Starbucks 2006 Annual Report Download - page 74

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AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of Starbucks Corporation
Seattle, Washington
We have audited the accompanying consolidated balance sheets of Starbucks Corporation and subsidiaries (the
“Company”) as of October 1, 2006 and October 2, 2005, and the related consolidated statements of earnings,
shareholders’ equity, and cash flows for each of the three fiscal years in the period ended October 1, 2006. These financial
statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of
Starbucks Corporation and subsidiaries as of October 1, 2006 and October 2, 2005, and the results of their operations
and their cash flows for each of the three years in the period ended October 1, 2006, in conformity with accounting
principles generally accepted in the United States of America.
As discussed in Note 1 to the consolidated financial statements, the Company changed its method of accounting for
stock-based compensation upon adoption of Statement of Financial Accounting Standards No. 123(R), “Share-Based
Payment” and the Company changed its method of accounting for conditional asset retirement obligations upon
adoption of Financial Accounting Standards Board Interpretation No. 47, “Accounting for Conditional Asset Retirement
Obligations - an interpretation of FASB Statement No. 143.”
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the effectiveness of the Company’s internal control over financial reporting as of October 1, 2006, based on
criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission and our report dated December 14, 2006 expressed an unqualified opinion on
management’s assessment of the effectiveness of the Company’s internal control over financial reporting and an
unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
/s/ DELOITTE & TOUCHE LLP
Seattle, Washington
December 14, 2006
70 STARBUCKS CORPORATION, FORM 10-K