Starbucks 2012 Annual Report Download - page 14

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8
Our coffee and tea products sold through our Channel Development segment compete directly against specialty
coffees and teas sold through supermarkets, club stores and specialty retailers and compete indirectly against all
other coffees and teas on the market. Starbucks also faces competition from both restaurants and other specialty
retailers for prime retail locations and qualified personnel to operate both new and existing stores.
Patents, Trademarks, Copyrights and Domain Names
Starbucks owns and has applied to register numerous trademarks and service marks in the US and in additional
countries throughout the world. Some of our trademarks, including Starbucks, the Starbucks logo, Seattle’s Best
Coffee, Frappuccino, Starbucks VIA and Tazo are of material importance. The duration of trademark
registrations varies from country to country. However, trademarks are generally valid and may be renewed
indefinitely as long as they are in use and/or their registrations are properly maintained.
We own numerous copyrights for items such as product packaging, promotional materials, in-store graphics and
training materials. We also hold patents on certain products, systems and designs. In addition, Starbucks has
registered and maintains numerous Internet domain names, including “Starbucks.com”, “Starbucks.net”, and
“Seattlesbest.com.”
Seasonality and Quarterly Results
Our business is subject to seasonal fluctuations, including fluctuations resulting from the holiday season. Cash
flows from operations are considerably higher in the first fiscal quarter than the remainder of the year. This is
largely driven by cash received as Starbucks Cards are purchased and loaded during the holiday season. Since
revenues from Starbucks Cards are recognized upon redemption and not when purchased, seasonal fluctuations
on the consolidated statements of earnings are much less pronounced. Quarterly results can also be affected by
the timing of the opening of new stores and the closing of existing stores. For these reasons, results for any
quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.
Employees
Starbucks employed approximately 160,000 people worldwide as of September 30, 2012. In the US, Starbucks
employed approximately 120,000 people, with 113,000 in company-operated stores and the remainder in support
facilities, store development, and roasting and warehousing operations. Approximately 40,000 employees were
employed outside of the US, with 38,000 in company-operated stores and the remainder in regional support
facilities and roasting and warehousing operations. The number of Starbucks employees represented by unions is
not significant. We believe our current relations with our employees are good.
Executive officers of the registrant
Name Age Position
Howard Schultz 59 chairman, president and chief executive officer
Cliff Burrows 53 president, Starbucks Coffee Americas and US
John Culver 52 president, Starbucks Coffee China and Asia Pacific
Jeff Hansberry 48 president, Channel Development and Emerging Brands
Michelle Gass 44 president, Starbucks Coffee EMEA
Troy Alstead 49 chief financial officer and chief administrative officer
Lucy Lee Helm 55 executive vice president, general counsel and secretary