Starbucks 2011 Annual Report Download - page 68

Changes in the carrying amount of goodwill by reportable operating segment (in millions):
United States International Other Total
Balance at September 27, 2009
Goodwill prior to impairment ................... $109.3 $117.0 $39.8 $266.1
Accumulated impairment charges ................ (7.0) 0.0 0.0 (7.0)
Goodwill ................................... $102.3 $117.0 $39.8 $259.1
Acquisitions .................................. 0.0 0.0 0.0 0.0
Purchasepriceadjustmentofpreviousacquisitions .... 1.0 0.0 0.0 1.0
Impairment ................................... 0.0 (1.6) 0.0 (1.6)
Other(1) ...................................... 0.0 3.9 0.0 3.9
Balance at October 3, 2010
Goodwill prior to impairment ................... $110.3 $120.9 $39.8 $271.0
Accumulated impairment charges ................ (7.0) (1.6) 0.0 (8.6)
Goodwill ................................... $103.3 $119.3 $39.8 $262.4
Acquisitions .................................. 0.0 63.8 0.0 63.8
Other(1) ...................................... 0.0 (4.6) 0.0 (4.6)
Balance at October 2, 2011
Goodwill prior to impairment ................... $110.3 $180.1 $39.8 $330.2
Accumulated impairment charges ................ (7.0) (1.6) 0.0 (8.6)
Goodwill ................................... $103.3 $178.5 $39.8 $321.6
(1) Other is primarily comprised of changes in the goodwill balance as a result of foreign exchange fluctuations.
Note 8: Debt (in millions)
Revolving Credit Facility and Commercial Paper Program
Our previous $1 billion unsecured credit facility (the “2005 credit facility”) was replaced in November 2010 with a
new $500 million unsecured credit facility (the “2010 credit facility”) with various banks, of which $100 million
may be used for issuances of letters of credit. As with the 2005 credit facility, the 2010 credit facility is 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 borrowings under the credit facility, based on Starbucks current
ratings and fixed charge coverage ratio, is 1.075% over LIBOR. The specific spread over LIBOR will depend upon
our long-term credit ratings assigned by Moody’s and Standard & Poor’s rating agencies and our fixed charge
coverage ratio. The credit facility contains provisions requiring us to maintain compliance with certain covenants,
including a minimum fixed charge coverage ratio which measures our ability to cover financing expenses. We have
the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment
amount by an additional $500 million.
Under our commercial paper program we may issue unsecured commercial paper notes, up to a maximum aggregate
amount outstanding at any time of $500 million under the 2010 credit facility, with individual maturities that may
vary, but not exceed, 397 days from the date of issue. The program is backstopped by the 2010 credit facility, and
the combined borrowing limit is $500 million for the commercial paper program and the credit facility. We may
issue commercial paper from time to time, and the proceeds of the commercial paper financing may be used for
working capital needs, capital expenditures and other corporate purposes, including acquisitions and share
repurchases. No borrowings were outstanding under the commercial paper program at the end of fiscal 2011 or
fiscal 2010.
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