Washington
|
|
91-1325671
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(State of Incorporation)
|
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(IRS Employer ID)
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Title of Each Class
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Name of Each Exchange on Which Registered
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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
|
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
|
¨
|
PART I
|
||
Item 1
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||
Item 1A
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||
Item 1B
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||
Item 2
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||
Item 3
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||
Item 4
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||
PART II
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||
Item 5
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||
Item 6
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||
Item 7
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||
Item 7A
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||
Item 8
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||
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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
|
|
CAP
|
|
As a% of
Total CAP Stores |
|
EMEA
|
|
As a% of
Total
EMEA Stores
|
|
All Other Segments
|
|
As a% of
Total
All Other Segments Stores
|
|
Total
|
|
As a% of
Total
Stores
|
||||||||||
Company-operated stores
|
8,671
|
|
|
59
|
%
|
|
2,452
|
|
|
45
|
%
|
|
737
|
|
|
31
|
%
|
|
375
|
|
|
90
|
%
|
|
12,235
|
|
|
53
|
%
|
Licensed stores
|
6,132
|
|
|
41
|
%
|
|
3,010
|
|
|
55
|
%
|
|
1,625
|
|
|
69
|
%
|
|
41
|
|
|
10
|
%
|
|
10,808
|
|
|
47
|
%
|
Total
|
14,803
|
|
|
100
|
%
|
|
5,462
|
|
|
100
|
%
|
|
2,362
|
|
|
100
|
%
|
|
416
|
|
|
100
|
%
|
|
23,043
|
|
|
100
|
%
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Sep 28, 2014
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Sep 27, 2015
|
||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
7,303
|
|
|
312
|
|
|
(56
|
)
|
|
—
|
|
|
256
|
|
|
7,559
|
|
Canada
|
983
|
|
|
41
|
|
|
(15
|
)
|
|
—
|
|
|
26
|
|
|
1,009
|
|
Brazil
|
89
|
|
|
18
|
|
|
(4
|
)
|
|
—
|
|
|
14
|
|
|
103
|
|
Puerto Rico
|
20
|
|
|
—
|
|
|
(1
|
)
|
|
(19
|
)
|
|
(20
|
)
|
|
—
|
|
Total Americas
|
8,395
|
|
|
371
|
|
|
(76
|
)
|
|
(19
|
)
|
|
276
|
|
|
8,671
|
|
China/Asia Pacific
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Japan
|
—
|
|
|
77
|
|
|
(13
|
)
|
|
1,009
|
|
|
1,073
|
|
|
1,073
|
|
China
|
823
|
|
|
212
|
|
|
(9
|
)
|
|
—
|
|
|
203
|
|
|
1,026
|
|
Thailand
|
203
|
|
|
36
|
|
|
(2
|
)
|
|
—
|
|
|
34
|
|
|
237
|
|
Singapore
|
106
|
|
|
14
|
|
|
(4
|
)
|
|
—
|
|
|
10
|
|
|
116
|
|
Total China/Asia Pacific
|
1,132
|
|
|
339
|
|
|
(28
|
)
|
|
1,009
|
|
|
1,320
|
|
|
2,452
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.K.
|
506
|
|
|
4
|
|
|
(18
|
)
|
|
(64
|
)
|
|
(78
|
)
|
|
428
|
|
Germany
|
152
|
|
|
2
|
|
|
(5
|
)
|
|
—
|
|
|
(3
|
)
|
|
149
|
|
France
|
78
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
76
|
|
Switzerland
|
55
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
56
|
|
Austria
|
17
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
18
|
|
Netherlands
|
9
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
10
|
|
Total EMEA
|
817
|
|
|
9
|
|
|
(25
|
)
|
|
(64
|
)
|
|
(80
|
)
|
|
737
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Teavana
|
365
|
|
|
11
|
|
|
(5
|
)
|
|
—
|
|
|
6
|
|
|
371
|
|
Evolution Fresh
|
4
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
3
|
|
Starbucks Reserve
®
Roastery & Tasting Room
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Total All Other Segments
|
369
|
|
|
12
|
|
|
(6
|
)
|
|
—
|
|
|
6
|
|
|
375
|
|
Total company-operated
|
10,713
|
|
|
731
|
|
|
(135
|
)
|
|
926
|
|
|
1,522
|
|
|
12,235
|
|
(1)
|
China/Asia Pacific store data includes the transfer of 1,009 Japan stores from licensed stores to company-operated as a result of the acquisition of Starbucks Japan in the first quarter of fiscal 2015.
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|||
Beverages
|
73
|
%
|
|
73
|
%
|
|
74
|
%
|
Food
|
19
|
%
|
|
18
|
%
|
|
18
|
%
|
Packaged and single-serve coffees and teas
|
3
|
%
|
|
4
|
%
|
|
4
|
%
|
Other
(1)
|
5
|
%
|
|
5
|
%
|
|
4
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
"Other" primarily consists of sales of ready-to-drink beverages, serveware and coffee-making equipment, among other items.
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Sep 28, 2014
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Sep 27, 2015
|
||||||
Americas
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
4,659
|
|
|
357
|
|
|
(54
|
)
|
|
—
|
|
|
303
|
|
|
4,962
|
|
Mexico
|
434
|
|
|
73
|
|
|
(1
|
)
|
|
—
|
|
|
72
|
|
|
506
|
|
Canada
|
462
|
|
|
23
|
|
|
(136
|
)
|
|
—
|
|
|
(113
|
)
|
|
349
|
|
Other
|
241
|
|
|
55
|
|
|
—
|
|
|
19
|
|
|
74
|
|
|
315
|
|
Total Americas
|
5,796
|
|
|
508
|
|
|
(191
|
)
|
|
19
|
|
|
336
|
|
|
6,132
|
|
China/Asia Pacific
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
South Korea
|
700
|
|
|
149
|
|
|
(18
|
)
|
|
—
|
|
|
131
|
|
|
831
|
|
China
|
544
|
|
|
244
|
|
|
(3
|
)
|
|
—
|
|
|
241
|
|
|
785
|
|
Taiwan
|
323
|
|
|
41
|
|
|
(8
|
)
|
|
—
|
|
|
33
|
|
|
356
|
|
Philippines
|
240
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
264
|
|
Japan
|
1,060
|
|
|
22
|
|
|
(15
|
)
|
|
(1,009
|
)
|
|
(1,002
|
)
|
|
58
|
|
Other
|
625
|
|
|
101
|
|
|
(10
|
)
|
|
—
|
|
|
91
|
|
|
716
|
|
Total China/Asia Pacific
|
3,492
|
|
|
581
|
|
|
(54
|
)
|
|
(1,009
|
)
|
|
(482
|
)
|
|
3,010
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.K.
|
285
|
|
|
65
|
|
|
(1
|
)
|
|
65
|
|
|
129
|
|
|
414
|
|
Turkey
|
220
|
|
|
44
|
|
|
(4
|
)
|
|
—
|
|
|
40
|
|
|
260
|
|
United Arab Emirates
|
115
|
|
|
18
|
|
|
(2
|
)
|
|
—
|
|
|
16
|
|
|
131
|
|
Russia
|
87
|
|
|
21
|
|
|
(4
|
)
|
|
—
|
|
|
17
|
|
|
104
|
|
Spain
|
86
|
|
|
4
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
89
|
|
Kuwait
|
72
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
77
|
|
Saudi Arabia
|
67
|
|
|
8
|
|
|
(4
|
)
|
|
—
|
|
|
4
|
|
|
71
|
|
Other
|
391
|
|
|
92
|
|
|
(3
|
)
|
|
(1
|
)
|
|
88
|
|
|
479
|
|
Total EMEA
|
1,323
|
|
|
257
|
|
|
(19
|
)
|
|
64
|
|
|
302
|
|
|
1,625
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Teavana
|
29
|
|
|
8
|
|
|
(2
|
)
|
|
—
|
|
|
6
|
|
|
35
|
|
Seattle's Best Coffee
|
13
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
6
|
|
Total All Other Segments
|
42
|
|
|
8
|
|
|
(9
|
)
|
|
—
|
|
|
(1
|
)
|
|
41
|
|
Total licensed
|
10,653
|
|
|
1,354
|
|
|
(273
|
)
|
|
(926
|
)
|
|
155
|
|
|
10,808
|
|
(1)
|
Americas store data includes the closure of 132 Target Canada licensed stores in the second quarter of fiscal 2015.
|
(2)
|
China/Asia Pacific store data includes the transfer of 1,009 Japan stores from licensed stores to company-operated as a result of the acquisition of Starbucks Japan in the first quarter of fiscal 2015.
|
Name
|
|
Age
|
|
Position
|
Howard Schultz
|
|
62
|
|
chairman and chief executive officer
|
Kevin R. Johnson
|
|
55
|
|
president and chief operating officer
|
Cliff Burrows
|
|
56
|
|
group president, U.S. and Americas
|
John Culver
|
|
55
|
|
group president, China, Asia Pacific, Channel Development and Emerging Brands
|
Scott Maw
|
|
48
|
|
executive vice president, chief financial officer
|
Lucy Lee Helm
|
|
58
|
|
executive vice president, general counsel and secretary
|
•
|
Economic conditions in the U.S. and 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 or by third parties on our behalf 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 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.
|
•
|
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.
|
•
|
being an employer of choice and investing in employees to deliver a superior customer experience;
|
•
|
building our leadership position around coffee;
|
•
|
increasing the scale of the Starbucks store footprint with disciplined global expansion and introducing flexible and unique store formats;
|
•
|
creating new occasions in stores across all dayparts with new product offerings;
|
•
|
continuing the global growth of our Channel Development business;
|
•
|
delivering continued growth in our tea business through the Teavana brand; and
|
•
|
driving convenience and brand engagement through our mobile, loyalty and digital capabilities.
|
•
|
increases in labor costs, both domestically and internationally, such as general market and minimum wage levels and investing in competitive compensation, increased health care and workers’ compensation insurance costs and other benefits to attract and retain high quality employees, whether due to regulatory mandates or changing industry practices;
|
•
|
increasing competition in channels in which we operate or seek to operate from new and existing large competitors that sell high-quality specialty coffee beverages;
|
•
|
construction cost increases associated with new store openings and remodeling of existing stores; delays in store openings for reasons beyond our control or a lack of desirable real estate locations available for lease at reasonable rates, either of which could keep us from meeting annual store opening targets in the U.S. and internationally;
|
•
|
not successfully scaling our supply chain infrastructure as our product offerings increase and as we continue to expand;
|
•
|
the ability of our licensee partners to implement our growth platforms and product innovation;
|
•
|
lack of customer acceptance of new products (including due to price increases necessary to cover the costs of new products or higher input costs), brands (such as the global expansion of Teavana) and platforms (such as mobile technology), or customers reducing their demand for our current offerings as new products are introduced;
|
•
|
the degree to which we enter into, maintain, develop and are able to negotiate appropriate terms and conditions of, and enforce, commercial and other agreements;
|
•
|
not successfully consummating favorable strategic transactions or integrating acquired businesses; and
|
•
|
the deterioration in our credit ratings, which could limit the availability of additional financing and increase the cost of obtaining financing to fund our initiatives.
|
•
|
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 U.S. governmental authorities affecting trade and foreign investment, especially during periods of heightened tension between the U.S. 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 U.S. 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 real estate costs in certain domestic and international markets;
|
•
|
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.
|
•
|
Failure to comply with applicable laws and changing legal and regulatory requirements 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
|
Stratford, CT
|
81,000
|
|
|
Warehouse and distribution
|
Augusta, GA
|
131,000
|
|
|
Manufacturing
|
Minden, NV (Carson Valley)
|
360,000
|
|
|
Roasting and distribution
|
York, PA
|
888,000
|
|
|
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
|
1,004,000
|
|
|
Corporate administrative
|
Amsterdam, Netherlands
|
97,000
|
|
|
Roasting and distribution
|
Samutprakarn, Thailand
|
81,000
|
|
|
Warehouse and distribution
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
|
High
|
|
Low
|
|
Cash Dividends
Declared |
||||||
Fiscal 2015:
|
|
|
|
|
|
||||||
Fourth Quarter
|
$
|
59.32
|
|
|
$
|
42.05
|
|
|
$
|
0.20
|
|
Third Quarter
|
54.75
|
|
|
46.28
|
|
|
0.16
|
|
|||
Second Quarter
|
49.60
|
|
|
39.28
|
|
|
0.16
|
|
|||
First Quarter
|
42.10
|
|
|
35.39
|
|
|
0.16
|
|
|||
Fiscal 2014:
|
|
|
|
|
|
||||||
Fourth Quarter
|
$
|
40.32
|
|
|
$
|
36.89
|
|
|
$
|
0.16
|
|
Third Quarter
|
39.18
|
|
|
33.97
|
|
|
0.13
|
|
|||
Second Quarter
|
39.42
|
|
|
34.34
|
|
|
0.13
|
|
|||
First Quarter
|
41.25
|
|
|
37.23
|
|
|
0.13
|
|
|
|
Total
Number of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs (2) |
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or Programs |
|||||
Period
(1)
|
|
|
|
|
|
|
|
|
|||||
June 29, 2015 — July 26, 2015
|
|
7,503,869
|
|
|
$
|
55.14
|
|
|
7,503,869
|
|
|
53,497,642
|
|
July 27, 2015 — August 23, 2015
|
|
200,780
|
|
|
52.03
|
|
|
200,780
|
|
|
53,296,862
|
|
|
August 24, 2015 — September 27, 2015
|
|
592,087
|
|
|
56.63
|
|
|
592,087
|
|
|
52,704,775
|
|
|
Total
|
|
8,296,736
|
|
|
$
|
55.17
|
|
|
8,296,736
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the fourth quarter of fiscal
2015
.
|
(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
50 million
shares, as adjusted to give effect to the two-for-one stock split discussed in
Note 1
, Summary of Significant Accounting Policies, included in Item 8 of Part II of this 10-K. On
July 23, 2015
, we publicly announced the authorization of up to an additional
50 million
shares. These authorizations have no expiration date.
|
|
Oct 3, 2010
|
|
Oct 2, 2011
|
|
Sep 30, 2012
|
|
Sep 29, 2013
|
|
Sep 28, 2014
|
|
Sep 27, 2015
|
||||||||||||
Starbucks Corporation
|
$
|
100.00
|
|
|
$
|
146.04
|
|
|
$
|
201.46
|
|
|
$
|
311.59
|
|
|
$
|
307.16
|
|
|
$
|
480.45
|
|
S&P 500
|
100.00
|
|
|
101.14
|
|
|
131.69
|
|
|
157.17
|
|
|
188.18
|
|
|
187.02
|
|
||||||
NASDAQ Composite
|
100.00
|
|
|
103.65
|
|
|
136.22
|
|
|
168.91
|
|
|
202.57
|
|
|
208.69
|
|
||||||
S&P Consumer Discretionary
|
100.00
|
|
|
106.17
|
|
|
145.07
|
|
|
191.26
|
|
|
213.77
|
|
|
241.95
|
|
Item 6.
|
Selected Financial Data
|
As of and for the Fiscal Year Ended
(1)
|
Sep 27,
2015
(52 Wks)
|
|
Sep 28,
2014 (52 Wks) |
|
Sep 29,
2013 (52 Wks) |
|
Sep 30,
2012 (52 Wks) |
|
Oct 2,
2011 (52 Wks) |
|||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Company-operated stores
|
$
|
15,197.3
|
|
|
$
|
12,977.9
|
|
|
$
|
11,793.2
|
|
|
$
|
10,534.5
|
|
|
$
|
9,632.4
|
|
|
Licensed stores
|
1,861.9
|
|
|
1,588.6
|
|
|
1,360.5
|
|
|
1,210.3
|
|
|
1,007.5
|
|
||||||
CPG, foodservice and other
|
2,103.5
|
|
|
1,881.3
|
|
|
1,713.1
|
|
|
1,532.0
|
|
|
1,060.5
|
|
||||||
Total net revenues
|
$
|
19,162.7
|
|
|
$
|
16,447.8
|
|
|
$
|
14,866.8
|
|
|
$
|
13,276.8
|
|
|
$
|
11,700.4
|
|
|
Operating income/(loss)
(2)
|
$
|
3,601.0
|
|
|
$
|
3,081.1
|
|
|
$
|
(325.4
|
)
|
|
$
|
1,997.4
|
|
|
$
|
1,728.5
|
|
|
Net earnings including noncontrolling interests
(2)
|
2,759.3
|
|
|
2,067.7
|
|
|
8.8
|
|
|
1,384.7
|
|
|
1,248.0
|
|
||||||
Net earnings attributable to noncontrolling interests
|
1.9
|
|
|
(0.4
|
)
|
|
0.5
|
|
|
0.9
|
|
|
2.3
|
|
||||||
Net earnings attributable to Starbucks
(2)
|
2,757.4
|
|
|
2,068.1
|
|
|
8.3
|
|
|
1,383.8
|
|
|
1,245.7
|
|
||||||
EPS — diluted
(2)
|
1.82
|
|
|
1.35
|
|
|
0.01
|
|
|
0.90
|
|
|
0.81
|
|
||||||
Cash dividends declared per share
|
0.680
|
|
|
0.550
|
|
|
0.445
|
|
|
0.360
|
|
|
0.280
|
|
||||||
Net cash provided by operating activities
|
3,749.1
|
|
|
607.8
|
|
|
2,908.3
|
|
|
1,750.3
|
|
|
1,612.4
|
|
||||||
Capital expenditures (additions to property, plant and equipment)
|
1,303.7
|
|
|
1,160.9
|
|
|
1,151.2
|
|
|
856.2
|
|
|
531.9
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets
|
$
|
12,446.1
|
|
|
$
|
10,752.9
|
|
|
$
|
11,516.7
|
|
|
$
|
8,219.2
|
|
|
$
|
7,360.4
|
|
|
Long-term debt (including current portion)
|
2,347.5
|
|
|
2,048.3
|
|
|
1,299.4
|
|
|
549.6
|
|
|
549.5
|
|
||||||
Shareholders’ equity
|
5,818.0
|
|
|
5,272.0
|
|
|
4,480.2
|
|
|
5,109.0
|
|
|
4,384.9
|
|
(1)
|
Our fiscal year ends on the Sunday closest to September 30.
|
(2)
|
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 $1.12 per share, respectively.
|
Fiscal Year Ended
|
Sep 27,
2015 (52 Wks) |
|
Sep 28,
2014 (52 Wks) |
|
Sep 29,
2013 (52 Wks) |
|
Sep 30,
2012 (52 Wks) |
|
Oct 2,
2011 (52 Wks) |
||||||
Percentage change in comparable store sales
(3)
|
|
|
|
|
|
|
|
|
|
||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
7
|
%
|
|
6
|
%
|
|
7
|
%
|
|
8
|
%
|
|
8
|
%
|
|
Change in transactions
|
3
|
%
|
|
2
|
%
|
|
5
|
%
|
|
6
|
%
|
|
5
|
%
|
|
Change in ticket
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
China/Asia Pacific
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
9
|
%
|
|
7
|
%
|
|
9
|
%
|
|
15
|
%
|
|
22
|
%
|
|
Change in transactions
|
8
|
%
|
|
6
|
%
|
|
7
|
%
|
|
11
|
%
|
|
20
|
%
|
|
Change in ticket
|
1
|
%
|
|
—
|
%
|
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
4
|
%
|
|
5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3
|
%
|
|
Change in transactions
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
—
|
%
|
|
3
|
%
|
|
Change in ticket
|
1
|
%
|
|
2
|
%
|
|
(2
|
)%
|
|
—
|
%
|
|
—
|
%
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
7
|
%
|
|
6
|
%
|
|
7
|
%
|
|
7
|
%
|
|
8
|
%
|
|
Change in transactions
|
3
|
%
|
|
3
|
%
|
|
5
|
%
|
|
6
|
%
|
|
6
|
%
|
|
Change in ticket
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
(3)
|
Includes only Starbucks
®
company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates.
|
As of and for the Fiscal Year Ended
|
Sep 27,
2015 (52 Wks) |
|
Sep 28,
2014 (52 Wks) |
|
Sep 29,
2013 (52 Wks) |
|
Sep 30,
2012 (52 Wks) |
|
Oct 2,
2011 (52 Wks) |
||||||
Net stores opened/(closed) and transferred during the year:
|
|
|
|
|
|
|
|
|
|
||||||
Americas
(4,5)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
276
|
|
|
317
|
|
|
276
|
|
|
228
|
|
|
32
|
|
|
Licensed stores
|
336
|
|
|
381
|
|
|
404
|
|
|
280
|
|
|
215
|
|
|
China/Asia Pacific
(6,7)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
1,320
|
|
|
250
|
|
|
239
|
|
|
152
|
|
|
74
|
|
|
Licensed stores
|
(482
|
)
|
|
492
|
|
|
349
|
|
|
296
|
|
|
192
|
|
|
EMEA
(8)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(80
|
)
|
|
(9
|
)
|
|
(29
|
)
|
|
10
|
|
|
25
|
|
|
Licensed stores
|
302
|
|
|
180
|
|
|
129
|
|
|
101
|
|
|
79
|
|
|
All Other Segments
(9)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
6
|
|
|
12
|
|
|
343
|
|
|
—
|
|
|
6
|
|
|
Licensed stores
(10)
|
(1
|
)
|
|
(24
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
(478
|
)
|
|
Total
|
1,677
|
|
|
1,599
|
|
|
1,701
|
|
|
1,063
|
|
|
145
|
|
|
Stores open at year end:
|
|
|
|
|
|
|
|
|
|
||||||
Americas
(4,5)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
8,671
|
|
|
8,395
|
|
|
8,078
|
|
|
7,802
|
|
|
7,574
|
|
|
Licensed stores
|
6,132
|
|
|
5,796
|
|
|
5,415
|
|
|
5,011
|
|
|
4,731
|
|
|
China/Asia Pacific
(6,7)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
2,452
|
|
|
1,132
|
|
|
882
|
|
|
643
|
|
|
491
|
|
|
Licensed stores
|
3,010
|
|
|
3,492
|
|
|
3,000
|
|
|
2,651
|
|
|
2,355
|
|
|
EMEA
(8)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
737
|
|
|
817
|
|
|
826
|
|
|
855
|
|
|
845
|
|
|
Licensed stores
|
1,625
|
|
|
1,323
|
|
|
1,143
|
|
|
1,014
|
|
|
913
|
|
|
All Other Segments
(9)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
375
|
|
|
369
|
|
|
357
|
|
|
14
|
|
|
14
|
|
|
Licensed stores
(10)
|
41
|
|
|
42
|
|
|
66
|
|
|
76
|
|
|
80
|
|
|
Total
|
23,043
|
|
|
21,366
|
|
|
19,767
|
|
|
18,066
|
|
|
17,003
|
|
(4)
|
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.
|
(5)
|
Americas store data includes the closure of 132 Target Canada licensed stores in the second quarter of fiscal 2015.
|
(6)
|
China/Asia Pacific store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2014.
|
(7)
|
China/Asia Pacific store data includes the transfer of 1,009 Japan stores from licensed stores to company-operated as a result of the acquisition of Starbucks Japan in the first quarter of fiscal 2015.
|
(8)
|
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.
|
(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
17%
to
$19.2 billion
in fiscal
2015
compared to
$16.4 billion
in fiscal
2014
.
|
•
|
Global comparable store sales grew 7% driven by a 4% increase in average ticket and a 3% increase in the number of transactions.
|
•
|
Consolidated operating income increased to
$3.6 billion
in fiscal
2015
compared to operating income of
$3.1 billion
in fiscal
2014
. Fiscal
2015
operating margin was
18.8%
compared to
18.7%
in fiscal
2014
. The operating margin expansion was primarily driven by sales leverage, partially offset by the impact of our ownership change in Starbucks Japan and increased salaries and benefits due to increased store partner (employee) investments.
|
•
|
Earnings per share ("EPS") for fiscal
2015
increased to
$1.82
, compared to EPS of
$1.35
in fiscal
2014
, primarily due to the gain resulting from the fair value adjustment of our preexisting equity interest in Starbucks Japan upon acquisition, which increased EPS by $0.26 per share in fiscal 2015. The remaining increase was primarily due to improved sales leverage and the incremental tax benefit related to domestic manufacturing deductions claimed for the current year and on U.S. corporate income tax returns for fiscal years 2010 through 2014.
|
•
|
Cash flows from operations were
$3.7 billion
in fiscal
2015
compared to
$607.8 million
in fiscal
2014
. The increase was primarily driven by lapping the prior year payment of $2.8 billion for the Kraft arbitration matter. The remaining change of $377 million was primarily due to strong earnings, partially offset by unfavorable changes in working capital accounts, mainly due to timing.
|
•
|
Capital expenditures were
$1.3 billion
in fiscal
2015
compared to
$1.2 billion
in fiscal
2014
.
|
•
|
We returned
$2.4 billion
to our shareholders in fiscal
2015
through share repurchases and dividends compared to $1.6 billion in fiscal 2014.
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
15,197.3
|
|
|
$
|
12,977.9
|
|
|
17.1
|
%
|
Licensed stores
|
1,861.9
|
|
|
1,588.6
|
|
|
17.2
|
|
||
CPG, foodservice and other
|
2,103.5
|
|
|
1,881.3
|
|
|
11.8
|
|
||
Total net revenues
|
$
|
19,162.7
|
|
|
$
|
16,447.8
|
|
|
16.5
|
%
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||||
|
|
|
|
|
% of Total
Net Revenues
|
||||||||
Cost of sales including occupancy costs
|
$
|
7,787.5
|
|
|
$
|
6,858.8
|
|
|
40.6
|
%
|
|
41.7
|
%
|
Store operating expenses
|
5,411.1
|
|
|
4,638.2
|
|
|
28.2
|
|
|
28.2
|
|
||
Other operating expenses
|
522.4
|
|
|
457.3
|
|
|
2.7
|
|
|
2.8
|
|
||
Depreciation and amortization expenses
|
893.9
|
|
|
709.6
|
|
|
4.7
|
|
|
4.3
|
|
||
General and administrative expenses
|
1,196.7
|
|
|
991.3
|
|
|
6.2
|
|
|
6.0
|
|
||
Litigation credit
|
—
|
|
|
(20.2
|
)
|
|
—
|
|
|
(0.1
|
)
|
||
Total operating expenses
|
15,811.6
|
|
|
13,635.0
|
|
|
82.5
|
|
|
82.9
|
|
||
Income from equity investees
|
249.9
|
|
|
268.3
|
|
|
1.3
|
|
|
1.6
|
|
||
Operating income
|
$
|
3,601.0
|
|
|
$
|
3,081.1
|
|
|
18.8
|
%
|
|
18.7
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
35.6
|
%
|
|
35.7
|
%
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||||
|
|
|
|
|
% of Total
Net Revenues
|
||||||||
Operating income
|
$
|
3,601.0
|
|
|
$
|
3,081.1
|
|
|
18.8
|
%
|
|
18.7
|
%
|
Gain resulting from acquisition of joint venture
|
390.6
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||
Loss on extinguishment of debt
|
(61.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
||
Interest income and other, net
|
43.0
|
|
|
142.7
|
|
|
0.2
|
|
|
0.9
|
|
||
Interest expense
|
(70.5
|
)
|
|
(64.1
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||
Earnings before income taxes
|
3,903.0
|
|
|
3,159.7
|
|
|
20.4
|
|
|
19.2
|
|
||
Income taxes
|
1,143.7
|
|
|
1,092.0
|
|
|
6.0
|
|
|
6.6
|
|
||
Net earnings including noncontrolling interests
|
2,759.3
|
|
|
2,067.7
|
|
|
14.4
|
|
|
12.6
|
|
||
Net earnings/(loss) attributable to noncontrolling interests
|
1.9
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
2,757.4
|
|
|
$
|
2,068.1
|
|
|
14.4
|
%
|
|
12.6
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
29.3
|
%
|
|
34.6
|
%
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
11,925.6
|
|
|
$
|
10,866.5
|
|
|
89.7
|
%
|
|
90.7
|
%
|
Licensed stores
|
1,334.4
|
|
|
1,074.9
|
|
|
10.0
|
|
|
9.0
|
|
||
Foodservice and other
|
33.4
|
|
|
39.1
|
|
|
0.3
|
|
|
0.3
|
|
||
Total net revenues
|
13,293.4
|
|
|
11,980.5
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
4,845.0
|
|
|
4,487.0
|
|
|
36.4
|
|
|
37.5
|
|
||
Store operating expenses
|
4,387.9
|
|
|
3,946.8
|
|
|
33.0
|
|
|
32.9
|
|
||
Other operating expenses
|
122.8
|
|
|
100.4
|
|
|
0.9
|
|
|
0.8
|
|
||
Depreciation and amortization expenses
|
522.3
|
|
|
469.5
|
|
|
3.9
|
|
|
3.9
|
|
||
General and administrative expenses
|
192.1
|
|
|
167.8
|
|
|
1.4
|
|
|
1.4
|
|
||
Total operating expenses
|
10,070.1
|
|
|
9,171.5
|
|
|
75.8
|
|
|
76.6
|
|
||
Operating income
|
$
|
3,223.3
|
|
|
$
|
2,809.0
|
|
|
24.2
|
%
|
|
23.4
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
36.8
|
%
|
|
36.3
|
%
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||||
|
|
|
|
|
As a % of China/Asia Pacific
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
2,127.3
|
|
|
$
|
859.4
|
|
|
88.8
|
%
|
|
76.1
|
%
|
Licensed stores
|
264.4
|
|
|
270.2
|
|
|
11.0
|
|
|
23.9
|
|
||
Foodservice and other
|
4.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||
Total net revenues
|
2,395.9
|
|
|
1,129.6
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
1,071.5
|
|
|
547.4
|
|
|
44.7
|
|
|
48.5
|
|
||
Store operating expenses
|
609.8
|
|
|
221.1
|
|
|
25.5
|
|
|
19.6
|
|
||
Other operating expenses
|
62.2
|
|
|
48.0
|
|
|
2.6
|
|
|
4.2
|
|
||
Depreciation and amortization expenses
|
150.7
|
|
|
46.1
|
|
|
6.3
|
|
|
4.1
|
|
||
General and administrative expenses
|
120.8
|
|
|
58.5
|
|
|
5.0
|
|
|
5.2
|
|
||
Total operating expenses
|
2,015.0
|
|
|
921.1
|
|
|
84.1
|
|
|
81.5
|
|
||
Income from equity investees
|
119.6
|
|
|
164.0
|
|
|
5.0
|
|
|
14.5
|
|
||
Operating income
|
$
|
500.5
|
|
|
$
|
372.5
|
|
|
20.9
|
%
|
|
33.0
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
28.7
|
%
|
|
25.7
|
%
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||||
|
|
|
|
|
As a % of EMEA
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
911.2
|
|
|
$
|
1,013.8
|
|
|
74.9
|
%
|
|
78.3
|
%
|
Licensed stores
|
257.2
|
|
|
238.4
|
|
|
21.1
|
|
|
18.4
|
|
||
Foodservice
|
48.3
|
|
|
42.6
|
|
|
4.0
|
|
|
3.3
|
|
||
Total net revenues
|
1,216.7
|
|
|
1,294.8
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
582.5
|
|
|
646.8
|
|
|
47.9
|
|
|
50.0
|
|
||
Store operating expenses
|
308.7
|
|
|
365.8
|
|
|
25.4
|
|
|
28.3
|
|
||
Other operating expenses
|
51.8
|
|
|
48.2
|
|
|
4.3
|
|
|
3.7
|
|
||
Depreciation and amortization expenses
|
52.0
|
|
|
59.4
|
|
|
4.3
|
|
|
4.6
|
|
||
General and administrative expenses
|
56.6
|
|
|
59.1
|
|
|
4.7
|
|
|
4.6
|
|
||
Total operating expenses
|
1,051.6
|
|
|
1,179.3
|
|
|
86.4
|
|
|
91.1
|
|
||
Income from equity investees
|
3.1
|
|
|
3.7
|
|
|
0.3
|
|
|
0.3
|
|
||
Operating income
|
$
|
168.2
|
|
|
$
|
119.2
|
|
|
13.8
|
%
|
|
9.2
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
33.9
|
%
|
|
36.1
|
%
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
CPG
|
$
|
1,329.0
|
|
|
$
|
1,178.8
|
|
|
76.8
|
%
|
|
76.2
|
%
|
Foodservice
|
401.9
|
|
|
367.2
|
|
|
23.2
|
|
|
23.8
|
|
||
Total net revenues
|
1,730.9
|
|
|
1,546.0
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
974.8
|
|
|
882.4
|
|
|
56.3
|
|
|
57.1
|
|
||
Other operating expenses
|
210.5
|
|
|
187.0
|
|
|
12.2
|
|
|
12.1
|
|
||
Depreciation and amortization expenses
|
2.7
|
|
|
1.8
|
|
|
0.2
|
|
|
0.1
|
|
||
General and administrative expenses
|
16.2
|
|
|
18.2
|
|
|
0.9
|
|
|
1.2
|
|
||
Total operating expenses
|
1,204.2
|
|
|
1,089.4
|
|
|
69.6
|
|
|
70.5
|
|
||
Income from equity investees
|
127.2
|
|
|
100.6
|
|
|
7.3
|
|
|
6.5
|
|
||
Operating income
|
$
|
653.9
|
|
|
$
|
557.2
|
|
|
37.8
|
%
|
|
36.0
|
%
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
% Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
233.2
|
|
|
$
|
238.2
|
|
|
(2.1
|
)%
|
Licensed stores
|
5.9
|
|
|
5.1
|
|
|
15.7
|
|
||
CPG, foodservice and other
|
286.7
|
|
|
253.6
|
|
|
13.1
|
|
||
Total net revenues
|
525.8
|
|
|
496.9
|
|
|
5.8
|
|
||
Cost of sales including occupancy costs
|
316.5
|
|
|
287.2
|
|
|
10.2
|
|
||
Store operating expenses
|
104.7
|
|
|
104.5
|
|
|
0.2
|
|
||
Other operating expenses
|
76.5
|
|
|
74.6
|
|
|
2.5
|
|
||
Depreciation and amortization expenses
|
16.3
|
|
|
15.2
|
|
|
7.2
|
|
||
General and administrative expenses
|
36.6
|
|
|
42.2
|
|
|
(13.3
|
)
|
||
Total operating expenses
|
550.6
|
|
|
523.7
|
|
|
5.1
|
|
||
Operating loss
|
$
|
(24.8
|
)
|
|
$
|
(26.8
|
)
|
|
(7.5
|
)%
|
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/(credit)
|
(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/(loss) 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
|
|
||
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 CAP 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 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
|
|
||
Foodservice
|
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 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
|
)%
|
|
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)
|
$
|
5,669.5
|
|
|
$
|
1,032.4
|
|
|
$
|
1,632.3
|
|
|
$
|
1,172.9
|
|
|
$
|
1,831.9
|
|
Financing lease obligations
(3)
|
47.1
|
|
|
3.2
|
|
|
6.4
|
|
|
6.4
|
|
|
31.1
|
|
|||||
Debt obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments
|
2,350.0
|
|
|
—
|
|
|
400.0
|
|
|
350.0
|
|
|
1,600.0
|
|
|||||
Interest payments
(4)
|
821.2
|
|
|
67.9
|
|
|
130.6
|
|
|
118.4
|
|
|
504.3
|
|
|||||
Purchase obligations
(5)
|
1,257.1
|
|
|
884.0
|
|
|
284.7
|
|
|
76.0
|
|
|
12.4
|
|
|||||
Other obligations
(6)
|
122.7
|
|
|
19.2
|
|
|
28.3
|
|
|
13.0
|
|
|
62.2
|
|
|||||
Total
|
$
|
10,267.6
|
|
|
$
|
2,006.7
|
|
|
$
|
2,482.3
|
|
|
$
|
1,736.7
|
|
|
$
|
4,041.9
|
|
(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 27, 2015
, we had
$159.3 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 consist of build-to-suit lease arrangements primarily related to the Starbucks Japan acquisition, which are described further in
Note 2
, Acquisitions and Divestitures, to the consolidated financial statements included in Item 8 of Part II of this 10-K.
|
(4)
|
Amounts exclude any gain or loss upon settlement of related interest rate swap agreements, which are described further in
Note 3
, Derivative Financial Instruments, to the consolidated financial statements included in Item 8 of Part II of this 10-K.
|
(5)
|
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
86%
of total purchase obligations.
|
(6)
|
Other obligations include other long-term liabilities primarily consisting of asset retirement 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
|
$
|
6
|
|
|
$
|
(6
|
)
|
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
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
|
$
|
10
|
|
|
$
|
(10
|
)
|
|
$
|
120
|
|
|
$
|
(120
|
)
|
|
|
|
|
|
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
|
|
|
$
|
(5
|
)
|
|
$
|
5
|
|
2018 notes
|
2.000
|
%
|
|
$
|
354
|
|
|
$
|
(11
|
)
|
|
$
|
11
|
|
2022 notes
|
2.700
|
%
|
|
$
|
503
|
|
|
$
|
(31
|
)
|
|
$
|
31
|
|
2023 notes
|
3.850
|
%
|
|
$
|
790
|
|
|
$
|
(54
|
)
|
|
$
|
54
|
|
2045 notes
|
4.300
|
%
|
|
$
|
355
|
|
|
$
|
(61
|
)
|
|
$
|
61
|
|
Item 8.
|
Financial Statements and Supplementary Data
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
Net revenues:
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
15,197.3
|
|
|
$
|
12,977.9
|
|
|
$
|
11,793.2
|
|
Licensed stores
|
1,861.9
|
|
|
1,588.6
|
|
|
1,360.5
|
|
|||
CPG, foodservice and other
|
2,103.5
|
|
|
1,881.3
|
|
|
1,713.1
|
|
|||
Total net revenues
|
19,162.7
|
|
|
16,447.8
|
|
|
14,866.8
|
|
|||
Cost of sales including occupancy costs
|
7,787.5
|
|
|
6,858.8
|
|
|
6,382.3
|
|
|||
Store operating expenses
|
5,411.1
|
|
|
4,638.2
|
|
|
4,286.1
|
|
|||
Other operating expenses
|
522.4
|
|
|
457.3
|
|
|
431.8
|
|
|||
Depreciation and amortization expenses
|
893.9
|
|
|
709.6
|
|
|
621.4
|
|
|||
General and administrative expenses
|
1,196.7
|
|
|
991.3
|
|
|
937.9
|
|
|||
Litigation charge/(credit)
|
—
|
|
|
(20.2
|
)
|
|
2,784.1
|
|
|||
Total operating expenses
|
15,811.6
|
|
|
13,635.0
|
|
|
15,443.6
|
|
|||
Income from equity investees
|
249.9
|
|
|
268.3
|
|
|
251.4
|
|
|||
Operating income/(loss)
|
3,601.0
|
|
|
3,081.1
|
|
|
(325.4
|
)
|
|||
Gain resulting from acquisition of joint venture
|
390.6
|
|
|
—
|
|
|
—
|
|
|||
Loss on extinguishment of debt
|
(61.1
|
)
|
|
—
|
|
|
—
|
|
|||
Interest income and other, net
|
43.0
|
|
|
142.7
|
|
|
123.6
|
|
|||
Interest expense
|
(70.5
|
)
|
|
(64.1
|
)
|
|
(28.1
|
)
|
|||
Earnings/(loss) before income taxes
|
3,903.0
|
|
|
3,159.7
|
|
|
(229.9
|
)
|
|||
Income tax expense/(benefit)
|
1,143.7
|
|
|
1,092.0
|
|
|
(238.7
|
)
|
|||
Net earnings including noncontrolling interests
|
2,759.3
|
|
|
2,067.7
|
|
|
8.8
|
|
|||
Net earnings/(loss) attributable to noncontrolling interests
|
1.9
|
|
|
(0.4
|
)
|
|
0.5
|
|
|||
Net earnings attributable to Starbucks
|
$
|
2,757.4
|
|
|
$
|
2,068.1
|
|
|
$
|
8.3
|
|
Earnings per share — basic
|
$
|
1.84
|
|
|
$
|
1.37
|
|
|
$
|
0.01
|
|
Earnings per share — diluted
|
$
|
1.82
|
|
|
$
|
1.35
|
|
|
$
|
0.01
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
1,495.9
|
|
|
1,506.3
|
|
|
1,498.5
|
|
|||
Diluted
|
1,513.4
|
|
|
1,526.3
|
|
|
1,524.5
|
|
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
Net earnings including noncontrolling interests
|
$
|
2,759.3
|
|
|
$
|
2,067.7
|
|
|
$
|
8.8
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
1.4
|
|
|
1.6
|
|
|
(0.6
|
)
|
|||
Tax (expense)/benefit
|
(0.5
|
)
|
|
(0.6
|
)
|
|
0.2
|
|
|||
Unrealized gains/(losses) on cash flow hedging instruments
|
47.6
|
|
|
24.1
|
|
|
47.1
|
|
|||
Tax (expense)/benefit
|
(16.8
|
)
|
|
(7.8
|
)
|
|
(24.6
|
)
|
|||
Unrealized gains/(losses) on net investment hedging instruments
|
4.3
|
|
|
25.5
|
|
|
32.8
|
|
|||
Tax (expense)/benefit
|
(1.6
|
)
|
|
(9.4
|
)
|
|
(12.1
|
)
|
|||
Translation adjustment
|
(222.7
|
)
|
|
(75.8
|
)
|
|
(41.6
|
)
|
|||
Tax (expense)/benefit
|
6.0
|
|
|
(1.6
|
)
|
|
0.3
|
|
|||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment
|
(65.9
|
)
|
|
(1.5
|
)
|
|
46.3
|
|
|||
Tax expense/(benefit)
|
23.5
|
|
|
3.8
|
|
|
(3.5
|
)
|
|||
Other comprehensive income/(loss)
|
(224.7
|
)
|
|
(41.7
|
)
|
|
44.3
|
|
|||
Comprehensive income including noncontrolling interests
|
2,534.6
|
|
|
2,026.0
|
|
|
53.1
|
|
|||
Comprehensive income/(loss) attributable to noncontrolling interests
|
(29.2
|
)
|
|
(0.4
|
)
|
|
0.5
|
|
|||
Comprehensive income attributable to Starbucks
|
$
|
2,563.8
|
|
|
$
|
2,026.4
|
|
|
$
|
52.6
|
|
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,530.1
|
|
|
$
|
1,708.4
|
|
Short-term investments
|
81.3
|
|
|
135.4
|
|
||
Accounts receivable, net
|
719.0
|
|
|
631.0
|
|
||
Inventories
|
1,306.4
|
|
|
1,090.9
|
|
||
Prepaid expenses and other current assets
|
334.2
|
|
|
285.6
|
|
||
Deferred income taxes, net
|
381.7
|
|
|
317.4
|
|
||
Total current assets
|
4,352.7
|
|
|
4,168.7
|
|
||
Long-term investments
|
312.5
|
|
|
318.4
|
|
||
Equity and cost investments
|
352.0
|
|
|
514.9
|
|
||
Property, plant and equipment, net
|
4,088.3
|
|
|
3,519.0
|
|
||
Deferred income taxes, net
|
828.9
|
|
|
903.3
|
|
||
Other long-term assets
|
415.9
|
|
|
198.9
|
|
||
Other intangible assets
|
520.4
|
|
|
273.5
|
|
||
Goodwill
|
1,575.4
|
|
|
856.2
|
|
||
TOTAL ASSETS
|
$
|
12,446.1
|
|
|
$
|
10,752.9
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
684.2
|
|
|
$
|
533.7
|
|
Accrued liabilities
|
1,760.7
|
|
|
1,514.4
|
|
||
Insurance reserves
|
224.8
|
|
|
196.1
|
|
||
Stored value card liability
|
983.8
|
|
|
794.5
|
|
||
Total current liabilities
|
3,653.5
|
|
|
3,038.7
|
|
||
Long-term debt
|
2,347.5
|
|
|
2,048.3
|
|
||
Other long-term liabilities
|
625.3
|
|
|
392.2
|
|
||
Total liabilities
|
6,626.3
|
|
|
5,479.2
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,485.1 and 1,499.1 shares, respectively
|
1.5
|
|
|
0.7
|
|
||
Additional paid-in capital
|
41.1
|
|
|
39.4
|
|
||
Retained earnings
|
5,974.8
|
|
|
5,206.6
|
|
||
Accumulated other comprehensive income/(loss)
|
(199.4
|
)
|
|
25.3
|
|
||
Total shareholders’ equity
|
5,818.0
|
|
|
5,272.0
|
|
||
Noncontrolling interest
|
1.8
|
|
|
1.7
|
|
||
Total equity
|
5,819.8
|
|
|
5,273.7
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
12,446.1
|
|
|
$
|
10,752.9
|
|
Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net earnings including noncontrolling interests
|
$
|
2,759.3
|
|
|
$
|
2,067.7
|
|
|
$
|
8.8
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
933.8
|
|
|
748.4
|
|
|
655.6
|
|
|||
Litigation charge
|
—
|
|
|
—
|
|
|
2,784.1
|
|
|||
Deferred income taxes, net
|
21.2
|
|
|
10.2
|
|
|
(1,045.9
|
)
|
|||
Income earned from equity method investees
|
(190.2
|
)
|
|
(182.7
|
)
|
|
(171.8
|
)
|
|||
Distributions received from equity method investees
|
148.2
|
|
|
139.2
|
|
|
115.6
|
|
|||
Gain resulting from acquisition/sale of equity in joint ventures and certain retail operations
|
(394.3
|
)
|
|
(70.2
|
)
|
|
(80.1
|
)
|
|||
Loss on extinguishment of debt
|
61.1
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
209.8
|
|
|
183.2
|
|
|
142.3
|
|
|||
Excess tax benefit on share-based awards
|
(132.4
|
)
|
|
(114.4
|
)
|
|
(258.1
|
)
|
|||
Other
|
53.8
|
|
|
36.2
|
|
|
23.0
|
|
|||
Cash provided/(used) by changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(82.8
|
)
|
|
(79.7
|
)
|
|
(68.3
|
)
|
|||
Inventories
|
(207.9
|
)
|
|
14.3
|
|
|
152.5
|
|
|||
Accounts payable
|
137.7
|
|
|
60.4
|
|
|
88.7
|
|
|||
Accrued litigation charge
|
—
|
|
|
(2,763.9
|
)
|
|
—
|
|
|||
Income taxes payable, net
|
87.6
|
|
|
309.8
|
|
|
298.4
|
|
|||
Accrued liabilities and insurance reserves
|
124.4
|
|
|
103.9
|
|
|
47.3
|
|
|||
Stored value card liability
|
170.3
|
|
|
140.8
|
|
|
139.9
|
|
|||
Prepaid expenses, other current assets and other long-term assets
|
49.5
|
|
|
4.6
|
|
|
76.3
|
|
|||
Net cash provided by operating activities
|
3,749.1
|
|
|
607.8
|
|
|
2,908.3
|
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchases of investments
|
(567.4
|
)
|
|
(1,652.5
|
)
|
|
(785.9
|
)
|
|||
Sales of investments
|
600.6
|
|
|
1,454.8
|
|
|
60.2
|
|
|||
Maturities and calls of investments
|
18.8
|
|
|
456.1
|
|
|
980.0
|
|
|||
Acquisitions, net of cash acquired
|
(284.3
|
)
|
|
—
|
|
|
(610.4
|
)
|
|||
Additions to property, plant and equipment
|
(1,303.7
|
)
|
|
(1,160.9
|
)
|
|
(1,151.2
|
)
|
|||
Proceeds from sale of equity in joint ventures and certain retail operations
|
8.9
|
|
|
103.9
|
|
|
108.0
|
|
|||
Other
|
6.8
|
|
|
(19.1
|
)
|
|
(11.9
|
)
|
|||
Net cash used by investing activities
|
(1,520.3
|
)
|
|
(817.7
|
)
|
|
(1,411.2
|
)
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
848.5
|
|
|
748.5
|
|
|
749.7
|
|
|||
Repayments of long-term debt
|
(610.1
|
)
|
|
—
|
|
|
(35.2
|
)
|
|||
Cash used for purchase of non-controlling interest
|
(360.8
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of common stock
|
191.8
|
|
|
139.7
|
|
|
247.2
|
|
|||
Excess tax benefit on share-based awards
|
132.4
|
|
|
114.4
|
|
|
258.1
|
|
|||
Cash dividends paid
|
(928.6
|
)
|
|
(783.1
|
)
|
|
(628.9
|
)
|
|||
Repurchase of common stock
|
(1,436.1
|
)
|
|
(758.6
|
)
|
|
(588.1
|
)
|
|||
Minimum tax withholdings on share-based awards
|
(75.5
|
)
|
|
(77.3
|
)
|
|
(121.4
|
)
|
|||
Other
|
(18.1
|
)
|
|
(6.9
|
)
|
|
10.4
|
|
|||
Net cash used by financing activities
|
(2,256.5
|
)
|
|
(623.3
|
)
|
|
(108.2
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(150.6
|
)
|
|
(34.1
|
)
|
|
(1.8
|
)
|
|||
Net (decrease)/increase in cash and cash equivalents
|
(178.3
|
)
|
|
(867.3
|
)
|
|
1,387.1
|
|
|||
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
||||||
Beginning of period
|
1,708.4
|
|
|
2,575.7
|
|
|
1,188.6
|
|
|||
End of period
|
$
|
1,530.1
|
|
|
$
|
1,708.4
|
|
|
$
|
2,575.7
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest, net of capitalized interest
|
$
|
69.5
|
|
|
$
|
56.2
|
|
|
$
|
34.4
|
|
Income taxes, net of refunds
|
$
|
1,072.2
|
|
|
$
|
766.3
|
|
|
$
|
539.1
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Shareholders’
Equity |
|
Noncontrolling
Interest |
|
Total
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
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, $0.445 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, $0.550 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
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
2,757.4
|
|
|
—
|
|
|
2,757.4
|
|
|
1.9
|
|
|
2,759.3
|
|
|||||||
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(193.6
|
)
|
|
(193.6
|
)
|
|
(31.1
|
)
|
|
(224.7
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
211.7
|
|
|
—
|
|
|
—
|
|
|
211.7
|
|
|
—
|
|
|
211.7
|
|
|||||||
Exercise of stock options/vesting of RSUs, including tax benefit of $131.3
|
14.6
|
|
|
—
|
|
|
224.4
|
|
|
—
|
|
|
—
|
|
|
224.4
|
|
|
—
|
|
|
224.4
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.6
|
|
|
—
|
|
|
23.5
|
|
|
—
|
|
|
—
|
|
|
23.5
|
|
|
—
|
|
|
23.5
|
|
|||||||
Repurchase of common stock
|
(29.0
|
)
|
|
—
|
|
|
(459.6
|
)
|
|
(972.2
|
)
|
|
—
|
|
|
(1,431.8
|
)
|
|
—
|
|
|
(1,431.8
|
)
|
|||||||
Cash dividends declared, $0.680 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,016.2
|
)
|
|
—
|
|
|
(1,016.2
|
)
|
|
—
|
|
|
(1,016.2
|
)
|
|||||||
Two-for-one stock split
|
749.4
|
|
|
0.8
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Noncontrolling interest resulting from acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411.1
|
|
|
411.1
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
(31.1
|
)
|
|
(29.4
|
)
|
|
(381.7
|
)
|
|
(411.1
|
)
|
|||||||
Balance, September 27, 2015
|
1,485.1
|
|
|
$
|
1.5
|
|
|
$
|
41.1
|
|
|
$
|
5,974.8
|
|
|
$
|
(199.4
|
)
|
|
$
|
5,818.0
|
|
|
$
|
1.8
|
|
|
$
|
5,819.8
|
|
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
|
Consideration:
|
|
|
||
Cash paid for Sazaby's 39.5% equity interest
|
|
$
|
508.7
|
|
Fair value of our preexisting 39.5% equity interest
|
|
577.0
|
|
|
Total consideration
|
|
$
|
1,085.7
|
|
|
|
|
||
Fair value of assets acquired and liabilities assumed:
|
|
|
||
Cash and cash equivalents
|
|
$
|
224.4
|
|
Accounts receivable, net
|
|
37.4
|
|
|
Inventories
|
|
26.4
|
|
|
Prepaid expenses and other current assets
|
|
35.7
|
|
|
Deferred income taxes, net (current)
|
|
23.4
|
|
|
Property, plant and equipment
|
|
282.9
|
|
|
Other long-term assets
|
|
141.4
|
|
|
Other intangible assets
|
|
323.0
|
|
|
Goodwill
|
|
815.6
|
|
|
Total assets acquired
|
|
1,910.2
|
|
|
Accounts payable
|
|
(54.5
|
)
|
|
Accrued liabilities
|
|
(115.9
|
)
|
|
Stored value card liability
|
|
(36.5
|
)
|
|
Deferred income taxes (noncurrent)
|
|
(90.7
|
)
|
|
Other long-term liabilities
|
|
(115.8
|
)
|
|
Total liabilities assumed
|
|
(413.4
|
)
|
|
Noncontrolling interest
|
|
(411.1
|
)
|
|
Total consideration
|
|
$
|
1,085.7
|
|
|
Sep 27, 2015
|
||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
Reacquired rights
|
$
|
273.2
|
|
|
$
|
(39.0
|
)
|
|
$
|
234.2
|
|
Licensing agreements
|
13.4
|
|
|
(1.1
|
)
|
|
12.3
|
|
|||
Customer loyalty program
|
2.7
|
|
|
(0.6
|
)
|
|
2.1
|
|
|||
Total acquired finite-lived intangible assets
|
$
|
289.3
|
|
|
$
|
(40.7
|
)
|
|
$
|
248.6
|
|
|
Operating Leases
|
|
Lease Financing Arrangements
|
||||
Year 1
|
$
|
83.7
|
|
|
$
|
2.8
|
|
Year 2
|
66.5
|
|
|
2.8
|
|
||
Year 3
|
49.0
|
|
|
2.8
|
|
||
Year 4
|
37.5
|
|
|
2.8
|
|
||
Year 5
|
30.3
|
|
|
2.7
|
|
||
Thereafter
|
129.4
|
|
|
24.8
|
|
||
Total minimum lease payments
|
$
|
396.4
|
|
|
$
|
38.7
|
|
|
|
Pro Forma (unaudited)
|
||||||
|
|
Year Ended
|
||||||
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Revenue
|
|
$
|
19,254.5
|
|
|
$
|
17,646.4
|
|
Net earnings attributable to Starbucks
(1)
|
|
2,380.9
|
|
|
2,449.9
|
|
(1)
|
The pro forma net earnings attributable to Starbucks for fiscal
2014
includes the acquisition-related gain of
$390.6 million
, and transaction and integration costs of
$13.6 million
for the
year
ended
September 28, 2014
.
|
|
Year Ended
|
||||||
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Net earnings attributable to Starbucks
|
$
|
2,757.4
|
|
|
$
|
2,068.1
|
|
Transfers (to)/from the noncontrolling interest:
|
|
|
|
||||
Increase/(decrease) in additional paid-in capital for purchase of interest in subsidiary
|
1.7
|
|
|
—
|
|
||
Change from net earnings attributable to Starbucks and transfers (to)/from noncontrolling interest
|
$
|
2,759.1
|
|
|
$
|
2,068.1
|
|
|
|
Fair Value at
Dec 31, 2012
|
||
Cash and cash equivalents
|
|
$
|
47.0
|
|
Inventories
|
|
21.3
|
|
|
Property, plant and equipment
|
|
59.7
|
|
|
Other intangible assets
|
|
120.8
|
|
|
Goodwill
|
|
467.5
|
|
|
Other current and noncurrent assets
|
|
19.8
|
|
|
Current liabilities
|
|
(36.0
|
)
|
|
Deferred income taxes (noncurrent)
|
|
(54.3
|
)
|
|
Long-term debt
|
|
(35.2
|
)
|
|
Other long-term liabilities
|
|
(7.0
|
)
|
|
Total consideration
|
|
$
|
603.6
|
|
|
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 27,
2015 |
|
Sep 28,
2014 |
|
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rates
|
$
|
30.1
|
|
|
$
|
36.4
|
|
|
$
|
3.5
|
|
|
4
|
Cross-currency swaps
|
(27.8
|
)
|
|
—
|
|
|
—
|
|
|
111
|
|||
Foreign currency - other
|
29.0
|
|
|
10.6
|
|
|
19.2
|
|
|
35
|
|||
Coffee
|
(5.7
|
)
|
|
(0.7
|
)
|
|
(2.5
|
)
|
|
12
|
|||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
1.3
|
|
|
3.2
|
|
|
—
|
|
|
0
|
|
Year Ended
|
||||||||||||||
|
Gains/(Losses) Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from AOCI to Earnings
|
||||||||||||
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
$
|
(6.8
|
)
|
|
$
|
0.5
|
|
|
$
|
3.2
|
|
|
$
|
5.0
|
|
Cross-currency swaps
|
11.4
|
|
|
—
|
|
|
46.2
|
|
|
—
|
|
||||
Foreign currency - other
|
52.0
|
|
|
24.0
|
|
|
26.1
|
|
|
8.0
|
|
||||
Coffee
|
(9.0
|
)
|
|
(0.4
|
)
|
|
(3.5
|
)
|
|
(13.1
|
)
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
4.3
|
|
|
25.5
|
|
|
7.2
|
|
|
—
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Interest rates
|
$
|
125
|
|
|
$
|
—
|
|
Cross-currency swaps
|
717
|
|
|
—
|
|
||
Foreign currency - other
|
577
|
|
|
542
|
|
||
Coffee
|
38
|
|
|
45
|
|
||
Dairy
|
43
|
|
|
24
|
|
||
Diesel fuel
|
14
|
|
|
17
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Sep 27, 2015 |
|
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
|
$
|
1,530.1
|
|
|
$
|
1,530.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
10.2
|
|
|
—
|
|
|
10.2
|
|
|
—
|
|
||||
Foreign government obligations
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
State and local government obligations
|
3.3
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
||||
Total available-for-sale securities
|
15.5
|
|
|
—
|
|
|
15.5
|
|
|
—
|
|
||||
Trading securities
|
65.8
|
|
|
65.8
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
81.3
|
|
|
65.8
|
|
|
15.5
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
50.8
|
|
|
—
|
|
|
50.8
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
8.6
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
||||
Corporate debt securities
|
121.8
|
|
|
—
|
|
|
121.8
|
|
|
—
|
|
||||
Auction rate securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Foreign government obligations
|
18.5
|
|
|
—
|
|
|
18.5
|
|
|
—
|
|
||||
U.S. government treasury securities
|
104.8
|
|
|
104.8
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
9.7
|
|
|
—
|
|
|
9.7
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
43.2
|
|
|
—
|
|
|
43.2
|
|
|
—
|
|
||||
Total long-term investments
|
312.5
|
|
|
104.8
|
|
|
201.8
|
|
|
5.9
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
54.7
|
|
|
—
|
|
|
54.7
|
|
|
—
|
|
||||
Total assets
|
$
|
2,029.4
|
|
|
$
|
1,700.7
|
|
|
$
|
322.8
|
|
|
$
|
5.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
19.2
|
|
|
$
|
3.6
|
|
|
$
|
15.6
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
14.5
|
|
|
—
|
|
|
14.5
|
|
|
—
|
|
||||
Total liabilities
|
$
|
33.7
|
|
|
$
|
3.6
|
|
|
$
|
30.1
|
|
|
$
|
—
|
|
|
|
|
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
|
|
|
—
|
|
||||
U.S. 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
|
|
|
—
|
|
||||
U.S. government treasury securities
|
94.8
|
|
|
94.8
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
45.9
|
|
|
—
|
|
|
45.9
|
|
|
—
|
|
||||
Total long-term investments
|
318.4
|
|
|
94.8
|
|
|
209.8
|
|
|
13.8
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
18.0
|
|
|
—
|
|
|
18.0
|
|
|
—
|
|
||||
Total assets
|
$
|
2,208.9
|
|
|
$
|
1,887.2
|
|
|
$
|
307.9
|
|
|
$
|
13.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
2.4
|
|
|
$
|
0.4
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Coffee:
|
|
|
|
||||
Unroasted
|
$
|
529.4
|
|
|
$
|
432.3
|
|
Roasted
|
279.7
|
|
|
238.9
|
|
||
Other merchandise held for sale
|
318.3
|
|
|
265.7
|
|
||
Packaging and other supplies
|
179.0
|
|
|
154.0
|
|
||
Total
|
$
|
1,306.4
|
|
|
$
|
1,090.9
|
|
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||
Equity method investments
|
$
|
306.4
|
|
|
$
|
469.3
|
|
Cost method investments
|
45.6
|
|
|
45.6
|
|
||
Total
|
$
|
352.0
|
|
|
$
|
514.9
|
|
Financial Position as of
|
Sep 27,
2015 |
|
Sep 28,
2014 |
||||
Current assets
|
$
|
402.8
|
|
|
$
|
701.3
|
|
Noncurrent assets
|
578.8
|
|
|
873.9
|
|
||
Current liabilities
|
490.0
|
|
|
615.6
|
|
||
Noncurrent liabilities
|
38.7
|
|
|
79.1
|
|
Results of Operations for Fiscal Year Ended
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
Net revenues
|
$
|
2,688.0
|
|
|
$
|
3,461.3
|
|
|
$
|
3,018.7
|
|
Operating income
|
426.4
|
|
|
467.7
|
|
|
434.8
|
|
|||
Net earnings
|
392.1
|
|
|
382.6
|
|
|
358.0
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Land
|
$
|
46.6
|
|
|
$
|
46.7
|
|
Buildings
|
411.5
|
|
|
278.1
|
|
||
Leasehold improvements
|
5,409.6
|
|
|
4,858.4
|
|
||
Store equipment
|
1,707.5
|
|
|
1,493.3
|
|
||
Roasting equipment
|
542.4
|
|
|
410.9
|
|
||
Furniture, fixtures and other
|
1,281.7
|
|
|
1,078.1
|
|
||
Work in progress
|
242.5
|
|
|
415.6
|
|
||
Property, plant and equipment, gross
|
9,641.8
|
|
|
8,581.1
|
|
||
Accumulated depreciation
|
(5,553.5
|
)
|
|
(5,062.1
|
)
|
||
Property, plant and equipment, net
|
$
|
4,088.3
|
|
|
$
|
3,519.0
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Accrued compensation and related costs
|
$
|
522.3
|
|
|
$
|
437.9
|
|
Accrued occupancy costs
|
137.2
|
|
|
119.8
|
|
||
Accrued taxes
|
259.0
|
|
|
272.0
|
|
||
Accrued dividends payable
|
297.0
|
|
|
239.8
|
|
||
Other
|
545.2
|
|
|
444.9
|
|
||
Total accrued liabilities
|
$
|
1,760.7
|
|
|
$
|
1,514.4
|
|
(in millions)
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Trade names, trademarks and patents
|
$
|
202.8
|
|
|
$
|
197.5
|
|
Other indefinite-lived intangible assets
|
15.1
|
|
|
15.1
|
|
||
Total indefinite-lived intangible assets
|
$
|
217.9
|
|
|
$
|
212.6
|
|
|
Americas
|
|
China/Asia Pacific
|
|
EMEA
|
|
Channel
Development |
|
All Other Segments
|
|
Total
|
||||||||||||
Balance at September 29, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill prior to impairment
|
$
|
230.2
|
|
|
$
|
75.1
|
|
|
$
|
62.2
|
|
|
$
|
23.8
|
|
|
$
|
480.2
|
|
|
$
|
871.5
|
|
Accumulated impairment charges
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.6
|
)
|
||||||
Goodwill
|
$
|
221.6
|
|
|
$
|
75.1
|
|
|
$
|
62.2
|
|
|
$
|
23.8
|
|
|
$
|
480.2
|
|
|
$
|
862.9
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
||||||
Other
(1)
|
(2.6
|
)
|
|
(0.2
|
)
|
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
||||||
Balance at September 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill prior to impairment
|
$
|
227.6
|
|
|
$
|
74.9
|
|
|
$
|
59.1
|
|
|
$
|
23.8
|
|
|
$
|
480.2
|
|
|
$
|
865.6
|
|
Accumulated impairment charges
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
(9.4
|
)
|
||||||
Goodwill
|
$
|
219.0
|
|
|
$
|
74.9
|
|
|
$
|
59.1
|
|
|
$
|
23.8
|
|
|
$
|
479.4
|
|
|
$
|
856.2
|
|
Acquisition/(divestiture)
|
(2.5
|
)
|
|
815.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
813.1
|
|
||||||
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
||||||
Other
(1)
|
(5.3
|
)
|
|
(86.4
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
(93.4
|
)
|
||||||
Balance at September 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill prior to impairment
|
$
|
219.8
|
|
|
$
|
804.1
|
|
|
$
|
57.4
|
|
|
$
|
23.8
|
|
|
$
|
480.2
|
|
|
$
|
1,585.3
|
|
Accumulated impairment charges
|
(8.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(9.9
|
)
|
||||||
Goodwill
|
$
|
211.2
|
|
|
$
|
804.1
|
|
|
$
|
57.4
|
|
|
$
|
23.8
|
|
|
$
|
478.9
|
|
|
$
|
1,575.4
|
|
(1)
|
Other is primarily comprised of changes in the goodwill balance as a result of foreign currency translation.
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||||||||||||||||||
(in millions)
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Acquired and reacquired rights
|
$
|
308.6
|
|
|
$
|
(52.5
|
)
|
|
$
|
256.1
|
|
|
$
|
36.8
|
|
|
$
|
(10.1
|
)
|
|
$
|
26.7
|
|
Acquired trade secrets and processes
|
27.6
|
|
|
(8.2
|
)
|
|
19.4
|
|
|
27.6
|
|
|
(5.4
|
)
|
|
22.2
|
|
||||||
Licensing agreements
|
13.4
|
|
|
(1.1
|
)
|
|
12.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Trade names, trademarks and patents
|
24.5
|
|
|
(13.0
|
)
|
|
11.5
|
|
|
21.6
|
|
|
(11.6
|
)
|
|
10.0
|
|
||||||
Other finite-lived intangible assets
|
6.5
|
|
|
(3.3
|
)
|
|
3.2
|
|
|
3.8
|
|
|
(1.8
|
)
|
|
2.0
|
|
||||||
Total finite-lived intangible assets
|
$
|
380.6
|
|
|
$
|
(78.1
|
)
|
|
$
|
302.5
|
|
|
$
|
89.8
|
|
|
$
|
(28.9
|
)
|
|
$
|
60.9
|
|
Fiscal Year Ending
|
|
||
2016
|
$
|
53.2
|
|
2017
|
52.9
|
|
|
2018
|
51.5
|
|
|
2019
|
51.2
|
|
|
2020
|
51.1
|
|
|
Thereafter
|
42.6
|
|
|
Total estimated future amortization expense
|
$
|
302.5
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Stated Interest Rate
|
Effective Interest Rate
(1)
|
||||||||||||
Issuance
|
Face Value
|
Estimated Fair Value
|
|
Face Value
|
Estimated Fair Value
|
|
||||||||||||
2016 notes
|
$
|
400.0
|
|
$
|
400
|
|
|
$
|
400.0
|
|
$
|
400
|
|
|
0.875
|
%
|
0.941
|
%
|
2017 notes
|
—
|
|
—
|
|
|
550.0
|
|
625
|
|
|
6.250
|
%
|
—
|
%
|
||||
2018 notes
|
350.0
|
|
354
|
|
|
350.0
|
|
353
|
|
|
2.000
|
%
|
2.012
|
%
|
||||
2022 notes
|
500.0
|
|
503
|
|
|
—
|
|
—
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
2023 notes
|
750.0
|
|
790
|
|
|
750.0
|
|
786
|
|
|
3.850
|
%
|
2.860
|
%
|
||||
2045 notes
|
350.0
|
|
355
|
|
|
—
|
|
—
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
Total
|
2,350.0
|
|
2,402
|
|
|
2,050.0
|
|
2,164
|
|
|
|
|
||||||
Aggregate unamortized discount
|
2.5
|
|
|
|
1.7
|
|
|
|
|
|
||||||||
Total
|
$
|
2,347.5
|
|
|
|
$
|
2,048.3
|
|
|
|
|
|
(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
|
Total
|
||
2016
|
$
|
—
|
|
2017
|
400.0
|
|
|
2018
|
—
|
|
|
2019
|
350.0
|
|
|
2020
|
—
|
|
|
Thereafter
|
1,600.0
|
|
|
Total
|
$
|
2,350.0
|
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||
Minimum rent
|
$
|
1,026.3
|
|
|
$
|
907.4
|
|
|
$
|
838.3
|
|
Contingent rent
|
111.5
|
|
|
66.8
|
|
|
56.4
|
|
|||
Total
|
$
|
1,137.8
|
|
|
$
|
974.2
|
|
|
$
|
894.7
|
|
Fiscal Year Ending
|
Operating Leases
|
|
Lease Financing Arrangements
|
||||
2016
|
$
|
1,032.4
|
|
|
$
|
3.2
|
|
2017
|
892.5
|
|
|
3.2
|
|
||
2018
|
739.8
|
|
|
3.2
|
|
||
2019
|
624.0
|
|
|
3.2
|
|
||
2020
|
548.9
|
|
|
3.2
|
|
||
Thereafter
|
1,831.9
|
|
|
31.1
|
|
||
Total minimum lease payments
|
$
|
5,669.5
|
|
|
$
|
47.1
|
|
|
Dividend Per Share
|
|
Record date
|
|
Total Amount
|
|
Payment Date
|
Fiscal Year 2015
|
|
|
|
|
|
|
|
First quarter
|
$0.16
|
|
February 5, 2015
|
|
$240.1
|
|
February 20, 2015
|
Second quarter
|
$0.16
|
|
May 7, 2015
|
|
$240.1
|
|
May 22, 2015
|
Third quarter
|
$0.16
|
|
August 6, 2015
|
|
$239.0
|
|
August 21, 2015
|
Fourth quarter
|
$0.20
|
|
November 12, 2015
|
|
$297.0
|
|
November 27, 2015
|
Fiscal Year 2014:
|
|
|
|
|
|
|
|
First quarter
|
$0.13
|
|
February 6, 2014
|
|
$196.4
|
|
February 21, 2014
|
Second quarter
|
$0.13
|
|
May 8, 2014
|
|
$195.5
|
|
May 23, 2014
|
Third quarter
|
$0.13
|
|
August 7, 2014
|
|
$195.3
|
|
August 22, 2014
|
Fourth quarter
|
$0.16
|
|
November 13, 2014
|
|
$239.8
|
|
November 28, 2014
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment
|
|
Total
|
||||||||||
September 27, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(0.4
|
)
|
|
$
|
46.3
|
|
|
$
|
3.2
|
|
|
$
|
(23.8
|
)
|
|
$
|
25.3
|
|
Net gains/(losses) recognized in OCI before reclassifications
|
0.9
|
|
|
30.8
|
|
|
2.7
|
|
|
(185.6
|
)
|
|
(151.2
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(0.6
|
)
|
|
(51.5
|
)
|
|
(4.6
|
)
|
|
14.3
|
|
|
(42.4
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
0.3
|
|
|
(20.7
|
)
|
|
(1.9
|
)
|
|
(171.3
|
)
|
|
(193.6
|
)
|
|||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(31.1
|
)
|
|
(31.1
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(0.1
|
)
|
|
$
|
25.6
|
|
|
$
|
1.3
|
|
|
$
|
(226.2
|
)
|
|
$
|
(199.4
|
)
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment
|
|
Total
|
||||||||||
September 28, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(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) attributable to Starbucks
|
0.1
|
|
|
19.5
|
|
|
16.1
|
|
|
(77.4
|
)
|
|
(41.7
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(0.4
|
)
|
|
$
|
46.3
|
|
|
$
|
3.2
|
|
|
$
|
(23.8
|
)
|
|
$
|
25.3
|
|
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||
|
Fiscal Year Ended
|
|
||||||||
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
||||||
Gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
||||
Interest rate hedges
|
|
$
|
3.2
|
|
|
$
|
5.0
|
|
|
Interest expense
|
Cross-currency swaps
|
|
46.2
|
|
|
—
|
|
|
Interest income and other, net
|
||
Foreign currency hedges
|
|
14.0
|
|
|
5.1
|
|
|
Revenue
|
||
Foreign currency/coffee hedges
|
|
8.6
|
|
|
(10.0
|
)
|
|
Cost of sales including occupancy costs
|
||
Gains/(losses) on net investment hedges
(1)
|
|
7.2
|
|
|
—
|
|
|
Gain resulting from acquisition of joint venture
|
||
Translation adjustment
(2)
|
|
|
|
|
|
|
||||
Starbucks Japan
|
|
(7.2
|
)
|
|
—
|
|
|
Gain resulting from acquisition of joint venture
|
||
Other
|
|
(7.1
|
)
|
|
—
|
|
|
Interest income and other, net
|
||
|
|
64.9
|
|
|
0.1
|
|
|
Total before tax
|
||
|
|
(23.1
|
)
|
|
(3.3
|
)
|
|
Tax (expense)/benefit
|
||
|
|
$
|
41.8
|
|
|
$
|
(3.2
|
)
|
|
Net of tax
|
(1)
|
Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting
39.5%
equity method investment in Starbucks Japan.
|
(2)
|
Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign business.
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||
Options
|
$
|
37.8
|
|
|
$
|
41.8
|
|
|
$
|
37.1
|
|
RSUs
|
172.0
|
|
|
141.4
|
|
|
105.2
|
|
|||
Total stock-based compensation expense recognized in the consolidated statements of earnings
|
$
|
209.8
|
|
|
$
|
183.2
|
|
|
$
|
142.3
|
|
Total related tax benefit
|
$
|
72.3
|
|
|
$
|
63.4
|
|
|
$
|
49.8
|
|
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
|
$
|
1.9
|
|
|
$
|
1.9
|
|
|
$
|
1.8
|
|
|
Employee Stock Options
Granted During the Period |
||||||||||
Fiscal Year Ended
|
2015
|
|
2014
|
|
2013
|
||||||
Expected term (in years)
|
4.2
|
|
|
4.5
|
|
|
4.8
|
|
|||
Expected stock price volatility
|
22.3
|
%
|
|
26.8
|
%
|
|
34.0
|
%
|
|||
Risk-free interest rate
|
1.1
|
%
|
|
1.1
|
%
|
|
0.7
|
%
|
|||
Expected dividend yield
|
1.6
|
%
|
|
1.3
|
%
|
|
1.6
|
%
|
|||
Weighted average grant price
|
$
|
39.89
|
|
|
$
|
40.12
|
|
|
$
|
25.62
|
|
Estimated fair value per option granted
|
$
|
6.58
|
|
|
$
|
8.36
|
|
|
$
|
6.44
|
|
|
Shares
Subject to Options |
|
Weighted
Average Exercise Price per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding, September 28, 2014
|
39.6
|
|
|
$
|
18.93
|
|
|
5.8
|
|
$
|
754
|
|
Granted
|
6.4
|
|
|
39.89
|
|
|
|
|
|
|||
Exercised
|
(11.3
|
)
|
|
14.99
|
|
|
|
|
|
|||
Expired/forfeited
|
(1.1
|
)
|
|
32.38
|
|
|
|
|
|
|||
Outstanding, September 27, 2015
|
33.6
|
|
|
23.81
|
|
|
6.0
|
|
1,150
|
|
||
Exercisable, September 27, 2015
|
21.1
|
|
|
16.75
|
|
|
4.7
|
|
872
|
|
||
Vested and expected to vest, September 27, 2015
|
32.4
|
|
|
23.29
|
|
|
5.9
|
|
1,125
|
|
|
Number
of Shares |
|
Weighted
Average Grant Date Fair Value per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Nonvested, September 28, 2014
|
10.8
|
|
|
$
|
31.17
|
|
|
1.0
|
|
$
|
407
|
|
Granted
|
6.7
|
|
|
38.56
|
|
|
|
|
|
|||
Vested
|
(5.1
|
)
|
|
26.73
|
|
|
|
|
|
|||
Forfeited/canceled
|
(1.7
|
)
|
|
36.10
|
|
|
|
|
|
|||
Nonvested, September 27, 2015
|
10.7
|
|
|
36.35
|
|
|
1.0
|
|
620
|
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||||||||
|
|
|
Total
|
Litigation charge
|
All Other
|
||||||||||||
United States
|
$
|
2,837.2
|
|
|
$
|
2,572.4
|
|
|
$
|
(674.0
|
)
|
$
|
(2,784.1
|
)
|
$
|
2,110.1
|
|
Foreign
|
1,065.8
|
|
|
587.3
|
|
|
444.1
|
|
—
|
|
444.1
|
|
|||||
Total earnings/(loss) before income taxes
|
$
|
3,903.0
|
|
|
$
|
3,159.7
|
|
|
$
|
(229.9
|
)
|
$
|
(2,784.1
|
)
|
$
|
2,554.2
|
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||||||||
|
|
|
Total
|
Litigation charge
|
All Other
|
||||||||||||
Current taxes:
|
|
|
|
|
|
|
|
||||||||||
U.S. federal
|
$
|
801.0
|
|
|
$
|
822.7
|
|
|
$
|
616.6
|
|
$
|
—
|
|
$
|
616.6
|
|
U.S. state and local
|
150.1
|
|
|
132.9
|
|
|
93.8
|
|
—
|
|
93.8
|
|
|||||
Foreign
|
172.2
|
|
|
128.8
|
|
|
95.9
|
|
—
|
|
95.9
|
|
|||||
Total current taxes
|
1,123.3
|
|
|
1,084.4
|
|
|
806.3
|
|
—
|
|
806.3
|
|
|||||
Deferred taxes:
|
|
|
|
|
|
|
|
||||||||||
U.S. federal
|
56.5
|
|
|
12.0
|
|
|
(898.8
|
)
|
(922.3
|
)
|
23.5
|
|
|||||
U.S. state and local
|
4.0
|
|
|
(4.9
|
)
|
|
(144.0
|
)
|
(148.7
|
)
|
4.7
|
|
|||||
Foreign
|
(40.1
|
)
|
|
0.5
|
|
|
(2.2
|
)
|
—
|
|
(2.2
|
)
|
|||||
Total deferred taxes
|
20.4
|
|
|
7.6
|
|
|
(1,045.0
|
)
|
(1,071.0
|
)
|
26.0
|
|
|||||
Total income tax expense/(benefit)
|
$
|
1,143.7
|
|
|
$
|
1,092.0
|
|
|
$
|
(238.7
|
)
|
$
|
(1,071.0
|
)
|
$
|
832.3
|
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|||||||
|
|
|
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
|
2.8
|
|
|
2.6
|
|
|
15.8
|
|
3.5
|
|
2.4
|
|
Benefits and taxes related to foreign operations
|
(2.1
|
)
|
|
(1.9
|
)
|
|
37.5
|
|
—
|
|
(3.4
|
)
|
Domestic production activity deduction
|
(2.2
|
)
|
|
(0.7
|
)
|
|
8.1
|
|
—
|
|
(0.7
|
)
|
Domestic tax credits
|
(0.2
|
)
|
|
(0.2
|
)
|
|
2.8
|
|
—
|
|
(0.3
|
)
|
Charitable contributions
|
(0.3
|
)
|
|
(0.4
|
)
|
|
3.9
|
|
—
|
|
(0.3
|
)
|
Gain resulting from acquisition of joint venture
|
(3.7
|
)
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Other, net
|
—
|
|
|
0.2
|
|
|
0.7
|
|
—
|
|
(0.1
|
)
|
Effective tax rate
|
29.3
|
%
|
|
34.6
|
%
|
|
103.8
|
%
|
38.5
|
%
|
32.6
|
%
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
||||
Deferred tax assets:
|
|
|
|
||||
Property, plant and equipment
|
$
|
121.4
|
|
|
$
|
78.5
|
|
Accrued occupancy costs
|
98.4
|
|
|
58.8
|
|
||
Accrued compensation and related costs
|
81.7
|
|
|
75.3
|
|
||
Other accrued liabilities
|
49.0
|
|
|
27.6
|
|
||
Asset retirement obligation asset
|
29.0
|
|
|
18.6
|
|
||
Stored value card liability
|
99.1
|
|
|
63.4
|
|
||
Asset impairments
|
26.2
|
|
|
49.5
|
|
||
Tax credits
|
20.8
|
|
|
20.3
|
|
||
Stock-based compensation
|
135.5
|
|
|
131.5
|
|
||
Net operating losses
|
93.4
|
|
|
104.4
|
|
||
Litigation charge
|
931.0
|
|
|
1,002.0
|
|
||
Other
|
104.5
|
|
|
77.0
|
|
||
Total
|
$
|
1,790.0
|
|
|
$
|
1,706.9
|
|
Valuation allowance
|
(143.7
|
)
|
|
(166.8
|
)
|
||
Total deferred tax asset, net of valuation allowance
|
$
|
1,646.3
|
|
|
$
|
1,540.1
|
|
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(217.5
|
)
|
|
(148.2
|
)
|
||
Intangible assets and goodwill
|
(177.3
|
)
|
|
(92.9
|
)
|
||
Other
|
(114.1
|
)
|
|
(89.4
|
)
|
||
Total
|
(508.9
|
)
|
|
(330.5
|
)
|
||
Net deferred tax asset
|
$
|
1,137.4
|
|
|
$
|
1,209.6
|
|
Reported as:
|
|
|
|
||||
Current deferred income tax assets
|
$
|
381.7
|
|
|
$
|
317.4
|
|
Long-term deferred income tax assets
|
828.9
|
|
|
903.3
|
|
||
Current deferred income tax liabilities (included in Accrued liabilities)
|
(5.4
|
)
|
|
(4.2
|
)
|
||
Long-term deferred income tax liabilities (included in Other long-term liabilities)
|
(67.8
|
)
|
|
(6.9
|
)
|
||
Net deferred tax asset
|
$
|
1,137.4
|
|
|
$
|
1,209.6
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||
Beginning balance
|
$
|
112.7
|
|
|
$
|
88.8
|
|
|
$
|
75.3
|
|
Increase related to prior year tax positions
|
7.9
|
|
|
1.4
|
|
|
8.9
|
|
|||
Decrease related to prior year tax positions
|
(0.9
|
)
|
|
(2.2
|
)
|
|
(9.3
|
)
|
|||
Increase related to current year tax positions
|
32.0
|
|
|
26.7
|
|
|
19.3
|
|
|||
Decrease related to current year tax positions
|
(0.6
|
)
|
|
(1.9
|
)
|
|
(0.4
|
)
|
|||
Decreases related to settlements with taxing authorities
|
(0.7
|
)
|
|
(0.1
|
)
|
|
—
|
|
|||
Decreases related to lapsing of statute of limitations
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
|||
Ending balance
|
$
|
150.4
|
|
|
$
|
112.7
|
|
|
$
|
88.8
|
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||
Net earnings attributable to Starbucks
|
$
|
2,757.4
|
|
|
$
|
2,068.1
|
|
|
$
|
8.3
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,495.9
|
|
|
1,506.3
|
|
|
1,498.5
|
|
|||
Dilutive effect of outstanding common stock options and RSUs
|
17.5
|
|
|
20.0
|
|
|
26.0
|
|
|||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,513.4
|
|
|
1,526.3
|
|
|
1,524.5
|
|
|||
EPS — basic
|
$
|
1.84
|
|
|
$
|
1.37
|
|
|
$
|
0.01
|
|
EPS — diluted
|
$
|
1.82
|
|
|
$
|
1.35
|
|
|
$
|
0.01
|
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
|||||||||||||||
Beverage
|
$
|
11,115.4
|
|
|
58
|
%
|
|
$
|
9,458.4
|
|
|
58
|
%
|
|
$
|
8,674.7
|
|
|
58
|
%
|
Food
|
3,085.3
|
|
|
16
|
%
|
|
2,505.2
|
|
|
15
|
%
|
|
2,189.8
|
|
|
15
|
%
|
|||
Packaged and single-serve coffees and teas
|
2,619.9
|
|
|
14
|
%
|
|
2,370.0
|
|
|
14
|
%
|
|
2,206.5
|
|
|
15
|
%
|
|||
Other
(1)
|
2,342.1
|
|
|
12
|
%
|
|
2,114.2
|
|
|
13
|
%
|
|
1,795.8
|
|
|
12
|
%
|
|||
Total
|
$
|
19,162.7
|
|
|
100
|
%
|
|
$
|
16,447.8
|
|
|
100
|
%
|
|
$
|
14,866.8
|
|
|
100
|
%
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||
Net revenues:
|
|
|
|
|
|
||||||
United States
|
$
|
14,123.7
|
|
|
$
|
12,590.6
|
|
|
$
|
11,389.6
|
|
Other countries
|
5,039.0
|
|
|
3,857.2
|
|
|
3,477.2
|
|
|||
Total
|
$
|
19,162.7
|
|
|
$
|
16,447.8
|
|
|
$
|
14,866.8
|
|
|
|
|
|
|
|
||||||
Long-lived assets:
|
|
|
|
|
|
||||||
United States
|
$
|
5,468.1
|
|
|
$
|
5,135.8
|
|
|
$
|
4,641.3
|
|
Other countries
|
2,625.3
|
|
|
1,448.4
|
|
|
1,404.0
|
|
|||
Total
|
$
|
8,093.4
|
|
|
$
|
6,584.2
|
|
|
$
|
6,045.3
|
|
(
in millions
)
|
Americas
|
|
China /
Asia Pacific
|
|
EMEA
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
Fiscal 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
13,293.4
|
|
|
$
|
2,395.9
|
|
|
$
|
1,216.7
|
|
|
$
|
1,730.9
|
|
|
$
|
525.8
|
|
|
$
|
19,162.7
|
|
Depreciation and amortization expenses
|
522.3
|
|
|
150.7
|
|
|
52.0
|
|
|
2.7
|
|
|
16.3
|
|
|
744.0
|
|
||||||
Income from equity investees
|
—
|
|
|
119.6
|
|
|
3.1
|
|
|
127.2
|
|
|
—
|
|
|
249.9
|
|
||||||
Operating income/(loss)
|
3,223.3
|
|
|
500.5
|
|
|
168.2
|
|
|
653.9
|
|
|
(24.8
|
)
|
|
4,521.1
|
|
||||||
Total assets
|
2,726.7
|
|
|
2,230.5
|
|
|
749.1
|
|
|
87.3
|
|
|
1,785.3
|
|
|
7,578.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
11,980.5
|
|
|
$
|
1,129.6
|
|
|
$
|
1,294.8
|
|
|
$
|
1,546.0
|
|
|
$
|
496.9
|
|
|
$
|
16,447.8
|
|
Depreciation and amortization expenses
|
469.5
|
|
|
46.1
|
|
|
59.4
|
|
|
1.8
|
|
|
15.2
|
|
|
592.0
|
|
||||||
Income from equity investees
|
—
|
|
|
164.0
|
|
|
3.7
|
|
|
100.6
|
|
|
—
|
|
|
268.3
|
|
||||||
Operating income/(loss)
|
2,809.0
|
|
|
372.5
|
|
|
119.2
|
|
|
557.2
|
|
|
(26.8
|
)
|
|
3,831.1
|
|
||||||
Total assets
|
2,521.4
|
|
|
939.8
|
|
|
663.0
|
|
|
84.6
|
|
|
825.2
|
|
|
5,034.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
11,000.8
|
|
|
$
|
917.0
|
|
|
$
|
1,160.0
|
|
|
$
|
1,398.9
|
|
|
$
|
390.1
|
|
|
$
|
14,866.8
|
|
Depreciation and amortization expenses
|
429.3
|
|
|
33.8
|
|
|
55.5
|
|
|
1.1
|
|
|
11.7
|
|
|
531.4
|
|
||||||
Income from equity investees
|
2.4
|
|
|
152.0
|
|
|
0.4
|
|
|
96.6
|
|
|
—
|
|
|
251.4
|
|
||||||
Operating income/(loss)
|
2,365.2
|
|
|
321.2
|
|
|
64.2
|
|
|
415.5
|
|
|
(34.5
|
)
|
|
3,131.6
|
|
||||||
Total assets
|
2,323.4
|
|
|
805.0
|
|
|
510.6
|
|
|
89.2
|
|
|
821.1
|
|
|
4,549.3
|
|
Fiscal Year Ended
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
Sep 29, 2013
|
||||||
Total segment operating income
|
$
|
4,521.1
|
|
|
$
|
3,831.1
|
|
|
$
|
3,131.6
|
|
Unallocated corporate operating expenses
(1)
|
(920.1
|
)
|
|
(750.0
|
)
|
|
(3,457.0
|
)
|
|||
Consolidated operating income/(loss)
|
3,601.0
|
|
|
3,081.1
|
|
|
(325.4
|
)
|
|||
Gain resulting from acquisition of joint venture
|
390.6
|
|
|
—
|
|
|
—
|
|
|||
Loss on extinguishment of debt
|
(61.1
|
)
|
|
—
|
|
|
—
|
|
|||
Interest income and other, net
|
43.0
|
|
|
142.7
|
|
|
123.6
|
|
|||
Interest expense
|
(70.5
|
)
|
|
(64.1
|
)
|
|
(28.1
|
)
|
|||
Earnings/(loss) before income taxes
|
$
|
3,903.0
|
|
|
$
|
3,159.7
|
|
|
$
|
(229.9
|
)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
||||||||||
Fiscal 2015:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
4,803.2
|
|
|
$
|
4,563.5
|
|
|
$
|
4,881.2
|
|
|
$
|
4,914.8
|
|
|
$
|
19,162.7
|
|
Operating income
|
915.5
|
|
|
777.5
|
|
|
938.6
|
|
|
969.4
|
|
|
3,601.0
|
|
|||||
Net earnings attributable to Starbucks
|
983.1
|
|
|
494.9
|
|
|
626.7
|
|
|
652.5
|
|
|
2,757.4
|
|
|||||
EPS — diluted
(1)
|
0.65
|
|
|
0.33
|
|
|
0.41
|
|
|
0.43
|
|
|
1.82
|
|
|||||
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
(1)
|
0.35
|
|
|
0.28
|
|
|
0.34
|
|
|
0.39
|
|
|
1.35
|
|
(1)
|
As discussed in
Note 1
, Summary of Significant Accounting Policies, on April 9, 2015, we effected a
two
-for-one stock split of our
$0.001
par value common stock for shareholders of record as of March 30, 2015. All per-share data presented in this note has been retroactively adjusted to reflect this stock split.
|
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 27, 2015
,
September 28, 2014
, and
September 29, 2013
;
|
•
|
Consolidated Statements of Comprehensive Income for the fiscal years ended
September 27, 2015
,
September 28, 2014
, and
September 29, 2013
;
|
•
|
Consolidated Balance Sheets as of
September 27, 2015
and
September 28, 2014
;
|
•
|
Consolidated Statements of Cash Flows for the fiscal years ended
September 27, 2015
,
September 28, 2014
, and
September 29, 2013
;
|
•
|
Consolidated Statements of Equity for the fiscal years ended
September 27, 2015
,
September 28, 2014
, and
September 29, 2013
;
|
•
|
Notes to Consolidated Financial Statements; and
|
•
|
Reports of Independent Registered Public Accounting Firm
|
|
|
|
|
STARBUCKS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Howard Schultz
|
|
|
Howard Schultz
chairman and chief executive officer
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
By:
|
|
/s/ Howard Schultz
|
|
chairman 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
|
|
4/28/2015
|
|
3.1
|
|
|
3.2
|
|
Amended and Restated Bylaws of Starbucks Corporation (As amended and restated through January 20, 2015)
|
|
8-K
|
|
0-20322
|
|
1/22/2015
|
|
3.1
|
|
|
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
|
|
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
|
|
|
4.3
|
|
Form of 3.850% Senior Notes due October 1, 2023
|
|
8-K
|
|
0-20322
|
|
9/6/2013
|
|
4.3
|
|
|
4.4
|
|
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
|
|
|
4.5
|
|
Form of 0.875% Senior Notes due December 5, 2016
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.3
|
|
|
4.6
|
|
Form of 2.000% Senior Notes due December 5, 2018
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.4
|
|
|
4.7
|
|
Fourth Supplemental Indenture, dated as of June 10, 2015, by and between Starbucks Corporation and Deutsche Bank Trust Company Americas, as trustee (2.700% Senior Notes due June 15, 2022 and 4.300% Senior Notes due June 15, 2045)
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.2
|
|
|
4.8
|
|
Form of 2.700% Senior Notes due June 15, 2022
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.3
|
|
|
4.9
|
|
Form of 4.300% Senior Notes due June 15, 2045
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
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, and as restated on April 9, 2015 to reflect adjustments for the 2-for-1 forward stock split effective on such date
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
10.6
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
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, and as restated on April 9, 2015 to reflect adjustments for the 2-for-1 forward stock split effective on such date
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
10.5
|
|
|
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 UK Share Save Plan
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.9
|
|
|
10.9*
|
|
Starbucks Corporation Directors Deferred Compensation Plan, as amended and restated effective September 29, 2003
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.10
|
|
|
10.10*
|
|
Starbucks Corporation Deferred Compensation Plan for Non-Employee Directors, effective October 3, 2011
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.11
|
|
|
10.11*
|
|
Starbucks Corporation UK Share Incentive Plan, as amended and restated effective November 14, 2006
|
|
10-K
|
|
0-20322
|
|
12/14/2006
|
|
10.12
|
|
|
10.12*
|
|
Starbucks Corporation 2005 Long-Term Equity Incentive Plan, as amended and restated effective March 20, 2013, and as restated on April 9, 2015 to reflect adjustments for the 2-for-1 forward stock split effective on such date
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
10.4
|
|
|
10.13*
|
|
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
|
|
|
10.14*
|
|
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
|
|
|
10.15*
|
|
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
|
|
|
10.16*
|
|
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
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
10.17*
|
|
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
|
|
|
10.18*
|
|
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
|
|
|
10.19
|
|
Credit Agreement dated November 6, 2015 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
|
|
11/6/2015
|
|
10.1
|
|
|
10.20
|
|
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
|
|
|
10.21
|
|
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
|
|
|
10.22*
|
|
Letter Agreement dated February 21, 2008 between Starbucks Corporation and Clifford Burrows
|
|
10-Q
|
|
0-20322
|
|
5/8/2008
|
|
10.3
|
|
|
10.23*
|
|
Form of Time Vested Restricted Stock Unit Grant Agreement (U.S.) under the Key Employee Sub-Plan to the 2005 Long-Term Equity Incentive Plan
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.30
|
|
|
10.24*
|
|
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
|
|
|
10.25*
|
|
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
|
|
|
10.26*
|
|
Letter Agreement dated November 30, 2009 between Starbucks Corporation and John Culver
|
|
10-Q
|
|
0-20322
|
|
2/2/2010
|
|
10.3
|
|
|
10.27*
|
|
Letter Agreement dated May 16, 2012 between Starbucks Corporation and Lucy Lee Helm
|
|
10-K
|
|
0-20322
|
|
11/14/2014
|
|
10.33
|
|
|
10.28*
|
|
Letter Agreement dated January 29, 2014 between Starbucks Corporation and Troy Alstead
|
|
8-K
|
|
0-20322
|
|
1/29/2014
|
|
10.1
|
|
|
10.29*
|
|
Letter Agreement dated January 29, 2014 between Starbucks Corporation and Scott Maw
|
|
8-K
|
|
0-20322
|
|
1/29/2014
|
|
10.2
|
|
|
10.30*
|
|
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
|
|
|
10.31*
|
|
Offer Letter dated January 22, 2015 between Starbucks Corporation and Kevin Johnson
|
|
8-K
|
|
0-20322
|
|
1/22/2015
|
|
10.1
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
Computation of Ratio of Earnings to Fixed Charges
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
|
Subsidiaries of Starbucks Corporation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
|
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
|
|
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
|
|
|
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 27, 2015, 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 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
|
Sep 30,
2012 |
|
Oct 2,
2011 |
||||||||||
Fiscal year ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings/(loss)
(1)
|
|
$
|
3,903.0
|
|
|
$
|
3,159.7
|
|
|
$
|
(229.9
|
)
|
|
$
|
2,059.1
|
|
|
$
|
1,811.1
|
|
Income from equity investees
|
|
(249.9
|
)
|
|
(268.3
|
)
|
|
(251.4
|
)
|
|
(210.7
|
)
|
|
(173.7
|
)
|
|||||
Distributed income from equity investees
|
|
148.2
|
|
|
139.2
|
|
|
115.6
|
|
|
86.7
|
|
|
85.6
|
|
|||||
Amortization of capitalized interest
|
|
4.1
|
|
|
3.6
|
|
|
2.6
|
|
|
2.2
|
|
|
1.8
|
|
|||||
Fixed charges, excluding capitalized interest
|
|
326.5
|
|
|
310.1
|
|
|
237.7
|
|
|
224.5
|
|
|
252.0
|
|
|||||
Total earnings/(loss) available for fixed charges
|
|
$
|
4,131.9
|
|
|
$
|
3,344.3
|
|
|
$
|
(125.4
|
)
|
|
$
|
2,161.8
|
|
|
$
|
1,976.8
|
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and debt expense
(2)
|
|
$
|
74.2
|
|
|
$
|
70.2
|
|
|
$
|
38.5
|
|
|
$
|
35.9
|
|
|
$
|
37.7
|
|
Interest portion of rental expense
|
|
256.0
|
|
|
246.0
|
|
|
209.6
|
|
|
191.8
|
|
|
218.7
|
|
|||||
Total fixed charges
|
|
$
|
330.2
|
|
|
$
|
316.2
|
|
|
$
|
248.1
|
|
|
$
|
227.7
|
|
|
$
|
256.4
|
|
Ratio of earnings to fixed charges
(3)
|
|
12.5
|
|
|
10.6
|
|
|
—
|
|
|
9.5
|
|
|
7.7
|
|
Entity Name
|
|
Organized Under the Laws of:
|
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
|
CHH Cafe LLC
|
|
Texas
|
CHH Holdings of Texas LLC
|
|
Texas
|
Coffee Concepts (Southern China) Limited
|
|
Hong Kong
|
Coffee House Holdings, Inc.
|
|
Washington
|
Corporacion Starbucks Farmer Support Center Colombia
|
|
Colombia
|
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
|
SBI Nevada, Inc.
|
|
Nevada
|
SCI Europe I, LLC
|
|
Washington
|
SCI Europe II, LLC
|
|
Washington
|
SCI Investment, Inc.
|
|
Washington
|
SCI Ventures, S.L.
|
|
Spain
|
Seastar Colombia Company S.A.S
|
|
Colombia
|
Seattle Coffee Company
|
|
Georgia
|
Seattle’s Best Coffee LLC
|
|
Washington
|
Shaya Coffee Limited
|
|
Cyprus
|
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) Co. 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 Investment 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 Private Limited
|
|
India
|
Teavana Canada, ULC
|
|
British Columbia
|
Teavana Corporation
|
|
Georgia
|
Teavana Puerto Rico, LLC
|
|
Delaware
|
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 27, 2015
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 and chief executive officer
|
1.
|
I have reviewed this Annual Report on Form 10-K for the fiscal year ended
September 27, 2015
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 and chief executive officer
|
|
/s/ Scott Maw
|
|
Scott Maw
|
|
executive vice president, chief financial officer
|