Whole Foods 2013 Annual Report Download - page 35

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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):
September 29,
2013
September 30,
2012
Cash and cash equivalents $ 290 $ 89
Short-term investments - available-for-sale securities 733 1,131
Total $ 1,023 $ 1,220
Additionally, the Company held long-term investments in available-for-sale securities totaling approximately $302 million and
$221 million at September 29, 2013 and September 30, 2012, respectively.
We generated cash flows from operating activities of approximately $1.0 billion, $920 million and $755 million in fiscal years
2013, 2012 and 2011, respectively. Cash flows from operating activities resulted primarily from our net income plus non-cash
expenses and changes in operating working capital.
Net cash used in investing activities totaled approximately $289 million, $1.3 billion and $451 million for fiscal years 2013,
2012 and 2011, respectively. Net sales and maturities of available-for-sale securities totaled approximately $282 million in fiscal
year 2013 compared to net purchases totaling approximately $871 million and $73 million for fiscal years 2012 and 2011,
respectively. Our principal historical capital requirements have been the funding of the development or acquisition of new stores
and acquisition of property and equipment for existing stores. The required cash investment for new stores varies depending on
the size of the new store, geographic location, degree of landlord incentives and complexity of site development issues. Capital
expenditures for fiscal years 2013, 2012 and 2011 totaled approximately $537 million, $456 million and $365 million,
respectively, of which approximately $339 million, $262 million and $203 million, respectively, was for new store development
and approximately $198 million, $194 million and $162 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
during fiscal
year 2012
Stores opened
during fiscal
year 2013
Stores opened
during fiscal
year 2014 as of
Nov. 6, 2013
Properties
tendered as of
Nov. 6, 2013
Total leases
signed as of
Nov. 6, 2013 (1)
Number of stores (including relocations) 25 32 5 15 94
Number of relocations 1 5 — 1 9
New markets 8 10 2 8 22
Average store size (gross square feet) 35,000 36,000 34,000 37,000 38,000
Total square footage 887,000 1,138,000 171,000 561,000 3,605,000
Average tender period in months 7.9 8.7
Average pre-opening expense per store $2 million $2 million
Average pre-opening rent per store $1 million $1 million
(1) Includes leases for properties tendered
The following table provides information about the Company’s estimated store openings for fiscal years 2014 and 2015:
Estimated
openings Relocations
Average
new store
square footage
Ending square
footage growth
Fiscal year 2014 33 - 38 1 37,000 8% - 10%
Fiscal year 2015 35 - 40 3 - 4 38,000 8% - 10%
We believe we will produce operating cash flows in excess of the capital expenditures needed to open the 94 stores in our current
development pipeline. Our growth strategy is to expand primarily through new store openings, and while we may continue to
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. We have a disciplined,
opportunistic real estate strategy, opening stores in existing trade areas as well as new areas, including international locations.
Net cash used in financing activities totaled approximately $517 million and $223 million in fiscal years 2013 and 2011,
respectively. Net cash provided by financing activities totaled approximately $297 million in fiscal year 2012.