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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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.44 | 0.50% | 88.28 | 87.69 | 93.59 | 89.25 | 87.3704 | 87.40 | 7,185,259 | 05:00:08 |
Washington
|
91-1325671
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(IRS Employer
Identification No.)
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
|
|
|
|
Emerging growth company
|
¨
|
|
|
Title
|
Shares Outstanding as of January 24, 2018
|
Common Stock, par value $0.001 per share
|
1,405.6 million
|
|
|
|
PART I. FINANCIAL INFORMATION
|
||
|
|
|
Item 1
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
|
||
PART II. OTHER INFORMATION
|
||
|
|
|
Item 1
|
||
Item 1A
|
||
Item 2
|
||
Item 6
|
||
Item 1.
|
Financial Statements
|
|
Quarter Ended
|
||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||
Net revenues:
|
|
|
|
||||
Company-operated stores
|
$
|
4,741.8
|
|
|
$
|
4,469.3
|
|
Licensed stores
|
682.4
|
|
|
602.4
|
|
||
CPG, foodservice and other
|
649.5
|
|
|
661.2
|
|
||
Total net revenues
|
6,073.7
|
|
|
5,732.9
|
|
||
Cost of sales including occupancy costs
|
2,502.9
|
|
|
2,295.0
|
|
||
Store operating expenses
|
1,737.0
|
|
|
1,638.2
|
|
||
Other operating expenses
|
141.6
|
|
|
145.4
|
|
||
Depreciation and amortization expenses
|
258.8
|
|
|
249.7
|
|
||
General and administrative expenses
|
379.1
|
|
|
356.4
|
|
||
Restructuring expenses
|
27.6
|
|
|
—
|
|
||
Total operating expenses
|
5,047.0
|
|
|
4,684.7
|
|
||
Income from equity investees
|
89.4
|
|
|
84.4
|
|
||
Operating income
|
1,116.1
|
|
|
1,132.6
|
|
||
Gain resulting from acquisition of joint venture
|
1,326.3
|
|
|
—
|
|
||
Gains resulting from divestiture of certain operations
|
501.2
|
|
|
—
|
|
||
Interest income and other, net
|
88.2
|
|
|
24.1
|
|
||
Interest expense
|
(25.9
|
)
|
|
(23.8
|
)
|
||
Earnings before income taxes
|
3,005.9
|
|
|
1,132.9
|
|
||
Income tax expense
|
755.8
|
|
|
381.4
|
|
||
Net earnings including noncontrolling interests
|
2,250.1
|
|
|
751.5
|
|
||
Net loss attributable to noncontrolling interests
|
(0.1
|
)
|
|
(0.3
|
)
|
||
Net earnings attributable to Starbucks
|
$
|
2,250.2
|
|
|
$
|
751.8
|
|
Earnings per share - basic
|
$
|
1.58
|
|
|
$
|
0.52
|
|
Earnings per share - diluted
|
$
|
1.57
|
|
|
$
|
0.51
|
|
Weighted average shares outstanding:
|
|
|
|
||||
Basic
|
1,421.0
|
|
|
1,457.5
|
|
||
Diluted
|
1,434.6
|
|
|
1,470.5
|
|
||
Cash dividends declared per share
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
Quarter Ended
|
||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||
Net earnings including noncontrolling interests
|
$
|
2,250.1
|
|
|
$
|
751.5
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
||||
Unrealized holding losses on available-for-sale securities
|
(2.8
|
)
|
|
(13.4
|
)
|
||
Tax (expense)/benefit
|
1.0
|
|
|
4.1
|
|
||
Unrealized gains/(losses) on cash flow hedging instruments
|
(3.7
|
)
|
|
113.5
|
|
||
Tax (expense)/benefit
|
0.8
|
|
|
(26.5
|
)
|
||
Unrealized gains/(losses) on net investment hedging instruments
|
(0.3
|
)
|
|
41.1
|
|
||
Tax (expense)/benefit
|
0.1
|
|
|
(15.2
|
)
|
||
Translation adjustment and other
|
18.0
|
|
|
(171.8
|
)
|
||
Tax (expense)/benefit
|
2.9
|
|
|
—
|
|
||
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment
|
15.1
|
|
|
(81.7
|
)
|
||
Tax expense/(benefit)
|
(0.8
|
)
|
|
16.0
|
|
||
Other comprehensive income/(loss)
|
30.3
|
|
|
(133.9
|
)
|
||
Comprehensive income including noncontrolling interests
|
2,280.4
|
|
|
617.6
|
|
||
Comprehensive loss attributable to noncontrolling interests
|
(0.1
|
)
|
|
(0.3
|
)
|
||
Comprehensive income attributable to Starbucks
|
$
|
2,280.5
|
|
|
$
|
617.9
|
|
|
Dec 31,
2017 |
|
Oct 1,
2017 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,661.4
|
|
|
$
|
2,462.3
|
|
Short-term investments
|
106.6
|
|
|
228.6
|
|
||
Accounts receivable, net
|
851.8
|
|
|
870.4
|
|
||
Inventories
|
1,313.2
|
|
|
1,364.0
|
|
||
Prepaid expenses and other current assets
|
950.5
|
|
|
358.1
|
|
||
Total current assets
|
6,883.5
|
|
|
5,283.4
|
|
||
Long-term investments
|
363.5
|
|
|
542.3
|
|
||
Equity and cost investments
|
287.6
|
|
|
481.6
|
|
||
Property, plant and equipment, net
|
5,378.7
|
|
|
4,919.5
|
|
||
Deferred income taxes, net
|
157.9
|
|
|
795.4
|
|
||
Other long-term assets
|
526.3
|
|
|
362.8
|
|
||
Other intangible assets
|
1,246.2
|
|
|
441.4
|
|
||
Goodwill
|
3,674.8
|
|
|
1,539.2
|
|
||
TOTAL ASSETS
|
$
|
18,518.5
|
|
|
$
|
14,365.6
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
852.1
|
|
|
$
|
782.5
|
|
Accrued liabilities
|
3,761.1
|
|
|
1,934.5
|
|
||
Insurance reserves
|
210.0
|
|
|
215.2
|
|
||
Stored value card liability
|
1,668.0
|
|
|
1,288.5
|
|
||
Current portion of long-term debt
|
349.9
|
|
|
—
|
|
||
Total current liabilities
|
6,841.1
|
|
|
4,220.7
|
|
||
Long-term debt
|
4,566.5
|
|
|
3,932.6
|
|
||
Other long-term liabilities
|
1,352.0
|
|
|
755.3
|
|
||
Total liabilities
|
12,759.6
|
|
|
8,908.6
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,407.6 and 1,431.6 shares, respectively
|
1.4
|
|
|
1.4
|
|
||
Additional paid-in capital
|
41.1
|
|
|
41.1
|
|
||
Retained earnings
|
5,834.9
|
|
|
5,563.2
|
|
||
Accumulated other comprehensive loss
|
(125.3
|
)
|
|
(155.6
|
)
|
||
Total shareholders’ equity
|
5,752.1
|
|
|
5,450.1
|
|
||
Noncontrolling interests
|
6.8
|
|
|
6.9
|
|
||
Total equity
|
5,758.9
|
|
|
5,457.0
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
18,518.5
|
|
|
$
|
14,365.6
|
|
|
Quarter Ended
|
||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net earnings including noncontrolling interests
|
$
|
2,250.1
|
|
|
$
|
751.5
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
272.4
|
|
|
263.2
|
|
||
Deferred income taxes, net
|
744.8
|
|
|
56.4
|
|
||
Income earned from equity method investees
|
(66.2
|
)
|
|
(65.3
|
)
|
||
Distributions received from equity method investees
|
81.3
|
|
|
39.1
|
|
||
Gain resulting from acquisition of joint venture
|
(1,326.3
|
)
|
|
—
|
|
||
Gains resulting from divestiture of certain retail operations
|
(501.2
|
)
|
|
—
|
|
||
Stock-based compensation
|
61.4
|
|
|
55.0
|
|
||
Other
|
3.3
|
|
|
9.3
|
|
||
Cash provided by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
1.3
|
|
|
(128.7
|
)
|
||
Inventories
|
71.2
|
|
|
146.4
|
|
||
Accounts payable
|
28.1
|
|
|
(34.7
|
)
|
||
Stored value card liability
|
359.6
|
|
|
425.0
|
|
||
Other operating assets and liabilities
|
(145.8
|
)
|
|
12.6
|
|
||
Net cash provided by operating activities
|
1,834.0
|
|
|
1,529.8
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of investments
|
(35.2
|
)
|
|
(323.4
|
)
|
||
Sales of investments
|
316.1
|
|
|
149.6
|
|
||
Maturities and calls of investments
|
21.3
|
|
|
18.1
|
|
||
Additions to property, plant and equipment
|
(429.3
|
)
|
|
(307.4
|
)
|
||
Cash acquired from purchase of equity in joint venture
|
129.5
|
|
|
—
|
|
||
Net proceeds from the sale of certain operations
|
397.1
|
|
|
—
|
|
||
Other
|
(4.5
|
)
|
|
61.6
|
|
||
Net cash provided by/(used by) investing activities
|
395.0
|
|
|
(401.5
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
998.3
|
|
|
—
|
|
||
Repayments of long-term debt
|
—
|
|
|
(400.0
|
)
|
||
Proceeds from issuance of common stock
|
54.3
|
|
|
51.2
|
|
||
Cash dividends paid
|
(428.1
|
)
|
|
(364.0
|
)
|
||
Repurchase of common stock
|
(1,601.0
|
)
|
|
(408.1
|
)
|
||
Minimum tax withholdings on share-based awards
|
(56.0
|
)
|
|
(68.3
|
)
|
||
Other
|
(7.2
|
)
|
|
0.1
|
|
||
Net cash used by financing activities
|
(1,039.7
|
)
|
|
(1,189.1
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
9.8
|
|
|
(33.4
|
)
|
||
Net increase/(decrease) in cash and cash equivalents
|
1,199.1
|
|
|
(94.2
|
)
|
||
CASH AND CASH EQUIVALENTS:
|
|
|
|
||||
Beginning of period
|
2,462.3
|
|
|
2,128.8
|
|
||
End of period
|
$
|
3,661.4
|
|
|
$
|
2,034.6
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest, net of capitalized interest
|
$
|
38.3
|
|
|
$
|
41.1
|
|
Income taxes, net of refunds
|
$
|
140.1
|
|
|
$
|
270.8
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
|
|
|
|
||||
Payable for East China acquisition (Note 2)
|
$
|
1,431.0
|
|
|
$
|
—
|
|
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 1:
|
Summary of Significant Accounting Policies
|
Note 2:
|
Acquisitions and Divestitures
|
Consideration:
|
|
|
||
Acquisition payable for UPG 50% equity interest
|
|
$
|
1,431.0
|
|
Fair value of our preexisting 50% equity interest
|
|
1,431.0
|
|
|
Settlement of pre-existing liabilities
|
|
86.3
|
|
|
Total consideration
|
|
$
|
2,948.3
|
|
|
|
|
||
Fair value of assets acquired and liabilities assumed:
|
|
|
||
Cash and cash equivalents
|
|
$
|
129.5
|
|
Accounts receivable, net
|
|
14.3
|
|
|
Inventories
|
|
18.0
|
|
|
Prepaid expenses and other current assets
|
|
20.6
|
|
|
Property, plant and equipment
|
|
256.6
|
|
|
Other long-term assets
|
|
35.7
|
|
|
Other intangible assets
|
|
818.0
|
|
|
Goodwill
|
|
2,137.1
|
|
|
Total assets acquired
|
|
3,429.8
|
|
|
Accounts payable
|
|
43.2
|
|
|
Accrued liabilities
|
|
173.8
|
|
|
Stored value card liability
|
|
18.0
|
|
|
Other long-term liabilities
|
|
246.5
|
|
|
Total liabilities assumed
|
|
481.5
|
|
|
Total consideration
|
|
$
|
2,948.3
|
|
|
Operating Leases
|
||
Year 1
|
$
|
69.6
|
|
Year 2
|
60.6
|
|
|
Year 3
|
52.2
|
|
|
Year 4
|
45.8
|
|
|
Year 5
|
37.0
|
|
|
Thereafter
|
83.5
|
|
|
Total minimum lease payments
|
$
|
348.7
|
|
|
|
Pro Forma (unaudited)
|
||||||
|
|
Quarter Ended
|
||||||
|
|
Dec 31, 2017
|
|
Jan 1, 2017
(1)
|
||||
Revenue
|
|
$
|
6,344.7
|
|
|
$
|
5,948.0
|
|
Net earnings attributable to Starbucks
|
|
1,122.8
|
|
|
1,799.2
|
|
(1)
|
The pro forma net earnings attributable to Starbucks for fiscal 2017 includes the acquisition-related gain of
$1.3 billion
, and transaction and integration costs of
$3.7 million
for the quarter ended December 31, 2017.
|
Note 3:
|
Derivative Financial Instruments
|
|
Net Gains/(Losses)
Included in AOCI
|
|
Net Gains Expected to be Reclassified from AOCI into Earnings within 12 Months
|
|
Outstanding Contract/Debt Remaining Maturity
(Months)
|
||||||||
|
Dec 31,
2017 |
|
Oct 1,
2017 |
|
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||
Interest rates
|
$
|
16.8
|
|
|
$
|
17.6
|
|
|
$
|
3.0
|
|
|
0
|
Cross-currency swaps
|
(7.5
|
)
|
|
(6.0
|
)
|
|
—
|
|
|
83
|
|||
Foreign currency - other
|
(8.2
|
)
|
|
(9.1
|
)
|
|
(5.8
|
)
|
|
36
|
|||
Coffee
|
(2.3
|
)
|
|
(6.6
|
)
|
|
(2.3
|
)
|
|
3
|
|||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||
Foreign currency
|
16.1
|
|
|
16.2
|
|
|
—
|
|
|
0
|
|||
Foreign currency debt
|
(2.4
|
)
|
|
(2.2
|
)
|
|
—
|
|
|
76
|
|
Quarter Ended
|
||||||||||||||
|
Gains/(Losses)
Recognized in
OCI Before Reclassifications
|
|
Gains/(Losses) Reclassified from
AOCI to Earnings
|
||||||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||||||
Interest rates
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
Cross-currency swaps
|
(2.4
|
)
|
|
75.3
|
|
|
(0.5
|
)
|
|
77.6
|
|
||||
Foreign currency - other
|
(1.3
|
)
|
|
37.2
|
|
|
(2.8
|
)
|
|
4.4
|
|
||||
Coffee
|
—
|
|
|
1.0
|
|
|
(4.7
|
)
|
|
(0.7
|
)
|
||||
Net Investment Hedges:
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
(0.3
|
)
|
|
41.1
|
|
|
0.1
|
|
|
—
|
|
||||
Foreign currency debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Gains/(Losses) Recognized in Earnings
|
||||||
|
Quarter Ended
|
||||||
|
Dec 31, 2017
|
|
Jan 1, 2017
|
||||
Non-Designated Derivatives:
|
|
|
|
||||
Foreign currency - other
|
$
|
3.7
|
|
|
$
|
8.3
|
|
Dairy
|
(2.1
|
)
|
|
5.1
|
|
||
Diesel fuel and other commodities
|
1.4
|
|
|
0.2
|
|
||
Designated Fair Value Hedging Instruments:
|
|
|
|
||||
Interest rate swap
|
(7.5
|
)
|
|
—
|
|
|
Dec 31, 2017
|
|
Oct 1, 2017
|
||||
Interest rate swap
|
$
|
750
|
|
|
$
|
750
|
|
Cross-currency swaps
|
495
|
|
|
514
|
|
||
Foreign currency - other
|
998
|
|
|
901
|
|
||
Dairy
|
57
|
|
|
14
|
|
||
Diesel fuel and other commodities
|
13
|
|
|
41
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
Dec 31, 2017
|
|
Oct 1, 2017
|
|
Dec 31, 2017
|
|
Oct 1, 2017
|
||||||||
Designated Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency swaps
|
$
|
10.0
|
|
|
$
|
12.4
|
|
|
$
|
9.9
|
|
|
$
|
9.8
|
|
Foreign currency - other
|
6.4
|
|
|
7.7
|
|
|
18.0
|
|
|
20.8
|
|
||||
Net investment hedges
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swap
|
—
|
|
|
—
|
|
|
11.6
|
|
|
3.8
|
|
||||
Non-designated Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
21.2
|
|
|
15.8
|
|
|
4.1
|
|
|
1.4
|
|
||||
Dairy
|
—
|
|
|
—
|
|
|
3.8
|
|
|
2.4
|
|
||||
Diesel fuel and other commodities
|
2.7
|
|
|
1.6
|
|
|
0.8
|
|
|
0.3
|
|
Note 4:
|
Fair Value Measurements
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Dec 31, 2017 |
|
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
|
$
|
3,661.4
|
|
|
$
|
3,661.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
14.9
|
|
|
—
|
|
|
14.9
|
|
|
—
|
|
||||
U.S. government treasury securities
|
10.5
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale securities
|
25.4
|
|
|
10.5
|
|
|
14.9
|
|
|
—
|
|
||||
Trading securities
|
81.2
|
|
|
81.2
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
106.6
|
|
|
91.7
|
|
|
14.9
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
24.1
|
|
|
—
|
|
|
24.1
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
8.5
|
|
|
—
|
|
|
8.5
|
|
|
—
|
|
||||
Corporate debt securities
|
165.9
|
|
|
—
|
|
|
165.9
|
|
|
—
|
|
||||
Auction rate securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Foreign government obligations
|
12.0
|
|
|
—
|
|
|
12.0
|
|
|
—
|
|
||||
U.S. government treasury securities
|
112.1
|
|
|
112.1
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
52.1
|
|
|
—
|
|
|
52.1
|
|
|
—
|
|
||||
Total long-term investments
|
363.5
|
|
|
112.1
|
|
|
245.5
|
|
|
5.9
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
16.2
|
|
|
—
|
|
|
16.2
|
|
|
—
|
|
||||
Total assets
|
$
|
4,171.8
|
|
|
$
|
3,865.2
|
|
|
$
|
300.7
|
|
|
$
|
5.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
20.8
|
|
|
$
|
4.6
|
|
|
$
|
16.2
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
27.4
|
|
|
—
|
|
|
27.4
|
|
|
—
|
|
||||
Total liabilities
|
$
|
48.2
|
|
|
$
|
4.6
|
|
|
$
|
43.6
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance at
Oct 1, 2017 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other Observable
Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
2,462.3
|
|
|
$
|
2,462.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
7.5
|
|
|
—
|
|
|
7.5
|
|
|
—
|
|
||||
Commercial paper
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Corporate debt securities
|
49.4
|
|
|
—
|
|
|
49.4
|
|
|
—
|
|
||||
Foreign government obligations
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
||||
U.S. government treasury securities
|
81.4
|
|
|
81.4
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Certificates of deposit
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
||||
Total available-for-sale securities
|
151.7
|
|
|
81.4
|
|
|
70.3
|
|
|
—
|
|
||||
Trading securities
|
76.9
|
|
|
76.9
|
|
|
—
|
|
|
—
|
|
||||
Total short-term investments
|
228.6
|
|
|
158.3
|
|
|
70.3
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
13.4
|
|
|
0.1
|
|
|
13.3
|
|
|
—
|
|
||||
Long-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Agency obligations
|
21.8
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
||||
Corporate debt securities
|
207.4
|
|
|
—
|
|
|
207.4
|
|
|
—
|
|
||||
Auction rate securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Foreign government obligations
|
17.1
|
|
|
—
|
|
|
17.1
|
|
|
—
|
|
||||
U.S. government treasury securities
|
127.4
|
|
|
127.4
|
|
|
—
|
|
|
—
|
|
||||
State and local government obligations
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
||||
Mortgage and other asset-backed securities
|
155.7
|
|
|
—
|
|
|
155.7
|
|
|
—
|
|
||||
Total long-term investments
|
542.3
|
|
|
127.4
|
|
|
409.0
|
|
|
5.9
|
|
||||
Other long-term assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
24.4
|
|
|
—
|
|
|
24.4
|
|
|
—
|
|
||||
Total assets
|
$
|
3,271.0
|
|
|
$
|
2,748.1
|
|
|
$
|
517.0
|
|
|
$
|
5.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
16.4
|
|
|
$
|
2.5
|
|
|
$
|
13.9
|
|
|
$
|
—
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
22.1
|
|
|
—
|
|
|
22.1
|
|
|
—
|
|
||||
Total
|
$
|
38.5
|
|
|
$
|
2.5
|
|
|
$
|
36.0
|
|
|
$
|
—
|
|
Note 5:
|
Inventories
(in millions)
|
|
Dec 31, 2017
|
|
Oct 1, 2017
|
|
Jan 1, 2017
|
||||||
Coffee:
|
|
|
|
|
|
||||||
Unroasted
|
$
|
559.9
|
|
|
$
|
541.0
|
|
|
$
|
550.5
|
|
Roasted
|
283.9
|
|
|
301.1
|
|
|
255.7
|
|
|||
Other merchandise held for sale
|
260.6
|
|
|
301.1
|
|
|
256.2
|
|
|||
Packaging and other supplies
|
208.8
|
|
|
220.8
|
|
|
156.3
|
|
|||
Total
|
$
|
1,313.2
|
|
|
$
|
1,364.0
|
|
|
$
|
1,218.7
|
|
Note 6:
|
Supplemental Balance Sheet Information
(in millions)
|
|
Dec 31, 2017
|
|
Oct 1, 2017
|
||||
Receivable from Taiwan divestiture
|
$
|
177.1
|
|
|
$
|
—
|
|
Income tax receivable
|
438.4
|
|
|
68.0
|
|
||
Other prepaid expenses and current assets
|
335.0
|
|
|
290.1
|
|
||
Total prepaid expenses and current assets
|
$
|
950.5
|
|
|
$
|
358.1
|
|
|
Dec 31, 2017
|
|
Oct 1, 2017
|
||||
Land
|
$
|
46.9
|
|
|
$
|
46.9
|
|
Buildings
|
487.2
|
|
|
481.7
|
|
||
Leasehold improvements
|
6,844.0
|
|
|
6,401.0
|
|
||
Store equipment
|
2,234.3
|
|
|
2,110.7
|
|
||
Roasting equipment
|
622.0
|
|
|
619.8
|
|
||
Furniture, fixtures and other
|
1,599.2
|
|
|
1,514.1
|
|
||
Work in progress
|
395.8
|
|
|
409.8
|
|
||
Property, plant and equipment, gross
|
12,229.4
|
|
|
11,584.0
|
|
||
Accumulated depreciation
|
(6,850.7
|
)
|
|
(6,664.5
|
)
|
||
Property, plant and equipment, net
|
$
|
5,378.7
|
|
|
$
|
4,919.5
|
|
|
Dec 31, 2017
|
|
Oct 1, 2017
|
||||
Accrued compensation and related costs
|
$
|
535.2
|
|
|
$
|
524.5
|
|
Accrued occupancy costs
|
178.4
|
|
|
151.3
|
|
||
Accrued taxes
|
421.5
|
|
|
226.6
|
|
||
Accrued dividends payable
|
422.3
|
|
|
429.5
|
|
||
Accrued capital and other operating expenditures
|
772.7
|
|
|
602.6
|
|
||
Payable for East China Acquisition
|
1,431.0
|
|
|
—
|
|
||
Total accrued liabilities
|
$
|
3,761.1
|
|
|
$
|
1,934.5
|
|
Note 7:
|
Debt
|
|
Dec 31, 2017
|
|
Oct 1, 2017
|
|
Stated Interest Rate
|
Effective Interest Rate
(1)
|
||||||||||||
Issuance
|
Amount
|
Estimated Fair Value
|
|
Amount
|
Estimated Fair Value
|
|
||||||||||||
2018 notes
|
$
|
350.0
|
|
$
|
350
|
|
|
$
|
350.0
|
|
$
|
352
|
|
|
2.000
|
%
|
2.012
|
%
|
2020 notes
(2)
|
500.0
|
|
500
|
|
|
—
|
|
—
|
|
|
2.200
|
%
|
2.228
|
%
|
||||
2021 notes
|
500.0
|
|
497
|
|
|
500.0
|
|
501
|
|
|
2.100
|
%
|
2.293
|
%
|
||||
2021 notes
|
250.0
|
|
248
|
|
|
250.0
|
|
250
|
|
|
2.100
|
%
|
1.600
|
%
|
||||
2022 notes
|
500.0
|
|
504
|
|
|
500.0
|
|
508
|
|
|
2.700
|
%
|
2.819
|
%
|
||||
2023 notes
|
750.0
|
|
796
|
|
|
750.0
|
|
806
|
|
|
3.850
|
%
|
2.859
|
%
|
||||
2024 notes
(3)
|
755.3
|
|
762
|
|
|
755.3
|
|
760
|
|
|
0.372
|
%
|
0.462
|
%
|
||||
2026 notes
|
500.0
|
|
480
|
|
|
500.0
|
|
481
|
|
|
2.450
|
%
|
2.511
|
%
|
||||
2045 notes
|
350.0
|
|
387
|
|
|
350.0
|
|
381
|
|
|
4.300
|
%
|
4.348
|
%
|
||||
2047 notes
(2)
|
500.0
|
|
509
|
|
|
—
|
|
—
|
|
|
3.750
|
%
|
3.765
|
%
|
||||
Total
|
4,955.3
|
|
5,033
|
|
|
3,955.3
|
|
4,039
|
|
|
|
|
||||||
Aggregate debt issuance costs and unamortized premium, net
|
(26.1
|
)
|
|
|
(17.5
|
)
|
|
|
|
|
||||||||
Hedge accounting fair value adjustment
(4)
|
(12.8
|
)
|
|
|
(5.2
|
)
|
|
|
|
|
||||||||
Total
|
$
|
4,916.4
|
|
|
|
$
|
3,932.6
|
|
|
|
|
|
(1)
|
Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
|
(2)
|
Issued in
November 2017
.
|
(3)
|
Japanese yen-denominated long-term debt.
|
(4)
|
Amount represents the change in fair value due to changes in benchmark interest rates related to our 2023 notes. Refer to
Note 3
, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.
|
Fiscal Year
|
Total
|
||
2019
|
$
|
350.0
|
|
2020
|
—
|
|
|
2021
|
1,250.0
|
|
|
2022
|
500.0
|
|
|
2023
|
—
|
|
|
Thereafter
|
2,855.3
|
|
|
Total
|
$
|
4,955.3
|
|
Note 8:
|
Equity
|
|
Quarter Ended
|
||||||||||||||||||||||
|
Dec 31, 2017
|
|
Jan 1, 2017
|
||||||||||||||||||||
|
Attributable to Starbucks
|
|
Noncontrolling interests
|
|
Total Equity
|
|
Attributable to Starbucks
|
|
Noncontrolling interest
|
|
Total Equity
|
||||||||||||
Beginning balance of total equity
|
$
|
5,450.1
|
|
|
$
|
6.9
|
|
|
$
|
5,457.0
|
|
|
$
|
5,884.0
|
|
|
$
|
6.7
|
|
|
$
|
5,890.7
|
|
Net earnings including noncontrolling interests
|
2,250.2
|
|
|
(0.1
|
)
|
|
2,250.1
|
|
|
751.8
|
|
|
(0.3
|
)
|
|
751.5
|
|
||||||
Translation adjustment and other, net of reclassifications and tax
|
28.1
|
|
|
—
|
|
|
28.1
|
|
|
(171.8
|
)
|
|
—
|
|
|
(171.8
|
)
|
||||||
Unrealized gains/(losses), net of reclassifications and tax
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
37.9
|
|
|
—
|
|
|
37.9
|
|
||||||
Other comprehensive income/(loss)
|
30.3
|
|
|
—
|
|
|
30.3
|
|
|
(133.9
|
)
|
|
—
|
|
|
(133.9
|
)
|
||||||
Stock-based compensation expense
|
62.2
|
|
|
—
|
|
|
62.2
|
|
|
55.7
|
|
|
—
|
|
|
55.7
|
|
||||||
Exercise of stock options/vesting of RSUs
|
(9.1
|
)
|
|
—
|
|
|
(9.1
|
)
|
|
8.8
|
|
|
—
|
|
|
8.8
|
|
||||||
Sale of common stock
|
7.4
|
|
|
—
|
|
|
7.4
|
|
|
7.0
|
|
|
—
|
|
|
7.0
|
|
||||||
Repurchase of common stock
|
(1,618.2
|
)
|
|
—
|
|
|
(1,618.2
|
)
|
|
(413.7
|
)
|
|
—
|
|
|
(413.7
|
)
|
||||||
Cash dividends declared
|
(420.8
|
)
|
|
—
|
|
|
(420.8
|
)
|
|
(363.1
|
)
|
|
—
|
|
|
(363.1
|
)
|
||||||
Ending balance of total equity
|
$
|
5,752.1
|
|
|
$
|
6.8
|
|
|
$
|
5,758.9
|
|
|
$
|
5,796.6
|
|
|
$
|
6.5
|
|
|
$
|
5,803.1
|
|
|
Available-for-Sale Securities
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Translation Adjustment and Other
|
|
Total
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
(1.8
|
)
|
|
(2.9
|
)
|
|
(0.2
|
)
|
|
20.9
|
|
|
16.0
|
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
1.3
|
|
|
5.9
|
|
|
(0.1
|
)
|
|
7.2
|
|
|
14.3
|
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(0.5
|
)
|
|
3.0
|
|
|
(0.3
|
)
|
|
28.1
|
|
|
30.3
|
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(3.0
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
13.7
|
|
|
$
|
(134.9
|
)
|
|
$
|
(125.3
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
January 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
|
(9.3
|
)
|
|
87.0
|
|
|
25.9
|
|
|
(171.8
|
)
|
|
(68.2
|
)
|
|||||
Net (gains)/losses reclassified from AOCI to earnings
|
0.6
|
|
|
(66.3
|
)
|
|
—
|
|
|
—
|
|
|
(65.7
|
)
|
|||||
Other comprehensive income/(loss) attributable to Starbucks
|
(8.7
|
)
|
|
20.7
|
|
|
25.9
|
|
|
(171.8
|
)
|
|
(133.9
|
)
|
|||||
Net gains/(losses) in AOCI, end of period
|
$
|
(7.6
|
)
|
|
$
|
31.6
|
|
|
$
|
27.2
|
|
|
$
|
(293.5
|
)
|
|
$
|
(242.3
|
)
|
AOCI
Components
|
|
Amounts Reclassified from AOCI
|
|
Affected Line Item in
the Statements of Earnings
|
||||||
|
Dec 31, 2017
|
|
Jan 1, 2017
|
|
||||||
Gains/(losses) on available-for-sale securities
|
|
$
|
(1.7
|
)
|
|
$
|
(0.8
|
)
|
|
Interest income and other, net
|
Gains/(losses) on cash flow hedges
|
|
|
|
|
|
|
||||
Interest rate hedges
|
|
1.2
|
|
|
1.2
|
|
|
Interest expense
|
||
Cross-currency swaps
|
|
(0.5
|
)
|
|
77.6
|
|
|
Interest income and other, net
|
||
Foreign currency hedges
|
|
(0.4
|
)
|
|
1.3
|
|
|
Revenues
|
||
Foreign currency/coffee hedges
|
|
(7.1
|
)
|
|
2.4
|
|
|
Cost of sales including occupancy costs
|
||
Gains/(losses) on net investment hedges
|
|
0.1
|
|
|
—
|
|
|
Interest income and other, net
|
||
Translation adjustment
|
|
|
|
|
|
|
||||
East China joint venture
|
|
(7.2
|
)
|
|
—
|
|
|
Gain resulting from acquisition of joint venture
|
||
Taiwan joint venture
|
|
(1.4
|
)
|
|
—
|
|
|
Gains resulting from divestiture of certain operations
|
||
Other
|
|
1.9
|
|
|
—
|
|
|
Interest income and other, net
|
||
|
|
(15.1
|
)
|
|
81.7
|
|
|
Total before tax
|
||
|
|
0.8
|
|
|
(16.0
|
)
|
|
Tax benefit
|
||
|
|
$
|
(14.3
|
)
|
|
$
|
65.7
|
|
|
Net of tax
|
Note 9:
|
Employee Stock Plans
|
|
Quarter Ended
|
||||||
|
Dec 31, 2017
|
|
Jan 1, 2017
|
||||
Options
|
$
|
14.2
|
|
|
$
|
14.9
|
|
Restricted Stock Units (“RSUs”)
|
47.2
|
|
|
40.1
|
|
||
Total stock-based compensation expense
|
$
|
61.4
|
|
|
$
|
55.0
|
|
|
Stock Options
|
|
RSUs
|
||||
Options outstanding/Nonvested RSUs, October 1, 2017
|
31.4
|
|
|
7.6
|
|
||
Granted
|
3.6
|
|
|
5.8
|
|
||
Options exercised/RSUs vested
|
(2.5
|
)
|
|
(2.8
|
)
|
||
Forfeited/expired
|
(0.3
|
)
|
|
(0.3
|
)
|
||
Options outstanding/Nonvested RSUs, December 31, 2017
|
32.2
|
|
|
10.3
|
|
||
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of December 31, 2017
|
$
|
49.8
|
|
|
$
|
279.9
|
|
Note 10:
|
Income Taxes
|
Note 11:
|
Earnings per Share
|
|
Quarter Ended
|
||||||
|
Dec 31, 2017
|
|
Jan 1, 2017
|
||||
Net earnings attributable to Starbucks
|
$
|
2,250.2
|
|
|
$
|
751.8
|
|
Weighted average common shares outstanding (for basic calculation)
|
1,421.0
|
|
|
1,457.5
|
|
||
Dilutive effect of outstanding common stock options and RSUs
|
13.6
|
|
|
13.0
|
|
||
Weighted average common and common equivalent shares outstanding (for diluted calculation)
|
1,434.6
|
|
|
1,470.5
|
|
||
EPS — basic
|
$
|
1.58
|
|
|
$
|
0.52
|
|
EPS — diluted
|
$
|
1.57
|
|
|
$
|
0.51
|
|
Note 12:
|
Segment Reporting
|
|
Americas
|
|
China/
Asia Pacific
|
|
EMEA
|
|
Channel
Development
|
|
All Other Segments
|
|
Segment
Total
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
4,265.8
|
|
|
$
|
843.7
|
|
|
$
|
283.9
|
|
|
$
|
560.3
|
|
|
$
|
120.0
|
|
|
$
|
6,073.7
|
|
Depreciation and amortization expenses
|
158.0
|
|
|
53.7
|
|
|
7.7
|
|
|
0.5
|
|
|
0.7
|
|
|
220.6
|
|
||||||
Income from equity investees
|
—
|
|
|
50.7
|
|
|
—
|
|
|
38.7
|
|
|
—
|
|
|
89.4
|
|
||||||
Operating income/(loss)
|
979.4
|
|
|
196.8
|
|
|
39.1
|
|
|
243.3
|
|
|
(30.0
|
)
|
|
1,428.6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
January 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenues
|
$
|
3,991.4
|
|
|
$
|
770.8
|
|
|
$
|
262.4
|
|
|
$
|
553.7
|
|
|
$
|
154.6
|
|
|
$
|
5,732.9
|
|
Depreciation and amortization expenses
|
152.4
|
|
|
48.6
|
|
|
7.6
|
|
|
0.6
|
|
|
2.9
|
|
|
212.1
|
|
||||||
Income from equity investees
|
—
|
|
|
42.5
|
|
|
—
|
|
|
41.9
|
|
|
—
|
|
|
84.4
|
|
||||||
Operating income/(loss)
|
958.5
|
|
|
163.4
|
|
|
44.1
|
|
|
242.9
|
|
|
9.6
|
|
|
1,418.5
|
|
|
Quarter Ended
|
||||||
|
Dec 31, 2017
|
|
Jan 1, 2017
|
||||
Total segment operating income
|
$
|
1,428.6
|
|
|
$
|
1,418.5
|
|
Unallocated corporate operating expenses
|
(312.5
|
)
|
|
(285.9
|
)
|
||
Consolidated operating income
|
1,116.1
|
|
|
1,132.6
|
|
||
Gain resulting from acquisition of joint venture
|
1,326.3
|
|
|
—
|
|
||
Gains resulting from divestiture of certain operations
|
501.2
|
|
|
—
|
|
||
Interest income and other, net
|
88.2
|
|
|
24.1
|
|
||
Interest expense
|
(25.9
|
)
|
|
(23.8
|
)
|
||
Earnings before income taxes
|
$
|
3,005.9
|
|
|
$
|
1,132.9
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Quarter Ended
|
|||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
%
Change
|
|||||
Company-operated stores
|
$
|
4,741.8
|
|
|
$
|
4,469.3
|
|
|
6.1
|
%
|
Licensed stores
|
682.4
|
|
|
602.4
|
|
|
13.3
|
|
||
CPG, foodservice and other
|
649.5
|
|
|
661.2
|
|
|
(1.8
|
)
|
||
Total net revenues
|
$
|
6,073.7
|
|
|
$
|
5,732.9
|
|
|
5.9
|
%
|
|
Quarter Ended
|
||||||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Cost of sales including occupancy costs
|
$
|
2,502.9
|
|
|
$
|
2,295.0
|
|
|
41.2
|
%
|
|
40.0
|
%
|
Store operating expenses
|
1,737.0
|
|
|
1,638.2
|
|
|
28.6
|
|
|
28.6
|
|
||
Other operating expenses
|
141.6
|
|
|
145.4
|
|
|
2.3
|
|
|
2.5
|
|
||
Depreciation and amortization expenses
|
258.8
|
|
|
249.7
|
|
|
4.3
|
|
|
4.4
|
|
||
General and administrative expenses
|
379.1
|
|
|
356.4
|
|
|
6.2
|
|
|
6.2
|
|
||
Restructuring expenses
|
27.6
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||
Total operating expenses
|
5,047.0
|
|
|
4,684.7
|
|
|
83.1
|
|
|
81.7
|
|
||
Income from equity investees
|
89.4
|
|
|
84.4
|
|
|
1.5
|
|
|
1.5
|
|
||
Operating income
|
$
|
1,116.1
|
|
|
$
|
1,132.6
|
|
|
18.4
|
%
|
|
19.8
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
36.6
|
%
|
|
36.7
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
10.6
|
%
|
|
11.5
|
%
|
|
Quarter Ended
|
||||||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||||
|
|
|
|
|
As a % of Total
Net Revenues
|
||||||||
Operating income
|
$
|
1,116.1
|
|
|
$
|
1,132.6
|
|
|
18.4
|
%
|
|
19.8
|
%
|
Gain resulting from acquisition of joint venture
|
1,326.3
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
||
Gains resulting from divestiture of certain operations
|
501.2
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
||
Interest income and other, net
|
88.2
|
|
|
24.1
|
|
|
1.5
|
|
|
0.4
|
|
||
Interest expense
|
(25.9
|
)
|
|
(23.8
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||
Earnings before income taxes
|
3,005.9
|
|
|
1,132.9
|
|
|
49.5
|
|
|
19.8
|
|
||
Income tax expense
|
755.8
|
|
|
381.4
|
|
|
12.4
|
|
|
6.7
|
|
||
Net earnings including noncontrolling interests
|
2,250.1
|
|
|
751.5
|
|
|
37.0
|
|
|
13.1
|
|
||
Net earnings/(loss) attributable to noncontrolling interests
|
(0.1
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Starbucks
|
$
|
2,250.2
|
|
|
$
|
751.8
|
|
|
37.0
|
%
|
|
13.1
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
25.1
|
%
|
|
33.7
|
%
|
|
Quarter Ended
|
||||||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||||
|
|
|
|
|
As a % of Americas
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
3,787.0
|
|
|
$
|
3,561.0
|
|
|
88.8
|
%
|
|
89.2
|
%
|
Licensed stores
|
466.7
|
|
|
421.3
|
|
|
10.9
|
|
|
10.6
|
|
||
Foodservice and other
|
12.1
|
|
|
9.1
|
|
|
0.3
|
|
|
0.2
|
|
||
Total net revenues
|
4,265.8
|
|
|
3,991.4
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
1,603.8
|
|
|
1,440.3
|
|
|
37.6
|
|
|
36.1
|
|
||
Store operating expenses
|
1,433.4
|
|
|
1,356.3
|
|
|
33.6
|
|
|
34.0
|
|
||
Other operating expenses
|
37.5
|
|
|
31.9
|
|
|
0.9
|
|
|
0.8
|
|
||
Depreciation and amortization expenses
|
158.0
|
|
|
152.4
|
|
|
3.7
|
|
|
3.8
|
|
||
General and administrative expenses
|
52.1
|
|
|
52.0
|
|
|
1.2
|
|
|
1.3
|
|
||
Restructuring expenses
|
1.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total operating expenses
|
3,286.4
|
|
|
3,032.9
|
|
|
77.0
|
|
|
76.0
|
|
||
Operating income
|
$
|
979.4
|
|
|
$
|
958.5
|
|
|
23.0
|
%
|
|
24.0
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
37.9
|
%
|
|
38.1
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
7.8
|
%
|
|
7.4
|
%
|
|
Quarter Ended
|
||||||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||||
|
|
|
|
|
As a % of CAP
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
742.5
|
|
|
$
|
691.5
|
|
|
88.0
|
%
|
|
89.7
|
%
|
Licensed stores
|
98.4
|
|
|
78.0
|
|
|
11.7
|
|
|
10.1
|
|
||
Foodservice and other
|
2.8
|
|
|
1.3
|
|
|
0.3
|
|
|
0.2
|
|
||
Total net revenues
|
843.7
|
|
|
770.8
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
371.7
|
|
|
337.3
|
|
|
44.1
|
|
|
43.8
|
|
||
Store operating expenses
|
218.6
|
|
|
204.3
|
|
|
25.9
|
|
|
26.5
|
|
||
Other operating expenses
|
21.2
|
|
|
19.1
|
|
|
2.5
|
|
|
2.5
|
|
||
Depreciation and amortization expenses
|
53.7
|
|
|
48.6
|
|
|
6.4
|
|
|
6.3
|
|
||
General and administrative expenses
|
32.4
|
|
|
40.6
|
|
|
3.8
|
|
|
5.3
|
|
||
Total operating expenses
|
697.6
|
|
|
649.9
|
|
|
82.7
|
|
|
84.3
|
|
||
Income from equity investees
|
50.7
|
|
|
42.5
|
|
|
6.0
|
|
|
5.5
|
|
||
Operating income
|
$
|
196.8
|
|
|
$
|
163.4
|
|
|
23.3
|
%
|
|
21.2
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
29.4
|
%
|
|
29.5
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
20.9
|
%
|
|
24.1
|
%
|
|
Quarter Ended
|
||||||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||||
|
|
|
|
|
As a % of EMEA
Total Net Revenues
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
$
|
151.6
|
|
|
$
|
145.9
|
|
|
53.4
|
%
|
|
55.6
|
%
|
Licensed stores
|
116.2
|
|
|
102.2
|
|
|
40.9
|
|
|
38.9
|
|
||
Foodservice
|
16.1
|
|
|
14.3
|
|
|
5.7
|
|
|
5.4
|
|
||
Total net revenues
|
283.9
|
|
|
262.4
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales including occupancy costs
|
152.1
|
|
|
136.1
|
|
|
53.6
|
|
|
51.9
|
|
||
Store operating expenses
|
54.7
|
|
|
46.9
|
|
|
19.3
|
|
|
17.9
|
|
||
Other operating expenses
|
16.3
|
|
|
16.0
|
|
|
5.7
|
|
|
6.1
|
|
||
Depreciation and amortization expenses
|
7.7
|
|
|
7.6
|
|
|
2.7
|
|
|
2.9
|
|
||
General and administrative expenses
|
14.0
|
|
|
11.7
|
|
|
4.9
|
|
|
4.5
|
|
||
Total operating expenses
|
244.8
|
|
|
218.3
|
|
|
86.2
|
|
|
83.2
|
|
||
Operating income
|
$
|
39.1
|
|
|
$
|
44.1
|
|
|
13.8
|
%
|
|
16.8
|
%
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
36.1
|
%
|
|
32.1
|
%
|
||||
Other operating expenses as a % of non-company-operated store revenues
|
|
|
|
|
12.3
|
%
|
|
13.7
|
%
|
|
Quarter Ended
|
||||||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||||
|
|
|
|
|
As a % of Channel Development
Total Net Revenues |
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||
CPG
|
$
|
435.8
|
|
|
$
|
437.1
|
|
|
77.8
|
%
|
|
78.9
|
%
|
Foodservice
|
124.5
|
|
|
116.6
|
|
|
22.2
|
|
|
21.1
|
|
||
Total net revenues
|
560.3
|
|
|
553.7
|
|
|
100.0
|
|
|
100.0
|
|
||
Cost of sales
|
296.3
|
|
|
288.5
|
|
|
52.9
|
|
|
52.1
|
|
||
Other operating expenses
|
55.6
|
|
|
60.4
|
|
|
9.9
|
|
|
10.9
|
|
||
Depreciation and amortization expenses
|
0.5
|
|
|
0.6
|
|
|
0.1
|
|
|
0.1
|
|
||
General and administrative expenses
|
3.3
|
|
|
3.2
|
|
|
0.6
|
|
|
0.6
|
|
||
Total operating expenses
|
355.7
|
|
|
352.7
|
|
|
63.5
|
|
|
63.7
|
|
||
Income from equity investees
|
38.7
|
|
|
41.9
|
|
|
6.9
|
|
|
7.6
|
|
||
Operating income
|
$
|
243.3
|
|
|
$
|
242.9
|
|
|
43.4
|
%
|
|
43.9
|
%
|
|
Quarter Ended
|
|||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
%
Change
|
|||||
Net revenues:
|
|
|
|
|
|
|||||
Company-operated stores
|
$
|
60.7
|
|
|
$
|
70.9
|
|
|
(14.4
|
)%
|
Licensed stores
|
1.1
|
|
|
0.9
|
|
|
22.2
|
|
||
CPG, foodservice and other
|
58.2
|
|
|
82.8
|
|
|
(29.7
|
)
|
||
Total net revenues
|
120.0
|
|
|
154.6
|
|
|
(22.4
|
)
|
||
Cost of sales including occupancy costs
|
79.1
|
|
|
90.4
|
|
|
(12.5
|
)
|
||
Store operating expenses
|
30.3
|
|
|
30.7
|
|
|
(1.3
|
)
|
||
Other operating expenses
|
11.2
|
|
|
17.5
|
|
|
(36.0
|
)
|
||
Depreciation and amortization expenses
|
0.7
|
|
|
2.9
|
|
|
(75.9
|
)
|
||
General and administrative expenses
|
2.7
|
|
|
3.5
|
|
|
(22.9
|
)
|
||
Restructuring expenses
|
26.0
|
|
|
—
|
|
|
nm
|
|
||
Total operating expenses
|
150.0
|
|
|
145.0
|
|
|
3.4
|
|
||
Operating income/ (loss)
|
$
|
(30.0
|
)
|
|
$
|
9.6
|
|
|
nm
|
|
|
Net stores opened/(closed) and
transferred during the period
|
|
|
|
|
||||||
|
Quarter Ended
|
|
Stores open as of
|
||||||||
|
Dec 31,
2017 |
|
Jan 1,
2017 |
|
Dec 31,
2017 |
|
Jan 1,
2017 |
||||
Americas
|
|
|
|
|
|
|
|
||||
Company-operated stores
|
112
|
|
|
75
|
|
|
9,525
|
|
|
9,094
|
|
Licensed stores
|
166
|
|
|
176
|
|
|
7,312
|
|
|
6,764
|
|
Total Americas
|
278
|
|
|
251
|
|
|
16,837
|
|
|
15,858
|
|
China/Asia Pacific
(1)
|
|
|
|
|
|
|
|
||||
Company-operated stores
|
1,612
|
|
|
104
|
|
|
4,682
|
|
|
2,915
|
|
Licensed stores
|
(1,312
|
)
|
|
199
|
|
|
3,097
|
|
|
3,831
|
|
Total China/Asia Pacific
|
300
|
|
|
303
|
|
|
7,779
|
|
|
6,746
|
|
EMEA
|
|
|
|
|
|
|
|
||||
Company-operated stores
|
1
|
|
|
(18
|
)
|
|
503
|
|
|
505
|
|
Licensed stores
|
122
|
|
|
113
|
|
|
2,594
|
|
|
2,232
|
|
Total EMEA
|
123
|
|
|
95
|
|
|
3,097
|
|
|
2,737
|
|
All Other Segments
(2)
|
|
|
|
|
|
|
|
||||
Company-operated stores
|
(1
|
)
|
|
(2
|
)
|
|
289
|
|
|
356
|
|
Licensed stores
|
—
|
|
|
2
|
|
|
37
|
|
|
37
|
|
Total All Other Segments
|
(1
|
)
|
|
—
|
|
|
326
|
|
|
393
|
|
Total Company
|
700
|
|
|
649
|
|
|
28,039
|
|
|
25,734
|
|
(1)
China/Asia Pacific 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.
|
|||||||||||
(2)
As of December 31, 2017, All Other Segments included 323 Teavana-branded stores, of which 286 stores were company-operated.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
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 |
|||||
Period
(1)
|
|
|
|
|
|
|
|
|
|||||
October 2, 2017 — October 29, 2017
|
|
4,853,039
|
|
|
$
|
54.58
|
|
|
4,853,039
|
|
|
75,464,372
|
|
October 30, 2017 — November 26, 2017
|
|
11,661,314
|
|
|
56.82
|
|
|
11,661,314
|
|
|
63,803,058
|
|
|
November 27, 2017 — December 31, 2017
|
|
11,959,889
|
|
|
57.75
|
|
|
11,959,889
|
|
|
51,843,169
|
|
|
Total
|
|
28,474,242
|
|
|
$
|
56.83
|
|
|
28,474,242
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal months during the
first
quarter of fiscal
2018
.
|
(2)
|
Share repurchases are conducted under our ongoing share repurchase program announced in September 2001, which has no expiration date.
|
Item 6.
|
Exhibits
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||||||
Exhibit
No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Date of
Filing
|
|
Exhibit Number
|
|
Filed
Herewith
|
|||||
|
|
10-Q
|
|
0-20322
|
|
4/28/2015
|
|
3.1
|
|
|
|||||||
|
|
8-K
|
|
0-20322
|
|
9/16/2016
|
|
3.1
|
|
|
|||||||
|
|
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
|
|
10/30/2017
|
|
10.1
|
|
|
|||||||
|
|
8-K
|
|
0-20322
|
|
10/30/2017
|
|
10.2
|
|
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|||||||
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||||
101
|
|
The following financial statements from the Company's 10-Q for the fiscal quarter ended December 31, 2017, formatted in XBRL: (i) Condensed Consolidated Statements of Earnings, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements
|
|
—
|
|
—
|
|
—
|
|
—
|
|
X
|
|
STARBUCKS CORPORATION
|
||
|
|
|
|
|
By:
|
|
/s/ Scott Maw
|
|
|
|
Scott Maw
|
|
|
|
executive vice president, chief financial officer
|
|
|
|
Signing on behalf of the registrant and as
principal financial officer
|
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