Washington
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91-1325671
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(State or Other Jurisdiction of
Incorporation or Organization)
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(IRS Employer
Identification No.)
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Large accelerated filer
|
x
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Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
Title
|
Shares Outstanding as of April 23, 2014
|
Common Stock, par value $0.001 per share
|
752.8 million
|
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
||
|
|
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Item 1
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||
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||
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||
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||
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||
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Item 2
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Item 3
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Item 4
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PART II. OTHER INFORMATION
|
||
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Item 1
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||
Item 1A
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Item 2
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Item 6
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Index to Exhibits
|
|
Item 1.
|
Financial Statements
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||
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Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
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Mar 31,
2013 |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||||
Company-operated stores
|
$
|
3,068.0
|
|
|
$
|
2,807.7
|
|
|
$
|
6,411.8
|
|
|
$
|
5,797.3
|
|
Licensed stores
|
356.2
|
|
|
322.1
|
|
|
758.0
|
|
|
672.2
|
|
||||
CPG, foodservice and other
|
449.6
|
|
|
419.8
|
|
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943.6
|
|
|
873.2
|
|
||||
Total net revenues
|
3,873.8
|
|
|
3,549.6
|
|
|
8,113.4
|
|
|
7,342.7
|
|
||||
Cost of sales including occupancy costs
|
1,629.2
|
|
|
1,530.4
|
|
|
3,424.2
|
|
|
3,151.1
|
|
||||
Store operating expenses
|
1,134.5
|
|
|
1,038.4
|
|
|
2,309.6
|
|
|
2,127.9
|
|
||||
Other operating expenses
|
110.9
|
|
|
105.8
|
|
|
225.8
|
|
|
231.9
|
|
||||
Depreciation and amortization expenses
|
174.4
|
|
|
153.1
|
|
|
344.1
|
|
|
302.0
|
|
||||
General and administrative expenses
|
240.6
|
|
|
230.3
|
|
|
483.2
|
|
|
462.2
|
|
||||
Litigation charge/(credit)
|
—
|
|
|
—
|
|
|
(20.2
|
)
|
|
—
|
|
||||
Total operating expenses
|
3,289.6
|
|
|
3,058.0
|
|
|
6,766.7
|
|
|
6,275.1
|
|
||||
Income from equity investees
|
59.9
|
|
|
52.5
|
|
|
111.0
|
|
|
107.0
|
|
||||
Operating income
|
644.1
|
|
|
544.1
|
|
|
1,457.7
|
|
|
1,174.6
|
|
||||
Interest income and other, net
|
17.8
|
|
|
50.8
|
|
|
37.6
|
|
|
48.0
|
|
||||
Interest expense
|
(16.7
|
)
|
|
(6.1
|
)
|
|
(31.3
|
)
|
|
(12.7
|
)
|
||||
Earnings before income taxes
|
645.2
|
|
|
588.8
|
|
|
1,464.0
|
|
|
1,209.9
|
|
||||
Income taxes
|
218.3
|
|
|
198.1
|
|
|
496.4
|
|
|
386.8
|
|
||||
Net earnings including noncontrolling interests
|
426.9
|
|
|
390.7
|
|
|
967.6
|
|
|
823.1
|
|
||||
Net earnings/(loss) attributable to noncontrolling interests
|
(0.1
|
)
|
|
0.3
|
|
|
—
|
|
|
0.6
|
|
||||
Net earnings attributable to Starbucks
|
$
|
427.0
|
|
|
$
|
390.4
|
|
|
$
|
967.6
|
|
|
$
|
822.5
|
|
Earnings per share - basic
|
$
|
0.57
|
|
|
$
|
0.52
|
|
|
$
|
1.28
|
|
|
$
|
1.10
|
|
Earnings per share - diluted
|
$
|
0.56
|
|
|
$
|
0.51
|
|
|
$
|
1.26
|
|
|
$
|
1.08
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
755.2
|
|
|
749.1
|
|
|
755.0
|
|
|
747.6
|
|
||||
Diluted
|
764.6
|
|
|
761.3
|
|
|
765.4
|
|
|
761.3
|
|
||||
Cash dividends declared per share
|
$
|
0.26
|
|
|
$
|
0.21
|
|
|
$
|
0.52
|
|
|
$
|
0.42
|
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||
Net earnings including noncontrolling interests
|
$
|
426.9
|
|
|
$
|
390.7
|
|
|
$
|
967.6
|
|
|
$
|
823.1
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
1.1
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
||||
Tax (expense)/benefit
|
(0.4
|
)
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||
Unrealized gains/(losses) on cash flow hedging instruments
|
8.1
|
|
|
(3.8
|
)
|
|
19.9
|
|
|
(20.7
|
)
|
||||
Tax (expense)/benefit
|
(2.1
|
)
|
|
(0.1
|
)
|
|
(6.0
|
)
|
|
0.3
|
|
||||
Unrealized gains/(losses) on net investment hedging instruments
|
(3.9
|
)
|
|
11.7
|
|
|
5.9
|
|
|
26.4
|
|
||||
Tax (expense)/benefit
|
1.4
|
|
|
(4.3
|
)
|
|
(2.2
|
)
|
|
(9.7
|
)
|
||||
Reclassification adjustment for net (gains)/losses realized in net earnings for cash flow hedges and available-for-sale securities
|
(2.2
|
)
|
|
10.3
|
|
|
5.4
|
|
|
16.1
|
|
||||
Tax expense/(benefit)
|
1.0
|
|
|
(0.8
|
)
|
|
0.9
|
|
|
(1.4
|
)
|
||||
Translation adjustment
|
7.7
|
|
|
(35.7
|
)
|
|
(22.7
|
)
|
|
(49.7
|
)
|
||||
Tax (expense)/benefit
|
(15.1
|
)
|
|
(6.5
|
)
|
|
(3.4
|
)
|
|
(1.3
|
)
|
||||
Other comprehensive income/(loss)
|
(4.4
|
)
|
|
(29.2
|
)
|
|
(2.7
|
)
|
|
(40.0
|
)
|
||||
Comprehensive income including noncontrolling interests
|
422.5
|
|
|
361.5
|
|
|
964.9
|
|
|
783.1
|
|
||||
Comprehensive income/(loss) attributable to noncontrolling interests
|
(0.1
|
)
|
|
0.3
|
|
|
—
|
|
|
0.6
|
|
||||
Comprehensive income attributable to Starbucks
|
$
|
422.6
|
|
|
$
|
361.2
|
|
|
$
|
964.9
|
|
|
$
|
782.5
|
|
|
Mar 30,
2014 |
|
Sep 29,
2013 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,190.3
|
|
|
$
|
2,575.7
|
|
Short-term investments
|
299.2
|
|
|
658.1
|
|
||
Accounts receivable, net
|
590.0
|
|
|
561.4
|
|
||
Inventories
|
954.7
|
|
|
1,111.2
|
|
||
Prepaid expenses and other current assets
|
286.1
|
|
|
287.7
|
|
||
Deferred income taxes, net
|
258.7
|
|
|
277.3
|
|
||
Total current assets
|
3,579.0
|
|
|
5,471.4
|
|
||
Long-term investments
|
449.8
|
|
|
58.3
|
|
||
Equity and cost investments
|
512.8
|
|
|
496.5
|
|
||
Property, plant and equipment, net
|
3,278.1
|
|
|
3,200.5
|
|
||
Deferred income taxes, net
|
943.4
|
|
|
967.0
|
|
||
Other assets
|
195.9
|
|
|
185.3
|
|
||
Other intangible assets
|
277.2
|
|
|
274.8
|
|
||
Goodwill
|
860.8
|
|
|
862.9
|
|
||
TOTAL ASSETS
|
$
|
10,097.0
|
|
|
$
|
11,516.7
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
472.6
|
|
|
$
|
491.7
|
|
Accrued litigation charge
|
—
|
|
|
2,784.1
|
|
||
Accrued liabilities
|
1,260.1
|
|
|
1,269.3
|
|
||
Insurance reserves
|
184.5
|
|
|
178.5
|
|
||
Deferred revenue
|
816.3
|
|
|
653.7
|
|
||
Total current liabilities
|
2,733.5
|
|
|
5,377.3
|
|
||
Long-term debt
|
2,048.0
|
|
|
1,299.4
|
|
||
Other long-term liabilities
|
368.4
|
|
|
357.7
|
|
||
Total liabilities
|
5,149.9
|
|
|
7,034.4
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 1,200.0 shares; issued and outstanding,
754.1
shares and 753.2 shares, respectively
|
0.8
|
|
|
0.8
|
|
||
Additional paid-in capital
|
174.6
|
|
|
282.1
|
|
||
Retained earnings
|
4,705.4
|
|
|
4,130.3
|
|
||
Accumulated other comprehensive income
|
64.3
|
|
|
67.0
|
|
||
Total shareholders’ equity
|
4,945.1
|
|
|
4,480.2
|
|
||
Noncontrolling interest
|
2.0
|
|
|
2.1
|
|
||
Total equity
|
4,947.1
|
|
|
4,482.3
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
10,097.0
|
|
|
$
|
11,516.7
|
|
|
Two Quarters Ended
|
||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
967.6
|
|
|
$
|
823.1
|
|
Adjustments to reconcile net earnings to net cash (used)/provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
364.2
|
|
|
318.1
|
|
||
Deferred income taxes, net
|
36.1
|
|
|
(6.9
|
)
|
||
Income earned from equity method investees, net of distributions
|
(20.8
|
)
|
|
(15.9
|
)
|
||
Gain resulting from sale of equity in joint venture
|
—
|
|
|
(35.2
|
)
|
||
Stock-based compensation
|
91.6
|
|
|
70.9
|
|
||
Other
|
11.4
|
|
|
11.2
|
|
||
Cash (used)/provided by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(28.6
|
)
|
|
(25.2
|
)
|
||
Inventories
|
156.2
|
|
|
138.6
|
|
||
Accounts payable
|
(9.6
|
)
|
|
(37.2
|
)
|
||
Accrued litigation charge
|
(2,763.9
|
)
|
|
—
|
|
||
Accrued liabilities and insurance reserves
|
54.2
|
|
|
(36.9
|
)
|
||
Deferred revenue
|
162.5
|
|
|
154.0
|
|
||
Prepaid expenses, other current assets and other assets
|
(4.4
|
)
|
|
13.9
|
|
||
Net cash (used)/provided by operating activities
|
(983.5
|
)
|
|
1,372.5
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchase of investments
|
(974.9
|
)
|
|
(119.9
|
)
|
||
Sales, maturities and calls of investments
|
943.9
|
|
|
569.9
|
|
||
Acquisitions, net of cash acquired
|
—
|
|
|
(568.8
|
)
|
||
Additions to property, plant and equipment
|
(503.6
|
)
|
|
(484.9
|
)
|
||
Other
|
(14.4
|
)
|
|
(9.3
|
)
|
||
Net cash used by investing activities
|
(549.0
|
)
|
|
(613.0
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
748.5
|
|
|
—
|
|
||
Principal payments on long-term debt
|
—
|
|
|
(35.2
|
)
|
||
Proceeds from issuance of common stock
|
89.5
|
|
|
141.0
|
|
||
Excess tax benefit on share-based awards
|
87.3
|
|
|
193.2
|
|
||
Cash dividends paid
|
(392.3
|
)
|
|
(313.5
|
)
|
||
Repurchase of common stock
|
(290.1
|
)
|
|
(588.1
|
)
|
||
Minimum tax withholdings on share-based awards
|
(76.0
|
)
|
|
(119.9
|
)
|
||
Other
|
(9.5
|
)
|
|
4.0
|
|
||
Net cash provided/(used) by financing activities
|
157.4
|
|
|
(718.5
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(10.3
|
)
|
|
(6.4
|
)
|
||
Net (decrease)/increase in cash and cash equivalents
|
(1,385.4
|
)
|
|
34.6
|
|
||
CASH AND CASH EQUIVALENTS:
|
|
|
|
||||
Beginning of period
|
2,575.7
|
|
|
1,188.6
|
|
||
End of period
|
$
|
1,190.3
|
|
|
$
|
1,223.2
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest, net of capitalized interest
|
$
|
17.4
|
|
|
$
|
17.2
|
|
Income taxes
|
$
|
314.8
|
|
|
$
|
238.1
|
|
Note 1:
|
Summary of Significant Accounting Policies
|
|
Fiscal 2013
|
|
Fiscal 2012
|
||||||||||||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full Year
|
|
Full Year
|
||||||||||||
Net revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-operated stores
|
$
|
2,989.6
|
|
|
$
|
2,807.7
|
|
|
$
|
2,986.3
|
|
|
$
|
3,009.6
|
|
|
$
|
11,793.2
|
|
|
$
|
10,534.5
|
|
Licensed stores
|
350.2
|
|
|
322.1
|
|
|
342.0
|
|
|
346.3
|
|
|
1,360.5
|
|
|
1,210.3
|
|
||||||
CPG, foodservice and other
|
453.4
|
|
|
419.8
|
|
|
407.0
|
|
|
432.9
|
|
|
1,713.1
|
|
|
1,532.0
|
|
||||||
Total net revenues
|
3,793.2
|
|
|
3,549.6
|
|
|
3,735.3
|
|
|
3,788.8
|
|
|
14,866.8
|
|
|
13,276.8
|
|
||||||
Cost of sales including occupancy costs
|
1,620.7
|
|
|
1,530.4
|
|
|
1,597.6
|
|
|
1,633.7
|
|
|
6,382.3
|
|
|
5,813.3
|
|
||||||
Store operating expenses
|
1,089.5
|
|
|
1,038.4
|
|
|
1,084.1
|
|
|
1,073.9
|
|
|
4,286.1
|
|
|
3,918.1
|
|
||||||
Other operating expenses
|
126.1
|
|
|
105.8
|
|
|
98.9
|
|
|
101.1
|
|
|
431.8
|
|
|
407.2
|
|
||||||
Depreciation and amortization expenses
|
148.9
|
|
|
153.1
|
|
|
153.3
|
|
|
166.1
|
|
|
621.4
|
|
|
550.3
|
|
||||||
General and administrative expenses
|
231.9
|
|
|
230.3
|
|
|
249.6
|
|
|
226.1
|
|
|
937.9
|
|
|
801.2
|
|
||||||
Litigation charge
|
—
|
|
|
—
|
|
|
—
|
|
|
2,784.1
|
|
|
2,784.1
|
|
|
—
|
|
||||||
Total operating expenses
|
3,217.1
|
|
|
3,058.0
|
|
|
3,183.5
|
|
|
5,985.0
|
|
|
15,443.6
|
|
|
11,490.1
|
|
||||||
Income from equity investees
|
54.5
|
|
|
52.5
|
|
|
63.4
|
|
|
81.0
|
|
|
251.4
|
|
|
210.7
|
|
||||||
Operating income/(loss)
|
630.6
|
|
|
544.1
|
|
|
615.2
|
|
|
(2,115.2
|
)
|
|
(325.4
|
)
|
|
1,997.4
|
|
||||||
Interest income and other, net
|
(2.9
|
)
|
|
50.8
|
|
|
3.5
|
|
|
72.1
|
|
|
123.6
|
|
|
94.4
|
|
||||||
Interest expense
|
(6.6
|
)
|
|
(6.1
|
)
|
|
(6.3
|
)
|
|
(9.1
|
)
|
|
(28.1
|
)
|
|
(32.7
|
)
|
||||||
Earnings/(loss) before income taxes
|
621.1
|
|
|
588.8
|
|
|
612.4
|
|
|
(2,052.2
|
)
|
|
(229.9
|
)
|
|
2,059.1
|
|
||||||
Income taxes
|
188.7
|
|
|
198.1
|
|
|
194.6
|
|
|
(820.1
|
)
|
|
(238.7
|
)
|
|
674.4
|
|
||||||
Net earnings including noncontrolling interests
|
432.4
|
|
|
390.7
|
|
|
417.8
|
|
|
(1,232.1
|
)
|
|
8.8
|
|
|
1,384.7
|
|
||||||
Net earnings attributable to noncontrolling interests
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.5
|
|
|
0.9
|
|
||||||
Net earnings attributable to Starbucks
|
$
|
432.2
|
|
|
$
|
390.4
|
|
|
$
|
417.8
|
|
|
$
|
(1,232.0
|
)
|
|
$
|
8.3
|
|
|
$
|
1,383.8
|
|
|
Net Gains/(Losses)
Included in AOCI
|
|
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
|
|
Contract Remaining Maturity
(Months)
|
||||||||
|
Mar 30,
2014 |
|
Sep 29,
2013 |
|
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rates
|
$
|
38.0
|
|
|
$
|
41.4
|
|
|
$
|
3.2
|
|
|
|
Foreign currency
|
10.3
|
|
|
(0.3
|
)
|
|
6.0
|
|
|
34
|
|||
Coffee
|
(1.5
|
)
|
|
(12.2
|
)
|
|
(1.9
|
)
|
|
17
|
|||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
(9.2
|
)
|
|
(12.9
|
)
|
|
|
|
36
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||||||||||||
|
Gains/(Losses) Recognized in
OCI Before Reclassifications
|
|
Gains/(Losses) Reclassified from AOCI to Earnings
|
|
Gains/(Losses) Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from AOCI to Earnings
|
||||||||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rates
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
2.5
|
|
|
$
|
—
|
|
Foreign currency
|
7.0
|
|
|
1.8
|
|
|
2.1
|
|
|
1.2
|
|
|
18.6
|
|
|
6.4
|
|
|
3.3
|
|
|
0.6
|
|
||||||||
Coffee
|
1.1
|
|
|
(5.6
|
)
|
|
(0.9
|
)
|
|
(11.1
|
)
|
|
0.8
|
|
|
(27.1
|
)
|
|
(10.9
|
)
|
|
(16.3
|
)
|
||||||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency
|
(3.9
|
)
|
|
11.7
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
26.4
|
|
|
—
|
|
|
—
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||||||||||
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||
|
Mar 30, 2014
|
|
Mar 31, 2013
|
|
Mar 30, 2014
|
|
Mar 31, 2013
|
||||||||
Foreign currency
|
$
|
(0.1
|
)
|
|
$
|
3.3
|
|
|
$
|
(1.0
|
)
|
|
$
|
2.2
|
|
Coffee
|
—
|
|
|
0.6
|
|
|
—
|
|
|
(2.1
|
)
|
||||
Dairy
|
7.4
|
|
|
(1.1
|
)
|
|
11.9
|
|
|
(2.6
|
)
|
||||
Diesel fuel
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
Mar 30, 2014
|
|
Sep 29, 2013
|
||||
Foreign currency
|
$
|
512
|
|
|
$
|
452
|
|
Coffee
|
37
|
|
|
—
|
|
||
Dairy
|
21
|
|
|
38
|
|
||
Diesel fuel
|
18
|
|
|
17
|
|
Note 3:
|
Fair Value Measurements
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Mar 30, 2014 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other Observable
Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
1,190.3
|
|
|
$
|
1,190.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
||||
Corporate debt securities
|
16.3
|
|
|
—
|
|
|
16.3
|
|
|
—
|
|
||||
Foreign government obligations
|
6.4
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
||||
US government treasury securities
|
44.0
|
|
|
44.0
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
14.4
|
|
|
—
|
|
|
14.4
|
|
|
—
|
|
||||
Short-term bond funds
|
80.1
|
|
|
80.1
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
63.8
|
|
|
—
|
|
|
63.8
|
|
|
—
|
|
||||
Total available-for-sale securities
|
229.0
|
|
|
124.1
|
|
|
104.9
|
|
|
—
|
|
||||
Trading securities
|
70.2
|
|
|
70.2
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
299.2
|
|
|
194.3
|
|
|
104.9
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
27.7
|
|
|
5.2
|
|
|
22.5
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
9.2
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
||||
Corporate debt securities
|
196.8
|
|
|
—
|
|
|
196.8
|
|
|
—
|
|
||||
Auction rate securities
|
13.5
|
|
|
—
|
|
|
—
|
|
|
13.5
|
|
||||
Foreign government obligations
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
||||
US government treasury securities
|
148.9
|
|
|
148.9
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
6.9
|
|
|
—
|
|
|
6.9
|
|
|
—
|
|
||||
Mortgage and asset-backed securities
|
70.5
|
|
|
—
|
|
|
70.5
|
|
|
—
|
|
||||
Total long-term investments
|
449.8
|
|
|
148.9
|
|
|
287.4
|
|
|
13.5
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
11.8
|
|
|
—
|
|
|
11.8
|
|
|
—
|
|
||||
Total
|
$
|
1,978.8
|
|
|
$
|
1,538.7
|
|
|
$
|
426.6
|
|
|
$
|
13.5
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
0.4
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Total
|
$
|
0.6
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Sep 29, 2013 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other Observable
Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
2,575.7
|
|
|
$
|
2,575.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
20.0
|
|
|
—
|
|
|
20.0
|
|
|
—
|
|
||||
Commercial paper
|
127.0
|
|
|
—
|
|
|
127.0
|
|
|
—
|
|
||||
Corporate debt securities
|
57.5
|
|
|
—
|
|
|
57.5
|
|
|
—
|
|
||||
Government treasury securities
|
352.9
|
|
|
352.9
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
34.1
|
|
|
—
|
|
|
34.1
|
|
|
—
|
|
||||
Total available-for-sale securities
|
591.5
|
|
|
352.9
|
|
|
238.6
|
|
|
—
|
|
||||
Trading securities
|
66.6
|
|
|
66.6
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
658.1
|
|
|
419.5
|
|
|
238.6
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
12.5
|
|
|
—
|
|
|
12.5
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
8.1
|
|
|
—
|
|
|
8.1
|
|
|
—
|
|
||||
Corporate debt securities
|
36.8
|
|
|
—
|
|
|
36.8
|
|
|
—
|
|
||||
Auction rate securities
|
13.4
|
|
|
—
|
|
|
—
|
|
|
13.4
|
|
||||
Total long-term investments
|
58.3
|
|
|
—
|
|
|
44.9
|
|
|
13.4
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
11.4
|
|
|
—
|
|
|
11.4
|
|
|
—
|
|
||||
Total
|
$
|
3,316.0
|
|
|
$
|
2,995.2
|
|
|
$
|
307.4
|
|
|
$
|
13.4
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
3.5
|
|
|
$
|
—
|
|
|
$
|
3.5
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Total
|
$
|
4.0
|
|
|
$
|
—
|
|
|
$
|
4.0
|
|
|
$
|
—
|
|
Note 4:
|
Inventories
|
(in millions)
|
Mar 30, 2014
|
|
Sep 29, 2013
|
|
Mar 31, 2013
|
||||||
Coffee:
|
|
|
|
|
|
||||||
Unroasted
|
$
|
400.0
|
|
|
$
|
493.0
|
|
|
$
|
590.4
|
|
Roasted
|
189.5
|
|
|
235.4
|
|
|
214.3
|
|
|||
Other merchandise held for sale
|
210.1
|
|
|
243.3
|
|
|
200.7
|
|
|||
Packaging and other supplies
|
155.1
|
|
|
139.5
|
|
|
119.1
|
|
|||
Total
|
$
|
954.7
|
|
|
$
|
1,111.2
|
|
|
$
|
1,124.5
|
|
Note 5:
|
Supplemental Balance Sheet Information
(in millions)
|
Property, Plant and Equipment, net
|
Mar 30, 2014
|
|
Sep 29, 2013
|
||||
Land
|
$
|
46.9
|
|
|
$
|
47.0
|
|
Buildings
|
277.9
|
|
|
259.6
|
|
||
Leasehold improvements
|
4,611.1
|
|
|
4,431.6
|
|
||
Store equipment
|
1,412.3
|
|
|
1,353.9
|
|
||
Roasting equipment
|
415.4
|
|
|
397.9
|
|
||
Furniture, fixtures and other
|
1,007.8
|
|
|
949.7
|
|
||
Work in progress
|
347.3
|
|
|
342.4
|
|
||
Property, plant and equipment, gross
|
8,118.7
|
|
|
7,782.1
|
|
||
Less accumulated depreciation
|
(4,840.6
|
)
|
|
(4,581.6
|
)
|
||
Property, plant and equipment, net
|
$
|
3,278.1
|
|
|
$
|
3,200.5
|
|
Accrued Liabilities
|
Mar 30, 2014
|
|
Sep 29, 2013
|
||||
Accrued compensation and related costs
|
$
|
379.1
|
|
|
$
|
420.2
|
|
Accrued occupancy costs
|
114.6
|
|
|
120.7
|
|
||
Accrued taxes
|
133.6
|
|
|
125.0
|
|
||
Accrued dividend payable
|
196.1
|
|
|
195.8
|
|
||
Other
|
436.7
|
|
|
407.6
|
|
||
Total accrued liabilities
|
$
|
1,260.1
|
|
|
$
|
1,269.3
|
|
Note 6:
|
Debt
|
(1)
|
Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
|
|
Two Quarters Ended
|
||||||
|
Mar 30, 2014
|
|
Mar 31, 2013
|
||||
Beginning balance of total equity
|
$
|
4,482.3
|
|
|
$
|
5,114.5
|
|
Net earnings including noncontrolling interests
|
967.6
|
|
|
823.1
|
|
||
Other comprehensive income/(loss)
|
(2.7
|
)
|
|
(40.0
|
)
|
||
Stock-based compensation expense
|
92.6
|
|
|
71.9
|
|
||
Exercise of stock options/vesting of RSUs
|
90.0
|
|
|
205.2
|
|
||
Sale of common stock
|
11.0
|
|
|
10.2
|
|
||
Repurchase of common stock
|
(301.2
|
)
|
|
(544.1
|
)
|
||
Cash dividends declared
|
(392.5
|
)
|
|
(313.3
|
)
|
||
Ending balance of total equity
|
$
|
4,947.1
|
|
|
$
|
5,327.5
|
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment
|
|
Total
|
||||||||||
Net gains/(losses) in AOCI at December 29, 2013
|
$
|
(1.7
|
)
|
|
$
|
42.2
|
|
|
$
|
(6.7
|
)
|
|
$
|
34.9
|
|
|
$
|
68.7
|
|
Net gains/(losses) recognized in OCI before reclassifications
|
0.7
|
|
|
6.0
|
|
|
(2.5
|
)
|
|
(7.4
|
)
|
|
(3.2
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.2
|
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
|||||
Other comprehensive income/(loss)
|
0.9
|
|
|
4.6
|
|
|
(2.5
|
)
|
|
(7.4
|
)
|
|
(4.4
|
)
|
|||||
Net gains/(losses) in AOCI at March 30, 2014
|
$
|
(0.8
|
)
|
|
$
|
46.8
|
|
|
$
|
(9.2
|
)
|
|
$
|
27.5
|
|
|
$
|
64.3
|
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment
|
|
Total
|
||||||||||
Net gains/(losses) in AOCI at September 29, 2013
|
$
|
(0.5
|
)
|
|
$
|
26.8
|
|
|
$
|
(12.9
|
)
|
|
$
|
53.6
|
|
|
$
|
67.0
|
|
Net gains/(losses) recognized in OCI before reclassifications
|
(0.5
|
)
|
|
13.9
|
|
|
3.7
|
|
|
(26.1
|
)
|
|
(9.0
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.2
|
|
|
6.1
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|||||
Other comprehensive income/(loss)
|
(0.3
|
)
|
|
20.0
|
|
|
3.7
|
|
|
(26.1
|
)
|
|
(2.7
|
)
|
|||||
Net gains/(losses) in AOCI at March 30, 2014
|
$
|
(0.8
|
)
|
|
$
|
46.8
|
|
|
$
|
(9.2
|
)
|
|
$
|
27.5
|
|
|
$
|
64.3
|
|
AOCI
Components
|
|
Amounts Reclassified
from AOCI
(in millions)
|
|
Affected Line Item in
the Statements of Earnings
|
||
Gains/(losses) on cash flow hedges
|
|
|
|
|
||
Interest rate hedges
|
|
$
|
1.3
|
|
|
Interest expense
|
Foreign currency hedges
|
|
1.3
|
|
|
Revenue
|
|
Foreign currency/coffee hedges
|
|
(0.1
|
)
|
|
Cost of sales including occupancy costs
|
|
|
|
2.5
|
|
|
Total before tax
|
|
|
|
(1.1
|
)
|
|
Tax (expense)/benefit
|
|
|
|
$
|
1.4
|
|
|
Net of tax
|
AOCI
Components
|
|
Amounts Reclassified
from AOCI
(in millions)
|
|
Affected Line Item in
the Statements of Earnings
|
||
Gains/(losses) on cash flow hedges
|
|
|
|
|
||
Interest rate hedges
|
|
$
|
2.5
|
|
|
Interest expense
|
Foreign currency hedges
|
|
2.3
|
|
|
Revenue
|
|
Foreign currency / coffee hedges
|
|
(9.9
|
)
|
|
Cost of sales including occupancy costs
|
|
|
|
(5.1
|
)
|
|
Total before tax
|
|
|
|
(1.0
|
)
|
|
Tax (expense)/benefit
|
|
|
|
$
|
(6.1
|
)
|
|
Net of tax
|
Note 8:
|
Employee Stock Plans
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||
|
Mar 30, 2014
|
|
Mar 31, 2013
|
|
Mar 30, 2014
|
|
Mar 31, 2013
|
||||||||
Options
|
$
|
9.7
|
|
|
$
|
7.9
|
|
|
$
|
22.5
|
|
|
$
|
19.8
|
|
Restricted Stock Units (“RSUs”)
|
34.1
|
|
|
25.6
|
|
|
69.1
|
|
|
51.1
|
|
||||
Total stock-based compensation
|
$
|
43.8
|
|
|
$
|
33.5
|
|
|
$
|
91.6
|
|
|
$
|
70.9
|
|
|
Stock Options
|
|
RSUs
|
||||
Options outstanding/Nonvested RSUs, September 29, 2013
|
22.0
|
|
|
5.8
|
|
||
Granted
|
3.0
|
|
|
2.4
|
|
||
Options exercised/RSUs vested
|
(3.2
|
)
|
|
(2.5
|
)
|
||
Forfeited/expired
|
(0.3
|
)
|
|
(0.4
|
)
|
||
Options outstanding/Nonvested RSUs, March 30, 2014
|
21.5
|
|
|
5.3
|
|
||
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of March 30, 2014
|
$
|
51.9
|
|
|
$
|
153.0
|
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||
|
Mar 30, 2014
|
|
Mar 31, 2013
|
|
Mar 30, 2014
|
|
Mar 31, 2013
|
||||||||
Net earnings attributable to Starbucks
|
$
|
427.0
|
|
|
$
|
390.4
|
|
|
$
|
967.6
|
|
|
$
|
822.5
|
|
Weighted average common shares outstanding (for basic calculation)
|
755.2
|
|
|
749.1
|
|
|
755.0
|
|
|
747.6
|
|
||||
Dilutive effect of outstanding common stock options and RSUs
|
9.4
|
|
|
12.2
|
|
|
10.4
|
|
|
13.7
|
|
||||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
764.6
|
|
|
761.3
|
|
|
765.4
|
|
|
761.3
|
|
||||
EPS — basic
|
$
|
0.57
|
|
|
$
|
0.52
|
|
|
$
|
1.28
|
|
|
$
|
1.10
|
|
EPS — diluted
|
$
|
0.56
|
|
|
$
|
0.51
|
|
|
$
|
1.26
|
|
|
$
|
1.08
|
|
Note 10:
|
Commitments and Contingencies
|
(in millions)
|
Americas
|
|
EMEA
|
|
China /
Asia Pacific
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
March 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
2,808.8
|
|
|
$
|
309.9
|
|
|
$
|
265.3
|
|
|
$
|
370.4
|
|
|
$
|
119.4
|
|
|
$
|
3,873.8
|
|
Depreciation and amortization expenses
|
114.8
|
|
|
14.8
|
|
|
11.8
|
|
|
0.4
|
|
|
3.7
|
|
|
145.5
|
|
||||||
Income from equity investees
|
—
|
|
|
1.1
|
|
|
37.4
|
|
|
21.4
|
|
|
—
|
|
|
59.9
|
|
||||||
Operating income/(loss)
|
605.6
|
|
|
17.7
|
|
|
87.0
|
|
|
127.3
|
|
|
(7.8
|
)
|
|
829.8
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
2,604.1
|
|
|
$
|
273.2
|
|
|
$
|
213.6
|
|
|
$
|
338.1
|
|
|
$
|
120.6
|
|
|
$
|
3,549.6
|
|
Depreciation and amortization expenses
|
105.6
|
|
|
13.7
|
|
|
8.5
|
|
|
0.3
|
|
|
3.4
|
|
|
131.5
|
|
||||||
Income from equity investees
|
2.4
|
|
|
—
|
|
|
30.8
|
|
|
19.3
|
|
|
—
|
|
|
52.5
|
|
||||||
Operating income/(loss)
|
549.7
|
|
|
5.2
|
|
|
68.3
|
|
|
94.1
|
|
|
(4.1
|
)
|
|
713.2
|
|
(in millions)
|
Americas
|
|
EMEA
|
|
China /
Asia Pacific
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
March 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
5,881.7
|
|
|
$
|
649.5
|
|
|
$
|
532.2
|
|
|
$
|
771.5
|
|
|
$
|
278.5
|
|
|
$
|
8,113.4
|
|
Depreciation and amortization expenses
|
227.1
|
|
|
29.4
|
|
|
22.0
|
|
|
0.8
|
|
|
7.3
|
|
|
286.6
|
|
||||||
Income from equity investees
|
—
|
|
|
1.9
|
|
|
70.5
|
|
|
38.6
|
|
|
—
|
|
|
111.0
|
|
||||||
Operating income
|
1,337.6
|
|
|
51.2
|
|
|
168.0
|
|
|
246.2
|
|
|
6.1
|
|
|
1,809.1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
5,444.7
|
|
|
$
|
579.3
|
|
|
$
|
427.7
|
|
|
$
|
712.5
|
|
|
$
|
178.5
|
|
|
$
|
7,342.7
|
|
Depreciation and amortization expenses
|
211.0
|
|
|
27.9
|
|
|
15.9
|
|
|
0.6
|
|
|
4.3
|
|
|
259.7
|
|
||||||
Income from equity investees
|
2.4
|
|
|
—
|
|
|
64.9
|
|
|
39.7
|
|
|
—
|
|
|
107.0
|
|
||||||
Operating income/(loss)
|
1,139.8
|
|
|
27.5
|
|
|
140.4
|
|
|
191.0
|
|
|
(8.2
|
)
|
|
1,490.5
|
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||
|
Mar 30, 2014
|
|
Mar 31, 2013
|
|
Mar 30, 2014
|
|
Mar 31, 2013
|
||||||||
Total segment operating income
|
$
|
829.8
|
|
|
$
|
713.2
|
|
|
$
|
1,809.1
|
|
|
$
|
1,490.5
|
|
Unallocated corporate operating expenses
|
(185.7
|
)
|
|
(169.1
|
)
|
|
(351.4
|
)
|
|
(315.9
|
)
|
||||
Consolidated operating income
|
644.1
|
|
|
544.1
|
|
|
1,457.7
|
|
|
1,174.6
|
|
||||
Interest income and other, net
|
17.8
|
|
|
50.8
|
|
|
37.6
|
|
|
48.0
|
|
||||
Interest expense
|
(16.7
|
)
|
|
(6.1
|
)
|
|
(31.3
|
)
|
|
(12.7
|
)
|
||||
Earnings before income taxes
|
$
|
645.2
|
|
|
$
|
588.8
|
|
|
$
|
1,464.0
|
|
|
$
|
1,209.9
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Quarter Ended Mar 30, 2014
|
|
Two Quarters Ended Mar 30, 2014
|
||||||||
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
Consolidated
|
6%
|
|
3%
|
|
3%
|
|
6%
|
|
3%
|
|
2%
|
Americas
|
6%
|
|
2%
|
|
3%
|
|
5%
|
|
3%
|
|
2%
|
EMEA
|
6%
|
|
5%
|
|
1%
|
|
5%
|
|
4%
|
|
1%
|
China/Asia Pacific
|
7%
|
|
7%
|
|
—%
|
|
7%
|
|
7%
|
|
1%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
%
Change
|
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
%
Change
|
||||||||||
Company-operated stores
|
$
|
3,068.0
|
|
|
$
|
2,807.7
|
|
|
9.3
|
%
|
|
$
|
6,411.8
|
|
|
$
|
5,797.3
|
|
|
10.6
|
%
|
Licensed stores
|
356.2
|
|
|
322.1
|
|
|
10.6
|
|
|
758.0
|
|
|
672.2
|
|
|
12.8
|
|
||||
CPG, foodservice and other
|
449.6
|
|
|
419.8
|
|
|
7.1
|
|
|
943.6
|
|
|
873.2
|
|
|
8.1
|
|
||||
Total net revenues
|
$
|
3,873.8
|
|
|
$
|
3,549.6
|
|
|
9.1
|
%
|
|
$
|
8,113.4
|
|
|
$
|
7,342.7
|
|
|
10.5
|
%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||||||
|
|
|
|
|
% of Total
Net Revenues
|
|
|
|
|
|
% of Total
Net Revenues
|
||||||||||||||||
Cost of sales including occupancy costs
|
$
|
1,629.2
|
|
|
$
|
1,530.4
|
|
|
42.1
|
%
|
|
43.1
|
%
|
|
$
|
3,424.2
|
|
|
$
|
3,151.1
|
|
|
42.2
|
%
|
|
42.9
|
%
|
Store operating expenses
|
1,134.5
|
|
|
1,038.4
|
|
|
29.3
|
|
|
29.3
|
|
|
2,309.6
|
|
|
2,127.9
|
|
|
28.5
|
|
|
29.0
|
|
||||
Other operating expenses
|
110.9
|
|
|
105.8
|
|
|
2.9
|
|
|
3.0
|
|
|
225.8
|
|
|
231.9
|
|
|
2.8
|
|
|
3.2
|
|
||||
Depreciation and amortization expenses
|
174.4
|
|
|
153.1
|
|
|
4.5
|
|
|
4.3
|
|
|
344.1
|
|
|
302.0
|
|
|
4.2
|
|
|
4.1
|
|
||||
General and administrative expenses
|
240.6
|
|
|
230.3
|
|
|
6.2
|
|
|
6.5
|
|
|
483.2
|
|
|
462.2
|
|
|
6.0
|
|
|
6.3
|
|
||||
Litigation charge/(credit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
||||
Total operating expenses
|
3,289.6
|
|
|
3,058.0
|
|
|
84.9
|
|
|
86.2
|
|
|
6,766.7
|
|
|
6,275.1
|
|
|
83.4
|
|
|
85.5
|
|
||||
Income from equity investees
|
59.9
|
|
|
52.5
|
|
|
1.5
|
|
|
1.5
|
|
|
111.0
|
|
|
107.0
|
|
|
1.4
|
|
|
1.5
|
|
||||
Operating income
|
$
|
644.1
|
|
|
$
|
544.1
|
|
|
16.6
|
%
|
|
15.3
|
%
|
|
$
|
1,457.7
|
|
|
$
|
1,174.6
|
|
|
18.0
|
%
|
|
16.0
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
37.0
|
%
|
|
37.0
|
%
|
|
|
|
|
|
36.0
|
%
|
|
36.7
|
%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||||||
|
|
|
|
|
% of Total
Net Revenues
|
|
|
|
|
|
% of Total
Net Revenues |
||||||||||||||||
Operating income
|
$
|
644.1
|
|
|
$
|
544.1
|
|
|
16.6
|
%
|
|
15.3
|
%
|
|
$
|
1,457.7
|
|
|
$
|
1,174.6
|
|
|
18.0
|
%
|
|
16.0
|
%
|
Interest income and other, net
|
17.8
|
|
|
50.8
|
|
|
0.5
|
|
|
1.4
|
|
|
37.6
|
|
|
48.0
|
|
|
0.5
|
|
|
0.7
|
|
||||
Interest expense
|
(16.7
|
)
|
|
(6.1
|
)
|
|
(0.4
|
)
|
|
(0.2
|
)
|
|
(31.3
|
)
|
|
(12.7
|
)
|
|
(0.4
|
)
|
|
(0.2
|
)
|
||||
Earnings before income taxes
|
645.2
|
|
|
588.8
|
|
|
16.7
|
|
|
16.6
|
|
|
1,464.0
|
|
|
1,209.9
|
|
|
18.0
|
|
|
16.5
|
|
||||
Income taxes
|
218.3
|
|
|
198.1
|
|
|
5.6
|
|
|
5.6
|
|
|
496.4
|
|
|
386.8
|
|
|
6.1
|
|
|
5.3
|
|
||||
Net earnings including noncontrolling interests
|
426.9
|
|
|
390.7
|
|
|
11.0
|
|
|
11.0
|
|
|
967.6
|
|
|
823.1
|
|
|
11.9
|
|
|
11.2
|
|
||||
Net earnings attributable to noncontrolling interests
|
(0.1
|
)
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
||||
Net earnings attributable to Starbucks
|
$
|
427.0
|
|
|
$
|
390.4
|
|
|
11.0
|
%
|
|
11.0
|
%
|
|
$
|
967.6
|
|
|
$
|
822.5
|
|
|
11.9
|
%
|
|
11.2
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
33.8
|
%
|
|
33.6
|
%
|
|
|
|
|
|
33.9
|
%
|
|
32.0
|
%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||||||
|
|
|
|
|
% of Americas
Net Revenues
|
|
|
|
|
|
% of Americas
Net Revenues
|
||||||||||||||||
Total net revenues
|
$
|
2,808.8
|
|
|
$
|
2,604.1
|
|
|
|
|
|
|
$
|
5,881.7
|
|
|
$
|
5,444.7
|
|
|
|
|
|
||||
Cost of sales including occupancy costs
|
1,059.6
|
|
|
1,000.0
|
|
|
37.7
|
%
|
|
38.4
|
%
|
|
2,223.8
|
|
|
2,092.5
|
|
|
37.8
|
%
|
|
38.4
|
%
|
||||
Store operating expenses
|
963.9
|
|
|
891.9
|
|
|
34.3
|
|
|
34.2
|
|
|
1,963.5
|
|
|
1,851.7
|
|
|
33.4
|
|
|
34.0
|
|
||||
Other operating expenses
|
23.7
|
|
|
21.2
|
|
|
0.8
|
|
|
0.8
|
|
|
49.0
|
|
|
51.2
|
|
|
0.8
|
|
|
0.9
|
|
||||
Depreciation and amortization expenses
|
114.8
|
|
|
105.6
|
|
|
4.1
|
|
|
4.1
|
|
|
227.1
|
|
|
211.0
|
|
|
3.9
|
|
|
3.9
|
|
||||
General and administrative expenses
|
41.2
|
|
|
38.1
|
|
|
1.5
|
|
|
1.5
|
|
|
80.7
|
|
|
100.9
|
|
|
1.4
|
|
|
1.9
|
|
||||
Total operating expenses
|
2,203.2
|
|
|
2,056.8
|
|
|
78.4
|
|
|
79.0
|
|
|
4,544.1
|
|
|
4,307.3
|
|
|
77.3
|
|
|
79.1
|
|
||||
Income from equity investees
|
—
|
|
|
2.4
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
||||
Operating income
|
$
|
605.6
|
|
|
$
|
549.7
|
|
|
21.6
|
%
|
|
21.1
|
%
|
|
$
|
1,337.6
|
|
|
$
|
1,139.8
|
|
|
22.7
|
%
|
|
20.9
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
37.6
|
%
|
|
37.5
|
%
|
|
|
|
|
|
36.7
|
%
|
|
37.3
|
%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||||||
|
|
|
|
|
% of EMEA
Net Revenues
|
|
|
|
|
|
% of EMEA
Net Revenues
|
||||||||||||||||
Total net revenues
|
$
|
309.9
|
|
|
$
|
273.2
|
|
|
|
|
|
|
$
|
649.5
|
|
|
$
|
579.3
|
|
|
|
|
|
||||
Cost of sales including occupancy costs
|
158.3
|
|
|
140.8
|
|
|
51.1
|
%
|
|
51.5
|
%
|
|
326.5
|
|
|
293.3
|
|
|
50.3
|
%
|
|
50.6
|
%
|
||||
Store operating expenses
|
92.4
|
|
|
83.2
|
|
|
29.8
|
|
|
30.5
|
|
|
188.8
|
|
|
173.5
|
|
|
29.1
|
|
|
29.9
|
|
||||
Other operating expenses
|
11.8
|
|
|
10.7
|
|
|
3.8
|
|
|
3.9
|
|
|
23.4
|
|
|
19.1
|
|
|
3.6
|
|
|
3.3
|
|
||||
Depreciation and amortization expenses
|
14.8
|
|
|
13.7
|
|
|
4.8
|
|
|
5.0
|
|
|
29.4
|
|
|
27.9
|
|
|
4.5
|
|
|
4.8
|
|
||||
General and administrative expenses
|
16.0
|
|
|
19.6
|
|
|
5.2
|
|
|
7.2
|
|
|
32.1
|
|
|
38.0
|
|
|
4.9
|
|
|
6.6
|
|
||||
Total operating expenses
|
293.3
|
|
|
268.0
|
|
|
94.6
|
|
|
98.1
|
|
|
600.2
|
|
|
551.8
|
|
|
92.4
|
|
|
95.3
|
|
||||
Income from equity investees
|
1.1
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Operating income
|
$
|
17.7
|
|
|
$
|
5.2
|
|
|
5.7
|
%
|
|
1.9
|
%
|
|
$
|
51.2
|
|
|
$
|
27.5
|
|
|
7.9
|
%
|
|
4.7
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
37.6
|
%
|
|
38.0
|
%
|
|
|
|
|
|
36.7
|
%
|
|
36.8
|
%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||||||
|
|
|
|
|
% of CAP
Net Revenues
|
|
|
|
|
|
% of CAP
Net Revenues
|
||||||||||||||||
Total net revenues
|
$
|
265.3
|
|
|
$
|
213.6
|
|
|
|
|
|
|
$
|
532.2
|
|
|
$
|
427.7
|
|
|
|
|
|
||||
Cost of sales including occupancy costs
|
127.4
|
|
|
104.9
|
|
|
48.0
|
%
|
|
49.1
|
%
|
|
260.2
|
|
|
211.4
|
|
|
48.9
|
%
|
|
49.4
|
%
|
||||
Store operating expenses
|
52.4
|
|
|
40.3
|
|
|
19.8
|
|
|
18.9
|
|
|
103.7
|
|
|
79.7
|
|
|
19.5
|
|
|
18.6
|
|
||||
Other operating expenses
|
11.1
|
|
|
11.5
|
|
|
4.2
|
|
|
5.4
|
|
|
21.7
|
|
|
21.7
|
|
|
4.1
|
|
|
5.1
|
|
||||
Depreciation and amortization expenses
|
11.8
|
|
|
8.5
|
|
|
4.4
|
|
|
4.0
|
|
|
22.0
|
|
|
15.9
|
|
|
4.1
|
|
|
3.7
|
|
||||
General and administrative expenses
|
13.0
|
|
|
10.9
|
|
|
4.9
|
|
|
5.1
|
|
|
27.1
|
|
|
23.5
|
|
|
5.1
|
|
|
5.5
|
|
||||
Total operating expenses
|
215.7
|
|
|
176.1
|
|
|
81.3
|
|
|
82.4
|
|
|
434.7
|
|
|
352.2
|
|
|
81.7
|
|
|
82.3
|
|
||||
Income from equity investees
|
37.4
|
|
|
30.8
|
|
|
14.1
|
|
|
14.4
|
|
|
70.5
|
|
|
64.9
|
|
|
13.2
|
|
|
15.2
|
|
||||
Operating income
|
$
|
87.0
|
|
|
$
|
68.3
|
|
|
32.8
|
%
|
|
32.0
|
%
|
|
$
|
168.0
|
|
|
$
|
140.4
|
|
|
31.6
|
%
|
|
32.8
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
25.9
|
%
|
|
25.8
|
%
|
|
|
|
|
|
25.7
|
%
|
|
26.0
|
%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||||||||
|
|
|
|
|
% of Channel Development
Net Revenues
|
|
|
|
|
|
% of Channel
Development
Net Revenues
|
||||||||||||||||
Total net revenues
|
$
|
370.4
|
|
|
$
|
338.1
|
|
|
|
|
|
|
$
|
771.5
|
|
|
$
|
712.5
|
|
|
|
|
|
||||
Cost of sales
|
213.6
|
|
|
212.6
|
|
|
57.7
|
%
|
|
62.9
|
%
|
|
459.2
|
|
|
447.8
|
|
|
59.5
|
%
|
|
62.8
|
%
|
||||
Other operating expenses
|
46.6
|
|
|
43.9
|
|
|
12.6
|
|
|
13.0
|
|
|
94.6
|
|
|
101.5
|
|
|
12.3
|
|
|
14.2
|
|
||||
Depreciation and amortization expenses
|
0.4
|
|
|
0.3
|
|
|
0.1
|
|
|
0.1
|
|
|
0.8
|
|
|
0.6
|
|
|
0.1
|
|
|
0.1
|
|
||||
General and administrative expenses
|
3.9
|
|
|
6.5
|
|
|
1.1
|
|
|
1.9
|
|
|
9.3
|
|
|
11.3
|
|
|
1.2
|
|
|
1.6
|
|
||||
Total operating expenses
|
264.5
|
|
|
263.3
|
|
|
71.4
|
|
|
77.9
|
|
|
563.9
|
|
|
561.2
|
|
|
73.1
|
|
|
78.8
|
|
||||
Income from equity investees
|
21.4
|
|
|
19.3
|
|
|
5.8
|
|
|
5.7
|
|
|
38.6
|
|
|
39.7
|
|
|
5.0
|
|
|
5.6
|
|
||||
Operating income
|
$
|
127.3
|
|
|
$
|
94.1
|
|
|
34.4
|
%
|
|
27.8
|
%
|
|
$
|
246.2
|
|
|
$
|
191.0
|
|
|
31.9
|
%
|
|
26.8
|
%
|
|
Quarter Ended
|
|
Two Quarters Ended
|
||||||||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
%
Change
|
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
%
Change
|
||||||||||
Total net revenues
|
$
|
119.4
|
|
|
$
|
120.6
|
|
|
(1.0
|
)%
|
|
$
|
278.5
|
|
|
$
|
178.5
|
|
|
56.0
|
%
|
Cost of sales
|
68.8
|
|
|
69.7
|
|
|
(1.3
|
)
|
|
151.3
|
|
|
106.0
|
|
|
42.7
|
|
||||
Store operating expenses
|
25.8
|
|
|
23.0
|
|
|
12.2
|
|
|
53.6
|
|
|
23.0
|
|
|
133.0
|
|
||||
Other operating expenses
|
18.0
|
|
|
18.5
|
|
|
(2.7
|
)
|
|
37.6
|
|
|
38.4
|
|
|
(2.1
|
)
|
||||
Depreciation and amortization expenses
|
3.7
|
|
|
3.4
|
|
|
8.8
|
|
|
7.3
|
|
|
4.3
|
|
|
69.8
|
|
||||
General and administrative expenses
|
10.9
|
|
|
10.1
|
|
|
7.9
|
|
|
22.6
|
|
|
15.0
|
|
|
50.7
|
|
||||
Total operating expenses
|
127.2
|
|
|
124.7
|
|
|
2.0
|
|
|
272.4
|
|
|
186.7
|
|
|
45.9
|
|
||||
Operating income/(loss)
|
$
|
(7.8
|
)
|
|
$
|
(4.1
|
)
|
|
90.2%
|
|
$
|
6.1
|
|
|
$
|
(8.2
|
)
|
|
nm
|
|
|
Net stores opened/(closed) during the period
|
|
|
|
|
||||||||||||
|
Quarter Ended
|
|
Two Quarters Ended
|
|
Stores open as of
|
||||||||||||
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
|
Mar 30,
2014 |
|
Mar 31,
2013 |
||||||
Americas
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
59
|
|
|
24
|
|
|
86
|
|
|
50
|
|
|
8,164
|
|
|
7,852
|
|
Licensed stores
|
69
|
|
|
71
|
|
|
184
|
|
|
132
|
|
|
5,599
|
|
|
5,143
|
|
Total Americas
|
128
|
|
|
95
|
|
|
270
|
|
|
182
|
|
|
13,763
|
|
|
12,995
|
|
EMEA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
1
|
|
|
(4
|
)
|
|
4
|
|
|
(24
|
)
|
|
842
|
|
|
843
|
|
Licensed stores
|
31
|
|
|
26
|
|
|
92
|
|
|
53
|
|
|
1,223
|
|
|
1,055
|
|
Total EMEA
|
32
|
|
|
22
|
|
|
96
|
|
|
29
|
|
|
2,065
|
|
|
1,898
|
|
China / Asia Pacific
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
53
|
|
|
66
|
|
|
114
|
|
|
113
|
|
|
1,020
|
|
|
779
|
|
Licensed stores
|
121
|
|
|
81
|
|
|
269
|
|
|
159
|
|
|
3,245
|
|
|
2,787
|
|
Total China / Asia Pacific
|
174
|
|
|
147
|
|
|
383
|
|
|
272
|
|
|
4,265
|
|
|
3,566
|
|
All Other Segments
(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
4
|
|
|
306
|
|
|
11
|
|
|
309
|
|
|
368
|
|
|
323
|
|
Licensed stores
|
(3
|
)
|
|
20
|
|
|
(8
|
)
|
|
10
|
|
|
58
|
|
|
86
|
|
Total All Other Segments
|
1
|
|
|
326
|
|
|
3
|
|
|
319
|
|
|
426
|
|
|
409
|
|
Total Company
|
335
|
|
|
590
|
|
|
752
|
|
|
802
|
|
|
20,519
|
|
|
18,868
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
|
|
Total
Number of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) |
|||||
Period
(1)
|
|
|
|
|
|
|
|
|
|||||
December 30, 2013 — January 26, 2014
|
|
1,025,288
|
|
|
$
|
75.97
|
|
|
1,025,288
|
|
|
24,729,132
|
|
January 27, 2014 — February 23, 2014
|
|
1,276,100
|
|
|
72.50
|
|
|
1,276,100
|
|
|
23,453,032
|
|
|
February 24, 2014 — March 30, 2014
|
|
1,161,688
|
|
|
72.33
|
|
|
1,161,688
|
|
|
22,291,344
|
|
|
Total
|
|
3,463,076
|
|
|
$
|
73.47
|
|
|
3,463,076
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the
second
quarter of fiscal
2014
.
|
(2)
|
The share repurchase program is conducted under authorizations made from time to time by our Board of Directors. On
November 3, 2011
, we publicly announced the authorization of up to an additional
20 million
shares, and on
November 15, 2012
, we publicly announced the authorization of up to an additional
25 million
shares. These authorizations have no expiration date.
|
Item 6.
|
Exhibits
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||||||
Exhibit
No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of
Filing
|
|
Exhibit Number
|
|
Filed
Herewith
|
|||||
|
|
|
|
|
|
|
|||||||||||
3.1
|
|
Restated Articles of Incorporation of Starbucks Corporation
|
|
10-Q
|
|
0-20322
|
|
5/12/2006
|
|
3.1
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
3.2
|
|
Amended and Restated Bylaws of Starbucks Corporation (As amended and restated through November 13, 2012)
|
|
10-K
|
|
0-20322
|
|
11/16/2012
|
|
3.2
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
10.1
|
|
Letter Agreement dated January 29, 2014 between Starbucks Corporation and Troy Alstead
|
|
8-K
|
|
0-20322
|
|
1/29/2014
|
|
10.1
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
10.2
|
|
Letter Agreement dated January 29, 2014 between Starbucks Corporation and Scott Maw
|
|
8-K
|
|
0-20322
|
|
1/29/2014
|
|
10.2
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
10.3
|
|
Exclusive Aircraft Sublease (S/N 6003) dated as of September 27, 2013 by and between Cloverdale Services, LLC and Starbucks Corporation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
31.1
|
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||
|
|
|
|
|
|
|
|||||||||||
31.2
|
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||
|
|
|
|
|
|
|
|||||||||||
32*
|
|
Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||
|
|
|
|
|
|
|
|||||||||||
101
|
|
The following financial statements from the Company’s 10-Q for the fiscal quarter ended March 30, 2014, formatted in XBRL: (i) Condensed Consolidated Statements of Earnings, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
STARBUCKS CORPORATION
|
||
|
|
|
|
|
By:
|
|
/s/ Scott Maw
|
|
|
|
Scott Maw
|
|
|
|
executive vice president and chief financial officer
|
|
|
|
Signing on behalf of the registrant and as
principal financial officer
|
SECTION 1.
|
SUBLEASE OF AIRCRAFT
.
|
Sublessor:
CLOVERDALE SERVICES, LLC
|
|
Sublessee:
STARBUCKS CORPORATION
|
By:/s/Timothy Donlan
|
|
By:/s/ Troy Alstead
|
Name: Timothy Donlan
|
|
Name: Troy Alstead
|
Title: Manager
|
|
Title: Chief Financial Officer
|
Address:
c/o The McCutchen Group
925 Fourth Avenue, Suite 2288
Seattle, WA 98104
|
|
Address:
2401 Utah Avenue South
Seattle, WA 98134
United States of America
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended
March 30, 2014
of Starbucks Corporation;
|
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.
|
|
/s/ Howard Schultz
|
|
Howard Schultz
|
|
chairman, president and chief executive officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended
March 30, 2014
of Starbucks Corporation;
|
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.
|
|
/s/ Scott Maw
|
|
Scott Maw
|
|
executive vice president and chief financial officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Starbucks.
|
|
/s/ Howard Schultz
|
|
Howard Schultz
|
|
chairman, president and chief executive officer
|
|
/s/ Scott Maw
|
|
Scott Maw
|
|
executive vice president and chief financial officer
|