Document

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 July 3, 2016; 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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” 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 July 29, 2016 was 318,804,485 shares.

Whole Foods Market, Inc.

Form 10-Q

Table of Contents



	Page

Part I. Financial Information

Item 1. Financial Statements.
Consolidated Balance Sheets (unaudited), July 3, 2016 and September 27, 2015	1

Consolidated Statements of Operations (unaudited), for the twelve and forty weeks ended July 3, 2016 and July 5, 2015	2

Consolidated Statements of Comprehensive Income (unaudited), for the twelve and forty weeks ended July 3, 2016 and July 5, 2015	3

Consolidated Statements of Shareholders’ Equity (unaudited), for the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015	4

Consolidated Statements of Cash Flows (unaudited), for the forty weeks ended July 3, 2016 and July 5, 2015	5

Notes to Consolidated Financial Statements (unaudited)	6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	15

Item 3. Quantitative and Qualitative Disclosures About Market Risk.	23

Item 4. Controls and Procedures.	24

Part II. Other Information

Item 1. Legal Proceedings.	25

Item 1A. Risk Factors.	25

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	25

Item 6. Exhibits.	26

Signature	27

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Part I. Financial Information

Item 1. Financial Statements.

Whole Foods Market, Inc.

Consolidated Balance Sheets (unaudited)

(In millions)



Assets	July 3, 2016			September 27, 2015
Current assets:
Cash and cash equivalents	$	472		$	237
Short-term investments - available-for-sale securities	153			155
Restricted cash	123			127
Accounts receivable	319			218
Merchandise inventories	523			500
Prepaid expenses and other current assets	147			108
Deferred income taxes	188			199
Total current assets	1,925			1,544
Property and equipment, net of accumulated depreciation and amortization	3,376			3,163
Long-term investments - available-for-sale securities	—			63
Goodwill	710			710
Intangible assets, net of accumulated amortization	76			79
Deferred income taxes	143			144
Other assets	45			38
Total assets	$	6,275		$	5,741

Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	3		$	3
Accounts payable	292			295
Accrued payroll, bonus and other benefits due team members	409			436
Dividends payable	43			45
Other current liabilities	577			473
Total current liabilities	1,324			1,252
Long-term debt and capital lease obligations, less current installments	1,049			62
Deferred lease liabilities	626			587
Other long-term liabilities	91			71
Total liabilities	3,090			1,972

Commitments and contingencies

Shareholders’ equity:
Common stock, no par value, 1,200 shares authorized; 377.0 and 377.1 shares issued; 318.8 and 348.9 shares outstanding at 2016 and 2015, respectively	2,924			2,904
Common stock in treasury, at cost, 58.2 and 28.2 shares at 2016 and 2015, respectively	(2,014		)	(1,124		)
Accumulated other comprehensive loss	(29		)	(28		)
Retained earnings	2,304			2,017
Total shareholders’ equity	3,185			3,769
Total liabilities and shareholders’ equity	$	6,275		$	5,741

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					Forty weeks ended
	July 3, 2016			July 5, 2015		July 3, 2016			July 5, 2015
Sales	$	3,703		$	3,632	$	12,227		$	11,951
Cost of goods sold and occupancy costs	2,417			2,339		8,010			7,721
Gross profit	1,286			1,293		4,217			4,230
Selling, general and administrative expenses	1,057			1,032		3,458			3,392
Pre-opening expenses	18			12		49			53
Relocation, store closure and lease termination costs	2			2		8			12
Operating income	209			247		702			773
Interest expense	(12		)	—		(30		)	—
Investment and other income (expense)	(1		)	5		8			12
Income before income taxes	196			252		680			785
Provision for income taxes	76			98		261			306
Net income	$	120		$	154	$	419		$	479

Basic earnings per share	$	0.37		$	0.43	$	1.27		$	1.33
Weighted average shares outstanding	320.6			358.5		328.4			359.6

Diluted earnings per share	$	0.37		$	0.43	$	1.27		$	1.32
Weighted average shares outstanding, diluted basis	321.2			360.5		329.3			362.2

Dividends declared per common share	$	0.135		$	0.130	$	0.405		$	0.390

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

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Whole Foods Market, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)



	Twelve weeks ended					Forty weeks ended
	July 3, 2016			July 5, 2015		July 3, 2016			July 5, 2015
Net income	$	120		$	154	$	419		$	479
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1		)	3		(1		)	(15		)
Other comprehensive income (loss), net of tax	(1		)	3		(1		)	(15		)
Comprehensive income	$	119		$	157	$	418		$	464

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

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Whole Foods Market, Inc.

Consolidated Statements of Shareholders’ Equity (unaudited)

Forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015

(In millions)



	Shares outstanding		Common stock			Common stock in treasury			Accumulated other comprehensive loss			Retained earnings			Total shareholders’ equity
Balances at September 28, 2014	360.4		$	2,863		$	(711	)	$	(7	)	$	1,668		$	3,813
Net income	—		—			—			—			536			536
Other comprehensive loss, net of tax	—		—			—			(21		)	—			(21		)
Dividends ($0.52 per common share)	—		—			—			—			(186		)	(186		)
Issuance of common stock pursuant to team member stock plans	2.3		(34		)	100			—			—			66
Purchase of treasury stock	(13.8	)	—			(513		)	—			—			(513		)
Tax benefit related to exercise of team member stock options	—		11			—			—			—			11
Share-based payment expense	—		64			—			—			—			64
Other	—		—			—			—			(1		)	(1		)
Balances at September 27, 2015	348.9		2,904			(1,124		)	(28		)	2,017			3,769
Net income	—		—			—			—			419			419
Other comprehensive loss, net of tax	—		—			—			(1		)	—			(1		)
Dividends ($0.405 per common share)	—		—			—			—			(131		)	(131		)
Issuance of common stock pursuant to team member stock plans	1.1		(22		)	39			—			—			17
Purchase of treasury stock	(31.2	)	—			(929		)	—			—			(929		)
Tax benefit related to exercise of team member stock options	—		3			—			—			—			3
Share-based payment expense	—		39			—			—			—			39
Other	—		—			—			—			(1		)	(1		)
Balances at July 3, 2016	318.8		$	2,924		$	(2,014	)	$	(29	)	$	2,304		$	3,185

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

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Whole Foods Market, Inc.

Consolidated Statements of Cash Flows (unaudited)

(In millions)



	Forty weeks ended
	July 3, 2016			July 5, 2015
Cash flows from operating activities
Net income	$	419		$	479
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	376			331
Share-based payment expense	39			51
LIFO expense	1			3
Deferred income tax expense	16			47
Excess tax benefit related to exercise of team member stock options	(4		)	(10		)
Accretion of premium/discount on marketable securities	1			14
Deferred lease liabilities	31			24
Other	7			10
Net change in current assets and liabilities:
Accounts receivable	(100		)	(19		)
Merchandise inventories	(25		)	(47		)
Prepaid expenses and other current assets	(39		)	(4		)
Accounts payable	(2		)	16
Accrued payroll, bonus and other benefits due team members	(27		)	26
Other current liabilities	57			72
Net change in other long-term liabilities	14			4
Net cash provided by operating activities	764			997
Cash flows from investing activities
Development costs of new locations	(295		)	(411		)
Other property and equipment expenditures	(226		)	(268		)
Purchases of available-for-sale securities	(311		)	(458		)
Sales and maturities of available-for-sale securities	375			497
Decrease (increase) in restricted cash	3			(19		)
Payment for purchase of acquired entities, net of cash acquired	(11		)	(4		)
Other investing activities	(12		)	(8		)
Net cash used in investing activities	(477		)	(671		)
Cash flows from financing activities
Purchases of treasury stock	(929		)	(188		)
Common stock dividends paid	(133		)	(137		)
Issuance of common stock	17			61
Excess tax benefit related to exercise of team member stock options	4			10
Proceeds from long-term borrowings	999			—
Proceeds from revolving line of credit	300			—
Payments on long-term debt and capital lease obligations	(306		)	—
Other financing activities	(9		)	(1		)
Net cash used in financing activities	(57		)	(255		)
Effect of exchange rate changes on cash and cash equivalents	5			(4		)
Net change in cash and cash equivalents	235			67
Cash and cash equivalents at beginning of period	237			190
Cash and cash equivalents at end of period	$	472		$	257

Supplemental disclosure of cash flow information:
Federal and state income taxes paid	$	357		$	263
Interest paid	$	27		$	—

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

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Whole Foods Market, Inc.

Notes to Consolidated Financial Statements (unaudited)

July 3, 2016

(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 27, 2015. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation. Where appropriate, we have reclassified prior year financial statements to conform to current year presentation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal years 2016 and 2015 are 52-week years. The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets.

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



	Twelve weeks ended				Forty weeks ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Sales:
United States	96.9	%	96.9	%	97.1	%	96.9	%
Canada and United Kingdom	3.1		3.1		2.9		3.1
Total sales	100.0	%	100.0	%	100.0	%	100.0	%

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



	July 3, 2016		September 27, 2015
Long-lived assets, net:
United States	97.5	%	97.4	%
Canada and United Kingdom	2.5		2.6
Total long-lived assets, net	100.0	%	100.0	%

(2) Summary of Significant Accounting Policies

Recent Accounting Pronouncements

Effective September 28, 2015, the Company early adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” which amends the Accounting Standards Codification Subtopic 835-30. The amendments, which require that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, were adopted on a retrospective basis. The adoption of these amendments did not have a significant effect on the Company’s financial statements.

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The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted. Early adoption is permitted for all updates unless stated.



Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments(Topic 326)	The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic.	First quarter of fiscal year ending September 29, 2021	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (Topic 718)	The amendments aim to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, and certain classifications on the statement of cash flows. The amendments should be applied on either a prospective, retrospective, or modified-retrospective basis depending on the subtopic.	First quarter of fiscal year ending September 30, 2018	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606)	The amendments, which do not change the core principle of the guidance in Topic 606, clarify the implementation guidance on principal versus agent considerations, including how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-07 Simplifying the Transition to the Equity Method of Accounting (Topic 323)	The amendments eliminate the requirement to retroactively apply the equity method of accounting when an investment qualifies for the use of the equity method due to an increase in the level of ownership interest or degree of influence. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2016-04 Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force) (Subtopic 405-20)	The amendments require entities to recognize liabilities related to the sale of prepaid stored-value products redeemable for goods, services or cash as financial liabilities in the scope of ASC 405. Additionally, the new guidance amends ASC 405-20 to include a narrow scope exception requiring entities to recognize breakage for these liabilities in a way that is consistent with how gift card breakage will be recognized under the new revenue recognition standard. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.

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Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2016-02 Leases (Topic 842)	The amendments require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. Accounting guidance for lessors is largely unchanged. The amendments should be applied on a modified retrospective basis.	First quarter of fiscal year ending September 27, 2020	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)	The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet in year of adoption. Early adoption is permitted for only certain amendments of the update.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2015-17 Balance Sheet Classification of Deferred Taxes (Topic 740)	The amendments simplify the presentation of deferred income taxes by requiring that all deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. The amendments may be applied on either a prospective or retrospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2015-16 Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)	The amendments require that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined and eliminate the requirement to retrospectively revise prior periods. Additionally, an acquirer should record in the same period the effects on earnings of any changes in the provisional accounts, calculated as if the accounting had been completed at the acquisition date. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 24, 2017	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2015-11 Simplifying the Measurement of Inventory (Topic 330)	The amendments, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2015-05 Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (Topic 350)	The amendments provide guidance as to whether a cloud computing arrangement (e.g., software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. The amendments may be applied on either a prospective or retrospective basis.	First quarter of fiscal year ending September 24, 2017	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.

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Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2015-02 Amendments to the Consolidation Analysis (Topic 810)	The amendments revise the consolidation analysis related to limited partnerships and similar legal entities, variable interest entities, and certain investment funds. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 24, 2017	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606)	The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the timing, method, and impact that the adoption of these provisions will have on the Company’s consolidated financial statements.

(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 that are valued using a series of multi-dimensional relational models and series of matrices with standard inputs obtained from readily available pricing sources and other observable market data, such as benchmark yields and base spread. Equity interests measured at fair value are based on quoted prices for similar assets in active markets.

The carrying amounts of accrued payroll, bonuses and other benefits due team members, and other accrued expenses approximate fair value because of their short maturities. Store closure reserves and estimated workers’ compensation claims are recorded at net present value to approximate fair value.

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



July 3, 2016	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	165	$	—	$	—	$	165
Commercial paper	—		46		—		46
Municipal bonds	—		18		—		18
Marketable securities - available-for-sale:
Municipal bonds	—		153		—		153
Other assets:
Equity interests	—		7		—		7
Total	$	165	$	224	$	—	$	389



September 27, 2015	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	32	$	—	$	—	$	32
Marketable securities - available-for-sale:
Asset-backed securities	—		13		—		13
Certificates of deposit	—		2		—		2
Corporate bonds	—		30		—		30
Municipal bonds	—		173		—		173
Total	$	32	$	218	$	—	$	250

The estimated fair value of the Company’s long-term debt is included in Note 8 “Long-Term Debt.”

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(4) Investments

The Company holds investments primarily in marketable securities that are classified as either short- or long-term available-for-sale securities. The Company held the following investments at fair value as of the dates indicated (in millions):



	July 3, 2016		September 27, 2015
Short-term marketable securities - available-for-sale:
Asset-backed securities	$	—	$	10
Certificates of deposit	—		2
Corporate bonds	—		15
Municipal bonds	153		128
Total short-term marketable securities	$	153	$	155
Long-term marketable securities - available-for-sale:
Asset-backed securities	$	—	$	3
Corporate bonds	—		15
Municipal bonds	—		45
Total long-term marketable securities	$	—	$	63

Gross unrealized holding gains and losses were not material at July 3, 2016 or September 27, 2015. There were no available-for-sale securities in unrealized loss position at July 3, 2016. Available-for-sale securities totaling approximately $58 million were in unrealized loss positions at September 27, 2015. The aggregate value of available-for-sale securities in a continuous unrealized loss position for greater than 12 months was not material at September 27, 2015. The Company did not recognize any other-than-temporary impairments during the forty weeks ended July 3, 2016 or fiscal year ended September 27, 2015. The average effective maturity of the Company’s short-term available-for-sale securities was less than one month at July 3, 2016 and approximately seven months at September 27, 2015. The average effective maturity of the Company’s long-term available-for-sale securities was approximately 16 months at September 27, 2015.

At July 3, 2016 and September 27, 2015, the Company held approximately $14 million in equity interests which were accounted for using the cost method of accounting. In addition, the Company held approximately $7 million in equity interests which are measured at fair value at July 3, 2016. Equity interests accounted for using the equity method were not material at July 3, 2016 or September 27, 2015.

(5) Goodwill and Other Intangible Assets

There were no additions or adjustments to goodwill during the forty weeks ended July 3, 2016. Additions and adjustments to goodwill were not material during the forty weeks ended July 5, 2015. Additions of other intangible assets were not material during the forty weeks ended July 3, 2016 or the same period of the prior fiscal year. The components of intangible assets as of the dates indicated were as follows (in millions):



	July 3, 2016					September 27, 2015
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Definite-lived contract-based	$	122	$	(54	)	$	122	$	(50	)
Indefinite-lived contract-based	8					7
Total	$	130	$	(54	)	$	129	$	(50	)

Amortization expense associated with intangible assets was not material during the twelve and forty weeks ended July 3, 2016 or the same periods of the prior fiscal year. Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions):



Remainder of fiscal year 2016	$	1
Fiscal year 2017	6
Fiscal year 2018	5
Fiscal year 2019	5
Fiscal year 2020	5
Future fiscal years	46
Total	$	68

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(6) One-Time Termination Benefits

During fiscal year 2015, the Company communicated to certain team members its plan of termination to reduce a number of positions through the first quarter of fiscal year 2016 as part of its ongoing commitment to lower prices for its customers and invest in technology upgrades while improving its cost structure. The Company recorded one-time termination benefits in the fourth quarter of fiscal year 2015 totaling $34 million, included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations. The plan was substantially completed during the first quarter of fiscal year 2016, and adjustments to the related restructuring charges were not material.

(7) Reserves for Closed Properties

The following table provides a summary of activity in reserves for closed properties during the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015 (in millions):



	July 3, 2016			September 27, 2015
Beginning balance	$	28		$	31
Additions	4			9
Usage	(8		)	(13		)
Adjustments	2			1
Ending balance	$	26		$	28

(8) Long-Term Debt

Credit Agreement

On November 2, 2015, the Company entered into a credit facility (the “Credit Agreement”) that provides for an unsecured revolving credit facility in the aggregate principal amount of $500 million, which may be increased from time to time by up to $250 million in the aggregate pursuant to an expansion feature set forth in the Credit Agreement. The Credit Agreement also provides for a letter of credit subfacility of up to $250 million and a swingline subfacility of up to $50 million. The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate, on November 2, 2020.

Under the Credit Agreement, Eurodollar borrowings bear interest at a variable rate equal to an adjusted London interbank offered rate (“Adjusted LIBO Rate”) for a one, two, three, or six month interest period, plus a margin between 1.125% to 1.750%. Other borrowings, including swingline loans, bear interest at a variable rate equal to the greatest of the Prime Rate, the Federal Funds Rate plus 0.5%, and the Adjusted LIBO Rate for a one-month interest period plus 1%, in each case plus a margin of 0.125% to 0.750%. For all borrowings, the applicable margin is based on the Company’s leverage ratio. Additionally, the Company will pay a commitment fee ranging from 0.125% to 0.300%, based on the Company’s leverage ratio, on the average daily amount of the undrawn commitments under the Credit Agreement payable quarterly.

The Credit Agreement includes customary representations and warranties, certain affirmative covenants including the maintenance of certain financial ratios, certain negative covenants including limitations on additional indebtedness and payments as defined in the agreement, and events of default. At July 3, 2016, we were in compliance with all applicable debt covenants. Subject to certain exceptions, obligations under the Credit Agreement are guaranteed by certain of the Company’s material domestic subsidiaries.

During the first quarter of fiscal year 2016, the Company borrowed and repaid $300 million under the Credit Agreement. At July 3, 2016, the Company had no amounts outstanding. Commitment fees paid on undrawn amounts were not material during the forty weeks ended July 3, 2016.

Senior Notes

On December 3, 2015, the Company completed the offering of $1.0 billion of 5.2% senior notes due 2025 (the “Notes”). The Notes were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws.

The Notes bear interest at a fixed rate equal to 5.2% per year, payable semiannually, and mature on December 3, 2025. The interest rate payable on the Notes is subject to adjustment upon the occurrence of certain credit rating events described in the indenture. The Notes are guaranteed on an unsecured, unsubordinated basis by certain subsidiaries of the Company.

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The Notes are subject to customary covenants restricting the Company’s and its subsidiaries’ ability, subject to certain exceptions, to incur debt secured by liens or to enter into sale and leaseback transactions and restricting the Company’s ability to merge or consolidate with another entity or sell substantially all of its assets to another person. Prior to September 3, 2025, the Company may redeem the Notes at the Company’s option at any time either in whole or in part for a redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed plus the applicable make-whole premium, plus accrued and unpaid interest thereon. On or after September 3, 2025, the Company may redeem the Notes at the Company’s option at any time either in whole or in part for a redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed, plus accrued and unpaid interest thereon.

The components of long-term debt as of the dates indicated were as follows (in millions):



	July 3, 2016			September 27, 2015
5.2% senior notes due 2025	$	1,000		$	—
Less: unamortized discount and debt issuance costs related to senior notes	(7		)	—
Carrying value of senior notes	993			—
Capital lease obligations	59			65
Total long-term debt and capital lease obligations	1,052			65
Less: current installments	(3		)	(3		)
Total long-term debt and capital lease obligations, less current installments	$	1,049		$	62

The Notes are recorded at cost net of discount and issuance costs. The effective interest rate of the Notes, which includes interest on the Notes and amortization of discount and issuance costs, is approximately 5.28%. The estimated fair value of the Notes at July 3, 2016, based on observable market prices (Level 2), exceeded the carrying value by approximately $80 million.

(9) Income Taxes

Income taxes resulted in an effective tax rate of approximately 39.0% and 38.4% for the twelve and forty weeks ended July 3, 2016, respectively, compared to approximately 39.0% for each of the same periods of the prior fiscal year. The lower effective tax rate for the forty weeks ended July 3, 2016 compared to the prior fiscal year is due to the recognition of an environmental tax credit related to the development of a new store.

(10) Shareholders’ Equity

Dividends per Common Share

The following table provides a summary of dividends declared per common share during fiscal year 2016 to date and fiscal year 2015 (in millions, except per share amounts):



Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2016:
November 4, 2015	$	0.135	January 15, 2016	January 26, 2016	$	44
March 9, 2016	0.135		April 8, 2016	April 19, 2016	44
June 7, 2016⁽¹⁾	0.135		July 1, 2016	July 12, 2016	43
Fiscal year 2015:
November 5, 2014	$	0.130	January 16, 2015	January 27, 2015	$	47
March 10, 2015	0.130		April 10, 2015	April 21, 2015	47
June 9, 2015	0.130		July 2, 2015	July 14, 2015	47
September 15, 2015	0.130		October 2, 2015	October 13, 2015	45

⁽¹⁾ Dividend accrued at July 3, 2016

Treasury Stock

On November 4, 2015, a new share repurchase program was authorized pursuant to the authority of the Company’s Board of Directors (the “Board”) whereby the Company may make up to $1.0 billion in stock repurchases of outstanding shares of the common stock of the Company. The following table outlines the share repurchase programs authorized by the Board, and the related repurchase activity and available authorization as of July 3, 2016 (in millions):



Effective date	Expiration date	Amount authorized		Cost of repurchases		Authorization available
August 1, 2014	August 1, 2016	$	1,000	$	1,000	$	—
November 4, 2015	Not applicable	1,000		542		458

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Under the share repurchase program, purchases can be made from time to time using a variety of methods, which may include open market purchases. The current repurchase program does not have an expiration date and the specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. Purchases may be made through a Rule 10b5-1 plan pursuant to pre-determined metrics set forth in such plan. The Board’s authorization of the share repurchase program does not obligate the Company to acquire any particular amount of common stock, and the program may be suspended or discontinued at any time at the Company’s discretion.

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



	Twelve weeks ended				Forty weeks ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Number of common shares acquired	6.5		2.1		31.2		3.9
Average price per common share acquired	$	30.01	$	45.98	$	29.85	$	48.29
Total cost of common shares acquired	$	195	$	98	$	929	$	188

The Company reissued approximately 1.1 million treasury shares at cost of approximately $39 million and approximately 2.1 million treasury shares at cost of approximately $90 million to satisfy the issuance of common stock pursuant to team member stock plans during the forty weeks ended July 3, 2016 and July 5, 2015, respectively. At July 3, 2016 and September 27, 2015, the Company held in treasury approximately 58.2 million shares and 28.2 million shares, respectively, totaling approximately $2.0 billion and $1.1 billion, respectively.

(11) Earnings per Share

The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period. The computation of diluted earnings per share includes the dilutive effect of common stock equivalents consisting of incremental common shares deemed outstanding from the assumed exercise of stock options and the dilutive effect of restricted stock awards. A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts):



	Twelve weeks ended				Forty weeks ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Net income (numerator for basic and diluted earnings per share)	$	120	$	154	$	419	$	479

Weighted average common shares outstanding (denominator for basic earnings per share)	320.6		358.5		328.4		359.6
Incremental common shares attributable to dilutive effect of share-based awards	0.6		2.0		0.9		2.6
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	321.2		360.5		329.3		362.2

Basic earnings per share	$	0.37	$	0.43	$	1.27	$	1.33

Diluted earnings per share	$	0.37	$	0.43	$	1.27	$	1.32

The computation of diluted earnings per share for the twelve and forty weeks ended July 3, 2016 does not include share-based awards to purchase approximately 23.6 million shares and 20.8 million shares of common stock, respectively, due to their antidilutive effect. The computation of diluted earnings per share for the twelve and forty weeks ended July 5, 2015 does not include share-based awards to purchase approximately 13.8 million shares and 9.8 million shares of common stock, respectively, due to their antidilutive effect.

(12) Share-Based Payments

Share-based payment expense, primarily included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations, totaled approximately $11 million and $39 million, respectively, during the twelve and forty weeks ended July 3, 2016, and totaled approximately $14 million and $51 million, respectively, for the same periods of the prior fiscal year. At July 3, 2016 and September 27, 2015, approximately 29.8 million shares and 32.9 millionshares of the Company’s common stock, respectively, were available for future stock incentive grants.

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Stock Options

During the twelve and forty weeks ended July 3, 2016, the Company awarded approximately 4.9 million stock options and 5.0 million stock options, respectively, pursuant to the Whole Foods Market 2009 Stock Incentive Plan compared to approximately 4.8 million stock options and 5.3 million stock options, respectively, for the same periods of the prior fiscal year. The weighted average grant date fair value of options granted during the forty weeks ended July 3, 2016 and July 5, 2015 was $6.71 and $10.19, respectively.

The fair value of stock option grants during the forty weeks ended July 3, 2016 and July 5, 2015 has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:



	2016		2015
Expected dividend yield	1.73	%	1.00	%
Risk-free interest rate	1.08	%	1.20	%
Expected volatility	31.30	%	29.73	%
Expected life, in years	4.05		4.04

Total share-based payment expense related to vesting stock options totaled approximately $10 million and $37 million for the twelve and forty weeks ended July 3, 2016, respectively, and approximately $13 million and $48 million, respectively, for the same periods of the prior fiscal year. At July 3, 2016 and September 27, 2015, there was approximately $82 million and $95 million of unrecognized share-based payment expense, respectively, related to unvested stock options, net of estimated forfeitures, related to approximately 10.5 million shares and 11.5 million shares, respectively. The Company anticipates this expense to be recognized over a weighted average period of 3.1 years.

(13) Commitments and Contingencies

The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters in a manner that we believe best serves the interests of our stakeholders. From time to time we are a party to legal proceedings including matters involving shareholder claims, personnel and employment issues, personal injury, product liability, protecting our intellectual property, regulatory practices, acquisitions and other proceedings arising in the ordinary course of business. These matters have not resulted in any material losses to date. Certain litigation cases have been certified as class or collective actions and may seek substantial damages.

Our primary contingencies are associated with insurance and self-insurance obligations and litigation matters. Additionally, the Company has retention agreements with certain members of Company management which provide for payments under certain circumstances including change of control. Estimation of our insurance and self-insurance liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing and estimating the outcomes of these matters involve substantial uncertainties.

The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated, and is not currently a party to any legal proceeding that management believes could have a material adverse effect on our results of operations. Insurance and legal settlement liabilities are included in the “Other current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities.

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

Disclaimer on Forward-looking Statements

Certain statements in this report and from time to time in other filings with the Securities and Exchange Commission, news releases, reports, and other written and oral communications made by us and our representatives, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by words such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “see,” “continue,” “could,” “can,” “may,” “will,” “likely,” “depend,” “should,” “would,” “plan,” “predict,” “target,” and similar expressions, and include references to assumptions and relate to our future prospects, developments and business strategies. Except for the historical information contained herein, the matters discussed in this analysis are forward-looking statements that involve risks and uncertainties that may cause our actual results to be materially different from such forward-looking statements and could materially adversely affect our business, financial condition, operating results and cash flows. These risks and uncertainties include general business conditions, changes in overall economic conditions that impact consumer spending, the impact of competition and other factors which are often beyond the control of the Company, as well other risks listed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2015 and risks and uncertainties not presently known to us or that we currently deem immaterial. We wish to caution you that you should not place undue reliance on such forward-looking statements, which speak only as of the date on which they were made. We do 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 27, 2015.

Overview

Whole Foods Market is the leading natural and organic foods supermarket, the first national “Certified Organic” grocer, and uniquely positioned as America’s Healthiest Grocery Store™. We are a mission-driven company that aims to set the standards of excellence in food retailing. Our success is measured by customer satisfaction, team member happiness and excellence, return on invested capital, active environmental stewardship, service in our local and global communities, and win-win supplier partnerships, among other things. 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. The Company incorporated in 1978, opened the first Whole Foods Market store in 1980, and as of July 3, 2016, operated 452 stores: 432 stores in 42 U.S. states and the District of Columbia; 11 stores in Canada; and 9 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 comparable stores and open new stores. Our growth strategy includes opening new stores in existing and new areas and operating those stores successfully. 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 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-seventh full week after the store was opened or acquired. The calculation of comparable store sales excludes sales from relocated and remodeled stores with square footage changes greater than 20% to reduce the impact of square footage changes on the comparison. Stores closed for eight or more days are excluded from the comparable store base from the first fiscal week of closure until re-opened for a full fiscal week. Comparable store sales growth is calculated on a same-calendar-week to same-calendar-week constant currency basis. Companies define comparable store sales differently; thus growth rates across companies may not be comparable.

The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal years 2016 and 2015 are 52-week years.

Economic and Industry Factors

Food retailing is a large, intensely competitive industry and is evolving at an incredibly fast pace. Consumers have more options than ever before. Our competition 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, restaurants and home delivery, each of which competes with us on the basis of store ambiance and experience, product selection and quality, customer service, price, convenience or a combination of these factors.

We offer the broadest selection of high-quality natural and organic products, with a strong emphasis on perishable foods. We believe our high quality standards differentiate our stores from other supermarkets and enable us to attract and maintain a broad

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base of loyal customers. Our groundbreaking quality standards ban hundreds of ingredients commonly found in other stores as well as numerous manufacturing, farming, fishing and ranching practices that don’t measure up.

Third Quarter of Fiscal Year 2016 Summary


•	Record total sales of $3.7 billion, a 1.9% increase over the prior year


•	Comparable store sales decrease of 2.6%


•	Net income of $120 million, or 3.2% of sales


•	Diluted earnings per share of $0.37


•	EBITDA of $326 million, or 8.8% of sales


•	Adjusted Return on Invested Capital (“ROIC”) of 13.0%

During the twelve weeks ended July 3, 2016, we produced approximately $189 million in cash flows from operations, returned approximately $44 million in quarterly dividends to common shareholders and repurchased approximately $195 million of our common stock, or approximately 6.5 million shares. At July 3, 2016, we had approximately $1.1 billion in total debt and approximately $1.1 billion in total available capital.

Fourth Quarter of Fiscal Year 2016 Outlook

If comparable store sales in the fourth quarter of fiscal year 2016 are in line with the 2.4% quarter-to-date decrease at July 27, 2016 and healthcare cost trends continue, the Company would expect sales growth of approximately 2% and diluted earnings per share of $0.23 to $0.24 for the quarter. While the Company is hopeful that comparable store sales will improve over the remainder of the quarter as comparisons get easier and sales-building initiatives gain traction, the Company expects some ongoing offsetting impact from its value strategy and disinflation. The Company has opened three new stores as of July 27, 2016 and expects to open two additional stores in the fourth quarter.

Results of Operations

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



	Twelve weeks ended				Forty weeks ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of goods sold and occupancy costs	65.3		64.4		65.5		64.6
Gross profit	34.7		35.6		34.5		35.4
Selling, general and administrative expenses	28.5		28.4		28.3		28.4
Pre-opening expenses	0.5		0.3		0.4		0.4
Relocation, store closure and lease termination costs	0.1		0.1		0.1		0.1
Operating income	5.6		6.8		5.7		6.5
Interest expense	(0.3	)	—		(0.2	)	—
Investment and other income	—		0.1		0.1		0.1
Income before income taxes	5.3		6.9		5.6		6.6
Provision for income taxes	2.1		2.7		2.1		2.6
Net income	3.2	%	4.2	%	3.4	%	4.0	%

Figures may not sum due to rounding

Sales for the twelve and forty weeks ended July 3, 2016 totaled approximately $3.7 billion and $12.2 billion, respectively, increasing 1.9% and 2.3%, respectively, over the same periods of the prior fiscal year. Comparable store sales during the twelve and forty weeks ended July 3, 2016 and the same periods of the prior fiscal year are reflected in the table below.



	Twelve weeks ended				Forty weeks ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Comparable store sales	(2.6	)%	1.3	%	(2.4	)%	3.3	%
Change in transactions	(2.7	)%	0.8	%	(2.1	)%	1.3	%
Change in basket size	0.1	%	0.5	%	(0.3	)%	2.0	%

The rapid expansion of natural and organic product offerings across many new, as well as existing, competitors has had a negative impact on our comparable store sales growth over the last two years. While we continue to see a moderation in transaction count growth from the negative impact of competitors and cannibalization on our comparable store sales growth over the last year,

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we saw a significant improvement in items per basket during the twelve weeks ended July 3, 2016. The improvement in items per basket more than offset decreases in transactions and average price per item. We expanded our produce price investments and launched weekly deep discount promotions in several categories. The combination of our value strategy, disinflation in some categories, and customers trading down to lower-priced items resulted in a year-over-year decline in average price per item. While our value strategy is continuing to negatively impact comparable store sales, we are seeing a broad-based lift in items per basket and are encouraged by improving traffic trends in certain key departments, particularly produce. Comparable stores contributed approximately 94.5% and 94.1% of total sales for the twelve and forty weeks ended July 3, 2016, respectively, compared to approximately 92.9% and 93.4%, respectively, for the same periods of the prior fiscal year. As of July 3, 2016, there were 420 locations in the comparable store base as compared to 383 locations at July 5, 2015.

The Company’s gross profit as a percentage of sales for the twelve and forty weeks ended July 3, 2016 was approximately 34.7% and 34.5%, respectively, compared to approximately 35.6% and 35.4%, respectively, for the same periods of the prior fiscal year. Gross profit for the forty weeks ended July 5, 2015 included a supplier credit of approximately $9 million or 8 basis points as a percentage of sales. Excluding the impact of the supplier credit, gross profit declined 84 basis points year over year for the forty weeks ended July 3, 2016 driven by an increase in cost of goods sold as a percentage of sales, primarily reflecting our value efforts.

Selling, general and administrative expenses as a percentage of sales were approximately 28.5% and 28.3% for the twelve and forty weeks ended July 3, 2016, respectively, compared to approximately 28.4% for the same periods of the prior fiscal year. During the twelve and forty weeks ended July 3, 2016, selling, general and administrative expenses included an 82 basis point and 65 basis point improvement in wages, respectively, that was more than offset by higher healthcare, depreciation, marketing and technology expenses as a percentage of sales. Higher-than-expected healthcare expenses were due to an increase in catastrophic claims and costs for certain prescription medicines, while technology and marketing investments were in line with our expectations. Technology expense and related depreciation increased during the twelve and forty weeks ended July 3, 2016 by approximately $10 million and $30 million, respectively, primarily due to costs associated with the rollout of our new unified point-of-sale system. Marketing expenses increased during the twelve weeks ended July 3, 2016 by approximately $8 million, primarily related to investments in paid media. The forty weeks ended July 5, 2015 included approximately $13 million associated with the Company’s national brand campaign.

Pre-opening expenses totaled approximately $18 million and $49 million for the twelve and forty weeks ended July 3, 2016, respectively, compared to approximately $12 million and $53 million, respectively, for the same periods of the prior fiscal year.

Relocation, store closure and lease termination costs totaled approximately $2 million and $8 million for the twelve and forty weeks ended July 3, 2016, respectively, compared to approximately $2 million and $12 million, respectively, for the same periods of the prior fiscal year.

The numbers of stores opened and relocated were as follows:



	Twelve weeks ended		Forty weeks ended
	July 3, 2016	July 5, 2015	July 3, 2016	July 5, 2015
New stores	11	8	21	23
Relocated stores	1	—	2	5

Interest expense, primarily related to the Company’s $1.0 billion offering of 5.2% senior notes completed on December 3, 2015, totaled approximately $12 million and $30 million for the twelve and forty weeks ended July 3, 2016, respectively. Interest expense was not material for the twelve and forty weeks ended July 5, 2015.

Investment and other expense for the twelve weeks ended July 3, 2016 totaled approximately $1 million, primarily related to net investment losses partially offset by gift card breakage. Investment and other income, which includes gift card breakage, investment gains and losses, interest income, and other income, totaled approximately $8 million for the forty weeks ended July 3, 2016 compared to approximately $5 million and $12 million, respectively, for the same periods of the prior fiscal year.

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Non-GAAP measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides information regarding Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Return on Invested Capital (“ROIC”) and adjusted 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. Management believes ROIC and adjusted ROIC are useful to investors and analysts because each measures how effectively we are deploying our assets.

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



	Twelve weeks ended					Forty weeks ended
	July 3, 2016		July 5, 2015			July 3, 2016			July 5, 2015
Net income	$	120	$	154		$	419		$	479
Provision for income taxes	76		98			261			306
Interest expense	12		—			30			—
Investment and other income	1		(5		)	(8		)	(12		)
Operating income	209		247			702			773
Depreciation and amortization	117		106			376			331
EBITDA	$	326	$	353		$	1,078		$	1,104

The Company defines ROIC as ROIC earnings divided by average invested capital. ROIC earnings and adjustments to ROIC earnings are defined in the following tabular reconciliation. Invested capital reflects a trailing four-quarter average. ROIC and adjusted ROIC were as follows (in millions):



	Fifty-two weeks ended
	July 3, 2016			July 5, 2015
Net income	$	475		$	607
Interest expense, net of tax	18			—
ROIC earnings	493			607
Total rent expense, net of tax ⁽¹⁾	279			258
Estimated depreciation on capitalized operating leases, net of tax ⁽²⁾	(186		)	(172		)
ROIC earnings, including the effect of capitalized operating leases	$	586		$	693

Average working capital, excluding current portion of long-term debt	$	598		$	525
Average property and equipment, net	3,240			2,999
Average other assets	1,016			1,090
Average other liabilities	(682		)	(620		)
Average invested capital	4,172			3,994
Average estimated asset base of capitalized operating leases⁽³⁾	3,632			3,378
Average invested capital, including the effect of capitalized operating leases	$	7,804		$	7,372

ROIC	11.8%			15.2%
ROIC, including the effect of capitalized operating leases	7.5%			9.4%

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	Fifty-two weeks ended
	July 3, 2016			July 5, 2015
Net income	$	475		$	607
Interest expense, net of tax	18			—
Adjustments, net of tax ⁽⁴⁾	48			1
Adjusted ROIC earnings	541			608
Total rent expense, net of tax ⁽¹⁾	279			258
Estimated depreciation on capitalized operating leases, net of tax ⁽²⁾	(186		)	(172		)
Adjusted ROIC earnings, including the effect of capitalized operating leases	$	634		$	694

Average working capital, excluding current portion of long-term debt	$	598		$	525
Average property and equipment, net	3,240			2,999
Average other assets	1,016			1,090
Average other liabilities	(682		)	(620		)
Average invested capital	4,172			3,994
Average estimated asset base of capitalized operating leases⁽³⁾	3,632			3,378
Average invested capital, including the effect of capitalized operating leases	$	7,804		$	7,372

Adjusted ROIC	13.0%			15.2%
Adjusted ROIC, including the effect of capitalized operating leases	8.1%			9.4%

⁽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

⁽⁴⁾ Adjustments include non-cash asset impairment charges and Q4 2015 restructuring charge

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):



	July 3, 2016		September 27, 2015
Cash and cash equivalents	$	472	$	237
Short-term investments - available-for-sale securities	153		155
Total	$	625	$	392

Additionally, the Company had $500 million available under its revolving credit facility at July 3, 2016 and held long-term investments in available-for-sale securities totaling approximately $63 million at September 27, 2015.

We generated cash flows from operating activities totaling approximately $764 million during the forty weeks ended July 3, 2016 compared to approximately $997 million during the same period of the prior fiscal year. The decrease in cash flows from operating activities resulted primarily from lower net income plus non-cash expenses and changes in operating working capital. During the forty weeks ended July 3, 2016, operating working capital included additional federal and state income tax payments of approximately $94 million, payment of restructuring charges totaling approximately $31 million, and interest payments totaling $27 million compared to the same period of the prior fiscal year.

Net cash used in investing activities totaled approximately $477 million for the forty weeks ended July 3, 2016 compared to approximately $671 million for the same period of the prior fiscal year. Net sales and maturities of available-for-sale securities totaled approximately $64 million during the forty weeks ended July 3, 2016 compared to approximately $39 million for 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, the acquisition of property and equipment for existing stores, and technology investments. The required cash investment for new stores varies depending on the size of the new store, geographic location, degree of work performed by the landlord and complexity of site development issues. Capital expenditures for the forty weeks ended July 3, 2016 totaled approximately $521 million, of which approximately $295 million was for the development of new locations. Capital expenditures for the forty weeks ended July 5, 2015 totaled approximately $679 million, of which approximately $411 million was for the development of new locations.

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The Company sees the potential for 1,200 Whole Foods Market stores in the United States, with the new 365 format expanding the growth opportunity beyond 1,200 stores. The following table provides additional information about the Company’s new and acquired stores and development pipeline for Whole Foods Market and 365 stores scheduled to open through fiscal year 2021:



	New and acquired stores during fiscal year 2015	New stores during fiscal year 2016 as of July 27, 2016	Leases signed as of July 27, 2016
	New and acquired stores during fiscal year 2015	New stores during fiscal year 2016 as of July 27, 2016	WFM	365	Total
Number of stores (including relocations)	38	26	86	20	106
Number of relocations	6	2	17	—	17
Percentage in new markets	11%	23%	16%	25%	18%
Total square footage	1,653,000	1,104,000	3,972,000	522,000	4,494,000

We believe we will produce operating cash flows in excess of the capital expenditures needed to open the 106 stores in our current store development pipeline. We have a disciplined, opportunistic real estate strategy, opening stores in existing trade areas as well as new areas, including international locations. Our growth strategy is to expand primarily through new store openings, and while we may pursue acquisitions of smaller chains that provide access to desirable geographic areas and experienced team members, such acquisitions are not expected to significantly impact our future store growth or financial results.

Net cash used in financing activities totaled approximately $57 million for the forty weeks ended July 3, 2016 compared to approximately $255 million for the same period of the prior fiscal year.

On November 2, 2015, the Company entered into new $500 million five-year revolving credit facility (the “Credit Agreement”). The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate, on November 2, 2020. During the first quarter of fiscal year 2016, the Company borrowed and repaid $300 million under the Credit Agreement.

On December 3, 2015, the Company completed its offering of $1.0 billion aggregate principal amount of its 5.2% senior notes due 2025 (the “Notes”). In connection with the offering of the Notes, the Company entered into a registration rights agreement pursuant to which, among other things, the Company agreed to file with the Securities and Exchange Commission (the “SEC”) a registration statement (the “Exchange Offer Registration Statement”) relating to an offer to exchange (the "Exchange Offer") the Notes for new SEC-registered notes (the “Exchange Notes”) containing terms substantially identical to the Notes (except that the transfer restrictions on the Exchange Notes will be modified or eliminated and there will be no registration rights). In the event that the Company is not permitted to file the Exchange Offer Registration Statement or to consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or SEC policy or, in certain other circumstances, including if for any reason the Exchange Offer Registration Statement is not declared effective by the SEC on or prior to December 2, 2016, the Company will file with the SEC a shelf registration statement with respect to resales of the Notes by the holders thereof. Pursuant to the registration rights agreement, the interest rate on the Notes is subject to increase under certain circumstances during any period in which the Company is not in compliance with its obligations under the registration rights agreement. Although the Company intends to file the Exchange Offer Registration Statement and consummate the Exchange Offer in a manner consistent with the registration rights agreement, the Company can provide no assurances that the Exchange Offer will be consummated on the terms contemplated in the registration rights agreement or at all, or that the Company will not be subject to increased interest expense as a result of its non-compliance with the registration rights agreement.

The Notes will mature on December 3, 2025. The Company intends to use net proceeds from the offering for general corporate purposes, including stock repurchases and the repayment of indebtedness from time to time.

Additional information regarding the Credit Agreement and the Notes is included in Note 8 of the Notes to the Consolidated Financial Statements.

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Share repurchase activity for fiscal year 2016 through July 3, 2016 and fiscal year 2015 was as follows (in millions, except per share amounts):



	Number of common shares acquired ⁽¹⁾	Average price per common share acquired		Total cost of common shares acquired
Fiscal year 2016:
First Quarter	21.2	$	29.96	$	634
Second Quarter	3.5	28.88		100
Third Quarter	6.5	30.01		195
Total fiscal year 2016	31.2	$	29.85	$	929
Fiscal year 2015:
First Quarter	0.9	$	47.39	$	43
Second Quarter	0.9	55.02		47
Third Quarter	2.1	45.98		98
Fourth Quarter	9.9	32.66		325
Total fiscal year 2015	13.8	$	37.06	$	513

⁽¹⁾ Number of shares may not sum due to rounding

During the first quarter of fiscal year 2016, a new share repurchase program was authorized pursuant to the authority of the Company’s Board of Directors (the “Board”) whereby the Company may make up to $1.0 billion in stock repurchases of outstanding shares of the common stock of the Company. The following table outlines the share repurchase programs authorized by the Board, and the related repurchase activity and available authorization as of July 3, 2016 (in millions):



Effective date	Expiration date	Amount authorized		Cost of repurchases		Authorization available
August 1, 2014	August 1, 2016	$	1,000	$	1,000	$	—
November 4, 2015	Not applicable	1,000		542		458

During the first quarter of fiscal year 2016, the Board increased the Company’s quarterly dividend to $0.135 per common share from $0.130 per common share. The following table provides a summary of dividends declared per common share during fiscal year 2016 to date and fiscal year 2015 (in millions, except per share amounts):



Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2016:
November 4, 2015	$	0.135	January 15, 2016	January 26, 2016	$	44
March 9, 2016	0.135		April 8, 2016	April 19, 2016	44
June 7, 2016⁽¹⁾	0.135		July 1, 2016	July 12, 2016	43
Fiscal year 2015:
November 5, 2014	$	0.130	January 16, 2015	January 27, 2015	$	47
March 10, 2015	0.130		April 10, 2015	April 21, 2015	47
June 9, 2015	0.130		July 2, 2015	July 14, 2015	47
September 15, 2015	0.130		October 2, 2015	October 13, 2015	45

⁽¹⁾ Dividend accrued at July 3, 2016

The Company will pay future dividends at the discretion of the Board. 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.

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Net proceeds to the Company from the exercise of stock options by team members for the forty weeks ended July 3, 2016 totaled approximately $17 million compared to approximately $61 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 July 3, 2016 and September 27, 2015, approximately 29.8 million shares and 32.9 million shares of our common stock, respectively, were available for future stock incentive grants.

In addition to the Company’s debt obligations referenced above, 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 July 3, 2016 (in millions):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Senior notes	$	1,000	$	—	$	—	$	—	$	1,000
Estimated interest on senior notes	520		52		104		104		260
Capital lease obligations (including interest)	93		6		10		10		67
Operating lease obligations ⁽¹⁾	9,048		440		1,067		1,116		6,425
Total	$	10,661	$	498	$	1,181	$	1,230	$	7,752

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

Gross unrecognized tax benefits and related interest and penalties at July 3, 2016 were not material. 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 July 3, 2016, 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 conditions, we expect planned expansion and other anticipated working capital and capital expenditure requirements for the next 12 months will be funded by these sources.

The Company intends to maintain an investment-grade profile and a balance sheet that provides the financial flexibility to pursue its strategic growth initiatives. 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 July 3, 2016 consist of operating leases disclosed in the above contractual obligations table, as well as the Credit Agreement discussed above. Additionally, we enter into forward purchase agreements for certain products in the ordinary course of business. Purchase commitments do not exceed anticipated use within an operating cycle. 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 of the Notes to Consolidated Financial Statements.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to interest rate changes and changes in market values on our investments and long-term debt. We do not use financial instruments for trading or other speculative purposes. We are also exposed to foreign exchange fluctuations on our foreign subsidiaries.

The analysis presented for each of our market risk sensitive instruments is based on a 10% change in interest or currency exchange rates. These changes are hypothetical scenarios used to calibrate potential risk and do not represent our view of future market changes. As the hypothetical figures discussed below indicate, changes in fair value based on the assumed change in rates generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The effect of a variation in a particular assumption is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which may magnify or counteract the sensitivities.

Interest Rate Risk

We seek to minimize the risks from interest rate fluctuations through ongoing evaluation of the composition of our investments.

The Company holds short-term investments that are classified as cash equivalents. We had cash equivalent investments totaling approximately $229 million and $32 million at July 3, 2016 and September 27, 2015, respectively. The Company also holds available-for-sale securities generally consisting of state and local municipal obligations and corporate bonds and commercial paper which hold high credit ratings. We had short-term investments totaling approximately $153 million at July 3, 2016 compared to short-term and long-term investments of approximately $155 million and $63 million, respectively, at September 27, 2015.

These investments are recorded at fair value and are generally short term in nature, and therefore changes in interest rates would not have a material impact on the valuation of these investments. During the twelve weeks ended July 3, 2016 and July 5, 2015, a hypothetical 10% increase or decrease in interest rates would not have materially affected interest income earned on these investments.

We have outstanding $1.0 billion aggregate principal amount of senior notes due 2025 (the “Notes”). The Notes bear interest at a fixed rate equal to 5.2% per year, payable semiannually. The interest rate payable on the Notes is subject to adjustment upon the occurrence of certain credit rating events described in the agreement. A downgrade in credit rating from either Moody’s or S&P would not materially affect annual interest payments.

We also have outstanding a $500 million revolving line of credit (the “Credit Agreement”) that extends to 2020, which may be increased from time to time by up to $250 million in the aggregate pursuant to an expansion feature set forth in the Credit Agreement. At July 3, 2016, the Company had no amounts outstanding.

Additional information on the Notes and Credit Agreement as of July 3, 2016 are as follows (in millions):



	July 3, 2016
Senior notes:
Outstanding balance	$	1,000
Fixed interest rate	5.200		%

Line of credit:
Outstanding balance	$	—
Variable interest rate	n/a
Applicable margin	0.125		%

The Notes and Credit Agreement were entered into during the first quarter of fiscal year 2016. No debt was outstanding as of September 27, 2015. The nature and amount of our long-term debt may vary as a result of future business requirements, market conditions, and other factors. Fluctuations in interest rates may affect the fair value of the fixed-rate debt. The estimated fair value of the Company’s long-term debt is included in Note 8 of the Notes to the Consolidated Financial Statements.

Foreign Currency Risk

The Company is exposed to foreign currency exchange risk. We own and operate 11 stores in Canada and 9 stores in the U.K. Sales made from stores in Canada and the U.K. are made in exchange for Canadian dollars and Great Britain pounds sterling, respectively. The Company does not currently hedge against the risk of exchange rate fluctuations.

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At July 3, 2016, a hypothetical 10% change in value of the U.S. dollar relative to the Canadian dollar or Great Britain pound sterling would not have materially affected our consolidated financial statements.

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 Securities Exchange Act of 1934, as amended (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 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.

We are in the process of implementing a new unified point of sale system. This implementation is not in response to an identified control deficiency or weakness, but has resulted in changes to our business processes and related internal controls over financial reporting. Management has taken the necessary steps to update the design and documentation of internal control processes and procedures relating to the system implementation to supplement and complement existing internal controls. Management will continue to monitor, evaluate and update the related processes and internal controls as necessary during the post-implementation period to ensure adequate internal control over financial reporting.

Other than as described above, 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 recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

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Part II. Other Information

Item 1. Legal Proceedings.

Information related to the Company’s legal proceedings is discussed in Note 13 of the Notes to Consolidated Financial Statements in Part I of this report.

Item 1A. Risk Factors.

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended September 27, 2015.

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 July 3, 2016.



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⁾
April 11, 2016 - May 8, 2016	2,465,996	$	28.79	2,465,996	$	582,200,252
May 9, 2016 - June 5, 2016	4,039,713	30.76		4,039,713	457,947,710
June 6, 2016 - July 3, 2016	—	—		—	457,947,710
Total	6,505,709	$	30.01	6,505,709


⁽¹⁾	Periodic information is presented by reference to our fiscal periods during the third quarter of fiscal year 2016.

⁽²⁾

On November 4, 2015, the Board authorized a share repurchase program whereby the Company may make up to $1.0 billion in stock purchases of outstanding shares of common stock of the Company. The repurchase program does not have an expiration date. Under the share repurchase programs, purchases can be made from time to time using a variety of methods, which may include open market purchases. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. Purchases may be made through a Rule 10b5-1 plan pursuant to pre-determined metrics set forth in such plan. The Board’s authorization of the share repurchase program does not obligate the Company to acquire any particular amount of common stock, and the program may be suspended or discontinued at any time at the Company’s discretion.

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Item 6. Exhibits.



3.1	Amended and Restated Articles of Incorporation of the Registrant, dated September 15, 2015 (1)
3.2	Amended and Restated Bylaws of the Registrant adopted June 26, 2015 (2)
4.1	Indenture, dated December 3, 2015, between Registrant and U.S. Bank National Association (3)
4.2	First Supplemental Indenture, dated December 3, 2015, among Registrant, the Guarantors, and U.S. Bank National Association (3)
4.3	Form of 5.200% Senior Notes due 2025 (included in Exhibit 4.2) (3)
31.1	Certification of Co-Chief Executive Officer Pursuant to 17 CFR 240.13a -14(a) (4)
31.2	Certification of Co-Chief Executive Officer Pursuant to 17 CFR 240.13a - 14(a) (4)
31.3	Certification of Chief Financial Officer Pursuant to 17 CFR 240.13a - 14(a) (4)
32.1	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 (5)
32.2	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 (5)
32.3	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 (5)
101	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 3, 2016 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 (4)



	(1)	Filed as an exhibit to Registrant’s Form 10-K for the period ended September 27, 2015 filed November 13, 2015 and incorporated herein by reference.
	(2)	Filed as an exhibit to Registrant’s Form 8-K filed June 29, 2015 and incorporated herein by reference.
	(3)	Filed as an exhibit to Registrant’s Form 8-K filed December 4, 2015 and incorporated herein by reference.
	(4)	Filed herewith.
	(5)	Furnished herewith.

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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:	August 5, 2016	By:	/s/ Glenda Flanagan
			Glenda Flanagan
			Executive Vice President and Chief Financial Officer
			(Duly authorized officer and principal financial officer)

Document and Entity - shares	9 Months Ended
Document and Entity - shares	Jul. 03, 2016	Jul. 29, 2016
Document and Entity [Abstract]
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	--09-25
Document Period End Date	Jul. 03, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		318,804,485

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 03, 2016	Sep. 27, 2015
Statement of Financial Position [Abstract]
Common Stock, Shares Authorized	1,200,000,000	1,200,000,000
Common Stock, Shares, Issued	377,000,000	377,100,000
Common Stock, Shares, Outstanding	318,800,000	348,900,000
Common Stock, No Par Value
Treasury Stock, Shares	58,200,000	28,200,000

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended					4 Months Ended		9 Months Ended		12 Months Ended
	Jul. 03, 2016	Apr. 10, 2016	Sep. 27, 2015	Jul. 05, 2015	Apr. 12, 2015	Jan. 17, 2016	Jan. 18, 2015	Jul. 03, 2016	Jul. 05, 2015	Sep. 27, 2015
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.135	$ 0.135	$ 0.13	$ 0.13	$ 0.13	$ 0.135	$ 0.13	$ 0.405	$ 0.39	$ 0.52


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


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.


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.

Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 03, 2016	Sep. 27, 2015
Current assets:
Cash and cash equivalents	$ 472	$ 237
Short-term investments - available-for-sale securities	153	155
Restricted cash	123	127
Accounts receivable	319	218
Merchandise inventories	523	500
Prepaid expenses and other current assets	147	108
Deferred income taxes	188	199
Total current assets	1,925	1,544
Property and equipment, net of accumulated depreciation and amortization	3,376	3,163
Long-term investments - available-for-sale securities		63
Goodwill	710	710
Intangible assets, net of accumulated amortization	76	79
Deferred income taxes	143	144
Other assets	45	38
Total assets	6,275	5,741
Current liabilities:
Current installments of long-term debt and capital lease obligations	3	3
Accounts payable	292	295
Accrued payroll, bonus and other benefits due team members	409	436
Dividends payable	43	45
Other current liabilities	577	473
Total current liabilities	1,324	1,252
Long-term debt and capital lease obligations, less current installments	1,049	62
Deferred lease liabilities	626	587
Other long-term liabilities	91	71
Total liabilities	3,090	1,972
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value, 1,200 shares authorized; 377.0 and 377.1 shares issued; 318.8 and 348.9 shares outstanding at 2016 and 2015, respectively	2,924	2,904
Common stock in treasury, at cost, 58.2 and 28.2 shares at 2016 and 2015, respectively	(2,014)	(1,124)
Accumulated other comprehensive loss	(29)	(28)
Retained earnings	2,304	2,017
Total shareholders’ equity	3,185	3,769
Total liabilities and shareholders’ equity	$ 6,275	$ 5,741

Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common stock	Common stock in treasury	Accumulated other comprehensive loss	Retained earnings
Balances at Sep. 28, 2014	$ 3,813	$ 2,863	$ (711)	$ (7)	$ 1,668
Balances (in shares) at Sep. 28, 2014		360.4
Increase (Decrease) in Shareholders' Equity
Net income	536				536
Other comprehensive loss, net of tax	(21)			(21)
Dividends ($0.405 and $0.52 per common share for the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015, respectively)	(186)				(186)
Issuance of common stock pursuant to team member stock plans	66	$ (34)	100
Issuance of common stock pursuant to team member stock plans (in shares)		2.3
Purchase of treasury stock	(513)		(513)
Purchase of treasury stock (in shares)		(13.8)
Tax benefit related to exercise of team member stock options	11	$ 11
Share-based payment expense	64	64
Other	(1)				(1)
Balances at Sep. 27, 2015	$ 3,769	$ 2,904	(1,124)	(28)	2,017
Balances (in shares) at Sep. 27, 2015	348.9	348.9
Increase (Decrease) in Shareholders' Equity
Net income	$ 419				419
Other comprehensive loss, net of tax	(1)			(1)
Dividends ($0.405 and $0.52 per common share for the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015, respectively)	(131)				(131)
Issuance of common stock pursuant to team member stock plans	17	$ (22)	39
Issuance of common stock pursuant to team member stock plans (in shares)		1.1
Purchase of treasury stock	$ (929)		(929)
Purchase of treasury stock (in shares)	(31.2)	(31.2)
Tax benefit related to exercise of team member stock options	$ 3	$ 3
Share-based payment expense	39	39
Other	(1)				(1)
Balances at Jul. 03, 2016	$ 3,185	$ 2,924	$ (2,014)	$ (29)	$ 2,304
Balances (in shares) at Jul. 03, 2016	318.8	318.8

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Jul. 03, 2016	Jul. 05, 2015
Cash flows from operating activities
Net income	$ 419	$ 479
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	376	331
Share-based payment expense	39	51
LIFO expense	1	3
Deferred income tax expense	16	47
Excess tax benefit related to exercise of team member stock options	(4)	(10)
Accretion of premium/discount on marketable securities	1	14
Deferred lease liabilities	31	24
Other	7	10
Net change in current assets and liabilities:
Accounts receivable	(100)	(19)
Merchandise inventories	(25)	(47)
Prepaid expenses and other current assets	(39)	(4)
Accounts payable	(2)	16
Accrued payroll, bonus and other benefits due team members	(27)	26
Other current liabilities	57	72
Net change in other long-term liabilities	14	4
Net cash provided by operating activities	764	997
Cash flows from investing activities
Development costs of new locations	(295)	(411)
Other property and equipment expenditures	(226)	(268)
Purchases of available-for-sale securities	(311)	(458)
Sales and maturities of available-for-sale securities	375	497
Decrease (increase) in restricted cash	3	(19)
Payment for purchase of acquired entities, net of cash acquired	(11)	(4)
Other investing activities	(12)	(8)
Net cash used in investing activities	(477)	(671)
Cash flows from financing activities
Purchases of treasury stock	(929)	(188)
Common stock dividends paid	(133)	(137)
Issuance of common stock	17	61
Excess tax benefit related to exercise of team member stock options	4	10
Proceeds from long-term borrowings	999
Proceeds from revolving line of credit	300
Payments on long-term debt and capital lease obligations	(306)
Other financing activities	(9)	(1)
Net cash used in financing activities	(57)	(255)
Effect of exchange rate changes on cash and cash equivalents	5	(4)
Net change in cash and cash equivalents	235	67
Cash and cash equivalents at beginning of period	237	190
Cash and cash equivalents at end of period	472	257
Supplemental disclosure of cash flow information:
Federal and state income taxes paid	357	$ 263
Interest paid	$ 27

One-Time Termination Benefits	9 Months Ended
One-Time Termination Benefits	Jul. 03, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	One-Time Termination Benefits During fiscal year 2015, the Company communicated to certain team members its plan of termination to reduce a number of positions through the first quarter of fiscal year 2016 as part of its ongoing commitment to lower prices for its customers and invest in technology upgrades while improving its cost structure. The Company recorded one-time termination benefits in the fourth quarter of fiscal year 2015 totaling $34 million, included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations. The plan was substantially completed during the first quarter of fiscal year 2016, and adjustments to the related restructuring charges were not material.

Income Taxes	9 Months Ended
Income Taxes	Jul. 03, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Income Taxes Income taxes resulted in an effective tax rate of approximately 39.0% and 38.4% for the twelve and forty weeks ended July 3, 2016, respectively, compared to approximately 39.0% for each of the same periods of the prior fiscal year. The lower effective tax rate for the forty weeks ended July 3, 2016 compared to the prior fiscal year is due to the recognition of an environmental tax credit related to the development of a new store.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Jul. 03, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Commitments and Contingencies The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters in a manner that we believe best serves the interests of our stakeholders. From time to time we are a party to legal proceedings including matters involving shareholder claims, personnel and employment issues, personal injury, product liability, protecting our intellectual property, regulatory practices, acquisitions and other proceedings arising in the ordinary course of business. These matters have not resulted in any material losses to date. Certain litigation cases have been certified as class or collective actions and may seek substantial damages. Our primary contingencies are associated with insurance and self-insurance obligations and litigation matters. Additionally, the Company has retention agreements with certain members of Company management which provide for payments under certain circumstances including change of control. Estimation of our insurance and self-insurance liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing and estimating the outcomes of these matters involve substantial uncertainties. The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated, and is not currently a party to any legal proceeding that management believes could have a material adverse effect on our results of operations. Insurance and legal settlement liabilities are included in the “Other current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities.

Basis of Presentation (Percentage of Net Long-Lived Assets by Geographic Area) (Details)	Jul. 03, 2016	Sep. 27, 2015
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	100.00%	100.00%
United States [Member]
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	97.50%	97.40%
Canada and United Kingdom [Member]
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	2.50%	2.60%

Basis of Presentation (Narrative) (Details) - Segment	9 Months Ended	12 Months Ended
Basis of Presentation (Narrative) (Details) - Segment	Jul. 03, 2016	Sep. 27, 2015
Organization Consolidation and Presentation [Line Items]
Number of Operating Segments	1
Number of Reportable Segments	1
Fiscal Year [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	364 days	364 days
Fiscal Year [Member] \| Minimum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	364 days
Fiscal Year [Member] \| Maximum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	371 days
First Quarter [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	112 days
Second Quarter [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	84 days
Third Quarter [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	84 days
Fourth Quarter [Member] \| Minimum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	84 days
Fourth Quarter [Member] \| Maximum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	91 days

Fair Value Measurements (Fair Value Hierarchy) (Details) - Fair value, Measurements, Recurring [Member] - USD ($) $ in Millions	Jul. 03, 2016	Sep. 27, 2015
Assets, Fair Value Disclosure [Abstract]
Total	$ 389	$ 250
Level 1 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Total	165	32
Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Total	224	218
Money Market Funds [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	165	32
Money Market Funds [Member] \| Level 1 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	165	32
Commercial Paper [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	46
Commercial Paper [Member] \| Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	46
Asset-backed Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale		13
Asset-backed Securities [Member] \| Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale		13
Certificates of Deposit [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale		2
Certificates of Deposit [Member] \| Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale		2
Corporate Debt Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale		30
Corporate Debt Securities [Member] \| Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale		30
Municipal Notes Bonds [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	18
Marketable Securities - Available-for-sale	153	173
Municipal Notes Bonds [Member] \| Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	18
Marketable Securities - Available-for-sale	153	$ 173
Equity Interests [Member]
Assets, Fair Value Disclosure [Abstract]
Other Assets, Fair Value Disclosure	7
Equity Interests [Member] \| Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Other Assets, Fair Value Disclosure	$ 7

Investments (Investments at Fair Value) (Details) - USD ($) $ in Millions	Jul. 03, 2016	Sep. 27, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	$ 153	$ 155
Available-for-sale Securities, Noncurrent		63
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current		10
Available-for-sale Securities, Noncurrent		3
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current		2
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current		15
Available-for-sale Securities, Noncurrent		15
Municipal Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	$ 153	128
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Noncurrent		$ 45

Investments (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
Investments (Narrative) (Details) - USD ($) $ in Millions	Jul. 03, 2016	Sep. 27, 2015
Investments [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 0	$ 58
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 0
Short-term Investments Average Effective Maturity Period (in months), Less Than and Approximately, Respectively	1 month	7 months
Long-term Investments Average Effective Maturity Period (in months)		16 months
Cost Method Investments	$ 14	$ 14
Equity Interests at Fair Value	$ 7

Goodwill and Other Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions	Jul. 03, 2016	Sep. 27, 2015
Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite and Indefinite-Lived Intangible Assets, Gross	$ 130	$ 129
Finite-Lived Intangible Assets, Accumulated Amortization	(54)	(50)
Contract-Based Intangible Assets [Member]
Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	122	122
Finite-Lived Intangible Assets, Accumulated Amortization	(54)	(50)
Contract-Based Intangible Assets [Member]
Finite and Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	$ 8	$ 7

Goodwill and Other Intangible Assets (Future Amortization Expense) (Details) $ in Millions	Jul. 03, 2016 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 1
Finite-Lived Intangible Assets, Amortization Expense, Year Two	6
Finite-Lived Intangible Assets, Amortization Expense, Year Three	5
Finite-Lived Intangible Assets, Amortization Expense, Year Four	5
Finite-Lived Intangible Assets, Amortization Expense, Year Five	5
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	46
Finite-Lived Intangible Assets, Future Amortization Expense	$ 68

Goodwill and Other Intangible Assets (Narrative) (Details) $ in Millions	9 Months Ended
	Jul. 03, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Additions	$ 0
Goodwill, Adjustments	$ 0

One-Time Termination Benefits (Narrative) (Details) $ in Millions	3 Months Ended
	Sep. 27, 2015 USD ($)
Selling, General and Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 34

Reserves for Closed Properties (Reserves for Closed Properties) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Jul. 03, 2016	Sep. 27, 2015
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 28	$ 31
Additions	4	9
Usage	(8)	(13)
Adjustments	2	1
Ending Balance	$ 26	$ 28

Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions	Jul. 03, 2016	Sep. 27, 2015
Debt Instrument [Line Items]
Total Long-Term Debt and Capital Lease Obligations	$ 1,052	$ 65
Less: Current Installments	(3)	(3)
Total Long-Term Debt and Capital Lease Obligations, Less Current Installments	1,049	62
Unsecured Debt [Member] \| 5.2% Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
5.2% Senior Notes due 2025	1,000
Less: Unamortized Discount and Debt Issuance Costs Related to Senior Notes	(7)
Carrying Value of Senior Notes	993
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Capital Lease Obligations	$ 59	$ 65

Long-Term Debt (Credit Agreement) (Narrative) (Details) - USD ($) $ in Millions	4 Months Ended	9 Months Ended
	Jan. 17, 2016	Jul. 03, 2016
Line of Credit Facility [Line Items]
Proceeds from Revolving Line of Credit	$ 300	$ 300
Repayments of Revolving Line of Credit	$ 300
Revolving Line of Credit		$ 0
Unsecured Debt [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date		Nov. 02, 2015
Line of Credit Facility, Expiration Date		Nov. 02, 2020
Unsecured Debt [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 500
Conditional Additional Borrowing Capacity Under Line of Credit Facility		$ 250
Line of Credit Facility, Frequency of Commitment Fee Payment		quarterly
Unsecured Debt [Member] \| Revolving Credit Facility [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Commitment Fee Percentage		0.125%
Unsecured Debt [Member] \| Revolving Credit Facility [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Commitment Fee Percentage		0.30%
Unsecured Debt [Member] \| Letter of Credit [Member]
Line of Credit Facility [Line Items]
Conditional Additional Borrowing Capacity Under Line of Credit Facility		$ 250
Unsecured Debt [Member] \| Swingline Loan [Member]
Line of Credit Facility [Line Items]
Conditional Additional Borrowing Capacity Under Line of Credit Facility		$ 50
Unsecured Debt [Member] \| Eurodollar [Member] \| Adjusted LIBO Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Description of Variable Rate Basis		adjusted London interbank offered rate (“Adjusted LIBO Rate”) for a one, two, three, or six month interest period
Unsecured Debt [Member] \| Eurodollar [Member] \| Minimum [Member] \| Adjusted LIBO Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.125%
Unsecured Debt [Member] \| Eurodollar [Member] \| Maximum [Member] \| Adjusted LIBO Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.75%
Unsecured Debt [Member] \| Non Eurodollar Borrowings [Member] \| Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Description of Variable Rate Basis		Prime Rate
Unsecured Debt [Member] \| Non Eurodollar Borrowings [Member] \| Federal Funds Rate plus 0.5% [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Description of Variable Rate Basis		Federal Funds Rate plus 0.5%
Unsecured Debt [Member] \| Non Eurodollar Borrowings [Member] \| Adjusted LIBO Rate for a one-month interest period plus 1% [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Description of Variable Rate Basis		Adjusted LIBO Rate for a one-month interest period plus 1%
Unsecured Debt [Member] \| Non Eurodollar Borrowings [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.125%
Unsecured Debt [Member] \| Non Eurodollar Borrowings [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.75%