Whole Foods 2015 Annual Report Download

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2015 Annual Report

Table of contents

  • Page 1
    2015 Annual Report

  • Page 2
    ... to know where things come from. We care what happens to them along the way. We want to trust our sources. We want to have the information to make meaningful choices about what we decide to buy and support. We want people, and animals, and the places our food comes from to be treated fairly. Values...

  • Page 3
    ..., in both transactions and sales • Instacart partnership offering fresh grocery delivery to more U.S. homes than any other food retailer • $ nnouncement of our new  by Whole Foods MarketŒ format • Initial rollout of our new, uniÀed pointofsale system Values Matter Some would say...

  • Page 4
    ... and supply chain management platform, will bring many new capabilities such as perpetual inventory, replenishment, retail space planning and price optimization. 7. We will launch our second growth vehicle, 365 by Whole Foods Market. With eight leases signed to date, we plan to open three stores in...

  • Page 5
    ... of Whole Foods Market 74-1989366 (I.R.S. Employer Identification No.) 78703 (Zip code) 550 Bowie Street, Austin, Texas (Address of principal executive offices) Registrant's telephone number, including area code: 512-477-4455 Securities registered pursuant to section 12(b) of the Act: In closing...

  • Page 6
    ...'s definitive Proxy Statement for the Annual Meeting of the Stockholders to be held March 9, 2016. Whole Foods Market, Inc. Annual Report on Form 10-K For the Fiscal Year Ended September 27, 2015 Table of Contents Page PART I Item 1. Item 1A. Item 1B. Item 2. Item 3. Item 4. Business. Risk Factors...

  • Page 7
    ... uniquely positioned as America's Healthiest Grocery Storeâ„¢. The Company incorporated in 1978, opened the first Whole Foods Market store in 1980, and is based in Austin, Texas. We completed our initial public offering in January 1992, and our common stock trades on the NASDAQ Global Select Market...

  • Page 8
    ... spaces. Whole Foods Market currently purchases produce grown locally on over 1,200 U.S. farms, and in fiscal year 2015, approximately 24% of the produce sold in our stores came from local farms. Through our Local Producer Loan Program we have budgeted up to $25 million to support and promote local...

  • Page 9
    ... places every day. As a second growth vehicle, we expect these stores to complement the Whole Foods Market brand, allowing us to address the value-quality proposition in a new way - through a smaller footprint, curated product selection, convenience and technology - while maintaining the integrity...

  • Page 10
    ... online human resources management system; the launch of a new and robust Whole Foods Market mobile app focusing on shopping utility, recipes and store information/events; a partnership with Apple Pay; and the initial rollout of a new customer platform centered around a unified point-of-sale system...

  • Page 11
    ...in 2013 and served as Global Vice President and Chief Information Officer until July 2015. Prior to that, he spent 12 years at Accenture, where he most recently served as Managing Director and Partner in the company's retail operations practice, leading the retail channels practice for North America...

  • Page 12
    ...those team members into the programs and policies of the Company. We may not be able to adapt our distribution, management information and other operating systems to adequately supply products to new stores at competitive prices so that we can operate the stores in a successful and profitable manner...

  • Page 13
    ... delivery of products to our stores and by impacting our ability to appropriately staff our stores. Our stock price may be volatile and adversely affected by general market factors, including fluctuations in our quarterly results of operations. In fiscal year 2015, the closing market price per share...

  • Page 14
    ... and Issuer Purchases of Equity Securities. Whole Foods Market's common stock is traded on the NASDAQ Global Select Market under the symbol "WFM." The Company is a member of the Standard & Poor's S&P 500 Index and the NASDAQ-100® Index. On September 15, 2015, the Company increased the number of...

  • Page 15
    ... share Consolidated Balance Sheets Data Net working capital Total assets Long-term debt (including current maturities) Shareholders' equity Operating Data Number of stores at end of fiscal year Average store size (gross square footage) Average weekly sales per store Comparable store sales increase...

  • Page 16
    ... for online HR management Introduction of labor scheduling to one of our largest store teams 19 Launch of our new mobile app Pilot of our affinity program Partnering with Instacart to offer fresh grocery delivery Initial rollout of a new, unified point-of-sale system Fiscal Year 2016 Outlook...

  • Page 17
    ..., store closure and lease termination costs totaled approximately $16 million, $11 million and $12 million in fiscal years 2015, 2014 and 2013, respectively. Net cash provided by operating activities Development cost of new locations Other property and equipment expenditures Free cash flow...

  • Page 18
    ...areas and experienced team members, such acquisitions are not expected to significantly impact our future store growth or financial results. Net cash used in financing activities totaled approximately $622 million, $698 million and $517 million in fiscal years 2015, 2014 and 2013 respectively. Share...

  • Page 19
    ... in our stock price, and totaled approximately $66 million, $42 million and $81 million in fiscal years 2015, 2014 and 2013, respectively. The Company intends to keep its broad-based stock option program in place, but also intends to limit the number of shares granted in any one year so that annual...

  • Page 20
    ... determined using management's best estimate based on a discounted cash flow model based on future store operating results using internal projections or based on a review of the future benefit the Company anticipates receiving from the related assets. Additionally for closing locations, the Company...

  • Page 21
    ... Statements and Supplementary Data. Whole Foods Market, Inc. Index to Consolidated Financial Statements Page Report of Independent Registered Public Accounting Firm Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting Consolidated Balance Sheets...

  • Page 22
    ... standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Whole Foods Market, Inc. as of September 27, 2015 and September 28, 2014, and the related consolidated statements of operations, comprehensive income, shareholders' equity and cash flows...

  • Page 23
    Whole Foods Market, Inc. Consolidated Balance Sheets (In millions) Assets Current assets: Cash and cash equivalents Short-term investments - available-for-sale securities Restricted cash Accounts receivable Merchandise inventories Prepaid expenses and other current assets Deferred income taxes Total...

  • Page 24
    ... 28, 2014 and September 29, 2013 (In millions) 2015 536 2014 579 2013 551 (4) (4) 547 Whole Foods Market, Inc. Consolidated Statements of Shareholders' Equity Fiscal years ended September 27, 2015, September 28, 2014 and September 29, 2013 (In millions) Accumulated Common Total other stock in...

  • Page 25
    ... Fiscal years ended September 27, 2015, September 28, 2014 and September 29, 2013 (1) Description of Business Whole Foods Market is the leading natural and organic foods supermarket and is a mission-driven company that aims to set the standards of excellence in food retailing. Through our growth, we...

  • Page 26
    ... determined using management's best estimate based on a discounted cash flow model based on future store operating results using internal projections or based on a review of the future benefit the Company anticipates receiving from the related assets. Additionally for closing locations, the Company...

  • Page 27
    ...and associated asset impairments. Share-Based Payments The Company maintains several share-based incentive plans. We grant both options to purchase common stock and restricted common stock under our Whole Foods Market 2009 Stock Incentive Plan. Options outstanding are governed by the original terms...

  • Page 28
    ...gains and losses associated with our U.K. operations are excluded from the determination of net income since these transactions are considered long-term investments in nature. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are...

  • Page 29
    ... During fiscal year 2015, the Company communicated to certain team members its plan of termination to reduce a number of positions through the first quarter of fiscal year 2016 as part of its ongoing commitment to lower prices for its customers and invest in technology upgrades while improving its...

  • Page 30
    ... Company's total gross unrecognized tax benefits are classified in the "Other long-term liabilities" line item on the Consolidated Balance Sheets and were not material during the last three fiscal years. The Company and its domestic subsidiaries file income tax returns with federal, state and local...

  • Page 31
    ...Operations for the fiscal years indicated (in millions): 2015 2 $ 62 64 (25) 39 $ 2014 2 $ 66 68 (26) 42 $ 2013 2 55 57 (22) 35 Under the share repurchase program, purchases can be made from time to time using a variety of methods, which may include open market purchases. The specific timing, price...

  • Page 32
    ..., pursuant to the Whole Foods Market 2009 Stock Incentive Plan. Fair value of the restricted share issuances on grant date was not material during fiscal year 2015 and totaled approximately $11 million during fiscal year 2014. Share-based payment expense related to restricted shares included in the...

  • Page 33
    ... years 2015 and 2014 were 52-week years with twelve weeks in the fourth quarter. Because the first fiscal quarter is longer than the remaining quarters, it typically represents a larger share of the Company's annual sales from existing stores. Quarter-to-quarter comparisons of results of operations...

  • Page 34
    ... Statement"). The Company has adopted a Code of Business Conduct (the "Code") for all team members and directors pursuant to section 406 of the Sarbanes-Oxley Act. A copy of the Code is publicly available on our Whole Foods Market website at http:// www.wholefoodsmarket.com/sites/default/files/media...

  • Page 35
    ...Officer pursuant to 18 U.S.C. Section 1350 (13) The following financial information from the Company's Annual Report on Form 10-K, for the period ended September 27, 2015, formatted in eXtensible Business Reporting Language: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations...

  • Page 36
    ... duly authorized. WHOLE FOODS MARKET, INC. Date: November 13, 2015 By: /s/ Glenda Flanagan Glenda Flanagan Executive Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf...

  • Page 37
    ... Operations Ken Meyer, Executive Vice President, Operations Jim Sud, Executive Vice President, Growth & Business Development Market Information The common stock of Whole Foods Market is traded on the N $ S '$4 Global Select Market under the symbol WFM. The company's filings with the U.S. Securities...

  • Page 38
    The ÁoZers Ze sell are beautiful in every sense. 2015 Whole Foods Market IP, L.P. All rights reserved. Printed on recycled paper using vegetable inks.