Starbucks 2011 Annual Report Download - page 79

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arbitration but was based upon facts and circumstances at the time. Kraft rejected the offer immediately and did not
provide a counter-offer, effectively ending the discussions between the parties with regard to any payment.
Moreover, the offer was made prior to our investigation of Kraft’s breaches and without consideration of Kraft’s
continuing failure to comply with material terms of the agreements.
Starbucks is party to various other legal proceedings arising in the ordinary course of business, including certain
employment litigation cases that have been certified as class or collective actions, but, except as noted above, is not
currently a party to any legal proceeding that management believes could have a material adverse effect on our
consolidated financial position, results of operations or cash flows.
Note 16: Restructuring Charges
The restructuring efforts we began in fiscal 2008 to rationalize our store portfolio and the non-retail support
organization were completed in fiscal 2010. On a cumulative basis we closed 918 stores on a global basis as part of
this effort.
Restructuring charges by type of cost and by reportable segment for the prior three fiscal years were as follows.(in
millions):
By Type of Cost By Segment
Total
Lease Exit
and Other
Related Costs
Asset
Impairments
Employee
Termination
Costs US International Other
Costs incurred and charged to
expense in fiscal 2010 ......... $ 53.0 $ 53.0 $ 0.2 $ (0.2) $ 27.2 $25.8 $ 0.0
Costs incurred and charged to
expense in fiscal 2009 ......... 332.4 184.2 129.2 19.0 246.3 27.0 59.1
Costs incurred and charged to
expense in fiscal 2008 ......... 266.9 47.8 201.6 17.5 210.9 19.2 36.8
Cumulative costs incurred to date . . . 652.3 285.0 331.0 36.3 484.4 72.0 95.9
Accrued liability as of September 27,
2009 ....................... $104.0 $102.8 $ 1.2
Costs incurred in fiscal 2010,
excluding non-cash charges(1) .... 53.4 53.7 (0.3)
Cashpayments ................. (68.2) (67.3) (0.9)
Accrued liability as of October 3,
2010(2) ..................... $ 89.2 $ 89.2 $ 0.0
Cashpayments ................. (27.1) (27.1)
Other ........................ 0.5 0.5
Accrued liability as of October 2,
2011(2) ..................... $ 62.6 $ 62.6
(1) Non-cash charges and credits for lease exit and other related costs primarily represent deferred rent balances
recognized as expense credits at the cease-use date.
(2) The remaining liability relates to lease obligations for stores that were previously closed where Starbucks has
been unable to terminate the lease or find subtenants for the unused space.
Note 17: Acquisitions
In the fourth quarter of fiscal 2011, we acquired the 50% ownership interest in Switzerland and Austria from our
joint venture partner, Marinopoulos Holdings S.A.R.L, converting these markets to 100% owned company-operated
markets, for a purchase price of $65.5 million. As a result of this acquisition, we adjusted the carrying value of our
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