Document and Company Informatio
Document and Company Information (USD $) | |||
In Billions, except Share data in Millions | 12 Months Ended
Sep. 27, 2009 | Nov. 13, 2009
| Mar. 27, 2009
|
Document and Company Information [Abstract] | |||
Entity Registrant Name | STARBUCKS CORP | ||
Entity Central Index Key | 0000829224 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-09-27 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-27 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | 8.4 | ||
Entity Common Stock, Shares Outstanding | 740.2 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Sep. 27, 2009 | 12 Months Ended
Sep. 28, 2008 | 12 Months Ended
Sep. 30, 2007 |
Net revenues: | |||
Company-operated retail | 8180.1 | 8771.9 | 7998.3 |
Specialty: | |||
Licensing | 1222.3 | 1171.6 | 1026.3 |
Foodservice and other | 372.2 | 439.5 | 386.9 |
Total specialty | 1594.5 | 1611.1 | 1413.2 |
Total net revenues | 9774.6 | 10,383 | 9411.5 |
Cost of sales including occupancy costs | 4324.9 | 4645.3 | 3999.1 |
Store operating expenses | 3425.1 | 3745.1 | 3215.9 |
Other operating expenses | 264.4 | 330.1 | 294.2 |
Depreciation and amortization expenses | 534.7 | 549.3 | 467.2 |
General and administrative expenses | 453 | 456 | 489.2 |
Restructuring charges | 332.4 | 266.9 | 0 |
Total operating expenses | 9334.5 | 9992.7 | 8465.6 |
Income from equity investees | 121.9 | 113.6 | 108 |
Operating income | 562 | 503.9 | 1053.9 |
Interest income and other, net | 36.3 | 9 | 40.4 |
Interest expense | -39.1 | -53.4 | (38) |
Earnings before income taxes | 559.2 | 459.5 | 1056.3 |
Income taxes | 168.4 | 144 | 383.7 |
Net earnings | 390.8 | 315.5 | 672.6 |
Per common share: | |||
Net earnings - basic | 0.53 | 0.43 | 0.9 |
Net earnings - diluted | 0.52 | 0.43 | 0.87 |
Weighted average shares outstanding: | |||
Basic | 738.7 | 731.5 | 749.8 |
Diluted | 745.9 | 741.7 | 770.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Millions | Sep. 27, 2009
| Sep. 28, 2008
|
Current assets: | ||
Cash and cash equivalents | 599.8 | 269.8 |
Short-term investments - available-for-sale securities | 21.5 | 3 |
Short-term investments - trading securities | 44.8 | 49.5 |
Accounts receivable, net | 271 | 329.5 |
Inventories | 664.9 | 692.8 |
Prepaid expenses and other current assets | 147.2 | 169.2 |
Deferred income taxes, net | 286.6 | 234.2 |
Total current assets | 2035.8 | 1,748 |
Long-term investments - available-for-sale securities | 71.2 | 71.4 |
Equity and cost investments | 352.3 | 302.6 |
Property, plant and equipment, net | 2536.4 | 2956.4 |
Other assets | 253.8 | 261.1 |
Other intangible assets | 68.2 | 66.6 |
Goodwill | 259.1 | 266.5 |
TOTAL ASSETS | 5576.8 | 5672.6 |
Current liabilities: | ||
Commercial paper and short-term borrowings | 0 | 713 |
Accounts payable | 267.1 | 324.9 |
Accrued compensation and related costs | 307.5 | 253.6 |
Accrued occupancy costs | 188.1 | 136.1 |
Accrued taxes | 127.8 | 76.1 |
Insurance reserves | 154.3 | 152.5 |
Other accrued expenses | 147.3 | 164.4 |
Deferred revenue | 388.7 | 368.4 |
Current portion of long-term debt | 0.2 | 0.7 |
Total current liabilities | 1,581 | 2189.7 |
Long-term debt | 549.3 | 549.6 |
Other long-term liabilities | 400.8 | 442.4 |
Total liabilities | 2531.1 | 3181.7 |
Shareholders' equity: | ||
Common stock ($0.001 par value) - authorized, 1,200.0 shares; issued and outstanding, 742.9 and 735.5 shares, respectively (includes 3.4 common stock units in both periods) | 0.7 | 0.7 |
Additional paid-in capital | 147 | 0 |
Other additional paid-in-capital | 39.4 | 39.4 |
Retained earnings | 2793.2 | 2402.4 |
Accumulated other comprehensive income | 65.4 | 48.4 |
Total shareholders' equity | 3045.7 | 2490.9 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5576.8 | 5672.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
Share data in Millions | Sep. 27, 2009
| Sep. 28, 2008
|
Shareholders' equity: | ||
Common stock, par value | 0.001 | 0.001 |
Common stock, shares authorized | 1,200 | 1,200 |
Common stock, shares issued | 742.9 | 735.5 |
Common stock, shares outstanding | 742.9 | 735.5 |
Common stock units | 3.4 | 3.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Sep. 27, 2009 | 12 Months Ended
Sep. 28, 2008 | 12 Months Ended
Sep. 30, 2007 |
OPERATING ACTIVITIES: | |||
Net earnings | 390.8 | 315.5 | 672.6 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 563.3 | 604.5 | 491.2 |
Provision for impairments and asset disposals | 224.4 | 325 | 26 |
Deferred income taxes | -69.6 | -117.1 | -37.3 |
Equity in income of investees | -78.4 | -61.3 | -65.7 |
Distributions of income from equity investees | 53 | 52.6 | 65.9 |
Stock-based compensation | 83.2 | 75 | 103.9 |
Tax benefit from exercise of stock options | 2 | 3.8 | 7.7 |
Excess tax benefit from exercise of stock options | -15.9 | -14.7 | -93.1 |
Other | 5.4 | -0.1 | 0.7 |
Cash provided/(used) by changes in operating assets and liabilities: | |||
Inventories | 28.5 | -0.6 | -48.6 |
Accounts payable | (53) | -63.9 | 36.1 |
Accrued taxes | 57.2 | 7.3 | 86.4 |
Deferred revenue | 16.3 | 72.4 | 63.2 |
Other operating assets | 120.5 | -11.2 | -92.7 |
Other operating liabilities | 61.3 | 71.5 | 114.9 |
Net cash provided by operating activities | 1,389 | 1258.7 | 1331.2 |
INVESTING ACTIVITIES: | |||
Purchase of available-for-sale securities | -129.2 | -71.8 | -237.4 |
Maturities and calls of available-for-sale securities | 111 | 20 | 178.2 |
Sales of available-for-sale securities | 5 | 75.9 | 47.5 |
Acquisitions, net of cash acquired | 0 | -74.2 | -53.3 |
Net purchases of equity, other investments and other assets | -4.8 | (52) | -56.6 |
Additions to property, plant and equipment | -445.6 | -984.5 | -1080.3 |
Proceeds from sale of property, plant and equipment | 42.5 | 0 | 0 |
Net cash used by investing activities | -421.1 | -1086.6 | -1201.9 |
FINANCING ACTIVITIES: | |||
Proceeds from issuance of commercial paper | 20965.4 | 65770.8 | 17311.1 |
Repayments of commercial paper | -21378.5 | (66,068) | -16600.9 |
Proceeds from short-term borrowings | 1,338 | 528.2 | 770 |
Repayments of short-term borrowings | (1,638) | -228.8 | (1,470) |
Proceeds from issuance of common stock | 57.3 | 112.3 | 176.9 |
Excess tax benefit from exercise of stock options | 15.9 | 14.7 | 93.1 |
Proceeds from issuance of long-term debt | 0 | 0 | 549 |
Principal payments on long-term debt | -0.7 | -0.6 | -0.8 |
Repurchase of common stock | 0 | -311.4 | -996.8 |
Other | -1.6 | -1.7 | -3.5 |
Net cash used by financing activities | -642.2 | -184.5 | -171.9 |
Effect of exchange rate changes on cash and cash equivalents | 4.3 | 0.9 | 11.3 |
Net increase/(decrease) in cash and cash equivalents | 330 | -11.5 | -31.3 |
CASH AND CASH EQUIVALENTS: | |||
Beginning of period | 269.8 | 281.3 | 312.6 |
End of period | 599.8 | 269.8 | 281.3 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Net change in short-term borrowings and commercial paper for the period | -713.1 | 2.2 | 10.2 |
Cash paid during the period for: | |||
Interest, net of capitalized interest | 39.8 | 52.7 | 35.3 |
Income taxes | $162 | 259.5 | 342.2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity (USD $) | ||||||
In Millions | Common Stock
| Additional Paid-in Capital
| Other Additional Paid-in Capital
| Retained Earnings
| Accumulated Other Comprehensive Income/(Loss)
| Total
|
Beginning Balance, Shares at Oct. 01, 2006 | 756.6 | |||||
Beginning Balance at Oct. 01, 2006 | 0.7 | $0 | 39.4 | 2151.1 | 37.3 | 2228.5 |
Net earnings | 672.6 | 672.6 | ||||
Unrealized holding gain (loss), net | -20.4 | -20.4 | ||||
Translation adjustment, net of tax | 37.7 | 37.7 | ||||
Stock-based compensation expense | 106.4 | 106.4 | ||||
Exercise of stock options, including tax benefit of $5.3, $8.4 and $95.3 for the year 2009, 2008 and 2007 respectively | 225.2 | 225.2 | ||||
Exercise of stock options, including tax benefit of $5.3, $8.4 and $95.3 for the year 2009, 2008 and 2007 respectively, shares | 12.8 | |||||
Sale of common stock, including tax provision of $0.1 for the year 2009, 2008 & 2007 | 46.8 | 46.8 | ||||
Sale of common stock, including tax provision of $0.1 for the year 2009, 2008 & 2007, shares | 1.9 | |||||
Repurchase of common stock | -378.4 | -634.3 | -1012.7 | |||
Repurchase of common stock, shares | (33) | |||||
Ending Balance at Sep. 30, 2007 | 0.7 | 0 | 39.4 | 2189.4 | 54.6 | 2284.1 |
Ending Balance, Shares at Sep. 30, 2007 | 738.3 | |||||
Cumulative impact of adoption of accounting requirements for uncertain tax positions | -1.6 | -1.7 | -3.3 | |||
Net earnings | 315.5 | 315.5 | ||||
Unrealized holding gain (loss), net | 0.8 | 0.8 | ||||
Translation adjustment, net of tax | (7) | (7) | ||||
Stock-based compensation expense | 76.8 | 76.8 | ||||
Exercise of stock options, including tax benefit of $5.3, $8.4 and $95.3 for the year 2009, 2008 and 2007 respectively | 77.4 | 77.4 | ||||
Exercise of stock options, including tax benefit of $5.3, $8.4 and $95.3 for the year 2009, 2008 and 2007 respectively, shares | 6.6 | |||||
Sale of common stock, including tax provision of $0.1 for the year 2009, 2008 & 2007 | 41.9 | 41.9 | ||||
Sale of common stock, including tax provision of $0.1 for the year 2009, 2008 & 2007, shares | 2.8 | |||||
Repurchase of common stock | -194.5 | -100.8 | -295.3 | |||
Repurchase of common stock, shares | -12.2 | |||||
Ending Balance at Sep. 28, 2008 | 0.7 | 0 | 39.4 | 2402.4 | 48.4 | 2490.9 |
Ending Balance, Shares at Sep. 28, 2008 | 735.5 | |||||
Net earnings | 390.8 | 390.8 | ||||
Unrealized holding gain (loss), net | 1.8 | 1.8 | ||||
Translation adjustment, net of tax | 15.2 | 15.2 | ||||
Stock-based compensation expense | 84.3 | 84.3 | ||||
Exercise of stock options, including tax benefit of $5.3, $8.4 and $95.3 for the year 2009, 2008 and 2007 respectively | 35.9 | 35.9 | ||||
Exercise of stock options, including tax benefit of $5.3, $8.4 and $95.3 for the year 2009, 2008 and 2007 respectively, shares | 4.9 | |||||
Sale of common stock, including tax provision of $0.1 for the year 2009, 2008 & 2007 | 26.8 | 26.8 | ||||
Sale of common stock, including tax provision of $0.1 for the year 2009, 2008 & 2007, shares | 2.5 | |||||
Repurchase of common stock | 0 | 0 | 0 | |||
Repurchase of common stock, shares | 0 | |||||
Ending Balance at Sep. 27, 2009 | 0.7 | $147 | 39.4 | 2793.2 | 65.4 | 3045.7 |
Ending Balance, Shares at Sep. 27, 2009 | 742.9 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Parenthetical) (USD $) | |||
In Millions | 12 Months Ended
Sep. 27, 2009 | 12 Months Ended
Sep. 28, 2008 | 12 Months Ended
Sep. 30, 2007 |
Tax effects on stock option exercise | 5.3 | 8.4 | 95.3 |
Tax effects on sale of common stock | 0.1 | 0.1 | 0.1 |
Additional Paid-in Capital | |||
Tax effects on stock option exercise | 5.3 | 8.4 | 95.3 |
Tax effects on sale of common stock | 0.1 | 0.1 | 0.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note1: Summary of Significant Accounting Policies Description of Business Starbucks Corporation (together with its subsidiaries, Starbucks or the Company) purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through its Company-operated retail stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels such as licensed stores, and through certain of its licensees and equity investees, Starbucks produces and sells a variety of ready-to-drink beverages. All channels outside the Company-operated retail stores are collectively known as specialty operations. Additional details on the nature of the Companys business are in Item1 of this 10-K. Starbucks has three reportable operating segments: United States (US), International and Global Consumer Products Group (CPG). See Note18 for additional details. Principles of Consolidation The consolidated financial statements reflect the financial position and operating results of Starbucks, including wholly owned subsidiaries and investees controlled by the Company. Investments in entities that the Company does not control, but has the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. Investments in entities in which Starbucks does not have the ability to exercise significant influence are accounted for under the cost method. Intercompany transactions and balances have been eliminated. Fiscal Year End Starbucks fiscal year ends on the Sunday closest to September30. The fiscal years ended on September27, 2009, September28, 2008 and September30, 2007 all included 52weeks. Starbucks 2010 fiscal year will include 53weeks, with the 53rd week falling in its fourth fiscal quarter. Subsequent Events The Company evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through November20, 2009, the day the financial statements were issued. Estimates and Assumptions Preparing financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include, but are not limited to, estimates for asset and goodwill impairments, stock-based compensation forfeiture rates, and future asset retirement obligations; assumptions underlying self-insurance reserves; and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions. Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of purchase to be cash equivalents. The Company maintains cash and cash equivale |
Restructuring Charges
Restructuring Charges | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Note2: Restructuring Charges In fiscal 2009, Starbucks continued to execute its restructuring efforts to position the Company for long-term profitable growth. These efforts have been focused on both the global Company-operated store base and the non-retail support organization. Starbucks actions to rationalize its store portfolio have included plans (announced in July 2008 and January 2009)to close approximately 800 Company-operated stores in the US, restructure its Australia market, and close approximately 100 additional Company-operated stores internationally. Since those announcements, nearly all of the approximately 800 US stores, 61 stores in Australia and 41 in other International markets have been closed. US Store Closures In fiscal 2009, the Company closed 383 of the approximately 600 stores announced in July 2008, bringing the total number of US closures under this restructuring action to 588 stores. The Company also closed 183 of the approximately 200 stores announced for closure in January 2009. International Store Closures During fiscal 2009, the Company closed 41 of the approximately 100 stores announced for closure in January 2009. The Company expects to complete the remaining closures in fiscal 2010, and will recognize the associated lease exit costs concurrently with the actual closures. Workforce Reduction and Other Related Costs Workforce reductions related to store closures and non-store support positions resulted in the recognition of $19.0million in employee termination costs in fiscal 2009. In addition, in fiscal 2009, Starbucks recognized $47.8million of valuation adjustments on corporate office facilities that were no longer intended to be occupied by the Company. Restructuring charges by type and a reconciliation of the associated accrued liability (in millions): Lease Exit Employee and Other Asset Termination Related Costs Impairments Costs Total Total expected costs $ 263.1 $ 330.8 $ 37.0 $ 630.9 Expenses recognized in fiscal 2009(1) 184.2 129.2 19.0 332.4 Expenses recognized in fiscal 2008(1) 47.8 201.6 17.5 266.9 Costs incurred in fiscal 2009(1) 169.5 129.2 19.0 317.7 Costs incurred in fiscal 2008(1) 62.6 201.6 17.5 281.7 Costs incurred cumulative to date 232.1 330.8 36.5 599.4 Accrued liability as of September30, 2007 $ $ $ Costs incurred in fiscal 2008, excluding non-cash charges and credits(2) 72.4 17.5 89.9 Cash payments (24.4 ) (12.1 ) (36.5 ) Accrued liability as of September28, 2008 48.0 5.4 53.4 Costs incurred in fiscal 2009, excluding non-cash charges and credits(2) |
Investments
Investments | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Investments Disclosure [Abstract] | |
Investments | Note3: Investments Short-term and long-term investments (in millions): Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value September27, 2009 Short-term investments available-for-sale securities: Corporate debt securities $ 2.5 $ 2.5 Government treasury securities 19.0 19.0 Total 21.5 21.5 Short-term investments trading securities 58.5 44.8 Total short-term investments $ 80.0 $ 66.3 Long-term investments available-for-sale securities: State and local government obligations $ 57.8 $ $ (2.1 ) $ 55.7 Corporate debt securities 14.7 0.8 15.5 Total long-term investments $ 72.5 $ 0.8 $ (2.1 ) $ 71.2 September28, 2008 Short-term investments available-for-sale securities: Corporate debt securities $ 3.0 $ 3.0 Total 3.0 3.0 Short-term investments trading securities 58.2 49.5 Total short-term investments $ 61.2 $ 52.5 Long-term investments available-for-sale securities: State and local government obligations $ 65.8 $ $ (6.0 ) $ 59.8 Corporate debt securities 12.1 (0.5 ) 11.6 Total long-term investments $ 77.9 $ $ (6.5 ) $ 71.4 Available-for-sale securities Proceeds from sales of available-for-sale securities were $5.0million, $75.9million and $47.5million and in fiscal years 2009, 2008 and 2007, respectively. For fiscal years 2009, 2008 and 2007, there were immaterial realized gains and losses on sales and maturities. As of September27, 2009, the Companys long-term available-for-sale securities of $71.2million included $55.7million invested in auction rate securities (ARS). As of September28, 2008, the Companys long-term available-for-sale securities of $71.4million included $59.8million invested in ARS. ARS h |
Derivative Financial Instrument
Derivative Financial Instruments | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note4: Derivative Financial Instruments Cash Flow Hedges The Company and certain subsidiaries enter into cash flow derivative instruments to hedge portions of anticipated revenue streams and inventory purchases in currencies other than the entitys functional currency. Outstanding forward contracts, which comprise the majority of the Companys derivative instruments, hedge monthly forecasted revenue transactions denominated in Japanese yen and Canadian dollars, as well as forecasted inventory purchases denominated in US dollars for foreign operations. From time to time, the Company also uses futures contracts to hedge the variable price component for a small portion of its price-to-be-fixed green coffee purchase contracts. The Company had net derivative losses of $3.9million and $9.2million, net of taxes, in Accumulated OCI as of September27, 2009 and September28, 2008, respectively, related to cash flow hedges. Of the net derivative losses accumulated as of September28, 2009, $0.9million pertain to hedging instruments that will be dedesignated within 12months and will also continue to experience fair value changes before affecting earnings. Ineffectiveness from hedges that were discontinued in fiscal years 2009 and 2008 was insignificant. Outstanding contracts will expire within 36months. Net Investment Hedges Net investment derivative instruments are used to hedge the Companys equity method investment in Starbucks Coffee Japan, Ltd. (Starbucks Japan) as well as the Companys net investments in its Canada, UK and China subsidiaries, to minimize foreign currency exposure. The Company had net derivative losses of $19.8million and $13.0million, net of taxes, in Accumulated OCI as of September27, 2009 and September28, 2008, respectively, related to net investment derivative hedges. Outstanding contracts will expire within 18months. Other Derivatives The Company enters into certain foreign currency forward contracts that are not designated as hedging instruments to mitigate the translation risk of certain balance sheet items. These contracts are recorded at fair value, with the changes in fair value recognized in Net interest income and other on the consolidated statements of earnings. For the fiscal years 2009 and 2008, these forward contracts resulted in a net gain of $20.0million and a net loss $0.1million, respectively. These gains and losses were largely offset by the financial impact of translating foreign currency denominated payables and receivables, which are also recognized in Net interest income and other. In the third quarter of fiscal 2009, the Company entered into certain swap and futures contracts that are not designated as hedging instruments to mitigate the price uncertainty of a portion of its future purchases of dairy products and diesel fuel. These contracts are recorded at fair value, with the changes in fair value recognized in Net interest income and other on the consolidated statement of earnings. For the fiscal year 2009, these swaps and futures contracts resulted in a net loss of $0.6million. Fair values of derivative instruments on the consolidated balance s |
Fair Value Measurements
Fair Value Measurements | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note5: Fair Value Measurements The Company adopted the new fair value accounting guidance related to financial assets and liabilities effective September29, 2008, and will adopt the new fair value accounting guidance for nonfinancial assets and liabilities in the first fiscal quarter of 2010. The new fair value accounting guidance allows for this two-step adoption approach. The Company continues to evaluate the potential impact of the adoption of fair value measurements related to its property, plant and equipment, goodwill and other intangible assets. The guidance defines fair value, establishes a framework for measuring fair value under GAAP and expands disclosures about fair value measurements. It also establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level1:Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level2:Inputs other than quoted prices included within Level1 that are observable for the asset or liability, either directly or indirectly. Level3:Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in managements best estimate of fair value. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions): Sep27, 2009 Level 1 Level 2 Level 3 Assets: Trading securities $ 44.8 $ 44.8 $ $ Available-for-sale securities 92.7 19.0 18.0 55.7 Derivatives 13.2 13.2 Total $ 150.7 $ 63.8 $ 31.2 $ 55.7 Liabilities: Derivatives $ 33.2 $ $ 33.2 $ Trading securities include equity mutual funds and exchange-traded funds. For these securities, the Company uses quoted prices in active markets for identical assets to determine their fair value, thus they are considered to be Level1 instruments. Available-for-sale securities include government treasury securities, corporate bonds and ARS. For government treasury securities, the Company uses quoted price in active markets for identical assets to determine their fair value, thus they are considered to be Level1instruments. The Company uses observable direct and indirect inputs for corporate bonds, which are considered Level2 instruments. Level3 instruments are comprised solely of ARS, all of which are considered to be illiquid due to the auction failures that began in February 2008. The Company values ARS using an internally developed valuation model, whose inputs include interest rate curves, credit and liquidity spreads, and effective maturity. Derivative assets and liabilities include foreign currency forward contracts, commodity swaps and futures contracts. Where applicable, the Co |
Inventories
Inventories | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Inventories [Abstract] | |
Inventories | Note6: Inventories Inventories consisted of the following (in millions): Sep27, 2009 Sep28, 2008 Coffee: Unroasted $ 381.6 $ 377.7 Roasted 76.7 89.6 Other merchandise held for sale 116.0 120.6 Packaging and other supplies 90.6 104.9 Total $ 664.9 $ 692.8 Other merchandise held for sale includes, among other items, serveware, tea and brewing equipment. As of September27, 2009, the Company had committed to purchasing green coffee totaling $155million under fixed-price contracts and an estimated $84million under price-to-be-fixed contracts. The Company believes, based on relationships established with its suppliers in the past, the risk of non-delivery on such purchase commitments is remote. |
Equity and Cost Investments
Equity and Cost Investments | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Equity and Cost Investments [Abstract] | |
Equity and Cost Investments | Note7: Equity and Cost Investments Equity and cost investments (in millions): Sep27, 2009 Sep28, 2008 Equity method investments $ 313.2 $ 267.9 Cost method investments 39.1 34.7 Total $ 352.3 $ 302.6 Equity Method Investments Equity investees and ownership interests by reportable operating segment: Sep27, 2009 Sep28, 2008 United States StarCon, LLC % 50.0 % International Starbucks Coffee Korea Co., Ltd. 50.0 50.0 Starbucks Coffee Austria GmbH 50.0 50.0 Starbucks Coffee Switzerland AG 50.0 50.0 Starbucks Coffee Espaa, S.L 50.0 50.0 President Starbucks Coffee Taiwan Ltd. 50.0 50.0 Shanghai President Coffee Co. 50.0 50.0 Starbucks Coffee France SAS 50.0 50.0 Berjaya Starbucks Coffee Company Sdn. Bhd. (Malaysia) 50.0 50.0 Starbucks Brasil Comercio de Cafes Ltda. 49.0 49.0 Starbucks Coffee Japan, Ltd. 40.1 40.1 Starbucks Coffee Portugal Lda 50.0 50.0 CPG The North American Coffee Partnership 50.0 50.0 Starbucks Ice Cream Partnership 50.0 50.0 StarCon, LLC was a joint venture formed in March 2007 with Concord Music Group, Inc. (Concord). The Company sold its 50% ownership interest to Concord in early fiscal 2009. The International entities operate licensed Starbucks retail stores. See Note19 for a discussion of a transaction affecting the Companys ownership related to its markets in France, Spain and Portugal. The Company also has licensed the rights to produce and distribute Starbucks branded products to two partnerships in which the Company holds 50% equity interests. The North American Coffee Partnership with the Pepsi-Cola Company develops and distributes bottled Frappuccino beverages and Starbucks DoubleShot espresso drinks. Starbucks Ice Cream Partnership developed and distributed super premium ice creams, and was in the process of being dissolved at the end of fiscal 2009. It was replaced by a licensing agreement with Unilever for the manufacturing, marketing and distribution of Starbucks super-premium ice cream products in the US. Prior to fiscal 2005, Starbucks acquired equity interest in its licensed operations of Malaysia, Austria, Shanghai, Spain, Switzerland and Taiwan. The carrying amount of these investments was $24.3million more than the underlying equity in net assets due to acquired goodwill, which is evaluated for impairment annually. No impairments were recorded during fiscal years 2009, 2008 or 2007. The Companys share of income and losses from its equity method investments is included in Income from equity investees on the consolidated statements of earnings. Also included in this line item is the Companys pro |
Property, Plant and Equipment
Property, Plant and Equipment | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note8: Property, Plant and Equipment Property, plant and equipment (in millions): Sep27, 2009 Sep28, 2008 Land $ 58.2 $ 59.1 Buildings 231.5 217.7 Leasehold improvements 3,349.0 3,363.1 Store equipment 1,073.4 1,045.3 Roasting equipment 282.9 220.7 Furniture, fixtures and other 586.7 517.8 Work in progress 119.2 293.6 5,700.9 5,717.3 Less accumulated depreciation and amortization (3,164.5 ) (2,760.9 ) Property, plant and equipment, net $ 2,536.4 $ 2,956.4 |
Other Intangible Assets and Goo
Other Intangible Assets and Goodwill | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Other Intangible Assets and Goodwill [Abstract] | |
Other Intangible Assets and Goodwill | Note9: Other Intangible Assets and Goodwill Other intangible assets (in millions): Sep27, 2009 Sep28, 2008 Indefinite-lived intangibles $ 60.8 $ 58.3 Definite-lived intangibles 15.0 14.2 Accumulated amortization (7.6 ) (5.9 ) Definite-lived intangibles, net 7.4 8.3 Total other intangible assets $ 68.2 $ 66.6 Definite-lived intangibles approximate remaining weighted average useful life in years 8 8 Amortization expense for definite-lived intangibles was $1.7million, $1.5million and $1.0million during fiscal 2009, 2008 and 2007, respectively. Estimated amortization expense for each of the next five fiscal years and thereafter, as of September27, 2009 (inmillions): Fiscal Year Ending 2010 $ 1.1 2011 1.0 2012 1.0 2013 0.9 2014 0.8 Thereafter 2.6 Total $ 7.4 Changes in the carrying amount of goodwill by reportable operating segment for the fiscal year ended September27, 2009 (in millions): United States International CPG Total Balance as of September28, 2008 $ 118.1 $ 117.4 $ 31.0 $ 266.5 Purchase price adjustment of previous acquisitions (1.2 ) (1.2 ) Impairment (7.0 ) (7.0 ) Other 0.8 0.8 Balance as of September27, 2009 $ 111.1 $ 117.0 $ 31.0 $ 259.1 United States The impairment of $7.0million relates to the Companys Hawaii reporting unit as discussed further in Note1. International The decrease in goodwill of $1.2million was due to purchase price adjustments for property, plant and equipment acquired as a part of the Coffee Vision, Inc. acquisition, completed in the fourth quarter of fiscal 2008. The increase in goodwill of $0.8million included in Other was due to foreign currency fluctuations. |
Debt
Debt | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Debt [Abstract] | |
Debt | Note10: Debt Debt consisted of the following (in millions): Sep27, 2009 Sep28, 2008 Commercial paper program (end of period weighted average interest rate of 3.4)% $ $ 413.0 Revolving credit facility (end of period weighted average interest rate of 3.5)% 300.0 Current portion of long-term debt 0.2 0.7 Short-term debt 0.2 713.7 6.25% 10-year Senior Notes (due Aug 2017) 549.2 549.2 Other long-term debt 0.1 0.4 Long-term debt 549.3 549.6 Total debt $ 549.5 $ 1,263.3 Revolving Credit Facility and Commercial Paper Program The Company has a $1billion unsecured credit facility (the credit facility) with various banks, of which $100million may be used for issuances of letters of credit. The credit facility is available for working capital, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases. The credit facility is currently set to terminate in August 2011. On October31, 2008, the Company entered into an amendment to its facility that, among other changes, increased the interest rate range for borrowings under the credit facility to 0.21% to 0.67% over LIBOR or the greater of the bank prime rate or the Federal Funds Rate plus 0.50%. The specific spread over LIBOR will continue to depend upon the Companys long-term credit ratings assigned by Moodys and Standard Poors rating agencies and the Companys coverage ratio. The credit facility contains provisions requiring the Company to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio which measures the Companys ability to cover financing expenses. Under the Companys commercial paper program it may issue unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $1billion, with individual maturities that may vary, but not exceed 397days from the date of issue. The program is backstopped by the Companys credit facility, and the combined borrowing limit is $1billion for the commercial paper program and the credit facility. The Company may issue commercial paper from time to time, and the proceeds of the commercial paper financing will be used for working capital needs, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases. As of September27, 2009, the Company also had $14.1million in letters of credit outstanding under the credit facility, leaving a total of $985.9million in remaining borrowing capacity under the combined credit facility and commercial paper program. As of September28, 2008, letters of credit totaling $15.9million were outstanding. Long-term Debt In August 2007, the Company issued $550million of 6.25%Senior Notes (the notes) due in August 2017, in an underwritten registered public offering. Interest is payable semi-annually on February 15 and August 15 of each year. |
Other Long term Liabilities
Other Long term Liabilities | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Other Long-term Liabilities [Abstract] | |
Other Long-term Liabilities | Note11: Other Long-term Liabilities Other long-term liabilities (in millions): Sep27, 2009 Sep28, 2008 Deferred rent $ 266.0 $ 303.9 Unrecognized tax benefits 55.1 60.4 Asset retirement obligations 43.4 44.6 Minority interest 11.2 18.3 Other 25.1 15.2 Total $ 400.8 $ 442.4 Deferred rent liabilities represent amounts for tenant improvement allowances, rent escalation clauses and rent holidays related to certain operating leases. The Company amortizes deferred rent over the terms of the leases as reductions to rent expense on the consolidated statements of earnings. Unrecognized tax benefits represent the estimated long-term portion of the Companys gross unrecognized tax benefits including interest. See Notes1 and 15 for additional information. Asset retirement obligations represent the estimated fair value of the Companys future costs of removing leasehold improvements at the termination of leases for certain stores and administrative facilities. Minority interest represents the collective ownership interests of minority shareholders for operations accounted for under the consolidation method, in which Starbucks owns less than 100% of the equity interest. The other remaining long-term liabilities generally include obligations to be settled or paid for one year beyond each period presented, for items such as hedging instruments and the long-term portion of capital lease obligations. |
Leases
Leases | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Leases [Abstract] | |
Leases | Note12: Leases In the fourth quarter of fiscal 2009 Starbucks determined that there was an immaterial classification error in the lease footnote of the 2008 10-K. Amounts of $25.7million and $22.7million for the fiscal years ended September28, 2008 and September30, 2007, respectively, were incorrectly classified as contingent rent that should have been classified as minimum rentals. The total for rent expense under operating leases was not impacted. The following table reflects the corrected amounts for fiscal 2008 and 2007. Rental expense under operating lease agreements (in millions): Fiscal Year Ended Sep27, 2009 Sep28, 2008 Sep30, 2007 Minimum rentals $ 690.0 $ 709.1 $ 609.9 Contingent rentals 24.7 32.0 28.2 Total $ 714.7 $ 741.1 $ 638.1 Minimum future rental payments under noncancelable operating leases as of September27, 2009 (in millions): Fiscal Year Ending 2010 $ 706.7 2011 669.0 2012 612.3 2013 551.0 2014 488.1 Thereafter 1,362.1 Total minimum lease payments $ 4,389.2 The Company has subleases related to certain of its operating leases. During fiscal 2009, 2008 and 2007, the Company recognized sublease income of $7.1million, $3.5million and $3.6million, respectively. The Company had capital lease obligations of $7.8million and $6.7million as of September27, 2009 and September28, 2008, respectively. Capital lease obligations expire at various dates, with the latest maturity in 2015. The current portion of the total obligation is included in Other accrued expenses and the remaining long-term portion is included in Other long-term liabilities on the consolidated balance sheets. Assets held under capital leases are included in Net property, plant and equipment on the consolidated balance sheets. The Company had $76.2million and $91.1million in prepaid rent included in Prepaid expenses and other current assets on the consolidated balance sheets as of September27, 2009 and September28, 2008, respectively. |
Shareholders Equity
Shareholders Equity | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note13: Shareholders Equity In addition to 1.2billion shares of authorized common stock with $0.001par value per share, the Company has authorized 7.5million shares of preferred stock, none of which was outstanding at September27, 2009. Share repurchase activity was as follows (in millions, except for average price data): Fiscal Year Ending Sep27, 2009 Sep28, 2008 Number of shares acquired 12.2 Average price per share of acquired shares $ 24.12 Total accrual-based cost of acquired shares $ 295.3 Total cash-based cost of acquired shares $ 311.4 The difference between the accrual-based and cash-based cost of acquired shares represents the effect of the net change in unsettled trades from the prior fiscal year end. As of September27, 2009, 6.3million shares remained available for repurchase under current authorizations. Comprehensive Income Comprehensive income includes all changes in equity during the period, except those resulting from transactions with shareholders of the Company. It has two components: net earnings and other comprehensive income. Accumulated other comprehensive income reported on the Companys consolidated balance sheets consists of foreign currency translation adjustments and the unrealized gains and losses, net of applicable taxes, on available-for-sale securities and on derivative instruments designated and qualifying as cash flow and net investment hedges. Comprehensive income, net of related tax effects (in millions): Fiscal Year Ended Sep27, 2009 Sep28, 2008 Sep30, 2007 Net earnings $ 390.8 $ 315.5 $ 672.6 Unrealized holding gains/(losses) on available-for-sale securities, net of tax (provision)/benefit of $(1.9), $2.4, and ($0.2) in 2009, 2008 and 2007, respectively 3.3 (4.0 ) 0.3 Unrealized holding gains/(losses) on cash flow hedging instruments, net of tax (provision)/benefit of $(2.4), ($0.4) and $7.5 in 2009, 2008 and 2007, respectively 4.0 0.7 (12.8 ) Unrealized holding losses on net investment hedging instruments, net of tax benefit of $4.0, $0.6 and $5.2 in 2009, 2008 and 2007, respectively (6.8 ) (0.9 ) (8.8 ) Reclassification adjustment for net losses realized in net earnings for cash flow hedges, net of tax benefit of $0.8, $3.0 and $0.5 in 2009, 2008 and 2007, respectively 1.3 5.0 0.9 Net unrealized gain/(loss) 1.8 0.8 (20.4 ) Translation adjustment, net of tax benefit of $6.0, $0.3 and $in 2009, 2008, and 2007, respectively 15.2 (7.0 ) 37.7 Total comprehensive income $ 407.8 $ 309.3 $ 689.9 The favorable translation adjustment change during fiscal 2009 of $15.2million was primarily d |
Employee Stock and Benefit Plan
Employee Stock and Benefit Plans | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Employee Stock Plans [Abstract] | |
Employee Stock and Benefit Plans | Note14: Employee Stock and Benefit Plans The Company maintains several equity incentive plans under which it may grant non-qualified stock options, incentive stock options, restricted stock, RSUs, or stock appreciation rights to employees, non-employee directors and consultants. The Company issues new shares of common stock upon exercise of stock options and the vesting of RSUs. The Company also has employee stock purchase plans (ESPP). As of September27, 2009, there were 38.2million shares of common stock available for issuance pursuant to future equity-based compensation awards and 9.8million shares available for issuance under its ESPP plans. Total stock based compensation and ESPP expense recognized in the consolidated financial statements (inmillions): Fiscal Year Ended Sep27, 2009 Sep28, 2008 Sep30, 2007 Stock option expense $ 61.6 $ 57.6 $ 92.3 RSU expense 16.6 5.6 ESPP expense 5.0 11.8 11.6 Total stock-based compensation expense on the consolidated statements of earnings $ 83.2 $ 75.0 $ 103.9 Total related tax benefit $ 29.3 $ 24.0 $ 35.3 Stock-based compensation capitalized in the respective fiscal year, as included in Net property, plant and equipment and inventories on the consolidated balance sheets $ 1.3 $ 1.9 $ 2.5 Stock Option Plans Stock options to purchase the Companys common stock are granted at the fair market value of the stock on the date of grant. The majority of options become exercisable in four equal installments beginning a year from the date of grant and generally expire 10years from the date of grant, except for options granted in the exchange program, described below, which have a seven year life. Options granted to non-employee directors generally vest over one to three years. Nearly all outstanding stock options are non-qualified stock options. The fair value of each stock option granted is estimated on the grant date using the Black-Scholes-Merton (BSM) option valuation model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Companys experience. Options granted are valued using the multiple option valuation approach, and the resulting expense is recognized over the requisite service period for each separately vesting portion of the award. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on the Companys historical experience and future expectations. On March18, 2009, Starbucks shareholders approved a proposal to allow for a one-time stock option exchange program, designed to provide eligible employees an opportunity to exchange certain outstanding underwater stock options for a lesser amount of new options to be granted with lower exercise prices. Stock options eligible for e |
Income Taxes
Income Taxes | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | Note15: Income Taxes Provision for income taxes (in millions): Fiscal Year Ended Sep27, 2009 Sep28, 2008 Sep30, 2007 Current taxes: Federal $ 165.3 $ 180.4 $ 326.7 State 35.0 34.3 65.3 Foreign 26.3 40.4 31.2 Deferred taxes, net (58.2 ) (111.1 ) (39.5 ) Total $ 168.4 $ 144.0 $ 383.7 Reconciliation of the statutory federal income tax rate with the Companys effective income tax rate: Fiscal Year Ended Sep27, 2009 Sep28, 2008 Sep30, 2007 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 2.6 2.8 3.4 Foreign earnings taxed at lower rates (2.3 ) (3.6 ) (1.1 ) Domestic production activity deduction (2.3 ) (2.6 ) (0.5 ) Credit resulting from employment audit (2.0 ) Other, net (0.9 ) (0.3 ) (0.5 ) Effective tax rate 30.1 % 31.3 % 36.3 % US income and foreign withholding taxes have not been provided on approximately $520million of cumulative undistributed earnings of foreign subsidiaries and equity investees. The Company intends to reinvest these earnings for the foreseeable future. If these amounts were distributed to the US, in the form of dividends or otherwise, the Company would be subject to additional US income taxes. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions): Sep27, 2009 Sep28, 2008 Deferred tax assets: Accrued occupancy costs $ 51.5 $ 54.8 Accrued compensation and related costs 70.1 56.2 Other accrued expenses 24.5 25.2 Asset retirement obligation asset 13.9 13.3 Deferred revenue 39.3 36.0 Asset impairments 99.7 80.8 Tax credits 61.4 26.1 Stock based compensation 96.6 79.6 Other 56.1 49.6 Total 513.1 421.6 Valuation allowance (20.3 ) (20.0 ) Total deferred tax asset, net of valuation allowance 492.8 401.6 Deferred tax liabilities: Property, plant and equipment |
Earnings Per Share
Earnings Per Share | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note16: Earnings per Share Calculation of net earnings per common share (EPS) basic and diluted (in millions, except EPS): Fiscal Year Ended Sep27, 2009 Sep28, 2008 Sep30, 2007 Net earnings $ 390.8 $ 315.5 $ 672.6 Weighted average common shares and common stock units outstanding (for basic calculation) 738.7 731.5 749.8 Dilutive effect of outstanding common stock options and RSUs 7.2 10.2 20.3 Weighted average common and common equivalent shares outstanding (for diluted calculation) 745.9 741.7 770.1 EPS basic $ 0.53 $ 0.43 $ 0.90 EPS diluted $ 0.52 $ 0.43 $ 0.87 Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and non-vested) and unvested RSUs, using the treasury stock method. Potential dilutive shares are excluded from the computation of earnings per share if their effect is antidilutive. The number of antidilutive options totaled 16.6million, 40.4million and 10.4million, in fiscal years 2009, 2008 and 2007, respectively. |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note17: Commitments and Contingencies Guarantees The Company has unconditionally guaranteed the repayment of certain Japanese yen-denominated bank loans and related interest and fees of an unconsolidated equity investee, Starbucks Japan. The guarantees continue until the loans, including accrued interest and fees, have been paid in full. The Companys maximum exposure under this commitment is disclosed in the table below and is limited to the sum of unpaid principal and interest, as well as other related expenses. These amounts will vary based on fluctuations in the yen foreign exchange rate. Starbucks has commitments under which it unconditionally guarantees its proportionate share of certain borrowings of unconsolidated equity investees. The Companys maximum exposure under these commitments disclosed in the table below excludes interest and other related costs. The fair value of these guarantees is included in Equity and cost investments and Other accrued expenses on the consolidated balance sheets. The following table presents information on unconditional guarantees as of September27, 2009 (in millions): Estimated Fair Value Maximum Year Guarantee Recorded on Exposure Expires in Balance Sheet Japanese yen-denominated bank loans $ 2.9 2014 $ (1) Borrowings of other unconsolidated equity investees $ 17.9 2009 to 2012 $ 3.7 (1) Since there has been no modification of these loan guarantees subsequent to the Companys adoption of accounting requirements for guarantees, Starbucks has applied the disclosure provisions only and has not recorded the guarantees on its consolidated balance sheets. Legal Proceedings On October8, 2004, a former hourly employee of the Company filed a lawsuit in SanDiego County Superior Court entitled Jou Chauv. Starbucks Coffee Company. The lawsuit alleged that the Company violated the California Labor Code by allowing shift supervisors to receive tips. More specifically, the lawsuit alleged that since shift supervisors direct the work of baristas, they qualify as agents of the Company and are therefore excluded from receiving tips under California Labor Code Section351, which prohibits employers and their agents from collecting or receiving tips left by patrons for other employees. The lawsuit further alleges that because the tipping practices violated the Labor Code, they were unfair practices under the California Unfair Competition Law. On February28, 2008, the trial court ruled against the Company in the liability phase of the trial and on March20, 2008 the court ordered the Company to pay approximately $87million in restitution, plus interest. The Company appealed the decision of the trial court and on June2, 2009 the California Court of Appeal reversed the trial courts judgment in its entirety and ruled in favor of Starbucks. The Court of Appeal denied plaintiffs petition for rehearing and reaffirmed its ruling on July2, 2009. The plaintiffs filed a petition for review with the California Supreme Court on July13, |
Segment Reporting
Segment Reporting | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Segment Reporting [Abstract] | |
Segment Reporting | Note18: Segment Reporting Segment information is prepared on the same basis that the Companys management reviews financial information for operational decision making purposes. Starbucks has three reportable operating segments: US, International and CPG. In the fourth fiscal quarter of 2009, the Company changed the composition of its reportable segments. The US foodservice business, which was previously reported in the US segment, is now reported in the CPG segment, as a result of internal management realignments within the US and CPG businesses. Segment information for all prior periods presented has been revised to reflect this change. United States The Companys US operations represent 80% of total Company-operated retail revenues, 33% of total specialty revenues and 73% of total net revenues for fiscal year 2009. US operations sell coffee and other beverages, complementary food, whole bean coffees, and coffee brewing equipment and merchandise primarily through Company-operated retail stores. Specialty operations within the US include licensed retail stores, and other initiatives related to the Companys core business. International The Companys International operations represent the remaining 20% of Company-operated retail revenues and 20% of total specialty revenues as well as 19% of total net revenues for fiscal year 2009. International operations sell coffee and other beverages, complementary food, whole bean coffees, and coffee brewing equipment and merchandise through Company-operated retail stores in the UK, Canada and several other markets. Specialty operations in International primarily include retail store licensing operations in nearly 40 countries and foodservice accounts, primarily in Canada and the UK. Many of the Companys International operations are in early stages of development that require a more extensive support organization, relative to the current levels of revenue and operating income, than in the US. Global Consumer Products Group The Companys CPG segment represents 47% of total specialty revenues and 8% of total net revenues for fiscal year 2009. CPG operations sell a selection of whole bean and ground coffees as well as a selection of premium Tazo teas through licensing arrangements in US and international markets. CPG operations also produce and sell ready-to-drink beverages which include, among others, bottled Frappuccino beverages, Starbucks DoubleShot espresso drinks, and Discoveries chilled cup coffee, as well as Starbucks super-premium ice creams through its marketing and distribution agreements and joint ventures. The US foodservice business sells coffee and other related products to institutional foodservice companies with the majority of its sales through national broadline distribution networks. Unallocated Corporate includes expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results of the operating segments. These unallocated corporate expenses include certain general and administrative expenses, |
Subsequent Event
Subsequent Event | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Subsequent Event [Abstract] | |
Subsequent Event | Note19: Subsequent Event On September30, 2009, Starbucks acquired 100percent ownership of the Companys business in France, converting it from a 50% joint venture with Sigla S.A. (Grupo Vips) of Spain to a Company-operated market. Starbucks simultaneously sold its 50% ownership interests in the Spain and Portugal markets to Grupo Vips, converting them to licensed markets. |
Summarized Quarterly Financial
Summarized Quarterly Financial Information (unaudited, in millions, except EPS) | |
12 Months Ended
Sep. 27, 2009 USD / shares | |
Summarized Quarterly Financial Information (unaudited, in millions, except EPS) [Abstract] | |
Summarized Quarterly Financial Information (unaudited, in millions, except EPS) | Note20: Summarized Quarterly Financial Information (unaudited, in millions, except EPS) First Second Third Fourth Total 2009: Net revenues $ 2,615.2 $ 2,333.3 $ 2,403.9 $ 2,422.2 $ 9,774.6 Operating income(1) 117.7 40.9 204.0 199.4 562.0 Net earnings(1) 64.3 25.0 151.5 150.0 390.8 EPS diluted 0.09 0.03 0.20 0.20 0.52 2008: Net revenues $ 2,767.6 $ 2,526.0 $ 2,574.0 $ 2,515.4 $ 10,383.0 Operating income/(loss)(2) 333.1 178.2 (21.6 ) 14.2 503.9 Net earnings/(loss)(2) 208.1 108.7 (6.7 ) 5.4 315.5 EPS diluted 0.28 0.15 (0.01 ) 0.01 0.43 (1) Includes pretax restructuring charges of $75.5million, $152.1million, $51.6million and $53.2million for the first, second, third and fourth fiscal quarters respectively. (2) Includes pretax restructuring charges of $167.7million and $99.2million for the third and fourth fiscal quarters, respectively. |