Washington
|
91-1325671
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(IRS Employer
Identification No.)
|
Title
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, par value $0.001 per share
|
SBUX
|
NASDAQ Global Select Market
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
Shares Outstanding as of July 24, 2019
|
1,197.0 million
|
|
|
|
PART I. FINANCIAL INFORMATION
|
||
|
|
|
Item 1
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
|
||
PART II. OTHER INFORMATION
|
||
|
|
|
Item 1
|
||
Item 1A
|
||
Item 2
|
||
Item 6
|
||
Item 1.
|
Financial Statements
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||||
Company-operated stores
|
$
|
5,535.0
|
|
|
$
|
5,060.4
|
|
|
$
|
16,064.3
|
|
|
$
|
14,630.3
|
|
Licensed stores
|
725.0
|
|
|
660.6
|
|
|
2,140.3
|
|
|
1,968.6
|
|
||||
Other
|
563.0
|
|
|
589.3
|
|
|
1,557.0
|
|
|
1,817.0
|
|
||||
Total net revenues
|
6,823.0
|
|
|
6,310.3
|
|
|
19,761.6
|
|
|
18,415.9
|
|
||||
Cost of sales including occupancy costs
|
2,808.6
|
|
|
2,553.4
|
|
|
8,171.1
|
|
|
7,569.8
|
|
||||
Store operating expenses
|
2,018.5
|
|
|
1,825.0
|
|
|
5,961.2
|
|
|
5,351.6
|
|
||||
Other operating expenses
|
89.6
|
|
|
132.3
|
|
|
265.2
|
|
|
382.5
|
|
||||
Depreciation and amortization expenses
|
343.1
|
|
|
330.0
|
|
|
1,032.5
|
|
|
920.4
|
|
||||
General and administrative expenses
|
480.2
|
|
|
485.9
|
|
|
1,419.2
|
|
|
1,299.0
|
|
||||
Restructuring and impairments
|
37.7
|
|
|
16.9
|
|
|
123.9
|
|
|
179.2
|
|
||||
Total operating expenses
|
5,777.7
|
|
|
5,343.5
|
|
|
16,973.1
|
|
|
15,702.5
|
|
||||
Income from equity investees
|
76.0
|
|
|
71.4
|
|
|
206.1
|
|
|
213.5
|
|
||||
Operating income
|
1,121.3
|
|
|
1,038.2
|
|
|
2,994.6
|
|
|
2,926.9
|
|
||||
Gain resulting from acquisition of joint venture
|
—
|
|
|
2.5
|
|
|
—
|
|
|
1,376.4
|
|
||||
Net gain resulting from divestiture of certain operations
|
601.8
|
|
|
—
|
|
|
622.8
|
|
|
496.3
|
|
||||
Interest income and other, net
|
40.2
|
|
|
31.5
|
|
|
80.2
|
|
|
155.2
|
|
||||
Interest expense
|
(86.4
|
)
|
|
(45.4
|
)
|
|
(235.3
|
)
|
|
(106.4
|
)
|
||||
Earnings before income taxes
|
1,676.9
|
|
|
1,026.8
|
|
|
3,462.3
|
|
|
4,848.4
|
|
||||
Income tax expense
|
303.7
|
|
|
174.8
|
|
|
670.1
|
|
|
1,086.5
|
|
||||
Net earnings including noncontrolling interests
|
1,373.2
|
|
|
852.0
|
|
|
2,792.2
|
|
|
3,761.9
|
|
||||
Net earnings/(loss) attributable to noncontrolling interests
|
0.4
|
|
|
(0.5
|
)
|
|
(4.2
|
)
|
|
(0.9
|
)
|
||||
Net earnings attributable to Starbucks
|
$
|
1,372.8
|
|
|
$
|
852.5
|
|
|
$
|
2,796.4
|
|
|
$
|
3,762.8
|
|
Earnings per share - basic
|
$
|
1.13
|
|
|
$
|
0.62
|
|
|
$
|
2.27
|
|
|
$
|
2.69
|
|
Earnings per share - diluted
|
$
|
1.12
|
|
|
$
|
0.61
|
|
|
$
|
2.25
|
|
|
$
|
2.67
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,211.0
|
|
|
1,377.1
|
|
|
1,230.8
|
|
|
1,397.7
|
|
||||
Diluted
|
1,223.0
|
|
|
1,388.5
|
|
|
1,242.4
|
|
|
1,409.9
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||
Net earnings including noncontrolling interests
|
$
|
1,373.2
|
|
|
$
|
852.0
|
|
|
$
|
2,792.2
|
|
|
$
|
3,761.9
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains/(losses) on available-for-sale debt securities
|
3.7
|
|
|
(0.5
|
)
|
|
9.6
|
|
|
(6.5
|
)
|
||||
Tax (expense)/benefit
|
(0.8
|
)
|
|
0.1
|
|
|
(2.1
|
)
|
|
1.8
|
|
||||
Unrealized gains/(losses) on cash flow hedging instruments
|
(3.2
|
)
|
|
46.0
|
|
|
(24.7
|
)
|
|
0.6
|
|
||||
Tax (expense)/benefit
|
0.6
|
|
|
(10.4
|
)
|
|
5.9
|
|
|
(1.2
|
)
|
||||
Unrealized gains/(losses) on net investment hedging instruments
|
(21.1
|
)
|
|
32.4
|
|
|
(40.1
|
)
|
|
(11.8
|
)
|
||||
Tax (expense)/benefit
|
5.3
|
|
|
(8.3
|
)
|
|
10.2
|
|
|
2.8
|
|
||||
Translation adjustment and other
|
(64.9
|
)
|
|
(281.9
|
)
|
|
15.0
|
|
|
(70.3
|
)
|
||||
Tax (expense)/benefit
|
—
|
|
|
1.3
|
|
|
1.4
|
|
|
3.5
|
|
||||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale debt securities, hedging instruments, and translation adjustment
|
3.2
|
|
|
(17.5
|
)
|
|
5.5
|
|
|
38.0
|
|
||||
Tax expense/(benefit)
|
(0.3
|
)
|
|
3.2
|
|
|
0.6
|
|
|
(4.0
|
)
|
||||
Other comprehensive income/(loss)
|
(77.5
|
)
|
|
(235.6
|
)
|
|
(18.7
|
)
|
|
(47.1
|
)
|
||||
Comprehensive income including noncontrolling interests
|
1,295.7
|
|
|
616.4
|
|
|
2,773.5
|
|
|
3,714.8
|
|
||||
Comprehensive income/(loss) attributable to noncontrolling interests
|
0.4
|
|
|
(0.5
|
)
|
|
(4.2
|
)
|
|
(0.9
|
)
|
||||
Comprehensive income attributable to Starbucks
|
$
|
1,295.3
|
|
|
$
|
616.9
|
|
|
$
|
2,777.7
|
|
|
$
|
3,715.7
|
|
|
Jun 30,
2019 |
|
Sep 30,
2018 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,763.3
|
|
|
$
|
8,756.3
|
|
Short-term investments
|
72.1
|
|
|
181.5
|
|
||
Accounts receivable, net
|
790.6
|
|
|
693.1
|
|
||
Inventories
|
1,517.2
|
|
|
1,400.5
|
|
||
Prepaid expenses and other current assets
|
591.6
|
|
|
1,462.8
|
|
||
Total current assets
|
7,734.8
|
|
|
12,494.2
|
|
||
Long-term investments
|
222.6
|
|
|
267.7
|
|
||
Equity investments
|
340.3
|
|
|
334.7
|
|
||
Property, plant and equipment, net
|
6,187.8
|
|
|
5,929.1
|
|
||
Deferred income taxes, net
|
1,533.0
|
|
|
134.7
|
|
||
Other long-term assets
|
458.0
|
|
|
412.2
|
|
||
Other intangible assets
|
853.2
|
|
|
1,042.2
|
|
||
Goodwill
|
3,564.7
|
|
|
3,541.6
|
|
||
TOTAL ASSETS
|
$
|
20,894.4
|
|
|
$
|
24,156.4
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,145.4
|
|
|
$
|
1,179.3
|
|
Accrued liabilities
|
3,238.7
|
|
|
2,298.4
|
|
||
Insurance reserves
|
211.5
|
|
|
213.7
|
|
||
Current portion of deferred revenue
|
1,300.2
|
|
|
1,642.9
|
|
||
Current portion of long-term debt
|
—
|
|
|
349.9
|
|
||
Total current liabilities
|
5,895.8
|
|
|
5,684.2
|
|
||
Long-term liabilities:
|
|
|
|
||||
Long-term debt
|
11,159.1
|
|
|
9,090.2
|
|
||
Deferred revenue
|
6,717.9
|
|
|
6,775.7
|
|
||
Other long-term liabilities
|
1,440.6
|
|
|
1,430.5
|
|
||
Total liabilities
|
25,213.4
|
|
|
22,980.6
|
|
||
Shareholders’ equity/(deficit):
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,206.5 and 1,309.1 shares, respectively
|
1.2
|
|
|
1.3
|
|
||
Additional paid-in capital
|
41.1
|
|
|
41.1
|
|
||
Retained earnings/(deficit)
|
(4,013.9
|
)
|
|
1,457.4
|
|
||
Accumulated other comprehensive loss
|
(349.0
|
)
|
|
(330.3
|
)
|
||
Total shareholders’ equity/(deficit)
|
(4,320.6
|
)
|
|
1,169.5
|
|
||
Noncontrolling interests
|
1.6
|
|
|
6.3
|
|
||
Total equity/(deficit)
|
(4,319.0
|
)
|
|
1,175.8
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
|
$
|
20,894.4
|
|
|
$
|
24,156.4
|
|
|
Three Quarters Ended
|
||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
2,792.2
|
|
|
$
|
3,761.9
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
1,083.6
|
|
|
961.5
|
|
||
Deferred income taxes, net
|
(1,243.5
|
)
|
|
763.7
|
|
||
Income earned from equity method investees
|
(174.1
|
)
|
|
(167.2
|
)
|
||
Distributions received from equity method investees
|
163.7
|
|
|
171.7
|
|
||
Gain resulting from acquisition of joint venture
|
—
|
|
|
(1,376.4
|
)
|
||
Net gain resulting from divestiture of certain retail operations
|
(622.8
|
)
|
|
(496.3
|
)
|
||
Stock-based compensation
|
255.4
|
|
|
185.0
|
|
||
Goodwill impairments
|
10.5
|
|
|
28.5
|
|
||
Other
|
122.3
|
|
|
26.7
|
|
||
Cash provided by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(70.1
|
)
|
|
(14.9
|
)
|
||
Inventories
|
(140.5
|
)
|
|
(21.5
|
)
|
||
Prepaid expenses and other current assets
|
831.6
|
|
|
(694.3
|
)
|
||
Income taxes payable
|
1,045.4
|
|
|
198.7
|
|
||
Accounts payable
|
(15.1
|
)
|
|
72.4
|
|
||
Deferred revenue
|
(32.4
|
)
|
|
137.7
|
|
||
Other operating assets and liabilities
|
(67.4
|
)
|
|
(32.8
|
)
|
||
Net cash provided by operating activities
|
3,938.8
|
|
|
3,504.4
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of investments
|
(176.3
|
)
|
|
(69.5
|
)
|
||
Sales of investments
|
281.7
|
|
|
441.2
|
|
||
Maturities and calls of investments
|
57.5
|
|
|
40.6
|
|
||
Additions to property, plant and equipment
|
(1,280.7
|
)
|
|
(1,407.8
|
)
|
||
Acquisition of equity in joint venture, net of cash acquired
|
—
|
|
|
(1,311.3
|
)
|
||
Net proceeds from the divestiture of certain operations
|
684.2
|
|
|
608.2
|
|
||
Other
|
(72.9
|
)
|
|
1.9
|
|
||
Net cash used in investing activities
|
(506.5
|
)
|
|
(1,696.7
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from issuance of commercial paper
|
—
|
|
|
300.0
|
|
||
Proceeds from issuance of long-term debt
|
1,996.0
|
|
|
2,596.5
|
|
||
Repayments of long-term debt
|
(350.0
|
)
|
|
—
|
|
||
Proceeds from issuance of common stock
|
358.5
|
|
|
131.9
|
|
||
Cash dividends paid
|
(1,330.7
|
)
|
|
(1,260.2
|
)
|
||
Repurchase of common stock
|
(7,972.9
|
)
|
|
(4,061.9
|
)
|
||
Minimum tax withholdings on share-based awards
|
(106.1
|
)
|
|
(60.4
|
)
|
||
Other
|
(17.6
|
)
|
|
(13.6
|
)
|
||
Net cash used by financing activities
|
(7,422.8
|
)
|
|
(2,367.7
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(2.5
|
)
|
|
(10.2
|
)
|
||
Net decrease in cash and cash equivalents
|
(3,993.0
|
)
|
|
(570.2
|
)
|
||
CASH AND CASH EQUIVALENTS:
|
|
|
|
||||
Beginning of period
|
8,756.3
|
|
|
2,462.3
|
|
||
End of period
|
$
|
4,763.3
|
|
|
$
|
1,892.1
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest, net of capitalized interest
|
$
|
219.9
|
|
|
$
|
101.4
|
|
Income taxes, net of refunds
|
$
|
126.2
|
|
|
$
|
899.7
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained
Earnings/(Deficit) |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Shareholders’
Equity |
|
Noncontrolling
Interests |
|
Total
|
||||||||||||||
Balance, March 31, 2019
|
$
|
1.2
|
|
|
$
|
41.1
|
|
|
$
|
(4,807.7
|
)
|
|
$
|
(271.5
|
)
|
|
$
|
(5,036.9
|
)
|
|
$
|
1.7
|
|
|
$
|
(5,035.2
|
)
|
Net earnings
|
—
|
|
|
—
|
|
|
1,372.8
|
|
|
—
|
|
|
1,372.8
|
|
|
0.4
|
|
|
1,373.2
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(77.5
|
)
|
|
(77.5
|
)
|
|
—
|
|
|
(77.5
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
64.0
|
|
|
—
|
|
|
—
|
|
|
64.0
|
|
|
—
|
|
|
64.0
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
—
|
|
|
24.4
|
|
|
—
|
|
|
—
|
|
|
24.4
|
|
|
—
|
|
|
24.4
|
|
|||||||
Sale of common stock
|
—
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
8.6
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
(97.0
|
)
|
|
(144.1
|
)
|
|
—
|
|
|
(241.1
|
)
|
|
—
|
|
|
(241.1
|
)
|
|||||||
Cash dividends declared, $0.36 per share
|
—
|
|
|
—
|
|
|
(434.9
|
)
|
|
—
|
|
|
(434.9
|
)
|
|
—
|
|
|
(434.9
|
)
|
|||||||
Net distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||||||
Balance, June 30, 2019
|
$
|
1.2
|
|
|
$
|
41.1
|
|
|
$
|
(4,013.9
|
)
|
|
$
|
(349.0
|
)
|
|
$
|
(4,320.6
|
)
|
|
$
|
1.6
|
|
|
$
|
(4,319.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, April 1, 2018
|
$
|
1.4
|
|
|
$
|
41.1
|
|
|
$
|
4,635.8
|
|
|
$
|
32.9
|
|
|
$
|
4,711.2
|
|
|
$
|
6.5
|
|
|
$
|
4,717.7
|
|
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
852.5
|
|
|
—
|
|
|
852.5
|
|
|
(0.5
|
)
|
|
852.0
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(235.6
|
)
|
|
(235.6
|
)
|
|
—
|
|
|
(235.6
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
69.4
|
|
|
—
|
|
|
—
|
|
|
69.4
|
|
|
—
|
|
|
69.4
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
—
|
|
|
14.2
|
|
|
—
|
|
|
—
|
|
|
14.2
|
|
|
—
|
|
|
14.2
|
|
|||||||
Sale of common stock
|
—
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
8.6
|
|
|||||||
Repurchase of common stock
|
|
|
|
(92.2
|
)
|
|
(847.9
|
)
|
|
—
|
|
|
(940.1
|
)
|
|
—
|
|
|
(940.1
|
)
|
|||||||
Cash dividends declared, $0.36 per share
|
—
|
|
|
—
|
|
|
(489.5
|
)
|
|
—
|
|
|
(489.5
|
)
|
|
—
|
|
|
(489.5
|
)
|
|||||||
Balance, July 1, 2018
|
$
|
1.4
|
|
|
$
|
41.1
|
|
|
$
|
4,150.9
|
|
|
$
|
(202.7
|
)
|
|
$
|
3,990.7
|
|
|
$
|
6.0
|
|
|
$
|
3,996.7
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained
Earnings/(Deficit) |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Shareholders’
Equity |
|
Noncontrolling
Interests |
|
Total
|
||||||||||||||
Balance, September 30, 2018
|
$
|
1.3
|
|
|
$
|
41.1
|
|
|
$
|
1,457.4
|
|
|
$
|
(330.3
|
)
|
|
$
|
1,169.5
|
|
|
$
|
6.3
|
|
|
$
|
1,175.8
|
|
Cumulative effect of adoption of new accounting guidance
|
—
|
|
|
—
|
|
|
495.6
|
|
|
—
|
|
|
495.6
|
|
|
—
|
|
|
495.6
|
|
|||||||
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
2,796.4
|
|
|
—
|
|
|
2,796.4
|
|
|
(4.2
|
)
|
|
2,792.2
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.7
|
)
|
|
(18.7
|
)
|
|
—
|
|
|
(18.7
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
258.0
|
|
|
—
|
|
|
—
|
|
|
258.0
|
|
|
—
|
|
|
258.0
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
—
|
|
|
227.4
|
|
|
—
|
|
|
—
|
|
|
227.4
|
|
|
—
|
|
|
227.4
|
|
|||||||
Sale of common stock
|
—
|
|
|
25.0
|
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|
—
|
|
|
25.0
|
|
|||||||
Repurchase of common stock
|
(0.1
|
)
|
|
(510.4
|
)
|
|
(7,443.8
|
)
|
|
—
|
|
|
(7,954.3
|
)
|
|
—
|
|
|
(7,954.3
|
)
|
|||||||
Cash dividends declared, $1.08 per share
|
—
|
|
|
—
|
|
|
(1,319.5
|
)
|
|
—
|
|
|
(1,319.5
|
)
|
|
—
|
|
|
(1,319.5
|
)
|
|||||||
Net distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||||||
Balance, June 30, 2019
|
$
|
1.2
|
|
|
$
|
41.1
|
|
|
$
|
(4,013.9
|
)
|
|
$
|
(349.0
|
)
|
|
$
|
(4,320.6
|
)
|
|
$
|
1.6
|
|
|
$
|
(4,319.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, October 1, 2017
|
$
|
1.4
|
|
|
$
|
41.1
|
|
|
$
|
5,563.2
|
|
|
$
|
(155.6
|
)
|
|
$
|
5,450.1
|
|
|
$
|
6.9
|
|
|
$
|
5,457.0
|
|
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
3,762.8
|
|
|
—
|
|
|
3,762.8
|
|
|
(0.9
|
)
|
|
3,761.9
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(47.1
|
)
|
|
(47.1
|
)
|
|
—
|
|
|
(47.1
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
187.4
|
|
|
—
|
|
|
—
|
|
|
187.4
|
|
|
—
|
|
|
187.4
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
—
|
|
|
47.6
|
|
|
—
|
|
|
—
|
|
|
47.6
|
|
|
—
|
|
|
47.6
|
|
|||||||
Sale of common stock
|
—
|
|
|
23.9
|
|
|
—
|
|
|
—
|
|
|
23.9
|
|
|
—
|
|
|
23.9
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
(258.9
|
)
|
|
(3,852.6
|
)
|
|
—
|
|
|
(4,111.5
|
)
|
|
—
|
|
|
(4,111.5
|
)
|
|||||||
Cash dividends declared, $0.96 per share
|
—
|
|
|
—
|
|
|
(1,322.5
|
)
|
|
—
|
|
|
(1,322.5
|
)
|
|
—
|
|
|
(1,322.5
|
)
|
|||||||
Balance, July 1, 2018
|
$
|
1.4
|
|
|
$
|
41.1
|
|
|
$
|
4,150.9
|
|
|
$
|
(202.7
|
)
|
|
$
|
3,990.7
|
|
|
$
|
6.0
|
|
|
$
|
3,996.7
|
|
Note 1
|
||
Note 2
|
||
Note 3
|
||
Note 4
|
||
Note 5
|
||
Note 6
|
||
Note 7
|
||
Note 8
|
||
Note 9
|
||
Note 10
|
||
Note 11
|
||
Note 12
|
||
Note 13
|
||
Note 14
|
||
Note 15
|
Note 1:
|
Summary of Significant Accounting Policies
|
(in millions)
|
As reported
Sep 30, 2018
|
|
Revenue Recognition Adoption Impact
|
|
Adjusted
Oct 1, 2018
|
||||||
Deferred income taxes, net
|
$
|
134.7
|
|
|
$
|
(11.0
|
)
|
|
$
|
123.7
|
|
Current liabilities:
|
|
|
|
|
|
||||||
Stored value card liability and current portion of deferred revenue
|
1,642.9
|
|
|
(422.0
|
)
|
|
1,220.9
|
|
|||
Deferred revenue
|
6,775.7
|
|
|
64.0
|
|
|
6,839.7
|
|
|||
Other long-term liabilities
|
1,430.5
|
|
|
79.0
|
|
|
1,509.5
|
|
|||
Shareholders' equity:
|
|
|
|
|
|
||||||
Retained earnings
|
1,457.4
|
|
|
268.0
|
|
|
1,725.4
|
|
Note 2:
|
Revenue Recognition
|
Note 3:
|
Acquisitions, Divestitures and Strategic Alliance
|
Note 4:
|
Derivative Instruments
|
|
Net Gains/(Losses)
Included in AOCI
|
|
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
|
|
Outstanding Contract/Debt Remaining Maturity
(Months)
|
||||||||
|
Jun 30,
2019 |
|
Sep 30,
2018 |
|
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rates
|
$
|
3.0
|
|
|
$
|
24.7
|
|
|
$
|
2.4
|
|
|
0
|
Cross-currency swaps
|
(3.1
|
)
|
|
(12.6
|
)
|
|
—
|
|
|
65
|
|||
Foreign currency - other
|
6.2
|
|
|
5.8
|
|
|
3.6
|
|
|
36
|
|||
Coffee
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
30
|
|||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
16.0
|
|
|
16.0
|
|
|
—
|
|
|
0
|
|||
Foreign currency debt
|
(26.3
|
)
|
|
3.6
|
|
|
—
|
|
|
57
|
|
|
|
Quarter Ended
|
||||||||||||||
|
Location of gain/(loss)
|
|
Gains/(Losses)
Recognized in
OCI Before Reclassifications
|
|
Gains/(Losses) Reclassified from
AOCI to Earnings
|
||||||||||||
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
Interest expense
|
|
$
|
5.3
|
|
|
$
|
4.7
|
|
|
$
|
1.1
|
|
|
$
|
1.2
|
|
Cross-currency swaps
|
Interest expense
|
|
(5.8
|
)
|
|
19.7
|
|
|
0.1
|
|
|
0.1
|
|
||||
Interest income and other, net
|
|
|
|
(9.9
|
)
|
|
18.4
|
|
|||||||||
Foreign currency - other
|
Licensed stores revenues
|
|
(2.7
|
)
|
|
21.7
|
|
|
2.2
|
|
|
0.5
|
|
||||
Cost of sales including occupancy costs
|
|
|
|
1.4
|
|
|
(1.3
|
)
|
|||||||||
Coffee
|
Cost of sales including occupancy costs
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.5
|
)
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency debt
|
|
|
(21.1
|
)
|
|
32.4
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Quarters Ended
|
||||||||||||||
|
Location of gain/(loss)
|
|
Gains/(Losses)
Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from
AOCI to Earnings
|
||||||||||||
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
Interest expense
|
|
$
|
(25.3
|
)
|
|
$
|
1.5
|
|
|
$
|
3.9
|
|
|
$
|
3.6
|
|
Cross-currency swaps
|
Interest expense
|
|
(8.4
|
)
|
|
(16.4
|
)
|
|
(0.5
|
)
|
|
0.5
|
|
||||
Interest income and other, net
|
|
|
|
(19.7
|
)
|
|
(8.6
|
)
|
|||||||||
Foreign currency - other
|
Licensed stores revenues
|
|
9.0
|
|
|
15.6
|
|
|
4.9
|
|
|
(1.2
|
)
|
||||
Cost of sales including occupancy costs
|
|
|
|
3.6
|
|
|
(4.5
|
)
|
|||||||||
Coffee
|
Cost of sales including occupancy costs
|
|
—
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(7.3
|
)
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
||||
Foreign currency debt
|
|
|
(40.1
|
)
|
|
(11.7
|
)
|
|
—
|
|
|
—
|
|
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||||||||||
|
Location of gain/(loss) recognized in earnings
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|||||||||
Non-Designated Derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency - other
|
Interest income and other, net
|
|
$
|
(2.3
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(9.7
|
)
|
|
$
|
(2.4
|
)
|
Dairy
|
Interest income and other, net
|
|
0.3
|
|
|
0.1
|
|
|
(1.9
|
)
|
|
(1.9
|
)
|
||||
Diesel fuel and other commodities
|
Interest income and other, net
|
|
(0.8
|
)
|
|
2.0
|
|
|
(5.5
|
)
|
|
2.9
|
|
||||
Fair Value Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
Interest expense
|
|
15.0
|
|
|
(5.1
|
)
|
|
41.2
|
|
|
(28.5
|
)
|
||||
Long-term debt (hedged item)
|
Interest expense
|
|
(16.3
|
)
|
|
5.1
|
|
|
(44.8
|
)
|
|
28.5
|
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Interest rate swap
|
$
|
750
|
|
|
$
|
750
|
|
Cross-currency swaps
|
357
|
|
|
434
|
|
||
Foreign currency - other
|
1,162
|
|
|
914
|
|
||
Coffee
|
2
|
|
|
—
|
|
||
Dairy
|
5
|
|
|
16
|
|
||
Diesel fuel and other commodities
|
24
|
|
|
21
|
|
|
|
|
Derivative Assets
|
||||||
|
Balance Sheet Location
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Designated Derivative Instruments:
|
|
|
|
|
|
||||
Cross-currency swaps
|
Other long-term assets
|
|
$
|
—
|
|
|
$
|
5.8
|
|
Foreign currency - other
|
Prepaid expenses and other current assets
|
|
7.3
|
|
|
9.0
|
|
||
Other long-term assets
|
|
5.7
|
|
|
4.6
|
|
|||
Interest rate swap
|
Other long-term assets
|
|
4.6
|
|
|
—
|
|
||
Non-designated Derivative Instruments:
|
|
|
|
|
|
||||
Foreign currency
|
Prepaid expenses and other current assets
|
|
5.8
|
|
|
13.7
|
|
||
Dairy
|
Prepaid expenses and other current assets
|
|
0.1
|
|
|
0.2
|
|
||
Diesel fuel and other commodities
|
Prepaid expenses and other current assets
|
|
0.3
|
|
|
1.6
|
|
||
|
|
|
|
|
|
||||
|
|
|
Derivative Liabilities
|
||||||
|
Balance Sheet Location
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Designated Derivative Instruments:
|
|
|
|
|
|
||||
Cross-currency swaps
|
Other long-term liabilities
|
|
$
|
11.9
|
|
|
$
|
9.3
|
|
Foreign currency - other
|
Accrued liabilities
|
|
2.7
|
|
|
3.6
|
|
||
Other long-term liabilities
|
|
1.7
|
|
|
1.7
|
|
|||
Interest rate swap
|
Other long-term liabilities
|
|
—
|
|
|
32.5
|
|
||
Non-designated Derivative Instruments:
|
|
|
|
|
|
||||
Foreign currency
|
Accrued liabilities
|
|
6.2
|
|
|
2.5
|
|
||
Other long-term liabilities
|
|
0.6
|
|
|
—
|
|
|||
Dairy
|
Accrued liabilities
|
|
—
|
|
|
0.1
|
|
||
Diesel fuel and other commodities
|
Accrued liabilities
|
|
2.4
|
|
|
0.3
|
|
|
Carrying amount of hedged assets (liabilities)
|
|
Cumulative amount of fair value hedging adjustment included in the carrying amount
|
||||||||||||
|
Jun 30, 2019
|
|
Sep 30, 2018
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||||||
Location on the balance sheet
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
755.8
|
|
|
$
|
711.0
|
|
|
$
|
5.8
|
|
|
$
|
(39.0
|
)
|
Note 5:
|
Fair Value Measurements
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
June 30, 2019 |
|
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
|
$
|
4,763.3
|
|
|
$
|
4,763.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Corporate debt securities
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Total available-for-sale debt securities
|
5.3
|
|
|
—
|
|
|
5.3
|
|
|
—
|
|
||||
Marketable equity securities
|
66.8
|
|
|
66.8
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
72.1
|
|
|
66.8
|
|
|
5.3
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
13.5
|
|
|
0.1
|
|
|
13.4
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
101.6
|
|
|
—
|
|
|
101.6
|
|
|
—
|
|
||||
Auction rate securities
|
5.7
|
|
|
—
|
|
|
—
|
|
|
5.7
|
|
||||
U.S. government treasury securities
|
106.2
|
|
|
106.2
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
5.0
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
4.1
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
||||
Total long-term investments
|
222.6
|
|
|
106.2
|
|
|
110.7
|
|
|
5.7
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
10.3
|
|
|
—
|
|
|
10.3
|
|
|
—
|
|
||||
Total assets
|
$
|
5,081.8
|
|
|
$
|
4,936.4
|
|
|
$
|
139.7
|
|
|
$
|
5.7
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
11.3
|
|
|
$
|
0.6
|
|
|
$
|
10.7
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
14.2
|
|
|
—
|
|
|
14.2
|
|
|
—
|
|
||||
Total liabilities
|
$
|
25.5
|
|
|
$
|
0.6
|
|
|
$
|
24.9
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at September 30, 2018
|
|
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
|
$
|
8,756.3
|
|
|
$
|
8,756.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
8.4
|
|
|
—
|
|
|
8.4
|
|
|
—
|
|
||||
Corporate debt securities
|
91.8
|
|
|
—
|
|
|
91.8
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
||||
Total available-for-sale debt securities
|
106.2
|
|
|
—
|
|
|
106.2
|
|
|
—
|
|
||||
Marketable equity securities
|
75.3
|
|
|
75.3
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
181.5
|
|
|
75.3
|
|
|
106.2
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
24.5
|
|
|
1.2
|
|
|
23.3
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
5.9
|
|
|
—
|
|
|
5.9
|
|
|
—
|
|
||||
Corporate debt securities
|
114.5
|
|
|
—
|
|
|
114.5
|
|
|
—
|
|
||||
Auction rate securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Foreign government obligations
|
3.6
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
||||
U.S. government treasury securities
|
108.1
|
|
|
108.1
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
4.8
|
|
|
—
|
|
|
4.8
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
24.9
|
|
|
—
|
|
|
24.9
|
|
|
—
|
|
||||
Total long-term investments
|
267.7
|
|
|
108.1
|
|
|
153.7
|
|
|
5.9
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
10.4
|
|
|
—
|
|
|
10.4
|
|
|
—
|
|
||||
Total assets
|
$
|
9,240.4
|
|
|
$
|
8,940.9
|
|
|
$
|
293.6
|
|
|
$
|
5.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
6.5
|
|
|
$
|
0.4
|
|
|
$
|
6.1
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
43.5
|
|
|
—
|
|
|
43.5
|
|
|
—
|
|
||||
Total liabilities
|
$
|
50.0
|
|
|
$
|
0.4
|
|
|
$
|
49.6
|
|
|
$
|
—
|
|
Note 6:
|
Inventories (in millions):
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Coffee:
|
|
|
|
||||
Unroasted
|
$
|
696.8
|
|
|
$
|
588.6
|
|
Roasted
|
276.4
|
|
|
281.2
|
|
||
Other merchandise held for sale
|
252.2
|
|
|
273.1
|
|
||
Packaging and other supplies
|
291.8
|
|
|
257.6
|
|
||
Total
|
$
|
1,517.2
|
|
|
$
|
1,400.5
|
|
Note 7:
|
Supplemental Balance Sheet Information (in millions):
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Income tax receivable
|
$
|
107.5
|
|
|
$
|
955.4
|
|
Other prepaid expenses and current assets
|
484.1
|
|
|
507.4
|
|
||
Total prepaid expenses and current assets
|
$
|
591.6
|
|
|
$
|
1,462.8
|
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Land
|
$
|
46.8
|
|
|
$
|
46.8
|
|
Buildings
|
679.6
|
|
|
557.3
|
|
||
Leasehold improvements
|
7,702.6
|
|
|
7,372.8
|
|
||
Store equipment
|
2,533.9
|
|
|
2,400.2
|
|
||
Roasting equipment
|
763.0
|
|
|
658.8
|
|
||
Furniture, fixtures and other
|
1,786.5
|
|
|
1,659.3
|
|
||
Work in progress
|
342.6
|
|
|
501.9
|
|
||
Property, plant and equipment, gross
|
13,855.0
|
|
|
13,197.1
|
|
||
Accumulated depreciation
|
(7,667.2
|
)
|
|
(7,268.0
|
)
|
||
Property, plant and equipment, net
|
$
|
6,187.8
|
|
|
$
|
5,929.1
|
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Accrued compensation and related costs
|
$
|
636.9
|
|
|
$
|
656.8
|
|
Accrued occupancy costs
|
189.1
|
|
|
164.2
|
|
||
Accrued income and other taxes
|
1,265.1
|
|
|
286.6
|
|
||
Accrued dividends payable
|
434.3
|
|
|
445.4
|
|
||
Accrued capital and other operating expenditures
|
713.3
|
|
|
745.4
|
|
||
Total accrued liabilities
|
$
|
3,238.7
|
|
|
$
|
2,298.4
|
|
(in millions)
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||
Trade names, trademarks and patents
|
$
|
202.8
|
|
|
$
|
215.9
|
|
Other indefinite-lived intangible assets
|
—
|
|
|
15.1
|
|
||
Total indefinite-lived intangible assets
|
$
|
202.8
|
|
|
$
|
231.0
|
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
||||||||||||||||||||
(in millions)
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Acquired and reacquired rights
|
$
|
1,102.7
|
|
|
$
|
(496.1
|
)
|
|
$
|
606.6
|
|
|
$
|
1,081.7
|
|
|
$
|
(320.1
|
)
|
|
$
|
761.6
|
|
Acquired trade secrets and processes
|
27.6
|
|
|
(18.5
|
)
|
|
9.1
|
|
|
27.6
|
|
|
(16.5
|
)
|
|
11.1
|
|
||||||
Trade names, trademarks and patents
|
40.1
|
|
|
(22.0
|
)
|
|
18.1
|
|
|
33.0
|
|
|
(19.5
|
)
|
|
13.5
|
|
||||||
Licensing agreements
|
16.2
|
|
|
(11.6
|
)
|
|
4.6
|
|
|
14.3
|
|
|
(5.1
|
)
|
|
9.2
|
|
||||||
Other finite-lived intangible assets
|
22.7
|
|
|
(10.7
|
)
|
|
12.0
|
|
|
25.6
|
|
|
(9.8
|
)
|
|
15.8
|
|
||||||
Total finite-lived intangible assets
|
$
|
1,209.3
|
|
|
$
|
(558.9
|
)
|
|
$
|
650.4
|
|
|
$
|
1,182.2
|
|
|
$
|
(371.0
|
)
|
|
$
|
811.2
|
|
Fiscal Year Ending
|
|
||
2019 (excluding the three quarters ended June 30, 2019)
|
$
|
55.1
|
|
2020
|
220.4
|
|
|
2021
|
199.6
|
|
|
2022
|
166.5
|
|
|
2023
|
2.6
|
|
|
Thereafter
|
6.2
|
|
|
Total estimated future amortization expense
|
$
|
650.4
|
|
|
Americas
|
|
China/Asia Pacific
|
|
EMEA
|
|
Channel
Development |
|
Corporate and Other
|
|
Total
|
||||||||||||
Goodwill balance at September 30, 2018
|
$
|
497.4
|
|
|
$
|
2,986.6
|
|
|
$
|
11.3
|
|
|
$
|
34.7
|
|
|
$
|
11.6
|
|
|
$
|
3,541.6
|
|
Acquisition/(divestiture)
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
||||||
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.5
|
)
|
|
(10.5
|
)
|
||||||
Other
|
(0.4
|
)
|
|
39.6
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
39.1
|
|
||||||
Goodwill balance at June 30, 2019
|
$
|
497.0
|
|
|
$
|
3,020.7
|
|
|
$
|
11.3
|
|
|
$
|
34.7
|
|
|
$
|
1.0
|
|
|
$
|
3,564.7
|
|
Note 9:
|
Debt
|
|
Jun 30, 2019
|
|
Sep 30, 2018
|
|
Stated Interest Rate
|
Effective Interest Rate (1)
|
||||||||||||
Issuance
|
Amount
|
Estimated Fair Value
|
|
Amount
|
Estimated Fair Value
|
|
||||||||||||
2018 notes
|
$
|
—
|
|
$
|
—
|
|
|
$
|
350.0
|
|
$
|
350
|
|
|
2.000
|
%
|
2.012
|
%
|
2020 notes
|
500.0
|
|
499
|
|
|
500.0
|
|
490
|
|
|
2.200
|
%
|
2.228
|
%
|
||||
2021 notes
|
500.0
|
|
499
|
|
|
500.0
|
|
489
|
|
|
2.100
|
%
|
2.293
|
%
|
||||
2021 notes
|
250.0
|
|
249
|
|
|
250.0
|
|
244
|
|
|
2.100
|
%
|
1.600
|
%
|
||||
2022 notes
|
500.0
|
|
506
|
|
|
500.0
|
|
486
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
2023 notes (2)
|
750.0
|
|
789
|
|
|
750.0
|
|
759
|
|
|
3.850
|
%
|
2.859
|
%
|
||||
2023 notes
|
1,000.0
|
|
1,024
|
|
|
1,000.0
|
|
986
|
|
|
3.100
|
%
|
3.107
|
%
|
||||
2024 notes (3)
|
788.5
|
|
791
|
|
|
748.4
|
|
743
|
|
|
0.372
|
%
|
0.462
|
%
|
||||
2025 notes
|
1,250.0
|
|
1,334
|
|
|
1,250.0
|
|
1,249
|
|
|
3.800
|
%
|
3.721
|
%
|
||||
2026 notes
|
500.0
|
|
494
|
|
|
500.0
|
|
451
|
|
|
2.450
|
%
|
2.511
|
%
|
||||
2028 notes
|
600.0
|
|
630
|
|
|
600.0
|
|
576
|
|
|
3.500
|
%
|
3.529
|
%
|
||||
2028 notes
|
750.0
|
|
815
|
|
|
750.0
|
|
754
|
|
|
4.000
|
%
|
3.958
|
%
|
||||
2029 notes (4)
|
1,000.0
|
|
1,048
|
|
|
—
|
|
—
|
|
|
3.550
|
%
|
3.871
|
%
|
||||
2045 notes
|
350.0
|
|
368
|
|
|
350.0
|
|
330
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
2047 notes
|
500.0
|
|
489
|
|
|
500.0
|
|
438
|
|
|
3.750
|
%
|
3.765
|
%
|
||||
2048 notes
|
1,000.0
|
|
1,089
|
|
|
1,000.0
|
|
977
|
|
|
4.500
|
%
|
4.504
|
%
|
||||
2049 notes (4)
|
1,000.0
|
|
1,101
|
|
|
—
|
|
—
|
|
|
4.450
|
%
|
4.433
|
%
|
||||
Total
|
11,238.5
|
|
11,725
|
|
|
9,548.4
|
|
9,322
|
|
|
|
|
||||||
Aggregate debt issuance costs and unamortized premium/(discount), net
|
(85.2
|
)
|
|
|
(69.3
|
)
|
|
|
|
|
||||||||
Hedge accounting fair value adjustment (2)
|
5.8
|
|
|
|
(39.0
|
)
|
|
|
|
|
||||||||
Total
|
$
|
11,159.1
|
|
|
|
$
|
9,440.1
|
|
|
|
|
|
(1)
|
Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
|
(2)
|
Amount represents the change in fair value due to changes in benchmark interest rates related to our 2023 notes. Refer to Note 4, Derivative Instruments, for additional information on our interest rate swap designated as a fair value hedge.
|
(3)
|
Japanese yen-denominated long-term debt.
|
(4)
|
Issued in May 2019.
|
Fiscal Year
|
Total
|
||
2020
|
$
|
—
|
|
2021
|
1,250.0
|
|
|
2022
|
500.0
|
|
|
2023
|
1,000.0
|
|
|
2024
|
1,538.5
|
|
|
Thereafter
|
6,950.0
|
|
|
Total
|
$
|
11,238.5
|
|
Note 10:
|
Equity
|
Quarter Ended
|
Available-for-Sale Debt Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
0.1
|
|
|
$
|
4.3
|
|
|
$
|
5.5
|
|
|
$
|
(281.4
|
)
|
|
$
|
(271.5
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
2.9
|
|
|
(2.6
|
)
|
|
(15.8
|
)
|
|
(64.9
|
)
|
|
(80.4
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.2
|
|
|
4.4
|
|
|
—
|
|
|
(1.7
|
)
|
|
2.9
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
3.1
|
|
|
1.8
|
|
|
(15.8
|
)
|
|
(66.6
|
)
|
|
(77.5
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
3.2
|
|
|
$
|
6.1
|
|
|
$
|
(10.3
|
)
|
|
$
|
(348.0
|
)
|
|
$
|
(349.0
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
July 1, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(5.0
|
)
|
|
$
|
(10.7
|
)
|
|
$
|
(19.1
|
)
|
|
$
|
67.7
|
|
|
$
|
32.9
|
|
Net gains/(losses) recognized in OCI before reclassifications
|
(0.4
|
)
|
|
35.6
|
|
|
24.1
|
|
|
(280.6
|
)
|
|
(221.3
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.6
|
|
|
(14.9
|
)
|
|
—
|
|
|
—
|
|
|
(14.3
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
0.2
|
|
|
20.7
|
|
|
24.1
|
|
|
(280.6
|
)
|
|
(235.6
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(4.8
|
)
|
|
$
|
10.0
|
|
|
$
|
5.0
|
|
|
$
|
(212.9
|
)
|
|
$
|
(202.7
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Quarters Ended
|
Available-for-Sale Debt Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(4.9
|
)
|
|
$
|
17.7
|
|
|
$
|
19.6
|
|
|
$
|
(362.7
|
)
|
|
$
|
(330.3
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
7.5
|
|
|
(18.8
|
)
|
|
(29.9
|
)
|
|
16.4
|
|
|
(24.8
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.6
|
|
|
7.2
|
|
|
—
|
|
|
(1.7
|
)
|
|
6.1
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
8.1
|
|
|
(11.6
|
)
|
|
(29.9
|
)
|
|
14.7
|
|
|
(18.7
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
3.2
|
|
|
$
|
6.1
|
|
|
$
|
(10.3
|
)
|
|
$
|
(348.0
|
)
|
|
$
|
(349.0
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
July 1, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(2.5
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
14.0
|
|
|
$
|
(163.0
|
)
|
|
$
|
(155.6
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
(4.7
|
)
|
|
(0.6
|
)
|
|
(9.0
|
)
|
|
(66.8
|
)
|
|
(81.1
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
2.4
|
|
|
14.7
|
|
|
—
|
|
|
16.9
|
|
|
34.0
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(2.3
|
)
|
|
14.1
|
|
|
(9.0
|
)
|
|
(49.9
|
)
|
|
(47.1
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(4.8
|
)
|
|
$
|
10.0
|
|
|
$
|
5.0
|
|
|
$
|
(212.9
|
)
|
|
$
|
(202.7
|
)
|
Quarter Ended
|
|
|
|
|
|
|
||||
AOCI
Components |
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings |
||||||
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
||||||
Gains/(losses) on available-for-sale debt securities
|
|
$
|
0.2
|
|
|
$
|
(0.9
|
)
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
(5.1
|
)
|
|
18.4
|
|
|
|||
Translation adjustment
|
|
|
|
|
|
|
||||
Thailand
|
|
1.7
|
|
|
—
|
|
|
Net gain resulting from divestiture of certain operations
|
||
|
|
(3.2
|
)
|
|
17.5
|
|
|
Total before tax
|
||
|
|
0.3
|
|
|
(3.2
|
)
|
|
Tax (expense)/benefit
|
||
|
|
$
|
(2.9
|
)
|
|
$
|
14.3
|
|
|
Net of tax
|
Three Quarters Ended
|
|
|
|
|
|
|
||||
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
||||||
Gains/(losses) on available-for-sale debt securities
|
|
$
|
0.9
|
|
|
$
|
(3.3
|
)
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
(8.1
|
)
|
|
(17.5
|
)
|
|
|||
Translation adjustment
|
|
|
|
|
|
|
||||
Brazil
|
|
—
|
|
|
(24.1
|
)
|
|
Net gain resulting from divestiture of certain operations
|
||
East China joint venture
|
|
—
|
|
|
7.2
|
|
|
Gain resulting from acquisition of joint venture
|
||
Taiwan joint venture
|
|
—
|
|
|
1.4
|
|
|
Net gain resulting from divestiture of certain operations
|
||
Thailand
|
|
1.7
|
|
|
—
|
|
|
Net gain resulting from divestiture of certain operations
|
||
Other
|
|
—
|
|
|
(1.7
|
)
|
|
Interest income and other, net
|
||
|
|
(5.5
|
)
|
|
(38.0
|
)
|
|
Total before tax
|
||
|
|
(0.6
|
)
|
|
4.0
|
|
|
Tax (expense)/benefit
|
||
|
|
$
|
(6.1
|
)
|
|
$
|
(34.0
|
)
|
|
Net of tax
|
Note 11:
|
Employee Stock Plans
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Options
|
$
|
2.4
|
|
|
$
|
2.0
|
|
|
$
|
17.9
|
|
|
$
|
23.2
|
|
Restricted Stock Units (“RSUs”)
|
60.9
|
|
|
66.4
|
|
|
237.5
|
|
|
161.7
|
|
||||
Total stock-based compensation expense
|
$
|
63.3
|
|
|
$
|
68.4
|
|
|
$
|
255.4
|
|
|
$
|
184.9
|
|
|
Stock Options
|
|
RSUs
|
||||
Options outstanding/Nonvested RSUs, September 30, 2018
|
27.3
|
|
|
11.2
|
|
||
Granted
|
0.5
|
|
|
4.5
|
|
||
Options exercised/RSUs vested
|
(10.2
|
)
|
|
(4.4
|
)
|
||
Forfeited/expired
|
(0.9
|
)
|
|
(1.9
|
)
|
||
Options outstanding/Nonvested RSUs, June 30, 2019
|
16.7
|
|
|
9.4
|
|
||
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 30, 2019
|
$
|
6.4
|
|
|
$
|
215.2
|
|
Note 12:
|
Income Taxes
|
Note 13:
|
Earnings per Share
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Net earnings attributable to Starbucks
|
$
|
1,372.8
|
|
|
$
|
852.5
|
|
|
$
|
2,796.4
|
|
|
$
|
3,762.8
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,211.0
|
|
|
1,377.1
|
|
|
1,230.8
|
|
|
1,397.7
|
|
||||
Dilutive effect of outstanding common stock options and RSUs
|
12.0
|
|
|
11.4
|
|
|
11.6
|
|
|
12.2
|
|
||||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,223.0
|
|
|
1,388.5
|
|
|
1,242.4
|
|
|
1,409.9
|
|
||||
EPS — basic
|
$
|
1.13
|
|
|
$
|
0.62
|
|
|
$
|
2.27
|
|
|
$
|
2.69
|
|
EPS — diluted
|
$
|
1.12
|
|
|
$
|
0.61
|
|
|
$
|
2.25
|
|
|
$
|
2.67
|
|
Note 14:
|
Commitments and Contingencies
|
Note 15:
|
Segment Reporting
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||
|
Jun 30, 2019
|
|
Jul 1, 2018(1)
|
|
Jun 30, 2019
|
|
Jul 1, 2018(1)
|
||||||||||||||||||||
Beverage
|
$
|
4,122.1
|
|
|
60
|
%
|
|
$
|
3,766.2
|
|
|
60
|
%
|
|
$
|
11,814.2
|
|
|
60
|
%
|
|
$
|
10,705.2
|
|
|
58
|
%
|
Food
|
1,220.3
|
|
|
18
|
%
|
|
1,132.6
|
|
|
18
|
%
|
|
3,566.1
|
|
|
18
|
%
|
|
3,242.8
|
|
|
18
|
%
|
||||
Other(2)
|
1,480.6
|
|
|
22
|
%
|
|
1,411.5
|
|
|
22
|
%
|
|
4,381.3
|
|
|
22
|
%
|
|
4,467.9
|
|
|
24
|
%
|
||||
Total
|
$
|
6,823.0
|
|
|
100
|
%
|
|
$
|
6,310.3
|
|
|
100
|
%
|
|
$
|
19,761.6
|
|
|
100
|
%
|
|
$
|
18,415.9
|
|
|
100
|
%
|
|
Americas
|
|
China/
Asia Pacific
|
|
EMEA
|
|
Channel
Development
|
|
Corporate and Other
|
|
Total
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
4,671.8
|
|
|
$
|
1,336.9
|
|
|
$
|
231.7
|
|
|
$
|
533.3
|
|
|
$
|
49.3
|
|
|
$
|
6,823.0
|
|
Depreciation and amortization expenses
|
173.2
|
|
|
118.9
|
|
|
5.4
|
|
|
0.2
|
|
|
45.4
|
|
|
343.1
|
|
||||||
Income from equity investees
|
—
|
|
|
27.2
|
|
|
—
|
|
|
48.8
|
|
|
—
|
|
|
76.0
|
|
||||||
Operating income/(loss)
|
1,067.1
|
|
|
269.8
|
|
|
16.6
|
|
|
181.9
|
|
|
(414.1
|
)
|
|
1,121.3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
July 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues(1)
|
$
|
4,224.0
|
|
|
$
|
1,229.0
|
|
|
$
|
261.7
|
|
|
$
|
567.4
|
|
|
$
|
28.2
|
|
|
$
|
6,310.3
|
|
Depreciation and amortization expenses
|
159.3
|
|
|
120.7
|
|
|
8.0
|
|
|
0.2
|
|
|
41.8
|
|
|
330.0
|
|
||||||
Income from equity investees
|
—
|
|
|
23.5
|
|
|
—
|
|
|
47.9
|
|
|
—
|
|
|
71.4
|
|
||||||
Operating income/(loss)
|
906.8
|
|
|
234.1
|
|
|
29.2
|
|
|
232.8
|
|
|
(364.7
|
)
|
|
1,038.2
|
|
|
Americas
|
|
China/
Asia Pacific |
|
EMEA
|
|
Channel
Development |
|
Corporate and Other
|
|
Total
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
13,583.8
|
|
|
$
|
3,853.4
|
|
|
$
|
725.6
|
|
|
$
|
1,484.5
|
|
|
$
|
114.3
|
|
|
$
|
19,761.6
|
|
Depreciation and amortization expenses
|
509.6
|
|
|
357.2
|
|
|
20.1
|
|
|
12.6
|
|
|
133.0
|
|
|
1,032.5
|
|
||||||
Income from equity investees
|
—
|
|
|
75.7
|
|
|
—
|
|
|
130.4
|
|
|
—
|
|
|
206.1
|
|
||||||
Operating income/(loss)
|
2,978.0
|
|
|
722.9
|
|
|
40.8
|
|
|
506.6
|
|
|
(1,253.7
|
)
|
|
2,994.6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
July 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues(1)
|
$
|
12,478.0
|
|
|
$
|
3,259.1
|
|
|
$
|
780.8
|
|
|
$
|
1,758.0
|
|
|
$
|
140.0
|
|
|
$
|
18,415.9
|
|
Depreciation and amortization expenses
|
477.7
|
|
|
296.0
|
|
|
23.5
|
|
|
1.2
|
|
|
122.0
|
|
|
920.4
|
|
||||||
Income from equity investees
|
—
|
|
|
91.0
|
|
|
—
|
|
|
122.5
|
|
|
—
|
|
|
213.5
|
|
||||||
Operating income/(loss)
|
2,685.9
|
|
|
635.4
|
|
|
50.6
|
|
|
736.2
|
|
|
(1,181.2
|
)
|
|
2,926.9
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Quarter Ended Jun 30, 2019
|
|
Three Quarters Ended Jun 30, 2019
|
||||||||
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
|
Sales
Growth
|
|
Change in
Transactions
|
|
Change in
Ticket
|
Consolidated
|
6%
|
|
3%
|
|
3%
|
|
4%
|
|
1%
|
|
3%
|
Americas
|
7%
|
|
3%
|
|
4%
|
|
5%
|
|
1%
|
|
4%
|
China/Asia Pacific
|
5%
|
|
2%
|
|
3%
|
|
3%
|
|
1%
|
|
3%
|
EMEA(1)
|
3%
|
|
—%
|
|
3%
|
|
1%
|
|
—%
|
|
2%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
%
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
%
Change
|
||||||||||||||
Company-operated stores
|
$
|
5,535.0
|
|
|
$
|
5,060.4
|
|
|
$
|
474.6
|
|
|
9.4
|
%
|
|
$
|
16,064.3
|
|
|
$
|
14,630.3
|
|
|
$
|
1,434.0
|
|
|
9.8
|
%
|
Licensed stores
|
725.0
|
|
|
660.6
|
|
|
64.4
|
|
|
9.7
|
|
|
2,140.3
|
|
|
1,968.6
|
|
|
171.7
|
|
|
8.7
|
|
||||||
Other
|
563.0
|
|
|
589.3
|
|
|
(26.3
|
)
|
|
(4.5
|
)
|
|
1,557.0
|
|
|
1,817.0
|
|
|
(260.0
|
)
|
|
(14.3
|
)
|
||||||
Total net revenues
|
$
|
6,823.0
|
|
|
$
|
6,310.3
|
|
|
$
|
512.7
|
|
|
8.1
|
%
|
|
$
|
19,761.6
|
|
|
$
|
18,415.9
|
|
|
$
|
1,345.7
|
|
|
7.3
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||||||||||
|
|
|
|
|
|
|
As a % of Total
Net Revenues
|
|
|
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||||||||||||||
Cost of sales including occupancy costs
|
$
|
2,808.6
|
|
|
$
|
2,553.4
|
|
|
$
|
255.2
|
|
|
41.2
|
%
|
|
40.5
|
%
|
|
$
|
8,171.1
|
|
|
$
|
7,569.8
|
|
|
$
|
601.3
|
|
|
41.3
|
%
|
|
41.1
|
%
|
Store operating expenses
|
2,018.5
|
|
|
1,825.0
|
|
|
193.5
|
|
|
29.6
|
|
|
28.9
|
|
|
5,961.2
|
|
|
5,351.6
|
|
|
609.6
|
|
|
30.2
|
|
|
29.1
|
|
||||||
Other operating expenses
|
89.6
|
|
|
132.3
|
|
|
(42.7
|
)
|
|
1.3
|
|
|
2.1
|
|
|
265.2
|
|
|
382.5
|
|
|
(117.3
|
)
|
|
1.3
|
|
|
2.1
|
|
||||||
Depreciation and amortization expenses
|
343.1
|
|
|
330.0
|
|
|
13.1
|
|
|
5.0
|
|
|
5.2
|
|
|
1,032.5
|
|
|
920.4
|
|
|
112.1
|
|
|
5.2
|
|
|
5.0
|
|
||||||
General and administrative expenses
|
480.2
|
|
|
485.9
|
|
|
(5.7
|
)
|
|
7.0
|
|
|
7.7
|
|
|
1,419.2
|
|
|
1,299.0
|
|
|
120.2
|
|
|
7.2
|
|
|
7.1
|
|
||||||
Restructuring and impairments
|
37.7
|
|
|
16.9
|
|
|
20.8
|
|
|
0.6
|
|
|
0.3
|
|
|
123.9
|
|
|
179.2
|
|
|
(55.3
|
)
|
|
0.6
|
|
|
1.0
|
|
||||||
Total operating expenses
|
5,777.7
|
|
|
5,343.5
|
|
|
434.2
|
|
|
84.7
|
|
|
84.7
|
|
|
16,973.1
|
|
|
15,702.5
|
|
|
1,270.6
|
|
|
85.9
|
|
|
85.3
|
|
||||||
Income from equity investees
|
76.0
|
|
|
71.4
|
|
|
4.6
|
|
|
1.1
|
|
|
1.1
|
|
|
206.1
|
|
|
213.5
|
|
|
(7.4
|
)
|
|
1.0
|
|
|
1.2
|
|
||||||
Operating income
|
$
|
1,121.3
|
|
|
$
|
1,038.2
|
|
|
$
|
83.1
|
|
|
16.4
|
%
|
|
16.5
|
%
|
|
$
|
2,994.6
|
|
|
$
|
2,926.9
|
|
|
$
|
67.7
|
|
|
15.2
|
%
|
|
15.9
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
36.5
|
%
|
|
36.1
|
%
|
|
|
|
|
|
|
|
37.1
|
%
|
|
36.6
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||||||||||
|
|
|
|
|
|
|
As a % of Total
Net Revenues
|
|
|
|
|
|
|
|
As a % of Total
Net Revenues |
||||||||||||||||||||
Operating income
|
$
|
1,121.3
|
|
|
$
|
1,038.2
|
|
|
$
|
83.1
|
|
|
16.4
|
%
|
|
16.5
|
%
|
|
$
|
2,994.6
|
|
|
$
|
2,926.9
|
|
|
$
|
67.7
|
|
|
15.2
|
%
|
|
15.9
|
%
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
2.5
|
|
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,376.4
|
|
|
(1,376.4
|
)
|
|
—
|
|
|
7.5
|
|
||||||
Net gain resulting from divestiture of certain operations
|
601.8
|
|
|
—
|
|
|
601.8
|
|
|
8.8
|
|
|
—
|
|
|
622.8
|
|
|
496.3
|
|
|
126.5
|
|
|
3.2
|
|
|
2.7
|
|
||||||
Interest income and other, net
|
40.2
|
|
|
31.5
|
|
|
8.7
|
|
|
0.6
|
|
|
0.5
|
|
|
80.2
|
|
|
155.2
|
|
|
(75.0
|
)
|
|
0.4
|
|
|
0.8
|
|
||||||
Interest expense
|
(86.4
|
)
|
|
(45.4
|
)
|
|
(41.0
|
)
|
|
(1.3
|
)
|
|
(0.7
|
)
|
|
(235.3
|
)
|
|
(106.4
|
)
|
|
(128.9
|
)
|
|
(1.2
|
)
|
|
(0.6
|
)
|
||||||
Earnings before income taxes
|
1,676.9
|
|
|
1,026.8
|
|
|
650.1
|
|
|
24.6
|
|
|
16.3
|
|
|
3,462.3
|
|
|
4,848.4
|
|
|
(1,386.1
|
)
|
|
17.5
|
|
|
26.3
|
|
||||||
Income tax expense
|
303.7
|
|
|
174.8
|
|
|
128.9
|
|
|
4.5
|
|
|
2.8
|
|
|
670.1
|
|
|
1,086.5
|
|
|
(416.4
|
)
|
|
3.4
|
|
|
5.9
|
|
||||||
Net earnings including noncontrolling interests
|
1,373.2
|
|
|
852.0
|
|
|
521.2
|
|
|
20.1
|
|
|
13.5
|
|
|
2,792.2
|
|
|
3,761.9
|
|
|
(969.7
|
)
|
|
14.1
|
|
|
20.4
|
|
||||||
Net earnings/(loss) attributable to noncontrolling interests
|
0.4
|
|
|
(0.5
|
)
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
|
(0.9
|
)
|
|
(3.3
|
)
|
|
—
|
|
|
—
|
|
||||||
Net earnings attributable to Starbucks
|
$
|
1,372.8
|
|
|
$
|
852.5
|
|
|
$
|
520.3
|
|
|
20.1
|
%
|
|
13.5
|
%
|
|
$
|
2,796.4
|
|
|
$
|
3,762.8
|
|
|
$
|
(966.4
|
)
|
|
14.2
|
%
|
|
20.4
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
|
|
18.1
|
%
|
|
17.0
|
%
|
|
|
|
|
|
|
|
19.4
|
%
|
|
22.4
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||||||||||
|
|
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
|
|
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Company-operated stores
|
$
|
4,172.9
|
|
|
$
|
3,768.5
|
|
|
$
|
404.4
|
|
|
89.3
|
%
|
|
89.2
|
%
|
|
$
|
12,100.1
|
|
|
$
|
11,120.5
|
|
|
$
|
979.6
|
|
|
89.1
|
%
|
|
89.1
|
%
|
Licensed stores
|
496.3
|
|
|
452.0
|
|
|
44.3
|
|
|
10.6
|
|
|
10.7
|
|
|
1,474.0
|
|
|
1,348.0
|
|
|
126.0
|
|
|
10.9
|
|
|
10.8
|
|
||||||
Other
|
2.6
|
|
|
3.5
|
|
|
(0.9
|
)
|
|
0.1
|
|
|
0.1
|
|
|
9.7
|
|
|
9.5
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
||||||
Total net revenues
|
4,671.8
|
|
|
4,224.0
|
|
|
447.8
|
|
|
100.0
|
|
|
100.0
|
|
|
13,583.8
|
|
|
12,478.0
|
|
|
1,105.8
|
|
|
100.0
|
|
|
100.0
|
|
||||||
Cost of sales including occupancy costs
|
1,700.8
|
|
|
1,570.8
|
|
|
130.0
|
|
|
36.4
|
|
|
37.2
|
|
|
5,002.2
|
|
|
4,694.9
|
|
|
307.3
|
|
|
36.8
|
|
|
37.6
|
|
||||||
Store operating expenses
|
1,615.6
|
|
|
1,447.6
|
|
|
168.0
|
|
|
34.6
|
|
|
34.3
|
|
|
4,741.6
|
|
|
4,292.9
|
|
|
448.7
|
|
|
34.9
|
|
|
34.4
|
|
||||||
Other operating expenses
|
41.3
|
|
|
36.7
|
|
|
4.6
|
|
|
0.9
|
|
|
0.9
|
|
|
124.2
|
|
|
109.2
|
|
|
15.0
|
|
|
0.9
|
|
|
0.9
|
|
||||||
Depreciation and amortization expenses
|
173.2
|
|
|
159.3
|
|
|
13.9
|
|
|
3.7
|
|
|
3.8
|
|
|
509.6
|
|
|
477.7
|
|
|
31.9
|
|
|
3.8
|
|
|
3.8
|
|
||||||
General and administrative expenses
|
58.7
|
|
|
84.4
|
|
|
(25.7
|
)
|
|
1.3
|
|
|
2.0
|
|
|
172.0
|
|
|
196.4
|
|
|
(24.4
|
)
|
|
1.3
|
|
|
1.6
|
|
||||||
Restructuring and impairments
|
15.1
|
|
|
18.4
|
|
|
(3.3
|
)
|
|
0.3
|
|
|
0.4
|
|
|
56.2
|
|
|
21.0
|
|
|
35.2
|
|
|
0.4
|
|
|
0.2
|
|
||||||
Total operating expenses
|
3,604.7
|
|
|
3,317.2
|
|
|
287.5
|
|
|
77.2
|
|
|
78.5
|
|
|
10,605.8
|
|
|
9,792.1
|
|
|
813.7
|
|
|
78.1
|
|
|
78.5
|
|
||||||
Operating income
|
$
|
1,067.1
|
|
|
$
|
906.8
|
|
|
$
|
160.3
|
|
|
22.8
|
%
|
|
21.5
|
%
|
|
$
|
2,978.0
|
|
|
$
|
2,685.9
|
|
|
$
|
292.1
|
|
|
21.9
|
%
|
|
21.5
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
38.7
|
%
|
|
38.4
|
%
|
|
|
|
|
|
|
|
39.2
|
%
|
|
38.6
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||||||||||
|
|
|
|
|
|
|
As a % of CAP
Total Net Revenues
|
|
|
|
|
|
|
|
As a % of CAP
Total Net Revenues
|
||||||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Company-operated stores
|
$
|
1,229.8
|
|
|
$
|
1,136.5
|
|
|
$
|
93.3
|
|
|
92.0
|
%
|
|
92.5
|
%
|
|
$
|
3,539.7
|
|
|
$
|
2,977.6
|
|
|
$
|
562.1
|
|
|
91.9
|
%
|
|
91.4
|
%
|
Licensed stores
|
103.8
|
|
|
90.1
|
|
|
13.7
|
|
|
7.8
|
|
|
7.3
|
|
|
303.1
|
|
|
272.8
|
|
|
30.3
|
|
|
7.9
|
|
|
8.4
|
|
||||||
Other
|
3.3
|
|
|
2.4
|
|
|
0.9
|
|
|
0.2
|
|
|
0.2
|
|
|
10.6
|
|
|
8.7
|
|
|
1.9
|
|
|
0.3
|
|
|
0.3
|
|
||||||
Total net revenues
|
1,336.9
|
|
|
1,229.0
|
|
|
107.9
|
|
|
100.0
|
|
|
100.0
|
|
|
3,853.4
|
|
|
3,259.1
|
|
|
594.3
|
|
|
100.0
|
|
|
100.0
|
|
||||||
Cost of sales including occupancy costs
|
548.7
|
|
|
505.4
|
|
|
43.3
|
|
|
41.0
|
|
|
41.1
|
|
|
1,620.9
|
|
|
1,388.9
|
|
|
232.0
|
|
|
42.1
|
|
|
42.6
|
|
||||||
Store operating expenses
|
347.9
|
|
|
310.2
|
|
|
37.7
|
|
|
26.0
|
|
|
25.2
|
|
|
1,020.8
|
|
|
835.3
|
|
|
185.5
|
|
|
26.5
|
|
|
25.6
|
|
||||||
Other operating expenses
|
4.7
|
|
|
4.4
|
|
|
0.3
|
|
|
0.4
|
|
|
0.4
|
|
|
17.8
|
|
|
18.7
|
|
|
(0.9
|
)
|
|
0.5
|
|
|
0.6
|
|
||||||
Depreciation and amortization expenses
|
118.9
|
|
|
120.7
|
|
|
(1.8
|
)
|
|
8.9
|
|
|
9.8
|
|
|
357.2
|
|
|
296.0
|
|
|
61.2
|
|
|
9.3
|
|
|
9.1
|
|
||||||
General and administrative expenses
|
74.1
|
|
|
77.7
|
|
|
(3.6
|
)
|
|
5.5
|
|
|
6.3
|
|
|
188.9
|
|
|
175.8
|
|
|
13.1
|
|
|
4.9
|
|
|
5.4
|
|
||||||
Restructuring and impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
||||||
Total operating expenses
|
1,094.3
|
|
|
1,018.4
|
|
|
75.9
|
|
|
81.9
|
|
|
82.9
|
|
|
3,206.2
|
|
|
2,714.7
|
|
|
491.5
|
|
|
83.2
|
|
|
83.3
|
|
||||||
Income from equity investees
|
27.2
|
|
|
23.5
|
|
|
3.7
|
|
|
2.0
|
|
|
1.9
|
|
|
75.7
|
|
|
91.0
|
|
|
(15.3
|
)
|
|
2.0
|
|
|
2.8
|
|
||||||
Operating income
|
$
|
269.8
|
|
|
$
|
234.1
|
|
|
$
|
35.7
|
|
|
20.2
|
%
|
|
19.0
|
%
|
|
$
|
722.9
|
|
|
$
|
635.4
|
|
|
$
|
87.5
|
|
|
18.8
|
%
|
|
19.5
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
28.3
|
%
|
|
27.3
|
%
|
|
|
|
|
|
|
|
28.8
|
%
|
|
28.1
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||||||||||
|
|
|
|
|
|
|
As a % of EMEA
Total Net Revenues
|
|
|
|
|
|
|
|
As a % of EMEA
Total Net Revenues
|
||||||||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Company-operated stores
|
$
|
106.4
|
|
|
$
|
142.9
|
|
|
$
|
(36.5
|
)
|
|
45.9
|
%
|
|
54.6
|
%
|
|
$
|
361.1
|
|
|
$
|
433.1
|
|
|
$
|
(72.0
|
)
|
|
49.8
|
%
|
|
55.5
|
%
|
Licensed stores
|
124.9
|
|
|
118.5
|
|
|
6.4
|
|
|
53.9
|
|
|
45.3
|
|
|
363.2
|
|
|
346.7
|
|
|
16.5
|
|
|
50.1
|
|
|
44.4
|
|
||||||
Other
|
0.4
|
|
|
0.3
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
1.3
|
|
|
1.0
|
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
||||||
Total net revenues
|
231.7
|
|
|
261.7
|
|
|
(30.0
|
)
|
|
100.0
|
|
|
100.0
|
|
|
725.6
|
|
|
780.8
|
|
|
(55.2
|
)
|
|
100.0
|
|
|
100.0
|
|
||||||
Cost of sales including occupancy costs
|
123.3
|
|
|
137.2
|
|
|
(13.9
|
)
|
|
53.2
|
|
|
52.4
|
|
|
380.8
|
|
|
420.7
|
|
|
(39.9
|
)
|
|
52.5
|
|
|
53.9
|
|
||||||
Store operating expenses
|
38.9
|
|
|
58.0
|
|
|
(19.1
|
)
|
|
16.8
|
|
|
22.2
|
|
|
142.2
|
|
|
170.4
|
|
|
(28.2
|
)
|
|
19.6
|
|
|
21.8
|
|
||||||
Other operating expenses
|
17.7
|
|
|
14.3
|
|
|
3.4
|
|
|
7.6
|
|
|
5.5
|
|
|
54.0
|
|
|
47.0
|
|
|
7.0
|
|
|
7.4
|
|
|
6.0
|
|
||||||
Depreciation and amortization expenses
|
5.4
|
|
|
8.0
|
|
|
(2.6
|
)
|
|
2.3
|
|
|
3.1
|
|
|
20.1
|
|
|
23.5
|
|
|
(3.4
|
)
|
|
2.8
|
|
|
3.0
|
|
||||||
General and administrative expenses
|
13.2
|
|
|
15.0
|
|
|
(1.8
|
)
|
|
5.7
|
|
|
5.7
|
|
|
41.1
|
|
|
40.1
|
|
|
1.0
|
|
|
5.7
|
|
|
5.1
|
|
||||||
Restructuring and impairments
|
16.6
|
|
|
—
|
|
|
16.6
|
|
|
7.2
|
|
|
—
|
|
|
46.6
|
|
|
28.5
|
|
|
18.1
|
|
|
6.4
|
|
|
3.7
|
|
||||||
Total operating expenses
|
215.1
|
|
|
232.5
|
|
|
(17.4
|
)
|
|
92.8
|
|
|
88.8
|
|
|
684.8
|
|
|
730.2
|
|
|
(45.4
|
)
|
|
94.4
|
|
|
93.5
|
|
||||||
Operating income
|
$
|
16.6
|
|
|
$
|
29.2
|
|
|
$
|
(12.6
|
)
|
|
7.2
|
%
|
|
11.2
|
%
|
|
$
|
40.8
|
|
|
$
|
50.6
|
|
|
$
|
(9.8
|
)
|
|
5.6
|
%
|
|
6.5
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
36.6
|
%
|
|
40.6
|
%
|
|
|
|
|
|
|
|
39.4
|
%
|
|
39.3
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||||||||||||
|
|
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
|
|
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
||||||||||||||||||||
Net revenues
|
$
|
533.3
|
|
|
$
|
567.4
|
|
|
$
|
(34.1
|
)
|
|
|
|
|
|
|
|
$
|
1,484.5
|
|
|
$
|
1,758.0
|
|
|
$
|
(273.5
|
)
|
|
|
|
|
|
|
Cost of sales
|
377.1
|
|
|
304.6
|
|
|
72.5
|
|
|
70.7
|
%
|
|
53.7
|
%
|
|
1,030.9
|
|
|
938.0
|
|
|
92.9
|
|
|
69.4
|
%
|
|
53.4
|
%
|
||||||
Other operating expenses
|
20.2
|
|
|
74.0
|
|
|
(53.8
|
)
|
|
3.8
|
|
|
13.0
|
|
|
55.9
|
|
|
194.5
|
|
|
(138.6
|
)
|
|
3.8
|
|
|
11.1
|
|
||||||
Depreciation and amortization expenses
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.6
|
|
|
1.2
|
|
|
11.4
|
|
|
0.8
|
|
|
0.1
|
|
||||||
General and administrative expenses
|
2.7
|
|
|
3.7
|
|
|
(1.0
|
)
|
|
0.5
|
|
|
0.7
|
|
|
8.9
|
|
|
10.6
|
|
|
(1.7
|
)
|
|
0.6
|
|
|
0.6
|
|
||||||
Total operating expenses
|
400.2
|
|
|
382.5
|
|
|
17.7
|
|
|
75.0
|
|
|
67.4
|
|
|
1,108.3
|
|
|
1,144.3
|
|
|
(36.0
|
)
|
|
74.7
|
|
|
65.1
|
|
||||||
Income from equity investees
|
48.8
|
|
|
47.9
|
|
|
0.9
|
|
|
9.2
|
|
|
8.4
|
|
|
130.4
|
|
|
122.5
|
|
|
7.9
|
|
|
8.8
|
|
|
7.0
|
|
||||||
Operating income
|
$
|
181.9
|
|
|
$
|
232.8
|
|
|
$
|
(50.9
|
)
|
|
34.1
|
%
|
|
41.0
|
%
|
|
$
|
506.6
|
|
|
$
|
736.2
|
|
|
$
|
(229.6
|
)
|
|
34.1
|
%
|
|
41.9
|
%
|
|
Quarter Ended
|
|
Three Quarters Ended
|
||||||||||||||||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
%
Change
|
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
$
Change
|
|
%
Change
|
||||||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Company-operated stores
|
$
|
25.9
|
|
|
$
|
12.5
|
|
|
$
|
13.4
|
|
|
107.2
|
%
|
|
$
|
63.4
|
|
|
$
|
99.1
|
|
|
$
|
(35.7
|
)
|
|
(36.0
|
)%
|
Licensed stores
|
—
|
|
|
—
|
|
|
—
|
|
|
nm
|
|
|
—
|
|
|
1.1
|
|
|
(1.1
|
)
|
|
nm
|
|
||||||
Other
|
23.4
|
|
|
15.7
|
|
|
7.7
|
|
|
49.0
|
|
|
50.9
|
|
|
39.8
|
|
|
11.1
|
|
|
27.9
|
|
||||||
Total net revenues
|
49.3
|
|
|
28.2
|
|
|
21.1
|
|
|
74.8
|
|
|
114.3
|
|
|
140.0
|
|
|
(25.7
|
)
|
|
(18.4
|
)
|
||||||
Cost of sales including occupancy costs
|
58.7
|
|
|
35.4
|
|
|
23.3
|
|
|
65.8
|
|
|
136.3
|
|
|
127.3
|
|
|
9.0
|
|
|
7.1
|
|
||||||
Store operating expenses
|
16.1
|
|
|
9.2
|
|
|
6.9
|
|
|
75.0
|
|
|
56.6
|
|
|
53.0
|
|
|
3.6
|
|
|
6.8
|
|
||||||
Other operating expenses
|
5.7
|
|
|
2.9
|
|
|
2.8
|
|
|
96.6
|
|
|
13.3
|
|
|
13.1
|
|
|
0.2
|
|
|
1.5
|
|
||||||
Depreciation and amortization expenses
|
45.4
|
|
|
41.8
|
|
|
3.6
|
|
|
8.6
|
|
|
133.0
|
|
|
122.0
|
|
|
11.0
|
|
|
9.0
|
|
||||||
General and administrative expenses
|
331.5
|
|
|
305.1
|
|
|
26.4
|
|
|
8.7
|
|
|
1,008.3
|
|
|
876.1
|
|
|
132.2
|
|
|
15.1
|
|
||||||
Restructuring and impairments
|
6.0
|
|
|
(1.5
|
)
|
|
7.5
|
|
|
nm
|
|
|
20.5
|
|
|
129.7
|
|
|
(109.2
|
)
|
|
(84.2
|
)
|
||||||
Total operating expenses
|
463.4
|
|
|
392.9
|
|
|
70.5
|
|
|
17.9
|
|
|
1,368.0
|
|
|
1,321.2
|
|
|
46.8
|
|
|
3.5
|
|
||||||
Operating loss
|
$
|
(414.1
|
)
|
|
$
|
(364.7
|
)
|
|
$
|
(49.4
|
)
|
|
13.5
|
%
|
|
$
|
(1,253.7
|
)
|
|
$
|
(1,181.2
|
)
|
|
$
|
(72.5
|
)
|
|
6.1
|
%
|
|
Net stores opened/(closed) and
transferred during the period
|
|
|
|
|
||||||||||||
|
Quarter Ended
|
|
Three Quarters Ended
|
|
Stores open as of
|
||||||||||||
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
|
Jun 30,
2019 |
|
Jul 1,
2018 |
||||||
Americas
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
82
|
|
|
94
|
|
|
165
|
|
|
177
|
|
|
9,849
|
|
|
9,590
|
|
Licensed stores
|
53
|
|
|
86
|
|
|
226
|
|
|
468
|
|
|
7,996
|
|
|
7,614
|
|
Total Americas
|
135
|
|
|
180
|
|
|
391
|
|
|
645
|
|
|
17,845
|
|
|
17,204
|
|
China/Asia Pacific(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(217
|
)
|
|
163
|
|
|
107
|
|
|
1,909
|
|
|
5,266
|
|
|
4,979
|
|
Licensed stores
|
470
|
|
|
94
|
|
|
609
|
|
|
(1,136
|
)
|
|
3,980
|
|
|
3,273
|
|
Total China/Asia Pacific
|
253
|
|
|
257
|
|
|
716
|
|
|
773
|
|
|
9,246
|
|
|
8,252
|
|
EMEA(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(16
|
)
|
|
—
|
|
|
(114
|
)
|
|
(6
|
)
|
|
376
|
|
|
496
|
|
Licensed stores
|
71
|
|
|
76
|
|
|
317
|
|
|
269
|
|
|
3,147
|
|
|
2,741
|
|
Total EMEA
|
55
|
|
|
76
|
|
|
203
|
|
|
263
|
|
|
3,523
|
|
|
3,237
|
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
(1
|
)
|
|
1
|
|
|
4
|
|
|
(285
|
)
|
|
12
|
|
|
5
|
|
Licensed stores
|
—
|
|
|
(3
|
)
|
|
(12
|
)
|
|
(15
|
)
|
|
—
|
|
|
22
|
|
Total Corporate and Other
|
(1
|
)
|
|
(2
|
)
|
|
(8
|
)
|
|
(300
|
)
|
|
12
|
|
|
27
|
|
Total Company
|
442
|
|
|
511
|
|
|
1,302
|
|
|
1,381
|
|
|
30,626
|
|
|
28,720
|
|
(1) China/Asia Pacific store data includes the transfer of 377 company-operated stores in Thailand to licensed stores as a result of the sale of operations late in the third quarter of fiscal 2019 and the transfer of 1,477 licensed stores in East China to company-operated retail stores as a result of the purchase of our East China joint venture in the first quarter of fiscal 2018.
|
|||||||||||||||||
(2) EMEA store data includes the transfer of 82 company-operated retail stores in France and the Netherlands to licensed stores as a result of the sales of these retail operations in the second quarter of fiscal 2019.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
Total
Number of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs(2) |
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or Programs(3) |
|||||
Period(1)
|
|
|
|
|
|
|
|
|
|||||
April 1, 2019 - April 28, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
59,482,496
|
|
April 29, 2019 - May 26, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,482,496
|
|
|
May 27, 2019 - June 30, 2019
|
|
6,784,350
|
|
|
79.63
|
|
|
6,784,350
|
|
|
52,698,146
|
|
|
Total
|
|
6,784,350
|
|
|
$
|
79.63
|
|
|
6,784,350
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the third quarter of fiscal 2019.
|
(2)
|
Share repurchases are conducted under our ongoing share repurchase program announced in September 2001, which has no expiration date.
|
(3)
|
This column includes the total number of shares available 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 determined at our discretion and the share repurchase program may be suspended, terminated or modified at any time for any reason.
|
Item 6.
|
Exhibits
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||||||
Exhibit
No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of
Filing
|
|
Exhibit Number
|
|
Filed
Herewith
|
|||||
|
|
10-Q
|
|
0-20322
|
|
04/28/2015
|
|
3.1
|
|
|
|||||||
|
|
8-K
|
|
0-20322
|
|
06/05/2018
|
|
3.1
|
|
|
|||||||
|
|
8-K
|
|
0-20322
|
|
05/13/2019
|
|
4.2
|
|
|
|||||||
|
|
8-K
|
|
0-20322
|
|
05/13/2019
|
|
4.3
|
|
|
|||||||
|
|
|
8-K
|
|
0-20322
|
|
05/13/2019
|
|
4.4
|
|
|
||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||||
101
|
|
The following financial statements from the Company's 10-Q for the fiscal quarter ended June 30, 2019, formatted in iXBRL: (i) Condensed Consolidated Statements of Earnings, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Equity and (vi) Notes to Condensed Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
STARBUCKS CORPORATION
|
||
|
|
|
|
|
By:
|
|
/s/ Patrick J. Grismer
|
|
|
|
Patrick J. Grismer
|
|
|
|
executive vice president, chief financial officer
|
|
|
|
Signing on behalf of the registrant and as
principal financial officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2019 of Starbucks Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Kevin R. Johnson
|
|
|
Kevin R. Johnson
|
|
|
president and chief executive officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2019 of Starbucks Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Patrick J. Grismer
|
|
|
Patrick J. Grismer
|
|
|
executive vice president, chief financial officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Starbucks.
|
|
|
/s/ Kevin R. Johnson
|
|
|
Kevin R. Johnson
|
|
|
president and chief executive officer
|
|
|
/s/ Patrick J. Grismer
|
|
|
Patrick J. Grismer
|
|
|
executive vice president, chief financial officer
|