Starbucks 2012 Annual Report Download - page 49

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43
During fiscal years 2012 and 2011, we repurchased 12 million and 16 million shares of common stock ($593
million and $556 million, respectively) under share repurchase authorizations. The number of remaining shares
authorized for repurchase at September 30, 2012 totaled 12.1 million. On November 14, 2012, our Board of
Directors authorized the repurchase of up to an additional 25 million shares under our share repurchase program.
Cash Flows
Cash provided by operating activities was $1.8 billion for fiscal year 2012, compared to $1.6 billion for fiscal year
2011. The slight increase was primarily attributable to an increase in net earnings in fiscal 2012. This was partially
offset by a net increase in our working capital accounts, due primarily to increased payments on accounts payable.
Cash used by investing activities totaled $1.0 billion for fiscal years 2012 and 2011. Net cash proceeds on
investment maturities were offset by an increase in capital expenditures, primarily for remodeling and renovating
existing company-operated stores and opening new retail stores, the absence of cash proceeds from the sale of
corporate real estate in the prior year and cash paid to acquire Evolution Fresh and Bay Bread, LLC (doing
business as La Boulange) in the first and fourth quarters of fiscal 2012, respectively.
Cash used by financing activities for fiscal year 2012 totaled $746 million, compared to $608 million for fiscal
year 2011. The increase was primarily due to an increase in cash returned to shareholders through higher dividend
payments in fiscal 2012.
The following table summarizes our contractual obligations and borrowings as of September 30, 2012, and the
timing and effect that such commitments are expected to have on our liquidity and capital requirements in future
periods (in millions):
Payments Due by Period
Contractual Obligations(1) Total
Less than 1
Year
1 - 3
Years
3 - 5
Years
More than
5 Years
Operating lease obligations(2) $ 4,060.2 $ 787.9 $ 1,368.9 $ 934.9 $ 968.5
Purchase obligations(3) 911.0 727.9 170.0 13.1
—
Debt obligations(4) 722.0 34.4 68.8 618.8
—
Other obligations(5) 94.9 19.4 9.6 8.3 57.6
Total $ 5,788.1 $ 1,569.6 $ 1,617.3 $ 1,575.1 $ 1,026.1
(1) Income tax liabilities for uncertain tax positions were excluded as we are not able to make a reasonably
reliable estimate of the amount and period of related future payments. As of September 30, 2012, we had
$78.4 million of gross unrecognized tax benefits for uncertain tax positions.
(2) Amounts include the direct lease obligations, excluding any taxes, insurance and other related expenses.
(3) Purchase obligations include agreements to purchase goods or services that are enforceable and legally
binding on Starbucks and that specify all significant terms. Green coffee purchase commitments comprise
94% of total purchase obligations.
(4) Debt amounts include principal maturities and scheduled interest payments on our long-term debt.
(5) Other obligations include other long-term liabilities primarily consisting of asset retirement obligations,
capital lease obligations and hedging instruments.
Starbucks currently expects to fund these commitments with operating cash flows generated in the normal course
of business.