Starbucks 2006 Annual Report Download - page 62

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Minimum future rental payments under noncancelable operating lease obligations as of October 1, 2006, are as follows
(in thousands):
FISCAL YEAR ENDING
2007 $ 531,634
2008 520,553
2009 492,759
2010 452,859
2011 408,412
Thereafter 1,486,721
Total minimum lease payments $3,892,938
The Company has subleases related to certain of its operating lease agreements. During fiscal 2006, 2005 and 2004, the
Company recognized sublease income of $5.7 million, $4.3 million and $4.0 million, respectively.
The Company had capital lease obligations of $4.1 million and $2.6 million as of October 1, 2006 and October 2, 2005,
respectively. As of October 1, 2006, the current portion of the total obligation was $1.7 million and was included in
“Other accrued expenses” and the remaining long-term portion of $2.4 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. Assets held under capital leases are included in “Property, plant and equipment, net,” on the consolidated balance
sheets.
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 7.5 million shares of preferred stock, none of which was outstanding at October 1, 2006.
Under the Company’s authorized share repurchase program, Starbucks acquired 25.6 million shares at an average price of
$32.34 for a total accrual-based cost of $828 million in fiscal 2006. The related cash amount used to repurchase shares in
fiscal 2006 totaled $854 million. The difference between the two amounts represents the effect of the net change in
unsettled trades totaling $26 million from October 2, 2005. Starbucks acquired 45.1 million shares at an average price of
$25.26 for a total cost of $1.1 billion during fiscal 2005. During fiscal 2006, the Starbucks Board of Directors authorized
additional repurchases of 25 million shares of the Company’s common stock, and as of October 1, 2006, there were
21.5 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 consolidated 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.
58 STARBUCKS CORPORATION, FORM 10-K