Starbucks 2009 Annual Report Download - page 70

Changes in the carrying amount of goodwill by reportable operating segment for the fiscal year ended September 27,
2009 (in millions):
United States International CPG Total
Balance as of September 28, 2008 .............. $118.1 $117.4 $31.0 $266.5
Purchase price adjustment of previous acquisitions . . — (1.2) — (1.2)
Impairment ............................... (7.0) — — (7.0)
Other .................................... — 0.8 — 0.8
Balance as of September 27, 2009 .............. $111.1 $117.0 $31.0 $259.1
United States
The impairment of $7.0 million relates to the Company’s Hawaii reporting unit as discussed further in Note 1.
International
The decrease in goodwill of $1.2 million was due to purchase price adjustments for property, plant and equipment
acquired as a part of the Coffee Vision, Inc. acquisition, completed in the fourth quarter of fiscal 2008. The increase
in goodwill of $0.8 million included in Other was due to foreign currency fluctuations.
Note 10: Debt
Debt consisted of the following (in millions):
Sep 27, 2009 Sep 28, 2008
Commercial paper program (end of period weighted average interest rate
of 3.4)% ............................................... $ — $ 413.0
Revolving credit facility (end of period weighted average interest rate of
3.5)% ................................................. — 300.0
Current portion of long-term debt .............................. 0.2 0.7
Short-term debt .......................................... 0.2 713.7
6.25% 10-year Senior Notes (due Aug 2017) ...................... 549.2 549.2
Other long-term debt........................................ 0.1 0.4
Long-term debt .......................................... 549.3 549.6
Total debt .............................................. $549.5 $1,263.3
Revolving Credit Facility and Commercial Paper Program
The Company has a $1 billion unsecured credit facility (the “credit facility”) with various banks, of which
$100 million may be used for issuances of letters of credit. The credit facility is available for working capital, capital
expenditures and other corporate purposes, which may include acquisitions and share repurchases. The credit
facility is currently set to terminate in August 2011. On October 31, 2008, the Company entered into an amendment
to its facility that, among other changes, increased the interest rate range for borrowings under the credit facility to
0.21% to 0.67% over LIBOR or the greater of the bank prime rate or the Federal Funds Rate plus 0.50%. The
specific spread over LIBOR will continue to depend upon the Company’s long-term credit ratings assigned by
Moody’s and Standard & Poor’s rating agencies and the Company’s coverage ratio. The credit facility contains
provisions requiring the Company to maintain compliance with certain covenants, including a minimum fixed
charge coverage ratio which measures the Company’s ability to cover financing expenses.
Under the Company’s commercial paper program it may issue unsecured commercial paper notes, up to a maximum
aggregate amount outstanding at any time of $1 billion, with individual maturities that may vary, but not exceed
397 days from the date of issue. The program is backstopped by the Company’s credit facility, and the combined
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