Whole Foods 2013 Annual Report Download - page 50

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Whole Foods Market, Inc.
Notes to Consolidated Financial Statements
Fiscal years ended September 29, 2013, September 30, 2012 and September 25, 2011
(1) Description of Business
Whole Foods Market, Inc. and its consolidated subsidiaries (collectively “Whole Foods Market,” “Company,” or “we”) is the
leading retailer of natural and organic foods. The Company’s mission is to promote the vitality and well-being of all individuals
by supplying the highest quality, most wholesome foods available. Through our growth, we have had a significant and positive
impact on the natural and organic foods movement throughout the United States, helping lead the industry to nationwide
acceptance over the last 35 years. As of September 29, 2013, we operated 362 stores: 347 stores in 40 United States (“U.S.”)
states and the District of Columbia; 8 stores in Canada; and 7 stores in the United Kingdom (“U.K.”).
On May 29, 2013, the Company completed a two-for-one stock split. All references made to share or per share amounts in the
accompanying consolidated financial statements and applicable disclosures reflect this two-for-one stock split.
The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets. The following
is a summary of annual percentage sales and net long-lived assets by geographic area for the fiscal years indicated:
2013 2012 2011
Sales:
United States 96.7% 96.8% 96.9%
Canada and United Kingdom 3.3 3.2 3.1
Total sales 100.0% 100.0% 100.0%
Long-lived assets, net:
United States 95.7% 95.2% 95.9%
Canada and United Kingdom 4.3 4.8 4.1
Total long-lived assets, net 100.0% 100.0% 100.0%
The following is a summary of annual percentage sales by product category for the fiscal years indicated:
2013 2012 2011
Perishables:
Prepared foods and bakery 19.0% 18.9% 18.8%
Other perishables 47.2 47.0 46.8
Total perishables 66.2 65.9 65.6
Non-perishables 33.8 34.1 34.4
Total sales 100.0% 100.0% 100.0%
(2) Summary of Significant Accounting Policies
Definition of Fiscal Year
The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal
years 2013 and 2011 were 52-week years and fiscal year 2012 was a 53-week year.
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting
principles. All significant majority-owned subsidiaries are consolidated on a line-by-line basis, and all significant intercompany
accounts and transactions are eliminated upon consolidation.
Cash and Cash Equivalents
We consider all highly liquid investments with an original maturity of 90 days or less to be cash equivalents.
Investments
Available-for-sale investments are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on
available-for-sale investments are excluded from earnings and are reported as a separate component of shareholders’ equity until
realized. A decline in the fair value of any available-for-sale security below cost that is deemed to be other than temporary for
a period greater than two fiscal quarters results in a reduction of the carrying amount to fair value. The impairment is charged
to earnings and a new cost basis of the security is established. Cost basis is established and maintained utilizing the specific
identification method.