Starbucks 2012 Annual Report Download - page 79
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73
Changes in the carrying amount of goodwill by reportable operating segment (in millions):
Americas EMEA
China /
Asia Pacific
Channel
Development Other Total
Balance at October 3, 2010(1)
Goodwill prior to impairment $ 163.6 $ 3.1 $ 74.8 $ 23.8 $ 5.7 $ 271.0
Accumulated impairment charges (8.6)
—
—
—
—
(8.6)
Goodwill $ 155.0 $ 3.1 $ 74.8 $ 23.8 $ 5.7 $ 262.4
Acquisitions
—
63.8
—
—
—
63.8
Purchase price adjustment of
previous acquisitions
—
—
—
—
—
—
Impairment
—
—
—
—
—
—
Other(2) (0.7) (3.9)
—
—
—
(4.6)
Balance at October 2, 2011(1)
Goodwill prior to impairment $ 162.9 $ 63.0 $ 74.8 $ 23.8 $ 5.7 $ 330.2
Accumulated impairment charges (8.6)
—
—
—
—
(8.6)
Goodwill $ 154.3 $ 63.0 $ 74.8 $ 23.8 $ 5.7 $ 321.6
Acquisitions 70.5
—
—
—
7.0 77.5
Purchase price adjustment of
previous acquisitions
—
—
—
—
—
—
Impairment
—
—
—
—
—
—
Other(2) 2.5 (3.0) 0.5
—
—
—
Balance at September 30, 2012
Goodwill prior to impairment $ 235.9 $ 60.0 $ 75.3 $ 23.8 $ 12.7 $ 407.7
Accumulated impairment charges (8.6)
—
—
—
—
(8.6)
Goodwill $ 227.3 $ 60.0 $ 75.3 $ 23.8 $ 12.7 $ 399.1
(1) In conjunction with the change in reportable operating segments, we reclassified goodwill by segment as of
October 2, 2011 and October 3, 2010.
(2) Other is primarily comprised of changes in the goodwill balance as a result of foreign exchange
fluctuations.
Note 9: Debt
Revolving Credit Facility and Commercial Paper Program
In November 2010, we replaced our previous credit facility with a new $500 million unsecured credit facility ("the
credit facility”) with various banks, of which $100 million may be used for issuances of letters of credit. The
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. Starbucks has the option,
subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an
additional $500 million. No borrowings were outstanding under the credit facility at the end of fiscal 2012 or
fiscal 2011.The interest rate for any borrowings under the credit facility, based on Starbucks current ratings and
fixed charge coverage ratio, is 0.85% 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