Washington
|
|
91-1325671
|
(State of Incorporation)
|
|
(IRS Employer ID)
|
Title of Each Class
|
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.001 par value per share
|
|
Nasdaq Global Select Market
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Large accelerated filer
|
x
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Accelerated filer
|
¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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PART I
|
||
Item 1
|
||
Item 1A
|
||
Item 1B
|
||
Item 2
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Item 3
|
||
Item 4
|
||
PART II
|
||
Item 5
|
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Item 6
|
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Item 7
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Item 7A
|
||
Item 8
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||
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Item 9
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Item 9A
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Item 9B
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PART III
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Item 10
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Item 11
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Item 12
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Item 13
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Item 14
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PART IV
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Item 15
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||
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Americas
|
|
As a% of
Total
Americas Stores
|
|
EMEA
|
|
As a% of
Total
EMEA Stores
|
|
CAP
|
|
As a% of
Total
CAP
Stores
|
|
All Other Segments
|
|
As a% of
Total
All Other Segments Stores
|
|
Total
|
|
As a% of
Total
Stores
|
||||||||||
Company-operated stores
|
8,395
|
|
|
59
|
%
|
|
817
|
|
|
38
|
%
|
|
1,132
|
|
|
24
|
%
|
|
369
|
|
|
90
|
%
|
|
10,713
|
|
|
50
|
%
|
Licensed stores
|
5,796
|
|
|
41
|
%
|
|
1,323
|
|
|
62
|
%
|
|
3,492
|
|
|
76
|
%
|
|
42
|
|
|
10
|
%
|
|
10,653
|
|
|
50
|
%
|
Total
|
14,191
|
|
|
100
|
%
|
|
2,140
|
|
|
100
|
%
|
|
4,624
|
|
|
100
|
%
|
|
411
|
|
|
100
|
%
|
|
21,366
|
|
|
100
|
%
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
Stores Open
as of
|
|||||
|
Sep 29, 2013
|
|
Opened
|
|
Closed
|
|
Net
|
|
Sep 28, 2014
|
|||||
Americas:
|
|
|
|
|
|
|
|
|
|
|||||
US
|
7,049
|
|
|
287
|
|
|
(33
|
)
|
|
254
|
|
|
7,303
|
|
Canada
|
940
|
|
|
56
|
|
|
(13
|
)
|
|
43
|
|
|
983
|
|
Brazil
|
70
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
89
|
|
Puerto Rico
|
19
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
20
|
|
Total Americas
|
8,078
|
|
|
363
|
|
|
(46
|
)
|
|
317
|
|
|
8,395
|
|
EMEA
(1)
:
|
|
|
|
|
|
|
|
|
|
|||||
UK
(1)
|
522
|
|
|
1
|
|
|
(17
|
)
|
|
(16
|
)
|
|
506
|
|
Germany
|
157
|
|
|
1
|
|
|
(6
|
)
|
|
(5
|
)
|
|
152
|
|
France
|
72
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
78
|
|
Switzerland
|
52
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
55
|
|
Austria
|
16
|
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
|
17
|
|
Netherlands
|
7
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
9
|
|
Total EMEA
|
826
|
|
|
15
|
|
|
(24
|
)
|
|
(9
|
)
|
|
817
|
|
CAP
(2)
:
|
|
|
|
|
|
|
|
|
|
|||||
China
|
614
|
|
|
217
|
|
|
(8
|
)
|
|
209
|
|
|
823
|
|
Thailand
|
174
|
|
|
31
|
|
|
(2
|
)
|
|
29
|
|
|
203
|
|
Singapore
|
94
|
|
|
16
|
|
|
(4
|
)
|
|
12
|
|
|
106
|
|
Total CAP
|
882
|
|
|
264
|
|
|
(14
|
)
|
|
250
|
|
|
1,132
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|||||
Teavana
|
338
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
365
|
|
Seattle's Best Coffee
|
15
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
|
—
|
|
Evolution Fresh
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
Total All Other Segments
|
357
|
|
|
27
|
|
|
(15
|
)
|
|
12
|
|
|
369
|
|
Total company-operated
|
10,143
|
|
|
669
|
|
|
(99
|
)
|
|
570
|
|
|
10,713
|
|
(1)
|
EMEA store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the second and fourth quarters of fiscal 2014.
|
(2)
|
CAP store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2014.
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|||
Beverages
|
73
|
%
|
|
74
|
%
|
|
75
|
%
|
Food
|
18
|
%
|
|
18
|
%
|
|
17
|
%
|
Packaged and single-serve coffees and teas
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
Other
(1)
|
5
|
%
|
|
4
|
%
|
|
4
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
"Other" primarily includes sales of ready-to-drink beverages, serveware and coffee-making equipment, among other items.
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
Stores Open
as of
|
|||||
|
Sep 29, 2013
|
|
Opened
|
|
Closed
|
|
Net
|
|
Sep 28, 2014
|
|||||
Americas:
|
|
|
|
|
|
|
|
|
|
|||||
US
|
4,408
|
|
|
361
|
|
|
(110
|
)
|
|
251
|
|
|
4,659
|
|
Mexico
|
403
|
|
|
31
|
|
|
—
|
|
|
31
|
|
|
434
|
|
Canada
|
397
|
|
|
69
|
|
|
(4
|
)
|
|
65
|
|
|
462
|
|
Other
|
207
|
|
|
37
|
|
|
(3
|
)
|
|
34
|
|
|
241
|
|
Total Americas
|
5,415
|
|
|
498
|
|
|
(117
|
)
|
|
381
|
|
|
5,796
|
|
EMEA
(1)
:
|
|
|
|
|
|
|
|
|
|
|||||
UK
(1)
|
242
|
|
|
47
|
|
|
(4
|
)
|
|
43
|
|
|
285
|
|
Turkey
|
193
|
|
|
32
|
|
|
(5
|
)
|
|
27
|
|
|
220
|
|
United Arab Emirates
|
107
|
|
|
12
|
|
|
(4
|
)
|
|
8
|
|
|
115
|
|
Spain
|
82
|
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
|
86
|
|
Kuwait
|
69
|
|
|
4
|
|
|
(1
|
)
|
|
3
|
|
|
72
|
|
Saudi Arabia
|
62
|
|
|
9
|
|
|
(4
|
)
|
|
5
|
|
|
67
|
|
Russia
|
65
|
|
|
24
|
|
|
(2
|
)
|
|
22
|
|
|
87
|
|
Other
|
323
|
|
|
74
|
|
|
(6
|
)
|
|
68
|
|
|
391
|
|
Total EMEA
|
1,143
|
|
|
207
|
|
|
(27
|
)
|
|
180
|
|
|
1,323
|
|
CAP
(2)
:
|
|
|
|
|
|
|
|
|
|
|||||
Japan
|
1,000
|
|
|
61
|
|
|
(1
|
)
|
|
60
|
|
|
1,060
|
|
China
|
403
|
|
|
146
|
|
|
(5
|
)
|
|
141
|
|
|
544
|
|
South Korea
|
559
|
|
|
159
|
|
|
(18
|
)
|
|
141
|
|
|
700
|
|
Taiwan
|
297
|
|
|
32
|
|
|
(6
|
)
|
|
26
|
|
|
323
|
|
Philippines
|
216
|
|
|
25
|
|
|
(1
|
)
|
|
24
|
|
|
240
|
|
Other
(2)
|
525
|
|
|
117
|
|
|
(17
|
)
|
|
100
|
|
|
625
|
|
Total CAP
|
3,000
|
|
|
540
|
|
|
(48
|
)
|
|
492
|
|
|
3,492
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|||||
Teavana
|
28
|
|
|
3
|
|
|
(2
|
)
|
|
1
|
|
|
29
|
|
Seattle's Best Coffee
|
38
|
|
|
1
|
|
|
(26
|
)
|
|
(25
|
)
|
|
13
|
|
Total All Other Segments
|
66
|
|
|
4
|
|
|
(28
|
)
|
|
(24
|
)
|
|
42
|
|
Total licensed
|
9,624
|
|
|
1,249
|
|
|
(220
|
)
|
|
1,029
|
|
|
10,653
|
|
(1)
|
EMEA store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the second and fourth quarters of fiscal 2014.
|
(2)
|
CAP store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2014.
|
Name
|
|
Age
|
|
Position
|
Howard Schultz
|
|
61
|
|
chairman, president and chief executive officer
|
Troy Alstead
|
|
51
|
|
chief operating officer
|
Cliff Burrows
|
|
55
|
|
group president, US, Americas and Teavana
|
John Culver
|
|
54
|
|
group president, China, Asia Pacific, Channel Development and Emerging Brands
|
Scott Maw
|
|
47
|
|
executive vice president, chief financial officer
|
Lucy Lee Helm
|
|
57
|
|
executive vice president, general counsel and secretary
|
•
|
Economic conditions in the US and certain international markets could adversely affect our business and financial results.
|
•
|
Our success depends substantially on the value of our brands and failure to preserve their value, either through our actions or those of our business partners, could have a negative impact on our financial results.
|
•
|
The unauthorized access, theft or destruction of customer or employee personal, financial or other data or of Starbucks proprietary or confidential information that is stored in our information systems could impact our reputation and brand and expose us to potential liability and loss of revenues.
|
•
|
Incidents involving food-borne illnesses, food tampering, food contamination or mislabeling, whether or not accurate, as well as adverse public or medical opinions about the health effects of consuming our products, could harm our business.
|
•
|
We may not be successful in implementing important strategic initiatives or effectively managing growth, which may have an adverse impact on our business and financial results.
|
•
|
successfully leveraging Starbucks brand portfolio outside the company-operated store base, including our increased focus on international licensed stores;
|
•
|
focusing on relevant product innovation and profitable new growth platforms, including retail tea, and achieving customer acceptance of these new products and platforms while maintaining demand for our current offerings;
|
•
|
continuing the growth of our Channel Development business;
|
•
|
balancing disciplined global store growth and existing store renovation while meeting target store-level unit economics in a given market;
|
•
|
executing a multi-channel advertising and marketing campaign to effectively communicate our message directly to Starbucks consumers and employees; and
|
•
|
strategic acquisitions, divestitures or joint ventures.
|
•
|
We face intense competition in each of our channels and markets, which could lead to reduced profitability.
|
•
|
We are highly dependent on the financial performance of our Americas operating segment.
|
•
|
We are increasingly dependent on the success of our CAP and EMEA operating segments in order to achieve our growth targets.
|
•
|
foreign currency exchange rate fluctuations, or requirements to transact in specific currencies;
|
•
|
changes or uncertainties in economic, legal, regulatory, social and political conditions in our markets;
|
•
|
interpretation and application of laws and regulations;
|
•
|
restrictive actions of foreign or US governmental authorities affecting trade and foreign investment, especially during periods of heightened tension between the US and such foreign governmental authorities, including protective measures such as export and customs duties and tariffs, government intervention favoring local competitors, and restrictions on the level of foreign ownership;
|
•
|
import or other business licensing requirements;
|
•
|
the enforceability of intellectual property and contract rights;
|
•
|
limitations on the repatriation of funds and foreign currency exchange restrictions due to current or new US and international regulations;
|
•
|
in developing economies, the growth rate in the portion of the population achieving sufficient levels of disposable income may not be as fast as we forecast;
|
•
|
difficulty in staffing, developing and managing foreign operations and supply chain logistics, including ensuring the consistency of product quality and service, due to governmental actions affecting supply chain logistics, distance, language and cultural differences, as well as challenges in recruiting and retaining high quality employees in local markets;
|
•
|
local laws that make it more expensive and complex to negotiate with, retain or terminate employees;
|
•
|
delays in store openings for reasons beyond our control, competition with locally relevant competitors or a lack of desirable real estate locations available for lease at reasonable rates, any of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revenues, operating income and earnings per share; and
|
•
|
disruption in energy supplies affecting our markets.
|
•
|
Increases in the cost of high-quality
arabica
coffee beans or other commodities or decreases in the availability of high-quality
arabica
coffee beans or other commodities could have an adverse impact on our business and financial results.
|
•
|
Our financial condition and results of operations are sensitive to, and may be adversely affected by, a number of factors, many of which are largely outside our control.
|
•
|
increases in labor costs such as increased health care costs, general market and minimum wage levels and workers' compensation insurance costs;
|
•
|
adverse outcomes of litigation; and
|
•
|
especially in our larger or fast growing markets, labor discord, war, terrorism (including incidents targeting us), political instability, boycotts, social unrest, and natural disasters, including health pandemics that lead to avoidance of public places or restrictions on public gatherings such as in our stores.
|
•
|
Interruption of our supply chain could affect our ability to produce or deliver our products and could negatively impact our business and profitability.
|
•
|
Failure to meet market expectations for our financial performance will likely adversely affect the market price and volatility of our stock.
|
•
|
The loss of key personnel or difficulties recruiting and retaining qualified personnel could adversely impact our business and financial results.
|
•
|
We rely heavily on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our ability to effectively operate our business and could adversely affect our financial results.
|
•
|
Failure to comply with applicable laws and regulations could harm our business and financial results.
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Location
|
Approximate Size
in Square Feet |
|
Purpose
|
|
Rancho Cucamonga, CA
|
265,000
|
|
|
Manufacturing
|
San Francisco, CA
|
79,000
|
|
|
Warehouse and distribution
|
Augusta, GA
|
131,000
|
|
|
Manufacturing
|
Minden, NV (Carson Valley)
|
360,000
|
|
|
Roasting and distribution
|
York, PA
|
1,035,000
|
|
|
Roasting, distribution and warehouse
|
Gaston, SC (Sandy Run)
|
117,000
|
|
|
Roasting and distribution
|
Lebanon, TN
|
680,000
|
|
|
Distribution center
|
Auburn, WA
|
491,000
|
|
|
Warehouse and distribution
|
Kent, WA
|
510,000
|
|
|
Roasting and distribution
|
Seattle, WA
|
1,001,000
|
|
|
Corporate administrative
|
Amsterdam, Netherlands
|
97,000
|
|
|
Roasting and distribution
|
Samutprakarn, Thailand
|
80,000
|
|
|
Warehouse and distribution
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
|
High
|
|
Low
|
|
Cash Dividends
Declared |
||||||
Fiscal 2014:
|
|
|
|
|
|
||||||
Fourth Quarter
|
$
|
80.64
|
|
|
$
|
73.78
|
|
|
$
|
0.32
|
|
Third Quarter
|
78.35
|
|
|
67.93
|
|
|
0.26
|
|
|||
Second Quarter
|
78.83
|
|
|
68.67
|
|
|
0.26
|
|
|||
First Quarter
|
82.50
|
|
|
74.45
|
|
|
0.26
|
|
|||
Fiscal 2013:
|
|
|
|
|
|
||||||
Fourth Quarter
|
$
|
77.84
|
|
|
$
|
65.82
|
|
|
$
|
0.26
|
|
Third Quarter
|
67.48
|
|
|
56.65
|
|
|
0.21
|
|
|||
Second Quarter
|
58.97
|
|
|
52.39
|
|
|
0.21
|
|
|||
First Quarter
|
54.90
|
|
|
44.27
|
|
|
0.21
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|||||
June 30, 2014 — July 27, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
18,132,067
|
|
July 28, 2014 — August 24, 2014
|
|
789,975
|
|
|
77.27
|
|
|
789,975
|
|
|
17,342,092
|
|
|
August 25, 2014 — September 28, 2014
|
|
1,484,884
|
|
|
76.52
|
|
|
1,484,884
|
|
|
15,857,208
|
|
|
Total
|
|
2,274,859
|
|
|
$
|
76.78
|
|
|
2,274,859
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the fourth 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 15, 2012
, we publicly announced the authorization of up to
25 million
shares. This authorization has no expiration date.
|
|
Sep 27, 2009
|
|
Oct 3, 2010
|
|
Oct 2, 2011
|
|
Sep 30, 2012
|
|
Sep 29, 2013
|
|
Sep 28, 2014
|
||||||||||||
Starbucks Corporation
|
$
|
100.00
|
|
|
$
|
132.04
|
|
|
$
|
192.82
|
|
|
$
|
266.00
|
|
|
$
|
411.41
|
|
|
$
|
405.56
|
|
S&P 500
|
100.00
|
|
|
110.16
|
|
|
111.42
|
|
|
145.07
|
|
|
173.13
|
|
|
207.30
|
|
||||||
NASDAQ Composite
|
100.00
|
|
|
112.55
|
|
|
116.28
|
|
|
153.12
|
|
|
189.49
|
|
|
227.09
|
|
||||||
S&P Consumer Discretionary
|
100.00
|
|
|
123.63
|
|
|
131.26
|
|
|
179.35
|
|
|
236.45
|
|
|
264.29
|
|
Item 6.
|
Selected Financial Data
|
As of and for the Fiscal Year Ended
(1)
|
Sep 28,
2014
(52 Wks)
|
|
Sep 29,
2013 (52 Wks) |
|
Sep 30,
2012 (52 Wks) |
|
Oct 2,
2011 (52 Wks) |
|
Oct 3,
2010 (53 Wks) |
|||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Company-operated stores
|
$
|
12,977.9
|
|
|
$
|
11,793.2
|
|
|
$
|
10,534.5
|
|
|
$
|
9,632.4
|
|
|
$
|
8,963.5
|
|
|
Licensed stores
|
1,588.6
|
|
|
1,360.5
|
|
|
1,210.3
|
|
|
1,007.5
|
|
|
875.2
|
|
||||||
CPG, foodservice and other
(2)
|
1,881.3
|
|
|
1,713.1
|
|
|
1,532.0
|
|
|
1,060.5
|
|
|
868.7
|
|
||||||
Total net revenues
(2)
|
$
|
16,447.8
|
|
|
$
|
14,866.8
|
|
|
$
|
13,276.8
|
|
|
$
|
11,700.4
|
|
|
$
|
10,707.4
|
|
|
Operating income/(loss)
(3,4)
|
$
|
3,081.1
|
|
|
$
|
(325.4
|
)
|
|
$
|
1,997.4
|
|
|
$
|
1,728.5
|
|
|
$
|
1,419.4
|
|
|
Net earnings including noncontrolling interests
(3,4)
|
2,067.7
|
|
|
8.8
|
|
|
1,384.7
|
|
|
1,248.0
|
|
|
948.3
|
|
||||||
Net earnings attributable to noncontrolling interests
|
(0.4
|
)
|
|
0.5
|
|
|
0.9
|
|
|
2.3
|
|
|
2.7
|
|
||||||
Net earnings attributable to Starbucks
(3,4)
|
2,068.1
|
|
|
8.3
|
|
|
1,383.8
|
|
|
1,245.7
|
|
|
945.6
|
|
||||||
EPS — diluted
(3,4)
|
2.71
|
|
|
0.01
|
|
|
1.79
|
|
|
1.62
|
|
|
1.24
|
|
||||||
Cash dividends declared per share
|
1.10
|
|
|
0.89
|
|
|
0.72
|
|
|
0.56
|
|
|
0.36
|
|
||||||
Net cash provided by operating activities
|
607.8
|
|
|
2,908.3
|
|
|
1,750.3
|
|
|
1,612.4
|
|
|
1,704.9
|
|
||||||
Capital expenditures (additions to property, plant and equipment)
|
1,160.9
|
|
|
1,151.2
|
|
|
856.2
|
|
|
531.9
|
|
|
440.7
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets
|
$
|
10,752.9
|
|
|
$
|
11,516.7
|
|
|
$
|
8,219.2
|
|
|
$
|
7,360.4
|
|
|
$
|
6,385.9
|
|
|
Long-term debt (including current portion)
|
2,048.3
|
|
|
1,299.4
|
|
|
549.6
|
|
|
549.5
|
|
|
549.4
|
|
||||||
Shareholders’ equity
|
5,272.0
|
|
|
4,480.2
|
|
|
5,109.0
|
|
|
4,384.9
|
|
|
3,674.7
|
|
(1)
|
Our fiscal year ends on the Sunday closest to September 30. The fiscal year ended on October 3, 2010 included 53 weeks with the 53
rd
week falling in our fourth fiscal quarter.
|
(2)
|
For fiscal 2013 and 2012, we reclassified certain fees related to our US and Seattle's Best Coffee foodservice operations, totaling $25.4 million and $22.7 million, respectively, from other operating expenses to foodservice revenues included in CPG, foodservice and other net revenues. This correction of an immaterial error is discussed further in
Note 1
, Summary of Significant Accounting Policies, to the consolidated financial statements included in Item 8 of Part II of this 10-K.
|
(3)
|
Fiscal 2010 results include pretax restructuring charges of $53.0 million.
|
(4)
|
Fiscal 2013 results include a pretax charge of
$2,784.1 million
resulting from the conclusion of our arbitration with Kraft Foods Global, Inc. The impact of this charge to net earnings attributable to Starbucks and diluted EPS, net of the related tax benefit, was $1,713.1 million and $2.25 per share, respectively.
|
Fiscal Year Ended
|
Sep 28,
2014 (52 Wks) |
|
Sep 29,
2013 (52 Wks) |
|
Sep 30,
2012 (52 Wks) |
|
Oct 2,
2011 (52 Wks) |
|
Oct 3,
2010 (53 Wks) |
||||||
Percentage change in comparable store sales
(5)
|
|
|
|
|
|
|
|
|
|
||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
6
|
%
|
|
7
|
%
|
|
8
|
%
|
|
8
|
%
|
|
7
|
%
|
|
Change in transactions
|
2
|
%
|
|
5
|
%
|
|
6
|
%
|
|
5
|
%
|
|
3
|
%
|
|
Change in ticket
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
3
|
%
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3
|
%
|
|
5
|
%
|
|
Change in transactions
|
3
|
%
|
|
2
|
%
|
|
—
|
%
|
|
3
|
%
|
|
6
|
%
|
|
Change in ticket
|
2
|
%
|
|
(2
|
)%
|
|
—
|
%
|
|
—
|
%
|
|
(1
|
)%
|
|
China/Asia Pacific
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
7
|
%
|
|
9
|
%
|
|
15
|
%
|
|
22
|
%
|
|
11
|
%
|
|
Change in transactions
|
6
|
%
|
|
7
|
%
|
|
11
|
%
|
|
20
|
%
|
|
9
|
%
|
|
Change in ticket
|
—
|
%
|
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
6
|
%
|
|
7
|
%
|
|
7
|
%
|
|
8
|
%
|
|
7
|
%
|
|
Change in transactions
|
3
|
%
|
|
5
|
%
|
|
6
|
%
|
|
6
|
%
|
|
4
|
%
|
|
Change in ticket
|
3
|
%
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
3
|
%
|
(5)
|
Includes only Starbucks
®
company-operated stores open 13 months or longer. For fiscal 2010, comparable store sales percentages were calculated excluding the 53
rd
week. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates.
|
As of and for the Fiscal Year Ended
|
Sep 28,
2014 (52 Wks) |
|
Sep 29,
2013 (52 Wks) |
|
Sep 30,
2012 (52 Wks) |
|
Oct 2,
2011 (52 Wks) |
|
Oct 3,
2010 (53 Wks) |
||||||
Net stores opened/(closed) during the year:
|
|
|
|
|
|
|
|
|
|
||||||
Americas
(6)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
317
|
|
|
276
|
|
|
228
|
|
|
32
|
|
|
(32
|
)
|
|
Licensed stores
|
381
|
|
|
404
|
|
|
280
|
|
|
215
|
|
|
101
|
|
|
EMEA
(7)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(9
|
)
|
|
(29
|
)
|
|
10
|
|
|
25
|
|
|
(64
|
)
|
|
Licensed stores
|
180
|
|
|
129
|
|
|
101
|
|
|
79
|
|
|
100
|
|
|
China/Asia Pacific
(8)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
250
|
|
|
239
|
|
|
152
|
|
|
74
|
|
|
31
|
|
|
Licensed stores
|
492
|
|
|
349
|
|
|
296
|
|
|
192
|
|
|
78
|
|
|
All Other Segments
(9)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
12
|
|
|
343
|
|
|
—
|
|
|
6
|
|
|
(1
|
)
|
|
Licensed stores
(10)
|
(24
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
(478
|
)
|
|
10
|
|
|
Total
|
1,599
|
|
|
1,701
|
|
|
1,063
|
|
|
145
|
|
|
223
|
|
|
Stores open at year end:
|
|
|
|
|
|
|
|
|
|
||||||
Americas
(6)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
8,395
|
|
|
8,078
|
|
|
7,802
|
|
|
7,574
|
|
|
7,542
|
|
|
Licensed stores
|
5,796
|
|
|
5,415
|
|
|
5,011
|
|
|
4,731
|
|
|
4,516
|
|
|
EMEA
(7)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
817
|
|
|
826
|
|
|
855
|
|
|
845
|
|
|
820
|
|
|
Licensed stores
|
1,323
|
|
|
1,143
|
|
|
1,014
|
|
|
913
|
|
|
834
|
|
|
China/Asia Pacific
(8)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
1,132
|
|
|
882
|
|
|
643
|
|
|
491
|
|
|
417
|
|
|
Licensed stores
|
3,492
|
|
|
3,000
|
|
|
2,651
|
|
|
2,355
|
|
|
2,163
|
|
|
All Other Segments
(9)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
369
|
|
|
357
|
|
|
14
|
|
|
14
|
|
|
8
|
|
|
Licensed stores
(10)
|
42
|
|
|
66
|
|
|
76
|
|
|
80
|
|
|
558
|
|
|
Total
|
21,366
|
|
|
19,767
|
|
|
18,066
|
|
|
17,003
|
|
|
16,858
|
|
(6)
|
Americas store data has been adjusted for the sale of store locations in Chile to a joint venture partner in the fourth quarter of fiscal 2013 by reclassifying historical information from company-operated stores to licensed stores, and to exclude Seattle's Best Coffee and Evolution Fresh, which are reported within All Other Segments.
|
(7)
|
EMEA store data has been adjusted for the acquisition of store locations in Austria and Switzerland in the fourth quarter of fiscal 2011 by reclassifying historical information from licensed stores to company-operated stores, and the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2012 and in the second and fourth quarters of fiscal 2014.
|
(8)
|
CAP store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2014.
|
(9)
|
Includes 337 Teavana
®
stores acquired in the second quarter of fiscal 2013.
|
(10)
|
Includes the closure of 475 licensed Seattle’s Best Coffee
®
locations in Borders Bookstores during fiscal 2011.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Total net revenues increased
11%
to
$16.4 billion
in fiscal
2014
compared to
$14.9 billion
in fiscal
2013
.
|
•
|
Global comparable store sales grew 6% driven by a 3% increase in the number of transactions and a 3% increase in average ticket.
|
•
|
Consolidated operating income increased to
$3.1 billion
in fiscal
2014
compared to an operating loss of
$325.4 million
in fiscal
2013
. Fiscal 2014 operating margin was
18.7%
compared to
(2.2)%
in fiscal
2013
. The operating margin expansion was primarily due to lapping the $2.8 billion Kraft litigation charge in the prior year. The remaining change in operating margin was primarily driven by sales leverage and lower commodity costs, mainly coffee.
|
•
|
Earnings per share for fiscal
2014
increased to
$2.71
, compared to EPS of
$0.01
in fiscal
2013
, primarily due to lapping the Kraft litigation charge, which reduced EPS by $2.25 per share in fiscal 2013. The remaining increase was primarily due to the improved sales leverage and lower commodity costs, as well as a gain on the sale of our equity interest in our Malaysia joint venture.
|
•
|
Cash flows from operations were
$607.8 million
in fiscal
2014
compared to
$2.9 billion
in fiscal
2013
. The decline in fiscal 2014 was driven by the payment of $2.8 billion during the year for the Kraft arbitration matter. This was partially offset by cash provided by operating activities of $3.4 billion resulting from strong earnings and favorable changes in working capital accounts in the current year.
|
•
|
Capital expenditures were
$1.2 billion
in fiscal
2014
and fiscal
2013
.
|
•
|
We returned
$1.6 billion
to our shareholders in fiscal 2014 through dividends and share repurchases.
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
12,977.9
|
|
|
$
|
11,793.2
|
|
|
10.0
|
%
|
Licensed stores
|
1,588.6
|
|
|
1,360.5
|
|
|
16.8
|
|
||
CPG, foodservice and other
|
1,881.3
|
|
|
1,713.1
|
|
|
9.8
|
|
||
Total net revenues
|
$
|
16,447.8
|
|
|
$
|
14,866.8
|
|
|
10.6
|
%
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
|
|
|
|
|
% of Total
Net Revenues
|
||||||||
Cost of sales including occupancy costs
|
$
|
6,858.8
|
|
|
$
|
6,382.3
|
|
|
41.7
|
%
|
|
42.9
|
%
|
Store operating expenses
|
4,638.2
|
|
|
4,286.1
|
|
|
28.2
|
|
|
28.8
|
|
||
Other operating expenses
|
457.3
|
|
|
431.8
|
|
|
2.8
|
|
|
2.9
|
|
||
Depreciation and amortization expenses
|
709.6
|
|
|
621.4
|
|
|
4.3
|
|
|
4.2
|
|
||
General and administrative expenses
|
991.3
|
|
|
937.9
|
|
|
6.0
|
|
|
6.3
|
|
||
Litigation charge
|
(20.2
|
)
|
|
2,784.1
|
|
|
(0.1
|
)
|
|
18.7
|
|
||
Total operating expenses
|
13,635.0
|
|
|
15,443.6
|
|
|
82.9
|
|
|
103.9
|
|
||
Income from equity investees
|
268.3
|
|
|
251.4
|
|
|
1.6
|
|
|
1.7
|
|
||
Operating income/(loss)
|
$
|
3,081.1
|
|
|
$
|
(325.4
|
)
|
|
18.7
|
%
|
|
(2.2
|
)%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
35.7
|
%
|
|
36.3
|
%
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
|
|
|
|
|
% of Total
Net Revenues
|
||||||||
Operating income/(loss)
|
$
|
3,081.1
|
|
|
$
|
(325.4
|
)
|
|
18.7
|
%
|
|
(2.2
|
)%
|
Interest income and other, net
|
142.7
|
|
|
123.6
|
|
|
0.9
|
|
|
0.8
|
|
||
Interest expense
|
(64.1
|
)
|
|
(28.1
|
)
|
|
(0.4
|
)
|
|
(0.2
|
)
|
||
Earnings/(loss) before income taxes
|
3,159.7
|
|
|
(229.9
|
)
|
|
19.2
|
|
|
(1.5
|
)
|
||
Income taxes
|
1,092.0
|
|
|
(238.7
|
)
|
|
6.6
|
|
|
(1.6
|
)
|
||
Net earnings including noncontrolling interests
|
2,067.7
|
|
|
8.8
|
|
|
12.6
|
|
|
0.1
|
|
||
Net earnings attributable to noncontrolling interests
|
(0.4
|
)
|
|
0.5
|
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
2,068.1
|
|
|
$
|
8.3
|
|
|
12.6
|
%
|
|
0.1
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
34.6
|
%
|
|
103.8
|
%
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
10,866.5
|
|
|
$
|
10,038.3
|
|
|
90.7
|
%
|
|
91.3
|
%
|
Licensed stores
|
1,074.9
|
|
|
915.4
|
|
|
9.0
|
|
|
8.3
|
|
||
CPG, foodservice and other
|
39.1
|
|
|
47.1
|
|
|
0.3
|
|
|
0.4
|
|
||
Total net revenues
|
11,980.5
|
|
|
11,000.8
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
4,487.0
|
|
|
4,214.9
|
|
|
37.5
|
|
|
38.3
|
|
||
Store operating expenses
|
3,946.8
|
|
|
3,710.2
|
|
|
32.9
|
|
|
33.7
|
|
||
Other operating expenses
|
100.4
|
|
|
96.9
|
|
|
0.8
|
|
|
0.9
|
|
||
Depreciation and amortization expenses
|
469.5
|
|
|
429.3
|
|
|
3.9
|
|
|
3.9
|
|
||
General and administrative expenses
|
167.8
|
|
|
186.7
|
|
|
1.4
|
|
|
1.7
|
|
||
Total operating expenses
|
9,171.5
|
|
|
8,638.0
|
|
|
76.6
|
|
|
78.5
|
|
||
Income from equity investees
|
—
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
||
Operating income
|
$
|
2,809.0
|
|
|
$
|
2,365.2
|
|
|
23.4
|
%
|
|
21.5
|
%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
36.3
|
%
|
|
37.0
|
%
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
|
|
|
|
|
As a % of EMEA
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
1,013.8
|
|
|
$
|
932.8
|
|
|
78.3
|
%
|
|
80.4
|
%
|
Licensed stores
|
238.4
|
|
|
190.3
|
|
|
18.4
|
|
|
16.4
|
|
||
CPG, foodservice and other
|
42.6
|
|
|
36.9
|
|
|
3.3
|
|
|
3.2
|
|
||
Total net revenues
|
1,294.8
|
|
|
1,160.0
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
646.8
|
|
|
590.9
|
|
|
50.0
|
|
|
50.9
|
|
||
Store operating expenses
|
365.8
|
|
|
339.4
|
|
|
28.3
|
|
|
29.3
|
|
||
Other operating expenses
|
48.2
|
|
|
38.5
|
|
|
3.7
|
|
|
3.3
|
|
||
Depreciation and amortization expenses
|
59.4
|
|
|
55.5
|
|
|
4.6
|
|
|
4.8
|
|
||
General and administrative expenses
|
59.1
|
|
|
71.9
|
|
|
4.6
|
|
|
6.2
|
|
||
Total operating expenses
|
1,179.3
|
|
|
1,096.2
|
|
|
91.1
|
|
|
94.5
|
|
||
Income from equity investees
|
3.7
|
|
|
0.4
|
|
|
0.3
|
|
|
—
|
|
||
Operating income
|
$
|
119.2
|
|
|
$
|
64.2
|
|
|
9.2
|
%
|
|
5.5
|
%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
36.1
|
%
|
|
36.4
|
%
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
|
|
|
|
|
As a % of China/Asia Pacific
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
859.4
|
|
|
$
|
671.7
|
|
|
76.1
|
%
|
|
73.2
|
%
|
Licensed stores
|
270.2
|
|
|
245.3
|
|
|
23.9
|
|
|
26.8
|
|
||
Total net revenues
|
1,129.6
|
|
|
917.0
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
547.4
|
|
|
449.5
|
|
|
48.5
|
|
|
49.0
|
|
||
Store operating expenses
|
221.1
|
|
|
170.0
|
|
|
19.6
|
|
|
18.5
|
|
||
Other operating expenses
|
48.0
|
|
|
46.1
|
|
|
4.2
|
|
|
5.0
|
|
||
Depreciation and amortization expenses
|
46.1
|
|
|
33.8
|
|
|
4.1
|
|
|
3.7
|
|
||
General and administrative expenses
|
58.5
|
|
|
48.4
|
|
|
5.2
|
|
|
5.3
|
|
||
Total operating expenses
|
921.1
|
|
|
747.8
|
|
|
81.5
|
|
|
81.5
|
|
||
Income from equity investees
|
164.0
|
|
|
152.0
|
|
|
14.5
|
|
|
16.6
|
|
||
Operating income
|
$
|
372.5
|
|
|
$
|
321.2
|
|
|
33.0
|
%
|
|
35.0
|
%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
25.7
|
%
|
|
25.3
|
%
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
CPG
|
$
|
1,178.8
|
|
|
$
|
1,056.0
|
|
|
76.2
|
%
|
|
75.5
|
%
|
Foodservice
|
367.2
|
|
|
342.9
|
|
|
23.8
|
|
|
24.5
|
|
||
Total net revenues
|
1,546.0
|
|
|
1,398.9
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
882.4
|
|
|
878.4
|
|
|
57.1
|
|
|
62.8
|
|
||
Other operating expenses
|
187.0
|
|
|
179.4
|
|
|
12.1
|
|
|
12.8
|
|
||
Depreciation and amortization expenses
|
1.8
|
|
|
1.1
|
|
|
0.1
|
|
|
0.1
|
|
||
General and administrative expenses
|
18.2
|
|
|
21.1
|
|
|
1.2
|
|
|
1.5
|
|
||
Total operating expenses
|
1,089.4
|
|
|
1,080.0
|
|
|
70.5
|
|
|
77.2
|
|
||
Income from equity investees
|
100.6
|
|
|
96.6
|
|
|
6.5
|
|
|
6.9
|
|
||
Operating income
|
$
|
557.2
|
|
|
$
|
415.5
|
|
|
36.0
|
%
|
|
29.7
|
%
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
% Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
238.2
|
|
|
$
|
150.4
|
|
|
58.4
|
%
|
Licensed stores
|
5.1
|
|
|
9.5
|
|
|
(46.3
|
)
|
||
CPG, foodservice and other
|
253.6
|
|
|
230.2
|
|
|
10.2
|
|
||
Total net revenues
|
496.9
|
|
|
390.1
|
|
|
27.4
|
|
||
Cost of sales
|
287.2
|
|
|
239.8
|
|
|
19.8
|
|
||
Store operating expenses
|
104.5
|
|
|
66.5
|
|
|
57.1
|
|
||
Other operating expenses
|
74.6
|
|
|
71.7
|
|
|
4.0
|
|
||
Depreciation and amortization expenses
|
15.2
|
|
|
11.7
|
|
|
29.9
|
|
||
General and administrative expenses
|
42.2
|
|
|
34.9
|
|
|
20.9
|
|
||
Total operating expenses
|
523.7
|
|
|
424.6
|
|
|
23.3
|
|
||
Operating loss
|
$
|
(26.8
|
)
|
|
$
|
(34.5
|
)
|
|
(22.3
|
)%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
%
Change |
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
11,793.2
|
|
|
$
|
10,534.5
|
|
|
11.9
|
%
|
Licensed stores
|
1,360.5
|
|
|
1,210.3
|
|
|
12.4
|
|
||
CPG, foodservice and other
|
1,713.1
|
|
|
1,532.0
|
|
|
11.8
|
|
||
Total net revenues
|
$
|
14,866.8
|
|
|
$
|
13,276.8
|
|
|
12.0
|
%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
|
|
|
|
|
% of Total
Net Revenues
|
||||||||
Cost of sales including occupancy costs
|
$
|
6,382.3
|
|
|
$
|
5,813.3
|
|
|
42.9
|
%
|
|
43.8
|
%
|
Store operating expenses
|
4,286.1
|
|
|
3,918.1
|
|
|
28.8
|
|
|
29.5
|
|
||
Other operating expenses
|
431.8
|
|
|
407.2
|
|
|
2.9
|
|
|
3.1
|
|
||
Depreciation and amortization expenses
|
621.4
|
|
|
550.3
|
|
|
4.2
|
|
|
4.1
|
|
||
General and administrative expenses
|
937.9
|
|
|
801.2
|
|
|
6.3
|
|
|
6.0
|
|
||
Litigation charge
|
2,784.1
|
|
|
—
|
|
|
18.7
|
|
|
—
|
|
||
Total operating expenses
|
15,443.6
|
|
|
11,490.1
|
|
|
103.9
|
|
|
86.5
|
|
||
Income from equity investees
|
251.4
|
|
|
210.7
|
|
|
1.7
|
|
|
1.6
|
|
||
Operating income/(loss)
|
$
|
(325.4
|
)
|
|
$
|
1,997.4
|
|
|
(2.2
|
)%
|
|
15.0
|
%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
36.3
|
%
|
|
37.2
|
%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
|
|
|
|
|
% of Total
Net Revenues
|
||||||||
Operating income/(loss)
|
$
|
(325.4
|
)
|
|
$
|
1,997.4
|
|
|
(2.2
|
)%
|
|
15.0
|
%
|
Interest income and other, net
|
123.6
|
|
|
94.4
|
|
|
0.8
|
|
|
0.7
|
|
||
Interest expense
|
(28.1
|
)
|
|
(32.7
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Earnings/(loss) before income taxes
|
(229.9
|
)
|
|
2,059.1
|
|
|
(1.5
|
)
|
|
15.5
|
|
||
Income taxes
|
(238.7
|
)
|
|
674.4
|
|
|
(1.6
|
)
|
|
5.1
|
|
||
Net earnings including noncontrolling interests
|
8.8
|
|
|
1,384.7
|
|
|
0.1
|
|
|
10.4
|
|
||
Net earnings attributable to noncontrolling interests
|
0.5
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
8.3
|
|
|
$
|
1,383.8
|
|
|
0.1
|
%
|
|
10.4
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
103.8
|
%
|
|
32.8
|
%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
|
|
|
|
|
As a % of Americas Total
Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
10,038.3
|
|
|
$
|
9,077.0
|
|
|
91.3
|
%
|
|
91.4
|
%
|
Licensed stores
|
915.4
|
|
|
825.8
|
|
|
8.3
|
|
|
8.3
|
|
||
CPG, foodservice and other
|
47.1
|
|
|
33.2
|
|
|
0.4
|
|
|
0.3
|
|
||
Total net revenues
|
11,000.8
|
|
|
9,936.0
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
4,214.9
|
|
|
3,885.5
|
|
|
38.3
|
|
|
39.1
|
|
||
Store operating expenses
|
3,710.2
|
|
|
3,427.8
|
|
|
33.7
|
|
|
34.5
|
|
||
Other operating expenses
|
96.9
|
|
|
83.8
|
|
|
0.9
|
|
|
0.8
|
|
||
Depreciation and amortization expenses
|
429.3
|
|
|
392.4
|
|
|
3.9
|
|
|
3.9
|
|
||
General and administrative expenses
|
186.7
|
|
|
128.2
|
|
|
1.7
|
|
|
1.3
|
|
||
Total operating expenses
|
8,638.0
|
|
|
7,917.7
|
|
|
78.5
|
|
|
79.7
|
|
||
Income from equity investees
|
2.4
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
||
Operating income
|
$
|
2,365.2
|
|
|
$
|
2,020.4
|
|
|
21.5
|
%
|
|
20.3
|
%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
37.0
|
%
|
|
37.8
|
%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
|
|
|
|
|
As a % of EMEA Total
Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
932.8
|
|
|
$
|
968.3
|
|
|
80.4
|
%
|
|
84.8
|
%
|
Licensed stores
|
190.3
|
|
|
139.5
|
|
|
16.4
|
|
|
12.2
|
|
||
CPG, foodservice and other
|
36.9
|
|
|
33.5
|
|
|
3.2
|
|
|
2.9
|
|
||
Total net revenues
|
1,160.0
|
|
|
1,141.3
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
590.9
|
|
|
597.3
|
|
|
50.9
|
|
|
52.3
|
|
||
Store operating expenses
|
339.4
|
|
|
371.1
|
|
|
29.3
|
|
|
32.5
|
|
||
Other operating expenses
|
38.5
|
|
|
33.6
|
|
|
3.3
|
|
|
2.9
|
|
||
Depreciation and amortization expenses
|
55.5
|
|
|
57.1
|
|
|
4.8
|
|
|
5.0
|
|
||
General and administrative expenses
|
71.9
|
|
|
75.7
|
|
|
6.2
|
|
|
6.6
|
|
||
Total operating expenses
|
1,096.2
|
|
|
1,134.8
|
|
|
94.5
|
|
|
99.4
|
|
||
Income from equity investees
|
0.4
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||
Operating income
|
$
|
64.2
|
|
|
$
|
6.8
|
|
|
5.5
|
%
|
|
0.6
|
%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
36.4
|
%
|
|
38.3
|
%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
|
|
|
|
|
As a % of CAP Total
Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
671.7
|
|
|
$
|
489.2
|
|
|
73.2
|
%
|
|
67.8
|
%
|
Licensed stores
|
245.3
|
|
|
232.2
|
|
|
26.8
|
|
|
32.2
|
|
||
Total net revenues
|
917.0
|
|
|
721.4
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
449.5
|
|
|
362.8
|
|
|
49.0
|
|
|
50.3
|
|
||
Store operating expenses
|
170.0
|
|
|
119.2
|
|
|
18.5
|
|
|
16.5
|
|
||
Other operating expenses
|
46.1
|
|
|
47.0
|
|
|
5.0
|
|
|
6.5
|
|
||
Depreciation and amortization expenses
|
33.8
|
|
|
23.2
|
|
|
3.7
|
|
|
3.2
|
|
||
General and administrative expenses
|
48.4
|
|
|
39.0
|
|
|
5.3
|
|
|
5.4
|
|
||
Total operating expenses
|
747.8
|
|
|
591.2
|
|
|
81.5
|
|
|
82.0
|
|
||
Income from equity investees
|
152.0
|
|
|
122.4
|
|
|
16.6
|
|
|
17.0
|
|
||
Operating income
|
$
|
321.2
|
|
|
$
|
252.6
|
|
|
35.0
|
%
|
|
35.0
|
%
|
Store operating expenses as a percentage of company-operated store revenues
|
|
|
|
|
25.3
|
%
|
|
24.4
|
%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
CPG
|
$
|
1,056.0
|
|
|
$
|
952.1
|
|
|
75.5
|
%
|
|
74.8
|
%
|
Foodservice
|
342.9
|
|
|
320.9
|
|
|
24.5
|
|
|
25.2
|
|
||
Total net revenues
|
1,398.9
|
|
|
1,273.0
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
878.4
|
|
|
827.6
|
|
|
62.8
|
|
|
65.0
|
|
||
Other operating expenses
|
179.4
|
|
|
171.9
|
|
|
12.8
|
|
|
13.5
|
|
||
Depreciation and amortization expenses
|
1.1
|
|
|
1.3
|
|
|
0.1
|
|
|
0.1
|
|
||
General and administrative expenses
|
21.1
|
|
|
17.0
|
|
|
1.5
|
|
|
1.3
|
|
||
Total operating expenses
|
1,080.0
|
|
|
1,017.8
|
|
|
77.2
|
|
|
80.0
|
|
||
Income from equity investees
|
96.6
|
|
|
85.2
|
|
|
6.9
|
|
|
6.7
|
|
||
Operating income
|
$
|
415.5
|
|
|
$
|
340.4
|
|
|
29.7
|
%
|
|
26.7
|
%
|
Fiscal Year Ended
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
150.4
|
|
|
$
|
—
|
|
|
nm
|
|
Licensed stores
|
9.5
|
|
|
12.8
|
|
|
(25.8
|
)%
|
||
CPG, foodservice and other
|
230.2
|
|
|
192.3
|
|
|
19.7
|
|
||
Total net revenues
|
390.1
|
|
|
205.1
|
|
|
90.2
|
|
||
Cost of sales
|
239.8
|
|
|
140.1
|
|
|
71.2
|
|
||
Store operating expenses
|
66.5
|
|
|
—
|
|
|
nm
|
|
||
Other operating expenses
|
71.7
|
|
|
70.9
|
|
|
1.1
|
|
||
Depreciation and amortization expenses
|
11.7
|
|
|
2.5
|
|
|
368.0
|
|
||
General and administrative expenses
|
34.9
|
|
|
19.7
|
|
|
77.2
|
|
||
Total operating expenses
|
424.6
|
|
|
233.2
|
|
|
82.1
|
|
||
Income from equity investees
|
—
|
|
|
0.7
|
|
|
(100.0
|
)
|
||
Operating loss
|
$
|
(34.5
|
)
|
|
$
|
(27.4
|
)
|
|
25.9
|
%
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
(1)
|
Total
|
|
Less than 1
Year
|
|
1 - 3
Years
|
|
3 - 5
Years
|
|
More than
5 Years
|
||||||||||
Operating lease obligations
(2)
|
$
|
4,957.9
|
|
|
$
|
925.6
|
|
|
$
|
1,522.9
|
|
|
$
|
1,007.1
|
|
|
$
|
1,502.3
|
|
Debt obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments
|
2,050.0
|
|
|
—
|
|
|
950.0
|
|
|
350.0
|
|
|
750.0
|
|
|||||
Interest payments
(3)
|
417.7
|
|
|
73.8
|
|
|
145.8
|
|
|
68.2
|
|
|
129.9
|
|
|||||
Purchase obligations
(4)
|
1,254.7
|
|
|
848.9
|
|
|
365.7
|
|
|
27.7
|
|
|
12.4
|
|
|||||
Other obligations
(5)
|
55.1
|
|
|
2.7
|
|
|
5.6
|
|
|
5.3
|
|
|
41.5
|
|
|||||
Total
|
$
|
8,735.4
|
|
|
$
|
1,851.0
|
|
|
$
|
2,990.0
|
|
|
$
|
1,458.3
|
|
|
$
|
2,436.1
|
|
(1)
|
Income tax liabilities for uncertain tax positions were excluded as we are not able to make a reasonably reliable estimate of the amount and period of related future payments. As of
September 28, 2014
, we had
$121.0 million
of gross unrecognized tax benefits for uncertain tax positions, which includes accrued interest and penalties.
|
(2)
|
Amounts include direct lease obligations, excluding any taxes, insurance and other related expenses.
|
(3)
|
Amounts exclude any gain or loss upon settlement of related interest rate swap agreements, which are described further in
Note 3
, Derivative Financial Instruments.
|
(4)
|
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on Starbucks and that specify all significant terms. Green coffee purchase commitments comprise
90%
of total purchase obligations.
|
(5)
|
Other obligations include other long-term liabilities primarily consisting of asset retirement obligations, capital lease obligations and hedging instruments.
|
|
Increase/(Decrease) to Net Earnings
|
|
Increase/(Decrease) to OCI
|
||||||||||||
|
10% Increase in
Underlying Rate
|
|
10% Decrease in
Underlying Rate |
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
||||||||
Commodity hedges
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
$
|
3
|
|
|
$
|
(3
|
)
|
|
Increase/(Decrease) to Net Earnings
|
|
Increase/(Decrease) to OCI
|
||||||||||||
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
||||||||
Foreign currency hedges
|
$
|
7
|
|
|
$
|
(7
|
)
|
|
$
|
47
|
|
|
$
|
(47
|
)
|
|
|
|
|
|
Change in Fair Value
|
|||||||||
|
Stated Interest Rate
|
|
Fair Value
|
|
100 Basis Point Increase in
Underlying Rate
|
|
100 Basis Point Decrease in
Underlying Rate
|
|||||||
|
|
|||||||||||||
2016 notes
|
0.875
|
%
|
|
$
|
400
|
|
|
$
|
(9
|
)
|
|
$
|
9
|
|
2017 notes
|
6.250
|
%
|
|
$
|
625
|
|
|
$
|
(17
|
)
|
|
$
|
17
|
|
2018 notes
|
2.000
|
%
|
|
$
|
353
|
|
|
$
|
(14
|
)
|
|
$
|
14
|
|
2023 notes
|
3.850
|
%
|
|
$
|
786
|
|
|
$
|
(58
|
)
|
|
$
|
58
|
|
Item 8.
|
Financial Statements and Supplementary Data
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
Net revenues:
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
12,977.9
|
|
|
$
|
11,793.2
|
|
|
$
|
10,534.5
|
|
Licensed stores
|
1,588.6
|
|
|
1,360.5
|
|
|
1,210.3
|
|
|||
CPG, foodservice and other
|
1,881.3
|
|
|
1,713.1
|
|
|
1,532.0
|
|
|||
Total net revenues
|
16,447.8
|
|
|
14,866.8
|
|
|
13,276.8
|
|
|||
Cost of sales including occupancy costs
|
6,858.8
|
|
|
6,382.3
|
|
|
5,813.3
|
|
|||
Store operating expenses
|
4,638.2
|
|
|
4,286.1
|
|
|
3,918.1
|
|
|||
Other operating expenses
|
457.3
|
|
|
431.8
|
|
|
407.2
|
|
|||
Depreciation and amortization expenses
|
709.6
|
|
|
621.4
|
|
|
550.3
|
|
|||
General and administrative expenses
|
991.3
|
|
|
937.9
|
|
|
801.2
|
|
|||
Litigation charge/(credit)
|
(20.2
|
)
|
|
2,784.1
|
|
|
—
|
|
|||
Total operating expenses
|
13,635.0
|
|
|
15,443.6
|
|
|
11,490.1
|
|
|||
Income from equity investees
|
268.3
|
|
|
251.4
|
|
|
210.7
|
|
|||
Operating income/(loss)
|
3,081.1
|
|
|
(325.4
|
)
|
|
1,997.4
|
|
|||
Interest income and other, net
|
142.7
|
|
|
123.6
|
|
|
94.4
|
|
|||
Interest expense
|
(64.1
|
)
|
|
(28.1
|
)
|
|
(32.7
|
)
|
|||
Earnings/(loss) before income taxes
|
3,159.7
|
|
|
(229.9
|
)
|
|
2,059.1
|
|
|||
Income tax expense/(benefit)
|
1,092.0
|
|
|
(238.7
|
)
|
|
674.4
|
|
|||
Net earnings including noncontrolling interests
|
2,067.7
|
|
|
8.8
|
|
|
1,384.7
|
|
|||
Net earnings/(loss) attributable to noncontrolling interests
|
(0.4
|
)
|
|
0.5
|
|
|
0.9
|
|
|||
Net earnings attributable to Starbucks
|
$
|
2,068.1
|
|
|
$
|
8.3
|
|
|
$
|
1,383.8
|
|
Earnings per share — basic
|
$
|
2.75
|
|
|
$
|
0.01
|
|
|
$
|
1.83
|
|
Earnings per share — diluted
|
$
|
2.71
|
|
|
$
|
0.01
|
|
|
$
|
1.79
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
753.1
|
|
|
749.3
|
|
|
754.4
|
|
|||
Diluted
|
763.1
|
|
|
762.3
|
|
|
773.0
|
|
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
Net earnings including noncontrolling interests
|
$
|
2,067.7
|
|
|
$
|
8.8
|
|
|
$
|
1,384.7
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
1.6
|
|
|
(0.6
|
)
|
|
0.7
|
|
|||
Tax (expense)/benefit
|
(0.6
|
)
|
|
0.2
|
|
|
(0.3
|
)
|
|||
Unrealized gains/(losses) on cash flow hedging instruments
|
24.1
|
|
|
47.1
|
|
|
(42.2
|
)
|
|||
Tax (expense)/benefit
|
(7.8
|
)
|
|
(24.6
|
)
|
|
4.3
|
|
|||
Unrealized gains/(losses) on net investment hedging instruments
|
25.5
|
|
|
32.8
|
|
|
1.0
|
|
|||
Tax (expense)/benefit
|
(9.4
|
)
|
|
(12.1
|
)
|
|
(0.4
|
)
|
|||
Reclassification adjustment for net (gains)/losses realized in net earnings for cash flow hedges and available-for-sale securities
|
(1.5
|
)
|
|
46.3
|
|
|
14.8
|
|
|||
Tax expense/(benefit)
|
3.8
|
|
|
(3.5
|
)
|
|
(4.3
|
)
|
|||
Translation adjustment
|
(75.8
|
)
|
|
(41.6
|
)
|
|
6.1
|
|
|||
Tax (expense)/benefit
|
(1.6
|
)
|
|
0.3
|
|
|
(3.3
|
)
|
|||
Other comprehensive income/(loss)
|
(41.7
|
)
|
|
44.3
|
|
|
(23.6
|
)
|
|||
Comprehensive income including noncontrolling interests
|
2,026.0
|
|
|
53.1
|
|
|
1,361.1
|
|
|||
Comprehensive income/(loss) attributable to noncontrolling interests
|
(0.4
|
)
|
|
0.5
|
|
|
0.9
|
|
|||
Comprehensive income attributable to Starbucks
|
$
|
2,026.4
|
|
|
$
|
52.6
|
|
|
$
|
1,360.2
|
|
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,708.4
|
|
|
$
|
2,575.7
|
|
Short-term investments
|
135.4
|
|
|
658.1
|
|
||
Accounts receivable, net
|
631.0
|
|
|
561.4
|
|
||
Inventories
|
1,090.9
|
|
|
1,111.2
|
|
||
Prepaid expenses and other current assets
|
285.6
|
|
|
287.7
|
|
||
Deferred income taxes, net
|
317.4
|
|
|
277.3
|
|
||
Total current assets
|
4,168.7
|
|
|
5,471.4
|
|
||
Long-term investments
|
318.4
|
|
|
58.3
|
|
||
Equity and cost investments
|
514.9
|
|
|
496.5
|
|
||
Property, plant and equipment, net
|
3,519.0
|
|
|
3,200.5
|
|
||
Deferred income taxes, net
|
903.3
|
|
|
967.0
|
|
||
Other assets
|
198.9
|
|
|
185.3
|
|
||
Other intangible assets
|
273.5
|
|
|
274.8
|
|
||
Goodwill
|
856.2
|
|
|
862.9
|
|
||
TOTAL ASSETS
|
$
|
10,752.9
|
|
|
$
|
11,516.7
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
533.7
|
|
|
$
|
491.7
|
|
Accrued litigation charge
|
—
|
|
|
2,784.1
|
|
||
Accrued liabilities
|
1,514.4
|
|
|
1,269.3
|
|
||
Insurance reserves
|
196.1
|
|
|
178.5
|
|
||
Deferred revenue
|
794.5
|
|
|
653.7
|
|
||
Total current liabilities
|
3,038.7
|
|
|
5,377.3
|
|
||
Long-term debt
|
2,048.3
|
|
|
1,299.4
|
|
||
Other long-term liabilities
|
392.2
|
|
|
357.7
|
|
||
Total liabilities
|
5,479.2
|
|
|
7,034.4
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 1,200.0 shares; issued and outstanding, 749.5 and 753.2 shares, respectively
|
0.7
|
|
|
0.8
|
|
||
Additional paid-in capital
|
39.4
|
|
|
282.1
|
|
||
Retained earnings
|
5,206.6
|
|
|
4,130.3
|
|
||
Accumulated other comprehensive income
|
25.3
|
|
|
67.0
|
|
||
Total shareholders’ equity
|
5,272.0
|
|
|
4,480.2
|
|
||
Noncontrolling interest
|
1.7
|
|
|
2.1
|
|
||
Total equity
|
5,273.7
|
|
|
4,482.3
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
10,752.9
|
|
|
$
|
11,516.7
|
|
Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net earnings including noncontrolling interests
|
$
|
2,067.7
|
|
|
$
|
8.8
|
|
|
$
|
1,384.7
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
748.4
|
|
|
655.6
|
|
|
580.6
|
|
|||
Litigation charge
|
—
|
|
|
2,784.1
|
|
|
—
|
|
|||
Deferred income taxes, net
|
10.2
|
|
|
(1,045.9
|
)
|
|
61.1
|
|
|||
Income earned from equity method investees
|
(182.7
|
)
|
|
(171.8
|
)
|
|
(136.0
|
)
|
|||
Distributions received from equity method investees
|
139.2
|
|
|
115.6
|
|
|
86.7
|
|
|||
Gain resulting from sale of equity in joint ventures and certain retail operations
|
(70.2
|
)
|
|
(80.1
|
)
|
|
—
|
|
|||
Stock-based compensation
|
183.2
|
|
|
142.3
|
|
|
153.6
|
|
|||
Excess tax benefit on share-based awards
|
(114.4
|
)
|
|
(258.1
|
)
|
|
(169.8
|
)
|
|||
Other
|
36.2
|
|
|
23.0
|
|
|
23.6
|
|
|||
Cash (used)/provided by changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(79.7
|
)
|
|
(68.3
|
)
|
|
(90.3
|
)
|
|||
Inventories
|
14.3
|
|
|
152.5
|
|
|
(273.3
|
)
|
|||
Accounts payable
|
60.4
|
|
|
88.7
|
|
|
(105.2
|
)
|
|||
Accrued litigation charge
|
(2,763.9
|
)
|
|
—
|
|
|
—
|
|
|||
Income taxes payable, net
|
309.8
|
|
|
298.4
|
|
|
201.6
|
|
|||
Accrued liabilities and insurance reserves
|
103.9
|
|
|
47.3
|
|
|
(8.1
|
)
|
|||
Deferred revenue
|
140.8
|
|
|
139.9
|
|
|
60.8
|
|
|||
Prepaid expenses, other current assets and other assets
|
4.6
|
|
|
76.3
|
|
|
(19.7
|
)
|
|||
Net cash provided by operating activities
|
607.8
|
|
|
2,908.3
|
|
|
1,750.3
|
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchase of investments
|
(1,652.5
|
)
|
|
(785.9
|
)
|
|
(1,748.6
|
)
|
|||
Sales of investments
|
1,454.8
|
|
|
60.2
|
|
|
—
|
|
|||
Maturities and calls of investments
|
456.1
|
|
|
980.0
|
|
|
1,796.4
|
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
(610.4
|
)
|
|
(129.1
|
)
|
|||
Additions to property, plant and equipment
|
(1,160.9
|
)
|
|
(1,151.2
|
)
|
|
(856.2
|
)
|
|||
Proceeds from sale of equity in joint ventures and certain retail operations
|
103.9
|
|
|
108.0
|
|
|
—
|
|
|||
Other
|
(19.1
|
)
|
|
(11.9
|
)
|
|
(36.5
|
)
|
|||
Net cash used by investing activities
|
(817.7
|
)
|
|
(1,411.2
|
)
|
|
(974.0
|
)
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
748.5
|
|
|
749.7
|
|
|
—
|
|
|||
Principal payments on long-term debt
|
—
|
|
|
(35.2
|
)
|
|
—
|
|
|||
Payments on short-term borrowings
|
—
|
|
|
—
|
|
|
(30.8
|
)
|
|||
Proceeds from issuance of common stock
|
139.7
|
|
|
247.2
|
|
|
236.6
|
|
|||
Excess tax benefit on share-based awards
|
114.4
|
|
|
258.1
|
|
|
169.8
|
|
|||
Cash dividends paid
|
(783.1
|
)
|
|
(628.9
|
)
|
|
(513.0
|
)
|
|||
Repurchase of common stock
|
(758.6
|
)
|
|
(588.1
|
)
|
|
(549.1
|
)
|
|||
Minimum tax withholdings on share-based awards
|
(77.3
|
)
|
|
(121.4
|
)
|
|
(58.5
|
)
|
|||
Other
|
(6.9
|
)
|
|
10.4
|
|
|
(0.5
|
)
|
|||
Net cash used by financing activities
|
(623.3
|
)
|
|
(108.2
|
)
|
|
(745.5
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(34.1
|
)
|
|
(1.8
|
)
|
|
9.7
|
|
|||
Net (decrease)/increase in cash and cash equivalents
|
(867.3
|
)
|
|
1,387.1
|
|
|
40.5
|
|
|||
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
||||||
Beginning of period
|
2,575.7
|
|
|
1,188.6
|
|
|
1,148.1
|
|
|||
End of period
|
$
|
1,708.4
|
|
|
$
|
2,575.7
|
|
|
$
|
1,188.6
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest, net of capitalized interest
|
$
|
56.2
|
|
|
$
|
34.4
|
|
|
$
|
34.4
|
|
Income taxes, net of refunds
|
$
|
766.3
|
|
|
$
|
539.1
|
|
|
$
|
416.9
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Shareholders’
Equity |
|
Noncontrolling
Interest |
|
Total
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
Balance, October 2, 2011
|
744.8
|
|
|
$
|
0.7
|
|
|
$
|
40.5
|
|
|
$
|
4,297.4
|
|
|
$
|
46.3
|
|
|
$
|
4,384.9
|
|
|
$
|
2.4
|
|
|
$
|
4,387.3
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
1,383.8
|
|
|
—
|
|
|
1,383.8
|
|
|
0.9
|
|
|
1,384.7
|
|
|||||||
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(23.6
|
)
|
|
(23.6
|
)
|
|
—
|
|
|
(23.6
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
155.2
|
|
|
—
|
|
|
—
|
|
|
155.2
|
|
|
—
|
|
|
155.2
|
|
|||||||
Exercise of stock options/vesting of RSUs, including tax benefit of $167.3
|
16.5
|
|
|
—
|
|
|
326.1
|
|
|
—
|
|
|
—
|
|
|
326.1
|
|
|
—
|
|
|
326.1
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.3
|
|
|
—
|
|
|
19.5
|
|
|
—
|
|
|
—
|
|
|
19.5
|
|
|
—
|
|
|
19.5
|
|
|||||||
Repurchase of common stock
|
(12.3
|
)
|
|
—
|
|
|
(501.9
|
)
|
|
(91.3
|
)
|
|
—
|
|
|
(593.2
|
)
|
|
—
|
|
|
(593.2
|
)
|
|||||||
Cash dividends declared, $0.72 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(543.7
|
)
|
|
—
|
|
|
(543.7
|
)
|
|
—
|
|
|
(543.7
|
)
|
|||||||
Noncontrolling interest resulting from acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
2.2
|
|
|||||||
Balance, September 30, 2012
|
749.3
|
|
|
$
|
0.7
|
|
|
$
|
39.4
|
|
|
$
|
5,046.2
|
|
|
$
|
22.7
|
|
|
$
|
5,109.0
|
|
|
$
|
5.5
|
|
|
$
|
5,114.5
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
|
8.3
|
|
|
0.5
|
|
|
8.8
|
|
|||||||
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
44.3
|
|
|
44.3
|
|
|
—
|
|
|
44.3
|
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
144.1
|
|
|
—
|
|
|
—
|
|
|
144.1
|
|
|
—
|
|
|
144.1
|
|
|||||||
Exercise of stock options/vesting of RSUs, including tax benefit of $259.9
|
14.4
|
|
|
0.1
|
|
|
366.7
|
|
|
—
|
|
|
—
|
|
|
366.8
|
|
|
—
|
|
|
366.8
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.3
|
|
|
—
|
|
|
20.4
|
|
|
—
|
|
|
—
|
|
|
20.4
|
|
|
—
|
|
|
20.4
|
|
|||||||
Repurchase of common stock
|
(10.8
|
)
|
|
—
|
|
|
(288.5
|
)
|
|
(255.6
|
)
|
|
—
|
|
|
(544.1
|
)
|
|
—
|
|
|
(544.1
|
)
|
|||||||
Cash dividends declared, $0.89 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(668.6
|
)
|
|
—
|
|
|
(668.6
|
)
|
|
—
|
|
|
(668.6
|
)
|
|||||||
Noncontrolling interest resulting from divestiture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
(3.9
|
)
|
|||||||
Balance, September 29, 2013
|
753.2
|
|
|
$
|
0.8
|
|
|
$
|
282.1
|
|
|
$
|
4,130.3
|
|
|
$
|
67.0
|
|
|
$
|
4,480.2
|
|
|
$
|
2.1
|
|
|
$
|
4,482.3
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
2,068.1
|
|
|
—
|
|
|
2,068.1
|
|
|
(0.4
|
)
|
|
2,067.7
|
|
|||||||
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(41.7
|
)
|
|
(41.7
|
)
|
|
—
|
|
|
(41.7
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
185.1
|
|
|
—
|
|
|
—
|
|
|
185.1
|
|
|
—
|
|
|
185.1
|
|
|||||||
Exercise of stock options/vesting of RSUs, including tax benefit of $114.8
|
6.5
|
|
|
—
|
|
|
154.8
|
|
|
—
|
|
|
—
|
|
|
154.8
|
|
|
—
|
|
|
154.8
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.3
|
|
|
—
|
|
|
22.3
|
|
|
—
|
|
|
—
|
|
|
22.3
|
|
|
—
|
|
|
22.3
|
|
|||||||
Repurchase of common stock
|
(10.5
|
)
|
|
(0.1
|
)
|
|
(604.9
|
)
|
|
(164.8
|
)
|
|
—
|
|
|
(769.8
|
)
|
|
—
|
|
|
(769.8
|
)
|
|||||||
Cash dividends declared, $1.10 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(827.0
|
)
|
|
—
|
|
|
(827.0
|
)
|
|
—
|
|
|
(827.0
|
)
|
|||||||
Balance, September 28, 2014
|
749.5
|
|
|
$
|
0.7
|
|
|
$
|
39.4
|
|
|
$
|
5,206.6
|
|
|
$
|
25.3
|
|
|
$
|
5,272.0
|
|
|
$
|
1.7
|
|
|
$
|
5,273.7
|
|
Note 1
|
||
Note 2
|
||
Note 3
|
||
Note 4
|
||
Note 5
|
||
Note 6
|
||
Note 7
|
||
Note 8
|
||
Note 9
|
||
Note 10
|
||
Note 11
|
||
Note 12
|
||
Note 13
|
||
Note 14
|
||
Note 15
|
||
Note 16
|
||
Note 17
|
||
Note 18
|
|
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 tax expense/(benefit)
|
188.7
|
|
|
198.1
|
|
|
194.6
|
|
|
(820.1
|
)
|
|
(238.7
|
)
|
|
674.4
|
|
||||||
Net earnings/(loss) including noncontrolling interests
|
432.4
|
|
|
390.7
|
|
|
417.8
|
|
|
(1,232.1
|
)
|
|
8.8
|
|
|
1,384.7
|
|
||||||
Net earnings/(loss) attributable to noncontrolling interests
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.5
|
|
|
0.9
|
|
||||||
Net earnings/(loss) attributable to Starbucks
|
$
|
432.2
|
|
|
$
|
390.4
|
|
|
$
|
417.8
|
|
|
$
|
(1,232.0
|
)
|
|
$
|
8.3
|
|
|
$
|
1,383.8
|
|
|
|
Fair Value at
Dec 31, 2012
|
||
Cash and cash equivalents
|
|
$
|
47.0
|
|
Inventories
|
|
21.3
|
|
|
Property, plant and equipment
|
|
59.7
|
|
|
Intangible assets
|
|
120.8
|
|
|
Goodwill
|
|
467.5
|
|
|
Other current and noncurrent assets
|
|
19.8
|
|
|
Current liabilities
|
|
(36.0
|
)
|
|
Long-term deferred tax liability
|
|
(54.3
|
)
|
|
Long-term debt
|
|
(35.2
|
)
|
|
Other long-term liabilities
|
|
(7.0
|
)
|
|
Total purchase price
|
|
$
|
603.6
|
|
|
|
Fair Value at
July 3, 2012
|
||
Property, plant and equipment
|
|
$
|
18.1
|
|
Intangible assets
|
|
24.3
|
|
|
Goodwill
|
|
58.7
|
|
|
Other current and noncurrent assets
|
|
5.1
|
|
|
Current liabilities
|
|
(6.4
|
)
|
|
Total cash paid
|
|
$
|
99.8
|
|
|
Net Gains/(Losses)
Included in AOCI |
|
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
|
|
Contract Remaining Maturity
(Months) |
||||||||
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rates
|
$
|
36.4
|
|
|
$
|
41.4
|
|
|
$
|
3.3
|
|
|
|
Foreign currency
|
10.6
|
|
|
(0.3
|
)
|
|
7.0
|
|
|
34
|
|||
Coffee
|
(0.7
|
)
|
|
(12.2
|
)
|
|
(1.3
|
)
|
|
14
|
|||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
3.2
|
|
|
(12.9
|
)
|
|
1.8
|
|
|
36
|
|
Year Ended
|
||||||||||||||
|
Gains/(Losses) Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from AOCI to Earnings
|
||||||||||||
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
$
|
0.5
|
|
|
$
|
66.2
|
|
|
$
|
5.0
|
|
|
$
|
0.5
|
|
Foreign currency
|
24.0
|
|
|
7.4
|
|
|
8.0
|
|
|
3.5
|
|
||||
Coffee
|
(0.4
|
)
|
|
(26.5
|
)
|
|
(13.1
|
)
|
|
(49.4
|
)
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
25.5
|
|
|
32.8
|
|
|
—
|
|
|
—
|
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||
Foreign currency
|
$
|
542
|
|
|
$
|
452
|
|
Coffee
|
45
|
|
|
—
|
|
||
Dairy
|
24
|
|
|
38
|
|
||
Diesel fuel
|
17
|
|
|
17
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Sep 28, 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
|
$
|
1,708.4
|
|
|
$
|
1,708.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
||||
Foreign government obligations
|
33.7
|
|
|
—
|
|
|
33.7
|
|
|
—
|
|
||||
US government treasury securities
|
10.9
|
|
|
10.9
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
12.7
|
|
|
—
|
|
|
12.7
|
|
|
—
|
|
||||
Certificates of deposit
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
||||
Total available-for-sale securities
|
63.2
|
|
|
10.9
|
|
|
52.3
|
|
|
—
|
|
||||
Trading securities
|
72.2
|
|
|
72.2
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
135.4
|
|
|
83.1
|
|
|
52.3
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
28.7
|
|
|
0.9
|
|
|
27.8
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
8.9
|
|
|
—
|
|
|
8.9
|
|
|
—
|
|
||||
Corporate debt securities
|
130.9
|
|
|
—
|
|
|
130.9
|
|
|
—
|
|
||||
Auction rate securities
|
13.8
|
|
|
—
|
|
|
—
|
|
|
13.8
|
|
||||
Foreign government obligations
|
17.4
|
|
|
—
|
|
|
17.4
|
|
|
—
|
|
||||
US government treasury securities
|
94.8
|
|
|
94.8
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
||||
Mortgage and asset-backed securities
|
45.9
|
|
|
—
|
|
|
45.9
|
|
|
—
|
|
||||
Total long-term investments
|
318.4
|
|
|
94.8
|
|
|
209.8
|
|
|
13.8
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
18.0
|
|
|
—
|
|
|
18.0
|
|
|
—
|
|
||||
Total
|
$
|
2,208.9
|
|
|
$
|
1,887.2
|
|
|
$
|
307.9
|
|
|
$
|
13.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
2.4
|
|
|
$
|
0.4
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
|
|
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
|
|
|
—
|
|
||||
US 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
|
|
|
$
|
—
|
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||
Coffee:
|
|
|
|
||||
Unroasted
|
$
|
432.3
|
|
|
$
|
493.0
|
|
Roasted
|
238.9
|
|
|
235.4
|
|
||
Other merchandise held for sale
|
265.7
|
|
|
243.3
|
|
||
Packaging and other supplies
|
154.0
|
|
|
139.5
|
|
||
Total
|
$
|
1,090.9
|
|
|
$
|
1,111.2
|
|
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||
Equity method investments
|
$
|
469.3
|
|
|
$
|
450.9
|
|
Cost method investments
|
45.6
|
|
|
45.6
|
|
||
Total
|
$
|
514.9
|
|
|
$
|
496.5
|
|
Financial Position as of
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||
Current assets
|
$
|
701.3
|
|
|
$
|
675.8
|
|
Noncurrent assets
|
873.9
|
|
|
783.3
|
|
||
Current liabilities
|
615.6
|
|
|
466.6
|
|
||
Noncurrent liabilities
|
79.1
|
|
|
148.9
|
|
Results of Operations for Fiscal Year Ended
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
||||||
Net revenues
|
$
|
3,461.3
|
|
|
$
|
3,018.7
|
|
|
$
|
2,796.7
|
|
Operating income
|
467.7
|
|
|
434.8
|
|
|
353.5
|
|
|||
Net earnings
|
382.6
|
|
|
358.0
|
|
|
286.7
|
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||
Land
|
$
|
46.7
|
|
|
$
|
47.0
|
|
Buildings
|
278.1
|
|
|
259.6
|
|
||
Leasehold improvements
|
4,858.4
|
|
|
4,431.6
|
|
||
Store equipment
|
1,493.3
|
|
|
1,353.9
|
|
||
Roasting equipment
|
410.9
|
|
|
397.9
|
|
||
Furniture, fixtures and other
|
1,078.1
|
|
|
949.7
|
|
||
Work in progress
|
415.6
|
|
|
342.4
|
|
||
Property, plant and equipment, gross
|
8,581.1
|
|
|
7,782.1
|
|
||
Accumulated depreciation
|
(5,062.1
|
)
|
|
(4,581.6
|
)
|
||
Property, plant and equipment, net
|
$
|
3,519.0
|
|
|
$
|
3,200.5
|
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||
Accrued compensation and related costs
|
$
|
437.9
|
|
|
$
|
420.2
|
|
Accrued occupancy costs
|
119.8
|
|
|
120.7
|
|
||
Accrued taxes
|
272.0
|
|
|
125.0
|
|
||
Accrued dividend payable
|
239.8
|
|
|
195.8
|
|
||
Other
|
444.9
|
|
|
407.6
|
|
||
Total accrued liabilities
|
$
|
1,514.4
|
|
|
$
|
1,269.3
|
|
(in millions)
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||
Trade names, trademarks and patents
|
$
|
197.5
|
|
|
$
|
190.5
|
|
Other indefinite-lived intangible assets
|
15.1
|
|
|
15.1
|
|
||
Total indefinite-lived intangible assets
|
$
|
212.6
|
|
|
$
|
205.6
|
|
|
Americas
|
|
EMEA
|
|
China /
Asia Pacific |
|
Channel
Development |
|
All Other Segments
|
|
Total
|
||||||||||||
Balance at September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill prior to impairment
|
$
|
235.9
|
|
|
$
|
60.0
|
|
|
$
|
75.3
|
|
|
$
|
23.8
|
|
|
$
|
12.7
|
|
|
$
|
407.7
|
|
Accumulated impairment charges
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.6
|
)
|
||||||
Goodwill
|
$
|
227.3
|
|
|
$
|
60.0
|
|
|
$
|
75.3
|
|
|
$
|
23.8
|
|
|
$
|
12.7
|
|
|
$
|
399.1
|
|
Acquisitions/(divestitures)
|
(3.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
467.5
|
|
|
463.8
|
|
||||||
Other
(1)
|
(2.0
|
)
|
|
2.2
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance at September 29, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill prior to impairment
|
$
|
230.2
|
|
|
$
|
62.2
|
|
|
$
|
75.1
|
|
|
$
|
23.8
|
|
|
$
|
480.2
|
|
|
$
|
871.5
|
|
Accumulated impairment charges
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.6
|
)
|
||||||
Goodwill
|
$
|
221.6
|
|
|
$
|
62.2
|
|
|
$
|
75.1
|
|
|
$
|
23.8
|
|
|
$
|
480.2
|
|
|
$
|
862.9
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
||||||
Other
(1)
|
(2.6
|
)
|
|
(3.1
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
||||||
Balance at September 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill prior to impairment
|
$
|
227.6
|
|
|
$
|
59.1
|
|
|
$
|
74.9
|
|
|
$
|
23.8
|
|
|
$
|
480.2
|
|
|
$
|
865.6
|
|
Accumulated impairment charges
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
(9.4
|
)
|
||||||
Goodwill
|
$
|
219.0
|
|
|
$
|
59.1
|
|
|
$
|
74.9
|
|
|
$
|
23.8
|
|
|
$
|
479.4
|
|
|
$
|
856.2
|
|
(1)
|
Other is primarily comprised of changes in the goodwill balance as a result of foreign exchange fluctuations.
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||||||||||||||||
(in millions)
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Acquired rights
|
$
|
36.8
|
|
|
$
|
(10.1
|
)
|
|
$
|
26.7
|
|
|
$
|
38.8
|
|
|
$
|
(7.1
|
)
|
|
$
|
31.7
|
|
Acquired trade secrets and processes
|
27.6
|
|
|
(5.4
|
)
|
|
22.2
|
|
|
27.6
|
|
|
(2.7
|
)
|
|
24.9
|
|
||||||
Trade names, trademarks and patents
|
21.6
|
|
|
(11.6
|
)
|
|
10.0
|
|
|
19.5
|
|
|
(9.8
|
)
|
|
9.7
|
|
||||||
Other definite-lived intangible assets
|
3.8
|
|
|
(1.8
|
)
|
|
2.0
|
|
|
3.8
|
|
|
(0.9
|
)
|
|
2.9
|
|
||||||
Total definite-lived intangible assets
|
$
|
89.8
|
|
|
$
|
(28.9
|
)
|
|
$
|
60.9
|
|
|
$
|
89.7
|
|
|
$
|
(20.5
|
)
|
|
$
|
69.2
|
|
Fiscal Year Ending
|
|
||
2015
|
$
|
9.3
|
|
2016
|
8.7
|
|
|
2017
|
8.4
|
|
|
2018
|
6.8
|
|
|
2019
|
6.5
|
|
|
Thereafter
|
21.2
|
|
|
Total estimated future amortization expense
|
$
|
60.9
|
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Stated Interest Rate
|
Effective Interest Rate
(1)
|
||||||||||||
Issuance
|
Face Value
|
Estimated Fair Value
|
|
Face Value
|
Estimated Fair Value
|
|
||||||||||||
2016 notes
|
$
|
400.0
|
|
$
|
400
|
|
|
$
|
—
|
|
$
|
—
|
|
|
0.875
|
%
|
0.941
|
%
|
2017 notes
|
550.0
|
|
625
|
|
|
550.0
|
|
644
|
|
|
6.250
|
%
|
6.292
|
%
|
||||
2018 notes
|
350.0
|
|
353
|
|
|
—
|
|
—
|
|
|
2.000
|
%
|
2.012
|
%
|
||||
2023 notes
|
750.0
|
|
786
|
|
|
750.0
|
|
762
|
|
|
3.850
|
%
|
2.860
|
%
|
||||
Total
|
2,050.0
|
|
2,164
|
|
|
1,300.0
|
|
1,406
|
|
|
|
|
||||||
Aggregate unamortized discount
|
1.7
|
|
|
|
0.6
|
|
|
|
|
|
||||||||
Total
|
$
|
2,048.3
|
|
|
|
$
|
1,299.4
|
|
|
|
|
|
(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.
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||
Minimum rent
|
$
|
907.4
|
|
|
$
|
838.3
|
|
|
$
|
759.0
|
|
Contingent rent
|
66.8
|
|
|
56.4
|
|
|
44.7
|
|
|||
Total
|
$
|
974.2
|
|
|
$
|
894.7
|
|
|
$
|
803.7
|
|
Fiscal Year Ending
|
|
||
2015
|
$
|
925.6
|
|
2016
|
826.6
|
|
|
2017
|
696.3
|
|
|
2018
|
556.3
|
|
|
2019
|
450.8
|
|
|
Thereafter
|
1,502.3
|
|
|
Total minimum lease payments
|
$
|
4,957.9
|
|
|
Dividend Per Share
|
|
Record date
|
|
Total Amount
|
|
Payment Date
|
Fiscal Year 2014:
|
|
|
|
|
|
|
|
First quarter
|
$0.26
|
|
February 6, 2014
|
|
$196.4
|
|
February 21, 2014
|
Second quarter
|
$0.26
|
|
May 8, 2014
|
|
$195.5
|
|
May 23, 2014
|
Third quarter
|
$0.26
|
|
August 7, 2014
|
|
$195.3
|
|
August 22, 2014
|
Fourth quarter
|
$0.32
|
|
November 13, 2014
|
|
$239.8
|
|
November 28, 2014
|
Fiscal Year 2013:
|
|
|
|
|
|
|
|
First quarter
|
$0.21
|
|
February 7, 2013
|
|
$157.5
|
|
February 22, 2013
|
Second quarter
|
$0.21
|
|
May 9, 2013
|
|
$157.3
|
|
May 24, 2013
|
Third quarter
|
$0.21
|
|
August 8, 2013
|
|
$158.0
|
|
August 23, 2013
|
Fourth quarter
|
$0.26
|
|
November 14, 2013
|
|
$195.8
|
|
November 29, 2013
|
(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
|
1.0
|
|
|
16.3
|
|
|
16.1
|
|
|
(77.4
|
)
|
|
(44.0
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(0.9
|
)
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|||||
Other comprehensive income/(loss)
|
0.1
|
|
|
19.5
|
|
|
16.1
|
|
|
(77.4
|
)
|
|
(41.7
|
)
|
|||||
Net gains/(losses) in AOCI at September 28, 2014
|
$
|
(0.4
|
)
|
|
$
|
46.3
|
|
|
$
|
3.2
|
|
|
$
|
(23.8
|
)
|
|
$
|
25.3
|
|
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
|
|
$
|
5.0
|
|
|
Interest expense
|
Foreign currency hedges
|
|
5.1
|
|
|
Revenue
|
|
Foreign currency/coffee hedges
|
|
(10.0
|
)
|
|
Cost of sales including occupancy costs
|
|
|
|
0.1
|
|
|
Total before tax
|
|
|
|
(3.3
|
)
|
|
Tax (expense)/benefit
|
|
|
|
$
|
(3.2
|
)
|
|
Net of tax
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||
Options
|
$
|
41.8
|
|
|
$
|
37.1
|
|
|
$
|
46.2
|
|
RSUs
|
141.4
|
|
|
105.2
|
|
|
107.4
|
|
|||
Total stock-based compensation expense recognized in the consolidated statements of earnings
|
$
|
183.2
|
|
|
$
|
142.3
|
|
|
$
|
153.6
|
|
Total related tax benefit
|
$
|
63.4
|
|
|
$
|
49.8
|
|
|
$
|
54.2
|
|
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
|
$
|
1.9
|
|
|
$
|
1.8
|
|
|
$
|
2.0
|
|
|
Employee Stock Options
Granted During the Period |
||||||||||
Fiscal Year Ended
|
2014
|
|
2013
|
|
2012
|
||||||
Expected term (in years)
|
4.5
|
|
|
4.8
|
|
|
4.8
|
|
|||
Expected stock price volatility
|
26.8
|
%
|
|
34.0
|
%
|
|
38.2
|
%
|
|||
Risk-free interest rate
|
1.1
|
%
|
|
0.7
|
%
|
|
1.0
|
%
|
|||
Expected dividend yield
|
1.3
|
%
|
|
1.6
|
%
|
|
1.5
|
%
|
|||
Weighted average grant price
|
$
|
80.23
|
|
|
$
|
51.23
|
|
|
$
|
44.26
|
|
Estimated fair value per option granted
|
$
|
16.72
|
|
|
$
|
12.88
|
|
|
$
|
12.79
|
|
|
Shares
Subject to Options |
|
Weighted
Average Exercise Price per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding, September 29, 2013
|
22.0
|
|
|
$
|
29.11
|
|
|
6.0
|
|
$
|
1,060
|
|
Granted
|
3.1
|
|
|
80.23
|
|
|
|
|
|
|||
Exercised
|
(4.8
|
)
|
|
24.27
|
|
|
|
|
|
|||
Expired/forfeited
|
(0.5
|
)
|
|
51.80
|
|
|
|
|
|
|||
Outstanding, September 28, 2014
|
19.8
|
|
|
37.86
|
|
|
5.8
|
|
754
|
|
||
Exercisable, September 28, 2014
|
12.7
|
|
|
25.32
|
|
|
4.4
|
|
631
|
|
||
Vested and expected to vest, September 28, 2014
|
19.2
|
|
|
36.89
|
|
|
5.7
|
|
747
|
|
|
Number
of Shares |
|
Weighted
Average Grant Date Fair Value per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Nonvested, September 29, 2013
|
5.8
|
|
|
$
|
44.08
|
|
|
0.9
|
|
$
|
452
|
|
Granted
|
2.9
|
|
|
80.13
|
|
|
|
|
|
|||
Vested
|
(2.6
|
)
|
|
40.08
|
|
|
|
|
|
|||
Forfeited/canceled
|
(0.7
|
)
|
|
65.59
|
|
|
|
|
|
|||
Nonvested, September 28, 2014
|
5.4
|
|
|
62.34
|
|
|
1.0
|
|
407
|
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||||||||
|
|
Total
|
Litigation charge
|
All Other
|
|
||||||||||||
United States
|
$
|
2,572.4
|
|
|
$
|
(674.0
|
)
|
$
|
(2,784.1
|
)
|
$
|
2,110.1
|
|
|
$
|
1,679.6
|
|
Foreign
|
587.3
|
|
|
444.1
|
|
—
|
|
444.1
|
|
|
379.5
|
|
|||||
Total earnings/(loss) before income taxes
|
$
|
3,159.7
|
|
|
$
|
(229.9
|
)
|
$
|
(2,784.1
|
)
|
$
|
2,554.2
|
|
|
$
|
2,059.1
|
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||||||||
|
|
Total
|
Litigation charge
|
All Other
|
|
||||||||||||
Current taxes:
|
|
|
|
|
|
|
|
||||||||||
US federal
|
$
|
822.7
|
|
|
$
|
616.6
|
|
$
|
—
|
|
$
|
616.6
|
|
|
$
|
466.0
|
|
US state and local
|
132.9
|
|
|
93.8
|
|
—
|
|
93.8
|
|
|
79.9
|
|
|||||
Foreign
|
128.8
|
|
|
95.9
|
|
—
|
|
95.9
|
|
|
76.8
|
|
|||||
Total current taxes
|
1,084.4
|
|
|
806.3
|
|
—
|
|
806.3
|
|
|
622.7
|
|
|||||
Deferred taxes:
|
|
|
|
|
|
|
|
||||||||||
US federal
|
12.0
|
|
|
(898.8
|
)
|
(922.3
|
)
|
23.5
|
|
|
49.2
|
|
|||||
US state and local
|
(4.9
|
)
|
|
(144.0
|
)
|
(148.7
|
)
|
4.7
|
|
|
(0.7
|
)
|
|||||
Foreign
|
0.5
|
|
|
(2.2
|
)
|
—
|
|
(2.2
|
)
|
|
3.2
|
|
|||||
Total deferred taxes
|
7.6
|
|
|
(1,045.0
|
)
|
(1,071.0
|
)
|
26.0
|
|
|
51.7
|
|
|||||
Total income tax expense/(benefit)
|
$
|
1,092.0
|
|
|
$
|
(238.7
|
)
|
$
|
(1,071.0
|
)
|
$
|
832.3
|
|
|
$
|
674.4
|
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
|||||||
|
|
Total
|
Litigation charge
|
All Other
|
|
|||||||
Statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net of federal tax benefit
|
2.6
|
|
|
15.8
|
|
3.5
|
|
2.4
|
|
|
2.5
|
|
Benefits and taxes related to foreign operations
|
(1.9
|
)
|
|
37.5
|
|
—
|
|
(3.4
|
)
|
|
(3.3
|
)
|
Domestic production activity deduction
|
(0.7
|
)
|
|
8.1
|
|
—
|
|
(0.7
|
)
|
|
(0.7
|
)
|
Domestic tax credits
|
(0.2
|
)
|
|
2.8
|
|
—
|
|
(0.3
|
)
|
|
(0.3
|
)
|
Charitable contributions
|
(0.4
|
)
|
|
3.9
|
|
—
|
|
(0.3
|
)
|
|
(0.5
|
)
|
Other, net
|
0.2
|
|
|
0.7
|
|
—
|
|
(0.1
|
)
|
|
0.1
|
|
Effective tax rate
|
34.6
|
%
|
|
103.8
|
%
|
38.5
|
%
|
32.6
|
%
|
|
32.8
|
%
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||
Deferred tax assets:
|
|
|
|
||||
Property, plant and equipment
|
$
|
78.5
|
|
|
$
|
64.9
|
|
Accrued occupancy costs
|
58.8
|
|
|
69.0
|
|
||
Accrued compensation and related costs
|
75.3
|
|
|
77.6
|
|
||
Other accrued liabilities
|
27.6
|
|
|
22.0
|
|
||
Asset retirement obligation asset
|
18.6
|
|
|
21.0
|
|
||
Deferred revenue
|
63.4
|
|
|
49.9
|
|
||
Asset impairments
|
49.5
|
|
|
33.3
|
|
||
Tax credits
|
20.3
|
|
|
19.1
|
|
||
Stock-based compensation
|
131.5
|
|
|
120.9
|
|
||
Net operating losses
|
104.4
|
|
|
99.0
|
|
||
Litigation charge
|
1,002.0
|
|
|
1,071.9
|
|
||
Other
|
77.0
|
|
|
62.7
|
|
||
Total
|
$
|
1,706.9
|
|
|
$
|
1,711.3
|
|
Valuation allowance
|
(166.8
|
)
|
|
(160.5
|
)
|
||
Total deferred tax asset, net of valuation allowance
|
$
|
1,540.1
|
|
|
$
|
1,550.8
|
|
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(148.2
|
)
|
|
(182.9
|
)
|
||
Intangible assets and goodwill
|
(92.9
|
)
|
|
(81.6
|
)
|
||
Other
|
(89.4
|
)
|
|
(53.1
|
)
|
||
Total
|
(330.5
|
)
|
|
(317.6
|
)
|
||
Net deferred tax asset
|
$
|
1,209.6
|
|
|
$
|
1,233.2
|
|
Reported as:
|
|
|
|
||||
Current deferred income tax assets
|
$
|
317.4
|
|
|
$
|
277.3
|
|
Long-term deferred income tax assets
|
903.3
|
|
|
967.0
|
|
||
Current deferred income tax liabilities (included in Accrued liabilities)
|
(4.2
|
)
|
|
(1.0
|
)
|
||
Long-term deferred income tax liabilities (included in Other long-term liabilities)
|
(6.9
|
)
|
|
(10.1
|
)
|
||
Net deferred tax asset
|
$
|
1,209.6
|
|
|
$
|
1,233.2
|
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||
Beginning balance
|
$
|
88.8
|
|
|
$
|
75.3
|
|
|
$
|
52.9
|
|
Increase related to prior year tax positions
|
1.4
|
|
|
8.9
|
|
|
8.8
|
|
|||
Decrease related to prior year tax positions
|
(2.2
|
)
|
|
(9.3
|
)
|
|
—
|
|
|||
Increase related to current year tax positions
|
26.7
|
|
|
19.3
|
|
|
20.0
|
|
|||
Decrease related to current year tax positions
|
(1.9
|
)
|
|
(0.4
|
)
|
|
(1.1
|
)
|
|||
Decreases related to settlements with taxing authorities
|
(0.1
|
)
|
|
—
|
|
|
(0.5
|
)
|
|||
Decreases related to lapsing of statute of limitations
|
—
|
|
|
(5.0
|
)
|
|
(4.8
|
)
|
|||
Ending balance
|
$
|
112.7
|
|
|
$
|
88.8
|
|
|
$
|
75.3
|
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||
Net earnings attributable to Starbucks
|
$
|
2,068.1
|
|
|
$
|
8.3
|
|
|
$
|
1,383.8
|
|
Weighted average common shares and common stock units outstanding (for basic calculation)
|
753.1
|
|
|
749.3
|
|
|
754.4
|
|
|||
Dilutive effect of outstanding common stock options and RSUs
|
10.0
|
|
|
13.0
|
|
|
18.6
|
|
|||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
763.1
|
|
|
762.3
|
|
|
773.0
|
|
|||
EPS — basic
|
$
|
2.75
|
|
|
$
|
0.01
|
|
|
$
|
1.83
|
|
EPS — diluted
|
$
|
2.71
|
|
|
$
|
0.01
|
|
|
$
|
1.79
|
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
|||||||||||||||
Beverage
|
$
|
9,458.4
|
|
|
58
|
%
|
|
$
|
8,674.7
|
|
|
58
|
%
|
|
$
|
7,883.8
|
|
|
59
|
%
|
Food
|
2,505.2
|
|
|
15
|
%
|
|
2,189.8
|
|
|
15
|
%
|
|
1,875.1
|
|
|
14
|
%
|
|||
Packaged and single-serve coffees and teas
|
2,370.0
|
|
|
14
|
%
|
|
2,206.5
|
|
|
15
|
%
|
|
1,965.8
|
|
|
15
|
%
|
|||
Other
(1)
|
2,114.2
|
|
|
13
|
%
|
|
1,795.8
|
|
|
12
|
%
|
|
1,552.1
|
|
|
12
|
%
|
|||
Total
|
$
|
16,447.8
|
|
|
100
|
%
|
|
$
|
14,866.8
|
|
|
100
|
%
|
|
$
|
13,276.8
|
|
|
100
|
%
|
(1)
|
"Other" primarily includes royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and serveware, among other items.
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||
Net revenues from external customers:
|
|
|
|
|
|
||||||
United States
|
$
|
12,590.6
|
|
|
$
|
11,389.6
|
|
|
$
|
10,154.8
|
|
Other countries
|
3,857.2
|
|
|
3,477.2
|
|
|
3,122.0
|
|
|||
Total
|
$
|
16,447.8
|
|
|
$
|
14,866.8
|
|
|
$
|
13,276.8
|
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||
Long-lived assets:
|
|
|
|
|
|
||||||
United States
|
$
|
5,135.8
|
|
|
$
|
4,641.3
|
|
|
$
|
2,767.1
|
|
Other countries
|
1,448.4
|
|
|
1,404.0
|
|
|
1,252.5
|
|
|||
Total
|
$
|
6,584.2
|
|
|
$
|
6,045.3
|
|
|
$
|
4,019.6
|
|
(
in millions
)
|
Americas
|
|
EMEA
|
|
China /
Asia Pacific
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
Fiscal 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
11,980.5
|
|
|
$
|
1,294.8
|
|
|
$
|
1,129.6
|
|
|
$
|
1,546.0
|
|
|
$
|
496.9
|
|
|
$
|
16,447.8
|
|
Depreciation and amortization expenses
|
469.5
|
|
|
59.4
|
|
|
46.1
|
|
|
1.8
|
|
|
15.2
|
|
|
592.0
|
|
||||||
Income from equity investees
|
—
|
|
|
3.7
|
|
|
164.0
|
|
|
100.6
|
|
|
—
|
|
|
268.3
|
|
||||||
Operating income/(loss)
|
2,809.0
|
|
|
119.2
|
|
|
372.5
|
|
|
557.2
|
|
|
(26.8
|
)
|
|
3,831.1
|
|
||||||
Total assets
|
2,521.4
|
|
|
663.0
|
|
|
939.8
|
|
|
84.6
|
|
|
825.2
|
|
|
5,034.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
11,000.8
|
|
|
$
|
1,160.0
|
|
|
$
|
917.0
|
|
|
$
|
1,398.9
|
|
|
$
|
390.1
|
|
|
$
|
14,866.8
|
|
Depreciation and amortization expenses
|
429.3
|
|
|
55.5
|
|
|
33.8
|
|
|
1.1
|
|
|
11.7
|
|
|
531.4
|
|
||||||
Income from equity investees
|
2.4
|
|
|
0.4
|
|
|
152.0
|
|
|
96.6
|
|
|
—
|
|
|
251.4
|
|
||||||
Operating income/(loss)
|
2,365.2
|
|
|
64.2
|
|
|
321.2
|
|
|
415.5
|
|
|
(34.5
|
)
|
|
3,131.6
|
|
||||||
Total assets
|
2,323.4
|
|
|
510.6
|
|
|
805.0
|
|
|
89.2
|
|
|
821.1
|
|
|
4,549.3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
9,936.0
|
|
|
$
|
1,141.3
|
|
|
$
|
721.4
|
|
|
$
|
1,273.0
|
|
|
$
|
205.1
|
|
|
$
|
13,276.8
|
|
Depreciation and amortization expenses
|
392.4
|
|
|
57.1
|
|
|
23.2
|
|
|
1.3
|
|
|
2.5
|
|
|
476.5
|
|
||||||
Income from equity investees
|
2.1
|
|
|
0.3
|
|
|
122.4
|
|
|
85.2
|
|
|
0.7
|
|
|
210.7
|
|
||||||
Operating income/(loss)
|
2,020.4
|
|
|
6.8
|
|
|
252.6
|
|
|
340.4
|
|
|
(27.4
|
)
|
|
2,592.8
|
|
||||||
Total assets
|
2,199.0
|
|
|
467.4
|
|
|
656.6
|
|
|
88.8
|
|
|
80.8
|
|
|
3,492.6
|
|
Fiscal Year Ended
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|
Sep 30, 2012
|
||||||
Total segment operating income
|
$
|
3,831.1
|
|
|
$
|
3,131.6
|
|
|
$
|
2,592.8
|
|
Unallocated corporate operating expenses
(1)
|
(750.0
|
)
|
|
(3,457.0
|
)
|
|
(595.4
|
)
|
|||
Consolidated operating income/(loss)
|
3,081.1
|
|
|
(325.4
|
)
|
|
1,997.4
|
|
|||
Interest income and other, net
|
142.7
|
|
|
123.6
|
|
|
94.4
|
|
|||
Interest expense
|
(64.1
|
)
|
|
(28.1
|
)
|
|
(32.7
|
)
|
|||
Earnings/(loss) before income taxes
|
$
|
3,159.7
|
|
|
$
|
(229.9
|
)
|
|
$
|
2,059.1
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
||||||||||
Fiscal 2014:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
4,239.6
|
|
|
$
|
3,873.8
|
|
|
$
|
4,153.7
|
|
|
$
|
4,180.8
|
|
|
$
|
16,447.8
|
|
Operating income
|
813.5
|
|
|
644.1
|
|
|
768.5
|
|
|
854.9
|
|
|
3,081.1
|
|
|||||
Net earnings attributable to Starbucks
|
540.7
|
|
|
427.0
|
|
|
512.6
|
|
|
587.9
|
|
|
2,068.1
|
|
|||||
EPS — diluted
|
0.71
|
|
|
0.56
|
|
|
0.67
|
|
|
0.77
|
|
|
2.71
|
|
|||||
Fiscal 2013:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
(1)
|
$
|
3,793.2
|
|
|
$
|
3,549.6
|
|
|
$
|
3,735.3
|
|
|
$
|
3,788.8
|
|
|
$
|
14,866.8
|
|
Operating income/(loss)
(2)
|
630.6
|
|
|
544.1
|
|
|
615.2
|
|
|
(2,115.2
|
)
|
|
(325.4
|
)
|
|||||
Net earnings/(loss) attributable to Starbucks
(2)
|
432.2
|
|
|
390.4
|
|
|
417.8
|
|
|
(1,232.0
|
)
|
|
8.3
|
|
|||||
EPS — diluted
(2)
|
0.57
|
|
|
0.51
|
|
|
0.55
|
|
|
(1.64
|
)
|
|
0.01
|
|
(1)
|
Includes the reclassifications resulting from the correction of the immaterial error discussed in
Note 1
, Summary of Significant Accounting Policies. We reclassified
$6.4 million
,
$6.3 million
,
$6.4 million
and
$6.2 million
for the first, second, third, and fourth quarters of fiscal year 2013, respectively, and
$25.4 million
for the full year of fiscal 2013.
|
(2)
|
The fourth quarter of fiscal 2013 includes a pretax charge of
$2,784.1 million
resulting from the conclusion of the arbitration with Kraft.
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
•
|
Consolidated Statements of Earnings for the fiscal years ended
September 28, 2014
,
September 29, 2013
, and
September 30, 2012
;
|
•
|
Consolidated Statements of Comprehensive Income for the fiscal years ended
September 28, 2014
,
September 29, 2013
, and
September 30, 2012
;
|
•
|
Consolidated Balance Sheets as of
September 28, 2014
and
September 29, 2013
;
|
•
|
Consolidated Statements of Cash Flows for the fiscal years ended
September 28, 2014
,
September 29, 2013
, and
September 30, 2012
;
|
•
|
Consolidated Statements of Equity for the fiscal years ended
September 28, 2014
,
September 29, 2013
, and
September 30, 2012
;
|
•
|
Notes to Consolidated Financial Statements; and
|
•
|
Reports of Independent Registered Public Accounting Firm
|
|
|
|
|
STARBUCKS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Howard Schultz
|
|
|
Howard Schultz
chairman, president and chief executive officer
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
By:
|
|
/s/ Howard Schultz
|
|
chairman, president and chief executive officer
|
|
|
Howard Schultz
|
|
|
|
|
|
|
|
By:
|
|
/s/ Scott Maw
|
|
executive vice president, chief financial officer
(principal financial officer and principal accounting officer)
|
|
|
Scott Maw
|
|
|
|
|
|
|
|
By:
|
|
/s/ William W. Bradley
|
|
director
|
|
|
William W. Bradley
|
|
|
|
|
|
|
|
By:
|
|
/s/ Robert M. Gates
|
|
director
|
|
|
Robert M. Gates
|
|
|
|
|
|
|
|
By:
|
|
/s/ Mellody Hobson
|
|
director
|
|
|
Mellody Hobson
|
|
|
|
|
|
|
|
By:
|
|
/s/ Kevin R. Johnson
|
|
director
|
|
|
Kevin R. Johnson
|
|
|
|
|
|
|
|
By:
|
|
/s/ Olden Lee
|
|
director
|
|
|
Olden Lee
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
By:
|
|
/s/ Joshua Cooper Ramo
|
|
director
|
|
|
Joshua Cooper Ramo
|
|
|
|
|
|
|
|
By:
|
|
/s/ James G. Shennan, Jr.
|
|
director
|
|
|
James G. Shennan, Jr.
|
|
|
|
|
|
|
|
By:
|
|
/s/ Clara Shih
|
|
director
|
|
|
Clara Shih
|
|
|
|
|
|
|
|
By:
|
|
/s/ Javier G. Teruel
|
|
director
|
|
|
Javier G. Teruel
|
|
|
|
|
|
|
|
By:
|
|
/s/ Myron E. Ullman, III
|
|
director
|
|
|
Myron E. Ullman, III
|
|
|
|
|
|
|
|
By:
|
|
/s/ Craig E. Weatherup
|
|
director
|
|
|
Craig E. Weatherup
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
2.1
|
|
Agreement and Plan of Merger, dated as of November 14, 2012, among Starbucks Corporation, Taj Acquisition Corp. and Teavana Holdings, Inc.
|
|
8-K
|
|
0-20322
|
|
11/15/2012
|
|
2.1
|
|
|
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
|
|
|
4.1
|
|
Indenture, dated as of August 23, 2007, by and between Starbucks Corporation and Deutsche Bank Trust Company Americas, as trustee
|
|
S-3ASR
|
|
333-190955
|
|
9/3/2013
|
|
4.1
|
|
|
4.2
|
|
Form of Note for 6.25% Senior Notes due 2017
|
|
8-K
|
|
0-20322
|
|
8/23/2007
|
|
4.2
|
|
|
4.3
|
|
Form of Supplemental Indenture for 6.25% Senior Notes due 2017
|
|
8-K
|
|
0-20322
|
|
8/23/2007
|
|
4.3
|
|
|
4.4
|
|
Second Supplemental Indenture, dated as of September 6, 2013, by and between Starbucks Corporation and Deutsche Bank Trust Company Americas, as trustee (3.850% Senior Notes due October 1, 2023)
|
|
8-K
|
|
0-20322
|
|
9/6/2013
|
|
4.2
|
|
|
4.5
|
|
Form of 3.850% Senior Notes due October 1, 2023
|
|
8-K
|
|
0-20322
|
|
9/6/2013
|
|
4.3
|
|
|
4.6
|
|
Third Supplemental Indenture, dated as of December 5, 2013, by and between Starbucks Corporation and Deutsche Bank Trust Company Americas, as trustee (0.875% Senior Notes due 2016 and 2.000% Senior Notes due 2018)
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.2
|
|
|
4.7
|
|
Form of 0.875% Senior Notes due December 5, 2016
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.3
|
|
|
4.8
|
|
Form of 2.000% Senior Notes due December 5, 2018
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.4
|
|
|
10.1*
|
|
Starbucks Corporation Amended and Restated Key Employee Stock Option Plan — 1994, as amended and restated through March 18, 2009
|
|
8-K
|
|
0-20322
|
|
3/20/2009
|
|
10.2
|
|
|
10.2*
|
|
Starbucks Corporation Amended and Restated 1989 Stock Option Plan for Non-Employee Directors
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.2
|
|
|
10.3*
|
|
Starbucks Corporation 1991 Company-Wide Stock Option Plan, as amended and restated through March 18, 2009
|
|
8-K
|
|
0-20322
|
|
3/20/2009
|
|
10.3
|
|
|
10.3.1*
|
|
Starbucks Corporation 1991 Company-Wide Stock Option Plan — Rules of the UK Sub-Plan, as amended and restated through November 20, 2003
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.3.1
|
|
|
10.4*
|
|
Starbucks Corporation Employee Stock Purchase Plan — 1995 as amended and restated through April 1, 2009
|
|
10-Q
|
|
0-20322
|
|
2/4/2009
|
|
10.6
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
10.5
|
|
Amended and Restated Lease, dated as of January 1, 2001, between First and Utah Street Associates, L.P. and Starbucks Corporation
|
|
10-K
|
|
0-20322
|
|
12/20/2001
|
|
10.5
|
|
|
10.6*
|
|
Starbucks Corporation Executive Management Bonus Plan, as amended and restated effective November 8, 2011
|
|
10-Q
|
|
0-20322
|
|
5/2/2012
|
|
10.2
|
|
|
10.7*
|
|
Starbucks Corporation Management Deferred Compensation Plan, as amended and restated effective January 1, 2011
|
|
10-Q
|
|
0-20322
|
|
2/4/2011
|
|
10.2
|
|
|
10.8*
|
|
Starbucks Corporation 1997 Deferred Stock Plan
|
|
10-K
|
|
0-20322
|
|
12/23/1999
|
|
10.17
|
|
|
10.9*
|
|
Starbucks Corporation UK Share Save Plan
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.9
|
|
|
10.10*
|
|
Starbucks Corporation Directors Deferred Compensation Plan, as amended and restated effective September 29, 2003
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.10
|
|
|
10.11*
|
|
Starbucks Corporation Deferred Compensation Plan for Non-Employee Directors, effective October 3, 2011
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.11
|
|
|
10.12*
|
|
Starbucks Corporation UK Share Incentive Plan, as amended and restated effective November 14, 2006
|
|
10-K
|
|
0-20322
|
|
12/14/2006
|
|
10.12
|
|
|
10.13*
|
|
Starbucks Corporation 2005 Long-Term Equity Incentive Plan, as amended and restated effective March 20, 2013
|
|
S-8
|
|
333-191512
|
|
10/1/2013
|
|
99.1
|
|
|
10.14*
|
|
2005 Key Employee Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan, as amended and restated effective November 15, 2005
|
|
10-Q
|
|
0-20322
|
|
2/10/2006
|
|
10.2
|
|
|
10.15*
|
|
2005 Non-Employee Director Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan, as amended and restated effective September 13, 2011
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.17
|
|
|
10.16*
|
|
Form of Stock Option Grant Agreement for Purchase of Stock under the Key Employee Sub-Plan to the 2005 Long-Term Equity Incentive Plan
|
|
10-Q
|
|
0-20322
|
|
5/2/2012
|
|
10.1
|
|
|
10.17*
|
|
Form of Global Stock Option Grant Agreement for Purchase of Stock under the Key Employee Sub-Plan to the 2005 Long Term Equity Incentive Plan
|
|
10-K
|
|
0-20322
|
|
11/18/2013
|
|
10.17
|
|
|
10.18*
|
|
Form of Stock Option Grant Agreement for Purchase of Stock under the 2005 Non-Employee Director Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan
|
|
8-K
|
|
0-20322
|
|
2/10/2005
|
|
10.5
|
|
|
10.19*
|
|
Form of Restricted Stock Unit Grant Agreement under the 2005 Non-Employee Director Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.20
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
10.20*
|
|
2005 Company-Wide Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan, as amended and restated on September 14, 2010
|
|
10-K
|
|
0-20322
|
|
11/22/2010
|
|
10.20
|
|
|
10.21*
|
|
Form of Stock Option Grant Agreement for Purchase of Stock under the 2005 Company-Wide Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan
|
|
10-Q
|
|
0-20322
|
|
8/10/2005
|
|
10.2
|
|
|
10.22
|
|
Credit Agreement dated February 5, 2013 among Starbucks Corporation, Bank of America, N.A., in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, and the other Lenders from time to time a party thereto.
|
|
8-K
|
|
0-20322
|
|
2/8/2013
|
|
10.1
|
|
|
10.23
|
|
Amendment No.1 dated November 15, 2013 to Credit Agreement dated February 5, 2013 among Starbucks Corporation, Bank of America, N.A., in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, and the other Lenders from time to time a party thereto.
|
|
10-K
|
|
0-20322
|
|
11/18/2013
|
|
10.23
|
|
|
10.24
|
|
Commercial Paper Dealer Agreement between Starbucks Corporation and Banc of America Securities LLC, dated as of March 27, 2007
|
|
8-K
|
|
0-20322
|
|
3/27/2007
|
|
10.1.1
|
|
|
10.25
|
|
Commercial Paper Dealer Agreement between Starbucks Corporation and Goldman, Sachs & Co., dated as of March 27, 2007
|
|
8-K
|
|
0-20322
|
|
3/27/2007
|
|
10.1.2
|
|
|
10.26*
|
|
Letter Agreement dated February 21, 2008 between Starbucks Corporation and Clifford Burrows
|
|
10-Q
|
|
0-20322
|
|
5/8/2008
|
|
10.3
|
|
|
10.27*
|
|
Letter Agreement dated November 6, 2008 between Starbucks Corporation and Troy Alstead
|
|
8-K
|
|
0-20322
|
|
11/12/2008
|
|
10.1
|
|
|
10.28*
|
|
Form of Time Vested Restricted Stock Unit Grant Agreement (US) under the Key Employee Sub-Plan to the 2005 Long-Term Equity Incentive Plan
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.30
|
|
|
10.29*
|
|
Form of Time Vested Global Restricted Stock Unit Grant Agreement under the Key Employee Sub-Plan to the 2005 Long-Term Equity Incentive Plan
|
|
10-K
|
|
0-20322
|
|
11/18/2013
|
|
10.29
|
|
|
10.30*
|
|
Form of Performance Based Global Restricted Stock Unit Grant Agreement under the Key Employee Sub-Plan to the 2005 Long-Term Equity Incentive Plan
|
|
10-K
|
|
0-20322
|
|
11/18/2013
|
|
10.30
|
|
|
10.31*
|
|
Letter Agreement dated November 30, 2009 between Starbucks Corporation and John Culver
|
|
10-Q
|
|
0-20322
|
|
2/2/2010
|
|
10.3
|
|
|
10.32*
|
|
Letter of Understanding dated May 22, 2013, between Starbucks Corporation and Jeff Hansberry
|
|
10-K
|
|
0-20322
|
|
11/18/2013
|
|
10.32
|
|
|
10.33*
|
|
Letter Agreement dated May 16, 2012 between Starbucks Corporation and Lucy Lee Helm
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
10.34*
|
|
Letter Agreement dated January 29, 2014 between Starbucks Corporation and Troy Alstead
|
|
8-K
|
|
0-20322
|
|
1/29/2014
|
|
10.1
|
|
|
10.35*
|
|
Letter Agreement dated January 29, 2014 between Starbucks Corporation and Scott Maw
|
|
8-K
|
|
0-20322
|
|
1/29/2014
|
|
10.2
|
|
|
10.36*
|
|
Exclusive Aircraft Sublease (S/N 6003) dated as of September 27, 2013 by and between Cloverdale Services, LLC and Starbucks Corporation
|
|
10-Q
|
|
0-20322
|
|
4/29/2014
|
|
10.3
|
|
|
12
|
|
Computation of Ratio of Earnings to Fixed Charges
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
21
|
|
Subsidiaries of Starbucks Corporation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
23
|
|
Consent of Independent Registered Public Accounting Firm
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
24
|
|
Power of Attorney (included on the Signatures page of this Annual Report on Form 10-K)
|
|
__
|
|
__
|
|
__
|
|
__
|
|
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-K for the fiscal year ended September 28, 2014, formatted in XBRL: (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income, (iii)Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity, and (vi) Notes to Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Oct 2,
2011 |
|
Oct 3,
2010 |
||||||||||
Fiscal year ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings/(loss)
(1)
|
|
$
|
3,159.7
|
|
|
$
|
(229.9
|
)
|
|
$
|
2,059.1
|
|
|
$
|
1,811.1
|
|
|
$
|
1,437.0
|
|
Income from equity investees
|
|
(268.3
|
)
|
|
(251.4
|
)
|
|
(210.7
|
)
|
|
(173.7
|
)
|
|
(148.1
|
)
|
|||||
Distributed income from equity investees
|
|
139.2
|
|
|
115.6
|
|
|
86.7
|
|
|
85.6
|
|
|
91.4
|
|
|||||
Amortization of capitalized interest
|
|
3.6
|
|
|
2.6
|
|
|
2.2
|
|
|
1.8
|
|
|
1.2
|
|
|||||
Fixed charges, excluding capitalized interest
|
|
310.1
|
|
|
237.7
|
|
|
224.5
|
|
|
252.0
|
|
|
266.3
|
|
|||||
Total earnings/(loss) available for fixed charges
|
|
$
|
3,344.3
|
|
|
$
|
(125.4
|
)
|
|
$
|
2,161.8
|
|
|
$
|
1,976.8
|
|
|
$
|
1,647.8
|
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and debt expense
(2)
|
|
$
|
70.2
|
|
|
$
|
38.5
|
|
|
$
|
35.9
|
|
|
$
|
37.7
|
|
|
$
|
37.7
|
|
Interest portion of rental expense
|
|
246.0
|
|
|
209.6
|
|
|
191.8
|
|
|
218.7
|
|
|
233.5
|
|
|||||
Total fixed charges
|
|
$
|
316.2
|
|
|
$
|
248.1
|
|
|
$
|
227.7
|
|
|
$
|
256.4
|
|
|
$
|
271.2
|
|
Ratio of earnings to fixed charges
(3)
|
|
10.6
|
|
|
—
|
|
|
9.5
|
|
|
7.7
|
|
|
6.1
|
|
Entity Name
|
|
Organized Under the Laws of:
|
Alki Limited Partnership
|
|
United Kingdom
|
AmRest Coffee s.r.o.
|
|
Czech Republic
|
AmRest Coffee Sp. z o. o.
|
|
Poland
|
AmRest Kavezo Kft.
|
|
Hungary
|
Bay Bread LLC (dba La Boulange)
|
|
Delaware
|
Beijing Starbucks Coffee Co., Ltd.
|
|
China
|
Chengdu Starbucks Coffee Company Limited
|
|
China
|
Coffee Concepts (Southern China) Limited
|
|
Hong Kong
|
Coffee House Holdings, Inc.
|
|
Washington
|
Corporacion Starbucks Farmer Support Center Columbia
|
|
Columbia
|
Emerald City C.V.
|
|
Netherlands
|
Evolution Fresh, Inc.
|
|
Delaware
|
Guangdong Starbucks Coffee Company Limited
|
|
China
|
High Grown Investment Group (Hong Kong) Ltd.
|
|
Hong Kong
|
Hubei Starbucks Coffee Company Limited
|
|
China
|
Koffee Sirena LLC
|
|
Russia
|
North American Coffee Partnership
|
|
New York
|
Olympic Casualty Insurance Company
|
|
Vermont
|
President Coffee (Cayman) Holdings Ltd.
|
|
Cayman Islands
|
President Starbucks Coffee (Shanghai) Company Limited
|
|
China
|
President Starbucks Coffee Corporation
|
|
Taiwan (Republic of China)
|
Qingdao American Starbucks Coffee Company Limited
|
|
China
|
Rain City C.V.
|
|
Netherlands
|
SBI Nevada, Inc.
|
|
Nevada
|
SCI Europe I, LLC
|
|
Washington
|
SCI Europe II, LLC
|
|
Washington
|
SCI Investment, Inc.
|
|
Washington
|
SCI UK I, LLC
|
|
Washington
|
SCI Ventures, S.L.
|
|
Spain
|
Seastar Columbia Company S.A.S
|
|
Columbia
|
Seattle Coffee Company
|
|
Georgia
|
Seattle’s Best Coffee LLC
|
|
Washington
|
Shaya Coffee Limited
|
|
Cyprus
|
Solar Japan Holdings G.K.
|
|
Japan
|
Starbucks (China) Company Limited
|
|
China
|
Starbucks (Shanghai) Supply Chain Co., Ltd.
|
|
China
|
Starbucks (Shanghai) Trade Company Limited
|
|
China
|
Starbucks AINI Coffee (Yunnan) Company Limited
|
|
China
|
Starbucks Asia Pacific Investment Holding II Limited
|
|
Hong Kong
|
Starbucks Asia Pacific Investment Holding III Limited
|
|
Hong Kong
|
Starbucks Asia Pacific Investment Holding Limited
|
|
Hong Kong
|
Starbucks Brasil Comércio de Cafés Ltda.
|
|
Brazil
|
Starbucks Capital Asset Leasing Company, LLC
|
|
Delaware
|
Starbucks Card Europe Limited
|
|
United Kingdom
|
Starbucks Coffee (Dalian) Company Limited
|
|
China
|
Starbucks Coffee (Liaoning) Company Limited
|
|
China
|
Starbucks Coffee (Shenzhen) Ltd.
|
|
China
|
Starbucks Coffee (Thailand) Ltd.
|
|
Thailand
|
Starbucks Coffee Agronomy Company S.R.L.
|
|
Costa Rica
|
Starbucks Coffee Asia Pacific Limited
|
|
Hong Kong
|
Starbucks Coffee Austria GmbH
|
|
Austria
|
Starbucks Coffee Canada, Inc.
|
|
Canada
|
Starbucks Coffee Company (Australia) Pty Ltd
|
|
Australia
|
Starbucks Coffee Company (UK) Limited
|
|
United Kingdom
|
Starbucks Coffee Deutschland GmbH
|
|
Germany
|
Starbucks Coffee Development (Yunan) Company Limited
|
|
China
|
Starbucks Coffee EMEA B.V.
|
|
Netherlands
|
Starbucks Coffee España S.L.
|
|
Spain
|
Starbucks Coffee France S.A.S.
|
|
France
|
Starbucks Coffee Holdings (UK) Limited
|
|
United Kingdom
|
Starbucks Coffee International, Inc.
|
|
Washington
|
Starbucks Coffee Japan, Ltd.
|
|
Japan
|
Starbucks Coffee Korea Co., Ltd.
|
|
South Korea
|
Starbucks Coffee Netherlands B.V.
|
|
Netherlands
|
Starbucks Coffee Puerto Rico, LLC
|
|
Delaware
|
Starbucks Coffee Singapore Pte Ltd
|
|
Singapore
|
Starbucks Coffee Switzerland A.G.
|
|
Switzerland
|
Starbucks Coffee Trading Company Sarl
|
|
Switzerland
|
Starbucks EMEA Holdings Ltd
|
|
United Kingdom
|
Starbucks EMEA Ltd
|
|
United Kingdom
|
Starbucks Farmer Support Center Ethiopia Plc.
|
|
Ethiopia
|
Starbucks Farmer Support Center Rwanda Ltd.
|
|
Rwanda
|
Starbucks Farmer Support Center Tanzania Limited
|
|
Tanzania
|
Starbucks Holding Company
|
|
Washington
|
Starbucks International (Holdings) Ltd
|
|
United Kingdom
|
Starbucks Manufacturing Corporation
|
|
Washington
|
Starbucks Manufacturing EMEA B.V.
|
|
Netherlands
|
Starbucks New Venture Company
|
|
Washington
|
Starbucks Singapore Investment Pte.
|
|
Singapore
|
Starbucks Switzerland Austria Holdings B.V.
|
|
Netherlands
|
Starbucks Trading, G.K.
|
|
Japan
|
Tata Starbucks Limited
|
|
India
|
Teavana Canada, ULC
|
|
British Columbia
|
Teavana Corporation
|
|
Georgia
|
Teavana Gift Company
|
|
Colorado
|
Teavana Luxco, Sarl
|
|
Luxembourg
|
The New French Bakery, Inc.
|
|
California
|
Torrefazione Italia LLC
|
|
Washington
|
Torz and Macatonia Limited
|
|
United Kingdom
|
Xi’an Starbucks Coffee Company Limited
|
|
China
|
1.
|
I have reviewed this Annual Report on Form 10-K for the fiscal year ended
September 28, 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 Annual Report on Form 10-K for the fiscal year ended
September 28, 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, 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, chief financial officer
|