Whole Foods 2014 Annual Report Download - page 42

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Whole Foods Market, Inc.
Notes to Consolidated Financial Statements
Fiscal years ended September 28, 2014, September 29, 2013 and September 30, 2012
(1) Description of Business
Whole Foods Market 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 36 years. As of September 28, 2014, we operated 399 stores: 381 stores in 42
United States (“U.S.”) states and the District of Columbia; 9 stores in Canada; and 9 stores in the United Kingdom (“U.K.”).
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:
2014 2013 2012
Sales:
United States 96.7% 96.7% 96.8%
Canada and United Kingdom 3.3 3.3 3.2
Total sales 100.0% 100.0% 100.0%
Long-lived assets, net:
United States 96.0% 95.7% 95.2%
Canada and United Kingdom 4.0 4.3 4.8
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:
2014 2013 2012
Perishables:
Prepared foods and bakery 19.2% 19.0% 18.9%
Other perishables 47.6 47.2 47.0
Total perishables 66.8 66.2 65.9
Non-perishables 33.2 33.8 34.1
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 2014 and 2013 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 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. The Company considers several factors when determining whether an impairment is other than temporary,
including the extent and duration of the decline in fair value and whether it is more likely than not that we will be required to
sell the security before recovery of its basis. Cost basis is established and maintained utilizing the specific identification method.
The Company also holds certain equity interests accounted for using the cost method of accounting. Equity investments without
readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using