Starbucks 2012 Annual Report Download - page 89

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83
As of September 30, 2012, Starbucks has utilized all of its foreign tax credits and no longer has a foreign tax
credit carryforward. Starbucks has a capital loss carryforward of $7.1 million, with an expiration date of 2015, and
foreign net operating losses of $318 million, with the predominant amount having no expiration date.
Taxes currently payable of $50.8 million and $30.1 million are included in accrued liabilities on the consolidated
balance sheets as of September 30, 2012 and October 2, 2011, respectively.
Uncertain Tax Positions
As of September 30, 2012, we had $75.3 million of gross unrecognized tax benefits of which $39.7 million, if
recognized, would affect our effective tax rate. We recognize interest and penalties related to income tax matters
in income tax expense. As of September 30, 2012 and October 2, 2011, we had accrued interest and penalties of
$5.5 million and $6.2 million, respectively, before the benefit of the federal tax deduction, recorded on our
consolidated balance sheets.
The following table summarizes the activity related to our unrecognized tax benefits (in millions):
Beginning balance 52.9 68.4 49.1
Increase related to prior year tax positions 8.8 4.4 35.0
Decrease related to prior year tax positions
—
(32.3) (21.4)
Increase related to current year tax positions 20.0 26.0 14.1
Decrease related to current year tax positions (1.1) (0.8) (8.1)
Decreases related to settlements with taxing authorities (0.5) (5.0)
—
Decreases related to lapsing of statute of limitations (4.8) (7.8) (0.3)
Ending balance 75.3 52.9 68.4
We are currently under routine audit by various jurisdictions outside the US as well as US state taxing
jurisdictions for fiscal years 2006 through 2011. We are no longer subject to US federal or state examination for
years prior to fiscal year 2009, with the exception of seven states. We are subject to income tax in many
jurisdictions outside the US. We are no longer subject to examination in any material international markets prior
to 2006.
There is a reasonable possibility that the unrecognized tax benefits will change within 12 months, but we do not
expect this change to be material to the consolidated financial statements.
Note 14: Earnings per Share
Calculation of net earnings per common share (“EPS”) — basic and diluted (in millions, except EPS):
Fiscal Year Ended Sep 30, 2012 Oct 2, 2011 Oct 3, 2010
Net earnings attributable to Starbucks $ 1,383.8 $ 1,245.7 $ 945.6
Weighted average common shares and common stock units
outstanding (for basic calculation) 754.4 748.3 744.4
Dilutive effect of outstanding common stock options and
RSUs 18.6 21.4 19.8
Weighted average common and common equivalent shares
outstanding (for diluted calculation) 773.0 769.7 764.2
EPS — basic $ 1.83 $ 1.66 $ 1.27
EPS — diluted $ 1.79 $ 1.62 $ 1.24
Sep 30, 2012 Oct 2, 2011 Oct 3, 2010
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