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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Starbucks Corporation | NASDAQ:SBUX | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-1.51 | -2.02% | 73.42 | 72.89 | 74.52 | 75.51 | 72.985 | 75.27 | 22,153,875 | 05:00:08 |
Washington
|
91-1325671
|
(State of Incorporation)
|
(IRS Employer ID)
|
Title of Each Class
|
Trading Symbol
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.001 par value per share
|
SBUX
|
Nasdaq Global Select Market
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
PART I
|
||
Item 1
|
||
Item 1A
|
||
Item 1B
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
PART II
|
||
Item 5
|
||
Item 6
|
||
Item 7
|
||
Item 7A
|
||
Item 8
|
||
|
||
|
||
Item 9
|
||
Item 9A
|
||
Item 9B
|
||
PART III
|
||
Item 10
|
||
Item 11
|
||
Item 12
|
||
Item 13
|
||
Item 14
|
||
PART IV
|
||
Item 15
|
||
|
Americas
|
|
As a% of
Total
Americas Stores
|
|
International
|
|
As a% of
Total International Stores |
|
Total
|
|
As a% of
Total
Stores
|
||||||
Company-operated stores
|
9,974
|
|
|
55
|
%
|
|
5,860
|
|
|
44
|
%
|
|
15,834
|
|
|
51
|
%
|
Licensed stores
|
8,093
|
|
|
45
|
%
|
|
7,329
|
|
|
56
|
%
|
|
15,422
|
|
|
49
|
%
|
Total
|
18,067
|
|
|
100
|
%
|
|
13,189
|
|
|
100
|
%
|
|
31,256
|
|
|
100
|
%
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Sep 30, 2018
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Sep 29, 2019
|
||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
8,575
|
|
|
412
|
|
|
(196
|
)
|
|
—
|
|
|
216
|
|
|
8,791
|
|
Canada
|
1,109
|
|
|
82
|
|
|
(16
|
)
|
|
—
|
|
|
66
|
|
|
1,175
|
|
Siren Retail
|
6
|
|
|
3
|
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
8
|
|
Total Americas
|
9,690
|
|
|
497
|
|
|
(213
|
)
|
|
—
|
|
|
284
|
|
|
9,974
|
|
International (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
China
|
3,521
|
|
|
629
|
|
|
(27
|
)
|
|
—
|
|
|
602
|
|
|
4,123
|
|
Japan
|
1,286
|
|
|
105
|
|
|
(12
|
)
|
|
—
|
|
|
93
|
|
|
1,379
|
|
Thailand
|
352
|
|
|
29
|
|
|
(4
|
)
|
|
(377
|
)
|
|
(352
|
)
|
|
—
|
|
U.K.
|
335
|
|
|
6
|
|
|
(53
|
)
|
|
—
|
|
|
(47
|
)
|
|
288
|
|
All Other
|
155
|
|
|
1
|
|
|
(9
|
)
|
|
(82
|
)
|
|
(90
|
)
|
|
65
|
|
Siren Retail
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
5
|
|
Total International
|
5,651
|
|
|
773
|
|
|
(105
|
)
|
|
(459
|
)
|
|
209
|
|
|
5,860
|
|
Total company-operated
|
15,341
|
|
|
1,270
|
|
|
(318
|
)
|
|
(459
|
)
|
|
493
|
|
|
15,834
|
|
(1)
|
International store data includes the transfer of 377 company-operated stores in Thailand to licensed stores as a result of the sale of operations late in the third quarter of fiscal 2019, and the transfer of 82 company-operated stores in France and the Netherlands to licensed stores as a result of the sales of operations in the second quarter of fiscal 2019.
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|||
Beverages
|
74
|
%
|
|
74
|
%
|
|
73
|
%
|
Food
|
20
|
%
|
|
20
|
%
|
|
20
|
%
|
Packaged and single-serve coffees and teas
|
1
|
%
|
|
2
|
%
|
|
3
|
%
|
Other (1)
|
5
|
%
|
|
4
|
%
|
|
4
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
“Other” primarily consists of sales of serveware and ready-to-drink beverages, among other items.
|
|
Stores Open
as of
|
|
|
|
|
|
|
|
|
|
Stores Open
as of
|
||||||
|
Sep 30, 2018
|
|
Opened
|
|
Closed
|
|
Transfers
|
|
Net
|
|
Sep 29, 2019
|
||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
6,031
|
|
|
318
|
|
|
(99
|
)
|
|
—
|
|
|
219
|
|
|
6,250
|
|
Mexico
|
708
|
|
|
49
|
|
|
(9
|
)
|
|
—
|
|
|
40
|
|
|
748
|
|
Latin America
|
622
|
|
|
45
|
|
|
(4
|
)
|
|
—
|
|
|
41
|
|
|
663
|
|
Canada
|
409
|
|
|
34
|
|
|
(11
|
)
|
|
—
|
|
|
23
|
|
|
432
|
|
Total Americas
|
7,770
|
|
|
446
|
|
|
(123
|
)
|
|
—
|
|
|
323
|
|
|
8,093
|
|
International (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Korea
|
1,231
|
|
|
128
|
|
|
(25
|
)
|
|
—
|
|
|
103
|
|
|
1,334
|
|
U.K.
|
653
|
|
|
60
|
|
|
(6
|
)
|
|
—
|
|
|
54
|
|
|
707
|
|
Turkey
|
453
|
|
|
47
|
|
|
(6
|
)
|
|
—
|
|
|
41
|
|
|
494
|
|
Taiwan
|
458
|
|
|
35
|
|
|
(13
|
)
|
|
—
|
|
|
22
|
|
|
480
|
|
Indonesia
|
365
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
421
|
|
Philippines
|
360
|
|
|
39
|
|
|
(2
|
)
|
|
—
|
|
|
37
|
|
|
397
|
|
Thailand
|
—
|
|
|
15
|
|
|
—
|
|
|
377
|
|
|
392
|
|
|
392
|
|
All Other
|
2,681
|
|
|
396
|
|
|
(55
|
)
|
|
82
|
|
|
423
|
|
|
3,104
|
|
Total International
|
6,201
|
|
|
776
|
|
|
(107
|
)
|
|
459
|
|
|
1,128
|
|
|
7,329
|
|
Corporate and Other:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Teavana
|
12
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
Total Corporate and Other
|
12
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
Total licensed
|
13,983
|
|
|
1,222
|
|
|
(242
|
)
|
|
459
|
|
|
1,439
|
|
|
15,422
|
|
(1)
|
International store data includes the transfer of 377 company-operated stores in Thailand to licensed stores as a result of the sale of operations late in the third quarter of fiscal 2019, and the transfer of 82 company-operated stores in France and the Netherlands to licensed stores as a result of the sales of operations in the second quarter of fiscal 2019.
|
Name
|
|
Age
|
|
Position
|
Kevin R. Johnson
|
|
59
|
|
president and chief executive officer
|
Rosalind G. Brewer
|
|
57
|
|
group president, Americas and chief operating officer
|
Cliff Burrows
|
|
60
|
|
group president, Siren Retail
|
John Culver
|
|
59
|
|
group president, International, Channel Development and Global Coffee & Tea
|
Rachel A. Gonzalez
|
|
50
|
|
executive vice president, general counsel and secretary
|
Patrick J. Grismer
|
|
57
|
|
executive vice president, chief financial officer
|
Lucy Lee Helm
|
|
62
|
|
executive vice president, chief partner officer
|
John Kelly
|
|
53
|
|
executive vice president, Global Public Affairs and Social Impact
|
•
|
Economic conditions in the U.S. and international markets could adversely affect our business and financial results.
|
•
|
Our success depends substantially on the value of our brands and failure to preserve their value could have a negative impact on our financial results.
|
•
|
If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments, it could damage our brand and our financial results could suffer.
|
•
|
Incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling, whether or not accurate, as well as adverse public or medical opinions about the health effects of consuming our products, could harm our business.
|
•
|
The unauthorized access, use, theft or destruction of customer or employee personal, financial or other data or of Starbucks proprietary or confidential information that is stored in our information systems or by third parties on our behalf could impact our reputation and brand and expose us to potential liability and loss of revenues.
|
•
|
We rely heavily on information technology in our operations and growth initiatives, and any material failure, inadequacy, interruption or security failure of that technology could harm our ability to effectively operate and grow our business and could adversely affect our financial results.
|
•
|
We may not be successful in implementing important strategic initiatives or effectively managing growth, which may have an adverse impact on our business and financial results.
|
•
|
being an employer of choice and investing in employees to deliver a superior customer experience;
|
•
|
building our leadership position around coffee;
|
•
|
driving convenience, brand engagement and digital relationships through our mobile, loyalty, delivery and digital capabilities both domestically and internationally;
|
•
|
simplifying store administrative tasks to allow store partners to better engage with customers;
|
•
|
increasing the scale of the Starbucks store footprint with disciplined global expansion and introducing flexible and unique store formats;
|
•
|
moving to a more licensed store model in some markets and a more company-owned model in other markets;
|
•
|
creating new occasions in stores across all dayparts with new product offerings, including our growing lunch food and beverage product lineup;
|
•
|
continuing the global growth of our Channel Development business through our supply, distribution and licensing agreements with Nestlé and other Channel Development business partners;
|
•
|
delivering continued growth in our cold beverage business, including our tea business through the Teavana brand in our Starbucks® retail stores and other channels and internationally; and
|
•
|
reducing our operating costs, particularly general and administrative expenses.
|
•
|
imposition of additional taxes by jurisdictions, such as on certain types of beverages or based on number of employees;
|
•
|
construction cost increases associated with new store openings and remodeling of existing stores; delays in store openings for reasons beyond our control or a lack of desirable real estate locations available for lease at reasonable rates, either of which could keep us from meeting annual store opening targets in the U.S. and internationally;
|
•
|
not successfully scaling our supply chain infrastructure as our product offerings increase and as we continue to expand, including our emphasis on a broad range of high-quality food offerings; and
|
•
|
the deterioration in our credit ratings, which could limit the availability of additional financing and increase the cost of obtaining financing to fund our initiatives.
|
•
|
Evolving consumer preferences and tastes may adversely affect our business.
|
•
|
Our reliance on key business partners may adversely affect our business and operations.
|
•
|
Changes in the availability of and the cost of labor could adversely affect our business.
|
•
|
We face intense competition in each of our channels and markets, which could lead to reduced profitability.
|
•
|
We are highly dependent on the financial performance of our Americas operating segment.
|
•
|
We are increasingly dependent on the success of certain international markets in order to achieve our growth targets.
|
•
|
the effects of current U.S.-China relations, including rounds of tariff increases and retaliations and increasing restrictive regulations, potential boycotts and increasing anti-Americanism;
|
•
|
entry of new competitors to the specialty coffee market in China;
|
•
|
changes in economic conditions in China and potential negative effects to the growth of its middle class, wages, labor, inflation discretionary spending and real estate and supply chain costs;
|
•
|
ongoing government regulatory reform, including relating to food safety, tariffs and tax, bringing uncertainty and inconsistent interpretations, which may be contrary to ours, as well as potential significant increases in compliance costs;
|
•
|
food-safety related matters, including compliance with food-safety regulations and ability to ensure product quality and safety; and
|
•
|
the ability to successfully integrate the East China business.
|
•
|
We face risks as a global business that could adversely affect our financial performance.
|
•
|
foreign currency exchange rate fluctuations, or requirements to transact in specific currencies;
|
•
|
changes or uncertainties in economic, legal, regulatory, social and political conditions in our markets, as well as negative effects on U.S. businesses due to increasing anti-American sentiment in certain markets;
|
•
|
interpretation and application of laws and regulations, including tax, tariffs, labor, merchandise, anti-bribery and privacy laws and regulations;
|
•
|
uncertainties and effects of the implementation of the United Kingdom's referendum to withdraw membership from the European Union (referred to as “Brexit”), including financial, legal, tax and trade implications;
|
•
|
restrictive actions of foreign or U.S. governmental authorities affecting trade and foreign investment, especially during periods of heightened tension between the U.S. and such foreign governmental authorities, including protective measures such as export and customs duties and tariffs, government intervention favoring local competitors, and restrictions on the level of foreign ownership;
|
•
|
import or other business licensing requirements;
|
•
|
the enforceability of intellectual property and contract rights;
|
•
|
limitations on the repatriation of funds and foreign currency exchange restrictions due to current or new U.S. and international regulations;
|
•
|
in developing economies, the growth rate in the portion of the population achieving sufficient levels of disposable income may not be as fast as we forecast;
|
•
|
difficulty in staffing, developing and managing foreign operations and supply chain logistics, including ensuring the consistency of product quality and service, due to governmental actions affecting supply chain logistics, distance, language and cultural differences, as well as challenges in recruiting and retaining high quality employees in local markets;
|
•
|
local laws that make it more expensive and complex to negotiate with, retain or terminate employees; and
|
•
|
delays in store openings for reasons beyond our control, competition with locally relevant competitors or a lack of desirable real estate locations available for lease at reasonable rates, any of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revenues, operating income and earnings per share.
|
•
|
Increases in the cost of high-quality arabica coffee beans or other commodities or decreases in the availability of high-quality arabica coffee beans or other commodities could have an adverse impact on our business and financial results.
|
•
|
Our financial condition and results of operations are sensitive to, and may be adversely affected by, a number of factors, many of which are largely outside our control.
|
•
|
increases in real estate costs in certain domestic and international markets;
|
•
|
adverse outcomes of litigation;
|
•
|
severe weather or other natural or man-made disasters affecting a large market or several closely located markets that may temporarily but significantly affect our retail business in such markets;
|
•
|
especially in our large markets, labor discord or disruption, geopolitical events, war, terrorism (including incidents targeting us), political instability, acts of public violence, boycotts, increasing anti-American sentiment in certain markets, social unrest, and health pandemics that lead to avoidance of public places or restrictions on public gatherings such as in our stores; and
|
•
|
the discontinuation of the London Interbank Offered Rate (“LIBOR”) after 2021 and the replacement with an alternative reference rate may adversely impact interest rates.
|
•
|
Interruption of our supply chain could affect our ability to produce or deliver our products and could negatively impact our business and profitability.
|
•
|
Failure to meet market expectations for our financial performance and fluctuations in the stock market as a whole will likely adversely affect the market price and volatility of our stock.
|
•
|
The loss of key personnel or difficulties recruiting and retaining qualified personnel could adversely impact our business and financial results.
|
•
|
Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and financial results.
|
Item 2.
|
Properties
|
Location
|
Approximate Size
in Square Feet |
|
Purpose
|
|
Minden, NV (Carson Valley)
|
1,080,000
|
|
|
Roasting, warehousing and distribution
|
York, PA
|
1,957,435
|
|
|
Roasting, warehousing and distribution
|
Lebanon, TN
|
680,000
|
|
|
Warehousing and distribution
|
Auburn, WA
|
491,000
|
|
|
Warehousing and distribution
|
Kent, WA
|
510,000
|
|
|
Roasting and distribution
|
Seattle, WA
|
1,283,000
|
|
|
Corporate administrative
|
Shanghai, China
|
177,000
|
|
|
Corporate administrative
|
Item 3.
|
Legal Proceedings
|
|
|
Total
Number of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs (2) |
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or Programs (3) |
|||||
Period (1)
|
|
|
|
|
|
|
|
|
|||||
July 1, 2019 - July 28, 2019
|
|
10,925,000
|
|
|
$
|
89.32
|
|
|
10,925,000
|
|
|
41,773,146
|
|
July 29, 2019 - August 25, 2019
|
|
8,267,159
|
|
|
95.61
|
|
|
8,267,159
|
|
|
33,505,987
|
|
|
August 26, 2019 - September 29, 2019
|
|
4,339,988
|
|
|
94.68
|
|
|
4,339,988
|
|
|
29,165,999
|
|
|
Total
|
|
23,532,147
|
|
|
$
|
92.52
|
|
|
23,532,147
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the fourth quarter of fiscal 2019.
|
(2)
|
Share repurchases are conducted under our ongoing share repurchase program announced in September 2001, which has no expiration date.
|
(3)
|
This column includes the total number of shares available for repurchase under the Company's ongoing share repurchase program. Shares under our ongoing share repurchase program may be repurchased in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, or through privately negotiated transactions. The timing, manner, price and amount of repurchases will be determined at our discretion, and the share repurchase program may be suspended, terminated or modified at any time for any reason.
|
|
Sep 28, 2014
|
|
Sep 27, 2015
|
|
Oct 2, 2016
|
|
Oct 1, 2017
|
|
Sep 30, 2018
|
|
Sep 29, 2019
|
||||||||||||
Starbucks Corporation
|
$
|
100.00
|
|
|
$
|
156.42
|
|
|
$
|
148.03
|
|
|
$
|
149.49
|
|
|
$
|
161.87
|
|
|
$
|
256.48
|
|
S&P 500
|
100.00
|
|
|
99.39
|
|
|
114.72
|
|
|
136.07
|
|
|
160.44
|
|
|
167.27
|
|
||||||
NASDAQ Composite
|
100.00
|
|
|
104.00
|
|
|
121.08
|
|
|
149.75
|
|
|
187.44
|
|
|
188.43
|
|
||||||
S&P Consumer Discretionary
|
100.00
|
|
|
113.18
|
|
|
124.09
|
|
|
142.10
|
|
|
188.34
|
|
|
192.78
|
|
As of and for the Fiscal Year Ended (1)
|
Sept 29,
2019 (52 Wks) |
|
Sept 30,
2018 (52 Wks) |
|
Oct 1,
2017 (52 Wks) |
|
Oct 2,
2016 (53 Wks) |
|
Sep 27,
2015 (52 Wks) |
|||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net revenues:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Company-operated stores
|
$
|
21,544.4
|
|
|
$
|
19,690.3
|
|
|
$
|
17,650.7
|
|
|
$
|
16,844.1
|
|
|
$
|
15,197.3
|
|
|
Licensed stores
|
2,875.0
|
|
|
2,652.2
|
|
|
2,355.0
|
|
|
2,154.2
|
|
|
1,861.9
|
|
||||||
Other
|
2,089.2
|
|
|
2,377.0
|
|
|
2,381.1
|
|
|
2,317.6
|
|
|
2,103.5
|
|
||||||
Total net revenues
|
$
|
26,508.6
|
|
|
$
|
24,719.5
|
|
|
$
|
22,386.8
|
|
|
$
|
21,315.9
|
|
|
$
|
19,162.7
|
|
|
Operating income/(loss)
|
$
|
4,077.9
|
|
|
$
|
3,883.3
|
|
|
$
|
4,134.7
|
|
|
$
|
4,171.9
|
|
|
$
|
3,601.0
|
|
|
Net earnings including noncontrolling interests (2)
|
3,594.6
|
|
|
4,518.0
|
|
|
2,884.9
|
|
|
2,818.9
|
|
|
2,759.3
|
|
||||||
Net earnings/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|
1.2
|
|
|
1.9
|
|
||||||
Net earnings attributable to Starbucks (2)
|
3,599.2
|
|
|
4,518.3
|
|
|
2,884.7
|
|
|
2,817.7
|
|
|
2,757.4
|
|
||||||
EPS — diluted (2)
|
2.92
|
|
|
3.24
|
|
|
1.97
|
|
|
1.90
|
|
|
1.82
|
|
||||||
Cash dividends declared per share
|
1.49
|
|
|
1.32
|
|
|
1.05
|
|
|
0.85
|
|
|
0.68
|
|
||||||
Net cash provided by operating activities (3)
|
5,047.0
|
|
|
11,937.8
|
|
|
4,251.8
|
|
|
4,697.9
|
|
|
3,881.5
|
|
||||||
Capital expenditures (additions to property, plant and equipment)
|
1,806.6
|
|
|
1,976.4
|
|
|
1,519.4
|
|
|
1,440.3
|
|
|
1,303.7
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets
|
$
|
19,219.6
|
|
|
$
|
24,156.4
|
|
|
$
|
14,365.6
|
|
|
$
|
14,312.5
|
|
|
$
|
12,404.1
|
|
|
Long-term debt (including current portion)
|
11,167.0
|
|
|
9,440.1
|
|
|
3,932.6
|
|
|
3,585.2
|
|
|
2,335.3
|
|
||||||
Shareholders’ equity/(deficit)
|
(6,232.2
|
)
|
|
1,169.5
|
|
|
5,450.1
|
|
|
5,884.0
|
|
|
5,818.0
|
|
(1)
|
Our fiscal year ends on the Sunday closest to September 30. The fiscal year ending on October 2, 2016 included 53 weeks, with the 53rd week falling in our fourth fiscal quarter.
|
(2)
|
Fiscal 2018 results include a gain not subject to income tax of $1.4 billion resulting from the acquisition of our East China joint venture. The impact of the gain to our diluted EPS was $0.99.
|
(3)
|
Net cash provided by operating activities for fiscal 2015 through fiscal 2017 has been adjusted for the adoption of new accounting guidance related to excess tax benefits as discussed in Note 1, Summary of Significant Accounting Policies.
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Oct 2,
2016 |
|
Sep 27,
2015 |
||||||
Percentage change in comparable store sales (1)
|
|
|
|
|
|
|
|
|
|
||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
5
|
%
|
|
2
|
%
|
|
3
|
%
|
|
6
|
%
|
|
7
|
%
|
|
Change in transactions
|
2
|
%
|
|
(1
|
)%
|
|
—
|
%
|
|
1
|
%
|
|
3
|
%
|
|
Change in ticket
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
5
|
%
|
|
4
|
%
|
|
International (2)
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
3
|
%
|
|
1
|
%
|
|
2
|
%
|
|
2
|
%
|
|
6
|
%
|
|
Change in transactions
|
1
|
%
|
|
(1
|
)%
|
|
1
|
%
|
|
1
|
%
|
|
5
|
%
|
|
Change in ticket
|
2
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
||||||
Sales growth
|
5
|
%
|
|
2
|
%
|
|
3
|
%
|
|
5
|
%
|
|
7
|
%
|
|
Change in transactions
|
1
|
%
|
|
(1
|
)%
|
|
—
|
%
|
|
1
|
%
|
|
3
|
%
|
|
Change in ticket
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
4
|
%
|
(1)
|
Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates and the results of our global Siren Retail operations. For fiscal year 2016, comparable store sales percentages were calculated excluding the 53rd week.
|
(2)
|
Beginning in February of fiscal 2019, comparable store sales include the results of the transfer of 1,477 licensed stores in East China to company-operated retail stores as a result of the purchase of our East China joint venture in the first quarter of fiscal 2018. Beginning in December of fiscal 2016, comparable store sales include the results of the 1,009 company-operated stores acquired as part of the acquisition of Starbucks Japan in the first quarter of fiscal 2015.
|
As of and for the Fiscal Year Ended
|
Sept 29,
2019 (52 Wks) |
|
Sept 30,
2018 (52 Wks) |
|
Oct 1,
2017 (52 Wks) |
|
Oct 2,
2016 (53 Wks) |
|
Sep 27,
2015 (52 Wks) |
||||||
Net stores opened/(closed) and transferred during the year:
|
|
|
|
|
|
|
|
|
|
||||||
Americas (1)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
284
|
|
|
275
|
|
|
395
|
|
|
348
|
|
|
277
|
|
|
Licensed stores
|
323
|
|
|
624
|
|
|
558
|
|
|
456
|
|
|
336
|
|
|
International (2)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
209
|
|
|
2,079
|
|
|
238
|
|
|
145
|
|
|
1,240
|
|
|
Licensed stores
|
1,128
|
|
|
(680
|
)
|
|
1,130
|
|
|
1,116
|
|
|
(180
|
)
|
|
Corporate and Other (3)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
—
|
|
|
(288
|
)
|
|
(69
|
)
|
|
(17
|
)
|
|
5
|
|
|
Licensed stores
|
(12
|
)
|
|
(25
|
)
|
|
2
|
|
|
(6
|
)
|
|
(1
|
)
|
|
Total
|
1,932
|
|
|
1,985
|
|
|
2,254
|
|
|
2,042
|
|
|
1,677
|
|
|
Stores open at year end:
|
|
|
|
|
|
|
|
|
|
||||||
Americas (1)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
9,974
|
|
|
9,690
|
|
|
9,415
|
|
|
9,020
|
|
|
8,672
|
|
|
Licensed stores
|
8,093
|
|
|
7,770
|
|
|
7,146
|
|
|
6,588
|
|
|
6,132
|
|
|
International (2)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
5,860
|
|
|
5,651
|
|
|
3,572
|
|
|
3,334
|
|
|
3,189
|
|
|
Licensed stores
|
7,329
|
|
|
6,201
|
|
|
6,881
|
|
|
5,751
|
|
|
4,635
|
|
|
Corporate and Other (3)
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
—
|
|
|
—
|
|
|
288
|
|
|
357
|
|
|
374
|
|
|
Licensed stores
|
—
|
|
|
12
|
|
|
37
|
|
|
35
|
|
|
41
|
|
|
Total
|
31,256
|
|
|
29,324
|
|
|
27,339
|
|
|
25,085
|
|
|
23,043
|
|
(1)
|
Americas store data includes the transfer of 112 company-operated retail stores in Brazil to licensed stores as a result of the sale of our Brazil retail operations in the second quarter of fiscal 2018 and the closure of 132 Target Canada licensed stores in the second quarter of fiscal 2015.
|
(2)
|
International store data includes in fiscal 2019 the transfer of 82 company-operated stores in France and the Netherlands to licensed stores as a result of the sales of operations in the second quarter and the transfer of 377 company-operated stores in Thailand to licensed stores as a result of the sale of operations late in the third quarter. Additionally, store data includes the transfer of 1,477 licensed stores in East China to company-operated retail stores as a result of the purchase of our East China joint venture in the first quarter of fiscal 2018, the transfer of 133 Singapore stores from company-operated stores to licensed stores in fiscal 2017, the transfer of 144 Germany company-operated stores to licensed stores in fiscal 2016, and the transfer of 1,009 Japan stores from licensed stores to company-operated as a result of the acquisition of Starbucks Japan in fiscal 2015.
|
(3)
|
Corporate and Other store data includes the closure of 313 Teavana retail stores in fiscal 2018 and 12 Teavana retail stores in the first quarter of fiscal 2019.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Total net revenues increased 7% to $26.5 billion in fiscal 2019 compared to $24.7 billion in fiscal 2018.
|
•
|
Consolidated operating income increased to $4.1 billion in fiscal 2019 compared to operating income of $3.9 billion in fiscal 2018. Fiscal 2019 operating margin was 15.4% compared to 15.7% in fiscal 2018. Operating margin compression in fiscal 2019 was primarily driven by partner (employee) investments and growth in wages and benefits, licensing our CPG and Foodservice businesses to Nestlé and other strategic investments. These decreases were partially offset by sales leverage, cost savings initiatives, lower restructuring and impairment costs and the impact of the adoption of new revenue recognition guidance on stored value card breakage.
|
•
|
Earnings per share (“EPS”) for fiscal 2019 decreased to $2.92, compared to EPS of $3.24 in fiscal 2018. The decrease was primarily driven by lapping the prior year gains from the acquisition of our East China joint venture and the sale of our Tazo brand, partially offset by the gain from the sale of our Thailand retail operations during fiscal 2019.
|
•
|
Capital expenditures were $1.8 billion in fiscal 2019 compared to $2.0 billion in fiscal 2018.
|
•
|
We returned $12.0 billion to our shareholders in fiscal 2019 through share repurchases and dividends compared to $8.9 billion in fiscal 2018.
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
21,544.4
|
|
|
$
|
19,690.3
|
|
|
9.4
|
%
|
Licensed stores
|
2,875.0
|
|
|
2,652.2
|
|
|
8.4
|
|
||
Other
|
2,089.2
|
|
|
2,377.0
|
|
|
(12.1
|
)
|
||
Total net revenues
|
$
|
26,508.6
|
|
|
$
|
24,719.5
|
|
|
7.2
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Cost of sales
|
$
|
8,526.9
|
|
|
$
|
7,930.7
|
|
|
32.2
|
%
|
|
32.1
|
%
|
Store operating expenses
|
10,493.6
|
|
|
9,472.2
|
|
|
39.6
|
|
|
38.3
|
|
||
Other operating expenses
|
371.0
|
|
|
554.9
|
|
|
1.4
|
|
|
2.2
|
|
||
Depreciation and amortization expenses
|
1,377.3
|
|
|
1,247.0
|
|
|
5.2
|
|
|
5.0
|
|
||
General and administrative expenses
|
1,824.1
|
|
|
1,708.2
|
|
|
6.9
|
|
|
6.9
|
|
||
Restructuring and impairments
|
135.8
|
|
|
224.4
|
|
|
0.5
|
|
|
0.9
|
|
||
Total operating expenses
|
22,728.7
|
|
|
21,137.4
|
|
|
85.7
|
|
|
85.5
|
|
||
Income from equity investees
|
298.0
|
|
|
301.2
|
|
|
1.1
|
|
|
1.2
|
|
||
Operating income
|
$
|
4,077.9
|
|
|
$
|
3,883.3
|
|
|
15.4
|
%
|
|
15.7
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
48.7
|
%
|
|
48.1
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Operating income
|
$
|
4,077.9
|
|
|
$
|
3,883.3
|
|
|
15.4
|
%
|
|
15.7
|
%
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
1,376.4
|
|
|
—
|
|
|
5.6
|
|
||
Net gain resulting from divestiture of certain operations
|
622.8
|
|
|
499.2
|
|
|
2.3
|
|
|
2.0
|
|
||
Interest income and other, net
|
96.5
|
|
|
191.4
|
|
|
0.4
|
|
|
0.8
|
|
||
Interest expense
|
(331.0
|
)
|
|
(170.3
|
)
|
|
(1.2
|
)
|
|
(0.7
|
)
|
||
Earnings before income taxes
|
4,466.2
|
|
|
5,780.0
|
|
|
16.8
|
|
|
23.4
|
|
||
Income tax expense
|
871.6
|
|
|
1,262.0
|
|
|
3.3
|
|
|
5.1
|
|
||
Net earnings including noncontrolling interests
|
3,594.6
|
|
|
4,518.0
|
|
|
13.6
|
|
|
18.3
|
|
||
Net earnings/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
3,599.2
|
|
|
$
|
4,518.3
|
|
|
13.6
|
%
|
|
18.3
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
19.5
|
%
|
|
21.8
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
16,288.2
|
|
|
$
|
14,921.5
|
|
|
89.2
|
%
|
|
89.1
|
%
|
Licensed stores
|
1,958.0
|
|
|
1,814.0
|
|
|
10.7
|
|
|
10.8
|
|
||
Other
|
12.8
|
|
|
13.1
|
|
|
0.1
|
|
|
0.1
|
|
||
Total net revenues
|
18,259.0
|
|
|
16,748.6
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
5,174.7
|
|
|
4,884.1
|
|
|
28.3
|
|
|
29.2
|
|
||
Store operating expenses
|
8,064.8
|
|
|
7,248.6
|
|
|
44.2
|
|
|
43.3
|
|
||
Other operating expenses
|
159.8
|
|
|
151.2
|
|
|
0.9
|
|
|
0.9
|
|
||
Depreciation and amortization expenses
|
696.1
|
|
|
641.0
|
|
|
3.8
|
|
|
3.8
|
|
||
General and administrative expenses
|
323.9
|
|
|
305.1
|
|
|
1.8
|
|
|
1.8
|
|
||
Restructuring and impairments
|
56.9
|
|
|
33.4
|
|
|
0.3
|
|
|
0.2
|
|
||
Total operating expenses
|
14,476.2
|
|
|
13,263.4
|
|
|
79.3
|
|
|
79.2
|
|
||
Operating income
|
$
|
3,782.8
|
|
|
$
|
3,485.2
|
|
|
20.7
|
%
|
|
20.8
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of International
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
5,256.2
|
|
|
$
|
4,702.1
|
|
|
84.9
|
%
|
|
84.7
|
%
|
Licensed stores
|
917.0
|
|
|
837.0
|
|
|
14.8
|
|
|
15.1
|
|
||
Other
|
17.5
|
|
|
12.1
|
|
|
0.3
|
|
|
0.2
|
|
||
Total net revenues
|
6,190.7
|
|
|
5,551.2
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
1,894.9
|
|
|
1,709.4
|
|
|
30.6
|
|
|
30.8
|
|
||
Store operating expenses
|
2,428.5
|
|
|
2,182.3
|
|
|
39.2
|
|
|
39.3
|
|
||
Other operating expenses
|
116.4
|
|
|
98.9
|
|
|
1.9
|
|
|
1.8
|
|
||
Depreciation and amortization expenses
|
511.5
|
|
|
447.6
|
|
|
8.3
|
|
|
8.1
|
|
||
General and administrative expenses
|
317.9
|
|
|
302.5
|
|
|
5.1
|
|
|
5.4
|
|
||
Restructuring and impairments
|
59.2
|
|
|
55.1
|
|
|
1.0
|
|
|
1.0
|
|
||
Total operating expenses
|
5,328.4
|
|
|
4,795.8
|
|
|
86.1
|
|
|
86.4
|
|
||
Income from equity investees
|
102.4
|
|
|
117.4
|
|
|
1.7
|
|
|
2.1
|
|
||
Operating income
|
$
|
964.7
|
|
|
$
|
872.8
|
|
|
15.6
|
%
|
|
15.7
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues
|
||||||||
Net revenues
|
$
|
1,992.6
|
|
|
$
|
2,297.3
|
|
|
|
|
|
||
Cost of sales
|
1,390.0
|
|
|
1,252.3
|
|
|
69.8
|
|
|
54.5
|
|
||
Other operating expenses
|
76.2
|
|
|
286.5
|
|
|
3.8
|
|
|
12.5
|
|
||
Depreciation and amortization expenses
|
13.0
|
|
|
1.3
|
|
|
0.7
|
|
|
0.1
|
|
||
General and administrative expenses
|
11.5
|
|
|
13.9
|
|
|
0.6
|
|
|
0.6
|
|
||
Total operating expenses
|
1,490.7
|
|
|
1,554.0
|
|
|
74.8
|
|
|
67.6
|
|
||
Income from equity investees
|
195.6
|
|
|
183.8
|
|
|
9.8
|
|
|
8.0
|
|
||
Operating income
|
$
|
697.5
|
|
|
$
|
927.1
|
|
|
35.0
|
%
|
|
40.4
|
%
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
% Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
—
|
|
|
$
|
66.7
|
|
|
(100.0
|
)%
|
Licensed stores
|
—
|
|
|
1.2
|
|
|
(100.0
|
)
|
||
Other
|
66.3
|
|
|
54.5
|
|
|
21.7
|
|
||
Total net revenues
|
66.3
|
|
|
122.4
|
|
|
(45.8
|
)
|
||
Cost of sales
|
67.3
|
|
|
84.9
|
|
|
(20.7
|
)
|
||
Store operating expenses
|
0.3
|
|
|
41.3
|
|
|
(99.3
|
)
|
||
Other operating expenses
|
18.6
|
|
|
18.3
|
|
|
1.6
|
|
||
Depreciation and amortization expenses
|
156.7
|
|
|
157.1
|
|
|
(0.3
|
)
|
||
General and administrative expenses
|
1,170.8
|
|
|
1,086.7
|
|
|
7.7
|
|
||
Restructuring and impairments
|
19.7
|
|
|
135.9
|
|
|
(85.5
|
)
|
||
Total operating expenses
|
1,433.4
|
|
|
1,524.2
|
|
|
(6.0
|
)
|
||
Operating loss
|
$
|
(1,367.1
|
)
|
|
$
|
(1,401.8
|
)
|
|
(2.5
|
)%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
%
Change |
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
19,690.3
|
|
|
$
|
17,650.7
|
|
|
11.6
|
%
|
Licensed stores
|
2,652.2
|
|
|
2,355.0
|
|
|
12.6
|
|
||
Other
|
2,377.0
|
|
|
2,381.1
|
|
|
(0.2
|
)
|
||
Total net revenues
|
$
|
24,719.5
|
|
|
$
|
22,386.8
|
|
|
10.4
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Cost of sales
|
$
|
7,930.7
|
|
|
$
|
7,065.8
|
|
|
32.1
|
%
|
|
31.6
|
%
|
Store operating expenses
|
9,472.2
|
|
|
8,486.4
|
|
|
38.3
|
|
|
37.9
|
|
||
Other operating expenses
|
554.9
|
|
|
518.0
|
|
|
2.2
|
|
|
2.3
|
|
||
Depreciation and amortization expenses
|
1,247.0
|
|
|
1,011.4
|
|
|
5.0
|
|
|
4.5
|
|
||
General and administrative expenses
|
1,708.2
|
|
|
1,408.4
|
|
|
6.9
|
|
|
6.3
|
|
||
Restructuring and impairments
|
224.4
|
|
|
153.5
|
|
|
0.9
|
|
|
0.7
|
|
||
Total operating expenses
|
21,137.4
|
|
|
18,643.5
|
|
|
85.5
|
|
|
83.3
|
|
||
Income from equity investees
|
301.2
|
|
|
391.4
|
|
|
1.2
|
|
|
1.7
|
|
||
Operating income
|
$
|
3,883.3
|
|
|
$
|
4,134.7
|
|
|
15.7
|
%
|
|
18.5
|
%
|
Store operating expenses as a % of related revenues
|
|
|
|
|
48.1
|
%
|
|
48.1
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Operating income
|
$
|
3,883.3
|
|
|
$
|
4,134.7
|
|
|
15.7
|
%
|
|
18.5
|
%
|
Gain resulting from acquisition of joint venture
|
1,376.4
|
|
|
—
|
|
|
5.6
|
|
|
—
|
|
||
Net gain resulting from divestiture of certain operations
|
499.2
|
|
|
93.5
|
|
|
2.0
|
|
|
0.4
|
|
||
Interest income and other, net
|
191.4
|
|
|
181.8
|
|
|
0.8
|
|
|
0.8
|
|
||
Interest expense
|
(170.3
|
)
|
|
(92.5
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
||
Earnings before income taxes
|
5,780.0
|
|
|
4,317.5
|
|
|
23.4
|
|
|
19.3
|
|
||
Income tax expense
|
1,262.0
|
|
|
1,432.6
|
|
|
5.1
|
|
|
6.4
|
|
||
Net earnings including noncontrolling interests
|
4,518.0
|
|
|
2,884.9
|
|
|
18.3
|
|
|
12.9
|
|
||
Net earnings attributable to noncontrolling interests
|
(0.3
|
)
|
|
0.2
|
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
4,518.3
|
|
|
$
|
2,884.7
|
|
|
18.3
|
%
|
|
12.9
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
21.8
|
%
|
|
33.2
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
14,921.5
|
|
|
$
|
14,005.8
|
|
|
89.1
|
%
|
|
89.6
|
%
|
Licensed stores
|
1,814.0
|
|
|
1,617.3
|
|
|
10.8
|
|
|
10.4
|
|
||
Other
|
13.1
|
|
|
6.3
|
|
|
0.1
|
|
|
—
|
|
||
Total net revenues
|
16,748.6
|
|
|
15,629.4
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
4,884.1
|
|
|
4,371.0
|
|
|
29.2
|
|
|
28.0
|
|
||
Store operating expenses
|
7,248.6
|
|
|
6,673.1
|
|
|
43.3
|
|
|
42.7
|
|
||
Other operating expenses
|
151.2
|
|
|
131.6
|
|
|
0.9
|
|
|
0.8
|
|
||
Depreciation and amortization expenses
|
641.0
|
|
|
616.1
|
|
|
3.8
|
|
|
3.9
|
|
||
General and administrative expenses
|
305.1
|
|
|
256.3
|
|
|
1.8
|
|
|
1.6
|
|
||
Restructuring and impairments
|
33.4
|
|
|
4.1
|
|
|
0.2
|
|
|
—
|
|
||
Total operating expenses
|
13,263.4
|
|
|
12,052.2
|
|
|
79.2
|
|
|
77.1
|
|
||
Operating income
|
$
|
3,485.2
|
|
|
$
|
3,577.2
|
|
|
20.8
|
%
|
|
22.9
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of International
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
4,702.1
|
|
|
$
|
3,462.5
|
|
|
84.7
|
%
|
|
82.4
|
%
|
Licensed stores
|
837.0
|
|
|
735.0
|
|
|
15.1
|
|
|
17.5
|
|
||
Other
|
12.1
|
|
|
6.8
|
|
|
0.2
|
|
|
0.2
|
|
||
Total net revenues
|
5,551.2
|
|
|
4,204.3
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
1,709.4
|
|
|
1,324.2
|
|
|
30.8
|
|
|
31.5
|
|
||
Store operating expenses
|
2,182.3
|
|
|
1,664.8
|
|
|
39.3
|
|
|
39.6
|
|
||
Other operating expenses
|
98.9
|
|
|
89.2
|
|
|
1.8
|
|
|
2.1
|
|
||
Depreciation and amortization expenses
|
447.6
|
|
|
233.2
|
|
|
8.1
|
|
|
5.5
|
|
||
General and administrative expenses
|
302.5
|
|
|
236.4
|
|
|
5.4
|
|
|
5.6
|
|
||
Restructuring and impairments
|
55.1
|
|
|
17.9
|
|
|
1.0
|
|
|
0.4
|
|
||
Total operating expenses
|
4,795.8
|
|
|
3,565.7
|
|
|
86.4
|
|
|
84.8
|
|
||
Income from equity investees
|
117.4
|
|
|
197.0
|
|
|
2.1
|
|
|
4.7
|
|
||
Operating income
|
$
|
872.8
|
|
|
$
|
835.6
|
|
|
15.7
|
%
|
|
19.9
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues
|
||||||||
Total net revenues
|
$
|
2,297.3
|
|
|
$
|
2,256.6
|
|
|
|
|
|
||
Cost of sales
|
1,252.3
|
|
|
1,209.3
|
|
|
54.5
|
|
|
53.6
|
|
||
Other operating expenses
|
286.5
|
|
|
260.4
|
|
|
12.5
|
|
|
11.5
|
|
||
Depreciation and amortization expenses
|
1.3
|
|
|
3.0
|
|
|
0.1
|
|
|
0.1
|
|
||
General and administrative expenses
|
13.9
|
|
|
11.3
|
|
|
0.6
|
|
|
0.5
|
|
||
Total operating expenses
|
1,554.0
|
|
|
1,484.0
|
|
|
67.6
|
|
|
65.8
|
|
||
Income from equity investees
|
183.8
|
|
|
194.4
|
|
|
8.0
|
|
|
8.6
|
|
||
Operating income
|
$
|
927.1
|
|
|
$
|
967.0
|
|
|
40.4
|
%
|
|
42.9
|
%
|
Fiscal Year Ended
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
66.7
|
|
|
$
|
182.4
|
|
|
(63.4
|
)%
|
Licensed stores
|
1.2
|
|
|
2.7
|
|
|
(55.6
|
)
|
||
Other
|
54.5
|
|
|
111.4
|
|
|
(51.1
|
)
|
||
Total net revenues
|
122.4
|
|
|
296.5
|
|
|
(58.7
|
)
|
||
Cost of sales
|
84.9
|
|
|
161.3
|
|
|
(47.4
|
)
|
||
Store operating expenses
|
41.3
|
|
|
148.5
|
|
|
(72.2
|
)
|
||
Other operating expenses
|
18.3
|
|
|
36.8
|
|
|
(50.3
|
)
|
||
Depreciation and amortization expenses
|
157.1
|
|
|
159.1
|
|
|
(1.3
|
)
|
||
General and administrative expenses
|
1,086.7
|
|
|
904.4
|
|
|
20.2
|
|
||
Restructuring and impairments
|
135.9
|
|
|
131.5
|
|
|
3.3
|
|
||
Total operating expenses
|
1,524.2
|
|
|
1,541.6
|
|
|
(1.1
|
)
|
||
Operating loss
|
$
|
(1,401.8
|
)
|
|
$
|
(1,245.1
|
)
|
|
12.6
|
%
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations (1)
|
Total
|
|
Less than 1
Year
|
|
1 - 3
Years
|
|
3 - 5
Years
|
|
More than
5 Years
|
||||||||||
Operating lease obligations (2)
|
$
|
10,230.9
|
|
|
$
|
1,432.9
|
|
|
$
|
2,589.6
|
|
|
$
|
2,120.7
|
|
|
$
|
4,087.7
|
|
Financing lease obligations
|
67.9
|
|
|
5.2
|
|
|
10.2
|
|
|
9.9
|
|
|
42.6
|
|
|||||
Debt obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments
|
11,238.3
|
|
|
—
|
|
|
1,750.0
|
|
|
2,538.3
|
|
|
6,950.0
|
|
|||||
Interest payments
|
5,109.7
|
|
|
372.6
|
|
|
705.1
|
|
|
602.3
|
|
|
3,429.7
|
|
|||||
Purchase obligations (3)
|
1,135.4
|
|
|
665.3
|
|
|
411.1
|
|
|
59.0
|
|
|
—
|
|
|||||
Other obligations (4)
|
454.6
|
|
|
109.4
|
|
|
63.2
|
|
|
85.3
|
|
|
196.7
|
|
|||||
Total
|
$
|
28,236.8
|
|
|
$
|
2,585.4
|
|
|
$
|
5,529.2
|
|
|
$
|
5,415.5
|
|
|
$
|
14,706.7
|
|
(1)
|
We have excluded long-term gross unrecognized tax benefits for uncertain tax positions, including interest and penalties of $140.1 million from the amounts presented as the timing of these obligations is uncertain.
|
(2)
|
Amounts include direct lease obligations, excluding any taxes, insurance and other related expenses.
|
(3)
|
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on Starbucks and that specify all significant terms. Green coffee purchase commitments comprise 93% of total purchase obligations.
|
(4)
|
Other obligations include other long-term liabilities primarily consisting of the Tax Act transition tax, asset retirement obligations, Valor Siren Ventures I L.P. (VSV) investment and hedging instruments.
|
|
Increase/(Decrease) to Net Earnings
|
|
Increase/(Decrease) to OCI
|
||||||||||||
|
10% Increase in
Underlying Rate
|
|
10% Decrease in
Underlying Rate |
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
||||||||
Commodity hedges
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
5
|
|
|
$
|
(5
|
)
|
|
Increase/(Decrease) to Net Earnings
|
|
Increase/(Decrease) to OCI
|
||||||||||||
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
|
10% Increase in
Underlying Rate |
|
10% Decrease in
Underlying Rate |
||||||||
Foreign currency hedges
|
$
|
35
|
|
|
$
|
(35
|
)
|
|
$
|
109
|
|
|
$
|
(109
|
)
|
|
|
|
|
Change in Fair Value
|
||||||||
|
|
Fair Value
|
|
100 Basis Point Increase in
Underlying Rate
|
|
100 Basis Point Decrease in
Underlying Rate
|
||||||
|
|
|||||||||||
Long-term debt (1)
|
|
$
|
12,033
|
|
|
$
|
846
|
|
|
$
|
(846
|
)
|
(1)
|
Amount disclosed is net of ($26 million) change in the fair value of our designated interest rate swap. Refer to Note 3, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.
|
Item 8.
|
Financial Statements and Supplementary Data
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
Net revenues:
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
21,544.4
|
|
|
$
|
19,690.3
|
|
|
$
|
17,650.7
|
|
Licensed stores
|
2,875.0
|
|
|
2,652.2
|
|
|
2,355.0
|
|
|||
Other
|
2,089.2
|
|
|
2,377.0
|
|
|
2,381.1
|
|
|||
Total net revenues
|
26,508.6
|
|
|
24,719.5
|
|
|
22,386.8
|
|
|||
Cost of sales
|
8,526.9
|
|
|
7,930.7
|
|
|
7,065.8
|
|
|||
Store operating expenses
|
10,493.6
|
|
|
9,472.2
|
|
|
8,486.4
|
|
|||
Other operating expenses
|
371.0
|
|
|
554.9
|
|
|
518.0
|
|
|||
Depreciation and amortization expenses
|
1,377.3
|
|
|
1,247.0
|
|
|
1,011.4
|
|
|||
General and administrative expenses
|
1,824.1
|
|
|
1,708.2
|
|
|
1,408.4
|
|
|||
Restructuring and impairments
|
135.8
|
|
|
224.4
|
|
|
153.5
|
|
|||
Total operating expenses
|
22,728.7
|
|
|
21,137.4
|
|
|
18,643.5
|
|
|||
Income from equity investees
|
298.0
|
|
|
301.2
|
|
|
391.4
|
|
|||
Operating income
|
4,077.9
|
|
|
3,883.3
|
|
|
4,134.7
|
|
|||
Gain resulting from acquisition of joint venture
|
—
|
|
|
1,376.4
|
|
|
—
|
|
|||
Net gain resulting from divestiture of certain operations
|
622.8
|
|
|
499.2
|
|
|
93.5
|
|
|||
Interest income and other, net
|
96.5
|
|
|
191.4
|
|
|
181.8
|
|
|||
Interest expense
|
(331.0
|
)
|
|
(170.3
|
)
|
|
(92.5
|
)
|
|||
Earnings before income taxes
|
4,466.2
|
|
|
5,780.0
|
|
|
4,317.5
|
|
|||
Income tax expense
|
871.6
|
|
|
1,262.0
|
|
|
1,432.6
|
|
|||
Net earnings including noncontrolling interests
|
3,594.6
|
|
|
4,518.0
|
|
|
2,884.9
|
|
|||
Net earnings/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|||
Net earnings attributable to Starbucks
|
$
|
3,599.2
|
|
|
$
|
4,518.3
|
|
|
$
|
2,884.7
|
|
Earnings per share — basic
|
$
|
2.95
|
|
|
$
|
3.27
|
|
|
$
|
1.99
|
|
Earnings per share — diluted
|
$
|
2.92
|
|
|
$
|
3.24
|
|
|
$
|
1.97
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
1,221.2
|
|
|
1,382.7
|
|
|
1,449.5
|
|
|||
Diluted
|
1,233.2
|
|
|
1,394.6
|
|
|
1,461.5
|
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
Net earnings including noncontrolling interests
|
$
|
3,594.6
|
|
|
$
|
4,518.0
|
|
|
$
|
2,884.9
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized holding gains/(losses) on available-for-sale securities
|
10.5
|
|
|
(7.0
|
)
|
|
(9.5
|
)
|
|||
Tax (expense)/benefit
|
(2.3
|
)
|
|
1.9
|
|
|
2.9
|
|
|||
Unrealized gains/(losses) on cash flow hedging instruments
|
(14.1
|
)
|
|
24.4
|
|
|
53.2
|
|
|||
Tax (expense)/benefit
|
3.4
|
|
|
(6.5
|
)
|
|
(12.6
|
)
|
|||
Unrealized gains/(losses) on net investment hedging instruments
|
(39.8
|
)
|
|
7.8
|
|
|
20.1
|
|
|||
Tax (expense)/benefit
|
10.1
|
|
|
(2.2
|
)
|
|
(7.4
|
)
|
|||
Translation adjustment and other
|
(146.2
|
)
|
|
(220.0
|
)
|
|
(38.3
|
)
|
|||
Tax (expense)/benefit
|
2.5
|
|
|
3.4
|
|
|
(2.4
|
)
|
|||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment
|
1.3
|
|
|
24.7
|
|
|
(67.2
|
)
|
|||
Tax expense/(benefit)
|
1.6
|
|
|
(1.2
|
)
|
|
14.0
|
|
|||
Other comprehensive income/(loss)
|
(173.0
|
)
|
|
(174.7
|
)
|
|
(47.2
|
)
|
|||
Comprehensive income including noncontrolling interests
|
3,421.6
|
|
|
4,343.3
|
|
|
2,837.7
|
|
|||
Comprehensive income/(loss) attributable to noncontrolling interests
|
(4.6
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|||
Comprehensive income attributable to Starbucks
|
$
|
3,426.2
|
|
|
$
|
4,343.6
|
|
|
$
|
2,837.5
|
|
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,686.6
|
|
|
$
|
8,756.3
|
|
Short-term investments
|
70.5
|
|
|
181.5
|
|
||
Accounts receivable, net
|
879.2
|
|
|
693.1
|
|
||
Inventories
|
1,529.4
|
|
|
1,400.5
|
|
||
Prepaid expenses and other current assets
|
488.2
|
|
|
1,462.8
|
|
||
Total current assets
|
5,653.9
|
|
|
12,494.2
|
|
||
Long-term investments
|
220.0
|
|
|
267.7
|
|
||
Equity investments
|
396.0
|
|
|
334.7
|
|
||
Property, plant and equipment, net
|
6,431.7
|
|
|
5,929.1
|
|
||
Deferred income taxes, net
|
1,765.8
|
|
|
134.7
|
|
||
Other long-term assets
|
479.6
|
|
|
412.2
|
|
||
Other intangible assets
|
781.8
|
|
|
1,042.2
|
|
||
Goodwill
|
3,490.8
|
|
|
3,541.6
|
|
||
TOTAL ASSETS
|
$
|
19,219.6
|
|
|
$
|
24,156.4
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,189.7
|
|
|
$
|
1,179.3
|
|
Accrued liabilities
|
1,753.7
|
|
|
1,752.5
|
|
||
Accrued payroll and benefits
|
664.6
|
|
|
656.8
|
|
||
Income taxes payable
|
1,291.7
|
|
|
102.8
|
|
||
Stored value card liability and current portion of deferred revenue
|
1,269.0
|
|
|
1,642.9
|
|
||
Current portion of long-term debt
|
—
|
|
|
349.9
|
|
||
Total current liabilities
|
6,168.7
|
|
|
5,684.2
|
|
||
Long-term debt
|
11,167.0
|
|
|
9,090.2
|
|
||
Deferred revenue
|
6,744.4
|
|
|
6,775.7
|
|
||
Other long-term liabilities
|
1,370.5
|
|
|
1,430.5
|
|
||
Total liabilities
|
25,450.6
|
|
|
22,980.6
|
|
||
Shareholders’ equity/(deficit):
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,184.6 and 1,309.1 shares, respectively
|
1.2
|
|
|
1.3
|
|
||
Additional paid-in capital
|
41.1
|
|
|
41.1
|
|
||
Retained earnings/(deficit)
|
(5,771.2
|
)
|
|
1,457.4
|
|
||
Accumulated other comprehensive loss
|
(503.3
|
)
|
|
(330.3
|
)
|
||
Total shareholders’ equity/(deficit)
|
(6,232.2
|
)
|
|
1,169.5
|
|
||
Noncontrolling interests
|
1.2
|
|
|
6.3
|
|
||
Total equity/(deficit)
|
(6,231.0
|
)
|
|
1,175.8
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
|
$
|
19,219.6
|
|
|
$
|
24,156.4
|
|
Fiscal Year Ended
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net earnings including noncontrolling interests
|
$
|
3,594.6
|
|
|
$
|
4,518.0
|
|
|
$
|
2,884.9
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
1,449.3
|
|
|
1,305.9
|
|
|
1,067.1
|
|
|||
Deferred income taxes, net
|
(1,495.4
|
)
|
|
714.9
|
|
|
95.1
|
|
|||
Income earned from equity method investees
|
(250.6
|
)
|
|
(242.8
|
)
|
|
(310.2
|
)
|
|||
Distributions received from equity method investees
|
216.8
|
|
|
226.8
|
|
|
186.6
|
|
|||
Gain resulting from acquisition of joint venture
|
—
|
|
|
(1,376.4
|
)
|
|
—
|
|
|||
Net gain resulting from divestiture of certain retail operations
|
(622.8
|
)
|
|
(499.2
|
)
|
|
(93.5
|
)
|
|||
Stock-based compensation
|
308.0
|
|
|
250.3
|
|
|
176.0
|
|
|||
Goodwill impairments
|
10.5
|
|
|
37.6
|
|
|
87.2
|
|
|||
Other
|
187.9
|
|
|
89.0
|
|
|
68.9
|
|
|||
Cash provided by changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(197.7
|
)
|
|
131.0
|
|
|
(96.8
|
)
|
|||
Inventories
|
(173.0
|
)
|
|
(41.2
|
)
|
|
14.0
|
|
|||
Prepaid expenses and other current assets
|
922.0
|
|
|
(839.5
|
)
|
|
(20.0
|
)
|
|||
Income taxes payable
|
1,237.1
|
|
|
146.0
|
|
|
(91.9
|
)
|
|||
Accounts payable
|
31.9
|
|
|
391.6
|
|
|
46.4
|
|
|||
Deferred revenue
|
(30.5
|
)
|
|
7,109.4
|
|
|
130.8
|
|
|||
Other operating assets and liabilities
|
(141.1
|
)
|
|
16.4
|
|
|
107.2
|
|
|||
Net cash provided by operating activities
|
5,047.0
|
|
|
11,937.8
|
|
|
4,251.8
|
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchases of investments
|
(190.4
|
)
|
|
(191.9
|
)
|
|
(674.4
|
)
|
|||
Sales of investments
|
298.3
|
|
|
459.0
|
|
|
1,054.5
|
|
|||
Maturities and calls of investments
|
59.8
|
|
|
45.3
|
|
|
149.6
|
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
(1,311.3
|
)
|
|
—
|
|
|||
Additions to property, plant and equipment
|
(1,806.6
|
)
|
|
(1,976.4
|
)
|
|
(1,519.4
|
)
|
|||
Net proceeds from the divestiture of certain operations
|
684.3
|
|
|
608.2
|
|
|
85.4
|
|
|||
Other
|
(56.2
|
)
|
|
5.6
|
|
|
54.3
|
|
|||
Net cash used by investing activities
|
(1,010.8
|
)
|
|
(2,361.5
|
)
|
|
(850.0
|
)
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
1,996.0
|
|
|
5,584.1
|
|
|
750.2
|
|
|||
Repayments of long-term debt
|
(350.0
|
)
|
|
—
|
|
|
(400.0
|
)
|
|||
Proceeds from issuance of common stock
|
409.8
|
|
|
153.9
|
|
|
150.8
|
|
|||
Cash dividends paid
|
(1,761.3
|
)
|
|
(1,743.4
|
)
|
|
(1,450.4
|
)
|
|||
Repurchase of common stock
|
(10,222.3
|
)
|
|
(7,133.5
|
)
|
|
(2,042.5
|
)
|
|||
Minimum tax withholdings on share-based awards
|
(111.6
|
)
|
|
(62.7
|
)
|
|
(82.8
|
)
|
|||
Other
|
(17.5
|
)
|
|
(41.2
|
)
|
|
(4.4
|
)
|
|||
Net cash used by financing activities
|
(10,056.9
|
)
|
|
(3,242.8
|
)
|
|
(3,079.1
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(49.0
|
)
|
|
(39.5
|
)
|
|
10.8
|
|
|||
Net increase/(decrease) in cash and cash equivalents
|
(6,069.7
|
)
|
|
6,294.0
|
|
|
333.5
|
|
|||
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
||||||
Beginning of period
|
8,756.3
|
|
|
2,462.3
|
|
|
2,128.8
|
|
|||
End of period
|
$
|
2,686.6
|
|
|
$
|
8,756.3
|
|
|
$
|
2,462.3
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest, net of capitalized interest
|
$
|
299.5
|
|
|
$
|
137.1
|
|
|
$
|
96.6
|
|
Income taxes, net of refunds
|
$
|
470.1
|
|
|
$
|
1,176.9
|
|
|
$
|
1,389.1
|
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained
Earnings/(Deficit) |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Shareholders’
Equity/(Deficit) |
|
Noncontrolling
Interests |
|
Total
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
Balance, October 2, 2016
|
1,460.5
|
|
|
$
|
1.5
|
|
|
$
|
41.1
|
|
|
$
|
5,949.8
|
|
|
$
|
(108.4
|
)
|
|
$
|
5,884.0
|
|
|
$
|
6.7
|
|
|
$
|
5,890.7
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
2,884.7
|
|
|
—
|
|
|
2,884.7
|
|
|
0.2
|
|
|
2,884.9
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47.2
|
)
|
|
(47.2
|
)
|
|
—
|
|
|
(47.2
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
177.9
|
|
|
—
|
|
|
—
|
|
|
177.9
|
|
|
—
|
|
|
177.9
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
8.1
|
|
|
—
|
|
|
117.0
|
|
|
—
|
|
|
—
|
|
|
117.0
|
|
|
—
|
|
|
117.0
|
|
|||||||
Sale of common stock, including tax benefit of $0.2
|
0.5
|
|
|
—
|
|
|
28.7
|
|
|
—
|
|
|
—
|
|
|
28.7
|
|
|
—
|
|
|
28.7
|
|
|||||||
Repurchase of common stock
|
(37.5
|
)
|
|
(0.1
|
)
|
|
(323.6
|
)
|
|
(1,755.4
|
)
|
|
—
|
|
|
(2,079.1
|
)
|
|
—
|
|
|
(2,079.1
|
)
|
|||||||
Cash dividends declared, $1.05 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,515.9
|
)
|
|
—
|
|
|
(1,515.9
|
)
|
|
—
|
|
|
(1,515.9
|
)
|
|||||||
Balance, October 1, 2017
|
1,431.6
|
|
|
$
|
1.4
|
|
|
$
|
41.1
|
|
|
$
|
5,563.2
|
|
|
$
|
(155.6
|
)
|
|
$
|
5,450.1
|
|
|
$
|
6.9
|
|
|
$
|
5,457.0
|
|
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,518.3
|
|
|
—
|
|
|
4,518.3
|
|
|
(0.3
|
)
|
|
4,518.0
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(174.7
|
)
|
|
(174.7
|
)
|
|
—
|
|
|
(174.7
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
253.8
|
|
|
—
|
|
|
—
|
|
|
253.8
|
|
|
—
|
|
|
253.8
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
8.4
|
|
|
—
|
|
|
59.4
|
|
|
—
|
|
|
—
|
|
|
59.4
|
|
|
—
|
|
|
59.4
|
|
|||||||
Sale of common stock
|
0.6
|
|
|
—
|
|
|
31.8
|
|
|
—
|
|
|
—
|
|
|
31.8
|
|
|
—
|
|
|
31.8
|
|
|||||||
Repurchase of common stock
|
(131.5
|
)
|
|
(0.1
|
)
|
|
(345.0
|
)
|
|
(6,863.6
|
)
|
|
—
|
|
|
(7,208.7
|
)
|
|
—
|
|
|
(7,208.7
|
)
|
|||||||
Cash dividends declared, $1.32 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,760.5
|
)
|
|
—
|
|
|
(1,760.5
|
)
|
|
—
|
|
|
(1,760.5
|
)
|
|||||||
Net distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||||
Balance, September 30, 2018
|
1,309.1
|
|
|
$
|
1.3
|
|
|
$
|
41.1
|
|
|
$
|
1,457.4
|
|
|
$
|
(330.3
|
)
|
|
$
|
1,169.5
|
|
|
$
|
6.3
|
|
|
$
|
1,175.8
|
|
Cumulative effect of adoption of new accounting guidance
|
—
|
|
|
—
|
|
|
—
|
|
|
495.6
|
|
|
—
|
|
|
495.6
|
|
|
—
|
|
|
495.6
|
|
|||||||
Net earnings/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,599.2
|
|
|
—
|
|
|
3,599.2
|
|
|
(4.6
|
)
|
|
3,594.6
|
|
|||||||
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173.0
|
)
|
|
(173.0
|
)
|
|
—
|
|
|
(173.0
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
311.3
|
|
|
—
|
|
|
—
|
|
|
311.3
|
|
|
—
|
|
|
311.3
|
|
|||||||
Exercise of stock options/vesting of RSUs
|
14.7
|
|
|
—
|
|
|
264.9
|
|
|
—
|
|
|
—
|
|
|
264.9
|
|
|
—
|
|
|
264.9
|
|
|||||||
Sale of common stock
|
0.4
|
|
|
—
|
|
|
33.4
|
|
|
—
|
|
|
—
|
|
|
33.4
|
|
|
—
|
|
|
33.4
|
|
|||||||
Repurchase of common stock
|
(139.6
|
)
|
|
(0.1
|
)
|
|
(609.6
|
)
|
|
(9,521.8
|
)
|
|
—
|
|
|
(10,131.5
|
)
|
|
—
|
|
|
(10,131.5
|
)
|
|||||||
Cash dividends declared, $1.49 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,801.6
|
)
|
|
—
|
|
|
(1,801.6
|
)
|
|
—
|
|
|
(1,801.6
|
)
|
|||||||
Net distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||||||
Balance, September 29, 2019
|
1,184.6
|
|
|
$
|
1.2
|
|
|
$
|
41.1
|
|
|
$
|
(5,771.2
|
)
|
|
$
|
(503.3
|
)
|
|
$
|
(6,232.2
|
)
|
|
$
|
1.2
|
|
|
$
|
(6,231.0
|
)
|
Note 1
|
||
Note 2
|
||
Note 3
|
||
Note 4
|
||
Note 5
|
||
Note 6
|
||
Note 7
|
||
Note 8
|
||
Note 9
|
||
Note 10
|
||
Note 11
|
||
Note 12
|
||
Note 13
|
||
Note 14
|
||
Note 15
|
||
Note 16
|
||
Note 17
|
|
Total
|
||
Stored value cards and loyalty program at September 30, 2018
|
$
|
1,328.6
|
|
Revenue recognition adoption impact
|
(358.0
|
)
|
|
Stored value cards and loyalty program at October 1, 2018
|
970.6
|
|
|
Revenue deferred - card activations, card reloads and Stars earned
|
10,983.6
|
|
|
Revenue recognized - card and Stars redemptions and breakage
|
(10,819.7
|
)
|
|
Other (1)
|
(20.8
|
)
|
|
Stored value cards and loyalty program at September 29, 2019 (2)
|
$
|
1,113.7
|
|
(1)
|
“Other” primarily consists of changes in the stored value cards and loyalty program balance resulting from the sale of certain retail businesses and foreign currency translation.
|
(2)
|
Approximately $1.0 billion of this amount is current.
|
(in millions)
|
As reported
Sep 30, 2018
|
|
Revenue Recognition Adoption Impact
|
|
Adjusted
Oct 1, 2018
|
||||||
Deferred income taxes, net
|
$
|
134.7
|
|
|
$
|
(11.0
|
)
|
|
$
|
123.7
|
|
Current liabilities:
|
|
|
|
|
|
||||||
Stored value card liability and current portion of deferred revenue
|
1,642.9
|
|
|
(422.0
|
)
|
|
1,220.9
|
|
|||
Deferred revenue
|
6,775.7
|
|
|
64.0
|
|
|
6,839.7
|
|
|||
Other long-term liabilities
|
1,430.5
|
|
|
79.0
|
|
|
1,509.5
|
|
|||
Shareholders' equity:
|
|
|
|
|
|
||||||
Retained earnings
|
1,457.4
|
|
|
268.0
|
|
|
1,725.4
|
|
Consideration:
|
|
|
||
Cash paid for UPG 50% equity interest
|
|
$
|
1,440.8
|
|
Fair value of our pre-existing 50% equity interest
|
|
1,440.8
|
|
|
Settlement of pre-existing liabilities
|
|
90.5
|
|
|
Total consideration
|
|
$
|
2,972.1
|
|
|
|
|
||
Fair value of assets acquired and liabilities assumed:
|
|
|
||
Cash and cash equivalents
|
|
$
|
129.5
|
|
Accounts receivable
|
|
14.3
|
|
|
Inventories
|
|
16.1
|
|
|
Prepaid expenses and other current assets
|
|
20.6
|
|
|
Property, plant and equipment
|
|
254.1
|
|
|
Other long-term assets
|
|
44.6
|
|
|
Other intangible assets
|
|
818.0
|
|
|
Goodwill
|
|
2,164.1
|
|
|
Total assets acquired
|
|
$
|
3,461.3
|
|
Accounts payable
|
|
34.7
|
|
|
Accrued liabilities
|
|
187.7
|
|
|
Stored value card liability
|
|
21.7
|
|
|
Other long-term liabilities
|
|
245.1
|
|
|
Total liabilities assumed
|
|
489.2
|
|
|
Total consideration
|
|
$
|
2,972.1
|
|
|
Year Ended
|
||||||
|
Sep 30, 2018
|
|
Oct 1, 2017 (1)
|
||||
Revenue
|
$
|
24,990.4
|
|
|
$
|
23,315.0
|
|
Net earnings attributable to Starbucks
|
3,196.8
|
|
|
4,209.0
|
|
(1)
|
The pro forma net earnings attributable to Starbucks for fiscal 2017 includes acquisition-related gain of $1.4 billion and transaction and integration costs of $39.3 million for the year ended October 1, 2017.
|
|
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)
|
||||||||||||
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
|
||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
$
|
0.5
|
|
|
$
|
24.7
|
|
|
$
|
17.6
|
|
|
$
|
2.4
|
|
|
157
|
Cross-currency swaps
|
(1.4
|
)
|
|
(12.6
|
)
|
|
(6.0
|
)
|
|
—
|
|
|
62
|
||||
Foreign currency - other
|
12.9
|
|
|
5.8
|
|
|
(9.1
|
)
|
|
7.8
|
|
|
36
|
||||
Coffee
|
(1.0
|
)
|
|
(0.2
|
)
|
|
(6.6
|
)
|
|
(0.2
|
)
|
|
27
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
16.0
|
|
|
16.0
|
|
|
16.2
|
|
|
—
|
|
|
0
|
||||
Foreign currency debt
|
(26.1
|
)
|
|
3.6
|
|
|
(2.2
|
)
|
|
—
|
|
|
54
|
|
|
Year Ended
|
|
||||||||||||||||||||||
|
|
Gains/(Losses)
Recognized in
OCI Before Reclassifications |
|
Gains/(Losses) Reclassified from
AOCI to Earnings
|
Location of gain/(loss)
|
||||||||||||||||||||
|
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|
Sep 29,
2019 |
|
Sep 30,
2018 |
|
Oct 1,
2017 |
|||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rates
|
|
$
|
(27.8
|
)
|
|
$
|
14.1
|
|
|
$
|
—
|
|
|
$
|
4.7
|
|
|
$
|
4.9
|
|
|
$
|
4.8
|
|
Interest expense
|
Cross-currency swaps
|
|
(5.9
|
)
|
|
(6.1
|
)
|
|
59.5
|
|
|
0.1
|
|
|
0.3
|
|
|
(0.9
|
)
|
Interest expense
|
||||||
|
|
|
|
(19.8
|
)
|
|
1.9
|
|
|
58.1
|
|
Interest income and other, net
|
|||||||||||||
Foreign currency - other
|
|
20.8
|
|
|
16.7
|
|
|
1.8
|
|
|
7.0
|
|
|
(0.3
|
)
|
|
3.0
|
|
Licensed stores revenues
|
||||||
|
|
|
|
4.4
|
|
|
(3.3
|
)
|
|
8.4
|
|
Cost of sales
|
|||||||||||||
Coffee
|
|
(1.2
|
)
|
|
(0.3
|
)
|
|
(8.1
|
)
|
|
(0.3
|
)
|
|
(7.4
|
)
|
|
(2.7
|
)
|
Cost of sales
|
||||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency
|
|
—
|
|
|
(0.1
|
)
|
|
23.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Foreign currency debt
|
|
(39.8
|
)
|
|
7.9
|
|
|
(3.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||||||
|
Location of gain/(loss) recognized in earnings
|
|
Year Ended
|
||||||||||
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|||||||
Non-Designated Derivatives:
|
|
|
|
|
|
|
|
||||||
Foreign currency - other
|
Interest income and other, net
|
|
$
|
(8.1
|
)
|
|
$
|
4.6
|
|
|
$
|
4.6
|
|
Dairy
|
Interest income and other, net
|
|
(1.9
|
)
|
|
(2.4
|
)
|
|
—
|
|
|||
Diesel fuel and other commodities
|
Interest income and other, net
|
|
(5.9
|
)
|
|
3.7
|
|
|
1.3
|
|
|||
Fair Value Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
Interest expense
|
|
54.7
|
|
|
(33.7
|
)
|
|
(5.2
|
)
|
|||
Long-term debt (hedged item)
|
Interest expense
|
|
(50.7
|
)
|
|
33.7
|
|
|
5.2
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Interest rate swaps
|
$
|
1,500
|
|
|
$
|
750
|
|
Cross-currency swaps
|
341
|
|
|
434
|
|
||
Foreign currency - other
|
1,125
|
|
|
914
|
|
||
Coffee
|
52
|
|
|
—
|
|
||
Dairy
|
1
|
|
|
16
|
|
||
Diesel fuel and other commodities
|
17
|
|
|
21
|
|
|
|
|
Derivative Assets
|
||||||
|
Balance Sheet Location
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Designated Derivative Instruments:
|
|
|
|
|
|
||||
Interest rates
|
Other long-term assets
|
|
$
|
0.1
|
|
|
$
|
—
|
|
Cross-currency swaps
|
Other long-term assets
|
|
0.2
|
|
|
5.8
|
|
||
Foreign currency - other
|
Prepaid expenses and other current assets
|
|
11.4
|
|
|
9.0
|
|
||
Other long-term assets
|
|
7.8
|
|
|
4.6
|
|
|||
Interest rate swap
|
Other long-term assets
|
|
18.2
|
|
|
—
|
|
||
Non-designated Derivative Instruments:
|
|
|
|
|
|
||||
Foreign currency
|
Prepaid expenses and other current assets
|
|
1.0
|
|
|
13.7
|
|
||
Dairy
|
Prepaid expenses and other current assets
|
|
—
|
|
|
0.2
|
|
||
Diesel fuel and other commodities
|
Prepaid expenses and other current assets
|
|
0.2
|
|
|
1.6
|
|
||
|
|
|
|
|
|
||||
|
|
|
Derivative Liabilities
|
||||||
|
Balance Sheet Location
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Designated Derivative Instruments:
|
|
|
|
|
|
||||
Interest rates
|
Other long-term liabilities
|
|
$
|
2.6
|
|
|
$
|
—
|
|
Cross-currency swaps
|
Other long-term liabilities
|
|
9.7
|
|
|
9.3
|
|
||
Foreign currency - other
|
Accrued liabilities
|
|
0.6
|
|
|
3.6
|
|
||
Other long-term liabilities
|
|
0.1
|
|
|
1.7
|
|
|||
Coffee
|
Accrued liabilities
|
|
1.0
|
|
|
—
|
|
||
Other long-term liabilities
|
|
0.1
|
|
|
—
|
|
|||
Interest rate swap
|
Other long-term liabilities
|
|
—
|
|
|
32.5
|
|
||
Non-designated Derivative Instruments:
|
|
|
|
|
|
||||
Foreign currency
|
Accrued liabilities
|
|
3.0
|
|
|
2.5
|
|
||
Dairy
|
Accrued liabilities
|
|
—
|
|
|
0.1
|
|
||
Diesel fuel and other commodities
|
Accrued liabilities
|
|
1.1
|
|
|
0.3
|
|
|
Carrying amount of hedged item
|
|
Cumulative amount of fair value hedging adjustment included in the carrying amount
|
||||||||||||
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||||||
Location on the balance sheet
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
761.8
|
|
|
$
|
711.0
|
|
|
$
|
11.8
|
|
|
$
|
(39.0
|
)
|
|
|
|
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 securities
|
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
September 30, 2018 |
|
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
|
$
|
8,756.3
|
|
|
$
|
8,756.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
8.4
|
|
|
—
|
|
|
8.4
|
|
|
—
|
|
||||
Corporate debt securities
|
91.8
|
|
|
—
|
|
|
91.8
|
|
|
—
|
|
||||
Foreign government obligations
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
||||
Total available-for-sale debt securities
|
106.2
|
|
|
—
|
|
|
106.2
|
|
|
—
|
|
||||
Marketable equity securities
|
75.3
|
|
|
75.3
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
181.5
|
|
|
75.3
|
|
|
106.2
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
24.5
|
|
|
1.2
|
|
|
23.3
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
5.9
|
|
|
—
|
|
|
5.9
|
|
|
—
|
|
||||
Corporate debt securities
|
114.5
|
|
|
—
|
|
|
114.5
|
|
|
—
|
|
||||
Auction rate securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Foreign government obligations
|
3.6
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
||||
U.S. government treasury securities
|
108.1
|
|
|
108.1
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
4.8
|
|
|
—
|
|
|
4.8
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
24.9
|
|
|
—
|
|
|
24.9
|
|
|
—
|
|
||||
Total long-term investments
|
267.7
|
|
|
108.1
|
|
|
153.7
|
|
|
5.9
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
10.4
|
|
|
—
|
|
|
10.4
|
|
|
—
|
|
||||
Total assets
|
$
|
9,240.4
|
|
|
$
|
8,940.9
|
|
|
$
|
293.6
|
|
|
$
|
5.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
6.5
|
|
|
$
|
0.4
|
|
|
$
|
6.1
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
43.5
|
|
|
—
|
|
|
43.5
|
|
|
—
|
|
||||
Total
|
$
|
50.0
|
|
|
$
|
0.4
|
|
|
$
|
49.6
|
|
|
$
|
—
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Coffee:
|
|
|
|
||||
Unroasted
|
$
|
656.5
|
|
|
$
|
588.6
|
|
Roasted
|
276.5
|
|
|
281.2
|
|
||
Other merchandise held for sale
|
288.0
|
|
|
273.1
|
|
||
Packaging and other supplies
|
308.4
|
|
|
257.6
|
|
||
Total
|
$
|
1,529.4
|
|
|
$
|
1,400.5
|
|
|
Sep 29,
2019 |
|
Sep 30,
2018 |
||||
Equity method investments
|
$
|
336.1
|
|
|
$
|
296.0
|
|
Other investments
|
59.9
|
|
|
38.7
|
|
||
Total
|
$
|
396.0
|
|
|
$
|
334.7
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Income tax receivable
|
$
|
141.1
|
|
|
$
|
955.4
|
|
Other prepaid expenses and current assets
|
347.1
|
|
|
507.4
|
|
||
Total prepaid expenses and current assets
|
$
|
488.2
|
|
|
$
|
1,462.8
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Land
|
$
|
46.8
|
|
|
$
|
46.8
|
|
Buildings
|
691.5
|
|
|
557.3
|
|
||
Leasehold improvements
|
7,948.6
|
|
|
7,372.8
|
|
||
Store equipment
|
2,659.5
|
|
|
2,400.2
|
|
||
Roasting equipment
|
769.6
|
|
|
658.8
|
|
||
Furniture, fixtures and other
|
1,799.0
|
|
|
1,659.3
|
|
||
Work in progress
|
358.5
|
|
|
501.9
|
|
||
Property, plant and equipment, gross
|
14,273.5
|
|
|
13,197.1
|
|
||
Accumulated depreciation
|
(7,841.8
|
)
|
|
(7,268.0
|
)
|
||
Property, plant and equipment, net
|
$
|
6,431.7
|
|
|
$
|
5,929.1
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Accrued occupancy costs
|
$
|
176.9
|
|
|
$
|
164.2
|
|
Accrued dividends payable
|
485.7
|
|
|
445.4
|
|
||
Accrued capital and other operating expenditures
|
703.9
|
|
|
745.4
|
|
||
Self insurance reserves
|
210.5
|
|
|
213.7
|
|
||
Accrued business taxes
|
176.7
|
|
|
183.8
|
|
||
Total accrued liabilities
|
$
|
1,753.7
|
|
|
$
|
1,752.5
|
|
(in millions)
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Trade names, trademarks and patents
|
$
|
203.4
|
|
|
$
|
215.9
|
|
Other indefinite-lived intangible assets
|
—
|
|
|
15.1
|
|
||
Total indefinite-lived intangible assets
|
$
|
203.4
|
|
|
$
|
231.0
|
|
|
Americas
|
|
International
|
|
Channel
Development |
|
Corporate and Other
|
|
Total
|
||||||||||
Goodwill balance at October 2, 2017
|
$
|
211.6
|
|
|
$
|
892.7
|
|
|
$
|
30.2
|
|
|
$
|
404.7
|
|
|
$
|
1,539.2
|
|
Acquisition/(divestiture)
|
—
|
|
|
2,164.0
|
|
|
(1.5
|
)
|
|
—
|
|
|
2,162.5
|
|
|||||
Impairment
|
—
|
|
|
(37.6
|
)
|
|
—
|
|
|
—
|
|
|
(37.6
|
)
|
|||||
Other
|
285.8
|
|
|
(15.9
|
)
|
|
6.0
|
|
|
(398.4
|
)
|
|
(122.5
|
)
|
|||||
Goodwill balance at October 1, 2018
|
$
|
497.4
|
|
|
$
|
3,003.2
|
|
|
$
|
34.7
|
|
|
$
|
6.3
|
|
|
$
|
3,541.6
|
|
Acquisition/(divestiture)
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
|||||
Impairment
|
—
|
|
|
(5.3
|
)
|
|
—
|
|
|
(5.2
|
)
|
|
(10.5
|
)
|
|||||
Other
|
(0.7
|
)
|
|
(34.0
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(34.8
|
)
|
|||||
Goodwill balance at September 30, 2019
|
$
|
496.7
|
|
|
$
|
2,958.4
|
|
|
$
|
34.7
|
|
|
$
|
1.0
|
|
|
$
|
3,490.8
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||||||||||||||||||
(in millions)
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Acquired and reacquired rights
|
$
|
1,075.0
|
|
|
$
|
(537.2
|
)
|
|
$
|
537.8
|
|
|
$
|
1,081.7
|
|
|
$
|
(320.1
|
)
|
|
$
|
761.6
|
|
Acquired trade secrets and processes
|
27.6
|
|
|
(19.2
|
)
|
|
8.4
|
|
|
27.6
|
|
|
(16.5
|
)
|
|
11.1
|
|
||||||
Trade names, trademarks and patents
|
40.6
|
|
|
(22.9
|
)
|
|
17.7
|
|
|
33.0
|
|
|
(19.5
|
)
|
|
13.5
|
|
||||||
Licensing agreements
|
16.2
|
|
|
(12.2
|
)
|
|
4.0
|
|
|
14.3
|
|
|
(5.1
|
)
|
|
9.2
|
|
||||||
Other finite-lived intangible assets
|
22.0
|
|
|
(11.5
|
)
|
|
10.5
|
|
|
25.6
|
|
|
(9.8
|
)
|
|
15.8
|
|
||||||
Total finite-lived intangible assets
|
$
|
1,181.4
|
|
|
$
|
(603.0
|
)
|
|
$
|
578.4
|
|
|
$
|
1,182.2
|
|
|
$
|
(371.0
|
)
|
|
$
|
811.2
|
|
Fiscal Year Ending
|
|
||
2020
|
$
|
214.6
|
|
2021
|
194.0
|
|
|
2022
|
160.4
|
|
|
2023
|
2.8
|
|
|
2024
|
2.1
|
|
|
Thereafter
|
4.5
|
|
|
Total estimated future amortization expense
|
$
|
578.4
|
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Stated Interest Rate
|
Effective Interest Rate (1)
|
||||||||||||
Issuance
|
Face Value
|
Estimated Fair Value
|
|
Face Value
|
Estimated Fair Value
|
|
||||||||||||
December 2018 notes
|
$
|
—
|
|
$
|
—
|
|
|
$
|
350.0
|
|
$
|
350
|
|
|
2.000
|
%
|
2.012
|
%
|
November 2020 notes
|
500.0
|
|
501
|
|
|
500.0
|
|
490
|
|
|
2.200
|
%
|
2.228
|
%
|
||||
February 2021 notes
|
500.0
|
|
500
|
|
|
500.0
|
|
489
|
|
|
2.100
|
%
|
2.293
|
%
|
||||
February 2021 notes
|
250.0
|
|
250
|
|
|
250.0
|
|
244
|
|
|
2.100
|
%
|
1.600
|
%
|
||||
June 2022 notes
|
500.0
|
|
509
|
|
|
500.0
|
|
486
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
February 2023 notes
|
1,000.0
|
|
1,033
|
|
|
1,000.0
|
|
986
|
|
|
3.100
|
%
|
3.107
|
%
|
||||
October 2023 notes (2)
|
750.0
|
|
798
|
|
|
750.0
|
|
759
|
|
|
3.850
|
%
|
2.859
|
%
|
||||
March 2024 notes (3)
|
788.3
|
|
795
|
|
|
748.4
|
|
743
|
|
|
0.372
|
%
|
0.462
|
%
|
||||
August 2025 notes
|
1,250.0
|
|
1,351
|
|
|
1,250.0
|
|
1,249
|
|
|
3.800
|
%
|
3.721
|
%
|
||||
June 2026 notes
|
500.0
|
|
502
|
|
|
500.0
|
|
451
|
|
|
2.450
|
%
|
2.511
|
%
|
||||
February 2028 notes
|
600.0
|
|
644
|
|
|
600.0
|
|
576
|
|
|
3.500
|
%
|
3.529
|
%
|
||||
November 2028 notes
|
750.0
|
|
837
|
|
|
750.0
|
|
754
|
|
|
4.000
|
%
|
3.958
|
%
|
||||
May 2029 notes (4)
|
1,000.0
|
|
1,080
|
|
|
—
|
|
—
|
|
|
3.550
|
%
|
3.871
|
%
|
||||
June 2045 notes
|
350.0
|
|
390
|
|
|
350.0
|
|
330
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
December 2047 notes
|
500.0
|
|
518
|
|
|
500.0
|
|
438
|
|
|
3.750
|
%
|
3.765
|
%
|
||||
November 2048 notes
|
1,000.0
|
|
1,160
|
|
|
1,000.0
|
|
977
|
|
|
4.500
|
%
|
4.504
|
%
|
||||
May 2049 notes (4)
|
1,000.0
|
|
1,165
|
|
|
—
|
|
—
|
|
|
4.450
|
%
|
4.433
|
%
|
||||
Total
|
11,238.3
|
|
12,033
|
|
|
9,548.4
|
|
9,322
|
|
|
|
|
||||||
Aggregate debt issuance costs and unamortized premium/(discount), net
|
(83.1
|
)
|
|
|
(69.3
|
)
|
|
|
|
|
||||||||
Hedge accounting fair value adjustment (2)
|
11.8
|
|
|
|
(39.0
|
)
|
|
|
|
|
||||||||
Total
|
$
|
11,167.0
|
|
|
|
$
|
9,440.1
|
|
|
|
|
|
(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 May 2019.
|
Fiscal Year
|
Total
|
||
2020
|
$
|
—
|
|
2021
|
1,250.0
|
|
|
2022
|
500.0
|
|
|
2023
|
1,000.0
|
|
|
2024
|
1,538.3
|
|
|
Thereafter
|
6,950.0
|
|
|
Total
|
$
|
11,238.3
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Minimum rent
|
$
|
1,441.7
|
|
|
$
|
1,424.5
|
|
|
$
|
1,185.7
|
|
Contingent rent
|
224.3
|
|
|
200.7
|
|
|
143.5
|
|
|||
Total
|
$
|
1,666.0
|
|
|
$
|
1,625.2
|
|
|
$
|
1,329.2
|
|
Fiscal Year Ending
|
Operating Leases
|
|
Lease Financing Arrangements
|
||||
2020
|
$
|
1,432.9
|
|
|
$
|
5.2
|
|
2021
|
1,342.2
|
|
|
5.2
|
|
||
2022
|
1,247.4
|
|
|
5.0
|
|
||
2023
|
1,124.3
|
|
|
5.0
|
|
||
2024
|
996.4
|
|
|
4.9
|
|
||
Thereafter
|
4,087.7
|
|
|
42.6
|
|
||
Total minimum lease payments
|
$
|
10,230.9
|
|
|
$
|
67.9
|
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
September 29, 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
|
8.2
|
|
|
(10.7
|
)
|
|
(29.7
|
)
|
|
(143.7
|
)
|
|
(175.9
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.6
|
|
|
4.0
|
|
|
—
|
|
|
(1.7
|
)
|
|
2.9
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
8.8
|
|
|
(6.7
|
)
|
|
(29.7
|
)
|
|
(145.4
|
)
|
|
(173.0
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
3.9
|
|
|
$
|
11.0
|
|
|
$
|
(10.1
|
)
|
|
$
|
(508.1
|
)
|
|
$
|
(503.3
|
)
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
(2.5
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
14.0
|
|
|
$
|
(163.0
|
)
|
|
$
|
(155.6
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
(5.1
|
)
|
|
17.9
|
|
|
5.6
|
|
|
(216.6
|
)
|
|
(198.2
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
2.7
|
|
|
3.9
|
|
|
—
|
|
|
16.9
|
|
|
23.5
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(2.4
|
)
|
|
21.8
|
|
|
5.6
|
|
|
(199.7
|
)
|
|
(174.7
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(4.9
|
)
|
|
$
|
17.7
|
|
|
$
|
19.6
|
|
|
$
|
(362.7
|
)
|
|
$
|
(330.3
|
)
|
(in millions)
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
October 1, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gains/(losses) in AOCI, beginning of period
|
$
|
1.1
|
|
|
$
|
10.9
|
|
|
$
|
1.3
|
|
|
$
|
(121.7
|
)
|
|
$
|
(108.4
|
)
|
Net gains/(losses) recognized in OCI before reclassifications
|
(6.6
|
)
|
|
40.6
|
|
|
12.7
|
|
|
(40.7
|
)
|
|
6.0
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
3.0
|
|
|
(55.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
(53.2
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(3.6
|
)
|
|
(15.0
|
)
|
|
12.7
|
|
|
(41.3
|
)
|
|
(47.2
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(2.5
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
14.0
|
|
|
$
|
(163.0
|
)
|
|
$
|
(155.6
|
)
|
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||||||
|
Fiscal Year Ended
|
|
||||||||||||
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|
||||||||
Gains/(losses) on available-for-sale securities
|
|
$
|
0.9
|
|
|
$
|
(3.6
|
)
|
|
$
|
(4.1
|
)
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
(3.9
|
)
|
|
(3.9
|
)
|
|
70.7
|
|
|
||||
Translation adjustment (1)
|
|
|
|
|
|
|
|
|
||||||
Brazil
|
|
—
|
|
|
(24.1
|
)
|
|
—
|
|
|
Net gain resulting from divestiture of certain operations
|
|||
East China joint venture
|
|
—
|
|
|
7.2
|
|
|
—
|
|
|
Gain resulting from acquisition of joint venture
|
|||
Taiwan joint venture
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
Net gain resulting from divestiture of certain operations
|
|||
Thailand
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
Net gain resulting from divestiture of certain operations
|
|||
Other
|
|
—
|
|
|
(1.7
|
)
|
|
0.6
|
|
|
Interest income and other, net
|
|||
|
|
(1.3
|
)
|
|
(24.7
|
)
|
|
67.2
|
|
|
Total before tax
|
|||
|
|
(1.6
|
)
|
|
1.2
|
|
|
(14.0
|
)
|
|
Tax (expense)/benefit
|
|||
|
|
$
|
(2.9
|
)
|
|
$
|
(23.5
|
)
|
|
$
|
53.2
|
|
|
Net of tax
|
(1)
|
Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign businesses.
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Options
|
$
|
20.0
|
|
|
$
|
28.0
|
|
|
$
|
44.3
|
|
RSUs
|
288.0
|
|
|
222.3
|
|
|
131.7
|
|
|||
Total stock-based compensation expense recognized in the consolidated statements of earnings
|
$
|
308.0
|
|
|
$
|
250.3
|
|
|
$
|
176.0
|
|
Total related tax benefit
|
$
|
59.3
|
|
|
$
|
62.4
|
|
|
$
|
57.6
|
|
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
|
$
|
3.4
|
|
|
$
|
3.5
|
|
|
$
|
1.9
|
|
|
Employee Stock Options
Granted During the Period |
||||||||||
Fiscal Year Ended
|
2019
|
|
2018
|
|
2017
|
||||||
Expected term (in years)
|
4.1
|
|
|
3.6
|
|
|
3.9
|
|
|||
Expected stock price volatility
|
21.6
|
%
|
|
20.5
|
%
|
|
21.6
|
%
|
|||
Risk-free interest rate
|
2.9
|
%
|
|
2.1
|
%
|
|
1.5
|
%
|
|||
Expected dividend yield
|
2.1
|
%
|
|
2.2
|
%
|
|
1.8
|
%
|
|||
Weighted average grant price
|
$
|
67.33
|
|
|
$
|
56.56
|
|
|
$
|
56.12
|
|
Estimated fair value per option granted
|
$
|
11.06
|
|
|
$
|
7.32
|
|
|
$
|
8.56
|
|
|
Shares
Subject to Options |
|
Weighted
Average Exercise Price per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding, September 30, 2018
|
27.3
|
|
|
$
|
42.13
|
|
|
5.2
|
|
$
|
418
|
|
Granted
|
0.5
|
|
|
67.33
|
|
|
|
|
|
|||
Exercised
|
(11.6
|
)
|
|
32.46
|
|
|
|
|
|
|||
Expired/forfeited
|
(1.0
|
)
|
|
56.13
|
|
|
|
|
|
|||
Outstanding, September 29, 2019
|
15.2
|
|
|
49.45
|
|
|
5.0
|
|
592
|
|
||
Exercisable, September 29, 2019
|
10.2
|
|
|
45.38
|
|
|
3.7
|
|
440
|
|
||
Vested and expected to vest, September 29, 2019
|
14.9
|
|
|
49.33
|
|
|
5.0
|
|
583
|
|
|
Number
of Shares |
|
Weighted
Average Grant Date Fair Value per Share |
|
Weighted
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Nonvested, September 30, 2018
|
11.2
|
|
|
$
|
55.62
|
|
|
1.0
|
|
$
|
636
|
|
Granted
|
4.6
|
|
|
68.14
|
|
|
|
|
|
|||
Vested
|
(4.6
|
)
|
|
55.71
|
|
|
|
|
|
|||
Forfeited/canceled
|
(2.3
|
)
|
|
59.88
|
|
|
|
|
|
|||
Nonvested, September 29, 2019
|
8.9
|
|
|
62.56
|
|
|
1.1
|
|
788
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
United States
|
$
|
3,518.7
|
|
|
$
|
4,826.0
|
|
|
$
|
3,393.0
|
|
Foreign
|
947.5
|
|
|
954.0
|
|
|
924.5
|
|
|||
Total earnings before income taxes
|
$
|
4,466.2
|
|
|
$
|
5,780.0
|
|
|
$
|
4,317.5
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Current taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
1,414.3
|
|
|
$
|
156.2
|
|
|
$
|
931.0
|
|
U.S. state and local
|
447.8
|
|
|
52.0
|
|
|
170.8
|
|
|||
Foreign
|
458.3
|
|
|
327.0
|
|
|
216.6
|
|
|||
Total current taxes
|
2,320.4
|
|
|
535.2
|
|
|
1,318.4
|
|
|||
Deferred taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
(1,074.5
|
)
|
|
633.7
|
|
|
121.2
|
|
|||
U.S. state and local
|
(322.4
|
)
|
|
101.5
|
|
|
14.2
|
|
|||
Foreign
|
(51.9
|
)
|
|
(8.4
|
)
|
|
(21.2
|
)
|
|||
Total deferred taxes
|
(1,448.8
|
)
|
|
726.8
|
|
|
114.2
|
|
|||
Total income tax expense
|
$
|
871.6
|
|
|
$
|
1,262.0
|
|
|
$
|
1,432.6
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|||
Statutory rate
|
21.0
|
%
|
|
24.5
|
%
|
|
35.0
|
%
|
State income taxes, net of federal tax benefit
|
2.1
|
|
|
2.1
|
|
|
2.8
|
|
Foreign rate differential
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(2.8
|
)
|
Excess tax benefits of stock-based compensation
|
(2.1
|
)
|
|
(0.9
|
)
|
|
—
|
|
Residual tax on foreign earnings
|
1.7
|
|
|
—
|
|
|
—
|
|
Foreign derived intangible income
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
Tax impacts related to sale of certain operations
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
Domestic production activity deduction
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
Gain resulting from acquisition of joint venture
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
Impact of the Tax Act
|
—
|
|
|
2.8
|
|
|
—
|
|
Other, net
|
(0.3
|
)
|
|
(0.8
|
)
|
|
—
|
|
Effective tax rate
|
19.5
|
%
|
|
21.8
|
%
|
|
33.2
|
%
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Property, plant and equipment
|
$
|
66.5
|
|
|
$
|
67.4
|
|
Intangible assets and goodwill
|
230.0
|
|
|
—
|
|
||
Accrued occupancy costs
|
121.6
|
|
|
109.0
|
|
||
Accrued compensation and related costs
|
62.7
|
|
|
64.2
|
|
||
Stored value card liability and deferred revenue
|
1,649.0
|
|
|
144.2
|
|
||
Stock-based compensation
|
77.5
|
|
|
96.7
|
|
||
Net operating losses
|
75.6
|
|
|
79.2
|
|
||
Other
|
130.7
|
|
|
129.5
|
|
||
Total
|
$
|
2,413.6
|
|
|
$
|
690.2
|
|
Valuation allowance
|
(75.1
|
)
|
|
(129.3
|
)
|
||
Total deferred tax asset, net of valuation allowance
|
$
|
2,338.5
|
|
|
$
|
560.9
|
|
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(400.9
|
)
|
|
(348.1
|
)
|
||
Intangible assets and goodwill
|
(209.9
|
)
|
|
(274.2
|
)
|
||
Other
|
(148.3
|
)
|
|
(74.1
|
)
|
||
Total
|
(759.1
|
)
|
|
(696.4
|
)
|
||
Net deferred tax asset (liability)
|
$
|
1,579.4
|
|
|
$
|
(135.5
|
)
|
Reported as:
|
|
|
|
||||
Deferred income tax assets
|
1,765.8
|
|
|
134.7
|
|
||
Deferred income tax liabilities (included in Other long-term liabilities)
|
(186.4
|
)
|
|
(270.2
|
)
|
||
Net deferred tax asset (liability)
|
$
|
1,579.4
|
|
|
$
|
(135.5
|
)
|
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Beginning balance
|
$
|
224.6
|
|
|
$
|
196.9
|
|
|
$
|
146.5
|
|
Increase related to prior year tax positions
|
3.8
|
|
|
17.5
|
|
|
10.4
|
|
|||
Decrease related to prior year tax positions
|
(75.3
|
)
|
|
(41.8
|
)
|
|
—
|
|
|||
Increase related to current year tax positions
|
18.5
|
|
|
62.4
|
|
|
41.3
|
|
|||
Decreases related to settlements with taxing authorities
|
(16.4
|
)
|
|
(4.5
|
)
|
|
—
|
|
|||
Decrease related to lapsing of statute of limitations
|
(23.1
|
)
|
|
(5.9
|
)
|
|
(1.3
|
)
|
|||
Ending balance
|
$
|
132.1
|
|
|
$
|
224.6
|
|
|
$
|
196.9
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Net earnings attributable to Starbucks
|
$
|
3,599.2
|
|
|
$
|
4,518.3
|
|
|
$
|
2,884.7
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,221.2
|
|
|
1,382.7
|
|
|
1,449.5
|
|
|||
Dilutive effect of outstanding common stock options and RSUs
|
12.0
|
|
|
11.9
|
|
|
12.0
|
|
|||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,233.2
|
|
|
1,394.6
|
|
|
1,461.5
|
|
|||
EPS — basic
|
$
|
2.95
|
|
|
$
|
3.27
|
|
|
$
|
1.99
|
|
EPS — diluted
|
$
|
2.92
|
|
|
$
|
3.24
|
|
|
$
|
1.97
|
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
|||||||||||||||
Beverage
|
$
|
15,921.2
|
|
|
60
|
%
|
|
$
|
14,463.1
|
|
|
59
|
%
|
|
$
|
12,915.0
|
|
|
58
|
%
|
Food
|
4,792.8
|
|
|
18
|
%
|
|
4,397.7
|
|
|
18
|
%
|
|
3,832.1
|
|
|
17
|
%
|
|||
Packaged and single-serve coffees and teas
|
2,126.8
|
|
|
8
|
%
|
|
2,797.5
|
|
|
11
|
%
|
|
2,883.6
|
|
|
13
|
%
|
|||
Other (1)
|
3,667.8
|
|
|
14
|
%
|
|
3,061.2
|
|
|
12
|
%
|
|
2,756.1
|
|
|
12
|
%
|
|||
Total
|
$
|
26,508.6
|
|
|
100
|
%
|
|
$
|
24,719.5
|
|
|
100
|
%
|
|
$
|
22,386.8
|
|
|
100
|
%
|
(1)
|
“Other” primarily consists of royalty and licensing revenues, beverage-related ingredients, serveware, and ready-to-drink beverages, among other items.
|
Fiscal Year Ended
|
Sep 29, 2019
|
|
Sep 30, 2018
|
|
Oct 1, 2017
|
||||||
Net revenues:
|
|
|
|
|
|
||||||
United States
|
$
|
18,622.7
|
|
|
$
|
17,409.4
|
|
|
$
|
16,527.1
|
|
Other countries
|
7,885.9
|
|
|
7,310.1
|
|
|
5,859.7
|
|
|||
Total
|
$
|
26,508.6
|
|
|
$
|
24,719.5
|
|
|
$
|
22,386.8
|
|
|
|
|
|
|
|
||||||
Long-lived assets:
|
|
|
|
|
|
||||||
United States
|
$
|
7,330.2
|
|
|
$
|
5,635.9
|
|
|
$
|
5,848.3
|
|
Other countries
|
6,235.5
|
|
|
6,026.3
|
|
|
3,234.0
|
|
|||
Total
|
$
|
13,565.7
|
|
|
$
|
11,662.2
|
|
|
$
|
9,082.3
|
|
(in millions)
|
Americas
|
|
International
|
|
Channel
Development
|
|
Corporate and Other
|
|
Total
|
||||||||||
Fiscal 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
18,259.0
|
|
|
$
|
6,190.7
|
|
|
$
|
1,992.6
|
|
|
$
|
66.3
|
|
|
$
|
26,508.6
|
|
Depreciation and amortization expenses
|
696.1
|
|
|
511.5
|
|
|
13.0
|
|
|
156.7
|
|
|
1,377.3
|
|
|||||
Income from equity investees
|
—
|
|
|
102.4
|
|
|
195.6
|
|
|
—
|
|
|
298.0
|
|
|||||
Operating income/(loss)
|
3,782.8
|
|
|
964.7
|
|
|
697.5
|
|
|
(1,367.1
|
)
|
|
4,077.9
|
|
|||||
Total assets
|
$
|
4,446.7
|
|
|
$
|
6,724.6
|
|
|
$
|
132.2
|
|
|
$
|
7,916.1
|
|
|
$
|
19,219.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiscal 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
16,748.6
|
|
|
$
|
5,551.2
|
|
|
$
|
2,297.3
|
|
|
$
|
122.4
|
|
|
$
|
24,719.5
|
|
Depreciation and amortization expenses
|
641.0
|
|
|
447.6
|
|
|
1.3
|
|
|
157.1
|
|
|
1,247.0
|
|
|||||
Income from equity investees
|
—
|
|
|
117.4
|
|
|
183.8
|
|
|
—
|
|
|
301.2
|
|
|||||
Operating income/(loss)
|
3,485.2
|
|
|
872.8
|
|
|
927.1
|
|
|
(1,401.8
|
)
|
|
3,883.3
|
|
|||||
Total assets
|
$
|
4,473.7
|
|
|
$
|
6,361.9
|
|
|
$
|
148.2
|
|
|
$
|
13,172.6
|
|
|
$
|
24,156.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiscal 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
15,629.4
|
|
|
$
|
4,204.3
|
|
|
$
|
2,256.6
|
|
|
$
|
296.5
|
|
|
$
|
22,386.8
|
|
Depreciation and amortization expenses
|
616.1
|
|
|
233.2
|
|
|
3.0
|
|
|
159.1
|
|
|
1,011.4
|
|
|||||
Income from equity investees
|
—
|
|
|
197.0
|
|
|
194.4
|
|
|
—
|
|
|
391.4
|
|
|||||
Operating income/(loss)
|
3,577.2
|
|
|
835.6
|
|
|
967.0
|
|
|
(1,245.1
|
)
|
|
4,134.7
|
|
|||||
Total assets
|
$
|
3,374.9
|
|
|
$
|
3,117.1
|
|
|
$
|
129.1
|
|
|
$
|
7,744.5
|
|
|
$
|
14,365.6
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
||||||||||
Fiscal 2019:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
6,632.7
|
|
|
$
|
6,305.9
|
|
|
$
|
6,823.0
|
|
|
$
|
6,747.0
|
|
|
$
|
26,508.6
|
|
Operating income
|
1,015.7
|
|
|
857.7
|
|
|
1,121.3
|
|
|
1,083.3
|
|
|
4,077.9
|
|
|||||
Net earnings attributable to Starbucks
|
760.6
|
|
|
663.2
|
|
|
1,372.8
|
|
|
802.9
|
|
|
3,599.2
|
|
|||||
EPS — diluted
|
0.61
|
|
|
0.53
|
|
|
1.12
|
|
|
0.67
|
|
|
2.92
|
|
|||||
Fiscal 2018:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
$
|
6,073.7
|
|
|
$
|
6,031.8
|
|
|
$
|
6,310.3
|
|
|
$
|
6,303.6
|
|
|
$
|
24,719.5
|
|
Operating income
|
1,116.1
|
|
|
772.5
|
|
|
1,038.2
|
|
|
956.6
|
|
|
3,883.3
|
|
|||||
Net earnings attributable to Starbucks
|
2,250.2
|
|
|
660.1
|
|
|
852.5
|
|
|
755.8
|
|
|
4,518.3
|
|
|||||
EPS — diluted
|
1.57
|
|
|
0.47
|
|
|
0.61
|
|
|
0.56
|
|
|
3.24
|
|
•
|
We tested the effectiveness of controls over management’s goodwill impairment evaluation, including the controls related to management’s forecast of future revenues
|
•
|
We evaluated management’s ability to accurately forecast future revenues by comparing actual results to management’s historical forecast
|
•
|
We assessed the reasonableness of the forecast of future revenues by comparing the forecast to:
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
Item 13.
|
Certain Relationships, Related Transactions and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
•
|
Consolidated Statements of Earnings for the fiscal years ended September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
Consolidated Statements of Comprehensive Income for the fiscal years ended September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
Consolidated Balance Sheets as of September 29, 2019 and September 30, 2018;
|
•
|
Consolidated Statements of Cash Flows for the fiscal years ended September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
Consolidated Statements of Equity for the fiscal years ended September 29, 2019, September 30, 2018, and October 1, 2017;
|
•
|
Notes to Consolidated Financial Statements; and
|
•
|
Reports of Independent Registered Public Accounting Firm
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
8-K
|
|
0-20322
|
|
5/7/2018
|
|
2.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
3.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
6/5/2018
|
|
3.1
|
|
|
||
|
|
S-3ASR
|
|
333-213645
|
|
9/15/2016
|
|
4.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
3/20/2017
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
3/20/2017
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
11/22/2017
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
11/22/2017
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
11/22/2017
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
2/28/2018
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
2/28/2018
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
2/28/2018
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
8/10/2018
|
|
4.5
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/13/2019
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/13/2019
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/13/2019
|
|
4.4
|
|
|
||
|
|
|
S-3ASR
|
|
333-190955
|
|
9/3/2013
|
|
4.1
|
|
|
|
|
|
8-K
|
|
0-20322
|
|
9/6/2013
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
9/6/2013
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.2
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
12/5/2013
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.2
|
|
|
||
|
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.3
|
|
|
|
|
|
8-K
|
|
0-20322
|
|
6/10/2015
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
2/4/2016
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
8-K
|
|
0-20322
|
|
2/4/2016
|
|
4.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/16/2016
|
|
4.4
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
5/16/2016
|
|
4.5
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
10-Q
|
|
0-20322
|
|
8/1/2017
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
7/30/2019
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
2/4/2011
|
|
10.2
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/23/2003
|
|
10.9
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.5
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
12/14/2006
|
|
10.12
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.7
|
|
|
||
|
|
|
10-Q
|
|
0-20322
|
|
2/10/2006
|
|
10.2
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.9
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
5/2/2012
|
|
10.1
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.14
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
4/26/2016
|
|
10.2
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
4/26/2016
|
|
10.3
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
10/30/2017
|
|
10.1
|
|
|
||
|
|
|
8-K
|
|
0-20322
|
|
10/26/2018
|
|
10.1
|
|
|
|
|
|
8-K
|
|
0-20322
|
|
10/25/2019
|
|
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
7/29/2016
|
|
10.1
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2011
|
|
10.30
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.21
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/18/2016
|
|
10.22
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/17/2017
|
|
10.24
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
10-K
|
|
0-20322
|
|
11/17/2017
|
|
10.25
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/16/2018
|
|
10.23
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/17/2017
|
|
10.26
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
10-Q
|
|
0-20322
|
|
4/29/2014
|
|
10.3
|
|
|
||
|
|
8-K/A
|
|
0-20322
|
|
6/29/2018
|
|
10.1
|
|
|
||
|
|
10-Q
|
|
0-20322
|
|
2/2/2010
|
|
10.3
|
|
|
||
|
|
10-K
|
|
0-20322
|
|
11/14/2014
|
|
10.33
|
|
|
||
|
|
|
10-Q
|
|
0-20322
|
|
5/2/2017
|
|
10.1
|
|
|
|
|
|
8-K
|
|
0-20322
|
|
9/6/2017
|
|
10.1
|
|
|
||
|
|
8-K
|
|
0-20322
|
|
10/9/2018
|
|
10.1
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of Filing
|
|
Exhibit
Number
|
|
Filed
Herewith
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
__
|
|
__
|
|
__
|
|
__
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
||
101
|
|
The following financial statements from the Company’s 10-K for the fiscal year ended September 29, 2019, formatted in iXBRL: (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity, and (vi) Notes to Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
*
|
Denotes a management contract or compensatory plan or arrangement.
|
**
|
Furnished herewith.
|
|
|
|
|
STARBUCKS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kevin R. Johnson
|
|
|
Kevin R. Johnson
president and chief executive officer
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
By:
|
|
/s/ Kevin R. Johnson
|
|
president and chief executive officer, director
(principal executive officer)
|
|
|
Kevin R. Johnson
|
|
|
|
|
|
|
|
By:
|
|
/s/ Patrick J. Grismer
|
|
executive vice president, chief financial officer
(principal financial officer)
|
|
|
Patrick J. Grismer
|
|
|
|
|
|
|
|
By:
|
|
/s/ Jill L. Walker
|
|
senior vice president, Corporate Financial Services, and chief accounting officer (principal accounting officer)
|
|
|
Jill L. Walker
|
|
|
|
|
|
|
|
By:
|
|
/s/ Richard E. Allison, Jr.
|
|
director
|
|
|
Richard E. Allison, Jr.
|
|
|
|
|
|
|
|
By:
|
|
/s/ Rosalind G. Brewer
|
|
director
|
|
|
Rosalind G. Brewer
|
|
|
|
|
|
|
|
By:
|
|
/s/ Andrew Campion
|
|
director
|
|
|
Andrew Campion
|
|
|
|
|
|
|
|
By:
|
|
/s/ Mary N. Dillon
|
|
director
|
|
|
Mary N. Dillon
|
|
|
|
|
|
|
|
By:
|
|
/s/ Mellody Hobson
|
|
director
|
|
|
Mellody Hobson
|
|
|
|
|
|
|
|
By:
|
|
/s/ Jørgen Vig Knudstorp
|
|
director
|
|
|
Jørgen Vig Knudstorp
|
|
|
|
|
|
|
|
By:
|
|
/s/ Isabel Ge Mahe
|
|
director
|
|
|
Isabel Ge Mahe
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
|
|
By:
|
|
/s/ Satya Nadella
|
|
director
|
|
|
Satya Nadella
|
|
|
|
|
|
|
|
By:
|
|
/s/ Joshua Cooper Ramo
|
|
director
|
|
|
Joshua Cooper Ramo
|
|
|
|
|
|
|
|
By:
|
|
/s/ Clara Shih
|
|
director
|
|
|
Clara Shih
|
|
|
|
|
|
|
|
By:
|
|
/s/ Javier G. Teruel
|
|
director
|
|
|
Javier G. Teruel
|
|
|
|
|
|
|
|
By:
|
|
/s/ Myron E. Ullman, III
|
|
director
|
|
|
Myron E. Ullman, III
|
|
|
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