Examine the excerpt of a footnote from Whole Foods Market, Inc.€™s September 30, 2012, annual report on the shown below.

1. What are Whole Foods Market, Inc.€™s largest two categories of property and equipment as of September 30, 2012? Describe in general terms the types of expenditures included in these categories.
2. What was Whole Foods Market, Inc.€™s gross cost of property and equipment at September 30, 2012? What was the book value of property and equipment on this date? Why is book value less thancost?

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A1 Balances of Major Classes of Property and Equipment Are as Follows (in thousands) 12 months ended Sep. 30 2012 $76,592 2,219,763 24,876 Sep. 30 2011 48,928 4 Land S 76.62958612 24,262 Buildings and leasehold improvements Capitalized real estate leases Fixtures and equipment Construction in progress and equipment not yet in service 1,674,0891,398,778 188 844 3,619,424 53,328 4,048,648 Less accumulated depreciation and amortization 1,855,965)(1622,212)