Document And Entity Information
Document And Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Sep. 27, 2015 | Nov. 06, 2015 | Mar. 27, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 27, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | STARBUCKS CORP | ||
Entity Central Index Key | 829,224 | ||
Current Fiscal Year End Date | --09-27 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 69 | ||
Entity Common Stock, Shares Outstanding | 1,484.8 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |||
Net Revenues: | |||||
Total net revenues | $ 19,162.7 | $ 16,447.8 | $ 14,866.8 | ||
Cost of sales including occupancy costs | 7,787.5 | 6,858.8 | 6,382.3 | ||
Store operating expenses | 5,411.1 | 4,638.2 | 4,286.1 | ||
Other operating expenses | 522.4 | 457.3 | 431.8 | ||
Depreciation and amortization expenses | 893.9 | 709.6 | 621.4 | ||
General and administrative expenses | 1,196.7 | 991.3 | 937.9 | ||
Litigation charge/(credit) | 0 | (20.2) | 2,784.1 | ||
Total operating expenses | 15,811.6 | 13,635 | 15,443.6 | ||
Income from equity investees | 249.9 | 268.3 | 251.4 | ||
Operating income/(loss) | 3,601 | 3,081.1 | (325.4) | ||
Gain resulting from acquisition of joint venture | 390.6 | 0 | 0 | ||
Loss on extinguishment of debt | (61.1) | 0 | 0 | ||
Interest income and other, net | 43 | 142.7 | 123.6 | ||
Interest expense | (70.5) | (64.1) | (28.1) | ||
Earnings/(loss) before income taxes | 3,903 | 3,159.7 | (229.9) | ||
Income tax expense/(benefit) | 1,143.7 | 1,092 | (238.7) | ||
Net earnings including noncontrolling interests | 2,759.3 | 2,067.7 | 8.8 | ||
Net earnings/(loss) attributable to noncontrolling interests | 1.9 | (0.4) | 0.5 | ||
Net earnings attributable to Starbucks | $ 2,757.4 | $ 2,068.1 | $ 8.3 | ||
Earnings per share - basic | $ 1.84 | $ 1.37 | $ 0.01 | ||
Earnings per share - diluted | $ 1.82 | [1] | $ 1.35 | [1] | $ 0.01 |
Weighted average shares outstanding: | |||||
Basic | 1,495.9 | 1,506.3 | 1,498.5 | ||
Diluted | 1,513.4 | 1,526.3 | 1,524.5 | ||
Company-operated stores [Member] | |||||
Net Revenues: | |||||
Total net revenues | $ 15,197.3 | $ 12,977.9 | $ 11,793.2 | ||
Licensed stores [Member] | |||||
Net Revenues: | |||||
Total net revenues | 1,861.9 | 1,588.6 | 1,360.5 | ||
CPG, foodservice and other [Member] | |||||
Net Revenues: | |||||
Total net revenues | $ 2,103.5 | $ 1,881.3 | $ 1,713.1 | ||
[1] | As discussed in Note 1, Summary of Significant Accounting Policies, on April 9, 2015, we effected a two-for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All per-share data presented in this note has been retroactively adjusted to reflect this stock split. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Net earnings including noncontrolling interests | $ 2,759.3 | $ 2,067.7 | $ 8.8 |
Other comprehensive income/(loss), net of tax: | |||
Other comprehensive income/(loss) | (224.7) | (41.7) | 44.3 |
Comprehensive income including noncontrolling interests | 2,534.6 | 2,026 | 53.1 |
Comprehensive income/(loss) attributable to noncontrolling interests | (29.2) | (0.4) | 0.5 |
Comprehensive income attributable to Starbucks | 2,563.8 | 2,026.4 | 52.6 |
Available-for-sale Securities [Member] | |||
Other comprehensive income/(loss), net of tax: | |||
Unrealized holding gains/(losses) on available-for-sale securities, before tax | 1.4 | 1.6 | (0.6) |
Unrealized holding gains/(losses) on available-for-sale securities, tax (expense)/benefit | (0.5) | (0.6) | 0.2 |
Cash Flow Hedging [Member] | |||
Other comprehensive income/(loss), net of tax: | |||
Unrealized gains/(losses) on hedging instruments, before tax | 47.6 | 24.1 | 47.1 |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | (16.8) | (7.8) | (24.6) |
Net Investment Hedges [Member] | |||
Other comprehensive income/(loss), net of tax: | |||
Unrealized gains/(losses) on hedging instruments, before tax | 4.3 | 25.5 | 32.8 |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | (1.6) | (9.4) | (12.1) |
Translation Adjustment [Member] | |||
Other comprehensive income/(loss), net of tax: | |||
Translation adjustment, before tax | (222.7) | (75.8) | (41.6) |
Translation adjustment, tax (expense)/benefit | 6 | (1.6) | 0.3 |
Other comprehensive income/(loss) | (171.3) | (77.4) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other comprehensive income/(loss), net of tax: | |||
Reclassification adjustment for net gains (losses) realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, before tax | (65.9) | (1.5) | 46.3 |
Reclassification adjustment for net gains (losses) realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, tax expense/(benefit) | $ 23.5 | $ 3.8 | $ (3.5) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,530.1 | $ 1,708.4 |
Short-term investments | 81.3 | 135.4 |
Accounts receivable, net | 719 | 631 |
Inventories | 1,306.4 | 1,090.9 |
Prepaid expenses and other current assets | 334.2 | 285.6 |
Deferred income taxes, net | 381.7 | 317.4 |
Total current assets | 4,352.7 | 4,168.7 |
Long-term investments | 312.5 | 318.4 |
Equity and cost investments | 352 | 514.9 |
Property, plant and equipment, net | 4,088.3 | 3,519 |
Deferred income taxes, net | 828.9 | 903.3 |
Other long-term assets | 415.9 | 198.9 |
Other intangible assets | 520.4 | 273.5 |
Goodwill | 1,575.4 | 856.2 |
TOTAL ASSETS | 12,446.1 | 10,752.9 |
Current liabilities: | ||
Accounts payable | 684.2 | 533.7 |
Accrued liabilities | 1,760.7 | 1,514.4 |
Insurance reserves | 224.8 | 196.1 |
Stored value card liability | 983.8 | 794.5 |
Total current liabilities | 3,653.5 | 3,038.7 |
Long-term debt | 2,347.5 | 2,048.3 |
Other long-term liabilities | 625.3 | 392.2 |
Total liabilities | 6,626.3 | 5,479.2 |
Shareholders' equity: | ||
Common stock ($0.001 par value) - authorized, 2,400.0 shares; issued and outstanding, 1,485.1 and 1,499.1 shares, respectively | 1.5 | 0.7 |
Additional paid-in capital | 41.1 | 39.4 |
Retained earnings | 5,974.8 | 5,206.6 |
Accumulated other comprehensive income/(loss) | (199.4) | 25.3 |
Total shareholders' equity | 5,818 | 5,272 |
Noncontrolling interests | 1.8 | 1.7 |
Total equity | 5,819.8 | 5,273.7 |
TOTAL LIABILITIES AND EQUITY | $ 12,446.1 | $ 10,752.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 27, 2015 | Sep. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,400,000,000 | 2,400,000,000 |
Common stock, shares issued | 1,485,100,000 | 1,499,100,000 |
Common stock, shares outstanding | 1,485,100,000 | 1,499,100,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
OPERATING ACTIVITIES: | |||
Net earnings including noncontrolling interests | $ 2,759.3 | $ 2,067.7 | $ 8.8 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 933.8 | 748.4 | 655.6 |
Litigation charge | 0 | 0 | 2,784.1 |
Deferred income taxes, net | 21.2 | 10.2 | (1,045.9) |
Income earned from equity method investees | (190.2) | (182.7) | (171.8) |
Distributions received from equity method investees | 148.2 | 139.2 | 115.6 |
Gain resulting from acquisition/sale of equity in joint ventures and certain retail operations | (394.3) | (70.2) | (80.1) |
Loss on extinguishment of debt | 61.1 | 0 | 0 |
Stock-based compensation | 209.8 | 183.2 | 142.3 |
Excess tax benefit on share-based awards | (132.4) | (114.4) | (258.1) |
Other | 53.8 | 36.2 | 23 |
Cash provided/(used) by changes in operating assets and liabilities: | |||
Accounts receivable | (82.8) | (79.7) | (68.3) |
Inventories | (207.9) | 14.3 | 152.5 |
Accounts payable | 137.7 | 60.4 | 88.7 |
Accrued litigation charge | 0 | (2,763.9) | 0 |
Income taxes payable, net | 87.6 | 309.8 | 298.4 |
Accrued liabilities and insurance reserves | 124.4 | 103.9 | 47.3 |
Stored value card liability | 170.3 | 140.8 | 139.9 |
Prepaid expenses, other current assets and other long-term assets | 49.5 | 4.6 | 76.3 |
Net cash provided by operating activities | 3,749.1 | 607.8 | 2,908.3 |
INVESTING ACTIVITIES: | |||
Purchases of investments | (567.4) | (1,652.5) | (785.9) |
Sales of investments | 600.6 | 1,454.8 | 60.2 |
Maturities and calls of investments | 18.8 | 456.1 | 980 |
Acquisitions, net of cash acquired | (284.3) | 0 | (610.4) |
Additions to property, plant and equipment | (1,303.7) | (1,160.9) | (1,151.2) |
Proceeds from sale of equity in joint ventures and certain retail operations | 8.9 | 103.9 | 108 |
Other | 6.8 | (19.1) | (11.9) |
Net cash used by investing activities | (1,520.3) | (817.7) | (1,411.2) |
FINANCING ACTIVITIES: | |||
Proceeds from issuance of long-term debt | 848.5 | 748.5 | 749.7 |
Repayments of long-term debt | (610.1) | 0 | (35.2) |
Cash used for purchase of non-controlling interest | (360.8) | 0 | 0 |
Proceeds from issuance of common stock | 191.8 | 139.7 | 247.2 |
Excess tax benefit on share-based awards | 132.4 | 114.4 | 258.1 |
Cash dividends paid | (928.6) | (783.1) | (628.9) |
Repurchase of common stock | (1,436.1) | (758.6) | (588.1) |
Minimum tax withholdings on share-based awards | (75.5) | (77.3) | (121.4) |
Other | (18.1) | (6.9) | 10.4 |
Net cash used by financing activities | (2,256.5) | (623.3) | (108.2) |
Effect of exchange rate changes on cash and cash equivalents | (150.6) | (34.1) | (1.8) |
Net increase/(decrease) in cash and cash equivalents | (178.3) | (867.3) | 1,387.1 |
CASH AND CASH EQUIVALENTS: | |||
Beginning of period | 1,708.4 | 2,575.7 | 1,188.6 |
End of period | 1,530.1 | 1,708.4 | 2,575.7 |
Cash paid during the period for: | |||
Interest, net of capitalized interest | 69.5 | 56.2 | 34.4 |
Income taxes, net of refunds | $ 1,072.2 | $ 766.3 | $ 539.1 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Shareholders' Equity [Member] | Noncontrolling Interest [Member] |
Common stock, Shares at Sep. 30, 2012 | 749.3 | ||||||
Balance, Amount at Sep. 30, 2012 | $ 5,114.5 | $ 0.7 | $ 39.4 | $ 5,046.2 | $ 22.7 | $ 5,109 | $ 5.5 |
Net earnings | 8.8 | 0 | 0 | 8.3 | 0 | 8.3 | 0.5 |
Other comprehensive income/(loss) | 44.3 | 44.3 | 44.3 | 0 | |||
Stock-based compensation expense | 144.1 | $ 0 | 144.1 | 0 | 0 | 144.1 | 0 |
Exercise of stock options/vesting of RSUs, including tax benefit, Shares | 14.4 | ||||||
Exercise of stock options/vesting of RSUs, including tax benefit, Amount | 366.8 | $ 0.1 | 366.7 | 0 | 0 | 366.8 | 0 |
Sale of common stock, including tax benefit, Shares | 0.3 | ||||||
Sale of common stock, including tax benefit, Amount | 20.4 | $ 0 | 20.4 | 0 | 0 | 20.4 | 0 |
Repurchase of common stock, Shares | (10.8) | ||||||
Repurchase of common stock, Amount | (544.1) | $ 0 | (288.5) | (255.6) | 0 | (544.1) | 0 |
Cash dividends declared | (668.6) | 0 | 0 | (668.6) | 0 | (668.6) | 0 |
Noncontrolling interest resulting from divestiture | (3.9) | $ 0 | 0 | 0 | 0 | 0 | (3.9) |
Common stock, Shares at Sep. 29, 2013 | 753.2 | ||||||
Balance, Amount at Sep. 29, 2013 | 4,482.3 | $ 0.8 | 282.1 | 4,130.3 | 67 | 4,480.2 | 2.1 |
Net earnings | 2,067.7 | 0 | 0 | 2,068.1 | 0 | 2,068.1 | (0.4) |
Other comprehensive income/(loss) | (41.7) | (41.7) | (41.7) | 0 | |||
Stock-based compensation expense | 185.1 | $ 0 | 185.1 | 0 | 0 | 185.1 | 0 |
Exercise of stock options/vesting of RSUs, including tax benefit, Shares | 6.5 | ||||||
Exercise of stock options/vesting of RSUs, including tax benefit, Amount | 154.8 | $ 0 | 154.8 | 0 | 0 | 154.8 | 0 |
Sale of common stock, including tax benefit, Shares | 0.3 | ||||||
Sale of common stock, including tax benefit, Amount | 22.3 | $ 0 | 22.3 | 0 | 0 | 22.3 | 0 |
Repurchase of common stock, Shares | (10.5) | ||||||
Repurchase of common stock, Amount | (769.8) | $ (0.1) | (604.9) | (164.8) | 0 | (769.8) | 0 |
Cash dividends declared | $ (827) | $ 0 | 0 | (827) | 0 | (827) | 0 |
Common stock, Shares at Sep. 28, 2014 | 1,499.1 | 749.5 | |||||
Balance, Amount at Sep. 28, 2014 | $ 5,273.7 | $ 0.7 | 39.4 | 5,206.6 | 25.3 | 5,272 | 1.7 |
Net earnings | 2,759.3 | 0 | 0 | 2,757.4 | 0 | 2,757.4 | 1.9 |
Other comprehensive income/(loss) | (224.7) | (193.6) | (193.6) | (31.1) | |||
Stock-based compensation expense | 211.7 | $ 0 | 211.7 | 0 | 0 | 211.7 | 0 |
Exercise of stock options/vesting of RSUs, including tax benefit, Shares | 14.6 | ||||||
Exercise of stock options/vesting of RSUs, including tax benefit, Amount | $ 224.4 | $ 0 | 224.4 | 0 | 0 | 224.4 | 0 |
Sale of common stock, including tax benefit, Shares | 0.5 | 0.6 | |||||
Sale of common stock, including tax benefit, Amount | $ 23.5 | $ 0 | 23.5 | 0 | 0 | 23.5 | 0 |
Repurchase of common stock, Shares | (29) | ||||||
Repurchase of common stock, Amount | (1,431.8) | $ 0 | (459.6) | (972.2) | 0 | (1,431.8) | 0 |
Cash dividends declared | (1,016.2) | $ 0 | 0 | (1,016.2) | 0 | (1,016.2) | 0 |
Two-for-one stock split, Shares | 749.4 | ||||||
Two-for-one stock split, Amount | 0 | $ 0.8 | (0.8) | 0 | |||
Noncontrolling interest resulting from acquisition | 411.1 | 411.1 | |||||
Purchase of noncontrolling interest | $ (411.1) | 1.7 | (31.1) | (29.4) | (381.7) | ||
Common stock, Shares at Sep. 27, 2015 | 1,485.1 | 1,485.1 | |||||
Balance, Amount at Sep. 27, 2015 | $ 5,819.8 | $ 1.5 | $ 41.1 | $ 5,974.8 | $ (199.4) | $ 5,818 | $ 1.8 |
Consolidated Statements of Equ8
Consolidated Statements of Equity (Parenthetical) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015USD ($)$ / shares | Sep. 28, 2014USD ($)$ / shares | Sep. 29, 2013USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |||
Tax benefit from exercise of stock options/vesting of RSUs | $ 131.3 | $ 114.8 | $ 259.9 |
Tax benefit from sale of common stock | $ 0.2 | $ 0.2 | $ 0.2 |
Cash dividends declared per share | $ / shares | $ 0.680 | $ 0.550 | $ 0.445 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Sep. 27, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Fiscal 2015 During the fourth quarter of fiscal 2015, we sold our company-operated retail store assets and operations in Puerto Rico to Baristas Del Caribe, LLC, converting these operations to a fully licensed market, for a total of $8.9 million . This transaction resulted in a pre-tax gain of $3.7 million , which was included in net interest income and other on the consolidated statements of earnings. On September 23, 2014 , we entered into a tender offer bid agreement with Starbucks Coffee Japan, Ltd. ("Starbucks Japan"), at the time a 39.5% owned equity method investment, and our former joint venture partner, Sazaby League, Ltd. ("Sazaby"), to acquire the remaining 60.5% ownership interest in Starbucks Japan. Acquiring Starbucks Japan further leverages our existing infrastructure to continue disciplined retail store growth and expand our presence into other channels in the Japan market, such as consumer packaged goods ("CPG"), licensing and foodservice . This acquisition was structured as a two-step tender offer. On October 31, 2014 , we acquired Sazaby's 39.5% ownership interest in Starbucks Japan through the first tender offer step for ¥55 billion in cash, or $509 million with Japanese yen converted into U.S. dollars at a reference conversion rate of 108.13 JPY to USD, based on a spot rate that approximates the rate as of the acquisition date, bringing our total ownership in Starbucks Japan to a controlling 79% interest. The following table summarizes the allocation of the total consideration to the fair values of the assets acquired and liabilities assumed as of October 31, 2014 (in millions) : 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 Deferred income taxes, net (current) 23.4 Property, plant and equipment 282.9 Other long-term assets 141.4 Other intangible assets 323.0 Goodwill 815.6 Total assets acquired 1,910.2 Accounts payable (54.5 ) Accrued liabilities (115.9 ) Stored value card liability (36.5 ) Deferred income taxes (noncurrent) (90.7 ) Other long-term liabilities (115.8 ) Total liabilities assumed (413.4 ) Noncontrolling interest (411.1 ) Total consideration $ 1,085.7 During fiscal 2015, the acquisition date fair value of goodwill increased due to revisions that decreased the acquisition date fair value of accrued liabilities and deferred income taxes (noncurrent) and increased the acquisition date fair value of other-long-term liabilities. None of the adjustments had a material effect on our current or interim period consolidated financial statements. The assets acquired and liabilities assumed are reported within our China/Asia Pacific segment. Other current and long-term assets acquired primarily include various deposits, specifically lease and key money deposits. Accrued liabilities and other long-term liabilities assumed primarily include the financing obligations associated with the build-to-suit leases discussed below, as well as asset retirement obligations. The intangible assets are finite-lived and include reacquired rights, licensing agreements with Starbucks Japan's current licensees and Starbucks Japan's customer loyalty program. The reacquired rights of $305.0 million represent the fair value, calculated over the remaining original contractual period, to exclusively operate licensed Starbucks ® retail stores in Japan. These rights will be amortized on a straight-line basis through March 2021 , or over a period of approximately 6.4 years . The licensing agreements were valued at $15.0 million and will be amortized on a straight-line basis over a period of approximately 10.9 years , which is based on the remaining terms of the respective licensing agreements. The customer loyalty program was valued at $3.0 million and will be amortized on a straight-line basis over a period of 4.0 years , which represents the period during which we expect to benefit from these customer relationships. Below is a tabular summary of the acquired intangible assets as of September 27, 2015 , for which the gross balances in total are $33.7 million lower than as of the October 31, 2014 acquisition date due to foreign currency translation (in millions) : Sep 27, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Reacquired rights $ 273.2 $ (39.0 ) $ 234.2 Licensing agreements 13.4 (1.1 ) 12.3 Customer loyalty program 2.7 (0.6 ) 2.1 Total acquired finite-lived intangible assets $ 289.3 $ (40.7 ) $ 248.6 Amortization expense for these finite-lived intangible assets for the year ended September 27, 2015 was $41.0 million and is estimated to be approximately $44 million each year for the next five years and approximately $29 million thereafter. The $815.6 million of goodwill represents the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including store partners in the region that have strong relationships with these customers, the existing geographic retail and online presence, and the expected geographic presence in new channels . The goodwill was allocated to the China/Asia Pacific segment and is not deductible for income tax purposes. Due to foreign currency translation, the balance of goodwill related to the acquisition declined $85.1 million to $730.5 million as of September 27, 2015 . As a part of this acquisition, we acquired a significant number of operating leases, including $7.5 million of favorable lease assets, which are included in prepaid expenses and other current assets and other long-term assets, and $15.5 million of unfavorable lease liabilities, which are included in accrued liabilities and other long-term liabilities on the consolidated balance sheets. The fair values of these assets and liabilities were determined based on market terms for similar leases as of the date of the acquisition, and will be amortized on a straight-line basis as rent expense, or a reduction of rent expense, respectively, in cost of sales including occupancy costs on the consolidated statements of earnings over the remaining terms of the leases, for which the weighted-average period was 9.4 years as of the October 31, 2014 acquisition date. We recorded a net reduction of rent expense of $0.8 million for the year ended September 27, 2015 , in connection with the leases acquired. Additionally, we acquired a number of build-to-suit lease arrangements that are accounted for as financing leases. Starbucks Japan is the deemed owner of buildings under build-to-suit lease accounting requirements since Starbucks Japan has significant involvement with the respective lessors and does not qualify for sales recognition under sale-leaseback accounting guidance. Accordingly, we have recorded the acquired buildings in property, plant and equipment, and the assumed lease financing obligations, representing the related future minimum lease payments, in other long-term liabilities, with the current portion recorded in accrued occupancy costs within accrued liabilities on the consolidated balance sheets. These financing obligations will be amortized based on the terms of the related lease agreements. The table below summarizes our estimated minimum future rental payments under the acquired non-cancelable operating leases and lease financing arrangements as of September 27, 2015 (in millions): Operating Leases Lease Financing Arrangements Year 1 $ 83.7 $ 2.8 Year 2 66.5 2.8 Year 3 49.0 2.8 Year 4 37.5 2.8 Year 5 30.3 2.7 Thereafter 129.4 24.8 Total minimum lease payments $ 396.4 $ 38.7 The fair value of the noncontrolling interest in Starbucks Japan was estimated by applying the market approach. Specifically, the fair value was determined based on the purchase price we expected to pay for the remaining 21% noncontrolling interest, which was comprised of a set market price and a premium above the market price. The market price premium is a customary business practice for public tender offer transactions in Japan, so we believe this is what a market participant would pay and should be included in the fair value determination. As a result of this acquisition, we remeasured the carrying value of our preexisting 39.5% equity method investment to fair value, which resulted in a pre-tax gain of $390.6 million that was presented separately as gain resulting from acquisition of joint venture within other income and expenses on the consolidated statements of earnings. The fair value of $577.0 million was calculated using an average of the income and market approach. The income approach fair value measurement was based on significant inputs that are not observable in the market and thus represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions used in estimating future cash flows included projected revenue growth and operating expenses, as well as the selection of an appropriate discount rate. Estimates of revenue growth and operating expenses were based on internal projections and considered the historical performance of stores, local market economics and the business environment impacting the stores' performance. The discount rate applied was based on Starbucks Japan's weighted-average cost of capital and included a company-specific risk premium. The market approach fair value measurement was based on the implied fair value of Starbucks Japan using the purchase price of Sazaby's 39.5% ownership interest and the expected purchase price of the 21% remaining noncontrolling interest. We began consolidating Starbucks Japan's results of operations and cash flows into our consolidated financial statements beginning after October 31, 2014 . For the year ended September 27, 2015 , Starbucks Japan's net revenues and net earnings included in our consolidated statements of earnings were $1.1 billion and $108.5 million , respectively. The following table provides the supplemental pro forma revenue and net earnings of the combined entity had the acquisition date of Starbucks Japan been the first day of our first quarter of fiscal 2014 rather than during our first quarter of fiscal 2015 (in millions) : Pro Forma (unaudited) Year Ended Sep 27, 2015 Sep 28, 2014 Revenue $ 19,254.5 $ 17,646.4 Net earnings attributable to Starbucks (1) 2,380.9 2,449.9 (1) The pro forma net earnings attributable to Starbucks for fiscal 2014 includes the acquisition-related gain of $390.6 million , and transaction and integration costs of $13.6 million for the year ended September 28, 2014 . The amounts in the supplemental pro forma earnings for the periods presented above fully eliminate intercompany transactions, apply our accounting policies and reflect adjustments for additional occupancy costs, depreciation and amortization that would have been charged assuming the same fair value adjustments to leases, property, plant and equipment and acquired intangibles had been applied on September 30, 2013. These pro forma results are unaudited and are not necessarily indicative of results of operations that would have occurred had the acquisition actually occurred in the prior year period or indicative of the results of operations for any future period. We initiated the second tender offer step on November 10, 2014 to acquire the remaining 21% ownership interest held by the public shareholders and option holders of Starbucks Japan's common stock, with the objective of acquiring all of the remaining outstanding shares including outstanding stock options. At the close of the second tender offer period on December 22, 2014, we funded the second tender offer step to acquire an additional 14.7% ownership interest for ¥31 billion in cash, or $258 million with Japanese yen converted into U.S. dollars at a reference conversion rate of 120.39 JPY to USD. However, we did not complete the second tender offer nor obtain control of these shares until the settlement date of December 29, 2014, which was the first day of our second quarter of fiscal 2015. Subsequent to the completion of the second tender offer step, we commenced a cash-out procedure under Japanese law (the "Cash-out") to acquire all remaining shares of Starbucks Japan (an approximate 6.3% interest). On March 26, 2015 , we obtained control of these shares resulting in 100% ownership of Starbucks Japan. The purchase price for the Cash-out was ¥13.5 billion , or $109 million . During the third quarter of fiscal 2015, we settled ¥9.6 billion , or $78 million , of the purchase price in cash, with Japanese yen converted into U.S. dollars at a reference conversion rate of 123.87 JPY to USD. During the fourth quarter of fiscal 2015, we settled ¥3.2 billion , or $26 million , of the purchase price in cash, with Japanese yen converted into U.S. dollars at a reference conversion rate of 120.72 JPY to USD. The remaining ¥674 million ( $6 million ) was recorded in accrued liabilities on our consolidated balance sheets and represents cash that was unclaimed by minority shareholders as of September 27, 2015 . There are no legal restrictions on the remaining unclaimed balance. For the first quarter of fiscal 2015, net earnings attributable to noncontrolling interests in our consolidated statement of earnings related to Starbucks Japan reflects the 21% of minority shareholders’ interests that we did not own as of the end of the first quarter of fiscal 2015. For the second quarter of fiscal 2015, net earnings attributable to noncontrolling interests in our consolidated statement of earnings related to Starbucks Japan reflects the approximate 6.3% of minority shareholders’ interests that we did not obtain control of until March 26, 2015. The following table shows the effects of the change in Starbucks ownership interest in Starbucks Japan on Starbucks equity: Year Ended Sep 27, 2015 Sep 28, 2014 Net earnings attributable to Starbucks $ 2,757.4 $ 2,068.1 Transfers (to)/from the noncontrolling interest: Increase/(decrease) in additional paid-in capital for purchase of interest in subsidiary 1.7 — Change from net earnings attributable to Starbucks and transfers (to)/from noncontrolling interest $ 2,759.1 $ 2,068.1 During the year ended September 27, 2015 , we incurred approximately $11.9 million of acquisition-related costs, such as regulatory, legal, and advisory fees, which we have recorded within unallocated corporate general and administrative expenses. Fiscal 2014 During the fourth quarter of fiscal 2014, we sold our Australian company-operated retail store assets and operations to the Withers Group, converting these operations to a fully licensed market, for a total of $15.9 million . This transaction resulted in a pre-tax gain of $2.4 million , which was included in net interest income and other on our consolidated statements of earnings. On an after-tax basis, this transaction resulted in a loss that was not material to our financial statements. Fiscal 2013 During the fourth quarter of fiscal 2013, we sold our 82% interest in Starbucks Coffee Chile S.A. to our joint venture partner Alsea, S.A.B. de C.V., converting this market to a 100% licensed market, for a total purchase price of $68.6 million , which includes final working capital adjustments. This transaction resulted in a gain of $45.9 million , which was included in net interest income and other on our consolidated statements of earnings. In the third quarter of fiscal 2013, we acquired 100% ownership of a coffee farm in Costa Rica for $8.1 million in cash. The fair value of the net assets acquired on the acquisition date primarily comprised property, plant and equipment. On December 31, 2012 , we acquired 100% of the outstanding shares of Teavana Holdings, Inc. ("Teavana"), a specialty retailer of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise, to elevate our tea offerings as well as expand our domestic and global tea footprint . We acquired Teavana for $615.8 million in cash. Of the total cash paid, $12.2 million was excluded from the purchase price allocation below as it represented contingent consideration receivable, all of which has been settled. At closing, we also repaid $35.2 million for long-term debt outstanding on Teavana's balance sheet, which was recognized separately from the business combination. The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date (in millions) : Fair Value at Dec 31, 2012 Cash and cash equivalents $ 47.0 Inventories 21.3 Property, plant and equipment 59.7 Other intangible assets 120.8 Goodwill 467.5 Other current and noncurrent assets 19.8 Current liabilities (36.0 ) Deferred income taxes (noncurrent) (54.3 ) Long-term debt (35.2 ) Other long-term liabilities (7.0 ) Total consideration $ 603.6 The assets acquired and liabilities assumed are reported within All Other Segments. Other current and noncurrent assets acquired primarily include prepaid expenses, trade receivables, and deferred tax assets. In addition, we assumed various current liabilities primarily consisting of accounts payable, accrued payroll-related liabilities and other accrued operating expenses. The intangible assets acquired as part of the transaction include the Teavana trade name, tea blends and non-compete agreements. The Teavana trade name was valued at $105.5 million and determined to have an indefinite life, based on our expectation that the brand will be used indefinitely and has no contractual limitations. The intangible asset related to the tea blends was valued at $13.0 million and will be amortized on a straight-line basis over a period of 10 years , and the intangible asset related to the non-compete agreements was valued at $2.3 million and will be amortized on a straight-line basis over a period of 3 years . The $467.5 million of goodwill represents the intangible assets that do not qualify for separate recognition, primarily including Teavana's established global store presence in high traffic mall locations and other high-sales-volume retail venues, Teavana's global customer base, and Teavana's "Heaven of tea" retail experience in which store employees engage and educate customers about the ritual and enjoyment of tea . The goodwill was allocated to All Other Segments and is not deductible for income tax purposes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 27, 2015 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business We purchase and roast high-quality coffees that we sell, along with handcrafted coffee and tea beverages and a variety of fresh food items, through our company-operated stores. We also sell a variety of coffee and tea products and license our trademarks through other channels such as licensed stores, grocery and national foodservice accounts. In this 10-K, Starbucks Corporation (together with its subsidiaries) is referred to as "Starbucks," the "Company," "we," "us" or "our." We have four reportable operating segments: 1) Americas, which is inclusive of the U.S., Canada, and Latin America; 2) China/Asia Pacific ("CAP"); 3) Europe, Middle East, and Africa ("EMEA") and 4) Channel Development. We also have several non-reportable operating segments, including Teavana, Seattle's Best Coffee, Evolution Fresh, and our Digital Ventures business, as well as certain developing businesses such as the Starbucks Reserve ® Roastery & Tasting Room, which are combined and referred to as All Other Segments. Unallocated corporate operating expenses, which pertain primarily to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment, are presented as a reconciling item between total segment operating results and consolidated financial results. Additional details on the nature of our business and our reportable operating segments are included in Note 16 , Segment Reporting, of these Consolidated Financial Statements. Principles of Consolidation Our consolidated financial statements reflect the financial position and operating results of Starbucks, including wholly-owned subsidiaries and investees that we control. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. Investments in entities in which we do not have the ability to exercise significant influence are accounted for under the cost method. Intercompany transactions and balances have been eliminated. Fiscal Year End Our fiscal year ends on the Sunday closest to September 30. Fiscal years 2015 , 2014 and 2013 included 52 weeks. Estimates and Assumptions Preparing financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include, but are not limited to, estimates for inventory reserves, asset and goodwill impairments, assumptions underlying self-insurance reserves, income from unredeemed stored value cards, stock-based compensation forfeiture rates, future asset retirement obligations, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions. Cash and Cash Equivalents We consider all highly liquid instruments with maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in our company-operated stores that generally settle within two to five days, to be cash equivalents. We maintain cash and cash equivalent balances with financial institutions that exceed federally-insured limits. We have not experienced any losses related to these balances and we believe credit risk to be minimal. Our cash management system provides for the funding of all major bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks are in excess of the cash balances at certain banks, which creates book overdrafts. Book overdrafts are presented as a current liability in accrued liabilities on our consolidated balance sheets. Investments Available-for-sale Securities Our short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Available-for-sale securities with remaining maturities of less than one year and those identified by management at the time of purchase to be used to fund operations within one year are classified as short-term. All other available-for-sale securities are classified as long-term. We evaluate our available-for-sale securities for other than temporary impairment on a quarterly basis. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the issuer, and whether we have the intent to sell or will more likely than not be required to sell before the securities' anticipated recovery, which may be at maturity. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis. Trading Securities We also have a trading securities portfolio, which is comprised of marketable equity mutual funds and equity exchange-traded funds. Trading securities are recorded at fair value with unrealized holding gains and losses recorded in net interest income and other on our consolidated statements of earnings. Our trading securities portfolio approximates a portion of our liability under our Management Deferred Compensation Plan ("MDCP"), which is included in accrued compensation and related costs, within accrued liabilities on our consolidated balance sheets. Changes in our MDCP liability are recorded in general and administrative expenses on our consolidated statements of earnings. Equity and Cost Method Investments We evaluate our equity and cost method investments for impairment annually and when facts and circumstances indicate that the carrying value of such investments may not be recoverable. We review several factors to determine whether the loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the investee, and whether we have the intent to sell or will more likely than not be required to sell before the investment’s anticipated recovery. If a decline in fair value is determined to be other than temporary, an impairment charge is recorded in net earnings. Fair Value Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following: Level 1: The carrying value of cash and cash equivalents approximates fair value because of the short-term nature of these instruments. For trading and U.S. government treasury securities and commodity futures contracts, we use quoted prices in active markets for identical assets to determine fair value. Level 2: When quoted prices in active markets for identical assets are not available, we determine the fair value of our available-for-sale securities and our over-the-counter forward contracts, collars, and swaps based upon factors such as the quoted market price of similar assets or a discounted cash flow model using readily observable market data, which may include interest rate curves and forward and spot prices for currencies and commodities, depending on the nature of the investment. The fair value of our long-term debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities. Level 3: We determine the fair value of our auction rate securities using an internally-developed valuation model, using inputs that include interest rate curves, credit and liquidity spreads, and effective maturity. Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, equity and cost method investments, and other assets. We determine the fair value of these items using Level 3 inputs, as described in the related sections below. Derivative Instruments We manage our exposure to various risks within our consolidated financial statements according to a market price risk management policy. Under this policy, we may engage in transactions involving various derivative instruments to hedge interest rates, commodity prices and foreign currency denominated revenue streams, inventory purchases, assets and liabilities, and investments in certain foreign operations. We record all derivatives on our consolidated balance sheets at fair value. We generally do not offset derivative assets and liabilities in our consolidated balance sheets or enter into derivative instruments with maturities longer than three years . Refer to Note 3 , Derivative Financial Instruments, for further discussion of our derivative instruments. We do not enter into derivative instruments for trading purposes. We use various types of derivative instruments including forward contracts, commodity futures contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date, and at a predetermined rate or price. A collar is a strategy that uses a combination of a purchased call option and a sold put option with equal premiums to hedge a portion of anticipated cash flows, or to limit the range of possible gains or losses on an underlying asset or liability to a specific range. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the derivative's gain or loss is reported as a component of other comprehensive income ("OCI") and recorded in accumulated other comprehensive income ("AOCI") on our consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings. To the extent that the change in the fair value of the contract corresponds to the change in the value of the anticipated transaction using forward rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the contract represents the ineffective portion, which is immediately recorded in net interest income and other on our consolidated statements of earnings. Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge by matching the terms of the contract to the underlying transaction. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items, which is discussed further at Note 3 , Derivative Financial Instruments. Once established, cash flow hedges generally remain designated as such until the hedge item impacts net earnings, or the anticipated transaction is no longer likely to occur. For dedesignated cash flow hedges or for transactions that are no longer likely to occur, the related accumulated derivative gains or losses are recognized in net interest income and other or interest expense on our consolidated statements of earnings based on the nature of the underlying transaction. Net Investment Hedges For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is reported as a component of OCI and recorded in AOCI. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. To the extent that the change in the fair value of the forward contract corresponds to the change in value of the anticipated transactions using spot rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the forward contract represents the ineffective portion, which is immediately recognized in net interest income and other on our consolidated statements of earnings. Derivatives Not Designated As Hedging Instruments We also enter into certain foreign currency forward contracts, commodity futures contracts, collars and swaps that are not designated as hedging instruments for accounting purposes. The change in the fair value of these contracts is immediately recognized in net interest income and other on our consolidated statements of earnings. Normal Purchase Normal Sale We enter into fixed-price and price-to-be-fixed green coffee purchase commitments, which are described further at Note 5 , Inventories. For both fixed-price and price-to-be-fixed purchase commitments, we expect to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on our balance sheets. Receivables, net of Allowance for Doubtful Accounts Our receivables are mainly comprised of receivables for product and equipment sales to and royalties from our licensees, as well as receivables from our CPG and foodservice business customers. Our allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method. As of September 27, 2015 and September 28, 2014 , the allowance for doubtful accounts was $10.8 million and $6.7 million , respectively. Inventories Inventories are stated at the lower of cost (primarily moving average cost) or market. We record inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. As of September 27, 2015 and September 28, 2014 , inventory reserves were $33.8 million and $31.2 million , respectively. Property, Plant and Equipment Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years . For leases with renewal periods at our option, we generally use the original lease term, excluding renewal option periods, to determine estimated useful lives. If failure to exercise a renewal option imposes an economic penalty to us, we may determine at the inception of the lease that renewal is reasonably assured and include the renewal option period in the determination of the appropriate estimated useful lives. The portion of depreciation expense related to production and distribution facilities is included in cost of sales including occupancy costs on our consolidated statements of earnings. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in net earnings. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. We evaluate property, plant and equipment for impairment when facts and circumstances indicate that the carrying values of such assets may not be recoverable. When evaluating for impairment, we first compare the carrying value of the asset to the asset’s estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset's estimated fair value and recognize an impairment charge when the asset’s carrying value exceeds its estimated fair value. The fair value of the asset is estimated using a discounted cash flow model based on forecasted future revenues and operating costs, using internal projections. Property, plant and equipment assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For company-operated store assets, the impairment test is performed at the individual store asset group level. We recognized net disposition charges of $12.5 million , $14.7 million , and $17.4 million and net impairment charges of $25.8 million , $19.0 million , and $12.7 million in fiscal 2015 , 2014 , and 2013 , respectively. The nature of the underlying asset that is impaired or disposed of will determine the operating expense line on which the related impact is recorded on our consolidated statements of earnings. For assets within our retail operations, net impairment and disposition charges are recorded in store operating expenses. For all other assets, these charges are recorded in cost of sales including occupancy costs, other operating expenses, or general and administrative expenses. Goodwill We evaluate goodwill for impairment annually during our third fiscal quarter, or more frequently if an event occurs or circumstances change, such as material deterioration in performance or a significant number of store closures, that would indicate that impairment may exist. When evaluating goodwill for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. For certain reporting units, where deemed appropriate, we may also utilize a market approach for estimating fair value. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. As part of our ongoing operations, we may close certain stores within a reporting unit containing goodwill due to underperformance of the store or inability to renew our lease, among other reasons. We may abandon certain assets associated with a closed store, including leasehold improvements and other non-transferable assets. When a portion of a reporting unit that constitutes a business is to be disposed of, goodwill associated with the business is included in the carrying amount of the business in determining any loss on disposal. Our evaluation of whether the portion of a reporting unit being disposed of constitutes a business occurs on the date of abandonment. Although an operating store meets the accounting definition of a business prior to abandonment, it does not constitute a business on the closure date because the remaining assets on that date do not constitute an integrated set of assets that are capable of being managed for the purpose of providing a return to investors. As a result, when closing individual stores, we do not include goodwill in the calculation of any loss on disposal of the related assets. As noted above, if store closures are indicative of potential impairment of goodwill at the reporting unit level, we perform an evaluation of our reporting unit goodwill when such closures occur. There were no material goodwill impairment charges recorded during fiscal 2015 , 2014 , and 2013 . Other Intangible Assets Other intangible assets consist primarily of finite-lived intangible assets, which mainly consist of acquired and reacquired rights, trade secrets, licensing agreements, contract-based patents and copyrights, are amortized over their estimated useful lives, and are tested for impairment using a similar methodology to our property, plant and equipment, as described above. Indefinite-lived intangibles, which consist primarily of trade names and trademarks, are tested for impairment annually during the third fiscal quarter, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. When evaluating other intangible assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we do not perform the qualitative assessment, or if we determine that it is not more likely than not that the fair value of the intangible asset group exceeds its carrying amount, we calculate the estimated fair value of the intangible asset group. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using an income approach, such as a relief-from-royalty model. If the carrying amount of the intangible asset group exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. In addition, we continuously monitor and may revise our intangible asset useful lives if and when facts and circumstances change. There were no other intangible asset impairment charges recorded during fiscal 2015 , 2014 , and 2013 . Insurance Reserves We use a combination of insurance and self-insurance mechanisms, including a wholly-owned captive insurance entity and participation in a reinsurance treaty, to provide for the potential liabilities for certain risks, including workers’ compensation, healthcare benefits, general liability, property insurance, and director and officers’ liability insurance. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering historical claims experience, demographics, exposure and severity factors, and other actuarial assumptions. Revenue Recognition Consolidated revenues are presented net of intercompany eliminations for wholly-owned subsidiaries and investees controlled by us and for product sales to and royalty and other fees from licensees accounted for under the equity method. Additionally, consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives, including coupon redemptions and rebates. Company-operated Store Revenues Company-operated store revenues are recognized when payment is tendered at the point of sale. Company-operated store revenues are reported net of sales, use or other transaction taxes that are collected from customers and remitted to taxing authorities. Licensed Store Revenues Licensed store revenues consist of product and equipment sales to licensees, as well as royalties and other fees paid by licensees to use the Starbucks brand. Sales of coffee, tea, food and related products are generally recognized upon shipment to licensees, depending on contract terms. Shipping charges billed to licensees are also recognized as revenue, and the related shipping costs are included in cost of sales including occupancy costs on our consolidated statements of earnings. Initial nonrefundable development fees for licensed stores are recognized upon substantial performance of services for new market business development activities, such as initial business, real estate and store development planning, as well as providing operational materials and functional training courses for opening new licensed retail markets. Additional store licensing fees are recognized when new licensed stores are opened. Royalty revenues based upon a percentage of reported sales, and other continuing fees, such as marketing and service fees, are recognized on a monthly basis when earned. CPG, Foodservice and Other Revenues CPG, foodservice and other revenues primarily include sales of packaged coffee and tea as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores, sales to our national foodservice accounts, and revenues from sales of products to and license fee revenues from manufacturers that produce and market Starbucks-, Seattle’s Best Coffee- and Tazo-branded products through licensing agreements. Sales of coffee, tea, ready-to-drink beverages and related products to grocery and warehouse club stores are generally recognized when received by the customer or distributor, depending on contract terms. Revenues are recorded net of sales discounts given to customers for trade promotions and other incentives and for sales return allowances, which are determined based on historical patterns. Revenues from sales of products to manufacturers that produce and market Starbucks-, Seattle’s Best Coffee- and Tazo-branded products through licensing agreements are generally recognized when the product is received by the manufacturer or distributor. License fee revenues from manufacturers are based on a percentage of sales and are recognized on a monthly basis when earned. National foodservice account revenues are recognized, when the product is received by the customer or distributor. Sales to customers through CPG channels and national foodservice accounts, including sales to national distributors, are recognized net of certain fees paid to the customer. We characterize these fees as a reduction of revenue unless we are able to identify a sufficiently separable benefit from the customer's purchase of our products such that we could have entered into an exchange transaction with a party other than the customer in order to receive such benefit, and we can reasonably estimate the fair value of such benefit. Stored Value Cards Stored value cards, primarily Starbucks Cards, can be loaded at our company-operated and most licensed store locations, online at StarbucksStore.com or via mobile devices held by our customers, and at certain other third party locations, such as grocery stores. When an amount is loaded onto a stored value card at any of these locations, we recognize a corresponding liability for the full amount loaded onto the card, which is recorded within stored value card liability on our consolidated balance sheets. Stored value cards can be redeemed at company-operated and most licensed stores, as well as online. When a stored value card is redeemed at a company-operated store or online, we recognize revenue by reducing the stored value card liability. When a stored value card is redeemed at a licensed store location, we reduce the corresponding stored value card liability and cash, which is reimbursed to the licensee. There are no expiration dates on our stored value cards, and we do not charge service fees that cause a decrement to customer balances. While we will continue to honor all stored value cards presented for payment, management may determine the likelihood of redemption, based on historical experience, is deemed to be remote for certain cards due to long periods of inactivity. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, unredeemed card balances may then be recognized as breakage income, which is included in net interest income and other on our consolidated statements of earnings. In fiscal 2015 , 2014 , and 2013 , we recognized breakage income of $39.3 million , $38.3 million , and $33.0 million , respectively. Loyalty Program Starbucks has a loyalty program called My Starbucks Rewards ® ("MSR"). Customers in the U.S., Canada, and certain other countries who register their Starbucks Card are automatically enrolled in that program. They earn loyalty points ("Stars") with each purchase at participating Starbucks ® , Teavana ® , and Evolution Fresh™ stores, as well as on certain packaged coffee products purchased in select Starbucks ® stores, online, and through CPG channels. After accumulating a certain number of Stars, the customer earns a reward that can be redeemed for free product that, regardless of where the related Stars were earned within that country, will be honored at company-operated stores and certain participating licensed store locations in that same country. We defer revenue associated with the estimated selling price of Stars earned by our program members towards free product as each Star is earned, and a corresponding liability is established within stored value card liability on our consolidated balance sheets. The estimated selling price of each Star earned is based on the estimated value of the product for which the reward is expected to be redeemed, net of Stars we do not expect to be redeemed, based on historical redemption patterns. Fully earned rewards generally expire if unredeemed after approximately 30 days. Stars generally expire if inactive for a period of one year. When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related loyalty program liability. Marketing & Advertising Our annual marketing expenses include many components, one of which is advertising costs. We expense most advertising costs as they are incurred, except for certain production costs that are expensed the first time the advertising takes place. Marketing expenses totaled $351.5 million , $315.5 million and $306.8 million in fiscal 2015 , 2014 , and 2013 , respectively. Included in these costs were advertising expenses, which totaled $227.9 million , $198.9 million and $205.8 million in fiscal 2015 , 2014 , and 2013 , respectively. Store Preopening Expenses Costs incurred in connection with the start-up and promotion of new store openings are expensed as incurred. Leases Operating Leases We lease retail stores, roasting, distribution and warehouse facilities, and office space for corporate administrative purposes under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, lease premiums, rent escalation clauses and/or contingent rent provisions. We recognize amortization of lease incentives, premiums and minimum rent expenses on a straight-line basis beginning on the date of initial possession, which is generally when we enter the space and begin to make improvements in preparation for intended use. For tenant improvement allowances and rent holidays, we record a deferred rent liability within accrued liabilities, or other long-term liabilities, on our consolidated balance sheets and amortize the deferred rent over the terms of the leases as reductions to rent expense in cost of sales including occupancy costs on our consolidated statements of earnings. For premiums paid upfront to enter a lease agreement, we record a prepaid rent asset in prepaid expenses and other current assets on our consolidated balance sheets and amortize the deferred rent over the terms of the leases as additional rent expense in cost of sales including occupancy costs on our consolidated statements of earnings. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial possession, we record minimum rent expense on a straight-line basis over the terms of the leases in cost of sales including occupancy costs on our consolidated statements of earnings. Certain leases provide for contingent rent, which is determined as a percentage of gross sales in excess of specified levels. We record a contingent rent liability in accrued occupancy costs within accrued liabilities on our consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when we determine that achieving the specified levels during the fiscal year is probable. When ceasing operations of company-operated stores under operating leases, in cases where the lease contract specifies a term |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 27, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rates Depending on market conditions, we enter into interest rate swap agreements to hedge the variability in cash flows due to changes in the benchmark interest rate related to anticipated debt issuances. These agreements are cash settled at the time of the pricing of the related debt. The effective portion of the derivative's gain or loss is recorded in accumulated other comprehensive income ("AOCI") and is subsequently reclassified to interest expense over the life of the related debt. During the first quarter of fiscal 2015 , we entered into forward-starting interest rate swap agreements with an aggregate notional amount of $250.0 million related to the $500 million of 7-year 2.700% Senior Notes (the "2022 notes") due in June 2022 issued in the third quarter of fiscal 2015. During the third quarter of fiscal 2015, we entered into forward-starting interest rate swap agreements with an aggregate notional amount of $250.0 million related to the $350 million of 30-year 4.300% Senior Notes (the "2045 notes") due in June 2045 issued in the third quarter of fiscal 2015. We cash settled these swap agreements at the time of the pricing of the 2022 and the 2045 notes, effectively locking in the benchmark interest rate in effect at the time the swap agreements were initiated. In July 2015 , we redeemed our $550 million of 6.250% Senior Notes (the "2017 notes") originally scheduled to mature in August 2017. In connection with the redemption in the fourth quarter of fiscal 2015, we reclassified $2.0 million from accumulated other comprehensive income to interest expense on our consolidated statements of earnings related to remaining unrecognized losses from interest rate contracts entered into in conjunction with the 2017 notes and designated as cash flow hedges. In the fourth quarter of fiscal 2015 , we entered into forward-starting interest rate swap agreements with an aggregate notional amount of $125 million related to an anticipated debt issuance in fiscal 2016. Refer to Note 9 , Debt, for details of the components of our long-term debt. Foreign Currency To reduce cash flow volatility from foreign currency fluctuations, we enter into forward and swap contracts to hedge portions of cash flows of anticipated revenue streams and inventory purchases in currencies other than the entity's functional currency. The effective portion of the derivative's gain or loss is recorded in AOCI and is subsequently reclassified to revenue or cost of sales including occupancy costs when the hedged exposure affects net earnings. In connection with the acquisition of Starbucks Japan that is discussed in Note 2 , Acquisitions and Divestitures, we entered into cross-currency swap contracts during the first and third quarters of fiscal 2015 to hedge the foreign currency transaction risk of certain yen-denominated intercompany loans with a total notional value of ¥86.5 billion , or approximately $717 million as of September 27, 2015 . Gains and losses from these swaps offset the changes in value of interest and principal payments as a result of changes in foreign exchange rates, which are also recorded in net interest income and other on the consolidated statements of earnings. We recognize the difference between the U.S. dollar interest payments received from the swap counterparty and the U.S. dollar equivalent of the Japanese yen interest payments made to the swap counterparty in interest income and other, net or interest expense on our consolidated statements of earnings. This difference varies over time and is driven by a number of market factors, including relevant interest rate differentials and foreign exchange rates. These swaps have been designated as cash flow hedges and mature in September 2016 and November 2024 at the same time as the related loans. There are no credit-risk-related contingent features associated with these swaps, although we may hold or post collateral depending upon the gain or loss position of the swap agreements. We also enter into forward contracts to hedge the foreign currency exposure of our net investment in certain foreign operations. The effective portion of the derivative's gain or loss is recorded in AOCI and will be subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated. As a result of our acquisition of Starbucks Japan, we reclassified the pretax cumulative net gains in AOCI of $7.2 million related to our net investment derivative instruments used to hedge our preexisting 39.5% equity method investment in Starbucks Japan into earnings, which was included in the gain resulting from acquisition of joint venture line item on the consolidated statements of earnings. These gains offset the cumulative translation adjustment loss balance associated with our preexisting investment included in the calculation of the remeasurement gain, which is described further in Note 2 , Acquisitions and Divestitures. To mitigate the translation risk of certain balance sheet items, we enter into foreign currency swap contracts that are not designated as hedging instruments. Gains and losses from these derivatives are largely offset by the financial impact of translating foreign currency denominated payables and receivables; both are recorded in net interest income and other on our consolidated statements of earnings. Commodities Depending on market conditions, we enter into coffee futures contracts and collars (the combination of a purchased call option and a sold put option) to hedge a portion of anticipated cash flows under our price-to-be-fixed green coffee contracts, which are described further in Note 5 , Inventories. The effective portion of the derivative's gain or loss is recorded in AOCI and is subsequently reclassified to cost of sales including occupancy costs when the hedged exposure affects net earnings. To mitigate the price uncertainty of a portion of our future purchases of dairy products and diesel fuel, we enter into swaps, futures and collars that are not designated as hedging instruments. Gains and losses from these derivatives are recorded in net interest income and other and help offset price fluctuations on our dairy purchases and the financial impact of diesel fuel fluctuations on our shipping costs, which are included in cost of sales including occupancy costs on our consolidated statements of earnings. Gains and losses on derivative contracts designated as hedging instruments included in AOCI and expected to be reclassified into earnings within 12 months, net of tax ( in millions ): Net Gains/(Losses) Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Contract Remaining Maturity Sep 27, Sep 28, Cash Flow Hedges: Interest rates $ 30.1 $ 36.4 $ 3.5 4 Cross-currency swaps (27.8 ) — — 111 Foreign currency - other 29.0 10.6 19.2 35 Coffee (5.7 ) (0.7 ) (2.5 ) 12 Net Investment Hedges: Foreign currency 1.3 3.2 — 0 Pretax gains and losses on derivative contracts designated as hedging instruments recognized in other comprehensive income ("OCI") and reclassifications from AOCI to earnings ( in millions ): Year Ended Gains/(Losses) Recognized in Gains/(Losses) Reclassified from AOCI to Earnings Sep 27, Sep 28, Sep 27, Sep 28, Cash Flow Hedges: Interest rates $ (6.8 ) $ 0.5 $ 3.2 $ 5.0 Cross-currency swaps 11.4 — 46.2 — Foreign currency - other 52.0 24.0 26.1 8.0 Coffee (9.0 ) (0.4 ) (3.5 ) (13.1 ) Net Investment Hedges: Foreign currency 4.3 25.5 7.2 — Pretax gains and losses on derivative contracts not designated as hedging instruments recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Sep 27, 2015 Sep 28, 2014 Foreign currency $ 27.1 $ 1.7 Coffee (0.2 ) — Dairy (3.8 ) 12.6 Diesel fuel (9.0 ) (1.0 ) Notional amounts of outstanding derivative contracts (in millions) : Sep 27, 2015 Sep 28, 2014 Interest rates $ 125 $ — Cross-currency swaps 717 — Foreign currency - other 577 542 Coffee 38 45 Dairy 43 24 Diesel fuel 14 17 The fair values of our derivative assets and liabilities are included in Note 4 , Fair Value Measurements, and additional disclosures related to cash flow hedge gains and losses included in accumulated other comprehensive income, as well as subsequent reclassifications to earnings, are included in Note 11 , Equity. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions): Fair Value Measurements at Reporting Date Using Balance at 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 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 10.2 — 10.2 — Foreign government obligations 2.0 — 2.0 — State and local government obligations 3.3 — 3.3 — Total available-for-sale securities 15.5 — 15.5 — Trading securities 65.8 65.8 — — Total short-term investments 81.3 65.8 15.5 — Prepaid expenses and other current assets: Derivative assets 50.8 — 50.8 — Long-term investments: Available-for-sale securities Agency obligations 8.6 — 8.6 — Corporate debt securities 121.8 — 121.8 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 18.5 — 18.5 — U.S. government treasury securities 104.8 104.8 — — State and local government obligations 9.7 — 9.7 — Mortgage and other asset-backed securities 43.2 — 43.2 — Total long-term investments 312.5 104.8 201.8 5.9 Other long-term assets: Derivative assets 54.7 — 54.7 — Total assets $ 2,029.4 $ 1,700.7 $ 322.8 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 19.2 $ 3.6 $ 15.6 $ — Other long-term liabilities: Derivative liabilities 14.5 — 14.5 — Total liabilities $ 33.7 $ 3.6 $ 30.1 $ — Fair Value Measurements at Reporting Date Using Balance at Quoted Prices Significant Significant Assets: Cash and cash equivalents $ 1,708.4 $ 1,708.4 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 4.9 — 4.9 — Foreign government obligations 33.7 — 33.7 — U.S. government treasury securities 10.9 10.9 — — State and local government obligations 12.7 — 12.7 — Certificates of deposit 1.0 — 1.0 — Total available-for-sale securities 63.2 10.9 52.3 — Trading securities 72.2 72.2 — — Total short-term investments 135.4 83.1 52.3 — Prepaid expenses and other current assets: Derivative assets 28.7 0.9 27.8 — Long-term investments: Available-for-sale securities Agency obligations 8.9 — 8.9 — Corporate debt securities 130.9 — 130.9 — Auction rate securities 13.8 — — 13.8 Foreign government obligations 17.4 — 17.4 — U.S. government treasury securities 94.8 94.8 — — State and local government obligations 6.7 — 6.7 — Mortgage and other asset-backed securities 45.9 — 45.9 — Total long-term investments 318.4 94.8 209.8 13.8 Other long-term assets: Derivative assets 18.0 — 18.0 — Total assets $ 2,208.9 $ 1,887.2 $ 307.9 $ 13.8 Liabilities: Accrued liabilities: Derivative liabilities $ 2.4 $ 0.4 $ 2.0 $ — There were no material transfers between levels and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists. Available-for-sale Securities Long-term investments generally mature within 4 years . Proceeds from sales of available-for-sale securities were $600.6 million , $1.5 billion , and $60.2 million for fiscal years 2015 , 2014 and 2013 , respectively. The increase in fiscal 2014 was due to the liquidation of a significant portion of our offshore investment portfolio in the fourth quarter of fiscal 2014 in anticipation of funding the acquisition of Starbucks Japan. Realized gains and losses on sales and maturities of available-for-sale securities were not material for fiscal years 2015 , 2014 , and 2013 . Gross unrealized holding gains and losses on available-for-sale securities were not material as of September 27, 2015 and September 28, 2014 . Trading Securities Trading securities include equity mutual funds and exchange-traded funds. Our trading securities portfolio approximates a portion of our liability under our Management Deferred Compensation Plan ("MDCP"), a defined contribution plan. Our MDCP liability was $98.3 million and $106.4 million as of September 27, 2015 and September 28, 2014 , respectively, which is included in accrued compensation and related costs within accrued liabilities on the consolidated balance sheets. The changes in net unrealized holding gains and losses in the trading securities portfolio included in earnings for fiscal years 2015 , 2014 and 2013 were a net loss of $4.5 million , and net gains of $1.2 million , and $11.7 million , respectively. Gross unrealized holding gains and losses on trading securities were not material as of September 27, 2015 and September 28, 2014 . Derivative Assets and Liabilities Derivative assets and liabilities include foreign currency forward contracts, commodity futures contracts, collars and swaps, which are described further in Note 3 , Derivative Financial Instruments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, equity and cost method investments, and other assets. These assets are measured at fair value if determined to be impaired. Impairment of property, plant, and equipment is included at Note 1 , Summary of Significant Accounting Policies. During fiscal 2015 and 2014 , there were no other material fair value adjustments. Fair Value of Other Financial Instruments The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 9 , Debt. |
Inventories
Inventories | 12 Months Ended |
Sep. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (in millions) Sep 27, 2015 Sep 28, 2014 Coffee: Unroasted $ 529.4 $ 432.3 Roasted 279.7 238.9 Other merchandise held for sale 318.3 265.7 Packaging and other supplies 179.0 154.0 Total $ 1,306.4 $ 1,090.9 Other merchandise held for sale includes, among other items, serveware and tea. Inventory levels vary due to seasonality, commodity market supply and price fluctuations. As of September 27, 2015 , we had committed to purchasing green coffee totaling $819 million under fixed-price contracts and an estimated $266 million under price-to-be-fixed contracts. As of September 27, 2015 , approximately $38 million of our price-to-be-fixed contracts were effectively fixed through the use of futures contracts. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date, and therefore the price, at which the base "C" coffee commodity price component will be fixed has not yet been established. For these types of contracts, either Starbucks or the seller has the option to "fix" the base "C" coffee commodity price prior to the delivery date. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on relationships established with our suppliers in the past, the risk of non-delivery on such purchase commitments is remote. |
Equity and Cost Investments
Equity and Cost Investments | 12 Months Ended |
Sep. 27, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity and Cost Investments | Equity and Cost Investments (in millions) Sep 27, Sep 28, Equity method investments $ 306.4 $ 469.3 Cost method investments 45.6 45.6 Total $ 352.0 $ 514.9 Equity Method Investments As of September 27, 2015 , we had a 50% ownership interest in each of the following international equity method investees: President Starbucks Coffee (Shanghai); Starbucks Coffee Korea Co., Ltd.; President Starbucks Coffee Corporation (Taiwan) Company Limited; and Tata Starbucks Limited (India). In addition, we had a 49% ownership interest in Starbucks Coffee España, S.L. ("Starbucks Spain"). These international entities operate licensed Starbucks ® retail stores. We also license the rights to produce and distribute Starbucks-branded products to our 50% owned joint venture, The North American Coffee Partnership with the Pepsi-Cola Company, which develops and distributes bottled Starbucks ® beverages, including Frappuccino ® coffee drinks, Starbucks Doubleshot ® espresso drinks, Starbucks Refreshers ® beverages, and Starbucks Discoveries Iced Café Favorites ® . On September 23, 2014 , we entered into a two-step tender offer bid agreement to acquire the remaining 60.5% interest in Starbucks Japan, at the time a 39.5% owned equity method investment. Upon the completion of the first tender offer step in the first quarter of fiscal 2015, we obtained a controlling interest in Starbucks Japan and began consolidating its results instead of applying equity method accounting. See further discussion at Note 2 , Acquisitions and Divestitures. In the fourth quarter of fiscal 2014, we sold our 50% equity method ownership interest in our Malaysian joint venture, Berjaya Starbucks Coffee Company Sdn. Bhd., to our joint venture partner, Berjaya Food Berhad, for a total purchase price of $88.0 million . This transaction resulted in a gain of $67.8 million , which was included in net interest income and other on our consolidated statements of earnings. In the fourth quarter of fiscal 2013, we acquired a 49% equity method ownership interest in Starbucks Spain from our licensee partner Sigla S.A. (Grupo Vips) for approximately $33 million in cash. Our share of income and losses from our equity method investments is included in income from equity investees on our consolidated statements of earnings. Also included in this line item is our proportionate share of gross profit resulting from coffee and other product sales to, and royalty and license fee revenues generated from, equity investees. Revenues generated from these related parties were $153.4 million , $219.2 million , and $205.1 million in fiscal years 2015 , 2014 , and 2013 , respectively. Related costs of sales were $94.5 million , $121.2 million , and $115.4 million in fiscal years 2015 , 2014 , and 2013 , respectively. As of September 27, 2015 and September 28, 2014 , there were $36.7 million and $54.9 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues. Summarized combined financial information of our equity method investees, which represent 100% of the investees’ financial information ( in millions ): Financial Position as of Sep 27, Sep 28, Current assets $ 402.8 $ 701.3 Noncurrent assets 578.8 873.9 Current liabilities 490.0 615.6 Noncurrent liabilities 38.7 79.1 Results of Operations for Fiscal Year Ended Sep 27, Sep 28, Sep 29, Net revenues $ 2,688.0 $ 3,461.3 $ 3,018.7 Operating income 426.4 467.7 434.8 Net earnings 392.1 382.6 358.0 Cost Method Investments As of September 27, 2015 , we had $19 million invested in equity interests of entities that develop and operate Starbucks ® licensed stores in several global markets. We have the ability to acquire additional interests in some of these cost method investees at certain intervals. Depending on our total percentage ownership interest and our ability to exercise significant influence over financial and operating policies, additional investments may require a retroactive application of the equity method of accounting. We also had a $25 million investment in the preferred stock of Square, Inc. During the fourth quarter of fiscal 2013, we sold our 18% interest in Starbucks Coffee Argentina S.R.L. to our joint venture partner Alsea, S.A.B. de C.V., for a total purchase price of $4.4 million . This transaction resulted in a loss of $1.0 million , which was included in net interest income and other on our consolidated statements of earnings. During the second quarter of fiscal 2013, we sold our 18% interest in Cafe Sirena S. de R.L. de CV (a Mexican limited liability company), to our controlling joint venture partner, SC de Mexico, S.A. de CV, owned by Alsea, S.A.B. de C.V., for a total purchase price of $50.3 million , which included final working capital adjustments. This transaction resulted in a gain of $35.2 million , which was included in net interest income and other on our consolidated statements of earnings. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Sep. 27, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information (in millions) Property, Plant and Equipment, net Sep 27, 2015 Sep 28, 2014 Land $ 46.6 $ 46.7 Buildings 411.5 278.1 Leasehold improvements 5,409.6 4,858.4 Store equipment 1,707.5 1,493.3 Roasting equipment 542.4 410.9 Furniture, fixtures and other 1,281.7 1,078.1 Work in progress 242.5 415.6 Property, plant and equipment, gross 9,641.8 8,581.1 Accumulated depreciation (5,553.5 ) (5,062.1 ) Property, plant and equipment, net $ 4,088.3 $ 3,519.0 Accrued Liabilities Sep 27, 2015 Sep 28, 2014 Accrued compensation and related costs $ 522.3 $ 437.9 Accrued occupancy costs 137.2 119.8 Accrued taxes 259.0 272.0 Accrued dividends payable 297.0 239.8 Other 545.2 444.9 Total accrued liabilities $ 1,760.7 $ 1,514.4 |
Other Intangible Assets and Goo
Other Intangible Assets and Goodwill | 12 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets and Goodwill | Other Intangible Assets and Goodwill Indefinite-Lived Intangible Assets (in millions) Sep 27, 2015 Sep 28, 2014 Trade names, trademarks and patents $ 202.8 $ 197.5 Other indefinite-lived intangible assets 15.1 15.1 Total indefinite-lived intangible assets $ 217.9 $ 212.6 Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2 , Acquisitions and Divestitures. Goodwill Changes in the carrying amount of goodwill by reportable operating segment (in millions) : Americas China/Asia Pacific EMEA Channel All Other Segments Total Balance at September 29, 2013 Goodwill prior to impairment $ 230.2 $ 75.1 $ 62.2 $ 23.8 $ 480.2 $ 871.5 Accumulated impairment charges (8.6 ) — — — — (8.6 ) Goodwill $ 221.6 $ 75.1 $ 62.2 $ 23.8 $ 480.2 $ 862.9 Impairment — — — — (0.8 ) (0.8 ) Other (1) (2.6 ) (0.2 ) (3.1 ) — — (5.9 ) Balance at September 28, 2014 Goodwill prior to impairment $ 227.6 $ 74.9 $ 59.1 $ 23.8 $ 480.2 $ 865.6 Accumulated impairment charges (8.6 ) — — — (0.8 ) (9.4 ) Goodwill $ 219.0 $ 74.9 $ 59.1 $ 23.8 $ 479.4 $ 856.2 Acquisition/(divestiture) (2.5 ) 815.6 — — — 813.1 Impairment — — — — (0.5 ) (0.5 ) Other (1) (5.3 ) (86.4 ) (1.7 ) — — (93.4 ) Balance at September 27, 2015 Goodwill prior to impairment $ 219.8 $ 804.1 $ 57.4 $ 23.8 $ 480.2 $ 1,585.3 Accumulated impairment charges (8.6 ) — — — (1.3 ) (9.9 ) Goodwill $ 211.2 $ 804.1 $ 57.4 $ 23.8 $ 478.9 $ 1,575.4 (1) Other is primarily comprised of changes in the goodwill balance as a result of foreign currency translation. Finite-Lived Intangible Assets Sep 27, 2015 Sep 28, 2014 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired and reacquired rights $ 308.6 $ (52.5 ) $ 256.1 $ 36.8 $ (10.1 ) $ 26.7 Acquired trade secrets and processes 27.6 (8.2 ) 19.4 27.6 (5.4 ) 22.2 Licensing agreements 13.4 (1.1 ) 12.3 — — — Trade names, trademarks and patents 24.5 (13.0 ) 11.5 21.6 (11.6 ) 10.0 Other finite-lived intangible assets 6.5 (3.3 ) 3.2 3.8 (1.8 ) 2.0 Total finite-lived intangible assets $ 380.6 $ (78.1 ) $ 302.5 $ 89.8 $ (28.9 ) $ 60.9 Amortization expense for finite-lived intangible assets was $50.0 million , $8.7 million , and $7.7 million during fiscal 2015 , 2014 , and 2013 , respectively. Estimated future amortization expense as of September 27, 2015 ( in millions ): Fiscal Year Ending 2016 $ 53.2 2017 52.9 2018 51.5 2019 51.2 2020 51.1 Thereafter 42.6 Total estimated future amortization expense $ 302.5 Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2 , Acquisitions and Divestitures. |
Debt
Debt | 12 Months Ended |
Sep. 27, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility and Commercial Paper Program Our $750 million unsecured, revolving credit facility with various banks, of which $150 million may be used for issuances of letters of credit, is available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases. During the second quarter of fiscal 2015, we extended the duration of our credit facility, which is now set to mature on January 21, 2020 , and amended certain facility fees and borrowing rates. Starbucks has the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $750 million . Borrowings under the credit facility will bear interest at a variable rate based on LIBOR, and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the credit facility), in each case plus an applicable margin. The applicable margin is based on the better of (i) the Company's long-term credit ratings assigned by Moody's and Standard & Poor's rating agencies and (ii) the Company's fixed charge coverage ratio, pursuant to a pricing grid set forth in the credit facility. The current applicable margin is 0.565% for Eurocurrency Rate Loans and 0.00% for Base Rate Loans. The credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. As of September 27, 2015, we were in compliance with all applicable covenants. No amounts were outstanding under our credit facility as of September 27, 2015 . Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $1 billion , with individual maturities that may vary, but not exceed 397 days from the date of issue. Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under our credit facility discussed above. As of September 27, 2015 , availability under our commercial paper program was approximately $750 million (which represents the full committed credit facility amount, as the amount of outstanding letters of credit was not material as of September 27, 2015 ). The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including share repurchases, business expansion, payment of cash dividends on our common stock or the financing of possible acquisitions. In the fourth quarter of fiscal 2015, we issued and subsequently repaid commercial paper borrowings of $93 million for general corporate purposes. We had no other borrowings under our commercial paper program during fiscal 2015 or fiscal 2014 , and there were no amounts outstanding as of September 27, 2015 or September 28, 2014 . Long-term Debt In July 2015 , we redeemed our $550 million of 6.250% Senior Notes (the "2017 notes") originally scheduled to mature in August 2017. The redemption resulted in a charge of $61.1 million , which is presented separately as loss on extinguishment of debt within other income and expenses on our consolidated statements of earnings. This loss primarily relates to the optional redemption payment as outlined in the 2017 notes indenture, as well as non-cash expenses related to the previously capitalized original issuance costs and accelerated amortization of the unamortized discount. In connection with the redemption, we also reclassified $2.0 million from accumulated other comprehensive income to interest expense on our consolidated statements of earnings related to remaining unrecognized losses from interest rate contracts entered into in conjunction with the 2017 notes and designated as cash flow hedges. In June 2015 , we issued additional long-term debt in an underwritten registered public offering, which consisted of $500 million of 7-year 2.700% Senior Notes (the "2022 notes") due June 2022 , and $350 million of 30-year 4.300% Senior Notes (the "2045 notes") due June 2045 . Interest on the 2022 and 2045 notes is payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015 . In December 2013 , we issued $400 million of 3-year 0.875% Senior Notes (the "2016 notes") due December 2016 , and $350 million of 5-year 2.000% Senior Notes (the "2018 notes") due December 2018 , in an underwritten registered public offering. Interest on the 2016 and 2018 notes is payable semi-annually on June 5 and December 5 of each year. In September 2013 , we issued $750 million of 10-year 3.85% Senior Notes (the "2023 notes") due October 2023 , in an underwritten registered public offering. Interest on the 2023 notes is payable semi-annually on April 1 and October 1 of each year. Components of long-term debt including the associated interest rates and related fair values ( in millions, except interest rates) : Sep 27, 2015 Sep 28, 2014 Stated Interest Rate Effective Interest Rate (1) Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2016 notes $ 400.0 $ 400 $ 400.0 $ 400 0.875 % 0.941 % 2017 notes — — 550.0 625 6.250 % — % 2018 notes 350.0 354 350.0 353 2.000 % 2.012 % 2022 notes 500.0 503 — — 2.700 % 2.819 % 2023 notes 750.0 790 750.0 786 3.850 % 2.860 % 2045 notes 350.0 355 — — 4.300 % 4.348 % Total 2,350.0 2,402 2,050.0 2,164 Aggregate unamortized discount 2.5 1.7 Total $ 2,347.5 $ 2,048.3 (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. The indentures under which the above notes were issued also require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of September 27, 2015, we were in compliance with each of these covenants. The following table summarizes our long-term debt maturities as of September 27, 2015 ( in millions ): Fiscal Year Total 2016 $ — 2017 400.0 2018 — 2019 350.0 2020 — Thereafter 1,600.0 Total $ 2,350.0 Interest Expense Interest expense, net of interest capitalized, was $70.5 million , $64.1 million , and $28.1 million in fiscal 2015 , 2014 and 2013 , respectively. In fiscal 2015 , 2014 , and 2013 , $3.6 million , $6.2 million , and $10.4 million , respectively, of interest was capitalized for asset construction projects. |
Leases
Leases | 12 Months Ended |
Sep. 27, 2015 | |
Leases [Abstract] | |
Leases | Leases Rent expense under operating lease agreements (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Minimum rent $ 1,026.3 $ 907.4 $ 838.3 Contingent rent 111.5 66.8 56.4 Total $ 1,137.8 $ 974.2 $ 894.7 Minimum future rental payments under non-cancelable operating leases and lease financing arrangements as of September 27, 2015 (in millions) : Fiscal Year Ending Operating Leases Lease Financing Arrangements 2016 $ 1,032.4 $ 3.2 2017 892.5 3.2 2018 739.8 3.2 2019 624.0 3.2 2020 548.9 3.2 Thereafter 1,831.9 31.1 Total minimum lease payments $ 5,669.5 $ 47.1 We have subleases related to certain of our operating leases. During fiscal 2015 , 2014 , and 2013 , we recognized sublease income of $11.9 million , $13.3 million , and $9.3 million , respectively. Additionally, as of September 27, 2015 , the gross carrying value of assets related to build-to-suit lease arrangements accounted for as financing leases was $66.8 million with associated accumulated depreciation of $2.5 million . We had no built-to-suit lease arrangements as of September 28, 2014 . |
Equity
Equity | 12 Months Ended |
Sep. 27, 2015 | |
Equity [Abstract] | |
Equity | Equity As discussed in Note 1 , Summary of Significant Accounting Policies, on April 9, 2015, we effected a two -for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All share data presented in this note has been retroactively adjusted to reflect this stock split. In addition to 2.4 billion shares of authorized common stock with $0.001 par value per share, we have authorized 7.5 million shares of preferred stock, none of which was outstanding at September 27, 2015 . Included in additional paid-in capital in our consolidated statements of equity as of September 27, 2015 and September 28, 2014 is $39.4 million related to the increase in value of our share of the net assets of Starbucks Japan at the time of its initial public stock offering in fiscal 2002. Also included in additional paid-in capital as of September 27, 2015 is $1.7 million , which represents the difference between the carrying value of the remaining outstanding noncontrolling interests in Starbucks Japan prior to obtaining full ownership and the cash paid to acquire the noncontrolling interests. Refer to Note 2 , Acquisitions and Divestitures, for further discussion. We repurchased 29.0 million shares of common stock at a total cost of $1.4 billion , and 21.0 million shares at a total cost of $769.8 million for the year s ended September 27, 2015 and September 28, 2014 , respectively. On July 23, 2015 , we announced that our Board of Directors approved an increase of 50 million shares to our ongoing share repurchase program. As of September 27, 2015 , 52.7 million shares remained available for repurchase under current authorizations. During fiscal years 2015 and 2014 , our Board of Directors declared the following dividends ( in millions, except per share amounts) : Dividend Per Share Record date Total Amount Payment Date Fiscal Year 2015 First quarter $0.16 February 5, 2015 $240.1 February 20, 2015 Second quarter $0.16 May 7, 2015 $240.1 May 22, 2015 Third quarter $0.16 August 6, 2015 $239.0 August 21, 2015 Fourth quarter $0.20 November 12, 2015 $297.0 November 27, 2015 Fiscal Year 2014: First quarter $0.13 February 6, 2014 $196.4 February 21, 2014 Second quarter $0.13 May 8, 2014 $195.5 May 23, 2014 Third quarter $0.13 August 7, 2014 $195.3 August 22, 2014 Fourth quarter $0.16 November 13, 2014 $239.8 November 28, 2014 Comprehensive Income Comprehensive income includes all changes in equity during the period, except those resulting from transactions with our shareholders. Comprehensive income is comprised of net earnings and other comprehensive income. Accumulated other comprehensive income reported on our consolidated balance sheets consists of foreign currency translation adjustments and the unrealized gains and losses, net of applicable taxes, on available-for-sale securities and on derivative instruments designated and qualifying as cash flow and net investment hedges. Changes in accumulated other comprehensive income ("AOCI") by component, for year ended September 27, 2015 , net of tax: (in millions) Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment Total September 27, 2015 Net gains/(losses) in AOCI, beginning of period $ (0.4 ) $ 46.3 $ 3.2 $ (23.8 ) $ 25.3 Net gains/(losses) recognized in OCI before reclassifications 0.9 30.8 2.7 (185.6 ) (151.2 ) Net (gains)/losses reclassified from AOCI to earnings (0.6 ) (51.5 ) (4.6 ) 14.3 (42.4 ) Other comprehensive income/(loss) attributable to Starbucks 0.3 (20.7 ) (1.9 ) (171.3 ) (193.6 ) Purchase of noncontrolling interest — — — (31.1 ) (31.1 ) Net gains/(losses) in AOCI, end of period $ (0.1 ) $ 25.6 $ 1.3 $ (226.2 ) $ (199.4 ) (in millions) Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment Total September 28, 2014 Net gains/(losses) in AOCI, beginning of period $ (0.5 ) $ 26.8 $ (12.9 ) $ 53.6 $ 67.0 Net gains/(losses) recognized in OCI before reclassifications 1.0 16.3 16.1 (77.4 ) (44.0 ) Net (gains)/losses reclassified from AOCI to earnings (0.9 ) 3.2 — — 2.3 Other comprehensive income/(loss) attributable to Starbucks 0.1 19.5 16.1 (77.4 ) (41.7 ) Net gains/(losses) in AOCI, end of period $ (0.4 ) $ 46.3 $ 3.2 $ (23.8 ) $ 25.3 Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions) : AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Gains/(losses) on cash flow hedges Interest rate hedges $ 3.2 $ 5.0 Interest expense Cross-currency swaps 46.2 — Interest income and other, net Foreign currency hedges 14.0 5.1 Revenue Foreign currency/coffee hedges 8.6 (10.0 ) Cost of sales including occupancy costs Gains/(losses) on net investment hedges (1) 7.2 — Gain resulting from acquisition of joint venture Translation adjustment (2) Starbucks Japan (7.2 ) — Gain resulting from acquisition of joint venture Other (7.1 ) — Interest income and other, net 64.9 0.1 Total before tax (23.1 ) (3.3 ) Tax (expense)/benefit $ 41.8 $ (3.2 ) Net of tax (1) Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting 39.5% equity method investment in Starbucks Japan. (2) Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign business. |
Employee Stock and Benefit Plan
Employee Stock and Benefit Plans | 12 Months Ended |
Sep. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock and Benefit Plans | Employee Stock and Benefit Plans We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units ("RSUs"), or stock appreciation rights to employees, non-employee directors and consultants. We issue new shares of common stock upon exercise of stock options and the vesting of RSUs. We also have an employee stock purchase plan ("ESPP"). As discussed in Note 1 , Summary of Significant Accounting Policies, on April 9, 2015, we effected a two -for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All share and per-share data presented in this note has been retroactively adjusted to reflect this stock split. As of September 27, 2015 , there were 96.3 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 14.3 million shares available for issuance under our ESPP. Stock-based compensation expense recognized in the consolidated financial statements (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Options $ 37.8 $ 41.8 $ 37.1 RSUs 172.0 141.4 105.2 Total stock-based compensation expense recognized in the consolidated statements of earnings $ 209.8 $ 183.2 $ 142.3 Total related tax benefit $ 72.3 $ 63.4 $ 49.8 Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets $ 1.9 $ 1.9 $ 1.8 Stock Option Plans Stock options to purchase our common stock are granted at the fair value of the stock on the grant date. The majority of options become exercisable in four equal installments beginning a year from the grant date and generally expire 10 years from the grant date. Options granted to non-employee directors generally vest over one to three years . Nearly all outstanding stock options are non-qualified stock options. The fair value of stock option awards was estimated at the grant date with the following weighted average assumptions for fiscal years 2015 , 2014 , and 2013 : Employee Stock Options Fiscal Year Ended 2015 2014 2013 Expected term (in years) 4.2 4.5 4.8 Expected stock price volatility 22.3 % 26.8 % 34.0 % Risk-free interest rate 1.1 % 1.1 % 0.7 % Expected dividend yield 1.6 % 1.3 % 1.6 % Weighted average grant price $ 39.89 $ 40.12 $ 25.62 Estimated fair value per option granted $ 6.58 $ 8.36 $ 6.44 The expected term of the options represents the estimated period of time until exercise, and is based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Expected stock price volatility is based on a combination of historical volatility of our stock and the one-year implied volatility of Starbucks traded options, for the related vesting periods. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The dividend yield assumption is based on our anticipated cash dividend payouts. The amounts shown above for the estimated fair value per option granted are before the estimated effect of forfeitures, which reduce the amount of expense recorded in the consolidated statements of earnings. Stock option transactions for the year ended September 27, 2015 (in millions, except per share and contractual life amounts) : Shares Weighted Weighted Aggregate Outstanding, September 28, 2014 39.6 $ 18.93 5.8 $ 754 Granted 6.4 39.89 Exercised (11.3 ) 14.99 Expired/forfeited (1.1 ) 32.38 Outstanding, September 27, 2015 33.6 23.81 6.0 1,150 Exercisable, September 27, 2015 21.1 16.75 4.7 872 Vested and expected to vest, September 27, 2015 32.4 23.29 5.9 1,125 The aggregate intrinsic value in the table above, which is the amount by which the market value of the underlying stock exceeded the exercise price of outstanding options, is before applicable income taxes and represents the amount optionees would have realized if all in-the-money options had been exercised on the last business day of the period indicated. As of September 27, 2015 , total unrecognized stock-based compensation expense, net of estimated forfeitures, related to nonvested options was approximately $32 million , before income taxes, and is expected to be recognized over a weighted average period of approximately 2.6 years . The total intrinsic value of options exercised was $358 million , $258 million , and $539 million during fiscal years 2015 , 2014 , and 2013 , respectively. The total fair value of options vested was $36 million , $44 million , and $56 million during fiscal years 2015 , 2014 , and 2013 , respectively. RSUs We have both time-vested and performance-based RSUs. Time-vested RSUs are awarded to eligible employees and non-employee directors and entitle the grantee to receive shares of common stock at the end of a vesting period, subject solely to the employee’s continuing employment or the non-employee director's continuing service. The majority of RSUs vest in two equal annual installments beginning a year from the grant date. Our performance-based RSUs are awarded to eligible employees and entitle the grantee to receive shares of common stock if we achieve specified performance goals during the performance period and the grantee remains employed during the subsequent vesting period. RSU transactions for the year ended September 27, 2015 (in millions, except per share and contractual life amounts) : Number Weighted Weighted Aggregate Nonvested, September 28, 2014 10.8 $ 31.17 1.0 $ 407 Granted 6.7 38.56 Vested (5.1 ) 26.73 Forfeited/canceled (1.7 ) 36.10 Nonvested, September 27, 2015 10.7 36.35 1.0 620 For fiscal 2014 and 2013 , the weighted average fair value per RSU granted was $40.07 and $25.12 , respectively. As of September 27, 2015 , total unrecognized stock-based compensation expense related to nonvested RSUs, net of estimated forfeitures, was approximately $126 million , before income taxes, and is expected to be recognized over a weighted average period of approximately 2.3 years . The total fair value of RSUs vested was $137 million , $103 million and $104 million during fiscal years 2015 , 2014 , and 2013 , respectively. ESPP Our ESPP allows eligible employees to contribute up to 10% of their base earnings toward the quarterly purchase of our common stock, subject to an annual maximum dollar amount. The purchase price is 95% of the fair market value of the stock on the last business day of the quarterly offering period. The number of shares issued under our ESPP was 0.5 million in fiscal 2015 . Deferred Compensation Plan We have a Deferred Compensation Plan for Non-Employee Directors under which non-employee directors may, for any fiscal year, irrevocably elect to defer receipt of shares of common stock the director would have received upon vesting of restricted stock units. The number of deferred shares outstanding related to deferrals made under this plan is not material. Defined Contribution Plans We maintain voluntary defined contribution plans, both qualified and non-qualified, covering eligible employees as defined in the plan documents. Participating employees may elect to defer and contribute a portion of their eligible compensation to the plans up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. Our matching contributions to all U.S. and non-U.S. plans were $70.9 million , $73.0 million , and $54.7 million in fiscal years 2015 , 2014 , and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of earnings/(loss) before income taxes (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total Litigation charge All Other United States $ 2,837.2 $ 2,572.4 $ (674.0 ) $ (2,784.1 ) $ 2,110.1 Foreign 1,065.8 587.3 444.1 — 444.1 Total earnings/(loss) before income taxes $ 3,903.0 $ 3,159.7 $ (229.9 ) $ (2,784.1 ) $ 2,554.2 Provision/(benefit) for income taxes (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total Litigation charge All Other Current taxes: U.S. federal $ 801.0 $ 822.7 $ 616.6 $ — $ 616.6 U.S. state and local 150.1 132.9 93.8 — 93.8 Foreign 172.2 128.8 95.9 — 95.9 Total current taxes 1,123.3 1,084.4 806.3 — 806.3 Deferred taxes: U.S. federal 56.5 12.0 (898.8 ) (922.3 ) 23.5 U.S. state and local 4.0 (4.9 ) (144.0 ) (148.7 ) 4.7 Foreign (40.1 ) 0.5 (2.2 ) — (2.2 ) Total deferred taxes 20.4 7.6 (1,045.0 ) (1,071.0 ) 26.0 Total income tax expense/(benefit) $ 1,143.7 $ 1,092.0 $ (238.7 ) $ (1,071.0 ) $ 832.3 Reconciliation of the statutory U.S. federal income tax rate with our effective income tax rate: Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total Litigation charge All Other Statutory rate 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.8 2.6 15.8 3.5 2.4 Benefits and taxes related to foreign operations (2.1 ) (1.9 ) 37.5 — (3.4 ) Domestic production activity deduction (2.2 ) (0.7 ) 8.1 — (0.7 ) Domestic tax credits (0.2 ) (0.2 ) 2.8 — (0.3 ) Charitable contributions (0.3 ) (0.4 ) 3.9 — (0.3 ) Gain resulting from acquisition of joint venture (3.7 ) — — — — Other, net — 0.2 0.7 — (0.1 ) Effective tax rate 29.3 % 34.6 % 103.8 % 38.5 % 32.6 % Our effective tax rate in fiscal 2013 was significantly affected by the litigation charge we recorded as a result of the conclusion of our arbitration with Kraft. In order to provide a more meaningful analysis of tax expense and the effective tax rate, the tables above present separate reconciliations of the effect of the litigation charge. The deferred tax asset related to the litigation charge is estimated to be recovered over a period of 15 years ; the deferred tax asset has been classified between current and non-current consistent with the expected recovery period for income tax reporting purposes. U.S. income and foreign withholding taxes have not been provided on approximately $2.8 billion of cumulative undistributed earnings of foreign subsidiaries and equity investees. We intend to reinvest these earnings for the foreseeable future. If these amounts were distributed to the U.S., in the form of dividends or otherwise, we would be subject to additional U.S. income taxes, which could be material. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because of the complexities with its hypothetical calculation, and the amount of liability, if any, is dependent on circumstances existing if and when remittance occurs. Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions): Sep 27, 2015 Sep 28, 2014 Deferred tax assets: Property, plant and equipment $ 121.4 $ 78.5 Accrued occupancy costs 98.4 58.8 Accrued compensation and related costs 81.7 75.3 Other accrued liabilities 49.0 27.6 Asset retirement obligation asset 29.0 18.6 Stored value card liability 99.1 63.4 Asset impairments 26.2 49.5 Tax credits 20.8 20.3 Stock-based compensation 135.5 131.5 Net operating losses 93.4 104.4 Litigation charge 931.0 1,002.0 Other 104.5 77.0 Total $ 1,790.0 $ 1,706.9 Valuation allowance (143.7 ) (166.8 ) Total deferred tax asset, net of valuation allowance $ 1,646.3 $ 1,540.1 Deferred tax liabilities: Property, plant and equipment (217.5 ) (148.2 ) Intangible assets and goodwill (177.3 ) (92.9 ) Other (114.1 ) (89.4 ) Total (508.9 ) (330.5 ) Net deferred tax asset $ 1,137.4 $ 1,209.6 Reported as: Current deferred income tax assets $ 381.7 $ 317.4 Long-term deferred income tax assets 828.9 903.3 Current deferred income tax liabilities (included in Accrued liabilities) (5.4 ) (4.2 ) Long-term deferred income tax liabilities (included in Other long-term liabilities) (67.8 ) (6.9 ) Net deferred tax asset $ 1,137.4 $ 1,209.6 The valuation allowance as of September 27, 2015 and September 28, 2014 is primarily related to net operating losses and other deferred tax assets of consolidated foreign subsidiaries. The net change in the total valuation allowance was a decrease of $23.1 million and an increase of $6.3 million for fiscal 2015 and 2014 , respectively. As of September 27, 2015 , we had state tax credit carryforwards of $32.0 million with an expiration date of fiscal 2024 and foreign net operating loss carryforwards of $309.5 million , the majority of which has no expiration date. Uncertain Tax Positions As of September 27, 2015 , we had $150.4 million of gross unrecognized tax benefits of which $101.7 million , if recognized, would affect our effective tax rate. We recognized expense of $0.7 million , expense of $5.9 million , and a benefit of $0.8 million of interest and penalties in income tax expense, prior to the benefit of the federal tax deduction, for fiscal 2015 , 2014 and 2013 , respectively. As of September 27, 2015 and September 28, 2014 , we had accrued interest and penalties of $11.3 million and $10.6 million , respectively, before the benefit of the federal tax deduction, included within other long-term liabilities on our consolidated balance sheets. The following table summarizes the activity related to our unrecognized tax benefits (in millions) : Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Beginning balance $ 112.7 $ 88.8 $ 75.3 Increase related to prior year tax positions 7.9 1.4 8.9 Decrease related to prior year tax positions (0.9 ) (2.2 ) (9.3 ) Increase related to current year tax positions 32.0 26.7 19.3 Decrease related to current year tax positions (0.6 ) (1.9 ) (0.4 ) Decreases related to settlements with taxing authorities (0.7 ) (0.1 ) — Decreases related to lapsing of statute of limitations — — (5.0 ) Ending balance $ 150.4 $ 112.7 $ 88.8 We are currently under examination, or may be subject to examination, by various jurisdictions inside and outside the U.S. as well as U.S. state and municipal taxing jurisdictions for fiscal years 2006 through 2014. We are no longer subject to U.S. federal or state examination for years prior to fiscal year 2010, with the exception of one state and one city. We are no longer subject to examination in any material international markets prior to 2006. There is a reasonable possibility that $31.2 million of the currently remaining unrecognized tax benefits may be recognized by the end of fiscal 2016 as a result of a lapse of the statute of limitations and expected consent from taxing authorities. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share As discussed in Note 1 , Summary of Significant Accounting Policies, on April 9, 2015, we effected a two -for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All share and per-share data presented in this note has been retroactively adjusted to reflect this stock split. Calculation of net earnings per common share ("EPS") — basic and diluted (in millions, except EPS) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Net earnings attributable to Starbucks $ 2,757.4 $ 2,068.1 $ 8.3 Weighted average common shares outstanding (for basic calculation) 1,495.9 1,506.3 1,498.5 Dilutive effect of outstanding common stock options and RSUs 17.5 20.0 26.0 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,513.4 1,526.3 1,524.5 EPS — basic $ 1.84 $ 1.37 $ 0.01 EPS — diluted $ 1.82 $ 1.35 $ 0.01 Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and non-vested) and unvested RSUs, calculated using the treasury stock method. The calculation of dilutive shares outstanding excludes out-of-the-money stock options (i.e., such options’ exercise prices were greater than the average market price of our common shares for the period) because their inclusion would have been antidilutive. We had no out-of-the-money stock options as of September 27, 2015 and September 29, 2013 , respectively. There were 5.3 million out-of-the-money stock options as of September 28, 2014 . |
Commitments And Contingencies (
Commitments And Contingencies (Notes) | 12 Months Ended |
Sep. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Legal Proceedings On November 12, 2013, the arbitrator in our arbitration with Kraft Foods Global, Inc. (now known as Kraft Foods Group, Inc.) ("Kraft") ordered Starbucks to pay Kraft $2,227.5 million in damages plus prejudgment interest and attorneys' fees. We estimated prejudgment interest, which included an accrual through the estimated payment date, and attorneys' fees to be approximately $556.6 million . As a result, we recorded a litigation charge of $2,784.1 million in our fiscal 2013 operating results. In the first quarter of fiscal 2014, Starbucks paid all amounts due to Kraft under the arbitration, including prejudgment interest and attorneys' fees, and fully extinguished the litigation charge liability. Of the $2,784.1 million litigation charge accrued in the fourth quarter of fiscal 2013, $2,763.9 million was paid and the remainder was released as a litigation credit to reflect a reduction to our estimated prejudgment interest payable as a result of paying our obligation earlier than anticipated. Starbucks is party to various other legal proceedings arising in the ordinary course of business, including, at times, certain employment litigation cases that have been certified as class or collective actions, but is not currently a party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 27, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our chief executive officer and chief operating officer comprise the Company's Chief Operating Decision Maker function ("CODM"). Segment information is prepared on the same basis that our CODM manages the segments, evaluates financial results, and makes key operating decisions. We have four reportable operating segments: 1) Americas, inclusive of the U.S., Canada, and Latin America; 2) China/Asia Pacific ("CAP"); 3) Europe, Middle East, and Africa ("EMEA") and 4) Channel Development. Americas, CAP, and EMEA operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. Our Americas segment is our most mature business and has achieved significant scale. Certain markets within our CAP and EMEA operations are still in the early stages of development and require a more extensive support organization, relative to their current levels of revenue and operating income, than our Americas operations. The Americas and EMEA segments also include certain foodservice accounts, primarily in Canada and the U.K. Channel Development operations sell a selection of packaged coffees and single-serve products, as well as a selection of premium Tazo ® teas globally. Channel Development operations also produce and sell a variety of ready-to-drink beverages, such as Frappuccino ® coffee drinks, Starbucks Doubleshot ® espresso drinks, Starbucks Refreshers ® beverages and chilled multi-serve beverages. The U.S. foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies. Consolidated revenue mix by product type (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Beverage $ 11,115.4 58 % $ 9,458.4 58 % $ 8,674.7 58 % Food 3,085.3 16 % 2,505.2 15 % 2,189.8 15 % Packaged and single-serve coffees and teas 2,619.9 14 % 2,370.0 14 % 2,206.5 15 % Other (1) 2,342.1 12 % 2,114.2 13 % 1,795.8 12 % Total $ 19,162.7 100 % $ 16,447.8 100 % $ 14,866.8 100 % (1) "Other" primarily consists of royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and serveware, among other items. In fiscal 2014, we moved ready-to-drink beverage revenues from the "Food" category to the "Other" category and combined packaged and single-serve teas, which were previously included in the "Other" category, with packaged and single-serve coffees, which are now categorized as "Packaged and single-serve coffees and teas." Additionally, we revised our discount allocation methodology to more precisely allocate sales discounts to the various revenue product categories. None of these changes had a material impact on the composition of our revenue mix by product type. Information by geographic area ( in millions ): Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Net revenues: United States $ 14,123.7 $ 12,590.6 $ 11,389.6 Other countries 5,039.0 3,857.2 3,477.2 Total $ 19,162.7 $ 16,447.8 $ 14,866.8 Long-lived assets: United States $ 5,468.1 $ 5,135.8 $ 4,641.3 Other countries 2,625.3 1,448.4 1,404.0 Total $ 8,093.4 $ 6,584.2 $ 6,045.3 No customer accounts for 10% or more of our revenues . Revenues are shown based on the geographic location of our customers. Revenues from countries other than the U.S. consist primarily of revenues from Japan, Canada, China and the U.K., which together account for approximately 76% of net revenues from other countries for fiscal 2015 . Management evaluates the performance of its operating segments based on net revenues and operating income. The accounting policies of the operating segments are the same as those described in Note 1 , Summary of Significant Accounting Policies. Operating income represents earnings before other income and expenses and income taxes. Management does not evaluate the performance of its operating segments using asset measures. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash and cash equivalents, net property, plant and equipment, equity and cost investments, goodwill, and other intangible assets. Assets not identified by reportable operating segment below are corporate assets and are primarily comprised of cash and cash equivalents available for general corporate purposes, investments, assets of the corporate headquarters and roasting facilities, and inventory. The table below presents financial information for our reportable operating segments and All Other Segments for the years ended September 27, 2015 , September 28, 2014 , and September 29, 2013 . ( in millions ) Americas China / Asia Pacific EMEA Channel Development All Other Segments Segment Total Fiscal 2015 Total net revenues $ 13,293.4 $ 2,395.9 $ 1,216.7 $ 1,730.9 $ 525.8 $ 19,162.7 Depreciation and amortization expenses 522.3 150.7 52.0 2.7 16.3 744.0 Income from equity investees — 119.6 3.1 127.2 — 249.9 Operating income/(loss) 3,223.3 500.5 168.2 653.9 (24.8 ) 4,521.1 Total assets 2,726.7 2,230.5 749.1 87.3 1,785.3 7,578.9 Fiscal 2014 Total net revenues $ 11,980.5 $ 1,129.6 $ 1,294.8 $ 1,546.0 $ 496.9 $ 16,447.8 Depreciation and amortization expenses 469.5 46.1 59.4 1.8 15.2 592.0 Income from equity investees — 164.0 3.7 100.6 — 268.3 Operating income/(loss) 2,809.0 372.5 119.2 557.2 (26.8 ) 3,831.1 Total assets 2,521.4 939.8 663.0 84.6 825.2 5,034.0 Fiscal 2013 Total net revenues $ 11,000.8 $ 917.0 $ 1,160.0 $ 1,398.9 $ 390.1 $ 14,866.8 Depreciation and amortization expenses 429.3 33.8 55.5 1.1 11.7 531.4 Income from equity investees 2.4 152.0 0.4 96.6 — 251.4 Operating income/(loss) 2,365.2 321.2 64.2 415.5 (34.5 ) 3,131.6 Total assets 2,323.4 805.0 510.6 89.2 821.1 4,549.3 The following table reconciles total segment operating income in the table above to consolidated earnings/(loss) before income taxes (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total segment operating income $ 4,521.1 $ 3,831.1 $ 3,131.6 Unallocated corporate operating expenses (1) (920.1 ) (750.0 ) (3,457.0 ) Consolidated operating income/(loss) 3,601.0 3,081.1 (325.4 ) Gain resulting from acquisition of joint venture 390.6 — — Loss on extinguishment of debt (61.1 ) — — Interest income and other, net 43.0 142.7 123.6 Interest expense (70.5 ) (64.1 ) (28.1 ) Earnings/(loss) before income taxes $ 3,903.0 $ 3,159.7 $ (229.9 ) (1) Fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the litigation charge we recorded associated with the conclusion of our arbitration with Kraft. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Sep. 27, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited; in millions, except EPS) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Fiscal 2015: Net revenues $ 4,803.2 $ 4,563.5 $ 4,881.2 $ 4,914.8 $ 19,162.7 Operating income 915.5 777.5 938.6 969.4 3,601.0 Net earnings attributable to Starbucks 983.1 494.9 626.7 652.5 2,757.4 EPS — diluted (1) 0.65 0.33 0.41 0.43 1.82 Fiscal 2014: Net revenues $ 4,239.6 $ 3,873.8 $ 4,153.7 $ 4,180.8 $ 16,447.8 Operating income 813.5 644.1 768.5 854.9 3,081.1 Net earnings attributable to Starbucks 540.7 427.0 512.6 587.9 2,068.1 EPS — diluted (1) 0.35 0.28 0.34 0.39 1.35 (1) As discussed in Note 1 , Summary of Significant Accounting Policies, on April 9, 2015, we effected a two -for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All per-share data presented in this note has been retroactively adjusted to reflect this stock split. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 27, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to our fiscal year end, the European Commission has concluded that decisions by the tax authorities in the Netherlands with regards to the corporate income tax paid by one of our subsidiaries did not comply with European Union rules on state aid. Based on this decision, which covers a 7-year period from fiscal 2008 to fiscal 2014, we estimate the amount of assessed past taxes to be no more than €30 million , including interest, which equates to approximately $32 million with euro converted into U.S. dollars at a reference conversion rate of 1.075 EUR to USD. The exposure amount is not material and we are currently evaluating this decision, including any impact to our fiscal 2016 tax provisions. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 27, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements reflect the financial position and operating results of Starbucks, including wholly-owned subsidiaries and investees that we control. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. Investments in entities in which we do not have the ability to exercise significant influence are accounted for under the cost method. Intercompany transactions and balances have been eliminated. |
Fiscal Year End | Fiscal Year End Our fiscal year ends on the Sunday closest to September 30. Fiscal years 2015 , 2014 and 2013 included 52 weeks |
Estimates and Assumptions | Estimates and Assumptions Preparing financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include, but are not limited to, estimates for inventory reserves, asset and goodwill impairments, assumptions underlying self-insurance reserves, income from unredeemed stored value cards, stock-based compensation forfeiture rates, future asset retirement obligations, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid instruments with maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in our company-operated stores that generally settle within two to five days, to be cash equivalents. We maintain cash and cash equivalent balances with financial institutions that exceed federally-insured limits. We have not experienced any losses related to these balances and we believe credit risk to be minimal. Our cash management system provides for the funding of all major bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks are in excess of the cash balances at certain banks, which creates book overdrafts. Book overdrafts are presented as a current liability in accrued liabilities on our consolidated balance sheets. |
Investments | Investments Available-for-sale Securities Our short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Available-for-sale securities with remaining maturities of less than one year and those identified by management at the time of purchase to be used to fund operations within one year are classified as short-term. All other available-for-sale securities are classified as long-term. We evaluate our available-for-sale securities for other than temporary impairment on a quarterly basis. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the issuer, and whether we have the intent to sell or will more likely than not be required to sell before the securities' anticipated recovery, which may be at maturity. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis. Trading Securities We also have a trading securities portfolio, which is comprised of marketable equity mutual funds and equity exchange-traded funds. Trading securities are recorded at fair value with unrealized holding gains and losses recorded in net interest income and other on our consolidated statements of earnings. Our trading securities portfolio approximates a portion of our liability under our Management Deferred Compensation Plan ("MDCP"), which is included in accrued compensation and related costs, within accrued liabilities on our consolidated balance sheets. Changes in our MDCP liability are recorded in general and administrative expenses on our consolidated statements of earnings. Equity and Cost Method Investments We evaluate our equity and cost method investments for impairment annually and when facts and circumstances indicate that the carrying value of such investments may not be recoverable. We review several factors to determine whether the loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the investee, and whether we have the intent to sell or will more likely than not be required to sell before the investment’s anticipated recovery. If a decline in fair value is determined to be other than temporary, an impairment charge is recorded in net earnings. |
Fair Value | Fair Value Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following: Level 1: The carrying value of cash and cash equivalents approximates fair value because of the short-term nature of these instruments. For trading and U.S. government treasury securities and commodity futures contracts, we use quoted prices in active markets for identical assets to determine fair value. Level 2: When quoted prices in active markets for identical assets are not available, we determine the fair value of our available-for-sale securities and our over-the-counter forward contracts, collars, and swaps based upon factors such as the quoted market price of similar assets or a discounted cash flow model using readily observable market data, which may include interest rate curves and forward and spot prices for currencies and commodities, depending on the nature of the investment. The fair value of our long-term debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities. Level 3: We determine the fair value of our auction rate securities using an internally-developed valuation model, using inputs that include interest rate curves, credit and liquidity spreads, and effective maturity. Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, equity and cost method investments, and other assets. We determine the fair value of these items using Level 3 inputs, as described in the related sections below. |
Derivative Instruments | Derivative Instruments We manage our exposure to various risks within our consolidated financial statements according to a market price risk management policy. Under this policy, we may engage in transactions involving various derivative instruments to hedge interest rates, commodity prices and foreign currency denominated revenue streams, inventory purchases, assets and liabilities, and investments in certain foreign operations. We record all derivatives on our consolidated balance sheets at fair value. We generally do not offset derivative assets and liabilities in our consolidated balance sheets or enter into derivative instruments with maturities longer than three years . Refer to Note 3 , Derivative Financial Instruments, for further discussion of our derivative instruments. We do not enter into derivative instruments for trading purposes. We use various types of derivative instruments including forward contracts, commodity futures contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date, and at a predetermined rate or price. A collar is a strategy that uses a combination of a purchased call option and a sold put option with equal premiums to hedge a portion of anticipated cash flows, or to limit the range of possible gains or losses on an underlying asset or liability to a specific range. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the derivative's gain or loss is reported as a component of other comprehensive income ("OCI") and recorded in accumulated other comprehensive income ("AOCI") on our consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings. To the extent that the change in the fair value of the contract corresponds to the change in the value of the anticipated transaction using forward rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the contract represents the ineffective portion, which is immediately recorded in net interest income and other on our consolidated statements of earnings. Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge by matching the terms of the contract to the underlying transaction. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items, which is discussed further at Note 3 , Derivative Financial Instruments. Once established, cash flow hedges generally remain designated as such until the hedge item impacts net earnings, or the anticipated transaction is no longer likely to occur. For dedesignated cash flow hedges or for transactions that are no longer likely to occur, the related accumulated derivative gains or losses are recognized in net interest income and other or interest expense on our consolidated statements of earnings based on the nature of the underlying transaction. Net Investment Hedges For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is reported as a component of OCI and recorded in AOCI. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. To the extent that the change in the fair value of the forward contract corresponds to the change in value of the anticipated transactions using spot rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the forward contract represents the ineffective portion, which is immediately recognized in net interest income and other on our consolidated statements of earnings. Derivatives Not Designated As Hedging Instruments We also enter into certain foreign currency forward contracts, commodity futures contracts, collars and swaps that are not designated as hedging instruments for accounting purposes. The change in the fair value of these contracts is immediately recognized in net interest income and other on our consolidated statements of earnings. Normal Purchase Normal Sale We enter into fixed-price and price-to-be-fixed green coffee purchase commitments, which are described further at Note 5 , Inventories. For both fixed-price and price-to-be-fixed purchase commitments, we expect to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on our balance sheets. |
Receivables, net of Allowance for Doubtful Accounts | Receivables, net of Allowance for Doubtful Accounts Our receivables are mainly comprised of receivables for product and equipment sales to and royalties from our licensees, as well as receivables from our CPG and foodservice business customers. Our allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method. As of September 27, 2015 and September 28, 2014 , the allowance for doubtful accounts was $10.8 million and $6.7 million , respectively. |
Inventories | Inventories Inventories are stated at the lower of cost (primarily moving average cost) or market. We record inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. As of September 27, 2015 and September 28, 2014 , inventory reserves were $33.8 million and $31.2 million , respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years . For leases with renewal periods at our option, we generally use the original lease term, excluding renewal option periods, to determine estimated useful lives. If failure to exercise a renewal option imposes an economic penalty to us, we may determine at the inception of the lease that renewal is reasonably assured and include the renewal option period in the determination of the appropriate estimated useful lives. The portion of depreciation expense related to production and distribution facilities is included in cost of sales including occupancy costs on our consolidated statements of earnings. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in net earnings. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. We evaluate property, plant and equipment for impairment when facts and circumstances indicate that the carrying values of such assets may not be recoverable. When evaluating for impairment, we first compare the carrying value of the asset to the asset’s estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset's estimated fair value and recognize an impairment charge when the asset’s carrying value exceeds its estimated fair value. The fair value of the asset is estimated using a discounted cash flow model based on forecasted future revenues and operating costs, using internal projections. Property, plant and equipment assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For company-operated store assets, the impairment test is performed at the individual store asset group level. We recognized net disposition charges of $12.5 million , $14.7 million , and $17.4 million and net impairment charges of $25.8 million , $19.0 million , and $12.7 million in fiscal 2015 , 2014 , and 2013 , respectively. The nature of the underlying asset that is impaired or disposed of will determine the operating expense line on which the related impact is recorded on our consolidated statements of earnings. For assets within our retail operations, net impairment and disposition charges are recorded in store operating expenses. For all other assets, these charges are recorded in cost of sales including occupancy costs, other operating expenses, or general and administrative expenses. |
Goodwill | Goodwill We evaluate goodwill for impairment annually during our third fiscal quarter, or more frequently if an event occurs or circumstances change, such as material deterioration in performance or a significant number of store closures, that would indicate that impairment may exist. When evaluating goodwill for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. For certain reporting units, where deemed appropriate, we may also utilize a market approach for estimating fair value. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. As part of our ongoing operations, we may close certain stores within a reporting unit containing goodwill due to underperformance of the store or inability to renew our lease, among other reasons. We may abandon certain assets associated with a closed store, including leasehold improvements and other non-transferable assets. When a portion of a reporting unit that constitutes a business is to be disposed of, goodwill associated with the business is included in the carrying amount of the business in determining any loss on disposal. Our evaluation of whether the portion of a reporting unit being disposed of constitutes a business occurs on the date of abandonment. Although an operating store meets the accounting definition of a business prior to abandonment, it does not constitute a business on the closure date because the remaining assets on that date do not constitute an integrated set of assets that are capable of being managed for the purpose of providing a return to investors. As a result, when closing individual stores, we do not include goodwill in the calculation of any loss on disposal of the related assets. As noted above, if store closures are indicative of potential impairment of goodwill at the reporting unit level, we perform an evaluation of our reporting unit goodwill when such closures occur. There were no material goodwill impairment charges recorded during fiscal 2015 , 2014 , and 2013 . |
Other Intangible Assets | Other Intangible Assets Other intangible assets consist primarily of finite-lived intangible assets, which mainly consist of acquired and reacquired rights, trade secrets, licensing agreements, contract-based patents and copyrights, are amortized over their estimated useful lives, and are tested for impairment using a similar methodology to our property, plant and equipment, as described above. Indefinite-lived intangibles, which consist primarily of trade names and trademarks, are tested for impairment annually during the third fiscal quarter, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. When evaluating other intangible assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we do not perform the qualitative assessment, or if we determine that it is not more likely than not that the fair value of the intangible asset group exceeds its carrying amount, we calculate the estimated fair value of the intangible asset group. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using an income approach, such as a relief-from-royalty model. If the carrying amount of the intangible asset group exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. In addition, we continuously monitor and may revise our intangible asset useful lives if and when facts and circumstances change. There were no other intangible asset impairment charges recorded during fiscal 2015 , 2014 , and 2013 . |
Insurance Reserves | Insurance Reserves We use a combination of insurance and self-insurance mechanisms, including a wholly-owned captive insurance entity and participation in a reinsurance treaty, to provide for the potential liabilities for certain risks, including workers’ compensation, healthcare benefits, general liability, property insurance, and director and officers’ liability insurance. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering historical claims experience, demographics, exposure and severity factors, and other actuarial assumptions. |
Revenue Recognition | Revenue Recognition Consolidated revenues are presented net of intercompany eliminations for wholly-owned subsidiaries and investees controlled by us and for product sales to and royalty and other fees from licensees accounted for under the equity method. Additionally, consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives, including coupon redemptions and rebates. Company-operated Store Revenues Company-operated store revenues are recognized when payment is tendered at the point of sale. Company-operated store revenues are reported net of sales, use or other transaction taxes that are collected from customers and remitted to taxing authorities. Licensed Store Revenues Licensed store revenues consist of product and equipment sales to licensees, as well as royalties and other fees paid by licensees to use the Starbucks brand. Sales of coffee, tea, food and related products are generally recognized upon shipment to licensees, depending on contract terms. Shipping charges billed to licensees are also recognized as revenue, and the related shipping costs are included in cost of sales including occupancy costs on our consolidated statements of earnings. Initial nonrefundable development fees for licensed stores are recognized upon substantial performance of services for new market business development activities, such as initial business, real estate and store development planning, as well as providing operational materials and functional training courses for opening new licensed retail markets. Additional store licensing fees are recognized when new licensed stores are opened. Royalty revenues based upon a percentage of reported sales, and other continuing fees, such as marketing and service fees, are recognized on a monthly basis when earned. CPG, Foodservice and Other Revenues CPG, foodservice and other revenues primarily include sales of packaged coffee and tea as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores, sales to our national foodservice accounts, and revenues from sales of products to and license fee revenues from manufacturers that produce and market Starbucks-, Seattle’s Best Coffee- and Tazo-branded products through licensing agreements. Sales of coffee, tea, ready-to-drink beverages and related products to grocery and warehouse club stores are generally recognized when received by the customer or distributor, depending on contract terms. Revenues are recorded net of sales discounts given to customers for trade promotions and other incentives and for sales return allowances, which are determined based on historical patterns. Revenues from sales of products to manufacturers that produce and market Starbucks-, Seattle’s Best Coffee- and Tazo-branded products through licensing agreements are generally recognized when the product is received by the manufacturer or distributor. License fee revenues from manufacturers are based on a percentage of sales and are recognized on a monthly basis when earned. National foodservice account revenues are recognized, when the product is received by the customer or distributor. Sales to customers through CPG channels and national foodservice accounts, including sales to national distributors, are recognized net of certain fees paid to the customer. We characterize these fees as a reduction of revenue unless we are able to identify a sufficiently separable benefit from the customer's purchase of our products such that we could have entered into an exchange transaction with a party other than the customer in order to receive such benefit, and we can reasonably estimate the fair value of such benefit. Stored Value Cards Stored value cards, primarily Starbucks Cards, can be loaded at our company-operated and most licensed store locations, online at StarbucksStore.com or via mobile devices held by our customers, and at certain other third party locations, such as grocery stores. When an amount is loaded onto a stored value card at any of these locations, we recognize a corresponding liability for the full amount loaded onto the card, which is recorded within stored value card liability on our consolidated balance sheets. Stored value cards can be redeemed at company-operated and most licensed stores, as well as online. When a stored value card is redeemed at a company-operated store or online, we recognize revenue by reducing the stored value card liability. When a stored value card is redeemed at a licensed store location, we reduce the corresponding stored value card liability and cash, which is reimbursed to the licensee. There are no expiration dates on our stored value cards, and we do not charge service fees that cause a decrement to customer balances. While we will continue to honor all stored value cards presented for payment, management may determine the likelihood of redemption, based on historical experience, is deemed to be remote for certain cards due to long periods of inactivity. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, unredeemed card balances may then be recognized as breakage income, which is included in net interest income and other on our consolidated statements of earnings. In fiscal 2015 , 2014 , and 2013 , we recognized breakage income of $39.3 million , $38.3 million , and $33.0 million , respectively. Loyalty Program Starbucks has a loyalty program called My Starbucks Rewards ® ("MSR"). Customers in the U.S., Canada, and certain other countries who register their Starbucks Card are automatically enrolled in that program. They earn loyalty points ("Stars") with each purchase at participating Starbucks ® , Teavana ® , and Evolution Fresh™ stores, as well as on certain packaged coffee products purchased in select Starbucks ® stores, online, and through CPG channels. After accumulating a certain number of Stars, the customer earns a reward that can be redeemed for free product that, regardless of where the related Stars were earned within that country, will be honored at company-operated stores and certain participating licensed store locations in that same country. We defer revenue associated with the estimated selling price of Stars earned by our program members towards free product as each Star is earned, and a corresponding liability is established within stored value card liability on our consolidated balance sheets. The estimated selling price of each Star earned is based on the estimated value of the product for which the reward is expected to be redeemed, net of Stars we do not expect to be redeemed, based on historical redemption patterns. Fully earned rewards generally expire if unredeemed after approximately 30 days. Stars generally expire if inactive for a period of one year. When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related loyalty program liability. |
Stored Value Cards and Loyalty Program | Stored Value Cards Stored value cards, primarily Starbucks Cards, can be loaded at our company-operated and most licensed store locations, online at StarbucksStore.com or via mobile devices held by our customers, and at certain other third party locations, such as grocery stores. When an amount is loaded onto a stored value card at any of these locations, we recognize a corresponding liability for the full amount loaded onto the card, which is recorded within stored value card liability on our consolidated balance sheets. Stored value cards can be redeemed at company-operated and most licensed stores, as well as online. When a stored value card is redeemed at a company-operated store or online, we recognize revenue by reducing the stored value card liability. When a stored value card is redeemed at a licensed store location, we reduce the corresponding stored value card liability and cash, which is reimbursed to the licensee. There are no expiration dates on our stored value cards, and we do not charge service fees that cause a decrement to customer balances. While we will continue to honor all stored value cards presented for payment, management may determine the likelihood of redemption, based on historical experience, is deemed to be remote for certain cards due to long periods of inactivity. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, unredeemed card balances may then be recognized as breakage income, which is included in net interest income and other on our consolidated statements of earnings. In fiscal 2015 , 2014 , and 2013 , we recognized breakage income of $39.3 million , $38.3 million , and $33.0 million , respectively. Loyalty Program Starbucks has a loyalty program called My Starbucks Rewards ® ("MSR"). Customers in the U.S., Canada, and certain other countries who register their Starbucks Card are automatically enrolled in that program. They earn loyalty points ("Stars") with each purchase at participating Starbucks ® , Teavana ® , and Evolution Fresh™ stores, as well as on certain packaged coffee products purchased in select Starbucks ® stores, online, and through CPG channels. After accumulating a certain number of Stars, the customer earns a reward that can be redeemed for free product that, regardless of where the related Stars were earned within that country, will be honored at company-operated stores and certain participating licensed store locations in that same country. We defer revenue associated with the estimated selling price of Stars earned by our program members towards free product as each Star is earned, and a corresponding liability is established within stored value card liability on our consolidated balance sheets. The estimated selling price of each Star earned is based on the estimated value of the product for which the reward is expected to be redeemed, net of Stars we do not expect to be redeemed, based on historical redemption patterns. Fully earned rewards generally expire if unredeemed after approximately 30 days. Stars generally expire if inactive for a period of one year. When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related loyalty program liability. |
Marketing & Advertising | Marketing & Advertising Our annual marketing expenses include many components, one of which is advertising costs. We expense most advertising costs as they are incurred, except for certain production costs that are expensed the first time the advertising takes place. Marketing expenses totaled $351.5 million , $315.5 million and $306.8 million in fiscal 2015 , 2014 , and 2013 , respectively. Included in these costs were advertising expenses, which totaled $227.9 million , $198.9 million and $205.8 million in fiscal 2015 , 2014 , and 2013 , respectively. |
Store Preopening Expenses | Store Preopening Expenses Costs incurred in connection with the start-up and promotion of new store openings are expensed as incurred. |
Leases | Leases Operating Leases We lease retail stores, roasting, distribution and warehouse facilities, and office space for corporate administrative purposes under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, lease premiums, rent escalation clauses and/or contingent rent provisions. We recognize amortization of lease incentives, premiums and minimum rent expenses on a straight-line basis beginning on the date of initial possession, which is generally when we enter the space and begin to make improvements in preparation for intended use. For tenant improvement allowances and rent holidays, we record a deferred rent liability within accrued liabilities, or other long-term liabilities, on our consolidated balance sheets and amortize the deferred rent over the terms of the leases as reductions to rent expense in cost of sales including occupancy costs on our consolidated statements of earnings. For premiums paid upfront to enter a lease agreement, we record a prepaid rent asset in prepaid expenses and other current assets on our consolidated balance sheets and amortize the deferred rent over the terms of the leases as additional rent expense in cost of sales including occupancy costs on our consolidated statements of earnings. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial possession, we record minimum rent expense on a straight-line basis over the terms of the leases in cost of sales including occupancy costs on our consolidated statements of earnings. Certain leases provide for contingent rent, which is determined as a percentage of gross sales in excess of specified levels. We record a contingent rent liability in accrued occupancy costs within accrued liabilities on our consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when we determine that achieving the specified levels during the fiscal year is probable. When ceasing operations of company-operated stores under operating leases, in cases where the lease contract specifies a termination fee due to the landlord, we record such expense at the time written notice is given to the landlord. In cases where terms, including termination fees, are yet to be negotiated with the landlord, we will record the expense upon signing of an agreement with the landlord. In cases where the landlord does not allow us to prematurely exit the lease, but allows for subleasing, we estimate the fair value of any sublease income that can be generated from the location and recognize an expense equal to the present value of the remaining lease payments to the landlord less any projected sublease income at the cease-use date. Lease Financing Arrangements We are sometimes involved in the construction of leased buildings, primarily stores. When we qualify as the deemed owner of these buildings due to significant involvement during the construction period under build-to-suit lease accounting requirements and do not qualify for sales recognition under sales-leaseback accounting guidance, we record the cost of the related buildings in property, plant and equipment. The offsetting lease financing obligations are recorded in other long-term liabilities, with the current portion recorded in in accrued occupancy costs within accrued liabilities on our consolidated balance sheets. These assets and obligations are amortized in depreciation and amortization and interest expense, respectively, on our consolidated statements of earnings based on the terms of the related lease agreements. |
Asset Retirement Obligations | Asset Retirement Obligations We recognize a liability for the fair value of required asset retirement obligations ("ARO") when such obligations are incurred. Our AROs are primarily associated with leasehold improvements, which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. At the inception of a lease with such conditions, we record an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. We estimate the liability using a number of assumptions, including store closing costs, cost inflation rates and discount rates, and accrete to its projected future value over time. The capitalized asset is depreciated using the same depreciation convention as leasehold improvement assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as a gain or loss in cost of sales including occupancy costs on our consolidated statements of earnings. As of September 27, 2015 and September 28, 2014 , our net ARO assets included in property, plant and equipment were $5.8 million and $4.1 million , respectively, and our net ARO liabilities included in other long-term liabilities were $60.1 million and $28.4 million , respectively. |
Stock-based Compensation | Stock-based Compensation We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units ("RSUs") or stock appreciation rights to employees, non-employee directors and consultants. We also have an employee stock purchase plan ("ESPP"). RSUs issued by us are equivalent to nonvested shares under the applicable accounting guidance. We record stock-based compensation expense based on the fair value of stock awards at the grant date and recognize the expense over the related service period following a graded vesting expense schedule. Expense for performance-based RSUs is recognized when it is probable the performance goal will be achieved. Performance goals are determined by the Board of Directors and may include measures such as earnings per share, operating income and return on invested capital. The fair value of each stock option granted is estimated on the grant date using the Black-Scholes-Merton option valuation model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and our historical experience. The fair value of RSUs is based on the closing price of Starbucks common stock on the award date, less the present value of expected dividends not received during the vesting period. Compensation expense is recognized over the requisite service period for each separately vesting portion of the award, and only for those options expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations. |
Foreign Currency Translation | Foreign Currency Translation Our international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are reported as a component of OCI and recorded in AOCI on our consolidated balance sheets. |
Income Taxes | Income Taxes We compute income taxes using the asset and liability method, under which deferred income taxes are recognized based on the differences between the financial statement carrying amounts and the respective tax basis of our assets and liabilities. Deferred tax assets and liabilities are measured using current enacted tax rates expected to apply to taxable income in the years in which we expect the temporary differences to reverse. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that some portion of the tax benefit will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. In addition, our income tax returns are periodically audited by domestic and foreign tax authorities. These audits include review of our tax filing positions, including the timing and amount of deductions taken and the allocation of income between tax jurisdictions. We evaluate our exposures associated with our various tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities, including resolutions of any related appeals or litigation processes, based on the technical merits of our position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. For uncertain tax positions that do not meet this threshold, we record a related liability. We adjust our unrecognized tax benefit liability and income tax expense in the period in which the uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position, or when new information becomes available. Starbucks recognizes interest and penalties related to income tax matters in income tax expense on our consolidated statements of earnings. Accrued interest and penalties are included within the related tax liability on our consolidated balance sheets. |
Earnings per Share | Earnings per Share Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock and the effect of dilutive potential common shares outstanding during the period, calculated using the treasury stock method. Dilutive potential common shares include outstanding stock options and RSUs. Performance-based RSUs are considered dilutive when the related performance criterion has been met. |
Common Stock Share Repurchases | Common Stock Share Repurchases We may repurchase shares of Starbucks common stock under a program authorized by our Board of Directors, including pursuant to a contract, instruction or written plan meeting the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements. Instead, the par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted from additional paid-in capital and from retained earnings, once additional paid-in capital is depleted. |
Recent Accounting Pronouncements Not Yet Adopted | In July 2015, the FASB issued guidance on the subsequent measurement of inventory, which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance will require prospective application at the beginning of our first quarter of fiscal 2018, but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability rather than an asset. The guidance will become effective for us at the beginning of our first quarter of fiscal 2017 and will only result in an immaterial change in presentation of these costs on our consolidated balance sheets. In February 2015, the FASB issued guidance that changes the evaluation criteria for consolidation and related disclosure requirements. This guidance introduces evaluation criteria specific to limited partnerships and other similar entities, as well as amends the criteria for evaluating variable interest entities with which the reporting entity is involved and certain investment funds. The guidance will become effective for us at the beginning of our first quarter of fiscal 2017. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. In May 2014, the FASB issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The original effective date of the guidance would have required us to adopt at the beginning of our first quarter of fiscal 2018. In July 2015, the FASB approved an optional one-year deferral of the effective date. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the overall impact this guidance will have on our consolidated financial statements, as well as the expected timing and method of adoption. Based on our preliminary assessment, we determined the adoption will change the timing of recognition and classification of our stored value card breakage income, which is currently recognized using the remote method and recorded in net interest income and other. The new guidance will require application of the proportional method and classification within total net revenues on our consolidated statements of earnings. Additionally, the new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. We are continuing our assessment, which may identify other impacts. In April 2014, the FASB issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the amended guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2016. We do not expect the adoption of this guidance will have a material impact on our financial statements. In July 2013, |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board ("FASB") issued guidance on the recognition of adjustments to preliminary amounts recognized in a business combination, which removes the requirement to retrospectively account for these adjustments. The guidance will become effective for us at the beginning of our first quarter of fiscal 2017. We will apply the guidance prospectively and do not expect the adoption will have a material impact on our consolidated financial statements. In July 2015, the FASB issued guidance on the subsequent measurement of inventory, which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance will require prospective application at the beginning of our first quarter of fiscal 2018, but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability rather than an asset. The guidance will become effective for us at the beginning of our first quarter of fiscal 2017 and will only result in an immaterial change in presentation of these costs on our consolidated balance sheets. In February 2015, the FASB issued guidance that changes the evaluation criteria for consolidation and related disclosure requirements. This guidance introduces evaluation criteria specific to limited partnerships and other similar entities, as well as amends the criteria for evaluating variable interest entities with which the reporting entity is involved and certain investment funds. The guidance will become effective for us at the beginning of our first quarter of fiscal 2017. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. In May 2014, the FASB issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The original effective date of the guidance would have required us to adopt at the beginning of our first quarter of fiscal 2018. In July 2015, the FASB approved an optional one-year deferral of the effective date. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the overall impact this guidance will have on our consolidated financial statements, as well as the expected timing and method of adoption. Based on our preliminary assessment, we determined the adoption will change the timing of recognition and classification of our stored value card breakage income, which is currently recognized using the remote method and recorded in net interest income and other. The new guidance will require application of the proportional method and classification within total net revenues on our consolidated statements of earnings. Additionally, the new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. We are continuing our assessment, which may identify other impacts. In April 2014, the FASB issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the amended guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2016. We do not expect the adoption of this guidance will have a material impact on our financial statements. In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance requires the unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset. When a deferred tax asset is not available, or the asset is not intended to be used for this purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and not netted with a deferred tax asset. The guidance became effective for us at the beginning of our first quarter of fiscal 2015 and did not have a material impact on our consolidated financial statements. In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance requires a parent to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance became effective for us at the beginning of our first quarter of fiscal 2015 and did not have a material impact on our consolidated financial statements. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Business Acquisition [Line Items] | |
Acquired intangible assets | Below is a tabular summary of the acquired intangible assets as of September 27, 2015 , for which the gross balances in total are $33.7 million lower than as of the October 31, 2014 acquisition date due to foreign currency translation (in millions) : Sep 27, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Reacquired rights $ 273.2 $ (39.0 ) $ 234.2 Licensing agreements 13.4 (1.1 ) 12.3 Customer loyalty program 2.7 (0.6 ) 2.1 Total acquired finite-lived intangible assets $ 289.3 $ (40.7 ) $ 248.6 |
Minimum future rental payments | The table below summarizes our estimated minimum future rental payments under the acquired non-cancelable operating leases and lease financing arrangements as of September 27, 2015 (in millions): Operating Leases Lease Financing Arrangements Year 1 $ 83.7 $ 2.8 Year 2 66.5 2.8 Year 3 49.0 2.8 Year 4 37.5 2.8 Year 5 30.3 2.7 Thereafter 129.4 24.8 Total minimum lease payments $ 396.4 $ 38.7 Minimum future rental payments under non-cancelable operating leases and lease financing arrangements as of September 27, 2015 (in millions) : Fiscal Year Ending Operating Leases Lease Financing Arrangements 2016 $ 1,032.4 $ 3.2 2017 892.5 3.2 2018 739.8 3.2 2019 624.0 3.2 2020 548.9 3.2 Thereafter 1,831.9 31.1 Total minimum lease payments $ 5,669.5 $ 47.1 |
Supplemental pro forma revenue and net earnings | The following table provides the supplemental pro forma revenue and net earnings of the combined entity had the acquisition date of Starbucks Japan been the first day of our first quarter of fiscal 2014 rather than during our first quarter of fiscal 2015 (in millions) : Pro Forma (unaudited) Year Ended Sep 27, 2015 Sep 28, 2014 Revenue $ 19,254.5 $ 17,646.4 Net earnings attributable to Starbucks (1) 2,380.9 2,449.9 |
Effects of change in Starbucks ownership interest in Starbucks Japan on Starbucks equity | The following table shows the effects of the change in Starbucks ownership interest in Starbucks Japan on Starbucks equity: Year Ended Sep 27, 2015 Sep 28, 2014 Net earnings attributable to Starbucks $ 2,757.4 $ 2,068.1 Transfers (to)/from the noncontrolling interest: Increase/(decrease) in additional paid-in capital for purchase of interest in subsidiary 1.7 — Change from net earnings attributable to Starbucks and transfers (to)/from noncontrolling interest $ 2,759.1 $ 2,068.1 |
Starbucks Coffee Japan Ltd [Member] | |
Business Acquisition [Line Items] | |
Allocation of total consideration to fair values of assets acquired and liabilities assumed | The following table summarizes the allocation of the total consideration to the fair values of the assets acquired and liabilities assumed as of October 31, 2014 (in millions) : 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 Deferred income taxes, net (current) 23.4 Property, plant and equipment 282.9 Other long-term assets 141.4 Other intangible assets 323.0 Goodwill 815.6 Total assets acquired 1,910.2 Accounts payable (54.5 ) Accrued liabilities (115.9 ) Stored value card liability (36.5 ) Deferred income taxes (noncurrent) (90.7 ) Other long-term liabilities (115.8 ) Total liabilities assumed (413.4 ) Noncontrolling interest (411.1 ) Total consideration $ 1,085.7 |
Teavana [Member] | |
Business Acquisition [Line Items] | |
Allocation of total consideration to fair values of assets acquired and liabilities assumed | The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date (in millions) : Fair Value at Dec 31, 2012 Cash and cash equivalents $ 47.0 Inventories 21.3 Property, plant and equipment 59.7 Other intangible assets 120.8 Goodwill 467.5 Other current and noncurrent assets 19.8 Current liabilities (36.0 ) Deferred income taxes (noncurrent) (54.3 ) Long-term debt (35.2 ) Other long-term liabilities (7.0 ) Total consideration $ 603.6 |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gains and Losses on Derivative Contracts Designated as Hedging Instruments Included in AOCI and Expected to be Reclassified into Earnings Within 12 months, Net of Tax | Gains and losses on derivative contracts designated as hedging instruments included in AOCI and expected to be reclassified into earnings within 12 months, net of tax ( in millions ): Net Gains/(Losses) Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Contract Remaining Maturity Sep 27, Sep 28, Cash Flow Hedges: Interest rates $ 30.1 $ 36.4 $ 3.5 4 Cross-currency swaps (27.8 ) — — 111 Foreign currency - other 29.0 10.6 19.2 35 Coffee (5.7 ) (0.7 ) (2.5 ) 12 Net Investment Hedges: Foreign currency 1.3 3.2 — 0 |
Gains and Losses on Derivative Contracts Designated as Hedging Instruments Included in AOCI and Expected to be Reclassified into Earnings Within 12 months, Net of Tax | Gains and losses on derivative contracts designated as hedging instruments included in AOCI and expected to be reclassified into earnings within 12 months, net of tax ( in millions ): Net Gains/(Losses) Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Contract Remaining Maturity Sep 27, Sep 28, Cash Flow Hedges: Interest rates $ 30.1 $ 36.4 $ 3.5 4 Cross-currency swaps (27.8 ) — — 111 Foreign currency - other 29.0 10.6 19.2 35 Coffee (5.7 ) (0.7 ) (2.5 ) 12 Net Investment Hedges: Foreign currency 1.3 3.2 — 0 |
Pretax Gains and Losses on Derivative Contracts Designated as Hedging Instruments Recognized in OCI and Reclassifications from AOCI to Earnings | Pretax gains and losses on derivative contracts designated as hedging instruments recognized in other comprehensive income ("OCI") and reclassifications from AOCI to earnings ( in millions ): Year Ended Gains/(Losses) Recognized in Gains/(Losses) Reclassified from AOCI to Earnings Sep 27, Sep 28, Sep 27, Sep 28, Cash Flow Hedges: Interest rates $ (6.8 ) $ 0.5 $ 3.2 $ 5.0 Cross-currency swaps 11.4 — 46.2 — Foreign currency - other 52.0 24.0 26.1 8.0 Coffee (9.0 ) (0.4 ) (3.5 ) (13.1 ) Net Investment Hedges: Foreign currency 4.3 25.5 7.2 — |
Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings | Pretax gains and losses on derivative contracts not designated as hedging instruments recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Sep 27, 2015 Sep 28, 2014 Foreign currency $ 27.1 $ 1.7 Coffee (0.2 ) — Dairy (3.8 ) 12.6 Diesel fuel (9.0 ) (1.0 ) |
Notional Amounts of Outstanding Derivative Contracts | Notional amounts of outstanding derivative contracts (in millions) : Sep 27, 2015 Sep 28, 2014 Interest rates $ 125 $ — Cross-currency swaps 717 — Foreign currency - other 577 542 Coffee 38 45 Dairy 43 24 Diesel fuel 14 17 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions): Fair Value Measurements at Reporting Date Using Balance at 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 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 10.2 — 10.2 — Foreign government obligations 2.0 — 2.0 — State and local government obligations 3.3 — 3.3 — Total available-for-sale securities 15.5 — 15.5 — Trading securities 65.8 65.8 — — Total short-term investments 81.3 65.8 15.5 — Prepaid expenses and other current assets: Derivative assets 50.8 — 50.8 — Long-term investments: Available-for-sale securities Agency obligations 8.6 — 8.6 — Corporate debt securities 121.8 — 121.8 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 18.5 — 18.5 — U.S. government treasury securities 104.8 104.8 — — State and local government obligations 9.7 — 9.7 — Mortgage and other asset-backed securities 43.2 — 43.2 — Total long-term investments 312.5 104.8 201.8 5.9 Other long-term assets: Derivative assets 54.7 — 54.7 — Total assets $ 2,029.4 $ 1,700.7 $ 322.8 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 19.2 $ 3.6 $ 15.6 $ — Other long-term liabilities: Derivative liabilities 14.5 — 14.5 — Total liabilities $ 33.7 $ 3.6 $ 30.1 $ — Fair Value Measurements at Reporting Date Using Balance at Quoted Prices Significant Significant Assets: Cash and cash equivalents $ 1,708.4 $ 1,708.4 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 4.9 — 4.9 — Foreign government obligations 33.7 — 33.7 — U.S. government treasury securities 10.9 10.9 — — State and local government obligations 12.7 — 12.7 — Certificates of deposit 1.0 — 1.0 — Total available-for-sale securities 63.2 10.9 52.3 — Trading securities 72.2 72.2 — — Total short-term investments 135.4 83.1 52.3 — Prepaid expenses and other current assets: Derivative assets 28.7 0.9 27.8 — Long-term investments: Available-for-sale securities Agency obligations 8.9 — 8.9 — Corporate debt securities 130.9 — 130.9 — Auction rate securities 13.8 — — 13.8 Foreign government obligations 17.4 — 17.4 — U.S. government treasury securities 94.8 94.8 — — State and local government obligations 6.7 — 6.7 — Mortgage and other asset-backed securities 45.9 — 45.9 — Total long-term investments 318.4 94.8 209.8 13.8 Other long-term assets: Derivative assets 18.0 — 18.0 — Total assets $ 2,208.9 $ 1,887.2 $ 307.9 $ 13.8 Liabilities: Accrued liabilities: Derivative liabilities $ 2.4 $ 0.4 $ 2.0 $ — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (in millions) Sep 27, 2015 Sep 28, 2014 Coffee: Unroasted $ 529.4 $ 432.3 Roasted 279.7 238.9 Other merchandise held for sale 318.3 265.7 Packaging and other supplies 179.0 154.0 Total $ 1,306.4 $ 1,090.9 |
Equity and Cost Investments (Ta
Equity and Cost Investments (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity and Cost Method Investments | Equity and Cost Investments (in millions) Sep 27, Sep 28, Equity method investments $ 306.4 $ 469.3 Cost method investments 45.6 45.6 Total $ 352.0 $ 514.9 |
Summarized Combined Financial Information of Equity Method Investees | Summarized combined financial information of our equity method investees, which represent 100% of the investees’ financial information ( in millions ): Financial Position as of Sep 27, Sep 28, Current assets $ 402.8 $ 701.3 Noncurrent assets 578.8 873.9 Current liabilities 490.0 615.6 Noncurrent liabilities 38.7 79.1 Results of Operations for Fiscal Year Ended Sep 27, Sep 28, Sep 29, Net revenues $ 2,688.0 $ 3,461.3 $ 3,018.7 Operating income 426.4 467.7 434.8 Net earnings 392.1 382.6 358.0 |
Supplemental Balance Sheet In33
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Sep 27, 2015 Sep 28, 2014 Land $ 46.6 $ 46.7 Buildings 411.5 278.1 Leasehold improvements 5,409.6 4,858.4 Store equipment 1,707.5 1,493.3 Roasting equipment 542.4 410.9 Furniture, fixtures and other 1,281.7 1,078.1 Work in progress 242.5 415.6 Property, plant and equipment, gross 9,641.8 8,581.1 Accumulated depreciation (5,553.5 ) (5,062.1 ) Property, plant and equipment, net $ 4,088.3 $ 3,519.0 |
Accrued Liabilities | Accrued Liabilities Sep 27, 2015 Sep 28, 2014 Accrued compensation and related costs $ 522.3 $ 437.9 Accrued occupancy costs 137.2 119.8 Accrued taxes 259.0 272.0 Accrued dividends payable 297.0 239.8 Other 545.2 444.9 Total accrued liabilities $ 1,760.7 $ 1,514.4 |
Other Intangible Assets and G34
Other Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Assets (in millions) Sep 27, 2015 Sep 28, 2014 Trade names, trademarks and patents $ 202.8 $ 197.5 Other indefinite-lived intangible assets 15.1 15.1 Total indefinite-lived intangible assets $ 217.9 $ 212.6 |
Changes In Carrying Amount Of Goodwill By Reportable Operating Segment | Goodwill Changes in the carrying amount of goodwill by reportable operating segment (in millions) : Americas China/Asia Pacific EMEA Channel All Other Segments Total Balance at September 29, 2013 Goodwill prior to impairment $ 230.2 $ 75.1 $ 62.2 $ 23.8 $ 480.2 $ 871.5 Accumulated impairment charges (8.6 ) — — — — (8.6 ) Goodwill $ 221.6 $ 75.1 $ 62.2 $ 23.8 $ 480.2 $ 862.9 Impairment — — — — (0.8 ) (0.8 ) Other (1) (2.6 ) (0.2 ) (3.1 ) — — (5.9 ) Balance at September 28, 2014 Goodwill prior to impairment $ 227.6 $ 74.9 $ 59.1 $ 23.8 $ 480.2 $ 865.6 Accumulated impairment charges (8.6 ) — — — (0.8 ) (9.4 ) Goodwill $ 219.0 $ 74.9 $ 59.1 $ 23.8 $ 479.4 $ 856.2 Acquisition/(divestiture) (2.5 ) 815.6 — — — 813.1 Impairment — — — — (0.5 ) (0.5 ) Other (1) (5.3 ) (86.4 ) (1.7 ) — — (93.4 ) Balance at September 27, 2015 Goodwill prior to impairment $ 219.8 $ 804.1 $ 57.4 $ 23.8 $ 480.2 $ 1,585.3 Accumulated impairment charges (8.6 ) — — — (1.3 ) (9.9 ) Goodwill $ 211.2 $ 804.1 $ 57.4 $ 23.8 $ 478.9 $ 1,575.4 (1) Other is primarily comprised of changes in the goodwill balance as a result of foreign currency translation. |
Finite-Lived Intangible Assets | inite-Lived Intangible Assets Sep 27, 2015 Sep 28, 2014 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired and reacquired rights $ 308.6 $ (52.5 ) $ 256.1 $ 36.8 $ (10.1 ) $ 26.7 Acquired trade secrets and processes 27.6 (8.2 ) 19.4 27.6 (5.4 ) 22.2 Licensing agreements 13.4 (1.1 ) 12.3 — — — Trade names, trademarks and patents 24.5 (13.0 ) 11.5 21.6 (11.6 ) 10.0 Other finite-lived intangible assets 6.5 (3.3 ) 3.2 3.8 (1.8 ) 2.0 Total finite-lived intangible assets $ 380.6 $ (78.1 ) $ 302.5 $ 89.8 $ (28.9 ) $ 60.9 |
Estimated Future Amortization Expense | Estimated future amortization expense as of September 27, 2015 ( in millions ): Fiscal Year Ending 2016 $ 53.2 2017 52.9 2018 51.5 2019 51.2 2020 51.1 Thereafter 42.6 Total estimated future amortization expense $ 302.5 Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2 , Acquisitions and Divestitures. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values | Components of long-term debt including the associated interest rates and related fair values ( in millions, except interest rates) : Sep 27, 2015 Sep 28, 2014 Stated Interest Rate Effective Interest Rate (1) Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2016 notes $ 400.0 $ 400 $ 400.0 $ 400 0.875 % 0.941 % 2017 notes — — 550.0 625 6.250 % — % 2018 notes 350.0 354 350.0 353 2.000 % 2.012 % 2022 notes 500.0 503 — — 2.700 % 2.819 % 2023 notes 750.0 790 750.0 786 3.850 % 2.860 % 2045 notes 350.0 355 — — 4.300 % 4.348 % Total 2,350.0 2,402 2,050.0 2,164 Aggregate unamortized discount 2.5 1.7 Total $ 2,347.5 $ 2,048.3 (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. |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes our long-term debt maturities as of September 27, 2015 ( in millions ): Fiscal Year Total 2016 $ — 2017 400.0 2018 — 2019 350.0 2020 — Thereafter 1,600.0 Total $ 2,350.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Leases [Abstract] | |
Rent Expense Under Operating Lease Agreements | Rent expense under operating lease agreements (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Minimum rent $ 1,026.3 $ 907.4 $ 838.3 Contingent rent 111.5 66.8 56.4 Total $ 1,137.8 $ 974.2 $ 894.7 |
Minimum future rental payments | The table below summarizes our estimated minimum future rental payments under the acquired non-cancelable operating leases and lease financing arrangements as of September 27, 2015 (in millions): Operating Leases Lease Financing Arrangements Year 1 $ 83.7 $ 2.8 Year 2 66.5 2.8 Year 3 49.0 2.8 Year 4 37.5 2.8 Year 5 30.3 2.7 Thereafter 129.4 24.8 Total minimum lease payments $ 396.4 $ 38.7 Minimum future rental payments under non-cancelable operating leases and lease financing arrangements as of September 27, 2015 (in millions) : Fiscal Year Ending Operating Leases Lease Financing Arrangements 2016 $ 1,032.4 $ 3.2 2017 892.5 3.2 2018 739.8 3.2 2019 624.0 3.2 2020 548.9 3.2 Thereafter 1,831.9 31.1 Total minimum lease payments $ 5,669.5 $ 47.1 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Equity [Abstract] | |
Dividends Declared | During fiscal years 2015 and 2014 , our Board of Directors declared the following dividends ( in millions, except per share amounts) : Dividend Per Share Record date Total Amount Payment Date Fiscal Year 2015 First quarter $0.16 February 5, 2015 $240.1 February 20, 2015 Second quarter $0.16 May 7, 2015 $240.1 May 22, 2015 Third quarter $0.16 August 6, 2015 $239.0 August 21, 2015 Fourth quarter $0.20 November 12, 2015 $297.0 November 27, 2015 Fiscal Year 2014: First quarter $0.13 February 6, 2014 $196.4 February 21, 2014 Second quarter $0.13 May 8, 2014 $195.5 May 23, 2014 Third quarter $0.13 August 7, 2014 $195.3 August 22, 2014 Fourth quarter $0.16 November 13, 2014 $239.8 November 28, 2014 |
Changes in Components of Accumulated Other Comprehensive Income, Net of Tax | Changes in accumulated other comprehensive income ("AOCI") by component, for year ended September 27, 2015 , net of tax: (in millions) Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment Total September 27, 2015 Net gains/(losses) in AOCI, beginning of period $ (0.4 ) $ 46.3 $ 3.2 $ (23.8 ) $ 25.3 Net gains/(losses) recognized in OCI before reclassifications 0.9 30.8 2.7 (185.6 ) (151.2 ) Net (gains)/losses reclassified from AOCI to earnings (0.6 ) (51.5 ) (4.6 ) 14.3 (42.4 ) Other comprehensive income/(loss) attributable to Starbucks 0.3 (20.7 ) (1.9 ) (171.3 ) (193.6 ) Purchase of noncontrolling interest — — — (31.1 ) (31.1 ) Net gains/(losses) in AOCI, end of period $ (0.1 ) $ 25.6 $ 1.3 $ (226.2 ) $ (199.4 ) (in millions) Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment Total September 28, 2014 Net gains/(losses) in AOCI, beginning of period $ (0.5 ) $ 26.8 $ (12.9 ) $ 53.6 $ 67.0 Net gains/(losses) recognized in OCI before reclassifications 1.0 16.3 16.1 (77.4 ) (44.0 ) Net (gains)/losses reclassified from AOCI to earnings (0.9 ) 3.2 — — 2.3 Other comprehensive income/(loss) attributable to Starbucks 0.1 19.5 16.1 (77.4 ) (41.7 ) Net gains/(losses) in AOCI, end of period $ (0.4 ) $ 46.3 $ 3.2 $ (23.8 ) $ 25.3 |
Impact of Reclassification from Accumulated Other Comprehensive Income on Earnings | Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions) : AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Gains/(losses) on cash flow hedges Interest rate hedges $ 3.2 $ 5.0 Interest expense Cross-currency swaps 46.2 — Interest income and other, net Foreign currency hedges 14.0 5.1 Revenue Foreign currency/coffee hedges 8.6 (10.0 ) Cost of sales including occupancy costs Gains/(losses) on net investment hedges (1) 7.2 — Gain resulting from acquisition of joint venture Translation adjustment (2) Starbucks Japan (7.2 ) — Gain resulting from acquisition of joint venture Other (7.1 ) — Interest income and other, net 64.9 0.1 Total before tax (23.1 ) (3.3 ) Tax (expense)/benefit $ 41.8 $ (3.2 ) Net of tax |
Employee Stock and Benefit Pl38
Employee Stock and Benefit Plans (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense Recognized in the Consolidated Financial Statements | Stock-based compensation expense recognized in the consolidated financial statements (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Options $ 37.8 $ 41.8 $ 37.1 RSUs 172.0 141.4 105.2 Total stock-based compensation expense recognized in the consolidated statements of earnings $ 209.8 $ 183.2 $ 142.3 Total related tax benefit $ 72.3 $ 63.4 $ 49.8 Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets $ 1.9 $ 1.9 $ 1.8 |
Employee Stock Options Granted During the Period, Valuation Assumptions | The fair value of stock option awards was estimated at the grant date with the following weighted average assumptions for fiscal years 2015 , 2014 , and 2013 : Employee Stock Options Fiscal Year Ended 2015 2014 2013 Expected term (in years) 4.2 4.5 4.8 Expected stock price volatility 22.3 % 26.8 % 34.0 % Risk-free interest rate 1.1 % 1.1 % 0.7 % Expected dividend yield 1.6 % 1.3 % 1.6 % Weighted average grant price $ 39.89 $ 40.12 $ 25.62 Estimated fair value per option granted $ 6.58 $ 8.36 $ 6.44 |
Stock Option Transactions | Stock option transactions for the year ended September 27, 2015 (in millions, except per share and contractual life amounts) : Shares Weighted Weighted Aggregate Outstanding, September 28, 2014 39.6 $ 18.93 5.8 $ 754 Granted 6.4 39.89 Exercised (11.3 ) 14.99 Expired/forfeited (1.1 ) 32.38 Outstanding, September 27, 2015 33.6 23.81 6.0 1,150 Exercisable, September 27, 2015 21.1 16.75 4.7 872 Vested and expected to vest, September 27, 2015 32.4 23.29 5.9 1,125 |
RSU Transactions | RSU transactions for the year ended September 27, 2015 (in millions, except per share and contractual life amounts) : Number Weighted Weighted Aggregate Nonvested, September 28, 2014 10.8 $ 31.17 1.0 $ 407 Granted 6.7 38.56 Vested (5.1 ) 26.73 Forfeited/canceled (1.7 ) 36.10 Nonvested, September 27, 2015 10.7 36.35 1.0 620 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings/(Loss) Before Income Taxes | Components of earnings/(loss) before income taxes (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total Litigation charge All Other United States $ 2,837.2 $ 2,572.4 $ (674.0 ) $ (2,784.1 ) $ 2,110.1 Foreign 1,065.8 587.3 444.1 — 444.1 Total earnings/(loss) before income taxes $ 3,903.0 $ 3,159.7 $ (229.9 ) $ (2,784.1 ) $ 2,554.2 |
Provision/(Benefit) for Income Taxes | Provision/(benefit) for income taxes (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total Litigation charge All Other Current taxes: U.S. federal $ 801.0 $ 822.7 $ 616.6 $ — $ 616.6 U.S. state and local 150.1 132.9 93.8 — 93.8 Foreign 172.2 128.8 95.9 — 95.9 Total current taxes 1,123.3 1,084.4 806.3 — 806.3 Deferred taxes: U.S. federal 56.5 12.0 (898.8 ) (922.3 ) 23.5 U.S. state and local 4.0 (4.9 ) (144.0 ) (148.7 ) 4.7 Foreign (40.1 ) 0.5 (2.2 ) — (2.2 ) Total deferred taxes 20.4 7.6 (1,045.0 ) (1,071.0 ) 26.0 Total income tax expense/(benefit) $ 1,143.7 $ 1,092.0 $ (238.7 ) $ (1,071.0 ) $ 832.3 |
Reconciliation of the Statutory U.S. Federal Income Tax Rate With Our Effective Income Tax Rate | Reconciliation of the statutory U.S. federal income tax rate with our effective income tax rate: Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total Litigation charge All Other Statutory rate 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.8 2.6 15.8 3.5 2.4 Benefits and taxes related to foreign operations (2.1 ) (1.9 ) 37.5 — (3.4 ) Domestic production activity deduction (2.2 ) (0.7 ) 8.1 — (0.7 ) Domestic tax credits (0.2 ) (0.2 ) 2.8 — (0.3 ) Charitable contributions (0.3 ) (0.4 ) 3.9 — (0.3 ) Gain resulting from acquisition of joint venture (3.7 ) — — — — Other, net — 0.2 0.7 — (0.1 ) Effective tax rate 29.3 % 34.6 % 103.8 % 38.5 % 32.6 % |
Tax Effect of Temporary Differences and Carryforwards that Comprise Significant Portions of Deferred Tax Assets and Liabilities | Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions): Sep 27, 2015 Sep 28, 2014 Deferred tax assets: Property, plant and equipment $ 121.4 $ 78.5 Accrued occupancy costs 98.4 58.8 Accrued compensation and related costs 81.7 75.3 Other accrued liabilities 49.0 27.6 Asset retirement obligation asset 29.0 18.6 Stored value card liability 99.1 63.4 Asset impairments 26.2 49.5 Tax credits 20.8 20.3 Stock-based compensation 135.5 131.5 Net operating losses 93.4 104.4 Litigation charge 931.0 1,002.0 Other 104.5 77.0 Total $ 1,790.0 $ 1,706.9 Valuation allowance (143.7 ) (166.8 ) Total deferred tax asset, net of valuation allowance $ 1,646.3 $ 1,540.1 Deferred tax liabilities: Property, plant and equipment (217.5 ) (148.2 ) Intangible assets and goodwill (177.3 ) (92.9 ) Other (114.1 ) (89.4 ) Total (508.9 ) (330.5 ) Net deferred tax asset $ 1,137.4 $ 1,209.6 Reported as: Current deferred income tax assets $ 381.7 $ 317.4 Long-term deferred income tax assets 828.9 903.3 Current deferred income tax liabilities (included in Accrued liabilities) (5.4 ) (4.2 ) Long-term deferred income tax liabilities (included in Other long-term liabilities) (67.8 ) (6.9 ) Net deferred tax asset $ 1,137.4 $ 1,209.6 |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits (in millions) : Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Beginning balance $ 112.7 $ 88.8 $ 75.3 Increase related to prior year tax positions 7.9 1.4 8.9 Decrease related to prior year tax positions (0.9 ) (2.2 ) (9.3 ) Increase related to current year tax positions 32.0 26.7 19.3 Decrease related to current year tax positions (0.6 ) (1.9 ) (0.4 ) Decreases related to settlements with taxing authorities (0.7 ) (0.1 ) — Decreases related to lapsing of statute of limitations — — (5.0 ) Ending balance $ 150.4 $ 112.7 $ 88.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Net Earnings Per Common Share (EPS) - Basic and Diluted | Calculation of net earnings per common share ("EPS") — basic and diluted (in millions, except EPS) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Net earnings attributable to Starbucks $ 2,757.4 $ 2,068.1 $ 8.3 Weighted average common shares outstanding (for basic calculation) 1,495.9 1,506.3 1,498.5 Dilutive effect of outstanding common stock options and RSUs 17.5 20.0 26.0 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,513.4 1,526.3 1,524.5 EPS — basic $ 1.84 $ 1.37 $ 0.01 EPS — diluted $ 1.82 $ 1.35 $ 0.01 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Segment Reporting [Abstract] | |
Consolidated Revenue Mix by Product Type | Consolidated revenue mix by product type (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Beverage $ 11,115.4 58 % $ 9,458.4 58 % $ 8,674.7 58 % Food 3,085.3 16 % 2,505.2 15 % 2,189.8 15 % Packaged and single-serve coffees and teas 2,619.9 14 % 2,370.0 14 % 2,206.5 15 % Other (1) 2,342.1 12 % 2,114.2 13 % 1,795.8 12 % Total $ 19,162.7 100 % $ 16,447.8 100 % $ 14,866.8 100 % (1) "Other" primarily consists of royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and serveware, among other items. |
Information by geographic area | Information by geographic area ( in millions ): Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Net revenues: United States $ 14,123.7 $ 12,590.6 $ 11,389.6 Other countries 5,039.0 3,857.2 3,477.2 Total $ 19,162.7 $ 16,447.8 $ 14,866.8 Long-lived assets: United States $ 5,468.1 $ 5,135.8 $ 4,641.3 Other countries 2,625.3 1,448.4 1,404.0 Total $ 8,093.4 $ 6,584.2 $ 6,045.3 |
Financial Information for Reportable Operating Segments and All Other Segments | The table below presents financial information for our reportable operating segments and All Other Segments for the years ended September 27, 2015 , September 28, 2014 , and September 29, 2013 . ( in millions ) Americas China / Asia Pacific EMEA Channel Development All Other Segments Segment Total Fiscal 2015 Total net revenues $ 13,293.4 $ 2,395.9 $ 1,216.7 $ 1,730.9 $ 525.8 $ 19,162.7 Depreciation and amortization expenses 522.3 150.7 52.0 2.7 16.3 744.0 Income from equity investees — 119.6 3.1 127.2 — 249.9 Operating income/(loss) 3,223.3 500.5 168.2 653.9 (24.8 ) 4,521.1 Total assets 2,726.7 2,230.5 749.1 87.3 1,785.3 7,578.9 Fiscal 2014 Total net revenues $ 11,980.5 $ 1,129.6 $ 1,294.8 $ 1,546.0 $ 496.9 $ 16,447.8 Depreciation and amortization expenses 469.5 46.1 59.4 1.8 15.2 592.0 Income from equity investees — 164.0 3.7 100.6 — 268.3 Operating income/(loss) 2,809.0 372.5 119.2 557.2 (26.8 ) 3,831.1 Total assets 2,521.4 939.8 663.0 84.6 825.2 5,034.0 Fiscal 2013 Total net revenues $ 11,000.8 $ 917.0 $ 1,160.0 $ 1,398.9 $ 390.1 $ 14,866.8 Depreciation and amortization expenses 429.3 33.8 55.5 1.1 11.7 531.4 Income from equity investees 2.4 152.0 0.4 96.6 — 251.4 Operating income/(loss) 2,365.2 321.2 64.2 415.5 (34.5 ) 3,131.6 Total assets 2,323.4 805.0 510.6 89.2 821.1 4,549.3 |
Reconciliation of Total Segment Operating Income to Consolidated Earnings/(Loss) Before Income Taxes | The following table reconciles total segment operating income in the table above to consolidated earnings/(loss) before income taxes (in millions) : Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Total segment operating income $ 4,521.1 $ 3,831.1 $ 3,131.6 Unallocated corporate operating expenses (1) (920.1 ) (750.0 ) (3,457.0 ) Consolidated operating income/(loss) 3,601.0 3,081.1 (325.4 ) Gain resulting from acquisition of joint venture 390.6 — — Loss on extinguishment of debt (61.1 ) — — Interest income and other, net 43.0 142.7 123.6 Interest expense (70.5 ) (64.1 ) (28.1 ) Earnings/(loss) before income taxes $ 3,903.0 $ 3,159.7 $ (229.9 ) (1) Fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the litigation charge we recorded associated with the conclusion of our arbitration with Kraft. |
Selected Quarterly Financial 42
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Sep. 27, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Selected Quarterly Financial Information | Selected Quarterly Financial Information (unaudited; in millions, except EPS) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Fiscal 2015: Net revenues $ 4,803.2 $ 4,563.5 $ 4,881.2 $ 4,914.8 $ 19,162.7 Operating income 915.5 777.5 938.6 969.4 3,601.0 Net earnings attributable to Starbucks 983.1 494.9 626.7 652.5 2,757.4 EPS — diluted (1) 0.65 0.33 0.41 0.43 1.82 Fiscal 2014: Net revenues $ 4,239.6 $ 3,873.8 $ 4,153.7 $ 4,180.8 $ 16,447.8 Operating income 813.5 644.1 768.5 854.9 3,081.1 Net earnings attributable to Starbucks 540.7 427.0 512.6 587.9 2,068.1 EPS — diluted (1) 0.35 0.28 0.34 0.39 1.35 |
Acquisitions and Divestitures43
Acquisitions and Divestitures (Narrative) (Details) ¥ in Millions, $ in Millions | Jun. 12, 2015JPY (¥) | Jun. 12, 2015USD ($) | Mar. 26, 2015 | Dec. 29, 2014JPY (¥) | Dec. 29, 2014USD ($) | Oct. 31, 2014JPY (¥) | Oct. 31, 2014USD ($) | Sep. 27, 2015JPY (¥) | Sep. 27, 2015USD ($) | Jun. 28, 2015JPY (¥) | Jun. 28, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 29, 2013USD ($) | Jun. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Mar. 31, 2013USD ($) | Jun. 28, 2015USD ($) | Oct. 02, 2016JPY (¥) | Oct. 02, 2016USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 29, 2013USD ($) | Dec. 28, 2014 | Oct. 26, 2014 | Dec. 31, 2012USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Finite-lived intangible assets, amortization expense | $ 50 | $ 8.7 | $ 7.7 | ||||||||||||||||||||||
Unfavorable/favorable leases, rent expense/(reduction) | 1,137.8 | 974.2 | 894.7 | ||||||||||||||||||||||
Gain resulting from acquisition of joint venture | $ 390.6 | $ 0 | $ 0 | ||||||||||||||||||||||
Puerto Rico Retail Operations [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Total proceeds from sale of retail store assets and operations | $ 8.9 | ||||||||||||||||||||||||
Gain/(loss) resulting from divestiture | 3.7 | ||||||||||||||||||||||||
Starbucks Coffee Japan Ltd [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Preexisting ownership percentage | 39.50% | 39.50% | |||||||||||||||||||||||
Remaining Ownership Interest in Equity Method Investee to be Acquired | 60.50% | 60.50% | |||||||||||||||||||||||
Reason for acquisition | Acquiring Starbucks Japan further leverages our existing infrastructure to continue disciplined retail store growth and expand our presence into other channels in the Japan market, such as consumer packaged goods ("CPG"), licensing and foodservice | ||||||||||||||||||||||||
Additional ownership interest acquired | 14.70% | 14.70% | 39.50% | ||||||||||||||||||||||
Cash paid to acquire additional ownership interest | ¥ 13,500 | $ 109 | ¥ 31,000 | $ 258 | ¥ 55,000 | $ 508.7 | ¥ 3,200 | $ 26 | ¥ 9,600 | $ 78 | |||||||||||||||
Total ownership interest in Starbucks Japan acquired through first tender offer step | 79.00% | ||||||||||||||||||||||||
Remaining interest of minority shareholders' to be acquired | 6.30% | 21.00% | 21.00% | ||||||||||||||||||||||
Ownership interest after conclusion of Cash-out procedure | 100.00% | ||||||||||||||||||||||||
Reference conversion rate | 120.39 | 120.39 | 120.72 | 123.87 | 123.87 | 123.87 | 120.72 | 108.13 | |||||||||||||||||
Acquisition-related costs incurred | $ 11.9 | ||||||||||||||||||||||||
Acquisition date | Oct. 31, 2014 | Oct. 31, 2014 | |||||||||||||||||||||||
Finite-lived intangible assets, effect of foreign currency translation | $ (33.7) | ||||||||||||||||||||||||
Finite-lived intangible assets, amortization expense | 41 | ||||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization expense, next twelve months | $ 44 | 44 | |||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization expense, year two | 44 | 44 | |||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization expense, year three | 44 | 44 | |||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization expense, year four | 44 | 44 | |||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization expense, year five | 44 | 44 | |||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization expense, after year five | $ 29 | 29 | |||||||||||||||||||||||
Goodwill | $ 815.6 | 730.5 | |||||||||||||||||||||||
Goodwill description | the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including store partners in the region that have strong relationships with these customers, the existing geographic retail and online presence, and the expected geographic presence in new channels | the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including store partners in the region that have strong relationships with these customers, the existing geographic retail and online presence, and the expected geographic presence in new channels | |||||||||||||||||||||||
Goodwill, effect of foreign currency translation | (85.1) | ||||||||||||||||||||||||
Favorable lease assets acquired | $ 7.5 | ||||||||||||||||||||||||
Unfavorable lease liabilities assumed | $ 15.5 | ||||||||||||||||||||||||
Favorable lease assets and unfavorable lease liabilities, weighted average remaining term (years) | 9 years 4 months 24 days | 9 years 4 months 24 days | |||||||||||||||||||||||
Unfavorable/favorable leases, rent expense/(reduction) | (0.8) | ||||||||||||||||||||||||
Gain resulting from acquisition of joint venture | 390.6 | ||||||||||||||||||||||||
Fair value of preexisting equity interest | $ 577 | ||||||||||||||||||||||||
Revenue included in consolidated statements of earnings | 1,100 | ||||||||||||||||||||||||
Net earnings included in consolidated statements of earnings | 108.5 | ||||||||||||||||||||||||
Pro forma revenue | 19,254.5 | $ 17,646.4 | |||||||||||||||||||||||
Pro forma net earnings attributable to Starbucks | 2,380.9 | $ 2,449.9 | |||||||||||||||||||||||
Transaction and integration costs | $ 13.6 | ||||||||||||||||||||||||
Starbucks Coffee Japan Ltd [Member] | Scenario, Forecast [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Cash paid to acquire additional ownership interest | ¥ 674 | $ 6 | |||||||||||||||||||||||
Starbucks Coffee Japan Ltd [Member] | Acquired and reacquired rights [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Finite-lived intangible assets acquired | $ 305 | ||||||||||||||||||||||||
Finite-lived intangible assets, life (years) | 6 years 4 months 24 days | 6 years 4 months 24 days | |||||||||||||||||||||||
Starbucks Coffee Japan Ltd [Member] | Licensing agreements [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Finite-lived intangible assets acquired | $ 15 | ||||||||||||||||||||||||
Finite-lived intangible assets, life (years) | 10 years 10 months 24 days | 10 years 10 months 24 days | |||||||||||||||||||||||
Starbucks Coffee Japan Ltd [Member] | Customer loyalty program [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Finite-lived intangible assets acquired | $ 3 | ||||||||||||||||||||||||
Finite-lived intangible assets, life (years) | 4 years | 4 years | |||||||||||||||||||||||
Australia Retail Operations [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Total proceeds from sale of retail store assets and operations | $ 15.9 | ||||||||||||||||||||||||
Gain/(loss) resulting from divestiture | $ 2.4 | ||||||||||||||||||||||||
Starbucks Chile [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Gain/(loss) resulting from divestiture | $ 45.9 | ||||||||||||||||||||||||
Ownership interest sold to joint venture partner | 82.00% | 82.00% | |||||||||||||||||||||||
Purchase price of joint venture sold | $ 68.6 | ||||||||||||||||||||||||
Costa Rica Coffee Farm [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Additional ownership interest acquired | 100.00% | ||||||||||||||||||||||||
Cash paid to acquire additional ownership interest | $ 8.1 | ||||||||||||||||||||||||
Teavana [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Reason for acquisition | to elevate our tea offerings as well as expand our domestic and global tea footprint | ||||||||||||||||||||||||
Additional ownership interest acquired | 100.00% | ||||||||||||||||||||||||
Cash paid to acquire additional ownership interest | $ 615.8 | ||||||||||||||||||||||||
Acquisition date | Dec. 31, 2012 | ||||||||||||||||||||||||
Goodwill | $ 467.5 | ||||||||||||||||||||||||
Goodwill description | the intangible assets that do not qualify for separate recognition, primarily including Teavana's established global store presence in high traffic mall locations and other high-sales-volume retail venues, Teavana's global customer base, and Teavana's "Heaven of tea" retail experience in which store employees engage and educate customers about the ritual and enjoyment of tea | ||||||||||||||||||||||||
Contingent consideration receivable | $ 12.2 | ||||||||||||||||||||||||
Long-term debt repaid at closing | $ 35.2 | ||||||||||||||||||||||||
Teavana [Member] | Trade Names [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Indefinite-lived intangible assets acquired | $ 105.5 | ||||||||||||||||||||||||
Teavana [Member] | Acquired trade secrets and processes [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Finite-lived intangible assets acquired | $ 13 | ||||||||||||||||||||||||
Finite-lived intangible assets, life (years) | 10 years | ||||||||||||||||||||||||
Teavana [Member] | Noncompete Agreements [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||
Finite-lived intangible assets acquired | $ 2.3 | ||||||||||||||||||||||||
Finite-lived intangible assets, life (years) | 3 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Millions | Apr. 09, 2015USD ($)$ / shares | Sep. 27, 2015USD ($)$ / shares | Sep. 28, 2014USD ($)$ / shares | Sep. 29, 2013USD ($) |
Accounting Policies [Abstract] | ||||
Number of reportable operating segments | 4 | |||
Receivables, net of Allowance for Doubtful Accounts | ||||
Allowance for doubtful accounts | $ 10.8 | $ 6.7 | ||
Inventories | ||||
Inventory reserves | 33.8 | 31.2 | ||
Property, Plant and Equipment [Line Items] | ||||
Net disposition charges on property, plant and equipment | (12.5) | (14.7) | $ (17.4) | |
Net impairment charges on property, plant and equipment | 25.8 | 19 | 12.7 | |
Other Intangible Assets | ||||
Other intangible asset impairment charges | 0 | 0 | 0 | |
Revenue Recognition | ||||
Breakage income | 39.3 | 38.3 | 33 | |
Marketing & Advertising | ||||
Marketing expenses | 351.5 | 315.5 | 306.8 | |
Advertising expenses | 227.9 | 198.9 | $ 205.8 | |
Asset Retirement Obligations | ||||
Net ARO assets included in property, plant and equipment | 5.8 | 4.1 | ||
Net ARO liabilities included in other long-term liabilities | $ 60.1 | $ 28.4 | ||
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||
Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of property, plant and equipment, in years | 15 years | |||
Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of property, plant and equipment, in years | 2 years | |||
Buildings [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of property, plant and equipment, in years | 40 years | |||
Buildings [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of property, plant and equipment, in years | 30 years | |||
Leasehold improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of property, plant and equipment, in years | 10 years | |||
Commodity Contract [Member] | Maximum [Member] | ||||
Derivative [Line Items] | ||||
Derivative instruments maturity, in years | 3 years | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ / shares | $ 0.001 | |||
Impact to shareholders' equity from stock split | $ 0 |
Acquisitions and Divestitures45
Acquisitions and Divestitures (Allocation of Total Consideration to Fair Value of Assets Acquired and Liabilities Assumed) (Details) $ in Millions, ¥ in Billions | Jun. 12, 2015JPY (¥) | Jun. 12, 2015USD ($) | Dec. 29, 2014JPY (¥) | Dec. 29, 2014USD ($) | Oct. 31, 2014JPY (¥) | Oct. 31, 2014USD ($) | Sep. 27, 2015JPY (¥) | Sep. 27, 2015USD ($) | Jun. 28, 2015JPY (¥) | Jun. 28, 2015USD ($) | Mar. 31, 2013USD ($) | Mar. 31, 2013USD ($) | Sep. 27, 2015USD ($) | Dec. 31, 2012USD ($) |
Starbucks Coffee Japan Ltd [Member] | ||||||||||||||
Cash paid to acquire additional ownership interest | ¥ 13.5 | $ 109 | ¥ 31 | $ 258 | ¥ 55 | $ 508.7 | ¥ 3.2 | $ 26 | ¥ 9.6 | $ 78 | ||||
Fair value of preexisting equity interest | 577 | |||||||||||||
Cash and cash equivalents | 224.4 | |||||||||||||
Accounts receivable, net | 37.4 | |||||||||||||
Inventories | 26.4 | |||||||||||||
Prepaid expenses and other current assets | 35.7 | |||||||||||||
Deferred income taxes, net (current) | 23.4 | |||||||||||||
Property, plant and equipment | 282.9 | |||||||||||||
Other long-term assets | 141.4 | |||||||||||||
Other intangible assets, finite-lived | 323 | |||||||||||||
Goodwill | 815.6 | $ 730.5 | ||||||||||||
Total assets acquired | 1,910.2 | |||||||||||||
Accounts payable | (54.5) | |||||||||||||
Accrued liabilities | (115.9) | |||||||||||||
Stored value card liability | (36.5) | |||||||||||||
Deferred income taxes (noncurrent) | (90.7) | |||||||||||||
Other long-term liabilities | (115.8) | |||||||||||||
Total liabilities assumed | 413.4 | |||||||||||||
Noncontrolling interest | (411.1) | |||||||||||||
Total consideration | $ 1,085.7 | |||||||||||||
Teavana [Member] | ||||||||||||||
Cash paid to acquire additional ownership interest | $ 615.8 | |||||||||||||
Cash and cash equivalents | $ 47 | |||||||||||||
Inventories | 21.3 | |||||||||||||
Property, plant and equipment | 59.7 | |||||||||||||
Other intangible assets | 120.8 | |||||||||||||
Goodwill | $ 467.5 | |||||||||||||
Other current and noncurrent assets | 19.8 | |||||||||||||
Current liabilities | (36) | |||||||||||||
Deferred income taxes (noncurrent) | (54.3) | |||||||||||||
Long-term debt | (35.2) | |||||||||||||
Other long-term liabilities | $ (7) | |||||||||||||
Total consideration | $ 603.6 |
Acquisitions and Divestitures46
Acquisitions and Divestitures (Finite-lived intangible assets acquired) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 380.6 | $ 89.8 |
Accumulated amortization | (78.1) | (28.9) |
Net carrying amount | 302.5 | 60.9 |
Acquired and reacquired rights [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 308.6 | 36.8 |
Accumulated amortization | (52.5) | (10.1) |
Net carrying amount | 256.1 | 26.7 |
Licensing agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 13.4 | 0 |
Accumulated amortization | (1.1) | 0 |
Net carrying amount | 12.3 | $ 0 |
Starbucks Coffee Japan Ltd [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 289.3 | |
Accumulated amortization | (40.7) | |
Net carrying amount | 248.6 | |
Starbucks Coffee Japan Ltd [Member] | Acquired and reacquired rights [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 273.2 | |
Accumulated amortization | (39) | |
Net carrying amount | 234.2 | |
Starbucks Coffee Japan Ltd [Member] | Licensing agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 13.4 | |
Accumulated amortization | (1.1) | |
Net carrying amount | 12.3 | |
Starbucks Coffee Japan Ltd [Member] | Customer loyalty program [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2.7 | |
Accumulated amortization | (0.6) | |
Net carrying amount | $ 2.1 |
Acquisitions and Divestitures47
Acquisitions and Divestitures (Future Minimum Rental Payments) (Details) $ in Millions | Sep. 27, 2015USD ($) |
Business Acquisition [Line Items] | |
Total minimum future rental payments, operating leases | $ 5,669.5 |
Minimum future rental payments, lease financing arrangements, Year 1 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 2 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 3 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 4 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 5 | 3.2 |
Minimum future rental payments, lease financing arrangements, Thereafter | 31.1 |
Total minimum future rental payments, lease financing arrangements | 47.1 |
Starbucks Coffee Japan Ltd [Member] | |
Business Acquisition [Line Items] | |
Minimum future rental payments, operating leases, Year 1 | 83.7 |
Minimum future rental payments, operating leases, Year 2 | 66.5 |
Minimum future rental payments, operating leases, Year 3 | 49 |
Minimum future rental payments, operating leases, Year 4 | 37.5 |
Minimum future rental payments, operating leases, Year 5 | 30.3 |
Minimum future rental payments, operating leases, Thereafter | 129.4 |
Total minimum future rental payments, operating leases | 396.4 |
Minimum future rental payments, lease financing arrangements, Year 1 | 2.8 |
Minimum future rental payments, lease financing arrangements, Year 2 | 2.8 |
Minimum future rental payments, lease financing arrangements, Year 3 | 2.8 |
Minimum future rental payments, lease financing arrangements, Year 4 | 2.8 |
Minimum future rental payments, lease financing arrangements, Year 5 | 2.7 |
Minimum future rental payments, lease financing arrangements, Thereafter | 24.8 |
Total minimum future rental payments, lease financing arrangements | $ 38.7 |
Acquisitions and Divestitures48
Acquisitions and Divestitures (Effect of the change in Starbucks ownership interest in Starbucks Japan on Starbucks equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Net earnings attributable to Starbucks | $ 652.5 | $ 626.7 | $ 494.9 | $ 983.1 | $ 587.9 | $ 512.6 | $ 427 | $ 540.7 | $ 2,757.4 | $ 2,068.1 | $ 8.3 |
Increase/(decrease) in additional paid-in capital for purchase of interest in subsidiary | 1.7 | ||||||||||
Change from net earnings attributable to Starbucks and transfers (to)/from noncontrolling interest | $ 2,759.1 | 2,068.1 | |||||||||
Additional Paid-in Capital [Member] | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Increase/(decrease) in additional paid-in capital for purchase of interest in subsidiary | $ 0 |
Derivative Financial Instrume49
Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) $ in Millions, ¥ in Billions | Jul. 01, 2015USD ($) | Jun. 28, 2015USD ($) | Sep. 27, 2015USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 29, 2013USD ($) | Sep. 27, 2015JPY (¥) | Sep. 27, 2015USD ($) | Dec. 28, 2014USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Interest expense | $ (70.5) | $ (64.1) | $ (28.1) | |||||||
Gain resulting from acquisition of joint venture | 390.6 | 0 | $ 0 | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Investment Hedges [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Gain resulting from acquisition of joint venture | [1] | 7.2 | $ 0 | |||||||
Starbucks Coffee Japan Ltd [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Gain resulting from acquisition of joint venture | 390.6 | |||||||||
Preexisting ownership percentage | 39.50% | |||||||||
Starbucks Coffee Japan Ltd [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Investment Hedges [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Gain resulting from acquisition of joint venture | 7.2 | |||||||||
Two Point Seven Percentage Senior Notes [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Debt Instrument, Face Value | $ 0 | $ 500 | ||||||||
Stated Interest Rate | 2.70% | 2.70% | ||||||||
Debt Instrument, Maturity | Jun. 15, 2022 | |||||||||
Four Point Three Percentage Senior Notes [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Debt Instrument, Face Value | 0 | $ 350 | ||||||||
Stated Interest Rate | 4.30% | 4.30% | ||||||||
Debt Instrument, Maturity | Jun. 15, 2045 | |||||||||
Six Point Two Five Percentage Senior Notes [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Debt Instrument, Face Value | 550 | $ 0 | ||||||||
Stated Interest Rate | 6.25% | 6.25% | 6.25% | |||||||
Debt redemption, amount | $ 550 | |||||||||
Interest Rate Contract [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Derivative, Notional Amount | 0 | $ 125 | ||||||||
Interest Rate Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Interest expense | $ 2 | $ 3.2 | 5 | |||||||
Interest Rate Contract [Member] | Two Point Seven Percentage Senior Notes [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Derivative, Notional Amount | $ 250 | |||||||||
Interest Rate Contract [Member] | Four Point Three Percentage Senior Notes [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Derivative, Notional Amount | $ 250 | |||||||||
Cross-Currency Swap [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Derivative, Notional Amount | $ 0 | ¥ 86.5 | $ 717 | |||||||
[1] | (1) Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting 39.5% equity method investment in Starbucks Japan. |
Derivative Financial Instrume50
Derivative Financial Instruments (Gains and Losses on Derivative Contracts Designated as Hedging Instruments Included in AOCI and Expected to be Reclassified into Earnings Within 12 months, Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 30.1 | $ 36.4 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 3.5 | |
Contract Remaining Maturity (Months) | 4 months | |
Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (27.8) | 0 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Contract Remaining Maturity (Months) | 111 months | |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 29 | 10.6 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 19.2 | |
Contract Remaining Maturity (Months) | 35 months | |
Cash Flow Hedging [Member] | Coffee Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (5.7) | (0.7) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ (2.5) | |
Contract Remaining Maturity (Months) | 12 months | |
Net Investment Hedges [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 1.3 | $ 3.2 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 months | $ 0 | |
Contract Remaining Maturity (Months) | 0 months |
Derivative Financial Instrume51
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Designated as Hedging Instruments Recognized in OCI and Reclassifications from AOCI to Earnings) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in OCI Before Reclassifications | $ (6.8) | $ 0.5 |
Gains/(Losses) Reclassified from AOCI to Earnings | 3.2 | 5 |
Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in OCI Before Reclassifications | 11.4 | 0 |
Gains/(Losses) Reclassified from AOCI to Earnings | 46.2 | 0 |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in OCI Before Reclassifications | 52 | 24 |
Gains/(Losses) Reclassified from AOCI to Earnings | 26.1 | 8 |
Cash Flow Hedging [Member] | Coffee Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in OCI Before Reclassifications | (9) | (0.4) |
Gains/(Losses) Reclassified from AOCI to Earnings | (3.5) | (13.1) |
Net Investment Hedges [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in OCI Before Reclassifications | 4.3 | 25.5 |
Gains/(Losses) Reclassified from AOCI to Earnings | $ 7.2 | $ 0 |
Derivative Financial Instrume52
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Foreign Currency Contract - Other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(Losses) Recognized in Earnings | $ 27.1 | $ 1.7 |
Coffee Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(Losses) Recognized in Earnings | (0.2) | 0 |
Dairy Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(Losses) Recognized in Earnings | (3.8) | 12.6 |
Diesel Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(Losses) Recognized in Earnings | $ (9) | $ (1) |
Derivative Financial Instrume53
Derivative Financial Instruments (Notional Amounts of Outstanding Derivative Contracts) (Details) $ in Millions, ¥ in Billions | Sep. 27, 2015JPY (¥) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) |
Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Notional amounts of outstanding derivative contracts | $ 125 | $ 0 | |
Cross-Currency Swap [Member] | |||
Derivative [Line Items] | |||
Notional amounts of outstanding derivative contracts | ¥ 86.5 | 717 | 0 |
Foreign Currency Contract - Other [Member] | |||
Derivative [Line Items] | |||
Notional amounts of outstanding derivative contracts | 577 | 542 | |
Coffee Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amounts of outstanding derivative contracts | 38 | 45 | |
Dairy Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amounts of outstanding derivative contracts | 43 | 24 | |
Diesel Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amounts of outstanding derivative contracts | $ 14 | $ 17 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Available-for-sale Securities [Abstract] | |||
Proceeds from sale of available-for-sale securities | $ 600.6 | $ 1,454.8 | $ 60.2 |
Trading Securities [Abstract] | |||
Management Deferred Compensation Plan liability | 98.3 | 106.4 | |
Trading securities, change in net unrealized holding gain (loss) | $ (4.5) | $ 1.2 | $ 11.7 |
Maximum [Member] | |||
Available-for-sale Securities [Abstract] | |||
Long-term investments, contractual maturity period | 4 years |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Assets [Abstract] | ||
Total short-term investments | $ 81.3 | $ 135.4 |
Long-term investments: Available-for-sale securities | 312.5 | 318.4 |
Total assets | 2,029.4 | 2,208.9 |
Liabilities [Abstract] | ||
Total liabilities | 33.7 | |
Cash and cash equivalents [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 1,530.1 | 1,708.4 |
Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 15.5 | 63.2 |
Short-term investments: Trading securities | 65.8 | 72.2 |
Total short-term investments | 81.3 | 135.4 |
Prepaid expenses and other current assets [Member] | ||
Assets [Abstract] | ||
Prepaid expenses and other current assets: Derivative assets | 50.8 | 28.7 |
Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 312.5 | 318.4 |
Other long-term assets [Member] | ||
Assets [Abstract] | ||
Other long-term assets: Derivative assets | 54.7 | 18 |
Accrued liabilities [Member] | ||
Liabilities [Abstract] | ||
Accrued liabilities: Derivative liabilities | 19.2 | 2.4 |
Other long-term liabilities [Member] | ||
Liabilities [Abstract] | ||
Other long-term liabilities: Derivative liabilities | 14.5 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Total assets | 1,700.7 | 1,887.2 |
Liabilities [Abstract] | ||
Total liabilities | 3.6 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Cash and cash equivalents [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 1,530.1 | 1,708.4 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 10.9 |
Short-term investments: Trading securities | 65.8 | 72.2 |
Total short-term investments | 65.8 | 83.1 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Prepaid expenses and other current assets [Member] | ||
Assets [Abstract] | ||
Prepaid expenses and other current assets: Derivative assets | 0 | 0.9 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 104.8 | 94.8 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Other long-term assets [Member] | ||
Assets [Abstract] | ||
Other long-term assets: Derivative assets | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Accrued liabilities [Member] | ||
Liabilities [Abstract] | ||
Accrued liabilities: Derivative liabilities | 3.6 | 0.4 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Other long-term liabilities [Member] | ||
Liabilities [Abstract] | ||
Other long-term liabilities: Derivative liabilities | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Total assets | 322.8 | 307.9 |
Liabilities [Abstract] | ||
Total liabilities | 30.1 | |
Significant Other Observable Inputs (Level 2) [Member] | Cash and cash equivalents [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 15.5 | 52.3 |
Short-term investments: Trading securities | 0 | 0 |
Total short-term investments | 15.5 | 52.3 |
Significant Other Observable Inputs (Level 2) [Member] | Prepaid expenses and other current assets [Member] | ||
Assets [Abstract] | ||
Prepaid expenses and other current assets: Derivative assets | 50.8 | 27.8 |
Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 201.8 | 209.8 |
Significant Other Observable Inputs (Level 2) [Member] | Other long-term assets [Member] | ||
Assets [Abstract] | ||
Other long-term assets: Derivative assets | 54.7 | 18 |
Significant Other Observable Inputs (Level 2) [Member] | Accrued liabilities [Member] | ||
Liabilities [Abstract] | ||
Accrued liabilities: Derivative liabilities | 15.6 | 2 |
Significant Other Observable Inputs (Level 2) [Member] | Other long-term liabilities [Member] | ||
Liabilities [Abstract] | ||
Other long-term liabilities: Derivative liabilities | 14.5 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Total assets | 5.9 | 13.8 |
Liabilities [Abstract] | ||
Total liabilities | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Cash and cash equivalents [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 0 |
Short-term investments: Trading securities | 0 | 0 |
Total short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Prepaid expenses and other current assets [Member] | ||
Assets [Abstract] | ||
Prepaid expenses and other current assets: Derivative assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 5.9 | 13.8 |
Significant Unobservable Inputs (Level 3) [Member] | Other long-term assets [Member] | ||
Assets [Abstract] | ||
Other long-term assets: Derivative assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Accrued liabilities [Member] | ||
Liabilities [Abstract] | ||
Accrued liabilities: Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Other long-term liabilities [Member] | ||
Liabilities [Abstract] | ||
Other long-term liabilities: Derivative liabilities | 0 | |
Agency obligations [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 8.6 | 8.9 |
Agency obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Agency obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 8.6 | 8.9 |
Agency obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Corporate debt securities [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 10.2 | 4.9 |
Corporate debt securities [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 121.8 | 130.9 |
Corporate debt securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 0 |
Corporate debt securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Corporate debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 10.2 | 4.9 |
Corporate debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 121.8 | 130.9 |
Corporate debt securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 0 |
Corporate debt securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Auction rate securities [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 5.9 | 13.8 |
Auction rate securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Auction rate securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Auction rate securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 5.9 | 13.8 |
Foreign government obligations [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 2 | 33.7 |
Foreign government obligations [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 18.5 | 17.4 |
Foreign government obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 0 |
Foreign government obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Foreign government obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 2 | 33.7 |
Foreign government obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 18.5 | 17.4 |
Foreign government obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 0 |
Foreign government obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
U.S. government treasury securities [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 10.9 | |
U.S. government treasury securities [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 104.8 | 94.8 |
U.S. government treasury securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 10.9 | |
U.S. government treasury securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 104.8 | 94.8 |
U.S. government treasury securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | |
U.S. government treasury securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
U.S. government treasury securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | |
U.S. government treasury securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
State and local government obligations [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 3.3 | 12.7 |
State and local government obligations [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 9.7 | 6.7 |
State and local government obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 0 |
State and local government obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
State and local government obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 3.3 | 12.7 |
State and local government obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 9.7 | 6.7 |
State and local government obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | 0 |
State and local government obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Certificates of deposit [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 1 | |
Certificates of deposit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | |
Certificates of deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 1 | |
Certificates of deposit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term investments [Member] | ||
Assets [Abstract] | ||
Short-term investments: Available-for-sale securities | 0 | |
Mortgage and other asset-backed securities [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 43.2 | 45.9 |
Mortgage and other asset-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 0 | 0 |
Mortgage and other asset-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | 43.2 | 45.9 |
Mortgage and other asset-backed securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term investments [Member] | ||
Assets [Abstract] | ||
Long-term investments: Available-for-sale securities | $ 0 | $ 0 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) $ in Millions | 3 Months Ended |
Sep. 27, 2015USD ($) | |
Fixed Price Contracts [Member] | |
Inventory [Line Items] | |
Amount of coffee committed to be purchased | $ 819 |
Price-to-be-fixed Contracts [Member] | |
Inventory [Line Items] | |
Amount of coffee committed to be purchased | 266 |
Future [Member] | Price-to-be-fixed Contracts [Member] | |
Inventory [Line Items] | |
Notional amounts of outstanding derivative contracts | $ 38 |
Inventories (Components of Inve
Inventories (Components of Inventories) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Inventory Disclosure [Abstract] | ||
Unroasted coffee | $ 529.4 | $ 432.3 |
Roasted coffee | 279.7 | 238.9 |
Other merchandise held for sale | 318.3 | 265.7 |
Packaging and other supplies | 179 | 154 |
Total | $ 1,306.4 | $ 1,090.9 |
Equity and Cost Investments (Eq
Equity and Cost Investments (Equity Method Investments) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 28, 2014 | Sep. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 469.3 | $ 306.4 | $ 469.3 | ||
Revenues generated from related parties | 153.4 | 219.2 | $ 205.1 | ||
Related costs of sales | 94.5 | 121.2 | $ 115.4 | ||
Accounts receivables from equity method investees | $ 54.9 | $ 36.7 | $ 54.9 | ||
President Starbucks Coffee (Shanghai) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 50.00% | ||||
Starbucks Coffee Korea Co., Ltd. [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 50.00% | ||||
President Starbucks Coffee Corporation (Taiwan) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 50.00% | ||||
Tata Starbucks Limited (India) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 50.00% | ||||
Starbucks Spain [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 49.00% | 49.00% | 49.00% | ||
Payments to acquire equity method investments | $ 33 | ||||
North American Coffee Partnership [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 50.00% | ||||
Berjaya Starbucks Coffee Company Sdn. Bhd. (Malaysia) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 50.00% | 50.00% | |||
Proceeds from sale of equity method investments | $ 88 | ||||
Gain on sale of investments | $ 67.8 | ||||
Starbucks Coffee Japan Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Preexisting ownership percentage | 39.50% | 39.50% | |||
Remaining Ownership Interest in Equity Method Investee to be Acquired | 60.50% | 60.50% |
Equity and Cost Investments (Co
Equity and Cost Investments (Cost Method Investments) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 29, 2013 | Mar. 31, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | |
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investments | $ 45.6 | $ 45.6 | ||
Company Store Investees [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investments | 19 | |||
Square Preferred Shares [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investments | $ 25 | |||
Argentina Joint Venture | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Ownership interest in joint venture sold | 18.00% | |||
Proceeds from divestiture of interest in joint venture | $ 4.4 | |||
Gain/(loss) on sale of joint venture | $ (1) | |||
Mexico Joint Venture [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Ownership interest in joint venture sold | 18.00% | |||
Proceeds from divestiture of interest in joint venture | $ 50.3 | |||
Gain/(loss) on sale of joint venture | $ 35.2 |
Equity and Cost Investments (60
Equity and Cost Investments (Equity and Cost Investments) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method investments | $ 306.4 | $ 469.3 |
Cost method investments | 45.6 | 45.6 |
Total | $ 352 | $ 514.9 |
Equity and Cost Investments (Su
Equity and Cost Investments (Summarized Combined Financial Information of Equity Method Investees) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Current assets | $ 402.8 | $ 701.3 | |
Noncurrent assets | 578.8 | 873.9 | |
Current liabilities | 490 | 615.6 | |
Noncurrent liabilities | 38.7 | 79.1 | |
Net revenues | 2,688 | 3,461.3 | $ 3,018.7 |
Operating income | 426.4 | 467.7 | 434.8 |
Net earnings | $ 392.1 | $ 382.6 | $ 358 |
Supplemental Balance Sheet In62
Supplemental Balance Sheet Information (Property, Plant and Equipment, net) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,641.8 | $ 8,581.1 |
Accumulated depreciation | (5,553.5) | (5,062.1) |
Property, plant and equipment, net | 4,088.3 | 3,519 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46.6 | 46.7 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 411.5 | 278.1 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,409.6 | 4,858.4 |
Store equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,707.5 | 1,493.3 |
Roasting equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 542.4 | 410.9 |
Furniture, fixtures and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,281.7 | 1,078.1 |
Work in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 242.5 | $ 415.6 |
Supplemental Balance Sheet In63
Supplemental Balance Sheet Information (Accrued Liabilities) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and related costs | $ 522.3 | $ 437.9 |
Accrued occupancy costs | 137.2 | 119.8 |
Accrued taxes | 259 | 272 |
Accrued dividends payable | 297 | 239.8 |
Other | 545.2 | 444.9 |
Total accrued liabilities | $ 1,760.7 | $ 1,514.4 |
Other Intangible Assets and G64
Other Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for finite-lived intangible assets | $ 50 | $ 8.7 | $ 7.7 |
Other Intangible Assets and G65
Other Intangible Assets and Goodwill (Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 217.9 | $ 212.6 |
Trade Names, trademarks and patents [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 202.8 | 197.5 |
Other indefinite-lived intangible assets [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 15.1 | $ 15.1 |
Other Intangible Assets and G66
Other Intangible Assets and Goodwill (Changes In Carrying Amount Of Goodwill By Reportable Operating Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | ||
Goodwill [Line Items] | |||
Goodwill prior to impairment, beginning balance | $ 865.6 | $ 871.5 | |
Accumulated impairment charges, beginning balance | (9.4) | (8.6) | |
Goodwill, beginning balance | 856.2 | 862.9 | |
Acquisition/(divestiture) | 813.1 | ||
Impairment | (0.5) | (0.8) | |
Other | [1] | (93.4) | (5.9) |
Goodwill prior to impairment, ending balance | 1,585.3 | 865.6 | |
Accumulated impairment charges, ending balance | (9.9) | (9.4) | |
Goodwill, ending balance | 1,575.4 | 856.2 | |
Americas [Member] | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment, beginning balance | 227.6 | 230.2 | |
Accumulated impairment charges, beginning balance | (8.6) | (8.6) | |
Goodwill, beginning balance | 219 | 221.6 | |
Acquisition/(divestiture) | (2.5) | ||
Impairment | 0 | 0 | |
Other | [1] | (5.3) | (2.6) |
Goodwill prior to impairment, ending balance | 219.8 | 227.6 | |
Accumulated impairment charges, ending balance | (8.6) | (8.6) | |
Goodwill, ending balance | 211.2 | 219 | |
China/Asia Pacific [Member] | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment, beginning balance | 74.9 | 75.1 | |
Accumulated impairment charges, beginning balance | 0 | 0 | |
Goodwill, beginning balance | 74.9 | 75.1 | |
Acquisition/(divestiture) | 815.6 | ||
Impairment | 0 | 0 | |
Other | [1] | (86.4) | (0.2) |
Goodwill prior to impairment, ending balance | 804.1 | 74.9 | |
Accumulated impairment charges, ending balance | 0 | 0 | |
Goodwill, ending balance | 804.1 | 74.9 | |
EMEA [Member] | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment, beginning balance | 59.1 | 62.2 | |
Accumulated impairment charges, beginning balance | 0 | 0 | |
Goodwill, beginning balance | 59.1 | 62.2 | |
Acquisition/(divestiture) | 0 | ||
Impairment | 0 | 0 | |
Other | [1] | (1.7) | (3.1) |
Goodwill prior to impairment, ending balance | 57.4 | 59.1 | |
Accumulated impairment charges, ending balance | 0 | 0 | |
Goodwill, ending balance | 57.4 | 59.1 | |
Channel Development [Member] | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment, beginning balance | 23.8 | 23.8 | |
Accumulated impairment charges, beginning balance | 0 | 0 | |
Goodwill, beginning balance | 23.8 | 23.8 | |
Acquisition/(divestiture) | 0 | ||
Impairment | 0 | 0 | |
Other | [1] | 0 | 0 |
Goodwill prior to impairment, ending balance | 23.8 | 23.8 | |
Accumulated impairment charges, ending balance | 0 | 0 | |
Goodwill, ending balance | 23.8 | 23.8 | |
All Other Segments [Member] | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment, beginning balance | 480.2 | 480.2 | |
Accumulated impairment charges, beginning balance | (0.8) | 0 | |
Goodwill, beginning balance | 479.4 | 480.2 | |
Acquisition/(divestiture) | 0 | ||
Impairment | (0.5) | (0.8) | |
Other | [1] | 0 | 0 |
Goodwill prior to impairment, ending balance | 480.2 | 480.2 | |
Accumulated impairment charges, ending balance | (1.3) | (0.8) | |
Goodwill, ending balance | $ 478.9 | $ 479.4 | |
[1] | Other is primarily comprised of changes in the goodwill balance as a result of foreign currency translation. |
Other Intangible Assets and G67
Other Intangible Assets and Goodwill (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 380.6 | $ 89.8 |
Accumulated amortization | (78.1) | (28.9) |
Net Carrying Amount | 302.5 | 60.9 |
Acquired and reacquired rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 308.6 | 36.8 |
Accumulated amortization | (52.5) | (10.1) |
Net Carrying Amount | 256.1 | 26.7 |
Acquired trade secrets and processes [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 27.6 | 27.6 |
Accumulated amortization | (8.2) | (5.4) |
Net Carrying Amount | 19.4 | 22.2 |
Licensing agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 13.4 | 0 |
Accumulated amortization | (1.1) | 0 |
Net Carrying Amount | 12.3 | 0 |
Trade Names, trademarks and patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 24.5 | 21.6 |
Accumulated amortization | (13) | (11.6) |
Net Carrying Amount | 11.5 | 10 |
Other finite-lived intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 6.5 | 3.8 |
Accumulated amortization | (3.3) | (1.8) |
Net Carrying Amount | $ 3.2 | $ 2 |
Other Intangible Assets and G68
Other Intangible Assets and Goodwill (Estimated Future Amortization Expense) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 53.2 | |
2,017 | 52.9 | |
2,018 | 51.5 | |
2,019 | 51.2 | |
2,020 | 51.1 | |
Thereafter | 42.6 | |
Net Carrying Amount | $ 302.5 | $ 60.9 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Jul. 01, 2015 | Jun. 28, 2015 | Dec. 29, 2013 | Sep. 29, 2013 | Sep. 27, 2015 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 |
Loss on extinguishment of debt | $ (61.1) | $ 0 | $ 0 | |||||
Interest expense | (70.5) | (64.1) | (28.1) | |||||
Interest expense, net of interest capitalized | 70.5 | 64.1 | 28.1 | |||||
Interest capitalized | 3.6 | 6.2 | 10.4 | |||||
Revolving Credit Facility [Member] | ||||||||
Unsecured revolving credit facility | $ 750 | 750 | ||||||
Amount of credit facility available for issuances of letters of credit | 150 | $ 150 | ||||||
Maturity date of credit facility | Jan. 21, 2020 | |||||||
Maximum increase in commitment amount allowable under the credit facility | 750 | $ 750 | ||||||
Line of credit covenant compliance | As of September 27, 2015, we were in compliance with all applicable covenants. | |||||||
Amount outstanding under credit facility | $ 0 | 0 | ||||||
Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | ||||||||
Incremental interest rate over variable rate loans | 0.565% | |||||||
Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||
Incremental interest rate over variable rate loans | 0.00% | |||||||
Senior Notes [Member] | ||||||||
Long-term debt, covenant compliance | The indentures under which the above notes were issued also require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of September 27, 2015, we were in compliance with each of these covenants. | |||||||
Commercial Paper [Member] | ||||||||
Maximum allowable aggregate amount outstanding under Commercial Paper Program | 1,000 | $ 1,000 | ||||||
Combined borrowing limit of Commercial Paper Program and Credit Facility | 750 | 750 | ||||||
Commercial paper borrowings | 93 | |||||||
Borrowings outstanding under commercial paper program | 0 | $ 0 | 0 | |||||
Commercial Paper [Member] | Maximum [Member] | ||||||||
Maximum allowable maturity period of credit under Commercial Paper Program | 397 days | |||||||
Point Eight Seven Five Percentage Senior Notes [Member] | ||||||||
Face value of Senior Notes | $ 400 | $ 400 | 400 | |||||
Stated Interest Rate | 0.875% | 0.875% | ||||||
Point Eight Seven Five Percentage Senior Notes [Member] | Senior Notes [Member] | ||||||||
Issuance date of Senior Notes | Dec. 2, 2013 | |||||||
Maturity date of Senior Notes | Dec. 5, 2016 | |||||||
Face value of Senior Notes | $ 400 | |||||||
Stated Interest Rate | 0.875% | |||||||
Six Point Two Five Percentage Senior Notes [Member] | ||||||||
Debt redemption, amount | $ 550 | |||||||
Loss on extinguishment of debt | $ (61.1) | |||||||
Face value of Senior Notes | $ 0 | $ 0 | 550 | |||||
Stated Interest Rate | 6.25% | 6.25% | 6.25% | |||||
Two Point Zero Percentage Senior Notes [Member] | ||||||||
Face value of Senior Notes | $ 350 | $ 350 | 350 | |||||
Stated Interest Rate | 2.00% | 2.00% | ||||||
Two Point Zero Percentage Senior Notes [Member] | Senior Notes [Member] | ||||||||
Issuance date of Senior Notes | Dec. 2, 2013 | |||||||
Maturity date of Senior Notes | Dec. 5, 2018 | |||||||
Face value of Senior Notes | $ 350 | |||||||
Stated Interest Rate | 2.00% | |||||||
Two Point Seven Percentage Senior Notes [Member] | ||||||||
Maturity date of Senior Notes | Jun. 15, 2022 | |||||||
Face value of Senior Notes | $ 500 | $ 500 | 0 | |||||
Stated Interest Rate | 2.70% | 2.70% | ||||||
Two Point Seven Percentage Senior Notes [Member] | Senior Notes [Member] | ||||||||
Issuance date of Senior Notes | Jun. 1, 2015 | |||||||
Face value of Senior Notes | $ 500 | |||||||
Stated Interest Rate | 2.70% | |||||||
Three Point Eight Five Percentage Senior Notes [Member] | ||||||||
Face value of Senior Notes | $ 750 | $ 750 | 750 | |||||
Stated Interest Rate | 3.85% | 3.85% | ||||||
Three Point Eight Five Percentage Senior Notes [Member] | Senior Notes [Member] | ||||||||
Issuance date of Senior Notes | Sep. 6, 2013 | |||||||
Maturity date of Senior Notes | Oct. 1, 2023 | |||||||
Face value of Senior Notes | $ 750 | $ 750 | ||||||
Stated Interest Rate | 3.85% | 3.85% | ||||||
Four Point Three Percentage Senior Notes [Member] | ||||||||
Maturity date of Senior Notes | Jun. 15, 2045 | |||||||
Face value of Senior Notes | $ 350 | $ 350 | 0 | |||||
Stated Interest Rate | 4.30% | 4.30% | ||||||
Four Point Three Percentage Senior Notes [Member] | Senior Notes [Member] | ||||||||
Face value of Senior Notes | $ 350 | |||||||
Stated Interest Rate | 4.30% | |||||||
Cash Flow Hedges [Member] | Interest Rate Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Interest expense | $ 2 | $ 3.2 | $ 5 |
Debt (Components of Long-Term D
Debt (Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Jul. 01, 2015 | Sep. 28, 2014 |
Debt Instrument [Line Items] | |||
Total, Face Value | $ 2,350 | $ 2,050 | |
Aggregate unamortized discount | 2.5 | 1.7 | |
Total, Estimated Fair Value | 2,402 | 2,164 | |
Total, Carrying Value, net of aggregate unamortized discount | 2,347.5 | 2,048.3 | |
Point Eight Seven Five Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Value | $ 400 | 400 | |
Stated Interest Rate | 0.875% | ||
Effective Interest Rate | 0.941% | ||
Six Point Two Five Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Value | $ 0 | 550 | |
Stated Interest Rate | 6.25% | 6.25% | |
Effective Interest Rate | 0.00% | ||
Two Point Zero Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Value | $ 350 | 350 | |
Stated Interest Rate | 2.00% | ||
Effective Interest Rate | 2.012% | ||
Two Point Seven Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Value | $ 500 | 0 | |
Stated Interest Rate | 2.70% | ||
Effective Interest Rate | 2.819% | ||
Three Point Eight Five Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Value | $ 750 | 750 | |
Stated Interest Rate | 3.85% | ||
Effective Interest Rate | 2.86% | ||
Four Point Three Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Value | $ 350 | 0 | |
Stated Interest Rate | 4.30% | ||
Effective Interest Rate | 4.348% | ||
Fair Value, Inputs, Level 2 [Member] | Point Eight Seven Five Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Estimated Fair Value | $ 400 | 400 | |
Fair Value, Inputs, Level 2 [Member] | Six Point Two Five Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Estimated Fair Value | 0 | 625 | |
Fair Value, Inputs, Level 2 [Member] | Two Point Zero Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Estimated Fair Value | 354 | 353 | |
Fair Value, Inputs, Level 2 [Member] | Two Point Seven Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Estimated Fair Value | 503 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Three Point Eight Five Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Estimated Fair Value | 790 | 786 | |
Fair Value, Inputs, Level 2 [Member] | Four Point Three Percentage Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Estimated Fair Value | $ 355 | $ 0 |
Debt Debt (Summary of long-term
Debt Debt (Summary of long-term debt maturities) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 0 | |
2,017 | 400 | |
2,018 | 0 | |
2,019 | 350 | |
2,020 | 0 | |
Thereafter | 1,600 | |
Total | $ 2,350 | $ 2,050 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Leases [Abstract] | |||
Sublease income recognized | $ 11.9 | $ 13.3 | $ 9.3 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 9,641.8 | 8,581.1 | |
Accumulated depreciation | 5,553.5 | $ 5,062.1 | |
Assets Held under Financing Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 66.8 | ||
Accumulated depreciation | $ 2.5 |
Leases (Rent Expense Under Oper
Leases (Rent Expense Under Operating Lease Agreements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Leases [Abstract] | |||
Minimum rent | $ 1,026.3 | $ 907.4 | $ 838.3 |
Contingent rent | 111.5 | 66.8 | 56.4 |
Total | $ 1,137.8 | $ 974.2 | $ 894.7 |
Leases (Minimum Future Rental P
Leases (Minimum Future Rental Payments Under Non-Cancelable Operating Leases and Lease Financing Arrangements) (Details) $ in Millions | Sep. 27, 2015USD ($) |
Leases [Abstract] | |
Minimum future rental payments, operating leases, Year 1 | $ 1,032.4 |
Minimum future rental payments, operating leases, Year 2 | 892.5 |
Minimum future rental payments, operating leases, Year 3 | 739.8 |
Minimum future rental payments, operating leases, Year 4 | 624 |
Minimum future rental payments, operating leases, Year 5 | 548.9 |
Minimum future rental payments, operating leases, Thereafter | 1,831.9 |
Total minimum future rental payments, operating leases | 5,669.5 |
Minimum future rental payments, lease financing arrangements, Year 1 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 2 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 3 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 4 | 3.2 |
Minimum future rental payments, lease financing arrangements, Year 5 | 3.2 |
Minimum future rental payments, lease financing arrangements, Thereafter | 31.1 |
Total minimum future rental payments, lease financing arrangements | $ 47.1 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) $ / shares in Units, $ in Millions | Apr. 09, 2015$ / shares | Sep. 27, 2015USD ($)$ / sharesshares | Sep. 28, 2014USD ($)$ / sharesshares | Jul. 23, 2015shares |
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||
Increase of shares to ongoing share repurchase authorization | 50,000,000 | |||
Authorized shares of common stock | 2,400,000,000 | 2,400,000,000 | ||
Authorized shares of preferred stock | 7,500,000 | |||
Outstanding shares of preferred stock | 0 | |||
Increase in share of net assets of Starbucks Japan at IPO | $ | $ 39.4 | $ 39.4 | ||
Other Additional Capital related to difference between carrying value of noncontrolling interest and cash paid to acquire the noncontrolling interest | $ | $ 1.7 | |||
Shares of common stock repurchased | 29,000,000 | 21,000,000 | ||
Total cost of common stock repurchased | $ | $ 1,400 | $ 769.8 | ||
Shares available for repurchase | 52,700,000 | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ / shares | $ 0.001 |
Equity (Dividends Declared) (De
Equity (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | |
Equity [Abstract] | ||||||||
Dividend per share | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.13 | $ 0.13 | $ 0.13 | |
Dividend payable per share | $ 0.2 | |||||||
Record date | Nov. 12, 2015 | Aug. 6, 2015 | May 7, 2015 | Feb. 5, 2015 | Nov. 13, 2014 | Aug. 7, 2014 | May 8, 2014 | Feb. 6, 2014 |
Total amount | $ 297 | $ 239 | $ 240.1 | $ 240.1 | $ 239.8 | $ 195.3 | $ 195.5 | $ 196.4 |
Payment date | Nov. 27, 2015 | Aug. 21, 2015 | May 22, 2015 | Feb. 20, 2015 | Nov. 28, 2014 | Aug. 22, 2014 | May 23, 2014 | Feb. 21, 2014 |
Equity (Changes in Components O
Equity (Changes in Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gains/(losses) in AOCI, beginning of period | $ 25.3 | ||
Other comprehensive income/(loss) | (224.7) | $ (41.7) | $ 44.3 |
Net gains/(losses) in AOCI, end of period | (199.4) | 25.3 | |
Available-for-sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gains/(losses) in AOCI, beginning of period | (0.4) | (0.5) | |
Net gains/(losses) recognized in OCI before reclassifications, net of tax | 0.9 | 1 | |
Net (gains)/losses reclassified from AOCI to earnings, net of tax | (0.6) | (0.9) | |
Other comprehensive income/(loss) | 0.3 | 0.1 | |
Purchase of noncontrolling interest | 0 | ||
Net gains/(losses) in AOCI, end of period | (0.1) | (0.4) | (0.5) |
Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gains/(losses) in AOCI, beginning of period | 46.3 | 26.8 | |
Net gains/(losses) recognized in OCI before reclassifications, net of tax | 30.8 | 16.3 | |
Net (gains)/losses reclassified from AOCI to earnings, net of tax | (51.5) | 3.2 | |
Other comprehensive income/(loss) | (20.7) | 19.5 | |
Purchase of noncontrolling interest | 0 | ||
Net gains/(losses) in AOCI, end of period | 25.6 | 46.3 | 26.8 |
Net Investment Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gains/(losses) in AOCI, beginning of period | 3.2 | (12.9) | |
Net gains/(losses) recognized in OCI before reclassifications, net of tax | 2.7 | 16.1 | |
Net (gains)/losses reclassified from AOCI to earnings, net of tax | (4.6) | 0 | |
Other comprehensive income/(loss) | (1.9) | 16.1 | |
Purchase of noncontrolling interest | 0 | ||
Net gains/(losses) in AOCI, end of period | 1.3 | 3.2 | (12.9) |
Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gains/(losses) in AOCI, beginning of period | (23.8) | 53.6 | |
Net gains/(losses) recognized in OCI before reclassifications, net of tax | (185.6) | (77.4) | |
Net (gains)/losses reclassified from AOCI to earnings, net of tax | 14.3 | 0 | |
Other comprehensive income/(loss) | (171.3) | (77.4) | |
Purchase of noncontrolling interest | 31.1 | ||
Net gains/(losses) in AOCI, end of period | (226.2) | (23.8) | 53.6 |
Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gains/(losses) in AOCI, beginning of period | 25.3 | 67 | |
Net gains/(losses) recognized in OCI before reclassifications, net of tax | (151.2) | (44) | |
Net (gains)/losses reclassified from AOCI to earnings, net of tax | (42.4) | 2.3 | |
Other comprehensive income/(loss) | (193.6) | (41.7) | 44.3 |
Purchase of noncontrolling interest | 31.1 | ||
Net gains/(losses) in AOCI, end of period | $ (199.4) | $ 25.3 | $ 67 |
Equity (Impact of Reclassificat
Equity (Impact of Reclassifications from Accumulated Other Comprehensive Income on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Interest expense | $ (70.5) | $ (64.1) | $ (28.1) | |||||||||
Amounts Reclassified from AOCI, Interest income and other, net | 43 | 142.7 | 123.6 | |||||||||
Amounts Reclassified from AOCI, Revenue | $ 4,914.8 | $ 4,881.2 | $ 4,563.5 | $ 4,803.2 | $ 4,180.8 | $ 4,153.7 | $ 3,873.8 | $ 4,239.6 | 19,162.7 | 16,447.8 | 14,866.8 | |
Amounts Reclassified from AOCI, Cost of sales including occupancy costs | (7,787.5) | (6,858.8) | (6,382.3) | |||||||||
Gain resulting from acquisition of joint venture | 390.6 | 0 | 0 | |||||||||
Amounts Reclassified from AOCI, Tax (expense)/benefit | (1,143.7) | (1,092) | $ 238.7 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified, from AOCI, Total before tax | 64.9 | 0.1 | ||||||||||
Amounts Reclassified from AOCI, Tax (expense)/benefit | (23.1) | (3.3) | ||||||||||
Amounts Reclassified from AOCI, Net of tax | 41.8 | (3.2) | ||||||||||
Net Investment Hedges [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Net of tax | (4.6) | 0 | ||||||||||
Net Investment Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Gain resulting from acquisition of joint venture | [1] | 7.2 | 0 | |||||||||
Translation Adjustment [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Net of tax | 14.3 | 0 | ||||||||||
Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Interest income and other, net | [2] | (7.1) | 0 | |||||||||
Gain resulting from acquisition of joint venture | [2] | (7.2) | 0 | |||||||||
Interest Rate Contract [Member] | Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Interest expense | $ 2 | 3.2 | 5 | |||||||||
Cross-Currency Swap [Member] | Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Interest income and other, net | 46.2 | 0 | ||||||||||
Foreign Currency Contract - Other [Member] | Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Revenue | 14 | 5.1 | ||||||||||
Foreign Currency and Coffee Contracts [Member] | Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amounts Reclassified from AOCI, Cost of sales including occupancy costs | 8.6 | $ (10) | ||||||||||
Starbucks Coffee Japan Ltd [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Gain resulting from acquisition of joint venture | 390.6 | |||||||||||
Preexisting ownership percentage | 39.50% | 39.50% | ||||||||||
Starbucks Coffee Japan Ltd [Member] | Net Investment Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Gain resulting from acquisition of joint venture | $ 7.2 | |||||||||||
[1] | (1) Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting 39.5% equity method investment in Starbucks Japan. | |||||||||||
[2] | (2) Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign business. |
Employee Stock and Benefit Pl79
Employee Stock and Benefit Plans (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | Apr. 09, 2015$ / shares | Sep. 27, 2015USD ($)$ / sharesshares | Sep. 28, 2014USD ($)$ / shares | Sep. 29, 2013USD ($)$ / shares |
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||
Maximum permitted contribution to Employee Stock Purchase Plan, percent | 10.00% | |||
Discounted stock purchase price, percent of market value | 95.00% | |||
Number of shares issued under plan | shares | 0.5 | |||
Matching contributions | $ 70.9 | $ 73 | $ 54.7 | |
Stock Options and Restricted Stock Units [Member] | ||||
Common stock available for issuance | shares | 96.3 | |||
Employee Stock [Member] | ||||
Common stock available for issuance | shares | 14.3 | |||
Stock Options [Member] | ||||
Award expiration period (years) | 10 years | |||
Total unrecognized stock-based compensation expense, net of estimated forfeitures | $ 32 | |||
Weighted average recognition period for total unrecognized stock-based compensation expense (in years) | 2 years 7 months 3 days | |||
Total intrinsic value of stock options exercised | $ 358 | 258 | 539 | |
Total fair value of options vested | 36 | $ 44 | $ 56 | |
Restricted Stock Units (RSUs) [Member] | ||||
Total unrecognized stock-based compensation expense, net of estimated forfeitures | $ 126 | |||
Weighted average recognition period for total unrecognized stock-based compensation expense (in years) | 2 years 3 months 3 days | |||
Granted, weighted average grant date fair value per share | $ / shares | $ 38.56 | $ 40.07 | $ 25.12 | |
Total fair value of RSUs vested | $ 137 | $ 103 | $ 104 | |
Director [Member] | Stock Options [Member] | Minimum [Member] | ||||
Award vesting period for non-employee directors (years) | 1 year | |||
Director [Member] | Stock Options [Member] | Maximum [Member] | ||||
Award vesting period for non-employee directors (years) | 3 years | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ / shares | $ 0.001 |
Employee Stock and Benefit Pl80
Employee Stock and Benefit Plans (Stock-Based Compensation Expense Recognized in the Consolidated Financial Statements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 209.8 | $ 183.2 | $ 142.3 |
Total related tax benefit | 72.3 | 63.4 | 49.8 |
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets | 1.9 | 1.9 | 1.8 |
Stock Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 37.8 | 41.8 | 37.1 |
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 172 | $ 141.4 | $ 105.2 |
Employee Stock and Benefit Pl81
Employee Stock and Benefit Plans (Employee Stock Options Granted During the Period, Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected term (in years) | 4 years 2 months 26 days | 4 years 6 months | 4 years 9 months 18 days |
Expected stock price volatility | 22.30% | 26.80% | 34.00% |
Risk-free interest rate | 1.10% | 1.10% | 0.70% |
Expected dividend yield | 1.60% | 1.30% | 1.60% |
Weighted average grant price | $ 39.89 | $ 40.12 | $ 25.62 |
Estimated fair value per option granted | $ 6.58 | $ 8.36 | $ 6.44 |
Employee Stock and Benefit Pl82
Employee Stock and Benefit Plans (Stock Option Transactions) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Shares Subject to Options | |||
Outstanding, September 28, 2014, Shares Subject to Options | 39.6 | ||
Granted, Shares Subject to Options | 6.4 | ||
Exercised, Shares Subject to Options | (11.3) | ||
Expired/forfeited, Shares Subject to Options | (1.1) | ||
Outstanding, September 27, 2015, Shares Subject to Options | 33.6 | 39.6 | |
Exercisable, September 27, 2015, Shares Subject to Options | 21.1 | ||
Vested and expected to vest, September 27, 2015, Shares Subject to Options | 32.4 | ||
Weighted Average Exercise Price per Share | |||
Outstanding, September 28, 2014, Weighted Average Exercise Price per Share Beginning Balance | $ 18.93 | ||
Granted, Weighted Average Exercise Price per Share | 39.89 | $ 40.12 | $ 25.62 |
Exercised, Weighted Average Exercise Price per Share | 14.99 | ||
Expired/forfeited, Weighted Average Exercise Price per Share | 32.38 | ||
Outstanding, September 27, 2015, Weighted Average Exercise Price per Share Ending Balance | 23.81 | $ 18.93 | |
Exercisable at September 27, 2015, Weighted Average Exercise Price per Share | 16.75 | ||
Vested and expected to vest, September 27, 2015, Weighted Average Exercise Price per Share | $ 23.29 | ||
Additional Disclosures | |||
Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years | 5 years 9 months 18 days | |
Exercisable, September 27, 2015, Weighted Average Remaining Contractual Life (Years) | 4 years 8 months 12 days | ||
Vested and expected to vest, September 27, 2015, Weighted Average Remaining Contractual Life (Years) | 5 years 10 months 24 days | ||
Aggregate Intrinsic Value | |||
Outstanding, Aggregate Intrinsic Value | $ 1,150 | $ 754 | |
Exercisable, September 27, 2015, Aggregate Intrinsic Value | 872 | ||
Vested and expected to vest, September 27, 2015, Aggregate Intrinsic Value | $ 1,125 |
Employee Stock and Benefit Pl83
Employee Stock and Benefit Plans (RSU Transactions) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Nonvested, Number of Shares | |||
Nonvested, September 28, 2014, Number of Shares | 10.8 | ||
Granted, Number of Shares | 6.7 | ||
Vested, Number of Shares | (5.1) | ||
Forfeited/canceled, Number of Shares | (1.7) | ||
Nonvested, September 27, 2015, Number of Shares | 10.7 | 10.8 | |
Weighted Average Grant Date Fair Value per Share | |||
Nonvested, September 28, 2014, Weighted Average Grant Date Fair Value per Share | $ 31.17 | ||
Granted, Weighted Average Grant Date Fair Value per Share | 38.56 | $ 40.07 | $ 25.12 |
Vested, Weighted Average Grant Date Fair Value per Share | 26.73 | ||
Forfeited/canceled, Weighted Average Grant Date Fair Value per Share | 36.10 | ||
Nonvested, September 27, 2015, Weighted Average Grant Date Fair Value per Share | $ 36.35 | $ 31.17 | |
Additional Disclosures | |||
Nonvested, Weighted Average Remaining Contractual Life (Years) | 11 months 24 days | 1 year | |
Nonvested, Aggregate Intrinsic Value | $ 620 | $ 407 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Deferred tax asset related to litigation charge, estimated recovery period | 15 years | |||
Cumulative undistributed earnings of foreign subsidiaries and equity investees | $ 2,800 | |||
Net change in total valuation allowance | (23.1) | $ 6.3 | ||
Tax credit carryforward | 32 | |||
Foreign net operating loss carryforwards | 309.5 | |||
Gross unrecognized tax benefits | 150.4 | 112.7 | $ 88.8 | $ 75.3 |
Unrecognized tax benefits affecting the effective tax rate if recognized | 101.7 | |||
Interest and penalties expense/(benefit) recognized in income tax expense | 0.7 | 5.9 | $ (0.8) | |
Accrued interest and penalties | 11.3 | $ 10.6 | ||
Amount of reasonably possible unrecognized benefit change | $ 31.2 |
Income Taxes (Components of Ear
Income Taxes (Components of Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States, Total | $ 2,837.2 | $ 2,572.4 | $ (674) |
United States, Related to litigation charge | (2,784.1) | ||
United States, All Other | 2,110.1 | ||
Foreign, Total | 1,065.8 | 587.3 | 444.1 |
Foreign, Related to litigation charge | 0 | ||
Foreign, All Other | 444.1 | ||
Earnings/(loss) before income taxes | $ 3,903 | $ 3,159.7 | (229.9) |
Earnings before income taxes, Related to litigation charge | (2,784.1) | ||
Earnings before income taxes, All Other | $ 2,554.2 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current taxes: U.S. federal, Total | $ 801 | $ 822.7 | $ 616.6 |
Current taxes: U.S. federal, Related to litigation charge | 0 | ||
Current taxes: U.S. federal, All Other | 616.6 | ||
Current taxes: U.S. state and local, Total | 150.1 | 132.9 | 93.8 |
Current taxes: U.S. state and local, Related to litigation charge | 0 | ||
Current taxes: U.S. state and local, All Other | 93.8 | ||
Current taxes: Foreign, Total | 172.2 | 128.8 | 95.9 |
Current taxes: Foreign, Related to litigation charge | 0 | ||
Current taxes: Foreign, All Other | 95.9 | ||
Total current taxes | 1,123.3 | 1,084.4 | 806.3 |
Total current taxes, Related to litigation charge | 0 | ||
Total current taxes, All Other | 806.3 | ||
Deferred taxes: U.S. federal, Total | 56.5 | 12 | (898.8) |
Deferred taxes: U.S. federal, Related to litigation charge | (922.3) | ||
Deferred taxes: U.S. federal, All Other | 23.5 | ||
Deferred taxes: U.S. state and local, Total | 4 | (4.9) | (144) |
Deferred taxes: U.S. state and local, Related to litigation charge | (148.7) | ||
Deferred taxes: U.S. state and local, All Other | 4.7 | ||
Deferred taxes: Foreign | (40.1) | 0.5 | (2.2) |
Deferred taxes: Foreign, Related to litigation charge | 0 | ||
Deferred taxes: Foreign, All Other | (2.2) | ||
Total deferred taxes | 20.4 | 7.6 | (1,045) |
Total deferred taxes, Related to litigation charge | (1,071) | ||
Total deferred taxes, All Other | 26 | ||
Total income tax expense/(benefit) | $ 1,143.7 | $ 1,092 | (238.7) |
Total income tax expense/(benefit), Related to litigation charge | (1,071) | ||
Total income tax expense/(benefit), All Other | $ 832.3 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Statutory U.S. Federal Income Tax Rate With Our Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate, Total | 35.00% | 35.00% | 35.00% |
Statutory rate, Related to litigation charge | 35.00% | ||
Statutory rate, All Other | 35.00% | ||
State income taxes, net of federal tax benefit, Total | 2.80% | 2.60% | 15.80% |
State income taxes, net of federal tax benefit, Related to litigation charge | 3.50% | ||
State income taxes, net of federal tax benefit, All Other | 2.40% | ||
Benefits and taxes related to foreign operations, Total | (2.10%) | (1.90%) | 37.50% |
Benefits and taxes related to foreign operations, Related to litigation charge | 0.00% | ||
Benefits and taxes related to foreign operations, All Other | (3.40%) | ||
Domestic production activity deduction, Total | (2.20%) | (0.70%) | 8.10% |
Domestic production activity deduction, Related to litigation charge | (0.00%) | ||
Domestic production activity deduction, All Other | (0.70%) | ||
Domestic tax credits, Total | (0.20%) | (0.20%) | 2.80% |
Domestic tax credits, Related to litigation charge | (0.00%) | ||
Domestic tax credits, All Other | (0.30%) | ||
Charitable contributions, Total | (0.30%) | (0.40%) | 3.90% |
Charitable contributions, Related to litigation charge | 0.00% | ||
Charitable contributions, All Other | (0.30%) | ||
Gain resulting from acquisition of joint venture, Total | (3.70%) | 0.00% | 0.00% |
Gain resulting from acquisition of joint venture, Related to litigation charge | 0.00% | ||
Gain resulting from acquisition of joint venture, Other | 0.00% | ||
Other, net, Total | 0.00% | 0.20% | 0.70% |
Other, net, Related to litigation charge | 0.00% | ||
Other, net, All Other | (0.10%) | ||
Effective tax rate, Total | 29.30% | 34.60% | 103.80% |
Effective tax rate, Related to litigation charge | 38.50% | ||
Effective tax rate, Other | 32.60% |
Income Taxes (Tax Effect of Tem
Income Taxes (Tax Effect of Temporary Differences and Carryforwards That Comprise Significant Portions of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 27, 2015 | Sep. 28, 2014 |
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $ 121.4 | $ 78.5 |
Accrued occupancy costs | 98.4 | 58.8 |
Accrued compensation and related costs | 81.7 | 75.3 |
Other accrued liabilities | 49 | 27.6 |
Asset retirement obligation asset | 29 | 18.6 |
Stored value card liability | 99.1 | 63.4 |
Asset impairments | 26.2 | 49.5 |
Tax credits | 20.8 | 20.3 |
Stock-based compensation | 135.5 | 131.5 |
Net operating losses | 93.4 | 104.4 |
Litigation charge | 931 | 1,002 |
Other | 104.5 | 77 |
Total | 1,790 | 1,706.9 |
Valuation allowance | (143.7) | (166.8) |
Total deferred tax asset, net of valuation allowance | 1,646.3 | 1,540.1 |
Property, plant and equipment | (217.5) | (148.2) |
Intangible assets and goodwill | (177.3) | (92.9) |
Other | (114.1) | (89.4) |
Total | (508.9) | (330.5) |
Net deferred tax asset | 1,137.4 | 1,209.6 |
Current deferred income tax assets | 381.7 | 317.4 |
Long-term deferred income tax assets | 828.9 | 903.3 |
Current deferred income tax liabilities | (5.4) | (4.2) |
Long-term deferred income tax liabilities | $ (67.8) | $ (6.9) |
Income Taxes (Summary of Activi
Income Taxes (Summary of Activity Related to Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 112.7 | $ 88.8 | $ 75.3 |
Increase related to prior year tax positions | 7.9 | 1.4 | 8.9 |
Decrease related to prior year tax positions | (0.9) | (2.2) | (9.3) |
Increase related to current year tax positions | 32 | 26.7 | 19.3 |
Decrease related to current year tax positions | (0.6) | (1.9) | (0.4) |
Decreases related to settlements with taxing authorities | (0.7) | (0.1) | 0 |
Decreases related to lapsing of statute of limitations | 0 | 0 | (5) |
Ending balance | $ 150.4 | $ 112.7 | $ 88.8 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | Apr. 09, 2015$ / shares | Sep. 27, 2015$ / sharesshares | Sep. 28, 2014$ / sharesshares | Sep. 29, 2013shares |
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 2 | |||
Common stock, par value | $ 0.001 | |||
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Out-of-the-money stock options | shares | 0 | 5,300,000 | 0 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Net Earnings Per Common Share ("EPS") - Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||
Net earnings attributable to Starbucks | $ 652.5 | $ 626.7 | $ 494.9 | $ 983.1 | $ 587.9 | $ 512.6 | $ 427 | $ 540.7 | $ 2,757.4 | $ 2,068.1 | $ 8.3 | ||||||||||
Weighted average common shares and common stock units outstanding (for basic calculation) | 1,495.9 | 1,506.3 | 1,498.5 | ||||||||||||||||||
Dilutive effect of outstanding common stock options and RSUs | 17.5 | 20 | 26 | ||||||||||||||||||
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,513.4 | 1,526.3 | 1,524.5 | ||||||||||||||||||
EPS - basic | $ 1.84 | $ 1.37 | $ 0.01 | ||||||||||||||||||
EPS - diluted | $ 0.43 | [1] | $ 0.41 | [1] | $ 0.33 | [1] | $ 0.65 | [1] | $ 0.39 | [1] | $ 0.34 | [1] | $ 0.28 | [1] | $ 0.35 | [1] | $ 1.82 | [1] | $ 1.35 | [1] | $ 0.01 |
[1] | As discussed in Note 1, Summary of Significant Accounting Policies, on April 9, 2015, we effected a two-for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All per-share data presented in this note has been retroactively adjusted to reflect this stock split. |
Commitments And Contingencies92
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | Nov. 12, 2013 | Dec. 29, 2013 | Sep. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Litigation settlement amount | $ 2,227.5 | |||||
Litigation settlement interest | $ 556.6 | |||||
Litigation charge | $ 2,784.1 | |||||
Litigation payment | $ 2,763.9 | $ 0 | $ 2,763.9 | $ 0 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Segment Reporting Information [Line Items] | |||
Basis for segment information | Our chief executive officer and chief operating officer comprise the Company's Chief Operating Decision Maker function ("CODM"). Segment information is prepared on the same basis that our CODM manages the segments, evaluates financial results, and makes key operating decisions. | ||
Number of reportable operating segments | 4 | ||
Disclosure of significant customers | No customer accounts for 10% or more of our revenues | ||
Total net revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue from other countries | 100.00% | 100.00% | 100.00% |
Total net revenues [Member] | Japan Canada China and UK [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue from other countries | 76.00% | ||
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Description of segment products and services | Americas, CAP, and EMEA operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. | ||
Operating Segments [Member] | China/Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Description of segment products and services | Americas, CAP and EMEA operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. | ||
Operating Segments [Member] | EMEA [Member] | |||
Segment Reporting Information [Line Items] | |||
Description of segment products and services | Americas, CAP and EMEA operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. | ||
Operating Segments [Member] | Channel Development [Member] | |||
Segment Reporting Information [Line Items] | |||
Description of segment products and services | Channel Development operations sell a selection of packaged coffees and single-serve products, as well as a selection of premium Tazo® teas globally. Channel Development operations also produce and sell a variety of ready-to-drink beverages, such as Frappuccino® coffee drinks, Starbucks Doubleshot® espresso drinks, Starbucks Refreshers® beverages and chilled multi-serve beverages. The U.S. foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies. |
Segment Reporting (Consolidated
Segment Reporting (Consolidated Revenue Mix By Product Type) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | ||
Revenue from External Customer [Line Items] | ||||||||||||
Total net revenues | $ 4,914.8 | $ 4,881.2 | $ 4,563.5 | $ 4,803.2 | $ 4,180.8 | $ 4,153.7 | $ 3,873.8 | $ 4,239.6 | $ 19,162.7 | $ 16,447.8 | $ 14,866.8 | |
Beverage Member | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total net revenues | 11,115.4 | 9,458.4 | 8,674.7 | |||||||||
Food Member | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total net revenues | 3,085.3 | 2,505.2 | 2,189.8 | |||||||||
Packaged and Single Serve Coffees and Teas [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total net revenues | 2,619.9 | 2,370 | 2,206.5 | |||||||||
Other Products Member | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total net revenues | [1] | $ 2,342.1 | $ 2,114.2 | $ 1,795.8 | ||||||||
Total net revenues [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Percentage of product revenue to total revenue | 100.00% | 100.00% | 100.00% | |||||||||
Total net revenues [Member] | Beverage Member | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Percentage of product revenue to total revenue | 58.00% | 58.00% | 58.00% | |||||||||
Total net revenues [Member] | Food Member | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Percentage of product revenue to total revenue | 16.00% | 15.00% | 15.00% | |||||||||
Total net revenues [Member] | Packaged and Single Serve Coffees and Teas [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Percentage of product revenue to total revenue | 14.00% | 14.00% | 15.00% | |||||||||
Total net revenues [Member] | Other Products Member | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Percentage of product revenue to total revenue | [1] | 12.00% | 13.00% | 12.00% | ||||||||
[1] | "Other" primarily consists of royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and serveware, among other items. |
Segment Reporting (Information
Segment Reporting (Information by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net revenues | $ 4,914.8 | $ 4,881.2 | $ 4,563.5 | $ 4,803.2 | $ 4,180.8 | $ 4,153.7 | $ 3,873.8 | $ 4,239.6 | $ 19,162.7 | $ 16,447.8 | $ 14,866.8 |
Long-lived assets | 8,093.4 | 6,584.2 | 8,093.4 | 6,584.2 | 6,045.3 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net revenues | 14,123.7 | 12,590.6 | 11,389.6 | ||||||||
Long-lived assets | 5,468.1 | 5,135.8 | 5,468.1 | 5,135.8 | 4,641.3 | ||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net revenues | 5,039 | 3,857.2 | 3,477.2 | ||||||||
Long-lived assets | $ 2,625.3 | $ 1,448.4 | $ 2,625.3 | $ 1,448.4 | $ 1,404 |
Segment Reporting (Financial In
Segment Reporting (Financial Information For Reportable Operating Segments And All Other Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 4,914.8 | $ 4,881.2 | $ 4,563.5 | $ 4,803.2 | $ 4,180.8 | $ 4,153.7 | $ 3,873.8 | $ 4,239.6 | $ 19,162.7 | $ 16,447.8 | $ 14,866.8 |
Depreciation and amortization expenses | 893.9 | 709.6 | 621.4 | ||||||||
Income from equity investees | 249.9 | 268.3 | 251.4 | ||||||||
Operating income/(loss) | 969.4 | $ 938.6 | $ 777.5 | $ 915.5 | 854.9 | $ 768.5 | $ 644.1 | $ 813.5 | 3,601 | 3,081.1 | (325.4) |
Total assets | 12,446.1 | 10,752.9 | 12,446.1 | 10,752.9 | |||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 19,162.7 | 16,447.8 | 14,866.8 | ||||||||
Depreciation and amortization expenses | 744 | 592 | 531.4 | ||||||||
Income from equity investees | 249.9 | 268.3 | 251.4 | ||||||||
Operating income/(loss) | 4,521.1 | 3,831.1 | 3,131.6 | ||||||||
Total assets | 7,578.9 | 5,034 | 7,578.9 | 5,034 | 4,549.3 | ||||||
Operating Segments [Member] | Americas [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 13,293.4 | 11,980.5 | 11,000.8 | ||||||||
Depreciation and amortization expenses | 522.3 | 469.5 | 429.3 | ||||||||
Income from equity investees | 0 | 0 | 2.4 | ||||||||
Operating income/(loss) | 3,223.3 | 2,809 | 2,365.2 | ||||||||
Total assets | 2,726.7 | 2,521.4 | 2,726.7 | 2,521.4 | 2,323.4 | ||||||
Operating Segments [Member] | China/Asia Pacific [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 2,395.9 | 1,129.6 | 917 | ||||||||
Depreciation and amortization expenses | 150.7 | 46.1 | 33.8 | ||||||||
Income from equity investees | 119.6 | 164 | 152 | ||||||||
Operating income/(loss) | 500.5 | 372.5 | 321.2 | ||||||||
Total assets | 2,230.5 | 939.8 | 2,230.5 | 939.8 | 805 | ||||||
Operating Segments [Member] | EMEA [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 1,216.7 | 1,294.8 | 1,160 | ||||||||
Depreciation and amortization expenses | 52 | 59.4 | 55.5 | ||||||||
Income from equity investees | 3.1 | 3.7 | 0.4 | ||||||||
Operating income/(loss) | 168.2 | 119.2 | 64.2 | ||||||||
Total assets | 749.1 | 663 | 749.1 | 663 | 510.6 | ||||||
Operating Segments [Member] | Channel Development [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 1,730.9 | 1,546 | 1,398.9 | ||||||||
Depreciation and amortization expenses | 2.7 | 1.8 | 1.1 | ||||||||
Income from equity investees | 127.2 | 100.6 | 96.6 | ||||||||
Operating income/(loss) | 653.9 | 557.2 | 415.5 | ||||||||
Total assets | 87.3 | 84.6 | 87.3 | 84.6 | 89.2 | ||||||
Operating Segments [Member] | All Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 525.8 | 496.9 | 390.1 | ||||||||
Depreciation and amortization expenses | 16.3 | 15.2 | 11.7 | ||||||||
Income from equity investees | 0 | 0 | 0 | ||||||||
Operating income/(loss) | (24.8) | (26.8) | (34.5) | ||||||||
Total assets | $ 1,785.3 | $ 825.2 | $ 1,785.3 | $ 825.2 | $ 821.1 |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation of Total Segment Operating Income to Consolidated Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 29, 2013 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income/(loss) | $ 969.4 | $ 938.6 | $ 777.5 | $ 915.5 | $ 854.9 | $ 768.5 | $ 644.1 | $ 813.5 | $ 3,601 | $ 3,081.1 | $ (325.4) | |
Gain resulting from acquisition of joint venture | 390.6 | 0 | 0 | |||||||||
Loss on extinguishment of debt | (61.1) | 0 | 0 | |||||||||
Interest income and other, net | 43 | 142.7 | 123.6 | |||||||||
Interest expense | (70.5) | (64.1) | (28.1) | |||||||||
Earnings/(loss) before income taxes | 3,903 | 3,159.7 | (229.9) | |||||||||
Litigation charge | 0 | 20.2 | (2,784.1) | |||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income/(loss) | 4,521.1 | 3,831.1 | 3,131.6 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income/(loss) | $ (920.1) | $ (750) | $ (3,457) | [1] | ||||||||
[1] | Fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the litigation charge we recorded associated with the conclusion of our arbitration with Kraft. |
Selected Quarterly Financial 98
Selected Quarterly Financial Information (Schedule of Selected Quarterly Financial Information) (Details) $ / shares in Units, $ in Millions | Apr. 09, 2015$ / shares | Sep. 27, 2015USD ($)$ / shares | Jun. 28, 2015USD ($)$ / shares | Mar. 29, 2015USD ($)$ / shares | Dec. 28, 2014USD ($)$ / shares | Sep. 28, 2014USD ($)$ / shares | Jun. 29, 2014USD ($)$ / shares | Mar. 30, 2014USD ($)$ / shares | Dec. 29, 2013USD ($)$ / shares | Sep. 27, 2015USD ($)$ / shares | Sep. 28, 2014USD ($)$ / shares | Sep. 29, 2013USD ($)$ / shares | ||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||
Total net revenues | $ | $ 4,914.8 | $ 4,881.2 | $ 4,563.5 | $ 4,803.2 | $ 4,180.8 | $ 4,153.7 | $ 3,873.8 | $ 4,239.6 | $ 19,162.7 | $ 16,447.8 | $ 14,866.8 | |||||||||||
Operating income/(loss) | $ | 969.4 | 938.6 | 777.5 | 915.5 | 854.9 | 768.5 | 644.1 | 813.5 | 3,601 | 3,081.1 | (325.4) | |||||||||||
Net earnings attributable to Starbucks | $ | $ 652.5 | $ 626.7 | $ 494.9 | $ 983.1 | $ 587.9 | $ 512.6 | $ 427 | $ 540.7 | $ 2,757.4 | $ 2,068.1 | $ 8.3 | |||||||||||
EPS - diluted | $ 0.43 | [1] | $ 0.41 | [1] | $ 0.33 | [1] | $ 0.65 | [1] | $ 0.39 | [1] | $ 0.34 | [1] | $ 0.28 | [1] | $ 0.35 | [1] | $ 1.82 | [1] | $ 1.35 | [1] | $ 0.01 | |
Class of Stock [Line Items] | ||||||||||||||||||||||
Stock split conversion ratio | 2 | |||||||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Stock split conversion ratio | 2 | |||||||||||||||||||||
Common stock, par value | $ 0.001 | |||||||||||||||||||||
[1] | As discussed in Note 1, Summary of Significant Accounting Policies, on April 9, 2015, we effected a two-for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All per-share data presented in this note has been retroactively adjusted to reflect this stock split. |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] € in Millions, $ in Millions | Nov. 10, 2015USD ($) | Oct. 21, 2015EUR (€) |
Subsequent Event [Line Items] | ||
Maximum assessed taxes | $ 32 | € 30 |
Reference conversion rate | 1.075 |