Document And Entity Information
Document And Entity Information - shares shares in Millions | 9 Months Ended | |
Jul. 01, 2018 | Jul. 25, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SBUX | |
Entity Registrant Name | STARBUCKS CORP | |
Entity Central Index Key | 829,224 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,349.1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Revenues | $ 6,310.3 | $ 5,661.5 | $ 18,415.9 | $ 16,688.5 |
Cost of sales including occupancy costs | 2,554.9 | 2,249.1 | 7,573.7 | 6,685.3 |
Store operating expenses | 1,825 | 1,628.9 | 5,351.6 | 4,853.5 |
Other operating expenses | 148 | 142.5 | 424 | 422.7 |
Depreciation and amortization expenses | 330 | 252.6 | 920.4 | 756 |
General and administrative expenses | 468.7 | 325 | 1,253.6 | 1,008.2 |
Restructuring Charges | 16.9 | 120.2 | 179.2 | 120.2 |
Total operating expenses | 5,343.5 | 4,718.3 | 15,702.5 | 13,845.9 |
Income from equity investees | 71.4 | 101 | 213.5 | 269.5 |
Operating income | 1,038.2 | 1,044.2 | 2,926.9 | 3,112.1 |
Gain resulting from acquisition of joint venture | 2.5 | 0 | 1,376.4 | 0 |
Gain (Loss) on Disposition of Business | 0 | 0 | 496.3 | 9.6 |
Interest income and other, net | 31.5 | 31.7 | 155.2 | 114.1 |
Interest expense | (45.4) | (23.5) | (106.4) | (70.2) |
Earnings before income taxes | 1,026.8 | 1,052.4 | 4,848.4 | 3,165.6 |
Income Tax Expense (Benefit) | 174.8 | 361.1 | 1,086.5 | 1,070.1 |
Net earnings including noncontrolling interests | 852 | 691.3 | 3,761.9 | 2,095.5 |
Net earnings/(loss) attributable to noncontrolling interests | (0.5) | (0.3) | (0.9) | (0.6) |
Net earnings attributable to Starbucks | $ 852.5 | $ 691.6 | $ 3,762.8 | $ 2,096.1 |
Earnings per share - basic | $ 0.62 | $ 0.48 | $ 2.69 | $ 1.44 |
Earnings per share - diluted | $ 0.61 | $ 0.47 | $ 2.67 | $ 1.43 |
Weighted average shares outstanding: | ||||
Basic | 1,377.1 | 1,447.7 | 1,397.7 | 1,452.8 |
Diluted | 1,388.5 | 1,459.4 | 1,409.9 | 1,464.9 |
Cash dividends declared per share | $ 0.36 | $ 0.25 | $ 0.96 | $ 0.75 |
Company-operated stores [Member] | ||||
Revenues | $ 5,060.4 | $ 4,509 | $ 14,630.3 | $ 13,173.7 |
Licensed stores [Member] | ||||
Revenues | 660.6 | 588.3 | 1,968.6 | 1,737.4 |
CPG, foodservice and other [Member] | ||||
Revenues | $ 589.3 | $ 564.2 | $ 1,817 | $ 1,777.4 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Net earnings including noncontrolling interests | $ 852 | $ 691.3 | $ 3,761.9 | $ 2,095.5 |
Other comprehensive loss, net of tax: | ||||
Other comprehensive income/(loss) | (235.6) | 21.3 | (47.1) | (76.7) |
Comprehensive income including noncontrolling interests | 616.4 | 712.6 | 3,714.8 | 2,018.8 |
Comprehensive income/(loss) attributable to noncontrolling interests | (0.5) | (0.3) | (0.9) | (0.6) |
Comprehensive income attributable to Starbucks | 616.9 | 712.9 | 3,715.7 | 2,019.4 |
Available-for-sale Securities [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized holding gains/(losses) on available-for-sale securities, before tax | (0.5) | 1.6 | (6.5) | (9.9) |
Unrealized holding gains/(losses) on available-for-sale securities, tax (expense)/benefit | 0.1 | (0.6) | 1.8 | 3 |
Cash Flow Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | 46 | (15.2) | 0.6 | 64.8 |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | (10.4) | 2.5 | (1.2) | (16.3) |
Net Investment Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | 32.4 | 2.7 | (11.8) | 18.6 |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | (8.3) | (1) | 2.8 | (6.9) |
Translation Adjustment [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Translation adjustment and other, before tax | (281.9) | 38 | (70.3) | (75.2) |
Translation adjustment and other, tax (expense)/benefit | 1.3 | (1.8) | 3.5 | (0.9) |
Other comprehensive income/(loss) | (280.6) | 36.2 | (49.9) | (76.1) |
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 | (17.5) | (6.4) | 38 | (67.9) |
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, tax expense/(benefit) | $ 3.2 | $ 1.5 | $ (4) | $ 14 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,892.1 | $ 2,462.3 |
Short-term investments | 84.5 | 228.6 |
Accounts receivable, net | 854.8 | 870.4 |
Inventories | 1,387.4 | 1,364 |
Prepaid expenses and other current assets | 1,364.6 | 358.1 |
Total current assets | 5,583.4 | 5,283.4 |
Long-term investments | 261.4 | 542.3 |
Equity and cost investments | 323.4 | 481.6 |
Property, plant and equipment, net | 5,689.6 | 4,919.5 |
Deferred income taxes, net | 149.1 | 795.4 |
Other long-term assets | 404.7 | 362.8 |
Other intangible assets | 1,122.9 | 441.4 |
Goodwill | 3,647.6 | 1,539.2 |
TOTAL ASSETS | 17,182.1 | 14,365.6 |
Current liabilities: | ||
Accounts payable | 921.1 | 782.5 |
Accrued liabilities | 2,320.7 | 1,934.5 |
Insurance reserves | 215.4 | 215.2 |
Stored value card liability | 1,444.6 | 1,288.5 |
Short-term Debt | 300 | 0 |
Current portion of long-term debt | 349.8 | 0 |
Total current liabilities | 5,551.6 | 4,220.7 |
Long-term debt | 6,149.1 | 3,932.6 |
Deferred Tax and Other Liabilities, Noncurrent | 1,484.7 | 755.3 |
Total liabilities | 13,185.4 | 8,908.6 |
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 | 1.4 |
Additional paid-in capital | 41.1 | 41.1 |
Retained earnings | 4,150.9 | 5,563.2 |
Accumulated other comprehensive loss | (202.7) | (155.6) |
Total shareholders' equity | 3,990.7 | 5,450.1 |
Noncontrolling interests | 6 | 6.9 |
Total equity | 3,996.7 | 5,457 |
TOTAL LIABILITIES AND EQUITY | $ 17,182.1 | $ 14,365.6 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 01, 2018 | Oct. 01, 2017 |
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 | 1,366,300,000 | 1,431,600,000 |
Common stock, shares outstanding | 1,366,300,000 | 1,431,600,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
OPERATING ACTIVITIES: | ||
Net earnings including noncontrolling interests | $ 3,761.9 | $ 2,095.5 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 961.5 | 796.4 |
Deferred income taxes, net | 763.7 | 75.1 |
Income earned from equity method investees | (167.2) | (210.1) |
Distributions received from equity method investees | 171.7 | 133.2 |
Gain resulting from acquisition of joint venture | 1,376.4 | 0 |
Gain resulting from sale of equity in joint venture and certain retail operations | (496.3) | (9.6) |
Stock-based compensation | 185 | 148.7 |
Impairment | 28.5 | 87.2 |
Other | 26.7 | 28.2 |
Cash provided by changes in operating assets and liabilities: | ||
Accounts receivable | (14.9) | (40.1) |
Inventories | (21.5) | 19.1 |
Accounts payable | 72.4 | (18.3) |
Stored value card liability | 137.7 | 178.3 |
Other operating assets and liabilities | 528.4 | 124.6 |
Net cash provided by operating activities | 3,504.4 | 3,159 |
INVESTING ACTIVITIES: | ||
Purchases of investments | (69.5) | (592.5) |
Sales of Investments | 441.2 | 831.7 |
Maturities and calls of investments | 40.6 | 61.7 |
Additions to property, plant and equipment | (1,407.8) | (1,025.3) |
Proceeds from sale of equity in joint venture | 608.2 | 0 |
Other | 1.9 | 54.9 |
Net cash used by investing activities | (1,696.7) | (669.5) |
Payments to Acquire Businesses, Net of Cash Acquired | (1,311.3) | 0 |
FINANCING ACTIVITIES: | ||
Proceeds from Issuance of Commercial Paper | 300 | 0 |
Proceeds from issuance of long-term debt | 2,596.5 | 750.2 |
Principal payments on long-term debt | 0 | 400 |
Proceeds from issuance of common stock | 131.9 | 131.5 |
Cash dividends paid | (1,260.2) | (1,089.8) |
Repurchase of common stock | (4,061.9) | (1,214.1) |
Minimum tax withholdings on share-based awards | (60.4) | (71.5) |
Other | (13.6) | 1.5 |
Net cash used by financing activities | (2,367.7) | (1,892.2) |
Effect of exchange rate changes on cash and cash equivalents | (10.2) | (9.9) |
Net increase/(decrease) in cash and cash equivalents | (570.2) | 587.4 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 2,462.3 | 2,128.8 |
End of period | 1,892.1 | 2,716.2 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 101.4 | 87.3 |
Income taxes, net of refunds | $ 899.7 | $ 1,084.6 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 01, 2018 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Financial Statement Preparation The unaudited condensed consolidated financial statements as of July 1, 2018 , and for the quarter and three quarters ended July 1, 2018 and July 2, 2017 , have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial information for the quarter and three quarters ended July 1, 2018 and July 2, 2017 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 1, 2017 is derived from our audited consolidated financial statements and notes for the fiscal year ended October 1, 2017 (“fiscal 2017 ”) included in Item 8 in the Fiscal 2017 Annual Report on Form 10-K (the “10-K”). The information included in this 10-Q should be read in conjunction with the footnotes and management’s discussion and analysis of the consolidated financial statements in the 10-K. The results of operations for the quarter and three quarters ended July 1, 2018 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 30, 2018 (“fiscal 2018 ”). Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued guidance on the reclassification of certain tax effects from accumulated other comprehensive income (“AOCI”). The guidance permits entities to reclassify the stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from AOCI to retained earnings. The guidance will be effective at the beginning of our first quarter of fiscal 2020 but permits adoption in an earlier period. The guidance may be applied in the period of adoption or retrospectively to each period in which the effect of the change related to the Tax Act was recognized. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. In August 2017, the FASB amended its guidance on the accounting of hedging relationships. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness, expands permissible cash flow hedges on contractually specified components, and simplifies hedge documentation and effectiveness assessment. The guidance will be effective at the beginning of our first quarter of fiscal 2020 and will require a modified retrospective approach on existing cash flow and net investment hedges. The presentation and disclosure requirements will be applied prospectively. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. 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. 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. This guidance requires that excess tax benefits and tax deficiencies related to stock-based compensation 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 requires 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 adopted this guidance in the first quarter of fiscal 2018. The primary impact of the adoption was the recognition of excess tax benefits that reduced income tax expenses by $6.1 million and $50.5 million for the quarter and three quarters ended July 1, 2018 , respectively, instead of additional paid-in capital. As a result, net income increased $6.1 million and $50.5 million for the quarter and three quarters ended July 1, 2018 , respectively, and basic and diluted earnings per share had no impact and increased $0.04 for the quarter and three quarters ended July 1, 2018 , respectively. Excess tax benefits of $69.4 million , for the three quarters ended July 2, 2017 , previously reported in financing activities have been reclassified to operating activities in the consolidated statements 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. We will adopt and implement the provisions of this guidance and the new revenue recognition standard issued by the FASB, as discussed below, in the first quarter of fiscal 2019. 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. In July 2018, the FASB issued an alternative method that permits application of the new guidance at the beginning of the year of adoption. This is in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. The guidance will be effective for us at the beginning of our first quarter of fiscal 2020, with optional practical expedients. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the method of adoption. 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 preparation for the adoption of the guidance, we are in the process of implementing controls and key system changes to enable the preparation of financial information. 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 new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (“modified retrospective method”). We are currently evaluating the overall impact this guidance will have on our consolidated financial statements. Based on our continued assessment, which may identify other accounting impacts, we have 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 will adopt this guidance in the first quarter of fiscal 2019 utilizing the modified retrospective method. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Jul. 01, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Fiscal 2018 On March 23, 2018, we sold our company-operated retail store assets and operations in Brazil to SouthRock converting these operations to a fully licensed market, for a total of $48.2 million . This transaction resulted in a pre-tax loss of $8.5 million , which was included in net gain from divestiture of certain operations on our consolidated statements of earnings. On December 31, 2017, we acquired the remaining 50% interest of our East China joint venture (“East China”) from President Chain Store (Hong Kong) Holding Ltd. and Kai Yu (BVI) collectively, “Uni-President Group” or “UPG”, for approximately $1.4 billion . Approximately $90.5 million of pre-existing liabilities owed by East China to Starbucks were effectively settled upon the acquisition. Acquiring the remaining interest of East China, which operates over 1,400 stores in the Shanghai, Jiangsu and Zhejiang Provinces, builds on the Company's ongoing investment in China. The estimated fair values of the assets acquired and liabilities assumed are based on third party valuation and analysis performed by management. The valuation of certain assets and liabilities is preliminary and are subject to change as additional information becomes available. Concurrently, with the purchase of our East China joint venture, we sold our 50% interest in President Starbucks Coffee Taiwan Limited, our joint venture operations in Taiwan, to UPG for approximately $181.2 million . The transaction resulted in a pre-tax gain of $156.6 million which was included in net gain from divestiture of certain operations on our consolidated statements of earnings. The following table summarizes the preliminary allocation of the total consideration to the fair values of the assets acquired and liabilities assumed as of December 31, 2017 , which are reported within our China/Asia Pacific segment (in millions) : Consideration: Cash paid for UPG 50% equity interest $ 1,440.8 Fair value of our pre-existing 50% equity interest 1,440.8 Settlement of pre-existing liabilities 90.5 Total consideration $ 2,972.1 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 129.5 Accounts receivable 14.3 Inventories 16.1 Prepaid expenses and other current assets 20.6 Property, plant and equipment 254.1 Other long-term assets 44.6 Other intangible assets 818.0 Goodwill 2,164.1 Total assets acquired 3,461.3 Accounts payable 34.7 Accrued liabilities 187.7 Stored value card liability 21.7 Other long-term liabilities 245.1 Total liabilities assumed 489.2 Total consideration $ 2,972.1 As a result of this acquisition, we remeasured the carrying value of our preexisting 50% equity method investment to fair value, which resulted in a total gain of $1.4 billion that is not subject to income tax, and was presented as gain resulting from acquisition of joint venture on our consolidated statements of earnings. The fair value of $1.4 billion was calculated using an income approach, which was based on significant inputs that are not observable in the market and thus represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions used in estimating future cash flows included projected revenue growth and operating expenses, as well as the selection of an appropriate discount rate. Estimates of revenue growth and operating expenses were based on internal projections and considered the historical performance of stores, local market economics and the business environments impacting store performance. The discount rate applied was based on East China's weighted-average cost of capital and included company-specific and size risk premiums. The assets acquired and liabilities assumed are reported within our China/Asia Pacific segment. Other current and long-term assets acquired primarily include lease deposits and prepaid rent. Accrued liabilities and other long-term liabilities assumed primarily include deferred income tax, dividend payable, accrued payroll, income tax payable and accrued occupancy costs. The definite-lived intangibles primarily relate to reacquired rights to operate stores exclusively in East China. The reacquired rights of $798.0 million represent the fair value calculated over the remaining original contractual period and will be amortized on a straight-line basis through September 2022 . Amortization expense for these definite-lived intangible assets for the quarter and three quarters ended July 1, 2018 was $44.3 million and $88.8 million , respectively. The estimated future amortization expense is approximately $42.7 million in fiscal 2018, $170.7 million each year for the next three years and approximately $163.8 million in the final year of fiscal 2022. Goodwill represents the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including store partners in the region that have strong relationships with these customers, and the existing geographic retail and online presence. The entire balance was allocated to the China/Asia Pacific segment and is not deductible for income tax purposes. Due to foreign currency translation, the balance of goodwill related to the acquisition decreased $37.9 million since the date of acquisition to $2.1 billion as of July 1, 2018. The table below summarizes our estimated minimum future rental payments under the acquired non-cancelable operating leases as of July 1, 2018 (in millions): Operating Leases Year 1 $ 69.8 Year 2 60.8 Year 3 52.7 Year 4 45.1 Year 5 35.9 Thereafter 78.3 Total minimum lease payments $ 342.6 We began consolidating East China's results of operations and cash flows into our consolidated financial statements after December 31, 2017. For the quarter ended and three quarters ended July 1, 2018 , East China's revenue included in our consolidated statements of earnings was $301.0 million and $602.6 million , respectively. For the quarter ended and three quarters ended July 1, 2018 , East China's net earnings included in our consolidated statements of earnings was $19.2 million and $45.5 million , respectively. The following table provides the supplemental pro forma revenue and net earnings of the combined entity had the acquisition date of East China been October 3, 2016, the first day of our first quarter of fiscal 2017, rather than the end of our first quarter of fiscal 2018 (in millions) : Pro Forma (unaudited) Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 (1) Jul 1, 2018 Jul 2, 2017 (1) Revenue $ 6,310.3 $ 5,896.5 $ 18,686.8 $ 17,360.6 Net earnings attributable to Starbucks 802.9 773.1 2,494.5 3,331.6 (1) The pro forma net earnings attributable to Starbucks for fiscal 2017 includes the acquisition-related gain of $2.5 million and $1,376.4 million and transaction and integration costs of $18.3 million and $30.7 million for the quarter and three quarters ended July 2, 2017, respectively. The amounts in the supplemental pro forma earnings for the periods presented above fully eliminate intercompany transactions, apply our accounting policies and reflect adjustments for additional occupancy costs as well as depreciation and amortization that would have been charged assuming the same fair value adjustments to leases, property, plant and equipment and acquired intangibles had been applied on October 3, 2016. These pro forma results are unaudited and are not necessarily indicative of results of operations that would have occurred had the acquisition actually closed in the prior year period or indicative of the results of operations for any future period. During the three quarters ended July 1, 2018, we incurred approximately $3.5 million of acquisition-related costs, such as regulatory, legal, and advisory fees, which were recorded in general and administrative expenses. On December 11, 2017, we sold the assets associated with our Tazo brand including Tazo ® signature recipes, intellectual property and inventory to Unilever for a total of $383.8 million . The transaction resulted in a pre-tax gain of $347.9 million , which was included in the net gain from divestiture of certain operations on our consolidated statements of earnings. Results from Tazo operations prior to the sale are reported primarily in Channel Development. Fiscal 2017 In the fourth quarter of fiscal 2017, we sold our company-operated retail store assets and operations in Singapore to Maxim's Caterers Limited, converting these operations to a fully licensed market, for a total of $119.9 million . This transaction resulted in a pre-tax gain of $83.9 million , which was included in interest income and other, net on our consolidated statements of earnings. An insignificant settlement related to the divestiture was received in the first quarter of fiscal 2018 and included in gains from divestiture of certain operations on our consolidated statements of earnings. Note 2: Acquisitions and Divestitures Fiscal 2018 On March 23, 2018, we sold our company-operated retail store assets and operations in Brazil to SouthRock converting these operations to a fully licensed market, for a total of $48.2 million . This transaction resulted in a pre-tax loss of $8.5 million , which was included in net gain from divestiture of certain operations on our consolidated statements of earnings. On December 31, 2017, we acquired the remaining 50% interest of our East China joint venture (“East China”) from President Chain Store (Hong Kong) Holding Ltd. and Kai Yu (BVI) collectively, “Uni-President Group” or “UPG”, for approximately $1.4 billion . Approximately $90.5 million of pre-existing liabilities owed by East China to Starbucks were effectively settled upon the acquisition. Acquiring the remaining interest of East China, which operates over 1,400 stores in the Shanghai, Jiangsu and Zhejiang Provinces, builds on the Company's ongoing investment in China. The estimated fair values of the assets acquired and liabilities assumed are based on third party valuation and analysis performed by management. The valuation of certain assets and liabilities is preliminary and are subject to change as additional information becomes available. Concurrently, with the purchase of our East China joint venture, we sold our 50% interest in President Starbucks Coffee Taiwan Limited, our joint venture operations in Taiwan, to UPG for approximately $181.2 million . The transaction resulted in a pre-tax gain of $156.6 million which was included in net gain from divestiture of certain operations on our consolidated statements of earnings. The following table summarizes the preliminary allocation of the total consideration to the fair values of the assets acquired and liabilities assumed as of December 31, 2017 , which are reported within our China/Asia Pacific segment (in millions) : Consideration: Cash paid for UPG 50% equity interest $ 1,440.8 Fair value of our pre-existing 50% equity interest 1,440.8 Settlement of pre-existing liabilities 90.5 Total consideration $ 2,972.1 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 129.5 Accounts receivable 14.3 Inventories 16.1 Prepaid expenses and other current assets 20.6 Property, plant and equipment 254.1 Other long-term assets 44.6 Other intangible assets 818.0 Goodwill 2,164.1 Total assets acquired 3,461.3 Accounts payable 34.7 Accrued liabilities 187.7 Stored value card liability 21.7 Other long-term liabilities 245.1 Total liabilities assumed 489.2 Total consideration $ 2,972.1 As a result of this acquisition, we remeasured the carrying value of our preexisting 50% equity method investment to fair value, which resulted in a total gain of $1.4 billion that is not subject to income tax, and was presented as gain resulting from acquisition of joint venture on our consolidated statements of earnings. The fair value of $1.4 billion was calculated using an income approach, which was based on significant inputs that are not observable in the market and thus represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions used in estimating future cash flows included projected revenue growth and operating expenses, as well as the selection of an appropriate discount rate. Estimates of revenue growth and operating expenses were based on internal projections and considered the historical performance of stores, local market economics and the business environments impacting store performance. The discount rate applied was based on East China's weighted-average cost of capital and included company-specific and size risk premiums. The assets acquired and liabilities assumed are reported within our China/Asia Pacific segment. Other current and long-term assets acquired primarily include lease deposits and prepaid rent. Accrued liabilities and other long-term liabilities assumed primarily include deferred income tax, dividend payable, accrued payroll, income tax payable and accrued occupancy costs. The definite-lived intangibles primarily relate to reacquired rights to operate stores exclusively in East China. The reacquired rights of $798.0 million represent the fair value calculated over the remaining original contractual period and will be amortized on a straight-line basis through September 2022 . Amortization expense for these definite-lived intangible assets for the quarter and three quarters ended July 1, 2018 was $44.3 million and $88.8 million , respectively. The estimated future amortization expense is approximately $42.7 million in fiscal 2018, $170.7 million each year for the next three years and approximately $163.8 million in the final year of fiscal 2022. Goodwill represents the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including store partners in the region that have strong relationships with these customers, and the existing geographic retail and online presence. The entire balance was allocated to the China/Asia Pacific segment and is not deductible for income tax purposes. Due to foreign currency translation, the balance of goodwill related to the acquisition decreased $37.9 million since the date of acquisition to $2.1 billion as of July 1, 2018. The table below summarizes our estimated minimum future rental payments under the acquired non-cancelable operating leases as of July 1, 2018 (in millions): Operating Leases Year 1 $ 69.8 Year 2 60.8 Year 3 52.7 Year 4 45.1 Year 5 35.9 Thereafter 78.3 Total minimum lease payments $ 342.6 We began consolidating East China's results of operations and cash flows into our consolidated financial statements after December 31, 2017. For the quarter ended and three quarters ended July 1, 2018 , East China's revenue included in our consolidated statements of earnings was $301.0 million and $602.6 million , respectively. For the quarter ended and three quarters ended July 1, 2018 , East China's net earnings included in our consolidated statements of earnings was $19.2 million and $45.5 million , respectively. The following table provides the supplemental pro forma revenue and net earnings of the combined entity had the acquisition date of East China been October 3, 2016, the first day of our first quarter of fiscal 2017, rather than the end of our first quarter of fiscal 2018 (in millions) : Pro Forma (unaudited) Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 (1) Jul 1, 2018 Jul 2, 2017 (1) Revenue $ 6,310.3 $ 5,896.5 $ 18,686.8 $ 17,360.6 Net earnings attributable to Starbucks 802.9 773.1 2,494.5 3,331.6 (1) The pro forma net earnings attributable to Starbucks for fiscal 2017 includes the acquisition-related gain of $2.5 million and $1,376.4 million and transaction and integration costs of $18.3 million and $30.7 million for the quarter and three quarters ended July 2, 2017, respectively. The amounts in the supplemental pro forma earnings for the periods presented above fully eliminate intercompany transactions, apply our accounting policies and reflect adjustments for additional occupancy costs as well as depreciation and amortization that would have been charged assuming the same fair value adjustments to leases, property, plant and equipment and acquired intangibles had been applied on October 3, 2016. These pro forma results are unaudited and are not necessarily indicative of results of operations that would have occurred had the acquisition actually closed in the prior year period or indicative of the results of operations for any future period. During the three quarters ended July 1, 2018, we incurred approximately $3.5 million of acquisition-related costs, such as regulatory, legal, and advisory fees, which were recorded in general and administrative expenses. On December 11, 2017, we sold the assets associated with our Tazo brand including Tazo ® signature recipes, intellectual property and inventory to Unilever for a total of $383.8 million . The transaction resulted in a pre-tax gain of $347.9 million , which was included in the net gain from divestiture of certain operations on our consolidated statements of earnings. Results from Tazo operations prior to the sale are reported primarily in Channel Development. Fiscal 2017 In the fourth quarter of fiscal 2017, we sold our company-operated retail store assets and operations in Singapore to Maxim's Caterers Limited, converting these operations to a fully licensed market, for a total of $119.9 million . This transaction resulted in a pre-tax gain of $83.9 million , which was included in interest income and other, net on our consolidated statements of earnings. An insignificant settlement related to the divestiture was received in the first quarter of fiscal 2018 and included in gains from divestiture of certain operations on our consolidated statements of earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jul. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rates We are subject to interest rate volatility relating to our debt issuances. From time to time, we enter into swap agreements to manage our exposure to interest rate fluctuations. To hedge the variability in cash flows due to changes in benchmark interest rates, we enter into interest rate swap agreements 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. To hedge the exposure to changes in the fair value of our fixed-rate debt, we enter into interest rate swap agreements, which are designated as fair value hedges. The changes in fair values of these derivative instruments and the offsetting changes in fair values of the underlying hedged debt are recorded in interest expense and have an insignificant impact on our condensed consolidated statements of earnings. Refer to Note 8 , Debt, for additional information on our long-term debt. Foreign Currency To reduce cash flow volatility from foreign currency fluctuations, we enter into forward and swap contracts to hedge portions of cash flows of anticipated 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/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Outstanding Contract/Debt Remaining Maturity (Months) Jul 1, Oct 1, Cash Flow Hedges: Interest rates $ 16.2 $ 17.6 $ 3.6 90 Cross-currency swaps (12.7 ) (6.0 ) — 77 Foreign currency - other 6.6 (9.1 ) 3.9 36 Coffee (0.1 ) (6.6 ) (0.1 ) 8 Net Investment Hedges: Foreign currency 16.0 16.2 — 0 Foreign currency debt (11.0 ) (2.2 ) — 69 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 Three Quarters Ended Gains/(Losses) Recognized in OCI Before Reclassifications Gains/(Losses) Reclassified from AOCI to Earnings Gains/(Losses) Recognized in Gains/(Losses) Reclassified from AOCI to Earnings Jul 1, Jul 2, Jul 1, Jul 2, Jul 1, Jul 2, Jul 1, Jul 2, Cash Flow Hedges: Interest rates $ 4.7 $ — $ 1.2 $ 1.2 $ 1.5 $ — $ 3.6 $ 3.6 Cross-currency swaps 19.7 5.9 18.5 1.6 (16.4 ) 58.5 (8.1 ) 55.8 Foreign currency - other 21.7 (10.6 ) (0.8 ) 4.2 15.6 15.9 (5.7 ) 12.2 Coffee (0.1 ) (10.7 ) (0.5 ) 0.7 (0.1 ) (9.8 ) (7.3 ) (0.3 ) Net Investment Hedges: Foreign currency — 2.7 — — (0.1 ) 28.2 — — Foreign currency debt 32.4 — — — (11.7 ) (9.6 ) — — Pretax gains and losses on non-designated derivatives and designated fair value hedging instruments recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Non-Designated Derivatives: Foreign currency - other $ (1.3 ) $ 6.6 $ (2.4 ) $ 10.0 Dairy 0.1 (0.6 ) (1.9 ) 2.2 Diesel fuel and other commodities 2.0 (1.4 ) 2.9 (0.9 ) Designated Fair Value Hedging Instruments: Interest rate swap (5.1 ) (4.8 ) (28.5 ) (4.8 ) Notional amounts of outstanding derivative contracts (in millions) : Jul 1, 2018 Oct 1, 2017 Interest rate swap $ 1,250 $ 750 Cross-currency swaps 464 514 Foreign currency - other 1,043 901 Coffee 4 — Dairy 34 14 Diesel fuel and other commodities 17 41 Fair value of outstanding derivative contracts ( in millions ): Derivative Assets Derivative Liabilities Jul 1, 2018 Oct 1, 2017 Jul 1, 2018 Oct 1, 2017 Designated Derivative Instruments: Interest rates $ 1.5 $ — $ — $ — Cross-currency swaps — 12.4 14.0 9.8 Foreign currency - other 12.9 7.7 3.7 20.8 Coffee — — 0.1 — Net investment hedges — 0.3 — — Interest rate swap — — 34.4 3.8 Non-designated Derivative Instruments: Foreign currency 15.9 15.8 7.2 1.4 Dairy 0.2 — 0.9 2.4 Diesel fuel and other commodities 1.5 1.6 0.3 0.3 Additional disclosures related to cash flow gains and losses included in AOCI, as well as subsequent reclassifications to earnings, are included in Note 9 , Equity. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis (in millions) : Fair Value Measurements at Reporting Date Using Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 1,892.1 $ 1,892.1 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 11.8 — 11.8 — Mortgage and other asset-backed securities 1.4 — 1.4 — Total available-for-sale securities 13.2 — 13.2 — Trading securities 71.3 71.3 — — Total short-term investments 84.5 71.3 13.2 — Prepaid expenses and other current assets: Derivative assets 25.1 0.8 24.3 — Long-term investments: Available-for-sale securities Agency obligations 5.9 — 5.9 — Corporate debt securities 108.9 — 108.9 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 3.6 — 3.6 — U.S. government treasury securities 103.6 103.6 — — State and local government obligations 4.8 — 4.8 — Mortgage and other asset-backed securities 28.7 — 28.7 — Total long-term investments 261.4 103.6 151.9 5.9 Other long-term assets: Derivative assets 6.9 — 6.9 — Total assets $ 2,270.0 $ 2,067.8 $ 196.3 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 7.0 $ 1.2 $ 5.8 $ — Other long-term liabilities: Derivative liabilities 53.6 — 53.6 — Total liabilities $ 60.6 $ 1.2 $ 59.4 $ — 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 $ 2,462.3 $ 2,462.3 $ — $ — Short-term investments: Available-for-sale securities Agency obligations 7.5 — 7.5 — Commercial paper 2.0 — 2.0 — Corporate debt securities 49.4 — 49.4 — Foreign government obligations 7.1 — 7.1 — U.S. government treasury securities 81.4 81.4 — — State and local government obligations 2.0 — 2.0 — Certificates of deposit 2.3 — 2.3 — Total available-for-sale securities 151.7 81.4 70.3 — Trading securities 76.9 76.9 — — Total short-term investments 228.6 158.3 70.3 — Prepaid expenses and other current assets: Derivative assets 13.4 0.1 13.3 — Long-term investments: Available-for-sale securities Agency obligations 21.8 — 21.8 — Corporate debt securities 207.4 — 207.4 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 17.1 — 17.1 — U.S. government treasury securities 127.4 127.4 — — State and local government obligations 7.0 — 7.0 — Mortgage and other asset-backed securities 155.7 — 155.7 — Total long-term investments 542.3 127.4 409.0 5.9 Other long-term assets: Derivative assets 24.4 — 24.4 — Total assets $ 3,271.0 $ 2,748.1 $ 517.0 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 16.4 $ 2.5 $ 13.9 $ — Other long-term liabilities: Derivative liabilities 22.1 — 22.1 — Total liabilities $ 38.5 $ 2.5 $ 36.0 $ — There were no material transfers between levels, and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists. Gross unrealized holding gains and losses on investments were not material as of July 1, 2018 and October 1, 2017 . 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. For goodwill related to our Switzerland retail reporting unit, we initially recorded an impairment charge of $17.9 million in the third quarter of fiscal 2017. This was primarily due to the impacts of the strength of the Swiss franc, continued shift of consumer behaviors to neighboring countries and the relocations of certain businesses sustaining beyond our projections and indicating the reporting unit's carrying value would not be fully recovered. Since then, the operational investments and improvements we have made have not sufficiently slowed the performance decline, and we recorded an additional impairment charge of $28.5 million during the second quarter of fiscal 2018. The remaining goodwill balance for this reporting unit was $8.9 million as of July 1, 2018. During the third quarter of fiscal 2017, management finalized its long-term strategy for the Teavana reporting unit. The plan emphasizes sales of premium Teavana TM/MC tea products at Starbucks branded stores and, to a lesser extent, consumer product channels. This change in strategic direction triggered an impairment test first of the retail store assets and then an impairment test of the goodwill asset, which also coincided with our annual goodwill testing process. The retail store assets were determined to be fully impaired, which resulted in a charge of $33.0 million . For goodwill, we utilized a combination of income and market approaches to determine the implied fair value of the reporting unit. These approaches used primarily unobservable inputs, including discount, sales growth and royalty rates and valuation multiples of a selection of similar publicly traded companies, which are considered Level 3 fair value measurements. We then compared the implied fair value with the carrying value and recognized a goodwill impairment charge of $69.3 million , thus reducing goodwill of the Teavana reporting unit to $398.3 million as of July 2, 2017. During the third quarter of fiscal 2018, we dissolved the Teavana reporting unit due to completing the majority of the retail store closures. As a result, we reorganized the Teavana business and allocated the remaining $398.3 million of goodwill to other reporting units, primarily within the Americas segment, based on a relative fair value approach. Other intangible assets of $117.2 million , consisting primarily of the indefinite-lived tradename and definite-lived tea recipes, were also tested, and no impairment losses were recorded. The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 8 , Debt. Other than the aforementioned fair value adjustments, there were no other material fair value adjustments during the quarter and three quarters ended July 1, 2018 and July 2, 2017. |
Inventories
Inventories | 9 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (in millions) Jul 1, 2018 Oct 1, 2017 Jul 2, 2017 Coffee: Unroasted $ 624.5 $ 541.0 $ 614.7 Roasted 267.6 301.1 258.4 Other merchandise held for sale 248.1 301.1 261.3 Packaging and other supplies 247.2 220.8 222.9 Total $ 1,387.4 $ 1,364.0 $ 1,357.3 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 July 1, 2018 , we had committed to purchasing green coffee totaling $843 million under fixed-price contracts and an estimated $343 million under price-to-be-fixed contracts. As of July 1, 2018 , approximately $4 million of our price-to-be fixed contracts were effectively fixed through the use of futures contracts. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date, and therefore the price, at which the base “C” coffee commodity price component will be fixed has not yet been established. For most contracts, either Starbucks or the seller has the option to “fix” the base “C” coffee commodity price prior to the delivery date. For other contracts, Starbucks and the seller may agree upon pricing parameters determined by the base “C” coffee commodity price. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on relationships established with our suppliers in the past, the risk of non-delivery on these purchase commitments is remote. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Jul. 01, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information (in millions) Prepaid Expenses and Other Current Assets Jul 1, 2018 Oct 1, 2017 Income tax receivable $ 956.3 $ 68.0 Other prepaid expenses and current assets 408.3 290.1 Total prepaid expenses and current assets $ 1,364.6 $ 358.1 Property, Plant and Equipment, net Jul 1, 2018 Oct 1, 2017 Land $ 46.8 $ 46.9 Buildings 549.7 481.7 Leasehold improvements 7,103.5 6,401.0 Store equipment 2,314.4 2,110.7 Roasting equipment 629.9 619.8 Furniture, fixtures and other 1,634.9 1,514.1 Work in progress 521.8 409.8 Property, plant and equipment, gross 12,801.0 11,584.0 Accumulated depreciation (7,111.4 ) (6,664.5 ) Property, plant and equipment, net $ 5,689.6 $ 4,919.5 Accrued Liabilities Jul 1, 2018 Oct 1, 2017 Accrued compensation and related costs $ 637.2 $ 524.5 Accrued occupancy costs 168.9 151.3 Accrued taxes 280.1 226.6 Accrued dividends payable 491.9 429.5 Accrued capital and other operating expenditures 742.6 602.6 Total accrued liabilities $ 2,320.7 $ 1,934.5 Other Long-Term Liabilities Jul 1, 2018 Oct 1, 2017 Deferred income taxes, net $ 362.6 $ 6.3 Other long-term liabilities 1,122.1 749.0 Total other long-term liabilities $ 1,484.7 $ 755.3 |
Debt
Debt | 9 Months Ended |
Jul. 01, 2018 | |
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 $3 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 July 1, 2018 , we had $300.0 million of borrowings outstanding under the program. Long-term Debt Components of long-term debt including the associated interest rates and related estimated fair values by calendar maturity ( in millions, except interest rates) : Jul 1, 2018 Oct 1, 2017 Stated Interest Rate Effective Interest Rate (1) Issuance Amount Estimated Fair Value Amount Estimated Fair Value 2018 notes $ 350.0 $ 349 $ 350.0 $ 352 2.000 % 2.012 % 2020 notes (2) 500.0 489 — — 2.200 % 2.228 % 2021 notes 500.0 486 500.0 501 2.100 % 2.293 % 2021 notes 250.0 243 250.0 250 2.100 % 1.600 % 2022 notes 500.0 486 500.0 508 2.700 % 2.819 % 2023 notes (5) 750.0 758 750.0 806 3.850 % 2.859 % 2023 notes (3) 1,000.0 981 — — 3.100 % 3.107 % 2024 notes (4) 768.0 767 755.3 760 0.372 % 0.462 % 2026 notes 500.0 448 500.0 481 2.450 % 2.511 % 2028 notes (3) 600.0 577 — — 3.500 % 3.529 % 2045 notes 350.0 336 350.0 381 4.300 % 4.348 % 2047 notes (2) 500.0 434 — — 3.750 % 3.765 % Total 6,568.0 6,354 3,955.3 4,039 Aggregate debt issuance costs and unamortized premium, net (35.4 ) (17.5 ) Hedge accounting fair value adjustment (5) (33.7 ) (5.2 ) Total $ 6,498.9 $ 3,932.6 (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) Issued in November 2017 . (3) Issued in February 2018 . (4) Japanese yen-denominated long-term debt. (5) Amount represents the change in fair value due to changes in benchmark interest rates related to our 2023 notes. Refer to Note 3 , Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge. 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 July 1, 2018 , we were in compliance with all applicable covenants. The following table summarizes our long-term debt maturities as of July 1, 2018 by fiscal year ( in millions ): Fiscal Year Total 2019 $ 350.0 2020 — 2021 1,250.0 2022 500.0 2023 1,000.0 Thereafter 3,468.0 Total $ 6,568.0 |
Equity
Equity | 9 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Equity | Changes in total equity (in millions) : Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Attributable to Starbucks Noncontrolling interests Total Equity Attributable to Starbucks Noncontrolling interest Total Equity Beginning balance of total equity $ 5,450.1 $ 6.9 $ 5,457.0 $ 5,884.0 $ 6.7 $ 5,890.7 Net earnings including noncontrolling interests 3,762.8 (0.9 ) 3,761.9 2,096.1 (0.6 ) 2,095.5 Translation adjustment and other, net of reclassifications and tax (49.9 ) — (49.9 ) (76.1 ) — (76.1 ) Unrealized gains/(losses), net of reclassifications and tax 2.8 — 2.8 (0.6 ) — (0.6 ) Other comprehensive income/(loss) (47.1 ) — (47.1 ) (76.7 ) — (76.7 ) Stock-based compensation expense 187.4 — 187.4 150.1 — 150.1 Exercise of stock options/vesting of RSUs 47.6 — 47.6 108.0 — 108.0 Sale of common stock 23.9 — 23.9 21.6 — 21.6 Repurchase of common stock (4,111.5 ) — (4,111.5 ) (1,254.1 ) — (1,254.1 ) Cash dividends declared (1,322.5 ) — (1,322.5 ) (1,085.6 ) — (1,085.6 ) Ending balance of total equity $ 3,990.7 $ 6.0 $ 3,996.7 $ 5,843.4 $ 6.1 $ 5,849.5 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 July 1, 2018 Net gains/(losses) in AOCI, beginning of period $ (5.0 ) $ (10.7 ) $ (19.1 ) $ 67.7 $ 32.9 Net gains/(losses) recognized in OCI before reclassifications (0.4 ) 35.6 24.1 (280.6 ) (221.3 ) Net (gains)/losses reclassified from AOCI to earnings 0.6 (14.9 ) — — (14.3 ) Other comprehensive income/(loss) attributable to Starbucks 0.2 20.7 24.1 (280.6 ) (235.6 ) Net gains/(losses) in AOCI, end of period $ (4.8 ) $ 10.0 $ 5.0 $ (212.9 ) $ (202.7 ) July 2, 2017 Net gains/(losses) in AOCI, beginning of period $ (5.3 ) $ 21.6 $ 11.3 $ (234.0 ) $ (206.4 ) Net gains/(losses) recognized in OCI before reclassifications 1.0 (12.7 ) 1.7 36.2 26.2 Net (gains)/losses reclassified from AOCI to earnings 0.8 (5.7 ) — — (4.9 ) Other comprehensive income/(loss) attributable to Starbucks 1.8 (18.4 ) 1.7 36.2 21.3 Net gains/(losses) in AOCI, end of period $ (3.5 ) $ 3.2 $ 13.0 $ (197.8 ) $ (185.1 ) Three Quarters Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total July 1, 2018 Net gains/(losses) in AOCI, beginning of period $ (2.5 ) $ (4.1 ) $ 14.0 $ (163.0 ) $ (155.6 ) Net gains/(losses) recognized in OCI before reclassifications (4.7 ) (0.6 ) (9.0 ) (66.8 ) (81.1 ) Net (gains)/losses reclassified from AOCI to earnings 2.4 14.7 — 16.9 34.0 Other comprehensive income/(loss) attributable to Starbucks (2.3 ) 14.1 (9.0 ) (49.9 ) (47.1 ) Net gains/(losses) in AOCI, end of period $ (4.8 ) $ 10.0 $ 5.0 $ (212.9 ) $ (202.7 ) July 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 (6.9 ) 48.5 11.7 (76.1 ) (22.8 ) Net (gains)/losses reclassified from AOCI to earnings 2.3 (56.2 ) — — (53.9 ) Other comprehensive income/(loss) attributable to Starbucks (4.6 ) (7.7 ) 11.7 (76.1 ) (76.7 ) Net gains/(losses) in AOCI, end of period $ (3.5 ) $ 3.2 $ 13.0 $ (197.8 ) $ (185.1 ) Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions) : Quarter Ended AOCI Amounts Reclassified from AOCI Affected Line Item in Jul 1, 2018 Jul 2, 2017 Gains/(losses) on available-for-sale securities $ (0.9 ) $ (1.2 ) Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 1.2 1.2 Interest expense Cross-currency swaps 18.5 1.5 Interest income and other, net Foreign currency hedges 0.5 1.2 Revenues Foreign currency/coffee hedges (1.8 ) 3.7 Cost of sales including occupancy costs 17.5 6.4 Total before tax (3.2 ) (1.5 ) Tax benefit $ 14.3 $ 4.9 Net of tax Three Quarters Ended AOCI Amounts Reclassified from AOCI Affected Line Item in Jul 1, 2018 Jul 2, 2017 Gains/(losses) on available-for-sale securities $ (3.3 ) $ (3.2 ) Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 3.6 3.6 Interest expense Cross-currency swaps (8.1 ) 55.6 Interest income and other, net Foreign currency hedges (1.3 ) 3.7 Revenues Foreign currency/coffee hedges (11.7 ) 8.2 Cost of sales including occupancy costs Gains/(losses) on net investment hedges — — Interest income and other, net Translation adjustment Brazil (24.1 ) — Net gain resulting from divestiture of certain operations East China joint venture 7.2 — Gain resulting from acquisition of joint venture Taiwan joint venture 1.4 — Net gain resulting from divestiture of certain operations Other (1.7 ) — Interest income and other, net (38.0 ) 67.9 Total before tax 4.0 (14.0 ) Tax (expense)/benefit $ (34.0 ) $ 53.9 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 July 1, 2018 . We repurchased 73.0 million shares of common stock at a total cost of $4.1 billion , and 22.4 million shares at a total cost of $1.3 billion for the three quarters ended July 1, 2018 and July 2, 2017 , respectively. On April 26, 2018, we announced that our Board of Directors approved an increase of 100 million shares to our ongoing share repurchase program. As of July 1, 2018 , 107.3 million shares remained available for repurchase under current authorizations. During the third quarter of fiscal 2018 , our Board of Directors declared a quarterly cash dividend to shareholders of $0.36 per share to be paid on August 24, 2018 to shareholders of record as of the close of business on August 9, 2018 . |
Employee Stock Plans
Employee Stock Plans | 9 Months Ended |
Jul. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Plans | Employee Stock Plans As of July 1, 2018 , there were 55.6 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 12.9 million shares available for issuance under our employee stock purchase plan. Stock-based compensation expense recognized in the consolidated statements of earnings (in millions) : Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Options $ 2.0 $ 10.1 $ 23.2 $ 34.1 Restricted Stock Units (“RSUs”) 66.4 33.8 161.7 114.7 Total stock-based compensation expense $ 68.4 $ 43.9 $ 184.9 $ 148.8 Stock option and RSU transactions from October 1, 2017 through July 1, 2018 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, October 1, 2017 31.4 7.6 Granted 3.9 9.1 Options exercised/RSUs vested (5.2 ) (3.1 ) Forfeited/expired (1.4 ) (1.8 ) Options outstanding/Nonvested RSUs, July 1, 2018 28.7 11.8 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of July 1, 2018 $ 24.2 $ 282.3 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our interim tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events that may occur during the quarter. We recognize the effects of tax legislation in the period in which the law is enacted. Our deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years we estimate the related temporary differences to reverse. On December 22, 2017 , the President of the United States signed and enacted comprehensive tax legislation into law H.R. 1, commonly referred to as the Tax Act. Except for certain provisions, the Tax Act is effective for tax years beginning on or after January 1, 2018 . As a fiscal year U.S. taxpayer, the majority of the provisions will apply to our fiscal 2019, such as eliminating the domestic manufacturing deduction, creating new taxes on certain foreign sourced income and introducing new limitations on certain business deductions. For fiscal 2018 and effective in the first fiscal quarter, the most significant impacts include: lowering of the U.S. federal corporate income tax rate; remeasuring certain net deferred tax liabilities; and requiring the transition tax on the deemed repatriation of certain foreign earnings. The phase in of the lower corporate income tax rate resulted in a blended rate of 24.5% for fiscal 2018, as compared to the previous 35% . The tax rate will be reduced to 21% in subsequent fiscal years. We recorded net income tax benefit for the provisional remeasurement of certain deferred taxes and related amounts of $82 million for the three quarters ended July 1, 2018 . Additionally, we recorded a provisional $233 million of income tax expense for the estimated effects of the transition tax, net of adjustments related to uncertain tax positions for the three quarters ended July 1, 2018 . Of the total provisional transition tax obligation recorded to date, $237 million of income taxes payable was included in other long-term liabilities on the condensed consolidated balance sheet as of July 1, 2018. Based on our current interpretation of the Tax Act, we made reasonable estimates to record provisional adjustments during fiscal 2018, as described above. Collectively, these items did not have a material impact to our condensed consolidated financial statements. Since we are still accumulating and processing data to finalize the underlying calculations and expect regulators to issue further guidance, among other things, we believe our estimates may change during fiscal 2018. We continue to refine such amounts within the measurement period allowed, which will be completed no later than the first quarter of fiscal 2019. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Calculation of net earnings per common share (“EPS”) — basic and diluted ( in millions, except EPS ): Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Net earnings attributable to Starbucks $ 852.5 $ 691.6 $ 3,762.8 $ 2,096.1 Weighted average common shares outstanding (for basic calculation) 1,377.1 1,447.7 1,397.7 1,452.8 Dilutive effect of outstanding common stock options and RSUs 11.4 11.7 12.2 12.1 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,388.5 1,459.4 1,409.9 1,464.9 EPS — basic $ 0.62 $ 0.48 $ 2.69 $ 1.44 EPS — diluted $ 0.61 $ 0.47 $ 2.67 $ 1.43 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 7.9 million and 4.5 million as of July 1, 2018 and July 2, 2017 , respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Jul. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Legal Proceedings On April 13, 2010, an organization named Council for Education and Research on Toxics (“Plaintiff”) filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, against the Company and certain other defendants who manufacture, package, distribute or sell brewed coffee. The lawsuit is Council for Education and Research on Toxics v. Starbucks Corporation, et al .. On May 9, 2011, the Plaintiff filed an additional lawsuit in the Superior Court of the State of California, County of Los Angeles, against the Company and additional defendants who manufacture, package, distribute or sell packaged coffee. The lawsuit is Council for Education and Research on Toxics v. Brad Barry LLC, et al .. Both cases have since been consolidated and now include nearly eighty defendants, which constitute the great majority of the coffee industry in California. Plaintiff alleges that the Company and the other defendants failed to provide warnings for their coffee products of exposure to the chemical acrylamide as required under California Health and Safety Code section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Proposition 65. Plaintiff seeks equitable relief, including providing warnings to consumers of coffee products, as well as civil penalties in the amount of the statutory maximum of two thousand five hundred dollars per day per violation of Proposition 65. The Plaintiff asserts that every consumed cup of coffee, absent a compliant warning, is equivalent to a violation under Proposition 65. The Company, as part of a joint defense group organized to defend against the lawsuit, disputes the claims of the Plaintiff. Acrylamide is not added to coffee, but is present in all coffee in small amounts (parts per billion) as a byproduct of the coffee bean roasting process. The Company has asserted multiple affirmative defenses. Trial of the first phase of the case commenced on September 8, 2014, and was limited to three affirmative defenses shared by all defendants. On September 1, 2015, the trial court issued a final ruling adverse to defendants on all Phase 1 defenses. Trial of the second phase of the case commenced in the fall of 2017. On May 7, 2018, the trial court issued a ruling adverse to defendants on the Phase 2 defense, the Company's last remaining defense to liability. The case is proceeding to a third phase where there will be trial on damages, remedies and attorneys' fees. At this stage of the proceedings, prior to a trial on remedies issues, Starbucks is unable to predict or reasonably estimate the potential loss or effect on the Company or its operations. Accordingly, no loss contingency was recorded for this matter. The trial court has discretion to impose zero penalties against the Company or to impose significant statutory penalties. Significant labeling or warning requirements that could potentially be imposed by the trial court may increase our costs and adversely affect sales of our coffee products, as well as involve substantial expense and operational disruption, which could have a material adverse impact on our financial position and our results of operations. Furthermore, a future appellate court decision could reverse the trial court rulings. The outcome and the financial impact of settlement or the trial or appellate court rulings of the case to the Company, if any, cannot be predicted. Starbucks is party to various other legal proceedings arising in the ordinary course of business, including certain employment litigation cases that have been certified as class or collective actions, but, except as noted above, is not currently a party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Segment information is prepared on the same basis that our ceo, who is our chief operating decision maker, 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/ EMEA Channel All Other Segments Segment July 1, 2018 Total net revenues $ 4,230.6 $ 1,229.0 $ 275.4 $ 509.0 $ 66.3 $ 6,310.3 Depreciation and amortization expenses 159.3 120.7 8.0 0.2 1.5 289.7 Income from equity investees — 23.5 — 47.9 — 71.4 Operating income/(loss) 908.7 234.1 34.9 212.8 (9.8 ) 1,380.7 July 2, 2017 Total net revenues $ 3,991.9 $ 840.6 $ 249.9 $ 478.7 $ 100.4 $ 5,661.5 Depreciation and amortization expenses 152.8 51.0 7.7 0.5 3.0 215.0 Income from equity investees — 51.8 — 49.2 — 101.0 Operating income/(loss) 974.8 223.8 9.8 210.2 (112.3 ) 1,306.3 Three Quarters Ended Americas China/ EMEA Channel All Other Segments Segment July 1, 2018 Total net revenues $ 12,500.2 $ 3,259.1 $ 825.3 $ 1,569.4 $ 261.9 $ 18,415.9 Depreciation and amortization expenses 477.7 296.0 23.8 0.9 3.2 801.6 Income from equity investees — 91.0 — 122.5 — 213.5 Operating income/(loss) 2,689.6 635.5 69.5 671.2 (154.4 ) 3,911.4 July 2, 2017 Total net revenues $ 11,703.7 $ 2,380.3 $ 743.9 $ 1,493.6 $ 367.0 $ 16,688.5 Depreciation and amortization expenses 460.6 148.9 22.9 1.7 9.3 643.4 Income from equity investees — 138.4 — 131.1 — 269.5 Operating income/(loss) 2,759.4 563.2 81.5 646.5 (127.9 ) 3,922.7 All Other Segments includes our Teavana business, and fiscal 2018 results reflect the strategy to close Teavana-branded retail stores announced in fiscal 2017 to focus on sales of premium Teavana TM/MC tea products at Starbucks branded stores and, to a lesser extent, consumer product channels. The existing portfolio of Teavana stores are expected to be closed during fiscal 2018. Lease exit costs associated with our restructuring efforts will be recognized concurrently with either actual store closures or upon reaching a lease termination agreement with the landlord. Total lease exit costs are expected to be approximately $134.7 million of which $1.5 million and $119.0 million were recorded within restructuring expenses on the consolidated statement of earnings in the quarter and three quarters ended July 1, 2018, respectively. During the first three quarters of 2017, we did not record any restructuring expenses. Previously recorded lease exit costs recorded within restructuring expenses for fiscal year 2017 were $15.7 million . Reconciliation of total segment operating income to consolidated earnings before income taxes (in millions) : Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Total segment operating income $ 1,380.7 $ 1,306.3 $ 3,911.4 $ 3,922.7 Unallocated corporate operating expenses (342.5 ) (262.1 ) (984.5 ) (810.6 ) Consolidated operating income 1,038.2 1,044.2 2,926.9 3,112.1 Gain resulting from acquisition of joint venture 2.5 — 1,376.4 — Net gain resulting from divestiture of certain operations — — 496.3 9.6 Interest income and other, net 31.5 31.7 155.2 114.1 Interest expense (45.4 ) (23.5 ) (106.4 ) (70.2 ) Earnings before income taxes $ 1,026.8 $ 1,052.4 $ 4,848.4 $ 3,165.6 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies Summary of Significant Policies (Policies) | 9 Months Ended |
Jul. 01, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued guidance on the reclassification of certain tax effects from accumulated other comprehensive income (“AOCI”). The guidance permits entities to reclassify the stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from AOCI to retained earnings. The guidance will be effective at the beginning of our first quarter of fiscal 2020 but permits adoption in an earlier period. The guidance may be applied in the period of adoption or retrospectively to each period in which the effect of the change related to the Tax Act was recognized. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. In August 2017, the FASB amended its guidance on the accounting of hedging relationships. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness, expands permissible cash flow hedges on contractually specified components, and simplifies hedge documentation and effectiveness assessment. The guidance will be effective at the beginning of our first quarter of fiscal 2020 and will require a modified retrospective approach on existing cash flow and net investment hedges. The presentation and disclosure requirements will be applied prospectively. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption. 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. 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. This guidance requires that excess tax benefits and tax deficiencies related to stock-based compensation 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 requires 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 adopted this guidance in the first quarter of fiscal 2018. The primary impact of the adoption was the recognition of excess tax benefits that reduced income tax expenses by $6.1 million and $50.5 million for the quarter and three quarters ended July 1, 2018 , respectively, instead of additional paid-in capital. As a result, net income increased $6.1 million and $50.5 million for the quarter and three quarters ended July 1, 2018 , respectively, and basic and diluted earnings per share had no impact and increased $0.04 for the quarter and three quarters ended July 1, 2018 , respectively. Excess tax benefits of $69.4 million , for the three quarters ended July 2, 2017 , previously reported in financing activities have been reclassified to operating activities in the consolidated statements 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. We will adopt and implement the provisions of this guidance and the new revenue recognition standard issued by the FASB, as discussed below, in the first quarter of fiscal 2019. 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. In July 2018, the FASB issued an alternative method that permits application of the new guidance at the beginning of the year of adoption. This is in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. The guidance will be effective for us at the beginning of our first quarter of fiscal 2020, with optional practical expedients. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the method of adoption. 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 preparation for the adoption of the guidance, we are in the process of implementing controls and key system changes to enable the preparation of financial information. 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 new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (“modified retrospective method”). We are currently evaluating the overall impact this guidance will have on our consolidated financial statements. Based on our continued assessment, which may identify other accounting impacts, we have 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 will adopt this guidance in the first quarter of fiscal 2019 utilizing the modified retrospective method. |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
Business Acquisition [Line Items] | |
Schedule of future minimum rental payments | The table below summarizes our estimated minimum future rental payments under the acquired non-cancelable operating leases as of July 1, 2018 (in millions): Operating Leases Year 1 $ 69.8 Year 2 60.8 Year 3 52.7 Year 4 45.1 Year 5 35.9 Thereafter 78.3 Total minimum lease payments $ 342.6 |
Schedule of pro forma information | The following table provides the supplemental pro forma revenue and net earnings of the combined entity had the acquisition date of East China been October 3, 2016, the first day of our first quarter of fiscal 2017, rather than the end of our first quarter of fiscal 2018 (in millions) : Pro Forma (unaudited) Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 (1) Jul 1, 2018 Jul 2, 2017 (1) Revenue $ 6,310.3 $ 5,896.5 $ 18,686.8 $ 17,360.6 Net earnings attributable to Starbucks 802.9 773.1 2,494.5 3,331.6 |
East China JV [Member] | |
Business Acquisition [Line Items] | |
Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the preliminary allocation of the total consideration to the fair values of the assets acquired and liabilities assumed as of December 31, 2017 , which are reported within our China/Asia Pacific segment (in millions) : Consideration: Cash paid for UPG 50% equity interest $ 1,440.8 Fair value of our pre-existing 50% equity interest 1,440.8 Settlement of pre-existing liabilities 90.5 Total consideration $ 2,972.1 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 129.5 Accounts receivable 14.3 Inventories 16.1 Prepaid expenses and other current assets 20.6 Property, plant and equipment 254.1 Other long-term assets 44.6 Other intangible assets 818.0 Goodwill 2,164.1 Total assets acquired 3,461.3 Accounts payable 34.7 Accrued liabilities 187.7 Stored value card liability 21.7 Other long-term liabilities 245.1 Total liabilities assumed 489.2 Total consideration $ 2,972.1 |
Derivative Financial Instrume22
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
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/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Outstanding Contract/Debt Remaining Maturity (Months) Jul 1, Oct 1, Cash Flow Hedges: Interest rates $ 16.2 $ 17.6 $ 3.6 90 Cross-currency swaps (12.7 ) (6.0 ) — 77 Foreign currency - other 6.6 (9.1 ) 3.9 36 Coffee (0.1 ) (6.6 ) (0.1 ) 8 Net Investment Hedges: Foreign currency 16.0 16.2 — 0 Foreign currency debt (11.0 ) (2.2 ) — 69 |
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 Three Quarters Ended Gains/(Losses) Recognized in OCI Before Reclassifications Gains/(Losses) Reclassified from AOCI to Earnings Gains/(Losses) Recognized in Gains/(Losses) Reclassified from AOCI to Earnings Jul 1, Jul 2, Jul 1, Jul 2, Jul 1, Jul 2, Jul 1, Jul 2, Cash Flow Hedges: Interest rates $ 4.7 $ — $ 1.2 $ 1.2 $ 1.5 $ — $ 3.6 $ 3.6 Cross-currency swaps 19.7 5.9 18.5 1.6 (16.4 ) 58.5 (8.1 ) 55.8 Foreign currency - other 21.7 (10.6 ) (0.8 ) 4.2 15.6 15.9 (5.7 ) 12.2 Coffee (0.1 ) (10.7 ) (0.5 ) 0.7 (0.1 ) (9.8 ) (7.3 ) (0.3 ) Net Investment Hedges: Foreign currency — 2.7 — — (0.1 ) 28.2 — — Foreign currency debt 32.4 — — — (11.7 ) (9.6 ) — — |
Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings | Pretax gains and losses on non-designated derivatives and designated fair value hedging instruments recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Non-Designated Derivatives: Foreign currency - other $ (1.3 ) $ 6.6 $ (2.4 ) $ 10.0 Dairy 0.1 (0.6 ) (1.9 ) 2.2 Diesel fuel and other commodities 2.0 (1.4 ) 2.9 (0.9 ) Designated Fair Value Hedging Instruments: Interest rate swap (5.1 ) (4.8 ) (28.5 ) (4.8 ) |
Notional Amounts of Outstanding Derivative Contracts | Notional amounts of outstanding derivative contracts (in millions) : Jul 1, 2018 Oct 1, 2017 Interest rate swap $ 1,250 $ 750 Cross-currency swaps 464 514 Foreign currency - other 1,043 901 Coffee 4 — Dairy 34 14 Diesel fuel and other commodities 17 41 |
Fair Value of Outstanding Derivative Contracts | Fair value of outstanding derivative contracts ( in millions ): Derivative Assets Derivative Liabilities Jul 1, 2018 Oct 1, 2017 Jul 1, 2018 Oct 1, 2017 Designated Derivative Instruments: Interest rates $ 1.5 $ — $ — $ — Cross-currency swaps — 12.4 14.0 9.8 Foreign currency - other 12.9 7.7 3.7 20.8 Coffee — — 0.1 — Net investment hedges — 0.3 — — Interest rate swap — — 34.4 3.8 Non-designated Derivative Instruments: Foreign currency 15.9 15.8 7.2 1.4 Dairy 0.2 — 0.9 2.4 Diesel fuel and other commodities 1.5 1.6 0.3 0.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Assets and liabilities measured at fair value on a recurring basis (in millions) : Fair Value Measurements at Reporting Date Using Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 1,892.1 $ 1,892.1 $ — $ — Short-term investments: Available-for-sale securities Corporate debt securities 11.8 — 11.8 — Mortgage and other asset-backed securities 1.4 — 1.4 — Total available-for-sale securities 13.2 — 13.2 — Trading securities 71.3 71.3 — — Total short-term investments 84.5 71.3 13.2 — Prepaid expenses and other current assets: Derivative assets 25.1 0.8 24.3 — Long-term investments: Available-for-sale securities Agency obligations 5.9 — 5.9 — Corporate debt securities 108.9 — 108.9 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 3.6 — 3.6 — U.S. government treasury securities 103.6 103.6 — — State and local government obligations 4.8 — 4.8 — Mortgage and other asset-backed securities 28.7 — 28.7 — Total long-term investments 261.4 103.6 151.9 5.9 Other long-term assets: Derivative assets 6.9 — 6.9 — Total assets $ 2,270.0 $ 2,067.8 $ 196.3 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 7.0 $ 1.2 $ 5.8 $ — Other long-term liabilities: Derivative liabilities 53.6 — 53.6 — Total liabilities $ 60.6 $ 1.2 $ 59.4 $ — 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 $ 2,462.3 $ 2,462.3 $ — $ — Short-term investments: Available-for-sale securities Agency obligations 7.5 — 7.5 — Commercial paper 2.0 — 2.0 — Corporate debt securities 49.4 — 49.4 — Foreign government obligations 7.1 — 7.1 — U.S. government treasury securities 81.4 81.4 — — State and local government obligations 2.0 — 2.0 — Certificates of deposit 2.3 — 2.3 — Total available-for-sale securities 151.7 81.4 70.3 — Trading securities 76.9 76.9 — — Total short-term investments 228.6 158.3 70.3 — Prepaid expenses and other current assets: Derivative assets 13.4 0.1 13.3 — Long-term investments: Available-for-sale securities Agency obligations 21.8 — 21.8 — Corporate debt securities 207.4 — 207.4 — Auction rate securities 5.9 — — 5.9 Foreign government obligations 17.1 — 17.1 — U.S. government treasury securities 127.4 127.4 — — State and local government obligations 7.0 — 7.0 — Mortgage and other asset-backed securities 155.7 — 155.7 — Total long-term investments 542.3 127.4 409.0 5.9 Other long-term assets: Derivative assets 24.4 — 24.4 — Total assets $ 3,271.0 $ 2,748.1 $ 517.0 $ 5.9 Liabilities: Accrued liabilities: Derivative liabilities $ 16.4 $ 2.5 $ 13.9 $ — Other long-term liabilities: Derivative liabilities 22.1 — 22.1 — Total liabilities $ 38.5 $ 2.5 $ 36.0 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Jul 1, 2018 Oct 1, 2017 Jul 2, 2017 Coffee: Unroasted $ 624.5 $ 541.0 $ 614.7 Roasted 267.6 301.1 258.4 Other merchandise held for sale 248.1 301.1 261.3 Packaging and other supplies 247.2 220.8 222.9 Total $ 1,387.4 $ 1,364.0 $ 1,357.3 |
Supplemental Balance Sheet In25
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Property, Plant And Equipment, net | Jul 1, 2018 Oct 1, 2017 Land $ 46.8 $ 46.9 Buildings 549.7 481.7 Leasehold improvements 7,103.5 6,401.0 Store equipment 2,314.4 2,110.7 Roasting equipment 629.9 619.8 Furniture, fixtures and other 1,634.9 1,514.1 Work in progress 521.8 409.8 Property, plant and equipment, gross 12,801.0 11,584.0 Accumulated depreciation (7,111.4 ) (6,664.5 ) Property, plant and equipment, net $ 5,689.6 $ 4,919.5 |
Accrued Liabilities | Jul 1, 2018 Oct 1, 2017 Accrued compensation and related costs $ 637.2 $ 524.5 Accrued occupancy costs 168.9 151.3 Accrued taxes 280.1 226.6 Accrued dividends payable 491.9 429.5 Accrued capital and other operating expenditures 742.6 602.6 Total accrued liabilities $ 2,320.7 $ 1,934.5 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
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) : Jul 1, 2018 Oct 1, 2017 Stated Interest Rate Effective Interest Rate (1) Issuance Amount Estimated Fair Value Amount Estimated Fair Value 2018 notes $ 350.0 $ 349 $ 350.0 $ 352 2.000 % 2.012 % 2020 notes (2) 500.0 489 — — 2.200 % 2.228 % 2021 notes 500.0 486 500.0 501 2.100 % 2.293 % 2021 notes 250.0 243 250.0 250 2.100 % 1.600 % 2022 notes 500.0 486 500.0 508 2.700 % 2.819 % 2023 notes (5) 750.0 758 750.0 806 3.850 % 2.859 % 2023 notes (3) 1,000.0 981 — — 3.100 % 3.107 % 2024 notes (4) 768.0 767 755.3 760 0.372 % 0.462 % 2026 notes 500.0 448 500.0 481 2.450 % 2.511 % 2028 notes (3) 600.0 577 — — 3.500 % 3.529 % 2045 notes 350.0 336 350.0 381 4.300 % 4.348 % 2047 notes (2) 500.0 434 — — 3.750 % 3.765 % Total 6,568.0 6,354 3,955.3 4,039 Aggregate debt issuance costs and unamortized premium, net (35.4 ) (17.5 ) Hedge accounting fair value adjustment (5) (33.7 ) (5.2 ) Total $ 6,498.9 $ 3,932.6 (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) Issued in November 2017 . (3) Issued in February 2018 . |
Long-Term Debt Maturities | The following table summarizes our long-term debt maturities as of July 1, 2018 by fiscal year ( in millions ): Fiscal Year Total 2019 $ 350.0 2020 — 2021 1,250.0 2022 500.0 2023 1,000.0 Thereafter 3,468.0 Total $ 6,568.0 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Changes in total equity | Changes in total equity (in millions) : Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Attributable to Starbucks Noncontrolling interests Total Equity Attributable to Starbucks Noncontrolling interest Total Equity Beginning balance of total equity $ 5,450.1 $ 6.9 $ 5,457.0 $ 5,884.0 $ 6.7 $ 5,890.7 Net earnings including noncontrolling interests 3,762.8 (0.9 ) 3,761.9 2,096.1 (0.6 ) 2,095.5 Translation adjustment and other, net of reclassifications and tax (49.9 ) — (49.9 ) (76.1 ) — (76.1 ) Unrealized gains/(losses), net of reclassifications and tax 2.8 — 2.8 (0.6 ) — (0.6 ) Other comprehensive income/(loss) (47.1 ) — (47.1 ) (76.7 ) — (76.7 ) Stock-based compensation expense 187.4 — 187.4 150.1 — 150.1 Exercise of stock options/vesting of RSUs 47.6 — 47.6 108.0 — 108.0 Sale of common stock 23.9 — 23.9 21.6 — 21.6 Repurchase of common stock (4,111.5 ) — (4,111.5 ) (1,254.1 ) — (1,254.1 ) Cash dividends declared (1,322.5 ) — (1,322.5 ) (1,085.6 ) — (1,085.6 ) Ending balance of total equity $ 3,990.7 $ 6.0 $ 3,996.7 $ 5,843.4 $ 6.1 $ 5,849.5 |
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 July 1, 2018 Net gains/(losses) in AOCI, beginning of period $ (5.0 ) $ (10.7 ) $ (19.1 ) $ 67.7 $ 32.9 Net gains/(losses) recognized in OCI before reclassifications (0.4 ) 35.6 24.1 (280.6 ) (221.3 ) Net (gains)/losses reclassified from AOCI to earnings 0.6 (14.9 ) — — (14.3 ) Other comprehensive income/(loss) attributable to Starbucks 0.2 20.7 24.1 (280.6 ) (235.6 ) Net gains/(losses) in AOCI, end of period $ (4.8 ) $ 10.0 $ 5.0 $ (212.9 ) $ (202.7 ) July 2, 2017 Net gains/(losses) in AOCI, beginning of period $ (5.3 ) $ 21.6 $ 11.3 $ (234.0 ) $ (206.4 ) Net gains/(losses) recognized in OCI before reclassifications 1.0 (12.7 ) 1.7 36.2 26.2 Net (gains)/losses reclassified from AOCI to earnings 0.8 (5.7 ) — — (4.9 ) Other comprehensive income/(loss) attributable to Starbucks 1.8 (18.4 ) 1.7 36.2 21.3 Net gains/(losses) in AOCI, end of period $ (3.5 ) $ 3.2 $ 13.0 $ (197.8 ) $ (185.1 ) Three Quarters Ended Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total July 1, 2018 Net gains/(losses) in AOCI, beginning of period $ (2.5 ) $ (4.1 ) $ 14.0 $ (163.0 ) $ (155.6 ) Net gains/(losses) recognized in OCI before reclassifications (4.7 ) (0.6 ) (9.0 ) (66.8 ) (81.1 ) Net (gains)/losses reclassified from AOCI to earnings 2.4 14.7 — 16.9 34.0 Other comprehensive income/(loss) attributable to Starbucks (2.3 ) 14.1 (9.0 ) (49.9 ) (47.1 ) Net gains/(losses) in AOCI, end of period $ (4.8 ) $ 10.0 $ 5.0 $ (212.9 ) $ (202.7 ) July 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 (6.9 ) 48.5 11.7 (76.1 ) (22.8 ) Net (gains)/losses reclassified from AOCI to earnings 2.3 (56.2 ) — — (53.9 ) Other comprehensive income/(loss) attributable to Starbucks (4.6 ) (7.7 ) 11.7 (76.1 ) (76.7 ) Net gains/(losses) in AOCI, end of period $ (3.5 ) $ 3.2 $ 13.0 $ (197.8 ) $ (185.1 ) |
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 Amounts Reclassified from AOCI Affected Line Item in Jul 1, 2018 Jul 2, 2017 Gains/(losses) on available-for-sale securities $ (0.9 ) $ (1.2 ) Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 1.2 1.2 Interest expense Cross-currency swaps 18.5 1.5 Interest income and other, net Foreign currency hedges 0.5 1.2 Revenues Foreign currency/coffee hedges (1.8 ) 3.7 Cost of sales including occupancy costs 17.5 6.4 Total before tax (3.2 ) (1.5 ) Tax benefit $ 14.3 $ 4.9 Net of tax Three Quarters Ended AOCI Amounts Reclassified from AOCI Affected Line Item in Jul 1, 2018 Jul 2, 2017 Gains/(losses) on available-for-sale securities $ (3.3 ) $ (3.2 ) Interest income and other, net Gains/(losses) on cash flow hedges Interest rate hedges 3.6 3.6 Interest expense Cross-currency swaps (8.1 ) 55.6 Interest income and other, net Foreign currency hedges (1.3 ) 3.7 Revenues Foreign currency/coffee hedges (11.7 ) 8.2 Cost of sales including occupancy costs Gains/(losses) on net investment hedges — — Interest income and other, net Translation adjustment Brazil (24.1 ) — Net gain resulting from divestiture of certain operations East China joint venture 7.2 — Gain resulting from acquisition of joint venture Taiwan joint venture 1.4 — Net gain resulting from divestiture of certain operations Other (1.7 ) — Interest income and other, net (38.0 ) 67.9 Total before tax 4.0 (14.0 ) Tax (expense)/benefit $ (34.0 ) $ 53.9 Net of tax |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense Recognized in Consolidated Statements of Earnings | Stock-based compensation expense recognized in the consolidated statements of earnings (in millions) : Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Options $ 2.0 $ 10.1 $ 23.2 $ 34.1 Restricted Stock Units (“RSUs”) 66.4 33.8 161.7 114.7 Total stock-based compensation expense $ 68.4 $ 43.9 $ 184.9 $ 148.8 |
Stock Option and RSU Transactions | Stock option and RSU transactions from October 1, 2017 through July 1, 2018 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, October 1, 2017 31.4 7.6 Granted 3.9 9.1 Options exercised/RSUs vested (5.2 ) (3.1 ) Forfeited/expired (1.4 ) (1.8 ) Options outstanding/Nonvested RSUs, July 1, 2018 28.7 11.8 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of July 1, 2018 $ 24.2 $ 282.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Net Earnings Per Common Share (EPS) - Basic and Diluted | Calculation of net earnings per common share (“EPS”) — basic and diluted ( in millions, except EPS ): Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Net earnings attributable to Starbucks $ 852.5 $ 691.6 $ 3,762.8 $ 2,096.1 Weighted average common shares outstanding (for basic calculation) 1,377.1 1,447.7 1,397.7 1,452.8 Dilutive effect of outstanding common stock options and RSUs 11.4 11.7 12.2 12.1 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,388.5 1,459.4 1,409.9 1,464.9 EPS — basic $ 0.62 $ 0.48 $ 2.69 $ 1.44 EPS — diluted $ 0.61 $ 0.47 $ 2.67 $ 1.43 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jul. 01, 2018 | |
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/ EMEA Channel All Other Segments Segment July 1, 2018 Total net revenues $ 4,230.6 $ 1,229.0 $ 275.4 $ 509.0 $ 66.3 $ 6,310.3 Depreciation and amortization expenses 159.3 120.7 8.0 0.2 1.5 289.7 Income from equity investees — 23.5 — 47.9 — 71.4 Operating income/(loss) 908.7 234.1 34.9 212.8 (9.8 ) 1,380.7 July 2, 2017 Total net revenues $ 3,991.9 $ 840.6 $ 249.9 $ 478.7 $ 100.4 $ 5,661.5 Depreciation and amortization expenses 152.8 51.0 7.7 0.5 3.0 215.0 Income from equity investees — 51.8 — 49.2 — 101.0 Operating income/(loss) 974.8 223.8 9.8 210.2 (112.3 ) 1,306.3 |
Reconciliation Of Total Segment Operating Income To Consolidated Earnings Before Income Taxes | Reconciliation of total segment operating income to consolidated earnings before income taxes (in millions) : Quarter Ended Three Quarters Ended Jul 1, 2018 Jul 2, 2017 Jul 1, 2018 Jul 2, 2017 Total segment operating income $ 1,380.7 $ 1,306.3 $ 3,911.4 $ 3,922.7 Unallocated corporate operating expenses (342.5 ) (262.1 ) (984.5 ) (810.6 ) Consolidated operating income 1,038.2 1,044.2 2,926.9 3,112.1 Gain resulting from acquisition of joint venture 2.5 — 1,376.4 — Net gain resulting from divestiture of certain operations — — 496.3 9.6 Interest income and other, net 31.5 31.7 155.2 114.1 Interest expense (45.4 ) (23.5 ) (106.4 ) (70.2 ) Earnings before income taxes $ 1,026.8 $ 1,052.4 $ 4,848.4 $ 3,165.6 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Debt Instrument [Line Items] | ||||
Earnings per share - basic | $ 0.62 | $ 0.48 | $ 2.69 | $ 1.44 |
Accounting Standards Update 2016-09 [Member] | ||||
Debt Instrument [Line Items] | ||||
Earnings per share - basic | $ 0 | $ 0 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies Goodwill (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 3,647.6 | $ 1,539.2 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income Tax Expense (Benefit) | $ 174.8 | $ 361.1 | $ 1,086.5 | $ 1,070.1 |
Earnings per share - diluted | $ 0.61 | $ 0.47 | $ 2.67 | $ 1.43 |
Earnings Per Share, Basic | $ 0.62 | $ 0.48 | $ 2.69 | $ 1.44 |
Accounting Standards Update 2016-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income Tax Expense (Benefit) | $ 6.1 | $ 50.5 | ||
Earnings per share - diluted | $ 0.04 | $ 40,000 | ||
Excess tax benefit on share-based awards | $ 69.4 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 6.1 | $ 50.5 | ||
Earnings Per Share, Basic | $ 0 | $ 0 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) | Dec. 31, 2017USD ($) | Jul. 01, 2018USD ($)store | Apr. 01, 2018USD ($) | Oct. 01, 2017USD ($) | Jul. 02, 2017USD ($) | Jul. 01, 2018USD ($)store | Jul. 02, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 58,600,000 | $ 14,300,000 | $ 131,400,000 | $ 42,800,000 | |||
Gain resulting from acquisition of joint venture | 2,500,000 | 0 | 1,376,400,000 | 0 | |||
Goodwill | 3,647,600,000 | $ 1,539,200,000 | 3,647,600,000 | ||||
Brazil Retail Operations [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Sale of Ownership Interest in Retail Business | $ 48,200,000 | ||||||
Gain/(loss) resulting from divestiture | 8.5 | ||||||
Taiwan JV [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Sale of Ownership Interest in Retail Business | $ 181,200,000 | ||||||
Gain/(loss) resulting from divestiture | 156.6 | ||||||
East China JV [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Pro Forma Revenue | 6,310,300 | 5,896,500 | 18,686,800 | 17,360,600 | |||
Business Acquisition, Effective Date of Acquisition | Dec. 31, 2017 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 44,300,000 | 88,800,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 42,700,000 | 42,700,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 170,700,000 | 170,700,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 170,700,000 | 170,700,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Four | 170,700,000 | 170,700,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | 163,800,000 | 163,800,000 | |||||
Goodwill, Foreign Currency Translation Gain (Loss) | 37,900,000 | ||||||
Preexisting ownership percentage in equity method investment | 50.00% | ||||||
Amount paid for interest acquired | $ 1,400,000,000 | ||||||
Amount of payable settled | $ 1,440,800,000 | ||||||
Gain resulting from acquisition of joint venture | 1,400,000,000 | 0 | 1,400,000,000 | ||||
Acquisition-related costs, including integration costs | 18,300,000 | 30,700,000 | |||||
Business Combination, Acquisition Related Costs | $ 3,500,000 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 1,440,800,000 | $ 1,400,000,000 | |||||
Business Combination, Separately Recognized Transactions, Liabilities Recognized | $ 90,500,000 | ||||||
Number of stores | store | 1,400 | 1,400 | |||||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination | 2,972,100,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 129,500,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 14,300,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 16,100,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 20,600,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 254,100,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 44,600,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 818,000,000 | ||||||
Goodwill | 2,164,100,000 | $ 2,126,200,000 | $ 2,126,200,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 3,461,300,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 34,700,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 187,700,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 21,700,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 245,100,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 489,200,000 | ||||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 69,800,000 | 69,800,000 | |||||
Operating Leases, Future Minimum Payments, Due in Rolling Year Two | 60,800,000 | 60,800,000 | |||||
Operating Leases, Future Minimum Payments, Due in Rolling Year Three | 52,700,000 | 52,700,000 | |||||
Operating Leases, Future Minimum Payments, Due in Rolling Year Four | 45,100,000 | 45,100,000 | |||||
Operating Leases, Future Minimum Payments, Due in Rolling Year Five | 35,900,000 | 35,900,000 | |||||
Operating Leases, Future Minimum Payments, Due Thereafter | 78,300,000 | 78,300,000 | |||||
Operating Leases, Future Minimum Payments Due | 342,600,000 | 342,600,000 | |||||
Business Acquisition, Pro Forma Net Income (Loss) | 802,900 | $ 773,100 | 2,494,500 | $ 3,331,600 | |||
East China revenue included in consolidated statements of earnings | 301,000,000 | 602,600,000 | |||||
East China net earnings included in consolidated statements of earnings | $ 19,200,000 | $ 45,500,000 | |||||
Tazo business [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Gain/(loss) resulting from divestiture | 347.9 | ||||||
Proceeds from Divestiture of Businesses | $ 383,800,000 | ||||||
Taiwan JV [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Preexisting ownership percentage in equity method investment | 50.00% | ||||||
Singapore Retail Operations [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Sale of Ownership Interest in Retail Business | $ 119,900,000 | ||||||
Gain/(loss) resulting from divestiture | 83.9 | ||||||
Acquired and reacquired rights | East China JV [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 798,000,000 |
Acquisitions and Divestitures D
Acquisitions and Divestitures Definite-lived intangible assets acquired (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,218 | $ 409 |
Accumulated amortization | 323.9 | 194.8 |
Net carrying amount | 894.1 | 214.2 |
Acquired and reacquired rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,117.3 | 328.8 |
Accumulated amortization | 275.8 | 154.2 |
Net carrying amount | $ 841.5 | $ 174.6 |
Derivative Financial Instrume36
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 | |
Jul. 01, 2018 | Oct. 01, 2017 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 16.2 | $ 17.6 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 3.6 | |
Outstanding Contract Remaining Maturity (Months) | 90 months | |
Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (12.7) | (6) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 77 months | |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 6.6 | (9.1) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 3.9 | |
Outstanding Contract Remaining Maturity (Months) | 36 months | |
Cash Flow Hedging [Member] | Coffee Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (0.1) | (6.6) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ (0.1) | |
Outstanding Contract Remaining Maturity (Months) | 8 months | |
Net Investment Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 16 | 16.2 |
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 | $ (11) | $ (2.2) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 69 months |
Derivative Financial Instrume37
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Designated as Hedging Instruments Recognized in OCI and Reclassifications from AOCI to Earnings) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | $ 46,000,000 | $ (15,200,000) | $ 600,000 | $ 64,800,000 |
Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 32,400,000 | 2,700,000 | (11,800,000) | 18,600,000 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 4,700,000 | 0 | 1,500,000 | 0 |
Gains/(Losses) Reclassified from AOCI to Earnings | 1,200,000 | 1,200,000 | 3,600,000 | 3,600,000 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 19,700,000 | 5,900,000 | (16,400,000) | 58,500,000 |
Gains/(Losses) Reclassified from AOCI to Earnings | 18,500,000 | 1,600,000 | (8,100,000) | 55,800,000 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 21,700,000 | (10,600,000) | 15,600,000 | 15,900,000 |
Gains/(Losses) Reclassified from AOCI to Earnings | (800,000) | 4,200,000 | (5,700,000) | 12,200,000 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Coffee Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (100,000) | (10,700,000) | (100,000) | (9,800,000) |
Gains/(Losses) Reclassified from AOCI to Earnings | (500,000) | 700,000 | (7,300,000) | (300,000) |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 0 | 2,700,000 | (100,000) | 28,200,000 |
Gains/(Losses) Reclassified from AOCI to Earnings | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ForeignExchangeYenDebt [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 32,400,000 | 0 | (11,700,000) | (9,600,000) |
Gains/(Losses) Reclassified from AOCI to Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume38
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | $ (1.3) | $ 6.6 | $ (2.4) | $ 10 |
Dairy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | 0.1 | (0.6) | (1.9) | 2.2 |
Diesel and Other Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | 2 | (1.4) | 2.9 | (0.9) |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (5.1) | $ (4.8) | $ (28.5) | $ (4.8) |
Derivative and Financial Instru
Derivative and Financial Instruments (Notional Amounts of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | $ 1,250 | $ 750 |
Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 464 | 514 |
Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 1,043 | 901 |
Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 0 | |
Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | 34 | 14 |
Diesel and Other Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amounts of outstanding derivative contracts | $ 17 | $ 41 |
Derivative Financial Instrume40
Derivative Financial Instruments Derivative Financial Instruments (Fair Value of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | $ 1.5 | $ 0 |
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instrument [Member] | Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 12.4 |
Derivative Liabilities | 14 | 9.8 |
Designated as Hedging Instrument [Member] | Foreign Currency - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 12.9 | 7.7 |
Derivative Liabilities | 3.7 | 20.8 |
Designated as Hedging Instrument [Member] | Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0.1 | 0 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0.3 |
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 34.4 | 3.8 |
Not Designated as Hedging Instrument [Member] | Foreign Currency - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 15.9 | 15.8 |
Derivative Liabilities | 7.2 | 1.4 |
Not Designated as Hedging Instrument [Member] | Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0.2 | 0 |
Derivative Liabilities | 0.9 | 2.4 |
Not Designated as Hedging Instrument [Member] | Diesel and Other Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 1.5 | 1.6 |
Derivative Liabilities | $ 0.3 | $ 0.3 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Oct. 01, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment | $ 28.5 | $ 87.2 | |||
Assets: | |||||
Total short-term investments | 84.5 | $ 228.6 | |||
Available-for-sale securities | 261.4 | 542.3 | |||
Total Assets | 2,270 | 3,271 | |||
Liabilities: | |||||
Total Liabilities | 60.6 | 38.5 | |||
Goodwill | 3,647.6 | 1,539.2 | |||
Intangible Assets, Net (Excluding Goodwill) | 1,122.9 | 441.4 | |||
Cash and Cash Equivalents [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 1,892.1 | 2,462.3 | |||
Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 13.2 | 151.7 | |||
Trading securities | 71.3 | 76.9 | |||
Total short-term investments | 84.5 | 228.6 | |||
Prepaid Expenses and Other Current Assets [Member] | |||||
Assets: | |||||
Derivative assets | 25.1 | 13.4 | |||
Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 261.4 | 542.3 | |||
Other Long-Term Assets [Member] | |||||
Assets: | |||||
Derivative assets | 6.9 | 24.4 | |||
Accrued Liabilities [Member] | |||||
Liabilities: | |||||
Derivative liabilities | 7 | 16.4 | |||
Other Long-Term Liabilities [Member] | |||||
Liabilities: | |||||
Derivative liabilities | 53.6 | 22.1 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Assets: | |||||
Total Assets | 2,067.8 | 2,748.1 | |||
Liabilities: | |||||
Total Liabilities | 1.2 | 2.5 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 1,892.1 | 2,462.3 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 81.4 | |||
Trading securities | 71.3 | 76.9 | |||
Total short-term investments | 71.3 | 158.3 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Assets: | |||||
Derivative assets | 0.8 | 0.1 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 103.6 | 127.4 | |||
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 | 1.2 | 2.5 | |||
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 | 196.3 | 517 | |||
Liabilities: | |||||
Total Liabilities | 59.4 | 36 | |||
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 | 13.2 | 70.3 | |||
Trading securities | 0 | 0 | |||
Total short-term investments | 13.2 | 70.3 | |||
Significant Other Observable Inputs (Level 2) [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Assets: | |||||
Derivative assets | 24.3 | 13.3 | |||
Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 151.9 | 409 | |||
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Assets [Member] | |||||
Assets: | |||||
Derivative assets | 6.9 | 24.4 | |||
Significant Other Observable Inputs (Level 2) [Member] | Accrued Liabilities [Member] | |||||
Liabilities: | |||||
Derivative liabilities | 5.8 | 13.9 | |||
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Liabilities [Member] | |||||
Liabilities: | |||||
Derivative liabilities | 53.6 | 22.1 | |||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Assets: | |||||
Total Assets | 5.9 | 5.9 | |||
Liabilities: | |||||
Total Liabilities | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
Trading securities | 0 | 0 | |||
Total short-term investments | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Assets: | |||||
Derivative assets | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 5.9 | 5.9 | |||
Significant Unobservable Inputs (Level 3) [Member] | Other Long-Term Assets [Member] | |||||
Assets: | |||||
Derivative assets | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Accrued Liabilities [Member] | |||||
Liabilities: | |||||
Derivative liabilities | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Other Long-Term Liabilities [Member] | |||||
Liabilities: | |||||
Derivative liabilities | 0 | 0 | |||
Agency Obligations [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 7.5 | ||||
Agency Obligations [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 5.9 | 21.8 | |||
Agency Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Agency Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
Agency Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 7.5 | ||||
Agency Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 5.9 | 21.8 | |||
Agency Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Agency Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
Commercial Paper [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 2 | ||||
Commercial Paper [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 2 | ||||
Commercial Paper [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Corporate Debt Securities [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 11.8 | 49.4 | |||
Corporate Debt Securities [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 108.9 | 207.4 | |||
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 | 11.8 | 49.4 | |||
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 108.9 | 207.4 | |||
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 | 7.1 | ||||
Foreign Government Obligations [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 3.6 | 17.1 | |||
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 | ||||
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 | 7.1 | ||||
Foreign Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 3.6 | 17.1 | |||
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 | 81.4 | ||||
U.S. Government Treasury Securities [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 103.6 | 127.4 | |||
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 | 81.4 | ||||
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 | 103.6 | 127.4 | |||
U.S. Government Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
U.S. Government Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
U.S. Government Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
U.S. Government Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
State and Local Government Obligations [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 2 | ||||
State and Local Government Obligations [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 4.8 | 7 | |||
State and Local Government Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
State and Local Government Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
State and Local Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 2 | ||||
State and Local Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 4.8 | 7 | |||
State and Local Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
State and Local Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
Certificates of Deposit [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 2.3 | ||||
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 | ||||
Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 2.3 | ||||
Certificates of Deposit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Auction Rate Securities [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 5.9 | 5.9 | |||
Auction Rate Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
Auction Rate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
Auction Rate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 5.9 | 5.9 | |||
Mortgage and Other Asset-backed Securities [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 1.4 | ||||
Mortgage and Other Asset-backed Securities [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 28.7 | 155.7 | |||
Mortgage and Other Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Mortgage and Other Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | 0 | |||
Mortgage and Other Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 1.4 | ||||
Mortgage and Other Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 28.7 | 155.7 | |||
Mortgage and Other Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Mortgage and Other Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | $ 0 | |||
Starbucks Coffee Switzerland [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment | $ 28.5 | $ 17.9 | |||
Liabilities: | |||||
Goodwill | $ 8.9 | ||||
Teavana [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment | 69.3 | ||||
Liabilities: | |||||
Goodwill | 398.3 | 398.3 | |||
Intangible Assets, Net (Excluding Goodwill) | 117.2 | $ 117.2 | |||
Asset Impairment Charges | $ 33 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 01, 2018 | Oct. 01, 2017 | Jul. 02, 2017 | |
Inventory [Line Items] | |||
Roasted Coffee Inventory | $ 267.6 | $ 301.1 | $ 258.4 |
Price-to-be-fixed Contract [Member] | |||
Inventory [Line Items] | |||
Amount of coffee committed to be purchased | 343 | ||
Fixed-price Contract [Member] | |||
Inventory [Line Items] | |||
Amount of coffee committed to be purchased | 843 | ||
Coffee Contracts [Member] | |||
Inventory [Line Items] | |||
Price-to-be-fixed contracts fixed through use of futures contracts | 0 | ||
Designated as Hedging Instrument [Member] | Coffee Contracts [Member] | |||
Inventory [Line Items] | |||
Derivative Assets | 0 | $ 0 | |
Price-to-be-fixed contracts fixed through use of futures contracts | $ 4 |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 | Jul. 02, 2017 |
Inventory Disclosure [Abstract] | |||
Unroasted coffee | $ 624.5 | $ 541 | $ 614.7 |
Roasted Coffee Inventory | 267.6 | 301.1 | 258.4 |
Other merchandise held for sale | 248.1 | 301.1 | 261.3 |
Packaging and other supplies | 247.2 | 220.8 | 222.9 |
Total | $ 1,387.4 | $ 1,364 | $ 1,357.3 |
Supplemental Balance Sheet In44
Supplemental Balance Sheet Information (Property, Plant And Equipment, net) (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 12,801 | $ 11,584 |
Accumulated depreciation | (7,111.4) | (6,664.5) |
Property, plant and equipment, net | 5,689.6 | 4,919.5 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46.8 | 46.9 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 549.7 | 481.7 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,103.5 | 6,401 |
Store Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,314.4 | 2,110.7 |
Roasting Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 629.9 | 619.8 |
Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,634.9 | 1,514.1 |
Work in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 521.8 | $ 409.8 |
Supplemental Balance Sheet In45
Supplemental Balance Sheet Information (Accrued Liabilities) (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and related costs | $ 637.2 | $ 524.5 |
Accrued occupancy costs | 168.9 | 151.3 |
Accrued taxes | 280.1 | 226.6 |
Accrued dividends payable | 491.9 | 429.5 |
Accrued capital and other operating expenditures | 742.6 | 602.6 |
Total accrued liabilities | $ 2,320.7 | $ 1,934.5 |
Supplemental Balance Sheet In46
Supplemental Balance Sheet Information Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Income tax receivable | $ 956.3 | $ 68 |
Other prepaid expenses and current assets | 408.3 | 290.1 |
Total prepaid expenses and current assets | $ 1,364.6 | $ 358.1 |
Supplemental Balance Sheet In47
Supplemental Balance Sheet Information Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred Income Taxes and Other Tax Liabilities, Noncurrent | $ 362.6 | $ 6.3 |
Other long-term liabilities | 1,122.1 | 749 |
Deferred Tax and Other Liabilities, Noncurrent | $ 1,484.7 | $ 755.3 |
Other Intangible Assets and Goo
Other Intangible Assets and Goodwill Other Intangible Assets and Goodwill (Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 228.8 | $ 227.2 |
Trade Names, Trademarks and Patents [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 213.7 | 212.1 |
Other finite-lived intangible assets [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 15.1 | $ 15.1 |
Other Intangible Assets and G49
Other Intangible Assets and Goodwill Other Intangible Assets and Goodwill (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Oct. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $ 1,218 | $ 1,218 | $ 409 | ||
Accumulated amortization | (323.9) | (323.9) | (194.8) | ||
Net carrying amount | 894.1 | 894.1 | 214.2 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 58.6 | $ 14.3 | 131.4 | $ 42.8 | |
Acquired and reacquired rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 1,117.3 | 1,117.3 | 328.8 | ||
Accumulated amortization | (275.8) | (275.8) | (154.2) | ||
Net carrying amount | 841.5 | 841.5 | 174.6 | ||
Acquired trade secrets and processes [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 27.6 | 27.6 | 27.6 | ||
Accumulated amortization | (15.8) | (15.8) | (13.7) | ||
Net carrying amount | 11.8 | 11.8 | 13.9 | ||
Trade Names, Trademarks and Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 32 | 32 | 31.5 | ||
Accumulated amortization | (19) | (19) | (17.6) | ||
Net carrying amount | 13 | 13 | 13.9 | ||
Licensing Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 14.7 | 14.7 | 14.4 | ||
Accumulated amortization | (4.9) | (4.9) | (3.8) | ||
Net carrying amount | 9.8 | 9.8 | 10.6 | ||
Other finite-lived intangible assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 26.4 | 26.4 | 6.7 | ||
Accumulated amortization | (8.4) | (8.4) | (5.5) | ||
Net carrying amount | $ 18 | $ 18 | $ 1.2 |
Other Intangible Assets and G50
Other Intangible Assets and Goodwill Other Intangible Assets and Goodwill (Estimated Future Amortization Expense) (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Oct. 01, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 56.7 | |
2,019 | 224.8 | |
2,020 | 225.7 | |
2,021 | 202.3 | |
2,022 | 169.2 | |
Thereafter | 15.4 | |
Net carrying amount | $ 894.1 | $ 214.2 |
Other Intangible Assets and G51
Other Intangible Assets and Goodwill Other Intangible Assets and Goodwill (Changes in Carrying Amount of Goodwill By Reportable Operating Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Goodwill [Line Items] | |||
Goodwill, beginning balance | $ 1,539.2 | ||
Acquisition/(divestiture) | 2,162.6 | ||
Impairment | (28.5) | $ (87.2) | |
Other | (25.7) | ||
Goodwill, ending balance | 3,647.6 | ||
Teavana [Member] | |||
Goodwill [Line Items] | |||
Impairment | $ (69.3) | ||
Goodwill, ending balance | $ 398.3 | $ 398.3 | |
Americas Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 213.1 | ||
Acquisition/(divestiture) | 0 | ||
Impairment | 0 | ||
Other | 285.3 | ||
Goodwill, ending balance | 498.4 | ||
China / Asia Pacific Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 850.2 | ||
Acquisition/(divestiture) | 2,164.1 | ||
Impairment | 0 | ||
Other | 69.9 | ||
Goodwill, ending balance | 3,084.2 | ||
EMEA Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 37.2 | ||
Acquisition/(divestiture) | 0 | ||
Impairment | 28.5 | ||
Other | 11.5 | ||
Goodwill, ending balance | 20.2 | ||
Channel Development [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 23.8 | ||
Acquisition/(divestiture) | (1.5) | ||
Impairment | 0 | ||
Other | 6 | ||
Goodwill, ending balance | 28.3 | ||
All Other Segments [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 414.9 | ||
Acquisition/(divestiture) | 0 | ||
Impairment | 0 | ||
Other | (398.4) | ||
Goodwill, ending balance | $ 16.5 |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2018 | Nov. 30, 2017 | Jul. 01, 2018 | Oct. 01, 2017 | |
Debt Instrument [Line Items] | ||||
Long-term debt covenant compliance | The indentures under which the above notes were issued also require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of July 1, 2018, we were in compliance with all applicable covenants. | |||
Two Point Two Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 2.20% | |||
Debt Instrument, Face Amount | $ 500 | $ 0 | ||
Two Point Two Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.75% | |||
Debt Instrument, Face Amount | $ 500 | 0 | ||
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 0.372% | |||
Debt Instrument, Face Amount | $ 768 | 755.3 | ||
Three Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.50% | |||
Debt Instrument, Face Amount | $ 600 | $ 0 | ||
Senior Notes [Member] | Two Point Two Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Nov. 22, 2017 | |||
Senior Notes [Member] | Two Point Two Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Nov. 22, 2017 | |||
Senior Notes [Member] | Three Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Feb. 28, 2018 |
Debt (Components of Long-Term D
Debt (Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values) (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Feb. 28, 2018 | Nov. 30, 2017 | Jul. 01, 2018 | Oct. 01, 2017 | |
Debt Instrument [Line Items] | ||||
Total | $ 6,568 | $ 3,955.3 | ||
Total, Estimated Fair Value | 6,354 | 4,039 | ||
Aggregate debt issuance costs and unamortized premium | (35.4) | (17.5) | ||
Hedging Liabilities, Noncurrent | (33.7) | |||
Total, Carrying Value, net of aggregate unamortized discount | 6,498.9 | 3,932.6 | ||
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 | 2.012% | |||
Two Point Two Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | 0 | ||
Stated Interest Rate | 2.20% | |||
Effective Interest Rate | 2.228% | |||
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 | 2.511% | |||
Three Point Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 600 | 0 | ||
Stated Interest Rate | 3.50% | |||
Effective Interest Rate | 3.529% | |||
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 | 2.293% | |||
Effective Interest Rate for Reopening of Previous Issuance | 1.60% | |||
Two Point Seven Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | 500 | ||
Stated Interest Rate | 2.70% | |||
Effective Interest Rate | 2.819% | |||
Three Point Eight Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 750 | 750 | ||
Stated Interest Rate | 3.85% | |||
Effective Interest Rate | 2.859% | |||
Three Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,000 | 0 | ||
Stated Interest Rate | 3.10% | |||
Effective Interest Rate | 3.107% | |||
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 768 | 755.3 | ||
Stated Interest Rate | 0.372% | |||
Effective Interest Rate | 0.462% | |||
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 | 4.348% | |||
Three Point Seven Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | 0 | ||
Stated Interest Rate | 3.75% | |||
Effective Interest Rate | 3.765% | |||
Fair Value, Inputs, Level 2 [Member] | Two Point Zero Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | $ 349 | 352 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Two Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 489 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Four Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 448 | 481 | ||
Fair Value, Inputs, Level 2 [Member] | Three Point Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 577 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 486 | 501 | ||
Estimated Fair Value from Reopening of Previous Issuance | 243 | 250 | ||
Fair Value, Inputs, Level 2 [Member] | Two Point Seven Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 486 | 508 | ||
Fair Value, Inputs, Level 2 [Member] | Three Point Eight Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 758 | 806 | ||
Fair Value, Inputs, Level 2 [Member] | Three Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 981 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 767 | 760 | ||
Fair Value, Inputs, Level 2 [Member] | Four Point Three Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 336 | 381 | ||
Fair Value, Inputs, Level 2 [Member] | Three Point Seven Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | $ 434 | $ 0 | ||
Senior Notes [Member] | Two Point Two Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Nov. 22, 2017 | |||
Senior Notes [Member] | Three Point Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Feb. 28, 2018 | |||
Senior Notes [Member] | Three Point One Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Feb. 28, 2018 | |||
Senior Notes [Member] | Three Point Seven Five Percentage Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Nov. 22, 2017 |
Debt Debt (Summary of long-term
Debt Debt (Summary of long-term debt maturities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 01, 2018 | Oct. 01, 2017 | |
Short-term Debt [Line Items] | ||
Maximum allowable amount under Commercial Paper Program | $ 3,000 | |
2,019 | 350 | |
2,020 | 0 | |
2,021 | 1,250 | |
2,022 | 500 | |
2,023 | 1,000 | |
Thereafter | 3,468 | |
Total | 6,568 | $ 3,955.3 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding commercial paper | $ 300 | |
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 | 9 Months Ended | |||
Jul. 01, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Apr. 26, 2018 | Oct. 01, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||
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 | 73,000,000 | 22,400,000 | |||
Total cost of common stock repurchased | $ 4,111.5 | $ 1,254.1 | |||
Shares available for repurchase | 107,300,000 | 107,300,000 | |||
Cash dividend declared to shareholders | $ 0.36 | $ 0.36 | |||
Stock Repurchase Program, Authorized Amount | $ 100 | ||||
Dividends payable, payment date | Aug. 24, 2018 | ||||
Dividends payable, record date | Aug. 9, 2018 |
Equity (Changes In Total Equity
Equity (Changes In Total Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Beginning balance of total equity | $ 5,457 | $ 5,890.7 | ||
Net earnings including noncontrolling interests | $ 852 | $ 691.3 | 3,761.9 | 2,095.5 |
Translation adjustment and other, net of reclassifications and tax | (49.9) | (76.1) | ||
Unrealized gains/(losses), net of reclassifications and tax | 2.8 | (0.6) | ||
Other comprehensive income/(loss) | (235.6) | 21.3 | (47.1) | (76.7) |
Stock-based compensation expense | 187.4 | 150.1 | ||
Exercise of stock options/vesting of RSUs | 47.6 | 108 | ||
Sale of common stock | 23.9 | 21.6 | ||
Repurchase of common stock | (4,111.5) | (1,254.1) | ||
Cash dividends declared | (1,322.5) | (1,085.6) | ||
Ending balance of total equity | 3,996.7 | 5,849.5 | 3,996.7 | 5,849.5 |
Parent [Member] | ||||
Beginning balance of total equity | 5,450.1 | 5,884 | ||
Net earnings including noncontrolling interests | 3,762.8 | 2,096.1 | ||
Translation adjustment and other, net of reclassifications and tax | (49.9) | (76.1) | ||
Unrealized gains/(losses), net of reclassifications and tax | 2.8 | (0.6) | ||
Other comprehensive income/(loss) | (47.1) | (76.7) | ||
Stock-based compensation expense | 187.4 | 150.1 | ||
Exercise of stock options/vesting of RSUs | 47.6 | 108 | ||
Sale of common stock | 23.9 | 21.6 | ||
Repurchase of common stock | (4,111.5) | (1,254.1) | ||
Cash dividends declared | (1,322.5) | (1,085.6) | ||
Ending balance of total equity | 3,990.7 | 5,843.4 | 3,990.7 | 5,843.4 |
Noncontrolling Interest [Member] | ||||
Beginning balance of total equity | 6.9 | 6.7 | ||
Net earnings including noncontrolling interests | (0.9) | (0.6) | ||
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 | $ 6.1 | $ 6 | $ 6.1 |
Equity (Components Of Accumulat
Equity (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Apr. 01, 2018 | Oct. 01, 2017 | Apr. 02, 2017 | Oct. 02, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 3,996.7 | $ 5,849.5 | $ 3,996.7 | $ 5,849.5 | $ 5,457 | $ 5,890.7 | ||
Net gains/(losses) in AOCI, beginning of period | (155.6) | |||||||
Other comprehensive income/(loss) | (235.6) | 21.3 | (47.1) | (76.7) | ||||
Net gains/(losses) in AOCI, end of period | (202.7) | (202.7) | ||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (4.8) | (3.5) | (4.8) | (3.5) | $ (5) | (2.5) | $ (5.3) | 1.1 |
Net gains/(losses) recognized in OCI before reclassifications | (0.4) | 1 | (4.7) | (6.9) | ||||
Net (gains)/losses reclassified from AOCI to earnings | 0.6 | 0.8 | 2.4 | 2.3 | ||||
Other comprehensive income/(loss) | 0.2 | 1.8 | (2.3) | (4.6) | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 10 | 3.2 | 10 | 3.2 | (10.7) | (4.1) | 21.6 | 10.9 |
Net gains/(losses) recognized in OCI before reclassifications | 35.6 | (12.7) | (0.6) | 48.5 | ||||
Net (gains)/losses reclassified from AOCI to earnings | (14.9) | (5.7) | 14.7 | (56.2) | ||||
Other comprehensive income/(loss) | 20.7 | (18.4) | 14.1 | (7.7) | ||||
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5 | 13 | 5 | 13 | (19.1) | 14 | 11.3 | 1.3 |
Net gains/(losses) recognized in OCI before reclassifications | 24.1 | 1.7 | (9) | 11.7 | ||||
Net (gains)/losses reclassified from AOCI to earnings | 0 | 0 | 0 | 0 | ||||
Other comprehensive income/(loss) | 24.1 | 1.7 | (9) | 11.7 | ||||
Translation Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (212.9) | (197.8) | (212.9) | (197.8) | 67.7 | (163) | (234) | (121.7) |
Net gains/(losses) recognized in OCI before reclassifications | (280.6) | 36.2 | (66.8) | (76.1) | ||||
Net (gains)/losses reclassified from AOCI to earnings | 0 | 0 | 16.9 | 0 | ||||
Other comprehensive income/(loss) | (280.6) | 36.2 | (49.9) | (76.1) | ||||
AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (202.7) | (185.1) | (202.7) | (185.1) | $ 32.9 | $ (155.6) | $ (206.4) | $ (108.4) |
Net gains/(losses) recognized in OCI before reclassifications | (221.3) | 26.2 | (81.1) | (22.8) | ||||
Net (gains)/losses reclassified from AOCI to earnings | (14.3) | (4.9) | 34 | (53.9) | ||||
Other comprehensive income/(loss) | $ (235.6) | $ 21.3 | $ (47.1) | $ (76.7) |
Equity (Impact of Reclassificat
Equity (Impact of Reclassifications from Accumulated Other Comprehensive Income on Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total cost of common stock repurchased | $ 4,111.5 | $ 1,254.1 | ||
Amounts Reclassified from AOCI, Interest income and other, net | $ 31.5 | $ 31.7 | 155.2 | 114.1 |
Revenues | 6,310.3 | 5,661.5 | 18,415.9 | 16,688.5 |
Amounts Reclassified from AOCI, Interest expense | (45.4) | (23.5) | (106.4) | (70.2) |
Amounts Reclassified from AOCI, Cost of sales including occupancy costs | (2,554.9) | (2,249.1) | (7,573.7) | (6,685.3) |
Gain resulting from acquisition of joint venture | 2.5 | 0 | 1,376.4 | 0 |
Gain (Loss) on Disposition of Business | 0 | 0 | 496.3 | 9.6 |
Amounts Reclassified from AOCI, Tax (expense)/benefit | (174.8) | (361.1) | (1,086.5) | (1,070.1) |
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 | 17.5 | 6.4 | ||
Amounts Reclassified from AOCI, Tax (expense)/benefit | (3.2) | (1.5) | 4 | (14) |
Amounts Reclassified from AOCI, Net of tax | 14.3 | 4.9 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Net of tax | 0.6 | 0.8 | 2.4 | 2.3 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [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 | (0.9) | (1.2) | (3.3) | (3.2) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Net of tax | (14.9) | (5.7) | 14.7 | (56.2) |
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Net of tax | 0 | 0 | 0 | 0 |
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain resulting from acquisition of joint venture | 0 | 0 | ||
Translation Adjustment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Net of tax | 0 | 0 | 16.9 | 0 |
Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Interest income and other, net | (1.7) | 0 | ||
Interest Rate Contract [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Interest expense | 1.2 | 1.2 | 3.6 | 3.6 |
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 | 18.5 | 1.5 | (8.1) | 55.6 |
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] | ||||
Revenues | 0.5 | 1.2 | (1.3) | 3.7 |
Foreign Currency and Coffee Contracts [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Cost of sales including occupancy costs | (1.8) | 3.7 | (11.7) | 8.2 |
Brazil Retail Operations [Member] | Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain (Loss) on Disposition of Business | (24.1) | 0 | ||
East China JV [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain resulting from acquisition of joint venture | $ 1,400 | $ 0 | 1,400 | |
East China JV [Member] | Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain resulting from acquisition of joint venture | 7.2 | 0 | ||
Taiwan JV [Member] | Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain resulting from acquisition of joint venture | $ 1.4 | $ 0 |
Employee Stock Plans (Narrative
Employee Stock Plans (Narrative) (Details) shares in Millions | Jul. 01, 2018shares |
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 | 55.6 |
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 | 12.9 |
Employee Stock Plans (Stock-Bas
Employee Stock Plans (Stock-Based Compensation Expense Recognized in Consolidated Statement of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 68.4 | $ 43.9 | $ 184.9 | $ 148.8 |
Stock Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2 | 10.1 | 23.2 | 34.1 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 66.4 | $ 33.8 | $ 161.7 | $ 114.7 |
Employee Stock Plans (Stock Opt
Employee Stock Plans (Stock Option and RSU Transactions) (Details) shares in Millions, $ in Millions | 9 Months Ended |
Jul. 01, 2018USD ($)shares | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, October 2, 2016 | 31.4 |
Granted, Stock Options | 3.9 |
Options exercised, Stock Options | (5.2) |
Forfeited/expired, Stock Options | (1.4) |
Options outstanding, April 2, 2017 | 28.7 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, Stock Options | $ | $ 24.2 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested RSUs, October 2, 2016 | 7.6 |
Granted, RSUs | 9.1 |
RSUs vested, RSUs | (3.1) |
Forfeited/expired, RSUs | (1.8) |
Nonvested RSUs, April 2, 2017 | 11.8 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, RSUs | $ | $ 282.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 01, 2018 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | ||
Net income tax benefit for provisional remeasurement of certain deferred taxes and related amounts | $ (82) | |
Provisional of income tax expense for estimated effects of transition tax, net of adjustments related to uncertain tax positions | 233 | |
Forecast [Member] | ||
Income Tax Contingency [Line Items] | ||
Corporate income tax blended rate | 24.50% | |
Other Long-Term Liabilities [Member] | ||
Income Tax Contingency [Line Items] | ||
Provisional of income tax expense for estimated effects of transition tax, net of adjustments related to uncertain tax positions | $ 237 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 9 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Out-of-the-money stock options | 7.9 | 4.5 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Net Earnings Per Common Share (EPS) - Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Starbucks | $ 852.5 | $ 691.6 | $ 3,762.8 | $ 2,096.1 |
Weighted average common shares outstanding (for basic calculation) | 1,377.1 | 1,447.7 | 1,397.7 | 1,452.8 |
Dilutive effect of outstanding common stock options and RSUs | 11.4 | 11.7 | 12.2 | 12.1 |
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,388.5 | 1,459.4 | 1,409.9 | 1,464.9 |
Earnings per share - basic | $ 0.62 | $ 0.48 | $ 2.69 | $ 1.44 |
Earnings per share - diluted | $ 0.61 | $ 0.47 | $ 2.67 | $ 1.43 |
Segment Reporting (Financial In
Segment Reporting (Financial Information For Reportable Operating Segments And All Other Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 01, 2018 | Apr. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Oct. 01, 2017 | |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 6,310.3 | $ 5,661.5 | $ 18,415.9 | $ 16,688.5 | ||
Impairment | 28.5 | 87.2 | ||||
Gain (Loss) on Disposition of Business | 0 | 0 | 496.3 | 9.6 | ||
Depreciation and amortization expenses | 330 | 252.6 | 920.4 | 756 | ||
Income from equity investees | 71.4 | 101 | 213.5 | 269.5 | ||
Operating income/(loss) | 1,038.2 | 1,044.2 | 2,926.9 | 3,112.1 | ||
Income Tax Expense (Benefit) | 174.8 | 361.1 | 1,086.5 | 1,070.1 | ||
Starbucks Coffee Switzerland [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | $ 28.5 | 17.9 | ||||
Americas Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | 0 | |||||
China / Asia Pacific Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | 0 | |||||
EMEA Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | (28.5) | |||||
Channel Development [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | 0 | |||||
All Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment | 0 | |||||
Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 6,310.3 | 5,661.5 | 18,415.9 | 16,688.5 | ||
Depreciation and amortization expenses | 289.7 | 215 | 801.6 | 643.4 | ||
Income from equity investees | 71.4 | 101 | 213.5 | 269.5 | ||
Operating income/(loss) | 1,380.7 | 1,306.3 | 3,922.7 | |||
Income Tax Expense (Benefit) | 3,911.4 | |||||
Operating Segments [Member] | Americas Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4,230.6 | 3,991.9 | 12,500.2 | 11,703.7 | ||
Depreciation and amortization expenses | 159.3 | 152.8 | 477.7 | 460.6 | ||
Income from equity investees | 0 | 0 | 0 | 0 | ||
Operating income/(loss) | 908.7 | 974.8 | 2,689.6 | 2,759.4 | ||
Operating Segments [Member] | China / Asia Pacific Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,229 | 840.6 | 3,259.1 | 2,380.3 | ||
Depreciation and amortization expenses | 120.7 | 51 | 296 | 148.9 | ||
Income from equity investees | 23.5 | 51.8 | 91 | 138.4 | ||
Operating income/(loss) | 234.1 | 223.8 | 635.5 | 563.2 | ||
Operating Segments [Member] | EMEA Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 275.4 | 249.9 | 825.3 | 743.9 | ||
Depreciation and amortization expenses | 8 | 7.7 | 23.8 | 22.9 | ||
Income from equity investees | 0 | 0 | 0 | 0 | ||
Operating income/(loss) | 34.9 | 9.8 | 69.5 | 81.5 | ||
Operating Segments [Member] | Channel Development [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 509 | 478.7 | 1,569.4 | 1,493.6 | ||
Depreciation and amortization expenses | 0.2 | 0.5 | 0.9 | 1.7 | ||
Income from equity investees | 47.9 | 49.2 | 122.5 | 131.1 | ||
Operating income/(loss) | 212.8 | 210.2 | 671.2 | 646.5 | ||
Operating Segments [Member] | All Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 66.3 | 100.4 | 261.9 | 367 | ||
Depreciation and amortization expenses | 1.5 | 3 | 3.2 | 9.3 | ||
Income from equity investees | 0 | 0 | 0 | 0 | ||
Operating income/(loss) | (9.8) | $ (112.3) | (154.4) | $ (127.9) | ||
Contract Termination [Member] | Restructuring Charges [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Business Exit Costs | $ 1.5 | $ 119 | $ 15.7 |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation Of Total Segment Operating Income To Consolidated Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Oct. 01, 2017 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating income/(loss) | $ 1,038.2 | $ 1,044.2 | $ 2,926.9 | $ 3,112.1 | ||
Income Tax Expense (Benefit) | 174.8 | 361.1 | 1,086.5 | 1,070.1 | ||
Gain (Loss) on Disposition of Business | 0 | 0 | 496.3 | 9.6 | ||
Gain resulting from acquisition of joint venture | 2.5 | 0 | 1,376.4 | 0 | ||
Interest income and other, net | 31.5 | 31.7 | 155.2 | 114.1 | ||
Interest expense | (45.4) | (23.5) | (106.4) | (70.2) | ||
Earnings before income taxes | 1,026.8 | 1,052.4 | 4,848.4 | 3,165.6 | ||
Operating Segments [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating income/(loss) | 1,380.7 | 1,306.3 | 3,922.7 | |||
Income Tax Expense (Benefit) | 3,911.4 | |||||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating income/(loss) | (342.5) | $ (262.1) | (984.5) | $ (810.6) | ||
Contract Termination [Member] | Restructuring Charges [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Business Exit Costs | $ 1.5 | $ 119 | $ 15.7 | |||
Forecast [Member] | Contract Termination [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Business Exit Costs | $ 134.7 |