Starbucks 2011 Annual Report Download

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Reported highest annual revenue ever: $11.7 billion • Introduced Starbucks® Blonde Roast • Global
Month of Service: more than 156,000 hours of community service, 60,000 people in 30 countries completing
more than 1,400 community-service projects • Entered super-premium juice segment through acquisition
of Evolution Fresh • Partnered with DonorsChoose.org to bring $1 million to support local schools
and students • $250 million Starbucks VIA® systemwide sales • Youth Action Grants engaged more than 50,000
young people in community activities • Opened 500th store in mainland China • Signed agreement to launch
Starbucks® K-Cup® Packs • Create Jobs for USA: inspired Starbucks customers, partners and concerned
citizens to support community business lending • Opened 899 new stores around the world • Guatemala
Education Initiative: collaborated with Save the Children to help
farmers‘ children and schools • 20 million mobile payments
• Developed Crenshaw and Harlem community stores—
Starbucks will make a contribution to local nonprofi ts
for each transaction in these stores • Reached 2 million Gold
Card members • Launched personalized Frappuccino®
blended beverages globally • Launched fi rst Starbucks Card in
Braille • Achieved record operating margins and EPS •
Tazo CHAI Project: strengthened communities in tea-growing
districts of Darjeeling, India, with a renewed three-year commitment
of $750,000 • Established Japan Earthquake Relief Fund as well as
Starbucks Cup Fund in Japan • Joined with American Red
Cross for ongoing relief of U.S. communities experiencing natural
disasters • Advanced recycling initiatives with a groundbreaking
Cup Summit • Served nearly 60 million customers per week • Built
new company-operated stores to the LEED® green building standard •
Seattle’s Best Coffee introduced coffee-aisle game-changer with new
“Level” system for packaged coffee • Recognized by EPA as one of Top 5
Green Power Purchasers in the U.S. • Successfully transitioned our
packaged coffee and tea business in-house to a direct distribution model • Implemented front-of-store
recycling across British Columbia, Canada • Opened 900th store in Japan • Ethically sourced more
than 80% of coffee through C.A.F.E. Practices • Celebrated 40th Anniversary • Advanced China’s
Yunnan Coffee Project • Opened 500th store in Latin America • Brought more than 100 partners to
visit coffee farms in Costa Rica and Tanzania • Returned approximately $945 million to shareholders
through share repurchases and dividends, more than doubling amount returned last year • Enhanced
partner 401(k) benefits • Entered new markets: El Salvador, Guatemala and the Netherlands
Starbucks Corporation Fiscal 2011 Annual Report

Table of contents

  • Page 1
    ... • Signed agreement to launch Starbucks® K-Cup® Packs • Create Jobs for USA: inspired Starbucks customers, partners and concerned citizens to support community business lending • Opened 899 new stores around the world • Guatemala Education Initiative: collaborated farmers' children and...

  • Page 2
    ...054 $843** $504 $562 $894** 4.9% 5.7% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Earnings per Diluted Share GAAP EPS Non-GAAP EPS Operating Cash Flow & Capital Expenditures (in Millions) Cash from Operations Capital Expenditures $1,705 $1.62 $1.52*** $1,331 $1.24 $1.23** $1,080...

  • Page 3
    ... was a remarkable year for Starbucks. Our global business delivered the highest levels of service to our customers, a truly rewarding experience to our partners (employees), and a record-level performance to shareholders. As of the end of calendar 2011, Starbucks stock price had increased 43 percent...

  • Page 4
    ... and creating customers' needs while staying true to our core values. In this regard, Starbucks performed exceptionally well in 2011. Growth on a Global Scale Around the world, our brand continues to resonate and business continues to grow. We ended fiscal 2011 with more than 17,000 stores in...

  • Page 5
    ... closing sale price of the registrant's common stock on April 1, 2011 as reported on the NASDAQ Global Select Market was $27 billion. As of November 11, 2011, there were 745.4 million shares of the registrant's Common Stock outstanding. DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive...

  • Page 6
    ... on Accounting and Financial Disclosure ...Item 9A Controls and Procedures ...Item 9B Other Information ...PART III Item 10 Directors, Executive Officers and Corporate Governance ...Item 11 Executive Compensation ...Item 12 Security Ownership of Certain Beneficial Owners and Management and Related...

  • Page 7
    ... only as of the date of this Annual Report on Form 10-K. These forward-looking statements are all based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Our actual future results and trends may differ materially depending...

  • Page 8
    ... Segment Financial Information Starbucks has three reportable operating segments: United States ("US"), International, and Global Consumer Products Group ("CPG"). Our Seattle's Best Coffee operating segment is reported in "Other" with our Digital Ventures business and unallocated corporate expenses...

  • Page 9
    ...superior customer service as well as clean and well-maintained company-operated stores that reflect the personalities of the communities in which they operate, thereby building a high degree of customer loyalty. Our strategy for expanding our global retail business is to increase our market share in...

  • Page 10
    ...-operated Starbucks stores in the US, we also provide customers free access to wireless internet. Retail sales mix by product type for company-operated stores: Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Sep 27, 2009 Beverages ...Food ...Whole bean and soluble coffees ...Coffee-making equipment...

  • Page 11
    ... a selection of Starbucks and Seattle's Best Coffee branded packaged coffees and Tazo® teas in grocery and warehouse club stores throughout the US and to grocery stores in Canada, the UK and other European countries through a distribution arrangement with Kraft Foods Global, Inc. Kraft managed the...

  • Page 12
    ... on relationships established with these suppliers, that the risk of non-delivery of sufficient fluid milk to support these retail businesses is remote. Products other than whole bean coffees and coffee beverages sold in Starbucks stores are obtained through a number of different channels. Beverage...

  • Page 13
    ... companies to support the needs of our retail stores as well as our manufacturing and distribution operations. We believe, based on relationships established with these suppliers and manufacturers, that the risk of non-delivery is remote. Competition Our primary competitors for coffee beverage sales...

  • Page 14
    ..., Starbucks Coffee China and Asia Pacific president, Channel Development and president, Seattle's Best Coffee president, Starbucks Coffee EMEA chief financial officer and chief administrative officer executive vice president, general counsel and secretary Howard Schultz is the founder of Starbucks...

  • Page 15
    ...our business, financial condition and/or results of operations: • lower customer traffic or average value per transaction, which negatively impacts comparable store sales, net revenues, operating income, operating margins and earnings per share, due to: • the impact of initiatives by competitors...

  • Page 16
    ... prices. Any resulting decreases in customer traffic and/or average value per transaction will negatively impact our financial performance as reduced revenues result in sales de-leveraging which creates downward pressure on margins. There is also a risk that if negative economic conditions persist...

  • Page 17
    ... with Kraft Foods Global, Inc.; • balancing disciplined global store growth while meeting target store-level unit economics in a given market; and • executing a multi-channel advertising and marketing campaign to effectively communicate our message directly to Starbucks consumers and employees...

  • Page 18
    ... our control, competition with locally relevant competitors or a lack of desirable real estate locations available for lease at reasonable rates, any of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revenues, operating income and earnings per share...

  • Page 19
    ... beverages, food and other products directly to customers. We provide training and support to, and monitor the operations of, these business partners, but the product quality and service they deliver may be diminished by any number of factors beyond our control, including financial pressures. We...

  • Page 20
    ... to recruit, retain and motivate management and other employees sufficient both to maintain our current business and to execute our strategic initiatives, some of which involve ongoing expansion in business channels outside of our traditional company-operated store model. Our success also depends...

  • Page 21
    ... on information technology systems across our operations, including for management of our supply chain, point-of-sale processing in our stores, Starbucks Cards, online business and various other processes and transactions. Our ability to effectively manage our business and coordinate the production...

  • Page 22
    ...sold a selection of Starbucks and Seattle's Best Coffee branded packaged coffees in grocery and warehouse club stores throughout the US, and to grocery stores in Canada, the UK and other European countries. Kraft managed the distribution, marketing, advertising and promotion of these products. Kraft...

  • Page 23
    ... is in full control of our packaged coffee business as of March 1, 2011. While Starbucks believes we have valid claims of material breach by Kraft under the Agreement that allowed us to terminate the Agreement and certain other relationships with Kraft without compensation to Kraft, there exists the...

  • Page 24
    ... Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities SHAREHOLDER INFORMATION MARKET INFORMATION AND DIVIDEND POLICY Starbucks common stock is traded on NASDAQ, under the symbol "SBUX." The following table shows the quarterly high and low sale prices per share of Starbucks...

  • Page 25
    ... paid since that date. The stock price performance shown in the graph is not necessarily indicative of future price performance. $140 $120 $100 $80 $60 $40 $20 $0 10/1/06 9/30/07 9/28/08 S&P 500 9/27/09 NASDAQ Composite 10/3/10 10/2/11 Starbucks Corporation S&P Consumer Discretionary 10...

  • Page 26
    ...Net cash provided by operating activities ...Capital expenditures (additions to property, plant and equipment) ...BALANCE SHEET Total assets ...Short-term borrowings ...Long-term debt (including current portion) ...Shareholders' equity ...STORE INFORMATION Percentage change in comparable store sales...

  • Page 27
    ... only Starbucks company-operated stores open 13 months or longer. For fiscal year 2010, comparable store sales percentages were calculated excluding the 53rd week. Comparable store sales attributable to our International segment exclude the effect of fluctuations in foreign currency exchange rates...

  • Page 28
    ... markets, and faster expansion in key emerging markets like China. Our global consumer products group ("CPG") represents another important profitable growth opportunity for us. During the second quarter, we successfully transitioned our packaged coffee and tea businesses to an in-house direct model...

  • Page 29
    ... Asia Pacific regions. We expect modest consolidated operating margin and EPS improvement compared to fiscal 2011, given our current revenue expectations, along with ongoing spend related to our expanding CPG in-house direct distribution model and higher commodity costs. We expect increased capital...

  • Page 30
    ... a selection of Starbucks and Seattle's Best Coffee branded packaged coffees and Tazo® teas in grocery and warehouse club stores throughout the US and to grocery stores in Canada, the UK and other European countries through a distribution arrangement with Kraft Foods Global, Inc. Kraft managed the...

  • Page 31
    .... Other operating expenses as a percentage of total net revenues increased 70 basis points primarily due to higher expenses to support the direct distribution model for packaged coffee and tea (approximately 40 basis points) and the impairment of certain assets in our Seattle's Best Coffee business...

  • Page 32
    ...gain recorded in the fourth quarter of fiscal 2011 related to our acquisition of the remaining ownership interest in our joint venture operations in Switzerland and Austria (approximately $55 million). Income taxes for the fiscal year ended 2011 resulted in an effective tax rate of 31.1% compared to...

  • Page 33
    ... points) driven by increased coffee costs. International Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Oct 2, Oct 3, 2011 2010 As a % of International Total Net Revenues Total net revenues ...$2,626.1 Cost of sales including occupancy costs ...$1,259.8 Store operating expenses ...773.8 Other operating...

  • Page 34
    ... Kraft for the sale of packaged Starbucks® and Seattle's Best Coffee® coffee products in grocery and warehouse club stores throughout the US, and to grocery stores in Canada, the UK and other European countries. We successfully transitioned the Tazo® tea business to a direct distribution model...

  • Page 35
    ... of the Seattle's Best Coffee operating segment, the Digital Ventures business, and expenses pertaining to corporate administrative functions that support our operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results...

  • Page 36
    ... and paper packaging product costs (approximately 50 basis points). Also contributing to the decrease were lower occupancy costs as a percentage of total net revenues (approximately 80 basis points) primarily due to sales leverage. Store operating expenses as a percentage of company-operated retail...

  • Page 37
    ... and paper packaging product costs (approximately 60 basis points). Also contributing to the decrease were lower occupancy costs as a percentage of total net revenues (approximately 100 basis points) primarily due to sales leverage. Store operating expenses as a percent of related retail revenues...

  • Page 38
    ... from supply chain efficiencies (approximately 120 basis points). Also contributing to the decrease were lower occupancy costs as a percentage of total net revenues (approximately 120 basis points) primarily due to sales leverage. Store operating expenses as a percent of related retail revenues...

  • Page 39
    ...revenues for Seattle's Best Coffee was primarily due to sales to new national accounts (contributing approximately $13 million). Operating expenses included in Other relate to Seattle's Best Coffee and Digital Ventures as well as expenses pertaining to corporate administrative functions that support...

  • Page 40
    ...manage our cash and short-term investments in order to internally fund operating needs domestically and internationally, make scheduled interest and principal payments on our borrowings, and return cash to shareholders through common stock cash dividend payments and share repurchases. Our short-term...

  • Page 41
    ... business opportunities may require additional outside funding. Other than normal operating expenses, cash requirements for fiscal 2012 are expected to consist primarily of capital expenditures for remodeling and refurbishment of, and equipment upgrades for, existing company-operated stores; systems...

  • Page 42
    ... long-term liabilities primarily consisting of asset retirement obligations, capital lease obligations and hedging instruments. (2) (3) (4) (5) Starbucks currently expects to fund these commitments with operating cash flows generated in the normal course of business. Off-Balance Sheet Arrangement...

  • Page 43
    ... of operations. For additional details see Product Supply in Item 1, as well as Risk Factors in Item 1A of this 10-K. FINANCIAL RISK MANAGEMENT Market risk is defined as the risk of losses due to changes in commodity prices, foreign currency exchange rates, equity security prices, and interest rates...

  • Page 44
    ... the consolidated balance sheets at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income. We do not hedge the interest rate exposure on our available-for-sale securities. We performed a sensitivity analysis based on a 100 basis point change in...

  • Page 45
    ...and operating expenses are based on internal projections considering a reporting unit's past performance and forecasted growth, local market economics and the local business environment impacting the reporting unit's performance. The discount rate is calculated using an estimated cost of capital for...

  • Page 46
    ... lease. For vacated locations with remaining lease commitments, we record an expense for the difference between the present value of our future lease payments and related costs (e.g., real estate taxes and common area maintenance) from the date of closure through the end of the remaining lease term...

  • Page 47
    ...estate firms; and economic conditions that can be difficult to predict. Cash flows are discounted using a rate that coincides with the remaining lease term. The liability recorded for location closures contains uncertainties because management is required to make assumptions and to apply judgment to...

  • Page 48
    ... "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...

  • Page 49
    ... 8. Financial Statements and Supplementary Data STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (In millions, except per share data) Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Sep 27, 2009 Net revenues: Company-operated stores ...Licensed stores ...CPG, foodservice and other ...Total...

  • Page 50
    ...Long-term investments - available-for-sale securities ...Equity and cost investments ...Property, plant and equipment, net ...Other assets ...Other intangible assets ...Goodwill ...TOTAL ASSETS ...LIABILITIES AND EQUITY Current liabilities: Accounts payable ...Accrued compensation and related costs...

  • Page 51
    ... income from equity investees ...Gain resulting from acquisition of joint ventures ...Stock-based compensation ...Excess tax benefit from exercise of stock options ...Other ...Cash provided/(used) by changes in operating assets and liabilities: Accounts receivable ...Inventories ...Accounts payable...

  • Page 52
    STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EQUITY (In millions) Other Accumulated Additional Other Common Stock Additional Paid-in Paid-in Retained Comprehensive Shareholders' Noncontrolling Shares Amount Capital Capital Earnings Income/(Loss) Equity Interest Total Balance, September 28, ...

  • Page 53
    STARBUCKS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Fiscal Years ended October 2, 2011, October 3, 2010 and September 27, 2009 Note 1: Summary of Significant Accounting Policies Description of Business We purchase and roast high-quality whole bean coffees that we sell, along with ...

  • Page 54
    ..., to hedge interest rates, commodity prices and foreign currency denominated revenues, purchases, assets and liabilities. We record all derivatives on the balance sheets at fair value. For a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component...

  • Page 55
    ... using forward rates on a monthly basis. For net investment hedges, the spot-to-spot method is used to calculate effectiveness. Under this method, the change in fair value of the forward contract attributable to the changes in spot exchange rates (the effective portion) is reported as a component...

  • Page 56
    ... value of the asset, we calculate an impairment loss based on the asset's estimated fair value. The fair value of the assets is estimated using a discounted cash flow model based on forecasted future revenues and operating costs, using internal projections. Property, plant and equipment assets...

  • Page 57
    ... as revenue, and the related shipping costs are included in cost of sales including occupancy costs on the consolidated statements of earnings. Initial nonrefundable development fees for licensed stores are recognized upon substantial performance of services for new market business development...

  • Page 58
    ... net of sales discounts given to customers for trade promotions and payments to customers for product placement in our customers' stores. Revenues from sales of products to manufacturers that produce and market Starbucks and Seattle's Best Coffee branded products through licensing agreements are...

  • Page 59
    ... value is calculated using the stock price at the date of grant. Foreign Currency Translation Our international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense...

  • Page 60
    .... Reclassifications In the second quarter of fiscal 2011, concurrent with the change in our distribution method for packaged coffee and tea in the US, we revised the presentation of revenues. Non-retail licensing revenues were reclassified on the consolidated financial statements to the renamed "CPG...

  • Page 61
    ... balance sheet (in millions): Financial Statement Location Cash Flow Hedges Oct 2, 2011 Oct 3, 2010 Net Investment Hedges Oct 2, 2011 Oct 3, 2010 Other Derivatives Oct 2, 2011 Oct 3, 2010 Prepaid expenses and other current assets ...Other accrued liabilities ...Other long-term liabilities ...Total...

  • Page 62
    ... 2011 Oct 3, 2010 Foreign exchange ...Dairy ... $499 $ 10 $593 $ 20 Note 3: Fair Value Measurements Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Other Significant Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs October 2, 2011...

  • Page 63
    ...based upon the quoted market price of similar assets or the present value of expected future cash flows, calculated by applying revenue multiples to estimate future operating results and using discount rates appropriate for the duration and the risks involved. Fair values for certificates of deposit...

  • Page 64
    ..., respectively, is included in accrued compensation and related costs on the consolidated balance sheets. The changes in net unrealized holding gains/ losses in the trading portfolio included in earnings for fiscal years 2011 and 2010 were a net loss of $2.1 million and a net gain of $4.1 million...

  • Page 65
    ... future cash flows for the reporting unit, using internal projections. The resulting impairment charge was included in store operating expenses (2) (3) Fair Value of Other Financial Instruments The estimated fair value of the $550 million of 6.25% Senior Notes based on the quoted market price was...

  • Page 66
    ...respectively, on our consolidated balance sheets, primarily related to product sales and store license fees. As of October 2, 2011, the aggregate market value of our investment in Starbucks Japan was approximately $334 million, determined based on its available quoted market price, which exceeds its...

  • Page 67
    ... 2, 2011, we had a $37.9 million investment of equity interests in entities that develop and operate Starbucks licensed retail stores in several global markets. We have the ability to acquire additional interests in some of these cost method investees at certain intervals. Depending on our total...

  • Page 68
    ...available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases and is currently set to mature in November 2014. No borrowings were outstanding under the credit facility at the end of fiscal 2011 or fiscal 2010. The interest rate for any...

  • Page 69
    ... 2011 $ 96.5 166.3 $262.8 Oct 3, 2010 Deferred rent ...Unrecognized tax benefits ...Asset retirement obligations ...Other ...Total other long term liabilities ...Note 10: Leases Oct 2, 2011 $215.2 56.7 50.1 25.8 $347.8 $239.7 65.1 47.7 22.6 $375.1 Rental expense under operating lease agreements...

  • Page 70
    ... liabilities on the consolidated balance sheets. Assets held under capital leases are included in net property, plant and equipment on the consolidated balance sheets. Note 11: Shareholders' Equity In addition to 1.2 billion shares of authorized common stock with $0.001 par value per share, we have...

  • Page 71
    ...Stock and Benefit Plans We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units ("RSUs"), or stock appreciation rights to employees, non-employee directors and consultants. We issue new shares...

  • Page 72
    ...ESPP ...Total stock-based compensation expense recognized in the consolidated statement of earnings ...Total related tax benefit ...Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets ...Stock Option Plans $ 60...

  • Page 73
    ...money options had been exercised on the last business day of the period indicated. The following is a summary of stock options outstanding at the end of fiscal 2011 (shares in millions): Options Outstanding Weighted Average Weighted Remaining Average Number of Contractual Exercise Options Life Price...

  • Page 74
    ... stock, subject to an annual maximum dollar amount. The purchase price is 95% of the fair market value of the stock on the last business day of the quarterly offering period. The number of shares issued under our ESPP was 0.5 million in fiscal 2011. Deferred Stock Plan We have a deferred stock plan...

  • Page 75
    years. As of October 2, 2011 and October 3, 2010, 3.4 million shares were deferred under the terms of this plan. The rights to receive these shares, represented by common stock units, are included in the calculation of basic and diluted earnings per share as common stock equivalents. No new initial ...

  • Page 76
    ...compensation ...Net operating losses ...Other ...Total ...Valuation allowance ...Total deferred tax asset, net of valuation allowance ...Deferred tax liabilities: Property, plant and equipment ...Other ...Total ...Net deferred tax asset ...Reported as: Current deferred income tax assets ...Long-term...

  • Page 77
    ...except EPS): Fiscal Year Ended Net earnings attributable to Starbucks ...Weighted average common shares and common stock units outstanding (for basic calculation) ...Dilutive effect of outstanding common stock options and RSUs ...Weighted average common and common equivalent shares outstanding (for...

  • Page 78
    ...sold a selection of Starbucks and Seattle's Best Coffee branded packaged coffees in grocery and warehouse club stores throughout the US, and to grocery stores in Canada, the UK and other European countries. Kraft managed the distribution, marketing, advertising and promotion of these products. Kraft...

  • Page 79
    ... by type of cost and by reportable segment for the prior three fiscal years were as follows.(in millions): By Type of Cost Lease Exit Employee and Other Asset Termination Related Costs Impairments Costs By Segment Total US International Other Costs incurred and charged to expense in fiscal 2010...

  • Page 80
    ... to a company-operated market. In the fourth quarter of fiscal 2010, we acquired 100% ownership of a previously consolidated 50% joint venture in the US with Johnson Coffee Corporation, Urban Coffee Opportunities ("UCO"). The following table shows the effects of the change in Starbucks ownership...

  • Page 81
    ... to or managed by any segment, and are not included in the reported financial results of the operating segments. Revenue mix by product type (in millions): Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Sep 27, 2009 Beverage ...Food ...Whole bean and soluble coffees ...Other(1) ...Total ...(1) $ 7,217...

  • Page 82
    ...559.9 In the first quarter of fiscal 2012, we acquired the outstanding shares of Evolution Fresh, Inc., a specialty juice company, to expand our portfolio of product offerings and enter into the super-premium juice market. We acquired Evolution Fresh for a purchase price of $30 million in cash. 76

  • Page 83
    ... of Directors and Shareholders of Starbucks Corporation Seattle, Washington We have audited the accompanying consolidated balance sheets of Starbucks Corporation and subsidiaries (the "Company") as of October 2, 2011 and October 3, 2010, and the related consolidated statements of earnings, equity...

  • Page 84
    ... changes to our business processes and related internal controls over financial reporting, which have continued into the fourth quarter of fiscal 2011. Management has taken the necessary steps to update the design and documentation of internal control processes and procedures relating to the system...

  • Page 85
    ... Based on this evaluation, management concluded that our internal control over financial reporting was effective as of October 2, 2011. Our internal control over financial reporting as of October 2, 2011, has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as...

  • Page 86
    ... opinion. A company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and other...

  • Page 87
    Item 9B. None. Other Information 81

  • Page 88
    ...chief executive officer, chief financial officer or controller, we will disclose the nature of the amendment or waiver, its effective date and to whom it applies on our website at http://www.starbucks.com/about-us/company-information/corporate-governance or in a report on Form 8-K filed with the SEC...

  • Page 89
    ... 2010, and September 27, 2009; • Notes to Consolidated Financial Statements; and • Reports of Independent Registered Public Accounting Firm 2. Financial Statement Schedules Financial statement schedules are omitted because they are not required or are not applicable, or the required information...

  • Page 90
    ... by the undersigned, thereunto duly authorized. STARBUCKS CORPORATION By: /s/ Howard Schultz Howard Schultz chairman, president and chief executive officer November 18, 2011 POWER OF ATTORNEY Know all persons by these presents, that each person whose signature appears below constitutes and appoints...

  • Page 91
    Signature Title By: /s/ Joshua Cooper Ramo Joshua Cooper Ramo By: /s/ Sheryl Sandberg Sheryl Sandberg By: /s/ ... Teruel Javier G. Teruel By: /s/ Myron E. Ullman, III Myron E. Ullman, III By: /s/ Craig E. Weatherup Craig E. Weatherup director director director director director director 85

  • Page 92
    ... 1, 2011 Starbucks Corporation 1997 Deferred Stock Plan Starbucks Corporation UK Share Save Plan Starbucks Corporation Directors Deferred Compensation Plan, as amended and restated effective September 29, 2003 Starbucks Corporation Deferred Compensation Plan for Non-Employee Directors, effective...

  • Page 93
    ... Long-Term Equity Incentive Plan Restricted Stock Unit Grant Agreement under the 2005 Non-Employee Director Sub-Plan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan Letter Agreement dated February 5, 2009 between Starbucks Corporation and John Culver 2005 Company-Wide Sub-Plan to...

  • Page 94
    ...Equity Incentive Plan Time Vested Restricted Stock Unit Agreement (International) under Starbucks Corporation 2005 Long-Term Equity Incentive Plan Performance Based Restricted Stock Unit Agreement under Starbucks Corporation 2005 Long-Term Equity Incentive Plan Separation Agreement and Release dated...

  • Page 95
    ... financial statements from the Company's 10-K for the fiscal year ended October 2, 2011, formatted in XBRL: (i) Condensed Consolidated Statements of Earnings, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Cash Flows (iv) Consolidated Statements of Equity...

  • Page 96
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  • Page 97
    ... accessing the Investor Relations section of the company's website at http://investor.starbucks.com, at http://sec.gov, or by making a request to Investor Relations via the address, phone number or website listed below. Starbucks Coffee Company Investor Relations S-SR1 PO Box 34067 Seattle, WA 98124...

  • Page 98
    ...our partners, our communities and you. As we look forward, we're excited by ongoing innovation, new channels of distribution, expansion into new markets, and how these opportunities will allow us to make a difference in even more communities around the world. Keurig, the Cup and Star design, Keurig...