Starbucks 2007 Annual Report Download - page 56

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Note 5: Inventories
Inventories consist of the following (in thousands):
Fiscal Year Ended Sept 30, 2007 Oct 1, 2006
Coffee:
Unroasted .............................................. $339,434 $328,051
Roasted ................................................ 88,615 80,199
Other merchandise held for sale ................................ 175,489 146,345
Packaging and other supplies .................................. 88,120 81,627
Total .................................................... $691,658 $636,222
Other merchandise held for sale includes, among other items, brewing equipment, serveware and retail media.
As of September 30, 2007, the Company had committed to purchasing green coffee totaling $324 million under
fixed-price contracts and an estimated $49 million under price-to-be-fixed contracts. The Company believes, based
on relationships established with its suppliers in the past, the risk of non-delivery on such purchase commitments is
remote.
Note 6: Equity and Other Investments
The Company’s equity and other investments consist of the following (in thousands):
Fiscal Year Ended Sept 30, 2007 Oct 1, 2006
Equity method investments ................................... $234,468 $205,004
Cost method investments ..................................... 24,378 14,089
Total .................................................... $258,846 $219,093
Equity Method
The Company’s equity investees and ownership interests by reportable operating segment are as follows:
Fiscal Year Ended Sept 30, 2007 Oct 1, 2006
United States
StarCon, LLC ........................................... 50.0% —%
International
Starbucks Coffee Korea Co., Ltd. ............................ 50.0 50.0
Starbucks Coffee Austria GmbH ............................. 50.0 50.0
Starbucks Coffee Switzerland AG............................. 50.0 50.0
Starbucks Coffee España, S.L. ............................... 50.0 50.0
President Starbucks Coffee Taiwan Ltd. ........................ 50.0 50.0
Shanghai President Coffee Co. .............................. 50.0 50.0
Starbucks Coffee France SAS................................ 50.0 50.0
Berjaya Starbucks Coffee Company Sdn. Bhd. ................... 49.9 49.9
Starbucks Brasil Comercio de Cafes Ltda. ...................... 49.0 49.0
Starbucks Coffee Japan, Ltd ................................. 40.1 40.1
CPG
The North American Coffee Partnership ........................ 50.0 50.0
Starbucks Ice Cream Partnership ............................. 50.0 50.0
StarCon, LLC is a joint venture formed in March 2007 with Concord Music Group, Inc. that is engaged in the
recorded music business. The International entities operate licensed Starbucks retail stores. The Company also has
licensed the rights to produce and distribute Starbucks branded products to two partnerships in which the Company
holds 50% equity interests. The North American Coffee Partnership with the Pepsi-Cola Company develops and
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