EXHIBIT 12.1
Starbucks Corporation
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratios)
Three Quarters Ended | Fiscal Years Ended | |||||||||||||||||||||||||||||||||
June 26, 2016 | Sep 27, 2015 | Sep 28, 2014 | Sep 29, 2013 | Sep 30, 2012 | Oct 2, 2011 | |||||||||||||||||||||||||||||
Earnings/(loss)(1) | $ | 2,983.4 | $ | 3,903.0 | $ | 3,159.7 | $ | (229.9 | ) | $ | 2,059.1 | $ | 1,811.1 | |||||||||||||||||||||
Income from equity investees | (212.3 | ) | (249.9 | ) | (268.3 | ) | (251.4 | ) | (210.7 | ) | (173.7 | ) | ||||||||||||||||||||||
Distributed income from equity investees | 139.4 | 148.2 | 139.2 | 115.6 | 86.7 | 85.6 | ||||||||||||||||||||||||||||
Amortization of capitalized interest | 3.3 | 4.1 | 3.6 | 2.6 | 2.2 | 1.8 | ||||||||||||||||||||||||||||
Fixed charges, excluding capitalized interest | 257.4 | 326.5 | 310.1 | 237.7 | 224.5 | 252.0 | ||||||||||||||||||||||||||||
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Total earnings/(loss) available for fixed charges | $ | 3,171.2 | $ | 4,131.9 | $ | 3,344.3 | $ | (125.4 | ) | $ | 2,161.8 | $ | 1,976.8 | |||||||||||||||||||||
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Fixed charges: | ||||||||||||||||||||||||||||||||||
Interest and debt expense(2) | $ | 57.5 | $ | 74.2 | $ | 70.2 | $ | 38.5 | $ | 35.9 | $ | 37.7 | ||||||||||||||||||||||
Interest portion of rental expense | 200.8 | 256.0 | 246.0 | 209.6 | 191.8 | 218.7 | ||||||||||||||||||||||||||||
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Total fixed charges | $ | 258.3 | $ | 330.2 | $ | 316.2 | $ | 248.1 | $ | 227.7 | $ | 256.4 | ||||||||||||||||||||||
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Ratio of earnings to fixed charges(3) | 12.3 | 12.5 | 10.6 | — | 9.5 | 7.7 |
(1) | Earnings/(loss) represents income/(loss) from continuing operations before income taxes. |
(2) | Includes amortization of debt-related expenses and interest capitalized during the period. Excludes interest on uncertain tax positions, which is recorded in income tax expense/(benefit) in the consolidated statements of earnings. |
(3) | For the fiscal year ended September 29, 2013, our earnings were insufficient to cover fixed charges by $373.5 million. |