Starbucks 2009 Annual Report Download

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Starbucks Corporation Fiscal 2009 Annual Report

Table of contents

  • Page 1
    Starbucks Corporation Fiscal 2009 Annual Report

  • Page 2
    ... Fiscal Year End (Company-Operated and Licensed Stores) Net Revenues (In Billions) International United States 16,680 15,011 12,440 16,635 $9.4 $7.8 $6.4 $10.4 $9.8 10,241 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Comparable Store Sales Growth (Company-Operated Stores Open...

  • Page 3
    ...areas of the business and put sharp focus on unit economics. We focused on operational excellence-from supply chain to back-end IT systems to store operations. We also developed a better go-tomarket engine, with stronger creative execution and more effective channels to reach our customers. Together...

  • Page 4
    ... the largest market for Starbucks outside the U.S. As part of our international strategy, we will also seize opportunities to move beyond our retail stores. Extending our profitable global consumer products group allows us to reach more customers in more places, and we plan to grow this business at...

  • Page 5
    ...business day of the registrant's most recently completed second fiscal quarter, based upon the closing sale price of the registrant's common stock on March 27, 2009 as reported on the NASDAQ Global Select Market was $8.4 billion. As of November 13, 2009, there were approximately 740.2 million shares...

  • Page 6

  • Page 7
    ... Related Shareholder Matters and Issuer Purchases of Equity Securities...Item 6 Selected Financial Data ...Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations ...Item 7A Quantitative and Qualitative Disclosures About Market Risk ...Item 8 Financial Statements...

  • Page 8
    (This page intentionally left blank)

  • Page 9
    ... expansion of its retail and licensed store base, to introduce relevant new products in all its channels, and to selectively develop new channels of distribution. The Company's Global Responsibility strategy and commitments related to coffee and the communities it does business in, as well as its...

  • Page 10
    ... of coffee in each of its target markets by selling the finest quality coffee and related products, and by providing each customer a unique Starbucks Experience. The Starbucks Experience is built upon superior customer service as well as clean and well-maintained Company-operated retail stores that...

  • Page 11
    ...: Net Stores Opened (Closed) During the Fiscal Year Ended(1) Sep 27, 2009 Sep 28, 2008 Stores Open as of Sep 27, 2009 Sep 28, 2008 US(2) ...International(3): Canada ...United Kingdom ...China ...Germany...Thailand ...Singapore ...Australia ...Other ...Total International ...Total Company-operated...

  • Page 12
    ... sales mix by product type for Company-operated stores: Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 Sep 30, 2007 Beverages ...Food ...Coffee-making equipment and other merchandise . . Whole bean coffees ... ... 76% 18% 3% 3% 100% 76% 17% 4% 3% 100% 75% 17% 5% 3% 100% Total ...Starbucks Card...

  • Page 13
    ... Kraft manages all distribution, marketing, advertising and promotion of these products. The Company sells packaged coffee and tea internationally both directly to warehouse club stores, such as Costco Wholesale Corporation, and to grocery stores through a licensing relationship with Kraft in Canada...

  • Page 14
    ... channels. Beverage ingredients other than coffee and milk, including leaf teas and the Company's selection of ready-to-drink beverages, are purchased from several specialty suppliers, usually under long-term supply contracts. Food products, such as fresh pastries, breakfast sandwiches and lunch...

  • Page 15
    ... Research and Development Starbucks research and development teams are responsible for the technical development of food and beverage products and new equipment. The Company spent approximately $6.5 million, $7.2 million and $7.0 million during fiscal 2009, 2008 and 2007, respectively, on technical...

  • Page 16
    ... Company's corporate governance policies, code of ethics and Board committee charters and policies are also posted on the Investor Relations section of Starbucks website at http://investor.starbucks.com. The information on the Company's website is not part of this or any other report Starbucks files...

  • Page 17
    ... and store design elements, and new training and tools for the Company's store partners to help them give customers a superior experience; • balancing disciplined global store growth while meeting target store-level unit economics in a given market; • executing a multi-channel advertising and...

  • Page 18
    ... embrace Starbucks products to the same extent as consumers in the Company's existing markets. Occupancy costs and store operating expenses are also sometimes higher internationally than in the US due to higher rents for prime store locations or costs of compliance with country-specific regulatory...

  • Page 19
    ... selling high-quality specialty coffee beverages at a low cost has attracted Starbucks customers and could, if the numbers become large enough, adversely affect the Company's sales and results of operations. Similarly, continued competition from well-established competitors in international markets...

  • Page 20
    ... markets. Licensees are often authorized to use the Starbucks logo and provide Starbucks-branded beverages, food and other products directly to customers. The Company provides training and support to, and monitors the operations of, these business partners, but the product quality and service...

  • Page 21
    ... on information technology systems across its operations, including for management of its supply chain, point-of-sale processing in its stores, and various other processes and transactions. The Company's ability to effectively manage its business and coordinate the production, distribution and sale...

  • Page 22
    ...product sales and reduced efficiency of the Company's operations, and significant capital investments could be required to remediate the problem. • Failure of the Company to comply with applicable laws and regulations could harm its business and financial results. Starbucks policies and procedures...

  • Page 23
    ...Coffee president, Global Development chief marketing officer executive vice president, chief financial officer and chief administrative officer executive vice president, general counsel and secretary executive vice president, Global Supply Chain Operations executive vice president, Partner Resources...

  • Page 24
    ... senior vice president, Global Manufacturing Operations. From March 1999 to February 2007, Mr. Gibbons was executive vice president, Supply Chain, of The Glidden Company, a subsidiary of ICI Americas, Inc. Kalen Holmes joined Starbucks in November 2009 as executive vice president, Partner Resources...

  • Page 25
    ... Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities SHAREHOLDER INFORMATION MARKET INFORMATION AND DIVIDEND POLICY The Company's common stock is traded on NASDAQ, under the symbol "SBUX." Quarterly high and low closing sale prices per share of the Company's common stock...

  • Page 26
    ... indicative of future price performance. $250 $200 Starbucks Corporation S&P 500 NASDAQ Composite S&P Consumer Discretionary $150 $100 $50 $0 10/3/2004 10/2/2005 10/1/2006 10/3/04 9/30/2007 10/2/05 10/1/06 9/28/2008 9/30/07 9/27/2009 9/28/08 9/27/09 Starbucks Corporation S&P 500 NASDAQ...

  • Page 27
    ...Net cash provided by operating activities ...Capital expenditures (additions to property, plant and equipment) ...BALANCE SHEET Total assets ...Short-term borrowings ...Long-term debt (including current portion) ...Shareholders' equity ...STORE INFORMATION Percentage change in comparable store sales...

  • Page 28
    ... Year Ended (1) Sep 27, 2009 (52 Wks) Sep 28, 2008 (52 Wks) Sep 30, 2007 (52 Wks) Oct 1, 2006 (52 Wks) Oct 2, 2005 (52 Wks) Stores open at year end: United States Company-operated stores ...Licensed stores ...International Company-operated stores ...Licensed stores ...Total ...(1) (2) 6,764...

  • Page 29
    ... products and sales channels. For example, Starbucks VIATM Ready Brew coffee was launched in fiscal 2009 and is designed to capture a significant share of both the $21 billion global instant coffee category and the singleserve market. The Company intends to drive sales within the retail store...

  • Page 30
    ... Coffee Partnership with the Pepsi-Cola Company for manufacturing and distribution of ready-to-drink beverages. This operating model allows the CPG segment to leverage the business partners' existing infrastructures and to extend the Starbucks brand in an efficient way. Most of the customer revenues...

  • Page 31
    ... cost structure in fiscal 2009, with the initiatives focused on store closures, headcount reductions, in-store efficiencies and supply chain improvements. Consolidated results of operations (in millions): Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 % Change Sep 27, Sep 28, 2009 2008 % of Total Net...

  • Page 32
    ... labor efficiency and reduced product waste in Company-operated stores, partially offset by increased restructuring charges. Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 % Change Sep 27, Sep 28, 2009 2008 % of Total Net Revenues Operating income ...Interest income and other, net ...Interest expense...

  • Page 33
    ...-operated retail stores. Specialty operations within the US include licensed retail stores and other initiatives related to the Company's core business. Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 % Change Sep 27, Sep 28, 2009 2008 As a % of US Total Net Revenues Net revenues: Company-operated...

  • Page 34
    ... in average value per transaction. Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 % Change Sep 27, Sep 28, 2009 2008 As a % of US Total Net Revenues Cost of sales including occupancy costs ...Store operating expenses ...Other operating expenses ...Depreciation and amortization expenses ...General...

  • Page 35
    ... foodservice business, which sells coffee and other related products to institutional foodservice companies with the majority of its sales through national broadline distribution networks. Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 % Change Sep 27, Sep 28, 2009 2008 As a % of CPG Total Net Revenues...

  • Page 36
    ... lower compensation costs and lower marketing expenses. Unallocated Corporate Unallocated corporate expenses pertain to corporate administrative functions that support, but are not specifically attributable to the Company's operating segments. Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 % Change Sep...

  • Page 37
    ... in the foodservice business in the US. Fiscal Year Ended Sep 28, 2008 Sep 30, 2007 % Change Sep 28, Sep 30, 2008 2007 % of Total Net Revenues Cost of sales including occupancy costs ...Store operating expenses ...Other operating expenses ...Depreciation and amortization expenses ...General and...

  • Page 38
    ... US. United States Fiscal Year Ended Sep 28, 2008 Sep 30, 2007 % Change Sep 28, Sep 30, 2008 2007 As a % of US Total Net Revenues Net revenues: Company-operated retail ...$6,997.7 Specialty: Licensing ...504.2 Other ...30.1 Total specialty ...534.3 Total net revenues ...$7,532.0 $6,560.9 439.1 22...

  • Page 39
    ... the softer sales, higher payroll-related expenditures, and charges from canceling future store sites and asset impairments. International Fiscal Year Ended Sep 28, 2008 Sep 30, 2007 % Change Sep 28, Sep 30, 2008 2007 As a % of International Total Net Revenues Net revenues: Company-operated retail...

  • Page 40
    ... product sales and royalty revenues from opening 550 new licensed retail stores in fiscal 2008. Fiscal Year Ended Sep 28, 2008 Sep 30, 2007 % Change Sep 28, Sep 30, 2008 2007 As a % of International Total Net Revenues Cost of sales including occupancy costs ...Store operating expenses ...Other...

  • Page 41
    ... and product sales in the international ready-to-drink business and increased sales of US packaged tea and International club packaged coffee. Fiscal Year Ended Sep 28, 2008 Sep 30, 2007 % Change Sep 28, Sep 30, 2008 2007 As a % of CPG Total Net Revenues Cost of sales ...Other operating expenses...

  • Page 42
    ... to May 2009. In the latter half of the year the Company reduced its total short-term borrowings to a zero balance due to strong operating cash flows and lower capital spending on new Company-operated stores. Management is unlikely to make significant use of its commercial paper program until its...

  • Page 43
    ...to lower capital expenditures in fiscal 2009 compared to fiscal 2008 due to opening significantly fewer new Company-operated stores. Cash used by financing activities for the year ended September 27, 2009 totaled $642.2 million, with net repayments of commercial paper and short-term borrowings under...

  • Page 44
    ...10% change in the underlying commodity prices of its commodity hedges, as of the end of fiscal 2009, and determined that such a change would not have a significant effect on the fair value of these instruments. Foreign Currency Exchange Risk The majority of the Company's revenue, expense and capital...

  • Page 45
    ... equity prices of its investments as of the end of fiscal 2009, and determined that such a change would not have a significant effect on the fair value of these instruments. Interest Rate Risk The Company utilizes short-term and long-term financing and may use interest rate hedges to manage...

  • Page 46
    ... near term, management believes the effect on the expense recognized for fiscal 2009 would not have been material. Operating Leases Starbucks leases retail stores, roasting and distribution facilities and office space under operating leases. The Company provides for an estimate of asset retirement...

  • Page 47
    ... financial statements in this 10-K. Item 7A. Quantitative and Qualitative Disclosures About Market Risk The information required by this item is incorporated by reference to the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations - Commodity Prices...

  • Page 48
    ... per share) Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 Sep 30, 2007 Net revenues: Company-operated retail ...$8,180.1 Specialty: Licensing ...1,222.3 Foodservice and other...372.2 Total specialty ...Total net revenues ...Cost of sales including occupancy costs ...Store operating expenses...

  • Page 49
    STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (In millions, except per share data) Sep 27, 2009 Sep 28, 2008 ASSETS Current assets: Cash and cash equivalents ...$ 599.8 Short-term investments - available-for-sale securities ...21.5 Short-term investments - trading securities ...44.8 Accounts ...

  • Page 50
    ... ...End of period ...$ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Net change in short-term borrowings and commercial paper for the period ...$ Cash paid during the period for: Interest, net of capitalized interest ...$ Income taxes ...$ See Notes to Consolidated Financial Statements. 42

  • Page 51
    ... . 2.8 . (12.2) . 735.5 4.9 2.5 Comprehensive income ...Stock-based compensation expense ...Exercise of stock options, including tax benefit of $5.3 ...Sale of common stock, including tax benefit of $0.1 ... Balance, September 27, 2009 ...742.9 See Notes to Consolidated Financial Statements. 43

  • Page 52
    ..., cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through its Company-operated retail stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels such as...

  • Page 53
    ...-term maturity of those instruments. The fair value of the Company's investments in marketable debt and equity securities, equity mutual funds and equity exchange-traded funds, is based upon the quoted market price on the last business day of the fiscal year. Where an observable quoted market price...

  • Page 54
    ... the consolidated statements of earnings. Forward contract effectiveness for cash flow hedges is calculated by comparing the fair value of the contract to the change in value of the anticipated transaction using forward rates on a monthly basis. For net investment hedges, the spot-to-spot method is...

  • Page 55
    ... fair value. Starbucks conducted its annual test for its consolidated entities in the third fiscal quarter, resulting in $7 million of goodwill impairment in fiscal 2009 related to the US operating segment's Hawaii reporting unit, which is comprised of retail store operations. The current and...

  • Page 56
    ... terms. Shipping charges billed to customers are also recognized as revenue, and the related shipping costs are included in Cost of sales including occupancy costs on the consolidated statements of earnings. Specific to retail store licensing arrangements, initial nonrefundable development fees...

  • Page 57
    ... and 2007, respectively. As of September 27, 2009 and September 28, 2008, $7.2 million and $8.8 million, respectively, of capitalized advertising costs were recorded in Prepaid expenses and other current assets, and Other assets on the consolidated balance sheets. Research and Development Starbucks...

  • Page 58
    ... such conditions, the Company records an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. The liability is estimated based on a number of assumptions requiring management's judgment, including store closing costs, cost inflation rates...

  • Page 59
    ... to position the Company for long-term profitable growth. These efforts have been focused on both the global Company-operated store base and the nonretail support organization. Starbucks actions to rationalize its store portfolio have included plans (announced in July 2008 and January 2009) to close...

  • Page 60
    ... termination agreement to the date of closure. Non-cash charges and credits for Lease exit and other related costs primarily represent deferred rent balances recognized as expense credits at the cease-use date. Includes $1.0 million of employee termination costs for the CPG segment for fiscal 2009...

  • Page 61
    ... Losses Fair Value September 27, 2009 Short-term investments - available-for-sale securities: Corporate debt securities ...Government treasury securities ...Total ...Short-term investments - trading securities ...Total short-term investments ...Long-term investments - available-for-sale securities...

  • Page 62
    ... fiscal years 2009, 2008 or 2007. Trading securities Trading securities are comprised of marketable equity mutual funds and equity exchange-traded funds that approximate a portion of the Company's liability under the Management Deferred Compensation Plan ("MDCP"), a defined contribution plan. The...

  • Page 63
    ... discontinued in fiscal years 2009 and 2008 was insignificant. Outstanding contracts will expire within 36 months. Net Investment Hedges Net investment derivative instruments are used to hedge the Company's equity method investment in Starbucks Coffee Japan, Ltd. ("Starbucks Japan") as well as the...

  • Page 64
    ...2009 (in millions): Contract Type Assets Balance Sheet Location Fair Value Liabilities Balance Sheet Location Fair Value Derivatives designated as hedging instrument for accounting purposes: Cash Flow Hedges: Foreign Exchange ...Prepaid expenses and other current assets $ 6.3 Other accrued expenses...

  • Page 65
    ... 2009, $0.3 million of gain was recognized in Net interest income and other related to the ineffective portion. The Company entered into, dedesignated and settled forward interest rate contracts to hedge movements in interest rates prior to issuing its $550 million 6.25% Senior Notes in fiscal 2007...

  • Page 66
    ...internally developed valuation model, whose inputs include interest rate curves, credit and liquidity spreads, and effective maturity. Derivative assets and liabilities include foreign currency forward contracts, commodity swaps and futures contracts. Where applicable, the Company uses quoted prices...

  • Page 67
    ...Equity method investments ...Cost method investments ...Total ...Equity Method Investments Equity investees and ownership interests by reportable operating segment: $313.2 39.1 $352.3 $267.9 34.7 $302.6 Sep 27, 2009 Sep 28, 2008 United States StarCon, LLC ...International Starbucks Coffee Korea...

  • Page 68
    ... the consolidated balance sheets from equity investees primarily related to product sales and store license fees. As of September 27, 2009, the aggregate market value of the Company's investment in Starbucks Japan was approximately $241 million, based on its available quoted market price. Summarized...

  • Page 69
    ...over financial and operating policies, additional investments may require the retroactive application of the equity method of accounting. Note 8: Property, Plant and Equipment Property, plant and equipment (in millions): Sep 27, 2009 Sep 28, 2008 Land ...Buildings ...Leasehold improvements ...Store...

  • Page 70
    ... credit facility (end of period weighted average interest rate of 3.5)% ...Current portion of long-term debt ...Short-term debt ...6.25% 10-year Senior Notes (due Aug 2017) ...Other long-term debt...Long-term debt ...Total debt ...Revolving Credit Facility and Commercial Paper Program The Company...

  • Page 71
    ... paper program. As of September 28, 2008, letters of credit totaling $15.9 million were outstanding. Long-term Debt In August 2007, the Company issued $550 million of 6.25% Senior Notes (the "notes") due in August 2017, in an underwritten registered public offering. Interest is payable semi-annually...

  • Page 72
    ... rent included in Prepaid expenses and other current assets on the consolidated balance sheets as of September 27, 2009 and September 28, 2008, respectively. Note 13: Shareholders' Equity In addition to 1.2 billion shares of authorized common stock with $0.001 par value per share, the Company...

  • Page 73
    ...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 (in millions): Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 Sep 30, 2007 Net earnings...

  • Page 74
    ...consolidated financial statements (in millions): Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 Sep 30, 2007 Stock option expense ...RSU expense ...ESPP expense ...Total stock-based compensation expense on the consolidated statements of earnings ...Total related tax benefit ...Stock-based compensation...

  • Page 75
    ...in the 2009 stock option exchange program described above): Fiscal Year Ended Employee Stock Options Granted During the Period 2009 2008 2007 2009 ESPP 2008 2007 Expected term (in years) ...4.9 4.7 4.7 0.25 - 0.5 Expected stock price volatility ...44.5% 29.3% 28.9% 37% - 64% Risk-free interest rate...

  • Page 76
    ...the last business day of the period indicated. The closing per share market value of the Company's stock on September 25, 2009 was $19.83. As of September 27, 2009, total unrecognized stock-based compensation expense, net of estimated forfeitures, related to nonvested stock options was approximately...

  • Page 77
    ...fair market value of the stock on the first or last business day of the quarterly offering period. Summary of transactions under this ESPP from fiscal year 2007 through 2009 (shares in millions): Shares Average Price Per Share Issued during fiscal year 2007...Issued during fiscal year 2008...Issued...

  • Page 78
    ... income tax rate with the Company's effective income tax rate: Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 Sep 30, 2007 Statutory rate...State income taxes, net of federal income tax benefit ...Foreign earnings taxed at lower rates ...Domestic production activity deduction ...Credit resulting from...

  • Page 79
    ...Sep 27, 2009 Sep 28, 2008 Deferred tax assets: Accrued occupancy costs ...Accrued compensation and related costs...Other accrued expenses ...Asset retirement obligation asset ...Deferred revenue ...Asset impairments ...Tax credits ...Stock based compensation ...Other ...Total ...Valuation allowance...

  • Page 80
    ... to the consolidated financial statements. Note 16: Earnings per Share Sep 27, 2009 Sep 28, 2008 Sep 30, 2007 Calculation of net earnings per common share ("EPS") - basic and diluted (in millions, except EPS): Fiscal Year Ended Net earnings ...Weighted average common shares and common stock units...

  • Page 81
    ...Company's management reviews financial information for operational decision making purposes. Starbucks has three reportable operating segments: US, International and CPG. In the fourth fiscal quarter of 2009, the Company changed the composition of its reportable segments. The US foodservice business...

  • Page 82
    ... drinks, and Discoveries» chilled cup coffee, as well as Starbucks» super-premium ice creams through its marketing and distribution agreements and joint ventures. The US foodservice business sells coffee and other related products to institutional foodservice companies with the majority of its...

  • Page 83
    ... other intangible assets. Corporate assets are primarily comprised of cash and investments, assets of the corporate headquarters and roasting facilities, and inventory. The methodology used to identify specific assets with the segments in fiscal 2009 was applied to the fiscal 2008 and 2007 amounts...

  • Page 84
    ...below reconciles the total of the reportable segments' operating income to the Company's consolidated earnings before income taxes (in millions): Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 Sep 30, 2007 Operating income ...Interest income and other, net ...Interest expense ...Earnings before income...

  • Page 85
    Note 19: Subsequent Event On September 30, 2009, Starbucks acquired 100 percent ownership of the Company's business in France, converting it from a 50% joint venture with Sigla S.A. (Grupo Vips) of Spain to a Company-operated market. Starbucks simultaneously sold its 50% ownership interests in the...

  • Page 86
    ... 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 September 27, 2009 and September 28, 2008, and the related consolidated statements of...

  • Page 87
    ... controls and procedures are also designed to ensure that information required to be disclosed in the reports the Company files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its principal executive officer and principal financial officer...

  • Page 88
    ...of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Starbucks Corporation Seattle, Washington We have audited the internal control over financial reporting of Starbucks Corporation and subsidiaries (the "Company") as of September 27, 2009, based on criteria...

  • Page 89
    ... Company's chief executive officer, chief financial officer or controller, the Company will disclose the nature of the amendment or waiver, its effective date and to whom it applies on its website or in a report on Form 8-K filed with the SEC. Item 11. Executive Compensation The information required...

  • Page 90
    ... 30, 2007; • Consolidated Statements of Shareholders' Equity for the fiscal years ended September 27, 2009, September 28, 2008 and September 30, 2007; • Notes to Consolidated Financial Statements; and • Reports of Independent Registered Public Accounting Firm 2. Financial Statement Schedules...

  • Page 91
    ... Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. STARBUCKS CORPORATION By: /s/ Howard Schultz Howard Schultz chairman, president and chief executive officer November 20, 2009 POWER...

  • Page 92
    Signature Title By: /s/ Olden Lee Olden Lee By: /s/ Sheryl Sandberg Sheryl Sandberg By: /s/ James G. Shennan Jr. James G. Shennan Jr. By: /s/ Javier G. Teruel Javier G. Teruel By: /s/ Myron E. Ullman III Myron E. Ullman III By: /s/ Craig E. Weatherup Craig E. Weatherup director director ...

  • Page 93
    ... Management Deferred Compensation Plan Starbucks Corporation 1997 Deferred Stock Plan Starbucks Corporation UK Share Save Plan Starbucks Corporation Directors Deferred Compensation Plan, as amended and restated effective September 29, 2003 Consulting Agreement dated April 6, 2009 between Starbucks...

  • Page 94
    ... 18, 2009 2005 Key Employee Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan, as amended and restated effective November 15, 2005 2005 Non-Employee Director Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan Stock Option Grant Agreement for Purchase...

  • Page 95
    ... 6, 2008 between Starbucks Corporation and Troy Alstead Time Vested Restricted Stock Unit Agreement (US) under Starbucks Corporation 2005 Long-Term Equity Incentive Plan Time Vested Restricted Stock Unit Agreement (International) under Starbucks Corporation 2005 Long-Term Equity Incentive Plan...

  • Page 96
    ... Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 USC. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - - - - X - - - - X - - - - X * Denotes a management contract or compensatory plan or arrangement. 88

  • Page 97
    Market Information Starbucks common stock is traded on the NASDAQ Global Select Market ("NASDAQ"), under the symbol SBUX. The following table shows the quarterly high and low closing sale prices per share of the Company's common stock as reported by NASDAQ for each quarter during the last two fiscal...

  • Page 98
    ... our business, and introducing relevant innovation-while continuously enhancing the Starbucks Experience- which will continue to differentiate Starbucks for years to come. To minimize our environmental impact, the Starbucks Corporation Fiscal 2009 Annual Report, not the 10-K, was printed on paper...