Starbucks 2009 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2009 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

cause delays in 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 are designed to comply with all applicable laws and regulations, including those
imposed by the SEC, NASDAQ, and foreign countries, as well as applicable labor laws. Additional legal and
regulatory requirements, together with the fact that foreign laws occasionally conflict with domestic laws, increase
the complexity of the regulatory environment in which the Company operates and the related cost of compliance.
Failure to comply with the various laws and regulations may result in damage to Starbucks reputation, civil and
criminal liability, fines and penalties, increased cost of regulatory compliance and restatements of the Company’s
financial statements.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Properties used by Starbucks in connection with its roasting and distribution operations:
Location Approximate Size
in Square Feet Owned or
Leased Purpose
Kent, WA ....................... 332,000 Owned Roasting and distribution
Kent, WA ....................... 215,000 Leased Warehouse
Renton, WA ..................... 125,000 Leased Warehouse
York County, PA .................. 450,000 Owned Roasting and distribution
York County, PA .................. 298,000 Owned Warehouse
York County, PA .................. 118,000 Leased Warehouse
Carson Valley, NV................. 360,000 Owned Roasting and distribution
Sandy Run, SC ................... 117,000 Owned Roasting and distribution
Portland, OR ..................... 68,000 Leased Warehouse
Basildon, United Kingdom........... 142,000 Leased Warehouse and distribution
Amsterdam, Netherlands ............ 97,000 Leased Roasting and distribution
The Company leases approximately 1.0 million square feet of office space in Seattle, Washington for corporate
administrative purposes. Also in Seattle, Washington, the Company owns a 205,000 square foot office building
(previously occupied by the Company, but now leased to other parties) and an adjacent 285,000 square foot office
building, which is currently being marketed for lease.
As of September 27, 2009, Starbucks had more than 8,800 Company-operated retail stores, almost all of which are
leased. The Company also leases space in approximately 130 additional locations for regional, district and other
administrative offices, training facilities and storage, not including certain seasonal retail storage locations.
Item 3. Legal Proceedings
See discussion of Legal Proceedings in Note 17 to the consolidated financial statements included in Item 8 of this
Report.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders during the fourth fiscal quarter of 2009.
14