Washington
|
91-1325671
|
(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
|
¨
|
|
|
|
|
Emerging growth company
|
¨
|
|
|
Title
|
Shares Outstanding as of July 26, 2017
|
Common Stock, par value $0.001 per share
|
1,443.9 million
|
|
|
|
PART I. FINANCIAL INFORMATION
|
||
|
|
|
Item 1
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
|
||
PART II. OTHER INFORMATION
|
||
|
|
|
Item 1
|
||
Item 1A
|
||
Item 2
|
||
Item 6
|
||
Item 1.
|
Financial Statements
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||||
Company-operated stores
|
$
|
4,509.0
|
|
|
$
|
4,181.6
|
|
|
$
|
13,173.7
|
|
|
$
|
12,336.3
|
|
Licensed stores
|
588.3
|
|
|
527.2
|
|
|
1,737.4
|
|
|
1,561.0
|
|
||||
CPG, foodservice and other
|
564.2
|
|
|
529.2
|
|
|
1,777.4
|
|
|
1,707.4
|
|
||||
Total net revenues
|
5,661.5
|
|
|
5,238.0
|
|
|
16,688.5
|
|
|
15,604.7
|
|
||||
Cost of sales including occupancy costs
|
2,249.1
|
|
|
2,060.3
|
|
|
6,685.3
|
|
|
6,256.9
|
|
||||
Store operating expenses
|
1,628.9
|
|
|
1,529.4
|
|
|
4,853.5
|
|
|
4,502.0
|
|
||||
Other operating expenses
|
142.5
|
|
|
137.5
|
|
|
422.7
|
|
|
423.3
|
|
||||
Depreciation and amortization expenses
|
252.6
|
|
|
247.6
|
|
|
756.0
|
|
|
730.9
|
|
||||
General and administrative expenses
|
325.0
|
|
|
323.4
|
|
|
1,008.2
|
|
|
959.4
|
|
||||
Goodwill and other asset impairments
|
120.2
|
|
|
—
|
|
|
120.2
|
|
|
—
|
|
||||
Total operating expenses
|
4,718.3
|
|
|
4,298.2
|
|
|
13,845.9
|
|
|
12,872.5
|
|
||||
Income from equity investees
|
101.0
|
|
|
82.5
|
|
|
269.5
|
|
|
212.3
|
|
||||
Operating income
|
1,044.2
|
|
|
1,022.3
|
|
|
3,112.1
|
|
|
2,944.5
|
|
||||
Interest income and other, net
|
31.7
|
|
|
72.9
|
|
|
123.7
|
|
|
95.5
|
|
||||
Interest expense
|
(23.5
|
)
|
|
(21.8
|
)
|
|
(70.2
|
)
|
|
(56.6
|
)
|
||||
Earnings before income taxes
|
1,052.4
|
|
|
1,073.4
|
|
|
3,165.6
|
|
|
2,983.4
|
|
||||
Income tax expense
|
361.1
|
|
|
318.9
|
|
|
1,070.1
|
|
|
966.2
|
|
||||
Net earnings including noncontrolling interests
|
691.3
|
|
|
754.5
|
|
|
2,095.5
|
|
|
2,017.2
|
|
||||
Net earnings/(loss) attributable to noncontrolling interests
|
(0.3
|
)
|
|
0.4
|
|
|
(0.6
|
)
|
|
0.4
|
|
||||
Net earnings attributable to Starbucks
|
$
|
691.6
|
|
|
$
|
754.1
|
|
|
$
|
2,096.1
|
|
|
$
|
2,016.8
|
|
Earnings per share - basic
|
$
|
0.48
|
|
|
$
|
0.51
|
|
|
$
|
1.44
|
|
|
$
|
1.37
|
|
Earnings per share - diluted
|
$
|
0.47
|
|
|
$
|
0.51
|
|
|
$
|
1.43
|
|
|
$
|
1.35
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,447.7
|
|
|
1,465.3
|
|
|
1,452.8
|
|
|
1,474.4
|
|
||||
Diluted
|
1,459.4
|
|
|
1,479.3
|
|
|
1,464.9
|
|
|
1,489.7
|
|
||||
Cash dividends declared per share
|
$
|
0.25
|
|
|
$
|
0.20
|
|
|
$
|
0.75
|
|
|
$
|
0.60
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||
Net earnings including noncontrolling interests
|
$
|
691.3
|
|
|
$
|
754.5
|
|
|
$
|
2,095.5
|
|
|
$
|
2,017.2
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
1.6
|
|
|
(4.1
|
)
|
|
(9.9
|
)
|
|
0.7
|
|
||||
Tax (expense)/benefit
|
(0.6
|
)
|
|
1.5
|
|
|
3.0
|
|
|
(0.3
|
)
|
||||
Unrealized gains/(losses) on cash flow hedging instruments
|
(15.2
|
)
|
|
(48.4
|
)
|
|
64.8
|
|
|
(110.7
|
)
|
||||
Tax (expense)/benefit
|
2.5
|
|
|
12.8
|
|
|
(16.3
|
)
|
|
27.5
|
|
||||
Unrealized gains/(losses) on net investment hedging instruments
|
2.7
|
|
|
—
|
|
|
18.6
|
|
|
—
|
|
||||
Tax (expense)/benefit
|
(1.0
|
)
|
|
—
|
|
|
(6.9
|
)
|
|
—
|
|
||||
Translation adjustment and other
|
38.0
|
|
|
49.8
|
|
|
(75.2
|
)
|
|
79.8
|
|
||||
Tax (expense)/benefit
|
(1.8
|
)
|
|
4.9
|
|
|
(0.9
|
)
|
|
11.5
|
|
||||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment
|
(6.4
|
)
|
|
53.8
|
|
|
(67.9
|
)
|
|
73.3
|
|
||||
Tax expense/(benefit)
|
1.5
|
|
|
(9.7
|
)
|
|
14.0
|
|
|
(11.0
|
)
|
||||
Other comprehensive income/(loss)
|
21.3
|
|
|
60.6
|
|
|
(76.7
|
)
|
|
70.8
|
|
||||
Comprehensive income including noncontrolling interests
|
712.6
|
|
|
815.1
|
|
|
2,018.8
|
|
|
2,088.0
|
|
||||
Comprehensive income/(loss) attributable to noncontrolling interests
|
(0.3
|
)
|
|
0.4
|
|
|
(0.6
|
)
|
|
0.4
|
|
||||
Comprehensive income attributable to Starbucks
|
$
|
712.9
|
|
|
$
|
814.7
|
|
|
$
|
2,019.4
|
|
|
$
|
2,087.6
|
|
|
Jul 2,
2017 |
|
Oct 2,
2016 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,716.2
|
|
|
$
|
2,128.8
|
|
Short-term investments
|
289.9
|
|
|
134.4
|
|
||
Accounts receivable, net
|
791.1
|
|
|
768.8
|
|
||
Inventories
|
1,357.3
|
|
|
1,378.5
|
|
||
Prepaid expenses and other current assets
|
354.8
|
|
|
347.4
|
|
||
Total current assets
|
5,509.3
|
|
|
4,757.9
|
|
||
Long-term investments
|
708.3
|
|
|
1,141.7
|
|
||
Equity and cost investments
|
430.2
|
|
|
354.5
|
|
||
Property, plant and equipment, net
|
4,699.8
|
|
|
4,533.8
|
|
||
Deferred income taxes, net
|
805.9
|
|
|
885.4
|
|
||
Other long-term assets
|
365.3
|
|
|
403.3
|
|
||
Other intangible assets
|
454.8
|
|
|
516.3
|
|
||
Goodwill
|
1,549.1
|
|
|
1,719.6
|
|
||
TOTAL ASSETS
|
$
|
14,522.7
|
|
|
$
|
14,312.5
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
702.2
|
|
|
$
|
730.6
|
|
Accrued liabilities
|
1,770.6
|
|
|
1,999.1
|
|
||
Insurance reserves
|
211.5
|
|
|
246.0
|
|
||
Stored value card liability
|
1,342.2
|
|
|
1,171.2
|
|
||
Current portion of long-term debt
|
—
|
|
|
399.9
|
|
||
Total current liabilities
|
4,026.5
|
|
|
4,546.8
|
|
||
Long-term debt
|
3,935.5
|
|
|
3,185.3
|
|
||
Other long-term liabilities
|
711.2
|
|
|
689.7
|
|
||
Total liabilities
|
8,673.2
|
|
|
8,421.8
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,445.7 and 1,460.5 shares, respectively
|
1.4
|
|
|
1.5
|
|
||
Additional paid-in capital
|
41.1
|
|
|
41.1
|
|
||
Retained earnings
|
5,986.0
|
|
|
5,949.8
|
|
||
Accumulated other comprehensive loss
|
(185.1
|
)
|
|
(108.4
|
)
|
||
Total shareholders’ equity
|
5,843.4
|
|
|
5,884.0
|
|
||
Noncontrolling interests
|
6.1
|
|
|
6.7
|
|
||
Total equity
|
5,849.5
|
|
|
5,890.7
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
14,522.7
|
|
|
$
|
14,312.5
|
|
|
Three Quarters Ended
|
||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
2,095.5
|
|
|
$
|
2,017.2
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
796.4
|
|
|
768.2
|
|
||
Deferred income taxes, net
|
75.1
|
|
|
344.7
|
|
||
Income earned from equity method investees
|
(210.1
|
)
|
|
(165.5
|
)
|
||
Distributions received from equity method investees
|
133.2
|
|
|
139.4
|
|
||
Gain resulting from sale of equity in joint venture and certain retail operations
|
(9.6
|
)
|
|
(30.7
|
)
|
||
Stock-based compensation
|
148.7
|
|
|
158.4
|
|
||
Excess tax benefit on share-based awards
|
(69.4
|
)
|
|
(110.9
|
)
|
||
Goodwill impairments
|
87.2
|
|
|
—
|
|
||
Other
|
28.2
|
|
|
40.8
|
|
||
Cash provided by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(40.1
|
)
|
|
(39.5
|
)
|
||
Inventories
|
19.1
|
|
|
(15.7
|
)
|
||
Accounts payable
|
(18.3
|
)
|
|
(3.7
|
)
|
||
Stored value card liability
|
178.3
|
|
|
223.5
|
|
||
Other operating assets and liabilities
|
(124.6
|
)
|
|
(59.3
|
)
|
||
Net cash provided by operating activities
|
3,089.6
|
|
|
3,266.9
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of investments
|
(592.5
|
)
|
|
(1,022.7
|
)
|
||
Sales of investments
|
831.7
|
|
|
409.6
|
|
||
Maturities and calls of investments
|
61.7
|
|
|
11.8
|
|
||
Additions to property, plant and equipment
|
(1,025.3
|
)
|
|
(1,029.7
|
)
|
||
Net proceeds from sale of equity in joint venture and certain retail operations
|
—
|
|
|
69.6
|
|
||
Other
|
54.9
|
|
|
3.3
|
|
||
Net cash used by investing activities
|
(669.5
|
)
|
|
(1,558.1
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
750.2
|
|
|
1,254.5
|
|
||
Principal payments on long-term debt
|
(400.0
|
)
|
|
—
|
|
||
Proceeds from issuance of common stock
|
131.5
|
|
|
120.9
|
|
||
Excess tax benefit on share-based awards
|
69.4
|
|
|
110.9
|
|
||
Cash dividends paid
|
(1,089.8
|
)
|
|
(884.8
|
)
|
||
Repurchase of common stock
|
(1,214.1
|
)
|
|
(1,590.4
|
)
|
||
Minimum tax withholdings on share-based awards
|
(71.5
|
)
|
|
(105.3
|
)
|
||
Other
|
1.5
|
|
|
0.1
|
|
||
Net cash used by financing activities
|
(1,822.8
|
)
|
|
(1,094.1
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(9.9
|
)
|
|
(3.0
|
)
|
||
Net increase in cash and cash equivalents
|
587.4
|
|
|
611.7
|
|
||
CASH AND CASH EQUIVALENTS:
|
|
|
|
||||
Beginning of period
|
2,128.8
|
|
|
1,530.1
|
|
||
End of period
|
$
|
2,716.2
|
|
|
$
|
2,141.8
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest, net of capitalized interest
|
$
|
87.3
|
|
|
$
|
68.3
|
|
Income taxes, net of refunds
|
$
|
1,084.6
|
|
|
$
|
669.8
|
|
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 1:
|
Summary of Significant Accounting Policies
|
Note 2:
|
Acquisitions and Divestitures
|
Note 3:
|
Derivative Financial Instruments
|
|
Net Gains/(Losses)
Included in AOCI
|
|
Net Gains Expected to be Reclassified from AOCI into Earnings within 12 Months
|
|
Outstanding Contract/Debt Remaining Maturity
(Months)
|
||||||||
|
Jul 2,
2017 |
|
Oct 2,
2016 |
|
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rates
|
$
|
18.2
|
|
|
$
|
20.5
|
|
|
$
|
3.0
|
|
|
0
|
Cross-currency swaps
|
(5.5
|
)
|
|
(7.7
|
)
|
|
—
|
|
|
89
|
|||
Foreign currency - other
|
0.7
|
|
|
(0.4
|
)
|
|
2.0
|
|
|
35
|
|||
Coffee
|
(10.2
|
)
|
|
(1.6
|
)
|
|
(10.2
|
)
|
|
7
|
|||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
19.1
|
|
|
1.3
|
|
|
—
|
|
|
0
|
|||
Foreign currency debt
|
(6.1
|
)
|
|
—
|
|
|
—
|
|
|
82
|
|
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
|
||||||||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rates
|
$
|
—
|
|
|
$
|
(2.0
|
)
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
(10.3
|
)
|
|
$
|
3.6
|
|
|
$
|
4.0
|
|
Cross-currency swaps
|
5.9
|
|
|
(28.0
|
)
|
|
1.6
|
|
|
(57.6
|
)
|
|
58.5
|
|
|
(72.9
|
)
|
|
55.8
|
|
|
(95.8
|
)
|
||||||||
Foreign currency - other
|
(10.6
|
)
|
|
(19.1
|
)
|
|
4.2
|
|
|
2.2
|
|
|
15.9
|
|
|
(27.9
|
)
|
|
12.2
|
|
|
18.5
|
|
||||||||
Coffee
|
(10.7
|
)
|
|
0.8
|
|
|
0.7
|
|
|
(0.5
|
)
|
|
(9.8
|
)
|
|
0.4
|
|
|
(0.3
|
)
|
|
(1.1
|
)
|
||||||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Foreign currency debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||||||||||
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jul 2, 2017
|
|
Jun 26, 2016
|
|
Jul 2, 2017
|
|
Jun 26, 2016
|
||||||||
Non-Designated Derivatives:
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
$
|
6.6
|
|
|
$
|
(7.1
|
)
|
|
$
|
10.0
|
|
|
$
|
(9.0
|
)
|
Dairy
|
(0.6
|
)
|
|
2.9
|
|
|
2.2
|
|
|
(4.1
|
)
|
||||
Diesel fuel and other commodities
|
(1.4
|
)
|
|
3.8
|
|
|
(0.9
|
)
|
|
(0.4
|
)
|
||||
Designated Fair Value Hedging Instruments:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
Jul 2, 2017
|
|
Oct 2, 2016
|
||||
Interest rate swap
|
$
|
750
|
|
|
$
|
—
|
|
Cross-currency swaps
|
$
|
536
|
|
|
$
|
660
|
|
Foreign currency - other
|
1,298
|
|
|
688
|
|
||
Coffee
|
55
|
|
|
7
|
|
||
Dairy
|
36
|
|
|
76
|
|
||
Diesel fuel and other commodities
|
39
|
|
|
46
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
Jul 2, 2017
|
|
Oct 2, 2016
|
|
Jul 2, 2017
|
|
Oct 2, 2016
|
||||||||
Designated Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency swaps
|
$
|
11.9
|
|
|
$
|
—
|
|
|
$
|
10.4
|
|
|
$
|
57.0
|
|
Foreign currency - other
|
11.7
|
|
|
20.8
|
|
|
11.5
|
|
|
24.0
|
|
||||
Coffee
|
—
|
|
|
1.8
|
|
|
6.2
|
|
|
—
|
|
||||
Net investment hedges
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swap
|
—
|
|
|
—
|
|
|
4.7
|
|
|
—
|
|
||||
Non-designated Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
23.0
|
|
|
6.2
|
|
|
5.3
|
|
|
6.5
|
|
||||
Dairy
|
—
|
|
|
1.5
|
|
|
0.8
|
|
|
1.6
|
|
||||
Diesel fuel and other commodities
|
0.1
|
|
|
3.8
|
|
|
1.7
|
|
|
0.5
|
|
Note 4:
|
Fair Value Measurements
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Jul 2, 2017 |
|
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
|
$
|
2,716.2
|
|
|
$
|
2,716.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
3.3
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
||||
Commercial paper
|
14.9
|
|
|
—
|
|
|
14.9
|
|
|
—
|
|
||||
Corporate debt securities
|
71.7
|
|
|
—
|
|
|
71.7
|
|
|
—
|
|
||||
Foreign government obligations
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
||||
U.S. government treasury securities
|
97.0
|
|
|
97.0
|
|
|
—
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
12.1
|
|
|
—
|
|
|
12.1
|
|
|
—
|
|
||||
Certificates of deposit
|
12.3
|
|
|
—
|
|
|
12.3
|
|
|
—
|
|
||||
Total available-for-sale securities
|
216.4
|
|
|
97.0
|
|
|
119.4
|
|
|
—
|
|
||||
Trading securities
|
73.5
|
|
|
73.5
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
289.9
|
|
|
170.5
|
|
|
119.4
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
20.9
|
|
|
—
|
|
|
20.9
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
28.2
|
|
|
—
|
|
|
28.2
|
|
|
—
|
|
||||
Corporate debt securities
|
284.6
|
|
|
—
|
|
|
284.6
|
|
|
—
|
|
||||
Auction rate securities
|
5.8
|
|
|
—
|
|
|
—
|
|
|
5.8
|
|
||||
Foreign government obligations
|
37.7
|
|
|
—
|
|
|
37.7
|
|
|
—
|
|
||||
U.S. government treasury securities
|
151.3
|
|
|
151.3
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
7.4
|
|
|
—
|
|
|
7.4
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
193.3
|
|
|
—
|
|
|
193.3
|
|
|
—
|
|
||||
Total long-term investments
|
708.3
|
|
|
151.3
|
|
|
551.2
|
|
|
5.8
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
26.2
|
|
|
—
|
|
|
26.2
|
|
|
—
|
|
||||
Total assets
|
$
|
3,761.5
|
|
|
$
|
3,038.0
|
|
|
$
|
717.7
|
|
|
$
|
5.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
20.7
|
|
|
$
|
6.8
|
|
|
$
|
13.9
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
19.9
|
|
|
—
|
|
|
19.9
|
|
|
—
|
|
||||
Total liabilities
|
$
|
40.6
|
|
|
$
|
6.8
|
|
|
$
|
33.8
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Oct 2, 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
|
$
|
2,128.8
|
|
|
$
|
2,128.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||
Commercial paper
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
||||
Corporate debt securities
|
34.2
|
|
|
—
|
|
|
34.2
|
|
|
—
|
|
||||
Foreign government obligations
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
||||
U.S. government treasury securities
|
15.8
|
|
|
15.8
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Certificates of deposit
|
5.8
|
|
|
—
|
|
|
5.8
|
|
|
—
|
|
||||
Total available-for-sale securities
|
65.7
|
|
|
15.8
|
|
|
49.9
|
|
|
—
|
|
||||
Trading securities
|
68.7
|
|
|
68.7
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
134.4
|
|
|
84.5
|
|
|
49.9
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
27.7
|
|
|
3.1
|
|
|
24.6
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
44.4
|
|
|
—
|
|
|
44.4
|
|
|
—
|
|
||||
Corporate debt securities
|
459.3
|
|
|
—
|
|
|
459.3
|
|
|
—
|
|
||||
Auction rate securities
|
5.7
|
|
|
—
|
|
|
—
|
|
|
5.7
|
|
||||
Foreign government obligations
|
46.7
|
|
|
—
|
|
|
46.7
|
|
|
—
|
|
||||
U.S. government treasury securities
|
358.2
|
|
|
358.2
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
57.5
|
|
|
—
|
|
|
57.5
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
169.9
|
|
|
—
|
|
|
169.9
|
|
|
—
|
|
||||
Total long-term investments
|
1,141.7
|
|
|
358.2
|
|
|
777.8
|
|
|
5.7
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
6.4
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
||||
Total assets
|
$
|
3,439.0
|
|
|
$
|
2,574.6
|
|
|
$
|
858.7
|
|
|
$
|
5.7
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
18.0
|
|
|
$
|
1.7
|
|
|
$
|
16.3
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
71.6
|
|
|
—
|
|
|
71.6
|
|
|
—
|
|
||||
Total
|
$
|
89.6
|
|
|
$
|
1.7
|
|
|
$
|
87.9
|
|
|
$
|
—
|
|
Note 5:
|
Inventories
(in millions)
|
|
Jul 2, 2017
|
|
Oct 2, 2016
|
|
Jun 26, 2016
|
||||||
Coffee:
|
|
|
|
|
|
||||||
Unroasted
|
$
|
614.7
|
|
|
$
|
561.6
|
|
|
$
|
625.2
|
|
Roasted
|
258.4
|
|
|
300.4
|
|
|
269.8
|
|
|||
Other merchandise held for sale
|
261.3
|
|
|
308.6
|
|
|
243.7
|
|
|||
Packaging and other supplies
|
222.9
|
|
|
207.9
|
|
|
186.4
|
|
|||
Total
|
$
|
1,357.3
|
|
|
$
|
1,378.5
|
|
|
$
|
1,325.1
|
|
Note 6:
|
Supplemental Balance Sheet Information
(in millions)
|
|
Jul 2, 2017
|
|
Oct 2, 2016
|
||||
Land
|
$
|
46.8
|
|
|
$
|
46.6
|
|
Buildings
|
475.7
|
|
|
458.4
|
|
||
Leasehold improvements
|
6,200.2
|
|
|
5,892.9
|
|
||
Store equipment
|
2,059.1
|
|
|
1,931.7
|
|
||
Roasting equipment
|
612.6
|
|
|
605.4
|
|
||
Furniture, fixtures and other
|
1,477.3
|
|
|
1,366.9
|
|
||
Work in progress
|
362.2
|
|
|
271.4
|
|
||
Property, plant and equipment, gross
|
11,233.9
|
|
|
10,573.3
|
|
||
Accumulated depreciation
|
(6,534.1
|
)
|
|
(6,039.5
|
)
|
||
Property, plant and equipment, net
|
$
|
4,699.8
|
|
|
$
|
4,533.8
|
|
|
Jul 2, 2017
|
|
Oct 2, 2016
|
||||
Accrued compensation and related costs
|
$
|
501.0
|
|
|
$
|
510.8
|
|
Accrued occupancy costs
|
141.0
|
|
|
137.5
|
|
||
Accrued taxes
|
171.6
|
|
|
368.4
|
|
||
Accrued dividends payable
|
361.4
|
|
|
365.1
|
|
||
Accrued capital and other operating expenditures
|
595.6
|
|
|
617.3
|
|
||
Total accrued liabilities
|
$
|
1,770.6
|
|
|
$
|
1,999.1
|
|
Note 7:
|
Debt
|
|
Jul 2, 2017
|
|
Oct 2, 2016
|
|
Stated Interest Rate
|
Effective Interest Rate
(1)
|
||||||||||||
Issuance
|
Amount
|
Estimated Fair Value
|
|
Amount
|
Estimated Fair Value
|
|
||||||||||||
2016 notes
|
$
|
—
|
|
$
|
—
|
|
|
$
|
400.0
|
|
$
|
400
|
|
|
0.875
|
%
|
0.941
|
%
|
2018 notes
|
350.0
|
|
352
|
|
|
350.0
|
|
357
|
|
|
2.000
|
%
|
2.012
|
%
|
||||
2021 notes
|
500.0
|
|
503
|
|
|
500.0
|
|
511
|
|
|
2.100
|
%
|
2.293
|
%
|
||||
2021 notes
|
250.0
|
|
251
|
|
|
250.0
|
|
255
|
|
|
2.100
|
%
|
1.600
|
%
|
||||
2022 notes
|
500.0
|
|
510
|
|
|
500.0
|
|
526
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
2023 notes
|
750.0
|
|
807
|
|
|
750.0
|
|
839
|
|
|
3.850
|
%
|
2.860
|
%
|
||||
2024 notes
(2)
|
758.3
|
|
762
|
|
|
—
|
|
—
|
|
|
0.372
|
%
|
0.462
|
%
|
||||
2026 notes
|
500.0
|
|
482
|
|
|
500.0
|
|
509
|
|
|
2.450
|
%
|
2.511
|
%
|
||||
2045 notes
|
350.0
|
|
386
|
|
|
350.0
|
|
417
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
Total
|
3,958.3
|
|
4,053
|
|
|
3,600.0
|
|
3,814
|
|
|
|
|
||||||
Aggregate debt issuance costs and unamortized premium, net
|
(18.0
|
)
|
|
|
(14.8
|
)
|
|
|
|
|
||||||||
Hedge accounting fair value adjustment
(3)
|
(4.8
|
)
|
|
|
—
|
|
|
|
|
|
||||||||
Total
|
$
|
3,935.5
|
|
|
|
$
|
3,585.2
|
|
|
|
|
|
(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.
|
(2)
|
Japanese yen-denominated long-term debt.
|
(3)
|
Amount represents the change in fair value due to changes in benchmark interest rates related to our 2023 notes. Refer to
Note 3
, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.
|
Fiscal Year
|
Total
|
||
2018
|
$
|
—
|
|
2019
|
350.0
|
|
|
2020
|
—
|
|
|
2021
|
750.0
|
|
|
2022
|
500.0
|
|
|
Thereafter
|
2,358.3
|
|
|
Total
|
$
|
3,958.3
|
|
Note 8:
|
Equity
|
|
Three Quarters Ended
|
||||||||||||||||||||||
|
Jul 2, 2017
|
|
Jun 26, 2016
|
||||||||||||||||||||
|
Attributable to Starbucks
|
|
Noncontrolling interests
|
|
Total Equity
|
|
Attributable to Starbucks
|
|
Noncontrolling interest
|
|
Total Equity
|
||||||||||||
Beginning balance of total equity
|
$
|
5,884.0
|
|
|
$
|
6.7
|
|
|
$
|
5,890.7
|
|
|
$
|
5,818.0
|
|
|
$
|
1.8
|
|
|
$
|
5,819.8
|
|
Net earnings including noncontrolling interests
|
2,096.1
|
|
|
(0.6
|
)
|
|
2,095.5
|
|
|
2,016.8
|
|
|
0.4
|
|
|
2,017.2
|
|
||||||
Translation adjustment and other, net of reclassifications and tax
|
(76.1
|
)
|
|
—
|
|
|
(76.1
|
)
|
|
91.3
|
|
|
—
|
|
|
91.3
|
|
||||||
Unrealized gains/(losses), net of reclassifications and tax
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
(20.5
|
)
|
|
—
|
|
|
(20.5
|
)
|
||||||
Other comprehensive income/(loss)
|
(76.7
|
)
|
|
—
|
|
|
(76.7
|
)
|
|
70.8
|
|
|
—
|
|
|
70.8
|
|
||||||
Stock-based compensation expense
|
150.1
|
|
|
—
|
|
|
150.1
|
|
|
159.6
|
|
|
—
|
|
|
159.6
|
|
||||||
Exercise of stock options/vesting of RSUs
|
108.0
|
|
|
—
|
|
|
108.0
|
|
|
115.4
|
|
|
—
|
|
|
115.4
|
|
||||||
Sale of common stock
|
21.6
|
|
|
—
|
|
|
21.6
|
|
|
12.7
|
|
|
—
|
|
|
12.7
|
|
||||||
Repurchase of common stock
|
(1,254.1
|
)
|
|
—
|
|
|
(1,254.1
|
)
|
|
(1,590.4
|
)
|
|
—
|
|
|
(1,590.4
|
)
|
||||||
Cash dividends declared
|
(1,085.6
|
)
|
|
—
|
|
|
(1,085.6
|
)
|
|
(881.1
|
)
|
|
—
|
|
|
(881.1
|
)
|
||||||
Ending balance of total equity
|
$
|
5,843.4
|
|
|
$
|
6.1
|
|
|
$
|
5,849.5
|
|
|
$
|
5,721.8
|
|
|
$
|
2.2
|
|
|
$
|
5,724.0
|
|
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
July 2, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(5.3
|
)
|
|
$
|
21.6
|
|
|
$
|
11.3
|
|
|
$
|
(234.0
|
)
|
|
$
|
(206.4
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
1.0
|
|
|
(12.7
|
)
|
|
1.7
|
|
|
36.2
|
|
|
26.2
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.8
|
|
|
(5.7
|
)
|
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
1.8
|
|
|
(18.4
|
)
|
|
1.7
|
|
|
36.2
|
|
|
21.3
|
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(3.5
|
)
|
|
$
|
3.2
|
|
|
$
|
13.0
|
|
|
$
|
(197.8
|
)
|
|
$
|
(185.1
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
July 2, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
1.1
|
|
|
$
|
10.9
|
|
|
$
|
1.3
|
|
|
$
|
(121.7
|
)
|
|
$
|
(108.4
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
(6.9
|
)
|
|
48.5
|
|
|
11.7
|
|
|
(76.1
|
)
|
|
(22.8
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
2.3
|
|
|
(56.2
|
)
|
|
—
|
|
|
—
|
|
|
(53.9
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(4.6
|
)
|
|
(7.7
|
)
|
|
11.7
|
|
|
(76.1
|
)
|
|
(76.7
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(3.5
|
)
|
|
$
|
3.2
|
|
|
$
|
13.0
|
|
|
$
|
(197.8
|
)
|
|
$
|
(185.1
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
)
|
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||
|
Jul 2, 2017
|
|
Jun 26, 2016
|
|
||||||
Gains/(losses) on available-for-sale securities
|
|
$
|
(1.2
|
)
|
|
$
|
0.9
|
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
||||
Interest rate hedges
|
|
1.2
|
|
|
1.2
|
|
|
Interest expense
|
||
Cross-currency swaps
|
|
1.5
|
|
|
(57.6
|
)
|
|
Interest income and other, net
|
||
Foreign currency hedges
|
|
1.2
|
|
|
0.1
|
|
|
Revenues
|
||
Foreign currency/coffee hedges
|
|
3.7
|
|
|
1.6
|
|
|
Cost of sales including occupancy costs
|
||
|
|
6.4
|
|
|
(53.8
|
)
|
|
Total before tax
|
||
|
|
(1.5
|
)
|
|
9.7
|
|
|
Tax benefit
|
||
|
|
$
|
4.9
|
|
|
$
|
(44.1
|
)
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||
|
Jul 2, 2017
|
|
Jun 26, 2016
|
|
||||||
Gains/(losses) on available-for-sale securities
|
|
$
|
(3.2
|
)
|
|
$
|
1.1
|
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
||||
Interest rate hedges
|
|
3.6
|
|
|
4.0
|
|
|
Interest expense
|
||
Cross-currency swaps
|
|
55.6
|
|
|
(95.8
|
)
|
|
Interest income and other, net
|
||
Foreign currency hedges
|
|
3.7
|
|
|
5.5
|
|
|
Revenues
|
||
Foreign currency/coffee hedges
|
|
8.2
|
|
|
11.9
|
|
|
Cost of sales including occupancy costs
|
||
|
|
67.9
|
|
|
(73.3
|
)
|
|
Total before tax
|
||
|
|
(14.0
|
)
|
|
11.2
|
|
|
Tax (expense)/benefit
|
||
|
|
$
|
53.9
|
|
|
$
|
(62.1
|
)
|
|
Net of tax
|
Note 9:
|
Employee Stock Plans
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jul 2, 2017
|
|
Jun 26, 2016
|
|
Jul 2, 2017
|
|
Jun 26, 2016
|
||||||||
Options
|
$
|
10.1
|
|
|
$
|
9.2
|
|
|
$
|
34.1
|
|
|
$
|
32.2
|
|
Restricted Stock Units (“RSUs”)
|
33.8
|
|
|
40.6
|
|
|
114.7
|
|
|
126.2
|
|
||||
Total stock-based compensation expense
|
$
|
43.9
|
|
|
$
|
49.8
|
|
|
$
|
148.8
|
|
|
$
|
158.4
|
|
|
Stock Options
|
|
RSUs
|
||||
Options outstanding/Nonvested RSUs, October 2, 2016
|
31.3
|
|
|
8.3
|
|
||
Granted
|
7.0
|
|
|
5.0
|
|
||
Options exercised/RSUs vested
|
(4.7
|
)
|
|
(3.8
|
)
|
||
Forfeited/expired
|
(1.5
|
)
|
|
(1.2
|
)
|
||
Options outstanding/Nonvested RSUs, July 2, 2017
|
32.1
|
|
|
8.3
|
|
||
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of July 2, 2017
|
$
|
46.9
|
|
|
$
|
152.0
|
|
Note 10:
|
Earnings per Share
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jul 2, 2017
|
|
Jun 26, 2016
|
|
Jul 2, 2017
|
|
Jun 26, 2016
|
||||||||
Net earnings attributable to Starbucks
|
$
|
691.6
|
|
|
$
|
754.1
|
|
|
$
|
2,096.1
|
|
|
$
|
2,016.8
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,447.7
|
|
|
1,465.3
|
|
|
1,452.8
|
|
|
1,474.4
|
|
||||
Dilutive effect of outstanding common stock options and RSUs
|
11.7
|
|
|
14.0
|
|
|
12.1
|
|
|
15.3
|
|
||||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,459.4
|
|
|
1,479.3
|
|
|
1,464.9
|
|
|
1,489.7
|
|
||||
EPS — basic
|
$
|
0.48
|
|
|
$
|
0.51
|
|
|
$
|
1.44
|
|
|
$
|
1.37
|
|
EPS — diluted
|
$
|
0.47
|
|
|
$
|
0.51
|
|
|
$
|
1.43
|
|
|
$
|
1.35
|
|
Note 11:
|
Segment Reporting
|
|
Americas
|
|
China/
Asia Pacific
|
|
EMEA
(1)
|
|
Channel
Development
|
|
All Other Segments
(1)
|
|
Segment
Total
|
||||||||||||
July 2, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
3,991.9
|
|
|
$
|
840.6
|
|
|
$
|
249.9
|
|
|
$
|
478.7
|
|
|
$
|
100.4
|
|
|
$
|
5,661.5
|
|
Depreciation and amortization expenses
|
152.8
|
|
|
51.0
|
|
|
7.7
|
|
|
0.5
|
|
|
3.0
|
|
|
215.0
|
|
||||||
Income from equity investees
|
—
|
|
|
51.8
|
|
|
—
|
|
|
49.2
|
|
|
—
|
|
|
101.0
|
|
||||||
Operating income/(loss)
|
974.8
|
|
|
223.8
|
|
|
9.8
|
|
|
210.2
|
|
|
(112.3
|
)
|
|
1,306.3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
Americas
|
|
China/
Asia Pacific
|
|
EMEA
(1)
|
|
Channel
Development
|
|
All Other Segments
(1)
|
|
Segment
Total
|
||||||||||||
July 2, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
11,703.7
|
|
|
$
|
2,380.3
|
|
|
$
|
743.9
|
|
|
$
|
1,493.6
|
|
|
$
|
367.0
|
|
|
$
|
16,688.5
|
|
Depreciation and amortization expenses
|
460.6
|
|
|
148.9
|
|
|
22.9
|
|
|
1.7
|
|
|
9.3
|
|
|
643.4
|
|
||||||
Income from equity investees
|
—
|
|
|
138.4
|
|
|
—
|
|
|
131.1
|
|
|
—
|
|
|
269.5
|
|
||||||
Operating income/(loss)
|
2,759.4
|
|
|
563.2
|
|
|
81.5
|
|
|
646.5
|
|
|
(127.9
|
)
|
|
3,922.7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jul 2, 2017
|
|
Jun 26, 2016
|
|
Jul 2, 2017
|
|
Jun 26, 2016
|
||||||||
Total segment operating income
|
$
|
1,306.3
|
|
|
$
|
1,284.1
|
|
|
$
|
3,922.7
|
|
|
$
|
3,725.0
|
|
Unallocated corporate operating expenses
|
(262.1
|
)
|
|
(261.8
|
)
|
|
(810.6
|
)
|
|
(780.5
|
)
|
||||
Consolidated operating income
|
1,044.2
|
|
|
1,022.3
|
|
|
3,112.1
|
|
|
2,944.5
|
|
||||
Interest income and other, net
|
31.7
|
|
|
72.9
|
|
|
123.7
|
|
|
95.5
|
|
||||
Interest expense
|
(23.5
|
)
|
|
(21.8
|
)
|
|
(70.2
|
)
|
|
(56.6
|
)
|
||||
Earnings before income taxes
|
$
|
1,052.4
|
|
|
$
|
1,073.4
|
|
|
$
|
3,165.6
|
|
|
$
|
2,983.4
|
|
Note 12:
|
Subsequent Event
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Quarter Ended Jul 2, 2017
|
|
Three Quarters Ended Jul 2, 2017
|
||||||||
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
Consolidated
|
4%
|
|
—%
|
|
4%
|
|
3%
|
|
(1)%
|
|
4%
|
Americas
|
5%
|
|
—%
|
|
5%
|
|
4%
|
|
(1)%
|
|
4%
|
China/Asia Pacific
|
1%
|
|
—%
|
|
1%
|
|
3%
|
|
1%
|
|
2%
|
EMEA
(1)
|
2%
|
|
—%
|
|
2%
|
|
—%
|
|
(1)%
|
|
1%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
%
Change
|
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
%
Change
|
||||||||||
Company-operated stores
|
$
|
4,509.0
|
|
|
$
|
4,181.6
|
|
|
7.8
|
%
|
|
$
|
13,173.7
|
|
|
$
|
12,336.3
|
|
|
6.8
|
%
|
Licensed stores
|
588.3
|
|
|
527.2
|
|
|
11.6
|
|
|
1,737.4
|
|
|
1,561.0
|
|
|
11.3
|
|
||||
CPG, foodservice and other
|
564.2
|
|
|
529.2
|
|
|
6.6
|
|
|
1,777.4
|
|
|
1,707.4
|
|
|
4.1
|
|
||||
Total net revenues
|
$
|
5,661.5
|
|
|
$
|
5,238.0
|
|
|
8.1
|
%
|
|
$
|
16,688.5
|
|
|
$
|
15,604.7
|
|
|
6.9
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||||||||||
Cost of sales including occupancy costs
|
$
|
2,249.1
|
|
|
$
|
2,060.3
|
|
|
39.7
|
%
|
|
39.3
|
%
|
|
$
|
6,685.3
|
|
|
$
|
6,256.9
|
|
|
40.1
|
%
|
|
40.1
|
%
|
Store operating expenses
|
1,628.9
|
|
|
1,529.4
|
|
|
28.8
|
|
|
29.2
|
|
|
4,853.5
|
|
|
4,502.0
|
|
|
29.1
|
|
|
28.9
|
|
||||
Other operating expenses
|
142.5
|
|
|
137.5
|
|
|
2.5
|
|
|
2.6
|
|
|
422.7
|
|
|
423.3
|
|
|
2.5
|
|
|
2.7
|
|
||||
Depreciation and amortization expenses
|
252.6
|
|
|
247.6
|
|
|
4.5
|
|
|
4.7
|
|
|
756.0
|
|
|
730.9
|
|
|
4.5
|
|
|
4.7
|
|
||||
General and administrative expenses
|
325.0
|
|
|
323.4
|
|
|
5.7
|
|
|
6.2
|
|
|
1,008.2
|
|
|
959.4
|
|
|
6.0
|
|
|
6.1
|
|
||||
Goodwill and other asset impairments
|
120.2
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
120.2
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
||||
Total operating expenses
|
4,718.3
|
|
|
4,298.2
|
|
|
83.3
|
|
|
82.1
|
|
|
13,845.9
|
|
|
12,872.5
|
|
|
83.0
|
|
|
82.5
|
|
||||
Income from equity investees
|
101.0
|
|
|
82.5
|
|
|
1.8
|
|
|
1.6
|
|
|
269.5
|
|
|
212.3
|
|
|
1.6
|
|
|
1.4
|
|
||||
Operating income
|
$
|
1,044.2
|
|
|
$
|
1,022.3
|
|
|
18.4
|
%
|
|
19.5
|
%
|
|
$
|
3,112.1
|
|
|
$
|
2,944.5
|
|
|
18.6
|
%
|
|
18.9
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
36.1
|
%
|
|
36.6
|
%
|
|
|
|
|
|
36.8
|
%
|
|
36.5
|
%
|
||||||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
12.4
|
%
|
|
13.0
|
%
|
|
|
|
|
|
12.0
|
%
|
|
13.0
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
|
|
|
|
|
As a % of Total
Net Revenues |
||||||||||||||||
Operating income
|
$
|
1,044.2
|
|
|
$
|
1,022.3
|
|
|
18.4
|
%
|
|
19.5
|
%
|
|
$
|
3,112.1
|
|
|
$
|
2,944.5
|
|
|
18.6
|
%
|
|
18.9
|
%
|
Interest income and other, net
|
31.7
|
|
|
72.9
|
|
|
0.6
|
|
|
1.4
|
|
|
123.7
|
|
|
95.5
|
|
|
0.7
|
|
|
0.6
|
|
||||
Interest expense
|
(23.5
|
)
|
|
(21.8
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(70.2
|
)
|
|
(56.6
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
Earnings before income taxes
|
1,052.4
|
|
|
1,073.4
|
|
|
18.6
|
|
|
20.5
|
|
|
3,165.6
|
|
|
2,983.4
|
|
|
19.0
|
|
|
19.1
|
|
||||
Income tax expense
|
361.1
|
|
|
318.9
|
|
|
6.4
|
|
|
6.1
|
|
|
1,070.1
|
|
|
966.2
|
|
|
6.4
|
|
|
6.2
|
|
||||
Net earnings including noncontrolling interests
|
691.3
|
|
|
754.5
|
|
|
12.2
|
|
|
14.4
|
|
|
2,095.5
|
|
|
2,017.2
|
|
|
12.6
|
|
|
12.9
|
|
||||
Net earnings/(loss) attributable to noncontrolling interests
|
(0.3
|
)
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
0.4
|
|
|
—
|
|
|
—
|
|
||||
Net earnings attributable to Starbucks
|
$
|
691.6
|
|
|
$
|
754.1
|
|
|
12.2
|
%
|
|
14.4
|
%
|
|
$
|
2,096.1
|
|
|
$
|
2,016.8
|
|
|
12.6
|
%
|
|
12.9
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
34.3
|
%
|
|
29.7
|
%
|
|
|
|
|
|
33.8
|
%
|
|
32.4
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-operated stores
|
$
|
3,576.4
|
|
|
$
|
3,269.0
|
|
|
89.6
|
%
|
|
89.7
|
%
|
|
$
|
10,472.3
|
|
|
$
|
9,697.2
|
|
|
89.5
|
%
|
|
89.6
|
%
|
Licensed stores
|
404.5
|
|
|
368.6
|
|
|
10.1
|
|
|
10.1
|
|
|
1,202.5
|
|
|
1,108.0
|
|
|
10.3
|
|
|
10.2
|
|
||||
Foodservice and other
|
11.0
|
|
|
7.9
|
|
|
0.3
|
|
|
0.2
|
|
|
28.9
|
|
|
22.0
|
|
|
0.2
|
|
|
0.2
|
|
||||
Total net revenues
|
3,991.9
|
|
|
3,645.5
|
|
|
100.0
|
|
|
100.0
|
|
|
11,703.7
|
|
|
10,827.2
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales including occupancy costs
|
1,441.7
|
|
|
1,289.0
|
|
|
36.1
|
|
|
35.4
|
|
|
4,236.9
|
|
|
3,865.9
|
|
|
36.2
|
|
|
35.7
|
|
||||
Store operating expenses
|
1,338.8
|
|
|
1,236.1
|
|
|
33.5
|
|
|
33.9
|
|
|
3,994.3
|
|
|
3,649.6
|
|
|
34.1
|
|
|
33.7
|
|
||||
Other operating expenses
|
33.1
|
|
|
25.4
|
|
|
0.8
|
|
|
0.7
|
|
|
96.5
|
|
|
85.7
|
|
|
0.8
|
|
|
0.8
|
|
||||
Depreciation and amortization expenses
|
152.8
|
|
|
149.2
|
|
|
3.8
|
|
|
4.1
|
|
|
460.6
|
|
|
441.6
|
|
|
3.9
|
|
|
4.1
|
|
||||
General and administrative expenses
|
50.7
|
|
|
47.3
|
|
|
1.3
|
|
|
1.3
|
|
|
156.0
|
|
|
139.3
|
|
|
1.3
|
|
|
1.3
|
|
||||
Total operating expenses
|
3,017.1
|
|
|
2,747.0
|
|
|
75.6
|
|
|
75.4
|
|
|
8,944.3
|
|
|
8,182.1
|
|
|
76.4
|
|
|
75.6
|
|
||||
Operating income
|
$
|
974.8
|
|
|
$
|
898.5
|
|
|
24.4
|
%
|
|
24.6
|
%
|
|
$
|
2,759.4
|
|
|
$
|
2,645.1
|
|
|
23.6
|
%
|
|
24.4
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
37.4
|
%
|
|
37.8
|
%
|
|
|
|
|
|
38.1
|
%
|
|
37.6
|
%
|
||||||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
8.0
|
%
|
|
6.7
|
%
|
|
|
|
|
|
7.8
|
%
|
|
7.6
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||||||
|
|
|
|
|
As a % of CAP
Total Net Revenues
|
|
|
|
|
|
As a % of CAP
Total Net Revenues
|
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-operated stores
|
$
|
756.8
|
|
|
$
|
695.4
|
|
|
90.0
|
%
|
|
90.5
|
%
|
|
$
|
2,136.1
|
|
|
$
|
1,884.0
|
|
|
89.7
|
%
|
|
89.7
|
%
|
Licensed stores
|
82.3
|
|
|
71.6
|
|
|
9.8
|
|
|
9.3
|
|
|
238.7
|
|
|
210.7
|
|
|
10.0
|
|
|
10.0
|
|
||||
Foodservice and other
|
1.5
|
|
|
1.2
|
|
|
0.2
|
|
|
0.2
|
|
|
5.5
|
|
|
4.9
|
|
|
0.2
|
|
|
0.2
|
|
||||
Total net revenues
|
840.6
|
|
|
768.2
|
|
|
100.0
|
|
|
100.0
|
|
|
2,380.3
|
|
|
2,099.6
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales including occupancy costs
|
353.5
|
|
|
331.2
|
|
|
42.1
|
|
|
43.1
|
|
|
1,024.3
|
|
|
933.5
|
|
|
43.0
|
|
|
44.5
|
|
||||
Store operating expenses
|
212.1
|
|
|
200.4
|
|
|
25.2
|
|
|
26.1
|
|
|
618.9
|
|
|
558.0
|
|
|
26.0
|
|
|
26.6
|
|
||||
Other operating expenses
|
17.5
|
|
|
16.2
|
|
|
2.1
|
|
|
2.1
|
|
|
54.2
|
|
|
48.3
|
|
|
2.3
|
|
|
2.3
|
|
||||
Depreciation and amortization expenses
|
51.0
|
|
|
45.7
|
|
|
6.1
|
|
|
5.9
|
|
|
148.9
|
|
|
131.7
|
|
|
6.3
|
|
|
6.3
|
|
||||
General and administrative expenses
|
34.5
|
|
|
32.1
|
|
|
4.1
|
|
|
4.2
|
|
|
109.2
|
|
|
93.2
|
|
|
4.6
|
|
|
4.4
|
|
||||
Total operating expenses
|
668.6
|
|
|
625.6
|
|
|
79.5
|
|
|
81.4
|
|
|
1,955.5
|
|
|
1,764.7
|
|
|
82.2
|
|
|
84.0
|
|
||||
Income from equity investees
|
51.8
|
|
|
40.2
|
|
|
6.2
|
|
|
5.2
|
|
|
138.4
|
|
|
104.3
|
|
|
5.8
|
|
|
5.0
|
|
||||
Operating income
|
$
|
223.8
|
|
|
$
|
182.8
|
|
|
26.6
|
%
|
|
23.8
|
%
|
|
$
|
563.2
|
|
|
$
|
439.2
|
|
|
23.7
|
%
|
|
20.9
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
28.0
|
%
|
|
28.8
|
%
|
|
|
|
|
|
29.0
|
%
|
|
29.6
|
%
|
||||||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
20.9
|
%
|
|
22.3
|
%
|
|
|
|
|
|
22.2
|
%
|
|
22.4
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||||||
|
|
|
|
|
As a % of EMEA
Total Net Revenues
|
|
|
|
|
|
As a % of EMEA
Total Net Revenues
|
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company-operated stores
|
$
|
136.2
|
|
|
$
|
174.3
|
|
|
54.5
|
%
|
|
63.8
|
%
|
|
$
|
409.6
|
|
|
$
|
576.0
|
|
|
55.1
|
%
|
|
67.4
|
%
|
Licensed stores
|
100.9
|
|
|
86.2
|
|
|
40.4
|
|
|
31.5
|
|
|
294.0
|
|
|
239.3
|
|
|
39.5
|
|
|
28.0
|
|
||||
Foodservice
|
12.8
|
|
|
12.9
|
|
|
5.1
|
|
|
4.7
|
|
|
40.3
|
|
|
39.4
|
|
|
5.4
|
|
|
4.6
|
|
||||
Total net revenues
|
249.9
|
|
|
273.4
|
|
|
100.0
|
|
|
100.0
|
|
|
743.9
|
|
|
854.7
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales including occupancy costs
|
134.0
|
|
|
139.2
|
|
|
53.6
|
|
|
50.9
|
|
|
392.6
|
|
|
427.2
|
|
|
52.8
|
|
|
50.0
|
|
||||
Store operating expenses
|
53.8
|
|
|
69.0
|
|
|
21.5
|
|
|
25.2
|
|
|
151.0
|
|
|
209.4
|
|
|
20.3
|
|
|
24.5
|
|
||||
Other operating expenses
|
15.1
|
|
|
13.4
|
|
|
6.0
|
|
|
4.9
|
|
|
45.3
|
|
|
42.0
|
|
|
6.1
|
|
|
4.9
|
|
||||
Depreciation and amortization expenses
|
7.7
|
|
|
10.3
|
|
|
3.1
|
|
|
3.8
|
|
|
22.9
|
|
|
32.4
|
|
|
3.1
|
|
|
3.8
|
|
||||
General and administrative expenses
|
11.6
|
|
|
11.6
|
|
|
4.6
|
|
|
4.2
|
|
|
32.7
|
|
|
39.4
|
|
|
4.4
|
|
|
4.6
|
|
||||
Goodwill and other asset impairments
|
17.9
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
|
17.9
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
||||
Total operating expenses
|
240.1
|
|
|
243.5
|
|
|
96.1
|
|
|
89.1
|
|
|
662.4
|
|
|
750.4
|
|
|
89.0
|
|
|
87.8
|
|
||||
Income from equity investees
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
0.2
|
|
||||
Operating income
|
$
|
9.8
|
|
|
$
|
29.9
|
|
|
3.9
|
%
|
|
10.9
|
%
|
|
$
|
81.5
|
|
|
$
|
105.8
|
|
|
11.0
|
%
|
|
12.4
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
39.5
|
%
|
|
39.6
|
%
|
|
|
|
|
|
36.9
|
%
|
|
36.4
|
%
|
||||||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
13.3
|
%
|
|
13.5
|
%
|
|
|
|
|
|
13.6
|
%
|
|
15.1
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CPG
|
$
|
364.3
|
|
|
$
|
333.0
|
|
|
76.1
|
%
|
|
75.5
|
%
|
|
$
|
1,147.6
|
|
|
$
|
1,086.5
|
|
|
76.8
|
%
|
|
76.8
|
%
|
Foodservice
|
114.4
|
|
|
107.8
|
|
|
23.9
|
|
|
24.5
|
|
|
346.0
|
|
|
327.5
|
|
|
23.2
|
|
|
23.2
|
|
||||
Total net revenues
|
478.7
|
|
|
440.8
|
|
|
100.0
|
|
|
100.0
|
|
|
1,493.6
|
|
|
1,414.0
|
|
|
100.0
|
|
|
100.0
|
|
||||
Cost of sales
|
252.5
|
|
|
232.3
|
|
|
52.7
|
|
|
52.7
|
|
|
795.5
|
|
|
770.6
|
|
|
53.3
|
|
|
54.5
|
|
||||
Other operating expenses
|
62.0
|
|
|
58.0
|
|
|
13.0
|
|
|
13.2
|
|
|
172.9
|
|
|
171.8
|
|
|
11.6
|
|
|
12.1
|
|
||||
Depreciation and amortization expenses
|
0.5
|
|
|
0.7
|
|
|
0.1
|
|
|
0.2
|
|
|
1.7
|
|
|
2.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
General and administrative expenses
|
2.7
|
|
|
4.3
|
|
|
0.6
|
|
|
1.0
|
|
|
8.1
|
|
|
13.0
|
|
|
0.5
|
|
|
0.9
|
|
||||
Total operating expenses
|
317.7
|
|
|
295.3
|
|
|
66.4
|
|
|
67.0
|
|
|
978.2
|
|
|
957.5
|
|
|
65.5
|
|
|
67.7
|
|
||||
Income from equity investees
|
49.2
|
|
|
42.3
|
|
|
10.3
|
|
|
9.6
|
|
|
131.1
|
|
|
106.5
|
|
|
8.8
|
|
|
7.5
|
|
||||
Operating income
|
$
|
210.2
|
|
|
$
|
187.8
|
|
|
43.9
|
%
|
|
42.6
|
%
|
|
$
|
646.5
|
|
|
$
|
563.0
|
|
|
43.3
|
%
|
|
39.8
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
%
Change
|
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
%
Change
|
||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company-operated stores
|
$
|
39.6
|
|
|
$
|
42.9
|
|
|
(7.7
|
)%
|
|
$
|
155.7
|
|
|
$
|
179.1
|
|
|
(13.1
|
)%
|
Licensed stores
|
0.6
|
|
|
0.8
|
|
|
(25.0
|
)
|
|
2.2
|
|
|
3.0
|
|
|
(26.7
|
)
|
||||
CPG, foodservice and other
|
60.2
|
|
|
66.4
|
|
|
(9.3
|
)
|
|
209.1
|
|
|
227.1
|
|
|
(7.9
|
)
|
||||
Total net revenues
|
100.4
|
|
|
110.1
|
|
|
(8.8
|
)
|
|
367.0
|
|
|
$
|
409.2
|
|
|
(10.3
|
)
|
|||
Cost of sales including occupancy costs
|
64.8
|
|
|
68.3
|
|
|
(5.1
|
)
|
|
229.5
|
|
|
246.7
|
|
|
(7.0
|
)
|
||||
Store operating expenses
|
24.2
|
|
|
23.9
|
|
|
1.3
|
|
|
89.3
|
|
|
85.0
|
|
|
5.1
|
|
||||
Other operating expenses
|
14.6
|
|
|
24.3
|
|
|
(39.9
|
)
|
|
52.8
|
|
|
75.3
|
|
|
(29.9
|
)
|
||||
Depreciation and amortization expenses
|
3.0
|
|
|
3.1
|
|
|
(3.2
|
)
|
|
9.3
|
|
|
10.1
|
|
|
(7.9
|
)
|
||||
General and administrative expenses
|
3.8
|
|
|
5.4
|
|
|
(29.6
|
)
|
|
11.7
|
|
|
20.2
|
|
|
(42.1
|
)
|
||||
Goodwill and other asset impairments
|
102.3
|
|
|
—
|
|
|
nm
|
|
|
102.3
|
|
|
—
|
|
|
nm
|
|
||||
Total operating expenses
|
212.7
|
|
|
125.0
|
|
|
70.2
|
|
|
494.9
|
|
|
437.3
|
|
|
13.2
|
|
||||
Operating loss
|
$
|
(112.3
|
)
|
|
$
|
(14.9
|
)
|
|
653.7
|
%
|
|
$
|
(127.9
|
)
|
|
$
|
(28.1
|
)
|
|
355.2
|
%
|
|
Net stores opened/(closed) and
transferred during the period
|
|
|
|
|
||||||||||||
|
Quarter Ended
|
|
Three Quarters Ended
|
|
Stores open as of
|
||||||||||||
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
|
Jul 2,
2017 |
|
Jun 26,
2016 |
||||||
Americas
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
125
|
|
|
85
|
|
|
282
|
|
|
204
|
|
|
9,301
|
|
|
8,875
|
|
Licensed stores
|
119
|
|
|
109
|
|
|
413
|
|
|
293
|
|
|
7,001
|
|
|
6,425
|
|
Total Americas
|
244
|
|
|
194
|
|
|
695
|
|
|
497
|
|
|
16,302
|
|
|
15,300
|
|
China/Asia Pacific
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
116
|
|
|
79
|
|
|
287
|
|
|
223
|
|
|
3,098
|
|
|
2,675
|
|
Licensed stores
|
134
|
|
|
130
|
|
|
453
|
|
|
442
|
|
|
4,085
|
|
|
3,452
|
|
Total China/Asia Pacific
|
250
|
|
|
209
|
|
|
740
|
|
|
665
|
|
|
7,183
|
|
|
6,127
|
|
EMEA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
1
|
|
|
(147
|
)
|
|
(17
|
)
|
|
(196
|
)
|
|
506
|
|
|
541
|
|
Licensed stores
|
86
|
|
|
224
|
|
|
245
|
|
|
399
|
|
|
2,364
|
|
|
2,024
|
|
Total EMEA
|
87
|
|
|
77
|
|
|
228
|
|
|
203
|
|
|
2,870
|
|
|
2,565
|
|
All Other Segments
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(5
|
)
|
|
(5
|
)
|
|
(14
|
)
|
|
(10
|
)
|
|
344
|
|
|
365
|
|
Licensed stores
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
(3
|
)
|
|
37
|
|
|
38
|
|
Total All Other Segments
|
(6
|
)
|
|
(6
|
)
|
|
(12
|
)
|
|
(13
|
)
|
|
381
|
|
|
403
|
|
Total Company
|
575
|
|
|
474
|
|
|
1,651
|
|
|
1,352
|
|
|
26,736
|
|
|
24,395
|
|
(1)
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 |
|||||
Period
(1)
|
|
|
|
|
|
|
|
|
|||||
April 3, 2017 — April 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
98,865,460
|
|
May 1, 2017 — May 28, 2017
|
|
783,613
|
|
|
60.25
|
|
|
783,613
|
|
|
98,081,847
|
|
|
May 29, 2017 — July 2, 2017
|
|
2,674,919
|
|
|
60.11
|
|
|
2,674,919
|
|
|
95,406,928
|
|
|
Total
|
|
3,458,532
|
|
|
$
|
60.14
|
|
|
3,458,532
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the
third
quarter of fiscal
2017
.
|
(2)
|
Share repurchases are conducted under our ongoing share repurchase program announced in September 2001, which has no expiration date.
|
Item 6.
|
Exhibits
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||||||
Exhibit
No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of
Filing
|
|
Exhibit Number
|
|
Filed
Herewith
|
|||||
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
3.1
|
|
|
|||||||
|
|
8-K
|
|
0-20322
|
|
9/16/2016
|
|
3.1
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||||
101
|
|
The following financial statements from the Company's 10-Q for the fiscal quarter ended July 2, 2017, 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
July 2, 2017
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/ Kevin R. Johnson
|
|
|
Kevin R. Johnson
|
|
|
president and chief executive officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended
July 2, 2017
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/ Kevin R. Johnson
|
|
|
Kevin R. Johnson
|
|
|
president and chief executive officer
|
|
|
/s/ Scott Maw
|
|
|
Scott Maw
|
|
|
executive vice president, chief financial officer
|