Starbucks 2009 Annual Report Download - page 43

did not repurchase any shares in fiscal 2009 under the Company’s share repurchase program; however, the
Company will continue to evaluate share repurchases and cash dividends in the future as a use for excess cash
generated by the business.
Other than normal operating expenses, cash requirements for fiscal 2010 are expected to consist primarily of capital
expenditures for remodeling and refurbishment of, and equipment upgrades for, existing Company-operated retail
stores; systems and technology investments in the stores and in the support infrastructure; and new Company-
operated retail stores. Total capital expenditures for fiscal 2010 are expected to range from $500 million to
$550 million.
Cash provided by operating activities was $1.4 billion for fiscal 2009 compared to $1.3 billion for fiscal 2008. Cash
used by investing activities for fiscal 2009 totaled $421.1 million compared to $1.1 billion in fiscal 2008. The
decrease was due 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 the credit facility totaling $713.1 million.
As of September 27, 2009, a total of $14.1 million in letters of credit were outstanding under the credit facility,
leaving $985.9 million of capacity available under the $1 billion combined commercial paper program and
revolving credit facility.
The following table summarizes the Company’s contractual obligations and borrowings as of September 27, 2009,
and the timing and effect that such commitments are expected to have on the Company’s liquidity and capital
requirements in future periods (in millions):
Contractual Obligations
(1)
Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years
Payments Due by Period
Debt obligations
(2)
....................... $ 825.4 $ 34.7 $ 68.8 $ 68.8 $ 653.1
Operating lease obligations
(3)
............... 4,389.2 706.7 1,281.3 1,039.1 1,362.1
Purchase obligations
(4)
.................... 308.3 264.1 34.2 9.5 0.5
Other obligations
(5)
....................... 109.7 3.3 22.8 6.8 76.8
Total ................................. $5,632.6 $1,008.8 $1,407.1 $1,124.2 $2,092.5
(1)
Income tax liabilities for uncertain tax positions were excluded as the Company is not able to make a reasonably
reliable estimate of the amount and period of related future payments. As of September 27, 2009, the Company
had $49.1 million of gross unrecognized tax benefits for uncertain tax positions.
(2)
Debt amounts include principal maturities and expected interest payments on the long-term debt.
(3)
Amounts include the direct lease obligations, excluding any taxes, insurance and other related expenses.
(4)
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding
on Starbucks and that specify all significant terms. Purchase obligations relate primarily to green coffee.
(5)
Other obligations include other long-term liabilities primarily consisting of asset retirement obligations, capital
lease obligations and hedging instruments.
Starbucks expects to fund these commitments primarily with operating cash flows generated in the normal course of
business, as well as ongoing borrowings under the combined commercial paper program and revolving credit
facility.
Off-Balance Sheet Arrangement
The Company’s off-balance sheet arrangements relate to certain guarantees and are detailed in Note 17 to the
consolidated financial statements in this 10-K.
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