Starbucks 2005 Annual Report Download - page 66

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The Company has subleases related to certain of its operating lease agreements. During fiscal 2005, 2004 and
2003, the Company recognized sublease income of $4.3 million, $4.0 million and $3.2 million, respectively.
The Company had capital lease obligations of $2.6 million and $0.3 million as of October 2, 2005 and
October 3, 3004, respectively. At October 2, 2005, the current portion of the total obligation was $0.8 million
and was included in ""Other accrued expenses'' and the remaining long-term portion of $1.8 million was
included in ""Other long-term liabilities'' on the consolidated balance sheet. Capital lease obligations expire at
various dates, with the latest maturity in 2020.
Note 13: Shareholders' Equity
In addition to 1.2 billion shares of authorized common stock with $0.001 par value per share, the Company
has authorized 15 million shares of preferred stock, none of which was outstanding at October 2, 2005.
Under the Company's authorized share repurchase program, Starbucks acquired 45.1 million shares at an
average price of $25.26 for a total cost of $1.1 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 October 2, 2005, there were 22.1 million remaining shares authorized for repurchase.
Share repurchases were funded through cash, cash equivalents, available-for-sale securities and borrowings
under the revolving credit facility and were part of the Company's active capital management program.
Comprehensive Income
Comprehensive income includes all changes in equity during the period, except those resulting from
transactions with shareholders and subsidiaries of the Company. It has two components: net earnings and
other comprehensive income. Accumulated other comprehensive income reported on the Company's consoli-
dated 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.
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