Washington
|
91-1325671
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(State or Other Jurisdiction of
Incorporation or Organization)
|
(IRS Employer
Identification No.)
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
Title
|
Shares Outstanding as of July 20, 2016
|
Common Stock, par value $0.001 per share
|
1,466.6 million
|
|
|
|
PART I. FINANCIAL INFORMATION
|
||
|
|
|
Item 1
|
||
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||
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||
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||
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||
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||
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Item 2
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Item 3
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Item 4
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||
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PART II. OTHER INFORMATION
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||
|
|
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Item 1
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||
Item 1A
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Item 2
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Item 6
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||
Item 1.
|
Financial Statements
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||||
Company-operated stores
|
$
|
4,181.6
|
|
|
$
|
3,915.0
|
|
|
$
|
12,336.3
|
|
|
$
|
11,310.7
|
|
Licensed stores
|
527.2
|
|
|
475.2
|
|
|
1,561.0
|
|
|
1,380.5
|
|
||||
CPG, foodservice and other
|
529.2
|
|
|
491.0
|
|
|
1,707.4
|
|
|
1,556.7
|
|
||||
Total net revenues
|
5,238.0
|
|
|
4,881.2
|
|
|
15,604.7
|
|
|
14,247.9
|
|
||||
Cost of sales including occupancy costs
|
2,060.3
|
|
|
1,953.9
|
|
|
6,256.9
|
|
|
5,804.9
|
|
||||
Store operating expenses
|
1,529.4
|
|
|
1,392.4
|
|
|
4,502.0
|
|
|
4,032.5
|
|
||||
Other operating expenses
|
137.5
|
|
|
131.6
|
|
|
423.3
|
|
|
394.5
|
|
||||
Depreciation and amortization expenses
|
247.6
|
|
|
236.5
|
|
|
730.9
|
|
|
659.6
|
|
||||
General and administrative expenses
|
323.4
|
|
|
288.5
|
|
|
959.4
|
|
|
892.8
|
|
||||
Total operating expenses
|
4,298.2
|
|
|
4,002.9
|
|
|
12,872.5
|
|
|
11,784.3
|
|
||||
Income from equity investees
|
82.5
|
|
|
60.3
|
|
|
212.3
|
|
|
168.0
|
|
||||
Operating income
|
1,022.3
|
|
|
938.6
|
|
|
2,944.5
|
|
|
2,631.6
|
|
||||
Gain resulting from acquisition of joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
390.6
|
|
||||
Interest income and other, net
|
72.9
|
|
|
25.5
|
|
|
95.5
|
|
|
36.6
|
|
||||
Interest expense
|
(21.8
|
)
|
|
(19.1
|
)
|
|
(56.6
|
)
|
|
(52.3
|
)
|
||||
Earnings before income taxes
|
1,073.4
|
|
|
945.0
|
|
|
2,983.4
|
|
|
3,006.5
|
|
||||
Income tax expense
|
318.9
|
|
|
318.5
|
|
|
966.2
|
|
|
899.7
|
|
||||
Net earnings including noncontrolling interests
|
754.5
|
|
|
626.5
|
|
|
2,017.2
|
|
|
2,106.8
|
|
||||
Net earnings/(loss) attributable to noncontrolling interests
|
0.4
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
1.9
|
|
||||
Net earnings attributable to Starbucks
|
$
|
754.1
|
|
|
$
|
626.7
|
|
|
$
|
2,016.8
|
|
|
$
|
2,104.9
|
|
Earnings per share - basic
|
$
|
0.51
|
|
|
$
|
0.42
|
|
|
$
|
1.37
|
|
|
$
|
1.40
|
|
Earnings per share - diluted
|
$
|
0.51
|
|
|
$
|
0.41
|
|
|
$
|
1.35
|
|
|
$
|
1.39
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,465.3
|
|
|
1,498.5
|
|
|
1,474.4
|
|
|
1,499.3
|
|
||||
Diluted
|
1,479.3
|
|
|
1,515.7
|
|
|
1,489.7
|
|
|
1,516.3
|
|
||||
Cash dividends declared per share
|
$
|
0.20
|
|
|
$
|
0.16
|
|
|
$
|
0.60
|
|
|
$
|
0.48
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||
Net earnings including noncontrolling interests
|
$
|
754.5
|
|
|
$
|
626.5
|
|
|
$
|
2,017.2
|
|
|
$
|
2,106.8
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
(4.1
|
)
|
|
(1.8
|
)
|
|
0.7
|
|
|
0.3
|
|
||||
Tax (expense)/benefit
|
1.5
|
|
|
0.7
|
|
|
(0.3
|
)
|
|
(0.1
|
)
|
||||
Unrealized gains/(losses) on cash flow hedging instruments
|
(48.4
|
)
|
|
33.9
|
|
|
(110.7
|
)
|
|
97.8
|
|
||||
Tax (expense)/benefit
|
12.8
|
|
|
(8.8
|
)
|
|
27.5
|
|
|
(24.2
|
)
|
||||
Unrealized gains/(losses) on net investment hedging instruments
|
—
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
||||
Tax (expense)/benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
||||
Translation adjustment and other
|
49.8
|
|
|
(6.0
|
)
|
|
79.8
|
|
|
(169.3
|
)
|
||||
Tax (expense)/benefit
|
4.9
|
|
|
(5.0
|
)
|
|
11.5
|
|
|
2.6
|
|
||||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment
|
53.8
|
|
|
(38.2
|
)
|
|
73.3
|
|
|
(94.0
|
)
|
||||
Tax expense/(benefit)
|
(9.7
|
)
|
|
11.0
|
|
|
(11.0
|
)
|
|
27.8
|
|
||||
Other comprehensive income/(loss)
|
60.6
|
|
|
(14.2
|
)
|
|
70.8
|
|
|
(156.4
|
)
|
||||
Comprehensive income including noncontrolling interests
|
815.1
|
|
|
612.3
|
|
|
2,088.0
|
|
|
1,950.4
|
|
||||
Comprehensive income/(loss) attributable to noncontrolling interests
|
0.4
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
(29.2
|
)
|
||||
Comprehensive income attributable to Starbucks
|
$
|
814.7
|
|
|
$
|
612.5
|
|
|
$
|
2,087.6
|
|
|
$
|
1,979.6
|
|
|
Jun 26,
2016 |
|
Sep 27,
2015 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,141.8
|
|
|
$
|
1,530.1
|
|
Short-term investments
|
174.5
|
|
|
81.3
|
|
||
Accounts receivable, net
|
747.3
|
|
|
719.0
|
|
||
Inventories
|
1,325.1
|
|
|
1,306.4
|
|
||
Prepaid expenses and other current assets
|
467.5
|
|
|
334.2
|
|
||
Total current assets
|
4,856.2
|
|
|
3,971.0
|
|
||
Long-term investments
|
819.5
|
|
|
312.5
|
|
||
Equity and cost investments
|
352.6
|
|
|
352.0
|
|
||
Property, plant and equipment, net
|
4,359.2
|
|
|
4,088.3
|
|
||
Deferred income taxes, net
|
822.8
|
|
|
1,180.8
|
|
||
Other long-term assets
|
391.1
|
|
|
415.9
|
|
||
Other intangible assets
|
526.7
|
|
|
520.4
|
|
||
Goodwill
|
1,705.1
|
|
|
1,575.4
|
|
||
TOTAL ASSETS
|
$
|
13,833.2
|
|
|
$
|
12,416.3
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
675.7
|
|
|
$
|
684.2
|
|
Accrued liabilities
|
1,714.5
|
|
|
1,755.3
|
|
||
Insurance reserves
|
238.6
|
|
|
224.8
|
|
||
Stored value card liability
|
1,216.6
|
|
|
983.8
|
|
||
Current portion of long-term debt
|
399.8
|
|
|
—
|
|
||
Total current liabilities
|
4,245.2
|
|
|
3,648.1
|
|
||
Long-term debt
|
3,202.4
|
|
|
2,347.5
|
|
||
Other long-term liabilities
|
661.6
|
|
|
600.9
|
|
||
Total liabilities
|
8,109.2
|
|
|
6,596.5
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,466.4 shares and 1,485.1 shares, respectively
|
1.5
|
|
|
1.5
|
|
||
Additional paid-in capital
|
146.9
|
|
|
41.1
|
|
||
Retained earnings
|
5,702.0
|
|
|
5,974.8
|
|
||
Accumulated other comprehensive loss
|
(128.6
|
)
|
|
(199.4
|
)
|
||
Total shareholders’ equity
|
5,721.8
|
|
|
5,818.0
|
|
||
Noncontrolling interest
|
2.2
|
|
|
1.8
|
|
||
Total equity
|
5,724.0
|
|
|
5,819.8
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
13,833.2
|
|
|
$
|
12,416.3
|
|
|
Three Quarters Ended
|
||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
2,017.2
|
|
|
$
|
2,106.8
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
768.2
|
|
|
693.3
|
|
||
Deferred income taxes, net
|
344.7
|
|
|
44.1
|
|
||
Income earned from equity method investees
|
(165.5
|
)
|
|
(123.3
|
)
|
||
Distributions received from equity method investees
|
139.4
|
|
|
84.3
|
|
||
Gain resulting from acquisition/sale of equity in joint ventures and certain retail operations
|
(30.7
|
)
|
|
(390.6
|
)
|
||
Stock-based compensation
|
158.4
|
|
|
156.2
|
|
||
Excess tax benefit on share-based awards
|
(110.9
|
)
|
|
(97.9
|
)
|
||
Other
|
40.8
|
|
|
41.8
|
|
||
Cash provided by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(39.5
|
)
|
|
(31.4
|
)
|
||
Inventories
|
(15.7
|
)
|
|
(64.3
|
)
|
||
Accounts payable
|
(3.7
|
)
|
|
53.7
|
|
||
Stored value card liability
|
223.5
|
|
|
206.6
|
|
||
Other operating assets and liabilities
|
(59.3
|
)
|
|
99.9
|
|
||
Net cash provided by operating activities
|
3,266.9
|
|
|
2,779.2
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of investments
|
(1,022.7
|
)
|
|
(466.8
|
)
|
||
Sales of investments
|
409.6
|
|
|
420.1
|
|
||
Maturities and calls of investments
|
11.8
|
|
|
16.0
|
|
||
Acquisitions, net of cash acquired
|
—
|
|
|
(284.3
|
)
|
||
Additions to property, plant and equipment
|
(1,029.7
|
)
|
|
(943.5
|
)
|
||
Net proceeds from sale of equity in joint venture and certain retail operations
|
69.6
|
|
|
—
|
|
||
Other
|
3.3
|
|
|
(33.9
|
)
|
||
Net cash used by investing activities
|
(1,558.1
|
)
|
|
(1,292.4
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
1,254.5
|
|
|
848.5
|
|
||
Cash used or restricted for purchase of noncontrolling interest
|
—
|
|
|
(366.3
|
)
|
||
Proceeds from issuance of common stock
|
120.9
|
|
|
146.9
|
|
||
Excess tax benefit on share-based awards
|
110.9
|
|
|
97.9
|
|
||
Cash dividends paid
|
(884.8
|
)
|
|
(719.7
|
)
|
||
Repurchase of common stock
|
(1,590.4
|
)
|
|
(921.1
|
)
|
||
Minimum tax withholdings on share-based awards
|
(105.3
|
)
|
|
(74.5
|
)
|
||
Other
|
0.1
|
|
|
(8.5
|
)
|
||
Net cash used by financing activities
|
(1,094.1
|
)
|
|
(996.8
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(3.0
|
)
|
|
(117.9
|
)
|
||
Net increase in cash and cash equivalents
|
611.7
|
|
|
372.1
|
|
||
CASH AND CASH EQUIVALENTS:
|
|
|
|
||||
Beginning of period
|
1,530.1
|
|
|
1,708.4
|
|
||
End of period
|
$
|
2,141.8
|
|
|
$
|
2,080.5
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest, net of capitalized interest
|
$
|
68.3
|
|
|
$
|
56.6
|
|
Income taxes, net of refunds
|
$
|
669.8
|
|
|
$
|
936.5
|
|
Note 1
|
||
Note 2
|
||
Note 3
|
||
Note 4
|
||
Note 5
|
||
Note 6
|
||
Note 7
|
||
Note 8
|
||
Note 9
|
||
Note 10
|
||
Note 11
|
Note 1:
|
Summary of Significant Accounting Policies
|
|
September 27, 2015
|
||||||||||
|
As Filed
|
|
Reclass
|
|
As Adjusted
|
||||||
Current deferred income tax assets
|
$
|
381.7
|
|
|
$
|
(381.7
|
)
|
|
$
|
—
|
|
Long-term deferred income tax assets
|
828.9
|
|
|
351.9
|
|
|
1,180.8
|
|
|||
Current deferred income tax liabilities (included in Accrued liabilities)
|
5.4
|
|
|
(5.4
|
)
|
|
—
|
|
|||
Long-term deferred income tax liabilities (included in Other long-term liabilities)
|
67.8
|
|
|
(24.4
|
)
|
|
43.4
|
|
|||
Net deferred tax asset
|
$
|
1,137.4
|
|
|
$
|
—
|
|
|
$
|
1,137.4
|
|
Note 2:
|
Acquisitions and Divestitures
|
|
Net Gains/(Losses)
Included in AOCI
|
|
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
|
|
Outstanding Contract Remaining Maturity
(Months)
|
||||||||
|
Jun 26,
2016 |
|
Sep 27,
2015 |
|
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rates
|
$
|
21.3
|
|
|
$
|
30.1
|
|
|
$
|
2.9
|
|
|
0
|
Cross-currency swaps
|
(9.8
|
)
|
|
(27.8
|
)
|
|
—
|
|
|
102
|
|||
Foreign currency - other
|
(1.8
|
)
|
|
29.0
|
|
|
2.2
|
|
|
34
|
|||
Coffee
|
(4.3
|
)
|
|
(5.7
|
)
|
|
(3.9
|
)
|
|
6
|
|||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
1.3
|
|
|
1.3
|
|
|
—
|
|
|
0
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||||
|
Gains/(Losses)
Recognized in
OCI Before Reclassifications
|
|
Gains/(Losses) Reclassified from
AOCI to Earnings
|
|
Gains/(Losses)
Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from
AOCI to Earnings
|
||||||||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rates
|
$
|
(2.0
|
)
|
|
$
|
(0.7
|
)
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
|
$
|
(10.3
|
)
|
|
$
|
(7.0
|
)
|
|
$
|
4.0
|
|
|
$
|
3.8
|
|
Cross-currency swaps
|
(28.0
|
)
|
|
44.0
|
|
|
(57.6
|
)
|
|
29.5
|
|
|
(72.9
|
)
|
|
80.3
|
|
|
(95.8
|
)
|
|
82.0
|
|
||||||||
Foreign currency - other
|
(19.1
|
)
|
|
(7.5
|
)
|
|
2.2
|
|
|
7.3
|
|
|
(27.9
|
)
|
|
29.9
|
|
|
18.5
|
|
|
16.9
|
|
||||||||
Coffee
|
0.8
|
|
|
(1.9
|
)
|
|
(0.5
|
)
|
|
(0.7
|
)
|
|
0.4
|
|
|
(5.4
|
)
|
|
(1.1
|
)
|
|
(3.3
|
)
|
||||||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
7.2
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||||||||||
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 26, 2016
|
|
Jun 28, 2015
|
|
Jun 26, 2016
|
|
Jun 28, 2015
|
||||||||
Foreign currency - other
|
$
|
(7.1
|
)
|
|
$
|
2.5
|
|
|
$
|
(9.0
|
)
|
|
$
|
25.8
|
|
Dairy
|
2.9
|
|
|
0.4
|
|
|
(4.1
|
)
|
|
(2.9
|
)
|
||||
Diesel fuel
|
3.8
|
|
|
1.1
|
|
|
(0.4
|
)
|
|
(7.5
|
)
|
|
Jun 26, 2016
|
|
Sep 27, 2015
|
||||
Interest rates
|
$
|
—
|
|
|
$
|
125
|
|
Cross-currency swaps
|
718
|
|
|
717
|
|
||
Foreign currency - other
|
737
|
|
|
577
|
|
||
Coffee
|
13
|
|
|
38
|
|
||
Dairy
|
56
|
|
|
43
|
|
||
Diesel fuel
|
28
|
|
|
14
|
|
Note 4:
|
Fair Value Measurements
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Jun 26, 2016 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other Observable
Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
2,141.8
|
|
|
$
|
2,141.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
31.5
|
|
|
—
|
|
|
31.5
|
|
|
—
|
|
||||
Equity securities
|
19.9
|
|
|
—
|
|
|
19.9
|
|
|
—
|
|
||||
Foreign government obligations
|
5.0
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
||||
U.S. government treasury securities
|
51.9
|
|
|
51.9
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Total available-for-sale securities
|
109.0
|
|
|
51.9
|
|
|
57.1
|
|
|
—
|
|
||||
Trading securities
|
65.5
|
|
|
65.5
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
174.5
|
|
|
117.4
|
|
|
57.1
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
27.4
|
|
|
3.8
|
|
|
23.6
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
22.0
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
||||
Corporate debt securities
|
312.4
|
|
|
—
|
|
|
312.4
|
|
|
—
|
|
||||
Auction rate securities
|
5.7
|
|
|
—
|
|
|
—
|
|
|
5.7
|
|
||||
Foreign government obligations
|
36.3
|
|
|
—
|
|
|
36.3
|
|
|
—
|
|
||||
U.S. government treasury securities
|
307.6
|
|
|
307.6
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
16.0
|
|
|
—
|
|
|
16.0
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
119.5
|
|
|
—
|
|
|
119.5
|
|
|
—
|
|
||||
Total long-term investments
|
819.5
|
|
|
307.6
|
|
|
506.2
|
|
|
5.7
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
10.3
|
|
|
—
|
|
|
10.3
|
|
|
—
|
|
||||
Total assets
|
$
|
3,173.5
|
|
|
$
|
2,570.6
|
|
|
$
|
597.2
|
|
|
$
|
5.7
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
32.5
|
|
|
$
|
0.9
|
|
|
$
|
31.6
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
67.7
|
|
|
—
|
|
|
67.7
|
|
|
—
|
|
||||
Total liabilities
|
$
|
100.2
|
|
|
$
|
0.9
|
|
|
$
|
99.3
|
|
|
$
|
—
|
|
|
|
|
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
|
$
|
33.7
|
|
|
$
|
3.6
|
|
|
$
|
30.1
|
|
|
$
|
—
|
|
Note 5:
|
Inventories
(in millions)
|
|
Jun 26, 2016
|
|
Sep 27, 2015
|
|
Jun 28, 2015
|
||||||
Coffee:
|
|
|
|
|
|
||||||
Unroasted
|
$
|
625.2
|
|
|
$
|
529.4
|
|
|
$
|
529.5
|
|
Roasted
|
269.8
|
|
|
279.7
|
|
|
240.6
|
|
|||
Other merchandise held for sale
|
243.7
|
|
|
318.3
|
|
|
226.2
|
|
|||
Packaging and other supplies
|
186.4
|
|
|
179.0
|
|
|
169.7
|
|
|||
Total
|
$
|
1,325.1
|
|
|
$
|
1,306.4
|
|
|
$
|
1,166.0
|
|
Note 6:
|
Supplemental Balance Sheet Information
(in millions)
|
|
Jun 26, 2016
|
|
Sep 27, 2015
|
||||
Land
|
$
|
46.6
|
|
|
$
|
46.6
|
|
Buildings
|
443.7
|
|
|
411.5
|
|
||
Leasehold improvements
|
5,697.9
|
|
|
5,409.6
|
|
||
Store equipment
|
1,851.3
|
|
|
1,707.5
|
|
||
Roasting equipment
|
593.1
|
|
|
542.4
|
|
||
Furniture, fixtures and other
|
1,376.4
|
|
|
1,281.7
|
|
||
Work in progress
|
292.8
|
|
|
242.5
|
|
||
Property, plant and equipment, gross
|
10,301.8
|
|
|
9,641.8
|
|
||
Accumulated depreciation
|
(5,942.6
|
)
|
|
(5,553.5
|
)
|
||
Property, plant and equipment, net
|
$
|
4,359.2
|
|
|
$
|
4,088.3
|
|
|
Jun 26, 2016
|
|
Sep 27, 2015
|
||||
Accrued compensation and related costs
|
$
|
544.3
|
|
|
$
|
522.3
|
|
Accrued occupancy costs
|
142.9
|
|
|
137.2
|
|
||
Accrued taxes
|
185.6
|
|
|
259.0
|
|
||
Accrued dividends payable
|
293.3
|
|
|
297.0
|
|
||
Other
|
548.4
|
|
|
539.8
|
|
||
Total accrued liabilities
|
$
|
1,714.5
|
|
|
$
|
1,755.3
|
|
Note 7:
|
Debt
|
|
Jun 26, 2016
|
|
Sep 27, 2015
|
|
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
|
%
|
2018 notes
|
350.0
|
|
358
|
|
|
350.0
|
|
354
|
|
|
2.000
|
%
|
2.012
|
%
|
||||
2021 notes
|
500.0
|
|
512
|
|
|
—
|
|
—
|
|
|
2.100
|
%
|
2.293
|
%
|
||||
2021 notes
|
250.0
|
|
256
|
|
|
—
|
|
—
|
|
|
2.100
|
%
|
1.600
|
%
|
||||
2022 notes
|
500.0
|
|
527
|
|
|
500.0
|
|
503
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
2023 notes
|
750.0
|
|
845
|
|
|
750.0
|
|
790
|
|
|
3.850
|
%
|
2.860
|
%
|
||||
2026 notes
|
500.0
|
|
504
|
|
|
—
|
|
—
|
|
|
2.450
|
%
|
2.511
|
%
|
||||
2045 notes
|
350.0
|
|
406
|
|
|
350.0
|
|
355
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
Total
|
3,600.0
|
|
3,808
|
|
|
2,350.0
|
|
2,402
|
|
|
|
|
||||||
Aggregate unamortized premium/(discount)
|
2.2
|
|
|
|
(2.5
|
)
|
|
|
|
|
||||||||
Total
|
$
|
3,602.2
|
|
|
|
$
|
2,347.5
|
|
|
|
|
|
(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.
|
Maturities
|
Total
|
||
2016
|
$
|
—
|
|
2017
|
400.0
|
|
|
2018
|
—
|
|
|
2019
|
350.0
|
|
|
2020
|
—
|
|
|
Thereafter
|
2,850.0
|
|
|
Total
|
$
|
3,600.0
|
|
|
Three Quarters Ended
|
||||||||||||||||||||||
|
Jun 26, 2016
|
|
Jun 28, 2015
|
||||||||||||||||||||
|
Attributable to Starbucks
|
|
Noncontrolling interest
|
|
Total Equity
|
|
Attributable to Starbucks
|
|
Noncontrolling interest
|
|
Total Equity
|
||||||||||||
Beginning balance of total equity
|
$
|
5,818.0
|
|
|
$
|
1.8
|
|
|
$
|
5,819.8
|
|
|
$
|
5,272.0
|
|
|
$
|
1.7
|
|
|
$
|
5,273.7
|
|
Net earnings including noncontrolling interests
|
2,016.8
|
|
|
0.4
|
|
|
2,017.2
|
|
|
2,104.9
|
|
|
1.9
|
|
|
2,106.8
|
|
||||||
Translation adjustment and other, net of reclassifications and tax
|
91.3
|
|
|
—
|
|
|
91.3
|
|
|
(121.3
|
)
|
|
(31.1
|
)
|
|
(152.4
|
)
|
||||||
Unrealized gains/(losses), net of reclassifications and tax
|
(20.5
|
)
|
|
—
|
|
|
(20.5
|
)
|
|
(4.0
|
)
|
|
—
|
|
|
(4.0
|
)
|
||||||
Other comprehensive income/(loss)
|
70.8
|
|
|
—
|
|
|
70.8
|
|
|
(125.3
|
)
|
|
(31.1
|
)
|
|
(156.4
|
)
|
||||||
Stock-based compensation expense
|
159.6
|
|
|
—
|
|
|
159.6
|
|
|
157.6
|
|
|
—
|
|
|
157.6
|
|
||||||
Exercise of stock options/vesting of RSUs
|
115.4
|
|
|
—
|
|
|
115.4
|
|
|
153.2
|
|
|
—
|
|
|
153.2
|
|
||||||
Sale of common stock
|
12.7
|
|
|
—
|
|
|
12.7
|
|
|
17.5
|
|
|
—
|
|
|
17.5
|
|
||||||
Repurchase of common stock
|
(1,590.4
|
)
|
|
—
|
|
|
(1,590.4
|
)
|
|
(975.9
|
)
|
|
—
|
|
|
(975.9
|
)
|
||||||
Cash dividends declared
|
(881.1
|
)
|
|
—
|
|
|
(881.1
|
)
|
|
(718.2
|
)
|
|
—
|
|
|
(718.2
|
)
|
||||||
Noncontrolling interest resulting from acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411.1
|
|
|
411.1
|
|
||||||
Purchase of noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(29.3
|
)
|
|
(381.8
|
)
|
|
(411.1
|
)
|
||||||
Ending balance of total equity
|
$
|
5,721.8
|
|
|
$
|
2.2
|
|
|
$
|
5,724.0
|
|
|
$
|
5,856.5
|
|
|
$
|
1.8
|
|
|
$
|
5,858.3
|
|
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
June 26, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
2.9
|
|
|
$
|
(3.8
|
)
|
|
$
|
1.3
|
|
|
$
|
(189.6
|
)
|
|
$
|
(189.2
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
(2.6
|
)
|
|
(35.6
|
)
|
|
—
|
|
|
54.7
|
|
|
16.5
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(0.6
|
)
|
|
44.7
|
|
|
—
|
|
|
—
|
|
|
44.1
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(3.2
|
)
|
|
9.1
|
|
|
—
|
|
|
54.7
|
|
|
60.6
|
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(0.3
|
)
|
|
$
|
5.3
|
|
|
$
|
1.3
|
|
|
$
|
(134.9
|
)
|
|
$
|
(128.6
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
June 28, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
0.4
|
|
|
$
|
46.6
|
|
|
$
|
1.3
|
|
|
$
|
(165.2
|
)
|
|
$
|
(116.9
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
(1.1
|
)
|
|
25.1
|
|
|
—
|
|
|
(11.0
|
)
|
|
13.0
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(0.5
|
)
|
|
(26.7
|
)
|
|
—
|
|
|
—
|
|
|
(27.2
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(1.6
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
(11.0
|
)
|
|
(14.2
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(1.2
|
)
|
|
$
|
45.0
|
|
|
$
|
1.3
|
|
|
$
|
(176.2
|
)
|
|
$
|
(131.1
|
)
|
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
June 26, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(0.1
|
)
|
|
$
|
25.6
|
|
|
$
|
1.3
|
|
|
$
|
(226.2
|
)
|
|
$
|
(199.4
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
0.4
|
|
|
(83.2
|
)
|
|
—
|
|
|
91.3
|
|
|
8.5
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(0.6
|
)
|
|
62.9
|
|
|
—
|
|
|
—
|
|
|
62.3
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(0.2
|
)
|
|
(20.3
|
)
|
|
—
|
|
|
91.3
|
|
|
70.8
|
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(0.3
|
)
|
|
$
|
5.3
|
|
|
$
|
1.3
|
|
|
$
|
(134.9
|
)
|
|
$
|
(128.6
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
June 28, 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
|
0.2
|
|
|
73.6
|
|
|
2.7
|
|
|
(135.6
|
)
|
|
(59.1
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(1.0
|
)
|
|
(74.9
|
)
|
|
(4.6
|
)
|
|
14.3
|
|
|
(66.2
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(0.8
|
)
|
|
(1.3
|
)
|
|
(1.9
|
)
|
|
(121.3
|
)
|
|
(125.3
|
)
|
|||||
Purchase of noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(31.1
|
)
|
|
(31.1
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(1.2
|
)
|
|
$
|
45.0
|
|
|
$
|
1.3
|
|
|
$
|
(176.2
|
)
|
|
$
|
(131.1
|
)
|
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||
|
Jun 26, 2016
|
|
Jun 28, 2015
|
|
||||||
Gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
||||
Interest rate hedges
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
|
Interest expense
|
Cross-currency swaps
|
|
(57.6
|
)
|
|
29.5
|
|
|
Interest income and other, net
|
||
Foreign currency hedges
|
|
0.1
|
|
|
3.7
|
|
|
Revenues
|
||
Foreign currency/coffee hedges
|
|
1.6
|
|
|
3.0
|
|
|
Cost of sales including occupancy costs
|
||
|
|
(54.7
|
)
|
|
37.4
|
|
|
Total before tax
|
||
|
|
10.0
|
|
|
(10.7
|
)
|
|
Tax (expense)/benefit
|
||
|
|
$
|
(44.7
|
)
|
|
$
|
26.7
|
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||
|
Jun 26, 2016
|
|
Jun 28, 2015
|
|
||||||
Gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
||||
Interest rate hedges
|
|
$
|
4.0
|
|
|
$
|
3.8
|
|
|
Interest expense
|
Cross-currency swaps
|
|
(95.8
|
)
|
|
82.0
|
|
|
Interest income and other, net
|
||
Foreign currency hedges
|
|
5.5
|
|
|
9.6
|
|
|
Revenues
|
||
Foreign currency/coffee hedges
|
|
11.9
|
|
|
4.1
|
|
|
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
|
||
|
|
(74.4
|
)
|
|
92.4
|
|
|
Total before tax
|
||
|
|
11.5
|
|
|
(27.2
|
)
|
|
Tax (expense)/benefit
|
||
|
|
$
|
(62.9
|
)
|
|
$
|
65.2
|
|
|
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.
|
Note 9:
|
Employee Stock Plans
|
|
Quarter Ended
|
Three Quarters Ended
|
||||||||||||
|
Jun 26, 2016
|
|
Jun 28, 2015
|
Jun 26, 2016
|
|
Jun 28, 2015
|
||||||||
Options
|
$
|
9.2
|
|
|
$
|
8.3
|
|
$
|
32.2
|
|
|
$
|
28.9
|
|
Restricted Stock Units (“RSUs”)
|
40.6
|
|
|
43.7
|
|
126.2
|
|
|
127.3
|
|
||||
Total stock-based compensation expense
|
$
|
49.8
|
|
|
$
|
52.0
|
|
$
|
158.4
|
|
|
$
|
156.2
|
|
|
Stock Options
|
|
RSUs
|
||||
Options outstanding/Nonvested RSUs, September 27, 2015
|
33.6
|
|
|
10.7
|
|
||
Granted
|
5.9
|
|
|
4.0
|
|
||
Options exercised/RSUs vested
|
(5.5
|
)
|
|
(4.9
|
)
|
||
Forfeited/expired
|
(1.5
|
)
|
|
(1.3
|
)
|
||
Options outstanding/Nonvested RSUs, June 26, 2016
|
32.5
|
|
|
8.5
|
|
||
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 26, 2016
|
$
|
46.5
|
|
|
$
|
157.3
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 26, 2016
|
|
Jun 28, 2015
|
|
Jun 26, 2016
|
|
Jun 28, 2015
|
||||||||
Net earnings attributable to Starbucks
|
$
|
754.1
|
|
|
$
|
626.7
|
|
|
$
|
2,016.8
|
|
|
$
|
2,104.9
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,465.3
|
|
|
1,498.5
|
|
|
1,474.4
|
|
|
1,499.3
|
|
||||
Dilutive effect of outstanding common stock options and RSUs
|
14.0
|
|
|
17.2
|
|
|
15.3
|
|
|
17.0
|
|
||||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,479.3
|
|
|
1,515.7
|
|
|
1,489.7
|
|
|
1,516.3
|
|
||||
EPS — basic
|
$
|
0.51
|
|
|
$
|
0.42
|
|
|
$
|
1.37
|
|
|
$
|
1.40
|
|
EPS — diluted
|
$
|
0.51
|
|
|
$
|
0.41
|
|
|
$
|
1.35
|
|
|
$
|
1.39
|
|
|
Americas
|
|
China/
Asia Pacific
|
|
EMEA
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
June 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
3,645.5
|
|
|
$
|
768.2
|
|
|
$
|
273.4
|
|
|
$
|
440.8
|
|
|
$
|
110.1
|
|
|
$
|
5,238.0
|
|
Depreciation and amortization expenses
|
149.2
|
|
|
45.7
|
|
|
10.3
|
|
|
0.7
|
|
|
3.1
|
|
|
209.0
|
|
||||||
Income from equity investees
|
—
|
|
|
40.2
|
|
|
—
|
|
|
42.3
|
|
|
—
|
|
|
82.5
|
|
||||||
Operating income/(loss)
|
898.5
|
|
|
182.8
|
|
|
29.9
|
|
|
187.8
|
|
|
(14.9
|
)
|
|
1,284.1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
3,414.6
|
|
|
$
|
652.7
|
|
|
$
|
294.7
|
|
|
$
|
403.6
|
|
|
$
|
115.6
|
|
|
$
|
4,881.2
|
|
Depreciation and amortization expenses
|
130.8
|
|
|
41.2
|
|
|
12.4
|
|
|
0.7
|
|
|
4.3
|
|
|
189.4
|
|
||||||
Income from equity investees
|
—
|
|
|
27.6
|
|
|
0.9
|
|
|
31.8
|
|
|
—
|
|
|
60.3
|
|
||||||
Operating income/(loss)
|
855.3
|
|
|
150.0
|
|
|
36.0
|
|
|
143.4
|
|
|
(13.1
|
)
|
|
1,171.6
|
|
|
Americas
|
|
China/
Asia Pacific
|
|
EMEA
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
June 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
10,827.2
|
|
|
$
|
2,099.6
|
|
|
$
|
854.7
|
|
|
$
|
1,414.0
|
|
|
$
|
409.2
|
|
|
$
|
15,604.7
|
|
Depreciation and amortization expenses
|
441.6
|
|
|
131.7
|
|
|
32.4
|
|
|
2.1
|
|
|
10.1
|
|
|
617.9
|
|
||||||
Income from equity investees
|
—
|
|
|
104.3
|
|
|
1.5
|
|
|
106.5
|
|
|
—
|
|
|
212.3
|
|
||||||
Operating income/(loss)
|
2,645.1
|
|
|
439.2
|
|
|
105.8
|
|
|
563.0
|
|
|
(28.1
|
)
|
|
3,725.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
9,909.5
|
|
|
$
|
1,743.6
|
|
|
$
|
908.4
|
|
|
$
|
1,274.2
|
|
|
$
|
412.2
|
|
|
$
|
14,247.9
|
|
Depreciation and amortization expenses
|
386.5
|
|
|
106.3
|
|
|
38.9
|
|
|
2.0
|
|
|
12.2
|
|
|
545.9
|
|
||||||
Income from equity investees
|
—
|
|
|
85.8
|
|
|
2.1
|
|
|
80.1
|
|
|
—
|
|
|
168.0
|
|
||||||
Operating income/(loss)
|
2,382.5
|
|
|
370.5
|
|
|
115.2
|
|
|
456.7
|
|
|
(6.8
|
)
|
|
3,318.1
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 26, 2016
|
|
Jun 28, 2015
|
|
Jun 26, 2016
|
|
Jun 28, 2015
|
||||||||
Total segment operating income
|
$
|
1,284.1
|
|
|
$
|
1,171.6
|
|
|
$
|
3,725.0
|
|
|
$
|
3,318.1
|
|
Unallocated corporate operating expenses
|
(261.8
|
)
|
|
(233.0
|
)
|
|
(780.5
|
)
|
|
(686.5
|
)
|
||||
Consolidated operating income
|
1,022.3
|
|
|
938.6
|
|
|
2,944.5
|
|
|
2,631.6
|
|
||||
Gain resulting from acquisition of joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
390.6
|
|
||||
Interest income and other, net
|
72.9
|
|
|
25.5
|
|
|
95.5
|
|
|
36.6
|
|
||||
Interest expense
|
(21.8
|
)
|
|
(19.1
|
)
|
|
(56.6
|
)
|
|
(52.3
|
)
|
||||
Earnings before income taxes
|
$
|
1,073.4
|
|
|
$
|
945.0
|
|
|
$
|
2,983.4
|
|
|
$
|
3,006.5
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Quarter Ended Jun 26, 2016
|
|
Three Quarters Ended Jun 26, 2016
|
||||||||
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
Consolidated
(1)
|
4%
|
|
—%
|
|
4%
|
|
6%
|
|
2%
|
|
4%
|
Americas
|
4%
|
|
—%
|
|
4%
|
|
7%
|
|
2%
|
|
5%
|
China/Asia Pacific
(1)
|
3%
|
|
2%
|
|
1%
|
|
4%
|
|
2%
|
|
2%
|
EMEA
|
(1)%
|
|
—%
|
|
(2)%
|
|
—%
|
|
1%
|
|
—%
|
(1)
|
Beginning in December of fiscal 2016, comparable store sales include the results of the 1,009 company-operated stores acquired as part of the acquisition of Starbucks Japan in the first quarter of fiscal 2015.
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
%
Change
|
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
%
Change
|
||||||||||
Company-operated stores
|
$
|
4,181.6
|
|
|
$
|
3,915.0
|
|
|
6.8
|
%
|
|
$
|
12,336.3
|
|
|
$
|
11,310.7
|
|
|
9.1
|
%
|
Licensed stores
|
527.2
|
|
|
475.2
|
|
|
10.9
|
|
|
1,561.0
|
|
|
1,380.5
|
|
|
13.1
|
|
||||
CPG, foodservice and other
|
529.2
|
|
|
491.0
|
|
|
7.8
|
|
|
1,707.4
|
|
|
1,556.7
|
|
|
9.7
|
|
||||
Total net revenues
|
$
|
5,238.0
|
|
|
$
|
4,881.2
|
|
|
7.3
|
%
|
|
$
|
15,604.7
|
|
|
$
|
14,247.9
|
|
|
9.5
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||||||
|
|
|
|
|
% of Total
Net Revenues
|
|
|
|
|
|
% of Total
Net Revenues
|
||||||||||||||||
Cost of sales including occupancy costs
|
$
|
2,060.3
|
|
|
$
|
1,953.9
|
|
|
39.3
|
%
|
|
40.0
|
%
|
|
$
|
6,256.9
|
|
|
$
|
5,804.9
|
|
|
40.1
|
%
|
|
40.7
|
%
|
Store operating expenses
|
1,529.4
|
|
|
1,392.4
|
|
|
29.2
|
|
|
28.5
|
|
|
4,502.0
|
|
|
4,032.5
|
|
|
28.9
|
|
|
28.3
|
|
||||
Other operating expenses
|
137.5
|
|
|
131.6
|
|
|
2.6
|
|
|
2.7
|
|
|
423.3
|
|
|
394.5
|
|
|
2.7
|
|
|
2.8
|
|
||||
Depreciation and amortization expenses
|
247.6
|
|
|
236.5
|
|
|
4.7
|
|
|
4.8
|
|
|
730.9
|
|
|
659.6
|
|
|
4.7
|
|
|
4.6
|
|
||||
General and administrative expenses
|
323.4
|
|
|
288.5
|
|
|
6.2
|
|
|
5.9
|
|
|
959.4
|
|
|
892.8
|
|
|
6.1
|
|
|
6.3
|
|
||||
Total operating expenses
|
4,298.2
|
|
|
4,002.9
|
|
|
82.1
|
|
|
82.0
|
|
|
12,872.5
|
|
|
11,784.3
|
|
|
82.5
|
|
|
82.7
|
|
||||
Income from equity investees
|
82.5
|
|
|
60.3
|
|
|
1.6
|
|
|
1.2
|
|
|
212.3
|
|
|
168.0
|
|
|
1.4
|
|
|
1.2
|
|
||||
Operating income
|
$
|
1,022.3
|
|
|
$
|
938.6
|
|
|
19.5
|
%
|
|
19.2
|
%
|
|
$
|
2,944.5
|
|
|
$
|
2,631.6
|
|
|
18.9
|
%
|
|
18.5
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
36.6
|
%
|
|
35.6
|
%
|
|
|
|
|
|
36.5
|
%
|
|
35.7
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||||||
|
|
|
|
|
% of Total
Net Revenues
|
|
|
|
|
|
% of Total
Net Revenues |
||||||||||||||||
Operating income
|
$
|
1,022.3
|
|
|
$
|
938.6
|
|
|
19.5
|
%
|
|
19.2
|
%
|
|
$
|
2,944.5
|
|
|
$
|
2,631.6
|
|
|
18.9
|
%
|
|
18.5
|
%
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
390.6
|
|
|
—
|
|
|
2.7
|
|
||||
Interest income and other, net
|
72.9
|
|
|
25.5
|
|
|
1.4
|
|
|
0.5
|
|
|
95.5
|
|
|
36.6
|
|
|
0.6
|
|
|
0.3
|
|
||||
Interest expense
|
(21.8
|
)
|
|
(19.1
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(56.6
|
)
|
|
(52.3
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
Earnings before income taxes
|
1,073.4
|
|
|
945.0
|
|
|
20.5
|
|
|
19.4
|
|
|
2,983.4
|
|
|
3,006.5
|
|
|
19.1
|
|
|
21.1
|
|
||||
Income tax expense
|
318.9
|
|
|
318.5
|
|
|
6.1
|
|
|
6.5
|
|
|
966.2
|
|
|
899.7
|
|
|
6.2
|
|
|
6.3
|
|
||||
Net earnings including noncontrolling interests
|
754.5
|
|
|
626.5
|
|
|
14.4
|
|
|
12.8
|
|
|
2,017.2
|
|
|
2,106.8
|
|
|
12.9
|
|
|
14.8
|
|
||||
Net earnings/(loss) attributable to noncontrolling interests
|
0.4
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
||||
Net earnings attributable to Starbucks
|
$
|
754.1
|
|
|
$
|
626.7
|
|
|
14.4
|
%
|
|
12.8
|
%
|
|
$
|
2,016.8
|
|
|
$
|
2,104.9
|
|
|
12.9
|
%
|
|
14.8
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
29.7
|
%
|
|
33.7
|
%
|
|
|
|
|
|
32.4
|
%
|
|
29.9
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||||||
|
|
|
|
|
% of Americas
Net Revenues
|
|
|
|
|
|
% of Americas
Net Revenues
|
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-operated stores
|
$
|
3,269.0
|
|
|
$
|
3,061.3
|
|
|
89.7
|
%
|
|
89.7
|
%
|
|
$
|
9,697.2
|
|
|
$
|
8,890.5
|
|
|
89.6
|
%
|
|
89.7
|
%
|
Licensed stores
|
368.6
|
|
|
344.9
|
|
|
10.1
|
|
|
10.1
|
|
|
1,108.0
|
|
|
993.0
|
|
|
10.2
|
|
|
10.0
|
|
||||
Foodservice and other
|
7.9
|
|
|
8.4
|
|
|
0.2
|
|
|
0.2
|
|
|
22.0
|
|
|
26.0
|
|
|
0.2
|
|
|
0.3
|
|
||||
Total net revenues
|
3,645.5
|
|
|
3,414.6
|
|
|
100.0
|
|
|
100.0
|
|
|
10,827.2
|
|
|
9,909.5
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales including occupancy costs
|
1,289.0
|
|
|
1,227.7
|
|
|
35.4
|
|
|
36.0
|
|
|
3,865.9
|
|
|
3,624.4
|
|
|
35.7
|
|
|
36.6
|
|
||||
Store operating expenses
|
1,236.1
|
|
|
1,126.7
|
|
|
33.9
|
|
|
33.0
|
|
|
3,649.6
|
|
|
3,276.1
|
|
|
33.7
|
|
|
33.1
|
|
||||
Other operating expenses
|
25.4
|
|
|
26.9
|
|
|
0.7
|
|
|
0.8
|
|
|
85.7
|
|
|
93.4
|
|
|
0.8
|
|
|
0.9
|
|
||||
Depreciation and amortization expenses
|
149.2
|
|
|
130.8
|
|
|
4.1
|
|
|
3.8
|
|
|
441.6
|
|
|
386.5
|
|
|
4.1
|
|
|
3.9
|
|
||||
General and administrative expenses
|
47.3
|
|
|
47.2
|
|
|
1.3
|
|
|
1.4
|
|
|
139.3
|
|
|
146.6
|
|
|
1.3
|
|
|
1.5
|
|
||||
Total operating expenses
|
2,747.0
|
|
|
2,559.3
|
|
|
75.4
|
|
|
75.0
|
|
|
8,182.1
|
|
|
7,527.0
|
|
|
75.6
|
|
|
76.0
|
|
||||
Operating income
|
$
|
898.5
|
|
|
$
|
855.3
|
|
|
24.6
|
%
|
|
25.0
|
%
|
|
$
|
2,645.1
|
|
|
$
|
2,382.5
|
|
|
24.4
|
%
|
|
24.0
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
37.8
|
%
|
|
36.8
|
%
|
|
|
|
|
|
37.6
|
%
|
|
36.8
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||||||
|
|
|
|
|
% of CAP
Net Revenues
|
|
|
|
|
|
% of CAP
Net Revenues
|
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-operated stores
|
$
|
695.4
|
|
|
$
|
588.4
|
|
|
90.5
|
%
|
|
90.1
|
%
|
|
$
|
1,884.0
|
|
|
$
|
1,542.5
|
|
|
89.7
|
%
|
|
88.5
|
%
|
Licensed stores
|
71.6
|
|
|
63.1
|
|
|
9.3
|
|
|
9.7
|
|
|
210.7
|
|
|
197.6
|
|
|
10.0
|
|
|
11.3
|
|
||||
Foodservice and other
|
1.2
|
|
|
1.2
|
|
|
0.2
|
|
|
0.2
|
|
|
4.9
|
|
|
3.5
|
|
|
0.2
|
|
|
0.2
|
|
||||
Total net revenues
|
768.2
|
|
|
652.7
|
|
|
100.0
|
|
|
100.0
|
|
|
2,099.6
|
|
|
1,743.6
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales including occupancy costs
|
331.2
|
|
|
281.8
|
|
|
43.1
|
|
|
43.2
|
|
|
933.5
|
|
|
784.8
|
|
|
44.5
|
|
|
45.0
|
|
||||
Store operating expenses
|
200.4
|
|
|
161.2
|
|
|
26.1
|
|
|
24.7
|
|
|
558.0
|
|
|
436.0
|
|
|
26.6
|
|
|
25.0
|
|
||||
Other operating expenses
|
16.2
|
|
|
15.8
|
|
|
2.1
|
|
|
2.4
|
|
|
48.3
|
|
|
43.4
|
|
|
2.3
|
|
|
2.5
|
|
||||
Depreciation and amortization expenses
|
45.7
|
|
|
41.2
|
|
|
5.9
|
|
|
6.3
|
|
|
131.7
|
|
|
106.3
|
|
|
6.3
|
|
|
6.1
|
|
||||
General and administrative expenses
|
32.1
|
|
|
30.3
|
|
|
4.2
|
|
|
4.6
|
|
|
93.2
|
|
|
88.4
|
|
|
4.4
|
|
|
5.1
|
|
||||
Total operating expenses
|
625.6
|
|
|
530.3
|
|
|
81.4
|
|
|
81.2
|
|
|
1,764.7
|
|
|
1,458.9
|
|
|
84.0
|
|
|
83.7
|
|
||||
Income from equity investees
|
40.2
|
|
|
27.6
|
|
|
5.2
|
|
|
4.2
|
|
|
104.3
|
|
|
85.8
|
|
|
5.0
|
|
|
4.9
|
|
||||
Operating income
|
$
|
182.8
|
|
|
$
|
150.0
|
|
|
23.8
|
%
|
|
23.0
|
%
|
|
$
|
439.2
|
|
|
$
|
370.5
|
|
|
20.9
|
%
|
|
21.2
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
28.8
|
%
|
|
27.4
|
%
|
|
|
|
|
|
29.6
|
%
|
|
28.3
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||||||
|
|
|
|
|
% of EMEA
Net Revenues
|
|
|
|
|
|
% of EMEA
Net Revenues
|
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-operated stores
|
$
|
174.3
|
|
|
$
|
217.8
|
|
|
63.8
|
%
|
|
73.9
|
%
|
|
$
|
576.0
|
|
|
$
|
688.0
|
|
|
67.4
|
%
|
|
75.7
|
%
|
Licensed stores
|
86.2
|
|
|
65.5
|
|
|
31.5
|
|
|
22.2
|
|
|
239.3
|
|
|
185.4
|
|
|
28.0
|
|
|
20.4
|
|
||||
Foodservice
|
12.9
|
|
|
11.4
|
|
|
4.7
|
|
|
3.9
|
|
|
39.4
|
|
|
35.0
|
|
|
4.6
|
|
|
3.9
|
|
||||
Total net revenues
|
273.4
|
|
|
294.7
|
|
|
100.0
|
|
|
100.0
|
|
|
854.7
|
|
|
908.4
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales including occupancy costs
|
139.2
|
|
|
143.1
|
|
|
50.9
|
|
|
48.6
|
|
|
427.2
|
|
|
434.4
|
|
|
50.0
|
|
|
47.8
|
|
||||
Store operating expenses
|
69.0
|
|
|
78.4
|
|
|
25.2
|
|
|
26.6
|
|
|
209.4
|
|
|
240.4
|
|
|
24.5
|
|
|
26.5
|
|
||||
Other operating expenses
|
13.4
|
|
|
12.9
|
|
|
4.9
|
|
|
4.4
|
|
|
42.0
|
|
|
40.0
|
|
|
4.9
|
|
|
4.4
|
|
||||
Depreciation and amortization expenses
|
10.3
|
|
|
12.4
|
|
|
3.8
|
|
|
4.2
|
|
|
32.4
|
|
|
38.9
|
|
|
3.8
|
|
|
4.3
|
|
||||
General and administrative expenses
|
11.6
|
|
|
12.8
|
|
|
4.2
|
|
|
4.3
|
|
|
39.4
|
|
|
41.6
|
|
|
4.6
|
|
|
4.6
|
|
||||
Total operating expenses
|
243.5
|
|
|
259.6
|
|
|
89.1
|
|
|
88.1
|
|
|
750.4
|
|
|
795.3
|
|
|
87.8
|
|
|
87.5
|
|
||||
Income from equity investees
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.3
|
|
|
1.5
|
|
|
2.1
|
|
|
0.2
|
|
|
0.2
|
|
||||
Operating income
|
$
|
29.9
|
|
|
$
|
36.0
|
|
|
10.9
|
%
|
|
12.2
|
%
|
|
$
|
105.8
|
|
|
$
|
115.2
|
|
|
12.4
|
%
|
|
12.7
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
39.6
|
%
|
|
36.0
|
%
|
|
|
|
|
|
36.4
|
%
|
|
34.9
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||||||||
|
|
|
|
|
% of Channel
Development Net Revenues |
|
|
|
|
|
% of Channel
Development
Net Revenues
|
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CPG
|
$
|
333.0
|
|
|
$
|
302.2
|
|
|
75.5
|
%
|
|
74.9
|
%
|
|
$
|
1,086.5
|
|
|
$
|
975.8
|
|
|
76.8
|
%
|
|
76.6
|
%
|
Foodservice
|
107.8
|
|
|
101.4
|
|
|
24.5
|
|
|
25.1
|
|
|
327.5
|
|
|
298.4
|
|
|
23.2
|
|
|
23.4
|
|
||||
Total net revenues
|
440.8
|
|
|
403.6
|
|
|
100.0
|
|
|
100.0
|
|
|
1,414.0
|
|
|
1,274.2
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales
|
232.3
|
|
|
228.3
|
|
|
52.7
|
|
|
56.6
|
|
|
770.6
|
|
|
722.2
|
|
|
54.5
|
|
|
56.7
|
|
||||
Other operating expenses
|
58.0
|
|
|
58.9
|
|
|
13.2
|
|
|
14.6
|
|
|
171.8
|
|
|
160.9
|
|
|
12.1
|
|
|
12.6
|
|
||||
Depreciation and amortization expenses
|
0.7
|
|
|
0.7
|
|
|
0.2
|
|
|
0.2
|
|
|
2.1
|
|
|
2.0
|
|
|
0.1
|
|
|
0.2
|
|
||||
General and administrative expenses
|
4.3
|
|
|
4.1
|
|
|
1.0
|
|
|
1.0
|
|
|
13.0
|
|
|
12.5
|
|
|
0.9
|
|
|
1.0
|
|
||||
Total operating expenses
|
295.3
|
|
|
292.0
|
|
|
67.0
|
|
|
72.3
|
|
|
957.5
|
|
|
897.6
|
|
|
67.7
|
|
|
70.4
|
|
||||
Income from equity investees
|
42.3
|
|
|
31.8
|
|
|
9.6
|
|
|
7.9
|
|
|
106.5
|
|
|
80.1
|
|
|
7.5
|
|
|
6.3
|
|
||||
Operating income
|
$
|
187.8
|
|
|
$
|
143.4
|
|
|
42.6
|
%
|
|
35.5
|
%
|
|
$
|
563.0
|
|
|
$
|
456.7
|
|
|
39.8
|
%
|
|
35.8
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
%
Change
|
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
%
Change
|
||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company-operated stores
|
$
|
42.9
|
|
|
$
|
47.5
|
|
|
(9.7
|
)%
|
|
$
|
179.1
|
|
|
$
|
189.7
|
|
|
(5.6
|
)%
|
Licensed stores
|
0.8
|
|
|
1.7
|
|
|
(52.9
|
)
|
|
3.0
|
|
|
4.5
|
|
|
(33.3
|
)
|
||||
CPG, foodservice and other
|
66.4
|
|
|
66.4
|
|
|
—
|
|
|
227.1
|
|
|
218.0
|
|
|
4.2
|
|
||||
Total net revenues
|
110.1
|
|
|
115.6
|
|
|
(4.8
|
)
|
|
409.2
|
|
|
$
|
412.2
|
|
|
(0.7
|
)
|
|||
Cost of sales including occupancy costs
|
68.3
|
|
|
72.7
|
|
|
(6.1
|
)
|
|
246.7
|
|
|
242.5
|
|
|
1.7
|
|
||||
Store operating expenses
|
23.9
|
|
|
26.1
|
|
|
(8.4
|
)
|
|
85.0
|
|
|
80.0
|
|
|
6.3
|
|
||||
Other operating expenses
|
24.3
|
|
|
17.3
|
|
|
40.5
|
|
|
75.3
|
|
|
57.1
|
|
|
31.9
|
|
||||
Depreciation and amortization expenses
|
3.1
|
|
|
4.3
|
|
|
(27.9
|
)
|
|
10.1
|
|
|
12.2
|
|
|
(17.2
|
)
|
||||
General and administrative expenses
|
5.4
|
|
|
8.3
|
|
|
(34.9
|
)
|
|
20.2
|
|
|
27.2
|
|
|
(25.7
|
)
|
||||
Total operating expenses
|
125.0
|
|
|
128.7
|
|
|
(2.9
|
)
|
|
437.3
|
|
|
419.0
|
|
|
4.4
|
|
||||
Operating loss
|
$
|
(14.9
|
)
|
|
$
|
(13.1
|
)
|
|
13.7
|
%
|
|
$
|
(28.1
|
)
|
|
$
|
(6.8
|
)
|
|
313.2%
|
|
Net stores opened/(closed) and
transferred during the period
|
|
|
|
|
||||||||||||
|
Quarter Ended
|
|
Three Quarters Ended
|
|
Stores open as of
|
||||||||||||
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
|
Jun 26,
2016 |
|
Jun 28,
2015 |
||||||
Americas
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
85
|
|
|
68
|
|
|
204
|
|
|
187
|
|
|
8,875
|
|
|
8,582
|
|
Licensed stores
|
109
|
|
|
103
|
|
|
293
|
|
|
192
|
|
|
6,425
|
|
|
5,988
|
|
Total Americas
|
194
|
|
|
171
|
|
|
497
|
|
|
379
|
|
|
15,300
|
|
|
14,570
|
|
China/Asia Pacific
(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
79
|
|
|
82
|
|
|
223
|
|
|
1,219
|
|
|
2,675
|
|
|
2,351
|
|
Licensed stores
|
130
|
|
|
123
|
|
|
442
|
|
|
(604
|
)
|
|
3,452
|
|
|
2,888
|
|
Total China/Asia Pacific
|
209
|
|
|
205
|
|
|
665
|
|
|
615
|
|
|
6,127
|
|
|
5,239
|
|
EMEA
(3)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(147
|
)
|
|
(9
|
)
|
|
(196
|
)
|
|
(33
|
)
|
|
541
|
|
|
784
|
|
Licensed stores
|
224
|
|
|
67
|
|
|
399
|
|
|
184
|
|
|
2,024
|
|
|
1,507
|
|
Total EMEA
|
77
|
|
|
58
|
|
|
203
|
|
|
151
|
|
|
2,565
|
|
|
2,291
|
|
All Other Segments
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(5
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
9
|
|
|
365
|
|
|
378
|
|
Licensed stores
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
38
|
|
|
41
|
|
Total All Other Segments
|
(6
|
)
|
|
(3
|
)
|
|
(13
|
)
|
|
8
|
|
|
403
|
|
|
419
|
|
Total Company
|
474
|
|
|
431
|
|
|
1,352
|
|
|
1,153
|
|
|
24,395
|
|
|
22,519
|
|
(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.
|
(3)
|
EMEA store data includes the transfer of 144 Germany company-operated retail stores to licensed stores as a result of the sale to AmRest Holdings SE in the third quarter of fiscal 2016.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
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 (3) |
|||||
Period
(1)
|
|
|
|
|
|
|
|
|
|||||
March 28, 2016 — April 24, 2016
|
|
50,000
|
|
|
$
|
57.49
|
|
|
50,000
|
|
|
125,172,058
|
|
April 25, 2016 — May 22, 2016
|
|
52,750
|
|
|
56.42
|
|
|
52,750
|
|
|
125,119,308
|
|
|
May 23, 2016 — June 26, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125,119,308
|
|
|
Total
|
|
102,750
|
|
|
$
|
56.94
|
|
|
102,750
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the
third
quarter of fiscal
2016
.
|
(2)
|
Share repurchases are conducted under our ongoing share repurchase program announced in September 2001, which has no expiration date.
|
(3)
|
This column includes the total number of shares authorized for repurchase under the Company's ongoing share repurchase program and includes the additional
100 million
shares authorized for repurchase as announced on
April 21, 2016
. Shares under our ongoing share repurchase program may be repurchased in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, or through privately negotiated transactions. The timing, manner, price and amount of repurchases will be determined at the Company's discretion and the share repurchase program may be suspended, terminated or modified at any time for any reason.
|
Item 6.
|
Exhibits
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||||||
Exhibit
No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of
Filing
|
|
Exhibit Number
|
|
Filed
Herewith
|
|||||
3.1
|
|
Restated Articles of Incorporation of Starbucks Corporation
|
|
10-Q
|
|
0-20322
|
|
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
|
|
Fifth Supplemental Indenture, dated as of February 4, 2016, by and between Starbucks Corporation and Deutsche Bank Trust Company Americas, as trustee (2.100% Senior Notes due February 4, 2021)
|
|
8-K
|
|
0-20322
|
|
2/4/2016
|
|
4.2
|
|
|
|||||
4.2
|
|
Form of 2.100% Senior Notes due February 4, 2021
|
|
8-K
|
|
0-20322
|
|
2/4/2016
|
|
4.3
|
|
|
|||||
4.3
|
|
Sixth Supplemental Indenture, dated as of May 16, 2016, by and between Starbucks Corporation and Deutsche Bank Trust Company Americas, as trustee (2.450% Senior Notes due June 15, 2026)
|
|
8-K
|
|
0-20322
|
|
5/16/2016
|
|
4.4
|
|
|
|||||
4.4
|
|
Form of 2.450% Senior Notes due June 15, 2026
|
|
8-K
|
|
0-20322
|
|
5/16/2016
|
|
4.5
|
|
|
|||||
31.1
|
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||
31.2
|
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||
32*
|
|
Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||
101
|
|
The following financial statements from the Company's 10-Q for the fiscal quarter ended June 26, 2016, formatted in XBRL: (i) Condensed Consolidated Statements of Earnings, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
STARBUCKS CORPORATION
|
||
|
|
|
|
|
By:
|
|
/s/ Scott Maw
|
|
|
|
Scott Maw
|
|
|
|
executive vice president, chief financial officer
|
|
|
|
Signing on behalf of the registrant and as
principal financial officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended
June 26, 2016
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 Quarterly Report on Form 10-Q for the fiscal quarter ended
June 26, 2016
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
|