Starbucks 2005 Annual Report Download - page 10

The Company owns numerous copyrights for items such as product packaging, promotional materials, in-store
graphics and training materials. The Company also holds patents on certain products, systems and designs. In
addition, the Company has registered and maintains numerous Internet domain names, including
""Starbucks.com'' and ""Starbucks.net.''
Research and Development
Starbucks research and development efforts are led by food scientists, engineers, chemists and culinarians in
the Research and Development department. This team is responsible for the technical development of food
and beverage products and new equipment. The Company spent approximately $10.5 million, $8.3 million and
$5.4 million during fiscal 2005, 2004 and 2003, respectively, on technical research and development activities,
in addition to customary product testing and product and process improvements in all areas of its business.
Seasonality and Quarterly Results
Starbucks business is subject to seasonal fluctuations. Significant portions of the Company's net revenues and
profits are realized during the first quarter of the fiscal year, which includes the December holiday season. In
addition, quarterly results are affected by the timing of the opening of new stores, and the Company's rapid
growth may conceal the impact of other seasonal influences. Because of the seasonality of the business, results
for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.
Employees
As of October 2, 2005, the Company employed approximately 115,000 people worldwide. In the United
States, Starbucks employed approximately 97,500 people, with 91,200 in Company-operated retail stores and
the remainder in the Company's administrative and regional offices, and store development, roasting and
warehousing operations. Approximately 17,500 employees were employed in International Company-operated
retail stores, regional support facilities, roasting and warehousing operations. At fiscal year end, employees at
10 of the Company's Canadian stores were represented by a union. Starbucks believes its current relations
with its employees are good.
Available Information
Starbucks Form 10-K reports, along with all other reports and amendments filed with or furnished to the
Securities and Exchange Commission (""SEC''), are publicly available free of charge on the Investor
Relations section of Starbucks website at www.starbucks.com/aboutus/investor.asp or at www.sec.gov as soon
as reasonably practicable after these materials are filed with 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 SEC.
Starbucks demonstrates its commitment to corporate social responsibility (""CSR'') by conducting its business
in ways that produce social, environmental and economic benefits to the communities where Starbucks
operates. The Company aligns its principles for social responsibility with its overall strategy and business
operations. As a result, Starbucks believes it delivers benefits to the Company and its stakeholders Ì partners,
customers, suppliers, shareholders, community members and others Ì while distinguishing Starbucks as a
leader within the coffee industry. Providing open communication and transparency helps the Company be
accountable to its stakeholders. To support this goal, Starbucks publishes a CSR Annual Report. Starbucks
fiscal 2005 CSR Annual Report will be available online at www.starbucks.com/csr beginning February 8,
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