Starbucks 2006 Annual Report Download - page 57

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accumulated net derivative losses of $3.2 million, net of taxes, in other comprehensive income as of October 1, 2006,
related to net investment derivative hedges. Current contracts expire within 33 months.
The following table presents the net gains and losses reclassified from other comprehensive income into the consolidated
statements of earnings during the periods indicated for cash flow and net investment hedges (in thousands):
Oct 1, 2006 Oct 2, 2005 Oct 3, 2004
Cash flow hedges:
Reclassified gains/(losses) into total net revenues $ 1,489 $ (843) $(1,488)
Reclassified losses into cost of sales (7,698) (4,535) (761)
Net reclassified losses — cash flow hedges (6,209) (5,378) (2,249)
Net reclassified gains — net investment hedges 3,754 1,058 673
Total $(2,455) $(4,320) $(1,576)
Note 6: Inventories
Inventories consist of the following (in thousands):
FISCAL YEAR ENDED Oct 1, 2006 Oct 2, 2005
Coffee:
Unroasted $328,051 $319,745
Roasted 80,199 56,231
Other merchandise held for sale 146,345 109,094
Packaging and other supplies 81,627 61,229
Total $636,222 $546,299
As of October 1, 2006, the Company had committed to fixed-price purchase contracts for green coffee totaling
$546 million. The Company believes, based on relationships established with its suppliers in the past, the risk of non-
delivery on such purchase commitments is remote. Other merchandise held for sale includes, among other items, brewing
equipment, serveware and tea.
Note 7: Equity and Other Investments
The Company’s equity and other investments consist of the following (in thousands):
FISCAL YEAR ENDED Oct 1, 2006 Oct 2, 2005
Equity method investments $205,004 $189,876
Cost method investments 11,283 8,407
Other investments 2,806 2,806
Total $219,093 $201,089
STARBUCKS CORPORATION, FORM 10-K 53