Document And Entity Information
Document And Entity Information - shares shares in Millions | 9 Months Ended | |
Jun. 26, 2016 | Jul. 20, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 26, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SBUX | |
Entity Registrant Name | STARBUCKS CORP | |
Entity Central Index Key | 829,224 | |
Current Fiscal Year End Date | --10-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,466.6 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Net revenues: | ||||
Total net revenues | $ 5,238 | $ 4,881.2 | $ 15,604.7 | $ 14,247.9 |
Cost of sales including occupancy costs | 2,060.3 | 1,953.9 | 6,256.9 | 5,804.9 |
Store operating expenses | 1,529.4 | 1,392.4 | 4,502 | 4,032.5 |
Other operating expenses | 137.5 | 131.6 | 423.3 | 394.5 |
Depreciation and amortization expenses | 247.6 | 236.5 | 730.9 | 659.6 |
General and administrative expenses | 323.4 | 288.5 | 959.4 | 892.8 |
Total operating expenses | 4,298.2 | 4,002.9 | 12,872.5 | 11,784.3 |
Income from equity investees | 82.5 | 60.3 | 212.3 | 168 |
Operating income | 1,022.3 | 938.6 | 2,944.5 | 2,631.6 |
Gain resulting from acquisition of joint venture | 0 | 0 | 0 | 390.6 |
Interest income and other, net | 72.9 | 25.5 | 95.5 | 36.6 |
Interest expense | (21.8) | (19.1) | (56.6) | (52.3) |
Earnings before income taxes | 1,073.4 | 945 | 2,983.4 | 3,006.5 |
Income tax expense | 318.9 | 318.5 | 966.2 | 899.7 |
Net earnings including noncontrolling interests | 754.5 | 626.5 | 2,017.2 | 2,106.8 |
Net earnings/(loss) attributable to noncontrolling interests | 0.4 | (0.2) | 0.4 | 1.9 |
Net earnings attributable to Starbucks | $ 754.1 | $ 626.7 | $ 2,016.8 | $ 2,104.9 |
Earnings per share - basic | $ 0.51 | $ 0.42 | $ 1.37 | $ 1.40 |
Earnings per share - diluted | $ 0.51 | $ 0.41 | $ 1.35 | $ 1.39 |
Weighted average shares outstanding: | ||||
Basic | 1,465.3 | 1,498.5 | 1,474.4 | 1,499.3 |
Diluted | 1,479.3 | 1,515.7 | 1,489.7 | 1,516.3 |
Cash dividends declared per share | $ 0.20 | $ 0.16 | $ 0.6 | $ 0.48 |
Company-operated stores [Member] | ||||
Net revenues: | ||||
Total net revenues | $ 4,181.6 | $ 3,915 | $ 12,336.3 | $ 11,310.7 |
Licensed stores [Member] | ||||
Net revenues: | ||||
Total net revenues | 527.2 | 475.2 | 1,561 | 1,380.5 |
CPG, foodservice and other [Member] | ||||
Net revenues: | ||||
Total net revenues | $ 529.2 | $ 491 | $ 1,707.4 | $ 1,556.7 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Net earnings including noncontrolling interests | $ 754.5 | $ 626.5 | $ 2,017.2 | $ 2,106.8 |
Other comprehensive income/(loss), net of tax: | ||||
Other comprehensive income/(loss) | 60.6 | (14.2) | 70.8 | (156.4) |
Comprehensive income including noncontrolling interests | 815.1 | 612.3 | 2,088 | 1,950.4 |
Comprehensive income/(loss) attributable to noncontrolling interests | 0.4 | (0.2) | 0.4 | (29.2) |
Comprehensive income attributable to Starbucks | 814.7 | 612.5 | 2,087.6 | 1,979.6 |
Available-for-sale Securities [Member] | ||||
Other comprehensive income/(loss), net of tax: | ||||
Unrealized holding gains/(losses) on available-for-sale securities, before tax | (4.1) | (1.8) | 0.7 | 0.3 |
Unrealized holding gains/(losses) on available-for-sale securities, tax (expense)/benefit | 1.5 | 0.7 | (0.3) | (0.1) |
Cash Flow Hedging [Member] | ||||
Other comprehensive income/(loss), net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | (48.4) | 33.9 | (110.7) | 97.8 |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | 12.8 | (8.8) | 27.5 | (24.2) |
Net Investment Hedging [Member] | ||||
Other comprehensive income/(loss), net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | 0 | 0 | 0 | 4.3 |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | 0 | 0 | 0 | (1.6) |
Available-for-sale Securities [Member] | ||||
Other comprehensive income/(loss), net of tax: | ||||
Other comprehensive income/(loss) | (3.2) | (1.6) | (0.2) | (0.8) |
Cash Flow Hedging [Member] | ||||
Other comprehensive income/(loss), net of tax: | ||||
Other comprehensive income/(loss) | 9.1 | (1.6) | (20.3) | (1.3) |
Net Investment Hedging [Member] | ||||
Other comprehensive income/(loss), net of tax: | ||||
Other comprehensive income/(loss) | 0 | 0 | 0 | (1.9) |
Translation Adjustment [Member] | ||||
Other comprehensive income/(loss), net of tax: | ||||
Translation adjustment, before tax | 49.8 | (6) | 79.8 | (169.3) |
Translation adjustment, tax (expense)/benefit | 4.9 | (5) | 11.5 | 2.6 |
Other comprehensive income/(loss) | 54.7 | (11) | 91.3 | (121.3) |
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 | 53.8 | (38.2) | 73.3 | (94) |
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, tax expense/(benefit) | $ (9.7) | $ 11 | $ (11) | $ 27.8 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,141.8 | $ 1,530.1 |
Short-term investments | 174.5 | 81.3 |
Accounts receivable, net | 747.3 | 719 |
Inventories | 1,325.1 | 1,306.4 |
Prepaid expenses and other current assets | 467.5 | 334.2 |
Total current assets | 4,856.2 | 3,971 |
Long-term investments | 819.5 | 312.5 |
Equity and cost investments | 352.6 | 352 |
Property, plant and equipment, net | 4,359.2 | 4,088.3 |
Deferred income taxes, net | 822.8 | 1,180.8 |
Other long-term assets | 391.1 | 415.9 |
Other intangible assets | 526.7 | 520.4 |
Goodwill | 1,705.1 | 1,575.4 |
TOTAL ASSETS | 13,833.2 | 12,416.3 |
Current liabilities: | ||
Accounts payable | 675.7 | 684.2 |
Accrued liabilities | 1,714.5 | 1,755.3 |
Insurance reserves | 238.6 | 224.8 |
Stored value card liability | 1,216.6 | 983.8 |
Current portion of long-term debt | 399.8 | 0 |
Total current liabilities | 4,245.2 | 3,648.1 |
Long-term debt | 3,202.4 | 2,347.5 |
Other long-term liabilities | 661.6 | 600.9 |
Total liabilities | 8,109.2 | 6,596.5 |
Shareholders' equity: | ||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,466.4 shares and 1,485.1 shares, respectively | 1.5 | 1.5 |
Additional paid-in capital | 146.9 | 41.1 |
Retained earnings | 5,702 | 5,974.8 |
Accumulated other comprehensive income/(loss) | (128.6) | (199.4) |
Total shareholders' equity | 5,721.8 | 5,818 |
Noncontrolling interest | 2.2 | 1.8 |
Total equity | 5,724 | 5,819.8 |
TOTAL LIABILITIES AND EQUITY | $ 13,833.2 | $ 12,416.3 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 26, 2016 | Sep. 27, 2015 |
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 | 1,466,400,000 | 1,485,100,000 |
Common stock, shares outstanding | 1,466,400,000 | 1,485,100,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 26, 2016 | Jun. 28, 2015 | |
OPERATING ACTIVITIES: | ||
Net earnings including noncontrolling interests | $ 2,017.2 | $ 2,106.8 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 768.2 | 693.3 |
Deferred income taxes, net | 344.7 | 44.1 |
Income earned from equity method investees | (165.5) | (123.3) |
Distributions received from equity method investees | 139.4 | 84.3 |
Gain resulting from acquisition/sale of equity in joint ventures and certain retail operations | (30.7) | (390.6) |
Stock-based compensation | 158.4 | 156.2 |
Excess tax benefit on share-based awards | (110.9) | (97.9) |
Other | 40.8 | 41.8 |
Cash provided by changes in operating assets and liabilities: | ||
Accounts receivable | (39.5) | (31.4) |
Inventories | (15.7) | (64.3) |
Accounts payable | (3.7) | 53.7 |
Stored value card liability | 223.5 | 206.6 |
Other operating assets and liabilities | 59.3 | (99.9) |
Net cash provided by operating activities | 3,266.9 | 2,779.2 |
INVESTING ACTIVITIES: | ||
Purchases of investments | (1,022.7) | (466.8) |
Sales of investments | 409.6 | 420.1 |
Maturities and calls of investments | 11.8 | 16 |
Acquisitions, net of cash acquired | 0 | (284.3) |
Additions to property, plant and equipment | (1,029.7) | (943.5) |
Net proceeds from sale of equity in joint venture and certain retail operations | 69.6 | 0 |
Other | 3.3 | (33.9) |
Net cash used by investing activities | (1,558.1) | (1,292.4) |
FINANCING ACTIVITIES: | ||
Proceeds from issuance of long-term debt | 1,254.5 | 848.5 |
Cash used or restricted for purchase of noncontrolling interest | 0 | (366.3) |
Proceeds from issuance of common stock | 120.9 | 146.9 |
Excess tax benefit on share-based awards | 110.9 | 97.9 |
Cash dividends paid | (884.8) | (719.7) |
Repurchase of common stock | (1,590.4) | (921.1) |
Minimum tax withholdings on share-based awards | (105.3) | (74.5) |
Other | 0.1 | (8.5) |
Net cash used by financing activities | (1,094.1) | (996.8) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (117.9) |
Net increase in cash and cash equivalents | 611.7 | 372.1 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 1,530.1 | 1,708.4 |
End of period | 2,141.8 | 2,080.5 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 68.3 | 56.6 |
Income taxes, net of refunds | $ 669.8 | $ 936.5 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 26, 2016 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Financial Statement Preparation The unaudited condensed consolidated financial statements as of June 26, 2016 , and for the quarter and three quarters ended June 26, 2016 and June 28, 2015 , have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial information for the quarter and three quarters ended June 26, 2016 and June 28, 2015 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. In this Quarterly Report on Form 10-Q (“10-Q”), Starbucks Corporation is referred to as “Starbucks,” the “Company,” “we,” “us” or “our.” The financial information as of September 27, 2015 is derived from our audited consolidated financial statements and notes for the fiscal year ended September 27, 2015 (“fiscal 2015 ”) included in Item 8 in the Fiscal 2015 Annual Report on Form 10-K (the “10-K”). The information included in this 10-Q should be read in conjunction with the footnotes and management’s discussion and analysis of the consolidated financial statements in the 10-K. The results of operations for the quarter and three quarters ended June 26, 2016 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending October 2, 2016 ("fiscal 2016 "). Additionally, our 2016 fiscal year will include 53 weeks, with the 53rd week falling in our fourth fiscal quarter. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the measurement and recognition of credit losses on most financial assets. For trade receivables, loans, and held-to-maturity debt securities, the current probable loss recognition methodology is being replaced by an expected credit loss model. For available-for-sale debt securities, the recognition model on credit losses is generally unchanged, except the losses will be presented as an adjustable allowance. The guidance will be applied retrospectively with the cumulative effect recognized as of the date of adoption. The guidance will become effective at the beginning of our first quarter of fiscal 2021 but can be adopted as early as the beginning of our first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. In March 2016, the FASB issued guidance related to stock-based compensation, which changes the accounting and classification of excess tax benefits and minimum tax withholdings on share-based awards. The guidance becomes effective on a prospective basis 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. Additionally, in March 2016, the FASB issued guidance for financial liabilities resulting from selling prepaid stored value products that are redeemable at third-party merchants. Under the new guidance, expected breakage amounts associated with these products must be recognized proportionately in earnings as redemption occurs. Our current accounting policy of applying the remote method to all of our stored value cards, including cards redeemable at the third-party licensed locations, will no longer be allowed. The guidance will become effective at the beginning of our first quarter of fiscal 2019, with the option to adopt in an earlier period. As the guidance and timing of transition are consistent with the new revenue recognition standard issued by the FASB in May 2014 and discussed below, we expect to implement the provisions of both sets of guidance in the same period. In February 2016, the FASB issued guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of our first quarter of fiscal 2020, with optional practical expedients, but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements but expect this adoption will result in a significant increase in the assets and liabilities on our consolidated balance sheet. In January 2016, the FASB issued guidance on the recognition and measurement of financial instruments. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The new guidance will result in a cumulative effect adjustment recognized in our balance sheet and will become effective for us at the beginning of our first quarter of fiscal 2019. We are currently evaluating the impact of this guidance. In November 2015, the FASB issued guidance on the presentation of deferred income taxes that requires deferred tax assets and liabilities, along with related valuation allowances, to be classified as noncurrent on the balance sheet. As a result, each tax jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. During the first quarter of fiscal 2016, we elected to early-adopt this guidance retrospectively. The following table summarizes the adjustments made to conform prior period classifications to the new guidance ( in millions ): September 27, 2015 As Filed Reclass As Adjusted Current deferred income tax assets $ 381.7 $ (381.7 ) $ — Long-term deferred income tax assets 828.9 351.9 1,180.8 Current deferred income tax liabilities (included in Accrued liabilities) 5.4 (5.4 ) — Long-term deferred income tax liabilities (included in Other long-term liabilities) 67.8 (24.4 ) 43.4 Net deferred tax asset $ 1,137.4 $ — $ 1,137.4 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 or 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 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; however, 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. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Jun. 26, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 2: Acquisitions and Divestitures Fiscal 2016 During the third quarter of fiscal 2016, we sold our Germany company-operated retail store assets and operations to AmRest Holdings SE, converting these operations to a fully licensed market for a total of $47.3 million . This transaction resulted in a pre-tax gain of $30.1 million , which was included in net interest income and other on our condensed consolidated statements of earnings. In the first quarter of fiscal 2016, we sold our 49% ownership interest in our Spanish joint venture, Starbucks Coffee España, S.L. ("Starbucks Spain"), to our joint venture partner, Sigla S.A. (Grupo Vips), for a total purchase price of $30.2 million . This transaction resulted in a gain of $0.6 million , which was included in net interest income and other on our consolidated statements of earnings. Fiscal 2015 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 for approximately $876 million , through a two-step tender offer. On October 31, 2014 , we acquired a controlling interest in Starbucks Japan by funding the first tender offer step with $509 million in offshore cash. We assumed full ownership in the second quarter of fiscal 2015 by completing the second tender offer step, and completed the related cash-out procedure during the remainder of fiscal 2015 , which utilized a combined total of $362 million in offshore cash. The remaining amount of the cash-out procedure is immaterial to our consolidated financial statements and represents cash that was unclaimed by minority shareholders, which was recorded in accrued liabilities on our consolidated balance sheets. There are no legal restrictions on the remaining unclaimed balance. The balance of goodwill and the gross carrying value of acquired intangible assets expanded $46.0 million and $18.2 million to $861.6 million and $341.2 million , respectively, from the acquisition date to June 26, 2016 , due to foreign currency translation. Accumulated amortization related to the acquired intangible assets was $87.4 million as of June 26, 2016 . 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 recorded in the first quarter of fiscal 2015 and was presented separately as gain resulting from acquisition of joint venture within other income on our consolidated statements of earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 26, 2016 | |
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 benchmark interest rates 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. 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 intercompany royalty payments, inventory purchases, and intercompany borrowing and lending activities. The effective portion of the derivative's gain or loss is recorded in AOCI and is subsequently reclassified to revenue, cost of sales including occupancy costs, or net interest income and other, respectively, when the hedged exposure affects net earnings. 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 is subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated. To mitigate the foreign exchange risk of certain balance sheet items, we enter into foreign currency forward and 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. Commodities Depending on market conditions, we may 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 each 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 swap contracts, 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 to 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) Included in AOCI Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Outstanding Contract Remaining Maturity (Months) Jun 26, Sep 27, Cash Flow Hedges: Interest rates $ 21.3 $ 30.1 $ 2.9 0 Cross-currency swaps (9.8 ) (27.8 ) — 102 Foreign currency - other (1.8 ) 29.0 2.2 34 Coffee (4.3 ) (5.7 ) (3.9 ) 6 Net Investment Hedges: Foreign currency 1.3 1.3 — 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 ): Quarter Ended Three Quarters Ended Gains/(Losses) Recognized in OCI Before Reclassifications Gains/(Losses) Reclassified from AOCI to Earnings Gains/(Losses) Recognized in Gains/(Losses) Reclassified from AOCI to Earnings Jun 26, Jun 28, Jun 26, Jun 28, Jun 26, Jun 28, Jun 26, Jun 28, Cash Flow Hedges: Interest rates $ (2.0 ) $ (0.7 ) $ 1.2 $ 1.2 $ (10.3 ) $ (7.0 ) $ 4.0 $ 3.8 Cross-currency swaps (28.0 ) 44.0 (57.6 ) 29.5 (72.9 ) 80.3 (95.8 ) 82.0 Foreign currency - other (19.1 ) (7.5 ) 2.2 7.3 (27.9 ) 29.9 18.5 16.9 Coffee 0.8 (1.9 ) (0.5 ) (0.7 ) 0.4 (5.4 ) (1.1 ) (3.3 ) Net Investment Hedges: Foreign currency — — — — — 4.3 — 7.2 Pretax gains and losses on derivative contracts not designated as hedging instruments recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Foreign currency - other $ (7.1 ) $ 2.5 $ (9.0 ) $ 25.8 Dairy 2.9 0.4 (4.1 ) (2.9 ) Diesel fuel 3.8 1.1 (0.4 ) (7.5 ) Notional amounts of outstanding derivative contracts (in millions) : Jun 26, 2016 Sep 27, 2015 Interest rates $ — $ 125 Cross-currency swaps 718 717 Foreign currency - other 737 577 Coffee 13 38 Dairy 56 43 Diesel fuel 28 14 The fair values of our derivative assets and liabilities are included in Note 4 , Fair Value Measurements, and additional disclosures related to cash flow and net investment hedge gains and losses included in AOCI, as well as subsequent reclassifications to earnings, are included in Note 8 , Equity. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 26, 2016 | |
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 $ 2,141.8 $ 2,141.8 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 31.5 — 31.5 — Equity securities 19.9 — 19.9 — Foreign government obligations 5.0 — 5.0 — U.S. government treasury securities 51.9 51.9 — — State and local government obligations 0.5 — 0.5 — Mortgage and other asset-backed securities 0.2 — 0.2 — Total available-for-sale securities 109.0 51.9 57.1 — Trading securities 65.5 65.5 — — Total short-term investments 174.5 117.4 57.1 — Prepaid expenses and other current assets: Derivative assets 27.4 3.8 23.6 — Long-term investments: Available-for-sale securities Agency obligations 22.0 — 22.0 — Corporate debt securities 312.4 — 312.4 — Auction rate securities 5.7 — — 5.7 Foreign government obligations 36.3 — 36.3 — U.S. government treasury securities 307.6 307.6 — — State and local government obligations 16.0 — 16.0 — Mortgage and other asset-backed securities 119.5 — 119.5 — Total long-term investments 819.5 307.6 506.2 5.7 Other long-term assets: Derivative assets 10.3 — 10.3 — Total assets $ 3,173.5 $ 2,570.6 $ 597.2 $ 5.7 Liabilities: Accrued liabilities: Derivative liabilities $ 32.5 $ 0.9 $ 31.6 $ — Other long-term liabilities: Derivative liabilities 67.7 — 67.7 — Total liabilities $ 100.2 $ 0.9 $ 99.3 $ — 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 $ 33.7 $ 3.6 $ 30.1 $ — There were no 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. Gross unrealized holding gains and losses on investments were not material as of June 26, 2016 and September 27, 2015 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements 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. During the quarter and three quarters ended June 26, 2016 and June 28, 2015 , there were no material fair value adjustments. The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 7 , Debt. |
Inventories
Inventories | 9 Months Ended |
Jun. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (in millions) Jun 26, 2016 Sep 27, 2015 Jun 28, 2015 Coffee: Unroasted $ 625.2 $ 529.4 $ 529.5 Roasted 269.8 279.7 240.6 Other merchandise held for sale 243.7 318.3 226.2 Packaging and other supplies 186.4 179.0 169.7 Total $ 1,325.1 $ 1,306.4 $ 1,166.0 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 June 26, 2016 , we had committed to purchasing green coffee totaling $567 million under fixed-price contracts and an estimated $433 million under price-to-be-fixed contracts. As of June 26, 2016 , approximately $13 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 most contracts, either Starbucks or the seller has the option to “fix” the base “C” coffee commodity price prior to the delivery date. For other contracts, Starbucks and the seller may agree upon pricing parameters determined by the base "C" coffee commodity price. 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 these purchase commitments is remote. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Jun. 26, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information (in millions) Property, Plant and Equipment, net Jun 26, 2016 Sep 27, 2015 Land $ 46.6 $ 46.6 Buildings 443.7 411.5 Leasehold improvements 5,697.9 5,409.6 Store equipment 1,851.3 1,707.5 Roasting equipment 593.1 542.4 Furniture, fixtures and other 1,376.4 1,281.7 Work in progress 292.8 242.5 Property, plant and equipment, gross 10,301.8 9,641.8 Accumulated depreciation (5,942.6 ) (5,553.5 ) Property, plant and equipment, net $ 4,359.2 $ 4,088.3 Accrued Liabilities Jun 26, 2016 Sep 27, 2015 Accrued compensation and related costs $ 544.3 $ 522.3 Accrued occupancy costs 142.9 137.2 Accrued taxes 185.6 259.0 Accrued dividends payable 293.3 297.0 Other 548.4 539.8 Total accrued liabilities $ 1,714.5 $ 1,755.3 |
Debt
Debt | 9 Months Ended |
Jun. 26, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term Debt 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. We issue commercial paper from time to time, and the proceeds from borrowings are used for working capital needs, capital expenditures and other corporate purposes, including business expansion, payment of cash dividends on our common stock and share repurchases. As of June 26, 2016 , we had no borrowings outstanding under the program. Long-term Debt In May 2016 , we issued additional long-term debt in an underwritten registered public offering, which consisted of $500 million of 10-year 2.450% Senior Notes (the "2026 notes") due June 2026 . Interest on the 2026 notes is payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2016 . In February 2016 , we issued long-term debt in an underwritten registered public offering, which consisted of $500 million of 5-year 2.100% Senior Notes (the "2021 notes") due February 2021 . In May 2016 , we reopened this offering with the same terms and issued an additional $250 million of Senior Notes for an aggregate amount outstanding of $750 million . Interest on the 2021 notes is payable semi-annually on February 4 and August 4 of each year, commencing on August 4, 2016 . Components of long-term debt including the associated interest rates and related estimated fair values by calendar maturity ( in millions, except interest rates) : Jun 26, 2016 Sep 27, 2015 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 % 2018 notes 350.0 358 350.0 354 2.000 % 2.012 % 2021 notes 500.0 512 — — 2.100 % 2.293 % 2021 notes 250.0 256 — — 2.100 % 1.600 % 2022 notes 500.0 527 500.0 503 2.700 % 2.819 % 2023 notes 750.0 845 750.0 790 3.850 % 2.860 % 2026 notes 500.0 504 — — 2.450 % 2.511 % 2045 notes 350.0 406 350.0 355 4.300 % 4.348 % Total 3,600.0 3,808 2,350.0 2,402 Aggregate unamortized premium/(discount) 2.2 (2.5 ) Total $ 3,602.2 $ 2,347.5 (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 require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of June 26, 2016 , we were in compliance with all applicable covenants. The following table summarizes our long-term debt maturities as of June 26, 2016 by fiscal year ( in millions ): Maturities Total 2016 $ — 2017 400.0 2018 — 2019 350.0 2020 — Thereafter 2,850.0 Total $ 3,600.0 |
Equity
Equity | 9 Months Ended |
Jun. 26, 2016 | |
Equity [Abstract] | |
Equity | Equity Changes in total equity (in millions) : Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Attributable to Starbucks Noncontrolling interest Total Equity Attributable to Starbucks Noncontrolling interest Total Equity Beginning balance of total equity $ 5,818.0 $ 1.8 $ 5,819.8 $ 5,272.0 $ 1.7 $ 5,273.7 Net earnings including noncontrolling interests 2,016.8 0.4 2,017.2 2,104.9 1.9 2,106.8 Translation adjustment and other, net of reclassifications and tax 91.3 — 91.3 (121.3 ) (31.1 ) (152.4 ) Unrealized gains/(losses), net of reclassifications and tax (20.5 ) — (20.5 ) (4.0 ) — (4.0 ) Other comprehensive income/(loss) 70.8 — 70.8 (125.3 ) (31.1 ) (156.4 ) Stock-based compensation expense 159.6 — 159.6 157.6 — 157.6 Exercise of stock options/vesting of RSUs 115.4 — 115.4 153.2 — 153.2 Sale of common stock 12.7 — 12.7 17.5 — 17.5 Repurchase of common stock (1,590.4 ) — (1,590.4 ) (975.9 ) — (975.9 ) Cash dividends declared (881.1 ) — (881.1 ) (718.2 ) — (718.2 ) Noncontrolling interest resulting from acquisition — — — — 411.1 411.1 Purchase of noncontrolling interests — — — (29.3 ) (381.8 ) (411.1 ) Ending balance of total equity $ 5,721.8 $ 2.2 $ 5,724.0 $ 5,856.5 $ 1.8 $ 5,858.3 Changes in AOCI by component, net of tax (in millions) : Quarter Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total June 26, 2016 Net gains/(losses) in AOCI, beginning of period $ 2.9 $ (3.8 ) $ 1.3 $ (189.6 ) $ (189.2 ) Net gains/(losses) recognized in OCI before reclassifications (2.6 ) (35.6 ) — 54.7 16.5 Net (gains)/losses reclassified from AOCI to earnings (0.6 ) 44.7 — — 44.1 Other comprehensive income/(loss) attributable to Starbucks (3.2 ) 9.1 — 54.7 60.6 Net gains/(losses) in AOCI, end of period $ (0.3 ) $ 5.3 $ 1.3 $ (134.9 ) $ (128.6 ) June 28, 2015 Net gains/(losses) in AOCI, beginning of period $ 0.4 $ 46.6 $ 1.3 $ (165.2 ) $ (116.9 ) Net gains/(losses) recognized in OCI before reclassifications (1.1 ) 25.1 — (11.0 ) 13.0 Net (gains)/losses reclassified from AOCI to earnings (0.5 ) (26.7 ) — — (27.2 ) Other comprehensive income/(loss) attributable to Starbucks (1.6 ) (1.6 ) — (11.0 ) (14.2 ) Net gains/(losses) in AOCI, end of period $ (1.2 ) $ 45.0 $ 1.3 $ (176.2 ) $ (131.1 ) Three Quarters Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total June 26, 2016 Net gains/(losses) in AOCI, beginning of period $ (0.1 ) $ 25.6 $ 1.3 $ (226.2 ) $ (199.4 ) Net gains/(losses) recognized in OCI before reclassifications 0.4 (83.2 ) — 91.3 8.5 Net (gains)/losses reclassified from AOCI to earnings (0.6 ) 62.9 — — 62.3 Other comprehensive income/(loss) attributable to Starbucks (0.2 ) (20.3 ) — 91.3 70.8 Net gains/(losses) in AOCI, end of period $ (0.3 ) $ 5.3 $ 1.3 $ (134.9 ) $ (128.6 ) June 28, 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 0.2 73.6 2.7 (135.6 ) (59.1 ) Net (gains)/losses reclassified from AOCI to earnings (1.0 ) (74.9 ) (4.6 ) 14.3 (66.2 ) Other comprehensive income/(loss) attributable to Starbucks (0.8 ) (1.3 ) (1.9 ) (121.3 ) (125.3 ) Purchase of noncontrolling interests — — — (31.1 ) (31.1 ) Net gains/(losses) in AOCI, end of period $ (1.2 ) $ 45.0 $ 1.3 $ (176.2 ) $ (131.1 ) Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions) : Quarter Ended AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Jun 26, 2016 Jun 28, 2015 Gains/(losses) on cash flow hedges Interest rate hedges $ 1.2 $ 1.2 Interest expense Cross-currency swaps (57.6 ) 29.5 Interest income and other, net Foreign currency hedges 0.1 3.7 Revenues Foreign currency/coffee hedges 1.6 3.0 Cost of sales including occupancy costs (54.7 ) 37.4 Total before tax 10.0 (10.7 ) Tax (expense)/benefit $ (44.7 ) $ 26.7 Net of tax Three Quarters Ended AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Jun 26, 2016 Jun 28, 2015 Gains/(losses) on cash flow hedges Interest rate hedges $ 4.0 $ 3.8 Interest expense Cross-currency swaps (95.8 ) 82.0 Interest income and other, net Foreign currency hedges 5.5 9.6 Revenues Foreign currency/coffee hedges 11.9 4.1 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 (74.4 ) 92.4 Total before tax 11.5 (27.2 ) Tax (expense)/benefit $ (62.9 ) $ 65.2 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. In addition to 2.4 billion shares of authorized common stock with $0.001 par value per share, the Company has authorized 7.5 million shares of preferred stock, none of which was outstanding as of June 26, 2016 . We repurchased 27.6 million shares of common stock at a total cost of $1.6 billion , and 20.7 million shares at a total cost of $975.9 million for three quarters ended June 26, 2016 and June 28, 2015 , respectively. On April 21, 2016 , we announced that our Board of Directors approved an increase of 100 million shares to our ongoing share repurchase program. As of June 26, 2016 , 125.1 million shares remained available for repurchase under our ongoing share repurchase program. During the third quarter of fiscal 2016 , our Board of Directors declared a quarterly cash dividend to shareholders of $0.20 per share to be paid on August 19, 2016 to shareholders of record as of the close of business on August 4, 2016 . |
Employee Stock Plans
Employee Stock Plans | 9 Months Ended |
Jun. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Plans | Employee Stock Plans As of June 26, 2016 , there were 86.2 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 14.1 million shares available for issuance under our employee stock purchase plan. Stock-based compensation expense recognized in the consolidated statements of earnings (in millions) : Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Options $ 9.2 $ 8.3 $ 32.2 $ 28.9 Restricted Stock Units (“RSUs”) 40.6 43.7 126.2 127.3 Total stock-based compensation expense $ 49.8 $ 52.0 $ 158.4 $ 156.2 Stock option and RSU transactions from September 27, 2015 through June 26, 2016 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, September 27, 2015 33.6 10.7 Granted 5.9 4.0 Options exercised/RSUs vested (5.5 ) (4.9 ) Forfeited/expired (1.5 ) (1.3 ) Options outstanding/Nonvested RSUs, June 26, 2016 32.5 8.5 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 26, 2016 $ 46.5 $ 157.3 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 26, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Calculation of net earnings per common share (“EPS”) — basic and diluted ( in millions, except EPS ): Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Net earnings attributable to Starbucks $ 754.1 $ 626.7 $ 2,016.8 $ 2,104.9 Weighted average common shares outstanding (for basic calculation) 1,465.3 1,498.5 1,474.4 1,499.3 Dilutive effect of outstanding common stock options and RSUs 14.0 17.2 15.3 17.0 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,479.3 1,515.7 1,489.7 1,516.3 EPS — basic $ 0.51 $ 0.42 $ 1.37 $ 1.40 EPS — diluted $ 0.51 $ 0.41 $ 1.35 $ 1.39 Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and nonvested) and nonvested 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. Out-of-the-money stock options totaled approximately 5.3 million as of June 26, 2016 . There were no out-of-the money stock options as of June 28, 2015 . |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jun. 26, 2016 | |
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. The table below presents financial information for our reportable operating segments and All Other Segments (in millions) : Quarter Ended Americas China/ Asia Pacific EMEA Channel Development All Other Segments Segment Total June 26, 2016 Total net revenues $ 3,645.5 $ 768.2 $ 273.4 $ 440.8 $ 110.1 $ 5,238.0 Depreciation and amortization expenses 149.2 45.7 10.3 0.7 3.1 209.0 Income from equity investees — 40.2 — 42.3 — 82.5 Operating income/(loss) 898.5 182.8 29.9 187.8 (14.9 ) 1,284.1 June 28, 2015 Total net revenues $ 3,414.6 $ 652.7 $ 294.7 $ 403.6 $ 115.6 $ 4,881.2 Depreciation and amortization expenses 130.8 41.2 12.4 0.7 4.3 189.4 Income from equity investees — 27.6 0.9 31.8 — 60.3 Operating income/(loss) 855.3 150.0 36.0 143.4 (13.1 ) 1,171.6 Three Quarters Ended Americas China/ Asia Pacific EMEA Channel Development All Other Segments Segment Total June 26, 2016 Total net revenues $ 10,827.2 $ 2,099.6 $ 854.7 $ 1,414.0 $ 409.2 $ 15,604.7 Depreciation and amortization expenses 441.6 131.7 32.4 2.1 10.1 617.9 Income from equity investees — 104.3 1.5 106.5 — 212.3 Operating income/(loss) 2,645.1 439.2 105.8 563.0 (28.1 ) 3,725.0 June 28, 2015 Total net revenues $ 9,909.5 $ 1,743.6 $ 908.4 $ 1,274.2 $ 412.2 $ 14,247.9 Depreciation and amortization expenses 386.5 106.3 38.9 2.0 12.2 545.9 Income from equity investees — 85.8 2.1 80.1 — 168.0 Operating income/(loss) 2,382.5 370.5 115.2 456.7 (6.8 ) 3,318.1 Reconciliation of total segment operating income to consolidated earnings before income taxes (in millions) : Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Total segment operating income $ 1,284.1 $ 1,171.6 $ 3,725.0 $ 3,318.1 Unallocated corporate operating expenses (261.8 ) (233.0 ) (780.5 ) (686.5 ) Consolidated operating income 1,022.3 938.6 2,944.5 2,631.6 Gain resulting from acquisition of joint venture — — — 390.6 Interest income and other, net 72.9 25.5 95.5 36.6 Interest expense (21.8 ) (19.1 ) (56.6 ) (52.3 ) Earnings before income taxes $ 1,073.4 $ 945.0 $ 2,983.4 $ 3,006.5 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 26, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the measurement and recognition of credit losses on most financial assets. For trade receivables, loans, and held-to-maturity debt securities, the current probable loss recognition methodology is being replaced by an expected credit loss model. For available-for-sale debt securities, the recognition model on credit losses is generally unchanged, except the losses will be presented as an adjustable allowance. The guidance will be applied retrospectively with the cumulative effect recognized as of the date of adoption. The guidance will become effective at the beginning of our first quarter of fiscal 2021 but can be adopted as early as the beginning of our first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. In March 2016, the FASB issued guidance related to stock-based compensation, which changes the accounting and classification of excess tax benefits and minimum tax withholdings on share-based awards. The guidance becomes effective on a prospective basis 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. Additionally, in March 2016, the FASB issued guidance for financial liabilities resulting from selling prepaid stored value products that are redeemable at third-party merchants. Under the new guidance, expected breakage amounts associated with these products must be recognized proportionately in earnings as redemption occurs. Our current accounting policy of applying the remote method to all of our stored value cards, including cards redeemable at the third-party licensed locations, will no longer be allowed. The guidance will become effective at the beginning of our first quarter of fiscal 2019, with the option to adopt in an earlier period. As the guidance and timing of transition are consistent with the new revenue recognition standard issued by the FASB in May 2014 and discussed below, we expect to implement the provisions of both sets of guidance in the same period. In February 2016, the FASB issued guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of our first quarter of fiscal 2020, with optional practical expedients, but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements but expect this adoption will result in a significant increase in the assets and liabilities on our consolidated balance sheet. In January 2016, the FASB issued guidance on the recognition and measurement of financial instruments. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The new guidance will result in a cumulative effect adjustment recognized in our balance sheet and will become effective for us at the beginning of our first quarter of fiscal 2019. We are currently evaluating the impact of this guidance. In November 2015, the FASB issued guidance on the presentation of deferred income taxes that requires deferred tax assets and liabilities, along with related valuation allowances, to be classified as noncurrent on the balance sheet. As a result, each tax jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. During the first quarter of fiscal 2016, we elected to early-adopt this guidance retrospectively. The following table summarizes the adjustments made to conform prior period classifications to the new guidance ( in millions ): September 27, 2015 As Filed Reclass As Adjusted Current deferred income tax assets $ 381.7 $ (381.7 ) $ — Long-term deferred income tax assets 828.9 351.9 1,180.8 Current deferred income tax liabilities (included in Accrued liabilities) 5.4 (5.4 ) — Long-term deferred income tax liabilities (included in Other long-term liabilities) 67.8 (24.4 ) 43.4 Net deferred tax asset $ 1,137.4 $ — $ 1,137.4 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 or 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 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; however, 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. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Accounting Policies [Abstract] | |
Summary of Adjustments Made to Conform Prior Period Classifications with New Guidance | The following table summarizes the adjustments made to conform prior period classifications to the new guidance ( in millions ): September 27, 2015 As Filed Reclass As Adjusted Current deferred income tax assets $ 381.7 $ (381.7 ) $ — Long-term deferred income tax assets 828.9 351.9 1,180.8 Current deferred income tax liabilities (included in Accrued liabilities) 5.4 (5.4 ) — Long-term deferred income tax liabilities (included in Other long-term liabilities) 67.8 (24.4 ) 43.4 Net deferred tax asset $ 1,137.4 $ — $ 1,137.4 |
Derivative Financial Instrume20
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Gains and Losses Included in AOCI and Expected to be Reclassified into Earnings in 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) Included in AOCI Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Outstanding Contract Remaining Maturity (Months) Jun 26, Sep 27, Cash Flow Hedges: Interest rates $ 21.3 $ 30.1 $ 2.9 0 Cross-currency swaps (9.8 ) (27.8 ) — 102 Foreign currency - other (1.8 ) 29.0 2.2 34 Coffee (4.3 ) (5.7 ) (3.9 ) 6 Net Investment Hedges: Foreign currency 1.3 1.3 — 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 ): Quarter Ended Three Quarters Ended Gains/(Losses) Recognized in OCI Before Reclassifications Gains/(Losses) Reclassified from AOCI to Earnings Gains/(Losses) Recognized in Gains/(Losses) Reclassified from AOCI to Earnings Jun 26, Jun 28, Jun 26, Jun 28, Jun 26, Jun 28, Jun 26, Jun 28, Cash Flow Hedges: Interest rates $ (2.0 ) $ (0.7 ) $ 1.2 $ 1.2 $ (10.3 ) $ (7.0 ) $ 4.0 $ 3.8 Cross-currency swaps (28.0 ) 44.0 (57.6 ) 29.5 (72.9 ) 80.3 (95.8 ) 82.0 Foreign currency - other (19.1 ) (7.5 ) 2.2 7.3 (27.9 ) 29.9 18.5 16.9 Coffee 0.8 (1.9 ) (0.5 ) (0.7 ) 0.4 (5.4 ) (1.1 ) (3.3 ) Net Investment Hedges: Foreign currency — — — — — 4.3 — 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 Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Foreign currency - other $ (7.1 ) $ 2.5 $ (9.0 ) $ 25.8 Dairy 2.9 0.4 (4.1 ) (2.9 ) Diesel fuel 3.8 1.1 (0.4 ) (7.5 ) |
Notional Amounts of Outstanding Derivative Contracts | Notional amounts of outstanding derivative contracts (in millions) : Jun 26, 2016 Sep 27, 2015 Interest rates $ — $ 125 Cross-currency swaps 718 717 Foreign currency - other 737 577 Coffee 13 38 Dairy 56 43 Diesel fuel 28 14 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
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 $ 2,141.8 $ 2,141.8 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 31.5 — 31.5 — Equity securities 19.9 — 19.9 — Foreign government obligations 5.0 — 5.0 — U.S. government treasury securities 51.9 51.9 — — State and local government obligations 0.5 — 0.5 — Mortgage and other asset-backed securities 0.2 — 0.2 — Total available-for-sale securities 109.0 51.9 57.1 — Trading securities 65.5 65.5 — — Total short-term investments 174.5 117.4 57.1 — Prepaid expenses and other current assets: Derivative assets 27.4 3.8 23.6 — Long-term investments: Available-for-sale securities Agency obligations 22.0 — 22.0 — Corporate debt securities 312.4 — 312.4 — Auction rate securities 5.7 — — 5.7 Foreign government obligations 36.3 — 36.3 — U.S. government treasury securities 307.6 307.6 — — State and local government obligations 16.0 — 16.0 — Mortgage and other asset-backed securities 119.5 — 119.5 — Total long-term investments 819.5 307.6 506.2 5.7 Other long-term assets: Derivative assets 10.3 — 10.3 — Total assets $ 3,173.5 $ 2,570.6 $ 597.2 $ 5.7 Liabilities: Accrued liabilities: Derivative liabilities $ 32.5 $ 0.9 $ 31.6 $ — Other long-term liabilities: Derivative liabilities 67.7 — 67.7 — Total liabilities $ 100.2 $ 0.9 $ 99.3 $ — 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 $ 33.7 $ 3.6 $ 30.1 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Jun 26, 2016 Sep 27, 2015 Jun 28, 2015 Coffee: Unroasted $ 625.2 $ 529.4 $ 529.5 Roasted 269.8 279.7 240.6 Other merchandise held for sale 243.7 318.3 226.2 Packaging and other supplies 186.4 179.0 169.7 Total $ 1,325.1 $ 1,306.4 $ 1,166.0 |
Supplemental Balance Sheet In23
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Property, Plant And Equipment, net | Jun 26, 2016 Sep 27, 2015 Land $ 46.6 $ 46.6 Buildings 443.7 411.5 Leasehold improvements 5,697.9 5,409.6 Store equipment 1,851.3 1,707.5 Roasting equipment 593.1 542.4 Furniture, fixtures and other 1,376.4 1,281.7 Work in progress 292.8 242.5 Property, plant and equipment, gross 10,301.8 9,641.8 Accumulated depreciation (5,942.6 ) (5,553.5 ) Property, plant and equipment, net $ 4,359.2 $ 4,088.3 |
Accrued Liabilities | Jun 26, 2016 Sep 27, 2015 Accrued compensation and related costs $ 544.3 $ 522.3 Accrued occupancy costs 142.9 137.2 Accrued taxes 185.6 259.0 Accrued dividends payable 293.3 297.0 Other 548.4 539.8 Total accrued liabilities $ 1,714.5 $ 1,755.3 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt Including Associated Interest Rates and Related Estimated Fair Values | Components of long-term debt including the associated interest rates and related estimated fair values by calendar maturity ( in millions, except interest rates) : Jun 26, 2016 Sep 27, 2015 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 % 2018 notes 350.0 358 350.0 354 2.000 % 2.012 % 2021 notes 500.0 512 — — 2.100 % 2.293 % 2021 notes 250.0 256 — — 2.100 % 1.600 % 2022 notes 500.0 527 500.0 503 2.700 % 2.819 % 2023 notes 750.0 845 750.0 790 3.850 % 2.860 % 2026 notes 500.0 504 — — 2.450 % 2.511 % 2045 notes 350.0 406 350.0 355 4.300 % 4.348 % Total 3,600.0 3,808 2,350.0 2,402 Aggregate unamortized premium/(discount) 2.2 (2.5 ) Total $ 3,602.2 $ 2,347.5 (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. |
Long-Term Debt Maturities | The following table summarizes our long-term debt maturities as of June 26, 2016 by fiscal year ( in millions ): Maturities Total 2016 $ — 2017 400.0 2018 — 2019 350.0 2020 — Thereafter 2,850.0 Total $ 3,600.0 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Equity [Abstract] | |
Changes In Total Equity | Changes in total equity (in millions) : Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Attributable to Starbucks Noncontrolling interest Total Equity Attributable to Starbucks Noncontrolling interest Total Equity Beginning balance of total equity $ 5,818.0 $ 1.8 $ 5,819.8 $ 5,272.0 $ 1.7 $ 5,273.7 Net earnings including noncontrolling interests 2,016.8 0.4 2,017.2 2,104.9 1.9 2,106.8 Translation adjustment and other, net of reclassifications and tax 91.3 — 91.3 (121.3 ) (31.1 ) (152.4 ) Unrealized gains/(losses), net of reclassifications and tax (20.5 ) — (20.5 ) (4.0 ) — (4.0 ) Other comprehensive income/(loss) 70.8 — 70.8 (125.3 ) (31.1 ) (156.4 ) Stock-based compensation expense 159.6 — 159.6 157.6 — 157.6 Exercise of stock options/vesting of RSUs 115.4 — 115.4 153.2 — 153.2 Sale of common stock 12.7 — 12.7 17.5 — 17.5 Repurchase of common stock (1,590.4 ) — (1,590.4 ) (975.9 ) — (975.9 ) Cash dividends declared (881.1 ) — (881.1 ) (718.2 ) — (718.2 ) Noncontrolling interest resulting from acquisition — — — — 411.1 411.1 Purchase of noncontrolling interests — — — (29.3 ) (381.8 ) (411.1 ) Ending balance of total equity $ 5,721.8 $ 2.2 $ 5,724.0 $ 5,856.5 $ 1.8 $ 5,858.3 |
Changes in Components Of Accumulated Other Comprehensive Income, Net Of Tax | Changes in AOCI by component, net of tax (in millions) : Quarter Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total June 26, 2016 Net gains/(losses) in AOCI, beginning of period $ 2.9 $ (3.8 ) $ 1.3 $ (189.6 ) $ (189.2 ) Net gains/(losses) recognized in OCI before reclassifications (2.6 ) (35.6 ) — 54.7 16.5 Net (gains)/losses reclassified from AOCI to earnings (0.6 ) 44.7 — — 44.1 Other comprehensive income/(loss) attributable to Starbucks (3.2 ) 9.1 — 54.7 60.6 Net gains/(losses) in AOCI, end of period $ (0.3 ) $ 5.3 $ 1.3 $ (134.9 ) $ (128.6 ) June 28, 2015 Net gains/(losses) in AOCI, beginning of period $ 0.4 $ 46.6 $ 1.3 $ (165.2 ) $ (116.9 ) Net gains/(losses) recognized in OCI before reclassifications (1.1 ) 25.1 — (11.0 ) 13.0 Net (gains)/losses reclassified from AOCI to earnings (0.5 ) (26.7 ) — — (27.2 ) Other comprehensive income/(loss) attributable to Starbucks (1.6 ) (1.6 ) — (11.0 ) (14.2 ) Net gains/(losses) in AOCI, end of period $ (1.2 ) $ 45.0 $ 1.3 $ (176.2 ) $ (131.1 ) Three Quarters Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total June 26, 2016 Net gains/(losses) in AOCI, beginning of period $ (0.1 ) $ 25.6 $ 1.3 $ (226.2 ) $ (199.4 ) Net gains/(losses) recognized in OCI before reclassifications 0.4 (83.2 ) — 91.3 8.5 Net (gains)/losses reclassified from AOCI to earnings (0.6 ) 62.9 — — 62.3 Other comprehensive income/(loss) attributable to Starbucks (0.2 ) (20.3 ) — 91.3 70.8 Net gains/(losses) in AOCI, end of period $ (0.3 ) $ 5.3 $ 1.3 $ (134.9 ) $ (128.6 ) June 28, 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 0.2 73.6 2.7 (135.6 ) (59.1 ) Net (gains)/losses reclassified from AOCI to earnings (1.0 ) (74.9 ) (4.6 ) 14.3 (66.2 ) Other comprehensive income/(loss) attributable to Starbucks (0.8 ) (1.3 ) (1.9 ) (121.3 ) (125.3 ) Purchase of noncontrolling interests — — — (31.1 ) (31.1 ) Net gains/(losses) in AOCI, end of period $ (1.2 ) $ 45.0 $ 1.3 $ (176.2 ) $ (131.1 ) |
Impact of Reclassifications from Accumulated Other Comprehensive Income on Earnings | Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions) : Quarter Ended AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Jun 26, 2016 Jun 28, 2015 Gains/(losses) on cash flow hedges Interest rate hedges $ 1.2 $ 1.2 Interest expense Cross-currency swaps (57.6 ) 29.5 Interest income and other, net Foreign currency hedges 0.1 3.7 Revenues Foreign currency/coffee hedges 1.6 3.0 Cost of sales including occupancy costs (54.7 ) 37.4 Total before tax 10.0 (10.7 ) Tax (expense)/benefit $ (44.7 ) $ 26.7 Net of tax Three Quarters Ended AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Jun 26, 2016 Jun 28, 2015 Gains/(losses) on cash flow hedges Interest rate hedges $ 4.0 $ 3.8 Interest expense Cross-currency swaps (95.8 ) 82.0 Interest income and other, net Foreign currency hedges 5.5 9.6 Revenues Foreign currency/coffee hedges 11.9 4.1 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 (74.4 ) 92.4 Total before tax 11.5 (27.2 ) Tax (expense)/benefit $ (62.9 ) $ 65.2 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 Plans (Tables)
Employee Stock Plans (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense Recognized in Consolidated Statements of Earnings | Stock-based compensation expense recognized in the consolidated statements of earnings (in millions) : Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Options $ 9.2 $ 8.3 $ 32.2 $ 28.9 Restricted Stock Units (“RSUs”) 40.6 43.7 126.2 127.3 Total stock-based compensation expense $ 49.8 $ 52.0 $ 158.4 $ 156.2 |
Stock Option and RSU Transactions | Stock option and RSU transactions from September 27, 2015 through June 26, 2016 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, September 27, 2015 33.6 10.7 Granted 5.9 4.0 Options exercised/RSUs vested (5.5 ) (4.9 ) Forfeited/expired (1.5 ) (1.3 ) Options outstanding/Nonvested RSUs, June 26, 2016 32.5 8.5 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 26, 2016 $ 46.5 $ 157.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
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 ): Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Net earnings attributable to Starbucks $ 754.1 $ 626.7 $ 2,016.8 $ 2,104.9 Weighted average common shares outstanding (for basic calculation) 1,465.3 1,498.5 1,474.4 1,499.3 Dilutive effect of outstanding common stock options and RSUs 14.0 17.2 15.3 17.0 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,479.3 1,515.7 1,489.7 1,516.3 EPS — basic $ 0.51 $ 0.42 $ 1.37 $ 1.40 EPS — diluted $ 0.51 $ 0.41 $ 1.35 $ 1.39 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jun. 26, 2016 | |
Segment Reporting [Abstract] | |
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 (in millions) : Quarter Ended Americas China/ Asia Pacific EMEA Channel Development All Other Segments Segment Total June 26, 2016 Total net revenues $ 3,645.5 $ 768.2 $ 273.4 $ 440.8 $ 110.1 $ 5,238.0 Depreciation and amortization expenses 149.2 45.7 10.3 0.7 3.1 209.0 Income from equity investees — 40.2 — 42.3 — 82.5 Operating income/(loss) 898.5 182.8 29.9 187.8 (14.9 ) 1,284.1 June 28, 2015 Total net revenues $ 3,414.6 $ 652.7 $ 294.7 $ 403.6 $ 115.6 $ 4,881.2 Depreciation and amortization expenses 130.8 41.2 12.4 0.7 4.3 189.4 Income from equity investees — 27.6 0.9 31.8 — 60.3 Operating income/(loss) 855.3 150.0 36.0 143.4 (13.1 ) 1,171.6 Three Quarters Ended Americas China/ Asia Pacific EMEA Channel Development All Other Segments Segment Total June 26, 2016 Total net revenues $ 10,827.2 $ 2,099.6 $ 854.7 $ 1,414.0 $ 409.2 $ 15,604.7 Depreciation and amortization expenses 441.6 131.7 32.4 2.1 10.1 617.9 Income from equity investees — 104.3 1.5 106.5 — 212.3 Operating income/(loss) 2,645.1 439.2 105.8 563.0 (28.1 ) 3,725.0 June 28, 2015 Total net revenues $ 9,909.5 $ 1,743.6 $ 908.4 $ 1,274.2 $ 412.2 $ 14,247.9 Depreciation and amortization expenses 386.5 106.3 38.9 2.0 12.2 545.9 Income from equity investees — 85.8 2.1 80.1 — 168.0 Operating income/(loss) 2,382.5 370.5 115.2 456.7 (6.8 ) 3,318.1 |
Reconciliation Of Total Segment Operating Income To Consolidated Earnings Before Income Taxes | Reconciliation of total segment operating income to consolidated earnings before income taxes (in millions) : Quarter Ended Three Quarters Ended Jun 26, 2016 Jun 28, 2015 Jun 26, 2016 Jun 28, 2015 Total segment operating income $ 1,284.1 $ 1,171.6 $ 3,725.0 $ 3,318.1 Unallocated corporate operating expenses (261.8 ) (233.0 ) (780.5 ) (686.5 ) Consolidated operating income 1,022.3 938.6 2,944.5 2,631.6 Gain resulting from acquisition of joint venture — — — 390.6 Interest income and other, net 72.9 25.5 95.5 36.6 Interest expense (21.8 ) (19.1 ) (56.6 ) (52.3 ) Earnings before income taxes $ 1,073.4 $ 945.0 $ 2,983.4 $ 3,006.5 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Effects of Early Adoption of New Accounting Pronouncement (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Long-term deferred income tax assets | $ 822.8 | $ 1,180.8 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Current deferred income tax assets | 0 | |
Long-term deferred income tax assets | 1,180.8 | |
Current deferred income tax liabilities (included in Accrued liabilities) | 0 | |
Long-term deferred income tax liabilities (included in Other long-term liabilities) | 43.4 | |
Net deferred tax asset | 1,137.4 | |
As Filed [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Current deferred income tax assets | 381.7 | |
Long-term deferred income tax assets | 828.9 | |
Current deferred income tax liabilities (included in Accrued liabilities) | 5.4 | |
Long-term deferred income tax liabilities (included in Other long-term liabilities) | 67.8 | |
Net deferred tax asset | 1,137.4 | |
Reclass [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Current deferred income tax assets | (381.7) | |
Long-term deferred income tax assets | 351.9 | |
Current deferred income tax liabilities (included in Accrued liabilities) | (5.4) | |
Long-term deferred income tax liabilities (included in Other long-term liabilities) | (24.4) | |
Net deferred tax asset | $ 0 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Millions | Oct. 31, 2014 | Jun. 26, 2016 | Dec. 27, 2015 | Jun. 28, 2015 | Dec. 28, 2014 | Jun. 26, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Sep. 27, 2015 | Jun. 26, 2016 | Sep. 28, 2014 |
Business Acquisition [Line Items] | |||||||||||
Gain resulting from acquisition of joint venture | $ 0 | $ 0 | $ 0 | $ 390.6 | |||||||
Germany Retail Operations [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price of retail operations sold | 47.3 | ||||||||||
Gain resulting from divestiture | 30.1 | ||||||||||
Spain JV [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain resulting from divestiture | $ 0.6 | ||||||||||
Preexisting ownership percentage in equity method investment | 49.00% | ||||||||||
Purchase price of joint venture sold | $ 30.2 | ||||||||||
Starbucks Coffee Japan Ltd Member | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Preexisting ownership percentage in equity method investment | 39.50% | ||||||||||
Remaining Ownership Interest in Equity Method Investee to be Acquired | 60.50% | ||||||||||
Cash paid to acquire additional ownership interest in Starbucks Japan | $ 509 | $ 362 | $ 876 | ||||||||
Acquisition date | Oct. 31, 2014 | ||||||||||
Goodwill, effect of foreign currency translation | $ 46 | ||||||||||
Intangible assets, effect of foreign currency translation | 18.2 | ||||||||||
Goodwill | 861.6 | ||||||||||
Intangible assets, acquired | 341.2 | ||||||||||
Intangible assets, accumulated amortization | $ 87.4 | $ 87.4 | $ 87.4 | ||||||||
Gain resulting from acquisition of joint venture | $ 390.6 |
Derivative Financial Instrume31
Derivative Financial Instruments (Derivative Gains and Losses Included in AOCI and Expected to be Reclassified into Earnings in 12 Months, Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 26, 2016 | Sep. 27, 2015 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 21.3 | $ 30.1 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 2.9 | |
Outstanding Contract Remaining Maturity (Months) | 0 months | |
Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (9.8) | (27.8) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 102 months | |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (1.8) | 29 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 2.2 | |
Outstanding Contract Remaining Maturity (Months) | 34 months | |
Cash Flow Hedging [Member] | Coffee Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (4.3) | (5.7) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ (3.9) | |
Outstanding Contract Remaining Maturity (Months) | 6 months | |
Net Investment Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 1.3 | $ 1.3 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 0 months |
Derivative Financial Instrume32
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 | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | $ (2) | $ (0.7) | $ (10.3) | $ (7) |
Gains/(Losses) Reclassified from AOCI to Earnings | 1.2 | 1.2 | 4 | 3.8 |
Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (28) | 44 | (72.9) | 80.3 |
Gains/(Losses) Reclassified from AOCI to Earnings | (57.6) | 29.5 | (95.8) | 82 |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (19.1) | (7.5) | (27.9) | 29.9 |
Gains/(Losses) Reclassified from AOCI to Earnings | 2.2 | 7.3 | 18.5 | 16.9 |
Cash Flow Hedging [Member] | Coffee Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 0.8 | (1.9) | 0.4 | (5.4) |
Gains/(Losses) Reclassified from AOCI to Earnings | (0.5) | (0.7) | (1.1) | (3.3) |
Net Investment Hedging [Member] | Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 0 | 0 | 0 | 4.3 |
Gains/(Losses) Reclassified from AOCI to Earnings | $ 0 | $ 0 | $ 0 | $ 7.2 |
Derivative Financial Instrume33
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | $ (7.1) | $ 2.5 | $ (9) | $ 25.8 |
Dairy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | 2.9 | 0.4 | (4.1) | (2.9) |
Diesel Fuel Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | $ 3.8 | $ 1.1 | $ (0.4) | $ (7.5) |
Derivative and Financial Instru
Derivative and Financial Instruments (Notional Amounts of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | $ 0 | $ 125 |
Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 718 | 717 |
Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 737 | 577 |
Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 13 | 38 |
Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 56 | 43 |
Diesel Fuel Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | $ 28 | $ 14 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 |
Assets: | ||
Total short-term investments | $ 174.5 | $ 81.3 |
Available-for-sale securities | 819.5 | 312.5 |
Total Assets | 3,173.5 | 2,029.4 |
Liabilities: | ||
Total Liabilities | 100.2 | 33.7 |
Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 2,141.8 | 1,530.1 |
Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 109 | 15.5 |
Trading securities | 65.5 | 65.8 |
Total short-term investments | 174.5 | 81.3 |
Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 27.4 | 50.8 |
Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 819.5 | 312.5 |
Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets | 10.3 | 54.7 |
Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 32.5 | 19.2 |
Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 67.7 | 14.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Total Assets | 2,570.6 | 1,700.7 |
Liabilities: | ||
Total Liabilities | 0.9 | 3.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 2,141.8 | 1,530.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 51.9 | 0 |
Trading securities | 65.5 | 65.8 |
Total short-term investments | 117.4 | 65.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 3.8 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 307.6 | 104.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 0.9 | 3.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total Assets | 597.2 | 322.8 |
Liabilities: | ||
Total Liabilities | 99.3 | 30.1 |
Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 57.1 | 15.5 |
Trading securities | 0 | 0 |
Total short-term investments | 57.1 | 15.5 |
Significant Other Observable Inputs (Level 2) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 23.6 | 50.8 |
Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 506.2 | 201.8 |
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets | 10.3 | 54.7 |
Significant Other Observable Inputs (Level 2) [Member] | Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 31.6 | 15.6 |
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 67.7 | 14.5 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Total Assets | 5.7 | 5.9 |
Liabilities: | ||
Total Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Total short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 5.7 | 5.9 |
Significant Unobservable Inputs (Level 3) [Member] | Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 31.5 | 10.2 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 312.4 | 121.8 |
Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
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: | ||
Available-for-sale securities | 0 | 0 |
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 31.5 | 10.2 |
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 312.4 | 121.8 |
Corporate Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Corporate Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Equity Securities [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 19.9 | |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 19.9 | |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Foreign Government Obligations [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 5 | 2 |
Foreign Government Obligations [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 36.3 | 18.5 |
Foreign Government Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
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: | ||
Available-for-sale securities | 0 | 0 |
Foreign Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 5 | 2 |
Foreign Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 36.3 | 18.5 |
Foreign Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Foreign Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
U.S. Government Treasury Securities [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 51.9 | |
U.S. Government Treasury Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 307.6 | 104.8 |
U.S. Government Treasury Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 51.9 | |
U.S. Government Treasury Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 307.6 | 104.8 |
U.S. Government Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
U.S. Government Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
U.S. Government Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
U.S. Government Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Agency Obligations [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Agency Obligations [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 22 | 8.6 |
Agency Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Agency Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Agency Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Agency Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 22 | 8.6 |
Agency Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Agency Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Auction Rate Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 5.7 | 5.9 |
Auction Rate Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Auction Rate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Auction Rate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 5.7 | 5.9 |
State and Local Government Obligations [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 3.3 | |
State and Local Government Obligations [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 16 | 9.7 |
State and Local Government Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
State and Local Government Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
State and Local Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 3.3 | |
State and Local Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 16 | 9.7 |
State and Local Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
State and Local Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Mortgage and Other Asset-backed Securities [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0.2 | |
Mortgage and Other Asset-backed Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 119.5 | 43.2 |
Mortgage and Other Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Mortgage and Other Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Mortgage and Other Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0.2 | |
Mortgage and Other Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 119.5 | 43.2 |
Mortgage and Other Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | |
Mortgage and Other Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | $ 0 | $ 0 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) $ in Millions | 3 Months Ended |
Jun. 26, 2016USD ($) | |
Price-to-be-fixed Contract [Member] | |
Inventory [Line Items] | |
Amount of coffee committed to be purchased | $ 433 |
Fixed Price Contract [Member] | |
Inventory [Line Items] | |
Amount of coffee committed to be purchased | 567 |
Future [Member] | Price-to-be-fixed Contract [Member] | |
Inventory [Line Items] | |
Notional amounts of outstanding derivative contracts | $ 13 |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 | Jun. 28, 2015 |
Inventory Disclosure [Abstract] | |||
Unroasted coffee | $ 625.2 | $ 529.4 | $ 529.5 |
Roasted coffee | 269.8 | 279.7 | 240.6 |
Other merchandise held for sale | 243.7 | 318.3 | 226.2 |
Packaging and other supplies | 186.4 | 179 | 169.7 |
Total | $ 1,325.1 | $ 1,306.4 | $ 1,166 |
Supplemental Balance Sheet In38
Supplemental Balance Sheet Information (Property, Plant And Equipment, net) (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,301.8 | $ 9,641.8 |
Accumulated depreciation | (5,942.6) | (5,553.5) |
Property, plant and equipment, net | 4,359.2 | 4,088.3 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46.6 | 46.6 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 443.7 | 411.5 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,697.9 | 5,409.6 |
Store Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,851.3 | 1,707.5 |
Roasting Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 593.1 | 542.4 |
Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,376.4 | 1,281.7 |
Work in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 292.8 | $ 242.5 |
Supplemental Balance Sheet In39
Supplemental Balance Sheet Information (Accrued Liabilities) (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and related costs | $ 544.3 | $ 522.3 |
Accrued occupancy costs | 142.9 | 137.2 |
Accrued taxes | 185.6 | 259 |
Accrued dividends payable | 293.3 | 297 |
Other | 548.4 | 539.8 |
Total accrued liabilities | $ 1,714.5 | $ 1,755.3 |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2016 | Feb. 29, 2016 | Jun. 26, 2016 | Jun. 26, 2016 | Mar. 27, 2016 | Sep. 27, 2015 | |
Debt Instrument [Line Items] | ||||||
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 June 26, 2016, we were in compliance with all applicable covenants. | |||||
Commercial Paper [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Maximum allowable amount under Commercial Paper Program | $ 1,000 | $ 1,000 | ||||
Outstanding commercial paper | 0 | $ 0 | ||||
Maximum [Member] | Commercial Paper [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Maximum allowable maturity period of credit under Commercial Paper Program | 397 days | |||||
Two Point Four Five Percentage Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Issuance Date | May 11, 2016 | |||||
Debt Instrument, Face Value | $ 500 | $ 500 | $ 0 | |||
Stated Interest Rate | 2.45% | 2.45% | ||||
Debt Instrument, Maturity | Jun. 15, 2026 | |||||
Two Point One Percentage Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Issuance Date | May 11, 2016 | Feb. 4, 2016 | ||||
Debt Instrument, Face Value from Reopening of Previous Issuance | $ 250 | $ 250 | 0 | |||
Debt Instrument, Face Value | $ 500 | $ 500 | $ 500 | $ 0 | ||
Stated Interest Rate | 2.10% | 2.10% | 2.10% | |||
Debt Instrument, Maturity | Feb. 4, 2021 | |||||
Debt Instrument, Face Amount for 2021 Notes Collectively | $ 750 | $ 750 |
Debt (Components of Long-Term D
Debt (Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values) (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Mar. 27, 2016 | Sep. 27, 2015 | |
Debt Instrument [Line Items] | ||||
Total, Face Value | $ 3,600 | $ 2,350 | ||
Total, Estimated Fair Value | 3,808 | 2,402 | ||
Aggregate unamortized premium/(discount) | 2.2 | (2.5) | ||
Total, Carrying Value, net of aggregate unamortized discount | 3,602.2 | 2,347.5 | ||
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 | [1] | 0.941% | ||
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 | [1] | 2.012% | ||
Two Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Value | $ 500 | $ 500 | 0 | |
Debt Instrument, Face Value from Reopening of Previous Issuance | $ 250 | 0 | ||
Stated Interest Rate | 2.10% | 2.10% | ||
Effective Interest Rate | [1] | 2.293% | ||
Effective Interest Rate for Reopening of Previous Issuance | 1.60% | |||
Two Point Seven Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Value | $ 500 | 500 | ||
Stated Interest Rate | 2.70% | |||
Effective Interest Rate | [1] | 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 | [1] | 2.86% | ||
Two Point Four Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Value | $ 500 | 0 | ||
Stated Interest Rate | 2.45% | |||
Effective Interest Rate | [1] | 2.511% | ||
Four Point Three Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Value | $ 350 | 350 | ||
Stated Interest Rate | 4.30% | |||
Effective Interest Rate | [1] | 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] | Two Point Zero Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 358 | 354 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 512 | 0 | ||
Estimated Fair Value from Reopening of Previous Issuance | 256 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Seven Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 527 | 503 | ||
Fair Value, Inputs, Level 2 [Member] | Three Point Eight Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 845 | 790 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Four Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 504 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Four Point Three Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | $ 406 | $ 355 | ||
[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. |
Debt Debt (Summary of long-term
Debt Debt (Summary of long-term debt maturities) (Details) - USD ($) $ in Millions | Jun. 26, 2016 | Sep. 27, 2015 |
Debt Disclosure [Abstract] | ||
2,016 | $ 0 | |
2,017 | 400 | |
2,018 | 0 | |
2,019 | 350 | |
2,020 | 0 | |
Thereafter | 2,850 | |
Total | $ 3,600 | $ 2,350 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 26, 2016 | Jun. 26, 2016 | Jun. 28, 2015 | Apr. 21, 2016 | Sep. 27, 2015 | |
Equity [Abstract] | |||||
Authorized shares of common stock | 2,400,000,000 | 2,400,000,000 | 2,400,000,000 | ||
Par value of common stock | $ 0.001 | $ 0.001 | $ 0.001 | ||
Authorized shares of preferred stock | 7,500,000 | 7,500,000 | |||
Outstanding shares of preferred stock | 0 | 0 | |||
Shares of common stock repurchased | 27,600,000 | 20,700,000 | |||
Total cost of common stock repurchased | $ 1,590.4 | $ 975.9 | |||
Shares available for repurchase | 125,100,000 | 125,100,000 | |||
Stock Repurchase Program, Additional Number of Shares Authorized to be Repurchased | 100,000,000 | ||||
Cash dividend declared to shareholders | $ 0.20 | $ 0.20 | |||
Dividends payable, payment date | Aug. 19, 2016 | ||||
Dividends payable, record date | Aug. 4, 2016 |
Equity (Changes In Total Equity
Equity (Changes In Total Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Beginning balance of total equity | $ 5,819.8 | $ 5,273.7 | ||
Net earnings including noncontrolling interests | $ 754.5 | $ 626.5 | 2,017.2 | 2,106.8 |
Translation adjustment, net of reclassifications and tax | 91.3 | (152.4) | ||
Unrealized gains/(losses), net of reclassifications and tax | (20.5) | (4) | ||
Other comprehensive income/(loss) | 60.6 | (14.2) | 70.8 | (156.4) |
Stock-based compensation expense | 159.6 | 157.6 | ||
Exercise of stock options/vesting of RSUs | 115.4 | 153.2 | ||
Sale of common stock | 12.7 | 17.5 | ||
Repurchase of common stock | (1,590.4) | (975.9) | ||
Cash dividends declared | (881.1) | (718.2) | ||
Noncontrolling interest resulting from acquisition | 0 | 411.1 | ||
Purchase of noncontrolling interests | 0 | 411.1 | ||
Ending balance of total equity | 5,724 | 5,858.3 | 5,724 | 5,858.3 |
Parent [Member] | ||||
Beginning balance of total equity | 5,818 | 5,272 | ||
Net earnings including noncontrolling interests | 2,016.8 | 2,104.9 | ||
Translation adjustment, net of reclassifications and tax | 91.3 | (121.3) | ||
Unrealized gains/(losses), net of reclassifications and tax | (20.5) | (4) | ||
Other comprehensive income/(loss) | 60.6 | (14.2) | 70.8 | (125.3) |
Stock-based compensation expense | 159.6 | 157.6 | ||
Exercise of stock options/vesting of RSUs | 115.4 | 153.2 | ||
Sale of common stock | 12.7 | 17.5 | ||
Repurchase of common stock | (1,590.4) | (975.9) | ||
Cash dividends declared | (881.1) | (718.2) | ||
Noncontrolling interest resulting from acquisition | 0 | 0 | ||
Purchase of noncontrolling interests | 0 | 29.3 | ||
Ending balance of total equity | 5,721.8 | 5,856.5 | 5,721.8 | 5,856.5 |
Noncontrolling Interest [Member] | ||||
Beginning balance of total equity | 1.8 | 1.7 | ||
Net earnings including noncontrolling interests | 0.4 | 1.9 | ||
Translation adjustment, net of reclassifications and tax | 0 | (31.1) | ||
Unrealized gains/(losses), net of reclassifications and tax | 0 | 0 | ||
Other comprehensive income/(loss) | 0 | (31.1) | ||
Stock-based compensation expense | 0 | 0 | ||
Exercise of stock options/vesting of RSUs | 0 | 0 | ||
Sale of common stock | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Cash dividends declared | 0 | 0 | ||
Noncontrolling interest resulting from acquisition | 0 | 411.1 | ||
Purchase of noncontrolling interests | 0 | 381.8 | ||
Ending balance of total equity | $ 2.2 | $ 1.8 | $ 2.2 | $ 1.8 |
Equity (Components Of Accumulat
Equity (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI at beginning of period | $ (199.4) | |||
Other comprehensive income/(loss) | $ 60.6 | $ (14.2) | 70.8 | $ (156.4) |
Net gains/(losses) in AOCI at end of period | (128.6) | (128.6) | ||
Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI at beginning of period | (189.2) | (116.9) | (199.4) | 25.3 |
Net gains/(losses) recognized in OCI before reclassifications | 16.5 | 13 | 8.5 | (59.1) |
Net (gains)/losses reclassified from AOCI to earnings | 44.1 | (27.2) | 62.3 | (66.2) |
Other comprehensive income/(loss) | 60.6 | (14.2) | 70.8 | (125.3) |
Purchase of noncontrolling interests | (31.1) | |||
Net gains/(losses) in AOCI at end of period | (128.6) | (131.1) | (128.6) | (131.1) |
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI at beginning of period | 2.9 | 0.4 | (0.1) | (0.4) |
Net gains/(losses) recognized in OCI before reclassifications | (2.6) | (1.1) | 0.4 | 0.2 |
Net (gains)/losses reclassified from AOCI to earnings | (0.6) | (0.5) | (0.6) | (1) |
Other comprehensive income/(loss) | (3.2) | (1.6) | (0.2) | (0.8) |
Purchase of noncontrolling interests | 0 | |||
Net gains/(losses) in AOCI at end of period | (0.3) | (1.2) | (0.3) | (1.2) |
Cash Flow Hedging [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI at beginning of period | (3.8) | 46.6 | 25.6 | 46.3 |
Net gains/(losses) recognized in OCI before reclassifications | (35.6) | 25.1 | (83.2) | 73.6 |
Net (gains)/losses reclassified from AOCI to earnings | 44.7 | (26.7) | 62.9 | (74.9) |
Other comprehensive income/(loss) | 9.1 | (1.6) | (20.3) | (1.3) |
Purchase of noncontrolling interests | 0 | |||
Net gains/(losses) in AOCI at end of period | 5.3 | 45 | 5.3 | 45 |
Net Investment Hedging [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI at beginning of period | 1.3 | 1.3 | 1.3 | 3.2 |
Net gains/(losses) recognized in OCI before reclassifications | 0 | 0 | 0 | 2.7 |
Net (gains)/losses reclassified from AOCI to earnings | 0 | 0 | 0 | (4.6) |
Other comprehensive income/(loss) | 0 | 0 | 0 | (1.9) |
Purchase of noncontrolling interests | 0 | |||
Net gains/(losses) in AOCI at end of period | 1.3 | 1.3 | 1.3 | 1.3 |
Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI at beginning of period | (189.6) | (165.2) | (226.2) | (23.8) |
Net gains/(losses) recognized in OCI before reclassifications | 54.7 | (11) | 91.3 | (135.6) |
Net (gains)/losses reclassified from AOCI to earnings | 0 | 0 | 0 | 14.3 |
Other comprehensive income/(loss) | 54.7 | (11) | 91.3 | (121.3) |
Purchase of noncontrolling interests | (31.1) | |||
Net gains/(losses) in AOCI at end of period | $ (134.9) | $ (176.2) | $ (134.9) | $ (176.2) |
Equity (Impact of Reclassificat
Equity (Impact of Reclassifications from Accumulated Other Comprehensive Income on Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 26, 2016 | Jun. 28, 2015 | Dec. 28, 2014 | Jun. 26, 2016 | Jun. 28, 2015 | Sep. 28, 2014 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amounts Reclassified from AOCI, Interest expense | $ (21.8) | $ (19.1) | $ (56.6) | $ (52.3) | ||||
Amounts Reclassified from AOCI, Interest income and other, net | 72.9 | 25.5 | 95.5 | 36.6 | ||||
Amounts Reclassified from AOCI, Revenues | 5,238 | 4,881.2 | 15,604.7 | 14,247.9 | ||||
Amounts Reclassified from AOCI, Cost of sales including occupancy costs | (2,060.3) | (1,953.9) | (6,256.9) | (5,804.9) | ||||
Gain resulting from acquisition of joint venture | 0 | 0 | 0 | 390.6 | ||||
Amounts Reclassified from AOCI, Tax (expense)/benefit | (318.9) | (318.5) | (966.2) | (899.7) | ||||
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 | (54.7) | 37.4 | (74.4) | 92.4 | ||||
Amounts Reclassified from AOCI, Tax (expense)/benefit | 10 | (10.7) | 11.5 | (27.2) | ||||
Amounts Reclassified from AOCI | (44.7) | 26.7 | (62.9) | 65.2 | ||||
Net Investment Hedging [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amounts Reclassified from AOCI | 0 | 0 | 0 | (4.6) | ||||
Net Investment Hedging [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 | 0 | [1] | 7.2 | |||||
Translation Adjustment [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amounts Reclassified from AOCI | 0 | 0 | 0 | 14.3 | ||||
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] | 0 | (7.1) | |||||
Gain resulting from acquisition of joint venture | [2] | 0 | (7.2) | |||||
Interest Rate Contract [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying 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 | 1.2 | 1.2 | 4 | 3.8 | ||||
Cross-Currency Swap [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying 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 | (57.6) | 29.5 | (95.8) | 82 | ||||
Foreign Currency Contract - Other [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying 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, Revenues | 0.1 | 3.7 | 5.5 | 9.6 | ||||
Foreign Currency and Coffee Contracts [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying 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 | $ 1.6 | $ 3 | $ 11.9 | $ 4.1 | ||||
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 in equity method investment | 39.50% | |||||||
[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 Plans (Narrative
Employee Stock Plans (Narrative) (Details) shares in Millions | Jun. 26, 2016shares |
Stock Options and Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance pursuant to future equity-based compensation awards and ESPP | 86.2 |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance pursuant to future equity-based compensation awards and ESPP | 14.1 |
Employee Stock Plans (Stock-Bas
Employee Stock Plans (Stock-Based Compensation Expense Recognized in Consolidated Statement of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 49.8 | $ 52 | $ 158.4 | $ 156.2 |
Stock Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9.2 | 8.3 | 32.2 | 28.9 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 40.6 | $ 43.7 | $ 126.2 | $ 127.3 |
Employee Stock Plans (Stock Opt
Employee Stock Plans (Stock Option and RSU Transactions) (Details) shares in Millions, $ in Millions | 9 Months Ended |
Jun. 26, 2016USD ($)shares | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, September 27, 2015 | 33.6 |
Granted, Stock Options | 5.9 |
Options exercised, Stock Options | (5.5) |
Forfeited/expired, Stock Options | (1.5) |
Options outstanding, June 26, 2016 | 32.5 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, Stock Options | $ | $ 46.5 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested RSUs, September 27, 2015 | 10.7 |
Granted, RSUs | 4 |
RSUs vested, RSUs | (4.9) |
Forfeited/expired, RSUs | (1.3) |
Nonvested RSUs, June 26, 2016 | 8.5 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, RSUs | $ | $ 157.3 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 9 Months Ended | |
Jun. 26, 2016 | Jun. 28, 2015 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Out-of-the-money stock options | 5.3 | 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 | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Starbucks | $ 754.1 | $ 626.7 | $ 2,016.8 | $ 2,104.9 |
Weighted average common shares outstanding (for basic calculation) | 1,465.3 | 1,498.5 | 1,474.4 | 1,499.3 |
Dilutive effect of outstanding common stock options and RSUs | 14 | 17.2 | 15.3 | 17 |
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,479.3 | 1,515.7 | 1,489.7 | 1,516.3 |
EPS - basic | $ 0.51 | $ 0.42 | $ 1.37 | $ 1.40 |
EPS - diluted | $ 0.51 | $ 0.41 | $ 1.35 | $ 1.39 |
Segment Reporting (Financial In
Segment Reporting (Financial Information For Reportable Operating Segments And All Other Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 5,238 | $ 4,881.2 | $ 15,604.7 | $ 14,247.9 |
Depreciation and amortization expenses | 247.6 | 236.5 | 730.9 | 659.6 |
Income from equity investees | 82.5 | 60.3 | 212.3 | 168 |
Operating income/(loss) | 1,022.3 | 938.6 | 2,944.5 | 2,631.6 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 5,238 | 4,881.2 | 15,604.7 | 14,247.9 |
Depreciation and amortization expenses | 209 | 189.4 | 617.9 | 545.9 |
Income from equity investees | 82.5 | 60.3 | 212.3 | 168 |
Operating income/(loss) | 1,284.1 | 1,171.6 | 3,725 | 3,318.1 |
Operating Segments [Member] | Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 3,645.5 | 3,414.6 | 10,827.2 | 9,909.5 |
Depreciation and amortization expenses | 149.2 | 130.8 | 441.6 | 386.5 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | 898.5 | 855.3 | 2,645.1 | 2,382.5 |
Operating Segments [Member] | China/Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 768.2 | 652.7 | 2,099.6 | 1,743.6 |
Depreciation and amortization expenses | 45.7 | 41.2 | 131.7 | 106.3 |
Income from equity investees | 40.2 | 27.6 | 104.3 | 85.8 |
Operating income/(loss) | 182.8 | 150 | 439.2 | 370.5 |
Operating Segments [Member] | EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 273.4 | 294.7 | 854.7 | 908.4 |
Depreciation and amortization expenses | 10.3 | 12.4 | 32.4 | 38.9 |
Income from equity investees | 0 | 0.9 | 1.5 | 2.1 |
Operating income/(loss) | 29.9 | 36 | 105.8 | 115.2 |
Operating Segments [Member] | Channel Development [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 440.8 | 403.6 | 1,414 | 1,274.2 |
Depreciation and amortization expenses | 0.7 | 0.7 | 2.1 | 2 |
Income from equity investees | 42.3 | 31.8 | 106.5 | 80.1 |
Operating income/(loss) | 187.8 | 143.4 | 563 | 456.7 |
Operating Segments [Member] | All Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 110.1 | 115.6 | 409.2 | 412.2 |
Depreciation and amortization expenses | 3.1 | 4.3 | 10.1 | 12.2 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | $ (14.9) | $ (13.1) | $ (28.1) | $ (6.8) |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation Of Total Segment Operating Income To Consolidated Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 26, 2016 | Jun. 28, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income/(loss) | $ 1,022.3 | $ 938.6 | $ 2,944.5 | $ 2,631.6 |
Gain resulting from acquisition of joint venture | 0 | 0 | 0 | 390.6 |
Interest income and other, net | 72.9 | 25.5 | 95.5 | 36.6 |
Interest expense | (21.8) | (19.1) | (56.6) | (52.3) |
Earnings before income taxes | 1,073.4 | 945 | 2,983.4 | 3,006.5 |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income/(loss) | 1,284.1 | 1,171.6 | 3,725 | 3,318.1 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income/(loss) | $ (261.8) | $ (233) | $ (780.5) | $ (686.5) |