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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-K
¥ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended October 2, 2005
OR
nTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
Commission File Number: 0-20322
Starbucks Corporation
(Exact name of registrant as specified in its charter)
Washington 91-1325671
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
2401 Utah Avenue South 98134
(Zip Code)
Seattle, Washington 98134
(Address of principal executive offices)
(Registrant's telephone number, including area code): (206) 447-1575
Securities Registered Pursuant to Section 12(b) of the Act: None
Securities Registered Pursuant to Section 12(g) of the Act:
Common Stock, $0.001 Par Value Per Share
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes ¥No n
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes nNo ¥
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ¥No n
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation of S-K is not contained herein,
and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. n
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange
Act): Yes ¥No n
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes nNo ¥
The aggregate market value of the voting stock held by non-affiliates of the registrant as of the last business day of the
registrant's most recently completed second fiscal quarter, based upon the closing sale price of the registrant's common
stock on April 1, 2005 as reported on the National Market tier of The NASDAQ Stock Market, Inc. was $19,997,624,194.
As of December 14, 2005, there were 764,103,540 shares of the registrant's Common Stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement for the registrant's Annual Meeting of Shareholders to be held on February 8,
2006 have been incorporated by reference into Part III of this Annual Report on Form 10-K.

Table of contents

  • Page 1
    ... year ended October 2, 2005 OR n TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 0-20322 Starbucks Corporation (Exact name of registrant as specified in its charter) Washington (State or other...

  • Page 2
    ... Controls and Procedures Other Information PART III Directors and Executive Officers of the Registrant Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters Certain Relationships and Related Transactions Principal Accountant Fees...

  • Page 3
    ... products and the development of new channels of distribution. Segment Financial Information Starbucks has two operating segments, United States and International, each of which includes Companyoperated retail stores and Specialty Operations. Information about Starbucks total net revenues, earnings...

  • Page 4
    ... the Fiscal Year Ended Oct 2, 2005 Oct 3, 2004 (52 Wks) (53 Wks) Stores Open as of Oct 2, 2005 Oct 3, 2004 United States International: United Kingdom Canada Thailand Australia Germany(1 Singapore China(1 Chile(1 Ireland Total International Total Company-operated (1) 574 45 62 14 14...

  • Page 5
    ...-depth market knowledge and access. As part of these arrangements, Starbucks receives license fees and royalties and sells coffee, tea, CDs and related products for resale in licensed locations. Employees working in licensed retail locations are required to follow Starbucks detailed store operating...

  • Page 6
    ... a licensing relationship with Kraft Foods Inc. (""Kraft''). Kraft manages all distribution, marketing, advertising and promotion. In International markets, Starbucks also has licensing arrangements with other grocery and warehouse club stores. By the end of fiscal 2005, the Company's coffees and...

  • Page 7
    ... a credit card with the convenience of a reloadable Starbucks Card. Additionally, the website contains information about the Company's coffee products, brewing equipment and store locations. Collectively, the operations of these other initiatives accounted for 3% of specialty revenues in fiscal 2005...

  • Page 8
    ...products to support the needs of its Company-operated retail stores. Fluid milk is purchased from multiple suppliers who have processing facilities near concentrations of Company-operated retail stores. Dairy prices in the United States, which closely follow the monthly Class I fluid milk base price...

  • Page 9
    ...-making equipment, such as drip and French press coffeemakers, espresso machines and coffee grinders, are generally purchased directly from their manufacturers. Coffee-related accessories, including items bearing the Company's logos and trademarks, are produced and distributed through contracts with...

  • Page 10
    ...or furnished to the SEC. The Company's corporate governance policies, ethics code and Board of Directors' committee charters are also posted within this section of the website. The information on the Company's website is not part of this or any other report Starbucks files with, or furnishes to, the...

  • Page 11
    ... for Starbucks comparable store sales growth rates, earnings per share and new store openings could cause the market price of Starbucks stock to drop rapidly and sharply. ‚ Starbucks is highly dependent on the financial performance of its United States operating segment. The Company's financial...

  • Page 12
    ... to manage the impact of any adverse publicity regarding the Company's business practices or the health effects of consuming its products; ‚ increased labor costs, including significant increases in worker's compensation insurance premiums and health care benefits; ‚ litigation against Starbucks...

  • Page 13
    ... is challenging. The Company's long-term goal is to open approximately 15,000 Starbucks stores in the United States and at least 15,000 stores in International markets. Starbucks expects annual total net revenue growth of approximately 20% and annual earnings per share growth of approximately 20...

  • Page 14
    ... compete directly against specialty coffees sold through supermarkets, specialty retailers and a growing number of specialty coffee stores. Some of the Company's competitors in these whole bean specialty coffee distribution channels have greater financial and marketing resources than Starbucks...

  • Page 15
    ... may not embrace Starbucks products to the same extent as consumers in the Company's existing markets. Occupancy costs and store operating expenses are also sometimes higher internationally than in the United States due to higher rents for prime store locations or costs of compliance with country...

  • Page 16
    ... and application of laws and regulations and the enforceability of intellectual property and contract rights. ‚ Failure of the Company's internal control over financial reporting could harm its business and financial results. The management of Starbucks is responsible for establishing...

  • Page 17
    ...and distribution Warehouse Warehouse Roasting and distribution Warehouse Roasting and distribution Warehouse Warehouse and distribution Roasting and distribution The Company leases approximately 935,000 square feet of two buildings located in Seattle, Washington for corporate administrative offices...

  • Page 18
    ...marketing for Starbucks Coffee Company, a predecessor to the Company. Mr. Schultz also serves on the board of directors of DreamWorks Animation SKG, Inc. James L. Donald joined Starbucks in October 2002 and has been president and chief executive officer and a director of the Company since April 2005...

  • Page 19
    ... on the board of directors of The Nasdaq Stock Market, Inc. Paula E. Boggs joined Starbucks in September 2002 as executive vice president, general counsel and secretary. Prior to joining Starbucks, Ms. Boggs served as vice president, legal, for products, operations and information technology at Dell...

  • Page 20
    ... Purchases of Equity Securities 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(2) Period(1) Total Number of Shares Purchased Average Price Paid per Share Jul 4, 2005 - Jul 31, 2005...

  • Page 21
    SHAREHOLDER INFORMATION Market Information and Dividend Policy The Company's common stock is traded on the National Market tier of The Nasdaq Stock Market, Inc. (""Nasdaq''), under the symbol ""SBUX.'' The following table shows the quarterly high and low closing sale prices per share of the Company...

  • Page 22
    ...(4 Cash dividends per share BALANCE SHEET Working capital(5 Total assets Short-term borrowings(6 Long-term debt (including current portion Shareholders' equity STORE INFORMATION Percentage change in comparable store sales:(7) United States International Consolidated Stores opened during...

  • Page 23
    ... sales week. Store openings are reported net of closures. International store information has been adjusted for the fiscal 2005 acquisitions of Germany, Southern China and Chile licensed operations by reclassifying historical information from Licensed stores to Company-operated stores. United States...

  • Page 24
    customers. The strategy is to increase comparable store sales by continuously improving the level of customer service, introducing innovative products and improving the speed of service through training, technology and process improvement. Global comparable store sales for Company-operated markets ...

  • Page 25
    ... Revenues STATEMENTS OF EARNINGS DATA Net revenues: Company-operated retail Specialty: Licensing Foodservice and other Total specialty Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General...

  • Page 26
    ...to growth in new and existing U.S. and International foodservice accounts and, to a lesser extent, growth in the Company's emerging entertainment business. Cost of sales including occupancy costs decreased to 40.9% of total net revenues in the 52-week period of fiscal 2005, from 41.4% in the 53-week...

  • Page 27
    ... expenses increased to $340 million in the 52-week period of fiscal 2005, from $289 million in the 53-week period of fiscal 2004. The increase was primarily from the opening of 735 new Company-operated retail stores in the last 12 months. As a percentage of total net revenues, depreciation...

  • Page 28
    ... United States International Unallocated Corporate Consolidated Net revenues: Company-operated retail 3,800,367 Specialty: Licensing 436,981 Foodservice and other 253,502 Total specialty 690,483 Total net revenues 4,490,850 Cost of sales including occupancy costs 1,782,584 Store operating...

  • Page 29
    ...% of total net revenues. International operations sells coffee and other beverages, whole bean coffees, complementary food, coffee brewing equipment and merchandise through Company-operated retail stores in the United Kingdom, Canada, Thailand, Australia, Germany, Singapore, China, Chile and Ireland...

  • Page 30
    ... product sales and royalty revenues from opening 341 new licensed retail stores in the last 12 months, volume driven growth in the Canadian grocery and warehouse club businesses, and, to a lesser extent, the launch of new ready-to-drink coffee beverages in Japan and Taiwan. International foodservice...

  • Page 31
    ... marketing expenditures for holiday and new product promotions, as well as increased costs to maintain retail stores and equipment due to sustained high traffic levels. Other operating expenses (expenses associated with the Company's Specialty Operations) decreased to 20.5% of specialty revenues...

  • Page 32
    ...margin increased to 11.5% of total net revenues in fiscal 2004, compared to 10.3% in fiscal 2003, primarily due to leverage gained on most fixed operating costs distributed over an expanded revenue base, partially offset by higher dairy and green coffee commodity costs. Net interest and other income...

  • Page 33
    ... 2003 United States International Unallocated Corporate Consolidated Net revenues: Company-operated retail Specialty: Licensing Foodservice and other Total specialty Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation...

  • Page 34
    ... 417 new licensed retail stores in the last 12 months. Foodservice and other revenues increased 23% to $254 million from $206 million in fiscal 2003, due to both the addition of new and existing Starbucks and Seattle Coffee Company foodservice accounts. United States operating income increased by 26...

  • Page 35
    ...of Financial Accounting Standards No. 95, ""Statement of Cash Flows,'' required reclassification to short-term investments. The Company has made corresponding adjustments to its consolidated statement of cash flows for the prior fiscal years of 2004 and 2003 to reflect the gross purchases, sales and...

  • Page 36
    ... earnings of $494 million and noncash depreciation and amortization expenses of $367 million. Cash used by investing activities totaled $221 million in fiscal 2005. Net capital additions to property, plant and equipment used $644 million, primarily from opening 735 new Company-operated retail stores...

  • Page 37
    ...'s Accounting and Disclosure Requirements for Guarantees, Including Indebtedness of Others,'' Starbucks has applied the disclosure provisions only and has not recorded the guarantees on its balance sheet. Product Warranties Coffee brewing and espresso equipment sold to customers through Company...

  • Page 38
    ... statements according to an umbrella risk management policy, which was approved in May 2005 by the Company's Board of Directors. Under this policy, market-based risks, including commodity costs and foreign currency exchange rates, are quantified and evaluated for potential mitigation strategies...

  • Page 39
    ... on equity mutual funds within its trading portfolio. The trading securities approximate a portion of the Company's liability under the Management Deferred Compensation Plan (""MDCP''). A corresponding liability is included in ""Accrued compensation and related costs'' on the consolidated balance...

  • Page 40
    ... require Starbucks to, among other things, measure all employee stock-based compensation awards using a fair value method and record the expense in the Company's consolidated financial statements. The provisions of SFAS 123R, as amended by SEC Staff Accounting Bulletin No. 107, ""Share-Based Payment...

  • Page 41
    ...of expense in the financial statements, under SFAS 123R, any excess tax benefits received upon exercise of options will be presented as a financing activity inflow rather than as an adjustment of operating activity as currently presented. Based on its current analysis and information, management has...

  • Page 42
    ...CONSOLIDATED STATEMENTS OF EARNINGS In thousands, except earnings per share Fiscal Year Ended Oct 2, 2005 Oct 3, 2004 Sept 28, 2003 Net revenues: Company-operated retail Specialty: Licensing Foodservice and other Total specialty Total net revenues Cost of sales including occupancy costs Store...

  • Page 43
    ... Equity and other investments Property, plant and equipment, net Other assets Other intangible assets Goodwill TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Accrued occupancy costs Accrued taxes Short-term...

  • Page 44
    ... Distributions of income from equity investees Tax benefit from exercise of nonqualified stock options Net accretion of discount and amortization of premium on marketable securities Cash provided/(used) by changes in operating assets and liabilities: Accounts receivable Inventories Accounts...

  • Page 45
    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY In thousands, except share data Common Stock Shares Additional Paid-In Capital Other Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Amount Total Balance, September 29, 2002ÏÏ Net earnings Unrealized ...

  • Page 46
    ... TO CONSOLIDATED FINANCIAL STATEMENTS Fiscal years ended October 2, 2005, October 3, 2004, and September 28, 2003 Note 1: Summary of Significant Accounting Policies Description of Business Starbucks Corporation (together with its subsidiaries, ""Starbucks'' or the ""Company'') purchases and roasts...

  • Page 47
    ... consolidated financial statements. Short-term and Long-term Investments The Company's short-term and long-term investments consist primarily of investment-grade marketable debt securities as well as bond and equity mutual funds, all of which are classified as trading or available-for-sale. Trading...

  • Page 48
    ... are charged against earnings. For further information on investments, see Notes 4 and 7. The carrying value of short-term and long-term debt approximates fair value. Derivative Instruments The Company manages its exposure to various risks within the consolidated financial statements according to an...

  • Page 49
    ... by a charge against current operations. Property, plant and equipment assets are grouped at the lowest level for which there are identifiable cash flows when assessing impairment. Cash flows for retail assets are identified at the individual store level. The Company recognized net impairment and...

  • Page 50
    ... benefits. Direct-response advertising consists primarily of customer acquisition expenses including applications for customers to apply for the Starbucks Card DuettoTM. These capitalized costs are amortized over the life of the credit card which is estimated to be three years. Total advertising...

  • Page 51
    ... and amortizes the deferred rent over the terms of the leases as reductions to rent expense on the consolidated statements of earnings. For premiums paid upfront to enter a lease agreement, the Company records a deferred rent asset in ""Prepaid expenses and other current assets'' and ""Other assets...

  • Page 52
    ... pro forma information regarding net income and earnings per share has been determined as if the Company had accounted for its employee stock options under the fair value method. The fair value for these stock options was estimated at the date of grant using a Black-Scholes option pricing model with...

  • Page 53
    ... Directors pursuant to a contract, instruction or written plan meeting the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934. Share repurchases are not displayed separately as treasury stock on the consolidated balance sheets or consolidated statements of shareholders' equity...

  • Page 54
    ... require Starbucks to, among other things, measure all employee stock-based compensation awards using a fair value method and record the expense in the Company's consolidated financial statements. The provisions of SFAS 123R, as amended by SEC Staff Accounting Bulletin No. 107, ""Share-Based Payment...

  • Page 55
    ...Ethos''), a privately held bottled water company based in Santa Monica, California, for $8 million. The earnings of Ethos are included in the accompanying consolidated financial statements from the date of acquisition. In July 2005, Starbucks increased its equity ownership in its licensed operations...

  • Page 56
    ..., the cumulative effect of the accounting change for financial results previously reported under the cost method and as restated in this Report under the equity method resulted in reductions of net earnings of $0.1 million for the 39 weeks ended July 3, 2005, and $0.3 million and $0.1 million for...

  • Page 57
    ... Holding Losses October 2, 2005 Fair Value Short-term investments Ì available-for-sale securities: State and local government obligations Mutual funds U.S. government agency obligations Corporate debt securities Asset-backed securities Total Short-term investments Ì trading securities...

  • Page 58
    ... Holding Losses Fair Value Short-term investments Ì available-for-sale securities: State and local government obligations U.S. government agency obligations Corporate debt securities Asset-backed securities Total Short-term investments Ì trading securities ÏÏÏÏÏ Total short-term...

  • Page 59
    ... in ""Accrued compensation and related costs'' on the consolidated balance sheets. In fiscal years 2005 and 2004, the changes in net unrealized holding gains in the trading portfolio included in earnings were $2.4 million and $1.1 million, respectively. Long-term investments generally mature in...

  • Page 60
    ... into earnings within 12 months. No cash flow hedges were discontinued during the fiscal years 2005, 2004 and 2003. Current contracts will expire within 12 months. Net Investment Hedges Net investment derivative instruments hedge the Company's equity method investment in Starbucks Coffee Japan...

  • Page 61
    ... 2, 2005, the Company had committed to fixed-price purchase contracts for green coffee totaling $375 million. The Company believes, based on relationships established with its suppliers in the past, the risk of nondelivery on such purchase commitments is remote. Note 7: Equity and Other Investments...

  • Page 62
    ... consolidated balance sheets from equity investees related to product sales and store license fees. As of October 2, 2005, the aggregate market value of the Company's investment in Starbucks Coffee Japan, Ltd., was approximately $174.8 million based on its available quoted market price. Cost Method...

  • Page 63
    ...2, 2005 Oct 3, 2004 Property, plant and equipment are recorded at cost and consist of the following (in thousands): Fiscal Year Ended Land Buildings Leasehold improvements Store equipment Roasting equipment Furniture, fixtures and other Less accumulated depreciation and amortization Work in...

  • Page 64
    ...as of October 2, 2005, with no outstanding letters of credit, and the weighted average contractual interest rate was 4.0%. In September 1999, Starbucks purchased the land and building comprising its York County, Pennsylvania, roasting plant and distribution facility. The total purchase price was $12...

  • Page 65
    ...consolidated statements of earnings. For operations accounted for under the consolidation method, but in which Starbucks owns less than 100% of the equity interests, long-term liabilities are maintained for the collective ownership interests of minority shareholders. As of October 2, 2005, Starbucks...

  • Page 66
    ... billion in fiscal 2005. Starbucks acquired 10.0 million shares at an average price of $20.43 for a total cost of $203.4 million during fiscal 2004. During fiscal 2005, the Starbucks Board of Directors authorized additional repurchases of 30 million shares of the Company's common stock, and as of...

  • Page 67
    ... Oct 3, 2004 Sept 28, 2003 Net earnings Unrealized holding gains/(losses) on available-for-sale securities, net of tax benefit/(provision) of $889, $618 and ($53) in 2005, 2004 and 2003, respectively Unrealized holding losses on cash flow hedges, net of tax benefit of $2,268, $2,801 and $804 in...

  • Page 68
    ... their base earnings toward the quarterly purchase of the Company's common stock. The employee's purchase price is 85% of the lesser of the fair market value of the stock on the first business day or the last business day of the quarterly offering period. Employees may purchase shares having a fair...

  • Page 69
    ... purchase of the Company's common stock. The employee's purchase price is 85% of the fair value of the stock on the first business day of a three-year offering period. No compensation expense was recorded in connection with the plan during fiscal years 2005, 2004 or 2003. The total number of shares...

  • Page 70
    ... earnings is not practicable. In December 2004, the FASB issued Staff Position No. FAS 109-1, ""Application of SFAS No. 109, Accounting for Income Taxes, to the Tax Deduction on Qualified Production Activities provided by the American Jobs Creation Act of 2004'' (""FSP 109-1''). FSP 109-1 states...

  • Page 71
    ...Oct 2, 2005 Oct 3, 2004 Deferred tax assets: Accrued occupancy costs Accrued compensation and related costs Other accrued expenses Foreign tax credits Other Total Valuation allowance Total deferred tax asset, net of valuation allowance Deferred tax liabilities: Property, plant and equipment...

  • Page 72
    ... Starbucks with in-store music services. Starbucks paid $0.7 million to the privately held company for music services during fiscal year 2003 while the related party relationship existed. In June 2005, a member of the Company's Board of Directors was appointed president and chief financial officer...

  • Page 73
    ...procedures in section 16(b) of the FLSA. On January 3, 2005, the district court entered an order authorizing nationwide notice of the lawsuit to all current and former store managers employed by the Company during the past three years. The Company filed a motion for summary judgment as to the claims...

  • Page 74
    ... and 16% of total net revenues. International sells coffee and other beverages, whole bean coffees, complementary food, coffee brewing equipment and merchandise through Company-operated retail stores in the United Kingdom, Canada, Thailand, Australia, Germany, Singapore, China, Chile and Ireland, as...

  • Page 75
    ... support organization, relative to the current levels of revenue and operating income, than in the United States. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies in Note 1. Operating income represents earnings...

  • Page 76
    ... information by operating segment for the fiscal years noted (in thousands): United States(1) International(1) Unallocated Corporate(2) Total Fiscal 2005: Total net revenues Earnings/(loss) before income taxes Depreciation and amortization Income from equity investees Equity method investments...

  • Page 77
    ... location of the customers and consist primarily of revenues from the United Kingdom and Canada, which together account for approximately 79% of foreign net revenues. Fiscal Year Ended Oct 2, 2005 Oct 3, 2004 Sept 28, 2003 Long-lived assets: United States Foreign countries Total $1,915...

  • Page 78
    ... STATEMENTS 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 2, 2005...

  • Page 79
    ...' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Starbucks Corporation Seattle, Washington We have audited management's assessment, included in the accompanying Report of Management on Internal...

  • Page 80
    ... Accounting Oversight Board (United States), the consolidated financial statements as of and for the fiscal year ended October 2, 2005 of the Company and our report dated December 16, 2005 expressed an unqualified opinion on those financial statements. /s/ DELOITTE & TOUCHE LLP Seattle, Washington...

  • Page 81
    ... chief financial officer concluded that the Company's disclosure controls and procedures are effective, as of the end of the period covered by this Report (October 2, 2005), in ensuring that material information relating to Starbucks Corporation, including its consolidated subsidiaries, required to...

  • Page 82
    ... executive officer, chief financial officer, controller and other finance leaders, which is a ""code of ethics'' as defined by applicable rules of the Securities and Exchange Commission. This code is publicly available on the Company's website at www.starbucks.com/aboutus/corporate Ì governance.asp...

  • Page 83
    ... Consolidated Statements of Shareholders' Equity for the fiscal years ended October 2, 2005, October 3, 2004, and September 28, 2003; ‚ Notes to Consolidated Financial Statements; and ‚ Reports of Independent Registered Public Accounting Firm 2. Financial Statement Schedules Financial statement...

  • Page 84
    SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. STARBUCKS CORPORATION December 16, 2005 By: JAMES L. DONALD ...

  • Page 85
    Signature Title Date By: /s/ HOWARD BEHAR Howard Behar director December 16, 2005 By: /s/ WILLIAM W. BRADLEY William W. Bradley MELLODY HOBSON Mellody Hobson /s/ OLDEN LEE Olden Lee director December 16, 2005 By: /s/ director December 16, 2005 By: director December 16, 2005 By: ...

  • Page 86
    ..., L.P. and Starbucks Corporation Starbucks Corporation Executive Management Bonus Plan Starbucks Corporation Management Deferred Compensation Plan Starbucks Corporation 1997 Deferred Stock Plan Starbucks Corporation UK Share Save Plan Starbucks Corporation Directors Deferred Compensation Plan, as...

  • Page 87
    ... Purchase of Stock under the 2005 Key Employee Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan Stock Option Grant Agreement for Purchase of Stock under the 2005 Non-Employee Director Sub-Plan to the Starbucks Corporation 2005 LongTerm Equity Incentive Plan Letter Agreement...

  • Page 88
    ...Joint Book Managers, Wells Fargo Bank, N.A., as Syndication Agent, and the other Lenders party thereto Subsidiaries of Starbucks Corporation Consent of Independent Registered Public Accounting Firm Certification of Principal Executive Officer Pursuant to Rule 13a-14 of the Securities Exchange Act of...

  • Page 89
    ... Singapore Pte. Ltd. (a Singapore corporation) Sur-Andino Cafe S.A. (a Chilean corporation) Starbucks Coffee (Thailand) Ltd. (a Thailand corporation) Starbucks Global Card Services, Inc. (a Virginia corporation) Starbucks Holding Company (a Washington Corporation) Starbucks Manufacturing Corporation...

  • Page 90
    ... 2005, relating to the financial statements of Starbucks Corporation and management's report on the effectiveness of internal control over financial reporting, appearing in this Annual Report on Form 10-K of Starbucks Corporation for the year ended October 2, 2005. /s/ DELOITTE & TOUCHE LLP Seattle...

  • Page 91
    ... the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act...

  • Page 92
    b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. JAMES L. DONALD James L. Donald president and chief executive officer December 16, 2005 /s/

  • Page 93
    ... the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act...

  • Page 94
    ..., whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. MICHAEL CASEY Michael Casey executive vice president, chief financial officer and chief administrative officer December 16, 2005 /s/

  • Page 95
    ...2002, that, to my knowledge: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Starbucks...

  • Page 96
    ...2002, that, to my knowledge: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Starbucks...