•

lack of customer acceptance of new products (including due to price increases necessary to cover the costs of new products or higher input costs), brands (such as the global expansion of the Teavana brand in our Starbucks^®retail stores and other channels) and platforms (such as features of our mobile technology, changes in our loyalty rewards programs and our delivery services initiatives), or customers reducing their demand for our current offerings as new products are introduced;

the degree to which we enter into, maintain, develop and are able to negotiate appropriate terms and conditions of, and enforce, commercial and other agreements and the performance of our business partners under such agreements;

not successfully consummating and implementing favorable strategic transactions or integrating acquired ~~businesses;~~businesses, including our East China business;

the effects of the Tax Cuts and Jobs Act and related guidance and regulations that may be promulgated; 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.

Our Channel Development business is heavily reliant on Nestlé, which acquired the right to sell and distribute our packaged goods and foodservice products to retailers and operators, with few exceptions. If Nestlé fails to perform its distribution and marketing commitments under our agreements and/or fails to support, protect and grow our brand in Channel Development, our Channel Development business could be adversely impacted for a period of time, present long-term challenges to our brand, limit our ability to grow our Channel Development business and have a material adverse impact on our business and financial results. Additionally, our Channel Development business is also in part dependent on the level of support our retail business partners provide our products, and in some markets there are only a few retailers. If our retail business partners do not provide sufficient levels of support for our products, which is at their discretion, it could limit our ability to grow our Channel Development business.

Also, a relatively small number of licensee partners own a large number of licensed stores. If such licensee partners are not able to access sufficient funds or financing, or are otherwise unable to successfully operate and grow their businesses, including their licensed stores, it could ~~adversely affect~~have a material adverse effect on our results in the markets in which they operate their licensed stores.

Effectively managing growth can be challenging, particularly as we continue to expand into new channels outside the retail store model, ~~increase~~implement our ~~focus on~~arrangement with Nestlé for most of our global Channel Development business and grow our Teavana ~~businesses,~~brand in our Starbucks^®retail stores and other channels, as well as expand into new markets internationally where we must balance the need for flexibility and a degree of autonomy for local management against the need for consistency with our goals, philosophy and standards. Growth can make it increasingly difficult to ensure a consistent supply of high-quality raw materials, to locate and hire sufficient numbers of key employees, to maintain an effective system of internal controls for a globally dispersed enterprise and to train employees worldwide to deliver a consistently ~~high quality~~high-quality product and customer

experience. Furthermore, if we are not successful in implementing these strategic initiatives, such as large acquisitions and integrations, we may be required to evaluate whether certain assets, including goodwill and other intangibles, have become impaired. In the event we record an impairment charge, it could have a material impact on our financial results.

We face intense competition in each of our channels and markets, which could lead to reduced profitability.

The specialty coffee market is intensely competitive, including with respect to product quality, innovation, service, convenience, such as delivery service and mobile ordering, and price, and we face significant and increasing competition in all these areas in each of our channels and markets. Accordingly, we do not have leadership positions in all channels and markets. In the U.S., the ongoing focus by large competitors in the quick-service restaurant sector on selling high-quality specialty coffee beverages could lead to decreases in customer traffic to Starbucks^® stores and/or average value per transaction adversely affecting our sales and results of operations. Similarly, continued competition from well-established competitors, or competition from large new entrants or well-funded smaller companies in our domestic and international markets could hinder growth and adversely affect our sales and results of operations in those markets. Many small competitors also continue to open coffee specialty stores in many of our markets across the world, which in the aggregate may also lead to significant decreases of customer traffic to our stores in those markets. Increased competition globally in ~~the U.S.~~ packaged coffee and tea and single-serve and ready-to-drink coffee beverage markets, including from new and large entrants to this market could adversely affect the profitability of the Channel Development segment. ~~Additionally,~~Furthermore, declines in general consumer demand for specialty coffee products for any reason, including due to consumer preference for other products or flattening demand for our products, could have a negative effect on our business.

We are highly dependent on the financial performance of our Americas operating segment.

Our financial performance is highly dependent on our Americas operating segment, as it comprised approximately ~~69%~~68% of consolidated total net revenues in fiscal ~~2016.~~2018. If the Americas operating segment revenue trends slow or decline, especially in our U.S. and Canada markets, our other segments may be unable to make up any significant shortfall and our business and financial results could be adversely affected. And because the Americas segment is relatively mature and produces the large majority of our operating cash flows, such a slowdown or decline could result in reduced cash flows for funding the expansion of our international business and other initiatives and for returning cash to shareholders.

We are increasingly dependent on the success of certain international markets in order to achieve our growth targets.

Our future growth increasingly depends on the growth and sustained profitability of certain international markets. Some or all of our international market business units ~~("MBUs"~~(“MBUs”), which we generally define by the countries in which they operate, may not be successful in their operations or in achieving expected growth, which ultimately requires achieving consistent, stable net revenues and earnings. The performance of these international operations may be adversely affected by economic downturns in one or more of the countries in which our large MBUs operate. ~~In particular, both our China and Japan MBUs contribute meaningfully to both consolidated and CAP net revenues and earnings.~~ A decline in performance of one or more of our significant international MBUs could have a material adverse impact on our consolidated results.

The CAP segment is now one of our two significant profit centers driving our global returns, along with our Americas segment. In particular, our China MBU contributes meaningfully to both consolidated and CAP net revenues and earnings. China is currently our fastest growing market and second largest market overall. With our recent acquisition of the East China business, the China market is now 100% company owned and, along with the U.S. market. Due to the significance of our China market for our profit and growth, we are exposed to risks in China, including the risks mentioned elsewhere below and the following:

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.

Additionally, some factors that will be critical to the success of our international operations overall are different than those affecting our U.S. stores and licensees. Tastes naturally vary by region, and consumers in some MBUs may not embrace our products to the same extent as consumers in the U.S. or other international markets. Occupancy costs and store operating expenses can be higher internationally than in the U.S. due to higher rents for prime store locations or costs of compliance with

country-specific regulatory requirements. Because many of our international operations are in an early phase of development, operating expenses as a percentage of related revenues are often higher compared to more developed operations, such as in the U.S. Additionally, our international joint venture partners or licensees may face capital constraints or other factors that may limit the speed at which they are able to expand and develop in a certain market.

Our international operations are also subject to additional inherent risks of conducting business abroad, such as:

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 (refer 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;

delays in store openings for reasons beyond our control, competition with locally relevant competitors or a lack of desirable real estate locations available for lease at reasonable rates, any of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revenues, operating income and earnings per share; and

disruption in energy supplies affecting our markets.

Moreover, many of the foregoing risks are particularly acute in developing countries, which are important to our long-term growth prospects.

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.

We purchase, roast and sell high-quality whole bean arabica coffee beans and related coffee products. The price of coffee is subject to significant volatility and has and may again increase significantly due to one or more of the factors described below. The high-quality arabica coffee of the quality we seek tends to trade on a negotiated basis at a premium above the ~~"C"~~“C” price. This premium depends upon the supply and demand at the time of purchase and the amount of the premium can vary significantly. Increases in the ~~"C"~~“C” coffee commodity price do increase the price of high-quality arabica coffee and also impact our ability to enter into fixed-price purchase commitments. We frequently enter into supply contracts whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date, and therefore price, at which the base ~~"C"~~“C” coffee commodity price component will be fixed has not yet been established. These are known as price-to-be-fixed contracts. The supply and price of coffee we purchase can also be affected by multiple factors in the producing countries, ~~including~~

such as weather (including the potential effects of climate change), natural disasters, crop disease, general increase in farm inputs and costs of production, inventory levels and political and economic conditions, as well as the actions of certain organizations and associations that have historically attempted to influence prices of green coffee through agreements establishing export quotas or by restricting coffee supplies. Speculative trading in coffee commodities can also influence coffee prices. Because of the significance of coffee beans to our operations, combined with our ability to only partially mitigate future price risk through purchasing practices and hedging activities, increases in the cost of high-quality arabica coffee beans could have an a material

adverse impact on our profitability. In addition, if we are not able to purchase sufficient quantities of green coffee due to any of the above factors or to a worldwide or regional shortage, we may not be able to fulfill the demand for our coffee, which could have ana material adverse impact on our profitability.

We also purchase significant amounts of dairy products, particularly fluid milk, to support the needs of our company-operated retail stores. Additionally, and although less significant to our operations than coffee or dairy, other commodities, including but not limited to tea and those related to food and beverage inputs, such as cocoa, produce, baking ingredients, meats, eggs and energy, as well as the processing of these inputs, are important to our operations. Increases in the cost of dairy products and other commodities, or lack of availability, whether due to supply shortages, delays or interruptions in processing, or otherwise, especially in international markets, could have ana material adverse impact on our profitability.

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.

Our operating results have been in the past and will continue to be subject to a number of factors, many of which are largely outside our control. Any one or more of the factors listed below or described elsewhere in this risk factors section could ~~adversely~~have a material adverse impact our business, financial condition and/or results of operations:

increases in real estate costs in certain domestic and international markets;

adverse outcomes of litigation;

severe weather or other natural or man-made disasters affecting a large market or several closely located markets that may temporarily but significantly affect our retail business in such markets; and

especially in our larger or fast growing markets, labor discord or disruption, geopolitical events, war, terrorism (including incidents targeting us), political instability, boycotts, increasing anti-American sentiment in certain markets, social unrest, and natural disasters, including health pandemics that lead to avoidance of public places or restrictions on public gatherings such as in our stores.

Interruption of our supply chain could affect our ability to produce or deliver our products and could negatively impact our business and profitability.

Any material interruption in our supply chain, such as material interruption of roasted coffee supply due to the casualty loss of any of our roasting plants, interruptions in service by our third party logistic service providers or common carriers that ship goods within our distribution channels, trade restrictions, such as increased tariffs or quotas, embargoes or customs restrictions, or natural disasters or political disputes and military conflicts that cause a material disruption in our supply chain could ~~negatively~~have a negative material impact on our business and our profitability.

Additionally, our food, beverage and other products are sourced from a wide variety of domestic and international business partners in our supply chain operations, and in certain cases are produced or sourced by our licensees directly. We rely on these suppliers ~~and vendors~~ to provide high quality products and to comply with applicable laws. Our ability to find qualified suppliers ~~and vendors~~ who meet our standards and supply products in a timely and efficient manner is a significant challenge, especially with respect to goods sourced from outside the U.S., especially countries or regions with diminished infrastructure, developing or failing economies or experiencing political instability or social ~~unrest.~~unrest, and as we increase our fresh and prepared food offerings. For certain products, we may rely on one or very few ~~suppliers or vendors.~~suppliers. A ~~vendor's or~~ supplier's failure to meet our standards, provide products in a timely and efficient manner, or comply with applicable laws is beyond our control. These issues, especially for those products for which we rely on one or few suppliers, ~~or vendors,~~ could ~~negatively~~have a material negative impact on 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.

Failure to meet market expectations going forward, particularly with respect to operating margins, earnings per share, comparable store sales, operating cash flows, shareholder returns and net revenues, will likely result in a decline and/or increased volatility in the market price of our stock. In addition, price and volume fluctuations in the stock market as a whole may affect the market price of our stock in ways that may be unrelated to our financial performance.

The loss of key personnel or difficulties recruiting and retaining qualified personnel could adversely impact our business and financial results.

Much of our future success depends on the continued availability and service of senior management personnel. The loss of any of our executive officers or other key senior management personnel could harm our business. We must continue to recruit, retain and motivate management and other employees sufficiently, both to maintain our current business and to execute our

strategic initiatives, some of which involve ongoing expansion in business channels outside of our traditional company-operated store model. Our success also depends substantially on the contributions and abilities of our retail store employees whom we rely on to give customers a superior in-store experience and elevate our brand. Accordingly, our performance

depends on our ability to recruit and retain high quality employees to work in and manage our stores, both domestically and internationally. Our ability to attract and retain both corporate and retail personnel is also acutely impacted in certain international and domestic markets where the competition for a relatively small number of qualified employees is intense or in markets where large high-tech companies are able to offer more competitive salaries and benefits, as well as where there is a strong economy with many available jobs and intense competition for the available workforce. Additionally, there is intense competition for qualified technology systems developers necessary to develop and implement new technologies for our growth initiatives, including increasing our digital relationships with customers. If we are unable to recruit, retain and motivate employees sufficiently to maintain our current business and support our projected growth, our business and financial performance may be adversely affected.

Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and financial results.

Our policies and procedures are designed to comply with all applicable laws, accounting and reporting requirements, tax rules and other regulations and requirements, including those imposed by the SEC, ~~NASDAQ,~~Nasdaq, and foreign countries, as well as applicable trade, labor, healthcare, privacy (including the European Union’s GDPR, discussed in more detail in this risk factors section), food and beverage, sanitation, safety, environmental, labeling, anti-bribery and corruption and merchandise laws. The complexity of the regulatory environment in which we operate and the related cost of compliance are both increasing due to additional or changing legal and regulatory requirements, our ongoing expansion into new markets and new channels, and the fact that foreign laws occasionally conflict with domestic laws. In addition to potential damage to our reputation and brand, failure by us or our business partners to comply with the various applicable laws and regulations, as well as changes in laws and regulations or the manner in which they are interpreted or applied, may result in litigation, civil and criminal liability, damages, fines and penalties, increased cost of regulatory compliance and restatements of our financial ~~statements.~~statements and have an adverse impact on our business and financial results.


~~Item 1B.~~	~~Unresolved Staff Comments~~

Item 1B. Unresolved Staff Comments

None.


Item 2.	Properties

The significant properties used by Starbucks in connection with its roasting, manufacturing, warehousing, distribution and corporate administrative operations, serving all segments, are as follows:



Location	Approximate Size in Square Feet	Purpose
Rancho Cucamonga, CA	265,000	Manufacturing
~~Stratford, CT~~Washington, DC	~~196,000~~130,000	Warehouse and distribution
Augusta, GA	131,000	Manufacturing
Minden, NV (Carson Valley)	~~360,000~~1,080,000	Roasting and distribution
York, PA	~~2,098,000~~1,957,000	Roasting, distribution and warehouse
Gaston, SC (Sandy Run)	117,000	Roasting and distribution
Lebanon, TN	680,000	Warehouse and distribution
Stratford, CT	196,000	Warehouse and distribution
Auburn, WA	491,000	Warehouse and distribution
Kent, WA	510,000	Roasting and distribution
Seattle, WA	~~1,135,000~~1,283,000	Corporate administrative
Shanghai, China	~~116,000~~211,000	Corporate administrative
Amsterdam, Netherlands	97,000	Roasting and distribution
Samutprakarn, Thailand	81,000	Warehouse and distribution

We own most of our roasting facilities and lease the majority of our warehousing and distribution locations. As of ~~October 2, 2016~~,September 30, 2018, Starbucks had ~~12,711~~15,341 company-operated stores, almost all of which are leased. We also lease space in various locations worldwide for regional, district and other administrative offices, training facilities and storage. In addition to the locations listed above, we hold inventory at various locations managed by third-party warehouses.


Item 3.	Legal Proceedings

See Note 15, Commitments and Contingencies, to the consolidated financial statements included in Item 8 of Part II of this 10-K for information regarding certain legal proceedings in which we are involved.


~~Item 4.~~	~~Mine Safety Disclosures~~

Item 4.Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for the Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

SHAREHOLDER INFORMATION

MARKET INFORMATION AND DIVIDEND POLICY

Starbucks common stock is traded on NASDAQ, under the symbol ~~"SBUX."~~

The following table shows the quarterly high and low sale prices per share of Starbucks common stock as reported by NASDAQ for each quarter during the last two fiscal years and the quarterly cash dividend declared per share of our common stock during the periods indicated, as adjusted to give effect to the two-for-one stock split discussed in ~~Note 1, Summary of Significant Accounting Policies, included in Item 8 of Part II of this 10-K:~~

High Low Cash Dividends
Declared
Fiscal 2016:
Fourth Quarter $ 58.84
$ 52.90
$ 0.25
Third Quarter 61.64
54.01
0.20
Second Quarter 61.79
52.63
0.20
First Quarter 64.00
54.81
0.20
Fiscal 2015:
Fourth Quarter $ 59.32
$ 42.05
$ 0.20
Third Quarter 54.75
46.28
0.16
Second Quarter 49.60
39.28
0.16
First Quarter 42.10
35.39
0.16
“SBUX.”

As of November ~~11, 2016,~~9, 2018, we had approximately 18,100 shareholders of record. This does not include persons whose stock is in nominee or ~~"street name"~~“street name” accounts through brokers.

Future decisions to pay cash dividends continue to be at the discretion of the Board of Directors and will be dependent on our operating performance, financial condition, capital expenditure requirements and other factors that the Board of Directors considers relevant.

ISSUER PURCHASES OF EQUITY SECURITIES

The following table provides information regarding repurchases of our common stock during the quarter ended ~~October 2, 2016:~~September 30, 2018:

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⁾

June 27, 2016 — July 24, 2016 —
$ —
—
125,119,308
July 25, 2016 — August 21, 2016 4,660,655
55.92
4,660,655
120,458,653
August 22, 2016 — October 2, 2016 2,609,092
55.43
2,609,092
117,849,561
Total 7,269,747
$ 55.74
7,269,747



	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 2, 2018 - July 29, 2018	19,506,300	$	50.54	19,506,300	87,808,124
July 30, 2018 - August 26, 2018	15,000,000	52.70		15,000,000	72,808,124
August 27, 2018 - September 30, 2018	24,000,000	55.10		24,000,000	48,808,124
Total	58,506,300	$	52.96	58,506,300


⁽¹⁾	Monthly information is presented by reference to our fiscal months during the fourth quarter of fiscal ~~2016.~~2018.


⁽²⁾	Share repurchases are conducted under our ongoing share repurchase program announced in September 2001, which has no expiration date.

⁽³⁾

This column includes the total remaining number of shares available for repurchase under the authorization announced on April 26, 2018 as part of our ongoing share repurchase program. These amounts do not include the additional 120 million shares authorized for repurchase ~~under the Company's ongoing share repurchase program and includes the additional~~ ~~100 million~~ ~~shares authorized for repurchase as~~ announced on ~~April 21, 2016~~.November 1, 2018. Shares under our ongoing share repurchase program may be repurchased in open market transactions, including

pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, or through privately negotiated transactions. The timing, manner, price and amount of repurchases will be determined at the Company's discretion, and the share repurchase program may be suspended, terminated or modified at any time for any reason.

Performance Comparison Graph

The following graph depicts the total return to shareholders from ~~October 2, 2011~~September 29, 2013 through ~~October 2, 2016~~,September 30, 2018, relative to the performance of the Standard & Poor’s 500 Index, the NASDAQ Composite Index and the Standard & Poor’s 500 Consumer Discretionary Sector, a peer group that includes Starbucks. All indices shown in the graph have been reset to a base of 100 as of ~~October 2, 2011~~,September 29, 2013, and assume an investment of $100 on that date and the reinvestment of dividends paid since that date. The stock price performance shown in the graph is not necessarily indicative of future price performance.


	Oct 2, 2011		Sep 30, 2012		Sep 29, 2013		Sep 28, 2014		Sep 27, 2015		Oct 2, 2016		Sep 29, 2013		Sep 28, 2014		Sep 27, 2015		Oct 2, 2016		Oct 1, 2017		Sep 30, 2018
Starbucks Corporation	$	100.00	$	137.95	$	213.36	$	210.33	$	328.99	$	311.36	$	100.00	$	98.58	$	154.19	$	145.93	$	147.36	$	159.57
S&P 500	100.00		130.20		155.39		186.05		184.91		213.44		100.00		119.73		119.00		137.36		162.92		192.10
NASDAQ Composite	100.00		131.89		163.47		195.96		202.60		234.66		100.00		121.64		127.37		148.79		183.54		230.21
S&P Consumer Discretionary	100.00		136.64		180.14		201.34		227.88		249.84		100.00		111.77		126.50		138.69		158.83		210.51


Item 6.	Selected Financial Data

The following selected financial data is derived from the consolidated financial statements. ~~All per-share data has been retroactively adjusted to give effect to the two-for-one stock split discussed in~~ ~~Note 1, Summary of Significant Accounting Policies, included in Item 8 of Part II of this 10-K.~~ The data below should be read in conjunction with ~~"Management’s~~“Management’s Discussion and Analysis of Financial Condition and Results of Operations,~~" "Risk~~” “Risk Factors,"” and the consolidated financial statements and notes.

Financial Information (in millions, except per share data):

As of and for the Fiscal Year Ended ⁽¹⁾
Oct 2,
2016
(53 Wks) Sep 27,
2015
(52 Wks) Sep 28,
2014
(52 Wks) Sep 29,
2013
(52 Wks) Sep 30,
2012
(52 Wks)

Results of Operations
Net revenues:
Company-operated stores $ 16,844.1
$ 15,197.3
$ 12,977.9
$ 11,793.2
$ 10,534.5
Licensed stores 2,154.2
1,861.9
1,588.6
1,360.5
1,210.3
CPG, foodservice and other 2,317.6
2,103.5
1,881.3
1,713.1
1,532.0
Total net revenues $ 21,315.9
$ 19,162.7
$ 16,447.8
$ 14,866.8
$ 13,276.8

Operating income/(loss)⁽²⁾
$ 4,171.9
$ 3,601.0
$ 3,081.1
$ (325.4 ) $ 1,997.4

Net earnings including noncontrolling interests⁽²⁾
2,818.9
2,759.3
2,067.7
8.8
1,384.7
Net earnings/(loss) attributable to noncontrolling interests 1.2
1.9
(0.4 ) 0.5
0.9

Net earnings attributable to Starbucks⁽²⁾
2,817.7
2,757.4
2,068.1
8.3
1,383.8

EPS — diluted⁽²⁾
1.90
1.82
1.35
0.01
0.90
Cash dividends declared per share 0.850
0.680
0.550
0.445
0.360
Net cash provided by operating activities 4,575.1
3,749.1
607.8
2,908.3
1,750.3
Capital expenditures (additions to property, plant and equipment) 1,440.3
1,303.7
1,160.9
1,151.2
856.2
Balance Sheet

Total assets⁽³⁾
$ 14,329.5
$ 12,416.3
$ 10,752.0
$ 11,516.0
$ 8,217.6
Long-term debt (including current portion) 3,602.2
2,347.5
2,048.3
1,299.4
549.6
Shareholders’ equity 5,884.0
5,818.0
5,272.0
4,480.2
5,109.0



As of and for the Fiscal Year Ended ⁽¹⁾	Sept 30, 2018 (52 Wks)			Oct 1, 2017 (52 Wks)		Oct 2, 2016 (53 Wks)		Sep 27, 2015 (52 Wks)		Sep 28, 2014 (52 Wks)
As of and for the Fiscal Year Ended ⁽¹⁾	Sept 30, 2018 (52 Wks)			Oct 1, 2017 (52 Wks)		Oct 2, 2016 (53 Wks)		Sep 27, 2015 (52 Wks)		Sep 28, 2014 (52 Wks)
Results of Operations
Net revenues:
Company-operated stores	$	19,690.3		$	17,650.7	$	16,844.1	$	15,197.3	$	12,977.9
Licensed stores	2,652.2			2,355.0		2,154.2		1,861.9		1,588.6
Other	2,377.0			2,381.1		2,317.6		2,103.5		1,881.3
Total net revenues	$	24,719.5		$	22,386.8	$	21,315.9	$	19,162.7	$	16,447.8
Operating income/(loss)	$	3,883.3		$	4,134.7	$	4,171.9	$	3,601.0	$	3,081.1
Net earnings including noncontrolling interests⁽²⁾	4,518.0			2,884.9		2,818.9		2,759.3		2,067.7
Net earnings/(loss) attributable to noncontrolling interests	(0.3		)	0.2		1.2		1.9		(0.4		)
Net earnings attributable to Starbucks⁽²⁾	4,518.3			2,884.7		2,817.7		2,757.4		2,068.1
EPS — diluted⁽²⁾	3.24			1.97		1.90		1.82		1.35
Cash dividends declared per share	1.32			1.05		0.85		0.68		0.55
Net cash provided by operating activities⁽³⁾	11,937.8			4,251.8		4,697.9		3,881.5		722.2
Capital expenditures (additions to property, plant and equipment)	1,976.4			1,519.4		1,440.3		1,303.7		1,160.9
Balance Sheet
Total assets	$	24,156.4		$	14,365.6	$	14,312.5	$	12,404.1	$	10,745.0
Long-term debt (including current portion)	9,440.1			3,932.6		3,585.2		2,335.3		2,041.3
Shareholders’ equity	1,169.5			5,450.1		5,884.0		5,818.0		5,272.0


⁽¹⁾	Our fiscal year ends on the Sunday closest to September 30. The fiscal year ended on October 2, 2016 included 53 weeks, with the 53^rd week falling in our fourth fiscal quarter.

⁽²⁾

Fiscal ~~2013~~2018 results include a ~~pretax charge~~gain not subject to income tax of ~~$2,784.1 million~~$1.4 billion resulting from the ~~conclusion~~acquisition of our ~~arbitration with Kraft Foods Global, Inc.~~East China joint venture. The impact of ~~this charge~~the gain to ~~net earnings attributable to Starbucks and~~our diluted EPS ~~net of the related tax benefit,~~ was ~~$1,713.1 million and $1.12 per share, respectively.~~$0.99.


⁽³⁾	~~Total assets~~Net cash provided by operating activities for fiscal ~~2012~~2014 through fiscal ~~2015~~2017 have been adjusted for the adoption of new accounting guidance related to ~~the reclassification of deferred income taxes~~excess tax benefits as discussed in Note 1, Summary of Significant Accounting Policies.

Comparable Store Sales:

Fiscal Year Ended Oct 2,
2016 Sep 27,
2015 Sep 28,
2014 Sep 29,
2013 Sep 30,
2012

Percentage change in comparable store sales⁽¹⁾

Americas
Sales growth 6 % 7 % 6 % 7 % 8 %
Change in transactions 1 % 3 % 2 % 5 % 6 %
Change in ticket 5 % 4 % 3 % 2 % 2 %

China/Asia Pacific⁽²⁾

Sales growth 3 % 9 % 7 % 9 % 15 %
Change in transactions 1 % 8 % 6 % 7 % 11 %
Change in ticket 2 % 1 % — % 2 % 3 %
EMEA
Sales growth — % 4 % 5 % — % — %
Change in transactions 1 % 2 % 3 % 2 % — %
Change in ticket — % 1 % 2 % (2 )% — %
Consolidated
Sales growth 5 % 7 % 6 % 7 % 7 %
Change in transactions 1 % 3 % 3 % 5 % 6 %
Change in ticket 4 % 4 % 3 % 2 % 1 %



Fiscal Year Ended	Sep 30, 2018		Oct 1, 2017		Oct 2, 2016		Sep 27, 2015		Sep 28, 2014
Fiscal Year Ended	Sep 30, 2018		Oct 1, 2017		Oct 2, 2016		Sep 27, 2015		Sep 28, 2014
Percentage change in comparable store sales⁽¹⁾
Americas
Sales growth	2	%	3	%	6	%	7	%	6	%
Change in transactions	(1	)%	—	%	1	%	3	%	2	%
Change in ticket	3	%	4	%	5	%	4	%	3	%
China/Asia Pacific⁽²⁾
Sales growth	1	%	3	%	3	%	9	%	7	%
Change in transactions	(1	)%	1	%	1	%	8	%	6	%
Change in ticket	2	%	1	%	2	%	1	%	—	%
EMEA⁽³⁾
Sales growth	—	%	1	%	—	%	4	%	5	%
Change in transactions	(3	)%	(1	)%	1	%	2	%	3	%
Change in ticket	3	%	1	%	—	%	1	%	2	%
Consolidated
Sales growth	2	%	3	%	5	%	7	%	6	%
Change in transactions	(1	)%	—	%	1	%	3	%	3	%
Change in ticket	3	%	3	%	4	%	4	%	3	%


⁽¹⁾	Includes only Starbucks^® company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates. For fiscal year 2016, comparable store sales percentages were calculated excluding the 53^rd week.


⁽²⁾	Beginning in December of fiscal 2016, comparable store sales include the results of the 1,009 company-operated stores acquired as part of the ~~acquistion~~acquisition of Starbucks Japan in the first quarter of fiscal 2015.


⁽³⁾	Company-operated stores represent 15% of the EMEA segment store portfolio as of September 30, 2018.

Store Count Data:

As of and for the Fiscal Year Ended Oct 2,
2016
(53 Wks) Sep 27,
2015
(52 Wks) Sep 28,
2014
(52 Wks) Sep 29,
2013
(52 Wks) Sep 30,
2012
(52 Wks)

Net stores opened/(closed) and transferred during the year:

Americas⁽¹⁾

Company-operated stores 348
276
317
276
228
Licensed stores 456
336
381
404
280

China/Asia Pacific⁽²⁾

Company-operated stores 359
1,320
250
239
152
Licensed stores 622
(482 ) 492
349
296

EMEA⁽³⁾

Company-operated stores (214 ) (80 ) (9 ) (29 ) 10
Licensed stores 494
302
180
129
101

All Other Segments⁽⁴⁾

Company-operated stores (17 ) 6
12
343
—
Licensed stores (6 ) (1 ) (24 ) (10 ) (4 )
Total 2,042
1,677
1,599
1,701
1,063
Stores open at year end:

Americas⁽¹⁾

Company-operated stores 9,019
8,671
8,395
8,078
7,802
Licensed stores 6,588
6,132
5,796
5,415
5,011

China/Asia Pacific⁽²⁾

Company-operated stores 2,811
2,452
1,132
882
643
Licensed stores 3,632
3,010
3,492
3,000
2,651

EMEA⁽³⁾

Company-operated stores 523
737
817
826
855
Licensed stores 2,119
1,625
1,323
1,143
1,014

All Other Segments⁽⁴⁾

Company-operated stores 358
375
369
357
14
Licensed stores 35
41
42
66
76
Total 25,085
23,043
21,366
19,767
18,066



As of and for the Fiscal Year Ended	Sept 30, 2018 (52 Wks)		Oct 1, 2017 (52 Wks)		Oct 2, 2016 (53 Wks)		Sep 27, 2015 (52 Wks)		Sep 28, 2014 (52 Wks)
As of and for the Fiscal Year Ended	Sept 30, 2018 (52 Wks)		Oct 1, 2017 (52 Wks)		Oct 2, 2016 (53 Wks)		Sep 27, 2015 (52 Wks)		Sep 28, 2014 (52 Wks)
Net stores opened/(closed) and transferred during the year:
Americas⁽¹⁾
Company-operated stores	271		394		348		276		317
Licensed stores	624		558		456		336		381
China/Asia Pacific⁽²⁾
Company-operated stores	2,089		259		359		1,320		250
Licensed stores	(1,038	)	777		622		(482	)	492
EMEA⁽³⁾
Company-operated stores	(12	)	(21	)	(214	)	(80	)	(9	)
Licensed stores	358		353		494		302		180
Corporate and Other⁽⁴⁾
Company-operated stores	(282	)	(68	)	(17	)	6		12
Licensed stores	(25	)	2		(6	)	(1	)	(24	)
Total	1,985		2,254		2,042		1,677		1,599
Stores open at year end:
Americas⁽¹⁾
Company-operated stores	9,684		9,413		9,019		8,671		8,395
Licensed stores	7,770		7,146		6,588		6,132		5,796
China/Asia Pacific⁽²⁾
Company-operated stores	5,159		3,070		2,811		2,452		1,132
Licensed stores	3,371		4,409		3,632		3,010		3,492
EMEA⁽³⁾
Company-operated stores	490		502		523		737		817
Licensed stores	2,830		2,472		2,119		1,625		1,323
Corporate and Other⁽⁴⁾
Company-operated stores	8		290		358		375		369
Licensed stores	12		37		35		41		42
Total	29,324		27,339		25,085		23,043		21,366

⁽¹⁾

Americas store data ~~has been adjusted for~~includes the transfer of 112 company-operated retail stores in Brazil to licensed stores as a result of the sale of ~~store locations in Chile to a joint venture partner~~our Brazil retail operations in the ~~fourth~~second quarter of fiscal ~~2013 by reclassifying historical information from company-operated stores to licensed stores,~~2018 and ~~to exclude Seattle's Best Coffee and Evolution Fresh, which are reported within All Other Segments. Americas store data also includes~~ the closure of 132 Target Canada licensed stores in the second quarter of fiscal 2015.

⁽²⁾

China/Asia Pacific store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2014. China/Asia Pacific store data also includes the transfer of 1,009 Japan stores from licensed stores to company-operated as a result of the acquisition of Starbucks Japan in the first quarter of fiscal ~~2015.~~2015, the transfer of 133 Singapore stores from company-operated stores to licensed stores in the fourth quarter of fiscal 2017 and the transfer of 1,477 licensed stores in East China to company-operated retail stores as a result of the purchase of our East China joint venture in the first quarter of fiscal 2018.


⁽³⁾	~~EMEA store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2012 and in the second and fourth quarters of fiscal 2014.~~ EMEA store data also includes the transfer of 144 Germany company-operated retail stores to licensed stores as a result of the sale to AmRest Holdings SE in the third quarter of fiscal 2016.


⁽⁴⁾	~~All~~As of September 30, 2018, Corporate and Other ~~Segments store data includes 337 Teavana~~^® ~~stores acquired in the second quarter of fiscal 2013.~~ included 12 licensed Teavana-branded stores.


Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

Our fiscal year ends on the Sunday closest to September 30. The fiscal years ended on September 30, 2018 and October 1, 2017 included 52 weeks. The fiscal year ended on October 2, 2016 included 53 weeks, with the extra week falling in our fourth fiscal quarter. ~~Fiscal years ended on September 27, 2015 and September 28, 2014 both included 52 weeks.~~ Comparable store sales percentages ~~below~~for fiscal 2016 are calculated excluding the 53^rd week. All references to store counts, including data for new store openings, are reported net of related store closures, unless otherwise noted.

Financial Highlights

Total net revenues increased ~~11%~~10% to ~~$21.3~~$24.7 billion in fiscal ~~2016~~2018 compared to ~~$19.2~~$22.4 billion in fiscal ~~2015.~~2017.

Global comparable store sales grew 5%2% driven by a 4%3% increase in average ~~ticket and a 1% increase in the number of transactions.~~ticket.

Consolidated operating income ~~increased~~decreased to ~~$4.2~~$3.9 billion in fiscal ~~2016~~2018 compared to operating income of ~~$3.6~~$4.1 billion in fiscal ~~2015.~~2017. Fiscal ~~2016~~2018 operating margin was ~~19.6%~~15.7% compared to ~~18.8%~~18.5% in fiscal ~~2015.~~2017. Operating margin ~~expansion~~compression in fiscal ~~2016~~2018 was primarily driven by ~~sales leverage~~food and ~~lower commodity~~beverage-related mix shifts, largely in the Americas segment, the impact of our ownership change in East China at the end of the first quarter of fiscal 2018, higher restructuring and impairment costs ~~partially offset by investments in partners (employees)~~ and higher salaries and benefits related to digital ~~platforms.~~platforms, technology infrastructure and innovations.

•

Restructuring and impairment charges increased to $224 million in fiscal 2018 compared to $154 million in fiscal 2017. Increased costs were primarily related to higher asset impairments associated with the decision to close certain Starbucks^® company-operated stores in the U.S. and Canada, higher goodwill impairment charges related to our Switzerland retail reporting unit and EMEA restructuring costs.

Earnings per share ~~("EPS"~~(“EPS”) for fiscal ~~2016~~2018 increased to ~~$1.90 and included $0.06 per share for the extra week~~$3.24, compared to EPS of $1.97 in fiscal ~~2016. Fiscal 2015 EPS~~2017. The increase was ~~$1.82 and included $0.26 per share~~primarily driven by the gains from the ~~gain on the fair value adjustment~~acquisition of our ~~preexisting equity interest in Starbucks Japan upon acquisition.~~East China joint venture and the sale of our Tazo brand. Additionally, the net favorable impact from the Tax Cuts and Jobs Act (the “Tax Act”) also contributed to the increase.

Cash flows from operations were ~~$4.6~~$11.9 billion in fiscal ~~2016~~2018 compared to ~~$3.7~~$4.3 billion in fiscal ~~2015.~~2017. The change was primarily due to ~~increased earnings, the lapping~~receipt of the ~~non-cash acquisition~~upfront payment from Nestlé related ~~gain for Starbucks Japan and~~to the ~~timing of our cash payments for income taxes.~~Global Coffee Alliance.

Capital expenditures were ~~$1.4~~$2.0 billion in fiscal ~~2016~~2018 compared to ~~$1.3~~$1.5 billion in fiscal ~~2015.~~2017.

We returned ~~$3.2~~$8.9 billion to our shareholders in fiscal ~~2016~~2018 through share repurchases and dividends compared to ~~$2.4~~$3.5 billion in fiscal ~~2015.~~2017.

Overview

Starbucks results for fiscal ~~2016~~2018 reflect the impact of certain restructuring and streamlining efforts, beginning in the fourth quarter of fiscal 2017, to focus on accelerating growth in high-returning businesses and removing non-core, slow growth activities. These efforts primarily include the acquisition of our East China joint venture, the conversion of our Singapore, Taiwan and Brazil operations to licensed models, the closure of Teavana^TM/MC retail stores, the sale of the Tazo brand, the licensing of our CPG and foodservice businesses to Nestlé, and the closure of certain company-operated stores in the U.S. and Canada, among other actions. These streamlining efforts span across all segments and our corporate functions.

On August 26, 2018, our Channel Development segment finalized licensing and distribution agreements with Nestlé to sell and market our CPG and foodservice products. The scope of the arrangement converts the majority of our previously defined Channel Development segment operations, as well as certain smaller businesses previously reported in the Americas, EMEA and Corporate and Other (previously All Other Segment), from company-owned to licensed operations with Nestlé. As a result, we realigned our organizational and operating segment structures in support of the newly established Global Coffee Alliance. Our reportable segments have been restated as if those smaller businesses were previously within our Channel Development segment.

Concurrent with the change in reportable operating segments, we revised our prior period financial information to reflect comparable financial information for the new segment structure. Further, in an effort to report operating expenses in line with the corresponding revenue generating activities, we have changed the classification of certain costs, primarily within our CAP segment and mainly from other operating expenses to general and administrative expenses. This reclassification has been retrospectively applied and was determined to be immaterial.

Starbucks largest acquisition to date affects our CAP segment. As a result of acquiring the remaining interest in our East China joint venture at the end of the first quarter of fiscal 2018, we began recording 100% of its revenues and expenses on our consolidated statements of earnings at the beginning of the second quarter of fiscal 2018. This is in contrast with our previous joint venture model, where we recorded only revenues and expenses from products sales to and royalties received from East China, as well as our proportionate share of the joint venture's net profit. The change from equity method to consolidation

method lowered the operating margin of our Consolidated and CAP segment, primarily due to incremental depreciation and amortization expenses and lower income from equity investees.

Starbucks results for fiscal 2018 continued to demonstrate the strength of our global business model and our ability to successfully make disciplined investments in our business and our ~~partners (employees). Our~~partners. Consolidated total net revenues ~~grew 11% over fiscal 2015, and consolidated operating margin expanded 80 basis points from 18.8% in fiscal 2015~~increased 10% to ~~19.6% in fiscal 2016, largely driven by sales leverage and lower commodity costs, partially offset by investments in our partners and digital platforms.~~

~~The Americas segment continued to perform well in fiscal 2016, with revenues growing 11% to $14.8~~$24.7 billion, primarily driven by incremental revenues from 1,997 net new store openings over the past 12 months, incremental revenues from the impact of our ownership change in East China, 2% growth in global comparable store sales ~~growth~~and favorable foreign currency translation. These increases were partially offset by the absence of revenue related to the closure of our Teavana^TM/MC retail stores, initiated in the fourth quarter of fiscal 2017 and substantially ceased during fiscal 2018 and the sale of our Singapore retail operations to a licensed partner in the fourth quarter of fiscal 2017. Consolidated operating income declined $251 million, or 6%, ~~comprised~~to $3.9 billion. Operating margin declined 280 basis points to 15.7%, primarily due to food and beverage-related mix shifts, largely in the Americas segment, the impact of ~~a 5% increase~~our ownership change in ~~average ticket~~East China, higher restructuring and ~~a 1% increase in number~~impairment costs and higher salaries and benefits related to digital platforms, technology infrastructure and innovations. Earnings per share of ~~transactions,~~$3.24 increased 64% over the prior year earnings per share of $1.97.

Americas revenue grew by 7% to $16.7 billion, primarily driven by incremental revenues from ~~804~~895 net new store openings over the last 12 months and comparable store sales growth of 2%, partially offset by the ~~impact~~absence of revenue related to the ~~extra week in fiscal 2016. Growth in our iced beverages, including coffee, tea and espresso, paired with beverage innovation and the success~~conversion of our ~~food offerings, drove~~Brazil retail business to fully licensed operations in the ~~increase in comparable store sales. Americas~~second quarter of fiscal 2018. Operating income declined $39 million to $3.6 billion and operating margin ~~grew 110~~of 21.6% declined 180 basis points from a year ago, primarily due to ~~25.3% in fiscal 2016, primarily driven by sales leverage~~food and ~~lower commodity costs, partially offset by~~beverage-related mix shifts, increased investments in our store partners and ~~digital platforms.~~

Our fiscal 2016 China/Asia Pacific segment results reflected higher revenues from the opening of 981 net new stores over the past year, incremental revenues associated with the ownership change in Starbucks Japan, a 3% increase in comparable store sales and the impact of the ~~extra week in fiscal 2016. Operating margin expanded 60 basis points to 21.5%, driven by sales leverage, higher income from our joint venture operations and~~ ~~favorability from~~ ~~changes to certain business tax structures in China. This favorability was~~May 29th anti-bias training. These increases were partially offset by ~~unfavorable foreign currency translation and~~sales leverage.

In our CAP segment, revenue grew by 38% to $4.5 billion, primarily driven by the impact of our ownership change in ~~Starbucks Japan.~~East China at the end of the first quarter of fiscal 2018, incremental revenues from 756 net new stores over the past 12 months. These increases were partially offset by the absence of revenue related to the sale of our Singapore retail operations to fully licensed operations in the fourth quarter of fiscal 2017. Operating income grew 13% to $867 million, while operating margin declined 420 basis points to 19.4%, primarily due to the impact of our ownership change in East China. We now operate ~~6,443~~8,530 stores in 15 ~~countries~~markets in our ~~China/Asia Pacific~~CAP segment ~~with continued strong performance, reinforcing~~making this our ~~confidence in the long-term growth potential of this market.~~second largest reportable segment.

~~As we continue to execute our strategy of achieving the appropriate balance between company-operated and licensed stores,~~In our EMEA segment, ~~revenues declined 8%~~revenue grew by 9% to ~~$1.1~~$1.0 billion, ~~in fiscal 2016 compared to a year ago. The decline in revenues was~~ primarily driven by ~~lower company-operated store~~increased revenues due to the shift to more licensed stores in the region and unfavorable foreign currency translation. Partially offsetting lower company-operated store revenues were higher licensed store sales, primarily resulting from the opening of ~~294~~356 net new ~~licensed stores and the transfer of 200 company-operated stores to~~ licensed stores over the past 12 months and ~~the impact of the extra week in fiscal 2016. Compared to fiscal 2015, EMEA operating~~favorable foreign currency translation. Operating margin declined 30400 basis points to ~~13.5%~~5.9% primarily due to ~~sales deleverage at certain company-operated stores~~higher impairment of goodwill related to our Switzerland retail business and

~~unfavorable foreign currency exchange,~~ restructuring costs, including severance, asset impairments and business process optimization expenses. These decreases were partially offset by ~~sales leverage driven by the shift in the portfolio towards more licensed stores.~~lapping of a prior year tax settlement.

~~The~~ Channel Development segment revenues grew ~~12%~~by 2% to ~~$1.9~~$2.3 billion, ~~in fiscal 2016,~~ primarily ~~due to higher~~driven by increased sales of packaged coffee and premium single-serve products, ~~driven~~lapping a prior year revenue deduction adjustment and favorable foreign currency translation. These increases were partially offset by ~~sales~~the net impact from the sale of ~~Starbucks~~^® ~~K-Cup~~^®~~portion packs,~~our Tazo brand in the ~~impact~~first quarter of ~~the extra week in~~ fiscal ~~2016~~2018 and ~~increased~~licensing our CPG and foodservice ~~and packaged coffee sales.~~businesses to Nestlé beginning on August 26, 2018. Operating income declined $40 million, or 4%, to $927 million. Operating margin ~~increased 400~~declined 250 basis points to ~~41.8%~~40.4%, primarily driven by ~~strong performance~~business taxes associated with the upfront payment received from ~~our North American~~Nestlé, Global Coffee ~~Partnership joint venture, lower coffee~~Alliance headcount related costs, including employee bonus and retention costs, and ~~leverage on cost of sales. As seen through our Channel Development segment results for fiscal 2016, we continue to expand customer occasions outside~~the impact of our ~~retail stores~~ownership changes, including licensing our CPG and ~~through~~foodservice businesses to Nestlé and the sale of our ~~developing international presence.~~Tazo brand.

Fiscal ~~2017~~2019 — The View Ahead

Turning to fiscal ~~2017,~~2019, we expect continued ~~strength in our revenue, operating margin~~growth through thoughtful long-term investments that create value and ~~earnings per share results in comparison to fiscal 2016.~~reward shareholders. These results are expected to be driven by our ~~7 Strategies for Growth,~~three strategic priorities, which include:

~~Be the Employer of Choice~~

~~Elevate Coffee~~

~~Grow the Store Portfolio~~

~~Create New Customer Occasions~~

~~Drive At-Home Coffee Share and Occasions~~

~~Build Teavana through Starbucks and CPG~~

~~Extend Digital Engagement~~

~~In fiscal 2017, through our 7 Strategies for Growth, we plan to expand our footprint by opening new stores and enhancing the mix and types of stores~~Accelerate growth in our ~~portfolio. Expansion~~targeted, long-term growth markets of the U.S. and China

Expand the global reach of the Starbucks brand leveraging the Global Coffee Alliance

Sharpen our focus on increasing shareholder returns

To successfully achieve these priorities, we will undertake a number of initiatives, including growing our core business in the U.S. through enhancement of the in-store experience, delivery of customer-relevant beverage innovation and digital relationships, and growing our business in China through new store expansion, comparable store sales and business partnerships. Further, we will continue expanding the reach of the Starbucks brand through retail market realignment, including our plans to license the France, Netherlands, Belgium and Luxembourg markets, business simplification and the Global Coffee Alliance. These additional streamlining initiatives will enable us to amplify our focus and resources on core value drivers with the greatest prospect for returns.

We expect moderate revenue growth in fiscal 2019, reflecting implementation of our ~~store portfolio is expected to be coupled with continued customer attachment through our morning~~streamlining activities and ~~lunch dayparts. And, our management team continues to align our leadership with our evolving businesses, including the development of our Global Roastery and Starbucks Reserve~~^® branded stores. As a result of these efforts, we expect consolidated revenue growth to be approximately 8% in fiscal 2017 when compared to our 53-week results in fiscal 2016. After excluding the approximately $400 million of additional revenue attributed to the extra week in fiscal 2016, we expect consolidated revenue growth to be approximately 10% for fiscal 2017 based on a comparable 52-week year. Revenue growth is expected to be driven by comparable store sales ~~in the mid-single digits~~growth and the opening of approximately 2,100 net new stores globally.

Additionally, for fiscal 2017, we expect to continue investing in our partners and digital platforms. These investments provide enhanced wages and benefits and also focus on mobile and loyalty programs. We expect partner and digital investments to increase by approximately $250 million versus an increase of approximately $160 million in fiscal 2016, further demonstrating the importance of and value creation realized from these efforts.

~~We plan for our consolidated~~Consolidated operating margin is expected to ~~increase~~decrease slightly in fiscal ~~2017~~2019 when compared to fiscal ~~2016. Sales leverage~~2018, and ~~cost savings initiatives will offset investments in~~ our ~~business and partners. For fiscal 2017, we expect an~~ effective tax rate ~~of about 34%, and~~is expected to increase slightly from fiscal 2018. While GAAP full-year diluted ~~net~~ earnings per share is expected to bedecrease in ~~the range of $2.09~~fiscal 2019, full-year non-GAAP diluted earnings per share is expected to ~~$2.11.~~grow when excluding gains from acquisitions and divestitures in fiscal 2018, integration costs related to East China and Japan and restructuring and impairment expenses.

Capital expenditures in fiscal ~~2017~~2019 are expected to be approximately ~~$1.6~~$2.0 billion, primarily ~~for~~related to our retail portfolio including investments in our new and existing stores and ~~store renovations, as well as for other investments to support our ongoing growth~~strategic store-related initiatives.

Acquisitions and Divestitures

See Note 2, Acquisitions, Divestitures and ~~Divestitures,~~Strategic Alliance, to the consolidated financial statements included in Item 8 of Part II of this 10-K for information regarding acquisitions and divestitures.

RESULTS OF OPERATIONS — FISCAL ~~2016~~2018 COMPARED TO FISCAL ~~2015~~2017

Consolidated results of operations (in millions):

Revenues


Fiscal Year Ended	Oct 2, 2016		Sep 27, 2015		% Change		Sep 30, 2018		Oct 1, 2017		% Change
Net revenues:
Company-operated stores	$	16,844.1	$	15,197.3	10.8	%	$	19,690.3	$	17,650.7	11.6	%
Licensed stores	2,154.2		1,861.9		15.7		2,652.2		2,355.0		12.6
CPG, foodservice and other	2,317.6		2,103.5		10.2
Other							2,377.0		2,381.1		(0.2	)
Total net revenues	$	21,315.9	$	19,162.7	11.2	%	$	24,719.5	$	22,386.8	10.4	%



Washington		91-1325671
(State of Incorporation)		(IRS Employer ID)



Title of Each Class		Name of Each Exchange on Which Registered
Common Stock, $0.001 par value per share		Nasdaq Global Select Market



Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ ~~(Do not check if a smaller reporting company)~~	Smaller reporting company	¨
		Emerging growth company	¨



PART I
Item 1	Business	2
Item 1A	Risk Factors	10
Item 1B	Unresolved Staff Comments	1618
Item 2	Properties	1618
Item 3	Legal Proceedings	1618
Item 4	Mine Safety Disclosures	1619
PART II
Item 5	Market for the Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities	1720
Item 6	Selected Financial Data	1922
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2225
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	4448
Item 8	Financial Statements and Supplementary Data	4549
	Index For Notes to Consolidated Financial Statements	5054
	Report of Independent Registered Public Accounting Firm	8689
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	8790
Item 9A	Controls and Procedures	8790
Item 9B	Other Information	8992
PART III
Item 10	Directors, Executive Officers and Corporate Governance	9093
Item 11	Executive Compensation	9093
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	9093
Item 13	Certain Relationships and Related Transactions, and Director Independence	9093
Item 14	Principal Accounting Fees and Services	9093
PART IV
Item 15	Exhibits, Financial Statement Schedules	9194
SIGNATURES		92
~~INDEX TO EXHIBITS~~		94101



Name	Age	Position
~~Howard Schultz~~Kevin R. Johnson	6358	~~chairman~~president and chief executive officer
~~Kevin R. Johnson~~Rosalind G. Brewer	56	group president, Americas and chief operating officer
Cliff Burrows	5759	group president, Siren Retail
John Culver	5658	group president, ~~Starbucks~~International, Channel Development and Global ~~Retail~~Coffee & Tea
~~Scott Maw~~Rachel A. Gonzalez	49	~~executive vice president, chief financial officer~~
~~Lucy Lee Helm~~	59	executive vice president, general counsel and secretary
Patrick J. Grismer	56	executive vice president, effective November 12, 2018; executive vice president, chief financial officer and chief accounting officer, effective November 30, 2018
Lucy Lee Helm	61	executive vice president, chief partner officer
Scott Maw	51	executive vice president, chief financial officer (retiring November 30, 2018)
Vivek Varma	52	executive vice president, Public Affairs


	Americas	As a% of Total Americas Stores		CAP	As a% of Total CAP Stores		EMEA	As a% of Total EMEA Stores		All Other Segments	As a% of Total All Other Segments Stores		Total	As a% of Total Stores		Americas	As a% of Total Americas Stores		CAP	As a% of Total CAP Stores		EMEA	As a% of Total EMEA Stores		Corporate and Other	As a% of Total Corporate and Other		Total	As a% of Total Stores
Company-operated stores	9,019	58	%	2,811	44	%	523	20	%	358	91	%	12,711	51	%	9,684	55	%	5,159	60	%	490	15	%	8	40	%	15,341	52	%
Licensed stores	6,588	42	%	3,632	56	%	2,119	80	%	35	9	%	12,374	49	%	7,770	45	%	3,371	40	%	2,830	85	%	12	60	%	13,983	48	%
Total	15,607	100	%	6,443	100	%	2,642	100	%	393	100	%	25,085	100	%	17,454	100	%	8,530	100	%	3,320	100	%	20	100	%	29,324	100	%



	Stores Open as of								Stores Open as of
	Sep 27, 2015	Opened	Closed		Transfers		Net		Oct 2, 2016
Americas:
U.S.	7,559	358	(37	)	—		321		7,880
Canada	1,009	45	(19	)	—		26		1,035
Brazil	103	3	(2	)	—		1		104
Total Americas	8,671	406	(58	)	—		348		9,019
China/Asia Pacific:
China	1,026	253	(7	)	—		246		1,272
Japan	1,073	85	(18	)	—		67		1,140
Thailand	237	38	(2	)	—		36		273
Singapore	116	13	(3	)	—		10		126
Total China/Asia Pacific	2,452	389	(30	)	—		359		2,811
EMEA⁽¹⁾:
U.K.	428	3	(12	)	(53	)	(62	)	366
France	76	—	(2	)	—		(2	)	74
Switzerland	56	1	(1	)	—		—		56
Austria	18	—	(1	)	—		(1	)	17
Netherlands	10	—	—		—		—		10
Germany	149	1	(3	)	(147	)	(149	)	—
Total EMEA	737	5	(19	)	(200	)	(214	)	523
All Other Segments:
Teavana	371	3	(19	)	—		(16	)	355
Evolution Fresh	3	—	(1	)	—		(1	)	2
Starbucks Reserve^® Roastery & Tasting Rooms	1	—	—		—		—		1
Total All Other Segments	375	3	(20	)	—		(17	)	358
Total company-operated	12,235	803	(127	)	(200	)	476		12,711


⁽¹⁾	~~"Other"~~“Other” primarily consists of sales of serveware, ready-to-drink beverages ~~serveware~~ and coffee-making equipment, among other items.


⁽¹⁾	~~EMEA store data includes the transfer of 144 Germany company-operated retail stores to licensed stores as a result of the sale to AmRest Holdings SE in the third quarter of fiscal 2016.~~


•	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



	High		Low		Cash Dividends Declared
Fiscal 2016:
Fourth Quarter	$	58.84	$	52.90	$	0.25
Third Quarter	61.64		54.01		0.20
Second Quarter	61.79		52.63		0.20
First Quarter	64.00		54.81		0.20
Fiscal 2015:
Fourth Quarter	$	59.32	$	42.05	$	0.20
Third Quarter	54.75		46.28		0.16
Second Quarter	49.60		39.28		0.16
First Quarter	42.10		35.39		0.16


	Payments Due by Period										Payments Due by Period
Contractual Obligations ⁽¹⁾	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years		Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years
Operating lease obligations⁽²⁾	$	7,285.0	$	1,125.1	$	1,902.6	$	1,561.8	$	2,695.5	$	9,353.8	$	1,340.6	$	2,463.4	$	2,045.4	$	3,504.4
Financing lease obligations	62.0		4.3		8.6		8.4		40.7		58.0		4.4		8.7		8.3		36.6
Debt obligations
Principal payments	3,600.0		400.0		350.0		750.0		2,100.0		9,548.4		350.0		1,250.0		1,500.0		6,448.4
Interest payments	932.2		94.2		181.3		163.0		493.7		3,698.0		278.9		586.0		488.0		2,345.1
Purchase obligations⁽³⁾	1,223.1		786.4		371.5		57.5		7.7		1,267.1		806.6		342.9		101.0		16.6
Other obligations⁽⁴⁾	182.7		18.2		35.7		16.5		112.3		417.7		31.0		64.3		98.8		223.6
Total	$	13,285.0	$	2,428.2	$	2,849.7	$	2,557.2	$	5,449.9	$	24,343.0	$	2,811.5	$	4,715.3	$	4,241.5	$	12,574.7


⁽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 ~~90%~~92% of total purchase obligations.


⁽⁴⁾	Other obligations include other long-term liabilities primarily consisting of the Tax Act transition tax, asset retirement obligations and hedging instruments.



	Increase/(Decrease) to Net Earnings					Increase/(Decrease) to OCI
	10% Increase in Underlying Rate		10% Decrease in Underlying Rate			10% Increase in Underlying Rate		10% Decrease in Underlying Rate
Commodity hedges	$	12	$	(12	)	$	1	$	(1	)


					Change in Fair Value									Change in Fair Value
	Stated Interest Rate		Fair Value		100 Basis Point Increase in Underlying Rate			100 Basis Point Decrease in Underlying Rate		Stated Interest Rate		Fair Value		100 Basis Point Increase in Underlying Rate			100 Basis Point Decrease in Underlying Rate
	Stated Interest Rate		Fair Value		100 Basis Point Increase in Underlying Rate			100 Basis Point Decrease in Underlying Rate		Stated Interest Rate		Fair Value		100 Basis Point Increase in Underlying Rate			100 Basis Point Decrease in Underlying Rate
2016 notes	0.875	%	$	400	$	—		$	—
2018 notes	2.000	%	$	357	$	(7	)	$	7	2.000	%	$	350	$	(1	)	$	1
2020 notes										2.200	%	$	490	$	(10	)	$	10
2021 notes	2.100	%	$	766	$	(31	)	$	31	2.100	%	$	733	$	(17	)	$	17
2022 notes	2.700	%	$	526	$	(27	)	$	27	2.700	%	$	486	$	(17	)	$	17
2023 notes(1)	3.850	%	$	839	$	(51	)	$	51	3.850	%	$	759	$	—		$	—
2023 notes										3.100	%	$	986	$	(40	)	$	40
2024 notes										0.372	%	$	743	$	(40	)	$	40
2025 notes										3.800	%	$	1,249	$	(74	)	$	74
2026 notes	2.450	%	$	509	$	(43	)	$	43	2.450	%	$	451	$	(34	)	$	34
2028 notes										3.500	%	$	576	$	(47	)	$	47
2028 notes										4.000	%	$	754	$	(61	)	$	61
2045 notes	4.300	%	$	417	$	(70	)	$	70	4.300	%	$	330	$	(53	)	$	53
2047 notes										3.750	%	$	438	$	(81	)	$	81
2048 notes										4.500	%	$	977	$	(159	)	$	159


⁽¹⁾	Amount disclosed is net of ($32 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.


	Common Stock					Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Shareholders’ Equity			Noncontrolling Interests			Total			Common Stock					Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Shareholders’ Equity			Noncontrolling Interests			Total
	Shares		Amount			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Shareholders’ Equity			Noncontrolling Interests			Total			Shares		Amount			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Shareholders’ Equity			Noncontrolling Interests			Total
Balance, September 29, 2013	753.2		$	0.8		$	282.1		$	4,130.3		$	67.0		$	4,480.2		$	2.1		$	4,482.3
Net earnings/(loss)	—		—			—			2,068.1			—			2,068.1			(0.4		)	2,067.7
Other comprehensive income/(loss)												(41.7		)	(41.7		)	—			(41.7		)
Stock-based compensation expense	—		—			185.1			—			—			185.1			—			185.1
Exercise of stock options/vesting of RSUs, including tax benefit of $114.8	6.5		—			154.8			—			—			154.8			—			154.8
Sale of common stock, including tax benefit of $0.2	0.3		—			22.3			—			—			22.3			—			22.3
Repurchase of common stock	(10.5	)	(0.1		)	(604.9		)	(164.8		)	—			(769.8		)	—			(769.8		)
Cash dividends declared, $0.550 per share	—		—			—			(827.0		)	—			(827.0		)	—			(827.0		)
Balance, September 28, 2014	749.5		$	0.7		$	39.4		$	5,206.6		$	25.3		$	5,272.0		$	1.7		$	5,273.7
Net earnings/(loss)	—		—			—			2,757.4			—			2,757.4			1.9			2,759.3
Other comprehensive income/(loss)												(193.6		)	(193.6		)	(31.1		)	(224.7		)
Stock-based compensation expense	—		—			211.7			—			—			211.7			—			211.7
Exercise of stock options/vesting of RSUs, including tax benefit of $131.3	14.6		—			224.4			—			—			224.4			—			224.4
Sale of common stock, including tax benefit of $0.2	0.6		—			23.5			—			—			23.5			—			23.5
Repurchase of common stock	(29.0	)	—			(459.6		)	(972.2		)	—			(1,431.8		)	—			(1,431.8		)
Cash dividends declared, $0.680 per share	—		—			—			(1,016.2		)	—			(1,016.2		)	—			(1,016.2		)
Two-for-one stock split	749.4		0.8			—			(0.8		)	—			—			—			—
Noncontrolling interest resulting from acquisition	—		—			—			—			—			—			411.1			411.1
Purchase of noncontrolling interest	—		—			1.7			—			(31.1		)	(29.4		)	(381.7		)	(411.1		)
Balance, September 27, 2015	1,485.1		$	1.5		$	41.1		$	5,974.8		$	(199.4	)	$	5,818.0		$	1.8		$	5,819.8		1,485.1		$	1.5		$	41.1		$	5,974.8		$	(199.4	)	$	5,818.0		$	1.8		$	5,819.8
Net earnings/(loss)	—		—			—			2,817.7			—			2,817.7			1.2			2,818.9
Other comprehensive income/(loss)												91.0			91.0			—			91.0
Net earnings																								—		—			—			2,817.7			—			2,817.7			1.2			2,818.9
Other comprehensive income																								—		—			—			—			91.0			91.0			—			91.0
Stock-based compensation expense	—		—			219.6			—			—			219.6			—			219.6			—		—			219.6			—			—			219.6			—			219.6
Exercise of stock options/vesting of RSUs, including tax benefit of $124.3	9.8		—			153.0			—			—			153.0			—			153.0			9.8		—			153.0			—			—			153.0			—			153.0
Sale of common stock, including tax benefit of $0.2	0.5		—			26.5			—			—			26.5			—			26.5			0.5		—			26.5			—			—			26.5			—			26.5
Repurchase of common stock	(34.9	)	—			(399.1		)	(1,596.5		)	—			(1,995.6		)	—			(1,995.6		)	(34.9	)	—			(399.1		)	(1,596.5		)	—			(1,995.6		)	—			(1,995.6		)
Cash dividends declared, $0.850 per share	—		—			—			(1,246.2		)	—			(1,246.2		)	—			(1,246.2		)
Cash dividends declared, $0.85 per share																								—		—			—			(1,246.2		)	—			(1,246.2		)	—			(1,246.2		)
Noncontrolling interest resulting from acquisition	—		—			—			—			—			—			3.7			3.7			—		—			—			—			—			—			3.7			3.7
Balance, October 2, 2016	1,460.5		$	1.5		$	41.1		$	5,949.8		$	(108.4	)	$	5,884.0		$	6.7		$	5,890.7		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, including tax benefit of $77.4																								8.1		—			117.0			—			—			117.0			—			117.0
Sale of common stock, including tax benefit of $0.2																								0.5		—			28.7			—			—			28.7			—			28.7
Repurchase of common stock																								(37.5	)	(0.1		)	(323.6		)	(1,755.4		)	—			(2,079.1		)	—			(2,079.1		)
Cash dividends declared, $1.05 per share																								—		—			—			(1,515.9		)	—			(1,515.9		)	—			(1,515.9		)
Balance, October 1, 2017																								1,431.6		$	1.4		$	41.1		$	5,563.2		$	(155.6	)	$	5,450.1		$	6.9		$	5,457.0
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



Note 1	Summary of Significant Accounting Policies	5155
Note 2	Acquisitions, Divestitures and ~~Divestitures~~Strategic Alliance	6165
Note 3	Derivative Financial Instruments	6367
Note 4	Fair Value Measurements	6770
Note 5	Inventories	6972
Note 6	Equity and Cost Investments	7072
Note 7	Supplemental Balance Sheet Information	7173
Note 8	Other Intangible Assets and Goodwill	7174
Note 9	Debt	7275
Note 10	Leases	7478
Note 11	Equity	7578
Note 12	Employee Stock and Benefit Plans	7780
Note 13	Income Taxes	7982
Note 14	Earnings per Share	8185
Note 15	Commitments and Contingencies	8185
Note 16	Segment Reporting	8286
Note 17	Selected Quarterly Financial Information (unaudited)	8588
Note 18	Subsequent Events	88



	September 27, 2015
	As Filed		Reclass			As Adjusted
Current deferred income tax assets	$	381.7	$	(381.7	)	$	—
Long-term deferred income tax assets	828.9		351.9			1,180.8
Current deferred income tax liabilities (included in Accrued liabilities)	5.4		(5.4		)	—
Long-term deferred income tax liabilities (included in Other long-term liabilities)	67.8		(24.4		)	43.4
Net deferred tax asset	$	1,137.4	$	—		$	1,137.4



Consideration:
Cash paid for Sazaby's 39.5% equity interest	$	508.7
Fair value of our preexisting 39.5% equity interest	577.0
Total consideration	$	1,085.7

Fair value of assets acquired and liabilities assumed:
Cash and cash equivalents	$	224.4
Accounts receivable, net	37.4
Inventories	26.4
Prepaid expenses and other current assets	35.7
Property, plant and equipment	282.9
Other long-term assets	141.4
Other intangible assets	323.0
Goodwill	815.6
Total assets acquired	1,886.8
Accounts payable	(54.5		)
Accrued liabilities	(115.9		)
Stored value card liability	(36.5		)
Deferred income taxes	(67.3		)
Other long-term liabilities	(115.8		)
Total liabilities assumed	(390.0		)
Noncontrolling interest	(411.1		)
Total consideration	$	1,085.7



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


	Pro Forma (unaudited)				Pro Forma (unaudited)
	Year Ended				Year Ended
	Sep 27, 2015		Sep 28, 2014		Sep 30, 2018		Oct 1, 2017 ⁽¹⁾
Revenue	$	19,254.5	$	17,646.4	$	24,990.4	$	23,315.0
Net earnings attributable to Starbucks⁽¹⁾	2,380.9		2,449.9		3,196.8		4,209.0


⁽¹⁾	The pro forma net earnings attributable to Starbucks for fiscal ~~2014~~2017 includes ~~the~~ acquisition-related gain of ~~$390.6 million~~$1.4 billion and transaction and integration costs of ~~$13.6~~$39.3 million for the year ended ~~September 28, 2014.~~October 1, 2017.


	Net Gains/(Losses) Included in AOCI						Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months				Contract Remaining Maturity (Months)	Net Gains/(Losses) Included in AOCI									Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months			Contract Remaining Maturity (Months)
	Oct 2, 2016			Sep 27, 2015						Sep 30, 2018				Oct 1, 2017			Oct 2, 2016
Cash Flow Hedges:
Interest rates	$	20.5		$	30.1		$	2.9			0	$	24.7		$	17.6		$	20.5		$	4.2		0
Cross-currency swaps	(7.7		)	(27.8		)	—				98	(12.6		)	(6.0		)	(7.7		)	—			74
Foreign currency - other	(0.4		)	29.0			3.3				35	5.8			(9.1		)	(0.4		)	3.8			36
Coffee	(1.6		)	(5.7		)	(1.4		)		6	(0.2		)	(6.6		)	(1.6		)	(0.2		)	5
Net Investment Hedges:
Foreign currency	1.3			1.3			—				0	16.0			16.2			1.3			—			0
Foreign currency debt												3.6			(2.2		)	—			—			66


	Year Ended												Year Ended
	Gains/(Losses) Recognized in OCI Before Reclassifications						Gains/(Losses) Reclassified from AOCI to Earnings						Gains/(Losses) Recognized in OCI Before Reclassifications									Gains/(Losses) Reclassified from AOCI to Earnings
	Oct 2, 2016			Sep 27, 2015			Oct 2, 2016			Sep 27, 2015			Sep 30, 2018			Oct 1, 2017			Oct 2, 2016			Sep 30, 2018			Oct 1, 2017			Oct 2, 2016
Cash Flow Hedges:
Interest rates	$	(10.3	)	$	(6.8	)	$	5.0		$	3.2		$	14.1		$	—		$	(10.3	)	$	4.9		$	4.8		$	5.0
Cross-currency swaps	(75.7		)	11.4			(101.1		)	46.2			(6.1		)	59.5			(75.7		)	2.2			57.2			(101.1		)
Foreign currency - other	(25.4		)	52.0			19.1			26.1			16.7			1.8			(25.4		)	(3.6		)	11.4			19.1
Coffee	1.7			(9.0		)	(2.8		)	(3.5		)	(0.3		)	(8.1		)	1.7			(7.4		)	(2.7		)	(2.8		)
Net Investment Hedges:
Foreign currency	—			4.3			—			7.2			(0.1		)	23.6			—			—			—			—
Foreign currency debt													7.9			(3.5		)	—			—			—			—


	Gains/(Losses) Recognized in Earnings						Gains/(Losses) Recognized in Earnings
	Oct 2, 2016			Sep 27, 2015			Sep 30, 2018			Oct 1, 2017			Oct 2, 2016
Non-Designated Derivatives:
Foreign currency - other	$	(5.7	)	$	27.1		$	4.6		$	4.6		$	(5.7	)
Dairy	(5.5		)	(3.8		)	(2.4		)	—			(5.5		)
Diesel fuel and other commodities	(0.2		)	(9.0		)	3.7			1.3			(0.2		)
Designated Fair Value Hedging Instruments:
Interest rate swap							(33.7		)	(5.2		)	—


	Derivative Assets				Derivative Liabilities				Derivative Assets				Derivative Liabilities
	Oct 2, 2016		Sep 27, 2015		Oct 2, 2016		Sep 27, 2015		Sep 30, 2018		Oct 1, 2017		Sep 30, 2018		Oct 1, 2017
Designated Derivative Hedging Instruments:
Interest rates	$	—	$	0.2	$	—	$	—
Designated Derivative Instruments:
Cross-currency swaps	—		26.9		57.0		16.3		$	5.8	$	12.4	$	9.3	$	9.8
Foreign currency - other	20.8		45.4		24.0		2.2		13.6		7.7		5.3		20.8
Coffee	1.8		—		—		2.7
Non-designated Derivative Hedging Instruments:
Foreign currency - other	6.2		32.7		6.5		10.1
Net investment hedges									—		0.3		—		—
Interest rate swap									—		—		32.5		3.8
Non-designated Derivative Instruments:
Foreign currency									13.7		15.8		2.5		1.4
Dairy	1.5		0.1		1.6		1.1		0.2		—		0.1		2.4
Diesel fuel and other commodities	3.8		0.2		0.5		1.3		1.6		1.6		0.3		0.3


			Fair Value Measurements at Reporting Date Using								Fair Value Measurements at Reporting Date Using
	Balance at Oct 2, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		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	$	2,128.8	$	2,128.8	$	—	$	—	$	8,756.3	$	8,756.3	$	—	$	—
Short-term investments:
Available-for-sale securities
Agency obligations	1.3		—		1.3		—
Commercial paper	2.6		—		2.6		—		8.4		—		8.4		—
Corporate debt securities	34.2		—		34.2		—		91.8		—		91.8		—
Foreign government obligations	5.5		—		5.5
U.S. government treasury securities	15.8		15.8		—		—
State and local government obligations	0.5		—		0.5		—
Certificates of deposit	5.8		—		5.8		—
Mortgage and other asset-backed securities									6.0		—		6.0		—
Total available-for-sale securities	65.7		15.8		49.9		—		106.2		—		106.2		—
Trading securities	68.7		68.7		—		—		75.3		75.3		—		—
Total short-term investments	134.4		84.5		49.9		—		181.5		75.3		106.2		—
Prepaid expenses and other current assets:
Derivative assets	27.7		3.1		24.6		—		24.5		1.2		23.3		—
Long-term investments:
Available-for-sale securities
Agency obligations	44.4		—		44.4		—		5.9		—		5.9		—
Corporate debt securities	459.3		—		459.3		—		114.5		—		114.5		—
Auction rate securities	5.7		—		—		5.7		5.9		—		—		5.9
Foreign government obligations	46.7		—		46.7		—		3.6		—		3.6		—
U.S. government treasury securities	358.2		358.2		—		—		108.1		108.1		—		—
State and local government obligations	57.5		—		57.5		—		4.8		—		4.8		—
Mortgage and other asset-backed securities	169.9		—		169.9		—		24.9		—		24.9		—
Total long-term investments	1,141.7		358.2		777.8		5.7		267.7		108.1		153.7		5.9
Other long-term assets:
Derivative assets	6.4		—		6.4		—		10.4		—		10.4		—
Total assets	$	3,439.0	$	2,574.6	$	858.7	$	5.7	$	9,240.4	$	8,940.9	$	293.6	$	5.9
Liabilities:
Accrued liabilities:
Derivative liabilities	$	18.0	$	1.7	$	16.3	$	—	$	6.5	$	0.4	$	6.1	$	—
Other long-term liabilities:
Derivative liabilities	71.6		—		71.6		—		43.5		—		43.5		—
Total liabilities	$	89.6	$	1.7	$	87.9	$	—	$	50.0	$	0.4	$	49.6	$	—


			Fair Value Measurements at Reporting Date Using								Fair Value Measurements at Reporting Date Using
	Balance at Sep 27, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at Oct 1, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	1,530.1	$	1,530.1	$	—	$	—	$	2,462.3	$	2,462.3	$	—	$	—
Short-term investments:
Available-for-sale securities
Agency obligations									7.5		—		7.5		—
Commercial paper									2.0		—		2.0		—
Corporate debt securities	10.2		—		10.2		—		49.4		—		49.4		—
Foreign government obligations	2.0		—		2.0		—		7.1		—		7.1		—
U.S. government treasury securities									81.4		81.4		—		—
State and local government obligations	3.3		—		3.3		—		2.0		—		2.0		—
Certificates of deposit									2.3		—		2.3		—
Total available-for-sale securities	15.5		—		15.5		—		151.7		81.4		70.3		—
Trading securities	65.8		65.8		—		—		76.9		76.9		—		—
Total short-term investments	81.3		65.8		15.5		—		228.6		158.3		70.3		—
Prepaid expenses and other current assets:
Derivative assets	50.8		—		50.8		—		13.4		0.1		13.3		—
Long-term investments:
Available-for-sale securities
Agency obligations	8.6		—		8.6		—		21.8		—		21.8		—
Corporate debt securities	121.8		—		121.8		—		207.4		—		207.4		—
Auction rate securities	5.9		—		—		5.9		5.9		—		—		5.9
Foreign government obligations	18.5		—		18.5		—		17.1		—		17.1		—
U.S. government treasury securities	104.8		104.8		—		—		127.4		127.4		—		—
State and local government obligations	9.7		—		9.7		—		7.0		—		7.0		—
Mortgage and other asset-backed securities	43.2		—		43.2		—		155.7		—		155.7		—
Total long-term investments	312.5		104.8		201.8		5.9		542.3		127.4		409.0		5.9
Other long-term assets:
Derivative assets	54.7		—		54.7		—		24.4		—		24.4		—
Total assets	$	2,029.4	$	1,700.7	$	322.8	$	5.9	$	3,271.0	$	2,748.1	$	517.0	$	5.9
Liabilities:
Accrued liabilities:
Derivative liabilities	$	19.2	$	3.6	$	15.6	$	—	$	16.4	$	2.5	$	13.9	$	—
Other long-term liabilities:
Derivative liabilities	14.5		—		14.5		—		22.1		—		22.1		—
Total	$	33.7	$	3.6	$	30.1	$	—	$	38.5	$	2.5	$	36.0	$	—



	Sep 30, 2018		Oct 1, 2017
Income tax receivable	$	955.4	$	68.0
Other prepaid expenses and current assets	507.4		290.1
Total prepaid expenses and current assets	$	1,462.8	$	358.1


(in millions)	Oct 2, 2016		Sep 27, 2015		Sep 30, 2018		Oct 1, 2017
Trade names, trademarks and patents	$	207.8	$	202.8	$	215.9	$	212.1
Other indefinite-lived intangible assets	15.1		15.1		15.1		15.1
Total indefinite-lived intangible assets	$	222.9	$	217.9	$	231.0	$	227.2


	Americas			China/Asia Pacific			EMEA			Channel Development		All Other Segments			Total			Americas		China/Asia Pacific			EMEA			Channel Development			Corporate and Other			Total
Goodwill balance at September 28, 2014	$	219.0		$	74.9		$	59.1		$	23.8	$	479.4		$	856.2
Goodwill balance at October 2, 2016																		$	210.1	$	944.9		$	55.1		$	30.2		$	479.3		$	1,719.6
Acquisition/(divestiture)	(2.5		)	815.6			—			—		—			813.1			—		(7.6		)	—			—			—			(7.6		)
Impairment	—			—			—			—		(0.5		)	(0.5		)	—		—			(17.9		)	—			(69.3		)	(87.2		)
Other	(5.3		)	(86.4		)	(1.7		)	—		—			(93.4		)	1.5		(87.1		)	—			—			—			(85.6		)
Goodwill balance at September 27, 2015	$	211.2		$	804.1		$	57.4		$	23.8	$	478.9		$	1,575.4
Goodwill balance at October 1, 2017																		$	211.6	$	850.2		$	37.2		$	30.2		$	410.0		$	1,539.2
Acquisition/(divestiture)	—			—			(2.6		)	—		5.3			2.7			—		2,164.0			—			(1.5		)	—			2,162.5
Impairment																		—		—			(37.6		)	—			—			(37.6		)
Other	0.4			140.8			0.3			—					141.5			285.8		(27.6		)	11.7			6.0			(398.4		)	(122.5		)
Goodwill balance at October 2, 2016	$	211.6		$	944.9		$	55.1		$	23.8	$	484.2		$	1,719.6
Goodwill balance at September 30, 2018																		$	497.4	$	2,986.6		$	11.3		$	34.7		$	11.6		$	3,541.6


Fiscal Year Ending
2017	$	62.0
2018	60.6
2019	59.5		$	218.1
2020	59.4		218.0
2021	33.9		195.2
2022			168.5
2023			5.1
Thereafter	18.0		6.3
Total estimated future amortization expense	$	293.4	$	811.2