10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended January 15, 2017; or

o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________.

Commission File Number:  0-19797

WHOLE FOODS MARKET, INC.

(Exact name of registrant as specified in its charter)

Texas	74-1989366
(State of	(IRS employer
incorporation)	identification no.)

550 Bowie Street

Austin, Texas 78703

(Address of principal executive offices)

512-477-4455

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

The number of shares of the registrant’s common stock, no par value, outstanding as of February 10, 2017 was 318,564,535 shares.

Whole Foods Market, Inc.

Form 10-Q

Table of Contents

	Page
Part I. Financial Information
Item 1. Financial Statements.
Consolidated Balance Sheets (unaudited), January 15, 2017 and September 25, 2016	1
Consolidated Statements of Operations (unaudited), for the sixteen weeks ended January 15, 2017 and January 17, 2016	2
Consolidated Statements of Comprehensive Income (unaudited), for the sixteen weeks ended January 15, 2017 and January 17, 2016	3
Consolidated Statements of Shareholders’ Equity (unaudited), for the sixteen weeks ended January 15, 2017 and fiscal year ended September 25, 2016	4
Consolidated Statements of Cash Flows (unaudited), for the sixteen weeks ended January 15, 2017 and January 17, 2016	5
Notes to Consolidated Financial Statements (unaudited)	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	19
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	28
Item 4. Controls and Procedures.	28
Part II. Other Information
Item 1. Legal Proceedings.	29
Item 1A. Risk Factors.	29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	29
Item 6. Exhibits.	30
Signature	31

Part I. Financial Information

Item 1. Financial Statements.

Whole Foods Market, Inc.

Consolidated Balance Sheets (unaudited)

(In millions)

Assets	January 15, 2017			September 25, 2016
Current assets:
Cash and cash equivalents	$	350		$	351
Short-term investments - available-for-sale securities	374			379
Restricted cash	125			122
Accounts receivable	251			242
Merchandise inventories	554			517
Prepaid expenses and other current assets	123			167
Deferred income taxes	210			197
Total current assets	1,987			1,975
Property and equipment, net of accumulated depreciation and amortization	3,460			3,442
Goodwill	710			710
Intangible assets, net of accumulated amortization	72			74
Deferred income taxes	111			100
Other assets	42			40
Total assets	$	6,382		$	6,341
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	3		$	3
Accounts payable	288			307
Accrued payroll, bonus and other benefits due team members	421			407
Dividends payable	45			43
Other current liabilities	543			581
Total current liabilities	1,300			1,341
Long-term debt and capital lease obligations, less current installments	1,048			1,048
Deferred lease liabilities	653			640
Other long-term liabilities	89			88
Total liabilities	3,090			3,117
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value, 1,200 shares authorized; 377.0 shares issued; 318.5 and 318.3 shares outstanding at 2017 and 2016, respectively	2,944			2,933
Common stock in treasury, at cost, 58.5 and 58.7 shares at 2017 and 2016, respectively	(2,018		)	(2,026		)
Accumulated other comprehensive loss	(33		)	(32		)
Retained earnings	2,399			2,349
Total shareholders’ equity	3,292			3,224
Total liabilities and shareholders’ equity	$	6,382		$	6,341

The accompanying notes are an integral part of these consolidated financial statements.

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Whole Foods Market, Inc.

Consolidated Statements of Operations (unaudited)

(In millions, except per share amounts)

	Sixteen weeks ended
	January 15, 2017			January 17, 2016
Sales	$	4,918		$	4,829
Cost of goods sold and occupancy costs	3,268			3,188
Gross profit	1,650			1,641
Selling, general and administrative expenses	1,417			1,373
Pre-opening expenses	21			13
Relocation, store closure and lease termination costs	41			3
Operating income	171			252
Interest expense	(15		)	(7		)
Investment and other income	—			4
Income before income taxes	156			249
Provision for income taxes	61			92
Net income	$	95		$	157
Basic earnings per share	$	0.30		$	0.47
Weighted average shares outstanding	318.2			337.0
Diluted earnings per share	$	0.30		$	0.46
Weighted average shares outstanding, diluted basis	318.7			338.2
Dividends declared per common share	$	0.140		$	0.135

The accompanying notes are an integral part of these consolidated financial statements.

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Whole Foods Market, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)

	Sixteen weeks ended
	January 15, 2017			January 17, 2016
Net income	$	95		$	157
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(1		)	(10		)
Other comprehensive loss, net of tax	(1		)	(10		)
Comprehensive income	$	94		$	147

The accompanying notes are an integral part of these consolidated financial statements.

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Whole Foods Market, Inc.

Consolidated Statementsof Shareholders’ Equity(unaudited)

Sixteen weeks endedJanuary 15, 2017 and fiscal year ended September 25, 2016

(In millions)

	Shares outstanding		Common stock			Common stock in treasury			Accumulated other comprehensive loss			Retained earnings			Total shareholders’ equity
Balances at September 27, 2015	348.9		$	2,904		$	(1,124	)	$	(28	)	$	2,017		$	3,769
Net income	—		—			—			—			507			507
Other comprehensive loss, net of tax	—		—			—			(4		)	—			(4		)
Dividends ($0.54 per common share)	—		—			—			—			(174		)	(174		)
Issuance of common stock pursuant to team member stock plans	1.1		(23		)	42			—			—			19
Purchase of treasury stock	(31.7	)	—			(944		)	—			—			(944		)
Tax benefit related to exercise of team member stock options	—		3			—			—			—			3
Share-based payment expense	—		49			—			—			—			49
Other	—		—			—			—			(1		)	(1		)
Balances at September 25, 2016	318.3		2,933			(2,026		)	(32		)	2,349			3,224
Net income	—		—			—			—			95			95
Other comprehensive loss, net of tax	—		—			—			(1		)	—			(1		)
Dividends ($0.14 per common share)	—		—			—			—			(45		)	(45		)
Issuance of common stock pursuant to team member stock plans	0.2		(3		)	8			—			—			5
Share-based payment expense	—		14			—			—			—			14
Balances at January 15, 2017	318.5		$	2,944		$	(2,018	)	$	(33	)	$	2,399		$	3,292

The accompanying notes are an integral part of these consolidated financial statements.

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Whole Foods Market, Inc.

Consolidated Statementsof Cash Flows (unaudited)

(In millions)

	Sixteen weeks ended
	January 15, 2017			January 17, 2016
Cash flows from operating activities
Net income	$	95		$	157
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	189			147
Share-based payment expense	14			16
LIFO expense	—			2
Deferred income tax expense	(24		)	(30		)
Excess tax benefit related to exercise of team member stock options	—			(1		)
Accretion of premium/discount on marketable securities	—			1
Deferred lease liabilities	18			8
Other	4			2
Net change in current assets and liabilities:
Accounts receivable	(9		)	6
Merchandise inventories	(37		)	(67		)
Prepaid expenses and other current assets	44			(7		)
Accounts payable	(19		)	(16		)
Accrued payroll, bonus and other benefits due team members	14			(25		)
Other current liabilities	(6		)	28
Net change in other long-term liabilities	1			11
Net cash provided by operating activities	284			232
Cash flows from investing activities
Development costs of new locations	(150		)	(91		)
Other property and equipment expenditures	(95		)	(88		)
Purchases of available-for-sale securities	(200		)	(133		)
Sales and maturities of available-for-sale securities	205			220
Payment for purchase of acquired entities, net of cash acquired	—			(11		)
Other investing activities	(4		)	(6		)
Net cash used in investing activities	(244		)	(109		)
Cash flows from financing activities
Purchases of treasury stock	—			(634		)
Common stock dividends paid	(43		)	(45		)
Issuance of common stock	5			7
Excess tax benefit related to exercise of team member stock options	—			1
Proceeds from long-term borrowings	—			999
Proceeds from revolving line of credit	—			300
Payments on long-term debt and capital lease obligations	—			(302		)
Other financing activities	—			(7		)
Net cash provided by (used in) financing activities	(38		)	319
Effect of exchange rate changes on cash and cash equivalents	—			(1		)
Net change in cash, cash equivalents, and restricted cash	2			441
Cash, cash equivalents, and restricted cash at beginning of period	473			364
Cash, cash equivalents, and restricted cash at end of period	$	475		$	805
Supplemental disclosure of cash flow information:
Federal and state income taxes paid	$	76		$	137
Interest paid	$	26		$	—

The accompanying notes are an integral part of these consolidated financial statements.

5

Whole Foods Market, Inc.

Notes to Consolidated Financial Statements (unaudited)

January 15, 2017

(1) Basis of Presentation

The accompanying unaudited consolidated financial statements of Whole Foods Market, Inc. and its consolidated subsidiaries (collectively “Whole Foods Market,” “Company,” or “we”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2016. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation. Where appropriate, we have reclassified prior year financial statements to conform to current year presentation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal years 2017 and 2016 are 52-week years. The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets.

The following is a summary of percentage sales by geographic area for the periods indicated:

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Sales:
United States	97.1	%	97.1	%
Canada and United Kingdom	2.9		2.9
Total sales	100.0	%	100.0	%

The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated:

	January 15, 2017		September 25, 2016
Long-lived assets, net:
United States	97.5	%	97.5	%
Canada and United Kingdom	2.5		2.5
Total long-lived assets, net	100.0	%	100.0	%

(2) Summary of Significant Accounting Policies

Recent Accounting Pronouncements

Effective September 26, 2016, the Company early adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows: Restricted Cash ,” which amends the Accounting Standards Codification Topic 230. The amendments, which require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash, were adopted on a retrospective basis. The adoption of these amendments did not have a significant effect on the Company’s financial statements.

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The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted. Early adoption is permitted for all updates unless stated.

Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2017-04 Simplifying the Test for Goodwill Impairment (Topic 350)	The amendments eliminate Step 2 from the goodwill impairment test. Instead, an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss should also be considered, if applicable. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 27, 2020	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments(Topic 326)	The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic.	First quarter of fiscal year ending September 29, 2021	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (Topic 718)	The amendments aim to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, and certain classifications on the statement of cash flows. The amendments should be applied on either a prospective, retrospective, or modified-retrospective basis depending on the subtopic.	First quarter of fiscal year ending September 30, 2018	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606)	The amendments, which do not change the core principle of the guidance in Topic 606, clarify the implementation guidance on principal versus agent considerations, including how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-07 Simplifying the Transition to the Equity Method of Accounting (Topic 323)	The amendments eliminate the requirement to retroactively apply the equity method of accounting when an investment qualifies for the use of the equity method due to an increase in the level of ownership interest or degree of influence. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.

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Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2016-04 Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force) (Subtopic 405-20)	The amendments require entities to recognize liabilities related to the sale of prepaid stored-value products redeemable for goods, services or cash as financial liabilities in the scope of ASC 405. Additionally, the new guidance amends ASC 405-20 to include a narrow scope exception requiring entities to recognize breakage for these liabilities in a way that is consistent with how gift card breakage will be recognized under the new revenue recognition standard. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-02 Leases (Topic 842)	The amendments require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. Accounting guidance for lessors is largely unchanged. The amendments should be applied on a modified retrospective basis.	First quarter of fiscal year ending September 27, 2020	The adoption of this ASU will result in a significant increase to the Company’s Consolidated Balance Sheets for lease liabilities and right-of-use assets, and the Company is currently evaluating the other effects of adoption of this ASU on its Consolidated Financial Statements.
ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)	The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet in year of adoption. Early adoption is permitted for only certain amendments of the update.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2015-17 Balance Sheet Classification of Deferred Taxes (Topic 740)	The amendments simplify the presentation of deferred income taxes by requiring that all deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. The amendments may be applied on either a prospective or retrospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2015-11 Simplifying the Measurement of Inventory (Topic 330)	The amendments, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606)	The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the timing, method, and impact that the adoption of these provisions will have on the Company’s consolidated financial statements.

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(3) Fair Value Measurements

The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities that are valued using a series of multi-dimensional relational models and series of matrices with standard inputs obtained from readily available pricing sources and other observable market data, such as benchmark yields and base spread. Equity interests measured at fair value are based on quoted prices for similar assets in active markets.

The carrying amounts of accrued payroll, bonuses and other benefits due team members, and other accrued expenses approximate fair value because of their short maturities. Store closure reserves and estimated workers’ compensation claims are recorded at net present value to approximate fair value.

Assets Measured at Fair Value on a Recurring Basis

The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels indicated (in millions):

January 15, 2017	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	23	$	—	$	—	$	23
Marketable securities - available-for-sale:
Municipal bonds	—		31		—		31
Variable-rate demand notes	—		343		—		343
Total	$	23	$	374	$	—	$	397

September 25, 2016	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	62	$	—	$	—	$	62
Commercial paper	—		30		—		30
Municipal bonds	—		46		—		46
Marketable securities - available-for-sale:
Commercial paper	—		30		—		30
Municipal bonds	—		26		—		26
Variable rate demand notes	—		323		—		323
Total	$	62	$	455	$	—	$	517

The estimated fair value of the Company’s long-term debt is included in Note 8 “Long-Term Debt.”

Assets Measured at Fair Value on a Nonrecurring Basis

During the sixteen weeks ended January 15, 2017, the Company recorded fair value adjustments, based on hierarchy level 3 inputs, totaling approximately $34 million related to certain locations for which asset value exceeded expected future cash flows, which were primarily included in the “Relocation, store closure and lease termination cost” line item on the Consolidated Statement of Operations. These impairment charges reduced the carrying value of related long-term assets to an immaterial fair value.

(4) Investments

The Company holds investments primarily in marketable securities that are classified as short-term available-for-sale securities. The Company held the following investments at fair value as of the dates indicated (in millions):

	January 15, 2017		September 25, 2016
Short-term marketable securities - available-for-sale:
Commercial paper	$	—	$	30
Municipal bonds	31		26
Variable rate demand notes	343		323
Total short-term marketable securities	$	374	$	379

Gross unrealized holding gains and losses were not material at January 15, 2017 or September 25, 2016. There were no available-for-sale securities in an unrealized loss position at January 15, 2017. Available-for-sale securities totaling approximately $33 million were in unrealized loss positions at September 25, 2016. The aggregate value of available-for-sale securities in a continuous unrealized loss position for greater than 12 months was not material at September 25, 2016. The Company did not

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recognize any other-than-temporary impairments during the sixteen weeks ended January 15, 2017 or fiscal year ended September 25, 2016. The average effective maturity of the Company’s short-term available-for-sale securities was less than one month at January 15, 2017 and September 25, 2016.

At January 15, 2017 and September 25, 2016, the Company held approximately $23 million and $19 million in equity interests which were accounted for using the cost method of accounting. Equity interests accounted for using the equity method were not material at January 15, 2017 or September 25, 2016.

(5) Goodwill and Other Intangible Assets

There were no additions or adjustments to goodwill during the sixteen weeks ended January 15, 2017 or January 17, 2016. Additions of other intangible assets were not material during the sixteen weeks ended January 15, 2017 or the same period of the prior fiscal year. The components of intangible assets as of the dates indicated were as follows (in millions):

	January 15, 2017					September 25, 2016
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Definite-lived contract-based	$	120	$	(57	)	$	120	$	(55	)
Indefinite-lived contract-based	9					9
Total	$	129	$	(57	)	$	129	$	(55	)

Amortization expense associated with intangible assets was not material during the sixteen weeks ended January 15, 2017 or the same period of the prior fiscal year. Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions):

Remainder of fiscal year 2017	$	4
Fiscal year 2018	5
Fiscal year 2019	5
Fiscal year 2020	5
Fiscal year 2021	4
Future fiscal years	40
Total	$	63

(6) Store and Facility Closures

During the sixteen weeks ended January 15, 2017, the Company announced plans to close nine stores and three commissary kitchens. The Company recorded non-cash charges of approximately $34 million to adjust the long-lived assets of these locations to fair value. These charges are included in the “Relocation, store closure and lease termination cost” line item on the Consolidated Statement of Operations. The Company expects to incur additional charges of approximately $30 million related to these closures in the second quarter of fiscal year 2017 largely relating to lease terminations.

(7) Reserves for Closed Properties

The following table provides a summary of activity in reserves for closed properties during the sixteen weeks ended January 15, 2017 and fiscal year ended September 25, 2016 (in millions):

	January 15, 2017			September 25, 2016
Beginning balance	$	26		$	28
Additions	1			6
Usage	(2		)	(10		)
Adjustments	1			2
Ending balance	$	26		$	26

(8) Long-Term Debt

Credit Agreement

The Company’s revolving credit facility under a credit agreement dated as of November 2, 2015 (the “Credit Agreement”) provides for an unsecured revolving credit facility in the aggregate principal amount of $500 million, which may be increased from time to time by up to $250 million. The Credit Agreement also provides for a letter of credit subfacility of up to $250 million.

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At January 15, 2017, the Company had no amounts outstanding under the credit facility. Commitment fees paid on undrawn amounts were not material during the sixteen weeks ended January 15, 2017. At January 15, 2017, the Company was in compliance with all applicable debt covenants.

During the sixteen weeks ended January 17, 2016, the Company borrowed and repaid $300 million under the Credit Agreement.

Senior Notes

The Company has outstanding $1.0 billion of senior notes (the “Notes”). The Notes bear interest at a fixed rate equal to 5.2% per year, payable semiannually, and mature on December 3, 2025. The effective interest rate of the Notes, which includes interest on the Notes and amortization of discount and issuance costs, is approximately 5.28%. At January 15, 2017, the Company was in compliance with all applicable debt covenants. The estimated fair value of the Notes at January 15, 2017, based on observable market prices (Level 2), exceeded the carrying value by approximately $70 million.

The Senior Notes issued on December 3, 2015 and Credit Agreement are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by certain wholly owned domestic subsidiaries of the Company (the “Guarantors”). For additional information regarding the Guarantors see Note 14, Guarantor Financial Statement Information. The components of long-term debt as of the dates indicated were as follows (in millions):

	January 15, 2017			September 25, 2016
5.2% senior notes due 2025	$	1,000		$	1,000
Less: unamortized discount and debt issuance costs related to senior notes	(7		)	(7		)
Carrying value of senior notes	993			993
Capital lease obligations	58			58
Total long-term debt and capital lease obligations	1,051			1,051
Less: current installments	(3		)	(3		)
Total long-term debt and capital lease obligations, less current installments	$	1,048		$	1,048

(9) Income Taxes

Income taxes resulted in an effective tax rate of approximately 39.0% for the sixteen weeks ended January 15, 2017 compared to approximately 37.0% for the same period of the prior fiscal year. The lower effective tax rate for the sixteen weeks ended January 17, 2016 is due to the recognition of an environmental tax credit related to the development of a new store.

(10) Shareholders’ Equity

Dividends per Common Share

The following table provides a summary of dividends declared per common share during fiscal year 2017 to date and fiscal year 2016 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2017:
November 2, 2016(1)	$	0.14	January 13, 2017	January 24, 2017	$	45
Fiscal year 2016:
November 4, 2015	$	0.135	January 15, 2016	January 26, 2016	$	44
March 9, 2016	0.135		April 8, 2016	April 19, 2016	44
June 7, 2016	0.135		July 1, 2016	July 12, 2016	43
September 22, 2016	0.135		October 3, 2016	October 14, 2016	43

⁽¹⁾ Dividend accrued at January 15, 2017

Treasury Stock

As of January 15, 2017, one share repurchase program remains in effect, with prior programs having been fully utilized, expired or cancelled. The following table outlines the share repurchase program authorized by the Company’s Board of Directors (“Board”), and the related repurchase activity as of January 15, 2017 (in millions):

Effective date	Expiration date	Amount authorized		Cost of repurchases		Authorization available
November 4, 2015	Not applicable	$	1,000	$	557	$	443

11

Share repurchase activity for the sixteen weeks ended January 15, 2017 was immaterial. Share repurchase activity for the sixteen weeks ended January 17, 2016 was as follows (in millions, except per share amounts):

	January 17, 2016
Number of common shares acquired	21.2
Average price per common share acquired	$	29.96
Total cost of common shares acquired	$	634

The Company reissued approximately 0.2 million treasury shares at cost of approximately $8 million and approximately 0.3 million treasury shares at cost of approximately $11 million to satisfy the issuance of common stock pursuant to team member stock plans during the sixteen weeks ended January 15, 2017 and January 17, 2016, respectively. At January 15, 2017 and September 25, 2016, the Company held in treasury approximately 58.5 million shares and 58.7 million shares, respectively, totaling approximately $2.0 billion.

(11) Earnings per Share

The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period. The computation of diluted earnings per share includes the dilutive effect of common stock equivalents consisting of incremental common shares deemed outstanding from the assumed exercise of stock options and the dilutive effect of restricted stock awards. A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts):

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Net income (numerator for basic and diluted earnings per share)	$	95	$	157
Weighted average common shares outstanding (denominator for basic earnings per share)	318.2		337.0
Incremental common shares attributable to dilutive effect of share-based awards	0.5		1.2
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	318.7		338.2
Basic earnings per share	$	0.30	$	0.47
Diluted earnings per share	$	0.30	$	0.46

The computation of diluted earnings per share for the sixteen weeks ended January 15, 2017 and January 17, 2016 does not include share-based awards to purchase approximately 24.5 million shares and 18.7 million shares of common stock, respectively, due to their antidilutive effect.

(12) Share-Based Payments

Share-based payment expense, primarily included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations, totaled approximately $14 million during the sixteen weeks ended January 15, 2017, and totaled approximately $16 million for the same period of the prior fiscal year.

At January 15, 2017 and September 25, 2016, approximately 30.3 million shares and 29.8 millionshares of the Company’s common stock, respectively, were available for future stock incentive grants. At January 15, 2017 and September 25, 2016, there was approximately $61 million and $73 million of unrecognized share-based payment expense, respectively, related to unvested stock options, net of estimated forfeitures, related to approximately 10.3 million shares and 10.5 million shares, respectively. The Company anticipates this expense to be recognized over a weighted average period of 2.7 years.

(13) Commitments and Contingencies

The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters in a manner that we believe best serves the interests of our stakeholders. From time to time we are a

12

party to legal proceedings including matters involving shareholder claims, personnel and employment issues, personal injury, product liability, protecting our intellectual property, regulatory practices, acquisitions and other proceedings arising in the ordinary course of business. These matters have not resulted in any material losses to date. Certain litigation cases have been certified as class or collective actions and may seek substantial damages.

Our primary contingencies are associated with insurance and self-insurance obligations and litigation matters. Additionally, the Company has retention agreements with certain members of Company management which provide for payments under certain circumstances including change of control. Estimation of our insurance and self-insurance liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing and estimating the outcomes of these matters involve substantial uncertainties.

The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated, and is not currently a party to any legal proceeding that management believes could have a material adverse effect on our results of operations. Insurance and legal settlement liabilities are included in the “Other current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities.

(14) Guarantor Financial Statement Information

The Senior Notes issued on December 3, 2015 and Credit Agreement are fully and unconditionally guaranteed, jointly and severally, on an unsecured, unsubordinated basis by certain wholly owned domestic subsidiaries of the Company (the “Guarantors”). Supplemental condensed consolidating financial information of the Company, including such information for the Guarantors is presented below:

13

Consolidated Balance Sheets (unaudited)

(In millions)

	January 15, 2017
Assets	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Current assets:
Cash and cash equivalents	$	—	$	252	$	98	$	—		$	350
Short-term investments - available-for-sale securities	—		374		—		—			374
Restricted cash	—		118		7		—			125
Accounts receivable	—		229		22		—			251
Intercompany receivable	—		695		—		(695		)	—
Merchandise inventories	—		467		87		—			554
Prepaid expenses and other current assets	—		106		17		—			123
Deferred income taxes	—		210		—		—			210
Total current assets	—		2,451		231		(695		)	1,987
Property and equipment, net of accumulated depreciation and amortization	—		3,075		385		—			3,460
Investments in consolidated subsidiaries	4,695		105		474		(5,274		)	—
Goodwill	—		703		7		—			710
Intangible assets, net of accumulated amortization	1		62		9		—			72
Deferred income taxes	—		105		6		—			111
Other assets	—		15		27		—			42
Total assets	$	4,696	$	6,516	$	1,139	$	(5,969	)	$	6,382
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	—	$	3	$	—	$	—		$	3
Accounts payable	—		209		79		—			288
Intercompany payable	360		—		335		(695		)	—
Accrued payroll, bonus and other benefits due team members	—		395		26		—			421
Dividends payable	45		—		—		—			45
Other current liabilities	6		500		37		—			543
Total current liabilities	411		1,107		477		(695		)	1,300
Long-term debt and capital lease obligations, less current installments	993		48		7		—			1,048
Deferred lease liabilities	—		603		50		—			653
Other long-term liabilities	—		88		1		—			89
Total liabilities	1,404		1,846		535		(695		)	3,090
Commitments and contingencies
Total shareholders’ equity	3,292		4,670		604		(5,274		)	3,292
Total liabilities and shareholders’ equity	$	4,696	$	6,516	$	1,139	$	(5,969	)	$	6,382

14

Consolidated Balance Sheets (unaudited)

(In millions)

	September 25, 2016
Assets	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Current assets:
Cash and cash equivalents	$	—	$	254	$	97	$	—		$	351
Short-term investments - available-for-sale securities	—		379		—		—			379
Restricted cash	—		114		8		—			122
Accounts receivable	—		216		26		—			242
Intercompany receivable	—		649		—		(649		)	—
Merchandise inventories	—		441		76		—			517
Prepaid expenses and other current assets	—		150		17		—			167
Deferred income taxes	—		197		—		—			197
Total current assets	—		2,400		224		(649		)	1,975
Property and equipment, net of accumulated depreciation and amortization	—		3,063		379		—			3,442
Investments in consolidated subsidiaries	4,593		103		472		(5,168		)	—
Goodwill	—		702		8		—			710
Intangible assets, net of accumulated amortization	1		63		10		—			74
Deferred income taxes	—		94		6		—			100
Other assets	—		16		24		—			40
Total assets	$	4,594	$	6,441	$	1,123	$	(5,817	)	$	6,341
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	—	$	3	$	—	$	—		$	3
Accounts payable	—		227		80		—			307
Intercompany payable	317		—		333		(650		)	—
Accrued payroll, bonus and other benefits due team members	—		381		26		—			407
Dividends payable	43		—		—		—			43
Other current liabilities	17		536		28		—			581
Total current liabilities	377		1,147		467		(650		)	1,341
Long-term debt and capital lease obligations, less current installments	993		48		7		—			1,048
Deferred lease liabilities	—		592		48		—			640
Other long-term liabilities	—		87		1		—			88
Total liabilities	1,370		1,874		523		(650		)	3,117
Commitments and contingencies
Total shareholders’ equity	3,224		4,567		600		(5,167		)	3,224
Total liabilities and shareholders’ equity	$	4,594	$	6,441	$	1,123	$	(5,817	)	$	6,341

15

Consolidated Statements of Operations (unaudited)

(In millions)

	Sixteen weeks ended January 15, 2017
	Parent/Issuer			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Sales	$	—		$	4,672	$	314		$	(68	)	$	4,918
Cost of goods sold and occupancy costs	—			3,110		224			(66		)	3,268
Gross profit	—			1,562		90			(2		)	1,650
Selling, general and administrative expenses	—			1,337		80			—			1,417
Pre-opening expenses	—			18		3			—			21
Relocation, store closure and lease termination costs	—			40		1			—			41
Operating income	—			167		6			(2		)	171
Interest expense	(15		)	—		—			—			(15		)
Investment and other expense	—			—		(1		)	1			—
Equity in net income of subsidiaries	104			2		1			(107		)	—
Income before income taxes	89			169		6			(108		)	156
Provision for income taxes	(6		)	65		2			—			61
Net income	$	95		$	104	$	4		$	(108	)	$	95

	Sixteen weeks ended January 17, 2016
	Parent/Issuer			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Sales	$	—		$	4,584	$	289		$	(44	)	$	4,829
Cost of goods sold and occupancy costs	—			3,029		202			(43		)	3,188
Gross profit	—			1,555		87			(1		)	1,641
Selling, general and administrative expenses	—			1,294		79			—			1,373
Pre-opening expenses	—			10		3			—			13
Relocation, store closure and lease termination costs	—			3		—			—			3
Operating income	—			248		5			(1		)	252
Interest expense	(7		)	—		—			—			(7		)
Investment and other income (expense)	—			5		(2		)	1			4
Equity in net income of subsidiaries	161			3		6			(170		)	—
Income before income taxes	154			256		9			(170		)	249
Provision for income taxes	(3		)	93		2			—			92
Net income	$	157		$	163	$	7		$	(170	)	$	157

16

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)

	Sixteen weeks ended January 15, 2017
	Parent/Issuer		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Net income	$	95	$	104		$	4	$	(108	)	$	95
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—		(4		)	3		—			(1		)
Other comprehensive income (loss), net of tax	—		(4		)	3		—			(1		)
Comprehensive income	$	95	$	100		$	7	$	(108	)	$	94

	Sixteen weeks ended January 17, 2016
	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net income	$	157	$	163	$	7		$	(170	)	$	157
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—		4		(14		)	—			(10		)
Other comprehensive income (loss), net of tax	—		4		(14		)	—			(10		)
Comprehensive income (loss)	$	157	$	167	$	(7	)	$	(170	)	$	147

17

Condensed Consolidated Statements of Cash Flows (unaudited)

(In millions)

	January 15, 2017
	Parent/Issuer			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net cash provided by (used in) operating activities	$	(26	)	$	293		$	17		$	—		$	284
Cash flows from investing activities
Purchases of property, plant and equipment	—			(226		)	(19		)	—			(245		)
Purchases of available-for-sale securities	—			(200		)	—			—			(200		)
Sales and maturities of available-for-sale securities	—			205			—			—			205
Payment for purchase of acquired entities, net of cash acquired	—			—			—			—			—
Intercompany activity	64			—			—			(64		)	—
Other investing activities	—			(4		)	—			—			(4		)
Net cash provided by (used in) investing activities	64			(225		)	(19		)	(64		)	(244		)
Cash flows from financing activities
Purchases of treasury stock	—			—			—			—			—
Common stock dividends paid	(43		)	—			—			—			(43		)
Issuance of common stock	5			—			—			—			5
Excess tax benefit related to exercise of team member stock options	—			—			—			—			—
Proceeds from long-term borrowings	—			—			—			—			—
Proceed for revolving line of credit	—			—			—			—			—
Payments on long-term debt and capital lease obligations	—			—			—			—			—
Intercompany activity	—			(66		)	2			64			—
Other financing activities	—			—			—			—			—
Net cash provided by (used in) financing activities	(38		)	(66		)	2			64			(38		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—
Net change in cash, cash equivalents, and restricted cash	—			2			—			—			2
Cash, cash equivalents, and restricted cash at beginning of period	—			368			105			—			473
Cash, cash equivalents, and restricted cash at end of period	$	—		$	370		$	105		$	—		$	475

18

Condensed Consolidated Statements of Cash Flows (unaudited)

(In millions)

	January 17, 2016
	Parent/Issuer			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net cash provided by operating activities	$	—		$	219		$	13		$	—		$	232
Cash flows from investing activities
Purchases of property, plant and equipment	—			(156		)	(23		)	—			(179		)
Purchases of available-for-sale securities	—			(133		)	—			—			(133		)
Sales and maturities of available-for-sale securities	—			220			—			—			220
Payment for purchase of acquired entities, net of cash acquired	—			—			(11		)	—			(11		)
Intercompany activity	(319		)	—			—			319			—
Other investing activities	—			(6		)	—			—			(6		)
Net cash used in investing activities	(319		)	(75		)	(34		)	319			(109		)
Cash flows from financing activities
Purchases of treasury stock	(634		)	—			—			—			(634		)
Common stock dividends paid	(45		)	—			—			—			(45		)
Issuance of common stock	7			—			—			—			7
Excess tax benefit related to exercise of team member stock options	1			—			—			—			1
Proceeds from long-term borrowings	999			—			—			—			999
Proceeds from revolving line of credit	300			—			—			—			300
Payments on long-term debt and capital lease obligations	(302		)	—			—			—			(302		)
Intercompany activity	—			305			14			(319		)	—
Other financing activities	(7		)	—			—			—			(7		)
Net cash provided by financing activities	319			305			14			(319		)	319
Effect of exchange rate changes on cash and cash equivalents	—			—			(1		)	—			(1		)
Net change in cash, cash equivalents, and restricted cash	—			449			(8		)	—			441
Cash, cash equivalents, and restricted cash at beginning of period	—			261			103			—			364
Cash, cash equivalents, and restricted cash at end of period	$	—		$	710		$	95		$	—		$	805

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Disclaimer on Forward-looking Statements

Certain statements in this report and from time to time in other filings with the Securities and Exchange Commission, news releases, reports, and other written and oral communications made by us and our representatives, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by words such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “see,” “continue,” “could,” “can,” “may,” “will,” “likely,” “depend,” “should,” “would,” “plan,” “predict,” “target,” and similar expressions, and include references to assumptions and relate to our future prospects, developments and business strategies. Except for the historical information contained herein, the matters discussed in this analysis are forward-looking statements that involve risks and uncertainties that may cause our actual results to be materially different from such forward-looking statements and could materially adversely affect our business, financial condition, operating results and cash flows. These risks and uncertainties include general business conditions, changes in overall economic conditions that impact consumer spending, the impact of competition and other factors which are often beyond the control of the Company, as well other risks listed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2016 and risks and uncertainties not presently known to us or that we currently deem immaterial. We wish to caution you that you should not place undue reliance on such forward-looking statements, which speak only as of the date on which they were made. We do not undertake any obligation to update forward-looking statements.

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This information should be read in conjunction with the consolidated financial statements and the accompanying notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2016.

Overview

Whole Foods Market is the leading natural and organic foods supermarket, the first national “Certified Organic” grocer, and uniquely positioned as America’s Healthiest Grocery Store™. We are a mission-driven company that aims to set the standards of excellence in food retailing. Our success is measured by customer satisfaction, team member happiness and excellence, return on invested capital, active environmental stewardship, service in our local and global communities, and win-win supplier partnerships, among other things. 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. The Company incorporated in 1978, opened the first Whole Foods Market store in 1980, and as of January 15, 2017, operated 467 stores: 446 stores in 42 U.S. states and the District of Columbia; 12 stores in Canada; and 9 stores in the United Kingdom. We have one operating segment, natural and organic foods supermarkets.

Our continued growth depends on our ability to increase sales in our comparable stores and open new stores. Our growth strategy includes opening new stores in existing and new areas and operating those stores successfully. The Company’s average weekly sales and gross profit as a percentage of sales are typically highest in the second and third fiscal quarters, and lowest in the fourth fiscal quarter due to seasonally slower sales during the summer months. Gross profit as a percentage of sales is typically lower in the first fiscal quarter due to the product mix of holiday sales.

Sales of a store are deemed to be comparable commencing in the fifty-seventh full week after the store was opened or acquired. The calculation of comparable store sales excludes sales from relocated and remodeled stores with square footage changes greater than 20% to reduce the impact of square footage changes on the comparison. Stores closed for eight or more days are excluded from the comparable store base from the first fiscal week of closure until re-opened for a full fiscal week. Comparable store sales growth is calculated on a same-calendar-week to same-calendar-week constant currency basis. Companies define comparable store sales differently; thus growth rates across companies may not be comparable.

The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. Fiscal years 2017 and 2016 are 52-week years.

Economic and Industry Factors

Food retailing is a large, intensely competitive industry and is evolving at an incredibly fast pace. Consumers have more options than ever before. Our competition includes but is not limited to local, regional, national and international conventional and specialty supermarkets, natural foods stores, warehouse membership clubs, online retailers, smaller specialty stores, farmers’ markets, restaurants and home delivery, and meal solution companies, each of which competes with us on the basis of store ambiance and experience, product selection and quality, customer service, price, convenience or a combination of these factors.

We offer the broadest selection of high-quality natural and organic products, with a strong emphasis on perishable foods. We believe our high quality standards differentiate our stores from other supermarkets and enable us to attract and maintain a broad base of loyal customers. Our groundbreaking quality standards ban hundreds of ingredients commonly found in products sold by other retailers, as well as products grown or produced by manufacturing, farming, fishing and ranching practices that don’t measure up.

First Quarter of Fiscal Year 2017 Summary

• Record sales of $4.9 billion, a 1.9% increase over the prior year

• Comparable store sales decrease of 2.4%

• Net income of $95 million, or 1.9% of sales

• Diluted earnings per share of $0.30

• EBITDA of $360 million, or 7.3% of sales

• Return on Invested Capital (“ROIC”) of 11.0%

Results include a non-cash charge of $34 million, or $0.06 per diluted share, related to store and facility closures and a charge of $13 million, or $0.03 per diluted share, associated with Mr. Robb’s separation agreement. Excluding these charges, net income was $123 million, or 2.5% of sales; diluted earnings per share were $0.39; EBITDA margin was 7.6%; and ROIC was 11.7%. Please refer to the reconciliation of GAAP measures to non-GAAP measures included in this Management’s Discussion and Analysis. During the sixteen weeks ended January 15, 2017, we produced approximately $284 million in cash flows from

20

operations and returned approximately $43 million in quarterly dividends to common shareholders. At January 15, 2017, we had approximately $1.1 billion in total debt and approximately $1.2 billion in total available capital.

Fiscal Year 2017 Updated Outlook

The Company is updating its outlook primarily to reflect lower expected sales growth and new costs associated with accelerating the implementation of category management. In the first quarter of fiscal year 2017, the Company incurred a charge of approximately $47 million, or $0.09 per diluted share, related to Mr. Robb’s separation agreement as well as store and facility closures. In the second quarter of fiscal year 2017, the Company expects to incur an additional charge related to these closures of approximately $30 million, or $0.06 per diluted share. The Company’s outlook excludes these charges and potential share repurchases. The Company remains focused on the metrics it believes are key to the long-term health of its business and for fiscal year 2017 is targeting:

• Sales growth of 1.5% of greater

• Comps of approximately -2.5% or better

• Ending square footage growth of approximately 5% net of closures, reflecting approximately 30 new stores, including up to six relocations and three 365 stores

• Diluted EPS of $1.33 or greater

• EBITDA margin of approximately 8%

• Capital expenditures of approximately 4% of sales

• ROIC of approximately 11%

The Company has updated its sales outlook primarily to reflect year-to-date sales trends and lost sales related to the store closures. While the Company remains hopeful that comps improve as sales-building initiatives gain traction and comparisons get easier, the competitive landscape continues to be very dynamic, two-year comps have continued to moderate, and it is uncertain how long the deflationary environment will continue.

The Company plans to reduce its cost structure this fiscal year but expects these savings to be more than offset by investments in marketing, value and technology, as well as higher occupancy, depreciation and other costs. In addition, the Company is estimating additional costs of approximately $14 million, or $0.03 per diluted share, related to its recent decision to accelerate the implementation of category management, the majority of which it expects to incur in the fourth quarter. Therefore, the Company now expects a decline in operating margin of up to approximately 85 basis points for the year, with greater declines of up to 115 basis points in the second and fourth quarters due in part to the negative Easter shift and higher year-over-year marketing expense in the second quarter, and to costs associated with category management in the fourth quarter. The Company also notes a LIFO credit of $9 million in the fourth quarter last year as compared to charges of $2 million in the first and second quarters and a credit of $2 million in the third quarter last year.

Results of Operations

The following table sets forth the Company’s consolidated statements of operations data expressed as a percentage of sales:

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Sales	100.0	%	100.0	%
Cost of goods sold and occupancy costs	66.4		66.0
Gross profit	33.6		34.0
Selling, general and administrative expenses	28.8		28.4
Pre-opening expenses	0.4		0.3
Relocation, store closure and lease termination costs	0.8		0.1
Operating income	3.5		5.2
Interest expense	(0.3	)	(0.1	)
Investment and other income	—		0.1
Income before income taxes	3.2		5.2
Provision for income taxes	1.2		1.9
Net income	1.9	%	3.2	%

Figures may not sum due to rounding

21

Sales for the sixteen weeks ended January 15, 2017 totaled approximately $4.9 billion, increasing 1.9% over the same period of the prior fiscal year. Comparable store sales during the sixteen weeks ended January 15, 2017 and the same period of the prior fiscal year are reflected in the table below.

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Comparable store sales	(2.4	)%	(1.8	)%
Change in transactions	(3.9	)%	(1.6	)%
Change in basket size	1.5	%	(0.2	)%

We have seen stability in our comps over the last three quarters, with some modest traffic improvement from the fourth quarter of fiscal year 2016 to the first quarter of fiscal year 2017. During the quarter, we saw wide swings in comps on a weekly basis, as is frequently the case in the first quarter due to weather and holiday shifts. After a strong start for the first five weeks, comps dropped off sharply in the pre- and post-election weeks, and then showed nice lifts over Thanksgiving and Christmas weeks. Comparable stores contributed approximately 95.1% of total sales for the sixteen weeks ended January 15, 2017, compared to approximately 93.7% for the same period of the prior fiscal year. As of January 15, 2017, there were 434 locations in the comparable store base compared to 404 locations at January 17, 2016.

The Company’s gross profit as a percentage of sales for the sixteen weeks ended January 15, 2017 was approximately 33.6% compared to approximately 34.0% for the same period of the prior fiscal year. Gross margin for the sixteen weeks ended January 15, 2017 declined 43 basis points to 33.6%, as compared to the sixteen weeks ended January 17, 2016, driven by increases in occupancy costs and cost of goods sold as a percentage of sales.

Selling, general and administrative expenses as a percentage of sales were approximately 28.8% for the sixteen weeks ended January 15, 2017 compared to approximately 28.4% for the same period of the prior fiscal year. During the sixteen weeks ended January 15, 2017, selling, general and administrative expenses included a charge of $13 million associated with the separation

agreement for Walter Robb, our former Co-Chief Executive Officer. Excluding this charge, selling, general and administrative expenses increased 12 basis points year over year for the sixteen weeks ended January 15, 2017 driven by an increase in marketing and depreciation expenses as a percentage of sales.

Pre-opening expenses totaled approximately $21 million for the sixteen weeks ended January 15, 2017 compared to approximately $13 million for the same period of the prior fiscal year.

Relocation, store closure and lease termination costs totaled approximately $41 million for the sixteen weeks ended January 15, 2017 compared to approximately $3 million for the same period of the prior fiscal year. Relocation, store closure and lease termination costs for the sixteen weeks ended January 15, 2017 includes approximately $34 million in charges related to the decision to close nine stores and three commissary kitchens.

The numbers of stores opened and relocated were as follows:

	Sixteen weeks ended
	January 15, 2017	January 17, 2016
New stores	11	3
Relocated stores	2	—

Interest expense, primarily related to the Company’s $1.0 billion offering of 5.2% senior notes completed on December 3, 2015, totaled approximately $15 million and $7 million for the sixteen weeks ended January 15, 2017 and January 17, 2016, respectively.

Investment and other income, which includes gift card breakage, interest income and investment gains and losses, and other income, was not material for the sixteen weeks ended January 15, 2017 compared to approximately $4 million for the sixteen weeks ended January 17, 2015.

Income taxes resulted in an effective tax rate of approximately 39.0% for the sixteen weeks ended January 15, 2017 compared to approximately 37.0% for the same period of the prior fiscal year. The lower effective tax rate for fiscal year 2016 was due to the recognition of an environmental tax credit related to the development of a new store. The effective tax rate for fiscal year 2017 is expected to be 39.0%.

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Non-GAAP measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides information regarding adjusted diluted Earnings per Share (“EPS”), Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), adjusted EBITDA, Return on Invested Capital (“ROIC”) and adjusted ROIC as additional information about its operating results. These measures are not in accordance with, or an alternative to, GAAP. We believe that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to our results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of incentive compensation. Management believes ROIC and adjusted ROIC are useful to investors and analysts because each measures how effectively we are deploying our assets.

The Company defines adjusted diluted EPS as net income plus charges for store and facility closures and Mr. Robb’s separation agreement divided by the weighted average shares outstanding and potential additional common shares outstanding. The following is a tabular reconciliation of the non-GAAP financial measures adjusted diluted EPS to GAAP diluted EPS, which the Company believes is the most directly comparable GAAP financial measure. Adjusted diluted EPS was as follows (in millions):

	Sixteen weeks ended
Adjusted Diluted EPS	January 15, 2017		January 17, 2016
Net income	$	95	$	157
Store and facility closures, net of tax	20		—
Mr. Robb's separation agreement, net of tax	8		—
Adjusted Net income	$	123	$	157
Adjusted Diluted Earnings per Share	$	0.39	$	0.46
Weighted average shares outstanding	318.7		337.0

The Company defines adjusted EBITDA as EBITDA plus charges for Mr. Robb’s separation agreement. The following is a tabular reconciliation of the non-GAAP financial measures EBITDA to GAAP net income, which the Company believes is the most directly comparable GAAP financial measure. EBITDA was as follows (in millions):

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Net income	$	95	$	157
Provision for income taxes	61		92
Interest expense	15		7
Investment and other income	—		(4		)
Operating income	171		252
Depreciation and amortization	189		147
EBITDA	360		399
Mr. Robb’s separation agreement	13		—
Adjusted EBITDA	$	373	$	399

23

The Company defines ROIC as ROIC earnings divided by average invested capital. ROIC earnings and adjustments to ROIC earnings are defined in the following tabular reconciliation. Invested capital reflects a trailing four-quarter average. ROIC and adjusted ROIC were as follows (in millions):

	Fifty-two weeks ended
	January 15, 2017			January 17, 2016
Net income	$	445		$	525
Interest expense, net of tax	30			4
ROIC earnings	475			529
Total rent expense, net of tax (1)	289			268
Estimated depreciation on capitalized operating leases, net of tax (2)	(193		)	(178		)
ROIC earnings, including the effect of capitalized operating leases	$	571		$	619
Average working capital, excluding current portion of long-term debt	$	695		$	529
Average property and equipment, net	3,355			3,121
Average other assets	967			1,075
Average other liabilities	(714		)	(651		)
Average invested capital	4,303			4,074
Average estimated asset base of capitalized operating leases (3)	3,816			3,486
Average invested capital, including the effect of capitalized operating leases	$	8,119		$	7,560
ROIC	11.0		%	13.0		%
ROIC, including the effect of capitalized operating leases	7.0		%	8.2		%

	Fifty-two weeks ended
	January 15, 2017			January 17, 2016
Net income	$	445		$	525
Interest expense, net of tax	30			4
Adjustments, net of tax (4)	30			48
Adjusted ROIC earnings	505			577
Total rent expense, net of tax (1)	289			268
Estimated depreciation on capitalized operating leases, net of tax (2)	(193		)	(178		)
Adjusted ROIC earnings, including the effect of capitalized operating leases	$	601		$	667
Average working capital, excluding current portion of long-term debt	$	695		$	529
Average property and equipment, net	3,355			3,121
Average other assets	967			1,075
Average other liabilities	(714		)	(651		)
Average invested capital	4,303			4,074
Average estimated asset base of capitalized operating leases (3)	3,816			3,486
Average invested capital, including the effect of capitalized operating leases	$	8,119		$	7,560
Adjusted ROIC	11.7		%	14.2		%
Adjusted ROIC, including the effect of capitalized operating leases	7.4		%	8.8		%

⁽¹⁾ Total rent includes minimum base rent of all tendered leases

⁽²⁾ Estimated depreciation equals two-thirds of total rent expense

⁽³⁾ Estimated asset base equals eight times total annualized rent expense

⁽⁴⁾ Adjustments include charges related to Mr. Robb’s separation agreement in Q1 2017, store and facility closures and asset impairments

24

Liquidity and Capital Resources and Changes in Financial Condition

The following table summarizes the Company’s cash and short-term investments as of the dates indicated (in millions):

	January 15, 2017		September 25, 2016
Cash and cash equivalents	$	350	$	351
Short-term investments - available-for-sale securities	374		379
Total	$	724	$	730

Additionally, the Company had $500 million available under its revolving credit facility at January 15, 2017.

We generated cash flows from operating activities totaling approximately $284 million during the sixteen weeks ended January 15, 2017 compared to approximately $232 million during the same period of the prior fiscal year. The increase in cash flows from operating activities resulted primarily from increased non-cash expenses and changes in operating working capital. Depreciation and amortization was the primary non-cash expense included in cash flows from operating activities totaling approximately $189 million and $147 million for the sixteen weeks ended January 15, 2017 and January 17, 2016.

Net cash used in investing activities totaled approximately $244 million for the sixteen weeks ended January 15, 2017 compared to approximately $109 million for the same period of the prior fiscal year. Net sales and maturities of available-for-sale securities totaled approximately $5 million during the sixteen weeks ended January 15, 2017 compared to approximately $87 million for the same period of the prior fiscal year. Our principal historical capital requirements have been the funding of the development or acquisition of new stores, the acquisition of property and equipment for existing stores, and technology investments. The required cash investment for new stores varies depending on the size of the new store, geographic location, degree of work performed by the landlord and complexity of site development issues. Capital expenditures for the sixteen weeks ended January 15, 2017 totaled approximately $245 million, of which approximately $150 million was for the development of new locations. Capital expenditures for the sixteen weeks ended January 17, 2016 totaled approximately $179 million, of which approximately $91 million was for the development of new locations. As of January 15, 2017 the Company has 93 stores, or 3.9 million square feet, in development.

We believe we will produce operating cash flows in excess of the capital expenditures needed to open the 93 stores in our current store development pipeline. We have a disciplined, opportunistic real estate strategy, opening stores in existing trade areas as well as new areas, including international locations. Our growth strategy is to expand primarily through new store openings, and while we may pursue acquisitions of smaller chains that provide access to desirable geographic 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 $38 million for the sixteen weeks ended January 15, 2017 compared to approximately $319 million provided by financing activities for the same period of the prior fiscal year.

The Company’s revolving credit facility under a credit agreement dated as of November 2, 2015 (the “Credit Agreement”) provides for an unsecured revolving credit facility in the aggregate principal amount of $500 million. For the sixteen weeks ended January 15, 2017, the Company had no amounts outstanding on the Credit Agreement. During the first quarter of fiscal year 2016, the Company borrowed and repaid $300 million under the Credit Agreement. At January 15, 2017, the Company was in compliance with all applicable debt covenants.

The Company has outstanding $1.0 billion aggregate principal amount of its 5.2% senior notes due 2025 (the “Notes”). The Notes will mature on December 3, 2025. At January 15, 2017, the Company was in compliance with all applicable debt covenants.

25

Share repurchase activity for the sixteen weeks ended January 15, 2017 was immaterial. Share repurchase activity for fiscal year 2016 was as follows (in millions, except share per share amounts):

	Number of common shares acquired (1)	Average price per common share acquired		Total cost of common shares acquired
Fiscal year 2016:
First Quarter	21.2	$	29.96	$	634
Second Quarter	3.5	28.88		100
Third Quarter	6.5	30.01		195
Fourth Quarter	0.5	27.98		15
Total fiscal year 2016	31.7	$	29.82	$	944

⁽¹⁾ Number of shares may not sum due to rounding

As of January 15, 2017, one share repurchase program remains in effect, with prior programs having been fully utilized, expired or cancelled. The following table outlines the share repurchase program authorized by the Company’s Board of Directors (“Board”), and the related repurchase activity as of January 15, 2017 (in millions):

Effective date	Expiration date	Amount authorized		Cost of repurchases		Authorization available
November 4, 2015	Not applicable	$	1,000	$	557	$	443

During the first quarter of fiscal year 2017, the Board increased the Company’s quarterly dividend to $0.140 per common share from $0.135 per common share. The following table provides a summary of dividends declared per common share during fiscal year 2017 to date and fiscal year 2016 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2017:
November 2, 2016 (1)	$	0.140	January 13, 2017	January 24, 2017	$	45
Fiscal year 2016:
November 4, 2015	$	0.135	January 15, 2016	January 26, 2016	$	44
March 9, 2016	0.135		April 8, 2016	April 19, 2016	44
June 7, 2016	0.135		July 1, 2016	July 12, 2016	43
September 22, 2016	0.135		October 3, 2016	October 14, 2016	43

⁽¹⁾ Dividend accrued at January 15, 2017

The Company will pay future dividends at the discretion of the Board. The continuation of these payments, the amount of such dividends, and the form in which dividends are paid (cash or stock) depend on many factors, including the results of operations and the financial condition of the Company. Subject to these qualifications, the Company currently expects to pay dividends on a quarterly basis.

Net proceeds to the Company from the exercise of stock options by team members for the sixteen weeks ended January 15, 2017 totaled approximately $5 million compared to approximately $7 million for the same period of the prior fiscal year. 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 earnings dilution from share-based payment expense will not exceed 10%. The Company believes this strategy is best aligned with its stakeholder philosophy because it limits future earnings dilution from options and at the same time retains the broad-based stock option plan, which the Company believes is important to team member morale, its unique corporate culture and its success. At January 15, 2017 and September 25, 2016, approximately 30.3 million shares and 29.8 million shares of our common stock, respectively, were available for future stock incentive grants.

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In addition to the Company’s debt obligations referenced above, the Company is committed under certain capital leases for rental of certain equipment, buildings and land, and certain operating leases for rental of facilities and equipment. These leases expire or become subject to renewal clauses at various dates through 2054. The following table shows payments due by period on contractual obligations as of January 15, 2017 (in millions):

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Capital lease obligations (including interest)	$	91	$	6	$	10	$	10	$	65
Operating lease obligations (1)	9,223		315		1,070		1,153		6,685
Total	$	9,314	$	321	$	1,080	$	1,163	$	6,750

⁽¹⁾ Amounts exclude taxes, insurance and other related expense

Gross unrecognized tax benefits and related interest and penalties at January 15, 2017 were not material. Although a reasonably reliable estimate of the period of cash settlement with respective taxing authorities cannot be determined due to the high degree of uncertainty regarding the timing of future cash outflows associated with the Company’s unrecognized tax benefits, as of January 15, 2017, the Company does not expect tax audit resolution will reduce its unrecognized tax benefits in the next 12 months.

We periodically make other commitments and become subject to other contractual obligations that we believe to be routine in nature and incidental to the operation of the business. Management believes that such routine commitments and contractual obligations do not have a material impact on our business, financial condition or results of operations.

Our principal historical sources of liquidity have included cash generated by operations, available cash and cash equivalents, and short-term investments. Absent any significant change in market conditions, we expect planned expansion and other anticipated working capital and capital expenditure requirements for the next 12 months will be funded by these sources.

The Company intends to maintain an investment-grade profile and a balance sheet that provides the financial flexibility to pursue its strategic growth initiatives. There can be no assurance, however, that the Company will continue to generate cash flows at or above current levels or that other sources of capital will be available to us in the future.

Off-Balance Sheet Arrangements

Our off-balance sheet arrangements at January 15, 2017 consist of operating leases disclosed in the above contractual obligations table, as well as the Credit Agreement discussed above. Additionally, we enter into forward purchase agreements for certain products in the ordinary course of business. Purchase commitments do not exceed anticipated use within an operating cycle. We have no other off-balance sheet arrangements that have had, or are reasonably likely to have, a material current or future effect on our consolidated financial statements or financial condition.

Recent Accounting Pronouncements

Recent accounting pronouncements are included in Note 2 of the Notes to Consolidated Financial Statements.

27

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Our direct exposure to financial market risk results from fluctuations in foreign currency exchange rates and interest rates. There have been no material changes to our market risks as disclosed in our Annual Report on Form 10-K, for the fiscal year ended September 25, 2016.

Item 4. Controls and Procedures.

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), to allow timely decisions regarding required disclosure. The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

Other than as described above, there have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

28

Part II. Other Information

Item 1. Legal Proceedings.

Information related to the Company’s legal proceedings is discussed in Note 13 of the Notes to Consolidated Financial Statements in Part I of this report.

Item 1A. Risk Factors.

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended September 25, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information about the Company’s share repurchase activity during the sixteen weeks ended January 15, 2017.

Period (1)	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs (2)	Approximate dollar value of shares that may yet be purchased under the plans or programs (2)
September 26, 2016 - October 23, 2016	—	$	—	—	$	443,504,390
October 24, 2016 - November 20, 2016	16,200	27.95		16,200	443,051,523
November 21, 2016 - December 18, 2016	—	—		—	443,051,523
December 19, 2016 - January 15, 2017	—	—			443,051,523
Total	16,200	$	27.95	16,200

⁽¹⁾  Periodic information is presented by reference to our fiscal periods during the first quarter of fiscal year 2017.

⁽²⁾  On November 4, 2015, the Board authorized a share repurchase program whereby the Company may make up to $1.0 billion in stock purchases of outstanding shares of common stock of the Company. The repurchase program does not have an expiration date. Under the share repurchase programs, purchases can be made from time to time using a variety of methods, which may include open market purchases. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. Purchases may be made through a Rule 10b5-1 plan pursuant to pre-determined metrics set forth in such plan. The Board’s authorization of the share repurchase program does not obligate the Company to acquire any particular amount of common stock, and the program may be suspended or discontinued at any time at the Company’s discretion.

29

Item 6. Exhibits.

3.1	Amended and Restated Articles of Incorporation of the Registrant, dated September 15, 2015 (1)
3.2	Amended and Restated Bylaws of the Registrant adopted June 26, 2015 (2)
4.1	Amended and Restated Indenture, dated as of September 8, 2016, between the Registrant and U.S. Bank National Association, as Trustee (3)
4.2	First Supplemental Indenture, dated December 3, 2015, among the Registrant, the Guarantors, and U.S. Bank National Association (4)
4.3	Form of 5.2000% Senior Notes due 2025 (included in Exhibit 4.2) (4)
10.1	Separation, Advisory, and Noncompetition Agreement, dated as of November 2, 2016, by and between Whole Foods Market, Inc. and Walter Robb (5)
10.2	Amendment to the Whole Foods Executive Retention Plan and Non-Compete Arrangement, dated as of November 2, 2016, by and between Whole Foods Market Services, Inc. and Walter Robb (5)
31.1	Certification of Chief Executive Officer Pursuant to 17 CFR 240.13a -14(a) (6)
31.2	Certification of Chief Financial Officer Pursuant to 17 CFR 240.13a - 14(a) (6)
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 (7)
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 (7)
101	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended January 15, 2017 formatted in eXtensible Business Reporting Language: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to Consolidated Financial Statements (5)

(1)	Filed as an exhibit to Registrant’s Form 10-K for the period ended September 27, 2015 filed November 13, 2016 and incorporated herein by reference.
(2)	Filed as an exhibit to Registrant’s Form 8-K filed June 29, 2015 and incorporated herein by reference.
(3)	Filed as an exhibit to Registrant’s Form 8-K filed September 9, 2016 and incorporated herein by reference.
(4)	Filed as an exhibit to Registrant’s Form 8-K filed December 4, 2015 and incorporated herein by reference.
(5)	Filed as an exhibit to Registrant’s Form 8-K filed November 2, 2016 and incorporated herein by reference.
(6)	Filed herewith.
(7)	Furnished herewith.

30

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		WHOLE FOODS MARKET, INC.
Date:	February 16, 2017	By:	/s/ Glenda Flanagan
			Glenda Flanagan
			Executive Vice President and Chief Financial Officer
			(Duly authorized officer and principal financial officer)

31

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, John Mackey, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Whole Foods Market, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 16, 2017

/s/ John Mackey

John Mackey

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Glenda Flanagan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Whole Foods Market, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 16, 2017

/s/ Glenda Flanagan

Glenda Flanagan

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Whole Foods Market, Inc. (the “Company”) for the period ending January 15, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Mackey, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: February 16, 2017

/s/ John Mackey

John Mackey

Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Whole Foods Market, Inc. (the “Company”) for the period ending January 15, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Glenda Flanagan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: February 16, 2017

/s/ Glenda Flanagan

Glenda Flanagan

Chief Financial Officer

XML

Document and Entity - shares	4 Months Ended
	Jan. 15, 2017	Feb. 10, 2017
Document and Entity [Abstract]
Entity Registrant Name	WHOLE FOODS MARKET INC
Entity Central Index Key	0000865436
Document Type	10-Q
Entity Filer Category	Large Accelerated Filer
Current Fiscal Year End Date	--09-24
Document Period End Date	Jan. 15, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		318,564,535

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Consolidated Balance Sheets - USD ($) $ in Millions	Jan. 15, 2017	Sep. 25, 2016
Current assets:
Cash and cash equivalents	$ 350	$ 351
Short-term investments - available-for-sale securities	374	379
Restricted cash	125	122
Accounts receivable	251	242
Merchandise inventories	554	517
Prepaid expenses and other current assets	123	167
Deferred income taxes	210	197
Total current assets	1,987	1,975
Property and equipment, net of accumulated depreciation and amortization	3,460	3,442
Goodwill	710	710
Intangible assets, net of accumulated amortization	72	74
Deferred income taxes	111	100
Other assets	42	40
Total assets	6,382	6,341
Current liabilities:
Current installments of long-term debt and capital lease obligations	3	3
Accounts payable	288	307
Accrued payroll, bonus and other benefits due team members	421	407
Dividends payable	45	43
Other current liabilities	543	581
Total current liabilities	1,300	1,341
Long-term debt and capital lease obligations, less current installments	1,048	1,048
Deferred lease liabilities	653	640
Other long-term liabilities	89	88
Total liabilities	3,090	3,117
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value, 1,200 shares authorized; 377.0 shares issued; 318.5 and 318.3 shares outstanding at 2017 and 2016, respectively	2,944	2,933
Common stock in treasury, at cost, 58.5 and 58.7 shares at 2017 and 2016, respectively	(2,018)	(2,026)
Accumulated other comprehensive loss	(33)	(32)
Retained earnings	2,399	2,349
Total shareholders’ equity	3,292	3,224
Total liabilities and shareholders’ equity	$ 6,382	$ 6,341

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 15, 2017	Sep. 25, 2016
Statement of Financial Position [Abstract]
Common Stock, Shares Authorized	1,200,000,000	1,200,000,000
Common Stock, Shares, Issued	377,000,000	377,000,000
Common Stock, Shares, Outstanding	318,500,000	318,300,000
Common Stock, No Par Value
Treasury Stock, Shares	58,500,000	58,700,000

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Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended			4 Months Ended		12 Months Ended
	Sep. 25, 2016	Jul. 03, 2016	Apr. 10, 2016	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Income Statement [Abstract]
Sales				$ 4,918	$ 4,829
Cost of goods sold and occupancy costs				3,268	3,188
Gross profit				1,650	1,641
Selling, general and administrative expenses				1,417	1,373
Pre-opening expenses				21	13
Relocation, store closure and lease termination costs				41	3
Operating income				171	252
Interest expense				(15)	(7)
Investment and other income					4
Income before income taxes				156	249
Provision for income taxes				61	92
Net income				$ 95	$ 157	$ 507
Basic earnings per share (in dollars per share)				$ 0.30	$ 0.47
Weighted average shares outstanding (in shares)				318.2	337.0
Diluted earnings per share (in dollars per share)				$ 0.30	$ 0.46
Weighted average shares outstanding, diluted basis (in shares)				318.7	338.2
Dividends declared per common share (in dollars per share)	$ 0.135	$ 0.135	$ 0.135	$ 0.14	$ 0.135	$ 0.54

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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	4 Months Ended		12 Months Ended
	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 95	$ 157	$ 507
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(1)	(10)
Other comprehensive loss, net of tax	(1)	(10)	$ (4)
Comprehensive income	$ 94	$ 147

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Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common stock	Common stock in treasury	Accumulated other comprehensive loss	Retained earnings
Balances at Sep. 27, 2015	$ 3,769	$ 2,904	$ (1,124)	$ (28)	$ 2,017
Balances (in shares) at Sep. 27, 2015		348.9
Increase (Decrease) in Shareholders' Equity
Net income	507				507
Other comprehensive income (loss), net of tax	(4)			(4)
Dividends ($0.405 and $0.52 per common share for the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015, respectively)	(174)				(174)
Issuance of common stock pursuant to team member stock plans	19	$ (23)	42
Issuance of common stock pursuant to team member stock plans (in shares)		1.1
Purchase of treasury stock	(944)		(944)
Purchase of treasury stock (in shares)		(31.7)
Tax benefit related to exercise of team member stock options	3	$ 3
Share-based payment expense	49	49
Other	(1)				(1)
Balances at Sep. 25, 2016	$ 3,224	$ 2,933	(2,026)	(32)	2,349
Balances (in shares) at Sep. 25, 2016	318.3	318.3
Increase (Decrease) in Shareholders' Equity
Net income	$ 95				95
Other comprehensive income (loss), net of tax	(1)			(1)
Dividends ($0.405 and $0.52 per common share for the forty weeks ended July 3, 2016 and fiscal year ended September 27, 2015, respectively)	(45)				(45)
Issuance of common stock pursuant to team member stock plans	5	$ (3)	8
Issuance of common stock pursuant to team member stock plans (in shares)		0.2
Share-based payment expense	14	$ 14
Balances at Jan. 15, 2017	$ 3,292	$ 2,944	$ (2,018)	$ (33)	$ 2,399
Balances (in shares) at Jan. 15, 2017	318.5	318.5

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended			4 Months Ended		12 Months Ended
	Sep. 25, 2016	Jul. 03, 2016	Apr. 10, 2016	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.135	$ 0.135	$ 0.135	$ 0.14	$ 0.135	$ 0.54

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016
Cash flows from operating activities
Net income	$ 95	$ 157
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	189	147
Share-based payment expense	14	16
LIFO expense		2
Deferred income tax expense	(24)	(30)
Excess tax benefit related to exercise of team member stock options		(1)
Accretion of premium/discount on marketable securities		1
Deferred lease liabilities	18	8
Other	4	2
Net change in current assets and liabilities:
Accounts receivable	(9)	6
Merchandise inventories	(37)	(67)
Prepaid expenses and other current assets	44	(7)
Accounts payable	(19)	(16)
Accrued payroll, bonus and other benefits due team members	14	(25)
Other current liabilities	(6)	28
Net change in other long-term liabilities	1	11
Net cash provided by operating activities	284	232
Cash flows from investing activities
Development costs of new locations	(150)	(91)
Other property and equipment expenditures	(95)	(88)
Purchases of available-for-sale securities	(200)	(133)
Sales and maturities of available-for-sale securities	205	220
Payment for purchase of acquired entities, net of cash acquired		(11)
Other investing activities	(4)	(6)
Net cash used in investing activities	(244)	(109)
Cash flows from financing activities
Purchases of treasury stock		(634)
Common stock dividends paid	(43)	(45)
Issuance of common stock	5	7
Excess tax benefit related to exercise of team member stock options		1
Proceeds from long-term borrowings		999
Proceeds from revolving line of credit		300
Payments on long-term debt and capital lease obligations		(302)
Other financing activities		(7)
Net cash provided by (used in) financing activities	(38)	319
Effect of exchange rate changes on cash and cash equivalents		(1)
Net change in cash, cash equivalents, and restricted cash	2	441
Cash, cash equivalents, and restricted cash at beginning of period	473	364
Cash, cash equivalents, and restricted cash at end of period	475	805
Supplemental disclosure of cash flow information:
Federal and state income taxes paid	76	$ 137
Interest paid	$ 26

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Basis of Presentation

4 Months Ended

Jan. 15, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Basis of Presentation

The accompanying unaudited consolidated financial statements of Whole Foods Market, Inc. and its consolidated subsidiaries (collectively “Whole Foods Market,” “Company,” or “we”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2016. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation. Where appropriate, we have reclassified prior year financial statements to conform to current year presentation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal years 2017 and 2016 are 52-week years. The Company has one operating segment and a single reportable segment, natural and organic foods supermarkets.

The following is a summary of percentage sales by geographic area for the periods indicated:

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Sales:
United States	97.1	%	97.1	%
Canada and United Kingdom	2.9		2.9
Total sales	100.0	%	100.0	%

The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated:

	January 15, 2017		September 25, 2016
Long-lived assets, net:
United States	97.5	%	97.5	%
Canada and United Kingdom	2.5		2.5
Total long-lived assets, net	100.0	%	100.0	%

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Summary of Significant Accounting Policies

4 Months Ended

Jan. 15, 2017

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Recent Accounting Pronouncements

Effective September 26, 2016, the Company early adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows: Restricted Cash ,” which amends the Accounting Standards Codification Topic 230. The amendments, which require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash, were adopted on a retrospective basis. The adoption of these amendments did not have a significant effect on the Company’s financial statements.

The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted. Early adoption is permitted for all updates unless stated.

Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2017-04 Simplifying the Test for Goodwill Impairment (Topic 350)	The amendments eliminate Step 2 from the goodwill impairment test. Instead, an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss should also be considered, if applicable. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 27, 2020	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments(Topic 326)	The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic.	First quarter of fiscal year ending September 29, 2021	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (Topic 718)	The amendments aim to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, and certain classifications on the statement of cash flows. The amendments should be applied on either a prospective, retrospective, or modified-retrospective basis depending on the subtopic.	First quarter of fiscal year ending September 30, 2018	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606)	The amendments, which do not change the core principle of the guidance in Topic 606, clarify the implementation guidance on principal versus agent considerations, including how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-07 Simplifying the Transition to the Equity Method of Accounting (Topic 323)	The amendments eliminate the requirement to retroactively apply the equity method of accounting when an investment qualifies for the use of the equity method due to an increase in the level of ownership interest or degree of influence. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.

Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2016-04 Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force) (Subtopic 405-20)	The amendments require entities to recognize liabilities related to the sale of prepaid stored-value products redeemable for goods, services or cash as financial liabilities in the scope of ASC 405. Additionally, the new guidance amends ASC 405-20 to include a narrow scope exception requiring entities to recognize breakage for these liabilities in a way that is consistent with how gift card breakage will be recognized under the new revenue recognition standard. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-02 Leases (Topic 842)	The amendments require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. Accounting guidance for lessors is largely unchanged. The amendments should be applied on a modified retrospective basis.	First quarter of fiscal year ending September 27, 2020	The adoption of this ASU will result in a significant increase to the Company’s Consolidated Balance Sheets for lease liabilities and right-of-use assets, and the Company is currently evaluating the other effects of adoption of this ASU on its Consolidated Financial Statements.
ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)	The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet in year of adoption. Early adoption is permitted for only certain amendments of the update.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2015-17 Balance Sheet Classification of Deferred Taxes (Topic 740)	The amendments simplify the presentation of deferred income taxes by requiring that all deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. The amendments may be applied on either a prospective or retrospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2015-11 Simplifying the Measurement of Inventory (Topic 330)	The amendments, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606)	The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the timing, method, and impact that the adoption of these provisions will have on the Company’s consolidated financial statements.

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Fair Value Measurements

4 Months Ended

Jan. 15, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

The Company holds money market fund investments that are classified as cash equivalents that are measured at fair value on a recurring basis based on quoted prices in active markets for identical assets. The Company also holds available-for-sale securities that are valued using a series of multi-dimensional relational models and series of matrices with standard inputs obtained from readily available pricing sources and other observable market data, such as benchmark yields and base spread. Equity interests measured at fair value are based on quoted prices for similar assets in active markets.

The carrying amounts of accrued payroll, bonuses and other benefits due team members, and other accrued expenses approximate fair value because of their short maturities. Store closure reserves and estimated workers’ compensation claims are recorded at net present value to approximate fair value.

Assets Measured at Fair Value on a Recurring Basis

The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels indicated (in millions):

January 15, 2017	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	23	$	—	$	—	$	23
Marketable securities - available-for-sale:
Municipal bonds	—		31		—		31
Variable-rate demand notes	—		343		—		343
Total	$	23	$	374	$	—	$	397

September 25, 2016	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	62	$	—	$	—	$	62
Commercial paper	—		30		—		30
Municipal bonds	—		46		—		46
Marketable securities - available-for-sale:
Commercial paper	—		30		—		30
Municipal bonds	—		26		—		26
Variable rate demand notes	—		323		—		323
Total	$	62	$	455	$	—	$	517

The estimated fair value of the Company’s long-term debt is included in Note 8 “Long-Term Debt.”

Assets Measured at Fair Value on a Nonrecurring Basis

During the sixteen weeks ended January 15, 2017, the Company recorded fair value adjustments, based on hierarchy level 3 inputs, totaling approximately $34 million related to certain locations for which asset value exceeded expected future cash flows, which were primarily included in the “Relocation, store closure and lease termination cost” line item on the Consolidated Statement of Operations. These impairment charges reduced the carrying value of related long-term assets to an immaterial fair value.

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Investments

4 Months Ended

Jan. 15, 2017

Investments [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Investments

The Company holds investments primarily in marketable securities that are classified as short-term available-for-sale securities. The Company held the following investments at fair value as of the dates indicated (in millions):

	January 15, 2017		September 25, 2016
Short-term marketable securities - available-for-sale:
Commercial paper	$	—	$	30
Municipal bonds	31		26
Variable rate demand notes	343		323
Total short-term marketable securities	$	374	$	379

Gross unrealized holding gains and losses were not material at January 15, 2017 or September 25, 2016. There were no available-for-sale securities in an unrealized loss position at January 15, 2017. Available-for-sale securities totaling approximately $33 million were in unrealized loss positions at September 25, 2016. The aggregate value of available-for-sale securities in a continuous unrealized loss position for greater than 12 months was not material at September 25, 2016. The Company did not recognize any other-than-temporary impairments during the sixteen weeks ended January 15, 2017 or fiscal year ended September 25, 2016. The average effective maturity of the Company’s short-term available-for-sale securities was less than one month at January 15, 2017 and September 25, 2016.

At January 15, 2017 and September 25, 2016, the Company held approximately $23 million and $19 million in equity interests which were accounted for using the cost method of accounting. Equity interests accounted for using the equity method were not material at January 15, 2017 or September 25, 2016.

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Goodwill and Other Intangible Assets

4 Months Ended

Jan. 15, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets

There were no additions or adjustments to goodwill during the sixteen weeks ended January 15, 2017 or January 17, 2016. Additions of other intangible assets were not material during the sixteen weeks ended January 15, 2017 or the same period of the prior fiscal year. The components of intangible assets as of the dates indicated were as follows (in millions):

	January 15, 2017					September 25, 2016
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Definite-lived contract-based	$	120	$	(57	)	$	120	$	(55	)
Indefinite-lived contract-based	9					9
Total	$	129	$	(57	)	$	129	$	(55	)

Amortization expense associated with intangible assets was not material during the sixteen weeks ended January 15, 2017 or the same period of the prior fiscal year. Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions):

Remainder of fiscal year 2017	$	4
Fiscal year 2018	5
Fiscal year 2019	5
Fiscal year 2020	5
Fiscal year 2021	4
Future fiscal years	40
Total	$	63

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Store and Facility Closures

4 Months Ended

Jan. 15, 2017

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Store and Facility Closures

During the sixteen weeks ended January 15, 2017, the Company announced plans to close nine stores and three commissary kitchens. The Company recorded non-cash charges of approximately $34 million to adjust the long-lived assets of these locations to fair value. These charges are included in the “Relocation, store closure and lease termination cost” line item on the Consolidated Statement of Operations. The Company expects to incur additional charges of approximately $30 million related to these closures in the second quarter of fiscal year 2017 largely relating to lease terminations.

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Reserves for Closed Properties

4 Months Ended

Jan. 15, 2017

Restructuring and Related Activities [Abstract]

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

Reserves for Closed Properties

The following table provides a summary of activity in reserves for closed properties during the sixteen weeks ended January 15, 2017 and fiscal year ended September 25, 2016 (in millions):

	January 15, 2017			September 25, 2016
Beginning balance	$	26		$	28
Additions	1			6
Usage	(2		)	(10		)
Adjustments	1			2
Ending balance	$	26		$	26

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Long-Term Debt

4 Months Ended

Jan. 15, 2017

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

Long-Term Debt

Credit Agreement

The Company’s revolving credit facility under a credit agreement dated as of November 2, 2015 (the “Credit Agreement”) provides for an unsecured revolving credit facility in the aggregate principal amount of $500 million, which may be increased from time to time by up to $250 million. The Credit Agreement also provides for a letter of credit subfacility of up to $250 million.

At January 15, 2017, the Company had no amounts outstanding under the credit facility. Commitment fees paid on undrawn amounts were not material during the sixteen weeks ended January 15, 2017. At January 15, 2017, the Company was in compliance with all applicable debt covenants.

During the sixteen weeks ended January 17, 2016, the Company borrowed and repaid $300 million under the Credit Agreement.

Senior Notes

The Company has outstanding $1.0 billion of senior notes (the “Notes”). The Notes bear interest at a fixed rate equal to 5.2% per year, payable semiannually, and mature on December 3, 2025. The effective interest rate of the Notes, which includes interest on the Notes and amortization of discount and issuance costs, is approximately 5.28%. At January 15, 2017, the Company was in compliance with all applicable debt covenants. The estimated fair value of the Notes at January 15, 2017, based on observable market prices (Level 2), exceeded the carrying value by approximately $70 million.

The Senior Notes issued on December 3, 2015 and Credit Agreement are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by certain wholly owned domestic subsidiaries of the Company (the “Guarantors”). For additional information regarding the Guarantors see Note 14, Guarantor Financial Statement Information. The components of long-term debt as of the dates indicated were as follows (in millions):

	January 15, 2017			September 25, 2016
5.2% senior notes due 2025	$	1,000		$	1,000
Less: unamortized discount and debt issuance costs related to senior notes	(7		)	(7		)
Carrying value of senior notes	993			993
Capital lease obligations	58			58
Total long-term debt and capital lease obligations	1,051			1,051
Less: current installments	(3		)	(3		)
Total long-term debt and capital lease obligations, less current installments	$	1,048		$	1,048

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Income Taxes

4 Months Ended

Jan. 15, 2017

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

Income taxes resulted in an effective tax rate of approximately 39.0% for the sixteen weeks ended January 15, 2017 compared to approximately 37.0% for the same period of the prior fiscal year. The lower effective tax rate for the sixteen weeks ended January 17, 2016 is due to the recognition of an environmental tax credit related to the development of a new store.

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Shareholders' Equity

4 Months Ended

Jan. 15, 2017

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Shareholders’ Equity

Dividends per Common Share

The following table provides a summary of dividends declared per common share during fiscal year 2017 to date and fiscal year 2016 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2017:
November 2, 2016(1)	$	0.14	January 13, 2017	January 24, 2017	$	45
Fiscal year 2016:
November 4, 2015	$	0.135	January 15, 2016	January 26, 2016	$	44
March 9, 2016	0.135		April 8, 2016	April 19, 2016	44
June 7, 2016	0.135		July 1, 2016	July 12, 2016	43
September 22, 2016	0.135		October 3, 2016	October 14, 2016	43

⁽¹⁾ Dividend accrued at January 15, 2017

Treasury Stock

As of January 15, 2017, one share repurchase program remains in effect, with prior programs having been fully utilized, expired or cancelled. The following table outlines the share repurchase program authorized by the Company’s Board of Directors (“Board”), and the related repurchase activity as of January 15, 2017 (in millions):

Effective date	Expiration date	Amount authorized		Cost of repurchases		Authorization available
November 4, 2015	Not applicable	$	1,000	$	557	$	443

Share repurchase activity for the sixteen weeks ended January 15, 2017 was immaterial. Share repurchase activity for the sixteen weeks ended January 17, 2016 was as follows (in millions, except per share amounts):

	January 17, 2016
Number of common shares acquired	21.2
Average price per common share acquired	$	29.96
Total cost of common shares acquired	$	634

The Company reissued approximately 0.2 million treasury shares at cost of approximately $8 million and approximately 0.3 million treasury shares at cost of approximately $11 million to satisfy the issuance of common stock pursuant to team member stock plans during the sixteen weeks ended January 15, 2017 and January 17, 2016, respectively. At January 15, 2017 and September 25, 2016, the Company held in treasury approximately 58.5 million shares and 58.7 million shares, respectively, totaling approximately $2.0 billion.

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Earnings per Share

4 Months Ended

Jan. 15, 2017

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings per Share

The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period. The computation of diluted earnings per share includes the dilutive effect of common stock equivalents consisting of incremental common shares deemed outstanding from the assumed exercise of stock options and the dilutive effect of restricted stock awards. A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts):

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Net income (numerator for basic and diluted earnings per share)	$	95	$	157
Weighted average common shares outstanding (denominator for basic earnings per share)	318.2		337.0
Incremental common shares attributable to dilutive effect of share-based awards	0.5		1.2
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	318.7		338.2
Basic earnings per share	$	0.30	$	0.47
Diluted earnings per share	$	0.30	$	0.46

The computation of diluted earnings per share for the sixteen weeks ended January 15, 2017 and January 17, 2016 does not include share-based awards to purchase approximately 24.5 million shares and 18.7 million shares of common stock, respectively, due to their antidilutive effect.

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Share-Based Payments

4 Months Ended

Jan. 15, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Share-Based Payments

Share-based payment expense, primarily included in the “Selling, general and administrative expenses” line item on the Consolidated Statements of Operations, totaled approximately $14 million during the sixteen weeks ended January 15, 2017, and totaled approximately $16 million for the same period of the prior fiscal year.

At January 15, 2017 and September 25, 2016, approximately 30.3 million shares and 29.8 millionshares of the Company’s common stock, respectively, were available for future stock incentive grants. At January 15, 2017 and September 25, 2016, there was approximately $61 million and $73 million of unrecognized share-based payment expense, respectively, related to unvested stock options, net of estimated forfeitures, related to approximately 10.3 million shares and 10.5 million shares, respectively. The Company anticipates this expense to be recognized over a weighted average period of 2.7 years.

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Commitments and Contingencies

4 Months Ended

Jan. 15, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters in a manner that we believe best serves the interests of our stakeholders. From time to time we are a party to legal proceedings including matters involving shareholder claims, personnel and employment issues, personal injury, product liability, protecting our intellectual property, regulatory practices, acquisitions and other proceedings arising in the ordinary course of business. These matters have not resulted in any material losses to date. Certain litigation cases have been certified as class or collective actions and may seek substantial damages.

Our primary contingencies are associated with insurance and self-insurance obligations and litigation matters. Additionally, the Company has retention agreements with certain members of Company management which provide for payments under certain circumstances including change of control. Estimation of our insurance and self-insurance liabilities requires significant judgments, and actual claim settlements and associated expenses may differ from our current provisions for loss. We have exposures to loss contingencies arising from pending or threatened litigation for which assessing and estimating the outcomes of these matters involve substantial uncertainties.

The Company evaluates contingencies on an ongoing basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated, and is not currently a party to any legal proceeding that management believes could have a material adverse effect on our results of operations. Insurance and legal settlement liabilities are included in the “Other current liabilities” line item on the Consolidated Balance Sheets. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable liabilities.

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Guarantor Financial Statements

4 Months Ended

Jan. 15, 2017

Guarantor Financial Statements [Abstract]

Guarantor Financial Statements [Text Block]

Guarantor Financial Statement Information

The Senior Notes issued on December 3, 2015 and Credit Agreement are fully and unconditionally guaranteed, jointly and severally, on an unsecured, unsubordinated basis by certain wholly owned domestic subsidiaries of the Company (the “Guarantors”). Supplemental condensed consolidating financial information of the Company, including such information for the Guarantors is presented below:

Consolidated Balance Sheets (unaudited)

(In millions)

	January 15, 2017
Assets	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Current assets:
Cash and cash equivalents	$	—	$	252	$	98	$	—		$	350
Short-term investments - available-for-sale securities	—		374		—		—			374
Restricted cash	—		118		7		—			125
Accounts receivable	—		229		22		—			251
Intercompany receivable	—		695		—		(695		)	—
Merchandise inventories	—		467		87		—			554
Prepaid expenses and other current assets	—		106		17		—			123
Deferred income taxes	—		210		—		—			210
Total current assets	—		2,451		231		(695		)	1,987
Property and equipment, net of accumulated depreciation and amortization	—		3,075		385		—			3,460
Investments in consolidated subsidiaries	4,695		105		474		(5,274		)	—
Goodwill	—		703		7		—			710
Intangible assets, net of accumulated amortization	1		62		9		—			72
Deferred income taxes	—		105		6		—			111
Other assets	—		15		27		—			42
Total assets	$	4,696	$	6,516	$	1,139	$	(5,969	)	$	6,382
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	—	$	3	$	—	$	—		$	3
Accounts payable	—		209		79		—			288
Intercompany payable	360		—		335		(695		)	—
Accrued payroll, bonus and other benefits due team members	—		395		26		—			421
Dividends payable	45		—		—		—			45
Other current liabilities	6		500		37		—			543
Total current liabilities	411		1,107		477		(695		)	1,300
Long-term debt and capital lease obligations, less current installments	993		48		7		—			1,048
Deferred lease liabilities	—		603		50		—			653
Other long-term liabilities	—		88		1		—			89
Total liabilities	1,404		1,846		535		(695		)	3,090
Commitments and contingencies
Total shareholders’ equity	3,292		4,670		604		(5,274		)	3,292
Total liabilities and shareholders’ equity	$	4,696	$	6,516	$	1,139	$	(5,969	)	$	6,382

Consolidated Balance Sheets (unaudited)

(In millions)

	September 25, 2016
Assets	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Current assets:
Cash and cash equivalents	$	—	$	254	$	97	$	—		$	351
Short-term investments - available-for-sale securities	—		379		—		—			379
Restricted cash	—		114		8		—			122
Accounts receivable	—		216		26		—			242
Intercompany receivable	—		649		—		(649		)	—
Merchandise inventories	—		441		76		—			517
Prepaid expenses and other current assets	—		150		17		—			167
Deferred income taxes	—		197		—		—			197
Total current assets	—		2,400		224		(649		)	1,975
Property and equipment, net of accumulated depreciation and amortization	—		3,063		379		—			3,442
Investments in consolidated subsidiaries	4,593		103		472		(5,168		)	—
Goodwill	—		702		8		—			710
Intangible assets, net of accumulated amortization	1		63		10		—			74
Deferred income taxes	—		94		6		—			100
Other assets	—		16		24		—			40
Total assets	$	4,594	$	6,441	$	1,123	$	(5,817	)	$	6,341
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	—	$	3	$	—	$	—		$	3
Accounts payable	—		227		80		—			307
Intercompany payable	317		—		333		(650		)	—
Accrued payroll, bonus and other benefits due team members	—		381		26		—			407
Dividends payable	43		—		—		—			43
Other current liabilities	17		536		28		—			581
Total current liabilities	377		1,147		467		(650		)	1,341
Long-term debt and capital lease obligations, less current installments	993		48		7		—			1,048
Deferred lease liabilities	—		592		48		—			640
Other long-term liabilities	—		87		1		—			88
Total liabilities	1,370		1,874		523		(650		)	3,117
Commitments and contingencies
Total shareholders’ equity	3,224		4,567		600		(5,167		)	3,224
Total liabilities and shareholders’ equity	$	4,594	$	6,441	$	1,123	$	(5,817	)	$	6,341

Consolidated Statements of Operations (unaudited)

(In millions)

	Sixteen weeks ended January 15, 2017
	Parent/Issuer			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Sales	$	—		$	4,672	$	314		$	(68	)	$	4,918
Cost of goods sold and occupancy costs	—			3,110		224			(66		)	3,268
Gross profit	—			1,562		90			(2		)	1,650
Selling, general and administrative expenses	—			1,337		80			—			1,417
Pre-opening expenses	—			18		3			—			21
Relocation, store closure and lease termination costs	—			40		1			—			41
Operating income	—			167		6			(2		)	171
Interest expense	(15		)	—		—			—			(15		)
Investment and other expense	—			—		(1		)	1			—
Equity in net income of subsidiaries	104			2		1			(107		)	—
Income before income taxes	89			169		6			(108		)	156
Provision for income taxes	(6		)	65		2			—			61
Net income	$	95		$	104	$	4		$	(108	)	$	95

	Sixteen weeks ended January 17, 2016
	Parent/Issuer			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Sales	$	—		$	4,584	$	289		$	(44	)	$	4,829
Cost of goods sold and occupancy costs	—			3,029		202			(43		)	3,188
Gross profit	—			1,555		87			(1		)	1,641
Selling, general and administrative expenses	—			1,294		79			—			1,373
Pre-opening expenses	—			10		3			—			13
Relocation, store closure and lease termination costs	—			3		—			—			3
Operating income	—			248		5			(1		)	252
Interest expense	(7		)	—		—			—			(7		)
Investment and other income (expense)	—			5		(2		)	1			4
Equity in net income of subsidiaries	161			3		6			(170		)	—
Income before income taxes	154			256		9			(170		)	249
Provision for income taxes	(3		)	93		2			—			92
Net income	$	157		$	163	$	7		$	(170	)	$	157

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)

	Sixteen weeks ended January 15, 2017
	Parent/Issuer		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Net income	$	95	$	104		$	4	$	(108	)	$	95
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—		(4		)	3		—			(1		)
Other comprehensive income (loss), net of tax	—		(4		)	3		—			(1		)
Comprehensive income	$	95	$	100		$	7	$	(108	)	$	94

	Sixteen weeks ended January 17, 2016
	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net income	$	157	$	163	$	7		$	(170	)	$	157
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—		4		(14		)	—			(10		)
Other comprehensive income (loss), net of tax	—		4		(14		)	—			(10		)
Comprehensive income (loss)	$	157	$	167	$	(7	)	$	(170	)	$	147

Condensed Consolidated Statements of Cash Flows (unaudited)

(In millions)

	January 15, 2017
	Parent/Issuer			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net cash provided by (used in) operating activities	$	(26	)	$	293		$	17		$	—		$	284
Cash flows from investing activities
Purchases of property, plant and equipment	—			(226		)	(19		)	—			(245		)
Purchases of available-for-sale securities	—			(200		)	—			—			(200		)
Sales and maturities of available-for-sale securities	—			205			—			—			205
Payment for purchase of acquired entities, net of cash acquired	—			—			—			—			—
Intercompany activity	64			—			—			(64		)	—
Other investing activities	—			(4		)	—			—			(4		)
Net cash provided by (used in) investing activities	64			(225		)	(19		)	(64		)	(244		)
Cash flows from financing activities
Purchases of treasury stock	—			—			—			—			—
Common stock dividends paid	(43		)	—			—			—			(43		)
Issuance of common stock	5			—			—			—			5
Excess tax benefit related to exercise of team member stock options	—			—			—			—			—
Proceeds from long-term borrowings	—			—			—			—			—
Proceed for revolving line of credit	—			—			—			—			—
Payments on long-term debt and capital lease obligations	—			—			—			—			—
Intercompany activity	—			(66		)	2			64			—
Other financing activities	—			—			—			—			—
Net cash provided by (used in) financing activities	(38		)	(66		)	2			64			(38		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—
Net change in cash, cash equivalents, and restricted cash	—			2			—			—			2
Cash, cash equivalents, and restricted cash at beginning of period	—			368			105			—			473
Cash, cash equivalents, and restricted cash at end of period	$	—		$	370		$	105		$	—		$	475

Condensed Consolidated Statements of Cash Flows (unaudited)

(In millions)

	January 17, 2016
	Parent/Issuer			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net cash provided by operating activities	$	—		$	219		$	13		$	—		$	232
Cash flows from investing activities
Purchases of property, plant and equipment	—			(156		)	(23		)	—			(179		)
Purchases of available-for-sale securities	—			(133		)	—			—			(133		)
Sales and maturities of available-for-sale securities	—			220			—			—			220
Payment for purchase of acquired entities, net of cash acquired	—			—			(11		)	—			(11		)
Intercompany activity	(319		)	—			—			319			—
Other investing activities	—			(6		)	—			—			(6		)
Net cash used in investing activities	(319		)	(75		)	(34		)	319			(109		)
Cash flows from financing activities
Purchases of treasury stock	(634		)	—			—			—			(634		)
Common stock dividends paid	(45		)	—			—			—			(45		)
Issuance of common stock	7			—			—			—			7
Excess tax benefit related to exercise of team member stock options	1			—			—			—			1
Proceeds from long-term borrowings	999			—			—			—			999
Proceeds from revolving line of credit	300			—			—			—			300
Payments on long-term debt and capital lease obligations	(302		)	—			—			—			(302		)
Intercompany activity	—			305			14			(319		)	—
Other financing activities	(7		)	—			—			—			(7		)
Net cash provided by financing activities	319			305			14			(319		)	319
Effect of exchange rate changes on cash and cash equivalents	—			—			(1		)	—			(1		)
Net change in cash, cash equivalents, and restricted cash	—			449			(8		)	—			441
Cash, cash equivalents, and restricted cash at beginning of period	—			261			103			—			364
Cash, cash equivalents, and restricted cash at end of period	$	—		$	710		$	95		$	—		$	805

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Summary of Significant Accounting Policies (Policies)

4 Months Ended

Jan. 15, 2017

Accounting Policies [Abstract]

Fiscal Period, Policy [Policy Text Block]

The Company reports its results of operations on a 52- or 53-week fiscal year ending on the last Sunday in September. The first fiscal quarter is 16 weeks, the second and third quarters each are 12 weeks, and the fourth quarter is 12 or 13 weeks. Fiscal years 2017 and 2016 are 52-week years.

New Accounting Pronouncements, Policy [Policy Text Block]

The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted. Early adoption is permitted for all updates unless stated.

Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2017-04 Simplifying the Test for Goodwill Impairment (Topic 350)	The amendments eliminate Step 2 from the goodwill impairment test. Instead, an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss should also be considered, if applicable. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 27, 2020	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments(Topic 326)	The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic.	First quarter of fiscal year ending September 29, 2021	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (Topic 718)	The amendments aim to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, and certain classifications on the statement of cash flows. The amendments should be applied on either a prospective, retrospective, or modified-retrospective basis depending on the subtopic.	First quarter of fiscal year ending September 30, 2018	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606)	The amendments, which do not change the core principle of the guidance in Topic 606, clarify the implementation guidance on principal versus agent considerations, including how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-07 Simplifying the Transition to the Equity Method of Accounting (Topic 323)	The amendments eliminate the requirement to retroactively apply the equity method of accounting when an investment qualifies for the use of the equity method due to an increase in the level of ownership interest or degree of influence. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.

Standard	Description	Effective Date	Effect on financial statements and other significant matters
ASU No. 2016-04 Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force) (Subtopic 405-20)	The amendments require entities to recognize liabilities related to the sale of prepaid stored-value products redeemable for goods, services or cash as financial liabilities in the scope of ASC 405. Additionally, the new guidance amends ASC 405-20 to include a narrow scope exception requiring entities to recognize breakage for these liabilities in a way that is consistent with how gift card breakage will be recognized under the new revenue recognition standard. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2016-02 Leases (Topic 842)	The amendments require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. Accounting guidance for lessors is largely unchanged. The amendments should be applied on a modified retrospective basis.	First quarter of fiscal year ending September 27, 2020	The adoption of this ASU will result in a significant increase to the Company’s Consolidated Balance Sheets for lease liabilities and right-of-use assets, and the Company is currently evaluating the other effects of adoption of this ASU on its Consolidated Financial Statements.
ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)	The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet in year of adoption. Early adoption is permitted for only certain amendments of the update.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the impact that the adoption of these provisions will have on the Company’s consolidated financial statements.
ASU No. 2015-17 Balance Sheet Classification of Deferred Taxes (Topic 740)	The amendments simplify the presentation of deferred income taxes by requiring that all deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. The amendments may be applied on either a prospective or retrospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2015-11 Simplifying the Measurement of Inventory (Topic 330)	The amendments, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments should be applied on a prospective basis.	First quarter of fiscal year ending September 30, 2018	We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements.
ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606)	The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments may be applied on either a full or modified retrospective basis.	First quarter of fiscal year ending September 29, 2019	We are currently evaluating the timing, method, and impact that the adoption of these provisions will have on the Company’s consolidated financial statements.

Earnings Per Share, Policy [Policy Text Block]

The computation of basic earnings per share is based on the number of weighted average common shares outstanding during the period. The computation of diluted earnings per share includes the dilutive effect of common stock equivalents consisting of incremental common shares deemed outstanding from the assumed exercise of stock options and the dilutive effect of restricted stock awards.

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Basis of Presentation (Tables)

4 Months Ended

Jan. 15, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Entity Wide Information Geographic Area Revenue [Table Text Block]

The following is a summary of percentage sales by geographic area for the periods indicated:

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Sales:
United States	97.1	%	97.1	%
Canada and United Kingdom	2.9		2.9
Total sales	100.0	%	100.0	%

Schedule of Entity Wide Information Geographic Area Long-Lived Assets [Table Text Block]

The following is a summary of the percentage of net long-lived assets by geographic area as of the dates indicated:

	January 15, 2017		September 25, 2016
Long-lived assets, net:
United States	97.5	%	97.5	%
Canada and United Kingdom	2.5		2.5
Total long-lived assets, net	100.0	%	100.0	%

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Fair Value Measurements (Tables)

4 Months Ended

Jan. 15, 2017

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels indicated (in millions):

January 15, 2017	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	23	$	—	$	—	$	23
Marketable securities - available-for-sale:
Municipal bonds	—		31		—		31
Variable-rate demand notes	—		343		—		343
Total	$	23	$	374	$	—	$	397

September 25, 2016	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Cash equivalents:
Money market fund	$	62	$	—	$	—	$	62
Commercial paper	—		30		—		30
Municipal bonds	—		46		—		46
Marketable securities - available-for-sale:
Commercial paper	—		30		—		30
Municipal bonds	—		26		—		26
Variable rate demand notes	—		323		—		323
Total	$	62	$	455	$	—	$	517

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Investments (Tables)

4 Months Ended

Jan. 15, 2017

Investments [Abstract]

Marketable Securities [Table Text Block]

The Company held the following investments at fair value as of the dates indicated (in millions):

	January 15, 2017		September 25, 2016
Short-term marketable securities - available-for-sale:
Commercial paper	$	—	$	30
Municipal bonds	31		26
Variable rate demand notes	343		323
Total short-term marketable securities	$	374	$	379

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Goodwill and Other Intangible Assets (Tables)

4 Months Ended

Jan. 15, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived And Indefinite-Lived Intangible Assets by Major Class [Table Text Block]

The components of intangible assets as of the dates indicated were as follows (in millions):

	January 15, 2017					September 25, 2016
	Gross carrying amount		Accumulated amortization			Gross carrying amount		Accumulated amortization
Definite-lived contract-based	$	120	$	(57	)	$	120	$	(55	)
Indefinite-lived contract-based	9					9
Total	$	129	$	(57	)	$	129	$	(55	)

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Future amortization expense associated with the net carrying amount of definite-lived intangible assets is estimated to be as follows (in millions):

Remainder of fiscal year 2017	$	4
Fiscal year 2018	5
Fiscal year 2019	5
Fiscal year 2020	5
Fiscal year 2021	4
Future fiscal years	40
Total	$	63

XML

Reserves for Closed Properties (Tables)

4 Months Ended

Jan. 15, 2017

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following table provides a summary of activity in reserves for closed properties during the sixteen weeks ended January 15, 2017 and fiscal year ended September 25, 2016 (in millions):

	January 15, 2017			September 25, 2016
Beginning balance	$	26		$	28
Additions	1			6
Usage	(2		)	(10		)
Adjustments	1			2
Ending balance	$	26		$	26

XML

Long-Term Debt (Tables)

4 Months Ended

Jan. 15, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

The components of long-term debt as of the dates indicated were as follows (in millions):

	January 15, 2017			September 25, 2016
5.2% senior notes due 2025	$	1,000		$	1,000
Less: unamortized discount and debt issuance costs related to senior notes	(7		)	(7		)
Carrying value of senior notes	993			993
Capital lease obligations	58			58
Total long-term debt and capital lease obligations	1,051			1,051
Less: current installments	(3		)	(3		)
Total long-term debt and capital lease obligations, less current installments	$	1,048		$	1,048

XML

Shareholders' Equity (Tables)

4 Months Ended

Jan. 15, 2017

Equity [Abstract]

Dividends Declared [Table Text Block]

The following table provides a summary of dividends declared per common share during fiscal year 2017 to date and fiscal year 2016 (in millions, except per share amounts):

Date of declaration	Dividend per common share		Date of record	Date of payment	Total amount
Fiscal year 2017:
November 2, 2016(1)	$	0.14	January 13, 2017	January 24, 2017	$	45
Fiscal year 2016:
November 4, 2015	$	0.135	January 15, 2016	January 26, 2016	$	44
March 9, 2016	0.135		April 8, 2016	April 19, 2016	44
June 7, 2016	0.135		July 1, 2016	July 12, 2016	43
September 22, 2016	0.135		October 3, 2016	October 14, 2016	43

⁽¹⁾ Dividend accrued at January 15, 2017

Schedule of Share Repurchase Programs [Table Text Block]

The following table outlines the share repurchase program authorized by the Company’s Board of Directors (“Board”), and the related repurchase activity as of January 15, 2017 (in millions):

Effective date	Expiration date	Amount authorized		Cost of repurchases		Authorization available
November 4, 2015	Not applicable	$	1,000	$	557	$	443

Schedule of Shares Repurchased [Table Text Block]

Share repurchase activity for the sixteen weeks ended January 15, 2017 was immaterial. Share repurchase activity for the sixteen weeks ended January 17, 2016 was as follows (in millions, except per share amounts):

	January 17, 2016
Number of common shares acquired	21.2
Average price per common share acquired	$	29.96
Total cost of common shares acquired	$	634

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Earnings per Share (Tables)

4 Months Ended

Jan. 15, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in millions, except per share amounts):

	Sixteen weeks ended
	January 15, 2017		January 17, 2016
Net income (numerator for basic and diluted earnings per share)	$	95	$	157
Weighted average common shares outstanding (denominator for basic earnings per share)	318.2		337.0
Incremental common shares attributable to dilutive effect of share-based awards	0.5		1.2
Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share)	318.7		338.2
Basic earnings per share	$	0.30	$	0.47
Diluted earnings per share	$	0.30	$	0.46

XML

Guarantor Financial Statements (Tables)

4 Months Ended

Jan. 15, 2017

Guarantor Financial Statements [Abstract]

Consolidated Statements of Balance Sheets with Guarantor Information [Table Text Block]

Consolidated Balance Sheets (unaudited)

(In millions)

	January 15, 2017
Assets	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Current assets:
Cash and cash equivalents	$	—	$	252	$	98	$	—		$	350
Short-term investments - available-for-sale securities	—		374		—		—			374
Restricted cash	—		118		7		—			125
Accounts receivable	—		229		22		—			251
Intercompany receivable	—		695		—		(695		)	—
Merchandise inventories	—		467		87		—			554
Prepaid expenses and other current assets	—		106		17		—			123
Deferred income taxes	—		210		—		—			210
Total current assets	—		2,451		231		(695		)	1,987
Property and equipment, net of accumulated depreciation and amortization	—		3,075		385		—			3,460
Investments in consolidated subsidiaries	4,695		105		474		(5,274		)	—
Goodwill	—		703		7		—			710
Intangible assets, net of accumulated amortization	1		62		9		—			72
Deferred income taxes	—		105		6		—			111
Other assets	—		15		27		—			42
Total assets	$	4,696	$	6,516	$	1,139	$	(5,969	)	$	6,382
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	—	$	3	$	—	$	—		$	3
Accounts payable	—		209		79		—			288
Intercompany payable	360		—		335		(695		)	—
Accrued payroll, bonus and other benefits due team members	—		395		26		—			421
Dividends payable	45		—		—		—			45
Other current liabilities	6		500		37		—			543
Total current liabilities	411		1,107		477		(695		)	1,300
Long-term debt and capital lease obligations, less current installments	993		48		7		—			1,048
Deferred lease liabilities	—		603		50		—			653
Other long-term liabilities	—		88		1		—			89
Total liabilities	1,404		1,846		535		(695		)	3,090
Commitments and contingencies
Total shareholders’ equity	3,292		4,670		604		(5,274		)	3,292
Total liabilities and shareholders’ equity	$	4,696	$	6,516	$	1,139	$	(5,969	)	$	6,382

Consolidated Balance Sheets (unaudited)

(In millions)

	September 25, 2016
Assets	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Current assets:
Cash and cash equivalents	$	—	$	254	$	97	$	—		$	351
Short-term investments - available-for-sale securities	—		379		—		—			379
Restricted cash	—		114		8		—			122
Accounts receivable	—		216		26		—			242
Intercompany receivable	—		649		—		(649		)	—
Merchandise inventories	—		441		76		—			517
Prepaid expenses and other current assets	—		150		17		—			167
Deferred income taxes	—		197		—		—			197
Total current assets	—		2,400		224		(649		)	1,975
Property and equipment, net of accumulated depreciation and amortization	—		3,063		379		—			3,442
Investments in consolidated subsidiaries	4,593		103		472		(5,168		)	—
Goodwill	—		702		8		—			710
Intangible assets, net of accumulated amortization	1		63		10		—			74
Deferred income taxes	—		94		6		—			100
Other assets	—		16		24		—			40
Total assets	$	4,594	$	6,441	$	1,123	$	(5,817	)	$	6,341
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt and capital lease obligations	$	—	$	3	$	—	$	—		$	3
Accounts payable	—		227		80		—			307
Intercompany payable	317		—		333		(650		)	—
Accrued payroll, bonus and other benefits due team members	—		381		26		—			407
Dividends payable	43		—		—		—			43
Other current liabilities	17		536		28		—			581
Total current liabilities	377		1,147		467		(650		)	1,341
Long-term debt and capital lease obligations, less current installments	993		48		7		—			1,048
Deferred lease liabilities	—		592		48		—			640
Other long-term liabilities	—		87		1		—			88
Total liabilities	1,370		1,874		523		(650		)	3,117
Commitments and contingencies
Total shareholders’ equity	3,224		4,567		600		(5,167		)	3,224
Total liabilities and shareholders’ equity	$	4,594	$	6,441	$	1,123	$	(5,817	)	$	6,341

Consolidated Statements of Operations with Guarantor Information [Table Text Block]

Consolidated Statements of Operations (unaudited)

(In millions)

	Sixteen weeks ended January 15, 2017
	Parent/Issuer			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Sales	$	—		$	4,672	$	314		$	(68	)	$	4,918
Cost of goods sold and occupancy costs	—			3,110		224			(66		)	3,268
Gross profit	—			1,562		90			(2		)	1,650
Selling, general and administrative expenses	—			1,337		80			—			1,417
Pre-opening expenses	—			18		3			—			21
Relocation, store closure and lease termination costs	—			40		1			—			41
Operating income	—			167		6			(2		)	171
Interest expense	(15		)	—		—			—			(15		)
Investment and other expense	—			—		(1		)	1			—
Equity in net income of subsidiaries	104			2		1			(107		)	—
Income before income taxes	89			169		6			(108		)	156
Provision for income taxes	(6		)	65		2			—			61
Net income	$	95		$	104	$	4		$	(108	)	$	95

	Sixteen weeks ended January 17, 2016
	Parent/Issuer			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Sales	$	—		$	4,584	$	289		$	(44	)	$	4,829
Cost of goods sold and occupancy costs	—			3,029		202			(43		)	3,188
Gross profit	—			1,555		87			(1		)	1,641
Selling, general and administrative expenses	—			1,294		79			—			1,373
Pre-opening expenses	—			10		3			—			13
Relocation, store closure and lease termination costs	—			3		—			—			3
Operating income	—			248		5			(1		)	252
Interest expense	(7		)	—		—			—			(7		)
Investment and other income (expense)	—			5		(2		)	1			4
Equity in net income of subsidiaries	161			3		6			(170		)	—
Income before income taxes	154			256		9			(170		)	249
Provision for income taxes	(3		)	93		2			—			92
Net income	$	157		$	163	$	7		$	(170	)	$	157

Consolidated Statements of Comprehensive Income with Guarantor Information [Table Text Block]

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)

	Sixteen weeks ended January 15, 2017
	Parent/Issuer		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Net income	$	95	$	104		$	4	$	(108	)	$	95
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—		(4		)	3		—			(1		)
Other comprehensive income (loss), net of tax	—		(4		)	3		—			(1		)
Comprehensive income	$	95	$	100		$	7	$	(108	)	$	94

	Sixteen weeks ended January 17, 2016
	Parent/Issuer		Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net income	$	157	$	163	$	7		$	(170	)	$	157
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	—		4		(14		)	—			(10		)
Other comprehensive income (loss), net of tax	—		4		(14		)	—			(10		)
Comprehensive income (loss)	$	157	$	167	$	(7	)	$	(170	)	$	147

Condensed Consolidated Statements of Cash Flows with Guarantor Information [Table Text Block]

Condensed Consolidated Statements of Cash Flows (unaudited)

(In millions)

	January 15, 2017
	Parent/Issuer			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net cash provided by (used in) operating activities	$	(26	)	$	293		$	17		$	—		$	284
Cash flows from investing activities
Purchases of property, plant and equipment	—			(226		)	(19		)	—			(245		)
Purchases of available-for-sale securities	—			(200		)	—			—			(200		)
Sales and maturities of available-for-sale securities	—			205			—			—			205
Payment for purchase of acquired entities, net of cash acquired	—			—			—			—			—
Intercompany activity	64			—			—			(64		)	—
Other investing activities	—			(4		)	—			—			(4		)
Net cash provided by (used in) investing activities	64			(225		)	(19		)	(64		)	(244		)
Cash flows from financing activities
Purchases of treasury stock	—			—			—			—			—
Common stock dividends paid	(43		)	—			—			—			(43		)
Issuance of common stock	5			—			—			—			5
Excess tax benefit related to exercise of team member stock options	—			—			—			—			—
Proceeds from long-term borrowings	—			—			—			—			—
Proceed for revolving line of credit	—			—			—			—			—
Payments on long-term debt and capital lease obligations	—			—			—			—			—
Intercompany activity	—			(66		)	2			64			—
Other financing activities	—			—			—			—			—
Net cash provided by (used in) financing activities	(38		)	(66		)	2			64			(38		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—
Net change in cash, cash equivalents, and restricted cash	—			2			—			—			2
Cash, cash equivalents, and restricted cash at beginning of period	—			368			105			—			473
Cash, cash equivalents, and restricted cash at end of period	$	—		$	370		$	105		$	—		$	475

Condensed Consolidated Statements of Cash Flows (unaudited)

(In millions)

	January 17, 2016
	Parent/Issuer			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net cash provided by operating activities	$	—		$	219		$	13		$	—		$	232
Cash flows from investing activities
Purchases of property, plant and equipment	—			(156		)	(23		)	—			(179		)
Purchases of available-for-sale securities	—			(133		)	—			—			(133		)
Sales and maturities of available-for-sale securities	—			220			—			—			220
Payment for purchase of acquired entities, net of cash acquired	—			—			(11		)	—			(11		)
Intercompany activity	(319		)	—			—			319			—
Other investing activities	—			(6		)	—			—			(6		)
Net cash used in investing activities	(319		)	(75		)	(34		)	319			(109		)
Cash flows from financing activities
Purchases of treasury stock	(634		)	—			—			—			(634		)
Common stock dividends paid	(45		)	—			—			—			(45		)
Issuance of common stock	7			—			—			—			7
Excess tax benefit related to exercise of team member stock options	1			—			—			—			1
Proceeds from long-term borrowings	999			—			—			—			999
Proceeds from revolving line of credit	300			—			—			—			300
Payments on long-term debt and capital lease obligations	(302		)	—			—			—			(302		)
Intercompany activity	—			305			14			(319		)	—
Other financing activities	(7		)	—			—			—			(7		)
Net cash provided by financing activities	319			305			14			(319		)	319
Effect of exchange rate changes on cash and cash equivalents	—			—			(1		)	—			(1		)
Net change in cash, cash equivalents, and restricted cash	—			449			(8		)	—			441
Cash, cash equivalents, and restricted cash at beginning of period	—			261			103			—			364
Cash, cash equivalents, and restricted cash at end of period	$	—		$	710		$	95		$	—		$	805

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Basis of Presentation (Percentage Sales by Geographic Area) (Details)	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016
Percentage sales by geographic area
Percentage of Total Sales	100.00%	100.00%
United States [Member]
Percentage sales by geographic area
Percentage of Total Sales	97.10%	97.10%
Canada and United Kingdom [Member]
Percentage sales by geographic area
Percentage of Total Sales	2.90%	2.90%

XML

Basis of Presentation (Percentage of Net Long-Lived Assets by Geographic Area) (Details)	Jan. 15, 2017	Sep. 25, 2016
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	100.00%	100.00%
United States [Member]
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	97.50%	97.50%
Canada and United Kingdom [Member]
Percentage net long-lived assets by geographic area
Percentage of Total Net Long-Lived Assets	2.50%	2.50%

XML

Basis of Presentation (Narrative) (Details) - Segment	4 Months Ended	12 Months Ended
	Jan. 15, 2017	Sep. 25, 2016
Organization Consolidation and Presentation [Line Items]
Number of Operating Segments	1
Number of Reportable Segments	1
Fiscal Year [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	364 days	364 days
Fiscal Year [Member] | Minimum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	364 days
Fiscal Year [Member] | Maximum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	371 days
First Quarter [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	112 days
Second Quarter [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	84 days
Third Quarter [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	84 days
Fourth Quarter [Member] | Minimum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	84 days
Fourth Quarter [Member] | Maximum [Member]
Organization Consolidation and Presentation [Line Items]
Fiscal Period Duration	91 days

XML

Fair Value Measurements (Fair Value Hierarchy) (Details) - Fair value, Measurements, Recurring [Member] - USD ($) $ in Millions	Jan. 15, 2017	Sep. 25, 2016
Assets, Fair Value Disclosure [Abstract]
Total	$ 397	$ 517
Level 1 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Total	23	62
Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Total	374	455
Money Market Funds [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	23	62
Money Market Funds [Member] | Level 1 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure	23	62
Commercial Paper [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure		30
Marketable Securities - Available-for-sale		30
Commercial Paper [Member] | Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure		30
Marketable Securities - Available-for-sale		30
Municipal Notes Bonds [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure		46
Marketable Securities - Available-for-sale	31	26
Municipal Notes Bonds [Member] | Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Cash Equivalents, Fair Value Disclosure		46
Marketable Securities - Available-for-sale	31	26
Variable Rate Demand Obligation [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale	343	323
Variable Rate Demand Obligation [Member] | Level 2 Inputs [Member]
Assets, Fair Value Disclosure [Abstract]
Marketable Securities - Available-for-sale	$ 343	$ 323

XML

Fair Value Measurements Fair Value Measurements (Narrative) (Details) $ in Millions	4 Months Ended
	Jan. 15, 2017 USD ($)
Relocation, Store Closure and Lease Termination Cost [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of Long-Lived Assets, on a Nonrecurring Basis	$ 34

XML

Investments (Investments at Fair Value) (Details) - USD ($) $ in Millions	Jan. 15, 2017	Sep. 25, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	$ 374	$ 379
Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current		30
Municipal Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	31	26
Variable Rate Demand Obligation [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Current	$ 343	$ 323

XML

Investments (Narrative) (Details) - USD ($) $ in Millions	4 Months Ended	12 Months Ended
	Jan. 15, 2017	Sep. 25, 2016
Investments [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 0	$ 33
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 0
Short-term Investments Average Effective Maturity Period (in months), Less Than and Approximately, Respectively	1 month	1 month
Cost Method Investments	$ 23	$ 19

XML

Goodwill and Other Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions	Jan. 15, 2017	Sep. 25, 2016
Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite and Indefinite-Lived Intangible Assets, Gross	$ 129	$ 129
Finite-Lived Intangible Assets, Accumulated Amortization	(57)	(55)
Contract-Based Intangible Assets [Member]
Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	120	120
Finite-Lived Intangible Assets, Accumulated Amortization	(57)	(55)
Contract-Based Intangible Assets [Member]
Finite and Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	$ 9	$ 9

XML

Goodwill and Other Intangible Assets (Future Amortization Expense) (Details) $ in Millions	Jan. 15, 2017 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 4
Finite-Lived Intangible Assets, Amortization Expense, Year Two	5
Finite-Lived Intangible Assets, Amortization Expense, Year Three	5
Finite-Lived Intangible Assets, Amortization Expense, Year Four	5
Finite-Lived Intangible Assets, Amortization Expense, Year Five	4
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	40
Finite-Lived Intangible Assets, Future Amortization Expense	$ 63

XML

Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Additions	$ 0	$ 0
Goodwill, Adjustments	$ 0	$ 0

XML

Store and Facility Closures (Details) - USD ($) $ in Millions	3 Months Ended	4 Months Ended	12 Months Ended
	Apr. 09, 2017	Jan. 15, 2017	Sep. 25, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		$ 1	$ 6
Relocation, Store Closure and Lease Termination Cost [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Restructuring Cost and Reserve [Line Items]
Impairment of Long-Lived Assets, on a Nonrecurring Basis		$ 34
Scenario, Forecast [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 30

XML

Reserves for Closed Properties (Reserves for Closed Properties) (Details) - USD ($) $ in Millions	4 Months Ended	12 Months Ended
	Jan. 15, 2017	Sep. 25, 2016
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 26	$ 28
Additions	1	6
Usage	(2)	(10)
Adjustments	1	2
Ending Balance	$ 26	$ 26

XML

Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions	Jan. 15, 2017	Sep. 25, 2016
Debt Instrument [Line Items]
Total Long-Term Debt and Capital Lease Obligations	$ 1,051	$ 1,051
Less: Current Installments	(3)	(3)
Total Long-Term Debt and Capital Lease Obligations, Less Current Installments	1,048	1,048
Unsecured Debt [Member] | 5.2% Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
5.2% Senior Notes due 2025	1,000	1,000
Less: Unamortized Discount and Debt Issuance Costs Related to Senior Notes	(7)	(7)
Carrying Value of Senior Notes	993	993
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Capital Lease Obligations	$ 58	$ 58

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Long-Term Debt (Credit Agreement) (Narrative) (Details) - USD ($) $ in Millions	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016
Line of Credit Facility [Line Items]
Proceeds from revolving line of credit		$ 300
Repayments of Lines of Credit		$ 300
Long-term Line of Credit	$ 0
Unsecured Debt [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	500
Conditional Additional Borrowing Capacity Under Line of Credit Facility	250
Unsecured Debt [Member] | Letter of Credit [Member]
Line of Credit Facility [Line Items]
Conditional Additional Borrowing Capacity Under Line of Credit Facility	$ 250

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Long-Term Debt (Senior Notes) (Narrative) (Details) - Unsecured Debt [Member] - 5.2% Senior Notes due 2025 [Member] - USD ($) $ in Millions	4 Months Ended
	Jan. 15, 2017	Sep. 25, 2016
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 1,000	$ 1,000
Debt Instrument, Interest Rate, Stated Percentage	5.20%
Debt Instrument, Frequency of Interest Payment	semiannually
Debt Instrument, Maturity Date	Dec. 03, 2025
Debt Instrument, Interest Rate During Period	5.28%
Fair Value, Debt Instrument, Fair Value Exceeded Carrying Value	$ 70

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Income Taxes (Narrative) (Details)	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016
Income Tax Disclosure [Abstract]
Effective Tax Rate, Percent	39.00%	37.00%

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Shareholders' Equity (Dividends Declared per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			4 Months Ended		12 Months Ended
	Sep. 25, 2016	Jul. 03, 2016	Apr. 10, 2016	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Dividends Per Common Share [Abstract]
Dividends Payable, Date Declared	Sep. 22, 2016	Jun. 07, 2016	Mar. 09, 2016	Nov. 02, 2016	Nov. 04, 2015
Dividends declared per common share (in dollars per share)	$ 0.135	$ 0.135	$ 0.135	$ 0.14	$ 0.135	$ 0.54
Dividends Payable, Date of Record	Oct. 03, 2016	Jul. 01, 2016	Apr. 08, 2016	Jan. 13, 2017	Jan. 15, 2016
Dividends Payable, Date to be Paid	Oct. 14, 2016	Jul. 12, 2016	Apr. 19, 2016	Jan. 24, 2017	Jan. 26, 2016
Dividends, Common Stock, Cash	$ 43	$ 43	$ 44	$ 45	$ 44	$ 174

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Shareholders' Equity (Share Repurchase Programs) (Details) - Nov. 4, 2015 Share Repurchase Program [Member]	Jan. 15, 2017 USD ($)
Stock Repurchase Program, Authorized Amount	$ 1,000,000,000
Stock Repurchase Program, Amount Utilized For Repurchases	557,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 443,000,000

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Shareholders' Equity (Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	4 Months Ended	12 Months Ended
	Jan. 17, 2016	Sep. 25, 2016
Equity [Abstract]
Treasury Stock, Shares, Acquired	21.2
Treasury Stock Acquired, Average Cost Per Share	$ 29.96
Treasury Stock, Value, Acquired, Cost Method	$ 634	$ 944

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Shareholders' Equity (Narrative) (Details) - USD ($) shares in Millions, $ in Millions	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Treasury Stock [Abstract]
Treasury Stock Reissued During Period, Shares	0.2	0.3
Treasury Stock Reissued During Period, Value	$ 8	$ 11
Treasury Stock, Shares	58.5		58.7
Treasury Stock, Value	$ 2,018		$ 2,026

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Earnings per Share (Earnings per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	4 Months Ended		12 Months Ended
	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Earnings Per Share [Abstract]
Net Income	$ 95	$ 157	$ 507
Weighted Average Number of Shares Outstanding, Basic	318.2	337.0
Potential common shares outstanding [Abstract]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Awards	0.5	1.2
Weighted Average Number of Shares Outstanding, Diluted	318.7	338.2
Basic earnings per share (in dollars per share)	$ 0.30	$ 0.47
Diluted earnings per share (in dollars per share)	$ 0.30	$ 0.46

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Earnings per Share (Narrative) (Details) - shares shares in Millions	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	24.5	18.7

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Share-Based Payments (Narrative) (Details) - USD ($) shares in Millions, $ in Millions	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Payment Expense	$ 14	$ 16
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	30.3		29.8
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 61		$ 73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares	10.3		10.5
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 8 months

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Consolidated Statements of Balance Sheets with Guarantor Information (Details) - USD ($) $ in Millions	Jan. 15, 2017	Sep. 25, 2016	Sep. 27, 2015
Current assets:
Cash and cash equivalents	$ 350	$ 351
Short-term investments - available-for-sale securities	374	379
Restricted cash	125	122
Accounts receivable	251	242
Merchandise inventories	554	517
Prepaid expenses and other current assets	123	167
Deferred income taxes	210	197
Total current assets	1,987	1,975
Property and equipment, net of accumulated depreciation and amortization	3,460	3,442
Goodwill	710	710
Intangible assets, net of accumulated amortization	72	74
Deferred income taxes	111	100
Other assets	42	40
Total assets	6,382	6,341
Current liabilities:
Current installments of long-term debt and capital lease obligations	3	3
Accounts payable	288	307
Accrued payroll, bonus and other benefits due team members	421	407
Dividends payable	45	43
Other current liabilities	543	581
Total current liabilities	1,300	1,341
Long-term debt and capital lease obligations, less current installments	1,048	1,048
Deferred lease liabilities	653	640
Other long-term liabilities	89	88
Total liabilities	3,090	3,117
Commitments and contingencies
Shareholders’ equity:
Total shareholders’ equity	3,292	3,224	$ 3,769
Total liabilities and shareholders’ equity	6,382	6,341
Parent Company [Member]
Current assets:
Investments in consolidated subsidiaries	4,695	4,593
Intangible assets, net of accumulated amortization	1	1
Total assets	4,696	4,594
Current liabilities:
Intercompany payable	360	317
Accrued payroll, bonus and other benefits due team members
Dividends payable	45	43
Other current liabilities	6	17
Total current liabilities	411	377
Long-term debt and capital lease obligations, less current installments	993	993
Total liabilities	1,404	1,370
Commitments and contingencies
Shareholders’ equity:
Total shareholders’ equity	3,292	3,224
Total liabilities and shareholders’ equity	4,696	4,594
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	252	254
Short-term investments - available-for-sale securities	374	379
Restricted cash	118	114
Accounts receivable	229	216
Intercompany receivable	695	649
Merchandise inventories	467	441
Prepaid expenses and other current assets	106	150
Deferred income taxes	210	197
Total current assets	2,451	2,400
Property and equipment, net of accumulated depreciation and amortization	3,075	3,063
Investments in consolidated subsidiaries	105	103
Goodwill	703	702
Intangible assets, net of accumulated amortization	62	63
Deferred income taxes	105	94
Other assets	15	16
Total assets	6,516	6,441
Current liabilities:
Current installments of long-term debt and capital lease obligations	3	3
Accounts payable	209	227
Accrued payroll, bonus and other benefits due team members	395	381
Other current liabilities	500	536
Total current liabilities	1,107	1,147
Long-term debt and capital lease obligations, less current installments	48	48
Deferred lease liabilities	603	592
Other long-term liabilities	88	87
Total liabilities	1,846	1,874
Commitments and contingencies
Shareholders’ equity:
Total shareholders’ equity	4,670	4,567
Total liabilities and shareholders’ equity	6,516	6,441
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	98	97
Restricted cash	7	8
Accounts receivable	22	26
Merchandise inventories	87	76
Prepaid expenses and other current assets	17	17
Total current assets	231	224
Property and equipment, net of accumulated depreciation and amortization	385	379
Investments in consolidated subsidiaries	474	472
Goodwill	7	8
Intangible assets, net of accumulated amortization	9	10
Deferred income taxes	6	6
Other assets	27	24
Total assets	1,139	1,123
Current liabilities:
Accounts payable	79	80
Intercompany payable	335	333
Accrued payroll, bonus and other benefits due team members	26	26
Other current liabilities	37	28
Total current liabilities	477	467
Long-term debt and capital lease obligations, less current installments	7	7
Deferred lease liabilities	50	48
Other long-term liabilities	1	1
Total liabilities	535	523
Commitments and contingencies
Shareholders’ equity:
Total shareholders’ equity	604	600
Total liabilities and shareholders’ equity	1,139	1,123
Eliminations [Member]
Current assets:
Intercompany receivable	(695)	(649)
Total current assets	(695)	(649)
Investments in consolidated subsidiaries	(5,274)	(5,168)
Total assets	(5,969)	(5,817)
Current liabilities:
Intercompany payable	(695)	(650)
Total current liabilities	(695)	(650)
Total liabilities	(695)	(650)
Commitments and contingencies
Shareholders’ equity:
Total shareholders’ equity	(5,274)	(5,167)
Total liabilities and shareholders’ equity	$ (5,969)	$ (5,817)

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Consolidated Statements of Operations with Guarantor Information (Details) - USD ($) $ in Millions	4 Months Ended		12 Months Ended
	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Income Statement
Sales	$ 4,918	$ 4,829
Cost of goods sold and occupancy costs	3,268	3,188
Gross profit	1,650	1,641
Selling, general and administrative expenses	1,417	1,373
Pre-opening expenses	21	13
Relocation, store closure and lease termination costs	41	3
Operating income	171	252
Interest expense	(15)	(7)
Investment and other income (expense)		4
Income before income taxes	156	249
Provision for income taxes	61	92
Net income	95	157	$ 507
Parent Company [Member]
Income Statement
Interest expense	(15)	(7)
Equity in net income of subsidiaries	104	161
Income before income taxes	89	154
Provision for income taxes	(6)	(3)
Net income	95	157
Guarantor Subsidiaries [Member]
Income Statement
Sales	4,672	4,584
Cost of goods sold and occupancy costs	3,110	3,029
Gross profit	1,562	1,555
Selling, general and administrative expenses	1,337	1,294
Pre-opening expenses	18	10
Relocation, store closure and lease termination costs	40	3
Operating income	167	248
Investment and other income (expense)		5
Equity in net income of subsidiaries	2	3
Income before income taxes	169	256
Provision for income taxes	65	93
Net income	104	163
Non-Guarantor Subsidiaries [Member]
Income Statement
Sales	314	289
Cost of goods sold and occupancy costs	224	202
Gross profit	90	87
Selling, general and administrative expenses	80	79
Pre-opening expenses	3	3
Relocation, store closure and lease termination costs	1
Operating income	6	5
Investment and other income (expense)	(1)	(2)
Equity in net income of subsidiaries	1	6
Income before income taxes	6	9
Provision for income taxes	2	2
Net income	4	7
Eliminations [Member]
Income Statement
Sales	(68)	(44)
Cost of goods sold and occupancy costs	(66)	(43)
Gross profit	(2)	(1)
Operating income	(2)	(1)
Investment and other income (expense)	1	1
Equity in net income of subsidiaries	(107)	(170)
Income before income taxes	(108)	(170)
Net income	$ (108)	$ (170)

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Consolidated Statements of Comprehensive Income with Guarantor Information (Details) - USD ($) $ in Millions	4 Months Ended		12 Months Ended
	Jan. 15, 2017	Jan. 17, 2016	Sep. 25, 2016
Net income	$ 95	$ 157	$ 507
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments	(1)	(10)
Other comprehensive income (loss), net of tax	(1)	(10)	$ (4)
Comprehensive income (loss)	94	147
Parent Company [Member]
Net income	95	157
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Comprehensive income (loss)	95	157
Guarantor Subsidiaries [Member]
Net income	104	163
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments	(4)	4
Other comprehensive income (loss), net of tax	(4)	4
Comprehensive income (loss)	100	167
Non-Guarantor Subsidiaries [Member]
Net income	4	7
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments	3	(14)
Other comprehensive income (loss), net of tax	3	(14)
Comprehensive income (loss)	7	(7)
Eliminations [Member]
Net income	(108)	(170)
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Comprehensive income (loss)	$ (108)	$ (170)

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Condensed Consolidated Statements of Cash Flows with Guarantor Information (Details) - USD ($) $ in Millions	4 Months Ended
	Jan. 15, 2017	Jan. 17, 2016
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash provided by (used in) operating activities	$ 284	$ 232
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchases of property, plant and equipment	(245)	(179)
Purchases of available-for-sale securities	(200)	(133)
Sales and maturities of available-for-sale securities	205	220
Payment for purchase of acquired entities, net of cash acquired		(11)
Other investing activities	(4)	(6)
Net cash provided by (used in) investing activities	(244)	(109)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Purchases of treasury stock		(634)
Common stock dividends paid	(43)	(45)
Issuance of common stock	5	7
Excess tax benefit related to exercise of team member stock options		1
Proceeds from long-term borrowings		999
Proceeds from revolving line of credit		300
Payments on long-term debt and capital lease obligations		(302)
Other financing activities		(7)
Net cash provided by (used in) financing activities	(38)	319
Effect of exchange rate changes on cash and cash equivalents		(1)
Net change in cash, cash equivalents, and restricted cash	2	441
Cash, cash equivalents, and restricted cash at beginning of period	473	364
Cash, cash equivalents, and restricted cash at end of period	475	805
Parent Company [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash provided by (used in) operating activities	(26)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Intercompany activity	64	(319)
Net cash provided by (used in) investing activities	64	(319)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Purchases of treasury stock		(634)
Common stock dividends paid	(43)	(45)
Issuance of common stock	5	7
Excess tax benefit related to exercise of team member stock options		1
Proceeds from long-term borrowings		999
Proceeds from revolving line of credit		300
Payments on long-term debt and capital lease obligations		(302)
Other financing activities		(7)
Net cash provided by (used in) financing activities	(38)	319
Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash provided by (used in) operating activities	293	219
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchases of property, plant and equipment	(226)	(156)
Purchases of available-for-sale securities	(200)	(133)
Sales and maturities of available-for-sale securities	205	220
Other investing activities	(4)	(6)
Net cash provided by (used in) investing activities	(225)	(75)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Intercompany activity	(66)	305
Net cash provided by (used in) financing activities	(66)	305
Net change in cash, cash equivalents, and restricted cash	2	449
Cash, cash equivalents, and restricted cash at beginning of period	368	261
Cash, cash equivalents, and restricted cash at end of period	370	710
Non-Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash provided by (used in) operating activities	17	13
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchases of property, plant and equipment	(19)	(23)
Payment for purchase of acquired entities, net of cash acquired		(11)
Net cash provided by (used in) investing activities	(19)	(34)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Intercompany activity	2	14
Net cash provided by (used in) financing activities	2	14
Effect of exchange rate changes on cash and cash equivalents		(1)
Net change in cash, cash equivalents, and restricted cash		(8)
Cash, cash equivalents, and restricted cash at beginning of period	105	103
Cash, cash equivalents, and restricted cash at end of period	105	95
Eliminations [Member]
Net Cash Provided by (Used in) Investing Activities [Abstract]
Intercompany activity	(64)	319
Net cash provided by (used in) investing activities	(64)	319
Net Cash Provided by (Used in) Financing Activities [Abstract]
Intercompany activity	64	(319)
Net cash provided by (used in) financing activities	$ 64	$ (319)