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FISCAL YEAR ENDED Oct 1, 2006 Oct 2, 2005 Oct 3, 2004
Long-lived assets:
United States $2,446,126 $1,914,846 $1,739,638
Foreign countries 453,027 389,513 299,740
Total $2,899,153 $2,304,359 $2,039,378
Assets attributed to foreign countries are based on the country in which those assets are located.
Note 20: Subsequent Event
On October 18, 2006, the Company acquired from H&Q Asia Pacific, and other shareholders, 90% equity ownership of
High Grown Investment Group (Hong Kong) Limited, which in turn is the controlling shareholder of Beijing Mei Da
Coffee Co. Ltd. (“Mei Da”), the operator of 61 Starbucks retail stores in Beijing and Tianjin, China, and an authorized
licensee of Starbucks Coffee International. Beijing Sanyuan Company continues to be a minority shareholder of Mei Da.
Due to its majority ownership of these operations, Starbucks will apply the consolidation method of accounting
beginning on the date of acquisition.
Note 21: Quarterly Financial Information (unaudited)
Summarized quarterly financial information in fiscal 2006 and 2005 is as follows (in thousands, except earnings per share):
First Second Third Fourth Total
2006 quarter:
Net revenues $1,934,092 $1,885,822 $1,963,673 $2,003,355 $7,786,942
Operating income 279,847 201,894 214,573 197,638 893,952
Earnings before cumulative effect of
change in accounting principle 174,156 127,316 145,498 134,503 581,473
Cumulative effect of accounting
change for FIN 47, net of taxes — — — 17,214 17,214
Net earnings 174,156 127,316 145,498 117,289 564,259
Earnings per common share before
cumulative effect of accounting
change for FIN 47 — diluted 0.22 0.16 0.18 0.17 0.73
Net earnings per common share —
diluted $ 0.22 $ 0.16 $ 0.18 $ 0.15 $ 0.71
2005 quarter:
Net revenues $1,589,544 $1,518,716 $1,601,799 $1,659,241 $6,369,300
Operating income 227,155 157,278 199,570 196,515 780,518
Net earnings 144,674 100,461 125,513 123,722 494,370
Net earnings per common share —
diluted $ 0.17 $ 0.12 $ 0.16 $ 0.16 $ 0.61
STARBUCKS CORPORATION, FORM 10-K 69