Starbucks 2001 Annual Report Download - page 25

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Fiscal 2001 Annual Report 41
Note 12: Shareholders’ Equity
On December 15, 2000, the Company amended and restated its Articles of Incorporation to, among
other things, change the par value of the Company’s common stock and preferred stock from no par
value per share to $0.001 par value per share.
In addition to 600.0 million shares of authorized common stock, the Company has authorized 7.5
million shares of preferred stock, none of which was outstanding at September 30, 2001.
On September 16, 2001, the Board of Directors authorized a share repurchase program to acquire up
to $60.0 million of the Company’s outstanding common stock on the open market.As of September
30, 2001, the Company repurchased 3.4 million shares at a cost of $49.8 million.
COMPREHENSIVE INCOME
Comprehensive income includes all changes in equity during the period, except those resulting from
transactions with shareholders of the Company. It has two components: net earnings and other
comprehensive income. Accumulated other comprehensive loss reported on the Company’s
consolidated balance sheets consists of foreign currency translation adjustments and the unrealized
gains and losses, net of applicable taxes, on available-for-sale securities and on derivative instruments
designated and qualifying as cash flow and net investment hedges. Comprehensive income, net of
related tax effects, is as follows (in thousands):
Fiscal year ended Sept 30, 2001 Oct 1, 2000 Oct 3, 1999
Net earnings $ 181,210 $ 94,564 $ 101,693
Unrealized holding gains/(losses) on available-for-sale
investments, net of tax benefit/ (provision) of ($434),
$52 and ($155) in 2001, 2000 and 1999, respectively 738 (85) 252
Unrealized holding gains on cash flow hedges,
net of tax provision of $683 1,163 - -
Unrealized holding gains on net investment hedge,
net of tax provision of $109 186 - -
Reclassification adjustment for (gains)/ losses realized in
net income, net of tax (benefit)/ provision of $0, ($48)
and $270 in 2001, 2000 and 1999, respectively - (78) 431
Net unrealized gain/ (loss) 2,087 (163) 683
Translation adjustment 3,481 (6,867) 2,534
Total comprehensive income $ 186,778 $ 87,534 $ 104,910