Starbucks 2001 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2001 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 36

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36

Note 9: Property, Plant and Equipment
Property, plant and equipment are recorded at cost and consist of the following (in thousands):
Sept 30, 2001 Oct 1, 2000
Land $6,023 $ 5,084
Building 19,795 19,795
Leasehold improvements 960,732 754,132
Roasting and store equipment 421,150 354,806
Furniture, fixtures and other 239,900 181,702
1,647,600 1,315,519
Less accumulated depreciation and amortization (605,247) (446,403)
1,042,353 869,116
Work in progress 93,431 61,643
Property, plant and equipment, net $ 1,135,784 $ 930,759
Note 10: Long-term Debt
In September 1999, the Company purchased the land and building comprising its York County,
Pennsylvania, roasting plant and distribution facility. The total purchase price was $12.9 million. In
connection with this purchase, the Company assumed loans totaling $7.7 million from the York
County Industrial Development Corporation. The remaining maturities of these loans range from
8to 9 years, with interest rates from 0.0% to 2.0%.
Scheduled principal payments on long-term debt are as follows (in thousands):
Fiscal year ending
2002 $ 697
2003 710
2004 722
2005 735
2006 748
Thereafter 2,871
Total principal payments $6,483
Note 11: Leases
The Company leases retail stores, roasting and distribution facilities and office space under operating
leases expiring through 2025. Most lease agreements contain renewal options and rent escalation
clauses. Certain leases provide for contingent rentals based upon gross sales.
Rental expense under these lease agreements was as follows (in thousands):
Fiscal year ended Sept 30, 2001 Oct 1, 2000 Oct 3, 1999
Minimum rentals $ 166,543 $ 127,149 $ 95,613
Contingent rentals 4,018 3,743 1,581
Total $ 170,561 $ 130,892 $ 97,194
Minimum future rental payments under non-cancelable lease obligations as of September 30,2001 are
as follows (in thousands):
Fiscal year ending
2002 $ 185,709
2003 185,666
2004 179,957
2005 169,427
2006 159,333
Thereafter 774,560
Total minimum lease payments $ 1,654,652