Starbucks 2003 Annual Report Download - page 25

36฀ Fiscal฀2003฀Annual฀Report
Fiscal฀2003฀Annual฀Report฀ 37
MANAGEMENT’S฀RESPONSIBILITY฀FOR฀FINANCIAL฀REPORTING
The฀ management฀of฀Starbucks฀ Corporation฀is฀ responsible฀ for฀the฀preparation฀and฀ integrity฀ of฀ the฀ financial฀statements฀
included฀ in฀ this฀ Annual฀ Report฀ to฀ Shareholders.฀ The฀ financial฀ statements฀ have฀ been฀ prepared฀ in฀ conformity฀ with฀
accounting฀principles฀generally฀accepted฀in฀the฀United฀States฀of฀America฀and฀include฀amounts฀based฀on฀management’s฀
best฀ estimates฀ and฀ judgments฀ where฀ necessary.฀ Financial฀ information฀ included฀ elsewhere฀ in฀ this฀ Annual฀ Report฀ is฀
consistent฀with฀these฀f inancial฀statements.฀
Management฀maintains฀a฀system฀of฀internal฀controls฀and฀procedures฀designed฀to฀provide฀reasonable฀assurance฀that฀transactions฀
are฀executed฀in฀accordance฀with฀proper฀authorization,฀transactions฀are฀properly฀recorded฀in฀the฀Company’s฀records,฀assets฀
are฀safeguarded,฀and฀accountability฀for฀assets฀is฀maintained.฀The฀concept฀of฀reasonable฀assurance฀is฀based฀on฀the฀recognition฀
that฀the฀cost฀of฀maintaining฀the฀system฀of฀internal฀accounting฀controls฀should฀not฀exceed฀benefits฀expected฀to฀be฀derived฀
from฀the฀system.฀Internal฀controls฀and฀procedures฀are฀periodically฀reviewed฀and฀revised,฀when฀appropriate,฀due฀to฀changing฀
circumstances฀and฀requirements.฀In฀addition,฀the฀Company’s฀internal฀audit฀department฀assesses฀the฀effectiveness฀and฀adequacy฀
of฀internal฀controls฀on฀a฀regular฀basis฀and฀recommends฀improvements฀when฀appropriate.฀Management฀considers฀the฀internal฀
auditors’฀ and฀ independent฀ auditors’฀ recommendations฀ concerning฀ the฀ Company’s฀ internal฀ controls฀ and฀ takes฀ steps฀ to฀
implement฀those฀that฀are฀believed฀to฀be฀appropriate฀in฀the฀circumstances.฀
Independent฀ auditors฀ are฀ appointed฀ by฀ the฀ Company’s฀ Audit฀ and฀ Compliance฀ Committee฀ of฀ the฀ Board฀ of฀ Directors฀ and฀
ratified฀ by฀ the฀ Company’s฀ shareholders฀ to฀ audit฀ the฀ financial฀ statements฀ in฀ accordance฀ with฀ auditing฀ standards฀ generally฀
accepted฀in฀the฀United฀States฀of฀America฀and฀to฀independently฀assess฀the฀fair฀presentation฀of฀the฀Company’s฀financial฀position,฀
results฀of฀operations฀and฀cash฀f lows.฀Their฀report฀appears฀in฀this฀Annual฀Report.฀
The฀ Audit฀ and฀ Compliance฀ Committee,฀ all฀ of฀ whose฀ members฀ are฀ outside฀ directors,฀ is฀ responsible฀ for฀ monitoring฀ the฀
Company’s฀accounting฀and฀reporting฀practices.฀The฀Audit฀and฀Compliance฀Committee฀meets฀periodically฀with฀management,฀
the฀ independent฀auditors฀and฀the฀internal฀auditors,฀ jointly฀ and฀separately,฀ to฀review฀ financial฀ reporting฀matters฀ as฀well฀as฀
to฀ensure฀that฀each฀is฀properly฀discharging฀its฀responsibilities.฀The฀independent฀auditors฀and฀the฀internal฀auditors฀have฀full฀
and฀free฀access฀to฀the฀Committee฀without฀the฀presence฀of฀management฀to฀discuss฀the฀results฀of฀their฀audits,฀the฀adequacy฀of฀
internal฀accounting฀controls฀and฀the฀quality฀of฀financial฀reporting.฀
Orin฀C.฀Smith฀ Michael฀Casey
president฀and฀฀ executive฀vice฀president,฀
chief฀executive฀officer฀ chief฀financial฀officer฀and฀chief฀administrative฀officer
INDEPENDENT฀AUDITORS’฀REPORT
To฀the฀Board฀of฀Directors฀and฀Shareholders฀of฀Starbucks฀Corporation
Seattle,฀Washington
We฀have฀audited฀the฀accompanying฀consolidated฀balance฀sheets฀of฀Starbucks฀Corporation฀and฀subsidiaries฀(the฀“Company”)฀
as฀of฀September฀28,฀2003,฀and฀September฀29,฀2002,฀and฀the฀related฀consolidated฀statements฀of฀earnings,฀shareholders’฀equity฀
and฀ cash฀ f lows฀ for฀ the฀ years฀ ended฀ September฀ 28,฀ 2003,฀ September฀ 29,฀ 2002฀ and฀ September฀ 30,฀ 2001.฀ These฀ financial฀
statements฀are฀the฀responsibility฀of฀the฀Company’s฀management.฀Our฀responsibility฀is฀to฀express฀an฀opinion฀on฀these฀financial฀
statements฀based฀on฀our฀audits.฀
We฀conducted฀our฀audits฀in฀accordance฀with฀auditing฀standards฀generally฀accepted฀in฀the฀United฀States฀of฀America.฀Those฀
standards฀require฀that฀we฀plan฀and฀perform฀the฀audit฀to฀obtain฀reasonable฀assurance฀about฀whether฀the฀financial฀statements฀are฀
free฀of฀material฀misstatement.฀An฀audit฀includes฀examining,฀on฀a฀test฀basis,฀evidence฀supporting฀the฀amounts฀and฀disclosures฀
in฀the฀financial฀statements.฀An฀audit฀also฀includes฀assessing฀the฀accounting฀principles฀used฀and฀significant฀estimates฀made฀by฀
management,฀as฀well฀as฀evaluating฀the฀overall฀financial฀statement฀presentation.฀We฀believe฀that฀our฀audits฀provide฀a฀reasonable฀
basis฀for฀our฀opinion.฀
In฀ our฀opinion,฀such฀consolidated฀financial฀ statements฀present฀fairly,฀in฀ all฀material฀ respects,฀ the฀financial฀ position฀of฀ the฀
Company฀as฀of฀September฀28,฀2003,฀and฀September฀29,฀2002,฀and฀the฀results฀of฀its฀operations฀and฀its฀cash฀f lows฀for฀the฀years฀
ended฀September฀28,฀2003,฀September฀29,฀2002,฀and฀September฀30,฀2001,฀in฀conformity฀with฀accounting฀principles฀generally฀
accepted฀in฀the฀United฀States฀of฀America.฀
Deloitte฀&฀Touche฀LLP
Seattle,฀Washington
December฀19,฀2003