Starbucks 2013 Annual Report Download - page 45

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During each of the first three quarters of fiscal 2012, we declared and paid a cash dividend to shareholders of $0.17 per share.
In the fourth quarter of fiscal 2012 and each of the first three quarters of fiscal 2013 we declared a cash dividend of $0.21 per
share. Cash dividends paid in fiscal 2013 and 2012 totaled $629 million and $513 million, respectively. In the fourth quarter of
fiscal 2013, we declared a cash dividend of $0.26 per share to be paid on November 29, 2013 with an expected payout of $196
million.
During fiscal years 2013 and 2012, we repurchased 11 million and 12 million shares of common stock, respectively, or $544
million and $593 million, respectively, under share repurchase authorizations. The number of remaining shares authorized for
repurchase at September 29, 2013 totaled 26.4 million.
Cash Flows
Cash provided by operating activities was $2.9 billion for fiscal year 2013, compared to $1.8 billion for fiscal year 2012. The
increase was primarily due to increased earnings, excluding the accrued litigation charge, and improvements in working capital
accounts, primarily driven by a decrease in inventories and an increase in accounts payable.
Cash used by investing activities totaled $1.4 billion for fiscal years 2013, compared to $974 million for fiscal year 2012. The
increase was primarily due to cash paid to acquire Teavana and an increase in capital expenditures, primarily for remodeling
and renovating existing company-operated stores and opening new retail stores, partially offset by a net increase in cash
received from investment securities.
Cash used by financing activities for fiscal year 2013 totaled $108 million, compared to $746 million for fiscal year 2012. The
decrease was primarily due to the net cash proceeds from the fiscal 2013 issuance of long-term debt, partially offset by an
increase in cash returned to shareholders through higher dividend payments in fiscal 2013.
Contractual Obligations
Our contractual obligations and borrowings as of September 29, 2013, 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) $ 4,585.9 $ 875.1 $ 1,490.2 $ 978.1 $ 1,242.5
Purchase obligations(3) 915.7 570.4 300.3 45.0 —
Debt obligations(4) 1,697.3 48.8 126.5 642.1 879.9
Other obligations(5) 2,837.6 2,787.7 6.0 6.4 37.5
Total $ 10,036.5 $ 4,282.0 $ 1,923.0 $ 1,671.6 $ 2,159.9
(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 29, 2013, we had $91.1 million of gross
unrecognized tax benefits for uncertain tax positions.
(2) Amounts include 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 96% of total purchase
obligations.
(4) Debt amounts include principal maturities and scheduled interest payments on our long-term debt.
(5) Other obligations include our estimated future payments associated with the accrued litigation charge and other long-
term liabilities primarily consisting of asset retirement obligations, capital lease obligations and hedging instruments.
Starbucks currently expects to fund these commitments primarily 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.
2013 10-K
Starbucks Corporation Form