Whole Foods 2013 Annual Report Download - page 57

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Depreciation and amortization expense related to property and equipment totaled approximately $324 million, $297 million and
$274 million for fiscal years 2013, 2012 and 2011, respectively. Property and equipment included accumulated accelerated
depreciation and other asset impairments totaling approximately $4 million and $3 million at September 29, 2013 and
September 30, 2012, respectively. Development costs of new locations totaled approximately $339 million, $262 million and
$203 million in fiscal years 2013, 2012 and 2011, respectively. Construction accruals related to development sites, remodels,
and expansions were included in the “Other current liabilities” line item on the Consolidated Balance Sheets and totaled
approximately $103 million and $80 million at September 29, 2013 and September 30, 2012, respectively.
(6) Goodwill and Other Intangible Assets
The Company recorded goodwill totaling approximately $16 million primarily related to the acquisition of six retail locations
during fiscal year 2013. No additions or adjustments to goodwill were recorded during fiscal year 2012. There were no
impairments of goodwill during fiscal years 2013, 2012 or 2011. The Company acquired definite-lived intangible assets totaling
approximately $6 million, primarily favorable lease assets related to the acquisition of six retail locations, during fiscal year
2013. Acquisitions of definite-lived intangible assets were not material during fiscal year 2012. The components of intangible
assets were as follows (in millions):
September 29, 2013 September 30, 2012
Gross carrying
amount
Accumulated
amortization
Gross carrying
amount
Accumulated
amortization
Definite-lived contract-based $ 102 $ (40) $ 95 $ (35)
Definite-lived marketing-related and other 1 (1) 2 (2)
Indefinite-lived contract-based 3 2
Intangible assets $ 106 $ (41) $ 99 $ (37)
Amortization expense associated with intangible assets totaled approximately $5 million, $6 million and $7 million, during
fiscal years 2013, 2012 and 2011, respectively. Future amortization expense associated with the net carrying amount of definite-
lived intangible assets is estimated to be approximately as follows (in millions):
Fiscal year 2014 $ 5
Fiscal year 2015 5
Fiscal year 2016 4
Fiscal year 2017 4
Fiscal year 2018 4
Future fiscal years 40
Total future estimated amortization associated with definite-lived intangible assets $ 62
(7) Reserves for Closed Properties
The following table provides a summary of store closure reserve activity during the fiscal years indicated (in millions):
2013 2012
Beginning balance $ 41 $ 45
Additions 5 4
Usage (11) (10)
Adjustments 1 2
Ending balance $ 36 $ 41
Additions to store closure reserves primarily relate to the accretion of interest on existing reserves. The Company recorded
reserves totaling approximately $1 million related to eight and four new closures during fiscal years 2013 and 2012, respectively.
Usage primarily related to ongoing cash rental payments totaled approximately $11 million and $10 million during fiscal years
2013 and 2012, respectively.
(8) Long-Term Debt
During fiscal year 2011, the Company repaid the $490 million outstanding balance on the term loan agreement due in 2012.
The Company had no long-term debt amounts outstanding during fiscal year 2013 or 2012, and its $350 million line of credit
expired in 2012.