Starbucks 2004 Annual Report Download - page 30

Fiscal 2004 Annual Report 41
Note 20: Quarterly Financial Information (unaudited)
Summarized quarterly fi nancial information in fi scal 2004 and 2003 is as follows (in thousands, except earnings per share):
First Second Third Fourth
2004 quarter:
Net revenues $ 1,281,191 $ 1,241,068 $ 1,318,691 $ 1,453,297
Operating income 175,520 124,521 153,807 156,269
Net earnings 110,811 79,488 98,104 103,372
Net earnings per common share – diluted $ 0.27 $ 0.19 $ 0.24 $ 0.25
2003 quarter:
Net revenues $ 1,003,526 $ 954,206 $ 1,036,776 $ 1,081,014
Operating income 120,834 85,494 106,019 112,366
Net earnings 78,363 52,031 68,356 69,596
Net earnings per common share – diluted $ 0.20 $ 0.13 $ 0.17 $ 0.17
MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING
The management of Starbucks Corporation is responsible for the preparation and integrity of the fi nancial statements included in
this Annual Report to Shareholders. The fi nancial 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 fi nancial 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. 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 ratifi ed by
the Company’s shareholders to audit the fi nancial 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 fi nancial position, results of operations and cash
fl ows. Their report appears in this Annual Report.
The Audit and Compliance Committee, all of whose members are independent 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 fi nancial reporting matters as well as to ensure that each group 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 fi nancial reporting.
ORIN C. SMITH MICHAEL CASEY
president and executive vice president,
chief executive offi cer chief fi nancial offi cer and chief administrative offi cer
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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
October 3, 2004, and September 28, 2003, and the related consolidated statements of earnings, shareholders’ equity and cash fl ows
for the years ended October 3, 2004, September 28, 2003, and September 29, 2002. These fi nancial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on these fi nancial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as
well as evaluating the overall fi nancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated fi nancial statements present fairly, in all material respects, the fi nancial position of the Company as
of October 3, 2004, and September 28, 2003, and the results of its operations and its cash fl ows for the years ended October 3, 2004,
September 28, 2003, and September 29, 2002, in conformity with accounting principles generally accepted in the United States
of America.
DELOITTE & TOUCHE LLP
Seattle, Washington
December 7, 2004