Starbucks 2008 Annual Report Download - page 66

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Note 8: Property, Plant and Equipment
Property, plant and equipment consisted of the following (in millions):
Fiscal Year Ended Sep 28, 2008 Sep 30, 2007
Land ................................................... $ 59.1 $ 56.2
Buildings ................................................ 217.7 161.7
Leasehold improvements . . ................................... 3,363.1 3,179.6
Store equipment ........................................... 1,045.3 1,007.0
Roasting equipment ........................................ 220.7 208.8
Furniture, fixtures and other .................................. 517.8 477.9
Work in progress .......................................... 293.6 215.3
5,717.3 5,306.5
Less accumulated depreciation and amortization ................... (2,760.9) (2,416.1)
Property, plant and equipment, net.............................. $2,956.4 $ 2,890.4
Note 9: Other Intangible Assets and Goodwill
Other intangible assets consisted of the following (in millions):
Fiscal Year Ended Sep 28, 2008 Sep 30, 2007
Indefinite-lived intangibles ................................... $58.3 $36.9
Definite-lived intangibles . ................................... 14.2 9.5
Accumulated amortization . ................................... (5.9) (4.3)
Definite-lived intangibles, net ................................. 8.3 5.2
Total other intangible assets .................................. $66.6 $42.1
Definite-lived intangibles approximate remaining weighted average useful
life in years............................................. 8 8
The increase in indefinite-lived intangibles was primarily due to the purchase of distribution rights for Seattle Best
Coffeeยปproducts in Canada as well as the CEC acquisition (see Note 2). The increase in definite-lived intangibles
was primarily due to patents acquired in the CEC acquisition. Amortization expense for definite-lived intangibles
was $1.5 million, $1.0 million and $1.2 million during fiscal 2008, 2007 and 2006, respectively.
The following table summarizes, as of September 28, 2008, the estimated amortization expense for each of the next
five fiscal years and thereafter (in millions):
Fiscal Year Ending
2009 ................................................................... $1.7
2010 ................................................................... 1.0
2011 ................................................................... 1.0
2012 ................................................................... 0.9
2013 ................................................................... 0.9
Thereafter ............................................................... 2.8
Total ................................................................... $8.3
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