Washington
|
91-1325671
|
(State of Incorporation)
|
(IRS Employer ID)
|
Title of Each Class
|
Trading Symbol
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.001 par value per share
|
SBUX
|
Nasdaq Global Select Market
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
PART I
|
||
Item 1
|
||
Item 1A
|
||
Item 1B
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
PART II
|
||
Item 5
|
||
Item 6
|
||
Item 7
|
||
Item 7A
|
||
Item 8
|
||
|
||
|
||
Item 9
|
||
Item 9A
|
||
Item 9B
|
||
PART III
|
||
Item 10
|
||
Item 11
|
||
Item 12
|
||
Item 13
|
||
Item 14
|
||
PART IV
|
||
Item 15
|
||
|
Americas
|
|
As a% of
Total
Americas Stores
|
|
International
|
|
As a% of
Total International Stores |
|
Total
|
|
As a% of
Total
Stores
|
||||||
Company-operated stores
|
9,974
|
|
|
55
|
%
|
|
5,860
|
|
|
44
|
%
|
|
15,834
|
|
|
51
|
%
|
Licensed stores
|
8,093
|
|
|
45
|
%
|
|
7,329
|
|
|
56
|
%
|
|
15,422
|
|
|
49
|
%
|
Total
|
18,067
|
|
|
100
|
%
|
|
13,189
|
|
|
100
|
%
|
|
31,256
|
|
|
100
|
%
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Sep 30, 2018
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Sep 29, 2019
|
||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
8,575
|
|
|
412
|
|
|
(196
|
)
|
|
—
|
|
|
216
|
|
|
8,791
|
|
Canada
|
1,109
|
|
|
82
|
|
|
(16
|
)
|
|
—
|
|
|
66
|
|
|
1,175
|
|
Siren Retail
|
6
|
|
|
3
|
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
8
|
|
Total Americas
|
9,690
|
|
|
497
|
|
|
(213
|
)
|
|
—
|
|
|
284
|
|
|
9,974
|
|
International (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
China
|
3,521
|
|
|
629
|
|
|
(27
|
)
|
|
—
|
|
|
602
|
|
|
4,123
|
|
Japan
|
1,286
|
|
|
105
|
|
|
(12
|
)
|
|
—
|
|
|
93
|
|
|
1,379
|
|
Thailand
|
352
|
|
|
29
|
|
|
(4
|
)
|
|
(377
|
)
|
|
(352
|
)
|
|
—
|
|
U.K.
|
335
|
|
|
6
|
|
|
(53
|
)
|
|
—
|
|
|
(47
|
)
|
|
288
|
|
All Other
|
155
|
|
|
1
|
|
|
(9
|
)
|
|
(82
|
)
|
|
(90
|
)
|
|
65
|
|
Siren Retail
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
5
|
|
Total International
|
5,651
|
|
|
773
|
|
|
(105
|
)
|
|
(459
|
)
|
|
209
|
|
|
5,860
|
|
Total company-operated
|
15,341
|
|
|
1,270
|
|
|
(318
|
)
|
|
(459
|
)
|
|
493
|
|
|
15,834
|
|
(1)
|
International 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 82 company-operated stores in France and the Netherlands to licensed stores as a result of the sales of operations in the second quarter of fiscal 2019.
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|||
Beverages
|
74
|
%
|
|
74
|
%
|
|
73
|
%
|
Food
|
20
|
%
|
|
20
|
%
|
|
20
|
%
|
Packaged and single-serve coffees and teas
|
1
|
%
|
|
2
|
%
|
|
3
|
%
|
Other (1)
|
5
|
%
|
|
4
|
%
|
|
4
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
“Other” primarily consists of sales of serveware and ready-to-drink beverages, among other items.
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Sep 30, 2018
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Sep 29, 2019
|
||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
6,031
|
|
|
318
|
|
|
(99
|
)
|
|
—
|
|
|
219
|
|
|
6,250
|
|
Mexico
|
708
|
|
|
49
|
|
|
(9
|
)
|
|
—
|
|
|
40
|
|
|
748
|
|
Latin America
|
622
|
|
|
45
|
|
|
(4
|
)
|
|
—
|
|
|
41
|
|
|
663
|
|
Canada
|
409
|
|
|
34
|
|
|
(11
|
)
|
|
—
|
|
|
23
|
|
|
432
|
|
Total Americas
|
7,770
|
|
|
446
|
|
|
(123
|
)
|
|
—
|
|
|
323
|
|
|
8,093
|
|
International (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Korea
|
1,231
|
|
|
128
|
|
|
(25
|
)
|
|
—
|
|
|
103
|
|
|
1,334
|
|
U.K.
|
653
|
|
|
60
|
|
|
(6
|
)
|
|
—
|
|
|
54
|
|
|
707
|
|
Turkey
|
453
|
|
|
47
|
|
|
(6
|
)
|
|
—
|
|
|
41
|
|
|
494
|
|
Taiwan
|
458
|
|
|
35
|
|
|
(13
|
)
|
|
—
|
|
|
22
|
|
|
480
|
|
Indonesia
|
365
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
421
|
|
Philippines
|
360
|
|
|
39
|
|
|
(2
|
)
|
|
—
|
|
|
37
|
|
|
397
|
|
Thailand
|
—
|
|
|
15
|
|
|
—
|
|
|
377
|
|
|
392
|
|
|
392
|
|
All Other
|
2,681
|
|
|
396
|
|
|
(55
|
)
|
|
82
|
|
|
423
|
|
|
3,104
|
|
Total International
|
6,201
|
|
|
776
|
|
|
(107
|
)
|
|
459
|
|
|
1,128
|
|
|
7,329
|
|
Corporate and Other:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Teavana
|
12
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
Total Corporate and Other
|
12
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
Total licensed
|
13,983
|
|
|
1,222
|
|
|
(242
|
)
|
|
459
|
|
|
1,439
|
|
|
15,422
|
|
(1)
|
International 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 82 company-operated stores in France and the Netherlands to licensed stores as a result of the sales of operations in the second quarter of fiscal 2019.
|
Name
|
|
Age
|
|
Position
|
Kevin R. Johnson
|
|
59
|
|
president and chief executive officer
|
Rosalind G. Brewer
|
|
57
|
|
group president, Americas and chief operating officer
|
Cliff Burrows
|
|
60
|
|
group president, Siren Retail
|
John Culver
|
|
59
|
|
group president, International, Channel Development and Global Coffee & Tea
|
Rachel A. Gonzalez
|
|
50
|
|
executive vice president, general counsel and secretary
|
Patrick J. Grismer
|
|
57
|
|
executive vice president, chief financial officer
|
Lucy Lee Helm
|
|
62
|
|
executive vice president, chief partner officer
|
John Kelly
|
|
53
|
|
executive vice president, Global Public Affairs and Social Impact
|
•
|
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 could have a negative impact on our financial results.
|
•
|
If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments, it could damage our brand and our financial results could suffer.
|
•
|
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 growth initiatives, and any material failure, inadequacy, interruption or security failure of that technology could harm our ability to effectively operate and grow 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;
|
•
|
driving convenience, brand engagement and digital relationships through our mobile, loyalty, delivery and digital capabilities both domestically and internationally;
|
•
|
simplifying store administrative tasks to allow store partners to better engage with customers;
|
•
|
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 through our supply, distribution and licensing agreements with Nestlé and other Channel Development business partners;
|
•
|
delivering continued growth in our cold beverage business, including our tea business through the Teavana brand in our Starbucks® retail stores and other channels and internationally; and
|
•
|
reducing our operating costs, particularly general and administrative expenses.
|
•
|
imposition of additional taxes by jurisdictions, such as on certain types of beverages or based on number of employees;
|
•
|
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; 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.
|
•
|
Evolving consumer preferences and tastes may adversely affect our business.
|
•
|
Our reliance on key business partners may adversely affect our business and operations.
|
•
|
Changes in the availability of and the cost of labor could adversely affect our business.
|
•
|
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.
|
•
|
the effects of current U.S.-China relations, including rounds of tariff increases and retaliations and increasing restrictive regulations, potential boycotts and increasing anti-Americanism;
|
•
|
entry of new competitors to the specialty coffee market in China;
|
•
|
changes in economic conditions in China and potential negative effects to the growth of its middle class, wages, labor, inflation discretionary spending and real estate and supply chain costs;
|
•
|
ongoing government regulatory reform, including relating to food safety, tariffs and tax, bringing uncertainty and inconsistent interpretations, which may be contrary to ours, as well as potential significant increases in compliance costs;
|
•
|
food-safety related matters, including compliance with food-safety regulations and ability to ensure product quality and safety; and
|
•
|
the ability to successfully integrate the East China business.
|
•
|
We face risks as a global business that could adversely affect our financial performance.
|
•
|
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, tariffs, labor, merchandise, anti-bribery and privacy laws and regulations;
|
•
|
uncertainties and effects of the implementation of the United Kingdom's referendum to withdraw membership from the European Union (referred to as “Brexit”), including financial, legal, tax and trade implications;
|
•
|
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; and
|
•
|
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.
|
•
|
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;
|
•
|
especially in our large markets, labor discord or disruption, geopolitical events, war, terrorism (including incidents targeting us), political instability, acts of public violence, boycotts, increasing anti-American sentiment in certain markets, social unrest, and health pandemics that lead to avoidance of public places or restrictions on public gatherings such as in our stores; and
|
•
|
the discontinuation of the London Interbank Offered Rate (“LIBOR”) after 2021 and the replacement with an alternative reference rate may adversely impact interest rates.
|
•
|
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 2.
|
Properties
|
Location
|
Approximate Size
in Square Feet |
|
Purpose
|
|
Minden, NV (Carson Valley)
|
1,080,000
|
|
|
Roasting, warehousing and distribution
|
York, PA
|
1,957,435
|
|
|
Roasting, warehousing and distribution
|
Lebanon, TN
|
680,000
|
|
|
Warehousing and distribution
|
Auburn, WA
|
491,000
|
|
|
Warehousing and distribution
|
Kent, WA
|
510,000
|
|
|
Roasting and distribution
|
Seattle, WA
|
1,283,000
|
|
|
Corporate administrative
|
Shanghai, China
|
177,000
|
|
|
Corporate administrative
|
Item 3.
|
Legal Proceedings
|
|
|
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 1, 2019 - July 28, 2019
|
|
10,925,000
|
|
|
$
|
89.32
|
|
|
10,925,000
|
|
|
41,773,146
|
|
July 29, 2019 - August 25, 2019
|
|
8,267,159
|
|
|
95.61
|
|
|
8,267,159
|
|
|
33,505,987
|
|
|
August 26, 2019 - September 29, 2019
|
|
4,339,988
|
|
|
94.68
|
|
|
4,339,988
|
|
|
29,165,999
|
|
|
Total
|
|
23,532,147
|
|
|
$
|
92.52
|
|
|
23,532,147
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the fourth 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.
|
|
Sep 28, 2014
|
|
Sep 27, 2015
|
|
Oct 2, 2016
|
|
Oct 1, 2017
|
|
Sep 30, 2018
|
|
Sep 29, 2019
|
||||||||||||
Starbucks Corporation
|
$
|
100.00
|
|
|
$
|
156.42
|
|
|
$
|
148.03
|
|
|
$
|
149.49
|
|
|
$
|
161.87
|
|
|
$
|
256.48
|
|
S&P 500
|
100.00
|
|
|
99.39
|
|
|
114.72
|
|
|
136.07
|
|
|
160.44
|
|
|
167.27
|
|
||||||
NASDAQ Composite
|
100.00
|
|
|
104.00
|
|
|
121.08
|
|
|
149.75
|
|
|
187.44
|
|
|
188.43
|
|
||||||
S&P Consumer Discretionary
|
100.00
|
|
|
113.18
|
|
|
124.09
|
|
|
142.10
|
|
|
188.34
|
|
|
192.78
|
|
As of and for the Fiscal Year Ended (1)
|
Sept 29,
2019 (52 Wks) |
|
Sept 30,
2018 (52 Wks) |
|
Oct 1,
2017 (52 Wks) |
|
Oct 2,
2016 (53 Wks) |
|
Sep 27,
2015 (52 Wks) |
|||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Company-operated stores
|
$
|
21,544.4
|
|
|
$
|
19,690.3
|
|
|
$
|
17,650.7
|
|
|
$
|
16,844.1
|
|
|
$
|
15,197.3
|
|
|
Licensed stores
|
2,875.0
|
|
|
2,652.2
|
|
|
2,355.0
|
|
|
2,154.2
|
|
|
1,861.9
|
|
||||||
Other
|
2,089.2
|
|
|
2,377.0
|
|
|
2,381.1
|
|
|
2,317.6
|
|
|
2,103.5
|
|
||||||
Total net revenues
|
$
|
26,508.6
|
|
|
$
|
24,719.5
|
|
|
$
|
22,386.8
|
|
|
$
|
21,315.9
|
|
|
$
|
19,162.7
|
|
|
Operating income/(loss)
|
$
|
4,077.9
|
|
|
$
|
3,883.3
|
|
|
$
|
4,134.7
|
|
|
$
|
4,171.9
|
|
|
$
|
3,601.0
|
|
|
Net earnings including noncontrolling interests (2)
|
3,594.6
|
|
|
4,518.0
|
|
|
2,884.9
|
|
|
2,818.9
|
|
|
2,759.3
|
|
||||||
Net earnings/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|
1.2
|
|
|
1.9
|
|
||||||
Net earnings attributable to Starbucks (2)
|
3,599.2
|
|
|
4,518.3
|
|
|
2,884.7
|
|
|
2,817.7
|
|
|
2,757.4
|
|
||||||
EPS — diluted (2)
|
2.92
|
|
|
3.24
|
|
|
1.97
|
|
|
1.90
|
|
|
1.82
|
|
||||||
Cash dividends declared per share
|
1.49
|
|
|
1.32
|
|
|
1.05
|
|
|
0.85
|
|
|
0.68
|
|
||||||
Net cash provided by operating activities (3)
|
5,047.0
|
|
|
11,937.8
|
|
|
4,251.8
|
|
|
4,697.9
|
|
|
3,881.5
|
|
||||||
Capital expenditures (additions to property, plant and equipment)
|
1,806.6
|
|
|
1,976.4
|
|
|
1,519.4
|
|
|
1,440.3
|
|
|
1,303.7
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets
|
$
|
19,219.6
|
|
|
$
|
24,156.4
|
|
|
$
|
14,365.6
|
|
|
$
|
14,312.5
|
|
|
$
|
12,404.1
|
|
|
Long-term debt (including current portion)
|
11,167.0
|
|
|
9,440.1
|
|
|
3,932.6
|
|
|
3,585.2
|
|
|
2,335.3
|
|
||||||
Shareholders’ equity/(deficit)
|
(6,232.2
|
)
|
|
1,169.5
|
|
|
5,450.1
|
|
|
5,884.0
|
|
|
5,818.0
|
|
(1)
|
Our fiscal year ends on the Sunday closest to September 30. The fiscal year ending on October 2, 2016 included 53 weeks, with the 53rd week falling in our fourth fiscal quarter.
|
(2)
|
Fiscal 2018 results include a gain not subject to income tax of $1.4 billion resulting from the acquisition of our East China joint venture. The impact of the gain to our diluted EPS was $0.99.
|
(3)
|
Net cash provided by operating activities for fiscal 2015 through fiscal 2017 has been adjusted for the adoption of new accounting guidance related to excess tax benefits as discussed in Note 1, Summary of Significant Accounting Policies.
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
Percentage change in comparable store sales (1)
|
|
|
|
|
|
|
|
|
|
||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
5
|
%
|
|
2
|
%
|
|
3
|
%
|
|
6
|
%
|
|
7
|
%
|
|
Change in transactions
|
2
|
%
|
|
(1
|
)%
|
|
—
|
%
|
|
1
|
%
|
|
3
|
%
|
|
Change in ticket
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
5
|
%
|
|
4
|
%
|
|
International (2)
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
3
|
%
|
|
1
|
%
|
|
2
|
%
|
|
2
|
%
|
|
6
|
%
|
|
Change in transactions
|
1
|
%
|
|
(1
|
)%
|
|
1
|
%
|
|
1
|
%
|
|
5
|
%
|
|
Change in ticket
|
2
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
5
|
%
|
|
2
|
%
|
|
3
|
%
|
|
5
|
%
|
|
7
|
%
|
|
Change in transactions
|
1
|
%
|
|
(1
|
)%
|
|
—
|
%
|
|
1
|
%
|
|
3
|
%
|
|
Change in ticket
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
4
|
%
|
(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 and the results of our global Siren Retail operations. For fiscal year 2016, comparable store sales percentages were calculated excluding the 53rd week.
|
(2)
|
Beginning in February of fiscal 2019, comparable store sales include the results of 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. 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.
|
As of and for the Fiscal Year Ended
|
Sept 29,
2019 (52 Wks) |
|
Sept 30,
2018 (52 Wks) |
|
Oct 1,
2017 (52 Wks) |
|
Oct 2,
2016 (53 Wks) |
|
Sep 27,
2015 (52 Wks) |
||||||
Net stores opened/(closed) and transferred during the year:
|
|
|
|
|
|
|
|
|
|
||||||
Americas (1)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
284
|
|
|
275
|
|
|
395
|
|
|
348
|
|
|
277
|
|
|
Licensed stores
|
323
|
|
|
624
|
|
|
558
|
|
|
456
|
|
|
336
|
|
|
International (2)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
209
|
|
|
2,079
|
|
|
238
|
|
|
145
|
|
|
1,240
|
|
|
Licensed stores
|
1,128
|
|
|
(680
|
)
|
|
1,130
|
|
|
1,116
|
|
|
(180
|
)
|
|
Corporate and Other (3)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
—
|
|
|
(288
|
)
|
|
(69
|
)
|
|
(17
|
)
|
|
5
|
|
|
Licensed stores
|
(12
|
)
|
|
(25
|
)
|
|
2
|
|
|
(6
|
)
|
|
(1
|
)
|
|
Total
|
1,932
|
|
|
1,985
|
|
|
2,254
|
|
|
2,042
|
|
|
1,677
|
|
|
Stores open at year end:
|
|
|
|
|
|
|
|
|
|
||||||
Americas (1)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
9,974
|
|
|
9,690
|
|
|
9,415
|
|
|
9,020
|
|
|
8,672
|
|
|
Licensed stores
|
8,093
|
|
|
7,770
|
|
|
7,146
|
|
|
6,588
|
|
|
6,132
|
|
|
International (2)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
5,860
|
|
|
5,651
|
|
|
3,572
|
|
|
3,334
|
|
|
3,189
|
|
|
Licensed stores
|
7,329
|
|
|
6,201
|
|
|
6,881
|
|
|
5,751
|
|
|
4,635
|
|
|
Corporate and Other (3)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
—
|
|
|
—
|
|
|
288
|
|
|
357
|
|
|
374
|
|
|
Licensed stores
|
—
|
|
|
12
|
|
|
37
|
|
|
35
|
|
|
41
|
|
|
Total
|
31,256
|
|
|
29,324
|
|
|
27,339
|
|
|
25,085
|
|
|
23,043
|
|
(1)
|
Americas store data includes the transfer of 112 company-operated retail stores in Brazil to licensed stores as a result of the sale of our Brazil retail operations in the second quarter of fiscal 2018 and the closure of 132 Target Canada licensed stores in the second quarter of fiscal 2015.
|
(2)
|
International store data includes in fiscal 2019 the transfer of 82 company-operated stores in France and the Netherlands to licensed stores as a result of the sales of operations in the second quarter and 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. Additionally, store data includes 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, the transfer of 133 Singapore stores from company-operated stores to licensed stores in fiscal 2017, the transfer of 144 Germany company-operated stores to licensed stores in fiscal 2016, and the transfer of 1,009 Japan stores from licensed stores to company-operated as a result of the acquisition of Starbucks Japan in fiscal 2015.
|
(3)
|
Corporate and Other store data includes the closure of 313 Teavana retail stores in fiscal 2018 and 12 Teavana retail stores in the first quarter of fiscal 2019.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Total net revenues increased 7% to $26.5 billion in fiscal 2019 compared to $24.7 billion in fiscal 2018.
|
•
|
Consolidated operating income increased to $4.1 billion in fiscal 2019 compared to operating income of $3.9 billion in fiscal 2018. Fiscal 2019 operating margin was 15.4% compared to 15.7% in fiscal 2018. Operating margin compression in fiscal 2019 was primarily driven by partner (employee) investments and growth in wages and benefits, licensing our CPG and Foodservice businesses to Nestlé and other strategic investments. These decreases were partially offset by sales leverage, cost savings initiatives, lower restructuring and impairment costs and the impact of the adoption of new revenue recognition guidance on stored value card breakage.
|
•
|
Earnings per share (“EPS”) for fiscal 2019 decreased to $2.92, compared to EPS of $3.24 in fiscal 2018. The decrease was primarily driven by lapping the prior year gains from the acquisition of our East China joint venture and the sale of our Tazo brand, partially offset by the gain from the sale of our Thailand retail operations during fiscal 2019.
|
•
|
Capital expenditures were $1.8 billion in fiscal 2019 compared to $2.0 billion in fiscal 2018.
|
•
|
We returned $12.0 billion to our shareholders in fiscal 2019 through share repurchases and dividends compared to $8.9 billion in fiscal 2018.
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
21,544.4
|
|
|
$
|
19,690.3
|
|
|
9.4
|
%
|
Licensed stores
|
2,875.0
|
|
|
2,652.2
|
|
|
8.4
|
|
||
Other
|
2,089.2
|
|
|
2,377.0
|
|
|
(12.1
|
)
|
||
Total net revenues
|
$
|
26,508.6
|
|
|
$
|
24,719.5
|
|
|
7.2
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Cost of sales
|
$
|
8,526.9
|
|
|
$
|
7,930.7
|
|
|
32.2
|
%
|
|
32.1
|
%
|
Store operating expenses
|
10,493.6
|
|
|
9,472.2
|
|
|
39.6
|
|
|
38.3
|
|
||
Other operating expenses
|
371.0
|
|
|
554.9
|
|
|
1.4
|
|
|
2.2
|
|
||
Depreciation and amortization expenses
|
1,377.3
|
|
|
1,247.0
|
|
|
5.2
|
|
|
5.0
|
|
||
General and administrative expenses
|
1,824.1
|
|
|
1,708.2
|
|
|
6.9
|
|
|
6.9
|
|
||
Restructuring and impairments
|
135.8
|
|
|
224.4
|
|
|
0.5
|
|
|
0.9
|
|
||
Total operating expenses
|
22,728.7
|
|
|
21,137.4
|
|
|
85.7
|
|
|
85.5
|
|
||
Income from equity investees
|
298.0
|
|
|
301.2
|
|
|
1.1
|
|
|
1.2
|
|
||
Operating income
|
$
|
4,077.9
|
|
|
$
|
3,883.3
|
|
|
15.4
|
%
|
|
15.7
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
48.7
|
%
|
|
48.1
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Operating income
|
$
|
4,077.9
|
|
|
$
|
3,883.3
|
|
|
15.4
|
%
|
|
15.7
|
%
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
1,376.4
|
|
|
—
|
|
|
5.6
|
|
||
Net gain resulting from divestiture of certain operations
|
622.8
|
|
|
499.2
|
|
|
2.3
|
|
|
2.0
|
|
||
Interest income and other, net
|
96.5
|
|
|
191.4
|
|
|
0.4
|
|
|
0.8
|
|
||
Interest expense
|
(331.0
|
)
|
|
(170.3
|
)
|
|
(1.2
|
)
|
|
(0.7
|
)
|
||
Earnings before income taxes
|
4,466.2
|
|
|
5,780.0
|
|
|
16.8
|
|
|
23.4
|
|
||
Income tax expense
|
871.6
|
|
|
1,262.0
|
|
|
3.3
|
|
|
5.1
|
|
||
Net earnings including noncontrolling interests
|
3,594.6
|
|
|
4,518.0
|
|
|
13.6
|
|
|
18.3
|
|
||
Net earnings/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
3,599.2
|
|
|
$
|
4,518.3
|
|
|
13.6
|
%
|
|
18.3
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
19.5
|
%
|
|
21.8
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
16,288.2
|
|
|
$
|
14,921.5
|
|
|
89.2
|
%
|
|
89.1
|
%
|
Licensed stores
|
1,958.0
|
|
|
1,814.0
|
|
|
10.7
|
|
|
10.8
|
|
||
Other
|
12.8
|
|
|
13.1
|
|
|
0.1
|
|
|
0.1
|
|
||
Total net revenues
|
18,259.0
|
|
|
16,748.6
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
5,174.7
|
|
|
4,884.1
|
|
|
28.3
|
|
|
29.2
|
|
||
Store operating expenses
|
8,064.8
|
|
|
7,248.6
|
|
|
44.2
|
|
|
43.3
|
|
||
Other operating expenses
|
159.8
|
|
|
151.2
|
|
|
0.9
|
|
|
0.9
|
|
||
Depreciation and amortization expenses
|
696.1
|
|
|
641.0
|
|
|
3.8
|
|
|
3.8
|
|
||
General and administrative expenses
|
323.9
|
|
|
305.1
|
|
|
1.8
|
|
|
1.8
|
|
||
Restructuring and impairments
|
56.9
|
|
|
33.4
|
|
|
0.3
|
|
|
0.2
|
|
||
Total operating expenses
|
14,476.2
|
|
|
13,263.4
|
|
|
79.3
|
|
|
79.2
|
|
||
Operating income
|
$
|
3,782.8
|
|
|
$
|
3,485.2
|
|
|
20.7
|
%
|
|
20.8
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of International
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
5,256.2
|
|
|
$
|
4,702.1
|
|
|
84.9
|
%
|
|
84.7
|
%
|
Licensed stores
|
917.0
|
|
|
837.0
|
|
|
14.8
|
|
|
15.1
|
|
||
Other
|
17.5
|
|
|
12.1
|
|
|
0.3
|
|
|
0.2
|
|
||
Total net revenues
|
6,190.7
|
|
|
5,551.2
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
1,894.9
|
|
|
1,709.4
|
|
|
30.6
|
|
|
30.8
|
|
||
Store operating expenses
|
2,428.5
|
|
|
2,182.3
|
|
|
39.2
|
|
|
39.3
|
|
||
Other operating expenses
|
116.4
|
|
|
98.9
|
|
|
1.9
|
|
|
1.8
|
|
||
Depreciation and amortization expenses
|
511.5
|
|
|
447.6
|
|
|
8.3
|
|
|
8.1
|
|
||
General and administrative expenses
|
317.9
|
|
|
302.5
|
|
|
5.1
|
|
|
5.4
|
|
||
Restructuring and impairments
|
59.2
|
|
|
55.1
|
|
|
1.0
|
|
|
1.0
|
|
||
Total operating expenses
|
5,328.4
|
|
|
4,795.8
|
|
|
86.1
|
|
|
86.4
|
|
||
Income from equity investees
|
102.4
|
|
|
117.4
|
|
|
1.7
|
|
|
2.1
|
|
||
Operating income
|
$
|
964.7
|
|
|
$
|
872.8
|
|
|
15.6
|
%
|
|
15.7
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues
|
||||||||
Net revenues
|
$
|
1,992.6
|
|
|
$
|
2,297.3
|
|
|
|
|
|
||
Cost of sales
|
1,390.0
|
|
|
1,252.3
|
|
|
69.8
|
|
|
54.5
|
|
||
Other operating expenses
|
76.2
|
|
|
286.5
|
|
|
3.8
|
|
|
12.5
|
|
||
Depreciation and amortization expenses
|
13.0
|
|
|
1.3
|
|
|
0.7
|
|
|
0.1
|
|
||
General and administrative expenses
|
11.5
|
|
|
13.9
|
|
|
0.6
|
|
|
0.6
|
|
||
Total operating expenses
|
1,490.7
|
|
|
1,554.0
|
|
|
74.8
|
|
|
67.6
|
|
||
Income from equity investees
|
195.6
|
|
|
183.8
|
|
|
9.8
|
|
|
8.0
|
|
||
Operating income
|
$
|
697.5
|
|
|
$
|
927.1
|
|
|
35.0
|
%
|
|
40.4
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
% Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
—
|
|
|
$
|
66.7
|
|
|
(100.0
|
)%
|
Licensed stores
|
—
|
|
|
1.2
|
|
|
(100.0
|
)
|
||
Other
|
66.3
|
|
|
54.5
|
|
|
21.7
|
|
||
Total net revenues
|
66.3
|
|
|
122.4
|
|
|
(45.8
|
)
|
||
Cost of sales
|
67.3
|
|
|
84.9
|
|
|
(20.7
|
)
|
||
Store operating expenses
|
0.3
|
|
|
41.3
|
|
|
(99.3
|
)
|
||
Other operating expenses
|
18.6
|
|
|
18.3
|
|
|
1.6
|
|
||
Depreciation and amortization expenses
|
156.7
|
|
|
157.1
|
|
|
(0.3
|
)
|
||
General and administrative expenses
|
1,170.8
|
|
|
1,086.7
|
|
|
7.7
|
|
||
Restructuring and impairments
|
19.7
|
|
|
135.9
|
|
|
(85.5
|
)
|
||
Total operating expenses
|
1,433.4
|
|
|
1,524.2
|
|
|
(6.0
|
)
|
||
Operating loss
|
$
|
(1,367.1
|
)
|
|
$
|
(1,401.8
|
)
|
|
(2.5
|
)%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
%
Change |
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
19,690.3
|
|
|
$
|
17,650.7
|
|
|
11.6
|
%
|
Licensed stores
|
2,652.2
|
|
|
2,355.0
|
|
|
12.6
|
|
||
Other
|
2,377.0
|
|
|
2,381.1
|
|
|
(0.2
|
)
|
||
Total net revenues
|
$
|
24,719.5
|
|
|
$
|
22,386.8
|
|
|
10.4
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Cost of sales
|
$
|
7,930.7
|
|
|
$
|
7,065.8
|
|
|
32.1
|
%
|
|
31.6
|
%
|
Store operating expenses
|
9,472.2
|
|
|
8,486.4
|
|
|
38.3
|
|
|
37.9
|
|
||
Other operating expenses
|
554.9
|
|
|
518.0
|
|
|
2.2
|
|
|
2.3
|
|
||
Depreciation and amortization expenses
|
1,247.0
|
|
|
1,011.4
|
|
|
5.0
|
|
|
4.5
|
|
||
General and administrative expenses
|
1,708.2
|
|
|
1,408.4
|
|
|
6.9
|
|
|
6.3
|
|
||
Restructuring and impairments
|
224.4
|
|
|
153.5
|
|
|
0.9
|
|
|
0.7
|
|
||
Total operating expenses
|
21,137.4
|
|
|
18,643.5
|
|
|
85.5
|
|
|
83.3
|
|
||
Income from equity investees
|
301.2
|
|
|
391.4
|
|
|
1.2
|
|
|
1.7
|
|
||
Operating income
|
$
|
3,883.3
|
|
|
$
|
4,134.7
|
|
|
15.7
|
%
|
|
18.5
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
48.1
|
%
|
|
48.1
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Operating income
|
$
|
3,883.3
|
|
|
$
|
4,134.7
|
|
|
15.7
|
%
|
|
18.5
|
%
|
Gain resulting from acquisition of joint venture
|
1,376.4
|
|
|
—
|
|
|
5.6
|
|
|
—
|
|
||
Net gain resulting from divestiture of certain operations
|
499.2
|
|
|
93.5
|
|
|
2.0
|
|
|
0.4
|
|
||
Interest income and other, net
|
191.4
|
|
|
181.8
|
|
|
0.8
|
|
|
0.8
|
|
||
Interest expense
|
(170.3
|
)
|
|
(92.5
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
||
Earnings before income taxes
|
5,780.0
|
|
|
4,317.5
|
|
|
23.4
|
|
|
19.3
|
|
||
Income tax expense
|
1,262.0
|
|
|
1,432.6
|
|
|
5.1
|
|
|
6.4
|
|
||
Net earnings including noncontrolling interests
|
4,518.0
|
|
|
2,884.9
|
|
|
18.3
|
|
|
12.9
|
|
||
Net earnings attributable to noncontrolling interests
|
(0.3
|
)
|
|
0.2
|
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
4,518.3
|
|
|
$
|
2,884.7
|
|
|
18.3
|
%
|
|
12.9
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
21.8
|
%
|
|
33.2
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
14,921.5
|
|
|
$
|
14,005.8
|
|
|
89.1
|
%
|
|
89.6
|
%
|
Licensed stores
|
1,814.0
|
|
|
1,617.3
|
|
|
10.8
|
|
|
10.4
|
|
||
Other
|
13.1
|
|
|
6.3
|
|
|
0.1
|
|
|
—
|
|
||
Total net revenues
|
16,748.6
|
|
|
15,629.4
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
4,884.1
|
|
|
4,371.0
|
|
|
29.2
|
|
|
28.0
|
|
||
Store operating expenses
|
7,248.6
|
|
|
6,673.1
|
|
|
43.3
|
|
|
42.7
|
|
||
Other operating expenses
|
151.2
|
|
|
131.6
|
|
|
0.9
|
|
|
0.8
|
|
||
Depreciation and amortization expenses
|
641.0
|
|
|
616.1
|
|
|
3.8
|
|
|
3.9
|
|
||
General and administrative expenses
|
305.1
|
|
|
256.3
|
|
|
1.8
|
|
|
1.6
|
|
||
Restructuring and impairments
|
33.4
|
|
|
4.1
|
|
|
0.2
|
|
|
—
|
|
||
Total operating expenses
|
13,263.4
|
|
|
12,052.2
|
|
|
79.2
|
|
|
77.1
|
|
||
Operating income
|
$
|
3,485.2
|
|
|
$
|
3,577.2
|
|
|
20.8
|
%
|
|
22.9
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of International
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
4,702.1
|
|
|
$
|
3,462.5
|
|
|
84.7
|
%
|
|
82.4
|
%
|
Licensed stores
|
837.0
|
|
|
735.0
|
|
|
15.1
|
|
|
17.5
|
|
||
Other
|
12.1
|
|
|
6.8
|
|
|
0.2
|
|
|
0.2
|
|
||
Total net revenues
|
5,551.2
|
|
|
4,204.3
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
1,709.4
|
|
|
1,324.2
|
|
|
30.8
|
|
|
31.5
|
|
||
Store operating expenses
|
2,182.3
|
|
|
1,664.8
|
|
|
39.3
|
|
|
39.6
|
|
||
Other operating expenses
|
98.9
|
|
|
89.2
|
|
|
1.8
|
|
|
2.1
|
|
||
Depreciation and amortization expenses
|
447.6
|
|
|
233.2
|
|
|
8.1
|
|
|
5.5
|
|
||
General and administrative expenses
|
302.5
|
|
|
236.4
|
|
|
5.4
|
|
|
5.6
|
|
||
Restructuring and impairments
|
55.1
|
|
|
17.9
|
|
|
1.0
|
|
|
0.4
|
|
||
Total operating expenses
|
4,795.8
|
|
|
3,565.7
|
|
|
86.4
|
|
|
84.8
|
|
||
Income from equity investees
|
117.4
|
|
|
197.0
|
|
|
2.1
|
|
|
4.7
|
|
||
Operating income
|
$
|
872.8
|
|
|
$
|
835.6
|
|
|
15.7
|
%
|
|
19.9
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues
|
||||||||
Total net revenues
|
$
|
2,297.3
|
|
|
$
|
2,256.6
|
|
|
|
|
|
||
Cost of sales
|
1,252.3
|
|
|
1,209.3
|
|
|
54.5
|
|
|
53.6
|
|
||
Other operating expenses
|
286.5
|
|
|
260.4
|
|
|
12.5
|
|
|
11.5
|
|
||
Depreciation and amortization expenses
|
1.3
|
|
|
3.0
|
|
|
0.1
|
|
|
0.1
|
|
||
General and administrative expenses
|
13.9
|
|
|
11.3
|
|
|
0.6
|
|
|
0.5
|
|
||
Total operating expenses
|
1,554.0
|
|
|
1,484.0
|
|
|
67.6
|
|
|
65.8
|
|
||
Income from equity investees
|
183.8
|
|
|
194.4
|
|
|
8.0
|
|
|
8.6
|
|
||
Operating income
|
$
|
927.1
|
|
|
$
|
967.0
|
|
|
40.4
|
%
|
|
42.9
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
66.7
|
|
|
$
|
182.4
|
|
|
(63.4
|
)%
|
Licensed stores
|
1.2
|
|
|
2.7
|
|
|
(55.6
|
)
|
||
Other
|
54.5
|
|
|
111.4
|
|
|
(51.1
|
)
|
||
Total net revenues
|
122.4
|
|
|
296.5
|
|
|
(58.7
|
)
|
||
Cost of sales
|
84.9
|
|
|
161.3
|
|
|
(47.4
|
)
|
||
Store operating expenses
|
41.3
|
|
|
148.5
|
|
|
(72.2
|
)
|
||
Other operating expenses
|
18.3
|
|
|
36.8
|
|
|
(50.3
|
)
|
||
Depreciation and amortization expenses
|
157.1
|
|
|
159.1
|
|
|
(1.3
|
)
|
||
General and administrative expenses
|
1,086.7
|
|
|
904.4
|
|
|
20.2
|
|
||
Restructuring and impairments
|
135.9
|
|
|
131.5
|
|
|
3.3
|
|
||
Total operating expenses
|
1,524.2
|
|
|
1,541.6
|
|
|
(1.1
|
)
|
||
Operating loss
|
$
|
(1,401.8
|
)
|
|
$
|
(1,245.1
|
)
|
|
12.6
|
%
|
|
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)
|
$
|
10,230.9
|
|
|
$
|
1,432.9
|
|
|
$
|
2,589.6
|
|
|
$
|
2,120.7
|
|
|
$
|
4,087.7
|
|
Financing lease obligations
|
67.9
|
|
|
5.2
|
|
|
10.2
|
|
|
9.9
|
|
|
42.6
|
|
|||||
Debt obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments
|
11,238.3
|
|
|
—
|
|
|
1,750.0
|
|
|
2,538.3
|
|
|
6,950.0
|
|
|||||
Interest payments
|
5,109.7
|
|
|
372.6
|
|
|
705.1
|
|
|
602.3
|
|
|
3,429.7
|
|
|||||
Purchase obligations (3)
|
1,135.4
|
|
|
665.3
|
|
|
411.1
|
|
|
59.0
|
|
|
—
|
|
|||||
Other obligations (4)
|
454.6
|
|
|
109.4
|
|
|
63.2
|
|
|
85.3
|
|
|
196.7
|
|
|||||
Total
|
$
|
28,236.8
|
|
|
$
|
2,585.4
|
|
|
$
|
5,529.2
|
|
|
$
|
5,415.5
|
|
|
$
|
14,706.7
|
|
(1)
|
We have excluded long-term gross unrecognized tax benefits for uncertain tax positions, including interest and penalties of $140.1 million from the amounts presented as the timing of these obligations is uncertain.
|
(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 93% of total purchase obligations.
|
(4)
|
Other obligations include other long-term liabilities primarily consisting of the Tax Act transition tax, asset retirement obligations, Valor Siren Ventures I L.P. (VSV) investment 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
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
5
|
|
|
$
|
(5
|
)
|
|
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
|
$
|
35
|
|
|
$
|
(35
|
)
|
|
$
|
109
|
|
|
$
|
(109
|
)
|
|
|
|
|
Change in Fair Value
|
||||||||
|
|
Fair Value
|
|
100 Basis Point Increase in
Underlying Rate
|
|
100 Basis Point Decrease in
Underlying Rate
|
||||||
|
|
|||||||||||
Long-term debt (1)
|
|
$
|
12,033
|
|
|
$
|
846
|
|
|
$
|
(846
|
)
|
(1)
|
Amount disclosed is net of ($26 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
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
Net revenues:
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
21,544.4
|
|
|
$
|
19,690.3
|
|
|
$
|
17,650.7
|
|
Licensed stores
|
2,875.0
|
|
|
2,652.2
|
|
|
2,355.0
|
|
|||
Other
|
2,089.2
|
|
|
2,377.0
|
|
|
2,381.1
|
|
|||
Total net revenues
|
26,508.6
|
|
|
24,719.5
|
|
|
22,386.8
|
|
|||
Cost of sales
|
8,526.9
|
|
|
7,930.7
|
|
|
7,065.8
|
|
|||
Store operating expenses
|
10,493.6
|
|
|
9,472.2
|
|
|
8,486.4
|
|
|||
Other operating expenses
|
371.0
|
|
|
554.9
|
|
|
518.0
|
|
|||
Depreciation and amortization expenses
|
1,377.3
|
|
|
1,247.0
|
|
|
1,011.4
|
|
|||
General and administrative expenses
|
1,824.1
|
|
|
1,708.2
|
|
|
1,408.4
|
|
|||
Restructuring and impairments
|
135.8
|
|
|
224.4
|
|
|
153.5
|
|
|||
Total operating expenses
|
22,728.7
|
|
|
21,137.4
|
|
|
18,643.5
|
|
|||
Income from equity investees
|
298.0
|
|
|
301.2
|
|
|
391.4
|
|
|||
Operating income
|
4,077.9
|
|
|
3,883.3
|
|
|
4,134.7
|
|
|||
Gain resulting from acquisition of joint venture
|
—
|
|
|
1,376.4
|
|
|
—
|
|
|||
Net gain resulting from divestiture of certain operations
|
622.8
|
|
|
499.2
|
|
|
93.5
|
|
|||
Interest income and other, net
|
96.5
|
|
|
191.4
|
|
|
181.8
|
|
|||
Interest expense
|
(331.0
|
)
|
|
(170.3
|
)
|
|
(92.5
|
)
|
|||
Earnings before income taxes
|
4,466.2
|
|
|
5,780.0
|
|
|
4,317.5
|
|
|||
Income tax expense
|
871.6
|
|
|
1,262.0
|
|
|
1,432.6
|
|
|||
Net earnings including noncontrolling interests
|
3,594.6
|
|
|
4,518.0
|
|
|
2,884.9
|
|
|||
Net earnings/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|||
Net earnings attributable to Starbucks
|
$
|
3,599.2
|
|
|
$
|
4,518.3
|
|
|
$
|
2,884.7
|
|
Earnings per share — basic
|
$
|
2.95
|
|
|
$
|
3.27
|
|
|
$
|
1.99
|
|
Earnings per share — diluted
|
$
|
2.92
|
|
|
$
|
3.24
|
|
|
$
|
1.97
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
1,221.2
|
|
|
1,382.7
|
|
|
1,449.5
|
|
|||
Diluted
|
1,233.2
|
|
|
1,394.6
|
|
|
1,461.5
|
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
Net earnings including noncontrolling interests
|
$
|
3,594.6
|
|
|
$
|
4,518.0
|
|
|
$
|
2,884.9
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
10.5
|
|
|
(7.0
|
)
|
|
(9.5
|
)
|
|||
Tax (expense)/benefit
|
(2.3
|
)
|
|
1.9
|
|
|
2.9
|
|
|||
Unrealized gains/(losses) on cash flow hedging instruments
|
(14.1
|
)
|
|
24.4
|
|
|
53.2
|
|
|||
Tax (expense)/benefit
|
3.4
|
|
|
(6.5
|
)
|
|
(12.6
|
)
|
|||
Unrealized gains/(losses) on net investment hedging instruments
|
(39.8
|
)
|
|
7.8
|
|
|
20.1
|
|
|||
Tax (expense)/benefit
|
10.1
|
|
|
(2.2
|
)
|
|
(7.4
|
)
|
|||
Translation adjustment and other
|
(146.2
|
)
|
|
(220.0
|
)
|
|
(38.3
|
)
|
|||
Tax (expense)/benefit
|
2.5
|
|
|
3.4
|
|
|
(2.4
|
)
|
|||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment
|
1.3
|
|
|
24.7
|
|
|
(67.2
|
)
|
|||
Tax expense/(benefit)
|
1.6
|
|
|
(1.2
|
)
|
|
14.0
|
|
|||
Other comprehensive income/(loss)
|
(173.0
|
)
|
|
(174.7
|
)
|
|
(47.2
|
)
|
|||
Comprehensive income including noncontrolling interests
|
3,421.6
|
|
|
4,343.3
|
|
|
2,837.7
|
|
|||
Comprehensive income/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|||
Comprehensive income attributable to Starbucks
|
$
|
3,426.2
|
|
|
$
|
4,343.6
|
|
|
$
|
2,837.5
|
|
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,686.6
|
|
|
$
|
8,756.3
|
|
Short-term investments
|
70.5
|
|
|
181.5
|
|
||
Accounts receivable, net
|
879.2
|
|
|
693.1
|
|
||
Inventories
|
1,529.4
|
|
|
1,400.5
|
|
||
Prepaid expenses and other current assets
|
488.2
|
|
|
1,462.8
|
|
||
Total current assets
|
5,653.9
|
|
|
12,494.2
|
|
||
Long-term investments
|
220.0
|
|
|
267.7
|
|
||
Equity investments
|
396.0
|
|
|
334.7
|
|
||
Property, plant and equipment, net
|
6,431.7
|
|
|
5,929.1
|
|
||
Deferred income taxes, net
|
1,765.8
|
|
|
134.7
|
|
||
Other long-term assets
|
479.6
|
|
|
412.2
|
|
||
Other intangible assets
|
781.8
|
|
|
1,042.2
|
|
||
Goodwill
|
3,490.8
|
|
|
3,541.6
|
|
||
TOTAL ASSETS
|
$
|
19,219.6
|
|
|
$
|
24,156.4
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,189.7
|
|
|
$
|
1,179.3
|
|
Accrued liabilities
|
1,753.7
|
|
|
1,752.5
|
|
||
Accrued payroll and benefits
|
664.6
|
|
|
656.8
|
|
||
Income taxes payable
|
1,291.7
|
|
|
102.8
|
|
||
Stored value card liability and current portion of deferred revenue
|
1,269.0
|
|
|
1,642.9
|
|
||
Current portion of long-term debt
|
—
|
|
|
349.9
|
|
||
Total current liabilities
|
6,168.7
|
|
|
5,684.2
|
|
||
Long-term debt
|
11,167.0
|
|
|
9,090.2
|
|
||
Deferred revenue
|
6,744.4
|
|
|
6,775.7
|
|
||
Other long-term liabilities
|
1,370.5
|
|
|
1,430.5
|
|
||
Total liabilities
|
25,450.6
|
|
|
22,980.6
|
|
||
Shareholders’ equity/(deficit):
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,184.6 and 1,309.1 shares, respectively
|
1.2
|
|
|
1.3
|
|
||
Additional paid-in capital
|
41.1
|
|
|
41.1
|
|
||
Retained earnings/(deficit)
|
(5,771.2
|
)
|
|
1,457.4
|
|
||
Accumulated other comprehensive loss
|
(503.3
|
)
|
|
(330.3
|
)
|
||
Total shareholders’ equity/(deficit)
|
(6,232.2
|
)
|
|
1,169.5
|
|
||
Noncontrolling interests
|
1.2
|
|
|
6.3
|
|
||
Total equity/(deficit)
|
(6,231.0
|
)
|
|
1,175.8
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
|
$
|
19,219.6
|
|
|
$
|
24,156.4
|
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net earnings including noncontrolling interests
|
$
|
3,594.6
|
|
|
$
|
4,518.0
|
|
|
$
|
2,884.9
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
1,449.3
|
|
|
1,305.9
|
|
|
1,067.1
|
|
|||
Deferred income taxes, net
|
(1,495.4
|
)
|
|
714.9
|
|
|
95.1
|
|
|||
Income earned from equity method investees
|
(250.6
|
)
|
|
(242.8
|
)
|
|
(310.2
|
)
|
|||
Distributions received from equity method investees
|
216.8
|
|
|
226.8
|
|
|
186.6
|
|
|||
Gain resulting from acquisition of joint venture
|
—
|
|
|
(1,376.4
|
)
|
|
—
|
|
|||
Net gain resulting from divestiture of certain retail operations
|
(622.8
|
)
|
|
(499.2
|
)
|
|
(93.5
|
)
|
|||
Stock-based compensation
|
308.0
|
|
|
250.3
|
|
|
176.0
|
|
|||
Goodwill impairments
|
10.5
|
|
|
37.6
|
|
|
87.2
|
|
|||
Other
|
187.9
|
|
|
89.0
|
|
|
68.9
|
|
|||
Cash provided by changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(197.7
|
)
|
|
131.0
|
|
|
(96.8
|
)
|
|||
Inventories
|
(173.0
|
)
|
|
(41.2
|
)
|
|
14.0
|
|
|||
Prepaid expenses and other current assets
|
922.0
|
|
|
(839.5
|
)
|
|
(20.0
|
)
|
|||
Income taxes payable
|
1,237.1
|
|
|
146.0
|
|
|
(91.9
|
)
|
|||
Accounts payable
|
31.9
|
|
|
391.6
|
|
|
46.4
|
|
|||
Deferred revenue
|
(30.5
|
)
|
|
7,109.4
|
|
|
130.8
|
|
|||
Other operating assets and liabilities
|
(141.1
|
)
|
|
16.4
|
|
|
107.2
|
|
|||
Net cash provided by operating activities
|
5,047.0
|
|
|
11,937.8
|
|
|
4,251.8
|
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchases of investments
|
(190.4
|
)
|
|
(191.9
|
)
|
|
(674.4
|
)
|
|||
Sales of investments
|
298.3
|
|
|
459.0
|
|
|
1,054.5
|
|
|||
Maturities and calls of investments
|
59.8
|
|
|
45.3
|
|
|
149.6
|
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
(1,311.3
|
)
|
|
—
|
|
|||
Additions to property, plant and equipment
|
(1,806.6
|
)
|
|
(1,976.4
|
)
|
|
(1,519.4
|
)
|
|||
Net proceeds from the divestiture of certain operations
|
684.3
|
|
|
608.2
|
|
|
85.4
|
|
|||
Other
|
(56.2
|
)
|
|
5.6
|
|
|
54.3
|
|
|||
Net cash used by investing activities
|
(1,010.8
|
)
|
|
(2,361.5
|
)
|
|
(850.0
|
)
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
1,996.0
|
|
|
5,584.1
|
|
|
750.2
|
|
|||
Repayments of long-term debt
|
(350.0
|
)
|
|
—
|
|
|
(400.0
|
)
|
|||
Proceeds from issuance of common stock
|
409.8
|
|
|
153.9
|
|
|
150.8
|
|
|||
Cash dividends paid
|
(1,761.3
|
)
|
|
(1,743.4
|
)
|
|
(1,450.4
|
)
|
|||
Repurchase of common stock
|
(10,222.3
|
)
|
|
(7,133.5
|
)
|
|
(2,042.5
|
)
|
|||
Minimum tax withholdings on share-based awards
|
(111.6
|
)
|
|
(62.7
|
)
|
|
(82.8
|
)
|
|||
Other
|
(17.5
|
)
|
|
(41.2
|
)
|
|
(4.4
|
)
|
|||
Net cash used by financing activities
|
(10,056.9
|
)
|
|
(3,242.8
|
)
|
|
(3,079.1
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(49.0
|
)
|
|
(39.5
|
)
|
|
10.8
|
|
|||
Net increase/(decrease) in cash and cash equivalents
|
(6,069.7
|
)
|
|
6,294.0
|
|
|
333.5
|
|
|||
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
||||||
Beginning of period
|
8,756.3
|
|
|
2,462.3
|
|
|
2,128.8
|
|
|||
End of period
|
$
|
2,686.6
|
|
|
$
|
8,756.3
|
|
|
$
|
2,462.3
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest, net of capitalized interest
|
$
|
299.5
|
|
|
$
|
137.1
|
|
|
$
|
96.6
|
|
Income taxes, net of refunds
|
$
|
470.1
|
|
|
$
|
1,176.9
|
|
|
$
|
1,389.1
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained
Earnings/(Deficit) |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Shareholders’
Equity/(Deficit) |
|
Noncontrolling
Interests |
|
Total
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
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
|
—
|
|
|
—
|
|
|
—
|
|
|
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
|
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
|
|
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,518.3
|
|
|
—
|
|
|
4,518.3
|
|
|
(0.3
|
)
|
|
4,518.0
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(174.7
|
)
|
|
(174.7
|
)
|
|
—
|
|
|
(174.7
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
253.8
|
|
|
—
|
|
|
—
|
|
|
253.8
|
|
|
—
|
|
|
253.8
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
8.4
|
|
|
—
|
|
|
59.4
|
|
|
—
|
|
|
—
|
|
|
59.4
|
|
|
—
|
|
|
59.4
|
|
|||||||
Sale of common stock
|
0.6
|
|
|
—
|
|
|
31.8
|
|
|
—
|
|
|
—
|
|
|
31.8
|
|
|
—
|
|
|
31.8
|
|
|||||||
Repurchase of common stock
|
(131.5
|
)
|
|
(0.1
|
)
|
|
(345.0
|
)
|
|
(6,863.6
|
)
|
|
—
|
|
|
(7,208.7
|
)
|
|
—
|
|
|
(7,208.7
|
)
|
|||||||
Cash dividends declared, $1.32 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,760.5
|
)
|
|
—
|
|
|
(1,760.5
|
)
|
|
—
|
|
|
(1,760.5
|
)
|
|||||||
Net distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||||
Balance, September 30, 2018
|
1,309.1
|
|
|
$
|
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)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,599.2
|
|
|
—
|
|
|
3,599.2
|
|
|
(4.6
|
)
|
|
3,594.6
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173.0
|
)
|
|
(173.0
|
)
|
|
—
|
|
|
(173.0
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
311.3
|
|
|
—
|
|
|
—
|
|
|
311.3
|
|
|
—
|
|
|
311.3
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
14.7
|
|
|
—
|
|
|
264.9
|
|
|
—
|
|
|
—
|
|
|
264.9
|
|
|
—
|
|
|
264.9
|
|
|||||||
Sale of common stock
|
0.4
|
|
|
—
|
|
|
33.4
|
|
|
—
|
|
|
—
|
|
|
33.4
|
|
|
—
|
|
|
33.4
|
|
|||||||
Repurchase of common stock
|
(139.6
|
)
|
|
(0.1
|
)
|
|
(609.6
|
)
|
|
(9,521.8
|
)
|
|
—
|
|
|
(10,131.5
|
)
|
|
—
|
|
|
(10,131.5
|
)
|
|||||||
Cash dividends declared, $1.49 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,801.6
|
)
|
|
—
|
|
|
(1,801.6
|
)
|
|
—
|
|
|
(1,801.6
|
)
|
|||||||
Net distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||||||
Balance, September 29, 2019
|
1,184.6
|
|
|
$
|
1.2
|
|
|
$
|
41.1
|
|
|
$
|
(5,771.2
|
)
|
|
$
|
(503.3
|
)
|
|
$
|
(6,232.2
|
)
|
|
$
|
1.2
|
|
|
$
|
(6,231.0
|
)
|
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
|
|
Total
|
||
Stored value cards and loyalty program at September 30, 2018
|
$
|
1,328.6
|
|
Revenue recognition adoption impact
|
(358.0
|
)
|
|
Stored value cards and loyalty program at October 1, 2018
|
970.6
|
|
|
Revenue deferred - card activations, card reloads and Stars earned
|
10,983.6
|
|
|
Revenue recognized - card and Stars redemptions and breakage
|
(10,819.7
|
)
|
|
Other (1)
|
(20.8
|
)
|
|
Stored value cards and loyalty program at September 29, 2019 (2)
|
$
|
1,113.7
|
|
(1)
|
“Other” primarily consists of changes in the stored value cards and loyalty program balance resulting from the sale of certain retail businesses and foreign currency translation.
|
(2)
|
Approximately $1.0 billion of this amount is current.
|
(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
|
|
Consideration:
|
|
|
||
Cash paid for UPG 50% equity interest
|
|
$
|
1,440.8
|
|
Fair value of our pre-existing 50% equity interest
|
|
1,440.8
|
|
|
Settlement of pre-existing liabilities
|
|
90.5
|
|
|
Total consideration
|
|
$
|
2,972.1
|
|
|
|
|
||
Fair value of assets acquired and liabilities assumed:
|
|
|
||
Cash and cash equivalents
|
|
$
|
129.5
|
|
Accounts receivable
|
|
14.3
|
|
|
Inventories
|
|
16.1
|
|
|
Prepaid expenses and other current assets
|
|
20.6
|
|
|
Property, plant and equipment
|
|
254.1
|
|
|
Other long-term assets
|
|
44.6
|
|
|
Other intangible assets
|
|
818.0
|
|
|
Goodwill
|
|
2,164.1
|
|
|
Total assets acquired
|
|
$
|
3,461.3
|
|
Accounts payable
|
|
34.7
|
|
|
Accrued liabilities
|
|
187.7
|
|
|
Stored value card liability
|
|
21.7
|
|
|
Other long-term liabilities
|
|
245.1
|
|
|
Total liabilities assumed
|
|
489.2
|
|
|
Total consideration
|
|
$
|
2,972.1
|
|
|
Year Ended
|
||||||
|
Sep 30, 2018
|
|
Oct 1, 2017 (1)
|
||||
Revenue
|
$
|
24,990.4
|
|
|
$
|
23,315.0
|
|
Net earnings attributable to Starbucks
|
3,196.8
|
|
|
4,209.0
|
|
(1)
|
The pro forma net earnings attributable to Starbucks for fiscal 2017 includes acquisition-related gain of $1.4 billion and transaction and integration costs of $39.3 million for the year ended October 1, 2017.
|
|
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)
|
||||||||||||
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
|
||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
$
|
0.5
|
|
|
$
|
24.7
|
|
|
$
|
17.6
|
|
|
$
|
2.4
|
|
|
157
|
Cross-currency swaps
|
(1.4
|
)
|
|
(12.6
|
)
|
|
(6.0
|
)
|
|
—
|
|
|
62
|
||||
Foreign currency - other
|
12.9
|
|
|
5.8
|
|
|
(9.1
|
)
|
|
7.8
|
|
|
36
|
||||
Coffee
|
(1.0
|
)
|
|
(0.2
|
)
|
|
(6.6
|
)
|
|
(0.2
|
)
|
|
27
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
16.0
|
|
|
16.0
|
|
|
16.2
|
|
|
—
|
|
|
0
|
||||
Foreign currency debt
|
(26.1
|
)
|
|
3.6
|
|
|
(2.2
|
)
|
|
—
|
|
|
54
|
|
|
Year Ended
|
|
||||||||||||||||||||||
|
|
Gains/(Losses)
Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from
AOCI to Earnings
|
Location of gain/(loss)
|
||||||||||||||||||||
|
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rates
|
|
$
|
(27.8
|
)
|
|
$
|
14.1
|
|
|
$
|
—
|
|
|
$
|
4.7
|
|
|
$
|
4.9
|
|
|
$
|
4.8
|
|
Interest expense
|
Cross-currency swaps
|
|
(5.9
|
)
|
|
(6.1
|
)
|
|
59.5
|
|
|
0.1
|
|
|
0.3
|
|
|
(0.9
|
)
|
Interest expense
|
||||||
|
|
|
|
(19.8
|
)
|
|
1.9
|
|
|
58.1
|
|
Interest income and other, net
|
|||||||||||||
Foreign currency - other
|
|
20.8
|
|
|
16.7
|
|
|
1.8
|
|
|
7.0
|
|
|
(0.3
|
)
|
|
3.0
|
|
Licensed stores revenues
|
||||||
|
|
|
|
4.4
|
|
|
(3.3
|
)
|
|
8.4
|
|
Cost of sales
|
|||||||||||||
Coffee
|
|
(1.2
|
)
|
|
(0.3
|
)
|
|
(8.1
|
)
|
|
(0.3
|
)
|
|
(7.4
|
)
|
|
(2.7
|
)
|
Cost of sales
|
||||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency
|
|
—
|
|
|
(0.1
|
)
|
|
23.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Foreign currency debt
|
|
(39.8
|
)
|
|
7.9
|
|
|
(3.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||||||
|
Location of gain/(loss) recognized in earnings
|
|
Year Ended
|
||||||||||
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|||||||
Non-Designated Derivatives:
|
|
|
|
|
|
|
|
||||||
Foreign currency - other
|
Interest income and other, net
|
|
$
|
(8.1
|
)
|
|
$
|
4.6
|
|
|
$
|
4.6
|
|
Dairy
|
Interest income and other, net
|
|
(1.9
|
)
|
|
(2.4
|
)
|
|
—
|
|
|||
Diesel fuel and other commodities
|
Interest income and other, net
|
|
(5.9
|
)
|
|
3.7
|
|
|
1.3
|
|
|||
Fair Value Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
Interest expense
|
|
54.7
|
|
|
(33.7
|
)
|
|
(5.2
|
)
|
|||
Long-term debt (hedged item)
|
Interest expense
|
|
(50.7
|
)
|
|
33.7
|
|
|
5.2
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Interest rate swaps
|
$
|
1,500
|
|
|
$
|
750
|
|
Cross-currency swaps
|
341
|
|
|
434
|
|
||
Foreign currency - other
|
1,125
|
|
|
914
|
|
||
Coffee
|
52
|
|
|
—
|
|
||
Dairy
|
1
|
|
|
16
|
|
||
Diesel fuel and other commodities
|
17
|
|
|
21
|
|
|
|
|
Derivative Assets
|
||||||
|
Balance Sheet Location
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Designated Derivative Instruments:
|
|
|
|
|
|
||||
Interest rates
|
Other long-term assets
|
|
$
|
0.1
|
|
|
$
|
—
|
|
Cross-currency swaps
|
Other long-term assets
|
|
0.2
|
|
|
5.8
|
|
||
Foreign currency - other
|
Prepaid expenses and other current assets
|
|
11.4
|
|
|
9.0
|
|
||
Other long-term assets
|
|
7.8
|
|
|
4.6
|
|
|||
Interest rate swap
|
Other long-term assets
|
|
18.2
|
|
|
—
|
|
||
Non-designated Derivative Instruments:
|
|
|
|
|
|
||||
Foreign currency
|
Prepaid expenses and other current assets
|
|
1.0
|
|
|
13.7
|
|
||
Dairy
|
Prepaid expenses and other current assets
|
|
—
|
|
|
0.2
|
|
||
Diesel fuel and other commodities
|
Prepaid expenses and other current assets
|
|
0.2
|
|
|
1.6
|
|
||
|
|
|
|
|
|
||||
|
|
|
Derivative Liabilities
|
||||||
|
Balance Sheet Location
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Designated Derivative Instruments:
|
|
|
|
|
|
||||
Interest rates
|
Other long-term liabilities
|
|
$
|
2.6
|
|
|
$
|
—
|
|
Cross-currency swaps
|
Other long-term liabilities
|
|
9.7
|
|
|
9.3
|
|
||
Foreign currency - other
|
Accrued liabilities
|
|
0.6
|
|
|
3.6
|
|
||
Other long-term liabilities
|
|
0.1
|
|
|
1.7
|
|
|||
Coffee
|
Accrued liabilities
|
|
1.0
|
|
|
—
|
|
||
Other long-term liabilities
|
|
0.1
|
|
|
—
|
|
|||
Interest rate swap
|
Other long-term liabilities
|
|
—
|
|
|
32.5
|
|
||
Non-designated Derivative Instruments:
|
|
|
|
|
|
||||
Foreign currency
|
Accrued liabilities
|
|
3.0
|
|
|
2.5
|
|
||
Dairy
|
Accrued liabilities
|
|
—
|
|
|
0.1
|
|
||
Diesel fuel and other commodities
|
Accrued liabilities
|
|
1.1
|
|
|
0.3
|
|
|
Carrying amount of hedged item
|
|
Cumulative amount of fair value hedging adjustment included in the carrying amount
|
||||||||||||
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||||||
Location on the balance sheet
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
761.8
|
|
|
$
|
711.0
|
|
|
$
|
11.8
|
|
|
$
|
(39.0
|
)
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
September 29, 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
|
$
|
2,686.6
|
|
|
$
|
2,686.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Corporate debt securities
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
||||
Total available-for-sale debt securities
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
||||
Marketable equity securities
|
66.5
|
|
|
66.5
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
70.5
|
|
|
66.5
|
|
|
4.0
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
12.6
|
|
|
—
|
|
|
12.6
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
101.2
|
|
|
—
|
|
|
101.2
|
|
|
—
|
|
||||
Auction rate securities
|
5.8
|
|
|
—
|
|
|
—
|
|
|
5.8
|
|
||||
U.S. government treasury securities
|
106.5
|
|
|
106.5
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
||||
Total long-term investments
|
220.0
|
|
|
106.5
|
|
|
107.7
|
|
|
5.8
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
26.3
|
|
|
—
|
|
|
26.3
|
|
|
—
|
|
||||
Total assets
|
$
|
3,016.0
|
|
|
$
|
2,859.6
|
|
|
$
|
150.6
|
|
|
$
|
5.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
5.7
|
|
|
$
|
1.1
|
|
|
$
|
4.6
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
12.5
|
|
|
—
|
|
|
12.5
|
|
|
—
|
|
||||
Total liabilities
|
$
|
18.2
|
|
|
$
|
1.1
|
|
|
$
|
17.1
|
|
|
$
|
—
|
|
|
|
|
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
|
|
|
—
|
|
||||
Foreign government obligations
|
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
|
$
|
50.0
|
|
|
$
|
0.4
|
|
|
$
|
49.6
|
|
|
$
|
—
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Coffee:
|
|
|
|
||||
Unroasted
|
$
|
656.5
|
|
|
$
|
588.6
|
|
Roasted
|
276.5
|
|
|
281.2
|
|
||
Other merchandise held for sale
|
288.0
|
|
|
273.1
|
|
||
Packaging and other supplies
|
308.4
|
|
|
257.6
|
|
||
Total
|
$
|
1,529.4
|
|
|
$
|
1,400.5
|
|
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||
Equity method investments
|
$
|
336.1
|
|
|
$
|
296.0
|
|
Other investments
|
59.9
|
|
|
38.7
|
|
||
Total
|
$
|
396.0
|
|
|
$
|
334.7
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Income tax receivable
|
$
|
141.1
|
|
|
$
|
955.4
|
|
Other prepaid expenses and current assets
|
347.1
|
|
|
507.4
|
|
||
Total prepaid expenses and current assets
|
$
|
488.2
|
|
|
$
|
1,462.8
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Land
|
$
|
46.8
|
|
|
$
|
46.8
|
|
Buildings
|
691.5
|
|
|
557.3
|
|
||
Leasehold improvements
|
7,948.6
|
|
|
7,372.8
|
|
||
Store equipment
|
2,659.5
|
|
|
2,400.2
|
|
||
Roasting equipment
|
769.6
|
|
|
658.8
|
|
||
Furniture, fixtures and other
|
1,799.0
|
|
|
1,659.3
|
|
||
Work in progress
|
358.5
|
|
|
501.9
|
|
||
Property, plant and equipment, gross
|
14,273.5
|
|
|
13,197.1
|
|
||
Accumulated depreciation
|
(7,841.8
|
)
|
|
(7,268.0
|
)
|
||
Property, plant and equipment, net
|
$
|
6,431.7
|
|
|
$
|
5,929.1
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Accrued occupancy costs
|
$
|
176.9
|
|
|
$
|
164.2
|
|
Accrued dividends payable
|
485.7
|
|
|
445.4
|
|
||
Accrued capital and other operating expenditures
|
703.9
|
|
|
745.4
|
|
||
Self insurance reserves
|
210.5
|
|
|
213.7
|
|
||
Accrued business taxes
|
176.7
|
|
|
183.8
|
|
||
Total accrued liabilities
|
$
|
1,753.7
|
|
|
$
|
1,752.5
|
|
(in millions)
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Trade names, trademarks and patents
|
$
|
203.4
|
|
|
$
|
215.9
|
|
Other indefinite-lived intangible assets
|
—
|
|
|
15.1
|
|
||
Total indefinite-lived intangible assets
|
$
|
203.4
|
|
|
$
|
231.0
|
|
|
Americas
|
|
International
|
|
Channel
Development |
|
Corporate and Other
|
|
Total
|
||||||||||
Goodwill balance at October 2, 2017
|
$
|
211.6
|
|
|
$
|
892.7
|
|
|
$
|
30.2
|
|
|
$
|
404.7
|
|
|
$
|
1,539.2
|
|
Acquisition/(divestiture)
|
—
|
|
|
2,164.0
|
|
|
(1.5
|
)
|
|
—
|
|
|
2,162.5
|
|
|||||
Impairment
|
—
|
|
|
(37.6
|
)
|
|
—
|
|
|
—
|
|
|
(37.6
|
)
|
|||||
Other
|
285.8
|
|
|
(15.9
|
)
|
|
6.0
|
|
|
(398.4
|
)
|
|
(122.5
|
)
|
|||||
Goodwill balance at October 1, 2018
|
$
|
497.4
|
|
|
$
|
3,003.2
|
|
|
$
|
34.7
|
|
|
$
|
6.3
|
|
|
$
|
3,541.6
|
|
Acquisition/(divestiture)
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
|||||
Impairment
|
—
|
|
|
(5.3
|
)
|
|
—
|
|
|
(5.2
|
)
|
|
(10.5
|
)
|
|||||
Other
|
(0.7
|
)
|
|
(34.0
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(34.8
|
)
|
|||||
Goodwill balance at September 30, 2019
|
$
|
496.7
|
|
|
$
|
2,958.4
|
|
|
$
|
34.7
|
|
|
$
|
1.0
|
|
|
$
|
3,490.8
|
|
|
Sep 29, 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
|
$
|
1,075.0
|
|
|
$
|
(537.2
|
)
|
|
$
|
537.8
|
|
|
$
|
1,081.7
|
|
|
$
|
(320.1
|
)
|
|
$
|
761.6
|
|
Acquired trade secrets and processes
|
27.6
|
|
|
(19.2
|
)
|
|
8.4
|
|
|
27.6
|
|
|
(16.5
|
)
|
|
11.1
|
|
||||||
Trade names, trademarks and patents
|
40.6
|
|
|
(22.9
|
)
|
|
17.7
|
|
|
33.0
|
|
|
(19.5
|
)
|
|
13.5
|
|
||||||
Licensing agreements
|
16.2
|
|
|
(12.2
|
)
|
|
4.0
|
|
|
14.3
|
|
|
(5.1
|
)
|
|
9.2
|
|
||||||
Other finite-lived intangible assets
|
22.0
|
|
|
(11.5
|
)
|
|
10.5
|
|
|
25.6
|
|
|
(9.8
|
)
|
|
15.8
|
|
||||||
Total finite-lived intangible assets
|
$
|
1,181.4
|
|
|
$
|
(603.0
|
)
|
|
$
|
578.4
|
|
|
$
|
1,182.2
|
|
|
$
|
(371.0
|
)
|
|
$
|
811.2
|
|
Fiscal Year Ending
|
|
||
2020
|
$
|
214.6
|
|
2021
|
194.0
|
|
|
2022
|
160.4
|
|
|
2023
|
2.8
|
|
|
2024
|
2.1
|
|
|
Thereafter
|
4.5
|
|
|
Total estimated future amortization expense
|
$
|
578.4
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Stated Interest Rate
|
Effective Interest Rate (1)
|
||||||||||||
Issuance
|
Face Value
|
Estimated Fair Value
|
|
Face Value
|
Estimated Fair Value
|
|
||||||||||||
December 2018 notes
|
$
|
—
|
|
$
|
—
|
|
|
$
|
350.0
|
|
$
|
350
|
|
|
2.000
|
%
|
2.012
|
%
|
November 2020 notes
|
500.0
|
|
501
|
|
|
500.0
|
|
490
|
|
|
2.200
|
%
|
2.228
|
%
|
||||
February 2021 notes
|
500.0
|
|
500
|
|
|
500.0
|
|
489
|
|
|
2.100
|
%
|
2.293
|
%
|
||||
February 2021 notes
|
250.0
|
|
250
|
|
|
250.0
|
|
244
|
|
|
2.100
|
%
|
1.600
|
%
|
||||
June 2022 notes
|
500.0
|
|
509
|
|
|
500.0
|
|
486
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
February 2023 notes
|
1,000.0
|
|
1,033
|
|
|
1,000.0
|
|
986
|
|
|
3.100
|
%
|
3.107
|
%
|
||||
October 2023 notes (2)
|
750.0
|
|
798
|
|
|
750.0
|
|
759
|
|
|
3.850
|
%
|
2.859
|
%
|
||||
March 2024 notes (3)
|
788.3
|
|
795
|
|
|
748.4
|
|
743
|
|
|
0.372
|
%
|
0.462
|
%
|
||||
August 2025 notes
|
1,250.0
|
|
1,351
|
|
|
1,250.0
|
|
1,249
|
|
|
3.800
|
%
|
3.721
|
%
|
||||
June 2026 notes
|
500.0
|
|
502
|
|
|
500.0
|
|
451
|
|
|
2.450
|
%
|
2.511
|
%
|
||||
February 2028 notes
|
600.0
|
|
644
|
|
|
600.0
|
|
576
|
|
|
3.500
|
%
|
3.529
|
%
|
||||
November 2028 notes
|
750.0
|
|
837
|
|
|
750.0
|
|
754
|
|
|
4.000
|
%
|
3.958
|
%
|
||||
May 2029 notes (4)
|
1,000.0
|
|
1,080
|
|
|
—
|
|
—
|
|
|
3.550
|
%
|
3.871
|
%
|
||||
June 2045 notes
|
350.0
|
|
390
|
|
|
350.0
|
|
330
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
December 2047 notes
|
500.0
|
|
518
|
|
|
500.0
|
|
438
|
|
|
3.750
|
%
|
3.765
|
%
|
||||
November 2048 notes
|
1,000.0
|
|
1,160
|
|
|
1,000.0
|
|
977
|
|
|
4.500
|
%
|
4.504
|
%
|
||||
May 2049 notes (4)
|
1,000.0
|
|
1,165
|
|
|
—
|
|
—
|
|
|
4.450
|
%
|
4.433
|
%
|
||||
Total
|
11,238.3
|
|
12,033
|
|
|
9,548.4
|
|
9,322
|
|
|
|
|
||||||
Aggregate debt issuance costs and unamortized premium/(discount), net
|
(83.1
|
)
|
|
|
(69.3
|
)
|
|
|
|
|
||||||||
Hedge accounting fair value adjustment (2)
|
11.8
|
|
|
|
(39.0
|
)
|
|
|
|
|
||||||||
Total
|
$
|
11,167.0
|
|
|
|
$
|
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 includes the change in fair value due to changes in benchmark interest rates related to our October 2023 notes. Refer to Note 3, Derivative Financial 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
|
1,538.3
|
|
|
Thereafter
|
6,950.0
|
|
|
Total
|
$
|
11,238.3
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Minimum rent
|
$
|
1,441.7
|
|
|
$
|
1,424.5
|
|
|
$
|
1,185.7
|
|
Contingent rent
|
224.3
|
|
|
200.7
|
|
|
143.5
|
|
|||
Total
|
$
|
1,666.0
|
|
|
$
|
1,625.2
|
|
|
$
|
1,329.2
|
|
Fiscal Year Ending
|
Operating Leases
|
|
Lease Financing Arrangements
|
||||
2020
|
$
|
1,432.9
|
|
|
$
|
5.2
|
|
2021
|
1,342.2
|
|
|
5.2
|
|
||
2022
|
1,247.4
|
|
|
5.0
|
|
||
2023
|
1,124.3
|
|
|
5.0
|
|
||
2024
|
996.4
|
|
|
4.9
|
|
||
Thereafter
|
4,087.7
|
|
|
42.6
|
|
||
Total minimum lease payments
|
$
|
10,230.9
|
|
|
$
|
67.9
|
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
September 29, 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
|
8.2
|
|
|
(10.7
|
)
|
|
(29.7
|
)
|
|
(143.7
|
)
|
|
(175.9
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.6
|
|
|
4.0
|
|
|
—
|
|
|
(1.7
|
)
|
|
2.9
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
8.8
|
|
|
(6.7
|
)
|
|
(29.7
|
)
|
|
(145.4
|
)
|
|
(173.0
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
3.9
|
|
|
$
|
11.0
|
|
|
$
|
(10.1
|
)
|
|
$
|
(508.1
|
)
|
|
$
|
(503.3
|
)
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
September 30, 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
|
(5.1
|
)
|
|
17.9
|
|
|
5.6
|
|
|
(216.6
|
)
|
|
(198.2
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
2.7
|
|
|
3.9
|
|
|
—
|
|
|
16.9
|
|
|
23.5
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(2.4
|
)
|
|
21.8
|
|
|
5.6
|
|
|
(199.7
|
)
|
|
(174.7
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(4.9
|
)
|
|
$
|
17.7
|
|
|
$
|
19.6
|
|
|
$
|
(362.7
|
)
|
|
$
|
(330.3
|
)
|
(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
|
)
|
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||||||
|
Fiscal Year Ended
|
|
||||||||||||
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|
||||||||
Gains/(losses) on available-for-sale securities
|
|
$
|
0.9
|
|
|
$
|
(3.6
|
)
|
|
$
|
(4.1
|
)
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
(3.9
|
)
|
|
(3.9
|
)
|
|
70.7
|
|
|
||||
Translation adjustment (1)
|
|
|
|
|
|
|
|
|
||||||
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
|
)
|
|
0.6
|
|
|
Interest income and other, net
|
|||
|
|
(1.3
|
)
|
|
(24.7
|
)
|
|
67.2
|
|
|
Total before tax
|
|||
|
|
(1.6
|
)
|
|
1.2
|
|
|
(14.0
|
)
|
|
Tax (expense)/benefit
|
|||
|
|
$
|
(2.9
|
)
|
|
$
|
(23.5
|
)
|
|
$
|
53.2
|
|
|
Net of tax
|
(1)
|
Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign businesses.
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Options
|
$
|
20.0
|
|
|
$
|
28.0
|
|
|
$
|
44.3
|
|
RSUs
|
288.0
|
|
|
222.3
|
|
|
131.7
|
|
|||
Total stock-based compensation expense recognized in the consolidated statements of earnings
|
$
|
308.0
|
|
|
$
|
250.3
|
|
|
$
|
176.0
|
|
Total related tax benefit
|
$
|
59.3
|
|
|
$
|
62.4
|
|
|
$
|
57.6
|
|
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
|
$
|
3.4
|
|
|
$
|
3.5
|
|
|
$
|
1.9
|
|
|
Employee Stock Options
Granted During the Period |
||||||||||
Fiscal Year Ended
|
2019
|
|
2018
|
|
2017
|
||||||
Expected term (in years)
|
4.1
|
|
|
3.6
|
|
|
3.9
|
|
|||
Expected stock price volatility
|
21.6
|
%
|
|
20.5
|
%
|
|
21.6
|
%
|
|||
Risk-free interest rate
|
2.9
|
%
|
|
2.1
|
%
|
|
1.5
|
%
|
|||
Expected dividend yield
|
2.1
|
%
|
|
2.2
|
%
|
|
1.8
|
%
|
|||
Weighted average grant price
|
$
|
67.33
|
|
|
$
|
56.56
|
|
|
$
|
56.12
|
|
Estimated fair value per option granted
|
$
|
11.06
|
|
|
$
|
7.32
|
|
|
$
|
8.56
|
|
|
Shares
Subject to Options |
|
Weighted
Average Exercise Price per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding, September 30, 2018
|
27.3
|
|
|
$
|
42.13
|
|
|
5.2
|
|
$
|
418
|
|
Granted
|
0.5
|
|
|
67.33
|
|
|
|
|
|
|||
Exercised
|
(11.6
|
)
|
|
32.46
|
|
|
|
|
|
|||
Expired/forfeited
|
(1.0
|
)
|
|
56.13
|
|
|
|
|
|
|||
Outstanding, September 29, 2019
|
15.2
|
|
|
49.45
|
|
|
5.0
|
|
592
|
|
||
Exercisable, September 29, 2019
|
10.2
|
|
|
45.38
|
|
|
3.7
|
|
440
|
|
||
Vested and expected to vest, September 29, 2019
|
14.9
|
|
|
49.33
|
|
|
5.0
|
|
583
|
|
|
Number
of Shares |
|
Weighted
Average Grant Date Fair Value per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Nonvested, September 30, 2018
|
11.2
|
|
|
$
|
55.62
|
|
|
1.0
|
|
$
|
636
|
|
Granted
|
4.6
|
|
|
68.14
|
|
|
|
|
|
|||
Vested
|
(4.6
|
)
|
|
55.71
|
|
|
|
|
|
|||
Forfeited/canceled
|
(2.3
|
)
|
|
59.88
|
|
|
|
|
|
|||
Nonvested, September 29, 2019
|
8.9
|
|
|
62.56
|
|
|
1.1
|
|
788
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
United States
|
$
|
3,518.7
|
|
|
$
|
4,826.0
|
|
|
$
|
3,393.0
|
|
Foreign
|
947.5
|
|
|
954.0
|
|
|
924.5
|
|
|||
Total earnings before income taxes
|
$
|
4,466.2
|
|
|
$
|
5,780.0
|
|
|
$
|
4,317.5
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Current taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
1,414.3
|
|
|
$
|
156.2
|
|
|
$
|
931.0
|
|
U.S. state and local
|
447.8
|
|
|
52.0
|
|
|
170.8
|
|
|||
Foreign
|
458.3
|
|
|
327.0
|
|
|
216.6
|
|
|||
Total current taxes
|
2,320.4
|
|
|
535.2
|
|
|
1,318.4
|
|
|||
Deferred taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
(1,074.5
|
)
|
|
633.7
|
|
|
121.2
|
|
|||
U.S. state and local
|
(322.4
|
)
|
|
101.5
|
|
|
14.2
|
|
|||
Foreign
|
(51.9
|
)
|
|
(8.4
|
)
|
|
(21.2
|
)
|
|||
Total deferred taxes
|
(1,448.8
|
)
|
|
726.8
|
|
|
114.2
|
|
|||
Total income tax expense
|
$
|
871.6
|
|
|
$
|
1,262.0
|
|
|
$
|
1,432.6
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|||
Statutory rate
|
21.0
|
%
|
|
24.5
|
%
|
|
35.0
|
%
|
State income taxes, net of federal tax benefit
|
2.1
|
|
|
2.1
|
|
|
2.8
|
|
Foreign rate differential
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(2.8
|
)
|
Excess tax benefits of stock-based compensation
|
(2.1
|
)
|
|
(0.9
|
)
|
|
—
|
|
Residual tax on foreign earnings
|
1.7
|
|
|
—
|
|
|
—
|
|
Foreign derived intangible income
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
Tax impacts related to sale of certain operations
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
Domestic production activity deduction
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
Impact of the Tax Act
|
—
|
|
|
2.8
|
|
|
—
|
|
Other, net
|
(0.3
|
)
|
|
(0.8
|
)
|
|
—
|
|
Effective tax rate
|
19.5
|
%
|
|
21.8
|
%
|
|
33.2
|
%
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Property, plant and equipment
|
$
|
66.5
|
|
|
$
|
67.4
|
|
Intangible assets and goodwill
|
230.0
|
|
|
—
|
|
||
Accrued occupancy costs
|
121.6
|
|
|
109.0
|
|
||
Accrued compensation and related costs
|
62.7
|
|
|
64.2
|
|
||
Stored value card liability and deferred revenue
|
1,649.0
|
|
|
144.2
|
|
||
Stock-based compensation
|
77.5
|
|
|
96.7
|
|
||
Net operating losses
|
75.6
|
|
|
79.2
|
|
||
Other
|
130.7
|
|
|
129.5
|
|
||
Total
|
$
|
2,413.6
|
|
|
$
|
690.2
|
|
Valuation allowance
|
(75.1
|
)
|
|
(129.3
|
)
|
||
Total deferred tax asset, net of valuation allowance
|
$
|
2,338.5
|
|
|
$
|
560.9
|
|
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(400.9
|
)
|
|
(348.1
|
)
|
||
Intangible assets and goodwill
|
(209.9
|
)
|
|
(274.2
|
)
|
||
Other
|
(148.3
|
)
|
|
(74.1
|
)
|
||
Total
|
(759.1
|
)
|
|
(696.4
|
)
|
||
Net deferred tax asset (liability)
|
$
|
1,579.4
|
|
|
$
|
(135.5
|
)
|
Reported as:
|
|
|
|
||||
Deferred income tax assets
|
1,765.8
|
|
|
134.7
|
|
||
Deferred income tax liabilities (included in Other long-term liabilities)
|
(186.4
|
)
|
|
(270.2
|
)
|
||
Net deferred tax asset (liability)
|
$
|
1,579.4
|
|
|
$
|
(135.5
|
)
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Beginning balance
|
$
|
224.6
|
|
|
$
|
196.9
|
|
|
$
|
146.5
|
|
Increase related to prior year tax positions
|
3.8
|
|
|
17.5
|
|
|
10.4
|
|
|||
Decrease related to prior year tax positions
|
(75.3
|
)
|
|
(41.8
|
)
|
|
—
|
|
|||
Increase related to current year tax positions
|
18.5
|
|
|
62.4
|
|
|
41.3
|
|
|||
Decreases related to settlements with taxing authorities
|
(16.4
|
)
|
|
(4.5
|
)
|
|
—
|
|
|||
Decrease related to lapsing of statute of limitations
|
(23.1
|
)
|
|
(5.9
|
)
|
|
(1.3
|
)
|
|||
Ending balance
|
$
|
132.1
|
|
|
$
|
224.6
|
|
|
$
|
196.9
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Net earnings attributable to Starbucks
|
$
|
3,599.2
|
|
|
$
|
4,518.3
|
|
|
$
|
2,884.7
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,221.2
|
|
|
1,382.7
|
|
|
1,449.5
|
|
|||
Dilutive effect of outstanding common stock options and RSUs
|
12.0
|
|
|
11.9
|
|
|
12.0
|
|
|||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,233.2
|
|
|
1,394.6
|
|
|
1,461.5
|
|
|||
EPS — basic
|
$
|
2.95
|
|
|
$
|
3.27
|
|
|
$
|
1.99
|
|
EPS — diluted
|
$
|
2.92
|
|
|
$
|
3.24
|
|
|
$
|
1.97
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|||||||||||||||
Beverage
|
$
|
15,921.2
|
|
|
60
|
%
|
|
$
|
14,463.1
|
|
|
59
|
%
|
|
$
|
12,915.0
|
|
|
58
|
%
|
Food
|
4,792.8
|
|
|
18
|
%
|
|
4,397.7
|
|
|
18
|
%
|
|
3,832.1
|
|
|
17
|
%
|
|||
Packaged and single-serve coffees and teas
|
2,126.8
|
|
|
8
|
%
|
|
2,797.5
|
|
|
11
|
%
|
|
2,883.6
|
|
|
13
|
%
|
|||
Other (1)
|
3,667.8
|
|
|
14
|
%
|
|
3,061.2
|
|
|
12
|
%
|
|
2,756.1
|
|
|
12
|
%
|
|||
Total
|
$
|
26,508.6
|
|
|
100
|
%
|
|
$
|
24,719.5
|
|
|
100
|
%
|
|
$
|
22,386.8
|
|
|
100
|
%
|
(1)
|
“Other” primarily consists of royalty and licensing revenues, beverage-related ingredients, serveware, and ready-to-drink beverages, among other items.
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Net revenues:
|
|
|
|
|
|
||||||
United States
|
$
|
18,622.7
|
|
|
$
|
17,409.4
|
|
|
$
|
16,527.1
|
|
Other countries
|
7,885.9
|
|
|
7,310.1
|
|
|
5,859.7
|
|
|||
Total
|
$
|
26,508.6
|
|
|
$
|
24,719.5
|
|
|
$
|
22,386.8
|
|
|
|
|
|
|
|
||||||
Long-lived assets:
|
|
|
|
|
|
||||||
United States
|
$
|
7,330.2
|
|
|
$
|
5,635.9
|
|
|
$
|
5,848.3
|
|
Other countries
|
6,235.5
|
|
|
6,026.3
|
|
|
3,234.0
|
|
|||
Total
|
$
|
13,565.7
|
|
|
$
|
11,662.2
|
|
|
$
|
9,082.3
|
|
(in millions)
|
Americas
|
|
International
|
|
Channel
Development
|
|
Corporate and Other
|
|
Total
|
||||||||||
Fiscal 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
18,259.0
|
|
|
$
|
6,190.7
|
|
|
$
|
1,992.6
|
|
|
$
|
66.3
|
|
|
$
|
26,508.6
|
|
Depreciation and amortization expenses
|
696.1
|
|
|
511.5
|
|
|
13.0
|
|
|
156.7
|
|
|
1,377.3
|
|
|||||
Income from equity investees
|
—
|
|
|
102.4
|
|
|
195.6
|
|
|
—
|
|
|
298.0
|
|
|||||
Operating income/(loss)
|
3,782.8
|
|
|
964.7
|
|
|
697.5
|
|
|
(1,367.1
|
)
|
|
4,077.9
|
|
|||||
Total assets
|
$
|
4,446.7
|
|
|
$
|
6,724.6
|
|
|
$
|
132.2
|
|
|
$
|
7,916.1
|
|
|
$
|
19,219.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiscal 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
16,748.6
|
|
|
$
|
5,551.2
|
|
|
$
|
2,297.3
|
|
|
$
|
122.4
|
|
|
$
|
24,719.5
|
|
Depreciation and amortization expenses
|
641.0
|
|
|
447.6
|
|
|
1.3
|
|
|
157.1
|
|
|
1,247.0
|
|
|||||
Income from equity investees
|
—
|
|
|
117.4
|
|
|
183.8
|
|
|
—
|
|
|
301.2
|
|
|||||
Operating income/(loss)
|
3,485.2
|
|
|
872.8
|
|
|
927.1
|
|
|
(1,401.8
|
)
|
|
3,883.3
|
|
|||||
Total assets
|
$
|
4,473.7
|
|
|
$
|
6,361.9
|
|
|
$
|
148.2
|
|
|
$
|
13,172.6
|
|
|
$
|
24,156.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiscal 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
15,629.4
|
|
|
$
|
4,204.3
|
|
|
$
|
2,256.6
|
|
|
$
|
296.5
|
|
|
$
|
22,386.8
|
|
Depreciation and amortization expenses
|
616.1
|
|
|
233.2
|
|
|
3.0
|
|
|
159.1
|
|
|
1,011.4
|
|
|||||
Income from equity investees
|
—
|
|
|
197.0
|
|
|
194.4
|
|
|
—
|
|
|
391.4
|
|
|||||
Operating income/(loss)
|
3,577.2
|
|
|
835.6
|
|
|
967.0
|
|
|
(1,245.1
|
)
|
|
4,134.7
|
|
|||||
Total assets
|
$
|
3,374.9
|
|
|
$
|
3,117.1
|
|
|
$
|
129.1
|
|
|
$
|
7,744.5
|
|
|
$
|
14,365.6
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
||||||||||
Fiscal 2019:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
6,632.7
|
|
|
$
|
6,305.9
|
|
|
$
|
6,823.0
|
|
|
$
|
6,747.0
|
|
|
$
|
26,508.6
|
|
Operating income
|
1,015.7
|
|
|
857.7
|
|
|
1,121.3
|
|
|
1,083.3
|
|
|
4,077.9
|
|
|||||
Net earnings attributable to Starbucks
|
760.6
|
|
|
663.2
|
|
|
1,372.8
|
|
|
802.9
|
|
|
3,599.2
|
|
|||||
EPS — diluted
|
0.61
|
|
|
0.53
|
|
|
1.12
|
|
|
0.67
|
|
|
2.92
|
|
|||||
Fiscal 2018:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
6,073.7
|
|
|
$
|
6,031.8
|
|
|
$
|
6,310.3
|
|
|
$
|
6,303.6
|
|
|
$
|
24,719.5
|
|
Operating income
|
1,116.1
|
|
|
772.5
|
|
|
1,038.2
|
|
|
956.6
|
|
|
3,883.3
|
|
|||||
Net earnings attributable to Starbucks
|
2,250.2
|
|
|
660.1
|
|
|
852.5
|
|
|
755.8
|
|
|
4,518.3
|
|
|||||
EPS — diluted
|
1.57
|
|
|
0.47
|
|
|
0.61
|
|
|
0.56
|
|
|
3.24
|
|
•
|
We tested the effectiveness of controls over management’s goodwill impairment evaluation, including the controls related to management’s forecast of future revenues
|
•
|
We evaluated management’s ability to accurately forecast future revenues by comparing actual results to management’s historical forecast
|
•
|
We assessed the reasonableness of the forecast of future revenues by comparing the forecast to:
|
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 September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
Consolidated Statements of Comprehensive Income for the fiscal years ended September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
Consolidated Balance Sheets as of September 29, 2019 and September 30, 2018;
|
•
|
Consolidated Statements of Cash Flows for the fiscal years ended September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
Consolidated Statements of Equity for the fiscal years ended September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
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
|
|
|
8-K
|
|
0-20322
|
|
5/7/2018
|
|
2.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
3.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
6/5/2018
|
|
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
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
11/22/2017
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
11/22/2017
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
11/22/2017
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
2/28/2018
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
2/28/2018
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
2/28/2018
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.5
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/13/2019
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/13/2019
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/13/2019
|
|
4.4
|
|
|
||
|
|
|
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
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
10-Q
|
|
0-20322
|
|
8/1/2017
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
7/30/2019
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
2/4/2011
|
|
10.2
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.9
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.5
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/14/2006
|
|
10.12
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.7
|
|
|
||
|
|
|
10-Q
|
|
0-20322
|
|
2/10/2006
|
|
10.2
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.9
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
5/2/2012
|
|
10.1
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.14
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
4/26/2016
|
|
10.2
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
4/26/2016
|
|
10.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
10/30/2017
|
|
10.1
|
|
|
||
|
|
|
8-K
|
|
0-20322
|
|
10/26/2018
|
|
10.1
|
|
|
|
|
|
8-K
|
|
0-20322
|
|
10/25/2019
|
|
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
7/29/2016
|
|
10.1
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.30
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.21
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.22
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/17/2017
|
|
10.24
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
10-K
|
|
0-20322
|
|
11/17/2017
|
|
10.25
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.23
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/17/2017
|
|
10.26
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
10-Q
|
|
0-20322
|
|
4/29/2014
|
|
10.3
|
|
|
||
|
|
8-K/A
|
|
0-20322
|
|
6/29/2018
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
2/2/2010
|
|
10.3
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/14/2014
|
|
10.33
|
|
|
||
|
|
|
10-Q
|
|
0-20322
|
|
5/2/2017
|
|
10.1
|
|
|
|
|
|
8-K
|
|
0-20322
|
|
9/6/2017
|
|
10.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
10/9/2018
|
|
10.1
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
__
|
|
__
|
|
__
|
|
__
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
||
101
|
|
The following financial statements from the Company’s 10-K for the fiscal year ended September 29, 2019, formatted in iXBRL: (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity, and (vi) Notes to Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
*
|
Denotes a management contract or compensatory plan or arrangement.
|
**
|
Furnished herewith.
|
|
|
|
|
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/ Patrick J. Grismer
|
|
executive vice president, chief financial officer
(principal financial officer)
|
|
|
Patrick J. Grismer
|
|
|
|
|
|
|
|
By:
|
|
/s/ Jill L. Walker
|
|
senior vice president, Corporate Financial Services, and chief accounting officer (principal accounting officer)
|
|
|
Jill L. Walker
|
|
|
|
|
|
|
|
By:
|
|
/s/ Richard E. Allison, Jr.
|
|
director
|
|
|
Richard E. Allison, Jr.
|
|
|
|
|
|
|
|
By:
|
|
/s/ Rosalind G. Brewer
|
|
director
|
|
|
Rosalind G. Brewer
|
|
|
|
|
|
|
|
By:
|
|
/s/ Andrew Campion
|
|
director
|
|
|
Andrew Campion
|
|
|
|
|
|
|
|
By:
|
|
/s/ Mary N. Dillon
|
|
director
|
|
|
Mary N. Dillon
|
|
|
|
|
|
|
|
By:
|
|
/s/ Mellody Hobson
|
|
director
|
|
|
Mellody Hobson
|
|
|
|
|
|
|
|
By:
|
|
/s/ Jørgen Vig Knudstorp
|
|
director
|
|
|
Jørgen Vig Knudstorp
|
|
|
|
|
|
|
|
By:
|
|
/s/ Isabel Ge Mahe
|
|
director
|
|
|
Isabel Ge Mahe
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
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
|
|
|
Participant:
|
|
Number of Units:
|
|
Date of Grant:
|
November 13, 2019
|
Vesting Schedule:
|
25% on 1st Anniversary of Date of Grant
25% on 2nd Anniversary of Date of Grant
25% on 3rd Anniversary of Date of Grant
25% on 4th Anniversary of Date of Grant
|
1.
|
Vesting Schedule; Form and Timing of Payment of Vested Restricted Stock Units. Subject to the terms and conditions of this Agreement and the Plan, a number of the Restricted Stock Units will vest as set forth above, subject to the Participant’s continued Active Status through the applicable Vesting Date (except as provided in Sections 3.2, 3.3 or 3.4 below). Any Restricted Stock Units that vest will be paid to the Participant solely in whole Shares (and not in cash, as the Plan permits) on, or within thirty (30) days after, the relevant Vesting Date on which the Restricted Stock Units vest in accordance with this Section 1 (or, if earlier, upon a vesting event contemplated under Sections 3.2 or 3.4 below, as applicable), subject to any delayed payment required under Section 6 below.
|
2.
|
Dividend Equivalents. On each date that a cash dividend is paid to holders of Shares, an amount (the “Dividend Equivalent Amount”) equal to the cash dividend that is paid on each Share, multiplied by the number of Shares subject to the Restricted Stock Units and any Dividend Equivalent RSUs (as defined below) that remain unvested and outstanding as of the dividend payment date, shall be credited for the benefit of the Participant, and such credited amount shall be converted into an additional number of Restricted Stock Units (“Dividend Equivalent RSUs”) determined by dividing the Dividend Equivalent Amount by the Fair Market Value of a Share on the dividend payment date, rounded up or down to the nearest whole number. Dividend Equivalent RSUs will be subject to the same conditions as the underlying Restricted Stock Units with respect to which the Dividend Equivalent RSUs were paid, including, without limitation, the vesting conditions and the provisions governing time and form of settlement applicable to the underlying Restricted Stock Units. Unless expressly provided otherwise, as used elsewhere in this Agreement “Restricted Stock Units” shall include any Dividend Equivalent RSUs that have been credited to the Participant’s account.
|
3.1
|
Termination of Employment. Except as provided in Sections 3.1, 3.3 or 3.4 below, any unvested Restricted Stock Units subject to this Agreement shall immediately terminate and be automatically forfeited by the Participant to the Company upon the termination of the Participant’s Active Status for any reason (as further described in Section 8(l) below), including without limitation, voluntary termination by the Participant, or termination by the Company or any Subsidiary or affiliate of the Company because of Misconduct.
|
3.2
|
Change of Control. Upon a Change of Control, the vesting of the Restricted Stock Units shall accelerate, and the Restricted Stock Units shall become fully vested and payable to the extent and under the terms and conditions set forth in the Plan; provided that for purposes of this Section 3.2, “Resignation (or Resign) for Good Reason” shall have the following meaning:
|
3.3
|
Retirement. If the Participant’s Active Status terminates due to Retirement, the Participant will continue to vest in all unvested Restricted Stock Units as if the Participant’s Active Status had not terminated, subject to and conditioned upon compliance with the terms of Section 4 through each Vesting Date.
|
3.4
|
Disability or Death. If the Participant’s Active Status terminates due to Disability or death, all unvested Restricted Stock Units will vest in full as of the date of termination of Active Status due to Disability or death.
|
4.
|
Misconduct. As a condition to receiving and becoming eligible to vest in the Restricted Stock Units, the Participant hereby agrees not to engage in Misconduct.
|
5.
|
Clawback. If the Company determines, in its sole discretion, that the Participant has engaged in Misconduct, the Participant agrees and covenants that (a) any unvested portion of the Restricted Stock Units shall be immediately forfeited as of the date the Company determines that the Participant has engaged in Misconduct (the “Determination Date”); (b) if any part of the Restricted Stock Units vested and were settled prior to the Determination Date, upon the Company’s demand, the Participant shall immediately deliver to the Company (i) the Shares that the Participant acquired upon settlement of such Restricted Stock Units and (ii) to the extent any such Shares were previously sold by the Participant, a cash amount equal to the Fair Market Value as of the Determination Date of the Shares contemplated to be returned to the Company under this clause; and (c) the foregoing remedies set forth in this Section Error! Reference source not found. shall not be the Company’s exclusive remedies, which shall include, among other remedies, injunctive relief and damages that may be available to the Company. The Company reserves all other rights and remedies available to it at law or in equity.
|
6.
|
Code Section 409A. The provisions in this Section 6 shall apply if the Participant is subject to taxation in the United States.
|
6.1
|
To the extent the Restricted Stock Units constitute “nonqualified deferred compensation” that is subject to Code Section 409A (“NQ Deferred Compensation”), any Restricted Stock Units that are payable upon or with reference to the date that the Participant’s Active Service terminates (i) shall not be paid unless the Participant experiences a “separation from service” within the meaning of Code Section 409A and (ii) if the Participant is a “specified employee” within the meaning of Code Section 409A on the date of the Participant’s separation from service, then the Restricted Stock Units shall be paid on the first business day of the seventh month following the Participant’s separation from service, or, if earlier, on the date of the Participant’s death, to the extent such delayed payment is required in order to avoid a prohibited distribution under Code Section 409A.
|
6.2
|
This Award and payments made pursuant to this Agreement and the Plan are intended to qualify for an exemption from or comply with Code Section 409A. Notwithstanding any other provision in this Agreement and the Plan, the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Agreement and/or the Plan so that the Restricted Stock Units granted to the Participant qualify for exemption from or comply with Code Section 409A; provided, however, that the Company makes no representations that the Restricted Stock Units shall be exempt from or comply with Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Restricted Stock Units. Nothing in this Agreement or the Plan shall provide a basis for any person to take action against the Company or any Subsidiary or affiliate of the Company based on matters covered by Code Section 409A, including the tax treatment of any amount paid or Award made under this Agreement, and neither the Company nor any of its Subsidiaries or affiliates shall under any circumstances have any liability to any Participant or his or her estate or any other party for any taxes, penalties or interest imposed under Code Section 409A for any amounts paid or payable under this Agreement.
|
6.3
|
If the vesting of the Restricted Stock Units is accelerated upon a Change of Control, the Restricted Stock Units are considered NQ Deferred Compensation, and the Change of Control does not constitute a “change in control event,” within the meaning of the U.S. Treasury Regulations, then the cash equivalent of the Restricted Stock Units calculated as of the date of the Change in Control shall be paid on the earliest of the applicable Vesting Date, the date of the Participant’s death or the date the Participant’s Active Status terminates due to Disability.
|
7.
|
Responsibility for Taxes. Regardless of any action the Company or, if different, the Participant’s employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, fringe benefit tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed the amount, if any, actually withheld by the Company or the Employer. The Participant further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Restricted Stock Units, including, but not limited to the grant of the Restricted Stock Units, the vesting or settlement of the Restricted Stock Units, the issuance of Shares in settlement of the Restricted Stock Units, the subsequent sale of Shares acquired at vesting and the receipt of any dividends and/or any dividend equivalents; and (ii) do not commit to and are under no obligation to structure the terms of the Award or any aspect of the Restricted Stock Units to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. Furthermore, if the Participant is subject to tax in more than one jurisdiction, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
|
(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
|
8.
|
Nature of Grant. In accepting the Award, the Participant acknowledges, understands and agrees that:
|
(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 exceptional, 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 and shall not interfere with the ability of the Employer 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 any purpose, including, but not limited to, 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, 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 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)
|
neither the Company, the Employer nor any other Subsidiary or affiliate of the Company shall be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the Restricted Stock Units or of any amounts due to the Participant pursuant to the settlement of the Restricted Stock Units or the subsequent sale of any Shares acquired upon settlement.
|
9.
|
No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares. The Participant should consult with his or her own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any action related to the Plan.
|
10.
|
Data Privacy.
|
a)
|
Data Collection and Usage. The Company and the Employer collect, process and use certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, email address, date of birth, social insurance, passport or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all restricted stock units or any other entitlement to Shares or equivalent benefits awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor (“Data”), for the legitimate purpose of implementing, administering and managing the Plan. The legal basis, where required, for the processing of Data is the Participant’s consent.
|
b)
|
Stock Plan Administration Service Providers. The Company transfers Data to Fidelity Plan Services, LLC and its affiliated companies (collectively, “Fidelity”), an independent service provider based in the United States, which is assisting the Company with the implementation, administration and management of the Plan. The Company may select a different service provider or additional service providers and share Data with such other provider(s) serving in a similar manner. The Participant may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being a condition to the ability to participate in the Plan.
|
c)
|
International Data Transfers. The Company and Fidelity are based in the United States. The Participant’s country or jurisdiction may have different data privacy laws and protections than the United States. For example, the European Commission has issued a limited adequacy finding with respect to the United States that applies only to the extent companies register for the EU-U.S. Privacy Shield program. The Company is registered for this program, but only with respect to non-HR related
|
d)
|
Data Retention. The Company will hold and use Data only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan, or as required to comply with legal or regulatory obligations, including under tax, securities, exchange control and labor laws. This means Data may be retained until after termination of your Active Service.
|
e)
|
Voluntariness and Consequences of Consent Denial or Withdrawal. Participation in the Plan is voluntary and the Participant is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke his or her consent, the Participant’s salary from or employment and career with the Employer will not be affected; the only consequence of refusing or withdrawing the Participant’s consent is that the Company would not be able to grant Restricted Stock Units or other equity awards to the Participant or administer or maintain such awards.
|
f)
|
Data Subject Rights. The Participant may have a number of rights under data privacy laws in his or her jurisdiction. Depending on where the Participant is based, such rights may include the right to (i) request access or copies of Data the Company processes, (ii) rectification of incorrect Data, (iii) deletion of Data, (iv) restrictions on processing of Data, (v) portability of Data, (vi) lodge complaints with competent authorities in the Participant’s jurisdiction, and/or (vii) receive a list with the names and addresses of any potential recipients of Data. To receive clarification regarding these rights or to exercise these rights, the Participant can contact his or her local human resources representative.
|
11.
|
Governing Law/Choice of Venue. The Award and the provisions of this Agreement are governed by, and subject to, the laws of the State of Washington, as provided in the Plan, without regard for its conflict of laws provisions. For purposes of litigating any dispute that arises under this grant or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of Washington, and agree that such litigation shall be conducted exclusively in the courts of King County, or the federal courts of the United States for the 9th Circuit, and no other courts, where this grant is made and/or to be performed.
|
12.
|
Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares issuable upon settlement of the Restricted Stock Units prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable. The Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. Further, the Participant agrees that the Company shall have unilateral authority to amend the Plan and this Agreement without the Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares.
|
13.
|
Language. The Participant acknowledges and represents that he or she is proficient in the English language or has consulted with an advisor who is sufficiently proficient in English, as to allow the Participant to understand the terms of this Agreement and any other documents related to the Plan. If the Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
|
14.
|
Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company.
|
15.
|
Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
16.
|
Undertakings. The Participant hereby agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either the Participant or the Restricted Stock Units pursuant to the provisions of this Agreement.
|
17.
|
No Rights as Shareholder. Except as otherwise provided in Section 2, the Participant will not have dividend, voting or any other rights as a shareholder of the Shares with respect to the Restricted Stock Units. Upon payment of the vested Restricted Stock Units in Shares, the Participant will obtain full dividend, voting and other rights as a shareholder of the Company.
|
18.
|
Restrictions on Transfer. Notwithstanding anything in the Plan to the contrary, the Restricted Stock Units granted pursuant to this Award may not be sold, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose), assigned, hypothecated, transferred, disposed of in exchange for consideration, made subject to attachment or similar proceedings, or otherwise disposed of under any circumstances, except that this Award may be transferred (i) by will or by laws of descent and distribution applicable to a deceased Participant or (ii) pursuant to a domestic relations order.
|
19.
|
Appendix A. Notwithstanding any provisions in this Global Key Employee Restricted Stock Unit Grant Agreement, the Award of Restricted Stock Units shall be subject to any special terms and conditions set forth in Appendix A for the Participant’s country. Moreover, if the Participant relocates to one of the countries included in Appendix A, the special terms and conditions for such country will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix A constitutes part of this Global Key Employee Restricted Stock Unit Global Key Employee Restricted Stock Unit Grant Agreement.
|
20.
|
Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the Restricted Stock Units and on any Shares acquired under the Plan, to the extent that the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings (as provided in Section 16 above) that may be necessary to accomplish the foregoing.
|
21.
|
Waiver. If the Participant breaches or otherwise does not comply with any provision of this Agreement, but the Company does not act upon this breach or non-compliance and continues to comply with its obligations under this Agreement, this shall not mean that the Company waives any other provision of this Agreement or will otherwise permit any further breach of or non-compliance with any provision of this Agreement.
|
22.
|
Insider Trading/Market Abuse Laws. Depending on the Participant’s country or the country in which Shares are listed, the Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, including the United States and, if different, the Participant’s country, the Participant’s broker’s country and/or the country where the Shares are listed, which may affect the Participant’s ability, directly or indirectly, for the Participant him- or herself or for a third party, to accept, acquire, sell or attempt to sell, or otherwise dispose of Shares, rights to Shares (e.g., Restricted Stock Units) or rights linked to the value of Shares during such times as the Participant is considered to have “inside information” regarding the Company (as defined by the laws or regulations in the applicable jurisdiction). Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Participant placed before possessing inside information. Furthermore, the Participant may be prohibited from (i) disclosing insider information to any third
|
23.
|
Foreign Asset/Account Reporting; Exchange Controls. The Participant’s country may have certain foreign asset and/or account reporting requirements and/or exchange controls which may affect the Participant’s ability to acquire or hold Shares under the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of Shares) in a brokerage or bank account outside the Participant’s country. The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in his or her country. The Participant also may be required to repatriate sale proceeds or other funds received as a result of the Participant’s participation in the Plan to his or her country through a designated bank or broker and/or within a certain time after receipt. The Participant acknowledges that it is his or her responsibility to comply with such regulations, and the Participant should consult his or her personal legal advisor for any details.
|
Partner Name:
|
|
Target Restricted Stock Units:
|
|
Date of Grant:
|
|
Performance Period:
|
|
1.
|
Vesting Schedule. The number of Performance RSUs granted under the Award that actually vest and that will be settled shall be determined pursuant to a two-step process: (i) first the maximum number of Performance RSUs that are eligible to vest shall be determined as provided under Section 1.1 hereof on the basis of the level at which the Performance Goals specified on attached Schedule I are actually attained and (ii) then the maximum number of Performance RSUs calculated under clause (i) that will actually vest shall be determined on the basis of the Participant’s completion of the requirements set forth in Section 1.2 hereof.
|
1.1
|
Performance Goal Requirements. The attached Schedule I specifies the Performance Goals required to be attained during the Performance Period in order for the Performance RSUs to become eligible to vest. As soon as reasonably practicable following the end of the Performance Period, the Committee shall determine in its sole discretion the attainment level of the Performance Goals. On the basis of the determined level of attainment of the Performance Goals, the Target RSUs will be multiplied by the applicable percentage determined in accordance with the performance matrix set forth in Schedule I. The number of Performance RSUs resulting from such determination shall constitute the maximum number of Performance RSUs in which the Participant may vest under this Award (the “Earned Performance RSUs”).
|
1.2
|
Active Status Vesting. Subject to the terms and conditions of this Award, a number of Earned Performance RSUs will vest as detailed in the attached Schedule I of this Agreement, subject to the Participant’s continued Active Status through the date the Performance RSUs are paid pursuant to Section 3.
|
2.
|
Dividend Equivalents. On each date that a cash dividend is paid to holders of Shares during the Performance Period, an amount (the “Dividend Equivalent Amount”) equal to the cash dividend that is paid on each Share, multiplied by the number of Shares subject to the Target RSUs and any Dividend Equivalent RSUs (as defined below) that remain unvested and outstanding as of the dividend payment date, shall be credited for the benefit of the Participant, and such credited amount shall be converted into an additional number of Performance RSUs (“Dividend Equivalent RSUs”) determined by dividing the Dividend Equivalent Amount by the Fair Market Value of a Share on the dividend payment date, rounded up or down to the nearest whole number. At the end of the Performance Period, the number of Dividend Equivalent RSUs will be adjusted to reflect the number of Dividend Equivalent RSUs that would have been credited to the Participant as of the Date of Grant if such calculations had been based on the number of Earned Performance RSUs (such adjusted number, the “Earned Dividend Equivalent RSUs”). During the period beginning immediately following the last day of the Performance Period and ending on the date the Performance RSUs granted hereunder are paid pursuant to Section 3 below,
|
3.
|
Form and Timing of Payment of Vested Performance RSUs. Subject to the terms and conditions of this Agreement and the Plan, any Performance RSUs that vest will be paid to the Participant solely in whole Shares (and not in cash, as the Plan permits), on, or within sixty (60) days after, (i) the last day of the Performance Period, including upon a vesting resulting from the Participant’s termination due the Participant’s Retirement pursuant to Section 4.3 below or from the Participant’s termination prior to the last day of the Performance Period resulting from the Participant’s termination due to death or Disability pursuant to Section 4.4 below or (ii) a vesting event contemplated in Section 4.2 below or vesting event resulting from the Participant’s termination following the last day of the Performance Period resulting from the Participant’s termination due to death or Disability pursuant to Section 4.4 below.
|
4.
|
Termination of Employment; Change of Control.
|
4.1
|
Termination of Employment. Except as provided in Sections 4.2, 4.3 or 4.4 below, any unvested Performance RSUs subject to this Agreement shall immediately terminate and be automatically forfeited by the Participant to the Company upon the termination of the Participant’s Active Status for any reason (as further described in Section 9(l) below), including without limitation, voluntary termination by the Participant, or termination by the Company or any Subsidiary or affiliate of the Company because of Misconduct.
|
4.2
|
Change of Control. Upon a Change of Control, the vesting of the Performance RSUs shall accelerate, and the Performance RSUs shall become fully vested and payable to the extent and under the terms and conditions set forth in the Plan; provided that, for purposes of this Section 4.2, "Resignation (or Resign) for Good Reason" shall have the following meaning:
|
4.3
|
Retirement. If the Participant’s Active Status terminates due to Retirement on a day following the date that is six (6) months after the Date of Grant, the Participant will continue to be eligible to vest in a number of Performance RSUs equal to the Earned Performance RSUs.
|
4.4
|
Death or Disability. If the Participant’s Active Status terminates due to Disability or death on or prior to the last day of the Performance Period, a number of Performance RSUs equal to the Target RSUs will
|
5.
|
Misconduct. As a condition to receiving and becoming eligible to vest in the Performance RSUs, the Participant hereby agrees not to engage in Misconduct.
|
6.
|
Clawback. If the Company determines, in its sole discretion, that the Participant has engaged in Misconduct, the Participant agrees and covenants that (a) any unvested portion of the Performance RSUs shall be immediately forfeited as of the date the Company determines that the Participant has engaged in Misconduct (the "Determination Date"); (b) if any part of the Performance RSUs vested and were settled prior to the Determination Date, upon the Company’s demand, the Participant shall immediately deliver to the Company (i) the Shares that the Participant acquired upon settlement of such Performance RSUs, and (ii) to the extent any of such Shares were previously sold by the Participant, a cash amount equal to the Fair Market Value as of the Determination Date of the Shares contemplated to be returned to the Company under this clause; and (c) the foregoing remedies set forth in this Section 6 shall not be the Company’s exclusive remedies, which shall include, among other remedies, injunctive relief and damages that may be available to the Company. The Company reserves all other rights and remedies available to it at law or in equity.
|
7.
|
Code Section 409A. The provisions in this Section 7 shall apply if the Participant is subject to taxation in the United States.
|
7.1
|
To the extent the Performance RSUs constitute "nonqualified deferred compensation" that is subject to Code Section 409A ("NQ Deferred Compensation"), any Performance RSUs that are payable upon or with reference to the date that the Participant’s Active Service terminates (i) shall not be paid unless the Participant experiences a "separation from service" within the meaning of Code Section 409A and (ii) if the Participant is a "specified employee" within the meaning of Code Section 409A on the date of the Participant’s separation from service, then the Performance RSUs shall be paid on the first business day of the seventh month following the Participant’s separation from service, or, if earlier, on the date of the Participant’s death, to the extent such delayed payment is required in order to avoid a prohibited distribution under Code Section 409A.
|
7.2
|
This Award and payments made pursuant to this Agreement and the Plan are intended to qualify for an exemption from or comply with Code Section 409A. Notwithstanding any other provision in this Agreement and the Plan, the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Agreement and/or the Plan so that the Performance RSUs granted to the Participant qualify for exemption from or comply with Code Section 409A; provided, however, that the Company makes no representations that the Performance RSUs shall be exempt from or comply with Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Performance RSUs. Nothing in this Agreement or the Plan shall provide a basis for any person to take action against the Company or any Subsidiary or affiliate of the Company based on matters covered by Code Section 409A, including the tax treatment of any amount paid or Award made under this Agreement, and neither the Company nor any of its Subsidiaries or affiliates shall under any circumstances have any liability to any Participant or his or her estate or any other party for any taxes, penalties or interest imposed under Code Section 409A for any amounts paid or payable under this Agreement.
|
7.3
|
If the vesting of the Performance RSUs is accelerated in connection with a Change of Control, the Performance RSUs are considered NQ Deferred Compensation, and the Change of Control does not constitute a "change in control event," within the meaning of the U.S. Treasury Regulations, then the cash equivalent of the Performance RSUs as of the date of the Change in Control shall be paid on the earliest of the applicable Vesting Date, the date of the Participant’s death or the date the Participant’s Active Status terminates due to Disability.
|
8.
|
Responsibility for Taxes. Regardless of any action the Company or, if different, the Participant’s employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, fringe benefit tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains
|
(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.
|
9.
|
Nature of Grant. In accepting the Award, the Participant acknowledges, understands and agrees that:
|
(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 exceptional, 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 and shall not interfere with the ability of the Employer 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 any purpose, including, but not limited to, 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 Performance RSUs and the Shares subject to the Performance RSUs, 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, 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 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)
|
neither the Company, the Employer nor any other Subsidiary or affiliate of the Company shall be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the Performance RSUs or of any amounts due to the Participant
|
10.
|
No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares. The Participant should consult with his or her own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any action related to the Plan.
|
11.
|
Data Privacy.
|
a)
|
Data Collection and Usage. The Company and the Employer collect, process and use certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, email address, date of birth, social insurance, passport or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all performance restricted stock units or any other entitlement to Shares or equivalent benefits awarded, cancelled, exercised, vested, unvested or outstanding in the Participant’s favor ("Data"), for the legitimate purpose of implementing, administering and managing the Plan. The legal basis, where required, for the processing of Data is the Participant’s consent.
|
b)
|
Stock Plan Administration Service Providers. The Company transfers Data to Fidelity Plan Services, LLC and its affiliated companies (collectively, "Fidelity"), an independent service provider based in the United States, which is assisting the Company with the implementation, administration and management of the Plan. The Company may select a different service provider or additional service providers and share Data with such other provider(s) serving in a similar manner. The Participant may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being a condition to the ability to participate in the Plan.
|
c)
|
International Data Transfers. The Company and Fidelity are based in the United States. The Participant’s country or jurisdiction may have different data privacy laws and protections than the United States. For example, the European Commission has issued a limited adequacy finding with respect to the United States that applies only to the extent companies register for the EU-U.S. Privacy Shield program. The Company is registered for this program, but only with respect to non-HR related data which does not encompass Data for purposes of this Agreement. The Company’s legal basis, where required, for the transfer of Data is the Participant’s consent.
|
d)
|
Data Retention. The Company will hold and use Data only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan, or as required to comply with legal or regulatory obligations, including under tax, securities, exchange control and labor laws. This means Data may be retained until after termination of your Active Service.
|
e)
|
Voluntariness and Consequences of Consent Denial or Withdrawal. Participation in the Plan is voluntary and the Participant is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke his or her consent, the Participant’s salary from or employment and career with the Employer will not be affected; the only consequence of refusing or withdrawing the Participant’s consent is that the Company would not be able to grant Performance RSUs or other equity awards to the Participant or administer or maintain such awards.
|
f)
|
Data Subject Rights. The Participant may have a number of rights under data privacy laws in his or her jurisdiction. Depending on where the Participant is based, such rights may include the right to (i) request access or copies of Data the Company processes, (ii) rectification of incorrect Data, (iii) deletion of Data, (iv) restrictions on processing of Data, (v) portability of Data, (vi) lodge complaints with competent authorities in the Participant’s jurisdiction, and/or (vii) receive a list with the names and addresses of any potential recipients of Data. To receive clarification regarding these rights or to exercise these rights, the Participant can contact his or her local human resources representative.
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12.
|
Governing Law/Choice of Venue. The Award and the provisions of this Agreement are governed by, and subject to, the laws of the State of Washington, as provided in the Plan, without regard for its conflict of laws provisions. For purposes of litigating any dispute that arises under this grant or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of Washington, and agree that such litigation shall be conducted exclusively in the courts of King County, or the federal courts of the United States for the 9th Circuit, and no other courts, where this grant is made and/or to be performed.
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13.
|
Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares issuable upon settlement of the Performance RSUs prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission ("SEC") or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable. The Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. Further, the Participant agrees that the Company shall have unilateral authority to amend the Plan and this Agreement without the Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares.
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14.
|
Language. The Participant acknowledges and represents that he or she is proficient in the English language, or has consulted with an advisor who is sufficiently proficient in English, as to allow the Participant to understand the terms of this Agreement and any other documents related to the Plan. If the Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
|
15.
|
Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company.
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16.
|
Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
17.
|
Undertakings. The Participant hereby agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either the Participant or the Performance RSUs pursuant to the provisions of this Agreement.
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18.
|
No Rights as Shareholder. Except as otherwise provided in Section 2, the Participant will not have dividend, voting or any other rights as a shareholder of the Shares with respect to the Performance RSUs. Upon payment of the vested Performance RSUs in Shares, the Participant will obtain full dividend, voting and other rights as a shareholder of the Company.
|
19.
|
Restrictions on Transfer. Notwithstanding anything in the Plan to the contrary, the Performance RSUs granted pursuant to this Award may not be sold, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose), assigned, hypothecated, transferred, disposed of in exchange for consideration, made subject to attachment or similar proceedings, or otherwise disposed of under any circumstances, except that this Award may be transferred (i) by will or by laws of descent and distribution applicable to a deceased Participant or (ii) pursuant to a domestic relations order.
|
20.
|
Appendix A. Notwithstanding any provisions in this Global Key Employee Restricted Stock Unit Grant Agreement, the Award of Performance RSUs shall be subject to any special terms and conditions set forth in Appendix A for the Participant’s country. Moreover, if the Participant relocates to one of the countries included in Appendix A, the special terms and conditions for such country will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Appendix A constitutes part of this Global Key Employee Restricted Stock Unit Grant Agreement.
|
21.
|
Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the Performance RSUs and on any Shares acquired under the Plan, to the extent that the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings (as provided in Section 17 above) that may be necessary to accomplish the foregoing.
|
22.
|
Waiver. If the Participant breaches or otherwise does not comply with any provision of this Agreement, but the Company does not act upon this breach or non-compliance and continues to comply with its obligations under this Agreement, this shall not mean that the Company waives any other provision of this Agreement or will otherwise permit any further breach of or non-compliance with any provision of this Agreement.
|
23.
|
Insider Trading/Market Abuse Laws. Depending on the Participant’s country or the country in which Shares are listed, the Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, including the United States and, if different, the Participant’s country, the Participant’s broker’s country and/or the country where the Shares are listed, which may affect the Participant’s ability directly or indirectly, for the Participant him- or herself or for a third party, to accept, acquire, sell or attempt to sell, or otherwise dispose of Shares, rights to Shares (e.g., Performance RSUs) or rights linked to the value of Shares during such times as the Participant is considered to have "inside information" regarding the Company (as defined by the laws or regulations in the applicable jurisdiction). Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Participant placed before possessing inside information. Furthermore, the Participant may be prohibited from (i) disclosing insider information to any third party (other than on a "need to know" basis) and (ii) "tipping" third parties or causing them otherwise to buy or sell securities, including third parties who are fellow employees. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable insider trading policy of the Company. The Participant acknowledges that it is the Participant’s responsibility to comply with any applicable restrictions, and the Participant should consult with the Participant’s own personal legal and financial advisors on this matter before taking any action related to the Plan.
|
24.
|
Foreign Asset/Account Reporting; Exchange Controls. The Participant’s country may have certain foreign asset and/or account reporting requirements and/or exchange controls which may affect the Participant’s ability to acquire or hold Shares under the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of Shares) in a brokerage or bank account outside the Participant’s country. The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant’s country. The Participant also may be required to repatriate sale proceeds or other funds received as a result of the Participant’s participation in the Plan to the Participant’s country through a designated bank or broker and/or within a certain time after receipt. The Participant acknowledges that it is his or her responsibility to comply with such regulations, and the Participant should consult his or her personal legal advisor for any details.
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Entity Name
|
|
Organized Under the Laws of:
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AmRest Coffee s.r.o.
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|
Czech Republic
|
AmRest Coffee Sp. z o. o.
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|
Poland
|
AmRest Kavezo Kft.
|
|
Hungary
|
Bay Bread LLC
|
|
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 Limited
|
|
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
|
Princi Global Limited
|
|
United Kingdom
|
Princi London Limited
|
|
United Kingdom
|
Princi Properties Limited
|
|
United Kingdom
|
Princi UK Limited
|
|
United Kingdom
|
Qingdao American Starbucks Coffee Company Limited
|
|
China
|
SBI Nevada, Inc.
|
|
Nevada
|
SCI Europe I, LLC
|
|
Washington
|
SCI Europe II, LLC
|
|
Washington
|
SCI Investment, Inc.
|
|
Washington
|
Seastar Colombia Supply Company S.A.S.
|
|
Colombia
|
Seattle Coffee Company
|
|
Georgia
|
Seattle’s Best Coffee LLC
|
|
Washington
|
Shanghai Starbucks Coffee Enterprise Co., Ltd.
|
|
China
|
Shaya Coffee Limited
|
|
Cyprus
|
Siren Retail Corporation
|
|
Washington
|
SR Holdings Corporation
|
|
Washington
|
SR2 Holdings Corporation
|
|
Washington
|
Starbucks (China) Company Limited
|
|
China
|
Starbucks (Shanghai) Coffee Company Limited
|
|
China
|
Starbucks (Shanghai) Supply Chain Co., Ltd.
|
|
China
|
Starbucks (Shanghai) Trade Company Limited
|
|
China
|
Starbucks AINI Coffee (Yunnan) Company Limited
|
|
China
|
Starbucks Asia Pacific Investment Holding II Limited
|
|
Hong Kong
|
Starbucks Asia Pacific Investment Holding III Limited
|
|
Hong Kong
|
Starbucks Asia Pacific Investment Holding Limited
|
|
Hong Kong
|
Starbucks Capital Asset Leasing Company, LLC
|
|
Delaware
|
Starbucks Card Europe Limited
|
|
United Kingdom
|
Starbucks Coffee (Cayman) Holdings Ltd.
|
|
Cayman Islands
|
Starbucks Coffee (Dalian) Company Limited
|
|
China
|
Starbucks Coffee (Liaoning) Company Limited
|
|
China
|
Starbucks Coffee (Shenzhen) Company Limited
|
|
China
|
Starbucks Coffee Agronomy Company S.R.L.
|
|
Costa Rica
|
Starbucks Coffee Asia Pacific Limited
|
|
Hong Kong
|
Starbucks Coffee Austria GmbH
|
|
Austria
|
Starbucks Coffee Canada, Inc.
|
|
Canada
|
Starbucks Coffee Company (Australia) Pty Ltd
|
|
Australia
|
Starbucks Coffee Company (UK) Limited
|
|
United Kingdom
|
Starbucks Coffee Development (Yunnan) Company Limited
|
|
China
|
Starbucks Coffee EMEA B.V.
|
|
Netherlands
|
Starbucks Coffee Holdings (UK) Limited
|
|
United Kingdom
|
Starbucks Coffee International, Inc.
|
|
Washington
|
Starbucks Coffee Japan, Ltd.
|
|
Japan
|
Starbucks Coffee Korea Co., Ltd.
|
|
South Korea
|
Starbucks Coffee Switzerland GmbH
|
|
Switzerland
|
Starbucks Coffee Trading Company Sarl
|
|
Switzerland
|
Starbucks EMEA Holdings Ltd
|
|
United Kingdom
|
Starbucks EMEA Investment Ltd
|
|
United Kingdom
|
Starbucks EMEA Ltd
|
|
United Kingdom
|
Starbucks Farmer Support Center Rwanda Ltd
|
|
Rwanda
|
Starbucks Farmer Support Center Tanzania Limited
|
|
Tanzania
|
Starbucks Holding Company
|
|
Washington
|
Starbucks Holding Company Pte. Ltd.
|
|
Singapore
|
Starbucks International (Holdings) Ltd
|
|
United Kingdom
|
Starbucks Italy S.r.l.
|
|
Italy
|
Starbucks Manufacturing Corporation
|
|
Washington
|
Starbucks Manufacturing EMEA B.V.
|
|
Netherlands
|
Starbucks New Venture Company
|
|
Washington
|
Starbucks Singapore Investment Pte. Ltd.
|
|
Singapore
|
Starbucks Switzerland Austria Holdings B.V.
|
|
Netherlands
|
Starbucks Trading, G.K.
|
|
Japan
|
Tata Starbucks Private Limited
|
|
India
|
Teavana Puerto Rico, LLC
|
|
Delaware
|
The New French Bakery, Inc.
|
|
California
|
Torrefazione Italia LLC
|
|
Washington
|
Torz and Macatonia Limited
|
|
United Kingdom
|
Xi’an Starbucks Coffee Company Limited
|
|
China
|
1.
|
I have reviewed this Annual Report on Form 10-K for the fiscal year ended September 29, 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 Annual Report on Form 10-K for the fiscal year ended September 29, 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
|