. 08, 2012	Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Acquired During Period			$ 16
Number of Stores Acquired			6
Finite-lived Intangible Assets Acquired			6
Amortization of Intangible Assets	1	1	2	3
Finite and Indefinite-Lived Intangible Assets
Gross carrying amount	105		105		99
Accumulated amortization	(39)		(39)		(37)
Definite-lived contract-based [Member]
Finite and Indefinite-Lived Intangible Assets
Gross carrying amount	102		102		95
Accumulated amortization	(38)		(38)		(35)
Definite-lived marketing-related and other [Member]
Finite and Indefinite-Lived Intangible Assets
Gross carrying amount	1		1		2
Accumulated amortization	(1)		(1)		(2)
Indefinite-lived contract-based [Member]
Finite and Indefinite-Lived Intangible Assets
Gross carrying amount	$ 2		$ 2		$ 2

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Fair Value Measurements (Tables)

6 Months Ended

Apr. 14, 2013

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The Company held the following financial assets at fair value, based on the hierarchy input levels indicated, on a recurring basis (in millions):

April 14, 2013	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	21	$	—	$	—	$	21
Municipal bonds	—		19		—		19
Marketable securities - available-for-sale:
Municipal bonds	—		973		—		973
Variable-rate demand notes	—		65		—		65
Total	$	21	$	1,057	$	—	$	1,078

September 30, 2012	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	16	$	—	$	—	$	16
Municipal bonds	—		8		—		8
Marketable securities - available-for-sale:
Commercial paper	—		10		—		10
Corporate bonds	—		11		—		11
Municipal bonds	—		983		—		983
Variable-rate demand notes	—		348		—		348
Total	$	16	$	1,360	$	—	$	1,376

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Goodwill and Other Intangible Assets (Details 2) (USD $) In Millions, unless otherwise specified	Apr. 14, 2013
Future Amortization Expense [Line Items]
Amortization associated with the net carrying amount of intangible assets, remainder of fiscal year	$ 2
Amortization associated with the net carrying amount of intangible assets, year two	5
Amortization associated with the net carrying amount of intangible assets, year three	5
Amortization associated with the net carrying amount of intangible assets, year four	4
Amortization associated with the net carrying amount of intangible assets, year five	4
Amortization associated with the net carrying amount of intangible assets, after year five	44
Definite-lived intangible assets, net	$ 64

XML

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Apr. 14, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived And Indefinite-Lived Intangible Assets by Major Class [Table Text Block]

The components of intangible assets were as follows (in millions):

	April 14, 2013					September 30, 2012
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Definite-lived contract-based	$	102	$	(38	)	$	95	$	(35	)
Definite-lived marketing-related and other	1		(1		)	2		(2		)
Indefinite-lived contract-based	2					2
	$	105	$	(39	)	$	99	$	(37	)

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Future amortization associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions):

Remainder of fiscal year 2013	$	2
Fiscal year 2014	5
Fiscal year 2015	5
Fiscal year 2016	4
Fiscal year 2017	4
Future fiscal years	44
Total estimated future amortization associated with definite-lived intangible assets	$	64

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Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013	Apr. 08, 2012	Sep. 30, 2012
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.20	$ 0.14	$ 2.40	$ 0.28	$ 0.56

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, unless otherwise specified	Apr. 14, 2013	Sep. 30, 2012
Statement of Financial Position [Abstract]
Common Stock, Shares Authorized	600.0	600.0
Common Stock, Shares, Issued	186.3	185.8
Common Stock, Shares, Outstanding	185.2	185.4
Common Stock, No Par Value
Treasury Stock, Number of Shares Held	1.1	0.4

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Share-Based Payments

6 Months Ended

Apr. 14, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Share-Based Payments

Total share-based payment expense before income taxes recognized during the twelve and twenty-eight weeks ended April 14, 2013 totaled approximately $13 million and $30 million, respectively, and approximately $9 million and $20 million, respectively, for the same periods of the prior fiscal year. Share-based payment expense was included in the following line items on the Consolidated Statements of Operations for the periods indicated (in millions):

	Twelve weeks ended						Twenty-eight weeks ended
	April 14, 2013			April 8, 2012			April 14, 2013			April 8, 2012
Cost of goods sold and occupancy costs	$	—		$	—		$	1		$	1
Direct store expenses	8			5			17			11
General and administrative expenses	5			4			12			8
Share-based payment expense before income taxes	13			9			30			20
Income tax benefit	(5		)	(4		)	(11		)	(8		)
Net share-based payment expense	$	8		$	5		$	19		$	12

Stock Options

At April 14, 2013 and September 30, 2012, approximately 8.4 million shares of the Company’s common stock were available for future stock incentive grants. At April 14, 2013 and September 30, 2012, there was approximately $110 million and $135 million of unrecognized share-based payment expense, respectively, related to unvested stock options, net of estimated forfeitures, related to approximately 7.2 million shares and 7.1 million shares, respectively. We anticipate this expense to be recognized over a weighted average period of approximately three years.

Restricted Stock

During the twelve and twenty-eight weeks ended April 14, 2013, the Company awarded 36,000 and 41,400 shares of restricted common stock, respectively, pursuant to the Whole Foods Market 2009 Stock Incentive Plan. Fair value of the restricted share issuances on grant date totaled approximately $3 million and $4 million for the twelve and twenty-eight weeks ended April 14, 2013, respectively. Restricted shares vest over four or seven year terms. Share-based payment expense related to restricted shares, included in the “General and administrative expenses” line item on the Consolidated Statements of Operations, was not material for the twelve and twenty-eight weeks ended April 14, 2013. At April 14, 2013, there was approximately $4 million of unrecognized share-based payment expense related to unvested restricted stock. The number of shares, grant date fair value, and share-based payment expense related to the issuance of restricted common stock during fiscal year 2012 were not material.

XML

Document and Entity	6 Months Ended
	Apr. 14, 2013	May 10, 2013
Entity Information [Line Items]
Entity Registrant Name	WHOLE FOODS MARKET INC
Entity Central Index Key	0000865436
Document Type	10-Q
Entity Filer Category	Large Accelerated Filer
Current Fiscal Year End Date	--09-29
Document Period End Date	Apr. 14, 2013
Document Fiscal Year Focus	2013
Entity Common Stock, Shares Outstanding		185,447,031
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Commitments and Contingencies

6 Months Ended

Apr. 14, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters in a manner that we believe best serves the interests of our stakeholders. Our primary contingencies are associated with insurance and self-insurance obligations and litigation matters. Estimation of our insurance and self-insurance liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing and estimating the outcomes of these matters involve substantial uncertainties.

The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. Insurance and legal settlement liabilities are included in the “Other current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities.

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Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013	Apr. 08, 2012
Income Statement [Abstract]
Sales	$ 3,027	$ 2,670	$ 6,883	$ 6,061
Cost of goods sold and occupancy costs	1,926	1,700	4,434	3,913
Gross profit	1,101	970	2,449	2,148
Direct store expenses	769	682	1,748	1,553
General and administrative expenses	91	86	207	190
Pre-opening expenses	10	11	24	21
Relocation, store closure and lease termination costs	3	1	7	4
Operating income	228	190	463	380
Investment and other income, net of interest expense	3	2	6	4
Income before income taxes	231	192	469	384
Provision for income taxes	89	74	181	148
Net income	$ 142	$ 118	$ 288	$ 236
Basic earnings per share (in dollars per share)	$ 0.77	$ 0.65	$ 1.55	$ 1.31
Weighted average shares outstanding (in shares)	185.3	182.2	185.3	180.6
Diluted earnings per share (in dollars per share)	$ 0.76	$ 0.64	$ 1.54	$ 1.29
Weighted average shares outstanding, diluted basis (in shares)	186.9	184.6	187.0	182.8
Dividends declared per common share (in dollars per share)	$ 0.20	$ 0.14	$ 2.40	$ 0.28

XML

Investments

6 Months Ended

Apr. 14, 2013

Investments [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Investments

The Company holds investments in marketable securities, generally commercial paper, corporate bonds, municipal bonds and variable-rate demand notes, 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):

	April 14, 2013		September 30, 2012
Short-term marketable securities - available-for-sale:
Commercial paper	$	—	$	10
Corporate bonds	—		5
Municipal bonds	811		768
Variable-rate demand notes	65		348
Total short-term marketable securities	$	876	$	1,131
Long-term marketable securities - available-for-sale:
Corporate bonds	$	—	$	6
Municipal bonds	162		215
Total long-term marketable securities	$	162	$	221

At April 14, 2013 and September 30, 2012, available-for-sale securities totaling approximately $425 million and $382 million, respectively, were in unrealized loss positions. Gross unrealized holding gains and losses were not material at April 14, 2013 and September 30, 2012. There were no investments in a continuous unrealized loss position for greater than 12 months at April 14, 2013 or September 30, 2012.

At April 14, 2013, the average effective maturity of the Company’s short- and long-term investments was approximately 4 months and 16 months, respectively, compared to approximately 5 months and 15 months, respectively, at September 30, 2012.

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Fair Value Measurements

6 Months Ended

Apr. 14, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities generally consisting of state and municipal obligations and variable-rate demand notes which hold high credit ratings. These instruments are valued using a series of multi-dimensional relational models and 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.

The Company held the following financial assets at fair value, based on the hierarchy input levels indicated, on a recurring basis (in millions):

April 14, 2013	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	21	$	—	$	—	$	21
Municipal bonds	—		19		—		19
Marketable securities - available-for-sale:
Municipal bonds	—		973		—		973
Variable-rate demand notes	—		65		—		65
Total	$	21	$	1,057	$	—	$	1,078

September 30, 2012	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	16	$	—	$	—	$	16
Municipal bonds	—		8		—		8
Marketable securities - available-for-sale:
Commercial paper	—		10		—		10
Corporate bonds	—		11		—		11
Municipal bonds	—		983		—		983
Variable-rate demand notes	—		348		—		348
Total	$	16	$	1,360	$	—	$	1,376

XML

Investments (Tables)

6 Months Ended

Apr. 14, 2013

Investments [Abstract]

Marketable Securities [Table Text Block]

The Company held the following investments at fair value as of the dates indicated (in millions):

	April 14, 2013		September 30, 2012
Short-term marketable securities - available-for-sale:
Commercial paper	$	—	$	10
Corporate bonds	—		5
Municipal bonds	811		768
Variable-rate demand notes	65		348
Total short-term marketable securities	$	876	$	1,131
Long-term marketable securities - available-for-sale:
Corporate bonds	$	—	$	6
Municipal bonds	162		215
Total long-term marketable securities	$	162	$	221

XML

Related Party Transactions

6 Months Ended

Apr. 14, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Related Party Transactions

The Company provides ongoing support to two independent non-profit organizations: Whole Planet Foundation and Whole Kids Foundation (the “Foundations”). Whole Planet Foundation’s mission is to empower the poor through microcredit, with a focus on developing-world communities that supply the Company’s stores with product. Whole Kids Foundation is a non-profit organization dedicated to improving children’s nutrition through partnerships with schools, educators, and other organizations. Members of the Company’s management comprise the Board of Directors of each of the Foundations. Additionally, the Company provides administrative support and covers all operating costs of the Foundations.

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Shareholders' Equity

6 Months Ended

Apr. 14, 2013

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Shareholders’ Equity

Dividends per Common Share

Following is a summary of dividends declared per common share during fiscal years 2013 and 2012 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2013:
November 29, 2012	$	2.00	December 10, 2012	December 21, 2012	$	371
November 7, 2012	0.20		January 18, 2013	January 29, 2013	37
March 15, 2013 (1)	0.20		April 12, 2013	April 23, 2013	37
Fiscal year 2012:
November 2, 2011	$	0.14	January 13, 2012	January 24, 2012	$	25
March 9, 2012	0.14		April 5, 2012	April 17, 2012	26
May 30, 2012	0.14		June 29, 2012	July 10, 2012	26
September 6, 2012	0.14		September 28, 2012	October 9, 2012	26

⁽¹⁾ Dividend accrued at April 14, 2013

Treasury Stock

During the first quarter of fiscal year 2012, the Company’s Board of Directors authorized a share repurchase program in the amount of $200 million through November 1, 2013. During the first quarter of fiscal year 2013, the Company’s Board of Directors authorized a new share repurchase program whereby the Company may repurchase an amount of outstanding shares of common stock of the Company up to an aggregate amount of $300 million through December 31, 2014. This repurchase program is in addition to, and does not supersede or modify, the Company’s previously authorized program.

Share repurchase activity for the periods indicated was as follows (in millions, except per share amounts):

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Number of common shares acquired	0.5		—		0.7		0.1
Average price per common share acquired	$	86.92	$	—	$	88.96	$	63.70
Total cost of common shares acquired	$	37	$	—	$	63	$	4

The Company currently has approximately $409 million in share repurchase authority. Under the repurchase programs, purchases can be made from time to time using a variety of methods, which may include open market purchases or purchases through a Rule 10b5-1 trading plan, all in accordance with the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic conditions and market conditions, and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s discretion.

Subsequent Event

Subsequent to the end of the second quarter of fiscal year 2013, the Company announced that its Board of Directors approved a two-for-one stock split of the Company’s outstanding common stock to be effected through a stock dividend. Shareholders of record as of the close of business on May 17, 2013 will be entitled to a stock dividend on May 29, 2013 of one additional share of common stock for each share of common stock they own. Based on the total number of shares of common stock outstanding as of April 14, 2013, the stock split will increase the total number of shares of common stock outstanding from approximately 185.2 million shares to 370.4 million shares, out of the 600.0 million shares of common stock currently authorized. No adjustments have been made to share or per share amounts in the accompanying financial statements and applicable disclosures for the effects of this future stock split.

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Goodwill and Other Intangible Assets

6 Months Ended

Apr. 14, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets

The Company recorded goodwill totaling approximately $16 million related to the acquisition of six retail locations during the twenty-eight weeks ended April 14, 2013. No additions or adjustments to goodwill were recorded during fiscal year 2012. The Company acquired approximately $6 million in definite-lived intangible assets, primarily favorable lease assets related to the acquisition of six retail locations, during the twenty-eight weeks ended April 14, 2013. Acquisitions of definite-lived intangible assets were not material during fiscal year 2012. The components of intangible assets were as follows (in millions):

	April 14, 2013					September 30, 2012
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Definite-lived contract-based	$	102	$	(38	)	$	95	$	(35	)
Definite-lived marketing-related and other	1		(1		)	2		(2		)
Indefinite-lived contract-based	2					2
	$	105	$	(39	)	$	99	$	(37	)

Amortization associated with intangible assets totaled approximately $1 million and $2 million for the twelve and twenty-eight weeks ended April 14, 2013, respectively, and approximately $1 million and $3 million, respectively, for the same periods of the prior fiscal year. Future amortization associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions):

Remainder of fiscal year 2013	$	2
Fiscal year 2014	5
Fiscal year 2015	5
Fiscal year 2016	4
Fiscal year 2017	4
Future fiscal years	44
Total estimated future amortization associated with definite-lived intangible assets	$	64

XML

Reserves for Closed Properties

6 Months Ended

Apr. 14, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Reserves for Closed Properties

Following is a summary of store closure reserve activity during the twenty-eight weeks ended April 14, 2013 and fiscal year ended September 30, 2012 (in millions):

	April 14, 2013			September 30, 2012
Beginning balance	$	41		$	45
Additions	2			4
Usage	(7		)	(10		)
Adjustments	—			2
Ending balance	$	36		$	41

Additions to store closure reserves primarily relate to the accretion of interest on existing reserves. Usage included approximately $7 million primarily related to ongoing cash rental payments during the twenty-eight weeks ended April 14, 2013. During the fiscal year ended September 30, 2012, usage included approximately $10 million in ongoing cash rental payments.

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Earnings per Share

6 Months Ended

Apr. 14, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings per Share

The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period, excluding unvested restricted stock. 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 unvested restricted stock awards.

A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts):

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Net income (numerator for basic and diluted earnings per share)	$	142	$	118	$	288	$	236
Weighted average common shares outstanding (denominator for basic earnings per share)	185.3		182.2		185.3		180.6
Potential common shares outstanding:
Incremental shares from assumed exercise of stock options	1.6		2.4		1.7		2.2
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	186.9		184.6		187.0		182.8
Basic earnings per share	$	0.77	$	0.65	$	1.55	$	1.31
Diluted earnings per share	$	0.76	$	0.64	$	1.54	$	1.29

The computation of diluted earnings per share for the twelve and twenty-eight weeks ended April 14, 2013 does not include options to purchase approximately 3.6 million shares of common stock due to their antidilutive effect. For the twelve and twenty-eight weeks ended April 8, 2012, the number of stock options excluded from the calculation of diluted earnings per share due to their antidilutive effect was not material. The dilutive effect of unvested restricted stock awards was not material for the twelve and twenty-eight weeks ended April 14, 2013 or the same periods of the prior fiscal year.

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Investments (Details 2) (USD $) In Millions, unless otherwise specified	Apr. 14, 2013	Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	$ 876	$ 1,131
Available-for-sale Securities, Noncurrent	162	221
Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current		10
Corporate Note Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current		5
Municipal Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	811	768
Variable Rate Demand Obligation [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	65	348
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Noncurrent		6
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Noncurrent	$ 162	$ 215

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Basis of Presentation (Tables)

6 Months Ended

Apr. 14, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Entity Wide Information Geographic Area Revenue [Table Text Block]

The following is a summary of percentage sales by geographic area for the periods indicated:

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Sales:
United States	96.7	%	96.8	%	96.6	%	96.8	%
Canada and United Kingdom	3.3		3.2		3.4		3.2
Total sales	100.0	%	100.0	%	100.0	%	100.0	%

Schedule of Entity Wide Information Geographic Area Long-Lived Assets [Table Text Block]

The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated:

	April 14, 2013		September 30, 2012
Long-lived assets, net:
United States	95.5	%	95.2	%
Canada and United Kingdom	4.5		4.8
Total long-lived assets, net	100.0	%	100.0	%

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Shareholders' Equity (Tables)

6 Months Ended

Apr. 14, 2013

Equity [Abstract]

Schedule of Dividends Declared [Table Text Block]

Following is a summary of dividends declared per common share during fiscal years 2013 and 2012 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2013:
November 29, 2012	$	2.00	December 10, 2012	December 21, 2012	$	371
November 7, 2012	0.20		January 18, 2013	January 29, 2013	37
March 15, 2013 (1)	0.20		April 12, 2013	April 23, 2013	37
Fiscal year 2012:
November 2, 2011	$	0.14	January 13, 2012	January 24, 2012	$	25
March 9, 2012	0.14		April 5, 2012	April 17, 2012	26
May 30, 2012	0.14		June 29, 2012	July 10, 2012	26
September 6, 2012	0.14		September 28, 2012	October 9, 2012	26

⁽¹⁾ Dividend accrued at April 14, 2013

Schedule of Shares Repurchased [Table Text Block]

Share repurchase activity for the periods indicated was as follows (in millions, except per share amounts):

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Number of common shares acquired	0.5		—		0.7		0.1
Average price per common share acquired	$	86.92	$	—	$	88.96	$	63.70
Total cost of common shares acquired	$	37	$	—	$	63	$	4

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Earnings per Share (Details 2) (Stock Options [Member]) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Apr. 14, 2013	Apr. 14, 2013
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3.6	3.6

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013	Apr. 08, 2012
Net income	$ 142	$ 118	$ 288	$ 236
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(3)	2	(5)	3
Other comprehensive income (loss), net of tax	(3)	2	(5)	3
Comprehensive income	$ 139	$ 120	$ 283	$ 239

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Recent Accounting Pronouncements

6 Months Ended

Apr. 14, 2013

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Description of New Accounting Pronouncements Recently Adopted [Text Block]

Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force),” which amends Accounting Standards Codification (“ASC”) 405, “Liabilities.” The amendments provide guidance on the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings, for which the total amount of the obligation is fixed at the reporting date. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied retrospectively. The provisions are effective for the Company’s first quarter of fiscal year ending September 27, 2015. We do not expect the adoption of these provisions to have a significant impact the Company’s consolidated financial statements.

Effective October 1, 2012, the Company concurrently adopted ASU No. 2011-05, “Presentation of Comprehensive Income,” and ASU No. 2013-02, “Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income,” both of which amend ASC 220, “Comprehensive Income.” In adopting ASU No. 2011-05, which requires that all nonowner changes in stockholders’ equity be presented in either a single statement of comprehensive income or two separate but consecutive statements, the Company added Consolidated Statements of Comprehensive Income following our Consolidated Statements of Operations. The amended guidance in ASU No. 2013-02 requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income. The adoption of ASU No. 2013-02 did not have a significant impact on the Company’s consolidated financial statements.

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Earnings per Share (Tables)

6 Months Ended

Apr. 14, 2013

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]

A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts):

	Twelve weeks ended				Twenty-eight weeks ended
	April 14, 2013		April 8, 2012		April 14, 2013		April 8, 2012
Net income (numerator for basic and diluted earnings per share)	$	142	$	118	$	288	$	236
Weighted average common shares outstanding (denominator for basic earnings per share)	185.3		182.2		185.3		180.6
Potential common shares outstanding:
Incremental shares from assumed exercise of stock options	1.6		2.4		1.7		2.2
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	186.9		184.6		187.0		182.8
Basic earnings per share	$	0.77	$	0.65	$	1.55	$	1.31
Diluted earnings per share	$	0.76	$	0.64	$	1.54	$	1.29

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Shareholders' Equity (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended	3 Months Ended				4 Months Ended
	Apr. 14, 2013	Apr. 08, 2012	Apr. 14, 2013	Apr. 08, 2012	Sep. 30, 2012	Apr. 14, 2013 Dividend Declared [Member]	Sep. 30, 2012 Dividend Declared [Member]	Jul. 01, 2012 Dividend Declared [Member]	Apr. 08, 2012 Dividend Declared [Member]	Jan. 20, 2013 Dividend Declared [Member]	Jan. 15, 2012 Dividend Declared [Member]	Jan. 20, 2013 Special Dividend [Member]
Dividends Per Common Share [Abstract]
Dividends Payable, Date Declared						Mar. 15, 2013	Sep. 06, 2012	May 30, 2012	Mar. 09, 2012	Nov. 07, 2012	Nov. 02, 2011	Nov. 29, 2012
Dividends declared per common share (in dollars per share)	$ 0.20	$ 0.14	$ 2.40	$ 0.28	$ 0.56	$ 0.20	$ 0.14	$ 0.14	$ 0.14	$ 0.20	$ 0.14	$ 2.00
Dividends Payable, Date of Record, Day, Month and Year						Apr. 12, 2013	Sep. 28, 2012	Jun. 29, 2012	Apr. 05, 2012	Jan. 18, 2013	Jan. 13, 2012	Dec. 10, 2012
Dividends Payable, Date to be Paid, Day, Month and Year						Apr. 23, 2013	Oct. 09, 2012	Jul. 10, 2012	Apr. 17, 2012	Jan. 29, 2013	Jan. 24, 2012	Dec. 21, 2012
Dividends, Common Stock, Cash			$ 444		$ 103	$ 37	$ 26	$ 26	$ 26	$ 37	$ 25	$ 371

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Apr. 14, 2013

Accounting Policies [Abstract]

Fiscal Period, Policy [Policy Text Block]

The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal year 2013 is a 52-week year and fiscal year 2012 was a 53-week year.

Earnings Per Share, Policy [Policy Text Block]

The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period, excluding unvested restricted stock. 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 unvested restricted stock awards.

Fair Value of Financial Instruments, Policy [Policy Text Block]

The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities generally consisting of state and municipal obligations and variable-rate demand notes which hold high credit ratings. These instruments are valued using a series of multi-dimensional relational models and 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.