Document And Entity Information
Document And Entity Information - shares shares in Millions | 6 Months Ended | |
Mar. 29, 2020 | Apr. 22, 2020 | |
Cover [Abstract] | ||
Current Fiscal Year End Date | --09-27 | |
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | WA | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Period End Date | Mar. 29, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-20322 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SBUX | |
Entity Central Index Key | 0000829224 | |
Current Fiscal Year End Date | --09-27 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 1,168.3 | |
Entity Registrant Name | Starbucks Corporation | |
Entity Address, Address Line One | 2401 Utah Avenue South | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98134 | |
City Area Code | 206 | |
Local Phone Number | 447-1575 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Security Exchange Name | NASDAQ | |
Entity Tax Identification Number | 91-1325671 | |
Document Information [Line Items] | ||
Entity Shell Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Revenues | $ 5,995.7 | $ 6,305.9 | $ 13,092.8 | $ 12,938.7 |
Cost of Goods and Services Sold | 1,997.7 | 2,012 | 4,234.2 | 4,187.8 |
Store operating expenses | 2,721.4 | 2,554.1 | 5,542.9 | 5,140.9 |
Other operating expenses | 95 | 87.1 | 196.7 | 184.9 |
Depreciation and amortization expenses | 356.3 | 356.2 | 707.4 | 689.6 |
General and administrative expenses | 406.5 | 458.1 | 840.7 | 906 |
Restructuring, Settlement and Impairment Provisions | (0.7) | 43 | 5.6 | 86.2 |
Total operating expenses | 5,576.2 | 5,510.5 | 11,527.5 | 11,195.4 |
Income from equity investees | 67.9 | 62.3 | 141.9 | 130.1 |
Operating income | 487.4 | 857.7 | 1,707.2 | 1,873.4 |
Gain (Loss) on Disposition of Business | 0 | 21 | 0 | 21 |
Interest income and other, net | 2 | 15.2 | 18 | 39.9 |
Interest expense | (99.2) | (73.9) | (191.1) | (148.9) |
Earnings before income taxes | 390.2 | 820 | 1,534.1 | 1,785.4 |
Income Tax Expense (Benefit) | 65.4 | 161.2 | 324 | 366.4 |
Net earnings including noncontrolling interests | 324.8 | 658.8 | 1,210.1 | 1,419 |
Net earnings/(loss) attributable to noncontrolling interests | (3.6) | (4.4) | (4) | (4.6) |
Net earnings attributable to Starbucks | $ 328.4 | $ 663.2 | $ 1,214.1 | $ 1,423.6 |
Earnings per share - basic | $ 0.28 | $ 0.54 | $ 1.03 | $ 1.15 |
Earnings per share - diluted | $ 0.28 | $ 0.53 | $ 1.02 | $ 1.14 |
Weighted average shares outstanding: | ||||
Basic | 1,171.8 | 1,239.2 | 1,176.1 | 1,240.6 |
Diluted | 1,180.7 | 1,250.7 | 1,185.8 | 1,252.1 |
Company-operated stores [Member] | ||||
Revenues | $ 4,766 | $ 5,159 | $ 10,546.6 | $ 10,529.3 |
Licensed stores [Member] | ||||
Revenues | 689.8 | 678.2 | 1,481.9 | 1,415.3 |
Product and Service, Other [Member] | ||||
Revenues | $ 539.9 | $ 468.7 | $ 1,064.3 | $ 994.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Net earnings including noncontrolling interests | $ 324.8 | $ 658.8 | $ 1,210.1 | $ 1,419 |
Other comprehensive loss, net of tax: | ||||
Other comprehensive income/(loss) | (134.4) | 71.7 | (23.3) | 58.8 |
Comprehensive income including noncontrolling interests | 190.4 | 730.5 | 1,186.8 | 1,477.8 |
Comprehensive income/(loss) attributable to noncontrolling interests | (3.6) | (4.4) | (4) | (4.6) |
Comprehensive income attributable to Starbucks | 194 | 734.9 | 1,190.8 | 1,482.4 |
Available-for-sale Securities [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized holding gains/(losses) on available-for-sale securities, before tax | 3.2 | 3.7 | 3.1 | 5.9 |
Unrealized holding gains/(losses) on available-for-sale securities, tax (expense)/benefit | (0.7) | (0.8) | (0.7) | (1.3) |
Cash Flow Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | (127.9) | (12.4) | (95.5) | (21.5) |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | 31.2 | 3.5 | 24.6 | 5.3 |
Net Investment Hedging [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Unrealized gains/(losses) on hedging instruments, before tax | 57.6 | 2.9 | 81.3 | (19) |
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit | (14.6) | (0.7) | (20.6) | 4.9 |
Translation Adjustment [Member] | ||||
Other comprehensive loss, net of tax: | ||||
Translation adjustment and other, before tax | (79.9) | 78.3 | (3.8) | 79.9 |
Translation adjustment and other, tax (expense)/benefit | 1.5 | 1.4 | 1.5 | 1.4 |
Other comprehensive income/(loss) | (78.4) | 79.7 | (2.3) | 81.3 |
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 | (6.4) | (5.8) | (17.1) | 2.3 |
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, tax expense/(benefit) | $ 1.6 | $ 1.6 | $ 3.9 | $ 0.9 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 2,572.3 | $ 2,686.6 |
Short-term investments | 52.9 | 70.5 |
Accounts receivable, net | 941 | 879.2 |
Inventories | 1,492.2 | 1,529.4 |
Prepaid expenses and other current assets | 691.5 | 488.2 |
Total current assets | 5,749.9 | 5,653.9 |
Long-term investments | 198.8 | 220 |
Equity Investments | 420.9 | 396 |
Property, plant and equipment, net | 6,387 | 6,431.7 |
Operating Lease, Right-of-Use Asset | 8,260.8 | 0 |
Deferred income taxes, net | 1,709.7 | 1,765.8 |
Other long-term assets | 580.1 | 479.6 |
Other intangible assets | 678.7 | 781.8 |
Goodwill | 3,493 | 3,490.8 |
TOTAL ASSETS | 27,478.9 | 19,219.6 |
Current liabilities: | ||
Accounts payable | 997.7 | 1,189.7 |
Accrued liabilities | 1,539 | 1,753.7 |
Employee-related Liabilities, Current | 596.1 | 664.6 |
Accrued Income Taxes, Current | 86.7 | 1,291.7 |
Operating Lease, Liability, Current | 1,253.5 | 0 |
Deferred Revenue, Current | 1,436.3 | 1,269 |
Short-term Debt | 1,107.1 | 0 |
Current portion of long-term debt | 1,249.4 | 0 |
Total current liabilities | 8,265.8 | 6,168.7 |
Long-term debt | 11,658.7 | 11,167 |
Operating Lease, Liability, Noncurrent | 7,650.4 | 0 |
Deferred Tax and Other Liabilities, Noncurrent | 751.4 | 1,370.5 |
Total liabilities | 35,011.8 | 25,450.6 |
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 | 1.2 | 1.2 |
Additional paid-in capital | 41.1 | 41.1 |
Retained earnings | (7,050.6) | (5,771.2) |
Accumulated other comprehensive loss | (521.8) | (503.3) |
Total shareholders' equity | (7,530.1) | (6,232.2) |
Noncontrolling interests | (2.8) | 1.2 |
Total equity | (7,532.9) | (6,231) |
TOTAL LIABILITIES AND EQUITY | $ 27,478.9 | $ 19,219.6 |
Authorized shares of common stock | 2,400,000,000 | 2,400,000,000 |
Par value of common stock | $ 0.001 | $ 0.001 |
Commercial Paper [Member] | ||
Current liabilities: | ||
Short-term Debt | $ 1,100 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 29, 2020 | Sep. 29, 2019 |
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 | 1,168,100,000 | 1,184,600,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES: | ||
Net earnings including noncontrolling interests | $ 1,210.1 | $ 1,419 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 746.9 | 723.5 |
Deferred income taxes, net | 47.7 | (714.5) |
Income earned from equity method investees | (116.3) | (108.2) |
Distributions received from equity method investees | 98.1 | 93.3 |
Gain (Loss) on Disposition of Business | 0 | 21 |
Stock-based compensation | 146.6 | 192.1 |
Goodwill impairments | 0 | 5.4 |
Non-cash Lease Expense | 596.3 | 0 |
Other | 67.7 | 91.1 |
Cash provided by changes in operating assets and liabilities: | ||
Accounts receivable | (60.7) | 9.8 |
Inventories | 36.9 | (51) |
Prepaid expenses and other current assets | 247.7 | (774.6) |
Increase (Decrease) in Income Taxes Payable | (1,227.4) | 542 |
Accounts payable | (186.4) | (83.4) |
Deferred revenue | 112.1 | 9.4 |
Increase (Decrease) in Operating Lease Liability | (608.6) | 0 |
Other operating assets and liabilities | 140.5 | 112.7 |
Net cash provided by operating activities | 474.8 | 2,769.4 |
INVESTING ACTIVITIES: | ||
Purchases of investments | (65.1) | (150.2) |
Sales of investments | 93.7 | 218.3 |
Maturities and calls of investments | 4.3 | 55.1 |
Additions to property, plant and equipment | (758.3) | (845.6) |
Proceeds from sale of equity in joint venture | 0 | 48.5 |
Other | (22.5) | (37.1) |
Net cash used by investing activities | (747.9) | (711) |
FINANCING ACTIVITIES: | ||
Proceeds from (Repayments of) Commercial Paper | 613 | 75 |
Proceeds from Issuance of Commercial Paper | 494.1 | 0 |
Repayments of Long-term Debt | 0 | 350 |
Proceeds from issuance of common stock | 65.4 | 275.7 |
Cash dividends paid | (965.2) | (894.5) |
Repurchase of common stock | 1,698.9 | (7,827.9) |
Minimum tax withholdings on share-based awards | (87.6) | (56.3) |
Other | (10.4) | 0.1 |
Net cash used by financing activities | 150.1 | (8,777.9) |
Effect of exchange rate changes on cash and cash equivalents | 8.7 | 18.3 |
Net increase/(decrease) in cash and cash equivalents | (114.3) | (6,701.2) |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 2,686.6 | 8,756.3 |
End of period | 2,572.3 | 2,055.1 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 186.3 | 132.7 |
Income taxes, net of refunds | $ 1,726.2 | $ (168.8) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,175.8 | $ 1.3 | $ 41.1 | $ 1,457.4 | $ (330.3) | $ 1,169.5 | $ 6.3 |
Common Stock, Shares, Outstanding | 1,309.1 | ||||||
Cash dividends declared per share | $ 0.72 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 1,419 | $ 0 | 0 | 1,423.6 | 0 | 1,423.6 | (4.6) |
Other comprehensive income/(loss) | 58.8 | 0 | 0 | 0 | 58.8 | 58.8 | 0 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 194 | 0 | 194 | 0 | 0 | 194 | 0 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 203 | 0 | 203 | 0 | 0 | 203 | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 16.4 | 0 | 16.4 | 0 | 0 | 16.4 | 0 |
Stock Repurchased and Retired During Period, Value | (7,713.2) | (0.1) | (413.4) | (7,299.7) | 0 | (7,713.2) | 0 |
Dividends, Cash | (884.6) | $ 0 | 0 | (884.6) | 0 | (884.6) | 0 |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 10 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.2 | ||||||
Stock Repurchased and Retired During Period, Shares | (109.3) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (2,878.8) | $ 1.2 | 41.1 | (2,584) | (343.2) | (2,884.9) | 6.1 |
Common Stock, Shares, Outstanding | 1,243.2 | ||||||
Cash dividends declared per share | $ 0.36 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 658.8 | $ 0 | 0 | 663.2 | 0 | 663.2 | (4.4) |
Other comprehensive income/(loss) | 71.7 | 0 | 0 | 0 | 71.7 | 71.7 | 0 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 96 | 0 | 96 | 0 | 0 | 96 | 0 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 158 | 0 | 158 | 0 | 0 | 158 | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 8.3 | 0 | 8.3 | 0 | 0 | 8.3 | 0 |
Stock Repurchased and Retired During Period, Value | (2,713.2) | 0 | (262.3) | (2,450.9) | 0 | (2,713.2) | 0 |
Dividends, Cash | (436) | $ 0 | 0 | (436) | 0 | (436) | 0 |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 4 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.1 | ||||||
Stock Repurchased and Retired During Period, Shares | (37.3) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (5,035.2) | $ 1.2 | 41.1 | (4,807.7) | (271.5) | (5,036.9) | 1.7 |
Cumulative Effect of New Accounting Principle in Period of Adoption | 495.6 | $ 0 | 0 | 495.6 | 0 | 495.6 | 0 |
Common Stock, Shares, Outstanding | 1,210 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (6,231) | $ 1.2 | 41.1 | (5,771.2) | (503.3) | (6,232.2) | 1.2 |
Common Stock, Shares, Outstanding | 1,184.6 | ||||||
Cash dividends declared per share | $ 0.82 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 1,210.1 | $ 0 | 0 | 1,214.1 | 0 | 1,214.1 | (4) |
Other comprehensive income/(loss) | (23.3) | 0 | 0 | 0 | (23.3) | (23.3) | 0 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 148.4 | 0 | 148.4 | 0 | 0 | 148.4 | 0 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (40.5) | 0 | (40.5) | 0 | 0 | (40.5) | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 18.5 | 0 | 18.5 | 0 | 0 | 18.5 | 0 |
Stock Repurchased and Retired During Period, Value | (1,675) | 0 | (126.4) | (1,548.6) | 0 | (1,675) | 0 |
Dividends, Cash | (957.4) | $ 0 | 0 | (957.4) | 0 | (957.4) | 0 |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 3.6 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.2 | ||||||
Stock Repurchased and Retired During Period, Shares | (20.3) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (6,759.1) | $ 1.2 | 41.1 | (6,414.8) | (387.4) | (6,759.9) | 0.8 |
Common Stock, Shares, Outstanding | 1,174.5 | ||||||
Cash dividends declared per share | $ 0.41 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 324.8 | $ 0 | 0 | 328.4 | 0 | 328.4 | (3.6) |
Other comprehensive income/(loss) | (134.4) | 0 | 0 | 0 | (134.4) | (134.4) | 0 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 57.1 | 0 | 57.1 | 0 | 0 | 57.1 | 0 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 13.6 | 0 | 13.6 | 0 | 0 | 13.6 | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 9.6 | 0 | 9.6 | 0 | 0 | 9.6 | 0 |
Stock Repurchased and Retired During Period, Value | (567.1) | 0 | (80.3) | (486.8) | 0 | (567.1) | 0 |
Dividends, Cash | (477.4) | $ 0 | 0 | (477.4) | 0 | (477.4) | 0 |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 0.8 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.1 | ||||||
Stock Repurchased and Retired During Period, Shares | (7.3) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (7,532.9) | $ 1.2 | 41.1 | (7,050.6) | (521.8) | (7,530.1) | (2.8) |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 17.3 | $ 0 | $ 0 | $ 12.5 | $ 4.8 | $ 17.3 | $ 0 |
Common Stock, Shares, Outstanding | 1,168.1 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Supplemental Balance Sheet Information (Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Prepaid Expenses and Other Current Assets [Line Items] | ||
Income tax receivable | $ 390.8 | $ 141.1 |
Other prepaid expenses and current assets | 300.7 | 347.1 |
Prepaid expenses and other current assets | $ 691.5 | $ 488.2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 29, 2020 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Financial Statement Preparation The unaudited consolidated financial statements as of March 29, 2020, and for the quarter and two quarters ended March 29, 2020 and March 31, 2019, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial information for the quarter and two quarters ended March 29, 2020 and March 31, 2019 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.” In the fourth quarter of fiscal 2019, we changed the classification of certain costs on our consolidated statements of earnings and revised prior period information to be consistent with the current period presentation. The most significant impact for the quarter and two quarters ended March 31, 2019, was the reclassification of our company-operated store occupancy costs from costs of sales to store operating expenses of approximately $591.8 million and $1.2 billion, respectively. We also made certain other immaterial changes. There was no impact to consolidated revenues, consolidated operating income, or net earnings per share as a result of these changes. Additionally, certain prior period information on the consolidated statements of cash flows was reclassified to conform to the current year presentation. The financial information as of September 29, 2019 is derived from our audited consolidated financial statements and notes for the fiscal year ended September 29, 2019 (“fiscal 2019”) included in Item 8 in the Fiscal 2019 Annual Report on Form 10-K (“10-K”). The information included in this 10-Q should be read in conjunction with the footnotes and management’s discussion and analysis of the consolidated financial statements in the 10-K. The results of operations for the quarter and two quarters ended March 29, 2020 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 27, 2020 (“fiscal 2020”). COVID-19 In December 2019, a novel strain of coronavirus (“COVID-19“) was first identified, and in March 2020, the World Health Organization categorized COVID-19 as a pandemic. To help control the spread of the virus and protect the health and safety of our partners (employees) and customers, we began temporarily closing or modifying operating models and hours of our retail stores in many markets both in response to governmental requirements and voluntarily, beyond the requirements of local authorities, during the second quarter of fiscal 2020. Changes made in our operations, combined with reduced customer traffic, resulted in material reductions in revenues and operating income during the second quarter of fiscal 2020, which prompted us to update our impairment analyses of our company-operated retail store portfolios and related lease right-of-use assets. For certain lower-performing stores, we compared the carrying value of store assets to undiscounted cash flows with updated assumptions on near-term profitability. As a result, we recorded an immaterial asset impairment charge within store operating expenses on our consolidated statement of earnings during the quarter ended March 29, 2020. We also evaluated our goodwill and indefinite-lived intangible assets at the end of the fiscal second quarter. Our most recently completed goodwill impairment analyses indicated significant excess fair values over carrying values across the different reporting units. Since we expect the negative financial impacts from the outbreak to be temporary, they do not significantly affect the assumptions underpinning our long-term revenue and cash flow growth rates, operating models and business strategies. Therefore, we do not consider the outbreak to be a triggering event to accelerate our annual goodwill impairment analysis. As a result, no impairment charges for goodwill and indefinite-lived intangible assets were recorded during the quarter. We evaluated our remaining assets, particularly accounts receivable and inventory. Our accounts receivable are mainly comprised of net unpaid invoices for product sales to and royalties from our licensees. Our allowance for doubtful accounts is calculated based on historical experience, licensee credit risk and application of the specific identification method. We also assessed incremental risks due to COVID-19 on our licensees' financial viability. To assist our international licensed partners during the outbreak, we provided a short-term payment extension for their outstanding receivables as of the end of the fiscal second quarter. We do not believe the form and length of the extension changed our revenue recognition policy or had a significant impact to future collectability. Based on these actions during the quarter ended March 29, 2020, we did not observe a significant deterioration of our receivable portfolio to warrant a significant increase in bad debt expense. We will continue to monitor our accounts receivable as we also committed to providing other forms of relief to certain licensees during the third quarter of fiscal 2020, which may reduce our revenues. Our inventories are stated at the lower of cost (primarily moving average cost) or net realizable value. We record reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. During the fiscal quarter ended March 29, 2020, we recorded significant inventory write-offs due to expired or the expected expiration of perishable ingredients and products as a result of excess inventory due to the temporary closure of our retail stores. See Note 5 , Inventories, for additional details. Depending on the pace of reopening of company-operated stores as well as future customer behaviors, among other factors, we may incur additional inventory write-offs during the third quarter of fiscal 2020. During the second quarter of fiscal 2020, we received an immaterial amount of COVID-19-related rent concessions for certain stores in China, generally correlating with the limited time period our stores were closed during stay-at-home mandates. Consistent with updated guidance from the Financial Accounting Standards Board (“FASB”) in April 2020, we have elected to treat COVID-19-related rent concessions as variable rent. While we are having ongoing conversations with landlords in various markets in seeking commercially reasonable lease concessions given the current environment, we have not yet confirmed significant concessions for the remainder of the year. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which among other things, provides employer payroll tax credits for wages paid to employees who are unable to work during the COVID-19 outbreak and options to defer payroll tax payments. Based on our preliminary evaluation of the CARES Act, we qualify for certain employer payroll tax credits as well as the deferral of payroll and other tax payments in the future, which will be treated as government subsidies to offset relating operating expenses. During the quarter ended March 29, 2020, the qualified payroll tax credits reduced our store operating expenses by approximately $35 million on our consolidated statement of earnings. We expect to record additional payroll tax credits from the U.S. and other governments primarily in our fiscal third quarter to offset qualified wages paid to our partners. We intend to defer qualified payroll and other tax payments as permitted by the CARES Act. We recorded our income tax expense, deferred tax assets and related liabilities based on management’s best estimates. Additionally, we assessed the likelihood of realizing the benefits of our deferred tax assets. As of the end of the fiscal quarter, we did not record significant valuation allowance adjustments based on available evidence. However, we will continue to monitor the realizability of our deferred tax assets, particularly in certain foreign jurisdictions where the outbreak has started to create significant net operating losses. Our ability to recover these deferred tax assets depends on several factors, including our results of operations and our ability to project future taxable income in those jurisdictions. If we determine that some portion of the tax benefit will not be realized, we would record a valuation allowance, which would increase our income tax expense. Total deferred tax assets as of the end of the fiscal second quarter were approximately $1.7 billion, of which approximately $100 million related to foreign jurisdictions where we expect to incur significant net operating losses in the near term, although the risks of failing to realize these benefits vary across the jurisdictions. The COVID-19 pandemic remains a rapidly evolving situation. The continuation of the outbreak may cause prolonged periods of store closures and modified operating schedules and may result in changes in customer behaviors, including a potential reduction in consumer discretionary spending in our company-operated and licensed stores. These may lead to increased asset recovery and valuation risks, such as impairment of our company-operated store and other assets and an inability to realize deferred tax assets due to sustaining losses in certain jurisdictions. The uncertainties in the global economy will likely impact the financial viability of our suppliers, licensees and other business partners, which may interrupt our supply chain, limit our ability to collect receivables and require other changes to our operations. These and other factors will adversely impact our net revenues, operating income and earnings per share financial measures. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In the second quarter of fiscal 2020, we adopted the new guidance from the FASB on simplifying the accounting for income taxes by removing certain exceptions to the general principles. The guidance was adopted on a prospective basis and had no material impact on the consolidated financial statements. On September 30, 2019, we adopted the new guidance from the FASB on the recognition and measurement of leases utilizing the modified retrospective approach. As a result, the prior period information reported under the previous lease guidance has not been restated. As permitted under the new FASB lease guidance, we elected the package of practical expedients, which allowed us to retain our prior conclusions regarding lease identification, classification and initial direct costs. For our lease agreements with lease and non-lease components, we elected the practical expedient to account for these as a single lease component for all underlying classes of assets. For our adoption, we did not elect to use hindsight for our existing leases. Additionally, for short-term leases with an initial lease term of 12 months or less and with purchase options we are reasonably certain will not be exercised, we elected to not record right-of-use assets or corresponding lease obligations on our consolidated balance sheet. We will continue to record rent expense for each short-term lease on a straight-line basis over the lease term. The new FASB lease guidance had a material impact on our consolidated balance sheet; however, it did not have a material impact on our consolidated statement of earnings. The most material impact was the recognition of right-of-use assets of $8.4 billion upon adoption, with corresponding lease liabilities of $9.0 billion relating to our operating leases. Existing deferred rent and tenant improvement allowances of approximately $568.0 million, previously recorded within other long-term liabilities, were recorded as an offset to our gross operating lease right-of-use assets. Additionally, pursuant to the transition guidance, we derecognized build-to-suit lease assets, previously recorded in property, plant and equipment, net, along with the corresponding liabilities on the consolidated balance sheet as of September 30, 2019. Accordingly, these leases have been recorded as operating leases as of the adoption date and are now included in operating lease, right-of-use assets and operating lease liabilities on the consolidated balance sheet. As of the adoption date, accumulated deficit within shareholder's equity on our consolidated balance sheet decreased by $17.3 million, primarily related to the derecognition of build-to-suit leasing arrangements. See Note 9 , Leases, for further discussion regarding the adoption of the new guidance. In the first quarter of fiscal 2020, we adopted the new guidance from the FASB on the reclassification of certain tax effects from accumulated other comprehensive income (“AOCI”) which 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 was adopted prospectively with no material impact on the consolidated financial statements as of March 29, 2020. Recent Accounting Pronouncements Not Yet Adopted |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 29, 2020 | |
Revenue from Contract with Customer | Deferred Revenue Our deferred revenue primarily consists of the up-front prepaid royalty from Nestlé, for which we have continuing performance obligations to support the Global Coffee Alliance, and our unredeemed stored value card liability and unredeemed loyalty points (“Stars”) associated with our loyalty program. At March 29, 2020, the current and long-term deferred revenue related to the Nestlé up-front payment was $176.5 million and $6.6 billion, respectively. During the quarter and two quarters ended March 29, 2020, we recognized $44.2 million and $88.4 million in current deferred revenue, respectively, related to amortization of the up-front payment. For the quarter and two quarters ended March 31, 2019, we recognized $43.7 million and $87.8 million in current deferred revenue, respectively, related to amortization of the up-front payment. Changes in our deferred revenue balance related to our stored value cards and loyalty program (in millions) : Quarter Ended March 29, 2020 Total Stored value cards and loyalty program at December 29, 2019 1,561.0 Revenue deferred - card activations, card reloads and Stars earned 2,453.6 Revenue recognized - card and Stars redemptions and breakage (2,736.4) Other (1) (5.1) Stored value cards and loyalty program at March 29, 2020 (2) 1,273.1 Two Quarters Ended March 29, 2020 Total Stored value cards and loyalty program at September 29, 2019 $ 1,113.7 Revenue deferred - card activations, card reloads and Stars earned 5,961.1 Revenue recognized - card and Stars redemptions and breakage (5,798.3) Other (1) (3.4) Stored value cards and loyalty program at March 29, 2020 (2) $ 1,273.1 (1) “Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Mar. 29, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions, Divestitures and Strategic Alliance Fiscal 2019 In the third quarter of fiscal 2019, we sold our company-operated retail business in Thailand to Coffee Concepts Thailand, a joint venture between Maxim's Caterers Limited and F&N Retail Connection Co. Ltd, converting this operation to a fully licensed market. This transaction resulted in a pre-tax gain of $601.9 million, which was included in net gains resulting from divestiture of certain operations on our consolidated statements of earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Mar. 29, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rates From time to time, we enter into designated cash flow hedges to manage the variability in cash flows due to changes in benchmark interest rates. We enter into interest rate swap agreements and treasury locks, which are synthetic forward sales of U.S. treasury securities settled in cash based upon the difference between an agreed-upon treasury rate and the prevailing treasury rate at settlement. These agreements are cash settled at the time of the pricing of the related debt. Each derivative agreement's gain or loss is recorded in 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 due to changes in the relevant benchmark interest rates are recorded in interest expense. 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 resulting gains and losses from these derivatives are recorded in AOCI and subsequently reclassified to revenue, cost of sales, or interest income and other, net, respectively, when the hedged exposures affect net earnings. From time to time, we may enter into financial instruments, including, but not limited to, forward and swap contracts or foreign currency-denominated debt, to hedge the currency exposure of our net investments in certain international operations. The resulting gains and losses from these derivatives are generally recorded in AOCI and are 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 forward contracts, futures contracts, and collars to hedge anticipated cash flows under our price-to-be-fixed green coffee contracts, which are described further in Note 5, Inventories, or our longer-dated forecasted coffee demand where underlying fixed price and price-to-be-fixed contracts are not yet available. The resulting gains and losses are recorded in AOCI and are subsequently reclassified to cost of sales when the hedged exposure affects net earnings. Depending on market conditions, we may also enter into dairy forward contracts and futures contracts to hedge a portion of anticipated cash flows under our dairy purchase contracts and our forecasted dairy demand. The resulting gains or losses are recorded in AOCI and are subsequently reclassified to cost of sales when the hedged exposure affects net earnings. To mitigate the price uncertainty of a portion of our future purchases, including dairy products, diesel fuel and other commodities, we enter into swap contracts, futures and collars that are not designated as hedging instruments. The resulting gains and losses 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 on our consolidated statements of earnings. Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items. For de-designated cash flow hedges in which the underlying transactions are no longer likely to occur, the related accumulated derivative gains or losses are recognized in interest income and other, net on our consolidated statements of earnings. During the quarter ended March 29, 2020, we de-designated certain cash flow hedges due to the global COVID-19 impacts, resulting in the release of an insignificant net gain from AOCI to our consolidated statement of earnings. We continue to believe transactions relating to our other designated cash flow hedges are probable to occur as of the end of the fiscal quarter. 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) Mar 29, Sep 29, Cash Flow Hedges: Interest rates $ (87.5) $ 0.5 $ 3.1 151 Cross-currency swaps 1.7 (1.4) — 56 Foreign currency - other 26.8 12.9 13.8 36 Coffee (2.0) (1.0) 0.2 21 Dairy (3.8) — (3.8) 8 Net Investment Hedges: Foreign currency 16.0 16.0 — 0 Cross-currency swaps 45.9 — — 114 Foreign currency debt (14.1) (26.1) — 48 Pre-tax gains and losses on derivative contracts and foreign currency-denominated long-term debt designated as hedging instruments recognized in OCI and reclassifications from AOCI to earnings ( in millions ): Quarter Ended Gains/(Losses) Recognized in OCI Before Reclassifications Gains/(Losses) Reclassified from AOCI to Earnings Location of gain/(loss) Mar 29, Mar 31, Mar 29, Mar 31, Cash Flow Hedges: Interest rates $ (140.6) $ (14.9) $ 0.5 $ 1.4 Interest expense Cross-currency swaps 2.9 5.4 (0.4) (0.1) Interest expense 0.2 1.4 Interest income and other, net Foreign currency - other 26.8 (2.9) 0.9 1.3 Licensed stores revenues (1.0) 1.7 Cost of sales 2.0 — Interest income and other, net (1) Coffee (12.1) — — (0.1) Cost of sales Dairy (4.9) — 0.7 — Cost of sales (0.6) — Interest income and other, net (1) Net Investment Hedges: Cross-currency swaps 58.0 — 3.9 — Interest expense Foreign currency debt (0.4) 2.9 — — (1) As a result of the global COVID-19 impacts, Starbucks discontinued cash flow hedges during the quarter ended March 29, 2020. Two Quarters Ended Gains/(Losses) Gains/(Losses) Reclassified from Location of gain/(loss) Mar 29, Mar 31, Mar 29, Mar 31, Cash Flow Hedges: Interest rates $ (120.6) $ (30.6) $ 1.3 $ 2.8 Interest expense Cross-currency swaps 9.1 (2.6) (0.6) (0.5) Interest expense 5.8 (9.9) Interest income and other, net Foreign currency - other 22.1 11.7 2.6 2.7 Licensed stores revenues (1.3) 2.2 Cost of sales 2.0 — Interest income and other, net (1) Coffee (1.1) — — (0.3) Cost of sales Dairy (5.0) — 0.7 — Cost of sales (0.6) — Interest income and other, net (1) Net Investment Hedges: Cross-currency swaps 68.7 — 7.2 — Interest expense Foreign currency debt 12.6 (19.0) — — (1) As a result of the global COVID-19 impacts, Starbucks discontinued cash flow hedges during the quarter ended March 29, 2020. Pre-tax gains and losses on non-designated derivatives and designated fair value hedging instruments and the related fair value hedged item recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Location of gain/(loss) recognized in earnings Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Non-Designated Derivatives: Foreign currency - other Interest income and other, net $ 4.9 $ 0.5 $ 8.3 $ (7.4) Dairy Interest income and other, net — (0.1) — (2.2) Diesel fuel and other commodities Interest income and other, net (8.9) 1.9 (8.0) (4.7) Fair Value Hedges: Interest rate swap Interest expense 35.2 10.1 24.3 26.2 Long-term debt (hedged item) Interest expense (27.5) (11.6) (23.3) (28.5) Notional amounts of outstanding derivative contracts (in millions) : Mar 29, 2020 Sep 29, 2019 Interest rate swap $ 1,750 $ 1,500 Cross-currency swaps 1,004 341 Foreign currency - other 1,120 1,125 Coffee 96 52 Dairy 49 1 Diesel fuel and other commodities 24 17 Fair value of outstanding derivative contracts ( in millions ) including the location of the asset and/or liability on the consolidated balance sheets: Derivative Assets Balance Sheet Location Mar 29, 2020 Sep 29, 2019 Designated Derivative Instruments: Interest rates Other long-term assets $ — $ 0.1 Cross-currency swaps Other long-term assets 67.6 0.2 Foreign currency - other Prepaid expenses and other current assets 22.7 11.4 Other long-term assets 16.7 7.8 Coffee Prepaid expenses and other current assets 1.0 — Dairy Prepaid expenses and other current assets 1.3 — Interest rate swap Other long-term assets 42.5 18.2 Non-designated Derivative Instruments: Foreign currency Prepaid expenses and other current assets 5.1 1.0 Diesel fuel and other commodities Prepaid expenses and other current assets — 0.2 Derivative Liabilities Balance Sheet Location Mar 29, 2020 Sep 29, 2019 Designated Derivative Instruments: Interest rates Other long-term liabilities $ 67.0 $ 2.6 Cross-currency swaps Other long-term liabilities 6.0 9.7 Foreign currency - other Accrued liabilities 0.1 0.6 Other long-term liabilities 0.4 0.1 Coffee Accrued liabilities 4.5 1.0 Other long-term liabilities 0.1 0.1 Dairy Accrued liabilities 6.9 — Non-designated Derivative Instruments: Foreign currency Accrued liabilities 3.4 3.0 Diesel fuel and other commodities Accrued liabilities 7.4 1.1 The following amounts were recorded on the consolidated balance sheets related to fixed-to-floating interest rate swaps designated in fair value hedging relationships: Carrying amount of hedged item Cumulative amount of fair value hedging adjustment included in the carrying amount Mar 29, 2020 Sep 29, 2019 Mar 29, 2020 Sep 29, 2019 Location on the balance sheet Long-term debt $ 785.1 $ 761.8 $ 35.1 $ 11.8 Additional disclosures related to cash flow gains and losses included in AOCI, as well as subsequent reclassifications to earnings, are included in Note 11 , Equity. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis (in millions) : Fair Value Measurements at Reporting Date Using Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 2,572.3 $ 2,572.3 $ — $ — Short-term investments: Available-for-sale debt securities Corporate debt securities 3.1 — 3.1 — Total available-for-sale debt securities 3.1 — 3.1 — Marketable equity securities 49.8 49.8 — — Total short-term investments 52.9 49.8 3.1 — Prepaid expenses and other current assets: Derivative assets 30.1 1.5 28.6 — Long-term investments: Available-for-sale debt securities Corporate debt securities 87.7 — 87.7 — Auction rate securities 5.7 — — 5.7 U.S. government treasury securities 101.5 101.5 — — State and local government obligations 3.6 — 3.6 — Mortgage and other asset-backed securities 0.3 — 0.3 — Total long-term investments 198.8 101.5 91.6 5.7 Other long-term assets: Derivative assets 126.8 — 126.8 — Total assets $ 2,980.9 $ 2,725.1 $ 250.1 $ 5.7 Liabilities: Accrued liabilities: Derivative liabilities $ 22.3 $ 7.7 $ 14.6 $ — Other long-term liabilities: Derivative liabilities 73.5 0.1 73.4 — Total liabilities $ 95.8 $ 7.8 $ 88.0 $ — Fair Value Measurements at Reporting Date Using Balance at September 29, 2019 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 $ 2,686.6 $ 2,686.6 $ — $ — Short-term investments: Available-for-sale debt securities Commercial paper 0.5 — 0.5 — Corporate debt securities 3.5 — 3.5 — Total available-for-sale debt securities 4.0 — 4.0 — Marketable equity securities 66.5 66.5 — — Total short-term investments 70.5 66.5 4.0 — Prepaid expenses and other current assets: Derivative assets 12.6 — 12.6 — Long-term investments: Available-for-sale debt securities Corporate debt securities 101.2 — 101.2 — Auction rate securities 5.8 — — 5.8 U.S. government treasury securities 106.5 106.5 — — State and local government obligations 4.9 — 4.9 — Mortgage and other asset-backed 1.6 — 1.6 — Total long-term investments 220.0 106.5 107.7 5.8 Other long-term assets: Derivative assets 26.3 — 26.3 — Total assets $ 3,016.0 $ 2,859.6 $ 150.6 $ 5.8 Liabilities: Accrued liabilities: Derivative liabilities $ 5.7 $ 1.1 $ 4.6 $ — Other long-term liabilities: Derivative liabilities 12.5 — 12.5 — Total liabilities $ 18.2 $ 1.1 $ 17.1 $ — 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 available-for-sale debt securities and marketable equity securities were not material as of March 29, 2020 and September 29, 2019. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets and other assets. These assets are measured at fair value if determined to be impaired. As discussed in Note 1 , Summary of Significant Accounting Policies, we recorded an immaterial impairment charge during the quarter ended March 29, 2020. The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 8 |
Inventories
Inventories | 6 Months Ended |
Mar. 29, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (in millions) : Mar 29, 2020 Sep 29, 2019 Coffee: Unroasted $ 663.3 $ 656.5 Roasted 233.8 276.5 Other merchandise held for sale 309.0 288.0 Packaging and other supplies 286.1 308.4 Total $ 1,492.2 $ 1,529.4 Other merchandise held for sale includes, among other items, serveware, food and tea. Inventory levels vary due to seasonality, commodity market supply and price fluctuations. As of March 29, 2020, we had committed to purchasing green coffee totaling $861 million under fixed-price contracts and an estimated $463 million under price-to-be-fixed contracts. We expect to take physical delivery for these contracts. A portion of our price-to-be-fixed contracts are effectively fixed through the use of futures. See Note 3 , Derivative Financial Instruments, for further discussion. 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 and continuous monitoring, the risk of non-delivery on these purchase commitments is remote. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information | 6 Months Ended |
Mar. 29, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information (in millions) : Prepaid Expenses and Other Current Assets Mar 29, 2020 Sep 29, 2019 Income tax receivable $ 390.8 $ 141.1 Other prepaid expenses and current assets 300.7 347.1 Total prepaid expenses and current assets $ 691.5 $ 488.2 Property, Plant and Equipment, net Mar 29, 2020 Sep 29, 2019 Land $ 46.8 $ 46.8 Buildings 575.9 691.5 Leasehold improvements 8,169.4 7,948.6 Store equipment 2,724.1 2,659.5 Roasting equipment 799.8 769.6 Furniture, fixtures and other 1,881.0 1,799.0 Work in progress 384.1 358.5 Property, plant and equipment, gross 14,581.1 14,273.5 Accumulated depreciation (8,194.1) (7,841.8) Property, plant and equipment, net $ 6,387.0 $ 6,431.7 Accrued Liabilities Mar 29, 2020 Sep 29, 2019 Accrued occupancy costs $ 57.7 $ 176.9 Accrued dividends payable 478.9 485.7 Accrued capital and other operating expenditures 634.9 703.9 Self insurance reserves 233.8 210.5 Accrued business taxes 133.7 176.7 Total accrued liabilities $ 1,539.0 $ 1,753.7 |
Other Intangible Assets and Goo
Other Intangible Assets and Goodwill | 6 Months Ended |
Mar. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Other Intangible Assets and Goodwill Refer to Note 1 , Summary of Significant Accounting Policies, for impairment considerations during the quarter ended March 29, 2020 due to COVID-19. Indefinite-lived intangible assets (in millions) Mar 29, 2020 Sep 29, 2019 Trade names, trademarks and patents $ 204.2 $ 203.4 Finite-lived intangible assets Mar 29, 2020 Sep 29, 2019 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired and reacquired rights $ 1,076.9 $ (637.2) $ 439.7 $ 1,075.0 $ (537.2) $ 537.8 Acquired trade secrets and processes 27.6 (20.6) 7.0 27.6 (19.2) 8.4 Trade names, trademarks and patents 41.3 (24.5) 16.8 40.6 (22.9) 17.7 Licensing agreements 15.9 (13.2) 2.7 16.2 (12.2) 4.0 Other finite-lived intangible assets 22.2 (13.9) 8.3 22.0 (11.5) 10.5 Total finite-lived intangible assets $ 1,183.9 $ (709.4) $ 474.5 $ 1,181.4 $ (603.0) $ 578.4 Amortization expense for finite-lived intangible assets was $54.5 million and $108.6 million for the quarter and two quarters ended March 29, 2020 and $68.7 million and $123.1 million for the quarter and two quarters ended March 31, 2019, respectively. Estimated future amortization expense as of March 29, 2020 ( in millions ): Fiscal Year Ending Total 2020 (excluding the two quarters ended March 29, 2020) $ 107.6 2021 195.7 2022 161.4 2023 2.8 2024 2.2 Thereafter 4.8 Total estimated future amortization expense $ 474.5 Goodwill Changes in the carrying amount of goodwill by reportable operating segment (in millions) : Americas International Channel Corporate and Other Total Goodwill balance at September 29, 2019 $ 496.7 $ 2,958.4 $ 34.7 $ 1.0 $ 3,490.8 Other (1) (1.5) 3.7 — — 2.2 Goodwill balance at March 29, 2020 $ 495.2 $ 2,962.1 $ 34.7 $ 1.0 $ 3,493.0 (1) “Other” consists of changes in the goodwill balance resulting from foreign currency translation. |
Debt
Debt | 6 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020, we had $1.1 billion of borrowings outstanding under the program, of which a majority matures in the third quarter of fiscal 2020. 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) : Mar 29, 2020 Sep 29, 2019 Stated Interest Rate Effective Interest Rate (1) Issuance Amount Estimated Fair Value Amount Estimated Fair Value November 2020 notes $ 500.0 $ 501 $ 500.0 $ 501 2.200 % 2.228 % February 2021 notes 500.0 501 500.0 500 2.100 % 2.293 % February 2021 notes 250.0 250 250.0 250 2.100 % 1.600 % June 2022 notes 500.0 510 500.0 509 2.700 % 2.819 % March 2023 notes 1,000.0 1,025 1,000.0 1,033 3.100 % 3.107 % October 2023 notes (2) 750.0 801 750.0 798 3.850 % 2.859 % March 2024 notes (3) 775.7 785 788.3 795 0.372 % 0.462 % August 2025 notes 1,250.0 1,368 1,250.0 1,351 3.800 % 3.721 % June 2026 notes 500.0 501 500.0 502 2.450 % 2.511 % March 2027 notes (4) 500.0 486 — — 2.000 % 2.058 % March 2028 notes 600.0 627 600.0 644 3.500 % 3.529 % November 2028 notes 750.0 832 750.0 837 4.000 % 3.958 % August 2029 notes 1,000.0 1,052 1,000.0 1,080 3.550 % 3.871 % March 2030 notes (4) 750.0 706 — — 2.250 % 3.102 % June 2045 notes 350.0 387 350.0 390 4.300 % 4.348 % December 2047 notes 500.0 500 500.0 518 3.750 % 3.765 % November 2048 notes 1,000.0 1,199 1,000.0 1,160 4.500 % 4.504 % August 2049 notes 1,000.0 1,157 1,000.0 1,165 4.450 % 4.433 % March 2050 notes (4) 500.0 508 — — 3.350 % 3.381 % Total 12,975.7 13,696 11,238.3 12,033 Aggregate debt issuance costs and unamortized premium/(discount), net (102.7) (83.1) Hedge accounting fair value adjustment (2) 35.1 11.8 Total $ 12,908.1 $ 11,167.0 (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) Amount includes the change in fair value due to changes in benchmark interest rates related to our October 2023 notes. Refer to Note 3 , Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge. (3) Japanese yen-denominated long-term debt. (4) Issued in March 2020. 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 March 29, 2020, we were in compliance with all applicable covenants. The following table summarizes our long-term debt maturities as of March 29, 2020 by fiscal year ( in millions ): Fiscal Year Total 2020 $ — 2021 1,250.0 2022 500.0 2023 1,000.0 2024 1,525.7 Thereafter 8,700.0 Total $ 12,975.7 |
Leases
Leases | 6 Months Ended |
Mar. 29, 2020 | |
Leases [Abstract] | |
Leases | Leases The following significant lease accounting policies from our most recent Annual Report on Form 10-K have been updated to reflect the adoption of FASB's new guidance on the recognition and measurement of leases. The majority of our leases are operating leases for our company-operated retail store locations. We also lease, among other things, roasting, distribution and warehouse facilities and office space for corporate administrative purposes. We do not enter into lease transactions with related parties. We categorize leases as either operating or finance leases at the commencement date of the lease. Operating lease agreements may contain tenant improvement allowances, rent holidays, rent escalation clauses and/or contingent rent provisions. We have lease agreements with lease and non-lease components, which are accounted for together as a single lease component for all underlying classes of assets. We recognize a right-of-use (“ROU”) asset and lease liability for each operating and finance lease with a contractual term greater than 12 months at the time of lease inception. We do not record leases with an initial term of 12 months or less on our consolidated balance sheet but continue to record rent expense on a straight-line basis over the lease term. Our leases often include options to extend or terminate at our sole discretion, which are included in the determination of lease term when they are reasonably certain to be exercised. Our lease liability represents the present value of future lease payments over the lease term. Given our policy election to combine lease and non-lease components, we also consider fixed common area maintenance (“CAM”) part of our fixed future lease payments; therefore, fixed CAM is also included in our lease liability. We cannot determine the interest rate implicit in each of our leases. Therefore, we use market and term-specific incremental borrowing rates. Our incremental borrowing rate for a lease is the rate of interest we expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because we do not borrow on a collateralized basis, we consider a combination of factors, including our credit-adjusted risk-free interest rate, the risk profile and funding cost of the specific geographic market of the lease, the lease term and the effect of adjusting the rate to reflect consideration of collateral. Our credit-adjusted risk-free rate takes into consideration interest rates we pay on our unsecured long-term bonds as well as quoted interest rates obtained from financial institutions. Total lease costs recorded as rent and other occupancy costs include fixed operating lease costs, variable lease costs and short-term lease costs. Most of our real estate leases require we pay certain expenses, such as CAM costs, real estate taxes and other executory costs, of which the fixed portion is included in operating lease costs. We recognize operating lease costs on a straight-line basis over the lease term. In addition to the above costs, variable lease costs also include amounts based on a percentage of gross sales in excess of specified levels and are recognized when probable and are not included in determining the present value of our lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. A significant majority of our leases are related to our company-operated stores, and their related costs are recorded within store operating expenses. The ROU asset is measured at the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, initial direct costs, and any tenant improvement allowances received. For operating leases, ROU assets are reduced over the lease term by the recognized straight-line lease expense less the amount of accretion of the lease liability determined using the effective interest method. For finance leases, ROU assets are amortized on a straight-line basis over the shorter of the useful life of the leased asset or the lease term. Interest expense on each finance lease liability is recognized utilizing the effective interest method. ROU assets are tested for impairment in the same manner as long-lived assets. Additionally, we monitor for events or changes in circumstances that may require a reassessment of one of our leases and determine if a remeasurement is required. During the second quarter of fiscal 2020, we received immaterial rent concessions related to COVID-19 company-operated store closures. The components of lease costs (in millions) : Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 29, 2020 Operating lease costs (1) $ 377.4 $ 750.5 Variable lease costs 197.2 426.0 Short-term lease costs 8.3 16.6 Total lease costs $ 582.9 $ 1,193.1 (1) Operating lease costs includes an immaterial amount of sublease income. The following table includes supplemental information (in millions) : Two Quarters Ended Mar 29, 2020 Cash paid related to operating lease liabilities $ 726.0 Operating lease liabilities arising from obtaining ROU assets (1) 506.6 Mar 29, 2020 Weighted-average remaining operating lease term 8.9 years Weighted-average operating lease discount rate 2.5 % (1) Excludes the initial impact of adoption. See Note 1 , Summary of Significant Accounting Policies for additional information. Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued liabilities and other long-term liabilities on the consolidated balance sheet. Finance leases were immaterial as of March 29, 2020. Minimum future maturities of operating lease liabilities (in millions) : Fiscal Year Ending Mar 29, 2020 2020 (excluding the two quarters ended March 29, 2020) $ 739.0 2021 1,425.1 2022 1,314.2 2023 1,187.9 2024 1,052.3 Thereafter 4,296.9 Total lease payments 10,015.4 Less imputed interest (1,111.5) Total $ 8,903.9 As of March 29, 2020, we have entered into operating leases that have not yet commenced of $656.8 million, primarily related to real estate leases. These leases will commence between fiscal year 2020 and fiscal year 2025 with lease terms of 3 years to 20 years. Previous Lease Guidance Disclosures Rent expense under operating lease agreements under the previous lease guidance, which excludes certain amounts required under the new guidance, for the quarter and two quarters ended March 31, 2019 (in millions) |
Equity
Equity | 6 Months Ended |
Mar. 29, 2020 | |
Equity [Abstract] | |
Equity | Equity Changes in AOCI by component, net of tax (in millions) : Quarter Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total March 29, 2020 Net gains/(losses) in AOCI, beginning of period $ 3.2 $ 33.7 $ 7.7 $ (432.0) $ (387.4) Net gains/(losses) recognized in OCI before reclassifications 2.5 (96.7) 43.0 (78.4) (129.6) Net (gains)/losses reclassified from AOCI to earnings (0.1) (1.8) (2.9) — (4.8) Other comprehensive income/(loss) attributable to Starbucks 2.4 (98.5) 40.1 (78.4) (134.4) Net gains/(losses) in AOCI, end of period $ 5.6 $ (64.8) $ 47.8 $ (510.4) $ (521.8) March 31, 2019 Net gains/(losses) in AOCI, beginning of period $ (2.9) $ 17.5 $ 3.3 $ (361.1) $ (343.2) Net gains/(losses) recognized in OCI before reclassifications 2.9 (8.9) 2.2 79.7 75.9 Net (gains)/losses reclassified from AOCI to earnings 0.1 (4.3) — — (4.2) Other comprehensive income/(loss) attributable to Starbucks 3.0 (13.2) 2.2 79.7 71.7 Net gains/(losses) in AOCI, end of period $ 0.1 $ 4.3 $ 5.5 $ (281.4) $ (271.5) Two Quarters Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total March 29, 2020 Net gains/(losses) in AOCI, beginning of period $ 3.9 $ 11.0 $ (10.1) $ (508.1) $ (503.3) Net gains/(losses) recognized in OCI before reclassifications 2.4 (70.9) 60.7 (2.3) (10.1) Net (gains)/losses reclassified from AOCI to earnings — (7.9) (5.3) — (13.2) Other comprehensive income/(loss) attributable to Starbucks 2.4 (78.8) 55.4 (2.3) (23.3) Cumulative effect of accounting adoption (0.7) 3.0 2.5 — 4.8 Net gains/(losses) in AOCI, end of period $ 5.6 $ (64.8) $ 47.8 $ (510.4) $ (521.8) March 31, 2019 Net gains/(losses) in AOCI, beginning of period $ (4.9) $ 17.7 $ 19.6 $ (362.7) $ (330.3) Net gains/(losses) recognized in OCI before reclassifications 4.6 (16.2) (14.1) 81.3 55.6 Net (gains)/losses reclassified from AOCI to earnings 0.4 2.8 — — 3.2 Other comprehensive income/(loss) attributable to Starbucks 5.0 (13.4) (14.1) 81.3 58.8 Net gains/(losses) in AOCI, end of period $ 0.1 $ 4.3 $ 5.5 $ (281.4) $ (271.5) Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions) : Quarter Ended AOCI Amounts Reclassified from AOCI Affected Line Item in Mar 29, 2020 Mar 31, 2019 Gains/(losses) on available-for-sale debt securities $ 0.2 $ 0.2 Interest income and other, net Gains/(losses) on cash flow hedges 2.3 5.6 Please refer to Note 3 , Derivative Financial Instruments for additional information. Gains/(losses) on net investment hedges 3.9 — Interest income and other, net 6.4 5.8 Total before tax (1.6) (1.6) Tax (expense)/benefit $ 4.8 $ 4.2 Net of tax Two Quarters Ended AOCI Amounts Reclassified from AOCI Affected Line Item in Mar 29, 2020 Mar 31, 2019 Gains/(losses) on available-for-sale debt securities $ — $ 0.7 Interest income and other, net Gains/(losses) on cash flow hedges 9.9 (3.0) Please refer to Note 3 , Derivative Financial Instruments for additional information. Gains/(losses) on net investment hedges 7.2 — Interest income and other, net 17.1 (2.3) Total before tax (3.9) (0.9) Tax (expense)/benefit $ 13.2 $ (3.2) Net of tax In addition to 2.4 billion shares of authorized common stock with $0.001 par value per share, the Company has authorized 7.5 million shares of preferred stock, none of which was outstanding as of March 29, 2020. During the two quarters ended March 29, 2020, we repurchased 20.3 million shares of common stock for $1.7 billion. On March 18, 2020, we announced that our Board of Directors authorized the repurchase of up to an additional 40 million shares under our ongoing share repurchase program. As of March 29, 2020, 48.9 million shares remained available for repurchase under current authorizations. On April 8, 2020, we announced a temporary suspension of our share repurchase program. Repurchases pursuant to this program were last made in mid-March. In September 2018, we entered into accelerated share repurchase agreements (“ASR agreements”) with third-party financial institutions totaling $5.0 billion, effective October 1, 2018. We made a $5.0 billion up-front payment to the financial institutions and received an initial delivery of 72.0 million shares. In March 2019, we received an additional 4.9 million shares upon the completion of the program based on a volume-weighted average share price (less discount) of $65.03. During the second quarter of fiscal 2020, our Board of Directors declared a quarterly cash dividend to shareholders of $0.41 per share to be paid on May 22, 2020 to shareholders of record as of the close of business on May 8, 2020. |
Employee Stock Plans
Employee Stock Plans | 6 Months Ended |
Mar. 29, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock Plans | Employee Stock Plans As of March 29, 2020, there were 46.2 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 12.2 million shares available for issuance under our employee stock purchase plan. Stock-based compensation expense recognized in the consolidated statements of earnings (in millions) : Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Options $ 0.7 $ 7.2 $ 2.4 $ 15.5 Restricted Stock Units (“RSUs”) 55.6 87.7 144.2 176.6 Total stock-based compensation expense $ 56.3 $ 94.9 $ 146.6 $ 192.1 Stock option and RSU transactions from September 29, 2019 through March 29, 2020 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, September 29, 2019 15.2 8.9 Granted 0.1 3.7 Options exercised/RSUs vested (1.3) (3.3) Forfeited/expired (0.1) (0.7) Options outstanding/Nonvested RSUs, March 29, 2020 13.9 8.6 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of March 29, 2020 $ 2.5 $ 237.1 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Calculation of net earnings per common share (“EPS”) — basic and diluted ( in millions, except EPS ): Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Net earnings attributable to Starbucks $ 328.4 $ 663.2 $ 1,214.1 $ 1,423.6 Weighted average common shares outstanding (for basic calculation) 1,171.8 1,239.2 1,176.1 1,240.6 Dilutive effect of outstanding common stock options and RSUs 8.9 11.5 9.7 11.5 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,180.7 1,250.7 1,185.8 1,252.1 EPS — basic $ 0.28 $ 0.54 $ 1.03 $ 1.15 EPS — diluted $ 0.28 $ 0.53 $ 1.02 $ 1.14 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 29, 2020 | |
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. On June 22, 2018, the California Office of Environmental Health Hazard Assessment (OEHHA) proposed a new regulation clarifying that cancer warnings are not required for coffee under Proposition 65. The case was set to proceed to a third phase trial on damages, remedies and attorneys' fees on October 15, 2018. However, on October 12, 2018, the California Court of Appeal granted the defendants request for a stay of the Phase 3 trial. On June 3, 2019, the Office of Administrative Law (OAL) approved the coffee exemption regulation. The regulation became effective on October 1, 2019. On June 24, 2019, the Court of Appeal lifted the stay of the litigation. A status conference before the trial judge to discuss the motions that each party has filed is scheduled for May 11, 2020. At this stage of the proceedings, Starbucks believes that the likelihood that the Company will ultimately incur a loss in connection with this litigation is remote. Accordingly, no loss contingency was recorded for this matter. 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 | 6 Months Ended |
Mar. 29, 2020 | |
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. Consolidated revenue mix by product type ( in millions ): Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Beverage (1) $ 3,530.9 59 % $ 3,760.4 60 % $ 7,789.4 59 % $ 7,688.3 60 % Food (2) 1,076.8 18 % 1,157.9 18 % 2,355.7 18 % 2,344.3 18 % Other (3) 1,388.0 23 % 1,387.6 22 % 2,947.7 23 % 2,906.1 22 % Total $ 5,995.7 100 % $ 6,305.9 100 % $ 13,092.8 100 % $ 12,938.7 100 % (1) Beverage represents sales within our company-operated stores. (2) Food includes sales within our company-operated stores as well as products sales to our licensees. (3) “Other” primarily consists of packaged and single-serve coffees and teas, royalty and licensing revenues, serveware, beverage-related ingredients and ready-to-drink beverages, among other items. The table below presents financial information for our reportable operating segments and Corporate and Other segment (in millions) : Quarter Ended Americas International Channel Development Corporate and Other Total March 29, 2020 Total net revenues $ 4,330.0 $ 1,134.6 $ 519.1 $ 12.0 $ 5,995.7 Depreciation and amortization expenses 191.5 130.0 0.3 34.5 356.3 Income from equity investees — 24.8 43.1 — 67.9 Operating income/(loss) $ 621.2 $ (15.4) $ 189.6 $ (308.0) $ 487.4 March 31, 2019 Total net revenues (1) $ 4,314.1 $ 1,529.4 $ 446.6 $ 15.8 $ 6,305.9 Depreciation and amortization expenses 173.0 130.4 12.3 40.5 356.2 Income from equity investees — 22.1 40.2 — 62.3 Operating income/(loss) $ 856.4 $ 201.8 $ 148.9 $ (349.4) $ 857.7 Two Quarters Ended Americas International Channel Development Corporate and Other Total March 29, 2020 Total net revenues $ 9,340.9 $ 2,705.7 $ 1,013.7 $ 32.5 $ 13,092.8 Depreciation and amortization expenses 380.7 256.7 0.6 69.4 707.4 Income from equity investees — 55.8 86.1 — 141.9 Operating income/(loss) $ 1,720.0 $ 260.5 $ 365.1 $ (638.4) $ 1,707.2 March 31, 2019 Total net revenues $ 8,926.6 $ 3,033.5 $ 951.1 $ 27.5 $ 12,938.7 Depreciation and amortization expenses 339.9 257.3 12.4 80.0 689.6 Income from equity investees — 48.5 81.6 — 130.1 Operating income/(loss) $ 1,825.2 $ 431.9 $ 324.6 $ (708.3) $ 1,873.4 (1) Prior period amounts have been restated to reflect the fourth quarter fiscal 2019 realigned Starbucks operating segment reporting structure. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event[placeholder] |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
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) Mar 29, Sep 29, Cash Flow Hedges: Interest rates $ (87.5) $ 0.5 $ 3.1 151 Cross-currency swaps 1.7 (1.4) — 56 Foreign currency - other 26.8 12.9 13.8 36 Coffee (2.0) (1.0) 0.2 21 Dairy (3.8) — (3.8) 8 Net Investment Hedges: Foreign currency 16.0 16.0 — 0 Cross-currency swaps 45.9 — — 114 Foreign currency debt (14.1) (26.1) — 48 |
Pretax Gains and Losses on Derivative Contracts Designated as Hedging Instruments Recognized in OCI and Reclassifications from AOCI to Earnings | Pre-tax gains and losses on derivative contracts and foreign currency-denominated long-term debt designated as hedging instruments recognized in OCI and reclassifications from AOCI to earnings ( in millions ): Quarter Ended Gains/(Losses) Recognized in OCI Before Reclassifications Gains/(Losses) Reclassified from AOCI to Earnings Location of gain/(loss) Mar 29, Mar 31, Mar 29, Mar 31, Cash Flow Hedges: Interest rates $ (140.6) $ (14.9) $ 0.5 $ 1.4 Interest expense Cross-currency swaps 2.9 5.4 (0.4) (0.1) Interest expense 0.2 1.4 Interest income and other, net Foreign currency - other 26.8 (2.9) 0.9 1.3 Licensed stores revenues (1.0) 1.7 Cost of sales 2.0 — Interest income and other, net (1) Coffee (12.1) — — (0.1) Cost of sales Dairy (4.9) — 0.7 — Cost of sales (0.6) — Interest income and other, net (1) Net Investment Hedges: Cross-currency swaps 58.0 — 3.9 — Interest expense Foreign currency debt (0.4) 2.9 — — (1) As a result of the global COVID-19 impacts, Starbucks discontinued cash flow hedges during the quarter ended March 29, 2020. Two Quarters Ended Gains/(Losses) Gains/(Losses) Reclassified from Location of gain/(loss) Mar 29, Mar 31, Mar 29, Mar 31, Cash Flow Hedges: Interest rates $ (120.6) $ (30.6) $ 1.3 $ 2.8 Interest expense Cross-currency swaps 9.1 (2.6) (0.6) (0.5) Interest expense 5.8 (9.9) Interest income and other, net Foreign currency - other 22.1 11.7 2.6 2.7 Licensed stores revenues (1.3) 2.2 Cost of sales 2.0 — Interest income and other, net (1) Coffee (1.1) — — (0.3) Cost of sales Dairy (5.0) — 0.7 — Cost of sales (0.6) — Interest income and other, net (1) Net Investment Hedges: Cross-currency swaps 68.7 — 7.2 — Interest expense Foreign currency debt 12.6 (19.0) — — (1) As a result of the global COVID-19 impacts, Starbucks discontinued cash flow hedges during the quarter ended March 29, 2020. |
Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings | Pre-tax gains and losses on non-designated derivatives and designated fair value hedging instruments and the related fair value hedged item recognized in earnings ( in millions ): Gains/(Losses) Recognized in Earnings Location of gain/(loss) recognized in earnings Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Non-Designated Derivatives: Foreign currency - other Interest income and other, net $ 4.9 $ 0.5 $ 8.3 $ (7.4) Dairy Interest income and other, net — (0.1) — (2.2) Diesel fuel and other commodities Interest income and other, net (8.9) 1.9 (8.0) (4.7) Fair Value Hedges: Interest rate swap Interest expense 35.2 10.1 24.3 26.2 Long-term debt (hedged item) Interest expense (27.5) (11.6) (23.3) (28.5) |
Notional Amounts of Outstanding Derivative Contracts | Notional amounts of outstanding derivative contracts (in millions) : Mar 29, 2020 Sep 29, 2019 Interest rate swap $ 1,750 $ 1,500 Cross-currency swaps 1,004 341 Foreign currency - other 1,120 1,125 Coffee 96 52 Dairy 49 1 Diesel fuel and other commodities 24 17 |
Fair Value of Outstanding Derivative Contracts | Fair value of outstanding derivative contracts ( in millions ) including the location of the asset and/or liability on the consolidated balance sheets: Derivative Assets Balance Sheet Location Mar 29, 2020 Sep 29, 2019 Designated Derivative Instruments: Interest rates Other long-term assets $ — $ 0.1 Cross-currency swaps Other long-term assets 67.6 0.2 Foreign currency - other Prepaid expenses and other current assets 22.7 11.4 Other long-term assets 16.7 7.8 Coffee Prepaid expenses and other current assets 1.0 — Dairy Prepaid expenses and other current assets 1.3 — Interest rate swap Other long-term assets 42.5 18.2 Non-designated Derivative Instruments: Foreign currency Prepaid expenses and other current assets 5.1 1.0 Diesel fuel and other commodities Prepaid expenses and other current assets — 0.2 Derivative Liabilities Balance Sheet Location Mar 29, 2020 Sep 29, 2019 Designated Derivative Instruments: Interest rates Other long-term liabilities $ 67.0 $ 2.6 Cross-currency swaps Other long-term liabilities 6.0 9.7 Foreign currency - other Accrued liabilities 0.1 0.6 Other long-term liabilities 0.4 0.1 Coffee Accrued liabilities 4.5 1.0 Other long-term liabilities 0.1 0.1 Dairy Accrued liabilities 6.9 — Non-designated Derivative Instruments: Foreign currency Accrued liabilities 3.4 3.0 Diesel fuel and other commodities Accrued liabilities 7.4 1.1 |
Derivative Financial Instrume_3
Derivative Financial Instruments Schedule of Interest Rate Swaps (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following amounts were recorded on the consolidated balance sheets related to fixed-to-floating interest rate swaps designated in fair value hedging relationships: Carrying amount of hedged item Cumulative amount of fair value hedging adjustment included in the carrying amount Mar 29, 2020 Sep 29, 2019 Mar 29, 2020 Sep 29, 2019 Location on the balance sheet Long-term debt $ 785.1 $ 761.8 $ 35.1 $ 11.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended | 6 Months Ended |
Dec. 29, 2019 | Mar. 29, 2020 | |
Fair Value Disclosures [Abstract] | ||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Fair Value Measurements at Reporting Date Using Balance at September 29, 2019 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 $ 2,686.6 $ 2,686.6 $ — $ — Short-term investments: Available-for-sale debt securities Commercial paper 0.5 — 0.5 — Corporate debt securities 3.5 — 3.5 — Total available-for-sale debt securities 4.0 — 4.0 — Marketable equity securities 66.5 66.5 — — Total short-term investments 70.5 66.5 4.0 — Prepaid expenses and other current assets: Derivative assets 12.6 — 12.6 — Long-term investments: Available-for-sale debt securities Corporate debt securities 101.2 — 101.2 — Auction rate securities 5.8 — — 5.8 U.S. government treasury securities 106.5 106.5 — — State and local government obligations 4.9 — 4.9 — Mortgage and other asset-backed 1.6 — 1.6 — Total long-term investments 220.0 106.5 107.7 5.8 Other long-term assets: Derivative assets 26.3 — 26.3 — Total assets $ 3,016.0 $ 2,859.6 $ 150.6 $ 5.8 Liabilities: Accrued liabilities: Derivative liabilities $ 5.7 $ 1.1 $ 4.6 $ — Other long-term liabilities: Derivative liabilities 12.5 — 12.5 — Total liabilities $ 18.2 $ 1.1 $ 17.1 $ — | Fair Value Measurements at Reporting Date Using Balance at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 2,572.3 $ 2,572.3 $ — $ — Short-term investments: Available-for-sale debt securities Corporate debt securities 3.1 — 3.1 — Total available-for-sale debt securities 3.1 — 3.1 — Marketable equity securities 49.8 49.8 — — Total short-term investments 52.9 49.8 3.1 — Prepaid expenses and other current assets: Derivative assets 30.1 1.5 28.6 — Long-term investments: Available-for-sale debt securities Corporate debt securities 87.7 — 87.7 — Auction rate securities 5.7 — — 5.7 U.S. government treasury securities 101.5 101.5 — — State and local government obligations 3.6 — 3.6 — Mortgage and other asset-backed securities 0.3 — 0.3 — Total long-term investments 198.8 101.5 91.6 5.7 Other long-term assets: Derivative assets 126.8 — 126.8 — Total assets $ 2,980.9 $ 2,725.1 $ 250.1 $ 5.7 Liabilities: Accrued liabilities: Derivative liabilities $ 22.3 $ 7.7 $ 14.6 $ — Other long-term liabilities: Derivative liabilities 73.5 0.1 73.4 — Total liabilities $ 95.8 $ 7.8 $ 88.0 $ — |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Mar 29, 2020 Sep 29, 2019 Coffee: Unroasted $ 663.3 $ 656.5 Roasted 233.8 276.5 Other merchandise held for sale 309.0 288.0 Packaging and other supplies 286.1 308.4 Total $ 1,492.2 $ 1,529.4 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
Prepaid Expenses and Other Current Assets [Line Items] | |
Prepaid Expenses and Other Current Assets [Table Text Block] | Prepaid Expenses and Other Current Assets Mar 29, 2020 Sep 29, 2019 Income tax receivable $ 390.8 $ 141.1 Other prepaid expenses and current assets 300.7 347.1 Total prepaid expenses and current assets $ 691.5 $ 488.2 |
Property, Plant And Equipment, net | Property, Plant and Equipment, net Mar 29, 2020 Sep 29, 2019 Land $ 46.8 $ 46.8 Buildings 575.9 691.5 Leasehold improvements 8,169.4 7,948.6 Store equipment 2,724.1 2,659.5 Roasting equipment 799.8 769.6 Furniture, fixtures and other 1,881.0 1,799.0 Work in progress 384.1 358.5 Property, plant and equipment, gross 14,581.1 14,273.5 Accumulated depreciation (8,194.1) (7,841.8) Property, plant and equipment, net $ 6,387.0 $ 6,431.7 |
Accrued Liabilities | Mar 29, 2020 Sep 29, 2019 Accrued occupancy costs $ 57.7 $ 176.9 Accrued dividends payable 478.9 485.7 Accrued capital and other operating expenditures 634.9 703.9 Self insurance reserves 233.8 210.5 Accrued business taxes 133.7 176.7 Total accrued liabilities $ 1,539.0 $ 1,753.7 |
Other Intangible Assets and G_2
Other Intangible Assets and Goodwill (Changes in Carrying Amount of Goodwill By Reportable Operating Segment) (Tables) $ in Millions | 6 Months Ended |
Mar. 29, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 3,490.8 |
Other | 2.2 |
Goodwill, ending balance | $ 3,493 |
Schedule of Goodwill [Table Text Block] | Americas International Channel Corporate and Other Total Goodwill balance at September 29, 2019 $ 496.7 $ 2,958.4 $ 34.7 $ 1.0 $ 3,490.8 Other (1) (1.5) 3.7 — — 2.2 Goodwill balance at March 29, 2020 $ 495.2 $ 2,962.1 $ 34.7 $ 1.0 $ 3,493.0 |
Americas Segment [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 496.7 |
Other | (1.5) |
Goodwill, ending balance | 495.2 |
International Segment | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 2,958.4 |
Other | 3.7 |
Goodwill, ending balance | 2,962.1 |
Channel Development [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 34.7 |
Other | 0 |
Goodwill, ending balance | 34.7 |
Corporate and Other [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 1 |
Other | 0 |
Goodwill, ending balance | $ 1 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
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) : Mar 29, 2020 Sep 29, 2019 Stated Interest Rate Effective Interest Rate (1) Issuance Amount Estimated Fair Value Amount Estimated Fair Value November 2020 notes $ 500.0 $ 501 $ 500.0 $ 501 2.200 % 2.228 % February 2021 notes 500.0 501 500.0 500 2.100 % 2.293 % February 2021 notes 250.0 250 250.0 250 2.100 % 1.600 % June 2022 notes 500.0 510 500.0 509 2.700 % 2.819 % March 2023 notes 1,000.0 1,025 1,000.0 1,033 3.100 % 3.107 % October 2023 notes (2) 750.0 801 750.0 798 3.850 % 2.859 % March 2024 notes (3) 775.7 785 788.3 795 0.372 % 0.462 % August 2025 notes 1,250.0 1,368 1,250.0 1,351 3.800 % 3.721 % June 2026 notes 500.0 501 500.0 502 2.450 % 2.511 % March 2027 notes (4) 500.0 486 — — 2.000 % 2.058 % March 2028 notes 600.0 627 600.0 644 3.500 % 3.529 % November 2028 notes 750.0 832 750.0 837 4.000 % 3.958 % August 2029 notes 1,000.0 1,052 1,000.0 1,080 3.550 % 3.871 % March 2030 notes (4) 750.0 706 — — 2.250 % 3.102 % June 2045 notes 350.0 387 350.0 390 4.300 % 4.348 % December 2047 notes 500.0 500 500.0 518 3.750 % 3.765 % November 2048 notes 1,000.0 1,199 1,000.0 1,160 4.500 % 4.504 % August 2049 notes 1,000.0 1,157 1,000.0 1,165 4.450 % 4.433 % March 2050 notes (4) 500.0 508 — — 3.350 % 3.381 % Total 12,975.7 13,696 11,238.3 12,033 Aggregate debt issuance costs and unamortized premium/(discount), net (102.7) (83.1) Hedge accounting fair value adjustment (2) 35.1 11.8 Total $ 12,908.1 $ 11,167.0 (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) Amount includes the change in fair value due to changes in benchmark interest rates related to our October 2023 notes. Refer to Note 3 , Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge. (3) Japanese yen-denominated long-term debt. (4) Issued in March 2020. |
Long-Term Debt Maturities | The following table summarizes our long-term debt maturities as of March 29, 2020 by fiscal year ( in millions ): Fiscal Year Total 2020 $ — 2021 1,250.0 2022 500.0 2023 1,000.0 2024 1,525.7 Thereafter 8,700.0 Total $ 12,975.7 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income by component, net of tax | Equity Changes in AOCI by component, net of tax (in millions) : Quarter Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total March 29, 2020 Net gains/(losses) in AOCI, beginning of period $ 3.2 $ 33.7 $ 7.7 $ (432.0) $ (387.4) Net gains/(losses) recognized in OCI before reclassifications 2.5 (96.7) 43.0 (78.4) (129.6) Net (gains)/losses reclassified from AOCI to earnings (0.1) (1.8) (2.9) — (4.8) Other comprehensive income/(loss) attributable to Starbucks 2.4 (98.5) 40.1 (78.4) (134.4) Net gains/(losses) in AOCI, end of period $ 5.6 $ (64.8) $ 47.8 $ (510.4) $ (521.8) March 31, 2019 Net gains/(losses) in AOCI, beginning of period $ (2.9) $ 17.5 $ 3.3 $ (361.1) $ (343.2) Net gains/(losses) recognized in OCI before reclassifications 2.9 (8.9) 2.2 79.7 75.9 Net (gains)/losses reclassified from AOCI to earnings 0.1 (4.3) — — (4.2) Other comprehensive income/(loss) attributable to Starbucks 3.0 (13.2) 2.2 79.7 71.7 Net gains/(losses) in AOCI, end of period $ 0.1 $ 4.3 $ 5.5 $ (281.4) $ (271.5) Two Quarters Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total March 29, 2020 Net gains/(losses) in AOCI, beginning of period $ 3.9 $ 11.0 $ (10.1) $ (508.1) $ (503.3) Net gains/(losses) recognized in OCI before reclassifications 2.4 (70.9) 60.7 (2.3) (10.1) Net (gains)/losses reclassified from AOCI to earnings — (7.9) (5.3) — (13.2) Other comprehensive income/(loss) attributable to Starbucks 2.4 (78.8) 55.4 (2.3) (23.3) Cumulative effect of accounting adoption (0.7) 3.0 2.5 — 4.8 Net gains/(losses) in AOCI, end of period $ 5.6 $ (64.8) $ 47.8 $ (510.4) $ (521.8) March 31, 2019 Net gains/(losses) in AOCI, beginning of period $ (4.9) $ 17.7 $ 19.6 $ (362.7) $ (330.3) Net gains/(losses) recognized in OCI before reclassifications 4.6 (16.2) (14.1) 81.3 55.6 Net (gains)/losses reclassified from AOCI to earnings 0.4 2.8 — — 3.2 Other comprehensive income/(loss) attributable to Starbucks 5.0 (13.4) (14.1) 81.3 58.8 Net gains/(losses) in AOCI, end of period $ 0.1 $ 4.3 $ 5.5 $ (281.4) $ (271.5) |
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 Mar 29, 2020 Mar 31, 2019 Gains/(losses) on available-for-sale debt securities $ 0.2 $ 0.2 Interest income and other, net Gains/(losses) on cash flow hedges 2.3 5.6 Please refer to Note 3 , Derivative Financial Instruments for additional information. Gains/(losses) on net investment hedges 3.9 — Interest income and other, net 6.4 5.8 Total before tax (1.6) (1.6) Tax (expense)/benefit $ 4.8 $ 4.2 Net of tax Two Quarters Ended AOCI Amounts Reclassified from AOCI Affected Line Item in Mar 29, 2020 Mar 31, 2019 Gains/(losses) on available-for-sale debt securities $ — $ 0.7 Interest income and other, net Gains/(losses) on cash flow hedges 9.9 (3.0) Please refer to Note 3 , Derivative Financial Instruments for additional information. Gains/(losses) on net investment hedges 7.2 — Interest income and other, net 17.1 (2.3) Total before tax (3.9) (0.9) Tax (expense)/benefit $ 13.2 $ (3.2) Net of tax |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense Recognized in Consolidated Statements of Earnings | Stock-based compensation expense recognized in the consolidated statements of earnings (in millions) : Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Options $ 0.7 $ 7.2 $ 2.4 $ 15.5 Restricted Stock Units (“RSUs”) 55.6 87.7 144.2 176.6 Total stock-based compensation expense $ 56.3 $ 94.9 $ 146.6 $ 192.1 |
Stock Option and RSU Transactions | Stock option and RSU transactions from September 29, 2019 through March 29, 2020 ( in millions ): Stock Options RSUs Options outstanding/Nonvested RSUs, September 29, 2019 15.2 8.9 Granted 0.1 3.7 Options exercised/RSUs vested (1.3) (3.3) Forfeited/expired (0.1) (0.7) Options outstanding/Nonvested RSUs, March 29, 2020 13.9 8.6 Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of March 29, 2020 $ 2.5 $ 237.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Net Earnings Per Common Share (EPS) - Basic and Diluted | Calculation of net earnings per common share (“EPS”) — basic and diluted ( in millions, except EPS ): Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Net earnings attributable to Starbucks $ 328.4 $ 663.2 $ 1,214.1 $ 1,423.6 Weighted average common shares outstanding (for basic calculation) 1,171.8 1,239.2 1,176.1 1,240.6 Dilutive effect of outstanding common stock options and RSUs 8.9 11.5 9.7 11.5 Weighted average common and common equivalent shares outstanding (for diluted calculation) 1,180.7 1,250.7 1,185.8 1,252.1 EPS — basic $ 0.28 $ 0.54 $ 1.03 $ 1.15 EPS — diluted $ 0.28 $ 0.53 $ 1.02 $ 1.14 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Mar. 29, 2020 | |
Revenue from External Customer [Line Items] | |
Revenue from External Customers by Products and Services [Table Text Block] | Consolidated revenue mix by product type ( in millions ): Quarter Ended Two Quarters Ended Mar 29, 2020 Mar 31, 2019 Mar 29, 2020 Mar 31, 2019 Beverage (1) $ 3,530.9 59 % $ 3,760.4 60 % $ 7,789.4 59 % $ 7,688.3 60 % Food (2) 1,076.8 18 % 1,157.9 18 % 2,355.7 18 % 2,344.3 18 % Other (3) 1,388.0 23 % 1,387.6 22 % 2,947.7 23 % 2,906.1 22 % Total $ 5,995.7 100 % $ 6,305.9 100 % $ 13,092.8 100 % $ 12,938.7 100 % (1) Beverage represents sales within our company-operated stores. (2) Food includes sales within our company-operated stores as well as products sales to our licensees. (3) “Other” primarily consists of packaged and single-serve coffees and teas, royalty and licensing revenues, serveware, beverage-related ingredients and ready-to-drink beverages, among other items. |
Financial Information For Reportable Operating Segments And All Other Segments | The table below presents financial information for our reportable operating segments and Corporate and Other segment (in millions) : Quarter Ended Americas International Channel Development Corporate and Other Total March 29, 2020 Total net revenues $ 4,330.0 $ 1,134.6 $ 519.1 $ 12.0 $ 5,995.7 Depreciation and amortization expenses 191.5 130.0 0.3 34.5 356.3 Income from equity investees — 24.8 43.1 — 67.9 Operating income/(loss) $ 621.2 $ (15.4) $ 189.6 $ (308.0) $ 487.4 March 31, 2019 Total net revenues (1) $ 4,314.1 $ 1,529.4 $ 446.6 $ 15.8 $ 6,305.9 Depreciation and amortization expenses 173.0 130.4 12.3 40.5 356.2 Income from equity investees — 22.1 40.2 — 62.3 Operating income/(loss) $ 856.4 $ 201.8 $ 148.9 $ (349.4) $ 857.7 Two Quarters Ended Americas International Channel Development Corporate and Other Total March 29, 2020 Total net revenues $ 9,340.9 $ 2,705.7 $ 1,013.7 $ 32.5 $ 13,092.8 Depreciation and amortization expenses 380.7 256.7 0.6 69.4 707.4 Income from equity investees — 55.8 86.1 — 141.9 Operating income/(loss) $ 1,720.0 $ 260.5 $ 365.1 $ (638.4) $ 1,707.2 March 31, 2019 Total net revenues $ 8,926.6 $ 3,033.5 $ 951.1 $ 27.5 $ 12,938.7 Depreciation and amortization expenses 339.9 257.3 12.4 80.0 689.6 Income from equity investees — 48.5 81.6 — 130.1 Operating income/(loss) $ 1,825.2 $ 431.9 $ 324.6 $ (708.3) $ 1,873.4 (1) Prior period amounts have been restated to reflect the fourth quarter fiscal 2019 realigned Starbucks operating segment reporting structure. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 29, 2020 | Sep. 30, 2019 | Sep. 29, 2019 | |
Goodwill [Line Items] | |||||
Goodwill | $ 3,493 | $ 3,490.8 | |||
Operating Lease, Right-of-Use Asset | 8,260.8 | 0 | |||
Retained Earnings (Accumulated Deficit) | (7,050.6) | (5,771.2) | |||
Operating Lease, Liability, Noncurrent | 7,650.4 | 0 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
store occupancy cost | $ 591.8 | $ 1,200 | |||
Operating Lease, Liability, Noncurrent | 7,650.4 | 0 | |||
Retained Earnings (Accumulated Deficit) | $ (7,050.6) | $ (5,771.2) | |||
Accounting Standards Update 2016-02 [Member] | |||||
Goodwill [Line Items] | |||||
Operating Lease, Right-of-Use Asset | $ 8,400 | ||||
Retained Earnings (Accumulated Deficit) | 17.3 | ||||
Operating Lease, Liability, Noncurrent | 9,000 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Liability, Noncurrent | 9,000 | ||||
Retained Earnings (Accumulated Deficit) | 17.3 | ||||
Deferred Rent Credit | $ 568 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 29, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 8,260.8 | $ 8,260.8 | $ 0 | |||
Deferred Tax Assets, Net, Noncurrent | 1,709.7 | 1,709.7 | 1,765.8 | |||
Income Tax Expense (Benefit) | $ 65.4 | $ 161.2 | $ 324 | $ 366.4 | ||
Earnings per share - diluted | $ 0.28 | $ 0.53 | $ 1.02 | $ 1.14 | ||
Earnings Per Share, Basic | $ 0.28 | $ 0.54 | $ 1.03 | $ 1.15 | ||
Deferred Revenue, Noncurrent | $ 6,685.5 | $ 6,685.5 | 6,744.4 | |||
Deferred Tax and Other Liabilities, Noncurrent | 751.4 | 751.4 | 1,370.5 | |||
Retained Earnings (Accumulated Deficit) | (7,050.6) | (7,050.6) | $ (5,771.2) | |||
store occupancy cost | $ 591.8 | $ 1,200 | ||||
Deferred Tax Assets, Net | 1,700 | 1,700 | ||||
PAYROLL TAX INCENTIVES | 35 | |||||
Foreign jurisdiction [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred Tax Assets, Net | $ 100 | $ 100 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 8,400 | |||||
Retained Earnings (Accumulated Deficit) | $ 17.3 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | Dec. 29, 2019 | Sep. 29, 2019 | |
Deferred Revenue, Current | $ 1,436.3 | $ 1,436.3 | $ 1,269 | |||
Deferred Revenue, Noncurrent | 6,685.5 | 6,685.5 | 6,744.4 | |||
Deferred Revenue, Revenue Recognized | 44.2 | $ 43.7 | 88.4 | $ 87.8 | ||
Nestle Global Coffee Alliance [Member] | ||||||
Deferred Revenue, Current | 176.5 | 176.5 | ||||
Deferred Revenue, Noncurrent | 6,600 | 6,600 | ||||
Revenue Recognition Period Stored Value Cards and Loyalty Program Breakage [Member] | ||||||
Deferred Revenue, Current | 1,191.5 | 1,191.5 | ||||
Deferred Revenue, Revenue Recognized | (2,736.4) | 5,798.3 | ||||
Deferred Revenue, Additions | 2,453.6 | 5,961.1 | ||||
Deferred Revenue, Other | (5.1) | (3.4) | ||||
Deferred Revenue | $ 1,273.1 | $ 1,273.1 | $ 1,561 | $ 1,113.7 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 29, 2020 | Sep. 29, 2019 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,493 | $ 3,490.8 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 709.4 | 603 | |
Starbucks Coffee Thailand [Member] | |||
Business Acquisition [Line Items] | |||
Deconsolidation, Gain (Loss), Amount | $ 601.9 | ||
Acquired and reacquired rights | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 637.2 | $ 537.2 |
Acquisitions and Divestitures D
Acquisitions and Divestitures Definite-lived intangible assets acquired (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 1,183.9 | $ 1,181.4 |
Finite-Lived Intangible Assets, Accumulated Amortization | 709.4 | 603 |
Finite-Lived Intangible Assets, Net | 474.5 | 578.4 |
Acquired and reacquired rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,076.9 | 1,075 |
Finite-Lived Intangible Assets, Accumulated Amortization | 637.2 | 537.2 |
Finite-Lived Intangible Assets, Net | $ 439.7 | $ 537.8 |
Derivative Financial Instrume_4
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 | |
Mar. 29, 2020 | Sep. 29, 2019 | |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (87.5) | $ 0.5 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 3.1 | |
Outstanding Contract Remaining Maturity (Months) | 151 months | |
Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 1.7 | (1.4) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 56 months | |
Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 26.8 | 12.9 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 13.8 | |
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 | $ (2) | (1) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0.2 | |
Outstanding Contract Remaining Maturity (Months) | 21 months | |
Cash Flow Hedging [Member] | Dairy Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ (3.8) | 0 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ (3.8) | |
Outstanding Contract Remaining Maturity (Months) | 8 months | |
Net Investment Hedging [Member] | Cross-Currency Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gains/(Losses) Included in AOCI | $ 45.9 | 0 |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 114 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 |
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 | $ (14.1) | $ (26.1) |
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | $ 0 | |
Outstanding Contract Remaining Maturity (Months) | 48 months |
Derivative Financial Instrume_5
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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | Sep. 29, 2019 | |
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Recognized in OCI Before Reclassifications | $ (127.9) | $ (12.4) | $ (95.5) | $ (21.5) | |
Net Investment Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 57.6 | 2.9 | 81.3 | (19) | |
Net Investment Hedging [Member] | Cross-Currency Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives used in Net Investment Hedge, Net of Tax | 45.9 | 45.9 | $ 0 | ||
Net Investment Hedging [Member] | Foreign Currency Contract - Other [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives used in Net Investment Hedge, Net of Tax | 16 | 16 | 16 | ||
Net Investment Hedging [Member] | ForeignExchangeYenDebt [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives used in Net Investment Hedge, Net of Tax | (14.1) | (14.1) | $ (26.1) | ||
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 | (140.6) | (14.9) | (120.6) | (30.6) | |
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 | 2.9 | 5.4 | 9.1 | (2.6) | |
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 | 26.8 | (2.9) | 22.1 | 11.7 | |
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 | (12.1) | 0 | (1.1) | 0 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Dairy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Recognized in OCI Before Reclassifications | (4.9) | 0 | (5) | 0 | |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Cross-Currency Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Recognized in OCI Before Reclassifications | 58 | 0 | 68.7 | 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 | (0.4) | 2.9 | 12.6 | (19) | |
Gains/(Losses) Reclassified from AOCI to Earnings | 0 | 0 | 0 | 0 | |
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | 0.5 | 1.4 | 1.3 | 2.8 | |
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | (0.4) | (0.1) | (0.6) | (0.5) | |
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Cross-Currency Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | 3.9 | 0 | 7.2 | 0 | |
Interest and Other Income [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cross-Currency Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | 0.2 | 1.4 | 5.8 | (9.9) | |
Interest and Other Income [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | 2 | 0 | 2 | 0 | |
Interest and Other Income [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Dairy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | (0.6) | 0 | (0.6) | 0 | |
Franchised Units Revenue [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | 0.9 | 1.3 | 2.6 | 2.7 | |
Cost of Goods and Services Sold [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Contract - Other [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | (1) | 1.7 | (1.3) | 2.2 | |
Cost of Goods and Services Sold [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Coffee Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | 0 | (0.1) | 0 | (0.3) | |
Cost of Goods and Services Sold [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Dairy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(Losses) Reclassified from AOCI to Earnings | $ 0.7 | $ 0 | $ 0.7 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Interest and Other Income [Member] | Foreign Currency Contract - Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | $ 4.9 | $ 0.5 | $ 8.3 | $ (7.4) |
Interest and Other Income [Member] | Dairy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | 0 | (0.1) | 0 | (2.2) |
Interest and Other Income [Member] | Diesel and Other Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) Recognized in Earnings | (8.9) | 1.9 | (8) | (4.7) |
Interest Expense [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 35.2 | 10.1 | 24.3 | 26.2 |
Interest Expense [Member] | Long-term Debt [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (27.5) | $ (11.6) | $ (23.3) | $ (28.5) |
Derivative and Financial Instru
Derivative and Financial Instruments (Notional Amounts of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,750 | $ 1,500 |
Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,004 | 341 |
Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,120 | 1,125 |
Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 96 | 52 |
Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 49 | 1 |
Diesel and Other Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 24 | $ 17 |
Derivative Financial Instrume_7
Derivative Financial Instruments Derivative Financial Instruments (Fair Value of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Other Long-Term Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | $ 0 | $ 0.1 |
Other Long-Term Assets [Member] | Designated as Hedging Instrument [Member] | Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 67.6 | 0.2 |
Other Long-Term Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 16.7 | 7.8 |
Other Long-Term Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 42.5 | 18.2 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 22.7 | 11.4 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 1 | 0 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 1.3 | 0 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 5.1 | 1 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Diesel and Other Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0.2 |
Other Long-Term Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 67 | 2.6 |
Other Long-Term Liabilities [Member] | Designated as Hedging Instrument [Member] | Cross-Currency Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 6 | 9.7 |
Other Long-Term Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 0.4 | 0.1 |
Other Long-Term Liabilities [Member] | Designated as Hedging Instrument [Member] | Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 0.1 | 0.1 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 0.1 | 0.6 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Coffee Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 4.5 | 1 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Dairy Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 6.9 | 0 |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Contract - Other [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | 3.4 | 3 |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Diesel and Other Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Liabilities | $ 7.4 | $ 1.1 |
Derivative Financial Instrume_8
Derivative Financial Instruments Interest Rate Swaps (Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position) (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - Other Noncurrent Liabilities [Member] - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 785.1 | $ 761.8 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 35.1 | $ 11.8 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Assets: | ||
Total short-term investments | $ 52.9 | $ 70.5 |
Total Assets | 2,980.9 | 3,016 |
Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 95.8 | 18.2 |
Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 2,572.3 | 2,686.6 |
Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 3.1 | 4 |
Equity Securities, FV-NI | 49.8 | 66.5 |
Total short-term investments | 52.9 | 70.5 |
Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets, current | 30.1 | 12.6 |
Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 198.8 | 220 |
Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets, Noncurrent | 126.8 | 26.3 |
Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Current | 22.3 | 5.7 |
Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Noncurrent | 73.5 | 12.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Total Assets | 2,725.1 | 2,859.6 |
Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 7.8 | 1.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 2,572.3 | 2,686.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Equity Securities, FV-NI | 49.8 | 66.5 |
Total short-term investments | 49.8 | 66.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets, current | 1.5 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 101.5 | 106.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets, Noncurrent | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Current | 7.7 | 1.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Noncurrent | 0.1 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total Assets | 250.1 | 150.6 |
Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 88 | 17.1 |
Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 3.1 | 4 |
Equity Securities, FV-NI | 0 | 0 |
Total short-term investments | 3.1 | 4 |
Significant Other Observable Inputs (Level 2) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets, current | 28.6 | 12.6 |
Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 91.6 | 107.7 |
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets, Noncurrent | 126.8 | 26.3 |
Significant Other Observable Inputs (Level 2) [Member] | Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Current | 14.6 | 4.6 |
Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Noncurrent | 73.4 | 12.5 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Total Assets | 5.7 | 5.8 |
Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 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: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Equity Securities, FV-NI | 0 | 0 |
Total short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Derivative assets, current | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 5.7 | 5.8 |
Significant Unobservable Inputs (Level 3) [Member] | Other Long-Term Assets [Member] | ||
Assets: | ||
Derivative assets, Noncurrent | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Accrued Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Current | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Other Long-Term Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities, Noncurrent | 0 | 0 |
Commercial Paper [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0.5 | |
Commercial Paper [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | |
Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0.5 | |
Commercial Paper [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 3.1 | 3.5 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 87.7 | 101.2 |
Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 3.1 | 3.5 |
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 87.7 | 101.2 |
Corporate Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
U.S. Government Treasury Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 101.5 | 106.5 |
U.S. Government Treasury Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 101.5 | 106.5 |
U.S. Government Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
U.S. Government Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
State and Local Government Obligations [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 3.6 | 4.9 |
State and Local Government Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
State and Local Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 3.6 | 4.9 |
State and Local Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Auction Rate Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 5.7 | 5.8 |
Auction Rate Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Auction Rate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Auction Rate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 5.7 | 5.8 |
Mortgage and Other Asset-backed Securities [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0.3 | 1.6 |
Mortgage and Other Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Mortgage and Other Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | 0.3 | 1.6 |
Mortgage and Other Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Long-term Investments [Member] | ||
Assets: | ||
Debt Securities, Available-for-sale | $ 0 | $ 0 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2020USD ($) | |
Inventory [Line Items] | |
Inventory Write-down | $ 50 |
Fixed-price Contract [Member] | |
Inventory [Line Items] | |
Amount of coffee committed to be purchased | 861 |
Price-to-be-fixed Contract [Member] | |
Inventory [Line Items] | |
Amount of coffee committed to be purchased | $ 463 |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Inventory Disclosure [Abstract] | ||
Unroasted coffee | $ 663.3 | $ 656.5 |
Roasted Coffee Inventory | 233.8 | 276.5 |
Other merchandise held for sale | 309 | 288 |
Retail Related Inventory, Packaging and Other Supplies | 286.1 | 308.4 |
Total | $ 1,492.2 | $ 1,529.4 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Property, Plant And Equipment, net) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,581.1 | $ 14,273.5 |
Accumulated depreciation | (8,194.1) | (7,841.8) |
Property, plant and equipment, net | 6,387 | 6,431.7 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46.8 | 46.8 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 575.9 | 691.5 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,169.4 | 7,948.6 |
Store Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,724.1 | 2,659.5 |
Roasting Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 799.8 | 769.6 |
Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,881 | 1,799 |
Work in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 384.1 | $ 358.5 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information (Accrued Liabilities) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued occupancy costs | $ 57.7 | $ 176.9 |
Accrued dividends payable | 478.9 | 485.7 |
Accrued capital and other operating expenditures | 634.9 | 703.9 |
Insurance reserves | 233.8 | 210.5 |
Accrued Income Taxes | 133.7 | 176.7 |
Total accrued liabilities | $ 1,539 | $ 1,753.7 |
Other Intangible Assets and G_3
Other Intangible Assets and Goodwill (Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Sep. 29, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 3,493 | $ 3,490.8 | |
Goodwill impairments | 0 | $ (5.4) | |
Goodwill, Other Increase (Decrease) | $ 2.2 | ||
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | (in millions) Mar 29, 2020 Sep 29, 2019 Trade names, trademarks and patents $ 204.2 $ 203.4 | ||
Trade Names, Trademarks and Patents [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 204.2 | 203.4 | |
Americas Segment [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 495.2 | 496.7 | |
Goodwill, Other Increase (Decrease) | (1.5) | ||
International Segment | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 2,962.1 | 2,958.4 | |
Goodwill, Other Increase (Decrease) | 3.7 | ||
Channel Development [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 34.7 | 34.7 | |
Goodwill, Other Increase (Decrease) | 0 | ||
Corporate and Other [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 1 | $ 1 | |
Goodwill, Other Increase (Decrease) | $ 0 |
Other Intangible Assets and G_4
Other Intangible Assets and Goodwill (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | Sep. 29, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Mar 29, 2020 Sep 29, 2019 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired and reacquired rights $ 1,076.9 $ (637.2) $ 439.7 $ 1,075.0 $ (537.2) $ 537.8 Acquired trade secrets and processes 27.6 (20.6) 7.0 27.6 (19.2) 8.4 Trade names, trademarks and patents 41.3 (24.5) 16.8 40.6 (22.9) 17.7 Licensing agreements 15.9 (13.2) 2.7 16.2 (12.2) 4.0 Other finite-lived intangible assets 22.2 (13.9) 8.3 22.0 (11.5) 10.5 Total finite-lived intangible assets $ 1,183.9 $ (709.4) $ 474.5 $ 1,181.4 $ (603.0) $ 578.4 | ||||
Finite-Lived Intangible Assets, Gross | $ 1,183.9 | $ 1,183.9 | $ 1,181.4 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 709.4 | 709.4 | 603 | ||
Finite-Lived Intangible Assets, Net | 474.5 | 474.5 | 578.4 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 54.5 | $ 68.7 | 108.6 | $ 123.1 | |
Acquired and reacquired rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 1,076.9 | 1,076.9 | 1,075 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 637.2 | 637.2 | 537.2 | ||
Finite-Lived Intangible Assets, Net | 439.7 | 439.7 | 537.8 | ||
Acquired trade secrets and processes [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 27.6 | 27.6 | 27.6 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 20.6 | 20.6 | 19.2 | ||
Finite-Lived Intangible Assets, Net | 7 | 7 | 8.4 | ||
Trade Names, Trademarks and Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 41.3 | 41.3 | 40.6 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 24.5 | 24.5 | 22.9 | ||
Finite-Lived Intangible Assets, Net | 16.8 | 16.8 | 17.7 | ||
Licensing Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 15.9 | 15.9 | 16.2 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 13.2 | 13.2 | 12.2 | ||
Finite-Lived Intangible Assets, Net | 2.7 | 2.7 | 4 | ||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 22.2 | 22.2 | 22 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 13.9 | 13.9 | 11.5 | ||
Finite-Lived Intangible Assets, Net | $ 8.3 | $ 8.3 | $ 10.5 |
Other Intangible Assets and G_5
Other Intangible Assets and Goodwill (Estimated Future Amortization Expense) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 29, 2020 | Sep. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Ending Total 2020 (excluding the two quarters ended March 29, 2020) $ 107.6 2021 195.7 2022 161.4 2023 2.8 2024 2.2 Thereafter 4.8 Total estimated future amortization expense $ 474.5 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 107.6 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 195.7 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 161.4 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2.8 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2.2 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 4.8 | |
Finite-Lived Intangible Assets, Net | 474.5 | $ 578.4 |
Goodwill [Line Items] | ||
Goodwill | $ 3,493 | $ 3,490.8 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 29, 2020 | Sep. 29, 2019 | |
Debt Instrument [Line Items] | ||
Short-term Debt | $ 1,107.1 | $ 0 |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt | $ 1,100 | |
Two Point Two Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.20% | |
Debt Instrument, Face Amount | $ 500 | 500 |
Two Point Two Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.75% | |
Debt Instrument, Face Amount | $ 500 | 500 |
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 0.372% | |
Debt Instrument, Face Amount | $ 775.7 | 788.3 |
Three Point One Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.50% | |
Debt Instrument, Face Amount | $ 600 | $ 600 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt covenant compliance | 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 March 29, 2020, we were in compliance with all applicable covenants. |
(Components of Long-Term Debt I
(Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values) (Details) - USD ($) $ in Millions | Mar. 29, 2020 | Sep. 29, 2019 |
Debt Instrument [Line Items] | ||
Total | $ 12,975.7 | $ 11,238.3 |
Total, Estimated Fair Value | 13,696 | 12,033 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (102.7) | (83.1) |
Hedging Liabilities, Noncurrent | 35.1 | 11.8 |
Total, Carrying Value, net of aggregate unamortized discount | 12,908.1 | 11,167 |
Two Point Two Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 500 | 500 |
Stated Interest Rate | 2.20% | |
Effective Interest Rate | 2.228% | |
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 One Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | 1,000 |
Stated Interest Rate | 3.10% | |
Effective Interest Rate | 3.107% | |
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% | |
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 775.7 | 788.3 |
Stated Interest Rate | 0.372% | |
Effective Interest Rate | 0.462% | |
Three Point Eight Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,250 | 1,250 |
Stated Interest Rate | 3.80% | |
Effective Interest Rate | 3.721% | |
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 | 600 |
Stated Interest Rate | 3.50% | |
Effective Interest Rate | 3.529% | |
Four Point Zero Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 750 | 750 |
Stated Interest Rate | 4.00% | |
Effective Interest Rate | 3.958% | |
Three Point Five Five Percentage Senior Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | 1,000 |
Stated Interest Rate | 3.55% | |
Effective Interest Rate | 3.871% | |
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 | 500 |
Stated Interest Rate | 3.75% | |
Effective Interest Rate | 3.765% | |
Four Point Five Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | 1,000 |
Stated Interest Rate | 4.50% | |
Effective Interest Rate | 4.504% | |
Four Point Four Five Percentage Senior Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | 1,000 |
Stated Interest Rate | 4.45% | |
Effective Interest Rate | 4.433% | |
Three Point Three Five Percentage Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 500 | 0 |
Stated Interest Rate | 3.35% | |
Effective Interest Rate | 3.381% | |
Two Point Zero Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 500 | 0 |
Stated Interest Rate | 2.00% | |
Effective Interest Rate | 2.058% | |
Two Point Two Five Percentage Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 750 | 0 |
Stated Interest Rate | 2.25% | |
Effective Interest Rate | 3.102% | |
Fair Value, Inputs, Level 2 [Member] | Two Point Two Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 501 | 501 |
Fair Value, Inputs, Level 2 [Member] | Two Point One Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 501 | 500 |
Estimated Fair Value from Reopening of Previous Issuance | 250 | 250 |
Fair Value, Inputs, Level 2 [Member] | Two Point Seven Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 510 | 509 |
Fair Value, Inputs, Level 2 [Member] | Three Point One Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 1,025 | 1,033 |
Fair Value, Inputs, Level 2 [Member] | Three Point Eight Five Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 801 | 798 |
Fair Value, Inputs, Level 2 [Member] | PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 785 | 795 |
Fair Value, Inputs, Level 2 [Member] | Three Point Eight Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 1,368 | 1,351 |
Fair Value, Inputs, Level 2 [Member] | Two Point Four Five Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 501 | 502 |
Fair Value, Inputs, Level 2 [Member] | Three Point Five Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 627 | 644 |
Fair Value, Inputs, Level 2 [Member] | Four Point Zero Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 832 | 837 |
Fair Value, Inputs, Level 2 [Member] | Three Point Five Five Percentage Senior Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 1,052 | 1,080 |
Fair Value, Inputs, Level 2 [Member] | Four Point Three Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 387 | 390 |
Fair Value, Inputs, Level 2 [Member] | Three Point Seven Five Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 500 | 518 |
Fair Value, Inputs, Level 2 [Member] | Four Point Five Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 1,199 | 1,160 |
Fair Value, Inputs, Level 2 [Member] | Four Point Four Five Percentage Senior Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 1,157 | 1,165 |
Fair Value, Inputs, Level 2 [Member] | Three Point Three Five Percentage Senior Notes | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 508 | 0 |
Fair Value, Inputs, Level 2 [Member] | Two Point Zero Percentage Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 486 | 0 |
Fair Value, Inputs, Level 2 [Member] | Two Point Two Five Percentage Senior Notes | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 706 | $ 0 |
Debt (Summary of long-term debt
Debt (Summary of long-term debt maturities) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 29, 2020 | Sep. 29, 2019 | |
Short-term Debt [Line Items] | ||
2020 | $ 0 | |
2021 | 1,250 | |
2022 | 500 | |
2023 | 1,000 | |
2024 | 1,525.7 | |
Thereafter | 8,700 | |
Total | 12,975.7 | $ 11,238.3 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Maximum allowable amount under Commercial Paper Program | $ 3,000 | |
Maximum [Member] | Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Maximum allowable maturity period of credit under Commercial Paper Program | 397 days |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Mar. 29, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, amount | $ 656.8 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, term of contract | 3 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, term of contract | 20 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 29, 2020 | Mar. 29, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 377.4 | $ 750.5 |
Finance lease cost: | ||
Variable lease costs | 197.2 | 426 |
Short-term lease costs | 8.3 | 16.6 |
Total lease costs | $ 582.9 | $ 1,193.1 |
Leases - Schedule of Cash Flow,
Leases - Schedule of Cash Flow, Supplemental Disclosures (Details) $ in Millions | 6 Months Ended |
Mar. 29, 2020USD ($) | |
Leases [Abstract] | |
Cash paid related to operating lease liabilities | $ 726 |
Operating lease liabilities arising from obtaining ROU assets | 2.50% |
Weighted-average remaining operating lease term | 8 years 10 months 24 days |
Weighted-average operating lease discount rate | $ 506.6 |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating Lease Payments (Details) $ in Millions | Mar. 29, 2020USD ($) |
Leases [Abstract] | |
2020 (excluding the two quarters ended March 29, 2020) | $ 739 |
2021 | 1,425.1 |
2022 | 1,314.2 |
2023 | 1,187.9 |
2024 | 1,052.3 |
Thereafter | 4,296.9 |
Total lease payments | 10,015.4 |
Less imputed interest | (1,111.5) |
Total | $ 8,903.9 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Minimum rent | $ 366.2 | $ 717 |
Contingent rent | 56.3 | 112 |
Total | $ 422.5 | $ 829 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments (Details) $ in Millions | Sep. 29, 2019USD ($) |
Operating Leases | |
2020 | $ 1,432.9 |
2021 | 1,342.2 |
2022 | 1,247.4 |
2023 | 1,124.3 |
2024 | 996.4 |
Thereafter | 4,087.7 |
Total minimum lease payments | 10,230.9 |
Lease Financing Arrangements | |
2020 | 5.2 |
2021 | 5.2 |
2022 | 5 |
2023 | 5 |
2024 | 4.9 |
Thereafter | 42.6 |
Total minimum lease payments | $ 67.9 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | May 22, 2020 | May 08, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Jun. 30, 2019 | Mar. 18, 2020 | Sep. 29, 2019 | Mar. 20, 2019 | Oct. 02, 2018 | Sep. 30, 2018 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Authorized shares of common stock | 2,400,000,000 | 2,400,000,000 | ||||||||
Par value of common stock | $ 0.001 | $ 0.001 | ||||||||
Authorized shares of preferred stock | 7,500,000 | |||||||||
Outstanding shares of preferred stock | 0 | |||||||||
Shares available for repurchase | 48,900,000 | |||||||||
Dividends payable, payment date | May 22, 2020 | |||||||||
Dividends payable, record date | May 8, 2020 | |||||||||
September ASR [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Other Commitment | $ 5,000 | |||||||||
Up-Front Payment Under Accelerated Share Repurchase Program | $ 5,000 | |||||||||
Accelerated Share Repurchase, Completion Date | March 2019 | |||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 65.03 | |||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt, Shares | 4,900,000 | 72,000,000 | ||||||||
Open Market [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Shares of common stock repurchased | 20,300,000 | |||||||||
Total cost of common stock repurchased | $ 1,700 | |||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 40,000,000 |
Equity (Components Of Accumulat
Equity (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | Dec. 29, 2019 | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (7,532.9) | $ (5,035.2) | $ (7,532.9) | $ (5,035.2) | $ (6,759.1) | $ (6,231) | $ (2,878.8) | $ 1,175.8 |
Net gains/(losses) in AOCI, beginning of period | (503.3) | |||||||
Other comprehensive income/(loss) | (134.4) | 71.7 | (23.3) | 58.8 | ||||
Net gains/(losses) in AOCI, end of period | (521.8) | (521.8) | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 17.3 | 495.6 | 17.3 | 495.6 | ||||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5.6 | 0.1 | 5.6 | 0.1 | 3.2 | 3.9 | (2.9) | (4.9) |
Net gains/(losses) recognized in OCI before reclassifications | 2.5 | 2.9 | 2.4 | 4.6 | ||||
Net (gains)/losses reclassified from AOCI to earnings | (0.1) | 0.1 | 0 | 0.4 | ||||
Other comprehensive income/(loss) | 2.4 | 3 | 2.4 | 5 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (0.7) | (0.7) | ||||||
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 | (64.8) | 4.3 | (64.8) | 4.3 | 33.7 | 11 | 17.5 | 17.7 |
Net gains/(losses) recognized in OCI before reclassifications | (96.7) | (8.9) | (70.9) | (16.2) | ||||
Net (gains)/losses reclassified from AOCI to earnings | (1.8) | (4.3) | (7.9) | 2.8 | ||||
Other comprehensive income/(loss) | (98.5) | (13.2) | (78.8) | (13.4) | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 3 | 3 | ||||||
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 | 47.8 | 5.5 | 47.8 | 5.5 | 7.7 | (10.1) | 3.3 | 19.6 |
Net gains/(losses) recognized in OCI before reclassifications | 43 | 2.2 | 60.7 | (14.1) | ||||
Net (gains)/losses reclassified from AOCI to earnings | (2.9) | 0 | (5.3) | 0 | ||||
Other comprehensive income/(loss) | 40.1 | 2.2 | 55.4 | (14.1) | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2.5 | 2.5 | ||||||
Translation Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (510.4) | (281.4) | (510.4) | (281.4) | (432) | (508.1) | (361.1) | (362.7) |
Net gains/(losses) recognized in OCI before reclassifications | (78.4) | 79.7 | (2.3) | 81.3 | ||||
Net (gains)/losses reclassified from AOCI to earnings | 0 | 0 | 0 | 0 | ||||
Other comprehensive income/(loss) | (78.4) | 79.7 | (2.3) | 81.3 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | ||||||
Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (7,530.1) | (5,036.9) | (7,530.1) | (5,036.9) | (6,759.9) | (6,232.2) | (2,884.9) | 1,169.5 |
Other comprehensive income/(loss) | (134.4) | 71.7 | (23.3) | 58.8 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 17.3 | 495.6 | 17.3 | 495.6 | ||||
AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (521.8) | (271.5) | (521.8) | (271.5) | $ (387.4) | $ (503.3) | $ (343.2) | $ (330.3) |
Net gains/(losses) recognized in OCI before reclassifications | (129.6) | 75.9 | (10.1) | 55.6 | ||||
Net (gains)/losses reclassified from AOCI to earnings | (4.8) | (4.2) | (13.2) | 3.2 | ||||
Other comprehensive income/(loss) | (134.4) | 71.7 | (23.3) | 58.8 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 4.8 | $ 0 | $ 4.8 | $ 0 |
Equity (Impact of Reclassificat
Equity (Impact of Reclassifications from Accumulated Other Comprehensive Income on Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Interest income and other, net | $ 2 | $ 15.2 | $ 18 | $ 39.9 |
Revenues | 5,995.7 | 6,305.9 | 13,092.8 | 12,938.7 |
Amounts Reclassified from AOCI, Interest expense | (99.2) | (73.9) | (191.1) | (148.9) |
Amounts Reclassified from AOCI, Cost of sales including occupancy costs | (1,997.7) | (2,012) | (4,234.2) | (4,187.8) |
Gain (Loss) on Disposition of Business | 0 | 21 | 0 | 21 |
Amounts Reclassified from AOCI, Tax (expense)/benefit | (65.4) | (161.2) | (324) | (366.4) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Total before tax | 6.4 | 5.8 | 17.1 | (2.3) |
Amounts Reclassified from AOCI, Tax (expense)/benefit | (1.6) | (1.6) | (3.9) | (0.9) |
Amounts Reclassified from AOCI, Net of tax | 4.8 | 4.2 | 13.2 | (3.2) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Net of tax | (0.1) | 0.1 | 0 | 0.4 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, 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 | 0.2 | 0.2 | 0 | 0.7 |
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 | (1.8) | (4.3) | (7.9) | 2.8 |
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, Total before tax | (2.3) | (5.6) | (9.9) | 3 |
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 | (2.9) | 0 | (5.3) | 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] | ||||
Amounts Reclassified from AOCI, Interest income and other, net | 3.9 | 0 | 7.2 | 0 |
Translation Adjustment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts Reclassified from AOCI, Net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Employee Stock Plans (Narrative
Employee Stock Plans (Narrative) (Details) shares in Millions | Mar. 29, 2020shares |
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 | 46.2 |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance pursuant to future equity-based compensation awards and ESPP | 12.2 |
Employee Stock Plans (Stock-Bas
Employee Stock Plans (Stock-Based Compensation Expense Recognized in Consolidated Statement of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 56.3 | $ 94.9 | $ 146.6 | $ 192.1 |
Stock Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 0.7 | 7.2 | 2.4 | 15.5 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 55.6 | $ 87.7 | $ 144.2 | $ 176.6 |
Employee Stock Plans (Stock Opt
Employee Stock Plans (Stock Option and RSU Transactions) (Details) shares in Millions, $ in Millions | 6 Months Ended |
Mar. 29, 2020USD ($)shares | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, September 29, 2019 | 15.2 |
Granted, Stock Options | 0.1 |
Options exercised, Stock Options | (1.3) |
Forfeited/expired, Stock Options | (0.1) |
Options outstanding, March 29, 2020 | 13.9 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, Stock Options | $ | $ 2.5 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested RSUs, September 29, 2019 | 8.9 |
Granted, RSUs | 3.7 |
RSUs vested, RSUs | (3.3) |
Forfeited/expired, RSUs | (0.7) |
Nonvested RSUs, March 29, 2020 | 8.6 |
Total unrecognized stock-based compensation expense, net of estimated forfeitures, RSUs | $ | $ 237.1 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Mar. 29, 2020 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Out-of-the-money stock options | 0 | 0 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Net Earnings Per Common Share (EPS) - Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Starbucks | $ 328.4 | $ 663.2 | $ 1,214.1 | $ 1,423.6 |
Weighted average common shares outstanding (for basic calculation) | 1,171.8 | 1,239.2 | 1,176.1 | 1,240.6 |
Dilutive effect of outstanding common stock options and RSUs | 8.9 | 11.5 | 9.7 | 11.5 |
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,180.7 | 1,250.7 | 1,185.8 | 1,252.1 |
Earnings per share - basic | $ 0.28 | $ 0.54 | $ 1.03 | $ 1.15 |
Earnings per share - diluted | $ 0.28 | $ 0.53 | $ 1.02 | $ 1.14 |
Segment Reporting (Financial In
Segment Reporting (Financial Information For Reportable Operating Segments And All Other Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Factors Used to Identify Entity's Reportable Segments | 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. | |||
Revenues | $ 5,995.7 | $ 6,305.9 | $ 13,092.8 | $ 12,938.7 |
Depreciation and amortization expenses | 356.3 | 356.2 | 707.4 | 689.6 |
Income from equity investees | 67.9 | 62.3 | 141.9 | 130.1 |
Operating income/(loss) | 487.4 | 857.7 | $ 1,707.2 | 1,873.4 |
Financial Information For Reportable Operating Segments And All Other Segments | The table below presents financial information for our reportable operating segments and Corporate and Other segment (in millions) : Quarter Ended Americas International Channel Development Corporate and Other Total March 29, 2020 Total net revenues $ 4,330.0 $ 1,134.6 $ 519.1 $ 12.0 $ 5,995.7 Depreciation and amortization expenses 191.5 130.0 0.3 34.5 356.3 Income from equity investees — 24.8 43.1 — 67.9 Operating income/(loss) $ 621.2 $ (15.4) $ 189.6 $ (308.0) $ 487.4 March 31, 2019 Total net revenues (1) $ 4,314.1 $ 1,529.4 $ 446.6 $ 15.8 $ 6,305.9 Depreciation and amortization expenses 173.0 130.4 12.3 40.5 356.2 Income from equity investees — 22.1 40.2 — 62.3 Operating income/(loss) $ 856.4 $ 201.8 $ 148.9 $ (349.4) $ 857.7 Two Quarters Ended Americas International Channel Development Corporate and Other Total March 29, 2020 Total net revenues $ 9,340.9 $ 2,705.7 $ 1,013.7 $ 32.5 $ 13,092.8 Depreciation and amortization expenses 380.7 256.7 0.6 69.4 707.4 Income from equity investees — 55.8 86.1 — 141.9 Operating income/(loss) $ 1,720.0 $ 260.5 $ 365.1 $ (638.4) $ 1,707.2 March 31, 2019 Total net revenues $ 8,926.6 $ 3,033.5 $ 951.1 $ 27.5 $ 12,938.7 Depreciation and amortization expenses 339.9 257.3 12.4 80.0 689.6 Income from equity investees — 48.5 81.6 — 130.1 Operating income/(loss) $ 1,825.2 $ 431.9 $ 324.6 $ (708.3) $ 1,873.4 (1) Prior period amounts have been restated to reflect the fourth quarter fiscal 2019 realigned Starbucks operating segment reporting structure. | |||
Operating Segments [Member] | Americas Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,330 | 4,314.1 | $ 9,340.9 | 8,926.6 |
Depreciation and amortization expenses | 191.5 | 173 | 380.7 | 339.9 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | 621.2 | 856.4 | 1,720 | 1,825.2 |
Operating Segments [Member] | International Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,134.6 | 1,529.4 | 2,705.7 | 3,033.5 |
Depreciation and amortization expenses | 130 | 130.4 | 256.7 | 257.3 |
Income from equity investees | 24.8 | 22.1 | 55.8 | 48.5 |
Operating income/(loss) | (15.4) | 201.8 | 260.5 | 431.9 |
Operating Segments [Member] | Channel Development [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 519.1 | 446.6 | 1,013.7 | 951.1 |
Depreciation and amortization expenses | 0.3 | 12.3 | 0.6 | 12.4 |
Income from equity investees | 43.1 | 40.2 | 86.1 | 81.6 |
Operating income/(loss) | 189.6 | 148.9 | 365.1 | 324.6 |
Operating Segments [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12 | 15.8 | 32.5 | 27.5 |
Depreciation and amortization expenses | 34.5 | 40.5 | 69.4 | 80 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | (308) | (349.4) | (638.4) | (708.3) |
Beverage Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,530.9 | 3,760.4 | 7,789.4 | 7,688.3 |
Food Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,076.8 | 1,157.9 | 2,355.7 | 2,344.3 |
Other Products Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,388 | $ 1,387.6 | $ 2,947.7 | $ 2,906.1 |
Revenue Benchmark [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue Benchmark [Member] | Beverage Member | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 59.00% | 60.00% | 59.00% | 60.00% |
Revenue Benchmark [Member] | Food Member | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 18.00% | 18.00% | 18.00% | 18.00% |
Revenue Benchmark [Member] | Other Products Member | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 23.00% | 22.00% | 23.00% | 22.00% |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation Of Total Segment Operating Income To Consolidated Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | $ 5,995.7 | $ 6,305.9 | $ 13,092.8 | $ 12,938.7 |
Depreciation and amortization expenses | 356.3 | 356.2 | 707.4 | 689.6 |
Income from equity investees | 67.9 | 62.3 | 141.9 | 130.1 |
Operating income/(loss) | 487.4 | 857.7 | 1,707.2 | 1,873.4 |
Americas Segment [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 4,330 | 4,314.1 | 9,340.9 | 8,926.6 |
Depreciation and amortization expenses | 191.5 | 173 | 380.7 | 339.9 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | 621.2 | 856.4 | 1,720 | 1,825.2 |
International Segment | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 1,134.6 | 1,529.4 | 2,705.7 | 3,033.5 |
Depreciation and amortization expenses | 130 | 130.4 | 256.7 | 257.3 |
Income from equity investees | 24.8 | 22.1 | 55.8 | 48.5 |
Operating income/(loss) | (15.4) | 201.8 | 260.5 | 431.9 |
Channel Development [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 519.1 | 446.6 | 1,013.7 | 951.1 |
Depreciation and amortization expenses | 0.3 | 12.3 | 0.6 | 12.4 |
Income from equity investees | 43.1 | 40.2 | 86.1 | 81.6 |
Operating income/(loss) | 189.6 | 148.9 | 365.1 | 324.6 |
Corporate and Other [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 12 | 15.8 | 32.5 | 27.5 |
Depreciation and amortization expenses | 34.5 | 40.5 | 69.4 | 80 |
Income from equity investees | 0 | 0 | 0 | 0 |
Operating income/(loss) | $ (308) | $ (349.4) | $ (638.4) | $ (708.3) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,995.7 | $ 6,305.9 | $ 13,092.8 | $ 12,938.7 |
Operating income/(loss) | 487.4 | 857.7 | 1,707.2 | 1,873.4 |
Operating Segments [Member] | Americas Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,330 | 4,314.1 | 9,340.9 | 8,926.6 |
Operating income/(loss) | 621.2 | 856.4 | 1,720 | 1,825.2 |
Operating Segments [Member] | International Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,134.6 | 1,529.4 | 2,705.7 | 3,033.5 |
Operating income/(loss) | (15.4) | 201.8 | 260.5 | 431.9 |
Operating Segments [Member] | Channel Development [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 519.1 | 446.6 | 1,013.7 | 951.1 |
Operating income/(loss) | 189.6 | 148.9 | 365.1 | 324.6 |
Operating Segments [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12 | 15.8 | 32.5 | 27.5 |
Operating income/(loss) | $ (308) | $ (349.4) | $ (638.4) | $ (708.3) |
Uncategorized Items - sbux-2020
Label | Element | Value |
Proceeds from Issuance of Long-term Debt | us-gaap_ProceedsFromIssuanceOfLongTermDebt | $ 0 |
Proceeds from Issuance of Long-term Debt | us-gaap_ProceedsFromIssuanceOfLongTermDebt | $ 1,739,700,000 |