Washington
|
|
91-1325671
|
(State of Incorporation)
|
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(IRS Employer ID)
|
Title of Each Class
|
|
Name of Each Exchange on Which Registered
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Common Stock, $0.001 par value per share
|
|
Nasdaq Global Select Market
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Large accelerated filer
|
x
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Accelerated filer
|
¨
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Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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|
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Emerging growth company
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¨
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PART I
|
||
Item 1
|
||
Item 1A
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||
Item 1B
|
||
Item 2
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||
Item 3
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||
Item 4
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||
PART II
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||
Item 5
|
||
Item 6
|
||
Item 7
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Item 7A
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||
Item 8
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||
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||
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Item 9
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||
Item 9A
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||
Item 9B
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PART III
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Item 10
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Item 11
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Item 12
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||
Item 13
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Item 14
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PART IV
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Item 15
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||
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Americas
|
|
As a% of
Total
Americas Stores
|
|
CAP
|
|
As a% of
Total CAP Stores |
|
EMEA
|
|
As a% of
Total
EMEA Stores
|
|
All Other Segments
|
|
As a% of
Total
All Other Segments Stores
|
|
Total
|
|
As a% of
Total
Stores
|
||||||||||
Company-operated stores
|
9,413
|
|
|
57
|
%
|
|
3,070
|
|
|
41
|
%
|
|
502
|
|
|
17
|
%
|
|
290
|
|
|
89
|
%
|
|
13,275
|
|
|
49
|
%
|
Licensed stores
|
7,146
|
|
|
43
|
%
|
|
4,409
|
|
|
59
|
%
|
|
2,472
|
|
|
83
|
%
|
|
37
|
|
|
11
|
%
|
|
14,064
|
|
|
51
|
%
|
Total
|
16,559
|
|
|
100
|
%
|
|
7,479
|
|
|
100
|
%
|
|
2,974
|
|
|
100
|
%
|
|
327
|
|
|
100
|
%
|
|
27,339
|
|
|
100
|
%
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Oct 2, 2016
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Oct 1, 2017
|
||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
7,880
|
|
|
372
|
|
|
(30
|
)
|
|
—
|
|
|
342
|
|
|
8,222
|
|
Canada
|
1,035
|
|
|
45
|
|
|
(8
|
)
|
|
11
|
|
|
48
|
|
|
1,083
|
|
Brazil
|
104
|
|
|
5
|
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
108
|
|
Total Americas
|
9,019
|
|
|
422
|
|
|
(39
|
)
|
|
11
|
|
|
394
|
|
|
9,413
|
|
China/Asia Pacific
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
China
|
1,272
|
|
|
285
|
|
|
(17
|
)
|
|
—
|
|
|
268
|
|
|
1,540
|
|
Japan
|
1,140
|
|
|
90
|
|
|
(12
|
)
|
|
—
|
|
|
78
|
|
|
1,218
|
|
Thailand
|
273
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
312
|
|
Singapore
|
126
|
|
|
10
|
|
|
(3
|
)
|
|
(133
|
)
|
|
(126
|
)
|
|
—
|
|
Total China/Asia Pacific
|
2,811
|
|
|
424
|
|
|
(32
|
)
|
|
(133
|
)
|
|
259
|
|
|
3,070
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.K.
|
366
|
|
|
14
|
|
|
(21
|
)
|
|
(14
|
)
|
|
(21
|
)
|
|
345
|
|
All Other
|
157
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
157
|
|
Total EMEA
|
523
|
|
|
16
|
|
|
(23
|
)
|
|
(14
|
)
|
|
(21
|
)
|
|
502
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Teavana
|
355
|
|
|
—
|
|
|
(67
|
)
|
|
—
|
|
|
(67
|
)
|
|
288
|
|
Evolution Fresh
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Siren Retail
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
Total All Other Segments
|
358
|
|
|
1
|
|
|
(69
|
)
|
|
—
|
|
|
(68
|
)
|
|
290
|
|
Total company-operated
|
12,711
|
|
|
863
|
|
|
(163
|
)
|
|
(136
|
)
|
|
564
|
|
|
13,275
|
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|||
Beverages
|
73
|
%
|
|
74
|
%
|
|
73
|
%
|
Food
|
20
|
%
|
|
19
|
%
|
|
19
|
%
|
Packaged and single-serve coffees and teas
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
Other
(1)
|
4
|
%
|
|
4
|
%
|
|
5
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
“Other” primarily consists of sales of serveware, ready-to-drink beverages and coffee-making equipment, among other items.
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Oct 2, 2016
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Oct 1, 2017
|
||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
5,292
|
|
|
477
|
|
|
(61
|
)
|
|
—
|
|
|
416
|
|
|
5,708
|
|
Mexico
|
563
|
|
|
71
|
|
|
(2
|
)
|
|
—
|
|
|
69
|
|
|
632
|
|
Latin America
|
369
|
|
|
66
|
|
|
(6
|
)
|
|
—
|
|
|
60
|
|
|
429
|
|
Canada
|
364
|
|
|
32
|
|
|
(8
|
)
|
|
(11
|
)
|
|
13
|
|
|
377
|
|
Total Americas
|
6,588
|
|
|
646
|
|
|
(77
|
)
|
|
(11
|
)
|
|
558
|
|
|
7,146
|
|
China/Asia Pacific
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
China
|
1,110
|
|
|
310
|
|
|
(24
|
)
|
|
—
|
|
|
286
|
|
|
1,396
|
|
Korea
|
952
|
|
|
164
|
|
|
(8
|
)
|
|
—
|
|
|
156
|
|
|
1,108
|
|
Taiwan
|
392
|
|
|
33
|
|
|
(5
|
)
|
|
—
|
|
|
28
|
|
|
420
|
|
Philippines
|
293
|
|
|
32
|
|
|
(1
|
)
|
|
—
|
|
|
31
|
|
|
324
|
|
Indonesia
|
260
|
|
|
62
|
|
|
(5
|
)
|
|
—
|
|
|
57
|
|
|
317
|
|
Malaysia
|
226
|
|
|
24
|
|
|
(2
|
)
|
|
—
|
|
|
22
|
|
|
248
|
|
All Other
|
399
|
|
|
76
|
|
|
(12
|
)
|
|
133
|
|
|
197
|
|
|
596
|
|
Total China/Asia Pacific
|
3,632
|
|
|
701
|
|
|
(57
|
)
|
|
133
|
|
|
777
|
|
|
4,409
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.K.
|
532
|
|
|
69
|
|
|
(9
|
)
|
|
14
|
|
|
74
|
|
|
606
|
|
Turkey
|
314
|
|
|
80
|
|
|
(7
|
)
|
|
—
|
|
|
73
|
|
|
387
|
|
United Arab Emirates
|
148
|
|
|
21
|
|
|
(5
|
)
|
|
—
|
|
|
16
|
|
|
164
|
|
Germany
|
161
|
|
|
6
|
|
|
(11
|
)
|
|
—
|
|
|
(5
|
)
|
|
156
|
|
Saudi Arabia
|
92
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
124
|
|
Kuwait
|
95
|
|
|
24
|
|
|
(1
|
)
|
|
—
|
|
|
23
|
|
|
118
|
|
Russia
|
107
|
|
|
11
|
|
|
(3
|
)
|
|
—
|
|
|
8
|
|
|
115
|
|
Spain
|
96
|
|
|
23
|
|
|
(6
|
)
|
|
—
|
|
|
17
|
|
|
113
|
|
All Other
|
574
|
|
|
132
|
|
|
(17
|
)
|
|
—
|
|
|
115
|
|
|
689
|
|
Total EMEA
|
2,119
|
|
|
398
|
|
|
(59
|
)
|
|
14
|
|
|
353
|
|
|
2,472
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Teavana
|
34
|
|
|
4
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
37
|
|
Seattle's Best Coffee
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
Total All Other Segments
|
35
|
|
|
4
|
|
|
(2
|
)
|
|
—
|
|
|
2
|
|
|
37
|
|
Total licensed
|
12,374
|
|
|
1,749
|
|
|
(195
|
)
|
|
136
|
|
|
1,690
|
|
|
14,064
|
|
Name
|
|
Age
|
|
Position
|
Howard Schultz
|
|
64
|
|
executive chairman
|
Kevin R. Johnson
|
|
57
|
|
president and chief executive officer
|
Rosalind G. Brewer
|
|
55
|
|
group president, Americas and chief operating officer
|
Cliff Burrows
|
|
58
|
|
group president, Siren Retail
|
John Culver
|
|
57
|
|
group president, International and Channels
(1)
|
Scott Maw
|
|
50
|
|
executive vice president, chief financial officer
|
Paul Mutty
|
|
58
|
|
senior vice president, interim general counsel
|
•
|
Economic conditions in the U.S. and international markets could adversely affect our business and financial results.
|
•
|
Our success depends substantially on the value of our brands and failure to preserve their value, either through our actions or those of our business partners, could have a negative impact on our financial results.
|
•
|
Incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling, whether or not accurate, as well as adverse public or medical opinions about the health effects of consuming our products, could harm our business.
|
•
|
The unauthorized access, use, theft or destruction of customer or employee personal, financial or other data or of Starbucks proprietary or confidential information that is stored in our information systems or by third parties on our behalf could impact our reputation and brand and expose us to potential liability and loss of revenues.
|
•
|
We rely heavily on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our ability to effectively operate our business and could adversely affect our financial results.
|
•
|
We may not be successful in implementing important strategic initiatives or effectively managing growth, which may have an adverse impact on our business and financial results.
|
•
|
being an employer of choice and investing in employees to deliver a superior customer experience;
|
•
|
building our leadership position around coffee, including through the development of Starbucks Reserve™
Roasteries and Starbucks Reserve™ stores;
|
•
|
driving convenience and brand engagement through our mobile, loyalty and digital capabilities;
|
•
|
increasing the scale of the Starbucks store footprint with disciplined global expansion and introducing flexible and unique store formats;
|
•
|
moving to a more licensed store model in some markets and a more company-owned model in other markets;
|
•
|
creating new occasions in stores across all dayparts with new product offerings, including our growing lunch food and beverage product lineup;
|
•
|
continuing the global growth of our Channel Development business; and
|
•
|
delivering continued growth in our tea business through the Teavana brand in our Starbucks
®
retail stores and other channels and internationally.
|
•
|
increases in labor costs, both domestically and internationally, such as general market and minimum wage levels and investing in competitive compensation, increased health care and workers’ compensation insurance costs and other benefits to attract and retain high quality employees with the right skill sets, whether due to regulatory mandates, changing industry practices or our expansion into new channels or technology dependent operations;
|
•
|
increasing competition in channels in which we operate or seek to operate from new and existing large competitors that sell high-quality specialty coffee beverages;
|
•
|
continuing disruption in retail caused by on-line commerce, resulting in reduced foot traffic to “brick & mortar” retail stores;
|
•
|
consumers shifting categories of where they spend their discretionary income away from outside-the-home food and beverage;
|
•
|
construction cost increases associated with new store openings and remodeling of existing stores; delays in store openings for reasons beyond our control or a lack of desirable real estate locations available for lease at reasonable rates, either of which could keep us from meeting annual store opening targets in the U.S. and internationally;
|
•
|
not successfully scaling our supply chain infrastructure as our product offerings increase and as we continue to expand, including our emphasis on a broad range of high-quality food offerings;
|
•
|
the ability of our licensee partners to implement our growth platforms and product innovation;
|
•
|
lack of customer acceptance of new products (including due to price increases necessary to cover the costs of new products or higher input costs), brands (such as the global expansion of the Teavana brand in our Starbucks
®
retail stores and other channels) and platforms (such as mobile technology), or customers reducing their demand for our current offerings as new products are introduced;
|
•
|
the degree to which we enter into, maintain, develop and are able to negotiate appropriate terms and conditions of, and enforce, commercial and other agreements;
|
•
|
not successfully consummating favorable strategic transactions or integrating acquired businesses; and
|
•
|
the deterioration in our credit ratings, which could limit the availability of additional financing and increase the cost of obtaining financing to fund our initiatives.
|
•
|
We face intense competition in each of our channels and markets, which could lead to reduced profitability.
|
•
|
We are highly dependent on the financial performance of our Americas operating segment.
|
•
|
We are increasingly dependent on the success of certain international markets in order to achieve our growth targets.
|
•
|
foreign currency exchange rate fluctuations, or requirements to transact in specific currencies;
|
•
|
changes or uncertainties in economic, legal, regulatory, social and political conditions in our markets, as well as negative effects on U.S. businesses due to increasing anti-American sentiment in certain markets;
|
•
|
interpretation and application of laws and regulations, including tax, labor, merchandise, anti-bribery and privacy laws and regulations;
|
•
|
restrictive actions of foreign or U.S. governmental authorities affecting trade and foreign investment, especially during periods of heightened tension between the U.S. and such foreign governmental authorities, including protective measures such as export and customs duties and tariffs, government intervention favoring local competitors, and restrictions on the level of foreign ownership;
|
•
|
import or other business licensing requirements;
|
•
|
the enforceability of intellectual property and contract rights;
|
•
|
limitations on the repatriation of funds and foreign currency exchange restrictions due to current or new U.S. and international regulations;
|
•
|
in developing economies, the growth rate in the portion of the population achieving sufficient levels of disposable income may not be as fast as we forecast;
|
•
|
difficulty in staffing, developing and managing foreign operations and supply chain logistics, including ensuring the consistency of product quality and service, due to governmental actions affecting supply chain logistics, distance, language and cultural differences, as well as challenges in recruiting and retaining high quality employees in local markets;
|
•
|
local laws that make it more expensive and complex to negotiate with, retain or terminate employees;
|
•
|
delays in store openings for reasons beyond our control, competition with locally relevant competitors or a lack of desirable real estate locations available for lease at reasonable rates, any of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revenues, operating income and earnings per share; and
|
•
|
disruption in energy supplies affecting our markets.
|
•
|
Increases in the cost of high-quality
arabica
coffee beans or other commodities or decreases in the availability of high-quality
arabica
coffee beans or other commodities could have an adverse impact on our business and financial results.
|
•
|
Our financial condition and results of operations are sensitive to, and may be adversely affected by, a number of factors, many of which are largely outside our control.
|
•
|
increases in real estate costs in certain domestic and international markets;
|
•
|
adverse outcomes of litigation;
|
•
|
severe weather or other natural or man-made disasters affecting a large market or several closely located markets that may temporarily but significantly affect our retail business in such markets; and
|
•
|
especially in our larger or fast growing markets, labor discord or disruption, geopolitical events, war, terrorism (including incidents targeting us), political instability, boycotts, increasing anti-American sentiment in certain markets, social unrest, and natural disasters, including health pandemics that lead to avoidance of public places or restrictions on public gatherings such as in our stores.
|
•
|
Interruption of our supply chain could affect our ability to produce or deliver our products and could negatively impact our business and profitability.
|
•
|
Failure to meet market expectations for our financial performance and fluctuations in the stock market as a whole will likely adversely affect the market price and volatility of our stock.
|
•
|
The loss of key personnel or difficulties recruiting and retaining qualified personnel could adversely impact our business and financial results.
|
•
|
Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and financial results.
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Location
|
Approximate Size
in Square Feet |
|
Purpose
|
|
Rancho Cucamonga, CA
|
265,000
|
|
|
Manufacturing
|
Washington, DC
|
130,000
|
|
|
Warehouse and distribution
|
Augusta, GA
|
131,000
|
|
|
Manufacturing
|
Minden, NV (Carson Valley)
|
360,000
|
|
|
Roasting and distribution
|
York, PA
|
2,098,000
|
|
|
Roasting, distribution and warehouse
|
Gaston, SC (Sandy Run)
|
117,000
|
|
|
Roasting and distribution
|
Lebanon, TN
|
680,000
|
|
|
Warehouse and distribution
|
Auburn, WA
|
491,000
|
|
|
Warehouse and distribution
|
Kent, WA
|
510,000
|
|
|
Roasting and distribution
|
Seattle, WA
|
1,241,000
|
|
|
Corporate administrative
|
Shanghai, China
|
121,000
|
|
|
Corporate administrative
|
Amsterdam, Netherlands
|
97,000
|
|
|
Roasting and distribution
|
Samutprakarn, Thailand
|
81,000
|
|
|
Warehouse and distribution
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
|
High
|
|
Low
|
|
Cash Dividends
Declared |
||||||
Fiscal 2017:
|
|
|
|
|
|
||||||
Fourth Quarter
|
$
|
59.66
|
|
|
$
|
52.58
|
|
|
$
|
0.30
|
|
Third Quarter
|
64.87
|
|
|
57.38
|
|
|
0.25
|
|
|||
Second Quarter
|
59.00
|
|
|
53.81
|
|
|
0.25
|
|
|||
First Quarter
|
59.54
|
|
|
50.84
|
|
|
0.25
|
|
|||
Fiscal 2016:
|
|
|
|
|
|
||||||
Fourth Quarter
|
$
|
58.84
|
|
|
$
|
52.90
|
|
|
$
|
0.25
|
|
Third Quarter
|
61.64
|
|
|
54.01
|
|
|
0.20
|
|
|||
Second Quarter
|
61.79
|
|
|
52.63
|
|
|
0.20
|
|
|||
First Quarter
|
64.00
|
|
|
54.81
|
|
|
0.20
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|||||
July 3, 2017 — July 30, 2017
|
|
2,168,233
|
|
|
$
|
58.03
|
|
|
2,168,233
|
|
|
93,238,695
|
|
July 31, 2017 — August 27, 2017
|
|
4,804,970
|
|
|
53.87
|
|
|
4,804,970
|
|
|
88,433,725
|
|
|
August 28, 2017 — October 1, 2017
|
|
8,116,314
|
|
|
54.41
|
|
|
8,116,314
|
|
|
80,317,411
|
|
|
Total
|
|
15,089,517
|
|
|
$
|
54.76
|
|
|
15,089,517
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the fourth quarter of fiscal
2017
.
|
(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 remaining number of shares authorized for repurchase under the Company's ongoing share repurchase program. 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
|
|
Sep 30, 2012
|
|
Sep 29, 2013
|
|
Sep 28, 2014
|
|
Sep 27, 2015
|
|
Oct 2, 2016
|
|
Oct 1, 2017
|
||||||||||||
Starbucks Corporation
|
$
|
100.00
|
|
|
$
|
154.67
|
|
|
$
|
152.47
|
|
|
$
|
238.48
|
|
|
$
|
225.70
|
|
|
$
|
227.92
|
|
S&P 500
|
100.00
|
|
|
119.34
|
|
|
142.89
|
|
|
142.02
|
|
|
163.93
|
|
|
194.44
|
|
||||||
NASDAQ Composite
|
100.00
|
|
|
123.38
|
|
|
148.79
|
|
|
154.52
|
|
|
178.82
|
|
|
220.25
|
|
||||||
S&P Consumer Discretionary
|
100.00
|
|
|
131.84
|
|
|
147.36
|
|
|
166.78
|
|
|
182.85
|
|
|
209.40
|
|
Item 6.
|
Selected Financial Data
|
As of and for the Fiscal Year Ended
(1)
|
Oct 1,
2017 (52 Wks) |
|
Oct 2,
2016 (53 Wks) |
|
Sep 27,
2015 (52 Wks) |
|
Sep 28,
2014 (52 Wks) |
|
Sep 29,
2013 (52 Wks) |
|||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Company-operated stores
|
$
|
17,650.7
|
|
|
$
|
16,844.1
|
|
|
$
|
15,197.3
|
|
|
$
|
12,977.9
|
|
|
$
|
11,793.2
|
|
|
Licensed stores
|
2,355.0
|
|
|
2,154.2
|
|
|
1,861.9
|
|
|
1,588.6
|
|
|
1,360.5
|
|
||||||
CPG, foodservice and other
|
2,381.1
|
|
|
2,317.6
|
|
|
2,103.5
|
|
|
1,881.3
|
|
|
1,713.1
|
|
||||||
Total net revenues
|
$
|
22,386.8
|
|
|
$
|
21,315.9
|
|
|
$
|
19,162.7
|
|
|
$
|
16,447.8
|
|
|
$
|
14,866.8
|
|
|
Operating income/(loss)
(2)
|
$
|
4,134.7
|
|
|
$
|
4,171.9
|
|
|
$
|
3,601.0
|
|
|
$
|
3,081.1
|
|
|
$
|
(325.4
|
)
|
|
Net earnings including noncontrolling interests
(2)
|
2,884.9
|
|
|
2,818.9
|
|
|
2,759.3
|
|
|
2,067.7
|
|
|
8.8
|
|
||||||
Net earnings/(loss) attributable to noncontrolling interests
|
0.2
|
|
|
1.2
|
|
|
1.9
|
|
|
(0.4
|
)
|
|
0.5
|
|
||||||
Net earnings attributable to Starbucks
(2)
|
2,884.7
|
|
|
2,817.7
|
|
|
2,757.4
|
|
|
2,068.1
|
|
|
8.3
|
|
||||||
EPS — diluted
(2)
|
1.97
|
|
|
1.90
|
|
|
1.82
|
|
|
1.35
|
|
|
0.01
|
|
||||||
Cash dividends declared per share
|
1.050
|
|
|
0.850
|
|
|
0.680
|
|
|
0.550
|
|
|
0.445
|
|
||||||
Net cash provided by operating activities
|
4,174.3
|
|
|
4,575.1
|
|
|
3,749.1
|
|
|
607.8
|
|
|
2,908.3
|
|
||||||
Capital expenditures (additions to property, plant and equipment)
|
1,519.4
|
|
|
1,440.3
|
|
|
1,303.7
|
|
|
1,160.9
|
|
|
1,151.2
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets
(3)
|
$
|
14,365.6
|
|
|
$
|
14,312.5
|
|
|
$
|
12,404.1
|
|
|
$
|
10,745.0
|
|
|
$
|
11,509.8
|
|
|
Long-term debt (including current portion)
|
3,932.6
|
|
|
3,585.2
|
|
|
2,335.3
|
|
|
2,041.3
|
|
|
1,293.2
|
|
||||||
Shareholders’ equity
|
5,450.1
|
|
|
5,884.0
|
|
|
5,818.0
|
|
|
5,272.0
|
|
|
4,480.2
|
|
(1)
|
Our fiscal year ends on the Sunday closest to September 30. The fiscal year ended on October 2, 2016 included 53 weeks, with the 53
rd
week falling in our fourth fiscal quarter.
|
(2)
|
Fiscal 2013 results include a pretax charge of
$2,784.1 million
resulting from the conclusion of our arbitration with Kraft Foods Global, Inc. The impact of this charge to net earnings attributable to Starbucks and diluted EPS, net of the related tax benefit, was $1,713.1 million and $1.12 per share, respectively.
|
(3)
|
Total assets for fiscal 2013 through fiscal 2016 have been adjusted for the adoption of new accounting guidance related to the reclassification of debt issuance costs as discussed in
Note 1
, Summary of Significant Accounting Policies.
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||
Percentage change in comparable store sales
(1)
|
|
|
|
|
|
|
|
|
|
||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
3
|
%
|
|
6
|
%
|
|
7
|
%
|
|
6
|
%
|
|
7
|
%
|
|
Change in transactions
|
—
|
%
|
|
1
|
%
|
|
3
|
%
|
|
2
|
%
|
|
5
|
%
|
|
Change in ticket
|
4
|
%
|
|
5
|
%
|
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
|
China/Asia Pacific
(2)
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
3
|
%
|
|
3
|
%
|
|
9
|
%
|
|
7
|
%
|
|
9
|
%
|
|
Change in transactions
|
1
|
%
|
|
1
|
%
|
|
8
|
%
|
|
6
|
%
|
|
7
|
%
|
|
Change in ticket
|
1
|
%
|
|
2
|
%
|
|
1
|
%
|
|
—
|
%
|
|
2
|
%
|
|
EMEA
(3)
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
1
|
%
|
|
—
|
%
|
|
4
|
%
|
|
5
|
%
|
|
—
|
%
|
|
Change in transactions
|
(1
|
)%
|
|
1
|
%
|
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
Change in ticket
|
1
|
%
|
|
—
|
%
|
|
1
|
%
|
|
2
|
%
|
|
(2
|
)%
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
3
|
%
|
|
5
|
%
|
|
7
|
%
|
|
6
|
%
|
|
7
|
%
|
|
Change in transactions
|
—
|
%
|
|
1
|
%
|
|
3
|
%
|
|
3
|
%
|
|
5
|
%
|
|
Change in ticket
|
3
|
%
|
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
(1)
|
Includes only Starbucks
®
company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates. For fiscal year 2016, comparable store sales percentages were calculated excluding the 53
rd
week.
|
(2)
|
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.
|
(3)
|
Company-operated stores represent 17% of the EMEA segment store portfolio as of October 1, 2017.
|
As of and for the Fiscal Year Ended
|
Oct 1,
2017 (52 Wks) |
|
Oct 2,
2016 (53 Wks) |
|
Sep 27,
2015 (52 Wks) |
|
Sep 28,
2014 (52 Wks) |
|
Sep 29,
2013 (52 Wks) |
||||||
Net stores opened/(closed) and transferred during the year:
|
|
|
|
|
|
|
|
|
|
||||||
Americas
(1)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
394
|
|
|
348
|
|
|
276
|
|
|
317
|
|
|
276
|
|
|
Licensed stores
|
558
|
|
|
456
|
|
|
336
|
|
|
381
|
|
|
404
|
|
|
China/Asia Pacific
(2)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
259
|
|
|
359
|
|
|
1,320
|
|
|
250
|
|
|
239
|
|
|
Licensed stores
|
777
|
|
|
622
|
|
|
(482
|
)
|
|
492
|
|
|
349
|
|
|
EMEA
(3)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(21
|
)
|
|
(214
|
)
|
|
(80
|
)
|
|
(9
|
)
|
|
(29
|
)
|
|
Licensed stores
|
353
|
|
|
494
|
|
|
302
|
|
|
180
|
|
|
129
|
|
|
All Other Segments
(4)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(68
|
)
|
|
(17
|
)
|
|
6
|
|
|
12
|
|
|
343
|
|
|
Licensed stores
|
2
|
|
|
(6
|
)
|
|
(1
|
)
|
|
(24
|
)
|
|
(10
|
)
|
|
Total
|
2,254
|
|
|
2,042
|
|
|
1,677
|
|
|
1,599
|
|
|
1,701
|
|
|
Stores open at year end:
|
|
|
|
|
|
|
|
|
|
||||||
Americas
(1)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
9,413
|
|
|
9,019
|
|
|
8,671
|
|
|
8,395
|
|
|
8,078
|
|
|
Licensed stores
|
7,146
|
|
|
6,588
|
|
|
6,132
|
|
|
5,796
|
|
|
5,415
|
|
|
China/Asia Pacific
(2)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
3,070
|
|
|
2,811
|
|
|
2,452
|
|
|
1,132
|
|
|
882
|
|
|
Licensed stores
|
4,409
|
|
|
3,632
|
|
|
3,010
|
|
|
3,492
|
|
|
3,000
|
|
|
EMEA
(3)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
502
|
|
|
523
|
|
|
737
|
|
|
817
|
|
|
826
|
|
|
Licensed stores
|
2,472
|
|
|
2,119
|
|
|
1,625
|
|
|
1,323
|
|
|
1,143
|
|
|
All Other Segments
(4)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
290
|
|
|
358
|
|
|
375
|
|
|
369
|
|
|
357
|
|
|
Licensed stores
|
37
|
|
|
35
|
|
|
41
|
|
|
42
|
|
|
66
|
|
|
Total
|
27,339
|
|
|
25,085
|
|
|
23,043
|
|
|
21,366
|
|
|
19,767
|
|
(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 has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2014. China/Asia Pacific store data also 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 and the transfer of 133 Singapore stores from company-operated stores to licensed stores in the fourth quarter of fiscal 2017.
|
(3)
|
EMEA store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the second and fourth quarters of fiscal 2014. EMEA store data also 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.
|
(4)
|
All Others Segments data includes 337 Teavana
™
stores acquired in the second quarter of fiscal 2013 and the net closure of 64 Teavana-branded stores in fiscal 2017.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Total net revenues increased
5%
to
$22.4 billion
in fiscal
2017
compared to
$21.3 billion
in fiscal
2016
. Excluding $412.4 million from extra week of fiscal 2016, net revenues grew 7%.
|
•
|
Global comparable store sales grew 3% driven by a 3% increase in average ticket.
|
•
|
Consolidated operating income decreased to
$4.1 billion
in fiscal
2017
compared to operating income of
$4.2 billion
in fiscal
2016
. Fiscal
2017
operating margin was
18.5%
compared to
19.6%
in fiscal
2016
. Operating margin compression in fiscal
2017
was primarily driven by increased partner (employee) and digital investments, largely in the Americas segment, restructuring and impairment charges
and the absence of the 53rd week, partially offset by sales leverage.
|
•
|
Restructuring and impairment charges for fiscal
2017
were
$153.5 million
and primarily related to our strategic changes in our Teavana business including a partial goodwill impairment, store asset impairments, costs associated with early closure of stores and severance. Additional amounts incurred related to an impairment of our Switzerland retail business and asset impairments of certain Starbucks
®
company-operated stores in Canada.
|
•
|
Earnings per share (“EPS”) for fiscal
2017
increased to
$1.97
, compared to EPS of
$1.90
in fiscal 2016, which benefited $0.06 per share from the extra week in fiscal 2016. The increase was primarily driven by growth in comparable store sales, improved sales leverage and the gain on the sale of Singapore retail operations, partially offset by restructuring and impairment charges.
|
•
|
Cash flows from operations were
$4.2 billion
in fiscal
2017
compared to
$4.6 billion
in fiscal
2016
. The change was primarily due to the timing of our cash payments for income taxes.
|
•
|
Capital expenditures were
$1.5 billion
in fiscal
2017
compared to
$1.4 billion
in fiscal
2016
.
|
•
|
We returned
$3.5 billion
to our shareholders in fiscal
2017
through share repurchases and dividends compared to $3.2 billion in fiscal 2016.
|
•
|
Accelerate U.S. Comparable Store Sales
|
•
|
Drive Innovation in Food and Beverage
|
•
|
Accelerate the Power and Momentum of our Digital Platform
|
•
|
Enable Long-Term Growth in China
|
•
|
Elevate the
Starbucks Experience
through Siren Retail
|
•
|
Gain Share of At-Home Coffee
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
%
Change
|
|||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
||||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
17,650.7
|
|
|
$
|
16,844.1
|
|
|
4.8
|
%
|
Licensed stores
|
2,355.0
|
|
|
2,154.2
|
|
|
9.3
|
|
||
CPG, foodservice and other
|
2,381.1
|
|
|
2,317.6
|
|
|
2.7
|
|
||
Total net revenues
|
$
|
22,386.8
|
|
|
$
|
21,315.9
|
|
|
5.0
|
%
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Cost of sales including occupancy costs
|
$
|
9,038.2
|
|
|
$
|
8,511.1
|
|
|
40.4
|
%
|
|
39.9
|
%
|
Store operating expenses
|
6,493.3
|
|
|
6,064.3
|
|
|
29.0
|
|
|
28.4
|
|
||
Other operating expenses
|
553.8
|
|
|
545.4
|
|
|
2.5
|
|
|
2.6
|
|
||
Depreciation and amortization expenses
|
1,011.4
|
|
|
980.8
|
|
|
4.5
|
|
|
4.6
|
|
||
General and administrative expenses
|
1,393.3
|
|
|
1,360.6
|
|
|
6.2
|
|
|
6.4
|
|
||
Restructuring and impairments
|
153.5
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
||
Total operating expenses
|
18,643.5
|
|
|
17,462.2
|
|
|
83.3
|
|
|
81.9
|
|
||
Income from equity investees
|
391.4
|
|
|
318.2
|
|
|
1.7
|
|
|
1.5
|
|
||
Operating income
|
$
|
4,134.7
|
|
|
$
|
4,171.9
|
|
|
18.5
|
%
|
|
19.6
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
36.8
|
%
|
|
36.0
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
11.7
|
%
|
|
12.2
|
%
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Operating income
|
$
|
4,134.7
|
|
|
$
|
4,171.9
|
|
|
18.5
|
%
|
|
19.6
|
%
|
Interest income and other, net
|
275.3
|
|
|
108.0
|
|
|
1.2
|
|
|
0.5
|
|
||
Interest expense
|
(92.5
|
)
|
|
(81.3
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||
Earnings before income taxes
|
4,317.5
|
|
|
4,198.6
|
|
|
19.3
|
|
|
19.7
|
|
||
Income tax expense
|
1,432.6
|
|
|
1,379.7
|
|
|
6.4
|
|
|
6.5
|
|
||
Net earnings including noncontrolling interests
|
2,884.9
|
|
|
2,818.9
|
|
|
12.9
|
|
|
13.2
|
|
||
Net earnings attributable to noncontrolling interests
|
0.2
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
2,884.7
|
|
|
$
|
2,817.7
|
|
|
12.9
|
%
|
|
13.2
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
33.2
|
%
|
|
32.9
|
%
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
13,996.4
|
|
|
$
|
13,247.4
|
|
|
89.4
|
%
|
|
89.5
|
%
|
Licensed stores
|
1,617.3
|
|
|
1,518.5
|
|
|
10.3
|
|
|
10.3
|
|
||
Foodservice and other
|
39.0
|
|
|
29.5
|
|
|
0.2
|
|
|
0.2
|
|
||
Total net revenues
|
15,652.7
|
|
|
14,795.4
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
5,720.3
|
|
|
5,271.9
|
|
|
36.5
|
|
|
35.6
|
|
||
Store operating expenses
|
5,320.2
|
|
|
4,909.3
|
|
|
34.0
|
|
|
33.2
|
|
||
Other operating expenses
|
128.5
|
|
|
96.0
|
|
|
0.8
|
|
|
0.6
|
|
||
Depreciation and amortization expenses
|
615.0
|
|
|
590.1
|
|
|
3.9
|
|
|
4.0
|
|
||
General and administrative expenses
|
201.4
|
|
|
186.1
|
|
|
1.3
|
|
|
1.3
|
|
||
Restructuring and impairments
|
4.1
|
|
|
—
|
|
|
—
|
%
|
|
—
|
%
|
||
Total operating expenses
|
11,989.5
|
|
|
11,053.4
|
|
|
76.6
|
|
|
74.7
|
|
||
Operating income
|
$
|
3,663.2
|
|
|
$
|
3,742.0
|
|
|
23.4
|
%
|
|
25.3
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
38.0
|
%
|
|
37.1
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
7.8
|
%
|
|
6.2
|
%
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of China/Asia Pacific
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
2,906.0
|
|
|
$
|
2,640.4
|
|
|
89.7
|
%
|
|
89.8
|
%
|
Licensed stores
|
327.4
|
|
|
292.3
|
|
|
10.1
|
|
|
9.9
|
|
||
Foodservice and other
|
6.8
|
|
|
6.1
|
|
|
0.2
|
|
|
0.2
|
|
||
Total net revenues
|
3,240.2
|
|
|
2,938.8
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
1,393.9
|
|
|
1,296.7
|
|
|
43.0
|
|
|
44.1
|
|
||
Store operating expenses
|
845.5
|
|
|
779.4
|
|
|
26.1
|
|
|
26.5
|
|
||
Other operating expenses
|
74.6
|
|
|
70.3
|
|
|
2.3
|
|
|
2.4
|
|
||
Depreciation and amortization expenses
|
202.2
|
|
|
180.6
|
|
|
6.2
|
|
|
6.1
|
|
||
General and administrative expenses
|
156.0
|
|
|
130.3
|
|
|
4.8
|
|
|
4.4
|
|
||
Total operating expenses
|
2,672.2
|
|
|
2,457.3
|
|
|
82.5
|
|
|
83.6
|
|
||
Income from equity investees
|
197.0
|
|
|
150.1
|
|
|
6.1
|
|
|
5.1
|
|
||
Operating income
|
$
|
765.0
|
|
|
$
|
631.6
|
|
|
23.6
|
%
|
|
21.5
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
29.1
|
%
|
|
29.5
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
22.3
|
%
|
|
23.6
|
%
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of EMEA
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
551.0
|
|
|
$
|
732.0
|
|
|
54.4
|
%
|
|
65.1
|
%
|
Licensed stores
|
407.7
|
|
|
339.5
|
|
|
40.2
|
|
|
30.2
|
|
||
Foodservice
|
55.0
|
|
|
53.4
|
|
|
5.4
|
|
|
4.7
|
|
||
Total net revenues
|
1,013.7
|
|
|
1,124.9
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
533.5
|
|
|
565.0
|
|
|
52.6
|
|
|
50.2
|
|
||
Store operating expenses
|
214.1
|
|
|
260.6
|
|
|
21.1
|
|
|
23.2
|
|
||
Other operating expenses
|
59.1
|
|
|
57.0
|
|
|
5.8
|
|
|
5.1
|
|
||
Depreciation and amortization expenses
|
31.3
|
|
|
40.8
|
|
|
3.1
|
|
|
3.6
|
|
||
General and administrative expenses
|
41.7
|
|
|
51.4
|
|
|
4.1
|
|
|
4.6
|
|
||
Restructuring and impairments
|
17.9
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
||
Total operating expenses
|
897.6
|
|
|
974.8
|
|
|
88.5
|
|
|
86.7
|
|
||
Income from equity investees
|
—
|
|
|
1.5
|
|
|
—
|
|
|
0.1
|
|
||
Operating income
|
$
|
116.1
|
|
|
$
|
151.6
|
|
|
11.5
|
%
|
|
13.5
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
38.9
|
%
|
|
35.6
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
12.8
|
%
|
|
14.5
|
%
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
CPG
|
$
|
1,543.7
|
|
|
$
|
1,488.2
|
|
|
76.9
|
%
|
|
77.0
|
%
|
Foodservice
|
464.9
|
|
|
444.3
|
|
|
23.1
|
|
|
23.0
|
|
||
Total net revenues
|
2,008.6
|
|
|
1,932.5
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
1,074.3
|
|
|
1,042.6
|
|
|
53.5
|
|
|
54.0
|
|
||
Other operating expenses
|
222.2
|
|
|
228.5
|
|
|
11.1
|
|
|
11.8
|
|
||
Depreciation and amortization expenses
|
2.2
|
|
|
2.8
|
|
|
0.1
|
|
|
0.1
|
|
||
General and administrative expenses
|
10.9
|
|
|
17.9
|
|
|
0.5
|
|
|
0.9
|
|
||
Total operating expenses
|
1,309.6
|
|
|
1,291.8
|
|
|
65.2
|
|
|
66.8
|
|
||
Income from equity investees
|
194.4
|
|
|
166.6
|
|
|
9.7
|
|
|
8.6
|
|
||
Operating income
|
$
|
893.4
|
|
|
$
|
807.3
|
|
|
44.5
|
%
|
|
41.8
|
%
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
% Change
|
|||||
|
(52 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
||||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
197.3
|
|
|
$
|
224.3
|
|
|
(12.0
|
)%
|
Licensed stores
|
2.6
|
|
|
3.9
|
|
|
(33.3
|
)
|
||
CPG, foodservice and other
|
271.7
|
|
|
296.1
|
|
|
(8.2
|
)
|
||
Total net revenues
|
471.6
|
|
|
524.3
|
|
|
(10.1
|
)
|
||
Cost of sales including occupancy costs
|
308.0
|
|
|
316.5
|
|
|
(2.7
|
)
|
||
Store operating expenses
|
113.5
|
|
|
115.0
|
|
|
(1.3
|
)
|
||
Other operating expenses
|
68.2
|
|
|
91.4
|
|
|
(25.4
|
)
|
||
Depreciation and amortization expenses
|
10.1
|
|
|
13.3
|
|
|
(24.1
|
)
|
||
General and administrative expenses
|
14.6
|
|
|
26.5
|
|
|
(44.9
|
)
|
||
Restructuring and impairments
|
131.5
|
|
|
—
|
|
|
nm
|
|
||
Total operating expenses
|
645.9
|
|
|
562.7
|
|
|
14.8
|
|
||
Operating loss
|
$
|
(174.3
|
)
|
|
$
|
(38.4
|
)
|
|
353.9
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
%
Change |
|||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
||||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
16,844.1
|
|
|
$
|
15,197.3
|
|
|
10.8
|
%
|
Licensed stores
|
2,154.2
|
|
|
1,861.9
|
|
|
15.7
|
|
||
CPG, foodservice and other
|
2,317.6
|
|
|
2,103.5
|
|
|
10.2
|
|
||
Total net revenues
|
$
|
21,315.9
|
|
|
$
|
19,162.7
|
|
|
11.2
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Cost of sales including occupancy costs
|
$
|
8,511.1
|
|
|
$
|
7,787.5
|
|
|
39.9
|
%
|
|
40.6
|
%
|
Store operating expenses
|
6,064.3
|
|
|
5,411.1
|
|
|
28.4
|
|
|
28.2
|
|
||
Other operating expenses
|
545.4
|
|
|
522.4
|
|
|
2.6
|
|
|
2.7
|
|
||
Depreciation and amortization expenses
|
980.8
|
|
|
893.9
|
|
|
4.6
|
|
|
4.7
|
|
||
General and administrative expenses
|
1,360.6
|
|
|
1,196.7
|
|
|
6.4
|
|
|
6.2
|
|
||
Total operating expenses
|
17,462.2
|
|
|
15,811.6
|
|
|
81.9
|
|
|
82.5
|
|
||
Income from equity investees
|
318.2
|
|
|
249.9
|
|
|
1.5
|
|
|
1.3
|
|
||
Operating income
|
$
|
4,171.9
|
|
|
$
|
3,601.0
|
|
|
19.6
|
%
|
|
18.8
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
36.0
|
%
|
|
35.6
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
12.2
|
%
|
|
13.2
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Operating income
|
$
|
4,171.9
|
|
|
$
|
3,601.0
|
|
|
19.6
|
%
|
|
18.8
|
%
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
390.6
|
|
|
—
|
|
|
2.0
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
(61.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
||
Interest income and other, net
|
108.0
|
|
|
43.0
|
|
|
0.5
|
|
|
0.2
|
|
||
Interest expense
|
(81.3
|
)
|
|
(70.5
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||
Earnings before income taxes
|
4,198.6
|
|
|
3,903.0
|
|
|
19.7
|
|
|
20.4
|
|
||
Income tax expense
|
1,379.7
|
|
|
1,143.7
|
|
|
6.5
|
|
|
6.0
|
|
||
Net earnings including noncontrolling interests
|
2,818.9
|
|
|
2,759.3
|
|
|
13.2
|
|
|
14.4
|
|
||
Net earnings attributable to noncontrolling interests
|
1.2
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
2,817.7
|
|
|
$
|
2,757.4
|
|
|
13.2
|
%
|
|
14.4
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
32.9
|
%
|
|
29.3
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
13,247.4
|
|
|
$
|
11,925.6
|
|
|
89.5
|
%
|
|
89.7
|
%
|
Licensed stores
|
1,518.5
|
|
|
1,334.4
|
|
|
10.3
|
|
|
10.0
|
|
||
Foodservice and other
|
29.5
|
|
|
33.4
|
|
|
0.2
|
|
|
0.3
|
|
||
Total net revenues
|
14,795.4
|
|
|
13,293.4
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
5,271.9
|
|
|
4,845.0
|
|
|
35.6
|
|
|
36.4
|
|
||
Store operating expenses
|
4,909.3
|
|
|
4,387.9
|
|
|
33.2
|
|
|
33.0
|
|
||
Other operating expenses
|
96.0
|
|
|
122.8
|
|
|
0.6
|
|
|
0.9
|
|
||
Depreciation and amortization expenses
|
590.1
|
|
|
522.3
|
|
|
4.0
|
|
|
3.9
|
|
||
General and administrative expenses
|
186.1
|
|
|
192.1
|
|
|
1.3
|
|
|
1.4
|
|
||
Total operating expenses
|
11,053.4
|
|
|
10,070.1
|
|
|
74.7
|
|
|
75.8
|
|
||
Operating income
|
$
|
3,742.0
|
|
|
$
|
3,223.3
|
|
|
25.3
|
%
|
|
24.2
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
37.1
|
%
|
|
36.8
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
6.2
|
%
|
|
9.0
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of China/Asia Pacific
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
2,640.4
|
|
|
$
|
2,127.3
|
|
|
89.8
|
%
|
|
88.8
|
%
|
Licensed stores
|
292.3
|
|
|
264.4
|
|
|
9.9
|
|
|
11.0
|
|
||
Foodservice and other
|
6.1
|
|
|
4.2
|
|
|
0.2
|
|
|
0.2
|
|
||
Total net revenues
|
2,938.8
|
|
|
2,395.9
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
1,296.7
|
|
|
1,071.5
|
|
|
44.1
|
|
|
44.7
|
|
||
Store operating expenses
|
779.4
|
|
|
609.8
|
|
|
26.5
|
|
|
25.5
|
|
||
Other operating expenses
|
70.3
|
|
|
62.2
|
|
|
2.4
|
|
|
2.6
|
|
||
Depreciation and amortization expenses
|
180.6
|
|
|
150.7
|
|
|
6.1
|
|
|
6.3
|
|
||
General and administrative expenses
|
130.3
|
|
|
120.8
|
|
|
4.4
|
|
|
5.0
|
|
||
Total operating expenses
|
2,457.3
|
|
|
2,015.0
|
|
|
83.6
|
|
|
84.1
|
|
||
Income from equity investees
|
150.1
|
|
|
119.6
|
|
|
5.1
|
|
|
5.0
|
|
||
Operating income
|
$
|
631.6
|
|
|
$
|
500.5
|
|
|
21.5
|
%
|
|
20.9
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
29.5
|
%
|
|
28.7
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
23.6
|
%
|
|
23.2
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of EMEA
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
732.0
|
|
|
$
|
911.2
|
|
|
65.1
|
%
|
|
74.9
|
%
|
Licensed stores
|
339.5
|
|
|
257.2
|
|
|
30.2
|
|
|
21.1
|
|
||
Foodservice
|
53.4
|
|
|
48.3
|
|
|
4.7
|
|
|
4.0
|
|
||
Total net revenues
|
1,124.9
|
|
|
1,216.7
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
565.0
|
|
|
582.5
|
|
|
50.2
|
|
|
47.9
|
|
||
Store operating expenses
|
260.6
|
|
|
308.7
|
|
|
23.2
|
|
|
25.4
|
|
||
Other operating expenses
|
57.0
|
|
|
51.8
|
|
|
5.1
|
|
|
4.3
|
|
||
Depreciation and amortization expenses
|
40.8
|
|
|
52.0
|
|
|
3.6
|
|
|
4.3
|
|
||
General and administrative expenses
|
51.4
|
|
|
56.6
|
|
|
4.6
|
|
|
4.7
|
|
||
Total operating expenses
|
974.8
|
|
|
1,051.6
|
|
|
86.7
|
|
|
86.4
|
|
||
Income from equity investees
|
1.5
|
|
|
3.1
|
|
|
0.1
|
|
|
0.3
|
|
||
Operating income
|
$
|
151.6
|
|
|
$
|
168.2
|
|
|
13.5
|
%
|
|
13.8
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
35.6
|
%
|
|
33.9
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
14.5
|
%
|
|
17.0
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
||||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
CPG
|
$
|
1,488.2
|
|
|
$
|
1,329.0
|
|
|
77.0
|
%
|
|
76.8
|
%
|
Foodservice
|
444.3
|
|
|
401.9
|
|
|
23.0
|
|
|
23.2
|
|
||
Total net revenues
|
1,932.5
|
|
|
1,730.9
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
1,042.6
|
|
|
974.8
|
|
|
54.0
|
|
|
56.3
|
|
||
Other operating expenses
|
228.5
|
|
|
210.5
|
|
|
11.8
|
|
|
12.2
|
|
||
Depreciation and amortization expenses
|
2.8
|
|
|
2.7
|
|
|
0.1
|
|
|
0.2
|
|
||
General and administrative expenses
|
17.9
|
|
|
16.2
|
|
|
0.9
|
|
|
0.9
|
|
||
Total operating expenses
|
1,291.8
|
|
|
1,204.2
|
|
|
66.8
|
|
|
69.6
|
|
||
Income from equity investees
|
166.6
|
|
|
127.2
|
|
|
8.6
|
|
|
7.3
|
|
||
Operating income
|
$
|
807.3
|
|
|
$
|
653.9
|
|
|
41.8
|
%
|
|
37.8
|
%
|
Fiscal Year Ended
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
%
Change
|
|||||
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
||||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
224.3
|
|
|
$
|
233.2
|
|
|
(3.8
|
)%
|
Licensed stores
|
3.9
|
|
|
5.9
|
|
|
(33.9
|
)%
|
||
CPG, foodservice and other
|
296.1
|
|
|
286.7
|
|
|
3.3
|
|
||
Total net revenues
|
524.3
|
|
|
525.8
|
|
|
(0.3
|
)
|
||
Cost of sales including occupancy costs
|
316.5
|
|
|
316.5
|
|
|
—
|
|
||
Store operating expenses
|
115.0
|
|
|
104.7
|
|
|
9.8
|
|
||
Other operating expenses
|
91.4
|
|
|
76.5
|
|
|
19.5
|
|
||
Depreciation and amortization expenses
|
13.3
|
|
|
16.3
|
|
|
(18.4
|
)
|
||
General and administrative expenses
|
26.5
|
|
|
36.6
|
|
|
(27.6
|
)
|
||
Total operating expenses
|
562.7
|
|
|
550.6
|
|
|
2.2
|
|
||
Operating loss
|
$
|
(38.4
|
)
|
|
$
|
(24.8
|
)
|
|
54.8
|
%
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
(1)
|
Total
|
|
Less than 1
Year
|
|
1 - 3
Years
|
|
3 - 5
Years
|
|
More than
5 Years
|
||||||||||
Operating lease obligations
(2)
|
$
|
8,613.5
|
|
|
$
|
1,213.1
|
|
|
$
|
2,210.2
|
|
|
$
|
1,875.0
|
|
|
$
|
3,315.2
|
|
Financing lease obligations
|
59.1
|
|
|
4.1
|
|
|
8.2
|
|
|
7.9
|
|
|
38.9
|
|
|||||
Debt obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments
|
3,955.3
|
|
|
—
|
|
|
350.0
|
|
|
1,250.0
|
|
|
2,355.3
|
|
|||||
Interest payments
|
868.9
|
|
|
83.6
|
|
|
185.6
|
|
|
172.9
|
|
|
426.8
|
|
|||||
Purchase obligations
(3)
|
1,310.1
|
|
|
848.1
|
|
|
380.1
|
|
|
73.6
|
|
|
8.3
|
|
|||||
Other obligations
(4)
|
134.7
|
|
|
20.3
|
|
|
28.1
|
|
|
18.8
|
|
|
67.5
|
|
|||||
Total
|
$
|
14,941.6
|
|
|
$
|
2,169.2
|
|
|
$
|
3,162.2
|
|
|
$
|
3,398.2
|
|
|
$
|
6,212.0
|
|
(1)
|
Income tax liabilities for uncertain tax positions for which we are not able to make a reasonably reliable estimate of the amount and period of related future payments were excluded. As of
October 1, 2017
, we excluded
$207.3 million
of gross unrecognized tax benefits for uncertain tax positions, which includes accrued interest and penalties.
|
(2)
|
Amounts include direct lease obligations, excluding any taxes, insurance and other related expenses.
|
(3)
|
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on Starbucks and that specify all significant terms. Green coffee purchase commitments comprise
91%
of total purchase obligations.
|
(4)
|
Other obligations include other long-term liabilities primarily consisting of asset retirement obligations and hedging instruments.
|
|
Increase/(Decrease) to Net Earnings
|
|
Increase/(Decrease) to OCI
|
||||||||||||
|
10% Increase in
Underlying Rate
|
|
10% Decrease in
Underlying Rate |
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
||||||||
Commodity hedges
|
$
|
6
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Increase/(Decrease) to Net Earnings
|
|
Increase/(Decrease) to OCI
|
||||||||||||
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
||||||||
Foreign currency hedges
|
$
|
23
|
|
|
$
|
(23
|
)
|
|
$
|
119
|
|
|
$
|
(119
|
)
|
|
|
|
|
|
Change in Fair Value
|
|||||||||
|
Stated Interest Rate
|
|
Fair Value
|
|
100 Basis Point Increase in
Underlying Rate
|
|
100 Basis Point Decrease in
Underlying Rate
|
|||||||
|
|
|||||||||||||
2018 notes
|
2.000
|
%
|
|
$
|
352
|
|
|
$
|
(4
|
)
|
|
$
|
4
|
|
2021 notes
|
2.100
|
%
|
|
$
|
751
|
|
|
$
|
(24
|
)
|
|
$
|
24
|
|
2022 notes
|
2.700
|
%
|
|
$
|
508
|
|
|
$
|
(22
|
)
|
|
$
|
22
|
|
2023 notes
(1)
|
3.850
|
%
|
|
$
|
806
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2024 notes
|
0.372
|
%
|
|
$
|
760
|
|
|
$
|
(47
|
)
|
|
$
|
47
|
|
2026 notes
|
2.450
|
%
|
|
$
|
481
|
|
|
$
|
(37
|
)
|
|
$
|
37
|
|
2045 notes
|
4.300
|
%
|
|
$
|
381
|
|
|
$
|
(63
|
)
|
|
$
|
63
|
|
(1)
|
Amount disclosed is net of ($42 million) change in the fair value of our designated interest rate swap. Refer to
Note 3
, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.
|
Item 8.
|
Financial Statements and Supplementary Data
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
Net revenues:
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
17,650.7
|
|
|
$
|
16,844.1
|
|
|
$
|
15,197.3
|
|
Licensed stores
|
2,355.0
|
|
|
2,154.2
|
|
|
1,861.9
|
|
|||
CPG, foodservice and other
|
2,381.1
|
|
|
2,317.6
|
|
|
2,103.5
|
|
|||
Total net revenues
|
22,386.8
|
|
|
21,315.9
|
|
|
19,162.7
|
|
|||
Cost of sales including occupancy costs
|
9,038.2
|
|
|
8,511.1
|
|
|
7,787.5
|
|
|||
Store operating expenses
|
6,493.3
|
|
|
6,064.3
|
|
|
5,411.1
|
|
|||
Other operating expenses
|
553.8
|
|
|
545.4
|
|
|
522.4
|
|
|||
Depreciation and amortization expenses
|
1,011.4
|
|
|
980.8
|
|
|
893.9
|
|
|||
General and administrative expenses
|
1,393.3
|
|
|
1,360.6
|
|
|
1,196.7
|
|
|||
Restructuring and impairments
|
153.5
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses
|
18,643.5
|
|
|
17,462.2
|
|
|
15,811.6
|
|
|||
Income from equity investees
|
391.4
|
|
|
318.2
|
|
|
249.9
|
|
|||
Operating income
|
4,134.7
|
|
|
4,171.9
|
|
|
3,601.0
|
|
|||
Gain resulting from acquisition of joint venture
|
—
|
|
|
—
|
|
|
390.6
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
(61.1
|
)
|
|||
Interest income and other, net
|
275.3
|
|
|
108.0
|
|
|
43.0
|
|
|||
Interest expense
|
(92.5
|
)
|
|
(81.3
|
)
|
|
(70.5
|
)
|
|||
Earnings before income taxes
|
4,317.5
|
|
|
4,198.6
|
|
|
3,903.0
|
|
|||
Income tax expense
|
1,432.6
|
|
|
1,379.7
|
|
|
1,143.7
|
|
|||
Net earnings including noncontrolling interests
|
2,884.9
|
|
|
2,818.9
|
|
|
2,759.3
|
|
|||
Net earnings attributable to noncontrolling interests
|
0.2
|
|
|
1.2
|
|
|
1.9
|
|
|||
Net earnings attributable to Starbucks
|
$
|
2,884.7
|
|
|
$
|
2,817.7
|
|
|
$
|
2,757.4
|
|
Earnings per share — basic
|
$
|
1.99
|
|
|
$
|
1.91
|
|
|
$
|
1.84
|
|
Earnings per share — diluted
|
$
|
1.97
|
|
|
$
|
1.90
|
|
|
$
|
1.82
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
1,449.5
|
|
|
1,471.6
|
|
|
1,495.9
|
|
|||
Diluted
|
1,461.5
|
|
|
1,486.7
|
|
|
1,513.4
|
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
Net earnings including noncontrolling interests
|
$
|
2,884.9
|
|
|
$
|
2,818.9
|
|
|
$
|
2,759.3
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
(9.5
|
)
|
|
3.5
|
|
|
1.4
|
|
|||
Tax (expense)/benefit
|
2.9
|
|
|
(1.3
|
)
|
|
(0.5
|
)
|
|||
Unrealized gains/(losses) on cash flow hedging instruments
|
53.2
|
|
|
(109.6
|
)
|
|
47.6
|
|
|||
Tax (expense)/benefit
|
(12.6
|
)
|
|
27.5
|
|
|
(16.8
|
)
|
|||
Unrealized gains/(losses) on net investment hedging instruments
|
20.1
|
|
|
—
|
|
|
4.3
|
|
|||
Tax (expense)/benefit
|
(7.4
|
)
|
|
—
|
|
|
(1.6
|
)
|
|||
Translation adjustment and other
|
(38.3
|
)
|
|
85.5
|
|
|
(222.7
|
)
|
|||
Tax (expense)/benefit
|
(2.4
|
)
|
|
19.0
|
|
|
6.0
|
|
|||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment
|
(67.2
|
)
|
|
78.2
|
|
|
(65.9
|
)
|
|||
Tax expense/(benefit)
|
14.0
|
|
|
(11.8
|
)
|
|
23.5
|
|
|||
Other comprehensive income/(loss)
|
(47.2
|
)
|
|
91.0
|
|
|
(224.7
|
)
|
|||
Comprehensive income including noncontrolling interests
|
2,837.7
|
|
|
2,909.9
|
|
|
2,534.6
|
|
|||
Comprehensive income/(loss) attributable to noncontrolling interests
|
0.2
|
|
|
1.2
|
|
|
(29.2
|
)
|
|||
Comprehensive income attributable to Starbucks
|
$
|
2,837.5
|
|
|
$
|
2,908.7
|
|
|
$
|
2,563.8
|
|
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,462.3
|
|
|
$
|
2,128.8
|
|
Short-term investments
|
228.6
|
|
|
134.4
|
|
||
Accounts receivable, net
|
870.4
|
|
|
768.8
|
|
||
Inventories
|
1,364.0
|
|
|
1,378.5
|
|
||
Prepaid expenses and other current assets
|
358.1
|
|
|
347.4
|
|
||
Total current assets
|
5,283.4
|
|
|
4,757.9
|
|
||
Long-term investments
|
542.3
|
|
|
1,141.7
|
|
||
Equity and cost investments
|
481.6
|
|
|
354.5
|
|
||
Property, plant and equipment, net
|
4,919.5
|
|
|
4,533.8
|
|
||
Deferred income taxes, net
|
795.4
|
|
|
885.4
|
|
||
Other long-term assets
|
362.8
|
|
|
403.3
|
|
||
Other intangible assets
|
441.4
|
|
|
516.3
|
|
||
Goodwill
|
1,539.2
|
|
|
1,719.6
|
|
||
TOTAL ASSETS
|
$
|
14,365.6
|
|
|
$
|
14,312.5
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
782.5
|
|
|
$
|
730.6
|
|
Accrued liabilities
|
1,934.5
|
|
|
1,999.1
|
|
||
Insurance reserves
|
215.2
|
|
|
246.0
|
|
||
Stored value card liability
|
1,288.5
|
|
|
1,171.2
|
|
||
Current portion of long-term debt
|
—
|
|
|
399.9
|
|
||
Total current liabilities
|
4,220.7
|
|
|
4,546.8
|
|
||
Long-term debt
|
3,932.6
|
|
|
3,185.3
|
|
||
Other long-term liabilities
|
755.3
|
|
|
689.7
|
|
||
Total liabilities
|
8,908.6
|
|
|
8,421.8
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,431.6 and 1,460.5 shares, respectively
|
1.4
|
|
|
1.5
|
|
||
Additional paid-in capital
|
41.1
|
|
|
41.1
|
|
||
Retained earnings
|
5,563.2
|
|
|
5,949.8
|
|
||
Accumulated other comprehensive loss
|
(155.6
|
)
|
|
(108.4
|
)
|
||
Total shareholders’ equity
|
5,450.1
|
|
|
5,884.0
|
|
||
Noncontrolling interests
|
6.9
|
|
|
6.7
|
|
||
Total equity
|
5,457.0
|
|
|
5,890.7
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
14,365.6
|
|
|
$
|
14,312.5
|
|
Fiscal Year Ended
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net earnings including noncontrolling interests
|
$
|
2,884.9
|
|
|
$
|
2,818.9
|
|
|
$
|
2,759.3
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
1,067.1
|
|
|
1,030.1
|
|
|
933.8
|
|
|||
Deferred income taxes, net
|
95.1
|
|
|
265.7
|
|
|
21.2
|
|
|||
Income earned from equity method investees
|
(310.2
|
)
|
|
(250.2
|
)
|
|
(190.2
|
)
|
|||
Distributions received from equity method investees
|
186.6
|
|
|
223.3
|
|
|
148.2
|
|
|||
Gain resulting from acquisition/sale of equity in joint ventures and certain retail operations
|
(93.5
|
)
|
|
(6.1
|
)
|
|
(394.3
|
)
|
|||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
61.1
|
|
|||
Stock-based compensation
|
176.0
|
|
|
218.1
|
|
|
209.8
|
|
|||
Excess tax benefit on share-based awards
|
(77.5
|
)
|
|
(122.8
|
)
|
|
(132.4
|
)
|
|||
Goodwill Impairments
|
87.2
|
|
|
—
|
|
|
—
|
|
|||
Other
|
68.9
|
|
|
45.1
|
|
|
53.8
|
|
|||
Cash provided by changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(96.8
|
)
|
|
(55.6
|
)
|
|
(82.8
|
)
|
|||
Inventories
|
14.0
|
|
|
(67.5
|
)
|
|
(207.9
|
)
|
|||
Accounts payable
|
46.4
|
|
|
46.9
|
|
|
137.7
|
|
|||
Stored value card liability
|
130.8
|
|
|
180.4
|
|
|
170.3
|
|
|||
Other operating assets and liabilities
|
(4.7
|
)
|
|
248.8
|
|
|
261.5
|
|
|||
Net cash provided by operating activities
|
4,174.3
|
|
|
4,575.1
|
|
|
3,749.1
|
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchases of investments
|
(674.4
|
)
|
|
(1,585.7
|
)
|
|
(567.4
|
)
|
|||
Sales of investments
|
1,054.5
|
|
|
680.7
|
|
|
600.6
|
|
|||
Maturities and calls of investments
|
149.6
|
|
|
27.9
|
|
|
18.8
|
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(284.3
|
)
|
|||
Additions to property, plant and equipment
|
(1,519.4
|
)
|
|
(1,440.3
|
)
|
|
(1,303.7
|
)
|
|||
Net proceeds from sale of equity in joint ventures and certain retail operations
|
85.4
|
|
|
69.6
|
|
|
8.9
|
|
|||
Other
|
54.3
|
|
|
24.9
|
|
|
6.8
|
|
|||
Net cash used by investing activities
|
(850.0
|
)
|
|
(2,222.9
|
)
|
|
(1,520.3
|
)
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
750.2
|
|
|
1,254.5
|
|
|
848.5
|
|
|||
Repayments of long-term debt
|
(400.0
|
)
|
|
—
|
|
|
(610.1
|
)
|
|||
Cash used for purchase of non-controlling interest
|
—
|
|
|
—
|
|
|
(360.8
|
)
|
|||
Proceeds from issuance of common stock
|
150.8
|
|
|
160.7
|
|
|
191.8
|
|
|||
Excess tax benefit on share-based awards
|
77.5
|
|
|
122.8
|
|
|
132.4
|
|
|||
Cash dividends paid
|
(1,450.4
|
)
|
|
(1,178.0
|
)
|
|
(928.6
|
)
|
|||
Repurchase of common stock
|
(2,042.5
|
)
|
|
(1,995.6
|
)
|
|
(1,436.1
|
)
|
|||
Minimum tax withholdings on share-based awards
|
(82.8
|
)
|
|
(106.0
|
)
|
|
(75.5
|
)
|
|||
Other
|
(4.4
|
)
|
|
(8.4
|
)
|
|
(18.1
|
)
|
|||
Net cash used by financing activities
|
(3,001.6
|
)
|
|
(1,750.0
|
)
|
|
(2,256.5
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
10.8
|
|
|
(3.5
|
)
|
|
(150.6
|
)
|
|||
Net increase/(decrease) in cash and cash equivalents
|
333.5
|
|
|
598.7
|
|
|
(178.3
|
)
|
|||
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
||||||
Beginning of period
|
2,128.8
|
|
|
1,530.1
|
|
|
1,708.4
|
|
|||
End of period
|
$
|
2,462.3
|
|
|
$
|
2,128.8
|
|
|
$
|
1,530.1
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest, net of capitalized interest
|
$
|
96.6
|
|
|
$
|
74.7
|
|
|
$
|
69.5
|
|
Income taxes, net of refunds
|
$
|
1,389.1
|
|
|
$
|
878.7
|
|
|
$
|
1,072.2
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Shareholders’
Equity |
|
Noncontrolling
Interests |
|
Total
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
Balance, September 28, 2014
|
749.5
|
|
|
$
|
0.7
|
|
|
$
|
39.4
|
|
|
$
|
5,206.6
|
|
|
$
|
25.3
|
|
|
$
|
5,272.0
|
|
|
$
|
1.7
|
|
|
$
|
5,273.7
|
|
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,757.4
|
|
|
—
|
|
|
2,757.4
|
|
|
1.9
|
|
|
2,759.3
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(193.6
|
)
|
|
(193.6
|
)
|
|
(31.1
|
)
|
|
(224.7
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
211.7
|
|
|
—
|
|
|
—
|
|
|
211.7
|
|
|
—
|
|
|
211.7
|
|
|||||||
Exercise of stock options/vesting of RSUs, including tax benefit of $131.3
|
14.6
|
|
|
—
|
|
|
224.4
|
|
|
—
|
|
|
—
|
|
|
224.4
|
|
|
—
|
|
|
224.4
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.6
|
|
|
—
|
|
|
23.5
|
|
|
—
|
|
|
—
|
|
|
23.5
|
|
|
—
|
|
|
23.5
|
|
|||||||
Repurchase of common stock
|
(29.0
|
)
|
|
—
|
|
|
(459.6
|
)
|
|
(972.2
|
)
|
|
—
|
|
|
(1,431.8
|
)
|
|
—
|
|
|
(1,431.8
|
)
|
|||||||
Cash dividends declared, $0.680 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,016.2
|
)
|
|
—
|
|
|
(1,016.2
|
)
|
|
—
|
|
|
(1,016.2
|
)
|
|||||||
Two-for-one stock split
|
749.4
|
|
|
0.8
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Noncontrolling interest resulting from acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411.1
|
|
|
411.1
|
|
|||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
(31.1
|
)
|
|
(29.4
|
)
|
|
(381.7
|
)
|
|
(411.1
|
)
|
|||||||
Balance, September 27, 2015
|
1,485.1
|
|
|
$
|
1.5
|
|
|
$
|
41.1
|
|
|
$
|
5,974.8
|
|
|
$
|
(199.4
|
)
|
|
$
|
5,818.0
|
|
|
$
|
1.8
|
|
|
$
|
5,819.8
|
|
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,817.7
|
|
|
—
|
|
|
2,817.7
|
|
|
1.2
|
|
|
2,818.9
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91.0
|
|
|
91.0
|
|
|
—
|
|
|
91.0
|
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
219.6
|
|
|
—
|
|
|
—
|
|
|
219.6
|
|
|
—
|
|
|
219.6
|
|
|||||||
Exercise of stock options/vesting of RSUs, including tax benefit of $124.3
|
9.8
|
|
|
—
|
|
|
153.0
|
|
|
—
|
|
|
—
|
|
|
153.0
|
|
|
—
|
|
|
153.0
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.5
|
|
|
—
|
|
|
26.5
|
|
|
—
|
|
|
—
|
|
|
26.5
|
|
|
—
|
|
|
26.5
|
|
|||||||
Repurchase of common stock
|
(34.9
|
)
|
|
—
|
|
|
(399.1
|
)
|
|
(1,596.5
|
)
|
|
—
|
|
|
(1,995.6
|
)
|
|
—
|
|
|
(1,995.6
|
)
|
|||||||
Cash dividends declared, $0.850 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,246.2
|
)
|
|
—
|
|
|
(1,246.2
|
)
|
|
—
|
|
|
(1,246.2
|
)
|
|||||||
Noncontrolling interest resulting from acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
3.7
|
|
|||||||
Balance, October 2, 2016
|
1,460.5
|
|
|
$
|
1.5
|
|
|
$
|
41.1
|
|
|
$
|
5,949.8
|
|
|
$
|
(108.4
|
)
|
|
$
|
5,884.0
|
|
|
$
|
6.7
|
|
|
$
|
5,890.7
|
|
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,884.7
|
|
|
—
|
|
|
2,884.7
|
|
|
0.2
|
|
|
2,884.9
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47.2
|
)
|
|
(47.2
|
)
|
|
—
|
|
|
(47.2
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
177.9
|
|
|
—
|
|
|
—
|
|
|
177.9
|
|
|
—
|
|
|
177.9
|
|
|||||||
Exercise of stock options/vesting of RSUs, including tax benefit of $77.4
|
8.1
|
|
|
—
|
|
|
117.0
|
|
|
—
|
|
|
—
|
|
|
117.0
|
|
|
—
|
|
|
117.0
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.5
|
|
|
—
|
|
|
28.7
|
|
|
—
|
|
|
—
|
|
|
28.7
|
|
|
—
|
|
|
28.7
|
|
|||||||
Repurchase of common stock
|
(37.5
|
)
|
|
(0.1
|
)
|
|
(323.6
|
)
|
|
(1,755.4
|
)
|
|
—
|
|
|
(2,079.1
|
)
|
|
—
|
|
|
(2,079.1
|
)
|
|||||||
Cash dividends declared, $1.05 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,515.9
|
)
|
|
—
|
|
|
(1,515.9
|
)
|
|
—
|
|
|
(1,515.9
|
)
|
|||||||
Balance, October 1, 2017
|
1,431.6
|
|
|
$
|
1.4
|
|
|
$
|
41.1
|
|
|
$
|
5,563.2
|
|
|
$
|
(155.6
|
)
|
|
$
|
5,450.1
|
|
|
$
|
6.9
|
|
|
$
|
5,457.0
|
|
Note 1
|
||
Note 2
|
||
Note 3
|
||
Note 4
|
||
Note 5
|
||
Note 6
|
||
Note 7
|
||
Note 8
|
||
Note 9
|
||
Note 10
|
||
Note 11
|
||
Note 12
|
||
Note 13
|
||
Note 14
|
||
Note 15
|
||
Note 16
|
||
Note 17
|
||
Note 18
|
Consideration:
|
|
|
||
Cash paid for Sazaby's 39.5% equity interest
|
|
$
|
508.7
|
|
Fair value of our preexisting 39.5% equity interest
|
|
577.0
|
|
|
Total consideration
|
|
$
|
1,085.7
|
|
|
|
|
||
Fair value of assets acquired and liabilities assumed:
|
|
|
||
Cash and cash equivalents
|
|
$
|
224.4
|
|
Accounts receivable, net
|
|
37.4
|
|
|
Inventories
|
|
26.4
|
|
|
Prepaid expenses and other current assets
|
|
35.7
|
|
|
Property, plant and equipment
|
|
282.9
|
|
|
Other long-term assets
|
|
141.4
|
|
|
Other intangible assets
|
|
323.0
|
|
|
Goodwill
|
|
815.6
|
|
|
Total assets acquired
|
|
1,886.8
|
|
|
Accounts payable
|
|
(54.5
|
)
|
|
Accrued liabilities
|
|
(115.9
|
)
|
|
Stored value card liability
|
|
(36.5
|
)
|
|
Deferred income taxes
|
|
(67.3
|
)
|
|
Other long-term liabilities
|
|
(115.8
|
)
|
|
Total liabilities assumed
|
|
(390.0
|
)
|
|
Noncontrolling interest
|
|
(411.1
|
)
|
|
Total consideration
|
|
$
|
1,085.7
|
|
|
|
Pro Forma (unaudited)
|
||
|
|
Year Ended
|
||
|
|
Sep 27, 2015
|
||
Revenue
|
|
$
|
19,254.5
|
|
Net earnings attributable to Starbucks
|
|
2,380.9
|
|
|
Net Gains/(Losses)
Included in AOCI |
|
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
|
|
Contract Remaining Maturity
(Months) |
||||||||||||
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
|
||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
$
|
17.6
|
|
|
$
|
20.5
|
|
|
$
|
30.1
|
|
|
$
|
3.0
|
|
|
0
|
Cross-currency swaps
|
(6.0
|
)
|
|
(7.7
|
)
|
|
(27.8
|
)
|
|
—
|
|
|
86
|
||||
Foreign currency - other
|
(9.1
|
)
|
|
(0.4
|
)
|
|
29.0
|
|
|
(5.8
|
)
|
|
36
|
||||
Coffee
|
(6.6
|
)
|
|
(1.6
|
)
|
|
(5.7
|
)
|
|
(6.6
|
)
|
|
4
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
16.2
|
|
|
1.3
|
|
|
1.3
|
|
|
0.1
|
|
|
0
|
||||
Foreign currency debt
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
Year Ended
|
||||||||||||||||||||||
|
Gains/(Losses) Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from AOCI to Earnings
|
||||||||||||||||||||
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rates
|
$
|
—
|
|
|
$
|
(10.3
|
)
|
|
$
|
(6.8
|
)
|
|
$
|
4.8
|
|
|
$
|
5.0
|
|
|
$
|
3.2
|
|
Cross-currency swaps
|
59.5
|
|
|
(75.7
|
)
|
|
11.4
|
|
|
57.2
|
|
|
(101.1
|
)
|
|
46.2
|
|
||||||
Foreign currency - other
|
1.8
|
|
|
(25.4
|
)
|
|
52.0
|
|
|
11.4
|
|
|
19.1
|
|
|
26.1
|
|
||||||
Coffee
|
(8.1
|
)
|
|
1.7
|
|
|
(9.0
|
)
|
|
(2.7
|
)
|
|
(2.8
|
)
|
|
(3.5
|
)
|
||||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency
|
23.6
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
7.2
|
|
||||||
Foreign currency debt
|
(3.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||||||
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Non-Designated Derivatives:
|
|
|
|
|
|
||||||
Foreign currency - other
|
$
|
4.6
|
|
|
$
|
(5.7
|
)
|
|
$
|
27.1
|
|
Dairy
|
—
|
|
|
(5.5
|
)
|
|
(3.8
|
)
|
|||
Diesel fuel and other commodities
|
1.3
|
|
|
(0.2
|
)
|
|
(9.0
|
)
|
|||
Designated Fair Value Hedging Instruments:
|
|
|
|
|
|
||||||
Interest rate swap
|
(5.2
|
)
|
|
—
|
|
|
—
|
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||
Interest rate swap
|
$
|
750
|
|
|
$
|
—
|
|
Cross-currency swaps
|
514
|
|
|
660
|
|
||
Foreign currency - other
|
901
|
|
|
688
|
|
||
Coffee
|
—
|
|
|
7
|
|
||
Dairy
|
14
|
|
|
76
|
|
||
Diesel fuel and other commodities
|
41
|
|
|
46
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||||||
Designated Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency swaps
|
$
|
12.4
|
|
|
$
|
—
|
|
|
$
|
9.8
|
|
|
$
|
57.0
|
|
Foreign currency - other
|
7.7
|
|
|
20.8
|
|
|
20.8
|
|
|
24.0
|
|
||||
Coffee
|
—
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
||||
Net investment hedges
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swap
|
—
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
||||
Non-designated Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
15.8
|
|
|
6.2
|
|
|
1.4
|
|
|
6.5
|
|
||||
Dairy
|
—
|
|
|
1.5
|
|
|
2.4
|
|
|
1.6
|
|
||||
Diesel fuel and other commodities
|
1.6
|
|
|
3.8
|
|
|
0.3
|
|
|
0.5
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Oct 1, 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
|
$
|
2,462.3
|
|
|
$
|
2,462.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
7.5
|
|
|
—
|
|
|
7.5
|
|
|
—
|
|
||||
Commercial paper
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Corporate debt securities
|
49.4
|
|
|
—
|
|
|
49.4
|
|
|
—
|
|
||||
Foreign government obligations
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
||||
U.S. government treasury securities
|
81.4
|
|
|
81.4
|
|
|
—
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Certificates of deposit
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
||||
Total available-for-sale securities
|
151.7
|
|
|
81.4
|
|
|
70.3
|
|
|
—
|
|
||||
Trading securities
|
76.9
|
|
|
76.9
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
228.6
|
|
|
158.3
|
|
|
70.3
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
13.4
|
|
|
0.1
|
|
|
13.3
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
21.8
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
||||
Corporate debt securities
|
207.4
|
|
|
—
|
|
|
207.4
|
|
|
—
|
|
||||
Auction rate securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Foreign government obligations
|
17.1
|
|
|
—
|
|
|
17.1
|
|
|
—
|
|
||||
U.S. government treasury securities
|
127.4
|
|
|
127.4
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
155.7
|
|
|
—
|
|
|
155.7
|
|
|
—
|
|
||||
Total long-term investments
|
542.3
|
|
|
127.4
|
|
|
409.0
|
|
|
5.9
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
24.4
|
|
|
—
|
|
|
24.4
|
|
|
—
|
|
||||
Total assets
|
$
|
3,271.0
|
|
|
$
|
2,748.1
|
|
|
$
|
517.0
|
|
|
$
|
5.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
16.4
|
|
|
$
|
2.5
|
|
|
$
|
13.9
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
22.1
|
|
|
—
|
|
|
22.1
|
|
|
—
|
|
||||
Total liabilities
|
$
|
38.5
|
|
|
$
|
2.5
|
|
|
$
|
36.0
|
|
|
$
|
—
|
|
|
|
|
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
|
|
|
$
|
—
|
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||
Coffee:
|
|
|
|
||||
Unroasted
|
$
|
541.0
|
|
|
$
|
561.6
|
|
Roasted
|
301.1
|
|
|
300.4
|
|
||
Other merchandise held for sale
|
301.1
|
|
|
308.6
|
|
||
Packaging and other supplies
|
220.8
|
|
|
207.9
|
|
||
Total
|
$
|
1,364.0
|
|
|
$
|
1,378.5
|
|
|
Oct 1,
2017 |
|
Oct 2,
2016 |
||||
Equity method investments
|
$
|
432.8
|
|
|
$
|
305.7
|
|
Cost method investments
|
48.8
|
|
|
48.8
|
|
||
Total
|
$
|
481.6
|
|
|
$
|
354.5
|
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||
Land
|
$
|
46.9
|
|
|
$
|
46.6
|
|
Buildings
|
481.7
|
|
|
458.4
|
|
||
Leasehold improvements
|
6,401.0
|
|
|
5,892.9
|
|
||
Store equipment
|
2,110.7
|
|
|
1,931.7
|
|
||
Roasting equipment
|
619.8
|
|
|
605.4
|
|
||
Furniture, fixtures and other
|
1,514.1
|
|
|
1,366.9
|
|
||
Work in progress
|
409.8
|
|
|
271.4
|
|
||
Property, plant and equipment, gross
|
11,584.0
|
|
|
10,573.3
|
|
||
Accumulated depreciation
|
(6,664.5
|
)
|
|
(6,039.5
|
)
|
||
Property, plant and equipment, net
|
$
|
4,919.5
|
|
|
$
|
4,533.8
|
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||
Accrued compensation and related costs
|
$
|
524.5
|
|
|
$
|
510.8
|
|
Accrued occupancy costs
|
151.3
|
|
|
137.5
|
|
||
Accrued taxes
|
226.6
|
|
|
368.4
|
|
||
Accrued dividends payable
|
429.5
|
|
|
365.1
|
|
||
Accrued capital and other operating expenditures
|
602.6
|
|
|
617.3
|
|
||
Total accrued liabilities
|
$
|
1,934.5
|
|
|
$
|
1,999.1
|
|
(in millions)
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||
Trade names, trademarks and patents
|
$
|
212.1
|
|
|
$
|
207.8
|
|
Other indefinite-lived intangible assets
|
15.1
|
|
|
15.1
|
|
||
Total indefinite-lived intangible assets
|
$
|
227.2
|
|
|
$
|
222.9
|
|
|
Americas
|
|
China/Asia Pacific
|
|
EMEA
|
|
Channel
Development |
|
All Other Segments
|
|
Total
|
||||||||||||
Goodwill balance at September 27, 2015
|
$
|
211.2
|
|
|
$
|
804.1
|
|
|
$
|
57.4
|
|
|
$
|
23.8
|
|
|
$
|
478.9
|
|
|
$
|
1,575.4
|
|
Acquisition/(divestiture)
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
—
|
|
|
5.3
|
|
|
2.7
|
|
||||||
Other
|
0.4
|
|
|
140.8
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
141.5
|
|
||||||
Goodwill balance at October 2, 2016
|
$
|
211.6
|
|
|
$
|
944.9
|
|
|
$
|
55.1
|
|
|
$
|
23.8
|
|
|
$
|
484.2
|
|
|
$
|
1,719.6
|
|
Acquisition/(divestiture)
|
—
|
|
|
(7.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6
|
)
|
||||||
Impairment
|
—
|
|
|
—
|
|
|
(17.9
|
)
|
|
—
|
|
|
(69.3
|
)
|
|
(87.2
|
)
|
||||||
Other
|
1.5
|
|
|
(87.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85.6
|
)
|
||||||
Goodwill balance at October 1, 2017
|
$
|
213.1
|
|
|
$
|
850.2
|
|
|
$
|
37.2
|
|
|
$
|
23.8
|
|
|
$
|
414.9
|
|
|
$
|
1,539.2
|
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||||||||||||||||||
(in millions)
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Acquired and reacquired rights
|
$
|
328.8
|
|
|
$
|
(154.2
|
)
|
|
$
|
174.6
|
|
|
$
|
361.3
|
|
|
$
|
(114.5
|
)
|
|
$
|
246.8
|
|
Acquired trade secrets and processes
|
27.6
|
|
|
(13.7
|
)
|
|
13.9
|
|
|
27.6
|
|
|
(11.0
|
)
|
|
16.6
|
|
||||||
Trade names, trademarks and patents
|
31.5
|
|
|
(17.6
|
)
|
|
13.9
|
|
|
29.4
|
|
|
(15.2
|
)
|
|
14.2
|
|
||||||
Licensing agreements
|
14.4
|
|
|
(3.8
|
)
|
|
10.6
|
|
|
16.0
|
|
|
(2.8
|
)
|
|
13.2
|
|
||||||
Other finite-lived intangible assets
|
6.7
|
|
|
(5.5
|
)
|
|
1.2
|
|
|
7.2
|
|
|
(4.6
|
)
|
|
2.6
|
|
||||||
Total finite-lived intangible assets
|
$
|
409.0
|
|
|
$
|
(194.8
|
)
|
|
$
|
214.2
|
|
|
$
|
441.5
|
|
|
$
|
(148.1
|
)
|
|
$
|
293.4
|
|
Fiscal Year Ending
|
|
||
2018
|
$
|
55.7
|
|
2019
|
54.5
|
|
|
2020
|
54.3
|
|
|
2021
|
31.4
|
|
|
2022
|
8.0
|
|
|
Thereafter
|
10.3
|
|
|
Total estimated future amortization expense
|
$
|
214.2
|
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Stated Interest Rate
|
Effective Interest Rate
(1)
|
||||||||||||
Issuance
|
Face Value
|
Estimated Fair Value
|
|
Face Value
|
Estimated Fair Value
|
|
||||||||||||
2016 notes
|
$
|
—
|
|
$
|
—
|
|
|
$
|
400.0
|
|
$
|
400
|
|
|
0.875
|
%
|
0.941
|
%
|
2018 notes
|
350.0
|
|
352
|
|
|
350.0
|
|
357
|
|
|
2.000
|
%
|
2.012
|
%
|
||||
2021 notes
|
500.0
|
|
501
|
|
|
500.0
|
|
511
|
|
|
2.100
|
%
|
2.293
|
%
|
||||
2021 notes
|
250.0
|
|
250
|
|
|
250.0
|
|
255
|
|
|
2.100
|
%
|
1.600
|
%
|
||||
2022 notes
|
500.0
|
|
508
|
|
|
500.0
|
|
526
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
2023 notes
|
750.0
|
|
806
|
|
|
750.0
|
|
839
|
|
|
3.850
|
%
|
2.859
|
%
|
||||
2024 notes
(2)
|
755.3
|
|
760
|
|
|
—
|
|
—
|
|
|
0.372
|
%
|
0.462
|
%
|
||||
2026 notes
|
500.0
|
|
481
|
|
|
500.0
|
|
509
|
|
|
2.450
|
%
|
2.511
|
%
|
||||
2045 notes
|
350.0
|
|
381
|
|
|
350.0
|
|
417
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
Total
|
3,955.3
|
|
4,039
|
|
|
3,600.0
|
|
3,814
|
|
|
|
|
||||||
Aggregate debt issuance costs and unamortized premium/(discount), net
|
(17.5
|
)
|
|
|
(14.8
|
)
|
|
|
|
|
||||||||
Hedge accounting fair value adjustment
(3)
|
(5.2
|
)
|
|
|
—
|
|
|
|
|
|
||||||||
Total
|
$
|
3,932.6
|
|
|
|
$
|
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.
|
Fiscal Year
|
Total
|
||
2018
|
$
|
—
|
|
2019
|
350.0
|
|
|
2020
|
—
|
|
|
2021
|
750.0
|
|
|
2022
|
500.0
|
|
|
Thereafter
|
2,355.3
|
|
|
Total
|
$
|
3,955.3
|
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Minimum rent
|
$
|
1,185.7
|
|
|
$
|
1,092.5
|
|
|
$
|
1,026.3
|
|
Contingent rent
|
143.5
|
|
|
130.7
|
|
|
111.5
|
|
|||
Total
|
$
|
1,329.2
|
|
|
$
|
1,223.2
|
|
|
$
|
1,137.8
|
|
Fiscal Year Ending
|
Operating Leases
|
|
Lease Financing Arrangements
|
||||
2018
|
$
|
1,213.1
|
|
|
$
|
4.1
|
|
2019
|
1,141.6
|
|
|
4.1
|
|
||
2020
|
1,068.6
|
|
|
4.1
|
|
||
2021
|
986.9
|
|
|
4.0
|
|
||
2022
|
888.1
|
|
|
3.9
|
|
||
Thereafter
|
3,315.2
|
|
|
38.9
|
|
||
Total minimum lease payments
|
$
|
8,613.5
|
|
|
$
|
59.1
|
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
October 1, 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
|
(6.6
|
)
|
|
40.6
|
|
|
12.7
|
|
|
(40.7
|
)
|
|
6.0
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
3.0
|
|
|
(55.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
(53.2
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(3.6
|
)
|
|
(15.0
|
)
|
|
12.7
|
|
|
(41.3
|
)
|
|
(47.2
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(2.5
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
14.0
|
|
|
$
|
(163.0
|
)
|
|
$
|
(155.6
|
)
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
October 2, 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
|
2.2
|
|
|
(82.1
|
)
|
|
—
|
|
|
104.5
|
|
|
24.6
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(1.0
|
)
|
|
67.4
|
|
|
—
|
|
|
—
|
|
|
66.4
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
1.2
|
|
|
(14.7
|
)
|
|
—
|
|
|
104.5
|
|
|
91.0
|
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
1.1
|
|
|
$
|
10.9
|
|
|
$
|
1.3
|
|
|
$
|
(121.7
|
)
|
|
$
|
(108.4
|
)
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
September 27, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(0.4
|
)
|
|
$
|
46.3
|
|
|
$
|
3.2
|
|
|
$
|
(23.8
|
)
|
|
$
|
25.3
|
|
Net gains/(losses) recognized in OCI before reclassifications
|
0.9
|
|
|
30.8
|
|
|
2.7
|
|
|
(185.6
|
)
|
|
(151.2
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
(0.6
|
)
|
|
(51.5
|
)
|
|
(4.6
|
)
|
|
14.3
|
|
|
(42.4
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
0.3
|
|
|
(20.7
|
)
|
|
(1.9
|
)
|
|
(171.3
|
)
|
|
(193.6
|
)
|
|||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(31.1
|
)
|
|
(31.1
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(0.1
|
)
|
|
$
|
25.6
|
|
|
$
|
1.3
|
|
|
$
|
(226.2
|
)
|
|
$
|
(199.4
|
)
|
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||||||
|
Fiscal Year Ended
|
|
||||||||||||
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
||||||||
Gains/(losses) on available-for-sale securities
|
|
$
|
(4.1
|
)
|
|
$
|
1.6
|
|
|
$
|
1.0
|
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
|
|
||||||
Interest rate hedges
|
|
4.8
|
|
|
5.0
|
|
|
3.2
|
|
|
Interest expense
|
|||
Cross-currency swaps
|
|
57.2
|
|
|
(101.1
|
)
|
|
46.2
|
|
|
Interest income and other, net
|
|||
Foreign currency hedges
|
|
3.0
|
|
|
4.9
|
|
|
14.0
|
|
|
Revenue
|
|||
Foreign currency/coffee hedges
|
|
5.7
|
|
|
11.4
|
|
|
8.6
|
|
|
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
|
|
0.6
|
|
|
—
|
|
|
(7.1
|
)
|
|
Interest income and other, net
|
|||
|
|
67.2
|
|
|
(78.2
|
)
|
|
65.9
|
|
|
Total before tax
|
|||
|
|
(14.0
|
)
|
|
11.8
|
|
|
(23.5
|
)
|
|
Tax (expense)/benefit
|
|||
|
|
$
|
53.2
|
|
|
$
|
(66.4
|
)
|
|
$
|
42.4
|
|
|
Net of tax
|
(1)
|
Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting
39.5%
equity method investment in Starbucks Japan.
|
(2)
|
Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign business.
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Options
|
$
|
44.3
|
|
|
$
|
42.7
|
|
|
$
|
37.8
|
|
RSUs
|
131.7
|
|
|
175.4
|
|
|
172.0
|
|
|||
Total stock-based compensation expense recognized in the consolidated statements of earnings
|
$
|
176.0
|
|
|
$
|
218.1
|
|
|
$
|
209.8
|
|
Total related tax benefit
|
$
|
57.6
|
|
|
$
|
73.0
|
|
|
$
|
72.3
|
|
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
|
$
|
1.9
|
|
|
$
|
1.5
|
|
|
$
|
1.9
|
|
|
Employee Stock Options
Granted During the Period |
||||||||||
Fiscal Year Ended
|
2017
|
|
2016
|
|
2015
|
||||||
Expected term (in years)
|
3.9
|
|
|
3.9
|
|
|
4.2
|
|
|||
Expected stock price volatility
|
21.6
|
%
|
|
23.9
|
%
|
|
22.3
|
%
|
|||
Risk-free interest rate
|
1.5
|
%
|
|
1.2
|
%
|
|
1.1
|
%
|
|||
Expected dividend yield
|
1.8
|
%
|
|
1.3
|
%
|
|
1.6
|
%
|
|||
Weighted average grant price
|
$
|
56.12
|
|
|
$
|
60.20
|
|
|
$
|
39.89
|
|
Estimated fair value per option granted
|
$
|
8.56
|
|
|
$
|
10.54
|
|
|
$
|
6.58
|
|
|
Shares
Subject to Options |
|
Weighted
Average Exercise Price per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding, October 2, 2016
|
31.3
|
|
|
$
|
30.59
|
|
|
5.8
|
|
$
|
771
|
|
Granted
|
7.1
|
|
|
56.12
|
|
|
|
|
|
|||
Exercised
|
(5.3
|
)
|
|
23.16
|
|
|
|
|
|
|||
Expired/forfeited
|
(1.7
|
)
|
|
51.13
|
|
|
|
|
|
|||
Outstanding, October 1, 2017
|
31.4
|
|
|
36.51
|
|
|
5.8
|
|
589
|
|
||
Exercisable, October 1, 2017
|
19.7
|
|
|
26.42
|
|
|
4.2
|
|
552
|
|
||
Vested and expected to vest, October 1, 2017
|
30.0
|
|
|
35.60
|
|
|
5.6
|
|
587
|
|
|
Number
of Shares |
|
Weighted
Average Grant Date Fair Value per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Nonvested, October 2, 2016
|
8.3
|
|
|
$
|
46.15
|
|
|
0.9
|
|
$
|
448
|
|
Granted
|
5.1
|
|
|
54.30
|
|
|
|
|
|
|||
Vested
|
(4.3
|
)
|
|
42.09
|
|
|
|
|
|
|||
Forfeited/canceled
|
(1.5
|
)
|
|
51.05
|
|
|
|
|
|
|||
Nonvested, October 1, 2017
|
7.6
|
|
|
52.06
|
|
|
0.9
|
|
410
|
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
United States
|
$
|
3,393.0
|
|
|
$
|
3,415.7
|
|
|
$
|
2,837.2
|
|
Foreign
|
924.5
|
|
|
782.9
|
|
|
1,065.8
|
|
|||
Total earnings before income taxes
|
$
|
4,317.5
|
|
|
$
|
4,198.6
|
|
|
$
|
3,903.0
|
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Current taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
931.0
|
|
|
$
|
704.1
|
|
|
$
|
801.0
|
|
U.S. state and local
|
170.8
|
|
|
166.5
|
|
|
150.1
|
|
|||
Foreign
|
216.6
|
|
|
218.5
|
|
|
172.2
|
|
|||
Total current taxes
|
1,318.4
|
|
|
1,089.1
|
|
|
1,123.3
|
|
|||
Deferred taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
121.2
|
|
|
351.3
|
|
|
56.5
|
|
|||
U.S. state and local
|
14.2
|
|
|
25.8
|
|
|
4.0
|
|
|||
Foreign
|
(21.2
|
)
|
|
(86.5
|
)
|
|
(40.1
|
)
|
|||
Total deferred taxes
|
114.2
|
|
|
290.6
|
|
|
20.4
|
|
|||
Total income tax expense
|
$
|
1,432.6
|
|
|
$
|
1,379.7
|
|
|
$
|
1,143.7
|
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|||
Statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net of federal tax benefit
|
2.8
|
|
|
3.0
|
|
|
2.8
|
|
Benefits and taxes related to foreign operations
|
(2.8
|
)
|
|
(2.2
|
)
|
|
(2.1
|
)
|
Domestic production activity deduction
|
(1.8
|
)
|
|
(1.9
|
)
|
|
(2.2
|
)
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
Other, net
|
—
|
|
|
(1.0
|
)
|
|
(0.5
|
)
|
Effective tax rate
|
33.2
|
%
|
|
32.9
|
%
|
|
29.3
|
%
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
||||
Deferred tax assets:
|
|
|
|
||||
Property, plant and equipment
|
$
|
71.3
|
|
|
$
|
56.8
|
|
Accrued occupancy costs
|
118.0
|
|
|
104.5
|
|
||
Accrued compensation and related costs
|
95.0
|
|
|
88.6
|
|
||
Stored value card liability
|
130.7
|
|
|
124.2
|
|
||
Stock-based compensation
|
125.9
|
|
|
138.3
|
|
||
Net operating losses
|
80.8
|
|
|
79.0
|
|
||
Litigation charge
|
792.0
|
|
|
862.3
|
|
||
Other
|
180.8
|
|
|
197.4
|
|
||
Total
|
$
|
1,594.5
|
|
|
$
|
1,651.1
|
|
Valuation allowance
|
(80.1
|
)
|
|
(70.3
|
)
|
||
Total deferred tax asset, net of valuation allowance
|
$
|
1,514.4
|
|
|
$
|
1,580.8
|
|
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(477.2
|
)
|
|
(445.7
|
)
|
||
Intangible assets and goodwill
|
(159.0
|
)
|
|
(175.9
|
)
|
||
Other
|
(89.1
|
)
|
|
(88.5
|
)
|
||
Total
|
(725.3
|
)
|
|
(710.1
|
)
|
||
Net deferred tax asset
|
$
|
789.1
|
|
|
$
|
870.7
|
|
Reported as:
|
|
|
|
||||
Deferred income tax assets
|
795.4
|
|
|
885.4
|
|
||
Deferred income tax liabilities (included in Other long-term liabilities)
|
(6.3
|
)
|
|
(14.7
|
)
|
||
Net deferred tax asset
|
$
|
789.1
|
|
|
$
|
870.7
|
|
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Beginning balance
|
$
|
146.5
|
|
|
$
|
150.4
|
|
|
$
|
112.7
|
|
Increase related to prior year tax positions
|
10.4
|
|
|
—
|
|
|
7.9
|
|
|||
Decrease related to prior year tax positions
|
—
|
|
|
(23.6
|
)
|
|
(0.9
|
)
|
|||
Increase related to current year tax positions
|
41.3
|
|
|
33.7
|
|
|
32.0
|
|
|||
Decrease related to current year tax positions
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|||
Decreases related to settlements with taxing authorities
|
—
|
|
|
(3.1
|
)
|
|
(0.7
|
)
|
|||
Decrease related to lapsing of statute of limitations
|
(1.3
|
)
|
|
(10.9
|
)
|
|
—
|
|
|||
Ending balance
|
$
|
196.9
|
|
|
$
|
146.5
|
|
|
$
|
150.4
|
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Net earnings attributable to Starbucks
|
$
|
2,884.7
|
|
|
$
|
2,817.7
|
|
|
$
|
2,757.4
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,449.5
|
|
|
1,471.6
|
|
|
1,495.9
|
|
|||
Dilutive effect of outstanding common stock options and RSUs
|
12.0
|
|
|
15.1
|
|
|
17.5
|
|
|||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,461.5
|
|
|
1,486.7
|
|
|
1,513.4
|
|
|||
EPS — basic
|
$
|
1.99
|
|
|
$
|
1.91
|
|
|
$
|
1.84
|
|
EPS — diluted
|
$
|
1.97
|
|
|
$
|
1.90
|
|
|
$
|
1.82
|
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|||||||||||||||
Beverage
|
$
|
12,915.0
|
|
|
58
|
%
|
|
$
|
12,383.4
|
|
|
58
|
%
|
|
$
|
11,115.4
|
|
|
58
|
%
|
Food
|
3,832.1
|
|
|
17
|
%
|
|
3,495.0
|
|
|
16
|
%
|
|
3,085.3
|
|
|
16
|
%
|
|||
Packaged and single-serve coffees and teas
|
2,883.6
|
|
|
13
|
%
|
|
2,866.0
|
|
|
14
|
%
|
|
2,619.9
|
|
|
14
|
%
|
|||
Other
(1)
|
2,756.1
|
|
|
12
|
%
|
|
2,571.5
|
|
|
12
|
%
|
|
2,342.1
|
|
|
12
|
%
|
|||
Total
|
$
|
22,386.8
|
|
|
100
|
%
|
|
$
|
21,315.9
|
|
|
100
|
%
|
|
$
|
19,162.7
|
|
|
100
|
%
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Net revenues:
|
|
|
|
|
|
||||||
United States
|
$
|
16,527.1
|
|
|
$
|
15,774.8
|
|
|
$
|
14,123.7
|
|
Other countries
|
5,859.7
|
|
|
5,541.1
|
|
|
5,039.0
|
|
|||
Total
|
$
|
22,386.8
|
|
|
$
|
21,315.9
|
|
|
$
|
19,162.7
|
|
|
|
|
|
|
|
||||||
Long-lived assets
(1)
:
|
|
|
|
|
|
||||||
United States
|
$
|
5,848.3
|
|
|
$
|
6,012.8
|
|
|
$
|
5,795.2
|
|
Other countries
|
3,234.0
|
|
|
3,541.8
|
|
|
2,639.9
|
|
|||
Total
|
$
|
9,082.3
|
|
|
$
|
9,554.6
|
|
|
$
|
8,435.1
|
|
(
in millions
)
|
Americas
|
|
China /
Asia Pacific
|
|
EMEA
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
Fiscal 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
15,652.7
|
|
|
$
|
3,240.2
|
|
|
$
|
1,013.7
|
|
|
$
|
2,008.6
|
|
|
$
|
471.6
|
|
|
$
|
22,386.8
|
|
Depreciation and amortization expenses
|
615.0
|
|
|
202.2
|
|
|
31.3
|
|
|
2.2
|
|
|
10.1
|
|
|
860.8
|
|
||||||
Income from equity investees
|
—
|
|
|
197.0
|
|
|
—
|
|
|
194.4
|
|
|
—
|
|
|
391.4
|
|
||||||
Operating income/(loss)
|
3,663.2
|
|
|
765.0
|
|
|
116.1
|
|
|
893.4
|
|
|
(174.3
|
)
|
|
5,263.4
|
|
||||||
Total assets
|
3,327.2
|
|
|
2,770.9
|
|
|
273.8
|
|
|
114.0
|
|
|
771.9
|
|
|
7,257.8
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
14,795.4
|
|
|
$
|
2,938.8
|
|
|
$
|
1,124.9
|
|
|
$
|
1,932.5
|
|
|
$
|
524.3
|
|
|
$
|
21,315.9
|
|
Depreciation and amortization expenses
|
590.1
|
|
|
180.6
|
|
|
40.8
|
|
|
2.8
|
|
|
13.3
|
|
|
827.6
|
|
||||||
Income from equity investees
|
—
|
|
|
150.1
|
|
|
1.5
|
|
|
166.6
|
|
|
—
|
|
|
318.2
|
|
||||||
Operating income/(loss)
|
3,742.0
|
|
|
631.6
|
|
|
151.6
|
|
|
807.3
|
|
|
(38.4
|
)
|
|
5,294.1
|
|
||||||
Total assets
|
3,424.6
|
|
|
2,740.2
|
|
|
552.1
|
|
|
67.1
|
|
|
861.1
|
|
|
7,645.1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
13,293.4
|
|
|
$
|
2,395.9
|
|
|
$
|
1,216.7
|
|
|
$
|
1,730.9
|
|
|
$
|
525.8
|
|
|
$
|
19,162.7
|
|
Depreciation and amortization expenses
|
522.3
|
|
|
150.7
|
|
|
52.0
|
|
|
2.7
|
|
|
16.3
|
|
|
744.0
|
|
||||||
Income from equity investees
|
—
|
|
|
119.6
|
|
|
3.1
|
|
|
127.2
|
|
|
—
|
|
|
249.9
|
|
||||||
Operating income/(loss)
|
3,223.3
|
|
|
500.5
|
|
|
168.2
|
|
|
653.9
|
|
|
(24.8
|
)
|
|
4,521.1
|
|
||||||
Total assets
|
2,726.7
|
|
|
2,230.5
|
|
|
749.1
|
|
|
87.3
|
|
|
1,785.3
|
|
|
7,578.9
|
|
Fiscal Year Ended
|
Oct 1, 2017
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
||||||
Total segment operating income
|
$
|
5,263.4
|
|
|
$
|
5,294.1
|
|
|
$
|
4,521.1
|
|
Unallocated corporate operating expenses
|
(1,128.7
|
)
|
|
(1,122.2
|
)
|
|
(920.1
|
)
|
|||
Consolidated operating income
|
4,134.7
|
|
|
4,171.9
|
|
|
3,601.0
|
|
|||
Gain resulting from acquisition of joint venture
|
—
|
|
|
—
|
|
|
390.6
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
(61.1
|
)
|
|||
Interest income and other, net
|
275.3
|
|
|
108.0
|
|
|
43.0
|
|
|||
Interest expense
|
(92.5
|
)
|
|
(81.3
|
)
|
|
(70.5
|
)
|
|||
Earnings before income taxes
|
$
|
4,317.5
|
|
|
$
|
4,198.6
|
|
|
$
|
3,903.0
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
||||||||||
Fiscal 2017:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
5,732.9
|
|
|
$
|
5,294.0
|
|
|
$
|
5,661.5
|
|
|
$
|
5,698.3
|
|
|
$
|
22,386.8
|
|
Operating income
|
1,132.6
|
|
|
935.4
|
|
|
1,044.2
|
|
|
1,022.5
|
|
|
4,134.7
|
|
|||||
Net earnings attributable to Starbucks
|
751.8
|
|
|
652.8
|
|
|
691.6
|
|
|
788.5
|
|
|
2,884.7
|
|
|||||
EPS — diluted
|
0.51
|
|
|
0.45
|
|
|
0.47
|
|
|
0.54
|
|
|
1.97
|
|
|||||
Fiscal 2016
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
5,373.5
|
|
|
$
|
4,993.2
|
|
|
$
|
5,238.0
|
|
|
$
|
5,711.2
|
|
|
$
|
21,315.9
|
|
Operating income
|
1,058.0
|
|
|
864.2
|
|
|
1,022.3
|
|
|
1,227.5
|
|
|
4,171.9
|
|
|||||
Net earnings attributable to Starbucks
|
687.6
|
|
|
575.1
|
|
|
754.1
|
|
|
801.0
|
|
|
2,817.7
|
|
|||||
EPS — diluted
|
0.46
|
|
|
0.39
|
|
|
0.51
|
|
|
0.54
|
|
|
1.90
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
Item 13.
|
Certain Relationships, Related Transactions and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
•
|
Consolidated Statements of Earnings for the fiscal years ended
October 1, 2017
,
October 2, 2016
, and
September 27, 2015
;
|
•
|
Consolidated Statements of Comprehensive Income for the fiscal years ended
October 1, 2017
,
October 2, 2016
, and
September 27, 2015
;
|
•
|
Consolidated Balance Sheets as of
October 1, 2017
and
October 2, 2016
;
|
•
|
Consolidated Statements of Cash Flows for the fiscal years ended
October 1, 2017
,
October 2, 2016
, and
September 27, 2015
;
|
•
|
Consolidated Statements of Equity for the fiscal years ended
October 1, 2017
,
October 2, 2016
, and
September 27, 2015
;
|
•
|
Notes to Consolidated Financial Statements; and
|
•
|
Reports of Independent Registered Public Accounting Firm
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
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
|
|
|
||
|
|
S-3ASR
|
|
333-213645
|
|
9/15/2016
|
|
4.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
3/20/2017
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
3/20/2017
|
|
4.3
|
|
|
||
|
|
S-3ASR
|
|
333-190955
|
|
9/3/2013
|
|
4.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
9/6/2013
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
9/6/2013
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.3
|
|
|
||
|
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.4
|
|
|
|
|
|
8-K
|
|
0-20322
|
|
2/4/2016
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
8-K
|
|
0-20322
|
|
2/4/2016
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/16/2016
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/16/2016
|
|
4.5
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.2
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
8/1/2017
|
|
10.1
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/20/2001
|
|
10.5
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.4
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
2/4/2011
|
|
10.2
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.9
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.10
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.11
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/14/2006
|
|
10.12
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
10.4
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
2/10/2006
|
|
10.2
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
04/26/2016
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
5/2/2012
|
|
10.1
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.14
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
10-Q
|
|
0-20322
|
|
04/26/2016
|
|
10.2
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
04/26/2016
|
|
10.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
10/30/2017
|
|
10.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
10/30/2017
|
|
10.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
7/29/2016
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
5/8/2008
|
|
10.3
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.30
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.21
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.22
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
10-Q
|
|
0-20322
|
|
4/29/2014
|
|
10.3
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
10-Q
|
|
0-20322
|
|
2/2/2010
|
|
10.3
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/14/2014
|
|
10.33
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
1/29/2014
|
|
10.2
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
5/2/2017
|
|
10.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
9/6/2017
|
|
10.1
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
__
|
|
__
|
|
__
|
|
__
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
|
|
|
STARBUCKS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kevin R. Johnson
|
|
|
Kevin R. Johnson
president and chief executive officer
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
By:
|
|
/s/ Kevin R. Johnson
|
|
president and chief executive officer, director
(principal executive officer)
|
|
|
Kevin R. Johnson
|
|
|
|
|
|
|
|
By:
|
|
/s/ Scott Maw
|
|
executive vice president, chief financial officer
(principal financial officer and principal accounting officer)
|
|
|
Scott Maw
|
|
|
|
|
|
|
|
By:
|
|
/s/ Howard Schultz
|
|
executive chairman
|
|
|
Howard Schultz
|
|
|
|
|
|
|
|
By:
|
|
/s/ William W. Bradley
|
|
director
|
|
|
William W. Bradley
|
|
|
|
|
|
|
|
By:
|
|
/s/ Rosalind G. Brewer
|
|
director
|
|
|
Rosalind G. Brewer
|
|
|
|
|
|
|
|
By:
|
|
/s/ Mary N. Dillon
|
|
director
|
|
|
Mary N. Dillon
|
|
|
|
|
|
|
|
By:
|
|
/s/ Robert M. Gates
|
|
director
|
|
|
Robert M. Gates
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
By:
|
|
/s/ Mellody Hobson
|
|
director
|
|
|
Mellody Hobson
|
|
|
|
|
|
|
|
By:
|
|
/s/ Jørgen Vig Knudstorp
|
|
director
|
|
|
Jørgen Vig Knudstorp
|
|
|
|
|
|
|
|
By:
|
|
/s/ Satya Nadella
|
|
director
|
|
|
Satya Nadella
|
|
|
|
|
|
|
|
By:
|
|
/s/ Joshua Cooper Ramo
|
|
director
|
|
|
Joshua Cooper Ramo
|
|
|
|
|
|
|
|
By:
|
|
/s/ Clara Shih
|
|
director
|
|
|
Clara Shih
|
|
|
|
|
|
|
|
By:
|
|
/s/ Javier G. Teruel
|
|
director
|
|
|
Javier G. Teruel
|
|
|
|
|
|
|
|
By:
|
|
/s/ Myron E. Ullman, III
|
|
director
|
|
|
Myron E. Ullman, III
|
|
|
|
|
|
|
|
By:
|
|
/s/ Craig E. Weatherup
|
|
director
|
|
|
Craig E. Weatherup
|
|
|
Participant:
|
|
Number of Units:
|
|
Date of Grant:
|
|
Vesting Schedule:
|
|
(a)
|
withholding from the Participant’s wages or other cash compensation paid to the Participant by the Company and/or the Employer; or
|
(b)
|
withholding from proceeds of the sale of Shares issued in settlement of the vested Restricted Stock Units, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization without further consent), to the extent and in the manner permitted by all applicable securities laws, including making any necessary securities registration or taking any other necessary actions; or
|
(c)
|
withholding in whole Shares to be issued in settlement of the vested Restricted Stock Units based on the Fair Market Value of the underlying Shares on the date the withholding obligation arises, in an amount equal to the aggregate withholding obligation as determined by the Company and/or the Employer with respect to such Award, provided, however that if the Participant is a Section 16 officer of the Company under the Exchange Act, then the Company will withhold in Shares upon the relevant taxable or tax withholding event, as applicable, unless the use of such withholding method is problematic under applicable tax or securities law or has materially adverse accounting consequences,
|
(a)
|
the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;
|
(b)
|
the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units or other awards, or benefits in lieu of restricted stock units, even if restricted stock units have been granted in the past;
|
(c)
|
all decisions with respect to future restricted stock units or other awards, if any, will be at the sole discretion of the Company;
|
(d)
|
the Award and the Participant’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or service relationship with the Company, the Employer or any other Subsidiary or affiliate of the Company and shall not interfere with the ability of the Company, the Employer or any other Subsidiary or affiliate of the Company, as applicable, to terminate the Participant’s employment or service relationship, if any;
|
(e)
|
the Participant’s participation in the Plan is voluntary;
|
(f)
|
the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income from and value of same, are not intended to replace any pension rights or compensation;
|
(g)
|
the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income from and value of same, are not part of normal or expected compensation or salary for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service awards, pension or retirement or welfare benefits or similar mandatory payments;
|
(h)
|
unless otherwise agreed with the Company, the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income from and value of same, are not granted as consideration for, or in connection with, the service that the Participant may provide as a director of a Subsidiary or affiliate of the Company;
|
(i)
|
the future value of the Shares subject to the Restricted Stock Units is unknown, indeterminable, and cannot be predicted with certainty;
|
(j)
|
after termination of the Participant’s Active Status, the Participant is no longer eligible to receive any new restricted stock units under the Plan;
|
(k)
|
no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Stock Units resulting from termination of the Participant’s Active Status (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment or service contract, if any);
|
(l)
|
for purposes of the Restricted Stock Units, and notwithstanding anything to the contrary contained in the Plan, the Participant’s Active Status will be considered terminated as of the date the Participant is no longer actively providing services to the Company or one of its Subsidiaries or affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment or service contract, if any), and unless otherwise provided in this Agreement or the Plan, the Participant’s right to vest in the Restricted Stock Units under the Plan, if any, will terminate as of such date and will not be extended by any notice period (
e.g.
, the Participant’s period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment or service contract, if any); the Committee shall have the exclusive discretion to determine when the Participant’s Active Status for purposes of the Award is terminated (including whether the Participant may still be considered to be providing services while on a leave of absence);
|
(m)
|
unless otherwise provided in the Plan or by the Company in its discretion, the Restricted Stock Units and the benefits evidenced by this Agreement do not create any entitlement to have the Restricted Stock Units or any such benefits transferred to, or assumed by, another company nor be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Common Stock; and
|
(n)
|
the following provisions apply only if the Participant is providing services outside the United States:
|
|
STARBUCKS CORPORATION
|
|
|
By _________________________________
|
|
|
Its _________________________________
|
|
|
|
|
|
PARTICIPANT
|
|
|
Signature ____________________________
|
Optionee:
|
|
Number of Options:
|
|
Type of Option Grant:
|
Non-Qualified Stock Option
|
Exercise Price:
|
|
Date of Grant:
|
|
Term of Option:
|
10 years from Date of Grant
|
Vesting Schedule:
|
|
(a)
|
withholding from the Optionee’s wages or other cash compensation paid to the Optionee by the Company and/or the Employer; or
|
(b)
|
withholding from proceeds of the sale of Shares acquired upon exercise of the Options, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Optionee’s behalf pursuant to this authorization without further consent), to the extent and in the manner permitted by
|
(c)
|
withholding in whole Shares to be issued at exercise of the Options based on the Fair Market Value of the underlying Shares on the date the withholding obligation arises, in an amount equal to the aggregate withholding obligation as determined by the Company and/or the Employer with respect to such Options.
|
(a)
|
the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;
|
(b)
|
the grant of the Options is voluntary and occasional and does not create any contractual or other right to receive future grants of options or other awards, or benefits in lieu of options, even if options have been granted in the past;
|
(c)
|
all decisions with respect to future option or other grants, if any, will be at the sole discretion of the Company;
|
(d)
|
the Optionee’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or service relationship with the Company, the Employer or any other Subsidiary or affiliate of the Company and shall not interfere with the ability of the Company, the Employer or any other Subsidiary or affiliate of the Company, as applicable, to terminate his or her employment or service relationship, if any;
|
(e)
|
the Optionee is voluntarily participating in the Plan;
|
(f)
|
the Options and the Shares subject to the Options, and the income from and value of same, are not intended to replace any pension rights or compensation;
|
(g)
|
the Options and the Shares subject to the Options, and the income from and value of same, are not part of normal or expected compensation or salary for purposes of calculating any severance,
|
(h)
|
unless otherwise agreed with the Company, the Options and the Shares subject to the Options, and the income from and value of same, are not granted as consideration for, or in connection with, the service that the Optionee may provide as a director of a Subsidiary or affiliate of the Company;
|
(i)
|
the future value of the Shares subject to the Options is unknown, indeterminable, and cannot be predicted with certainty;
|
(j)
|
if the underlying Shares do not increase in value, the Options will have no value;
|
(k)
|
if the Optionee exercises the Option and acquires Shares, the value of such Shares may increase or decrease in value even below the Exercise Price;
|
(l)
|
after termination of the Optionee’s Active Status, the Optionee is no longer eligible to receive any new options under the Plan;
|
(m)
|
no claim or entitlement to compensation or damages shall arise from termination of the Options resulting from termination of the Optionee’s Active Status (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Optionee is employed or providing services or the terms of the Optionee’s employment or service contract, if any);
|
(n)
|
for purposes of the Options, and notwithstanding anything to the contrary contained in the Plan, the Optionee’s Active Status will be considered terminated as of the date the Optionee is no longer actively providing services to the Company or one of its Subsidiaries or affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Optionee is employed or providing services or the terms of the Optionee’s employment or service contract, if any), and, unless otherwise provided in this Agreement or the Plan, (i) the Optionee’s right to vest in the Options under the Plan, if any will terminate as of such date and will not be extended by any notice period (
e.g.
, the Optionee’s period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Optionee is employed or providing services or the terms of the Optionee’s employment or service contract, if any), and (ii) the period (if any) during which the Optionee may exercise the Options after termination of the Optionee’s Active Status will commence on such date and will not be extended by any notice period under employment laws in the jurisdiction where the Optionee is employed or providing services or the terms of the Optionee’s employment or service contract, if any; the Committee shall have the exclusive discretion to determine when the Optionee’s Active Status for purposes of the Option grant is terminated (including whether the Optionee may still be considered to be providing services while on a leave of absence);
|
(o)
|
unless otherwise provided in the Plan or by the Company in its discretion, the Option and the benefits evidenced by this Agreement do not create any entitlement to have the Option or any such benefits transferred to, or assumed by, another company nor be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Common Stock; and
|
(p)
|
the following provisions apply only if the Optionee is providing services outside the United States:
|
|
STARBUCKS CORPORATION
|
|
|
By _________________________________
|
|
|
Its _________________________________
|
|
|
|
|
|
OPTIONEE
|
|
|
Signature ____________________________
|
Partner Name:
|
|
Target Restricted Stock Units:
|
|
Date of Grant:
|
|
Performance Period:
|
|
(a)
|
withholding from the Participant’s wages or other cash compensation paid to the Participant by the Company and/or the Employer; or
|
(b)
|
withholding from proceeds of the sale of Shares issued in settlement of the vested Performance RSUs, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization without further consent), to the extent and in the manner permitted by all applicable securities laws, including making any necessary securities registration or taking any other necessary actions; or
|
(c)
|
withholding in whole Shares to be issued in settlement of the vested Performance RSUs based on the Fair Market Value of the underlying Shares on the date the withholding obligation arises in an amount equal to the aggregate withholding obligation as determined by the Company and/or the Employer with respect to such Award, provided, however that if the Participant is a Section 16 officer of the Company under the Exchange Act, then the Company will withhold in Shares upon the relevant taxable or tax withholding event, as applicable, unless the use of such withholding method is problematic under applicable tax or securities law or has materially adverse accounting consequences, in which case, the obligation for Tax-Related Items may be satisfied by one or a combination of methods (a) and (b) above.
|
(a)
|
the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time; to the extent permitted by the Plan;
|
(b)
|
the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units or other awards, or benefits in lieu of the Performance RSUs, even if restricted stock units have been granted in the past;
|
(c)
|
all decisions with respect to future restricted stock units or other awards, if any, will be at the sole discretion of the Company;
|
(d)
|
the Award and the Participant’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or service relationship with the Company, the Employer or any other Subsidiary or affiliate of the Company and shall not interfere with the ability of the Company, the Employer or any other Subsidiary or affiliate of the Company, as applicable, to terminate the Participant’s employment or service relationship, if any;
|
(e)
|
the Participant’s participation in the Plan is voluntary;
|
(f)
|
the Performance RSUs and the Shares subject to the Performance RSUs, and the income from and value of same, are not intended to replace any pension rights or compensation;
|
(g)
|
the Performance RSUs and the Shares subject to the Performance RSUs, and the income from and value of same, are not part of normal or expected compensation or salary for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service awards, pension or retirement or welfare benefits or similar mandatory payments;
|
(h)
|
unless otherwise agreed with the Company. the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income from and value of same, are not granted as consideration for, or in connection with, the service that the Participant may provide as a director of a Subsidiary or affiliate of the Company;
|
(i)
|
the future value of the Shares subject to the Performance RSUs is unknown, indeterminable, and cannot be predicted with certainty;
|
(j)
|
after termination of the Participant’s Active Status, the Participant is no longer eligible to receive any new restricted stock units under the Plan;
|
(k)
|
no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance RSUs resulting from termination of the Participant’s Active Status (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment or service contract, if any);
|
(l)
|
for purposes of the Performance RSUs, and notwithstanding anything to the contrary contained in the Plan, the Participant’s Active Status will be considered terminated as of the date the Participant is no longer actively providing services to the Company or one of its Subsidiaries or affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment or service contract, if any), and unless otherwise provided in this Agreement or the Plan, the Participant’s right to vest in the Performance RSUs under the Plan, if any, will terminate as of such date and will not be extended by any notice period (
e.g.
, the Participant’s period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment or service contract, if any); the Committee shall have the exclusive discretion to determine when the Participant’s Active Status for purposes of the Award is terminated (including whether the Participant may still be considered to be providing services while on a leave of absence);
|
(m)
|
unless otherwise provided in the Plan or by the Company in its discretion, the Performance RSUs and the benefits evidenced by this Agreement do not create any entitlement to have the Performance RSUs or any such benefits transferred to, or assumed by, another company nor be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Common Stock; and
|
(n)
|
the following provisions apply only if the Participant is providing services outside the United States:
|
|
STARBUCKS CORPORATION
|
|
|
By _________________________________
|
|
|
Its _________________________________
|
|
|
|
|
|
PARTICIPANT
|
|
|
Signature ____________________________
|
|
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
|
Sep 28,
2014 |
|
Sep 29,
2013 |
||||||||||
Fiscal year ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings/(loss)
(1)
|
|
$
|
4,317.5
|
|
|
$
|
4,198.6
|
|
|
$
|
3,903.0
|
|
|
$
|
3,159.7
|
|
|
$
|
(229.9
|
)
|
Income from equity investees
|
|
(391.4
|
)
|
|
(318.2
|
)
|
|
(249.9
|
)
|
|
(268.3
|
)
|
|
(251.4
|
)
|
|||||
Distributed income from equity investees
|
|
186.6
|
|
|
223.3
|
|
|
148.2
|
|
|
139.2
|
|
|
115.6
|
|
|||||
Amortization of capitalized interest
|
|
4.1
|
|
|
4.4
|
|
|
4.1
|
|
|
3.6
|
|
|
2.6
|
|
|||||
Fixed charges, excluding capitalized interest
|
|
477.5
|
|
|
366.2
|
|
|
326.5
|
|
|
310.1
|
|
|
237.7
|
|
|||||
Total earnings/(loss) available for fixed charges
|
|
$
|
4,594.3
|
|
|
$
|
4,474.3
|
|
|
$
|
4,131.9
|
|
|
$
|
3,344.3
|
|
|
$
|
(125.4
|
)
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and debt expense
(2)
|
|
$
|
93.6
|
|
|
$
|
82.2
|
|
|
$
|
74.2
|
|
|
$
|
70.2
|
|
|
$
|
38.5
|
|
Interest portion of rental expense
|
|
385.0
|
|
|
285.0
|
|
|
256.0
|
|
|
246
|
|
|
209.6
|
|
|||||
Total fixed charges
|
|
$
|
478.6
|
|
|
$
|
367.2
|
|
|
$
|
330.2
|
|
|
$
|
316.2
|
|
|
$
|
248.1
|
|
Ratio of earnings to fixed charges
(3)
|
|
9.6
|
|
|
12.2
|
|
|
12.5
|
|
|
10.6
|
|
|
—
|
|
Entity Name
|
|
Organized Under the Laws of:
|
AmRest Coffee s.r.o.
|
|
Czech Republic
|
AmRest Coffee Sp. z o. o.
|
|
Poland
|
AmRest Kavezo Kft.
|
|
Hungary
|
Bay Bread LLC (dba La Boulange)
|
|
Delaware
|
Beijing Starbucks Coffee Co., Ltd.
|
|
China
|
Chengdu Starbucks Coffee Company Limited
|
|
China
|
CHH Cafe LLC
|
|
Texas
|
CHH Holdings of Texas LLC
|
|
Texas
|
Coffee Concepts (Southern China) Limited
|
|
Hong Kong
|
Coffee House Holdings, Inc.
|
|
Washington
|
Conifer Ventures Co. Ltd
|
|
United Kingdom
|
Corporacion Starbucks Farmer Support Center Colombia
|
|
Colombia
|
Emerald City C.V.
|
|
Netherlands
|
Evolution Fresh, Inc.
|
|
Delaware
|
Farmer Support Center, Asociacion Civil
|
|
Mexico
|
Guangdong Starbucks Coffee Company Limited
|
|
China
|
High Grown Investment Group (Hong Kong) Ltd.
|
|
Hong Kong
|
Holding Company International Limited
|
|
United Kingdom
|
Hubei Starbucks Coffee Company Limited
|
|
China
|
Koffee Sirena LLC
|
|
Russia
|
North American Coffee Partnership
|
|
New York
|
Olympic Casualty Insurance Company
|
|
Vermont
|
President Coffee (Cayman) Holdings Ltd.
|
|
Cayman Islands
|
President Starbucks Coffee (Shanghai) Company Limited
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China
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President Starbucks Coffee Corporation
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Taiwan (Republic of China)
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Princi Global Limited
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United Kingdom
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Princi London Limited
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United Kingdom
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Princi Properties Limited
|
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United Kingdom
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Princi UK Limited
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United Kingdom
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Qingdao American Starbucks Coffee Company Limited
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China
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SBI Nevada, Inc.
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Nevada
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SCI Europe I, LLC
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Washington
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SCI Europe II, LLC
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Washington
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SCI Investment, Inc.
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Washington
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Seastar Colombia Supply Company S.A.S.
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Colombia
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Seattle Coffee Company
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Georgia
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Seattle’s Best Coffee LLC
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Washington
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Shaya Coffee Limited
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Cyprus
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Siren Retail Corporation
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Washington
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SR Holdings Corporation
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Washington
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SR2 Holdings Corporation
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Washington
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Starbucks (China) Company Limited
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China
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Starbucks (Shanghai) Coffee Company Limited
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China
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Starbucks (Shanghai) Supply Chain Co., Ltd.
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China
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Starbucks (Shanghai) Trade Company Limited
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China
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Starbucks AINI Coffee (Yunnan) Company Limited
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China
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Starbucks Asia Pacific Investment Holding II Limited
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Hong Kong
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Starbucks Asia Pacific Investment Holding III Limited
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Hong Kong
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Starbucks Asia Pacific Investment Holding Limited
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Hong Kong
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Starbucks Brasil Comércio de Cafés Ltda.
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Brazil
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Starbucks Capital Asset Leasing Company, LLC
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Delaware
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Starbucks Card Europe Limited
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United Kingdom
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Starbucks Coffee (Dalian) Company Limited
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China
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Starbucks Coffee (Liaoning) Company Limited
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China
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Starbucks Coffee (Shenzhen) Company Limited
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China
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Starbucks Coffee (Thailand) Co., Ltd.
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Thailand
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Starbucks Coffee Agronomy Company S.R.L.
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Costa Rica
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Starbucks Coffee Asia Pacific Limited
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Hong Kong
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Starbucks Coffee Austria GmbH
|
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Austria
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Starbucks Coffee Canada, Inc.
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Canada
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Starbucks Coffee Company (Australia) Pty Ltd
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Australia
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Starbucks Coffee Company (UK) Limited
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United Kingdom
|
Starbucks Coffee Development (Yunnan) Company Limited
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China
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Starbucks Coffee EMEA B.V.
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Netherlands
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Starbucks Coffee France S.A.S.
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France
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Starbucks Coffee Holdings (UK) Limited
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United Kingdom
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Starbucks Coffee International, Inc.
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Washington
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Starbucks Coffee Japan, Ltd.
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Japan
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Starbucks Coffee Korea Co., Ltd.
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South Korea
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Starbucks Coffee Netherlands B.V.
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Netherlands
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Starbucks Coffee Switzerland A.G.
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Switzerland
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Starbucks Coffee Trading Company Sarl
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Switzerland
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Starbucks EMEA Holdings Ltd
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United Kingdom
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Starbucks EMEA Investment Ltd
|
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United Kingdom
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Starbucks EMEA Ltd
|
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United Kingdom
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Starbucks Farmer Support Center Rwanda Ltd
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Rwanda
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Starbucks Farmer Support Center Tanzania Limited
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Tanzania
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Starbucks Holding Company Pte. Ltd.
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Singapore
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Starbucks Holding Company
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Washington
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Starbucks International (Holdings) Ltd
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United Kingdom
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Starbucks Italy S.r.l.
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Italy
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Starbucks Manufacturing Corporation
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Washington
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Starbucks Manufacturing EMEA B.V.
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Netherlands
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Starbucks New Venture Company
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Washington
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Starbucks Singapore Investment Pte. Ltd.
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Singapore
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Starbucks Switzerland Austria Holdings B.V.
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Netherlands
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Starbucks Trading, G.K.
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Japan
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Tata Starbucks Private Limited
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India
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Teavana Puerto Rico, LLC
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Delaware
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The New French Bakery, Inc.
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California
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Torrefazione Italia LLC
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Washington
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Torz and Macatonia Limited
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United Kingdom
|
Xi’an Starbucks Coffee Company Limited
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China
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1.
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I have reviewed this Annual Report on Form 10-K for the fiscal year ended
October 1, 2017
of Starbucks Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(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
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(b)
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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.
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|
|
/s/ Kevin R. Johnson
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|
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Kevin R. Johnson
|
|
|
president and chief executive officer
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1.
|
I have reviewed this Annual Report on Form 10-K for the fiscal year ended
October 1, 2017
of Starbucks Corporation;
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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
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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
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(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(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
|