Starbucks 2009 Annual Report Download - page 47

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Income Taxes
Starbucks recognizes deferred tax assets and liabilities based on the differences between the financial statement
carrying amounts and the tax basis of assets and liabilities and accrues for uncertain tax positions. Deferred tax
assets and liabilities are measured using current enacted tax rates in effect for the years in which those temporary
differences are expected to reverse. Judgment is required in determining the provision for income taxes and related
accruals, deferred tax assets and liabilities. These include establishing a valuation allowance related to the ability to
realize certain deferred tax assets. Accounting for uncertain tax positions requires significant judgments, including
estimating the amount, timing and likelihood of ultimate settlement. Although the Company believes that its
estimates are reasonable, actual results could differ from these estimates.
RECENT ACCOUNTING PRONOUNCEMENTS
See Note 1 to the consolidated 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, Availability
and General Risk Conditions” and “Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Financial Risk Management” in Item 7 of this Report.
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