Starbucks 2009 Annual Report Download - page 72

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future costs of removing leasehold improvements at the termination of leases for certain stores and administrative
facilities. Minority interest represents the collective ownership interests of minority shareholders for operations
accounted for under the consolidation method, in which Starbucks owns less than 100% of the equity interest. The
other remaining long-term liabilities generally include obligations to be settled or paid for one year beyond each
period presented, for items such as hedging instruments and the long-term portion of capital lease obligations.
Note 12: Leases
In the fourth quarter of fiscal 2009 Starbucks determined that there was an immaterial classification error in the
lease footnote of the 2008 10-K. Amounts of $25.7 million and $22.7 million for the fiscal years ended
September 28, 2008 and September 30, 2007, respectively, were incorrectly classified as contingent rent that
should havebeen classified as minimum rentals. The total for rent expense under operating leases was not impacted.
The following table reflects the corrected amounts for fiscal 2008 and 2007.
Rental expense under operating lease agreements (in millions):
Fiscal Year Ended Sep 27, 2009 Sep 28, 2008 Sep 30, 2007
Minimum rentals ................................ $690.0 $709.1 $609.9
Contingent rentals ............................... 24.7 32.0 28.2
Total ......................................... $714.7 $741.1 $638.1
Minimum future rental payments under noncancelable operating leases as of September 27, 2009 (in millions):
Fiscal Year Ending
2010 ................................................................ $ 706.7
2011 ................................................................ 669.0
2012 ................................................................ 612.3
2013 ................................................................ 551.0
2014 ................................................................ 488.1
Thereafter ............................................................ 1,362.1
Total minimum lease payments . ........................................... $4,389.2
The Company has subleases related to certain of its operating leases. During fiscal 2009, 2008 and 2007, the
Company recognized sublease income of $7.1 million, $3.5 million and $3.6 million, respectively.
The Company had capital lease obligations of $7.8 million and $6.7 million as of September 27, 2009 and
September 28, 2008, respectively. Capital lease obligations expire at various dates, with the latest maturity in 2015.
The current portion of the total obligation is included in Other accrued expenses and the remaining long-term
portion is included in Other long-term liabilities on the consolidated balance sheets. Assets held under capital leases
are included in Net property, plant and equipment on the consolidated balance sheets.
The Company had $76.2 million and $91.1 million in prepaid 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 has
authorized 7.5 million shares of preferred stock, none of which was outstanding at September 27, 2009.
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