Whole Foods 2014 Annual Report Download - page 49

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approximately 6 months and 15 months, respectively, compared to approximately 5 months and 16 months, respectively, at
September 29, 2013.
At September 28, 2014, the Company held $10 million in equity interest that is accounted for using the cost method of accounting
and an ownership interest in a supplier company totaling approximately $4 million at September 28, 2014 which is accounted
for using the equity method of accounting. No such equity interests were held as of September 29, 2013.
(5) Property and Equipment
Balances of major classes of property and equipment were as follows (in millions):
September 28,
2014 September 29, 2013
Land $ 139 $ 77
Buildings and leasehold improvements 2,628 2,427
Capitalized real estate leases 81 33
Fixtures and equipment 2,099 1,706
Construction in progress and equipment not yet in service 362 269
Property and equipment, gross 5,309 4,512
Less accumulated depreciation and amortization (2,386) (2,084)
Property and equipment, net of accumulated depreciation and amortization $ 2,923 $ 2,428
Depreciation and amortization expense related to property and equipment totaled approximately $360 million, $324 million and
$297 million for fiscal years 2014, 2013 and 2012, respectively. Property and equipment included accumulated accelerated
depreciation and other asset impairments totaling approximately $9 million and $4 million at September 28, 2014 and
September 29, 2013, respectively. Development costs of new locations totaled approximately $447 million, $339 million and
$262 million in fiscal years 2014, 2013 and 2012, 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 $116 million and $103 million at September 28, 2014 and September 29, 2013, respectively.
(6) Goodwill and Other Intangible Assets
The Company recorded goodwill totaling approximately $29 million related to the acquisition of four retail locations, and
approximately $16 million, primarily related to the acquisition of six retail locations, during fiscal years 2014 and 2013,
respectively. There were no impairments of goodwill during fiscal years 2014, 2013 or 2012. The Company acquired definite-
lived intangible assets totaling approximately $18 million, primarily related to acquired leasehold rights, and approximately $6
million, primarily favorable lease assets related to the acquisition of six retail locations, during fiscal years 2014 and 2013,
respectively. The components of intangible assets as of the dates indicated were as follows (in millions):
September 28, 2014 September 29, 2013
Gross carrying
amount Accumulated amortization Gross carrying amount Accumulated amortization
Definite-lived contract-based $ 120 $ (45) $ 102 $ (40)
Definite-lived marketing-related and other 1 (1) 1 (1)
Indefinite-lived contract-based 6 3
Total $ 127 $ (46) $ 106 $ (41)
Amortization expense associated with intangible assets totaled approximately $5 million, $5 million and $6 million during fiscal
years 2014, 2013 and 2012, respectively. Future amortization expense associated with the net carrying amount of definite-lived
intangible assets is estimated to be as follows (in millions):
Fiscal year 2015 $ 6
Fiscal year 2016 5
Fiscal year 2017 5
Fiscal year 2018 5
Fiscal year 2019 5
Future fiscal years 49
Total $ 75