Starbucks 2006 Annual Report Download - page 13

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States are generally held by a wholly owned affiliate of the Company and are used by the Company under license. Some of
the Company’s trademarks, including Starbucks», the Starbucks logo, Frappuccino», Seattle’s Best Coffee»and Tazo»are
of material importance to the Company. The duration of trademark registrations varies from country to country.
However, trademarks are generally valid and may be renewed indefinitely as long as they are in use and/or their
registrations are properly maintained.
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 $6.5 million, $6.2 million and $4.7 million during fiscal 2006,
2005 and 2004, 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 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 1, 2006, the Company employed approximately 145,800 people worldwide. In the United States,
Starbucks employed approximately 123,600 people, with 116,100 in Company-operated retail stores and the remainder
in the Company’s administrative and regional offices, and store development, roasting and warehousing operations.
Approximately 22,200 employees were employed in International, with 21,200 in Company-operated retail stores and
the remainder in the Company’s regional support facilities and roasting and warehousing operations. At fiscal year end,
employees at nine 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 http://investor.starbucks.com 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 in which 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 — partners, customers, suppliers, share-
holders, community members and others — 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 2006 CSR Annual Report will be available online at
STARBUCKS CORPORATION, FORM 10-K 9