Starbucks 2013 Annual Report Download

Download and view the complete annual report

Please find the complete 2013 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

STARBUCKS CORPORATION
Fiscal 2013 Annual Report

Table of contents

  • Page 1
    STA R B UCKS CO R PO R ATIO N Fiscal 2013 Annual Report

  • Page 2

  • Page 3
    ... 150 basis points higher than last year. This strong revenue growth, coupled with excellent margin improvement, led to record non-GAAP earnings per share* of $2.26, up 26 percent over fiscal 2012. Through dividends and share repurchases, Starbucks returned a record $1.2 billion of cash to you...

  • Page 4
    ...$90 billion global tea industry what we have done for coffee. In juice, we exceeded our aggressive growth plans for Evolution Freshâ„¢ , which is now available in more than 8,000 locations, while the opening of our state-of-the-art juicery in California will help us further increase our share of the...

  • Page 5
    ...new store designs are enhancing the Starbucks Experience; indeed, our fleet of new stores is among the best performing in the company's history. What's more, nearly 7 million people are active My Starbucks Rewardsâ„¢ members in the U.S., with $4 billion loaded onto cards in fiscal 2013 globally, and...

  • Page 6
    Fiscal 2013 Financial Highlights Net Revenues (in Billions) $13.3 $11.7 $10.7 $9.8 7% (A) $14.9 Comparable Store Sales Growth (Company-Operated Stores Open 13 Months or Longer) 8% 7% 7% (6%) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Operating Income / (Loss) (in Millions) GAAP...

  • Page 7
    ... closing sale price of the registrant's common stock on March 29, 2013 as reported on the NASDAQ Global Select Market was $41 billion. As of November 8, 2013, there were 753.6 million shares of the registrant's Common Stock outstanding. DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive...

  • Page 8
    ... Statements and Supplementary Data Item 8 Report of Independent Registered Public Accounting Firm Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Item 9 Controls and Procedures Item 9A Other Information Item 9B PART III Directors, Executive Officers and Corporate...

  • Page 9
    ...contained in this Annual Report on Form 10-K and any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act...

  • Page 10
    ... on consolidated net revenues, total operating expenses, operating income, or net earnings as a result of these changes. Starbucks segment information is included in Note 16 to the consolidated financial statements included in Item 8 of Part II of this 10-K. 2 Starbucks Corporation 2013 Form...

  • Page 11
    ... region. Company-operated Stores Revenue from company-operated stores accounted for 79% of total net revenues during fiscal 2013. Our retail objective is to be the leading retailer and brand of coffee in each of our target markets by selling the finest quality coffee and related products, and...

  • Page 12
    ...30, 2012 Opened Closed Net Stores Open as of Sep 29, 2013 Americas : US Canada Brazil Puerto Rico Total Americas EMEA : UK Germany France Switzerland Austria Netherlands Total EMEA CAP: China Thailand Singapore Australia Total CAP All Other Segments: Teavana(3) Seattle's Best Coffee Evolution Fresh...

  • Page 13
    ... reward points ("Stars") earned in a 12-month period. Licensed Stores Product sales to and royalty and license fee revenues from our licensed stores accounted for 9% of total net revenues in fiscal 2013. In our licensed store operations, we leverage the expertise of our local partners and share our...

  • Page 14
    ...573 Americas store data has been adjusted for the sale of store locations in Chile to a joint venture partner in the fourth quarter of fiscal 2013 by reclassifying historical information from company-operated stores to licensed stores, and to exclude Seattle's Best Coffee and Evolution Fresh, which...

  • Page 15
    ... who work with coffee farming communities to promote best practices in coffee production designed to improve both coffee quality and yields. In addition to coffee, we also purchase significant amounts of dairy products, particularly fluid milk, to support the needs of our company-operated stores. We...

  • Page 16
    ..., Americas and US, EMEA and Teavana group president, China & Asia Pacific, Channel Development and Emerging Brands president, China & Asia Pacific chief financial officer and group president, Global Business Services executive vice president, general counsel and secretary 8 Starbucks Corporation...

  • Page 17
    ... to June 2012, he served as president, Channel Development and president, Seattle's Best Coffee. From June 2010 to October 2011, he served as president, Global Consumer Products and Foodservice. Prior to joining Starbucks, Mr. Hansberry served as vice president and general manager, Popular BU for...

  • Page 18
    ... demand for our current offerings; • continuing to accelerate the growth of our Channel Development business; • balancing disciplined global store growth and existing store renovation while meeting target store-level unit economics in a given market; • timely completion of certain supply chain...

  • Page 19
    ... and develop in a certain market. Our international operations are also subject to additional inherent risks of conducting business abroad, such as: • foreign currency exchange rate fluctuations, or requirements to transact in specific currencies; • changes or uncertainties in economic, legal...

  • Page 20
    ... quality products and service experience whether they visit a company-operated store, licensed store or food service location. We also source our food, beverage and other products from a wide variety of domestic and international business partners in our supply chain operations, and in certain cases...

  • Page 21
    ... business, financial condition and/or results of operations: • declines in general consumer demand for specialty coffee products; • increases in labor costs such as increased health care costs, general market wage levels and workers' compensation insurance costs; • adverse outcomes of current...

  • Page 22
    ...potential liability and loss of revenues. We rely heavily on information technology systems across our operations, including for administrative functions, point-of-sale processing and payment in our stores and online, management of our supply chain, Starbucks Cards, online business and various other...

  • Page 23
    ..., Starbucks had 10,194 company-operated stores, almost all of which are leased. We also lease space in various locations worldwide for regional, district and other administrative offices, training facilities and storage. Item 3. Legal Proceedings See Note 15 to the consolidated financial statements...

  • Page 24
    ... on our operating performance, financial condition, capital expenditure requirements, and other such factors that the Board of Directors considers relevant. ISSUER PURCHASES OF EQUITY SECURITIES Starbucks did not repurchase any shares during the fourth quarter of fiscal 2013. As of the end of the...

  • Page 25
    ...future price performance. $600 $500 $400 $300 $200 $100 $0 9/28/08 9/27/09 10/3/10 10/2/11 9/30/12 9/29/13 Starbucks Corporation NASDAQ Composite S&P 500 S&P Consumer Discretionary Sep 28, 2008 Sep 27, 2009 Oct 3, 2010 Oct 2, 2011 Sep 30, 2012 Sep 29, 2013 Starbucks Corporation...

  • Page 26
    ...'s Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors," and the consolidated financial statements and notes. Financial Information (in millions, except per share data): Sep 29, 2013 (52 Wks) Sep 30, 2012 (52 Wks) Oct 2, 2011 (52 Wks) Oct 3, 2010 (53 Wks...

  • Page 27
    ... only Starbucks® company-operated stores open 13 months or longer. For fiscal year 2010, comparable store sales percentages were calculated excluding the 53rd week. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates. Starbucks Corporation 2013 Form...

  • Page 28
    ...(9) Americas store data has been adjusted for the sale of store locations in Chile to a joint venture partner in the fourth quarter of fiscal 2013 by reclassifying historical information from company-operated stores to licensed stores, and to exclude Seattle's Best Coffee and Evolution Fresh, which...

  • Page 29
    ... new store openings, are reported net of related store closures, unless otherwise noted. Financial Highlights Total net revenues increased 12.0% to $14.9 billion in fiscal 2013 compared to $13.3 billion in fiscal 2012. Global comparable store sales grew 7% driven by a 5% increase in the number of...

  • Page 30
    ... markets; 2) Europe, Middle East, and Africa, ("EMEA"); 3) China / Asia Pacific ("CAP") and 4) Channel Development. All Other Segments includes Teavana, Seattle's Best Coffee and Evolution Fresh, as well as our Digital Ventures business. The Americas, EMEA and CAP segments include company-operated...

  • Page 31
    ... a decrease in coffee costs. Store operating expenses as a percentage of total net revenues decreased 70 basis points. As a percentage of company-operated store revenues, store operating expenses decreased 90 basis points, primarily driven by sales leverage in our Americas segment (approximately 90...

  • Page 32
    ...operating margin of (220) basis points. Other Income and Expenses Fiscal Year Ended Sep 29, 2013 Sep 30, 2012 Sep 29, 2013 Sep 30, 2012 % of Total Net Revenues Operating income/(loss) Interest income and other, net Interest expense Earnings/(loss) before income taxes Income taxes Net earnings...

  • Page 33
    ...total net revenues increased 40 basis points primarily due to the costs related to our October Global Leadership Conference (approximately 20 basis points). The combination of these changes resulted in an increase in operating margin of 120 basis points over fiscal 2012. Starbucks Corporation 2013...

  • Page 34
    ...-companyoperated store revenues, other operating expenses decreased 250 basis points, mainly driven by sales leverage (approximately 180 basis points). The above changes contributed to an overall improvement in operating margin of 490 basis points over fiscal 2012. 26 Starbucks Corporation 2013...

  • Page 35
    ... costs to store operating expenses in the current year (approximately 110 basis points). Income from equity investees increased $30 million, primarily due to improved performance of our joint venture operations in Japan and China. The above changes resulted in the operating margin percentage...

  • Page 36
    ... in operating margin of 290 basis points over fiscal 2012. All Other Segments Fiscal Year Ended Sep 29, 2013 Sep 30, 2012 % Change Total net revenues Cost of sales Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Total...

  • Page 37
    ... higher coffee costs. Store operating expenses as a percentage of total net revenues decreased 120 basis points, due to increased Channel Development and licensed store revenues. Store operating expenses as a percent of company-operated store revenues decreased 10 basis points due to increased sales...

  • Page 38
    ... As a percentage of net revenues excluding company-operated store revenues, other operating expenses decreased 350 basis points. This decrease was primarily driven by increased sales leverage (approximately 150 basis points), the absence of charges in fiscal 2012 related to the Seattle's Best Coffee...

  • Page 39
    ... store sales and the opening of 270 net new licensed stores over the past 12 months. Operating Expenses Cost of sales including occupancy costs as a percentage of total net revenues increased 30 basis points, primarily driven by higher commodity costs (approximately 110 basis points), mainly coffee...

  • Page 40
    ... of 101 net new licensed stores over the past 12 months. Operating Expenses Cost of sales including occupancy costs as a percentage of total net revenues increased 160 basis points, primarily driven by higher costs related to the transition to a consolidated food and dairy distribution model in the...

  • Page 41
    ...Asia Pacific Sep 30, 2012 Oct 2, 2011 Sep 30, 2012 Oct 2, 2011 Fiscal Year Ended As a % of CAP Total Net Revenues Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses...

  • Page 42
    ...$33 million, primarily due to incremental revenues from Evolution Fresh, which was acquired during the first quarter of fiscal 2012. Total operating expenses increased $28 million, primarily due to increased cost of sales resulting from higher coffee costs. 34 Starbucks Corporation 2013 Form 10-K

  • Page 43
    ... with Kraft. FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Investment Overview Starbucks cash and short-term investments were $3.2 billion and $2.0 billion as of September 29, 2013 and September 30, 2012, respectively. As of September 29, 2013, approximately $994.4 million of cash was...

  • Page 44
    ... existing company-operated stores; systems and technology investments in the stores and in the support infrastructure; and additional investments in manufacturing capacity. Total capital expenditures for fiscal 2014 are expected to be approximately $1.2 billion. 36 Starbucks Corporation 2013 Form...

  • Page 45
    ... with operating cash flows generated in the normal course of business. Off-Balance Sheet Arrangements Off-balance sheet arrangements relate to operating lease and purchase commitments detailed in the footnotes to the consolidated financial statements in this 10-K. Starbucks Corporation 2013 Form...

  • Page 46
    ... high-quality whole bean arabica coffee and related products and risk arises from the price volatility of green coffee. In addition to coffee, we also purchase significant amounts of dairy products to support the needs of our company-operated stores. The price and availability of these commodities...

  • Page 47
    ... the consolidated balance sheets at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income. We do not hedge the interest rate exposure on our available-for-sale securities. We performed a sensitivity analysis based on a 100 basis point change in...

  • Page 48
    ...and operating expenses are based on internal projections considering a reporting unit's past performance and forecasted growth, local market economics and the local business environment impacting the reporting unit's performance. The discount rate is calculated using an estimated cost of capital for...

  • Page 49
    ..., the fair value of a reporting units' assets and liabilities. Further, our ability to realize the future cash flows used in our fair value calculations is affected by factors such as changes in economic conditions, changes in our operating performance, and changes in our business strategies. During...

  • Page 50
    ... Analysis of Financial Condition and Results of Operations - Commodity Prices, Availability and General Risk Conditions" and "Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Risk Management" in Item 7 of this Report. 42 Starbucks Corporation 2013...

  • Page 51
    ... STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) Sep 29, 2013 Sep 30, 2012 Oct 2, 2011 Fiscal Year Ended Net revenues: Company-operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales including occupancy costs Store...

  • Page 52
    STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Sep 29, 2013 Sep 30, 2012 Oct 2, 2011 Net earnings including noncontrolling interests Other comprehensive income/(loss), net of tax: Unrealized holding gains/(losses) on available-for-sale securities Tax (expense)/...

  • Page 53
    STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) Sep 29, 2013 Sep 30, 2012 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net Total ...

  • Page 54
    ... method investees, net of distributions Gain resulting from sale/acquisition of equity in joint ventures Stock-based compensation Other Cash provided/(used) by changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Accrued liabilities and insurance reserves...

  • Page 55
    ... Balance, September 30, 2012 Net earnings Other comprehensive income/(loss) Stock-based compensation expense Starbucks Corporation Exercise of stock options, including tax benefit of $259.9 Sale of common stock, including tax benefit of $0.2 Repurchase of common stock Cash dividends...

  • Page 56
    ..., and Latin America; 2) Europe, Middle East, and Africa ("EMEA"); 3) China / Asia Pacific ("CAP") and 4) Channel Development. Teavana, Seattle's Best Coffee, Evolution Fresh and our Digital Ventures business are included in All Other Segments. Unallocated corporate operating expenses, which pertain...

  • Page 57
    ... risks within the consolidated financial statements according to a market price risk management policy. Under this policy, we may engage in transactions involving various derivative instruments to hedge interest rates, commodity prices and foreign currency denominated revenues, purchases, assets...

  • Page 58
    ... credit risk and application of the specific identification method. As of September 29, 2013 and September 30, 2012, the allowance for doubtful accounts was $5.7 million and $5.6 million, respectively. Inventories Inventories are stated at the lower of cost (primarily moving average cost) or market...

  • Page 59
    ... as revenue, and the related shipping costs are included in cost of sales including occupancy costs on the consolidated statements of earnings. Initial nonrefundable development fees for licensed stores are recognized upon substantial performance of services for new market business development...

  • Page 60
    ...to and license fee revenues from manufacturers that produce and market Starbucks and Seattle's Best Coffee branded products through licensing agreements. Sales of coffee, tea, ready-to-drink beverages and related products to grocery and warehouse club stores are generally recognized when received by...

  • Page 61
    ...have an employee stock purchase plan ("ESPP"). RSUs issued by us are equivalent to nonvested shares under the applicable accounting guidance. We record stock-based compensation expense based on the fair value of stock awards at the grant date and recognize the expense over the related service period...

  • Page 62
    ... structure designed to accelerate our global growth strategy. A president for each region, reporting directly to our chief executive officer, was appointed to oversee the company-operated retail business working closely with both the licensed and joint-venture business 54 Starbucks Corporation 2013...

  • Page 63
    ... consolidated financial statements have been recast with the following adjustments to previously reported amounts (in millions): Year Ended October 2, 2011 As Filed Reclass As Adjusted Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses...

  • Page 64
    ... Americas operating segment. On November 10, 2011, we acquired the outstanding shares of Evolution Fresh, Inc., a super-premium juice company, to expand our portfolio of product offerings and enter into the super-premium juice market. We acquired Evolution Fresh for a 56 Starbucks Corporation 2013...

  • Page 65
    ... into earnings within 12 months and will also continue to experience fair value changes before affecting earnings. Outstanding contracts will expire within 21 months. We also enter into net investment derivative instruments to hedge our equity method investment in Starbucks Coffee Japan, Ltd...

  • Page 66
    ... 12 months and will also continue to experience fair value changes before affecting earnings. Outstanding contracts will expire within 6 months. Dairy To mitigate the price uncertainty of a portion of our future purchases of dairy products, we enter into futures contracts that are not designated as...

  • Page 67
    ...3) Balance at September 29, 2013 Assets: Cash and cash equivalents Short-term investments: Available-for-sale securities Agency obligations Commercial paper Corporate debt securities Government treasury securities Certificates of deposit Total available-for-sale securities Trading securities Total...

  • Page 68
    ...3) Balance at September 30, 2012 Assets: Cash and cash equivalents Short-term investments: Available-for-sale securities Agency obligations Commercial paper Corporate debt securities Government treasury securities Certificates of deposit Total available-for-sale securities Trading securities Total...

  • Page 69
    ... coffee commodity price prior to the delivery date. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on relationships established with our suppliers in the past, the risk of non-delivery on such purchase commitments is remote. Starbucks Corporation...

  • Page 70
    ... million and $33.0 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues. As of September 29, 2013, the aggregate market value of our investment in Starbucks Japan was approximately $691 million...

  • Page 71
    ...% interest in Starbucks Coffee Argentina S.R.L. to our joint venture partner Alsea, S.A.B. de C.V., for a total purchase price of $4.4 million. This transaction resulted in a loss of $1.0 million, which was included in net interest income and other in the consolidated statements of earnings. During...

  • Page 72
    ... 2014 through fiscal 2018, and a total of approximately $29 million thereafter. Changes in the carrying amount of goodwill by reportable operating segment (in millions): China / Asia Pacific Channel Development All Other Segments Americas EMEA Total Balance at October 2, 2011 (1) Goodwill...

  • Page 73
    ..., in an underwritten registered public offering. Interest on the 2007 notes is payable semi-annually on February 15 and August 15 of each year. As of September 29, 2013 and September 30, 2012, the carrying value of the 2007 notes, recorded on the consolidated balance sheets, was $549.7 million and...

  • Page 74
    ... share of the net assets of Starbucks Japan at the time of its initial public stock offering in fiscal 2002. Share repurchase activity (in millions, except for average price data): Period Ended Sep 29, 2013 Sep 30, 2012 Number of shares acquired Average price per share of acquired shares Total cost...

  • Page 75
    ...compensation expense recognized in the consolidated financial statements (in millions): Fiscal Year Ended Sep 29, 2013 Sep 30, 2012 Oct 2, 2011 Options RSUs Total stock-based compensation expense recognized in the consolidated statements of earnings Total related tax benefit Total capitalized stock...

  • Page 76
    ...of our common stock, subject to an annual maximum dollar amount. The purchase price is 95% of the fair market value of the stock on the last business day of the quarterly offering period. The number of shares issued under our ESPP was 0.3 million in fiscal 2013. 68 Starbucks Corporation 2013 Form 10...

  • Page 77
    ... US and non-US plans were $54.7 million, $59.8 million, and $45.5 million in fiscal years 2013, 2012, and 2011, respectively. Note 13: Income Taxes The components of earnings/(loss) before income taxes were as follows (in millions): Fiscal Year Ended Total Sep 29, 2013 Litigation charge All Other...

  • Page 78
    ... effective income tax rate: Fiscal Year Ended Total Sep 29, 2013 Litigation charge Sep 30, 2012 All Other Oct 2, 2011 Statutory rate State income taxes, net of federal tax benefit Benefits and taxes related to foreign operations Domestic production activity deduction Domestic tax credits Charitable...

  • Page 79
    ...allowance as of September 29, 2013 and September 30, 2012 is primarily related to net operating losses and other deferred tax assets of consolidated foreign subsidiaries. The net change in the total valuation allowance for the years ended September 29, 2013 and September 30, 2012, was an increase of...

  • Page 80
    ...sold a selection of Starbucks and Seattle's Best Coffee branded packaged coffees in grocery and warehouse club stores throughout the US, and to grocery stores in Canada, the UK and other European countries. Kraft managed the distribution, marketing, advertising and promotion of these products. Kraft...

  • Page 81
    ... fiscal 2012, we renamed our Global Consumer Products Group segment "Channel Development." Effective at the beginning of fiscal 2013, we decentralized certain leadership functions in the areas of retail marketing and category management, global store development and partner resources to support and...

  • Page 82
    ... includes Teavana, Seattle's Best Coffee and Evolution Fresh, as well as our Digital Ventures business. Consolidated revenue mix by product type (in millions): Fiscal Year Ended Sep 29, 2013 Sep 30, 2012 Oct 2, 2011 Beverage Food Packaged and single serve coffees Other(1) Total (1) $ 8,588...

  • Page 83
    ... presents financial information for our reportable operating segments and All Other Segments for the years ended September 29, 2013, September 30, 2012, and October 2, 2011 including the reclassifications discussed in Note 1 (in millions): Americas EMEA China / Asia Pacific Channel Development All...

  • Page 84
    ... income in the table above to consolidated earnings/(loss) before income taxes (in millions): Fiscal Year Ended Sep 29, 2013 Sep 30, 2012 Oct 2, 2011 Total segment operating income Unallocated corporate operating expenses(1) Consolidated operating income/(loss) Interest income and other, net...

  • Page 85
    ...Board of Directors and Shareholders of Starbucks Corporation Seattle, Washington We have audited the accompanying consolidated balance sheets of Starbucks Corporation and subsidiaries (the "Company") as of September 29, 2013 and September 30, 2012, and the related consolidated statements of earnings...

  • Page 86
    ... rules and forms. Our disclosure controls and procedures are also designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial...

  • Page 87
    ... opinion. A company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and other...

  • Page 88
    ... September 29, 2013 and through and including all fiscal quarters ending on or before December 31, 2014. Starbucks previously disclosed that the arbitrator assigned to the matter has ordered Starbucks to pay Kraft $2.23 billion in damages plus prejudgment interest and attorneys' fees (the "Award...

  • Page 89
    ... to our chief executive officer, chief financial officer, controller and other finance leaders, which is a "code of ethics" as defined by applicable rules of the SEC. This code is publicly available on our website at www.starbucks.com/about-us/company-information/corporate-governance. If we...

  • Page 90
    ...30, 2012, and October 2, 2011; • Notes to Consolidated Financial Statements; and • Reports of Independent Registered Public Accounting Firm 2. Financial Statement Schedules Financial statement schedules are omitted because they are not required or are not applicable, or the required information...

  • Page 91
    ... 18, 2013. Signature Title By: /s/ Howard Schultz chairman, president and chief executive officer Howard Schultz By: /s/ Troy Alstead chief financial officer and group president, Global Business Services (principal financial officer and principal accounting officer) director Troy Alstead...

  • Page 92
    ... G. Shennan, Jr. director James G. Shennan, Jr. By: /s/ Clara Shih director Clara Shih By: /s/ Javier G. Teruel director Javier G. Teruel By: /s/ Myron E. Ullman, III director Myron E. Ullman, III By: /s/ Craig E. Weatherup director Craig E. Weatherup 84 Starbucks Corporation 2013 Form 10-K

  • Page 93
    ... Starbucks Corporation Executive Management Bonus Plan, as amended and restated effective November 8, 2011 8-K 0-20322 11/15/2012 2.1 10-Q 10-K 0-20322 0-20322 5/12/2006 11/16/2012 3.1 3.2 S-3ASR 333-190955 9/3/2013 4.1 8-K 8-K 8-K 0-20322 0-20322 0-20322 8/23/2007 8/23/2007 9/6/2013...

  • Page 94
    ... Exhibit Number Filed Herewith 10.7* Starbucks Corporation Management Deferred Compensation Plan, as amended and restated effective January 1, 2011 Starbucks Corporation 1997 Deferred Stock Plan Starbucks Corporation UK Share Save Plan Starbucks Corporation Directors Deferred Compensation Plan, as...

  • Page 95
    ...Exhibit Number Exhibit Description Form File No. Date of Filing Exhibit Number Filed Herewith 10.20* 2005 Company-Wide Sub-Plan to the Starbucks Corporation 2005 LongTerm Equity Incentive Plan, as amended and restated on September 14, 2010 Form of Stock Option Grant Agreement for Purchase of Stock...

  • Page 96
    ...Charges Subsidiaries of Starbucks Corporation Consent of Independent Registered Public Accounting Firm Power of Attorney (included on the Signatures page of this Annual Report on Form 10-K) Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934...

  • Page 97
    This page intentionally left blank.

  • Page 98
    This page intentionally left blank.

  • Page 99
    ... officer and Global Partner Resources Vivek Varma executive vice president, Public Affairs *executive officer Updated Financial Information Please visit http://investor.starbucks.com to find the latest financial information publicly available for the company. Keurig, the Cup and Star design, Keurig...

  • Page 100