Starbucks 2011 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2011 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

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 deferrals are permitted under this plan; the plan
permits re-deferrals of previously deferred shares.
Defined Contribution Plans
We maintain voluntary defined contribution plans, both qualified and non-qualified, covering eligible employees as
defined in the plan documents. Participating employees may elect to defer and contribute a portion of their eligible
compensation to the plans up to limits stated in the plan documents, not to exceed the dollar amounts set by
applicable laws.
Our matching contributions to all US and non-US plans were $45.5 million, $23.5 million, and $19.7 million in
fiscal years 2011, 2010, and 2009, respectively.
Note 13: Income Taxes
The components of earnings before income taxes were as follows:
Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Sep 27, 2009
UnitedStates ......................................... $1,523.4 $1,308.9 $494.6
Foreign ............................................. 287.7 128.1 65.3
Totalearningsbeforeincometaxes ........................ $1,811.1 $1,437.0 $559.9
Provision for income taxes (in millions):
Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Sep 27, 2009
Current taxes:
Federal ............................................. $344.7 $457.5 $165.3
State ............................................... 61.2 79.6 35.0
Foreign ............................................. 37.3 38.3 26.3
Totalcurrenttaxes..................................... 443.2 575.4 226.6
Deferred taxes:
Federal ............................................. 111.6 (76.0) (48.3)
State ............................................... 8.3 (9.3) (10.7)
Foreign ............................................. 0.0 (1.4) 0.8
Totaldeferredtaxes.................................... 119.9 (86.7) (58.2)
Totalprovisionforincometaxes .......................... $563.1 $488.7 $168.4
Reconciliation of the statutory US federal income tax rate with our effective income tax rate:
Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Sep 27, 2009
Statutoryrate......................................... 35.0% 35.0% 35.0%
Stateincometaxes,netoffederalincometaxbenefit .......... 2.5% 2.5% 2.6%
Benefits and taxes related to foreign operations .............. (3.1)% (2.5)% (2.3)%
Domestic production activity deduction .................... (0.8)% (0.9)% (2.3)%
Credit resulting from employment audit .................... 0.0% 0.0% (2.0)%
Other, net(1) .......................................... (2.5)% (0.1)% (0.9)%
Effectivetaxrate ...................................... 31.1% 34.0% 30.1%
(1) Fiscal 2011 includes a benefit of 0.9% related to the acquisition of the remaining ownership interest in
Switzerland and Austria.
69