Whole Foods 2011 Annual Report Download - page 30

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funding of the development or acquisition of new stores and acquisition of property and equipment for existing stores. The
required cash investment for new stores varies depending on the size of the new store, geographic location, degree of work
performed by the landlord and complexity of site development issues. Capital expenditures for fiscal years 2011, 2010 and
2009 totaled approximately $365.0 million, $256.8 million and $314.6 million, respectively, of which approximately $203.5
million, $171.4 million and $248.0 million, respectively, was for new store development and approximately $161.5 million,
$85.4 million and $66.6 million, respectively, was for remodels and other property and equipment expenditures. The
following table provides information about the Company’ s store development activities:
Stores opened Properties Total
Stores opened Stores opened during fiscal tendered leases signed
during fiscal during fiscal year 2012 as of as of as of
year 2010 year 2011 Nov. 2, 2011 Nov. 2, 2011 Nov. 2, 20111
Number of stores (including relocations) 16 18 5 16 62
Number of relocations - 6 - 2 7
New areas 4 - 1 4 19
Average store size (gross square feet) 42,600 39,400 35,900 35,200 35,300
Total square footage 682,200 708,700 179,700 562,700 2,192,000
Average tender period in months 10.9 12.5
Average pre-opening expense per store $2.6 million $2.5 million
Average pre-opening rent per store $1.2 million $1.2 million
The following table provides information about the Company’ s estimated store openings for fiscal years 2012 and 2013.
Estimated Average new store Ending square
openings Relocations square footage footage growth
Fiscal year 2012 24 – 27 1 – 2 35,000 7% – 8%
Fiscal year 2013 28 – 32 2 – 3 35,000 7% – 8%
We believe we will produce operating cash flows in excess of the capital expenditures needed to open the 62 stores in our
development pipeline.
Over the long term, the Company considers 1,000 stores to be a reasonable indication of its market opportunity in the United
States as the Whole Foods Market brand continues to strengthen, consumer demand for natural and organic products
continues to increase, and the Company’ s flexibility on new store size opens up additional market opportunities. The
Company believes Canada and the United Kingdom hold great promise as well.
Net cash used in financing activities totaled approximately $223.6 million and $168.9 million in fiscal years 2011 and 2010,
respectively. Net cash provided by financing activities totaled approximately $199.5 million in fiscal year 2009. Proceeds
from the exercise of stock options by team members are driven by a number of factors, including fluctuations in our stock
price, and totaled approximately $296.7 million, $47.0 million and $4.3 million in fiscal years 2011, 2010 and 2009,
respectively.
During fiscal year 2007, the Company entered into a $700 million, five-year term loan agreement to finance the acquisition
of Wild Oats Markets. During fiscal year 2010, the Company repaid the $210 million portion of the term loan that was not
subject to an interest rate swap agreement. During fiscal year 2011, the Company repaid the $490 million outstanding
balance on the term loan.
The Company also has outstanding a $350 million revolving line of credit, which is secured by a pledge of substantially all
of the stock in our subsidiaries, that extends to August 2012. The credit agreement contains certain affirmative covenants
including maintenance of certain financial ratios and certain negative covenants including limitations on additional
indebtedness and payments as defined in the agreement. At September 25, 2011, we were in compliance with all applicable
debt covenants. All outstanding amounts borrowed under this agreement bear interest at our option of the alternative base
rate (“ABR”) plus an applicable margin, currently 0.375%, or LIBOR plus an applicable margin, currently 1.375%, based on
the Company’ s S&P rating. The participating banks hold security interests in certain of the Company’ s assets to collateralize
amounts outstanding under the revolving credit facility. Commitment fees on the undrawn amount, reduced by outstanding
letters of credit, are payable under this agreement. No amounts were drawn under this agreement at September 25, 2011 and
September 26, 2010. The amount available to the Company under the agreement was effectively reduced to $348.6 million
and $342.9 million by outstanding letters of credit totaling approximately $1.4 million and $7.1 million at September 25,
2011 and September 26, 2010, respectively.
1 Includes leased properties tendered