Document And Entity Information
Document And Entity Information - shares shares in Millions | 6 Months Ended | |
Apr. 02, 2017 | Apr. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 2, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SBUX | |
Entity Registrant Name | STARBUCKS CORP | |
Entity Central Index Key | 829,224 | |
Current Fiscal Year End Date | --10-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,448.1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Net revenues: | ||||
Total net revenues | $ 5,294 | $ 4,993.2 | $ 11,027 | $ 10,366.8 |
Cost of sales including occupancy costs | 2,141.2 | 2,010.3 | 4,436.2 | 4,196.5 |
Store operating expenses | 1,586.4 | 1,466.4 | 3,224.6 | 2,972.6 |
Other operating expenses | 134.7 | 139.6 | 280.1 | 285.8 |
Depreciation and amortization expenses | 253.6 | 247.8 | 503.3 | 483.3 |
General and administrative expenses | 326.8 | 330.5 | 683.1 | 636 |
Total operating expenses | 4,442.7 | 4,194.6 | 9,127.3 | 8,574.2 |
Income from equity investees | 84.1 | 65.6 | 168.6 | 129.7 |
Operating income | 935.4 | 864.2 | 2,068.3 | 1,922.3 |
Interest income and other, net | 67.9 | 14.5 | 92 | 22.5 |
Interest expense | (22.9) | (18.3) | (46.7) | (34.8) |
Earnings before income taxes | 980.4 | 860.4 | 2,113.6 | 1,910 |
Income tax expense | 327.6 | 285.4 | 709 | 647.4 |
Net earnings including noncontrolling interests | 652.8 | 575 | 1,404.6 | 1,262.6 |
Net earnings/(loss) attributable to noncontrolling interests | 0 | (0.1) | (0.3) | 0 |
Net earnings attributable to Starbucks | $ 652.8 | $ 575.1 | $ 1,404.9 | $ 1,262.6 |
Earnings per share - basic | $ 0.45 | $ 0.39 | $ 0.97 | $ 0.85 |
Earnings per share - diluted | $ 0.45 | $ 0.39 | $ 0.96 | $ 0.84 |
Weighted average shares outstanding: | ||||
Basic | 1,453.2 | 1,472.1 | 1,455.3 | 1,479 |
Diluted | 1,464.8 | 1,486.6 | 1,467.7 | 1,495 |
Cash dividends declared per share | $ 0.250 | $ 0.20 | $ 0.50 | $ 0.4 |
Company-operated stores [Member] | ||||
Net revenues: | ||||
Total net revenues | $ 4,195.4 | $ 3,944.2 | $ 8,664.7 | $ 8,154.8 |
Licensed stores [Member] | ||||
Net revenues: | ||||
Total net revenues | 546.7 | 493.1 | 1,149.1 | 1,033.8 |
CPG, foodservice and other [Member] | ||||
Net revenues: | ||||
Total net revenues | $ 551.9 | $ 555.9 | $ 1,213.2 | $ 1,178.2 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Net earnings including noncontrolling interests | $ 652.8 | $ 575 | $ 1,404.6 | $ 1,262.6 |
Other comprehensive loss, net of tax: | ||||
Other comprehensive income/(loss) | 35.9 | 35.9 | (98) | 10.2 |
Comprehensive income including noncontrolling interests | 688.7 | 610.9 | 1,306.6 | 1,272.8 |
Comprehensive income/(loss) attributable to noncontrolling interests | 0 | (0.1) | (0.3) | 0 |
Comprehensive income attributable to Starbucks | 688.7 | 611 | 1,306.9 | 1,272.8 |
Available-for-sale Securities [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized holding gains/(losses) on available-for-sale securities, before tax | 1.9 | 3.8 | (11.5) | 4.8 |
Unrealized holding gains/(losses) on available-for-sale securities, tax (expense)/benefit | (0.5) | (1.4) | 3.6 | (1.8) |
Cash Flow Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | (33.5) | (68.1) | 80 | (62.3) |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | 7.7 | 17.4 | (18.8) | 14.7 |
Net Investment Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | (25.2) | 0 | 15.9 | 0 |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | 9.3 | 0 | (5.9) | 0 |
Available-for-sale Securities [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Other comprehensive income/(loss) | 2.3 | 2.1 | (6.4) | 3 |
Cash Flow Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Other comprehensive income/(loss) | (10) | (27.2) | 10.7 | (29.4) |
Net Investment Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Other comprehensive income/(loss) | (15.9) | 0 | 10 | 0 |
Translation Adjustment [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Translation adjustment and other, before tax | 58.6 | 56.1 | (113.2) | 30 |
Translation adjustment and other, tax (expense)/benefit | 0.9 | 4.9 | 0.9 | 6.6 |
Other comprehensive income/(loss) | 59.5 | 61 | (112.3) | 36.6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Other comprehensive 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 | 20.2 | 27.3 | (61.5) | 19.5 |
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, tax expense/(benefit) | $ (3.5) | $ (4.1) | $ 12.5 | $ (1.3) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,163.9 | $ 2,128.8 |
Short-term investments | 231 | 134.4 |
Accounts receivable, net | 791 | 768.8 |
Inventories | 1,323.6 | 1,378.5 |
Prepaid expenses and other current assets | 409.9 | 347.4 |
Total current assets | 4,919.4 | 4,757.9 |
Long-term investments | 1,070.1 | 1,141.7 |
Equity and cost investments | 391.2 | 354.5 |
Property, plant and equipment, net | 4,564.5 | 4,533.8 |
Deferred income taxes, net | 811.2 | 885.4 |
Other long-term assets | 368 | 403.3 |
Other intangible assets | 467.7 | 516.3 |
Goodwill | 1,635.8 | 1,719.6 |
TOTAL ASSETS | 14,227.9 | 14,312.5 |
Current liabilities: | ||
Accounts payable | 686.9 | 730.6 |
Accrued liabilities | 1,730.6 | 1,999.1 |
Insurance reserves | 217.9 | 246 |
Stored value card liability | 1,339.7 | 1,171.2 |
Short-term debt | 25 | 0 |
Current portion of long-term debt | 0 | 399.9 |
Total current liabilities | 4,000.1 | 4,546.8 |
Long-term debt | 3,942.5 | 3,185.3 |
Other long-term liabilities | 673.9 | 689.7 |
Total liabilities | 8,616.5 | 8,421.8 |
Shareholders' equity: | ||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,457.2 shares and 1,460.5 shares, respectively | 1.4 | 1.5 |
Additional paid-in capital | 41.1 | 41.1 |
Retained earnings | 5,768.9 | 5,949.8 |
Accumulated other comprehensive loss | (206.4) | (108.4) |
Total shareholders' equity | 5,605 | 5,884 |
Noncontrolling interests | 6.4 | 6.7 |
Total equity | 5,611.4 | 5,890.7 |
TOTAL LIABILITIES AND EQUITY | $ 14,227.9 | $ 14,312.5 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 02, 2017 | Oct. 02, 2016 |
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 | 1,447,700,000 | 1,460,500,000 |
Common stock, shares outstanding | 1,447,700,000 | 1,460,500,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Apr. 02, 2017 | Mar. 27, 2016 | |
OPERATING ACTIVITIES: | ||
Net earnings including noncontrolling interests | $ 1,404.6 | $ 1,262.6 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 529.8 | 509.3 |
Deferred income taxes, net | 62.8 | 260.2 |
Income earned from equity method investees | (129.4) | (96.5) |
Distributions received from equity method investees | 94.1 | 102.8 |
Gain resulting from sale of equity in joint venture and certain retail operations | 9.6 | 0.6 |
Stock-based compensation | 104.9 | 108.6 |
Excess tax benefit on share-based awards | (52.7) | (89.3) |
Other | (11.4) | 24.5 |
Cash provided by changes in operating assets and liabilities: | ||
Accounts receivable | (45.6) | (39.8) |
Inventories | 45.4 | 15.3 |
Accounts payable | (21.5) | (17.2) |
Stored value card liability | 179.2 | 216.2 |
Other operating assets and liabilities | 211.6 | 70.6 |
Net cash provided by operating activities | 1,939 | 2,185.5 |
INVESTING ACTIVITIES: | ||
Purchases of investments | (485.7) | (579) |
Sales of investments | 470.6 | 247.7 |
Maturities and calls of investments | 33.6 | 4.4 |
Additions to property, plant and equipment | (637.9) | (668.2) |
Proceeds from sale of equity in joint venture | 0 | 30.2 |
Other | 54.1 | 12.1 |
Net cash used by investing activities | (565.3) | (952.8) |
FINANCING ACTIVITIES: | ||
Proceeds from issuance of commercial paper | 25 | 149.1 |
Proceeds from issuance of long-term debt | 750.2 | 499.7 |
Principal payments on long-term debt | 400 | 0 |
Proceeds from issuance of common stock | 97.5 | 79.6 |
Excess tax benefit on share-based awards | 52.7 | 89.3 |
Cash dividends paid | (727.8) | (591.8) |
Repurchase of common stock | (1,046.1) | (1,584.5) |
Minimum tax withholdings on share-based awards | (70.1) | (103.6) |
Other | 0.7 | (0.8) |
Net cash used by financing activities | (1,317.9) | (1,463) |
Effect of exchange rate changes on cash and cash equivalents | (20.7) | (5.4) |
Net increase/(decrease) in cash and cash equivalents | 35.1 | (235.7) |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 2,128.8 | 1,530.1 |
End of period | 2,163.9 | 1,294.4 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 48.9 | 34.4 |
Income taxes, net of refunds | $ 822.6 | $ 458.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 02, 2017 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Financial Statement Preparation The unaudited condensed consolidated financial statements as of April 2, 2017 , and for the quarter and two quarters ended April 2, 2017 and March 27, 2016 , 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 two quarters ended April 2, 2017 and March 27, 2016 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 October 2, 2016 is derived from our audited consolidated financial statements and notes for the fiscal year ended October 2, 2016 (“fiscal 2016 ”) included in Item 8 in the Fiscal 2016 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 two quarters ended April 2, 2017 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending October 1, 2017 ("fiscal 2017 "). Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that simplifies the measurement of goodwill impairment. Under this new guidance, an impairment charge, if triggered, is calculated as the difference between a reporting unit’s carrying value and fair value, but it is limited to the carrying value of goodwill. Current guidance, however, requires an impairment charge to be calculated as the excess of the carrying value of goodwill over its implied fair value. During the second quarter of fiscal 2017, we elected to early-adopt this guidance on a prospective basis, and during the third quarter of fiscal 2017, we will conduct our annual goodwill impairment testing. Among our larger reporting units, the fair value of the Teavana reporting unit was closest to its carrying value per our most recently completed test in third quarter of fiscal 2016. As of April 2, 2017 , goodwill attributed to this unit was $467.5 million . We will continue to assess its recoverability as management evaluates the performance and strategy of the reporting unit. In October 2016, the FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the asset has been sold to an outside party. The guidance will require a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings at the beginning of our first quarter of fiscal 2019 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 June 2016, the 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 at the beginning of our first quarter of fiscal 2018 but permits adoption in an earlier period. With this adoption, excess tax benefits and tax deficiencies related to stock-based compensation will be prospectively reflected as income tax expense in our consolidated statement of earnings instead of additional paid-in capital on our consolidated balance sheet. Additionally, within our consolidated statement of cash flows, this guidance will require excess tax benefits to be presented as an operating activity, rather than a financing activity, in the same manner as other cash flows related to income taxes. We are currently evaluating the timing and impact of adopting this guidance; however, as a result of the presentation requirements associated with the standard, we expect this adoption to have a significant impact on income tax expense and earnings per share, as reported in our consolidated statement of earnings, and consolidated statement of cash flows. 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 standards 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. We expect this adoption will result in a material increase in the assets and liabilities on our consolidated balance sheets but will likely have an insignificant impact on our consolidated statements of earnings. In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires these costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. We retrospectively adopted this guidance in the first quarter of fiscal 2017, which resulted in the reclassification of $17.0 million of debt issuance costs previously presented in prepaid expenses and other current assets and other long-term assets to long-term debt in our consolidated balance sheet as of October 2, 2016. Components of our long-term debt and aggregate debt issuance costs and unamortized premium are disclosed in Note 7 , Debt. 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 interest income and other, net. 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 | 6 Months Ended |
Apr. 02, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 2: Acquisitions and Divestitures Fiscal 2016 During the third quarter of fiscal 2016, we sold our ownership interest in our Germany retail business to AmRest Holdings SE for a total of $47.3 million . This transaction converted these company-operated stores to a fully licensed market. The cumulative pre-tax gains recognized upon satisfying certain related contingent items were insignificant and were included in interest income and other, net on our condensed consolidated statement 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 an insignificant pre-tax gain, which was included in interest income and other, net on our condensed consolidated statements of earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Apr. 02, 2017 | |
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 interest income and other, net, respectively, when the hedged exposure affects net earnings. From time to time, we enter into forward contracts or use foreign currency-denominated debt to hedge the currency exposure of our net investment in certain international operations. The effective portion of these instruments' 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. Foreign currency forward and swap contracts not designated as hedging instruments are used to mitigate the foreign exchange risk of certain other balance sheet items. Gains and losses from these derivatives are largely offset by the financial impact of translating foreign currency denominated payables and receivables; these gains and losses are recorded in interest income and other, net. 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, primarily of dairy products, diesel fuel and other commodities, we enter into swap contracts, futures and collars that are not designated as hedging instruments. Gains and losses from these derivatives are recorded in interest income and other, net to help offset price fluctuations on our beverage, food, packaging and transportation costs, which are included in cost of sales including occupancy costs on our consolidated statements of earnings. Gains and losses on derivative contracts and foreign currency-denominated debt 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 Expected to be Reclassified from AOCI into Earnings within 12 Months Outstanding Contract/Debt Remaining Maturity (Months) Apr 2, Oct 2, Cash Flow Hedges: Interest rates $ 19.0 $ 20.5 $ 3.0 0 Cross-currency swaps (9.0 ) (7.7 ) — 92 Foreign currency - other 11.5 (0.4 ) 9.6 34 Coffee 0.1 (1.6 ) 0.1 9 Net Investment Hedges: Foreign currency 17.4 1.3 — 0 Foreign currency debt (6.1 ) — — 84 Pretax gains and losses on derivative contracts and foreign-denominated long-term debt designated as hedging instruments recognized in other comprehensive income ("OCI") and reclassifications from AOCI to earnings ( in millions ): Quarter Ended Two 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 Apr 2, Mar 27, Apr 2, Mar 27, Apr 2, Mar 27, Apr 2, Mar 27, Cash Flow Hedges: Interest rates $ — $ (11.4 ) $ 1.2 $ 1.3 $ — $ (8.3 ) $ 2.4 $ 2.8 Cross-currency swaps (22.7 ) (39.6 ) (23.4 ) (36.4 ) 52.6 (44.9 ) 54.2 (38.2 ) Foreign currency - other (10.7 ) (18.1 ) 3.6 7.8 26.5 (8.8 ) 8.0 16.3 Coffee (0.1 ) 0.9 (0.3 ) (0.5 ) 0.9 (0.4 ) (1.0 ) (0.6 ) Net Investment Hedges: Foreign currency (15.6 ) — — — 25.5 — — — Foreign currency debt (9.6 ) — — — (9.6 ) — — — Pretax gains and losses on derivative contracts not designated as hedging instruments recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Quarter Ended Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Foreign currency $ (5.0 ) $ (4.0 ) $ 3.4 $ (1.9 ) Coffee — 0.1 — — Dairy (2.4 ) (1.4 ) 2.8 (7.0 ) Diesel fuel and other commodities 0.4 0.5 0.5 (4.2 ) Notional amounts of outstanding derivative contracts (in millions) : Apr 2, 2017 Oct 2, 2016 Cross-currency swaps $ 558 $ 660 Foreign currency - other 1,152 688 Coffee 99 7 Dairy 45 76 Diesel fuel and other commodities 50 46 Fair value of outstanding derivative contracts ( in millions ): Derivative Assets Derivative Liabilities Apr 2, 2017 Oct 2, 2016 Apr 2, 2017 Oct 2, 2016 Designated Derivative Hedging Instruments: Cross-currency swaps $ 7.5 $ — $ 11.9 $ 57.0 Foreign currency - other 21.4 20.8 6.3 24.0 Coffee 0.5 1.8 0.5 — Non-designated Derivative Hedging Instruments: Foreign currency 13.6 6.2 7.6 6.5 Dairy 0.2 1.5 1.4 1.6 Diesel fuel and other commodities 1.0 3.8 0.8 0.5 Additional disclosures related to cash flow 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 | 6 Months Ended |
Apr. 02, 2017 | |
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 $ 2,163.9 $ 2,163.9 $ — $ — Short-term investments: Available-for-sale securities Agency obligations 3.3 — 3.3 — Commercial paper 19.4 — 19.4 — Corporate debt securities 52.7 — 52.7 — Foreign government obligations 5.8 — 5.8 U.S. government treasury securities 63.7 63.7 — — State and local government obligations 3.0 — 3.0 — Certificates of deposit 12.3 — 12.3 — Total available-for-sale securities 160.2 63.7 96.5 — Trading securities 70.8 70.8 — — Total short-term investments 231.0 134.5 96.5 — Prepaid expenses and other current assets: Derivative assets 21.7 0.6 21.1 — Long-term investments: Available-for-sale securities Agency obligations 35.5 — 35.5 — Corporate debt securities 419.6 — 419.6 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 62.4 — 62.4 — U.S. government treasury securities 281.8 281.8 — — State and local government obligations 10.2 — 10.2 — Mortgage and other asset-backed securities 254.7 — 254.7 — Total long-term investments 1,070.1 281.8 782.4 5.9 Other long-term assets: Derivative assets 22.5 — 22.5 — Total assets $ 3,509.2 $ 2,580.8 $ 922.5 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 13.6 $ 1.4 $ 12.2 $ — Other long-term liabilities: Derivative liabilities 14.9 — 14.9 — Total liabilities $ 28.5 $ 1.4 $ 27.1 $ — 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 $ 2,128.8 $ 2,128.8 $ — $ — Short-term investments: Available-for-sale securities Agency obligations 1.3 — 1.3 — Commercial paper 2.6 — 2.6 — Corporate debt securities 34.2 — 34.2 — Foreign government obligations 5.5 — 5.5 — U.S. government treasury securities 15.8 15.8 — — State and local government obligations 0.5 — 0.5 — Certificates of deposit 5.8 — 5.8 — Total available-for-sale securities 65.7 15.8 49.9 — Trading securities 68.7 68.7 — — Total short-term investments 134.4 84.5 49.9 — Prepaid expenses and other current assets: Derivative assets 27.7 3.1 24.6 — Long-term investments: Available-for-sale securities Agency obligations 44.4 — 44.4 — Corporate debt securities 459.3 — 459.3 — Auction rate securities 5.7 — — 5.7 Foreign government obligations 46.7 — 46.7 — U.S. government treasury securities 358.2 358.2 — — State and local government obligations 57.5 — 57.5 — Mortgage and other asset-backed securities 169.9 — 169.9 — Total long-term investments 1,141.7 358.2 777.8 5.7 Other long-term assets: Derivative assets 6.4 — 6.4 — Total assets $ 3,439.0 $ 2,574.6 $ 858.7 $ 5.7 Liabilities: Accrued liabilities: Derivative liabilities $ 18.0 $ 1.7 $ 16.3 $ — Other long-term liabilities: Derivative liabilities 71.6 — 71.6 — Total $ 89.6 $ 1.7 $ 87.9 $ — 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 April 2, 2017 and October 2, 2016 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the condensed 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 two quarters ended April 2, 2017 and March 27, 2016 , 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 | 6 Months Ended |
Apr. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (in millions) Apr 2, 2017 Oct 2, 2016 Mar 27, 2016 Coffee: Unroasted $ 599.2 $ 561.6 $ 585.5 Roasted 272.8 300.4 261.8 Other merchandise held for sale 244.6 308.6 255.0 Packaging and other supplies 207.0 207.9 190.8 Total $ 1,323.6 $ 1,378.5 $ 1,293.1 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 April 2, 2017 , we had committed to purchasing green coffee totaling $441 million under fixed-price contracts and an estimated $676 million under price-to-be-fixed contracts. As of April 2, 2017 , approximately $99 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 | 6 Months Ended |
Apr. 02, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information (in millions) Property, Plant and Equipment, net Apr 2, 2017 Oct 2, 2016 Land $ 46.8 $ 46.6 Buildings 468.2 458.4 Leasehold improvements 6,042.5 5,892.9 Store equipment 1,983.7 1,931.7 Roasting equipment 603.3 605.4 Furniture, fixtures and other 1,431.3 1,366.9 Work in progress 311.5 271.4 Property, plant and equipment, gross 10,887.3 10,573.3 Accumulated depreciation (6,322.8 ) (6,039.5 ) Property, plant and equipment, net $ 4,564.5 $ 4,533.8 Accrued Liabilities Apr 2, 2017 Oct 2, 2016 Accrued compensation and related costs $ 468.4 $ 510.8 Accrued occupancy costs 135.5 137.5 Accrued taxes 201.8 368.4 Accrued dividends payable 361.9 365.1 Accrued capital and other operating expenditures 563.0 617.3 Total accrued liabilities $ 1,730.6 $ 1,999.1 |
Debt
Debt | 6 Months Ended |
Apr. 02, 2017 | |
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. The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock and share repurchases. As of April 2, 2017 , we had $25 million of borrowings outstanding under the program. The estimated fair value of the commercial paper approximates its carrying value. Long-term Debt In March 2017, we issued Japanese yen-denominated long-term debt in an underwritten registered public offering. The 7 -year 0.372% Senior Notes (the "2024 notes") due March 2024 were issued with a face value of ¥ 85 billion , of which ¥ 76.0 billion has been designated to hedge the foreign currency exposure of our net investment in Japan. Interest on the 2024 notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2017 . In December 2016, we repaid the $400 million of 0.875% Senior Notes (the "2016 notes") at maturity. Components of long-term debt including the associated interest rates and related estimated fair values by calendar maturity ( in millions, except interest rates) : Apr 2, 2017 Oct 2, 2016 Stated Interest Rate Effective Interest Rate (1) Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2016 notes $ — $ — $ 400.0 $ 400 0.875 % 0.941 % 2018 notes 350.0 354 350.0 357 2.000 % 2.012 % 2021 notes 500.0 502 500.0 511 2.100 % 2.293 % 2021 notes 250.0 251 250.0 255 2.100 % 1.600 % 2022 notes 500.0 509 500.0 526 2.700 % 2.819 % 2023 notes 750.0 806 750.0 839 3.850 % 2.860 % 2024 notes (2) 761.1 762 — — 0.372 % 0.462 % 2026 notes 500.0 480 500.0 509 2.450 % 2.511 % 2045 notes 350.0 370 350.0 417 4.300 % 4.348 % Total 3,961.1 4,034 3,600.0 3,814 Aggregate debt issuance costs and unamortized premium, net (18.6 ) (14.8 ) Total $ 3,942.5 $ 3,585.2 (1) Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance. (2) Japanese yen-denominated long-term debt. 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 April 2, 2017 , we were in compliance with all applicable covenants. The following table summarizes our long-term debt maturities as of April 2, 2017 by fiscal year ( in millions ): Fiscal Year Total 2018 $ — 2019 350.0 2020 — 2021 750.0 2022 500.0 Thereafter 2,361.1 Total $ 3,961.1 |
Equity
Equity | 6 Months Ended |
Apr. 02, 2017 | |
Equity [Abstract] | |
Equity | Equity Changes in total equity (in millions) : Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Attributable to Starbucks Noncontrolling interests Total Equity Attributable to Starbucks Noncontrolling interest Total Equity Beginning balance of total equity $ 5,884.0 $ 6.7 $ 5,890.7 $ 5,818.0 $ 1.8 $ 5,819.8 Net earnings including noncontrolling interests 1,404.9 (0.3 ) 1,404.6 1,262.6 — 1,262.6 Translation adjustment and other, net of reclassifications and tax (112.3 ) — (112.3 ) 36.6 — 36.6 Unrealized gains/(losses), net of reclassifications and tax 14.3 — 14.3 (26.4 ) — (26.4 ) Other comprehensive income/(loss) (98.0 ) — (98.0 ) 10.2 — 10.2 Stock-based compensation expense 105.8 — 105.8 109.5 — 109.5 Exercise of stock options/vesting of RSUs 64.7 — 64.7 59.7 — 59.7 Sale of common stock 14.2 — 14.2 6.9 — 6.9 Repurchase of common stock (1,046.1 ) — (1,046.1 ) (1,584.5 ) — (1,584.5 ) Cash dividends declared (724.5 ) — (724.5 ) (587.8 ) — (587.8 ) Ending balance of total equity $ 5,605.0 $ 6.4 $ 5,611.4 $ 5,094.6 $ 1.8 $ 5,096.4 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 April 2, 2017 Net gains/(losses) in AOCI, beginning of period $ (7.6 ) $ 31.6 $ 27.2 $ (293.5 ) $ (242.3 ) Net gains/(losses) recognized in OCI before reclassifications 1.4 (25.8 ) (15.9 ) 59.5 19.2 Net (gains)/losses reclassified from AOCI to earnings 0.9 15.8 — — 16.7 Other comprehensive income/(loss) attributable to Starbucks 2.3 (10.0 ) (15.9 ) 59.5 35.9 Net gains/(losses) in AOCI, end of period $ (5.3 ) $ 21.6 $ 11.3 $ (234.0 ) $ (206.4 ) March 27, 2016 Net gains/(losses) in AOCI, beginning of period $ 0.8 $ 23.4 $ 1.3 $ (250.6 ) $ (225.1 ) Net gains/(losses) recognized in OCI before reclassifications 2.4 (50.7 ) — 61.0 12.7 Net (gains)/losses reclassified from AOCI to earnings (0.3 ) 23.5 — — 23.2 Other comprehensive income/(loss) attributable to Starbucks 2.1 (27.2 ) — 61.0 35.9 Net gains/(losses) in AOCI, end of period $ 2.9 $ (3.8 ) $ 1.3 $ (189.6 ) $ (189.2 ) Two Quarters Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total April 2, 2017 Net gains/(losses) in AOCI, beginning of period $ 1.1 $ 10.9 $ 1.3 $ (121.7 ) $ (108.4 ) Net gains/(losses) recognized in OCI before reclassifications (7.9 ) 61.2 10.0 (112.3 ) (49.0 ) Net (gains)/losses reclassified from AOCI to earnings 1.5 (50.5 ) — — (49.0 ) Other comprehensive income/(loss) attributable to Starbucks (6.4 ) 10.7 10.0 (112.3 ) (98.0 ) Net gains/(losses) in AOCI, end of period $ (5.3 ) $ 21.6 $ 11.3 $ (234.0 ) $ (206.4 ) March 27, 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 3.0 (47.6 ) — 36.6 (8.0 ) Net (gains)/losses reclassified from AOCI to earnings — 18.2 — — 18.2 Other comprehensive income/(loss) attributable to Starbucks 3.0 (29.4 ) — 36.6 10.2 Net gains/(losses) in AOCI, end of period $ 2.9 $ (3.8 ) $ 1.3 $ (189.6 ) $ (189.2 ) 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 Apr 2, 2017 Mar 27, 2016 Gains/(losses) on available-for-sale securities $ (1.2 ) $ 0.5 Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 1.2 1.3 Interest expense Cross-currency swaps (23.4 ) (36.4 ) Interest income and other, net Foreign currency hedges 1.2 2.3 Revenues Foreign currency/coffee hedges 2.1 5.0 Cost of sales including occupancy costs (20.1 ) (27.3 ) Total before tax 3.4 4.1 Tax benefit $ (16.7 ) $ (23.2 ) Net of tax Two Quarters Ended AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Apr 2, 2017 Mar 27, 2016 Gains/(losses) on available-for-sale securities $ (2.0 ) $ 0.2 Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 2.4 2.8 Interest expense Cross-currency swaps 54.2 (38.2 ) Interest income and other, net Foreign currency hedges 2.5 5.4 Revenues Foreign currency/coffee hedges 4.5 10.3 Cost of sales including occupancy costs 61.6 (19.5 ) Total before tax (12.6 ) 1.3 Tax (expense)/benefit $ 49.0 $ (18.2 ) Net of tax 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 April 2, 2017 . We repurchased 19.0 million shares of common stock at a total cost of $1.0 billion , a nd 27.5 million shares at a total cost of $1.6 billion for two quarters ended April 2, 2017 and March 27, 2016 , respectively. As of April 2, 2017 , 98.9 million shares remained available for repurchase under current authorizations. During the second quarter of fiscal 2017 , our Board of Directors declared a quarterly cash dividend to shareholders of $0.25 per share to be paid on May 26, 2017 to shareholders of record as of the close of business on May 11, 2017 . |
Employee Stock Plans
Employee Stock Plans | 6 Months Ended |
Apr. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Plans | Employee Stock Plans As of April 2, 2017 , there were 72.5 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 13.6 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 Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Options $ 9.1 $ 7.5 $ 24.0 $ 23.0 Restricted Stock Units (“RSUs”) 40.8 43.8 80.9 85.6 Total stock-based compensation expense $ 49.9 $ 51.3 $ 104.9 $ 108.6 Stock option and RSU transactions from October 2, 2016 through April 2, 2017 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, October 2, 2016 31.3 8.3 Granted 6.8 4.8 Options exercised/RSUs vested (3.5 ) (3.7 ) Forfeited/expired (1.0 ) (0.8 ) Options outstanding/Nonvested RSUs, April 2, 2017 33.6 8.6 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of April 2, 2017 $ 56.2 $ 192.2 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Apr. 02, 2017 | |
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 Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Net earnings attributable to Starbucks $ 652.8 $ 575.1 $ 1,404.9 $ 1,262.6 Weighted average common shares outstanding (for basic calculation) 1,453.2 1,472.1 1,455.3 1,479.0 Dilutive effect of outstanding common stock options and RSUs 11.6 14.5 12.4 16.0 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,464.8 1,486.6 1,467.7 1,495.0 EPS — basic $ 0.45 $ 0.39 $ 0.97 $ 0.85 EPS — diluted $ 0.45 $ 0.39 $ 0.96 $ 0.84 Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and nonvested) and unvested RSUs, calculated using the treasury stock method. The calculation of dilutive shares outstanding excludes out-of-the-money stock options (i.e., such options’ exercise prices were greater than the average market price of our common shares for the period) because their inclusion would have been antidilutive. Out-of-the-money stock options totaled approximately 5.2 million as of April 2, 2017 and March 27, 2016 . |
Segment Reporting
Segment Reporting | 6 Months Ended |
Apr. 02, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our chief executive officer and chief operating officer comprised 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 April 2, 2017 Total net revenues $ 3,720.4 $ 768.9 $ 231.7 $ 461.3 $ 111.7 $ 5,294.0 Depreciation and amortization expenses 155.4 49.3 7.6 0.6 3.5 216.4 Income from equity investees — 44.1 — 40.0 — 84.1 Operating income/(loss) 826.1 175.9 27.7 193.6 (25.5 ) 1,197.8 March 27, 2016 Total net revenues $ 3,455.6 $ 677.9 $ 268.3 $ 461.2 $ 130.2 $ 4,993.2 Depreciation and amortization expenses 151.7 44.0 10.7 0.7 3.4 210.5 Income from equity investees — 32.7 0.3 32.6 — 65.6 Operating income/(loss) 812.0 129.3 27.6 182.0 (19.2 ) 1,131.7 Two Quarters Ended Americas China/ Asia Pacific EMEA Channel Development All Other Segments Segment Total April 2, 2017 Total net revenues $ 7,711.8 $ 1,539.6 $ 493.9 $ 1,014.9 $ 266.8 $ 11,027.0 Depreciation and amortization expenses 307.8 98.0 15.2 1.2 6.3 428.5 Income from equity investees — 86.6 — 82.0 — 168.6 Operating income/(loss) 1,784.6 339.1 71.6 436.4 (15.4 ) 2,616.3 March 27, 2016 Total net revenues $ 7,181.8 $ 1,331.4 $ 581.4 $ 973.3 $ 298.9 $ 10,366.8 Depreciation and amortization expenses 292.5 86.1 22.2 1.4 7.0 409.2 Income from equity investees — 63.9 1.5 64.3 — 129.7 Operating income/(loss) 1,746.5 256.1 75.8 375.2 (13.1 ) 2,440.5 Reconciliation of total segment operating income to consolidated earnings before income taxes (in millions) : Quarter Ended Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Total segment operating income $ 1,197.8 $ 1,131.7 $ 2,616.3 $ 2,440.5 Unallocated corporate operating expenses (262.4 ) (267.5 ) (548.0 ) (518.2 ) Consolidated operating income 935.4 864.2 2,068.3 1,922.3 Interest income and other, net 67.9 14.5 92.0 22.5 Interest expense (22.9 ) (18.3 ) (46.7 ) (34.8 ) Earnings before income taxes $ 980.4 $ 860.4 $ 2,113.6 $ 1,910.0 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 02, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that simplifies the measurement of goodwill impairment. Under this new guidance, an impairment charge, if triggered, is calculated as the difference between a reporting unit’s carrying value and fair value, but it is limited to the carrying value of goodwill. Current guidance, however, requires an impairment charge to be calculated as the excess of the carrying value of goodwill over its implied fair value. During the second quarter of fiscal 2017, we elected to early-adopt this guidance on a prospective basis, and during the third quarter of fiscal 2017, we will conduct our annual goodwill impairment testing. Among our larger reporting units, the fair value of the Teavana reporting unit was closest to its carrying value per our most recently completed test in third quarter of fiscal 2016. As of April 2, 2017 , goodwill attributed to this unit was $467.5 million . We will continue to assess its recoverability as management evaluates the performance and strategy of the reporting unit. In October 2016, the FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the asset has been sold to an outside party. The guidance will require a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings at the beginning of our first quarter of fiscal 2019 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 June 2016, the 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 at the beginning of our first quarter of fiscal 2018 but permits adoption in an earlier period. With this adoption, excess tax benefits and tax deficiencies related to stock-based compensation will be prospectively reflected as income tax expense in our consolidated statement of earnings instead of additional paid-in capital on our consolidated balance sheet. Additionally, within our consolidated statement of cash flows, this guidance will require excess tax benefits to be presented as an operating activity, rather than a financing activity, in the same manner as other cash flows related to income taxes. We are currently evaluating the timing and impact of adopting this guidance; however, as a result of the presentation requirements associated with the standard, we expect this adoption to have a significant impact on income tax expense and earnings per share, as reported in our consolidated statement of earnings, and consolidated statement of cash flows. 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 standards 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. We expect this adoption will result in a material increase in the assets and liabilities on our consolidated balance sheets but will likely have an insignificant impact on our consolidated statements of earnings. In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires these costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. We retrospectively adopted this guidance in the first quarter of fiscal 2017, which resulted in the reclassification of $17.0 million of debt issuance costs previously presented in prepaid expenses and other current assets and other long-term assets to long-term debt in our consolidated balance sheet as of October 2, 2016. Components of our long-term debt and aggregate debt issuance costs and unamortized premium are disclosed in Note 7 , Debt. 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 interest income and other, net. 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. |
Derivative Financial Instrume19
Derivative Financial Instruments (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
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 and foreign currency-denominated debt 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 Expected to be Reclassified from AOCI into Earnings within 12 Months Outstanding Contract/Debt Remaining Maturity (Months) Apr 2, Oct 2, Cash Flow Hedges: Interest rates $ 19.0 $ 20.5 $ 3.0 0 Cross-currency swaps (9.0 ) (7.7 ) — 92 Foreign currency - other 11.5 (0.4 ) 9.6 34 Coffee 0.1 (1.6 ) 0.1 9 Net Investment Hedges: Foreign currency 17.4 1.3 — 0 Foreign currency debt (6.1 ) — — 84 |
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 and foreign-denominated long-term debt designated as hedging instruments recognized in other comprehensive income ("OCI") and reclassifications from AOCI to earnings ( in millions ): Quarter Ended Two 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 Apr 2, Mar 27, Apr 2, Mar 27, Apr 2, Mar 27, Apr 2, Mar 27, Cash Flow Hedges: Interest rates $ — $ (11.4 ) $ 1.2 $ 1.3 $ — $ (8.3 ) $ 2.4 $ 2.8 Cross-currency swaps (22.7 ) (39.6 ) (23.4 ) (36.4 ) 52.6 (44.9 ) 54.2 (38.2 ) Foreign currency - other (10.7 ) (18.1 ) 3.6 7.8 26.5 (8.8 ) 8.0 16.3 Coffee (0.1 ) 0.9 (0.3 ) (0.5 ) 0.9 (0.4 ) (1.0 ) (0.6 ) Net Investment Hedges: Foreign currency (15.6 ) — — — 25.5 — — — Foreign currency debt (9.6 ) — — — (9.6 ) — — — |
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 Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Foreign currency $ (5.0 ) $ (4.0 ) $ 3.4 $ (1.9 ) Coffee — 0.1 — — Dairy (2.4 ) (1.4 ) 2.8 (7.0 ) Diesel fuel and other commodities 0.4 0.5 0.5 (4.2 ) |
Notional Amounts of Outstanding Derivative Contracts | Notional amounts of outstanding derivative contracts (in millions) : Apr 2, 2017 Oct 2, 2016 Cross-currency swaps $ 558 $ 660 Foreign currency - other 1,152 688 Coffee 99 7 Dairy 45 76 Diesel fuel and other commodities 50 46 |
Fair Value of Outstanding Derivative Contracts | Fair value of outstanding derivative contracts ( in millions ): Derivative Assets Derivative Liabilities Apr 2, 2017 Oct 2, 2016 Apr 2, 2017 Oct 2, 2016 Designated Derivative Hedging Instruments: Cross-currency swaps $ 7.5 $ — $ 11.9 $ 57.0 Foreign currency - other 21.4 20.8 6.3 24.0 Coffee 0.5 1.8 0.5 — Non-designated Derivative Hedging Instruments: Foreign currency 13.6 6.2 7.6 6.5 Dairy 0.2 1.5 1.4 1.6 Diesel fuel and other commodities 1.0 3.8 0.8 0.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
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 $ 2,163.9 $ 2,163.9 $ — $ — Short-term investments: Available-for-sale securities Agency obligations 3.3 — 3.3 — Commercial paper 19.4 — 19.4 — Corporate debt securities 52.7 — 52.7 — Foreign government obligations 5.8 — 5.8 U.S. government treasury securities 63.7 63.7 — — State and local government obligations 3.0 — 3.0 — Certificates of deposit 12.3 — 12.3 — Total available-for-sale securities 160.2 63.7 96.5 — Trading securities 70.8 70.8 — — Total short-term investments 231.0 134.5 96.5 — Prepaid expenses and other current assets: Derivative assets 21.7 0.6 21.1 — Long-term investments: Available-for-sale securities Agency obligations 35.5 — 35.5 — Corporate debt securities 419.6 — 419.6 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 62.4 — 62.4 — U.S. government treasury securities 281.8 281.8 — — State and local government obligations 10.2 — 10.2 — Mortgage and other asset-backed securities 254.7 — 254.7 — Total long-term investments 1,070.1 281.8 782.4 5.9 Other long-term assets: Derivative assets 22.5 — 22.5 — Total assets $ 3,509.2 $ 2,580.8 $ 922.5 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 13.6 $ 1.4 $ 12.2 $ — Other long-term liabilities: Derivative liabilities 14.9 — 14.9 — Total liabilities $ 28.5 $ 1.4 $ 27.1 $ — 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 $ 2,128.8 $ 2,128.8 $ — $ — Short-term investments: Available-for-sale securities Agency obligations 1.3 — 1.3 — Commercial paper 2.6 — 2.6 — Corporate debt securities 34.2 — 34.2 — Foreign government obligations 5.5 — 5.5 — U.S. government treasury securities 15.8 15.8 — — State and local government obligations 0.5 — 0.5 — Certificates of deposit 5.8 — 5.8 — Total available-for-sale securities 65.7 15.8 49.9 — Trading securities 68.7 68.7 — — Total short-term investments 134.4 84.5 49.9 — Prepaid expenses and other current assets: Derivative assets 27.7 3.1 24.6 — Long-term investments: Available-for-sale securities Agency obligations 44.4 — 44.4 — Corporate debt securities 459.3 — 459.3 — Auction rate securities 5.7 — — 5.7 Foreign government obligations 46.7 — 46.7 — U.S. government treasury securities 358.2 358.2 — — State and local government obligations 57.5 — 57.5 — Mortgage and other asset-backed securities 169.9 — 169.9 — Total long-term investments 1,141.7 358.2 777.8 5.7 Other long-term assets: Derivative assets 6.4 — 6.4 — Total assets $ 3,439.0 $ 2,574.6 $ 858.7 $ 5.7 Liabilities: Accrued liabilities: Derivative liabilities $ 18.0 $ 1.7 $ 16.3 $ — Other long-term liabilities: Derivative liabilities 71.6 — 71.6 — Total $ 89.6 $ 1.7 $ 87.9 $ — |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Apr 2, 2017 Oct 2, 2016 Mar 27, 2016 Coffee: Unroasted $ 599.2 $ 561.6 $ 585.5 Roasted 272.8 300.4 261.8 Other merchandise held for sale 244.6 308.6 255.0 Packaging and other supplies 207.0 207.9 190.8 Total $ 1,323.6 $ 1,378.5 $ 1,293.1 |
Supplemental Balance Sheet In22
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Property, Plant And Equipment, net | Apr 2, 2017 Oct 2, 2016 Land $ 46.8 $ 46.6 Buildings 468.2 458.4 Leasehold improvements 6,042.5 5,892.9 Store equipment 1,983.7 1,931.7 Roasting equipment 603.3 605.4 Furniture, fixtures and other 1,431.3 1,366.9 Work in progress 311.5 271.4 Property, plant and equipment, gross 10,887.3 10,573.3 Accumulated depreciation (6,322.8 ) (6,039.5 ) Property, plant and equipment, net $ 4,564.5 $ 4,533.8 |
Accrued Liabilities | Apr 2, 2017 Oct 2, 2016 Accrued compensation and related costs $ 468.4 $ 510.8 Accrued occupancy costs 135.5 137.5 Accrued taxes 201.8 368.4 Accrued dividends payable 361.9 365.1 Accrued capital and other operating expenditures 563.0 617.3 Total accrued liabilities $ 1,730.6 $ 1,999.1 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
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) : Apr 2, 2017 Oct 2, 2016 Stated Interest Rate Effective Interest Rate (1) Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2016 notes $ — $ — $ 400.0 $ 400 0.875 % 0.941 % 2018 notes 350.0 354 350.0 357 2.000 % 2.012 % 2021 notes 500.0 502 500.0 511 2.100 % 2.293 % 2021 notes 250.0 251 250.0 255 2.100 % 1.600 % 2022 notes 500.0 509 500.0 526 2.700 % 2.819 % 2023 notes 750.0 806 750.0 839 3.850 % 2.860 % 2024 notes (2) 761.1 762 — — 0.372 % 0.462 % 2026 notes 500.0 480 500.0 509 2.450 % 2.511 % 2045 notes 350.0 370 350.0 417 4.300 % 4.348 % Total 3,961.1 4,034 3,600.0 3,814 Aggregate debt issuance costs and unamortized premium, net (18.6 ) (14.8 ) Total $ 3,942.5 $ 3,585.2 (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 April 2, 2017 by fiscal year ( in millions ): Fiscal Year Total 2018 $ — 2019 350.0 2020 — 2021 750.0 2022 500.0 Thereafter 2,361.1 Total $ 3,961.1 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
Equity [Abstract] | |
Changes in total equity | Changes in total equity (in millions) : Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Attributable to Starbucks Noncontrolling interests Total Equity Attributable to Starbucks Noncontrolling interest Total Equity Beginning balance of total equity $ 5,884.0 $ 6.7 $ 5,890.7 $ 5,818.0 $ 1.8 $ 5,819.8 Net earnings including noncontrolling interests 1,404.9 (0.3 ) 1,404.6 1,262.6 — 1,262.6 Translation adjustment and other, net of reclassifications and tax (112.3 ) — (112.3 ) 36.6 — 36.6 Unrealized gains/(losses), net of reclassifications and tax 14.3 — 14.3 (26.4 ) — (26.4 ) Other comprehensive income/(loss) (98.0 ) — (98.0 ) 10.2 — 10.2 Stock-based compensation expense 105.8 — 105.8 109.5 — 109.5 Exercise of stock options/vesting of RSUs 64.7 — 64.7 59.7 — 59.7 Sale of common stock 14.2 — 14.2 6.9 — 6.9 Repurchase of common stock (1,046.1 ) — (1,046.1 ) (1,584.5 ) — (1,584.5 ) Cash dividends declared (724.5 ) — (724.5 ) (587.8 ) — (587.8 ) Ending balance of total equity $ 5,605.0 $ 6.4 $ 5,611.4 $ 5,094.6 $ 1.8 $ 5,096.4 |
Changes in Accumulated Other Comprehensive Income by component, 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 April 2, 2017 Net gains/(losses) in AOCI, beginning of period $ (7.6 ) $ 31.6 $ 27.2 $ (293.5 ) $ (242.3 ) Net gains/(losses) recognized in OCI before reclassifications 1.4 (25.8 ) (15.9 ) 59.5 19.2 Net (gains)/losses reclassified from AOCI to earnings 0.9 15.8 — — 16.7 Other comprehensive income/(loss) attributable to Starbucks 2.3 (10.0 ) (15.9 ) 59.5 35.9 Net gains/(losses) in AOCI, end of period $ (5.3 ) $ 21.6 $ 11.3 $ (234.0 ) $ (206.4 ) March 27, 2016 Net gains/(losses) in AOCI, beginning of period $ 0.8 $ 23.4 $ 1.3 $ (250.6 ) $ (225.1 ) Net gains/(losses) recognized in OCI before reclassifications 2.4 (50.7 ) — 61.0 12.7 Net (gains)/losses reclassified from AOCI to earnings (0.3 ) 23.5 — — 23.2 Other comprehensive income/(loss) attributable to Starbucks 2.1 (27.2 ) — 61.0 35.9 Net gains/(losses) in AOCI, end of period $ 2.9 $ (3.8 ) $ 1.3 $ (189.6 ) $ (189.2 ) Two Quarters Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total April 2, 2017 Net gains/(losses) in AOCI, beginning of period $ 1.1 $ 10.9 $ 1.3 $ (121.7 ) $ (108.4 ) Net gains/(losses) recognized in OCI before reclassifications (7.9 ) 61.2 10.0 (112.3 ) (49.0 ) Net (gains)/losses reclassified from AOCI to earnings 1.5 (50.5 ) — — (49.0 ) Other comprehensive income/(loss) attributable to Starbucks (6.4 ) 10.7 10.0 (112.3 ) (98.0 ) Net gains/(losses) in AOCI, end of period $ (5.3 ) $ 21.6 $ 11.3 $ (234.0 ) $ (206.4 ) March 27, 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 3.0 (47.6 ) — 36.6 (8.0 ) Net (gains)/losses reclassified from AOCI to earnings — 18.2 — — 18.2 Other comprehensive income/(loss) attributable to Starbucks 3.0 (29.4 ) — 36.6 10.2 Net gains/(losses) in AOCI, end of period $ 2.9 $ (3.8 ) $ 1.3 $ (189.6 ) $ (189.2 ) |
Impact of reclassifications from Accumulated Other Comprehensive Income on the consolidated statements of 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 Apr 2, 2017 Mar 27, 2016 Gains/(losses) on available-for-sale securities $ (1.2 ) $ 0.5 Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 1.2 1.3 Interest expense Cross-currency swaps (23.4 ) (36.4 ) Interest income and other, net Foreign currency hedges 1.2 2.3 Revenues Foreign currency/coffee hedges 2.1 5.0 Cost of sales including occupancy costs (20.1 ) (27.3 ) Total before tax 3.4 4.1 Tax benefit $ (16.7 ) $ (23.2 ) Net of tax Two Quarters Ended AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statements of Earnings Apr 2, 2017 Mar 27, 2016 Gains/(losses) on available-for-sale securities $ (2.0 ) $ 0.2 Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 2.4 2.8 Interest expense Cross-currency swaps 54.2 (38.2 ) Interest income and other, net Foreign currency hedges 2.5 5.4 Revenues Foreign currency/coffee hedges 4.5 10.3 Cost of sales including occupancy costs 61.6 (19.5 ) Total before tax (12.6 ) 1.3 Tax (expense)/benefit $ 49.0 $ (18.2 ) Net of tax |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
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 Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Options $ 9.1 $ 7.5 $ 24.0 $ 23.0 Restricted Stock Units (“RSUs”) 40.8 43.8 80.9 85.6 Total stock-based compensation expense $ 49.9 $ 51.3 $ 104.9 $ 108.6 |
Stock Option and RSU Transactions | Stock option and RSU transactions from October 2, 2016 through April 2, 2017 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, October 2, 2016 31.3 8.3 Granted 6.8 4.8 Options exercised/RSUs vested (3.5 ) (3.7 ) Forfeited/expired (1.0 ) (0.8 ) Options outstanding/Nonvested RSUs, April 2, 2017 33.6 8.6 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of April 2, 2017 $ 56.2 $ 192.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
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 Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Net earnings attributable to Starbucks $ 652.8 $ 575.1 $ 1,404.9 $ 1,262.6 Weighted average common shares outstanding (for basic calculation) 1,453.2 1,472.1 1,455.3 1,479.0 Dilutive effect of outstanding common stock options and RSUs 11.6 14.5 12.4 16.0 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,464.8 1,486.6 1,467.7 1,495.0 EPS — basic $ 0.45 $ 0.39 $ 0.97 $ 0.85 EPS — diluted $ 0.45 $ 0.39 $ 0.96 $ 0.84 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Apr. 02, 2017 | |
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 April 2, 2017 Total net revenues $ 3,720.4 $ 768.9 $ 231.7 $ 461.3 $ 111.7 $ 5,294.0 Depreciation and amortization expenses 155.4 49.3 7.6 0.6 3.5 216.4 Income from equity investees — 44.1 — 40.0 — 84.1 Operating income/(loss) 826.1 175.9 27.7 193.6 (25.5 ) 1,197.8 March 27, 2016 Total net revenues $ 3,455.6 $ 677.9 $ 268.3 $ 461.2 $ 130.2 $ 4,993.2 Depreciation and amortization expenses 151.7 44.0 10.7 0.7 3.4 210.5 Income from equity investees — 32.7 0.3 32.6 — 65.6 Operating income/(loss) 812.0 129.3 27.6 182.0 (19.2 ) 1,131.7 Two Quarters Ended Americas China/ Asia Pacific EMEA Channel Development All Other Segments Segment Total April 2, 2017 Total net revenues $ 7,711.8 $ 1,539.6 $ 493.9 $ 1,014.9 $ 266.8 $ 11,027.0 Depreciation and amortization expenses 307.8 98.0 15.2 1.2 6.3 428.5 Income from equity investees — 86.6 — 82.0 — 168.6 Operating income/(loss) 1,784.6 339.1 71.6 436.4 (15.4 ) 2,616.3 March 27, 2016 Total net revenues $ 7,181.8 $ 1,331.4 $ 581.4 $ 973.3 $ 298.9 $ 10,366.8 Depreciation and amortization expenses 292.5 86.1 22.2 1.4 7.0 409.2 Income from equity investees — 63.9 1.5 64.3 — 129.7 Operating income/(loss) 1,746.5 256.1 75.8 375.2 (13.1 ) 2,440.5 |
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 Two Quarters Ended Apr 2, 2017 Mar 27, 2016 Apr 2, 2017 Mar 27, 2016 Total segment operating income $ 1,197.8 $ 1,131.7 $ 2,616.3 $ 2,440.5 Unallocated corporate operating expenses (262.4 ) (267.5 ) (548.0 ) (518.2 ) Consolidated operating income 935.4 864.2 2,068.3 1,922.3 Interest income and other, net 67.9 14.5 92.0 22.5 Interest expense (22.9 ) (18.3 ) (46.7 ) (34.8 ) Earnings before income taxes $ 980.4 $ 860.4 $ 2,113.6 $ 1,910.0 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | Oct. 02, 2016USD ($) |
Long-term Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Issuance Costs | $ 17 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies Goodwill (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 |
Goodwill [Line Items] | ||
Goodwill | $ 1,635.8 | $ 1,719.6 |
Teavana [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 467.5 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 26, 2016 | Dec. 27, 2015 | Apr. 02, 2017 | |
Germany Retail Operations [Member] | |||
Business Acquisition [Line Items] | |||
Sale of Ownership Interest in Retail Business | $ 47.3 | ||
Gain/(loss) resulting from divestiture | insignificant | ||
Spain JV [Member] | |||
Business Acquisition [Line Items] | |||
Gain/(loss) resulting from divestiture | insignificant | ||
Preexisting ownership percentage in equity method investment | 49.00% | ||
Purchase price of joint venture sold | $ 30.2 |
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 | |
Apr. 02, 2017 | Oct. 02, 2016 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 19 | $ 20.5 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 3 | |
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) | (7.7) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 92 months | |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 11.5 | (0.4) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 9.6 | |
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 | $ 0.1 | (1.6) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0.1 | |
Outstanding Contract Remaining Maturity (Months) | 9 months | |
Net Investment Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 17.4 | 1.3 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 0 months | |
Net Investment Hedging [Member] | ForeignExchangeYenDebt [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (6.1) | $ 0 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 84 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 ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | $ 0 | $ (11,400,000) | $ 0 | $ (8,300,000) |
Gains/(Losses) Reclassified from AOCI to Earnings | 1,200,000 | 1,300,000 | 2,400,000 | 2,800,000 |
Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (22,700,000) | (39,600,000) | 52,600,000 | (44,900,000) |
Gains/(Losses) Reclassified from AOCI to Earnings | (23,400,000) | (36,400,000) | 54,200,000 | (38,200,000) |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (10,700,000) | (18,100,000) | 26,500,000 | (8,800,000) |
Gains/(Losses) Reclassified from AOCI to Earnings | 3,600,000 | 7,800,000 | 8,000,000 | 16,300,000 |
Cash Flow Hedging [Member] | Coffee Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (100,000) | 900,000 | 900,000 | (400,000) |
Gains/(Losses) Reclassified from AOCI to Earnings | (300,000) | (500,000) | (1,000,000) | (600,000) |
Net Investment Hedging [Member] | Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (15,600,000) | 0 | 25,500,000 | 0 |
Gains/(Losses) Reclassified from AOCI to Earnings | 0 | 0 | 0 | 0 |
Net Investment Hedging [Member] | ForeignExchangeYenDebt [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (9,600,000) | 0 | (9,600,000) | 0 |
Gains/(Losses) Reclassified from AOCI to Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
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 | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | $ (5) | $ (4) | $ 3.4 | $ (1.9) |
Coffee Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | 0 | 0.1 | 0 | 0 |
Dairy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | (2.4) | (1.4) | 2.8 | (7) |
Diesel and Other Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | $ 0.4 | $ 0.5 | $ 0.5 | $ (4.2) |
Derivative and Financial Instru
Derivative and Financial Instruments (Notional Amounts of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 |
Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | $ 558 | $ 660 |
Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 1,152 | 688 |
Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 99 | 7 |
Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 45 | 76 |
Diesel and Other Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | $ 50 | $ 46 |
Derivative Financial Instrume35
Derivative Financial Instruments Derivative Financial Instruments (Fair Value of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 |
Designated as Hedging Instrument [Member] | Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | $ 7.5 | $ 0 |
Derivative Liabilities | 11.9 | 57 |
Designated as Hedging Instrument [Member] | Foreign Currency - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 21.4 | 20.8 |
Derivative Liabilities | 6.3 | 24 |
Designated as Hedging Instrument [Member] | Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0.5 | 1.8 |
Derivative Liabilities | 0.5 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Currency - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 13.6 | 6.2 |
Derivative Liabilities | 7.6 | 6.5 |
Not Designated as Hedging Instrument [Member] | Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0.2 | 1.5 |
Derivative Liabilities | 1.4 | 1.6 |
Not Designated as Hedging Instrument [Member] | Diesel and Other Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 1 | 3.8 |
Derivative Liabilities | $ 0.8 | $ 0.5 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 |
Assets: | ||
Total short-term investments | $ 231 | $ 134.4 |
Available-for-sale securities | 1,070.1 | 1,141.7 |
Total Assets | 3,509.2 | 3,439 |
Liabilities: | ||
Total Liabilities | 28.5 | 89.6 |
Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 2,163.9 | 2,128.8 |
Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 160.2 | 65.7 |
Trading securities | 70.8 | 68.7 |
Total short-term investments | 231 | 134.4 |
Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 21.7 | 27.7 |
Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 1,070.1 | 1,141.7 |
Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets | 22.5 | 6.4 |
Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 13.6 | 18 |
Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 14.9 | 71.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Total Assets | 2,580.8 | 2,574.6 |
Liabilities: | ||
Total Liabilities | 1.4 | 1.7 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 2,163.9 | 2,128.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 63.7 | 15.8 |
Trading securities | 70.8 | 68.7 |
Total short-term investments | 134.5 | 84.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 0.6 | 3.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 281.8 | 358.2 |
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 | 1.4 | 1.7 |
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 | 922.5 | 858.7 |
Liabilities: | ||
Total Liabilities | 27.1 | 87.9 |
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 | 96.5 | 49.9 |
Trading securities | 0 | 0 |
Total short-term investments | 96.5 | 49.9 |
Significant Other Observable Inputs (Level 2) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 21.1 | 24.6 |
Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 782.4 | 777.8 |
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets | 22.5 | 6.4 |
Significant Other Observable Inputs (Level 2) [Member] | Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 12.2 | 16.3 |
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 14.9 | 71.6 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Total Assets | 5.9 | 5.7 |
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 | 5.9 | 5.7 |
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 |
Agency Obligations [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 3.3 | 1.3 |
Agency Obligations [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 35.5 | 44.4 |
Agency Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 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 | 3.3 | 1.3 |
Agency Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 35.5 | 44.4 |
Agency Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Agency Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 19.4 | 2.6 |
Commercial Paper [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 19.4 | 2.6 |
Commercial Paper [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 52.7 | 34.2 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 419.6 | 459.3 |
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 | 52.7 | 34.2 |
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 419.6 | 459.3 |
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 |
Foreign Government Obligations [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 5.8 | 5.5 |
Foreign Government Obligations [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 62.4 | 46.7 |
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 | 5.8 | 5.5 |
Foreign Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 62.4 | 46.7 |
Foreign Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 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 | 63.7 | 15.8 |
U.S. Government Treasury Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 281.8 | 358.2 |
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 | 63.7 | 15.8 |
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 | 281.8 | 358.2 |
U.S. Government Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 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 | 0 |
U.S. Government Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
State and Local Government Obligations [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 3 | 0.5 |
State and Local Government Obligations [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 10.2 | 57.5 |
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 | 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 | 0.5 |
State and Local Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 10.2 | 57.5 |
State and Local Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
State and Local Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Certificates of Deposit [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 12.3 | 5.8 |
Certificates of Deposit [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 12.3 | 5.8 |
Certificates of Deposit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Auction Rate Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 5.9 | 5.7 |
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 | 5.9 | 5.7 |
Mortgage and Other Asset-backed Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 254.7 | 169.9 |
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] | Long-term Investments [Member] | ||
Assets: | ||
Available-for-sale securities | 254.7 | 169.9 |
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) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 02, 2017 | Oct. 02, 2016 | |
Coffee Contracts [Member] | ||
Inventory [Line Items] | ||
Notional amounts of outstanding derivative contracts | $ 99 | $ 7 |
Coffee Contracts [Member] | Price-to-be-fixed Contract [Member] | ||
Inventory [Line Items] | ||
Notional amounts of outstanding derivative contracts | 99 | |
Price-to-be-fixed Contract [Member] | ||
Inventory [Line Items] | ||
Amount of coffee committed to be purchased | 676 | |
Fixed Price Contract [Member] | ||
Inventory [Line Items] | ||
Amount of coffee committed to be purchased | $ 441 |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 | Mar. 27, 2016 |
Inventory Disclosure [Abstract] | |||
Unroasted coffee | $ 599.2 | $ 561.6 | $ 585.5 |
Roasted coffee | 272.8 | 300.4 | 261.8 |
Other merchandise held for sale | 244.6 | 308.6 | 255 |
Packaging and other supplies | 207 | 207.9 | 190.8 |
Total | $ 1,323.6 | $ 1,378.5 | $ 1,293.1 |
Supplemental Balance Sheet In39
Supplemental Balance Sheet Information (Property, Plant And Equipment, net) (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,887.3 | $ 10,573.3 |
Accumulated depreciation | (6,322.8) | (6,039.5) |
Property, plant and equipment, net | 4,564.5 | 4,533.8 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46.8 | 46.6 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 468.2 | 458.4 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,042.5 | 5,892.9 |
Store Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,983.7 | 1,931.7 |
Roasting Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 603.3 | 605.4 |
Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,431.3 | 1,366.9 |
Work in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 311.5 | $ 271.4 |
Supplemental Balance Sheet In40
Supplemental Balance Sheet Information (Accrued Liabilities) (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Oct. 02, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and related costs | $ 468.4 | $ 510.8 |
Accrued occupancy costs | 135.5 | 137.5 |
Accrued taxes | 201.8 | 368.4 |
Accrued dividends payable | 361.9 | 365.1 |
Accrued capital and other operating expenditures | 563 | 617.3 |
Total accrued liabilities | $ 1,730.6 | $ 1,999.1 |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) $ in Millions, ¥ in Billions | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2017JPY (¥) | Apr. 02, 2017JPY (¥) | Jan. 01, 2017USD ($) | Apr. 02, 2017USD ($) | Oct. 02, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Debt Redemption, Amount | $ 400 | ||||
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 April 2, 2017, we were in compliance with all applicable covenants. | ||||
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Term | 7 years | ||||
Stated Interest Rate | 0.372% | 0.372% | 0.372% | ||
Debt Instrument, Face Amount | ¥ 85 | $ 761.1 | $ 0 | ||
Point Eight Seven Five Percentage Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate | 0.875% | 0.875% | |||
Debt Instrument, Face Amount | $ 0 | $ 400 | |||
Designated as Hedging Instrument [Member] | ForeignExchangeYenDebt [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Notional Amount | ¥ | ¥ 76 |
Debt (Components of Long-Term D
Debt (Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values) (Details) $ in Millions, ¥ in Billions | Apr. 02, 2017USD ($) | Mar. 31, 2017JPY (¥) | Oct. 02, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Total, Face Value | $ 3,961.1 | $ 3,600 | ||
Total, Estimated Fair Value | 4,034 | 3,814 | ||
Aggregate debt issuance costs and unamortized premium | (18.6) | (14.8) | ||
Total, Carrying Value, net of aggregate unamortized discount | 3,942.5 | 3,585.2 | ||
Point Eight Seven Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 0 | 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 Amount | $ 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 Amount | $ 500 | 500 | ||
Debt Instrument, Face Value from Reopening of Previous Issuance | $ 250 | 250 | ||
Stated Interest Rate | 2.10% | |||
Effective Interest Rate | [1] | 2.293% | ||
Effective Interest Rate for Reopening of Previous Issuance | [1] | 1.60% | ||
Two Point Seven Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 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 Amount | $ 750 | 750 | ||
Stated Interest Rate | 3.85% | |||
Effective Interest Rate | [1] | 2.86% | ||
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 761.1 | ¥ 85 | 0 | |
Stated Interest Rate | 0.372% | 0.372% | ||
Effective Interest Rate | [1] | 0.462% | ||
Two Point Four Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | 500 | ||
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 Amount | $ 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 | $ 0 | 400 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Zero Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 354 | 357 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 502 | 511 | ||
Estimated Fair Value from Reopening of Previous Issuance | 251 | 255 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Seven Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 509 | 526 | ||
Fair Value, Inputs, Level 2 [Member] | Three Point Eight Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 806 | 839 | ||
Fair Value, Inputs, Level 2 [Member] | PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 762 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Four Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 480 | 509 | ||
Fair Value, Inputs, Level 2 [Member] | Four Point Three Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | $ 370 | $ 417 | ||
[1] | Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.(2) Japanese yen-denominated long-term debt |
Debt Debt (Summary of long-term
Debt Debt (Summary of long-term debt maturities) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Apr. 02, 2017 | Oct. 02, 2016 | |
Short-term Debt [Line Items] | ||
2,018 | $ 0 | |
2,019 | 350 | |
2,020 | 0 | |
2,021 | 750 | |
2,022 | 500 | |
Thereafter | 2,361.1 | |
Total | 3,961.1 | $ 3,600 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Maximum allowable amount under Commercial Paper Program | 1,000 | |
Outstanding commercial paper | $ 25 | |
Maximum [Member] | Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Maximum allowable maturity period of credit under Commercial Paper Program | 397 days |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Apr. 02, 2017 | Mar. 27, 2016 | Oct. 02, 2016 | |
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 | 19,000,000 | 27,500,000 | ||
Total cost of common stock repurchased | $ 1,046.1 | $ 1,584.5 | ||
Shares available for repurchase | 98,900,000 | 98,900,000 | ||
Cash dividend declared to shareholders | $ 0.25 | $ 0.25 | ||
Dividends payable, payment date | May 26, 2017 | |||
Dividends payable, record date | May 11, 2017 |
Equity (Changes In Total Equity
Equity (Changes In Total Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Beginning balance of total equity | $ 5,890.7 | $ 5,819.8 | ||
Net earnings including noncontrolling interests | $ 652.8 | $ 575 | 1,404.6 | 1,262.6 |
Translation adjustment and other, net of reclassifications and tax | (112.3) | 36.6 | ||
Unrealized gains/(losses), net of reclassifications and tax | 14.3 | (26.4) | ||
Other comprehensive income/(loss) | 35.9 | 35.9 | (98) | 10.2 |
Stock-based compensation expense | 105.8 | 109.5 | ||
Exercise of stock options/vesting of RSUs | 64.7 | 59.7 | ||
Sale of common stock | 14.2 | 6.9 | ||
Repurchase of common stock | (1,046.1) | (1,584.5) | ||
Cash dividends declared | (724.5) | (587.8) | ||
Ending balance of total equity | 5,611.4 | 5,096.4 | 5,611.4 | 5,096.4 |
Parent [Member] | ||||
Beginning balance of total equity | 5,884 | 5,818 | ||
Net earnings including noncontrolling interests | 1,404.9 | 1,262.6 | ||
Translation adjustment and other, net of reclassifications and tax | (112.3) | 36.6 | ||
Unrealized gains/(losses), net of reclassifications and tax | 14.3 | (26.4) | ||
Other comprehensive income/(loss) | 35.9 | 35.9 | (98) | 10.2 |
Stock-based compensation expense | 105.8 | 109.5 | ||
Exercise of stock options/vesting of RSUs | 64.7 | 59.7 | ||
Sale of common stock | 14.2 | 6.9 | ||
Repurchase of common stock | (1,046.1) | (1,584.5) | ||
Cash dividends declared | (724.5) | (587.8) | ||
Ending balance of total equity | 5,605 | 5,094.6 | 5,605 | 5,094.6 |
Noncontrolling Interest [Member] | ||||
Beginning balance of total equity | 6.7 | 1.8 | ||
Net earnings including noncontrolling interests | (0.3) | 0 | ||
Translation adjustment and other, net of reclassifications and tax | 0 | 0 | ||
Unrealized gains/(losses), net of reclassifications and tax | 0 | 0 | ||
Other comprehensive income/(loss) | 0 | 0 | ||
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 | ||
Ending balance of total equity | $ 6.4 | $ 1.8 | $ 6.4 | $ 1.8 |
Equity (Components Of Accumulat
Equity (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI, beginning of period | $ (108.4) | |||
Other comprehensive income/(loss) | $ 35.9 | $ 35.9 | (98) | $ 10.2 |
Net gains/(losses) in AOCI, end of period | (206.4) | (206.4) | ||
Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI, beginning of period | (242.3) | (225.1) | (108.4) | (199.4) |
Net gains/(losses) recognized in OCI before reclassifications | 19.2 | 12.7 | (49) | (8) |
Net (gains)/losses reclassified from AOCI to earnings | 16.7 | 23.2 | (49) | 18.2 |
Other comprehensive income/(loss) | 35.9 | 35.9 | (98) | 10.2 |
Net gains/(losses) in AOCI, end of period | (206.4) | (189.2) | (206.4) | (189.2) |
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI, beginning of period | (7.6) | 0.8 | 1.1 | (0.1) |
Net gains/(losses) recognized in OCI before reclassifications | 1.4 | 2.4 | (7.9) | 3 |
Net (gains)/losses reclassified from AOCI to earnings | 0.9 | (0.3) | 1.5 | 0 |
Other comprehensive income/(loss) | 2.3 | 2.1 | (6.4) | 3 |
Net gains/(losses) in AOCI, end of period | (5.3) | 2.9 | (5.3) | 2.9 |
Cash Flow Hedging [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI, beginning of period | 31.6 | 23.4 | 10.9 | 25.6 |
Net gains/(losses) recognized in OCI before reclassifications | (25.8) | (50.7) | 61.2 | (47.6) |
Net (gains)/losses reclassified from AOCI to earnings | 15.8 | 23.5 | (50.5) | 18.2 |
Other comprehensive income/(loss) | (10) | (27.2) | 10.7 | (29.4) |
Net gains/(losses) in AOCI, end of period | 21.6 | (3.8) | 21.6 | (3.8) |
Net Investment Hedging [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI, beginning of period | 27.2 | 1.3 | 1.3 | 1.3 |
Net gains/(losses) recognized in OCI before reclassifications | (15.9) | 0 | 10 | 0 |
Net (gains)/losses reclassified from AOCI to earnings | 0 | 0 | 0 | 0 |
Other comprehensive income/(loss) | (15.9) | 0 | 10 | 0 |
Net gains/(losses) in AOCI, end of period | 11.3 | 1.3 | 11.3 | 1.3 |
Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gains/(losses) in AOCI, beginning of period | (293.5) | (250.6) | (121.7) | (226.2) |
Net gains/(losses) recognized in OCI before reclassifications | 59.5 | 61 | (112.3) | 36.6 |
Net (gains)/losses reclassified from AOCI to earnings | 0 | 0 | 0 | 0 |
Other comprehensive income/(loss) | 59.5 | 61 | (112.3) | 36.6 |
Net gains/(losses) in AOCI, end of period | $ (234) | $ (189.6) | $ (234) | $ (189.6) |
Equity (Impact of Reclassificat
Equity (Impact of Reclassifications from Accumulated Other Comprehensive Income on Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Interest income and other, net | $ 67.9 | $ 14.5 | $ 92 | $ 22.5 |
Amounts Reclassified from AOCI, Interest expense | (22.9) | (18.3) | (46.7) | (34.8) |
Amounts Reclassified from AOCI, Revenues | 5,294 | 4,993.2 | 11,027 | 10,366.8 |
Amounts Reclassified from AOCI, Cost of sales including occupancy costs | (2,141.2) | (2,010.3) | (4,436.2) | (4,196.5) |
Amounts Reclassified from AOCI, Tax (expense)/benefit | (327.6) | (285.4) | (709) | (647.4) |
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 | (20.1) | (27.3) | 61.6 | (19.5) |
Amounts Reclassified from AOCI, Tax (expense)/benefit | 3.4 | 4.1 | (12.6) | 1.3 |
Amounts Reclassified from AOCI, Net of tax | (16.7) | (23.2) | 49 | (18.2) |
Available-for-sale Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Net of tax | 0.9 | (0.3) | 1.5 | 0 |
Available-for-sale Securities [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 | (1.2) | 0.5 | (2) | 0.2 |
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 | 1.3 | 2.4 | 2.8 |
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 | (23.4) | (36.4) | 54.2 | (38.2) |
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 | 1.2 | 2.3 | 2.5 | 5.4 |
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 | $ 2.1 | $ 5 | $ 4.5 | $ 10.3 |
Employee Stock Plans (Narrative
Employee Stock Plans (Narrative) (Details) shares in Millions | Apr. 02, 2017shares |
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 | 72.5 |
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 | 13.6 |
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 | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 49.9 | $ 51.3 | $ 104.9 | $ 108.6 |
Stock Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9.1 | 7.5 | 24 | 23 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 40.8 | $ 43.8 | $ 80.9 | $ 85.6 |
Employee Stock Plans (Stock Opt
Employee Stock Plans (Stock Option and RSU Transactions) (Details) shares in Millions, $ in Millions | 6 Months Ended |
Apr. 02, 2017USD ($)shares | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, October 2, 2016 | 31.3 |
Granted, Stock Options | 6.8 |
Options exercised, Stock Options | (3.5) |
Forfeited/expired, Stock Options | (1) |
Options outstanding, April 2, 2017 | 33.6 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, Stock Options | $ | $ 56.2 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested RSUs, October 2, 2016 | 8.3 |
Granted, RSUs | 4.8 |
RSUs vested, RSUs | (3.7) |
Forfeited/expired, RSUs | (0.8) |
Nonvested RSUs, April 2, 2017 | 8.6 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, RSUs | $ | $ 192.2 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | 6 Months Ended |
Apr. 02, 2017shares | |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Out-of-the-money stock options | 5.2 |
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 | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Starbucks | $ 652.8 | $ 575.1 | $ 1,404.9 | $ 1,262.6 |
Weighted average common shares outstanding (for basic calculation) | 1,453.2 | 1,472.1 | 1,455.3 | 1,479 |
Dilutive effect of outstanding common stock options and RSUs | 11.6 | 14.5 | 12.4 | 16 |
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,464.8 | 1,486.6 | 1,467.7 | 1,495 |
EPS - basic | $ 0.45 | $ 0.39 | $ 0.97 | $ 0.85 |
EPS - diluted | $ 0.45 | $ 0.39 | $ 0.96 | $ 0.84 |
Segment Reporting (Financial In
Segment Reporting (Financial Information For Reportable Operating Segments And All Other Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 5,294 | $ 4,993.2 | $ 11,027 | $ 10,366.8 |
Depreciation and amortization expenses | 253.6 | 247.8 | 503.3 | 483.3 |
Income from equity investees | 84.1 | 65.6 | 168.6 | 129.7 |
Operating income/(loss) | 935.4 | 864.2 | 2,068.3 | 1,922.3 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 5,294 | 4,993.2 | 11,027 | 10,366.8 |
Depreciation and amortization expenses | 216.4 | 210.5 | 428.5 | 409.2 |
Income from equity investees | 84.1 | 65.6 | 168.6 | 129.7 |
Operating income/(loss) | 1,197.8 | 1,131.7 | 2,616.3 | 2,440.5 |
Operating Segments [Member] | Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 3,720.4 | 3,455.6 | 7,711.8 | 7,181.8 |
Depreciation and amortization expenses | 155.4 | 151.7 | 307.8 | 292.5 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | 826.1 | 812 | 1,784.6 | 1,746.5 |
Operating Segments [Member] | China/Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 768.9 | 677.9 | 1,539.6 | 1,331.4 |
Depreciation and amortization expenses | 49.3 | 44 | 98 | 86.1 |
Income from equity investees | 44.1 | 32.7 | 86.6 | 63.9 |
Operating income/(loss) | 175.9 | 129.3 | 339.1 | 256.1 |
Operating Segments [Member] | EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 231.7 | 268.3 | 493.9 | 581.4 |
Depreciation and amortization expenses | 7.6 | 10.7 | 15.2 | 22.2 |
Income from equity investees | 0 | 0.3 | 0 | 1.5 |
Operating income/(loss) | 27.7 | 27.6 | 71.6 | 75.8 |
Operating Segments [Member] | Channel Development [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 461.3 | 461.2 | 1,014.9 | 973.3 |
Depreciation and amortization expenses | 0.6 | 0.7 | 1.2 | 1.4 |
Income from equity investees | 40 | 32.6 | 82 | 64.3 |
Operating income/(loss) | 193.6 | 182 | 436.4 | 375.2 |
Operating Segments [Member] | All Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 111.7 | 130.2 | 266.8 | 298.9 |
Depreciation and amortization expenses | 3.5 | 3.4 | 6.3 | 7 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | $ (25.5) | $ (19.2) | $ (15.4) | $ (13.1) |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation Of Total Segment Operating Income To Consolidated Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2017 | Mar. 27, 2016 | Apr. 02, 2017 | Mar. 27, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income/(loss) | $ 935.4 | $ 864.2 | $ 2,068.3 | $ 1,922.3 |
Interest income and other, net | 67.9 | 14.5 | 92 | 22.5 |
Interest expense | (22.9) | (18.3) | (46.7) | (34.8) |
Earnings before income taxes | 980.4 | 860.4 | 2,113.6 | 1,910 |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income/(loss) | 1,197.8 | 1,131.7 | 2,616.3 | 2,440.5 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income/(loss) | $ (262.4) | $ (267.5) | $ (548) | $ (518.2) |