Starbucks 2008 Annual Report Download - page 70

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equivalents, available-for-sale securities, borrowings under the commercial paper program and revolving credit
facility and proceeds from sale of the notes, and were part of the Company’s active capital management program. As
of September 28, 2008, approximately 6.3 million shares remained available for repurchase, under current
authorizations.
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.
Comprehensive income, net of related tax effects, was as follows (in millions):
Fiscal Year Ended Sep 28, 2008 Sep 30, 2007 Oct 1, 2006
Net earnings .................................... $315.5 $672.6 $564.3
Unrealized holding gains/(losses) on available-for-sale
securities, net of tax (provision)/benefit of $2.4, ($0.2)
and ($1.3) in 2008, 2007 and 2006, respectively ...... (4.0) 0.3 2.2
Unrealized holding gains/(losses) on cash flow hedging
instruments, net of tax (provision)/benefit of ($0.4),
$7.5 and $1.6 in 2008, 2007 and 2006, respectively . . . 0.7 (12.8) (2.8)
Unrealized holding losses on net investment hedging
instruments, net of tax benefit of $0.6 and $5.2 in 2008
and 2007, respectively ......................... (0.9) (8.8) —
Reclassification adjustment for net (gains)/losses realized
in net earnings for available-for-sale securities, net of
tax provision of $1.1 in 2006 .................... — — (1.8)
Reclassification adjustment for net losses realized in net
earnings for cash flow hedges, net of tax benefit of
$3.0, $0.5 and $2.4 in 2008, 2007 and 2006,
respectively ................................. 5.0 0.9 4.2
Net unrealized gain/(loss) .......................... 0.8 (20.4) 1.8
Translation adjustment, net of tax benefit/(provision) of
$0.3, $—, and ($1.8) in 2008, 2007, and 2006,
respectively ................................... (7.0) 37.7 14.6
Total comprehensive income ........................ $309.3 $689.9 $580.7
The unfavorable translation adjustment change during fiscal 2008 of $7.0 million was primarily due to the
strengthening of the US dollar against several currencies including the Australian dollar, Korean won and Canadian
dollar. The favorable translation adjustment change during fiscal 2007 of $37.7 million was primarily due to the
weakening of the US dollar against several currencies including the euro, Canadian dollar and British pound
sterling. The favorable translation adjustment change during fiscal 2006 of $14.6 million was primarily due to the
weakening of the US dollar against several currencies including British pound sterling, the euro and Canadian
dollar.
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