Starbucks 2006 Annual Report Download - page 59

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Starbucks has the ability to acquire additional interests in some of its cost method investees at certain intervals.
Depending on the Company’s total percentage of ownership interest and its ability to exercise significant influence over
financial and operating policies, additional investments may require the retroactive application of the equity method of
accounting.
Other Investments
Starbucks has investments in privately held equity securities, that are also accounted for under the cost method, whose
carrying values approximate fair value. There were no realized losses generated from other-than-temporary impairment
during fiscal 2006, 2005 or 2004.
Note 8: Property, Plant and Equipment
Property, plant and equipment are recorded at cost and consist of the following (in thousands):
FISCAL YEAR ENDED Oct 1, 2006 Oct 2, 2005
Land $ 32,350 $ 13,833
Buildings 109,129 68,180
Leasehold improvements 2,436,503 1,947,963
Store equipment 784,444 646,792
Roasting equipment 197,004 168,934
Furniture, fixtures and other 523,275 476,372
4,082,705 3,322,074
Less accumulated depreciation and amortization (1,969,804) (1,625,564)
2,112,901 1,696,510
Work in progress 174,998 145,509
Property, plant and equipment, net $ 2,287,899 $ 1,842,019
Note 9: Other Intangible Assets and Goodwill
As of October 1, 2006, indefinite-lived intangibles were $34.1 million and definite-lived intangibles, which collectively
had a remaining weighted average useful life of approximately eight years, were $3.9 million, net of accumulated
amortization of $3.4 million. As of October 2, 2005, indefinite-lived intangibles were $31.6 million and definite-lived
intangibles, which collectively had a remaining weighted average useful life of approximately six years, were $3.8 million,
net of accumulated amortization of $2.1 million. The increase in indefinite-lived intangibles was primarily due to
ongoing trademark activity. Amortization expense for definite-lived intangibles was $1.2 million, $0.8 million and
$0.5 million during fiscal 2006, 2005 and 2004, respectively.
The following table summarizes, as of October 1, 2006, the estimated amortization expense for each of the next five fiscal
years (in thousands):
FISCAL YEAR ENDING
2007 $1,046
2008 578
2009 480
2010 457
2011 403
Total $2,964
STARBUCKS CORPORATION, FORM 10-K 55